BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1437|
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VETO
Bill No: SB 1437
Author: Kehoe (D)
Amended: 6/7/10
Vote: 21
SENATE FLOOR : Not relevant
SENATE ENERGY, U.&C. COMMITTEE : 9-0, 8/20/10
AYES: Padilla, Dutton, Corbett, DeSaulnier, Emmerson,
Kehoe, Lowenthal, Strickland, Wright
NO VOTE RECORDED: Florez, Simitian
ASSEMBLY FLOOR : 74-0, 8/18/10 - See last page for vote
SENATE FLOOR : 34-0, 8/26/10 (Consent)
AYES: Aanestad, Alquist, Ashburn, Blakeslee, Calderon,
Cedillo, Cogdill, Corbett, Correa, DeSaulnier, Ducheny,
Dutton, Emmerson, Hancock, Harman, Hollingsworth, Huff,
Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Padilla,
Pavley, Price, Romero, Runner, Simitian, Steinberg,
Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Denham, Florez, Oropeza, Strickland,
Wiggins, Vacancy
SUBJECT : Independent System Operator: activities report
SOURCE : Author
DIGEST : Assembly Amendments delete the Senate version
relating to electricity vehicles.
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SB 1437
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This bill now requires a representative of the California
Independent System Operator to annually appear before the
appropriate policy committees of the Senate and Assembly.
ANALYSIS : Existing law establishes the California
Independent System Operator (CAISO) as a nonprofit, public
benefit corporation to ensure the efficient use and
reliable operation of the transmission grid, and mandates
CAISO is overseen by a five-member Board of Governors who
are appointed by the Governor and confirmed by the state
Senate.
This bill:
1. Requires the independent governing board of directors to
annually select a representative of CAISO to appear
before the appropriate policy committees of the Senate
and Assembly to report on the activities of CAISO.
2. Requires the representative of CAISO to annually report
on the following:
A. A summary of actions undertaken by CAISO to
ensure reliability of electric service and the
health and safety of the public by managing the
transmission system and related energy markets.
B. A summary of those actions undertaken by CAISO
relative to the adoption or modification of
performance or prescriptive standards for
transmission equipment or facility.
C. The results of each review of major outage
undertaken by CAISO.
Comments
CAISO was created in the bill that deregulated the
wholesale and retail electricity markets, (AB 1890 [Brulte]
Chapter 854, Statutes of 1996), to ensure fair and open
transmission access by all electricity providers. (The
investor-owned utilities still own and maintain the grid,
however, operation of the grid was transferred to CAISO.)
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CAISO is required to operate the grid consistent with
Western Electricity Coordinating Council (WECC), which is
the western regional subgroup of the North American
Electric Reliability Corporation (NERC). NERC is the
federally designated Electric Reliability Organization.
CAISO is governed by tariffs submitted to and approved by
the Federal Energy Regulatory Commission.
CAISO plays an important role in implementing California's
landmark policies. AB 32 (Nunez) Chapter 488, Statutes of
2006, requires the California Air Resources Board (ARB) to
adopt a statewide greenhouse gas emissions limit equivalent
to the statewide greenhouse gas emissions levels in 1990 to
be achieved by 2020. In 2008, ARB began to develop a plan
for how California, including the power sector, would
reduce emissions through direct regulation, such as end-use
energy efficiency standards and renewables portfolio
standards, and through a cap-and-trade system.
Shortly after midnight on April 1, 2010, about 300,000
homes and businesses in the San Diego area lost power for
about 45 minutes. The CAISO performed an investigation, it
found that control room personnel made an error. CAISO has
taken personnel measures and steps to prevent a repeat,
including additional training and audible alarms that tell
grid operators when an area is getting close to not having
enough power to operate. CAISO investigation was reviewed
by WECC. WECC found the investigation and subsequent
remedies appropriate and no further actions were requested.
The author and the Utility Consumers' Action Network (UCAN)
are concerned that CAISO investigation is lacking and
believe that the public has a right to know exactly what
happened and what steps have been taken since the outage to
protect California from future outages. In a letter to
UCAN dated April 27, 2010, CAISO states that it is
cooperating fully with WECC's review of the event, and is
fully briefing state and federal regulatory agencies. Upon
the completion of CAISO's review, a public report will be
issued.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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SB 1437
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GOVERNOR'S VETO MESSAGE :
"I am returning Senate Bill 1437 without my
signature.
This bill requires a representative from the
California Independent System Operator (ISO) to
appear before the appropriate policy committee of the
Senate and Assembly to report on the previous year's
ISO activities.
Similar to SB 1467 (Padilla), this bill is
unnecessary. Having dealt with the ISO throughout
the duration of my Administration, I have always
found them to be accessible and accommodating.
Whenever I have called and asked to meet, they have
responded quickly. I am certain they would do the
same for the Legislature.
Additionally, as an independent not-for-profit entity
established under the rules of the Federal Energy
Regulatory Commission, it is questionable whether
state law can compel them to appear before the
Legislature anyway.
For these reasons, I am unable to sign this bill."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore, Eng,
Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey,
Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,
Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza, Miller,
Monning, Nava, Nestande, Niello, Nielsen, Norby, V.
Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, John
A. Perez
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NO VOTE RECORDED: Blakeslee, Charles Calderon, Evans,
Knight, Logue, Vacancy
DLW:do 10/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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