BILL NUMBER: AB 2176	CHAPTERED  08/01/08

	CHAPTER  229
	FILED WITH SECRETARY OF STATE  AUGUST 1, 2008
	APPROVED BY GOVERNOR  AUGUST 1, 2008
	PASSED THE SENATE  JULY 10, 2008
	PASSED THE ASSEMBLY  JULY 15, 2008
	AMENDED IN SENATE  JULY 3, 2008
	AMENDED IN ASSEMBLY  MAY 23, 2008
	AMENDED IN ASSEMBLY  APRIL 1, 2008

INTRODUCED BY   Assembly Member Caballero

                        FEBRUARY 20, 2008

   An act to add Chapter 5.5 (commencing with Section 25450) to
Division 15 of the Public Resources Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2176, Caballero. Energy: federal block grants.
   The federal Energy Independence and Security Act of 2007 (federal
act) provides energy efficiency and conservation block grants to
states for the purposes of reducing fossil fuel emissions, improving
energy efficiency, and reducing total energy use. That act requires
not less than 60% of the funds allocated to a state to be used to
provide subgrants to local governments that are not eligible to
receive block grants under the act. Existing law authorizes the State
Energy Resources Conservation and Development Commission to apply
for and accept grants.
   This bill would require the commission to administer funds
received by the state pursuant to the federal act and would require
not less than 60% of the funds received to be used to provide
subgrants to cities and counties of specified population sizes. The
bill would require the remaining funds to be used to provide grants
to entities eligible under the federal act. All grants would be
prioritized based on cost-effective energy efficiency. The bill would
require that no more than 5% of the funds received be expended on
administrative expenses.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 5.5 (commencing with Section 25450) is added to
Division 15 of the Public Resources Code, to read:
      CHAPTER 5.5.  ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS


   25450.  (a) The Legislature finds and declares all of the
following:
   (1) The cost of energy in California is increasing and creating
greater demands on local governments' operating budgets.
   (2) The 100th Congress enacted the Energy Independence and
Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) that provides
grants to eligible entities, including states, to reduce fossil fuel
emissions, improve energy efficiency, and reduce overall energy use.
   (3) Section 545(c)(1)(A) of the Energy Independence and Security
Act of 2007 (42 U.S.C. Sec. 17155(c)(1)(A)) mandates that states
receiving block grants under the act use not less than 60 percent of
the grant amount to provide subgrants to local governments that are
not eligible entities for the purposes of the act.
   (b) It is the intent of the Legislature to fully implement the
requirements for energy and conservation block grants provided
pursuant to the Energy Independence and Security Act of 2007 and that
the funds allocated to the state pursuant to that act be
administered by the commission.
   (c) It is the intent of the Legislature to strive to maximize the
opportunity to allocate funds toward the most cost-effective energy
efficiency projects, and when allocating funds toward administration,
the commission should use the 5-percent allowable administrative
expenses as a ceiling and improve efficiencies to allocate less than
the allowable amount.
   25450.1.  Funds allocated to and received by the state pursuant to
the Energy Independence and Security Act of 2007 (42 U.S.C. Sec.
17001 et seq.) shall be administered by the commission.
   25450.2.  (a) Not less than 60 percent of the funds received
pursuant to Section 25450.1 shall be used to provide cost-effective
energy efficiency and conservation grants to cities with a population
of less than 35,000 and counties with a population of less than
200,000, and be prioritized based on cost-effective energy
efficiency.
   (b) The remaining funds received pursuant to Section 25450.1 shall
be used to provide cost-effective energy efficiency and conservation
grants to eligible entities consistent with the Energy Independence
and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.), and be
prioritized based on cost-effective energy efficiency.
   25450.3.  Not more than 5 percent of the funds received pursuant
to Section 25450.1 shall be expended for administrative expenses,
including, but not limited to, the combined administration program
costs, indirect costs, overhead, and costs associated with the
Statewide Cost Allocation Plan, including those administration
program costs, indirect costs, and overhead costs of all other public
and private entities associated with the disbursement, the
expenditure of funds, or both the disbursement and expenditure.