BILL NUMBER: AB 1303 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 7, 2011
AMENDED IN SENATE JUNE 29, 2011
AMENDED IN ASSEMBLY APRIL 25, 2011
AMENDED IN ASSEMBLY APRIL 13, 2011
INTRODUCED BY Assembly Member Williams
FEBRUARY 18, 2011
An act to amend Sections 25620.15, 25740.5, and 25742 of
Section 25740.5 of, to repeal Section 25620.11 of, and
to repeal and add Sections 25620.1 and 25620.2 of, the Public
Resources Code, and to amend Section 399.8 of the Public
Utilities Code, relating to energy resources, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 1303, as amended, Williams. Energy programs.
Under existing law the Public Utilities
Act (act) , the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations. Existing law requires the PUC to require the 3 largest
electrical corporations in the state , until January 1, 2012,
to identify a separate electrical rate component to fund energy
efficiency, renewable energy, and research, development and
demonstration programs. Existing law requires the PUC or the
electrical corporations to collect $65,000,000 in total per year for
renewable energy and $62,500,000 in total per year for
research, development, and demonstration. A violation of the act is a
crime.
This bill would extend this requirement to January 1, 2020. The
bill would increase the amount collected to $90,000,000 for each of
the above purposes. Because a violation of the act is a crime, this
bill would impose a state-mandated local program.
Existing law establishes the Renewable Resource Trust Fund in the
state State Treasury as a fund that is
continuously appropriated, with certain exceptions , for
administrative expenses incurred by the State Energy Resources
Conservation and Development Commission (Energy Commission), for the
implementation of the renewable resources programs. Existing law
requires that specified portions of the moneys collected as a part of
the electrical rate to fund renewable energy programs be deposited
into specified accounts within the fund. Existing law
authorizes, until January 1, 2012, the expenditure of the moneys from
the fund for the implementation of renewable resources programs.
Existing law specifies legislative recommendations on the allocation
of moneys in the fund. Existing law further requires
that 20% of the funds collected pursuant to the renewable energy
public good charge be deposited into the Existing Renewable Resources
Account within the fund to be used for programs that are designed to
achieve fully competitive and self-sustaining existing in-state
renewable electricity generation facilities, and to secure for the
state the environmental, economic, and reliability benefits that
continued operation of those facilities will provide during the
2007-2011 investment cycle.
This bill would require that 20% of the funds collected pursuant
to that renewable energy public good charge be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2012-2020 investment cycle. By extending the authority of
the Energy Commission to expend money pursuant to a continuously
appropriated fund, the bill would make an appropriation.
This bill would extend to January 1, 2020, the authorization to
expend moneys in the Renewable Resource Trust Fund for the
implementation of renewable resources programs, thereby making an
appropriation. The bill would revise and recast the legislative
recommendations on the allocation of the moneys in the fund.
Existing law requires that money collected as a part of
the electrical rate for public interest research, development, and
demonstration programs be transferred to the Public Interest
Research, Development, and Demonstration Fund and, until January 1,
2012, upon appropriation by the Legislature, be expended by
the Energy Commission to implement the Public Interest Research,
Development, and Demonstration Program to develop and help bring
to market energy technologies that provide increased environmental
benefits, greater system reliability, and lower system
costs .
This bill would extend, to January 1, 2020, this
authority to expend the money collected for public interest research,
development, and demonstration programs that is transferred to
revise and recast the Public Interest Research,
Development, and Demonstration Fund Program
.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25620.15 of the Public
Resources Code is amended to read:
25620.15. (a) In order to ensure that prudent investments in
research, development, and demonstration of energy efficient
technologies continue to produce substantial economic, environmental,
public health, and reliability benefits, it is the policy of the
state and the intent of the Legislature that funds made available,
upon appropriation, for energy related public interest research,
development, and demonstration programs shall be used to advance
science or technology that is not adequately provided by competitive
and regulated markets.
(b) Notwithstanding any other provision of law, money collected
for public interest research, development, and demonstration pursuant
to Section 399.8 of the Public Utilities Code shall be transferred
to the Public Interest Research, Development, and Demonstration Fund.
Money collected between January 1, 2007, and January 1, 2020, shall
be used for the purposes specified in this chapter.
(c) In lieu of the Public Utilities Commission retaining funds
authorized pursuant to Section 381 of the Public Utilities Code for
investments made by electrical corporations in public interest
research, development, and demonstration projects for transmission
and distribution functions, up to 10 percent of the funds transferred
to the commission pursuant to subdivision (b) shall be awarded to
electrical corporations for public interest research, development,
and demonstration projects for transmission and distribution
functions consistent with the policies and subject to the
requirements of this chapter.
SEC. 2. Section 25740.5 of the Public Resources
Code is amended to read:
25740.5. (a) The commission 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 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, 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. The commission may require financial
disclosure from applicants for purposes of this paragraph.
(5) Specified fuel cell technologies, if the commission 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 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 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, 2020, shall
be used for the purposes specified in this chapter.
SEC. 3. Section 25742 of the Public Resources
Code is amended to read:
25742. (a) Twenty percent of the funds collected pursuant to the
renewable energy public goods charge shall be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2012-2020 investment cycle. Eligibility for production
incentives under this section shall be limited to those technologies
found eligible for funds by the commission pursuant to paragraphs
(3), (4), and (6) of subdivision (e) of Section 25740.5.
(b) Any funds used to support in-state renewable electricity
generation facilities pursuant to this section shall be expended in
accordance with the provisions of this chapter.
(c) Facilities that are eligible to receive funding pursuant to
this section shall be registered in accordance with criteria
developed by the commission and those facilities shall not receive
payments for any electricity produced that has any of the following
characteristics:
(1) Is sold at monthly average rates equal to, or greater than,
the applicable target price, as determined by the commission.
(2) Is used onsite.
(d) (1) Existing facilities generating electricity from biomass
energy shall be eligible for funding and otherwise considered an
in-state renewable electricity generation facility only if they
report to the commission the types and quantities of biomass fuels
used.
(2) The commission shall report the types and quantities of
biomass fuels used by each facility to the Legislature in the reports
prepared pursuant to Section 25748.
(e) Each existing facility seeking an award pursuant to this
section shall be evaluated by the commission to determine the amount
of the funds being sought, the cumulative amount of funds the
facility has received previously from the commission and other state
sources, the value of any past and current federal or state tax
credits, the facility's contract price for energy and capacity, the
prices received by similar facilities, the market value of the
facility, and the likelihood that the award will make the facility
competitive and self-sustaining within the 2012-2020 investment
cycle. The commission shall use this evaluation to determine the
value of an award to the public relative to other renewable energy
investment alternatives. The commission shall compile its findings
and report them to the Legislature in the reports prepared pursuant
to Section 25748.
SECTION 1. (a) It is the intent of the Legislature
that the funds generated from the nonbypassable system benefits
charge collected pursuant to Section 399.8 of the Public Utilities
Code should not be appropriated for use in the General Fund and
should be used only for the purposes specified in that section.
(b) It is the further intent of the Legislature that funds
generated from the nonbypassable system benefits charge collected
pursuant to Section 399.8 of the Public Utilities Code should not be
available for programs within a service territory of a local publicly
owned electric utility unless that utility contributes at least 33
percent of its public benefits program funds or similar funds
collected by that utility.
SEC. 2. Section 25620.1 of the Public
Resources Code is repealed.
25620.1. (a) The commission shall develop, implement, and
administer the Public Interest Research, Development, and
Demonstration Program that is hereby created. The program shall
include a full range of research, development, and demonstration
activities that, as determined by the commission, are not adequately
provided for by competitive and regulated markets. The commission
shall administer the program consistent with the policies of this
chapter.
(b) The general goal of the program is to develop, and help bring
to market, energy technologies that provide increased environmental
benefits, greater system reliability, and lower system costs, and
that provide tangible benefits to electric utility customers through
the following investments:
(1) Advanced transportation technologies that reduce air pollution
and greenhouse gas emissions beyond applicable standards, and that
benefit electricity and natural gas ratepayers.
(2) Increased energy efficiency in buildings, appliances,
lighting, and other applications beyond applicable standards, and
that benefit electric utility customers.
(3) Advanced electricity generation technologies that exceed
applicable standards to increase reductions in greenhouse gas
emissions from electricity generation, and that benefit electric
utility customers.
(4) Advanced electricity technologies that reduce or eliminate
consumption of water or other finite resources, increase use of
renewable energy resources, or improve transmission or distribution
of electricity generated from renewable energy resources.
(c) To achieve the goals established in subdivision (b), the
commission shall adopt a portfolio approach for the program that does
all of the following:
(1) Effectively balances the risks, benefits, and time horizons
for various activities and investments that will provide tangible
energy or environmental benefits for California electricity
customers.
(2) Emphasizes innovative energy supply and end use technologies,
focusing on their reliability, affordability, and environmental
attributes.
(3) Includes projects that have the potential to enhance
transmission and distribution capabilities.
(4) Includes projects that have the potential to enhance the
reliability, peaking power, and storage capabilities of renewable
energy.
(5) Demonstrates a balance of benefits to all sectors that
contribute to the funding under Section 399.8 of the Public Utilities
Code.
(6) Addresses key technical and scientific barriers.
(7) Demonstrates a balance between short-term, mid-term, and
long-term potential.
(8) Ensures that prior, current, and future research not be
unnecessarily duplicated.
(9) Provides for the future market utilization of projects funded
through the program.
(10) Ensures an open project selection process and encourages the
awarding of research funding for a diverse type of research as well
as a diverse award recipient base and equally considers research
proposals from the public and private sectors.
(11) Coordinates with other related research programs.
(d) The term "award," as used in this chapter, may include, but is
not limited to, contracts, grants, interagency agreements, loans,
and other financial agreements designed to fund public interest
research, demonstration, and development projects or programs.
SEC. 3. Section 25620.1 is added to the
Public Resources Code , to read:
25620.1. (a) The Legislature finds and declares that in order to
ensure that electricity users receive reliable, affordable, safe, and
environmentally sustainable electrical service, it is essential that
prudent investments specifically designed to improve the economic
performance and lower the environmental costs of the distribution,
transmission, generation, and end-use systems that serve California
electricity users, and that are not adequately provided by
competitive and regulated markets, be made in the following areas:
(1) Research, development and, demonstration projects that
contribute to integration of distributed generation into the
electricity grid, technological improvements in renewable energy
generation, energy efficiency, and energy demand management, provide
scientific information related to the impacts of electrical energy
generation and usage on the environment and methods to reduce those
impacts, or provide other scientific or technological information
that provides specific benefits to electricity users.
(2) Energy efficiency investments that improve overall system
performance and reliability and that lower costs of generating,
distributing, transmitting, and using electricity in homes,
businesses, and public agencies.
(3) Investments in the development, deployment, and operation of
clean energy resources that contribute to meeting the requirements of
the California Renewables Portfolio Standard (Article 16 (commencing
with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the
Public Utilities Code). Eligible investments include support for
emerging renewable technologies that have potential in distributed
generation application, rebates, financing assistance, or equivalent
incentives to overcome barriers to commercial manufacturing or
deployment of renewable technologies and support for existing
renewable energy generation that contributes to achievement of the
requirements of the California Renewables Portfolio Standard (Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code.
(4) Public education, workforce training, or other investments
necessary to overcome market barriers or institutional limitations
for the effective deployment of energy efficiency, clean energy, or
renewable technologies.
(b) The expenditures made pursuant to this chapter shall be
designed to provide specific benefits to electricity users that over
time and in the aggregate are cost-effective and ensure more reliable
and sustainable energy service for electricity users.
SEC. 4. Section 25620.2 of the Public
Resources Code is repealed.
25620.2. (a) To ensure the efficient implementation and
administration of the Public Interest Research, Development, and
Demonstration Program, the commission shall do both of the following:
(1) Develop procedures for the solicitation of award applications
for project or program funding, and to ensure efficient program
management.
(2) Evaluate and select programs and projects, based on merit,
that will be funded under the program.
(b) The commission shall adopt regulations to implement the
program, in accordance with the following procedures:
(1) Prepare a preliminary text of the proposed regulation and
provide a copy of the preliminary text to any person requesting a
copy.
(2) Provide public notice of the proposed regulation to any person
who has requested notice of the regulations prepared by the
commission. The notice shall contain all of the following:
(A) A clear overview explaining the proposed regulation.
(B) Instructions on how to obtain a copy of the proposed
regulations.
(C) A statement that if a public hearing is not scheduled for the
purpose of reviewing a proposed regulation, any person may request,
not later than 15 days prior to the close of the written comment
period, a public hearing conducted in accordance with commission
procedures.
(3) Accept written public comments for 30 calendar days after
providing the notice required in paragraph (2).
(4) Certify that all written comments were read and considered by
the commission.
(5) Place all written comments in a record that includes copies of
any written factual support used in developing the proposed
regulation, including written reports and copies of any transcripts
or minutes in connection with any public hearings on the adoption of
the regulation. The record shall be open to public inspection and
available to the courts.
(6) Provide public notice of any substantial revision of the
proposed regulation at least 15 days prior to the expiration of the
deadline for public comments and comment period using the procedures
provided in paragraph (2).
(7) Conduct public hearings, if a hearing is requested by an
interested party, that shall be conducted in accordance with
commission procedures.
(8) Adopt any proposed regulation at a regularly scheduled and
noticed meeting of the commission. The regulation shall become
effective immediately unless otherwise provided by the commission.
(9) Publish any adopted regulation in a manner that makes copies
of the regulation easily available to the public. Any adopted
regulation shall also be made available on the Internet. The
commission shall transmit a copy of an adopted regulation to the
Office of Administrative Law for publication, or, if the commission
determines that printing the regulation is impractical, an
appropriate reference as to where a copy of the regulation may be
obtained.
(10) Notwithstanding any other provision of law, this subdivision
provides an interim exception from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code for regulations required to implement Sections
25620.1 and 25620.2 that are adopted under the procedures specified
in this subdivision.
(11) This subdivision shall become inoperative on January 1, 2012,
unless a later enacted statute deletes or extends that date.
However, after January 1, 2012, the commission is not required to
repeat any procedural step in adopting a regulation that has been
completed before January 1, 2012, using the procedures specified in
this subdivision.
SEC. 5. Section 25620.2 is added to the
Public Resources Code , to read:
25620.2. (a) The commission shall develop, implement, and
administer the Public Interest Research, Development, and
Demonstration Program to achieve the objectives of paragraph (1) of
subdivision (a) of Section 25620.1. The program shall include a full
range of research, development, and demonstration activities that, as
determined by the commission, are not adequately provided for by
competitive and regulated markets. The commission shall administer
the program consistent with the policies of this chapter.
(b) The general goal of the program is to research, develop, and
deploy energy technologies and scientific information that are
designed to provide increased environmental benefits, greater system
reliability, and lower system costs, to assist in meeting the
requirements of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code and the California Renewables Portfolio Standard Program
(Article 15 (commencing with Section 399.11) of Chapter 2.3 of Part 1
of Division 1 of the Public Utilities Code) or to provide other
tangible benefits to electric utility customers. Priority areas for
research and development investment include, but are not limited to,
the following areas:
(1) Advanced distributed generation and energy storage
technologies.
(2) Renewable energy technologies and their integration into the
electrical grid, including forecasting of availability of renewable
energy generation.
(3) Advanced transportation technology and fueling infrastructure.
(4) Energy reduction, efficiency, and management technologies
including net-zero building design; smart grid technologies; and
commercial, industrial, and residential energy efficiency
technologies, and management strategies.
(5) Energy generation and management technologies that reduce or
eliminate consumption of water or other finite resources, allow
increased use of renewable energy resources, or improve transmission
or distribution of electricity generated from renewable energy
resources.
(6) Research and modeling of the impacts of energy generation and
consumption on the environment and methods to reduce the costs of
mitigating those impacts.
(c) To achieve the goals established in subdivision (b), the
commission shall adopt a portfolio approach for the program that does
all of the following:
(1) Coordinates with other research and development efforts and
avoids wasteful duplication.
(2) Directs investments to California-based entities unless the
goals of this chapter can be met only by investing in out-of-state
entities.
(3) Evaluates projects on their potential to achieve technological
breakthroughs or provide information needed to address key
technical, economic, environmental, or scientific barriers.
(4) Emphasizes innovative energy supply and end-use technologies,
focusing on their reliability, affordability, and environmental
attributes.
(5) Includes projects that have the potential to enhance the
reliability and storage capabilities of renewable energy.
(6) Provides multiple system benefits and demonstrates a balance
of benefits to all sectors that contribute to the funding under
Section 399.8 of the Public Utilities Code.
(7) Demonstrates a balance between short-term, mid-term, and
long-term potential.
(8) Provides for the future market utilization of projects funded
through the program, including commercialization plans, where
feasible, for larger grants and development projects.
(9) Limits administrative and overhead costs and maximizes direct
investment in research and development activities. Program
administrative costs shall be limited to no more than 15 percent of
total program expenditures.
(10) Ensures an open project selection process and encourages the
awarding of research funding for diverse types of research, as well
as a diverse award recipient base, and equally considers research
proposals from the public and private sectors.
(d) To ensure the efficient implementation and administration of
the Public Interest Research, Development, and Demonstration Program,
the commission shall do all of the following:
(1) Develop procedures to solicit award applications for project
or program funding, and to ensure efficient program management.
(2) Evaluate and select programs and projects, based on merit,
that will be funded under the program.
(3) Establish appropriate terms for accrual of royalties and
intellectual property rights by the state from activities funded by
this program.
(4) Develop streamlined application and grant procedures for
time-sensitive applied research projects.
(e) The commission shall publicly adopt guidelines to implement
the program.
(f) The commission shall, in accordance with this chapter, develop
and update a strategic plan to guide investments under this program.
The strategic plan shall be updated not less than every three years.
(g) (1) The commission shall establish an advisory committee to
help develop and review the strategic plan and to make
recommendations regarding project and research priorities. The
advisory committee shall meet not less than twice per year.
(2) The advisory committee shall include representatives of the
Public Utilities Commission, environmental groups, consumer groups,
electrical corporations, clean technology companies, investors,
business
associations, and technical experts.
(3) Three members of the Senate, appointed by the Senate President
pro Tempore, and three members of the Assembly, appointed by the
Speaker of the Assembly, may meet with the advisory board and
participate in its activities to the extent that such participation
is not incompatible with their respective positions as Members of the
Legislature.
SEC. 6. Section 25620.11 of the Public
Resources Code is repealed.
25620.11. (a) The commission shall regularly convene an advisory
board that shall make recommendations to guide the commission's
selection of programs and projects to be funded under this chapter.
The advisory board shall include as appropriate, but not be limited
to, representatives from the Public Utilities Commission, consumer
organizations, environmental organizations, and electrical
corporations subject to the funding requirements of Section 381 of
the Public Utilities Code.
(b) Three members of the Senate, appointed by the Senate President
Pro Tempore, and three members of the Assembly, appointed by the
Speaker of the Assembly, may meet with the advisory board and
participate in its activities to the extent that such participation
is not incompatible with their respective positions as Members of the
Legislature.
SEC. 7. Section 25740.5 of the Public
Resources Code , as amended by Section 5 of Chapter 1 of
the First Extraordinary Session of 2011, is amended to read:
25740.5. (a) The commission shall optimize public investment
and ensure that the most cost-effective and efficient
investments in to promote renewable energy
resources are vigorously pursued technologies
that provide maximum system benefits and promote job development
while minimizing environmental and other impacts .
(b) The commission's long-term goal shall be a fully competitive
and self-sustaining supply of electricity generated from renewable
sources.
(b) The program shall promote demonstration and commercialization
of renewable energy and grid integration technologies that provide a
diverse, reliable, and environmentally sustainable portfolio of
renewable energy sources, including, but not limited to, distributed
generation, energy storage, existing and advanced biomass, and other
clean energy technologies.
(c) The program objective shall be to increase, in the near term,
the quantity of California's electricity generated by eligible
renewable electrical generation facilities located in this
state, 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, 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. The commission may require financial
disclosure from applicants for purposes of this paragraph.
(5) Specified fuel cell technologies, if the commission 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 finds
that the existing wind-generating resources are a cost-effective
source of reliable energy and environmental benefits compared with
other renewable electrical generation facilities located in this
state, and that the existing wind-generating resources require
financial assistance to remain economically viable. The commission
may require financial disclosure from applicants for the purposes of
this paragraph.
(1) Distributed generation incentives and projects to assist in
meeting the goal of 12,000 megawatts of installed distributed
generation capacity with a focus on generation technologies that
provide multiple benefits, including improved system reliability,
load management, and reduction in air pollution and greenhouse gas
emissions.
(2) Energy storage technologies that will complement renewable
energy generation facilities and maximize system benefits.
(3) Extension and updating of the New Solar Homes Partnership
(NSHP), in coordination with the Public Utilities Commission, with
funding linked to construction levels and with consideration of the
following additions and modifications:
(A) Priority given for NSHP developments in economically
distressed and disadvantaged communities.
(B) Inclusion of solar hot water heating.
(C) Pilot projects for multifamily units.
(D) Increased accountability, streamlined application process, and
extension of the allowable reservation period.
(4) On-farm renewable energy generation, including demonstration
and pilot projects, technical assistance, financing, and other
incentives for any of the following:
(A) Dairy digesters.
(B) Biogas generation.
(C) Conversion of diesel generators to renewable energy for water
pumping and other onsite energy needs.
(D) Solar hot water heaters.
(5) Biomass generation, including any of the following:
(A) Extension of funding for existing utility scale biomass
facilities until utility contracts are modified to reflect production
and operating costs.
(B) Grants for facility modification or fuel collection that
reduces air pollution impacts.
(C) Evaluation and development of incentives or demonstration
projects, as appropriate, for community scale biomass facilities,
including community scale biomass that promotes sustainable forestry
by reducing excessive fuel loads to create a more resilient forest
condition.
(6) Incentives or other financial assistance to overcome obstacles
for expansion or location of renewable energy manufacturing
facilities in California, including consideration of all of the
following:
(A) Incentives for purchase of clean energy technologies or
components manufactured in California.
(B) Leveraged financial assistance, such as loan loss reserves,
warranty assistance, or other financial tools, to assist in
overcoming barriers to bringing emerging renewable technologies to
market.
(C) Demonstration and deployment programs to bring the most
promising Public Interest Research, Development, and Demonstration
Program to commercialization.
(7) Funding for programs to train skilled workers for renewable
energy occupations.
(8) Renewable energy siting assistance including:
(A) Reimbursement for counties pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code for lands subject to the Williamson Act (Chapter 7
(commencing with Section 51200) of Part 1 of Division 1 of Title 5 of
the Government Code) that are converted to renewable energy
generation.
(B) Other projects that contribute to timely siting of renewable
energy facilities, including for distributed generation.
(f) Notwithstanding any other 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
2012 , and January 1, 2012 2020
, shall be used for the purposes specified in this chapter.
SEC. 8. 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
2020 . 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) ninety million dollars ($90,000,000)
in total per year for renewable energy, and sixty-two
million five hundred thousand dollars ($62,500,000)
ninety million dollars ($90,000,000) 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 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 shall retain and
continue their oversight responsibilities as set forth in Sections
381 and 383, 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. 9. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 4. SEC. 10. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to prevent interruption of the funding and administration
of programs funded through the public goods charge and to reform
administration of those programs to better serve the needs of
ratepayers and the persons participating in those programs, it is
necessary for this act to take effect immediately.