AB 1016 Assembly Bill

BILL NUMBER: AB 1016	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 4, 2010
	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.
  An act to amend Section 1   250.310 of the
Code of Civil Procedure, to amend Section 14074 of the Corporations
Code, to repeal Sections 17925 and 41304 of, and to repeal Part 10.7
(commencing with Section 17910) of Division 1 of Title 1 of, the
Education Code, to amend Sections 32940 and 32942 of the Financial
Code, to amend Sections 9100 and 9101 of the Fish and Game Code, to
amend Sections 11041, 11550, 11553, 11553.5, 12802.5, 12805, 14450,
14684, 14684.1, 15814.22,   15814.23, 15814.30, 15814.34,
16366.2, 16366.35, 16366.6, 16366.7, 16367.6, 66645, and 66646 of, to
amend and renumber Section 15814.25 of, to amend, repeal, and add
Sections 12730 and 16367.5 of, to repeal Sections 16366.3, 16366.4,
16366.5, 16366.8, 16366.9, 16367.61, 16367.65, 16367.7, and 16367.8
of, and to repeal and add Section 16366.1 of, the Government Code, to
amend Sections 3808, 3810, 3822, 3822.1, 3822.2, 4799.16, 6815.2,
14584, 21080, 25000.1, 25005.5, 25104, 25106, 25107, 25110, 25112,
25123, 25205, 25207, 25209, 25210, 25211, 25212, 25213, 25214, 25215
25216, 25216.3, 25216.5, 25217.1, 25218, 25218.5, 25220, 25221,
25222, 25223, 25224, 25225, 25226, 25301, 25302, 25303, 25304, 25305,
25305.5, 25306, 25310, 25320, 25321, 25322, 25323, 25324, 25331,
25332, 25333, 25334, 25335, 25336, 25337, 25338, 25339, 25340, 25341,
25354, 25356, 25357, 25358, 25362, 25364, 25366, 25400, 25401,
25401.2, 25401.5, 25401.6, 25401.7, 25401.9, 25402, 25402.1, 25402.2,
25402.3, 25402.4, 25402.5, 25402.5.4, 25402.6,   25402.7,
25402.8, 25402.9, 25403, 25403.5, 25403.8, 25404, 25405.5, 25405.6,
25410.5, 25410.6, 25412, 25413, 25414, 25415, 25416, 25417, 25417.5,
25419, 25420, 25422, 25426, 25433.5, 25434, 25434.5, 25441, 25442,
25442.5, 25442.7, 25443, 25443.5, 25445, 25449.3, 25450, 25450.1,
25450.3, 25450.4, 25450.5, 25460, 25461, 25462, 25463, 25470, 25471,
25472, 25473, 25474, 25494, 25495, 25496, 25500, 25500.5, 25501,
25501.7, 25508, 25517, 25519, 25520, 25521, 25522, 25523, 25524.1,
25524.2, 25525, 25526, 25527, 25528, 25529, 25530, 25531, 25532,
25534, 25534.1, 25534.2, 255   37, 25538, 25539, 25540,
25540.1, 25540.2, 25540.3, 25540.5, 25541, 25541.1, 25541.5, 25542,
25543, 25601, 25602, 25603, 25605, 25605.5, 25608, 25609, 25609.5,
25610, 25616, 25617, 25618, 25630, 25650, 25678, 25679, 25696,
25696.5, 25697, 25700, 25701, 25702, 25703, 25704, 25705, 25720,
25721, 25722, 25722.5, 25722.6, 25722.7, 25723, 25740.5, 25741,
25771, 25772, 25773, 25782, 25783, 25784, 25802, 25803, 25900, 25901,
25902, 25910, 25911, 25912,   25942, 25960, 25961, 25962,
25963, 25964, 25965, 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 amend and repeal
Section 25449 of, to add Chapter 3.5 (commencing with Section 25227)
to Division 15 of, to add Chapter 5.10 (commencing with Section
25499) to Division 15 of, to repeal Sections 3805.5, 25113, 25217,
25217.5, 25502, 25502.3, 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, 25540.6, and 25603.5 of, to repeal Article
3 (commencing with Section 25435) of Chapter 5.3 of Division 15 of,
and to repeal and add Sections 25120, 25200, 25201, 25202, 25203,
25204, 25206, and 25219 of, the Public Resources Code, to amend
Sections 332.1, 348, 352, 353.7, 366.1, 366.2, 384, 398.3,  
398.5, 399.2.5, 399.8, 399.11, 399.12, 399.12.5, 399.13, 399.15,
399.16, 399.17, 454.5, 464, 848.1, 1001, 1731, 1768, 1822, 2774.6,
2826.5, 2827, and 9502 of, to add Sections 322, 345.1, 345.2, and 411
to, to repeal Sections 346, 350, 360, 365 of, and to repeal Article
2 (commencing with Section 334) of Chapter 2.3 of Part 1 of Division
1 of, the Public Utilities 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 and the Electricity Oversight
Board with jurisdiction related to energy matters. Existing law
provides the 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
General Services, and the Office of the State Architect with
jurisdiction over certain energy-related matters. Existing law
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 and the Electricity Oversight Board. The bill
would create the Department of Energy, headed by a Secretary of
Energy, and would create the California Energy Board 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 require the Governor to
appoint the initial secretary by January 31, 2011. The bill would
authorize the Governor to appoint an Assistant Secretary of Energy
who would serve at the pleasure of the Governor. The bill would
require the department to create a legal subcommittee comprised of
specified members to develop a single statewide position on
litigation concerning energy matters.  
   The bill would provide that the California Energy Board consists
of the following members: the Secretary of Energy who would be the
chair of the board, 4 members of the public with qualifications, as
specified, appointed by the Governor and subject to confirmation by
the Senate, the Secretary of the Natural Resources Agency, and the
president of the California Public Utilities Commission. The
Secretary of the Natural Resources Agency, and the president of the
California Public Utilities Commission would serve as ex officio,
nonvoting members of the board. The bill would specify that the
public members shall serve for a term of 4 years. The bill would
require the board to nominate for appointment by the Governor a
public adviser to the board who would serve for a 3-year term and may
be removed upon the joint concurrence of 4 board members and the
Governor.  
   The bill would vest the Office of Energy Market Oversight with the
powers, duties, responsibilities, obligations, liabilities, and
jurisdiction of the Electricity Oversight Board and add to the
functions of the office.  
   The bill would vest the new department and the California Energy
Board with the powers, duties, responsibilities, obligations,
liabilities, jurisdiction, and rights and privileges of the State
Energy Resources Conservation and Development Commission, as
specified.  
   The bill would transfer jurisdiction over the certification of
thermal powerplants and grant jurisdiction over certification of
specified solar nonthermal powerplants to the California Energy
Board. The bill would also transfer jurisdiction of certain
energy-related matters from the Office of Planning and Research, 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 transfer all responsibilities with respect to the
certification of certain electric transmission facilities from the
Public Utilities Commission to the exclusive jurisdiction of the
California Energy Board. The bill would require the Department of
Energy, on or before January 1, 2012, in consultation with the Public
Utilities Commission and the Independent System Operator, to submit
to the Governor and the Legislature a strategic plan identifying
administrative and statutory measures that would improve the siting
and licensing process for electric transmission lines.  
   (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 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.  
   (4) Existing law requires the Department of Community Services and
Development to administer federal funds for programs to provide
energy assistance to qualified low-income households and to
administer the community services block grant program.  
   This bill would transfer the above-described duties and
responsibilities of the Department of Community Services and
Development, on and after January 1, 2013, to the Department of
Energy.  
   (5) Existing law established the Katz Safe Schoolbus Clean Fuel
Efficiency Demonstration Program to assist local educational agencies
in replacing older schoolbuses with schoolbuses meeting federal
safety standards that operate with greater efficiency and fewer
adverse air emissions.  
   This bill would repeal this program.  
   (6) Existing law establishes the Small Business Energy Efficient
Refrigeration Program and the State Solar Medallion Passive Design
Competition.  
   This bill would repeal the program and competition.  
   (7) The bill would make conforming changes in existing law. 

   (8) The bill would provide that the provisions of the bill are
severable.  
   (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
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. 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 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 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  such   the
 interest.
   (d) A statement of the right of the plaintiff to take by eminent
domain the property described in the complaint. The statement shall
include:
   (1) A general statement of the public use for which the property
is to be taken.
   (2) An allegation of the necessity for the taking as required by
Section 1240.030; where the plaintiff is a public entity, a reference
to its resolution of necessity; where the plaintiff is a
quasi-public entity within the meaning of Section 1245.320, a
reference to the resolution adopted pursuant to Article 3 (commencing
with Section 1245.310) of Chapter 4; where the plaintiff is a
nonprofit hospital, a reference to the certificate required by
Section 1260 of the Health and Safety Code; where the plaintiff is a
public utility and relies on a certification of the  State
Energy Resources Conservation and Development Commission 
 California Energy Board or a requirement of  that
commission   the California Energy Board  that
development rights be acquired, a reference to  such
  that  certification or requirement.
   (3) A reference to the statute that authorizes the plaintiff to
acquire the property by eminent domain. Specification of the
statutory authority may be in the alternative and may be
inconsistent.
   (e) A map or diagram portraying as far as practicable the property
described in the complaint and showing its location in relation to
the project for which it is to be taken.
   SEC. 2.    Section 14074 of the  
Corporations Code   is amended to read: 
   14074.  The agency shall enter into an agreement with the 
California Energy Extension Service of the Office of Planning and
Research   Department of Energy  to assist small
business owners in reducing their energy costs through low interest
loans and by providing assistance and information.
  SEC. 3.    Part 10.7 (commencing with Section 17910)
of Division 1 of Title 1 of the   Education Code  
is repealed. 
   SEC. 4.    Section 17925 of the   Education
Code   is repealed.  
   17925.  Prior to distributing any state funds pursuant to this
part, the Superintendent of Public Instruction shall consult with the
State Energy Resources Conservation and Development Commission to
avoid duplication or overlap with appropriations from the Katz
Schoolbus Fund, created pursuant to Section 17911. 
   SEC. 5.    Section 41304 of the   Education
Code   is repealed.  
   41304.  (a) There is appropriated annually from the Driver
Training Penalty Assessment Fund to the General Fund in the State
Treasury and from the General Fund to the California Energy Extension
Service of the Office of Planning and Research a sum as necessary to
establish and maintain a unit for driver instruction within the
State Department of Education as set forth in Section 41904.
   (b) In addition, subject to Section 41305, there shall be
appropriated from the Driver Training Penalty Assessment Fund to the
General Fund, then to the State School Fund each fiscal year, the sum
the Superintendent of Public Instruction certifies as necessary to
reimburse on a quarterly basis for each current fiscal year school
districts, county superintendents of schools, the Department of the
Youth Authority, and the State Department of Education for the actual
cost of instructing pupils in the operation of motor vehicles.
   The amount shall not exceed ninety-seven dollars ($97) per pupil
instructed in the laboratory phase of driver education in accordance
with the rules and regulations of the State Board of Education.
   (c) Subject to Section 41305, there shall also be appropriated
from the Driver Training Penalty Assessment Fund the sum the
Superintendent of Public Instruction shall certify as necessary to
reimburse on a quarterly basis for each current fiscal year school
districts, county superintendents of schools, the Department of the
Youth Authority, and the State Department of Education for the actual
cost of replacing vehicles and simulators used exclusively in the
laboratory phase of driver education programs, but the amount shall
not exceed three-fourths of that part of the actual cost of
instructing pupils in the laboratory phase of driver education which
is: (1) in excess of ninety-seven dollars ($97) per pupil instructed,
and (2) expended by the district, the county superintendent of
schools, the Department of the Youth Authority, and the State
Department of Education in replacing the vehicles and simulators.
Reimbursement for vehicles shall be computed for only that portion of
the total mileage used exclusively in the laboratory phase of driver
education programs.
   (d) In addition, subject to Section 41305, there shall be provided
from the Petroleum Violation Escrow Account to the General Fund,
then to the State School Fund each fiscal year the sum the
Superintendent of Public Instruction certifies as necessary to
reimburse on a quarterly basis for each current fiscal year school
districts, county superintendents of schools, the Department of the
Youth Authority, and the State Department of Education for the costs
of fitting automobile driver training vehicles with the
instrumentation required under Section 51854 and to reimburse on a
quarterly basis for each current fiscal year school districts for the
costs of transferring instrumentation providing instructional
information on fuel consumption and vehicle fuel efficiency from one
automobile driver training vehicle to another under Section 51854.
   (e) In addition, subject to Section 41305, there shall be
appropriated from the Petroleum Violation Escrow Account to the
Driver Training Penalty Assessment Fund and from the Driver Training
Penalty Assessment Fund to the General Fund, then to the
Superintendent of Public Instruction each fiscal year the sum the
Superintendent of Public Instruction certifies as necessary to
reimburse on a quarterly basis for each current fiscal year the State
Department of Education for the costs of workshops conducted by the
department under Section 51854.
   (f) For purposes of computing reimbursement, whenever a school
district, a county superintendent of schools, the Department of the
Youth Authority, or the State Department of Education replaces a
driver training vehicle or simulator purchased by the district with a
vehicle or simulator that is a gift or loan, the purchase price of
the new or acquired equipment shall be deemed to be the market value
of the vehicle or simulator acquired through a gift or loan.
   A simulator is any device approved by the State Department of
Education to be used in classrooms for purposes of laboratory
instruction under simulated driving conditions. 
   SEC. 6.    Section 32940 of the   Financial
Code   is amended to read: 
   32940.  Guidelines for approving loan applications shall be
developed by the board on or before May 1, 1987. In developing those
guidelines, the board shall incorporate the recommendations adopted
by the  California Energy Commission  
Department of Energy  with respect to technical criteria
 which   that  are to be applied to
projects receiving loans from the corporation pursuant to this
chapter. The corporation may contract with the  Energy
Commission   Department of Energy  for the purpose
of developing technical guidelines.
   SEC. 7.    Section 32942 of the   Financial
Code   is amended to read: 
   32942.  Loans shall be approved according to criteria established
by a credit committee, chaired by the chief financial officer of the
corporation or that officer's designee. The other members of the
committee shall be the member of the board appointed by the 
Energy Commission   Department of Energy  and the
corporate president.
   SEC. 8.    Section 9100 of the   Fish and
Game Code   is amended to read: 
   9100.  The  California Energy Extension Service of the
Office of Planning and Research   Department of Energy
 shall implement a revolving loan fund program to assist
low-income fishing fleet operators reduce their energy costs and
conserve fuel by providing low-interest loans to those operators.
   SEC. 9.    Section 9101 of the   Fish and
Game Code   is amended to read: 
   9101.  Commencing January 1, 1994, and thereafter biennially, the
 California Energy Extension Service of the Office of
Planning and Research   Department of Energy  shall
report to the Legislature on the status of the loan program,
including the number and the amounts of loans made, the amount of
loans repaid, and a comparison of the ethnic background of the loan
recipients with the ethnic background of the low-income fishing fleet
operators.
   SEC. 10.    Section 11041 of the  
Government Code   is amended to read: 
   11041.  (a) Sections 11042 and 11043 do not apply to the Regents
of the University of California, the Trustees of the California State
University, Legal Division of the Department of Transportation,
Division of Labor Standards Enforcement of the Department of
Industrial Relations, Workers' Compensation Appeals Board, Public
Utilities Commission,  Department of Energy,  State
Compensation Insurance Fund, Legislative Counsel Bureau, Inheritance
Tax Department, Secretary of State, State Lands Commission, Alcoholic
Beverage Control Appeals Board (except when the board affirms the
decision of the Department of Alcoholic Beverage Control), State
Department of Education, and Treasurer with respect to bonds, nor to
any other state agency which, by law enacted after Chapter 213 of the
Statutes of 1933, is authorized to employ legal counsel.
   (b) The Trustees of the California State University shall pay the
cost of employing legal counsel from their existing resources.
   SEC. 11.    Section 11550 of the  
Government Code   is amended to read: 
   11550.  (a) Effective January 1, 1988, an annual salary of
ninety-one thousand fifty-four dollars ($91,054) shall be paid to
each of the following:
   (1) Director of Finance.
   (2) Secretary of Business, Transportation and Housing.
   (3) Secretary of the Resources Agency.
   (4) Secretary of California Health and Human Services.
   (5) Secretary of State and Consumer Services.
   (6) Commissioner of the California Highway Patrol.
   (7) Secretary of the Department of Corrections and Rehabilitation.

   (8) Secretary of Food and Agriculture.
   (9) Secretary of Veterans Affairs.
   (10) Secretary of Labor and Workforce Development.
   (11) State Chief Information Officer.
   (12) Secretary for Environmental Protection.
   (13) Secretary of California Emergency Management. 
   (14) Secretary of Energy. 
   (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.
   SEC. 12.    Section 11553 of the  
Government Code   is amended to read: 
   11553.  (a) Effective January 1, 1988, an annual salary of
eighty-one thousand six hundred thirty-five dollars ($81,635) shall
be paid to each of the following:
   (1) Chairperson of the Unemployment Insurance Appeals Board.
   (2) Chairperson of the Agricultural Labor Relations Board.
   (3) President of the Public Utilities Commission.
   (4) Chairperson of the Fair Political Practices Commission.

   (5) Chairperson of the Energy Resources Conservation and
Development Commission.  
   (6) 
    (5)  Chairperson of the Public Employment Relations
Board. 
   (7) 
    (6)  Chairperson of the Workers' Compensation Appeals
Board. 
   (8) 
    (7)  Administrative Director of the Division of
Industrial Accidents. 
   (9) 
    (8)  Chairperson of the State Water Resources Control
Board.
   (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. 13.    Section 11553.5 of the  
Government Code   is amended to read: 
   11553.5.  (a) Effective January 1, 1988, an annual salary of
seventy-nine thousand one hundred twenty-two dollars ($79,122) shall
be paid to the following:
   (1) Member of the Agricultural Labor Relations Board.
   (2) Member of the  State Energy Resources Conservation and
Development Commission   California Energy Board 
.
   (3) Member of the Public Utilities Commission.
   (4) Member of the Public Employment Relations Board.
   (5) Member of the Unemployment Insurance Appeals Board.
   (6) Member of the Workers' Compensation Appeals Board.
   (7) Member of the State Water Resources Control 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 cost-of-living salary increases provided
for state employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
   SEC. 14.    Section 12730 of the  
Government Code   is amended to read: 
   12730.  For the purposes of this chapter, the following
definitions apply:
   (a) "Community Services Block Grant" refers to the federal funds
and program established by the federal Community Services Block Grant
Program in the Omnibus Budget Reconciliation Act of 1981, as
contained in Public Law 97-35, as that law has been amended from time
to time and as currently codified as Section 9901 et seq. of Title
42 of the United States Code.
   (b) "Contract" means the written document incorporating the terms
and conditions under which the department agrees to provide financial
assistance to an eligible entity. Upon its cosigning by authorized
agents of the department and the eligible entity, and subsequent
approval by the Department of General Services pursuant to Section
10295 of the Public Contract Code, a contract shall be deemed to be
valid and enforceable.
   (c) "Director" means the Director of Community Services and
Development.
   (d) "Delegate agency" or "subcontractor" means a private nonprofit
organization or public agency that operates one or more projects
funded under this chapter pursuant to a contractual agreement with an
eligible entity.
   (e) "Department" means the Department of Community Services and
Development established pursuant to Article 8 (commencing with
Section 12085) of Chapter 1.
   (f) "Designation" means the formal selection of a proposed
community action agency by the director, as provided in Section
12750.1.
   (g) "Eligible entity" means an agency or organization, as defined
in Section 9902 of Title 42 of the United States Code, as amended,
and may include a private nonprofit organization or public agency
that operates one or more projects funded under this chapter pursuant
to a contract with the department.
   (h) "Eligible beneficiaries" means all of the following:
   (1) All individuals living in households with incomes not to
exceed the official poverty line according to the poverty guidelines
updated periodically in the Federal Register by the United States
Department of Health and Human Services, as defined in Section 9902
of Title 42 of the United States Code, as amended.
   (2) All individuals eligible to receive Temporary Assistance for
Needy Families under the state's plan approved under Public Law
104-193, the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, and (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code)
or assistance under Part A of Title IV of the Social Security Act (42
U.S.C. Sec. 601 et seq.).
   (3) Residents of a target area or members of a target group having
a measurably high incidence of poverty and that is the specific
focus of a project financed under this chapter.
   (i) "Financial assistance" means money provided by the department
to an eligible entity, pursuant to an approved contract, in order to
enable the eligible entity to accomplish its planned and approved
work program.
   (j) "Political subdivision" shall generally be deemed to mean
county government, with the following exceptions:
   (1) In any county that, prior to October 1, 1981, had more than
one designated community action agency, each unit of local government
that contained a designated community action agency shall continue
to operate as a "political subdivision" under this chapter.
   (2) Any county having fewer than 50,000 population according to
the most recent census available may be deemed by the department to
be part of a larger "political subdivision" comprising two or more
counties if the department determines that to do so would best serve
the purposes of this chapter, and may participate in the designation
process for a multicounty community action agency.
   (k) "Secretary" means the Secretary of the United States
Department of Health and Human Services.
   (l) "Standards of effectiveness" are the general standards,
derived from the purposes of this chapter and the assurances and
certifications made by the state to the secretary in the state plan,
as further stated in subdivision (g) of Section 12745, and as they
may be more specifically defined in regulation, toward which all
programs and projects funded under this chapter shall be directed and
against which they will be assessed.
   (m) "State plan" means the plan required to be submitted to the
secretary to secure California's allotment of Community Services
Block Grant funds, which shall be prepared and reviewed pursuant to
the requirements of this chapter.
   (n) "Uncapped area" means any county or portion of a county for
which no community action agency has been designated and recognized.

   (o) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date. 
   SEC. 15.    Section 12730 is added to the  
Government Code  , to read:  
   12730.  For the purposes of this chapter, the following
definitions apply:
   (a) "Community Services Block Grant" refers to the federal funds
and program established by the federal Community Services Block Grant
Program in the Omnibus Budget Reconciliation Act of 1981, as
contained in Public Law 97-35, as that law has been amended from time
to time and as currently codified as Section 9901 et seq. of Title
42 of the United States Code.
   (b) "Contract" means the written document incorporating the terms
and conditions under which the department agrees to provide financial
assistance to an eligible entity. Upon its cosigning by authorized
agents of the department and the eligible entity, and subsequent
approval by the Department of General Services pursuant to Section
10295 of the Public Contract Code, a contract shall be deemed to be
valid and enforceable.
   (c) "Director" means the Director of Community Services and
Development.
   (d) "Delegate agency" or "subcontractor" means a private nonprofit
organization or public agency that operates one or more projects
funded under this chapter pursuant to a contractual agreement with an
eligible entity.
   (e) "Department" means the Department of Community Services and
Development established pursuant to Article 8 (commencing with
Section 12085) of Chapter 1.
   (f) "Designation" means the formal selection of a proposed
community action agency by the director, as provided in Section
12750.1.
   (g) "Eligible entity" means an agency or organization, as defined
in Section 9902 of Title 42 of the United States Code, as amended,
and may include a private nonprofit organization or public agency
that operates one or more projects funded under this chapter pursuant
to a contract with the department.
   (h) "Eligible beneficiaries" means all of the following:
   (1) All individuals living in households with incomes not to
exceed the official poverty line according to the poverty guidelines
updated periodically in the Federal Register by the United States
Department of Health and Human Services, as defined in Section 9902
of Title 42 of the United States Code, as amended.
   (2) All individuals eligible to receive Temporary Assistance for
Needy Families under the state's plan approved under Public Law
104-193, the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, and (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code)
or assistance under Part A of Title IV of the Social Security Act (42
U.S.C. Sec. 601 et seq.).
   (3) Residents of a target area or members of a target group having
a measurably high incidence of poverty and that is the specific
focus of a project financed under this chapter.
   (i) "Financial assistance" means money provided by the department
to an eligible entity, pursuant to an approved contract, in order to
enable the eligible entity to accomplish its planned and approved
work program.
   (j) "Political subdivision" shall generally be deemed to mean
county government, with the following exceptions:
   (1) In any county that, prior to October 1, 1981, had more than
one designated community action agency, each unit of local government
that contained a designated community action agency shall continue
to operate as a "political subdivision" under this chapter.
   (2) Any county having fewer than 50,000 population according to
the most recent census available may be deemed by the department to
be part of a larger "political subdivision" comprising two or more
counties if the department determines that to do so would best serve
the purposes of this chapter, and may participate in the designation
process for a multicounty community action agency.
   (k) "Secretary" means the Secretary of the United States
Department of Health and Human Services.
   (l) "Standards of effectiveness" are the general standards,
derived from the purposes of this chapter and the assurances and
certifications made by the state to the secretary in the state plan,
as further stated in subdivision (g) of Section 12745, and as they
may be more specifically defined in regulation, toward which all
programs and projects funded under this chapter shall be directed and
against which they will be assessed.
   (m) "State plan" means the plan required to be submitted to the
secretary to secure California's allotment of Community Services
Block Grant funds, which shall be prepared and reviewed pursuant to
the requirements of this chapter.
   (n) "Uncapped area" means any county or portion of a county for
which no community action agency has been designated and recognized.
   (o) This section shall become operative on January 1, 2013. 
   SEC. 16.    Section 12802.5 of the  
Government Code   is amended to read: 
   12802.5.  The Governor may, with respect to the Resources Agency,
appoint  an Assistant   a Deputy  Secretary
for Energy Matters who may serve as Secretary  for 
 of the Natural  Resources designee on the  Energy
Resources Conservation and Development Commission  
California Energy Board  and an Assistant Secretary for Coastal
Matters who may serve as Secretary  for   of the
Natural  Resources designee on the State Coastal Commission.
   SEC. 17.    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 Forestry and Fire Protection, Conservation, Fish and
Game, Boating and Waterways, Parks and Recreation, Resources
Recycling and Recovery, and Water Resources; the State Lands
Commission; the Colorado River Board; the San Francisco Bay
Conservation and Development Commission; the Central Valley Flood
Protection Board;  the Energy Resources Conservation and
Development Commission;  the Wildlife Conservation Board;
the Delta Protection Commission; the Native American Heritage
Commission; the California Conservation Corps; the California Coastal
Commission; the State Coastal Conservancy; the California Tahoe
Conservancy; the Santa Monica Mountains Conservancy; the Coachella
Valley Mountains Conservancy; the
         San Joaquin River Conservancy; the San Gabriel and Lower Los
Angeles Rivers and Mountains Conservancy; the Baldwin Hills
Conservancy; the San Diego River Conservancy; and the Sierra Nevada
Conservancy.
   (b) No existing supplies, forms, insignias, signs, or logos shall
be destroyed or changed as a result of changing the name of the
Resources Agency to the Natural Resources Agency, and those materials
shall continue to be used until exhausted or unserviceable.
   SEC. 18.    Section 14450 of the  
Government Code   is amended to read: 
   14450.  The department, in preparing its research and development
program, shall consult with other parts of the transportation
industry, including the private and public sectors, in order to
obtain maximum input designed to develop a balanced multimodal
research and development program. The department shall also consult
with affected state agencies, including the Department of Motor
Vehicles, the State Air Resources Board,  the State Energy
Resources Conservation and Development Commission,  and the
Department of the California Highway Patrol.
   SEC. 19.    Section 14684 of the  
Government Code   is amended to read: 
   14684.  (a) The department, in consultation with the 
State Energy Resources Conservation and Development Commission
  Department of Energy  , shall ensure that solar
energy equipment is installed, no later than January 1, 2007, on all
state buildings and state parking facilities, where feasible. The
department shall establish a schedule designating when solar energy
equipment will be installed on each building and facility, with
priority given to buildings and facilities where installation is most
feasible, both for state building and facility use and consumption
and local publicly owned electric utility use, where feasible.
   (b) Solar energy equipment shall be installed where feasible as
part of the construction of all state buildings and state parking
facilities that commences after December 31, 2002.
   (c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on a building is available, and if
the solar energy equipment is cost-effective.
   (d)  No part of this   This  section
 shall be construed to   does not  exempt
the state from any applicable fee or requirement imposed by the
Public Utilities Commission.
   (e) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1. For purposes of Chapter
3.5 (commencing with Section 11340) of Part 1, including, but not
limited to, Section 11349.6, the adoption of the regulations shall be
considered by the Office of Administrative Law to be necessary for
the immediate preservation of the public peace, health, safety, and
general welfare. Notwithstanding the 120-day limit specified in
subdivision (e) of Section 11346.1, the regulations shall be repealed
180 days after their effective date, unless the department complies
with Chapter 3.5 (commencing with Section 11340) of Part 1 as
provided in subdivision (e) of Section 11346.1.
   (f) For purposes of this section, the following terms have the
following meanings:
   (1) "Cost-effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent. The present
value cost of the solar energy equipment does not include the cost of
unrelated building components. The department, in making the present
value assessment, shall obtain interest rates, discount rates, and
consumer price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits.
   (2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in Section 9604 of the Public
Utilities Code.
   (3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for electricity generation.
   SEC. 20.    Section 14684.1 of the  
Government Code   is amended to read: 
   14684.1.  (a) The department, in consultation with the 
State Energy Resources Conservation and Development Commission
  Department of Energy  , shall ensure that solar
energy equipment is installed, no later than January 1, 2009, on all
state buildings, state parking facilities, and state-owned swimming
pools that are heated with fossil fuels or electricity, where
feasible. The department shall establish a schedule designating when
solar energy equipment will be installed on each building and
facility, with priority given to buildings and facilities where
installation is most feasible.
   (b) Solar energy equipment shall be installed, where feasible, as
part of the construction of all state buildings and state parking
facilities for which construction commences on or after January 1,
2008.
   (c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on or adjacent to a building is
available, if the solar energy equipment is cost-effective, and if
funding is available from the state or another source.
   (d)  Any solar energy equipment installed pursuant to this section
shall meet applicable standards and requirements imposed by state
and local permitting authorities, including, but not limited to, all
of the following:
   (1) Certification by the Solar Rating  and  Certification
Corporation, which is a nonprofit third party supported by the 
United States  Department of Energy, or any other nationally
recognized certification agency.
   (2) All applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, such as
the Underwriters Laboratories.
   (3) Where applicable, the regulations adopted by the Public
Utilities Commission regarding safety and reliability.
   (e) This section does not exempt the state from the payment of any
applicable fee or requirement imposed by the Public Utilities
Commission.
   (f) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1. For purposes of that
chapter, including, but not limited to, Section 11349.6, the adoption
of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
Notwithstanding the 120-day limit specified in subdivision (e) of
Section 11346.1, the regulations shall be repealed 180 days after
their effective date, unless the department complies with Chapter 3.5
(commencing with Section 11340) of Part 1 as provided in subdivision
(e) of Section 11346.1.
   (g) Any solar energy equipment installed pursuant to this section
shall be subject to the provisions of the California Solar Rights Act
of 1978 (Chapter 1154 of the Statutes of 1978), as amended.
   (h) For purposes of this section, the following terms have the
following meanings:
   (1) "Cost-effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent. The present
value cost of the solar energy equipment does not include the cost of
unrelated building components. The department, in making the present
value assessment, shall obtain interest rates, discount rates, and
consumer price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits and the value of stable
energy costs.
   (2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in subdivision (d) of Section 9604
of the Public Utilities Code.
   (3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for the purpose of heat production, electricity
production, or simultaneous heat and electricity production.
   SEC. 21.    Section 15814.22 of the  
Government Code   is amended to read: 
   15814.22.  The Department of General Services, in consultation
with the  California Energy Resources Conservation and
Development Commission   Department of Energy  and
other state agencies and departments, shall develop a multiyear plan,
to be updated biennially, with the goal of exploiting all
practicable and cost-effective energy efficiency measures in state
facilities. The department shall coordinate plan implementation
efforts, and make recommendations to the Governor and the Legislature
to achieve energy efficiency goals for state facilities.
   SEC. 22.    Section 15814.23 of the  
Government Code   is amended to read: 
   15814.23.  The Department of General Services or each state agency
having jurisdiction shall ensure that all new state buildings are
designed and constructed to meet at least the minimum energy
efficiencies specified in standards adopted by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  pursuant to Section 25402 of the
Public Resources Code. In the design and construction of new state
buildings, the department or other responsible state agency shall
also consider additional state-of-the-art energy efficiency design
measures and equipment, beyond those required by the standards, that
are cost-effective and feasible.
   SEC. 23.    Section   15814.25 of the 
 Government Code   , as amended by Section 48 of Chapter
193 of the Statutes of 2004, is amended and renumbered to read:

    15814.25.   15814.24.1   Energy
conservation measures eligible for financing by kindergarten through
grade 12 schools shall be limited to those measures recommended
pursuant to an energy audit provided by the  State Energy
Resources Conservation and Development Commission  
Department of Energy  under its existing authority.
   SEC. 24.    Section 15814.30 of the  
Government Code   is amended to read: 
   15814.30.  (a) All new public buildings for which construction
begins after January 1, 1993, shall be models of energy efficiency
and shall be designed, constructed, and equipped with all energy
efficiency measures, materials, and devices that are feasible and
cost-effective over the life of the building or the life of the
energy efficiency measure, whichever is less.
   (b) In determining which energy efficiency measures, materials,
and devices are feasible and cost-effective over the life of the
building, the State Architect and the Department of General Services
shall consult with the  State Energy Resources Conservation
and Development Commission   Department of Energy 
.
   (c) For purposes of this section, "cost-effective" means that
savings generated over the life of the building or the life of the
energy efficiency measure, whichever is less, shall exceed the cost
of purchasing and installing the energy efficiency measures,
materials, or devices by not less than 10 percent.
   SEC. 25.    Section 15814.34 of the  
Government Code   is amended to read: 
   15814.34.  (a) The Legislature finds and declares all of the
following:
   (1) The state purchases a number of commodities, including, but
not limited to, lighting fixtures, heating, ventilation and
air-conditioning units, and copiers, that cumulatively account for a
significant portion of the energy consumed by state operations.
   (2) The state can realize significant energy savings and reduced
energy costs by purchasing brands or models of commonly used
commodities with low life cycle costs.
   (3) Commodities necessary for state operations may be purchased
directly by the state department or agency using the commodity, or
may be purchased by the Department of General Services on behalf of
other state departments or agencies.
   (4) In order to increase energy efficiency and reduce costs to the
taxpayers of the state, the state should make every reasonable
effort to identify and purchase those commodities that have the
lowest life cycle cost and meet the operational requirements of the
state.
   (b) The Department of General Services shall, on an ongoing basis,
do all of the following:
   (1) Identify commodities purchased by the department that,
individually or on a statewide basis, consume a significant amount of
energy.
   (2) For each commodity identified pursuant to paragraph (1),
determine the life cycle cost of the following:
   (A) The brand or model of the commodity purchased by the
department.
   (B) The brand or model of the commodity that has the lowest life
cycle cost, provided it is available for purchase by the state and
meets all operational specifications of the state.
   (3) Consult with the  Energy Resources Conservation and
Development Commission   Department of Energy  in
the development and revision of one or more methods of determining
the life cycle costs of commodities.
   (c) In order to assist other agencies and departments in
identifying commodities with the lowest life cycle costs, the
Department of General Services shall distribute the following to all
state agencies and departments:
   (1) A list of those commodities with the lowest life cycle costs,
as determined pursuant to paragraph (2) of subdivision (b).
   (2) The method or methods used by the Department of General
Services to determine the life cycle costs of commodities.
   (d) The method or methods used by the Department of General
Services to calculate the life cycle costs of commodities shall be
designed to be easily understood and used by purchasing agents and
other personnel in making purchasing decisions.
   (e) Notwithstanding any other provision of law, all state agencies
and departments shall purchase those commodities identified pursuant
to subdivision (b) that have the lowest life cycle costs and that
meet the applicable specifications, and shall make every reasonable
effort to identify and purchase other commodities with the lowest
life cycle costs.
   (f) "Life cycle cost" for the purposes of this section, means the
total cost of purchasing, installing, maintaining, and operating a
device or system during its reasonably expected life. It includes,
but is not necessarily limited to, capital costs, labor costs, energy
costs, and operating and maintenance costs.
   SEC. 26.    Section 16366.1 of the  
Government Code   is repealed.  
   16366.1.  The Legislature hereby finds and declares all of the
following:
   (a) The federal government is proposing significant and
fundamental changes in the structure and funding of social services
by eliminating or greatly reducing many categorical grants and
consolidating them into block grants to be administered by the state.

   (b) There has been little public debate or discussion on the
proposed funding cuts which will result in significant cuts in
programs which currently provide jobs, income, food, and medical care
to poor people.
   (c) There currently exist no state statutes, consistent with
federal statutes, for establishing need or directing the allocation
of resources to categories of client populations to be affected by
block grant efforts, and the state must act to so provide
immediately.
   (d) The uncertainty surrounding the substance of the block grant
proposals and the proximity of the 1981-82 federal fiscal year does
not allow the state the time necessary to develop fair and effective
service alternatives without serious disruptions of vital services
currently being offered to our needy residents.
   (e) In order to serve the unique needs of California's poor
people, the state should continue, for the current year, to offer the
services presently provided under federal categorical program
grants.
   (f) The Legislature must thoroughly review the use of federal
funds affecting special population "categorical" groups in the State
of California because of its commitment to maintain the efficient
delivery of vital services to the most needy persons in the state.
   (g) It is the intent of the Legislature that any provision of this
article which is inconsistent with federal law shall not be
operative.
   SEC. 27.    Section 16366.1 is added to the 
   Government Code   , to read:  
   16366.1.  The Legislature finds and declares all of the following:

   (a) For over 30 years, the federal government has funded programs
that help low-income households meet the rising costs of utilities,
including electricity, gas, and other household fuels, through block
grants and other targeted funding that lowers the energy burden and
increases the energy-related health and safety of low-income housing.

   (b) In California, it is calculated that low-income families spend
up to 16 percent of their household income on utilities, as compared
to 5 percent of the household income of median income families.
   (c) The increased energy burden for low-income families often
results in vulnerable populations making tough choices between
essential costs, such as food, transportation, and heating or cooling
their home in a safe manner.
   (d) Since 1975, California has administered the state's share of
these federal programs, including the Low-Income Home Energy
Assistance Program Block Grant (LIHEAP), provided for pursuant to the
Low-Income Home Energy Assistance Act of 1981, as amended (42 U.S.C.
Sec. 8621 et seq.), and the United States Department of Energy
Weatherization Assistance Program (DOE WAP), provided for pursuant to
Title IV of the Energy Conservation and Production Act (Public Law
94-385, as amended) and pursuant to the United States Housing and
Urban Development Residential Lead-Based Paint Hazard Reduction Act
of 1992 (Public Law 102-550, as amended), in conjunction with other
federal and state antipoverty programs that assist low-income
families with achieving self-sufficiency.
   (e) California has embarked on a new era of leadership to achieve
ambitious energy goals including energy conservation and efficiency,
alternative fuels, and reduce carbon emissions. A critical pathway to
achieving these goals is the strategic reorganization and
consolidation of various energy-related programs, to maximize the
outcomes of those individual programs in support of the state's
energy plans.
   (f) Consolidating the state's federally funded low-income energy
programs in a new Department of Energy can assist the state with
achieving the objectives of the state's energy plans through the
quantification of the energy conserved and carbon emissions reduced
as a result of the low-income weatherization activities.
   (g) The funds from the federal American Recovery and Reinvestment
Act of 2009 (Public Law 111-5) are appropriated to the Department of
Community Services and Development to implement the state's federally
funded low-income energy programs.
   (h) By reorganizing the state's low-income energy programs,
including LIHEAP and DOE WAP, into the new Department of Energy, it
is the intent of the Legislature to support the accomplishment of the
state's energy plans, while not diminishing or sacrificing the
primary federal purposes of these programs that are all of the
following:
   (1) Assist low-income households with reducing their energy burden
through cash assistance and weatherization.
   (2) Prioritize the needs of vulnerable populations including the
elderly, families with young children, and people dependent on
electrical medical equipment.
   (3) Help low-income families achieve self sufficiency.
   (i) It is the intent of the Legislature to have the Department of
Community Services and Development administer the federal low-income
energy programs through December 31, 2012, to ensure continuous
allocation and distribution of funds from the federal American
Recovery and Reinvestment Act of 2009. After that date, the federally
funded low-income energy programs should be administered by the
Department of Energy. 
   SEC. 28.    Section 16366.2 of the  
Government Code   is amended to read: 
   16366.2.  As used in this article  :   ,
"local service provider" means a public or private nonprofit entity,
as defined by federal law and regulation, that   provides
service directly to eligible beneficiaries.  
   (a) "Service provider" means any public or private nonprofit
agency which provides service directly to categorical populations.
 
   (b) "Consolidated program" means any program which the state has
the option to fund with the block grant.  
   (c) "Categorical populations" means those recipients of services
provided pursuant to a program listed in Section 16366.4. 

   (d) "Block grant funds" shall have the same meaning as defined in
federal law in existence on January 1, 1982. 
   SEC. 29.    Section 16366.3 of the  
Government Code   is repealed.  
   16366.3.  Federal block grant legislation provides that, for the
first fiscal year, states have the option to accept or reject
designated block grants. Consistent with this federal policy, the
state shall, prior to July 1, 1982, accept only those block grants
that meet all of the following criteria:
   (a) The block grant includes programs and services that the state
has previously administered.
   (b) The block grant program, and funding, has been previously
integrated into state and local service systems.
   (c) The block grant program does not require increased state or
local matching funds.
   (d) There is a distinct advantage as a result of state assumption.

   SEC. 30.    Section 16366.35 of the   
 Government Code   is amended to read: 
   16366.35.   Counties   Local service
providers designated by the state  shall be granted maximum
flexibility in administering federal categorical and block grant
programs to the extent permitted by state planning requirements. It
is the intent of the Legislature in enacting this section to provide
 counties   the local service providers 
maximum flexibility in setting priorities in these programs for any
reduced funding  consistent with federal and state law and policy
 .
   SEC. 31.    Section 16366.4 of the  
Government Code   is repealed.  
   16366.4.  (a) Based on the criteria specified in Section 16366.3,
the Legislature directs the state to assume administrative
responsibility for the following federal block grants in the 1981-82
state fiscal year:
   (1) Low-income home energy assistance.
   (2) Social services (pursuant to Title XX of the Social Security
Act).
   (b) Block grant programs not meeting the criteria specified in
Section 16366.3, which shall not be assumed by the state until July
1, 1982, include all of the following:
   (1) Preventive health and health services.
   (2) Maternal and child health services.
   (3) Primary care.
   (4) Alcohol, drug abuse, and mental health services.
   (5) Community services.
   (6)  Community development. 
   SEC. 32.    Section 16366.5 of the  
Government Code   is repealed.  
   16366.5.  For the 1981-82 state fiscal year, block grants which
the state chooses to accept and administer shall be disbursed in
grant form and shall be governed by the provisions of this section.
The provisions of this section, however, shall apply only to the
amount retained in the block and not to the amount transferred into
another block, as permitted by federal law. The Governor may transfer
funds between block grants only in an amount authorized by the
Legislature.
   (a) The Legislature, in cooperation with the appropriate state
departments and service providers, shall undertake a study to
evaluate the current levels of administrative costs incurred under
the Title XX block grant and designate methods for determining and
establishing acceptable ceilings for those costs.
   (b) For the Low-Income Energy Assistance Block Grant, the amount
spent during the 1981-82 state fiscal year by the state and by
service providers for program administration of all federal
categorical and block grant programs shall not exceed the percentage
levels of administrative costs incurred in the 1980-81 fiscal year
which were approved by the Legislature and reflected in each service
provider grant in effect on July 1, 1981. In no event shall these
administrative costs exceed 5 percent.
   (c) The state shall maintain its level of funding for categorical
programs consolidated into federal block grants. 
   SEC. 33.    Section 16366.6 of the  
Government Code   is amended to read: 
   16366.6.  (a) The funds shall be used to serve  the
populations defined in the federal statutes and regulations which
governed the federal categorical programs as of January 30, 1981, and
which are consolidated into the block grants  
beneficiaries and households, as defined in the federal laws and
regulations establishing
      the block grant programs or as further defined in this chapter
 .
   (b) Federal funds shall be received by the Controller and held in
a separate account of the federal trust fund in accordance with state
law governing the administration of federal funds.
   (c) The funds shall be disbursed to 1980-81 fiscal year grantees
of categorical grant programs consolidated into the federal block
grants in an amount which reflects the overall change in federal
categorical funds which were available in the 1980-81 federal fiscal
year.
   SEC. 34.    Section 16366.7 of the  
Government Code   is amended to read: 
   16366.7.   Since federal block grant funds were reduced by
an average of 26 percent during the 1981-82 fiscal year and are
proposed for further reductions during the 1982-83 fiscal year, the
Legislature declares that the state's administrative costs and
processes must be reduced in order to ensure that maximum funds are
available to continue essential direct human services. 
    Therefore, notwithstanding   Notwithstanding
 any other provision of law  , all of the following
state procedures shall be implemented within 60 days after the
effective date of this section  :
   (a) All state agencies, offices, or departments administering
federal block grant funds shall have the authority, subject to the
approval of the Department of Finance, to grant advance payments of
federal funds to contractors or local governmental agencies in any
amounts as the administering state department deems necessary for
startup or continued provision of services or program operation.
   (b) Departmental service contracts utilizing federal block grant
funds shall be exempt from approval by the Department of Finance and
the State Department of General Services prior to their execution.
Instead, the proper state fiscal controls over federal block grant
funds shall be insured by all of the following provisions:
   (1) State departments that award block grant funds to local
agencies shall permit, as appropriate, to the extent that federal
funds are available for this purpose, local agencies to provide for
federally mandated financial and compliance audits of block grant
awards in accordance with the federal audit provisions and standards
promulgated by the Comptroller General of the United States, and
consistent with the department's approved audit plan.
   (2) The Department of Finance, in consultation with the
Controller, shall establish fiscal reporting requirements for the
departments to use on a quarterly basis with all providers.
   (3) In the event a contractor has not engaged in a contract for
these program purposes before with the state, state administering
departments shall have the authority to conduct a preaudit or fund a
preaudit by the Controller in order to certify the ability of the
contractor to administer the funds.
   (4) The State Auditor shall provide audit findings regarding each
block grant to the Legislature no later than May 1 of each year.
   (c) Each administering state department shall develop standard
definitions for units of service, costs per unit of service, citizen
participation processes, and due process notification for clients in
relation to diminishing federal funds  within 60 days after
the effective date of this section  and shall incorporate
all of these elements into each agreement or contract.
   (d)  To the extent possible, compliance  
Compliance  with this section shall be consistent with federal
policies and procedures. Reports required under this section shall be
combined, where practical, with any other similar reports required
by the Legislature and by the federal government.
   SEC. 35.    Section 16366.8 of the  
Government Code   is repealed.  
   16366.8.  For those programs for which the state does not assume
full administrative responsibility under the block grant
consolidations reflected in the federal Omnibus Budget Reconciliation
Act of 1981, but for which state agencies have continued
administrative and funding responsibility, as reflected in the Budget
Act of 1981, the following criteria shall be used in allocating any
reduced levels of federal funds:
   (a) The funds shall be utilized for the same purposes as
discontinued federal grants.
   (b) The funds shall serve the special populations which meet the
criteria of need required by federal categorical grant legislation
and regulation.
   (c) Funds shall be administered by those state agencies currently
administering the funds.
   (d) To the extent that federal funds are allocated to counties on
the basis of county plan submissions to appropriate state agencies,
the county plans shall be amended to reflect reduced federal funding.
The county shall hold at least one public hearing regarding the
proposed changes to the county plans affected. With respect to any
plans which are required to be approved by the state, the amended
plans shall be approved by the appropriate state agencies and shall
comply with the criteria set forth in this section. The approval
shall be conducted and completed within 30 days to prevent
interruptions in services.
   (e) The amount expended in the 1981-82 state fiscal year by the
state and by service providers for program administration of all
federal categorical and block grant programs shall not exceed the
percentage levels of administrative costs approved by the Legislature
for departments and providers as of July 1, 1981, and reflected in
each service provider grant in effect on that date.
   If a state department finds that compliance with the provisions of
this section disproportionately burdens certain programs or
categories of clients, the department may withhold up to 5 percent of
the total amount awarded to the department for each such categorical
grant in order to equalize service levels. 
   SEC. 36.    Section 16366.9 of the  
Government Code   is repealed.  
   16366.9.  (a) The 1981-82 state fiscal year shall be a transition
year during which the Legislature shall require certain critical
reviews and reports as it deems necessary to assist in developing the
policies to govern the state's assumption of both federal
categorical and block grants as contained in the federal Omnibus
Budget Reconciliation Act of 1981. The Governor shall instruct state
agencies to cooperate fully with the Legislature in complying with
this article.
   (b) All departments affected shall prepare a separate summary of
programs, funding levels, contracting progress, and clients affected
by funding reductions during the 1981-82 state fiscal year and
separately identify the transition programs for which they would have
any policy or administrative responsibilities no later than October
15, 1981. The summary of the 1981-82 state fiscal year funding
reductions shall be submitted to the Joint Legislative Budget
Committee and to the fiscal committee of each house.
   (c) The Governor shall submit all relevant information, including,
but not limited to, program identification, estimates of the types,
levels, and distribution of clients affected, and estimates of
federal funding levels as part of the proposed budget for the 1982-83
state fiscal year, and shall separately highlight and summarize this
information in the proposed budget, incorporating any policy
recommendations for the review of the Legislature.
   (d) The Governor shall submit for the review of the Legislature at
the same time a proposal for the structural and administrative
organization of all federal programs to be administered by the state
as of July 1, 1982. 
   SEC. 37.    Section 16367.5 of the  
Government Code   is amended to read: 
   16367.5.  The Department of Community Services and Development
shall receive and administer the federal Low-Income Home Energy
Assistance Program Block Grant, provided for pursuant to the
Low-Income Home Energy Assistance Act of 1981, as amended (42 U.S.C.
Sec. 8621 et seq.). The department shall afford local service
providers maximum flexibility and control, within the parameters of
federal and state law, in the planning, administration, and delivery
of Low-Income Home Energy Assistance Program Block Grant services.
Local service providers shall be defined as private, nonprofit, and
public agencies designated in accordance with Public Law 97-35, as
amended. The formation of service regions beyond those that were in
place in 1995, or those that were in place in Los Angeles County in
January 1997, shall occur only with the concurrence of service
providers within the proposed regions. The department shall allocate
funds received as follows: 
   (a) For federal fiscal year 1998, up to 7.3 percent of the state's
total federal allocation for the Low-Income Home Energy Assistance
Program shall be retained by the Department of Community Services and
Development for purposes of overall planning and administration. The
department shall spend at least 2.3 percent of this 7.3 percent on
activities to improve the administrative efficiency of the program.
At least 2.7 percent of the state's total federal allocation of the
Low-Income Home Energy Assistance Program shall be allocated to local
service providers for purposes of planning and administration.
 
   For federal fiscal year 1999, up to 6 percent of the state's total
federal allocation of the Low-Income Home Energy Assistance Program
shall be retained by the Department of Community Services and
Development for purposes of overall planning and administration. The
department shall spend at least 1 percent of this 6 percent on
activities to improve the administrative efficiency of the program.
At least 4 percent of the state's total federal allocation for the
Low-Income Home Energy Assistance Program shall be allocated to local
service providers for purposes of planning and administration.
 
   Beginning in federal fiscal year 2000, up to 5 percent of the
state's total federal allocation for the Low-Income Home Energy
Assistance Program shall be retained by the Department of Community
Services and Development for purposes of overall planning and
administration. At least 
    (a)     Up to  5 percent of the state'
s total federal allocation for the Low-Income Home Energy Assistance
Program shall be allocated to local service providers for purposes of
planning and administration. 
   Upon achievement of administrative efficiencies, or no later than
June 30, 2001, the department and the local service providers
committee established pursuant to subdivision (j) shall examine the
appropriate split of administrative funding between the state and
local services providers necessary to achieve the intent of federal
law regarding the Low-Income Home Energy Assistance Program. The
department shall not retain more than 5 percent of the state's total
federal allocation for the Low-Income Home Energy Assistance Program.

   (b) Services under this section shall be available to households
in which one or more individuals are receiving:
   (1) Temporary Assistance for Needy Families under the state's plan
approved under Public Law 104-193, the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.
   (2) Supplemental Security Income payments under Title XVI of the
federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter
3 (commencing with Section 12000) of Part 3 of Division 9 of the
Welfare and Institutions Code.
   (3) County general assistance under Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
   (4) Food stamps received under the Food Stamp Act of 1977 and
pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of
Division 9 of the Welfare and Institutions Code.
   (5) Payments under Section 415, 521, 541, or 542 of Title 38 of
the United States Code, or under Section 306 of the Veterans' and
Survivors' Pension Improvement Act of 1978. 
   (6) Households with incomes that do not exceed the greater of:
 
   (A) An amount equal to 150 percent of the poverty level for this
state.  
   (B) An amount equal to 60 percent of the state median income,
except that no household may be excluded from eligibility solely on
the basis of household income if that income is less than 110 percent
of the poverty level for this state, but priority may be given to
those households with the highest home energy costs or needs in
relation to household income. 
   (c) An amount of not less than 15 percent and up to the maximum
allowed by federal law of the total federal allocation shall be
allocated for weatherization services for eligible individuals. For
each program year, to the extent that the state is eligible, the
Department of Community Services and Development shall apply to the
appropriate federal agencies for any waivers that may be necessary to
ensure that the amount available for the purposes of this
subdivision will be the maximum amount allowable under federal law.
For the purposes of this subdivision, weatherization shall include
all energy conservation measures and energy efficient appliances that
are cost-effective and improve energy efficiency. The department
shall allocate 5 percent of the weatherization program allocation to
local service providers for outreach and related activities.
   (d) At the discretion of local service providers, the state shall
allocate the maximum amount allowable under federal law to local
service providers to provide services that encourage and enable
households to reduce their home energy needs, thus reducing the need
for energy assistance, including needs assessments, counseling, and
assistance with energy vendors, in accordance with Section 2605(b)
(16) of Public Law 97-35, as amended.
   (e) Based on data from prior years, a reasonable amount of
available funds, as determined jointly by the department and the
local service providers, shall be reserved until March 15 of each
program year for the Energy Crisis Intervention Program. Local
service providers shall submit proposed funding levels with
supporting data to the department in a timely manner for inclusion in
the state plan. The department shall approve local funding requests
that are determined to be in compliance with federal law. These funds
shall only be used for emergency assistance to eligible individuals
for programs specified in this subdivision, who give evidence of one
or more of the following conditions:
   (1) Proof of utility shutoff notice.
   (2) Proof of energy termination.
   (3) Insufficient funds to establish a new energy account.
   (4) Insufficient funds to pay a delinquent utility bill.
   (5) Insufficient funds to pay the cost of space heating devices
where no alternative source of space heating is reasonably available.

   (6) Insufficient funds to pay for essential firewood, oil, or
propane.
   (7) Insufficient funds to pay for the cost of emergency repairs to
heating and cooling units, the emergency replacement of heating and
cooling units, or both.
   (8) Insufficient funds to pay energy costs for a household where a
household member's medical condition requires use of life support or
climate and temperature control systems.
   (9) Other conditions that may be included in the state plan.

   The 
    (f)    (1)     The 
energy crisis intervention program shall not include advocacy,
community mobilization, or community planning. After March 15 of each
program year, local administrative agencies shall have the option of
continuing to offer energy crisis intervention services or of
reallocating a portion of or all unspent energy crisis intervention
funds into direct assistance payment services. 
   The 
    (2)     The  department shall allocate
5 percent of the energy crisis intervention program allocation to
the local service providers for outreach and related services.

   The Department of Community Services and Development 
    (3)     The department  shall retain
all funds associated with Energy Crisis Intervention Program payments
for gas and electric utility service, and shall make payments for
eligible households' gas or electric service accounts directly to the
utilities. The department may use alternative payment methods when
direct payments to the utilities have not been arranged. 
   (f) 
    (g)  The remainder of the total federal allocation shall
be utilized for aid for home energy costs for direct assistance
payments. The department shall retain all funds associated with Home
Energy Assistance Program direct assistance payments for gas and
electric utility service, and shall make payments for eligible
households' gas or electric service accounts directly to the
utilities. The department may use alternative payment methods when
direct payments to the utilities have not been arranged. 
   (g) 
    (h)  The Department of Community Services and
Development shall contract with local public or private nonprofit
agencies, or both, to provide outreach, intake, and other activities
to enroll eligible individuals in the program components prescribed
by this section. 
   (h) 
    (i)  The program components provided for in this section
shall include activities to enroll households that have the highest
home energy needs as determined by taking into account both the
energy burden of these households, and the unique situation of these
households that results from having members of vulnerable
populations, including very young children, individuals with
disabilities, and frail older individuals, as provided for by Section
2603(3) of Public Law 97-35, as amended, and to educate recipients
about general energy conservation practices and about the
availability of state and  federal  utility programs for
free weatherization of low-income homes. 
   (i) 
    (j)  The department shall allocate 5 percent of the
direct assistance payment funds to the local service providers for
outreach and related services in operating the direct home energy
assistance payment program. 
   (j) 
    (k)  The department shall establish a local service
providers committee to act in an advisory capacity in the development
of the annual Low-Income Home Energy Assistance Program state plan.
The membership of the committee shall include one voting
representative chosen by each local service provider that has a
Low-Income Home Energy Assistance Program contract with the state and
one representative of each interested utility company. Each local
service provider may, at its option, assign its vote in writing to
another entity, such as a provider association, to represent its
interests. 
   (k) By June 30, 1998, the Department of Community Services and
Development shall submit a plan to the Health and Welfare Agency to
reduce state administrative costs by January 1, 2000, to no more than
5 percent of the total federal allocation for the Low-Income Home
Energy Assistance Program. This plan shall be developed in
consultation with the local service providers committee and shall
include measurable objectives, milestones, and timelines. 

   It shall also include, among other strategies, a plan to automate
a substantial portion of the Low-Income Home Energy Assistance
Program by no later than January 1, 2001. The department shall
consult with the Department of Finance and the Health and Welfare
Data Center in developing this automation technology. 

   The Department of Community Services and Development shall provide
quarterly status updates to the Health and Welfare Agency and the
local service providers committee established pursuant to subdivision
(j) on progress made in implementing the plans and achieving the
objectives and milestones specified in this subdivision. On an annual
basis, from the year 1999 to the year 2001, the department shall
appear before the Legislature and provide a status report on its
efforts to achieve increased administrative efficiency. 

   (l) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date. 
   SEC. 38.    Section 16367.5 is added to the 
   Government Code   , to read:  
   16367.5.  (a) As used in this section, "department" means the
Department of Energy established pursuant to Section 25200 of the
Public Resources Code.
   (b) The department shall receive and administer the federal
Low-Income Home Energy Assistance Program Block Grant, provided for
pursuant to the Low-Income Home Energy Assistance Act of 1981, as
amended (42 U.S.C. Sec. 8621 et seq.). The department shall afford
local service providers maximum flexibility and control, within the
parameters of federal and state law, in the planning, administration,
and delivery of Low-Income Home Energy Assistance Program Block
Grant services. Local service providers shall be defined as private,
nonprofit, and public agencies designated in accordance with Public
Law 97-35, as amended. The formation of service regions beyond those
that were in place in 1995, or those that were in place in Los
Angeles County in January 1997, shall occur only with the concurrence
of service providers within the proposed regions. The department
shall allocate funds received as follows:
   (1) Up to 5 percent of the state's total federal allocation for
the Low-Income Home Energy Assistance Program shall be retained by
the department for purposes of overall planning and administration.
Five percent of the state's total federal allocation for the
Low-Income Home Energy Assistance Program shall be allocated to local
service providers for purposes of planning and administration.
   (2) Services under this section shall be available to households
in which one or more individuals are receiving:
   (A) Temporary Assistance for Needy Families under the state's plan
approved under Public Law 104-193, the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.
   (B) Supplemental Security Income payments under Title XVI of the
federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter
3 (commencing with Section 12000) of Part 3 of Division 9 of the
Welfare and Institutions Code.
   (C) County general assistance under Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
   (D) Food stamps received under the Food Stamp Act of 1977 and
pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of
Division 9 of the Welfare and Institutions Code.
   (E) Payments under Section 415, 521, 541, or 542 of Title 38 of
the United States Code, or under Section 306 of the Veterans' and
Survivors' Pension Improvement Act of 1978.
   (F) Households with incomes that do not exceed the greater of an
amount equal to the maximum percent of the federal poverty level or
state median income, as permitted by the federal block grant, except
that no household may be excluded from eligibility solely on the
basis of household income if that income is less than 110 percent of
the poverty level for this state, but priority may be given to those
households with the highest home energy costs or needs in relation to
household income.
   (3) An amount of not less than 15 percent and up to the maximum
allowed by federal law of the total federal allocation shall be
allocated for weatherization services for eligible individuals. For
each program year, to the extent that the state is eligible, the
department shall apply to the appropriate federal agencies for any
waivers that may be necessary to ensure that the amount available for
the purposes of this subdivision will be the maximum amount
allowable under federal law. For the purposes of this subdivision,
weatherization shall include all energy conservation measures and
energy efficient appliances that are cost effective and improve
energy efficiency. The department shall allocate 5 percent of the
weatherization program allocation to local service providers for
outreach and related activities.
   (4) At the discretion of local service providers, the state shall
allocate the maximum amount allowable under federal law to local
service providers to provide services that encourage and enable
households to reduce their home energy needs, thus reducing the need
for energy assistance, including needs assessments, counseling, and
assistance with energy vendors, in accordance with Section 2605(b)
(16) of Public Law 97-35, as amended.
   (5) Based on data from prior years, a reasonable amount of
available funds, as determined jointly by the department and the
local service providers, shall be reserved until March 15 of each
program year for the Energy Crisis Intervention Program. Local
                                         service providers shall
submit proposed funding levels with supporting data to the department
in a timely manner for inclusion in the state plan. The department
shall approve local funding requests that are determined to be in
compliance with federal law. These funds shall only be used for
emergency assistance to eligible individuals for programs specified
in this subdivision, who give evidence of one or more of the
following conditions:
   (A) Proof of utility shutoff notice.
   (B) Proof of energy termination.
   (C) Insufficient funds to establish a new energy account.
   (D) Insufficient funds to pay a delinquent utility bill.
   (E) Insufficient funds to pay the cost of space heating devices
where no alternative source of space heating is reasonably available.

   (F) Insufficient funds to pay for essential firewood, oil, or
propane.
   (G) Insufficient funds to pay for the cost of emergency repairs to
heating and cooling units, the emergency replacement of heating and
cooling units, or both.
   (H) Insufficient funds to pay energy costs for a household where a
household member's medical condition requires use of life support or
climate and temperature control systems.
   (I) Other conditions that may be included in the state plan.
   (6) (A) The energy crisis intervention program shall not include
advocacy, community mobilization, or community planning. After March
15 of each program year, local administrative agencies shall have the
option of continuing to offer energy crisis intervention services or
of reallocating a portion of or all unspent energy crisis
intervention funds into direct assistance payment services.
   (B) The department shall allocate 5 percent of the energy crisis
intervention program allocation to the local service providers for
outreach and related services.
   (C) The department shall retain all funds associated with Energy
Crisis Intervention Program payments for gas and electric utility
service, and shall make payments for eligible households' gas or
electric service accounts directly to the utilities. The department
may use alternative payment methods when direct payments to the
utilities have not been arranged.
   (7) The remainder of the total federal allocation shall be
utilized for aid for home energy costs for direct assistance
payments. The department shall retain all funds associated with Home
Energy Assistance Program direct assistance payments for gas and
electric utility service, and shall make payments for eligible
households' gas or electric service accounts directly to the
utilities. The department may use alternative payment methods when
direct payments to the utilities have not been arranged.
   (8) The department shall contract with local public or private
nonprofit agencies, or both, to provide outreach, intake, and other
activities to enroll eligible individuals in the program components
prescribed by this section.
   (9) The program components provided for in this section shall
include activities to enroll households that have the highest home
energy needs as determined by taking into account both the energy
burden of these households, and the unique situation of these
households that results from having members of vulnerable
populations, including very young children, individuals with
disabilities, and frail older individuals, as provided for by Section
2603(3) of Public Law 97-35, as amended, and to educate recipients
about general energy conservation practices and about the
availability of state and federal utility programs for free
weatherization of low-income homes.
   (10) The department shall allocate 5 percent of the direct
assistance payment funds to the local service providers for outreach
and related services in operating the direct home energy assistance
payment program.
   (11) The department shall establish a local service providers
committee to act in an advisory capacity in the development of the
annual Low-Income Home Energy Assistance Program state plan. The
membership of the committee shall include one voting representative
chosen by each local service provider that has a Low-Income Home
Energy Assistance Program contract with the state and one
representative of each interested utility company. Each local service
provider may, at its option, assign its vote in writing to another
entity, such as a provider association, to represent its interests.
   (c) This section shall become operative on January 1, 2013. 
   SEC. 39.    Section 16367.6 of the  
Government Code   is amended to read: 
   16367.6.  (a) The Department of  Economic Opportunity
  Energy  shall receive and administer all state
and federal funds which are allocated for programs to provide energy
assistance to qualified low-income individuals only, except for those
funds which are allocated to, and distributed by, the California
Energy Extension Service.
   (b)  No later than November 1, 1984, the  
The  Department of  Economic Opportunity  
Energy  shall promulgate a comprehensive procedure to assure
that those energy assistance funds are utilized in the most
productive and efficient manner, including a distribution system
whereby all funds allocated for direct assistance payments are
distributed by state and local agencies directly to the electrical or
gas corporations or other suppliers of energy on behalf of the
qualified low-income individuals or by two-party checks made payable
to both the energy supplier and the individual. In establishing this
system, the Department of  Economic Opportunity 
 Energy  shall consult with representatives of electrical or
gas corporations or other suppliers of energy and with local
agencies that participate in distributing assistance funds.
   The Department of  Economic Opportunity  
Energy  shall have the discretion to adjust payments to the
energy supplier or the individual or to make direct payments to the
individual for payment to an energy supplier in special or unique
circumstances not otherwise provided for in this section.
   SEC. 40.    Section 16367.61 of the   
 Government Code   is repealed.  
   16367.61.  In order to make administrative improvements in the
Low-Income Home Energy Assistance Program components provided for in
subdivisions (c), (d), and (e) of Section 16367.5, the Department of
Economic Opportunity shall contract, during the 1986 program year,
with nonprofit organizations to implement pilot programs and
demonstration projects including, but not limited to, all of the
following:
   (a) Decentralization of the Low-Income Home Energy Assistance
Program providing benefits to eligible individuals.
   (b) A trust account system for the payment of utility companies by
contractors on behalf of eligible individuals.
   (c) An electronic transfer payment system between the Department
of Economic Opportunity, commercial banks, local administering
agencies, and participating energy suppliers.
   (d) Analyze the Department of Economic Opportunity operated
weatherization programs provided for under subdivision (c) of Section
16367.5, using utility-funded programs as models, and recommend
techniques to increase efficiency and provide maximum energy savings
for dollars spent. 
   SEC. 41.    Section 16367.65 of the   
 Government Code   is repealed.  
   16367.65.  The Department of Economic Opportunity may enter into
an agreement with the California Energy Extension Service to provide
technical assistance and outreach programs to low-income individuals
and the Department of Economic Opportunity energy agencies which
shall include, but not be limited to, all of the following:
   (a) Energy education programs for recipients of low-income energy
assistance.
   (b) Energy education to senior citizens, disabled individuals,
Native Americans, seasonal migrant workers, and rural communities.
   (c) Training programs and technical assistance for community
action agencies and community-based organizations and other groups
which administer the low-income home energy assistance programs at
the local level. 
   SEC. 42.    Section 16367.7 of the  
Government Code   is repealed.  
   16367.7.  Whenever the Department of Economic Opportunity does not
allocate Energy Crisis Intervention Program funds on schedule to a
community-based organization or community action agency and the
organization or agency finds it necessary to obtain a loan in order
to cover its program costs, the department shall pay any interest
charges on the loan out of the funds budgeted for the administration
of the department, unless the failure to allocate is due to an
incomplete application or report and the department promptly gives
notice of this fact to the organization or agency.
   Any interest payable by the department pursuant to this section
shall be paid by the Controller to the organization or agency from
available funds in the department's budget. If any interest charge is
paid by the department pursuant to this section, the department
shall report this fact to the Legislature and describe what actions
are being taken to prevent additional payments of interest charges.

   SEC. 43.    Section 16367.8 of the  
Government Code   is repealed.  
   16367.8.  Any advisory agency, commission, or other entity
established by any city, county, or special district relative to the
application for or use of federal block grant funds shall include in
its membership older persons, as defined by Section 9103 of the
Welfare and Institutions Code, in such numbers as to proportionately
reflect in the membership of the agency, commission, or other entity,
as nearly as possible, the population of persons 60 years of age or
older residing within the jurisdiction of the city, county, or
special district as indicated in the most recent national decennial
census. The older persons appointed pursuant to this section shall be
drawn, where possible, from the membership of existing agencies,
commissions, or other entities established by the city, county, or
special district relative to the subject of aging. 
   SEC. 44.    Section 66645 of the  
Government Code   is amended to read: 
   66645.  (a) In addition to the provisions of Sections 25302,
25500,  25507, 25508, 25514, 25516.1,  25519, 25523,
and 25526 of the Public Resources Code, the provisions of this
section shall apply to the commission and the  State Energy
Resources Conservation and Development Commission  
Department of Energy  with respect to matters within the
statutory responsibility of the latter.
   (b) After one or more public hearings, and prior to January 1,
1979, the commission shall designate those specific locations within
the Suisun Marsh, as defined in Section 29101 of the Public Resources
Code, or the area of jurisdiction of the commission, where the
location of a facility, as defined in Section 25110 of the Public
Resources Code, would be inconsistent with this title or Division 19
(commencing with Section 29000) of the Public Resources Code. The
following locations, however, shall not be so designated: (1) any
property of a utility that is used for such a facility or will be
used for the reasonable expansion thereof; (2) any site for which a
notice of intention to file an application for certification has been
filed pursuant to Section 25502 of the Public Resources Code prior
to January 1, 1978, and is subsequently approved pursuant to Section
22516 of the Public Resources Code; and (3) the area east of
Collinsville Road that is designated for water-related industrial use
on the Suisun Marsh Protection Plan Map. Each designation made
pursuant to this section shall include a description of the
boundaries of those locations, the provisions of this title or
Division 19 (commencing with Section 29000) of the Public Resources
Code with which they would be inconsistent, and detailed findings
concerning the significant adverse impacts that would result from
development of a facility in the designated area. The commission
shall consider the conclusions, if any, reached by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  in its most recently promulgated
comprehensive report issued pursuant to Section 25309 of the Public
Resources Code. The commission also shall request the assistance of
the  State Energy Resources Conservation and Development
Commission   Department of Energy  in carrying out
the requirements of this section. The commission shall transmit a
copy of its report prepared pursuant to this subdivision to the State
Energy Resources Conservation and Development Commission.
   (c)  The commission shall revise and update the designations
specified in subdivision (b) not less than once every five years.
 The provisions of subdivision (b) shall not apply to any
sites and related facilities specified in any notice of intention to
file an application for certification filed pursuant to Section 25502
of the Public Resources Code prior to designation of additional
locations made by the commission pursuant to this subdivision.

   (d) Whenever the  State Energy Resources Conservation and
Development Commission   California Energy Board within
the Department of Energy  exercises its siting authority and
undertakes proceedings pursuant to the provisions of Chapter 6
(commencing with Section 25500) of Division 15 of the Public
Resources Code with respect to any thermal  or solar nonthermal
 powerplant  of 50 megawatts or greater  or
transmission line to be located, in whole or in part, within the
Suisun Marsh or the area of jurisdiction of the commission, the
commission shall participate in those proceedings and shall receive
from the  State Energy Resources Conservation and Development
Commission   Department of Energy  any notice of
intention to file an application for certification of a site and
related facilities within the Suisun Marsh or the area of
jurisdiction of the commission. The commission shall analyze 
each notice of intention   an application for
certification  and, prior to commencement of the hearings
conducted pursuant to Section  25513   25221
 of the Public Resources Code, shall forward to the 
State Energy Resources Conservation and Development Commission
  Department of Energy  a written report on the
suitability of the proposed site and related facilities specified in
that notice. The commission's report shall contain a consideration
of, and findings regarding, the following:
   (1) If it is to be located within the Suisun Marsh, the
consistency of the proposed site and related facilities, with
 the provisions of  this title and Division 19
(commencing with Section 29000) of the Public Resources Code, the
policies of the Suisun Marsh Protection Plan (as 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  the provisions of  this title and
the San Francisco Bay Plan.
   (3) The degree to which the proposed site and related facilities
could reasonably be modified so as to be consistent with this title,
Division 19 (commencing with Section 29000) of the Public Resources
Code, the Suisun Marsh Protection Plan, or the San Francisco Bay
Plan.
   (4)  Such   Any  other matters as the
commission deems appropriate and necessary to carry out Division 19
(commencing with Section 29000) of the Public Resources Code.
   SEC. 45.    Section 66646 of the  
Government Code   is amended to read: 
   66646.  Notwithstanding any other provision of this title, except
subdivisions (b) and (c) of Section 66645, and notwithstanding any
provision of Division 19 (commencing with Section 29000) of the
Public Resources Code, new or expanded  thermal 
electric generating plants may be constructed within the Suisun
Marsh, as defined in Section 29101 of the Public Resources Code, or
the area of jurisdiction of the commission, if the proposed site has
been determined, pursuant to  the provisions of 
Section  25516.1  25523  of the Public
Resources Code, by the  State Energy Resources Conservation
and Development Commission   California Energy Board
within the Department of Energy  to have greater relative merit
than available alternative sites and related facilities  for
an applicant's service area which have been determined to be
acceptable pursuant to the provisions of Section 25516 of the Public
Resources Code  .
   SEC. 46.    Section 3805.5 of the   Public
Resources Code   is repealed.  
   3805.5.  "Commission" means the State Energy Resources
Conservation and Development Commission. 
   SEC. 47.    Section 3806.5 is added to the  
Public Resources Code   , to read:  
   3806.5.  "Department" means the Department of Energy. 
   SEC. 48.    Section 3808 of the   Public
Resources Code   is amended to read: 
   3808.  "Geothermal resources" means geothermal resources
designated by the United States Geological Survey or the Department
of Conservation, or by both.
   The  department   Department of Conservation
 shall periodically review, and revise as necessary, its
designation of geothermal resource areas and shall transmit any
changes to the  State Energy Resources Conservation and
Development Commission   department  .
   SEC. 49.    Section 3810 of the   Public
Resources Code   is amended to read: 
   3810.  (a) (1) "Award repayment or program reimbursement
agreement," including a "royalty agreement," as specified in
subdivision (b), means a method used at the discretion of the
 commission   department  to determine and
establish the terms of replenishment of program funds, including, at
a minimum, repayment of the award to provide for further awards under
this chapter. The award repayment or program reimbursement agreement
may provide that payments be made to the  commission
  department  when the award recipient, affiliate
of the award recipient, or third party receives, through any kind of
transaction, an economic benefit from the project, invention, or
product developed, made possible, or derived, in whole or in part, as
a result of the award.
   (2) An award repayment or program reimbursement agreement shall
specify the method to be used by the  commission 
 department  to determine and establish the terms of
repayment and reimbursement of the award.
   (3) The  commission   department  may
require due diligence of the award recipient and may take any action
that is necessary to bring the project, invention, or product to
market.
   (4) Subject to the confidentiality requirements of Section 2505 of
Title 20 of the California Code of Regulations, the 
commission   department  may require access to
financial, sales, and production information, and to other agreements
involving transactions of the award recipient, affiliates of the
award recipient, and third parties, as necessary, to ascertain the
royalties or other payments due the  commission 
 department  .
   (b) A "royalty agreement" is an award repayment or program
reimbursement agreement and is subject to all of the following
conditions:
   (1) The royalty rate shall be determined by the 
commission   department  and shall not exceed 5
percent of the gross revenue derived from the project, invention, or
product.
   (2) The royalty agreement shall specify the method to be used by
the  commission   department  to determine
and establish the terms of payment of the royalty rate.
   (3) The  commission   department  shall
determine the duration of the royalty agreement and may negotiate a
collection schedule.
   (4) The commission   department  , for
separate consideration, may negotiate and receive payments to provide
for an early termination of the royalty agreement.
   (c) (1) The  commission   department 
may require that the intellectual property developed, made possible,
or derived, in whole or in part, as a result of the award repayment
or program reimbursement agreement, revert to the state upon a
default in the terms of the award repayment or program reimbursement
agreement or royalty agreement.
   (2) The  commission   department  may
require advance notice of any transaction involving intellectual
property rights.
   SEC. 50.   Section 3822 of the   Public
Resources Code   is amended to read: 
   3822.  (a) Thirty percent of the revenues received and deposited
in the Geothermal Resources Development Account shall be available
for expenditure by the  commission   department
 as grants or loans to local jurisdictions or private entities
without regard to fiscal years. These revenues shall be held by the
 commission   department  in the Local
Government Geothermal Resources Revolving Subaccount, which is hereby
created in the Geothermal Resources Development Account. Loan
repayments shall be deposited in the subaccount and shall be used for
making additional grants and loans pursuant to Section 3823.
   (b) No local jurisdiction shall be eligible to apply for a grant
or loan pursuant to this section unless its governing body approves
the application by resolution.
   (c) Each recipient of a grant or loan made pursuant to this
section shall establish, for the deposit of the revenues, an account
or fund that is separate from the other accounts and funds of the
recipient, and may expend the revenues only for the purposes
specified in this chapter.
   (d) The  commission   department  shall
make grants and loans pursuant to this section irrespective of
whether a local jurisdiction is a county of origin.
   (e) Any of the revenues that are not disbursed as grants or loans
pursuant to this section during the fiscal year received shall be
retained in the subaccount and may be disbursed as grants or loans
pursuant to this section in succeeding fiscal years.
   (f) (1) Any loan made under this section shall:
   (A) Not exceed 80 percent of the local jurisdiction's costs.
   (B) Be repaid together with interest within 20 years from receipt
of the loan funds.
   (2) Notwithstanding any other provision of law, the 
commission   department  shall, unless it
determines that the purposes of this chapter would be better served
by establishing an alternative interest rate schedule, periodically
set interest rates on the loans based on surveys of existing
financial markets and at rates not lower than the Pooled Money
Investment Account.
   (g) Any loan or grant made to a private entity under this section
shall (1) be matched with at least an equal investment by the
recipient, (2) provide tangible benefits, as determined by the
 commission   department  , to a local
jurisdiction, and (3) be approved by the city, county, or Indian
reservation within which the project is to be located.
   (h) The  commission   department  may
require an award repayment or program reimbursement agreement of any
recipient of a grant or loan made pursuant to this section.
   SEC. 51.    Section 3822.1 of the   Public
Resources Code   is amended to read: 
   3822.1.  Notwithstanding any other provision of law, commencing
with the 1984-85 fiscal year and in each fiscal year thereafter, any
revenues not granted pursuant to Section 3822 remaining in the
Geothermal Resources Development Account and any revenues expected to
be received and disbursed during the 1984-85 fiscal year and in each
fiscal year thereafter shall be made a part of the Governor's
Budget. Projects approved by the  State Energy Resources
Conservation and Development Commission   department
 under this chapter shall be submitted for review and comment to
the Department of Finance, the Legislative Analyst, and the Joint
Legislative Budget Committee when the Legislature is in session.
After a 30-day period, the  commission  
department  shall execute the funding agreements. The 
commission   department  shall submit to the
Legislature by April 1 of each year, a list of projects, in priority
order, selected and approved during the previous year.
   SEC. 52.    Section 3822.2 of the   Public
Resources Code   is amended to read: 
   3822.2.  (a) Notwithstanding any other provision of law, the
 State Energy Resources Conservation and Development
Commission   department  may expend funds, from
that portion of the Geothermal Resources Development Account used by
the  commission   department  for grants
and loans, to provide direct technical assistance to local
jurisdictions which are eligible for grants and loans pursuant to
Section 3822.
   (b) The total of all amounts expended pursuant to this section
shall not exceed 5 percent of all funds available under Section 3822
or one hundred thousand dollars ($100,000), whichever amount is less.

   (c) In making expenditures under this section, the 
commission   department  shall consider, but not be
limited to a consideration of, all of the following:
   (1) The availability of energy resource and technology
opportunities.
   (2) The project definition and likelihood of success.
   (3) Local needs and potential project benefits.
   SEC. 53.    Section 4799.16 of the   Public
Resources Code   is amended to read: 
   4799.16.  The department shall coordinate its activities and
cooperate with the  State Energy Resources Conservation and
                                                Development
Commission   Department of Energy  in the
development of surveys, studies, and research concerning the
utilization of wood waste and forest growth for energy. The
department shall also coordinate its activities with other public and
private agencies to  insure   ensure  that
the activities of the department and  such  
those  other agencies are not duplicative and the maximum
benefit occurs from actions taken by the department to carry out its
responsibilities pursuant to this chapter.
   SEC. 54.    Section 6815.2 of the   Public
Resources Code   is amended to read: 
   6815.2.  (a) Notwithstanding Section 6815.1, the commission may
take any oil, gas, or other hydrocarbons taken in kind by it,
pursuant to any lease or agreement, and exchange it, by competitive
bidding, for refined products  which   that
 shall be allocated to state agencies and to other public
agencies, if the  State Energy Resources Conservation and
Development Commission, established pursuant to Division 15
(commencing with Section 25000)   California Energy
Board  , after a public hearing, finds, in its judgment, that
 such   the  retention and allocation is
necessary to alleviate fuel shortage conditions or will effect a
substantial cost saving to the state.
   (b) The commission may make and enter into contracts or agreements
for exchange of  such  oil, gas, and other
hydrocarbons taken in kind for finished products required for use by
state and other public agencies.  Such   These
 contracts or agreements shall be entered into by competitive
bids. The commission may reject all bids, if it determines that they
are not in the public interest.
   (c) The commission shall charge the state or other public agencies
allocated refined products the current market price of these
products including all applicable taxes. This price shall not be less
than the value of the oil, gas, or other hydrocarbons  which
  that  would have been received by the state if
not taken in kind. The revenue shall be subject to the terms and
conditions enumerated in Section 6217. The taxes generated by these
sales shall be distributed according to applicable provisions of the
Revenue and Taxation Code.
   (d) The refined products obtained from  such 
exchange contracts or agreements  entered into pursuant to this
section  shall be allocated to state agencies and to other
public agencies in accordance with the regulations which shall be
adopted, after a public hearing, by the  State Energy
Resources Conservation and Development Commission  
Department of Energy  .
   (e)  (1)    Notwithstanding Section 6815.1, if
the commission determines that it is in the best interests of the
state, it may allow another state or public agency to take in kind
oil, gas, or other hydrocarbons acquired by the commission. 
   The 
    (2)     The  commission shall charge
the state or other public agencies allocated in kind oil, gas, or
other hydrocarbons the current market price of these products,
including all applicable taxes. This price shall not be less than the
value of the oil, gas, or other hydrocarbons  which
  that  would have been received by the state if
not taken in kind. The commission may also charge for any
transportation, treatment, or other costs associated with taking the
in kind royalty. The revenue shall be subject to the terms and
conditions enumerated in Section 6217. The taxes generated by these
sales shall be distributed according to applicable provisions of the
Revenue and Taxation Code.
   SEC. 55.    Section 14584 of the   Public
Resources Code   is amended to read:
   14584.  (a) Operators of reverse vending machines or processors
may apply to the California Pollution Control Financing Authority for
financing pursuant to Section 44526 of the Health and Safety Code,
as a means of obtaining capital for establishment of a convenience
network. For purposes of Section 44508 of the Health and Safety Code,
"project" includes the establishing of a recycling location pursuant
to the division.
   (b) Corporations, companies, or individuals may apply for loan and
grant funds from the Energy Technologies Research, Development, and
Demonstration Account specified in Section 25683 by applying to the
 State Energy Resources Conservation and Development
Commission   Department of Energy  for the purpose
of demonstrating equipment for enhancing recycling opportunities.
   SEC. 56.    Section 21080 of the   Public
Resources Code   is amended to read: 
   21080.  (a) Except as otherwise provided in this division, this
division shall apply to discretionary projects proposed to be carried
out or approved by public agencies, including, but not limited to,
the enactment and amendment of zoning ordinances, the issuance of
zoning variances, the issuance of conditional use permits, and the
approval of tentative subdivision maps unless the project is exempt
from this division.
   (b) This division does not apply to any of the following
activities:
   (1) Ministerial projects proposed to be carried out or approved by
public agencies.
   (2) Emergency repairs to public service facilities necessary to
maintain service.
   (3) Projects undertaken, carried out, or approved by a public
agency to maintain, repair, restore, demolish, or replace property or
facilities damaged or destroyed as a result of a disaster in a
disaster-stricken area in which a state of emergency has been
proclaimed by the Governor pursuant to Chapter 7 (commencing with
Section 8550) of Division 1 of Title 2 of the Government Code.
   (4) Specific actions necessary to prevent or mitigate an
emergency.
   (5) Projects  which   that  a public
agency rejects or disapproves.
   (6) Actions undertaken by a public agency relating to any 
thermal  powerplant site or facility  of 50 megawatts
or greater  , including the expenditure, obligation, or
encumbrance of funds by a public agency for planning, engineering, or
design purposes, or for the conditional sale or purchase of
equipment, fuel, water (except groundwater), steam, or power for a
 thermal  powerplant, if the powerplant site and
related facility will be the subject of an environmental impact
report, negative declaration, or other document, prepared pursuant to
a regulatory program certified pursuant to Section 21080.5, which
will be prepared by the  State Energy Resources Conservation
and Development Commission   Department of Energy 
, by the Public Utilities Commission, or by the city or county in
which the powerplant and related facility would be located if the
environmental impact report, negative declaration, or document
includes the environmental impact, if any, of the action described in
this paragraph.
   (7) Activities or approvals necessary to the bidding for, hosting
or staging of, and funding or carrying out of, an Olympic games under
the authority of the International Olympic Committee, except for the
construction of facilities necessary for the Olympic games.
   (8) The establishment, modification, structuring, restructuring,
or approval of rates, tolls, fares, or other charges by public
agencies  which   that  the public agency
finds are for the purpose of (A) meeting operating expenses,
including employee wage rates and fringe benefits, (B) purchasing or
leasing supplies, equipment, or materials, (C) meeting financial
reserve needs and requirements, (D) obtaining funds for capital
projects necessary to maintain service within existing service areas,
or (E) obtaining funds necessary to maintain those intracity
transfers as are authorized by city charter. The public agency shall
incorporate written findings in the record of any proceeding in which
an exemption under this paragraph is claimed setting forth with
specificity the basis for the claim of exemption.
   (9) All classes of projects designated pursuant to Section 21084.
   (10) A project for the institution or increase of passenger or
commuter services on rail or highway rights-of-way already in use,
including modernization of existing stations and parking facilities.
   (11) A project for the institution or increase of passenger or
commuter service on high-occupancy vehicle lanes already in use,
including the modernization of existing stations and parking
facilities.
   (12) Facility extensions not to exceed four miles in length
 which   that  are required for the
transfer of passengers from or to exclusive public mass transit
guideway or busway public transit services.
   (13) A project for the development of a regional transportation
improvement program, the state transportation improvement program, or
a congestion management program prepared pursuant to Section 65089
of the Government Code.
   (14) Any project or portion thereof located in another state
 which   that  will be subject to
environmental impact review pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) or similar state
laws of that state. Any emissions or discharges that would have a
significant effect on the environment in this state are subject to
this division.
   (15) Projects undertaken by a local agency to implement a rule or
regulation imposed by a state agency, board, or commission under a
certified regulatory program pursuant to Section 21080.5. Any
site-specific effect of the project  which  
that  was not analyzed as a significant effect on the
environment in the plan or other written documentation required by
Section 21080.5 is subject to this division.
   (16) The selection, credit, and transfer of emission credits by
the South Coast Air Quality Management District pursuant to Section
40440.14 of the Health and Safety Code, until the repeal of that
section on January 1, 2012, or a later date.
   (c) If a lead agency determines that a proposed project, not
otherwise exempt from this division, would not have a significant
effect on the environment, the lead agency shall adopt a negative
declaration to that effect. The negative declaration shall be
prepared for the proposed project in either of the following
circumstances:
   (1) There is no substantial evidence, in light of the whole record
before the lead agency, that the project may have a significant
effect on the environment.
   (2) An initial study identifies potentially significant effects on
the environment, but (A) revisions in the project plans or proposals
made by, or agreed to by, the applicant before the proposed negative
declaration and initial study are released for public review would
avoid the effects or mitigate the effects to a point where clearly no
significant effect on the environment would occur, and (B) there is
no substantial evidence, in light of the whole record before the lead
agency, that the project, as revised, may have a significant effect
on the environment.
   (d) If there is substantial evidence, in light of the whole record
before the lead agency, that the project may have a significant
effect on the environment, an environmental impact report shall be
prepared.
   (e) (1) For the purposes of this section and this division,
substantial evidence includes fact, a reasonable assumption
predicated upon fact, or expert opinion supported by fact.
   (2) Substantial evidence is not argument, speculation,
unsubstantiated opinion or narrative, evidence that is clearly
inaccurate or erroneous, or evidence of social or economic impacts
that do not contribute to, or are not caused by, physical impacts on
the environment.
   (f) As a result of the public review process for a mitigated
negative declaration, including administrative decisions and public
hearings, the lead agency may conclude that certain mitigation
measures identified pursuant to paragraph (2) of subdivision (c) are
infeasible or otherwise undesirable. In those circumstances, the lead
agency, prior to approving the project, may delete those mitigation
measures and substitute for them other mitigation measures that the
lead agency finds, after holding a public hearing on the matter, are
equivalent or more effective in mitigating significant effects on the
environment to a less than significant level and that do not cause
any potentially significant effect on the environment. If those new
mitigation measures are made conditions of project approval or are
otherwise made part of the project approval, the deletion of the
former measures and the substitution of the new mitigation measures
shall not constitute an action or circumstance requiring
recirculation of the mitigated negative declaration.
   (g)  Nothing in this section shall   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. 57.    Section 25000.1 of the   Public
Resources Code   is amended to read: 
   25000.1.  (a) The Legislature further finds and declares that, in
addition to their other ratepayer protection objectives, a principal
goal of electric and natural gas utilities' resource planning and
investment shall be to minimize the cost to society of the reliable
energy services that are provided by natural gas and electricity, and
to improve the environment and to encourage the diversity of energy
sources through improvements in energy efficiency and development of
renewable energy resources, such as wind, solar, and geothermal
energy.
   (b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
   (c) In calculating the cost effectiveness of energy resources,
including conservation and load management options, the 
commission   department  shall include a value for
any costs and benefits to the environment, including air quality. The
 commission   department  shall ensure
that any values it develops pursuant to this section are consistent
with values developed by the Public Utilities  Commission
  department  pursuant to Section 701.1 of the
Public Utilities Code. However, if the  commission 
 department  determines that a value developed pursuant to
this subdivision is not consistent with a value developed by the
Public Utilities Commission pursuant to subdivision (c) of Section
701.1 of the Public Utilities Code, the  commission 
 department  may nonetheless use this value if, in the
appropriate record of its proceedings, it states its reasons for
using the value it has selected.
  SEC. 58.    Section 25005.5 of the   Public
Resources Code   is amended to read: 
   25005.5.  The Legislature further finds and declares that
information should be acquired and analyzed by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  in order to ascertain future energy
problems and uncertainties, including, but not limited to:
   (a) The state's role in production of oil from domestic reserves,
especially within Petroleum Administration for Defense District V.
   (b) The production of Alaskan North Slope oil and its projected
use in the state.
   (c) Plans of the federal government for development of oil in the
Outer Continental Shelf adjacent to the state.
   (d) Impacts of petroleum price increases and projected
conservation measures on the demand for energy and indirect effects
on the need for offshore oil development and Alaskan oil delivery
into the state.
   (e) Potential shipment of Alaskan oil through the state.
   (f) Proposals for processing petroleum outside the state to supply
the needs within the state.
   (g) The impact on the state of national energy policies, including
Project Independence.
   SEC. 59.    Section 25104 of the   Public
Resources Code   is amended to read: 
   25104.  "Commission"  or "board"  means the 
State Energy Resources Conservation and Development Commission
  California Energy Board. References to the State
Energy Resources Conservation and Development Commission or the
Califor   nia Energy Commission in other laws shall be to
the California Energy Board  .
   SEC. 60.    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. 61.    Section 25104.2 is added to the 
 Public Resources Code   , to read:  
   25104.2.  "Secretary" means the Secretary of Energy. 
   SEC. 62.    Section 25106 of the   Public
Resources Code   is amended to read: 
   25106.  "Adviser" means the  administrative  
public  adviser employed by the  commission 
 department  pursuant to Section  25217 
 25217.1  .
   SEC. 63.    Section 25107 of the   Public
Resources Code   is amended to read: 
   25107.  "Electric transmission line" means any electric powerline
carrying electric power from a  thermal  powerplant
located within the state to a point of junction with any
interconnected transmission system. "Electric transmission line" does
not include any replacement on the existing site of existing
electric powerlines with electric powerlines equivalent to such
existing electric powerlines or the placement of new or additional
conductors, insulators, or accessories related to such electric
powerlines on supporting structures in existence on the effective
date of this division or certified pursuant to this division.
   SEC. 64.    Section 25110 of the   Public
Resources Code   is amended to read: 
   25110.  "Facility" means any electric transmission line or
 thermal  powerplant, or both electric transmission
line and  thermal  powerplant, regulated according
to  the provisions of  this division.
   SEC. 65.    Section 25112 of the   Public
Resources Code   is amended to read: 
   25112.  "Member" or "member of the commission"  or "member of
the board"  means a member of the  State Energy
Resources Conservation and Development Commission 
California Energy Board  appointed  or designated 
pursuant to Section  25200   25203  .
   SEC. 66.    Section 25113 of the   Public
Resources Code   is repealed.  
   25113.  "Notice" means the notice of intent, as further defined in
Chapter 6 (commencing with Section 25500), which shall state the
intention of an applicant to file an application for certification of
any site and related facility. 
   SEC. 67.    Section 25120 of the   Public
Resources Code   is repealed.  
   25120.  "Thermal powerplant" means any stationary or floating
electrical generating facility using any source of thermal energy,
with a generating capacity of 50 megawatts or more, and any
facilities appurtenant thereto. Exploratory, development, and
production wells, resource transmission lines, and other related
facilities used in connection with a geothermal exploratory project
or a geothermal field development project are not appurtenant
facilities for the purposes of this division.
   "Thermal powerplant" does not include any wind, hydroelectric, or
solar photovoltaic electrical generating facility. 
   SEC. 68.    Section 25120 is added to the  
Public Resources Code   , to read:  
   25120.  "Powerplant" means a stationary or floating electrical
generating facility using any thermal source of energy or solar
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. 69.    Section 25123 of the   Public
Resources Code   is amended to read: 
   25123.  "Modification of an existing facility" means any
alteration, replacement, or improvement of equipment that results in
a 50-megawatt or more increase in the electric generating capacity of
an existing  thermal  powerplant or an increase of
25 percent in the peak operating voltage or peak kilowatt capacity of
an existing electric transmission line.
   SEC. 70.    The heading of Chapter 3 (commencing with
Section 25200) of Division 15 of the   Public Resources
Code   is amended to read: 
      CHAPTER 3.   STATE ENERGY RESOURCES CONSERVATION AND
DEVELOPMENT COMMISSION   DEPARTMENT OF ENERGY 


   SEC. 71.    Section 25200 of the   Public
Resources Code   is repealed.  
   25200.  There is in the Resources Agency the State Energy
Resources Conservation and Development Commission, consisting of five
members appointed by the Governor subject to Section 25204.

   SEC. 72.    Section 25200 is ad   ded 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 the Governor, subject to Senate confirmation and who
shall hold office at the pleasure of the Governor. The Governor shall
appoint the initial secretary by January 31, 2011.
   (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 an Assistant Secretary of Energy who
shall serve at the pleasure of the Governor.
   (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. Notwithstanding Sections 11042, 11043, and 11157 of the
Government Code, the secretary may employ legal counsel who shall
represent the department and the commission 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. 73.    Section 25201 of the   Public
Resources Code   is repealed.  
   25201.  One member of the commission shall have a background in
the field of engineering or physical science and have knowledge of
energy supply or conversion systems; one member shall be an attorney
and a member of the State Bar of California with administrative law
experience; one member shall have background and experience in the
field of environmental protection or the study of ecosystems; one
member shall be an economist with background and experience in the
field of natural resource management; and one member shall be from
the public at large. 
   SEC. 74.    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, jurisdiction, and rights and privileges 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 Board within the department as provided by law
or directly by the Secretary of Energy.
   (2) Electricity Oversight Board.
   (b) Any reference in any law, regulation, or guideline to any of
the predecessor entities listed in subdivision (a) shall be deemed to
refer to the Department of Energy or the California Energy Board, as
appropriate, unless the context requires otherwise. 
   SEC. 75.    Section 25202 of the   Public
Resources Code   is repealed.  
   25202.  The Secretary of the Resources Agency and the President of
the Public Utilities Commission shall be ex officio, nonvoting
members of the commission, whose presence shall not be counted for a
quorum or for vote requirements. 
   SEC. 76.    Section 25202 is added to the  
Public Resources Code   , to read:  
   25202.  In addition to the powers, duties, responsibilities,
jurisdiction, and rights and privileges specified in Section 25201,
the Department                                            of Energy
hereby succeeds to, and is vested with, all the powers, duties,
responsibilities, obligations, liabilities, jurisdiction, and rights
and privileges of all of the following:
   (a) The California Energy Extension Service of the Office of
Planning and Research.
   (b) All functions of the Energy Assessment Program or its
successor entity within the Department of General Services.
   (c) All functions of the Energy Services Programs or their
successor entities in the Office of the State Architect within the
Department of General Services.
   (d) On and after January 1, 2013, all functions of the Department
of Community Services and Development related to the receipt and
administration of federal energy-related programs including the
Low-Income Home Energy Assistance Program Block Grant, provided for
pursuant to the Low-Income Home Energy Assistance Act of 1981, as
amended (42 U.S.C. Sec. 8621 et seq.), and the United States
Department of Energy Weatherization Assistance Program, provided for
pursuant to Title IV of the Energy Conservation and Production Act
(Public Law 94-385, as amended) and pursuant to the United States
Housing and Urban Development Residential Lead-Based Paint Hazard
Reduction Act of 1992 (Public Law 102-550, as amended), and the
receipt and administration of the community service block grants
provided pursuant to Subtitle B of Title VI of Public Law 97-35, as
amended, and administered pursuant to Chapter 9 (commencing with
Section 12725) of Part 2 of Division 3 of Title 2 of the Government
Code. 
   SEC. 77.    Section 25203 of the   Public
Resources Code   is repealed.  
   25203.  Each member of the commission shall represent the state at
large and not any particular area thereof, and shall serve on a
full-time basis. 
   SEC. 78.    Section 25203 is added to the  
Public Resources Code   , to read:  
   25203.  (a) There is, in the state government, the California
Energy Board, which is hereby created within the Department of
Energy.
   (b) The board 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 Secretary of the Natural Resources Agency.
   (c) The president of the California Public Utilities Commission
and the Secretary of the Natural Resources Agency shall serve as ex
officio, nonvoting members of the board, whose presence shall not be
counted for a quorum or for vote requirements.
   (d) (1) The Governor shall appoint the public members of the
board, 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, 2011, the Governor shall appoint the
initial members of the board. Every appointment made by the Governor
to the board 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 board shall be for
four years, except that the members first appointed to the board
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, 2010, 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 board 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 board, 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 board hereby succeeds to, and is vested with, all powers,
duties, obligations, liabilities, responsibilities, jurisdiction, and
rights and privileges of the predecessor State Energy Resources
Conservation and Development Commission set forth in Chapter 6
(commencing with Section 25500).
   (h) Meetings of the board shall be open to the public and shall be
conducted in accordance with the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
   (i) The secretary may delegate to the board any duty of the
secretary if the secretary determines that doing so would not
conflict with other responsibilities of the board and that utilizing
the procedures of the board would serve the public interest.
   (j) For purposes of this chapter, "board" means the California
Energy Board. 
   SEC. 79.    Section 25204 of the   Public
Resources Code   is repealed.  
   25204.  The Governor shall appoint the members of the commission
within 30 days after the effective date of this division. Every
appointment made by the Governor to the commission shall be subject
to the advice and consent of a majority of the members elected to the
Senate. 
  SEC. 80.    Section 25204 is added to the  
Public Resources Code   , to read:  
   25204.  (a) All regulations, orders, and guidelines 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. All proceedings pending before
an entity listed in subdivision (a) of Section 25201 or an entity
listed in Section 25202 shall not abate but continue as proceedings
before the department or commission, as appropriate.
   (b) Except as otherwise specified, a statute, law, rule, or
guideline 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.  
  SEC. 81.    Section 25205 of the Public Resources Code is
amended to read: 
   25205.  (a)  No   A  person shall 
not  be a member of the  commission   board
 who, during the two years prior to appointment on the 
commission   board  , 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 board
 . A member of the  commission   board
 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
board  .
   (b) Except as provided in Section 25202, the members of the
 commission   board  shall not hold any
other elected or appointed public office or position.
   (c) The members of the  commission   board
 and all employees of the  commission  
department  shall comply with all applicable provisions of
Section 19251 of the Government Code.
   (d) A person who is a member  of the board  or employee
of the  commission   department  shall not
participate personally and substantially as a member  of the
board  or employee of the  commission  
department  , 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  of the board  or employee of the
 commission  department  or within two
years prior to his or her appointment as a member of the 
commission   board  , has a direct or indirect
financial interest.
   (e) A person who is a partner, employer, or employee of a member
 of the board  or employee of the  commission
  department  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
  board or department  is a party or has a direct
and substantial interest.
   (f)  The provisions of this   This 
section shall not apply if the Attorney General finds that the
interest of the member  of the board  or employee of the
 commission   department  is not so
substantial as to be deemed likely to affect the integrity of the
services which the state may expect from the member or employee.
   (g) Any person who violates  any provision of 
this section is guilty of a felony and shall be subject to a fine of
not more than ten thousand dollars ($10,000) or imprisonment in the
state prison, or both.
   (h) The amendment of subdivision (d) of this section enacted by
the 1975-76 Regular Session of the Legislature does not constitute a
change in, but is declaratory of, existing law. 
  SEC. 82.    Section 25205.5 is added to the Public
Resources Code, to read:
   25205.5.  A contract, grant, loan, 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, grant, loan, lease, license,
or agreement. Bonds issued by or on behalf of the entity referred to
in paragraph (1) of subdivision (a) of Section 25201 or the entities
referred to in Section 25202 with regard to the functions transferred
to the department, or issued by or on behalf of any of the
predecessors, on or before January 1, 2011, shall become the
indebtedness of the department. 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. 83.    Section 25206 of the Public Resources Code is
repealed.  
   25206.  The terms of office of the members of the commission shall
be for five years, except that the members first appointed to the
commission shall classify themselves by lot so that the term of
office of one member shall expire at the end of each one of the five
years following the effective date of this division. Any vacancy
shall be filled by the Governor within 30 days of the date on which a
vacancy occurs for the unexpired portion of the term in which it
occurs or for any new term of office.
   If the Governor fails to make an appointment for any vacancy
within such 30-day period, the Senate Rules Committee may make the
appointment to fill the vacancy for the unexpired portion of the term
in which the vacancy occurred or for any new term of office, subject
to the provisions of Section 25204.  
  SEC. 84.    Section 25206 is added to the Public Resources
Code, to read:
   25206.  On and after January 1, 2011, 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. 85.    Section 25207 of the Public Resources Code is
amended to read: 
   25207.  The  secretary and the public  members of the
 commission   board  shall receive the
salary provided for by Chapter 6 (commencing with Section 11550) of
Part 1 of Division 3 of Title 2 of the Government Code.
   Each member of the  commission   board 
shall receive the necessary traveling and other expenses incurred in
the performance of his official duties. When necessary, the members
of the  commission   board  and 
its   the  employees  of the department 
may travel within or without the state. 
  SEC. 86.    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. 87.    Section 25208 is added to the Public Resources
Code, to read:
   25208.  (a) It is the intent of the Legislature to transfer to the
Department of Energy, the certification of an electric transmission
line, plant, or system, or any extension thereof.
   (b) 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.
   (c) The department, in consultation with the Public Utilities
Commission and the Independent System Operator, shall prepare, and
submit to the Governor and the Legislature on or before January 1,
2011, a strategic plan that identifies administrative and statutory
measures that, preserving environmental protections, public
participation, and continuity of existing electric transmission line
siting processes, would improve the siting and licensing process for
electric transmission lines. The strategic plan 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 the 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, including recommendations
for the option of siting transmission lines not owned by an
electrical corporation.
   (6) Recommendations for administering existing electric
transmission siting applications to ensure continuity and
efficiencies.
   (7) The provision for the transfer of employees serving in the
state civil service, other than temporary employees, who are engaged
in the performance of a function transferred to the department or
engaged in the administration of a law, the administration of which
is transferred to the agency. The status, positions, and rights of
those persons shall not be affected by their transfer and shall
continue to be retained by them pursuant to the State Civil Service
Act (Part 2 (commencing with Section 18500) of Division 5), except as
to positions the duties of which are vested in a position exempt
from civil service.
   (8) The provision for the transfer or other disposition of the
personnel records and property affected by any reorganization.
   (9) Timelines for implementing recommendations.
   (d) 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
Board, 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.
   (e) Applications on file before the Public Utilities Commission on
or before January 1, 2011, 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.
   (f) On and after January 1, 2011, 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.
   (g) 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. 88.    Section 25209 of the Public Resources Code is
amended to read: 
   25209.  Each member of the  commission  
board  shall have one vote. Except as provided in Section 25211,
the affirmative votes of at least three members shall be required
for the transaction of any business of the  commission
  board  . 
  SEC. 89.    Section 25210 of the Public Resources Code is
amended to read: 
   25210.  The  commission   board  may
hold any hearings and conduct any investigations in any part of the
state necessary to carry out its powers and duties prescribed by this
division and, for those purposes, has the same powers as are
conferred upon heads of departments of the state by Article 2
(commencing with Section 11180) of Chapter 2 of Part 1 of Division 3
of Title 2 of the Government Code. 
  SEC. 90.    Section 25211 of the Public Resources Code is
amended to read: 
   25211.  The  commission   board  may
appoint a committee of not less than two members of the 
commission   board  to carry on investigations,
inquiries, or hearings  which   that  the
 commission   board  has power to undertake
or to hold. At least one member of the  committee 
 board  shall attend all public hearings or other
proceedings held pursuant to Chapter 6 (commencing with Section
25500), and all public hearings in biennial report proceedings and
rulemaking proceedings, except that, upon agreement of all parties to
a proceeding who are present at the hearing or proceeding, the
committee may authorize a hearing officer to continue to take
evidence in the temporary absence of a  commission 
 board  member. Every order made by the committee pursuant
to the inquiry, investigation, or hearing, when approved or confirmed
by the  commission   board  and ordered
filed in its office, shall be the order of the  commission
  board  . 
  SEC. 91.    Section 25212 of the Public Resources Code is
amended to read: 
   25212.  Every two years the Governor shall designate a 
chairman and  vice chairman of the  commission
  board  from among its members. 
  SEC. 92.    Section 25213 of thePublic Resources Code is
amended to read: 
   25213.  The  commission   department and
board  shall adopt rules and regulations, as necessary, to carry
out the provisions of this division in conformity with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. The commission shall
make available to any person upon request copies of proposed
regulations, together with summaries of reasons supporting their
adoption. 
  SEC. 93.    Section 25214 of the Public Resources Code is
amended to read: 
   25214.  The  commission   department and the
board  shall maintain its headquarters in the County of
Sacramento  and may establish branch offices in such parts of
the state as the commission deems necessary
                  . The  commission  
board  shall hold meetings at  such  times and
 at such  places as shall be determined by it. All
meetings and hearings of the  commission   board
 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. 94.    Section 25215 of the Public Resources Code is
amended to read: 
   25215.   Any   A  member of the 
commission   board  may be removed from office by
the Legislature, by concurrent resolution adopted by a majority vote
of all members elected to each house, for dereliction of duty or
corruption or incompetency. 
  SEC. 95.    Section 25216 of the Public Resources Code is
amended to read: 
   25216.  In addition to other duties specified in this division,
the  commission   department  shall do all
of the following:
   (a) Undertake a continuing assessment of trends in the consumption
of electrical energy and other forms of energy and analyze the
social, economic, and environmental consequences of these trends;
carry out directly, or cause to be carried out, energy conservation
measures specified in Chapter 5 (commencing with Section 25400) of
this division; and recommend to the Governor and the Legislature new
and expanded energy conservation measures as required to meet the
objectives of this division.
   (b) Collect from electric utilities, gas utilities, and fuel
producers and wholesalers and other sources forecasts of future
supplies and consumption of all forms of energy, including
electricity, and of future energy or fuel production and transporting
facilities to be constructed; independently analyze  such
  those  forecasts in relation to statewide
estimates of population, economic, and other growth factors and in
terms of the availability of energy resources, costs to consumers,
and other factors; and formally specify statewide and service area
electrical energy demands to be utilized as a basis for planning the
siting and design of electric power generating and related
facilities.
   (c) Carry out, or cause to be carried out, under contract or other
arrangements, research and development into alternative sources of
energy, improvements in energy generation, transmission, and siting,
fuel substitution, and other topics related to energy supply, demand,
public safety, ecology, and conservation which are of particular
statewide importance. 
  SEC. 96.    Section 25216.3 of the Public Resources Code
is amended to read: 
   25216.3.  (a) The  commission   department
 shall compile relevant local, regional, state, and federal land
use, public safety, environmental, and other standards to be met in
designing, siting, and operating facilities in this state; except as
provided in subdivision (d) of Section 25402, adopt standards, except
for air and water quality, to be met in designing or operating
facilities to safeguard public health and safety, which may be
different from or more stringent than those adopted by local,
regional, or other state agencies, or by any federal agency if
permitted by federal law; and monitor compliance and ensure that all
facilities are operated in accordance with this division.
   (b) The local, regional, and other state agencies shall advise the
 commission   department  as to any change
in its standards, ordinances, or laws which are pertinent and
relevant to the objective of carrying out the provisions of this
division. 
  SEC. 97.   Section 25216.5 of the Public Resources Code is
amended to read: 
   25216.5.  The  commission   department 
shall do all of the following:
   (a) Prescribe the form and content of applications for facilities;
conduct public hearings and take other actions to secure adequate
evaluation of applications; and formally act to approve or disapprove
applications, including specifying conditions under which approval
and continuing operation of any facility shall be permitted.
   (b) Prepare an integrated plan specifying actions to be taken in
the event of an impending serious shortage of energy, or a clear
threat to public health, safety, or welfare.
   (c) Evaluate policies governing the establishment of rates for
electric power and other sources of energy as related to energy
conservation, environmental protection, and other goals and policies
established in this division, and transmit recommendations for
changes in power-pricing policies and rate schedules to the Governor,
the Legislature, to the Public Utilities Commission, and to publicly
owned electric utilities.
   (d) Serve as a central repository within the state government for
the collection, storage, retrieval, and dissemination of data and
information on all forms of energy supply, demand, conservation,
public safety, research, and related subjects. The data and
information shall be derived from all sources, including, but not be
limited to, electric and gas utilities, oil and other energy
producing companies, institutions of higher education, private
industry, public and private research laboratories, private
individuals, and from any other source that the  commission
  department  determines is necessary to carry out
its objectives under this division. The  commission 
 department  may charge and collect a reasonable fee for
retrieving and disseminating any  such  information
to cover the cost of  such a   that 
service. Any funds received by the  commission  
department  pursuant to this subdivision shall be deposited in
the account and are continuously appropriated for expenditure, by the
 commission   department  , for purposes
of retrieving and disseminating any such information pursuant to this
section. 
  SEC. 98.    Section 25217 of the Public Resources Code is
repealed.  
   25217.  The commission shall do all of the following:
   (a) Appoint an executive director with administration and fiscal
experience, who shall serve at its pleasure and whose duties and
salary shall be prescribed by the commission.
   (b) Employ and prescribe the duties of other staff members as
necessary to carry out the provisions of this division. Staff members
of the commission may participate in all matters before the
commission to the limits prescribed by the commission.
   (c) Employ legal counsel who shall advise the commission and
represent it in connection with legal matters and litigation before
any boards and agencies of the state or federal government. 

  SEC. 99.    Section 25217.1 of the Public Resources Code
is amended to read: 
   25217.1.  The  commission   board  shall
nominate and the Governor shall appoint for a term of three years a
public adviser to the  commission   board
who shall be an attorney admitted to the practice of law in this
state and who shall carry out the provisions of Section 25222 as well
as other duties prescribed by this division or by the 
commission   board  . The adviser may be removed
from office only upon the joint concurrence of four 
commissioners   board members  and the Governor.

  SEC. 100.    Section 25217.5 of the Public Resources Code
is repealed.  
   25217.5.  The chairman of the commission shall direct the adviser,
the executive director, and other staff in the performance of their
duties in conformance with the policies and guidelines established by
the commission.  
  SEC. 101.    Section 25218 of the Public Resources Code is
amended to read: 
   25218.  In addition to other powers specified in this division,
the  commission   department  may do any of
the following:
   (a) Apply for and accept grants, contributions, and
appropriations, and award grants consistent with the goals and
objectives of a program or activity the commission is authorized to
implement or administer.
   (b) Contract for professional services if the 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 this division  except those
responsibilities expressly vested in the board  .
   (f) Adopt rules and regulations, or take any action, it deems
reasonable and necessary to ensure the free and open participation of
any member of the staff in proceedings before the 
commission   department  . 
  SEC. 102.    Section 25218.5 of the Public Resources Code
is amended to read: 
   25218.5.  The provisions specifying any power or duty of the
 commission   department or the board 
shall be liberally construed, in order to carry out the objectives of
this division. 
  SEC. 103.    Section 25219 of the Public Resources Code is
repealed.  
   25219.  As to any matter involving the federal government, its
departments or agencies, which is within the scope of the power and
duties of the commission, the commission 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. 104.    Section 25219 is added to the Public
Resources Code, to read:
   25219.  The department shall create a legal subcommittee in order
to collaborate and cooperate in developing a single statewide
position on litigation concerning energy matters within the state.
The subcommittee shall be comprised of:
   (a) The secretary, or the department's legal counsel if one has
been employed pursuant to subdivision (e) of Section 25200.
   (b) The Deputy Secretary of the Office of Energy Market Oversight
pursuant to Section 25228.4.
   (c) The Attorney General.
   (d) The President of the California Public Utilities Commission.
 
  SEC. 105.    Section 25220 of the Public Resources Code is
amended to read: 
   25220.   (a) As to any matter involving the federal
government, or departments or agencies, that is within the scope of
the power and duties of the department, the department may represent
its interest or 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, or departments or
agencies. 
    (b)    The  commission  
department may participate as a party, to the extent that it
shall determine, in any proceeding before any federal or state agency
having authority whatsoever to approve or disapprove any aspect of a
proposed facility, receive notice from any applicant of all
applications and pleadings filed subsequently by  such
  those  applicants in any of  such
  those  proceedings, and, by its request, receive
copies of any of  such   the  subsequently
filed applications and pleadings that it shall deem necessary. 
  SEC. 106.    Section 25221 of the Public Resources Code is
amended to read: 
   25221.  Upon request of the  commission  
department  , the Attorney General shall represent the 
commission   department  and the state in
litigation concerning affairs of the  commission 
 department  , unless the Attorney General represents
another state agency, in which case the  commission 
 department  shall be authorized to employ other counsel.

  SEC. 107.    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
 commission   board  meetings and public
hearings is disseminated to all interested groups and to the public
at large. The adviser shall also advise  such  
those  groups and the public as to effective ways of
participating in the  commission's   board's
 proceedings. The adviser shall recommend to the 
commission   board  additional measures to assure
open consideration and public participation in energy planning, site
and facility certification, energy conservation, and emergency
allocation proceedings. 
  SEC. 108.    Section 25223 of the Public Resources Code is
amended to read: 
   25223.   The commission   (a)  
  Except as provided in subdivision (b), the department and
the board  shall make available any information filed or
submitted pursuant to this division under the provisions of the
California Public Records Act, Chapter 3.5 (commencing with Section
6250) of Division 7, Title 1 of the Government Code; provided,
however, that the 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. 
   (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. 109.    Section 25224 of the Public Resources Code is
amended to read: 
   25224.  The  commission   department, the
board,  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. 110.    Section 25225 of the Public Resources Code is
amended to read: 
   25225.  (a) Prior to expending any funds for any research,
development, or demonstration program or project relating to vehicles
or vehicle fuels, the  commission   department,
by action of the board,  shall do both of the following, using
existing resources:
   (1) Adopt a plan describing any proposed expenditure that sets
forth the expected costs and qualitative as well as quantitative
benefits of the proposed program or project.
   (2) Find that the proposed program or project will not duplicate
any other past or present publicly funded California program or
project. This paragraph is not intended to prevent funding for
programs or projects jointly funded with another public agency where
there is no duplication.
   (b) Within 120 days from the date of the conclusion of a program
or project subject to subdivision (a) that is funded by the 
commission   department  , the  commission
  department shall issue a public report that sets
forth the actual costs of the program or project, the results
achieved and how they compare with expected costs and benefits
determined pursuant to paragraph (1) of subdivision (a), and any
problems that were encountered by the program or project.
   (c)  (1)    This section does
not apply to any funds appropriated for research, development, or
demonstration pursuant to a statute that expressly specifies both of
the following: 
   (A) 
    (1)  A vehicle technology or vehicle fuel which is the
subject of the research, development, or demonstration. 
   (B) 
    (2)  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. 111.    Section 25226 of the Public Resources Code is
amended to read: 
   25226.  (a) The Energy Technologies Research, Development, and
Demonstration Account established under former Section 25683 is
hereby continued in existence, in the General Fund, to be
administered by the  commission   department
 for the purpose of carrying out Chapter 7.3 (commencing with
Section 25630) and Chapter 7.5 (commencing with Section 25650).
   (b) The Controller shall deposit in the account all money
appropriated to the account by the Legislature, plus accumulated
interest on that money, and money from loan repayments, interest, and
royalties pursuant to Sections 25630 and 25650, for use by the
 commission   department  , upon
appropriation by the Legislature, for the purposes specified in
Chapter 7.3 (commencing with Section 25630) and Chapter 7.5
(commencing with Section 25650). 
  SEC. 112.    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.
   (e) Arrange to obtain all transactional data from a "public
utility" within the meaning of Section 1001 of the Public Utilities
Code or a district established by the Municipal Utility District Act
(Division 6 (commencing with Section 11501) of the Public Utilities
Code) for transactions through the California Independent System
Operator. The office shall review the data quarterly for unjust or
unreasonable pricing or practices that are not subject to the
jurisdiction of the Federal Energy Regulatory Commission.
   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 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
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.
   (l) 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.  (a) The Office of Energy Market Oversight may adopt rules
or protective orders to protect the confidential status of market
sensitive information.
   (b) Information made confidential pursuant to a federally approved
tariff that is obtained by the department or the office is
confidential and prohibited from disclosure without the consent of
the source of information except as required by a court order or
other legal process.
   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 Governor 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 board shall
appoint an attorney who shall advise and represent the board 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 board and who shall perform generally
all the duties of attorney with respect to the board.  
  SEC. 113.    Section 25301 of the Public Resources Code is
amended to read: 
   25301.  (a) At least every two years, the  commission
  department  shall conduct assessments and
forecasts of all aspects of energy industry supply, production,
transportation, delivery and distribution, demand, and prices. The
 commission   department  shall use these
assessments and forecasts to develop energy policies that conserve
resources, protect the environment, ensure energy reliability,
enhance the state's economy, and protect public health and safety. To
perform these assessments and forecasts, the  commission
  department  may require submission of demand
forecasts, resource plans, market assessments, and related outlooks
from electric and natural gas utilities, transportation fuel and
technology suppliers, and other market participants. These
assessments and forecasts shall be done in consultation with  the
Independent System Operator and  the appropriate state and
federal agencies including, but not limited to, the Public Utilities
Commission, the  Office   Division  of
Ratepayer Advocates, the Air Resources Board,  the
Electricity Oversight Board, the Independent System Operator,
 the Department of Water Resources,  the California
Consumer Power and Conservation Financing Authority,  the
 State  Department of Transportation, and the Department of
Motor Vehicles.
   (b) In developing the assessments and forecasts prepared pursuant
to subdivision (a), the  commission   department
 shall do all of the following:
   (1) Provide information about the performance of energy
industries.
   (2) Develop and maintain the analytical capability sufficient to
answer inquiries about energy issues from government, market
participants, and the public.
   (3) Analyze and develop energy policies.
   (4) Provide an analytical foundation for regulatory and policy
decisionmaking.
   (5) Facilitate efficient and reliable energy markets. 
  SEC. 114.    Section 25302 of the Public Resources Code is
amended to read: 
   25302.  (a) Beginning November 1, 2003, and every two years
thereafter, the  commission   board  shall
adopt an integrated energy policy report. This integrated report
shall contain an overview of major energy trends and issues facing
the state, including, but not limited to, supply, demand, pricing,
reliability, efficiency, and impacts on public health and safety, the
economy, resources, and the environment. Energy markets and systems
shall be grouped and assessed in three subsidiary volumes:
   (1) Electricity and natural gas markets.
   (2) Transportation fuels, technologies, and infrastructure.
   (3) Public interest energy strategies.
   (b) The  commission   board  shall
compile the integrated energy policy report prepared pursuant to
subdivision (a) by consolidating the analyses and findings of the
subsidiary volumes in paragraphs (1), (2), and (3) of subdivision
(a). The integrated energy policy report shall present policy
recommendations based on an indepth and integrated analysis of the
most current and pressing energy issues facing the state. The
analyses supporting this integrated energy policy report shall
explicitly address interfuel and intermarket effects to provide a
more informed evaluation of potential tradeoffs when developing
energy policy across different markets and systems.
   (c) The integrated energy policy report shall include an
assessment and forecast of system reliability and the need for
resource additions, efficiency, and conservation that considers all
aspects of energy industries and markets that are essential for the
state economy, general welfare, public health and safety, energy
diversity, and protection of the environment. This assessment shall
be based on determinations made pursuant to this chapter.
   (d) Beginning November 1, 2004, and every two years thereafter,
the  commission   department  shall prepare
an energy policy review to update analyses from the integrated
energy policy report prepared pursuant to subdivisions (a), (b), and
(c), or to raise energy issues that have emerged since the release of
the integrated energy policy report. The  commission
  department  may also periodically prepare and
release technical analyses and assessments of energy issues and
concerns to provide timely and relevant information for the Governor,
the Legislature, market participants, and the public.
   (e) In preparation of the report, the  commission
  department  shall consult with the following
entities: the Public Utilities Commission, the  Office
  Division  of Ratepayer Advocates, the State Air
Resources Board,  the Electricity Oversight Board, 
the Independent System Operator, the Department of Water Resources,
 the California Consumer Power and Conservation Financing
Authority,  the  State  Department of
Transportation, and the Department of Motor Vehicles, and any
federal, state, and local agencies it deems necessary in preparation
of the integrated energy policy report. To assure collaborative
development of state energy policies, these agencies shall make a
good faith effort to provide data, assessment, and proposed
recommendations for review by the commission.
   (f) The  commission   department  shall
provide the report to the Public Utilities Commission, the 
Office   Division  of Ratepayer Advocates, the
State Air Resources Board,  the Electricity Oversight Board,
 the Independent System Operator, the Department of Water
Resources,  the California Consumer Power and Conservation
Financing Authority,  and the Department of Transportation.
For the purpose of ensuring consistency in the underlying information
that forms the foundation of energy policies and decisions affecting
the state, those entities shall carry out their energy-related
duties and responsibilities based upon the information and analyses
contained in the report. If an entity listed in this subdivision
objects to information contained in the report, and has a reasonable
basis for that objection, the entity shall not be required to
consider that information in carrying out its energy-related duties.
   (g) The  commission   department  shall
make the report accessible to state, local, and federal entities and
to the general public. 
  SEC. 115.    Section 25303 of the Public Resources Code is
amended to read: 
   25303.  (a) The  commission   department
 shall conduct electricity and natural gas forecasting and
assessment activities to meet the requirements of paragraph (1) of
subdivision (a) of Section 25302, including, but not limited to, all
of the following:
   (1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
   (2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth, including, but not
limited to, projected population growth, urban development,
industrial expansion and energy intensity of industries, energy
demand for different building types, energy efficiency, and other
factors influencing demand for electricity. With respect to
long-range forecasts of the demand for natural gas, the report shall
include an evaluation of average conditions, as well as best and
worst case scenarios, and an evaluation of the impact of the
increasing use of renewable resources on natural gas demand.
   (3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems, including, but not limited
to, natural gas production capability both in and out of state,
natural gas interstate and intrastate pipeline capacity, storage and
use, and western regional and California electricity and transmission
system capacity and use.
   (4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
   (5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end-user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
   (6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the  commission
  department  shall propose market structure
changes to improve performance.
   (7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
   (8) (A) Compilation and assessment of existing scientific studies
that have been performed by persons or entities with expertise and
qualifications in the subject of the studies to determine the
potential vulnerability to a major disruption due to aging or a major
seismic event of large baseload generation facilities, of 1,700
megawatts or greater.
   (B) The assessment specified in subparagraph (A) shall include an
analysis of the impact of a major disruption on system reliability,
public safety, and the economy.
   (C) The  commission   department  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,  as
well as the Independent System Operator,  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   department  shall perform subsequent
updates as new data or new understanding of potential seismic hazards
emerge.
   (b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the  commission  
department  shall assess the current status of the following:
   (1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
   (A) Generation facility efficiency.
   (B) Air emission control technologies in use in operating plants.
   (C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
   (2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
   (c) In the absence of a long-term nuclear waste storage facility,
the  commission   department  shall assess
the potential state and local costs and impacts associated with
accumulating waste at California's nuclear powerplants. The 
commission   department  shall further assess other
key policy and planning issues that will affect the future role of
nuclear powerplants in the state.  The commission's
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. 116.    Section 25304 of the Public Resources Code is
amended to read: 
   25304.  The  commission   department 
shall conduct transportation forecasting and assessment activities to
meet the requirements of paragraph (2) of subdivision (a) of Section
25302 including, but not limited to:
   (a) Assessment of trends in transportation fuels, technologies,
and infrastructure supply and demand and the outlook for wholesale
and retail prices for petroleum, petroleum products, and alternative
transportation fuels under current market structures and expected
market conditions.
   (b) Forecasts of statewide and regional transportation energy
demand, both annual and seasonal, and the factors leading to
projected demand growth including, but not limited to, projected
population growth, urban development, vehicle miles traveled, the
type, class, and efficiency of personal vehicles and commercial
fleets, and shifts in transportation modes.
   (c) Evaluation of the sufficiency of transportation fuel supplies,
technologies, and infrastructure to meet projected transportation
demand growth. Assessment of crude oil and other transportation fuel
feedstock supplies; in-state, national, and worldwide production and
refining capacity; product output storage availability; and
transportation and distribution systems capacity and use.
   (d) Assessments of the risks of supply disruptions, price shocks,
or other events and the consequences of these events on the
availability and price of transportation fuels and effects on the
state's economy.
   (e) Evaluation of the potential for needed changes in the state's
energy shortage contingency plans to increase production and
productivity, improve efficiency of fuel use, increase conservation
of resources, and other actions to maintain sufficient, secure, and
affordable transportation fuel supplies for the state.
   (f) Evaluation of alternative transportation energy scenarios, in
the context of least environmental and economic costs, to examine
potential effects of alternative fuels usage, vehicle efficiency
improvements, and shifts in transportation modes on public health and
safety, the economy, resources, the environment, and energy
security.
   (g) Examination of the success of introduction, prices, and
availability of advanced transportation technologies, low- or
zero-emission vehicles, and clean-burning transportation fuels,
including their potential future contributions to air quality, energy
security, and other public interest benefits.
   (h) Recommendations to improve the efficiency of transportation
energy use, reduce dependence on petroleum fuels, decrease
environmental impacts from transportation energy use, and contribute
to reducing congestion, promoting economic development, and enhancing
energy diversity and security. 
  SEC. 117.    Section 25305 of the Public Resources Code is
amended to read: 
   25305.  The  commission   department 
shall rely upon forecasting and assessments performed in accordance
with Sections 25301 to 25304, inclusive, as the basis for analyzing
the success of and developing policy recommendations for public
interest energy strategies. Public interest energy strategies
include, but are not limited to, achieving energy efficiency and
energy conservation; implementing load management; pursuing research,
development, demonstration, and commercialization of new
technologies; promoting renewable generation technologies; reducing
statewide greenhouse gas emissions and addressing the impacts of
climate change on California; stimulating California's energy-related
business activities to contribute to the state's economy; and
protecting and enhancing the environment. Additional assessments to
address public interest energy strategies shall include, but are not
limited to, all of the following:
   (a) Identification of emerging trends in energy efficiency in the
residential, commercial, industrial, agricultural, and transportation
sectors of the state's economy, including, but not limited to,
evaluation of additional achievable energy efficiency measures and
technologies. Identification of policies that would permit fuller
realization of the potential for energy efficiency, either through
direct programmatic actions or facilitation of the market.
   (b) Identification of emerging trends in the renewable energy
industry. In addition, the  commission  
department  shall evaluate progress in ensuring the operation of
existing facilities, and the development of new and emerging,
in-state renewable resources.
   (c) Identification of emerging trends in energy research,
development, and demonstration activities that advance science or
technology to produce public benefits.
   (d) Identification of progress in reducing statewide greenhouse
gas emissions and addressing the effects of climate change on
California. 
  SEC. 118.    Section 25305.5 of the Public Resources Code
is amended to read: 
   25305.5.  The  commission  department 
shall include in its report prepared pursuant to Sections 25301 to
25304, inclusive, a description of international energy market
prospects and an evaluation of its export promotion activities, as
well as an assessment of the state of the California energy
technology and energy conservation industry's efforts to enter
foreign markets. The report shall also include recommendations for
state government initiatives to foster the California energy
technology and energy conservation industry's competition in world
markets. 
  SEC. 119.    Section 25306 of the Public Resources Code is
amended to read: 
   25306.  The  commission   department 
shall conduct workshops, hearings, and other forums to gain the
perspectives of the public and market participants for purposes of
the integrated energy policy report prepared pursuant to Section
25302 and the forecasting and assessments prepared pursuant to
Sections 25301, 25303, 25304, and 25305. The  commission
  department  shall include the comments, as well
as responses to those comments, of governmental agencies, industry
representatives, market participants, private groups, and any other
person concerning the  commission's   department'
s  proposals and recommendations in the docket for the
integrated energy policy report. 
  SEC. 120.    Section 25310 of the Public Resources Code is
amended to read: 
   25310.  On or before November 1, 2007, and by November 1 of every
third year thereafter, the  commission  
department  in consultation with the Public Utilities Commission
and local publicly owned electric utilities, in a public process
that allows input from other stakeholders, shall develop a statewide
estimate of all potentially achievable cost-effective electricity and
natural gas efficiency savings and establish targets for statewide
annual energy efficiency savings and demand reduction for the next
10-year period. The  commission   department
 shall base its estimate at least in part on information
developed pursuant to Sections 454.55, 454.56, 715, 9615, and 9615.5
of the Public Utilities Code. The  commission  
department  shall, for each electrical corporation and each gas
corporation, include in the integrated energy policy report, a
comparison of the public utility's annual targets established
pursuant to Sections 454.55 and 454.56, and the public utility's
actual energy efficiency savings and demand reductions. 
  SEC. 121.    Section 25320 of the Public Resources Code is
amended to read: 
   25320.  (a) The  commission   department
 shall manage a data collection system for obtaining information
necessary to develop the policy reports and analyses required by
Sections 25301 to 25307, inclusive, the energy shortage contingency
planning efforts in Chapter 8 (commencing with Section 25700), and to
support other duties of the  commission  
department  .
   (b) The data collection system, adopted by regulation under
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and managed by the 
commission   department  shall:
   (1) Include a timetable for the submission of this information, so
that the integrated energy policy report required by Section 25302
can be completed in an accurate and timely manner.
   (2) Require a person to submit only information that is reasonably
relevant, and that the person can either be expected to acquire
through his or her market activities, or possesses or controls.
Information collected pursuant to this section shall relate to the
functional role of each category of market participant in that
industry and the consumers within that industry.
   (3) To the extent it satisfies the information needs of the
 commission   department  , rely on the use
of estimates and proxies, to the maximum extent practicable, for
some data elements using survey and research techniques, while for
other information it shall obtain data from market participants using
submissions consistent with their accounting records. In determining
whether to rely upon estimates or participant provided data, the
 commission   department  shall weigh the
burden of compliance upon industry participants and energy consumers
against the benefit of  participant provided 
participant-provided  data for the public interest.
   (4) To the extent it satisfies the information needs of the
 commission   department  , rely on data,
to the maximum extent practicable, that is reported to other
government agencies or is otherwise available to the 
commission   department  .
   (c) Pursuant to the requirements of subdivision (b), the data
collection system for electricity and natural gas shall enumerate
specific requirements for each category of market participants,
including, but not limited to, private market participants, energy
service providers, energy service companies, natural gas marketers,
electric utility and natural gas utility companies, independent
generators, electric transmission entities, natural gas producers,
natural gas pipeline operators, importers and exporters of
electricity and natural gas, and specialized electric or natural gas
system operators. The  commission   department
 may also collect information about consumers' natural gas and
electricity use from their voluntary participation in surveys and
other research techniques.
   (d) Pursuant to the requirements of subdivision (b), the data
collection system for nonpetroleum fuels and transportation
technologies shall enumerate specific requirements for each category
of market participant, including, but not limited to, fuel importers
and exporters, fuel distributors and retailers, fuel pipeline
operators, natural gas liquid producers, and transportation
technology providers. The  commission  
department  may also collect information about consumers'
nonpetroleum fuel and transportation technology use from their
voluntary participation in surveys and other research techniques.
   (e) The  commission   department  shall
collect data for petroleum fuel pursuant to Chapter 4.5 (commencing
with Section 25350). The  commission  
department  may also collect information about consumers'
petroleum fuel use from consumers' participation in surveys and other
research techniques. 
  SEC. 122.    Section 25321 of the Public Resources Code is
amended to read: 
   25321.  In order to ensure timely and accurate compliance with the
data collection system adopted under Section 25320, the 
commission   department  may use any of the
following enforcement measures:
   (a) If any person fails to comply with an applicable provision of
the data collection system, the  commission  
department  shall notify the person. If, after five working days
from being notified of the violation, the person continues to fail
to comply, the person shall be subject to a civil penalty, to be
imposed by the  commission   department 
after a hearing that complies with constitutional requirements.
   (1) The civil penalty shall not be less than five hundred dollars
($500) nor more than two thousand dollars ($2,000) for each category
of data the person did not provide and for each day the violation has
existed and continues to exist.
   (2) In the case of a person who willfully makes any false
statement, representation, or certification in any record, report,
plan, or other document filed with the 
                          commission   department 
, the civil penalty shall not be less than five hundred dollars
($500) nor more than two thousand dollars ($2,000) per day applied to
each day in the interval between the original due date and the date
when corrected information is submitted.
   (b) For the purposes of this section, "person" means, in addition
to the definition contained in Section 25116, any responsible
corporate officer.
   (c) Enforcement measures for petroleum and other fuels shall be
those contained in Section 25362. 
  SEC. 123.    Section 25322 of the Public Resources Code is
amended to read: 
   25322.  (a) The data collection system managed pursuant to Section
25320 shall include the following requirements regarding the
confidentiality of the information collected by the
commission   department  :
   (1) Any person required to present information to the 
commission   department  pursuant to this section
may request that specific information be held in confidence. The
 commission   department  shall grant the
request in any of the following circumstances:
   (A) The information is exempt from disclosure under the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
   (B) The information satisfies the confidentiality requirements of
Article 2 (commencing with Section 2501) of Chapter 7 of Division 2
of Title 20 of the California Code of Regulations, as those
regulations existed on January 1, 2002.
   (C) On the facts of the particular case, the public interest
served by not disclosing the information clearly outweighs the public
interest served by disclosure of the information.
   (2) The  commission   department  may,
by regulation, designate certain categories of information as
confidential, which removes the obligation to request confidentiality
for that information.
   (3) Any confidential information pertinent to the responsibilities
of the  commission   department  specified
in this chapter that is obtained by another state agency, or the
California Independent System Operator or its successor, shall be
available to the  commission   department 
and shall be treated in a confidential manner.
   (4) Information presented to or developed by the 
commission   department  and deemed confidential
pursuant to this section shall be held in confidence by the 
commission   department  . Confidential information
shall be aggregated or masked to the extent necessary to 
assure   ensure  confidentiality if public
disclosure of the specific information would result in an unfair
competitive disadvantage to the person supplying the information.
   (b) Requests for records of information shall be handled as
follows:
   (1) If the  commission   department 
receives a written request to publicly disclose information that is
being held in confidence pursuant to paragraph (1) or (2) of
subdivision (a), the commission   department
 shall provide the person making the request with written
justification for the confidential designation and a description of
the process to seek disclosure.
   (2) If the  commission   department 
receives a written request to publicly disclose a disaggregated or
unmasked record of information designated as confidential under
paragraph (1) or (2) of subdivision (a), notice of the request shall
be provided to the person that submitted the record. Upon receipt of
the notice, the person that submitted the record may, within five
working days of receipt of the notice, provide a written
justification of the claim of confidentiality.
   (3) The  commission   department  or its
designee shall rule on a request made pursuant to paragraph (2) on
or before 20 working days after its receipt. The  commission
  department  shall deny the request if the
disclosure will result in an unfair competitive disadvantage to the
person that submitted the information.
   (4) If the  commission   department 
grants the request pursuant to paragraph (3), it shall withhold
disclosure for a reasonable amount of time, not to exceed 14 working
days, to allow the submitter of the information to seek judicial
review.
   (c)  No information   Information 
submitted to the  commission   department 
pursuant to this section is  not  confidential if the person
submitting the information has made it public.
   (d) The  commission   department  shall
establish, maintain, and use appropriate security practices and
procedures to ensure that the information it has designated as
confidential, or received with a confidential designation from
another government agency, is protected against disclosure other than
that authorized using the procedures in subdivision (b). The
 commission   department  shall incorporate
the following elements into its security practices and procedures:
   (1)  Commission   Department  employees
shall sign a confidential data disclosure agreement providing for
various remedies, including, but not limited to, fines and
termination for wrongful disclosure of confidential information.
   (2)  Commission   Department  employees,
or contract employees of the  commission 
department  , shall only have access to confidential information
when it is appropriate to their job assignments and if they have
signed a nondisclosure agreement.
   (3) Computer data systems that hold confidential information shall
include sufficient security measures to protect the data from
inadvertent or wrongful access by unauthorized  commission
  department  employees and the public.
   (e) Data collected by the  commission  
department  on petroleum fuels in Section 25320 shall be subject
to the confidentiality provisions of Sections 25364 to 25366,
inclusive. 
  SEC. 124.    Section 25323 of the Public Resources Code is
amended to read: 
   25323.   Nothing in this   This 
division  shall   does not  authorize the
 commission   department  in the
performance of its analytical, planning, siting, or certification
responsibilities to mandate a specified supply plan for any utility.

  SEC. 125.    Section 25324 of the Public Resources Code is
amended to read: 
   25324.  The  commission   department  ,
in consultation with the Public Utilities Commission, the California
Independent System Operator, transmission owners, users, and
consumers, shall  develop and the board 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   each 
integrated energy policy report adopted  on November 1, 2005,
 pursuant to subdivision (a) of Section 25302. 
  SEC. 126.    Section 25331 of the Public Resources Code is
amended to read: 
   25331.  (a) The  commission   board  may
designate a transmission corridor zone on its own motion or by
application of a person who plans to construct a high-voltage
electric transmission line within the state. The designation of a
transmission corridor zone shall serve to identify a feasible
corridor where one or more future high-voltage electric transmission
lines can be built that are consistent with the state's needs and
objectives as set forth in the strategic plan adopted pursuant to
Section 25324.
   (b) A person planning to construct a high-voltage electric
transmission line may submit to the  commission 
 board  an application to designate a proposed transmission
corridor zone as being consistent with the strategic plan adopted
pursuant to Section 25324. The application shall be in the form
prescribed by the  commission   board  and
shall be supported by any information that the  commission
  board  may require. 
  SEC. 127.    Section 25332 of the Public Resources Code is
amended to read: 
   25332.  The designation of a transmission corridor zone is subject
to the California Environmental Quality Act (Division 13 (commencing
with Section 21000)). The  commission  
department  shall be the lead agency, as provided in Section
21165, for all transmission corridor zones proposed for designation
pursuant to this chapter. 
  SEC. 128.    Section 25333 of the Public Resources Code is
amended to read: 
   25333.  (a) In developing a strategic plan pursuant to Section
25324 or considering an application for designation pursuant to this
chapter, the  commission   department 
shall confer with cities and counties, federal agencies, and
California Native American tribes to identify appropriate areas
within their jurisdictions that may be suitable for a transmission
corridor zone. The  commission   department
 shall, to the extent feasible, coordinate efforts to identify
long-term transmission needs of the state with the land use plans of
cities, counties, federal agencies, and California Native American
tribes.
   (b) The  commission   board  shall not
designate a transmission corridor zone within the jurisdiction of a
California Native American tribe without the approval of the
California Native American tribe. 
  SEC. 129.    Section 25334 of the Public Resources Code is
amended to read: 
   25334.  (a) Upon receipt of an application or upon its own motion
for designation of a transmission corridor zone, the 
commission   board  shall arrange for the
publication of a summary of the application in a newspaper of general
circulation in each county where the proposed transmission corridor
zone would be located, and shall notify all property owners within,
or adjacent to, the transmission corridor zone. The 
commission   department  shall transmit a copy of
the application for designation to all cities, counties, and state
and federal agencies having an interest in the proposed transmission
corridor zone. The  commission   department
 shall publish the application for designation on its Internet
Web site, and notify members of the public that the application is
available on the  commission's   department's
 Internet Web site.
   (b) As soon as practicable after the receipt of an application or
upon  its own   the board's  motion for
designation of a transmission corridor zone, the  commission
  department  shall notify cities, counties, state
and federal agencies, and California Native American tribes in whose
jurisdictions the proposed transmission corridor zone would be
located regarding the proposed transmission corridor zone and the
objectives of the most recent strategic plan for the state's electric
transmission grid. The  commission's  
department's  notice shall solicit information from, and the
 commission   department  shall confer
with, all interested cities, counties, state and federal agencies,
and California Native American tribes regarding their land use plans,
existing land uses, and other factors in which they have expertise
or interest with respect to the proposed transmission corridor zone.
The  commission   department  shall provide
any interested city, county, state or federal agency, California
Native American tribe, or member of the public, including any
property owner within the proposed transmission corridor zone, ample
opportunity to participate in the  commission's 
 board's  review of a proposed transmission corridor zone.
   (c) The  commission   department  shall
request affected cities, counties, state and federal agencies, the
Electricity Oversight Board, the Independent System Operator,
interested California Native American tribes, and members of the
public, including any property owner within the proposed transmission
corridor zone, to provide comments on the suitability of the
proposed transmission corridor zone with respect to environmental,
public health and safety, land use, economic, and transmission-system
impacts or other factors on which they may have expertise.
   (d) The  commission   department  shall
require a person who files an application for the designation of a
transmission corridor zone to pay a fee sufficient to reimburse the
 commission   department  for all costs
associated with reviewing the application. If the  commission
  board  initiates the designation of a
transmission corridor zone on its own motion, the  commission
  department  shall fix the surcharge imposed
pursuant to subdivision (b) of Section 40016 of the Revenue and
Taxation Code, at a level sufficient to cover the  commission'
s   department's  added costs.
   (e) Upon receiving the  commission's  
department's  request for review of a proposed transmission
corridor zone, a city or county may request a fee pursuant to Section
25538 to cover for the actual and added costs of this review and the
 commission  department  shall pay this
amount to the city or county. 
  SEC. 130.   Section 25335 of the Public Resources Code is
amended to read: 
   25335.  (a) Within 45 days of receipt of the application or motion
for designation, the  commission   board 
shall commence public informational hearings in the county or
counties where the proposed transmission corridor zone would be
located.
   (b) The purpose of the hearings shall be to do all of the
following:
   (1) Provide information about the proposed transmission corridor
zone so that the public and interested agencies have a clear
understanding of what is being proposed.
   (2) Explain the relationship of the proposed transmission corridor
zone to the  commission's   board's 
strategic plan for the state's electric transmission grid, as set
forth in the most recent integrated energy policy report adopted
pursuant to Chapter 4 (commencing with Section 25300).
   (3) Receive initial comments about the proposed transmission
corridor zone from the public and interested agencies.
   (4) Solicit information on reasonable alternatives to the proposed
transmission corridor zone. 
  SEC. 131.    Section 25336 of the Public Resources Code is
amended to read: 
   25336.  (a) Within 155 days of the final informational hearing,
the  commission   board  shall conduct a
prehearing conference to determine the issues to be considered in
hearings pursuant to this section, to identify the dates for the
hearings, and to set forth filing dates for public comments and
testimony from the parties and interested agencies. Within 15 days of
the prehearing conference, the  commission 
board  shall issue a hearing order setting forth the issues to
be heard, the dates of the hearings, and the filing dates for
comments and testimony.
   (b) The  commission   board  shall
conduct hearings pursuant to the hearing order. The purpose of the
hearings shall be to receive information upon which the 
commission   board  can make findings and
conclusions pursuant to Section 25337. 
  SEC. 132.    Section 25337 of the Public Resources Code is
amended to read: 
   25337.  After the conclusion of hearings conducted pursuant to
Section 25336, and no later than 180 days after the date of
certification of the environmental impact report prepared pursuant to
Section 25332, the  commission   board 
shall issue a proposed decision that contains its findings and
conclusions regarding all of the following matters:
   (a) Conformity of the proposed transmission corridor zone with the
strategic plan adopted pursuant to Section 25324.
   (b) Suitability of the proposed transmission corridor zone with
respect to environmental, public health and safety, land use,
economic, and transmission-system impacts.
   (c) Mitigation measures and alternatives as may be needed to
protect environmental quality, public health and safety, the state's
electric transmission grid, or any other relevant matter.
   (d) Other factors that the  commission  
board  considers relevant. 
  SEC. 133.    Section 25338 of the Public Resources Code is
amended to read: 
   25338.  As soon as practicable after the  commission
  board  designates a transmission corridor zone,
 it   the department  shall post a copy of
 its   the board's  decision on 
its   the department's  Internet Web site, send a
copy of  its   the board's  decision,
including a description of the transmission corridor zone, to each
affected city, county, state agency, and federal agency, and notify
property owners within or adjacent to the corridor of the
availability of the decision on the  commission's 
 department's  Internet Web site. 
  SEC. 134.    Section 25339 of the Public Resources Code is
amended to read: 
   25339.  After the  commission   board 
designates a transmission corridor zone,  it  
the department  shall identify that transmission corridor zone
in its subsequent strategic plans adopted  by the board 
pursuant to Section 25324. The  commission  
board  shall regularly review and revise its designated
transmission corridor zones as necessary, but not less than once
every 10 years. In revising designations of transmission corridor
zones, the  commission   board  shall
follow the procedures of this chapter. If, upon regular review or at
any other time, the  commission   board 
finds that a transmission corridor zone is no longer needed, the
commission shall revise or repeal the designation and, as soon as
practicable, notify the affected cities, counties, state and federal
agencies, and property owners within, or adjacent to, the
transmission corridor zone. 
  SEC. 135.    Section 25340 of the Public Resources Code is
amended to read: 
   25340.  After receiving notice from the  commission
  department  regarding the designation or revision
 by the board  of a transmission corridor zone within its
jurisdiction, each city or county shall consider the designated
transmission corridor zone when making a determination regarding a
land use change within or adjacent to the transmission corridor zone
that could affect its continuing viability to accommodate a
transmission line planned within the transmission corridor zone.
Nothing in this section shall preclude compatible uses within or
adjacent to a designated transmission corridor zone. 
  SEC. 136.    Section 25341 of the Public Resources Code is
amended to read: 
   25341.  (a) Within a designated transmission corridor zone, within
10 days of accepting as complete an application pursuant to Section
65943 of the Government Code for a development project that a city or
county determines would threaten the potential to construct a
high-voltage electric transmission line, the city or county shall
notify the  commission   board  of the
proposed development project. The notice shall include a copy of the
application, and set a deadline that is not less than 60 days from
the date of the notice for the commission to provide written comments
to the city or county regarding the proposed development project.
   (b) If the  commission   board  finds
that the proposed development project would threaten the potential to
construct a high-voltage electric transmission line within the
designated transmission corridor zone, the  commission
  board  shall provide written comments to the city
or county. The  commission   board  may
recommend revisions to, redesign of, or mitigation measures for the
proposed development project that would eliminate or reduce the
threat.
   (c) The city or county shall consider the  commission's
 board's  comments, if any, prior to acting on the
proposed development project. If the  commission 
 board  objects to the proposed development project, the
city or county shall provide a written response that shall address in
detail why it did not accept the  commission's 
 board's  comments and recommendations. 
  SEC. 137.    Section 25354 of the Public Resources Code is
amended to read: 
   25354.  (a) Each refiner and major marketer shall submit
information each month to the  commission  
department  in  such   the  form and
extent as the  commission   department 
prescribes pursuant to this section. The information shall be
submitted within 30 days after the end of each monthly reporting
period and shall include the following:
   (1) Refiners shall report, for each of their refineries, feedstock
inputs, origin of petroleum receipts, imports of finished petroleum
products and blendstocks, by type, including the source of those
imports, exports of finished petroleum products and blendstocks, by
type, including the destination of those exports, refinery outputs,
refinery stocks, and finished product supply and distribution,
including all gasoline sold unbranded by the refiner, blender, or
importer.
   (2) Major marketers shall report on petroleum product receipts and
the sources of these receipts, inventories of finished petroleum
products and blendstocks, by type, distributions through branded and
unbranded distribution networks, and exports of finished petroleum
products and blendstocks, by type, from the state.
   (b) Each major oil producer, refiner, marketer, oil transporter,
and oil storer shall annually submit information to the 
commission   department  in  such 
 the  form and extent as the  commission 
 department  prescribes pursuant to this section. The
information shall be submitted within 30 days after the end of each
reporting period, and shall include the following:
   (1) Major oil transporters shall report on petroleum by reporting
the capacities of each major transportation system, the amount
transported by each system, and inventories thereof. The 
commission  department  may prescribe rules and
regulations that exclude pipeline and transportation modes operated
entirely on property owned by major oil transporters from the
reporting requirements of this section if the data or information is
not needed to fulfill the purposes of this chapter. The provision of
the information shall not be construed to increase or decrease any
authority the Public Utilities Commission may otherwise have.
   (2) Major oil storers shall report on storage capacity,
inventories, receipts and distributions, and methods of
transportation of receipts and distributions.
   (3) Major oil producers shall, with respect to thermally enhanced
oil recovery operations, report annually by designated oil field, the
monthly use, as fuel, of crude oil and natural gas.
   (4) Refiners shall report on facility capacity, and utilization
and method of transportation of refinery receipts and distributions.
   (5) Major oil marketers shall report on facility capacity and
methods of transportation of receipts and distributions.
   (c) Each person required to report pursuant to subdivision (a)
shall submit a projection each month of the information to be
submitted pursuant to subdivision (a) for the quarter following the
month in which the information is submitted to the 
commission   department  .
   (d) In addition to the data required under subdivision (a), each
integrated oil refiner  (produces   (who
produces  , refines, transports, and markets in interstate
commerce) who supplies more than 500 branded retail outlets in
California shall submit to the  commission  
department  an annual industry forecast for Petroleum
Administration for Defense, District V (covering  Alaska, 
Arizona,  California, Hawaii,  Nevada,  Washington,
Oregon, California, Alaska, and Hawaii)   Oregon, and
Washington)  . The forecast shall include the information to be
submitted under subdivision (a), and shall be submitted by March 15
of each year. The  commission   department 
may require California-specific forecasts. However, those forecasts
shall be required only if the  commission  
department  finds them necessary to carry out its
responsibilities.
   (e) The  commission   department  may by
order or regulation modify the reporting period as to any individual
item of information setting forth in the order or regulation its
reason for so doing.
   (f) The  commission   department  may
request additional information as necessary to perform its
responsibilities under this chapter.
   (g) Any person required to submit information or data under this
chapter, in lieu thereof, may submit a report made to any other
governmental agency, if:
   (1) The alternate report or reports contain all of the information
or data required by specific request under this chapter.
   (2) The person clearly identifies the specific request to which
the alternate report is responsive.
   (h) Each refiner shall submit to the  commission 
 department  , within 30 days after the end of each monthly
reporting period, all of the following information in such form and
extent as the  commission   department 
prescribes:
   (1) Monthly California weighted average prices and sales volumes
of finished leaded regular, unleaded regular, and premium motor
gasoline sold through company-operated retail outlets, to other
end-users, and to wholesale customers.
   (2) Monthly California weighted average prices and sales volumes
for residential sales, commercial and institutional sales, industrial
sales, sales through company-operated retail outlets, sales to other
end-users, and wholesale sales of No. 2 diesel fuel and No. 2 fuel
oil.
   (3) Monthly California weighted average prices and sales volumes
for retail sales and wholesale sales of No. 1 distillate, kerosene,
finished aviation gasoline, kerosene-type jet fuel, No. 4 fuel oil,
residual fuel oil with 1 percent or less sulfur, residual fuel oil
with greater than 1 percent sulfur and consumer grade propane.
   (i) (1) Beginning the first week after the effective date of the
act that added this subdivision, and each week thereafter, an oil
refiner, oil producer, petroleum product transporter, petroleum
product marketer, petroleum product pipeline operator, and terminal
operator, as designated by the  commission  
department  , shall submit a report in the form and extent as
the  commission   department  prescribes
pursuant to this section. The  commission  
department  may determine the form and extent necessary by order
or by regulation.
   (2) A report may include any of the following information:
   (A) Receipts and inventory levels of crude oil and petroleum
products at each refinery and terminal location.
   (B) Amount of gasoline, diesel, jet fuel, blending components, and
other petroleum products imported and exported.
   (C) Amount of gasoline, diesel, jet fuel, blending components, and
other petroleum products transported intrastate by marine vessel.
                                     (D) Amount of crude oil
imported, including information identifying the source of the crude
oil.
   (E) The regional average of invoiced retailer buying price. This
subparagraph does not either preclude or augment the current
authority of the  commission   department 
to collect additional data under subdivision (f).
   (3) This subdivision is intended to clarify the 
commission's   department's  existing authority
under subdivision (f) to collect specific information. This
subdivision does not either preclude or augment the existing
authority of the  commission   department 
to collect information. 
  SEC. 138.    Section 25356 of the Public Resources Code is
amended to read: 
   25356.  (a) The  commission   department
 , utilizing its own staff and other support staff having
expertise and experience in, or with, the petroleum industry, shall
gather, analyze, and interpret the information submitted to it
pursuant to Section 25354 and other information relating to the
supply and price of petroleum products, with particular emphasis on
motor vehicle fuels, including, but not limited to, all of the
following:
   (1) The nature, cause, and extent of any petroleum or petroleum
products shortage or condition affecting supply.
   (2) The economic and environmental impacts of any petroleum and
petroleum product shortage or condition affecting supply.
   (3) Petroleum or petroleum product demand and supply forecasting
methodologies utilized by the petroleum industry in California.
   (4) The prices, with particular emphasis on retail motor fuel
prices, including sales to unbranded retail markets, and any
significant changes in prices charged by the petroleum industry for
petroleum or petroleum products sold in California and the reasons
for those changes.
   (5) The profits, both before and after taxes, of the industry as a
whole and of major firms within it, including a comparison with
other major industry groups and major firms within them as to
profits, return on equity and capital, and price-earnings ratio.
   (6) The emerging trends relating to supply, demand, and
conservation of petroleum and petroleum products.
   (7) The nature and extent of efforts of the petroleum industry to
expand refinery capacity and to make acquisitions of additional
supplies of petroleum and petroleum products, including activities
relative to the exploration, development, and extraction of resources
within the state.
   (8) The development of a petroleum and petroleum products
information system in a manner that will enable the state to take
action to meet and mitigate any petroleum or petroleum products
shortage or condition affecting supply.
   (b) The  commission   department  shall
analyze the impacts of state and federal policies and regulations
upon the supply and pricing of petroleum products. 
  SEC. 139.    Section 25357 of the Public Resources Code is
amended to read: 
   25357.  The  commission   department 
shall obtain and analyze monthly production reports prepared by the
State Oil and Gas Supervisor pursuant to Section 3227. 
  SEC. 140.    Section 25358 of the Public Resources Code is
amended to read: 
   25358.  (a) Within 70 days after the end of each preceding quarter
of each calendar year, the  commission  
department  shall publish and submit to the Governor and the
Legislature a summary, an analysis, and an interpretation of the
information submitted to it pursuant to Section 25354 and information
reviewed pursuant to Section 25357. This report shall be separate
from the report submitted pursuant to Section  25322.
  25302.  Any person may submit comments in writing
regarding the accuracy or sufficiency of the information submitted.
   (b) The  commission   department  shall
prepare a biennial assessment of the information provided pursuant to
this chapter and shall include its assessment in the biennial fuels
report prepared pursuant to Section 25310.
   (c) The  commission   department  may
use reasonable means necessary and available to it to seek and obtain
any facts, figures, and other information from any source for the
purpose of preparing and providing reports to the Governor and the
Legislature. The  commission   department 
shall specifically include in the reports its analysis of any
unsuccessful attempts in obtaining information from potential
sources, including the lack of cooperation or refusal to provide
information.
   (d) Whenever the  commission   department
 fails to provide any report required pursuant to this section
within the specified time, it shall provide to all members of the
Legislature, within five days of the specified time, a detailed
written explanation of the cause of any delay. 
  SEC. 141.    Section 25362 of the Public Resources Code is
amended to read: 
   25362.  (a) The  commission   department
 shall notify those persons who have failed to timely provide
the information specified in Section 25354. If, within five days
after being notified of the failure to provide the specified
information, the person fails to supply the specified information,
the person shall be subject to a civil penalty of not less than five
hundred dollars ($500) nor more than two thousand dollars ($2,000)
per day for each day the submission of information is refused or
delayed, unless the person has timely filed objections with the
 commission     department 
regarding the information and the  commission 
department  has not yet held a hearing on the matter, or the
 commission   department  has held a
hearing and the person has properly submitted the issue to a court of
competent jurisdiction for review.
   (b) Any person who willfully makes any false statement,
representation, or certification in any record, report, plan, or
other document filed with the  commission  
department  shall be subject to a civil penalty not to exceed
two thousand dollars ($2,000).
   (c) For the purposes of this section, the term "person" shall
mean, in addition to the definition contained in Section 25116, any
responsible corporate officer. 
  SEC. 142.    Section 25364 of the Public Resources Code is
amended to read: 
   25364.  (a)  Any   A  person required to
present information to the  commission  
department  pursuant to Section 25354 may request that specific
information be held in confidence. Information requested to be held
in confidence shall be presumed to be confidential.
   (b) Information presented to the commission  
department  pursuant to Section 25354 shall be held in
confidence by the  commission   department 
or aggregated to the extent necessary to  assure 
 ensure  confidentiality if public disclosure of the
specific information or data would result in unfair competitive
disadvantage to the person supplying the information.
   (c) (1) Whenever the  commission   department
 receives a request to publicly disclose unaggregated
information, or otherwise proposes to publicly disclose information
submitted pursuant to Section 25354, notice of the request or
proposal shall be provided to the person submitting the information.
The notice shall indicate the form in which the information is to be
released. Upon receipt of notice, the person submitting the
information shall have 10 working days in which to respond to the
notice to justify the claim of confidentiality on each specific item
of information covered by the notice on the basis that public
disclosure of the specific information would result in unfair
competitive disadvantage to the person supplying the information.
   (2) The  commission   department  shall
consider the respondent's submittal in determining whether to
publicly disclose the information submitted to it to which a claim of
confidentiality is made. The  commission  
department  shall issue a written decision  which
  that  sets forth its reasons for making the
determination whether each item of information for which a claim of
confidentiality is made shall remain confidential or shall be
publicly disclosed.
   (d) The  commission   department  shall
not make public disclosure of information submitted to it pursuant to
Section 25354 within 10 working days after the  commission
  department  has issued its written decision
required in this section.
   (e)  No information   Information 
submitted to the  commission   department 
pursuant to Section 25354 shall  not  be deemed confidential
if the person submitting the information or data has made it public.

   (f) With respect to petroleum products and blendstocks reported by
type pursuant to paragraph (1) or (2) of subdivision (a) of Section
25354 and information provided pursuant to subdivision (h) or (i) of
Section 25354, neither the  commission  
department  nor any employee of the  commission
  department  may do any of the following:
   (1) Use the information furnished under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 for any purpose other than the statistical purposes for
which it is supplied.
   (2) Make any publication whereby the information furnished by any
particular establishment or individual under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 can be identified.
   (3) Permit anyone other than  commission  
department  members and employees of the  commission
  department  to examine the individual reports
provided under paragraph (1) or (2) of subdivision (a) of Section
25354 or under subdivision (h) or (i) of Section 25354.
   (g) Notwithstanding any other provision of law, the 
commission   department  may disclose confidential
information received pursuant to subdivision (a) of Section 25304 or
Section 25354 to the State Air Resources Board if the state board
agrees to keep the information confidential. With respect to the
information it receives, the state board shall be subject to all
pertinent provisions of this section. 
  SEC. 143.    Section 25366 of the Public Resources Code is
amended to read: 
   25366.  Any confidential information pertinent to the
responsibilities of the  commission   department
 specified in this division  which   that
 is obtained by another state agency shall be available to the
 commission   department  and shall be
treated in a confidential manner. 
  SEC. 144.    Section 25400 of the Public Resources Code is
amended to read: 
   25400.  The  commission   department 
shall conduct an ongoing assessment of the opportunities and
constraints presented by all forms of energy. The  commission
  department  shall encourage the balanced use of
all sources of energy to meet the state's needs and shall seek to
avoid possible undesirable consequences of reliance on a single
source of energy. 
  SEC. 145.    Section 25401 of the Public Resources Code is
amended to read: 
   25401.   (a)    The  commission
  department  shall continuously carry out studies,
research projects, data collection, and other activities required to
assess the nature, extent, and distribution of energy resources to
meet the needs of the state, including  ,  but not limited
to, fossil fuels and solar, nuclear, and geothermal energy resources.
It shall also carry out studies, technical assessments, research
projects, and data collection directed to reducing wasteful,
inefficient, unnecessary, or uneconomic uses of energy, including,
but not limited to, all of the following: 
   (a) 
    (1)  Pricing of electricity and other forms of energy.

   (b) 
    (2)  Improved building design and insulation. 
   (c) 
    (3)  Restriction of promotional activities designed to
increase the use of electrical energy by consumers. 
   (d) 
    (4)  Improved appliance efficiency. 
   (e) 
    (5)  Advances in power generation and transmission
technology. 
   (f) 
    (6)  Comparisons in the efficiencies of alternative
methods of energy utilization. 
   The commission 
    (b)     The department  shall survey
pursuant to this section all forms of energy on which to base its
recommendations to the Governor and Legislature for elimination of
waste or increases in efficiency for sources or uses of energy. The
 commission   department  shall transmit to
the Governor and the Legislature, as part of the biennial report
specified in Section  25309,   25302, 
recommendations for state policy and actions for the orderly
development of all potential sources of energy to meet the state's
needs, including, but not limited to, fossil fuels and solar,
nuclear, and geothermal energy resources, and to reduce wasteful and
inefficient uses of energy. 
  SEC. 146.    Section 25401.2 of the Public Resources Code
is amended to read: 
   25401.2.  (a) As part of the report required by Section 25302, the
 commission   department  shall develop
and update an inventory of current and potential cost-effective
opportunities in each utility's service territory, to improve
efficiencies and to help utilities manage loads in all sectors of
natural gas and electricity use. The report shall include estimates
of the overall magnitude of these resources, load shapes, and the
projected costs associated with delivering the various types of
energy savings that are identified in the inventory. The report shall
also estimate the amount and incremental cost per unit of potential
energy efficiency and load management activities. Where applicable,
the inventory shall include data on variations in savings and costs
associated with particular measures. The report shall take into
consideration environmental benefits as developed in related 
commission   department  and  public
utilities commission   Public Utilities Commission 
proceedings.
   (b) The  commission   department  shall
develop and maintain the inventory in consultation with electric and
gas utilities, the Public Utilities Commission, academic
institutions, and other interested parties.
   (c) The commission   department  shall
convene a technical advisory group to develop an  analytic
  analytical  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. 147.    Section 25401.5 of the Public Resources Code
is amended to read: 
   25401.5.  For the purpose of reducing electrical and natural gas
energy consumption, the  commission   department
 may develop and disseminate measures that would enhance energy
efficiency for single-family residential dwellings that were built
prior to the development of the current energy efficiency standards.
The measures, if developed and disseminated, shall provide a
homeowner with information to improve the energy efficiency of a
single-family residential dwelling. The  commission
 department  may comply with this section by posting the
measures on the  commission's   department's
 Internet Web site or by making the measures available to the
public, upon request. 
  SEC. 148.    Section 25401.6 of the Public Resources Code
is amended to read: 
   25401.6.  (a) In its administration of Section 25744, the 
commission   department  shall establish a
separate rebate for eligible distributed emerging technologies for
affordable housing projects including, but not limited to, projects
undertaken pursuant to Section 50052.5, 50053, or 50199.4 of the
Health and Safety Code. In establishing the rebate, where the
 commission   department  determines that
the occupants of the housing shall have individual meters, the
 commission   department  may adjust the
amount of the rebate based on the capacity of the system, provided
that a system may receive a rebate only up to 75 percent of the total
installed costs. The  commission   department
 may establish a reasonable limit on the total amount of funds
dedicated for purposes of this section.
   (b) It is the intent of the Legislature that this section fulfills
the purpose of paragraph (5) of subdivision (b) of Section 25744.

  SEC. 149.    Section 25401.7 of the Public Resources Code
is amended to read: 
   25401.7.  At the time a single-family residential dwelling is
sold, a buyer or seller may request a home inspection, as defined in
subdivision (a) of Section 7195 of the Business and Professions Code,
and a home inspector, as defined in subdivision (d) of Section 7195
of the Business and Professions Code, shall provide, contact
information for one or more of the following entities that provide
home energy information:
   (a) A nonprofit organization.
   (b) A provider to the residential dwelling of electrical service,
or gas service, or both.
   (c) A government agency, including, but not limited to, the
 commission   department  . 
  SEC. 150.    Section 25401.9 of the Public Resources Code
is amended to read: 
   25401.9.  (a) To the extent that funds are available, the 
commission,   board,  in consultation with the
Department of Water Resources, shall adopt by regulation, after
holding one or more public hearings, performance standards and
labeling requirements for landscape irrigation equipment, including,
but not limited to, irrigation controllers, moisture sensors,
emission devices, and valves, for the purpose of reducing the
wasteful, uneconomic, inefficient, or unnecessary consumption of
energy or water.
   (b) For the purposes of complying with subdivision (a), the
 commission   board  shall do all of the
following:
   (1) Adopt performance standards and labeling requirements for
landscape irrigation controllers and moisture sensors on or before
January 1, 2010.
   (2) Consider the Irrigation Association's Smart Water Application
Technology Program testing protocols when adopting performance
standards for landscape irrigation equipment, including, but not
limited to, irrigation controllers, moisture sensors, emission
devices, and valves.
   (3) Prepare and submit a report to the Legislature, on or before
January 1, 2010, that sets forth on a proposed schedule for adopting
performance standards and labeling requirements for emission devices
and valves.
   (c) On and after January 1, 2012, an irrigation controller or
moisture sensor for landscape irrigation uses may not be sold or
installed in the state unless the controller or sensor meets the
performance standards and labeling requirements established pursuant
to this section. 
  SEC. 151.    Section 25402 of the Public Resources Code is
amended to read: 
   25402.  The  commission  board, with the
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
  board  shall periodically update the standards
and adopt any revision that, in its judgment, it deems necessary. Six
months after the  commission   board 
certifies an energy conservation manual pursuant to subdivision (c)
of Section 25402.1,  no   a  city, county,
city and county, or state agency shall  not  issue a permit
for any building unless the building satisfies the standards
prescribed by the  commission   board 
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   board  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   board  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
  board  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
  board  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   board  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   board 
shall issue a joint finding whether the standard (A) is equivalent or
superior in performance, safety, and for the protection of life,
health, and general welfare to standards in the California Building
Standards Code and (B) does not unreasonably or unnecessarily impact
the ability of Californians to purchase or rent affordable housing,
as determined by taking account of the overall benefit derived from
the water conservation design standards. Nothing in this subdivision
in any way reduces the authority of the Department of Housing and
Community Development to adopt standards and regulations pursuant to
Part 1.5 (commencing with Section 17910) of Division 13 of the Health
and Safety Code.
   (2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to  subdivisions
  this subdivision and subdivision  (a) 
and (b)  , the  commission   board
 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   board 
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
  board  shall take into consideration prior to the
start of the notice of proposed action any input provided during
these public meetings.
   (3) The standards adopted or revised pursuant to 
subdivisions   this subdivision and subdivision 
(a)  and (b)  shall be cost-effective when taken in
their entirety and when amortized over the economic life of the
structure compared with historic practice. When determining
cost-effectiveness, the  commission   board
 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  
board  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   board
 , 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  and
 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   board  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
  board  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   board  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   board
 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
  board  shall consider other relevant factors, as
required by Sections 11346.5 and 11357 of the Government Code,
including, but not limited to, the impact on housing costs, the total
statewide costs and benefits of the standard over its lifetime,
economic impact on California businesses, and alternative approaches
and their associated costs.
   (2)  No   A  new appliance, except for
any plumbing fitting, regulated under paragraph (1), that is
manufactured on or after July 1, 1984,  may  
shall not  be sold, or offered for sale, in the state, unless
the date of the manufacture is permanently displayed in an accessible
place on that appliance.
   (3) During the period of five years after the  commission
  board  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
  board  adopts other cost-effective measures for
that appliance.
   (4) Neither the  commission   board  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   board  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   board  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   board  after
consultation with manufacturers doing business in the state and
appropriate trade or industry associations on sales of appliances so
that the  commission   board  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   board  to carry out the
purposes of the study. The  commission   board
and the department  shall treat any sales information of an
individual manufacturer as confidential and that information shall
not be a public record. The  commission   board
 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   board 
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 
 board  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
  board  may adopt standards pursuant to 
Commission   the former State Energy Resources
Conservation and Development 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   board  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  board  shall be
governed by that chapter of the Health and Safety Code to the extent
of the conflict.
   (e) The  commission   board  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. 152.    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  
department  shall do all of the following:
   (a) Develop a public domain computer program  which
  that  will enable contractors, builders,
architects, engineers, and government officials to estimate the
energy consumed by residential and nonresidential buildings. The
 commission   department  may charge a fee
for the use of the program, which fee shall be based upon the actual
cost of the program, including any computer costs.
   (b) Establish a formal process for certification of compliance
options for new products, materials, and calculation methods which
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 
 department  . The  commission  
department  shall publish annually the results of its
certification decisions and instructions to users and local building
officials concerning requirements for showing compliance with the
building standards for new products, materials, or calculation
methods. The  commission   department  may
charge and collect a reasonable fee from applicants to cover the
costs under this subdivision. Any funds received by the 
commission   department  for purposes of this
subdivision shall be deposited in the Energy Resources Programs
Account and, notwithstanding Section 13340 of the Government Code,
are continuously appropriated to the  commission 
 de   partment  for the purposes of this
subdivision. Any unencumbered portion of funds collected as a fee for
an application remaining in the Energy Resources Programs Account
after completion of the certification process for that application
shall be returned to the applicant within a reasonable period of
time.
   (c) Include a prescriptive method of complying with the standards,
including design aids such as a manual, sample calculations, and
model structural designs.
   (d) Conduct a pilot project of field testing of actual residential
buildings to calibrate and identify potential needed changes in the
modeling assumptions to increase the accuracy of the public domain
computer program specified in subdivision (a) and to evaluate the
impacts of the standards, including, but not limited to, the energy
savings, cost effectiveness, and the effects on indoor air quality.
The pilot project shall be conducted pursuant to a contract entered
into by the  commission   department  . The
 commission   department  shall consult
with the participants designated pursuant to Section 9202 of the
Public Utilities Code to seek funding and support for field
monitoring in each public utility service territory, with the
University of California to take advantage of its extensive building
monitoring expertise, and with the California Building Industry
Association to coordinate the involvement of builders and developers
throughout the state. The pilot project shall include periodic public
workshops to develop plans and review progress. The 
commission   department  shall prepare and submit a
report to the Legislature on progress and initial findings not later
than December 31, 1988, and a final report on the results of the
pilot project on residential buildings not later than June 30, 1990.
The report shall include recommendations regarding the need and
feasibility of conducting further monitoring of actual residential
and nonresidential buildings. The report shall also identify any
revisions to the public domain computer program and energy
conservation standards if the pilot project determines that revisions
are appropriate.
   (e) Certify, not later than 180 days after approval of the
standards by the  State   California 
Building Standards  Commission   department
 , an energy conservation manual for use by designers, builders,
and contractors of residential and nonresidential buildings. The
manual shall be furnished upon request at a price sufficient to cover
the costs of production and shall be distributed at no cost to all
affected local agencies. The manual shall contain, but not be limited
to, the following:
   (1) The standards for energy conservation established by the
 commission   board  .
   (2) Forms, charts, tables, and other data to assist designers and
builders in meeting the standards.
   (3) Design suggestions for meeting or exceeding the standards.
   (4) Any other information  which   that 
the  commission   department  finds will
assist persons in conforming to the standards.
   (5) Instructions for use of the computer program for calculating
energy consumption in residential and nonresidential buildings.
   (6) The prescriptive method for use as an alternative to the
computer program.
   (f) The  commission   department  shall
establish a continuing program of technical assistance to local
building departments in the enforcement of subdivisions (a) and (b)
of Section 25402 and this section. The program shall include the
training of local officials in building technology and enforcement
procedures related to energy conservation, and the development of
complementary training programs conducted by local governments,
educational institutions, and other public or private entities. The
technical assistance program shall include the preparation and
publication of forms and procedures for local building departments in
performing the review of building plans and specifications. The
 commission   d   epartment  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 
 board  adopted pursuant thereto, shall be enforced by the
building department of every city, county, or city and county.
   (1) No building permit for any residential or nonresidential
building shall be issued by a local building department, unless a
review by the building department of the plans for the proposed
residential or nonresidential building contains detailed energy
system specifications and confirms that the building satisfies the
minimum standards established pursuant to subdivision (a) or (b) of
Section 25402 and this section applicable to the building.
   (2) Where there is no local building department, the 
commission   department  shall enforce subdivisions
(a) and (b) of Section 25402 and this section.
   (3) If a local building department fails to enforce subdivisions
(a) and (b) of Section 25402 and this section or any other provision
of this chapter or standard adopted pursuant thereto, the 
commission   department  may provide enforcement
after furnishing 10 days' written notice to the local building
department.
   (4) A city, county, or city and county may, by ordinance or
resolution, prescribe a schedule of fees sufficient to pay the costs
incurred in the enforcement of subdivisions (a) and (b) of Section
25402 and this section. The  commission  
department  may establish a schedule of fees sufficient to pay
the costs incurred by that enforcement.
   (5) No construction   Construction  of
 any   a  state building shall  not
 commence until the Department of General Services or the state
agency that otherwise has jurisdiction over the property reviews the
plans for the proposed building and certifies that the plans satisfy
the minimum standards established pursuant to  subdivision
(a) or (b) of  Chapter 2.8 (commencing with Section
15814.30) of Part 10b of Division 3 of Title 2 of the Government
Code, Section 25402, and this section which are applicable to the
building.
   (h) Subdivisions (a) and (b) of Section 25402 and this section
shall apply only to new residential and nonresidential buildings on
which actual site preparation and construction have not commenced
prior to the effective date of rules and regulations adopted pursuant
to those sections that are applicable to those buildings. Nothing in
those sections shall prohibit either of the following:
   (1) The enforcement of state or local energy conservation or
energy insulation standards, adopted prior to the effective date of
rules and regulations adopted pursuant to subdivisions (a) and (b) of
Section 25402 and this section with regard to residential and
nonresidential buildings on which actual site preparation and
construction have commenced prior to that date.
   (2) The enforcement of city or county energy conservation or
energy insulation standards, whenever adopted, with regard to
residential and nonresidential buildings on which actual site
preparation and construction have not commenced prior to the
effective date of rules and regulations adopted pursuant to
subdivisions (a) and (b) of Section 25402 and this section, if the
city or county files the basis of its determination that the
standards are cost effective with the  commission 
 department  and the  commission  
department  finds that the standards will require the diminution
of energy consumption levels permitted by the rules and regulations
adopted pursuant to those sections. If, after two or more years after
the filing with the  commission   department
 of the determination that those standards are cost effective,
there has been a substantial change in the factual circumstances
affecting the determination, upon application by any interested
party, the city or county shall update and file a new basis of its
determination that the standards are cost effective. The
determination that the standards are cost effective shall be adopted
by the governing body of the city or county at a public meeting. If,
at the meeting on the matter, the governing body determines that the
standards are no longer cost effective, the standards shall, as of
that date, be unenforceable and no building permit or other
entitlement shall be denied based on the noncompliance with the
standards.
   (i) The  commission   department  may
exempt from the requirements of this section and of any regulations
adopted pursuant thereto any proposed building for which compliance
would be impossible without substantial delays and increases in cost
of construction, if the  commission   department
 finds that substantial funds have been expended in good faith
on planning, designing, architecture  ,  or engineering
prior to the date of adoption of the regulations.
   (j) If a dispute arises between an applicant for a building
permit, or the state pursuant to paragraph (5) of subdivision (g),
and the building department regarding interpretation of Section 25402
or the regulations adopted pursuant thereto, either party may submit
the dispute to the  commission   board 
for resolution. The  commission's   board'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. 153.    Section 25402.2 of the Public Resources Code
is amended to read: 
   25402.2.  Any standard adopted by the  commission
  board  pursuant to Sections 25402 and 25402.1,
which is a building standard as defined in Section 25488.5, shall be
submitted to the State Building Standards Commission for approval
pursuant to, and is governed by, the State Building Standards Law
(Part 2.5 (commencing with Section 18901) of Division 13 of the
Health and Safety Code). Building standards adopted by the 
commission   board  and published in the State
Building Standards Code shall be enforced as provided in Sections
25402 and 25402.1. 
  SEC. 154.    Section 25402.3 of the Public Resources Code
is amended to read: 
   25402.3.  For purposes of subdivision (e) of Section 25402.1, the
 commission   department  shall contract
with California building officials to establish two regional training
centers to provide continuing education for local building officials
and enforcement personnel as follows:
   (a) One site shall be located in northern California and one site
shall be located in southern California to serve the needs of the
respective regions.
   (b) The centers shall provide training on a monthly basis to
ensure a uniform understanding and implementation of the energy
efficient building standards. Existing resources shall be used as
much as possible by utilizing members of the building official
community in training activities.
   (c) The centers shall provide similar training sessions, in the
form of workshops given in designated rural areas, to ensure that
adequate training is available throughout the state.  The
workshops shall meet all of 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. 155.    Section 25402.4 of the Public Resources Code
is amended to read: 
   25402.4.  The standards for nonresidential buildings prescribed by
the  commission   board  pursuant to
subdivisions (a) and (b) of Section 25402 shall provide at least one
option which uses passive or semipassive thermal systems, as defined
in Section 25600, for meeting the prescribed energy use requirements.
These systems may include, but are not limited to, the following
construction techniques:
   (a) Use of skylights or other daylighting techniques.
   (b) Use of openable windows or other means of using outside air
for space conditioning.
   (c) Use of building orientation, to complement other passive or
semipassive thermal systems.
   (d) Use of thermal mass, of structural or nonstructural type, for
storage of heat or cold, including, but not limited to, roof ponds
and water walls. 
  SEC. 156.    Section 25402.5 of the Public Resources Code
is amended to read: 
   25402.5.  (a) As used in this section, "lighting device" includes,
but is not limited to, a lamp, luminaire, light fixture, lighting
control, ballast, or any component of those devices.
   (b) (1) The  commission   board  shall
consider both new and replacement, and both interior and exterior,
lighting devices as lighting which is subject to subdivision (a) of
Section 25402.
   (2) The  commission   board  shall
include both indoor and outdoor lighting devices as appliances to be
considered in prescribing standards pursuant to paragraph (1) of
subdivision (c) of Section 25402.
   (3) The Legislature hereby finds and declares that paragraphs (1)
and (2) are declarative of existing law.
   (c) The  commission   board  shall adopt
efficiency standards for outdoor lighting. The standards shall be
technologically feasible and cost-effective. As used in this
subdivision, "outdoor lighting" refers to all electrical lighting
that is not subject to standards adopted pursuant to Section 25402,
and includes, but is not limited to, street lights, traffic lights,
parking lot lighting, and billboard lighting. The  commission
  department and the board  shall consult with the
Department of Transportation (CALTRANS) to ensure that outdoor
lighting standards that affect CALTRANS are compatible with that
department's policies and standards for safety and illumination
levels on state highways. 
  SEC. 157.    Section 25402.5.4 of the Public Resources
Code is amended to read: 
   25402.5.4.  (a) On or before December 31, 2008, the 
commission   board  shall adopt minimum energy
efficiency standards for all general purpose lights on a schedule
specified in the regulations. The regulations, in combination with
other programs and activities affecting lighting use in the state,
shall be structured to reduce average statewide electrical energy
consumption by not less than 50 percent from the 2007 levels for
indoor residential lighting and by not less than 25 percent from the
2007 levels for indoor commercial and outdoor lighting, by 2018.
   (b) The  commission   board shall make
recommendations to the Governor and the Legislature regarding how to
continue reductions in electrical consumption for lighting beyond
2018.
   (c) The  commission   board  may
establish programs to encourage the sale in this state of general
purpose lights that meet or exceed the standards set forth in
subdivision (a).
   (d) (1) Except as provided in paragraph (2), the Department of
General Services, and all other state agencies, as defined in Section
12200 of the Public Contract Code, in coordination with the 
commission   department  , shall cease purchasing
general purpose lights that do not meet the standards adopted
pursuant to subdivision (a), within two years of those standards
being adopted.
   (2) The Department of General Services, and all other state
agencies, as defined in Section 12200 of the Public Contract Code, in
coordination with the  commission   department
 shall cease purchasing general purpose lights with an
appearance that is historically appropriate for the facilities in
which the lights are being used, and that do not meet the standards
adopted pursuant to subdivision (a) within four years of those
standards being adopted.
   (e) It is the intent of the Legislature to encourage the Regents
of the University of California, in coordination with the 
commission   department  , to cease purchasing
general purpose lights that do not meet the standards adopted
pursuant to subdivision (a), within two years of those standards
being adopted.
   (f) (1) (A) For purposes of this section, "general purpose lights"
means lamps, bulbs, tubes, or other electric devices that provide
functional illumination for indoor residential, indoor commercial,
and outdoor use.
   (B) General purpose lights do not include any of the following
types of specialty lighting: appliance, black light, bug, colored,
infrared, left-hand thread, marine, marine signal service, mine
service, plant light, reflector, rough service, shatter resistant,
sign service, silver bowl, showcase, three-way, traffic signal, and
vibration service or vibration resistant.
   (2) The  commission   board  may, after
one or more public workshops, with public notice and an opportunity
for all interested parties to comment, provide for inclusion of a
particular type of specialty light in its energy efficiency standards
applicable to general purpose lighting, if it finds that there has
been a significant increase in sales of that particular type of
particular specialty light due to the use of that specialty light in
general purpose lighting applications.
   (3) General purpose lights do not include lights needed to provide
special-needs lighting for individuals with exceptional needs. 
  SEC. 158.    Section 25402.6 of the Public Resources Code
is amended to read: 
   25402.6.  The  commission   department 
shall investigate options and develop a plan to decrease wasteful
peakload energy consumption in existing residential and
nonresidential buildings. On or before January 1, 2004, the 
commission   department 
                 shall report its findings to the Legislature,
including, but not limited to, any changes in law necessary to
implement the plan to decrease wasteful peakload energy consumption
in existing residential and nonresidential buildings. 
  SEC. 159.    Section 25402.7 of the Public Resources Code
is amended to read: 
   25402.7.  (a) In consultation with the  commission
  department  , electric and gas utilities shall
provide support for building standards and other regulations pursuant
to Section 25402 and subdivision (b) of Section 25553 including
appropriate research, development, and training to implement those
standards and other regulations.
   (b) The electric and gas utilities shall provide support pursuant
to subdivision (a) only to the extent that funds are made available
to the utilities for that purpose. 
  SEC. 160.    Section 25402.8 of the Public Resources Code
is amended to read: 
   25402.8.  When assessing new building standards for residential
and nonresidential buildings relating to the conservation of energy,
the  commission   board  shall include in
its deliberations the impact that those standards would have on
indoor air pollution problems. 
  SEC. 161.    Section 25402.9 of the Public Resources Code
is amended to read: 
   25402.9.  (a) On or before July 1, 1996, the  commission
  department  shall develop,  adopt,
 and  by action of the board,  publish an
informational booklet to educate and inform homeowners, rental
property owners, renters, sellers, brokers, and the general public
about the statewide home energy rating program adopted pursuant to
Section 25942.
   (b) In the development of the booklet, the  commission
  department  shall consult with representatives of
the Department of Real Estate, the Department of Housing and
Community Development, the Public Utilities Commission,
investor-owned and municipal utilities, cities and counties, real
estate licensees, home builders, mortgage lenders, home appraisers
and inspectors, home energy rating organizations, contractors who
provide home energy services, consumer groups, and environmental
groups.
   (c) The  commission   department  shall
charge a fee for the informational booklet to recover its costs under
subdivision (a). 
  SEC. 162.    Section 25403 of the Public Resources Code is
amended to read: 
   25403.  The  commission   department 
shall submit to the Public Utilities Commission and to any publicly
owned electric utility, recommendations designed to reduce wasteful,
unnecessary, or uneconomic energy consumption resulting from
practices  ,  including, but not limited to, differential
rate structures, cost-of-service allocations, the disallowance of a
business expense of advertising or promotional activities 
which   that  encourage the use of electrical
power, peakload pricing, and other pricing measures. The Public
Utilities Commission or publicly owned electric utility shall review
and consider  such   the  recommendations
and shall, within six months after the date it receives them, as
prescribed by this section, report to the Governor and the
Legislature its actions and reasons therefor with respect to 
such   the  recommendations. 
  SEC. 163.    Section 25403.5 of the Public Resources Code
is amended to read: 
   25403.5.  (a) The  commission   board 
shall, by July 1, 1978, adopt standards by regulation for a program
of electrical load management for each utility service area. In
adopting the standards, the  commission   board
 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) The standards shall be cost-effective when compared with the
costs for new electrical capacity, and the  commission
  board  shall find them to be technologically
feasible. Any expense or any capital investment required of a utility
by the standards shall be an allowable expense or an allowable item
in the utility rate base and shall be treated by the Public Utilities
Commission as allowable in a rate proceeding.
   The  commission  board  may determine
that one or more of the load management techniques are infeasible and
may delay their adoption. If the  commission  
board  determines that any techniques are infeasible to
implement, it shall make a finding in each instance stating the
grounds upon which the determination was made and the actions it
intends to take to remove the impediments to implementation.
   (c) The  commission   board  may also
grant, upon application by a utility, an exemption from the standards
or a delay in implementation. The grant of an exemption or delay
shall be accompanied by a statement of findings by the 
commission   board  indicating the grounds for the
exemption or delay. Exemption or delay shall be granted only upon a
showing of extreme hardship, technological infeasibility, lack of
cost-effectiveness, or reduced system reliability and efficiency.
   (d) This section does not apply to proposed sites and related
facilities for which a notice of intent or an application requesting
certification has been filed with the  commission 
 board  prior to the effective date of the standards. 
  SEC. 164.    Section 25403.8 of the Public Resources Code
is amended to read: 
   25403.8.  (a) The  commission   departme
  nt  shall develop and implement a program to provide
battery backup power for those official traffic control signals,
operated by a city, county, or city and county, that the 
commission   department  , in consultation with
cities, counties, or cities and counties, determines to be high
priority traffic control signals.
   (b) Based on traffic factors considered by cities, counties, or
cities and counties, including, but not limited to, traffic volume,
number of accidents, and presence of children, the 
commission   department  shall determine a priority
schedule for the installation of battery backup power for traffic
control systems. The  commission   department
 shall give priority to a city, county, or city and county that
did not receive a grant from the State of California for the
installation of light-emitting diode traffic control signals.
   (c) The  commission   department  shall
also develop or adopt the necessary technical criteria as to wiring,
circuitry, and recharging units for traffic control signals. Only
light-emitting diodes (LED) traffic control signals are eligible for
battery backup power for the full operation of the traffic control
signal or a flashing red mode. A city, county, or city and county may
apply for a matching grant for battery backup power for traffic
control signals retrofitted with light-emitting diodes.
   (d) Based on the criteria described in subdivision (c), the
 commission   board  shall provide matching
grants to cities, counties, and cities and counties for backup
battery systems described in this section in accordance with the
priority schedule established by the  commission 
 department  pursuant to subdivision (b). The 
commission   board  shall provide 70 percent of the
funds for a battery backup system, and the city, county, or city and
county shall provide 30 percent.
   (e) If a city, county, or city and county has installed a backup
battery system for LED traffic control signals between January 1,
2001, and  the effective date of the act adding this section
  October 1, 2001  , the  commission
  board  may reimburse the city, county, or city
and county for up to 30 percent of the cost incurred for the backup
battery system installation. However, the  commission
  board  may not spend more than one million five
hundred thousand dollars ($1,500,000) for reimbursements pursuant to
this subdivision. 
  SEC. 165.    Section 25404 of the Public Resources Code is
amended to read: 
   25404.  The  commission   department 
shall cooperate with  the Office of Planning and Research,
 the  Natural  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. 166.    Section 25405.5 of the Public Resources Code
is amended to read: 
   25405.5.  (a) As used in this section, the following terms have
the following meanings:
   (1) "kW" means kilowatts or 1,000 watts, as measured from the
alternating current side of the solar energy system inverter
consistent with Section 223 of Title 15 of the United States Code.
   (2) "Production home" means a single-family residence constructed
as part of a development of at least 50 homes per project that is
intended or offered for sale.
   (3) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kW, and not more than five megawatts, alternating current
rated peak electricity, and that meets or exceeds the eligibility
criteria established pursuant to Section 25782.
   (b) A seller of production homes shall offer a solar energy system
option to all customers that enter into negotiations to purchase a
new production home constructed on land for which an application for
a tentative subdivision map has been deemed complete on or after
January 1, 2011, and disclose the following:
   (1) The total installed cost of the solar energy system option.
   (2) The estimated cost savings associated with the solar energy
system option, as determined by the  commission 
 board  pursuant to Chapter 8.8 (commencing with Section
25780) of Division 15.
   (c) The  State Energy Resources Conservation and
Development Commission   Department of Energy 
shall develop an offset program that allows a developer or seller of
production homes to forgo the offer requirement of this section on a
project, by installing solar energy systems generating specified
amounts of electricity on other projects, including, but not limited
to, low-income housing, multifamily, commercial, industrial, and
institutional developments. The amount of electricity required to be
generated from solar energy systems used as an offset pursuant to
this subdivision shall be equal to the amount of electricity
generated by solar energy systems installed on a similarly sized
project within that climate zone, assuming 20 percent of the
prospective buyers would have installed solar energy systems.
   (d) The requirements of this section shall not operate as a
substitute for the implementation of existing energy efficiency
measures, and the requirements of this section shall not result in
lower energy savings or lower energy efficiency levels than would
otherwise be achieved by the full implementation of energy savings
and energy efficiency standards established pursuant to Section
25402. 
  SEC. 167.    Section 25405.6 of the Public Resources Code
is amended to read: 
   25405.6.  Not later than July 1, 2007, the  commission
  department and the board  shall initiate a public
proceeding to study and make findings whether, and under what
conditions, solar energy systems should be required on new
residential and new nonresidential buildings, including the
establishment of numerical targets. As part of the study, the
 commission   board  may determine that a
solar energy system should not be required for any building unless
the  commission   board  determines, based
upon consideration of all costs associated with the system, that the
system is cost effective when amortized over the economic life of the
structure. When determining the cost-effectiveness of the solar
energy system, the  commission   board 
shall consider the availability of governmental rebates, tax
deductions, net-metering, and other quantifiable factors, if the
 commission   board  can determine the
availability of these financial incentives if a solar energy system
is made mandatory and not elective. The  commission 
 department  shall periodically update the study and
incorporate any revision that the  commission  
department and the board  determines is necessary, including
revisions that reflect changes in the financial incentives originally
considered by the  commission   board 
when determining cost-effectiveness of the solar energy system. For
purposes of this section, "solar energy system" means a photovoltaic
solar collector or other photovoltaic solar energy device that has a
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity. This section is
intended to be for study purposes only and does not authorize the
 commission   board  to develop and adopt
any requirement for solar energy systems on either residential or
nonresidential buildings. 
  SEC. 168.    Section 25410.5 of the Public Resources Code
is amended to read: 
   25410.5.  The Legislature finds and declares all of the following:

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

   (c) Many local governments lack energy management expertise and
are often unaware of their high energy costs or the opportunities to
reduce those costs.
   (d) Local governments that desire to reduce their energy costs
through energy conservation and efficiency measures often lack
available funding.
   (e) Since 1980, the Energy Conservation Assistance Account has
provided $110 million in loans, through a revolving loan account, to
600 schools, hospitals, and local governments. The energy
conservation projects funded by the account save approximately $35
million annually in energy costs.
   (f) Local governments and public institutions need assistance in
all aspects of energy efficiency improvements, including, but not
limited to, project identification, project development and
implementation, evaluation of project proposals and options,
operations and maintenance, and troubleshooting of problem projects.

  SEC. 169.    Section 25410.6 of the Public Resources Code
is amended to read: 
   25410.6.  (a) It is the intent of the Legislature that the
 commission   department  shall administer
the State Energy Conservation Assistance Account to provide grants
and loans to local governments and public institutions to maximize
energy use savings, including, but not limited to, technical
assistance, demonstrations, and identification and implementation of
cost-effective energy efficiency measures and programs in existing
and planned buildings or facilities.
   (b) It is further the intent of the Legislature that the 
commission   department  seek the assistance of
utility companies in providing energy audits for local governments
and public institutions and in publicizing the availability of State
Energy Conservation Assistance Account funds to qualified entities.

  SEC. 170.    Section 25412 of the Public Resources Code is
amended to read: 
   25412.  Any eligible institution may submit an application to the
 commission   department  for an allocation
for the purpose of financing all or a portion of the costs incurred
in implementing a project. The application shall be in  such
  the  form and contain  such 
 the  information  as the commission  
incurred in implementing a project that the department  shall
prescribe.
   An application may be for the purpose of financing the eligible
institution's share of  such   the  costs
 which   that  are to be jointly funded
through a state, local, or federal-local program. 
  SEC. 171.    Section 25413 of the Public Resources Code is
amended to read: 
   25413.  Applications may be approved by the  commission
  department  only in those instances where the
eligible institution has furnished information satisfactory to the
 commission   department  that the costs of
the project, plus interest on state funds loaned, calculated in
accordance with Section 25415, will be recovered through savings in
the cost of energy to the institution during the repayment period of
the allocation.
   The savings shall be calculated in a manner prescribed by the
 commission   department  . 
  SEC. 172.    Section 25414 of the Public Resources Code is
amended to read: 
   25414.  Annually at the conclusion of each fiscal year, but not
later than October 31, each eligible institution that has received an
allocation pursuant to this chapter shall compute the cost of energy
saved as a result of implementing a project funded by the
allocation. The cost shall be calculated in a manner prescribed by
the  commission   department  . 
  SEC. 173.    Section 25415 of the Public Resources Code is
amended to read: 
   25415.  (a) Each eligible institution to which an allocation has
been made under this chapter shall repay the principal amount of the
allocation, plus interest, in not more than 30 equal semiannual
payments, as determined by the  commission  
department  . The first semiannual payment shall be made on or
before December 22 of the fiscal year following the year in which the
project is completed. The repayment period may not exceed the life
of the equipment, as determined by the  commission 
 department  or the lease term of the building in which the
energy conservation measures will be installed.
   (b) Notwithstanding any other provision of law, the 
commission   department  shall, unless it
determines that the purposes of this chapter would be better served
by establishing an alternative interest rate schedule, periodically
set interest rates on the loans based on surveys of existing
financial markets and at rates not less than 1 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. 174.    Section 25416 of the Public Resources Code is
amended to read: 
   25416.  (a) The State Energy Conservation Assistance Account is
hereby created in the General Fund. Notwithstanding Section 13340 of
the Government Code, the account is continuously appropriated to the
 commission   department  without regard to
fiscal year.
   (b) The money in the account shall consist of all money authorized
or required to be deposited in the account by the Legislature and
all money received by the  commission  
department  pursuant to Sections 25414 and 25415.
   (c) The money in the account shall be disbursed by the Controller
for the purposes of this chapter as authorized by the 
commission   department  .
   (d) The  commission   department  may
contract and provide grants for services to be performed for eligible
institutions. Services may include, but are not limited to,
feasibility analysis, project design, field assistance, and operation
and training. The amount expended for those services may not exceed
10 percent of the unencumbered balance of the account as determined
by the  commission   department  on July 1
of each year.
   (e) The  commission   department  may
make grants to eligible institutions for innovative projects and
programs. Except as provided in subdivision (d), the amount expended
for grants may not exceed 5 percent of the annual unencumbered
balance in the account as determined by the  commission
  department  on July 1 of each fiscal year.
   (f) The  commission   department  may
charge a fee for the services provided under subdivision (d).
   (g) Notwithstanding any other provision of law, the Controller may
use the State Energy Conservation Assistance Account for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code. 
  SEC. 175.    Section 25417 of the Public Resources Code is
amended to read: 
   25417.  (a) An allocation made pursuant to this chapter shall be
used for the purposes specified in an approved application.
   (b) In the event that the  commission   dep
  artment  determines that an allocation has been
expended for purposes other than those specified in an approved
application, it shall immediately request the return of the full
amount of the allocation. The eligible institution shall immediately
comply with  such  this  request. 
  SEC. 176.    Section 25417.5 of the Public Resources Code
is amended to read: 
   25417.5.  (a) In furtherance of the purposes of the 
commission   department  as set forth in this
chapter, the  commission   department  has
the power and authority to do all of the following:
   (1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority  ,   and  the
California Infrastructure and Economic Development Bank  ,
and the California Consumer Power and Conservation Financing
Authority  from the proceeds of revenue bonds issued by any
of those agencies.
   (2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440).
   (3) Sell loans made pursuant to this chapter or Chapter 5.4
(commencing with Section 25440), at prices determined in the sole
discretion of the  commission   department 
, to the California Economic Development Financing Authority
 ,   and  the California Infrastructure and
Economic Development Bank  , and the California Consumer
Power and Conservation Financing Authority  to raise funds
to enable the  commission   department  to
make loans to eligible institutions.
   (4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the 
California Consumer Power and Conservation Financing Authority
  department  as conditions of issuing bonds to
fund loans to, or the purchase of loans from, the  commission
  department  .
   (b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the  commission   department
 may enter into pledge agreements setting forth the terms and
conditions pursuant to which the  commission  
department  is pledging loans or the principal and interest
payment on loans, and may also agree to have the loans held by bond
trustees or by independent collateral or escrow agents and to direct
that payments received on those loans be paid to those trustee,
collateral, or escrow agents.
   (c) The  commission   department  may
employ financial consultants, legal advisers, accountants, and other
service providers, as may be necessary in its judgment, in connection
with activities pursuant to this chapter.
   (d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.4 (commencing with Section 25440), and
is supplemental and additional to powers conferred by other laws.

  SEC. 177.    Section 25419 of the Public Resources Code is
amended to read: 
   25419.  In addition to the powers specifically granted to the
 commission   department  by the other
provisions of this chapter, the  commission  
department  shall have the following powers:
   (a) To establish qualifications and priorities, consistent with
the objectives of this chapter, for making allocations.
   (b) To establish  such  procedures and policies
as may be necessary for the administration of this chapter. 
  SEC. 178.    Section 25420 of the Public Resources Code is
amended to read: 
   25420.  The  commission   department 
may expend from the State Energy Conservation Assistance Account an
amount to pay for the actual administrative costs incurred by the
 commission   department  pursuant to this
chapter. The amount shall not exceed 5 percent of the annual
unencumbered balance in the account as determined by the 
commission   department  on July 1 of each fiscal
year, to be used to defray costs incurred by the  commission
  department  for allocations made by the 
commission   department  pursuant to this chapter.

  SEC. 179.    Section 25422 of the Public Resources Code is
amended to read: 
   25422.  (a) Federal funds available to the  commission
  department  pursuant to Chapter 5.6 (commencing
with Section 25460) may be used by the  commission 
 department  to augment funding for grants and loans
pursuant to this chapter. Any federal funds used for loans shall,
when repaid, be deposited into the Energy Conservation Assistance
Account and used to make additional loans pursuant to this chapter.
   (b) A separate subaccount shall be established within the Energy
Conservation Assistance Account to track the award and repayment of
loans from federal funds, including any interest earnings, in
accordance with the federal American Recovery and Reinvestment Act of
2009 (Public Law 111-5). 
    SEC. 180.    Section 25426 of the Public Resources Code
is amended to read: 
   25426.  As used in this article, the following terms have the
following meanings:
   (a) "Commercial refrigeration" means a refrigerator that is not a
federally regulated consumer product.
   (b) "Energy-efficient model" means any appliance that meets the
efficiency standards of the United States Department of Energy that
are effective on and after July 1, 2001, and, if applicable, products
certified as energy efficient zone heating products by the 
State Energy Resources Conservation and Development Commission
  board  .
   (c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code. 
  SEC. 181.    Section 25433.5 of the Public Resources Code
is amended to read: 
   25433.5.  (a)  In   The department, in 
consultation with the Public Utilities Commission,  the
commission  shall do both of the following for the purpose
of full or partial funding of an eligible construction or retrofit
project:
   (1) Establish a grant program to provide financial assistance to
eligible low-income individuals.
   (2) Establish a 2-percent interest per annum loan program to
provide financial assistance to a small business owner, residential
property owner, or individual who is not eligible for a grant
pursuant to paragraph (1). The loans shall be available to a small
business owner who has a gross annual income that does not exceed one
hundred thousand dollars ($100,000) or to an individual or
residential property owner who has a gross annual household income
that does not exceed one hundred thousand dollars ($100,000).
   (b) (1) The  commission   department 
shall use the design guidelines adopted pursuant to paragraph (2) of
subdivision (f) of Section 14 of  the act that added this
section   Chapter 8 of the Statutes of the First
Extraordinary Session of 2001  as standards to determine
eligible energy-efficiency projects.
   (2) The award of a grant pursuant to this section is subject to
appeal to the  commission   department 
upon a showing that the  commission   department
 applied factors, other than those adopted by the 
commission   department  , in making the award.
   (3) The grant or loan recipient shall commit to using the grant or
loan for the purpose for which the grant or loan was awarded.
   (4) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including satisfying
conditions specified by the  commission  
department  , does not constitute the rendering of goods,
services, or a direct benefit to the  commission 
 department  .
   (5) The amount of any grant awarded pursuant to this article to a
low-income individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received. 
  SEC. 182.    Section 25434 of the Public Resources Code is
amended to read: 
   25434.   (a)    The  commission
  department  may contract with one or more
business entities capable of supplying or providing goods or services
necessary for the  commission   department
 to carry out the responsibilities for the programs conducted
pursuant to this article, and shall contract with one or more
business entities to evaluate the effectiveness of the programs
implemented pursuant to subdivision (a) of Section 25433.5. The
 commission   department  may select an
entity on a sole source basis for one or both of those purposes if
the cost to the state will be reasonable and the  commission
  department  determines that it is in the best
interest of the state. 
   (b)  The Department of Finance shall conduct an independent audit
of the programs conducted pursuant to this article, and provide an
audit report to the Legislature not later than March 1 of each year
for which an appropriation has been made to fund the programs. The
Department of Finance audit report shall include an evaluation of the
effectiveness of the programs implemented pursuant to subdivision
(a) of Section 25433.5, and 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. 183.    Section 25434.5 of the Public Resources Code
is amended to read: 
   25434.5.  As used in this article, the following terms have the
following meanings:
   (a)  "Eligible construction or retrofit project" means a project
for making improvements to a home or building in existence on
 the effective date of the act adding this section 
 April 12, 2001  , through an addition, alteration, or
repair, which effectively increases the energy efficiency or reduces
the energy consumption of the home or building as specified by the
 commission's   departmental  guidelines
under paragraph (2) of subdivision (f) of Section 14 of  the
act that added this section   Chapter 8 of the Statutes
of the First Extraordinary Session of 2001  . The improvements
shall be deemed to be cost-effective.
   (b)  "Low income" means an individual with a gross annual income
equal to or less than 200 percent of the federal poverty level.
   (c)  "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code. 
  SEC. 184.    Article 3 (commencing with Section 25435) of
Chapter 5.3 of Division 15 of the Public Resources Code is repealed.
 
  SEC. 185.    Section 25441 of the Public Resources Code is
amended to read: 
   25441.  The  commission   department 
shall provide financial assistance to local jurisdictions for the
purpose of providing staff training and support services, including,
but not limited to, planning design, permitting, energy conservation,
comprehensive energy management, project evaluation, and development
of alternative energy resources. 
  SEC. 186.    Section 25442 of the Public Resources Code is
amended to read: 
   25442.  The  commission   department 
shall provide loans to local jurisdictions for all of the following
purposes:
   (a) Purchase, maintenance, and evaluation of energy efficient 
of peak load reduction  equipment for existing  and new
  or planned  facilities, including, but not
limited to, equipment related to lights, motors, pumps, water and
wastewater systems, boilers, heating, and air conditioning.
   (b) Purchase, maintenance, and evaluation of small power
production systems, including, but not limited to, wind,
cogeneration, photovoltaics, geothermal, and hydroelectric systems.
   (c)  Improve   Improvement of  the
operating efficiency of existing local transportation systems. 
  SEC. 187.    Section 25442.5 of the Public Resources Code
is amended to read: 
   25442.5.  The  commission   department 
may award financial assistance for project audits, feasibility
studies, engineering and design, and legal and financial analysis
related to the purposes of Section 25442. 
  SEC. 188.    Section 25442.7 of the Public Resources Code
is amended to read: 
   25442.7.  (a) Loans under this article may not exceed five million
dollars ($5,000,000) for any one local jurisdiction unless the
 commission   department  determines
 , by unanimous vote,  that the public interest and
objectives of this chapter would be better served at a higher loan
amount.
   (b) Loan repayments shall be made in accordance with a schedule
established by the  commission   department
 . Repayment of loans shall be made in full unless the 
commission   department  determines  , by
unanimous vote,  that the public interest and objectives of
this chapter would be better served by negotiating a reduced loan
repayment for a project that fails to meet the technical or financial
performance criteria through no fault of the local jurisdiction.

  SEC. 189.    Section 25443 of the Public Resources Code is
amended to read: 
   25443.  (a) Principal and interest payments on loans under this
article shall be returned to the  commission  
department  and shall be used to make additional loans to local
jurisdictions pursuant to Section 25442 or to provide financial
assistance to local jurisdictions pursuant to Section 25441.
   (b) Notwithstanding any other provision of law, the 
commission   department  shall, unless it
determines that the purposes of this chapter would be better served
by establishing an alternative interest rate schedule, periodically
set interest rates on the loans based on surveys of existing
financial markets and at rates not less than 3 percent per annum.

  SEC. 190.    Section 25443.5 of the Public Resources Code
is amended to read: 
   25443.5.  (a) In furtherance of the purposes of the 
commission   department  as set forth in this
chapter, the  commission   department  has
the power and authority to do all of the following:
   (1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority  ,   and  the
California Infrastructure and Economic Development Bank  ,
and the California Consumer Power and Conservation Financing
Authority  from the proceeds of revenue bonds issued by
 any   either  of those agencies.
   (2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410).
   (3) Sell loans made pursuant to this chapter or Chapter 5.2
(commencing with Section 25410), at prices determined in the sole
discretion of the  commission   department 
, to the California Economic Development Financing Authority
 ,   and  the California Infrastructure and
Economic Development Bank  , and the California Consumer
Power and Conservation Financing Authority  to raise funds
to enable the  commission   department  to
make loans to eligible institutions.
   (4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the 
California Consumer Power and Conservation Financing Authority
 department  as conditions of issuing bonds to fund
loans to, or the purchase of loans from, the  commission
  department  .
   (b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the  commission   department
 may enter into pledge agreements setting forth the terms and
conditions pursuant to which the commission  
department  is pledging loans or the principal and interest
payment on loans, and may also agree to have the loans held by bond
trustees or by independent collateral or escrow agents and to direct
that payments received on those loans be paid to those trustee,
collateral, or escrow agents.
   (c) The commission   department  may
employ financial consultants, legal advisers, accountants, and other
service providers, as may be necessary in its judgment, in connection
with activities pursuant to this chapter.
   (d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.2 (commencing with Section 25410), and
is supplemental and additional to powers conferred by other laws.

  SEC. 191.    Section 25445 of the Public Resources Code is
amended to read: 
   25445.  The  commission   department 
shall design a local jurisdiction energy assistance program for the
purpose of providing financial assistance under Article 2 (commencing
with Section 25441) and providing loans under Article 3 (commencing
with Section 25442). A local jurisdiction's energy assistance program
shall be funded through the  commission's  
department's  existing local government assistance programs,
except that if a project is not eligible for funding under an
existing program, the  commission   department
 may fund the project under this chapter. 
  SEC. 192.    Section 25449 of the Public Resources Code is
amended to read: 
   25449.   (a)    The  commission
  department  shall enter into an agreement with
the Regents of the University of California, the Trustees of the
California State University, and the Board of Governors of the
California Community Colleges for the expenditure of petroleum
violation escrow funds to supplement, and not supplant, other
available funds to improve energy efficiency at state-supported
universities and colleges under their respective jurisdictions by
funding projects involving any of the following: 
   (a) 
    (1)  Data collection. 
   (b) 
    (2)  Establishment of operations and maintenance
standards. 
   (c) 
    (3)  Staff training. 
   (d) 
    (4)  Ongoing energy equipment maintenance. 
   (e) 
    (5)  Projects involving heating, ventilation, air
conditioning, and lighting equipment. 
   (b) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.  
  SEC. 193.    Section 25449.3 of the Public Resources Code
is amended to read: 
   25449.3.  (a) The Local Jurisdiction Energy Assistance Account is
hereby created in the General Fund. All money appropriated for
purposes of this chapter and all money received from local
jurisdictions from loan repayments shall be deposited in the account
and disbursed by the Controller as authorized by the 
commission   department  .
   (b) The  commission   department  may
charge a fee for the services provided under this chapter.
   (c) The  commission   department  may
contract for services to be performed by eligible institutions, as
defined in subdivision (c) of Section 25411. Those services may
include, but are not limited to, performance of a feasibility
analysis, and providing project design, field evaluation, and
operation and training assistance. The amount expended for contract
services may not exceed 10 percent of the annual scheduled loan
repayment to the Local Jurisdiction Energy Assistance Account, as
determined by the  commission   department 
not later than July 1 of each fiscal year. 
  SEC. 194.    Section 25450 of the Public Resources Code is
amended to read: 
   25450.  (a) The Legislature finds and declares all of the
following:
   (1) The cost of energy in California is increasing and creating
greater demands on local governments' operating budgets.
   (2) The 110th Congress enacted the Energy Independence and
Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) that provides
energy efficiency and conservation block grants to eligible entities,
including states, to reduce fossil fuel emissions, improve energy
efficiency, and reduce overall energy use.
   (3) Section 545(c)(1)(A) of the Energy Independence and Security
Act of 2007 (42 U.S.C. Sec. 17155(c)(1)(A)) mandates that states
receiving block grants under the act use not less than 60 percent of
the grant amount to provide subgrants to local governments that are
not eligible entities for the purposes of the act.
   (4) The 111th Congress enacted the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) that appropriates funds
for energy efficiency and conservation, water conservation, home
weatherization, green workforce development, and renewable energy.
   (b) It is the intent of the Legislature to fully implement the
requirements for, and achieve the purposes of, the energy and
conservation block grants provided pursuant to the Energy
Independence and Security Act of 2007 and the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), in the most expedient
manner possible, and that the funds allocated to the state pursuant
to those acts be administered by the  commission 
 department  . Moreover, to the extent possible without
causing undue delay, the  commission  
department  shall look to the Energy Independence and Security
Act of 2007 and the American Recovery and Reinvestment Act of 2009
programs and make policy decisions that leverage and maximize the use
of these dollars, including, but not limited to, the areas of energy
efficiency, renewable energy, water efficiency, weatherization, and
green workforce development.
   (c) It is the intent of the Legislature to strive to maximize the
opportunity to allocate funds toward the most cost-effective energy
efficiency projects, and when allocating funds toward administration,
the  commission   department  should use
the allowable administrative expenses specified in Section 545(c)(4)
of the Energy Independence and Security Act of 2007 (42 U.S.C. Sec.
17155(c)(4)) as a ceiling and improve efficiencies to allocate less
than the allowable amount. 
  SEC. 195.    Section 25450.1 of the Public Resources Code
is amended to read: 
   25450.1.  The  commission   department, by
action of the board,  shall administer the funds allocated to
and received by the state pursuant to the Energy Independence and
Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) and the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) for the
Energy Efficiency and Conservation Block Grant Program established
pursuant to Section 542 of the Energy Independence and Security Act
of 2007 (42 U.S.C. Sec. 17152), and may use the federal funds to
award contracts, grants, and loans as expeditiously as possible
consistent with those acts. 
  SEC. 196.    Section 25450.3 of the Public Resources Code
is amended to read: 
   25450.3.  The  commission   department 
shall not exceed the amount specified in Section 545(c)(4) of the
Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17155(c)
(4)) for administrative expenses, which include, but are not limited
to, reporting, recordkeeping, and evaluation activities required by
the Energy Independence and Security Act of 2007 (42 U.S.C. Section
17001 et seq.), the American Recovery and Reinvestment Act of 2009
(Public Law 111-5), and implementing regulations and guidelines, that
govern or fund the Energy Efficiency and Conservation Block Grant
Program, and the combined administration program costs, indirect
costs, overhead, and costs associated with the Statewide Cost
Allocation Plan. 
  SEC. 197.    Section 25450.4 of the Public Resources Code
is amended to read: 
   25450.4.  The  commission   department, by
action of the board,  may award contracts, grants, and loans
pursuant to this chapter, unless otherwise prohibited by the Energy
Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.),
the American Recovery and Reinvestment Act of 2009 (Public Law
111-5), implementing regulations and guidelines. 
  SEC. 198.    Section 25450.5 of the Public Resources Code
is amended to read: 
   25450.5.  (a) The  commission   department,
by action of the board,  may adopt guidelines governing the
award, eligibility, and administration of funding pursuant to the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5) at
a publicly noticed meeting offering all interested parties an
opportunity to comment. The  commission   board
 shall provide written public notice of not less than 30 days
for the initial adoption of guidelines. Substantive changes to the
guidelines shall not be adopted without 15-day written notice to the
public. Notwithstanding any other provision of law, any guidelines
adopted pursuant to this chapter shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
   (b) Grants and loans made pursuant to this chapter are subject to
appeal to the  commission   board  upon a
showing that factors other than those described in the guidelines
adopted by the  commission   board  were
applied in making the awards and payments. 
  SEC. 199.    Section 25460 of the Public Resources Code is
amended to read: 
   25460.  (a) The Legislature finds and declares that the 111th
Congress enacted the American Recovery and Reinvestment Act of 2009
(Public Law 111-5) that appropriates funds for various energy
programs administered by the  commission  
department  .
   (b) It is the intent of the Legislature that the 
commission   department, by action of the board, 
should have the authority to award contracts, grants, and loans from
funds received pursuant to the American Recovery and Reinvestment Act
of 2009 and to make the awards as expeditiously as possible. 
  SEC. 200.    Section 25461 of the Public Resources Code is
amended to read: 
   25461.  (a) Except as provided in Chapter 5.5 (commencing with
Section 25450), the  commission   department
 shall administer federal funds allocated to, and received by,
the state for energy-related projects pursuant to the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) or federal
acts related to the American Recovery and Reinvestment Act of 2009.
   (b) Unless otherwise prohibited by the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) or subsequent federal
acts related to the American Recovery and Reinvestment Act of 2009,
the  commission   department, by action of the
board,  may use the federal funds to award contracts, grants,
and loans for energy efficiency, energy conservation, renewable
energy, and other energy-related projects and activities authorized
by the American Recovery and Reinvestment Act of 2009 or subsequent
federal acts related to the American Recovery and Reinvestment Act of
2009. 
  SEC. 201.    Section 25462 of the Public Resources Code is
amended to read: 
   25462.  (a) The  commission   department, by
action of the board,  may adopt guidelines governing the award,
eligibility, and administration of funding pursuant to this chapter
at a publicly noticed meeting offering all interested parties an
opportunity to comment. The  commission   board
 shall provide written public notice of not less than 30 days
for the initial adoption of guidelines. Substantive changes to the
guidelines shall not be adopted without 15-day written notice to the
public. Notwithstanding any other provision of law, any guidelines
adopted pursuant to this chapter shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
   (b) Grants and loans made pursuant to this chapter are subject to
appeal to the  commission   board  upon a
showing that factors other than those described in the guidelines
adopted by the  commission   board  were
applied in making the awards and payments. 
  SEC. 202.    Section 25463 of the Public Resources Code is
amended to read: 
   25463.  (a) Notwithstanding any other provision of this division,
federal funds available to the  commission  
department  pursuant to this chapter may be used by the 
commission   department, by action of the board, 
to augment funding for any programs or measures authorized by this
division unless otherwise prohibited by the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5). The  commission
  department  may administer any funds used to
augment other programs using the procedures of the augmented program
consistent with applicable federal law.
   (b) This section shall be liberally construed to maximize the
 commission's   department's and the board's
 ability to utilize and award federal funds expeditiously and in
accordance with the American Recovery and Reinvestment Act of 2009
or federal acts related to the American Recovery and Reinvestment Act
of 2009. 
  SEC. 203.    Section 25470 of the Public Resources Code is
amended to read: 
   25470.  As used in this chapter:
   (a) "Act" means the federal American Recovery and Reinvestment Act
of 2009 (Public Law 111-5).
   (b) "Allocation" means a loan of funds by the Department of
General Services pursuant to the procedures specified in this
chapter.
   (c) "Building" means any existing structure that includes a
heating or cooling system, or both. Additions to an existing building
shall be considered part of that building rather than a separate
building. 
   (d) "Department" means the Department of General Services.
 
   (e) 
    (d)    "Energy audit" means a determination of
the energy consumption characteristics of a building that does all of
the following:
   (1) Identifies the type, size, and energy use level of the
building and the major energy using systems of the building.
   (2) Determines appropriate energy conservation maintenance and
operating procedures.
   (3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures. 
   (f) 
    (e)    "Energy conservation maintenance and
operating procedure" means a modification or modifications in the
maintenance and operations of a building, and any installations
therein, based on the use time schedule of the building that are
designed to reduce energy consumption in the building and that
require no significant expenditure of funds. 
   (g) 
    (f)    "Energy conservation measure" means an
installation or modification of an installation in a building that is
primarily intended to reduce energy consumption or allow the use of
a more cost-effective energy source. 
   (h) 
    (g)   "Energy conservation project" means an
undertaking to acquire and to install one or more energy conservation
measures in a building, and technical assistance in connection with
that undertaking. 
   (i) 
    (h)    "Fund" means the Energy Efficient State
Property Revolving Fund. 
                                   (j) 
    (i)    "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
buildings, and energy conservation projects. 
   (k) 
    (j)   "State agency" means a unit of state
government, including any department, agency, board, or commission
under the State of California. 
   (l) 
    (k)    "State-owned building" means a building
that is primarily occupied by offices or agencies of a unit of state
government and includes those properties owned by the State of
California. 
  SEC. 204.    Section 25471 of the Public Resources Code is
amended to read: 
   25471.  (a) There is hereby created in the State Treasury the
Energy Efficient State Property Revolving Fund for the purpose of
implementing this chapter. Notwithstanding Section 13340 of the
Government Code, the money in this fund is continuously appropriated
to the  department  Department of General
Services  , without regard to fiscal years, for loans for
projects on state-owned buildings and facilities to achieve greater,
long-term energy efficiency, energy conservation, and energy cost and
use avoidance.
   (b) The fund shall be administered by the  department
  Department of General Services  . The 
department   Department of General Services  may
use other funding sources to leverage project loans.
   (c) For the 2009-10 fiscal year, the sum of twenty-five million
dollars ($25,000,000) shall be transferred into the Energy Efficient
State Property Revolving Fund from money received by the 
commission   department  pursuant to the act to be
used for purposes of the federal State Energy Program.
   (d) The Controller shall disburse moneys in the fund for the
purposes of this chapter, as authorized by the  department
  Department of General Services  .
   (e) Moneys in the fund, including all interest earnings, shall be
clearly delineated and distinctly accounted for in accordance with
the requirements of the act. 
  SEC. 205.    Section 25472 of the Public Resources Code is
amended to read: 
   25472.  (a) The  department   Department of
General Services  , in consultation with the  commission
  department  , shall establish a process by which
projects are identified and funding is allocated.
   (b) Beginning July 1, 2009, the  department  
Department of General Services  shall use money in the fund for
projects that will improve long-term energy efficiency and increase
energy use savings.
   (c) The  department   Department of General
Services  shall comply with the requirements of the act and
implementing guidelines of the  commission  
department  , including, but not limited to, performance
metrics, data collection, and reporting. All projects must be
consistent with these requirements and guidelines.
   (d) Funding prioritization shall be granted to those projects that
are cost-effective and will yield immediate and sustainable energy
efficiency, energy conservation, energy use cost savings, and cost
avoidance.
   (e) The  department   Department of General
Services  shall fund allowable projects through a loan to the
appropriate state agency or agencies occupying the building or
facility for which the project will be performed.
   (f) The  department   Department of General
Services  shall determine a reasonable loan repayment schedule
that may not exceed the life of the energy conservation measure
equipment, as determined by the  department  
Department of General Services  , or the lease term of the
building in which the energy conservation measure is installed.
   (g) Maximum loan amounts shall be based on estimated energy cost
savings that will allow state agencies to repay loan principal and
interest within the maximum repayment term specified in this section.

   (h) The  department   Department of General
Services  shall periodically set interest rates on the loans
based on surveys of existing financial markets and at rates of not
less than 1 percent per annum.
   (i) Annual loan repayment amounts shall be structured so as to
reflect the projected annualized energy cost avoidance estimated from
the completed project. The  department  
Department of General Services  may utilize a direct billing
methodology to recover loan repayments for completed projects. 
  SEC. 206.    Section 25473 of the Public Resources Code is
amended to read: 
   25473.  (a) On or before January 1, 2010, and annually thereafter,
the  department   Department of General
Services  , in collaboration with the  commission
  department  , shall submit to the Legislature's
fiscal and appropriate policy committees a report that includes an
initial list of projects identified and planned for the 2009-10
fiscal year, and for each fiscal year thereafter. The report also
shall include the anticipated cost of each project, an analysis of
the results of the methodology, and an estimate of energy savings to
be achieved.
   (b) On or before July 1, 2010, the  department 
 Department of General Services  , in collaboration with the
 commission   department  , shall submit
to the Legislature an update to the January 1, 2010, report. 
  SEC. 207.    Section 25474 of the Public Resources Code is
amended to read: 
   25474.  (a) Any repayment of loans made pursuant to this chapter,
including interest payments, and all interest earnings on or accruing
to, any money resulting from the implementation of this chapter in
the Energy Efficient State Property Revolving Fund, shall be
deposited in that fund and shall be available for the purposes of
this chapter.
   (b) The  department   Department of General
Services  may recover costs of administering the projects and
related costs through energy utility rebates awarded to the state
agency as a result of completed projects up to 5 percent of the
project loan amounts. Project costs can include energy efficiency
improvements and costs associated with managing the project and
administering the loan program, including all reporting requirements.

  SEC. 208.    Section 25494 of the Public Resources Code is
amended to read: 
   25494.  Not later than July 31, 1978, the  commission
  department  shall prepare a manual outlining a
methodology by which governmental agencies and the general public may
at their option compare the lifecycle costs of various building
design alternatives. This manual will provide the information and
procedures necessary to evaluate a building's lifecycle costs in the
microclimate and utility service area where it is to be built. 
  SEC. 209.    Section 25495 of the Public Resources Code is
amended to read:
   25495.  No later than July 31, 1978, the  commission
  department  shall develop design guidelines for
new construction which include energy conserving options, including,
but not limited to, the use of daylighting, heating ventilation and
air conditioning economizer cycles, natural ventilation, building
envelope solar heat gain control mechanisms, and alternative energy
systems such as solar energy for space heating and water heating and
load management strategies. These guidelines and the cost analysis
done pursuant to Section 25494 may be considered by government
agencies at their option for ultimate selection of a building design
in the competitive bidding process. 
  SEC. 210.    Section 25496 of the Public Resources Code is
amended to read: 
   25496.  No later than July 1, 1978, the  commission
  department  shall develop and make available to
government agencies and the general public to be utilized at their
option lighting standards for existing buildings. These standards
shall address, but not be limited to, task and general area lighting
levels, light switching and control mechanisms, and lighting energy
budgets. The  commission   department  may
provide advice and recommendations to the public or any governmental
agency as to the standards. 
  SEC. 211.    Chapter 5.10 (commencing with Section 25499)
is added to Division 15 of the Public Resources Code, to read:
      CHAPTER 5.10.  LOW-INCOME ENERGY ASSISTANCE AND COMMUNITY
SERVICES


   25499.  (a) The Legislature finds and declares all of the
following:
   (1) Low-income energy assistance programs, including the Low
Income Home Energy Assistance Program (LIHEAP) and the Weatherization
Assistance Program (WAP), and Community Service Block Grant program
are administered in California through a statewide network of
community-based organizations, including public and private nonprofit
agencies, that serve as local service providers for a comprehensive
suite of assistance programs designed to ameliorate the causes and
impacts of poverty.
   (2) The network of local service providers work closely with their
fellow nonprofit agencies as well as the private sector to meet the
disparate needs of low-income individuals and families by providing a
variety of interrelated services, including home energy, nutrition,
housing, and employment.
   (3) Unlike various other energy conservation and energy efficiency
programs administered by the state, the state's LIHEAP and WAP are
designed specifically to meet the energy-related health and safety
needs of low-income individuals and families.
   (b) It is the intent of the Legislature to ensure that these
energy and community service programs funded by federal block grants
continue to be administered by a single entity that will maintain and
support the provision of a comprehensive suite of assistance
services to low-income individuals and families and that the positive
impact of these programs on the target population of low-income
individuals and families not be diluted or redirected to other
purposes.
   25499.1.  The programs transferred pursuant to subdivision (d) of
Section 25202 shall be identified as a separate line item in the
annual Budget Act.
   25499.2.  The department shall administer the programs and
activities transferred pursuant to subdivision (d) of Section 25202
in compliance with Article 1.7 (commencing with Section 16366.1) of
Chapter 2 of Part 2 of Division 4 of, and Chapter 9 (commencing with
Section 12725) of Part 2 of Division 3 of, Title 2 of the Government
Code. This chapter does not authorize the use of federal block grant
funds in a manner that is inconsistent with federal law or state law,
including Section 12758 of the Government Code.  
  SEC. 212.    Section 25500 of the Public Resources Code is
amended to read: 
   25500.  In accordance with the provisions of this division, the
 commission   board  shall have the
exclusive power to certify all sites and related facilities in the
state, whether a new site and related facility or a change or
addition to an existing facility. The issuance of a certificate by
the  commission   board  shall be in lieu
of any permit, certificate, or similar document required by any
state, local or regional agency, or federal agency to the extent
permitted by federal law, for such use of the site and related
facilities, and shall supersede any applicable statute, ordinance, or
regulation of any state, local, or regional agency, or federal
agency to the extent permitted by federal law.
   After the effective date of this division, no construction of any
facility or modification of any existing facility shall be commenced
without first obtaining certification for any such site and related
facility by the commission, as prescribed in this division. 
  SEC. 213.    Section 25500.5 of the Public Resources Code
is amended to read: 
   25500.5.  The  commission   board  shall
certify sufficient sites and related facilities which are required
to provide a supply of electric power sufficient to 
accomodate   accommodate  the demand projected in
the most recent forecast of statewide and service area electric power
demands adopted pursuant to subdivision (b) of Section 
25309   25302  . 
  SEC. 214.    Section 25501 of the Public Resources Code is
amended to read: 
   25501.  This chapter does not apply to any site or related
facility  for which the Public Utilities Commission has
issued a certificate of public convenience and necessity or which any
municipal utility has approved before January 7, 1975  
that was not subject to this chapter prior to January 1, 2011, and
that as of July 1, 2011, has an application accepted as complete by
the agency with   jurisdiction   on or before
December 31, 2010  . 
  SEC. 215.    Section 25501.7 of the Public Resources Code
is amended to read: 
   25501.7.   Any   A  person proposing to
construct a facility or a site to which Section 25501 applies may
waive the exclusion of  such   the  site
and related facility from the provisions of this chapter by
submitting to the  commission   department 
a notice to that effect on or after July 1, 1976, and any and all of
the provisions of this chapter shall apply to the construction of
 such   the  facility. 
  SEC. 216.    Section 25502 of the Public Resources Code is
repealed.  
   25502.  Each person proposing to construct a thermal powerplant or
electric transmission line on a site shall submit to the commission
a notice of intention to file an application for the certification of
the site and related facility or facilities. The notice shall be an
attempt primarily to determine the suitability of the proposed sites
to accommodate the facilities and to determine the general conformity
of the proposed sites and related facilities with standards of the
commission and assessments of need adopted pursuant to Sections 25305
to 25308, inclusive. The notice shall be in the form prescribed by
the commission and shall be supported by such information as the
commission may require.
   Any site and related facility once found to be acceptable pursuant
to Section 25516 is, and shall continue to be, eligible for
consideration in an application for certification without further
proceedings required for a notice under this chapter.  
  SEC. 217.    Section 25502.3 of the Public Resources Code
is repealed.  
   25502.3.  Except as provided in Section 25501.7, any person
proposing to construct a facility excluded from the provisions of
this chapter may waive such exclusion by submitting to the commission
a notice of intention to file an application for certification, and
any and all of the provisions of this chapter shall apply to the
construction of such facility.  
  SEC. 218.    Section 25503 of the Public Resources Code is
repealed.  
   25503.  Each notice of intention to file an application shall
contain at least three alternative sites and related facilities, at
least one of which shall not be located in whole or in part in the
coastal zone. In addition, the alternative sites and related
electrical facilities may be proposed from an inventory of sites
which have previously been approved by the commission in a notice of
intent or may be proposed from sites previously examined. 

  SEC. 219.    Section 25504 of the Public Resources Code is
repealed.  
   25504.  The notice of intention shall include a statement by the
applicant describing the location of the proposed sites by section or
sections, range and township, and county; a summary of the proposed
design criteria of the facilities; the type or types of fuels to be
used; the methods of construction and operation; the proposed
location of facilities and structures on each site; a preliminary
statement of the relative economic, technological, and environmental
advantages and disadvantages of the alternative site and related
facility proposals; a statement of need for the facility and
information showing the compatibility of the proposals with the most
recent electricity report issued pursuant to Section 25308; and any
other information that an electric utility deems desirable to submit
to the commission.  
  SEC. 220.    Section 25504.5 of the Public Resources Code
is repealed.  
   25504.5.  An applicant may, in the notice, propose a site to be
approved which will accomodate a potential maximum electric
generating capacity in excess of the capacity being proposed for the
initial approval of the commission. If such a proposal is made, the
notice shall include, but not be limited to, in addition to the
information specified in Section 25504, all of the following:
   (a) The number, type, and energy source of electric generating
units which the site is proposed ultimately to accomodate and the
maximum generating capacity for each unit.
   (b) The projected installation schedule for each unit.
   (c) The impact at the site when fully developed, on the
environment and public health and safety.
   (d) The amount and sources of cooling water needed at the fully
developed site.
   (e) The location and specifications of auxiliary facilities
planned for each state of development including, but not limited to,
pipelines, waste storage facilities, fuel storage facilities,
switchyards, coolant lines, coolant outfalls, and cooling ponds,
lakes, or towers.  
  SEC. 221.    Section 25505 of the Public Resources Code is
repealed.  
   25505.  Upon receipt of a notice, the commission shall cause a
summary of the notice to be published in a newspaper of general
circulation in each county in which the sites and related facilities,
or any part thereof, designated in the notice are proposed to be
located. The commission shall also transmit a copy of the notice to
the Public Utilities Commission, for sites and related facilities
requiring a certificate of public convenience and necessity, and to
other federal, state, regional, and local agencies having an interest
in matters pertinent to the proposed facilities at any of the
alternative sites. A copy of the notice shall also be transmitted to
the Attorney General.  
  SEC. 222.    Section 25506 of the Public Resources Code is
repealed.  
   25506.  The commission shall request the appropriate local,
regional, state, and federal agencies to make comments and
recommendations regarding the design, operation, and location of the
facilities designated in the notice, in relation to environmental
quality, public health and safety, and other factors on which they
may have expertise.  
  SEC. 223.    Section 25506.5 of the Public Resources Code
is repealed.  
   25506.5.  The commission shall request the Public Utilities
Commission, for sites and related facilities requiring a certificate
of public convenience and necessity, to make comments and
recommendations regarding the design, operation, and location of the
facilities designated in the notice in relation to the economic,
financial, rate, system reliability, and service implications of the
proposed facilities.  
  SEC. 224.    Section 25507 of the Public Resources Code is
repealed.  
   25507.  (a) If any alternative site and related facility proposed
in the notice is proposed to be located, in whole or in part, within
the coastal zone, the commission shall transmit a copy of the notice
to the California Coastal Commission. The California Coastal
Commission shall analyze the notice and prepare the report and
findings prescribed by subdivision (d) of Section 30413 prior to
commencement of hearings pursuant to Section 25513.
   (b) If any alternative site and related facility proposed in the
notice is proposed to be located, in whole or in part, within the
Suisun Marsh, or within the jurisdiction of the San Francisco Bay
Conservation and Development Commission, the commission shall
transmit a copy of the notice to the San Francisco Bay Conservation
and Development Commission. The San Francisco Bay Conservation and
Development Commission shall analyze the notice and prepare the
report and findings prescribed by subdivision (d) of Section 66645 of
the Government Code prior to commencement of hearings pursuant to
Section 25513.  
  SEC. 225.    Section 25508 of the Public Resources Code is
amended to read: 
   25508.  The  commission   department 
shall cooperate with, and render advice to, the California Coastal
Commission and the San Francisco Bay Conservation and Development
Commission in studying applications for any site and related facility
proposed to be located, in whole or in part, within the coastal
zone, the Suisun Marsh, or the jurisdiction of the San Francisco Bay
Conservation and Development Commission if requested by the
California Coastal Commission or the San Francisco Bay Conservation
and Development Commission, as the case may be. The California
Coastal Commission or the San Francisco Bay Conservation and
Development Commission, as the case may be, may participate in public
hearings on the notice and on the application for site and related
facility certification as an interested party in  such
  the  proceedings. 
  SEC. 226.    Section 25509 of the Public Resources Code is
repealed.  
   25509.  Within 45 days of the filing of the notice, the commission
shall conduct public informational presentations in the county or
counties in which the proposed sites and related facilities are
located. The place of such public informational presentations shall
be as close as practicable to the proposed sites. Such presentations
shall be for the purpose of setting forth the electrical demand basis
for the proposed site and related facility and providing knowledge
and understanding of the proposed facilities and sites. 

  SEC. 227.    Section 25509.5 of the Public Resources Code
is repealed.  
   25509.5.  No sooner than 15 days after the conclusion of the
presentations pursuant to Section 25509, the commission shall
commence nonadjudicatory hearings. Such hearings shall identify
issues for adjudication in hearings pursuant to Section 25513, issues
which may be eliminated from further consideration in the notice
proceedings, and issues which should be deferred to the certification
proceeding. Any person may participate to the extent deemed
reasonable and relevant by the presiding member of the commission in
any such hearing. In scheduling such hearings the presiding member
shall confer with the public adviser to provide that the hearing
dates and locations are as convenient as possible for interested
parties and the public. Such hearings shall be conducted in order to
accomplish all of the following purposes:
   (a) To set forth the electrical demand basis for the proposed site
and related facility.
   (b) To provide knowledge and understanding of proposed facilities
and sites.
   (c) To obtain the views and comments of the public, parties, and
concerned governmental agencies on the environmental, public health
and safety, economic, social, and land use impacts of the facility at
the proposed sites.
   (d) To solicit information regarding reasonable alternative
sources of the electric generating capacity or energy to be provided
by alternative sites and related facilities, or combinations thereof,
which will better carry out the policies and objectives of this
division.  
  SEC. 228.    Section 25510 of the Public Resources Code is
repealed.  
   25510.  After the conclusion of such hearings, and no later than
150 days after filing of the notice, the commission shall prepare and
make public a summary and hearing order on the notice of intention
to file an application. The commission may include within the summary
and hearing order any other alternatives proposed by the commission
or presented to the commission at a public hearing prior to
preparation of the summary and hearing order. The summary and hearing
order shall be published and made available to the public and to
interested local, regional, state, and federal agencies. 

  SEC. 229.    Section 25511 of the Public Resources Code is
repealed.  
   25511.  The commission shall review the factors related to safety
and reliability of the facilities at each of the alternative sites
designated in the notice. In addition to other information requested
of the applicant, the commission shall, in determining the
appropriateness of sites and related facilities, require detailed
information on proposed emergency systems and safety precautions,
plans for transport, handling and storage of wastes and fuels,
proposed methods to prevent illegal diversion of nuclear fuels,
special design features to account for seismic and other potential
hazards, proposed methods to control density of population in areas
surrounding nuclear powerplants, and such other information as the
commission may determine to be relevant to the reliability and safety
of the facility at the proposed sites. The commission shall analyze
the information provided by the applicant,
                    supplementing it, where necessary, by onsite
investigations and other studies. The commission shall determine the
adequacy of measures proposed by the applicant to protect public
health and safety, and shall include its findings in the final report
required by Section 25514.  
  SEC. 230.    Section 25512 of the Public Resources Code is
repealed.  
   25512.  The summary and hearing order shall be based upon the
record of the proceeding including statements or documents presented
during any hearing or informational presentation on the notice, the
comments transmitted by the Public Utilities Commission and local,
regional, state, and federal agencies and the public to the
commission, and independent studies conducted by the commission's
staff.
   The summary and hearing order shall:
   (a) Identify those issues for consideration in hearings pursuant
to Section 25513.
   (b) Identify those issues which may be eliminated from further
consideration in the notice of intention proceedings.
   (c) Identify those issues which should be deferred to the
certification proceeding.
   (d) Contain proposed findings on matters relevant to the
provisions of Section 25514.
   (e) Specify dates for the adjudicatory hearings.  
  SEC. 231.    Section 25512.5 of the Public Resources Code
is repealed.  
   25512.5.  Within 15 days of the publication of the summary and
hearing order, a copy will be distributed to any person who requests
such copy.  
  SEC. 232.    Section 25513 of the Public Resources Code is
repealed.  
   25513.  No earlier than 30 days after distribution of the summary
and hearing order, the commission shall commence adjudicatory
hearings pursuant to the hearing order.  
  SEC. 233.    Section 25514 of the Public Resources Code is
repealed.  
   25514.  After conclusion of the hearings held pursuant to Section
25513 and no later than 300 days after the filing of the notice, a
final report shall be prepared and distributed. The final report
shall include, but not be limited to, all of the following:
   (a) The findings and conclusions of the commission regarding the
conformity of alternative sites and related facilities designated in
the notice or considered in the notice of intention proceeding with
both of the following:
   (1) The 12-year forecast of statewide and service area electric
power demands adopted pursuant to subdivision (e) of Section 25305,
except as provided in Section 25514.5.
   (2) Applicable local, regional, state, and federal standards,
ordinances, and laws, including any long-range land use plans or
guidelines adopted by the state or by any local or regional planning
agency, which would be applicable but for the exclusive authority of
the commission to certify sites and related facilities; and the
standards adopted by the commission pursuant to Section 25216.3.
   (b) Any findings and comments submitted by the California Coastal
Commission pursuant to Section 25507 and subdivision (d) of Section
30413.
   (c) Any findings and comments submitted by the San Francisco Bay
Conservation and Development Commission pursuant to Section 25507 of
this code and subdivision (d) of Section 66645 of the Government
Code.
   (d) The commission's findings on the acceptability and relative
merit of each alternative siting proposal designated in the notice or
presented at the hearings and reviewed by the commission. The
specific findings of relative merit shall be made pursuant to
Sections 25502 to 25516, inclusive. In its findings on any
alternative siting proposal, the commission may specify modification
in the design, construction, location, or other conditions which will
meet the standards, policies, and guidelines established by the
commission.
   (e) Findings and conclusions with respect to the safety and
reliability of the facility or facilities at each of the sites
designated in the notice, as determined by the commission pursuant to
Section 25511, and any conditions, modifications, or criteria
proposed for any site and related facility proposal resulting from
the findings and conclusions.
   (f) Findings and conclusions as to whether increased property
taxes due to the construction of the project are sufficient to
support needed local improvements and public services required to
serve the project.  
  SEC. 234.    Section 25514.3 of the Public Resources Code
is repealed.  
   25514.3.  In specifying any modifications, conditions, or criteria
pursuant to Section 25514, for sites and related facilities
requiring a certificate of public convenience and necessity, the
commission shall request the comments and recommendations of the
Public Utilities Commission on the economic, financial, rate, system
reliability, and service implications of such modifications,
conditions, or criteria.  
  SEC. 235.    Section 25514.5 of the Public Resources Code
is repealed.  
   25514.5.  In considering the acceptability of a site proposed to
accommodate ultimately additional power-generating capacity, the
commission, in determining, pursuant to Sections 25514 and 25512, the
conformity of the facilities proposed in the notice with the 12-year
forecast of statewide and service area electric power demands
adopted pursuant to subdivision (e) of Section 25305, shall base its
determination only on such initial facilities as are proposed for
operation within the forthcoming 12-year period. Additional
facilities projected to be operating at the site at a time beyond the
forthcoming 12-year period shall not be considered in the
determination of conformity with the electric power demand forecast.
 
  SEC. 236.    Section 25515 of the Public Resources Code is
repealed.  
   25515.  No later than 30 days after the final report is
distributed, a hearing or hearings on the final report shall be
commenced. Such hearings shall be concluded within 15 days of their
commencement.  
  SEC. 237.    Section 25516 of the Public Resources Code is
repealed.  
   25516.  The approval of the notice by the commission shall be
based upon findings pursuant to Section 25514. The notice shall not
be approved unless the commission finds at least two alternative site
and related facility proposals considered in the commission's final
report as acceptable. If the commission does not find at least two
sites and related facilities acceptable, additional sites and related
facilities may be proposed by the applicant which shall be
considered in the same manner as those proposed in the original
notice.
   If the commission finds that a good faith effort has been made by
the person submitting the notice to find an acceptable alternative
site and related facility and that there is only one acceptable site
and related facility among those submitted, the commission may
approve the notice based on the one site and related facility. If a
notice is approved based on one site and related facility, the
commission may require a new notice to be filed to identify
acceptable alternative sites and related facilities for the one site
and related facility approved unless suitable alternative sites and
related facilities have been approved by the commission in previous
notice of intention proceedings.
   If the commission finds that additional electric generating
capacity is needed to accommodate the electric power demand forecast
pursuant to subdivision (e) of Section 25305 and, after the
commission finds that a good faith effort was made by the person
submitting the notice to propose an acceptable site and related
facility, it fails to find any proposed site and related facility to
be acceptable, the commission shall designate, at the request of and
at the expense of the person submitting the notice, a feasible site
and related facility for providing the needed electric generating
capacity.  
  SEC. 238.    Section 25516.1 of the Public Resources Code
is repealed.  
   25516.1.  If a site and related facility found to be acceptable by
the commission pursuant to Section 25516 is located in the coastal
zone, the Suisun Marsh, or the jurisdiction of the San Francisco Bay
Conservation and Development Commission, no application for
certification may be filed pursuant to Section 25519 unless the
commission has determined, pursuant to Section 25514, that such site
and related facility have greater relative merit than available
alternative sites and related facilities for an applicant's service
area which have been determined to be acceptable by the commission
pursuant to Section 25516.  
  SEC. 239.    Section 25516.5 of the Public Resources Code
is repealed.  
   25516.5.  On a notice which proposes an expanded ultimate electric
generating capacity for a site, the commission may, based upon
findings pursuant to Section 25514, either approve the notice only
for the initial facility or facilities proposed for operation within
the forthcoming 12-year period or may approve the notice for the
initial facility or facilities and find the site acceptable for
additional generating capacity of the type tentatively proposed. The
maximum allowable amount and type of such additional capacity shall
be determined by the commission.
   If a notice is approved which includes a finding that a particular
site is suitable to accommodate a particular additional generating
capacity, the site shall be designated a potential multiple-facility
site. The commission may, in determining the acceptability of a
potential multiple-facility site, specify conditions or criteria
necessary to insure that future additional facilities will not exceed
the limitations of the site.  
  SEC. 240.    Section 25516.6 of the Public Resources Code
is repealed.  
   25516.6.  (a) Except as otherwise expressly provided in this
division, the commission shall issue its written decision on the
notice not later than 12 months after the notice is filed, or at any
later time as is mutually agreed upon by the commission and the
applicant.
   (b) The commission shall determine, within 45 days after it
receives the notice, whether the notice is complete. If the
commission determines that the notice is complete, the notice shall
be deemed filed for the purpose of this section on the date that this
determination is made. If the commission determines that the notice
is incomplete, the commission shall specify, in writing, those parts
of the notice which are incomplete and shall indicate the manner in
which it can be made complete. If the applicant submits additional
data to complete the notice, the commission shall determine, within
30 days after receipt of that data, whether the data is sufficient to
make the notice complete. The notice shall be deemed filed on the
date the commission determines the notice is complete if the
commission has adopted regulations specifying the informational
requirements for a complete notice, but if the commission has not
adopted regulations, the notice shall be deemed filed on the last
date the commission receives any additional data that completes the
notice.  
  SEC. 241.    Section 25517 of the Public Resources Code is
amended to read: 
   25517.  Except as provided in Section 25501,  no 
construction of  any   a  thermal  or
nonthermal solar  powerplant  of 50 megawatts or greater
 or electric transmission line shall  not  be commenced
by any 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   board  to be necessary to
protect the environment, if certification is denied. 
  SEC. 242.    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
  department  . The application shall be in a form
prescribed by the  commission and shall be for a site and
related facility that has been found to be acceptable by the
commission pursuant to Section 25516, or for an additional facility
at a site that has been designated a potential multiple-facility site
pursuant to Section 25514.5 and found to be acceptable pursuant to
Sections 25516 and 25516.5. An application for an additional facility
at a potential multiple-facility site shall be subject to the
conditions and review specified in Section 25520.5. An application
may not be filed for a site and related facility, if there is no
suitable alternative for the site and related facility that was
previously found to be acceptable by the commission, unless the
commission has approved the notice based on the one site as specified
in Section 25516   department  .
   (b) The  commission   board  , 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   department  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   board's 
regulatory program governing site and facility certification and
related proceedings are certified by the  Natural  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   department  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   department  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   department  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   department  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
  department  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
  department  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   department  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   department  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   board  requires modification
of the proposed facility, the  commission  
board and the department  shall consult with the Public
Utilities Commission regarding the economic, financial, rate, system
reliability, and service implications of those modifications.
   (k) The  commission   department  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   department  shall request
any relevant laws, ordinances, or regulations that an agency has
promulgated or administered.
   (l) 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. 243.   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
  board  by regulation may require:
   (a) A detailed description of the design, construction, and
operation of the proposed facility.
   (b) Safety and reliability information, including,  in
addition to documentation previously provided pursuant to Section
25511   but not limited to  , planned provisions
for emergency operations and shutdowns.
   (c) Available site information, including maps and descriptions of
present and proposed development and, as appropriate, geological,
aesthetic, ecological, seismic, water supply, population, and load
center data, and justification for the particular site proposed.
   (d) Any other information relating to the design, operation, and
siting of the facility that the  commission  
board  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 thermal 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. 244.    Section 25520.5 of the Public Resources Code
is repealed.  
   25520.5.  (a) In reviewing an application for an additional
facility at a potential multiple-facility site, the commission shall
undertake a reconsideration of its prior determinations in the final
report on the notice for the site issued pursuant to Section 25514,
based on current conditions and other reasonable and feasible
alternatives to the proposed facility.
   (b) Within 180 days of the filing of the application for an
additional facility at a potential multiple-facility site and after
adequate public hearings, the commission shall issue its decision on
the acceptability of the proposed facility based on the
reconsideration specified in subdivision (a) of this section. A
negative determination shall be the final decision of the commission
on the application and subject to judicial review pursuant to Section
25531. An affirmative determination shall not be a final decision of
the commission on the application.
   (c) The decision of the commission on an application for an
additional facility at a potential multiple-facility site receiving a
favorable determination pursuant to subdivision (b) of this section
shall be issued within 24 months after the filing of the application
or at such later time as is mutually agreed upon by the commission
and the applicant.  
  SEC. 245.    Section 25521 of the Public Resources Code is
amended to read: 
   25521.  No earlier than 90 nor later than 240 days after the date
of the filing of an application, the  commission 
 board  shall commence a public hearing or hearings on the
application in Sacramento, San Francisco, Los Angeles, or San Diego,
whichever city is nearest the proposed site. Additionally, the
 commission   board  may hold a hearing or
hearings in the county in which the proposed site and related
facilities are to be located. The  commission  
board  hearings shall provide a reasonable opportunity for the
public and all parties to the proceeding to comment upon the
application and the  commission   department
 staff assessment and shall provide the equivalent opportunity
for comment as required pursuant to Division 13 (commencing with
Section 21000). Consistent with the requirements of this section, the
 commission   board  shall have the
discretion to determine whether or not a hearing is to be conducted
in a manner that requires formal examination of witnesses or that
uses other similar adjudicatory procedures. 
  SEC. 246.    Section 25522 of the Public Resources Code is
amended to read: 
   25522.  (a)  Except as provided in subdivision (c) of
Section 25520.5, within 18   Within 12  months of
the filing of an application for certification  , or within
12 months if it is filed within one year of the commission's approval
of the notice of intent,  or at any later time as is
mutually agreed by the  commission   board 
and the applicant, the  commission   board
 shall issue a written decision as to the application.
   (b) The  commission   department  shall
determine, within 45 days after it receives the application, whether
the application is complete. If the  commission 
 department  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
  department  determines that the application is
incomplete, the  commission   department 
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   department 
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   department  determines the application
is complete if the  commission  board  has
adopted regulations specifying the informational requirements for a
complete application, but if the  commission  
board  has not adopted regulations, the application shall be
deemed filed on the last date the  commission  
department  receives any additional data that completes the
application. 
    SEC. 247.    Section 25523 of the Public Resources Code
is amended to read: 
   25523.  The  commission   board  shall
prepare a written decision after the public hearing on an
application,  which   that  includes all of
the following:
   (a) Specific provisions relating to the manner in which the
proposed facility is to be designed, sited, and operated in order to
protect environmental quality and  assure  
ensure  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   board
 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  board  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
  board  pursuant to Section 25216.3 and
subdivision (d) of Section 25402, with public safety standards and
the applicable air and water quality standards, and with other
applicable local, regional, state, and federal standards, ordinances,
or laws. If the  commission   board  finds
that there is noncompliance with a state, local, or regional
ordinance or regulation in the application, it 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   board  shall inform the state, local,
or regional governmental agency if it makes the findings required by
Section 25525.
   (2) The  commission   board  may not
find that the proposed facility conforms with applicable air quality
standards pursuant to paragraph (1) unless the applicable air
pollution control district or air quality management district
certifies, prior to the licensing of the project by the 
commission   board  , that complete emissions
offsets for the proposed facility have been identified and will be
obtained by the applicant within the time required by the district's
rules or unless the applicable air pollution control district or air
quality management district certifies that the applicant requires
emissions offsets to be obtained prior to the commencement of
operation consistent with Section 42314.3 of the Health and Safety
Code and prior to commencement of the operation of the proposed
facility. The  commission   board  shall
require as a condition of certification that the applicant obtain any
required emission offsets within the time required by the applicable
district rules, consistent with any applicable federal and state
laws and regulations, and prior to the commencement of the operation
of the proposed facility.
   (e) Provision for restoring the site as necessary to protect the
environment, if the  commission   board 
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. 248.    Section 25524.1 of the Public Resources Code
is amended to read: 
   25524.1.  (a) Except for the existing Diablo Canyon Units 1 and 2
owned by Pacific Gas and Electric Company and San Onofre Units 2 and
3 owned by Southern California Edison Company and San Diego Gas and
Electric Company,  no   a  nuclear fission
thermal powerplant requiring the reprocessing of fuel rods, including
any to which this chapter does not otherwise apply, excepting any
having a vested right as defined in this section, shall  not
 be permitted land use in the state or, where applicable,
certified by the  commission   board  until
both of the following conditions are met:
   (1) The  commission   board  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   board  has
reported its findings and the reasons therefor pursuant to paragraph
(1) to the Legislature. That report shall be assigned to the
appropriate policy committees for review. The  commission
  board  may proceed to certify nuclear fission
thermal powerplants 100 legislative days after reporting  its
  the board'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   board  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   board  as to an appropriate
method of bringing the  commission's   board's
 findings into conformance with paragraph (1).
   (4) If a disaffirming resolution is adopted, the 
commission  board  shall reexamine its original
findings consistent with matters raised in the resolution. On
conclusion of its reexamination, the  commission 
 board  shall transmit its findings in writing, with the
reasons therefor, to the Legislature.
   (5) If the findings are that the conditions of paragraph (1) have
been met, the  commission   board  may
proceed to certify nuclear fission thermal powerplants 100
legislative days after reporting its findings to the Legislature
unless within those 100 legislative days both houses of the
Legislature act by statute to declare the findings null and void and
 takes   take  appropriate action.
   (6) To allow sufficient time for the Legislature to act, the
reports of findings of the  commission   board
 shall be submitted to the Legislature at least six calendar
months prior to the adjournment of the Legislature sine die.
   (b) The  commission   board  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   department  shall
continue to receive and process  notices of intention and
 applications for certification pursuant to this division,
but  the board  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   that  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. 249.    Section 25524.2 of the Public Resources Code
is amended to read: 
   25524.2.  Except for the existing Diablo Canyon Units 1 and 2
owned by Pacific Gas and Electric Company and San Onofre Units 2 and
3 owned by Southern California Edison Company and San Diego Gas and
Electric Company,  no   a  nuclear fission
thermal powerplant, including any to which this chapter does not
otherwise apply, but excepting those exempted herein, shall  not
 be permitted land use in the state, or where applicable, be
certified by the  commission   board  until
both of the following conditions have been met:
   (a) The  commission   board  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   board  has
reported its findings and the reasons therefor pursuant to paragraph
(a) to the Legislature. That report shall be assigned to the
appropriate policy committees for review. The  commission
  board  may proceed to certify nuclear fission
thermal powerplants 100 legislative days after reporting its 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  
board  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   board  as to an appropriate
method of bringing the commission's   board's
 findings into conformance with subdivision (a).
   (3) If a disaffirming resolution is adopted, the 
commission   board  shall reexamine its original
findings consistent with matters raised in the resolution. On
conclusion of its reexamination, the  commission 
 board  shall transmit its findings in writing, with the
reasons therefor, to the Legislature.
   (4) If the findings are that the conditions of subdivision (a)
have been met, the  commission   board  may
proceed to certify nuclear fission thermal powerplants 100
legislative days after reporting its findings to the Legislature
unless within those 100 legislative days both houses of the
Legislature act by statute to declare the findings null and void and
take appropriate action.
   (5) To allow sufficient time for the Legislature to act, the
reports of findings of the  commission   board
 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   board  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   board  shall
continue to receive and process notices of intention and applications
for certification pursuant to this division but 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   that
 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. 250.    Section 25524.5 of the Public Resources Code
is repealed.  
   25524.5.  The commission shall not certify any facility which adds
generating capacity to a potential multiple-facility site in excess
of the maximum allowable capacity established by the commission
pursuant to Section 25516.5, unless the commission finds that
exceeding the maximum allowable capacity will not increase adverse
environmental impacts or create technological, seismic, or other
difficulties beyond those already found acceptable in the commission'
s findings on the notice for that site pursuant to Sections 25516 and
25516.5.  
  SEC. 251.    Section 25525 of the Public Resources Code is
amended to read: 
   25525.  The  commission may   board shall
 not certify a facility contained in the application 
when   if  it finds, pursuant to subdivision (d) of
Section 25523, that the facility does not conform with any
applicable state, local, or regional standards, ordinances, or laws,
unless the  commission   board  determines
that the facility is required for public convenience and necessity
and that there are not more prudent and feasible means of achieving
public convenience and necessity. In making the determination, the
 commission   board  shall consider the
entire record of the proceeding, including, but not limited to, the
impacts of the facility on the environment, consumer benefits, and
electric system reliability. The  commission may 
 board 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. 252.    Section 25526 of the Public Resources Code is
amended to read: 
   25526.  (a) The  commission   board 
shall not approve as a site for a facility any location designated by
the California Coastal Commission pursuant to subdivision (b) of
Section 30413, unless the California Coastal Commission first finds
that  such   the  use is not inconsistent
with the primary uses of  such   that  land
and that there will be no substantial adverse environmental effects
and unless the approval of any public agency having ownership or
control of  such   the  land is obtained.
   (b) The  commission   board  shall not
approve as a site for a facility any location designated by the San
Francisco Bay Conservation and Development Commission pursuant to
subdivision (b) of Section 66645 of the Government Code unless the
San Francisco Bay Conservation and Development Commission first finds
that such use is not inconsistent with the primary uses of such land
and that there will be no substantial adverse environmental effects
and unless the approval of any public agency having ownership or
control of  such   the  land is obtained.

  SEC. 253.    Section 25527 of the Public Resources Code is
amended to read: 
   25527.  The following areas of the state shall not be approved as
a site for a facility, unless the  commission  
board  finds that  such   the  use is
not inconsistent with the primary uses of  such 
 those  lands and that there will be no substantial adverse
environmental effects and the approval of any public agency having
ownership or control of  such   those 
lands is obtained:
   (a) State, regional, county and city parks; wilderness, scenic
 ,  or natural reserves; areas for wildlife protection,
recreation, historic preservation; or natural preservation areas in
existence on the effective date of this division.
   (b) Estuaries in an essentially natural and undeveloped state.
   In considering applications for certification, the 
commission   board  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. 254.    Section 25528 of the Public Resources Code is
amended to read: 
   25528.  (a) The  commission   board 
shall require, as a condition of certification of any site and
related facility, that the applicant acquire, by grant or contract,
the right to prohibit development of privately owned lands in the
area of the proposed site  which   that 
will result in population densities in excess of the maximum
population densities  which   that  the
 commission   board  determines, as to the
factors considered by the  commission   board
 pursuant to Section 25511, are necessary to protect public
health and safety.
   If the applicant is authorized to exercise the right of eminent
domain under Article 7 (commencing with Section 610) of Chapter 3 of
Part 1 of Division 1 of the Public Utilities Code, the applicant may
exercise the right of eminent domain to acquire  such
  those  development rights  as 
 that  the  commission   board 
requires be acquired.
   (b) In the case of an application for a nuclear facility, the area
and population density necessary to  insure  
ensure  the public's health and safety designated by the
 commission   board  shall be that as
determined from time to time by the United States Nuclear Regulatory
Commission, if the  commission   board 
finds that  such   the  determination is
sufficiently definitive for valid land use planning requirements.
   (c) The  commission   board  shall waive
the requirements of the acquisition of development rights by an
applicant to the extent that the  commission  
board  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   ensure 
the public health and safety requirements set pursuant to this
section.
   (d) No change in governmental land use restrictions in 
such  areas designated in subdivision (c) of this section by
any government agency shall be effective until approved by the
 commission   board  .  Such
  This  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. 255.    Section 25529 of the Public Resources Code is
amended to read: 
   25529.   When   If  a facility is
proposed to be located in the coastal zone or any other area with
recreational, scenic, or historic value, the  commission
  board  shall require, as a condition of
certification of any facility contained in the application, that an
area be established for public use, as determined by the 
commission   board  . Lands within  such
  the  area shall be acquired and maintained by the
applicant and shall be available for public access and use, subject
to restrictions required for security and public safety. The
applicant may dedicate  such   the  public
use zone to any local agency agreeing to operate or maintain it for
the benefit of the public. If no local agency agrees to operate or
maintain the public use zone for the benefit of the public, the
applicant may dedicate  such   the  zone to
the state. The  commission   board  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. 256.    Section 25530 of the Public Resources Code is
amended to read: 
   25530.   (a)    The  commission
  board  may order a reconsideration of all or part
of a decision or order on its own motion or on petition of any
party. 
   Any such 
    (b)     The  petition  for
reconsideration  shall be filed within 30 days after adoption by
the  commission   board  of a decision or
order. The  commission   board  shall not
order a reconsideration on its own motion more than 30 days after it
has adopted a  decision  or order. The  commission
  board  shall order or deny reconsideration on a
petition  therefor  within 30 days after the
petition is filed. 
   A 
    (c)     A  decision or order may be
reconsidered by the  commission   board  on
the basis of all pertinent portions of the record together with
 such   any  argument  as 
 that  the  commission   board 
may permit, or the commission   board  may
hold a further hearing, after notice to all interested persons. A
decision or order of the  commission   board
 on reconsideration shall have the same force and effect as an
original order or decision. 
  SEC. 257.    Section 25531 of the Public Resources Code is
amended to read: 
   25531.  (a) The decisions of the  commission 
 board  on any application for certification of a site and
related facility are subject to judicial review by the Supreme Court
of California.
   (b)  No new   New  or additional
evidence  may   shall not  be introduced
upon review and the cause shall be heard on the record of the
 commission   board  as certified to by it.
The review shall not be extended further than to determine whether
the  commission   board  has regularly
pursued its 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  
board  on questions of fact are final and are not subject to
review, except as provided in this article. These questions of fact
shall include ultimate facts and the findings and conclusions of the
 commission   board  . A report prepared
by, or an approval of, the  commission   board
 pursuant to Section 25510, 25514, 25516, or 25516.5, or
subdivision (b) of Section 25520.5, shall not constitute a decision
of the  commission   board  subject to
judicial review.
   (c) Subject to the right of judicial review of decisions of the
 commission   board  , no court in this
state has jurisdiction to hear or determine any case or controversy
concerning any matter which was, or could have been, determined in a
proceeding before the  commission   board 
, or to stop or delay the construction or operation of any thermal
powerplant except to enforce compliance with the provisions of a
decision of the  commission  board  .
   (d) Notwithstanding Section 1250.370 of the Code of Civil
Procedure:
   (1) If the  commission   board 
requires, pursuant to subdivision (a) of Section 25528, as a
condition of certification of any site and related facility, that the
applicant acquire development rights, that requirement conclusively
establishes the matters referred to in Sections 1240.030 and 1240.220
of the Code of Civil Procedure in any eminent domain proceeding
brought by the applicant to acquire the development rights.
   (2) If the  commission   board 
certifies any site and related facility, that certification
conclusively establishes the matters referred to in Sections 1240.030
and 1240.220 of the Code of Civil Procedure in any eminent domain
proceeding brought to acquire the site and related facility.
   (e)  No   A  decision of the 
commission   board  pursuant to Section 25516,
25522, or 25523 shall  not  be found to mandate a specific
supply plan for any utility as prohibited by Section 25323. 
  SEC. 258.    Section 25532 of the Public Resources Code is
amended to read: 
   25532.  The  commission   department 
shall establish a monitoring system to assure that any facility
certified under this division is constructed and is operating in
compliance with air and water quality, public health and safety, and
other applicable regulations, guidelines, and conditions adopted or
established by the  commission   board  or
specified in the written decision on the application. In designing
and operating the monitoring system, the  commission
  department  shall seek the cooperation and
assistance of the State Air Resources Board, the State Water
Resources Control Board, the Department of Health, and other state,
regional, and local agencies which have an interest in environmental
control. 
  SEC. 259.    Section 25534 of the Public Resources Code is
amended to read: 
   25534.  (a) The  commission   board 
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  
board  , or included in supplemental documentation provided by
the applicant.
   (2) Any significant failure to comply with the terms or conditions
of approval of the application, as specified by the 
commission   board  in its written decision.
   (3) A violation of this division or any regulation or order issued
by the  commission   board  under this
division. 
   (4) The owner of a project does not start construction of the
project within 12 months after the date all permits necessary for the
project become final and all administrative and judicial appeals
have been resolved provided the California Consumer Power and
Conservation Financing Authority notifies the commission 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   board  may also
administratively impose a civil penalty for a violation of paragraph
(1) or (2) of subdivision (a)
     . Any civil penalty shall be imposed in accordance with Section
25534.1 and may not exceed seventy-five thousand dollars ($75,000)
per violation, except that the civil penalty may be increased by an
amount not to exceed one thousand five hundred dollars ($1,500) per
day for each day in which the violation occurs or persists, but the
total of the per day penalties may not exceed fifty thousand dollars
($50,000).
   (c) A project owner shall commence construction of a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) within 12 months after the project has been
certified by the  commission   board  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   board  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   board  shall
approve milestones within 60 days after project certification. If
the 30-day deadline to submit construction milestones to the 
commission   board  is not met, the 
commission   board  shall establish milestones for
the project. 
   (d) The failure of the owner of a project subject to the
start-of-construction deadline provided by paragraph (4) of
subdivision (a) to meet construction or commercial operation
milestones, without a finding by the commission of good cause, shall
be cause for revocation of certification or the imposition of other
penalties by the commission.  
   (e) A finding by the commission that there is good cause for
failure to meet the start-of-construction deadline required by
paragraph (4) of subdivision (a) or any subsequent milestones of
subdivision (c) shall be made if the commission determines that any
of the following criteria are met:  
   (1) The change in any deadline or milestone does not change the
established deadline or milestone for the start of commercial
operation.  
   (2) The deadline or milestone is changed due to circumstances
beyond the project owner's control, including, but not limited to,
administrative and legal appeals.  
   (3) The deadline or milestone will be missed but the project owner
demonstrates a good faith effort to meet the project deadline or
milestone.  
   (4) The deadline or milestone will be missed due to unforeseen
natural disasters or acts of God that prevent timely completion of
the project deadline or milestone.  
   (5) The deadline or milestone will be missed for any other reason
determined reasonable by the commission.  
   (f) The commission shall extend the start-of-construction deadline
required by paragraph (4) of subdivision (a) by an additional 24
months, if the owner reimburses the commission's actual cost of
licensing the project, less the amount paid pursuant to subdivision
(a) of Section 25806. For the purposes of this section, the
commission's actual cost of licensing the project shall be based on a
certified audit report filed by the commission staff within 180 days
of the commission's certification of the project. The certified
audit shall be filed and served on all parties to the proceeding, is
subject to public review and comment, and is subject to at least one
public hearing if requested by the project owner. Any reimbursement
received by the commission pursuant to this subdivision shall be
deposited in the General Fund.  
   (g) If the owner of a project subject to the start-of-construction
deadline provided by paragraph (4) of subdivision (a) fails to
commence construction, without good cause, within 12 months after the
project has been certified by the commission and has not received an
extension pursuant to subdivision (f), the commission shall provide
immediate notice to the California Consumer Power and Conservation
Financing Authority. The authority shall evaluate whether to pursue
the project independently or in conjunction with any other public or
private entity, including the original certificate holder. If the
authority demonstrates to the commission that it is willing and able
to construct the project either independently or in conjunction with
any other public or private entity, including the original
certificate holder, the commission may revoke the original
certification and issue a new certification for the project to the
authority, unless the authority's statutory authorization to finance
or approve new programs, enterprises, or projects has expired. If the
authority declines to pursue the project, the permit shall remain
with the current project owner until it expires pursuant to the
regulations adopted by the commission.  
   (h) If the commission issues a new certification for a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) to the authority, the commission shall adopt
new milestones for the project that allow the authority up to 24
months to start construction of the project or to start to meet the
applicable deadlines or milestones. If the authority fails to begin
construction in conformity with the deadlines or milestones adopted
by the commission, without good cause, the certification may be
revoked.  
   (i) (1) If the commission issues a new certification for a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) to the authority and the authority pursues the
project without participation of the original certificate holder,
the authority shall offer to reimburse the original certificate
holder for the actual costs the original certificate holder incurred
in permitting the project and in procuring assets associated with the
license, including, but not limited to, major equipment and the
emission offsets. In order to receive reimbursement, the original
certificate holder shall provide to the commission documentation of
the actual costs incurred in permitting the project. The commission
shall validate those costs. The certificate holder may refuse to
accept the offer of reimbursement for any asset associated with the
license and retain the asset. To the extent the certificate holder
chooses to accept the offer for an asset, it shall provide the
authority with the asset.  
   (2) If the authority reimburses the original certificate holder
for the costs described in paragraph (1), the original certificate
holder shall provide the authority with all of the assets for which
the original certificate holder received reimbursement. 

   (j) This section does not prevent a certificate holder from
selling its license to construct and operate a project prior to its
revocation by the commission. 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.  
   (l) Paragraph (4) of subdivision (a) and subdivisions (c) to (j),
inclusive, do not apply to licenses issued to "local publicly owned
electric utilities," as defined in Section 224.3 of the Public
Utilities Code, whose governing bodies certify to the commission that
the project is needed to meet the projected native load of the local
publicly owned utility.  
   (m) To implement this section, the commission and the California
Consumer Power and Conservation Financing Authority may, in
consultation with each other, adopt emergency regulations in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. For purposes of
that chapter, including, without limitation, Section 11349.6 of the
Government Code, the adoption of the regulations shall be considered
by the Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, or general
welfare.  
  SEC. 260.    Section 25534.1 of the Public Resources Code
is amended to read: 
   25534.1.  (a) The  executive director of the commission
  department  may issue a complaint to any person
or entity on whom an administrative civil penalty may be imposed
pursuant to Section 25534. The complaint shall allege the act or
failure to act for which the civil penalty is proposed, the provision
of law authorizing civil liability, and the proposed civil penalty.
   (b) The complaint shall be served by personal notice or certified
mail, and shall inform the party so served that a hearing will be
conducted within 60 days after the party has been served. The hearing
shall be before the  commission   board  .
The complainant may waive the right to a hearing, in which case the
 commission   board  shall not conduct a
hearing.
   (c) After any hearing, the  commission  
board  may adopt, with or without revision, the proposed
decision and order of the  executive director  
department  .
   (d) Orders setting an administrative civil penalty shall become
effective and final upon issuance thereof, and any payment shall be
made within 30 days. Copies of these orders shall be served by
personal service or by registered mail upon the party served with the
complaint and upon other persons who appeared at the hearing and
requested a copy.
   (e) In determining the amount of the administrative civil penalty,
the  commission   board  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. 261.    Section 25534.2 of the Public Resources Code
is amended to read: 
   25534.2.  (a) Within 30 days after service of an order issued
under Section 25534.1, any aggrieved party may file with the superior
court a petition for writ of mandate for review thereof pursuant to
Section 1094.5 of the Code of Civil Procedure. If no aggrieved party
petition for a writ of mandate is filed within the time provided by
this section, an order of the  commission  
board  is not subject to review by any court or agency, except
that the  commission   board  may grant
review on its own motion of an order issued under Section 25534.1
after the expiration of the time limits set by this section.
   (b) Upon request of the  commission   board
 , the Attorney General shall institute an action in the
appropriate superior court to collect and recover any administrative
civil penalties imposed pursuant to Section 25534.1. The court shall
accord priority on its calendar to any action under this subdivision.

   (c) Any moneys recovered by the  commission  
board  pursuant to this section shall be deposited in the
General Fund. 
  SEC. 262.    Section 25537 of the Public Resources Code is
amended to read: 
   25537.  Upon approval of an application  by the board ,
the  commission   department  shall forward
to the United States Nuclear Regulatory Commission, the
Environmental Protection Agency, and to other appropriate federal
agencies, the results of its studies including the environmental
impact report on the facility, the written decision on the facility
contained in the application, and the  commission's 
 board's  determination of facility safety and reliability
as provided in Section 25511. 
  SEC. 263.    Section 25538 of the Public Resources Code is
amended to read: 
   25538.  Upon receiving the  commission's  
board's  request for review under subdivision (f) of Section
25519 and Section 25506, the local agency may request a fee from the
 commission   board  to reimburse the local
agency for the actual and added costs of this review by the local
agency. The  commission   board  shall
reimburse the local agency for the added costs that shall be actually
incurred by the local agency in complying with the 
commission's   board's  request. The local agency
may also request reimbursement for permit fees that the local agency
would receive but for the operation of Section 25500, provided,
however, that  such  these  fees may only
be requested in accordance with actual services performed by the
local agency. The  commission   board 
shall either request a fee from the person proposing the project or
devote a special fund in its budget  ,  for the
reimbursement of  such   these  costs
incurred by local agencies. 
  SEC. 264.    Section 25539 of the Public Resources Code is
amended to read: 
   25539.  In reviewing notices and applications for certification of
modifications of existing facilities, the  commission
  boa   rd  shall adopt rules and
regulations as necessary to  insure   ensure
 that relevant duties pursuant to this division are carried out.

  SEC. 265.    Section 25540 of the Public Resources Code is
amended to read: 
   25540.  If a person proposes to construct a geothermal powerplant
and related facility or facilities on a site, the  commission
  board  shall not require three alternative sites
and related facilities to be proposed in the notice. Except as
otherwise provided, the  commission   board
 shall issue its findings on the notice, as specified in Section
25514, within nine months from the date of filing of such notice,
and shall issue its final decision on the application, as specified
in Section 25523, within nine months from the date of the filing of
the application for certification, or at such later time as is
mutually agreed to by the  commission   board
 and the applicant or person submitting the notice or
application. 
  SEC. 266.    Section 25540.1 of the Public Resources Code
is amended to read: 
   25540.1.  The  commission   board  shall
determine, within 30 days after the receipt of a notice or
application for a geothermal powerplant, whether the notice or
application is complete. If the notice or application is determined
not to be complete, the  commission's   board's
 determination shall specify, in writing, those parts of the
notice or application which 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 
 board  the additional information requested by the 
commission   board  to make the notice or
application complete, the  commission   board
 shall determine whether the subsequent filing is sufficient to
complete the notice or application. A notice or application shall be
deemed filed for purposes of Section 25540 on the date the 
commission   board  determines the notice or
application is completed if the  commission  
board  has adopted regulations specifying the informational
requirements for a complete notice or application, but if the
 commission   board  has not adopted
regulations, the notice or application shall be deemed filed on the
last date the  commission   board  receives
any additional data that completes the notice or application. 
  SEC. 267.    Section 25540.2 of the Public Resources Code
is amended to read: 
   25540.2.  Notwithstanding any other provision of law  :
  ,  
   (a) If an applicant proposes to construct a geothermal powerplant
at a site which, at the outset of the proceeding, the applicant can
reasonably demonstrate to be capable of providing geothermal
resources in commercial quantities, no notice of intention pursuant
to Section 25502 shall be required, and the commission shall issue
the final decision on the application, as specified in Section 25523,
within 12 months after acceptance of the application for
certification of a geothermal powerplant and related facilities, or
at such later time as is mutually agreed by the commission and the
applicant.  
   (b) Upon 
    upon  receipt of an application for certification of a
geothermal powerplant and related facilities, the  commission
  department  shall transmit a copy of the
application to every state and local agency having jurisdiction over
land use in the area involved. 
  SEC. 268.    Section 25540.3 of the Public Resources Code
is amended to read: 
   25540.3.  (a) An applicant for a geothermal powerplant may propose
a site to be approved that will accommodate a potential maximum
electric generating capacity in excess of the capacity being proposed
for initial construction. In addition to the information concerning
the initial powerplant and related facilities proposed for
construction required pursuant to Section 25520,  such
  the  application shall include all of the
following, to the extent known:
   (1) The number, type, and energy source of electric generating
units  which   that  the site is proposed
ultimately to accommodate and the maximum generating capacity for
each unit.
   (2) The projected installation schedule for each unit.
   (3) The impact of the site, when fully developed, on the
environment and public health and safety.
   (4) The amount and sources of cooling water needed at the fully
developed site.
   (5) The general location and design of auxiliary facilities
planned for each stage of development, including, but not limited to
pipelines, transmission lines, waste storage and disposal facilites,
switchyards, and cooling ponds, lakes, or towers.
   (6)  Such other   Other   
information relating to the design, operation, and siting of the
facility  as   that  the 
commission   board  may by regulation require.
   (b)  (1)    If an application is filed pursuant
to subdivision (a)  which   that  proposes
a site to be approved  which   that  will
accommodate a potential maximum electric generating capacity in
excess of the capacity being proposed for initial construction, the
 commission   board  may, in its decision
pursuant to subdivision (a) of Section 25540.3, either certify only
the initial facility or facilities proposed for initial construction
or may certify the initial facility or facilities and find the site
acceptable for additional generating capacity of the type tentatively
proposed. The maximum allowable amount and type of such additional
capacity shall be determined by the  commission 
 board  . 
   If 
    (2)     If  the decision includes a
finding that a particular site is suitable to accommodate a
particular additional generating capacity, the site shall be
designated a potential multiple facility site. The 
commission   board  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. 269.    Section 25540.4 of the Public Resources Code
is repealed.  
   25540.4.  Notwithstanding any other provision of law:
   (a) The decision of the commission on an application for an
additional facility at a potential multiple facility site shall be
issued within three months after the acceptance of the application or
at such later time as is mutually agreed upon by the commission and
the applicant.
   (b) In reviewing an application for an additional facility at a
potential multiple facility site, the commission may, upon a showing
of good cause, undertake a reconsideration of its prior
determinations in the final report for the site pursuant to Section
25514 or its decision pursuant to Section 25523 based on current
conditions and other reasonable alternatives to the proposed
facility. Such reconsideration must be completed within seven months
after acceptance of such application for an additional facility.
   (c) The commission shall, pursuant to Section 21100.2, provide by
resolution or order for completing and certifying the environmental
impact report within the time limits established by subdivisions (a)
and (b).  
  SEC. 270.    Section 25540.5 of the Public Resources Code
is amended to read: 
   25540.5.  The  commission   board  may,
at the petition of a county which   that 
has adopted a geothermal element for its general plan, approve an
equivalent certification program  which   that
 delegates to that county full authority for the certification
of all geothermal powerplants within  such  that
 county. Once approved by the  commission 
 board  , the equivalent certification program shall replace
and supersede the procedures for certification of all geothermal
powerplants and related facilities, pursuant to Sections 25540 to
25540.4, inclusive, to be located within  such  
that  county. The  commission   board
 may, after public hearings, revoke the approved equivalent
certification program of  such   the 
county if the  commission   board  finds
that the program does not comply with current  commission
  board  certification requirements. The equivalent
certification program shall include, but not be limited to,
provisions for all of the following:
   (a) Certification of geothermal areas as potential multiple
facility sites, if so applied for.
   (b) Processing of applications in less than 12 months.
   (c) Periodic review and updating of the program by the county as
may be required by law and the  commission 
board  .
   (d) Appeal procedures, including appeals to the 
commission   board  on substantive issues. In any
such appeal on a substantive issue, the  commission 
 board  shall determine whether the act or decision is
supported by substantial evidence in the light of the whole record.
The  commission   board  shall determine,
within 15 days of receipt of an appeal, whether the appeal has merit
and whether action should be taken.
   (e) Input and review by other relevant public agencies and members
of the public.
   (f) Public hearing procedures equivalent to those specified in
Article 6 (commencing with Section 65350) of Chapter 3 of Title 7 of
the Government Code. 
  SEC. 271.    Section 25540.6 of the Public Resources Code
is repealed.  
   25540.6.  (a) Notwithstanding any other provision of law, no
notice of intention is required, and the commission shall issue its
final decision on the application, as specified in Section 25523,
within 12 months after the filing of the application for
certification of the powerplant and related facility or facilities,
or at any later time as is mutually agreed by the commission and the
applicant, for any of the following:
   (1) A thermal powerplant which will employ cogeneration
technology, a thermal powerplant that will employ natural gas-fired
technology, or a solar thermal powerplant.
   (2) A modification of an existing facility.
   (3) A thermal powerplant which it is only technologically or
economically feasible to site at or near the energy source.
   (4) A thermal powerplant with a generating capacity of up to 100
megawatts.
   (5) A thermal powerplant designed to develop or demonstrate
technologies which have not previously been built or operated on a
commercial scale. Such a research, development, or commercial
demonstration project may include, but is not limited to, the use of
renewable or alternative fuels, improvements in energy conversion
efficiency, or the use of advanced pollution control systems. Such a
facility may not exceed 300 megawatts unless the commission, by
regulation, authorizes a greater capacity. Section 25524 does not
apply to such a powerplant and related facility or facilities.
   (b) Projects exempted from the notice of intention requirement
pursuant to paragraph (1), (4), or (5) of subdivision (a) shall
include, in the application for certification, a discussion of the
applicant's site selection criteria, any alternative sites that the
applicant                                                considered
for the project, and the reasons why the applicant chose the proposed
site. That discussion shall not be required for cogeneration
projects at existing industrial sites. The commission may also accept
an application for a noncogeneration project at an existing
industrial site without requiring a discussion of site alternatives
if the commission finds that the project has a strong relationship to
the existing industrial site and that it is therefore reasonable not
to analyze alternative sites for the project.  
  SEC. 272.    Section 25541 of the Public Resources Code is
amended to read: 
   25541.  The  commission   board  may
exempt from this chapter thermal powerplants with a generating
capacity of up to 100 megawatts and modifications to existing
generating facilities that do not add capacity in excess of 100
megawatts, if the  commission   board 
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. 273.    Section 25541.1 of the Public Resources Code
is amended to read: 
   25541.1.  It is the intent of the Legislature to encourage the
development of  thermal  powerplants using resource
recovery (waste-to-energy) technology. Previously enacted incentives
for the production of electrical energy from nonfossil fuels in
commercially scaled projects have failed to produce the desired
results. At the same time, the state faces a growing problem in the
environmentally safe disposal of its solid waste. The creation of
electricity by a  thermal  powerplant using resource
recovery technology addresses both problems by doing all of the
following:
   (a) Generating electricity from a nonfossil fuel of an ample,
growing supply.
   (b) Conserving landfill space, thus reducing waste disposal costs.

   (c) Avoiding the health hazards of burying garbage.
   Furthermore, development of resource recovery facilities creates
new construction jobs, as well as ongoing operating jobs, in the
communities in which they are located. 
  SEC. 274.    Section 25541.5 of the Public Resources Code
is amended to read: 
   25541.5.  (a) On or before January 1, 2001, the Secretary of the
 Natural  Resources Agency shall review the regulatory
program conducted pursuant to this chapter that was certified
pursuant to subdivision  (k)   (j)  of
Section 15251 of Title 14 of the California Code of Regulations, to
determine whether the regulatory program meets the criteria specified
in Section 21080.5. If the Secretary of the  Natural 
Resources Agency determines that the regulatory program meets those
criteria,  the secretary   he or she  shall
continue the certification of the regulatory program.
   (b) If the Secretary of the  Natural  Resources Agency
continues the certification of the regulatory program, the 
commission   board  shall amend the regulatory
program from time to time, as necessary to permit the 
secretary   Secretary of the Natural Resources Agency
 to continue to certify the program.
   (c) This section does not invalidate the certification of the
regulatory program, as it existed on January 1, 2000, pending the
review required by subdivision (a). 
  SEC. 275.    Section 25542 of the Public Resources Code is
amended to read: 
   25542.  In the case of any site and related facility or facilities
for which the provisions of this division do not apply, the
exclusive power given to the  commission   board
 pursuant to Section 25500 to certify sites and related
facilities shall not be in effect. 
  SEC. 276.    Section 25543 of the Public Resources Code is
amended to read: 
   25543.  (a) It is the intent of the Legislature to improve the
process of siting and licensing new thermal electric powerplants to
ensure that these facilities can be sited in a timely manner, while
protecting environmental quality and public participation in the
siting process.
   (b)  Notwithstanding Section 7550.5 of the Government
Code, the commission   The board  shall prepare a
report to the Governor and the Legislature on or before March 31,
2000, that identifies administrative and statutory measures that,
preserving environmental protections and public participation, would
improve the  commission's   board's  siting
and licensing process for thermal powerplants of 50 megawatts and
larger. The report shall include, but is not limited to, all of the
following:
   (1) An examination of potential process efficiencies associated
with required hearings, site visits, and documents.
   (2) A review of the impacts on both process efficiency and public
participation of restrictions on communications between applicants,
the public, and staff or decisionmakers.
   (3) An assessment of means for improving coordination with the
licensing activities of local jurisdictions and participation by
other state agencies.
   (4) An assessment of organizational structure issues including the
adequacy of the amounts and organization of current technical and
legal resources.
   (5) Recommendations for administrative and statutory measures to
improve the siting and licensing process.
   (c) The  commission   board  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. 277.    Section 25544 is added to the Public
Resources Code, to read:
   25544.  (a) After one or more public hearings, the department may
recommend, and the commission may designate, preferred areas for
renewable energy generation 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 renewable energy generation projects.
   (b) Designation of an area under this section shall serve to
identify a feasible region where one or more future renewable energy
generation facilities can be built that are consistent with the state'
s needs and objectives as set forth in Article 16 (commencing with
Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code.
   (c) The department shall rank the renewable energy designation
areas based on the following criteria:
   (1) The least impact at the site when fully developed on the
environment and public health and safety.
   (2) Total capacity of generation projects that are in the
Independent System Operator generation queue for each of the remote
energy generation parks.
   (3) Fuel diversity.
   (4) Distance to the nearest possible Independent System Operator
transmission bulk facility.
   (5) Potential viable transmission route.
   (6) Order of magnitude of transmission cost per megawatt for the
designated remote energy generation parks to deliver renewable energy
to the load centers.
   (7) Realistic commercial operating dates for location-constrained
projects and the transmission interconnection facilities.
   (8) Potential impact on the transmission access charge.
   (9) Potential operational, congestion, and reliability benefits of
the facility.
   (10) Stranded cost risk and potential impact.
   (11) Alternative means of transmission access from the renewable
energy designation area to the electrical transmission grid operated
by the Independent System Operator.
   (d) The department 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.
   (e) For the purposes of this section, "renewable" has the same
meaning as set forth in Section 25741.  
  SEC. 278.    Section 25545 is added to the Public
Resources Code, to read:
   25545.  (a) Notwithstanding subdivision (a) of Section 25522, the
department shall establish a process to issue the board'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 renewable energy powerplant that is constructed within an
area designated by the board as a preferred area for renewable energy
development in the Desert Renewable Energy Conservation Plan
prepared pursuant to the Governor's Executive Order S-14-08.
   (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
renewable energy designation 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 board 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. 279.    Section 25601 of the Public Resources Code is
amended to read: 
   25601.  The  commission   department 
shall develop and coordinate a program of research and development in
energy supply, consumption, and conservation and the technology of
siting facilities and shall give priority to those forms of research
and development  which   that  are of
particular importance to the state, including, but not limited to,
all of the following:
   (a) Methods of energy conservation specified in Chapter 5
(commencing with Section 25400).
   (b) Increased energy use efficiencies of existing thermal electric
and hydroelectric powerplants and increased energy efficiencies in
designs of thermal electric and hydroelectric powerplants.
   (c) Expansion and accelerated development of alternative sources
of energy, including geothermal and solar resources, including, but
not limited to, participation in large-scale demonstrations of
alternative energy systems sited in California in cooperation with
federal agencies, regional compacts, other state governments, and
other participants. For purposes of this subdivision, "participation"
shall be defined as any of the following: (1) direct interest in a
project, (2) research and development to  insure 
 ensure  acceptable resolution of  environment
  environmental,  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
  ensure  the widespread utilization of
economically useful alternative energy systems. Large-scale
demonstrations of alternative energy systems are exemplified by the
100KW e to 100MW e range demonstrations of solar, wind, and
geothermal systems contemplated by federal agencies, regional
compacts, other state governments, and other participants.
   (d) Improved methods of construction, design, and operation of
facilities to protect against seismic hazards.
   (e) Improved methods of energy-demand forecasting.
   (f) To accomplish the purposes of subdivision (c), an amount not
more than one-half of the total state funds appropriated for the
solar energy research and development program as proposed in the
budget  prepared pursuant to Section 25604  shall be
allocated for large-scale demonstration of alternative energy
systems. 
  SEC. 280.    Section 25602 of the Public Resources Code is
amended to read: 
   25602.  The  commission   department 
shall carry out technical assessment studies on all forms of energy
and energy-related problems, in order to influence federal research
and development priorities and to be informed on future energy
options and their impacts, including, in addition to those problems
specified in Section 25601, but not limited to, the following:
   (a) Advanced nuclear powerplant concepts, fusion, and fuel cells.
   (b) Total energy concepts.
   (c) New technology related to coastal and offshore siting of
facilities.
   (d) Expanded use of wastewater as cooling water and other advances
in powerplant cooling.
   (e) Improved methods of power transmission to permit interstate
and interregional transfer and exchange of bulk electric power.
   (f) Measures to reduce wasteful and inefficient uses of energy.
   (g) Shifts in transportation modes and changes in transportation
technology in relation to implications for energy consumption.
   (h) Methods of recycling, extraction, processing, fabricating,
handling, or disposing of materials, especially materials which
require large commitments of energy.
   (i) Expanded recycling of materials and its effect on energy
consumption.
   (j) Implications of government subsidies and taxation and
ratesetting policies.
   (k) Utilization of waste heat.
   (l) Use of hydrogen as an energy form.
   (m) Use of agricultural products, municipal wastes, and organic
refuse as an energy source. 
   Such 
    These  assessments may also be conducted in order to
determine which energy systems among competing technologies are most
compatible with standards established pursuant to this division. 

  SEC. 281.    Section 25603 of the Public Resources Code is
amended to read: 
   25603.  For research purposes, the  commission 
 department  shall, in cooperation with other state
agencies, participate in the design, construction, and operation of
energy-conserving buildings using data developed pursuant to Section
25401, in order to demonstrate the economic and technical feasibility
of  such   those  designs. 
  SEC. 282.    Section 25603.5 of the Public Resources Code
is repealed.  
   25603.5.  (a) Pursuant to the duties of the commission described
in subdivision (a) of Section 25401 and Section 25603, the commission
shall conduct a statewide architectural design competition to select
outstanding designs for new single-family and multifamily
residential units which incorporate passive solar and other
energy-conserving design features.
   The purpose of the competition, to be known as the "State Solar
Medallion Passive Design Competition", is to demonstrate the
technical and economic feasibility of passive solar design for
residential construction, to speed its commercialization, and to
promote its use by developers in housing for moderate-income families
in the state. The competition shall be carried out with the
assistance and cooperation of the Office of the State Architect.
   (b) The competition shall be conducted for each of the state's six
regional climate zones. Each climate zone shall have the following
four categories of competition:
   (1) Single-family dwellings. The construction costs of these
dwellings shall not exceed thirty-five thousand dollars ($35,000) and
the market price, inclusive of land, construction, permits, fees,
overhead and profit shall not exceed fifty-five thousand dollars
($55,000); provided that, if the commission determines that, as of
the date construction is completed, the cost of housing construction
in this state has increased due to economic inflation since January
1, 1979, the commission may increase these sums by the amount of such
inflation as indicated by the construction cost index.
   (2) Single-family dwellings. The construction costs of these
dwellings shall not exceed fifty-five thousand dollars ($55,000) and
the market price, inclusive of land, construction, permits, fees,
overhead and profit shall not exceed eighty-five thousand dollars
($85,000); provided that, if the commission determines that, as of
the date construction is completed, the cost of housing construction
in this state has increased due to economic inflation since January
1, 1979, the commission may increase these sums by the amount of such
inflation as indicated by the construction cost index.
   (3) Multifamily housing units with a market price or rental value
comparable to paragraph (1) of this subdivision.
   (4) Multifamily housing units with a market price or rental value
comparable to paragraph (2) of this subdivision.
   (c) In order to qualify for the competition, entrants shall be a
team composed of at least one member from each of the following
categories:
   (1) A building designer or architect.
   (2) A builder, developer, or contractor.
   (d) With submission of designs to the competition, all entrants
shall agree to comply with the following provisions, if awarded the
Solar Medallion or the first place prize in any category:
   (1) To build five models of the winning design for single-family
home categories if the builder, developer, or contractor member of
the winning team constructed more than 30 single-family detached
units during the one-year period ending on the date of the award, or
   (2) To build three models of the winning design for single-family
home categories if the builder, developer, or contractor member of
the winning team constructed 30 or fewer single-family detached units
during the one-year period ending on the date of the award, or
   (3) To build one model of the winning design for all multifamily
categories.
   (4) To commence construction within 18 months of the announcement
of awards.
   (5) To permit the commission to install monitoring equipment for
measuring energy conservation performance of the structure on all
models constructed in compliance with paragraphs (1), (2), and (3) of
this subdivision.
   (6) To permit the commission to document, exhibit, and publicize
the constructed designs.
   All models of winning designs shall be built on the site or sites
described in the submission or on an alternate site or sites with
comparable features.
   Cash awards to authors of the winning designs may be made prior to
commencement of the agreed upon construction.
   All winning designs in the competition shall become the property
of the state and may be published and exhibited by the state after
completion of competition.
   (e) The judging panel for the competition shall consist of the
following five jurors:
   (1) One representative of the Office of the State Architect.
   (2) One representative of the commission.
   (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.
   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.
   The cost index shall be prepared by the Office of the State
Architect and shall be published in the competition program.
   The evaluation shall take place in two stages, with an initial
technical review by the commission 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.
   Designs submitted to the competition shall be judged on the extent
to which they satisfy the following criteria:
   (1) Use of passive solar and other energy conserving design
features.
   (2) Amount of energy savings achieved by the design.
   (3) Adaptability of the design to widespread use.
   (f) The commission 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.
   In administering the competition, the commission shall accomplish
the following tasks:
   (1) Preparation of a competition program, including climatological
data for each of the six regional climate zones.
   (2) Distribution of competition information and ongoing publicity.

   (3) Development of rules and procedures for competitors and
judges.
   (4) Preparation of a summary document for the competition,
including a portfolio of winning designs and followup publicity.
   (5) Instrumentation of winning dwellings constructed in accordance
with requirements of this section; instrumentation for measurement
of energy conservation performance of the units and ongoing data
collection shall be provided by the commission pursuant to Section
25607.
   For purposes of administering the competition, the commission
shall contract with the Office of the State Architect for materials
and services that cannot be performed by its staff.
   (g) Cash awards to authors of the winning designs shall be made on
the following basis:
   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. 283.    Section 25605 of the Public Resources Code is
amended to read: 
   25605.  On or before November 1, 1978, the  commission
  department, with the approval by the board, 
shall develop and adopt, in cooperation with affected industry and
consumer representatives, and after one or more public hearings,
regulations governing solar devices. The regulations shall be
designed to encourage the development and use of solar energy and to
provide maximum information to the public concerning solar devices.
The regulations may include, but need not be limited to, any or all
of the following:
                                                  (a) Standards for
testing, inspection, certification, sizing, and installation of solar
devices.
   (b) Provisions for the enforcement of the standards.  Such
  These  provisions may include any or all of the
following:
   (1) Procedures for the accreditation by the  commission
  department  of laboratories to test and certify
solar devices.
   (2) Requirements for onsite inspection of solar devices, including
specifying methods for inspection, to determine compliance or
noncompliance with the standards.
   (3) Requirements for submission to the  commission
  department  of any data resulting from the
testing and inspection of solar devices.
   (4) Prohibitions on the sale of solar devices  which
  that  do not meet minimum requirements for safety
and durability as established by the  commission 
 board  .
   (5) Dissemination of the results of the testing, inspection, and
certification program to the public.
   (c) In adopting the regulations, the  commission 
 department  shall give due consideration to their effect
on the cost of purchasing, installing, operating and maintaining
solar devices. The  commission   department
 shall reassess the regulations as often as it deems necessary,
based upon the value of the regulations in terms of benefits and
disadvantages to the widespread adoption of solar energy systems and
the need to encourage creativity and innovative adaptations of solar
energy. The  commission   department  may
amend or repeal these regulations based on such reassessment.
   (d) Under no circumstances may the  commission 
 department or the board  preclude any person from
developing, installing, or operating a solar device on his or her own
property.
   (e) Any violation of any regulation adopted by the 
commission   board  pursuant to this section may be
enjoined in the same manner as is prescribed in Chapter 10
(commencing with Section 25900) of this division for enjoining a
violation of this division. 
  SEC. 284.    Section 25605.5 of the Public Resources Code
is amended to read: 
   25605.5.  Standards adopted by the  commission 
 board  pursuant to Section 25605, which are building
standards as defined in Section 25488.5, shall be submitted to the
State Building Standards Commission for approval pursuant to, and are
governed by, the State Building Standards Law (Part 2.5 (commencing
with Section 18901) of Division 13 of the Health and Safety Code).
Building standards adopted by the  commission  
board  and published in the State Building Standards Code shall
comply with, and be enforced as provided in, Section 25605. 
  SEC. 285.    Section 25608 of the Public Resources Code is
amended to read: 
   25608.  The  commission   department 
shall confer with officials of federal agencies, including the
National Aeronautics and Space Administration, the National Institute
of Standards and Technology, the Department of Energy, and the
Department of Housing and Urban Development, to coordinate the
adoption of regulations pursuant to Sections 25603 and 25605. 
  SEC. 286.   Section 25609 of the Public Resources Code is
amended to read: 
   25609.  The  commission   board  may, in
adopting regulations pursuant to this chapter, specify the date when
the regulations shall take effect. The  commission 
 board  may specify different dates for different
regulations. 
  SEC. 287.    Section 25609.5 of the Public Resources Code
is amended to read: 
   25609.5.  The effective dates of building standards adopted by the
 commission   board  pursuant to Section
25609 are subject to approval pursuant to the provisions of the State
Building Standards Law, Part 2.5 (commencing with Section 18901) of
Part 13 of the Health and Safety Code. 
  SEC. 288.    Section 25610 of the Public Resources Code is
amended to read: 
   25610.  For purposes of carrying out the provisions of this
chapter, the  commission   department  may
contract with any person for materials and services that cannot be
performed by its staff or other state agencies, and may apply for
federal grants or any other funding. 
  SEC. 289.    Section 25616 of the Public Resources Code is
amended to read: 
   25616.  (a) It is the intent of the Legislature to encourage local
agencies to expeditiously review permit applications to site energy
projects, and to encourage energy project developers to consider all
cost-effective and environmentally superior alternatives that achieve
their project objectives.
   (b) Subject to the availability of funds appropriated therefor,
the  commission   department  shall provide
technical assistance and grants-in-aid to assist local agencies to
do either or both of the following:
   (1) Site energy production or transmission projects  which
  that  are not otherwise subject to  the
provisions of  Chapter 6 (commencing with Section 25500).
   (2) Integrate into their planning processes, and incorporate into
their general plans, methods to achieve cost-effective energy
efficiency.
   (c) The  commission   department  shall
provide assistance at the request of local agencies  and
shall coordinate that assistance with the assistance provided by the
Department of Permit Assistance, created pursuant to Section 15399.50
of the Government Code  .
   (d) As used in this section, an energy project is any project
designed to produce, convert, or transmit energy as one of its
primary functions. 
  SEC. 290.    Section 25617 of the Public Resources Code is
amended to read: 
   25617.  (a) It is the intent of the Legislature to preserve
diversity of energy resources, including diversity of resources used
in electric generation facilities, industrial and commercial
applications, and transportation.
   (b) The  commission   department  shall,
within the limits of available funds, provide technical assistance
and support for the development of petroleum diesel fuels 
which   that  are as clean or cleaner than
alternative clean fuels and clean diesel engines. That technical
assistance and support may include the creation of research,
development, and demonstration programs. 
  SEC. 291.    Section 25618 of the Public Resources Code is
amended to read: 
   25618.  (a) The  commission   department
 shall facilitate development and commercialization of ultra
low- and zero-emission electric vehicles and advanced battery
technologies, as well as development of an infrastructure to support
maintenance and fueling of those vehicles in California. Facilitating
commercialization of ultra low- and zero-emission electric vehicles
in California shall include, but not be limited to, the following:
   (1) The  commission   department  may,
in cooperation with county, regional, and city governments, the state'
s public and private utilities, and the private business sector,
develop plans for accelerating the introduction and use of ultra low-
and zero-emission electric vehicles throughout California's air
quality nonattainment areas, and for accelerating the development and
implementation of the necessary infrastructure to support the
planned use of those vehicles in California. These plans shall be
consistent with, but not limited to, the criteria for similar efforts
contained in federal loan, grant, or matching fund projects.
   (2) In coordination with other state agencies, the 
commission   department  shall seek to maximize the
state's use of federal programs, loans, and matching funds available
to states for ultra low- and zero-emission electric vehicle
development and demonstration programs, and infrastructure
development projects.
   (b) Priority for implementing demonstration projects under this
section shall be directed toward those areas of the state currently
in a nonattainment status with federal and state air quality
regulations. 
  SEC. 292.    Section 25630 of the Public Resources Code is
amended to read: 
   25630.  (a) The  commission   department
 shall establish a small business energy assistance low-interest
revolving loan program to fund the purchase of equipment for
alternative technology energy projects for California's small
businesses.
   (b) Loan repayments, interest, and royalties shall be deposited in
the Energy Technologies Research, Development, and Demonstration
Account. The interest rate shall be based on surveys of existing
financial markets and at rates not lower than the Pooled Money
Investment Account. 
  SEC. 293.    Section 25650 of the Public Resources Code is
amended to read: 
   25650.  (a) All funds from loan repayments and interest that
become due and payable for loans made by the  commission
  department  pursuant to an agriculture energy
assistance program shall be deposited in the Energy Technologies
Research, Development, and Demonstration Account, and shall be
available for loans and technical assistance pursuant to this
section, upon appropriation in the Budget Act. Up to 20 percent of
the annual appropriation may be available for technical assistance.
   (b) Loans made pursuant to this section shall be for the purchase
of equipment and services for agriculture energy efficiency and
development demonstration projects, including, but not limited to,
production of methane or ethanol, use of wind, photovoltaics, and
other sources of energy for irrigation pumping, application of load
management conservation techniques, improvements in water pumping and
pressurization techniques, and conservation tillage techniques.
   (c) The loans shall contain terms that provide for a repayment
period of not more than seven years and for interest at a rate that
is not less than 2 percent below the rate earned by moneys in the
Pooled Money Investment Account. 
  SEC. 294.    Section 25678 of the Public Resources Code is
amended to read: 
   25678.  The  commission   department, by
action of the board,  shall establish a grant program which
provides a forty cent ($0.40) per gallon production incentive for
liquid fuels fermented in this state from biomass and biomass-derived
resources produced in this state. Eligible liquid fuels include, but
are not limited to, ethanol, methanol, and vegetable oils. Eligible
biomass resources include, but are not limited to, agricultural
products and byproducts, forestry products and byproducts, and
industrial wastes. The  commission   board 
shall adopt rules and regulations necessary to implement the
program. Prior to determining an applicant eligible for participation
in the production incentive program, the  commission
  board  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. 295.    Section 25679 of the Public Resources Code is
amended to read: 
   25679.  Applicants for a grant under this chapter shall submit an
application on a form prescribed by the  commission which
  department that  is responsible for
administration of the program. 
  SEC. 296.    Section 25696 of the Public Resources Code is
amended to read: 
   25696.  The  commission   department 
may assist California-based energy technology and energy conservation
firms to export their technologies, products, and services to
international markets.
   The  commission   department  may do all
of the following:
   (a) Conduct a technical assistance program to help California
energy companies improve export opportunities and enhance foreign
buyers' awareness of and access to energy technologies and services
offered by California-based companies. Technical assistance
activities may include, but are not limited to, an energy technology
export information clearinghouse, a referral service, a trade lead
service consulting services for financing, market evaluation, and
legal counseling, and information seminars.
   (b) Perform research studies and solicit technical advice to
identify international market opportunities.
   (c) Assist California energy companies to evaluate project or
site-specific energy needs of international markets.
   (d) Assist California energy companies to identify and address
international trade barriers restricting energy technology exports,
including unfair trade practices and discriminatory trade laws.
   (e) Develop promotional materials in conjunction with California
energy companies to expand energy technology exports.
   (f) Establish technical exchange programs to increase foreign
buyers' awareness of suitable energy technology uses.
   (g) Prepare equipment performance information to enhance potential
export opportunities.
   (h) Coordinate activities with state, federal, and international
donor agencies to take advantage of trade promotion and financial
assistance efforts offered. 
  SEC. 297.    Section 25696.5 of the Public Resources Code
is amended to read: 
   25696.5.  (a) Every California-based energy technology and energy
conservation firm awarded direct financial assistance pursuant to
Section 25696 shall reimburse the  commission  
department  for that assistance, when both of the following
conditions have been met:
   (1) The assistance was substantial and essential for the
completion of a specific identifiable project.
   (2) The resulting project is producing revenues.
   (b) All moneys appropriated for purposes of this chapter and all
moneys received by the  commission   department
 as reimbursement under this section shall be deposited in the
Energy Resources Programs Account and shall be available, when
appropriated by the Legislature, for the purposes of this chapter.

  SEC. 298.    Section 25697 of the Public Resources Code is
amended to read: 
   25697.  The  commission   department 
shall consult with the California State World Trade Commission with
respect to conducting overseas trade missions, trade shows, and trade
exhibits. Consultation may include interagency agreements,
cosponsorship, and memoranda of understanding for joint overseas
trade activities. 
  SEC. 299.    Section 25700 of the Public Resources Code is
amended to read: 
   25700.  The  commission   department 
shall, in accordance with the provisions of this chapter, develop
contingency plans to deal with possible shortages of electrical
energy or fuel supplies to protect public health, safety, and
welfare. 
  SEC. 300.    Section 25701 of the Public Resources Code is
amended to read: 
   25701.  (a) Within six months after the effective date of this
division, each electric utility, gas utility, and fuel wholesaler or
manufacturer in the state shall prepare and submit to the 
commission   department  a proposed emergency load
curtailment plan or emergency energy supply distribution plan setting
forth proposals for identifying priority loads or users in the event
of a sudden and serious shortage of fuels or interruption in the
generation of electricity.
   (b) The  commission   department  shall
encourage electric utilities to cooperate in joint preparation of an
emergency load curtailment plan or emergency energy  supply 
distribution plan. If  such a   this 
cooperative plan is developed between two or more electric utilities,
 such   the  utilities may submit 
such   the  joint plans to the  commission
  department  in place of individual plans required
by subdivision (a) of this section.
   (c) The  commission   department  shall
collect from all relevant governmental agencies, including, but not
limited to, the Public Utilities Commission and the Office of
Emergency Services, any existing contingency plans for dealing with
sudden energy shortages or information related thereto. 
  SEC. 301.    Section 25702 of the Public Resources Code is
amended to read: 
   25702.  The  commission   department 
shall, after one or more public hearings, review the emergency load
curtailment program plans or emergency energy supply distribution
plans submitted pursuant to Section 25701, and,  within one
year after the effective date of this division   on or
before January 6, 1975  , the  commission  
department  shall approve and recommend to the Governor and the
Legislature plans for emergency load curtailment and energy supply
distribution in the event of a sudden energy shortage.  Such
  Those  plans shall be based upon the plans
presented by the electric utilities, gas utilities, and fuel
wholesalers or manufacturers, information provided by other
governmental agencies, independent analysis and study by the 
commission   department  and information provided
at the hearing or hearings.  Such   Those 
plans shall provide for the provision of essential services, the
protection of public health, safety, and welfare, and the maintenance
of a sound basic state economy. Provision shall be made in such
plans to eliminate wasteful, uneconomic, and unnecessary uses of
energy in times of shortages and to differentiate curtailment of
energy consumption by users on the basis of ability to accommodate
such curtailments.  Such   Those  plans
shall also specify the authority of and recommend the appropriate
actions of state and local governmental agencies in dealing with
energy shortages. 
  SEC. 302.    Section 25703 of the Public Resources Code is
amended to read: 
   25703.  Within four months after the date of certification of any
new facility, the  commission   department 
shall review and revise the recommended plans based on additional
new capacity attributed to  any such   that
 facility. The  commission   department
 shall, after one or more public hearings, review the plans at
least every five years from the approval of the initial plan as
specified in Section 25702. 
  SEC. 303.    Section 25704 of the Public Resources Code is
amended to read: 
   25704.  The  commission   department 
shall carry out studies to determine if potential serious shortages
of electrical, natural gas, or other sources of energy are likely to
occur and shall make recommendations to the Governor and the
Legislature concerning administrative and legislative actions
required to avert possible energy supply emergencies or serious fuel
shortages, including, but not limited to, energy conservation and
energy development measures, to grant authority to specific
governmental agencies or officers to take actions in the event of a
sudden energy shortage, and to clarify and coordinate existing
responsibilities for energy emergency actions. 
  SEC. 304.    Section 25705 of the Public Resources Code is
amended to read: 
   25705.   (a)    If the  commission
  department  determines that all reasonable
conservation, allocation, and service restriction measures may not
alleviate an energy supply emergency, and upon a declaration by the
Governor or by an act of the Legislature that a threat to public
health, safety, and welfare exists and requires immediate action, the
 commission   department  shall authorize
the construction and use of generating facilities under  such
 terms and conditions as specified by the 
commission   department  to protect the public
interest. 
   Within 
    (b)    Within  60 days after the
authorization of construction and use of  such  
the  generating facilities, the  commission 
 department  shall issue a report detailing the full nature,
extent, and estimated duration of the emergency situation and making
recommendations to the Governor and the Legislature for further
energy conservation and energy supply measures to alleviate the
emergency situation as alternatives to use of  such 
 the  generating facilities. 
  SEC. 305.    Section 25720 of the Public Resources Code is
amended to read: 
   25720.  (a) By January 31, 2002, the  commission 
 department  shall examine the feasibility, including
possible costs and benefits to consumers and impacts on fuel prices
for the general public, of operating a strategic fuel reserve to
insulate California consumers and businesses from substantial
short-term price increases arising from refinery outages and other
similar supply interruptions. In evaluating the potential operation
of a strategic fuel reserve, the  commission  
department  shall consult with other state agencies, including,
but not limited to, the State Air Resources Board.
   (b) The  commission   department  shall
examine and recommend an appropriate level of reserves of fuel, but
in no event may the reserve be less than the amount of refined fuel
that the commission   department  estimates
could be produced by the largest California refiner over a two week
period. In making this examination and recommendation, the 
commission   department  shall take into account
all of the following:
   (1) Inventories of California-quality fuels or fuel components
reasonably available to the California market.
   (2) Current and historic levels of inventory of fuels.
   (3) The availability and cost of storage of fuels.
   (4) The potential for future supply interruptions, price spikes,
and the costs thereof to California consumers and businesses.
   (c) The  commission   department  shall
evaluate a mechanism to release fuel from the reserve that permits
any customer to contract at any time for the delivery of fuel from
the reserve in exchange for an equal amount of fuel that meets
California specifications and is produced from a source outside of
California that the customer agrees to deliver back to the reserve
within a time period to be established by the  commission
  department  , but not longer than six weeks.
   (d) The  commission   department shall
evaluate reserve storage space from existing facilities.
   (e) The  commission   department  shall
evaluate a reserve operated by an independent operator that
specializes in purchasing and storing fuel, and is selected through
competitive bidding.
   (f) (1) Not later than January 31, 2002, the  commission
  department  and the State Air Resources Board, in
consultation with the other state and local agencies the 
commission   department  deems necessary, shall
develop and adopt recommendations for the Governor and Legislature on
a California Strategy to Reduce Petroleum Dependence.
   (2) The strategy shall include a base case forecast by the
 commission   department  of gasoline,
diesel, and petroleum consumption in years 2010 and 2020 based on
current best estimates of economic and population growth, petroleum
base fuel supply and availability, vehicle efficiency, and
utilization of alternative fuels and advanced transportation
technologies.
   (3) The strategy shall include recommended statewide goals for
reductions in the rate of growth of gasoline and diesel fuel
consumption and increased transportation energy efficiency and
utilization of nonpetroleum based fuels and advanced transportation
technologies, including alternative fueled vehicles, hybrid vehicles,
and high fuel efficiency vehicles.
   (g) The studies required by this section shall be conducted in
conjunction with any other studies required by acts enacted during
the 2000 portion of the 1999-2000 Regular Session dealing with
gasoline prices. 
  SEC. 306.    Section 25721 of the Public Resources Code is
amended to read: 
   25721.  The  commission  department 
shall report its findings and recommendations  for the purposes
of   Section   25720  to the Governor, the
Legislature, and the Attorney General by January 31, 2002. If the
 commission   department  finds that it
would be feasible to operate a strategic gas reserve to insulate
California consumers and businesses from substantial, short-term
price increases arising from refinery outages or other similar supply
interruptions, the  commission   department
 shall request specific statutory authority and funding for
establishment of a reserve. 
  SEC. 307.    Section 25722 of the Public Resources Code is
amended to read: 
   25722.  (a) On or before January 31, 2003, the  commission
  department  , the Department of General
Services, and the State Air Resources Board, in consultation with any
other state agency that the  commission 
department  , the  department   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  commission
  department  and the  department 
 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
 of the Public Resources Code  ).
   (7) The costs and benefits of purchasing high fuel efficiency
gasoline vehicles, including hybrid electric vehicles, instead of
flexible fuel vehicles.
   (d) On or before January 31, 2003, and annually thereafter, the
 commission   department  , the Department
of General Services, and the State Air Resources Board, in
consultation with any other state agency that the  commission
  department  , the  department 
 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. 308.    Section 25722.5 of the Public
Resources Code is amended to read: 
   25722.5.  (a) In order to achieve the policy objectives set forth
in Sections 25000.5 and 25722, the Department of General Services, in
consultation with the  commission   department
 and the State Air Resources Board, shall develop and adopt
specifications and standards for all passenger cars and light-duty
trucks that are purchased or leased on behalf of, or by, state
offices, agencies, and departments. An authorized emergency vehicle,
as defined in Section 165 of the Vehicle Code, that is equipped with
emergency lamps or lights described in Section 25252 of the Vehicle
Code is exempt from the requirements of this section. The
specifications and standards shall include the following:
   (1) Minimum air pollution emission specifications that meet or
exceed California's Ultra-Low Emission Vehicle II (ULEV II) standards
for exhaust emissions (13 Cal. Code Regs. 1961). These
specifications shall apply on January 1, 2006, for passenger cars and
on January 1, 2010, for light-duty trucks.
   (2) Notwithstanding any other provision of law, the utilization of
procurement policies that enable the Department of General Services
to do all of the following:
   (A) Evaluate and score emissions, fuel costs, and fuel economy in
addition to capital cost to enable the Department of General Services
to choose the vehicle with the lowest life-cycle cost when awarding
a state vehicle procurement contract.
   (B) Maximize the purchase or lease of hybrid or "Best in Class"
vehicles that are substantially more fuel efficient than the class
average.
   (C) Maximize the purchase or lease of available vehicles that meet
or exceed California's Super Ultra-Low Emission Vehicle (SULEV)
passenger car standards for exhaust emissions.
   (D) Maximize the purchase or lease of alternative fuel vehicles.
   (3) In order to discourage the unnecessary purchase or leasing of
a sport utility vehicle and a four-wheel drive truck, a requirement
that each state office, agency, or department seeking to purchase or
lease that vehicle, demonstrate to the satisfaction of the Director
of General Services or to the entity that purchases or leases
vehicles for that office, agency, or department, that the vehicle is
required to perform an essential function of the office, agency, or
department. If it is so demonstrated, priority consideration shall be
given to the purchase or lease of an alternative fuel or hybrid
sports utility vehicle or four-wheel drive vehicle.
   (b) The specifications and standards developed and adopted
pursuant to subdivision (a) do not apply upon the development and
implementation of the method, criteria, and procedure described in
Section 25722.6.
   (c) Each state office, agency, and department shall review its
vehicle fleet and, upon finding that it is fiscally prudent, cost
effective, or otherwise in the public interest to do so, shall
dispose of nonessential sport utility vehicles and four-wheel drive
trucks in its fleet and replace these vehicles with more
fuel-efficient passenger cars and trucks.
   (d) To the maximum extent practicable, each state office, agency,
and department that has bifuel natural gas, bifuel propane, and flex
fuel vehicles in its vehicle fleet shall use the respective
alternative fuel in those vehicles.
   (e) The Director of General Services shall compile annually and
maintain information on the nature of vehicles that are owned or
leased by the state, including, but not limited to, all of the
following:
   (1) The number of passenger-type motor vehicles purchased or
leased during the year, and the number owned or leased as of December
31 of each year.
   (2) The number of sport utility vehicles and four-wheel drive
trucks purchased or leased by the state during the year, and the
number owned or leased as of December 31 of each year.
   (3) The number of alternatively fueled vehicles and hybrid
vehicles purchased or leased by the state during the year, and the
total number owned or leased as of December 31 of each year and their
location.
   (4) The locations of the alternative fuel pumps available for
those vehicles.
   (5) The justification provided for all sport utility vehicles and
four-wheel drive trucks purchased or leased by the state and the
specific office, department, or agency responsible for the purchase
or lease.
   (6) The number of sport utility vehicles and four-wheel drive
trucks purchased or leased by the state during the year, and the
number owned or leased as of December 31 of each year that are
alternative fuel or hybrid vehicles.
   (7) The number of light-duty trucks disposed of under subdivision
(c).
   (8) The total dollars spent by the state on passenger-type vehicle
purchases and leases, categorized by sport utility vehicle and
nonsport utility vehicle, and within each of those categories, by
alternative fuel, hybrid ,  and other.
   (9) The total annual consumption of gasoline and diesel fuel used
by the state fleet.
   (10) The total annual consumption of alternative fuels.
   (11) On December 31, 2009, and annually thereafter, the Director
of General Services shall also compile the total annual vehicle miles
traveled by vehicles in the state fleet.
   (f) Each state office, agency, and department shall cooperate with
the Department of General Services' data requests in order that the
department may compile and maintain the information required in
subdivision (e).
   (g) As soon as practicable, but no later than 12 months after
receiving the data, the information compiled and maintained under
subdivision (e) and a list of those state offices, agencies, and
departments that are not in compliance with subdivision (f) shall be
made available to the public on the Department of General Services'
Internet Web site.
   (h) Beginning July 1, 2009, and every three years thereafter, the
Director of General Services shall report to the Legislature and the
Governor the information compiled and maintained pursuant to
subdivision (e).
   (i) Pursuant to Article IX of the California Constitution, this
section shall not apply to the University of California except to the
extent that the Regents of the University of California, by
appropriate resolution, make this section applicable. 
  SEC. 309.    Section 25722.6 of the Public Resources Code
is amended to read: 
   25722.6.  (a) On or before December 31, 2008, the Department of
General Services, in conjunction with the State Air Resources Board
and the  commission   department  , shall
amend the existing "Enhanced Efficiency Costing Methodology for
Passenger Cars and Light-Duty Vehicles" to rank the environmental and
energy benefits, and costs of motor vehicles for potential
procurement by state and local governments. The vehicle rankings
shall include both of the following criteria:
   (1) The reduction in greenhouse gas emissions, air pollutant
emissions, and petroleum use on a full fuel-cycle basis, to the
extent possible, based on existing data available to the State Air
Resources Board, the  commission   department
 , or other reliable sources, including the California Strategy
to Reduce Petroleum Dependence developed pursuant to subdivision (f)
of Section 25720 and the state plan to increase the use of
alternative transportation fuels developed pursuant to Section 43866
of the Health and Safety Code.
   (2) The life-cycle costs of the vehicle and fuel, including
maintenance.
   (b) On or before December 31, 2008, the Department of General
Services shall revise its procedures for the procurement of state and
local government vehicles based upon the necessary performance
specifications of the vehicles to perform the required work or tasks
of the vehicles in the fleet. The Department of General Services
shall establish vehicle "classes" depending upon the required work or
tasks and the necessary performance specifications.
   (c) On or before July 1, 2009, for the purpose of state fleet
procurement, both of the following shall apply:
   (1) Available vehicles in individual classes shall be ranked for
purchase or lease using the method and criteria developed in
subdivision (a).
   (2) (A) Vehicles shall be procured for use in the state fleet that
meet all requirements established by the federal government,
including, but not limited to, the federal Energy Policy Act of 1992,
Public Law 102-486, if applicable, and that have been ranked best in
their class as determined by the evaluation in subdivision (a).
   (B) If fueling infrastructure, for the fuel used to rank a vehicle
best in class, is not available, or planned to be available within
two years, the Department of General Services shall procure the
vehicle ranked next best in class for which fueling infrastructure is
or will be available.
   (d) The Department of General Services shall evaluate vehicles for
potential addition to the state and local fleets, as described in
this section, on an annual basis, reflecting annual new vehicle
availability.
   (e) A vehicle capable of using alternative fuels shall be operated
on those fuels to the maximum extent practicable unless alternative
fuels are not readily available or other factors exist that may
prevent the use of those fuels in the area in which the vehicle is
used.
   (f) The Department of General Services shall do both of the
following:
   (1) During the normal course of coordination and contracting with
nearby fueling stations, provide information related to the
alternative fuel vehicles in the state fleet and request the stations
to provide a fuel supply to meet that demand.
   (2) When replacing, retrofitting, or installing a fueling tank or
infrastructure at a facility that fuels state vehicles, the
Department of General Services shall consider requesting competitive
bids for alternative fuel infrastructure that would meet the needs of
vehicles used, or planned to be used, in that facility.
   (g) Authorized emergency vehicles as defined in Section 165 of the
Vehicle Code, that are equipped with emergency lamps or lights
described in Section 25252 of the Vehicle Code, are exempt from the
requirements of this section.
   (h) Each state office, agency, or department seeking to purchase
or lease a sport utility vehicle or four-wheel drive vehicle shall
demonstrate to the satisfaction of the Director of General Services
or the entity that purchases or leases vehicles 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.
   (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. 310.    Section 25722.7 of the Public Resources Code
is amended to read: 
   25722.7.  (a) In order to further achieve the policy objectives
set forth in Sections 25000.5, 25722, and 25722.5, on or before June
1, 2007, the Department of General Services in consultation with the
 State Energy Resources Conservation and Development
Commission   Department of Energy  shall establish
a minimum fuel economy standard that is above the standard, as it
exists on January 1, 2007, established pursuant to Section 3620.1 of
the State Administrative Manual, for the purchase of passenger
vehicles and light duty trucks for the state fleet that are powered
solely by internal combustion engines utilizing fossil fuels.
   (b) On or after January 1, 2008, all new state fleet purchases of
passenger vehicles and light duty trucks powered solely by internal
combustion engines utilizing fossil fuels, by the Department of
General Services and any other state entities shall meet the fuel
economy standard established under subdivision (a).
   (c) Authorized emergency vehicles, as defined in Section 165 of
the Vehicle Code, and vehicles identified in paragraph (3) of
subdivision (a) of Section 25722.5 are exempt from this section.
   (d) Vehicles purchased, that are modified for the following
purposes, are exempt from this section.
   (1) To provide services by a state entity to an individual with a
disability or a developmental disability, as defined under the
statutes or regulations governing that state entity.
   (2) As a reasonable accommodation for the known physical or mental
disability, as defined in Section 12926 of the Government Code, of
an employee.
   (e) For purposes of this section, "state entities" includes all
state departments, boards, commissions, programs, and other
organizational units of the executive, legislative, and judicial
branches of state government, the California Community Colleges, the
California State University, and the University of California.
   (f)  No provision of this   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 that provision
applicable. 
  SEC. 311.    Section 25723 of the Public Resources Code is
amended to read: 
   25723.  On or before January 31, 2003, the  commission
  department  , in consultation with any other
state agency that the  commission  department
 deems necessary, shall develop and adopt recommendations for
consideration by the Governor and the Legislature of a California
State Fuel-Efficient Tire Program. The  commission 
 department  shall make recommendations on all of the
following items:
   (a) Establishing a test procedure for measuring tire fuel
efficiency.
   (b) Development of a  data base   database
 of fuel efficiency of existing tires in order to establish an
accurate baseline of tire efficiency.
   (c) A rating system for tires that provides consumers with
information on the fuel efficiency of individual tire models.
   (d) A consumer-friendly system to disseminate tire fuel-efficiency
information as broadly as possible. The  commission
  department  shall consider labeling, 
Internet  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. 312.   Section 25740.5 of the Public Resources Code
is amended to read: 
   25740.5.  (a) The  commission   department,
by action of the board,  shall optimize public investment and
ensure that the most cost-effective and efficient investments in
renewable energy resources are vigorously pursued.
   (b) The  commission's   department's 
long-term goal shall be a fully competitive and self-sustaining
supply of electricity generated from renewable sources.
   (c) The program objective shall be to increase, in the near term,
the quantity of California's electricity generated by in-state
renewable electricity generation facilities, while protecting system
reliability, fostering resource diversity, and obtaining the greatest
environmental benefits for California residents.
   (d) An additional objective of the program shall be to identify
and support emerging renewable technologies in distributed generation
applications that have the greatest near-term commercial promise and
that merit targeted assistance.
   (e) The Legislature recommends allocations among all of the
following:
   (1) Rebates, buydowns, or equivalent incentives for emerging
renewable technologies.
   (2) Customer education.
   (3) Production incentives for reducing fuel costs, that are
confirmed to the satisfaction of the  commission 
 department  , at solid fuel biomass energy facilities in
order to provide demonstrable environmental and public benefits,
including improved air quality.
   (4) Solar thermal generating resources that enhance the
environmental value or reliability of the electrical system and that
require financial assistance to remain economically viable, as
determined by the  commission   department, by
action of the board  . The  commission  
department, by action of the board,  may require financial
disclosure from applicants for purposes of this paragraph.
   (5) Specified fuel cell technologies, if the  commission
  department  makes all of the following findings:
   (A) The specified technologies have similar or better air
pollutant characteristics than renewable technologies in the report
made pursuant to Section 25748.
   (B) The specified technologies require financial assistance to
become commercially viable by reference to wholesale generation
prices.
   (C) The specified technologies could contribute significantly to
the infrastructure development or other innovation required to meet
the long-term objective of a self-sustaining, competitive supply of
electricity generated from renewable sources.
   (6) Existing wind-generating resources, if the  commission
  department, by action of the board,  finds that
the existing wind-generating resources are a cost-effective source of
reliable energy and environmental benefits compared with other
in-state renewable electricity generation facilities, and that the
existing wind-generating resources require financial assistance to
remain economically viable. The  commission  
department  may require financial disclosure from applicants for
the purposes of this paragraph.
   (f) Notwithstanding any other provision of law, moneys collected
for renewable energy pursuant to Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities
Code shall be transferred to the Renewable Resource Trust Fund.
Moneys collected between January 1, 2007, and January 1, 2012, shall
be used for the purposes specified in this chapter. 
  SEC. 313.    Section 25741 of the Public Resources Code is
amended to read: 
   25741.  As used in this chapter, the following terms have the
following  meaning   meanings  :
   (a) "Delivered" and "delivery" mean the electricity output of an
in-state renewable electricity generation facility that is used to
serve end-use retail customers located within the state. Subject to
verification by the accounting system established by the 
commission   department  pursuant to subdivision
(b) of Section 399.13 of the Public Utilities Code, electricity shall
be deemed delivered if it is either generated at a location within
the state, or is scheduled for consumption by California end-use
retail customers. Subject to criteria adopted by the 
commission   department  , electricity generated by
an eligible renewable energy resource may be considered "delivered"
regardless of whether the electricity is generated at a different
time from consumption by a California end-use customer.
   (b) "In-state renewable electricity generation facility" means a
facility that meets all of the following criteria:
   (1) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
   (2) The facility satisfies one of the following requirements:
   (A) The facility is located in the state or near the border of the
state with the first point of connection to the transmission network
within this state and electricity produced by the facility is
delivered to an in-state location.
   (B) The facility has its first point of interconnection to the
transmission network outside the state and satisfies all of the
following requirements:
   (i) It is connected to the transmission network within the Western
Electricity Coordinating Council (WECC) service territory.
   (ii) It commences initial commercial operation after January 1,
2005.
   (iii) Electricity produced by the facility is delivered to an
in-state location.
   (iv) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
   (v) If the facility is outside of the United States, it is
developed and operated in a manner that is as protective of the
environment as a similar facility located in the state.
   (vi) It participates in the accounting system to verify compliance
with the renewables portfolio standard by retail sellers, once
established by the  Energy Commission  
department  pursuant to subdivision (b) of Section 399.13 of the
Public Utilities Code.
   (C) The facility meets the requirements of clauses (i), (iii),
(iv), (v), and (vi) in subparagraph (B), but does not meet the
requirements of clause (ii) because it commences initial operation
prior to January 1, 2005, if the facility satisfies either of the
following requirements:
   (i) The electricity is from incremental generation resulting from
expansion or repowering of the facility.
   (ii) The facility has been part of the existing baseline of
eligible renewable energy resources of a retail seller established
pursuant to paragraph (2) of subdivision (b) of Section 399.15 of the
Public Utilities Code or has been part of the existing baseline of
eligible renewable energy resources of a local publicly owned
electric utility established pursuant to Section 387 of the Public
Utilities Code.
   (3) For the purposes of this subdivision, "solid waste conversion"
means a technology that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:

   (A) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
   (B) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.
   (C) The technology produces no discharges to surface  waters
 or groundwaters of the state.
   (D) The technology produces no hazardous wastes.
   (E) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
   (F) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
   (G) The technology meets any other conditions established by the
 commission   department  .
   (H) The facility certifies that any local agency sending solid
waste to the facility diverted at least 30 percent of all solid waste
it collects through solid waste reduction, recycling, and
composting. For purposes of this paragraph, "local agency" means any
city, county, or special district, or subdivision thereof, which is
authorized to provide solid waste handling services.
   (c) "Procurement entity" means any person or corporation that
enters into an agreement with a retail seller to procure eligible
renewable energy resources pursuant to subdivision (f) of Section
399.14 of the Public Utilities Code.
   (d) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge authorized to be collected
and to be transferred to the Renewable Resource Trust Fund pursuant
to the Reliable Electric Service Investments Act (Article 15
(commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code).
   (e) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
 commission   former State Energy Resources
Conservation and Development Commission  .
   (f) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code. 
  SEC. 314.    Section 25771 of the Public Resources Code is
amended to read: 
   25771.  On or before July 1, 2006, the  commission
  department  shall develop and adopt all of the
following:
   (a) A database of the energy efficiency of a representative sample
of replacement tires sold in the state, based on test procedures
adopted by the  commission   department  .
   (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   department  the energy efficiency of
replacement tires sold in the state. 
  SEC. 315.    Section 25772 of the Public Resources Code is
amended to read: 
   25772.  On or before July 1, 2007, the  commission, in
consultation with   department by action of  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. 316.    Section 25773 of the Public Resources Code is
amended to read: 
   25773.  (a) The program described in Section 25772 shall include
all of the following:
   (1) The development and adoption of minimum energy efficiency
standards for replacement tires, except to the extent that the
 commission   department  determines that
it is unable to do so in a manner that complies with subparagraphs
(A) to (E), inclusive. Energy efficiency standards adopted pursuant
to this paragraph shall meet all of the following conditions:
   (A) Be technically feasible and cost effective.
   (B) Not adversely affect tire safety.
   (C) Not adversely affect the average tire life of replacement
tires.
   (D) Not adversely affect state efforts to manage scrap tires
pursuant to Chapter 17 (commencing with Section 42860) of Part 3 of
Division                                                  30.
   (2) The development and adoption of consumer information
requirements for replacement tires for which standards have been
adopted pursuant to paragraph (1).
   (b) The energy efficiency standards established pursuant to
paragraph (1) of subdivision (a) shall be based on the results of
laboratory testing and, to the extent it is available and deemed
appropriate by the  commission   department
 , an onroad fleet testing program developed by tire
manufacturers in consultation with the  commission 
 department  and the board, conducted by tire manufacturers,
and submitted to the  commission   department
 on or before January 1, 2006.
   (c) If the  commission   department 
finds that tires used to equip an authorized emergency vehicle, as
defined in Section 165 of the Vehicle Code, are unable to meet the
standards established pursuant to paragraph (1) of subdivision (a),
the  commission   department  shall
authorize an operator of an authorized emergency vehicle fleet to
purchase for those vehicles tires that do not meet those standards.
   (d) The  commission   department  , in
consultation with the board, shall review and revise the program,
including any standards adopted pursuant to the program, as
necessary, but not less than once every three years. The 
commission   department  may not revise the program
or standards in a way that reduces the average efficiency of
replacement tires. 
  SEC. 317.    Section 25782 of the Public Resources Code is
amended to read: 
   25782.  (a) The  commission   department, by
the action of the board  shall, by January 1, 2008, in
consultation with the Public Utilities Commission, local publicly
owned electric utilities, and interested members of the public,
establish eligibility criteria for solar energy systems receiving
ratepayer funded incentives that include all of the following:
   (1) Design, installation, and electrical output standards or
incentives.
   (2) The solar energy system is intended primarily to offset part
or all of the consumer's own electricity demand.
   (3) All components in the solar energy system are new and unused,
and have not previously been placed in service in any other location
or for any other application.
   (4) The solar energy system has a warranty of not less than 10
years to protect against defects and undue degradation of electrical
generation output.
   (5) The solar energy system is located on the same premises of the
end-use consumer where the consumer's own electricity demand is
located.
   (6) The solar energy system is connected to the electrical
corporation's electrical distribution system within the state.
   (7) The solar energy system has meters or other devices in place
to monitor and measure the system's performance and the quantity of
electricity generated by the system.
   (8) The solar energy system is installed in conformance with the
manufacturer's specifications and in compliance with all applicable
electrical and building code standards.
   (b) The  commission   department, by the
action of the board  shall establish conditions on ratepayer
funded incentives that require all of the following:
   (1) Appropriate siting and high quality installation of the solar
energy system by developing installation guidelines that maximize the
performance of the system and prevent qualified systems from being
inefficiently or inappropriately installed. The conditions
established by the  commission   department, by
the action of the board  shall not impact housing designs or
densities presently authorized by a city, county, or city and county.
The goal of this paragraph is to achieve efficient installation of
solar energy systems to promote the greatest energy production per
ratepayer dollar.
   (2) Optimal solar energy system performance during periods of peak
electricity demand.
   (3) Appropriate energy efficiency improvements in the new or
existing home or commercial structure where the solar energy system
is installed.
   (c) The  commission   department, by the
action of the board  shall set rating standards for equipment,
components, and systems to  assure   ensure
 reasonable performance and shall develop standards that provide
for compliance with the minimum ratings.
   (d) Upon establishment of eligibility criteria pursuant to
subdivision (a),  no  a  ratepayer funded
incentives shall  not  be made for a solar energy system
that  does not   fails to  meet the
eligibility criteria. 
  SEC. 318.    Section 25783 of the Public Resources Code is
amended to read: 
   25783.  The  commission   department, by the
action of the board  shall do all the following:
   (a) Publish educational materials designed to demonstrate how
builders may incorporate solar energy systems during construction as
well as energy efficiency measures that best complement solar energy
systems.
   (b) Develop and publish the estimated annual electrical generation
and savings for solar energy systems. The estimates shall vary by
climate zone, type of system, size, life cycle costs, electricity
prices, and other factors the  commission  
department  determines to be relevant to a consumer when making
a purchasing decision.
   (c) Provide assistance to builders and contractors. The assistance
may include technical workshops, training, educational materials,
and related research.
   (d) The  commission   department  shall
annually conduct random audits of solar energy systems to evaluate
their operational performance. 
  SEC. 319.    Section 25784 of the Public Resources Code is
amended to read: 
   25784.  The  commission   department, by
action of the board,  shall adopt guidelines for solar energy
systems receiving ratepayer funded incentives at a publicly noticed
meeting offering all interested parties an opportunity to comment.
Not less than 30 days' public notice shall be given of the meeting
required by this section, before the  commission 
 board  initially adopts guidelines. Substantive changes to
the guidelines shall not be adopted without at least 10 days' written
notice to the public. Notwithstanding any other provision of law,
any guidelines adopted pursuant to this chapter shall be exempt from
the requirements of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code. 
  SEC. 320.    Section 25802 of the Public Resources Code is
amended to read: 
   25802.   Each  (a)     A
 person who submits to the  commission  
department  a notice of intent for any proposed generating
facility shall accompany the notice with a fee of one cent ($0.01)
per kilowatt of net electric capacity of the proposed generation
facility.  Such   The  fee shall only be
paid on one of the alternate proposed facility sites  which
  that  has the highest electrical designed
capacity. In no event shall  such   the 
fee be less than one thousand dollars ($1,000) nor more than
twenty-five thousand dollars ($25,000). 
   For 
    (b)     For  any other facility, the
notice shall be accompanied by a fee of five thousand dollars
($5,000).  Such   The  fee shall only be
paid on one of the alternate proposed facility sites. 
  SEC. 321.    Section 25803 of the Public Resources Code is
amended to read: 
   25803.   All funds   Funds  received by
the  commission   department  pursuant to
Section 25802, shall be remitted to the State Treasurer for deposit
in the account. All funds in the account shall be expended for
purposes of carrying out the provisions of this division, when
appropriated by the Legislature in the Budget Act. 
  SEC. 322.   Section 25900 of the Public Resources Code is
amended to read: 
   25900.  Except as provided in Section 25531, whenever the 
commission   department, by the action of the board,
 finds that any provision of this division is violated or a
violation is threatening to take place  which  
that  constitutes an emergency requiring immediate action to
protect the public health, welfare, or safety, the Attorney General,
upon request of the  commission   department or
the board  , shall petition a court to enjoin  such
  the  violation. The court shall have jurisdiction
to grant  such  prohibitory or mandatory injunctive
relief as may be warranted by way of temporary restraining order,
preliminary injunction, and permanent injunction. 
  SEC. 323.    Section 25901 of the Public Resources Code is
amended to read: 
   25901.  (a) Within 30 days after the  commission 
 department, including the board,  issues its determination
on any matter specified in this division, except as provided in
Section 25531, any aggrieved person may file with the superior court
a petition for a writ of mandate for review  thereof
  of the determination  . Failure to file 
such an action   this petition  does not preclude a
person from challenging the reasonableness and validity of a
decision in any judicial proceedings brought to enforce the decision
or to obtain other civil remedies.
   (b)  The decision of the  commission  
department or the board  shall be sustained by the court unless
the court finds (1) that the  commission  
department or the board  proceeded without, or in excess of its
jurisdiction, (2) that, based exclusively upon a review of the record
before the  commission   department or the
board  , the decision is not supported by substantial evidence
in light of the whole record, or (3) that the  commission
  department or the board  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. 324.    Section 25902 of the Public Resources Code is
amended to read: 
   25902.  Any evaluations in the reports required by Section
 25309   25302  and any findings and
determinations on the notice of intent pursuant to Chapter 6
(commencing with Section 25500) shall not be construed as a final
evaluation, finding, or determination by the  commission
  department or the board  and a court action may
not be brought to review  any such   the 
evaluation, finding, or determination. 
  SEC. 325.    Section 25910 of the Public Resources Code is
amended to read: 
   25910.  The  commission   department 
shall, by regulation adopted  no later than July 1, 1978
  by the board  , establish minimum standards for
the amount of additional insulation (expressed in terms of R-value)
installed in existing buildings. One year after the adoption of those
standards, no insulation shall be installed in any existing building
by a contractor unless the contractor certifies to the customer in
writing that the amount of insulation (expressed in terms of R-value)
meets or exceeds the minimum amount established by the standards.
The minimum standards may vary for different types of buildings or
building occupancies and different climate zones in the state. The
minimum standards shall be economically feasible in that the
resultant savings in energy procurement costs shall be greater than
the cost of the insulation to the customer amortized over the useful
life of the insulation. 
  SEC. 326.    Section 25911 of the Public Resources Code is
amended to read: 
   25911.  The  State Energy Resources Conservation and
Development Commission   California Energy Board 
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   board  to prohibit the sale and
installation of urea formaldehyde foam insulation shall be based upon
a record of scientific evidence  which   that
 demonstrates the need for the prohibition in order to protect
the public health and safety. 
  SEC. 327.    Section 25912 of the Public Resources Code is
amended to read: 
   25912.  Prior to  the board  adopting any regulation
 which   that  causes a prohibition on the
sale and installation of urea formaldehyde foam insulation, the
 commission   department  shall consult
with, and solicit written comments from, all of the following:
   (a) Federal and state agencies with appropriate scientific staffs,
including, but not limited to, the State Department of Health
Services, the National Academy of Sciences, the United States
Department of Housing and Urban Development, the United States
Department of Energy, and the United States Consumer Product Safety
Commission.
   (b) Universities and public and private scientific organizations.

  SEC. 328.    Section 25942 of the Public Resources Code is
amended to read: 
   25942.  (a) On or before July 1, 1995, the  commission
  department  shall establish criteria for adopting
a statewide home energy rating program for residential dwellings.
The program criteria shall include, but are not limited to, all of
the following elements:
   (1) Consistent, accurate, and uniform ratings based on a single
statewide rating scale.
   (2) Reasonable estimates of potential utility bill savings, and
reliable recommendations on cost-effective measures to improve energy
efficiency.
   (3) Training and certification procedures for home raters and
quality assurance procedures to promote accurate ratings and to
protect consumers.
   (4) In coordination with home energy rating service organization
data bases, procedures to establish a centralized, publicly
accessible, data base that includes a uniform reporting system for
information on residential dwellings, excluding proprietary
information, needed to facilitate the program. There shall be no
public access to information in the data base concerning specific
dwellings without the owner's or occupant's permission.
   (5) Labeling procedures that will meet the needs of home buyers,
homeowners, renters, the real estate industry, and mortgage lenders
with an interest in home energy ratings.
   (b) The  commission   department  shall
adopt the program pursuant to subdivision (a) in consultation with
representatives of the Department of Real Estate, the Department of
Housing and Community Development, the Public Utilities Commission,
investor-owned and municipal utilities, cities and counties, real
estate licensees, home builders, mortgage lenders, home appraisers
and inspectors, home energy rating organizations, contractors who
provide home energy services, consumer groups, and environmental
groups.
   (c) On and after January 1, 1996, no home energy rating services
may be performed in this state unless the services have been
certified, if  such  a certification program is
available, by the  commission   department 
to be in compliance with the program criteria specified in
subdivision (a) and, in addition, are in conformity with any other
applicable element of the program.
   (d) On or before July 1, 1996, the  commission 
 department  shall consult with the agencies and
organizations described in subdivision (b), to facilitate a public
information program to inform homeowners, rental property owners,
renters, sellers, and others of the existence of the statewide home
energy rating program adopted by the  commission 
 department  .
   (e) Beginning with the 1998 biennial energy conservation report
required by Section 25401.1, the  commission  
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. 329.    Section 25960 of the Public Resources Code is
amended to read:
   25960.   No   A  new residential-type
gas appliance that is equipped with a pilot light shall  not
 be sold in the state after an alternate means has been
certified by the  commission   board  .
This prohibition shall become operative 24 months after an
intermittent ignition device has been demonstrated and certified by
the  commission   board  as an alternate
means. The  commission   board  may
determine, after demonstration, that there is no feasible alternative
means to the use of pilot light or that the use of a pilot light is
necessary for public health and safety. 
  SEC. 330.    Section 25961 of the Public Resources Code is
amended to read: 
   25961.  The  commission   department 
 , by action of the board,  shall, on or before January 1,
1976, develop in cooperation with affected industry and consumer
representatives, who will be designated as such representatives by
the  commission   board  , the
specifications for certification of intermittent ignition devices
 which   that  shall not significantly
affect the price of gas appliances in competition with similar
electrical appliances. The specification shall be developed so as to
result in the conservation of primary energy resources, shall include
provisions necessary for public health and safety, and shall give
due consideration to the initial costs, including installation and
maintenance costs imposed upon the consumer. 
  SEC. 331.    Section 25962 of the Public Resources Code is
amended to read: 
   25962.  Within 90 days after an intermittent ignition device has
been certified by the  commission   board 
, the  commission   department  shall
notify all gas appliance manufacturers doing business in the state,
as to the prohibition of affected pilot lights and shall inform the
manufacturers of the devices available to comply with this article.

  SEC. 332.    Section 25963 of the Public Resources Code is
amended to read: 
   25963.  The  commission   department 
shall create a seal of certification and shall distribute the seal to
every manufacturer that complies with this article. The seal shall
be affixed to every new appliance sold in the state. 
  SEC. 333.   Section 25964 of the Public Resources Code is
amended to read: 
   25964.  After 24 months after an intermittent ignition device has
been certified by the  commission   board 
,  no   a  person shall  not 
sell or offer for sale in this state any new gas appliances, as
defined in Section 25950, without obtaining the proper seal of
certification from the  commission   board 
, unless the  commission   board 
otherwise permits  such   this  action.
Beginning 24 months after an intermittent ignition device has been
certified by the  commission, no   board, a
 city or county, city and county, or state agency shall  not
 issue a permit for any building to be equipped with any new
gas appliance, as defined in Section 25950, unless  such
  the  building permit shows that the gas appliance
complies with this chapter. However, any new gas appliance 
which   that  does not comply with this chapter may
be installed if the appliance was purchased pursuant to a contract
executed prior to June 17, 1978, and if the building permit was
approved prior to July 8, 1978. 
  SEC. 334.    Section 25965 of the Public Resources Code is
amended to read: 
   25965.  After 24 months after an intermittent ignition device has
been certified by the  commission   board 
, the  commission   department  shall make
periodic inspections of manufacturers and distributors of gas
appliances and may inspect retail outlets, including gas appliances
that have been or are to be installed by contractors or builders at
building sites in order to determine their compliance with this
article. 
  SEC. 335.    Section 25967 of the Public Resources Code is
amended to read: 
   25967.  (a) Any person who violates  any provision of
 this chapter shall be liable for a civil penalty not to
exceed two thousand five hundred dollars ($2,500) for each violation,
which shall be assessed and recovered in a civil action brought in
the name of the people of the State of California by the Attorney
General or by any district attorney, county counsel, or city attorney
in any court of competent jurisdiction.
   (b) If the action is brought by the Attorney General, one-half of
the penalty collected shall be paid to the treasurer of the county in
which the judgment was entered, and one-half to the State Treasurer.
If brought by a district attorney or county counsel, the entire
amount of penalty collected shall be paid to the treasurer of the
county in which the judgment was entered. If brought by a city
attorney or city prosecutor, one-half of the penalty shall be paid to
the treasurer of the county and one-half to the city.
   (c) If the action is brought at the request of the 
commission   department or the board  , the court
shall determine the reasonable expenses incurred by the 
commission   department or the board  in the
investigation and prosecution of the action. 
   Before 
    (d)     Before  any penalty collected
is paid out pursuant to subdivision (b), the amount of such
reasonable expenses incurred by the  commission 
 department or the board  shall be paid to the State
Treasurer. 
  SEC. 336.    Section 25968 of the Public Resources Code is
amended to read: 
   25968.  Any inspector appointed or authorized by the 
commission   department or the board  shall have
access to the premises, equipment, materials, partly finished and
finished articles, and records of any person subject to  the
provisions of  this chapter. 
  SEC. 337.    Section 26004 of the Public Resources Code is
amended to read: 
   26004.  (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
   (b) The authority shall consist of five members, as follows:
   (1) The Director of Finance.
   (2) The  Chairperson of the State Energy Resources
Conservation and Development Commission   Secretary of
the Department 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. 338.    Section 26011.5 of the Public Resources Code
is amended to read: 
   26011.5.  The authority, in consultation with the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  , shall establish criteria for the
selection of projects to receive financing assistance from the
authority. In the selection of projects, the authority shall, in
accordance with the legislative intent, provide financial assistance
under this division in a manner consistent with sound financial
practice. In developing project selection criteria, the authority
shall consider, but not be limited to, all of the following:
   (a) The technological feasibility of the projects.
   (b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
   (c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
   (d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
   (e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division. 
  SEC. 339.    Section 26011.6 of the Public Resources Code
is amended to read: 
   26011.6.  (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
   (b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of  that  Chapter 3.5, including Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health and
safety, and general welfare. Notwithstanding the 120-day limitation
specified in subdivision (e) of Section 11346.1 of the Government
Code, the regulations shall be repealed 180 days after their
effective date, unless the authority complies with Sections 11346.2
to 11347.3, inclusive, as provided in subdivision (e) of Section
11346.1 of the Government Code.
   (c) The authority shall consult with the  State Energy
Resources Conservation and Development Commission  
Department of Energy  regarding the financing of projects to
avoid                                            duplication of other
renewable energy projects.
   (d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
   (e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code). 
  SEC. 340.    Section 30404 of the Public Resources Code is
amended to read: 
   30404.  (a) The commission shall periodically, in the case of the
 State Energy Resources Conservation and Development
Commission   Department of Energy  , the State
Board of Forestry and Fire Protection, the State Water Resources
Control Board and the California regional water quality control
boards, the State Air Resources Board and air pollution control
districts and air quality management districts, the Department of
Fish and Game, the Department of Parks and Recreation, the Department
of Boating and Waterways, the California Geological Survey and the
Division of Oil, Gas, and Geothermal Resources in the Department of
Conservation, and the State Lands Commission, and may, with respect
to any other state agency, submit recommendations designed to
encourage the state agency to carry out its functions in a manner
consistent with this division. The recommendations may include
proposed changes in administrative regulations, rules, and statutes.
   (b) Each of those state agencies shall review and consider the
commission recommendations and shall, within six months from the date
of their receipt, to the extent that the recommendations have not
been implemented, report to the Governor and the Legislature its
action and reasons therefor. The report shall also include the state
agency's comments on any legislation that may have been proposed by
the commission. 
  SEC. 341.    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. 342.    Section 332.1 of the Public Utilities Code is
amended to read: 
   332.1.  (a) (1) It is the intent of the Legislature to enact Item
1 (revised) on the commission's August 21, 2000 agenda, entitled
"Opinion Modifying Decision (D.) D.00-06-034 and D.00-08-021 to
Regarding Interim Rate Caps for San Diego Gas and Electric Company,"
as modified below.
   (2) It is also the intent of the Legislature that to the extent
that the Federal Energy Regulatory Commission orders refunds to
electrical corporations pursuant to their findings, the commission
shall ensure that any refunds are returned to customers.
   (b) The commission shall establish a ceiling of six and
five-tenths cents ($0.065) per kilowatthour on the energy component
of electric bills for electricity supplied to residential, small
commercial, and street lighting customers by the San Diego Gas and
Electric Company, through December 31, 2002, retroactive to June 1,
2000. If the commission finds it in the public interest, this ceiling
may be extended through December 2003 and may be adjusted as
provided in subdivision (d).
   (c) The commission shall establish an accounting procedure to
track and recover reasonable and prudent costs of providing electric
energy to retail customers unrecovered through retail bills due to
the application of the ceiling provided for in subdivision (b). The
accounting procedure shall utilize revenues associated with sales of
energy from utility-owned or managed generation assets to offset an
undercollection, if undercollection occurs. The accounting procedure
shall be reviewed periodically by the commission, but not less
frequently than semiannually. The commission may utilize an existing
proceeding to perform the review. The accounting procedure and review
shall provide a reasonable opportunity for San Diego Gas and
Electric Company to recover its reasonable and prudent costs of
service over a reasonable period of time.
   (d) If the commission determines that it is in the public interest
to do so, the commission, after the date of the completion of the
proceeding described in subdivision (g), may adjust the ceiling from
the level specified in subdivision (b), and may adjust the frozen
rate from the levels specified in subdivision (f), consistent with
the Legislature's intent to provide substantial protections for
customers of the San Diego Gas and Electric Company and their
interest in just and reasonable rates and adequate service.
   (e) For purposes of this section, "small commercial customer"
includes, but is not limited to, all San Diego Gas and Electric
Company accounts on Rate Schedule A of the San Diego Gas and Electric
Company, all accounts of customers who are "general acute care
hospitals," as defined in Section 1250 of the Health and Safety Code,
all San Diego Gas and Electric Company accounts of customers who are
public or private schools for pupils in kindergarten or any of
grades 1 to 12, inclusive, and all accounts on Rate Schedule AL-TOU
under 100 kilowatts.
   (f) The commission shall establish an initial frozen rate of six
and five-tenths cents ($0.065) per kilowatthour on the energy
component of electric bills for electricity supplied to all customers
by the San Diego Gas and Electric Company not subject to subdivision
(b), for the time period ending with the end of the rate freeze for
the Pacific Gas and Electric Company and the Southern California
Edison Company pursuant to Section 368, retroactive to February 7,
2001. The commission shall consider the comparable energy components
of rates for comparable customer classes served by the Pacific Gas
and Electric Company and the Southern California Edison Company and,
if it determines it to be in the public interest, the commission may
adjust this frozen rate, and may do so, retroactive to the date that
rate increases took effect for customers of Pacific Gas and Electric
Company and Southern California Edison Company pursuant to the
commission's March 27, 2001, decision. The commission shall determine
the Fixed Department of Water Resources Set-Aside pursuant to
Section 360.5 for customers subject to this section, reflecting a
retail rate consistent with the rate for the energy component of
electric bills as determined in this subdivision, in place of the
retail rate in effect on January 5, 2001. This section shall be
construed to modify the payment provisions, but may not be construed
to modify the electric procurement obligations of the Department of
Water Resources, pursuant to any contract or agreement in accordance
with Division 27 (commencing with Section 80000) of the Water Code,
and in effect as of February 7, 2001, between the Department of Water
Resources and San Diego Gas and Electric Company.
   (g) The commission shall institute a proceeding to examine the
prudence and reasonableness of the San Diego Gas and Electric Company
in the procurement of wholesale energy on behalf of its customers,
for a period beginning, at the latest, on June 1, 2000. If the
commission finds that San Diego Gas and Electric Company acted
imprudently or unreasonably, the commission shall issue orders that
it determines to be appropriate affecting the retail rates of San
Diego Gas and Electric Company customers including, but not limited
to, refunds.
   (h)  Nothing in this   This   
section  may be construed to   does not 
limit the authority of the Department of Water Resources  , or
its successor,  pursuant to Division 27 (commencing with Section
80000) of the Water Code. 
  SEC. 343.    Article 2 (commencing with Section 334) of
Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is
repealed.  
  SEC. 344.    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 maintained 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. 345.    Section 345.2 is added to the Public
Utilities Code, to read:
   345.2.  (a) The Independent System Operator 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 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 board appointment
function among participating states associated with the expansion of
the Independent System Operator into a multistate entity 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 Independent
System Operator governing board and the Office of Energy Market
Oversight and acceptance for filing by the Federal Energy Regulatory
Commission.  
  SEC. 346.    Section 346 of the Public Utilities Code is
repealed.  
   346.  The Independent System Operator shall immediately
participate in all relevant Federal Energy Regulatory Commission
proceedings. The Independent System Operator shall ensure that
additional filings at the Federal Energy Regulatory Commission
request confirmation of the relevant provisions of this chapter and
seek the authority needed to give the Independent System Operator 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. 347.    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
 Board  , at  such   the 
times as  the Oversight Board   that 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. 348.    Section 350 of the Public Utilities Code is
repealed.  
   350.  The Independent System Operator, in consultation with the
California Energy Resources Conservation and Development Commission,
the Public Utilities Commission, the Western Electricity Coordinating
Council, and concerned regulatory agencies in other western states,
shall within six months after the Federal Energy Regulatory
Commission approval of the Independent System Operator, provide a
report to the Legislature and to the Oversight Board 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. 349.    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  Board  . 
  SEC. 350.    Section 353.7 of the Public Utilities Code is
amended to read: 
   353.7.  Notwithstanding Section 353.3,  nothing in
 this article  may   does not 
result in any exemption from reasonable interconnection charges, lead
to any reduction in contributions by each customer class to public
purpose programs funded under Section 399.8, or relieve any customer
of any obligation determined by the commission to result from
participation in the purchase of power through the Department of
Water Resources  , or its successor, the Department of Energy,
 pursuant to Division 27 (commencing with Section 80000) of the
Water Code. 
  SEC. 351.    Section 360 of the Public Utilities Code is
repealed.  
   360.  The commission 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. 352.    Section 365 of the Public Utilities Code is
repealed.  
   365.  The actions of the commission pursuant to this chapter shall
be consistent with the findings and declarations contained in
Section 330. In addition, the commission shall do all of the
following:
   (a) Facilitate the efforts of the state's electrical corporations
to develop and obtain authorization from the Federal Energy
Regulatory Commission for the creation and operation of an
Independent System Operator and an independent Power Exchange, for
the determination of which transmission and distribution facilities
are subject to the exclusive jurisdiction of the commission, and for
approval, to the extent necessary, of the cost recovery mechanism
established as provided in Sections 367 to 376, inclusive. The
commission shall also participate fully in all proceedings before the
Federal Energy Regulatory Commission in connection with the
Independent System Operator and the independent Power Exchange, and
shall encourage the Federal Energy Regulatory Commission to adopt
protocols and procedures that strengthen the reliability of the
interconnected transmission grid, encourage all publicly owned
utilities in California to become full participants, and maximize
enforceability of such protocols and procedures by all market
participants.
   (b) (1) Authorize direct transactions between electricity
suppliers and end use customers, subject to implementation of the
nonbypassable charge referred to in Sections 367 to 376, inclusive.
Direct transactions shall commence simultaneously with the start of
an Independent System Operator and Power Exchange referred to in
subdivision (a). The simultaneous commencement shall occur as soon as
practicable, but no later than January 1, 1998. The commission shall
develop a phase-in schedule at the conclusion of which all customers
shall have the right to engage in direct transactions. Any phase-in
of customer eligibility for direct transactions ordered by the
commission shall be equitable to all customer classes and
accomplished as soon as practicable, consistent with operational and
other technological considerations, and shall be completed for all
customers by January 1, 2002.
   (2) Customers shall be eligible for direct access irrespective of
any direct access phase-in implemented pursuant to this section if at
least one-half of that customer's electrical load is supplied by
energy from a renewable resource provider certified pursuant to
Section 383, provided however that nothing in this section shall
provide for direct access for electric consumers served by municipal
utilities unless so authorized by the governing board of that
municipal utility.  
  SEC. 353.    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
its successor, the Department of Energy  with respect to its
power program described in Chapter 2 (commencing with Section 80100)
of Division 27 of the Water Code.
   (2) "Existing project participant" means a city with rights and
obligations to the Magnolia Power Project under the Magnolia Power
Project Planning Agreement, dated May 1, 2001.
   (3) "Magnolia Power Project" means a proposed natural gas-fired
electric generating facility to be located at an existing site in
Burbank and for which an application for certification has been filed
with the State Energy Resources Conservation and Development Act
(Docket No. 00-SIT-1) and deemed data adequate pursuant to the
expedited six-month licensing process established under Section 25550
of the Public Resources Code.
   (b) Notwithstanding Section 80110 of the Water Code or Commission
Decision 01-09-060, if the Magnolia Power Project has been
constructed and is otherwise capable of beginning deliveries of
electricity to the existing project participants, an existing project
participant may serve as a community aggregator on behalf of all
retail end-use customers within its jurisdiction.
   (c) Subdivision (b) shall not become operative until both of the
following occur:
   (1) The commission implements a cost-recovery mechanism,
consistent with subdivision (d), that is applicable to customers that
elected to purchase electricity from an alternate provider between
February 1, 2001, and the effective date of the act adding this
section.
   (2) The commission submits a report certifying its satisfaction of
paragraph (1) to the Senate Energy, Utilities and Communications
Committee, or its successor, and the Assembly Committee on Utilities
and Commerce, or its successor.
   (d) (1) It is the intent of the Legislature that each retail
end-use customer that has purchased power from an electrical
corporation on or after February 1, 2001, should bear a fair share of
the department's power purchase costs, as well as power purchase
contract obligations incurred as of January 1, 2003, that are
recoverable from electrical corporation customers in
commission-approved rates. It is the further intent of the
Legislature to prevent any shifting of recoverable costs between
customers.
   (2) The Legislature finds and declares that the provisions in this
subdivision are consistent with the requirements of Section 360.5
and Division 27 (commencing with Section 80000) of the Water Code,
and are therefore declaratory of existing law.
   (e) A retail end-use customer purchasing power from a community
aggregator pursuant to subdivision (b) shall reimburse the department
for all of the following:
   (1) A charge equivalent to the charge  which 
 that  would otherwise be imposed on the customer by the
commission to recover bond related costs pursuant to an agreement
between the commission and the  Department of Water Resources
  department  pursuant to Section 80110 of the
Water Code, that charge shall be payable until all obligations of the
 Department of Water Resources   department
 pursuant to Division 27 of the Water Code are fully paid or
otherwise discharged.
   (2) The costs of the department, equal to the share of the
department's estimated net unavoidable power purchase contract costs
attributable to the customer, as determined by the commission, for
the period commencing with the customer's purchases of electricity
from a community aggregator, through the expiration of all then
existing power purchase contracts entered into by the department.
   (f) A retail end-use customer purchasing power from a community
aggregator pursuant to subdivision (b) shall reimburse the electrical
corporation that previously served the customer for all of the
following:
   (1) The electrical corporation's unrecovered past
undercollections, including all financing costs attributable to that
customer, that the commission lawfully determines may be recovered in
rates.
   (2) The costs of the electrical corporation recoverable in
commission-approved rates, equal to the share of the electrical
corporation's estimated net unavoidable power purchase contract costs
attributable to the customer, as determined by the commission, for
the period commencing with the customer's purchases of electricity
from the community aggregator, through the expiration of all then
existing power purchase contracts entered into by the electrical
corporation.
   (g) (1) A charge or cost imposed pursuant to subdivision (e), and
all revenues received to pay the charge or cost, shall be the
property of the  Department of Water Resources 
department  . A charge or cost imposed pursuant to subdivision
(f), and all revenues received to pay the charge or cost, shall be
the property of the particular electrical corporation. The commission
shall establish mechanisms, including agreements with, or orders
with respect to, electrical corporations necessary to  assure
  ensure  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. 354.    Section 366.2 of the Public Utilities Code is
amended to read: 
   366.2.  (a) (1) Customers shall be entitled to aggregate their
electric loads as members of their local community with community
choice aggregators.
   (2) Customers may aggregate their loads through a public process
with community choice aggregators, if each customer is given an
opportunity to opt out of their community's aggregation program.
   (3) If a customer opts out of a community choice aggregator's
program, or has no community choice program available, that customer
shall have the right to continue to be served by the existing
electrical corporation or its successor in interest.
   (b) If a public agency seeks to serve as a community choice
aggregator, it shall offer the opportunity to purchase electricity to
all residential customers within its jurisdiction.
   (c) (1) Notwithstanding Section 366, a community choice aggregator
is hereby authorized to aggregate the electrical load of interested
electricity consumers within its boundaries to reduce transaction
costs to consumers, provide consumer protections, and leverage the
negotiation of contracts. However, the community choice aggregator
may not aggregate electrical load if that load is served by a local
publicly owned electric utility. A community choice aggregator may
group retail electricity customers to solicit bids, broker, and
contract for electricity and energy services for those customers. The
community choice aggregator may enter into agreements for services
to facilitate the sale and purchase of electricity and other related
services. Those service agreements may be entered into by a single
city or county, a city and county, or by a group of cities, cities
and counties, or counties.
   (2) Under community choice aggregation, customer participation may
not require a positive written declaration, but all customers shall
be informed of their right to opt out of the community choice
aggregation program. If no negative declaration is made by a
customer, that customer shall be served through the community choice
aggregation program.
   (3) A community choice aggregator establishing electrical load
aggregation pursuant to this section shall develop an implementation
plan detailing the process and consequences of aggregation. The
implementation plan, and any subsequent changes to it, shall be
considered and adopted at a duly noticed public hearing. The
implementation plan shall contain all of the following:
   (A) An organizational structure of the program, its operations,
and its funding.
   (B) Ratesetting and other costs to participants.
   (C) Provisions for disclosure and due process in setting rates and
allocating costs among participants.
   (D) The methods for entering and terminating agreements with other
entities.
   (E) The rights and responsibilities of program participants,
including, but not limited to, consumer protection procedures, credit
issues, and shutoff procedures.
   (F) Termination of the program.
   (G) A description of the third parties that will be supplying
electricity under the program, including, but not limited to,
information about financial, technical, and operational capabilities.

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

   (A) Universal access.
   (B) Reliability.
   (C) Equitable treatment of all classes of customers.
   (D) Any requirements established by state law or by the commission
concerning aggregated service.
   (5) In order to determine the cost-recovery mechanism to be
imposed on the community choice aggregator pursuant to subdivisions
(d), (e), and (f) that shall be paid by the customers of the
community choice aggregator to prevent shifting of costs, the
community choice aggregator shall file the implementation plan with
the commission, and any other information requested by the commission
that the commission determines is necessary to develop the
cost-recovery mechanism in subdivisions (d), (e), and (f).
   (6) The commission shall notify any electrical corporation serving
the customers proposed for aggregation that an implementation plan
initiating community choice aggregation has been filed, within 10
days of the filing.
   (7) Within 90 days after the community choice aggregator
establishing load aggregation files its implementation plan, the
commission shall certify that it has received the implementation
plan, including any additional information necessary to determine a
cost-recovery mechanism. After certification of receipt of the
implementation plan and any additional information requested, the
commission shall then provide the community choice aggregator with
its findings regarding any cost recovery that must be paid by
customers of the community choice aggregator to prevent a shifting of
costs as provided for in subdivisions (d), (e), and (f).
   (8) No entity proposing community choice aggregation shall act to
furnish electricity to electricity consumers within its boundaries
until the commission determines the cost-recovery that must be paid
by the customers of that proposed community choice aggregation
program, as provided for in subdivisions (d), (e), and (f). The
commission shall designate the earliest possible effective date for
implementation of a community choice aggregation program, taking into
consideration the impact on any annual procurement plan of the
electrical corporation that has been approved by the commission.
   (9) All electrical corporations shall cooperate fully with any
community choice aggregators that investigate, pursue, or implement
community choice aggregation programs. Cooperation shall include
providing the entities with appropriate billing and electrical load
data, including, but not limited to, data detailing electricity needs
and patterns of usage, as determined by the commission, and in
accordance with procedures established by the commission. Electrical
corporations shall continue to provide all metering, billing,
collection, and customer service to retail customers that participate
in community choice aggregation programs. Bills sent by the
electrical corporation to retail customers shall identify the
community choice aggregator as providing the electrical energy
component of the bill. The commission shall determine the terms and
conditions under which the electrical corporation provides services
to community choice aggregators and retail customers.
   (10) (A) A city, county, or city and county that elects to
implement a community choice aggregation program within its
jurisdiction pursuant to this chapter shall do so by ordinance.
   (B) Two or more cities, counties, or cities and counties may
participate as a group in a community choice aggregation pursuant to
this chapter, through a joint powers agency established pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code, if each entity adopts an ordinance pursuant to
subparagraph (A).
   (11) Following adoption of aggregation through the ordinance
described in paragraph (10), the program shall allow any retail
customer to opt out and to continue to be served as a bundled service
customer by the existing electrical corporation, or its successor in
interest. Delivery services shall be provided at the same rates,
terms, and conditions, as approved by the commission, for community
choice aggregation customers and customers that have entered into a
direct transaction where applicable, as determined by the commission.
Once enrolled in the aggregated entity, any ratepayer that chooses
to opt out within 60 days or two billing cycles of the date of
enrollment may do so without penalty and shall be entitled to receive
default service pursuant to paragraph (3) of subdivision (a).
Customers that return to the electrical corporation for procurement
services shall be subject to the same terms and conditions as are
applicable to other returning direct access customers from the same
class, as determined by the commission, as authorized by the
commission pursuant to this code or any other provision of law. Any
reentry fees to be imposed after the opt-out period specified in this
paragraph, shall be approved by the commission and shall reflect the
cost of reentry. The commission shall exclude any amounts previously
determined and paid pursuant to subdivisions (d), (e), and (f) from
the cost of reentry.
   (12) Nothing in this section shall be construed as authorizing any
city or any community choice retail load aggregator to restrict the
ability of retail electricity customers to obtain or receive service
from any authorized electric service provider in a manner consistent
with law.
   (13) (A) The community choice aggregator shall fully inform
participating customers at least twice within two calendar months, or
60 days, in advance of the date of commencing automatic enrollment.
Notifications may occur concurrently with billing cycles. Following
enrollment, the aggregated entity shall fully inform participating
customers for not less than two consecutive billing cycles.
Notification may include, but is not limited to, direct mailings to
customers, or inserts in water, sewer, or other utility bills. Any
notification shall inform customers of both of the following:
   (i) That they are to be automatically enrolled and that the
customer has the right to opt out of the community choice aggregator
without penalty.
   (ii) The terms and conditions of the services offered.
   (B) The community choice aggregator may request the commission to
approve and order the electrical corporation to provide the
notification required in subparagraph (A). If the commission orders
the electrical corporation to send one or more of the notifications
required pursuant to subparagraph (A) in the electrical corporation's
normally scheduled monthly billing process, the electrical
corporation shall be entitled to recover from the community choice
aggregator all reasonable incremental costs it incurs related to the
notification or notifications. The electrical corporation shall fully
cooperate with the community choice aggregator in determining the
feasibility and costs associated with using the electrical
corporation's normally scheduled monthly billing process to provide
one or more of the notifications required pursuant to subparagraph
(A).
   (C) Each notification shall also include a mechanism by which a
ratepayer may opt out of community choice aggregated service. The opt
out may take the form of a self-addressed return postcard indicating
the customer's election to remain with, or return to, electrical
energy service provided by the electrical corporation, or another
straightforward means by which the customer may elect to derive
electrical energy service through the electrical corporation
providing service in the area.
   (14) The community choice aggregator shall register with the
commission, which may require additional information to ensure
compliance with basic consumer protection rules and other procedural
matters.
   (15) Once the community choice aggregator's contract is signed,
the community choice aggregator shall notify the applicable
electrical corporation that community choice service will commence
within 30 days.
   (16) Once notified of a community choice aggregator program, the
electrical corporation shall transfer all applicable accounts to the
new supplier within a 30-day period from the date of the close of
their normally scheduled monthly metering and billing process.
   (17) An electrical corporation shall recover from the community
choice aggregator any costs reasonably attributable to the community
choice aggregator, as determined by the commission, of implementing
this section, including, but not limited to, all business and
information system changes, except for transaction-based costs as
described in this paragraph. Any costs not reasonably attributable to
a community choice aggregator shall be recovered from ratepayers, as
determined by the commission. All reasonable transaction-based costs
of notices, billing, metering, collections, and customer
communications or other services provided to an aggregator or its
customers shall be recovered from the aggregator or its customers on
terms and at rates to be approved by the commission.
   (18) At the request and expense of any community choice
aggregator, electrical corporations shall install, maintain and
calibrate metering devices at mutually agreeable locations within or
adjacent to the community aggregator's political boundaries. The
electrical corporation shall read the metering devices and provide
the data collected to the community aggregator at the aggregator's
expense. To the extent that the community aggregator requests a
metering location that would require alteration or modification of a
circuit, the electrical corporation shall only be required to alter
or modify a circuit if such alteration or modification does not
compromise the safety, reliability  ,  or operational
flexibility of the electrical corporation's facilities. All costs
incurred to modify circuits pursuant to this paragraph, shall be
borne by the community aggregator.
   (d) (1) It is the intent of the Legislature that each retail
end-use customer that has purchased power from an electrical
corporation on or after February 1, 2001, should bear a fair share of
the  Department of Water Resources'  electricity
purchase costs  of the Department of Water Resources, or its
successor, the Department of Energy  , as well as electricity
purchase contract obligations incurred as of the effective date of
the act adding this section, that are recoverable from electrical
corporation customers in commission-approved rates. It is further the
intent of the Legislature to prevent any shifting of recoverable
costs between customers.
   (2) The Legislature finds and declares that this subdivision is
consistent with the requirements of Division 27 (commencing with
Section 80000) of the Water Code and Section 360.5, and is therefore
declaratory of existing law.
   (e) A retail end-use customer that purchases electricity from a
community choice aggregator pursuant to this section shall pay both
of the following:
   (1) A charge equivalent to the charges that would otherwise be
imposed on the customer by the commission to recover bond related
costs pursuant to any agreement between the commission and the
Department of Water Resources  , or its   successor
  , the Department of Energy  pursuant to Section 80110
of the Water Code, which charge shall be payable until any
obligations of the Department of Water Resources  , or its
successor, the Department of Energy  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  of the Department of Water Resources, or its
successor,  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, the Department
of Energy  .
   (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  , or its
successor, the Department of Energy  . 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. 355.    Section 384 of the Public Utilities Code is
amended to read: 
   384.  (a) Funds transferred to the State Energy Resources
Conservation and Development Commission   Department of
Energy  pursuant to this article for purposes of public interest
research, development, and demonstration shall be transferred to the
Public Interest Research, Development, and Demonstration Fund, which
is hereby created in the State Treasury. The fund is a trust fund
and shall contain money from all interest, repayments,
disencumbrances, royalties, and any other proceeds appropriated,
transferred, or otherwise received for purposes pertaining to public
interest research, development, and demonstration. Any appropriations
that are made from the fund shall have an encumbrance period of not
longer than two years, and a liquidation period of not longer than
four years.
   (b) Funds deposited in the Public Interest Research, Development,
and Demonstration Fund may be expended for projects that serve the
energy needs of both stationary and transportation purposes if the
research provides an electricity ratepayer benefit.
   (c) The  State Energy Resources Conservation and
Development Commission   Department of Energy 
shall report annually to the appropriate budget committees of the
Legislature on any encumbrances or liquidations that are outstanding
at the time the commission's budget is submitted to the Legislature
for review. 
  SEC. 356.    Section 398.3 of the Public Utilities Code is
amended to read: 
   398.3.  (a) Beginning January 1, 1998, or as soon as practicable
thereafter, each generator that provides meter data to a system
operator shall report to the system operator electricity generated in
kilowatthours by hour by generator, the fuel type or fuel types and
fuel consumption by fuel type by month on an historical recorded
quarterly basis. Facilities using only one fuel type may satisfy this
requirement by reporting fuel type only. With regard to any facility
using more than one fuel type, reports shall reflect the fuel
consumed as a percentage of electricity generation.
   (b) The  California Energy Resources Conservation and
Development Commission   Department of Energy 
shall have authorization to access the electricity generation data in
kilowatthours by hour for each facility that provides meter data to
the system operator, and the fuel type or fuel types.
   (c) With regard to out-of-state generation, the 
California Energy Resources Conservation and Development Commission
  Department of Energy  shall have authorization to
access the electricity generation data in kilowatthours by hour at
the point at which out-of-state generation is metered, to the extent
the information has been submitted to a system operator.
   (d) Trade secrets as defined in subdivision (d) of Section 3426.1
of the Civil Code contained in the information provided to the system
operators pursuant to this section shall be treated as confidential.
These data may be disclosed only by the system operators and only by
authorization of the generator except that the  California
Energy Resources Conservation and Development Commission 
 Department of Energy  shall have authorization to access
these data, shall consider all these data to be trade secrets, and
shall only release these data in an aggregated form such that trade
secrets cannot be discerned. 
  SEC. 357.   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 June 1, 2009, and annually
thereafter, to the  Energy Commission  
Department of Energy  , for each electricity offering for the
previous calendar year, each of the following:
   (1) The kilowatthours purchased, by generator and fuel type during
the previous calendar year, consistent with the meter data,
including losses, reported to the system operator.
   (2) For each electricity offering the kilowatthours sold at
retail.
   (3) For each electricity offering the disclosures made to
consumers pursuant to Section 398.4.
   (b) Information submitted to the  Energy Commission
  Department of Energy  pursuant to this section
that is a trade secret as defined in subdivision (d) of Section
3426.1 of the Civil Code shall not be released except in an
aggregated form such that trade secrets cannot be discerned.
   (c) On or before January 1, 1998, the  Energy Commission
  Department of Energy  shall specify guidelines
and standard formats, based on the requirements of this article and
subject to public hearing, for the submittal of information pursuant
to this article.
   (d) In developing the rules and procedures specified in this
section, the  Energy Commission   Department of
Energy  shall seek to minimize the reporting burden and cost of
reporting that it imposes on retail suppliers.
   (e) The provisions of this section shall 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.
   (f) The  Energy Commission   Department of
Energy  may verify the veracity of environmental claims made by
retail suppliers. 
  SEC. 358.    Section 399.2.5 of the Public Utilities Code
is amended to read: 
   399.2.5.  (a) Notwithstanding any other provision in Sections 1001
to 1013, inclusive, an application  to the California Energy
Board within the Department of Energy  of an electrical
corporation for a certificate authorizing the construction of new
transmission facilities shall be deemed to be necessary to the
provision of electric service for purposes of any determination made
under Section 1003 if the  commission  
California Energy Board within 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 commission shall take all feasible actions to
ensure that the transmission rates established by the Federal Energy
Regulatory Commission are fully reflected in any retail rates
established by the commission. These actions shall include, but are
not limited to:
   (1) Making findings, where supported by an evidentiary record,
that those transmission facilities provide benefit to the
transmission network and are necessary to facilitate the achievement
of the renewables portfolio standard established in Article 16
(commencing with Section 399.11).
   (2) Directing the utility to which the generator will be
interconnected, where the direction is not preempted by federal law,
to seek the recovery through general transmission rates of the costs
associated with the transmission facilities.
   (3) Asserting the positions described in paragraphs (1) and (2) to
the Federal Energy Regulatory Commission in appropriate proceedings.

   (4) Allowing 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. 359.    Section 399.8 of the Public Utilities Code is
amended to read:
   399.8.  (a) In order to ensure that the citizens of this state
continue to receive safe, reliable, affordable, and environmentally
sustainable electric service, it is the policy of this state and the
intent of the Legislature that prudent investments in energy
efficiency, renewable energy, and research, development  , 
and demonstration shall continue
      to be made.
   (b) (1) Every customer of an electrical corporation shall pay a
nonbypassable system benefits charge authorized pursuant to this
article. The system benefits charge shall fund energy efficiency,
renewable energy, and research, development  ,  and
demonstration.
   (2) Local publicly owned electric utilities shall continue to
collect and administer system benefits charges pursuant to Section
385.
   (c) (1) The commission shall require each electrical corporation
to identify a separate rate component to collect revenues to fund
energy efficiency, renewable energy, and research, development  ,
 and demonstration programs authorized pursuant to this section
beginning January 1, 2002, and ending January 1, 2012. The rate
component shall be a nonbypassable element of the local distribution
service and collected on the basis of usage.
   (2) This rate component may not exceed, for any tariff schedule,
the level of the rate component that was used to recover funds
authorized pursuant to Section 381 on January 1, 2000. If the amounts
specified in paragraph (1) of subdivision (d) are not recovered
fully in any year, the commission shall reset the rate component to
restore the unrecovered balance, provided that the rate component may
not exceed, for any tariff schedule, the level of the rate component
that was used to recover funds authorized pursuant to Section 381 on
January 1, 2000. Pending restoration, any annual shortfalls shall be
allocated pro rata among the three funding categories in the
proportions established in paragraph (1) of subdivision (d).
   (d) The commission shall order San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company to collect these funds commencing on January 1, 2002, as
follows:
   (1) Two hundred twenty-eight million dollars ($228,000,000) per
year in total for energy efficiency and conservation activities,
sixty-five million five hundred thousand dollars ($65,500,000) in
total per year for renewable energy, and sixty-two million five
hundred thousand dollars ($62,500,000) in total per year for
research, development  ,  and demonstration. The funds for
energy efficiency and conservation activities shall continue to be
allocated in proportions established for the year 2000 as set forth
in paragraph (1) of subdivision (c) of Section 381.
   (2) The amounts shall be adjusted annually at a rate equal to the
lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
   (e) The commission shall ensure that each electrical corporation
allocates funds transferred by the  Energy Commission
  Department of Energy  pursuant to subdivision (b)
of Section 25743 in a manner that maximizes the economic benefit to
all customer classes that funded the New Renewable Resources Account.

   (f) The commission and the  Energy Commission 
 Department of Energy  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. 360.    Section 399.11 of the Public Utilities Code
is amended to read: 
   399.11.  The Legislature finds and declares all of the following:
   (a) In order to attain a target of generating 20 percent of total
retail sales of electricity in California from eligible renewable
energy resources by December 31, 2010, and for the purposes of
increasing the diversity, reliability, public health and
environmental benefits of the energy mix, it is the intent of the
Legislature that the commission and the  State Energy
Resources Conservation and Development Commission  
Department of Energy  implement the California Renewables
Portfolio Standard Program described in this article.
   (b) Increasing California's reliance on eligible renewable energy
resources may promote stable electricity prices, protect public
health, improve environmental quality, stimulate sustainable economic
development, create new employment opportunities, and reduce
reliance on imported fuels.
   (c) The development of eligible renewable energy resources and the
delivery of the electricity generated by those resources to
customers in California may ameliorate air quality problems
throughout the state and improve public health by reducing the
burning of fossil fuels and the associated environmental impacts and
by reducing in-state fossil fuel consumption.
   (d) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the  State Energy Resources Conservation and
Development Commission   Department of Energy  and
established pursuant to Chapter 8.6 (commencing with Section 25740)
of Division 15 of the Public Resources Code.
   (e) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets. 
  SEC. 361.    Section 399.12 of the Public Utilities Code
is amended to read: 
   399.12.  For purposes of this article, the following terms have
the following meanings:
   (a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
   (b) "Delivered" and "delivery" have the same meaning as provided
in subdivision (a) of Section 25741 of the Public Resources Code.
   (c) "Eligible renewable energy resource" means an electric
generating facility that meets the definition of "in-state renewable
electricity generation facility" in Section 25741 of the Public
Resources Code, subject to the following limitations:
   (1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility owned or procured the electricity
from the facility as of December 31, 2005. A new hydroelectric
facility is not an eligible renewable energy resource if it will
cause an adverse impact on instream beneficial uses or cause a change
in the volume or timing of streamflow.
   (B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
   (2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable resource unless it is
located in Stanislaus County and was operational prior to September
26, 1996.
   (d) "Procure" means that a retail seller or local publicly owned
electric utility receives delivered electricity generated by an
eligible renewable energy resource that it owns or for which it has
entered into an electricity purchase agreement. Nothing in this
article is intended to imply that the purchase of electricity from
third parties in a wholesale transaction is the preferred method of
fulfilling a retail seller's obligation to comply with this article
or the obligation of a local publicly owned electric utility to meet
its renewables portfolio standard implemented pursuant to Section
387.
   (e) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller is required to procure pursuant to this article or
the obligation of a local publicly owned electric utility to meet its
renewables portfolio standard implemented pursuant to Section 387.
   (f) (1) "Renewable energy credit" means a certificate of proof,
issued through the accounting system established by the 
Energy Commission   Department of Energy  pursuant
to Section 399.13, that one unit of electricity was generated and
delivered by an eligible renewable energy resource.
   (2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
   (3) No electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity, as determined by the  Energy Commission
  Department of Energy  , shall result in the
creation of a renewable energy credit.
   (g) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
   (1) An electrical corporation, as defined in Section 218.
   (2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
   (3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric service provider shall be
subject to the same terms and conditions applicable to an electrical
corporation pursuant to this article.  Nothing in this
  This  paragraph  shall  
does not  impair a contract entered into between an electric
service provider and a retail customer prior to the suspension of
direct access by the commission pursuant to Section 80110 of the
Water Code.
   (4) "Retail seller" does not include any of the following:
   (A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.

   (B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
   (C) A local publicly owned electric utility. 
  SEC. 362.    Section 399.12.5 of the Public Utilities Code
is amended to read: 
   399.12.5.  (a) Notwithstanding subdivision (c) of Section 399.12,
a small hydroelectric generation facility that satisfies the criteria
for an eligible renewable energy resource pursuant to Section 399.12
shall not lose its eligibility if efficiency improvements undertaken
after January 1, 2008, cause the generating capacity of the facility
to exceed 30 megawatts, and the efficiency improvements do not
result in an adverse impact on instream beneficial uses or cause a
change in the volume or timing of streamflow. The entire generating
capacity of the facility shall be eligible.
   (b) Notwithstanding subdivision (c) of Section 399.12, the
incremental increase in the amount of electricity generated from a
hydroelectric generation facility as a result of efficiency
improvements at the facility, is electricity from an eligible
renewable energy resource, without regard to the electrical output of
the facility, if all of the following conditions are met:
   (1) The incremental increase is the result of efficiency
improvements from a retrofit that do not result in an adverse impact
on instream beneficial uses or cause a change in the volume or timing
of streamflow.
   (2) The hydroelectric generation facility has, within the
immediately preceding 15 years, received certification from the State
Water Resources Control Board pursuant to Section 401 of the Clean
Water Act (33 U.S.C. Sec. 1341), or has received certification from a
regional board to which the state board has delegated authority to
issue certification, unless the facility is exempt from certification
because there is no potential for discharge into waters of the
United States.
   (3) The hydroelectric generation facility was operational prior to
January 1, 2007, the efficiency improvements are initiated on or
after January 1, 2008, the efficiency improvements are not the result
of routine maintenance activities, as determined by the 
Energy Commission   Department of Energy, by action of
the California Energy Board  , and the efficiency improvements
were not included in any resource plan sponsored by the facility
owner prior to January 1, 2008.
   (4) All of the incremental increase in electricity resulting from
the efficiency improvements are demonstrated to result from a
long-term financial commitment by the retail seller or local publicly
owned electric utility. For purposes of this paragraph, "long-term
financial commitment" means either new ownership investment in the
facility by the retail seller or local publicly owned electric
utility or a new or renewed contract with a term of 10 or more years,
which includes procurement of the incremental generation.
   (c) The incremental increase in the amount of electricity
generated from a hydroelectric generation facility as a result of
efficiency improvements at the facility are not eligible for
supplemental energy payments pursuant to the Renewable Energy
Resources Program (Chapter 8.6 (commencing with Section 25740) of
Division 15 of the Public Resources Code), or a successor program.

  SEC. 363.    Section 399.13 of the Public Utilities Code
is amended to read: 
   399.13.  The  Energy Commission   Department
of Energy, by action of the California Energy Board,  shall do
all of the following:
   (a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision (b) of Section 399.12.
   (b) Design and implement an accounting system to verify compliance
with the renewables portfolio standard by retail sellers, to ensure
that electricity generated by an eligible renewable energy resource
is counted only once for the purpose of meeting the renewables
portfolio standard of this state or any other state, to certify
renewable energy credits produced by eligible renewable energy
resources, and to verify retail product claims in this state or any
other state. In establishing the guidelines governing this accounting
system, the  Energy Commission   Department of
Energy  shall collect data from electricity market participants
that it deems necessary to verify compliance of retail sellers, in
accordance with the requirements of this article and the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code). In seeking data from
electrical corporations, the  Energy Commission 
 Department of Energy  shall request data from the
commission. The commission shall collect data from electrical
corporations and remit the data to the  Energy Commission
  Department of Energy  within 90 days of the
request.
   (c) Establish a system for tracking and verifying renewable energy
credits that, through the use of independently audited data,
verifies the generation and delivery of electricity associated with
each renewable energy credit and protects against multiple counting
of the same renewable energy credit. The  Energy Commission
  Department of   Energy  shall consult
with other western states and with the Western Electricity
Coordinating Council in the development of this system.
   (d) Certify, for purposes of compliance with the renewable
portfolio standard requirements by a retail seller, the eligibility
of renewable energy credits associated with deliveries of electricity
by an eligible renewable energy resource to a local publicly owned
electric utility, if the  Energy Commission  
Department of Energy  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. 364.    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 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  former State
 Energy  Resources Conservation and Development 
Commission pursuant to subdivision (b) of Section 25743 of the Public
Resources Code and the 51.5 percent of the funds which would have
been collected through January 1, 2012, from the customers of the
electrical corporation based on the renewable energy public goods
charge in effect as of January 1, 2007.
   (2) The above-market costs of a contract selected by an electrical
corporation may be counted toward the cost limitation if all of the
following conditions are satisfied:
   (A) The contract has been approved by the commission and was
selected through a competitive solicitation pursuant to the
requirements of subdivision (d) of Section 399.14.
   (B) The contract covers a duration of no less than 10 years.
   (C) The contracted project is a new or repowered facility
commencing commercial operations on or after January 1, 2005.
   (D) No purchases of renewable energy credits may be eligible for
consideration as an above-market cost.
   (E) The above-market costs of a contract do not include any
indirect expenses including imbalance energy charges, sale of excess
energy, decreased generation from existing resources, or transmission
upgrades.
   (3) If the cost limitation for an electrical corporation is
insufficient to support the total costs expended above the market
prices determined in subdivision (c) for the procurement of eligible
renewable energy resources satisfying the conditions of paragraph
(2), the commission shall allow the electrical corporation to limit
its procurement to the quantity of eligible renewable energy
resources that can be procured at or below the market prices
established in subdivision (c).
   (4)  Nothing in this   This  section
 prevents   does not prevent  an electrical
corporation from voluntarily proposing to procure eligible renewable
energy resources at above-market prices that are not counted toward
the cost limitation. Any voluntary procurement involving above-market
costs shall be subject to commission approval prior to the expense
being recovered in rates.
   (e) The establishment of a renewables portfolio standard shall not
constitute implementation by the commission of the federal Public
Utility Regulatory Policies Act of 1978 (Public Law 95-617).
   (f) The commission shall consult with the  Energy
Commission   Department of Energy  in calculating
market prices under subdivision (c) and establishing other renewables
portfolio standard policies. 
  SEC. 365.    Section 399.16 of the Public Utilities Code
is amended to read: 
   399.16.  (a) The commission, by rule, may authorize the use of
renewable energy credits to satisfy the requirements of the
renewables portfolio standard established pursuant to this article,
subject to the following conditions:
   (1) Prior to authorizing any renewable energy credit to be used
toward satisfying annual procurement targets, the commission and the
 Energy Commission   Department of Energy, by
action of the California Energy Board,  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   Renewable  energy
credits shall  not  be created for electricity generated
pursuant to any electricity purchase contract with a retail seller or
a local publicly owned electric utility executed before January 1,
2005, unless the contract contains explicit terms and conditions
specifying the ownership or disposition of those credits. Deliveries
under those contracts shall be tracked through the accounting system
described in subdivision (b) of Section 399.13 and included in the
baseline quantity of eligible renewable energy resources of the
purchasing retail seller pursuant to Section 399.15.
   (6)  No renewable   Renewable  energy
credits shall  not  be created for electricity generated
under any electricity purchase contract executed after January 1,
2005, pursuant to the federal Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. Sec. 2601 et seq.). Deliveries under the
electricity purchase contracts shall be tracked through the
accounting system described in subdivision (b) of Section 399.12 and
count toward the renewables portfolio standard obligations of the
purchasing retail seller.
   (7) The commission may limit the quantity of renewable energy
credits that may be procured unbundled from electricity generation by
any retail seller, to meet the requirements of this article.
   (8)  No   An  electrical corporation
shall  not  be obligated to procure renewable energy credits
to satisfy the requirements of this article
                  in the event that the total costs expended above
the applicable market prices for the procurement of eligible
renewable energy resources exceeds the cost limitation established
pursuant to subdivision (d) of Section 399.15.
   (9) Any additional condition that the commission determines is
reasonable.
   (b) The commission shall allow an electrical corporation to
recover the reasonable costs of purchasing renewable energy credits
in rates. 
  SEC. 366.    Section 399.17 of the Public Utilities Code
is amended to read: 
   399.17.  (a) Subject to the provisions of this section, the
requirements of this article apply to an electrical corporation with
60,000 or fewer customer accounts in California that serves retail
end-use customers outside California.
   (b) For an electrical corporation with 60,000 or fewer customer
accounts in California that serves retail end-use customers outside
California, an eligible renewable energy resource includes a facility
that is located outside California, if the facility is connected to
the Western Electricity Coordinating Council (WECC) transmission
system, provided all of the following conditions are met:
   (1) The electricity generated by the facility is procured by the
electrical corporation on behalf of its California customers 
,  and is not used to fulfill renewable energy procurement
requirements in other states.
   (2) The electrical corporation participates in, and complies with,
the accounting system administered by the  Energy Commission
  Department of Energy, by action of the California
Energy Board,  pursuant to subdivision (b) of Section 399.13.
   (3) The  Energy Commission   Department of
Energy, by action of the California Energy Board,  verifies that
the electricity generated by the facility is eligible to meet the
annual procurement targets of this article.
   (c) The commission shall determine the annual procurement targets
for an electrical corporation with 60,000 or fewer customer accounts
in California that serves retail end-use customers outside
California, as a specified percentage of total kilowatthours sold by
the electrical corporation to its retail end-use customers in
California in a calendar year.
   (d) An electrical corporation with 60,000 or fewer customer
accounts in California that serves retail end-use customers outside
California, may use an integrated resource plan prepared in
compliance with the requirements of another state utility regulatory
commission, to fulfill the requirement to prepare a renewable energy
procurement plan pursuant to this article, provided the plan meets
the requirements of Sections 399.11, 399.12, 399.13, and 399.14, as
modified by this section.
   (e) Procurement and administrative costs associated with long-term
contracts entered into by an electrical corporation with 60,000 or
fewer customer accounts in California that serves retail end-use
customers outside California, for eligible renewable energy resources
pursuant to this article, at or below the market price determined by
the commission pursuant to subdivision (c) of Section 399.15, shall
be deemed reasonable per se, and shall be recoverable in rates of the
electrical corporation's California customers, provided the costs
are not recoverable in rates in other states served by the electrical
corporation. 
  SEC. 367.    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 Board 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. 368.    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 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
  ensure  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. The commission shall determine the schedule for
amortizing the overcollection or undercollection in the balancing
account to ensure that the 5 percent threshold is not exceeded. After
January 1, 2006, this adjustment shall occur when deemed appropriate
by the commission consistent with the objectives of this section.
   (4) Moderate the price risk associated with serving its retail
customers, including the price risk embedded in its long-term supply
contracts, by authorizing an electrical corporation to enter into
financial and other electricity-related product contracts.
   (5) Provide for just and reasonable rates, with an appropriate
balancing of price stability and price level in the electrical
corporation's procurement plan.
   (e) The commission shall provide for the periodic review and
prospective modification of an electrical corporation's procurement
plan.
   (f) The commission may engage an independent consultant or
advisory service to evaluate risk management and strategy. The
reasonable costs of any consultant or advisory service is a
reimbursable expense and eligible for funding pursuant to Section
631.
   (g) The commission shall adopt appropriate procedures to ensure
the confidentiality of any market sensitive information submitted in
an electrical corporation's proposed procurement plan or resulting
from or related to its approved procurement plan, including, but not
limited to, proposed or executed power purchase agreements, data
request responses, or consultant reports, or any combination,
provided that the Office of Ratepayer Advocates and other consumer
groups that are nonmarket participants shall be provided access to
this information under confidentiality procedures authorized by the
commission.
   (h)  Nothing in this section alters, modifies, or amends
  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.  Nothing in
this section expands, modifies, or limits   This section
  does not expand, modify, or limit  the 
State Energy Resources Conservation and Development Commission's
  Department of Energy's  existing authority and
responsibilities as set forth in Sections 25216, 25216.5, and 25323
of the Public Resources Code.
   (i) An electrical corporation that serves less than 500,000
electric retail customers within the state may file with the
commission a request for exemption from this section, which the
commission shall grant upon a showing of good cause.
   (j) (1) Prior to its approval pursuant to Section 851 of any
divestiture of generation assets owned by an electrical corporation
on or after  the date of enactment of the act adding this
section   September 24, 2002,  the commission shall
determine the impact of the proposed divestiture on the electrical
corporation's procurement rates and shall approve a divestiture only
to the extent it finds, taking into account the effect of the
divestiture on procurement rates, that the divestiture is in the
public interest and will result in net ratepayer benefits.
   (2) Any electrical corporation's procurement necessitated as a
result of the divestiture of generation assets on or after 
the effective date of the act adding this subdivision  
September 24, 2002,  shall be subject to the mechanisms and
procedures set forth in this section only if its actual cost is less
than the recent historical cost of the divested generation assets.
   (3) Notwithstanding paragraph (2), the commission may deem
proposed procurement eligible to use the procedures in this section
upon its approval of asset divestiture pursuant to Section 851. 
  SEC. 369.    Section 464 of the Public Utilities Code is
amended to read: 
   464.  (a) Reasonable expenditures by transmission owners that are
electrical corporations to plan, design, and engineer
reconfiguration, replacement, or expansion of transmission facilities
are in the public interest and are deemed prudent if made for the
purpose of facilitating competition in electric generation markets,
ensuring open access and comparable service, or maintaining or
enhancing reliability, whether or not these expenditures are for
transmission facilities that become operational.
   (b) The commission and the  Electricity  
Office of Energy Market  Oversight  Board  
in the Department of Energy  shall jointly facilitate the
efforts of the state's transmission owning electrical corporations to
obtain authorization from the Federal Energy Regulatory Commission
to recover reasonable expenditures made for the purposes stated in
subdivision (a).
   (c)  Nothing in this section alters or affects 
 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 Stat. 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. 370.    Section 848.1 of the Public Utilities Code is
amended to read: 
   848.1.  (a) No later than 120 days after the effective date of
this article, and from time to time thereafter, the recovery
corporation shall apply to the commission for a determination that
some or all of the recovery corporation's recovery costs may be
recovered through fixed recovery amounts, which would be recovery
property under this article, and that any portion of the recovery
corporation's federal and State of California income and franchise
taxes associated with those fixed recovery amounts and not financed
from proceeds of recovery bonds be recovered through fixed recovery
tax amounts. The recovery corporation may request this determination
by the commission in a separate proceeding or in an existing
proceeding, or both. The recovery corporation shall in its
application specify that consumers within its service territory would
benefit from reduced rates on a present value basis through the
issuance of recovery bonds. The commission shall designate fixed
recovery amounts and any associated fixed recovery tax amounts as
recoverable in one or more financing orders if the commission
determines, as part of its findings in connection with the financing
order, that the designation of the fixed recovery amounts and any
associated fixed recovery tax amounts, and the issuance of recovery
bonds in connection with fixed recovery amounts, would reduce the
rates on a present value basis that consumers within the recovery
corporation's service territory would pay if the financing order were
not adopted. Fixed recovery amounts and any associated fixed
recovery tax amounts shall only be imposed on existing and future
consumers in the service territory. Consumers within the service
territory shall continue to pay fixed recovery amounts and any
associated fixed tax recovery amounts until the recovery bonds are
paid in full by the financing entity. Once the recovery bonds have
been paid in full, the payment by consumers of fixed recovery amounts
and fixed recovery tax amounts shall terminate.
   (b) The commission shall establish an effective mechanism that
ensures recovery of recovery costs through fixed recovery amounts and
any associated fixed recovery tax amounts from existing and future
consumers in the service territory, provided that 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   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, 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
  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  
subsequently  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, the Department of Energy  ; nor shall the amount of
revenues arising with respect thereto be subject to reduction,
impairment, postponement, or termination. Except as otherwise
provided in this subdivision, the State of California does hereby
pledge and agree with the recovery corporation, owners of recovery
property, and holders of recovery bonds that the state shall neither
limit nor alter the fixed recovery amounts, any associated fixed
recovery tax amounts, recovery property, financing orders, or any
rights thereunder until the recovery bonds, together with the
interest thereon, are fully paid and discharged, and any associated
fixed recovery tax amounts have been satisfied or, in the
alternative, have been refinanced through an additional issue of
recovery bonds; provided nothing contained in this section shall
preclude the limitation or alteration if and when adequate provision
shall be made by law for the protection of the recovery
                                        corporation, owners, and
holders. The financing entity is authorized to include this pledge
and undertaking for the state in these recovery bonds.
Notwithstanding any other provision of this section, the commission
shall approve adjustments to the fixed recovery amounts and any
associated fixed recovery tax amounts as may be necessary to ensure
timely recovery of all recovery costs that are the subject of the
pertinent financing order, and the costs of capital associated with
the recovery, financing, or refinancing thereof, including servicing
and retiring the recovery bonds contemplated by the financing order.
When setting other rates for the recovery corporation, 
nothing in  this subdivision  shall  
does not  prevent the commission from taking into account either
of the following:
   (1) Any collection of fixed recovery amounts in excess of amounts
actually required to pay recovery costs financed or refinanced by
recovery bonds.
   (2) Any collection of fixed recovery tax amounts in excess of
amounts actually required to pay federal and State of California
income and franchise taxes associated with fixed recovery amounts;
provided that this would not result in a recharacterization of the
tax, accounting, and other intended characteristics of the financing,
including, but not limited to, either of the following:
   (A) Treating the recovery bonds as debt of the recovery
corporation or its affiliates for federal income tax purposes.
   (B) Treating the transfer of the recovery property by the recovery
corporation as a true sale for bankruptcy purposes.
   (h) (1) Financing orders issued under this article do not
constitute a debt or liability of the state or of any political
subdivision thereof, and do not constitute a pledge of the full faith
and credit of the state or any of its political subdivisions, but
are payable solely from the funds provided therefor under this
article and shall be consistent with Sections 1 and 18 of Article XVI
of the California Constitution. This subdivision shall in no way
preclude bond guarantees or enhancements pursuant to this article.
All recovery bonds shall contain on the face thereof a statement to
the following effect: "Neither the full faith and credit nor the
taxing power of the State of California is pledged to the payment of
the principal of, or interest on, this bond."
   (2) The issuance of recovery bonds under this article shall not
directly, indirectly, or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation therefor or to make any appropriation for their payment.
   (i) The commission shall establish procedures for the expeditious
processing of applications for financing orders, including the
approval or disapproval thereof within 120 days of the recovery
corporation making application therefor. The commission shall provide
in any financing order for a procedure for the expeditious approval
by the commission of periodic adjustments to the fixed recovery
amounts and any associated fixed recovery tax amounts that are the
subject of the pertinent financing order, as required by subdivision
(g). The procedure shall require the commission to determine whether
the adjustments are required on each anniversary of the issuance of
the financing order, and at the additional intervals as may be
provided for in the financing order, and for the adjustments, if
required, to be approved within 90 days of each anniversary of the
issuance of the financing order, or of each additional interval
provided for in the financing order.
   (j) Fixed recovery amounts are recovery property when, and to the
extent that, a financing order authorizing the fixed recovery amounts
has become effective in accordance with this article, and the
recovery property shall thereafter continuously exist as property for
all purposes with all of the rights and privileges of this article
for the period and to the extent provided in the financing order, but
in any event until the recovery bonds are paid in full, including
all principal, interest, premium, costs, and arrearages thereon.
   (k) This article and any financing order made pursuant to this
article do not amend, reduce, modify, or otherwise affect the right
of the Department of Water Resources  , or its successor, the
Department of Energy,  to recover its revenue requirements and
to receive the charges that it is to recover and receive pursuant to
Division 27 (commencing with Section 80000) of the Water Code, or
pursuant to any agreement entered into by the commission and the
 Department of Water Resources   department
 pursuant to that division. 
  SEC. 371.    Section 1001 of the Public Utilities Code is
amended to read: 
   1001.   No   (a)     (1)
   A  railroad corporation whose railroad is
operated primarily by electric energy,  or a  street
railroad corporation, gas corporation, electrical corporation,
telegraph corporation, telephone corporation, water corporation, or
sewer system corporation shall  not  begin the construction
of a street railroad, or of a line, plant, or system, or of any
extension thereof, without having first obtained from the commission
a certificate that the present or future public convenience and
necessity require or will require  such   that
 construction. 
   This 
    (2)     This  article shall not be
construed to require any  such  corporation 
described in paragraph (1)  to secure such certificate for an
extension within any city or city and county within which it has
theretofore lawfully commenced operations, or for an extension into
territory either within or without a city or city and county
contiguous to its street railroad, or line, plant, or system, and not
theretofore served by a public utility of like character, or for an
extension within or to territory already served by it, necessary in
the ordinary course of its business. If any public utility, in
constructing or extending its line, plant, or system, interferes or
is about to interfere with the operation of the line, plant, or
system of any other public utility or of the water system of a public
agency, already constructed, the commission, on complaint of the
public utility or public agency claiming to be injuriously affected,
may, after hearing, make  such   an  order
and prescribe  such  terms and conditions for the
location of the lines, plants, or systems affected as  to it
 may seem just and reasonable. 
   (b) Notwithstanding subdivision (a) or any other provision of law,
all responsibilities of the commission with respect to the
certification of an electric transmission line, plant, or system, or
any extension thereof, carrying electricity to the interconnected
grid, or that is part of the interconnected grid, but not including
electric distribution facilities, are hereby transferred to the
exclusive jurisdiction of the California Energy Board within the
Department of Energy. All applications for certification regarding a
line, facility, plant, or system described in this subdivision shall
be heard and decided by the California Energy Board. A decision of
the department or the California Energy Board 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 Board 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 Board and the department.  
  SEC. 372.    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, the Department
of Energy  , the expedited review of  the  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, the Department of Energy,  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. 373.    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 it successor, 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. 374.    Section 1822 of the Public Utilities Code is
amended to read: 
   1822.  (a) Any computer model that is the basis for any testimony
or exhibit in a hearing or proceeding before the commission shall be
available to, and subject to verification by, the commission and
parties to the hearing or proceedings to the extent necessary for
cross-examination or rebuttal, subject to applicable rules of
evidence, except that verification is not required for any
electricity demand model or forecast prepared by the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  pursuant to Section 25309 or 25402.1
of the Public Resources Code and approved and adopted after a hearing
during which testimony was offered subject to cross-examination. The
commission shall afford each of these electricity demand models or
forecasts the evidentiary weight it determines appropriate. 
Nothing in this  This  subdivision 
requires   does not require  the  State
Energy Resources Conservation and Development Commission 
 department  to approve or adopt any electricity demand
model or forecast.
   (b)  Any testimony   Testimony 
presented in a hearing or proceeding before the commission that is
based in whole, or in part, on a computer model shall include a
listing of all the equations and assumptions built into the model.
   (c)  Any data base   A database  that is
used for any testimony or exhibit in a hearing or proceeding before
the commission shall be reasonably accessible to the commission staff
and parties to the hearing or proceeding to the extent necessary for
cross-examination or rebuttal, subject to applicable rules of
evidence, as applied in commission proceedings.
   (d) The commission shall adopt rules and procedures to meet the
requirements specified in subdivisions (a), (b), and (c). These rules
shall include procedural safeguards that protect  data bases
  databases  and models not owned by the public
utility.
   (e) The commission shall establish appropriate procedures for
determining the appropriate level of compensation for a party's
access.
   (f) Each party shall have access to the computer programs and
models of each other party to the extent provided by Section 1822.
The commission shall not require a utility to provide a remote
terminal or other direct physical link to the computer systems of a
utility to a third party.
   (g) The commission shall verify, validate, and review the computer
models of any electric corporation that are used for the purpose of
planning, operating, constructing, or maintaining the corporation's
electricity transmission system, and that are the basis for testimony
and exhibits in hearings and proceedings before the commission.
   (h) The transmission computer models shall be available to, and
subject to verification by, each party to a commission proceeding in
accordance with subdivision (a) of Section 1822, and regulations
adopted pursuant to subdivision (d) of Section 1822. 
  SEC. 375.    Section 2774.6 of the Public Utilities Code
is amended to read: 
   2774.6.  The commission, in consultation with the  State
Energy Resources Conservation and Development Commission 
 Department of Energy  , shall develop a program for
residential and commercial customer air-conditioning load control, as
an element of each electrical corporation's tariffed service
offerings paid for with electric rates. The goal of the program shall
be to contribute to the adequacy of electricity supply and to help
customers reduce their electric bills in a cost-effective manner. The
program may include peak load reduction programs for residential and
commercial air-conditioning systems, if the commission determines
that the inclusion would be cost-effective. 
  SEC. 376.    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, 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, 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   is  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. 377.    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 combined with net surplus compensation,
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, reduce interconnection and administrative costs for electricity
suppliers, and encourage conservation and efficiency.
   (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 utility" means an electrical corporation, a local
publicly owned electric utility, or an electrical cooperative, or any
other entity, except an electric service provider, that offers
electrical service. This section shall 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 electric
utility, 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, and 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
subdivisions (c) and (h).
   (6) "Net surplus customer-generator" means an eligible
customer-generator that generates more electricity during a 12-month
period than is supplied by the electric utility to the eligible
customer-generator during the same 12-month period.
   (7) "Net surplus electricity" means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed by
that eligible customer-generator.
   (8) "Net surplus electricity compensation" means a per
kilowatthour rate offered by the electric utility to the net surplus
customer-generator for net surplus electricity that is set by the
ratemaking authority pursuant to subdivision (h).
   (9) "Ratemaking authority" means, for an electrical corporation or
electrical cooperative, 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.
   (10) "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 electric utility 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 electric
utility'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 eligible customer-generator, at the expense
of the electric utility, and the additional metering shall be used
only to provide the information necessary to accurately bill or
credit the eligible 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 eligible
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. An eligible customer-generator
that is receiving service other than through the standard contract or
tariff may elect to receive service through the standard contract or
tariff until the electric utility reaches the generation limit set
forth in this paragraph. Once the generation limit is reached, only
eligible customer-generators that had previously elected to receive
service pursuant to the standard contract or tariff have a right to
continue to receive service pursuant to the standard contract or
tariff. Eligibility for net energy metering does not limit an
eligible customer-generator's eligibility for any other rebate,
incentive, or credit provided by the electric utility, or pursuant to
any governmental program, including rebates and incentives provided
pursuant to the California Solar Initiative.
   (2) (A) On an annual basis, beginning in 2003, every electric
utility 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 and the net surplus electricity purchased by
the electric utility pursuant to this section.
   (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 eligible customer-generator has net energy metering.
   (C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electric
utilities, and for using that information to determine when, pursuant
to paragraphs (1) and (3), an electric utility is not obligated to
provide net energy metering to additional eligible
customer-generators in its service area.
   (3) An electric utility is not obligated to provide net energy
metering to additional eligible customer-generators in its service
area when the combined total peak demand of all electricity used by
eligible customer-generators served by all the electric utilities in
that service area furnishing net energy metering to eligible
customer-generators exceeds 2.5 percent of the aggregate customer
peak demand of those electric utilities.
   (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 electric utility shall make all necessary forms and
contracts for net energy metering and net surplus electricity
compensation service available for download from the Internet.
   (e) (1) Every electric utility shall ensure that requests for
establishment of net energy metering and net surplus electricity
compensation 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 or net surplus
electricity compensation, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction.
   (2) Every electric utility 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 electric utility 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 electric utility that provides distribution
service for the eligible customer-generator is not obligated to
provide net energy metering or net surplus electricity compensation
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 electric utility 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 and net surplus electricity
compensation 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 eligible customer-generator's choice as
to from 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   is  contrary to the intent
of this section, and shall not form a part of net energy metering
contracts or tariffs.
   (h) For eligible 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 electric utility, and at each
anniversary date thereafter, be billed for electricity used during
that 12-month period. The electric utility shall determine if the
eligible residential or small commercial customer-generator was a net
consumer or a net surplus customer-generator during that period.
   (2) At the end of each 12-month period, where the electricity
supplied during the period by the electric utility 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 electric utility 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,
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 electric utility 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 electric
utility 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, 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, 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 electric utility 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, 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 electric utility 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 electric
utility'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 commercial, industrial, or agricultural
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 electric utility
during that same period, the eligible customer-generator is a net
surplus customer-generator and the electric utility shall, upon an
affirmative election by the eligible customer-generator, either (A)
provide net surplus electricity compensation for any net surplus
electricity generated during the prior 12-month period, or (B) allow
the eligible customer-generator to apply the net surplus electricity
as a credit for kilowatthours subsequently supplied by the electric
utility to the surplus customer-generator. For an eligible
customer-generator that does not affirmatively elect to receive
service pursuant to net surplus electricity compensation, the
electric utility shall retain any excess kilowatthours generated
during the prior 12-month period. The eligible customer-generator not
affirmatively electing to receive service pursuant to net surplus
electricity compensation shall not be owed any compensation for the
net surplus electricity unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatthours. Every electric utility shall, by January 31,
2010, provide notice to eligible customer-generators that they are
eligible to receive net surplus electricity compensation for net
surplus electricity, that they must elect to receive net surplus
electricity compensation, and that the 12-month period commences when
the electric utility receives the eligible customer-generator's
election. The commission may, for an electric utility that is an
electrical corporation or electrical cooperative, adopt requirements
for providing notice and the manner by which eligible
customer-generators may elect to receive net surplus electricity
compensation.
   (4) (A) The ratemaking authority shall, by January 1, 2011,
establish a net surplus electricity compensation valuation to
compensate the net surplus customer-generator for the value of net
surplus electricity generated by the net surplus customer-generator.
The commission shall establish the valuation in a ratemaking
proceeding. The ratemaking authority for a local publicly owned
electric utility shall establish the valuation in a public
proceeding. The net surplus electricity compensation valuation shall
be established so as to provide the net surplus customer-generator
just and reasonable compensation for the value of net surplus
electricity, while leaving other ratepayers unaffected. The
ratemaking authority shall determine whether the compensation will
include, where appropriate justification exists, either or both of
the following components:
   (i) The value of the electricity itself.
   (ii) The value of the renewable attributes of the electricity.
   (B) In establishing the rate pursuant to subparagraph (A), the
ratemaking authority shall ensure that the rate does not result in a
shifting of costs between solar customer-generators and other bundled
service customers.
   (5) (A) Upon adoption of the net surplus electricity compensation
rate by the ratemaking authority, any renewable energy credit, as
defined in Section 399.12, for net surplus electricity purchased by
the electric utility shall belong to the electric utility. Any
renewable energy credit associated with electricity generated by the
eligible customer-generator that is utilized by the eligible
customer-generator shall remain the property of the eligible
customer-generator.
   (B) Upon adoption of the net surplus electricity compensation rate
by the ratemaking authority, the net surplus electricity purchased
by the electric utility shall count toward the electric utility's
renewables portfolio standard annual procurement targets for the
purposes of paragraph (1) of subdivision (b) of Section 399.15, or
for a local publicly owned electric utility, the renewables portfolio
standard annual procurement targets established pursuant to Section
387.
   (6) The electric utility shall provide every eligible residential
or small commercial customer-generator with net electricity
consumption and net surplus electricity generation information with
each regular bill. That information shall include the current
monetary balance owed the electric utility for net electricity
consumed, or the net surplus electricity generated, since the last
12-month period ended. Notwithstanding this subdivision, an electric
utility shall permit that customer to pay monthly for net energy
consumed.
   (7) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric utility, the electric utility 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.
   (8) If an electric service provider or electric utility 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 electric utility, the 12-month period,
with respect to that new electric service provider or electric
utility, shall commence on the date on which the new electric service
provider or electric utility 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 electric utility 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.
   (l) A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources  , or its successor, the Department of Energy  for
all charges that would otherwise be imposed on the customer by the
commission to recover bond-related costs pursuant to an agreement
between the commission and the Department of Water Resources  ,
or its successor, the Department of Energy,  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 (l),
an eligible customer-generator shall not be required to replace its
existing meter except as set forth in paragraph (1) of subdivision
(c), nor shall the electric utility 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, including net surplus electricity
compensation, 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. 378.    Section 9502 of the Public Utilities Code is
amended to read: 
   9502.  On or before December 1, 1994, and on a biennial basis
thereafter, each publicly owned electric and gas utility shall submit
a report to the  State Energy Resources Conservation and
Development Commission   Departm   ent of
Energy  describing the status of their low-income weatherization
programs required by Sections 9500 and 9501. Thereafter, as part of
the biennial conservation report prepared pursuant to Section 25401.1
of the Public Resources Code, the commission shall report to the
Legislature summarizing publicly owned utility efforts to comply with
Sections 9500 and 9501. 
  SEC. 379.    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. 
All matter omitted in this version of the bill appears in the bill as
amended in the Assembly, May 19, 2009. (JR11)