BILL NUMBER: SB 655 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 20, 2009
AMENDED IN SENATE APRIL 29, 2009
INTRODUCED BY Senator Padilla
FEBRUARY 27, 2009
An act to amend Sections 345.5 and 348
Section 345.5 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 655, as amended, Padilla. Independent System Operator:
transmission facilities.
(1) The
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. The operator is also
required to consult and coordinate with state and local agencies to
ensure that the operator operates in furtherance of state laws
regarding consumer and environmental protection.
This bill would require the Independent System Operator
to support and assist in implementing specify that
those state laws regarding consumer and environmental protection
include, but are not limited to, the California Renewables
Portfolio Standard Program and greenhouse gas emission
reduction laws and regulations the California Global
Warming Solutions Act of 2006 .
(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.
The bill would require the operator to appear annually before
appropriate policy committees of the Legislature to report on the
operator's activities. The bill also would declare legislative intent
that the operator ensure that the transmission grid is secure from
unauthorized intrusion.
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.
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) 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) 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.
(2) Reducing, to the extent possible, overall economic cost to the
state's consumers.
(3) Supporting and assisting in implementation and compliance with
the California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11)).
(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).
(5)
(3) 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 , including, but not limited to, the California
Renewables Portfolio Standard Program (Article 16 (commencing with
Section 399.11)) and the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the Health and
Safety Code) .
(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.
(5) Appear annually before the appropriate policy committees of
the Senate and the Assembly to report on the Independent System
Operator's activities.
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.
(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.
(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.
(c) The Independent System Operator shall also adopt standards for
reliability, and safety during periods of emergency and disaster.
(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.
(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.