BILL NUMBER: ABX2 28 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 21, 2001
INTRODUCED BY Assembly Members Migden, Oropeza, and Diaz
(Coauthor: Assembly Member Cohn)
MAY 17, 2001
An act to amend Section 335 of, and to add Section 342
Sections 341.6, 342, and 342.5 to, the Public
Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 28, as amended, Migden. Electrical restructuring: Oversight
Board: Independent System Operator.
(1) The existing restructuring of the electrical services industry
within the Public Utilities Act provides for the establishment of an
Independent System Operator and a Power Exchange as separately
incorporated public benefit , nonprofit
corporations. An Electricity Oversight Board (Oversight Board) is
also established to oversee the Independent System Operator and the
Power Exchange in order to ensure the success of electric industry
restructuring and to ensure a reliable supply of electricity in the
transition to a new market structure. The Oversight Board is granted
various powers in order to carry out these purposes.
This bill would expand the authority of the Oversight Board to act
on any matters made subject to the approval or determination by the
Oversight Board under law, and to investigate any matter and
otherwise act consistent with these provisions to ensure that the
interests of California's citizens and consumers are served,
protected, and represented in relation to the electric transmission
grid and generation system and related costs , including
provisions for the production of information .
The bill would require that electric generation and transmission
facilities be subject to various prescribed availability standards.
The bill would require the Independent System Operator to
annually prepare and submit to the Oversight Board
a proposed protocol , in consultation with the
Independent System Operator, to prepare and adopt protocols for
the scheduling of transmission and generation equipment outages for
the purpose of maintenance, repair, or upgrade , that is
required to be reviewed, approved or revised by the Oversight Board
after notice and public hearing. The bill would require the
Independent System Operator to utilize the approved protocol for the
purpose of scheduling maintenance or other planned outages of
equipment and to submit a coordinated outage plan to the Oversight
Board and to prepare and adopt a schedule of outages
in accordance with those protocols . The bill would require
the Oversight Board to direct the Independent System
Operator to develop and submit to the board and the commission
proposed generation facility maintenance criteria for
approval by the Oversight Board after notice and public hearing
, operating, and availability standards . The
bill would require the Independent System Operator to
maintain records of generation facility outages and provide those
records to the Oversight Board on a daily basis
authorize the commission to adopt those standards and ensure
compliance with those standards . The bill would require
entities that own or operate certain electric generating facilities
to provide reports on a monthly basis to the Oversight Board
Independent System Operator that identify any
periods the facilities were unavailable to produce electricity or
were available at reduced capacity. The bill would require the
Independent System Operator to transmit that information to the
Oversight Board and the commission. The bill would
authorize the Independent System Operator and the Oversight Board to
engage in audits or inspection of facilities that fail to comply with
procedures, criteria, or standards established pursuant to these
provisions. The bill would require owners or operators of generation
or transmission facilities to provide the Independent System
Operator and the Oversight Board with information and access to the
facilities as necessary to accomplish reasonable audits and
inspections.
The bill would also impose certain requirements on electrical
corporations having contracts with certain qualifying facilities or
cogeneration facilities. The bill would require a report of the
operational status and availability of the facility to be provided to
the Oversight Board on a daily basis. The bill would
authorize the Oversight Board to assess a monetary penalty against
an owner or operator of a facility found to have failed to comply
with criteria, standards, or procedures established pursuant to these
provisions. Since provide for the assessment of
penalties by the commission for violations of these provisions.
Because a violation of the Public Utilities Act is a crime
under existing provisions of law, the bill would create a
state-mandated local program by expanding the definition of a crime.
The bill would impose various duties on local publicly owned
electric utilities relative to maintenance of generation and
transmission facilities, and reporting of actual planned and
nonplanned outages of facilities, thereby imposing a state-mandated
local program.
(2) 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. 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, including the
creation of a State Mandates Claims Fund to pay the costs of mandates
that do not exceed $1,000,000 statewide and other procedures for
claims whose statewide costs exceed $1,000,000.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
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. Section 335 of the Public Utilities Code is amended to
read:
335. In order to ensure that the interests of the people of
California are served, a five-member Electricity Oversight Board is
hereby created as provided in Section 336. For purposes of this
chapter, any reference to the Oversight Board shall mean the
Electricity Oversight Board. Its functions shall be all of the
following:
(a) To oversee the Independent System Operator and the Power
Exchange.
(b) (1) To exercise the exclusive right to decline to confirm the
appointments of members of the governing board of the Independent
System Operator.
(2) To determine the composition and terms of service and to
exercise the exclusive right to decline to confirm the appointments
of specific members of the governing board of the Power Exchange.
(c) To serve as an appeal board for majority decisions of the
Independent System Operator governing board, as they relate to
matters subject to exclusive state jurisdiction, as specified in
Section 339.
(d) Those members of the Power Exchange governing board whose
appointments the Oversight Board has the exclusive right to decline
to confirm include proposed governing board members representing
agricultural end users, industrial end users, commercial end users,
residential end users, end users at large, nonmarket participants,
and public interest groups.
(e) To act on any matters made subject to approval or
determination by the Oversight Board under law.
(f) To investigate any matter and otherwise act consistent with
this chapter to ensure that the interests of California's citizens
and consumers are served, protected, and represented in relation to
the electric transmission grid and generation system and related
costs.
SEC. 2. Section 341.6 is added to the Public Utilities Code,
to read:
341.6. (a) With the consent of the Oversight Board, an authorized
officer of the Oversight Board may direct the inspection or
production of records, data, accounts, books, or documents of the
Independent System Operator or the Power Exchange that are reasonably
related to the public interest of the people of California,
including, but not limited to, the reliability, availability, and
cost of electric service to California consumers.
(b) With the consent of the Oversight Board, an authorized officer
of the Oversight Board may direct the production of information from
an entity that owns or operates generation or transmission
facilities located in California or that engages in the sale of
electricity in California, related to the reliability, availability,
or cost of electric service to California consumers.
(c) An entity providing information to the Oversight Board may
request confidential treatment for specific information that it
provides, which request shall be made at the time the request for
information is received. The request for confidentiality shall
specifically identify the information for which confidentiality is
sought and the justification for that treatment. No information
submitted under a request for confidentiality shall be open to public
inspection or made public except pursuant to an order of the
Oversight Board finding that confidential treatment is not warranted,
which order shall be made after notice and opportunity for hearing.
The Oversight Board may adopt orders governing the handling of
information as appropriate to protect legitimate confidentiality.
(d) The Oversight Board may direct the Independent System Operator
to report to the Oversight Board on those matters and at those times
as the Oversight Board determines are necessary and appropriate to
the exercise of its public oversight duties.
SEC. 3. Section 342 is added to the Public Utilities Code,
to read:
342. (a) The Legislature finds and declares that electric
generation and transmission facilities are critical infrastructure
and their predictable availability is essential to the public
welfare.
(b) Electric generation and transmission facilities shall be
subject to availability standards standards
related to their availability , in accordance with this
section.
(c) Owners or operators of electric generating facilities in the
State of California shall comply with all protocols and
standards approved or established pursuant to this chapter.
(d) The Independent System Operator shall prepare and submit to
the Oversight Board, a proposed protocol for the scheduling of
transmission and generation equipment outages for the purposes of
maintenance, repair, or upgrade. The Independent System Operator
shall resubmit this protocol, including any proposed revisions of the
protocol, at least annually. The Oversight Board shall review and
approve or direct revision of the proposed protocol as it determines
is appropriate and necessary to protect the public interest after
notice and public hearing. The Independent System Operator shall
utilize an approved protocol for the purpose of scheduling
maintenance or other planned outages of equipment including the
preparation of a coordinated outage plan. The Independent System
Operator shall prepare and submit to the Oversight Board, a
coordinated outage plan that shall be updated not less than once each
quarter.
(e) The Independent System Operator shall develop and submit to
the Oversight Board proposed generation facility maintenance
criteria. The Oversight Board shall review the proposed generation
maintenance criteria and approve or direct revision of the criteria
as it determines necessary to protect the public interest after
notice and public hearing.
(f)
(d) On or before March 1, 2002, the Oversight Board, in
consultation with the Independent System Operator, shall prepare and
adopt protocols for the scheduling of transmission and generation
equipment outages for the purposes of maintenance, repair, or
upgrade.
(e) The Oversight Board, in consultation with the Independent
System Operator, shall prepare and adopt a schedule of transmission
and generation equipment outages according to the protocols adopted
pursuant to subdivision (d).
(f) The Oversight Board shall direct the Independent System
Operator to develop and submit to the Oversight Board and the
commission proposed generation facility maintenance, operating, and
availability standards. The Oversight Board shall adopt and may, as
necessary, make revisions to, the standards. In developing
standards, the Oversight Board and the Independent System Operator
shall take into consideration generation facilities scheduled for
retirement and valid warranties on generation facilities. The
commission may adopt these standards and ensure compliance with these
standards of owners and operators of generation facilities subject
to its jurisdiction.
(g) Nothing in this section is intended to modify or delay
retrofit of electrical generating facilities pursuant to Chapter 7
(commencing with Section 39910) of Part 2 of Division 26 of the
Health and Safety Code. The Oversight Board shall consult with the
State Air Resources Board and the appropriate local air pollution
control districts and air quality management districts to coordinate
scheduled outages to provide for compliance with those retrofits.
(h) The Independent System Operator shall maintain records
of generation facility outages and shall provide those records ,
and any additional information as determined by the Oversight Board,
to the Oversight Board on a daily basis. Each entity that
owns or operates an electric generating facility in California with a
rated maximum combined capacity of 50 10
megawatts or greater for all units at a single location, shall
provide a monthly report to the Independent System Operator
and the Oversight Board that identifies any periods during
the preceding month when the facility was unavailable to produce
electricity or was available only at reduced capacity. The report
shall identify the reasons for any such unscheduled
unavailability or reduced capacity .
(g) The Independent System Operator and the Oversight Board may
engage in audits or inspection of facilities that fail to comply with
procedures, criteria, or standards established pursuant to this
section or for which compliance is in question. Owners or operators
of generation or transmission facilities shall provide information
and access to the Independent System Operator and the Oversight Board
as necessary to accomplish reasonable audit or inspection. The
Oversight Board may, on petition of the Independent System Operator
or acting on its own motion, and after public notice and hearing,
assess a monetary penalty against the owner or operator of a facility
found to have failed to comply with criteria, standards, or
procedures approved or established pursuant to this section.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
. The Independent System Operator shall immediately transmit
the information to the Oversight Board and the commission.
(i) The commission, in consultation with the Oversight Board,
shall adopt a penalty schedule applicable to any person or entity who
is in violation of any provision of this article.
(j) Upon request of the Oversight Board, the commission may
undertake proceedings related to assessing monetary penalties for
noncompliance.
(k) A court may provide injunctive relief to compel compliance
with plans, standards, or protocols established pursuant to this
section.
(l) This section does not apply to a local publicly owned electric
utility, as defined in subdivision (d) of Section 9604, or a city
and county operating as a public utility, furnishing electric service
as provided in Section 10001.
(m) (1) Except as otherwise provided in this subdivision, this
section shall not apply to nuclear powered generating facilities that
are federally regulated and subject to standards developed by the
Nuclear Regulatory Commission, and that participate as members of the
Institute of Nuclear Power Operations.
(2) The owner or operator of a nuclear powered generating facility
shall file with the Oversight Board an annual schedule of
maintenance, including repairs and upgrades, updated quarterly, for
each generating facility. The owner or operator of a nuclear powered
generating facility shall make good faith efforts to conduct its
maintenance in compliance with its filed plan and shall report to the
Oversight Board any significant variations from its filed plan.
(3) The owner or operator of a nuclear powered generating facility
shall report on a monthly basis to the Oversight Board all actual
planned and unplanned outages of each facility during the preceding
month. The owner or operator of a nuclear powered generating
facility shall report on a daily basis to the Oversight Board the
daily operational status and availability of each facility.
(n) (1) Except as otherwise provided in this subdivision, this
section shall not apply to a qualifying small power production
facility or a qualifying cogeneration facility within the meaning of
Sections 201 and 210 of Title II of the federal Public Utility
Regulatory Policies Act of 1978 (16 U.S.C.A. Secs. 796(17), 796(18),
and 824a-3), and the regulations adopted pursuant to those sections
by the Federal Energy Regulatory Commission (18 C.F.R. Secs. 292.101
to 292.602, inclusive).
(2) An electrical corporation that has a contract with a
qualifying small power production facility, or a qualifying
cogeneration facility, of 10 megawatts or greater shall report to the
Oversight Board maintenance schedules for each facility, including
all actual planned and unplanned outages of the facility and the
daily operational status and availability of the facility. Each
facility shall be responsible for directly reporting to the Oversight
Board maintenance schedules for each facility, including all actual
planned and unplanned outages of the facility and the daily
operational status and availability of the facility, if that
information is not provided to the electrical corporation pursuant to
a contract.
SEC. 4. Section 342.5 is added to the Public Utilities Code to
read:
342.5. (a) Each local publicly owned electric utility that owns
or operates generation or transmission facilities shall file with the
Oversight Board an annual schedule of maintenance, updated
quarterly, for all generation facilities of 10 megawatts or greater
and all transmission facilities. A local publicly owned electric
utility shall make good faith efforts to conduct its maintenance in
compliance with its filed plan and shall report to the Oversight
Board any significant variations from its filed plan.
(b) Each local publicly owned electric utility that owns or
operates generation facilities of 10 megawatts or greater or
transmission facilities shall report on a monthly basis to the
Oversight Board all actual planned and unplanned outages of those
facilities during the preceding month.
(c) Each local publicly owned electric utility that owns or
operates generation facilities of 10 megawatts or greater or
transmission facilities shall adopt standards for the maintenance of
those facilities. Each local publicly owned electric utility shall
file its standards with the Oversight Board. Each local publicly
owned electric utility shall report the daily operational status and
availability of its generation facilities to the Oversight Board on a
daily basis.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs that may be incurred by a local agency or school district
because in that regard 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 XIIIB of the California Constitution.
However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.