8. Assignment of Proceeding

Carl W. Wood is the Assigned Commissioner. John E. Thorson and Burton W. Mattson are the assigned ALJs in this proceeding.

Findings of Fact

1. On April 2, 2003, the Committee filed its Logbook Standards for Thermal Powerplants with the Commission for Commission implementation and enforcement pursuant to § 761.3(a).

2. Timely comments and reply comments were filed and served regarding Commission implementation and enforcement of Logbook Standards, but no motion for formal hearing was filed.

3. The adopted Logbook Standards under consideration here apply only to thermal, not hydroelectric, powerplants.

4. Excluding EWGs would eliminate powerplants the Legislature has determined are essential facilities providing a critical and essential good to California, and would frustrate the legislative findings and declarations in SB 2X 39.

5. The Commission's implementation and enforcement of Logbook Standards for thermal powerplants are implementation and enforcement of operation and maintenance standards, not the establishment of wholesale electricity rates for transactions in interstate commerce.

6. FERC approval of the same generator maintenance and operation standards that the Commission adopts will eliminate potential conflicts in the maintenance and operation requirements that the EWGs must comply with in order to satisfy the complementary, but different, policy concerns of the state and federal governments; will allow multiple, complementary regulatory purposes to be satisfied by a single set of standards, thereby promoting governmental efficiency and simplifying the job of the regulated community; and will encourage and support the important principle of collaborative federalism, under which the state and federal governments recognize and respect, and to the extent possible seek to harmonize, their respective regulatory purposes and the mechanisms they employ to achieve these purposes.

7. Logbook Standards address the chronological history of the facility, including detailed entries regarding the operation and maintenance of the facility.

8. Keeping records of operation and maintenance of a facility is a basic and prudent component of operation and maintenance practice.

9. The Committee has provided notice of, and received public comment on, proposed thermal Logbook Standards.

10. There are many ways to establish and maintain logbooks, along with the information specified in the Logbook Standards, and electric generation facilities do not necessarily use the same methods at present.

11. It would be unreasonably burdensome to implement Logbook Standards by requiring electric generation facilities to immediately make substantial changes to current procedures and systems, or duplicate existing systems by again recording data that is currently captured and maintained elsewhere in the company or facility.

12. The Commission's focus at this time is on whether logbook information is kept and is available, not the particular format.

13. A compliance document can show where and how data required by the Logbook Standards is recorded and maintained.

14. Not all facility operators have access to all the data specified in the Logbook Standards.

15. While no party supports adoption of a common logbook format at this time, there are potentially some benefits to a common logbook format.

16. With more than 250 generating sites in California, a common logbook format may speed future staff analysis and audits, promote efficiency, and assist the Commission ensure that the public interest findings and declarations in SB 2X 39 are being achieved by these essential electric generating facilities (e.g., that they are being effectively and appropriately maintained and efficiently operated to promote public health and safety, ensure service reliability and ensure service adequacy).

17. A common logbook format is an element of implementation and may assist in enforcement.

18. These benefits (i.e., facilitating future staff analysis and audits, promoting efficiency, assisting the Commission ensure that the public interest findings and declarations in SB 2X 39 are achieved) support consideration of a common format that, if adopted, might be phased in over time.

19. The compliance document will show how data required under the Logbook Standards is collected, recorded and maintained by a covered electric generating facility through the course of its ordinary business practices.

20. Only SDG&E recommends the use of PBR to implement and enforce compliance with Logbook Standards, and other utilities, such as PG&E and SCE, do not request the option to apply for PBR.

21. The verified statement that the facility is in compliance with Logbook Standards, and has prepared and is maintaining logbooks and a compliance document, will not present concerns about disclosure of personal or commercially sensitive information.

22. If a generator subject to § 761.3 is asked to provide a copy of its logbooks or compliance document, the generator may provide a copy with a request that the document(s) be subject to protection with citation to appropriate authority for that protection.

23. The logbooks and compliance document themselves need not be filed or served, but must be readily available to Commission staff and authorized personnel at all times.

Conclusions of Law

1. A formal hearing on thermal Logbook Standards is neither necessary nor required.

2. Pursuant to §§ 761.3(d) and 761.3(h), and consistent with Committee Resolution No. 1, thermal Logbook standards should not apply to:


a. 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;


b. Qualifying small power production facilities or qualifying cogeneration facilities within the meaning of §§ 201 and 210 of Title 11 of the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), 796(18), and 824a-3), and the regulations adopted pursuant to those sections by the Federal Energy Regulatory Commission (FERC; 18 C.F.R. Secs. 292.101 to 292.602, inclusive);


c. Generation units installed, operated, and maintained at a customer site, exclusively to serve that customer's load;


d. Facilities owned by a local publicly owned electric utility as defined in California Pub. Util. Code § 9604(d);


e. Facilities at a public agency that are used to generate electricity incidental to the provision of water or wastewater treatment; and


f. Facilities owned by a city and county operating as a public utility, furnishing electric service as provided in California Pub. Util. Code § 10001.

4. Notwithstanding other provisions of the Public Utilities Code that might otherwise exempt EWGs (§ 228.5(d)), the Commission should implement and enforce standards adopted by the Committee for the operation and maintenance of electric generation facilities owned by an electrical corporation or located in California to ensure their reliable operation. (§ 761.3(a).)

5. An electrical corporation includes every corporation or person owning, controlling, operating, or managing any electric plant for compensation within California, with limited and specific exceptions. (§ 218.)

6. The Commission should implement and enforce SB 2X 39 in ways that achieve the Legislative finding and declarations stated therein, which include:

7. The law identifies the specific categories of facilities and powerplants the Legislature excludes from California's adoption, implementation and enforcement of operation and maintenance standards (e.g., nuclear, QFs, publicly owned), and the legislation does not exclude EWGs.

8. The Legislature provided specific additional jurisdiction to the Commission to implement and enforce Committee-adopted operation and maintenance standards, including with regard to EWGs.

9. EWGs should be included in Commission implementation and enforcement of thermal Logbook Standards.

10. Federal law does not preclude Commission implementation and enforcement of operation and maintenance standards with respect to generating assets owned by EWGs; applying such standards to the generating assets of EWGs is within the authority reserved to the states by Congress with respect to electric generating facilities; and Commission implementation and enforcement of such standards does not disturb FERC's ratemaking regulation of wholesale market transactions in interstate commerce.

11. The Federal Power Act withholds jurisdiction from FERC respecting facilities used for the generation of electric energy and leaves such authority with the states.

12. The Executive Director should forward the standards adopted in this Decision, and in all related current and future decisions that implement generator maintenance and operation standards, to the ISO with a request that the ISO submit these adopted standards to FERC for approval as amendments to the ISO's tariff

13. The Committee is not a state agency, Committee members are not officers, and the APA does not govern the Committee's procedures.

14. Thermal Logbook Standards should be implemented and enforced through a compliance document, and an authorized representative should file a verified statement of compliance regarding logbook standards and the compliance document.

15. The compliance document should show:

16. Each electric generation facility subject to § 761.3 that is 50 MW or larger should be required to file a verified statement with the CPSD Director within 30 days of the date this order is mailed.

17. The verified statement should:

18. A common format should not be required at this time for data recorded and maintained pursuant to thermal Logbook Standards, but respondents, with staff assistance (to the extent staff resources permit), should develop a common format for Commission consideration.

19. Within 12 months of the date this decision is mailed, respondents should file an application that contains the information identified in this order.

20. Existing authority in the Public Utilities Code should be used to enforce thermal Logbook Standards, and no new rules, protocols or mechanisms pursuant to that authority should be adopted in this order. Additional enforcement methods may be set forth in a General Order subsequently adopted by the Commission.

21. Committee-adopted operation and maintenance standards do not expire, or otherwise become unenforceable, after December 31, 2004, even if the Committee expires.

22. The Commission is never excused from implementation and enforcement of Committee-adopted operation and maintenance standards.

23. CEQA provides a categorical exemption for projects regarding the operation and maintenance of existing electric generating facilities, and a new facility will be subject to applicable CEQA review when construction of the facility is proposed.

24. The Executive Director should file a notice of exemption from CEQA regarding thermal Logbook Standards.

25. This order should be effective immediately so that Logbook Standards for thermal plants can be implemented and enforced without delay, and the legislative findings and declarations contained in SB 2x 39 can be secured for California citizens without delay.

INTERIM ORDER

IT IS ORDERED that:

1. The Commission shall implement and enforce Logbook Standards for thermal powerplants adopted by the California Electricity Generation Facilities Standards Committee (Committee) as contained in Sections I and II of Attachment A.

2. Thermal Logbook Standards shall apply to each existing and new facility that generates electric energy by the use of thermal resources owned by an electrical corporation or located in California subject to the limited exceptions stated in Section III of Attachment A, and shall apply to electric generation facilities that are 50 megawatts (MW) or larger.

3. Within 30 days of the date this order is mailed, an authorized representative of each electrical generation facility subject to Pub. Util. Code § 761.3 that is 50 MW or larger shall file one original verified statement with the Director of the Commission's Consumer Protection and Safety Division (CPSD). Within 30 days of the date of initial operation of a new facility, an authorized representative of each electrical generation facility subject to Pub. Util. Code § 761.3 that is 50 MW or larger shall file one original verified statement with the CPSD Director. The verified statement shall include at least the following:

The compliance document shall contain the following:


a. where data required by the thermal logbook standards is recorded and maintained,


b. how data is recorded and maintained (e.g., hard copy or electronic),


c. any necessary format or presentation protocols that must be understood to decipher the meaning of the electronically or manually maintained data, and


d. anything else reasonably necessary to fulfill or demonstrate compliance with thermal logbook standards.

4. Respondents shall meet with Commission staff (to the extent staff resources permit) to discuss a common format for recording and maintaining thermal Logbook Standards data. Within 12 months of the date this decision is mailed, respondents shall file an application which contains (a) a cost-effectiveness assessment (of whether or not to adopt and implement a common format); (b) one or more proposals for recording and maintaining logbook data in a common format for most, if not all, Logbook Standards data; (c) an implementation schedule for the common format; (d) applicant's (or applicants') recommendation(s); and (e) anything else reasonably necessary for the Commission to make an informed decision on a common format. One respondent shall take the lead in preparing and filing the application. Respondents shall file a motion for a ruling by the Administrative Law Judge handling Logbook Standards to appoint one respondent to take the lead if respondents are unable to select one among themselves.

5. The Executive Director will file a notice of exemption from the California Environmental Quality Act regarding Logbook Standards for thermal powerplants.

6. The Executive Director will forward the standards adopted in this Decision, and in all related current and future decisions that implement generator maintenance and operation standards, to the ISO with a request that the ISO submit these adopted standards to FERC for approval as amendments to the ISO's tariff.

This order is effective today.

Dated May 6, 2004, at San Francisco, California.

ATTACHMENT A

R.02-11-039

Parts I and II adopted April 1, 2003 by the

California Electricity Generation Facilities Standards Committee

I. PURPOSE

The intent of this document is to define the requirements for facility logs for plants generating electricity by the use of thermal energy.

II. GENERAL

Each generating facility shall maintain a Control Operator Log that contains the chronological history of the facility including detailed entries regarding the operations and maintenance of the facility. Where information is unit specific, information for each unit must be recorded and so identified.

The Control Operator Log is a formal record of real time operating events as well as the overall status of the generating units and auxiliary equipment under the purview of the Control Room Operator. The log shall also contain an accurate and concise record of important and/or unusual events involving operations, maintenance, water chemistry, safety, accidents affecting personnel, fires, contractor activities, environmental matters, and any other pertinent information concerning the operation of the facility. The log shall also record communications between the facility and outside entities including but not limited to the Independent System Operator (ISO), scheduling coordinators or headquarters facilities, regulators, environmental agencies, CalOSHA or similar agencies. The log shall be maintained notwithstanding and in addition to any other similar requirements that mandate that events be recorded. The generator must collect and record all information specified in these standards. All such information must be readily available to operators, California Public Utilities Commission staff, and other authorized personnel at all times.

Notwithstanding the above, generators may elect to record certain kinds of information in separate logs, as authorized by either Exception 1 or Exception 2 below. The information specified in Exception 1 may be recorded in an Equipment Out of Service Log. Similarly, the information specified in Exception 2 may be recorded in a Work Authorization log. Information recorded in these separate logs need not be recorded in the Control Operator log.

All required logs entries shall be retained in hard copy, electronic format, or both for a minimum period of five years from the date of the log entry. Each log entry shall start by recording the time of the event. The Generating Asset Owner (GAO) is responsible for maintaining the integrity of the generating facility logs.

Each facility must record a Plant Status Entry at least once each calendar day. If practicable, the control operator shall make that entry at midnight; however, a facility may for operational reasons elect to make that entry at another time. In any case, the Plant Status Entry must be made at the same time each day, except when emergency conditions require a postponement. In the case of such emergency conditions, the entry for that day shall be made as soon as it is safe to do so.

Information in the Plant Status Entry shall include:

The first entry in the Control Operator Log at the start of a shift shall identify each operator on that shift and by some regular means distinguish his/her responsibilities (list in a regular order the identity of the Shift Supervisor(s), Control Operator(s), Assistant Control Operator(s) and Plant Equipment Operator(s)). This initial entry shall indicate that the crew has ascertained the plant status through the shift turnover, review of the log and a check of the indications and alarms in the control room.

Events shall be logged chronologically as they occur. Significant entries will include the control operator's name at the end of the entry preceded by the name(s) of others involved in the activity.

The events recorded in the Control Operator log shall include, but are not limited to, the following:

Exceptions:

1. In lieu of logging equipment out of service information in the plant status entry, an Equipment OOS Log may be utilized, at the discretion of the GAO, to track equipment declared out of service. The work authorization program is intended to provide a safe work environment for current maintenance activities. If a delay is encountered in the repair process, the work authorization should be released and the equipment declared OOS. If the OOS designation is expected to be of short duration (five days or less), the OOS entry should be carried forward in the plant status Control Operator Log entry. If a longer period is anticipated, the OOS entry can be recorded in the OOS log to avoid carrying it forward repeatedly in the CO log. Information in the OOS log shall include the following:

2. In lieu of logging outstanding work authorizations in the plant status entry, a Work Authorization log book may be utilized, at the discretion of the GAO, during periods of construction, overhauls, or major work; and contains work authorizations, commonly referred to as clearances issued, released, and associated with the special activity. All other entries pertaining to the special activity shall be entered in the Control Operator log. Work authorization log entries do not need to be carried forward for each plant status but may remain for the duration of the special activity. Information in the Work Authorization log shall include the following:

III. THERMAL PLANTS TO WHICH

Thermal Logbook Standards are applicable to each facility that generates electric energy by the use of thermal resources owned by an electrical corporation or located in California that is 50 MW or larger. Thermal Logbook Standards are not applicable in the following cases (see California Pub. Util. Code §§ 761.3(d), 761.3(h)):

Electrical corporation does not include electric plant:


a. where electricity is generated on or distributed by the producer through private property solely for its own use or the use of its tenants and not for sale or transmission to others (§ 218(a)),


b. employing cogeneration technology or producing power from other than a conventional power source solely for one or more of three named purposes (§ 218(b)),


c. employing landfill gas technology for one or more of three named purposes (§ 218(c)),


d. employing digester gas technology for one or more of three named purposes (§ 218(d)), and


e. employing cogeneration technology or producing power from other than a conventional power source for the generation of electricity that physically produced electricity prior to January 1, 1989, and furnished that electricity to immediately adjacent real property for use thereon prior to January 1, 1989 (§ 218(e)).

(END OF ATTACHMENT A)

ATTACHMENT B

R.02-11-039

SAMPLE VERIFIED STATEMENT

The following is a sample verified statement. Electric generating facilities may use a different verified statement as long as it accomplishes the same objectives. Similarly, Consumer Protection and Safety Division (CPSD) may develop and recommend to generators a different sample verified statement as long as it accomplishes the same objectives.

SAMPLE:

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Verified Statement Regarding Logbooks and Compliance Document.

_______________________________

(Number may be entered by CPSD.)

VERIFIED STATEMENT REGARDING LOGBOOKS

AND COMPLIANCE DOCUMENT

I verify that the electric generation facility identified below is owned by an electrical corporation or located in California. (Public Utilities Code Section 761.3.) I further verify that:

The electric generation facility is:

Verification by employee or officer:

I am an employee or an officer of the electric generation facility identified above that is subject to Public Utilities Code Section 761.3. I am authorized to make this verification on its behalf. The above statements are true of my own knowledge, except as to matters that are stated on information or belief, and as to those matters, I believe them to be true. I have exercised due diligence and reasonable care in determining the truth, or believed truth, of these matters.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on ________________at ____________________, California.

Verification by attorney:

I am the attorney for the electric generation facility identified above that is subject to Public Utilities Code Section 761.3, and an employee or officer of the facility is absent from the County of _________, California, where I have my office. I make this verification for that reason, and I am authorized to do so. The above statements are true of my own knowledge, except as to matters that are stated on information or belief, and as to those matters, I believe them to be true. I have exercised due diligence and reasonable care in determining the truth, or believed truth, of these matters.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on ________________at ____________________, California.

(END OF ATTACHMENT B)

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