BILL NUMBER: SB 870	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 9, 2011
	AMENDED IN ASSEMBLY  SEPTEMBER 6, 2011
	AMENDED IN ASSEMBLY  AUGUST 29, 2011
	AMENDED IN ASSEMBLY  JULY 12, 2011

INTRODUCED BY   Senators Padilla and Steinberg

                        FEBRUARY 18, 2011

   An act to add Section 25620.16 to, and to add Article 2
(commencing with Section 25621.10) to Chapter 7.2 of Division 15 of,
the Public Resources Code, and to amend Sections  384,  890,
892, 892.2, 893, 894, and 895 of, and to repeal Section 892.1 of,
the Public Utilities Code, relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 870, as amended, Padilla. Energy: Clean Energy Innovation
Program: natural gas surcharge.
   (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. Existing law requires the rate component collected for the
purposes of funding the research, development, and demonstration
programs be transferred to the Public Interest Research, Development,
and Demonstration Fund.
   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
transferred to the Public Interest Research, Development, and
Demonstration Fund and be used for the purposes of the Public
Interest Research, Demonstration, and Development Program.
   This bill would expressly provide that expenditure of moneys
collected for public interest research, development, and
demonstration before January 1, 2012, would be expended for the
Public Interest Research, Demonstration, and Development Program.
   The bill would require the Energy Commission to establish and
administer the California Energy Innovation Program (CEIP) to fund
research, development, and demonstration projects that may lead to
technological advancement and breakthroughs to overcome those
barriers that prevent the achievement of the state's energy policy
goals. The bill would require the Energy Commission to convene, no
less than twice a year, meetings of the CEIP Coordinating Council
consisting of members representing specified entities and would
require the council to identify the technological challenges that
most warrant funding under the CEIP and opportunities to leverage
funding of projects and to make recommendations to avoid funding
duplicative projects. The bill would require the Energy Commission to
adopt regulations or modify existing regulations to implement the
CEIP. The bill would require the Energy Commission to consult with
the CEIP 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 CEIP Coordinating Council and
the Treasurer to establish terms that may be imposed as conditions
for the receipt of CEIP 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 CEIP. The bill would require the PUC to fund mechanisms to
finance comprehensive energy efficiency retrofits of specified
building sectors.
   This bill would declare the intent of the Legislature in enacting
this act that the public goods charge collected on or before December
31, 2011, to fund research, development, and demonstration shall be
expended pursuant to the law in effect January 1, 2012 and the public
goods charge collected for this purpose on and after January 1,
2012, shall be expended pursuant to the law in effect on and after
the effective date of this act. 
   (2) Existing law requires the Public Utilities Commission to
require, until January 1, 2012, an electrical corporation to identify
a separate electrical rate component (public goods charge) to fund
energy efficiency, renewable energy, and research, development, and
demonstration programs that enhance system reliability and provide
in-state benefits. 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 Research, Development, and Demonstration Program.
 
   This bill would expressly provide that public goods charge for
public interest research, development, and demonstration projects
collected before January 1, 2012, be deposited into the Public
Interest Research, Development, and Demonstration Fund and expended
for the purposes of the Public Interest Research, Development, and
Demonstration Program. The bill would establish the Clean Energy
Innovation Program Fund (CEIP Fund) in the State Treasury and would
require public goods charge collected on and after January 1, 2012,
be deposited into the CEIP Fund and expended by the State Energy
Resources Conservation and Development Commission (Energy
Commission), upon appropriation, for specified purposes. The bill
would require the Energy Commission, in making awards from the CEIP
Fund to minimize overhead expenditures on the award recipients'
contracts. The bill would prohibit the Energy Commission from using
sole source method or interagency agreement in making awards unless
specified conditions are met.  
   (2) 
    (3)  Existing law requires the Public Utilities
Commission to establish a surcharge on all natural gas consumed in
the state to fund certain low-income assistance programs,
cost-effective energy efficiency and conservation activities, and
public interest research and development. Existing law requires a
public utility gas corporation, as defined, to collect the surcharge
from natural gas consumers, as specified, and to remit the moneys
collected to the State Board of Equalization (state board) on a
quarterly basis. Existing law requires persons consuming natural gas
delivered by an interstate pipeline to pay the surcharge to the state
board. Existing law requires every public utility gas corporation
and every person consuming natural gas transported by a provider
other than the public utility gas corporation to file a quarterly
return with the state board in the form prescribed by the state
board. The money from the surcharge is transmitted by the state board
to the Treasurer for deposit in the Gas Consumption Surcharge Fund
and is continuously appropriated to specified entities, including to
the commission, or to an entity designated by the commission, to fund
low-income assistance programs, cost-effective energy efficiency and
conservation activities, and public interest research and
development not adequately provided by the competitive and regulated
markets.
   This bill would require the commission to establish rates that are
sufficient to fund the specified low-income assistance programs,
cost-effective energy efficiency and conservation activities, and
public interest research and development, and would require the
surcharges imposed on natural gas customers of an interstate gas
pipeline to be equal to the rate component imposed upon the customers
of a public utility gas corporation to fund those programs. The bill
would require only persons consuming natural gas delivered by an
interstate pipeline to pay the surcharge quarterly to the state board
and require only those persons consuming natural gas transported by
a provider other than the public utility gas corporation to file a
quarterly return with the state board. A public utility gas
corporation would continue to collect the surcharge to fund the
specified programs, but would not remit the moneys collected to the
state board. The bill would repeal existing provisions relieving
public utility gas corporations from liability to collect the
surcharges for specified uncollected and worthless accounts. The bill
would make other conforming changes. 
   (3) 
    (4)  This bill would not become operative unless AB 724
of the 2011-12 Regular Session of the Legislature is enacted on or
before January 1, 2012.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 25620.16 is added to the Public Resources Code,
to read:
   25620.16.  This chapter applies to the expenditure of funds for
research, development, and demonstration collected pursuant to
Section 399.8 of the Public Utilities Code before January 1, 2012.
  SEC. 2.  Article 2 (commencing with Section 25621.10) is added to
Chapter 7.2 of Division 15 of the Public Resources Code, to read:

      Article 2.  Clean Energy Innovation Program


   25621.10.  This article shall be known and may be cited as the
Clean Energy Innovation Program.
   25621.11.  The Legislature finds and declares all of the
following:
   (a) California has been a national leader in clean energy by
establishing ambitious goals, policies, and programs to increase
energy efficiency and generation from renewable energy sources.
   (b) Achieving the state's 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 significant technological and other challenges
relating to energy storage, renewable energy and its integration into
the electrical grid, energy efficiency, integration of electric
vehicles into the electrical grid, accurately forecasting the
availability of renewable energy for integration into the grid,
impacts of energy generation, and additional areas identified by the
CEIP Coordinating Council.
   (d) Breakthroughs to overcome these technological challenges and
to enable the state to achieve its energy policy 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 energy policy goals.
   25621.12.  (a) The Clean Energy Innovation Program (CEIP) 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 energy policy goals.
   (b) The commission shall develop and administer the program
consistent with this article.
   25621.13.  (a) The commission shall, no less than twice a year,
convene a meeting of the CEIP 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 Company.
   (3) One representative from Southern California Edison Company.
   (4) One representative from San Diego Gas and Electric Company.
   (5) One representative from Southern California Gas Company.
   (6) One representative from any participating publicly owned
utility.
   (7) One representative from the Public Utilities Commission.
   (8) One representative from the Independent System Operator.
   (9) One representative from the State Air Resources Board.
   (10) One representative from the Division of Ratepayer Advocates
within the Public Utilities Commission.
   (11) Two representatives from the building industry, with one
appointed by the Senate Committee on Rules and one appointed by the
Speaker of the Assembly.
   (12) Two representatives from consumer organizations, with one
appointed by the Senate Committee on Rules and one appointed by the
Speaker of the Assembly.
   (13) Two representatives from environmental organizations, with
one appointed by the Senate Committee on Rules and one appointed by
the Speaker of the Assembly.
   (14) Two representatives of environmental justice groups, with one
appointed by the Senate Committee on Rules and one appointed by the
Speaker of the Assembly.
   (15) Two representatives from a university, college, or other
research institution, with one appointed by the Senate Committee on
Rules and one appointed by the Speaker of the Assembly.
   (16) Two representatives of clean energy businesses, associations,
or investors appointed by the Governor.
   (17) Two representatives of labor organizations appointed by the
Governor.
   (18) Two at-large members appointed by the Governor.
   (19) (A) Two 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 nongovernmental member of the council shall serve a term
of three years.
   (c) The council shall annually identify the technological and
other challenges that are the most significant barriers to achieving
the state's energy policy goals for which CEIP funding is most
warranted.
   (d) The council shall identify opportunities for leveraged funding
of research, development, and demonstration projects, and make
recommendations to help the agencies represented on the council avoid
funding projects that would duplicate projects already being funded
by the commission, the Public Utilities Commission, the State Air
Resources Board, or any other public agency or private organization.
   25621.14.  (a) The commission shall expend CEIP funds for projects
and program implementation 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 barriers to achieving the state's
energy policy goals, including energy storage, renewable energy and
its integration into the electrical grid, energy efficiency,
integration of electric vehicles into the electrical grid, accurately
forecasting the availability of renewable energy for integration
into the grid, impacts of energy generation, and other significant
technological barriers identified by the CEIP Coordinating Council
pursuant to Section 25621.13.
   (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 to
various geographic regions of California to the extent possible and
consistent with the provisions of this article.
   (5) Maximizes expenditure of funds for research, development, and
demonstration projects and minimizes expenditure of funds for
administration and overhead costs.
   (b) Utilities may receive CEIP funds only if they participate in
the program.
   (c) The commission shall not award or expend CEIP funds for any
purposes except as provided in this article. 
   (d) The commission should seek to minimize overhead expenditures
on the University of California's and all other award recipients'
contracts pursuant to Chapter 14.27 (commencing with Section 67325)
of Part 40 of Division 5 of Title 3 of the Education Code. 

   (d) The commission should seek to minimize overhead expenditures
on the award recipients' contracts. 
   25621.15.  (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 article.
   (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
energy policy goals.
   (c) The regulations shall require each award recipient, as a
condition of receiving CEIP funds, to agree to any terms the
commission determines are appropriate for the state to accrue
royalties that may derive from CEIP 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.
   25621.16.  The commission, prior to awarding any CEIP funds, and
in consultation with the CEIP 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 energy policy goals. The commission may
require CEIP awardees to report progress and outcomes of each funded
project up to five years past the agreement end term.
   25621.17.  The commission, prior to awarding any CEIP funds, and
in consultation with the CEIP 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 CEIP 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 energy policy goals.
   25621.18.  (a) The commission may solicit applications and award
CEIP funds using a sealed competitive bid, interagency agreement, or
sole source method.
   (b) A sealed competitive bid method shall be used in all cases in
which a research project can be described with sufficient specificity
so that bids can be evaluated against specifications and criteria
set forth in the solicitation for bids.
   (c) The commission shall not award CEIP funds  to the
University of California  through the sole source or
interagency agreement method for a research project for which funds
could be awarded through a sealed competitive bid method. 
Notwithstanding any other law, standard terms and conditions that
generally apply to contracts between any state agency and the
University of California do not automatically preclude the award of
CEIP funds to the University of California through the sealed
competitive bid method.   Notwithstanding any other law,
standard terms and co   nditions that generally apply to
contracts between the commission and any entities, including state
entities, do not automatically preclude the award of CEIP funds
through the sealed competitive bid method. 
   (d) If an award cannot be made using the competitive bid method
pursuant to subdivision (b), the commission, in accordance with
subdivision (e) and in consultation with the Department of General
Services, may provide awards on a sole source basis when the cost to
the state is reasonable and any of the following apply:
   (1) The proposal was unsolicited and meets the evaluation criteria
of this article.
   (2) The expertise, service, or product is unique.
   (3) The award funds the next phase of a multiphased proposal and
the existing agreement is being satisfactorily performed. 
   (e) (1) The commission shall not use a sole source basis for an
award pursuant to subdivision (d), or a sole source or interagency
agreement for an award to the University of California, unless both
of the following conditions are met:  
   (e) (1) The commission shall not use a sole source or interagency
agreement for an award, unless both of the following conditions are
met: 
   (A) The commission, at least 60 days prior to making an award
pursuant to this subdivision, notifies the Joint Legislative Budget
Committee and the relevant policy committees in both houses of the
Legislature, in writing, of its intent to take the proposed action.
   (B) The Joint Legislative Budget Committee either approves or does
not disapprove the proposed action within 60 days from the date of
notification required by subparagraph (A). 
   (2) It is the intent of the Legislature to enact this subdivision
to ensure legislative oversight for awards made on a sole source
basis, or awards to the University of California through a sole
source or interagency agreement.  
   (2) It is the intent of the Legislature to enact this subdivision
to ensure legislative oversight for awards made on a sole source
basis, or through an interagency agreement. 
   (f) The commission shall give priority to California-based
entities in making awards pursuant to this article.
   (g) The provisions of this section are severable. If any provision
of this section or its application is held to be invalid, that
invalidity does not affect other provisions or applications that can
be given effect without the invalid provision or application.
   25621.19.  (a) On or before March 31 of each year, the commission
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 the award, and a description of how the
project may lead to technological advancement or breakthroughs to
overcome barriers to achieving the state's energy policy goals.
   (2) A brief description of each CEIP-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
25621.16.
   (3) A brief description of each CEIP-funded project for which an
award was made in 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 energy
policy goals.
   (4) A list and description of the technological challenges that
the CEIP Coordinating Council identifies as the most significant
barriers to achieving the state's energy policy goals, as identified
by the council pursuant to Section 25621.13 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
CEIP-funded projects.
   SEC. 3.    Section 384 of the   Public
Utilities Code   is amended to read: 
   384.  (a) Funds transferred to the  State  Energy
 Resources Conservation and Development  Commission
pursuant to this article for purposes of public interest research,
development, and demonstration  that are collected prior to
January 1, 2012,  shall be transferred to the Public Interest
Research, Development, and Demonstration Fund, which is hereby
created in the State Treasury  , to be available for expenditure
pursuant to Chapter 7.1 (commencing with Section 25620) of Division
15 of   the Public Resources Code. Funds collected, on and
after January 1, 2012, for those purposes shall be transferred to the
Clean Energy Innovation Program Fund, which is hereby created in the
State Treasury to be available, upon appropriation, for expenditure
pursuant to Article 2 (commencing with Se   ction 25621.10)
of Chapter 7.2 of Division 15 of the Public Resources Code  .
The fund is a trust fund and shall contain money from all interest,
repayments, disencumbrances, royalties, and any other proceeds
appropriated, transferred, or otherwise received for purposes
pertaining to public interest research, development, and
demonstration. Any appropriations that are made from the fund shall
have an encumbrance period of not longer than two years, and a
liquidation period of not longer than four years. 
   (b) Funds deposited in the Public Interest Research, Development,
and Demonstration Fund may be expended for projects that serve the
energy needs of both stationary and transportation purposes if the
research provides an electricity ratepayer benefit. 

   (c) 
    (b)  The  State  Energy
Resources Conservation and Development  Commission shall
report annually to the appropriate budget committees of the
Legislature on any encumbrances or liquidations that are outstanding
at the time the  commission's   Energy
Commission's  budget is submitted to the Legislature for review.

   SEC. 3.   SEC. 4.   Section 890 of the
Public Utilities Code is amended to read:
   890.  (a) The commission shall establish rates that are sufficient
to fund low-income assistance programs required by Sections 739.1,
739.2, and 2790 and cost-effective energy efficiency and conservation
activities and public interest research and development authorized
by Section 740 and not adequately provided by the competitive and
regulated markets.
   (b) Except as specified in Section 898, a public utility gas
corporation, as defined in subdivision (b) of Section 891, shall
collect the rates imposed pursuant to subdivision (a) from any person
consuming natural gas in this state who receives gas service from
the public utility gas corporation.
   (c) Except as specified in Section 898, all persons consuming
natural gas in this state that has been transported by an interstate
pipeline, as defined in subdivision (c) of Section 891, shall be
liable for a surcharge equal to the rate component imposed to fund
low-income assistance programs, cost-effective energy efficiency and
conservation activities, and public interest research and development
pursuant to subdivision (a).
   (d) The commission shall annually determine the amount of money
required for the following year to administer this chapter and fund
the natural gas related programs described in subdivision (a) for the
service territory of each public utility gas corporation.
   (e) The commission shall annually establish a rate for each class
of customer for the service territory of each public utility gas
corporation. A customer of an interstate gas pipeline, as defined in
subdivision (c) of Section 891, shall pay a surcharge that is equal
to the same rate as the customer would pay if the customer received
service from the public utility gas corporation in whose service
territory the customer is located or, if the customer is not located
within the service territory of a public utility gas corporation, the
applicable surcharge of the public utility gas corporation with the
service territory nearest the customer. The commission shall
determine the total volume of retail natural gas transported within
the service territory of a utility gas provider, that is not subject
to exemption pursuant to Section 896, for the purpose of establishing
the surcharge rate.
   (f) The commission shall allocate the appropriate rate adjustment
and surcharge for gas used by all customers, including those
customers who were not subject to the surcharge prior to January 1,
2012.
   (g) The commission shall notify the State Board of Equalization of
the surcharge for each class of customer served by an interstate
pipeline in the service territory of a public utility gas
corporation.
   (h) The State Board of Equalization shall notify each person who
consumes natural gas delivered by an interstate pipeline of the
surcharge for each class of customer within the service territory of
a public utility gas corporation.
   (i)  Public utility gas corporations shall continue to collect in
rates those costs of programs described in subdivision (a) that are
uncollected prior to the operative date of this article.
   SEC. 4.   SEC. 5.   Section 892 of the
Public Utilities Code is amended to read:
   892.  Persons consuming natural gas delivered by an interstate
pipeline shall pay the surcharge quarterly to the State Board of
Equalization in the form of remittances. The board shall transmit the
payments to the Treasurer who shall deposit the payments in the Gas
Consumption Surcharge Fund, which is hereby created in the State
Treasury.
   SEC. 5.   SEC. 6.   Section 892.1 of the
Public Utilities Code is repealed.
   SEC. 6.   SEC. 7.   Section 892.2 of the
Public Utilities Code is amended to read:
   892.2.  On or before the last day of the month following each
calendar quarter, a return for the preceding quarterly period shall
be filed with the State Board of Equalization, in such form as the
board may prescribe. A return shall be filed by every person
consuming, as defined in this article, natural gas transported by a
provider other than the public utility gas corporation. The return
shall be signed by the person required to file the return or by his
or her duly authorized agent.
   SEC. 7.   SEC. 8.   Section 893 of the
Public Utilities Code is amended to read:
   893.  The State Board of Equalization shall administer the
surcharge imposed pursuant to this article that is remitted to it in
accordance with the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code.
   SEC. 8.   SEC. 9.   Section 894 of the
Public Utilities Code is amended to read:
   894.  The State Board of Equalization may collect any unpaid
surcharge imposed pursuant to this article that is to be remitted to
it pursuant to Section 892.2.
   SEC. 9.   SEC. 10.   Section 895 of the
Public Utilities Code is amended to read:
   895.  Notwithstanding Section 13340 of the Government Code, moneys
in the Gas Consumption Surcharge Fund are continuously appropriated,
without regard to fiscal years, as follows:
   (a) To the commission or an entity designated by the commission to
fund programs described in subdivision (a) of Section 890. If the
commission designates the Energy Commission to receive funds for
public interest research and development, the Energy Commission may
administer the program pursuant to Article 2 (commencing with Section
25621.10) of Chapter 7.2 of Division 15 of the Public Resources
Code.
   (b) To pay the commission for its costs in carrying out its duties
and responsibilities under this article.
   (c) To pay the State Board of Equalization for its costs in
administering this article.
  SEC. 10.   SEC. 11.   It is the intent of
the Legislature in enacting this act that the public goods charge
collected on or before December 31, 2011, pursuant to Section 399.8
of the Public Utilities Code to fund research, development, and
demonstration, shall be expended pursuant to the provisions of law
that are in effect January 1, 2012. The public goods charge collected
for this purpose on and after January 1, 2012, shall be expended
pursuant to Article 2 (commencing with Section 25621.10) of Chapter
7.2 of Division 15 of the Public Resources Code.
   SEC. 11.   SEC. 12.   This act shall not
become operative unless Assembly Bill 724 of the 2011-2012 Regular
Session of the Legislature is enacted on or before January 1, 2012.
   SEC. 13.    Section 384 of the Public Utilities Code
as amended by this act shall prevail over that section as amended by
Assembly Bill 724 of the 2011-12 Regular Session. 
   SEC. 14.    It is the intent of the Legislature, in
enacting Section 3 of this act, to ensure the continued funding for
the implementation of Chapter 7.1 (commencing with Section 25600) of
Division 15 of the Public Resources Code from funds collected prior
to January 1, 2012, through the existing appropriation enacted by the
Budget Act of 2011, and to supersede Section 384 of the Public
Utilities Code, as amended by Assembly Bill 724 of the 2011-12
Regular Session.