Amended in Senate June 26, 2014

Amended in Senate July 9, 2013

Amended in Senate June 25, 2013

Amended in Senate June 11, 2013

Amended in Assembly May 13, 2013

Amended in Assembly April 22, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 793

Introduced by Assembly Member Gray

begin delete

(Principal coauthor: Senator Cannella)

end delete begin insert

(Coauthor: Assembly Member Olsen)

end insert begin insert

(Coauthors: Senators Berryhill and Cannella)

end insert

February 21, 2013

An act to begin delete amend Section 399.30 of the Public Utilities end delete begin insert add Division 23.4 (commencing with Section 33400) to the Public Resources end insert Code, relating to begin delete renewable energy. end delete begin insert the San Joaquin Valley Groundwater Conservancy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 793, as amended, Gray. begin delete Renewable energy: publicly owned electric utility: hydroelectric generation facility. end delete begin insert San Joaquin Valley Groundwater Conservancy. end insert

begin insert

Existing law authorizes various conservancies to acquire, manage, direct the management of, and conserve public lands in the state.

end insert begin insert

This bill would establish the San Joaquin Valley Groundwater Conservancy, to undertake various activities related to the San Joaquin Valley, as defined, and would prescribe the management, powers, and duties of the conservancy. The bill would create the San Joaquin Valley Groundwater Conservancy Fund in the State Treasury. Moneys in the fund would be available, upon appropriation, for the purposes of the conservancy.

end insert begin delete

The California Renewables Portfolio Standard Program, referred to as the RPS program, requires a retail seller of electricity, as defined, and local publicly owned electric utilities to purchase specified minimum quantities of electricity products from eligible renewable energy resources, as defined, for specified compliance periods, sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 20% of retail sales for the period from January 1, 2011, to December 31, 2013, inclusive, 25% of retail sales by December 31, 2016, and 33% of retail sales by December 31, 2020, and in all subsequent years. The RPS program, consistent with the goals of procuring the least-cost and best-fit eligible renewable energy resources that meet project viability principles, requires that all retail sellers procure a balanced portfolio of electricity products from eligible renewable energy resources, as specified, referred to as portfolio content requirements.

end delete begin delete

This bill would provide that a local publicly owned electric utility is not required to procure additional eligible renewable energy resources in excess of specified levels, if it receives 50% or greater of its annual retail sales from its own hydrodelectric generation meeting specified requirements.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Division 23.4 (commencing with Section 33400)
is added to the end insert begin insert Public Resources Code end insert begin insert , to read: end insert

begin insert

 

Division  begin insert 23.4. end insert   San Joaquin Valley Groundwater
Conservancy

 

Chapter   begin insert 1. end insert General Provisions and Definitions

 

begin insert 33400. end insert   

This division shall be known, and may be cited, as the
San Joaquin Valley Groundwater Conservancy Act.

begin insert 33401. end insert   

The Legislature finds and declares all of the following:

(a) The San Joaquin Valley is a globally significant area, rich
in agricultural production, which provides food for domestic
consumption and sale abroad.

(b) The San Joaquin Valley is an important part of the state’s
economy, contributing billions of dollars a year to the state’s gross
domestic product through, among other things, the production of
agricultural products, timber resources, ranching, mining, tourism,
and recreation.

(c) Groundwater has enabled the San Joaquin Valley to become
one of the most productive agricultural regions in the nation, and
overdraft of this precision resource has the potential to harm the
short- and long-term viability of agricultural production in the
San Joaquin Valley.

(d) In cooperation with local governments, private business,
nonprofit organizations, and the public, a San Joaquin Valley
Groundwater Conservancy can help do all of the following:

(1) Provide increased opportunities for responsible groundwater
management.

(2) Protect, conserve, and restore the region’s underground
aquifers and surface water resources.

(3) Reduce the risk of groundwater overdraft, including the risk
of subsidence.

(4) Protect and improve water quality.

(5) Assist the regional economy through the operation of the
conservancy’s program.

(6) Identify the highest priority projects and initiatives for which
funding is needed.

(7) Support efforts that advance both groundwater management
and the economic well-being of San Joaquin Valley residents in a
complementary manner.

begin insert 33402. end insert   

For the purposes of this division, the following terms
have the following meanings:

(a) “Board” means the Governing Board of the San Joaquin
Valley Groundwater Conservancy.

(b) “Conservancy” means the San Joaquin Valley Groundwater
Conservancy.

(c) “Fund” means the San Joaquin Valley Groundwater
Conservancy Fund created pursuant to Section 33455.

(d) “Local public agency” means a city, county, district, or
joint powers authority.

(e) “Nonprofit organization” means a private, nonprofit
organization that qualifies for exempt status under Section
501(c)(3) of Title 26 of the United States Code, and whose
charitable purposes are consistent with the purposes of the
conservancy as set forth in this division.

(f) “Region” or “San Joaquin Valley” means the area lying
within the Counties of Fresno, Kern, Kings, Madera, Merced, San
Joaquin, Stanislaus, and Tulare.

(g) “Tribal organization” means an Indian tribe, band, nation,
or other organized group or community, or a tribal agency
authorized by a tribe, which is recognized as eligible for special
programs and services provided by the United States to Indians
because of their status as Indians and is identified on pages 47868
to 47873, inclusive, of Number 155 of Volume 77 (August 10, 2012)
of the Federal Register, as that list may be updated or amended
from time to time.

 

Chapter   begin insert 2. end insert San Joaquin Valley Groundwater
Conservancy

 

begin insert 33420. end insert   

There is in the Resources Agency the San Joaquin
Valley Groundwater Conservancy, which is created as a state
agency to do all of the following, working in collaboration and
cooperation with local governments and interested parties:

(a) Provide increased opportunities for tourism and recreation.

(b) Protect, conserve, and restore the region’s underground
aquifers and surface water resources.

(c) Reduce the risk of groundwater overdraft, including the risk
of subsidence.

(d) Protect and improve water quality.

(e) Assist the regional economy through the operation of the
conservancy’s program.

(f) Identify the highest priority projects and initiatives for which
funding is needed.

(g) Undertake efforts to enhance sustainable groundwater
management.

(h) Support efforts that advance both groundwater management
and the economic well-being of San Joaquin Valley residents in a
complementary manner.

(i) Provide opportunities for adoption and promotion of water
use efficiency projects, especially as they reduce the risk of
groundwater overdraft, including, but not limited to, drip irrigation
projects.

begin insert 33421. end insert   

(a) The board shall consist of 15 voting members and
three nonvoting liaison advisers, appointed or designated as
follows:

(1) The 15 voting members of the board shall consist of all of
the following:

(A) The Secretary of the Resources Agency, or his or her
designee.

(B) The Director of Finance, or his or her designee.

(C) Three public members appointed by the Governor, who are
not elected officials, to represent statewide interests.

(D) One public member appointed by the Speaker of the
Assembly, who is not an elected official, to represent statewide
interests.

(E) One public member appointed by the Senate Committee on
Rules, who is not an elected official, to represent statewide
interests.

(F) One member for each of the eight counties which make up
the San Joaquin Valley, who shall be a member of the board of
supervisors of their respective county. Each member shall be
selected by the counties, according to the following procedure:

(i) Each county board of supervisors shall select a member of
their board to be appointed as a member of the conservancy board.
An alternative member may also be appointed.

(ii) The initial appointment of a member for each county shall
be made no later than March 1, 2015. A subsequent appointment
to a regular term on the board shall be made before the date
specified in Section 33422 for the commencement of that term. A
vacancy occurring before the end of a term shall be filled for the
remainder of the term within 60 days of the vacancy.

(iii) If the board of supervisors of a county does not appoint a
member to the board within the timeframe specified in clause (ii),
the Governor shall appoint one of the supervisors to serve as the
board member for the county.

(2) The three nonvoting liaison advisers who serve in an
advisory, nonvoting capacity shall consist of all of the following:

(A) One representative of the United States Geologic Survey,
designated by the Administrator of the United States Secretary of
the Interior.

(B) One representative of the United States Environmental
Protection Agency, designated by the Administrator of the United
States Environmental Protection Agency.

(C) One representative of the United States Department of
Agriculture, designated by the United States Secretary of
Agriculture.

(b) Appointing powers shall seek to include individuals from a
breadth of backgrounds.

begin insert 33422. end insert   

Members and alternates, if any, shall serve terms as
follows:

(a) The members appointed pursuant to subparagraphs (C) to
(E), inclusive, of paragraph (1) of subdivision (a) of Section 33421
shall serve at the pleasure of the appointing power.

(b) The members and alternates, if any, appointed under
subparagraph (F) of paragraph (1) of subdivision (a) of Section
33421 shall serve, as follows:

(1) Members and alternates in the Counties of Madera, Merced,
Stanislaus, and San Joaquin shall have terms beginning on January
1 in an odd-numbered year and ending on December 31 of the
following even-numbered year. All terms shall be for two years.

(2) Members and alternates in the Counties of Fresno, Kings,
Tulare, and Kern shall have terms beginning on January 1 in an
even-numbered year and ending on December 31 in the following
odd-numbered year. Members and alternates who are initially
appointed to the board shall serve for a one-year term for the first
year. Subsequent terms shall be for two years.

(c) No member of the board, whose appointment to the board
was contingent upon meeting a condition of eligibility under this
division, shall serve beyond the time when the member ceases to
meet that condition.

begin insert 33423. end insert   

(a) The voting members appointed or designated under
paragraph (1) of subdivision (a) of Section 33421 who are not
state employees shall be compensated for attending meetings of
the conservancy at the rate of one hundred dollars ($100) per
scheduled meeting day.

(b) All members of the board shall be reimbursed for their actual
and necessary expenses, including travel expenses, incurred in
attending meetings of the conservancy and carrying out the duties
of their office.

begin insert 33424. end insert   

Annually, the voting members of the board shall elect
from among the voting members a chairperson and
vice-chairperson, and other officers as necessary. If the office of
the chairperson or vice-chairperson becomes vacant, a new
chairperson or vice-chairperson shall be elected by the voting
members of the board to serve for the remainder of the term.

begin insert 33425. end insert   

(a) Eight members of the voting members shall
constitute a quorum for the transaction of the business of the
conservancy. The board shall not transact the business of the
conservancy if a quorum is not present at the time a vote is taken.
A decision of the board requires an affirmative vote of seven of
the voting members, and the vote is binding with respect to all
matters acted on by the conservancy.

(b) The board shall adopt rules, regulations, and procedures
for the conduct of business by the conservancy.

(c) The voting members of the board appointed or designated
pursuant to paragraph (1) of subdivision (a) of Section 33421 and
the nonvoting advisers selected pursuant to paragraph (2) of
subdivision (a) of Section 33421, shall have the right to attend all
meetings of the board, including closed sessions.

begin insert 33426. end insert   

The board may establish advisory boards or committees,
hold community meetings, and engage in public outreach using
advanced forms of technology, in order to facilitate the
decisionmaking process. Members of advisory boards or
committees may be reimbursed for the actual and necessary
expenses, including travel expenses, that they incur in attending
regular meetings of the advisory board or committee of which they
are a member.

begin insert 33427. end insert   

The board shall establish and maintain a headquarters
office within the region. Except as provided in Section 33447, the
conservancy may rent or own real and personal property and
equipment pursuant to applicable statutes and regulations.

begin insert 33428. end insert   

The board shall determine the qualifications of, and
shall appoint, an executive officer of the conservancy, who shall
be exempt from civil service. The board shall employ other staff
as necessary to execute the powers and functions provided for
under this division.

begin insert 33429. end insert   

The board may enter into contracts with private entities
and public agencies to procure consulting and other services
necessary to achieve the purposes of this division.

begin insert 33430. end insert   

The conservancy’s expenses for support and
administration may be paid from the conservancy’s operating
budget and any other funding sources available to the conservancy.

begin insert 33431. end insert   

The board shall conduct business in accordance 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).

begin insert 33432. end insert   

The board shall hold its regular meetings within the
San Joaquin Valley.

begin insert 33433. end insert   

On and after January 1, 2015, the board shall post
agendas for each board meeting on the Internet.

 

Chapter   begin insert 3. end insert Powers, Duties, and Limitations

 

begin insert 33440. end insert   

The conservancy’s jurisdiction is limited to the San
Joaquin Valley.

begin insert 33441. end insert   

The conservancy shall carry out projects and activities
to further the purposes of this division throughout the region. The
board shall make every effort to ensure that, over time, conservancy
funding and other efforts are spread equitably across each of the
counties and among the stated goal areas, with adequate allowance
for the variability of costs associated with individual counties and
types of projects.

begin insert 33442. end insert   

In carrying out this division, the conservancy shall
cooperate with and consult with the city or county where a grant
is proposed or an interest in real property is proposed to be
acquired; and shall, as necessary or appropriate, coordinate its
efforts with other state agencies, in cooperation with the Secretary
of the Resources Agency. The conservancy shall, as necessary and
appropriate, cooperate and consult with a public water system
that owns or operates facilities, including lands appurtenant
thereto, where a grant is proposed or an interest in land is
proposed to be acquired.

begin insert 33443. end insert   

(a) The conservancy may make grants or loans to
public agencies, nonprofit organizations, and tribal organizations
in order to carry out the purposes of this division, including grants
or loans provided to acquire an interest in real property, including
a fee interest in that property. Grant or loan funds shall be
disbursed to a recipient entity only after the entity has entered into
an agreement with the conservancy, on the terms and conditions
specified by the conservancy. After approving a grant, the
conservancy may assist the grantee in carrying out the purposes
of the grant.

(b) When awarding grants or making loans pursuant to this
division, the conservancy may require repayment of those funds
on the terms and conditions it deems appropriate. Proceeds from
the repayment or reimbursement of amounts granted or loaned by
the conservancy shall be deposited in the fund.

(c) An entity applying for a grant from the conservancy to
acquire an interest in real property shall specify all of the following
in the grant application:

(1) The intended use of the property.

(2) The manner in which the land will be managed.

(3) How the cost of ongoing management will be funded.

(d) Funds expended for the purposes of subdivision (i) of Section
33420 shall be used to provide low-interest loans to help finance
those projects. The conservancy may require repayment of those
funds on the terms and conditions it deems appropriate. Proceeds
from the repayment of amounts loaned by the conservancy shall
be deposited into the fund.

begin insert 33444. end insert   

In the case of a grant of funds to a nonprofit
organization or tribal organization to acquire an interest in real
property, including, but not limited to, a fee interest, the agreement
between the conservancy and the recipient nonprofit organization
shall require all of the following:

(a) The purchase price of an interest in real property acquired
by the nonprofit organization shall not exceed fair market value
as established by an appraisal approved by the conservancy.

(b) The terms under which the interest in real property is
acquired shall be subject to the conservancy’s approval.

(c) An interest in real property to be acquired under the grant
shall not be used as security for a debt unless the conservancy
approves the transaction.

(d) The transfer of an interest in the real property shall be
subject to approval of the conservancy, and a new agreement
sufficient to protect the public interest shall be entered into between
the conservancy and the transferee.

(e) A deed or instrument by which the nonprofit organization
acquires an interest in real property under the grant shall include
a power of termination on the part of the state, subject to the
requirements of Chapter 5 (commencing with Section 885.010) of
Title 5 of Part 2 of Division 2 of the Civil Code. The deed or
instrument shall provide that the state may exercise the power of
termination by notice in the event of the nonprofit organization’s
violation of the purpose of the grant through breach of a material
term or condition thereof, and that, upon recordation of the notice,
full title to the interest in real property identified in the notice shall
immediately vest in the state, or in another public agency or a
nonprofit organization designated by the conservancy to which
the state conveys or has conveyed its interest.

(f) A deed or instrument by which the nonprofit organization
acquires an interest in real property under the grant shall provide
that the conveyance is subject to a remainder interest vested in
the state. If the existence of the nonprofit organization is terminated
for any reason, the conservancy may require that the remainder
shall become a present interest and that full title to the real
property shall vest in the state, or in another public agency or a
nonprofit organization designated by the conservancy to which
the state conveys or has conveyed its interest.

begin insert 33445. end insert   

The conservancy shall adopt guidelines setting priorities
and criteria for projects and programs, based upon its assessment
of program requirements, institutional capabilities, and funding
needs throughout the region, and federal, state, and local plans,
including general plans, recreation plans, urban water
management plans, and groundwater management plans. As part
of the process of developing guidelines for projects and programs,
the conservancy shall undertake and facilitate a strategic program
planning process involving meetings and workshops within each
of the subregions, with the purpose of formulating strategic
program objectives and priorities within that subregion. The
strategic program shall be updated regularly, at least once every
five years.

begin insert 33445.5. end insert   

In granting funds pursuant to this division, the board
shall give priority to proposals that include matching funds from
local sources.

begin insert 33446. end insert   

(a) The conservancy may expend funds and award
grants and loans to facilitate collaborative planning efforts and
to develop projects and programs that are designed to further the
purposes of this division.

(b) The conservancy may provide and make available technical
information, expertise, and other nonfinancial assistance to public
agencies, nonprofit organizations, and tribal organizations, to
support program and project development and implementation.

(c) The recipient of a grant or loan provided by the conservancy
pursuant to this division for the acquisition of real property shall
provide for the management of the real property to be acquired
as specified in the grant agreement.

begin insert 33446.5. end insert   

The conservancy may apply for and receive grants
to carry out the purposes of this division.

begin insert 33447. end insert   

(a) The conservancy may acquire an interest in any
real property in order to carry out the purposes of this division.
However, the conservancy shall not acquire a fee interest in real
property by purchase.

(b) The acquisition of an interest in real property under this
section is not subject to the Property Acquisition Law (Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code), unless the value of the interest exceeds two
hundred fifty thousand dollars ($250,000) per lot or parcel, as
adjusted for annual changes to the Consumer Price Index for the
State of California, as calculated by the Department of Finance.
However, the conservancy may request the State Public Works
Board to review and approve specific acquisitions.

(c) The conservancy shall not exercise the power of eminent
domain.

begin insert 33448. end insert   

Notwithstanding Section 11005.2 of the Government
Code or any other provision of law, the conservancy may lease,
rent, sell, exchange, or otherwise transfer, an interest, option, or
contractual right in real property, as well as a vested right
severable therefrom, that has been acquired under this division,
to a person or entity, subject to terms and conditions in furtherance
of the conservancy’s purposes.

begin insert 33449. end insert   

(a) The conservancy shall take whatever actions are
reasonably necessary and incidental to the management of lands
or interests in lands under its ownership or control, and may
initiate, negotiate, and participate in agreements for the
management of those lands or interests with public agencies or
private individuals or entities.

(b) The conservancy may improve, restore, or enhance lands
for the purpose of protecting the natural environment, improving
public enjoyment of or public access to public lands, enhance the
availability of groundwater for beneficial and sustainable use, or
to otherwise meet the objectives of this division, and may carry
out the planning and design of those improvements or other
measures.

(c) The conservancy may enter into an agreement with a public
agency, nonprofit organization, or private entity, for the
construction, management, or maintenance of facilities authorized
by the conservancy.

begin insert 33450. end insert   

(a) Notwithstanding Section 10231.5 of the Government
Code, the conservancy shall make an annual report to the
Legislature and to the Secretary of the Resources Agency regarding
expenditures, land management costs, and administrative costs.

(b) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

begin insert 33451. end insert   

The conservancy may expend funds under this division
to conduct research and monitoring in connection with
development and implementation of the program administered
under this division.

begin insert 33452. end insert   

(a) The conservancy may receive gifts, donations,
bequests, devises, subventions, grants, rents, royalties, and other
assistance and funds from public and private sources.

(b) Except as provided in Section 33447, the conservancy may
receive an interest in real or personal property through transfer,
succession, or other mode of acquisition generally recognized by
law.

(c) All funds or income received by the conservancy shall be
deposited in the fund for expenditure for the purposes of this
division.

begin insert 33453. end insert   

The conservancy may fix and collect a fee for a direct
service it renders, if the service is rendered at the request of the
individual or entity receiving the service. The amount of a fee shall
not exceed the conservancy’s reasonable costs and expenses of
providing the service rendered. All fees received by the
conservancy shall be deposited in the fund for expenditure for the
purposes of this division.

begin insert 33454. end insert   

Proceeds from a lease, rental, sale, exchange, or
transfer of an interest or option in real property, and all other
income, shall be deposited in the fund for expenditure for the
purposes of this division.

begin insert 33455. end insert   

The San Joaquin Valley Groundwater Conservancy
Fund is hereby created in the State Treasury. Moneys in the fund
shall be available, upon appropriation by the Legislature, only
for the purposes of this division.

begin insert 33456. end insert   

Nothing in this division grants to the conservancy:

(a) Any of the powers of a city or county to regulate land use.

(b) Any powers to regulate any activities on land, except as the
owner of an interest in the land, or pursuant to an agreement with,
or a license or grant of management authority from, the owner of
an interest in the land.

(c) Any powers over water rights held by others.

end insert

begin delete

SECTION 1.  

Section 399.30 of the Public Utilities Code is
amended to read:

399.30.  

(a) To fulfill unmet long-term generation resource
needs, each local publicly owned electric utility shall adopt and
implement a renewable energy resources procurement plan that
requires the utility to procure a minimum quantity of electricity
products from eligible renewable energy resources, including
renewable energy credits, as a specified percentage of total
kilowatthours sold to the utility’s retail end-use customers, each
compliance period, to achieve the targets of subdivision (c).

(b) The governing board shall implement procurement targets
for a local publicly owned electric utility that require the utility to
procure a minimum quantity of eligible renewable energy resources
for each of the following compliance periods:

(1) January 1, 2011, to December 31, 2013, inclusive.

(2) January 1, 2014, to December 31, 2016, inclusive.

(3) January 1, 2017, to December 31, 2020, inclusive.

(c) The governing board of a local publicly owned electric utility
shall ensure all of the following:

(1) The quantities of eligible renewable energy resources to be
procured for the compliance period from January 1, 2011, to
December 31, 2013, inclusive, are equal to an average of 20 percent
of retail sales.

(2) The quantities of eligible renewable energy resources to be
procured for all other compliance periods reflect reasonable
progress in each of the intervening years sufficient to ensure that
the procurement of electricity products from eligible renewable
energy resources achieves 25 percent of retail sales by December
31, 2016, and 33 percent of retail sales by December 31, 2020.
The local governing board shall require the local publicly owned
electric utilities to procure not less than 33 percent of retail sales
of electricity products from eligible renewable energy resources
in all subsequent years.

(3) A local publicly owned electric utility shall adopt
procurement requirements consistent with Section 399.16.

(d) The governing board of a local publicly owned electric utility
may adopt the following measures:

(1) Rules permitting the utility to apply excess procurement in
one compliance period to subsequent compliance periods in the
same manner as allowed for retail sellers pursuant to Section
399.13.

(2) Conditions that allow for delaying timely compliance
consistent with subdivision (b) of Section 399.15.

(3) Cost limitations for procurement expenditures consistent
with subdivision (c) of Section 399.15.

(e) The governing board of the local publicly owned electric
utility shall adopt a program for the enforcement of this article on
or before January 1, 2012. The program shall be adopted at a
publicly noticed meeting offering all interested parties an
opportunity to comment. Not less than 30 days’ notice shall be
given to the public of any meeting held for purposes of adopting
the program. Not less than 10 days’ notice shall be given to the
public before any meeting is held to make a substantive change to
the program.

(f) (1) Each local publicly owned electric utility shall annually
post notice, in accordance with Chapter 9 (commencing with
Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code, whenever its governing body will deliberate in public on its
renewable energy resources procurement plan.

(2) Contemporaneous with the posting of the notice of a public
meeting to consider the renewable energy resources procurement
plan, the local publicly owned electric utility shall notify the
Energy Commission of the date, time, and location of the meeting
in order to enable the Energy Commission to post the information
on its Internet Web site. This requirement is satisfied if the local
publicly owned electric utility provides the uniform resource
locator (URL) that links to this information.

(3) Upon distribution to its governing body of information
related to its renewable energy resources procurement status and
future plans, for its consideration at a noticed public meeting, the
local publicly owned electric utility shall make that information
available to the public and shall provide the Energy Commission
with an electronic copy of the documents for posting on the Energy
Commission’s Internet Web site. This requirement is satisfied if
the local publicly owned electric utility provides the uniform
resource locator (URL) that links to the documents or information
regarding other manners of access to the documents.

(g) A public utility district that receives all of its electricity
pursuant to a preference right adopted and authorized by the United
States Congress pursuant to Section 4 of the Trinity River Division
Act of August 12, 1955 (Public Law 84-386) shall be in compliance
with the renewable energy procurement requirements of this article.

(h) For a local publicly owned electric utility that was in
existence on or before January 1, 2009, that provides retail electric
service to 15,000 or fewer customer accounts in California, and is
interconnected to a balancing authority located outside this state
but within the WECC, an eligible renewable energy resource
includes a facility that is located outside California that is
connected to the WECC transmission system, if all of the following
conditions are met:

(1) The electricity generated by the facility is procured by the
local publicly owned electric utility, is delivered to the balancing
authority area in which the local publicly owned electric utility is
located, and is not used to fulfill renewable energy procurement
requirements of other states.

(2) The local publicly owned electric utility participates in, and
complies with, the accounting system administered by the Energy
Commission pursuant to this article.

(3) The Energy Commission verifies that the electricity
generated by the facility is eligible to meet the renewables portfolio
standard procurement requirements.

(i) Notwithstanding subdivision (a), for a local publicly owned
electric utility that is a joint powers authority of districts established
pursuant to state law on or before January 1, 2005, that furnish
electric services other than to residential customers, and is formed
pursuant to the Irrigation District Law (Division 11 (commencing
with Section 20500) of the Water Code), the percentage of total
kilowatthours sold to the district’s retail end-use customers, upon
which the renewables portfolio standard procurement requirements
in subdivision (b) are calculated, shall be based on the authority’s
average retail sales over the previous seven years. If the authority
has not furnished electric service for seven years, then the
calculation shall be based on average retail sales over the number
of completed years during which the authority has provided electric
service.

(j) A local publicly owned electric utility in a city and county
that only receives greater than 67 percent of its electricity sources
from hydroelectric generation located within the state that it owns
and operates, and that does not meet the definition of a “renewable
electrical generation facility” pursuant to Section 25741 of the
Public Resources Code, shall be required to procure eligible
renewable energy resources, including renewable energy credits,
to meet only the electricity demands unsatisfied by its hydroelectric
generation in any given year, in order to satisfy its renewable
energy procurement requirements.

(k) (1) A local publicly owned electric utility that receives
greater than 50 percent of its annual retail sales from its own
hydroelectric generation that is not an eligible renewable energy
resource shall not be required to procure additional eligible
renewable energy resources in excess of either of the following:

(A) The portion of its retail sales not supplied by its own
hydroelectric generation. For these purposes, retail sales supplied
by increased hydroelectric generation resulting from an increase
in the amount of water stored by a dam because the dam is enlarged
or otherwise modified after December 31, 2012, shall not count
as being retail sales supplied by the utility’s own hydroelectric
generation.

(B) The cost limitation adopted pursuant to this section.

(2) For the purposes of this subdivision, “hydroelectric
generation” means electricity generated from a hydroelectric
facility satisfying all of the following:

(A) Is owned solely and operated by the local publicly owned
electric utility as of 1967.

(B) Serves a local publicly owned electric utility with a
distribution system demand of less than 150 megawatts.

(C) Involves a contract in which an electrical corporation
receives the benefit of the electric generation through June of 2014,
at which time the benefit reverts back to the ownership and control
of the local publicly owned electric utility.

(D) Has a maximum penstock flow capacity of no more than
3,200 cubic feet per second and includes a regulating reservoir
with a small hydroelectric generation facility producing fewer than
20 megawatts with a maximum penstock flow capacity of no more
than 3,000 cubic feet per second.

(3) This subdivision does not reduce or eliminate any renewable
procurement requirement for any compliance period ending prior
to January 1, 2014.

(4) This subdivision does not require a local publicly owned
electric utility to purchase additional renewable energy resources
in excess of the renewable procurement requirements set forth in
subdivision (c).

(l) A local publicly owned electric utility shall retain discretion
over both of the following:

(1) The mix of eligible renewable energy resources procured
by the utility and those additional generation resources procured
by the utility for purposes of ensuring resource adequacy and
reliability.

(2) The reasonable costs incurred by the utility for eligible
renewable energy resources owned by the utility.

(m) On or before July 1, 2011, the Energy Commission shall
adopt regulations specifying procedures for enforcement of this
article. The regulations shall include a public process under which
the Energy Commission may issue a notice of violation and
correction against a local publicly owned electric utility for failure
to comply with this article, and for referral of violations to the
State Air Resources Board for penalties pursuant to subdivision
(o).

(n) (1) Upon a determination by the Energy Commission that
a local publicly owned electric utility has failed to comply with
this article, the Energy Commission shall refer the failure to comply
with this article to the State Air Resources Board, which may
impose penalties to enforce this article consistent with Part 6
(commencing with Section 38580) of Division 25.5 of the Health
and Safety Code. Any penalties imposed shall be comparable to
those adopted by the commission for noncompliance by retail
sellers.

(2) If Division 25.5 (commencing with Section 38500) of the
Health and Safety Code is suspended or repealed, the State Air
Resources Board may take action to enforce this article on local
publicly owned electric utilities consistent with Section 41513 of
the Health and Safety Code, and impose penalties on a local
publicly owned electric utility consistent with Article 3
(commencing with Section 42400) of Chapter 4 of Part 4 of, and
Chapter 1.5 (commencing with Section 43025) of Part 5 of,
Division 26 of the Health and Safety Code.

(3) For the purpose of this subdivision, this section is an
emissions reduction measure pursuant to Section 38580 of the
Health and Safety Code.

(4) If the State Air Resources Board has imposed a penalty upon
a local publicly owned electric utility for the utility’s failure to
comply with this article, the State Air Resources Board shall not
impose an additional penalty for the same infraction, or the same
failure to comply, with any renewables procurement requirement
imposed upon the utility pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500) of the Health and Safety Code).

(5) Any penalties collected by the State Air Resources Board
pursuant to this article shall be deposited in the Air Pollution
Control Fund and, upon appropriation by the Legislature, shall be
expended for reducing emissions of air pollution or greenhouse
gases within the same geographic area as the local publicly owned
electric utility.

(o) The commission has no authority or jurisdiction to enforce
any of the requirements of this article on a local publicly owned
electric utility.

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