BILL NUMBER: SB 837 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 12, 2010
AMENDED IN SENATE APRIL 27, 2010
AMENDED IN SENATE APRIL 15, 2010
AMENDED IN SENATE MARCH 25, 2010
INTRODUCED BY Senator Florez
JANUARY 5, 2010
An act to add Title 3.6 (commencing with Section 1883) to
Part 4 of Division 3 of the Civil Code, to amend Section 1985.3
of the Code of Civil Procedure, to amend Section 1326.1 of the Penal
Code, and to add Sections 589, 779.3, 2750, and 2751, and
8364.5 to, to add the heading of Chapter 4.5 (commencing with
Section 2750) to Part 2 of Division 1 of, and to repeal the heading
of Chapter 4.5 (commencing with Section 2771) of Part 2 of Division 1
of, the Public Utilities Code, relating to utility service.
LEGISLATIVE COUNSEL'S DIGEST
SB 837, as amended, Florez. Utility service: disconnection: smart
meters: privacy.
(1) The federal Energy Independence and Security Act of 2007
states that it is the policy of the United States to maintain a
reliable and secure electricity structure that achieves certain
objectives that characterize a smart grid. Existing federal law
requires each state regulatory authority, with respect to each
electric utility for which it has ratemaking authority, and each
nonregulated electric utility, to consider certain standards and to
determine whether or not it is appropriate to implement those
standards to carry out the purposes of the Public Utility Regulatory
Policies Act. The existing standards include time-based metering and
communications, consideration of smart grid investments, and
providing purchases with smart grid information, as specified.
Under existing law, the Public Utilities Commission (CPUC) has
regulatory authority over public utilities, including electrical
corporations and gas corporations, as defined. Existing law requires
the CPUC, by July 1, 2010, and in consultation with the State Energy
Resources Conservation and Development Commission, the Independent
System Operator, and other key stakeholders, to determine the
requirements for a smart grid deployment plan consistent with certain
policies set forth in state and federal law. Existing law requires
that the smart grid improve overall efficiency, reliability, and
cost-effectiveness of electrical system operations, planning, and
maintenance. Existing law requires each electrical corporation, by
July 1, 2011, to develop and submit a smart grid deployment plan to
the commission for approval.
This bill would require the CPUC to ensure that each smart grid
deployment plan authorized by the CPUC after January 1, 2012, include
testing and technology standards, as specified, and ensure that each
metering technology works properly in a field test in a real home
setting.
(2) Existing law prescribes the circumstances under which
telephone and telegraph corporations may release information
regarding residential subscribers without their written consent.
Existing law relative to restructuring of the electrical industry
requires the commission to implement minimum standards relative to
maintaining the confidentiality of residential and small commercial
customer information by electric service providers.
This bill would prohibit an electrical corporation or gas
corporation from sharing, selling, disclosing, or otherwise making
accessible to any third party, without first obtaining the customer's
express written consent, any personally identifiable information
concerning a customer and, upon written request, to inform the
customer of the identity of each person or corporation to whom the
information has been released. The bill would make a violation of
these requirements grounds for a civil suit by the aggrieved customer
against the utility and its employees responsible for the violation.
The bill would require each electrical corporation and gas
corporation to adopt a statement of privacy and security principles
for the personally identifiable information of its customers and to
file that statement with the CPUC, to post the statement on the
utility's Internet Web site, to make the statement available to a
customer, upon request, at no charge, and to disseminate the
statement to customers. The bill would require that an electrical
corporation or gas corporation ensure that any person, other than the
customer or utility, including a contractor, equipment supplier, or
software supplier of the utility, that is permitted to have access to
customer information, is aware of the utility's statement of privacy
and security principles and agrees, pursuant to contract, to act in
a manner that is compatible with the statement of privacy and
security principles.
(3) This bill would require each electrical corporation and gas
corporation, on or before March 1, 2012, and each March 1 thereafter,
to report to the Office of Privacy Protection, certain information
relative to requests for customer's utility records pursuant to
federal warrants, state warrants, grand jury subpoenas, civil
subpoenas, and administrative subpoenas. The bill would require that
the reports be made available to the public via the Internet.
(4) This bill would prohibit individual electrical end-use
customer information, as defined, in the custody of a 3rd-party
demand response service provider, as defined, from being provided to
any other person or corporation by the service provider unless the
customer expressly authorizes, in writing, that the information may
be released to that person or corporation and that person or
corporation acknowledges, in writing, that the information is
confidential and may not be shared, disclosed, made accessible, or
utilized by any other person or corporation without the express
written consent of the customer. The bill would require each
3rd-party demand response service provider to adopt a statement of
privacy and security principles for the data to which it has access
as a result of providing demand response services and a work plan to
implement those principles.
(5) Existing law authorizes the CPUC to fix the rates and charges
for every public utility, and requires that those rates and charges
be just and reasonable. Existing law requires certain notice be given
before an electrical, gas, heat, or water corporation may terminate
residential service for nonpayment of a delinquent account and
prohibits termination of service for nonpayment in certain
circumstances.
This bill would require the CPUC to evaluate the impact of
advanced metering infrastructure technology on the frequency of
energy utility disconnections, adopt policies to minimize any adverse
impacts, and consider requiring electrical corporations and gas
corporations to evaluate their customer communication policies
relative to disconnections of service and share unsuccessful and
successful practices in their creation of best practices. It would
also require the commission to require each electrical corporation
and gas corporation to adopt a mechanism to permit confidential
reporting of system vulnerabilities.
(4)
(6) Existing law relative to civil discovery requires
that a subpoena duces tecum for personal records pertaining to a
consumer be served upon the consumer along with a specified
affidavit. Personal records are defined for this purpose to include
the records of a telephone corporation.
This bill would expand the definition of personal records to
include records of an electrical corporation, gas corporation, or
local publicly owned electric utility.
(5)
(7) Existing law provides that a judge may order the
production of utility records, as defined, only if certain conditions
are met. Existing law does not preclude the holder of the utility
records from notifying a customer of the receipt of the order for
production unless a court orders otherwise.
This bill would instead require a holder of utility records to
notify a customer of the receipt of the order for production unless a
court orders otherwise.
(6)
(8) Under existing law, a violation of the Public
Utilities Act or any order, decision, rule, direction, demand, or
requirement of the commission is a crime.
Because certain of the bill's provisions would be within the act
and because the bill would require action by the commission to
implement certain of its requirements, a violation of these
provisions would impose a state-mandated local program by creating a
new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) Information concerning a utility customer's energy
usage should be treated as confidential by electrical corporations
and gas corporations, and the Legislature finds and declares that
this right of privacy needs further protection in light of the
detailed information on household energy usage that will be available
to electrical corporations and gas corporations after the statewide
deployment of smart meter technology. If electrical corporations
begin to provide other services over wholly owned medium, including
broadband over powerline service, privacy protections need to apply
to these services.
(b) It is the intent of the Legislature that the protections added
by Section 2750 of the Public Utilities Code are in addition to
those protections afforded customers pursuant to Section 394.4 of the
Public Utilities Code.
(c) It is the further intent of the Legislature to enact
additional protections to preserve the confidentiality of household
energy usage information and prevent its access and use by third
parties that provide equipment or software associated with deployment
and operation of the smart grid. A customer has a reasonable
expectation of privacy with respect to their occupancy, movement,
habits, or any other activity in their home that otherwise would not
be visible from outside. Smart appliance systems for the home should
protect a customer's reasonable expectation of privacy in his or her
activities and preferences, and the customer's right to control the
use of energy usage data collected from in-home smart appliances,
in-home sensors, or smart meters, should be protected by limiting a
utility's and other business processor's use of the energy usage
data, and limiting access and use by government and private parties.
(d) Detailed and real-time consumption data held by, or accessible
to, electrical corporations, gas corporations, or third parties
should be available to law enforcement only with a warrant or in
those circumstances when a warrant is unnecessary to conduct a search
of a residence.
SEC. 2. Title 3.6 (commencing with Section 1883)
is added to Part 4 of Division 3 of the Civil Code
, to read:
TITLE 3.6. Confidentiality of Utility Usage Information
1883. (a) For purposes of this title, "third-party demand
response service provider" means a person or corporation that is not
an electrical corporation who collects customer energy usage data or
collects that data and provides equipment, software, or services that
enable end-use electrical customers to reduce their electricity
usage in a given time period, or shift that usage to another time
period, in response to a price signal, a financial incentive, an
environmental condition, or a reliability signal.
(b) For purposes of this title, an authorization, acknowledgment,
or consent is "written" or "in writing" if made by an "electronic
record" that includes a "digital signature" as those terms are
defined in Section 1633.
1883.1. (a) Individual electrical end-use customer information
shall remain confidential. For purposes of this section, "individual
electrical end-use customer information" includes both of the
following:
(1) Electrical usage information about an individual, family,
household, or residence.
(2) Billing and credit information about an individual, family,
household, or residence.
(b) (1) Individual electrical end-use customer information in the
custody of a third-party demand response service provider shall not
be shared, disclosed, or otherwise made accessible to any other
person or corporation by a third-party demand response service
provider unless the customer expressly authorizes, in writing, the
release of that information to that person or corporation and that
person or corporation acknowledges, in writing, that the information
is confidential and shall not be shared, disclosed, made accessible,
or utilized by any other person or corporation without the express
written consent of the customer. Individual electrical end-use
customer information shall not be sold under any circumstances.
(2) A written authorization by an electrical end-use customer for
the release of confidential information shall automatically terminate
three years from the date of the written authorization, and any
renewal shall be in writing.
(3) A third-party demand response service provider shall not offer
or provide any incentive, discount, or other inducement with a
monetary value to a customer to obtain the customer's authorization
to release information pursuant to this subdivision.
(c) (1) (A) Each third-party demand response service provider,
before providing demand response service on customer residences,
shall adopt a statement of privacy and security principles.
(B) The statement of privacy and security principles shall
incorporate each of the following principles of the Fair Information
Practice Principles adopted by the Federal Trade Commission:
(i) Notice/Awareness.
(ii) Choice/Consent.
(iii) Access/Participation.
(iv) Integrity/Security.
(v) Enforcement/Redress.
(C) The statement of privacy and security principles shall
additionally incorporate the principle that maintenance of
information shall be minimized. The third-party demand response
service provider shall collect or retain only that individual
customer information that is directly relevant and necessary to
accomplish a purpose specified in the statement of privacy and
security principles. Individual customer information shall only be
retained for as long as necessary to fulfill the specified purpose.
(2) After adopting privacy and security principles and before
commencing to provide demand response service to customer residences,
the third-party demand response service provider shall adopt a work
plan for implementation of the statement of principles. Information
in the work plan that might be detrimental to the security of the
demand response technology utilized by the third-party demand
response service provider shall be handled in a manner that preserves
the confidentiality of the information.
(3) Upon adoption of the statement of privacy and security
principles, and subsequent adoption of the work plan, the third-party
demand response service provider shall make the statement of
principles available on the third-party demand response service
provider's Internet Web site or supply it to customers in writing or
as an electronic record, as defined in Section 1633. Information that
might be detrimental to the security of the demand response
technology utilized by the third-party demand response service
provider shall be omitted from the information made available on the
Internet Web site or directly supplied to customers. The third-party
demand response service provider shall provide a mechanism for
customers to make inquiries about, or comment upon, the statement of
principles and work plan.
(4) A third-party demand response service provider shall ensure
that any person, other than the customer, including a contractor,
equipment supplier, or software supplier of the third-party demand
response service provider, is aware of the third-party demand
response service provider's statement of privacy and security
principles and agrees to act in a manner that is compatible with the
statement of privacy and security principles.
(5) A third-party demand response service provider shall promptly
investigate and take corrective action to prevent any violation of
the work plan by any employee of the third-party demand response
service provider or any person or corporation that is permitted to
have access to the demand response technology utilized by the
third-party demand response service provider.
(d) This section does not limit the ability of the electrical
end-use customer to directly and voluntarily provide confidential
information to any person or corporation.
SEC. 2. SEC. 3. Section 1985.3 of
the Code of Civil Procedure is amended to read:
1985.3. (a) For purposes of this section, the following
definitions apply:
(1) "Personal records" means the original, any copy of books,
documents, other writings, or electronic data pertaining to a
consumer and which are maintained by any "witness" that is a
physician, dentist, ophthalmologist, optometrist, chiropractor,
physical therapist, acupuncturist, podiatrist, veterinarian,
veterinary hospital, veterinary clinic, pharmacist, pharmacy,
hospital, medical center, clinic, radiology or MRI center, clinical
or diagnostic laboratory, state or national bank, state or federal
association (as defined in Section 5102 of the Financial Code), state
or federal credit union, trust company, anyone authorized by this
state to make or arrange loans that are secured by real property,
security brokerage firm, insurance company, title insurance company,
underwritten title company, escrow agent licensed pursuant to
Division 6 (commencing with Section 17000) of the Financial Code or
exempt from licensure pursuant to Section 17006 of the Financial
Code, attorney, accountant, institution of the Farm Credit System, as
specified in Section 2002 of Title 12 of the United States Code, an
electrical corporation, gas corporation, or telephone corporation
that is a public utility, as defined in Section 216 of the Public
Utilities Code, or a local publicly owned electric utility, as
defined in Section 224.3 of the Public Utilities Code, or
psychotherapist, as defined in Section 1010 of the Evidence Code, or
a private or public preschool, elementary school, secondary school,
or postsecondary school as described in Section 76244 of the
Education Code.
(2) "Consumer" means any individual, partnership of five or fewer
persons, association, or trust which has transacted business with, or
has used the services of, the witness or for whom the witness has
acted as agent or fiduciary.
(3) "Subpoenaing party" means the person or persons causing a
subpoena duces tecum to be issued or served in connection with any
civil action or proceeding pursuant to this code, but shall not
include the state or local agencies described in Section 7465 of the
Government Code, or any entity provided for under Article VI of the
California Constitution in any proceeding maintained before an
adjudicative body of that entity pursuant to Chapter 4 (commencing
with Section 6000) of Division 3 of the Business and Professions
Code.
(4) "Deposition officer" means a person who meets the
qualifications specified in Section 2020.420.
(b) Prior to the date called for in the subpoena duces tecum for
the production of personal records, the subpoenaing party shall serve
or cause to be served on the consumer whose records are being sought
a copy of the subpoena duces tecum, of the affidavit supporting the
issuance of the subpoena, if any, and of the notice described in
subdivision (e), and proof of service as indicated in paragraph (1)
of subdivision (c). This service shall be made as follows:
(1) To the consumer personally, or at his or her last known
address, or in accordance with Chapter 5 (commencing with Section
1010) of Title 14 of Part 3, or, if he or she is a party, to his or
her attorney of record. If the consumer is a minor, service shall be
made on the minor's parent, guardian, conservator, or similar
fiduciary, or if one of them cannot be located with reasonable
diligence, then service shall be made on any person having the care
or control of the minor or with whom the minor resides or by whom the
minor is employed, and on the minor if the minor is at least 12
years of age.
(2) Not less than 10 days prior to the date for production
specified in the subpoena duces tecum, plus the additional time
provided by Section 1013 if service is by mail.
(3) At least five days prior to service upon the custodian of the
records, plus the additional time provided by Section 1013 if service
is by mail.
(c) Prior to the production of the records, the subpoenaing party
shall do either of the following:
(1) Serve or cause to be served upon the witness a proof of
personal service or of service by mail attesting to compliance with
subdivision (b).
(2) Furnish the witness a written authorization to release the
records signed by the consumer or by his or her attorney of record.
The witness may presume that any attorney purporting to sign the
authorization on behalf of the consumer acted with the consent of the
consumer, and that any objection to release of records is waived.
(d) A subpoena duces tecum for the production of personal records
shall be served in sufficient time to allow the witness a reasonable
time, as provided in Section 2020.410, to locate and produce the
records or copies thereof.
(e) Every copy of the subpoena duces tecum and affidavit, if any,
served on a consumer or his or her attorney in accordance with
subdivision (b) shall be accompanied by a notice, in a typeface
designed to call attention to the notice, indicating that (1) records
about the consumer are being sought from the witness named on the
subpoena; (2) if the consumer objects to the witness furnishing the
records to the party seeking the records, the consumer must file
papers with the court or serve a written objection as provided in
subdivision (g) prior to the date specified for production on the
subpoena; and (3) if the party who is seeking the records will not
agree in writing to cancel or limit the subpoena, an attorney should
be consulted about the consumer's interest in protecting his or her
rights of privacy. If a notice of taking of deposition is also
served, that other notice may be set forth in a single document with
the notice required by this subdivision.
(f) A subpoena duces tecum for personal records maintained by a
telephone corporation that is a public utility, as defined in Section
216 of the Public Utilities Code, shall not be valid or effective
unless it includes a consent to release, signed by the consumer whose
records are requested, as required by Section 2891 of the Public
Utilities Code.
(g) Any consumer whose personal records are sought by a subpoena
duces tecum and who is a party to the civil action in which this
subpoena duces tecum is served may, prior to the date for production,
bring a motion under Section 1987.1 to quash or modify the subpoena
duces tecum. Notice of the bringing of that motion shall be given to
the witness and deposition officer at least five days prior to
production. The failure to provide notice to the deposition officer
shall not invalidate the motion to quash or modify the subpoena duces
tecum but may be raised by the deposition officer as an affirmative
defense in any action for liability for improper release of records.
Any other consumer or nonparty whose personal records are sought
by a subpoena duces tecum may, prior to the date of production, serve
on the subpoenaing party, the witness, and the deposition officer, a
written objection that cites the specific grounds on which
production of the personal records should be prohibited.
A witness or deposition officer shall not be required to produce
personal records after receipt of notice that the motion has been
brought by a consumer, or after receipt of a written objection from a
nonparty consumer, except upon order of the court in which the
action is pending or by agreement of the parties, witnesses, and
consumers affected.
The party requesting a consumer's personal records may bring a
motion under Section 1987.1 to enforce the subpoena within 20 days of
service of the written objection. The motion shall be accompanied by
a declaration showing a reasonable and good faith attempt at
informal resolution of the dispute between the party requesting the
personal records and the consumer or the consumer's attorney.
(h) Upon good cause shown and provided that the rights of
witnesses and consumers are preserved, a subpoenaing party shall be
entitled to obtain an order shortening the time for service of a
subpoena duces tecum or waiving the requirements of subdivision (b)
where due diligence by the subpoenaing party has been shown.
(i) This section shall not be construed to apply to any subpoena
duces tecum that does not request the records of any particular
consumer or consumers and that requires a custodian of records to
delete all information that would in any way identify any consumer
whose records are to be produced.
(j) This section shall not apply to proceedings conducted under
Division 1 (commencing with Section 50), Division 4 (commencing with
Section 3200), Division 4.5 (commencing with Section 6100), or
Division 4.7 (commencing with Section 6200), of the Labor Code.
(k) Failure to comply with this section shall be sufficient basis
for the witness to refuse to produce the personal records sought by a
subpoena duces tecum.
(l) If the subpoenaing party is the consumer, and the consumer is
the only subject of the subpoenaed records, notice to the consumer,
and delivery of the other documents specified in subdivision (b) to
the consumer, is not required under this section.
SEC. 3. SEC. 4. Section 1326.1 of
the Penal Code is amended to read:
1326.1. (a) An order for the production of utility records in
whatever form and however stored shall be issued by a judge only upon
a written ex parte application by a peace officer showing specific
and articulable facts that there are reasonable grounds to believe
that the records or information sought are relevant and material to
an ongoing investigation of a felony violation of Section 186.10 or
of any felony subject to the enhancement set forth in Section 186.11.
The ex parte application shall specify with particularity the
records to be produced, which shall be only those of the individual
or individuals who are the subject of the criminal investigation. The
ex parte application and any subsequent judicial order shall be open
to the public as a judicial record unless ordered sealed by the
court, for a period of 60 days. The sealing of these records may be
extended for 60-day periods upon a showing to the court that it is
necessary for the continuance of the investigation. Sixty-day
extensions may continue for up to one year or until termination of
the investigation of the individual or individuals, whichever is
sooner. The records ordered to be produced shall be returned to the
peace officer applicant or his or her designee within a reasonable
time period after service of the order upon the holder of the utility
records.
(b) As used in subdivision (a), "utility records" include, but are
not limited to, subscriber information, telephone or pager number
information, toll call records, call detail records, automated
message accounting records, billing statements, payment records, and
applications for service in the custody of companies engaged in the
business of providing telephone, pager, electric, gas, propane,
water, or other like services. "Utility records" do not include the
installation of, or the data collected from the installation of pen
registers or trap-tracers, nor the contents of a wire or electronic
communication.
(c) The holder of the utility records shall notify a customer of
the receipt of the order for production of records unless a court
orders the holder of the utility records to withhold notification to
the customer upon a finding that this notice would impede the
investigation. Where a court has made an order to withhold
notification to the customer under this subdivision, the order shall
include a statement of the facts as to why providing notice would
impede the investigation and the peace officer or law enforcement
agency who obtained the utility records shall notify the customer by
delivering a copy of the ex parte order to the customer within 10
days of the termination of the investigation.
(d) A holder of utility records, or an officer, employee, or agent
thereof, shall not be liable to any person for (1) disclosing
information in response to an order pursuant to this section, or (2)
complying with an order under this section not to disclose to the
customer, the order or the dissemination of information pursuant to
the order.
(e) This section shall not preclude the holder of the utility
records from voluntarily disclosing information or providing records
to law enforcement upon request.
(f) Utility records released pursuant to this section shall be
used only for the purpose of criminal investigations and
prosecutions.
SEC. 4. SEC. 5. Section 589 is added
to the Public Utilities Code, to read:
589. (a) On or before March 1, 2012, and each March 1 thereafter,
each electrical corporation and gas corporation shall report all of
the following to the Office of Privacy Protection created pursuant to
Section 11549.5 of the Government Code:
(1) The number of federal warrants, state warrants, grand jury
subpoenas, civil subpoenas, and administrative subpoenas received by
the utility during the prior calendar year for information pertaining
to a California consumer of the utility's services.
(2) The number and types of actions taken by the utility in
response to each category of information request listed in paragraph
(1).
(3) The number of customers whose utility records were produced in
response to each category of information request listed in paragraph
(1).
(4) The type of information disclosed about the utility's
customers in response to each category of information request listed
in paragraph (1).
(5) The total amount of money received by the utility to respond
to each category of information request in paragraph (1).
(b) Information need not be disclosed pursuant to subdivision (a)
where prohibited by some other law. If the utility does not disclose
information pursuant to this subdivision, it shall include a
statement in the report as to the basis for the withholding of that
information.
(c) On or before June 1, 2012, and each June 1 thereafter, each
public utility shall make the report prepared pursuant to subdivision
(a) available on the utility's Internet Web site and shall provide
an electronic version of the report to the Office of Privacy
Protection.
(d) On or before July 1, 2012, and each July 1 thereafter, the
Office of Privacy Protection shall make a copy of each utility report
furnished to the office pursuant to this section available on the
office's Internet Web site in a manner that will allow the public to
conduct online searches for information contained in the reports.
SEC. 6. Section 779.3 is added to the
Public Utilities Code , to read:
779.3. The Legislature finds and declares that, due to the
importance of having electrical service to one's residence, the issue
of utility service disconnections requires careful scrutiny by the
commission. The commission shall evaluate the impact of advanced
metering infrastructure technology on the frequency of energy utility
disconnections and adopt policies to minimize any adverse impacts.
The commission shall also consider requiring electrical corporations
and gas corporations to evaluate their customer communication
policies relative to disconnections of service and share unsuccessful
and successful practices in their creation of best practices.
SEC. 5. SEC. 7. Section 2750 is
added to the Public Utilities Code, to read:
2750. (a) An electrical corporation or gas corporation shall not
share, sell, disclose, or otherwise make accessible to any third
party, without first obtaining the customer's express written
consent, any personally identifiable information concerning a
customer including, but not limited to, the following:
(1) The customer's personal billing or credit information, or
electrical or gas usage data.
(2) The customer's credit or other personal financial information,
except when the corporation is ordered by the commission to provide
this information.
(3) The services that the customer purchases, enrolls in, or
subscribes to, from the utility or from independent services that use
the electrical or gas consumption data to provide a related service
to the customer.
(4) Demographic information about individual customers, or
aggregate information from which individual identities and
characteristics have not been removed.
(b) A customer who gives his or her written consent for the
release of one or more of the categories of personally identifiable
information in subdivision (a) shall be informed by the electrical
corporation or gas corporation of the identity of each person or
corporation to whom the information has been released, upon written
request.
(c) (1) A customer who, pursuant to subdivision (b), has given
written consent for the release of one or more of the categories of
personally identifiable information in subdivision (a), may rescind
this consent upon submission of a written notice to the electrical
corporation or gas corporation.
(2) An electrical corporation or gas corporation shall cease to
make available any personal information about the customer, within 30
days following receipt of notice pursuant to paragraph (1).
(3) If a customer voluntarily terminates service with an
electrical corporation or gas corporation, any prior consent for the
release of personally identifiable information shall also terminate.
(d) This section does not apply to any of the following:
(1) General information regarding the usage, load shape, or other
characteristics of a group or rate classification, unless the release
of that information would reveal customer specific information
because of the size of the group, rate classification, or nature of
the information.
(2) Information provided under supervision of the commission to a
collection agency by the electrical corporation or gas corporation
exclusively for the collection of unpaid debts.
(3)
Information provided to an emergency service agency responding to a
911 telephone call or any other call communicating an imminent threat
to life or property.
(4) Information provided to a law enforcement agency in response
to lawful process.
(5) Information that is required by the commission pursuant to its
jurisdiction and control over electrical corporations and gas
corporations.
(6) Information required to be provided by the electrical
corporation or gas corporation pursuant to rules and orders of the
commission or the Federal Energy Regulatory Commission.
(7) The name and address of the customers of an electrical
corporation or gas corporation who are enrolled in the California
Alternative Rates for Energy or CARE program provided by that utility
for the sole purpose of low-income ratepayer assistance outreach
efforts.
(8) Information provided in response to a request pursuant to
subdivision (a) of Section 530.8 of the Penal Code.
(e) An electrical corporation or gas corporation shall not offer
or provide any incentive, discount, or other inducement with a
monetary value, to a customer to obtain the customer's authorization
to release information pursuant to this section.
(f) For purposes of this section, an authorization,
acknowledgment, or consent is written or in writing if made by an
"electronic record" that includes a "digital signature," as those
terms are defined in Section 1633 of the Civil Code.
(g) Each electrical corporation and gas corporation shall adopt a
mechanism for members of the public to anonymously report system
vulnerabilities.
(g)
(h) Each violation of this section is grounds for a
civil suit by the aggrieved customer against the electrical
corporation or gas corporation and its employees responsible for the
violation.
SEC. 6. SEC. 8. Section 2751 is
added to the Public Utilities Code, to read:
2751. (a) On or before July 1, 2011, each electrical corporation
and gas corporation shall adopt a statement of privacy and security
principles for the personally identifiable information of its
customers which shall be filed with the commission, posted on the
utility's Internet Web site, made available to a customer upon
request at no charge, and disseminated to customers. The statement of
privacy and security principles shall provide customers with
meaningful, clear, and full notice regarding the collection, use,
dissemination, and maintenance of the personally identifiable
information of its customers.
(b) The statement of privacy and security principles shall
incorporate each of the following principles of the Fair Information
Practice Principles adopted by the Federal Trade Commission:
(1) Notice/Awareness.
(2) Choice/Consent.
(3) Access/Participation.
(4) Integrity/Security.
(5) Enforcement/Redress.
(c) An electrical corporation or gas corporation shall ensure that
any person, other than the customer or corporation, including a
contractor, equipment supplier, or software supplier of the utility,
that is permitted to have access to customer information pursuant to
Section 2750, is aware of the utility's statement of privacy and
security principles and agrees, pursuant to contract, to act in a
manner that is compatible with the statement of privacy and security
principles.
SEC. 7. SEC. 9. The heading of
Chapter 4.5 (commencing with Section 2750) is added to Part 2 of
Division 1 of the Public Utilities Code, to read:
CHAPTER 4.5. ELECTRICAL CORPORATIONS AND GAS CORPORATIONS
SEC. 8. SEC. 10. The heading of
Chapter 4.5 (commencing with Section 2771) of Part 2 of Division 1 of
the Public Utilities Code is repealed.
SEC. 9. SEC. 11. Section 8364.5 is
added to the Public Utilities Code, to read:
8364.5. (a) The commission shall ensure that each smart grid
deployment plan authorized by the commission after January 1, 2012,
includes testing and technology standards.
(b) Testing standards shall include all of the following:
(1) A requirement that the smart metering technology have a
comprehensive security audit. The security auditing plan and the
results of the security audit shall be made publicly available upon
approval by the commission.
(2) A requirement that the manufacturer disclose whether it
created a cryptographic protocol for data encryption and specify the
protocol used.
(3) A requirement that the manufacturer submit security audit
results as part of a direct access meter project self-certification
program.
(c) Technology standards shall do both of the following:
(1) Ensure that the particular smart metering technology is
compatible with other smart technologies.
(2) Ensure that the particular smart metering technology is
compatible with the electrical corporation's energy usage data
collection and billing system.
(d) The commission shall ensure that each metering technology
works properly in a field test in a real home setting.
SEC. 10. SEC. 12. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.