BILL NUMBER: SB 96	CHAPTERED
	BILL TEXT

	CHAPTER  356
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2013
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2013
	PASSED THE SENATE  SEPTEMBER 10, 2013
	PASSED THE ASSEMBLY  SEPTEMBER 6, 2013
	AMENDED IN ASSEMBLY  AUGUST 26, 2013

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 10, 2013

   An act to amend Section 1352 of, to add Section 2850.5 to, and to
repeal Section 712.5 of, the Fish and Game Code, to amend Sections
927.9, 11549.3, and 51018 of, and to add Section 1304 to, the
Government Code, to amend Section 44299.91 of the Health and Safety
Code, to amend Section 12211 of the Public Contract Code, to amend
Sections 4785, 5018.1, 5080.18, 5096.650, 14538, 14539, 14549.5,
14553, 14572, 14591, 25751, 26052, 26055, 26060, 26062, 26063, 35600,
35605, 35625, 42977, 48704, 71300, 71301, 71302, 71303, 71304, and
71305 of, to add Sections 25711.5 and 25711.7 to, and to repeal
Sections 4124 and 4515 of, the Public Resources Code, to amend
Sections 309.5, 2851, and 5900 of, and to add Sections 318, 740.5,
854.5, and 2120 to, the Public Utilities Code, to add Section 104.22
to the Streets and Highways Code, and to amend Section 85200 of, and
to add Section 10001.7 to, the Water Code, and to repeal Section 34
of Chapter 718 of the Statutes of 2010, relating to public resources,
and making an appropriation therefor, to take effect immediately,
bill related to the budget.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 96, Committee on Budget and Fiscal Review. Budget Act of 2013:
public resources.
   (1) Existing law requires that any moneys appropriated from the
Public Resources Account in the Cigarette and Tobacco Products Surtax
Fund for programs to protect, restore, enhance, or maintain
waterfowl habitat be transferred to the Department of Fish and
Wildlife for expenditure for those same purposes.
   Existing law requires that any moneys appropriated to the
Department of Fish and Wildlife from the California Environmental
License Plate Fund in an amount not to exceed the amount transferred
to the Department of Fish and Wildlife pursuant to the above
provisions be transferred to the Department of Parks and Recreation
for expenditure for exclusive trust purposes that include, among
other things, the acquisition, preservation, restoration, or any
combination thereof, of natural areas or ecological reserves.
   This bill would repeal these provisions.
   (2) The Wildlife Conservation Law of 1947 authorizes the Wildlife
Conservation Board to, among other things, authorize the Department
of Fish and Wildlife to lease, sell, exchange, or otherwise transfer
any real property, interest in real property, or option acquired by
or held under the jurisdiction of the board or the department. The
law also authorizes the board to authorize the department to lease
degraded potential wildlife habitat real property to nonprofit
organizations, local governmental agencies, or state and federal
agencies if specified conditions are met. The law requires proceeds
from specified transactions, including leases, entered into pursuant
to these provisions to be deposited into the Wildlife Restoration
Fund, except as provided.
   This bill would require any moneys received in the Wildlife
Restoration Fund from leases pursuant to these provisions to be
expended, upon appropriation, by the Department of Fish and Wildlife
for the purposes of managing, maintaining, restoring, or operating
lands owned and managed by the department.
   (3) The California Prompt Payment Act dictates that a state agency
that fails to make a timely payment for goods or services acquired
pursuant to a contract with a specified business or organization is
subject to a late payment penalty. The act requires state agencies,
on an annual basis within 90 calendar days following the end of each
fiscal year, to provide the Director of General Services with a
report on late payment penalties that were paid by the agency during
the preceding fiscal year.
   This bill would exclude the Department of Forestry and Fire
Protection from the above-described reporting requirements.
   (4) Existing law provides for the appointment of Members of the
Legislature to various state boards and commissions.
   This bill would authorize the Speaker of the Assembly and the
Senate Rules Committee to appoint a Member of the Legislature or
legislative staff to serve as an alternate to a Member of the
Legislature appointed to a state board or commission within the
Natural Resources Agency in the Member's absence.
   (5) Existing law creates the Office of Information Security in the
Department of Technology, to ensure the confidentiality, integrity,
and availability of state systems and applications, and to promote
and protect consumer privacy to ensure the trust of the residents of
the state. The office is under the direction of a director. Existing
law authorizes the office to conduct, or require to be conducted,
independent security assessments of any state agency, department, or
office, the cost of which is required to be funded by the state
agency, department, or office being assessed.
   This bill would prohibit the office from requiring an independent
security assessment of the Department of Forestry and Fire
Protection.
   (6) Existing law requires the State Fire Marshal to issue a report
identifying pipeline leak incident rate trends, reviewing current
regulatory effectiveness with regard to pipeline safety, and
recommending any necessary changes to the Legislature. Existing law
requires a pipeline operator, within 30 days of a pipeline rupture,
explosion, or fire, to file a report with the State Fire Marshal.
   This bill would delete these requirements.
   (7) Existing law, the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006, approved by the voters
as Proposition 1B at the November 7, 2006, statewide general
election, authorizes the issuance of $19,925,000,000 of general
obligation bonds for specified purposes, including schoolbus retrofit
and replacement purposes. Existing law also establishes various
programs for the reduction of vehicular air pollution, including the
Lower-Emission School Bus Program adopted by the State Air Resources
Board. Existing law appropriates funds to the state board and
requires the state board to allocate these bond funds in specified
ways, including funding to local air pollution control and air
quality management districts.
   This bill would require funds authorized by the State Air
Resources Board during or subsequent to the 2013-14 fiscal year to be
allocated to local air pollution control and air quality management
districts by prioritizing to retrofit or replace the most polluting
schoolbuses in small local air pollution control and air quality
management districts first and then medium local air pollution
control and air quality management districts as defined by the state
board. The bill would require each allocation to provide sufficient
funding for at least one project to be implemented pursuant to the
Lower-Emission School Bus Program. The bill, if a local air pollution
control or air quality management district has unspent funds within
6 months of the expenditure deadline, would require the local air
pollution control or air quality management district to work with the
state board to transfer those funds to an alternative local air
pollution control or air quality management district with existing
demand.
   (8) Existing law requires a state agency to report annually to the
Department of Resources Recycling and Recovery on its progress in
meeting recycled product purchasing requirements and requires the
Department of Resources Recycling and Recovery to provide this
reported information to the Legislature in an agency-specific report.

   This bill would exempt the Department of Forestry and Fire
Protection from this reporting requirement and would delete the
requirement that the Department of Resources Recycling and Recovery
provide the report to the Legislature.
   (9) Existing law requires the Department of Forestry and Fire
Protection to submit an annual report to the Joint Legislative Budget
Committee regarding emergency incidents.
   This bill would delete this requirement and other obsolete
reporting provisions.
   (10) Existing law requires the State Board of Forestry and Fire
Protection to submit a report to the Legislature on the actions taken
by the board relating to forest practices, as provided. Existing law
requires the Department of Forestry and Fire Protection to prepare
reports for the board setting forth data as to the experiments
conducted by the department, and existing law requires the board to
make these reports available to the Legislature.
   This bill would delete the requirements that the board provide
these reports to the Legislature.
   (11) Existing law authorizes the Department of Finance to delegate
to the Department of Parks and Recreation the right to exercise the
same authority granted to the Division of the State Architect and the
Real Estate Services Division in the Department of General Services,
to plan, design, construct, and administer contracts and
professional services for legislatively approved capital outlay
projects. This provision is repealed as of January 1, 2014.
   This bill would extend the repeal date to January 1, 2019.
   (12) Existing law authorizes the Department of Parks and
Recreation to enter into contracts with natural persons,
corporations, partnerships, and associations for the construction,
maintenance, and operation of concessions within units of the state
park system. Existing law requires those concession contracts to
contain certain specified provisions, including a provision that the
maximum term shall be 10 years, except that a term of more than 10
years may be provided if the Director of Parks and Recreation
determines that the longer term is necessary to allow the
concessionaire to amortize improvements made by the concessionaire,
to facilitate the full utilization of a structure that is scheduled
by the department for replacement or redevelopment, or to serve the
best interests of the state. Existing law prohibits, with certain
exceptions, the term of a concession contract from exceeding 20 years
without specific authorization by statute.
   This bill would authorize the term to exceed 20 years for a
concession agreement at Will Rogers State Beach executed prior to
December 31, 1997, as provided, without specific authorization by
statute upon approval by the director and pursuant to a determination
by the director that the longer term is necessary to allow the
concessionaire to amortize improvements made by the concessionaire
that are anticipated to exceed $1,500,000 in capital improvements.
The bill would prohibit the extension of the term from exceeding 15
years.
   (13) Existing law, the California Clean Water, Clean Air, and Safe
Neighborhood Parks, and Coastal Protection Act of 2002, approved by
the voters as Proposition 40 at the March 5, 2002, statewide primary
election, authorizes the issuance of bonds in the amount of
$2,600,000,000, for the purpose of financing a program for the
acquisition, development, restoration, protection, rehabilitation,
stabilization, reconstruction, preservation, and interpretation of
park, coastal, agricultural land, air, and historical resources, as
specified.
   Proposition 40 requires that a specified sum from the proceeds of
bonds issued and sold under its provisions, which is available upon
appropriation by the Legislature, be allocated to the State Air
Resources Board for grants to air pollution control and air quality
management districts pursuant to the Carl Moyer Memorial Air Quality
Standards Attainment Program for projects that reduce air pollution
that affects air quality in state and local park and recreation
areas.
   This bill would require that allocations of these funds to the
Lower-Emission School Bus Program be prioritized to retrofit or
replace the most polluting schoolbuses in small local air quality
management districts first and then to medium local air quality
management districts as defined by the state board. The bill would
require that each allocation for this purpose provide enough funding
for at least one project to be implemented pursuant to the
Lower-Emission School Bus Program. The bill, if a local air quality
management district has unspent funds within 6 months of the
expenditure deadline, would require the local air quality management
district to work with the state board to transfer funds to an
alternative local air quality management district with existing
demand.
   (14) Existing law, the California Beverage Container Recycling and
Litter Reduction Act, requires a distributor to pay a redemption
payment for every beverage container sold or offered for sale in the
state to the Department of Resources Recycling and Recovery. The act
requires that every convenience zone be served by at least one
certified recycling center and the department is required to certify
recycling centers and processors for purposes of the act. The
Director of Resources Recycling and Recovery is required to adopt, by
regulation, procedures for the certification of recycling centers
and processors.
   This bill would require the Department of Resources Recycling and
Recovery to review whether an application for certification as a
recycling center or processor, or renewal of a certification, is
complete within 30 working days of receipt and if the department
deems an application complete, the department would be required to
approve or deny the application no later than 60 calendar days after
the date when the application was deemed complete. The bill would
also require, on and after January 1, 2014, an applicant for
certification as a recycling center or processor, or for renewal of a
certification, to complete a precertification training program and
meet all other qualification requirements prescribed by the
department, which would be authorized to include requiring the
applicant to obtain a passing score on an examination administered by
the department.
   (15) Existing law specifies requirements for the reports, claims,
and information required to be submitted to the Department of
Resources Recycling and Recovery pursuant to the act.
   This bill would instead require a person otherwise subject to
these requirements to use the Division of Recycling Integrated
Information System (DORIIS) or other system designated by the
Department of Resources Recycling and Recovery for reporting, making,
or claiming payments or providing other information for purposes of
the act.
   (16) Existing law requires certified recycling centers to accept
any empty beverage container from a consumer or dropoff or collection
program and pay the refund value, which can be based on weight.
Existing law requires the department to review and calculate the
commingled rates paid for beverage containers and postfilled
containers paid to curbside recycling programs, collection programs,
and recycling centers.
   This bill would require, on and after September 1, 2013, a
certified recycling center, for beverage containers redeemed by
consumers, to pay the refund value based on the applicable segregated
rate. The bill would delete recycling centers from those entities
for which the department is required to calculate a commingled rate.
   (17) Existing law provides that a violation of the act is an
infraction. The act also provides that a person who, with intent to
defraud, takes specified actions, is guilty of fraud, punishable as
specified.
   This bill would additionally provide that a person who violates a
regulation adopted pursuant to the act is guilty of an infraction.
The bill would instead specify that a person who, with intent to
defraud, takes those actions knowingly is guilty of a crime,
punishable as specified.
   (18) Because a violation of the act is a crime, the bill would
impose a state-mandated local program by creating new crimes with
regard to the submission of information to the department, the
payment of refund values, and the violation of a regulation.
   (19) The California Constitution establishes the Public Utilities
Commission, with jurisdiction over all public utilities, as defined.
The Reliable Electric Service Investments Act required the Public
Utilities Commission to require the state's 3 largest electrical
corporations, until January 1, 2012, to identify a separate
electrical rate component, commonly referred to as the "public goods
charge," to collect specified amounts to fund energy efficiency,
renewable energy, and research, development, and demonstration
programs that enhance system reliability and provide in-state
benefits. Existing decisions of the Public Utilities Commission
institute an Electric Program Investment Charge (EPIC) to fund
renewable energy and research, development, and demonstration
programs.
   Existing law creates in the State Treasury the Electric Program
Investment Charge Fund to be administered by the State Energy
Resources Conservation and Development Commission and requires moneys
received by the Public Utilities Commission for those programs the
Public Utilities Commission has determined should be administered by
the State Energy Resources Conservation and Development Commission to
be forwarded by the Public Utilities Commission to the State Energy
Resources Conservation and Development Commission at least quarterly
for deposit in the fund.
   This bill would require the State Energy Resources Conservation
and Development Commission, in administering moneys in the fund for
research, development, and demonstration programs, to develop and
administer the EPIC program for the purpose of awarding funds to
projects that may lead to technological advancement and breakthroughs
to overcome barriers that prevent the achievement of the state's
statutory energy goals and that may result in a portfolio of projects
that is strategically focused and sufficiently narrow to make
advancement on the most significant technological challenges. The
bill would require the State Energy Resources Conservation and
Development Commission, no later than April 30 of each year, to
prepare and submit to the Legislature an annual report regarding the
EPIC program.
   This bill would prohibit the Public Utilities Commission from
requiring the collection of moneys pursuant to a specified decision
and any amendments to that decision in an annual amount greater than
the amount set forth in that decision of the Public Utilities
Commission.
   (20) Existing law establishes the Emerging Renewable Resources
Account, a continuously appropriated account, within the Renewable
Resource Trust Fund for specified purposes related to renewable
energy.
   This bill would additionally authorize the use of the moneys in
the account for the purposes of funding the New Solar Homes
Partnership. Because the bill would expand the purposes of a
continuously appropriated account, the bill would make an
appropriation.
   (21) Existing law defines a PACE program as a program that is
financed by a PACE bond. Existing law requires the California
Alternative Energy and Advanced Transportation Financing Authority to
develop and administer a PACE Reserve program to reduce the overall
costs to property owners of a Property Assessed Clean Energy bond, or
PACE bond, issued by an applicant that has established a Property
Assessed Clean Energy program, or PACE program, by providing a
reserve of no more than 10% of the initial amount of the PACE bond.
Existing law, in 2010, appropriates, until January 1, 2015,
$50,000,000 from the Renewable Resource Trust Fund for the above
purpose.
   This bill would additionally require the authority to develop and
administer a PACE risk mitigation program for PACE loans to increase
their acceptance in the marketplace and protect against the risk of
default and foreclosure. The bill would additionally include a PACE
loan program as a PACE program. Because this bill would expand the
use of the moneys appropriated by existing law, this bill would make
an appropriation.
   (22) Existing law requires the Department of Fish and Wildlife to
regulate the protection of marine plants and animals in marine
protected areas, as defined.
   Existing law establishes the Ocean Protection Council in state
government, and prescribes the membership, terms of office, and
functions and duties of the council.
   This bill would require that, commencing on July 1, 2013, the
Ocean Protection Council assume responsibility for the direction of
policy of marine protected areas.
   (23) Existing law requires that at the Ocean Protection Council's
first meeting in a calendar year, the council elect a chairperson
from among its voting members.
   This bill would delete that requirement and would instead require
that the Secretary of the Natural Resources Agency serve as the
chairperson of the Ocean Protection Council, and that the Secretary
for Environmental Protection serve as the vice chairperson of the
council. The bill would require that the Assistant Secretary for
Coastal Matters at the Natural Resources Agency be designated as the
Deputy Secretary of the Natural Resources Agency for Ocean and
Coastal Policy, and would require the deputy secretary to also serve
as the executive director for the council.
   (24) Existing law authorizes the Legislature to make
appropriations directly to the State Coastal Conservancy for
expenditures authorized by the council for specified purposes related
to the regulation of coastal development and protection.
   This bill would instead authorize the Legislature to make those
appropriations directly to the Secretary of the Natural Resources
Agency for those expenditures authorized by the council for specified
purposes related to the regulation of coastal development and
protection. The bill would also require that any bond funds received
by the State Coastal Conservancy, on or before July 1, 2013,
authorized to fund Ocean Protection Council's programs be transferred
to the Natural Resources Agency for use for those programs. The bill
would provide for the transfer to the secretary of certain functions
and duties of the State Coastal Conservancy with regard to the
implementation of contracts and grants on behalf of the council.
   (25) The California Integrated Waste Management Act of 1989,
administered by the Department of Resources Recycling and Recovery,
requires a manufacturer of carpets sold in this state, individually
or through a carpet stewardship organization, to submit a carpet
stewardship plan to the department. A manufacturer or carpet
stewardship organization submitting a carpet stewardship plan is
required to pay the department an annual administrative fee, as
determined by the department. The department is also required to
identify the direct development or regulatory costs incurred by the
department prior to the submittal of carpet stewardship plans and to
establish a fee in an amount adequate to cover those costs, that is
required to be paid in 3 equal payments by a carpet stewardship
organization that submits a carpet stewardship plan. Existing law
establishes the Carpet Stewardship Account in the Integrated Waste
Management Fund and requires these fees to be deposited in that
account, for expenditure by the department, upon appropriation by the
Legislature, to cover the department's cost to implement the carpet
stewardship program provisions.
   This bill would instead require a carpet stewardship organization
to pay these fees quarterly to the Department of Resources Recycling
and Recovery and would make conforming changes regarding those
requirements.
   (26) The act requires a manufacturer of architectural paint or
designated stewardship organization to submit to the Department of
Resources Recycling and Recovery an architectural paint stewardship
plan to develop and implement a recovery program to manage the end of
life of postconsumer architectural paint. A stewardship organization
is required to pay the department an annual administrative fee in
the amount that is sufficient to cover the department's full costs of
administering and enforcing the program. The fee is required to be
deposited in the Architectural Paint Stewardship Account in the
Integrated Waste Management Fund, which may be expended by the
department, upon appropriation by the Legislature, to cover the
department's costs to implement the architectural paint stewardship
program provisions.
   This bill would require the stewardship organization to pay the
fees quarterly and would require the Department of Resources
Recycling and Recovery to impose the fees in an amount that includes
any program development costs or regulatory costs incurred by the
department prior to the submittal of the stewardship plans.
   (27) Existing law establishes the Office of Education and the
Environment in the Department of Resources Recycling and Recovery to
implement the statewide environmental educational program and
requires the office, in cooperation with the State Department of
Education and the State Board of Education, to develop and implement
a unified education strategy on the environment for elementary and
secondary schools in the state. The Governor's Reorganization Plan
No. 2 of 2012, which will become effective July 1, 2013, provides
that CalRecycle is transferred from the Natural Resources Agency to
the California Environmental Protection Agency.
   This bill would make conforming changes with regard to the
establishment of the office in the Department of Resources Recycling
and Recovery.
   (28) Existing law requires the Office of Education and the
Environment to develop a model environmental curriculum incorporating
certain environmental principles and to submit the model curriculum
to the Curriculum Development and Supplemental Materials Commission
for review, as prescribed.
   This bill would instead require the model curriculum to be
submitted to the Instructional Quality Commission for review.
   (29) Existing law requires the State Department of Education to
make the curriculum available electronically and requires the
California Environmental Protection Agency to assume the costs
associated with the printing of the approved model curriculum.
   This bill would instead require the Department of Resources
Recycling and Recovery to make the curriculum available
electronically and would delete the requirement with regard to the
assumption of those costs. The bill would require the department to
coordinate with specified state agencies to facilitate use of the
model environmental curriculum and would authorize the department and
those state agencies to collaborate with other specified entities to
implement the program.
   (30) Existing law establishes the Environmental Education Account
in the State Treasury and authorizes the California Environmental
Protection Agency to expend the moneys in the account, upon
appropriation by the Legislature, for purposes of the program.
   This bill would instead authorize the Department of Resources
Recycling and Recovery to expend the funds in the account.
   (31) Existing law establishes the Division of Ratepayer Advocates
within the Public Utilities Commission to represent the interests of
public utility customers and subscribers, with the goal of obtaining
the lowest possible rate for service consistent with reliable and
safe service levels. Existing law requires the Director of the
Division of Ratepayer Advocates to submit a budget to the Public
Utilities Commission for final approval. Existing law authorizes the
director of the division to appoint a lead attorney to represent the
division and requires all attorneys assigned by the Public Utilities
Commission to perform services for the division to report to and be
directed by the lead attorney for the division.
   This bill would rename the Division of Ratepayer Advocates the
Office of Ratepayer Advocates and would require that the director of
the office develop a budget for the office that would be submitted to
the Department of Finance for final approval. The bill would require
the lead attorney to obtain adequate legal personnel for the work to
be conducted by the office from the Public Utilities Commission's
                                               attorney and requires
the Public Utilities Commission's attorney to timely and
appropriately fulfill all requests for legal personnel made by the
lead attorney for the office, provided the office has sufficient
moneys and positions in its budget for the services requested.
   (32) Existing law establishes the Public Utilities Commission
Utilities Reimbursement Account and authorizes the Public Utilities
Commission to annually determine a fee to be paid by every public
utility providing service directly to customers or subscribers and
subject to the jurisdiction of the Public Utilities Commission,
except for a railroad corporation. The Public Utilities Commission is
required to establish the fee, with the approval of the Department
of Finance, to produce a total amount equal to that amount
established in the authorized Public Utilities Commission budget for
the same year, and an appropriate reserve to regulate public
utilities, less specified sources of funding.
   This bill would require the Public Utilities Commission to conduct
a zero-based budget for all of its programs by January 10, 2015.
   (33) Existing law authorizes certain public utilities, including
electrical corporations and gas corporations, as defined, to propose
research and development programs and authorizes the Public Utilities
Commission to allow inclusion of expenses for research and
development in rates. Existing law requires the Public Utilities
Commission to consider specified guidelines in evaluating the
research, development, and demonstration programs proposed by
electrical corporations and gas corporations.
   This bill would prohibit the Public Utilities Commission, in
implementing the 21st Century Energy System Decision, as defined,
from authorizing recovery from ratepayers of any expense for research
and development projects that are not for purposes of cyber security
and grid integration and would limit total funding for research and
development projects for the purposes of cyber security and grid
integration from exceeding $35,000,000. The bill would require that
all cyber security and grid integration research and development
projects be concluded by the 5th anniversary of their start date. The
bill would prohibit the Public Utilities Commission from approving
recovery from ratepayers of certain program management expenditures
proposed in the 21st Century Energy System Decision proceeding. The
bill would require the Public Utilities Commission to require the
Lawrence Livermore National Laboratory, Pacific Gas and Electric
Company, Southern California Edison Company, and San Diego Gas and
Electric Company to ensure that research parameters reflect a new
contribution to cyber security and grid integration and that there
not be a duplication of research being done by other private and
governmental entities. The bill would require the participating
electrical corporations to jointly report specified information to
the Public Utilities Commission by December 1, 2013, and 60 days
following conclusion of all research and development projects, and
would require the Public Utilities Commission, upon determining that
each report is sufficient, to report that information to the
Legislature.
   (34) Existing law requires the Public Utilities Commission, by
January 10 of each year, to report to the Joint Legislative Budget
Committee and appropriate fiscal and policy committees of the
Legislature on all sources and amounts of funding and actual and
proposed expenditures, including any costs to ratepayers, related to
specified entities or programs established by the Public Utilities
Commission by order, decision, motion, settlement, or other action,
including, but not limited to, the California Clean Energy Fund, the
California Emerging Technology Fund, and the Pacific Forest and
Watershed Lands Stewardship Council, and any entities or programs,
other than those expressly authorized by statute, that are
established by the Public Utilities Commission under specified
statutes.
   This bill would prohibit the Public Utilities Commission, by
order, decision, motion, settlement, or other action, from
establishing a nonstate entity, as defined, with any moneys other
than those moneys that would otherwise belong to the public utility's
shareholders. The bill would prohibit the Public Utilities
Commission from entering into a contract with any nonstate entity in
which a person serves as an owner, director, or officer while serving
as a commissioner. The bill would provide that any contract between
the Public Utilities Commission and a nonstate entity is void and
ceases to exist by operation of law if a person who was a
commissioner at the time the contract was awarded, entered into, or
extended, on or after January 1, 2014, becomes an owner, director, or
officer of the nonstate entity while serving as a commissioner.
   (35) The California Constitution provides that the Legislature may
remove a commissioner of the Public Utilities Commission for
incompetence, neglect of duty, or corruption, 2/3 of the membership
of each house concurring.
   This bill would, beginning June 1, 2014, provide that a
commissioner who acts as an owner, director, or officer of a nonstate
entity that was established prior to January 1, 2014, as a result of
an order, decision, motion, settlement, or other action by the
Public Utilities Commission in which the commissioner participated,
neglects his or her duty and may be removed pursuant to the
California Constitution.
   (36) The Public Utilities Act provides for the imposition of fines
and penalties by the Public Utilities Commission for various
violations of the act and provides that any public utility that
violates any provision of the California Constitution or the act, or
that fails or neglects to comply with any order, decision, decree,
rule, direction, demand, or requirement of the Public Utilities
Commission, where a penalty has not otherwise been provided, is
subject to a penalty of not less than $500 and not more than $50,000
for each offense. The act authorizes the Public Utilities Commission
to bring an action to recover fines and penalties imposed pursuant to
the act in the superior court and requires that all fines and
penalties recovered by the state in an action filed in the superior
court, together with the costs of bringing the action, be paid into
the State Treasury to the credit of the General Fund.
   This bill would prohibit the Public Utilities Commission from
distributing, expending, or encumbering any moneys received by the
Public Utilities Commission as a result of any Public Utilities
Commission proceeding or judicial action until the Public Utilities
Commission provides the Director of Finance with written notification
of the receipt of the moneys and the basis for these moneys being
received by the Public Utilities Commission and the director provides
not less than 60 days written notice to the Chairperson of the Joint
Legislative Budget Committee and the chairpersons of the appropriate
budget subcommittees of the Assembly and Senate of the receipt of
the moneys and the basis for those moneys being received by the
Public Utilities Commission.
   (37) Decisions of the Public Utilities Commission adopted the
California Solar Initiative. Existing law requires the Public
Utilities Commission to undertake certain steps in implementing the
California Solar Initiative. Existing law requires the Public
Utilities Commission to ensure that the total cost of the California
Solar Initiative over the duration of the program does not exceed
$3,350,000,000, including $400,000,000 from the Emerging Renewable
Resources Account within the Renewable Resource Trust Fund, for
programs for the installation of solar energy systems, as defined, on
new construction administered by the State Energy Resources
Conservation and Development Commission, known as the New Solar Homes
Partnership Program.
   This bill would authorize the Public Utilities Commission, if it
is notified by the State Energy Resources Conservation and
Development Commission that funding available pursuant to the
Emerging Renewable Resources Account for the New Solar Homes
Partnership Program has been exhausted, to require an electrical
corporation to continue administration of the program pursuant to the
guidelines established for the program by the State Energy Resources
Conservation and Development Commission, until the funding limit of
$400,000,000 has been reached. The bill would require the Public
Utilities Commission, in consultation with the State Energy Resources
Conservation and Development Commission, to supervise the
administration of the continuation of the New Solar Homes Partnership
Program by an electrical corporation. The bill would authorize an
electrical corporation to elect to have a 3rd-party administer the
utility's continuation of the program.
   (38) Existing law authorizes the Department of Transportation to
acquire real property for state highway purposes. Existing law
specifies various procedures to be followed by the department when it
determines that real property acquired for state highway purposes is
no longer necessary for those purposes, generally under terms and
conditions established by the California Transportation Commission.
   This bill would require the Department of Transportation to
transfer certain real property it owns in the City of San Diego to
the Department of Parks and Recreation for incorporation into the
state park system. The bill would require the transfer to be
completed within 90 days of the effective date of the bill. The bill
would make various findings and declarations in that regard.
   (39) Under existing law, the Department of Water Resources
operates the State Water Project and exercises other functions
relating to the state's water resources. Under the Federal Power Act,
the Federal Energy Regulatory Commission, or FERC, is responsible
for the relicensing of federally licensed hydroelectric power
projects.
   This bill would require the Director of Finance to notify the
Joint Legislative Budget Committee of any hydroelectric power project
relicensing proposal for the FERC that, if approved by the
Department of Water Resources, would obligate the General Fund in the
current or future years. This bill would authorize the department to
approve that relicensing proposal not less than 30 days after the
director notifies the committee.
   (40) Existing law, the Sacramento-San Joaquin Delta Reform Act of
2009, establishes the Delta Stewardship Council, consisting of 7
voting members. Existing law prohibits a member of the council from
serving 2 consecutive terms, but permits a member to be reappointed
after a period of 2 years following the end of his or her term.
   This bill would eliminate the above-described prohibition.
   (41) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (42) This bill would reappropriate to the Coachella Valley
Mountains Conservancy the balance of a specified appropriation made
in the Budget Act of 2010, the moneys to be available for capital
outlay or local assistance until June 30, 2016.
   (43) 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 712.5 of the Fish and Game Code is repealed.
  SEC. 2.  Section 1352 of the Fish and Game Code is amended to read:

   1352.  (a) The money in the Wildlife Restoration Fund, as provided
for by Section 19632 of the Business and Professions Code, is
available for expenditure under any provision of this chapter.
   (b) All federal moneys made available for projects authorized by
the board shall be deposited in the Wildlife Restoration Fund. Any
unexpended balances of the federal moneys remaining on or after June
30, 1979, in any other fund shall be transferred to the Wildlife
Restoration Fund.
   (c) Any moneys received in the Wildlife Restoration Fund from
leases authorized pursuant to paragraph (2) or (3) of subdivision (c)
of Section 1348 shall be expended, upon appropriation, by the
department for the purposes of managing, maintaining, restoring, or
operating lands owned and managed by the department.
  SEC. 3.  Section 2850.5 is added to the Fish and Game Code, to
read:
   2850.5.  Notwithstanding any other law and consistent with the
authority granted under Section 2860, commencing on July 1, 2013, the
Ocean Protection Council shall assume responsibility for the
direction of policy of marine protected areas (MPAs).
  SEC. 4.  Section 927.9 of the Government Code is amended to read:
   927.9.  (a) Except as provided in subdivision (c), on an annual
basis, within 90 calendar days following the end of each fiscal year,
state agencies shall provide the Director of General Services with a
report on late payment penalties that were paid by the state agency
in accordance with this chapter during the preceding fiscal year.
   (b) The report shall separately identify the total number and
dollar amount of late payment penalties paid to small businesses,
other businesses, and refunds or other payments to individuals. State
agencies may, at their own initiative, provide the director with
other relevant performance measures. The director shall prepare a
report separately listing the number and total dollar amount of all
late payment penalties paid to small businesses, other businesses,
and refunds and other payments to individuals by each state agency
during the preceding fiscal year, together with other relevant
performance measures, and shall make the information available to the
public.
   (c) The reporting requirements of subdivisions (a) and (b) are not
applicable to the Department of Forestry and Fire Protection.
  SEC. 5.  Section 1304 is added to the Government Code, to read:
   1304.  (a) The Speaker of the Assembly or the Senate Committee on
Rules may appoint a Member of the Legislature or legislative staff to
serve as an alternate for a Member of the Legislature appointed to a
state board or commission within the Natural Resources Agency in the
Member's absence.
   (b) An alternate designated pursuant to this section shall
exercise all of the rights, privileges, and powers that are available
to the Member with respect to serving on the board or commission
within the Natural Resources Agency. The alternate designated
pursuant to this section may not vote and shall adhere to the same
rules of conduct as a voting member and serve at the pleasure of the
Speaker of the Assembly or the Senate Committee on Rules.
   (c) An alternate designated pursuant to this section shall serve
on the board or commission within the Natural Resources Agency only
during the period for which the Member may serve on the board or
commission.
  SEC. 6.  Section 11549.3 of the Government Code is amended to read:

   11549.3.  (a) The director shall establish an information security
program. The program responsibilities include, but are not limited
to, all of the following:
   (1) The creation, updating, and publishing of information security
and privacy policies, standards, and procedures for state agencies
in the State Administrative Manual.
   (2) The creation, issuance, and maintenance of policies,
standards, and procedures directing state agencies to effectively
manage security and risk for both of the following:
   (A) Information technology, which includes, but is not limited to,
all electronic technology systems and services, automated
information handling, system design and analysis, conversion of data,
computer programming, information storage and retrieval,
telecommunications, requisite system controls, simulation, electronic
commerce, and all related interactions between people and machines.
   (B) Information that is identified as mission critical,
confidential, sensitive, or personal, as defined and published by the
Office of Information Security.
   (3) The creation, issuance, and maintenance of policies,
standards, and procedures directing state agencies for the
collection, tracking, and reporting of information regarding security
and privacy incidents.
   (4) The creation, issuance, and maintenance of policies,
standards, and procedures directing state agencies in the
development, maintenance, testing, and filing of each agency's
disaster recovery plan.
   (5) Coordination of the activities of agency information security
officers, for purposes of integrating statewide security initiatives
and ensuring compliance with information security and privacy
policies and standards.
   (6) Promotion and enhancement of the state agencies' risk
management and privacy programs through education, awareness,
collaboration, and consultation.
   (7) Representing the state before the federal government, other
state agencies, local government entities, and private industry on
issues that have statewide impact on information security and
privacy.
   (b) An information security officer appointed pursuant to Section
11546.1 shall implement the policies and procedures issued by the
Office of Information Security, including, but not limited to,
performing both of the following duties:
   (1) Comply with the information security and privacy policies,
standards, and procedures issued pursuant to this chapter by the
Office of Information Security.
   (2) Comply with filing requirements and incident notification by
providing timely information and reports as required by policy or
directives of the office.
   (c) (1) Except as provided in paragraph (2), the office may
conduct, or require to be conducted, independent security assessments
of any state agency, department, or office, the cost of which shall
be funded by the state agency, department, or office being assessed.
   (2) The office shall not conduct, or require to be conducted,
independent security assessments of the Department of Forestry and
Fire Prevention.
   (d) The office may require an audit of information security to
ensure program compliance, the cost of which shall be funded by the
state agency, department, or office being audited.
   (e) The office shall report to the Department of Technology any
state agency found to be noncompliant with information security
program requirements.
  SEC. 7.  Section 51018 of the Government Code is amended to read:
   51018.  (a) Every rupture, explosion, or fire involving a
pipeline, including a pipeline system otherwise exempted by
subdivision (a) of Section 51010.5, and including a pipeline
undergoing testing, shall be immediately reported by the pipeline
operator to the fire department having fire suppression
responsibilities and to the California Emergency Management Agency.
   (b) (1) The Office of Emergency Services shall immediately notify
the State Fire Marshal of the incident, who shall immediately
dispatch State Fire Marshal employees to the scene. The State Fire
Marshal or the employees, upon arrival, shall provide technical
expertise and advise the operator and all public agencies on
activities needed to mitigate the hazard.
   (2) For purposes of this subdivision, the Legislature does not
intend to hinder or disrupt the workings of the "incident commander
system," but does intend to establish a recognized element of
expertise and direction for the incident command to consult and
acknowledge as an authority on the subject of pipeline incident
mitigation. Furthermore, it is expected that the State Fire Marshal
will recognize the expertise of the pipeline operator and any other
emergency agency personnel who may be familiar with the particular
location of the incident and respect their knowledgeable input
regarding the mitigation of the incident.
   (c) For purposes of this section, "rupture" includes every
unintentional liquid leak, including any leak that occurs during
hydrostatic testing, except that a crude oil leak of less than five
barrels from a pipeline or flow line in a rural area, or any crude
oil or petroleum product leak in any in-plant piping system of less
than five barrels, when no fire, explosion, or bodily injury results
or no waterway is contaminated thereby, does not constitute a rupture
for purposes of the reporting requirements of subdivision (a).
    (d) This section does not preempt any other applicable federal or
state reporting requirement.
    (e) Except as otherwise provided in this section and Section
8589.7, a notification made pursuant to this section shall satisfy
any immediate notification requirement contained in any permit issued
by a permitting agency.
    (f) This section does not apply to pipeline ruptures involving
nonreportable crude oil spills under Section 3233 of the Public
Resources Code, unless the spill involves a fire or explosion.
  SEC. 8.  Section 44299.91 of the Health and Safety Code is amended
to read:
   44299.91.  Of the funds appropriated pursuant to Item
3900-001-6053 of Section 2.00 of the Budget Act of 2007, the State
Air Resources Board shall allocate the funds in accordance with all
of the following:
   (a) All schoolbuses in operation in the state of model year 1976
or earlier shall be replaced.
   (b) (1) The funds remaining after the allocation made pursuant to
subdivision (a) shall be apportioned to local air quality management
districts and air pollution control districts based on the number of
schoolbuses of model years 1977 to 1986, inclusive, that are in
operation within each district.
   (2) Each district shall determine the percentage of its allocation
to spend between replacement of schoolbuses of model years 1977 to
1986, inclusive, and retrofit of schoolbuses of any model year. Of
the funds spent by a district for replacement of schoolbuses pursuant
to this paragraph, a district shall replace the oldest schoolbuses
of model years 1977 to 1986, inclusive, within the district. Of the
funds spent by a district for retrofit of schoolbuses pursuant to
this paragraph, a district shall retrofit the most polluting
schoolbuses within the district.
   (c) All schoolbuses replaced pursuant to this section shall be
scrapped.
   (d) These funds shall be administered by either the California
Energy Commission or the local air district.
   (e) If a local air district's funds, including accrued interest,
are not committed by an executed contract as reported to the State
Air Resources Board on or before June 30, 2012, then those funds
shall be transferred, on or before January 1, 2013, to another local
air district that demonstrates an ability to expend the funds by
January 1, 2014. In implementing this section, the State Air
Resources Board in consultation with the local air districts shall,
by September 30, 2012, establish a list of potential recipient local
air districts, prioritizing local air districts with the most
polluting schoolbuses and the greatest need for schoolbus funding.
   (f) Each allocation made pursuant to this section to a local air
district shall provide enough funding for at least one project to be
implemented pursuant to the Lower-Emission School Bus Program adopted
by the State Air Resources Board. In the event a local air district
has unspent funds as of January 1, 2014, the local air district shall
work with the State Air Resources Board to transfer the unspent
funds to an alternative local air district with existing demand.
   (g) Funds made available pursuant to this chapter to a local air
district shall be expended by June 30, 2014.
   (h) All funds not expended by a local air district by June 30,
2014, shall be returned to the State Air Resources Board.
   (i) Funds authorized by the State Air Resources Board during or
subsequent to the 2013-14 fiscal year shall be allocated to local air
districts by prioritizing to retrofit or replace the most polluting
schoolbuses in small local air districts first and then medium local
air districts as defined by the State Air Resources Board. Each
allocation shall provide sufficient funding for at least one project
to be implemented pursuant to the Lower-Emission School Bus Program
adopted by the State Air Resources Board. If a local air district has
unspent funds within six months of the expenditure deadline, the
local air district shall work with the State Air Resources Board to
transfer those funds to an alternative local air district with
existing demand.
  SEC. 9.  Section 12211 of the Public Contract Code is amended to
read:
   12211.  (a) (1) Except as provided in paragraph (2), a state
agency shall report annually to the board its progress in meeting the
recycled product purchasing requirements using the SABRC report
format provided by the Department of Resources Recycling and
Recovery.
   (2) The reporting requirement in paragraph (1) does not apply to
the Department of Forestry and Fire Protection.
   (b) On or before October 31 of each year, the department shall
provide to the Department of Resources Recycling and Recovery the
following information:
   (1) A list, by category, of individual reportable recycled
products, materials, goods, and supplies that were available for
purchase by state agencies from a statewide-use contract, agreement,
or schedule during the previous fiscal year.
   (2) A list, by category, of all reportable products, materials,
goods, and supplies that were available for purchase by state
agencies from a statewide-use contract, agreement, or schedule,
including contract, agreement, or schedule tracking numbers, during
the previous fiscal year.
  SEC. 10.  Section 4124 of the Public Resources Code is repealed.
  SEC. 11.  Section 4515 of the Public Resources Code is repealed.
  SEC. 12.  Section 4785 of the Public Resources Code is amended to
read:
   4785.  The department shall from time to time prepare reports
setting forth data as to experiments conducted and the department's
findings and conclusions with reference to those experiments and
submit these reports to the board for its guidance and assistance in
determining the policy to be followed by the board with reference to
range and forage lands.
  SEC. 13.  Section 5018.1 of the Public Resources Code is amended to
read:
   5018.1.  (a) Notwithstanding any other law, the Department of
Finance may delegate to the department the right to exercise the same
authority granted to the Division of the State Architect and the
Real Estate Services Division in the Department of General Services,
to plan, design, construct, and administer contracts and professional
services for legislatively approved capital outlay projects.
   (b) Any right afforded to the department pursuant to subdivision
(a) to exercise project planning, design, construction, and
administration of contracts and professional services may be revoked,
in whole or in part, by the Department of Finance at any time prior
to January 1, 2019.
   (c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
  SEC. 14.  Section 5080.18 of the Public Resources Code is amended
to read:
   5080.18.  All concession contracts entered into pursuant to this
article shall contain, but are not limited to, all of the following
provisions:
   (a) (1) The maximum term shall be 10 years, except that a term of
more than 10 years may be provided if the director determines that
the longer term is necessary to allow the concessionaire to amortize
improvements made by the concessionaire, to facilitate the full
utilization of a structure that is scheduled by the department for
replacement or redevelopment, or to serve the best interests of the
state. The term shall not exceed 20 years without specific
authorization by statute.
   (2)  The maximum term shall be 50 years if the concession contract
is for the construction, development, and operation of multiple-unit
lodging facilities equipped with full amenities, including plumbing
and electrical, that is anticipated to exceed an initial cost of one
million five hundred thousand dollars ($1,500,000) in capital
improvements in order to begin operation. The term for a concession
contract described in this paragraph shall not exceed 50 years
without specific authorization by statute.
   (3) Notwithstanding paragraph (1), a concession agreement at Will
Rogers State Beach executed prior to December 31, 1997, including,
but not limited to, an agreement signed pursuant to Section 25907 of
the Government Code, may be extended to exceed 20 years in total
length without specific authorization by statute, upon approval by
the director and pursuant to a determination by the director that the
longer term is necessary to allow the concessionaire to amortize
improvements made by the concessionaire that are anticipated to
exceed one million five hundred thousand dollars ($1,500,000) in
capital improvements. Any extensions granted pursuant to this
paragraph shall not be for more than 15 years.
   (b) Every concessionaire shall submit to the department all sales
and use tax returns.
   (c) Every concession shall be subject to audit by the department.
   (d) A performance bond shall be obtained and maintained by the
concessionaire. In lieu of a bond, the concessionaire may substitute
a deposit of funds acceptable to the department. Interest on the
deposit shall accrue to the concessionaire.
   (e) The concessionaire shall obtain and maintain in force at all
times a policy of liability insurance in an amount adequate for the
nature and extent of public usage of the concession and naming the
state as an additional insured.
   (f) Any discrimination by the concessionaire or his or her agents
or employees against any person because of the marital status or
ancestry of that person or any characteristic listed or defined in
Section 11135 of the Government Code is prohibited.
   (g) To be effective, any modification of the concession contract
shall be evidenced in writing.
   (h) Whenever a concession contract is terminated for substantial
breach, there shall be no obligation on the part of the state to
purchase any improvements made by the concessionaire.
  SEC. 15.  Section 5096.650 of the Public Resources Code is amended
to read:
   5096.650.  The one billion two hundred seventy-five million
dollars ($1,275,000,000) allocated pursuant to subdivision (c) of
Section 5096.610 shall be available for the acquisition and
development of land, air, and water resources in accordance with the
following schedule:
   (a) Notwithstanding Section 13340 of the Government Code, the sum
of three hundred million dollars ($300,000,000) is continuously
appropriated to the Wildlife Conservation Board for the acquisition,
development, rehabilitation, restoration, and protection of habitat
that promotes the recovery of threatened and endangered species, that
provides corridors linking separate habitat areas to prevent habitat
fragmentation, and that protects significant natural landscapes and
ecosystems such as old growth redwoods and oak woodlands and other
significant habitat areas; and for grants and related state
administrative costs pursuant to the Wildlife Conservation Law of
1947 (Chapter 4 (commencing with Section 1300) of Division 2 of the
Fish and Game Code). Funds scheduled in this subdivision may be used
to prepare management plans for properties acquired in fee by the
Wildlife Conservation Board.
   (b) The sum of four hundred forty-five million dollars
($445,000,000) to the conservancies in accordance with the particular
provisions of the statute creating each conservancy for the
acquisition, development, rehabilitation, restoration, and protection
of land and water resources; for grants and state administrative
costs; and in accordance with the following schedule:
(1)   To the State Coastal             $200,000,000
       Conservancy ....................
(2)   To the California Tahoe          $ 40,000,000
       Conservancy ....................
(3)   To the Santa Monica Mountains    $ 40,000,000
       Conservancy ....................
(4)   To the Coachella Valley          $ 20,000,000
       Mountains Conservancy ..........
(5)   To the San Joaquin River         $ 25,000,000
       Conservancy ....................
       To the San Gabriel and Lower
(6)   Los Angeles Rivers               $ 40,000,000
       and Mountains Conservancy ......
(7)   To the Baldwin Hills             $ 40,000,000
       Conservancy ....................
       To the San Francisco Bay Area
(8)   Conservancy                      $ 40,000,000
       Program ........................


   (c) The sum of three hundred seventy-five million dollars
($375,000,000) shall be available for grants to public agencies and
nonprofit organizations for acquisition, development, restoration,
and associated planning, permitting, and administrative costs for the
protection and restoration of water resources in accordance with the
following schedule:
   (1) The sum of seventy-five million dollars ($75,000,000) to the
secretary for the acquisition and development of river parkways and
for protecting urban streams. The secretary shall make funds
available in accordance with Sections 7048 and 78682.2 of the Water
Code, and pursuant to any other applicable statutory authorization.
Not less than five million dollars ($5,000,000) shall be available
for grants for the urban streams program, pursuant to Section 7048 of
the Water Code.
   (2) The sum of three hundred million dollars ($300,000,000) shall
be available for the purposes of clean beaches, watershed protection,
and water quality projects to protect beaches, coastal waters,
rivers, lakes, and streams from contaminants, pollution, and other
environmental threats.
   (d) (1) The sum of fifty million dollars ($50,000,000) to the
State Air Resources Board for grants to air districts pursuant to
Chapter 9 (commencing with Section 44275) of Part 5 of Division 26 of
the Health and Safety Code for projects that reduce air pollution
that affects air quality in state and local park and recreation
areas. Eligible projects shall meet the requirements of Section 16727
of the Government Code and shall be consistent with Section 43023.5
of the Health and Safety Code, if Assembly Bill 1390 of the 2001-02
Regular Session of the Legislature is enacted on or before January 1,
2003. Each air district shall be eligible for grants of not less
than two hundred thousand dollars ($200,000). Not more than 5 percent
of the funds allocated to an air district may be used to cover the
costs associated with implementing the grant program.
   (2) Allocations of funds pursuant to this subdivision to the
Lower-Emission School Bus Program shall be prioritized to retrofit or
replace the most polluting schoolbuses in small air districts first
and then to medium air districts as defined by the State Air
Resources Board. Each allocation for this purpose shall provide
enough funding for at least one project to be implemented pursuant to
the Lower-Emission School Bus Program adopted by the State Air
Resources Board. If a local air district has unspent funds within six
months of the expenditure deadline, the air district shall work with
the State Air Resources Board to transfer funds to an alternative
air district with existing demand.
   (e) The sum of twenty million dollars ($20,000,000) to the
California Conservation Corps for the acquisition, development,
restoration, and rehabilitation of land and water resources, and for
grants and state administrative costs in accordance with the
following schedule:
   (1) The sum of five million dollars ($5,000,000) shall be
available for resource conservation activities.
   (2) The sum of fifteen million dollars ($15,000,000) shall be
available for grants to local conservation corps for acquisition and
development of facilities to support local conservation corps
programs.
   (f) The sum of seventy-five million dollars ($75,000,000) shall be
available for grants for the preservation of agricultural lands and
grazing lands, including oak woodlands and grasslands.
   (g) The sum of ten million dollars ($10,000,000) to the Department
of Forestry and Fire Protection for grants for urban forestry
programs pursuant to the California Urban Forestry Act of 1978
(Chapter 2 (commencing with Section 4799.06) of Part 2.5 of Division
1).
  SEC. 16.  Section 14538 of the Public Resources Code is amended to
read:
   14538.  (a) (1) The department shall certify the operators of
recycling centers pursuant to this section.
   (2) The department shall review whether an application for
certification or renewal is complete within 30 working days of
receipt, including compliance with subdivision (c). If the department
deems an application complete, the department shall approve or deny
the application no later than 60 calendar days after the date when
the application was deemed complete.
    (b) The director shall adopt, by regulation, a procedure for the
certification of recycling centers, including standards and
requirements for certification. These regulations shall require that
all information be submitted to the department under penalty of
perjury. A recycling center shall meet all of the standards and
requirements contained in the regulations for certification. The
regulations shall require, but shall not be limited to requiring,
that all of the following conditions be met for certification:
   (1) The operator of the recycling center demonstrates, to the
satisfaction of the department, that the operator will operate in
accordance with this division.
   (2) If one or more certified entities have operated at the same
location within the past five years, the operations at the location
of the recycling center exhibit, to the satisfaction of the
department, a pattern of operation in compliance with the
requirements of this division and regulations adopted pursuant to
this division.
   (3) The operator of the recycling center notifies the department
promptly of any material change in the nature of his or her
operations which conflicts with information submitted in the operator'
s application for certification.
                                              (c) (1) On and after
January 1, 2014, an applicant for certification as a recycling
center, and a recycling center applying for renewal of a
certification, shall complete the precertification training program
required by this subdivision and meet all other qualification
requirements prescribed by the department, which may include, but are
not limited to, requiring the applicant to obtain a passing score on
an examination administered by the department.
   (2) The department may use staff or industry experts, or may seek
expertise available in other state agencies, to provide the training
program required by this subdivision, which shall include providing
technical assistance to better prepare recycling centers for
successful participation in this division, thereby reducing the
potential for errors, fraud, or other activities that compromise the
integrity of the implementation of this division.
   (d) A certified recycling center shall comply with all of the
following requirements for operation:
   (1) The operator of the recycling center shall not pay a refund
value for, or receive a refund value from any processor for, any food
or drink packaging material or any beverage container or other
product that does not have a refund value established pursuant to
Section 14560.
   (2) The operator of a recycling center shall take those actions
that satisfy the department to prevent the payment of a refund value
for any food or drink packaging material or any beverage container or
other product that does not have a refund value established pursuant
to Section 14560.
   (3) Unless exempted pursuant to subdivision (b) of Section 14572,
a certified recycling center shall accept, and pay at least the
refund value for, all empty beverage containers, regardless of type.
   (4) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees to a noncertified
recycler.
   (5) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees on empty beverage
containers or other containers that the certified recycling center
knew, or should have known, were coming into the state from out of
the state.
   (6) A certified recycling center shall not claim refund values,
processing payments, or administrative fees on empty beverage
containers that the certified recycling center knew, or should have
known, were received from noncertified recyclers or on beverage
containers that the certified recycling center knew, or should have
known, come from out of the state.
   (7) A certified recycling center shall prepare and maintain the
following documents involving empty beverage containers, as specified
by the department by regulation:
   (A) Shipping reports that are required to be prepared by the
recycling center, or that are required to be obtained from other
recycling centers.
   (B) Consumer transaction receipts.
   (C) Consumer transaction logs.
   (D) Rejected container receipts on materials subject to this
division.
   (E) Receipts for transactions with beverage manufacturers on
materials subject to this division.
   (F) Receipts for transactions with beverage distributors on
materials subject to this division.
   (G) Documents authorizing the recycling center to cancel empty
beverage containers.
   (H) Weight tickets.
   (8) In addition to the requirements of paragraph (7), a certified
recycling center shall cooperate with the department and make
available its records of scrap transactions when the review of these
records is necessary for an audit or investigation by the department.

   (e) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, payments made
from the fund to the certified recycling center pursuant to Section
14573.5 that are based on the documents specified in paragraph (7),
that are not prepared or maintained in compliance with the department'
s regulations, and that do not allow the department to verify claims
for program payments.
   (f) The department may certify a recycling center that will
operate less than 30 hours a week, as specified in paragraph (2) of
subdivision (b) of Section 14571.
  SEC. 17.  Section 14539 of the Public Resources Code is amended to
read:
   14539.  (a) (1) The department shall certify processors pursuant
to this section.
   (2) The department shall review whether an application for
certification or renewal is complete within 30 working days of
receipt, including compliance with subdivision (c). If the department
deems an application complete, the department shall approve or deny
the application no later than 60 calendar days after the date when
the application was deemed complete.
   (b) The director shall adopt, by regulation, requirements and
standards for certification. The regulations shall require, but shall
not be limited to requiring, that all of the following conditions be
met for certification:
   (1) The processor demonstrates to the satisfaction of the
department that the processor will operate in accordance with this
division.
   (2) If one or more certified entities have operated at the same
location within the past five years, the operations at the location
of the processor exhibit, to the satisfaction of the department, a
pattern of operation in compliance with the requirements of this
division and regulations adopted pursuant to this division.
   (3) The processor notifies the department promptly of any material
change in the nature of the processor's operations that conflicts
with the information submitted in the operator's application for
certification.
   (c) (1) On and after January 1, 2014, an applicant for
certification as a processor and a processor applying for renewal of
a certification shall complete the precertification training program
required by this subdivision and meet all other qualification
requirements prescribed by the department, which may include, but are
not limited to, requiring the applicant to obtain a passing score on
an examination administered by the department.
   (2) The department may use staff or industry experts, or may seek
expertise available in other state agencies, to provide the training
program required by this subdivision, which shall include providing
technical assistance to better prepare processors for successful
participation in this division, thereby reducing the potential for
errors, fraud, or other activities which compromise the integrity of
the implementation of this division.
   (d) A certified processor shall comply with all of the following
requirements for operation:
   (1) The processor shall not pay a refund value for, or receive a
refund value from the department for, any food or drink packaging
material or any beverage container or other product that does not
have a refund value established pursuant to Section 14560.
   (2) The processor shall take those actions that satisfy the
department to prevent the payment of a refund value for any food or
drink packaging material or any beverage container or other product
that does not have a refund value established pursuant to Section
14560.
   (3) Unless exempted pursuant to subdivision (b) of Section 14572,
the processor shall accept, and pay at least the refund value for,
all empty beverage containers, regardless of type, for which the
processor is certified.
   (4) A processor shall not pay any refund values, processing
payments, or administrative fees to a noncertified recycler. A
processor may pay refund values, processing payments, or
administrative fees to any entity that is identified by the
department on its list of certified recycling centers.
   (5) A processor shall not pay any refund values, processing
payments, or administrative fees on empty beverage containers or
other containers that the processor knew, or should have known, were
coming into the state from out of the state.
   (6) A processor shall not claim refund values, processing
payments, or administrative fees on empty beverage containers that
the processor knew, or should have known, were received from
noncertified recyclers or on beverage containers that the processor
knew, or should have known, come from out of the state. A processor
may claim refund values, processing payments, or administrative fees
on any empty beverage container that does not come from out of the
state and that is received from any entity that is identified by the
department on its list of certified recycling centers.
   (7) A processor shall take the actions necessary and approved by
the department to cancel containers to render them unfit for
redemption.
   (8) A processor shall prepare or maintain the following documents
involving empty beverage containers, as specified by the department
by regulation:
   (A) Shipping reports that are required to be prepared by the
processor or that are required to be obtained from recycling centers.

   (B) Processor invoice reports.
   (C) Cancellation verification documents.
   (D) Documents authorizing recycling centers to cancel empty
beverage containers.
   (E) Processor-to-processor transaction receipts.
   (F) Rejected container receipts on materials subject to this
division.
   (G) Receipts for transactions with beverage manufacturers on
materials subject to this division.
   (H) Receipts for transactions with distributors on materials
subject to this division.
   (I) Weight tickets.
   (9) In addition to the requirements of paragraph (7), a processor
shall cooperate with the department and make available its records of
scrap transactions when the review of these records is necessary for
an audit or investigation by the department.
   (e) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, any payments
made by the department to the processor pursuant to Section 14573
that are based on the documents specified in paragraph (8) of
subdivision (b) of this section, that are not prepared or maintained
in compliance with the department's regulations, and that do not
allow the department to verify claims for program payments.
  SEC. 18.  Section 14549.5 of the Public Resources Code is amended
to read:
   14549.5.  On or before April 1, 2004, and annually thereafter, or
more frequently as determined to be necessary by the department, the
department shall review and, if necessary in order to ensure payment
of the most accurate commingled rate feasible, recalculate commingled
rates paid for beverage containers and postfilled containers paid to
curbside recycling programs and collection programs. Prior to
recalculating a commingled rate pursuant to this section, the
department shall do all of the following:
   (a) Consult with private and public operators of curbside
recycling programs and collection programs concerning the size of the
statewide sample, appropriate sampling methodologies, and
alternatives to exclusive reliance on a statewide commingled rate.
   (b) At least 60 days prior to the effective date of any new
commingled rate, hold a public hearing, after giving notice, to make
available to the public and affected parties the department's review
and any proposed recalculations of the commingled rate.
   (c) At least 60 days prior to the effective date of any new
commingled rate, and upon the request of any party, make available
documentation or studies which were prepared as part of the
department's review of a commingled rate.
   (d) (1) Notwithstanding this division, the department may
calculate a curbside recycling program commingled rate pursuant to
this subdivision for bimetal containers and a combined commingled
rate for all plastic beverage containers displaying the resin
identification code "3," "4," "5," "6," or "7" pursuant to Section
18015.
   (2) The department may enter into a contract for the services
required to implement the amendments to this section made by Chapter
753 of the Statutes of 2003. The department may not expend more than
two hundred fifty thousand dollars ($250,000) for each year of the
contract. The contract shall be paid only from revenues derived from
redemption payments and processing fees paid on plastic beverage
containers displaying the resin identification code "3," "4," "5,"
"6," or "7" pursuant to Section 18015. If the department determines
that insufficient funds will be available from these revenues, after
refund values are paid to processors and the reduction is made in the
processing fee pursuant to subdivision (e) of Section 14575 for
these containers, the department may determine not to calculate a
commingled rate pursuant to this subdivision.
  SEC. 19.  Section 14553 of the Public Resources Code is amended to
read:
   14553.  (a) Except as provided in subdivision (b), all reports,
claims, and other information required pursuant to this division and
submitted to the department shall be complete, legible, and accurate,
as determined by the department by regulation, and shall be signed,
by an officer, director, managing employee, or owner of the certified
recycling center, processor, distributor, beverage manufacturer,
container manufacturer, or other entity.
   (b) Notwithstanding subdivision (a), a person submitting the
reports, claims, and other information specified in subdivision (a)
shall use the Division of Recycling Integrated Information System
(DORIIS) or other system designated by the department for reporting,
making, or claiming payments, or providing other information required
pursuant to this division.
   (c) The department may inspect the operations, processes, and
records of an entity required to submit a report to the department
pursuant to this division to determine the accuracy of the report and
compliance with the requirements of this division.
   (d) (1) A violation of this section is subject to the penalties
specified in Section 14591.1.
   (2) The department may take an enforcement action against a
certified recycling center or processor that fails to comply with
this section, including, but not limited to, imposing penalties,
denying claims for payment, or terminating the certification of the
certified recycling center or processor.
  SEC. 20.  Section 14572 of the Public Resources Code is amended to
read:
   14572.  (a) (1) Except as provided in subdivision (b), a certified
recycling center shall accept from any consumer or dropoff or
collection program any empty beverage container, and shall pay to the
consumer or dropoff or collection program the refund value of the
beverage container.
   (2) Except as provided in paragraph (3), the recycling center may
pay the refund value based on the weight of returned containers.
   (3) On and after September 1, 2013, for beverage containers
redeemed by consumers, a certified recycling center shall pay the
refund value using the applicable segregated rate, as defined in
paragraph (43) of subsection (a) of Section 2000 of Title 14 of the
California Code of Regulations, as that section read on September 1,
2013, which shall be based on the weight of the redeemed beverage
containers.
   (b) Any recycling center or processor that was in existence on
January 1, 1986, and that refused, as of January 1, 1986, to accept
at a particular location a certain type of empty beverage container
may continue to refuse to accept at the location the type or types of
empty beverage containers that the recycling center or processor
refused to accept as of January 1, 1986. A certified recycling center
that refuses, pursuant to this subdivision, to accept a certain type
or types of empty beverage containers is not eligible to receive
handling fees unless the center agrees to accept all types of empty
beverage containers and is a supermarket site. This subdivision does
not preclude the certified recycling center from receiving a handling
fee for beverage containers redeemed at supermarket sites that do
accept all types of containers.
   (c) The department shall develop procedures by which recycling
centers and processors that meet the criteria of subdivision (b) may
recertify to change the material types accepted.
   (d) (1) Only a certified recycling center may pay the refund value
to consumers or dropoff or collection programs. A person shall not
pay a noncertified recycler for empty beverage containers an amount
that exceeds the current scrap value for each container type, which
shall be determined in the following manner:
   (A) For a plastic or glass beverage container, the current scrap
value shall be determined by the department.
   (B) For an aluminum beverage container, the current scrap value
shall be not greater than the amount paid to the processor for that
aluminum beverage container, on the date the container was purchased,
by the location of end use, as defined in the regulations of the
department.
   (2) A person shall not receive or retain, for empty beverage
containers that come from out of state, any refund values, processing
payments, or administrative fees for which a claim is made to the
department against the fund.
   (3) Paragraph (1) does not affect curbside programs under contract
with cities or counties.
  SEC. 21.  Section 14591 of the Public Resources Code is amended to
read:
   14591.  (a) Except as provided in subdivision (b), in addition to
any other applicable civil or criminal penalties, a person convicted
of a violation of this division, or a regulation adopted pursuant to
this division, is guilty of an infraction, which is punishable by a
fine of one hundred dollars ($100) for each initial separate
violation and not more than one thousand dollars ($1,000) for each
subsequent separate violation per day.
   (b) (1) Every person who, with intent to defraud, knowingly takes
any of the following actions is guilty of a crime:
   (A) Submits a false or fraudulent claim for payment pursuant to
Section 14573 or 14573.5.
   (B) Fails to accurately report the number of beverage containers
sold, as required by subdivision (b) of Section 14550.
   (C) Fails to make payments as required by Section 14574.
   (D) Redeems out-of-state containers, rejected containers, line
breakage, or containers that have already been redeemed.
   (E) Returns redeemed containers to the California marketplace for
redemption.
   (F) Brings out-of-state containers, rejected containers, or line
breakage to the California marketplace for redemption.
   (G) Submits a false or fraudulent claim for handling fee payments
pursuant to Section 14585.
   (2) If the money obtained or withheld pursuant to paragraph (1)
exceeds nine hundred fifty dollars ($950), a person convicted of a
crime pursuant to paragraph (1) is subject to punishment by
imprisonment in a county jail for not more than one year, by a fine
not exceeding ten thousand dollars ($10,000), or by both that fine
and imprisonment, or by imprisonment pursuant to subdivision (h) of
Section 1170 of the Penal Code for 16 months, 2 years, or 3 years, by
a fine not exceeding twenty-five thousand dollars ($25,000) or twice
the late or unmade payments plus interest, whichever is greater, or
by both that fine and imprisonment. If the money obtained or withheld
pursuant to paragraph (1) equals, or is less than, nine hundred
fifty dollars ($950), the person is subject to punishment by
imprisonment in a county jail for not more than six months, by a fine
not exceeding one thousand dollars ($1,000), or by both that fine
and imprisonment.
   (c)  For purposes of this section and Chapter 8.5 (commencing with
Section 14595), "line breakage" and "rejected container" have the
same meanings as defined in the regulations adopted or amended by the
department pursuant to this division.
  SEC. 22.  Section 25711.5 is added to the Public Resources Code, to
read:
   25711.5.  In administering moneys in the fund for research,
development, and demonstration programs under this chapter, the
commission shall develop and implement the Electric Program
Investment Charge (EPIC) program to do all of the following:
   (a) Award funds for projects that will benefit electricity
ratepayers and lead to technological advancement and breakthroughs to
overcome the barriers that prevent the achievement of the state's
statutory energy goals and that result in a portfolio of projects
that is strategically focused and sufficiently narrow to make
advancement on the most significant technological challenges that
shall include, but not be limited to, energy storage, renewable
energy and its integration into the electrical grid, energy
efficiency, integration of electric vehicles into the electrical
grid, and accurately forecasting the availability of renewable energy
for integration into the grid.
   (b) In consultation with the Treasurer, establish terms that shall
be imposed as a condition to receipt of funding for the state to
accrue any intellectual property interest or royalties that may
derive from projects funded by the EPIC program. The commission, when
determining if imposition of the proposed terms is appropriate,
shall balance the potential benefit to the state from those terms and
the effect those terms may have on the state achieving its statutory
energy goals. The commission shall require each reward recipient, as
a condition of receiving moneys pursuant to this chapter, to agree
to any terms the commission determines are appropriate for the state
to accrue any intellectual property interest or royalties that may
derive from projects funded by the EPIC program.
   (c) Require each applicant to report how the proposed project may
lead to technological advancement and potential breakthroughs to
overcome barriers to achieving the state's statutory energy goals.
   (d) Establish a process for tracking the progress and outcomes of
each funded project, including an accounting of the amount of funds
spent by program administrators and individual grant recipients on
administrative and overhead costs and whether the project resulted in
any technological advancement or breakthrough to overcome barriers
to achieving the state's statutory energy goals.
   (e) Notwithstanding Section 10231.5 of the Government Code,
prepare and submit to the Legislature no later than April 30 of each
year 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 the amount of the award, a description of how the
project is thought to lead to technological advancement or
breakthroughs to overcome barriers to achieving the state's statutory
energy goals, and a description of why the project was selected.
   (2) A brief description of each project funded by the EPIC program
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.
   (3) A brief description of each project funded by the EPIC program
for which an award was made in the previous years but that is not
completed, including the name of the recipient and the amount of the
award, and a description of how the project will lead to
technological advancement or breakthroughs to overcome barriers to
achieving the state's statutory energy goals.
   (4) Identification of the award recipients that are
California-based entities, small businesses, or businesses owned by
women, minorities, or disabled veterans.
   (5) Identification of which awards were made through a competitive
bid, interagency agreement, or sole source method, and the action of
the Joint Legislative Budget Committee pursuant to paragraph (2) of
subdivision (g) for each award made through an interagency agreement
or sole source method.
   (6) Identification of the total amount of administrative and
overhead costs incurred for each project.
   (f) Establish requirements to minimize program administration and
overhead costs, including costs incurred by program administrators
and individual grant recipients. Each program administrator and grant
recipient, including a public entity, shall be required to justify
actual administration and overhead costs incurred, even if the total
costs incurred do not exceed a cap on those costs that the commission
may adopt.
   (g) (1) The commission shall use a sealed competitive bid as the
preferred method to solicit project applications and award funds
pursuant to the EPIC program.
   (2) (A) The commission may use a sole source or interagency
agreement method if the project cannot be described with sufficient
specificity so that bids can be evaluated against specifications and
criteria set forth in a solicitation for bid and if both of the
following conditions are met:
   (i) 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.
   (ii) The Joint Legislative Budget Committee either approves or
does not disapprove the proposed action within 60 days from the date
of notification required by clause (i).
   (B) It is the intent of the Legislature to enact this paragraph to
ensure legislative oversight for awards made on a sole source basis,
or through an interagency agreement.
   (3) Notwithstanding any other law, standard terms and conditions
that generally apply to contracts between the commission and any
entities, including state entities, do not automatically preclude the
award of moneys from the fund through the sealed competitive bid
method.
  SEC. 23.  Section 25711.7 is added to the Public Resources Code, to
read:
   25711.7.  (a) The Public Utilities Commission shall not require
the collection of funds pursuant to its Decision 12-05-037 (May 24,
2012), Phase 2 Decision Establishing Purposes and Governance for
Electric Program Investment Charge and Establishing Funding
Collections for 2013-2020, as corrected by Decision 12-07-001 (July
3, 2012), Order Correcting Error, and as modified by Decision
13-04-030 (April 18, 2013), Order Modifying Decision (D.) 12-05-037,
and Denying Rehearing of Decision, as Modified, in an annual amount
greater than the amount specified in those decisions.
   (b) This section does not modify, alter, or, in any way, affect
the operation of Section 25712.
  SEC. 24.  Section 25751 of the Public Resources Code is amended to
read:
   25751.  (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
   (b) The Emerging Renewable Resources Account is hereby established
within the Renewable Resources Trust Fund. Notwithstanding Section
13340 of the Government Code, the moneys in the account are hereby
continuously appropriated to the commission without regard to fiscal
years                                           for the following
purposes:
   (1) To close out the award of incentives for emerging technologies
in accordance with former Section 25744, as this law existed prior
to the enactment of the Budget Act of 2012, for which applications
had been approved before the enactment of the Budget Act of 2012.
   (2) To close out consumer education activities in accordance with
former Section 25746, as this law existed prior to the enactment of
the Budget Act of 2012.
   (3) To provide funding for the New Solar Homes Partnership
pursuant to paragraph (3) of subdivision (e) of Section 2851 of the
Public Utilities Code.
   (c) The Controller shall provide to the commission funds pursuant
to the continuous appropriation in, and for purposes specified in,
subdivision (b).
   (d) The Controller shall provide to the commission moneys from the
fund sufficient to satisfy all contract and grant awards that were
made by the commission pursuant to former Sections 25744 and 25746,
and Chapter 8.8 (commencing with Section 25780), as these laws
existed prior to the enactment of the Budget Act of 2012.
  SEC. 25.  Section 26052 of the Public Resources Code is amended to
read:
   26052.  "Applicant" means, for the purposes of Article 2
(commencing with Section 26060), a public agency as defined in
paragraph (3) of subdivision (c) of Section 5898.20 of the Streets
and Highways Code, or an entity administering a PACE loan program on
behalf of and with written consent of a public agency, and, for the
purposes of Article 3 (commencing with Section 26070), a financial
institution providing a loan pursuant to that chapter to finance the
installation of distributed generation renewable energy sources,
electric vehicle charging infrastructure, or energy or water
efficiency improvements.
  SEC. 26.  Section 26055 of the Public Resources Code is amended to
read:
   26055.  "PACE program" means a program established by an applicant
that is financed by the PACE bond or a PACE loan program regardless
of funding sources.
  SEC. 27.  Section 26060 of the Public Resources Code is amended to
read:
   26060.  (a) The authority shall develop and administer a PACE
Reserve program to reduce overall costs to the property owners of
PACE bonds issued by an applicant by providing a reserve of no more
than 10 percent of the initial principal amount of the PACE bond.
   (b) The authority shall develop and administer a PACE risk
mitigation program for PACE loans to increase their acceptance in the
marketplace and protect against the risk of default and foreclosure.

  SEC. 28.  Section 26062 of the Public Resources Code is amended to
read:
   26062.  An applicant shall submit to the authority an application
providing a detailed description of the PACE program, a detailed
description of the transactional activities associated with the PACE
bond issuance, including all transactional costs, information
regarding any credit enhancement or loan insurance associated with a
PACE loan program, and other information deemed necessary by the
authority.
  SEC. 29.  Section 26063 of the Public Resources Code is amended to
read:
   26063.  (a) In evaluating eligibility, the authority shall
consider whether the applicant's PACE program includes the following
conditions:
   (1) Loan recipients are legal owners of underlying property.
   (2) Loan recipients are current on mortgage and property tax
payments.
   (3) Loan recipients are not in default or in bankruptcy
proceedings.
   (4) Loans are for less than 10 percent of the value of the
property.
   (5) The property is within the geographical boundaries of the PACE
program.
   (6) The program offers financing for energy efficiency
improvements or electric vehicle charging infrastructure.
   (7) Improvements financed by the program follow applicable
standards of energy efficiency retrofit work, including any
guidelines adopted by the State Energy Resources Conservation and
Development Commission.
   (b) In evaluating an application, the authority shall consider all
of the following factors:
   (1) The use by the PACE program of best practices, adopted by the
authority, to qualify eligible properties for participation in
underwriting the PACE program.
   (2) The cost efficiency of the applicant's PACE program, including
bond issuance, credit enhancement, or loan insurance.
   (3) The projected number of jobs created by the PACE program.
   (4) The applicant's PACE program requirements for quality
assurance and consumer protection as related to achieving efficiency
and clean energy production.
   (5) The mechanisms by which savings produced by this program are
passed on to the property owners.
   (6) Any other factors deemed appropriate by the authority.
  SEC. 30.  Section 35600 of the Public Resources Code is amended to
read:
   35600.  (a) The Ocean Protection Council is established in state
government. The council consists of the Secretary of the Natural
Resources Agency, the Secretary for Environmental Protection, the
Chair of the State Lands Commission, and two members of the public
appointed by the Governor.
   (b) The two public members shall each serve a term of four years,
and may each be reappointed to one additional term. The public
members of the board shall be appointed on the basis of their
educational and professional qualifications and their general
knowledge of, interest in, and experience in the protection and
conservation of coastal waters and ocean ecosystems. One of the
public members shall have a scientific professional background and
experience in coastal and ocean ecosystems.
   (c) Except as provided in this section, members of the council
shall serve without compensation. A member shall be reimbursed for
actual and necessary expenses incurred in the performance of his or
her duties, and in addition shall be compensated at one hundred
dollars ($100) for each day during which the member is engaged in the
performance of official duties of the council. Payment for actual
and necessary expenses shall be paid only to the extent that those
expenses are not provided or payable by another public agency. The
total number of days for which a member shall be compensated may not
exceed 25 days in any one fiscal year.
  SEC. 31.  Section 35605 of the Public Resources Code is amended to
read:
   35605.  The Secretary of the Natural Resources Agency shall serve
as the chairperson of the council, and the Secretary for
Environmental Protection shall serve as the vice chairperson of the
council. The Assistant Secretary for Coastal Matters at the Natural
Resources Agency shall be designated as the Deputy Secretary of the
Natural Resources Agency for Ocean and Coastal Policy, and the deputy
secretary shall also serve as the executive director for the
council.
  SEC. 32.  Section 35625 of the Public Resources Code is amended to
read:
   35625.  (a) Under the direction of the Secretary of the Natural
Resources Agency, the council shall administer its affairs, and
provide the staff services that the council needs to carry out this
division, including, but not limited to, both of the following:
   (1) Administering grants and expenditures authorized by the
council from the fund or other sources, including, but not limited
to, block grants from other state boards, commissions, or
departments.
   (2) Arranging meetings, agendas, and other administrative
functions in support of the council.
   (b) The Legislature may make appropriations to be used for the
purposes of this division directly to the Secretary of the Natural
Resources Agency, for expenditures authorized by the council. If an
expenditure has been approved by the council for the purposes of this
division, approval of the secretary is not required, except in the
case of block grants provided by the council to be administered by
the secretary.
   (c) Any bond funds received by the State Coastal Conservancy, on
or before July 1, 2013, which authorized the use of funds for council
programs, shall be transferred to the Natural Resources Agency for
use for those programs.
   (d) (1) The Legislature finds and declares that, on the effective
date of the act adding this subdivision during the 2013-14 Regular
Session, various contracts and grants will be pending or remain
subject to management and control by the State Coastal Conservancy on
behalf of the council. On and after that date, the Secretary of the
Natural Resources Agency is hereby designated as the legal successor
to the State Coastal Conservancy, and the Secretary of the Natural
Resources Agency shall assume management and control of those
contracts and grants and shall have all of the same powers and duties
as the State Coastal Conservancy.
   (2) In addition to the powers and duties described in paragraph
(1), on and after the effective date of the act adding this
subdivision during the 2013-14 Regular Session, the Secretary of the
Natural Resources Agency shall have the following powers and duties
on behalf of the council:
   (A) The management of all contracts and grants, including the
completion, modification, and cancellation of those contracts and
grants in accordance with existing law.
   (B) The negotiation and settlement of claims relating to contracts
and grants.
   (C) Responsibility for the completion, maintenance, and disposal
of any records relating to the transfer of responsibilities from the
State Coastal Conservancy to the Natural Resources Agency.
  SEC. 33.  Section 42977 of the Public Resources Code is amended to
read:
   42977.  (a) The carpet stewardship organization submitting a
carpet stewardship plan shall pay the department a quarterly
administrative fee. The department shall set the fee at an amount
that, when paid by every carpet stewardship organization that submits
a carpet stewardship plan, is adequate to cover the department's
full costs of administering and enforcing this chapter, including any
program development costs or regulatory costs incurred by the
department prior to carpet stewardship plans being submitted. The
department may establish a variable fee based on relevant factors,
including, but not limited to, the portion of carpets sold in the
state by members of the organization compared to the total amount of
carpet sold in the state by all organizations submitting a carpet
stewardship plan.
   (b) The total amount of fees collected annually pursuant to this
section shall not exceed the amount necessary to recover costs
incurred by the department in connection with the administration and
enforcement of the requirements of this chapter.
   (c)  The department shall identify the direct development or
regulatory costs it incurs pursuant to this chapter prior to the
submittal of a carpet stewardship plan and shall establish a fee in
an amount adequate to cover those costs, which shall be paid by a
carpet stewardship organization that submits a carpet stewardship
plan. The fee established pursuant to this subdivision shall be paid
pursuant to the schedule specified in subdivision (d).
   (d) A carpet stewardship organization subject to this section
shall pay a quarterly fee to the department to cover the
administrative and enforcement costs of the requirements of this
chapter pursuant to subdivision (a) on or before July 1, 2012, and
every three months thereafter and the applicable portion of the fee
pursuant to subdivision (c) on July 1, 2012, and every three months
thereafter through July 1, 2014. Each year after the initial payment,
the total amount of the administrative fees paid for a calendar year
may not exceed 5 percent of the aggregate assessments collected for
the preceding calendar year.
   (e) The department shall deposit the fees collected pursuant to
this section into the Carpet Stewardship Account created pursuant to
Section 42977.1.
  SEC. 34.  Section 48704 of the Public Resources Code is amended to
read:
   48704.  (a) The department shall review the plan within 90 days of
receipt, and make a determination whether or not to approve the
plan. The department shall approve the plan if it provides for the
establishment of a paint stewardship program that meets the
requirements of Section 48703.
   (b) (1) The approved plan shall be a public record, except that
financial, production, or sales data reported to the department by a
manufacturer or the stewardship organization is not a public record
under the California Public Records Act, as described in Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code and shall not be open to public inspection.
   (2) Notwithstanding paragraph (1), the department may release a
summary form of financial, production, or sales data if it does not
disclose financial, production, or sales data of a manufacturer or
stewardship organization.
   (c) On or before July 1, 2012, or three months after a plan is
approved pursuant to subdivision (a), whichever date is later, the
manufacturer or stewardship organization shall implement the
architectural paint stewardship program described in the approved
plan.
   (d) The department shall enforce this chapter.
   (e) (1) The stewardship organization shall pay the department a
quarterly administrative fee pursuant to paragraph (2).
   (2) The department shall impose fees in an amount that is
sufficient to cover the full administrative and enforcement costs of
the requirements of this chapter, including any program development
costs or regulatory costs incurred by the department prior to the
submittal of the stewardship plans. The stewardship organization
shall pay the fee on or before the last day of the month following
the end of each quarter. Fee revenues collected under this section
shall only be used to administer and enforce this chapter.
   (f) (1) A civil penalty may be administratively imposed by the
department on any person who violates this chapter in an amount of up
to one thousand dollars ($1,000) per violation per day.
   (2) A person who intentionally, knowingly, or negligently violates
this chapter may be assessed a civil penalty by the department of up
to ten thousand dollars ($10,000) per violation per day.
  SEC. 35.  The Legislature hereby finds and declares all of the
following:
   (a) Environmental literacy enhances a citizen's ability to make
informed decisions with an understanding that humans depend on
natural systems and human actions influence natural systems in both
beneficial and detrimental ways.
   (b) Environmentally literate citizens are better able to make wise
individual and collective decisions to conserve natural resources
and protect environmental and human health.
   (c) An environmentally literate citizenry is essential to
confronting and overcoming the environmental challenges of the 21st
century.
   (d) An environmentally literate citizenry, consisting of
technological innovators, entrepreneurs, scientists, and engineers,
as well as environmentally conscientious consumers, supports a
vibrant state economy and drives California's role as a leader in the
emerging global green marketplace.
   (e) A model environmental curriculum, also known as the Education
and the Environment Curriculum (curriculum) was developed by the
California Environmental Protection Agency, in cooperation with the
State Department of Education and the Natural Resources Agency, to
increase environmental literacy among pupils in kindergarten and
grades 1 to 12, inclusive.
   (f) The curriculum is the first environment-based curriculum of
its kind in the nation to receive State Board of Education approval.
   (g) There are many benefits of enhanced environmental literacy,
and the curriculum materials, along with training and support, should
be made readily available to any educator in California who wishes
to teach the curriculum.
   (h) To achieve this goal, the Department of Resources Recycling
and Recovery should collaborate across agencies and disciplines,
including, but not limited to, the California Environmental
Protection Agency, the State Department of Education, and the Natural
Resources Agency.
   (i) The state should seek to develop strong partnerships with the
private sector, including nonprofit organizations, associations,
businesses, and private entities, in order to support use of the
curriculum and increase environmental literacy.
  SEC. 36.  Section 71300 of the Public Resources Code is amended to
read:
   71300.  (a) For purposes of this part, the following definitions
shall apply:
   (1) "Department" means the Department of Resources Recycling and
Recovery.
   (2) "Office" means the Office of Education and the Environment of
the Department of Resources Recycling and Recovery, as established
pursuant to this section.
   (3) "Program" means the statewide environmental education program
prescribed in this part.
   (b) The Office of Education and the Environment previously
established in the California Environmental Protection Agency is
hereby established in the Department of Resources Recycling and
Recovery. The office shall dedicate its effort to implementing the
statewide environmental education program prescribed pursuant to this
part, including the integrated waste educational requirements
specified in paragraph (9) of subdivision (b) of Section 71301. The
office, through staffing and resources, shall give a high priority to
implementing the statewide environmental education program.
   (c) The office, under the direction of the department, in
cooperation with the State Department of Education and the State
Board of Education, shall develop and implement a unified education
strategy on the environment for elementary and secondary schools in
the state. The office shall develop a unified education strategy to
do all of the following:
   (1) Coordinate instructional resources and strategies for
providing active pupil participation with onsite conservation
efforts.
   (2) Promote service-learning opportunities between schools and
local communities.
   (3) Assess the impact to participating pupils of the unified
education strategy on pupil achievement and resource conservation.
   (d) The State Department of Education and the State Board of
Education, in cooperation with the department, shall develop and
implement to the extent feasible, a teacher training and
implementation plan, to guide the implementation of the unified
education strategy, for the education of pupils, faculty, and
administrators on the importance of integrating environmental
concepts and programs in schools throughout the state. The strategy
shall project the phased implementation of elementary, middle, and
high school programs.
   (e) In implementing this part, the office may hold public meetings
to receive and respond to comments from affected state agencies,
stakeholders, and the public regarding the development of resources
and materials pursuant to this part.
   (f) In implementing this part, the office shall coordinate with
other agencies and groups with expertise in education and the
environment.
   (g) Any instructional materials developed pursuant to this part
shall be subject to the requirements of Chapter 1 (commencing with
Section 60000) of Part 33 of Division 4 of Title 2 of the Education
Code, including, but not limited to, reviews for legal and social
compliance before the materials may be used in elementary or
secondary public schools.
  SEC. 37.  Section 71301 of the Public Resources Code is amended to
read:
   71301.  (a) As part of the unified education strategy specified in
subdivision (c) of Section 71300, the office, in cooperation with
the Secretary for Environmental Protection, the Natural Resources
Agency, the State Department of Education, and the State Board of
Education, shall develop education principles for the environment for
elementary and secondary school pupils. The principles may be
updated every four years beginning July 1, 2008. The principles shall
be aligned to the academic content standards adopted by the State
Board of Education pursuant to Section 60605 of the Education Code.
The principles shall be used to do all of the following:
   (1) To direct state agencies that include environmental education
components for elementary and secondary education in regulatory
decisions or enforcement actions.
   (2) To align state agency environmental education programs and
materials that are developed for elementary and secondary education.
   (b) The education principles for the environment shall include,
but not be limited to, concepts relating to the following topics:
   (1) Environmental sustainability.
   (2) Water.
   (3) Air.
   (4) Energy.
   (5) Forestry.
   (6) Fish and wildlife resources.
   (7) Oceans.
   (8) Toxics and hazardous waste.
   (9) Integrated waste management.
   (10) Integrated pest management.
   (11) Public health and the environment.
   (12) Pollution prevention.
   (13) Resource conservation and recycling.
   (14) Environmental justice.
   (c) The principles shall be aligned to the applicable academic
content standards adopted by the State Board of Education and shall
not duplicate or conflict with any academic content standards.
   (d) (1)  The education principles for the environment shall be
incorporated, as the State Board of Education determines to be
appropriate, in criteria developed for textbook adoption required
pursuant to Section 60200 or 60400 of the Education Code in science,
mathematics, English/language arts, and history/social sciences.
   (2) If the State Board of Education determines that the education
principles for the environment are not appropriate for inclusion in
the textbook adoption criteria cited in paragraph (1), the State
Board of Education shall collaborate with the office to make the
changes necessary to ensure that the principles are included in the
textbook adoption criteria in science, mathematics, English/language
arts, and history/social sciences.
   (e) If the content standards required pursuant to Section 60605 of
the Education Code are revised, the education principles for the
environment shall be appropriately considered for inclusion into part
of the revised academic content standards.
  SEC. 38.  Section 71302 of the Public Resources Code is amended to
read:
   71302.  (a) Using the education principles for the environment
required to be developed pursuant to Section 71301, the office, in
cooperation with the Secretary for Environmental Protection, the
Natural Resources Agency, the State Department of Education, and the
State Board of Education, shall develop a model environmental
curriculum that incorporates these education principles for the
environment. The model curriculum shall be aligned with applicable
State Board of Education adopted academic content standards in
science, mathematics, English/language arts, and history/social
sciences, to the extent that any of those content areas are addressed
in the model curriculum.
   (b) The model curriculum shall be submitted to the Instructional
Quality Commission for review. The commission shall submit its
recommendation to the Secretary for Environmental Protection and to
the Secretary of the Natural Resources Agency.
   (1) The Secretary for Environmental Protection and the Secretary
of the Natural Resources Agency shall review and comment on the model
curriculum.
   (2) The model curriculum along with the comments by the Secretary
for Environmental Protection and the Secretary of the Natural
Resources Agency shall be submitted to the State Board of Education
for its approval.
  SEC. 39.  Section 71303 of the Public Resources Code is amended to
read:
   71303.  (a) As determined appropriate by the Superintendent of
Public Instruction, the State Department of Education shall
incorporate into publications that provide examples of curriculum
resources for teacher use, those materials developed by the office
that provide information on the education principles for the
environment developed pursuant to Section 71300.
   (b) If the Superintendent of Public Instruction determines that
materials developed by the office that provide information on the
education principles for the environment are not appropriate for
inclusion in publications that provide examples of curriculum
resources for teacher use, the Superintendent of Public Instruction
shall collaborate with the office to make the changes necessary to
ensure that the materials are included in that information.
   (c) Pursuant to Section 71302, the department shall coordinate
with the Secretary for Environmental Protection, the Superintendent
of Public Instruction, the State Department of Education, and the
Secretary of the Natural Resources Agency to facilitate use of the
model environmental curriculum by elementary and secondary schools to
the extent that funds are available for this purpose.
   (d) The department, the Secretary for Environmental Protection,
the Superintendent of Public Instruction, the State Department of
Education, and the Secretary of the Natural Resources Agency may
collaborate with other federal, state, and local entities, and
nongovernmental entities including nonprofit organizations,
associations, businesses, individuals, and private entities, and may
enter into interagency agreements, memoranda of understanding, and
contracts to ensure implementation of this part.
   (e) The department shall make the model curriculum available
electronically on the department's Internet Web site. The State
Department of Education shall make readily identifiable on its
Internet Web site a link to the department's Internet Web site
containing the curriculum.
   (f) The State Department of Education, to the extent feasible and
to the extent that funds are available for this purpose, shall
encourage the development and use of instructional materials and
active pupil participation in campus and community environmental
education programs. To the extent feasible, the environmental
education programs should be considered in the development and
promotion of after school programs for elementary and secondary
school pupils and state and local professional development activities
to provide teachers with content background and resources to assist
in teaching about the environment.
   (g) The State Department of Education shall explore implementation
of this section from its baseline resources dedicated to this
purpose and if funding is not available from that source, then
funding may be provided to the department, pursuant to appropriation
by the Legislature, under Section 71305.
  SEC. 40.  Section 71304 of the Public Resources Code is amended to
read:
   71304.  (a) The office, in coordination with the Secretary for
Environmental Protection, shall be responsible for the statewide
coordination of regulatory administrative decisions that require the
development or encourage the promotion of environmental education
                                               for elementary and
secondary school pupils.
   (b) All California Environmental Protection Agency or Natural
Resources Agency boards, departments, or offices that take regulatory
actions or take enforcement actions requiring the development of, or
encouraging the promotion of, environmental education for elementary
and secondary school pupils shall, prior to adoption or approval of
the action, seek comments on the action from the office in order to
promote consistency with this part and cross-media coordination.
   (c) The office shall coordinate with all state agencies to develop
and distribute environmental education materials.
  SEC. 41.  Section 71305 of the Public Resources Code, as added by
Section 23 of Chapter 718 of the Statutes of 2010, is amended to
read:
   71305.  (a) The Environmental Education Account is hereby
established within the State Treasury. Moneys in the account may,
upon appropriation by the Legislature, be expended by the department
for the purposes of this part. The Director of Resources Recycling
and Recovery shall administer this part, including, but not limited
to, the account.
   (b) Notwithstanding any other law to the contrary, the department
may accept and receive federal, state, and local funds and
contributions of funds from a public or private organization or
individual. The account may also receive proceeds from a judgment,
settlement, fine, penalty, or other mechanism, in state or federal
court, when the funds are contributed or the judgment specifies that
the proceeds are to be used for the purposes of this part. The
account may receive those funds, contributions, or proceeds from
judgments, that are specifically designated for use for environmental
education purposes. Private contributors shall not have the
authority to further influence or direct the use of their
contributions.
   (c) Notwithstanding any other law, a state agency that requires
the development of, or encourages the promotion of, environmental
education for elementary and secondary school pupils, may contribute
to the account.
   (d) The department shall immediately deposit any funds contributed
pursuant to subdivision (b) into the account.
   (e) The Legislature finds and declares that the maintenance of the
account is of the utmost importance to the state and that it is
essential that any moneys in the account be used solely for the
purposes authorized in this section and not be used, loaned, or
transferred for any other purposes. Further, state agencies that
promote environmental education for elementary and secondary school
pupils will benefit from the environmental curriculum adopted
pursuant to this part and should provide equitable and balanced
support for the program.
  SEC. 42.  Section 309.5 of the Public Utilities Code is amended to
read:
   309.5.  (a) There is within the commission an independent Office
of Ratepayer Advocates to represent and advocate on behalf of the
interests of public utility customers and subscribers within the
jurisdiction of the commission. The goal of the office shall be to
obtain the lowest possible rate for service consistent with reliable
and safe service levels. For revenue allocation and rate design
matters, the office shall primarily consider the interests of
residential and small commercial customers.
   (b) The director of the office shall be appointed by, and serve at
the pleasure of, the Governor, subject to confirmation by the
Senate.
   The director shall annually appear before the appropriate policy
committees of the Assembly and the Senate to report on the activities
of the office.
   (c) The director shall develop a budget for the office that shall
be subject to final approval of the Department of Finance. As
authorized in the approved budget, the office shall employ personnel
and resources, including attorneys and other legal support staff, at
a level sufficient to ensure that customer and subscriber interests
are effectively represented in all significant proceedings. The
office may employ experts necessary to carry out its functions. The
director may appoint a lead attorney who shall represent the office,
and shall report to and serve at the pleasure of the director. The
lead attorney for the office shall obtain adequate legal personnel
for the work to be conducted by the office from the commission's
attorney appointed pursuant to Section 307. The commission's attorney
shall timely and appropriately fulfill all requests for legal
personnel made by the lead attorney for the office, provided the
office has sufficient moneys and positions in its budget for the
services requested.
   (d) The commission shall develop appropriate procedures to ensure
that the existence of the office does not create a conflict of roles
for any employee. The procedures shall include, but shall not be
limited to, the development of a code of conduct and procedures for
ensuring that advocates and their representatives on a particular
case or proceeding are not advising decisionmakers on the same case
or proceeding.
   (e) The office may compel the production or disclosure of any
information it deems necessary to perform its duties from any entity
regulated by the commission, provided that any objections to any
request for information shall be decided in writing by the assigned
commissioner or by the president of the commission, if there is no
assigned commissioner.
   (f) There is hereby created the Public Utilities Commission
Ratepayer Advocate Account in the General Fund. Moneys from the
Public Utilities Commission Utilities Reimbursement Account in the
General Fund shall be transferred in the annual Budget Act to the
Public Utilities Commission Ratepayer Advocate Account. The funds in
the Public Utilities Commission Ratepayer Advocate Account shall be a
budgetary program fund administered and utilized exclusively by the
office in the performance of its duties as determined by the
director. The director shall annually submit a staffing report
containing a comparison of the staffing levels for each five-year
period.
   (g) On or before January 10 of each year, the office shall provide
to the chairperson of the fiscal committee of each house of the
Legislature and to the Joint Legislative Budget Committee all of the
following information:
   (1) The number of personnel years utilized during the prior year
by the Office of Ratepayer Advocates.
   (2) The total dollars expended by the Office of Ratepayer
Advocates in the prior year, the estimated total dollars expended in
the current year, and the total dollars proposed for appropriation in
the following budget year.
   (3) Workload standards and measures for the Office of Ratepayer
Advocates.
   (h) The office shall meet and confer in an informal setting with a
regulated entity prior to issuing a report or pleading to the
commission regarding alleged misconduct, or a violation of a law or a
commission rule or order, raised by the office in a complaint. The
meet and confer process shall be utilized in good faith to reach
agreement on issues raised by the office regarding any regulated
entity in the complaint proceeding.
  SEC. 43.  Section 318 is added to the Public Utilities Code, to
read:
   318.  The commission shall conduct a zero-based budget for all of
its programs by January 10, 2015. The zero-based budget shall be
completed for the entire commission, rather than on a
division-by-division basis.
  SEC. 44.  (a) The Legislature finds and declares that the purpose
of adding Section 740.5 to the Public Utilities Code is to limit the
implementation of the Public Utilities Commission Decision 12-12-031
(December 20, 2012), Decision Granting Authority to Enter Into a
Research and Development Agreement with Lawrence Livermore National
Laboratory for 21st Century Energy Systems and for costs up to
$152.19 million so that:
   (1) No research and development projects other than for the
purposes of cyber security and grid integration shall be funded by
ratepayers as a result of Decision 12-12-031.
   (2) Total funding for research and development projects for the
purposes of cyber security and grid integration shall not exceed $35
million over the five-year research period.
   (3) Those program management expenditures proposed, commencing
with page seven, in the joint advice letter filed by the state's
three largest electrical corporations, Advice 3379-G/4215-E (Pacific
Gas and Electric Company), Advice 2887-E (Southern California Edison
Company), and Advice 2473-E (San Diego Gas and Electric Company),
dated April 19, 2013, be voided.
   (4) Project managers be limited to three representatives, one
representative each from Pacific Gas and Electric Company, Southern
California Edison Company, and San Diego Gas and Electric Company.
   (5) The Lawrence Livermore National Laboratory, Pacific Gas and
Electric Company, Southern California Edison Company, and San Diego
Gas and Electric Company ensure that research parameters reflect a
new contribution to cyber security and that there not be a
duplication of research being done by other private and governmental
entities.
   (b) Nothing in this act authorizes the Public Utilities Commission'
s adoption of Decision 12-12-031.
  SEC. 45.  Section 740.5 is added to the Public Utilities Code, to
read:
   740.5.  (a) For purposes of this section, "21st Century Energy
System Decision" means commission Decision 12-12-031 (December 20,
2012), Decision Granting Authority to Enter Into a Research and
Development Agreement with Lawrence Livermore National Laboratory for
21st Century Energy Systems and for costs up to $152.19 million, or
any subsequent decision in Application 11-07-008 (July 18, 2011),
Application of Pacific Gas and Electric Company (U39M), San Diego Gas
and Electric Company (U902E), and Southern California Edison Company
(U338E) for Authority to Increase Electric Rates and Charges to
Recover Costs of Research and Development Agreement with Lawrence
Livermore National Laboratory for 21st Century Energy Systems.
   (b) In implementing the 21st Century Energy System Decision, the
commission shall not authorize recovery from ratepayers of any
expense for research and development projects that are not for
purposes of cyber security and grid integration. Total funding for
research and development projects for the purposes of cyber security
and grid integration pursuant to the 21st Century Energy System
Decision shall not exceed thirty-five million dollars ($35,000,000).
All cyber security and grid integration research and development
projects shall be concluded by the fifth anniversary of their start
date.
   (c) The commission shall not approve for recovery from ratepayers,
those program management expenditures proposed, commencing with page
seven, in the joint advice letter filed by the state's three largest
electrical corporations, Advice 3379-G/4215-E (Pacific Gas and
Electric Company), Advice 2887-E (Southern California Edison
Company), and Advice 2473-E (San Diego Gas and Electric Company),
dated April 19, 2013. Project managers for the 21st Century Energy
System Decision shall be limited to three representatives, one
representative each from Pacific Gas and Electric Company, Southern
California Edison Company, and San Diego Gas and Electric Company.
   (d) The commission shall require the Lawrence Livermore National
Laboratory, as a condition for entering into any contract pursuant to
the 21st Century Energy System Decision, and Pacific Gas and
Electric Company, Southern California Edison Company, and San Diego
Gas and Electric Company to ensure that research parameters reflect a
new contribution to cyber security and that there not be a
duplication of research being done by other private and governmental
entities.
   (e) (1) The commission shall require each participating electrical
corporation to prepare and submit to the commission by December 1,
2013, a joint report on the scope of all proposed research projects,
how the proposed project may lead to technological advancement and
potential breakthroughs in cyber security and grid integration, and
the expected timelines for concluding the projects. The commission
shall, within 30 days of receiving the joint report, determine
whether the report is sufficient or requires revision, and upon
determining that the report is sufficient submit the report to the
Legislature in compliance with Section 9795 of the Government Code.
   (2) The commission shall require each participating electrical
corporation to prepare and submit to the commission by 60 days
following the conclusion of all research and development projects, a
joint report summarizing the outcome of all funded projects,
including an accounting of expenditures by the project managers and
grant recipients on administrative and overhead costs and whether the
project resulted in any technological advancements or breakthroughs
in promoting cyber security and grid integration. The commission
shall, within 30 days of receiving the joint report, determine
whether the report is sufficient or requires revision, and upon
determining that the report is sufficient, submit the report to the
Legislature in compliance with Section 9795 of the Government Code.
   (3) This subdivision shall become inoperable January 1, 2023,
pursuant to Section 10231.5 of the Government Code.
  SEC. 46.  Section 854.5 is added to the Public Utilities Code, to
read:
   854.5.  (a) For purposes of this section, a "nonstate entity"
means a company, corporation, partnership, firm, or other entity or
group of entities, whether organized for profit or not for profit.
   (b) The commission, by order, decision, motion, settlement, or
other action, shall not establish a nonstate entity with any moneys
other than those moneys that would otherwise belong to the public
utility's shareholders. A nonstate entity to be created with moneys
from a public utility's shareholders shall be subject to a 30-day
review by the Joint Legislative Budget Committee prior to creation.
This subdivision does not limit the authority of the commission to
form an advisory committee or other body whose budget is subject to
oversight by the commission and the Department of Finance.
   (c) The commission shall not enter into a contract with a nonstate
entity in which a person serves as an owner, director, or officer
while serving as a commissioner. Any contract between the commission
and a nonstate entity shall be void and cease to exist by operation
of law, if a commissioner, who was a commissioner at the time the
contract was awarded, entered into, or extended, becomes, on or after
January 1, 2014, an owner, director, or officer of the nonstate
entity while serving as a commissioner.
   (d) Beginning June 1, 2014, a commissioner who acts as an owner,
director, or officer of a nonstate entity that was established prior
to January 1, 2014, as a result of an order, decision, motion,
settlement, or other action by the commission in which the
commissioner participated, neglects his or her duty pursuant to
Section 1 of Article XII of the California Constitution, for which
the commissioner may be removed pursuant to that section.
  SEC. 47.  Section 2120 is added to the Public Utilities Code, to
read:
   2120.  (a) The commission shall not distribute, expend, or
encumber any moneys received by the commission as a result of any
commission proceeding or judicial action, including the compromise or
settlement of a claim, until both of the following are true:
   (1) The commission has provided the Director of Finance with
written notification of the receipt of the moneys and the basis for
those moneys being received by the commission.
   (2) The Director of Finance provides not less than 60 days'
written notice to the Chairperson of the Joint Legislative Budget
Committee and the chairs of the appropriate budget subcommittees of
the Senate and Assembly of the receipt of the moneys and the basis
for those moneys being received by the commission.
   (b) This section does not apply to application or licensing fees
charged by the commission to defray regulatory expenses.
   (c) This section does not apply to moneys received by the
commission in a court-approved settlement or as a result of a court
judgment where the court orders that the moneys be used for specified
purposes.
   (d) This section does not apply to moneys received by the
commission where statutes expressly provide how the moneys are to be
paid or used, including all of the following:
   (1) Payment to any fund created by Chapter 1.5 (commencing with
Section 270).
   (2) Payment to any account or fund pursuant to Chapter 2.5
(commencing with Section 401).
   (3) Payment to the Ratepayer Relief Fund pursuant to Article 9.5
(commencing with Section 16428.1) of Chapter 2 of Part 2 of Division
4 of Title 2 of the Government Code.
  SEC. 48.  Section 2851 of the Public Utilities Code is amended to
read:
   2851.  (a) In implementing the California Solar Initiative, the
commission shall do all of the following:
   (1) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the State Energy Resources Conservation and
Development Commission pursuant to Chapter 8.8 (commencing with
Section 25780) of Division 15 of the Public Resources Code. The
commission shall determine the eligibility of a solar energy system,
as defined in Section 25781 of the Public Resources Code, to receive
monetary incentives until the time the State Energy Resources
Conservation and Development Commission establishes eligibility
criteria pursuant to Section 25782. Monetary incentives shall not be
awarded for solar energy systems that do not meet the eligibility
criteria. The incentive level authorized by the commission shall
decline each year following implementation of the California Solar
Initiative, at a rate of no less than an average of 7 percent per
year, and shall be zero as of December 31, 2016. The commission shall
adopt and publish a schedule of declining incentive levels no less
than 30 days in advance of the first decline in incentive levels. The
commission may develop incentives based upon the output of
electricity from the system, provided those incentives are consistent
with the declining incentive levels of this paragraph and the
incentives apply to only the first megawatt of electricity generated
by the system.
   (2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than 30
kilowatts. Performance-based incentives shall decline at a rate of
no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:
   (A) Apply performance-based incentives only to customer classes
designated by the commission.
   (B) Design the performance-based incentives so that customers may
receive a higher level of incentives than under incentives based on
installed electrical capacity.
   (C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.
   (3) By January 1, 2008, the commission, in consultation with the
State Energy Resources Conservation and Development Commission, shall
require reasonable and cost-effective energy efficiency improvements
in existing buildings as a condition of providing incentives for
eligible solar energy systems, with appropriate exemptions or
limitations to accommodate the limited financial resources of
low-income residential housing.
   (4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the maximum
incentive for ratepayers to install solar energy systems so that the
system's peak electricity production coincides with California's
peak electricity demands and that ensures that ratepayers receive due
value for their contribution to the purchase of solar energy systems
and customers with solar energy systems continue to have an
incentive to use electricity efficiently. In developing the
time-variant tariff, the commission may exclude customers
participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 80110 of the Water Code. Nothing in this
paragraph authorizes the commission to require time-variant pricing
for ratepayers without a solar energy system.
   (b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).
   (c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for generation
or storage of electricity or to offset natural gas usage. Any program
that allocates additional moneys to research, development, and
demonstration shall be developed in collaboration with the Energy
Commission to ensure there is no duplication of efforts, and adopted
by the commission through a rulemaking or other appropriate public
proceeding. Any grant awarded by the commission for research,
development, and demonstration shall be approved by the full
commission at a public meeting. This subdivision does not prohibit
the commission from continuing to allocate moneys to research,
development, and demonstration pursuant to the self-generation
incentive program for distributed generation resources originally
established pursuant to Chapter 329 of the Statutes of 2000, as
modified pursuant to Section 379.6.
   (2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to make
solar technologies cost effective.
   (3) On or before June 30, 2009, and by June 30th of every year
thereafter, the commission shall submit to the Legislature an
assessment of the success of the California Solar Initiative program.
That assessment shall include the number of residential and
commercial sites that have installed solar thermal devices for which
an award was made pursuant to subdivision (b) and the dollar value of
the award, the number of residential and commercial sites that have
installed solar energy systems, the electrical generating capacity of
the installed solar energy systems, the cost of the program, total
electrical system benefits, including the effect on electrical
service rates, environmental benefits, how the program affects the
operation and reliability of the electrical grid, how the program has
affected peak demand for electricity, the progress made toward
reaching the goals of the program, whether the program is on schedule
to meet the program goals, and recommendations for improving the
program to meet its goals. If the commission allocates additional
moneys to research, development, and demonstration that explores
solar technologies and other distributed generation technologies
pursuant to paragraph (1), the commission shall include in the
assessment submitted to the Legislature, a description of the
program, a summary of each award made or project funded pursuant to
the program, including the intended purposes to be achieved by the
particular award or project, and the results of each award or
project.
   (d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.
   (2) Notwithstanding any other provision of law, any charge imposed
to fund the program adopted and implemented pursuant to this section
shall be imposed upon all customers not participating in the
California Alternate Rates for Energy (CARE) or family electric rate
assistance (FERA) programs, including those residential customers
subject to the rate cap required by Section 80110 of the Water Code
for existing baseline quantities or usage up to 130 percent of
existing baseline quantities of electricity.
   (3) The costs of the program adopted and implemented pursuant to
this section may not be recovered from customers participating in the
California Alternate Rates for Energy or CARE program established
pursuant to Section 739.1, except to the extent that program costs
are recovered out of the nonbypassable system benefits charge
authorized pursuant to Section 399.8.
   (e) In implementing the California Solar Initiative, the
commission shall ensure that the total cost over the duration of the
program does not exceed three billion five hundred fifty million
eight hundred thousand dollars ($3,550,800,000). The financial
components of the California Solar Initiative shall consist of the
following:
   (1) Programs under the supervision of the commission funded by
charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas and
Electric Company. The total cost over the duration of these programs
shall not exceed two billion three hundred sixty-six million eight
hundred thousand dollars ($2,366,800,000) and includes moneys
collected directly into a tracking account for support of the
California Solar Initiative.
   (2) Programs adopted, implemented, and financed in the amount of
seven hundred eighty-four million dollars ($784,000,000), by charges
collected by local publicly owned electric utilities pursuant to
Section 387.5. Nothing in this subdivision shall give the commission
power and jurisdiction with respect to a local publicly owned
electric utility or its customers.
   (3) Programs for the installation of solar energy systems on new
construction (New Solar Homes Partnership Program), administered by
the Energy Commission, and funded by charges in the amount of four
hundred million dollars ($400,000,000), collected from customers of
San Diego Gas and Electric Company, Southern California Edison
Company, and Pacific Gas and Electric Company. If the commission is
notified by the Energy Commission that funding available pursuant to
Section                                           25751 of the Public
Resources Code for the New Solar Homes Partnership Program has been
exhausted, the commission may require an electrical corporation to
continue administration of the program pursuant to the guidelines
established for the program by the Energy Commission, until the
funding limit authorized by this paragraph has been reached. The
commission, in consultation with the Energy Commission, shall
supervise the administration of the continuation of the New Solar
Homes Partnership Program by an electrical corporation. An electrical
corporation may elect to have a third party, including the Energy
Commission, administer the utility's continuation of the New Solar
Homes Partnership Program. After the exhaustion of funds, the Energy
Commission shall notify the Joint Legislative Budget Committee 30
days prior to the continuation of the program.
   (4) The changes made to this subdivision by the act adding this
paragraph do not authorize the levy of a charge or any increase in
the amount collected pursuant to any existing charge, nor do the
changes add to, or detract from, the commission's existing authority
to levy or increase charges.
  SEC. 49.  Section 5900 of the Public Utilities Code is amended to
read:
   5900.  (a)  The holder of a state franchise shall comply with the
provisions of Sections 53055, 53055.1, 53055.2, and 53088.2 of the
Government Code, and any other customer service standards pertaining
to the provision of video service established by federal law or
regulation or adopted by subsequent enactment of the Legislature. All
customer service and consumer protection standards under this
section shall be interpreted and applied to accommodate newer or
different technologies while meeting or exceeding the goals of the
standards.
   (b) The holder of a state franchise shall comply with provisions
of Section 637.5 of the Penal Code and the privacy standards
contained in Section 551 and following of Title 47 of the United
States Code.
   (c) The local entity shall enforce all of the customer service and
protection standards of this section with respect to complaints
received from residents within the local entity's jurisdiction, but
it may not adopt or seek to enforce any additional or different
customer service or other performance standards under Section 53055.3
or subdivision (q), (r), or (s) of Section 53088.2 of the Government
Code, or any other authority or provision of law.
   (d) The local entity shall, by ordinance or resolution, provide a
schedule of penalties for any material breach by a holder of a state
franchise of this section. No monetary penalties shall be assessed
for a material breach if it is out of the reasonable control of the
holder. Further, no monetary penalties may be imposed prior to
January 1, 2007. Any schedule of monetary penalties adopted pursuant
to this section shall in no event exceed five hundred dollars ($500)
for each day of each material breach, not to exceed one thousand five
hundred dollars ($1,500) for each occurrence of a material breach.
However, if a material breach of this section has occurred, and the
local entity has provided notice and a fine or penalty has been
assessed, and if a subsequent material breach of the same nature
occurs within 12 months, the penalties may be increased by the local
entity to a maximum of one thousand dollars ($1,000) for each day of
each material breach, not to exceed three thousand dollars ($3,000)
for each occurrence of the material breach. If a third or further
material breach of the same nature occurs within those same 12
months, and the local entity has provided notice and a fine or
penalty has been assessed, the penalties may be increased to a
maximum of two thousand five hundred dollars ($2,500) for each day of
each material breach, not to exceed seven thousand five hundred
dollars ($7,500) for each occurrence of the material breach. With
respect to video providers subject to a franchise or license, any
monetary penalties assessed under this section shall be reduced
dollar-for-dollar to the extent any liquidated damage or penalty
provision of a current cable television ordinance, franchise
contract, or license agreement imposes a monetary obligation upon a
video provider for the same customer service failures, and no other
monetary damages may be assessed.
   (e) The local entity shall give the video service provider written
notice of any alleged material breach of the customer service
standards of this division and allow the video provider at least 30
days from receipt of the notice to remedy the specified material
breach.
   (f) A material breach for the purposes of assessing penalties
shall be deemed to have occurred for each day within the jurisdiction
of each local entity, following the expiration of the period
specified in subdivision (e), that any material breach has not been
remedied by the video service provider, irrespective of the number of
customers or subscribers affected.
   (g) Any penalty assessed pursuant to this section shall be
remitted to the local entity, which shall submit one-half of the
penalty to the Digital Divide Account established in Section 280.5.
   (h) Any interested person may seek judicial review of a decision
of the local entity in a court of appropriate jurisdiction. For this
purpose, a court of law shall conduct a de novo review of any issues
presented.
   (i) This section shall not preclude a party affected by this
section from utilizing any judicial remedy available to that party
without regard to this section. Actions taken by a local legislative
body, including a local franchising entity, pursuant to this section
shall not be binding upon a court of law. For this purpose, a court
of law shall conduct de novo review of any issues presented.
   (j) For purposes of this section, "material breach" means any
substantial and repeated failure of a video service provider to
comply with service quality and other standards specified in
subdivision (a).
   (k) The Office of Ratepayer Advocates shall have authority to
advocate on behalf of video subscribers regarding renewal of a
state-issued franchise and enforcement of this section, and Sections
5890 and 5950. For this purpose, the office shall have access to any
information in the possession of the commission subject to all
restrictions on disclosure of that information that are applicable to
the commission.
  SEC. 50.  The Legislature finds and declares all of the following:
   (a) The Department of Transportation owns real property commonly
known as 2829 Juan Street, San Diego, which served as the department'
s District 11 administrative headquarters until 2006.
   (b) Subsequently, the Department of Transportation constructed a
new District 11 administrative headquarters and relocated its staff
to the new facility, and no longer needs the property at 2829 Juan
Street, and is desirous of transferring it.
   (c) It has cost the Department of Transportation over five hundred
thousand dollars ($500,000) to continue to own and maintain the
property at 2829 Juan Street, and future annual costs to maintain the
property will be at least eighty thousand dollars ($80,000)
annually. It is also estimated to cost between three million dollars
($3,000,000) and six million dollars ($6,000,000) to remove
antiquated and obsolete buildings and fixtures from the property.
   (d) The property at 2829 Juan Street is immediately adjacent to
property owned by the Department of Parks and Recreation, which is
operated as Old Town San Diego State Historic Park and which is one
of the most popular and most visited parks in the state park system.
   (e) The Department of Parks and Recreation desires to have the
property at 2829 Juan Street transferred to it, so that it can be
incorporated into Old Town San Diego State Historic Park, or
developed in a manner than complements the state park.
   (f) It is adequate consideration for the Department of
Transportation to transfer the property at 2829 Juan Street to the
Department of Parks and Recreation if the recipient department
assumes all ongoing maintenance and ownership liabilities as well as
all future development costs, including the removal of all structures
and fixtures that the recipient department concludes are not
consistent with the development of Old Town San Diego State Historic
Park.
  SEC. 51.  Section 104.22 is added to the Streets and Highways Code,
to read:
   104.22.  (a) Notwithstanding any other law, the Department of
Transportation shall, consistent with Article XIX of the California
Constitution, transfer to the Department of Parks and Recreation the
real property in the City of San Diego between Taylor Street and
Wallace Street and between Juan Street and Calhoun Street, which was
acquired for highway purposes and which was previously used by the
department as its District 11 administrative headquarters, and which
is commonly known as 2829 Juan Street, San Diego.
   (b) The real property transferred pursuant to subdivision (a)
shall be incorporated into the state park system upon its transfer to
the Department of Parks and Recreation.
   (c) On and after the date of transfer, the Department of
Transportation shall have no continuing obligation relating to the
ownership, maintenance, or control of the transferred real property,
and all obligations of ownership, maintenance, and control shall
thereafter be borne by the Department of Parks and Recreation.
   (d) The transfer of the real property required by this section
shall be completed within 90 days of the effective date of the act
enacting this section in the 2013-14 Regular Session of the
Legislature.
   (e) The transfer of the real property required by this section
serves a public purpose.
  SEC. 52.  Section 10001.7 is added to the Water Code, to read:
   10001.7.  The Director of Finance shall notify the Joint
Legislative Budget Committee of any hydroelectric power project
relicensing proposal for the Federal Energy Regulatory Commission
that, if approved by the department, would obligate the General Fund
in the current or future years. The department may approve that
relicensing proposal not less than 30 days after the Director of
Finance notifies the Joint Legislative Budget Committee.
  SEC. 53.  Section 85200 of the Water Code is amended to read:
   85200.  (a) The Delta Stewardship Council is hereby established as
an independent agency of the state.
   (b) The council shall consist of seven voting members, of which
four members shall be appointed by the Governor and confirmed by the
Senate, one member shall be appointed by the Senate Committee on
Rules, one member shall be appointed by the Speaker of the Assembly,
and one member shall be the Chairperson of the Delta Protection
Commission. Initial appointments to the council shall be made by July
1, 2010.
   (c) (1) (A) The initial terms of two of the four members appointed
by the Governor shall be four years.
   (B) The initial terms of two of the four members appointed by the
Governor shall be six years.
   (C) The initial terms of the members appointed by the Senate
Committee on Rules and the Speaker of the Assembly shall be four
years.
   (D) Upon the expiration of each term described in subparagraphs
(A), (B), or (C), the term of each succeeding member shall be four
years.
   (2) The Chairperson of the Delta Protection Commission shall serve
as a member of the council for the period during which he or she
holds the position as commission chairperson.
   (d) Any vacancy shall be filled by the appointing authority within
60 days. If the term of a council member expires, and no successor
is appointed within the allotted timeframe, the existing member may
serve up to 180 days beyond the expiration of his or her term.
   (e) The council members shall select a chairperson from among
their members, who shall serve for not more than four years in that
capacity.
   (f) The council shall meet once a month in a public forum. At
least two meetings each year shall take place at a location within
the Delta.
  SEC. 54.  Section 34 of Chapter 718 of the Statutes of 2010 is
repealed.
  SEC. 55.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 56.  The balance of the appropriation made in Schedule (1) of
Item 3850-301-6051 of Section 2.00 of the Budget Act of 2010 (Chapter
724, Statutes 2010) is hereby reappropriated to the Coachella Valley
Mountains Conservancy, to be available for expenditure for capital
outlay or local assistance until June 30, 2016.
  SEC. 57.  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.