Today's Law As Amended


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AB-57 Electrical corporations: crude petroleum refineries.(2001-2002)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) California has experienced unprecedented shortages of electric energy in the past year, which have led to instances and material threats of rolling blackouts and involuntary curtailment of firm service to utility customers.
(b) California experienced multiple and extended electricity interruptions in January 2001, which resulted in the inability of pipeline companies to deliver petroleum products and resulted in spot shortages of gasoline and diesel fuels at numerous California terminals.
(c) Electric service interruptions and resulting inability to transport petroleum products caused half of the refineries in California to reduce their operations resulting in critical shortages of jet fuel at San Francisco and Los Angeles airports.
(d) With California’s fuel infrastructure including production, pipelines, refineries, and distribution terminals in continuous operation to meet California cleaner burning gasoline specifications and other fuel supply needs, the state maintains a delicate supply and demand balance. An interruption in the continuous operation of California’s critical fuel infrastructure will have a severe impact on fuel supplies in California.
(e) Shortages of electricity are likely to continue until sufficient additional generation and transmission capacity is installed, operational, and effective, and long-term conservation measures are in place.
(f) Shortages could lead to increased curtailments of firm service customers including refineries and other sectors of California’s critical fuel infrastructure.
(g) Even a brief curtailment of certain industrial customers, including, but not limited to, refineries, may result in plant outages lasting from two days to three weeks.
(h) Curtailment and the resulting extended plant outages for utility customers engaged in the production of gasoline, diesel fuel, aviation fuels, and related products could result in serious shortages of these critical fuels, impairing the generation of electricity, air transportation, automobile transportation, commercial transportation, and other functions critical to the residents and economy of this state.
(i) Crude petroleum refineries connected directly to the transmission grid historically have not been included in rotating outages, since those outages have been effected through the interruption of distribution circuits.
(j) It is the intent of the Legislature to create a separate priority for the curtailment of electric service to crude oil refineries to minimize the potential for fuels shortages that would endanger the health, welfare, and safety of the people of this state.

SEC. 2.

 Section 2773.3 is added to the Public Utilities Code, to read:

2773.3.
 (a) As used in this section, the term “crude petroleum refinery” means all operating units associated directly with and necessary to the production of gasoline, diesel fuel, or aviation fuel that are located on or near a common industrial site, including operating units engaged in the production, manufacturing, storage, or transportation of refinery feedstocks, raw materials, transportation fuels, or byproducts.
(b) The curtailment or other mandatory interruption of electric service to a crude petroleum refinery shall precede only the curtailment or interruption of electric supply for customers in the “essential use” category under Decision No. 91548 of the commission.
(c) An electrical corporation shall provide the maximum notice practicable to a crude petroleum refinery prior to any curtailment of electricity service. An electrical corporation shall consult with the refinery to minimize the extent and duration of any outage by notifying the customer at the commencement of any curtailment period during which there is a material likelihood that the customer will be required to curtail, by estimating the time at which curtailment may be required and by advising the customer periodically of any material changes in the electrical corporation’s estimate of curtailment or curtailment time.
(d) This section does not excuse the performance by a crude petroleum refinery of any obligation under a voluntary or elective electric service interruption or demand-relief program administered by the commission or the Federal Energy Regulatory Commission.
SEC. 3.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to address the potential curtailment of electric power to critical fuels customers and to prevent the resulting shortages of critical fuels, which would endanger the health, welfare, and safety of the people of this state, it is necessary for this act to take effect immediately.