4. Authority to Adopt Logbook Standards

4.1. Logbook Standards are Operation and Maintenance Standards

WCP, Mirant, AES and Dynegy contend that § 761.3 permits Commission implementation and enforcement of operation and maintenance standards, but that Logbook Standards are neither. As neither operation nor maintenance standards, WCP says:

"the Committee now has gone beyond its express statutory authorization to consider a third set of requirements not mentioned in the statute---logbook standards." (Comments dated April 8, 2003, page 3, footnote deleted.)

These parties conclude that the Commission cannot implement and enforce Committee-adopted standards that are beyond the authority of the Committee to adopt.

To the contrary, Logbook Standards cover "the chronological history of the facility including detailed entries regarding the operations and maintenance of the facility." (Logbook Standards, Section II, page 1; See Attachment A; emphasis added.) The purpose is to document facility operation and maintenance. Keeping records of these activities is a basic and prudent component of operation and maintenance practice. There is no reasonable dispute that the adoption of these standards is within the authority of the Committee, while implementation and enforcement are within the authority of the Commission.

Consistent and adequate record-keeping is an essential component of operation and maintenance practices. Even if the Committee had not adopted Logbook Standards, it would be necessary for the Commission to develop a record-keeping requirement in order to reasonably implement and enforce operation and maintenance standards.

Parties affirm that prudent operation requires reasonable logbook and data-recording. For example:

"The generators that are the focus of the Commission's implementation already follow thorough logbook and data-recording practices as a matter of the prudent operation of their plants." (WCP Comments April 8, 2003, page 5; emphasis added.)

Furthermore, logbooks are consistent with a high priority placed on maintaining and operating plants:

"For its part, WCP places a high priority on maintaining and operating its plants to maximize their availability to meet electric demand and to promote workplace safety and environmental protection. WCP maintains logbooks and other records, consistent with that priority." (WCP Comments April 8, 2003, page 5; emphasis added.)

We agree. Prudent operation and maintenance requires preparation of logbooks, and logbooks are consistent with placing a high priority on reasonable operation and maintenance of powerplants.

4.2. Administrative Procedures Act

PG&E raises the issue of whether or not the Committee must follow the California Administrative Procedure Act (APA).²³ PG&E believes the Committee must comply with the APA. If so, the Commission, according to PG&E, may not implement and enforce Committee-adopted standards if the Committee has failed to follow the requirements of the APA.

We are not persuaded that the Committee is subject to the rulemaking provision of the APA. The purpose of the APA is "to establish basic minimum procedural requirements for the adoption, amendment, or repeal of administrative regulations." (Cal. Gov. Code § 11346(a).) "Regulation" is defined as:

"every rule, regulation, order, or standard of general application or the amendment, supplement, or revision of any rule, regulation, order, or standard adopted by any state agency to implement, interpret, or make specific the law enforced or administered by it, or to govern its procedure. (Cal. Gov. Code § 11342.600; emphasis added.)

For all chapters within Title 2, the term "state agency" is defined to mean "every state office, officer, department, division, bureau, board, and commission." (Cal. Gov. Code § 11000.)

Section 761.3 neither constitutes the Committee as a state office, department, division, bureau, board, or commission, nor its members as officers. The Committee only exists by virtue of the joint participation of the Commission (a state agency) and the CAISO (a public benefit, nonprofit corporation, organized under the California Corporations Code pursuant to § 340 of the Pub. Util. Code). With limited exceptions, neither the Commission nor the CAISO are subject to the rulemaking provisions of the APA.²⁴

Thus, we conclude that the rulemaking provisions of the APA do not govern the work of the Committee because the Committee is not a state agency. This conclusion is further supported by the fact that neither the Commission nor the ISO (whose members sit on the Committee) are generally subject to the rulemaking provisions of the APA.

On the other hand, the Committee is required to provide "notice and opportunity for public comment." (§ 761.3(b)(1).) The Committee has done so. As a result, we find that the Committee's process for adoption of the thermal Logbook Standards is consistent with law, is reasonable, and does not bar Commission implementation and enforcement of those standards.