BILL NUMBER: AB 2227	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bradford

                        FEBRUARY 24, 2012

   An act to add Sections 25305.1 and 25305.2 to the Public Resources
Code, and to amend Sections 398.2, 398.3, 398.4, 398.5, 399.30,
2836, and 9615 of, to amend and renumber Sections 385.2 and 387.5 of,
to add Sections 9504, 9505, 9506, 9506.5, 9507, and 9508 to, and to
repeal and add Section 2839 of, the Public Utilities Code, relating
to electricity.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2227, as introduced, Bradford. Local publicly owned electric
utilities: State Energy Resources Conservation and Development
Commission: reporting.
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined, while local publicly owned electric
utilities, as defined, are under the direction of their governing
board. Existing law requires a local publicly owned electric utility
to report various matter to its consumers and the State Energy
Resources Conservation and Development Commission (Energy Commission)
relative to energy efficiency, renewable energy resources, the
California Solar Initiative, and energy source content.
   This bill would recast and revise the above-described reporting
requirements into a division of the Public Utilities Code that is
applicable to publicly owned utilities.
   Existing law requires the Energy Commission, beginning November 1,
2003, and every 2 years thereafter, to adopt an integrated energy
policy report which includes an overview of major energy trends and
issues facing the state. Existing law requires the Energy Commission
to include certain information relative to local publicly owned
electric utilities in the integrated energy policy report.
   This bill would recast certain requirements relative to
information about local publicly owned electric utilities that the
Energy Commission is required to include in the integrated energy
policy report into that portion of the Public Resources Code that
concerns the integrated energy policy report.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 25305.1 is added to the Public Resources Code,
to read:
   25305.1.  The commission shall report to the Legislature, to be
included in each integrated energy policy report prepared pursuant to
Section 25302, regarding the progress made by each local publicly
owned electric utility serving end-use customers in meeting the
requirements of Section 9620 of the Public Utilities Code.
  SEC. 2.  Section 25305.2 is added to the Public Resources Code, to
read:
   25305.2.  The commission shall include a summary of the
information reported pursuant to subdivisions (d) and (e) of Section
9505 of the Public Utilities Code in the integrated energy policy
report prepared pursuant to Section 25302. The commission shall also
include, for each local publicly owned electric utility, a comparison
of the local publicly owned electric utility's annual targets
established in accordance with that section, and the local publicly
owned electric utility's actual energy efficiency savings and demand
reductions. If the commission determines that improvements can be
made in either the level of a local publicly owned electric utility's
annual targets to achieve all cost-effective, reliable, and feasible
energy savings and demand reductions and to enable local publicly
owned electric utilities, in the aggregate, to achieve statewide
targets established pursuant to Section 25310, or in meeting each
local publicly owned electric utility's annual targets, the
commission shall provide recommendations to the local publicly owned
electric utility, the Legislature, and the Governor on those
improvements.
  SEC. 3.  Section 385.2 of the Public Utilities Code is amended and
renumbered to read: 
   385.2.  (a) 
    9503.   Upon the completion and promulgation of
regulations pursuant to subdivision (a) of Section 25943 of the
Public Resources Code, each governing body of a local publicly owned
electric utility, as defined in Section 224.3, shall be responsible
for implementing an energy efficiency program that recognizes the
intent of the Legislature to encourage energy savings and greenhouse
gas emission reductions in existing residential and nonresidential
buildings, while taking into consideration the effect of the program
on rates, reliability, and financial resources. 
   (b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
 
   (1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.  
   (2) The net energy savings from energy efficiency improvements
installed pursuant to this section. 
  SEC. 4.  Section 387.5 of the Public Utilities Code is amended and
renumbered to read:
   387.5.   2854.   (a) In order to further
the state goal of encouraging the installation of 3,000 megawatts of
photovoltaic solar energy in California within 10 years, the
governing body of a local publicly owned electric utility that sells
electricity at retail, shall adopt, implement, and finance a solar
initiative program, funded in accordance with subdivision (b), for
the purpose of investing in, and encouraging the increased
installation of, residential and commercial solar energy systems.
   (b) On or before January 1, 2008, a local publicly owned electric
utility shall offer monetary incentives for the installation of solar
energy systems of at least two dollars and eighty cents ($2.80) per
installed watt, or for the electricity produced by the solar energy
system, measured in kilowatthours, as determined by the governing
board of a local publicly owned electric utility, for photovoltaic
solar energy systems. The incentive level shall decline each year
thereafter at a rate of no less than an average of 7 percent per
year.
   (c) A local publicly owned electric utility shall initiate a
public proceeding to fund a solar energy program to adequately
support the goal of installing 3,000 megawatts of photovoltaic solar
energy in California. The proceeding shall determine what additional
funding, if any, is necessary to provide the incentives pursuant to
subdivision (b). The public proceeding shall be completed and the
comprehensive solar energy program established by January 1, 2008.
   (d) The solar energy program of a local publicly owned electric
utility shall be consistent with all of the following:
   (1) That a solar energy system receiving monetary incentives
comply with the eligibility criteria, design, installation, and
electrical output standards or incentives established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 25782 of the Public Resources Code.
   (2) That solar energy systems receiving monetary incentives are
intended primarily to offset part or all of the consumer's own
electricity demand.
   (3) That 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) That 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) That the solar energy system be located on the same premises
of the end-use consumer where the consumer's own electricity demand
is located.
   (6) That the solar energy system be connected to the electric
utility's electrical distribution system within the state.
   (7) That 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) That the solar energy system be installed in conformance with
the manufacturer's specifications and in compliance with all
applicable electrical and building code standards. 
   (e) A local publicly owned electric utility shall, on an annual
basis beginning June 1, 2008, make available to its customers, to the
Legislature, and to the State Energy Resources Conservation and
Development Commission, information relating to the utility's solar
initiative program established pursuant to this section, including,
but not limited to, the number of photovoltaic solar watts installed,
the total number of photovoltaic systems installed, the total number
of applicants, the amount of incentives awarded, and the
contribution toward the program goals.  
   (f) 
    (e)  In establishing the program required by this
section, no moneys shall be diverted from any existing programs for
low-income ratepayers, or from cost-effective energy efficiency or
demand response programs. 
   (g) 
    (f)  The statewide expenditures for solar programs
adopted, implemented, and financed by local publicly owned electric
utilities shall be seven hundred eighty-four million dollars
($784,000,000). The expenditure level for each local publicly owned
electric utility shall be based on that utility's percentage of the
total statewide load served by all local publicly owned electric
utilities. Expenditures by a local publicly owned electric utility
may be less than the utility's cap amount, provided that funding is
adequate to provide the incentives required by subdivisions (a) and
(b).
  SEC. 5.  Section 398.2 of the Public Utilities Code is amended to
read:
   398.2.  The definitions set forth in this section shall govern the
construction of this article.
   (a) "Retail  supplier" means an entity that offers an
electricity product for sale to retail consumers in California
  seller" has the same meaning as defined in Section
399.12  .
   (b) "System operator" means the Independent System Operator with
responsibility for the efficient use and reliable operation of the
transmission grid, as provided by Section 345, or a local publicly
owned electric utility that does not utilize the Independent System
Operator.
   (c) "Specific purchases" means electricity transactions which are
traceable to specific generation sources by any auditable contract
trail or equivalent, such as a tradable commodity system, that
provides commercial verification that the electricity source claimed
has been sold once and only once to a retail consumer. Retail
 suppliers   sellers  may rely on annual
data to meet this requirement, rather than hour-by-hour matching of
loads and resources.
   (d) "Unspecified sources of  power"  
electricity   "  means electricity that is not
traceable to specific generation sources by any auditable contract
trail or equivalent, including a tradable commodity system, that
provides commercial verification that the electricity source claimed
has been sold once, and only once, to a retail consumer.
  SEC. 6.  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   Energy  Commission 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 
 Energy  Commission 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   Energy
 Commission 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. 7.  Section 398.4 of the Public Utilities Code is amended to
read:
   398.4.  (a) Every retail  supplier   seller
 that makes an offering to sell electricity that is consumed in
California shall disclose its electricity sources for the previous
calendar year.
   (b) The disclosures required by this section shall be made to
potential end-use consumers in all product-specific written
promotional materials that are distributed to consumers by either
printed or electronic means, including the retail  supplier's
  seller's  Internet Web site, if one exists,
except that advertisements and notices in general circulation media
shall not be subject to this requirement.
   (c) The disclosures required by this section shall be made
annually to end-use consumers of the offered electricity. The annual
disclosure shall be made by the end of the first complete billing
cycle for the third quarter of the year, and shall be consistent with
information provided to the Energy Commission pursuant to Section
398.5.
   (d) The disclosures required by this section shall be made
separately for each offering made by the retail  supplier
  seller  .
   (e)  On or before January 1, 1998, the   The
 Energy Commission shall specify guidelines for the format and
means for disclosure required by Section 398.3 and this section,
based on the requirements of this article and subject to public
hearing.
   (f) The costs of making the disclosures required by this section
shall be considered to be generation related.
   (g) The disclosures required by this section shall comply with the
following:
   (1) A retail  supplier's   seller's 
disclosure of its electricity sources shall be expressed as a
percentage of annual sales derived from each of the following
categories:
   (A) Unspecified sources of electricity.
   (B) Specific purchases.
   (2) A retail  supplier's   seller's 
disclosure of its electricity sources shall also separately identify
total California system electricity, which is the sum of all in-state
generation and net electricity imports by fuel type.
   (h) Each of the categories specified in subdivision (g) shall be
additionally identified as a percentage of annual sales that is
derived from the following fuels or sources of energy:
   (1) Coal.
   (2) Large hydroelectric (greater than 30 megawatts)  and any
other hydroelectric generation that is not an eligible renewable
energy resource pursuant to the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)) 
.
   (3) Natural gas.
   (4) Nuclear.
   (5) Eligible renewable energy resources pursuant to the California
Renewables Portfolio Standard Program (Article 16 (commencing with
Section 399.11)), including any of the following:
   (A) Biomass and biowaste.
   (B) Geothermal.
   (C) Eligible hydroelectric.
   (D) Solar.
   (E) Wind.
   (6) Other categories as determined by the Energy Commission.
   (i) All electricity sources disclosed as specific purchases shall
meet the requirements of subdivision (c) of Section 398.2.
   (j) Specific purchases identified pursuant to this section shall
be from sources connected to the Western Electricity Coordinating
Council interconnected grid. 
   (k) Compliance with this section by a local publicly owned
electric utility shall constitute compliance with paragraph (2) of
subdivision (b) of Section 387.  
   (l) 
    (k)  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.
  SEC. 8.  Section 398.5 of the Public Utilities Code is amended to
read:
   398.5.  (a) Retail  suppliers   sellers 
that disclose specific purchases pursuant to Section 398.4 shall
 annually  report  on June 1, 2009, and annually
thereafter,  to the Energy Commission, 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 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   The
 Energy Commission 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 shall seek to minimize the reporting
burden and cost of reporting that it imposes on retail 
suppliers   sellers  .
   (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 may verify the veracity of environmental
claims made by retail  suppliers   sellers
 .
  SEC. 9.  Section 399.30 of the Public Utilities Code is amended to
read:
   399.30.  (a) In order to fulfill unmet long-term generation
resource needs, each local publicly owned electric utility shall
adopt and implement a renewable energy resources procurement plan
that requires the utility to procure a minimum quantity of
electricity products from eligible renewable energy resources,
including renewable energy credits, as a specified percentage of
total kilowatthours sold to the utility's retail end-use customers,
each compliance period, to achieve the targets of subdivision (c).
   (b) The governing board shall implement procurement targets for a
local publicly owned electric utility that require the utility to
procure a minimum quantity of eligible renewable energy resources for
each of the following compliance periods:
   (1) January 1, 2011, to December 31, 2013, inclusive.
   (2) January 1, 2014, to December 31, 2016, inclusive.
   (3) January 1, 2017, to December 31, 2020, inclusive.
   (c) The governing board of a local publicly owned electric utility
shall ensure all of the following:
   (1) The quantities of eligible renewable energy resources to be
procured for the compliance period from January 1, 2011, to December
31, 2013, inclusive, are equal to an average of 20 percent of retail
sales.
   (2) The quantities of eligible renewable energy resources to be
procured for all other compliance periods reflect reasonable progress
in each of the intervening years sufficient to ensure that the
procurement of electricity products from eligible renewable energy
resources achieves 25 percent of retail sales by December 31, 2016,
and 33 percent of retail sales by December 31, 2020. The local
governing board shall require the local publicly owned utilities to
procure not less than 33 percent of retail sales of electricity
products from eligible renewable energy resources in all subsequent
years.
   (3) A local publicly owned electric utility shall adopt
procurement requirements consistent with Section 399.16.
   (d) The governing board of a local publicly owned electric utility
may adopt the following measures:
   (1) Rules permitting the utility to apply excess procurement in
one compliance period to subsequent compliance periods in the same
manner as allowed for retail sellers pursuant to Section 399.13.
   (2) Conditions that allow for delaying timely compliance
consistent with subdivision (b) of Section 399.15.
   (3) Cost limitations for procurement expenditures consistent with
subdivision (c) of Section 399.15.
   (e) The governing board of the local publicly owned electric
utility shall adopt a program for the enforcement of this article on
or before January 1, 2012. The program shall be adopted at a publicly
noticed meeting offering all interested parties an opportunity to
comment. Not less than 30 days' notice shall be given to the public
of any meeting held for purposes of adopting the program. Not less
than 10 days' notice shall be given to the public before any meeting
is held to make a substantive change to the program.
   (f) (1) Each local publicly owned electric utility shall annually
post notice, in accordance with Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code,
whenever its governing body will deliberate in public on its
renewable energy resources procurement plan.
   (2) Contemporaneous with the posting of the notice of a public
meeting to consider the renewable energy resources procurement plan,
the local publicly owned electric utility shall notify the Energy
Commission of the date, time, and location of the meeting in order to
enable the Energy Commission to post the information on its Internet
Web site. This requirement is satisfied if the local publicly owned
electric utility provides the uniform resource locator (URL) that
links to this information.
   (3) Upon distribution to its governing body of information related
to its renewable energy resources procurement status and future
plans, for its consideration at a noticed public meeting, the local
publicly owned electric utility shall make that information available
to the public and shall provide the Energy Commission with an
electronic copy of the documents for posting on the Energy Commission'
s Internet Web site. This requirement is satisfied if the local
publicly owned electric utility provides the uniform resource locator
(URL) that links to the documents or information regarding other
manners of access to the documents.
   (g) A local publicly owned electric utility shall annually submit
to the Energy Commission documentation regarding eligible renewable
energy resources procurement contracts that it executed during the
prior year, as follows:
   (1) A description of the eligible renewable energy resource,
including the duration of the contract or electricity purchase
agreement.
   (2) A description and identification of the electrical generating
facility providing the eligible renewable energy resource under the
contract.
   (3) An estimate of the percentage increase in the utility's total
retail sales of electricity from eligible renewable energy resources
that will result from the contract.
   (h) A public utility district that receives all of its electricity
pursuant to a preference right adopted and authorized by the United
States Congress pursuant to Section 4 of the Trinity River Division
Act of August 12, 1955 (Public Law 84-386) shall be in compliance
with the renewable energy procurement requirements of this article.
   (i) For a local publicly owned electric utility that was in
existence on or before January 1, 2009, that provides retail electric
service to 15,000 or fewer customer accounts in California, and is
interconnected to a balancing authority located outside this state
but within the WECC, an eligible renewable energy resource includes a
facility that is located outside California that is connected to the
WECC transmission system, if all of the following conditions are
met:
   (1) The electricity generated by the facility is procured by the
local publicly owned electric utility, is delivered to the balancing
authority area in which the local publicly owned electric utility is
located, and is not used to fulfill renewable energy procurement
requirements of other states.
   (2) The local publicly owned electric utility participates in, and
complies with, the accounting system administered by the Energy
Commission pursuant to this article.
   (3) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the renewables portfolio standard
procurement requirements.
   (j) Notwithstanding subdivision (a), for a local publicly owned
electric utility that is a joint powers authority of districts
established pursuant to state law on or before January 1, 2005, that
furnish electric services other than to residential customers, and is
formed pursuant to the Irrigation District Law (Division 11
(commencing with Section 20500) of the Water Code), the percentage of
total kilowatthours sold to the district's retail end-use customers,
upon which the renewables portfolio standard procurement
requirements in subdivision (b) are calculated, shall be based on the
authority's average retail sales over the previous seven years. If
the authority has not furnished electric service for seven years,
then the calculation shall be based on average retail sales over the
number of completed years during which the authority has provided
electric service.
   (k) A local publicly owned electric utility in a city and county
that only receives greater than 67 percent of its electricity sources
from hydroelectric generation located within the state that it owns
and operates, and that does not meet the definition of a "renewable
electrical generation facility" pursuant to Section 25741 of the
Public Resources Code, shall be required to procure eligible
renewable energy resources, including renewable energy credits, to
meet only the electricity demands unsatisfied by its hydroelectric
generation in any given year, in order to satisfy its renewable
energy procurement requirements. 
   (l) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the Energy Commission, all of
the following:  
   (1) Expenditures of public goods funds collected pursuant to
Section 385 for eligible renewable energy resource development.
Reports shall contain a description of programs, expenditures, and
expected or actual results. 
   (2) The resource mix used to serve its customers by energy source.
 
   (3) The utility's status in implementing a renewables portfolio
standard pursuant to subdivision (a) and the utility's progress
toward attaining the standard following implementation. 

   (m) 
    (l)  A local publicly owned electric utility shall
retain discretion over both of the following:
   (1) The mix of eligible renewable energy resources procured by the
utility and those additional generation resources procured by the
utility for purposes of ensuring resource adequacy and reliability.
   (2) The reasonable costs incurred by the utility for eligible
renewable energy resources owned by the utility. 
   (n) 
    (m)  On or before July 1, 2011, the Energy Commission
shall adopt regulations specifying procedures for enforcement of this
article. The regulations shall include a public process under which
the Energy Commission may issue a notice of violation and correction
against a local publicly owned electric utility for failure to comply
with this article, and for referral of violations to the State Air
Resources Board for penalties pursuant to subdivision (o). 
   (o) 
    (n)  (1) Upon a determination by the Energy Commission
that a local publicly owned electric utility has failed to comply
with this article, the Energy Commission shall refer the failure to
comply with this article to the State Air Resources Board, which may
impose penalties to enforce this article consistent with Part 6
(commencing with Section 38580) of Division 25.5 of the Health and
Safety Code. Any penalties imposed shall be comparable to those
adopted by the commission for noncompliance by retail sellers.
   (2) If Division 25.5 (commencing with Section 38500) of the Health
and Safety Code is suspended or repealed, the State Air Resources
Board may take action to enforce this article on local publicly owned
electric                                              utilities
consistent with Section 41513 of the Health and Safety Code, and
impose penalties on a local publicly owned electric utility
consistent with Article 3 (commencing with Section 42400) of Chapter
4 of Part 4 of, and Chapter 1.5 (commencing with Section 43025) of
Part 5 of, Division 26 of the Health and Safety Code.
   (3) For the purpose of this subdivision, this section is an
emissions reduction measure pursuant to Section 38580 of the Health
and Safety Code.
   (4) If the State Air Resources Board has imposed a penalty upon a
local publicly owned electric utility for the utility's failure to
comply with this article, the State Air Resources Board shall not
impose an additional penalty for the same infraction, or the same
failure to comply, with any renewables procurement requirement
imposed upon the utility pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code).
   (5) Any penalties collected by the State Air Resources Board
pursuant to this article shall be deposited in the Air Pollution
Control Fund and, upon appropriation by the Legislature, shall be
expended for reducing emissions of air pollution or greenhouse gases
within the same geographic area as the local publicly owned electric
utility. 
   (p) 
    (o)  The commission has no authority or jurisdiction to
enforce any of the requirements of this article on a local publicly
owned electric utility.
  SEC. 10.  Section 2836 of the Public Utilities Code is amended to
read:
   2836.  (a) (1) On or before March 1, 2012, the commission shall
open a proceeding to determine appropriate targets, if any, for each
load-serving entity to procure viable and cost-effective energy
storage systems to be achieved by December 31, 2015, and December 31,
2020. As part of this proceeding, the commission may consider a
variety of possible policies to encourage the cost-effective
deployment of energy storage systems, including refinement of
existing procurement methods to properly value energy storage
systems.
   (2) The commission shall adopt the procurement targets, if
determined to be appropriate pursuant to paragraph (1), by October 1,
2013.
   (3) The commission shall reevaluate the determinations made
pursuant to this subdivision not less than once every three years.
   (4) Nothing in this section prohibits the commission's evaluation
and approval of any application for funding or recovery of costs of
any ongoing or new development, trialing, and testing of energy
storage projects or technologies outside of the proceeding required
by this chapter.
   (b) (1) On or before March 1, 2012, the governing board of each
local publicly owned electric utility shall initiate a process to
determine appropriate targets, if any, for the utility to procure
viable and cost-effective energy storage systems to be achieved by
December 31, 2016, and December 31, 2021. As part of this proceeding,
the governing board may consider a variety of possible policies to
encourage the cost-effective deployment of energy storage systems,
including refinement of existing procurement methods to properly
value energy storage systems.
   (2) The governing board shall adopt the procurement targets, if
determined to be appropriate pursuant to paragraph (1), by October 1,
2014.
   (3) The governing board shall reevaluate the determinations made
pursuant to this subdivision not less than once every three years.

   (4) A local publicly owned electric utility shall report to the
Energy Commission regarding the energy storage system procurement
targets and policies adopted by the governing board pursuant to
paragraph (2), and report any modifications made to those targets as
a result of a reevaluation undertaken pursuant to paragraph (3).

  SEC. 11.  Section 2839 of the Public Utilities Code is repealed.

   2839.  (a) (1) By January 1, 2017, a local publicly owned electric
utility shall submit a report to the Energy Commission demonstrating
that it has complied with the energy storage system procurement
targets and policies adopted by the governing board pursuant to
subdivision (b) of Section 2836.
   (2) By January 1, 2022, a local publicly owned electric utility
shall submit a report to the Energy Commission demonstrating that it
has complied with the energy storage system procurement targets and
policies adopted by the governing board pursuant to subdivision (b)
of Section 2836.
   (b) The Energy Commission shall ensure that a copy of each report
or plan required by subdivisions (a) and (b), with any confidential
information redacted, is available on the Energy Commission's
Internet Web site, or on an Internet Web site maintained by the local
publicly owned electric utility that can be accessed from the Energy
Commission's Internet Web site.
   (c) The commission does not have authority or jurisdiction to
enforce any of the requirements of this chapter against a local
publicly owned electric utility. 
  SEC. 12.  Section 2839 is added to the Public Utilities Code, to
read:
   2839.  The commission does not have authority or jurisdiction to
enforce any of the requirements of this chapter against a local
publicly owned electric utility.
  SEC. 13.  Section 9504 is added to the Public Utilities Code, to
read:
   9504.  (a) For purposes of this section, "eligible renewable
energy resource" and "renewables portfolio standard" have the same
meaning as for the California Renewables Portfolio Standard Program
(Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1
of Division 1).
   (b) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the Energy Commission, all of
the following:
   (1) Expenditures for eligible renewable energy resource
development. Reports shall contain a description of programs, sources
of funding, expected results, and actual results.
   (2) The resource mix used to serve its customers by energy source.

   (3) The utility's progress toward attaining the renewables
portfolio standard established pursuant to Section 399.30.
   (c) A local publicly owned electric utility shall, on an annual
basis, make available to its customers, the Legislature, and the
Energy Commission, information relating to the utility's solar
initiative program established pursuant to Section 2854, including
the rated generating capacity of installed solar energy systems
receiving monetary incentives through the utility's program, the
total number of solar energy systems installed, the total number of
applications for the utility's program, the amount of monetary
incentives awarded, and the contribution toward the program goals of
the California Solar Initiative (Section 2854).
  SEC. 14.  Section 9505 is added to the Public Utilities Code, to
read:
   9505.  (a) Each local publicly owned electric utility shall
annually report to the Energy Commission and to its customers all of
the following:
   (1) Its investments in energy efficiency and demand reduction
programs.
   (2) A description of each energy efficiency and demand reduction
program, program expenditures, cost-effectiveness of each program,
and expected and actual energy efficiency savings and demand
reduction results that reflect the intent of the Legislature to
encourage energy savings and reductions in emissions of greenhouse
gases resulting from providing service to existing residential and
nonresidential buildings, while taking into consideration the effect
of the program on rates, reliability, and financial resources.
   (3) The sources for funding of its energy efficiency and demand
reduction programs.
   (4) The methodologies and input assumptions used to determine the
cost-effectiveness of its energy efficiency and demand reduction
programs.
   (b) On June 1, 2013, and by June 1 of every third year thereafter,
each local publicly owned electric utility shall identify all
potentially achievable cost-effective electricity efficiency savings
and shall establish annual targets for energy efficiency savings and
demand reduction for the next 10-year period. A local publicly owned
electric utility's determination of potentially achievable
cost-effective electricity efficiency savings shall be made without
regard to previous minimum investments undertaken pursuant to Section
385. A local publicly owned electric utility shall treat investments
made to achieve energy efficiency savings and demand reduction
targets as procurement investments.
   (c) Within 60 days of establishing annual targets pursuant to
subdivision (b), each local publicly owned electric utility shall
report those targets to the Energy Commission, and the basis for
establishing those targets.
   (d) Each local publicly owned electric utility shall make
available to its customers and to the Energy Commission the results
of any independent evaluation that measures and verifies the energy
efficiency savings and the reduction in energy demand achieved by its
energy efficiency and demand reduction programs.
   (e) Each local publicly owned electric utility shall make
information available in electronic form on an Internet Web site
relative to the utility's investments in energy efficiency programs
and renewable energy programs pursuant to Sections 2854 and 9504 and
include information and data relative to all of the following:
   (1) A general description of the utility's energy efficiency
programs.
   (2) The total budget for energy efficiency programs during the
then-current fiscal year with the remaining unencumbered available
funds.
   (3) A summary of expenditures made for energy efficiency programs
and renewable energy programs pursuant to Sections 2854 and 9504
during the then-current fiscal year that includes the following:
   (A) The number of rebates or other incentives provided.
   (B) The moneys spent or encumbered for each energy efficiency
program and renewable energy program pursuant to Sections 2854 and
9504.
   (C) A breakdown of the recipients of rebates or other incentives
by customer classes and, for residential customers, by whether the
recipients are low-income customers.
   (D) The information required by this paragraph shall be updated
not less often than quarterly.
   (E) The information required by this paragraph may be made
available in the form of a spreadsheet accessible by a uniform
resource locator (URL) connection on an Internet Web site.
   (F) Each local publicly owned electric utility shall provide the
Energy Commission with information as to how to access the
information required by this paragraph. The Energy Commission shall
make information available on its Internet Web site, including a
uniform resource locator (URL) connection, that will enable members
of the public to access the information required by this paragraph.
  SEC. 15.  Section 9506 is added to the Public Utilities Code, to
read:
   9506.  (a) A local publicly owned electric utility shall report to
the Energy Commission regarding the energy storage system
procurement targets and policies adopted by the governing board
pursuant to paragraph (2) of, and report any modifications made to
those targets as a result of a reevaluation undertaken pursuant to
paragraph (3) of, subdivision (b) of Section 2836.
   (b) By January 1, 2017, a local publicly owned electric utility
shall submit a report to the Energy Commission demonstrating that it
has complied with the energy storage system procurement targets and
policies adopted by the governing board pursuant to subdivision (b)
of Section 2836.
   (c) By January 1, 2022, a local publicly owned electric utility
shall submit a report to the Energy Commission demonstrating that it
has complied with the energy storage system procurement targets and
policies adopted by the governing board pursuant to subdivision (b)
of Section 2836.
   (d) The Energy Commission shall ensure that a copy of each report
or plan required by subdivisions (b) and (c), with any confidential
information redacted, is available on the Energy Commission's
Internet Web site, or on an Internet Web site maintained by the local
publicly owned electric utility that can be accessed from the Energy
Commission's Internet Web site.
  SEC. 16.  Section 9506.5 is added to the Public Utilities Code, to
read:
   9506.5.  A local publicly owned electric utility serving end-use
customers shall, upon request, provide the Energy Commission with any
information the Energy Commission determines is necessary to
evaluate the progress made by the local publicly owned electric
utility in meeting the requirements of Section 9620.
  SEC. 17.  Section 9507 is added to the Public Utilities Code, to
read:
   9507.  (a) Every local publicly owned electric utility shall
disclose its electricity sources to end-use customers for the
previous calendar year. The disclosure required by this section shall
be made annually to end-use consumers of the offered electricity.
The annual disclosure shall be made by the end of the first complete
billing cycle for the third quarter of the year, and shall be
consistent with information provided to the Energy Commission
pursuant to Section 9508.
   (b) The disclosures required by this section shall be made to
potential end-use consumers in all product-specific written
promotional material that are distributed to consumers by either
printed or electronic means, including the local publicly owned
electric utility's Internet Web site, if one exists, except that
advertisements and notices in general circulation media shall not be
subject to this requirement.
  SEC. 18.  Section 9508 is added to the Public Utilities Code, to
read:
   9508.  (a) A local publicly owned electric utility that discloses
specific purchases pursuant to Section 9507 shall annually report to
the Energy Commission, for each electricity offering for the previous
calendar year, each of the following:
   (1) The total 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 total kilowatthours sold at
retail.
   (3) For each electricity offering, the disclosures made to
consumers pursuant to Section 9507.
   (b)  Information submitted to the Energy Commission 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
aggregated form such that the trade secret cannot be discerned.
   (c) In developing the rules and procedures specified in this
section and in Section 9507, the Energy Commission shall seek to
minimize the reporting burden and cost of reporting that it imposes
on local publicly owned electric utilities.
   (d) The Energy Commission may verify the veracity of environmental
claims made by local publicly owned electric utilities.
  SEC. 19.  Section 9615 of the Public Utilities Code is amended to
read:
   9615.   (a)    Each local
publicly owned electric utility, in procuring energy to serve the
load of its retail end-use customers, shall first acquire all
available energy efficiency and demand reduction resources that are
cost effective, reliable, and feasible. 
   (b) On or before June 1, 2007, and by June 1 of every third year
thereafter, each local publicly owned electric utility shall identify
all potentially achievable cost-effective electricity efficiency
savings and shall establish annual targets for energy efficiency
savings and demand reduction for the next 10-year period. A local
publicly owned electric utility's determination of potentially
achievable cost-effective electricity efficiency savings shall be
made without regard to previous minimum investments undertaken
pursuant to Section 385. A local publicly owned electric utility
shall treat investments made to achieve energy efficiency savings and
demand reduction targets as procurement investments. 

   (c) Within 60 days of adopting annual targets pursuant to
subdivision (b), each local publicly owned electric utility shall
report those targets to the State Energy Resources Conservation and
Development Commission, and the basis for establishing those targets.
 
   (d) Each local publicly owned electric utility shall report
annually to its customers and to the State Energy Resources
Conservation and Development Commission. The report shall contain,
but is not limited to, both of the following:  
   (1) Its investments in energy efficiency and demand reduction
programs.  
   (2) A description of programs, expenditures, cost-effectiveness,
and expected and actual energy efficiency savings and demand
reduction results.  
   (e) Each local publicly owned electric utility shall also annually
develop and submit to the State Energy Resources Conservation and
Development Commission a report containing all of the following:
 
   (1) The sources of funding for its investments in energy
efficiency and demand reduction program investments. 

   (2) The methodologies and input assumptions used to determine
cost-effectiveness.  
   (3) The results of an independent evaluation that measures and
verifies the energy efficiency savings and reduction in energy demand
achieved by its energy efficiency and demand reduction programs.
 
   (f) The State Energy Resources Conservation and Development
Commission shall include a summary of the information reported
pursuant to subdivision (e) in the integrated energy policy report
prepared pursuant to Chapter 4 (commencing with Section 25300) of
Division 15 of the Public Resources Code. The State Energy Resources
Conservation and Development Commission shall also include, for each
local publicly owned electric utility, a comparison of the local
publicly owned electric utility's annual targets established in
accordance with this section, and the local publicly owned electric
utility's actual energy efficiency savings and demand reductions. If
the State Energy Resources Conservation and Development Commission
determines that improvements can be made in either the level of a
local publicly owned electric utility's annual targets to achieve all
cost-effective, reliable, and feasible energy savings and demand
reductions and to enable the local publicly owned electric utilities,
in the aggregate, to achieve statewide targets established pursuant
to Section 25310, or in meeting each local publicly owned electric
utility's annual targets, the State Energy Resources Conservation and
Development Commission shall provide recommendations to the local
publicly owned electric utility, the Legislature, and the Governor on
those improvements.