BILL NUMBER: SB 454	CHAPTERED
	BILL TEXT

	CHAPTER  591
	FILED WITH SECRETARY OF STATE  OCTOBER 8, 2011
	APPROVED BY GOVERNOR  OCTOBER 8, 2011
	PASSED THE SENATE  SEPTEMBER 9, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2011
	AMENDED IN ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN ASSEMBLY  AUGUST 26, 2011
	AMENDED IN ASSEMBLY  JULY 12, 2011
	AMENDED IN ASSEMBLY  JUNE 29, 2011
	AMENDED IN SENATE  MAY 31, 2011
	AMENDED IN SENATE  MAY 4, 2011
	AMENDED IN SENATE  APRIL 12, 2011
	AMENDED IN SENATE  MARCH 29, 2011

INTRODUCED BY   Senator Pavley

                        FEBRUARY 16, 2011

   An act to amend Section 25900 of, and to add Section 25402.11 to,
the Public Resources Code, and to amend Section 399.4 of the Public
Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 454, Pavley. Energy efficiency standards.
   (1) Existing law establishes the State Energy Resources
Conservation and Development Commission and vests with the commission
jurisdiction over specified matters related to energy. Existing law
requires the Attorney General, upon the request of the commission, to
petition a court of competent jurisdiction to enjoin violations of
law that is within the subject matter of the commission. Existing law
requires the commission to prescribe, by regulation, appliance
efficiency standards.
   This bill would authorize the commission to establish an
administrative enforcement process to enforce the above standards.
The bill would provide for the assessment of civil penalties by the
courts or administrative civil penalties by the commission for a
violation of the above standards. The bill would require the
penalties collected to be deposited in the Appliance Efficiency
Enforcement Subaccount, which this bill would establish in the Energy
Resources Program Account, and would authorize the commission to
expend the moneys in the subaccount, upon appropriation by the
Legislature, as specified. The bill would require the court, upon
granting of relief for a violation of the above standards, to award
the commission the reasonable costs incurred by the commission in
investigating and prosecuting the action. The bill would prohibit the
commission from initiating an administrative enforcement process
pursuant to those regulations under specified circumstances and until
certain events have taken place.
   (2) Existing law provides that it is the policy of this state and
the intent of the Legislature that the commission administer
cost-effective energy efficiency programs authorized pursuant to
existing statutory authority. Existing law provides for the
regulation of public utilities under the Public Utilities Act. A
violation of the Public Utilities Act is a crime.
   This bill would prohibit a public utility from issuing rebates or
incentives for energy efficiency improvements unless the recipient of
the rebate or incentive certifies that the improvement or
installation has complied with applicable permitting requirements and
licensing requirements, if applicable. Because a violation of this
provision would be a crime under the Public Utilities Act, the bill
would impose a state-mandated local program.
   (3) 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.


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

  SECTION 1.  It is the intent of the Legislature to enact
legislation that maximizes the energy saved by the state's various
energy efficiency statutes, regulations, and programs.
  SEC. 2.  The Legislature finds and declares all of the following:
   (a) California's appliance energy efficiency standards, specified
in Article 4 (commencing with Section 1601) of Chapter 4 of Division
2 of Title 20 of the California Code of Regulations, represent a
state resource for accomplishing increased energy efficiency in
appliances. These standards are recognized as leading the nation in
energy savings and serving as one of the primary energy policy tools
that has resulted in California's per capita energy use staying
essentially constant over the past 30 years while that of the rest of
the United States increased steadily by nearly 50 percent.
   (b) The appliance efficiency standards deliver cost-effective
energy savings to consumers. They are an important component of the
state's programs to manage its energy consumption, conserve natural
resources, and improve the quality of life for all its citizens. The
Governor and Legislature recognize that significant quantities of
appliances are sold and offered for sale in California that do not
meet the state's energy efficiency standards. The products needlessly
consume resources and saddle consumers with hidden long-term costs
after the initial purchase. Furthermore, inadequate certification of
appliances sold in California undermines the state's ability to
ensure that products sold in California meet the state's efficiency
standards.
   (c) These violations result in a substantial financial loss to
consumers who purchase energy efficiency goods and services, and
represent unfair competition that dramatically impacts the economic
viability of legitimate businesses. It is critical for California to
maintain a business climate favorable to legitimate competition, so
that conscientious contractors, manufacturers, distributors,
retailers, Home Energy Rating System raters, and other businesses are
able to sustain their businesses against unfair competition.
  SEC. 3.  Section 25402.11 is added to the Public Resources Code, to
read:
   25402.11.  (a) (1) The commission may adopt regulations
establishing an administrative enforcement process for a violation of
a regulation adopted pursuant to subdivision (c) of Section 25402
and for the assessment of an administrative civil penalty not to
exceed two thousand five hundred dollars ($2,500) for each violation.
The process shall comply with the requirements of Chapter 4
(commencing with Section 11400) and Chapter 4.5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.
   (2) In assessing the amount of an administrative penalty, the
commission shall consider all of the following factors:
   (A) The nature and seriousness of the violation.
   (B) The number of violations.
   (C) The persistence of the violation.
   (D) The length of time over which the violation occurred.
   (E) The willfulness of the violation.
   (F) The violator's assets, liabilities, and net worth.
   (G) The harm to consumers and to the state that resulted from the
amount of energy wasted due to the violation.
   (b) If the commission finds that a violation of the regulations
adopted pursuant to subdivision (c) of Section 25402 has occurred or
is threatening to occur, the commission may refer the matter to the
Attorney General to petition a court to enjoin the violation. The
court may grant prohibitory or mandatory injunctive relief as
warranted by issuing a temporary restraining order, preliminary
injunction, or permanent injunction, and may assess a civil penalty
not to exceed two thousand five hundred dollars ($2,500) for each
violation, considering the factors specified in paragraph (2) of
subdivision (a).
    (c) Penalties collected pursuant to this section shall be
deposited into the Appliance Efficiency Enforcement Subaccount, which
is hereby established in the Energy Resources Program Account. The
moneys in the Appliance Efficiency Enforcement Subaccount may be
expended by the commission, upon appropriation by the Legislature,
for the education of the public regarding appliance energy efficiency
and for the enforcement of the regulations adopted pursuant to
subdivision (c) of Section 25402.
   (d) An order imposing an administrative civil penalty shall be
subject to judicial review pursuant to subdivisions (a) and (b) of
Section 25534.2.
   (e) A person shall not be liable for a civil penalty pursuant to
subdivision (b) if that person is subject to an administrative civil
penalty pursuant to subdivision (a).
   (f) In a civil action brought on behalf of the commission pursuant
to this section, upon granting relief, the court shall award to the
commission the reasonable costs incurred by the commission in
investigating and prosecuting the action.
   (g) The commission shall not initiate an administrative
enforcement process pursuant to the regulations adopted pursuant to
this section against an entity for the unlawful sale or the unlawful
offer for sale of an appliance if both of the following apply:
   (1) The appliance fully complies with all of the requirements of
the regulations adopted pursuant to subdivision (c) of Section 25402.

   (2) The only basis for the commission's potential enforcement
action is that the appliance is not considered to be in compliance
because of the commission's delay in reviewing and processing
information submitted to it that demonstrates full compliance.
   (h) In addition to the prohibitions specified in subdivision (g),
the commission shall not initiate an administrative enforcement
process pursuant to the regulations adopted pursuant to this section
for a violation of a standard adopted pursuant to subdivision (c) of
Section 25402 until both of the following occur:
   (1) No fewer than 60 days have elapsed since the date when the
standard was published in the California Register.
   (2) No fewer than 30 days have elapsed since the date when the
alleged violator received written notice of the alleged violation and
date when the commission provided public notice of the standard.
  SEC. 4.  Section 25900 of the Public Resources Code is amended to
read:
   25900.  Except as provided in Sections 25402.11 and 25531, if the
commission finds that any provision of this division is violated, or
a violation is threatening to take place that constitutes an
emergency requiring immediate action to protect the public health,
welfare, or safety, the Attorney General, upon request of the
commission, shall petition a court to enjoin the violation. The court
may grant prohibitory or mandatory injunctive relief as warranted by
way of temporary restraining order, preliminary injunction, and
permanent injunction.
  SEC. 5.  Section 399.4 of the Public Utilities Code is amended to
read:
   399.4.  (a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the safe
and reliable operation of the electric distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall continue to administer cost-effective energy
efficiency programs authorized pursuant to existing statutory
authority.
   (2) As used in this section, the term "energy efficiency"
includes, but is not limited to, cost-effective activities to achieve
peak load reduction that improve end-use efficiency, lower customers'
bills, and reduce system needs.
   (b) (1) Any rebates or incentives offered by a public utility for
an energy efficiency improvement or installation of energy efficient
components, equipment, or appliances in buildings shall be provided
only if the recipient of the rebate or incentive certifies that the
improvement or installation has complied with any applicable
permitting requirements and, if a contractor performed the
installation or improvement, that the contractor holds the
appropriate license for the work performed.
   (2) This subdivision does not imply or create authority or
responsibility, or expand existing authority or responsibility, of a
public utility for the enforcement of the building energy and water
efficiency standards adopted pursuant to subdivision (a) or (b) of
Section 25402 of the Public Resources Code, or appliance efficiency
standards and certification requirements adopted pursuant to
subdivision (c) of Section 25402 of the Public Resources Code.
   (c) The commission, in evaluating energy efficiency investments
under its existing statutory authority, shall also ensure that local
and regional interests, multifamily dwellings, and energy service
industry capabilities are incorporated into program portfolio design
and that local governments, community-based organizations, and energy
efficiency service providers are encouraged to participate in
program implementation where appropriate.
  SEC. 6.  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.