BILL NUMBER: AB 1478	CHAPTERED
	BILL TEXT

	CHAPTER  664
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2014
	PASSED THE SENATE  AUGUST 30, 2014
	PASSED THE ASSEMBLY  AUGUST 30, 2014
	AMENDED IN SENATE  AUGUST 29, 2014
	AMENDED IN SENATE  AUGUST 22, 2014
	AMENDED IN SENATE  AUGUST 11, 2014

INTRODUCED BY   Committee on Budget (Skinner (Chair), Bloom, Campos,
Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin,
Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

                        JANUARY 9, 2014

   An act to amend, repeal, and add Section 5956.10 of the Government
Code, to amend Section 50661 of the Health and Safety Code, to amend
Sections 25416 and 31111.5 of, and to add Section 5080.43 to, the
Public Resources Code, to amend Sections 379.6 and 399.12 of the
Public Utilities Code, and to amend Sections 62 and 193 of Chapter 35
of the Statutes of 2014, relating to public resources, and making an
appropriation therefor, to take effect immediately, bill related to
the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1478, Committee on Budget. Public resources.
   (1) Existing law authorizes a governmental agency to solicit
proposals and enter into agreements with private entities for the
design, construction, or reconstruction of, and to lease to private
entities, specified types of fee-producing infrastructure projects.
Existing law prohibits a state agency or specified governmental
agencies from using this authorization to design, construct, finance,
or operate a state project, as specified.
   This bill, until December 31, 2019, would specify that a state
project, for these purposes, does not include a governmental agency
project financed through the State Water Pollution Control Revolving
Fund or the Safe Drinking Water State Revolving Fund.
   (2) Existing law creates the Housing Rehabilitation Loan Fund and
continuously appropriates moneys in the fund for, among other
purposes, making specified deferred payment housing rehabilitation
loans. Prior to June 20, 2014, existing law authorized, to the extent
no other funding sources were available, $10,000,000 in the fund to
be used by the department for the purpose of providing housing
rental-related subsidies to persons rendered homeless, or at risk of
becoming homeless, due to unemployment, underemployment, or other
economic hardship resulting from the state of emergency proclaimed by
the Governor based on drought conditions.
   This bill would, to the extent no other funding sources are
available, reauthorize that $10,000,000 in the fund to be used by the
department for the above-stated purposes.
   (3) Existing law vests with the Department of Parks and Recreation
control of the state park system. Existing law authorizes the
department to enter into an agreement with specified nonprofit
organizations for the development, improvement, restoration, care,
maintenance, administration, or operation of a unit, or portion of a
unit, of the state park system, subject to certain conditions.
   This bill would authorize the department to enter into a
restoration agreement with the Leland Stanford Mansion Foundation, a
nonprofit organization, for the purpose of restoring the front
staircase at the Leland Stanford Mansion State Historical Park, as
specified.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the Leland Stanford Mansion
State Historical Park.
   (4) The Energy Conservation Assistance Act of 1979 establishes the
State Energy Conservation Assistance Account, a continuously
appropriated account, that is administered by the State Energy
Resources Conservation and Development Commission to provide grants
and loans to various public entities to maximize energy use savings
in existing and planned buildings and facilities. Existing law, the
Budget Act of 2014, transfers, upon order of the Director of Finance,
moneys from the Greenhouse Gas Reduction Fund to the account for
those purposes.
   This bill would create a continuously appropriated subaccount
within the State Energy Conservation Assistance Account to track the
award and repayment of loans made with moneys transferred from the
Greenhouse Gas Reduction Fund, as specified. The bill would authorize
moneys in the subaccount to be used for loans only for projects in
buildings owned and operated by a state agency or entity, including,
without limitation, the University of California and California State
University.
   (5) Existing law establishes the State Coastal Conservancy in the
Natural Resources Agency with prescribed powers and responsibilities
for implementing a program of agricultural land protection, area
restoration, and resources enhancement within the coastal zone, as
defined. Existing law authorizes the conservancy, for the purpose of
implementing the provisions governing the conservancy, to award a
grant to a for-profit entity to accomplish the removal or alteration
of the San Clemente Dam under specified conditions. Existing law
limits the total expenditures of state moneys for the removal or
alteration of the San Clemente Dam and related activities to not more
than $25,000,000.
   This bill would increase the limit on the total expenditure of
state moneys for the removal or alteration of the San Clemente Dam
and related activities to not more than $30,000,000.
   (6) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the Public Utilities
Commission to require the administration, until January 1, 2021, of a
self-generation incentive program for distributed generation
resources. Existing law limits eligibility for incentives under the
self-generation incentive program to distributed energy resources
that the Public Utilities Commission, in consultation with the State
Air Resources Board, determines will achieve reductions in emissions
of greenhouse gases pursuant to the California Global Warming
Solutions Act of 2006.
   This bill would modify the eligibility requirements for incentives
under the self-generation incentive program, as specified. The bill
also would modify the performance measures used in the Public
Utilities Commission's evaluation of the overall success and impact
of the self-generation incentive program, as specified.
   (7) Existing law establishes the California Renewables Portfolio
Standard Program, which requires the Public Utilities Commission to
implement annual procurement targets for the procurement of eligible
renewable energy resources for all retail sellers, as defined, to
achieve the targets and goals of the program. Existing law defines an
eligible renewable energy resource to include, among other things, a
small hydroelectric generation unit with a nameplate capacity not
exceeding 40 megawatts that meets certain qualifications.
   This bill would revise the qualifications for a small
hydroelectric generation unit with a nameplate capacity not exceeding
40 megawatts to be an eligible renewable energy resource, as
specified.
   (8) Existing law, the Budget Act of 2014, appropriates the
unencumbered balance of specified moneys appropriated in the Budget
Act of 2003 for the State Department of Public Health to the State
Water Resources Control Board for encumbrance or expenditure until
June 30, 2016, for the purposes of providing grants of up to $500,000
per project for public water systems to address drought-related
drinking water emergencies or threatened emergencies.
   This bill would make those moneys available for liquidation until
June 30, 2018.
   This bill also would make conforming changes.
   (9) The California Global Warming Solutions Act of 2006 designates
the State Air Resources Board as the state agency responsible for
monitoring and regulating sources emitting greenhouse gases. The act
requires the state board to adopt a statewide greenhouse gas
emissions limit to be achieved by 2020 equivalent to the statewide
greenhouse gas emissions levels in 1990. Existing law authorizes the
state board to adopt a schedule of fees to be paid by the sources of
greenhouse gas emissions regulated pursuant to the act and requires
those fees to be deposited in the Cost of Implementation Account. The
act requires the state board to prepare and approve a scoping plan
for achieving the maximum technologically feasible and cost-effective
reductions in greenhouse gas emissions. The act requires the scoping
plan to be updated at least once every 5 years.
   This bill would appropriate $529,000 from the Cost of
Implementation Account to the Secretary of the Natural Resources
Agency for the purpose of implementing elements of the scoping plan
adopted by the State Air Resources Board.
   (10) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


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

  SECTION 1.  Section 5956.10 of the Government Code is amended to
read:
   5956.10.  (a)  Notwithstanding any other provision of this
chapter, neither the state or any state agency shall directly or
indirectly use the authority in this chapter nor shall any
governmental agency, as defined in Section 5956.3, use the authority
in this chapter to design, construct, finance, or operate a state
project. For purposes of this section, a state project includes any
of the following:
   (1) Tollroads on state highways.
   (2) State water projects.
   (3) State park and recreation projects.
   (4) State financed projects.
   (b)  These limitations shall not prohibit the state, any state
agency, or any governmental agency, as defined in Section 5956.3,
from utilizing authorizations contained in other provisions of law.
   (c) For purposes of this section, a state project does not include
a governmental agency project financed through the State Water
Pollution Control Revolving Fund, established pursuant to Section
13477 of the Water Code, or the Safe Drinking Water State Revolving
Fund, established pursuant to Section 116760.30 of the Health and
Safety Code.
   (d) This section shall become inoperative on December 31, 2019,
and, as of January 1, 2020, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2020, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 2.  Section 5956.10 is added to the Government Code, to read:
   5956.10.  (a) Notwithstanding any other provision of this chapter,
neither the state or any state agency shall directly or indirectly
use the authority in this chapter nor shall any governmental agency,
as defined in Section 5956.3, use the authority in this chapter to
design, construct, finance, or operate a state project. For purposes
of this section, a state project includes any of the following:
   (1) Tollroads on state highways.
   (2) State water projects.
   (3) State park and recreation projects.
   (4) State financed projects.
   (b) These limitations shall not prohibit the state, any state
agency, or any governmental agency, as defined in Section 5956.3,
from utilizing authorizations contained in other provisions of law.
   (c) This section shall become operative on January 1, 2020.
  SEC. 3.  Section 50661 of the Health and Safety Code is amended to
read:
   50661.  (a) There is hereby created in the State Treasury the
Housing Rehabilitation Loan Fund. All interest or other increments
resulting from the investment of moneys in the Housing Rehabilitation
Loan Fund shall be deposited in the fund, notwithstanding Section
16305.7 of the Government Code. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
to the department for the following purposes:
   (1) For making deferred-payment rehabilitation loans for financing
all or a portion of the cost of rehabilitating existing housing to
meet rehabilitation standards as provided in this chapter.
   (2) For making deferred payment loans as provided in Sections
50668.5, 50669, and 50670.
   (3) For making deferred payment loans pursuant to Sections 50662.5
and 50671.
   (4) Subject to the restrictions of Section 53131, if applicable,
for administrative expenses of the department made pursuant to this
chapter, Article 3 (commencing with Section 50693) of Chapter 7.5,
and Chapter 10 (commencing with Section 50775).
   (5) For related administrative costs of nonprofit corporations and
local public entities contracting with the department pursuant to
Section 50663 in an amount, if any, as determined by the department,
to enable the entities and corporations to implement a program
pursuant to this chapter. The department shall ensure that not less
than 20 percent of the funds loaned pursuant to this chapter shall be
allocated to rural areas. For purposes of this chapter, "rural area"
shall have the same meaning as in Section 50199.21.
   (6) To the extent no other funding sources are available, ten
million dollars ($10,000,000), as provided in Section 4 of Chapter 3
of the Statutes of 2014, may be used for the purposes of Section
34085.
   (b) There shall be paid into the fund the following:
   (1) Any moneys appropriated and made available by the Legislature
for purposes of the fund.
   (2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest thereon.
   (3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
   (4) Moneys transferred or deposited to the fund pursuant to
Sections 50661.5 and 50778.
   (c) Notwithstanding any other law, any interest or other increment
earned by the investment or deposit of moneys appropriated by
subdivision (b) of Section 3 of Chapter 2 of the Statutes of the
1987-88 First Extraordinary Session, or Section 7 of Chapter 4 of the
Statutes of the 1987-88 First Extraordinary Session, shall be
deposited in a special account in the Housing Rehabilitation Loan
Fund and shall be used exclusively for purposes of Sections 50662.5
and 50671.
   (d) Notwithstanding any other law, effective with the date of the
act adding this subdivision, appropriations authorized by the Budget
Act of 1996 for support of the Department of Housing and Community
Development from the California Disaster Housing Repair Fund and the
California Homeownership Assistance Fund shall instead be authorized
for expenditure from the Housing Rehabilitation Loan Fund.
   (e) Effective July 1, 2014, the California Housing Trust Fund in
the State Treasury is abolished and any remaining balance, assets,
liabilities, and encumbrances shall be transferred to, and become
part of, the Housing Rehabilitation Loan Fund. Notwithstanding
Section 13340 of the Government Code, all transferred amounts are
continuously appropriated to the department for the purpose of
satisfying any liabilities and encumbrances and the purposes
specified in this section.
  SEC. 4.  Section 5080.43 is added to the Public Resources Code, to
read:
   5080.43.  (a) Notwithstanding any other provision of this article
or Article 3 (commencing with Section 5080.50), the department may
enter into a restoration agreement with the Leland Stanford Mansion
Foundation, a nonprofit organization, for the purpose of restoring
the front staircase at the Leland Stanford Mansion State Historical
Park. The agreement shall include, but shall not be limited to, all
of the following:
   (1) A requirement that the restoration shall follow the United
States Secretary of the Interior's Standards for the Treatment of
Historic Properties guidelines and the guidelines set forth by the
American Institute for Conservation of Historic and Artistic Works.
   (2) A requirement that the restoration also shall comply with any
applicable code of ethics or guidelines for practice governing the
rehabilitation and preservation of historical sites and buildings.
All plans for the work, the work in process, and the finished work
shall be audited by the department.
   (3) All costs of the restoration of the front staircase at the
Leland Stanford Mansion State Historical Park shall be incurred under
the authority of, and be the responsibility of, the Leland Stanford
Mansion Foundation.
   (b) Nothing in this section shall preclude the Leland Stanford
Mansion Foundation from contracting for work performed by an
individual or entity on a paid or for-profit basis.
  SEC. 5.  Section 25416 of the Public Resources Code is amended to
read:
   25416.  (a) The State Energy Conservation Assistance Account is
hereby created in the General Fund. Notwithstanding Section 13340 of
the Government Code, the account is continuously appropriated to the
commission without regard to fiscal year.
   (b) The money in the account shall consist of all moneys
authorized or required to be deposited in the account by the
Legislature and all moneys received by the commission pursuant to
Sections 25414 and 25415.
   (c) The moneys in the account shall be disbursed by the Controller
for the purposes of this chapter as authorized by the commission.
   (d) The commission may contract and provide grants for services to
be performed for eligible institutions. Services may include, but
are not limited to, feasibility analysis, project design, field
assistance, and operation and training. The amount expended for those
services shall not exceed 10 percent of the unencumbered balance of
the account as determined by the commission on July 1 of each year.
   (e) The commission may make grants to eligible institutions for
innovative projects and programs. Except as provided in subdivision
(d), the amount expended for grants shall not exceed 5 percent of the
annual unencumbered balance in the account as determined by the
commission on July 1 of each fiscal year.
   (f) The commission may charge a fee for the services provided
under subdivision (d).
   (g) Notwithstanding any other law, the Controller may use the
State Energy Conservation Assistance Account for loans to the General
Fund as provided in Sections 16310 and 16381 of the Government Code.

   (h) (1) A subaccount is hereby created within the State Energy
Conservation Assistance Account to track the award and repayment of
loans, including principal, interest, and interest earnings on or
accruing to the subaccount, made with moneys transferred to the
account from the Greenhouse Gas Reduction Fund, created pursuant to
Section 16428.8 of the Government Code. Notwithstanding Section 13340
of the Government Code, the subaccount is hereby continuously
appropriated to the commission without regard to fiscal year.
   (2) Moneys deposited in the subaccount may be used for loans only
for projects in buildings owned and operated by a state agency or
entity, including, without limitation, the University of California
and California State University.
   (3) Notwithstanding Section 39718 of the Health and Safety Code, a
repayment of a loan made pursuant to this chapter with moneys
transferred from the Greenhouse Gas Reduction Fund shall be deposited
in the subaccount and shall be available for a loan made to an
entity eligible for these moneys pursuant to this subdivision.
  SEC. 6.  Section 31111.5 of the Public Resources Code is amended to
read:
   31111.5.  (a) In implementing this division, the conservancy may
award a grant to a for-profit entity to accomplish the removal or
alteration of the San Clemente Dam if the conservancy finds that the
project is of regional or statewide significance and that a grant to
a public agency or nonprofit organization would not achieve removal
or alteration of the San Clemente Dam.
   (b) Notwithstanding subdivision (a), total expenditures of state
moneys for the removal or alteration of the San Clemente Dam and
related activities shall not exceed thirty million dollars
($30,000,000).
  SEC. 7.  Section 379.6 of the Public Utilities Code is amended to
read:
   379.6.  (a) (1)  It is the intent of the Legislature that the
self-generation incentive program increase deployment of distributed
generation and energy storage systems to facilitate the integration
of those resources into the electrical grid, improve efficiency and
reliability of the distribution and transmission system, and reduce
emissions of greenhouse gases, peak demand, and ratepayer costs. It
is the further intent of the Legislature that the commission, in
future proceedings, provide for an equitable distribution of the
costs and benefits of the program.
   (2)  The commission, in consultation with the Energy Commission,
may authorize the annual collection of not more than the amount
authorized for the self-generation incentive program in the 2008
calendar year, through December 31, 2019. The commission shall
require the administration of the program for distributed energy
resources originally established pursuant to Chapter 329 of the
Statutes of 2000 until January 1, 2021. On January 1, 2021, the
commission shall provide repayment of all unallocated funds collected
pursuant to this section to reduce ratepayer costs.
   (3) The commission shall administer solar technologies separately,
pursuant to the California Solar Initiative adopted by the
commission in Decisions 05-12-044 and 06-01-024, as modified by
Article 1 (commencing with Section 2851) of Chapter 9 of Part 2 of
Division 1 of this code and Chapter 8.8 (commencing with Section
25780) of Division 15 of the Public Resources Code.
   (b) (1) Eligibility for incentives under the self-generation
incentive program shall be limited to distributed energy resources
that the commission, in consultation with the State Air Resources
Board, determines will achieve reductions in emissions of greenhouse
gases pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code).
   (2) On or before July 1, 2015, the commission shall update the
factor for avoided greenhouse gas emissions based on the most recent
data available to the State Air Resources Board for greenhouse gas
emissions from electricity sales in the self-generation incentive
program administrators' service areas as well as current estimates of
greenhouse gas emissions over the useful life of the distributed
energy resource, including consideration of the effects of the
California Renewables Portfolio Standard.
   (c) Eligibility for the funding of any combustion-operated
distributed generation projects using fossil fuel is subject to all
of the following conditions:
   (1)  An oxides of nitrogen (NOx) emissions rate standard of 0.07
pounds per megawatthour and a minimum efficiency of 60 percent, or
any other NOx emissions rate and minimum efficiency standard adopted
by the State Air Resources Board. A minimum efficiency of 60 percent
shall be measured as useful energy output divided by fuel input. The
efficiency determination shall be based on 100 percent load.
   (2) Combined heat and power units that meet the 60-percent
efficiency standard may take a credit to meet the applicable NOx
emissions standard of 0.07 pounds per megawatthour. Credit shall be
at the rate of one megawatthour for each 3,400,000 British thermal
units (Btus) of heat recovered.
   (3) The customer receiving incentives shall adequately maintain
and service the combined heat and power units so that during
operation the system continues to meet or exceed the efficiency and
emissions standards established pursuant to paragraphs (1) and (2).
   (4) Notwithstanding paragraph (1), a project that does not meet
the applicable NOx emissions standard is eligible if it meets both of
the following requirements:
   (A) The project operates solely on waste gas. The commission shall
require a customer that applies for an incentive pursuant to this
paragraph to provide an affidavit or other form of proof that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
"waste gas" means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery to
the utility pipeline system.
   (B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit compared to permitted onsite emissions if the project does
not operate. The commission shall require the customer to secure the
permit prior to receiving incentives.
   (d) In determining the eligibility for the self-generation
incentive program, minimum system efficiency shall be determined
either by calculating electrical and process heat efficiency as set
forth in Section 216.6, or by calculating overall electrical
efficiency.
   (e) Eligibility for incentives under the program shall be limited
to distributed energy resource technologies that the commission
determines meet all of the following requirements:
   (1) The distributed energy resource technology shifts onsite
energy use to off-peak time periods or reduces demand from the grid
by offsetting some or all of the customer's onsite energy load,
including, but not limited to, peak electric load.
   (2) The distributed energy resource technology is commercially
available.
   (3) The distributed energy resource technology safely utilizes the
existing transmission and distribution system.
   (4) The distributed energy resource technology improves air
quality by reducing criteria air pollutants.
   (f) Recipients of the self-generation incentive program funds
shall provide relevant data to the commission and the State Air
Resources Board, upon request, and shall be subject to onsite
inspection to verify equipment operation and performance, including
capacity, thermal output, and usage to verify criteria air pollutant
and greenhouse gas emissions performance.
   (g) In administering the self-generation incentive program, the
commission shall determine a capacity factor for each distributed
generation system energy resource technology in the program.
   (h) (1) In administering the self-generation incentive program,
the commission may adjust the amount of rebates and evaluate other
public policy interests, including, but not limited to, ratepayers,
energy efficiency, peak load reduction, load management, and
environmental interests.
   (2) The commission shall consider the relative amount and the cost
of greenhouse gas emissions reductions, peak demand reductions,
system reliability benefits, and other measurable factors when
allocating program funds between eligible technologies.
   (i) The commission shall ensure that distributed generation
resources are made available in the program for all ratepayers.
   (j) In administering the self-generation incentive program, the
commission shall provide an additional incentive of 20 percent from
existing program funds for the installation of eligible distributed
generation resources manufactured in California.
   (k) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy (CARE) program.
   (  l  ) The commission shall evaluate the overall success
and impact of the self-generation incentive program based on the
following performance measures:
   (1) The amount of reductions of emissions of greenhouse gases.
   (2) The amount of reductions of emissions of criteria air
pollutants measured in terms of avoided emissions and reductions of
criteria air pollutants represented by emissions credits secured for
project approval.
   (3) The amount of energy reductions measured in energy value.
   (4) The amount of reductions of customer peak demand.
   (5) The ratio of the electricity generated by distributed energy
resource generation projects receiving incentives from the program to
the electricity capable of being produced by those projects,
commonly known as a capacity factor.
   (6) The value to the electrical transmission and distribution
system measured in avoided costs of transmission and distribution
upgrades and replacement.
   (7) The ability to improve onsite electricity reliability as
compared to onsite electricity reliability before the self-generation
incentive program technology was placed in service.
  SEC. 8.  Section 399.12 of the Public Utilities Code is amended to
read:
   399.12.  For purposes of this article, the following terms have
the following meanings:
   (a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
   (b) "Balancing authority" means the responsible entity that
integrates resource plans ahead of time, maintains load-interchange
generation balance within a balancing authority area, and supports
interconnection frequency in real time.
   (c) "Balancing authority area" means the collection of generation,
transmission, and loads within the metered boundaries of the area
within which the balancing authority maintains the electrical
load-resource balance.
   (d) "California balancing authority" is a balancing authority with
control over a balancing authority area primarily located in this
state and operating for retail sellers and local publicly owned
electric utilities subject to the requirements of this article and
includes the Independent System Operator (ISO) and a local publicly
owned electric utility operating a transmission grid that is not
under the operational control of the ISO. A California balancing
authority is responsible for the operation of the transmission grid
within its metered boundaries which may not be limited by the
political boundaries of the State of California.
   (e) "Eligible renewable energy resource" means an electrical
generating facility that meets the definition of a "renewable
electrical generation facility" in Section 25741 of the Public
Resources Code, subject to the following:
   (1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility procured the electricity from the
facility as of December 31, 2005. A new hydroelectric facility that
commences generation of electricity after December 31, 2005, is not
an eligible renewable energy resource if it will cause an adverse
impact on instream beneficial uses or cause a change in the volume or
timing of streamflow.
   (B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
   (C) A facility approved by the governing board of a local publicly
owned electric utility prior to June 1, 2010, for procurement to
satisfy renewable energy procurement obligations adopted pursuant to
former Section 387, shall be certified as an eligible renewable
energy resource by the Energy Commission pursuant to this article, if
the facility is a "renewable electrical generation facility" as
defined in Section 25741 of the Public Resources Code.
   (D) (i) A small hydroelectric generation unit with a nameplate
capacity not exceeding 40 megawatts that is operated as part of a
water supply or conveyance system is an eligible renewable energy
resource only for the retail seller or local publicly owned electric
utility that procured the electricity from the unit as of December
31, 2005. No unit shall be eligible pursuant to this subparagraph if
an application for certification is submitted to the Energy
Commission after January 1, 2013. Only one retail seller or local
publicly owned electric utility shall be deemed to have procured
electricity from a given unit as of December 31, 2005.
   (ii) Notwithstanding clause (i), a local publicly owned electric
utility that meets the criteria of subdivision (j) of Section 399.30
may sell to another local publicly owned electric utility electricity
from small hydroelectric generation units that qualify as eligible
renewable energy resources under clause (i), and that electricity may
be used by the local publicly owned electric utility that purchased
the electricity to meet its renewables portfolio standard procurement
requirements. The total of all those sales from the utility shall be
no greater than 100,000 megawatthours of electricity.
   (iii) The amendments made to this subdivision by the act adding
this subparagraph are intended to clarify existing law and apply from
December 10, 2011.
   (2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable energy resource unless
it is located in Stanislaus County and was operational prior to
September 26, 1996.
   (f) "Procure" means to acquire through ownership or contract.
   (g) "Procurement entity" means any person or corporation
authorized by the commission to enter into contracts to procure
eligible renewable energy resources on behalf of customers of a
retail seller pursuant to subdivision (f) of Section 399.13.
   (h) (1) "Renewable energy credit" means a certificate of proof
associated with the generation of electricity from an eligible
renewable energy resource, issued through the accounting system
established by the Energy Commission pursuant to Section 399.25, that
one unit of electricity was generated and delivered by an eligible
renewable energy resource.
   (2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
   (3) (A) Electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity used to generate electricity in the same process
through which the facility converts renewable fuel to electricity,
shall not result in the creation of a renewable energy credit. The
Energy Commission shall set the de minimis quantity of nonrenewable
fuels for each renewable energy technology at a level of no more than
2 percent of the total quantity of fuel used by the technology to
generate electricity. The Energy Commission may adjust the de minimis
quantity for an individual facility, up to a maximum of 5 percent,
if it finds that all of the following conditions are met:
   (i) The facility demonstrates that the higher quantity of
nonrenewable fuel will lead to an increase in generation from the
eligible renewable energy facility that is significantly greater than
generation from the nonrenewable fuel alone.
   (ii) The facility demonstrates that the higher quantity of
nonrenewable fuels will reduce the variability of its electrical
output in a manner that results in net environmental benefits to the
state.
   (iii) The higher quantity of nonrenewable fuel is limited to
either natural gas or hydrogen derived by reformation of a fossil
fuel.
                       (B) Electricity generated by a small
hydroelectric generation facility shall not result in the creation of
a renewable energy credit unless the facility meets the requirements
of subparagraph (A) or (D) of paragraph (1) of subdivision (e).
   (C) Electricity generated by a conduit hydroelectric generation
facility shall not result in the creation of a renewable energy
credit unless the facility meets the requirements of subparagraph (B)
of paragraph (1) of subdivision (e).
   (D) Electricity generated by a facility engaged in the combustion
of municipal solid waste shall not result in the creation of a
renewable energy credit unless the facility meets the requirements of
paragraph (2) of subdivision (e).
   (i) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller or a local publicly owned electric utility is
required to procure pursuant to this article.
   (j) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
   (1) An electrical corporation, as defined in Section 218.
   (2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
   (3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric service provider shall be
subject to the same terms and conditions applicable to an electrical
corporation pursuant to this article. This paragraph does not impair
a contract entered into between an electric service provider and a
retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
   (4) "Retail seller" does not include any of the following:
   (A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.

   (B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
   (C) A local publicly owned electric utility.
   (k) "WECC" means the Western Electricity Coordinating Council of
the North American Electric Reliability Corporation, or a successor
to the corporation.
  SEC. 9.  Section 62 of Chapter 35 of the Statutes of 2014 is
amended to read:
  Sec. 62.  It is the intent of the Legislature that the
reorganization and transfer made by Sections 63 to 127, inclusive,
Section 181, Section 182, Sections 187 to 191, inclusive, and Section
193 of this act be carried out in a manner to preserve state primacy
under the federal Safe Drinking Water Act and that the terms of this
act shall be liberally construed to achieve this purpose.
  SEC. 10.  Section 193 of Chapter 35 of the Statutes of 2014 is
amended to read:
  Sec. 193.  Notwithstanding any other law, the balance of the
appropriation provided for in Item 4265-111-0001 of Chapter 2 of the
Statutes of 2014, for the purposes specified in Provision 3 of that
item, is hereby appropriated to the State Water Resources Control
Board, as of June 30, 2014. These funds shall be available for
encumbrance or expenditure until June 30, 2016, and available for
liquidation until June 30, 2018, for purposes consistent with
subdivisions (a) and (c) of Section 75021 of the Public Resources
Code for grants pursuant to the Public Water System Drought Emergency
Funding Guidelines adopted by the State Department of Public Health
on March 28, 2014, for public water systems to address
drought-related drinking water emergencies. The State Water Resources
Control Board shall make every effort to use other funds available
to address drinking water emergencies, including federal funds made
available for the drought, prior to using the funds specified in this
section.
  SEC. 11.  The sum of five hundred twenty-nine thousand dollars
($529,000) is hereby appropriated from the Cost of Implementation
Account, established pursuant to Section 16428.95 of the Government
Code, to the Secretary of the Natural Resources Agency for the
purpose of implementing elements of the scoping plan adopted by the
State Air Resources Board pursuant to Section 38561 of the Health and
Safety Code.
  SEC. 12.  For purposes of Section 4 of this act, the Legislature
finds and declares both of the following:
   (a) A special law is necessary and a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the unique circumstances involving
the Leland Stanford Mansion State Historical Park.
   (b) The Leland Stanford Mansion Foundation is a nonprofit
organization that has raised nearly half the moneys for the
restoration of the mansion now operated as the Leland Stanford
Mansion State Historical Park. The Leland Stanford Mansion Foundation
now desires to retain a contractor and pay for the restoration of
the historic front staircase, which is in a severe state of disrepair
and needs work to commence as soon as possible.
  SEC. 13.   This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.