SB 18 — Revises provisions governing penalties for certain violations relating to public utilities. (BDR 58-277)

(ReprintedSenate withBill amendmentsNo. adopted on April 19, 2021) FIRST REPRINT S.B.

1818–Committee SENATEon BILLGrowth NOand .Infrastructure CHAPTER..........

18–COMMITTEE ON G ROWTH AND NFRASTRUCTURE (O NB EHALF OF THE PUBLIC U TILITIES COMMISSION OF NEVADA ) PREFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions governing penalties for certain violations relating to public utilities.

(BDR 58-277) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Under existing law, a person who violates a regulation adopted by the Public Utilities Commission of Nevada relating to the operation and maintenance of storage facilities and intrastate pipelines used to store and transport natural gas or liquefied petroleum gas is liable for an administrative fine not to exceed $1,000 per day for each day of the violation, up to a maximum of $200,000 for any related series of violations.

(1) violates certain provisions relating to public utilities;or refuses to obey an order of the Commission.

(2)(NRS violates703.380) anySection rule2 of this billlects increases the maximum administrative fine for such violations that are knowing and willful, or regulationdetrimental to public health or safety, from $1,000 per day to $200,000 per day for each day of the Commission;violation and increases the maximum total from $100,000 to $5,000,000 for any related series of violations.

orFor (3)any fails,other neglectsviolation, -section *SB18_R1*2 –increases 2the –maximum oradministrative refusesfine to obey$100,000 anper orderday, ofnot theto Commission.exceed $2,000,000 for any related series of violations.

(NRS 703.380) Section 2 ofauthorizes thisthe billCommission increasesto thealso maximumassess an administrative fine forin such violations that areincreased knowingmaximum andinaccurate willful, or detrimentalmisleading toand publicwhich healththe orperson safety,knew fromor $1,000through perthe dayexercise to $200,000 per day for each day of thereasonable violationcare and increasesdiligence theshould maximumhave totalknown fromwas $100,000materially toinaccurate $5,000,000or formisleading. any related series of violations.

ForExisting anylaw otherrequires violation,the exceedCommission $2,000,000to forconsider anycertain relatedfactors seriesin determining the amount of violations.an administrative fine.

(NRS 703.380) Section 2 authorizesexpands thethese Commissionfactors to alsoinclude: assess an administrative fine in that increased maximum amount if a person provides to the Commission information which is materially inaccurate or misleading and which the person knew or through the exercise of reasonable care and diligence should have known was materially inaccurate or misleading.

Existing(1) lawthe requiresnature and circumstances of the Commissionviolation, toincluding considerthe certainactual factorsor potential financial impact and actual or potential impact on public health charged in determiningdetecting factorsand voluntarily disclosing the violation to include:the Commission;

(1) the nature and circumstances of the violation, including the actual or potential financial impact and actual or potential impact on public health and safety;

(2) whether the violation was willful;

(3) the good faith of the person charged in detecting and voluntarily disclosing the violation to the Commission;

(6) the economic administrativebenefit finesof assessed previously by the Commissionviolation, foror similarlack violations;ofthereof, and (8) such other factors as necessary to determine the reasonablenessperson ofcharged; the administrative fine.

Section(7) 2 additionally provides that certain limits on administrative fines do not restrict the Commission’samounts authorityof to- require81st aSession public(2021) utility– to2 restore– fundingadministrative tofines aassessed programpreviously orby account as necessary to achieve compliance with an applicable statute or Section 3 of this bill increases the maximumCommission amountfor ofsimilar aviolations; criminal fine that may be imposed on a person who commits certain violations relating to public utilities from $500 to $50,000.

(NRSadministrative 704.640)fine.actors THEas PEOPLEnecessary OFto THEdetermine STATEthe OFreasonableness NEVADA,of REPRESENTEDthe INSection SENATE2 ANDadditionally ASSEMBLY,provides DOthat ENACTcertain ASlimits FOLLOWS:on administrative fines do not restrict the Commission’s authority to require a public utility to restore funding to a program or account as necessary to achieve compliance with an applicable statute or Section 3 of this bill increases the maximum amount of a criminal fine that may be imposed on a person who commits certain violations relating to public utilities from $500 to $50,000.

Section(NRS 1.704.640) EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

Regulations adopted pursuant to this subsection do not apply to activities that are subject to the provisions of NRS 590.465 to 590.645, inclusive, or chapter 704 of NRS.

If the Commission and any other governmental entity or agency of the State have coexisting jurisdiction over the regulation of such storage facilities and intrastate pipelines, the Commission has the final authority to regulate those facilities and pipelines and - *SB18_R1* – 3 – to take such actions as are necessary to carry out the regulations adopted pursuant to subsection 1.

Unless another administrative fine is specifically provided, a person, including, without limitation, a public utility, alternative seller, provider of discretionary natural gas service, provider of new electric resources or holder of any certificate of registration, license or permit issued by the Commission, or any officer, agent or employee of a public utility, alternative seller, provider of discretionary natural gas service, provider of new electric- resources81st Session (2021) – 3 – or holderpermit ofissued anyby certificatethe Commission who:tificate of registration, license (a) Violates any applicable provision of this chapter or permitchapter issued704, by704B, 705 or 708 of NRS, including, without limitation, the Commissionfailure who:to pay any applicable tax, fee or assessment;

(a) Violates any applicable provision of this chapter or chapter 704, 704B, 705 or 708 of NRS, including, without limitation, the failure to pay any applicable tax, fee or assessment;

[, in an amount] If the Commission determines that a violation was willful and knowing, or detrimental to public health or safety, the administrative fine must not [to] exceed [$1,000] $200,000 per day for each day of the violation and not [to] exceed [$100,000][$100,000]er day $5,000,000 for any related series of violations.

(b) The nature, circumstances and gravity of the violation, including, without limitation, the actual or potential financial - *SB18_R1* – 4 – impact and actual or potential impact on public health and safety of the violation;

(d) The good faith of the person charged in detecting and voluntarilyvol(e) disclosingThe good faith of the person charged in attempting to achieve compliance after notification of [a] the violation and to prevent the Commission;reoccurrence of similar violations in the future;

(e) The good faith of the person charged in attempting to achieve compliance after notification of [a] the violation and to prevent the reoccurrence of similar violations in the future;

- 81st Session (2021) – 4 – (h) The amounts of administrative fines assessed previously by the Commission for similar violations, if any;

3.subsection 1 do not restrict the authority of the Commission to in require a public utility to restore funding to a program or account as necessary to achieve compliance with an applicable statute or regulation or an order of the Commission.

The limitations on the amount of an administrative fine in subsection 1 do not restrict the authority of the Commission to require a public utility to restore funding to a program or account as necessary to achieve compliance with an applicable statute or regulation or an order of the Commission.

704.640704.6884, Exceptinclusive, asany otherwiseperson providedwho:ovided in NRS 704.6881 to 704.6884,1. inclusive, any person who:

1.Operates any public utility to which NRS 704.005 to 704.754, inclusive, 704.9901 and 704.993 to 704.999, inclusive, apply without first obtaining a certificate of public convenience and necessity or in violation of its terms;