BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  SB 1409
                                                                  Page A
          SENATE THIRD READING
          SB 1409 (Hill)
          As Amended  August 21, 2014
          Majority vote

           SENATE VOTE  :36-0  
           
           UTILITIES & COMMERCE             14-0                
          APPROPRIATIONS      17-0        
           
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          |Ayes:|Bradford, Patterson,      |Ayes:|Gatto, Bigelow,           |
          |     |Bonilla, Buchanan,        |     |Bocanegra, Bradford, Ian  |
          |     |Ch�vez, Dahle, Fong, Beth |     |Calderon, Campos,         |
          |     |Gaines, Garcia,           |     |Donnelly, Eggman, Gomez,  |
          |     |Roger Hern�ndez, Jones,   |     |Holden, Jones, Linder,    |
          |     |Mullin, Quirk, Rendon     |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Lowenthal                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the California Public Utilities Commission  
          (PUC) to publish an annual report that includes descriptions of  
          investigations into gas or electric safety incidents reported by  
          any gas or electric corporations, and requires the PUC to  
          publish in its annual workplan a summary of these  
          investigations, including those that remain open, along with a  
          link to an Internet Web site containing the annual safety  
          investigation report. Specifically  this bill  :

          1)Directs the PUC to publish its annual safety investigation  
            report beginning February 1, 2016, and requires the report to:

             a)   Succinctly describe each safety investigation concluded  
               during the prior calendar year, along with each  
               investigation that remains open.

             b)   Include the month of the incident, the reason for the  
               investigation, the facility type involved, and the owner of  
               the facility.

          2)Requires the PUC, in its annual work plan, to include:

             a)   A summary of staff safety investigations concluded  









                                                                  SB 1409
                                                                  Page B
               during the prior calendar year.

             b)   Staff safety investigations that remain open for any gas  
               corporation or electrical corporation.

             c)   A link to the Internet Web site containing the annual  
               gas and electric safety report.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor, if any, additional state costs.

           COMMENTS  :   

          1)Author's statement:  "An annual reporting requirement will  
            raise the profile of accident investigations with CPUC  
            management and the public and will be consistent with the  
            CPUC's focus on transparency in safety matters."

          2)PUC safety investigations.  Safety investigations serve  
            various purposes.  They a) help utilities, PUC staff, and the  
            public learn from accidents and prevent future accidents; b)  
            serve as a prerequisite for PUC enforcement actions; and c)  
            guide decisions related to whether claims against utilities  
            are an expense recoverable in future rates.

            The PUC has issued several orders related to safety  
            investigations, but even with these rules in place,  
            information surrounding safety investigations is not always  
            available.  According to the PUC's 2009 (and regrettably, most  
            recent) Electric, Natural Gas, and Propane Safety Report, the  
            PUC received 82 reports related to natural gas incidents and  
            93 related to electric incidents in 2009.<1>  A typical  
            timetable for investigations is not outlined, thus it is  
            unclear whether incidents occurring in 2009 have been fully  
            investigated.  Furthermore, the number of incidents occurring  
            since 2009 is unknown. 

            Safety investigations are initially conducted by PUC staff,  
            and if deemed necessary, the commission may open a formal  
            proceeding (an order instituting investigation - OII) to  
            further investigate the incident.  OIIs are outlined in the  
            PUC's annual workplan, but the open staff safety  

            --------------------------
          <1>  
           http://www.cpuc.ca.gov/NR/rdonlyres/BDDBF3F2-8BE0-4C70-8D25-7987A 
          CF3E7CD/0/2009USRBANNUALREPORT.pdf  








                                                                  SB 1409
                                                                 Page C
            investigations are not.  This bill seeks to require inclusion  
            and descriptions of open PUC staff safety investigations in  
            the annual workplan.

          3)PUC rulemaking on safety enforcement.  As per SB 291 (Hill),  
            Chapter 601, Statutes of 2013, the PUC has opened a proceeding  
            to implement an electric safety enforcement program by January  
            1, 2015, and a gas safety enforcement program by July 1,  
            2014.<2>


           Analysis Prepared by  :    Brandon Gaytan / U. & C. / (916)  
          319-2083 


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          ---------------------------
          <2>  
           http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M091/K638/91 
          638006.PDF