BILL NUMBER: AB 1016 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 19, 2009
INTRODUCED BY Assembly Member Villines
( Coauthors: Assembly Members
Adams, Bill Berryhill, Duvall,
Emmerson, Fletcher, Gaines, Gilmore,
Hagman, Harkey, Jeffries,
Knight, Miller, Niello, and Smyth
)
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, 25512.5, 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 amended, 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 provides 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 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 or
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 a 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
conservation 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 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 Secretary of
Energy or a requirement of the secretary that development rights be
acquired, a reference to 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
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) "Superintendent" means the Superintendent of Public
Instruction.
(b) "Fund" means the Katz Schoolbus Fund created pursuant to
Section 17911.
(c) "Department" means the Department of the California Highway
Patrol.
(d) "Program" means the Katz Safe Schoolbus Clean Fuel Efficiency
Demonstration Program.
(e) "Schoolbus" means a schoolbus, as defined in Section 545 of
the Vehicle Code, which is Type 1 and publicly owned.
(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 that operates publicly owned
schoolbuses.
SEC. 4. Section 17911.2 of the Education Code is amended to read:
17911.2. The 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 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 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 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 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 Department of Energy, with
the advice and consultation of the department and the superintendent.
The 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
Department of Energy determines, on or before March 26, 1990, that
the use of these funds for clean burning fuel projects is infeasible.
The 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
Department of Energy in a timely manner. The 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
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 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
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
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 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
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
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 a 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.
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 five members,
one official and four public directors.
SEC. 14. Section 32321 of the Financial Code is amended to read:
32321. (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 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 term of the official member of the board shall
coincide with his or her official term of office.
(b) The public members of the board shall be appointed by the
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 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 Department of Energy with respect to technical criteria that
are to be applied to projects receiving loans from the corporation
pursuant to this chapter. The corporation may contract with the
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
Department of Energy and the corporate president.
SEC. 18. Section 9100 of the Fish and Game Code is amended to
read:
9100. The 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
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 Public Employment Relations Board.
(6) Chairperson of the Workers' Compensation Appeals Board.
(7) Administrative Director of the Division of Industrial
Accidents.
(8) Chairperson of the State Water Resources Control Board.
(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 a Deputy Secretary for Energy Matters who may serve
as Secretary of the Natural Resources Agency designee on the
California Energy Commission and appoint an Assistant Secretary for
Coastal Matters who may serve as Secretary of the Natural Resources
Agency designee on the 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 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 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 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) This section 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 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 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 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:
15814.24.1. 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
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 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 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 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 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 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 Department of Energy.
(c) The commission shall revise and update the designations
specified in subdivision (b) not less than once every five years.
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 Secretary of Energy exercises its siting
authority and undertakes proceedings pursuant to Chapter 6
(commencing with Section 25500) of Division 15 of the Public
Resources Code with respect to any 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 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 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 this
title and Division 19 (commencing with Section 29000) of the Public
Resources Code, the policies of the Suisun Marsh Protection Plan, as
defined in Section 29113 of the Public Resources Code, and the
certified local protection program, as defined in Section 29111 of
the Public Resources 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 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) 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 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
Section 25516.1 of the Public Resources Code, by the Department of
Energy to have greater relative merit than available alternative
sites and related facilities for an applicant's service area that
have been determined to be acceptable pursuant to Section 25516 of
the Public Resources Code.
SEC. 33. Section 3805.5 of the Public Resources Code is repealed.
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.
(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 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
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 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 department to determine and
establish the terms of repayment and reimbursement of the award.
(3) The 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 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 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 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 department to determine and establish the terms of payment of the
royalty rate.
(3) The department shall determine the duration of the royalty
agreement and may negotiate a collection schedule.
(4) The department, for separate consideration, may negotiate and
receive payments to provide for an early termination of the royalty
agreement.
(c) (1) The 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 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 department as grants or loans to local
jurisdictions or private entities without regard to fiscal years.
These revenues shall be held by the 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 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 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
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 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 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 department
shall execute the funding agreements. The 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
department may expend funds, from that portion of the Geothermal
Resources Development Account used by the department for grants and
loans, to provide direct technical assistance to local jurisdictions
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 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 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 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 that shall be allocated to state
agencies and to other public agencies, if the Department of Energy,
after a public hearing, finds, in its judgment, that 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 oil, gas, and other hydrocarbons taken in kind for
finished products required for use by state and other public
agencies. 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 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 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
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 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
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 that a public agency rejects or disapproves.
(6) Actions undertaken by a public agency relating to any
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
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 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 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 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 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 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) This section 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 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 public adviser employed by the
department pursuant to Section 25217.1.
SEC. 48. Section 25107 of the Public Resources Code is repealed.
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
powerplant, or both electric transmission line and powerplant,
regulated according to 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 California Energy Commission designated or appointed pursuant to
Section 25203.
SEC. 52. Section 25113 of the Public Resources Code is repealed.
SEC. 53. Section 25120 of the Public Resources Code is repealed.
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 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. DEPARTMENT OF ENERGY
SEC. 57. Section 25200 of the Public Resources Code is repealed.
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.
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.
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.
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.
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) 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 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) 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 that the state may expect from the member or employee.
(g) A person who violates 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.
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.
(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. The Secretary of Energy may appoint a vice 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 the parts of
the state as the commission deems necessary. The commission shall
hold meetings at the times and at 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 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 department determines
is necessary to carry out its objectives under this division. The
department may charge and collect a reasonable fee for retrieving and
disseminating any information to cover the cost of that service. Any
funds received by the department pursuant to this subdivision shall
be deposited in the account and are continuously appropriated for
expenditure, by the 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.
SEC. 78. Section 25217.1 of the Public Resources Code is amended
to read:
25217.1. The secretary shall nominate a public adviser to the
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 secretary.
SEC. 79. Section 25217.5 of the Public Resources Code is repealed.
SEC. 80. Section 25218 of the Public Resources Code is amended to
read:
25218. In addition to other powers specified in this division,
the 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 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 department, the 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 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 those applicants
in any of those proceedings, and, by its request, receive copies of
any of 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. Except as provided in Sections 341 and 341.4 of the Public
Utilities Code, upon request of the department, the Attorney General
shall represent the department and the state in litigation
concerning affairs of the department, unless the Attorney General
represents another state agency, in which case the 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 these groups and the public as to
effective ways of participating in the 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. (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.
(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 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 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
department, the 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 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 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
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 department shall conduct
assessments and forecasts of all aspects of energy industry supply,
production, transportation, delivery and distribution, demand, and
prices. The 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 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 Independent System Operator, the
Department of Water Resources, the Department of Transportation, and
the Department of Motor Vehicles.
(b) In developing the assessments and forecasts prepared pursuant
to subdivision (a), the 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 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 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 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 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 department shall consult
with the following entities: the Public Utilities Commission, the
Office of Ratepayer Advocates, the State Air Resources Board, the
Independent System Operator, the Department of Water Resources 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 department.
(f) The department shall provide the report to the Public
Utilities Commission, the Office of Ratepayer Advocates, the State
Air Resources Board, the Independent System Operator, the Department
of Water Resources, 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 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 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 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 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 department shall assess the potential state and local costs and
impacts associated with accumulating waste at California's nuclear
powerplants. The department shall further assess other key policy and
planning issues that will affect the future role of nuclear
powerplants in the state. The 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 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 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 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 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 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 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 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 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 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
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
department, rely on data, to the maximum extent practicable, that is
reported to other government agencies or is otherwise available to
the 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 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 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 department shall collect data for petroleum fuel pursuant
to Chapter 4.5 (commencing with Section 25350). The 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 department
may use any of the following enforcement measures:
(a) If a person fails to comply with an applicable provision of
the data collection system, the 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 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 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 department:
(1) A person required to present information to the commission
pursuant to this section may request that specific information be
held in confidence. The 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 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 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 department and shall be
treated in a confidential manner.
(4) Information presented to or developed by the department and
deemed confidential pursuant to this section shall be held in
confidence by the 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 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 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 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 department or its designee shall rule on a request made
pursuant to paragraph (2) on or before 20 working days after its
receipt. The 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 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) Information submitted to the department pursuant to this
section is not confidential if the person submitting the information
has made it public.
(d) The 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) 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) Department employees, or contract employees of the 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 department employees
and the public.
(e) Data collected by the 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. This division does not authorize the 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 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 department in the form and extent as
the 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 department in
the form and extent as the 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 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 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 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
department may require California-specific forecasts. However, those
forecasts shall be required only if the department finds them
necessary to carry out its responsibilities.
(e) The 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 department may request additional information as necessary
to perform its responsibilities under this chapter.
(g) 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 department, within 30 days
after the end of each monthly reporting period, all of the following
information in such form and extent as the 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 department, shall submit a report in
the form and extent as the department prescribes pursuant to this
section. The 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 department to collect additional data under
subdivision (f).
(3) This subdivision is intended to clarify the department's
existing authority under subdivision (f) to collect specific
information. This subdivision does not either preclude or augment the
existing authority of the department to collect information.
SEC. 103. Section 25356 of the Public Resources Code is amended to
read:
25356. (a) The 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 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 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 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 25302. Any person may submit comments in writing regarding
the accuracy or sufficiency of the information submitted.
(b) The 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 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 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 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 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 department regarding the information and the department has
not yet held a hearing on the matter, or the department has held a
hearing and the person has properly submitted the issue to a court of
competent jurisdiction for review.
(b) A person who willfully makes any false statement,
representation, or certification in any record, report, plan, or
other document filed with the 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) A person required to present information to the
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 department pursuant to Section
25354 shall be held in confidence by the 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 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 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 department shall
issue a written decision 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 department shall not make public disclosure of information
submitted to it pursuant to Section 25354 within 10 working days
after the department has issued its written decision required in this
section.
(e) Information submitted to the 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 department nor any employee of the
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 department members and employees of
the 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 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 department specified in this division that is
obtained by another state agency shall be available to the
department and shall be treated in a confidential manner.
SEC. 109. Section 25400 of the Public Resources Code is amended to
read:
25400. The department shall conduct an ongoing assessment of the
opportunities and constraints presented by all forms of energy. The
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 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:
(1) Pricing of electricity and other forms of energy.
(2) Improved building design and insulation.
(3) Restriction of promotional activities designed to increase the
use of electrical energy by consumers.
(4) Improved appliance efficiency.
(5) Advances in power generation and transmission technology.
(6) Comparisons in the efficiencies of alternative methods of
energy utilization.
(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 department shall transmit to the
Governor and the Legislature, as part of the biennial report
specified in Section 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
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 department and Public Utilities Commission proceedings.
(b) The 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 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 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
department may comply with this section by posting the measures on
the 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
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 department determines that the occupants of the
housing shall have individual meters, the 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 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
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, a city, county, city and county, or state agency
shall not issue a permit for 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 this subdivision and
subdivision (a), 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 this subdivision
and subdivision (a) 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) A new appliance, except for any plumbing fitting, regulated
under paragraph (1), that is manufactured on or after July 1, 1984,
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 that will enable
contractors, builders, architects, engineers, and government
officials to estimate the energy consumed by residential and
nonresidential buildings. The 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 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 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 department may
charge and collect a reasonable fee from applicants to cover the
costs under this subdivision. Any funds received by the 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 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 department. The 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 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 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
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 that the 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 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 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 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 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 department may establish a schedule of
fees sufficient to pay the costs incurred by that enforcement.
(5) Construction of 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 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 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 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 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 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
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 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 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 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 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 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 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 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 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 the recommendations.
SEC. 121. Section 25403.5 of the Public Resources Code is amended
to read:
25403.5. (a) The 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
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 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.
(2) The department may determine that one or more of the load
management techniques are infeasible and may delay their adoption. If
the 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 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 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.
SEC. 122. Section 25403.8 of the Public Resources Code is amended
to read:
25403.8. (a) The 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
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 department shall
determine a priority schedule for the installation of battery backup
power for traffic control systems. The 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 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
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
department pursuant to subdivision (b). The 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 October 1, 2001, the 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 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 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 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
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
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, 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 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.
() "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.
(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.
(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.
(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).
(q) "School building" means a building housing classrooms,
laboratories, dormitories, athletic facilities, or related facilities
operated in connection with a school.
(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.
(s) "Technical assistance program" means assistance to 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.
(t) "Unit of local government" means a unit of general or special
purpose government below the state.
SEC. 127. Section 25412 of the Public Resources Code is amended to
read:
25412. (a) Any eligible institution may submit an application to
the 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 the form and contain the information incurred
in implementing a project that the department shall prescribe.
(b) An application may be for the purpose of financing the
eligible institution's share of costs 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 department only in
those instances where the eligible institution has furnished
information satisfactory to the 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
department.
SEC. 129. Section 25414 of the Public Resources Code is amended to
read:
25414. Annually for three years after completion of the energy
conservation project, each eligible institution that has received an
allocation pursuant to this chapter shall compute the cost of the
energy saved as a result of implementing a project funded by that
allocation. That cost shall be calculated in a manner prescribed by
the department.
SEC. 130. Section 25415 of the Public Resources Code is amended to
read:
25415. (a) 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 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 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 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
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 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 department.
(d) The 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 department on July 1 of each year.
(e) The 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 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 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 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 department as
set forth in this chapter, the 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 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 department, to the California Economic Development
Financing Authority and the California Infrastructure and Economic
Development Bank to raise funds to enable the 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 department as
conditions of issuing bonds to fund loans to, or the purchase of
loans from, the 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 department may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
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 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
department by the other provisions of this chapter, the 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 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 department may expend from the State Energy
Conservation Assistance Account an amount to pay for the actual
administrative costs incurred by the department pursuant to this
chapter. This amount shall not exceed 5 percent of the total
appropriation, to be held in reserve and used to defray costs
incurred by the department for allocations made by the 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, 2026, and as of that
date is repealed, unless a later enacted statute, which is enacted
before January 1, 2026, deletes or extends that date.
(b) All loans outstanding as of January 1, 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, 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 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
commission.
(c) "Small business" means 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) The department, in consultation with the Public
Utilities 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 department shall use the design guidelines adopted
pursuant to paragraph (2) of subdivision (f) of Section 14 of 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 department upon a showing that the department applied
factors, other than those adopted by the 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 department, does not constitute the
rendering of goods, services, or a direct benefit to the 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 department may contract with one or more business
entities capable of supplying or providing goods or services
necessary for the 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 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 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 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 departmental
guidelines under paragraph (2) of subdivision (f) of Section 14 of
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 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 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) 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 department, but in
no event may the term exceed the useful life of the purchase.
(c) The department may enter into agreements with lending
institutions and qualifying vendors to facilitate making and
administering loans. A loan made by the 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 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 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 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) 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 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
department determines 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 department. Repayment of loans shall be made in
full unless the department determines 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 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 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 department as
set forth in this chapter, the 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 from the proceeds of revenue bonds issued by 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 department, to the California Economic Development
Financing Authority and the California Infrastructure and Economic
Development Bank, to raise funds to enable the 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 department as
conditions of issuing bonds to fund loans to, or the purchase of
loans from, the 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 department may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
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 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 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
department may fund the project under this chapter.
SEC. 150. Section 25449 of the Public Resources Code is amended to
read:
25449. The 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 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, small power production systems,
and peak load reduction equipment.
SEC. 152. Section 25449.2 of the Public Resources Code is
repealed.
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 department.
(b) The department may charge a fee for the services provided
under this chapter.
(c) The 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 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, 2026, and as of that date is
repealed, unless a later enacted statute which is enacted before
January 1, 2026, deletes or extends that date.
(b) All loans outstanding as of January 1, 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, 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 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 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 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 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.
(b) After the effective date of this division, construction of a
facility or modification of an existing facility shall not be
commenced without first obtaining certification for the site and
related facility by the secretary, as prescribed in this division.
SEC. 158. Section 25500.5 of the Public Resources Code is amended
to read:
25500.5. The secretary shall certify sufficient sites and related
facilities that are required to provide a supply of electric power
sufficient to 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 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 agency with jurisdiction on December 31, 2009.
SEC. 160. Section 25501.7 of the Public Resources Code is amended
to read:
25501.7. A person proposing to construct a facility or a site to
which Section 25501 applies may waive the exclusion of the site and
related facility from the provisions of this chapter by submitting to
the commission an application and any and all of the provisions of
this chapter shall apply to the construction of the facility.
SEC. 161. Section 25502 of the Public Resources Code is repealed.
SEC. 162. Section 25503 of the Public Resources Code is repealed.
SEC. 163. Section 25504 of the Public Resources Code is repealed.
SEC. 164. Section 25504.5 of the Public Resources Code is
repealed.
SEC. 165. Section 25505 of the Public Resources Code is repealed.
SEC. 166. Section 25506 of the Public Resources Code is repealed.
SEC. 167. Section 25506.5 of the Public Resources Code is
repealed.
SEC. 168. Section 25507 of the Public Resources Code is repealed.
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 application for site and related facility
certification as an interested party in those proceedings.
SEC. 170. Section 25509 of the Public Resources Code is repealed.
SEC. 171. Section 25509.5 of the Public Resources Code is
repealed.
SEC. 172. Section 25510 of the Public Resources Code is repealed.
SEC. 173. Section 25511 of the Public Resources Code is repealed.
SEC. 174. Section 25512 of the Public Resources Code is repealed.
SEC. 175. Section 25512.5 of the Public Resources Code is
repealed.
SEC. 176. Section 25513 of the Public Resources Code is repealed.
SEC. 177. Section 25514 of the Public Resources Code is repealed.
SEC. 178. Section 25514.3 of the Public Resources Code is
repealed.
SEC. 179. Section 25514.5 of the Public Resources Code is
repealed.
SEC. 180. Section 25515 of the Public Resources Code is repealed.
SEC. 181. Section 25516 of the Public Resources Code is repealed.
SEC. 182. Section 25516.1 of the Public Resources Code is
repealed.
SEC. 183. Section 25516.5 of the Public Resources Code is
repealed.
SEC. 184. Section 25516.6 of the Public Resources Code is
repealed.
SEC. 185. Section 25517 of the Public Resources Code is amended to
read:
25517. Except as provided in Section 25501, construction of a
powerplant or electric transmission line shall not be commenced by 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 a
certificate of public convenience and necessity for a site or related
electrical facilities unless the utility has obtained a certificate
from the 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.
(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, 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.
SEC. 190. Section 25522 of the Public Resources Code is amended to
read:
25522. (a) Within 12 months of the filing of an application for
certification or at any later time as is mutually agreed by the
commission and the applicant, the 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 secretary shall prepare a written decision after the
public hearing on an application 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 secretary finds that there is
noncompliance with a state, local, or regional ordinance or
regulation in the application, 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 he or
she makes the findings required by Section 25525.
(2) The 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 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
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 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, a
nuclear fission 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 secretary may proceed to certify nuclear fission thermal
powerplants 100 legislative days after reporting 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 secretary may proceed to certify nuclear fission
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
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, a nuclear fission 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 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 secretary may proceed to certify nuclear fission thermal
powerplants 100 legislative days after reporting 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 secretary may proceed to certify nuclear fission
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
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.
SEC. 195. Section 25525 of the Public Resources Code is amended to
read:
25525. The secretary shall not certify a facility contained in
the application 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
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 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 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 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 the use is not inconsistent with
the primary uses of 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 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 the use is not inconsistent
with the primary uses of 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 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 secretary finds that the use is not
inconsistent with the primary uses of the lands and that there will
be no substantial adverse environmental effects and the approval of
any public agency having ownership or control of 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 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 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 that will
result in population densities in excess of the maximum population
densities that the secretary determines, as to the factors considered
by the commission pursuant to subdivision (b) of Section 25520, are
necessary to protect public health and safety.
(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 those
development rights that the 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 secretary shall be that as determined from
time to time by the United States Nuclear Regulatory Commission, if
the secretary finds that the determination is sufficiently definitive
for valid land use planning requirements.
(c) The secretary shall waive the requirements of the acquisition
of development rights by an applicant to the extent that the
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) A change in governmental land use restrictions in areas
designated in subdivision (c) of this section by any government
agency shall not be effective until approved by the 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. If a facility is proposed to be located in the coastal
zone or any other area with recreational, scenic, or historic value,
the 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 secretary. Lands within 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 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 the zone to the state. The
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 secretary may order a reconsideration of all or
part of a decision or order on petition of any party.
(b) A petition for reconsideration shall be filed within 30 days
after adoption by the secretary of a decision or order. The secretary
shall not order a reconsideration more than 30 days after he or she
has adopted a decision or order. The secretary shall order or deny
reconsideration on a petition within 30 days after the petition is
filed.
(c) A decision or order may be reconsidered by the secretary on
the basis of all pertinent portions of the record together with any
argument that the secretary may permit, or the secretary may hold a
further hearing, after notice to all interested persons. A decision
or order of the 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 secretary on an application for
certification of a site and related facility are subject to judicial
review by the Supreme Court of California.
(b) New or additional evidence shall not be introduced upon review
and the cause shall be heard on the record of the secretary as
certified to by him or her. The review shall not be extended further
than to determine whether the secretary has regularly pursued 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 secretary.
(c) Subject to the right of judicial review of decisions of the
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 secretary, or
to stop or delay the construction or operation of a powerplant
except to enforce compliance with the provisions of a decision of the
secretary.
(d) Notwithstanding Section 1250.370 of the Code of Civil
Procedure:
(1) If the 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 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) A decision of the secretary pursuant to Section 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 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 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 commission notifies the 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 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 evaluate
whether to pursue the project independently or in conjunction with
any other public or private entity, including the original
certificate holder. If the commission 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 secretary may revoke the original certification and issue
a new certification for the project to the commission unless the
commission's statutory authorization to finance or approve new
programs, enterprises, or projects has expired. If the 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 secretary issues a new certification for a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) to the commission, the secretary shall adopt
new milestones for the project that allow the commission up to 24
months to start construction of the project or to start to meet the
applicable deadlines or milestones. If the commission fails to begin
construction in conformity with the deadlines or milestones adopted
by the secretary, without good cause, the certification may be
revoked.
(i) (1) If the secretary issues a new certification for a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) to the commission and the commission pursues
the project without participation of the original certificate holder,
the 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
commission with the asset.
(2) If the commission reimburses the original certificate holder
for the costs described in paragraph (1), the original certificate
holder shall provide the 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 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 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 may 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 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
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, 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. 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 these costs incurred by local agencies.
SEC. 205. Section 25539 of the Public Resources Code is amended to
read:
25539. In reviewing applications for certification of
modifications of existing facilities, the commission shall adopt
rules and regulations as necessary to 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 secretary 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 an application for a geothermal powerplant, whether the
application is complete. If the application is determined not to be
complete, the commission's determination shall specify, in writing,
those parts of the application 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 application
complete, the commission shall determine whether the subsequent
filing is sufficient to complete the application. An application
shall be deemed filed for purposes of Section 25540 on the date the
commission determines the application is completed 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. 208. Section 25540.2 of the Public Resources Code is amended
to read:
25540.2. 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, the application
shall include all of the following, to the extent known:
(1) The number, type, and energy source of electric generating
units 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 facilities,
switchyards, and cooling ponds, lakes, or towers.
(6) Other information relating to the design, operation, and
siting of the facility that the commission may by regulation require.
(b) (1) If an application is filed pursuant to subdivision (a)
that proposes a site to be approved that will accommodate a potential
maximum electric generating capacity in excess of the capacity being
proposed for initial construction, the secretary may, in his or her
decision pursuant to subdivision (a), 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 the additional
capacity shall be determined by the commission.
(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
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.
SEC. 211. Section 25540.6 of the Public Resources Code is
repealed.
SEC. 212. Section 25541 of the Public Resources Code is amended to
read:
25541. The commission may exempt from this chapter 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 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
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 (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, 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 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 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 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) The department shall prepare, 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 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 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 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 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 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.
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 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 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 department described
in paragraph (1) of subdivision (a) of Section 25401 and Section
25603, the department shall conduct a statewide architectural design
competition to select outstanding designs for new single-family and
multifamily residential units 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). However, if the 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 department may increase these sums by the amount of 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). However, if the 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 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).
(4) Multifamily housing units with a market price or rental value
comparable to paragraph (2).
(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 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).
(6) To permit the 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 Division of the State Architect.
(2) One representative of the 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 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.
(i) The 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 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.
For purposes of administering the competition, the department
shall contract with the Division of the State Architect for materials
and services that cannot be performed by its staff.
(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 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 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 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 that are not
otherwise subject to 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 department shall provide assistance at the request of
local agencies.
(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 department shall, within the limits of available funds,
provide technical assistance and support for the development of
petroleum diesel fuels 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 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 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 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 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 department, are not adequately
provided for by competitive and regulated markets. The 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
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 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 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
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 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 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
department procedures.
(8) Adopt any proposed regulation at a regularly scheduled and
noticed meeting of the department. The regulation shall become
effective immediately unless otherwise provided by the 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
department shall transmit a copy of an adopted regulation to the
Office of Administrative Law for publication, or, if the 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 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 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 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 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 department may establish multiparty agreements. In a
multiparty agreement, the 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 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 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 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
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 that
intellectual property or in the benefits derived from that
intellectual property shall accrue to the State of California.
(b) The department may determine what share, if any, of the
intellectual property, or the benefits derived 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 department may solicit applications for awards
using a sealed competitive bid, competitive negotiation process,
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
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 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 department may establish interagency agreements.
(e) The 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
department may only enter into a single source agreement with a
particular party if the department determines that it is in the state'
s best interests.
(f) The 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 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 department to be in the best
interests of the state.
(g) The 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 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 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 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 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 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
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 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 department, the results achieved, and how the actual
costs and results compare to the expected costs and benefits. The
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 department shall regularly convene an advisory
board that shall make recommendations to guide the 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 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 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 department shall establish a grant program 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 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
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 department, which is
responsible for administration of the program.
SEC. 241. Section
25696 of the Public Resources Code is amended to read:
25696. The department may assist California-based energy
technology and energy conservation firms to export their
technologies, products, and services to international markets.
The 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, 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 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 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 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 department shall, in accordance with 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 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 department shall encourage electric utilities to cooperate
in joint preparation of an emergency load curtailment plan or
emergency energy distribution plan. If this cooperative plan is
developed between two or more electric utilities, the utilities may
submit the joint plans to the department in place of individual plans
required by subdivision (a) of this section.
(c) The 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 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, on or before January 6, 1975, the 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. 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
department and information provided at the hearing or hearings. 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 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. 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 a
new facility, the department shall review and revise the recommended
plans based on additional new capacity attributed to that facility.
The 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 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 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
department shall authorize the construction and use of generating
facilities under terms and conditions as specified by the department
to protect the public interest.
(b) Within 60 days after the authorization of construction and use
of the generating facilities, the 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 the generating facilities.
SEC. 250. Section 25720 of the Public Resources Code is amended to
read:
25720. (a) By January 31, 2002, the 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
department shall consult with other state agencies, including, but
not limited to, the State Air Resources Board.
(b) The 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 department estimates could
be produced by the largest California refiner over a two week period.
In making this examination and recommendation, the 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 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
department, but not longer than six weeks.
(d) The department shall evaluate reserve storage space from
existing facilities.
(e) The 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 department and the
State Air Resources Board, in consultation with the other state and
local agencies the 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
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 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
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 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 department, the
Department of General Services, and the State Air Resources Board, in
consultation with any other state agency that 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.
(b) In developing the specifications, 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 7 (commencing with Section 42400) of Part 3 of Division 30.
(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
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 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 department, in
consultation with any other state agency that the 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 department shall make
recommendations on all of the following items:
(a) Establishing a test procedure for measuring tire fuel
efficiency.
(b) Development of a 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 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 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 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 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 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
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 department pursuant to paragraphs
(3), (4), and (6) of subdivision (e) of Section 25740.5.
(b) Funds used to support in-state renewable electricity
generation facilities pursuant to this section shall be expended in
accordance with this chapter.
(c) Facilities that are eligible to receive funding pursuant to
this section shall be registered in accordance with criteria
developed by the 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 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 department the types and quantities of biomass fuels
used.
(2) The 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) An existing facility seeking an award pursuant to this section
shall be evaluated by the department to determine the amount of the
funds being sought, the cumulative amount of funds the facility has
received previously from the 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
department shall use this evaluation to determine the value of an
award to the public relative to other renewable energy investment
alternatives. The 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 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 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 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) 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 department. The 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
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
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 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 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 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 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 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) 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 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 department upon a showing that factors other than those
described in the guidelines adopted by the 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
department, shall not constitute the rendering of goods, services,
or a direct benefit to the 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 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 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 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 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 department without regard to fiscal year for the
purposes enumerated in this chapter.
(e) Upon notification by the 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
department based on the procedures it adopts under this chapter.
Based on the eligibility of each award, the 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 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 department to represent a portion of a multiyear
funding commitment.
(f) The department may transfer funds between accounts for
cashflow purposes 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 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 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
department determines that it is unable to do so in a manner that
complies with subparagraphs (A) to (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 department, an onroad fleet testing program
developed by tire manufacturers in consultation with the department
and the board, conducted by tire manufacturers, and submitted to the
department on or before January 1, 2006.
(c) If the 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 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 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 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. (a) A person who submits to the department a notice of
intent for 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. The fee shall only be paid on
one of the alternate proposed facility sites that has the highest
electrical designed capacity. In no event shall the fee be less than
one thousand dollars ($1,000) nor more than twenty-five thousand
dollars ($25,000).
(b) For any other facility, the notice shall be accompanied by a
fee of five thousand dollars ($5,000). 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. Funds received by the 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
department finds that any provision of this division is violated or a
violation is threatening to take place that constitutes an emergency
requiring immediate action to protect the public health, welfare, or
safety, the Attorney General, upon request of the department, shall
petition a court to enjoin the violation. The court shall have
jurisdiction to grant 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, an aggrieved person
may file with the superior court a petition for a writ of mandate for
review of the determination. Failure to file 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 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 the
evaluation, finding, or determination.
SEC. 270. Section 25911 of the Public Resources Code is amended to
read:
25911. The 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 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 that causes a prohibition
on the sale and installation of urea formaldehyde foam insulation,
the 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 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 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 a certification program is available, by the 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 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 department.
(e) 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) A person who violates 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.
(d) Before any penalty collected is paid out pursuant to
subdivision (b), the amount of 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. An inspector appointed or authorized by the department
shall have access to the premises, equipment, materials, partly
finished and finished articles, and records of any person subject to
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 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 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 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
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) This section 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 Department of Energy, through the Office of Energy
Market Oversight, shall immediately participate in all relevant
Federal Energy Regulatory Commission proceedings. The 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 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 Office of Energy Market Oversight, at the times
that the 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
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 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 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, this article 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 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 Office
of Energy Market Oversight shall 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 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 pursuant to Section 80110 of the Water Code, that charge
shall be payable until all obligations of the 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. 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 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 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 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 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 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 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 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 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 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 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 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 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
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
Department of Energy shall issue a report calculating net system
power. The department will establish the generation mix for net
generation imports delivered at interface points and metered by the
system operators. The 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) This section 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 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 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 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.
(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 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 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 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 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 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. This paragraph 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 department shall do all of the following:
(a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision (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 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 department shall request data
from the commission. The commission shall collect data from
electrical corporations and remit the data to the 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 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 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 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) This section 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 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
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) 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) 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) This section does not alter, modify, or 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. This section does not expand, modify, or
limit the 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 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 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 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) This section does not alter or 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 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, 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. However, this section does not preclude this
limitation or alteration if and when adequate provision 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, this subdivision 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 pursuant to that division.
SEC. 308. Section 1001 of the Public Utilities Code is amended to
read:
1001. (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 that
construction.
(2) This article shall not be construed to require any corporation
described in paragraph (1) to secure 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 an order and prescribe 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 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. This subdivision does not require
the department to approve or adopt any electricity demand model or
forecast.
(b) 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) 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 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 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.
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 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 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) (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.
(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.
(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.
(j) "Fund" means the California Consumer Power and Conservation
Financing Fund.
(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.
(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.
(m) "Program" means a program that provides financial assistance,
as provided in Article 6 (commencing with Section 3365).
(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.
(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.
(p) "State" means the State of California.
SEC. 316. Section 3310 of the Public Utilities Code is amended to
read:
3310. The 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 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) The department, also referred to in this division as
the authority, shall be responsible for administering this division.
(b) The 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.
SEC. 319. Section 3326 of the Public Utilities Code is repealed.
SEC. 320. Section 3327 of the Public Utilities Code is repealed.
SEC. 321. Section 3330 of the Public Utilities Code is amended to
read:
3330. Except as otherwise provided in this section, the
department may assign to 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
the department.
SEC. 322. Section 3340 of the Public Utilities Code is repealed.
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
department may do any 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
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 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 department determines to be
necessary or convenient for an enterprise or the financing of a
project, upon terms and conditions the 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 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 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 department or expectation that the 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 department in
the agreement and pursuant to Section 3351.
(h) Mortgage all or any portion of the 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 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 department has made
loans, and the revenues therefrom, including payment or income from
any interest owned or held by the 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 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 department; purchase any or all of the project; or, upon
payment of all the indebtedness incurred by the 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 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
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 department's bonds or a participating party's
obligations to the department, including, but not limited to, bonds
of a participating party purchased by the 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
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 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
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
department or its assignee, until the default has been cured and the
amounts then due and unpaid have been paid to the department or its
assignee, or until arrangements satisfactory to the department have
been made to cure the default.
(m) Purchase, with the proceeds of the department'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 department, pledged or assigned by the 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
department, and notwithstanding any other provision of law, may be
bought by the 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 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 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 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 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
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 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
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 department.
(f) Enter into contracts of sale with any participating party
covering any project financed by the 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 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 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 Fund for
expenditure by the 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 department, the 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
department and may be used for any reasonable costs that may be
incurred by the department in the exercise of its powers under this
division.
(d) The fund, on behalf of the department, may borrow or receive
moneys from the 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 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 department, may, from time to time, direct the Treasurer
to invest moneys in the fund that are not required for the department'
s current needs, including proceeds from the sale of any bonds, in
any securities permitted by law as the department shall designate.
The 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
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 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 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 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.