BILL NUMBER: SB 655	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 29, 2009

INTRODUCED BY   Senator Padilla

                        FEBRUARY 27, 2009

   An act to amend  Section 345.5   Sections
345.5 and 348  of the Public Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 655, as amended, Padilla. Independent System Operator: 
California Renewables Portfolio Standard Program: greenhouse gas
emissions.   transmission facilities.  
   Existing law 
    (1)     The Public Utilities Act 
requires the Independent System Operator, a nonprofit public benefit
corporation created pursuant to law, to ensure efficient use and
reliable operation of the state's electricity transmission grid. The
operator is required to manage the transmission grid and related
energy markets in a manner consistent with applicable state laws
intended to protect the public's health and the environment.
   This bill would require the Independent System Operator to support
and assist in implementing the California Renewables Portfolio
Standard Program and greenhouse gas emission reduction laws and
regulations. 
    (2) The act also requires the operator to adopt various standards
for the transmission facilities under its control.  
   This bill would additionally require the operator to adopt
security standards for those facilities by July 1, 2010. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares the
following:  
   (a) The deployment of smart grid technology creates additional
opportunities for unauthorized persons or entities to impact the
transmission grid.  
   (b) Because uninterrupted and reliable electric service is a
matter of public health and safety, and is necessary for the conduct
of commerce, it is the intent of the Legislature that the Independent
System Operator take all necessary steps to ensure that the
transmission grid is secure from intrusion by unauthorized persons or
entities. 
   SECTION 1.   SEC. 2.   Section 345.5 of
the Public Utilities Code is amended to read:
   345.5.  (a) The Independent System Operator, as a nonprofit,
public benefit corporation, shall conduct its operations consistent
with applicable state and federal laws and consistent with the
interests of the people of the state.
   (b)  The   To ensure the reliability of
electric service and the health and safety of the public, the 
Independent System Operator shall manage the transmission grid and
related energy markets in a manner that is consistent with all of the
following: 
   (1) Ensuring the reliability of electric service and the health
and safety of the public.  
   (2) 
    (1)  Making the most efficient use of available energy
resources. For purposes of this section, "available energy resources"
include energy, capacity, ancillary services, and demand bid into
markets administered by the Independent System Operator. "Available
energy resources" do not include a schedule submitted to the
Independent System Operator by an electrical corporation or a local
publicly owned electric utility to meet its own customer load.

   (3) 
    (2)  Reducing, to the extent possible, overall economic
cost to the state's consumers. 
   (4) 
    (3)  Supporting and assisting in implementation and
compliance with the California Renewables Portfolio Standard Program
(Article 16 (commencing with Section 399.11)). 
   (5) 
    (4)  Supporting and assisting in implementation and
compliance with greenhouse gas emission reduction laws and
regulations, including, but not limited to, the California Global
Warming Solutions Act of 2006 (Division 25.5 (commencing with Section
38500) of the Health and Safety Code). 
   (6) 
    (5)  Maximizing availability of existing electric
generation resources necessary to meet the needs of the state's
electricity consumers.
   (c) The Independent System Operator shall do all of the following:

   (1) Consult and coordinate with appropriate state and local
agencies to ensure that the Independent System Operator operates in
furtherance of state law regarding consumer and environmental
protection.
   (2) Ensure that the purposes and functions of the Independent
System Operator are consistent with the purposes and functions of
nonprofit, public benefit corporations in the state, including duties
of care and conflict-of-interest standards for officers and
directors of a corporation.
   (3) Maintain open meeting standards and meeting notice
requirements consistent with the general policies of the Bagley-Keene
Open Meetings Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code)
and affording the public the greatest possible access, consistent
with other duties of the corporation. The Independent System Operator'
s Open Meeting Policy, as adopted on April 23, 1998, and in effect as
of May 1, 2002, meets the requirements of this paragraph. The
Independent System Operator shall maintain a policy that is no less
consistent with the Bagley-Keene Open Meetings Act than its policy in
effect as of May 1, 2002.
   (4) Provide public access to corporate records consistent with the
general policies of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) and affording the public the greatest possible
access, consistent with the other duties of the corporation. The
Independent System Operator's Information Availability Policy, as
adopted on October 22, 1998, and in effect as of May 1, 2002, meets
the requirements of this paragraph. The Independent System Operator
shall maintain a policy that is no less consistent with the
California Public Records Act than its policy in effect as of May 1,
2002.
   SEC. 3.    Section 348 of the   Public
Utilities Code   is amended to read: 
   348.   (a)     (1)    The
Independent System Operator shall adopt inspection, maintenance,
repair, and replacement standards for the transmission facilities
under its control no later than September 30, 1997.  The
Independent System Operator shall adopt security standards for the
transmission facilities under its control on or before July 1, 2010.
  The 
    (2)     The  standards, which shall be
performance or prescriptive standards, or both, as appropriate, for
each substantial type of transmission equipment or facility, shall
provide for high quality, safe, and reliable service.  In

    (b)     In  adopting its standards,
the Independent System Operator shall consider: cost, local geography
and weather, applicable codes, national electric industry practices,
sound engineering judgment, and experience.  The 
    (c)     The  Independent System
Operator shall also adopt standards for reliability, and safety
during periods of emergency and disaster.  The 
    (d)     The  Independent System
Operator shall report to the Oversight Board, at such times as the
Oversight Board may specify, on the development and implementation of
the standards in relation to facilities under the operational
control of the Independent System Operator.  The 
    (e)     The  Independent System
Operator shall require each transmission facility owner or operator
to report annually on its compliance with the standards. That report
shall be made available to the public.