BILL NUMBER: SB 35 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 26, 2011
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 An act to repeal Sections 25740, 25740.5,
25742, 25743, 25744, 25744.5, 25746, 25747, 25748, and 25751
of, to repeal, add, and repeal Chapter 7.1 (commencing with
Section 25620) of Division 15 of the Public Resources Code, and to
repeal Section 399.8 of the Public Utilities Code, relating to
energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 35, as amended, Padilla. Energy: Public Interest
Energy Research, Demonstration, and Development Program.
California Energy Research and Technology Program Act of 2011.
(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
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 projects be
deposited in the Public Interest Research, Development, and
Demonstration Fund and be used for the purposes of the
Public Interest Energy Research, Demonstration, and Development
Program. Existing law requires that the moneys collected by the
electrical corporations for the benefit of instate operation and
development of existing and new and emerging renewable resources
technologies be deposited in the Renewable Resource Trust Fund for
the purposes of the Renewable Energy Resources Program .
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 repeal those
provisions .
(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.
(2) This bill would enact the California Energy Research and
Technology Program Act of 2011 (act). The bill would require the
State Energy Resources Conservation and Development Commission
(Energy Commission) to establish and administer the California Energy
Research and Technology program (CERT) to fund research,
development, and demonstration projects that may lead to advancement
and breakthroughs to overcome those barriers that prevent the
achievement of the state's statutory energy goals. The bill would
require the Energy Commission to convene, no less than twice a year,
meetings of the CERT Coordinating Council consisting of members
representing specified entities and would require the council to
identify the technological challenges that most warranted funding
under the CERT and opportunities for joint funding of projects and to
make recommendations for avoiding the funding of duplicative
projects. The bill would require the Energy Commission to adopt
regulations or modify existing regulations to implement the CERT. The
bill would require the Energy Commission to consult with the CERT
Coordinating Council to establish a process for tracking the progress
and outcome of funded projects. The bill would require the Energy
Commission to consult with the CERT Coordinating Council and the
Treasurer to establish terms that may be imposed as conditions for
the receipt of CERT funding. The bill would require the Energy
Commission, no later than March 31 of each year to prepare and submit
to the Legislature an annual report regarding projects funded by the
CERT. The bill would require the Energy Commission, no later than an
unspecified date, to contract with an independent entity to review
the CERT and require the Energy Commission to report to the
Legislature regarding the CERT no later than an unspecified. The bill
would repeal the act on an unspecified date.
Vote: 2/3 majority . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 7.1 (commencing with Section
25620) of Division 15 of the Public Resources Code
is repealed.
SEC. 2. Chapter 7.1 (commencing with Section
25620) is added to Division 15 of the Public Resources
Code , to read:
CHAPTER 7.1. CALIFORNIA ENERGY RESEARCH AND TECHNOLOGY
25620. This chapter shall be known and may be cited as the
California Energy Research and Technology Program Act of 2011.
25620.1. The Legislature finds and declares all of the following:
(a) California has been a national leader in reducing energy
consumption by establishing ambitious goals, policies, and programs
to increase energy efficiency and generation from renewable energy
sources.
(b) Achieving these state energy goals will benefit the public and
energy utility ratepayers through reduced system costs and reduced
end-user charges for service.
(c) Barriers to achieving these energy goals and ratepayer
benefits include, but are not limited to, significant technological
challenges relating to energy storage, integrating renewable energy
into the electric grid, and accurately forecasting the availability
of renewable energy for integration into the grid.
(d) Breakthroughs to overcome these technological challenges and
to enable the state to achieve its statutory energy goals require
strategically focused research, development, and demonstration
projects.
(e) It is appropriate and necessary for the state to administer a
program of research, development, and demonstration to accelerate
technological advancement and breakthroughs that may enable the state
to achieve its statutory energy goals.
25620.2. (a) The California Energy Research and Technology
program (CERT) is hereby established for the purpose of funding
research, development, and demonstration projects that may lead to
technological advancement and breakthroughs to overcome the barriers
that prevent the achievement of the state's statutory energy goals.
(b) The commission shall develop and administer the program
consistent with this chapter.
25620.3. (a) The commission shall, no less than twice a year,
convene a meeting of the CERT Coordinating Council, which shall
consist of the following members:
(1) The chair of the commission, who shall serve as the chair of
the council.
(2) One representative from Pacific Gas and Electric Corporation.
(3) One representative from Southern California Edison
Corporation.
(4) One representative from San Diego Gas and Electric
Corporation.
(5) One representative from the Public Utilities Commission.
(6) One representative from the Independent System Operator.
(7) One representative from the State Air Resources Board.
(8) One representative from the Division of Ratepayer Advocates
within the Public Utilities Commission.
(9) Two representatives from consumer organizations, with one
appointed by the Senate Committee on Rules and one appointed by the
Speaker of the Assembly.
(10) Two representatives from environmental organizations, with
one appointed by the Senate Committee on Rules and one appointed by
the Speaker of the Assembly.
(11) Two representatives from university research institutions,
with one appointed by the Senate Committee on Rules and one appointed
by the Speaker of the Assembly.
(12) Three at-large members appointed by the Governor.
(13) (A) Two ex officio, nonvoting members from the Legislature,
with one Senator appointed by the Senate Committee on Rules and one
Assembly Member appointed by the Speaker of the Assembly.
(B) The Members of the Legislature shall participate in the
activities of the council to the extent that the participation is not
incompatible with their respective positions as Members of the
Legislature.
(b) Each voting member of the council shall serve a term of three
years.
(c) The council shall annually identify the technological
challenges that are the most significant barriers to achieving the
state's statutory energy goals for which CERT funding is most
warranted. These technological challenges shall include, but not be
limited to, energy storage, integrating renewable energy into the
electrical grid, and accurately forecasting the availability of
renewable energy for integration into the electrical grid.
(d) The council shall identify opportunities for joint funding of
research, development, and demonstration projects, and make
recommendations to help the commission avoid funding projects that
would duplicate projects already being funded by the Public Utilities
Commission, the State Air Resources Board, or any other public
agency or private organization.
(e) The council shall comply with the requirements of the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the
Government Code).
25620.4. (a) The commission shall award CERT funds for projects
that may lead to technological advancement and breakthroughs to
overcome barriers to achieving the state's statutory energy goals and
that results in a portfolio of project awards that does all of the
following:
(1) Is strategically focused and sufficiently narrow to make
advancement on the most significant technological challenges,
including, but not limited to, energy storage, integrating renewable
energy into the electrical grid, and accurately forecasting the
availability of renewable energy for integration into the electrical
grid, or technological challenges identified by the CERT Coordinating
Council pursuant to Section 25620.3.
(2) Ensures that prior, current, and future research, development,
and demonstration projects are not unnecessarily duplicated.
(3) Invests in projects of California-based entities unless there
is a unique need that can be met only by an entity based outside of
California.
(4) Results in a reasonably equitable distribution of awards from
various geographic regions of California, if consistent with the
provisions of this chapter.
(5) Maximizes expenditure of funds for research, development, and
demonstration projects and minimizes expenditure of funds for
administration and overhead costs.
(b) The commission shall not award or expend CERT funds for any
purposes except as provided in this chapter or identified by the
council pursuant to Section 25620.3.
25620.5. (a) The commission shall adopt regulations, or modify
existing regulations, for the solicitation of award applications,
evaluation of applications, and the award of funds consistent with
this chapter.
(b) The regulations shall require each applicant to demonstrate
how the proposed project may lead to technological advancement and
potential breakthroughs to overcome barriers to achieving the state's
statutory energy goals.
(c) The regulations shall require each reward recipient, as a
condition of receiving CERT funds, to agree to any terms the
commission determines are appropriate for the state to accrue any
intellectual property interest or royalties that may derive from CERT
funding.
(d) The regulations shall prohibit any person from participating
in the evaluation or disposition of any application if that person
has a conflict of interest regarding that application, within the
meaning of Section 87100 of the Government Code.
25620.6. The commission, prior to awarding any CERT funds, and in
consultation with the CERT Coordinating Council, shall establish a
process for tracking the progress and outcomes of each funded
project, including an accounting of the amount of funds spent on
administrative and overhead costs and whether the project resulted in
any technological advancement or breakthrough to overcome barriers
to achieving the state's statutory energy goals.
25620.7. The commission, prior to awarding any CERT funds, and in
consultation with the CERT Coordinating Council and the Treasurer,
shall establish terms that may be imposed as a condition to receipt
of funding, as the commission determines appropriate, for the state
to accrue any intellectual property interest or royalties that may
derive from CERT funding. The commission, when determining if
imposition of these terms is appropriate, shall balance the potential
benefit to the state from those terms and the effect those terms may
have on the state achieving its statutory energy goals.
25620.8. (a) The commission, not later than March 31 of each
year, shall prepare and submit to the Legislature an annual report in
compliance with Section 9795 of the Government Code that shall
include all of the following:
(1) A brief description of each project for which funding was
awarded in the immediately prior calendar year, including the name of
the recipient and amount of award, and a description of how the
project may lead to technological advancement or breakthroughs to
overcome barriers to achieving the state's statutory energy goals.
(2) A brief description of each CERT-funded project that was
completed in the immediately prior calendar year, including the name
of the recipient, the amount of the award, and the outcomes of the
funded project, in accordance with the process described in Section
25620.6.
(3) A brief description of each CERT-funded project for which an
award was made in the previous years but that is not completed,
including the name of the recipient and amount of the award, and a
description of how the project may lead to technological advancement
or breakthroughs to overcome barriers to achieving the state's
statutory energy goals.
(4) A list and description of the technological challenges that
the council identifies as the most significant barriers to achieving
the state's statutory energy goals, as identified by the council
pursuant to Section 25260.3 for the current year and all prior years.
(b) The commission shall post on its Internet Web site each annual
report, and a searchable database containing information in the
annual report and shall also include information on awards made under
the former Public Interest Research, Development, and Demonstration
Program.
(c) The commission shall establish procedures for protecting
confidential or proprietary information in public reports about
CERT-funded projects.
25620.9. The commission, no later than ____, shall contract with
an independent entity to conduct a review of the CERT and report the
conclusions and recommendations from that review to the Legislature
no later than ____.
25620.10. This chapter shall remain in effect only until ____,
and as of that date is repealed, unless a later enacted statute, that
is enacted before ____, deletes or extends that date.
SEC. 3. Section 25740 of the Public
Resources Code is repealed.
25740. It is the intent of the Legislature in establishing this
program, to increase the amount of electricity generated from
eligible renewable energy resources per year, so that it equals at
least 20 percent of total retail sales of electricity in California
per year by December 31, 2010.
SEC. 4. Section 25740.5 of the Public
Resources Code is repealed.
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, 2012, shall
be used for the purposes specified in this chapter.
SEC. 5. Section 25742 of the Public
Resources Code is repealed.
25742. (a) Twenty percent of the funds collected pursuant to the
renewable energy public goods charge shall be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2007-2011 investment cycle. Eligibility for production
incentives under this section shall be limited to those technologies
found eligible for funds by the 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 2007-2011 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.
SEC. 6. Section 25743 of the Public
Resources Code is repealed.
25743. (a) The commission shall terminate all production
incentives awarded from the New Renewable Resources Account prior to
January 1, 2002, unless the project began generating electricity by
January 1, 2007.
(b) (1) The commission shall, by March 1, 2008, transfer to
electrical corporations serving customers subject to the renewable
energy public goods charge the remaining unencumbered funds in the
New Renewable Resources Account.
(2) The Public Utilities Commission shall ensure that each
electrical corporation allocates funds received from the commission
pursuant to paragraph (1) in a manner that maximizes the economic
benefit to all customer classes that funded the New Renewable
Resources Account.
SEC. 7. Section 25744 of the Public
Resources Code is repealed.
25744. (a) Seventy-nine percent of the money collected pursuant
to the renewable energy public goods charge shall be used for a
multiyear, consumer-based program to foster the development of
emerging renewable technologies in distributed generation
applications.
(b) Any funds used for emerging technologies pursuant to this
section shall be expended in accordance with this chapter, subject to
all of the following requirements:
(1) Funding for emerging technologies shall be provided through a
competitive, market-based process that is in place for a period of
not less than five years, and is structured to allow eligible
emerging technology manufacturers and suppliers to anticipate and
plan for increased sale and installation volumes over the life of the
program.
(2) The program shall provide monetary rebates, buydowns, or
equivalent incentives, subject to paragraph (3), to purchasers,
lessees, lessors, or sellers of eligible electricity generating
systems. Incentives shall benefit the end-use consumer of renewable
generation by directly and exclusively reducing the purchase or lease
cost of the eligible system, or the cost of electricity produced by
the eligible system. Incentives shall be issued on the basis of the
rated electrical generating capacity of the system measured in watts,
or the amount of electricity production of the system, measured in
kilowatthours. Incentives shall be limited to a maximum percentage of
the system price, as determined by the commission. The commission
may establish different incentive levels for systems based on
technology type and system size, and may provide different incentive
levels for systems used in conjunction with energy-efficiency
measures.
(3) Eligible distributed emerging technologies are fuel cell
technologies that utilize renewable fuels, including fuel cell
technologies with an emission profile equivalent or better than the
State Air Resources Board 2007 standard, and that serve as backup
generation for emergency, safety, or telecommunications systems.
Eligible renewable fuels may include wind turbines of not more than
50 kilowatts rated electrical generating capacity per customer site
and other distributed renewable emerging technologies that meet the
emerging technology eligibility criteria established by the
commission and are not eligible for rebates, buydowns, or similar
incentives from any other commission or Public Utilities Commission
program. Eligible electricity generating systems are intended
primarily to offset part or all of the consumer's own electricity
demand, including systems that are used as backup power for
emergency, safety, or telecommunications, and shall not be owned by
local publicly owned electric utilities, nor be located at a customer
site that is not receiving distribution service from an electrical
corporation that is subject to the renewable energy public goods
charge and contributing funds to support programs under this chapter.
All eligible electricity generating system components shall be new
and unused, shall not have been previously placed in service in any
other location or for any other application, and shall have a
warranty of not less than five years to protect against defects and
undue degradation of electrical generation output. Systems and their
fuel resources shall be located on the same premises of the end-use
consumer where the consumer's own electricity demand is located, and
all eligible electricity generating systems shall be connected to the
utility grid, unless the system purpose is for backup generation
used in emergency, safety, or telecommunications in California. The
commission may require eligible electricity generating systems to
have meters in place to monitor and measure a system's performance
and generation. Only systems that will be operated in compliance with
applicable law and the rules of the Public Utilities Commission
shall be eligible for funding.
(4) The commission shall limit the amount of funds available for a
system or project of multiple systems and reduce the level of
funding for a system or project of multiple systems that has
received, or may be eligible to receive, any government or utility
funds, incentives, or credit.
(5) In awarding funding, the commission may provide preference to
systems that provide tangible demonstrable benefits to communities
with a plurality of minority or low-income populations.
(6) In awarding funding, the commission shall develop and
implement eligibility criteria and a system that provides preference
to systems based upon system performance, taking into account
factors, including shading, insulation levels, and installation
orientation.
(7) At least once annually, the commission shall publish and make
available to the public the balance of funds available for emerging
renewable energy resources for rebates, buydowns, and other
incentives for the purchase of these resources.
(c) Notwithstanding Section 27540.5, the commission may expend,
until December 31, 2008, up to sixty million dollars ($60,000,000) of
the funding allocated to the Renewable Resources Trust Fund for the
program established in this section, subject to the repayment
requirements of subdivision (f) of Section 25751.
(d) Any funds for photovoltaic or solar thermal electric
technologies shall be awarded in compliance with Chapter 8.8
(commencing with Section 25780), and not with this section.
SEC. 8. Section 25744.5 of the Public
Resources Code is repealed.
25744.5. The commission shall allocate and use funding available
for emerging renewable technologies pursuant to Section 25744 and
Section 25751 to fund
photovoltaic and solar thermal electric technologies in accordance
with eligibility criteria and conditions established pursuant to
Chapter 8.8 (commencing with Section 25780).
SEC. 9. Section 25746 of the Public
Resources Code is repealed.
25746. (a) One percent of the money collected pursuant to the
renewable energy public goods charge shall be used in accordance with
this chapter to promote renewable energy and disseminate information
on renewable energy technologies, including emerging renewable
technologies, and to help develop a consumer market for renewable
energy and for small-scale emerging renewable energy technologies.
(b) If the commission provides funding for a regional accounting
system to verify compliance with the renewable portfolio standard by
retail sellers, pursuant to subdivision (b) of Section 399.13 of the
Public Utilities Code, the commission shall recover all costs from
user fees.
SEC. 10. Section 25747 of the Public
Resources Code is repealed.
25747. (a) The commission shall adopt guidelines governing the
funding programs authorized under this chapter, at a publicly noticed
meeting offering all interested parties an opportunity to comment.
Substantive changes to the guidelines may not be adopted without at
least 10 days' written notice to the public. The public notice of
meetings required by this subdivision may not be less than 30 days.
Notwithstanding any other provision of law, any guidelines adopted
pursuant to this chapter or Section 399.13 of the Public Utilities
Code, shall be exempt from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The Legislature declares that the changes made
to this subdivision by the act amending this section during the 2002
portion of the 2001-02 Regular Session are declaratory of, and not a
change in existing law.
(b) Funds to further the purposes of this chapter may be committed
for multiple years.
(c) Awards made pursuant to this chapter are grants, subject to
appeal to the commission upon a showing that factors other than those
described in the guidelines adopted by the commission were applied
in making the awards and payments. Any actions taken by an applicant
to apply for, or become or remain eligible and registered to receive,
payments or awards, including satisfying conditions specified by the
commission, shall not constitute the rendering of goods, services,
or a direct benefit to the commission.
(d) An award made pursuant to this chapter, the amount of the
award, and the terms and conditions of the grant are public
information.
SEC. 11. Section 25748 of the Public
Resources Code is repealed.
25748. (a) The commission shall report to the Legislature on or
before November 1, 2007, and annually thereafter, regarding the
results of the mechanisms funded pursuant to this chapter. The report
shall contain all of the following:
(1) A description of the allocation of funds among existing, new,
and emerging technologies, the allocation of funds among programs,
including consumer-side incentives, and the need for the reallocation
of money among those technologies.
(2) The status of account transfers and repayments.
(3) A description of the cumulative commitment of claims by
account, the relative demand for funds by account, and a forecast of
future awards.
(4) A list identifying the types and quantities of biomass fuels
used by facilities receiving funds pursuant to Section 25742 and
their impacts on improving air quality.
(5) A discussion of the progress being made toward achieving the
targets established under Section 25740 by each funding category
authorized pursuant to this chapter.
(6) A description of the allocation of funds from interest on the
accounts described in this chapter, and money in the accounts
described in subdivision (b) of Section 25751.
(7) An itemized list, including project descriptions, award
amounts, and outcomes for projects awarded funding in the prior year.
(8) Other matters the commission determines may be of importance
to the Legislature.
(b) Money may be reallocated without further legislative action
among existing, new, and emerging technologies and consumer-side
programs in a manner consistent with the report and with the latest
report provided to the Legislature pursuant to this section, except
that reallocations shall not increase the allocation established in
Section 25742.
SEC. 12. Section 25751 of the Public
Resources Code is repealed.
25751. (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
(b) The following accounts are hereby established within the
Renewable Resource Trust Fund:
(1) Existing Renewable Resources Account.
(2) Emerging Renewable Resources Account.
(3) Renewable Resources Consumer Education Account.
(c) The money in the fund may be expended, only upon appropriation
by the Legislature in the annual Budget Act, for the following
purposes:
(1) The administration of this article by the state.
(2) The state's expenditures associated with the accounting system
established by the commission pursuant to subdivision (b) of Section
399.13 of the Public Utilities Code.
(d) That portion of revenues collected by electrical corporations
for the benefit of in-state operation and development of existing and
new and emerging renewable resource technologies, pursuant to
Section 399.8 of the Public Utilities Code, shall be transmitted to
the commission at least quarterly for deposit in the Renewable
Resource Trust Fund pursuant to Section 25740.5. After setting aside
in the fund money that may be needed for expenditures authorized by
the annual Budget Act in accordance with subdivision (c), the
Treasurer shall immediately deposit money received pursuant to this
section into the accounts created pursuant to subdivision (b) in
proportions designated by the commission for the current calendar
year. Notwithstanding Section 13340 of the Government Code, the money
in the fund and the accounts within the fund are hereby continuously
appropriated to the commission without regard to fiscal year for the
purposes enumerated in this chapter.
(e) Upon notification by the commission, the Controller shall pay
all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in this chapter. The
eligibility of each award shall be determined solely by the
commission based on the procedures it adopts under this chapter.
Based on the eligibility of each award, the commission shall also
establish the need for a multiyear commitment to any particular award
and so advise the Department of Finance. Eligible awards submitted
by the commission to the Controller shall be accompanied by
information specifying the account from which payment should be made
and the amount of each payment; a summary description of how payment
of the award furthers the purposes enumerated in this chapter; and an
accounting of future costs associated with any award or group of
awards known to the commission to represent a portion of a multiyear
funding commitment.
(f) The commission may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts.
(g) The Department of Finance shall conduct an independent audit
of the Renewable Resource Trust Fund and its related accounts
annually, and provide an audit report to the Legislature not later
than March 1 of each year for which this article is operative. The
Department of Finance's report shall include information regarding
revenues, payment of awards, reserves held for future commitments,
unencumbered cash balances, and other matters that the Director of
Finance determines may be of importance to the Legislature.
SEC. 13. Section 399.8 of the Public
Utilities Code is repealed.
399.8. (a) In order to ensure that the citizens of this state
continue to receive safe, reliable, affordable, and environmentally
sustainable electric service, it is the policy of this state and the
intent of the Legislature that prudent investments in energy
efficiency, renewable energy, and research, development and
demonstration shall continue to be made.
(b) (1) Every customer of an electrical corporation shall pay a
nonbypassable system benefits charge authorized pursuant to this
article. The system benefits charge shall fund energy efficiency,
renewable energy, and research, development and demonstration.
(2) Local publicly owned electric utilities shall continue to
collect and administer system benefits charges pursuant to Section
385.
(c) (1) The commission shall require each electrical corporation
to identify a separate rate component to collect revenues to fund
energy efficiency, renewable energy, and research, development and
demonstration programs authorized pursuant to this section beginning
January 1, 2002, and ending January 1, 2012. The rate component shall
be a nonbypassable element of the local distribution service and
collected on the basis of usage.
(2) This rate component may not exceed, for any tariff schedule,
the level of the rate component that was used to recover funds
authorized pursuant to Section 381 on January 1, 2000. If the amounts
specified in paragraph (1) of subdivision (d) are not recovered
fully in any year, the commission shall reset the rate component to
restore the unrecovered balance, provided that the rate component may
not exceed, for any tariff schedule, the level of the rate component
that was used to recover funds authorized pursuant to Section 381 on
January 1, 2000. Pending restoration, any annual shortfalls shall be
allocated pro rata among the three funding categories in the
proportions established in paragraph (1) of subdivision (d).
(d) The commission shall order San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company to collect these funds commencing on January 1, 2002, as
follows:
(1) Two hundred twenty-eight million dollars ($228,000,000) per
year in total for energy efficiency and conservation activities,
sixty-five million five hundred thousand dollars ($65,500,000) in
total per year for renewable energy, and sixty-two million five
hundred thousand dollars ($62,500,000) in total per year for
research, development and demonstration. The funds for energy
efficiency and conservation activities shall continue to be allocated
in proportions established for the year 2000 as set forth in
paragraph (1) of subdivision (c) of Section 381.
(2) The amounts shall be adjusted annually at a rate equal to the
lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
(e) The commission shall ensure that each electrical corporation
allocates funds transferred by the Energy Commission 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.
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, 2013,
unless a later enacted statute deletes or extends that date.
However, after January 1, 2013, the commission is not required to
repeat any procedural step in adopting a regulation that has been
completed before January 1, 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, 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, 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.