Bill Text: CA AB853 | 2015-2016 | Regular Session | Amended
Bill Title: Electrical and gas corporations: security of plant and facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB853 Detail]
Download: California-2015-AB853-Amended.html
BILL NUMBER: AB 853 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2015
AMENDED IN SENATE SEPTEMBER 1, 2015
AMENDED IN SENATE AUGUST 18, 2015
AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY MARCH 24, 2015
INTRODUCED BY Assembly Member Roger Hernández
FEBRUARY 26, 2015
An act to add Section 764 to the Public Utilities Code, relating
to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 853, as amended, Roger Hernández. Electrical and gas
corporations: security of plant and facilities.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations, as defined. If the commission finds after a
hearing that the rules, practices, equipment, appliances, facilities,
or service of any public utility, or of the methods of manufacture,
distribution, transmission, storage, or supply employed by the public
utility, are unjust, unreasonable, unsafe, improper, inadequate, or
insufficient, the Public Utilities Act requires that the commission
determine and, by order or rule, fix the rules, practices, equipment,
appliances, facilities, service, or methods to be observed,
furnished, constructed, enforced, or employed. The Public Utilities
Act requires the commission to prescribe rules for the performance of
any service or the furnishing of any commodity of the character
furnished or supplied by any public utility and, on proper demand and
tender of rates, require the public utility to furnish the commodity
or render the service within the time and upon the conditions
provided in the rules adopted by the commission.
This bill would, on and after the filing of an electrical
corporation's or gas corporation's general rate case application,
require that electrical corporation or gas corporation, except as
provided, to utilize employees of that corporation for any work
associated with the design, engineering, and operation of its
nuclear, electrical, and gas infrastructure, including all computer
and information technology systems, unless the utility files a
request to employ contract to utilize
persons that are not who will replace those
employees with the commission as a part of the utility's
general rate case application. The bill would require that the
request be a separate stand-alone section that is not embedded in the
general requested staffing change proposals. The bill would require
the utility to demonstrate that the work can be performed safely and
securely, and without jeopardizing the security of its nuclear,
electrical, and gas infrastructure, by persons that are not
employees. infrastructure. The bill would
require the commission to evaluate the utility's proposal to
utilize persons that are not employees. proposal.
The bill would require the commission to issue a written
decision, decision to approve or deny the
request as part of the general rate case proceeding,
determining whether the electrical corporation or gas corporation may
utilize persons that are not employees for the described work.
proceeding.
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 would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new 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:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Protecting the security of nuclear, electrical, and natural
gas utility systems is a paramount state interest.
(b) Protecting the privacy of ratepayers' personal information,
including usage information, is a paramount state interest.
(c) Recent intrusions into major corporate computer systems,
including Sony and Anthem Blue Cross, and the theft of information
from those systems have demonstrated the vulnerability of those
systems.
(d) The computer systems of California's electrical corporations
and gas corporations have information about the design, engineering,
and operation of the nuclear, electrical, and natural gas utility
infrastructure, as well as personal information about California
ratepayers. This information could be used to compromise the security
of California's utility infrastructure and the privacy of California'
s ratepayers.
(e) Widespread deployment of smart meters, smart grid equipment,
and microgrids increases the importance of protecting the computer
systems of electrical corporations and gas corporations.
(f) The part of any computer system that is most vulnerable to
being compromised is the personnel who operate that system.
(g) Electrical corporations and gas corporations should make every
reasonable effort to protect their computer systems from
unauthorized intrusions.
(h) To protect the security of electrical and natural gas utility
computer systems, including nuclear infrastructure, the information
technology personnel who operate those systems should be employees of
the electrical corporation or gas corporation.
(i) To protect the security of nuclear, electrical, and gas
utility infrastructure, the design, engineering, and operation of
that infrastructure should, to the extent feasible, be performed by
employees of the electrical corporation or gas corporation.
SEC. 2. Section 764 is added to the Public Utilities Code, to
read:
764. (a) An electrical corporation or gas corporation shall
utilize employees of the electrical corporation or gas corporation
for any work associated with the design, engineering, and operation
of its nuclear, electrical, and gas infrastructure, including all
computer and information technology systems, unless the utility
complies with the requirements of this section and obtains the
approval of the commission pursuant to this section.
(b) Before utilizing contracting to utilize
persons that are not who will replace
employees of the electrical corporation or gas corporation for
work the same work performed by
those employees that is associated with the design,
engineering, and operation of its nuclear, electrical, and gas
infrastructure, including all computer and information technology
systems, an electrical corporation or gas corporation shall file a
request to employ contract with those
persons that are not who will
replace those employees with the commission, as part of the
utility's general rate case application. The request shall be a
separate stand-alone section that is not embedded in the general
requested staffing change proposals. The utility shall demonstrate
that the work can be performed safely and securely, and without
jeopardizing the security of its nuclear, electrical, and gas
infrastructure.
(c) The commission shall evaluate the utility's proposal
to utilize persons that are not employees of the electrical
corporation or gas corporation for work associated with the design,
engineering, and operation of its nuclear, electrical, and gas
infrastructure, including all computer and information technology
systems. described in subdivision (b).
(d) The commission shall issue a written decision to approve
or deny the proposal described in subdivision (b) as part of
the general rate case proceeding determining whether the
electrical corporation or gas corporation may utilize persons that
are not employees of the electrical or gas corporation for the
described work. proceeding.
(e) A person or corporation owning or operating a qualifying
facility pursuant to federal law or a facility that is an exempt
wholesale generator is not an electrical corporation due to the
ownership or operation of that facility. This subdivision is
declaratory of existing law.
(f) The requirements of this section are applicable only to
electrical corporations or gas corporations that file general rate
cases with the commission.
(g) (1) This section does not apply to an electrical corporation
or gas corporation contracting out construction, alteration,
demolition, installation, maintenance, or repair work on its nuclear,
electrical, or gas infrastructure.
(2) This section does not apply to the design and engineering of
standard equipment purchased from an outside vendor.
(3) This section does not apply to supplemental work performed by
a third party in response to an emergency.
(4) This section does not apply to the design, engineering, or
construction work associated with existing or new electrical or gas
utility infrastructure necessary to accommodate or serve state
transportation infrastructure projects.
(5) Nothing in this section shall be construed to alter the
requirements of Article 5 (commencing with Section 8281) of Chapter 7
of Division 4.
(3)
( 6) For each electrical or gas corporation,
this section shall become effective for that corporation upon the
filing, on or after January 1, 2016, of that corporation's general
rate case application.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.
