CPUC Public Agenda 3278 Thursday, July 28, 2011, 9:00 a.m. 505 Van Ness Ave, San Francisco

1. CPUC Public Agenda 3278Thursday, July 28, 2011, 9:00 a.m.505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Timothy Alan Simon Michel Peter Florio Catherine J.K. Sandoval Mark J. Ferron www.cpuc.ca.gov

2. Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins. Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence. Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers. A sign will be posted when 1 minute remains. A bell will ring when time has expired. Those who sign up after 9:00 a.m. will only have 1 minute. The following items are NOT subject to Public Comment: Items: 27, 34, 35, 38 & 39 All items on the Closed Session Agenda

3. Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins. Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence. Once called, each speaker has up to 2 minutes to address the Commission. A sign will be posted when 1 minute remains. A bell will ring when time has expired. Those who sign up after 9:00 a.m. will only have 1 minute. The following items are NOT subject to Public Comment: Items: 27, 34, 35, 38 & 39 All items on the Closed Session Agenda

4. Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins. Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence. Once called, each speaker has up to 1 minute to address the Commission. A bell will ring when time has expired. The following items are NOT subject to Public Comment: Items: 27, 34, 35, 38 & 39 All items on the Closed Session Agenda

5. Agenda Changes • Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting. • Items on Today’s Consent Agenda are: 1, 3, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39 & 40 • Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting. • Item: 45 from the Regular Agenda has been added to the Consent Agenda. • Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. • Item: None have been moved to the Regular Agenda. • Item: Nonehave been withdrawn. • The following items have been held to future Commission Meetings: • Held to 8/18/11: 2, 4, 5, 13, 21, 22, 23, 24, 42 & 43

6. Regular Agenda • Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote. • For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed. • The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov. • Late changes to agenda items are available on the Escutia Table.

7. Regular Agenda – Energy Orders Item #41 [10387] Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company's Rules to Protect the Privacy and Security of Usage Data R08-12-009 Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission's own Motion to Actively Guide Policy in California's Development of a Smart Grid System. Quasi-Legislative Comr. Peevey/ ALJ Sullivan ---------------------------------------------------------------------------------------------------------------- • PROPOSED OUTCOME: • Adopts privacy and security rules. • Expands consumer and third party access to electricity usage and pricing information. • Calls for pilot studies providing access to Smart Meters. • ESTIMATED COST: • None.

8. Commissioners’ Reports

9. Management Reports

10. Regular Agenda – Management Reports and Resolutions Item #44 [10541] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

11. CPSD Safety Report Paul King Deputy Director, CPSD California Public Utilities Commission July 28, 2011

12. Presentation Overview July 14, 1991, derailment and toxic spill in the Sacramento River at the Cantara Loop above Dunsmuir. Subsequent responsive legislation. CPUC statewide risk assessment. CPUC proceedings, rules, litigation, settlement. Recent derailment history. Current activity.

13. Southern Pacific RailroadCantara Loop derailment and toxic spillJuly 14, 1991

14. Toxic plume in Sacramento RiverJuly 14 – 16, 1991 • Over 19,000 gallons of metam sodium spilled. Metam sodium is a pesticide and herbicide used to sterilize soil. Forms many toxins when mixed with water.

15. Environmental and economic consequences • Sudden and catastrophic reduction in canopy cover and foliage along the river, with a corresponding dramatic loss of many wildlife species dependent on the river’s riparian vegetation. Wildlife such as birds, bats, otters, and mink either starved or were forced to move because their food sources were no longer available. Over a million fish, and tens of thousands of amphibians and crayfish were killed. Millions of aquatic invertebrates, including insects and mollusks, which form the basis of the river’s ecosystem, were destroyed, with some becoming extinct. Hundreds of thousands of willows, alders, and cottonwoods eventually died. Many more were severely injured. The chemical plume left a 41-mile wake of destruction, from the spill site to the entry point of the river into Shasta Lake. Tourist, fishing economic basis for Dunsmuir area devastated until river recovered years later. 3,000 plaintiffs reach $15 million settlement for injury claims. State and federal agencies reach $38 million settlement for damages and recovery efforts.

16. Accident Causes • “Stringlining.” • Excessive lateral versus vertical forces – ratio of lateral to vertical forces (L/V ratio). • Unsafe train make-up: Empty car on head-end of heavy train, long car coupled to short car. • Steep grade, sharp curve, track-train dynamics (TTD). • Rule change made previously that weakened train make-up rules. • Lack of adequate review of train make-up rules changes – no validation of effect on safety, i.e., safe L/V forces. • Daily certainties - operational expediency and efficiency - attended to at cost of attending to low probability occurrence.

17. CPUC actions • Accident investigation, informal and formal actions. • Required Southern Pacific: • To scientifically validate its train make-up rules. • To comply with those rules. • To obtain approval from Commission staff for any train make-up rules changes. • Proposals for changes must be accompanied by scientific validation of their safety. • To comply with track strength standards exceeding Federal Railroad Administration standards.

18. Cantara Loop guard railing

19. Legislation following Cantara Loop derailment:New PU Code sections • 7711. The commission shall annually report to the Legislature, on or before July 1, on sites on railroad lines in the state it finds to be hazardous…. …a list of all railroad sites in the state that the commission determines, pursuant to Section 20106 of Title 49 of the United States Code, pose a local safety hazard…. (underlining added) • 7712. On or before January 1, 1993, the commission shall adopt regulations, based on its findings and not inconsistent with federal law. The commission may amend or revise the regulations as necessary thereafter, to reduce the potential railroad hazards identified in Section 7711. In adopting the regulations, the commission shall consider at least all of the following: …Sizes, numbers, and configurations of locomotives.…Brakes.…Length, weight, and weight distribution of trains.…Speeds and accelerations of trains….

20. Federal/state railroad safety jurisdiction 49 USC Sec. 20106. National uniformity of regulation Laws, regulations, and orders related to railroad safety… shall be nationally uniform to the extent practicable. A State may adopt… a law, regulation, or order related to railroad safety [if the FRA does not have] an order covering the subject matter of the State requirement. A State may adopt or continue in force an additional or more stringent law, regulation, or order related to railroad safety or security when the law, regulation, or order– • is necessary to eliminate or reduce an essentially local safety hazard; • is not incompatible with a law, regulation, or order of the United States Government; and • does not unreasonably burden interstate commerce.

21. Derailment history at the Cantara Loop 1976 - 1991

22. Local safety hazard sites identified and verified by CPUC staff

23. Local Safety Hazard Regulation • 1997: CPUC adopted regulations for 12 different locations. • 1997 – 2003: Regulations mostly successfully challenged by Southern Pacific and Santa Fe railroads in Federal District Court and 9th Circuit Court of Appeals on the basis of federal preemption. • 2003:Train make-up regulations remanded from 9th Circuit to District Court. • 2004: Railroads and CPUC settle on train make-up regulation for 10 locations.

24. 2004 Train make-up regulation settlement • CPUC may enforce railroads’ train make-up rules, with some exceptions such as locomotive power restrictions. • Railroads may change train make-up rules upon notice to CPUC staff. • Notice must include expert explanation and justification of the rule changes. • Justification must include critical calculations of L/V ratios. • Railroads must identify person responsible for determining TTD rule safety and make available to CPUC staff for questioning and addressing concerns.

25. July 31, 2003 derailment just south of the Cantara Loop Recent track-train dynamics accident history

26. UPRR Cantara Loop derailmentJanuary 21, 2009

27. BNSF Miramar derailmentMarch 15, 2010

28. UPRR Gold Run derailmentFebruary 28, 2011

29. UPRR Caliente derailmentJuly 1, 2011

30. Current issues, actions • Issues: • Automated train consist verification. • Computerized screening for train make-up rule compliance. • Train make-up rule oversight. Gaps? • Distributed power failures. • Longer, heavier trains. • Accident investigations. • Quarterly meetings with UPRR and BNSF: • Addressing each accident. • Review settlement compliance. • Planned dedicated meetings: • Review, update of settlement effectiveness. • What new contributions might 20 years of technological advances bring to TTD safety?

31. Regular Agenda – Management Reports and Resolutions Item #44 [10541] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

32. Management Reports

33. The CPUC Thanks YouFor Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: August 18, 2011, at 9:00 a.m.