California Senate Bill SB655 Amended / Bill

 BILL NUMBER: SB 655AMENDED BILL TEXT AMENDED IN SENATE APRIL 29, 2009 INTRODUCED BY Senator Padilla FEBRUARY 27, 2009 An act to amend  Section 345.5   Sections 345.5 and 348  of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST SB 655, as amended, Padilla. Independent System Operator:  California Renewables Portfolio Standard Program: greenhouse gas emissions.   transmission facilities.   Existing law   (1)     The Public Utilities Act  requires the Independent System Operator, a nonprofit public benefit corporation created pursuant to law, to ensure efficient use and reliable operation of the state's electricity transmission grid. The operator is required to manage the transmission grid and related energy markets in a manner consistent with applicable state laws intended to protect the public's health and the environment. This bill would require the Independent System Operator to support and assist in implementing the California Renewables Portfolio Standard Program and greenhouse gas emission reduction laws and regulations.  (2) The act also requires the operator to adopt various standards for the transmission facilities under its control.   This bill would additionally require the operator to adopt security standards for those facilities by July 1, 2010.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The Legislature finds and declares the following:   (a) The deployment of smart grid technology creates additional opportunities for unauthorized persons or entities to impact the transmission grid.   (b) Because uninterrupted and reliable electric service is a matter of public health and safety, and is necessary for the conduct of commerce, it is the intent of the Legislature that the Independent System Operator take all necessary steps to ensure that the transmission grid is secure from intrusion by unauthorized persons or entities.   SECTION 1.   SEC. 2.  Section 345.5 of the Public Utilities Code is amended to read: 345.5. (a) The Independent System Operator, as a nonprofit, public benefit corporation, shall conduct its operations consistent with applicable state and federal laws and consistent with the interests of the people of the state. (b)  The   To ensure the reliability of electric service and the health and safety of the public, the  Independent System Operator shall manage the transmission grid and related energy markets in a manner that is consistent with all of the following:  (1) Ensuring the reliability of electric service and the health and safety of the public.   (2)   (1)  Making the most efficient use of available energy resources. For purposes of this section, "available energy resources" include energy, capacity, ancillary services, and demand bid into markets administered by the Independent System Operator. "Available energy resources" do not include a schedule submitted to the Independent System Operator by an electrical corporation or a local publicly owned electric utility to meet its own customer load.  (3)   (2)  Reducing, to the extent possible, overall economic cost to the state's consumers.  (4)   (3)  Supporting and assisting in implementation and compliance with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).  (5)   (4)  Supporting and assisting in implementation and compliance with greenhouse gas emission reduction laws and regulations, including, but not limited to, the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).  (6)   (5)  Maximizing availability of existing electric generation resources necessary to meet the needs of the state's electricity consumers. (c) The Independent System Operator shall do all of the following: (1) Consult and coordinate with appropriate state and local agencies to ensure that the Independent System Operator operates in furtherance of state law regarding consumer and environmental protection. (2) Ensure that the purposes and functions of the Independent System Operator are consistent with the purposes and functions of nonprofit, public benefit corporations in the state, including duties of care and conflict-of-interest standards for officers and directors of a corporation. (3) Maintain open meeting standards and meeting notice requirements consistent with the general policies of the Bagley-Keene Open Meetings Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and affording the public the greatest possible access, consistent with other duties of the corporation. The Independent System Operator' s Open Meeting Policy, as adopted on April 23, 1998, and in effect as of May 1, 2002, meets the requirements of this paragraph. The Independent System Operator shall maintain a policy that is no less consistent with the Bagley-Keene Open Meetings Act than its policy in effect as of May 1, 2002. (4) Provide public access to corporate records consistent with the general policies of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and affording the public the greatest possible access, consistent with the other duties of the corporation. The Independent System Operator's Information Availability Policy, as adopted on October 22, 1998, and in effect as of May 1, 2002, meets the requirements of this paragraph. The Independent System Operator shall maintain a policy that is no less consistent with the California Public Records Act than its policy in effect as of May 1, 2002.  SEC. 3.   Section 348 of the   Public Utilities Code   is amended to read:  348.  (a)     (1)    The Independent System Operator shall adopt inspection, maintenance, repair, and replacement standards for the transmission facilities under its control no later than September 30, 1997.  The Independent System Operator shall adopt security standards for the transmission facilities under its control on or before July 1, 2010.   The   (2)     The  standards, which shall be performance or prescriptive standards, or both, as appropriate, for each substantial type of transmission equipment or facility, shall provide for high quality, safe, and reliable service.  In   (b)     In  adopting its standards, the Independent System Operator shall consider: cost, local geography and weather, applicable codes, national electric industry practices, sound engineering judgment, and experience.  The   (c)     The  Independent System Operator shall also adopt standards for reliability, and safety during periods of emergency and disaster.  The   (d)     The  Independent System Operator shall report to the Oversight Board, at such times as the Oversight Board may specify, on the development and implementation of the standards in relation to facilities under the operational control of the Independent System Operator.  The   (e)     The  Independent System Operator shall require each transmission facility owner or operator to report annually on its compliance with the standards. That report shall be made available to the public.