BILL NUMBER: AB 1016	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Villines

                        FEBRUARY 27, 2009

   An act to amend Section 1250.310 of the Code of Civil Procedure,
to amend Section 14074 of the Corporations Code, to amend Sections
17910.1, 17911.2, 17911.3, 17911.4, 17911.6, 17912, 17912.2, 17925,
and 41304 of the Education Code, to amend Sections 32320, 32321,
32322, 32940, and 32942 of, and to repeal Section 32208 of, the
Financial Code, to amend Sections 9100 and 9101 of the Fish and Game
Code, to amend Sections 11553, 12802.5, 12805, 14450, 14684, 14684.1,
15814.22, 15814.23, 15814.30, 15814.34, 66645, and 66646 of, and to
amend and renumber Section 15814.25 of, the Government Code, to amend
Sections 3808, 3810, 3822, 3822.1, 3822.2, 4799.16, 6815.2, 14584,
21080, 25104, 25106, 25110, 25112, 25123, 25205, 25207, 25212, 25214,
25216.5, 25217.1, 25218, 25219, 25220, 25221, 25222, 25223, 25224,
25225, 25226, 25301, 25302, 25303, 25304, 25305, 25305.5, 25306,
25320, 25321, 25322, 25323, 25324, 25354, 25356, 25357, 25358, 25362,
25364, 25366, 25400, 25401, 25401.2, 25401.5, 25401.6, 25401.7,
25402, 25402.1, 25402.3, 25402.6, 25402.9, 25403, 25403.5, 25403.8,
25404, 25410.5, 25410.6, 25411, 25412, 25413, 25414, 25415, 25416,
25417, 25417.5, 25419, 25420, 25421, 25426, 25433.5, 25434, 25434.5,
25435, 25436, 25441, 25442, 25442.5, 25442.7, 25443, 25443.5, 25445,
25449, 25449.1, 25449.3, 25449.4, 25494, 25496, 25500, 25500.5,
25501, 25501.7, 25508, 25517, 25518, 25519, 25520, 25522, 25523,
25524.1, 25524.2, 25525, 25526, 25527, 25528, 25529, 25530, 25531,
25534, 25534.1, 25538, 25539, 25540, 25540.1, 25540.2, 25540.3,
25541, 25541.1, 25541.5, 25542, 25543, 25601, 25602, 25603, 25603.5,
25608, 25610, 25616, 25617, 25618, 25620, 25620.1, 25620.2, 25620.3,
25620.4, 25620.5, 25620.6, 25620.7, 25620.8, 25620.11, 25630, 25678,
25679, 25696, 25696.5, 25697, 25700, 25701, 25702, 25703, 25704,
25705, 25720, 25721, 25722, 25722.5, 25723, 25741, 25742, 25743,
25744, 25747, 25748, 25751, 25771, 25772, 25773, 25802, 25803, 25900,
25901, 25902, 25911, 25912, 25942, 25967, 25968, 26004, 26011.5,
26011.6, and 30404 of, to amend the heading of Chapter 3 (commencing
with Section 25200) of Division 15 of, to add Sections 3806.5,
25104.1, 25104.2, 25205.5, 25207.5, 25208, 25544, and 25545 to, to
add Chapter 3.5 (commencing with Section 25227) to Division 15 of, to
repeal Sections 3805.5, 25113, 25217, 25217.5, 25449.2, 25502,
25503, 25504, 25504.5, 25505, 25506, 25506.5, 25507, 25509, 25509.5,
25510, 25511, 25512, 25513, 25514, 25514.3, 25514.5, 25515, 25516,
25516.1, 25516.5, 25516.6, 25520.5, 25524.5, 25540.4, and 25540.6 of,
and to repeal and add Sections 25107, 25120, 25200, 25201, 25202,
25203, 25204, and 25206 of, the Public Resources Code, to amend
Sections 332.1, 346, 348, 350, 352, 353.7, 360, 365, 366.1, 366.2,
384, 398.2, 398.3, 398.5, 399.25, 399.8, 399.11, 399.12, 399.13,
399.15, 399.16, 454.5, 464, 848.1, 1001, 1731, 1768, 1822, 2774.6,
2826.5, 2827, 3302, 3310, 3320, 3330, 3341, 3341.1, 3341.2, 3345,
3370, and 9502 of, to add Sections 322, 345.1, 345.2, and 411 to, to
repeal Sections 3325, 3326, and 3327 of, to repeal Article 2
(commencing with Section 334) of Chapter 2.3 of Part 1 of Division 1
of, and to repeal and add Section 3340 of, the Public Utilities Code,
and to amend Section 80000 of, and to add Sections 80001 and 80001.5
to, the Water Code, relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1016, as introduced, Villines. Energy: commission and
department.
   (1) Existing law establishes the State Energy Resources
Conservation and Development Commission, the California Consumer
Power and Conservation Financing Authority, and the Electricity
Oversight Board with jurisdiction related to energy matters. Existing
law provides the California Public Utilities Commission with
jurisdiction over the certification of natural gas and electric
facilities. Existing law also provides the Office of Planning and
Research, the Department of Water Resources, the Department of
General Services, and the Office of the State Architect with
jurisdiction over certain energy-related matters. Existing law
provide the State Energy Resources Conservation and Development
Commission with the jurisdiction over the certification of thermal
powerplants.
   This bill would abolish the State Energy Resources and
Conservation Commission, the California Consumer Power and
Conservation Financing Authority, and the Electricity Oversight
board. The bill would create the Department of Energy, headed by a
Secretary of Energy, and would create the California Energy
Commission and the Office of Energy Market Oversight within the
department. The bill would provide for the creation of various
divisions and subdivisions as deemed necessary by the secretary. The
secretary would be appointed by, and hold office at the pleasure of,
the Governor, subject to confirmation by the Senate. The bill would
authorize the Governor to appoint an Assistant Secretary of Energy
who would serve at the pleasure of the secretary.
   The bill would provide that the California Energy Commission
consists of the following members: the Secretary of Energy who would
be the chair of the commission, 4 members of the public with
qualifications, as specified, appointed by the Governor, subject to
confirmation by the Senate, the chief executive officer of the
California Independent System Operator, the Secretary of the Natural
Resources Agency, and the president of the California Public
Utilities Commission. The bill would provide that the chief executive
officer of the California Independent System Operator, the Secretary
of the Natural Resources Agency, and the president of the California
Public Utilities Commission shall serve as ex officio, nonvoting
members of the commission. The bill would specify that the public
members shall serve for a term of 4 years.
    The bill would vest the Office of Energy Market Oversight with
the powers, duties, responsibilities, obligations, liabilities, and
jurisdiction of the Electricity Oversight Board.
   The bill would vest the new department and the California Energy
Commission with the powers, duties, responsibilities, obligations,
liabilities, and jurisdiction of the State Energy Resources
Conservation and Development Commission and the California Consumer
Power and Conservation Financing Authority, as specified.
   The bill would transfer the jurisdiction over the certification
for electric facilities from the Public Utilities Commission to the
Secretary of Energy. The bill would also transfer jurisdiction of
certain energy-related matters from the Office of Planning and
Research, the Department of Water Resources, the Department of
General Services, and the Office of the State Architect to the
Department of Energy or the California Energy Commission, as
specified. The bill would also rename the California Consumer Power
and Conservation Authority Fund as the California Consumer Power and
Conservation Financing Fund.
   (2) Existing law requires a person proposing to construct a
thermal powerplant or electric transmission line on a site to submit
to the State Energy Resources Conservation and Development Commission
a notice of intention to file an application for the certification
of the site.
   This bill would repeal this requirement.
   (3) Existing law prohibits, with specified exceptions, land use
for a nuclear fission thermal powerplant unless the State Energy
Resources Conservation and Development Commission certifies that
specified conditions exist.
   This will would, instead, prohibit land use for a nuclear fission
powerplant unless the California Energy Commission certifies that
specified conditions exist.
   (4) Existing law prohibits the State Energy Resources Conservation
and Development Commission from certifying a facility that adds
generating capacity to a potential multiple facility site in excess
of the maximum allowable capacity determined by the commission.
   This bill would repeal this prohibition.
   (5) The existing State Assistance Fund for Enterprise Act of 1989
establishes the State Assistance Fund for Enterprise, Business, and
Industrial Development Corporation and provides that a member of the
State Energy Resources Conservation and Development Commission is a
member of the board of directors of the corporation.
   This bill would eliminate the commission's membership on the board
of directors of the corporation.
   (6) The existing Energy Conservation Assistance Act of 1979
establishes, until January 1, 2011, a loan program to provide loans
to specified eligible institutions to maximize energy use savings in
existing and planned buildings of facilities. The act requires an
eligible institution receiving an allocation to compute, annually at
the conclusion of each fiscal year, the cost of energy saved as a
result of implementing a project funded by the allocation.
   This bill would extend the program to January 1, 2026 and would,
additionally, include joint powers authority, as defined, as an
eligible institution. The bill would, additionally, define energy
conservation measures to include measures that would reduce peak
load. The bill would, instead, require an eligible institution to
make the above computation annually for 3 years after the completion
of the energy conservation project.
   (7) Existing law establishes, until January 1, 2010, a financial
assistance program by providing loans to local jurisdictions for the
purposes of reducing energy costs by providing staff training and
support services, including planning design, permitting, energy
conservation, comprehensive energy management, project evaluation,
and development of alternative energy resources. Existing law
requires the State Energy Resources Conservation and Development
Commission, no later than 3 year after the imposition of a fee
pursuant to the program, to report to the Legislature in the
commission's biennial energy conversation report on the effects of
the fees on alternative public and private financing for public
sector programs.
   This bill would extend the financial assistance program to January
1, 2026 and would, additionally, authorize the use of funds from the
loans to purchase, maintain, and evaluate peak load reduction
equipment for existing and planned facilities. The bill would also
repeal the above reporting provision.
   (8) The bill would make conforming changes in existing law.
   (9) The bill would provide that the provisions of the bill are
severable.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1250.310 of the Code of Civil Procedure is
amended to read:
   1250.310.  The complaint shall contain all of the following:
   (a) The names of all plaintiffs and defendants.
   (b) A description of the property sought to be taken. The
description may, but is not required to, indicate the nature or
extent of the interest of the defendant in the property.
   (c) If the plaintiff claims an interest in the property sought to
be taken, the nature and extent of  such   the
 interest.
   (d) A statement of the right of the plaintiff to take by eminent
domain the property described in the complaint. The statement shall
include:
   (1) A general statement of the public use for which the property
is to be taken.
   (2) An allegation of the necessity for the taking as required by
Section 1240.030; where the plaintiff is a public entity, a reference
to its resolution of necessity; where the plaintiff is a
quasi-public entity within the meaning of Section 1245.320, a
reference to the resolution adopted pursuant to Article 3 (commencing
with Section 1245.310) of Chapter 4; where the plaintiff is a
nonprofit hospital, a reference to the certificate required by
Section 1260 of the Health and Safety Code; where the plaintiff is a
public utility and relies on a certification of the  State
Energy Resources Conservation and Development Commission 
 Secretary of Energy  or a requirement of  that
commission   the secretary  that development rights
be acquired, a reference to  such   that 
certification or requirement.
   (3) A reference to the statute that authorizes the plaintiff to
acquire the property by eminent domain. Specification of the
statutory authority may be in the alternative and may be
inconsistent.
   (e) A map or diagram portraying as far as practicable the property
described in the complaint and showing its location in relation to
the project for which it is to be taken.
  SEC. 2.  Section 14074 of the Corporations Code is amended to read:

   14074.  The agency shall enter into an agreement with the 
California Energy Extension Service of the Office of Planning and
Research   Department of Energy  to assist small
business owners in reducing their energy costs through low interest
loans and by providing assistance and information.
  SEC. 3.  Section 17910.1 of the Education Code is amended to read:
   17910.1.  As used in this part, the following terms have the
following meanings: 
   (a) "Commission" means the State Energy Resources Conservation and
Development Commission.  
   (b) 
    (a)  "Superintendent" means the Superintendent of Public
Instruction. 
   (c) 
    (b)  "Fund" means the Katz Schoolbus Fund created
pursuant to Section 17911. 
   (d) 
    (c)  "Department" means the Department of the California
Highway Patrol. 
   (e)
    (d)  "Program" means the Katz Safe Schoolbus Clean Fuel
Efficiency Demonstration Program. 
   (f) 
    (e)  "Schoolbus" means a schoolbus, as defined in
Section 545 of the Vehicle Code, which is Type 1 and publicly owned.

   (g) 
    (f)  "Local educational agency" means any of the
following:
   (1) A school district.
   (2) A county office of education.
   (3) A regional occupational program or center.
   (4) A joint powers agency  which   that 
operates publicly owned schoolbuses.
  SEC. 4.  Section 17911.2 of the Education Code is amended to read:
   17911.2.  The  commission   Department of
Energy  shall determine the local educational agencies that are
to receive replacement schoolbuses for participation in the program.
  SEC. 5.  Section 17911.3 of the Education Code is amended to read:
   17911.3.  In determining which candidate schoolbuses will be
selected for replacement, the  commission  
Department of Energy  shall first, in coordination with the
department and the superintendent, determine which local educational
agencies meet the demonstration project criteria.
  SEC. 6.  Section 17911.4 of the Education Code is amended to read:
   17911.4.  All candidate schoolbuses selected by the 
commission   Department of Energy  for replacement
shall be inspected by the department to determine all of the
following criteria:
   (a) The dates of manufacture of the schoolbuses. The schoolbuses
shall have been manufactured prior to April 1, 1977, and shall have
been certified during the prior school year pursuant to Section 2807
of the Vehicle Code.
   (b) The total accumulated mileage of each candidate schoolbus, as
supported by the owner's records and records of the department. Any
records maintained by the superintendent may also be considered in
determining the true accumulated mileage of a candidate schoolbus.
Only mileage accumulated on the candidate schoolbus during usage by
the applicant district may be considered by the commission as mileage
under this subdivision.
   (c) The average number of miles per day each candidate schoolbus
traveled during the prior school year and to date during the current
school year, as evidenced by the owner's records. Any records
maintained by the department or by the superintendent may also be
considered in determining the true average daily miles of a candidate
schoolbus.
   (d) The dates of each of the last three annual certifications and
the odometer reading for each of those dates.
  SEC. 7.  Section 17911.6 of the Education Code is amended to read:
   17911.6.  Local educational agencies may submit a statement
describing special circumstances  which   that
 are applicable to a qualified candidate schoolbus, such as the
unavailability of repair or replacement parts, or any necessary
chassis modifications requiring the approval of the manufacturer of
the chassis, as required by regulations of the department, with its
application for a replacement schoolbus. The  commission
  Department of Energy  may consider those special
circumstances in determining the local educational agencies that are
to receive replacement schoolbuses.
  SEC. 8.  Section 17912 of the Education Code is amended to read:
   17912.  The demonstration program established by this chapter
shall be designed and administered by the  commission,
  Department of Energy,  with the advice and
consultation of the department and the superintendent. The 
commission   Department of Energy  shall insure
that fuel economy and exhaust emissions are monitored as a part of
the demonstration, and shall ensure that at least 35 percent of the
vehicles are powered by methanol or other low-emission, clean-burning
fuels, unless the  commission   Department of
Energy  determines,  within 18 months of the effective
date of this act   on or before March 26, 1990  ,
that the use of these funds for clean burning fuel projects is
infeasible. The  commission   Department of
Energy  shall, within 30 days of making that determination,
submit a report to the Legislature explaining its determination with
respect to the feasibility or infeasibility of the project. The field
demonstration shall be in accordance with State Energy Conservation
Program guidelines.
  SEC. 9.  Section 17912.2 of the Education Code is amended to read:
   17912.2.  When a local educational agency accepts a replacement
schoolbus, it shall also agree to participate in the demonstration
program. That participation shall include maintaining records of
mileage and fuel consumption, and reporting that information to the
 commission   Department of Energy  in a
timely manner. The  commission   Department of
Energy  shall establish a procedure and requirement for
participation in the demonstration program. All vehicles acquired
under the demonstration program, at a minimum, shall meet all
applicable laws and regulations, including those related to their
acquisition by school districts, operation, fuel efficiency, air
emissions, and safety.
  SEC. 10.  Section 17925 of the Education Code is amended to read:
   17925.  Prior to distributing any state funds pursuant to this
part, the Superintendent of Public Instruction shall consult with the
 State Energy Resources Conservation and Development
Commission   Department of Energy  to avoid
duplication or overlap with appropriations from the Katz Schoolbus
Fund, created pursuant to Section 17911.
  SEC. 11.  Section 41304 of the Education Code is amended to read:
   41304.  (a) There is appropriated annually from the Driver
Training Penalty Assessment Fund to the General Fund in the State
Treasury and from the General Fund to the  California Energy
Extension Service of the Office of Planning and Research 
 Department of Energy  a sum as necessary to establish and
maintain a unit for driver instruction within the State Department of
Education as set forth in Section 41904.
   (b) In addition, subject to Section 41305, there shall be
appropriated from the Driver Training Penalty Assessment Fund to the
General Fund, then to the State School Fund each fiscal year, the sum
the Superintendent of Public Instruction certifies as necessary to
reimburse on a quarterly basis for each current fiscal year school
districts, county superintendents of schools, the Department of
 the Youth Authority   Corrections and
Rehabilitation, Division of Juvenile Facilities  , and the State
Department of Education for the actual cost of instructing pupils in
the operation of motor vehicles.
   The amount shall not exceed ninety-seven dollars ($97) per pupil
instructed in the laboratory phase of driver education in accordance
with the rules and regulations of the State Board of Education.
   (c) Subject to Section 41305, there shall also be appropriated
from the Driver Training Penalty Assessment Fund the sum the
Superintendent of Public Instruction shall certify as necessary to
reimburse on a quarterly basis for each current fiscal year school
districts, county superintendents of schools, the Department of
 the Youth Authority   Corrections and
Rehabilitation, Division of Juvenile Facilities  , and the State
Department of Education for the actual cost of replacing vehicles
and simulators used exclusively in the laboratory phase of driver
education programs, but the amount shall not exceed three-fourths of
that part of the actual cost of instructing pupils in the laboratory
phase of driver education which is: (1) in excess of ninety-seven
dollars ($97) per pupil instructed, and (2) expended by the district,
the county superintendent of schools, the Department of  the
Youth Authority   Corrections and Rehabilitation,
Division of Juvenile Facilities  , and the State Department of
Education in replacing the vehicles and simulators. Reimbursement for
vehicles shall be computed for only that portion of the total
mileage used exclusively in the laboratory phase of driver education
programs.
   (d) In addition, subject to Section 41305, there shall be provided
from the Petroleum Violation Escrow Account to the General Fund,
then to the State School Fund each fiscal year the sum the
Superintendent of Public Instruction certifies as necessary to
reimburse on a quarterly basis for each current fiscal year school
districts, county superintendents of schools, the Department of
 the Youth Authority   Corrections and
Rehabilitation, Division of Juvenile Facilities  , and the State
Department of Education for the costs of fitting automobile driver
training vehicles with the instrumentation required under Section
51854 and to reimburse on a quarterly basis for each current fiscal
year school districts for the costs of transferring instrumentation
providing instructional information on fuel consumption and vehicle
fuel efficiency from one automobile driver training vehicle to
another under Section 51854.
   (e) In addition, subject to Section 41305, there shall be
appropriated from the Petroleum Violation Escrow Account to the
Driver Training Penalty Assessment Fund and from the Driver Training
Penalty Assessment Fund to the General Fund, then to the
Superintendent of Public Instruction each fiscal year the sum the
Superintendent of Public Instruction certifies as necessary to
reimburse on a quarterly basis for each current fiscal year the State
Department of Education for the costs of workshops conducted by the
department under Section 51854.
   (f) For purposes of computing reimbursement, whenever a school
district, a county superintendent of schools, the Department of
 the Youth Authority   Corrections and
Rehabilitation, Division of Juvenile Facilities  , or the State
Department of Education replaces a driver training vehicle or
simulator purchased by the district with a vehicle or simulator that
is a gift or loan, the purchase price of the new or acquired
equipment shall be deemed to be the market value of the vehicle or
simulator acquired through a gift or loan.
   A simulator is any device approved by the State Department of
Education to be used in classrooms for purposes of laboratory
instruction under simulated driving conditions.
  SEC. 12.  Section 32208 of the Financial Code is repealed. 

   32208.  "Energy Commission" means the California Energy Resources
Conservation and Development Commission. 
  SEC. 13.  Section 32320 of the Financial Code is amended to read:
   32320.  Except as provided in Sections 32325 and 32352.5, the
board of directors of the corporation shall consist of  six
  five  members,  two   one
 official and four public directors.
  SEC. 14.  Section 32321 of the Financial Code is amended to read:
   32321.  (a) The official members of the board shall be:
 
   (1) A member of the Governor's cabinet, or his or her designee.
 
   (2) One member of the Energy Commission, selected and appointed by
the members of the Energy Commission.  
   (a) The official member of the board shall be a member of the
Governor's cabinet, or his or her designee. 
   (b) The public members of the board shall be:
   (1) One member selected and appointed by the Senate  Rules
 Committee  on Rules  .
   (2) One member selected and appointed by the Speaker of the
Assembly.
   (3) Two members selected and appointed by the Governor as follows:

   (A) One member with a minimum three years' experience as an owner,
partner, officer, or employee of a California-based small business.
   (B) One member with a minimum three years' experience as an
officer or employee of a financial institution.
  SEC. 15.  Section 32322 of the Financial Code is amended to read:
   32322.  (a) The  terms   term  of 
the  official  members   member  of
the board shall coincide with  their   his or
her  official  terms   term  of office
 , except in the case of the member selected and appointed
by the members of the Energy Commission, who shall serve on the board
until he or she is no longer a member of the Energy Commission or
until he or she is replaced by a vote of the Energy Commission
 .
   (b) The public members of the board shall be appointed by the
 Rules   Senate  Committee  on Rules
 , Speaker, and Governor in such a manner that they shall hold
office for overlapping terms. At the time of the appointment of first
directors, the first term of the directors appointed by the 
Rules   Senate  Committee  on Rules  and
Speaker shall be approximately two years. At the time of the
appointment of first directors, the first term of the directors
appointed by the Governor shall be approximately one year for one
director and approximately three years for two directors. Thereafter,
the terms of all public directors shall be three years. Directors
shall be eligible for reappointment for an unlimited number of terms.

   (c) A public director's tenure shall continue until his successor
has been appointed and has taken his position on the board.
   (d) In the case of public members, vacancies shall be filled by
appointment of the respective appointing authority for the unexpired
remainder of the term.
  SEC. 16.  Section 32940 of the Financial Code is amended to read:
   32940.  Guidelines for approving loan applications shall be
developed by the board on or before May 1, 1987. In developing those
guidelines, the board shall incorporate the recommendations adopted
by the  California Energy Commission  
Department of Energy  with respect to technical criteria
 which   that  are to be applied to
projects receiving loans from the corporation pursuant to this
chapter. The corporation may contract with the  Energy
Commission   Department of Energy  for the purpose
of developing technical guidelines.
  SEC. 17.  Section 32942 of the Financial Code is amended to read:
   32942.  Loans shall be approved according to criteria established
by a credit committee, chaired by the chief financial officer of the
corporation or that officer's designee. The other members of the
committee shall be the member of the board appointed by the 
Energy Commission   Department of Energy  and the
corporate president.
  SEC. 18.  Section 9100 of the Fish and Game Code is amended to
read:
   9100.  The  California Energy Extension Service of the
Office of Planning and Research   Department of Energy
 shall implement a revolving loan fund program to assist
low-income fishing fleet operators  to  reduce their energy
costs and conserve fuel by providing low-interest loans to those
operators.
  SEC. 19.  Section 9101 of the Fish and Game Code is amended to
read:
   9101.  Commencing January 1, 1994, and thereafter biennially, the
 California Energy Extension Service of the Office of
Planning and Research   Department of Energy  shall
report to the Legislature on the status of the loan program,
including the number and the amounts of loans made, the amount of
loans repaid, and a comparison of the ethnic background of the loan
recipients with the ethnic background of the low-income fishing fleet
operators.
  SEC. 20.  Section 11553 of the Government Code is amended to read:
   11553.  (a) Effective January 1, 1988, an annual salary of
eighty-one thousand six hundred thirty-five dollars ($81,635) shall
be paid to each of the following:
   (1) Chairperson of the Unemployment Insurance Appeals Board.
   (2) Chairperson of the Agricultural Labor Relations Board.
   (3) President of the Public Utilities Commission.
   (4) Chairperson of the Fair Political Practices Commission.

   (5) Chairperson of the Energy Resources Conservation and
Development Commission.  
   (6) 
    (5)  Chairperson of the Public Employment Relations
Board. 
   (7) 
    (6)  Chairperson of the Workers' Compensation Appeals
Board. 
   (8) 
    (7)  Administrative Director of the Division of
Industrial Accidents. 
   (9) 
    (8)  Chairperson of the State Water Resources Control
Board. 
   (10) 
    (9)  Chairperson and each member of the California
Integrated Waste Management Board.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
  SEC. 21.  Section 12802.5 of the Government Code is amended to
read:
   12802.5.  The Governor may, with respect to the  Natural 
Resources Agency, appoint  an Assistant   a
Deputy  Secretary for Energy Matters who may serve as Secretary
 for   of the Natural  Resources 
Agency  designee on the  California  Energy 
Resources Conservation and Development  Commission and 
appoint  an Assistant Secretary for Coastal Matters who may
serve as Secretary  for   of the Natural 
Resources  Agency  designee on the  State 
 California  Coastal Commission.
  SEC. 22.  Section 12805 of the Government Code is amended to read:
   12805.  (a) The Resources Agency is hereby renamed the Natural
Resources Agency. The Natural Resources Agency consists of the
departments of  Energy,  Forestry and Fire Protection,
Conservation, Fish and Game, Boating and Waterways, Parks and
Recreation, and Water Resources; the State Lands Commission; the
Colorado River Board; the San Francisco Bay Conservation and
Development Commission; the Central Valley Flood Protection Board;
 the Energy Resources Conservation and Development
Commission;  the Wildlife Conservation Board; the Delta
Protection Commission; the Native American Heritage Commission; the
California Conservation Corps; the California Coastal Commission; the
State Coastal Conservancy; the California Tahoe Conservancy; the
Santa Monica Mountains Conservancy; the Coachella Valley Mountains
Conservancy; the San Joaquin River Conservancy; the San Gabriel and
Lower Los Angeles Rivers and Mountains Conservancy; the Baldwin Hills
Conservancy; the San Diego River Conservancy; and the Sierra Nevada
Conservancy.
   (b) No existing supplies, forms, insignias, signs, or logos shall
be destroyed or changed as a result of changing the name of the
Resources Agency to the Natural Resources Agency, and those materials
shall continue to be used until exhausted or unserviceable.
  SEC. 23.  Section 14450 of the Government Code is amended to read:
   14450.  The department, in preparing its research and development
program, shall consult with other parts of the transportation
industry, including the private and public sectors, in order to
obtain maximum input designed to develop a balanced multimodal
research and development program. The department shall also consult
with affected state agencies, including the Department of Motor
Vehicles, the State Air Resources Board, the  State Energy
Resources Conservation and Development Commission,  
Department of Energy,  and the Department of the California
Highway Patrol.
  SEC. 24.  Section 14684 of the Government Code is amended to read:
   14684.  (a) The department, in consultation with the 
State Energy Resources Conservation and Development Commission,
  Department of Energy,  shall ensure that solar
energy equipment is installed, no later than January 1, 2007, on all
state buildings and state parking facilities, where feasible. The
department shall establish a schedule designating when solar energy
equipment will be installed on each building and facility, with
priority given to buildings and facilities where installation is most
feasible, both for state building and facility use and consumption
and local publicly owned electric utility use, where feasible.
   (b) Solar energy equipment shall be installed where feasible as
part of the construction of all state buildings and state parking
facilities that commences after December 31, 2002.
   (c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on a building is available, and if
the solar energy equipment is cost-effective.
   (d)  No part of this   This  section
 shall be construed to   does not  exempt
the state from any applicable fee or requirement imposed by the
Public Utilities Commission.
   (e) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1. For purposes of Chapter
3.5 (commencing with Section 11340) of Part 1, including, but not
limited to, Section 11349.6, the adoption of the regulations shall be
considered by the Office of Administrative Law to be necessary for
the immediate preservation of the public peace, health, safety, and
general welfare. Notwithstanding the 120-day limit specified in
subdivision (e) of Section 11346.1, the regulations shall be repealed
180 days after their effective date, unless the department complies
with Chapter 3.5 (commencing with Section 11340) of Part 1 as
provided in subdivision (e) of Section 11346.1.
   (f) For purposes of this section, the following terms have the
following meanings:
   (1) "Cost-effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent. The present
value cost of the solar energy equipment does not include the cost of
unrelated building components. The department, in making the present
value assessment, shall obtain interest rates, discount rates, and
consumer price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits.
   (2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in Section 9604 of the Public
Utilities Code.
   (3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for electricity generation.
  SEC. 25.  Section 14684.1 of the Government Code is amended to
read:
   14684.1.  (a) The department, in consultation with the 
State Energy Resources Conservation and Development Commission,
  Department of Energy,  shall ensure that solar
energy equipment is installed, no later than January 1, 2009, on all
state buildings, state parking facilities, and state-owned swimming
pools that are heated with fossil fuels or electricity, where
feasible. The department shall establish a schedule designating when
solar energy equipment will be installed on each building and
facility, with priority given to buildings and facilities where
installation is most feasible.
   (b) Solar energy equipment shall be installed, where feasible, as
part of the construction of all state buildings and state parking
facilities for which construction commences on or after January 1,
2008.
   (c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on or adjacent to a building is
available, if the solar energy equipment is cost-effective, and if
funding is available from the state or another source.
   (d)  Any solar energy equipment installed pursuant to this section
shall meet applicable standards and requirements imposed by state
and local permitting authorities, including, but not limited to, all
of the following:
   (1) Certification by the Solar Rating  and  Certification
Corporation, which is a nonprofit third party supported by the 
United States  Department of Energy, or any other
                                nationally recognized certification
agency.
   (2) All applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, such as
the Underwriters Laboratories.
   (3) Where applicable, the regulations adopted by the Public
Utilities Commission regarding safety and reliability.
   (e) This section does not exempt the state from the payment of any
applicable fee or requirement imposed by the Public Utilities
Commission.
   (f) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1. For purposes of that
chapter, including, but not limited to, Section 11349.6, the adoption
of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
Notwithstanding the 120-day limit specified in subdivision (e) of
Section 11346.1, the regulations shall be repealed 180 days after
their effective date, unless the department complies with Chapter 3.5
(commencing with Section 11340) of Part 1 as provided in subdivision
(e) of Section 11346.1.
   (g) Any solar energy equipment installed pursuant to this section
shall be subject to the provisions of the California Solar Rights Act
of 1978 (Chapter 1154 of the Statutes of 1978), as amended.
   (h) For purposes of this section, the following terms have the
following meanings:
   (1) "Cost-effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent. The present
value cost of the solar energy equipment does not include the cost of
unrelated building components. The department, in making the present
value assessment, shall obtain interest rates, discount rates, and
consumer price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits and the value of stable
energy costs.
   (2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in subdivision (d) of Section 9604
of the Public Utilities Code.
   (3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for the purpose of heat production, electricity
production, or simultaneous heat and electricity production.
  SEC. 26.  Section 15814.22 of the Government Code is amended to
read:
   15814.22.  The Department of General Services, in consultation
with the  California Energy Resources Conservation and
Development Commission   Department of Energy  and
other state agencies and departments, shall develop a multiyear plan,
to be updated biennially, with the goal of exploiting all
practicable and cost-effective energy efficiency measures in state
facilities. The department shall coordinate plan implementation
efforts  ,  and make recommendations to the Governor
and the Legislature to achieve energy efficiency goals for state
facilities.
  SEC. 27.  Section 15814.23 of the Government Code is amended to
read:
   15814.23.  The Department of General Services or each state agency
having jurisdiction shall ensure that all new state buildings are
designed and constructed to meet at least the minimum energy
efficiencies specified in standards adopted by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  pursuant to Section 25402 of the
Public Resources Code. In the design and construction of new state
buildings, the department or other responsible state agency shall
also consider additional state-of-the-art energy efficiency design
measures and equipment, beyond those required by the standards, that
are cost-effective and feasible.
  SEC. 28.  Section 15814.25 of the Government Code, as amended by
Section 48 of Chapter 193 of the Statutes of 2004, is amended and
renumbered to read:
    15814.25.   15814.24.1.   Energy
conservation measures eligible for financing by kindergarten through
grade 12 schools shall be limited to those measures recommended
pursuant to an energy audit provided by the  State Energy
Resources Conservation and Development Commission  
Department of Energy  under its existing authority.
  SEC. 29.  Section 15814.30 of the Government Code is amended to
read:
   15814.30.  (a) All new public buildings for which construction
begins after January 1, 1993, shall be models of energy efficiency
and shall be designed, constructed, and equipped with all energy
efficiency measures, materials, and devices that are feasible and
cost-effective over the life of the building or the life of the
energy efficiency measure, whichever is less.
   (b) In determining which energy efficiency measures, materials,
and devices are feasible and cost-effective over the life of the
building, the State Architect and the Department of General Services
shall consult with the  State Energy Resources Conservation
and Development Commission.   Department of Energy.

   (c) For purposes of this section, "cost-effective" means that
savings generated over the life of the building or the life of the
energy efficiency measure, whichever is less, shall exceed the cost
of purchasing and installing the energy efficiency measures,
materials, or devices by not less than 10 percent.
  SEC. 30.  Section 15814.34 of the Government Code is amended to
read:
   15814.34.  (a) The Legislature finds and declares all of the
following:
   (1) The state purchases a number of commodities, including, but
not limited to, lighting fixtures, heating, ventilation and
air-conditioning units, and copiers, that cumulatively account for a
significant portion of the energy consumed by state operations.
   (2) The state can realize significant energy savings and reduced
energy costs by purchasing brands or models of commonly used
commodities with low life cycle costs.
   (3) Commodities necessary for state operations may be purchased
directly by the state department or agency using the commodity, or
may be purchased by the Department of General Services on behalf of
other state departments or agencies.
   (4) In order to increase energy efficiency and reduce costs to the
taxpayers of the state, the state should make every reasonable
effort to identify and purchase those commodities that have the
lowest life cycle cost and meet the operational requirements of the
state.
   (b) The Department of General Services shall, on an ongoing basis,
do all of the following:
   (1) Identify commodities purchased by the department that,
individually or on a statewide basis, consume a significant amount of
energy.
   (2) For each commodity identified pursuant to paragraph (1),
determine the life cycle cost of the following:
   (A) The brand or model of the commodity purchased by the
department.
   (B) The brand or model of the commodity that has the lowest life
cycle cost, provided it is available for purchase by the state and
meets all operational specifications of the state.
   (3) Consult with the  Energy Resources Conservation and
Development Commission   Department of Energy  in
the development and revision of one or more methods of determining
the life cycle costs of commodities.
   (c) In order to assist other agencies and departments in
identifying commodities with the lowest life cycle costs, the
Department of General Services shall distribute the following to all
state agencies and departments:
   (1) A list of those commodities with the lowest life cycle costs,
as determined pursuant to paragraph (2) of subdivision (b).
   (2) The method or methods used by the Department of General
Services to determine the life cycle costs of commodities.
   (d) The method or methods used by the Department of General
Services to calculate the life cycle costs of commodities shall be
designed to be easily understood and used by purchasing agents and
other personnel in making purchasing decisions.
   (e) Notwithstanding any other provision of law, all state agencies
and departments shall purchase those commodities identified pursuant
to subdivision (b) that have the lowest life cycle costs and that
meet the applicable specifications, and shall make every reasonable
effort to identify and purchase other commodities with the lowest
life cycle costs.
   (f) "Life cycle cost" for the purposes of this section, means the
total cost of purchasing, installing, maintaining, and operating a
device or system during its reasonably expected life. It includes,
but is not necessarily limited to, capital costs, labor costs, energy
costs, and operating and maintenance costs.
  SEC. 31.  Section 66645 of the Government Code is amended to read:
   66645.  (a) In addition to the provisions of Sections 25302,
25500, 25507, 25508, 25514, 25516.1, 25519, 25523, and 25526 of the
Public Resources Code, the provisions of this section shall apply to
the commission and the  State Energy Resources Conservation
and Development Commission   Department of Energy 
with respect to matters within the statutory responsibility of the
latter.
   (b) After one or more public hearings, and prior to January 1,
1979, the commission shall designate those specific locations within
the Suisun Marsh, as defined in Section 29101 of the Public Resources
Code, or the area of jurisdiction of the commission, where the
location of a facility, as defined in Section 25110 of the Public
Resources Code, would be inconsistent with this title or Division 19
(commencing with Section 29000) of the Public Resources Code. The
following locations, however, shall not be so designated: (1) any
property of a utility that is used for such a facility or will be
used for the reasonable expansion thereof; (2) any site for which a
notice of intention to file an application for certification has been
filed pursuant to Section 25502 of the Public Resources Code prior
to January 1, 1978, and is subsequently approved pursuant to Section
22516 of the Public Resources Code; and (3) the area east of
Collinsville Road that is designated for water-related industrial use
on the Suisun Marsh Protection Plan Map. Each designation made
pursuant to this section shall include a description of the
boundaries of those locations, the provisions of this title or
Division 19 (commencing with Section 29000) of the Public Resources
Code with which they would be inconsistent, and detailed findings
concerning the significant adverse impacts that would result from
development of a facility in the designated area. The commission
shall consider the conclusions, if any, reached by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  in its most recently promulgated
comprehensive report issued pursuant to  former  Section
25309 of the Public Resources Code. The commission also shall request
the assistance of the  State Energy Resources Conservation
and Development Commission   Department of Energy 
in carrying out the requirements of this section. The commission
shall transmit a copy of its report prepared pursuant to this
subdivision to the  State Energy Resources Conservation and
Development Commission.   Department of Energy. 
   (c)  The commission shall revise and update the designations
specified in subdivision (b) not less than once every five years.
 The provisions of subdivision   Subdivision
 (b) shall not apply to any sites and related facilities
specified in any notice of intention to file an application for
certification filed pursuant to Section 25502 of the Public Resources
Code prior to designation of additional locations made by the
commission pursuant to this subdivision.
   (d) Whenever the  State Energy Resources Conservation and
Development Commission   Secretary of Energy 
exercises its siting authority and undertakes proceedings pursuant to
 the provisions of  Chapter 6 (commencing with
Section 25500) of Division 15 of the Public Resources Code with
respect to any  thermal  powerplant or transmission
line to be located, in whole or in part, within the Suisun Marsh or
the area of jurisdiction of the commission, the commission shall
participate in those proceedings and shall receive from the 
State Energy Resources Conservation and Development Commission
  Department of Energy  any notice of intention to
file an application for certification of a site and related
facilities within the Suisun Marsh or the area of jurisdiction of the
commission. The commission shall analyze each notice of intention
and, prior to commencement of the hearings conducted pursuant to
Section 25513 of the Public Resources Code, shall forward to the
 State Energy Resources Conservation and Development
Commission   Department of Energy  a written report
on the suitability of the proposed site and related facilities
specified in that notice. The commission's report shall contain a
consideration of, and findings regarding, the following:
   (1) If it is to be located within the Suisun Marsh, the
consistency of the proposed site and related facilities, with
 the provisions of  this title and Division 19
(commencing with Section 29000) of the Public Resources Code, the
policies of the Suisun Marsh Protection Plan  (as 
 , as  defined in Section 29113 of the Public Resources
 Code)   Code,  and the certified local
protection program  (as   , as  defined in
Section 29111 of the Public Resources  Code)  
Code,  if any.
   (2) If it is to be located within the area of jurisdiction of the
commission, the consistency of the proposed site and related
facilities with  the provisions of  this title and
the San Francisco Bay Plan.
   (3) The degree to which the proposed site and related facilities
could reasonably be modified so as to be consistent with this title,
Division 19 (commencing with Section 29000) of the Public Resources
Code, the Suisun Marsh Protection Plan, or the San Francisco Bay
Plan.
   (4)  Such   Any  other matters as the
commission deems appropriate and necessary to carry out Division 19
(commencing with Section 29000) of the Public Resources Code.
  SEC. 32.  Section 66646 of the Government Code is amended to read:
   66646.  Notwithstanding any other provision of this title, except
subdivisions (b) and (c) of Section 66645, and notwithstanding any
provision of Division 19 (commencing with Section 29000) of the
Public Resources Code, new or expanded  thermal 
electric generating plants may be constructed within the Suisun
Marsh, as defined in Section 29101 of the Public Resources Code, or
the area of jurisdiction of the commission, if the proposed site has
been determined, pursuant to  the provisions of 
Section 25516.1 of the Public Resources Code, by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  to have greater relative merit than
available alternative sites and related facilities for an applicant's
service area  which   that  have been
determined to be acceptable pursuant to  the provisions of
 Section 25516 of the Public Resources Code.
  SEC. 33.  Section 3805.5 of the Public Resources Code is repealed.

   3805.5.  "Commission" means the State Energy Resources
Conservation and Development Commission. 
  SEC. 34.  Section 3806.5 is added to the Public Resources Code, to
read:
   3806.5.  "Department" means the Department of Energy.
  SEC. 35.  Section 3808 of the Public Resources Code is amended to
read:
   3808.   (a)    "Geothermal resources" means
geothermal resources designated by the United States Geological
Survey or the Department of Conservation, or by both. 
   The department 
    (b)     The Department of Conservation
 shall periodically review, and revise as necessary, its
designation of geothermal resource areas and shall transmit any
changes to the  State Energy Resources Conservation and
Development Commission.   department. 
  SEC. 36.  Section 3810 of the Public Resources Code is amended to
read:
   3810.  (a) (1) "Award repayment or program reimbursement
agreement," including a "royalty agreement," as specified in
subdivision (b), means a method used at the discretion of the
 commission   department  to determine and
establish the terms of replenishment of program funds, including, at
a minimum, repayment of the award to provide for further awards under
this chapter. The award repayment or program reimbursement agreement
may provide that payments be made to the  commission
  department when the award recipient, affiliate of
the award recipient, or third party receives, through any kind of
transaction, an economic benefit from the project, invention, or
product developed, made possible, or derived, in whole or in part, as
a result of the award.
   (2) An award repayment or program reimbursement agreement shall
specify the method to be used by the  commission 
 department  to determine and establish the terms of
repayment and reimbursement of the award.
   (3) The  commission   department  may
require due diligence of the award recipient and may take any action
that is necessary to bring the project, invention, or product to
market.
   (4) Subject to the confidentiality requirements of Section 2505 of
Title 20 of the California Code of Regulations, the 
commission   department  may require access to
financial, sales, and production information, and to other agreements
involving transactions of the award recipient, affiliates of the
award recipient, and third parties, as necessary, to ascertain the
royalties or other payments due the  commission 
 department  .
   (b) A "royalty agreement" is an award repayment or program
reimbursement agreement and is subject to all of the following
conditions:
   (1) The royalty rate shall be determined by the 
commission   department  and shall not exceed 5
percent of the gross revenue derived from the project, invention, or
product.
   (2) The royalty agreement shall specify the method to be used by
the  commission   department  to determine
and establish the terms of payment of the royalty rate.
   (3) The  commission   department  shall
determine the duration of the royalty agreement and may negotiate a
collection schedule.
   (4) The  commission   department  , for
separate consideration, may negotiate and receive payments to provide
for an early termination of the royalty agreement.
   (c) (1) The  commission   department 
may require that the intellectual property developed, made possible,
or derived, in whole or in part, as a result of the award repayment
or program reimbursement agreement, revert to the state upon a
default in the terms of the award repayment or program reimbursement
agreement or royalty agreement.
   (2) The  commission   department  may
require advance notice of any transaction involving intellectual
property rights.
  SEC. 37.  Section 3822 of the Public Resources Code is amended to
read:
   3822.  (a) Thirty percent of the revenues received and deposited
in the Geothermal Resources Development Account shall be available
for expenditure by the  commission   department
 as grants or loans to local jurisdictions or private entities
without regard to fiscal years. These revenues shall be held by the
 commission   department  in the Local
Government Geothermal Resources Revolving Subaccount, which is hereby
created in the Geothermal Resources Development Account. Loan
repayments shall be deposited in the subaccount and shall be used for
making additional grants and loans pursuant to Section 3823.
   (b) No local jurisdiction shall be eligible to apply for a grant
or loan pursuant to this section unless its governing body approves
the application by resolution.
   (c) Each recipient of a grant or loan made pursuant to this
section shall establish, for the deposit of the revenues, an account
or fund that is separate from the other accounts and funds of the
recipient, and may expend the revenues only for the purposes
specified in this chapter.
   (d) The  commission   department  shall
make grants and loans pursuant to this section irrespective of
whether a local jurisdiction is a county of origin.
   (e) Any of the revenues that are not disbursed as grants or loans
pursuant to this section during the fiscal year received shall be
retained in the subaccount and may be disbursed as grants or loans
pursuant to this section in succeeding fiscal years.
   (f) (1) Any loan made under this section shall:
   (A) Not exceed 80 percent of the local jurisdiction's costs.
   (B) Be repaid together with interest within 20 years from receipt
of the loan funds.
   (2) Notwithstanding any other provision of law, the 
commission   department  shall, unless it
determines that the purposes of this chapter would be better served
by establishing an alternative interest rate schedule, periodically
set interest rates on the loans based on surveys of existing
financial markets and at rates not lower than the Pooled Money
Investment Account.
   (g) Any loan or grant made to a private entity under this section
shall (1) be matched with at least an equal investment by the
recipient, (2) provide tangible benefits, as determined by the
 commission   department  , to a local
jurisdiction, and (3) be approved by the city, county, or Indian
reservation within which the project is to be located.
   (h) The  commission   department  may
require an award repayment or program reimbursement agreement of any
recipient of a grant or loan made pursuant to this section.
  SEC. 38.  Section 3822.1 of the Public Resources Code is amended to
read:
   3822.1.  Notwithstanding any other provision of law, commencing
with the 1984-85 fiscal year and in each fiscal year thereafter, any
revenues not granted pursuant to Section 3822 remaining in the
Geothermal Resources Development Account and any revenues expected to
be received and disbursed during the 1984-85 fiscal year and in each
fiscal year thereafter shall be made a part of the Governor's
Budget. Projects approved by the  State Energy Resources
Conservation and Development Commission   department
 under this chapter shall be submitted for review and comment to
the Department of Finance, the Legislative Analyst, and the Joint
Legislative Budget Committee when the Legislature is in session.
After a 30-day period, the  commission  
department  shall execute the funding agreements. The 
commission   department  shall submit to the
Legislature by April 1 of each year, a list of projects, in priority
order, selected and approved during the previous year.
  SEC. 39.  Section 3822.2 of the Public Resources Code is amended to
read:
   3822.2.  (a) Notwithstanding any other provision of law, the
 State Energy Resources Conservation and Development
Commission   department  may expend funds, from
that portion of the Geothermal Resources Development Account used by
the  commission   department  for grants
and loans, to provide direct technical assistance to local
jurisdictions  which  that  are eligible
for grants and loans pursuant to Section 3822.
   (b) The total of all amounts expended pursuant to this section
shall not exceed 5 percent of all funds available under Section 3822
or one hundred thousand dollars ($100,000), whichever amount is less.

   (c) In making expenditures under this section, the 
commission   department  shall consider, but not be
limited to a consideration of, all of the following:
   (1) The availability of energy resource and technology
opportunities.
   (2) The project definition and likelihood of success.
   (3) Local needs and potential project benefits.
  SEC. 40.  Section 4799.16 of the Public Resources Code is amended
to read:
   4799.16.  The department shall coordinate its activities and
cooperate with the  State Energy Resources Conservation and
Development Commission   Department of Energy  in
the development of surveys, studies, and research concerning the
utilization of wood waste and forest growth for energy. The
department shall also coordinate its activities with other public and
private agencies to insure that the activities of the department and
 such   those  other agencies are not
duplicative and the maximum benefit occurs from actions taken by the
department to carry out its responsibilities pursuant to this
chapter.
  SEC. 41.  Section 6815.2 of the Public Resources Code is amended to
read:
   6815.2.  (a) Notwithstanding Section 6815.1, the commission may
take any oil, gas, or other hydrocarbons taken in kind by it,
pursuant to any lease or agreement, and exchange it, by competitive
bidding, for refined products  which   that
 shall be allocated to state agencies and to other public
agencies, if the  State Energy Resources Conservation and
Development Commission, established pursuant to Division 15
(commencing with Section 25000),   Department of Energy,
 after a public hearing, finds, in its judgment, that 
such   the  retention and allocation is necessary
to alleviate fuel shortage conditions or will effect a substantial
cost saving to the state.
   (b) The commission may make and enter into contracts or agreements
for exchange of  such  oil, gas, and other
hydrocarbons taken in kind for finished products required for use by
state and other public agencies.  Such   These
 contracts or agreements shall be entered into by competitive
bids. The commission may reject all bids  ,  if it
determines that they are not in the public interest.
   (c) The commission shall charge the state or other public agencies
allocated refined products the current market price of these
products including all applicable taxes. This price shall not be less
than the value of the oil, gas, or other hydrocarbons  which
  that  would have been received by the state if
not taken in kind. The revenue shall be subject to the terms and
conditions enumerated in Section 6217. The taxes generated by these
sales shall be distributed according to applicable provisions of the
Revenue and Taxation Code.
   (d) The refined products obtained from  such 
exchange contracts or agreements  entered into pursuant to this
section  shall be allocated to state agencies and to other
public agencies in accordance with the regulations  ,  which
shall be adopted, after a public hearing, by the  State
Energy Resources Conservation and Development
                          Commission.   Department of
Energy. 
   (e)  (1)    Notwithstanding Section 6815.1, if
the commission determines that it is in the best interests of the
state, it may allow another state or public agency to take in kind
oil, gas, or other hydrocarbons acquired by the commission.
    (2)    The commission shall charge the state or
other public agencies allocated in kind oil, gas, or other
hydrocarbons the current market price of these products, including
all applicable taxes. This price shall not be less than the value of
the oil, gas, or other hydrocarbons  which  
that  would have been received by the state if not taken in
kind. The commission may also charge for any transportation,
treatment, or other costs associated with taking the in kind royalty.
The revenue shall be subject to the terms and conditions enumerated
in Section 6217. The taxes generated by these sales shall be
distributed according to applicable provisions of the Revenue and
Taxation Code.
  SEC. 42.  Section 14584 of the Public Resources Code is amended to
read:
   14584.  (a) Operators of reverse vending machines or processors
may apply to the California Pollution Control Financing Authority for
financing pursuant to Section 44526 of the Health and Safety Code,
as a means of obtaining capital for establishment of a convenience
network. For purposes of Section 44508 of the Health and Safety Code,
"project" includes the establishing of a recycling location pursuant
to the division.
   (b) Corporations, companies, or individuals may apply for loan and
grant funds from the Energy Technologies Research, Development, and
Demonstration Account specified in Section 25683 by applying to the
 State Energy Resources Conservation and Development
Commission   Department of Energy  for the purpose
of demonstrating equipment for enhancing recycling opportunities.
  SEC. 43.  Section 21080 of the Public Resources Code is amended to
read:
   21080.  (a) Except as otherwise provided in this division, this
division shall apply to discretionary projects proposed to be carried
out or approved by public agencies, including, but not limited to,
the enactment and amendment of zoning ordinances, the issuance of
zoning variances, the issuance of conditional use permits, and the
approval of tentative subdivision maps unless the project is exempt
from this division.
   (b) This division does not apply to any of the following
activities:
   (1) Ministerial projects proposed to be carried out or approved by
public agencies.
   (2) Emergency repairs to public service facilities necessary to
maintain service.
   (3) Projects undertaken, carried out, or approved by a public
agency to maintain, repair, restore, demolish, or replace property or
facilities damaged or destroyed as a result of a disaster in a
disaster-stricken area in which a state of emergency has been
proclaimed by the Governor pursuant to Chapter 7 (commencing with
Section 8550) of Division 1 of Title 2 of the Government Code.
   (4) Specific actions necessary to prevent or mitigate an
emergency.
   (5) Projects  which   that  a public
agency rejects or disapproves.
   (6) Actions undertaken by a public agency relating to any 
thermal  powerplant site or facility, including the
expenditure, obligation, or encumbrance of funds by a public agency
for planning, engineering, or design purposes, or for the conditional
sale or purchase of equipment, fuel, water (except groundwater),
steam, or power for a  thermal  powerplant, if the
powerplant site and related facility will be the subject of an
environmental impact report, negative declaration, or other document,
prepared pursuant to a regulatory program certified pursuant to
Section 21080.5, which will be prepared by the  State Energy
Resources Conservation and Development Commission,  
Department of Energy,  by the Public Utilities Commission, or by
the city or county in which the powerplant and related facility
would be located if the environmental impact report, negative
declaration, or document includes the environmental impact, if any,
of the action described in this paragraph.
   (7) Activities or approvals necessary to the bidding for, hosting
or staging of, and funding or carrying out of, an Olympic games under
the authority of the International Olympic Committee, except for the
construction of facilities necessary for the Olympic games.
   (8) The establishment, modification, structuring, restructuring,
or approval of rates, tolls, fares, or other charges by public
agencies  which   that  the public agency
finds are for the purpose of (A) meeting operating expenses,
including employee wage rates and fringe benefits, (B) purchasing or
leasing supplies, equipment, or materials, (C) meeting financial
reserve needs and requirements, (D) obtaining funds for capital
projects necessary to maintain service within existing service areas,
or (E) obtaining funds necessary to maintain those intracity
transfers as are authorized by city charter. The public agency shall
incorporate written findings in the record of any proceeding in which
an exemption under this paragraph is claimed setting forth with
specificity the basis for the claim of exemption.
   (9) All classes of projects designated pursuant to Section 21084.
   (10) A project for the institution or increase of passenger or
commuter services on rail or highway rights-of-way already in use,
including modernization of existing stations and parking facilities.
   (11) A project for the institution or increase of passenger or
commuter service on high-occupancy vehicle lanes already in use,
including the modernization of existing stations and parking
facilities.
   (12) Facility extensions not to exceed four miles in length
 which   that  are required for the
transfer of passengers from or to exclusive public mass transit
guideway or busway public transit services.
   (13) A project for the development of a regional transportation
improvement program, the state transportation improvement program, or
a congestion management program prepared pursuant to Section 65089
of the Government Code.
   (14) Any project or portion thereof located in another state
 which   that  will be subject to
environmental impact review pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) or similar state
laws of that state. Any emissions or discharges that would have a
significant effect on the environment in this state are subject to
this division.
   (15) Projects undertaken by a local agency to implement a rule or
regulation imposed by a state agency, board, or commission under a
certified regulatory program pursuant to Section 21080.5. Any
site-specific effect of the project  which  
that  was not analyzed as a significant effect on the
environment in the plan or other written documentation required by
Section 21080.5 is subject to this division.
   (c) If a lead agency determines that a proposed project, not
otherwise exempt from this division, would not have a significant
effect on the environment, the lead agency shall adopt a negative
declaration to that effect. The negative declaration shall be
prepared for the proposed project in either of the following
circumstances:
   (1) There is no substantial evidence, in light of the whole record
before the lead agency, that the project may have a significant
effect on the environment.
   (2) An initial study identifies potentially significant effects on
the environment, but (A) revisions in the project plans or proposals
made by, or agreed to by, the applicant before the proposed negative
declaration and initial study are released for public review would
avoid the effects or mitigate the effects to a point where clearly no
significant effect on the environment would occur, and (B) there is
no substantial evidence, in light of the whole record before the lead
agency, that the project, as revised, may have a significant effect
on the environment.
   (d) If there is substantial evidence, in light of the whole record
before the lead agency, that the project may have a significant
effect on the environment, an environmental impact report shall be
prepared.
   (e) (1) For the purposes of this section and this division,
substantial evidence includes fact, a reasonable assumption
predicated upon fact, or expert opinion supported by fact.
   (2) Substantial evidence is not argument, speculation,
unsubstantiated opinion or narrative, evidence that is clearly
inaccurate or erroneous, or evidence of social or economic impacts
that do not contribute to, or are not caused by, physical impacts on
the environment.
   (f) As a result of the public review process for a mitigated
negative declaration, including administrative decisions and public
hearings, the lead agency may conclude that certain mitigation
measures identified pursuant to paragraph (2) of subdivision (c) are
infeasible or otherwise undesirable. In those circumstances, the lead
agency, prior to approving the project, may delete those mitigation
measures and substitute for them other mitigation measures that the
lead agency finds, after holding a public hearing on the matter, are
equivalent or more effective in mitigating significant effects on the
environment to a less than significant level and that do not cause
any potentially significant effect on the environment. If those new
mitigation measures are made conditions of project approval or are
otherwise made part of the project approval, the deletion of the
former measures and the substitution of the new mitigation measures
shall not constitute an action or circumstance requiring
recirculation of the mitigated negative declaration.
   (g)  Nothing in this   This  section
 shall   does not  preclude a project
applicant or any other person from challenging, in an administrative
or judicial proceeding, the legality of a condition of project
approval imposed by the lead agency. If, however, any condition of
project approval set aside by either an administrative body or court
was necessary to avoid or lessen the likelihood of the occurrence of
a significant effect on the environment, the lead agency's approval
of the negative declaration and project shall be invalid and a new
environmental review process shall be conducted before the project
can be reapproved, unless the lead agency substitutes a new condition
that the lead agency finds, after holding a public hearing on the
matter, is equivalent to, or more effective in, lessening or avoiding
significant effects on the environment and that does not cause any
potentially significant effect on the environment.
  SEC. 44.  Section 25104 of the Public Resources Code is amended to
read:
   25104.  "Commission" means the  State Energy Resources
Conservation and Development   California Energy 
Commission.
  SEC. 45.  Section 25104.1 is added to the Public Resources Code, to
read:
   25104.1.  (a) "Department" means the Department of Energy.
   (b) "Office" means the Office of Energy Market Oversight.
  SEC. 46.  Section 25104.2 is added to the Public Resources Code, to
read:
   25104.2.  "Secretary" means the Secretary of Energy.
  SEC. 47.  Section 25106 of the Public Resources Code is amended to
read:
   25106.  "Adviser" means the  administrative  
public  adviser employed by the  commission 
 department  pursuant to Section  25217. 
 25217.1. 
  SEC. 48.  Section 25107 of the Public Resources Code is repealed.

   25107.  "Electric transmission line" means any electric powerline
carrying electric power from a thermal powerplant located within the
state to a point of junction with any interconnected transmission
system. "Electric transmission line" does not include any replacement
on the existing site of existing electric powerlines with electric
powerlines equivalent to such existing electric powerlines or the
placement of new or additional conductors, insulators, or accessories
related to such electric powerlines on supporting structures in
existence on the effective date of this division or certified
pursuant to this division. 
  SEC. 49.  Section 25107 is added to the Public Resources Code, to
read:
   25107.   "Electric transmission line" means any of the following
and any appurtenant facilities, including, but not limited to,
substations, switching stations, and voltage regulating facilities:
   (a) An electric power line carrying electric power from a
powerplant located within the state to a point of junction with any
interconnected transmission system. "Electric transmission line" does
not include any replacement on the existing site of existing
electric power lines with electric power lines equivalent to the
existing electric power lines or the placement of new or additional
conductors, insulators, or accessories related to the existing
electric power lines on supporting structures in existence on the
effective date of this division or certified pursuant to this
division.
   (b) An electric power line that is proposed to be built by a
merchant developer and that is either of the following:
   (1) Designed for immediate or eventual operation at a maximum
rated voltage of 200 kilovolts or greater.
   (2) Has a maximum rated voltage of 100 kilovolts or greater and
certification is sought following inclusion of that facility as an
element of the strategic plan adopted under Section 25324.
   (c) An electric power line that meets the criteria in subdivision
(b) and that is proposed to be built by a municipal utility district
that chooses to submit an application for certification to the
commission for the electric power line.
  SEC. 50.  Section 25110 of the Public Resources Code is amended to
read:
   25110.  "Facility" means any electric transmission line or
 thermal  powerplant, or both electric transmission
line and  thermal  powerplant, regulated according
to  the provisions of  this division.
  SEC. 51.  Section 25112 of the Public Resources Code is amended to
read:
   25112.  "Member" or "member of the commission" means a member of
the  State Energy Resources Conservation and Development
  California Energy  Commission  designated or
 appointed pursuant to Section  25200.  
25203. 
  SEC. 52.  Section 25113 of the Public Resources Code is repealed.

   25113.  "Notice" means the notice of intent, as further defined in
Chapter 6 (commencing with Section 25500), which shall state the
intention of an applicant to file an application for certification of
any site and related facility. 
  SEC. 53.  Section 25120 of the Public Resources Code is repealed.

   25120.  "Thermal powerplant" means any stationary or floating
electrical generating facility using any source of thermal energy,
with a generating capacity of 50 megawatts or more, and any
facilities appurtenant thereto. Exploratory, development, and
production wells, resource transmission lines, and other related
facilities used in connection with a geothermal exploratory project
or a geothermal field development project are not appurtenant
facilities for the purposes of this division.
   "Thermal powerplant" does not include any wind, hydroelectric, or
solar photovoltaic electrical generating facility. 
  SEC. 54.  Section 25120 is added to the Public Resources Code, to
read:
   25120.  "Powerplant" means a stationary or floating electrical
generating facility using any source of energy, with a generating
capacity of 50 megawatts or more, and any facilities appurtenant to
the generating facility. Exploratory, development, and production
wells, resource transmission lines, and other related facilities used
in connection with a geothermal exploratory project or a geothermal
field development project are not appurtenant facilities for the
purposes of this division.
  SEC. 55.  Section 25123 of the Public Resources Code is amended to
read:
   25123.  "Modification of an existing facility" means any
alteration, replacement, or improvement of equipment that results in
a 50-megawatt or more increase in the electric generating capacity of
an existing  thermal  powerplant or an increase of
25 percent in the peak operating voltage or peak kilowatt capacity of
an existing electric transmission line.
  SEC. 56.  The heading of Chapter 3 (commencing with Section 25200)
of Division 15 of the Public Resources Code is amended to read:
      CHAPTER 3.   STATE ENERGY RESOURCES CONSERVATION AND
DEVELOPMENT COMMISSION   DEPARTMENT OF ENERGY 


  SEC. 57.  Section 25200 of the Public Resources Code is repealed.

   25200.  There is in the Resources Agency the State Energy
Resources Conservation and Development Commission, consisting of five
members appointed by the Governor subject to Section 25204.

  SEC. 58.  Section 25200 is added to the Public Resources Code, to
read:
   25200.  (a) The Department of Energy is hereby created in state
government to be headed by the Secretary of Energy who shall be
appointed by, and hold office at the pleasure of, the Governor,
subject to Senate confirmation.
   (b) The Secretary of Energy shall serve as the principal advisor
to the Governor on, and shall assist the Governor in establishing,
major policy and program matters on electric power and other sources
of energy as related to renewable energy, energy conservation,
environmental protection, and other goals and policies established by
this division.
   (c) The Secretary of Energy shall have the power of a head of a
department pursuant to Chapter 2 (commencing with Section 11150) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (d) The Governor may appoint, and the Secretary of Energy shall
fix, the salary of an Assistant Secretary of Energy who shall serve
at the pleasure of the secretary.
   (e) Consistent with the powers set forth in Chapter 2 (commencing
with Section 12850) of Part 2.5 of Division 3 of Title 2 of the
Government Code, the Secretary of Energy shall organize the
department, with the approval of the Governor, in the manner he or
she deems necessary to properly conduct the operations of the
department. The secretary may employ legal counsel who shall advise
the department in connection with legal matters and litigation before
any boards, agencies, or courts of the state or federal government.
   (f) The department shall be responsible for the planning,
development, and implementation of all major aspects of the state
energy policy, including electricity.
   (g) On or before April 1, 2010, the Secretary of Energy shall
submit to the Legislature a proposal to recodify statutory provisions
related to the department, and any other appropriate provisions,
into an Energy Code.
  SEC. 59.  Section 25201 of the Public Resources Code is repealed.

   25201.  One member of the commission shall have a background in
the field of engineering or physical science and have knowledge of
energy supply or conversion systems; one member shall be an attorney
and a member of the State Bar of California with administrative law
experience; one member shall have background and experience in the
field of environmental protection or the study of ecosystems; one
member shall be an economist with background and experience in the
field of natural resource management; and one member shall be from
the public at large. 
  SEC. 60.  Section 25201 is added to the Public Resources Code, to
read:
   25201.  (a) The Department of Energy hereby succeeds to, and is
vested with, all the powers, duties, responsibilities, obligations,
liabilities, and jurisdiction of the following agencies, which shall
no longer exist, and shall be known as predecessor entities:
   (1) The State Energy Resources Conservation and Development
Commission, some of whose former functions shall be administrated by
the California Energy Commission within the department as provided by
law or directly by the Secretary of Energy.
   (2) California Consumer Power and Conservation Financing
Authority.
   (3) Electricity Oversight Board.
   (b) Any reference in any law or regulation to any of the
predecessor entities listed in subdivision (a) shall be deemed to
refer to the Department of Energy or the California Energy
Commission, as appropriate, unless the context requires otherwise.
  SEC. 61.  Section 25202 of the Public Resources Code is repealed.

   25202.  The Secretary of the Resources Agency and the President of
the Public Utilities Commission shall be ex officio, nonvoting
members of the commission, whose presence shall not be counted for a
quorum or for vote requirements. 
  SEC. 62.  Section 25202 is added to the Public Resources Code, to
read:
   25202.  In addition to the powers, duties, responsibilities, and
jurisdiction specified in Section 25201, the Department of Energy
hereby succeeds to, and is vested with, all the powers, duties,
responsibilities, obligations, liabilities, and jurisdiction of all
of the following:
   (a) The California Energy Extension Service of the Office of
Planning and Research.
   (b) The functions of the Department of Water Resources related to
the purchase and sales of electric power under Division 27
(commencing with Section 1308) of the Water Code and all other
related functions of the Department of Water Resources pursuant to
that division, including, but not limited to, the issuance and
repayment of revenue bonds and the establishment and revision of
revenue requirements.
   (c) All functions of the Energy Assessment Program or its
successor entity within the Department of General Services.
   (d) All functions of the Energy Services Programs or their
successor entities in the Office of the State Architect within the
Department of General Services.
  SEC. 63.  Section 25203 of the Public Resources Code is repealed.

   25203.  Each member of the commission shall represent the state at
large and not any particular area thereof, and shall serve on a
full-time basis. 
  SEC. 64.  Section 25203 is added to the Public Resources Code, to
read:
   25203.  (a) There is, in the state government, the California
Energy Commission, which is hereby created within the Department of
Energy.
   (b) The commission shall consist of all of the following:
   (1) The Secretary of Energy, who shall serve as the chair of the
commission.
   (2) Four public members with one member meeting each of the
following requirements:
   (A) A person having a background in the field of engineering or
physical science with knowledge in energy supply or conversion
systems.
   (B) A member of the State Bar of California with administrative
law experience.
   (C) A person having a background in environmental protection or
the study of ecosystems.
   (D) An economist with background and experience in the field of
natural resource management.
   (3) The president of the California Public Utilities Commission.
   (4) The chief operating officer of the California Independent
System Operator.
   (5) The Secretary of the Natural Resources Agency.
   (c) The president of the California Public Utilities Commission,
the chief operating officer of the California Independent System
Operator, and the Secretary of the Natural Resources Agency shall
serve as ex-officio, nonvoting members of the commission, whose
presence shall not be counted for a quorum or for vote requirements.
   (d) (1) The Governor shall appoint the public members of the
commission, subject to confirmation by the Senate, for a term of four
years. The public members shall serve staggered terms.
   (2) A vacancy shall be filled by the Governor within 30 days of
the date on which a vacancy occurs for the unexpired portion of the
term in which it occurs or for any new term of office. If the
Governor fails to make an appointment for a vacancy within the 30-day
period, the Senate Committee on Rules may make the appointment to
fill the vacancy for the unexpired portion of the term in which the
vacancy occurred or for any new term of office.
   (3) On or before January 31, 2010, the Governor shall appoint the
initial members of the commission. Every appointment made by the
Governor to the commission shall be subject to the advice and consent
of a majority of the members elected to the Senate.
   (4) The terms of office of the members of the commission shall be
for four years, except that the members first appointed to the
commission shall classify themselves by lot so that the term of
office of one member shall expire at the end of each one of the four
years following the effective date of this division. Any vacancy
shall be filled by the Governor within 30 days of the date on which a
vacancy occurs for the unexpired portion of the term in which it
occurs or for any new term of office.
   (5) Each board member holding office on December 31, 2009, shall
continue to serve until his or her successor is appointed and has
been qualified to hold office. The order of replacement shall be
determined by lot.
   (e) Each member of the commission shall represent the state at
large and not any particular area thereof, and shall serve on a
full-time basis.
   (f) The secretary may name a designee who may act in the place of
the secretary in hearing any matter before the commission, except on
any matter for which the secretary determines he or she may have a
conflict of interest in hearing a case. The participation of the
designee will count for quorum and voting purposes.
   (g) The commission hereby succeeds to, and is vested with, all
powers, duties, obligations, liabilities, responsibilities, and
jurisdiction of the predecessor State Energy Resources Conservation
and Development Commission set forth in Chapter 6 (commencing with
Section 25500).
   (h) Meetings of the commission shall be open to the public and
shall be conducted in accordance with the Bagley-Keene Open Meeting
Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1
of Division 3 of Title 2 of the Government Code).
   (i) The secretary may delegate to the commission the conduct of a
rulemaking, policy investigation, or quasi-adjudicatory proceeding or
other power or duty of the secretary if the secretary determines
that doing so would not conflict with other responsibilities of the
commission and that utilizing the procedures of the commission would
serve the public interest.
  SEC. 65.  Section 25204 of the Public Resources Code is repealed.


  25204.  The Governor shall appoint the members of the commission
within 30 days after the effective date of this division. Every
appointment made by the Governor to the commission shall be subject
to the advice and consent of a majority of the members elected to the
Senate. 
  SEC. 66.  Section 25204 is added to the Public Resources Code, to
read:
   25204.  (a) All regulations and orders adopted by an entity listed
in subdivision (a) of Section 25201 or an entity listed in Section
25202 with regard to functions of that entity described in that
section, and any of their predecessors in effect on or before January
1, 2010, shall remain in effect with respect to the programs and
functions for which they were adopted, and shall be fully enforceable
unless and until readopted, amended, or repealed, or until they
expire by their own terms.
   (b) Except as otherwise specified, a statute, law, rule, or
regulation now in force, or that may hereafter be enacted or adopted
that references an entity listed in subdivision (a) of Section 25201,
or an entity listed in Section 25202 with regard to functions of
that entity described in that section, or any of their predecessors
shall mean the Department of Energy.
   (c) An action by or against the entities listed in subdivision (a)
of Section 25201 or Section 25202, or any of their predecessors
shall not abate but, except as provided in Section 25227.3, shall
continue in the name of the Department of Energy and the department
shall be substituted for the entities and any of their predecessors
by the court where the action is pending. The substitution shall not
in any way affect the rights of the parties to the action.
   (d) With respect to the members of the California Energy
Commission other than public members appointed pursuant to paragraph
(2) of subdivision (b) of Section 25203 or continuing to serve
pursuant to paragraph (3) of subdivision (d) of Section 25203, the
rule in effect regarding ex parte communications shall be applicable
only as to communications regarding a matter pending before the
commission.
  SEC. 67.  Section 25205 of the Public Resources Code is amended to
read:
   25205.  (a)  No   A  person shall 
not  be a member of the commission  pursuant to paragraph
(2) of subdivision (b) of Section 25203  who, during the two
years prior to appointment on the commission, received any
substantial portion of his or her income directly or indirectly from
any electric utility, or who engages in sale or manufacture of any
major component of any facility  subject to licensing by the
commission  . A member of the commission shall not be employed
by any electric utility, applicant, or, within two years after he or
she ceases to be a member of the commission, by any person who
engages in the sale or manufacture of any major component of any
facility  subject to licensing by the commission  .
   (b) Except as provided in Section  25202,  
25203,  the members of the commission shall not hold any other
elected or appointed public office or position.
   (c) The members of the commission and all employees of the
commission shall comply with all applicable provisions of Section
19251 of the Government Code.
   (d) A person who is a member or employee of the commission shall
not participate personally and substantially as a member or employee
of the commission, through decision, approval, disapproval,
recommendation, the rendering of advice, investigation, or otherwise,
in a judicial or other proceeding, hearing, application, request for
a ruling, or other determination, contract, claim, controversy,
study, plan, or other particular matter in which, to his or her
knowledge, he or she, his or her spouse, minor child, or partner, or
any organization, except a governmental agency or educational or
research institution qualifying as a nonprofit organization under
state or federal income tax law, in which he or she is serving, or
has served as officer, director, trustee, partner, or employee while
serving as a member or employee of the commission or within two years
prior to his or her appointment as a member of the commission, has a
direct or indirect financial interest.
   (e) A person who is a partner, employer, or employee of a member
or employee of the commission shall not act as an attorney, agent, or
employee for any person other than the state in connection with any
judicial or other proceeding, hearing, application, request for a
ruling, or other determination, contract, claim, controversy, study,
plan, or other particular matter in which the commission is a party
or has a direct and substantial interest.
   (f)  The provisions of this   This  
 section shall not apply if the Attorney General finds that the
interest of the member or employee of the commission is not so
substantial as to be deemed likely to affect the integrity of the
services  which   that  the state may
expect from the member or employee.
   (g) Any   A  person who violates
 any provision of  this section is guilty of a
felony and shall be subject to a fine of not more than ten thousand
dollars ($10,000) or imprisonment in the state prison, or both.
   (h) The amendment of subdivision (d) of this section enacted by
the 1975-76 Regular Session of the Legislature does not constitute a
change in, but is declaratory of, existing law.
  SEC. 68.  Section 25205.5 is added to the Public Resources Code, to
read:
   25205.5.  A contract, lease, license, bond, or any other agreement
to which an entity listed in subdivision (a) of Section 25201, or an
entity listed in Section 25202 with regard to functions of that
entity described in that section, or any of their predecessors are a
party shall not be void or voidable by reason of this act, but shall
continue in full force and effect, with the Department of Energy
assuming all the rights, obligations, liabilities, and duties of the
entity and any of its predecessors. That assumption by the department
shall not in any way affect the rights of the parties to the
contract, lease, license, or agreement. Bonds issued by the entity or
any of its predecessors, on or before January 1, 2010, shall become
the indebtedness of any newly created entity. Any ongoing obligations
or responsibilities of the entity or any of its predecessors for
managing and maintaining bond issuances shall be transferred to the
newly created entity without impairment to any security contained in
the bond instrument.
  SEC. 69.  Section 25206 of the Public Resources Code is repealed.

   25206.  The terms of office of the members of the commission shall
be for five years, except that the members first appointed to the
commission shall classify themselves by lot so that the term of
office of one member shall expire at the end of each one of the five
years following the effective date of this division. Any vacancy
shall be filled by the Governor within 30 days of the date on which a
vacancy occurs for the unexpired portion of the term in which it
occurs or for any new term of office.
   If the Governor fails to make an appointment for any vacancy
within such 30-day period, the Senate Rules Committee may make the
appointment to fill the vacancy for the unexpired portion of the term
in which the vacancy occurred or for any new term of office, subject
to the provisions of Section 25204. 
  SEC. 70.  Section 25206 is added to the Public Resources Code, to
read:
   25206.  On and after January 1, 2010, the unexpended balance of
all funds available for use by the entities listed in subdivision (a)
of Section 25201, or the entities listed in Section 25202 for the
performance of functions of these entities described in that section,
or any of their predecessors in carrying out a function transferred
to the Department of Energy shall be available for use by the
department. Unexpended balances shall be utilized consistent with the
purposes for which they were appropriated. All books, documents,
records, and property of the entities shall be transferred to the
department.
  SEC. 71.  Section 25207 of the Public Resources Code is amended to
read:
   25207.   (a)    The  public  members of
the commission shall receive the salary provided for by Chapter 6
(commencing with Section 11550) of Part 1 of Division 3 of Title 2 of
the Government Code. 
   Each 
    (b)     Each  member of the commission
shall receive the necessary traveling and other expenses incurred in
the performance of his official duties. When necessary, the members
of the commission and its employees may travel within or without the
state.
  SEC. 72.  Section 25207.5 is added to the Public Resources Code, to
read:
   25207.5.  (a) An officer or employee of the entities listed in
subdivision (a) of Section 25201 or Section 25202 who is performing a
function transferred to the Department of Energy and who is serving
in the state civil service, other than as a temporary employee, shall
be transferred to the department. The status, position, and rights
of an officer or employee of the entities shall not be affected by
the transfer and shall be retained by the person as an officer or
employee of the department, as the case may be, pursuant to the State
Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code), except as to a
position that is exempt from civil service.
   (b) The Department of Energy shall have possession and control of
all records, pages, offices, equipment, supplies, moneys, funds,
appropriations, licenses, permits, agreements, contracts, claims,
judgments, land, and other property, real or personal, connected with
the administration of, or held for, the benefit or use of the
entities listed in subdivision (a) of Section 25201 or for the
performance of the functions listed in Section 25202.
  SEC. 73.  Section 25208 is added to the Public Resources Code, to
read:
   25208.  (a) All responsibilities of the Public Utilities
Commission that are transferred pursuant to subdivision (b) of
Section 1001 of the Public Utilities Code shall be transferred in an
expeditious and orderly manner to the Department of Energy or the
California Energy Commission, as the case may be. Resources,
including personnel, associated with responsibilities transferred to
the department shall also be transferred to the department in an
expeditious manner. The Secretary of Energy may allocate the
responsibilities transferred to the department by the Public
Utilities Commission among the divisions of the department.
   (b) Applications on file before the Public Utilities Commission on
or before January 1, 2010, may proceed to decision before the Public
Utilities Commission and the procedural rules and substantive
regulations of that agency shall apply until a final decision on the
application.
   (c) On and after January 1, 2010, all rules and orders in effect
with respect to the requirements of an application for certificate
under Section 1001 of the Public Utilities Code, including, but not
limited to, General Order 131-D of the Public Utilities Commission,
shall remain in effect and shall also be considered a rule of the
department. The secretary shall cause timely publication of all rules
that may be enumerated to effect a logical integration with other
rules of the department. Any subsequent modification of these rules
as they apply to the jurisdiction of the department shall be carried
out in conformance with the procedures of the department.
   (d) The commission and the Public Utilities Commission may, by
jointly adopted order, provide a mechanism for an applicant to move
for the transfer of an application pending before the Public
Utilities Commission for completion before the commission. The order
shall preserve the status and rights of any party to an existing
proceeding.
  SEC. 74.  Section 25212 of the Public Resources Code is amended to
read:
   25212.   Every two years the Governor shall designate a
chairman and   The Secretary of Energy may appoint a
 vice  chairman   chair  of the
commission from among its  public  members.
  SEC. 75.  Section 25214 of the Public Resources Code is amended to
read:
   25214.  The commission shall maintain its headquarters in the
County of Sacramento and may establish branch offices in 
such   the  parts of the state as the commission
deems necessary. The commission shall hold meetings at  such
  the  times and at  such  
the  places as shall be determined by it. All meetings and
hearings of the commission shall be open to the public, and
opportunity to be heard with respect to the subject of the hearings
shall be afforded to any person. Upon request, an interested party
may be granted reasonable opportunity to examine any witness
testifying at the hearing. The first meeting of the commission shall
be held within 30 days after the confirmation of the last member of
the commission pursuant to Section 25204. The Governor shall
designate the time and place for the first meeting of the commission.

  SEC. 76.  Section 25216.5 of the Public Resources Code is amended
to read:
   25216.5.  The  commission   department 
shall do all of the following:
   (a) Prescribe the form and content of applications for facilities;
conduct public hearings and take other actions to secure adequate
evaluation of applications; and formally act to approve or disapprove
applications, including specifying conditions under which approval
and continuing operation of any facility shall be permitted.
   (b) Prepare an integrated plan specifying actions to be taken in
the event of an impending serious shortage of energy, or a clear
threat to public health, safety, or welfare.
   (c) Evaluate policies governing the establishment of rates for
electric power and other sources of energy as related to energy
conservation, environmental protection, and other goals and policies
established in this division, and transmit recommendations for
changes in power-pricing policies and rate schedules to the Governor,
the Legislature, to the Public Utilities Commission, and to publicly
owned electric utilities.
   (d) Serve as a central repository within the state government for
the collection, storage, retrieval, and dissemination of data and
information on all forms of energy supply, demand, conservation,
public safety, research, and related subjects. The data and
information shall be derived from all sources, including, but not be
limited to, electric and gas utilities, oil and other energy
producing companies, institutions of higher education, private
industry, public and private research laboratories, private
individuals, and from any other source that the  commission
  department  determines is necessary to carry out
its objectives under this division. The  commission 
 department  may charge and collect a reasonable fee for
retrieving and disseminating any  such  information
to cover the cost of  such a   that 
service. Any funds received by the  commission  
department pursuant to this subdivision shall be deposited in
the account and are continuously appropriated for expenditure, by the
 commission,   department,  for purposes
of retrieving and disseminating any such information pursuant to this
section.
  SEC. 77.  Section 25217 of the Public Resources Code is repealed.

   25217.  The commission shall do all of the following:
   (a) Appoint an executive director with administration and fiscal
experience, who shall serve at its pleasure and whose duties and
salary shall be prescribed by the commission.
   (b) Employ and prescribe the duties of other staff members as
necessary to carry out the provisions of this division. Staff members
of the commission may participate in all matters before the
commission to the limits prescribed by the commission.
   (c) Employ legal counsel who shall advise the commission and
represent it in connection with legal matters and litigation before
any boards and agencies of the state or federal government. 

  SEC. 78.  Section 25217.1 of the Public Resources Code is amended
to read:
   25217.1.  The  commission   secretary 
shall nominate  and the Governor shall appoint for a term of
three years  a public adviser to the  commission
  department  who shall be an attorney admitted to
the practice of law in this state and who shall  serve at the
pleasure of the secretary   and shall  carry out the
provisions of Section 25222 as well as other duties prescribed by
this division or by the  commission. The adviser may be
removed from office only upon the joint concurrence of four
commissioners and the Governor.   secretary. 
  SEC. 79.  Section 25217.5 of the Public Resources Code is repealed.

   25217.5.  The chairman of the commission shall direct the adviser,
the executive director, and other staff in the performance of their
duties in conformance with the policies and guidelines established by
the commission. 
  SEC. 80.  Section 25218 of the Public Resources Code is amended to
read:
   25218.  In addition to other powers specified in this division,
the  commission   department  may do any of
the following:
   (a) Apply for and accept grants, contributions, and
appropriations.
   (b) Contract for professional services if such work or services
cannot be satisfactorily performed by its employees or by any other
state agency.
   (c) Be sued and sue.
   (d) Request and utilize the advice and services of all federal,
state, local, and regional agencies.
   (e) Adopt any rule or regulation, or take any action, it deems
reasonable and necessary to carry out the provisions of this
division.
   (f) Adopt rules and regulations, or take any action, it deems
reasonable and necessary to ensure the free and open participation of
any member of the staff in proceedings before the 
commission.   department. 
  SEC. 81.  Section 25219 of the Public Resources Code is amended to
read:
   25219.  As to any matter involving the federal government, its
departments or agencies, which is within the scope of the power and
duties of the  commission,   department, 
the commission   department  may represent
its interest or the interest of any county, city, state agency, or
public district upon its request, and to that end may correspond,
confer, and cooperate with the federal government, its departments or
agencies.
  SEC. 82.  Section 25220 of the Public Resources Code is amended to
read:
   25220.  The  commission   department 
may participate as a party, to the extent that it shall determine, in
any proceeding before any federal or state agency having authority
whatsoever to approve or disapprove any aspect of a proposed
facility, receive notice from any applicant of all applications and
pleadings filed subsequently by  such   those
 applicants in any of  such  those 
proceedings, and, by its request, receive copies of any of 
such   the  subsequently filed applications and
pleadings that it shall deem necessary.
  SEC. 83.  Section 25221 of the Public Resources Code is amended to
read:
   25221.   Upon   Except as provided in
Sections 341 and 341.4 of the Public Utilities Code, upon 
request of the  commission,   department, 
the Attorney General shall represent the  commission
  department  and the state in litigation
concerning affairs of the  commission,  
department,  unless the Attorney General represents another
state agency, in which case the  commission  
department  shall be authorized to employ other counsel.
  SEC. 84.  Section 25222 of the Public Resources Code is amended to
read:
   25222.  The adviser shall insure that full and adequate
participation by all interested groups and the public at large is
secured in the planning, site and facility certification, energy
conservation, and emergency allocation procedures provided in this
division. The adviser shall insure that timely and complete notice of
 department and  commission meetings and public hearings is
disseminated to all interested groups and to the public at large.
The adviser shall also advise  such   these
 groups and the public as to effective ways of participating in
the  commission's   department's and the
commission's  proceedings. The adviser shall recommend to the
 department and the  commission additional measures to
assure open consideration and public participation in energy
planning, site and facility certification, energy conservation, and
emergency allocation proceedings.
  SEC. 85.  Section 25223 of the Public Resources Code is amended to
read:
   25223.   The   (a)    
Except as provided in subdivision (b), the department and the 
commission shall make available any information filed or submitted
pursuant to this division under the provisions of the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7, Title 1 of the Government Code  ; provided,
however, that the   . 
    (b)     The department and the 
commission shall keep confidential any information submitted to the
Division of Oil and Gas of the Department of Conservation that the
division determines, pursuant to Section 3752, to be proprietary.
  SEC. 86.  Section 25224 of the Public Resources Code is amended to
read:
   25224.  The  commission   department 
and other state agencies shall, to the fullest extent possible,
exchange records, reports, material, and other information relating
to energy resources and conservation and power facilities siting, or
any areas of mutual concern, to the end that unnecessary duplication
of effort may be avoided.
  SEC. 87.  Section 25225 of the Public Resources Code is amended to
read:
   25225.  (a) Prior to expending any funds for any research,
development, or demonstration program or project relating to vehicles
or vehicle fuels, the  commission   department
 shall do both of the following, using existing resources:
   (1) Adopt a plan describing any proposed expenditure that sets
forth the expected costs and qualitative as well as quantitative
benefits of the proposed program or project.
   (2) Find that the proposed program or project will not duplicate
any other past or present publicly funded California program or
project. This paragraph is not intended to prevent funding for
programs or projects jointly funded with another public agency where
there is no duplication.
   (b) Within 120 days from the date of the conclusion of a program
or project subject to subdivision (a) that is funded by the 
commission,   department,  the  commission
  department  shall issue a public report that sets
forth the actual costs of the program or project, the results
achieved and how they compare with expected costs and benefits
determined pursuant to paragraph (1) of subdivision (a), and any
problems that were encountered by the program or project.
   (c) (1) This section does not apply to any funds appropriated for
research, development, or demonstration pursuant to a statute that
expressly specifies both of the following:
   (A) A vehicle technology or vehicle fuel  which 
 that  is the subject of the research, development, or
demonstration.
   (B) The purpose of, or anticipated products of, the research,
development, or demonstration.
   (2) This section does not apply to the Katz Safe Schoolbus Clean
Fuel Efficiency Demonstration Program (Part 10.7 (commencing with
Section 17910) of Division 1 of Title 1 of the Education Code).
  SEC. 88.  Section 25226 of the Public Resources Code is amended to
read:
   25226.  (a) The Energy Technologies Research, Development, and
Demonstration Account established under former Section 25683 is
hereby continued in existence, in the General Fund, to be
administered by the  commission   department
 for the purpose of carrying out Chapter 7.3 (commencing with
Section 25630) and Chapter 7.5 (commencing with Section 25650).
   (b) The Controller shall deposit in the account all money
appropriated to the account by the Legislature, plus accumulated
interest on that money, and money from loan repayments, interest, and
royalties pursuant to Sections 25630 and 25650, for use by the
 commission,   department,  upon
appropriation by the Legislature, for the purposes specified in
Chapter 7.3 (commencing with Section 25630) and Chapter 7.5
(commencing with Section 25650).
  SEC. 89.  Chapter 3.5 (commencing with Section 25227) is added to
Division 15 of the Public Resources Code, to read:
      CHAPTER 3.5.  OFFICE OF ENERGY MARKET OVERSIGHT


   25227.  In order to ensure that the interests of the people of
California are served, there is hereby created within the department,
the Office of Energy Market Oversight. Under the direction of the
Secretary of Energy, the office shall perform all of the following
functions:
   (a) Oversee the Independent System Operator.
   (b) Hear and decide appeals of majority decisions of the
Independent System Operator governing board, as they relate to
matters subject to exclusive state jurisdiction, as specified in
Section 25227.3.
   (c) Investigate any matter related to the wholesale market for
electricity to ensure that the interests of California's citizens and
consumers are served, protected, and represented in relation to the
availability of electric transmission and generation and related
costs.
   (d) Appear in all relevant proceedings before the Federal Energy
Regulatory Commission on behalf of California energy consumers and as
the representative of the state's energy policy.
   25227.1.  (a) Any reference in the law to the "Electricity
Oversight Board" shall mean the Office of Energy Market Oversight in
the Department of Energy, as successor to that board.
   (b) The Office of Energy Market Oversight may exercise any right
that exists in the name of the former Electricity Oversight Board and
may pursue and continue to final resolution any claim or right that
exists in the name of the Electricity Oversight Board. It may take an
action in its own name, or may maintain it in the name of the former
Electricity Oversight Board, as it determines will best preserve and
protect the interests of the public in those rights or claims.
   (c) An action initiated, joined, or pursued by the Office of
Energy Market Oversight shall not be considered an action by any
other office, division, or commission within the Department of Energy
unless specifically stated in a pleading. The office shall maintain
separation and procedures, as are necessary, to prevent any
                                   inappropriate sharing of personnel
or flow of proprietary information between its market monitoring and
investigation functions and any program or function within the
department that has a market interest.
   (d) Any pending litigation for which there could be a conflict if
combined with another program reorganized under the Department of
Energy, including, but not limited to, the Federal Energy Regulatory
Commission dockets EL02-60 and EL02-62, and any related appeals or
remands, shall be continued by the Office of Energy Market Oversight
in the name of the Electricity Oversight Board and maintained
separate from all other programs of the department. The office shall
report on the resolution of those cases any such case directly to the
legal affairs office of the Governor.
   (e) Other agencies that are parties to, or commenting agencies in,
matters before the Federal Energy Regulatory Commission, on and
after January 1, 2010, shall cooperate with the office to promote
coordination of the state's advocacy with respect to those matters.
   25227.2.  (a) The Office of Energy Market Oversight shall hear and
decide appeals of majority decisions of the Independent System
Operator governing board relating to matters that are identified in
subdivision (b) as they pertain to the Independent System Operator.
   (b) The following matters are subject to California's exclusive
jurisdiction:
   (1) Selections by California of governing board members, as
described in Section 345.1 of the Public Utilities Code.
   (2) Matters pertaining to retail electric service or retail sales
of electric energy.
   (3) Ensuring that the purposes and functions of the Independent
System Operator and Power Exchange are consistent with the purposes
and functions of California nonprofit public benefit corporations,
including duties of care and conflict of interest standards for
directors of the corporations.
   (4) State functions assigned to the Independent System Operator
and Power Exchange under state law.
   (5) Open meeting standards and meeting notice requirements.
   (6) Appointment of advisory representatives representing state
interests.
   (7) Public access to corporate records.
   (8) The amendment of bylaws relevant to these matters.
   (c) Only members of the Independent System Operator governing
board may appeal a majority decision of the Independent System
Operator related to any of the matters specified in subdivision (b)
to the Office of Energy Market Oversight.
   25227.3.  The Office of Energy Market Oversight may do all of the
following:
   (a) Accept appropriations, grants, or contributions from any
public source, private foundation, or individual.
   (b) Sue and be sued.
   (c) Contract with state, local, or federal agencies for services
or work required by the office.
   (d) Contract for or employ any services or work, including expert
witness and attorney services required by the office that in its
opinion cannot satisfactorily be performed by its staff, by other
subdivisions of the department, or by other state agencies.
   (e) Appoint advisory committees from members of other public
agencies and private groups or individuals.
   (f) Hold hearings at the times and places it may deem proper.
   (g) Issue subpoenas to compel the production of books, records,
papers, accounts, reports, and documents and the attendance of
witnesses.
   (h) Administer oaths.
   (i) Adopt or amend rules and regulations to carry out the purposes
and provisions of this chapter, and to govern the procedures of the
office.
   (j) Exercise any authority consistent with this chapter delegated
to it by a federal agency or authorized to it by federal law.
   (k) Under the direction of the secretary, make recommendations to
the Governor and the Legislature.
   () Participate in proceedings relevant to the purposes of this
chapter or to the purposes of Division 4.9 (commencing with Section
9600) of the Public Utilities Code or consistent with the policies of
the department, participate in activities to promote the formation
of interstate agreements to enhance the reliability and function of
the electricity system and the electricity market.
   (m) Do any and all other things necessary to carry out the
purposes of this chapter.
   25228.  The Office of Energy Market Oversight may adopt rules or
protective orders to protect the confidential status of market
sensitive information.
   25228.2.  (a) The Office of Energy Market Oversight in the
department succeeds to and is vested with all duties,
responsibilities, powers, jurisdiction, liabilities, and functions of
the Electricity Oversight Board, which is hereby abolished. Any
reference in any law to the duties, responsibilities, powers, and
functions of the Electricity Oversight Board, which no longer exists,
shall be considered a reference to the Office of Energy Market
Oversight unless the context otherwise requires.
   (b) All officers and employees of the Electricity Oversight Board
who, on January 1, 2010, are serving in the state civil service,
other than as temporary employees, shall be transferred to the
Department of Energy pursuant to Section 19050.9 of the Government
Code. The status, position, and rights of any officer or employee of
the board shall not be affected by the transfer and shall be retained
by the person as an officer or employee of the department, as the
case may be, pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), except as to a position that is exempt from civil
service.
   (c) As soon as practicable, the Secretary of Energy shall report
to the Department of Finance on whether the resources transferred to
the department are sufficient to ensure that all of the state's
interests can be adequately represented under subdivision (d) of
Section 25227. The Department of Finance shall assess whether the
consolidation of this function under the department allows the
transfer of any resources previously used to support this function
within any other agency to the department.
   25228.4.  The secretary may appoint, and fix the salary of, a
deputy who shall have charge of administering the affairs of the
Office of the Energy Market Oversight, including entering into
contracts, subject to policies of the department. Notwithstanding
Sections 11042 and 11043 of the Government Code, the office shall
appoint an attorney who shall advise and represent the office and the
People of the State of California as a party in any state or federal
action, proceeding, or litigation related to the purposes of this
chapter or to an action of the office and who shall perform generally
all the duties of attorney with respect to the office.
  SEC. 90.  Section 25301 of the Public Resources Code is amended to
read:
   25301.  (a) At least every two years, the  commission
  department  shall conduct assessments and
forecasts of all aspects of energy industry supply, production,
transportation, delivery and distribution, demand, and prices. The
 commission   department shall use these
assessments and forecasts to develop energy policies that conserve
resources, protect the environment, ensure energy reliability,
enhance the state's economy, and protect public health and safety. To
perform these assessments and forecasts, the  commission
  department  may require submission of demand
forecasts, resource plans, market assessments, and related outlooks
from electric and natural gas utilities, transportation fuel and
technology suppliers, and other market participants. These
assessments and forecasts shall be done in consultation with the
appropriate state and federal agencies including, but not limited to,
the Public Utilities Commission, the Office of Ratepayer Advocates,
the Air Resources Board,  the Electricity Oversight Board,
 the Independent System Operator, the Department of Water
Resources,  the California Consumer Power and Conservation
Financing Authority,  the Department of Transportation, and
the Department of Motor Vehicles.
   (b) In developing the assessments and forecasts prepared pursuant
to subdivision (a), the  commission   department
 shall do all of the following:
   (1) Provide information about the performance of energy
industries.
   (2) Develop and maintain the analytical capability sufficient to
answer inquiries about energy issues from government, market
participants, and the public.
   (3) Analyze and develop energy policies.
   (4) Provide an analytical foundation for regulatory and policy
decisionmaking.
   (5) Facilitate efficient and reliable energy markets.
  SEC. 91.  Section 25302 of the Public Resources Code is amended to
read:
   25302.  (a) Beginning November 1, 2003, and every two years
thereafter, the  commission   department 
shall adopt an integrated energy policy report. This integrated
report shall contain an overview of major energy trends and issues
facing the state, including, but not limited to, supply, demand,
pricing, reliability, efficiency, and impacts on public health and
safety, the economy, resources, and the environment. Energy markets
and systems shall be grouped and assessed in three subsidiary
volumes:
   (1) Electricity and natural gas markets.
   (2) Transportation fuels, technologies, and infrastructure.
   (3) Public interest energy strategies.
   (b) The  commission   department  shall
compile the integrated energy policy report prepared pursuant to
subdivision (a) by consolidating the analyses and findings of the
subsidiary volumes in paragraphs (1), (2), and (3) of subdivision
(a). The integrated energy policy report shall present policy
recommendations based on an indepth and integrated analysis of the
most current and pressing energy issues facing the state. The
analyses supporting this integrated energy policy report shall
explicitly address interfuel and intermarket effects to provide a
more informed evaluation of potential tradeoffs when developing
energy policy across different markets and systems.
   (c) The integrated energy policy report shall include an
assessment and forecast of system reliability and the need for
resource additions, efficiency, and conservation that considers all
aspects of energy industries and markets that are essential for the
state economy, general welfare, public health and safety, energy
diversity, and protection of the environment. This assessment shall
be based on determinations made pursuant to this chapter.
   (d) Beginning November 1, 2004, and every two years thereafter,
the  commission   department  shall prepare
an energy policy review to update analyses from the integrated
energy policy report prepared pursuant to subdivisions (a), (b), and
(c), or to raise energy issues that have emerged since the release of
the integrated energy policy report. The  commission
  department  may also periodically prepare and
release technical analyses and assessments of energy issues and
concerns to provide timely and relevant information for the Governor,
the Legislature, market participants, and the public.
   (e) In preparation of the report, the  commission
  department  shall consult with the following
entities: the Public Utilities Commission, the Office of Ratepayer
Advocates, the State Air Resources Board,  the Electricity
Oversight Board,  the Independent System Operator, the
Department of Water Resources  , the California Consumer
Power and Conservation Financing Authority,  the Department
of Transportation, and the Department of Motor Vehicles, and any
federal, state, and local agencies it deems necessary in preparation
of the integrated energy policy report. To assure collaborative
development of state energy policies, these agencies shall make a
good faith effort to provide data, assessment, and proposed
recommendations for review by the  commission.  
department. 
   (f) The  commission   department  shall
provide the report to the Public Utilities Commission, the Office of
Ratepayer Advocates, the State Air Resources Board,  the
Electricity Oversight Board,  the Independent System
Operator, the Department of Water Resources,  the California
Consumer Power and Conservation Financing Authority, and the
Department of Transportation. For the purpose of ensuring
consistency in the underlying information that forms the foundation
of energy policies and decisions affecting the state, those entities
shall carry out their energy-related duties and responsibilities
based upon the information and analyses contained in the report. If
an entity listed in this subdivision objects to information contained
in the report, and has a reasonable basis for that objection, the
entity shall not be required to consider that information in carrying
out its energy-related duties.
   (g) The  commission   department  shall
make the report accessible to state, local, and federal entities and
to the general public.
  SEC. 92.  Section 25303 of the Public Resources Code is amended to
read:
   25303.  (a) The  commission   department
 shall conduct electricity and natural gas forecasting and
assessment activities to meet the requirements of paragraph (1) of
subdivision (a) of Section 25302, including, but not limited to, all
of the following:
   (1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
   (2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth, including, but not
limited to, projected population growth, urban development,
industrial expansion and energy intensity of industries, energy
demand for different building types, energy efficiency, and other
factors influencing demand for electricity. With respect to
long-range forecasts of the demand for natural gas, the report shall
include an evaluation of average conditions, as well as best and
worst case scenarios, and an evaluation of the impact of the
increasing use of renewable resources on natural gas demand.
   (3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems, including, but not limited
to, natural gas production capability both in and out of state,
natural gas interstate and intrastate pipeline capacity, storage and
use, and western regional and California electricity and transmission
system capacity and use.
   (4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
   (5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end-user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
   (6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the  commission
  department  shall propose market structure
changes to improve performance.
   (7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
   (8) (A) Compilation and assessment of existing scientific studies
that have been performed by persons or entities with expertise and
qualifications in the subject of the studies to determine the
potential vulnerability to a major disruption due to aging or a major
seismic event of large baseload generation facilities, of 1,700
megawatts or greater.
   (B) The assessment specified in subparagraph (A) shall include an
analysis of the impact of a major disruption on system reliability,
public safety, and the economy.
   (C) The commission may work with other public entities and public
agencies, including, but not limited to, the California Independent
System Operator, the Public Utilities Commission, the Department of
Conservation, and the Seismic Safety Commission as necessary, to
gather and analyze the information required by this paragraph.
   (D) Upon completion and publication of the initial review of the
information required pursuant to this paragraph, the commission shall
perform subsequent updates as new data or new understanding of
potential seismic hazards emerge.
   (b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the  commission  
department  shall assess the current status of the following:
   (1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
   (A) Generation facility efficiency.
   (B) Air emission control technologies in use in operating plants.
   (C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
   (2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
   (c) In the absence of a long-term nuclear waste storage facility,
the  commission   department  shall assess
the potential state and local costs and impacts associated with
accumulating waste at California's nuclear powerplants. The 
commission   department  shall further assess other
key policy and planning issues that will affect the future role of
nuclear powerplants in the state. The  commission's 
 department's  assessment shall be adopted on or before
November 1, 2008, and included in the 2008 energy policy review
adopted pursuant to subdivision (d) of Section 25302.
  SEC. 93.  Section 25304 of the Public Resources Code is amended to
read:
   25304.  The  commission   department 
shall conduct transportation forecasting and assessment activities to
meet the requirements of paragraph (2) of subdivision (a) of Section
25302 including, but not limited to:
   (a) Assessment of trends in transportation fuels, technologies,
and infrastructure supply and demand and the outlook for wholesale
and retail prices for petroleum, petroleum products, and alternative
transportation fuels under current market structures and expected
market conditions.
   (b) Forecasts of statewide and regional transportation energy
demand, both annual and seasonal, and the factors leading to
projected demand growth including, but not limited to, projected
population growth, urban development, vehicle miles traveled, the
type, class, and efficiency of personal vehicles and commercial
fleets, and shifts in transportation modes.
   (c) Evaluation of the sufficiency of transportation fuel supplies,
technologies, and infrastructure to meet projected transportation
demand growth. Assessment of crude oil and other transportation fuel
feedstock supplies; in-state, national, and worldwide production and
refining capacity; product output storage availability; and
transportation and distribution systems capacity and use.
   (d) Assessments of the risks of supply disruptions, price shocks,
or other events and the consequences of these events on the
availability and price of transportation fuels and effects on the
state's economy.
   (e) Evaluation of the potential for needed changes in the state's
energy shortage contingency plans to increase production and
productivity, improve efficiency of fuel use, increase conservation
of resources, and other actions to maintain sufficient, secure, and
affordable transportation fuel supplies for the state.
   (f) Evaluation of alternative transportation energy scenarios, in
the context of least environmental and economic costs, to examine
potential effects of alternative fuels usage, vehicle efficiency
improvements, and shifts in transportation modes on public health and
safety, the economy, resources, the environment, and energy
security.
   (g) Examination of the success of introduction, prices, and
availability of advanced transportation technologies, low- or
zero-emission vehicles, and clean-burning transportation fuels,
including their potential future contributions to air quality, energy
security, and other public interest benefits.
   (h) Recommendations to improve the efficiency of transportation
energy use, reduce dependence on petroleum fuels, decrease
environmental impacts from transportation energy use, and contribute
to reducing congestion, promoting economic development, and enhancing
energy diversity and security.
  SEC. 94.  Section 25305 of the Public Resources Code is amended to
read:
   25305.  The  commission   department 
shall rely upon forecasting and assessments performed in accordance
with Sections 25301 to 25304, inclusive, as the basis for analyzing
the success of and developing policy recommendations for public
interest energy strategies. Public interest energy strategies
include, but are not limited to, achieving energy efficiency and
energy conservation; implementing load management; pursuing research,
development, demonstration, and commercialization of new
technologies; promoting renewable generation technologies; reducing
statewide greenhouse gas emissions and addressing the impacts of
climate change on California; stimulating California's energy-related
business activities to contribute to the state's economy; and
protecting and enhancing the environment. Additional assessments to
address public interest energy strategies shall include, but are not
limited to, all of the following:
   (a) Identification of emerging trends in energy efficiency in the
residential, commercial, industrial, agricultural, and transportation
sectors of the state's economy, including, but not limited to,
evaluation of additional achievable energy efficiency measures and
technologies. Identification of policies that would permit fuller
realization of the potential for energy efficiency, either through
direct programmatic actions or facilitation of the market.
   (b) Identification of emerging trends in the renewable energy
industry. In addition, the  commission  
department  shall evaluate progress in ensuring the operation of
existing facilities, and the development of new and emerging,
in-state renewable resources.
   (c) Identification of emerging trends in energy research,
development, and demonstration activities that advance science or
technology to produce public benefits.
   (d) Identification of progress in reducing statewide greenhouse
gas emissions and addressing the effects of climate change on
California.
  SEC. 95.  Section 25305.5 of the Public Resources Code is amended
to read:
   25305.5.  The commission   department 
shall include in its report prepared pursuant to Sections 25301 to
25304, inclusive, a description of international energy market
prospects and an evaluation of its export promotion activities, as
well as an assessment of the state of the California energy
technology and energy conservation industry's efforts to enter
foreign markets. The report shall also include recommendations for
state government initiatives to foster the California energy
technology and energy conservation industry's competition in world
markets.
  SEC. 96.  Section 25306 of the Public Resources Code is amended to
read:
   25306.  The  commission   department 
shall conduct workshops, hearings, and other forums to gain the
perspectives of the public and market participants for purposes of
the integrated energy policy report prepared pursuant to Section
25302 and the forecasting and assessments prepared pursuant to
Sections 25301, 25303, 25304, and 25305. The  commission
  department  shall include the comments, as well
as responses to those comments, of governmental agencies, industry
representatives, market participants, private groups, and any other
person concerning the commission's proposals and recommendations in
the docket for the integrated energy policy report.
  SEC. 97.  Section 25320 of the Public Resources Code is amended to
read:
   25320.  (a) The  commission   department
 shall manage a data collection system for obtaining information
necessary to develop the policy reports and analyses required by
Sections 25301 to 25307, inclusive, the energy shortage contingency
planning efforts in Chapter 8 (commencing with Section 25700), and to
support other duties of the  commission.  
department. 
   (b) The data collection system, adopted by regulation under
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and managed by the 
commission   department  shall:
   (1) Include a timetable for the submission of this information, so
that the integrated energy policy report required by Section 25302
can be completed in an accurate and timely manner.
   (2) Require a person to submit only information that is reasonably
relevant, and that the person can either be expected to acquire
through his or her market activities, or possesses or controls.
Information collected pursuant to this section shall relate to the
functional role of each category of market participant in that
industry and the consumers within that industry.
   (3) To the extent it satisfies the information needs of the
 commission,   department,  rely on the use
of estimates and proxies, to the
        maximum extent practicable, for some data elements using
survey and research techniques, while for other information it shall
obtain data from market participants using submissions consistent
with their accounting records. In determining whether to rely upon
estimates or participant provided data, the commission shall weigh
the burden of compliance upon industry participants and energy
consumers against the benefit of participant provided data for the
public interest.
   (4) To the extent it satisfies the information needs of the
 commission,   department,  rely on data,
to the maximum extent practicable, that is reported to other
government agencies or is otherwise available to the 
commission   department  .
   (c) Pursuant to the requirements of subdivision (b), the data
collection system for electricity and natural gas shall enumerate
specific requirements for each category of market participants,
including, but not limited to, private market participants, energy
service providers, energy service companies, natural gas marketers,
electric utility and natural gas utility companies, independent
generators, electric transmission entities, natural gas producers,
natural gas pipeline operators, importers and exporters of
electricity and natural gas, and specialized electric or natural gas
system operators. The  commission   department
 may also collect information about consumers' natural gas and
electricity use from their voluntary participation in surveys and
other research techniques.
   (d) Pursuant to the requirements of subdivision (b), the data
collection system for nonpetroleum fuels and transportation
technologies shall enumerate specific requirements for each category
of market participant, including, but not limited to, fuel importers
and exporters, fuel distributors and retailers, fuel pipeline
operators, natural gas liquid producers, and transportation
technology providers. The  commission  
department  may also collect information about consumers'
nonpetroleum fuel and transportation technology use from their
voluntary participation in surveys and other research techniques.
   (e) The  commission  department  shall
collect data for petroleum fuel pursuant to Chapter 4.5 (commencing
with Section 25350). The  commission  
department  may also collect information about consumers'
petroleum fuel use from consumers' participation in surveys and other
research techniques.
  SEC. 98.  Section 25321 of the Public Resources Code is amended to
read:
   25321.  In order to ensure timely and accurate compliance with the
data collection system adopted under Section 25320, the 
commission   department  may use any of the
following enforcement measures:
   (a) If  any   a  person fails to comply
with an applicable provision of the data collection system, the
 commission   department  shall notify the
person. If, after five working days from being notified of the
violation, the person continues to fail to comply, the person shall
be subject to a civil penalty, to be imposed by the 
commission   department  after a hearing that
complies with constitutional requirements.
   (1) The civil penalty shall not be less than five hundred dollars
($500) nor more than two thousand dollars ($2,000) for each category
of data the person did not provide and for each day the violation has
existed and continues to exist.
   (2) In the case of a person who willfully makes any false
statement, representation, or certification in any record, report,
plan, or other document filed with the  commission, 
 department,  the civil penalty shall not be less than five
hundred dollars ($500) nor more than two thousand dollars ($2,000)
per day applied to each day in the interval between the original due
date and the date when corrected information is submitted.
   (b) For the purposes of this section, "person" means, in addition
to the definition contained in Section 25116, any responsible
corporate officer.
   (c) Enforcement measures for petroleum and other fuels shall be
those contained in Section 25362.
  SEC. 99.  Section 25322 of the Public Resources Code is amended to
read:
   25322.  (a) The data collection system managed pursuant to Section
25320 shall include the following requirements regarding the
confidentiality of the information collected by the 
commission   department  :
   (1)  Any   A  person required to present
information to the commission pursuant to this section may request
that specific information be held in confidence. The 
commission   department  shall grant the request in
any of the following circumstances:
   (A) The information is exempt from disclosure under the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
   (B) The information satisfies the confidentiality requirements of
Article 2 (commencing with Section 2501) of Chapter 7 of Division 2
of Title 20 of the California Code of Regulations, as those
regulations existed on January 1, 2002.
   (C) On the facts of the particular case, the public interest
served by not disclosing the information clearly outweighs the public
interest served by disclosure of the information.
   (2) The  commission   department  may,
by regulation, designate certain categories of information as
confidential, which removes the obligation to request confidentiality
for that information.
   (3) Any confidential information pertinent to the responsibilities
of the  commission   department  specified
in this chapter that is obtained by another state agency, or the
California Independent System Operator or its successor, shall be
available to the  commission   department 
and shall be treated in a confidential manner.
   (4) Information presented to or developed by the 
commission   department  and deemed confidential
pursuant to this section shall be held in confidence by the 
commission   department  . Confidential information
shall be aggregated or masked to the extent necessary to assure
confidentiality if public disclosure of the specific information
would result in an unfair competitive disadvantage to the person
supplying the information.
   (b) Requests for records of information shall be handled as
follows:
   (1) If the  commission   department 
receives a written request to publicly disclose information that is
being held in confidence pursuant to paragraph (1) or (2) of
subdivision (a), the  commission   department
 shall provide the person making the request with written
justification for the confidential designation and a description of
the process to seek disclosure.
   (2) If the  commission   department 
receives a written request to publicly disclose a disaggregated or
unmasked record of information designated as confidential under
paragraph (1) or (2) of subdivision (a), notice of the request shall
be provided to the person that submitted the record. Upon receipt of
the notice, the person that submitted the record may, within five
working days of receipt of the notice, provide a written
justification of the claim of confidentiality.
   (3) The  commission   department  or its
designee shall rule on a request made pursuant to paragraph (2) on
or before 20 working days after its receipt. The  commission
  department  shall deny the request if the
disclosure will result in an unfair competitive disadvantage to the
person that submitted the information.
   (4) If the  commission   department
grants the request pursuant to paragraph (3), it shall withhold
disclosure for a reasonable amount of time, not to exceed 14 working
days, to allow the submitter of the information to seek judicial
review.
   (c)  No information   Information 
submitted to the  commission   department 
pursuant to this section is not  confidential if the person
submitting the information has made it public.
   (d) The  commission   department  shall
establish, maintain, and use appropriate security practices and
procedures to ensure that the information it has designated as
confidential, or received with a confidential designation from
another government agency, is protected against disclosure other than
that authorized using the procedures in subdivision (b). The
commission shall incorporate the following elements into its security
practices and procedures:
   (1)  Commission   Department  employees
shall sign a confidential data disclosure agreement providing for
various remedies, including, but not limited to, fines and
termination for wrongful disclosure of confidential information.
   (2)  Commission  Department  employees,
or contract employees of the  commission,  
department,  shall only have access to confidential information
when it is appropriate to their job assignments and if they have
signed a nondisclosure agreement.
   (3) Computer data systems that hold confidential information shall
include sufficient security measures to protect the data from
inadvertent or wrongful access by unauthorized  commission
  department  employees and the public.
   (e) Data collected by the  commission  
department  on petroleum fuels in Section 25320 shall be subject
to the confidentiality provisions of Sections 25364 to 25366,
inclusive.
  SEC. 100.  Section 25323 of the Public Resources Code is amended to
read:
   25323.   Nothing in this   This 
division  shall   does not  authorize the
 commission   department  in the
performance of its analytical, planning, siting, or certification
responsibilities to mandate a specified supply plan for any utility.
  SEC. 101.  Section 25324 of the Public Resources Code is amended to
read:
   25324.  The  commission,   department, 
in consultation with the Public Utilities Commission, the California
Independent System Operator, transmission owners, users, and
consumers, shall adopt a strategic plan for the state's electric
transmission grid using existing resources. The strategic plan shall
identify and recommend actions required to implement investments
needed to ensure reliability, relieve congestion, and meet future
growth in load and generation, including, but not limited to,
renewable resources, energy efficiency, and other demand reduction
measures. The plan shall be included in the integrated energy policy
report adopted on November 1, 2005, pursuant to subdivision (a) of
Section 25302.
  SEC. 102.  Section 25354 of the Public Resources Code is amended to
read:
   25354.  (a) Each refiner and major marketer shall submit
information each month to the  commission  
department  in  such   the  form and
extent as the  commission   department 
prescribes pursuant to this section. The information shall be
submitted within 30 days after the end of each monthly reporting
period and shall include the following:
   (1) Refiners shall report, for each of their refineries, feedstock
inputs, origin of petroleum receipts, imports of finished petroleum
products and blendstocks, by type, including the source of those
imports, exports of finished petroleum products and blendstocks, by
type, including the destination of those exports, refinery outputs,
refinery stocks, and finished product supply and distribution,
including all gasoline sold unbranded by the refiner, blender, or
importer.
   (2) Major marketers shall report on petroleum product receipts and
the sources of these receipts, inventories of finished petroleum
products and blendstocks, by type, distributions through branded and
unbranded distribution networks, and exports of finished petroleum
products and blendstocks, by type, from the state.
   (b) Each major oil producer, refiner, marketer, oil transporter,
and oil storer shall annually submit information to the 
commission   department  in  such 
 the  form and extent as the  commission 
 department  prescribes pursuant to this section. The
information shall be submitted within 30 days after the end of each
reporting period, and shall include the following:
   (1) Major oil transporters shall report on petroleum by reporting
the capacities of each major transportation system, the amount
transported by each system, and inventories thereof. The 
commission   department  may prescribe rules and
regulations that exclude pipeline and transportation modes operated
entirely on property owned by major oil transporters from the
reporting requirements of this section if the data or information is
not needed to fulfill the purposes of this chapter. The provision of
the information shall not be construed to increase or decrease any
authority the Public Utilities Commission may otherwise have.
   (2) Major oil storers shall report on storage capacity,
inventories, receipts and distributions, and methods of
transportation of receipts and distributions.
   (3) Major oil producers shall, with respect to thermally enhanced
oil recovery operations, report annually by designated oil field, the
monthly use, as fuel, of crude oil and natural gas.
   (4) Refiners shall report on facility capacity, and utilization
and method of transportation of refinery receipts and distributions.
   (5) Major oil marketers shall report on facility capacity and
methods of transportation of receipts and distributions.
   (c) Each person required to report pursuant to subdivision (a)
shall submit a projection each month of the information to be
submitted pursuant to subdivision (a) for the quarter following the
month in which the information is submitted to the 
commission   department  .
   (d) In addition to the data required under subdivision (a), each
integrated oil refiner (produces, refines, transports, and markets in
interstate commerce) who supplies more than 500 branded retail
outlets in California shall submit to the  commission
  department  an annual industry forecast for
Petroleum Administration for Defense, District V (covering Arizona,
Nevada, Washington, Oregon, California, Alaska, and Hawaii). The
forecast shall include the information to be submitted under
subdivision (a), and shall be submitted by March 15 of each year. The
 commission   department  may require
California-specific forecasts. However, those forecasts shall be
required only if the  commission   department
 finds them necessary to carry out its responsibilities.
   (e) The  commission   department  may by
order or regulation modify the reporting period as to any individual
item of information setting forth in the order or regulation its
reason for so doing.
   (f) The  commission   department  may
request additional information as necessary to perform its
responsibilities under this chapter.
   (g)  Any   A    person required
to submit information or data under this chapter, in lieu thereof,
may submit a report made to any other governmental agency, if:
   (1) The alternate report or reports contain all of the information
or data required by specific request under this chapter.
   (2) The person clearly identifies the specific request to which
the alternate report is responsive.
   (h) Each refiner shall submit to the  commission,
  department,  within 30 days after the end of each
monthly reporting period, all of the following information in such
form and extent as the  commission   department
 prescribes:
   (1) Monthly California weighted average prices and sales volumes
of finished leaded regular, unleaded regular, and premium motor
gasoline sold through company-operated retail outlets, to other
end-users, and to wholesale customers.
   (2) Monthly California weighted average prices and sales volumes
for residential sales, commercial and institutional sales, industrial
sales, sales through company-operated retail outlets, sales to other
end-users, and wholesale sales of No. 2 diesel fuel and No. 2 fuel
oil.
   (3) Monthly California weighted average prices and sales volumes
for retail sales and wholesale sales of No. 1 distillate, kerosene,
finished aviation gasoline, kerosene-type jet fuel, No. 4 fuel oil,
residual fuel oil with 1 percent or less sulfur, residual fuel oil
with greater than 1 percent sulfur and consumer grade propane.
   (i) (1) Beginning the first week after the effective date of the
act that added this subdivision, and each week thereafter, an oil
refiner, oil producer, petroleum product transporter, petroleum
product marketer, petroleum product pipeline operator, and terminal
operator, as designated by the  commission,  
department,  shall submit a report in the form and extent as the
 commission   department  prescribes
pursuant to this section. The  commission  
department  may determine the form and extent necessary by order
or by regulation.
   (2) A report may include any of the following information:
   (A) Receipts and inventory levels of crude oil and petroleum
products at each refinery and terminal location.
   (B) Amount of gasoline, diesel, jet fuel, blending components, and
other petroleum products imported and exported.
   (C) Amount of gasoline, diesel, jet fuel, blending components, and
other petroleum products transported intrastate by marine vessel.
   (D) Amount of crude oil imported, including information
identifying the source of the crude oil.
   (E) The regional average of invoiced retailer buying price. This
subparagraph does not either preclude or augment the current
authority of the  commission   department 
to collect additional data under subdivision (f).
   (3) This subdivision is intended to clarify the 
commission's   department's  existing authority
under subdivision (f) to collect specific information. This
subdivision does not either preclude or augment the existing
authority of the  commission   department 
to collect information.
  SEC. 103.  Section 25356 of the Public Resources Code is amended to
read:
   25356.  (a) The  commission,   department,
 utilizing its own staff and other support staff having
expertise and experience in, or with, the petroleum industry, shall
gather, analyze, and interpret the information submitted to it
pursuant to Section 25354 and other information relating to the
supply and price of petroleum products, with particular emphasis on
motor vehicle fuels, including, but not limited to, all of the
following:
   (1) The nature, cause, and extent of any petroleum or petroleum
products shortage or condition affecting supply.
   (2) The economic and environmental impacts of any petroleum and
petroleum product shortage or condition affecting supply.
   (3) Petroleum or petroleum product demand and supply forecasting
methodologies utilized by the petroleum industry in California.
   (4) The prices, with particular emphasis on retail motor fuel
prices, including sales to unbranded retail markets, and any
significant changes in prices charged by the petroleum industry for
petroleum or petroleum products sold in California and the reasons
for those changes.
   (5) The profits, both before and after taxes, of the industry as a
whole and of major firms within it, including a comparison with
other major industry groups and major firms within them as to
profits, return on equity and capital, and price-earnings ratio.
   (6) The emerging trends relating to supply, demand, and
conservation of petroleum and petroleum products.
   (7) The nature and extent of efforts of the petroleum industry to
expand refinery capacity and to make acquisitions of additional
supplies of petroleum and petroleum products, including activities
relative to the exploration, development, and extraction of resources
within the state.
   (8) The development of a petroleum and petroleum products
information system in a manner that will enable the state to take
action to meet and mitigate any petroleum or petroleum products
shortage or condition affecting supply.
   (b) The  commission   department  shall
analyze the impacts of state and federal policies and regulations
upon the supply and pricing of petroleum products.
  SEC. 104.  Section 25357 of the Public Resources Code is amended to
read:
   25357.  The  commission   department 
shall obtain and analyze monthly production reports prepared by the
State Oil and Gas Supervisor pursuant to Section 3227.
  SEC. 105.  Section 25358 of the Public Resources Code is amended to
read:
   25358.  (a) Within 70 days after the end of each preceding quarter
of each calendar year, the  commission  
department  shall publish and submit to the Governor and the
Legislature a summary, an analysis, and an interpretation of the
information submitted to it pursuant to Section 25354 and information
reviewed pursuant to Section 25357. This report shall be separate
from the report submitted pursuant to Section  25322
  25302  . Any person may submit comments in
writing regarding the accuracy or sufficiency of the information
submitted.
   (b) The  commission   department  shall
prepare a biennial assessment of the information provided pursuant to
this chapter and shall include its assessment in the biennial fuels
report prepared pursuant to Section 25310.
   (c) The  commission   department  may
use reasonable means necessary and available to it to seek and obtain
any facts, figures, and other information from any source for the
purpose of preparing and providing reports to the Governor and the
Legislature. The  commission   department 
shall specifically include in the reports its analysis of any
unsuccessful attempts in obtaining information from potential
sources, including the lack of cooperation or refusal to provide
information.
   (d) Whenever the  commission   department
 fails to provide any report required pursuant to this section
within the specified time, it shall provide to all members of the
Legislature, within five days of the specified time, a detailed
written explanation of the cause of any delay.
  SEC. 106.  Section 25362 of the Public Resources Code is amended to
read:
   25362.  (a) The  commission   department
 shall notify those persons who have failed to timely provide
the information specified in Section 25354. If, within five days
after being notified of the failure to provide the specified
information, the person fails to supply the specified information,
the person shall be subject to a civil penalty of not less than five
hundred dollars ($500) nor more than two thousand dollars ($2,000)
per day for each day the submission of information is refused or
delayed, unless the person has timely filed objections with the
 commission   department  regarding the
information and the  commission   department
 has not yet held a hearing on the matter, or the 
commission   department  has held a hearing and the
person has properly submitted the issue to a court of competent
jurisdiction for review.
   (b)  Any   A  person who willfully makes
any false statement, representation, or certification in any record,
report, plan, or other document filed with the  commission
  department  shall be subject to a civil penalty
not to exceed two thousand dollars ($2,000).
   (c) For the purposes of this section, the term "person" shall
mean, in addition to the definition contained in Section 25116, any
responsible corporate officer.
  SEC. 107.  Section 25364 of the Public Resources Code is amended to
read:
   25364.  (a)  Any   A  person required to
present information to the  commission  
department  pursuant to Section 25354 may request that specific
information be held in confidence. Information requested to be held
in confidence shall be presumed to be confidential.
   (b) Information presented to the  commission 
 department  pursuant to Section 25354 shall be held in
confidence by the  commission   department 
or aggregated to the extent necessary to assure confidentiality if
public disclosure of the specific information or data would result in
unfair competitive disadvantage to the person supplying the
information.
   (c) (1) Whenever the commission   department
 receives a request to publicly disclose unaggregated
information, or otherwise proposes to publicly disclose information
submitted pursuant to Section 25354, notice of the request or
proposal shall be provided to the person submitting the information.
The notice shall indicate the form in which the information is to be
released. Upon receipt of notice, the person submitting the
information shall have 10 working days in which to respond to the
notice to justify the claim of confidentiality on each specific item
of information covered by the notice on the basis that public
disclosure of the specific information would result in unfair
competitive disadvantage to the person supplying the information.
   (2) The  commission   department  shall
consider the respondent's submittal in determining whether to
publicly disclose the information submitted to it to which a claim of
confidentiality is made. The  commission  
department  shall issue a written decision  which
  that  sets forth its reasons for making the
determination whether each item of information for which a claim of
confidentiality is made shall remain confidential or shall be
publicly disclosed.
   (d) The  commission   department  shall
not make public disclosure of information submitted to it pursuant to
Section 25354 within 10 working days after the  commission
  department  has issued its written decision
required in this section.
   (e)  No information   Information 
submitted to the  commission   department 
pursuant to Section 25354 shall  not  be deemed confidential
if the person submitting the information or data has made it public.

   (f) With respect to petroleum products and blendstocks reported by
type pursuant to paragraph (1) or (2) of subdivision (a) of Section
25354 and information provided pursuant to subdivision (h) or (i) of
Section 25354, neither the  commission 
department  nor any employee of the  commission
  department  may do any of the following:
   (1) Use the information furnished under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 for any purpose other than the statistical purposes for
which it is supplied.
   (2) Make any publication whereby the information furnished by any
particular establishment or individual under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 can be identified.
   (3) Permit anyone other than  commission  
department  members and employees of the  commission
  department  to examine the individual reports
provided under paragraph (1) or (2) of subdivision (a) of Section
25354 or under subdivision (h) or (i) of Section 25354.
   (g) Notwithstanding any other provision of law, the 
commission   department  may disclose confidential
information received pursuant to subdivision (a) of Section 25304 or
Section 25354 to the State Air Resources Board if the state
                                  board agrees to keep the
information confidential. With respect to the information it
receives, the state board shall be subject to all pertinent
provisions of this section.
  SEC. 108.  Section 25366 of the Public Resources Code is amended to
read:
   25366.  Any confidential information pertinent to the
responsibilities of the  commission   department
 specified in this division  which   that
 is obtained by another state agency shall be available to the
 commission   department  and shall be
treated in a confidential manner.
  SEC. 109.  Section 25400 of the Public Resources Code is amended to
read:
   25400.  The  commission   department 
shall conduct an ongoing assessment of the opportunities and
constraints presented by all forms of energy. The  commission
  department  shall encourage the balanced use of
all sources of energy to meet the state's needs and shall seek to
avoid possible undesirable consequences of reliance on a single
source of energy.
  SEC. 110.  Section 25401 of the Public Resources Code is amended to
read:
   25401.   (a)    The  commission
  department  shall continuously carry out studies,
research projects, data collection, and other activities required to
assess the nature, extent, and distribution of energy resources to
meet the needs of the state, including but not limited to, fossil
fuels and solar, nuclear, and geothermal energy resources. It shall
also carry out studies, technical assessments, research projects, and
data collection directed to reducing wasteful, inefficient,
unnecessary, or uneconomic uses of energy, including, but not limited
to, all of the following: 
   (a) 
    (1)  Pricing of electricity and other forms of energy.

   (b) 
    (2)  Improved building design and insulation. 
   (c) 
    (3)  Restriction of promotional activities designed to
increase the use of electrical energy by consumers. 
   (d) 
    (4)  Improved appliance efficiency. 
   (e) 
    (5)  Advances in power generation and transmission
technology. 
   (f) 
    (6)  Comparisons in the efficiencies of alternative
methods of energy utilization. 
   The commission
    (b)     The department  shall survey
pursuant to this section all forms of energy on which to base its
recommendations to the Governor and Legislature for elimination of
waste or increases in efficiency for sources or uses of energy. The
 commission   department  shall transmit to
the Governor and the Legislature, as part of the biennial report
specified in Section  25309   25302  ,
recommendations for state policy and actions for the orderly
development of all potential sources of energy to meet the state's
needs, including, but not limited to, fossil fuels and solar,
nuclear, and geothermal energy resources, and to reduce wasteful and
inefficient uses of energy.
  SEC. 111.  Section 25401.2 of the Public Resources Code is amended
to read:
   25401.2.  (a) As part of the report required by Section 25302, the
 commission   department  shall develop
and update an inventory of current and potential cost-effective
opportunities in each utility's service territory  ,
 to improve efficiencies and to help utilities manage loads
in all sectors of natural gas and electricity use. The report shall
include estimates of the overall magnitude of these resources, load
shapes, and the projected costs associated with delivering the
various types of energy savings that are identified in the inventory.
The report shall also estimate the amount and incremental cost per
unit of potential energy efficiency and load management activities.
Where applicable, the inventory shall include data on variations in
savings and costs associated with particular measures. The report
shall take into consideration environmental benefits as developed in
related  commission   department  and
 public utilities commission   Public Utilities
Commission  proceedings.
   (b) The  commission   department  shall
develop and maintain the inventory in consultation with electric and
gas utilities, the Public Utilities Commission, academic
institutions, and other interested parties.
   (c) The  commission   department  shall
convene a technical advisory group to develop an analytic framework
for the inventory, to discuss the level of detail at which the
inventory would operate, and to ensure that the inventory is
consistent with other demand-side databases. Privately owned electric
and gas utilities shall provide financial support, gather data, and
provide analysis for activities that the technical advisory group
recommends. The technical advisory group shall terminate on January
1, 1993.
  SEC. 112.  Section 25401.5 of the Public Resources Code is amended
to read:
   25401.5.  For the purpose of reducing electrical and natural gas
energy consumption, the  commission   department
 may develop and disseminate measures that would enhance energy
efficiency for single-family residential dwellings that were built
prior to the development of the current energy efficiency standards.
The measures, if developed and disseminated, shall provide a
homeowner with information to improve the energy efficiency of a
single-family residential dwelling. The  commission 
 department  may comply with this section by posting the
measures on the  commission's   department's
 Internet Web site or by making the measures available to the
public, upon request.
  SEC. 113.  Section 25401.6 of the Public Resources Code is amended
to read:
   25401.6.  (a) In its administration of Section 25744, the 
commission  department  shall establish a separate
rebate for eligible distributed emerging technologies for affordable
housing projects including, but not limited to, projects undertaken
pursuant to Section 50052.5, 50053, or 50199.4 of the Health and
Safety Code. In establishing the rebate, where the 
commission   department  determines that the
occupants of the housing shall have individual meters, the 
commission   department  may adjust the amount of
the rebate based on the capacity of the system, provided that a
system may receive a rebate only up to 75 percent of the total
installed costs. The  commission   department
 may establish a reasonable limit on the total amount of funds
dedicated for purposes of this section.
   (b) It is the intent of the Legislature that this section fulfills
the purpose of paragraph (5) of subdivision (b) of Section 25744.
  SEC. 114.  Section 25401.7 of the Public Resources Code is amended
to read:
   25401.7.  At the time a single-family residential dwelling is
sold, a buyer or seller may request a home inspection, as defined in
subdivision (a) of Section 7195 of the Business and Professions Code,
and a home inspector, as defined in subdivision (d) of Section 7195
of the Business and Professions Code, shall provide, contact
information for one or more of the following entities that provide
home energy information:
   (a) A nonprofit organization.
   (b) A provider to the residential dwelling of electrical service,
or gas service, or both.
   (c) A government agency, including, but not limited to, the
 commission   department  .
  SEC. 115.  Section 25402 of the Public Resources Code is amended to
read:
   25402.  The commission  , with staff support from the
department,  shall, after one or more public hearings, do all of
the following, in order to reduce the wasteful, uneconomic,
inefficient, or unnecessary consumption of energy, including the
energy associated with the use of water:
   (a) (1) Prescribe, by regulation, lighting, insulation climate
control system, and other building design and construction standards
that increase the efficiency in the use of energy and water for new
residential and new nonresidential buildings. The commission shall
periodically update the standards and adopt any revision that, in its
judgment, it deems necessary. Six months after the commission
certifies an energy conservation manual pursuant to subdivision (c)
of Section 25402.1,  no   a  city, county,
city and county, or state agency shall  not  issue a permit
for  any  a  building unless the building
satisfies the standards prescribed by the commission pursuant to this
subdivision or subdivision (b) that are in effect on the date an
application for a building permit is filed. Water efficiency
standards adopted pursuant to this subdivision shall be demonstrated
by the commission to be necessary to save energy.
   (2) Prior to adopting a water efficiency standard for residential
buildings, the Department of Housing and Community Development and
the commission shall issue a joint finding whether the standard (A)
is equivalent or superior in performance, safety, and for the
protection of life, health, and general welfare to standards in Title
24 of the California Code of Regulations and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from water efficiency standards.
Nothing in this subdivision in any way reduces the authority of the
Department of Housing and Community Development to adopt standards
and regulations pursuant to Part 1.5 (commencing with Section 17910)
of Division 13 of the Health and Safety Code.
   (3) Water efficiency standards and water conservation design
standards adopted pursuant to this subdivision and subdivision (b)
shall be consistent with the legislative findings of this division to
ensure and maintain a reliable supply of electrical energy and be
equivalent to or superior to the performance, safety, and protection
of life, health, and general welfare standards contained in Title 24
of the California Code of Regulations. The commission shall consult
with the members of the coordinating council as established in
Section 18926 of the Health and Safety Code in the development of
these standards.
   (b) (1) Prescribe, by regulation, energy and water conservation
design standards for new residential and new nonresidential
buildings. The standards shall be performance standards and shall be
promulgated in terms of energy consumption per gross square foot of
floorspace, but may also include devices, systems, and techniques
required to conserve energy and water. The commission shall
periodically review the standards and adopt any revision that, in its
judgment, it deems necessary. A building that satisfies the
standards prescribed pursuant to this subdivision need not comply
with the standards prescribed pursuant to subdivision (a). Water
conservation design standards adopted pursuant to this subdivision
shall be demonstrated by the commission to be necessary to save
energy. Prior to adopting a water conservation design standard for
residential buildings, the Department of Housing and Community
Development and the commission shall issue a joint finding whether
the standard (A) is equivalent or superior in performance, safety,
and for the protection of life, health, and general welfare to
standards in the California Building Standards Code and (B) does not
unreasonably or unnecessarily impact the ability of Californians to
purchase or rent affordable housing, as determined by taking account
of the overall benefit derived from the water conservation design
standards. Nothing in this subdivision in any way reduces the
authority of the Department of Housing and Community Development to
adopt standards and regulations pursuant to Part 1.5 (commencing with
Section 17910) of Division 13 of the Health and Safety Code.
   (2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to  subdivisions
  this subdivision and subdivision  (a) 
and (b)  , the commission shall, prior to publication of the
notice of proposed action required by Section 18935 of the Health
and Safety Code, involve parties who would be subject to the proposed
regulations in public meetings regarding the proposed regulations.
All potential affected parties shall be provided advance notice of
these meetings and given an opportunity to provide written or oral
comments. During these public meetings, the commission shall receive
and take into consideration input from all parties concerning the
parties' design recommendations, cost considerations, and other
factors that would affect consumers and California businesses of the
proposed standard. The commission shall take into consideration prior
to the start of the notice of proposed action any input provided
during these public meetings.
   (3) The standards adopted or revised pursuant to 
subdivisions   this subdivision and subdivision 
(a)  and (b)  shall be cost-effective when taken in
their entirety and when amortized over the economic life of the
structure compared with historic practice. When determining
cost-effectiveness, the commission shall consider the value of the
water or energy saved, impact on product efficacy for the consumer,
and the life cycle cost of complying with the standard. The
commission shall consider other relevant factors, as required by
Sections 18930 and 18935 of the Health and Safety Code, including,
but not limited to, the impact on housing costs, the total statewide
costs and benefits of the standard over its lifetime, economic impact
on California businesses, and alternative approaches and their
associated costs.
   (c) (1) Prescribe, by regulation, standards for minimum levels of
operating efficiency, based on a reasonable use pattern, and may
prescribe other cost-effective measures, including incentive
programs, fleet averaging, energy and water consumption labeling not
preempted by federal labeling law, and consumer education programs,
to promote the use of energy and water efficient appliances whose
use, as determined by the commission, requires a significant amount
of energy or water on a statewide basis. The minimum levels of
operating efficiency shall be based on feasible and attainable
efficiencies or feasible improved efficiencies that will reduce the
energy or water consumption growth rates. The standards shall become
effective no sooner than one year after the date of adoption or
revision. No new appliance manufactured on or after the effective
date of the standards may be sold or offered for sale in the state,
unless it is certified by the manufacturer thereof to be in
compliance with the standards. The standards shall be drawn so that
they do not result in any added total costs for consumers over the
designed life of the appliances concerned.
   In order to increase public participation and improve the efficacy
of the standards adopted pursuant to this subdivision, the
commission shall, prior to publication of the notice of proposed
action required by Section 18935 of the Health and Safety Code,
involve parties who would be subject to the proposed regulations in
public meetings regarding the proposed regulations. All potential
affected parties shall be provided advance notice of these meetings
and given an opportunity to provide written or oral comments. During
these public meetings, the commission shall receive and take into
consideration input from all parties concerning the parties' design
recommendations, cost considerations, and other factors that would
affect consumers and California businesses of the proposed standard.
The commission shall take into consideration prior to the start of
the notice of proposed action any input provided during these public
meetings.
   The standards adopted or revised pursuant to this subdivision
shall not result in any added total costs for consumers over the
designed life of the appliances concerned. When determining
cost-effectiveness, the commission shall consider the value of the
water or energy saved, impact on product efficacy for the consumer,
and the life cycle cost to the consumer of complying with the
standard. The commission shall consider other relevant factors, as
required by Sections 11346.5 and 11357 of the Government Code,
including, but not limited to, the impact on housing costs, the total
statewide costs and benefits of the standard over its lifetime,
economic impact on California businesses, and alternative approaches
and their associated costs.
   (2)  No   A  new appliance, except for
any plumbing fitting, regulated under paragraph (1), that is
manufactured on or after July 1, 1984,  may  
shall not be sold, or offered for sale, in the state, unless the
date of the manufacture is permanently displayed in an accessible
place on that appliance.
   (3) During the period of five years after the commission has
adopted a standard for a particular appliance under paragraph (1), no
increase or decrease in the minimum level of operating efficiency
required by the standard for that appliance shall become effective,
unless the commission adopts other cost-effective measures for that
appliance.
   (4) Neither the commission nor any other state agency shall take
any action to decrease any standard adopted under this subdivision on
or before June 30, 1985, prescribing minimum levels of operating
efficiency or other energy conservation measures for any appliance,
unless the commission finds by a four-fifths vote that a decrease is
of benefit to ratepayers, and that there is significant evidence of
changed circumstances. Before January 1, 1986, the commission shall
not take any action to increase a standard prescribing minimum levels
of operating efficiency for any appliance or adopt a new standard
under paragraph (1). Before January 1, 1986, any appliance
manufacturer doing business in this state shall provide directly, or
through an appropriate trade or industry association, information, as
specified by the commission after consultation with manufacturers
doing business in the state and appropriate trade or industry
associations on sales of appliances so that the commission may study
the effects of regulations on those sales. These informational
requirements shall remain in effect until the information is
received. The trade or industry association may submit sales
information in an aggregated form in a manner that allows the
commission to carry out the purposes of the study. The commission
shall treat any sales information of an individual manufacturer as
confidential and that information shall not be a public record. The
commission shall not request any information that cannot be
reasonably produced in the exercise of due diligence by the
manufacturer. At least one year prior to the adoption or amendment of
a standard for an appliance, the commission shall notify the
Legislature of its intent, and the justification to adopt or amend a
standard for the appliance. Notwithstanding paragraph (3) and this
paragraph, the commission may do any of the following:
   (A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary Consensus
Standards 90, adopted by the American Society of Heating,
Refrigeration, and Air Conditioning Engineers or, for appliances not
covered by that standard, up to the level established in a similar
nationwide consensus standard.
   (B) Change the measure or rating of efficiency of any standard, if
the minimum level of operating efficiency remains substantially the
same.
   (C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.
   (D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.
   (E) Adopt or amend any existing or new standard at any level of
operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.
   (5) Notwithstanding paragraph (4), the commission may adopt
standards pursuant to Commission Order No. 84-0111-1, on or before
June 30, 1985.
   (d) Recommend minimum standards of efficiency for the operation of
any new facility at a particular site that are technically and
economically feasible. No site and related facility shall be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
commission have been considered, which certification shall include a
statement specifying the extent to which conformance with the
recommended standards will be achieved.
   Whenever this section and Chapter 11.5 (commencing with Section
19878) of Part 3 of Division 13 of the Health and Safety Code are in
conflict, the commission shall be governed by that chapter of the
Health and Safety Code to the extent of the conflict.
   (e) The commission shall do all of the following:
   (1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.
   (2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.
   (3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).
  SEC. 116.  Section 25402.1 of the Public Resources Code is amended
to read:
   25402.1.  In order to implement the requirements of subdivisions
(a) and (b) of Section 25402, the commission  and the department
 shall do all of the following:
   (a) Develop a public domain computer program  which
  that  will enable contractors, builders,
architects, engineers, and government officials to estimate the
energy consumed by residential and nonresidential buildings. The
 commission   department  may charge a fee
for the use of the program, which fee shall be based upon the actual
cost of the program, including any computer costs.
   (b) Establish a formal process for certification of compliance
options for new products, materials, and calculation methods 
which   that  provides for adequate technical and
public review to ensure accurate, equitable, and timely evaluation of
certification applications. Proponents filing applications for new
products, materials, and calculation methods shall provide all
information needed to evaluate the application that is required by
the commission. The  commission   department
 shall publish annually the results of its certification
decisions and instructions to users and local building officials
concerning requirements for showing compliance with the building
standards for new products, materials, or calculation methods. The
 commission   department  may charge and
collect a reasonable fee from applicants to cover the costs under
this subdivision. Any funds received by the  commission
  department  for purposes of this subdivision
shall be deposited in the Energy Resources Programs Account and,
notwithstanding Section 13340 of the Government Code, are
continuously appropriated to the  commission  
department  for the purposes of this subdivision. Any
unencumbered portion of funds collected as a fee for an application
remaining in the Energy Resources Programs Account after completion
of the certification process for that application shall be returned
to the applicant within a reasonable period of time.
   (c) Include a prescriptive method of complying with the standards,
including design aids such as a manual, sample calculations, and
model structural designs.
   (d) Conduct a pilot project of field testing of actual residential
buildings to calibrate and identify potential needed changes in the
modeling assumptions to increase the accuracy of the public domain
computer program specified in subdivision (a) and to evaluate the
impacts of the standards, including, but not limited to, the energy
savings, cost effectiveness, and the effects on indoor air quality.
The pilot project shall be conducted pursuant to a contract entered
into by the  commission.   department.  The
 commission   department  shall consult
with the participants designated pursuant to Section 9202 of the
Public Utilities Code to seek funding and support for field
monitoring in each public utility service territory, with the
University of California to take advantage of its extensive building
monitoring expertise, and with the California Building Industry
Association to coordinate the involvement of builders and developers
throughout the state. The pilot project shall include periodic public
workshops to develop plans and review progress. The 
commission   department  shall prepare and submit a
report to the Legislature on progress and initial findings not later
than December 31, 1988, and a final report on the results of the
pilot project on residential buildings not later than June 30, 1990.
The report shall include recommendations regarding the need and
feasibility of conducting further monitoring of actual residential
and nonresidential buildings. The report shall also identify any
revisions to the public domain computer program and energy
conservation standards if the pilot project determines that revisions
are appropriate.
   (e) Certify, not later than 180 days after approval of the
standards by the  State   California 
Building Standards Commission, an energy conservation manual for use
by designers, builders, and contractors of residential and
nonresidential buildings. The manual shall be furnished upon request
at a price sufficient to cover the costs of production and shall be
distributed at no cost to all affected local agencies. The manual
shall contain, but not be limited to, the following:
   (1) The standards for energy conservation established by the
 commission   department  .
   (2) Forms, charts, tables, and other data to assist designers and
builders in meeting the standards.
   (3) Design suggestions for meeting or exceeding the standards.
   (4) Any other information  which   that 
the  commission   department  finds will
assist persons in conforming to the standards.
   (5) Instructions for use of the computer program for calculating
energy consumption in residential and nonresidential buildings.
   (6) The prescriptive method for use as an alternative to the
computer program.
   (f) The  commission   department  shall
establish a continuing program of technical assistance to local
building departments in the enforcement of
                        subdivisions (a) and (b) of Section 25402 and
this section. The program shall include the training of local
officials in building technology and enforcement procedures related
to energy conservation, and the development of complementary training
programs conducted by local governments, educational institutions,
and other public or private entities. The technical assistance
program shall include the preparation and publication of forms and
procedures for local building departments in performing the review of
building plans and specifications. The  commission 
 department  shall provide, on a contract basis, a review
of building plans and specifications submitted by a local building
department, and shall adopt a schedule of fees sufficient to repay
the cost of those services.
   (g) Subdivisions (a) and (b) of Section 25402 and this section,
and the rules and regulations of the commission adopted pursuant
thereto, shall be enforced by the building department of every city,
county, or city and county.
   (1) No building permit for any residential or nonresidential
building shall be issued by a local building department, unless a
review by the building department of the plans for the proposed
residential or nonresidential building contains detailed energy
system specifications and confirms that the building satisfies the
minimum standards established pursuant to subdivision (a) or (b) of
Section 25402 and this section applicable to the building.
   (2) Where there is no local building department, the 
commission   department  shall enforce subdivisions
(a) and (b) of Section 25402 and this section.
   (3) If a local building department fails to enforce subdivisions
(a) and (b) of Section 25402 and this section or any other provision
of this chapter or standard adopted pursuant thereto, the 
commission  department  may provide enforcement
after furnishing 10 days' written notice to the local building
department.
   (4) A city, county, or city and county may, by ordinance or
resolution, prescribe a schedule of fees sufficient to pay the costs
incurred in the enforcement of subdivisions (a) and (b) of Section
25402 and this section. The  commission  
department  may establish a schedule of fees sufficient to pay
the costs incurred by that enforcement.
   (5)  No construction   Construction  of
 any   a  state building shall  not
 commence until the Department of General Services or the state
agency that otherwise has jurisdiction over the property reviews the
plans for the proposed building and certifies that the plans satisfy
the minimum standards established pursuant to  subdivision
(a) or (b) of  Chapter 2.8 (commencing with Section
15814.30) of Part 10b of Division 3 of Title 2 of the Government
Code, Section 25402, and this section which are applicable to the
building.
   (h) Subdivisions (a) and (b) of Section 25402 and this section
shall apply only to new residential and nonresidential buildings on
which actual site preparation and construction have not commenced
prior to the effective date of rules and regulations adopted pursuant
to those sections that are applicable to those buildings. Nothing in
those sections shall prohibit either of the following:
   (1) The enforcement of state or local energy conservation or
energy insulation standards, adopted prior to the effective date of
rules and regulations adopted pursuant to subdivisions (a) and (b) of
Section 25402 and this section with regard to residential and
nonresidential buildings on which actual site preparation and
construction have commenced prior to that date.
   (2) The enforcement of city or county energy conservation or
energy insulation standards, whenever adopted, with regard to
residential and nonresidential buildings on which actual site
preparation and construction have not commenced prior to the
effective date of rules and regulations adopted pursuant to
subdivisions (a) and (b) of Section 25402 and this section, if the
city or county files the basis of its determination that the
standards are cost effective with the  commission 
 department  and the commission finds that the standards
will require the diminution of energy consumption levels permitted by
the rules and regulations adopted pursuant to those sections. If,
after two or more years after the filing with the  commission
  department  of the determination that those
standards are cost effective, there has been a substantial change in
the factual circumstances affecting the determination, upon
application by any interested party, the city or county shall update
and file a new basis of its determination that the standards are cost
effective. The determination that the standards are cost effective
shall be adopted by the governing body of the city or county at a
public meeting. If, at the meeting on the matter, the governing body
determines that the standards are no longer cost effective, the
standards shall, as of that date, be unenforceable and no building
permit or other entitlement shall be denied based on the
noncompliance with the standards.
   (i) The  commission   department  may
exempt from the requirements of this section and of any regulations
adopted pursuant thereto any proposed building for which compliance
would be impossible without substantial delays and increases in cost
of construction, if the  commission   department
 finds that substantial funds have been expended in good faith
on planning, designing, architecture or engineering prior to the date
of adoption of the regulations.
   (j) If a dispute arises between an applicant for a building
permit, or the state pursuant to paragraph (5) of subdivision (g),
and the building department regarding interpretation of Section 25402
or the regulations adopted pursuant thereto, either party may submit
the dispute to the commission for resolution. The commission's
determination of the matter shall be binding on the parties.
   (k) Nothing in Section 25130, 25131, or 25402, or in this section
prevents enforcement of any regulation adopted pursuant to this
chapter, or Chapter 11.5 (commencing with Section 19878) of Part 3 of
Division 13 of the Health and Safety Code as they existed prior to
September 16, 1977.
  SEC. 117.  Section 25402.3 of the Public Resources Code is amended
to read:
   25402.3.  For purposes of subdivision (e) of Section 25402.1, the
 commission   department  shall contract
with California building officials to establish two regional training
centers to provide continuing education for local building officials
and enforcement personnel as follows:
   (a) One site shall be located in northern California and one site
shall be located in southern California to serve the needs of the
respective regions.
   (b) The centers shall provide training on a monthly basis to
ensure a uniform understanding and implementation of the energy
efficient building standards. Existing resources shall be used as
much as possible by utilizing members of the building official
community in training activities.
   (c) The centers shall provide similar training sessions, in the
form of workshops given in designated rural areas, to ensure that
adequate training is available throughout the state.  The
workshops shall meet the following requirements: 
   (1) A minimum of two workshops in northern California and two
workshops in southern California shall be offered each year.
   (2) The sites shall be selected to ensure the greatest number of
participants will be served in areas of greatest need to decrease the
financial burden on small rural or isolated local government
agencies that would not be able to travel to the regional training
centers for instruction.
  SEC. 118.  Section 25402.6 of the Public Resources Code is amended
to read:
   25402.6.  The  commission   department 
shall investigate options and develop a plan to decrease wasteful
peakload energy consumption in existing residential and
nonresidential buildings. On or before January 1, 2004, the 
commission   department  shall report its findings
to the Legislature, including, but not limited to, any changes in law
necessary to implement the plan to decrease wasteful peakload energy
consumption in existing residential and nonresidential buildings.
  SEC. 119.  Section 25402.9 of the Public Resources Code is amended
to read:
   25402.9.  (a) On or before July 1, 1996, the  commission
  department  shall develop, adopt, and publish an
informational booklet to educate and inform homeowners, rental
property owners, renters, sellers, brokers, and the general public
about the statewide home energy rating program adopted pursuant to
Section 25942.
   (b) In the development of the booklet, the  commission
  department  shall consult with representatives of
the Department of Real Estate, the Department of Housing and
Community Development, the Public Utilities Commission,
investor-owned and municipal utilities, cities and counties, real
estate licensees, home builders, mortgage lenders, home appraisers
and inspectors, home energy rating organizations, contractors who
provide home energy services, consumer groups, and environmental
groups.
   (c) The  commission   department  shall
charge a fee for the informational booklet to recover its costs under
subdivision (a).
  SEC. 120.  Section 25403 of the Public Resources Code is amended to
read:
   25403.  The  commission   department 
shall submit to the Public Utilities Commission and to any publicly
owned electric utility, recommendations designed to reduce wasteful,
unnecessary, or uneconomic energy consumption resulting from
practices including, but not limited to, differential rate
structures, cost-of-service allocations, the disallowance of a
business expense of advertising or promotional activities 
which   that  encourage the use of electrical
power, peakload pricing, and other pricing measures. The Public
Utilities Commission or publicly owned electric utility shall review
and consider  such   the  recommendations
and shall, within six months after the date it receives them, as
prescribed by this section, report to the Governor and the
Legislature its actions and reasons therefor with respect to 
such   the  recommendations.
  SEC. 121.  Section 25403.5 of the Public Resources Code is amended
to read:
   25403.5.  (a) The  commission   department
 shall, by July 1, 1978, adopt standards by regulation for a
program of electrical load management for each utility service area.
In adopting the standards, the  commission  
department  shall consider, but need not be limited to, the
following load management techniques:
   (1) Adjustments in rate structure to encourage use of electrical
energy at off-peak hours or to encourage control of daily electrical
load. Compliance with those adjustments in rate structure shall be
subject to the approval of the Public Utilities Commission in a
proceeding to change rates or service.
   (2) End use storage systems which store energy during off-peak
periods for use during peak periods.
   (3) Mechanical and automatic devices and systems for the control
of daily and seasonal peakloads.
   (b)  (1)    The standards shall be
cost-effective when compared with the costs for new electrical
capacity, and the  commission   department 
shall find them to be technologically feasible. Any expense or any
capital investment required of a utility by the standards shall be an
allowable expense or an allowable item in the utility rate base and
shall be treated by the Public Utilities Commission as allowable in a
rate proceeding. 
   The commission 
    (2)     The department  may determine
that one or more of the load management techniques are infeasible and
may delay their adoption. If the  commission  
department  determines that any techniques are infeasible to
implement, it shall make a finding in each instance stating the
grounds upon which the determination was made and the actions it
intends to take to remove the impediments to implementation.
   (c) The  commission   department  may
also grant, upon application by a utility, an exemption from the
standards or a delay in implementation. The grant of an exemption or
delay shall be accompanied by a statement of findings by the 
commission   department  indicating the grounds
for the exemption or delay. Exemption or delay shall be granted only
upon a showing of extreme hardship, technological infeasibility, lack
of cost-effectiveness, or reduced system reliability and efficiency.

   (d) This section does not apply to proposed sites and related
facilities for which a notice of intent or an application requesting
certification has been filed with the commission prior to the
effective date of the standards. 
  SEC. 122.  Section 25403.8 of the Public Resources Code is amended
to read:
   25403.8.  (a) The  commission   department
 shall develop and implement a program to provide battery backup
power for those official traffic control signals, operated by a
city, county, or city and county, that the  commission,
  department,  in consultation with cities,
counties, or cities and counties, determines to be high priority
traffic control signals.
   (b) Based on traffic factors considered by cities, counties, or
cities and counties, including, but not limited to, traffic volume,
number of accidents, and presence of children, the 
commission   department  shall determine a priority
schedule for the installation of battery backup power for traffic
control systems. The  commission   department
 shall give priority to a city, county, or city and county that
did not receive a grant from the State of California for the
installation of light-emitting diode traffic control signals.
   (c) The  commission   department  shall
also develop or adopt the necessary technical criteria as to wiring,
circuitry, and recharging units for traffic control signals. Only
light-emitting diodes (LED) traffic control signals are eligible for
battery backup power for the full operation of the traffic control
signal or a flashing red mode. A city, county, or city and county may
apply for a matching grant for battery backup power for traffic
control signals retrofitted with light-emitting diodes.
   (d) Based on the criteria described in subdivision (c), the
 commission   department  shall provide
matching grants to cities, counties, and cities and counties for
backup battery systems described in this section in accordance with
the priority schedule established by the  commission
  department  pursuant to subdivision (b). The
 commission   department  shall provide 70
percent of the funds for a battery backup system, and the city,
county, or city and county shall provide 30 percent.
   (e) If a city, county, or city and county has installed a backup
battery system for LED traffic control signals between January 1,
2001, and  the effective date of the act adding this section
  October 1, 2001  , the  commission
  department  may reimburse the city, county, or
city and county for up to 30 percent of the cost incurred for the
backup battery system installation. However, the  commission
  department  may not spend more than one million
five hundred thousand dollars ($1,500,000) for reimbursements
pursuant to this subdivision.
  SEC. 123.  Section 25404 of the Public Resources Code is amended to
read:
   25404.  The commission   department 
shall cooperate with the Office of Planning and Research, the
Resources Agency  ,  and other interested parties in
developing procedures to ensure that mitigation measures to minimize
wasteful, inefficient, and unnecessary consumption of energy are
included in all environmental impact reports required on local
projects as specified in Section 21151.
  SEC. 124.  Section 25410.5 of the Public Resources Code is amended
to read:
   25410.5.  The Legislature finds and declares all of the following:

   (a) Energy costs are frequently the second largest discretionary
expense in a local government's budget. According to the 
commission,   department,  most public institutions
could reduce their energy costs by 20 to 30 percent.
   (b) A variety of energy conservation measures are available to
local governments. These measures are highly cost-effective, often
providing a payback on the initial investment in three years or less.

   (c) Many local governments lack energy management expertise and
are often unaware of their high energy costs or the opportunities to
reduce those costs.
   (d) Local governments that desire to reduce their energy costs
through energy conservation and efficiency measures often lack
available funding.
   (e) Since 1980, the Energy Conservation Assistance Account has
provided $110 million in loans, through a revolving loan account, to
600 schools, hospitals, and local governments. The energy
conservation projects funded by the account save approximately $35
million annually in energy costs.
   (f) Local governments and public institutions need assistance in
all aspects of energy efficiency improvements, including, but not
limited to, project identification, project development and
implementation, evaluation of project proposals and options,
operations and maintenance, and troubleshooting of problem projects.
  SEC. 125.  Section 25410.6 of the Public Resources Code is amended
to read:
   25410.6.  (a) It is the intent of the Legislature that the
 commission   department  shall administer
the State Energy Conservation Assistance Account to provide grants
and loans to local governments and public institutions to maximize
energy use savings, including, but not limited to, technical
assistance, demonstrations, and identification and implementation of
cost-effective energy efficiency measures and programs in existing
and planned buildings or facilities.
   (b) It is further the intent of the Legislature that the 
commission   department  seek the assistance of
utility companies in providing energy audits for local governments
and public institutions and in publicizing the availability of State
Energy Conservation Assistance Account funds to qualified entities.
  SEC. 126.  Section 25411 of the Public Resources Code is amended to
read:
   25411.  As used in this chapter:
   (a) "Allocation" means a loan of funds by the commission pursuant
to the procedures specified in this chapter.
   (b) "Building" means any existing or planned structure that
includes a heating or cooling system, or both. Additions to an
original building shall be considered part of that building rather
than a separate building.
   (c) "Eligible institution" means a school, hospital, public care
institution,  or  a unit of local government  ,
  or a joint powers authority  .
   (d) "Energy audit" means a determination of the energy consumption
characteristics of a building or facility that does all of the
following:
   (1) Identifies the type, size, and energy use level of the
building or facility and the major energy using systems of the
building or facility.
   (2) Determines appropriate energy conservation maintenance and
operating procedures.
   (3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures.
   (e) "Energy conservation maintenance and operating procedure"
means a modification or modifications in the maintenance and
operations of a building or facility, and any installations therein
(based on the use time schedule of the building or facility), which
are designed to reduce energy consumption  or peak load  in
the building or facility and that require no significant expenditure
of funds.
   (f) "Energy conservation measure" means an installation or
modification of an installation in a building or facility that is
primarily intended to reduce energy consumption  , reduce peak
load,  or allow the use of a more desirable energy source.
   (g) "Energy conservation project" means an undertaking to acquire
and to install one or more energy conservation measures in a building
or facility, and technical assistance in connection with that
undertaking.
   (h) "Facility" means  any major   an existing
or planned energy using system of an eligible institution
whether or not housed in a building.
   (i) "Hospital" means a public or nonprofit institution that is
both of the following:
   (1) A general hospital, tuberculosis hospital, or any other type
of hospital, other than a hospital furnishing primarily domiciliary
care.
   (2) Duly authorized to provide hospital services under the laws of
this state.
   (j) "Hospital building" means a building housing a hospital and
related operations, including laboratories, laundries, outpatient
departments, nurses' home and training activities, and central
service operations in connection with a hospital, and also includes a
building housing education or training activities for health
professions personnel operated as an integral part of a hospital.

   (k) "Joint powers authority" means an entity consisting of any
combination of a school, hospital, public care institution, or unit
of a local government formed for the joint exercise of any power.
 
   (k) 
    (   )    "Local government building"
means a building that is primarily occupied by offices or agencies of
a unit of local government or by a public care institution. 

   () 
    (m)    "Project" means a purpose for which an
allocation may be requested and made under this chapter. Those
purposes shall include energy audits, energy conservation and
operating procedures, and energy conservation measures in existing
and planned buildings and facilities, energy conservation projects,
and technical assistance programs. 
   (m) 
    (n)    "Public care institution" means a public
or nonprofit institution that owns:
   (1) A long-term care institution.
   (2) A rehabilitation institution.
   (3) An institution for the provision of public health services,
including related publicly owned services such as laboratories,
clinics, and administrative offices operated in connection with the
institution.
   (4) A residential child care center. 
   (n) 
    (o)    "Public or nonprofit institution" means
an institution owned and operated by:
   (1) The state, a political subdivision of the state, or an agency
or instrumentality of either.
   (2) An organization exempt from income tax under Section 501(c)(3)
of the Internal Revenue Code of 1954.
   (3) In the case of public care institutions, an organization also
exempt from income tax under Section 501(c)(4) of the Internal
Revenue Code of 1954. 
   (o) 
    (p)    "School" means a public or nonprofit
institution, including a local educational agency, which:
   (1) Provides, and is legally authorized to provide, elementary
education or secondary education, or both, on a day or residential
basis.
   (2) Provides, and is legally authorized to provide, a program of
education beyond secondary education, on a day or residential basis
and meets all of the following requirements:
   (A) Admits as students only persons having a certificate of
graduation from a school providing secondary education, or the
recognized equivalent of that certificate.
   (B) Is accredited by a nationally recognized accrediting agency or
association.
   (C) Provides an education program for which it awards a bachelor's
degree or higher degree or provides not less than a two-year program
that is acceptable for full credit toward a degree at any
institution that meets the requirements of subparagraphs (A) and (B)
and provides that program.
   (3) Provides not less than a one-year program of training to
prepare students for gainful employment in a recognized occupation
and that meets the provisions of (2). 
   (p) 
    (q)    "School building" means a building
housing classrooms, laboratories, dormitories, athletic facilities,
or related facilities operated in connection with a school. 
   (q) 
    (r)    "Technical assistance costs" means costs
incurred for the use of existing personnel or the temporary
employment of other qualified personnel, or both, necessary for
providing technical assistance. 
   (r) 
    (s)    "Technical assistance program" means
assistance to  schools, hospitals, local government, and
public care   eligible  institutions and includes,
but is not limited to:
   (1) Conducting specialized studies identifying and specifying
energy  or peak load  savings and related cost savings that
are likely to be realized as a result of:
   (A) Modification of maintenance and operating procedures in a
building or facility, in addition to those modifications implemented
after the preliminary energy audit, or
   (B) Acquisition and installation of one or more specified energy
conservation measures in the building or facility, or as a result of
both.
   (C) New construction activities.
   (2) Planning of specific remodeling, renovation, repair,
replacement, or insulation projects related to the installation of
energy conservation measures in the building or facility.
   (3) Developing and evaluating alternative project implementation
methods and proposals. 
   (s) 
    (t)    "Unit of local government" means a unit
of general  or special  purpose government below the state
 or a special district  .
  SEC. 127.  Section 25412 of the Public Resources Code is amended to
read:
   25412.   (a)    Any eligible institution may
submit an application to the  commission  
department  for an allocation for the purpose of financing all
or a portion of the costs incurred in implementing a project. The
application shall be in  such   the  form
and contain  such   the  information
 as   incurred in implementing a project that
 the  commission   department  shall
prescribe.
    (b)    An application may be for the purpose of
financing the eligible institution's share of  such
 costs  which   that  are to be
jointly funded through a state, local, or federal-local program.
  SEC. 128.  Section 25413 of the Public Resources Code is amended to
read:
   25413.  Applications may be approved by the  commission
  department  only in those instances where the
eligible institution has furnished information satisfactory to the
 commission   department  that the costs of
the project, plus interest on state funds loaned, calculated in
accordance with Section 25415, will be recovered through savings in
the cost of energy to the institution during the repayment period of
the allocation.
   The savings shall be calculated in a manner prescribed by the
 commission   department  .
  SEC. 129.  Section 25414 of the Public Resources Code is amended to
read:
                                                              25414.
Annually  at the conclusion of each fiscal year, but not
later than October 31,   for three years after
completion of the energy conservation project,  each eligible
institution  which   that  has received an
allocation pursuant to  the provisions of  this
chapter shall compute the cost of the energy saved as a result of
implementing a project funded by  such   that
 allocation.  Such   That  cost shall
be calculated in a manner prescribed by the  commission
  department  .
  SEC. 130.  Section 25415 of the Public Resources Code is amended to
read:
   25415.  (a)  Each   An  eligible
institution to which an allocation has been made under this chapter
shall repay the principal amount of the allocation, plus interest, in
not more than 30 equal semiannual payments, as determined by the
 commission. The first semiannual payment shall be made on or
before December 22 of the fiscal year following the year in which
the project is completed.   department. Loan repayments
shall be made in accordance with a   schedule established by
the department.  The repayment period may not exceed the life
of the equipment, as determined by the  commission 
 department  or the lease term of the building  or
facility  in which the energy conservation measures will be
installed.
   (b) Notwithstanding any other provision of law, the 
commission   department  shall, unless it
determines that the purposes of this chapter would be better served
by establishing an alternative interest rate schedule, periodically
set interest rates on the loans based on surveys of existing
financial markets and at rates not less than 3 percent per annum.
   (c) The governing body of each eligible institution shall annually
budget an amount at least sufficient to make the semiannual payments
required in this section. The amount shall not be raised by the levy
of additional taxes but shall instead be obtained by a savings in
energy costs or other sources.
  SEC. 131.  Section 25416 of the Public Resources Code is amended to
read:
   25416.  (a) The State Energy Conservation Assistance Account is
hereby created in the General Fund. Notwithstanding Section 13340 of
the Government Code, the account is continuously appropriated to the
 commission   department  without regard to
fiscal year.
   (b) The money in the account shall consist of all money authorized
or required to be deposited in the account by the Legislature and
all money received by the  commission  
department  pursuant to Sections 25414 and 25415.
   (c) The money in the account shall be disbursed by the Controller
for the purposes of this chapter as authorized by the 
commission   department  .
   (d) The  commission   department  may
contract and provide grants for services to be performed for eligible
institutions. Services may include, but are not limited to,
feasibility analysis, project design, field assistance, and operation
and training. The amount expended for those services may not exceed
10 percent of the balance of the account as determined by the
 commission   department  on July 1 of each
year.
   (e) The  commission   department  may
make grants for innovative projects and programs. The amount expended
for grants may not exceed 5 percent of the annual appropriation from
the account.
   (f) The  commission   department  may
charge a fee for the services provided under subdivision (d).
   (g) Notwithstanding any other provision of law, the Controller may
use the State Energy Conservation Assistance Account for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code.
  SEC. 132.  Section 25417 of the Public Resources Code is amended to
read:
   25417.  (a) An allocation made pursuant to this chapter shall be
used for the purposes specified in an approved application.
   (b) In the event that the  commission  
department  determines that an allocation has been expended for
purposes other than those specified in an approved application, it
shall immediately request the return of the full amount of the
allocation. The eligible institution shall immediately comply with
 such   this  request.
  SEC. 133.  Section 25417.5 of the Public Resources Code is amended
to read:
   25417.5.  (a) In furtherance of the purposes of the 
commission   department  as set forth in this
chapter, the  commission   department  has
the power and authority to do all of the following:
   (1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority  ,   and  the
California Infrastructure and Economic Development Bank  ,
and the California Consumer Power and Conservation Financing
Authority  from the proceeds of revenue bonds issued by any
of those agencies.
   (2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440).
   (3) Sell loans made pursuant to this chapter or Chapter 5.4
(commencing with Section 25440), at prices determined in the sole
discretion of the  commission,   department,
 to the California Economic Development Financing Authority
 ,   and  the California Infrastructure and
Economic Development Bank  , and the California Consumer
Power and Conservation Financing Authority  to raise funds
to enable the  commission   department  to
make loans to eligible institutions.
   (4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the 
California Consumer Power and Conservation Financing Authority
  department  as conditions of issuing bonds to
fund loans to, or the purchase of loans from, the  commission
  department  .
   (b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the  commission   department
 may enter into pledge agreements setting forth the terms and
conditions pursuant to which the  commission  
department  is pledging loans or the principal and interest
payment on loans, and may also agree to have the loans held by bond
trustees or by independent collateral or escrow agents and to direct
that payments received on those loans be paid to those trustee,
collateral, or escrow agents.
   (c) The  commission   department  may
employ financial consultants, legal advisers, accountants, and other
service providers, as may be necessary in its judgment, in connection
with activities pursuant to this chapter.
   (d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.4 (commencing with Section 25440), and
is supplemental and additional to powers conferred by other laws.
  SEC. 134.  Section 25419 of the Public Resources Code is amended to
read:
   25419.  In addition to the powers specifically granted to the
 commission   department  by the other
provisions of this chapter, the  commission  
department  shall have the following powers:
   (a) To establish qualifications and priorities, consistent with
the objectives of this chapter, for making allocations.
   (b) To establish  such  procedures and policies
as may be necessary for the administration of this chapter.
  SEC. 135.  Section 25420 of the Public Resources Code is amended to
read:
   25420.  The  commission   department 
may expend from the State Energy Conservation Assistance Account an
amount to pay for the actual administrative costs incurred by the
 commission   department  pursuant to this
chapter.  Such   This  amount shall not
exceed 5 percent of the total appropriation, to be held in reserve
and used to defray costs incurred by the  commission
  department  for allocations made by the 
commission   department  pursuant to this chapter.
  SEC. 136.  Section 25421 of the Public Resources Code is amended to
read:
   25421.  (a) Except as provided in subdivision (b), this chapter
shall remain in effect only until January 1,  2011, 
 2026,  and as of that date is repealed, unless a later
enacted statute, which is enacted before January 1,  2011,
  2026,  deletes or extends that date.
   (b) All loans outstanding as of January 1,  2011,
  2026,  shall continue to be repaid on a
semiannual basis, as specified in Section 25415, until paid in full.
All unexpended funds in the State Energy Conservation Assistance
Account on January 1,  2011,   2026,  and
thereafter, except to the extent those funds are encumbered pursuant
to Section 25417.5, shall revert to the General Fund.
  SEC. 137.  Section 25426 of the Public Resources Code is amended to
read:
   25426.  As used in this article, the following terms have the
following meanings:
   (a) "Commercial refrigeration" means a refrigerator that is not a
federally regulated consumer product.
   (b) "Energy-efficient model" means  any   an
 appliance that meets the efficiency standards of the United
States Department of Energy that are effective on and after July 1,
2001, and, if applicable, products certified as energy efficient zone
heating products by the  State Energy Resources Conservation
and Development Commission.   commission. 
   (c) "Small business" means  any   a 
small business as defined in paragraph (1) of subdivision (d) of
Section 14837 of the Government Code.
  SEC. 138.  Section 25433.5 of the Public Resources Code is amended
to read:
   25433.5.  (a)  In   The department, in 
consultation with the Public Utilities Commission,  the
commission  shall do both of the following for the purpose
of full or partial funding of an eligible construction or retrofit
project:
   (1) Establish a grant program to provide financial assistance to
eligible low-income individuals.
   (2) Establish a 2-percent interest per annum loan program to
provide financial assistance to a small business owner, residential
property owner, or individual who is not eligible for a grant
pursuant to paragraph (1). The loans shall be available to a small
business owner who has a gross annual income that does not exceed one
hundred thousand dollars ($100,000) or to an individual or
residential property owner who has a gross annual household income
that does not exceed one hundred thousand dollars ($100,000).
   (b) (1) The  commission   department 
shall use the design guidelines adopted pursuant to paragraph (2) of
subdivision (f) of Section 14 of  the act that added this
section   Chapter 8 of the Statutes of the First
Extraordinary Session of 2001  as standards to determine
eligible energy-efficiency projects.
   (2) The award of a grant pursuant to this section is subject to
appeal to the  commission   department 
upon a showing that the  commission   department
 applied factors, other than those adopted by the 
commission,   department,  in making the award.
   (3) The grant or loan recipient shall commit to using the grant or
loan for the purpose for which the grant or loan was awarded.
   (4) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including satisfying
conditions specified by the  commission,  
department,  does not constitute the rendering of goods,
services, or a direct benefit to the  commission 
 department  .
   (5) The amount of any grant awarded pursuant to this article to a
low-income individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received.
  SEC. 139.  Section 25434 of the Public Resources Code is amended to
read:
   25434.  The  commission   department 
may contract with one or more business entities capable of supplying
or providing goods or services necessary for the  commission
  department  to carry out the responsibilities for
the programs conducted pursuant to this article, and shall contract
with one or more business entities to evaluate the effectiveness of
the programs implemented pursuant to subdivision (a) of Section
25433.5. The  commission   department  may
select an entity on a sole source basis for one or both of those
purposes if the cost to the state will be reasonable and the 
commission   department  determines that it is in
the best interest of the state.
  SEC. 140.  Section 25434.5 of the Public Resources Code is amended
to read:
   25434.5.  As used in this article, the following terms have the
following meanings:
   (a) "Eligible construction or retrofit project" means a project
for making improvements to a home or building in existence on
 the effective date of the act adding this section 
 April 12, 2001  , through an addition, alteration, or
repair, which effectively increases the energy efficiency or reduces
the energy consumption of the home or building as specified by the
 commission's   departmental  guidelines
under paragraph (2) of subdivision (f) of Section 14 of  the
act that added this section   Chapter 8 of the Statutes
of the First Extraordinary Session of 2001  . The improvements
shall be deemed to be cost-effective.
   (b) "Low income" means an individual with a gross annual income
equal to or less than 200 percent of the federal poverty level.
   (c) "Small business" means  any  a 
small business as defined in paragraph (1) of subdivision (d) of
Section 14837 of the Government Code.
  SEC. 141.  Section 25435 of the Public Resources Code is amended to
read:
   25435.  The  commission   department 
shall administer the Small Business Energy Efficient Refrigeration
Loan Program, as provided for in Section 25436.
  SEC. 142.  Section 25436 of the Public Resources Code is amended to
read:
   25436.  (a)  Within 45 days of the effective date of this
chapter, the commission   The department  shall
implement a Small Business Energy Efficient Refrigeration Loan
Program for qualifying small businesses to purchase and install
energy efficient refrigeration equipment.
   (b) The program shall offer loans at 3 percent interest on terms
that will ensure the small business owner will repay the loan over
time in accordance with terms established by the  Energy
Commission,   department,  but in no event may the
term exceed the useful life of the purchase.
   (c) The  commission   department  may
enter into agreements with lending institutions and qualifying
vendors to facilitate making and administering loans.  Any
  A  loan made by the  commission 
 department  for the purchase of equipment shall be secured
against the equipment purchased.
  SEC. 143.  Section 25441 of the Public Resources Code is amended to
read:
   25441.  The  commission   department 
shall provide financial assistance to local jurisdictions for the
purpose of providing staff training and support services, including,
but not limited to, planning design, permitting, energy conservation,
comprehensive energy management, project evaluation, and development
of alternative energy resources.
  SEC. 144.  Section 25442 of the Public Resources Code is amended to
read:
   25442.  The  commission  department 
shall provide loans to local jurisdictions for all of the following
purposes:
   (a) Purchase, maintenance, and evaluation of energy efficient 
or peak load reduction  equipment for existing  and new
  or planned  facilities, including, but not
limited to, equipment related to lights, motors, pumps, water and
wastewater systems, boilers, heating, and air conditioning.
   (b) Purchase, maintenance, and evaluation of small power
production systems, including, but not limited to, wind,
cogeneration, photovoltaics, geothermal, and hydroelectric systems.
   (c)  Improve   Improvement of  the
operating efficiency of existing local transportation systems.
  SEC. 145.  Section 25442.5 of the Public Resources Code is amended
to read:
   25442.5.  The  commission   department 
may award financial assistance for project audits, feasibility
studies, engineering and design, and legal and financial analysis
related to the purposes of Section 25442.
  SEC. 146.  Section 25442.7 of the Public Resources Code is amended
to read:
   25442.7.  (a) Loans under this article may not exceed five million
dollars ($5,000,000) for any one local jurisdiction unless the
 commission   department  determines
 , by unanimous vote,  that the public interest and
objectives of this chapter would be better served at a higher loan
amount.
   (b) Loan repayments shall be made in accordance with a schedule
established by the  commission.   department.
 Repayment of loans shall be made in full unless the 
commission   department  determines  , by
unanimous vote,  that the public interest and objectives of
this chapter would be better served by negotiating a reduced loan
repayment for a project that fails to meet the technical or financial
performance criteria through no fault of the local jurisdiction.
  SEC. 147.  Section 25443 of the Public Resources Code is amended to
read:
   25443.  (a) Principal and interest payments on loans under this
article shall be returned to the  commission  
department  and shall be used to make additional loans to local
jurisdictions pursuant to Section 25442 or to provide financial
assistance to local jurisdictions pursuant to Section 25441.
   (b) Notwithstanding any other provision of law, the 
commission   department  shall, unless it
determines that the purposes of this chapter would be better served
by establishing an alternative interest rate schedule, periodically
set interest rates on the loans based on surveys of existing
financial markets and at rates not less than 3 percent per annum.
  SEC. 148.  Section 25443.5 of the Public Resources Code is amended
to read:
   25443.5.  (a) In furtherance of the purposes of the 
commission   department  as set forth in this
chapter, the  commission   department  has
the power and authority to do all of the following:
   (1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority  ,   and the California
Infrastructure and Economic Development Bank  , and the
California Consumer Power and Conservation Financing Authority
 from the proceeds of revenue bonds issued by  any
  either  of those agencies.
   (2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410).
   (3) Sell loans made pursuant to this chapter or Chapter 5.2
(commencing with Section 25410), at prices determined in the sole
discretion of the  commission,   department,
 to the California Economic Development Financing Authority
 ,   and  the California Infrastructure and
Economic Development Bank,  and the California Consumer
Power and Conservation Financing Authority  to raise funds
to enable the  commission   department  to
make loans to eligible institutions.
   (4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the 
California Consumer Power and Conservation Financing Authority
  department  as conditions of issuing bonds to
fund loans to, or the purchase of loans from, the  commission
  department  .
   (b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the  commission   department
 may enter into pledge agreements setting forth the terms and
conditions pursuant to which the  commission  
department is pledging loans or the principal and interest
payment on loans, and may also agree to have the loans held by bond
trustees or by independent collateral or escrow agents and to direct
that payments received on those loans be paid to those trustee,
collateral, or escrow agents.
   (c) The  commission   department  may
employ financial consultants, legal advisers, accountants, and other
service providers, as may be necessary in its judgment, in connection
with activities pursuant to this chapter.
   (d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.2 (commencing with Section 25410), and
is supplemental and additional to powers conferred by other laws.
  SEC. 149.  Section 25445 of the Public Resources Code is amended to
read:
   25445.  The  commission   department 
shall design a local jurisdiction energy assistance program for the
purpose of providing financial assistance under Article 2 (commencing
with Section 25441) and providing loans under Article 3 (commencing
with Section 25442). A local jurisdiction's energy assistance program
shall be funded through the commission's existing local government
assistance programs, except that if a project is not eligible for
funding under an existing program, the  commission 
 department  may fund the project under this chapter.
  SEC. 150.  Section 25449 of the Public Resources Code is amended to
read:
   25449.  The  commission   department 
shall enter into an agreement with the Regents of the University of
California, the Trustees of the California State University, and the
Board of Governors of the California Community Colleges for the
expenditure of petroleum violation escrow funds to supplement, and
not supplant, other available funds to improve energy efficiency at
state-supported universities and colleges under their respective
jurisdictions by funding projects involving any of the following:
   (a) Data collection.
   (b) Establishment of operations and maintenance standards.
   (c) Staff training.
   (d) Ongoing energy equipment maintenance.
   (e) Projects involving heating, ventilation, air conditioning, and
lighting equipment.
  SEC. 151.  Section 25449.1 of the Public Resources Code is amended
to read:
   25449.1.  The  commission   department 
shall enter into an agreement with the State Department of Education
to expend petroleum violation escrow funds to supplement, and not
supplant, other available funds in order to provide loans to school
districts to purchase, maintain, and evaluate energy efficient
equipment  and   ,  small power production
systems  , and peak load   reduction equipment  .
  SEC. 152.  Section 25449.2 of the Public Resources Code is
repealed. 
   25449.2.  Not later than three years after the imposition of any
fees pursuant to this chapter, the commission shall report to the
Legislature in the biennial energy conservation report required by
Section 25401.1, on the effect of those fees on alternative public
and private financing for public sector programs. 
  SEC. 153.  Section 25449.3 of the Public Resources Code is amended
to read:
   25449.3.  (a) The Local Jurisdiction Energy Assistance Account is
hereby created in the General Fund. All money appropriated for
purposes of this chapter and all money received from local
jurisdictions from loan repayments shall be deposited in the account
and disbursed by the Controller as authorized by the 
commission   department  .
   (b) The  commission   department  may
charge a fee for the services provided under this chapter.
   (c) The  commission   department  may
contract for services to be performed by eligible institutions, as
defined in subdivision (c) of Section 25411. Those services may
include, but are not limited to, performance of a feasibility
analysis, and providing project design, field evaluation, and
operation and training assistance. The amount expended for contract
services may not exceed 10 percent of the annual scheduled loan
repayment to the Local Jurisdiction Energy Assistance Account, as
determined by the  commission   department 
not later than July 1 of each fiscal year.
  SEC. 154.  Section 25449.4 of the Public Resources Code is amended
to read:
   25449.4.  (a) Except as provided in subdivision (b), this chapter
shall remain in effect until January 1,  2011,  
2026,  and as of that date is repealed, unless a later enacted
statute which is enacted before January 1,  2011, 
 2026,  deletes or extends that date.
   (b) All loans outstanding as of January 1,  2011,
  2026,  shall continue to be repaid in accordance
with a schedule established by the commission pursuant to Section
25442.7, until paid in full. All unexpended funds in the Local
Jurisdiction Energy Assistance Account on January 1,  2011,
  2026,  and thereafter, except to the extent that
those funds are encumbered pursuant to Section 25443.5, shall be
deposited in the Federal Trust Fund and be available for the purposes
for which federal oil overcharge funds are available pursuant to
court judgment or federal agency order.
  SEC. 155.  Section 25494 of the Public Resources Code is amended to
read:
   25494.  Not later than July 31, 1978, the  commission
  department  shall prepare a manual outlining a
methodology by which governmental agencies and the general public may
at their option compare the lifecycle costs of various building
design alternatives. This manual will provide the information and
procedures necessary to evaluate a building's lifecycle costs in the
microclimate and utility service area where it is to be built.
                                    SEC. 156.  Section 25496 of the
Public Resources Code is amended to read:
   25496.  No later than July 1, 1978, the commission shall develop
and make available to government agencies and the general public to
be utilized at their option lighting standards for existing
buildings. These standards shall address, but not be limited to, task
and general area lighting levels, light switching and control
mechanisms, and lighting energy budgets. The  commission
  department  may provide advice and
recommendations to the public or any governmental agency as to the
standards.
  SEC. 157.  Section 25500 of the Public Resources Code is amended to
read:
   25500.   (a)    In accordance with  the
provisions of  this division, the  secretary, in
consultation with the  commission  ,  shall have the
exclusive power to certify all sites and related facilities in the
state, whether a new site and related facility or a change or
addition to an existing facility. The issuance of a certificate by
the  commission   secretary  shall be in
lieu of any permit, certificate, or similar document required by any
state, local or regional agency, or federal agency to the extent
permitted by federal law, for such use of the site and related
facilities, and shall supersede any applicable statute, ordinance, or
regulation of any state, local, or regional agency, or federal
agency to the extent permitted by federal law. 
    After
    (b)     After  the effective date of
this division,  no  construction of any
  a  facility or modification of  any
  an  existing facility shall  not  be
commenced without first obtaining certification for  any such
  the  site and related facility by the 
commission,   secretary,  as prescribed in this
division.
  SEC. 158.  Section 25500.5 of the Public Resources Code is amended
to read:
   25500.5.  The  commission   secretary 
shall certify sufficient sites and related facilities  which
  that  are required to provide a supply of
electric power sufficient to  accomodate  
accommodate  the demand projected in the most recent forecast of
statewide and service area electric power demands adopted pursuant
to subdivision (b) of Section 25309.
  SEC. 159.  Section 25501 of the Public Resources Code is amended to
read:
   25501.  This chapter does not apply to any site or related
facility  for which the Public Utilities Commission has
issued a certificate of public convenience and necessity or which any
municipal utility has approved before January 7, 1975. 
 that was not subject to this chapter prior to January 1, 2010,
and that, as of July 1, 2010, has an application accepted as complete
by the agenc   y with jurisdiction on December 31, 2009.

  SEC. 160.  Section 25501.7 of the Public Resources Code is amended
to read:
   25501.7.   Any   A  person proposing to
construct a facility or a site to which Section 25501 applies may
waive the exclusion of  such   the  site
and related facility from the provisions of this chapter by
submitting to the commission  a notice to that effect on or
after July 1, 1976,   an application  and any and
all of the provisions of this chapter shall apply to the construction
of  such   the  facility.
  SEC. 161.  Section 25502 of the Public Resources Code is repealed.

   25502.  Each person proposing to construct a thermal powerplant or
electric transmission line on a site shall submit to the commission
a notice of intention to file an application for the certification of
the site and related facility or facilities. The notice shall be an
attempt primarily to determine the suitability of the proposed sites
to accommodate the facilities and to determine the general conformity
of the proposed sites and related facilities with standards of the
commission and assessments of need adopted pursuant to Sections 25305
to 25308, inclusive. The notice shall be in the form prescribed by
the commission and shall be supported by such information as the
commission may require.
   Any site and related facility once found to be acceptable pursuant
to Section 25516 is, and shall continue to be, eligible for
consideration in an application for certification without further
proceedings required for a notice under this chapter. 
  SEC. 162.  Section 25503 of the Public Resources Code is repealed.

   25503.  Each notice of intention to file an application shall
contain at least three alternative sites and related facilities, at
least one of which shall not be located in whole or in part in the
coastal zone. In addition, the alternative sites and related
electrical facilities may be proposed from an inventory of sites
which have previously been approved by the commission in a notice of
intent or may be proposed from sites previously examined. 
  SEC. 163.  Section 25504 of the Public Resources Code is repealed.

   25504.  The notice of intention shall include a statement by the
applicant describing the location of the proposed sites by section or
sections, range and township, and county; a summary of the proposed
design criteria of the facilities; the type or types of fuels to be
used; the methods of construction and operation; the proposed
location of facilities and structures on each site; a preliminary
statement of the relative economic, technological, and environmental
advantages and disadvantages of the alternative site and related
facility proposals; a statement of need for the facility and
information showing the compatibility of the proposals with the most
recent electricity report issued pursuant to Section 25308; and any
other information that an electric utility deems desirable to submit
to the commission. 
  SEC. 164.  Section 25504.5 of the Public Resources Code is
repealed. 
   25504.5.  An applicant may, in the notice, propose a site to be
approved which will accomodate a potential maximum electric
generating capacity in excess of the capacity being proposed for the
initial approval of the commission. If such a proposal is made, the
notice shall include, but not be limited to, in addition to the
information specified in Section 25504, all of the following:
   (a) The number, type, and energy source of electric generating
units which the site is proposed ultimately to accomodate and the
maximum generating capacity for each unit.
   (b) The projected installation schedule for each unit.
   (c) The impact at the site when fully developed, on the
environment and public health and safety.
   (d) The amount and sources of cooling water needed at the fully
developed site.
   (e) The location and specifications of auxiliary facilities
planned for each state of development including, but not limited to,
pipelines, waste storage facilities, fuel storage facilities,
switchyards, coolant lines, coolant outfalls, and cooling ponds,
lakes, or towers. 
  SEC. 165.  Section 25505 of the Public Resources Code is repealed.

   25505.  Upon receipt of a notice, the commission shall cause a
summary of the notice to be published in a newspaper of general
circulation in each county in which the sites and related facilities,
or any part thereof, designated in the notice are proposed to be
located. The commission shall also transmit a copy of the notice to
the Public Utilities Commission, for sites and related facilities
requiring a certificate of public convenience and necessity, and to
other federal, state, regional, and local agencies having an interest
in matters pertinent to the proposed facilities at any of the
alternative sites. A copy of the notice shall also be transmitted to
the Attorney General. 
  SEC. 166.  Section 25506 of the Public Resources Code is repealed.

   25506.  The commission shall request the appropriate local,
regional, state, and federal agencies to make comments and
recommendations regarding the design, operation, and location of the
facilities designated in the notice, in relation to environmental
quality, public health and safety, and other factors on which they
may have expertise. 
  SEC. 167.  Section 25506.5 of the Public Resources Code is
repealed. 
   25506.5.  The commission shall request the Public Utilities
Commission, for sites and related facilities requiring a certificate
of public convenience and necessity, to make comments and
recommendations regarding the design, operation, and location of the
facilities designated in the notice in relation to the economic,
financial, rate, system reliability, and service implications of the
proposed facilities. 
  SEC. 168.  Section 25507 of the Public Resources Code is repealed.

   25507.  (a) If any alternative site and related facility proposed
in the notice is proposed to be located, in whole or in part, within
the coastal zone, the commission shall transmit a copy of the notice
to the California Coastal Commission. The California Coastal
Commission shall analyze the notice and prepare the report and
findings prescribed by subdivision (d) of Section 30413 prior to
commencement of hearings pursuant to Section 25513.
   (b) If any alternative site and related facility proposed in the
notice is proposed to be located, in whole or in part, within the
Suisun Marsh, or within the jurisdiction of the San Francisco Bay
Conservation and Development Commission, the commission shall
transmit a copy of the notice to the San Francisco Bay Conservation
and Development Commission. The San Francisco Bay Conservation and
Development Commission shall analyze the notice and prepare the
report and findings prescribed by subdivision (d) of Section 66645 of
the Government Code prior to commencement of hearings pursuant to
Section 25513. 
  SEC. 169.  Section 25508 of the Public Resources Code is amended to
read:
   25508.  The commission shall cooperate with, and render advice to,
the California Coastal Commission and the San Francisco Bay
Conservation and Development Commission in studying applications for
any site and related facility proposed to be located, in whole or in
part, within the coastal zone, the Suisun Marsh, or the jurisdiction
of the San Francisco Bay Conservation and Development Commission if
requested by the California Coastal Commission or the San Francisco
Bay Conservation and Development Commission, as the case may be. The
California Coastal Commission or the San Francisco Bay Conservation
and Development Commission, as the case may be, may participate in
public hearings  on the notice and  on the
application for site and related facility certification as an
interested party in  such   those 
proceedings.
  SEC. 170.  Section 25509 of the Public Resources Code is repealed.

   25509.  Within 45 days of the filing of the notice, the commission
shall conduct public informational presentations in the county or
counties in which the proposed sites and related facilities are
located. The place of such public informational presentations shall
be as close as practicable to the proposed sites. Such presentations
shall be for the purpose of setting forth the electrical demand basis
for the proposed site and related facility and providing knowledge
and understanding of the proposed facilities and sites. 
  SEC. 171.  Section 25509.5 of the Public Resources Code is
repealed. 
   25509.5.  No sooner than 15 days after the conclusion of the
presentations pursuant to Section 25509, the commission shall
commence nonadjudicatory hearings. Such hearings shall identify
issues for adjudication in hearings pursuant to Section 25513, issues
which may be eliminated from further consideration in the notice
proceedings, and issues which should be deferred to the certification
proceeding. Any person may participate to the extent deemed
reasonable and relevant by the presiding member of the commission in
any such hearing. In scheduling such hearings the presiding member
shall confer with the public adviser to provide that the hearing
dates and locations are as convenient as possible for interested
parties and the public. Such hearings shall be conducted in order to
accomplish all of the following purposes:
   (a) To set forth the electrical demand basis for the proposed site
and related facility.
   (b) To provide knowledge and understanding of proposed facilities
and sites.
   (c) To obtain the views and comments of the public, parties, and
concerned governmental agencies on the environmental, public health
and safety, economic, social, and land use impacts of the facility at
the proposed sites.
   (d) To solicit information regarding reasonable alternative
sources of the electric generating capacity or energy to be provided
by alternative sites and related facilities, or combinations thereof,
which will better carry out the policies and objectives of this
division. 
  SEC. 172.  Section 25510 of the Public Resources Code is repealed.

   25510.  After the conclusion of such hearings, and no later than
150 days after filing of the notice, the commission shall prepare and
make public a summary and hearing order on the notice of intention
to file an application. The commission may include within the summary
and hearing order any other alternatives proposed by the commission
or presented to the commission at a public hearing prior to
preparation of the summary and hearing order. The summary and hearing
order shall be published and made available to the public and to
interested local, regional, state, and federal agencies. 
  SEC. 173.  Section 25511 of the Public Resources Code is repealed.

   25511.  The commission shall review the factors related to safety
and reliability of the facilities at each of the alternative sites
designated in the notice. In addition to other information requested
of the applicant, the commission shall, in determining the
appropriateness of sites and related facilities, require detailed
information on proposed emergency systems and safety precautions,
plans for transport, handling and storage of wastes and fuels,
proposed methods to prevent illegal diversion of nuclear fuels,
special design features to account for seismic and other potential
hazards, proposed methods to control density of population in areas
surrounding nuclear powerplants, and such other information as the
commission may determine to be relevant to the reliability and safety
of the facility at the proposed sites. The commission shall analyze
the information provided by the applicant, supplementing it, where
necessary, by onsite investigations and other studies. The commission
shall determine the adequacy of measures proposed by the applicant
to protect public health and safety, and shall include its findings
in the final report required by Section 25514. 
  SEC. 174.  Section 25512 of the Public Resources Code is repealed.

   25512.  The summary and hearing order shall be based upon the
record of the proceeding including statements or documents presented
during any hearing or informational presentation on the notice, the
comments transmitted by the Public Utilities Commission and local,
regional, state, and federal agencies and the public to the
commission, and independent studies conducted by the commission's
staff.
   The summary and hearing order shall:
   (a) Identify those issues for consideration in hearings pursuant
to Section 25513.
   (b) Identify those issues which may be eliminated from further
consideration in the notice of intention proceedings.
   (c) Identify those issues which should be deferred to the
certification proceeding.
   (d) Contain proposed findings on matters relevant to the
provisions of Section 25514.
   (e) Specify dates for the adjudicatory hearings. 
  SEC. 175.  Section 25512.5 of the Public Resources Code is
repealed. 
   25512.5.  Within 15 days of the publication of the summary and
hearing order, a copy will be distributed to any person who requests
such copy. 
  SEC. 176.  Section 25513 of the Public Resources Code is repealed.

   25513.  No earlier than 30 days after distribution of the summary
and hearing order, the commission shall commence adjudicatory
hearings pursuant to the hearing order. 
  SEC. 177.  Section 25514 of the Public Resources Code is repealed.

   25514.  After conclusion of the hearings held pursuant to Section
25513 and no later than 300 days after the filing of the notice, a
final report shall be prepared and distributed. The final report
shall include, but not be limited to, all of the following:
   (a) The findings and conclusions of the commission regarding the
conformity of alternative sites and related facilities designated in
the notice or considered in the notice of intention proceeding with
both of the following:
   (1) The 12-year forecast of statewide and service area electric
power demands adopted pursuant to subdivision (e) of Section 25305,
except as provided in Section 25514.5.
   (2) Applicable local, regional, state, and federal standards,
ordinances, and laws, including any long-range land use plans or
guidelines adopted by the state or by any local or regional planning
agency, which would be applicable but for the exclusive authority of
the commission to certify sites and related facilities; and the
standards adopted by the commission pursuant to Section 25216.3.
   (b) Any findings and comments submitted by the California Coastal
Commission pursuant to Section 25507 and subdivision (d) of Section
30413.
   (c) Any findings and comments submitted by the San Francisco Bay
Conservation and Development Commission pursuant to Section 25507 of
this code and subdivision (d) of Section 66645 of the Government
Code.
   (d) The commission's findings on the acceptability and relative
merit of each alternative siting proposal designated in the notice or
presented at the hearings and reviewed by the commission. The
specific findings of relative merit shall be made pursuant to
Sections 25502 to 25516, inclusive. In its findings on any
alternative siting proposal, the commission may specify modification
in the design, construction, location, or other conditions which will
meet the standards, policies, and guidelines established by the
commission.
   (e) Findings and conclusions with respect to the safety and
reliability of the facility or facilities at each of the sites
designated in the notice, as determined by the commission pursuant to
Section 25511, and any conditions, modifications, or criteria
proposed for any site and related facility proposal resulting from
the findings and conclusions.
   (f) Findings and conclusions as to whether increased property
taxes due to the construction of the project are sufficient to
support needed local improvements and public services required to
serve the project. 
  SEC. 178.  Section 25514.3 of the Public Resources Code is
repealed. 
   25514.3.  In specifying any modifications, conditions, or criteria
pursuant to Section 25514, for sites and related facilities
requiring a certificate of public convenience and necessity, the
commission shall request the comments and recommendations of the
Public Utilities Commission on the economic, financial, rate, system
reliability, and service implications of such modifications,
conditions, or criteria. 
  SEC. 179.  Section 25514.5 of the Public Resources Code is
repealed. 
   25514.5.  In considering the acceptability of a site proposed to
accommodate ultimately additional power-generating capacity, the
commission, in determining, pursuant to Sections 25514 and 25512, the
conformity of the facilities proposed in the notice with the 12-year
forecast of statewide and service area electric power demands
adopted pursuant to subdivision (e) of Section 25305, shall base its
determination only on such initial facilities as are proposed for
operation within the forthcoming 12-year period. Additional
facilities projected to be operating at the site at a time beyond the
forthcoming 12-year period shall not be considered in the
determination of conformity with the electric power demand forecast.

  SEC. 180.  Section 25515 of the Public Resources Code is repealed.

   25515.  No later than 30 days after the final report is
distributed, a hearing or hearings on the final report shall be
commenced. Such hearings shall be concluded within 15 days of their
commencement. 
  SEC. 181.  Section 25516 of the Public Resources Code is repealed.

   25516.  The approval of the notice by the commission shall be
based upon findings pursuant to Section 25514. The notice shall not
be approved unless the commission finds at least two alternative site
and related facility proposals considered in the commission's final
report as acceptable. If the commission does not find at least two
sites and related facilities acceptable, additional sites and related
facilities may be proposed by the applicant which shall be
considered in the same manner as those proposed in the original
notice.
   If the commission finds that a good faith effort has been made by
the person submitting the notice to find an acceptable alternative
site and related facility and that there is only one acceptable site
and related facility among those submitted, the commission may
approve the notice based on the one site and related facility. If a
notice is approved based on one site and related facility, the
commission may require a new notice to be filed to identify
acceptable alternative sites and related facilities for the one site
and related facility approved unless suitable alternative sites and
related facilities have been approved by the commission in previous
notice of intention proceedings.
   If the commission finds that additional electric generating
capacity is needed to accommodate the electric power demand forecast
pursuant to subdivision (e) of Section 25305 and, after the
commission finds that a good faith effort was made by the person
submitting the notice to propose an acceptable site and related
facility, it fails to find any proposed site and related facility to
be acceptable, the commission shall designate, at the request of and
at the expense of the person submitting the notice, a feasible site
and related facility for providing the needed electric generating
capacity. 
  SEC. 182.  Section 25516.1 of the Public Resources Code is
repealed. 
   25516.1.  If a site and related facility found to be acceptable by
the commission pursuant to Section 25516 is located in the coastal
zone, the Suisun Marsh, or the jurisdiction of the San Francisco Bay
Conservation and Development Commission, no application for
certification may be filed pursuant to Section 25519 unless the
commission has determined, pursuant to Section 25514, that such site
and related facility have greater relative merit than available
alternative sites and related facilities for an applicant's service
area which have been determined to be acceptable by the commission
pursuant to Section 25516. 
  SEC. 183.  Section 25516.5 of the Public Resources Code is
repealed. 
   25516.5.  On a notice which proposes an expanded ultimate electric
generating capacity for a site, the commission may, based upon
findings pursuant to Section 25514, either approve the notice only
for the initial facility or facilities proposed for operation within
the forthcoming 12-year period or may approve the notice for the
initial facility or facilities and find the site acceptable for
additional generating capacity of the type tentatively proposed. The
maximum allowable amount and type of such additional capacity shall
be determined by the commission.
   If a notice is approved which includes a finding that a particular
site is suitable to accommodate a particular additional generating
capacity, the site shall be designated a potential multiple-facility
site. The commission may, in determining the acceptability of a
potential multiple-facility site, specify conditions or criteria
necessary to insure that future additional facilities will not exceed
the limitations of the site. 
  SEC. 184.  Section 25516.6 of the Public Resources Code is
repealed. 

25516.6.  (a) Except as otherwise expressly provided in this
division, the commission shall issue its written decision on the
notice not later than 12 months after the notice is filed, or at any
later time as is mutually agreed upon by the commission and the
applicant.
   (b) The commission shall determine, within 45 days after it
receives the notice, whether the notice is complete. If the
commission determines that the notice is complete, the notice shall
be deemed filed for the purpose of this section on the date that this
determination is made. If the commission determines that the notice
is incomplete, the commission shall specify, in writing, those parts
of the notice which are incomplete and shall indicate the manner in
which it can be made complete. If the applicant submits additional
data to complete the notice, the commission shall determine, within
30 days after receipt of that data, whether the data is sufficient to
make the notice complete. The notice shall be deemed filed on the
date the commission determines the notice is complete if the
commission has adopted regulations specifying the informational
requirements for a complete notice, but if the commission has not
adopted regulations, the notice shall be deemed filed on the last
date the commission receives any additional data that completes the
notice. 
  SEC. 185.  Section 25517 of the Public Resources Code is amended to
read:
   25517.  Except as provided in Section 25501,  no 
construction of  any thermal   a 
powerplant or electric transmission line shall  not  be
commenced by  any   an  electric utility
without first obtaining certification as prescribed in this division.
Any onsite improvements not qualifying as construction may be
required to be restored as determined by the commission to be
necessary to protect the environment, if certification is denied.
  SEC. 186.  Section 25518 of the Public Resources Code is amended to
read:
   25518.  The Public Utilities Commission shall  not  issue
 no  a  certificate of public convenience
and necessity for a site or related electrical facilities unless the
utility has obtained a certificate from the  commission
  secretary  .
  SEC. 187.  Section 25519 of the Public Resources Code is amended to
read:
   25519.  (a) In order to obtain certification for a site and
related facility, an application for certification of the site and
related facility shall be filed with the commission. The application
shall be in a form prescribed by the commission  and shall be
for a site and related facility that has been found to be acceptable
by the commission pursuant to Section 25516, or for an additional
facility at a site that has been designated a potential
multiple-facility site pursuant to Section 25514.5 and found to be
acceptable pursuant to Sections 25516 and 25516.5. An application for
an additional facility at a potential multiple-facility site shall
be subject to the conditions and review specified in Section 25520.5.
An application may not be filed for a site and related facility, if
there is no suitable alternative for the site and related facility
that was previously found to be acceptable by the commission, unless
the commission has approved the notice based on the one site as
specified in Section 25516  .
   (b) The commission, upon its own motion or in response to the
request of any party, may require the applicant to submit any
information, document, or data, in addition to the attachments
required by subdivision (i), that it determines is reasonably
necessary to make any decision on the application.
   (c) The commission shall be the lead agency as provided in Section
21165 for all projects that require certification pursuant to this
chapter and for projects that are exempted from such certification
pursuant to Section 25541. Unless the commission's regulatory program
governing site and facility certification and related proceedings
are certified by the Resources Agency pursuant to Section 21080.5, an
environmental impact report shall be completed within one year after
receipt of the application. If the commission prepares a document or
documents in the place of an environmental impact report or negative
declaration under a regulatory program certified pursuant to Section
21080.5, any other public agency that must make a decision that is
subject to the California Environmental Quality Act, Division 13
(commencing with Section 21000), on a site or related facility, shall
use the document or documents prepared by the commission in the same
manner as they would use an environmental impact report or negative
declaration prepared by a lead agency.
   (d) If the site and related facility specified in the application
is proposed to be located in the coastal zone, the commission shall
transmit a copy of the application to the California Coastal
Commission for its review and comments.
   (e) If the site and related facility specified in the application
is proposed to be located in the Suisun Marsh or the jurisdiction of
the San Francisco Bay Conservation and Development Commission, the
commission shall transmit a copy of the application to the San
Francisco Bay Conservation and Development Commission for its review
and comments.
   (f) Upon receipt of an application, the commission shall forward
the application to local governmental agencies having land use and
related jurisdiction in the area of the proposed site and related
facility. Those local agencies shall review the application and
submit comments on, among other things, the design of the facility,
architectural and aesthetic features of the facility, access to
highways, landscaping and grading, public use of lands in the area of
the facility, and other appropriate aspects of the design,
construction, or operation of the proposed site and related facility.

   (g) Upon receipt of an application, the commission shall cause a
summary of the application to be published in a newspaper of general
circulation in the county in which the site and related facilities,
or any part thereof, designated in the application, is proposed to be
located. The commission shall transmit a copy of the application to
each federal and state agency having jurisdiction or special interest
in matters pertinent to the proposed site and related facilities and
to the Attorney General.
   (h) Local and state agencies having jurisdiction or special
interest in matters pertinent to the proposed site and related
facilities shall provide their comments and recommendations on the
project within 180 days of the date of filing of an application.
   (i) The adviser shall require that adequate notice is given to the
public and that the procedures specified by this division are
complied with.
   (j) For any proposed site and related facility requiring a
certificate of public convenience and necessity, the commission shall
transmit a copy of the application to the Public Utilities
Commission and request the comments and recommendations of the Public
Utilities Commission on the economic, financial, rate, system
reliability, and service implications of the proposed site and
related facility. If the commission requires modification of the
proposed facility, the commission shall consult with the Public
Utilities Commission regarding the economic, financial, rate, system
reliability, and service implications of those modifications.
   (k) The commission shall transmit a copy of the application to any
governmental agency not specifically mentioned in this act, but
which it finds has any information or interest in the proposed site
and related facilities, and shall invite the comments and
recommendations of each agency. The commission shall request any
relevant laws, ordinances, or regulations that an agency has
promulgated or administered.
   () An application for certification of any site and related
facilities shall contain a listing of every federal agency from which
any approval or authorization concerning the proposed site is
required, specifying the approvals or authorizations obtained at the
time of the application and the schedule for obtaining any approvals
or authorizations pending.
  SEC. 188.  Section 25520 of the Public Resources Code is amended to
read:
   25520.  The application shall contain all of the following
information and any other information that the commission by
regulation may require:
   (a) A detailed description of the design, construction, and
operation of the proposed facility.
   (b) Safety and reliability information, including,  in
addition to documentation previously provided pursuant to Section
25511,   but not limited to, planned provisions for
emergency operations and shutdowns.
   (c) Available site information, including maps and descriptions of
present and proposed development and, as appropriate, geological,
aesthetic, ecological, seismic, water supply, population, and load
center data, and justification for the particular site proposed.
   (d) Any other information relating to the design, operation, and
siting of the facility that the commission may specify.
   (e) A description of the facility, the cost of the facility, the
fuel to be used, the source of fuel, fuel cost, plant service life
and capacity factor, and generating cost per kilowatthour.
   (f) A description of any electric transmission lines, including
the estimated cost of the proposed electric transmission line; a map
in suitable scale of the proposed routing showing details of the
rights-of-way in the vicinity of settled areas, parks, recreational
areas, and scenic areas, and existing transmission lines within one
mile of the proposed route; justification for the route, and a
preliminary description of the effect of the proposed electric
transmission line on the environment, ecology, and scenic, historic,
and recreational values. 
   (g) A discussion of the applicant's site selection criteria, any
alternative sites that the applicant considered for the project, and
the reasons why the applicant chose the proposed site. This
subdivision does not apply to an application for certification of any
of the following:  
   (1) A modification of an existing facility.  
   (2) A powerplant that can be sited, in a technologically or
economically feasible manner, only at or near the energy source.
 
   (3) A cogeneration project at an existing industrial site. 

   (4) A powerplant at an existing industrial site, if the commission
finds that the project has a strong relationship to the existing
industrial site and that it is therefore reasonable not to analyze
alternative sites for the project. 
  SEC. 189.  Section 25520.5 of the Public Resources Code is
repealed. 
   25520.5.  (a) In reviewing an application for an additional
facility at a potential multiple-facility site, the commission shall
undertake a reconsideration of its prior determinations in the final
report on the notice for the site issued pursuant to Section 25514,
based on current conditions and other reasonable and feasible
alternatives to the proposed facility.
   (b) Within 180 days of the filing of the application for an
additional facility at a potential multiple-facility site and after
adequate public hearings, the commission shall issue its decision on
the acceptability of the proposed facility based on the
reconsideration specified in subdivision (a) of this section. A
negative determination shall be the final decision of the commission
on the application and subject to judicial review pursuant to Section
25531. An affirmative determination shall not be a final decision of
the commission on the application.
   (c) The decision of the commission on an application for an
additional facility at a potential multiple-facility site receiving a
favorable determination pursuant to subdivision (b) of this section
shall be issued within 24 months after the filing of the application
or at such later time as is mutually agreed upon by the commission
and the applicant. 
  SEC. 190.  Section 25522 of the Public Resources Code is amended to
read:
   25522.  (a) Except as provided in subdivision (c) of
Section 25520.5, within 18  Within 12  months of
the filing of an application for certification  , or within
12 months if it is filed within one year of the commission's approval
of the notice of intent,  or at any later time as is
mutually agreed by the commission and the applicant, the 
commission   secretary  shall issue a written
decision as to the application.
   (b) The commission shall determine, within 45 days after it
receives the application, whether the application is complete. If the
commission determines that the application is complete, the
application shall be deemed filed for purposes of this section on the
date that this determination is made. If the commission determines
that the application is incomplete, the commission shall specify in
writing those parts of the application which are incomplete and shall
indicate the manner in which it can be made complete. If the
applicant submits additional data to complete the application, the
commission shall determine, within 30 days after receipt of that
data, whether the data is sufficient to make the application
complete. The application shall be deemed filed on the date when the
commission determines the application is complete if the commission
has adopted regulations specifying the informational requirements for
a complete application, but if the commission has not adopted
regulations, the application shall be deemed filed on the last date
the commission receives any additional data that completes the
application.
  SEC. 191.  Section 25523 of the Public Resources Code is amended to
read:
   25523.  The  commission   secretary 
shall prepare a written decision after the public hearing on an
application  , which   that  includes all
of the following:
   (a) Specific provisions relating to the manner in which the
proposed facility is to be designed, sited, and operated in order to
protect environmental quality and assure public health and safety.
   (b) In the case of a site to be located in the coastal zone,
specific provisions to meet the objectives of Division 20 (commencing
with Section 30000) as may be specified in the report submitted by
the California Coastal Commission pursuant to subdivision (d) of
Section 30413, unless the commission specifically finds that the
adoption of the provisions specified in the report would result in
greater adverse effect on the environment or that the provisions
proposed in the report would not be feasible.
   (c) In the case of a site to be located in the Suisun Marsh or in
the jurisdiction of the San Francisco Bay Conservation and
Development Commission, specific provisions to meet the requirements
of Division 19 (commencing with Section 29000) of this code or Title
7.2 (commencing with Section 66600) of the Government Code as may be
specified in the report submitted by the San Francisco Bay
Conservation and Development Commission pursuant to subdivision (d)
of Section 66645 of the Government Code, unless the commission
specifically finds that the adoption of the provisions specified in
the report would result in greater adverse effect on the environment
or the provisions proposed in the report would not be feasible.
   (d) (1) Findings regarding the conformity of the proposed site and
related facilities with standards adopted by the commission pursuant
to Section 25216.3 and subdivision (d) of Section 25402, with public
safety standards and the applicable air and water quality standards,
and with other applicable local, regional, state, and federal
standards, ordinances, or laws. If the  commission 
 secretary  finds that there is noncompliance with a state,
local, or regional ordinance or regulation in the application,
 it   he or she  shall consult and meet
with the state, local, or regional governmental agency concerned to
attempt to correct or eliminate the noncompliance. If the
noncompliance cannot be corrected or eliminated, the commission shall
inform the state, local, or regional governmental agency if 
it   he or she  makes the findings required by
Section 25525.
   (2) The  commission may   secretary shall
 not find that the proposed facility conforms with applicable
air quality standards pursuant to paragraph (1) unless the applicable
air pollution control district or air quality management district
certifies, prior to the licensing of the project by the 
commission,   secretary,  that complete emissions
offsets for the proposed facility have been identified and will be
obtained by the applicant within the time required by the district's
rules or unless the applicable air pollution control district or air
quality management district certifies that the applicant requires
emissions offsets to be obtained prior to the commencement of
operation consistent with Section 42314.3 of the Health and Safety
Code and prior to commencement of the operation of the proposed
facility. The  commission   secretary 
shall require as a condition of certification that the applicant
obtain any required emission offsets within the time required by the
applicable district rules, consistent with any applicable federal and
state laws and regulations, and prior to the commencement of the
operation of the proposed facility.
   (e) Provision for restoring the site as necessary to protect the
environment, if the  commission   secretary
 denies approval of the application.
   (f) In the case of a site and related facility using resource
recovery (waste-to-energy) technology, specific conditions requiring
that the facility be monitored to ensure compliance with paragraphs
(1), (2), (3), and (6) of subdivision (a) of Section 42315 of the
Health and Safety Code.
   (g) In the case of a facility, other than a resource recovery
facility subject to subdivision (f), specific conditions requiring
the facility to be monitored to ensure compliance with toxic air
contaminant control measures adopted by an air pollution control
district or air quality management district pursuant to subdivision
(d) of Section 39666 or Section 41700 of the Health and Safety Code,
whether the measures were adopted before or after issuance of a
determination of compliance by the district.
   (h) A discussion of any public benefits from the project
including, but not limited to, economic benefits, environmental
benefits, and electricity reliability benefits.
  SEC. 192.  Section 25524.1 of the Public Resources Code is amended
to read:
   25524.1.  (a) Except for the existing Diablo Canyon Units 1 and 2
owned by Pacific Gas and Electric Company and San Onofre Units 2 and
3 owned by Southern California Edison Company and San Diego Gas and
Electric Company,  no   a  nuclear fission
 thermal  powerplant requiring the reprocessing of
fuel rods, including any to which this chapter does not otherwise
apply, excepting any having a vested right as defined in this
section, shall  not  be permitted land use in the state or,
where applicable, certified by the commission until both of the
following conditions are met:
   (1) The commission finds that the United States through its
authorized agency has identified and approved, and there exists a
technology for the construction and operation of, nuclear fuel rod
reprocessing plants.
   (2) The commission has reported its findings and the reasons
therefor pursuant to paragraph (1) to the Legislature. That report
shall be assigned to the appropriate policy committees for review.
The  commission   secretary  may proceed to
certify nuclear fission thermal powerplants 100 legislative days
after reporting  its   the commission's 
findings unless within those 100 legislative days either house of the
Legislature adopts by a majority vote of its members a resolution
disaffirming the findings of the commission made pursuant to
paragraph (1).
   (3) A resolution of disaffirmance shall set forth the reasons for
the action and shall provide, to the extent possible, guidance to the
commission as to an appropriate method of bringing the commission's
findings into conformance with paragraph (1).
   (4) If a disaffirming resolution is adopted, the commission shall
reexamine its original findings consistent with matters raised in the
resolution. On conclusion of its reexamination, the commission shall
transmit its findings in writing, with the reasons therefor, to the
Legislature.
   (5) If the findings are that the conditions of paragraph (1) have
been met, the  commission   secretary  may
proceed to certify nuclear fission  thermal 
powerplants 100 legislative days after reporting its findings to the
Legislature unless within those 100 legislative days both houses of
the Legislature act by statute to declare the findings null and void
and takes appropriate action.
   (6) To allow sufficient time for the Legislature to act, the
reports of findings of the commission shall be submitted to the
Legislature at least six calendar months prior to the adjournment of
the Legislature sine die.
   (b) The commission shall further find on a case-by-case basis that
facilities with adequate capacity to reprocess nuclear fuel rods
from a certified nuclear facility or to store that fuel if that
storage is approved by an authorized agency of the United States are
in actual operation or will be in operation at the time that the
nuclear facility requires reprocessing or storage; provided, however,
that the storage of fuel is in an offsite location to the extent
necessary to provide continuous onsite full core reserve storage
capacity.
   (c) The commission shall continue to receive and process 
notices of intention and  applications for certification
pursuant to this division, but  the secretary  shall not
issue a decision pursuant to Section 25523 granting a certificate
until the requirements of this section have been met. All other
permits, licenses, approvals, or authorizations for the entry or use
of the land, including orders of court, which may be required may be
processed and granted by the governmental entity concerned, but
construction work to install permanent equipment or structures shall
not commence until the requirements of this section have been met.
  SEC. 193.  Section 25524.2 of the Public Resources Code is amended
to read:
   25524.2.  Except for the existing Diablo Canyon Units 1 and 2
owned by Pacific Gas and Electric Company and San Onofre Units 2 and
3 owned by Southern California Edison Company and San Diego Gas and
Electric Company,  no   a  nuclear fission
 thermal  powerplant, including any to which this
chapter does not otherwise apply, but excepting those exempted
herein, shall  not  be permitted land use in the state, or
where applicable, be certified by the  commission 
 secretary  until both of the following conditions have been
met:
   (a) The commission finds that there has been developed and that
the United States through its authorized agency has approved and
there exists a demonstrated technology or means for the disposal of
high-level nuclear waste.
   (b) (1) The commission has reported its findings and the reasons
therefor pursuant to paragraph (a) to the Legislature. That report
shall be assigned to the appropriate policy committees for review.
The  commission   secretary  may proceed to
certify nuclear fission thermal powerplants 100 legislative days
after reporting  its   the commission's 
findings unless within those 100 legislative days either house of the
Legislature adopts by a majority vote of its members a resolution
disaffirming the findings of the commission made pursuant to
subdivision (a).
   (2) A resolution of disaffirmance shall set forth the reasons for
the action and shall provide, to the extent possible, guidance to the
commission as to an appropriate method of bringing the commission's
findings into conformance with subdivision (a).
   (3) If a disaffirming resolution is adopted, the commission shall
reexamine its original findings consistent with matters raised in the
resolution. On conclusion of its reexamination, the commission shall
transmit its findings in writing, with the reasons therefor, to the
Legislature.
   (4) If the findings are that the conditions of subdivision (a)
have been met, the  commission   secretary 
may proceed to certify nuclear fission  thermal 
powerplants 100 legislative days after reporting its findings to the
Legislature unless within those 100 legislative days both houses of
the Legislature act by statute to declare the findings null and void
and take appropriate action.
   (5) To allow sufficient time for the Legislature to act, the
reports of findings of the commission shall be submitted to the
Legislature at least six calendar months prior to the adjournment of
the Legislature sine die.
   (c) As used in subdivision (a), "technology or means for the
disposal of high-level nuclear waste" means a method for the
permanent and terminal disposition of high-level nuclear waste.
Nothing in this section requires that facilities for the application
of that technology or means be available at the time that the
commission makes its findings. That disposition of high-level nuclear
waste does not preclude the possibility of an approved process for
retrieval of the waste.
   (d) The commission shall continue to receive and process 
notices of intention and  applications for certification
pursuant to this division but  the secretary  shall not
issue a decision pursuant to Section 25523 granting a certificate
until the requirements of this section have been met. All other
permits, licenses, approvals, or authorizations for the entry or use
of the land, including orders of court, which may be required may be
processed and granted by the governmental entity concerned, but
construction work to install permanent equipment or structures shall
not commence until the requirements of this section have been met.
  SEC. 194.  Section 25524.5 of the Public Resources Code is
repealed. 
   25524.5.  The commission shall not certify any facility which adds
generating capacity to a potential multiple-facility site in
                                      excess of the maximum allowable
capacity established by the commission pursuant to Section 25516.5,
unless the commission finds that exceeding the maximum allowable
capacity will not increase adverse environmental impacts or create
technological, seismic, or other difficulties beyond those already
found acceptable in the commission's findings on the notice for that
site pursuant to Sections 25516 and 25516.5. 
  SEC. 195.  Section 25525 of the Public Resources Code is amended to
read:
   25525.  The  commission may   secretary shall
 not certify a facility contained in the application 
when it   if he or she  finds, pursuant to
subdivision (d) of Section 25523, that the facility does not conform
with any applicable state, local, or regional standards, ordinances,
or laws, unless the  commission   secretary
 determines that the facility is required for public convenience
and necessity and that there are not more prudent and feasible means
of achieving public convenience and necessity. In making the
determination, the  commission   secretary 
shall consider the entire record of the proceeding, including, but
not limited to, the impacts of the facility on the environment,
consumer benefits, and electric system reliability. The 
commission may   secretary shall  not make a
finding in conflict with applicable federal law or regulation. The
basis for these findings shall be reduced to writing and submitted as
part of the record pursuant to Section 25523.
  SEC. 196.  Section 25526 of the Public Resources Code is amended to
read:
   25526.  (a) The  commission   secretary 
shall not approve as a site for a facility any location designated
by the California Coastal Commission pursuant to subdivision (b) of
Section 30413, unless the California Coastal Commission first finds
that  such   the  use is not inconsistent
with the primary uses of  such   the  land
and that there will be no substantial adverse environmental effects
and unless the approval of any public agency having ownership or
control of such land is obtained.
   (b) The  commission   secretary  shall
not approve as a site for a facility any location designated by the
San Francisco Bay Conservation and Development Commission pursuant to
subdivision (b) of Section 66645 of the Government Code unless the
San Francisco Bay Conservation and Development Commission first finds
that  such   the  use is not inconsistent
with the primary uses of  such   the  land
and that there will be no substantial adverse environmental effects
and unless the approval of any public agency having ownership or
control of  such   the  land is obtained.
  SEC. 197.  Section 25527 of the Public Resources Code is amended to
read:
   25527.  The following areas of the state shall not be approved as
a site for a facility, unless the  commission  
secretary  finds that  such   the  use
is not inconsistent with the primary uses of  such 
 the  lands and that there will be no substantial adverse
environmental effects and the approval of any public agency having
ownership or control of  such   the  lands
is obtained:
   (a) State, regional, county and city parks; wilderness, scenic or
natural reserves; areas for wildlife protection, recreation, historic
preservation; or natural preservation areas in existence on the
effective date of this division.
   (b) Estuaries in an essentially natural and undeveloped state.
   In considering applications for certification, the 
commission   secretary  shall give the greatest
consideration to the need for protecting areas of critical
environmental concern, including, but not limited to, unique and
irreplaceable scientific, scenic, and educational wildlife habitats;
unique historical, archaelogical, and cultural sites; lands of
hazardous concern; and areas under consideration by the state or the
United States for wilderness, or wildlife and game reserves.
  SEC. 198.  Section 25528 of the Public Resources Code is amended to
read:
   25528.  (a)  (1)    The  commission
  secretary  shall require, as a condition of
certification of any site and related facility, that the applicant
acquire, by grant or contract, the right to prohibit development of
privately owned lands in the area of the proposed site  which
  that  will result in population densities in
excess of the maximum population densities  which 
 that  the  commission   secretary
 determines, as to the factors considered by the commission
pursuant to  Section 25511,   subdivision (b) of
Section 25520,  are necessary to protect public health and
safety. 
    If 
    (2)     If  the applicant is
authorized to exercise the right of eminent domain under Article 7
(commencing with Section 610) of Chapter 3 of Part 1 of Division 1 of
the Public Utilities Code, the applicant may exercise the right of
eminent domain to acquire  such   those 
development rights  as   that  the 
commission   secretary  requires be acquired.
   (b) In the case of an application for a nuclear facility, the area
and population density necessary to insure the public's health and
safety designated by the  commission   secretary
 shall be that as determined from time to time by the United
States Nuclear Regulatory Commission, if the  commission
  secretary  finds that  such 
 the  determination is sufficiently definitive for valid
land use planning requirements.
   (c) The  commission  secretary  shall
waive the requirements of the acquisition of development rights by an
applicant to the extent that the  commission  
secretary  finds that existing governmental land use
restrictions are of a type necessary and sufficient to guarantee the
maintenance of population levels and land use development over the
lifetime of the facility which will insure the public health and
safety requirements set pursuant to this section.
   (d)  No   A  change in governmental land
use restrictions in  such  areas designated in
subdivision (c) of this section by any government agency shall 
not  be effective until approved by the  commission.
Such   secretary. The  approval shall certify that
the change in land use restrictions is not in conflict with
requirements provided for by this section.
   (e) It is not the intent of the Legislature by the enactment of
this section to take private property for public use without payment
of just compensation in violation of the United States Constitution
or the Constitution of California.
  SEC. 199.  Section 25529 of the Public Resources Code is amended to
read:
   25529.   When   If  a facility is
proposed to be located in the coastal zone or any other area with
recreational, scenic, or historic value, the  commission
  secretary  shall require, as a condition of
certification of any facility contained in the application, that an
area be established for public use, as determined by the 
commission.   secretary.  Lands within 
such   the area shall be acquired and maintained by
the applicant and shall be available for public access and use,
subject to restrictions required for security and public safety. The
applicant may dedicate  such   the  public
use zone to any local agency agreeing to operate or maintain it for
the benefit of the public. If no local agency agrees to operate or
maintain the public use zone for the benefit of the public, the
applicant may dedicate  such   the  zone to
the state. The commission   secretary 
shall also require that any facility to be located along the coast or
shoreline of any major body of water be set back from the shoreline
to permit reasonable public use and to protect scenic and aesthetic
values.
  SEC. 200.  Section 25530 of the Public Resources Code is amended to
read:
   25530.   (a)    The  commission
  secretary  may order a reconsideration of all or
part of a decision or order on  its own motion or on
 petition of any party. 
   Any such 
    (b)     A    petition 
for reconsideration  shall be filed within 30 days after
adoption by the  commission   secretary  of
a decision or order. The  commission  
secretary  shall not order a reconsideration  on its own
motion  more than 30 days after  it  
he or she  has adopted a  decison  
decision  or order. The  commission  
secretary  shall order or deny reconsideration on a petition
 therefor  within 30 days after the petition is
filed. 
    A 
    (c)     A  decision or order may be
reconsidered by the  commission   secretary
 on the basis of all pertinent portions of the record together
with  such   any  argument  as
  that  the  commission  
secretary  may permit, or the  commission  
secretary  may hold a further hearing, after notice to all
interested persons. A decision or order of the  commission
  secretary  on reconsideration shall have the same
force and effect as an original order or decision.
  SEC. 201.  Section 25531 of the Public Resources Code is amended to
read:
   25531.  (a) The decisions of the  commission 
 secretary  on  any   an 
application for certification of a site and related facility are
subject to judicial review by the Supreme Court of California.
   (b)  No new   New    or
additional evidence  may   shall not  be
introduced upon review and the cause shall be heard on the record of
the  commission  secretary  as certified to
by  it.   him or her.  The review shall
not be extended further than to determine whether the 
commission   secretary  has regularly pursued
 its   his or her  authority, including a
determination of whether the order or decision under review violates
any right of the petitioner under the United States Constitution or
the California Constitution. The findings and conclusions of the
commission on questions of fact are final and are not subject to
review, except as provided in this article. These questions of fact
shall include ultimate facts and the findings and conclusions of the
 commission. A report prepared by, or an approval of, the
commission pursuant to Section 25510, 25514, 25516, or 25516.5, or
subdivision (b) of Section 25520.5, shall not constitute a decision
of the commission subject to judicial review.  
secretary. 
   (c) Subject to the right of judicial review of decisions of the
 commission,   secretary,  no court in this
state has jurisdiction to hear or determine any case or controversy
concerning any matter which was, or could have been, determined in a
proceeding before the  commission   secretary
 , or to stop or delay the construction or operation of 
any thermal   a  powerplant except to enforce
compliance with the provisions of a decision of the 
commission   secretary  .
   (d) Notwithstanding Section 1250.370 of the Code of Civil
Procedure:
   (1) If the  commission   secretary 
requires, pursuant to subdivision (a) of Section 25528, as a
condition of certification of any site and related facility, that the
applicant acquire development rights, that requirement conclusively
establishes the matters referred to in Sections 1240.030 and 1240.220
of the Code of Civil Procedure in any eminent domain proceeding
brought by the applicant to acquire the development rights.
   (2) If the  commission   secretary 
certifies any site and related facility, that certification
conclusively establishes the matters referred to in Sections 1240.030
and 1240.220 of the Code of Civil Procedure in any eminent domain
proceeding brought to acquire the site and related facility.
   (e)  No   A  decision of the 
commission   secretary  pursuant to Section
 25516,  25522  ,  or 25523 shall
 not  be found to mandate a specific supply plan for any
utility as prohibited by Section 25323.
  SEC. 202.  Section 25534 of the Public Resources Code is amended to
read:
   25534.  (a) The  commission   secretary 
may, after one or more hearings, amend the conditions of, or revoke
the certification for, any facility for any of the following reasons:

   (1) Any material false statement set forth in the application,
presented in proceedings of the commission, or included in
supplemental documentation provided by the applicant.
   (2) Any significant failure to comply with the terms or conditions
of approval of the application, as specified by the 
commission   secretary  in its written decision.
   (3) A violation of this division or any regulation or order issued
by the commission under this division.
   (4) The owner of a project does not start construction of the
project within 12 months after the date all permits necessary for the
project become final and all administrative and judicial appeals
have been resolved provided the  California Consumer Power
and Conservation Financing Authority   commission 
notifies the  commission   secretary  that
it is willing and able to construct the project pursuant to
subdivision (g). The project owner may extend the 12-month period by
24 additional months pursuant to subdivision (f). This paragraph
applies only to projects with a project permit application deemed
complete by the commission after January 1, 2003.
   (b) The commission may also administratively impose a civil
penalty for a violation of paragraph (1) or (2) of subdivision (a).
Any civil penalty shall be imposed in accordance with Section 25534.1
and may not exceed seventy-five thousand dollars ($75,000) per
violation, except that the civil penalty may be increased by an
amount not to exceed one thousand five hundred dollars ($1,500) per
day for each day in which the violation occurs or persists, but the
total of the per day penalties may not exceed fifty thousand dollars
($50,000).
   (c) A project owner shall commence construction of a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) within 12 months after the project has been
certified by the  commission   secretary 
and after all accompanying project permits are final and
administrative and judicial appeals have been completed. The project
owner shall submit construction and commercial operation milestones
to the commission within 30 days after project certification.
Construction milestones shall require the start of construction
within the 12-month period established by this subdivision. The
commission shall approve milestones within 60 days after project
certification. If the 30-day deadline to submit construction
milestones to the commission is not met, the commission shall
establish milestones for the project.
   (d) The failure of the owner of a project subject to the
start-of-construction deadline provided by paragraph (4) of
subdivision (a) to meet construction or commercial operation
milestones, without a finding by the commission of good cause, shall
be cause for revocation of certification or the imposition of other
penalties by the commission.
   (e) A finding by the commission that there is good cause for
failure to meet the start-of-construction deadline required by
paragraph (4) of subdivision (a) or any subsequent milestones of
subdivision (c) shall be made if the commission determines that any
of the following criteria are met:
   (1) The change in any deadline or milestone does not change the
established deadline or milestone for the start of commercial
operation.
   (2) The deadline or milestone is changed due to circumstances
beyond the project owner's control, including, but not limited to,
administrative and legal appeals.
   (3) The deadline or milestone will be missed but the project owner
demonstrates a good faith effort to meet the project deadline or
milestone.
   (4) The deadline or milestone will be missed due to unforeseen
natural disasters or acts of God that prevent timely completion of
the project deadline or milestone.
   (5) The deadline or milestone will be missed for any other reason
determined reasonable by the commission.
   (f) The commission shall extend the start-of-construction deadline
required by paragraph (4) of subdivision (a) by an additional 24
months, if the owner reimburses the commission's actual cost of
licensing the project, less the amount paid pursuant to subdivision
(a) of Section 25806. For the purposes of this section, the
commission's actual cost of licensing the project shall be based on a
certified audit report filed by the commission staff within 180 days
of the commission's certification of the project. The certified
audit shall be filed and served on all parties to the proceeding, is
subject to public review and comment, and is subject to at least one
public hearing if requested by the project owner. Any reimbursement
received by the commission pursuant to this subdivision shall be
deposited in the General Fund.
   (g) If the owner of a project subject to the start-of-construction
deadline provided by paragraph (4) of subdivision (a) fails to
commence construction, without good cause, within 12 months after the
project has been certified by the commission and has not received an
extension pursuant to subdivision (f), the commission  shall
provide immediate notice to the California Consumer Power and
Conservation Financing Authority. The authority  shall
evaluate whether to pursue the project independently or in
conjunction with any other public or private entity, including the
original certificate holder. If the  authority demonstrates
to the  commission  that it  is willing and
able to construct the project either independently or in conjunction
with any other public or private entity, including the original
certificate holder, the  commission   secretary
 may revoke the original certification and issue a new
certification for the project to the  authority, 
 commission  unless the  authority's  
commission's  statutory authorization to finance or approve new
programs, enterprises, or projects has expired. If the 
authority   commission  declines to pursue the
project, the permit shall remain with the current project owner until
it expires pursuant to the regulations adopted by the commission.
   (h) If the  commission   secretary 
issues a new certification for a project subject to the
start-of-construction deadline provided by paragraph (4) of
subdivision (a) to the  authority,   commission,
 the  commission   secretary  shall
adopt new milestones for the project that allow the 
authority   commission  up to 24 months to start
construction of the project or to start to meet the applicable
deadlines or milestones. If the  authority  
commission  fails to begin construction in conformity with the
deadlines or milestones adopted by the  commission, 
 secretary,  without good cause, the certification may be
revoked.
   (i) (1) If the  commission   secretary 
issues a new certification for a project subject to the
start-of-construction deadline provided by paragraph (4) of
subdivision (a) to the  authority   commission
 and the  authority   commission 
pursues the project without participation of the original certificate
holder, the  authority   commission  shall
offer to reimburse the original certificate holder for the actual
costs the original certificate holder incurred in permitting the
project and in procuring assets associated with the license,
including, but not limited to, major equipment and the emission
offsets. In order to receive reimbursement, the original certificate
holder shall provide to the commission documentation of the actual
costs incurred in permitting the project. The commission shall
validate those costs. The certificate holder may refuse to accept the
offer of reimbursement for any asset associated with the license and
retain the asset. To the extent the certificate holder chooses to
accept the offer for an asset, it shall provide the 
authority   commission  with the asset.
   (2) If the  authority   commission 
reimburses the original certificate holder for the costs described in
paragraph (1), the original certificate holder shall provide the
 authority   commission  with all of the
assets for which the original certificate holder received
reimbursement.
   (j) This section does not prevent a certificate holder from
selling its license to construct and operate a project prior to its
revocation by the  commission   secretary 
. In the event of a sale to an entity that is not an affiliate of
the certificate holder, the commission shall adopt new deadlines or
milestones for the project that allow the new certificate holder up
to 12 months to start construction of the project or to start to meet
the applicable deadlines or milestones.
   (k) Paragraph (4) of subdivision (a) and subdivisions (c) to (j),
inclusive, do not apply to licenses issued for the modernization,
repowering, replacement, or refurbishment of existing facilities or
to a qualifying small power production facility or a qualifying
cogeneration facility within the meaning of Sections 201 and 210 of
Title II 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 (18 C.F.R. Parts 292.101 to 292.602,
inclusive), nor shall those provisions apply to any other generation
units installed, operated, and maintained at a customer site
exclusively to serve that facility's load. For the purposes of this
subdivision, "replacement" of an existing facility includes, but is
not limited to, a comparable project at a location different than the
facility being replaced, provided that the commission certifies that
the new project will result in the decommissioning of the existing
facility.
   () Paragraph (4) of subdivision (a) and subdivisions (c) to (j),
inclusive, do not apply to licenses issued to "local publicly owned
electric utilities," as defined in Section 224.3 of the Public
Utilities Code, whose governing bodies certify to the 
commission   secretary  that the project is needed
to meet the projected native load of the local publicly owned
utility.
   (m) To implement this section, the commission  and the
California Consumer Power and Conservation Financing Authority
 may  , in consultation with each other, 
adopt emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. For purposes of that chapter, including,
without limitation, Section 11349.6 of the Government Code, the
adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health and safety, or general welfare.
  SEC. 203.  Section 25534.1 of the Public Resources Code is amended
to read:
   25534.1.  (a) The  executive director of the commission
  department  may issue a complaint to any person
or entity on whom an administrative civil penalty may be imposed
pursuant to Section 25534. The complaint shall allege the act or
failure to act for which the civil penalty is proposed, the provision
of law authorizing civil liability, and the proposed civil penalty.
   (b) The complaint shall be served by personal notice or certified
mail, and shall inform the party so served that a hearing will be
conducted within 60 days after the party has been served. The hearing
shall be before the commission. The complainant may waive the right
to a hearing, in which case the commission shall not conduct a
hearing.
   (c) After any hearing, the commission may adopt, with or without
revision, the proposed decision and order of the executive 
director   department  .
   (d) Orders setting an administrative civil penalty shall become
effective and final upon issuance thereof, and any payment shall be
made within 30 days. Copies of these orders shall be served by
personal service or by registered mail upon the party served with the
complaint and upon other persons who appeared at the hearing and
requested a copy.
   (e) In determining the amount of the administrative civil penalty,
the commission shall take into consideration the nature,
circumstance, extent, and gravity of the violation or violations,
whether the violation is susceptible to removal or resolution, the
cost to the state in pursuing the enforcement action, and with
respect to the violator, the ability to pay, the effect on ability to
continue in business, any voluntary removal or resolution efforts
undertaken, any prior history of violations, the degree of
culpability, economic savings, if any, resulting from the violation,
and such other matters as justice may require.
  SEC. 204.  Section 25538 of the Public Resources Code is amended to
read:
   25538.  Upon receiving the commission's request for review under
subdivision (f) of Section 25519  and Section 25506 
, the local agency may request a fee from the commission to
reimburse the local agency for the actual and added costs of this
review by the local agency. The commission shall reimburse the local
agency for the added costs that shall be actually incurred by the
local agency in complying with the commission's request. The local
agency may also request reimbursement for permit fees that the local
agency would receive but for the operation of Section 25500 
, provided, however, that such   .   However,
these  fees may only be requested in accordance with actual
services performed by the local agency. The commission shall either
request a fee from the person proposing the project or devote a
special fund in its budget, for the reimbursement of  such
  these  costs incurred by local agencies.
  SEC. 205.  Section 25539 of the Public Resources Code is amended to
read:
   25539.  In reviewing  notices and  applications
for certification of modifications of existing facilities, the
commission shall adopt rules and regulations as necessary to 
insure   ensure  that relevant duties pursuant to
this division are carried out.
  SEC. 206.  Section 25540 of the Public Resources Code is amended to
read:
   25540.  If a person proposes to construct a geothermal powerplant
and related facility or facilities on a site, the  commission
  secretary  shall  not require three
alternative sites and related facilities to be proposed in the
notice. Except as otherwise provided, the commission shall issue its
findings on the notice, as specified in Section 25514, within nine
months from the date of filing of such notice, and shall 
issue its final decision on the application, as specified in Section
25523, within nine months from the date of the filing of the
application for certification, or at such later time as is mutually
agreed to by the commission and the applicant or person submitting
the notice or application.
                                                       SEC. 207.
Section 25540.1 of the Public Resources Code is amended to read:
   25540.1.  The commission shall determine, within 30 days after the
receipt of a notice or   an  application
for a geothermal powerplant, whether the  notice or 
application is complete. If the  notice or 
application is determined not to be complete, the commission's
determination shall specify, in writing, those parts of the 
notice or  application  which   that
 are incomplete and shall indicate the manner in which it can be
made complete. Within 30 days after receipt of the applicant's
filing with the commission the additional information requested by
the commission to make the  notice or  application
complete, the commission shall determine whether the subsequent
filing is sufficient to complete the  notice or 
application.  A notice or   An  application
shall be deemed filed for purposes of Section 25540 on the date the
commission determines the  notice or  application is
completed if the commission has adopted regulations specifying the
informational requirements for a complete  notice or
 application, but if the commission has not adopted
regulations, the  notice or  application shall be
deemed filed on the last date the commission receives any additional
data that completes the  notice or  application.
  SEC. 208.  Section 25540.2 of the Public Resources Code is amended
to read:
   25540.2.   Notwithstanding any other provision of law:
 
   (a) If an applicant proposes to construct a geothermal powerplant
at a site which, at the outset of the proceeding, the applicant can
reasonably demonstrate to be capable of providing geothermal
resources in commercial quantities, no notice of intention pursuant
to Section 25502 shall be required, and the commission shall issue
the final decision on the application, as specified in Section 25523,
within 12 months after acceptance of the application for
certification of a geothermal powerplant and related facilities, or
at such later time as is mutually agreed by the commission and the
applicant.  
   (b) Upon 
    Upon  receipt of an application for certification of a
geothermal powerplant and related facilities, the commission shall
transmit a copy of the application to every state and local agency
having jurisdiction over land use in the area involved.
  SEC. 209.  Section 25540.3 of the Public Resources Code is amended
to read:
   25540.3.  (a) An applicant for a geothermal powerplant may propose
a site to be approved that will accommodate a potential maximum
electric generating capacity in excess of the capacity being proposed
for initial construction. In addition to the information concerning
the initial powerplant and related facilities proposed for
construction required pursuant to Section 25520,  such
  the  application shall include all of the
following, to the extent known:
   (1) The number, type, and energy source of electric generating
units  which   that  the site is proposed
ultimately to accommodate and the maximum generating capacity for
each unit.
   (2) The projected installation schedule for each unit.
   (3) The impact of the site, when fully developed, on the
environment and public health and safety.
   (4) The amount and sources of cooling water needed at the fully
developed site.
   (5) The general location and design of auxiliary facilities
planned for each stage of development, including, but not limited to
pipelines, transmission lines, waste storage and disposal 
facilites   facilities  , switchyards, and cooling
ponds, lakes, or towers.
   (6)  Such other   Other  information
relating to the design, operation, and siting of the facility
 as   that  the commission may by
regulation require.
   (b)  (1)    If an application is filed pursuant
to subdivision (a)  which   that  proposes
a site to be approved  which   that  will
accommodate a potential maximum electric generating capacity in
excess of the capacity being proposed for initial construction, the
 commission   secretary  may, in 
its   his or her  decision pursuant to subdivision
(a)  of Section 25540.3  , either certify only the
initial facility or facilities proposed for initial construction or
may certify the initial facility or facilities and find the site
acceptable for additional generating capacity of the type tentatively
proposed. The maximum allowable amount and type of  such
  the  additional capacity shall be determined by
the commission. 
    If 
    (2)     If  the decision includes a
finding that a particular site is suitable to accommodate a
particular additional generating capacity, the site shall be
designated a potential multiple facility site. The 
commission   secretary  may, in determining the
acceptability of a potential multiple facility site, specify
conditions or criteria necessary to ensure that future additional
facilities will not exceed the limitations of the site.
  SEC. 210.  Section 25540.4 of the Public Resources Code is
repealed. 
   25540.4.  Notwithstanding any other provision of law:
   (a) The decision of the commission on an application for an
additional facility at a potential multiple facility site shall be
issued within three months after the acceptance of the application or
at such later time as is mutually agreed upon by the commission and
the applicant.
   (b) In reviewing an application for an additional facility at a
potential multiple facility site, the commission may, upon a showing
of good cause, undertake a reconsideration of its prior
determinations in the final report for the site pursuant to Section
25514 or its decision pursuant to Section 25523 based on current
conditions and other reasonable alternatives to the proposed
facility. Such reconsideration must be completed within seven months
after acceptance of such application for an additional facility.
   (c) The commission shall, pursuant to Section 21100.2, provide by
resolution or order for completing and certifying the environmental
impact report within the time limits established by subdivisions (a)
and (b). 
  SEC. 211.  Section 25540.6 of the Public Resources Code is
repealed. 
   25540.6.  (a) Notwithstanding any other provision of law, no
notice of intention is required, and the commission shall issue its
final decision on the application, as specified in Section 25523,
within 12 months after the filing of the application for
certification of the powerplant and related facility or facilities,
or at any later time as is mutually agreed by the commission and the
applicant, for any of the following:
   (1) A thermal powerplant which will employ cogeneration
technology, a thermal powerplant that will employ natural gas-fired
technology, or a solar thermal powerplant.
   (2) A modification of an existing facility.
   (3) A thermal powerplant which it is only technologically or
economically feasible to site at or near the energy source.
   (4) A thermal powerplant with a generating capacity of up to 100
megawatts.
   (5) A thermal powerplant designed to develop or demonstrate
technologies which have not previously been built or operated on a
commercial scale. Such a research, development, or commercial
demonstration project may include, but is not limited to, the use of
renewable or alternative fuels, improvements in energy conversion
efficiency, or the use of advanced pollution control systems. Such a
facility may not exceed 300 megawatts unless the commission, by
regulation, authorizes a greater capacity. Section 25524 does not
apply to such a powerplant and related facility or facilities.
   (b) Projects exempted from the notice of intention requirement
pursuant to paragraph (1), (4), or (5) of subdivision (a) shall
include, in the application for certification, a discussion of the
applicant's site selection criteria, any alternative sites that the
applicant considered for the project, and the reasons why the
applicant chose the proposed site. That discussion shall not be
required for cogeneration projects at existing industrial sites. The
commission may also accept an application for a noncogeneration
project at an existing industrial site without requiring a discussion
of site alternatives if the commission finds that the project has a
strong relationship to the existing industrial site and that it is
therefore reasonable not to analyze alternative sites for the
project. 
  SEC. 212.  Section 25541 of the Public Resources Code is amended to
read:
   25541.  The commission may exempt from this chapter 
thermal  powerplants with a generating capacity of up to 100
megawatts and modifications to existing generating facilities that
do not add capacity in excess of 100 megawatts, if the commission
finds that no substantial adverse impact on the environment or energy
resources will result from the construction or operation of the
proposed facility or from the modifications.
  SEC. 213.  Section 25541.1 of the Public Resources Code is amended
to read:
   25541.1.  It is the intent of the Legislature to encourage the
development of  thermal  powerplants using resource
recovery (waste-to-energy) technology. Previously enacted incentives
for the production of electrical energy from nonfossil fuels in
commercially scaled projects have failed to produce the desired
results. At the same time, the state faces a growing problem in the
environmentally safe disposal of its solid waste. The creation of
electricity by a  thermal  powerplant using resource
recovery technology addresses both problems by doing all of the
following:
   (a) Generating electricity from a nonfossil fuel of an ample,
growing supply.
   (b) Conserving landfill space, thus reducing waste disposal costs.

   (c) Avoiding the health hazards of burying garbage.
   Furthermore, development of resource recovery facilities creates
new construction jobs, as well as ongoing operating jobs, in the
communities in which they are located.
  SEC. 214.  Section 25541.5 of the Public Resources Code is amended
to read:
   25541.5.  (a) On or before January 1, 2001, the Secretary of the
 Natural  Resources Agency shall review the regulatory
program conducted pursuant to this chapter that was certified
pursuant to subdivision  (k)   (j)  of
Section 15251 of Title 14 of the California Code of Regulations, to
determine whether the regulatory program meets the criteria specified
in Section 21080.5. If the Secretary of the  Natural 
Resources Agency determines that the regulatory program meets those
criteria,  the secretary   he or she  shall
continue the certification of the regulatory program.
   (b) If the Secretary of the  Natural  Resources Agency
continues the certification of the regulatory program, the commission
shall amend the regulatory program from time to time, as necessary
to permit the  secretary   Secretary of the
Natural Resources Agency  to continue to certify the program.
   (c) This section does not invalidate the certification of the
regulatory program, as it existed on January 1, 2000, pending the
review required by subdivision (a).
  SEC. 215.  Section 25542 of the Public Resources Code is amended to
read:
   25542.  In the case of any site and related facility or facilities
for which the provisions of this division do not apply, the
exclusive power given to the  commission  
secretary  pursuant to Section 25500 to certify sites and
related facilities shall not be in effect.
  SEC. 216.  Section 25543 of the Public Resources Code is amended to
read:
   25543.  (a) It is the intent of the Legislature to improve the
process of siting and licensing new  thermal 
electric powerplants to ensure that these facilities can be sited in
a timely manner, while protecting environmental quality and public
participation in the siting process.
   (b) Notwithstanding Section 7550.5 of the Government Code,
the commission  The department  shall prepare
 a report   ,   and submit  to the
Governor and the Legislature on or before March 31, 2000,  a
report  that identifies administrative and statutory measures
that, preserving environmental protections and public participation,
would improve the commission's siting and licensing process for
 thermal  powerplants of 50 megawatts and larger.
The report shall include, but is not limited to, all of the
following:
   (1) An examination of potential process efficiencies associated
with required hearings, site visits, and documents.
   (2) A review of the impacts on both process efficiency and public
participation of restrictions on communications between applicants,
the public, and staff or decisionmakers.
   (3) An assessment of means for improving coordination with the
licensing activities of local jurisdictions and participation by
other state agencies.
   (4) An assessment of organizational structure issues including the
adequacy of the amounts and organization of current technical and
legal resources.
   (5) Recommendations for administrative and statutory measures to
improve the siting and licensing process.
   (c) The commission may immediately implement any administrative
recommendations. Regulations, as identified in paragraph (5), adopted
within 180 days of the effective date of this section may be adopted
as emergency regulations in accordance with Chapter 3.5 (commencing
with Section 11340) of the Government Code. For purposes of that
chapter, including Section 11349.6 of the Government Code, the
adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
  SEC. 217.  Section 25544 is added to the Public Resources Code, to
read:
   25544.  (a) The commission may, after one or more public hearings,
designate preferred areas for solar energy development based on
environmental sensitivity, the presence of infrastructure, and other
relevant considerations. Designation of an area under this section
shall be through a planning study, which will not have a legally
binding effect on later activities, but will serve as guidance to
developers and regulatory agencies in the selection of suitable sites
for the development of solar projects.
   (b) The commission shall give priority to, and expedite the review
of, applications for generating facilities that use a renewable
resource as their primary fuel or power source and transmission lines
proposed to access new or anticipated generating facilities.
  SEC. 218.  Section 25545 is added to the Public Resources Code, to
read:
   25545.  (a) Notwithstanding subdivision (a) of Section 25522, the
commission shall establish a process to issue the secretary's final
decision within nine months after the filing of an application for
any of the following:
   (1) An electric transmission line that provides access to electric
generation from renewable resources and would be constructed within
a transmission corridor zone designated under Section 25331.
   (2) A solar powerplant that is constructed within an area
designated as a preferred area for solar energy development in a
planning report under Section 25552.
   (3) A generating facility that uses a renewable resource as its
primary fuel or power source and would be constructed within an area
designated by the Renewable Energy Transmission Initiative as a
competitive renewable energy zone.
   (b) For purposes of this section, "filing" has the same meaning as
in Section 25522.
   (c) For an application filed in a process established under this
section, all local, regional, and state agencies that would have
jurisdiction over the proposed electric transmission line or
powerplant and related facilities, but for the exclusive jurisdiction
of the secretary, shall provide their final comments,
determinations, or opinions within 100 days after the filing of the
application. The regional water quality control boards, as
established pursuant to Chapter 4 (commencing with Section 13200) of
Division 7 of the Water Code, shall retain jurisdiction over any
applicable water quality standard that is incorporated into a final
certification issued pursuant to this chapter.
   (d) To implement this section, the commission may adopt emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 2 of Division 3 of Title 2 of the Government Code. For
purposes of that chapter, including without limitation, Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health, safety,
and general welfare.
  SEC. 219.  Section 25601 of the Public Resources Code is amended to
read:
   25601.  The  commission   department 
shall develop and coordinate a program of research and development in
energy supply, consumption, and conservation and the technology of
siting facilities and shall give priority to those forms of research
and development  which   that  are of
particular importance to the state, including, but not limited to,
all of the following:
   (a) Methods of energy conservation specified in Chapter 5
(commencing with Section 25400).
   (b) Increased energy use efficiencies of existing thermal electric
and hydroelectric powerplants and increased energy efficiencies in
designs of thermal electric and hydroelectric powerplants.
   (c) Expansion and accelerated development of alternative sources
of energy, including geothermal and solar resources, including, but
not limited to, participation in large-scale demonstrations of
alternative energy systems sited in California in cooperation with
federal agencies, regional compacts, other state governments, and
other participants. For purposes of this subdivision, "participation"
shall be defined as any of the following: (1) direct interest in a
project, (2) research and development to insure acceptable resolution
of environment and other impacts of alternative energy systems, (3)
research and development to improve siting and permitting methodology
for alternative energy systems, (4) experiments utilizing the
alternative energy systems, and (5) research and development of
appropriate methods to insure the widespread utilization of
economically useful alternative energy systems. Large-scale
demonstrations of alternative energy systems are exemplified by the
100KWe to 100MWe range demonstrations of solar, wind, and geothermal
systems contemplated by federal agencies, regional compacts, other
state governments, and other participants.
   (d) Improved methods of construction, design, and operation of
facilities to protect against seismic hazards.
   (e) Improved methods of energy-demand forecasting.
   (f) To accomplish the purposes of subdivision (c), an amount not
more than one-half of the total state funds appropriated for the
solar energy research and development program as proposed in the
budget  prepared pursuant to Section 25604  shall be
allocated for large-scale demonstration of alternative energy
systems.
  SEC. 220.  Section 25602 of the Public Resources Code is amended to
read:
   25602.  The  commission   department 
shall carry out technical assessment studies on all forms of energy
and energy-related problems, in order to influence federal research
and development priorities and to be informed on future energy
options and their impacts, including, in addition to those problems
specified in Section 25601, but not limited to, the following:
   (a) Advanced nuclear powerplant concepts, fusion, and fuel cells.
   (b) Total energy concepts.
   (c) New technology related to coastal and offshore siting of
facilities.
   (d) Expanded use of wastewater as cooling water and other advances
in powerplant cooling.
   (e) Improved methods of power transmission to permit interstate
and interregional transfer and exchange of bulk electric power.
   (f) Measures to reduce wasteful and inefficient uses of energy.
   (g) Shifts in transportation modes and changes in transportation
technology in relation to implications for energy consumption.
   (h) Methods of recycling, extraction, processing, fabricating,
handling, or disposing of materials, especially materials which
require large commitments of energy.
   (i) Expanded recycling of materials and its effect on energy
consumption.
   (j) Implications of government subsidies and taxation and
ratesetting policies.
   (k) Utilization of waste heat.
   (l) Use of hydrogen as an energy form.
   (m) Use of agricultural products, municipal wastes, and organic
refuse as an energy source. 
   Such 
    These  assessments may also be conducted in order to
determine which energy systems among competing technologies are most
compatible with standards established pursuant to this division.
  SEC. 221.  Section 25603 of the Public Resources Code is amended to
read:
   25603.  For research purposes, the  commission 
 department  shall, in cooperation with other state
agencies, participate in the design, construction, and operation of
energy-conserving buildings using data developed pursuant to Section
25401, in order to demonstrate the economic and technical feasibility
of  such   the  designs.
  SEC. 222.  Section 25603.5 of the Public Resources Code is amended
to read:
   25603.5.  (a) Pursuant to the duties of the  commission
  department  described in  paragraph (1) of
 subdivision (a) of Section 25401 and Section 25603, the
 commission   department  shall conduct a
statewide architectural design competition to select outstanding
designs for new single-family and multifamily residential units
 which   that  incorporate passive solar
and other energy-conserving design features.
   The purpose of the competition, to be known as the "State Solar
Medallion Passive Design Competition", is to demonstrate the
technical and economic feasibility of passive solar design for
residential construction, to speed its commercialization, and to
promote its use by developers in housing for moderate-income families
in the state. The competition shall be carried out with the
assistance and cooperation of the Office of the State Architect.
   (b) The competition shall be conducted for each of the state's six
regional climate zones. Each climate zone shall have the following
four categories of competition:
   (1) Single-family dwellings. The construction costs of these
dwellings shall not exceed thirty-five thousand dollars ($35,000) and
the market price, inclusive of land, construction, permits, fees,
overhead and profit shall not exceed fifty-five thousand dollars
($55,000)  ; provided that, if   . However, if
 the  commission   department 
determines that, as of the date construction is completed, the cost
of housing construction in this state has increased due to economic
inflation since January 1, 1979, the  commission 
 department  may increase these sums by the amount of
 such   that  inflation as indicated by the
construction cost index.
   (2) Single-family dwellings. The construction costs of these
dwellings shall not exceed fifty-five thousand dollars ($55,000) and
the market price, inclusive of land, construction, permits, fees,
overhead and profit shall not exceed eighty-five thousand dollars
($85,000)  ; provided that, if   . However, if
 the  commission   department 
determines that, as of the date construction is completed, the cost
of housing construction in this state has increased due to economic
inflation since January 1, 1979, the  commission 
 department  may increase these sums by the amount of such
inflation as indicated by the construction cost index.
   (3) Multifamily housing units with a market price or rental value
comparable to paragraph (1)  of this subdivision  .
   (4) Multifamily housing units with a market price or rental value
comparable to paragraph (2)  of this subdivision  .
   (c) In order to qualify for the competition, entrants shall be a
team composed of at least one member from each of the following
categories:
   (1) A building designer or architect.
   (2) A builder, developer, or contractor.
   (d) With submission of designs to the competition, all entrants
shall agree to comply with the following provisions, if awarded the
Solar Medallion or the first place prize in any category:
   (1) To build five models of the winning design for single-family
home categories if the builder, developer, or contractor member of
the winning team constructed more than 30 single-family detached
units during the one-year period ending on the date of the award, or
   (2) To build three models of the winning design for single-family
home categories if the builder, developer, or contractor member of
the winning team constructed 30 or fewer single-family detached units
during the one-year period ending on the date of the award, or
   (3) To build one model of the winning design for all multifamily
categories.
   (4) To commence construction within 18 months of the announcement
of awards.
   (5) To permit the  commission   department
 to install monitoring equipment for measuring energy
conservation performance of the structure on all models constructed
in compliance with paragraphs (1), (2), and (3)  of this
subdivision  .
   (6) To permit the  commission   department
 to document, exhibit, and publicize the constructed designs.
   All models of winning designs shall be built on the site or sites
described in the submission or on an alternate site or sites with
comparable features.
   Cash awards to authors of the winning designs may be made prior to
commencement of the agreed upon construction.
   All winning designs in the competition shall become the property
of the state and may be published and exhibited by the state after
completion of competition.
   (e) The judging panel for the competition shall consist of the
following five jurors:
   (1) One representative of the  Office  
Division  of the State Architect.
   (2) One representative of the  commission  
department  .
   (3) One certificated architect.
   (4) One representative of the state's lending institutions.
                                                        (5) One
developer, builder, or contractor.
   The nonagency members shall be appointed by the State Architect.
    (f)     (1)    In recognition
of the wide variation in construction costs statewide, and in order
to ensure fair and equitable competition in all areas of the state, a
cost index shall be used to determine different construction cost
and market price requirements for each category of competition in the
major metropolitan areas of the state. The construction cost and
market price figures specified in paragraphs (1) and (2) of
subdivision (b) shall be used as the upper limit values on which the
index shall be based. Construction cost and market price figures
reflecting the diversity in costs in different areas of the state
shall be determined in relation to upper limit values specified in
this section.
    (2)    The cost index shall be prepared by the
Office of the State Architect and shall be published in the
competition program.
    (g)    The evaluation shall take place in two
stages, with an initial technical review by the  commission
  department  staff. The staff shall submit to the
judging panel a rigorous technical assessment of the anticipated
energy conservation performance of all submissions. Final selection
shall be made by the judging panel.
    (h)    Designs submitted to the competition
shall be judged on the extent to which they satisfy the following
criteria:
   (1) Use of passive solar and other energy conserving design
features.
   (2) Amount of energy savings achieved by the design.
   (3) Adaptability of the design to widespread use. 
   (f) 
    (i)  The  commission   department
 shall be responsible for developing rules and procedures for
the conduct of the competition and for the judging, which rules shall
ensure anonymity of designs submitted prior to final awarding of
prizes, shall ensure impartiality of the judging panel, and shall
ensure uniform treatment of competitors.
    (j)    In administering the competition, the
 commission   department  shall accomplish
the following tasks:
   (1) Preparation of a competition program, including climatological
data for each of the six regional climate zones.
   (2) Distribution of competition information and ongoing publicity.

   (3) Development of rules and procedures for competitors and
judges.
   (4) Preparation of a summary document for the competition,
including a portfolio of winning designs and followup publicity.
   (5) Instrumentation of winning dwellings constructed in accordance
with requirements of this section  ;   , 
instrumentation for measurement of energy conservation performance of
the units  ,  and ongoing data collection  shall be
provided by the commission pursuant to Section 25607  .
   For purposes of administering the competition, the 
commission   department  shall contract with the
 Office   Division  of the State Architect
for materials and services that cannot be performed by its staff.

   (g) 
    (k)  Cash awards to authors of the winning designs shall
be made on the following basis:
    (l)    Using the criteria in subdivision (e) of
this section, the judging panel shall select, as follows:
   (1) The most outstanding design statewide selected from among the
first place winners in either of two single-family categories in any
of the six climate zones which shall receive the State Solar
Medallion Award and five thousand dollars ($5,000) in addition to the
cash award specified in paragraph (3) of this subdivision.
   (2) The most outstanding design statewide selected from among the
first place winners in either of the two multifamily categories in
any of the six climate zones which shall receive the State Solar
Medallion Award and five thousand dollars ($5,000) in addition to the
cash award specified in paragraph (3) of this subdivision.
   (3) The first place designs in each of the four competition
categories within each of the six climate zones, which shall each
receive a cash award of five thousand dollars ($5,000).
   (4) The second place designs in each of the four competition
categories within each of the six climate zones, which shall each
receive a cash award of two thousand dollars ($2,000).
  SEC. 223.  Section 25608 of the Public Resources Code is amended to
read:
   25608.  The  commission   department 
shall confer with officials of federal agencies, including the
National Aeronautics and Space Administration, the National Institute
of Standards and Technology, the Department of Energy, and the
Department of Housing and Urban Development, to coordinate the
adoption of regulations pursuant to Sections 25603 and 25605.
  SEC. 224.  Section 25610 of the Public Resources Code is amended to
read:
   25610.  For purposes of carrying out the provisions of this
chapter, the  commission   department  may
contract with any person for materials and services that cannot be
performed by its staff or other state agencies, and may apply for
federal grants or any other funding.
  SEC. 225.  Section 25616 of the Public Resources Code is amended to
read:
   25616.  (a) It is the intent of the Legislature to encourage local
agencies to expeditiously review permit applications to site energy
projects, and to encourage energy project developers to consider all
cost-effective and environmentally superior alternatives that achieve
their project objectives.
   (b) Subject to the availability of funds appropriated therefor,
the  commission   department  shall provide
technical assistance and grants-in-aid to assist local agencies to
do either or both of the following:
   (1) Site energy production or transmission projects  which
  that  are not otherwise subject to  the
provisions of  Chapter 6 (commencing with Section 25500).
   (2) Integrate into their planning processes, and incorporate into
their general plans, methods to achieve cost-effective energy
efficiency.
   (c) The  commission   department  shall
provide assistance at the request of local agencies  and
shall coordinate that assistance with the assistance provided by the
Department of Permit Assistance, created pursuant to Section 15399.50
of the Government Code  .
   (d) As used in this section, an energy project is any project
designed to produce, convert, or transmit energy as one of its
primary functions.
  SEC. 226.  Section 25617 of the Public Resources Code is amended to
read:
   25617.  (a) It is the intent of the Legislature to preserve
diversity of energy resources, including diversity of resources used
in electric generation facilities, industrial and commercial
applications, and transportation.
   (b) The  commission   department  shall,
within the limits of available funds, provide technical assistance
and support for the development of petroleum diesel fuels 
which   that  are as clean or cleaner than
alternative clean fuels and clean diesel engines. That technical
assistance and support may include the creation of research,
development, and demonstration programs.
  SEC. 227.  Section 25618 of the Public Resources Code is amended to
read:
   25618.  (a) The  commission   department
 shall facilitate development and commercialization of ultra
low- and zero-emission electric vehicles and advanced battery
technologies, as well as development of an infrastructure to support
maintenance and fueling of those vehicles in California. Facilitating
commercialization of ultra low- and zero-emission electric vehicles
in California shall include, but not be limited to, the following:
   (1) The  commission   department  may,
in cooperation with county, regional, and city governments, the state'
s public and private utilities, and the private business sector,
develop plans for accelerating the introduction and use of ultra low-
and zero-emission electric vehicles throughout California's air
quality nonattainment areas, and for accelerating the development and
implementation of the necessary infrastructure to support the
planned use of those vehicles in California. These plans shall be
consistent with, but not limited to, the criteria for similar efforts
contained in federal loan, grant, or matching fund projects.
   (2) In coordination with other state agencies, the 
commission   department  shall seek to maximize the
state's use of federal programs, loans, and matching funds available
to states for ultra low- and zero-emission electric vehicle
development and demonstration programs, and infrastructure
development projects.
   (b) Priority for implementing demonstration projects under this
section shall be directed toward those areas of the state currently
in a nonattainment status with federal and state air quality
regulations.
  SEC. 228.  Section 25620 of the Public Resources Code is amended to
read:
   25620.  The Legislature hereby finds and declares all of the
following:
   (a) It is in the best interests of the people of this state that
the quality of life of its citizens be improved by providing
environmentally sound, safe, reliable, and affordable energy services
and products.
   (b) To improve the quality of life of this state's citizens, it is
proper and appropriate for the state to undertake public interest
energy research, development, and demonstration projects that are not
adequately provided for by competitive and regulated energy markets.

   (c) Public interest energy research, demonstration, and
development projects should advance energy science or technologies of
value to California citizens and should be consistent with the
policies of this chapter.
   (d) It is in the best interest of the people of California for the
 department and the  commission to positively contribute to
the overall economic climate of the state within the roles and
responsibilities of the  department and the  commission as
defined by statute, regulation, and other official government
authority, including, but not limited to, providing economic benefits
to California-based entities.
  SEC. 229.  Section 25620.1 of the Public Resources Code is amended
to read:
   25620.1.  (a) The  commission   department
 shall develop, implement, and administer the Public Interest
Research, Development, and Demonstration Program that is hereby
created. The program shall include a full range of research,
development, and demonstration activities that, as determined by the
 commission,   department,  are not
adequately provided for by competitive and regulated markets. The
 commission   department  shall administer
the program consistent with the policies of this chapter.
   (b) The general goal of the program is to develop, and help bring
to market, energy technologies that provide increased environmental
benefits, greater system reliability, and lower system costs, and
that provide tangible benefits to electric utility customers through
the following investments:
   (1) Advanced transportation technologies that reduce air pollution
and greenhouse gas emissions beyond applicable standards, and that
benefit electricity and natural gas ratepayers.
   (2) Increased energy efficiency in buildings, appliances,
lighting, and other applications beyond applicable standards, and
that benefit electric utility customers.
   (3) Advanced electricity generation technologies that exceed
applicable standards to increase reductions in greenhouse gas
emissions from electricity generation, and that benefit electric
utility customers.
   (4) Advanced electricity technologies that reduce or eliminate
consumption of water or other finite resources, increase use of
renewable energy resources, or improve transmission or distribution
of electricity generated from renewable energy resources.
   (c) To achieve the goals established in subdivision (b), the
 commission   department  shall adopt a
portfolio approach for the program that does all of the following:
   (1) Effectively balances the risks, benefits, and time horizons
for various activities and investments that will provide tangible
energy or environmental benefits for California electricity
customers.
   (2) Emphasizes innovative energy supply and end use technologies,
focusing on their reliability, affordability, and environmental
attributes.
   (3) Includes projects that have the potential to enhance
transmission and distribution capabilities.
   (4) Includes projects that have the potential to enhance the
reliability, peaking power, and storage capabilities of renewable
energy.
   (5) Demonstrates a balance of benefits to all sectors that
contribute to the funding under Section 399.8 of the Public Utilities
Code.
   (6) Addresses key technical and scientific barriers.
   (7) Demonstrates a balance between short-term, mid-term, and
long-term potential.
   (8) Ensures that prior, current, and future research not be
unnecessarily duplicated.
   (9) Provides for the future market utilization of projects funded
through the program.
   (10) Ensures an open project selection process and encourages the
awarding of research funding for a diverse type of research as well
as a diverse award recipient base and equally considers research
proposals from the public and private sectors.
   (11) Coordinates with other related research programs.
   (d) The term "award," as used in this chapter, may include, but is
not limited to, contracts, grants, interagency agreements, loans,
and other financial agreements designed to fund public interest
research, demonstration, and development projects or programs.
  SEC. 230.  Section 25620.2 of the Public Resources Code is amended
to read:
   25620.2.  (a) To ensure the efficient implementation and
administration of the Public Interest Research, Development, and
Demonstration Program, the  commission  
department  shall do both of the following:
   (1) Develop procedures for the solicitation of award applications
for project or program funding, and to ensure efficient program
management.
   (2) Evaluate and select programs and projects, based on merit,
that will be funded under the program.
   (b) The  commission   department  shall
adopt regulations to implement the program, in accordance with the
following procedures:
   (1) Prepare a preliminary text of the proposed regulation and
provide a copy of the preliminary text to any person requesting a
copy.
   (2) Provide public notice of the proposed regulation to any person
who has requested notice of the regulations prepared by the 
commission   department  . The notice shall
contain all of the following:
   (A) A clear overview explaining the proposed regulation.
   (B) Instructions on how to obtain a copy of the proposed
regulations.
   (C) A statement that if a public hearing is not scheduled for the
purpose of reviewing a proposed regulation, any person may request,
not later than 15 days prior to the close of the written comment
period, a public hearing conducted in accordance with 
commission   department  procedures.
   (3) Accept written public comments for 30 calendar days after
providing the notice required in paragraph (2).
   (4) Certify that all written comments were read and considered by
the  commission   department  .
   (5) Place all written comments in a record that includes copies of
any written factual support used in developing the proposed
regulation, including written reports and copies of any transcripts
or minutes in connection with any public hearings on the adoption of
the regulation. The record shall be open to public inspection and
available to the courts.
   (6) Provide public notice of any substantial revision of the
proposed regulation at least 15 days prior to the expiration of the
deadline for public comments and comment period using the procedures
provided in paragraph (2).
   (7) Conduct public hearings, if a hearing is requested by an
interested party, that shall be conducted in accordance with 
commission   department  procedures.
   (8) Adopt any proposed regulation at a regularly scheduled and
noticed meeting of the  commission   department
 . The regulation shall become effective immediately unless
otherwise provided by the  commission  
department  .
   (9) Publish any adopted regulation in a manner that makes copies
of the regulation easily available to the public. Any adopted
regulation shall also be made available on the Internet. The 
commission   department  shall transmit a copy of
an adopted regulation to the Office of Administrative Law for
publication, or, if the  commission   department
 determines that printing the regulation is impractical, an
appropriate reference as to where a copy of the regulation may be
obtained.
   (10) Notwithstanding any other provision of law, this subdivision
provides an interim exception from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code for regulations required to implement Sections
25620.1 and  25620.2   this Section  that
are adopted under the procedures specified in this subdivision.
   (11) This subdivision shall become inoperative on January 1, 2012,
unless a later enacted statute deletes or extends that date.
However, after January 1, 2012, the  commission 
 department  is not required to repeat any procedural step
in adopting a regulation that has been completed before January 1,
2012, using the procedures specified in this subdivision.
  SEC. 231.  Section 25620.3 of the Public Resources Code is amended
to read:
   25620.3.  (a) The  commission  department
 may, consistent with the requirements of this chapter, provide
awards to any individual or entity for planning, implementation, and
administration of projects or programs selected pursuant to Section
25620.5.
   (b) The  commission   department  may
provide an award to a project or program that includes a group of
related projects, or to a party who aggregates projects that directly
benefit from the award.
   (c) The  commission   department  may
establish multiparty agreements. In a multiparty agreement, the
 commission   department  may be a
signatory to a common agreement among two or more parties. These
agreements include, but are not limited to, cofunding, leveraged
research, collaborations, and membership arrangements. If the
 commission   department  enters into these
agreements, it shall be a party to these agreements and may share in
the roles, responsibilities, risks, investments, and results.
   (d) The  commission   department  may
issue awards that include the ability to make advance payments to
prime contractors, to enable them to make advance payments to a
subcontractor that is a federal agency, national laboratory, or state
entity, on the condition that the subcontract is binding and
enforceable and includes specific performance milestones.
   (e) The  commission   department  may
issue awards that include the ability to assign tasks on a work
authorization basis.
   (f) Prior to making any award pursuant to this chapter for a
research, development, or demonstration program or project, the
 commission   department  shall identify
the expected costs and any qualitative or quantitative benefits of
the proposed program or project.
  SEC. 232.  Section 25620.4 of the Public Resources Code is amended
to read:
   25620.4.  (a) To the extent that intellectual property is
developed under this chapter, an equitable share of rights in
 the   that  intellectual property or in
the benefits derived  therefrom   from that
intellectual property  shall accrue to the State of California.
   (b) The  commission   department  may
determine what share, if any, of the intellectual property, or the
benefits derived  therefrom   from the
intellectual property  , shall accrue to the state. The
commission may negotiate sharing mechanisms for intellectual property
or benefits with award recipients.
  SEC. 233.  Section 25620.5 of the Public Resources Code is amended
to read:
   25620.5.  (a) The  commission   department
 may solicit applications for awards  ,  using
a sealed competitive bid, competitive negotiation process, 
commission-issued   department-issued 
intradepartmental master agreement, the methods for selection of
professional services firms set forth in Chapter 10 (commencing with
Section 4525) of Division 5 of Title 1 of the Government Code,
interagency agreement, single source, or sole source method. When
scoring teams are convened to review and score proposals, the scoring
teams may include persons not employed by the  commission
  department  , as long as employees of the state
constitute no less than 50 percent of the membership of the scoring
team. A person participating on a scoring team may not have any
conflict of interest with respect to the proposal before the scoring
team.
   (b) A sealed bid method may be used when goods and services to be
acquired can be described with sufficient specificity so that bids
can be evaluated against specifications and criteria set forth in the
solicitation for bids.
   (c) The  commission   department  may
use a competitive negotiation process in any of the following
circumstances:
   (1) Whenever the desired award is not for a fixed price.
   (2) Whenever project specifications cannot be drafted in
sufficient detail so as to be applicable to a sealed competitive bid.

   (3) Whenever there is a need to compare the different price,
quality, and structural factors of the bids submitted.
   (4) Whenever there is a need to afford bidders an opportunity to
revise their proposals.
   (5) Whenever oral or written discussions with bidders concerning
the technical and price aspects of their proposals will provide
better results to the state.
   (6) Whenever the price of the award is not the determining factor.

   (d) The  commission   department  may
establish interagency agreements.
   (e) The  commission  department  may
provide awards on a single source basis by choosing from among two or
more parties or by soliciting multiple applications from parties
capable of supplying or providing similar goods or services. The cost
to the state shall be reasonable and the  commission
  department  may only enter into a single source
agreement with a particular party if the  commission
  department  determines that it is in the state's
best interests.
   (f) The  commission   department  , in
accordance with subdivision (g) and in consultation with the
Department of General Services, may provide awards on a sole source
basis when the cost to the state is reasonable and the 
commission   department  makes any of the following
determinations:
   (1) The proposal was unsolicited and meets the evaluation criteria
of this chapter.
   (2) The expertise, service, or product is unique.
   (3) A competitive solicitation would frustrate obtaining necessary
information, goods, or services in a timely manner.
   (4) The award funds the next phase of a multiphased proposal and
the existing agreement is being satisfactorily performed.
   (5) When it is determined by the  commission 
 department  to be in the best interests of the state.
   (g) The  commission   department  may
not use a sole source basis for an award pursuant to subdivision (f),
unless both of the following conditions are met:
   (1) The  commission   department  , at
least 60 days prior to taking an action pursuant to subdivision (f),
notifies the Joint Legislative Budget Committee and the relevant
policy committees in both houses of the Legislature, in writing, of
its intent to take the proposed action.
   (2) The Joint Legislative Budget Committee either approves or does
not disapprove the proposed action within 60 days from the date of
notification required by paragraph (1).
   (h) The  commission   department  shall
give priority to California-based entities in making awards pursuant
to this chapter.
   (i) The provisions of this section are severable. If any provision
of this section or its application is held to be invalid, that
invalidity does not affect other provisions or applications that can
be given effect without the invalid provision or application.
   For purposes of this Section and Section 25620, "California-based
entity" means either of the following:
   A corporation or other business form organized for the transaction
of business that has its headquarters in California and manufactures
in California the product that qualifies for the incentive or award,
or a corporation or other business form organized for the
transaction of business that has an office for the transaction of
business in California and substantially manufactures in California
the product that qualifies for the incentive or award, or
substantially develops within California the research that qualifies
for the incentive or award, as determined by the agency issuing the
incentive or award.
  SEC. 234.  Section 25620.6 of the Public Resources Code is amended
to read:
   25620.6.  The  commission,   department,
 in consultation with the Department of General Services, may
purchase insurance coverage necessary to implement an award. Funding
for the purchase of insurance may be made from money in the Public
Interest Research, Development, and Demonstration Fund created
pursuant to Section 384 of the Public Utilities Code.
  SEC. 235.  Section 25620.7 of the Public Resources Code is amended
to read:
   25620.7.  (a) The  commission   department
 may contract for, or through interagency agreement obtain,
technical, scientific, or administrative services or expertise from
one or more entities, to support the program. Funding for this
purpose shall be made from money in the Public Interest Research,
Development, and Demonstration Fund.
   (b) The  commission   department  may
select the services or expertise described in subdivision (a),
pursuant to Section 25620.5. In the event that contracts or
interagency agreements have been made to multiple entities and their
subcontractors for similar purposes, the  commission
  department  may select from among those entities
the particular expertise needed for a specified type of work.
Selection of the particular expertise may be based solely on a review
of qualifications, including the specific expertise required,
availability of the expertise, or access to a resource of special
relevance to the work, including, but not limited to, a database,
model, technical facility, or a collaborative or institutional
affiliation that will expedite the quality and performance of the
work.
  SEC. 236.  Section 25620.8 of the Public Resources Code is amended
to read:
   25620.8.  The  commission   department 
shall prepare and submit to the Legislature an annual report, not
later than March 31 of each year, on awards made pursuant to this
chapter and progress toward achieving the goals set forth in Section
                                              25620.1. The report
shall include information on the names of award recipients, the
amount of awards, and the types of projects funded, an evaluation of
the success of funded projects, and recommendations for improvements
in the program. The report shall set forth the actual costs of
programs or projects funded by the commission,  
department,  the results achieved, and how the actual costs and
results compare to the expected costs and benefits. The 
commission   department  shall establish procedures
for protecting confidential or proprietary information and shall
consult with all interested parties in the preparation of the annual
report.
  SEC. 237.  Section 25620.11 of the Public Resources Code is amended
to read:
   25620.11.  (a) The  commission   department
 shall regularly convene an advisory board that shall make
recommendations to guide the  commission's  
department's  selection of programs and projects to be funded
under this chapter. The advisory board shall include as appropriate,
but not be limited to, representatives from the Public Utilities
Commission, consumer organizations, environmental organizations, and
electrical corporations subject to the funding requirements of
Section 381 of the Public Utilities Code.
   (b) Three members of the Senate, appointed by the Senate President
Pro Tempore, and three members of the Assembly, appointed by the
Speaker of the Assembly, may meet with the advisory board and
participate in its activities to the extent that  such
  this  participation is not incompatible with
their respective positions as Members of the Legislature.
  SEC. 238.  Section 25630 of the Public Resources Code is amended to
read:
   25630.  (a) The  commission   department
 shall establish a small business energy assistance low-interest
revolving loan program to fund the purchase of equipment for
alternative technology energy projects for California's small
businesses.
   (b) Loan repayments, interest, and royalties shall be deposited in
the Energy Technologies Research, Development, and Demonstration
Account. The interest rate shall be based on surveys of existing
financial markets and at rates not lower than the Pooled Money
Investment Account.
  SEC. 239.  Section 25678 of the Public Resources Code is amended to
read:
   25678.  The  commission   department 
shall establish a grant program  which   that
 provides a forty cent ($0.40) per gallon production incentive
for liquid fuels fermented in this state from biomass and
biomass-derived resources produced in this state. Eligible liquid
fuels include, but are not limited to, ethanol, methanol, and
vegetable oils. Eligible biomass resources include, but are not
limited to, agricultural products and byproducts, forestry products
and byproducts, and industrial wastes. The  commission
  department  shall adopt rules and regulations
necessary to implement the program. Prior to determining an applicant
eligible for participation in the production incentive program, the
 commission   department  shall find, among
other things, that the production techniques employed will lead to a
net increase in the amount of energy available for consumption.
  SEC. 240.  Section 25679 of the Public Resources Code is amended to
read:
   25679.  Applicants for a grant under this chapter shall submit an
application on a form prescribed by the  commission 
 department,  which is responsible for administration of
the program.
  SEC. 241.  Section 25696 of the Public Resources Code is amended to
read:
   25696.  The  commission   department 
may assist California-based energy technology and energy conservation
firms to export their technologies, products, and services to
international markets.
   The  commission   department  may do all
of the following:
   (a) Conduct a technical assistance program to help California
energy companies improve export opportunities and enhance foreign
buyers' awareness of and access to energy technologies and services
offered by California-based companies. Technical assistance
activities may include, but are not limited to, an energy technology
export information clearinghouse, a referral service,  a
 trade lead service consulting services for financing,
market evaluation, and legal counseling, and information seminars.
   (b) Perform research studies and solicit technical advice to
identify international market opportunities.
   (c) Assist California energy companies to evaluate project or
site-specific energy needs of international markets.
   (d) Assist California energy companies to identify and address
international trade barriers restricting energy technology exports,
including unfair trade practices and discriminatory trade laws.
   (e) Develop promotional materials in conjunction with California
energy companies to expand energy technology exports.
   (f) Establish technical exchange programs to increase foreign
buyers' awareness of suitable energy technology uses.
   (g) Prepare equipment performance information to enhance potential
export opportunities.
   (h) Coordinate activities with state, federal, and international
donor agencies to take advantage of trade promotion and financial
assistance efforts offered.
  SEC. 242.  Section 25696.5 of the Public Resources Code is amended
to read:
   25696.5.  (a) Every California-based energy technology and energy
conservation firm awarded direct financial assistance pursuant to
Section 25696 shall reimburse the  commission 
department  for that assistance, when both of the following
conditions have been met:
   (1) The assistance was substantial and essential for the
completion of a specific identifiable project.
   (2) The resulting project is producing revenues.
   (b) All moneys appropriated for purposes of this chapter and all
moneys received by the  commission   department
 as reimbursement under this section shall be deposited in the
Energy Resources Programs Account and shall be available, when
appropriated by the Legislature, for the purposes of this chapter.
  SEC. 243.  Section 25697 of the Public Resources Code is amended to
read:
   25697.  The  commission   department 
shall consult with the California State World Trade Commission with
respect to conducting overseas trade missions, trade shows, and trade
exhibits. Consultation may include interagency agreements,
cosponsorship, and memoranda of understanding for joint overseas
trade activities.
  SEC. 244.  Section 25700 of the Public Resources Code is amended to
read:
   25700.  The  commission   department 
shall, in accordance with  the provisions of  this
chapter, develop contingency plans to deal with possible shortages of
electrical energy or fuel supplies to protect public health, safety,
and welfare.
  SEC. 245.  Section 25701 of the Public Resources Code is amended to
read:
   25701.  (a) Within six months after the effective date of this
division, each electric utility, gas utility, and fuel wholesaler or
manufacturer in the state shall prepare and submit to the 
commission   department  a proposed emergency load
curtailment plan or emergency energy supply distribution plan setting
forth proposals for identifying priority loads or users in the event
of a sudden and serious shortage of fuels or interruption in the
generation of electricity.
   (b) The  commission   department  shall
encourage electric utilities to cooperate in joint preparation of an
emergency load curtailment plan or emergency energy distribution
plan. If  such a   this  cooperative plan
is developed between two or more electric utilities,  such
  the  utilities may submit  such 
 the  joint plans to the  commission  
department  in place of individual plans required by
subdivision (a) of this section.
   (c) The  commission   department  shall
collect from all relevant governmental agencies, including, but not
limited to, the Public Utilities Commission and the Office of
Emergency Services, any existing contingency plans for dealing with
sudden energy shortages or information related thereto.
  SEC. 246.  Section 25702 of the Public Resources Code is amended to
read:
   25702.  The  commission   department 
shall, after one or more public hearings, review the emergency load
curtailment program plans or emergency energy supply distribution
plans submitted pursuant to Section 25701, and,  within one
year after the effective date of this division   on or
before January 6, 1975  , the  commission  
department  shall approve and recommend to the Governor and the
Legislature plans for emergency load curtailment and energy supply
distribution in the event of a sudden energy shortage.  Such
  Those  plans shall be based upon the plans
presented by the electric utilities, gas utilities, and fuel
wholesalers or manufacturers, information provided by other
governmental agencies, independent analysis and study by the 
commission   department  and information provided
at the hearing or hearings.  Such   Those 
  plans shall provide for the provision of essential
services, the protection of public health, safety, and welfare, and
the maintenance of a sound basic state economy. Provision shall be
made in  such   those  plans to eliminate
wasteful, uneconomic, and unnecessary uses of energy in times of
shortages and to differentiate curtailment of energy consumption by
users on the basis of ability to accommodate such curtailments.
 Such   The  plans shall also specify the
authority of and recommend the appropriate actions of state and local
governmental agencies in dealing with energy shortages.
  SEC. 247.  Section 25703 of the Public Resources Code is amended to
read:
   25703.  Within four months after the date of certification of
 any   a  new facility, the 
commission   department  shall review and revise
the recommended plans based on additional new capacity attributed to
 any such   that  facility. The 
commission   department  shall, after one or more
public hearings, review the plans at least every five years from the
approval of the initial plan as specified in Section 25702.
  SEC. 248.  Section 25704 of the Public Resources Code is amended to
read:
   25704.  The  commission   department 
shall carry out studies to determine if potential serious shortages
of electrical, natural gas, or other sources of energy are likely to
occur and shall make recommendations to the Governor and the
Legislature concerning administrative and legislative actions
required to avert possible energy supply emergencies or serious fuel
shortages, including, but not limited to, energy conservation and
energy development measures, to grant authority to specific
governmental agencies or officers to take actions in the event of a
sudden energy shortage, and to clarify and coordinate existing
responsibilities for energy emergency actions.
  SEC. 249.  Section 25705 of the Public Resources Code is amended to
read:
   25705.   (a)    If the commission
  department  determines that all reasonable
conservation, allocation, and service restriction measures may not
alleviate an energy supply emergency, and upon a declaration by the
Governor or by an act of the Legislature that a threat to public
health, safety, and welfare exists and requires immediate action, the
 commission   department  shall authorize
the construction and use of generating facilities under  such
 terms and conditions as specified by the 
commission   department  to protect the public
interest. 
   Within 
    (b)     Within  60 days after the
authorization of construction and use of  such 
the  generating facilities, the  commission 
 department  shall issue a report detailing the full nature,
extent, and estimated duration of the emergency situation and making
recommendations to the Governor and the Legislature for further
energy conservation and energy supply measures to alleviate the
emergency situation as alternatives to use of  such 
 the  generating facilities.
  SEC. 250.  Section 25720 of the Public Resources Code is amended to
read:
   25720.  (a) By January 31, 2002, the  commission 
 department  shall examine the feasibility, including
possible costs and benefits to consumers and impacts on fuel prices
for the general public, of operating a strategic fuel reserve to
insulate California consumers and businesses from substantial
short-term price increases arising from refinery outages and other
similar supply interruptions. In evaluating the potential operation
of a strategic fuel reserve, the  commission  
department  shall consult with other state agencies, including,
but not limited to, the State Air Resources Board.
   (b) The  commission   department  shall
examine and recommend an appropriate level of reserves of fuel, but
in no event may the reserve be less than the amount of refined fuel
that the  commission  department  estimates
could be produced by the largest California refiner over a two week
period. In making this examination and recommendation, the 
commission   department  shall take into account
all of the following:
   (1) Inventories of California-quality fuels or fuel components
reasonably available to the California market.
   (2) Current and historic levels of inventory of fuels.
   (3) The availability and cost of storage of fuels.
   (4) The potential for future supply interruptions, price spikes,
and the costs thereof to California consumers and businesses.
   (c) The  commission   department  shall
evaluate a mechanism to release fuel from the reserve that permits
any customer to contract at any time for the delivery of fuel from
the reserve in exchange for an equal amount of fuel that meets
California specifications and is produced from a source outside of
California that the customer agrees to deliver back to the reserve
within a time period to be established by the  commission,
  department,  but not longer than six weeks.
   (d) The  commission   department  shall
evaluate reserve storage space from existing facilities.
   (e) The  commission   department  shall
evaluate a reserve operated by an independent operator that
specializes in purchasing and storing fuel, and is selected through
competitive bidding.
   (f) (1) Not later than January 31, 2002, the  commission
  department  and the State Air Resources Board, in
consultation with the other state and local agencies the 
commission   department  deems necessary, shall
develop and adopt recommendations for the Governor and Legislature on
a California Strategy to Reduce Petroleum Dependence.
   (2) The strategy shall include a base case forecast by the
 commission   department  of gasoline,
diesel, and petroleum consumption in years 2010 and 2020 based on
current best estimates of economic and population growth, petroleum
base fuel supply and availability, vehicle efficiency, and
utilization of alternative fuels and advanced transportation
technologies.
   (3) The strategy shall include recommended statewide goals for
reductions in the rate of growth of gasoline and diesel fuel
consumption and increased transportation energy efficiency and
utilization of nonpetroleum based fuels and advanced transportation
technologies, including alternative fueled vehicles, hybrid vehicles,
and high fuel efficiency vehicles.
   (g) The studies required by this section shall be conducted in
conjunction with any other studies required by acts enacted during
the 2000 portion of the 1999-2000 Regular Session dealing with
gasoline prices.
  SEC. 251.  Section 25721 of the Public Resources Code is amended to
read:
   25721.  The  commission   department 
shall report its findings and recommendations  for purposes of
Section 25720  to the Governor, the Legislature, and the
Attorney General by January 31, 2002. If the  commission
  department  finds that it would be feasible to
operate a strategic gas reserve to insulate California consumers and
businesses from substantial, short-term price increases arising from
refinery outages or other similar supply interruptions, the 
commission   department  shall request specific
statutory authority and funding for establishment of a reserve.
  SEC. 252.  Section 25722 of the Public Resources Code is amended to
read:
   25722.  (a) On or before January 31, 2003, the 
commission,   department,  the Department of
General Services, and the State Air Resources Board, in consultation
with any other state agency that  the commission, 
the department  , the Department of General Services  , and
the state board deem necessary, shall develop and adopt
fuel-efficiency specifications governing the purchase by the state of
motor vehicles and replacement tires that, on an annual basis, will
reduce petroleum consumption of the state vehicle fleet to the
maximum extent practicable and  cost-effective 
cost effective  .
   (b) In developing the specifications,  the commission and
 the department  and the Department of General Services
 shall jointly conduct a study to examine state vehicle
purchasing patterns, including the purchase of after market tires,
and to analyze the costs and benefits of reducing the energy
consumption of the state vehicle fleet by no less than 10 percent on
or before January 1, 2005.
   (c) The study shall include an analysis of all of the following
topics:
   (1) Use of alternative fuels.
   (2) Use of fuel-efficient vehicles.
   (3) Costs and benefits of decreasing the size of the state vehicle
fleet.
   (4) Reduction in vehicle trips and increase in use of alternative
means of transportation.
   (5) Improved vehicle maintenance.
   (6) Costs and benefits of using fuel-efficient tires relative to
using retreaded tires, as described in the Retreaded Tire Program
 (Chapter   ,   Chapter  7
(commencing with Section 42400) of Part 3 of Division 30  of
the Public Resources Code)  .
   (7) The costs and benefits of purchasing high fuel efficiency
gasoline vehicles, including hybrid electric vehicles, instead of
flexible fuel vehicles.
   (d) On or before January 31, 2003, and annually thereafter, the
commission, the Department of General Services, and the State Air
Resources Board, in consultation with any other state agency that
 the commission,  the department, the Department
of General Services,  and the state board deem necessary, shall
develop and adopt air pollution emission specifications governing
the purchase by the state of passenger cars and light-duty trucks
that meet or exceed California's Ultra-Low Emission Vehicle (ULEV)
standards for exhaust emissions (13 Cal. Code Regs. 1960.1).
   (e) If the study described in subdivision (b) determines that
lower cost measures exist that deliver petroleum reductions
equivalent to applicable federal requirements governing the state
purchase of passenger cars and light-duty trucks, the state shall
pursue a waiver from those federal requirements.
  SEC. 253.  Section 25722.5 of the Public Resources Code is amended
to read:
   25722.5.  (a) In order to achieve the policy objectives set forth
in Sections 25000.5 and 25722, the Department of General Services, in
consultation with the  commission   department
 and the State Air Resources Board, shall develop and adopt
specifications and standards for all passenger cars and light-duty
trucks that are purchased or leased on behalf of, or by, state
offices, agencies, and departments. An authorized emergency vehicle,
as defined in Section 165 of the Vehicle Code, that is equipped with
emergency lamps or lights described in Section 25252 of the Vehicle
Code is exempt from the requirements of this section. The
specifications and standards shall include the following:
   (1) Minimum air pollution emission specifications that meet or
exceed California's Ultra-Low Emission Vehicle II (ULEV II) standards
for exhaust emissions (13 Cal. Code Regs. 1961). These
specifications shall apply on January 1, 2006, for passenger cars and
on January 1, 2010, for light-duty trucks.
   (2) Notwithstanding any other provision of law, the utilization of
procurement policies that enable the Department of General Services
to do all of the following:
   (A) Evaluate and score emissions, fuel costs, and fuel economy in
addition to capital cost to enable the Department of General Services
to choose the vehicle with the lowest life-cycle cost when awarding
a state vehicle procurement contract.
   (B) Maximize the purchase or lease of hybrid or "Best in Class"
vehicles that are substantially more fuel efficient than the class
average.
   (C) Maximize the purchase or lease of available vehicles that meet
or exceed California's Super Ultra-Low Emission Vehicle (SULEV)
passenger car standards for exhaust emissions.
   (D) Maximize the purchase or lease of alternative fuel vehicles.
   (3) In order to discourage the unnecessary purchase or leasing of
a sport utility vehicle and a four-wheel drive truck, a requirement
that each state office, agency, or department seeking to purchase or
lease that vehicle, demonstrate to the satisfaction of the Director
of General Services or to the entity that purchases or leases
vehicles for that office, agency, or department, that the vehicle is
required to perform an essential function of the office, agency, or
department. If it is so demonstrated, priority consideration shall be
given to the purchase or lease of an alternative fuel or hybrid
sports utility vehicle or four-wheel drive vehicle.
   (b) The specifications and standards developed and adopted
pursuant to subdivision (a) do not apply upon the development and
implementation of the method, criteria, and procedure described in
Section 25722.6.
   (c) Each state office, agency, and department shall review its
vehicle fleet and, upon finding that it is fiscally prudent, cost
effective, or otherwise in the public interest to do so, shall
dispose of nonessential sport utility vehicles and four-wheel drive
trucks in its fleet and replace these vehicles with more
fuel-efficient passenger cars and trucks.
   (d) To the maximum extent practicable, each state office, agency,
and department that has bifuel natural gas, bifuel propane, and flex
fuel vehicles in its vehicle fleet shall use the respective
alternative fuel in those vehicles.
   (e) The Director of General Services shall compile annually and
maintain information on the nature of vehicles that are owned or
leased by the state, including, but not limited to, all of the
following:
   (1) The number of passenger-type motor vehicles purchased or
leased during the year, and the number owned or leased as of December
31 of each year.
   (2) The number of sport utility vehicles and four-wheel drive
trucks purchased or leased by the state during the year, and the
number owned or leased as of December 31 of each year.
   (3) The number of alternatively fueled vehicles and hybrid
vehicles purchased or leased by the state during the year, and the
total number owned or leased as of December 31 of each year and their
location.
   (4) The locations of the alternative fuel pumps available for
those vehicles.
   (5) The justification provided for all sport utility vehicles and
four-wheel drive trucks purchased or leased by the state and the
specific office, department, or agency responsible for the purchase
or lease.
   (6) The number of sport utility vehicles and four-wheel drive
trucks purchased or leased by the state during the year, and the
number owned or leased as of December 31 of each year that are
alternative fuel or hybrid vehicles.
   (7) The number of light-duty trucks disposed of under subdivision
(c).
   (8) The total dollars spent by the state on passenger-type vehicle
purchases and leases, categorized by sport utility vehicle and
nonsport utility vehicle, and within each of those categories, by
alternative fuel, hybrid and other.
   (9) The total annual consumption of gasoline and diesel fuel used
by the state fleet.
   (10) The total annual consumption of alternative fuels.
   (11) On December 31, 2009, and annually thereafter, the Director
of General Services shall also compile the total annual vehicle miles
traveled by vehicles in the state fleet.
   (f) Each state office, agency, and department shall cooperate with
the Department of General Services' data requests in order that the
department may compile and maintain the information required in
subdivision (e).
   (g) As soon as practicable, but no later than 12 months after
receiving the data, the information compiled and maintained under
subdivision (e) and a list of those state offices, agencies, and
departments that are not in compliance with subdivision (f) shall be
made available to the public on the Department of General Services'
Internet Web site.
   (h) Beginning July 1, 2009, and every three years thereafter, the
Director of General Services shall report to the Legislature and the
Governor the information compiled and maintained pursuant to
subdivision (e).
   (i) Pursuant to Article IX of the California Constitution, this
section shall not apply to the University of California except to the
extent that the Regents of the University of California, by
appropriate resolution, make this section applicable.
  SEC. 254.  Section 25723 of the Public Resources Code is amended to
read:
   25723.  On or before January 31, 2003, the  commission,
  department,  in consultation with any other state
agency that the  commission   department 
deems necessary, shall develop and adopt recommendations for
consideration by the Governor and the Legislature of a California
State Fuel-Efficient Tire Program. The  commission 
 department  shall make recommendations on all of the
following items:
   (a) Establishing a test procedure for measuring tire fuel
efficiency.
   (b) Development of a  data base   database
 of fuel efficiency of existing tires in order to establish an
accurate baseline of tire efficiency.
   (c) A rating system for tires that provides consumers with
information on the fuel efficiency of individual tire models.
   (d) A consumer-friendly system to disseminate tire fuel-efficiency
information as broadly as possible. The  commission
  department  shall consider labeling, Web site
listing, printed fuel economy guide booklets, and mandatory
requirements for tire retailers to provide fuel-efficiency
information.
   (e) A study to determine the safety implications, if any, of
different policies to promote fuel efficient replacement tires in the
consumer market.
   (f) A mandatory fuel-efficiency standard for all after market
tires sold in California.
   (g) Consumer incentive programs that would offer a rebate to
purchasers of replacement tires that are more fuel efficient than the
average replacement tire.
                              SEC. 255.  Section 25741 of the Public
Resources Code is amended to read:
   25741.  As used in this chapter, the following terms have the
following meaning:
   (a) "Delivered" and "delivery" mean the electricity output of an
in-state renewable electricity generation facility that is used to
serve end-use retail customers located within the state. Subject to
verification by the accounting system established by the 
commission   department  pursuant to subdivision
(b) of Section 399.13 of the Public Utilities Code, electricity shall
be deemed delivered if it is either generated at a location within
the state, or is scheduled for consumption by California end-use
retail customers. Subject to criteria adopted by the 
commission   department  , electricity generated by
an eligible renewable energy resource may be considered "delivered"
regardless of whether the electricity is generated at a different
time from consumption by a California end-use customer.
   (b) "In-state renewable electricity generation facility" means a
facility that meets all of the following criteria:
   (1) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
   (2) The facility satisfies one of the following requirements:
   (A) The facility is located in the state or near the border of the
state with the first point of connection to the transmission network
within this state and electricity produced by the facility is
delivered to an in-state location.
   (B) The facility has its first point of interconnection to the
transmission network outside the state and satisfies all of the
following requirements:
   (i) It is connected to the transmission network within the Western
Electricity Coordinating Council (WECC) service territory.
   (ii) It commences initial commercial operation after January 1,
2005.
   (iii) Electricity produced by the facility is delivered to an
in-state location.
   (iv) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
   (v) If the facility is outside of the United States, it is
developed and operated in a manner that is as protective of the
environment as a similar facility located in the state.
   (vi) It participates in the accounting system to verify compliance
with the renewables portfolio standard by retail sellers, once
established by the  Energy Commission  
department  pursuant to subdivision (b) of Section 399.13 of the
Public Utilities Code.
   (C) The facility meets the requirements of clauses (i), (iii),
(iv), (v), and (vi) in subparagraph (B), but does not meet the
requirements of clause (ii) because it commences initial operation
prior to January 1, 2005, if the facility satisfies either of the
following requirements:
   (i) The electricity is from incremental generation resulting from
expansion or repowering of the facility.
   (ii) The facility has been part of the existing baseline of
eligible renewable energy resources of a retail seller established
pursuant to paragraph (2) of subdivision (b) of Section 399.15 of the
Public Utilities Code or has been part of the existing baseline of
eligible renewable energy resources of a local publicly owned
electric utility established pursuant to Section 387 of the Public
Utilities Code.
   (3) For the purposes of this subdivision, "solid waste conversion"
means a technology that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:

   (A) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
   (B) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.
   (C) The technology produces no discharges to surface or
groundwaters of the state.
   (D) The technology produces no hazardous wastes.
   (E) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
   (F) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
   (G) The technology meets any other conditions established by the
 commission   department .
   (H) The facility certifies that any local agency sending solid
waste to the facility diverted at least 30 percent of all solid waste
it collects through solid waste reduction, recycling, and
composting. For purposes of this paragraph, "local agency" means any
city, county, or special district, or subdivision thereof, which is
authorized to provide solid waste handling services.
   (c) "Procurement entity" means any person or corporation that
enters into an agreement with a retail seller to procure eligible
renewable energy resources pursuant to subdivision (f) of Section
399.14 of the Public Utilities Code.
   (d) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge authorized to be collected
and to be transferred to the Renewable Resource Trust Fund pursuant
to the Reliable Electric Service Investments Act (Article 15
(commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code).
   (e) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
 commission   former State Energy Resources
Conservation and Development Commission  .
   (f) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code.
  SEC. 256.  Section 25742 of the Public Resources Code is amended to
read:
   25742.  (a) Twenty percent of the funds collected pursuant to the
renewable energy public goods charge shall be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2007-2011 investment cycle. Eligibility for production
incentives under this section shall be limited to those technologies
found eligible for funds by the  commission  
department  pursuant to paragraphs (3), (4), and (6) of
subdivision (e) of Section 25740.5.
   (b)  Any funds   Funds  used to support
in-state renewable electricity generation facilities pursuant to this
section shall be expended in accordance with  the provisions
of  this chapter.
   (c) Facilities that are eligible to receive funding pursuant to
this section shall be registered in accordance with criteria
developed by the  commission   department 
and those facilities shall not receive payments for any electricity
produced that has any of the following characteristics:
   (1) Is sold at monthly average rates equal to, or greater than,
the applicable target price, as determined by the  commission
  department  .
   (2) Is used onsite.
   (d) (1) Existing facilities generating electricity from biomass
energy shall be eligible for funding and otherwise considered an
in-state renewable electricity generation facility only if they
report to the  commission  department  the
types and quantities of biomass fuels used.
   (2) The  commission   department  shall
report the types and quantities of biomass fuels used by each
facility to the Legislature in the reports prepared pursuant to
Section 25748.
   (e)  Each   An  existing facility
seeking an award pursuant to this section shall be evaluated by the
 commission   department  to determine the
amount of the funds being sought, the cumulative amount of funds the
facility has received previously from the  commission
  department  and other state sources, the value of
any past and current federal or state tax credits, the facility's
contract price for energy and capacity, the prices received by
similar facilities, the market value of the facility, and the
likelihood that the award will make the facility competitive and
self-sustaining within the 2007-2011 investment cycle. The 
commission   department  shall use this evaluation
to determine the value of an award to the public relative to other
renewable energy investment alternatives. The  commission
  department  shall compile its findings and report
them to the Legislature in the reports prepared pursuant to Section
25748.
  SEC. 257.  Section 25743 of the Public Resources Code is amended to
read:
   25743.  (a) The  commission   department
 shall terminate all production incentives awarded from the New
Renewable Resources Account prior to January 1, 2002, unless the
project began generating electricity by January 1, 2007.
   (b) (1) The  commission   department 
shall, by March 1, 2008, transfer to electrical corporations serving
customers subject to the renewable energy public goods charge the
remaining unencumbered funds in the New Renewable Resources Account.
   (2) The Public Utilities Commission shall ensure that each
electrical corporation allocates funds received from the 
commission   department  pursuant to paragraph (1)
in a manner that maximizes the economic benefit to all customer
classes that funded the New Renewable Resources Account.
  SEC. 258.  Section 25744 of the Public Resources Code is amended to
read:
   25744.  (a) Seventy-nine percent of the money collected pursuant
to the renewable energy public goods charge shall be used for a
multiyear, consumer-based program to foster the development of
emerging renewable technologies in distributed generation
applications.
   (b)  Any funds   Funds  used for
emerging technologies pursuant to this section shall be expended in
accordance with this chapter, subject to all of the following
requirements:
   (1) Funding for emerging technologies shall be provided through a
competitive, market-based process that is in place for a period of
not less than five years, and is structured to allow eligible
emerging technology manufacturers and suppliers to anticipate and
plan for increased sale and installation volumes over the life of the
program.
   (2) The program shall provide monetary rebates, buydowns, or
equivalent incentives, subject to paragraph (3), to purchasers,
lessees, lessors, or sellers of eligible electricity generating
systems. Incentives shall benefit the end-use consumer of renewable
generation by directly and exclusively reducing the purchase or lease
cost of the eligible system, or the cost of electricity produced by
the eligible system. Incentives shall be issued on the basis of the
rated electrical generating capacity of the system measured in watts,
or the amount of electricity production of the system, measured in
kilowatthours. Incentives shall be limited to a maximum percentage of
the system price, as determined by the  commission 
 department  . The  commission  
department  may establish different incentive levels for systems
based on technology type and system size, and may provide different
incentive levels for systems used in conjunction with
energy-efficiency measures.
   (3) Eligible distributed emerging technologies are fuel cell
technologies that utilize renewable fuels, including fuel cell
technologies with an emission profile equivalent or better than the
State Air Resources Board 2007 standard, and that serve as backup
generation for emergency, safety, or telecommunications systems.
Eligible renewable fuels may include wind turbines of not more than
50 kilowatts rated electrical generating capacity per customer site
and other distributed renewable emerging technologies that meet the
emerging technology eligibility criteria established by the 
commission   department  and are not eligible for
rebates, buydowns, or similar incentives from any other commission or
Public Utilities Commission program. Eligible electricity generating
systems are intended primarily to offset part or all of the consumer'
s own electricity demand, including systems that are used as backup
power for emergency, safety, or telecommunications, and shall not be
owned by local publicly owned electric utilities, nor be located at a
customer site that is not receiving distribution service from an
electrical corporation that is subject to the renewable energy public
goods charge and contributing funds to support programs under this
chapter. All eligible electricity generating system components shall
be new and unused, shall not have been previously placed in service
in any other location or for any other application, and shall have a
warranty of not less than five years to protect against defects and
undue degradation of electrical generation output. Systems and their
fuel resources shall be located on the same premises of the end-use
consumer where the consumer's own electricity demand is located, and
all eligible electricity generating systems shall be connected to the
utility grid, unless the system purpose is for backup generation
used in emergency, safety, or telecommunications in California. The
 commission   department  may require
eligible electricity generating systems to have meters in place to
monitor and measure a system's performance and generation. Only
systems that will be operated in compliance with applicable law and
the rules of the Public Utilities Commission shall be eligible for
funding.
   (4) The  commission   department  shall
limit the amount of funds available for a system or project of
multiple systems and reduce the level of funding for a system or
project of multiple systems that has received, or may be eligible to
receive, any government or utility funds, incentives, or credit.
   (5) In awarding funding, the  commission  
department  may provide preference to systems that provide
tangible demonstrable benefits to communities with a plurality of
minority or low-income populations.
   (6) In awarding funding, the  commission  
department  shall develop and implement eligibility criteria and
a system that provides preference to systems based upon system
performance, taking into account factors, including shading,
insulation levels, and installation orientation.
   (7) At least once annually, the  commission  
department  shall publish and make available to the public the
balance of funds available for emerging renewable energy resources
for rebates, buydowns, and other incentives for the purchase of these
resources.
   (c) Notwithstanding Section 27540.5, the  commission
  department  may expend, until December 31, 2008,
up to sixty million dollars ($60,000,000) of the funding allocated to
the Renewable Resources Trust Fund for the program established in
this section, subject to the repayment requirements of subdivision
(f) of Section 25751.
   (d)  Any funds   Funds  for photovoltaic
or solar thermal electric technologies shall be awarded in
compliance with Chapter 8.8 (commencing with Section 25780), and not
with this section.
  SEC. 259.  Section 25747 of the Public Resources Code is amended to
read:
   25747.  (a) The  commission   department
 shall adopt guidelines governing the funding programs
authorized under this chapter, at a publicly noticed meeting offering
all interested parties an opportunity to comment. Substantive
changes to the guidelines may not be adopted without at least 10 days'
written notice to the public. The public notice of meetings required
by this subdivision may not be less than 30 days. Notwithstanding
any other provision of law, any guidelines adopted pursuant to this
chapter or Section 399.13 of the Public Utilities Code, 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. The
Legislature declares that the changes made to this subdivision by
the act amending this section during the 2002 portion of the 2001-02
Regular Session are declaratory of, and not a change in existing law.

   (b) Funds to further the purposes of this chapter may be committed
for multiple years.
   (c) Awards made pursuant to this chapter are grants, subject to
appeal to the  commission   department 
upon a showing that factors other than those described in the
guidelines adopted by the  commission  
department  were applied in making the awards and payments. Any
actions taken by an applicant to apply for, or become or remain
eligible and registered to receive, payments or awards, including
satisfying conditions specified by the  commission, 
 department,  shall not constitute the rendering of goods,
services, or a direct benefit to the  commission 
 department  .
   (d) An award made pursuant to this chapter, the amount of the
award, and the terms and conditions of the grant are public
information.
  SEC. 260.  Section 25748 of the Public Resources Code is amended to
read:
   25748.  (a) The  commission   department
 shall report to the Legislature on or before November 1, 2007,
and annually thereafter, regarding the results of the mechanisms
funded pursuant to this chapter. The report shall contain all of the
following:
   (1) A description of the allocation of funds among existing, new,
and emerging technologies, the allocation of funds among programs,
including consumer-side incentives, and the need for the reallocation
of money among those technologies.
   (2) The status of account transfers and repayments.
   (3) A description of the cumulative commitment of claims by
account, the relative demand for funds by account, and a forecast of
future awards.
   (4) A list identifying the types and quantities of biomass fuels
used by facilities receiving funds pursuant to Section 25742 and
their impacts on improving air quality.
   (5) A discussion of the progress being made toward achieving the
targets established under Section 25740 by each funding category
authorized pursuant to this chapter.
   (6) A description of the allocation of funds from interest on the
accounts described in this chapter, and money in the accounts
described in subdivision (b) of Section 25751.
   (7) An itemized list, including project descriptions, award
amounts, and outcomes for projects awarded funding in the prior year.

   (8) Other matters the  commission  
department  determines may be of importance to the Legislature.
   (b) Money may be reallocated without further legislative action
among existing, new, and emerging technologies and consumer-side
programs in a manner consistent with the report and with the latest
report provided to the Legislature pursuant to this section, except
that reallocations shall not increase the allocation established in
Section 25742.
  SEC. 261.  Section 25751 of the Public Resources Code is amended to
read:
   25751.  (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
   (b) The following accounts are hereby established within the
Renewable Resource Trust Fund:
   (1) Existing Renewable Resources Account.
   (2) Emerging Renewable Resources Account.
   (3) Renewable Resources Consumer Education Account.
   (c) The money in the fund may be expended, only upon appropriation
by the Legislature in the annual Budget Act, for the following
purposes:
   (1) The administration of this article by the state.
   (2) The state's expenditures associated with the accounting system
established by the commission pursuant to subdivision (b) of Section
399.13 of the Public Utilities Code.
   (d) That portion of revenues collected by electrical corporations
for the benefit of in-state operation and development of existing and
new and emerging renewable resource technologies, pursuant to
Section 399.8 of the Public Utilities Code, shall be transmitted to
the  commission   department  at least
quarterly for deposit in the Renewable Resource Trust Fund pursuant
to Section 25740.5. After setting aside in the fund money that may be
needed for expenditures authorized by the annual Budget Act in
accordance with subdivision (c), the Treasurer shall immediately
deposit money received pursuant to this section into the accounts
created pursuant to subdivision (b) in proportions designated by the
 commission   department  for the current
calendar year. Notwithstanding Section 13340 of the Government Code,
the money in the fund and the accounts within the fund are hereby
continuously appropriated to the  commission  
department  without regard to fiscal year for the purposes
enumerated in this chapter.
   (e) Upon notification by the  commission,  
department,  the Controller shall pay all awards of the money in
the accounts created pursuant to subdivision (b) for purposes
enumerated in this chapter. The eligibility of each award shall be
determined solely by the  commission  
department  based on the procedures it adopts under this
chapter. Based on the eligibility of each award, the 
commission   department  shall also establish the
need for a multiyear commitment to any particular award and so advise
the Department of Finance. Eligible awards submitted by the 
commission   department  to the Controller shall
be accompanied by information specifying the account from which
payment should be made and the amount of each payment; a summary
description of how payment of the award furthers the purposes
enumerated in this chapter; and an accounting of future costs
associated with any award or group of awards known to the 
commission   department  to represent a portion of
a multiyear funding commitment.
   (f) The  commission   department  may
transfer funds between accounts for cashflow purposes  ,
provided that   if  the balance due each account is
restored and the transfer does not adversely affect any of the
accounts.
   (g) The Department of Finance shall conduct an independent audit
of the Renewable Resource Trust Fund and its related accounts
annually, and provide an audit report to the Legislature not later
than March 1 of each year for which this article is operative. The
Department of Finance's report shall include information regarding
revenues, payment of awards, reserves held for future commitments,
unencumbered cash balances, and other matters that the Director of
Finance determines may be of importance to the Legislature.
  SEC. 262.  Section 25771 of the Public Resources Code is amended to
read:
   25771.  On or before July 1, 2006, the  commission
  department  shall develop and adopt all of the
following:
   (a) A database of the energy efficiency of a representative sample
of replacement tires sold in the state, based on test procedures
adopted by the commission.
   (b) Based on the data collected pursuant to subdivision (a), a
rating system for the energy efficiency of replacement tires sold in
the state, that will enable consumers to make more informed decisions
when purchasing tires for their vehicles.
   (c) Based on the test procedures adopted pursuant to subdivision
(a) and the rating system established pursuant to subdivision (b),
requirements for tire manufacturers to report to the commission the
energy efficiency of replacement tires sold in the state.
  SEC. 263.  Section 25772 of the Public Resources Code is amended to
read:
   25772.  On or before July 1, 2007, the  commission,
  department,  in consultation with the board,
shall, after appropriate notice and workshops, adopt and, on or
before July 1, 2008, implement, a tire energy efficiency program of
statewide applicability for replacement tires, designed to ensure
that replacement tires sold in the state are at least as energy
efficient, on average, as tires sold in the state as original
equipment on new passenger cars and light-duty trucks.
  SEC. 264.  Section 25773 of the Public Resources Code is amended to
read:
   25773.  (a) The program described in Section 25772 shall include
all of the following:
   (1) The development and adoption of minimum energy efficiency
standards for replacement tires, except to the extent that the
 commission   department  determines that
it is unable to do so in a manner that complies with subparagraphs
(A) to  (E)   (D)  , inclusive. Energy
efficiency standards adopted pursuant to this paragraph shall meet
all of the following conditions:
   (A) Be technically feasible and cost effective.
   (B) Not adversely affect tire safety.
   (C) Not adversely affect the average tire life of replacement
tires.
   (D) Not adversely affect state efforts to manage scrap tires
pursuant to Chapter 17 (commencing with Section 42860) of Part 3 of
Division 30.
   (2) The development and adoption of consumer information
requirements for replacement tires for which standards have been
adopted pursuant to paragraph (1).
   (b) The energy efficiency standards established pursuant to
paragraph (1) of subdivision (a) shall be based on the results of
laboratory testing and, to the extent it is available and deemed
appropriate by the  commission,   department,
 an onroad fleet testing program developed by tire manufacturers
in consultation with the  commission  
department  and the board, conducted by tire manufacturers, and
submitted to the  commission   department 
on or before January 1, 2006.
   (c) If the  commission   department 
finds that tires used to equip an authorized emergency vehicle, as
defined in Section 165 of the Vehicle Code, are unable to meet the
standards established pursuant to paragraph (1) of subdivision (a),
the  commission   department  shall
authorize an operator of an authorized emergency vehicle fleet to
purchase for those vehicles tires that do not meet those standards.
   (d) The  commission,   department,  in
consultation with the board, shall review and revise the program,
including any standards adopted pursuant to the program, as
necessary, but not less than once every three years. The 
commission   department  may not revise the program
or standards in a way that reduces the average efficiency of
replacement tires.
  SEC. 265.  Section 25802 of the Public Resources Code is amended to
read:
   25802.   Each   (a)     A
 person who submits to the  commission  
department  a notice of intent for  any   a
 proposed generating facility shall accompany the notice with a
fee of one cent ($0.01) per kilowatt of net electric capacity of the
proposed generation facility. 
           Such   The  fee shall only be paid on
one of the alternate proposed facility sites  which 
 that  has the highest electrical designed capacity. In no
event shall  such   the  fee be less than
one thousand dollars ($1,000) nor more than twenty-five thousand
dollars ($25,000). 
   For 
    (b)     For  any other facility, the
notice shall be accompanied by a fee of five thousand dollars
($5,000).  Such   The  fee shall only be
paid on one of the alternate proposed facility sites.
  SEC. 266.  Section 25803 of the Public Resources Code is amended to
read:
   25803.   All funds   Funds  received by
the  commission   department  pursuant to
Section 25802, shall be remitted to the State Treasurer for deposit
in the account. All funds in the account shall be expended for
purposes of carrying out the provisions of this division, when
appropriated by the Legislature in the Budget Act.
  SEC. 267.  Section 25900 of the Public Resources Code is amended to
read:
   25900.  Except as provided in Section 25531, whenever the 
commission   department  finds that any provision
of this division is violated or a violation is threatening to take
place  which   that  constitutes an
emergency requiring immediate action to protect the public health,
welfare, or safety, the Attorney General, upon request of the
 commission,   department,  shall petition
a court to enjoin  such   the  violation.
The court shall have jurisdiction to grant  such 
prohibitory or mandatory injunctive relief as may be warranted by way
of temporary restraining order, preliminary injunction, and
permanent injunction.
  SEC. 268.  Section 25901 of the Public Resources Code is amended to
read:
   25901.  (a) Within 30 days after the  department, including
the  commission  ,  issues its determination on any
matter specified in this division, except as provided in Section
25531,  any   an  aggrieved person may file
with the superior court a petition for a writ of mandate for review
 thereof   of the determination  . Failure
to file  such an action   this petition 
does not preclude a person from challenging the reasonableness and
validity of a decision in any judicial proceedings brought to enforce
the decision or to obtain other civil remedies.
   (b)  The decision of the  department or the  commission
shall be sustained by the court unless the court finds (1) that the
commission proceeded without, or in excess of its jurisdiction, (2)
that, based exclusively upon a review of the record before the 
department or the  commission, the decision is not supported by
substantial evidence in light of the whole record, or (3) that the
 department or the  commission failed to proceed in the
manner required by law.
   (c) Except as otherwise provided in this section, subdivisions (f)
and (g) of Section 1094.5 of the Code of Civil Procedure govern
proceedings pursuant to this section.
   (d) The amendment of this section made at the 1989-90 Regular
Session of the Legislature does not constitute a change in, but is
declaratory of, existing law.
  SEC. 269.  Section 25902 of the Public Resources Code is amended to
read:
   25902.  Any evaluations in the reports required by Section
 25309   25302  and any findings and
determinations on the notice of intent pursuant to Chapter 6
(commencing with Section 25500) shall not be construed as a final
evaluation, finding, or determination by the  department or the
 commission and a court action may not be brought to review
 any such   the  evaluation, finding, or
determination.
  SEC. 270.  Section 25911 of the Public Resources Code is amended to
read:
   25911.  The  State Energy Resources Conservation and
Development Commission   commission  may adopt
regulations pertaining to urea formaldehyde foam insulation materials
as are reasonably necessary to protect the public health and safety.
These regulations may include, but are not limited to, prohibition
of the manufacture, sale, or installation of urea formaldehyde foam
insulation, requirements for safety notices to consumers,
certification of installers, and specification of installation
practices. Regulations adopted pursuant to this section shall be
promulgated after public hearings in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. Any regulation adopted by the commission to
prohibit the sale and installation of urea formaldehyde foam
insulation shall be based upon a record of scientific evidence
 which   that  demonstrates the need for
the prohibition in order to protect the public health and safety.
  SEC. 271.  Section 25912 of the Public Resources Code is amended to
read:
   25912.  Prior to adopting any regulation  which 
 that  causes a prohibition on the sale and installation of
urea formaldehyde foam insulation, the  commission 
 department  shall consult with, and solicit written
comments from, all of the following:
   (a) Federal and state agencies with appropriate scientific staffs,
including, but not limited to, the State Department of Health
Services, the National Academy of Sciences, the United States
Department of Housing and Urban Development, the United States
Department of Energy, and the United States Consumer Product Safety
Commission.
   (b) Universities and public and private scientific organizations.
  SEC. 272.  Section 25942 of the Public Resources Code is amended to
read:
   25942.  (a) On or before July 1, 1995, the  commission
  department  shall establish criteria for adopting
a statewide home energy rating program for residential dwellings.
The program criteria shall include, but are not limited to, all of
the following elements:
   (1) Consistent, accurate, and uniform ratings based on a single
statewide rating scale.
   (2) Reasonable estimates of potential utility bill savings, and
reliable recommendations on cost-effective measures to improve energy
efficiency.
   (3) Training and certification procedures for home raters and
quality assurance procedures to promote accurate ratings and to
protect consumers.
   (4) In coordination with home energy rating service organization
data bases, procedures to establish a centralized, publicly
accessible, data base that includes a uniform reporting system for
information on residential dwellings, excluding proprietary
information, needed to facilitate the program. There shall be no
public access to information in the data base concerning specific
dwellings without the owner's or occupant's permission.
   (5) Labeling procedures that will meet the needs of home buyers,
homeowners, renters, the real estate industry, and mortgage lenders
with an interest in home energy ratings.
   (b) The  commission  department  shall
adopt the program pursuant to subdivision (a) in consultation with
representatives of the Department of Real Estate, the Department of
Housing and Community Development, the Public Utilities Commission,
investor-owned and municipal utilities, cities and counties, real
estate licensees, home builders, mortgage lenders, home appraisers
and inspectors, home energy rating organizations, contractors who
provide home energy services, consumer groups, and environmental
groups.
   (c) On and after January 1, 1996, no home energy rating services
may be performed in this state unless the services have been
certified, if such  a certification program is
available, by the  commission   department 
to be in compliance with the program criteria specified in
subdivision (a) and, in addition, are in conformity with any other
applicable element of the program.
   (d) On or before July 1, 1996, the  commission 
 department  shall consult with the agencies and
organizations described in subdivision (b), to facilitate a public
information program to inform homeowners, rental property owners,
renters, sellers, and others of the existence of the statewide home
energy rating program adopted by the  commission 
 department  .
   (e)  Beginning with the 1998 biennial energy conservation
report required by Section 25401.1, the commission   The
department  shall, as part of that biennial report 
prepared pursuant to Section 25302  , report on the progress
made to implement a statewide home energy rating program. The report
shall include an evaluation of the energy savings attributable to the
program, and a recommendation concerning which means and methods
will be most efficient and cost-effective to induce home energy
ratings for residential dwellings.
  SEC. 273.  Section 25967 of the Public Resources Code is amended to
read:
   25967.  (a)  Any   A  person who
violates  any provision of  this chapter shall be
liable for a civil penalty not to exceed two thousand five hundred
dollars ($2,500) for each violation, which shall be assessed and
recovered in a civil action brought in the name of the people of the
State of California by the Attorney General or by any district
attorney, county counsel, or city attorney in any court of competent
jurisdiction.
   (b) If the action is brought by the Attorney General, one-half of
the penalty collected shall be paid to the treasurer of the county in
which the judgment was entered, and one-half to the State Treasurer.
If brought by a district attorney or county counsel, the entire
amount of penalty collected shall be paid to the treasurer of the
county in which the judgment was entered. If brought by a city
attorney or city prosecutor, one-half of the penalty shall be paid to
the treasurer of the county and one-half to the city.
   (c) If the action is brought at the request of the  department
or the  commission, the court shall determine the reasonable
expenses incurred by the  department or the  commission in
the investigation and prosecution of the action. 
   Before 
    (d)     Before  any penalty collected
is paid out pursuant to subdivision (b), the amount of  such
 reasonable expenses incurred by the  department or the
 commission shall be paid to the State Treasurer.
  SEC. 274.  Section 25968 of the Public Resources Code is amended to
read:
   25968.   Any   An  inspector appointed
or authorized by the  commission   department
 shall have access to the premises, equipment, materials, partly
finished and finished articles, and records of any person subject to
 the provisions of  this chapter.
  SEC. 275.  Section 26004 of the Public Resources Code is amended to
read:
   26004.  (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
   (b) The authority shall consist of five members, as follows:
   (1) The Director of Finance.
   (2) The  Chairperson of the State Energy Resources
Conservation and Development Commission   Secretary of
Energy  .
   (3) The President of the Public Utilities Commission.
   (4) The Controller.
   (5) The Treasurer, who shall serve as the chairperson of the
authority.
   (c) The members listed in paragraphs (1) to (5), inclusive, of
subdivision (b) may each designate a deputy or clerk in his or her
agency to act for and represent the member at all meetings of the
authority.
   (d) The first meeting of the authority shall be convened by the
Treasurer.
  SEC. 276.  Section 26011.5 of the Public Resources Code is amended
to read:
   26011.5.  The authority, in consultation with the  State
Energy Resources Conservation and Development Commission, 
 Department of Energy,  shall establish criteria for the
selection of projects to receive financing assistance from the
authority. In the selection of projects, the authority shall, in
accordance with the legislative intent, provide financial assistance
under this division in a manner consistent with sound financial
practice. In developing project selection criteria, the authority
shall consider, but not be limited to, all of the following:
   (a) The technological feasibility of the projects.
   (b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
   (c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
   (d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
   (e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.
  SEC. 277.  Section 26011.6 of the Public Resources Code is amended
to read:
   26011.6.  (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
   (b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of that Chapter 3.5, including Section 11349.6 of the
Government Code, the adoption of the regulations shall be considered
by the Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
   (c) The authority shall consult with the  State Energy
Resources Conservation and Development Commission  
Department of Energy  regarding the financing of projects to
avoid duplication of other renewable energy projects.
   (d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
   (e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
  SEC. 278.  Section 30404 of the Public Resources Code is amended to
read:
   30404.  (a) The commission shall periodically, in the case of the
 State Energy Resources Conservation and Development
Commission,   Department of Energy,  the State
Board of Forestry and Fire Protection, the State Water Resources
Control Board and the California regional water quality control
boards, the State Air Resources Board and air pollution control
districts and air quality management districts, the Department of
Fish and Game, the Department of Parks and Recreation, the Department
of Boating and Waterways, the California Geological Survey and the
Division of Oil, Gas, and Geothermal Resources in the Department of
Conservation, and the State Lands Commission, and may, with respect
to any other state agency, submit recommendations designed to
encourage the state agency to carry out its functions in a manner
consistent with this division. The recommendations may include
proposed changes in administrative regulations, rules, and statutes.
   (b) Each of those state agencies shall review and consider the
commission recommendations and shall, within six months from the date
of their receipt, to the extent that the recommendations have not
been implemented, report to the Governor and the Legislature its
action and reasons therefor. The report shall also include the state
agency's comments on any legislation that may have been proposed by
the commission.
  SEC. 279.  Section 322 is added to the Public Utilities Code, to
read:
   322.  (a) Whenever in this chapter a reference is made to the
"California Energy Resources Conservation and Development Commission,"
the "State Energy Resources Conservation and Development Commission,"
or the "Energy Commission," it means the Department of Energy as
successor to that entity.
   (b) Whenever in this chapter a reference is made to the Department
of Water Resources acting pursuant to Division 27 (commencing with
Section 80000) of the Water Code, it includes the Department of
Energy as the successor to the Department of Water Resources for this
purpose.
  SEC. 280.  Section 332.1 of the Public Utilities Code is amended to
read:
   332.1.  (a) (1) It is the intent of the Legislature to enact Item
1 (revised) on the commission's August 21, 2000 agenda, entitled
"Opinion Modifying Decision (D.) D.00-06-034 and D.00-08-021 to
Regarding Interim Rate Caps for San Diego Gas and Electric Company,"
as modified below.
   (2) It is also the intent of the Legislature that to the extent
that the Federal Energy Regulatory Commission orders refunds to
electrical corporations pursuant to their findings, the commission
shall ensure that any refunds are returned to customers.
   (b) The commission shall establish a ceiling of six and
five-tenths cents ($0.065) per kilowatthour on the energy component
of electric bills for electricity supplied to residential, small
commercial, and street lighting customers by the San Diego Gas and
Electric Company, through December 31, 2002, retroactive to June 1,
2000. If the commission finds it in the public interest, this ceiling
may be extended through December 2003 and may be adjusted as
provided in subdivision (d).
   (c) The commission shall establish an accounting procedure to
track and recover reasonable and prudent costs of providing electric
energy to retail customers unrecovered through retail bills due to
the application of the ceiling provided for in subdivision (b). The
accounting procedure shall utilize revenues associated with sales of
energy from utility-owned or managed generation assets to offset an
undercollection, if undercollection occurs. The accounting procedure
shall be reviewed periodically by the commission, but not less
frequently than semiannually. The commission may utilize an existing
proceeding to perform the review. The accounting procedure and review
shall provide a reasonable opportunity for San Diego Gas and
Electric Company to recover its reasonable and prudent costs of
service over a reasonable period of time.
   (d) If the commission determines that it is in the public interest
to do so, the commission, after the date of the completion of the
proceeding described in subdivision (g), may adjust the ceiling from
the level specified in subdivision (b), and may adjust the frozen
rate from the levels specified in subdivision (f), consistent with
the Legislature's intent to provide substantial protections for
customers of the San Diego Gas and Electric Company and their
interest in just and reasonable rates and adequate service.
   (e) For purposes of this section, "small commercial customer"
includes, but is not limited to, all San Diego Gas and Electric
Company accounts on Rate Schedule A of the San Diego Gas and Electric
Company, all accounts of customers who are "general acute care
hospitals," as defined in Section 1250 of the Health and Safety Code,
all San Diego Gas and Electric Company accounts of customers who are
public or private schools for pupils in kindergarten or any of
grades 1 to 12, inclusive, and all accounts on Rate Schedule AL-TOU
under 100 kilowatts.
   (f) The commission shall establish an initial frozen rate of six
and five-tenths cents ($0.065) per kilowatthour on the energy
component of electric bills for electricity supplied to all customers
by the San Diego Gas and Electric Company not subject to subdivision
(b), for the time period ending with the end of the rate freeze for
the Pacific Gas and Electric Company and the Southern California
Edison Company pursuant to Section 368, retroactive to February 7,
2001. The commission shall consider the comparable energy components
of rates for comparable customer classes served by the Pacific Gas
and Electric Company and the Southern California Edison Company and,
if it determines it to be in the public interest, the commission may
adjust this frozen rate, and may do so, retroactive to the date that
rate increases took effect for customers of Pacific Gas and Electric
Company and Southern California Edison Company pursuant to the
commission's March 27, 2001, decision. The commission shall determine
the Fixed Department of Water Resources Set-Aside pursuant to
Section 360.5 for customers subject to this section, reflecting a
retail rate consistent with the rate for the energy component of
electric bills as determined in this subdivision, in place of the
retail rate in effect on January 5, 2001. This section shall be
construed to modify the payment provisions, but may not be construed
to modify the electric procurement obligations of the Department of
Water Resources, pursuant to any contract or agreement in accordance
with Division 27 (commencing with Section 80000) of the Water Code,
and in effect as of February 7, 2001, between the Department of Water
Resources and San Diego Gas and Electric Company.
   (g) The commission shall institute a proceeding to examine the
prudence and reasonableness of the San Diego Gas and Electric Company
in the procurement of wholesale energy on behalf of its customers,
for a period beginning, at the latest, on June 1, 2000. If the
commission finds that San Diego Gas and Electric Company acted
imprudently or unreasonably, the commission shall issue orders that
it determines to be appropriate affecting the retail rates of San
Diego Gas and Electric Company customers including, but not limited
to, refunds.
   (h)  Nothing in this   This   
section  may be construed to   does not 
limit the authority of the Department of Water Resources  , or
its successor,  pursuant to Division 27 (commencing with Section
80000) of the Water Code.
  SEC. 281.  Article 2 (commencing with Section 334) of Chapter 2.3
of Part 1 of Division 1 of the Public Utilities Code is repealed.
  SEC. 282.  Section 345.1 is added to the Public Utilities Code, to
read:
   345.1.  (a) The Independent System Operator governing board shall
be composed of a five-member independent governing board of directors
appointed by the Governor and subject to confirmation by the Senate.
Any reference in this chapter or in any other provision of law to
the Independent System Operator governing board means the independent
governing board appointed under this subdivision.
   (b) A member of the independent governing board appointed under
subdivision (a) may not be affiliated with any actual or potential
participant in any market administered by the Independent System
Operator.
   (c) (1) All appointments shall be for three-year terms.
   (2) There is no limit on the number of terms that may be served by
any member.
   (d) The Office of Energy Market Oversight shall require the
articles of incorporation and bylaws of the Independent System
Operator to be revised in accordance with this section, and shall
make filings with the Federal Energy Regulatory Commission as the
office determines to be necessary.
   (e) For the purposes of the initial appointments to the
Independent System Operator governing board, as provided in
subdivision (a), the Governor shall appoint one member to a one-year
term, two members to a two-year term, and two members to a three-year
term.
  SEC. 283.  Section 345.2 is added to the Public Utilities Code, to
read:
   345.2.  (a) The Independent System Operator and Power Exchange
bylaws shall contain provisions that identify those matters specified
in subdivision (b) of Section 25227.6 of the Public Resources Code
as matters within state jurisdiction. The bylaws shall also contain
provisions that state that California's bylaws approval function with
respect to the matters specified in subdivision (b) of Section
25227.6 of the Public Resources Code shall not preclude the Federal
Energy Regulatory Commission from taking any action necessary to
address undue discrimination or other violations of the Federal Power
Act (16 U.S.C. Sec. 791a et seq.) or to exercise any other
commission responsibility under the Federal Power Act. In taking this
action, the Federal Energy Regulatory Commission shall give due
respect to California's jurisdictional interests in the functions of
the Independent System Operator and Power Exchange and to attempt to
accommodate state interests to the extent those interests are not
inconsistent with the Federal Energy Regulatory Commission's
statutory responsibilities. The bylaws shall state that any future
agreement regarding the apportionment of the Independent System
Operator and Power Exchange board appointment function among
participating states associated with the expansion of the Independent
System Operator and Power Exchange into multistate entities shall be
filed with the Federal Energy Regulatory Commission pursuant to
Section 205 of the Federal Power Act (16 U.S.C. Sec. 824d).
   (b) Any necessary bylaw changes to implement the provisions of
Section 345.1 or subdivision (a) of this section, or Section 25227.1,
25227.5, or 25227.6 of the Public Resources Code, or changes
required pursuant to an agreement as contemplated by subdivision (a)
of this section with a participating state for a regional
organization, shall be effective upon approval of the respective
governing boards and the Office of Energy Market Oversight and
acceptance for filing by the Federal Energy Regulatory Commission.
  SEC. 284.  Section 346 of the Public Utilities Code is amended to
read:
   346.  The  Independent System Operator  
Department of Energy, through the Office of Energy Market Oversight,
 shall immediately participate in all relevant Federal Energy
Regulatory Commission proceedings. The  Independent System
Operator   Department of Energy 
                       shall ensure that additional filings at the
Federal Energy Regulatory Commission request confirmation of the
relevant provisions of this chapter and seek the authority needed to
give the  Independent System Operator  
Department of Energy  the ability to secure generating and
transmission resources necessary to guarantee achievement of planning
and operating reserve criteria no less stringent than those
established by the Western Electricity Coordinating Council and the
North American Electric Reliability Council.
  SEC. 285.  Section 348 of the Public Utilities Code is amended to
read:
   348.  The Independent System Operator shall adopt inspection,
maintenance, repair, and replacement standards for the transmission
facilities under its control no later than September 30, 1997. The
standards, which shall be performance or prescriptive standards, or
both, as appropriate, for each substantial type of transmission
equipment or facility, shall provide for high quality, safe, and
reliable service. In adopting its standards, the Independent System
Operator shall consider: cost, local geography and weather,
applicable codes, national electric industry practices, sound
engineering judgment, and experience. The Independent System Operator
shall also adopt standards for reliability, and safety during
periods of emergency and disaster. The Independent System Operator
shall report to the  Oversight Board,   Office
of Energy Market Oversight,  at  such   the
 times  as   that  the 
Oversight Board   office  may specify, on the
development and implementation of the standards in relation to
facilities under the operational control of the Independent System
Operator. The Independent System Operator shall require each
transmission facility owner or operator to report annually on its
compliance with the standards. That report shall be made available to
the public.
  SEC. 286.  Section 350 of the Public Utilities Code is amended to
read:
   350.  The Independent System Operator, in consultation with the
 California Energy Resources Conservation and Development
Commission,   Department of Energy,  the Public
Utilities Commission, the Western Electricity Coordinating Council,
and concerned regulatory agencies in other western states, shall
within six months after the Federal Energy Regulatory Commission
approval of the Independent System Operator, provide a report to the
Legislature and to the  Oversight Board   Office
of Energy Market Oversight  that does the following:
   (a) Conducts an independent review and assessment of Western
Electricity Coordinating Council operating reliability criteria.
   (b) Quantifies the economic cost of major transmission outages
relating to the Pacific Intertie, Southwest Power Link, DC link, and
other important high voltage lines that carry power both into and
from California.
   (c) Identifies the range of cost-effective options that would
prevent or mitigate the consequences of major transmission outages.
   (d) Identifies communication protocols that may be needed to be
established to provide advance warning of incipient problems.
   (e) Identifies the need for additional generation reserves and
other voltage support equipment, if any, or other resources that may
be necessary to carry out its functions.
   (f) Identifies transmission capacity additions that may be
necessary at certain times of the year or under certain conditions.
   (g) Assesses the adequacy of current and prospective institutional
provisions for the maintenance of reliability.
   (h) Identifies mechanisms to enforce transmission right-of-way
maintenance.
   (i) Contains recommendations regarding cost-beneficial
improvements to electric system reliability for the citizens of
California.
  SEC. 287.  Section 352 of the Public Utilities Code is amended to
read:
   352.  The Independent System Operator may not enter into a
multistate entity or a regional organization as authorized in Section
359 unless that entry is approved by the  Oversight Board
  Office of Energy Market Oversight  .
  SEC. 288.  Section 353.7 of the Public Utilities Code is amended to
read:
   353.7.  Notwithstanding Section 353.3,  nothing in
 this article  may   does not 
result in any exemption from reasonable interconnection charges, lead
to any reduction in contributions by each customer class to public
purpose programs funded under Section 399.8, or relieve any customer
of any obligation determined by the commission to result from
participation in the purchase of power through the Department of
Water Resources  , or its successor, the Department of Energy,
 pursuant to Division 27 (commencing with Section 80000) of the
Water Code.
  SEC. 289.  Section 360 of the Public Utilities Code is amended to
read:
   360.  The  commission   Department of Energy
 shall ensure that existing, and if necessary, additional
filings at the Federal Energy Regulatory Commission request
confirmation of the relevant provisions of this chapter and seek the
authority needed to give the Independent System Operator the ability
to secure generating and transmission resources necessary to
guarantee achievement of planning and operating reserve criteria no
less stringent than those established by the Western Electricity
Coordinating Council and the North American Electric Reliability
Council.
  SEC. 290.  Section 365 of the Public Utilities Code is amended to
read:
   365.  The actions of the commission pursuant to this chapter shall
be consistent with the findings and declarations contained in
Section 330. In addition, the commission shall do all of the
following:
   (a) Facilitate the efforts of the state's electrical corporations
to develop and obtain authorization from the Federal Energy
Regulatory Commission for the creation and operation of an
Independent System Operator and an independent Power Exchange, for
the determination of which transmission and distribution facilities
are subject to the exclusive jurisdiction of the commission, and for
approval, to the extent necessary, of the cost recovery mechanism
established as provided in Sections 367 to 376, inclusive. The
 commission   Office of Energy Market Oversight
 shall  also  participate fully in all
proceedings before the Federal Energy Regulatory Commission in
connection with the Independent System Operator and the independent
Power Exchange, and shall encourage the Federal Energy Regulatory
Commission to adopt protocols and procedures that strengthen the
reliability of the interconnected transmission grid, encourage all
publicly owned utilities in California to become full participants,
and maximize enforceability of such protocols and procedures by all
market participants.
   (b) (1) Authorize direct transactions between electricity
suppliers and end use customers, subject to implementation of the
nonbypassable charge referred to in Sections 367 to 376, inclusive.
Direct transactions shall commence simultaneously with the start of
an Independent System Operator and Power Exchange referred to in
subdivision (a). The simultaneous commencement shall occur as soon as
practicable, but no later than January 1, 1998. The commission shall
develop a phase-in schedule at the conclusion of which all customers
shall have the right to engage in direct transactions. Any phase-in
of customer eligibility for direct transactions ordered by the
commission shall be equitable to all customer classes and
accomplished as soon as practicable, consistent with operational and
other technological considerations, and shall be completed for all
customers by January 1, 2002.
   (2) Customers shall be eligible for direct access irrespective of
any direct access phase-in implemented pursuant to this section if at
least one-half of that customer's electrical load is supplied by
energy from a renewable resource provider certified pursuant to
Section 383, provided however that nothing in this section shall
provide for direct access for electric consumers served by municipal
utilities unless so authorized by the governing board of that
municipal utility.
  SEC. 291.  Section 366.1 of the Public Utilities Code is amended to
read:
   366.1.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Department" means the Department of Water Resources  , or
it successor, the Department of Energy,  with respect to its
power program described in Chapter 2 (commencing with Section 80100)
of Division 27 of the Water Code.
   (2) "Existing project participant" means a city with rights and
obligations to the Magnolia Power Project under the Magnolia Power
Project Planning Agreement, dated May 1, 2001.
   (3) "Magnolia Power Project" means a proposed natural gas-fired
electric generating facility to be located at an existing site in
Burbank and for which an application for certification has been filed
with the State Energy Resources Conservation and Development Act
(Docket No. 00-SIT-1) and deemed data adequate pursuant to the
expedited six-month licensing process established under Section 25550
of the Public Resources Code.
   (b) Notwithstanding Section 80110 of the Water Code or Commission
Decision 01-09-060, if the Magnolia Power Project has been
constructed and is otherwise capable of beginning deliveries of
electricity to the existing project participants, an existing project
participant may serve as a community aggregator on behalf of all
retail end-use customers within its jurisdiction.
   (c) Subdivision (b) shall not become operative until both of the
following occur:
   (1) The commission implements a cost-recovery mechanism,
consistent with subdivision (d), that is applicable to customers that
elected to purchase electricity from an alternate provider between
February 1, 2001, and the effective date of the act adding this
section.
   (2) The commission submits a report certifying its satisfaction of
paragraph (1) to the Senate Energy, Utilities and Communications
Committee, or its successor, and the Assembly Committee on Utilities
and Commerce, or its successor.
   (d) (1) It is the intent of the Legislature that each retail
end-use customer that has purchased power from an electrical
corporation on or after February 1, 2001, should bear a fair share of
the department's power purchase costs, as well as power purchase
contract obligations incurred as of January 1, 2003, that are
recoverable from electrical corporation customers in
commission-approved rates. It is the further intent of the
Legislature to prevent any shifting of recoverable costs between
customers.
   (2) The Legislature finds and declares that the provisions in this
subdivision are consistent with the requirements of Section 360.5
and Division 27 (commencing with Section 80000) of the Water Code,
and are therefore declaratory of existing law.
   (e) A retail end-use customer purchasing power from a community
aggregator pursuant to subdivision (b) shall reimburse the department
for all of the following:
   (1) A charge equivalent to the charge  which 
 that  would otherwise be imposed on the customer by the
commission to recover bond related costs pursuant to an agreement
between the commission and the  Department of Water Resources
  department  pursuant to Section 80110 of the
Water Code, that charge shall be payable until all obligations of the
 Department of Water Resources   department
 pursuant to Division 27 of the Water Code are fully paid or
otherwise discharged.
   (2) The costs of the department, equal to the share of the
department's estimated net unavoidable power purchase contract costs
attributable to the customer, as determined by the commission, for
the period commencing with the customer's purchases of electricity
from a community aggregator, through the expiration of all then
existing power purchase contracts entered into by the department.
   (f) A retail end-use customer purchasing power from a community
aggregator pursuant to subdivision (b) shall reimburse the electrical
corporation that previously served the customer for all of the
following:
   (1) The electrical corporation's unrecovered past
undercollections, including all financing costs attributable to that
customer, that the commission lawfully determines may be recovered in
rates.
   (2) The costs of the electrical corporation recoverable in
commission-approved rates, equal to the share of the electrical
corporation's estimated net unavoidable power purchase contract costs
attributable to the customer, as determined by the commission, for
the period commencing with the customer's purchases of electricity
from the community aggregator, through the expiration of all then
existing power purchase contracts entered into by the electrical
corporation.
   (g) (1) A charge or cost imposed pursuant to subdivision (e), and
all revenues received to pay the charge or cost, shall be the
property of the  Department of Water Resources  
department  . A charge or cost imposed pursuant to subdivision
(f), and all revenues received to pay the charge or cost, shall be
the property of the particular electrical corporation. The commission
shall establish mechanisms, including agreements with, or orders
with respect to, electrical corporations necessary to assure that the
revenues received to pay a charge or cost payable pursuant to this
section are promptly remitted to the party entitled to those
revenues.
   (2) A charge or cost imposed pursuant to this section shall be
nonbypassable.
  SEC. 292.  Section 366.2 of the Public Utilities Code is amended to
read:
   366.2.  (a) (1) Customers shall be entitled to aggregate their
electric loads as members of their local community with community
choice aggregators.
   (2) Customers may aggregate their loads through a public process
with community choice aggregators, if each customer is given an
opportunity to opt out of their community's aggregation program.
   (3) If a customer opts out of a community choice aggregator's
program, or has no community choice program available, that customer
shall have the right to continue to be served by the existing
electrical corporation or its successor in interest.
   (b) If a public agency seeks to serve as a community choice
aggregator, it shall offer the opportunity to purchase electricity to
all residential customers within its jurisdiction.
   (c) (1) Notwithstanding Section 366, a community choice aggregator
is hereby authorized to aggregate the electrical load of interested
electricity consumers within its boundaries to reduce transaction
costs to consumers, provide consumer protections, and leverage the
negotiation of contracts. However, the community choice aggregator
may not aggregate electrical load if that load is served by a local
publicly owned electric utility. A community choice aggregator may
group retail electricity customers to solicit bids, broker, and
contract for electricity and energy services for those customers. The
community choice aggregator may enter into agreements for services
to facilitate the sale and purchase of electricity and other related
services. Those service agreements may be entered into by a single
city or county, a city and county, or by a group of cities, cities
and counties, or counties.
   (2) Under community choice aggregation, customer participation may
not require a positive written declaration, but all customers shall
be informed of their right to opt out of the community choice
aggregation program. If no negative declaration is made by a
customer, that customer shall be served through the community choice
aggregation program.
   (3) A community choice aggregator establishing electrical load
aggregation pursuant to this section shall develop an implementation
plan detailing the process and consequences of aggregation. The
implementation plan, and any subsequent changes to it, shall be
considered and adopted at a duly noticed public hearing. The
implementation plan shall contain all of the following:
   (A) An organizational structure of the program, its operations,
and its funding.
   (B) Ratesetting and other costs to participants.
   (C) Provisions for disclosure and due process in setting rates and
allocating costs among participants.
   (D) The methods for entering and terminating agreements with other
entities.
   (E) The rights and responsibilities of program participants,
including, but not limited to, consumer protection procedures, credit
issues, and shutoff procedures.
   (F) Termination of the program.
   (G) A description of the third parties that will be supplying
electricity under the program, including, but not limited to,
information about financial, technical, and operational capabilities.

   (4) A community choice aggregator establishing electrical load
aggregation shall prepare a statement of intent with the
implementation plan. Any community choice load aggregation
established pursuant to this section shall provide for the following:

   (A) Universal access.
   (B) Reliability.
   (C) Equitable treatment of all classes of customers.
   (D) Any requirements established by state law or by the commission
concerning aggregated service.
   (5) In order to determine the cost-recovery mechanism to be
imposed on the community choice aggregator pursuant to subdivisions
(d), (e), and (f) that shall be paid by the customers of the
community choice aggregator to prevent shifting of costs, the
community choice aggregator shall file the implementation plan with
the commission, and any other information requested by the commission
that the commission determines is necessary to develop the
cost-recovery mechanism in subdivisions (d), (e), and (f).
   (6) The commission shall notify any electrical corporation serving
the customers proposed for aggregation that an implementation plan
initiating community choice aggregation has been filed, within 10
days of the filing.
   (7) Within 90 days after the community choice aggregator
establishing load aggregation files its implementation plan, the
commission shall certify that it has received the implementation
plan, including any additional information necessary to determine a
cost-recovery mechanism. After certification of receipt of the
implementation plan and any additional information requested, the
commission shall then provide the community choice aggregator with
its findings regarding any cost recovery that must be paid by
customers of the community choice aggregator to prevent a shifting of
costs as provided for in subdivisions (d), (e), and (f).
   (8) No entity proposing community choice aggregation shall act to
furnish electricity to electricity consumers within its boundaries
until the commission determines the cost-recovery that must be paid
by the customers of that proposed community choice aggregation
program, as provided for in subdivisions (d), (e), and (f). The
commission shall designate the earliest possible effective date for
implementation of a community choice aggregation program, taking into
consideration the impact on any annual procurement plan of the
electrical corporation that has been approved by the commission.
   (9) All electrical corporations shall cooperate fully with any
community choice aggregators that investigate, pursue, or implement
community choice aggregation programs. Cooperation shall include
providing the entities with appropriate billing and electrical load
data, including, but not limited to, data detailing electricity needs
and patterns of usage, as determined by the commission, and in
accordance with procedures established by the commission. Electrical
corporations shall continue to provide all metering, billing,
collection, and customer service to retail customers that participate
in community choice aggregation programs. Bills sent by the
electrical corporation to retail customers shall identify the
community choice aggregator as providing the electrical energy
component of the bill. The commission shall determine the terms and
conditions under which the electrical corporation provides services
to community choice aggregators and retail customers.
   (10) (A) A city, county, or city and county that elects to
implement a community choice aggregation program within its
jurisdiction pursuant to this chapter shall do so by ordinance.
   (B) Two or more cities, counties, or cities and counties may
participate as a group in a community choice aggregation pursuant to
this chapter, through a joint powers agency established pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code, if each entity adopts an ordinance pursuant to
subparagraph (A).
   (11) Following adoption of aggregation through the ordinance
described in paragraph (10), the program shall allow any retail
customer to opt out and to continue to be served as a bundled service
customer by the existing electrical corporation, or its successor in
interest. Delivery services shall be provided at the same rates,
terms, and conditions, as approved by the commission, for community
choice aggregation customers and customers that have entered into a
direct transaction where applicable, as determined by the commission.
Once enrolled in the aggregated entity, any ratepayer that chooses
to opt out within 60 days or two billing cycles of the date of
enrollment may do so without penalty and shall be entitled to receive
default service pursuant to paragraph (3) of subdivision (a).
Customers that return to the electrical corporation for procurement
services shall be subject to the same terms and conditions as are
applicable to other returning direct access customers from the same
class, as determined by the commission, as authorized by the
commission pursuant to this code or any other provision of law. Any
reentry fees to be imposed after the opt-out period specified in this
paragraph, shall be approved by the commission and shall reflect the
cost of reentry. The commission shall exclude any amounts previously
determined and paid pursuant to subdivisions (d), (e), and (f) from
the cost of reentry.
   (12) Nothing in this section shall be construed as authorizing any
city or any community choice retail load aggregator to restrict the
ability of retail electricity customers to obtain or receive service
from any authorized electric service provider in a manner consistent
with law.
   (13) (A) The community choice aggregator shall fully inform
participating customers at least twice within two calendar months, or
60 days, in advance of the date of commencing automatic enrollment.
Notifications may occur concurrently with billing cycles. Following
enrollment, the aggregated entity shall fully inform participating
customers for not less than two consecutive billing cycles.
Notification may include, but is not limited to, direct mailings to
customers, or inserts in water, sewer, or other utility bills. Any
notification shall inform customers of both of the following:
   (i) That they are to be automatically enrolled and that the
customer has the right to opt out of the community choice aggregator
without penalty.
   (ii) The terms and conditions of the services offered.
   (B) The community choice aggregator may request the commission to
approve and order the electrical corporation to provide the
notification required in subparagraph (A). If the commission orders
the electrical corporation to send one or more of the notifications
required pursuant to subparagraph (A) in the electrical corporation's
normally scheduled monthly billing process, the electrical
corporation shall be entitled to recover from the community choice
aggregator all reasonable incremental costs it incurs related to the
notification or notifications. The electrical corporation shall fully
cooperate with the community choice aggregator in determining the
feasibility and costs associated with using the electrical
corporation's normally scheduled monthly billing process to provide
one or more of the notifications required pursuant to subparagraph
(A).
   (C) Each notification shall also include a mechanism by which a
ratepayer may opt out of community choice aggregated service. The opt
out may take the form of a self-addressed return postcard indicating
the customer's election to remain with, or return to, electrical
energy service provided by the electrical corporation, or another
straightforward means by which the customer may elect to derive
electrical energy service through the electrical corporation
providing service in the area.
   (14) The community choice aggregator shall register with the
commission, which may require additional information to ensure
compliance with basic consumer protection rules and other procedural
matters.
   (15) Once the community choice aggregator's contract is signed,
the community choice aggregator shall notify the applicable
electrical corporation that community choice service will commence
within 30 days.
   (16) Once notified of a community choice aggregator program, the
electrical corporation shall transfer all applicable accounts to the
new supplier within a 30-day period from the date of the close of
their normally scheduled monthly metering and billing process.
   (17) An electrical corporation shall recover from the community
choice aggregator any costs reasonably attributable to the community
choice aggregator, as determined by the commission, of implementing
this section, including, but not limited to, all business and
information system changes, except for transaction-based costs as
described in this paragraph. Any costs not reasonably attributable to
a community choice aggregator shall be recovered from ratepayers, as
determined by the commission. All reasonable transaction-based costs
of notices, billing, metering, collections, and customer
communications or other services provided to an aggregator or its
customers shall be recovered from the aggregator or its customers on
terms and at rates to be approved by the commission.
   (18) At the request and expense of any community choice
aggregator, electrical corporations shall install, maintain and
calibrate metering devices at mutually agreeable locations within or
adjacent to the community aggregator's political boundaries. The
electrical corporation shall read the metering devices and provide
the data collected to the community aggregator at the aggregator's
expense. To the extent that the community aggregator requests a
metering location that would require alteration or modification of a
circuit, the electrical corporation shall only be required to alter
or modify a circuit if such alteration or modification does not
compromise the safety, reliability or operational flexibility of the
electrical corporation's facilities. All costs incurred to modify
circuits pursuant to this paragraph, shall be borne by the community
                                            aggregator.
   (d) (1) It is the intent of the Legislature that each retail
end-use customer that has purchased power from an electrical
corporation on or after February 1, 2001, should bear a fair share of
the  Department of Water Resources'  electricity
purchase costs  of the Department of Water Resources, or its
successor, the Department of Energy  , as well as electricity
purchase contract obligations incurred as of the effective date of
the act adding this section, that are recoverable from electrical
corporation customers in commission-approved rates. It is further the
intent of the Legislature to prevent any shifting of recoverable
costs between customers.
   (2) The Legislature finds and declares that this subdivision is
consistent with the requirements of Division 27 (commencing with
Section 80000) of the Water Code and Section 360.5, and is therefore
declaratory of existing law.
   (e) A retail end-use customer that purchases electricity from a
community choice aggregator pursuant to this section shall pay both
of the following:
   (1) A charge equivalent to the charges that would otherwise be
imposed on the customer by the commission to recover bond related
costs pursuant to any agreement between the commission and the
Department of Water Resources  , or its successor, the Department
of Energy,  pursuant to Section 80110 of the Water Code, which
charge shall be payable until any obligations of the Department of
Water Resources pursuant to Division 27 (commencing with Section
80000) of the Water Code are fully paid or otherwise discharged.
   (2) Any additional costs of the Department of Water Resources 
, or its successor, the Department of Energy  , equal to the
customer's proportionate share of the Department of Water Resources'
estimated net unavoidable electricity purchase contract costs as
determined by the commission, for the period commencing with the
customer's purchases of electricity from the community choice
aggregator, through the expiration of all then existing electricity
purchase contracts entered into by the Department of Water Resources
 , or its successor  .
   (f) A retail end-use customer purchasing electricity from a
community choice aggregator pursuant to this section shall reimburse
the electrical corporation that previously served the customer for
all of the following:
   (1) The electrical corporation's unrecovered past undercollections
for electricity purchases, including any financing costs,
attributable to that customer, that the commission lawfully
determines may be recovered in rates.
   (2) Any additional costs of the electrical corporation recoverable
in commission-approved rates, equal to the share of the electrical
corporation's estimated net unavoidable electricity purchase contract
costs attributable to the customer, as determined by the commission,
for the period commencing with the customer's purchases of
electricity from the community choice aggregator, through the
expiration of all then existing electricity purchase contracts
entered into by the electrical corporation.
   (g) (1) Any charges imposed pursuant to subdivision (e) shall be
the property of the Department of Water Resources. Any charges
imposed pursuant to subdivision (f) shall be the property of the
electrical corporation. The commission shall establish mechanisms,
including agreements with, or orders with respect to, electrical
corporations necessary to ensure that charges payable pursuant to
this section shall be promptly remitted to the party entitled to
payment.
   (2) Charges imposed pursuant to subdivisions (d), (e), and (f)
shall be nonbypassable.
   (h) Notwithstanding Section 80110 of the Water Code, the
commission shall authorize community choice aggregation only if the
commission imposes a cost-recovery mechanism pursuant to subdivisions
(d), (e), (f), and (g). Except as provided by this subdivision, this
section shall not alter the suspension by the commission of direct
purchases of electricity from alternate providers other than by
community choice aggregators, pursuant to Section 80110 of the Water
Code.
   (i) (1) The commission shall not authorize community choice
aggregation until it implements a cost-recovery mechanism, consistent
with subdivisions (d), (e), and (f), that is applicable to customers
that elected to purchase electricity from an alternate provider
between February 1, 2001, and January 1, 2003.
   (2) The commission shall not authorize community choice
aggregation until it submits a report certifying compliance with
paragraph (1) to the Senate Energy, Utilities and Communications
Committee, or its successor, and the Assembly Committee on Utilities
and Commerce, or its successor.
   (3) The commission shall not authorize community choice
aggregation until it has adopted rules for implementing community
choice aggregation.
   (j) The commission shall prepare and submit to the Legislature, on
or before January 1, 2006, a report regarding the number of
community choices aggregations, the number of customers served by
community choice aggregations, third party suppliers to community
choice aggregations, compliance with this section, and the overall
effectiveness of community choice aggregation programs.
  SEC. 293.  Section 384 of the Public Utilities Code is amended to
read:
   384.  (a) Funds transferred to the  State Energy Resources
Conservation and Development Commission   Department of
Energy  pursuant to this article for purposes of public
interest research, development, and demonstration shall be
transferred to the Public Interest Research, Development, and
Demonstration Fund, which is hereby created in the State Treasury.
The fund is a trust fund and shall contain money from all interest,
repayments, disencumbrances, royalties, and any other proceeds
appropriated, transferred, or otherwise received for purposes
pertaining to public interest research, development, and
demonstration. Any appropriations that are made from the fund shall
have an encumbrance period of not longer than two years, and a
liquidation period of not longer than four years.
   (b) Funds deposited in the Public Interest Research, Development,
and Demonstration Fund may be expended for projects that serve the
energy needs of both stationary and transportation purposes if the
research provides an electricity ratepayer benefit.
   (c) The  State Energy Resources Conservation and
Development Commission   Department of Energy 
shall report annually to the appropriate budget committees of the
Legislature on any encumbrances or liquidations that are outstanding
at the time the commission's budget is submitted to the Legislature
for review.
  SEC. 294.  Section 398.2 of the Public Utilities Code is amended to
read:
   398.2.  The definitions set forth in this section shall govern the
construction of this article.
   (a) "System operator" means the Independent System Operator with
responsibility for the efficient use and reliable operation of the
transmission grid, as provided by Section 345, or a local publicly
owned electric utility that does not utilize the Independent System
Operator.
   (b) "Specific purchases" means electricity transactions 
which   that  are traceable to specific generation
sources by any auditable contract trail or equivalent, such as a
tradable commodity system, that provides commercial verification that
the electricity source claimed has been sold once and only once to a
retail consumer. Retail suppliers may rely on annual data to meet
this requirement, rather than hour-by-hour matching of loads and
resources.
   (c) "Net system power" means the mix of electricity fuel source
types established by the  California Energy Resources
Conservation and Development Commission   Department of
Energy  representing the sources of electricity consumed in
California that are not disclosed as specific purchases pursuant to
Section 398.4.
  SEC. 295.  Section 398.3 of the Public Utilities Code is amended to
read:
   398.3.  (a) Beginning January 1, 1998, or as soon as practicable
thereafter, each generator that provides meter data to a system
operator shall report to the system operator electricity generated in
kilowatthours by hour by generator, the fuel type or fuel types and
fuel consumption by fuel type by month on an historical recorded
quarterly basis. Facilities using only one fuel type may satisfy this
requirement by reporting fuel type only. With regard to any facility
using more than one fuel type, reports shall reflect the fuel
consumed as a percentage of electricity generation.
   (b) The  California Energy Resources Conservation and
Development Commission   Department of Energy 
shall have authorization to access the electricity generation data in
kilowatthours by hour for each facility that provides meter data to
the system operator, and the fuel type or fuel types.
   (c) With regard to out-of-state generation, the 
California Energy Resources Conservation and Development Commission
  Department of Energy  shall have authorization to
access the electricity generation data in kilowatthours by hour at
the point at which out-of-state generation is metered, to the extent
the information has been submitted to a system operator.
   (d) Trade secrets as defined in subdivision (d) of Section 3426.1
of the Civil Code contained in the information provided to the system
operators pursuant to this section shall be treated as confidential.
These data may be disclosed only by the system operators and only by
authorization of the generator except that the  California
Energy Resources Conservation and Development Commission 
 Department of Energy  shall have authorization to access
these data, shall consider all these data to be trade secrets, and
shall only release these data in an aggregated form such that trade
secrets cannot be discerned.
  SEC. 296.  Section 398.5 of the Public Utilities Code is amended to
read:
   398.5.  (a) Retail suppliers that disclose specific purchases
pursuant to Section 398.4 shall report on March 1, 1999, and annually
thereafter, to the  California Energy Resources Conservation
and Development Commission,   Department of Energy,
 for each electricity offering, for the previous calendar year
each of the following:
   (1) The kilowatthours purchased, by generator and fuel type during
the previous calendar year, consistent with the meter data,
including losses, reported to the system operator.
   (2) For each electricity offering the kilowatthours sold at
retail.
   (3) For each electricity offering the disclosures made to
consumers pursuant to Section 398.4.
   (b) Information submitted to the  California Energy
Resources Conservation and Development Commission  
Department of Energy  pursuant to this section that is a trade
secret as defined in subdivision (d) of Section 3426.1 of the Civil
Code shall not be released except in an aggregated form such that
trade secrets cannot be discerned.
   (c) On or before January 1, 1998, the  California Energy
Resources Conservation and Development Commission  
Department of Energy  shall specify guidelines and standard
formats, based on the requirements of this article and subject to
public hearing, for the submittal of information pursuant to this
article.
   (d) In developing the rules and procedures specified in this
section, the  California Energy Resources Conservation and
Development Commission   Department of Energy 
shall seek to minimize the reporting burden and cost of reporting
that it imposes on retail suppliers.
   (e) On or before October 15, 1999, and annually thereafter, the
 California Energy Resources Conservation and Development
Commission   Department of Energy  shall issue a
report comparing information available pursuant to Section 398.3 with
information submitted by retail suppliers pursuant to this section,
and with information disclosed to consumers pursuant to Section
398.4. This report shall be forwarded to the California Public
Utilities Commission.
   (f) Beginning April 15, 1999, and annually thereafter, the
 California Energy Resources Conservation and Development
Commission   Department of Energy  shall issue a
report calculating net system power. The  California Energy
Resources Conservation and Development Commission  
department  will establish the generation mix for net generation
imports delivered at interface points and metered by the system
operators. The  California Energy Resources Conservation and
Development Commission   department  shall issue an
initial report calculating preliminary net system power for calendar
year 1997 on or before January 1, 1998. This report shall be updated
on or before October 15, 1998.
   (g)  The provisions of this   This 
section  shall   does  not apply to
generators providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
   (h) The  California Energy Resources Conservation and
Development Commission   Department of Energy  may
verify the veracity of environmental claims made by retail suppliers.

  SEC. 297.  Section 399.25 of the Public Utilities Code is amended
to read:
   399.25.  (a) Notwithstanding any other provision in Sections 1001
to 1013, inclusive, an application of an electrical corporation for a
certificate authorizing the construction of new transmission
facilities shall be deemed to be necessary to the provision of
electric service for purposes of any determination made under Section
1003 if the  commission   Department of Energy
 finds that the new facility is necessary to facilitate
achievement of the renewable power goals established in Article 16
(commencing with Section 399.11).
   (b) With respect to a transmission facility described in
subdivision (a), the  commission   Department of
Energy  shall take all feasible actions to ensure that the
transmission rates established by the Federal Energy Regulatory
Commission are fully reflected in any retail rates established by the
commission. These actions shall include, but are not limited to:
   (1) Making findings, where supported by an evidentiary record,
that those transmission facilities provide benefit to the
transmission network and are necessary to facilitate the achievement
of the renewables portfolio standard established in Article 16
(commencing with Section 399.11).
   (2) Directing the utility to which the generator will be
interconnected, where the direction is not preempted by federal law,
to seek the recovery through general transmission rates of the costs
associated with the transmission facilities.
   (3) Asserting the positions described in paragraphs (1) and (2) to
the Federal Energy Regulatory Commission in appropriate proceedings.

   (4) Allowing 
    (c)     The commission shall allow 
recovery in retail rates of any increase in transmission costs
incurred by an electrical corporation resulting from the construction
of the transmission facilities that are not approved for recovery in
transmission rates by the Federal Energy Regulatory Commission after
the commission determines that the costs were prudently incurred in
accordance with subdivision (a) of Section 454.
  SEC. 298.  Section 399.8 of the Public Utilities Code is amended to
read:
   399.8.  (a) In order to ensure that the citizens of this state
continue to receive safe, reliable, affordable, and environmentally
sustainable electric service, it is the policy of this state and the
intent of the Legislature that prudent investments in energy
efficiency, renewable energy, and research, development and
demonstration shall continue to be made.
   (b) (1) Every customer of an electrical corporation shall pay a
nonbypassable system benefits charge authorized pursuant to this
article. The system benefits charge shall fund energy efficiency,
renewable energy, and research, development and demonstration.
   (2) Local publicly owned electric utilities shall continue to
collect and administer system benefits charges pursuant to Section
385.
   (c) (1) The commission shall require each electrical corporation
to identify a separate rate component to collect revenues to fund
energy efficiency, renewable energy, and research, development and
demonstration programs authorized pursuant to this section beginning
January 1, 2002, and ending January 1, 2012. The rate component shall
be a nonbypassable element of the local distribution service and
collected on the basis of usage.
   (2) This rate component may not exceed, for any tariff schedule,
the level of the rate component that was used to recover funds
authorized pursuant to Section 381 on January 1, 2000. If the amounts
specified in paragraph (1) of subdivision (d) are not recovered
fully in any year, the commission shall reset the rate component to
restore the unrecovered balance, provided that the rate component may
not exceed, for any tariff schedule, the level of the rate component
that was used to recover funds authorized pursuant to Section 381 on
January 1, 2000. Pending restoration, any annual shortfalls shall be
allocated pro rata among the three funding categories in the
proportions established in paragraph (1) of subdivision (d).
   (d) The commission shall order San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company to collect these funds commencing on January 1, 2002, as
follows:
   (1) Two hundred twenty-eight million dollars ($228,000,000) per
year in total for energy efficiency and conservation activities,
sixty-five million five hundred thousand dollars ($65,500,000) in
total per year for renewable energy, and sixty-two million five
hundred thousand dollars ($62,500,000) in total per year for
research, development and demonstration. The funds for energy
efficiency and conservation activities shall continue to be allocated
in proportions established for the year 2000 as set forth in
paragraph (1) of subdivision (c) of Section 381.
   (2) The amounts shall be adjusted annually at a rate equal to the
lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
   (e) The commission shall ensure that each electrical corporation
allocates funds transferred by the  Energy Commission
  department  pursuant to subdivision (b) of
Section 25743 in a manner that maximizes the economic benefit to all
customer classes that funded the New Renewable Resources Account.
   (f) The commission and the  Energy Commission 
 department  shall retain and continue their oversight
responsibilities as set forth in Sections 381 and 383  of this
code  , and Chapter 7.1 (commencing with Section 25620) and
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
   (g) An applicant for the Large Nonresidential Standard Performance
Contract Program funded pursuant to paragraph (1) of subdivision (b)
and an electrical corporation shall promptly attempt to resolve
disputes that arise related to the program's guidelines and
parameters prior to entering into a program agreement. The applicant
shall provide the electrical corporation with written notice of any
dispute. Within 10 business days after receipt of the notice, the
parties shall meet to resolve the dispute. If the dispute is not
resolved within 10 business days after the date of the meeting, the
electrical corporation shall notify the applicant of his or her right
to file a complaint with the commission, which complaint shall
describe the grounds for the complaint, injury, and relief sought.
The commission shall issue its findings in response to a filed
complaint within 30 business days of the date of receipt of the
complaint. Prior to issuance of its findings, the commission shall
provide a copy of the complaint to the electrical corporation, which
shall provide a response to the complaint to the commission within
five business days of the date of receipt. During the dispute period,
the amount of estimated financial incentives shall be held in
reserve until the dispute is resolved.
  SEC. 299.  Section 399.11 of the Public Utilities Code is amended
to read:
   399.11.  The Legislature finds and declares all of the following:
   (a) In order to attain a target of generating 20 percent of total
retail sales of electricity in California from eligible renewable
energy resources by December 31, 2010, and for the purposes of
increasing the diversity, reliability, public health and
environmental benefits of the energy mix, it is the intent of the
Legislature that the commission and the  State Energy
Resources Conservation and Development Commission  
Department of Energy  implement the California Renewables
Portfolio Standard Program described in this article.
   (b) Increasing California's reliance on eligible renewable energy
resources may promote stable electricity prices, protect public
health, improve environmental quality, stimulate sustainable economic
development, create new employment opportunities, and reduce
reliance on imported fuels.
   (c) The development of eligible renewable energy resources and the
delivery of the electricity generated by those resources to
customers in California may ameliorate air quality problems
throughout the state and improve public health by reducing the
burning of fossil fuels and the associated environmental impacts and
by reducing in-state fossil fuel consumption.
   (d) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the  State Energy Resources Conservation and
Development Commission   Department of Energy and
established pursuant to Chapter 8.6 (commencing with Section 25740)
of Division 15 of the Public Resources Code.
   (e) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.
  SEC. 300.  Section 399.12 of the Public Utilities Code is amended
to read:
   399.12.  For purposes of this article, the following terms have
the following meanings:
   (a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
   (b) "Delivered" and "delivery" have the same meaning as provided
in subdivision (a) of Section 25741 of the Public Resources Code.
   (c) "Eligible renewable energy resource" means an electric
generating facility that meets the definition of "in-state renewable
electricity generation facility" in Section 25741 of the Public
Resources Code, subject to the following limitations:
   (1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility owned or procured the electricity
from the facility as of December 31, 2005. A new hydroelectric
facility is not an eligible renewable energy resource if it will
cause an adverse impact on instream beneficial uses or cause a change
in the volume or timing of streamflow.
   (B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
   (2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable resource unless it is
located in Stanislaus County and was operational prior to September
26, 1996.
   (d) "Procure" means that a retail seller or local publicly owned
electric utility receives delivered electricity generated by an
eligible renewable energy resource that it owns or for which it has
entered into an electricity purchase agreement. Nothing in this
article is intended to imply that the purchase of electricity from
third parties in a wholesale transaction is the preferred method of
fulfilling a retail seller's obligation to comply with this article
or the obligation of a local publicly owned electric utility to meet
its renewables portfolio standard implemented pursuant to Section
387.
   (e) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller is required to procure pursuant to this article or
the obligation of a local publicly owned electric utility to meet its
renewables portfolio standard implemented pursuant to Section 387.
   (f) (1) "Renewable energy credit" means a certificate of proof,
issued through the accounting system established by the 
Energy Commission   Department of Energy  pursuant
to Section 399.13, that one unit of electricity was generated and
delivered by an eligible renewable energy resource.
   (2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
   (3) No electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity, as determined by the Energy Commission, shall
result in the creation of a renewable energy credit.
   (g) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
   (1) An electrical corporation, as defined in Section 218.
   (2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
   (3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric
                  service provider shall be subject to the same terms
and conditions applicable to an electrical corporation pursuant to
this article.  Nothing in this   This 
paragraph  shall   does not  impair a
contract entered into between an electric service provider and a
retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
   (4) "Retail seller" does not include any of the following:
   (A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.

   (B) The Department of Water Resources  , or its successor, the
Department of Energy,  acting in its capacity pursuant to
Division 27 (commencing with Section 80000) of the Water Code.
   (C) A local publicly owned electric utility.
  SEC. 301.  Section 399.13 of the Public Utilities Code is amended
to read:
   399.13.  The  Energy Commission   department
 shall do all of the following:
   (a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision  (b) 
 (c)  of Section 399.12.
   (b) Design and implement an accounting system to verify compliance
with the renewables portfolio standard by retail sellers, to ensure
that electricity generated by an eligible renewable energy resource
is counted only once for the purpose of meeting the renewables
portfolio standard of this state or any other state, to certify
renewable energy credits produced by eligible renewable energy
resources, and to verify retail product claims in this state or any
other state. In establishing the guidelines governing this accounting
system, the  Energy Commission   department
 shall collect data from electricity market participants that it
deems necessary to verify compliance of retail sellers, in
accordance with the requirements of this article and the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code). In seeking data from
electrical corporations, the Energy Commission  
department  shall request data from the commission. The
commission shall collect data from electrical corporations and remit
the data to the  Energy Commission   department
 within 90 days of the request.
   (c) Establish a system for tracking and verifying renewable energy
credits that, through the use of independently audited data,
verifies the generation and delivery of electricity associated with
each renewable energy credit and protects against multiple counting
of the same renewable energy credit. The  Energy Commission
  department  shall consult with other western
states and with the Western Electricity Coordinating Council in the
development of this system.
   (d) Certify, for purposes of compliance with the renewable
portfolio standard requirements by a retail seller, the eligibility
of renewable energy credits associated with deliveries of electricity
by an eligible renewable energy resource to a local publicly owned
electric utility, if the  Energy Commission  
department  determines that the following conditions have been
satisfied:
   (1) The local publicly owned electric utility that is procuring
the electricity is in compliance with the requirements of Section
387.
   (2) The local publicly owned electric utility has established an
annual renewables portfolio standard target comparable to those
applicable to an electrical corporation, is procuring sufficient
eligible renewable energy resources to satisfy the targets, and will
not fail to satisfy the targets in the event that the renewable
energy credit is sold to another retail seller.
  SEC. 302.  Section 399.15 of the Public Utilities Code is amended
to read:
   399.15.  (a) In order to fulfill unmet long-term resource needs,
the commission shall establish a renewables portfolio standard
requiring all electrical corporations to procure a minimum quantity
of electricity generated by eligible renewable energy resources as a
specified percentage of total kilowatthours sold to their retail
end-use customers each calendar year, subject to limits on the total
amount of costs expended above the market prices determined in
subdivision (c), to achieve the targets established under this
article.
   (b) The commission shall implement annual procurement targets for
each retail seller as follows:
   (1) Each retail seller shall, pursuant to subdivision (a),
increase its total procurement of eligible renewable energy resources
by at least an additional 1 percent of retail sales per year so that
20 percent of its retail sales are procured from eligible renewable
energy resources no later than December 31, 2010. A retail seller
with 20 percent of retail sales procured from eligible renewable
energy resources in any year shall not be required to increase its
procurement of renewable energy resources in the following year.
   (2) For purposes of setting annual procurement targets, the
commission shall establish an initial baseline for each retail seller
based on the actual percentage of retail sales procured from
eligible renewable energy resources in 2001, and to the extent
applicable, adjusted going forward pursuant to Section 399.12.
   (3) Only for purposes of establishing these targets, the
commission shall include all electricity sold to retail customers by
the Department of Water Resources  , or its successor, 
pursuant to Section 80100 of the Water Code in the calculation of
retail sales by an electrical corporation.
   (4) In the event that a retail seller fails to procure sufficient
eligible renewable energy resources in a given year to meet any
annual target established pursuant to this subdivision, the retail
seller shall procure additional eligible renewable energy resources
in subsequent years to compensate for the shortfall, subject to the
limitation on costs for electrical corporations established pursuant
to subdivision (d).
   (c) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with eligible renewable energy resources, in consideration
of the following:
   (1) The long-term market price of electricity for fixed price
contracts, determined pursuant to an electrical corporation's general
procurement activities as authorized by the commission.
   (2) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities.
   (3) The value of different products including baseload, peaking,
and as-available electricity.
   (d) The commission shall establish, for each electrical
corporation, a limitation on the total costs expended above the
market prices determined in subdivision (c) for the procurement of
eligible renewable energy resources to achieve the annual procurement
targets established under this article.
   (1) The cost limitation shall be equal to the amount of funds
transferred to each electrical corporation by the  Energy
Commission   department  pursuant to subdivision
(b) of Section 25743 of the Public Resources Code and the 51.5
percent of the funds which would have been collected through January
1, 2012, from the customers of the electrical corporation based on
the renewable energy public goods charge in effect as of January 1,
2007.
   (2) The above-market costs of a contract selected by an electrical
corporation may be counted toward the cost limitation if all of the
following conditions are satisfied:
   (A) The contract has been approved by the commission and was
selected through a competitive solicitation pursuant to the
requirements of subdivision (d) of Section 399.14.
   (B) The contract covers a duration of no less than 10 years.
   (C) The contracted project is a new or repowered facility
commencing commercial operations on or after January 1, 2005.
   (D) No purchases of renewable energy credits may be eligible for
consideration as an above-market cost.
   (E) The above-market costs of a contract do not include any
indirect expenses including imbalance energy charges, sale of excess
energy, decreased generation from existing resources, or transmission
upgrades.
   (3) If the cost limitation for an electrical corporation is
insufficient to support the total costs expended above the market
prices determined in subdivision (c) for the procurement of eligible
renewable energy resources satisfying the conditions of paragraph
(2), the commission shall allow the electrical corporation to limit
its procurement to the quantity of eligible renewable energy
resources that can be procured at or below the market prices
established in subdivision (c).
   (4)  Nothing in this   This  section
 prevents   does not prevent  an electrical
corporation from voluntarily proposing to procure eligible renewable
energy resources at above-market prices that are not counted toward
the cost limitation. Any voluntary procurement involving above-market
costs shall be subject to commission approval prior to the expense
being recovered in rates.
   (e) The establishment of a renewables portfolio standard shall not
constitute implementation by the commission of the federal Public
Utility Regulatory Policies Act of 1978 (Public Law 95-617).
   (f) The commission shall consult with the  Energy
Commission   department  in calculating market
prices under subdivision (c) and establishing other renewables
portfolio standard policies.
  SEC. 303.  Section 399.16 of the Public Utilities Code is amended
to read:
   399.16.  (a) The commission, by rule, may authorize the use of
renewable energy credits to satisfy the requirements of the
renewables portfolio standard established pursuant to this article,
subject to the following conditions:
   (1) Prior to authorizing any renewable energy credit to be used
toward satisfying annual procurement targets, the commission and the
 Energy Commission   department  shall
conclude that the tracking system established pursuant to subdivision
(c) of Section 399.13, is operational, is capable of independently
verifying the electricity generated by an eligible renewable energy
resource and delivered to the retail seller, and can ensure that
renewable energy credits shall not be double counted by any seller of
electricity within the service territory of the Western Electricity
Coordinating Council (WECC).
   (2) A renewable energy credit shall be counted only once for
compliance with the renewables portfolio standard of this state or
any other state, or for verifying retail product claims in this state
or any other state.
   (3) The electricity is delivered to a retail seller, the
Independent System Operator, or a local publicly owned electric
utility.
   (4) All revenues received by an electrical corporation for the
sale of a renewable energy credit shall be credited to the benefit of
ratepayers.
   (5) No renewable energy credits shall be created for electricity
generated pursuant to any electricity purchase contract with a retail
seller or a local publicly owned electric utility executed before
January 1, 2005, unless the contract contains explicit terms and
conditions specifying the ownership or disposition of those credits.
Deliveries under those contracts shall be tracked through the
accounting system described in subdivision (b) of Section 399.13 and
included in the baseline quantity of eligible renewable energy
resources of the purchasing retail seller pursuant to Section 399.15.

   (6)  No   A  renewable energy credits
shall  not  be created for electricity generated under any
electricity purchase contract executed after January 1, 2005,
pursuant to the federal Public Utility Regulatory Policies Act of
1978 (16 U.S.C. Sec. 2601 et seq.). Deliveries under the electricity
purchase contracts shall be tracked through the accounting system
described in subdivision (b) of Section 399.12 and count toward the
renewables portfolio standard obligations of the purchasing retail
seller.
   (7) The commission may limit the quantity of renewable energy
credits that may be procured unbundled from electricity generation by
any retail seller, to meet the requirements of this article.
   (8)  No   An  electrical corporation
shall  not  be obligated to procure renewable energy credits
to satisfy the requirements of this article in the event that the
total costs expended above the applicable market prices for the
procurement of eligible renewable energy resources exceeds the cost
limitation established pursuant to subdivision (d) of Section 399.15.

   (9) Any additional condition that the commission determines is
reasonable.
   (b) The commission shall allow an electrical corporation to
recover the reasonable costs of purchasing renewable energy credits
in rates.
  SEC. 304.  Section 411 is added to the Public Utilities Code, to
read:
   411.  All fees collected by the commission from electrical
corporations and gas corporations to support those functions of the
commission in reviewing and issuing certificates of public
convenience and necessity that are transferred to the California
Energy Commission within the Department of Energy pursuant to
subdivision (b) of Section 1001, shall be identified and transferred
to the Secretary of Energy, at least quarterly, upon the assumption
by the department of those functions.
  SEC. 305.  Section 454.5 of the Public Utilities Code is amended to
read:
   454.5.  (a) The commission shall specify the allocation of
electricity, including quantity, characteristics, and duration of
electricity delivery, that the Department of Water Resources  ,
or its successor,  shall provide under its power purchase
agreements to the customers of each electrical corporation, which
shall be reflected in the electrical corporation's proposed
procurement plan. Each electrical corporation shall file a proposed
procurement plan with the commission not later than 60 days after the
commission specifies the allocation of electricity. The proposed
procurement plan shall specify the date that the electrical
corporation intends to resume procurement of electricity for its
retail customers, consistent with its obligation to serve. After the
commission's adoption of a procurement plan, the commission shall
allow not less than 60 days before the electrical corporation resumes
procurement pursuant to this section.
   (b) An electrical corporation's proposed procurement plan shall
include, but not be limited to, all of the following:
   (1) An assessment of the price risk associated with the electrical
corporation's portfolio, including any utility-retained generation,
existing power purchase and exchange contracts, and proposed
contracts or purchases under which an electrical corporation will
procure electricity, electricity demand reductions, and
electricity-related products and the remaining open position to be
served by spot market transactions.
   (2) A definition of each electricity product, electricity-related
product, and procurement related financial product, including support
and justification for the product type and amount to be procured
under the plan.
   (3) The duration of the plan.
   (4) The duration, timing, and range of quantities of each product
to be procured.
   (5) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services,
including the format and criteria of that procurement process.
   (6) An incentive mechanism, if any incentive mechanism is
proposed, including the type of transactions to be covered by that
mechanism, their respective procurement benchmarks, and other
parameters needed to determine the sharing of risks and benefits.
   (7) The upfront standards and criteria by which the acceptability
and eligibility for rate recovery of a proposed procurement
transaction will be known by the electrical corporation prior to
execution of the transaction. This shall include an expedited
approval process for the commission's review of proposed contracts
and subsequent approval or rejection thereof. The electrical
corporation shall propose alternative procurement choices in the
event a contract is rejected.
   (8) Procedures for updating the procurement plan.
   (9) A showing that the procurement plan will achieve the
following:
   (A) The electrical corporation will, in order to fulfill its unmet
resource needs and in furtherance of Section 701.3, until a 20
percent renewable resources portfolio is achieved, procure renewable
energy resources with the goal of ensuring that at least an
additional 1 percent per year of the electricity sold by the
electrical corporation is generated from renewable energy resources,
provided sufficient funds are made available pursuant to Sections
399.6 and 399.15, to cover the above-market costs for new renewable
energy resources.
   (B) The electrical corporation will create or maintain a
diversified procurement portfolio consisting of both short-term and
long-term electricity and electricity-related and demand reduction
products.
   (C) The electrical corporation will first meet its unmet resource
needs through all available energy efficiency and demand reduction
resources that are cost effective, reliable, and feasible.
   (10) The electrical corporation's risk management policy,
strategy, and practices, including specific measures of price
stability.
   (11) A plan to achieve appropriate increases in diversity of
ownership and diversity of fuel supply of nonutility electrical
generation.
   (12) A mechanism for recovery of reasonable administrative costs
related to procurement in the generation component of rates.
   (c) The commission shall review and accept, modify, or reject each
electrical corporation's procurement plan. The commission's review
shall consider each electrical corporation's individual procurement
situation, and shall give strong consideration to that situation in
determining which one or more of the features set forth in this
subdivision shall apply to that electrical corporation. A procurement
plan approved by the commission shall contain one or more of the
following features, provided that the commission may not approve a
feature or mechanism for an electrical corporation if it finds that
the feature or mechanism would impair the restoration of an
electrical corporation's creditworthiness or would lead to a
deterioration of an electrical corporation's creditworthiness:
   (1) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services. The
commission shall specify the format of that procurement process, as
well as criteria to ensure that the auction process is open and
adequately subscribed. Any purchases made in compliance with the
commission-authorized process shall be recovered in the generation
component of rates.
   (2) An incentive mechanism that establishes a procurement
benchmark or benchmarks and authorizes the electrical corporation to
procure from the market, subject to comparing the electrical
corporation's performance to the commission-authorized benchmark or
benchmarks. The incentive mechanism shall be clear, achievable, and
contain quantifiable objectives and standards. The incentive
mechanism shall contain balanced risk and reward incentives that
limit the risk and reward of an electrical corporation.
   (3) Upfront achievable standards and criteria by which the
acceptability and eligibility for rate recovery of a proposed
procurement transaction will be known by the electrical corporation
prior to the execution of the bilateral contract for the transaction.
The commission shall provide for expedited review and either approve
or reject the individual contracts submitted by the electrical
corporation to ensure compliance with its procurement plan. To the
extent the commission rejects a proposed contract pursuant to this
criteria, the commission shall designate alternative procurement
choices obtained in the procurement plan that will be recoverable for
ratemaking purposes.
   (d) A procurement plan approved by the commission shall accomplish
each of the following objectives:
   (1) Enable the electrical corporation to fulfill its obligation to
serve its customers at just and reasonable rates.
   (2) Eliminate the need for after-the-fact reasonableness reviews
of an electrical corporation's actions in compliance with an approved
procurement plan, including resulting electricity procurement
contracts, practices, and related expenses. However, the commission
may establish a regulatory process to verify and assure that each
contract was administered in accordance with the terms of the
contract, and contract disputes which may arise are reasonably
resolved.
   (3) Ensure timely recovery of prospective procurement costs
incurred pursuant to an approved procurement plan. The commission
shall establish rates based on forecasts of procurement costs adopted
by the commission, actual procurement costs incurred, or combination
thereof, as determined by the commission. The commission shall
establish power procurement balancing accounts to track the
differences between recorded revenues and costs incurred pursuant to
an approved procurement plan. The commission shall review the power
procurement balancing accounts, not less than semiannually, and shall
adjust rates or order refunds, as necessary, to promptly amortize a
balancing account, according to a schedule determined by the
commission. Until January 1, 2006, the commission shall ensure that
any overcollection or undercollection in the power procurement
balancing account does not exceed 5 percent of the electrical
corporation's actual recorded generation revenues for the prior
calendar year excluding revenues collected for the Department of
Water Resources  , or its successor  . The commission shall
determine the schedule for amortizing the overcollection or
undercollection in the balancing account to ensure that the 5 percent
threshold is not exceeded. After January 1, 2006, this adjustment
shall occur when deemed appropriate by the commission consistent with
the objectives of this section.
   (4) Moderate the price risk associated with serving its retail
customers, including the price risk embedded in its long-term supply
contracts, by authorizing an electrical corporation to enter into
financial and other electricity-related product contracts.
   (5) Provide for just and reasonable rates, with an appropriate
balancing of price stability and price level in the electrical
corporation's procurement plan.
   (e) The commission shall provide for the periodic review and
prospective modification of an electrical corporation's procurement
plan.
   (f) The commission may engage an independent consultant or
advisory service to evaluate risk management and strategy. The
reasonable costs of any consultant or advisory service is a
reimbursable expense and eligible for funding pursuant to Section
631.
   (g) The commission shall adopt appropriate procedures to ensure
the confidentiality of any market sensitive information submitted in
an electrical corporation's proposed procurement plan or resulting
from or related to its approved procurement plan, including, but not
limited to, proposed or executed power purchase agreements, data
request responses, or consultant reports, or any combination,
provided that the Office of Ratepayer Advocates and other consumer
groups that are nonmarket participants shall be provided access to
this information under confidentiality procedures authorized by the
commission.
   (h)  Nothing in this   This  section
 alters   does not alter  , 
modifies   modify  , or  amends 
 amend  the commission's oversight of affiliate transactions
under its rules and decisions or the commission's existing authority
to investigate and penalize an electrical corporation's alleged
fraudulent activities, or to disallow costs incurred as a result of
gross incompetence, fraud, abuse, or similar grounds. 
Nothing in this   This  section  expands
  does not expand  ,  modifies 
 modify  , or  limits  limit  the
 State Energy Resources Conservation and Development
Commission's   Department of Energy's  existing
authority and responsibilities as set forth in Sections 25216,
25216.5, and 25323 of the Public Resources Code.
   (i) An electrical corporation that serves less than 500,000
electric retail customers within the state may file with the
commission a request for exemption from this section, which the
commission shall grant upon a showing of good cause.
   (j) (1) Prior to its approval pursuant to Section 851 of any
divestiture of generation assets owned by an electrical corporation
on or after  the date of enactment of the act adding this
section   September 24, 2002  , the commission
shall determine the impact of the proposed divestiture on the
electrical corporation's procurement rates and shall approve a
divestiture only to the extent it finds, taking into account the
effect of the divestiture on procurement rates, that the divestiture
is in the public interest and will result in net ratepayer benefits.
   (2) Any electrical corporation's procurement necessitated as a
result of the divestiture of generation assets on or after 
the effective date of the act adding this subdivision  
September 24, 2002,  shall be subject to the mechanisms and
procedures set forth in this section only if its actual cost is less
than the recent historical cost of the divested generation assets.
   (3) Notwithstanding paragraph (2), the commission may deem
proposed procurement eligible to use the procedures in this section
upon its approval of asset divestiture pursuant to Section 851.
  SEC. 306.  Section 464 of the Public Utilities Code is amended to
read:
   464.  (a) Reasonable expenditures by transmission owners that are
electrical corporations to plan, design, and engineer
reconfiguration, replacement, or expansion of transmission facilities
are in the public interest and are deemed prudent if made for the
purpose of facilitating competition in electric generation markets,
ensuring open access and comparable service, or maintaining or
enhancing reliability, whether or not these expenditures are for
transmission facilities that become operational.
   (b) The commission and the  Electricity Oversight Board
  Office of Energy   Market Oversight in the
Department of Energy  shall jointly facilitate the efforts of
the state's transmission owning electrical corporations to obtain
authorization from the Federal Energy Regulatory Commission to
recover reasonable expenditures made for the purposes stated in
subdivision (a).
   (c)  Nothing in this   This  section
 alters   does not alter  or 
affects   affect  the recovery of the reasonable
costs of other                                             electric
facilities in rates pursuant to the commission's existing ratemaking
authority under this code or pursuant to the Federal Power Act (41
 Stat.   Stats.  1063; 16 U.S.C. Secs.
791a, et seq.). The commission may periodically review and adjust
depreciation schedules and rates authorized for an electric plant
that is under the jurisdiction of the commission and owned by an
electrical corporation and periodically review and adjust
depreciation schedules and rates authorized for a gas plant that is
under the jurisdiction of the commission and owned by a gas
corporation, consistent with this code.
  SEC. 307.  Section 848.1 of the Public Utilities Code is amended to
read:
   848.1.  (a) No later than 120 days after the effective date of
this article, and from time to time thereafter, the recovery
corporation shall apply to the commission for a determination that
some or all of the recovery corporation's recovery costs may be
recovered through fixed recovery amounts, which would be recovery
property under this article, and that any portion of the recovery
corporation's federal and State of California income and franchise
taxes associated with those fixed recovery amounts and not financed
from proceeds of recovery bonds be recovered through fixed recovery
tax amounts. The recovery corporation may request this determination
by the commission in a separate proceeding or in an existing
proceeding, or both. The recovery corporation shall in its
application specify that consumers within its service territory would
benefit from reduced rates on a present value basis through the
issuance of recovery bonds. The commission shall designate fixed
recovery amounts and any associated fixed recovery tax amounts as
recoverable in one or more financing orders if the commission
determines, as part of its findings in connection with the financing
order, that the designation of the fixed recovery amounts and any
associated fixed recovery tax amounts, and the issuance of recovery
bonds in connection with fixed recovery amounts, would reduce the
rates on a present value basis that consumers within the recovery
corporation's service territory would pay if the financing order were
not adopted. Fixed recovery amounts and any associated fixed
recovery tax amounts shall only be imposed on existing and future
consumers in the service territory. Consumers within the service
territory shall continue to pay fixed recovery amounts and any
associated fixed tax recovery amounts until the recovery bonds are
paid in full by the financing entity. Once the recovery bonds have
been paid in full, the payment by consumers of fixed recovery amounts
and fixed recovery tax amounts shall terminate.
   (b) The commission shall establish an effective mechanism that
ensures recovery of recovery costs through fixed recovery amounts and
any associated fixed recovery tax amounts from existing and future
consumers in the service territory,  provided that 
 except  the costs shall not be recoverable from any of the
following:
   (1) New load or incremental load of an existing consumer of the
recovery corporation where the load is being met through a direct
transaction and the transaction does not require the use of
transmission or distribution facilities owned by the recovery
corporation.
   (2) Customer Generation departing load that is exempt from
Department of Water Resources power charges pursuant to the
commission's Decision No. 03-04-030, as modified by Decision No.
03-04-041, and as clarified and affirmed by Decision No. 03-05-039,
except that the load shall pay the costs as a component of and in
proportion to any purchase of electricity delivered by the recovery
corporation under standby or other service made following its
departure.
   (3) The Department of Water Resources,  or its successor for
this purpose, the Department of Energy,  with respect to the
pumping, generation, and transmission facilities and operations of
the State Water Resources Development System, except to the extent
that system facilities receive electric service from the recovery
corporation on or after December 19, 2003, under a commission
approved tariff.
   (4) Retail electric load, continuously served by a local publicly
owned electric utility from January 1, 2000, through the effective
date of the act adding this section.
   (5) Load that thereafter comes to take electric service from a
city where all the following conditions are met:
   (A) The new load is from locations that never received electric
service from the recovery corporation.
   (B) The city owns and operates the local publicly owned electric
utility.
   (C) The local publicly owned electric utility served more than 95
percent of the customers receiving electric service residing within
the city limits prior to December 19, 2003.
   (D) The city annexed the territory in which the load is located on
or after December 19, 2003.
   (E) Following annexation, the city provides all municipal services
to the annexed territory that the city provides to other territory
within the city limits, including electric service.
   (F) The total load exempt from paying fixed recovery amounts and
associated fixed recovery tax amounts pursuant to subparagraphs (A)
through (D), inclusive, does not exceed 50 megawatts, as determined
by the commission, and any load above the 50 megawatt exemption
amount shall be responsible for paying recovery amounts and
associated fixed recovery tax amounts, except as provided in
subdivision (c).
   (c) Except as provided in paragraphs (4) and (5) of subdivision
(b), the commission shall determine the extent to which fixed
recovery amounts and any associated fixed recovery tax amounts are
recoverable from new municipal load, consistent with the commission's
determination in the limited rehearing granted in Decision
03-08-076. The determination of the commission shall be made on the
earlier of the date it adopts a financing order or December 31, 2004.

   (d) Except as provided in paragraphs (4) and (5) of subdivision
(b) and in subdivision (c), the obligation to pay fixed recovery
amounts and any associated fixed recovery tax amounts cannot be
avoided by the formation of a local publicly owned electric utility
on or after December 19, 2003, or by annexation of any portion of the
service territory of the recovery corporation by an existing local
publicly owned electric utility.
   (e) Recovery bonds authorized by the commission's financing orders
may be issued in one or more series on or before December 31, 2006.
   (f) The commission may issue financing orders in accordance with
this article to facilitate the recovery, financing, or refinancing of
recovery costs. A financing order may be adopted only upon the
application of the recovery corporation and shall become effective in
accordance with its terms only after the recovery corporation files
with the commission the recovery corporation's written consent to all
terms and conditions of the financing order. A financing order may
specify how amounts collected from a consumer shall be allocated
between fixed recovery amounts, any associated fixed recovery tax
amounts, and other charges.
   (g) Notwithstanding Section 455.5 or 1708, or any other provision
of law, except as otherwise provided in Section 848.7 or in this
subdivision with respect to recovery property that has been made the
basis for the issuance of recovery bonds and with respect to any
associated fixed recovery tax amounts, the financing order, the fixed
recovery amounts and any associated fixed recovery tax amounts shall
be irrevocable, and the commission shall not have authority either
by rescinding, altering, or amending the financing order or
otherwise, to revalue or revise for ratemaking purposes, the recovery
costs or the costs of recovering, financing, or refinancing the
recovery costs, determine that the fixed recovery amounts, any
associated fixed recovery tax amounts or rates are unjust or
unreasonable, or in any way reduce or impair the value of recovery
property or of the right to receive any associated fixed recovery tax
amounts either directly or indirectly by taking fixed recovery
amounts or any associated fixed recovery tax amounts into account
when setting other rates for the recovery corporation or when setting
charges for the Department of Water Resources  , or its
successor for this purpose, the Department of Energy  ; nor
shall the amount of revenues arising with respect thereto be subject
to reduction, impairment, postponement, or termination. Except as
otherwise provided in this subdivision, the State of California does
hereby pledge and agree with the recovery corporation, owners of
recovery property, and holders of recovery bonds that the state shall
neither limit nor alter the fixed recovery amounts, any associated
fixed recovery tax amounts, recovery property, financing orders, or
any rights thereunder until the recovery bonds, together with the
interest thereon, are fully paid and discharged, and any associated
fixed recovery tax amounts have been satisfied or, in the
alternative, have been refinanced through an additional issue of
recovery bonds  ; provided nothing contained in 
 .   However,  this section  shall
  does not  preclude  the  
this  limitation or alteration if and when adequate provision
 shall be   is  made by law for the
protection of the recovery corporation, owners, and holders. The
financing entity is authorized to include this pledge and undertaking
for the state in these recovery bonds. Notwithstanding any other
provision of this section, the commission shall approve adjustments
to the fixed recovery amounts and any associated fixed recovery tax
amounts as may be necessary to ensure timely recovery of all recovery
costs that are the subject of the pertinent financing order, and the
costs of capital associated with the recovery, financing, or
refinancing thereof, including servicing and retiring the recovery
bonds contemplated by the financing order. When setting other rates
for the recovery corporation,  nothing in  this
subdivision  shall   does not  prevent the
commission from taking into account either of the following:
   (1) Any collection of fixed recovery amounts in excess of amounts
actually required to pay recovery costs financed or refinanced by
recovery bonds.
   (2) Any collection of fixed recovery tax amounts in excess of
amounts actually required to pay federal and State of California
income and franchise taxes associated with fixed recovery amounts;
provided that this would not result in a recharacterization of the
tax, accounting, and other intended characteristics of the financing,
including, but not limited to, either of the following:
   (A) Treating the recovery bonds as debt of the recovery
corporation or its affiliates for federal income tax purposes.
   (B) Treating the transfer of the recovery property by the recovery
corporation as a true sale for bankruptcy purposes.
   (h) (1) Financing orders issued under this article do not
constitute a debt or liability of the state or of any political
subdivision thereof, and do not constitute a pledge of the full faith
and credit of the state or any of its political subdivisions, but
are payable solely from the funds provided therefor under this
article and shall be consistent with Sections 1 and 18 of Article XVI
of the California Constitution. This subdivision shall in no way
preclude bond guarantees or enhancements pursuant to this article.
All recovery bonds shall contain on the face thereof a statement to
the following effect: "Neither the full faith and credit nor the
taxing power of the State of California is pledged to the payment of
the principal of, or interest on, this bond."
   (2) The issuance of recovery bonds under this article shall not
directly, indirectly, or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation therefor or to make any appropriation for their payment.
   (i) The commission shall establish procedures for the expeditious
processing of applications for financing orders, including the
approval or disapproval thereof within 120 days of the recovery
corporation making application therefor. The commission shall provide
in any financing order for a procedure for the expeditious approval
by the commission of periodic adjustments to the fixed recovery
amounts and any associated fixed recovery tax amounts that are the
subject of the pertinent financing order, as required by subdivision
(g). The procedure shall require the commission to determine whether
the adjustments are required on each anniversary of the issuance of
the financing order, and at the additional intervals as may be
provided for in the financing order, and for the adjustments, if
required, to be approved within 90 days of each anniversary of the
issuance of the financing order, or of each additional interval
provided for in the financing order.
   (j) Fixed recovery amounts are recovery property when, and to the
extent that, a financing order authorizing the fixed recovery amounts
has become effective in accordance with this article, and the
recovery property shall thereafter continuously exist as property for
all purposes with all of the rights and privileges of this article
for the period and to the extent provided in the financing order, but
in any event until the recovery bonds are paid in full, including
all principal, interest, premium, costs, and arrearages thereon.
   (k) This article and any financing order made pursuant to this
article do not amend, reduce, modify, or otherwise affect the right
of the Department of Water Resources  , or its successor for this
purpose, the Department of Energy,  to recover its revenue
requirements and to receive the charges that it is to recover and
receive pursuant to Division 27 (commencing with Section 80000) of
the Water Code, or pursuant to any agreement entered into by the
commission and the  Department of Water Resources 
 department  pursuant to that division.
  SEC. 308.  Section 1001 of the Public Utilities Code is amended to
read:
   1001.   No   (a)     (1)
    A  railroad corporation whose railroad is
operated primarily by electric energy  ,   or a
 street railroad corporation, gas corporation, electrical
corporation, telegraph corporation, telephone corporation, water
corporation, or sewer system corporation shall  not  begin
the construction of a street railroad, or of a line, plant, or
system, or of any extension thereof, without having first obtained
from the commission a certificate that the present or future public
convenience and necessity require or will require  such
  that  construction. 
   This 
    (2)     This  article shall not be
construed to require any  such  corporation 
described in paragraph (1)  to secure  such 
 a  certificate for an extension within any city or city and
county within which it has theretofore lawfully commenced
operations, or for an extension into territory either within or
without a city or city and county contiguous to its street railroad,
or line, plant, or system, and not theretofore served by a public
utility of like character, or for an extension within or to territory
already served by it, necessary in the ordinary course of its
business. If any public utility, in constructing or extending its
line, plant, or system, interferes or is about to interfere with the
operation of the line, plant, or system of any other public utility
or of the water system of a public agency, already constructed, the
commission, on complaint of the public utility or public agency
claiming to be injuriously affected, may, after hearing, make
 such   an  order and prescribe 
such  terms and conditions for the location of the lines,
plants, or systems affected as to it may seem just and reasonable.

   (b) Notwithstanding subdivision (a) or any other provision of law,
all responsibilities of the commission with respect to the
certification of an electric transmission line, plant, or system, or
any extension thereof, carrying electricity to the interconnected
grid, or that is part of the interconnected grid, but not including
electric distribution facilities, are hereby transferred to the
exclusive jurisdiction of the Secretary of Energy, in consultation
with the California Energy Commission. All applications for
certification regarding a line, facility, plant, or system described
in this subdivision shall be heard and decided by the California
Energy Commission within the department. A decision of the department
or the California Energy Commission with respect to matters
transferred pursuant to this subdivision shall be conclusive as to
all matters determined.  
   (c) For the purposes of this section, an electric line, plant, or
system, or extension thereof, shall be considered "electric
transmission" for either of the following:  
   (1) It has a maximum rated voltage of 200 kilovolts or greater.
 
   (2) It has a maximum rated voltage of 100 kilovolts or greater and
certification is sought following inclusion of that facility as an
element of a final transmission expansion plan for the Independent
System Operator.  
   (d) In hearing and deciding an application pursuant to this
section, the California Energy Commission shall consider and make any
necessary findings on all factors required by Sections 1001 to
1005.5, inclusive, and any other provision of law, including the
anticipated effects of any proposed project on consumer rates, on the
environment, and on the public benefits expected to result from any
project.  
   (e) The Department of Energy, in consultation with the Public
Utilities Commission, shall promptly establish a mechanism for the
Public Utilities Commission to timely advise the department regarding
the retail rate impacts of the decision made by the California
Energy Commission and the department. 
  SEC. 309.  Section 1731 of the Public Utilities Code is amended to
read:
   1731.  (a) The commission shall set an effective date when issuing
an order or decision. The commission may set the effective date of
an order or decision prior to the date of issuance of the order or
decision.
   (b) (1) After any order or decision has been made by the
commission, any party to the action or proceeding, or any stockholder
or bondholder or other party pecuniarily interested in the public
utility affected, may apply for a rehearing in respect to any matters
determined in the action or proceeding and specified in the
application for rehearing. The commission may grant and hold a
rehearing on those matters, if in its judgment sufficient reason is
made to appear. No cause of action arising out of any order or
decision of the commission shall accrue in any court to any
corporation or person unless the corporation or person has filed an
application to the commission for a rehearing within 30 days after
the date of issuance or within 10 days after the date of issuance in
the case of an order issued pursuant to either Article 5 (commencing
with Section 816) or Article 6 (commencing with Section 851) of
Chapter 4 relating to security transactions and the transfer or
encumbrance of utility property.
   (2) The commission shall notify the parties of the issuance of an
order or decision by either mail or electronic transmission.
Notification of the parties may be accomplished by one of the
following methods:
   (A) Mailing the order or decision to the parties to the action or
proceeding.
   (B) If a party to an action or proceeding consents in advance to
receive notice of any order or decision related to the action or
proceeding by electronic mail address, notification of the party may
be accomplished by transmitting an electronic copy of the official
version of the order or decision to the party if the party has
provided an electronic mail address to the commission.
   (C) If a party to an action or proceeding consents in advance to
receive notice of any order or decision related to the action or
proceeding by electronic mail address, notification of the party may
be accomplished by transmitting a link to an Internet Web site where
the official version of the order or decision is readily available to
the party if the party has provided an electronic mail address to
the commission.
   (3) For the purposes of this article, "date of issuance" means the
mailing or electronic transmission date that is stamped on the
official version of the order or decision
   (c) No cause of action arising out of any order or decision of the
commission construing, applying, or implementing the provisions of
Chapter 4 of the Statutes of the 2001-02 First Extraordinary Session
that (1) relates to the determination or implementation of the
department's revenue requirements, or the establishment or
implementation of bond or power charges necessary to recover those
revenue requirements, or (2) in the sole determination of the
Department of Water Resources  , or its successor for this
purpose, the Department of Energy  , the expedited review of
order or decision of the commission is necessary or desirable, for
the maintenance of any credit ratings on any bonds or notes of the
department issued pursuant to Division 27 (commencing with Section
80000) of the Water Code or for the department to meet its
obligations with respect to any bonds or notes pursuant to that
division, shall accrue in any court to any corporation or person
unless the corporation or person has filed an application with the
commission for a rehearing within 10 days after the date of issuance
of the order or decision. The Department of Water Resources  , or
its successor for this purpose,  shall notify the commission of
any determination pursuant to paragraph (2) of this subdivision
prior to the issuance by the commission of any order or decision
construing, applying, or implementing the provisions of Chapter 4 of
the Statutes of the 2001-02 First Extraordinary Session. The
commission shall issue its decision and order on rehearing within 20
days after the filing of the application.
  SEC. 310.  Section 1768 of the Public Utilities Code is amended to
read:
   1768.  The following procedures shall apply to judicial review of
an order or decision of the commission interpreting, implementing, or
applying the provisions of Chapter 4 of the Statutes of the 2001-02
First Extraordinary Session that (1) relates to the determination or
implementation of the revenue requirements of the Department of Water
Resources  , or its successor for this purpose, the Department
of Energy,  or the establishment or implementation of bond or
power charges necessary to recover those revenue requirements, or (2)
in the sole determination of the department, the expedited review of
an order or decision of the commission is necessary or desirable,
for the maintenance of any credit ratings on any bonds or notes of
the department issued pursuant to Division 27 (commencing with
Section 80000) of the Water Code or for the department to meet its
obligations with respect to any bonds or notes pursuant to that
division:
   (a) Within 30 days after the commission issues its order or
decision denying the application for a rehearing, or, if the
application is granted, then within 30 days after the commission
issues its decision on rehearing, any aggrieved party may petition
for a writ of review in the California Supreme Court for the purpose
of determining the lawfulness of the original order or decision or of
the order or decision on rehearing. If the writ issues, it shall be
made returnable at a time and place specified by court order and
shall direct the commission to certify its record in the case to the
court within the time specified. No order of the commission
interpreting, implementing, or applying the provisions of Chapter 4
of the Statutes of the 2001-02 First Extraordinary Session shall be
subject to review in the courts of appeal.
   (b) The petition for review shall be served upon the executive
director and the general counsel of the commission either personally
or by service at the office of the commission.
   (c) For purposes of this section, the issuance of a decision or
the granting of an application shall be construed to have occurred on
the date of issuance, as defined in paragraph (4) of subdivision (b)
of Section 1731.
   (d) All actions and proceedings under this section and all actions
or proceedings to which the commission or the people of the State of
California are parties in which any question arises under this
section, or under or concerning any order or decision of the
commission under this section, shall be preferred over, and shall be
heard and determined in preference to, all other civil business
except election causes, irrespective of position on the calendar.
   (e) The provisions of this article apply to actions under this
section to the extent that those provisions are not in conflict with
this section.
  SEC. 311.  Section 1822 of the Public Utilities Code is amended to
read:
   1822.  (a) Any computer model that is the basis for any testimony
or exhibit in a hearing or proceeding before the commission shall be
available to, and subject to verification by, the commission and
parties to the hearing or proceedings to the extent necessary for
cross-examination or rebuttal, subject to applicable rules of
evidence, except that verification is not required for any
electricity demand model or forecast prepared by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  pursuant to Section 25309 or 25402.1
of the Public Resources Code and approved and adopted after a hearing
during which testimony was offered subject to cross-examination. The
commission shall afford each of these electricity demand models or
forecasts the evidentiary weight it determines appropriate. 
Nothing in this   This  subdivision 
requires   does not require  the  State
Energy Resources Conservation and Development Commission 
 department  to approve or adopt any electricity demand
model or forecast.
   (b)  Any testimony   Testimony 
presented in a hearing or proceeding before the commission that is
based in whole, or in part, on a computer model shall include a
listing of all the equations and assumptions built into the model.
   (c)  Any data base   A database  that is
used for any testimony or exhibit in a hearing or proceeding before
the commission shall be reasonably accessible to the commission
                                     staff and parties to the hearing
or proceeding to the extent necessary for cross-examination or
rebuttal, subject to applicable rules of evidence, as applied in
commission proceedings.
   (d) The commission shall adopt rules and procedures to meet the
requirements specified in subdivisions (a), (b), and (c). These rules
shall include procedural safeguards that protect  data bases
  databases  and models not owned by the public
utility.
   (e) The commission shall establish appropriate procedures for
determining the appropriate level of compensation for a party's
access.
   (f) Each party shall have access to the computer programs and
models of each other party to the extent provided by Section 1822.
The commission shall not require a utility to provide a remote
terminal or other direct physical link to the computer systems of a
utility to a third party.
   (g) The commission shall verify, validate, and review the computer
models of any electric corporation that are used for the purpose of
planning, operating, constructing, or maintaining the corporation's
electricity transmission system, and that are the basis for testimony
and exhibits in hearings and proceedings before the commission.
   (h) The transmission computer models shall be available to, and
subject to verification by, each party to a commission proceeding in
accordance with subdivision (a) of Section 1822, and regulations
adopted pursuant to subdivision (d) of Section 1822.
  SEC. 312.  Section 2774.6 of the Public Utilities Code is amended
to read:
   2774.6.  The commission, in consultation with the  State
Energy Resources Conservation and Development Commission, 
 Department of Energy,  shall develop a program for
residential and commercial customer air-conditioning load control, as
an element of each electrical corporation's tariffed service
offerings paid for with electric rates. The goal of the program shall
be to contribute to the adequacy of electricity supply and to help
customers reduce their electric bills in a cost-effective manner. The
program may include peak load reduction programs for residential and
commercial air-conditioning systems, if the commission determines
that the inclusion would be  cost-effective  
cost effective  .
  SEC. 313.  Section 2826.5 of the Public Utilities Code is amended
to read:
   2826.5.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Benefiting account" means an electricity account, or more
than one account, mutually agreed upon by Pacific Gas and Electric
Company and the City of Davis.
   (2) "Bill credit" means credits calculated based upon the
electricity generation component of the rate schedule applicable to a
benefiting account, as applied to the net metered quantities of
electricity.
   (3) "PVUSA" means the photovoltaic electricity generation facility
selected by the City of Davis, located at 24662 County Road, Davis,
California, with a rated peak electricity generation capacity of 600
kilowatts, and as it may be expanded, not to exceed one megawatt of
peak generation capacity.
   (4) "Net metered" means the electricity output from the PVUSA.
   (5) "Environmental attributes" associated with the PVUSA include,
but are not limited to, the credits, benefits, emissions reductions,
environmental air quality credits, and emissions reduction credits,
offsets, and allowances, however entitled resulting from the
avoidance of the emission of any gas, chemical, or other substance
attributable to the PVUSA.
   (b) The City of Davis may elect to designate a benefiting account,
or more than one account, to receive bill credit for the electricity
generated by the PVUSA, if all of the following conditions are met:
   (1) A benefiting account receives service under a time-of-use rate
schedule.
   (2) The electricity output of the PVUSA is metered for time of use
to allow allocation of each bill credit to correspond to the
time-of-use period of a benefiting account.
   (3) All costs associated with the metering requirements of
paragraphs (1) and (2) are the responsibility of the City of Davis.
   (4) All electricity delivered to the electrical grid by the PVUSA
is the property of Pacific Gas and Electric Company.
   (5) PVUSA does not sell electricity delivered to the electrical
grid to a third party.
   (6) The right, title, and interest in the environmental attributes
associated with the electricity delivered to the electrical grid by
the PVUSA are the property of Nuon Renewable Ventures USA, LLC.
   (c) A benefiting account shall be billed on a monthly basis, as
follows:
   (1) For all electricity usage, the rate schedule applicable to the
benefiting account, including any surcharge, exit fee, or other cost
recovery mechanism, as determined by the commission, to reimburse
the Department of Water Resources  , or its successor for this
purpose, the Department of Energy,  for purchases of
electricity, pursuant to Division 27 (commencing with Section 80000)
of the Water Code.
   (2) The rate schedule for the benefiting account shall also
provide credit for the generation component of the time-of-use rates
for the electricity generated by the PVUSA that is delivered to the
electrical grid. The generation component credited to the benefiting
account may not include the surcharge, exit fee, or other cost
recovery mechanism, as determined by the commission, to reimburse the
Department of Water Resources  , or its successor for this
purpose, the Department of Energy,  for purchases of
electricity, pursuant to Division 27 (commencing with Section 80000)
of the Water Code.
   (3) If in any billing cycle, the charge pursuant to paragraph (1)
for electricity usage exceeds the billing credit pursuant to
paragraph (2), the City of Davis shall be charged for the difference.

   (4) If in any billing cycle, the billing credit pursuant to
paragraph (2), exceeds the charge for electricity usage pursuant to
paragraph (1), the difference shall be carried forward as a credit to
the next billing cycle.
   (5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a calendar year, any remaining credit resulting from
the application of this section shall be reset to zero.
   (d) Not more frequently that once per year, and upon providing
Pacific Gas and Electric Company with a minimum of 60 days notice,
the City of Davis may elect to change a benefiting account. Any
credit resulting from the application of this section earned prior to
the change in a benefiting account that has not been used as of the
date of the change in the benefit account, shall be applied, and may
only be applied, to a benefiting account as changed.
   (e) Pacific Gas and Electric Company shall file an advice letter
with the Public Utilities Commission, that complies with this
section, not later than 10 days after the effective date of this
section, proposing a rate tariff for a benefiting account. The
commission, within 30 days of the date of filing, shall approve the
proposed tariff, or specify conforming changes to be made by Pacific
Gas and Electric Company to be filed in a new advice letter.
   (f) The City of Davis may terminate its election pursuant to
subdivision (b), upon providing Pacific Gas and Electric Company with
a minimum of 60 days notice. Should the City of Davis sell its
interest in the PVUSA, or sell the electricity generated by the
PVUSA, in a manner other than required by this section, upon the date
of either event, and the earliest date if both events occur, no
further bill credit pursuant to paragraph (2) of subdivision (b) may
be earned. Only credit earned prior to that date shall be made to a
benefiting account.
   (g) The Legislature finds and declares that credit for a
benefiting account for the electricity output from the PVUSA are in
the public interest in order to value the production of this unique,
wholly renewable resource electricity generation facility located in,
and owned in part by, the City of Davis. Because of the unique
circumstances applicable only to the PVUSA a statute of general
applicability cannot be enacted within the meaning of subdivision (b)
of Section 16 of Article IV of the California Constitution.
Therefore, this special statute is necessary.
  SEC. 314.  Section 2827 of the Public Utilities Code is amended to
read:
   2827.  (a) The Legislature finds and declares that a program to
provide net energy metering, co-energy metering, and wind energy
co-metering for eligible customer-generators is one way to encourage
substantial private investment in renewable energy resources,
stimulate in-state economic growth, reduce demand for electricity
during peak consumption periods, help stabilize California's energy
supply infrastructure, enhance the continued diversification of
California's energy resource mix, and reduce interconnection and
administrative costs for electricity suppliers.
   (b) As used in this section, the following terms have the
following meanings:
   (1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
   (2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
   (3) "Electric distribution utility or cooperative" means an
electrical corporation, a local publicly owned electric utility, or
an electrical cooperative, or any other entity, except an electric
service provider, that offers electrical service. This section
 shall   does  not apply to a local
publicly owned electric utility that serves more than 750,000
customers and that also conveys water to its customers.
   (4) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electricity
distribution utility or cooperative, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than one megawatt that is located on the
customer's owned, leased, or rented premises, is interconnected and
operates in parallel with the electric grid, and is intended
primarily to offset part or all of the customer's own electrical
requirements.
   (5) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (h). An eligible customer-generator who already owns an
existing solar or wind turbine electrical generating facility, or a
hybrid system of both, is eligible to receive net energy metering
service in accordance with this section.
   (6) "Ratemaking authority" means, for an electrical corporation,
electrical cooperative, or electric service provider, the commission,
and for a local publicly owned electric utility, the local elected
body responsible for setting the rates of the local publicly owned
utility.
   (7) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period is as described
in subdivision (h). Wind energy co-metering shall be accomplished
pursuant to Section 2827.8.
   (c) (1) Every electricity distribution utility or cooperative
shall develop a standard contract or tariff providing for net energy
metering, and shall make this standard contract or tariff available
to eligible customer-generators, upon request, on a
first-come-first-served basis until the time that the total rated
generating capacity used by eligible customer-generators exceeds 2.5
percent of the electricity distribution utility or cooperative's
aggregate customer peak demand. Net energy metering shall be
accomplished using a single meter capable of registering the flow of
electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the customer-generator, at the expense of the
electricity distribution utility or cooperative, and the additional
metering shall be used only to provide the information necessary to
accurately bill or credit the customer-generator pursuant to
subdivision (h), or to collect solar or wind electric generating
system performance information for research purposes. If the existing
electrical meter of an eligible customer-generator is not capable of
measuring the flow of electricity in two directions, the
customer-generator shall be responsible for all expenses involved in
purchasing and installing a meter that is able to measure electricity
flow in two directions. If an additional meter or meters are
installed, the net energy metering calculation shall yield a result
identical to that of a single meter.
   (2) (A) On an annual basis, beginning in 2003, every electricity
distribution utility or cooperative shall make available to the
ratemaking authority information on the total rated generating
capacity used by eligible customer-generators that are customers of
that provider in the provider's service area.
   (B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electric corporation,
local publicly owned electric utility, or electrical cooperative, in
which the customer has net energy metering.
   (C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electricity
distribution utilities and cooperatives, and for using that
information to determine when, pursuant to paragraphs (1) and (3), an
electricity distribution utility or cooperative is not obligated to
provide net energy metering to additional customer-generators in its
service area.
   (3) An electricity distribution utility or cooperative is not
obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electricity
distribution utilities or cooperatives in that service area
furnishing net energy metering to eligible customer-generators
exceeds 2.5 percent of the aggregate customer peak demand of those
electricity distribution utilities or cooperatives.
   (4) By January 1, 2010, the commission, in consultation with the
Energy Commission, shall submit a report to the Governor and the
Legislature on the costs and benefits of net energy metering, wind
energy co-metering, and co-energy metering to participating customers
and nonparticipating customers and with options to replace the
economic costs and benefits of net energy metering, wind energy
co-metering, and co-energy metering with a mechanism that more
equitably balances the interests of participating and
nonparticipating customers, and that incorporates the findings of the
report on economic and environmental costs and benefits of net
metering required by subdivision (n).
   (d) Every electricity distribution utility or cooperative shall
make all necessary forms and contracts for net energy metering
service available for download from the Internet.
   (e) (1) Every electricity distribution utility or cooperative
shall ensure that requests for establishment of net energy metering
are processed in a time period not exceeding that for similarly
situated customers requesting new electric service, but not to exceed
30 working days from the date it receives a completed application
form for net energy metering service, including a signed
interconnection agreement from an eligible customer-generator and the
electric inspection clearance from the governmental authority having
jurisdiction.
   (2) Every electricity distribution utility or cooperative shall
ensure that requests for an interconnection agreement from an
eligible customer-generator are processed in a time period not to
exceed 30 working days from the date it receives a completed
application form from the eligible customer-generator for an
interconnection agreement.
   (3) If an electricity distribution utility or cooperative is
unable to process a request within the allowable timeframe pursuant
to paragraph (1) or (2), it shall notify the eligible
customer-generator and the ratemaking authority of the reason for its
inability to process the request and the expected completion date.
   (f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365 with an electric
service provider that does not provide distribution service for the
direct transactions, the electricity distribution utility or
cooperative that provides distribution service for an eligible
customer-generator is not obligated to provide net energy metering to
the customer.
   (2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
service provider, and the customer is an eligible customer-generator,
the electricity distribution utility or cooperative that provides
distribution service for the direct transactions may recover from the
customer's electric service provider the incremental costs of
metering and billing service related to net energy metering in an
amount set by the ratemaking authority.
   (g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract or
tariff shall be identical, with respect to rate structure, all
retail rate components, and any monthly charges, to the contract or
tariff to which the same customer would be assigned if the customer
did not use an eligible solar or wind electrical generating facility,
except that eligible customer-generators shall not be assessed
standby charges on the electrical generating capacity or the
kilowatthour production of an eligible solar or wind electrical
generating facility. The charges for all retail rate components for
eligible customer-generators shall be based exclusively on the
customer-generator's net kilowatthour consumption over a 12-month
period, without regard to the customer-generator's choice as to whom
it purchases electricity that is not self-generated. Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or any other charge that
would increase an eligible customer-generator's costs beyond those of
other customers who are not eligible customer-generators in the rate
class to which the eligible customer-generator would otherwise be
assigned if the customer did not own, lease, rent, or otherwise
operate an eligible solar or wind electrical generating facility are
contrary to the intent of this section, and shall not form a part of
net energy metering contracts or tariffs.
   (h) For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period. The following rules shall apply to the annualized
net metering calculation:
   (1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electricity distribution utility
or cooperative, and at each anniversary date thereafter, be billed
for electricity used during that 12-month period. The electricity
distribution utility or cooperative shall determine if the eligible
residential or small commercial customer-generator was a net consumer
or a net producer of electricity during that period.
   (2) At the end of each 12-month period, where the electricity
supplied during the period by the electricity distribution utility or
cooperative exceeds the electricity generated by the eligible
residential or small commercial customer-generator during that same
period, the eligible residential or small commercial
customer-generator is a net electricity consumer and the electricity
distribution utility or cooperative shall be owed compensation for
the eligible customer-generator's net kilowatthour consumption over
that 12-month period. The compensation owed for the eligible
residential or small commercial customer-generator's consumption
shall be calculated as follows:
   (A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates
or charges, any net monthly consumption of electricity shall be
calculated according to the terms of the contract or tariff to which
the same customer would be assigned to, or be eligible for, if the
customer was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electricity distribution utility or cooperative
would charge for the baseline quantity of electricity during that
billing period, and if the number of kilowatthours generated exceeds
the baseline quantity, the excess shall be valued at the same price
per kilowatthour as the electricity distribution utility or
cooperative would charge for electricity over the baseline quantity
during that billing period.
   (B) For all eligible customer-generators taking service under
contracts or tariffs employing "time-of-use" rates or charges, any
net monthly consumption of electricity shall be calculated according
to the terms of the contract or tariff to which the same customer
would be assigned to, or be eligible for, if the customer was not an
eligible customer-generator. When those same customer-generators are
net generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electricity distribution utility or cooperative
would charge for retail kilowatthour sales during that same
"time-of-use" period. If the eligible customer-generator's
"time-of-use" electrical meter is unable to measure the flow of
electricity in two directions, subparagraph (A) of paragraph (1) of
subdivision (c) shall apply.
   (C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electricity distribution utility or cooperative
for net consumption of electricity or credits owed to the eligible
customer-generator for net generation of electricity shall be carried
forward as a monetary value until the end of each 12-month period.
For all eligible commercial, industrial, and agricultural
customer-generators, the net balance of moneys owed shall be paid in
accordance with the electricity distribution utility or cooperative's
normal billing cycle, except that if the eligible commercial,
industrial, or agricultural customer-generator is a net electricity
producer over a normal billing cycle, any excess kilowatthours
generated during the billing cycle shall be carried over to the
following billing period as a monetary value, calculated according to
the procedures set forth in this section, and appear as a credit on
the eligible customer-generator's account, until the end of the
annual period when paragraph (3) shall apply.
   (3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electricity
distribution utility or cooperative during that same period, the
eligible customer-generator is a net electricity producer and the
electricity distribution utility or cooperative shall retain any
excess kilowatthours generated during the prior 12-month period. The
eligible customer-generator shall not be owed any compensation for
those excess kilowatthours unless the electricity distribution
utility or cooperative enters into a purchase agreement with the
eligible customer-generator for those excess kilowatthours.
   (4) The electricity distribution utility or cooperative shall
provide every eligible residential or small commercial
customer-generator with net electricity consumption information with
each regular bill. That information shall include the current
monetary balance owed the electricity distribution utility or
cooperative for net electricity consumed, or the current amount of
excess electricity produced, since the last 12-month period ended.
Notwithstanding this subdivision, an electricity distribution utility
or cooperative shall permit that customer to pay monthly for net
energy consumed.
   (5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electricity distribution utility or cooperative, the electricity
distribution utility or cooperative shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
   (6) If an electric service provider or electricity distribution
utility or cooperative providing net energy metering to a residential
or small commercial customer-generator ceases providing that
electric service to that customer during any 12-month period, and the
customer-generator enters into a new net energy metering contract or
tariff with a new electric service provider or electricity
distribution utility or cooperative, the 12-month period, with
respect to that new electric service provider or electricity
distribution utility or cooperative, shall commence on the date on
which the new electric service provider or electricity distribution
utility or cooperative first supplies electric service to the
customer-generator.
   (i) Notwithstanding any other provisions of this section, the
following provisions shall apply to an eligible customer-generator
with a capacity of more than 10 kilowatts, but not exceeding one
megawatt, that receives electric service from a local publicly owned
electric utility that has elected to utilize
                           a co-energy metering program unless the
local publicly owned electric utility chooses to provide service for
eligible customer-generators with a capacity of more than 10
kilowatts in accordance with subdivisions (g) and (h):
   (1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
"time-of-use" measurements of electricity flow, and the customer
shall take service on a time-of-use rate schedule. If the existing
meter of the eligible customer-generator is not a time-of-use meter
or is not capable of measuring total flow of energy in both
directions, the eligible customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
both time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a government agency or an electricity distribution
utility or cooperative to reduce its costs for purchasing and
installing a time-of-use meter.
   (2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use an eligible solar or wind electrical generating
facility. The generation of electricity provided to the local
publicly owned electric utility shall result in a credit to the
eligible customer-generator and shall be priced in accordance with
the generation component, established under the applicable structure
to which the customer would be assigned if the customer did not use
an eligible solar or wind electrical generating facility.
   (3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a
kilowatthour credit consistent with the provisions of any applicable
contract or tariff, including any differences attributable to the
time of generation of the electricity. At the end of each 12-month
period, the local publicly owned electric utility may reduce any net
credit due to the eligible customer-generator to zero.
   (j) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, including
Underwriters Laboratories and, where applicable, rules of the
commission regarding safety and reliability. A customer-generator
whose solar or wind turbine electrical generating system, or a hybrid
system of both, meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
   (k) If the commission determines that there are cost or revenue
obligations for an electric corporation, as defined in Section 218,
that may not be recovered from customer-generators acting pursuant to
this section, those obligations shall remain within the customer
class from which any shortfall occurred and may not be shifted to any
other customer class. Net energy metering and co-energy metering
customers shall not be exempt from the public goods charges imposed
pursuant to Article 7 (commencing with Section 381), Article 8
(commencing with Section 385), or Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1. In its report to the Legislature, the
commission shall examine different methods to ensure that the public
goods charges remain nonbypassable.
   () A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources  , or its successor for this purpose, the Department of
Energy,  for all charges that would otherwise be imposed on the
customer by the commission to recover bond-related costs pursuant to
an agreement between the commission and the  Department of
Water Resources   department  pursuant to Section
80110 of the Water Code, as well as the costs of the department equal
to the share of the department's estimated net unavoidable power
purchase contract costs attributable to the customer. The commission
shall incorporate the determination into an existing proceeding
before the commission, and shall ensure that the charges are
nonbypassable. Until the commission has made a determination
regarding the nonbypassable charges, net energy metering, co-energy
metering, and wind energy co-metering shall continue under the same
rules, procedures, terms, and conditions as were applicable on
December 31, 2002.
   (m) In implementing the requirements of subdivisions (k) and (), a
customer-generator shall not be required to replace its existing
meter except as set forth in subparagraph (A) of paragraph (1) of
subdivision (c), nor shall the electricity distribution utility or
cooperative require additional measurement of usage beyond that which
is necessary for customers in the same rate class as the eligible
customer-generator.
   (n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, co-energy metering, and wind energy
co-metering projects undertaken pursuant to this section as
sustainable building methods or distributive energy technologies for
purposes of evaluating low-income housing projects.
  SEC. 315.  Section 3302 of the Public Utilities Code is amended to
read:
   3302.  As used in this division, unless the context otherwise
requires, the following terms have the following meanings:
   (a) "Act" means the California Consumer Power and Conservation
Financing Authority Act.
   (b) "Authority" means the California Consumer Power and
Conservation Financing Authority established pursuant to Section 3320
and any board, commission, department, or officer succeeding to the
functions thereof, or to whom the powers conferred upon the authority
by this division shall be given by law.  As of January 1, 2010,
the Department of Energy shall succeed to the function of the
authority, and   thereafter, "authority" means the
Department of Energy. 
   (c)  "Board" means the Board of Directors of the
California Consumer Power and Conservation Financing Authority
  (Reserved)  .
   (d) "Bond purchase agreement" means a contractual agreement
executed between the authority and an underwriter or underwriters
and, where appropriate, a participating party, whereby the authority
agrees to sell bonds issued pursuant to this division.
   (e) "Bonds" means bonds, including structured, senior, and
subordinated bonds or other securities; loans; notes, including bond
revenue or grant anticipation notes; certificates of indebtedness;
commercial paper; floating rate and variable maturity securities; and
any other evidences of indebtedness or ownership, including
certificates of participation or beneficial interest, asset backed
certificates, or lease-purchase or installment purchase agreements,
whether taxable or excludable from gross income for state and federal
income taxation purposes.
   (f) "Cost," as applied to a program, project, or portion thereof
financed under this division, means all or any part of the cost of
construction, improvement, repair, reconstruction, renovation, and
acquisition of all lands, structures, improved or unimproved real or
personal property, rights, rights-of-way, franchises, licenses,
easements, and interests acquired or used for a project; the cost of
demolishing or removing or relocating any buildings or structures on
land so acquired, including the cost of acquiring any lands to which
the buildings or structures may be moved; the cost of all machinery
and equipment; financing charges; the costs of any environmental
mitigation; the costs of issuance of bonds or other indebtedness;
interest prior to, during, and for a period after, completion of the
project, as determined by the authority; provisions for working
capital; reserves for principal and interest; reserves for reduction
of costs for loans or other financial assistance; reserves for
maintenance, extension, enlargements, additions, replacements,
renovations, and improvements; and the cost of architectural,
engineering, financial, appraisal, and legal services, plans,
specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
any project, enterprise, or program or incidental to the completion
or financing of any project or program. 
   (g) "Department" means the Department of Energy.  
   (g) 
    (h)  "Enterprise" means a revenue-producing improvement,
building, system, plant, works, facilities, or undertaking used for
or useful for the generation or production of electric energy for
lighting, heating, and power for public or private uses. Enterprise
includes, but is not limited to, all parts of the enterprise, all
appurtenances to it, lands, easements, rights in land, water rights,
contract rights, franchises, buildings, structures, improvements,
equipment, and facilities appurtenant or relating to the enterprise.

   (h) 
    (i)  "Financial assistance" in connection with a
project, enterprise or program, includes, but is not limited to, any
combination of grants, loans, the proceeds of bonds issued by the
authority, insurance, guarantees or other credit enhancements or
liquidity facilities, and contributions of money, property, labor, or
other things of value, as may be approved by resolution of the
board; the purchase or retention of authority bonds, the bonds of a
participating party for their retention or for sale by the authority,
or the issuance of authority bonds or the bonds of a special purpose
trust used to fund the cost of a project or program for which a
participating party is directly or indirectly liable, including, but
not limited to, bonds, the security for which is provided in whole or
in part pursuant to the powers granted by this division; bonds for
which the authority has provided a guarantee or enhancement; or any
other type of assistance determined to be appropriate by the
authority. 
   (i) 
   (j)  "Fund" means the California Consumer Power and
Conservation Financing  Authority  Fund. 
   (j) 
    (k)  "Loan agreement" means a contractual agreement
executed between the authority and a participating party that
provides that the authority will loan funds to the participating
party and that the participating party will repay the principal and
pay the interest and redemption premium, if any, on the loan.

   (k) 
    (l)  "Participating party" means either of the
following:
   (1) Any person, company, corporation, partnership, firm, federally
recognized California Indian tribe, or other entity or group of
entities, whether organized for profit or not for profit, engaged in
business or operations within the state and that applies for
financial assistance from the authority for the purpose of
implementing a project or program in a manner prescribed by the
authority.
   (2) Any subdivision of the state or local government, including,
but not limited to, departments, agencies, commissions, cities,
counties, nonprofit corporations, special districts, assessment
districts, and joint powers authorities within the state or any
combination of these subdivisions, that has, or proposes to acquire,
an interest in a project, or that operates or proposes to operate a
program under Section 3365, and that makes application to the
authority for financial assistance in a manner prescribed by the
authority. 
   (l) 
    (m)  "Program" means a program that provides financial
assistance, as provided in Article 6 (commencing with Section 3365).

   (m) 
    (n)  "Project" means plants, facilities, equipment,
appliances, structures, expansions, and improvements within the state
that serve the purposes of this division as approved by the
authority, and all activities and expenses necessary to initiate and
complete those projects described in Article 5 (commencing with
Section 3350) and Article 7 (commencing with Section 3368), of
Chapter 3. 
   (n) 
    (o)  "Revenues" means all receipts, purchase payments,
loan repayments, lease payments, rents, fees and charges, and all
other income or receipts derived by the authority from an enterprise,
or by the authority or a participating party from any other
financing arrangement undertaken by the authority or a participating
party, including, but not limited to, all receipts from a bond
purchase agreement, and any income or revenue derived from the
investment of any money in any fund or account of the authority or a
participating party. 
   (o) 
    (p)  "State" means the State of California.
  SEC. 316.  Section 3310 of the Public Utilities Code is amended to
read:
   3310.  The  authority   department  may
only exercise its powers pursuant to Article 4 (commencing with
Section 3340) of Chapter 3 for the following purposes:
   (a) Establish, finance, purchase, lease, own, operate, acquire, or
construct generating facilities and other projects and enterprises,
on its own or through agreements with public and private third
parties or joint ventures with public or private entities, or provide
financial assistance for projects or programs by participating
parties, to supplement private and public sector power supplies,
taking into account generation facilities in operation or under
development as of the effective date of this section, and to ensure a
sufficient and reliable supply of electricity for California's
consumers at just and reasonable rates.
   (b) Finance programs, administered by the  Energy
Commission,   department,  the commission, and
other approved participating parties for consumers and businesses to
invest in cost-effective energy efficient appliances, renewable
energy projects, and other programs that will reduce the demand for
energy in California.
   (c) Finance natural gas transportation and storage projects under
Article 7 (commencing with Section 3368) of Chapter 3.
   (d) Achieve an adequate energy reserve capacity in California
within five years of the effective date of this division.
   (e) Provide financing for owners of aged, inefficient, electric
powerplants to perform necessary retrofits to improve the efficiency
and environmental performances of those powerplants.
  SEC. 317.  Section 3320 of the Public Utilities Code is amended to
read:
   3320.  (a)  There is hereby created in the state
government the California Consumer Power and Conservation Financing
Authority, which   The department, also referred to in
this division as the authority,  shall be responsible for
administering this division.
   (b) The  authority   department  shall
implement the purposes of Chapter 2 (commencing with Section 3310),
and to that end finance projects and programs in accordance with this
division, all to the mutual benefit of the people of the state and
to protect their health, welfare, and safety.
  SEC. 318.  Section 3325 of the Public Utilities Code is repealed.

   3325.  (a) The authority shall be governed by a five-member board
of directors that shall consist of the following persons:
   (1) Four individuals appointed by the Governor, subject to
confirmation by the Senate. These four members shall have
considerable experience in power generation, natural gas
transportation or storage, energy conservation, financing, or
ratepayer advocacy.
   (2) The State Treasurer.
   (b) (1) For the initial term, the appointed members shall serve
staggered terms as follows:
   (A) The member appointed first shall serve a term of four years.
   (B) The member appointed second shall serve a term of three years.

   (C) The member appointed third shall serve a term of two years.
   (D) The member appointed fourth shall serve a term of one year.
   (2) The second and any subsequent terms shall be for four years.
   (c) A quorum is necessary for any action to be taken by the board.
Three of the members shall constitute a quorum, and the affirmative
vote of three board members shall be necessary for any action to be
taken by the board.
   (d) (1) The chairperson of the board shall be appointed by the
Governor. This position shall be a full-time, paid position.
   (2) Except as provided in this subdivision, the members of the
board shall serve without compensation, but shall be reimbursed for
actual and necessary expenses incurred in the performance of their
duties to the extent that reimbursement for these expenses is not
otherwise provided or payable by another public agency, and shall
receive one hundred dollars ($100) for each full day of attending
meetings of the authority. 
  SEC. 319.  Section 3326 of the Public Utilities Code is repealed.

   3326.  (a) The members of the board shall be subject to the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000)) of the Government Code, and all other applicable provisions
of law.
   (b) The board may purchase insurance for its fiduciaries or for
itself to cover liability or losses occurring by reason of the act or
omission of a fiduciary, if the insurance permits recourse by the
insurer against the fiduciary in the case of a breach of a fiduciary
obligation by the fiduciary. 
  SEC. 320.  Section 3327 of the Public Utilities Code is repealed.

   3327.  Meetings of the board shall be open to the public and shall
be conducted in accordance with the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code). 
  SEC. 321.  Section 3330 of the Public Utilities Code is amended to
read:
   3330.   The chief executive officer shall manage and
conduct the business and affairs of the authority and the fund
subject to the direction of the board.  Except as otherwise
provided in this section, the  board  
department  may assign to  the executive director, by
resolution,   a designee,  those duties generally
necessary or convenient to carry out its powers and purposes under
this division. Any action involving final approval of any bonds,
notes, loans, or other financial assistance shall require the
approval of  a majority of the members of the board 
 the department  .
  SEC. 322.  Section 3340 of the Public Utilities Code is repealed.

   3340.  The authority is authorized and empowered to do any of the
following:
   (a) Adopt an official seal.
   (b) Sue and be sued in its own name.
   (c) Employ or contract with officers and employees to administer
the authority. The authority may contract for the services of a chief
executive officer, who shall serve at the pleasure of the board. If
the chief executive officer contracts for the services of any other
officer or employee, the contract shall be subject to the approval of
the board.
   (d) Exercise the power of eminent domain.
   (e) Adopt rules and regulations for the regulation of its affairs
and the conduct of its business.
   (f)  Do all things generally necessary or convenient to carry out
its powers under, and the purposes of, this division. 
  SEC. 323.  Section 3340 is added to the Public Utilities Code, to
read:
   3340.  (a) The department is authorized and empowered to do all
things generally necessary or convenient to carry out its powers
under, and the purposes of, this division.
   (b) Except as provided in subdivision (c), bonding authority under
this division shall not be utilized by the department unless the
Secretary of Energy has delivered to the Joint Legislative Budget
Committee written notice of intent to exercise that authority at
least 30 days in advance. The notice shall reasonably describe the
purpose for which the bonding authority will be used and the
circumstances that support its use.
   (c) If the proposed exercise of authority is in response to a
declared emergency by the Governor, notice by the Secretary of Energy
is not required to be delivered 30 days in advance but shall be
delivered to the Joint Legislative Budget Committee as close to 30
days in advance as is feasible under the circumstances.
  SEC. 324.  Section 3341 of the Public Utilities Code is amended to
read:
   3341.  In connection with the purposes of this division, the
 authority   department  may do any
 or all  of the following:
   (a) Issue bonds, from time to time, as further provided in Chapter
5 (commencing with Section 3380.1), to pay all or part of the cost
of any enterprise, project, or program, or to otherwise carry out the
purposes of this division.
   (b) Enter into joint powers agreements with eligible public
agencies pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code.
   (c) Subject to any statutory or constitutional limitation on their
use, do any of the following as may, in the determination of the
 authority,   department,  be necessary or
convenient for the successful development, conduct, or financing of a
project, program, or enterprise, or for carrying out the purposes of
this division:
   (1) Engage the services, including, without limitation, the
services of private consultants; attorneys; financial professionals
and advisors; engineers; architects; construction, land use and
environmental experts; and accountants, to render professional and
technical assistance and advice.
   (2) Contract for engineering, architectural, accounting, or other
services of appropriate state agencies.
   (3) Pay the reasonable costs, including, without limitation, costs
of consulting engineers, architects, accountants, and construction,
land use, and environmental experts employed by the 
authority   department  or any participating party.
Except as otherwise provided in Section 3341.5, those costs shall be
recovered from participating parties.
   (d) Acquire, lease, take title to, and sell by installment sale or
otherwise, lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and other interests in lands
that are located within the state, as the  authority
  department  determines to be necessary or
convenient for an enterprise or the financing of a project, upon
terms and conditions the  authority   department
 considers to be reasonable.
   (e) Make, receive, or serve as a conduit for the making of, or
otherwise provide for, grants, contributions, guarantees, insurance,
credit enhancements or liquidity facilities, or other financial
enhancements to a participating party as financial assistance for a
project or program. The sources may include bond proceeds, dedicated
taxes, state appropriations, federal appropriations, federal grants
and loan funds, public and private sector retirement system funds,
and proceeds of loans from the Pooled Money Investment Account, or
any other source of money, property, labor, or other things of value.

   (f) Make loans to any participating party, either directly or by
making a loan to a lending institution or other financial
intermediary, in connection with the financing of a project or
program in accordance with an agreement between the 
authority   department  and a participating party,
either as a sole lender or in participation with other lenders.
   (g) Make loans to any participating party, either directly or by
making a loan to a lending institution, in accordance with an
agreement between the  authority   department
 and the participating party to refinance indebtedness incurred
by the participating party in connection with projects undertaken and
completed prior to any agreement with the  authority
  department  or expectation that the 
authority   department  would provide financing,
either as a sole lender or in participation with other lenders. The
power generated by those projects shall be subject to the terms and
conditions specified by the  authority  
department  in the agreement and pursuant to Section 3351.
   (h) Mortgage all or any portion of the  authority's
  department's  interest in a project or enterprise
and the property on which any project or enterprise is located,
whether owned or thereafter acquired, including the granting of a
security interest in any property, tangible or intangible.
   (i) Assign or pledge all or any portion of the  authority'
s   department's  interest in assets, things of
value, mortgages, deeds of trust, bonds, bond purchase agreements,
loan agreements, indentures of mortgage or trust, or similar
instruments, notes, and security interests in property, tangible or
intangible and the revenues therefrom, of a participating party to
which the  authority   department  has made
loans, and the revenues therefrom, including payment or income from
any interest owned or held by the  authority,  
department,  for the benefit of the holders of bonds.
   (j) Lease the project being financed to a participating party,
upon terms and conditions that the  authority  
department  deems proper; charge and collect rents therefor;
terminate any lease upon the failure of the lessee to comply with any
of the obligations thereof; include in any lease, if desired,
                                            provisions that the
lessee shall have options to renew the lease for a period or periods,
and at rents determined by the  authority;  
department;  purchase any or all of the project; or, upon
payment of all the indebtedness incurred by the  authority
  department  for the financing of the project, the
authority may convey, any or all of the project to the lessee or
lessees. The power generated by those projects shall be subject to
the terms and conditions specified by the  authority
  department  in the agreement and pursuant to
Section 3351.
   (k) (1) Issue, obtain, or aid in obtaining, from any department or
agency of the United States, from other agencies of the state, or
from any private company, any insurance or guarantee to or for, or
any letter or line of credit regarding, the payment or repayment of
interest or principal, or both, or any part thereof, on any bond,
loan, lease, or obligation or any instrument evidencing or securing
the same, made or entered into pursuant to this division.
   (2) Notwithstanding any other provision of this division, enter
into any agreement, contract or other instrument regarding any
insurance, guarantee, letter or line of credit specified in paragraph
(1), and accept payment in the manner and form provided therein in
the event of default by a participating party.
   (3) Assign any insurance, guarantee, letter or line of credit
specified in paragraph (1) as security for bonds issued by the
 authority   department  .
   () Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary or convenient to, directly or
indirectly, secure the  authority's   department'
s  bonds or a participating party's obligations to the 
authority,   department,  including, but not
limited to, bonds of a participating party purchased by the 
authority   department  for retention or sale, with
funds or moneys that are legally available and that are due or
payable to the participating party by reason of any grant,
allocation, apportionment, or appropriation of the state or agencies
thereof, to the extent that the Controller shall be the custodian at
any time of these funds or moneys, or with funds or moneys that are
or will be legally available to the participating party, the 
authority,   department,  or the state or any
agencies thereof by reason of any grant, allocation, apportionment,
or appropriation of the federal government or agencies thereof; and
in the event of written notice that the participating party has not
paid or is in default on its obligations to the  authority,
  department,  direct the Controller to withhold
payment of those funds or moneys from the participating party over
which it is or will be custodian and to pay the same to the 
authority   department  or its assignee, or direct
the state or any agencies thereof to which any grant, allocation,
apportionment, or appropriation of the federal government or agencies
thereof is or will be legally available to pay the same upon receipt
to the  authority   department  or its
assignee, until the default has been cured and the amounts then due
and unpaid have been paid to the  authority  
department  or its assignee, or until arrangements satisfactory
to the  authority   department  have been
made to cure the default.
   (m) Purchase, with the proceeds of the  authority's
  depart   ment's  bonds, bonds issued by,
or for the benefit of, any participating party in connection with a
project, pursuant to a bond purchase agreement or otherwise. Bonds
purchased pursuant to this division may be held by the 
authority,   department,  pledged or assigned by
the authority,   department,  or sold to
public or private purchasers at public or negotiated sale, in whole
or in part, separately or together with other bonds issued by the
 authority,   department,  and
notwithstanding any other provision of law, may be bought by the
 authority   department  at private sale.
   (n) Enter into purchase and sale agreements with all entities,
public and private, including state and local government pension
funds, with respect to the sale or purchase of bonds.
  SEC. 325.  Section 3341.1 of the Public Utilities Code is amended
to read:
   3341.1.  In connection with an enterprise, the  authority
  department  may do any or all of the following:
   (a) Acquire any enterprise by gift, purchase, or eminent domain as
necessary to achieve the purposes of the  authority
  department  pursuant to Sections 3310 and 3352.
   (b) Construct or improve any enterprise. By gift, lease, purchase,
eminent domain, or otherwise, it may acquire any real or personal
property, for an enterprise, except that no property of a state
public body may be acquired without its consent. The 
authority   department  may sell, lease, exchange,
transfer, assign, or otherwise dispose of any real or personal
property or any interest in such property. It may lay out, open,
extend, widen, straighten, establish, or change the grade of any real
property or public rights-of-way necessary or convenient for any
enterprise.
   (c) Operate, maintain, repair, or manage all or any part of any
enterprise, including the leasing for commercial purposes of surplus
space or other space that is not economic to use for such enterprise.

   (d) Adopt reasonable rules or regulations for the conduct of the
enterprise.
   (e) Prescribe, revise, and collect charges for the services,
facilities, or energy furnished by the enterprise. The charges shall
be established and adjusted so as to provide funds sufficient with
other revenues and moneys available therefor, if any, to (1) pay the
principal of and interest on outstanding bonds of the 
authority   department  financing such enterprise
as the same shall become due and payable, (2) create and maintain
reserves, including, without limitation, operating and maintenance
reserves and reserves required or provided for in any resolution
authorizing, or trust agreement securing such bonds, and (3) pay
operating and administrative costs of the  authority
  department  .
   (f) Execute all instruments, perform all acts, and do all things
necessary or convenient in the exercise of the powers granted by this
article.
  SEC. 326.  Section 3341.2 of the Public Utilities Code is amended
to read:
   3341.2.  In connection with a project, the  authority
  department  may do any or all of the following:
   (a) Determine the location and character of any project to be
financed under this division.
   (b) Acquire, construct, enlarge, remodel, renovate, alter,
improve, furnish, equip, own, maintain, manage, repair, operate,
lease as lessee or lessor, or regulate any project to be financed
under this division.
   (c) Contract with any participating party for the construction of
a project by such participating party.
   (d) Enter into leases and agreements, as lessor or lessee, with
any participating party relating to the acquisition, construction,
and installation of any project, including real property, buildings,
equipment, and facilities of any kind or character.
   (e) Establish, revise, charge and collect rates, rents, fees and
charges for a project. The rates, rents, fees, and charges shall be
established and adjusted in respect of the aggregate rates, rents,
fees, and charges from all projects so as to provide funds sufficient
with other revenues and moneys available therefor, if any, to (1)
pay the principal of and interest on outstanding bonds of the
 authority   department  financing such
project as the same shall become due and payable, (2) create and
maintain reserves, including, without limitation, operating and
maintenance reserves and reserves required or provided for in any
resolution authorizing, or trust agreement securing such bonds, and
(3) pay operating and administrative costs of the  authority
  department  .
   (f) Enter into contracts of sale with any participating party
covering any project financed by the  authority 
 department  .
   (g) As an alternative to leasing or selling a project to a
participating party, finance the acquisition, construction, or
installation of a project by means of a loan to the participating
party.
   (h) Execute all instruments, perform all acts, and do all things
necessary or convenient in the exercise of the powers granted by this
article.
  SEC. 327.  Section 3345 of the Public Utilities Code is amended to
read:
   3345.   The  authority's   department's 
operating budget  under this division  shall be subject to
review and appropriation in the annual Budget Act. For purposes of
this section, the  authority's   department's
 operating budget  under this   division 
shall include the costs of personnel, administration, and overhead
 attributable to carrying out this division  .
  SEC. 328.  Section 3370 of the Public Utilities Code is amended to
read:
   3370.  (a) There is hereby created in the State Treasury the
California Consumer Power and Conservation Financing 
Authority  Fund for expenditure by the  authority
  department  for the purpose of implementing the
objectives and provisions of this division. For the purposes of
subdivision (e), or as necessary or convenient to the accomplishment
of any other purpose of the  authority,  
department,  the  authority   department
 may establish within the fund additional and separate accounts
and subaccounts.
   (b) The assets of the fund shall be available for the payment of
the salaries and other expenses charged against it in accordance with
this division.
   (c) Except as provided under Section 3345, all moneys in the fund
that are not General Fund moneys are continuously appropriated to the
 authority   department  and may be used
for any reasonable costs  which   that  may
be incurred by the  authority   department
 in the exercise of its powers under this division.
   (d) The fund, on behalf of the  authority,  
dep   artment,  may borrow or receive moneys from the
 authority,   department,  or from any
federal, state, or local agency or private entity, to create reserves
in the fund as provided in this division and as authorized by the
board.
   (e) The  authority   department  may
pledge any or all of the moneys in the fund (including in any account
or subaccount) as security for payment of the principal of, and
interest on, any particular issuance of bonds issued pursuant to this
division.
   (f) The  authority,   department,  may,
from time to time, direct the Treasurer to invest moneys in the fund
that are not required for the  authority's  
department's  current needs, including proceeds from the sale of
any bonds, in any securities permitted by law as the 
authority  department  shall designate. The
 authority   department  also may direct
the Treasurer to deposit moneys in interest-bearing accounts in state
or national banks or other financial institutions having principal
offices in this state. The  authority  
department  may alternatively require the transfer of moneys in
the fund to the Surplus Money Investment Fund for investment pursuant
to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2
of Division 4 of the Government Code. All interest or other increment
resulting from an investment or deposit shall be deposited in the
fund, notwithstanding Section 16305.7 of the Government Code. Moneys
in the fund shall not be subject to transfer to any other fund
pursuant to any provision of Part 2 (commencing with Section 16300)
of Division 4 of the Government Code, excepting the Surplus Money
Investment Fund.
  SEC. 329.  Section 9502 of the Public Utilities Code is amended to
read:
   9502.  On or before December 1, 1994, and on a biennial basis
thereafter, each publicly owned electric and gas utility shall submit
a report to the  State Energy Resources Conservation and
Development Commission   Department of Energy 
describing the status of their low-income weatherization programs
required by Sections 9500 and 9501. Thereafter, as part of the
biennial conservation report prepared pursuant to Section 25401.1 of
the Public Resources Code, the  commission  
department  shall report to the Legislature summarizing publicly
owned utility efforts to comply with Sections 9500 and 9501.
  SEC. 330.  Section 80000 of the Water Code is amended to read:
   80000.  The Legislature hereby finds and declares all of the
following:
   (a) The furnishing of reliable reasonably priced electric service
is essential for the safety, health, and well-being of the people of
California. A number of factors have resulted in a rapid, unforeseen
shortage of electric power and energy available in the state and
rapid and substantial increases in wholesale energy costs and retail
energy rates, with statewide impact, to such a degree that it
constitutes an immediate peril to the health, safety, life and
property of the inhabitants of the state, and the public interest,
welfare, convenience and necessity require the state to participate
in markets for the purchase and sale of power and energy.
   (b) In order for the  department   state
 to adequately and expeditiously undertake and administer the
critical responsibilities established in this division, it must be
able to obtain, in a timely manner, additional and sufficient
personnel with the requisite expertise and experience in energy
marketing, energy scheduling, and accounting.
  SEC. 331.  Section 80001 is added to the Water Code, to read:
   80001.  The Department of Energy hereby succeeds to and is vested
with all powers, duties, rights, assets, responsibilities,
obligations, liabilities, and jurisdiction previously vested with the
Department of Water Resources under this division. Whenever the term
"department" is used in this division, it shall henceforth mean the
Department of Energy. Any authority conferred upon the Department of
Water Resources by any other provision of law for the purpose of
carrying out any function described in this division is hereby vested
in, and may be exercised by, the Department of Energy. The transfer
of functions described in this division to the Department of Energy
does not in any way invalidate or alter prior actions undertaken by
the Department of Water Resources under this division and every
instrument, obligation, rate entitlement, or other rights resulting
from the prior actions remain fully in effect.
  SEC. 332.  Section 80001.5 is added to the Water Code, to read:
   80001.5.  (a) All officers and employees of the Department of
Water Resources who, on January 1, 2010, are serving in the state
civil service, other than as temporary employees, and are exercising
any duty, power, purpose, responsibility, or jurisdiction to which
the Department of Energy succeeds pursuant to Section 80001, are
transferred to the Department of Energy. The status, positions, and
rights of those persons existing prior to the transfer shall not be
affected by the transfer and shall be retained by those persons as
officers and employees of the Department of Energy, pursuant to the
State Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government), except as to positions
exempted from civil service.
   (b) The Department of Energy shall have possession and control of
all records, papers, offices, equipment, supplies, moneys, funds,
appropriations, licenses, permits, agreements, contracts, claims,
judgments, and land or other property, real or personal, connected
with the administration of, or held for the benefit or use of the
Department of Water Resources for the performance of the functions
transferred to the Department of Energy by Section 80001.
   (c) All rules, orders, and decisions of the Department of Water
Resources in effect immediately preceding the effective date of this
section shall remain in effect and shall be fully enforceable unless
and until readopted, amended, or repealed, or until they expire by
their own terms.
   (d) No contract, lease, license, bond, or any other agreement to
which the Department of Water Resources is a party shall be void or
voidable by reason of the transfer of functions to the Department of
Energy by Section 80001, but shall continue in full force and effect,
with the Department of Energy assuming all of the rights,
obligations, liabilities, and duties of the Department of Water
Resources. The assumption by the Department of Energy shall not in
any way affect the rights of the parties to the contract, lease,
license, bond, or other agreement.
  SEC. 333.  The provisions of this act are severable. If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.