BILL NUMBER: AB 262 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Member Bass
( Coauthor: Assembly Member
Fuentes )
FEBRUARY 11, 2009
An act to amend Sections 25450, 25450.1, and 25450.3 of, to
add Section 25450.4 to, and to repeal and add Sect ion
25450.2 of, the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 262, as amended, Bass. American Recovery and Reinvestment
Plan: energy activities, programs, or projects.
Existing law requires the Public Utilities Commission, State
Energy Resources Conservation and Development Commission (Energy
Commission) , and the Department of Water Resources to
undertake various programs related to energy and water conservation.
This bill would require that any moneys received by the state
pursuant to the federal American Recovery and Reinvestment
Plan Act of 2009 that are directed for
energy related energy-related activities,
programs, or projects, be administered by the state's energy and
water agencies, and provide that those activities, programs, or
projects should adhere to the principle of accountability while also
adhering to existing state policies to promote energy efficiency,
promote water conservation, promote the development and use of
renewable energy resources, protect the environment, and provide
green job training.
Existing law requires the Energy Commission to administer funds
allocated to and received by the state pursuant to the federal Energy
Independence and Security Act of 2007. Existing law provides that
not more than 5% of the funds received is to be expended for
administrative expenses.
This bill would additionally require the Energy Commission to
administer funds allocated and received by the state pursuant to the
American Recovery and Reinvestment Act of 2009 and would increase the
amount expended for administration expenses for these two purposes
to not more than 10%. The bill would authorize the Energy Commission
to adopt guidelines governing the awarding, eligibility, and
administration of those federal funds.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Any moneys received pursuant to the federal American
Recovery and Reinvestment Plan Act of 2009
(Public Law 111-5) that are directed for energy
related energy-related activities, programs, or
projects, including energy efficiency and renewable energy
programs, projects for the building of electrical transmission, and
activities to create conservation or "green-collar" jobs, shall be
administered by the appropriate state energy and water agencies and
should adhere to the principle of accountability while also adhering
to existing state policies to promote energy efficiency, including
green building practices, promote water conservation, promote the
development and use of renewable energy resources, protect the
environment, and provide green job training.
SEC. 2. Section 25450 of the Public
Resources Code is amended to read:
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)
(1) The 100th Congress enacted the Energy
Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.)
that provides that establishes an energy
efficiency and conservation block grant program to provide
grants to eligible entities, including states and local
governments , to help them reduce fossil fuel
emissions, improve energy efficiency, and reduce overall energy
use consumption .
(3)
(2) 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.
(3) The 111th Congress enacted the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) that appropriates funds
for energy efficiency and conservation, water conservation, home
weatherization, green workforce development, and renewable energy.
(b) It is the intent of the Legislature to fully
that the state achieve the purposes and
implement the requirements for for these
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 grant programs in the most expedient
manner possible. Moreover, to the extent possible without causing
undue delay, the commission shall look to the Energy Independence and
Security Act of 2007 and the American Recovery and Reinvestment Act
of 2009 programs and make policy decisions that leverage and maximize
the use of these dollars, including, but not limited to,
the areas of energy efficiency, renewable energy, water efficiency,
weatherization, and green workforce development .
(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.
SEC. 3. Section 25450.1 of the Public
Resources Code is amended to read:
25450.1. Funds (a)
The commission shall administer 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 and the American Recovery and
Reinvestment Act of 2009 (Pub. Law No. 111-5) .
(b) The commission may award grants from funds received pursuant
to the Energy Independence and Security Act of 2007 and the American
Recovery and Reinvestment Act of 2009, as well as enter into
contracts to perform functions required to promptly award energy
efficiency and conservation block grants.
SEC. 4. Section 25450.2 of the Public
Resources Code is repealed.
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.
SEC. 5. Section 25450.2 is added to the
Public Resources Code , to read:
25450.2. The commission shall administer the funds received
pursuant to Section 25450.1 in accordance with all applicable federal
requirements regarding the use of those funds.
SEC. 6. Section 25450.3 of the Public
Resources Code is amended to read:
25450.3. Not The commission shall expend
not more than 5 10 percent of the
funds received pursuant to Section 25450.1 shall be expended
for administrative expenses, including,
that shall include, but are not
limited to, the combined administration program costs,
indirect costs, overhead, reporting and evaluation
activities required by the Energy Independence and Security Act of
2007 (42 U.S.C. Sec. 17001 et seq.) 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 .
SEC. 7. Section 25450.4 is added to the
Public Resources Code , to read:
25450.4. (a) The commission may adopt guidelines governing the
award, eligibility, and administration of funding pursuant to this
chapter at a publicly noticed meeting. For the initial adoption of
guidelines, the commission shall provide written notice to the public
of not less than 30 days. For substantive amendments to the
guidelines, the commission shall provide written notice to the public
of not less than 10 days. Notwithstanding any other law, guidelines
adopted pursuant to this chapter shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
(b) Awards made pursuant to this chapter are subject to appeal to
the commission upon a showing that factors other than those described
in the guidelines adopted by the commission were applied in making
the awards and payments.