SB 699, as amended, Hill. Public utilities: electrical corporations.
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 the commission, in a new proceeding, or new phase of an existing proceeding, to commence on or before July 1, 2015, to consider adopting rules to addressbegin delete security threatsend deletebegin insert
physical security risksend insert to the distribution systems of electrical corporations.
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 deleteThreats end deletebegin insertPhysical threats end insertto the electrical distribution system
4begin delete could threatenend deletebegin insert present risks toend insert public health and safety andbegin insert couldend insert
5 disrupt economic
activity in California.
6(b) Ensuring appropriate actions are taken to protect and secure
7vulnerable electrical distribution system assets frombegin insert physicalend insert
8
threats that could disrupt safe and reliable electric service, or
9disrupt essential public services, including safe drinking water
10supplies, 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,
18repair, and replacement standards, and shall, in a new proceeding,
19or new phase of an existing proceeding, to commence on or before
P3 1July 1, 2015, consider adopting rules to addressbegin delete security threatsend delete
2begin insert the physical security risksend insert to the distribution systems of electrical
3
corporations. The standards or rules, which shall bebegin delete performance begin insert prescriptive or performance-based,end insert or both,
4or prescriptive based,end delete
5and may be based on risk management, as appropriate, for each
6substantial type of distribution equipment or facility, shall provide
7for high-quality, safe, and reliable service.
8(b) In setting its standards or rules, the commission shall
9consider: cost, local geography and weather, applicable codes,
10potentialbegin delete security threats,end deletebegin insert physical security risks,end insert national
electric
11industry practices, sound engineering judgment, and experience.
12The commission shall also adopt standards for operation, reliability,
13and safety during periods of emergency and disaster. The
14commission shall require each
electrical corporation to report
15annually on its compliance with the standards or rules. Except as
16provided in subdivision (d), that report shall be made available to
17the public.
18(c) The commission shall conduct a review to determine whether
19the standards or rules prescribed in this section have been met. If
20the commission finds that the standards or rules have not been
21met, the commission may order appropriate sanctions, including
22penalties in the form of rate reductions or monetary fines. The
23review shall be performed after every major outage. Any money
24collected pursuant to this subdivision shall be used to offset funding
25for the California Alternative Rates for Energy Program.
26(d) The commission may, consistent with other provisions of
27law, withhold from
the public information generated or obtained
28pursuant to this section that it deems would pose a security threat
29to the public if disclosed.
No reimbursement is required by this act pursuant to
31Section 6 of Article XIII B of the California Constitution because
32the only costs that may be incurred by a local agency or school
33district will be incurred because this act creates a new crime or
34infraction, eliminates a crime or infraction, or changes the penalty
35for a crime or infraction, within the meaning of Section 17556 of
36the Government Code, or changes the definition of a crime within
37the meaning of Section 6 of Article XIII B of the California
38Constitution.
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