BILL NUMBER: SB 35 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Padilla
DECEMBER 6, 2010
An act to amend Sections 25620.2 and 25620.15 of the Public
Resources Code, and to amend Section 399.8 of the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 35, as introduced, Padilla. Energy: Public Interest Energy
Research, Demonstration, and Development Program.
(1) Under the Public Utilities Act, the Public Utilities
Commission (PUC) has regulatory authority over public utilities,
including electrical corporations. The act requires the PUC to
require, until January 1, 2012, an electrical corporation to identify
a separate electrical rate component to fund energy efficiency,
renewable energy, and research, development and demonstration
programs that enhance system reliability and provide in-state
benefits. A violation of the act is a crime.
This bill would extend this requirement to January 1, 2013.
Because a violation of the act is a crime, this bill would impose a
state-mandated local program.
(2) Existing law establishes the Public Interest Energy Research,
Demonstration, and Development Program for the purpose of making
awards for public interest energy research, development, and
demonstration projects or programs that are not provided for by
competitive regulated markets. Existing law proscribes, until January
1, 2012, procedures that the State Energy Resources Conservation and
Development Commission (Energy Commission) is required to follow in
adopting regulations to implement the program.
This bill would require the Energy Commission to follow the
proscribed procedures until January 1, 2013.
(3) Existing law requires that the moneys collected between
January 1, 2007, and January 1, 2012, from the electrical
corporations for public interest research, development, and
demonstration and deposited in the Public Interest Research,
Development, and Demonstration Fund be used for the purposes of the
Public Interest Energy Research, Demonstration, and Development
Program.
The bill would extend the use of those moneys collected until
January 1, 2013 for the purposes of the Public Interest Energy
Research, Demonstration, and Development Program to January 1, 2013.
(4) 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.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25620.2 of the Public Resources Code is amended
to read:
25620.2. (a) To ensure the efficient implementation and
administration of the Public Interest Research, Development, and
Demonstration Program, the commission 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, 2013, unless a later enacted
statute deletes or extends that date. However, after January 1,
2012, 2013, the commission is not
required to repeat any procedural step in adopting a regulation that
has been completed before January 1, 2012,
2013, using the procedures specified in this subdivision.
SEC. 2. 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,
2012, 2013, 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. 3. 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.
2013. 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 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. 4. 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.