SB 699,
as amended, Hill. Public utilities: electricalbegin delete and gas corporations.end deletebegin insert corporations.end insert
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires the commission to adopt inspection, maintenance, repair, and replacement standards for the distribution systems of electrical corporations in order to provide high-quality, safe, and reliable service. Existing law requires the commission to conduct a review to determine whether the standards have been met and to perform the review after every major outage.
This bill would require thebegin delete commission to adopt rulesend deletebegin insert commission, in a new proceeding, or new phase of an existing proceeding, to commence on or before July 1,
2015, to consider adopting rulesend insert to address security threats to the distribution systems of electricalbegin delete corporations, to be adopted by the commission with inspection, maintenance, repair, and replacement standards no later than July 1, 2015.end deletebegin insert corporations.end insert
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 the provisions of this bill are within the act and require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by expanding the definition of a 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:
The Legislature finds and declares all of the
2following:
3(a) begin deletePhysical or electronic threats end deletebegin insertThreats end insertto the electrical
4distribution system could threaten public health and safety and
5disrupt economic activity in California.
6(b) Ensuring appropriate actions are taken to protect and secure
7vulnerable electrical distribution system assets frombegin delete physical or
threats that could disrupt safe and reliable electric
8electronicend delete
9service, or disrupt essential public services, including safe drinking
10water supplies, are in the public interest.
11(c) Proper planning, in coordination with the appropriate federal
12and state regulatory and law enforcement authorities, will help
13prepare for attacks on the electrical distribution system and thereby
14help reduce the potential consequences of such attacks.
Section 364 of the Public Utilities Code is amended
16to read:
(a) The commission shall adopt inspection, maintenance,
2repair, and replacement standards, andbegin delete adoptend deletebegin insert shall, in a new
3proceeding, or new phase of an existing proceeding, to commence
4on or before July 1, 2015, consider adoptingend insert rules to address
5securitybegin delete threats, forend deletebegin insert threats toend insert the distribution systems of electrical
6begin delete corporations by no later than July 1, 2015. The standards,end delete
7begin insert
corporations. The standards or rules,end insert which shall be performance
8or prescriptivebegin delete standards,end deletebegin insert based,end insert or both, and may be based on risk
9management, as appropriate, for each substantial type of
10distribution equipment or facility, shall provide for high-quality,
11safe, and reliable service.
12(b) In setting itsbegin delete standards,end deletebegin insert standards or rules,end insert
the commission
13shall consider: cost, local geography and weather, applicable codes,
14potential security threats, national electric industry practices, sound
15engineering judgment, and experience. The commission shall also
16adopt standards for operation, reliability, and safety during periods
17of emergency and disaster. The commission shall require each
18
electrical corporation to report annually on its compliance with
19thebegin delete standards. Thatend deletebegin insert standards or rules. Except as provided in
20subdivision (d), thatend insert report shall be made available to the public.
21(c) The commission shall conduct a review to determine whether
22thebegin delete standardsend deletebegin insert standards or rulesend insert prescribed in this section have
23been met. If the commission finds that thebegin delete standardsend deletebegin insert
standards or
24rulesend insert have not been met, the commission may order appropriate
25sanctions, including penalties in the form of rate reductions or
26monetary fines. The review shall be performed after every major
27outage. Any money collected pursuant to this subdivision shall be
28used to offset funding for the California Alternative Rates for
29Energy Program.
30(d) The commission may, consistent with other provisions of
31law, withhold from the public information generated or obtained
32pursuant to this section that it deems would pose a security threat
33to the public if disclosed.
No reimbursement is required by this act pursuant to
35Section 6 of Article XIII B of the California Constitution because
36the only costs that may be incurred by a local agency or school
37district will be incurred because this act creates a new crime or
38infraction, eliminates a crime or infraction, or changes the penalty
39for a crime or infraction, within the meaning of Section 17556 of
40the Government Code, or changes the definition of a crime within
P4 1the meaning of Section 6 of Article XIII B of the California
2Constitution.
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