BILL NUMBER: SB 862 CHAPTERED
BILL TEXT
CHAPTER 36
FILED WITH SECRETARY OF STATE JUNE 20, 2014
APPROVED BY GOVERNOR JUNE 20, 2014
PASSED THE SENATE JUNE 15, 2014
PASSED THE ASSEMBLY JUNE 15, 2014
AMENDED IN ASSEMBLY JUNE 13, 2014
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2014
An act to amend Section 16428.9 of, and to add Sections 12087.5
and 19602.8 to, the Government Code, to amend Sections 39711, 39715,
and 44091.1 of, and to add Sections 39719 and 39719.1 to, the Health
and Safety Code, to amend Sections 4475, 25470, 25472, 25474, and
75121 of, to amend the heading of Chapter 5.7 (commencing with
Section 25470) of Division 15 of, to add Sections 25471.5 and 25474.5
to, to add Article 7.8 (commencing with Section 4598) to Chapter 8
of Part 2 of Division 4 of, to add Chapter 22 (commencing with
Section 42995) to Part 3 of Division 30 of, to add Division 44
(commencing with Section 75200) to, and to repeal Section 12292 of,
the Public Resources Code, to amend Section 2827 of the Public
Utilities Code, to repeal Section 2 of Chapter 657 of the Statutes of
2007, and to amend Section 1 of Chapter 415 of the Statutes of 2013,
relating to greenhouse gases, and making an appropriation therefor,
to take effect immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 862, Committee on Budget and Fiscal Review. Greenhouse gases:
emissions reduction.
(1) The California Global Warming Solutions Act of 2006 designates
the State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The act authorizes the state board to include the use of market-based
compliance mechanisms. Existing law requires all moneys, except for
fines and penalties, collected by the state board from the auction or
sale of allowances as part of a market-based compliance mechanism to
be deposited in the Greenhouse Gas Reduction Fund and to be
available upon appropriation by the Legislature.
This bill would establish the CalRecycle Greenhouse Gas Reduction
Revolving Loan Program, which would authorize the Department of
Resources Recycling and Recovery to provide loans and grants to
reduce greenhouse gas emissions by promoting in-state development of
infrastructure to process organics and other recyclable materials
into new value-added products, as specified. The bill would establish
the CalRecycle Greenhouse Gas Reduction Revolving Loan Fund. The
bill would continuously appropriate moneys in the CalRecycle
Greenhouse Gas Reduction Revolving Loan Fund to provide loans under
the program. The bill would transfer $10,000,000 from the Greenhouse
Gas Reduction Fund to the CalRecycle Greenhouse Gas Reduction
Revolving Loan Fund, as specified, thereby making an appropriation.
The bill would require the department to administer a grant program
to provide financial assistance to reduce greenhouse gas emissions,
as specified, from any additional appropriation by the Legislature
from the Greenhouse Gas Reduction Fund.
(2) Existing law establishes the Department of Community Services
and Development and requires the department to administer, among
other things, the federal Low-Income Home Energy Assistance Program.
This bill would require the Department of Community Services and
Development to develop and administer the Energy Efficiency
Low-Income Weatherization Program and to expend moneys appropriated
by the Legislature from the Greenhouse Gas Reduction Fund for the
purposes of the program.
(3) Existing law, pursuant to the Budget Act of 2013, provides for
a $500 million loan from the Greenhouse Gas Reduction Fund to the
General Fund.
Existing law creates the High-Speed Rail Authority, with certain
powers and duties relative to development and construction of a
high-speed rail system.
This bill would require that $400 million of the $500 million loan
made from the Greenhouse Gas Reduction Fund to the General Fund in
2013, upon repayment to the Greenhouse Gas Reduction Fund, be
available to the High-Speed Rail Authority beginning in the 2015-16
fiscal year for specified components of the initial operating segment
and the Phase I Blended system of the high-speed rail project. The
bill would require the loan to be repaid as necessary based on the
financial needs of the high-speed rail project, and would
continuously appropriate these funds from the Greenhouse Gas
Reduction Fund to the authority.
This bill would also, beginning in the 2015-16 fiscal year,
continuously appropriate 25% of the annual proceeds of the Greenhouse
Gas Reduction Fund to the authority for these high-speed rail
purposes.
(4) Existing law provides various sources of funding for
transportation programs, including capital and operating funds for
rail services, including intercity, commuter, and urban rail systems.
This bill would create the Transit and Intercity Rail Capital
Program to fund capital improvements and operational investments to
modernize California's intercity, commuter, and urban rail systems to
achieve certain policy objectives, including the expansion and
integration of rail services, with the program to be administered by
the Transportation Agency. The bill would provide for the awarding of
grants by the California Transportation Commission for various
purposes to public agency operators of rail services from funds
appropriated in that regard from the Greenhouse Gas Reduction Fund.
The bill would require a project to demonstrate that it will achieve
a reduction in greenhouse gas emissions in order to be eligible for
funding under the program, and would require funds to be programmed
with a goal of providing 25% of available funding to projects
benefiting disadvantaged communities. The bill would require the
Transportation Agency to adopt procedures and guidelines governing
the program, and to conduct at least 2 public workshops on draft
program guidelines containing selection criteria. The bill would
require the commission to award grants pursuant to the project list
prepared by the Transportation Agency. The bill would, beginning in
the 2015-16 fiscal year, continuously appropriate 10% of the annual
proceeds of the Greenhouse Gas Reduction Fund for the program.
This bill would establish the Low Carbon Transit Operations
Program to provide operating and capital assistance for transit
agencies to reduce greenhouse gas emissions and improve mobility,
with a priority on serving disadvantage communities. The bill would
require the Department of Transportation, in coordination with the
State Air Resources Board, to develop guidelines for use by transit
agencies to demonstrate that proposed expenditures will meet
specified criteria and establish reporting requirements for
documenting ongoing compliance with those criteria. The bill would
require the department, in consultation with the state board, to
determine whether proposed expenditures are eligible for funding
under the program before authorizing the Controller to release the
funds. The bill would, beginning in the 2015-16 fiscal year,
continuously appropriate 5% of the annual proceeds of the Greenhouse
Gas Reduction Fund for the program.
(5) Existing law establishes in the State Treasury the Energy
Efficiency State Property Revolving Loan Fund, which serves as a
repository for moneys received by the State Energy Resources
Conservation and Development Commission under the federal American
Recovery and Reinvestment Act of 2009 for the purposes of the federal
State Energy Programs. Existing law continuously appropriates moneys
in the fund to the Department of General Services for loans for
projects on state-owned buildings and facilities to achieve greater,
long-term energy efficiency, energy conservation, and energy cost and
use avoidance. Existing law authorizes the commission to recover the
project costs through energy utility rebates awarded to the state
agency receiving the loan as a result of completed projects.
This bill would establish in the State Treasury the Energy
Efficiency Retrofit State Revolving Fund and would continuously
appropriate moneys in the fund to the department for loans for
projects in or on state-owned buildings and facilities to implement
energy efficiency retrofit projects and to use renewable energy
technology to achieve energy efficiency, reduce emissions of
greenhouse gases, and reduce grid-based electricity purchases,
thereby making an appropriation. The bill would authorize the
commission to recover project costs through interest earnings, rather
than through energy utility rebates.
(6) Existing law establishes the Strategic Growth Council
consisting of specified members and requires the council to, among
other things, manage and award grants and loans to support the
planning and development of sustainable communities. Existing law
requires the council on July 1, 2010, and annually thereafter, to
report to the Legislature on the financial assistance provided.
This bill would increase the membership of the council by 2
members with one appointed by the Speaker of the Assembly and one
appointed by the Senate Committee on Rules. The bill would require
the council to develop and administer the Affordable Housing and
Sustainable Communities Program to reduce greenhouse gas emissions
through projects that implement land use, housing, transportation,
and agricultural land preservation practices to support infill and
compact development and that support other related and coordinated
public policy objectives. The bill would require the executive
director of the council to report the progress on the implementation
of the program as a part of the council's annual report to the
Legislature. The bill would, beginning in the 2015-16 fiscal year,
continuously appropriate to the council 20% of the annual proceeds of
the Greenhouse Gas Reduction Fund for the program.
(7) The Z'berg-Nejedly Forest Practice Act of 1973 prohibits a
person from conducting timber operations on timberland unless a
timber harvesting plan has been prepared by a registered professional
forester and has been submitted to the Department of Forestry and
Fire Protection and approved by the Director of Forestry and Fire
Protection or the State Board of Forestry and Fire Protection. A
violation of the act is a crime.
This bill would authorize the director to enter into agreements
and make grants for the purpose of preparing a program timberland
environmental impact report (PTEIR) for projects that demonstrate
potential to increase carbon sequestration, decrease atmospheric
carbon levels, and reduce the potential for large wildland fires on
land owned by smaller nonindustrial landowners, as defined. The bill
would require a participating landowner to do certain things to be
eligible to participate, including submit a proposal to the
department detailing the long-term forest and land management plans,
for approval by the director. The bill would require the department
to pay for the costs of preparing the PTEIR or provide grants from
funds appropriated to the department from the Greenhouse Gas
Reduction Fund. The bill would authorize the board to promulgate
regulations, guidelines, or publications as the board deems necessary
to carry out the above provisions. The bill would require the
regulations to specify, among other things, criteria to determine
that timberlands have demonstrated potential for increased carbon
sequestration and fire protection benefits.
Because a violation of these provisions by participating
landowners would be a crime, the bill would impose a state-mandated
local program.
(8) The California Constitution establishes the State Personnel
Board and sets forth the duties of the board, including prescribing
classifications for state employees. Existing law authorizes the
Department of Human Resources to conduct demonstration projects,
defined as a project approved by the State Personnel Board and
conducted by the department or another appointed authority to
determine whether a specified change in personnel management policies
or procedures would result in improved state personnel management.
This bill would authorize the Department of Forestry and Fire
Protection to conduct a demonstration project for competitive
examinations on a position specific basis for specified
classifications relating to forestry and to make appointments to
positions based on a merit process open to all persons meeting
specific minimum qualifications, as provided.
(9) Existing law authorizes the Director of Forestry and
Protection to enter into an agreement, including a grant agreement,
for the prescribed burning or other hazardous fuel reduction with the
owner or any other person who has legal control of any property or
any public agency, as provided.
This bill would additionally authorize the director to enter into
an agreement, including a grant agreement, with any nonprofit
organization.
(10) The Forest Legacy Program encourages the conservation of
private forest lands by authorizing the Department of Forestry and
Fire Protection to acquire conservation easements of eligible
properties according to specified criteria. Existing law repeals
these provisions on January 1, 2015, but requires the department to,
among other things, provide monitoring of the conservation easements,
despite the repeal.
This bill would delete the provision repealing the program,
thereby continuing the program indefinitely.
(11) Existing law establishes the Air Quality Improvement Program
that is administered by the State Air Resources Board for the
purposes of funding projects related to, among other things,
reduction of criteria air pollutants and improvement of air quality.
Pursuant to the Air Quality Improvement Program, the state board has
established the Clean Vehicle Rebate Project to promote the
production and use of zero-emission vehicles and the Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project to provide
vouchers to help California fleets to purchase hybrid and
zero-emission trucks and buses.
Existing law requires the Controller to transfer, as a loan,
$30,000,000 from the Vehicle Inspection and Repair Fund to the Air
Quality Improvement Fund. Existing law appropriates to the state
board these moneys in the Air Quality Improvement Fund to be expended
only for the Clean Vehicle Rebate Project and the Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project.
This bill instead would appropriate $30,000,000 from the
Greenhouse Gas Reduction Fund to the state board to be expended only
for the Clean Vehicle Rebate Project and the Hybrid and Zero-Emission
Truck and Bus Voucher Incentive Project. The bill would require the
unencumbered balance of the appropriations from the Air Quality
Improvement Fund to revert to the Vehicle Inspection and Repair Fund.
The bill would require the appropriation from the Greenhouse Gas
Reduction Fund to be available for encumbrance until June 30, 2015.
(12) Existing law requires a certain amount of the smog abatement
fee collected from owners of specified vehicles to be deposited in
the Vehicle Inspection and Repair Fund.
This bill would authorize those moneys to be expended, upon
appropriation by the Legislature, for the Clean Vehicle Rebate
Project. The bill would transfer $15,000,000 from the Vehicle
Inspection and Repair Fund to the Air Quality Improvement Fund.
(13) Existing law requires a state agency expending moneys
appropriated by the Legislature from the Greenhouse Gas Reduction
Fund to prepare a record regarding the expenditure of those moneys.
This bill would require the State Air Resources Board to develop
guidance on reporting and quantification methods for agencies
receiving an appropriation from the Greenhouse Gas Reduction Fund.
(14) Existing law requires the California Environmental Protection
Agency to identify disadvantaged communities for investment
opportunities funded by the Greenhouse Gas Reduction Fund. Existing
law requires the Department of Finance, in consultation with the
State Air Resources Board and other relevant state agencies, to
develop a 3-year investment plan for moneys deposited in the
Greenhouse Gas Reduction Fund. Existing law requires the investment
plan to allocate a certain amount of moneys from the fund to benefit
disadvantaged communities. Existing law requires funding guidelines
developed for agencies administering programs funded by the
Greenhouse Gas Reduction Fund to include guidelines for how an
administering agency should maximize benefits for disadvantaged
communities.
This bill would require the California Environmental Protection
Agency to hold one public workshop before making the identification.
The bill would require the State Air Resources Board, in consultation
with the California Environmental Protection Agency, to develop
guidelines for administering agencies to ensure the above
requirements are met.
(15) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires every electric
utility, as defined, to develop a standard contract or tariff
providing for net energy metering, as defined, and to make this
contract or tariff available to eligible customer-generators, as
defined, upon request for generation by a renewable electrical
generation facility, as defined. An eligible customer-generator is
defined as meaning a residential customer, small commercial customer,
or commercial, industrial, or agricultural customer of an electric
utility, who uses a renewable electrical generation facility, or a
combination of those facilities, with a total capacity of not more
than one megawatt, that is located on the customer's owned, leased,
or rented premises, and is interconnected and operates in parallel
with the electrical grid, and is intended primarily to offset part or
all of the customer's own electrical requirements.
This bill would include, as an eligible customer-generator, a
facility of the Department of Corrections and Rehabilitation using a
renewable electrical generation technology, or a combination of
renewable electrical generation technologies, with a total capacity
of not more than 8 megawatts and that does not export more than 1.35
megawatts of electricity generated by wind technologies to the
electrical grid at any time.
(16) 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.
(17) 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. (a) The Legislature finds and declares all of the
following:
(1) The Legislature found, in the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code), enacted as Chapter 488 of the
Statutes of 2006 (AB 32), that global warming caused by emissions of
greenhouse gases poses a serious threat to the economic well-being,
public health, natural resources, and the environment of California.
Data, research, and studies collected and published since the passage
of AB 32, including the Indicators of Climate Change in California,
August 2013 issued by the California Environmental Protection Agency;
the Our Changing Climate 2012, Vulnerability & Adaption to the
Increasing Risks from Climate Change in California - A Summary Report
on the Third Assessment from the California Climate Change Center;
and the Third United States National Climate Assessment by the United
States Global Change Research Program (May 2014) confirm that the
detrimental effects of global warming identified in AB 32 continue to
materialize and expand.
(2) Under AB 32, the State Air Resources Board is charged with
monitoring and regulating sources of emissions of greenhouse gases
that cause global warming. Exercising this responsibility, the state
board adopted the AB 32 Scoping Plan, which identified various
regulatory programs that are designed to achieve the maximum
technologically feasible and cost-effective reductions in emissions
of greenhouse gases. These programs further the purposes of AB 32.
The state board has subsequently adopted these programs.
(3) Under the authority granted by AB 32, the state board adopted
the California Cap on Greenhouse Gas Emissions and Market-Based
Compliance Mechanisms regulation. The regulation includes the
distribution of a portion of the allowances by auction and reserve
sales, the proceeds of which the Legislature directed be deposited in
the Greenhouse Gas Reduction Fund (GGRF).
(4) As enacted by Chapter 807 of the Statutes of 2012, the
Department of Finance developed and submitted the first three-year
investment plan to the Legislature in 2013. The investment plan
identifies the state's greenhouse gas emission reduction goals and
priority programs for investment of proceeds deposited into the GGRF
to support achievement of those goals.
(5) As required by existing law, moneys are to be appropriated
from the GGRF in a manner consistent with the requirements of Chapter
4.1 (commencing with Section 39710) of Part 2 of Division 26 of the
Health and Safety Code, including the recommendations of the
investment plan, and Article 9.7 (commencing with Section 16428.8) of
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
Pursuant to these requirements, the Governor has developed and
submitted the Cap-and-Trade Expenditure Plan containing an annual
budget proposal for proceeds in the GGRF.
(6) As required by existing law, the use of the moneys
appropriated from the GGRF for the Cap-and-Trade Expenditure Plan
furthers the regulatory purposes of AB 32 by facilitating the
achievement of reductions in greenhouse gases in the state. The
Cap-and-Trade Expenditure Plan includes the following programmatic
investment areas:
(A) Transit, Affordable Housing, and Sustainable Communities.
(B) High-Speed Rail.
(C) Low Carbon Transportation.
(D) Energy Efficiency and Renewable Energy.
(E) Natural Resources and Waste Diversion.
(7) Programs included in the Cap-and-Trade Expenditure Plan
include the following:
(A) Expenditures for low-carbon transportation that include, but
are not limited to, cleaning up cars, trucks, buses, and freight
movement to meet federally mandated clean air requirements and
long-term greenhouse gas emissions reduction goals, funding for
heavy-duty freight, electric vehicle programs and rebates, and
off-road vehicles.
(B) Expenditures for energy efficiency and renewable energy that
include, but are not limited to, efficiency and renewable programs
for low-income and commercial or industrial users, projects for
agricultural energy, and funding for commercial scale technology
deployment and clean technology innovation.
(C) Expenditures for natural resources and waste diversion that
include, but are not limited to, urban forestry, parks, water
efficiency infrastructure projects, forestry and landscaping, wetland
development, waste diversion, and recycling.
(D) The Affordable Housing and Sustainable Communities Program,
which authorizes the Strategic Growth Council to fund land-use,
housing, transportation, and land preservation projects to support
infill and compact development that reduces greenhouse gas emissions.
These projects, which were described in the AB 32 Scoping Plan,
facilitate the reduction of the emissions of greenhouse gases by
improving mobility options and increasing infill development, which
decrease vehicle miles traveled and associated greenhouse gas and
other emissions, and by reducing land conversion, which would result
in emissions of greenhouse gases.
(E) The Transit and Intercity Rail Capital Program, which
authorizes the California Transportation Commission to provide
grants, based on determinations of the Transportation Agency, to fund
capital improvements and operational investments that will modernize
California's transit systems and intercity, commuter, and urban rail
systems to reduce emissions of greenhouse gases by reducing vehicle
miles traveled throughout California.
(F) The Low Carbon Transit Operations Program, which authorizes
the Controller to provide funding allocations based on project
evaluation from the Department of Transportation and the State Air
Resources Board, to fund operation investments to increase transit
ridership and reduce emissions of greenhouse gases by reducing
vehicle miles traveled throughout California.
(G) The High Speed Rail Program, which authorizes the High Speed
Rail Authority to utilize funds to begin the initial operating
segment and the Phase I Blended System, and further environmental and
design work on the statewide high speed rail system. The Safe,
Reliable High-Speed Passenger Train Bond Act for the 21st Century
(Chapter 20 (commencing with Section 2940) of Division 3 of the
Streets and Highways Code), approved by the voters in 2008, specifies
that the high-speed train system, once it is completed and becomes
operational, will contribute significantly toward the goal of
reducing emissions of greenhouse gases and other air pollutants and
will help reduce California's dependence on foreign energy sources.
As recognized in the AB 32 Scoping Plan, implementation of a high
speed rail system will facilitate the reduction of emissions of
greenhouse gases and other air pollutants by providing the foundation
for a large-scale transformation of California's transportation
infrastructure, displacing millions of vehicle miles traveled on the
road, reducing demand for air travel, and increasing train ridership
to ensure that the state's greenhouse gas emission reductions are
maintained and continued.
(H) A green state buildings program, which authorizes the
Department of General Services to assist with loan financing to
reduce the emissions of greenhouse gases by implementing energy
efficiency retrofit projects and renewable energy technology at state
buildings. These types of green building retrofit and renewable
energy projects were specifically encouraged in the AB 32 Scoping
Plan and will reduce greenhouse gas emissions by achieving energy
efficiency and reducing grid-based electricity purchases, including
the ability for building distributed generation projects.
(I) The Clean Vehicle Rebate Project, which authorizes the State
Air Resources Board to further promote the production and use of
zero-emission vehicles by providing rebates to provide incentives for
the purchase or lease of eligible zero-emission or plug-in hybrid
electric vehicles. Increasing the use of zero-emission and plug-in
hybrid electric vehicles was described in the AB 32 Scoping Plan as
an important method to replace conventional vehicles with
lower-emitting, including zero-emitting, vehicles, and thereby help
California meet its 2020 greenhouse gas emissions limit and
longer-term objective of climate stabilization.
(J) The Program Timberland Environmental Impact Report (PTEIR) for
Carbon Sequestration and Fuel Reduction Program, which seeks to
directly reduce emissions of greenhouse gases by increasing the
potential of California's timberlands to sequester carbon and
decrease emissions of greenhouse gases from wildfire by authorizing
the Department of Forestry and Fire Protection to provide grants and
other assistance to private landowners to improve the long-term
management of timberlands and improve the carbon sequestration
ability of these lands. Long-term uneven-aged management of private
timberlands within the state and the retention of large, old trees
can increase the ability of timberlands to sequester carbon through
increased growth and inventory and to convert carbon dioxide into
biomass through photosynthesis. Prudent management of timberlands can
decrease the potential for large wildland fires that release
greenhouse gases by creating forests that are less susceptible to
ignition and that reduce the intensity of wildland fires, thereby
allowing for more successful fire suppression efforts.
(K) The Waste Diversion and Greenhouse Gas Reduction Financial
Assistance Program, which authorizes the Department of Resources
Recycling and Recovery to implement a loan and grant program to
facilitate the reduction of greenhouse gas emissions by assisting
public and private entities in California to implement projects that
divert waste through reuse, recycling, and other diversion methods.
These recycling and waste diversion projects were highlighted in the
AB 32 Scoping Plan, and could include composting to use food waste as
feedstock, anaerobic digestion to produce biofuels and bioenergy,
designing and constructing facilities for processing recyclable
materials, and reducing emissions of greenhouse gases by more
efficiently avoiding the production of methane emissions associated
with land filling materials, while helping to provide low-carbon
fuels.
(8) The Cap-and-Trade Expenditure Plan investments to be funded,
whether by annual or continuous appropriation, including those
described in paragraph (7), also further certain additional
regulatory purposes of AB 32, including reducing air pollutants,
directing public and private investment toward disadvantaged
communities, increasing the diversity of energy sources, and creating
opportunities for businesses, public agencies, nonprofits, and other
community institutions to participate in and benefit from statewide
efforts to reduce emissions of greenhouse gases.
(9) The Cap-and-Trade Expenditure Plan investments to be funded,
whether by annual or continuous appropriation, including those
described in paragraph (7), are consistent with subdivision (b) of
Section 39712 of the Health and Safety Code in facilitating the
achievement of reduction of the emissions of greenhouse gases.
(10) The Cap-and-Trade Expenditure Plan investments to be funded,
whether by annual or continuous appropriation, including those
described in paragraph (7), are consistent with the Cap-and-Trade
Auction Proceeds Investment Plan: Fiscal Years 2013-14 through
2015-16, which included rail modernization, including high speed
rail, transit, housing, sustainable communities, green buildings,
waste diversion, low and zero emission passenger vehicles, and
improved forest management and practices to sequester carbon as
important areas for the investment of funds to reduce emissions of
greenhouse gases and further the regulatory purposes of AB 32.
(11) The Cap-and-Trade Expenditure Plan investments to be funded,
whether by annual or continuous appropriation, including those
described in paragraph (7), will satisfy the obligation under Section
39713 of the Health and Safety Code that the Investment Plan
developed and submitted to the Legislature allocates a minimum of 25
percent of the available moneys in the fund to projects that provide
benefits to disadvantaged communities identified pursuant to Section
39711 of the Health and Safety Code, and allocates a minimum of 10
percent of the available moneys in the fund to projects located
within those disadvantaged communities.
(12) All investments made pursuant to this act are consistent with
AB 32.
(b) It is the intent of the Legislature that the continuous
appropriations made pursuant to this act are subject to Chapter 4.1
(commencing with Section 39710) of Part 2 of Division 26 of the
Health and Safety Code, including the recommendations of the
investment plan, and Article 9.7 (commencing with Section 16428.8) of
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
SEC. 2. Section 12087.5 is added to the Government Code, to read:
12087.5. (a) The department shall develop and administer the
Energy Efficiency Low-Income Weatherization Program and expend moneys
appropriated by the Legislature for the proposes of the program.
(b) The department may develop requirements, guidelines, and
subgrantee contract provisions for the program.
(c) Before a subgrantee contract is executed for the provision of
local service, the department shall do both of the following:
(1) No less than 30 days before finalization of the program
guidelines, post the draft program guidelines on the department's
Internet Web site.
(2) Hold a public hearing to obtain public input on the draft
program guidelines with notice of the hearing published prominently
on the department's Internet Web site no less than 15 days before the
hearing.
(d) Chapter 3.5 (commencing with Section 11340) of Part 1 does not
apply to the development and adoption of program requirements,
guidelines, and subgrantee contract provisions pursuant to this
section.
SEC. 3. Section 16428.9 of the Government Code is amended to read:
16428.9. (a) Prior to expending any moneys appropriated to it by
the Legislature from the fund, a state agency shall prepare a record
consisting of all of the following:
(1) A description of each expenditure proposed to be made by the
state agency pursuant to the appropriation.
(2) A description of how a proposed expenditure will further the
regulatory purposes of Division 25.5 (commencing with Section 38500)
of the Health and Safety Code, including, but not limited to, the
limit established under Part 3 (commencing with Section 38550) and
other applicable requirements of law.
(3) A description of how a proposed expenditure will contribute to
achieving and maintaining greenhouse gas emission reductions
pursuant to Division 25.5 (commencing with Section 38500) of the
Health and Safety Code.
(4) A description of how the state agency considered the
applicability and feasibility of other nongreenhouse gas reduction
objectives of Division 25.5 (commencing with Section 38500) of the
Health and Safety Code.
(5) A description of how the state agency will document the result
achieved from the expenditure to comply with Division 25.5
(commencing with Section 35800) of the Health and Safety Code.
(b) The State Air Resources Board shall develop guidance on
reporting and quantification methods for all state agencies that
receive appropriations from the fund to ensure the requirements of
this section are met. Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 does not apply to the procedures developed
pursuant to this subdivision.
(c) Nothing in this section alters, amends, or otherwise modifies
in any manner Division 25.5 (commencing with Section 35800) of the
Health and Safety Code, including the authority of the State Air
Resources Board to adopt and implement a fee pursuant to that
division.
(d) If any expenditure of moneys from the fund for any measure or
project is determined by a court to be inconsistent with law, the
funding for the remaining measures or projects shall be severable and
shall not be affected.
SEC. 4. Section 19602.8 is added to the Government Code, to read:
19602.8. (a) Notwithstanding Section 18900, 18901, 18930,
18930.5, 18931, 18933, 18938.5, 18950, 19050, 19054.1, 19057.2,
19604, 19605, or any other law, but consistent with the merit
principles of subdivision (b) of Section 1 of Article VII of the
California Constitution, the Department of Forestry and Fire
Protection appointing authority may conduct examinations and make
appointments as specified in subdivision (b). The purpose of this
section is to provide the Department of Forestry and Fire Protection
with greater flexibility to match candidates to Forester Series and
Forestry Assistant classification vacancies, resulting in an
expedited selection process, cost avoidances to the department, and a
more expedited timeframe to carry out the people's business.
(b) The appointing authority of Department of Forestry and Fire
Protection may conduct a demonstration project consistent with the
authority in Section 19603 for competitive examinations on a position
specific basis for the Forester Series and Forestry Assistant
classifications and make appointments to positions based on a merit
process open to all persons meeting specific minimum qualifications
as agreed to by the board.
SEC. 5. Section 39711 of the Health and Safety Code is amended to
read:
39711. (a) The California Environmental Protection Agency shall
identify disadvantaged communities for investment opportunities
related to this chapter. These communities shall be identified based
on geographic, socioeconomic, public health, and environmental hazard
criteria, and may include, but are not limited to, either of the
following:
(1) Areas disproportionately affected by environmental pollution
and other hazards that can lead to negative public health effects,
exposure, or environmental degradation.
(2) Areas with concentrations of people that are of low income,
high unemployment, low levels of homeownership, high rent burden,
sensitive populations, or low levels of educational attainment.
(b) The California Environmental Protection Agency shall hold at
least one public workshop prior to the identification of
disadvantaged communities pursuant to this section.
(c) Chapter 3.5 (commencing with Section 11340) of the Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
identification of disadvantaged communities pursuant to this section.
SEC. 6. Section 39715 of the Health and Safety Code is amended to
read:
39715. (a) The state board, in consultation with the California
Environmental Protection Agency shall develop funding guidelines for
administering agencies that receive appropriations from the fund to
ensure the requirements of this chapter are met. The guidelines shall
include a component for how administering agencies should maximize
benefits for disadvantaged communities, as described in Section
39711.
(b) The state board shall provide an opportunity for public input
prior to finalizing the guidelines.
(c) Chapter 3.5 (commencing with Section 11340) of the Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
guidelines developed pursuant to this section.
SEC. 7. Section 39719 is added to the Health and Safety Code, to
read:
39719. (a) The Legislature shall appropriate the annual proceeds
of the fund for the purpose of reducing greenhouse gas emissions in
this state in accordance with the requirements of Section 39712.
(b) To carry out a portion of the requirements of subdivision (a),
annual proceeds are continuously appropriated for the following:
(1) Beginning in the 2015-16 fiscal year, and notwithstanding
Section 13340 of the Government Code, 35 percent of annual proceeds
are continuously appropriated, without regard to fiscal years, for
transit, affordable housing, and sustainable communities programs as
following:
(A) Ten percent of the annual proceeds of the fund is hereby
continuously appropriated to the Transportation Agency for the
Transit and Intercity Rail Capital Program created by Part 2
(commencing with Section 75220) of Division 44 of the Public
Resources Code.
(B) Five percent of the annual proceeds of the fund is hereby
continuously appropriated to the Low Carbon Transit Operations
Program created by Part 3 (commencing with Section 75230) of Division
44 of the Public Resources Code. Funds shall be allocated by the
Controller, according to requirements of the program, and pursuant to
the distribution formula in subdivision (b) or (c) of Section 99312
of, and Sections 99313 and 99314 of, the Public Utilities Code.
(C) Twenty percent of the annual proceeds of the fund is hereby
continuously appropriated to the Strategic Growth Council for the
Affordable Housing and Sustainable Communities Program created by
Part 1 (commencing with Section 75200) of Division 44 of the Public
Resources Code. Of the amount appropriated in this subparagraph, no
less than 10 percent of the annual proceeds, shall be expended for
affordable housing, consistent with the provisions of that program.
(2) Beginning in the 2015-16 fiscal year, notwithstanding Section
13340 of the Government Code, 25 percent of the annual proceeds of
the fund is hereby continuously appropriated to the High-Speed Rail
Authority for the following components of the initial operating
segment and Phase I Blended System as described in the 2012 business
plan adopted pursuant to Section 185033 of the Public Utilities Code:
(A) Acquisition and construction costs of the project.
(B) Environmental review and design costs of the project.
(C) Other capital costs of the project.
(D) Repayment of any loans made to the authority to fund the
project.
(c) In determining the amount of annual proceeds of the fund for
purposes of the calculation in subdivision (b), the funds subject to
Section 39719.1 shall not be included.
SEC. 8. Section 39719.1 is added to the Health and Safety Code, to
read:
39719.1. (a) Of the amount loaned from the fund to the General
Fund pursuant to Item 3900-011-3228 of Section 2.00 of the Budget Act
of 2013, four hundred million dollars ($400,000,000) shall be
available to the High-Speed Rail Authority pursuant to subdivision
(b).
(b) The portion of the loan from the fund to the General Fund
described in subdivision (a) shall be repaid to the fund as necessary
based on the financial needs of the high-speed rail project.
Beginning in the 2015-16 fiscal year, and in order to carry out the
goals of the fund in accordance with the requirements of Section
39712, the amounts of all the loan repayments, notwithstanding
Section 13340 of the Government Code, are continuously appropriated
from the fund to the High-Speed Rail Authority for the following
components of the initial operating segment and Phase I Blended
System as described in the 2012 business plan adopted pursuant to
Section 185033 of the Public Utilities Code:
(1) Acquisition and construction costs of the project.
(2) Environmental review and design costs of the project.
(3) Other capital costs of the project.
(4) Repayment of any loans made to the authority to fund the
project.
SEC. 9. Section 44091.1 of the Health and Safety Code is amended
to read:
44091.1. Commencing January 1, 2005, the fee specified in
paragraph (1) of subdivision (d) of Section 44060 shall be twelve
dollars ($12). The revenues from that fee shall be allocated as
follows:
(a) The revenues generated by six dollars ($6) of the fee shall be
deposited in the Air Pollution Control Fund, and shall be available
for expenditure, upon appropriation by the Legislature, to fund the
Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter
9 (commencing with Section 44275)) to the extent that the state
board or a participating district determines the moneys are expended
to mitigate or remediate the harm caused by the type of motor vehicle
on which the fee is imposed.
(b) (1) Except as provided for in paragraph (2), of the revenue
generated by the remaining six dollars ($6) of the fee, four dollars
($4) shall be deposited in the account created by Section 44091,
while the revenue generated by the remaining two dollars ($2) shall
be deposited in the Vehicle Inspection and Repair Fund and may be
expended, upon appropriation, for, among other things, the Clean
Vehicle Rebate Project established as a part of the Air Quality
Improvement Program pursuant to Article 3 (commencing with Section
44274) of Chapter 8.9.
(2) All revenue generated by the remaining six dollars ($6) of the
fee described in this subdivision that is imposed at first
registration of a motor vehicle and that is exempted under paragraph
(4) of subdivision (a) of Section 44011 shall be deposited in the
account created by Section 44091.
SEC. 10. Section 4475 of the Public Resources Code is amended to
read:
4475. (a) The director may enter into an agreement, including a
grant agreement, for prescribed burning or other hazardous fuel
reduction that is consistent with this chapter and the regulations of
the board with either the owner or any other person who has legal
control of any property, any public agency with regulatory or natural
resource management authority over any property that is included
within any wildland, or any nonprofit organization for any of the
following purposes, or any combination of those purposes:
(1) Prevention of high-intensity wildland fires through reduction
of the volume and continuity of wildland fuels.
(2) Watershed management.
(3) Range improvement.
(4) Vegetation management.
(5) Forest improvement.
(6) Wildlife habitat improvement.
(7) Air quality maintenance.
(b) An agreement shall not be entered into pursuant to this
section unless the director determines that the public benefits
estimated to be derived from the prescribed burning or other
hazardous fuel reduction pursuant to the agreement will be equal to
or greater than the foreseeable damage that could result from the
prescribed burning or other hazardous fuel reduction.
SEC. 11. Article 7.8 (commencing with Section 4598) is added to
Chapter 8 of Part 2 of Division 4 of the Public Resources Code, to
read:
Article 7.8. Program Timberland Environmental Impact Report
for Carbon Sequestration and Fuel Reduction Program
4598. The Legislature finds and declares all of the following:
(a) In order to meet the goals of the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code), it is necessary to increase the
carbon sequestration
potential of California's timberlands and to decrease carbon
emissions from wildland fires.
(b) Over one-half of the privately owned, commercial timberland in
the state is owned by nonindustrial landowners. These lands will be
increasingly important in the state's efforts to meet the goals of
the California Global Warming Solutions Act of 2006. The owners of
these lands often lack the forestry expertise, economic incentive, or
capital needed to make investments to decrease present and future
greenhouse gas emissions from their lands and the potential for
wildland fires that release greenhouse gases.
(c) Long-term uneven-aged management of private timberlands within
the state and the retention of large, old trees can increase the
ability of timberlands to sequester carbon through increased growth
and inventory and to convert carbon into oxygen through
photosynthesis.
(d) Prudent management of timberlands can decrease the potential
for large wildland fires, that release greenhouse gases, by creating
forests that are less susceptible to ignition and that reduce the
intensity of wildland fires, thereby allowing for more successful
fire suppression efforts.
(e) Recent projects have demonstrated the benefits of pursuing
program timberland environmental impact reports (PTEIRs), which
provide better long-term management guidance for forests than
single-project timber harvest plans.
(f) The state has an interest in securing the carbon sequestration
and fire protection benefits of prudent long-term management of
timberlands owned by nonindustrial landowners.
4598.1. (a) The purpose of this article is to encourage private
investments in, and improved long-term management of, timberlands and
resources within the state to promote carbon sequestration through
increased timber growth and inventory, reduced carbon emissions from
wildland fires by creating fire resiliency on private timberlands,
and the protection, maintenance, and enhancement of a productive and
stable forest resource system for the benefit of present and future
generations.
(b) The primary emphasis of the program established by this
article shall be upon increasing carbon sequestration in timberlands
and reducing carbon emissions from wildland fires; provided that,
consistent with this primary emphasis, the program shall also be
managed to maintain or improve all forest resources, such as fish and
wildlife habitat and soil resources, so that the overall effect of
the program is to improve the total forest resource system.
4598.2. (a) In furtherance of the purposes of this article, the
department may enter into agreements and make grants and take other
actions necessary to carry out the purposes of this article.
(b) (1) The PTEIR for carbon sequestration and fuel reduction
program conducted by the department shall encourage forest resource
improvements and otherwise facilitate good timberland management
through a program of financial and technical assistance to smaller
nonindustrial landowners and coalitions of smaller nonindustrial
landowners for the development of watershed-specific PTEIRs for
watersheds where the primary focus of the contemplated work is
reduction of greenhouse gases.
(2) The purpose of this program shall be to work cooperatively
with public and private landowners, particularly smaller
nonindustrial landowners, to upgrade the long-term management of
their lands and, thereby improve the ability of their lands to both
sequester carbon and to resist wildland fires that cause emissions of
carbon.
4598.3. As used in this article, the following terms shall have
the following meanings:
(a) "Eligible landowner" means any person who meets the conditions
set forth in Sections 4598.6 and 4598.8. Where ownership of
timberland and timber are not held by the same person, "landowner"
means either the person or persons owning the land or the person or
persons owning the timber.
(b) "Timberland" has the same meaning as defined in Section 4526.
(c) "PTEIR" means a program timberland environmental impact report
prepared pursuant to this article and Article 6.8 (commencing with
Section 1092) of Title 14 of the California Code of Regulations.
(d) "Smaller nonindustrial landowner" means an owner of 5,000
acres or less of timberland within the state.
4598.4. Agreements may be entered into and grants may be made by
the director pursuant to this article for the purpose of preparing
PTEIRs for projects that demonstrate potential to increase carbon
sequestration, decrease atmospheric carbon levels, and reduce the
potential for large wildland fires.
4598.5. (a) The director may enter into agreements, on behalf of
eligible landowners, pursuant to which the department will undertake
the preparation of PTEIRs. The department may enter into agreements
with the Department of General Services or third-party consultants to
assist in the preparation of PTEIRs.
(b) The department may provide grant funds to eligible landowners
in amounts not to exceed the direct costs to the eligible landowners
of preparing PTEIRs pursuant to this article.
(c) The department shall pay the costs of preparing the PTEIRs, or
provide grant funds to eligible landowners, from funds appropriated
to the department from the Greenhouse Gas Reduction Fund, pursuant to
Section 39718 of the Health and Safety Code.
(d) All expenditures made by the department pursuant to this
article shall be in a manner consistent with the criteria expressed
in Section 39712 of the Health and Safety Code and with the
investment plan developed by the Department of Finance pursuant to
Section 39716 of the Health and Safety Code.
4598.6. To be eligible for participation in an agreement or grant
pursuant to Section 4598.5, the following conditions shall be met:
(a) The application requirements established by the board are
satisfied.
(b) The landowner is a smaller nonindustrial landowner, as defined
in Section 4598.3. Where the timberland is owned jointly by more
than one individual, group, association, or corporation, as joint
tenants, tenants in common, tenants by the entirety, or otherwise,
the joint owners shall be considered, for the purposes of this
article, as one landowner.
(c) The parcel or parcels of timberland to which the PTEIR shall
apply is either:
(1) Within a timber preserve zone established pursuant to Article
6.7 (commencing with Section 51100) of Part 1 of Division 1 of Title
5 of the Government Code; provided, that the parcel of timberland is
not the subject of an application for rezoning or immediate rezoning
pursuant to Section 51120 or 51130 of the Government Code.
(2) Subject to a contract signed by the landowner providing that
the landowner agrees not to develop the parcel of timberland for uses
incompatible with the PTEIR within 20 years following the execution
of an agreement or the making of a grant pursuant to Section 4598.5.
The director shall record the contract in the office of the county
recorder in the county in which the parcel of timberland is located
and, upon recordation, the contract shall be binding upon any person
to whom the parcel of timberland is sold, assigned, devised, or
otherwise transferred by agreement or operation of law.
4598.7. Payments or grants pursuant to this article may be made
for work that is also the subject of payments or other assistance
provided pursuant to federal law; provided, that payments or grants
shall not be made pursuant to this article to satisfy landowner cost
share requirements of, or repay loans received pursuant to, federal
law; and provided, further, that the combined state and federal
payments or other assistance do not together exceed the amount of the
actual cost of the PTEIR to the landowner.
4598.8. In addition to the requirements of Section 4598.6, to be
eligible to participate in agreements or receive grants pursuant to
Section 4598.5, the landowner shall do all of the following:
(a) Submit a proposal to the department detailing the long-term
forest and land management plans for approval by the director. The
proposal shall set forth an analysis of timberland conditions and
capabilities relative to carbon sequestration and fire resiliency.
The proposal shall describe the management objectives and shall
provide for all of the following:
(1) Increased direct carbon sequestration through increased growth
and inventory and long-term uneven-aged management of the
timberlands.
(2) Improved resistance to wildland fire.
(3) Maintenance of large old trees across the watershed.
(4) Optimized timber growth potential of the timberland consistent
with maintaining carbon additionally over the baseline.
(5) Measurable metrics demonstrating greenhouse gas reductions
achieved by the long-term management to be analyzed in the PTEIR.
(b) Submit a project application in the form prescribed by the
director containing information the board deems necessary to evaluate
the PTEIR.
(c) Agree to comply with state or federal laws applicable to the
work carried out pursuant to any program timber harvesting plan
developed pursuant to a PTEIR.
(d) Agree to provide to the department, upon completion of each
program timber harvesting plan undertaken pursuant to a PTEIR, a
report detailing greenhouse gas reductions achieved by the plan.
(e) Agree to provide to the department any data or metrics on
greenhouse gas reductions as required by law.
4598.9. To carry out this article and to facilitate participation
in the program authorized by this article, the board may promulgate
regulations, guidelines, or publications the board deems appropriate.
Regulations promulgated by the board may be adopted as emergency
regulations. Regulations or emergency regulations adopted pursuant to
this section shall be adopted in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code). The adoption of emergency regulations shall be
deemed an emergency and necessary for the immediate preservation of
the public peace, health, and safety, or general welfare. The
regulations, guidelines, or publications shall be submitted to the
board for review or approval. Regulations, guidelines, or
publications shall specify all of the following:
(a) Criteria to determine timberlands that have demonstrated
potential for increased carbon sequestration and fire protection
benefits and, therefore, the landowners of those lands may be
eligible to enter into agreements or receive grant funds under
Section 4598.5.
(b) Guidelines further specifying the scope of projects for which
agreements may be entered into or grants made pursuant to this
article.
(c) Factors to be considered and information to be included in
proposals submitted pursuant to Section 4598.8.
(d) A standard application form for proposals submitted pursuant
to Section 4598.8.
(e) Guidelines for evaluation and approval of proposals to enter
into agreements or receive grant funds under Section 4598.5.
(f) Metrics for evaluating the greenhouse gas reductions to be
achieved by the long-term management of the timberlands pursuant to
the PTEIR.
(g) The form and content of reports detailing greenhouse gas
reductions as required by Section 4598.8.
(h) Any other matters as the board deems necessary for the
effective administration of this article.
SEC. 12. Section 12292 of the Public Resources Code is repealed.
SEC. 13. The heading of Chapter 5.7 (commencing with Section
25470) of Division 15 of the Public Resources Code is amended to
read:
CHAPTER 5.7. ENERGY EFFICIENT STATE PROPERTY REVOLVING FUND
AND ENERGY EFFICIENCY RETROFIT STATE REVOLVING FUND
SEC. 14. Section 25470 of the Public Resources Code is amended to
read:
25470. As used in this chapter:
(a) "Act" means the federal American Recovery and Reinvestment Act
of 2009 (Public Law 111-5).
(b) "Allocation" means a loan of funds by the Department of
General Services pursuant to the procedures specified in this
chapter.
(c) "Building" means any existing structure that includes a
heating or cooling system, or both. Additions to an existing building
shall be considered part of that building rather than a separate
building.
(d) "Department" means the Department of General Services.
(e) "Energy audit" means a determination of the energy consumption
characteristics of a building that does all of the following:
(1) Identifies the type, size, and energy use level of the
building and the major energy using systems of the building.
(2) Determines appropriate energy conservation maintenance and
operating procedures.
(3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures.
(f) "Energy conservation maintenance and operating procedure"
means a modification or modifications in the maintenance and
operations of a building, and any installations therein, based on the
use time schedule of the building that are designed to reduce energy
consumption in the building and that require no significant
expenditure of funds.
(g) "Energy conservation measure" means an installation or
modification of an installation in a building that is primarily
intended to reduce energy consumption or allow the use of a more
cost-effective energy source.
(h) "Energy conservation project" means an undertaking to acquire
and to install one or more energy conservation measures in a
building, and technical assistance in connection with that
undertaking.
(i) "Fund" means the Energy Efficient State Property Revolving
Fund or the Energy Efficiency Retrofit State Revolving Fund.
(j) "Project" means a purpose for which an allocation may be
requested and made under this chapter. Those purposes shall include
energy audits, energy conservation and operating procedures, and
energy conservation measures in existing buildings, and energy
conservation projects.
(k) "State agency" means a unit of state government, including any
department, agency, board, or commission under the State of
California.
(l) "State-owned building" means a building that is primarily
occupied by offices or agencies of a unit of state government and
includes those properties owned by the State of California.
SEC. 15. Section 25471.5 is added to the Public Resources Code, to
read:
25471.5. There is hereby established in the State Treasury the
Energy Efficiency Retrofit State Revolving Fund for the purposes of
implementing this chapter. Notwithstanding Section 13340 of the
Government Code, moneys in the Energy Efficiency Retrofit State
Revolving Fund are continuously appropriated to the department
without regard to fiscal years for loans for projects in or on
state-owned buildings and facilities to implement energy efficiency
retrofit projects and to utilize renewable energy technology to
achieve energy efficiency, reduce emissions of greenhouse gases, and
reduce grid-based electricity purchases.
SEC. 16. Section 25472 of the Public Resources Code is amended to
read:
25472. (a) The department, in consultation with the commission,
shall establish a process by which projects are identified and
funding is allocated.
(b) The department shall use money in the fund for projects that
will improve long-term energy efficiency and increase energy use
savings.
(c) The department shall comply with the requirements of the act
and implementing guidelines of the commission, including, but not
limited to, performance metrics, data collection, and reporting. All
projects shall be consistent with these requirements and guidelines.
(d) Funding prioritization shall be granted to those projects that
are cost effective and will yield immediate and sustainable energy
efficiency, energy conservation, energy use cost savings, and cost
avoidance.
(e) The department shall fund allowable projects through a loan to
the appropriate state agency or agencies occupying the building or
facility for which the project will be performed.
(f) The department shall determine a reasonable loan repayment
schedule that shall not exceed the life of the energy conservation
measure equipment, as determined by the department, or the lease term
of the building in which the energy conservation measure is
installed.
(g) Maximum loan amounts shall be based on estimated energy cost
savings that will allow state agencies to repay loan principal and
interest within the maximum repayment term specified in this section.
(h) The department shall periodically set interest rates on the
loans based on surveys of existing financial markets and at rates of
not less than 1 percent per annum.
(i) Annual loan repayment amounts shall be structured so as to
reflect the projected annualized energy cost avoidance estimated from
the completed project. The department may utilize a direct billing
methodology to recover loan repayments for completed projects.
SEC. 17. Section 25474 of the Public Resources Code is amended to
read:
25474. (a) Any repayment of loans made pursuant to this chapter
from the Energy Efficient State Property Revolving Fund, including
interest payments, and all interest earnings on or accruing to, any
money resulting from the implementation of this chapter in the Energy
Efficient State Property Revolving Fund, shall be deposited in that
fund and shall be available for the purposes of this chapter.
(b) The department may recover costs of administering the projects
and related costs through interest earnings up to 5 percent of the
project loan amounts. Project costs can include energy efficiency
improvements and costs associated with managing the project and
administering the loan program, including all reporting requirements.
SEC. 18. Section 25474.5 is added to the Public Resources Code, to
read:
25474.5. (a) Notwithstanding Section 39718 of the Health and
Safety Code, any repayment of loans made pursuant to this chapter
from the Energy Efficiency Retrofit State Revolving Fund, including
interest payments, and all interest earnings on or accruing to, any
money resulting from the implementation of this chapter in the Energy
Efficiency Retrofit State Revolving Fund, shall be deposited in that
fund and shall be available for the purposes of this chapter.
(b) The department may recover costs of administering the projects
and related costs through interest earnings up to 5 percent of the
project loan amounts. Project costs can include energy efficiency
improvements and costs associated with managing the project and
administering the loan program, including all reporting requirements.
SEC. 19. Chapter 22 (commencing with Section 42995) is added to
Part 3 of Division 30 of the Public Resources Code, to read:
CHAPTER 22. WASTE DIVERSION AND GREENHOUSE GAS REDUCTION
FINANCIAL ASSISTANCE
42995. For purposes of this chapter, the following terms have the
following meanings:
(a) "Loan fund" means the CalRecycle Greenhouse Gas Reduction
Revolving Loan Fund established pursuant to Section 42996.
(b) "Revolving loan program" means the CalRecycle Greenhouse Gas
Reduction Revolving Loan Program established pursuant to Section
42997.
42996. (a) The CalRecycle Greenhouse Gas Reduction Revolving Loan
Fund is hereby created in the State Treasury.
(b) Notwithstanding Section 13340 of the Government Code and
Section 39718 of the Health and Safety Code, the funds deposited in
the loan fund are hereby continuously appropriated, without regard to
fiscal year, to the department for expenditure without regard to
fiscal year.
(c) The sum of five million dollars ($5,000,000) is hereby
transferred from the Greenhouse Gas Reduction Fund, established
pursuant to Section 16428.8 of the Government Code, to the loan fund
for the 2014-15 fiscal year and an additional five million dollars
($5,000,000) for the 2015-16 fiscal year to be used by the department
for any of the following:
(1) To make loans pursuant to the revolving loan program.
(2) To pay costs necessary to protect the state's position as a
lender and creditor. These costs shall include, but are not limited
to, foreclosure expenses, auction fees, title searches, appraisals,
real estate brokerage fees, attorney's fees, mortgage payments,
insurance payments, utility costs, repair costs, removal and storage
costs for repossessed equipment and inventory, and additional
expenditures to purchase a senior lien in foreclosure or bankruptcy
proceedings.
(3) To pay costs to administer the revolving loan program, upon
appropriation by the Legislature.
(d) The Controller shall disburse moneys in the loan fund for the
purposes of this chapter, as authorized by the department.
42997. (a) The CalRecycle Greenhouse Gas Reduction Revolving Loan
Program is hereby established and shall be administered by the
department.
(b) (1) The department shall expend the moneys transferred
pursuant to subdivision (c) of Section 42996, and any additional
moneys appropriated by the Legislature for the purposes of this
subdivision, to provide loans to reduce greenhouse gas emissions by
promoting in-state development of infrastructure to process organics
and other recyclable materials into new value-added products. The
moneys shall be expended consistent with the requirements of Article
9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of
Division 4 of Title 2 of the Government Code and Chapter 4.1
(commencing with Section 39710) of Part 2 of Division 26 of the
Health and Safety Code.
(2) For a loan made pursuant to this subdivision, the department
shall expend the moneys in the loan fund to provide loans to public
and private entities located in the state for any of the following:
(A) Organics composting.
(B) Anaerobic digestion.
(C) Recyclable material manufacturing infrastructure projects or
other related activities that reduce greenhouse gas emissions.
(3) For purposes of this subdivision, eligible infrastructure
projects that reduce greenhouse gas emissions include, but are not
limited to, any of the following:
(A) Capital investments in new facilities and increased throughput
at existing facilities for activities, such as converting windrow
composting to aerated-static-pile composting to use food waste as
feedstock.
(B) Designing and constructing anaerobic digestion facilities to
produce biofuels and bioenergy.
(C) Designing and constructing facilities for processing
recyclable materials.
(4) For a loan made pursuant to this subdivision, both of the
following apply:
(A) The terms and conditions of an approved loan shall be
specified in a loan agreement and related documents between the
borrower and the department. These terms and conditions shall include
reporting requirements that include, but are not limited to,
reporting the information specified in Section 16428.9 of the
Government Code.
(B) The department shall approve only those loan applications that
demonstrate the applicant's ability to repay the loan.
(5) The department may establish additional requirements that it
determines to be necessary or useful to achieve the revolving loan
program's objectives, including, but not limited to, ensuring
repayment ability.
42998. (a) The department may establish and collect fees to fund
the costs of administering the revolving loan program, including, but
not limited to, an application fee and loan closing points.
(b) Moneys collected by the department from loan repayments and
fees shall be deposited in the loan fund. Loan repayments and fees
include, but are not limited to, any of the following:
(1) Principal and interest repayments.
(2) Fees and loan closing points.
(3) Recovery of collection costs.
(4) Income earned on an asset recovered pursuant to a loan
default.
(5) Moneys collected through foreclosure and other collection
actions.
42999. (a) Any additional funds appropriated by the Legislature
from the Greenhouse Gas Reduction Fund, established pursuant to
Section 16428.8 of the Government Code, to the department shall be
used to administer a grant program to provide financial assistance to
reduce greenhouse gas emissions by promoting in-state development of
infrastructure to process organics and other recyclable materials
into new value-added products. The moneys shall be expended
consistent with the requirements of Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code and Chapter 4.1 (commencing with Section 39710)
of Part 2 of Division 26 of the Health and Safety Code.
(b) For a grant made pursuant to this section, the department
shall expend the moneys to provide grants, incentive payments,
contracts, or other funding mechanisms to public and private entities
located in the state for any of the following:
(1) Organics composting.
(2) Anaerobic digestion.
(3) Recyclable material manufacturing infrastructure projects or
other related activities that reduce greenhouse gas emissions.
(c) For purposes of this section, eligible infrastructure projects
that reduce greenhouse gas emissions include, but are not limited
to, any of the following:
(1) Capital investments in new facilities and increased throughput
at existing facilities for activities, such as converting windrow
composting to aerated-static-pile composting to use food waste as
feedstock.
(2) Designing and constructing anaerobic digestion facilities to
produce biofuels and bioenergy.
(3) Designing and constructing facilities for processing
recyclable materials.
SEC. 20. Section 75121 of the Public Resources Code is amended to
read:
75121. (a) The Strategic Growth Council is hereby established in
state government and it shall consist of the Director of State
Planning and Research, the Secretary of the Natural Resources Agency,
the Secretary for Environmental Protection, the Secretary of
Transportation, the Secretary of California Health and Human
Services, the Secretary of Business, Consumer Services, and Housing,
the Secretary of Food and Agriculture, one member of the public
appointed by the Speaker of the Assembly, one member of the public
appointed by the Senate Committee on Rules, and one member of the
public to be appointed by the Governor. The public members shall have
a background in land use planning, local government, resource
protection and management, or community development or revitalization
and shall serve at the pleasure of the appointing authority.
(b) Staff for the council shall be reflective of the council's
membership.
SEC. 21. Division 44 (commencing with Section 75200) is
added to the Public Resources Code, to read:
DIVISION 44. Transit, Affordable Housing, and Sustainable
Communities Program
PART 1. Affordable Housing and Sustainable Communities
CHAPTER 1. GENERAL PROVISIONS
75200. For the purposes of this part, the following terms have
the following meanings:
(a) "Council" means the Strategic Growth Council established
pursuant to Section 75121.
(b) "Disadvantaged communities" means communities identified as
disadvantaged communities pursuant to Section 39711 of the Health and
Safety Code.
(c) "Program" means the Affordable Housing and Sustainable
Communities Program established pursuant to Section 75210.
75200.1. Consistent with Section 75125, the council, in
consultation with the State Air Resources Board, shall review and
coordinate the activities of member agencies of the council for the
programs included in this part. The council shall review these
programs, including grant guidelines of each program, consistent with
Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26
of the Health and Safety Code, including the recommendations of the
investment plan, Article 9.7 (commencing with Section 16428.8) of
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code,
and Chapter 4.2 (commencing with Section 21155) of Division 13 of
this code.
CHAPTER 2. AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES
PROGRAM
75210. The council shall develop and administer the Affordable
Housing and Sustainable Communities Program to reduce greenhouse gas
emissions through projects that implement land use, housing,
transportation, and agricultural land preservation practices to
support infill and compact development, and that support related and
coordinated public policy objectives, including the following:
(a) Reducing air pollution.
(b) Improving conditions in disadvantaged communities.
(c) Supporting or improving public health and other cobenefits as
defined in Section 39712 of the Health and Safety Code.
(d) Improving connectivity and accessibility to jobs, housing, and
services.
(e) Increasing options for mobility, including the implementation
of the Active Transportation Program established pursuant to Section
2380 of the Streets and Highways Code.
(f) Increasing transit ridership.
(g) Preserving and developing affordable housing for lower income
households, as defined in Section 50079.5 of the Health and Safety
Code.
(h) Protecting agricultural lands to support infill development.
75211. To be eligible for funding pursuant to the program, a
project shall do all of the following:
(a) Demonstrate that it will achieve a reduction in greenhouse gas
emissions.
(b) Support implementation of an adopted or draft sustainable
communities strategy or, if a sustainable communities strategy is not
required for a region by law, a regional plan that includes policies
and programs to reduce greenhouse gas emissions.
(c) Demonstrate consistency with the state planning priorities
established pursuant to Section 65041.1 of the Government Code.
75212. Projects eligible for funding pursuant to the program
include any of the following:
(a) Intermodal, affordable housing projects that support infill
and compact development.
(b) Transit capital projects and programs supporting transit
ridership.
(c) Active transportation capital projects that qualify under the
Active Transportation Program, including pedestrian and bicycle
facilities and supportive infrastructure, including connectivity to
transit stations.
(d) Noninfrastructure-related active transportation projects that
qualify under the Active Transportation Program, including activities
that encourage active transportation goals conducted in conjunction
with infrastructure improvement projects.
(e) Transit-oriented development projects, including affordable
housing and infrastructure at or near transit stations or connecting
those developments to transit stations.
(f) Capital projects that implement local complete streets
programs.
(g) Other projects or programs designed to reduce greenhouse gas
emissions and other criteria air pollutants by reducing automobile
trips and vehicle miles traveled within a community.
(h) Acquisition of easements or other approaches or tools that
protect agricultural lands that are under pressure of being converted
to nonagricultural uses, particularly those adjacent to areas most
at risk of urban or suburban sprawl or those of special environmental
significance.
(i) Planning to support implementation of a sustainable
communities strategy, including implementation of local plans
supporting greenhouse gas emissions reduction efforts and promoting
infill and compact development.
75213. A project eligible for funding pursuant to the program
shall be encouraged to promote the objectives of Section 75210, and
economic growth, reduce public fiscal costs, support civic
partnerships and stakeholder engagement, and integrate and leverage
existing housing, transportation, and land use programs and
resources.
75214. In implementing the program, the council shall support the
goals established pursuant to Chapter 830 of the Statutes of 2012 by
ensuring a programmatic goal of expending 50 percent of program
expenditure for projects benefiting disadvantaged communities. To the
extent feasible, the council shall coordinate outreach to promote
access and program participation in disadvantaged communities.
75215. (a) Prior to awarding funds under the program, the
council, in coordination with the member agencies and departments of
the council, the State Air Resources Board, and other state entities,
as needed, shall develop guidelines and selection criteria for the
implementation of the program.
(b) Prior to adoption of the guidelines and the selection
criteria, the council shall conduct at least two public workshops to
receive and consider public comments. One workshop shall be held at a
location in northern California and one workshop shall be held at a
location in southern California.
(c) The council shall publish the draft guidelines and selection
criteria on its Internet Web site at least 30 days prior to the
public meetings.
(d) In adopting the guidelines and selection criteria, the council
shall consider the comments from local governments, regional
agencies, and other stakeholders. The council shall conduct outreach
to disadvantaged communities to encourage comments on the draft
guidelines from those communities.
(e) Program guidelines may be revised by the council to reflect
changes in program focus or need. Outreach to stakeholders shall be
conducted, pursuant to subdivisions (a), (b), and (c) before the
council adopts changes to guidelines.
(f) Upon the adoption of the guidelines and selection criteria,
the council shall, pursuant to Section 9795 of the Government Code,
submit copies of the guidelines to the fiscal and appropriate policy
committees of the Legislature.
(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development and adoption of the guidelines and selection criteria
pursuant to this section.
75216. (a) The council shall leverage the programmatic and
administrative expertise of relevant state departments and agencies
in implementing the program.
(b) The council shall coordinate with the metropolitan planning
organizations and other regional agencies to identify and recommend
projects within their respective jurisdictions that best reflect the
goals and objectives of this division.
75217. The executive director of the council shall report the
progress on the implementation of the program in its annual report
required pursuant to subdivision (e) of Section 75125.
PART 2. Transit and Intercity Rail Capital Program
75220. (a) The Transit and Intercity Rail Capital Program is
hereby created to fund capital improvements and operational
investments that will reduce greenhouse gas emissions, modernize
California's intercity, commuter, and urban rail systems to achieve
all of the following policy objectives:
(1) Reduce greenhouse gas emissions.
(2) Expand and improve rail service to increase ridership.
(3) Integrate the rail service of the state's various rail
operators, including integration with the high-speed rail system.
(4) Improve rail safety.
(b) The Transportation Agency shall evaluate applications for
funding under the program consistent with the criteria set forth in
this chapter and prepare a list of projects recommended for funding.
The list may be revised at any time.
(c) The California Transportation Commission shall award grants to
applicants pursuant to the list prepared by the Transportation
Agency.
75221. (a) Projects eligible for funding under the program
include, but are not limited to, all of the following:
(1) Rail capital projects, including acquisition of rail cars and
locomotives, that expand, enhance, and improve existing rail systems
and connectivity to existing and future rail systems, including the
high-speed rail system.
(2) Intercity and commuter rail projects that increase service
levels, improve reliability, and decrease travel times.
(3) Rail integration implementation, including integrated
ticketing and scheduling systems, shared-use corridors, related
planning efforts, and other service integration initiatives.
(4) Bus rapid transit and other bus transit investments to
increase ridership and reduce greenhouse gas emissions.
(b) In order to be eligible for funding under the program, a
project shall demonstrate that it will achieve a reduction in
greenhouse gas emissions.
(c) The program shall have a programmatic goal of providing at
least 25 percent of available funding to projects benefiting
disadvantaged communities, consistent with the objectives of Chapter
830 of the Statutes of 2012.
(d) In evaluating grant applications for funding, the
Transportation Agency shall consider both of the following:
(1) The cobenefits of projects that support implementation of
sustainable communities strategies through one or more of the
following:
(A) Reducing auto vehicles miles traveled through growth in rail
ridership.
(B) Promoting housing development in the vicinity of rail
stations.
(C) Expanding existing rail and public transit systems.
(D) Implementing clean vehicle technology.
(E) Promoting active transportation.
(F) Improving public health.
(2) The project priorities developed through the collaboration of
two or more rail operators and any memoranda of understanding between
state agencies and local or regional rail operators.
(3) Geographic equity.
(4) Consistency with the adopted sustainable communities
strategies and the recommendations of regional agencies.
(e) Eligible applicants under the program shall be public
agencies, including joint powers agencies, that operate existing or
planned regularly scheduled intercity or commuter passenger rail
service or urban rail transit service. An eligible applicant may
partner with transit operators that do not operate rail service on
projects to integrate ticketing and scheduling with bus or ferry
service.
(f) A recipient of funds under the program may combine funding
from the program with other funding, including, but not limited to,
the State Transportation Improvement Program, the Low Carbon Transit
Operations Program, the State Air Resources Board clean vehicle
program, and state transportation bond funds.
75222. (a) Applications for grants under the program shall be
submitted to the Transportation Agency for evaluation in accordance
with procedures and program guidelines adopted by the agency.
(b) The Transportation Agency shall conduct at least two public
workshops on draft program guidelines containing selection criteria
prior to adoption and shall post the draft guidelines on the agency's
Internet Web site at least 30 days prior to the first public
workshop. Concurrent with the posting, the agency shall transmit the
draft guidelines to the fiscal committees and to the appropriate
policy committees of the Legislature.
(c) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development and adoption of procedures and program guidelines for the
program pursuant to this section.
PART 3. Low Carbon Transit Operations Program
75230. (a) The Low Carbon Transit Operations Program is hereby
created to provide operating and capital assistance for transit
agencies to reduce greenhouse gas emissions and improve mobility,
with a priority on serving disadvantaged communities.
(b) Funding for the program is continuously appropriated pursuant
to Section 39719 of the Health and Safety Code from the Greenhouse
Gas Reduction Fund established pursuant to Section 16428.8 of the
Government Code.
(c) Funding shall be allocated by the Controller consistent with
the requirements of this part and with Section 39719 of the Health
and Safety Code, upon a determination by the Department of
Transportation that the expenditures proposed by a transit agency
meet the requirements of this part and guidelines developed pursuant
to subdivision (f), and the amount of funding requested that is
currently available.
(d) Moneys for the program shall be expended to provide transit
operating or capital assistance that meets all of the following
criteria:
(1) Expenditures supporting new or expanded bus or rail services,
or expanded intermodal transit facilities, and may include equipment
acquisition, fueling, and maintenance, and other costs to operate
those services or facilities.
(2) The recipient transit agency demonstrates that each
expenditure directly enhances or expands transit service to increase
mode share.
(3) The recipient transit agency demonstrates that each
expenditure reduces greenhouse gas emissions.
(e) For transit agencies whose service areas include disadvantaged
communities as identified pursuant to Section 39711 of the Health
and Safety Code, at least 50 percent of the total moneys received
pursuant to this chapter shall be expended on projects or services
that meet requirements of subdivision (d) and benefit the
disadvantaged communities, consistent with the guidance developed by
the State Air Resources Board pursuant to Section 39715 of the Health
and Safety Code.
(f) The Department of Transportation, in coordination with the
State Air Resources Board, shall develop guidelines that describe the
methodologies that recipient transit agencies shall use to
demonstrate that proposed expenditures will meet the criteria in
subdivisions (d) and (e) and establish the reporting requirements for
documenting ongoing compliance with those criteria.
(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development of guidelines for the program pursuant to this section.
(h) A transit agency shall submit the following information to the
Department of Transportation before seeking a disbursement of funds
pursuant to this part:
(1) A list of proposed expense types for anticipated funding
levels.
(2) The documentation required by the guidelines in developed
pursuant to subdivision (f) to demonstrate compliance with
subdivisions (d) and (e).
(i) Before authorizing the disbursement of funds, the department,
in coordination with the State Air Resources Board, shall determine
the eligibility, in whole or in part, of the proposed list of expense
types, based on the documentation provided by the recipient transit
agency to ensure ongoing compliance with the guidelines developed
pursuant to subdivision (f).
(j) The department shall notify the Controller of approved
expenditures for each transit agency, and the amount of the
allocation for each transit agency determined to be available at that
time of approval.
(k) The recipient transit agency shall provide annual reports to
the Department of Transportation, in the format and manner prescribed
by the department, consistent with the internal administrative
procedures for use of fund proceeds developed by the State Air
Resources Board.
( l ) The Department of Transportation and recipient
transit agencies shall comply with the guidelines developed by the
State Air Resources Board pursuant to Section 39715 of the Health and
Safety Code to ensure that the requirements of Section 39714 of the
Health and Safety Code are met to maximize the benefits to
disadvantaged communities as described in Section 39711 of the Health
and Safety Code.
SEC. 22. Section 2827 of the Public Utilities Code is amended to
read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering combined with net surplus compensation,
co-energy metering, and wind energy co-metering for eligible
customer-generators is one way to encourage substantial private
investment in renewable energy resources, stimulate in-state economic
growth, reduce demand for electricity during peak consumption
periods, help stabilize California's energy supply infrastructure,
enhance the continued diversification of California's energy resource
mix, reduce interconnection and administrative costs for electricity
suppliers, and encourage conservation and efficiency.
(b) As used in this section, the following terms have the
following meanings:
(1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
(2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
(3) "Electric utility" means an electrical corporation, a local
publicly owned electric utility, or an electrical cooperative, or any
other entity, except an electric service provider, that offers
electrical service. This section shall not apply to a local publicly
owned electric utility that serves more than 750,000 customers and
that also conveys water to its customers.
(4) (A) "Eligible customer-generator" means a residential
customer, small commercial customer as defined in subdivision (h) of
Section 331, or commercial, industrial, or agricultural customer of
an electric utility, who uses a renewable electrical generation
facility, or a combination of those facilities, with a total capacity
of not more than one megawatt, that is located on the customer's
owned, leased, or rented premises, and is interconnected and operates
in parallel with the electrical grid, and is intended primarily to
offset part or all of the customer's own electrical requirements.
(B) (i) Notwithstanding subparagraph (A), "eligible
customer-generator" includes the Department of Corrections and
Rehabilitation using a renewable electrical generation technology, or
a combination of renewable electrical generation technologies, with
a total capacity of not more than eight megawatts, that is located on
the department's owned, leased, or rented premises, and is
interconnected and operates in parallel with the electrical grid, and
is intended primarily to offset part or all of the facility's own
electrical requirements. The amount of any wind generation exported
to the electrical grid shall not exceed 1.35 megawatt at any time.
(ii) Notwithstanding any other law, an electrical corporation
shall be afforded a prudent but necessary time, as determined by the
executive director of the commission, to study the impacts of a
request for interconnection of a renewable generator with a capacity
of greater than one megawatt under this subparagraph. If the study
reveals the need for upgrades to the transmission or distribution
system arising solely from the interconnection, the electrical
corporation shall be afforded the time necessary to complete those
upgrades before the interconnection and those costs shall be borne by
the customer-generator. Upgrade projects shall comply with
applicable state and federal requirements, including requirements of
the Federal Energy Regulatory Commission.
(5) "Large electrical corporation" means an electrical corporation
with more than 100,000 service connections in California.
(6) "Net energy metering" means measuring the difference between
the electricity supplied through the electrical grid and the
electricity generated by an eligible customer-generator and fed back
to the electrical grid over a 12-month period as described in
subdivisions (c) and (h).
(7) "Net surplus customer-generator" means an eligible
customer-generator that generates more electricity during a 12-month
period than is supplied by the electric utility to the eligible
customer-generator during the same 12-month period.
(8) "Net surplus electricity" means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed by
that eligible customer-generator.
(9) "Net surplus electricity compensation" means a per
kilowatthour rate offered by the electric utility to the net surplus
customer-generator for net surplus electricity that is set by the
ratemaking authority pursuant to subdivision (h).
(10) "Ratemaking authority" means, for an electrical corporation,
the commission, for an electrical cooperative, its ratesetting body
selected by its shareholders or members, and for a local publicly
owned electric utility, the local elected body responsible for
setting the rates of the local publicly owned utility.
(11) "Renewable electrical generation facility" means a facility
that generates electricity from a renewable source listed in
paragraph (1) of subdivision (a) of Section 25741 of the Public
Resources Code. A small hydroelectric generation facility is not an
eligible renewable electrical generation facility if it will cause an
adverse impact on instream beneficial uses or cause a change in the
volume or timing of streamflow.
(12) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electrical
grid and the electricity generated by an eligible customer-generator
and fed back to the electrical grid over a 12-month period is as
described in subdivision (h). Wind energy co-metering shall be
accomplished pursuant to Section 2827.8.
(c) (1) Except as provided in paragraph (4) and in Section 2827.1,
every electric utility shall develop a standard contract or tariff
providing for net energy metering, and shall make this standard
contract or tariff available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
exceeds 5 percent of the electric utility's aggregate customer peak
demand. Net energy metering shall be accomplished using a single
meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the eligible customer-generator, at the expense of the electric
utility, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the eligible
customer-generator pursuant to subdivision (h), or to collect
generating system performance information for research purposes
relative to a renewable electrical generation facility. If the
existing electrical meter of an eligible customer-generator is not
capable of measuring the flow of electricity in two directions, the
eligible customer-generator shall be responsible for all expenses
involved in purchasing and installing a meter that is able to measure
electricity flow in two directions. If an additional meter or meters
are installed, the net energy metering calculation shall yield a
result identical to that of a single meter. An eligible
customer-generator that is receiving service other than through the
standard contract or tariff may elect to receive service through the
standard contract or tariff until the electric utility reaches the
generation limit set forth in this paragraph. Once the generation
limit is reached, only eligible customer-generators that had
previously elected to receive service pursuant to the standard
contract or tariff have a right to continue to receive service
pursuant to the standard contract or tariff. Eligibility for net
energy metering does not limit an eligible customer-generator's
eligibility for any other rebate, incentive, or credit provided by
the electric utility, or pursuant to any governmental program,
including rebates and incentives provided pursuant to the California
Solar Initiative.
(2) An electrical corporation shall include a provision in the net
energy metering contract or tariff requiring that any customer with
an existing electrical generating facility and meter who enters into
a new net energy metering contract shall provide an inspection report
to the electrical corporation, unless the electrical generating
facility and meter have been installed or inspected within the
previous three years. The inspection report shall be prepared by a
California licensed contractor who is not the owner or operator of
the facility and meter. A California licensed electrician shall
perform the inspection of the electrical portion of the facility and
meter.
(3) (A) On an annual basis, every electric utility shall make
available to the ratemaking authority information on the total rated
generating capacity used by eligible customer-generators that are
customers of that provider in the provider's service area and the net
surplus electricity purchased by the electric utility pursuant to
this section.
(B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electrical corporation,
local publicly owned electrical utility, or electrical cooperative,
in which the eligible customer-generator has net energy metering.
(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electric
utilities, and for using that information to determine when, pursuant
to paragraphs (1) and (4), an electric utility is not obligated to
provide net energy metering to
additional eligible customer-generators in its service area.
(4) (A) An electric utility that is not a large electrical
corporation is not obligated to provide net energy metering to
additional eligible customer-generators in its service area when the
combined total peak demand of all electricity used by eligible
customer-generators served by all the electric utilities in that
service area furnishing net energy metering to eligible
customer-generators exceeds 5 percent of the aggregate customer peak
demand of those electric utilities.
(B) The commission shall require every large electrical
corporation to make the standard contract or tariff available to
eligible customer-generators, continuously and without interruption,
until such times as the large electrical corporation reaches its net
energy metering program limit or July 1, 2017, whichever is earlier.
A large electrical corporation reaches its program limit when the
combined total peak demand of all electricity used by eligible
customer-generators served by all the electric utilities in the large
electrical corporation's service area furnishing net energy metering
to eligible customer-generators exceeds 5 percent of the aggregate
customer peak demand of those electric utilities. For purposes of
calculating a large electrical corporation's program limit,
"aggregate customer peak demand" means the highest sum of the
noncoincident peak demands of all of the large electrical corporation'
s customers that occurs in any calendar year. To determine the
aggregate customer peak demand, every large electrical corporation
shall use a uniform method approved by the commission. The program
limit calculated pursuant to this paragraph shall not be less than
the following:
(i) For San Diego Gas and Electric Company, when it has made 607
megawatts of nameplate generating capacity available to eligible
customer-generators.
(ii) For Southern California Edison Company, when it has made
2,240 megawatts of nameplate generating capacity available to
eligible customer-generators.
(iii) For Pacific Gas and Electric Company, when it has made 2,409
megawatts of nameplate generating capacity available to eligible
customer-generators.
(C) Every large electrical corporation shall file a monthly report
with the commission detailing the progress toward the net energy
metering program limit established in subparagraph (B). The report
shall include separate calculations on progress toward the limits
based on operating solar energy systems, cumulative numbers of
interconnection requests for net energy metering eligible systems,
and any other criteria required by the commission.
(D) Beginning July 1, 2017, or upon reaching the net metering
program limit of subparagraph (B), whichever is earlier, the
obligation of a large electrical corporation to provide service
pursuant to a standard contract or tariff shall be pursuant to
Section 2827.1 and applicable state and federal requirements.
(d) Every electric utility shall make all necessary forms and
contracts for net energy metering and net surplus electricity
compensation service available for download from the Internet.
(e) (1) Every electric utility shall ensure that requests for
establishment of net energy metering and net surplus electricity
compensation are processed in a time period not exceeding that for
similarly situated customers requesting new electric service, but not
to exceed 30 working days from the date it receives a completed
application form for net energy metering service or net surplus
electricity compensation, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction.
(2) Every electric utility shall ensure that requests for an
interconnection agreement from an eligible customer-generator are
processed in a time period not to exceed 30 working days from the
date it receives a completed application form from the eligible
customer-generator for an interconnection agreement.
(3) If an electric utility is unable to process a request within
the allowable timeframe pursuant to paragraph (1) or (2), it shall
notify the eligible customer-generator and the ratemaking authority
of the reason for its inability to process the request and the
expected completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365, or Section
365.1, with an electric service provider that does not provide
distribution service for the direct transactions, the electric
utility that provides distribution service for the eligible
customer-generator is not obligated to provide net energy metering or
net surplus electricity compensation to the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 or 365.1 with an
electric service provider, and the customer is an eligible
customer-generator, the electric utility that provides distribution
service for the direct transactions may recover from the customer's
electric service provider the incremental costs of metering and
billing service related to net energy metering and net surplus
electricity compensation in an amount set by the ratemaking
authority.
(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract or
tariff shall be identical, with respect to rate structure, all
retail rate components, and any monthly charges, to the contract or
tariff to which the same customer would be assigned if the customer
did not use a renewable electrical generation facility, except that
eligible customer-generators shall not be assessed standby charges on
the electrical generating capacity or the kilowatthour production of
a renewable electrical generation facility. The charges for all
retail rate components for eligible customer-generators shall be
based exclusively on the customer-generator's net kilowatthour
consumption over a 12-month period, without regard to the eligible
customer-generator's choice as to from whom it purchases electricity
that is not self-generated. Any new or additional demand charge,
standby charge, customer charge, minimum monthly charge,
interconnection charge, or any other charge that would increase an
eligible customer-generator's costs beyond those of other customers
who are not eligible customer-generators in the rate class to which
the eligible customer-generator would otherwise be assigned if the
customer did not own, lease, rent, or otherwise operate a renewable
electrical generation facility is contrary to the intent of this
section, and shall not form a part of net energy metering contracts
or tariffs.
(h) For eligible customer-generators, the net energy metering
calculation shall be made by measuring the difference between the
electricity supplied to the eligible customer-generator and the
electricity generated by the eligible customer-generator and fed back
to the electrical grid over a 12-month period. The following rules
shall apply to the annualized net metering calculation:
(1) The eligible residential or small commercial
customer-generator, at the end of each 12-month period following the
date of final interconnection of the eligible customer-generator's
system with an electric utility, and at each anniversary date
thereafter, shall be billed for electricity used during that 12-month
period. The electric utility shall determine if the eligible
residential or small commercial customer-generator was a net consumer
or a net surplus customer-generator during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric utility exceeds the
electricity generated by the eligible residential or small commercial
customer-generator during that same period, the eligible residential
or small commercial customer-generator is a net electricity consumer
and the electric utility shall be owed compensation for the eligible
customer-generator's net kilowatthour consumption over that 12-month
period. The compensation owed for the eligible residential or small
commercial customer-generator's consumption shall be calculated as
follows:
(A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates,
any net monthly consumption of electricity shall be calculated
according to the terms of the contract or tariff to which the same
customer would be assigned to, or be eligible for, if the customer
was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electric utility would charge for the baseline
quantity of electricity during that billing period, and if the number
of kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
utility would charge for electricity over the baseline quantity
during that billing period.
(B) For all eligible customer-generators taking service under
contracts or tariffs employing time-of-use rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned, or be eligible for, if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric utility would charge for retail
kilowatthour sales during that same time-of-use period. If the
eligible customer-generator's time-of-use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (1)
of subdivision (c) shall apply.
(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electric utility for net consumption of
electricity or credits owed to the eligible customer-generator for
net generation of electricity shall be carried forward as a monetary
value until the end of each 12-month period. For all eligible
commercial, industrial, and agricultural customer-generators, the net
balance of moneys owed shall be paid in accordance with the electric
utility's normal billing cycle, except that if the eligible
commercial, industrial, or agricultural customer-generator is a net
electricity producer over a normal billing cycle, any excess
kilowatthours generated during the billing cycle shall be carried
over to the following billing period as a monetary value, calculated
according to the procedures set forth in this section, and appear as
a credit on the eligible commercial, industrial, or agricultural
customer-generator's account, until the end of the annual period when
paragraph (3) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric utility
during that same period, the eligible customer-generator is a net
surplus customer-generator and the electric utility, upon an
affirmative election by the net surplus customer-generator, shall
either (A) provide net surplus electricity compensation for any net
surplus electricity generated during the prior 12-month period, or
(B) allow the net surplus customer-generator to apply the net surplus
electricity as a credit for kilowatthours subsequently supplied by
the electric utility to the net surplus customer-generator. For an
eligible customer-generator that does not affirmatively elect to
receive service pursuant to net surplus electricity compensation, the
electric utility shall retain any excess kilowatthours generated
during the prior 12-month period. The eligible customer-generator not
affirmatively electing to receive service pursuant to net surplus
electricity compensation shall not be owed any compensation for the
net surplus electricity unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatthours. Every electric utility shall provide notice to
eligible customer-generators that they are eligible to receive net
surplus electricity compensation for net surplus electricity, that
they must elect to receive net surplus electricity compensation, and
that the 12-month period commences when the electric utility receives
the eligible customer-generator's election. For an electric utility
that is an electrical corporation or electrical cooperative, the
commission may adopt requirements for providing notice and the manner
by which eligible customer-generators may elect to receive net
surplus electricity compensation.
(4) (A) An eligible customer-generator with multiple meters may
elect to aggregate the electrical load of the meters located on the
property where the renewable electrical generation facility is
located and on all property adjacent or contiguous to the property on
which the renewable electrical generation facility is located, if
those properties are solely owned, leased, or rented by the eligible
customer-generator. If the eligible customer-generator elects to
aggregate the electric load pursuant to this paragraph, the electric
utility shall use the aggregated load for the purpose of determining
whether an eligible customer-generator is a net consumer or a net
surplus customer-generator during a 12-month period.
(B) If an eligible customer-generator chooses to aggregate
pursuant to subparagraph (A), the eligible customer-generator shall
be permanently ineligible to receive net surplus electricity
compensation, and the electric utility shall retain any kilowatthours
in excess of the eligible customer-generator's aggregated electrical
load generated during the 12-month period.
(C) If an eligible customer-generator with multiple meters elects
to aggregate the electrical load of those meters pursuant to
subparagraph (A), and different rate schedules are applicable to
service at any of those meters, the electricity generated by the
renewable electrical generation facility shall be allocated to each
of the meters in proportion to the electrical load served by those
meters. For example, if the eligible customer-generator receives
electric service through three meters, two meters being at an
agricultural rate that each provide service to 25 percent of the
customer's total load, and a third meter, at a commercial rate, that
provides service to 50 percent of the customer's total load, then 50
percent of the electrical generation of the eligible renewable
generation facility shall be allocated to the third meter that
provides service at the commercial rate and 25 percent of the
generation shall be allocated to each of the two meters providing
service at the agricultural rate. This proportionate allocation shall
be computed each billing period.
(D) This paragraph shall not become operative for an electrical
corporation unless the commission determines that allowing eligible
customer-generators to aggregate their load from multiple meters will
not result in an increase in the expected revenue obligations of
customers who are not eligible customer-generators. The commission
shall make this determination by September 30, 2013. In making this
determination, the commission shall determine if there are any public
purpose or other noncommodity charges that the eligible
customer-generators would pay pursuant to the net energy metering
program as it exists prior to aggregation, that the eligible
customer-generator would not pay if permitted to aggregate the
electrical load of multiple meters pursuant to this paragraph.
(E) A local publicly owned electric utility or electrical
cooperative shall only allow eligible customer-generators to
aggregate their load if the utility's ratemaking authority determines
that allowing eligible customer-generators to aggregate their load
from multiple meters will not result in an increase in the expected
revenue obligations of customers that are not eligible
customer-generators. The ratemaking authority of a local publicly
owned electric utility or electrical cooperative shall make this
determination within 180 days of the first request made by an
eligible customer-generator to aggregate their load. In making the
determination, the ratemaking authority shall determine if there are
any public purpose or other noncommodity charges that the eligible
customer-generator would pay pursuant to the net energy metering or
co-energy metering program of the utility as it exists prior to
aggregation, that the eligible customer-generator would not pay if
permitted to aggregate the electrical load of multiple meters
pursuant to this paragraph. If the ratemaking authority determines
that load aggregation will not cause an incremental rate impact on
the utility's customers that are not eligible customer-generators,
the local publicly owned electric utility or electrical cooperative
shall permit an eligible customer-generator to elect to aggregate the
electrical load of multiple meters pursuant to this paragraph. The
ratemaking authority may reconsider any determination made pursuant
to this subparagraph in a subsequent public proceeding.
(F) For purposes of this paragraph, parcels that are divided by a
street, highway, or public thoroughfare are considered contiguous,
provided they are otherwise contiguous and under the same ownership.
(G) An eligible customer-generator may only elect to aggregate the
electrical load of multiple meters if the renewable electrical
generation facility, or a combination of those facilities, has a
total generating capacity of not more than one megawatt.
(H) Notwithstanding subdivision (g), an eligible
customer-generator electing to aggregate the electrical load of
multiple meters pursuant to this subdivision shall remit service
charges for the cost of providing billing services to the electric
utility that provides service to the meters.
(5) (A) The ratemaking authority shall establish a net surplus
electricity compensation valuation to compensate the net surplus
customer-generator for the value of net surplus electricity generated
by the net surplus customer-generator. The commission shall
establish the valuation in a ratemaking proceeding. The ratemaking
authority for a local publicly owned electric utility shall establish
the valuation in a public proceeding. The net surplus electricity
compensation valuation shall be established so as to provide the net
surplus customer-generator just and reasonable compensation for the
value of net surplus electricity, while leaving other ratepayers
unaffected. The ratemaking authority shall determine whether the
compensation will include, where appropriate justification exists,
either or both of the following components:
(i) The value of the electricity itself.
(ii) The value of the renewable attributes of the electricity.
(B) In establishing the rate pursuant to subparagraph (A), the
ratemaking authority shall ensure that the rate does not result in a
shifting of costs between eligible customer-generators and other
bundled service customers.
(6) (A) Upon adoption of the net surplus electricity compensation
rate by the ratemaking authority, any renewable energy credit, as
defined in Section 399.12, for net surplus electricity purchased by
the electric utility shall belong to the electric utility. Any
renewable energy credit associated with electricity generated by the
eligible customer-generator that is utilized by the eligible
customer-generator shall remain the property of the eligible
customer-generator.
(B) Upon adoption of the net surplus electricity compensation rate
by the ratemaking authority, the net surplus electricity purchased
by the electric utility shall count toward the electric utility's
renewables portfolio standard annual procurement targets for the
purposes of paragraph (1) of subdivision (b) of Section 399.15, or
for a local publicly owned electric utility, the renewables portfolio
standard annual procurement targets established pursuant to Section
399.30.
(7) The electric utility shall provide every eligible residential
or small commercial customer-generator with net electricity
consumption and net surplus electricity generation information with
each regular bill. That information shall include the current
monetary balance owed the electric utility for net electricity
consumed, or the net surplus electricity generated, since the last
12-month period ended. Notwithstanding this subdivision, an electric
utility shall permit that customer to pay monthly for net energy
consumed.
(8) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric utility, the electric utility shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
(9) If an electric service provider or electric utility providing
net energy metering to a residential or small commercial
customer-generator ceases providing that electric service to that
customer during any 12-month period, and the customer-generator
enters into a new net energy metering contract or tariff with a new
electric service provider or electric utility, the 12-month period,
with respect to that new electric service provider or electric
utility, shall commence on the date on which the new electric service
provider or electric utility first supplies electric service to the
customer-generator.
(i) Notwithstanding any other provisions of this section,
paragraphs (1), (2), and (3) shall apply to an eligible
customer-generator with a capacity of more than 10 kilowatts, but not
exceeding one megawatt, that receives electric service from a local
publicly owned electric utility that has elected to utilize a
co-energy metering program unless the local publicly owned electric
utility chooses to provide service for eligible customer-generators
with a capacity of more than 10 kilowatts in accordance with
subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
time-of-use measurements of electricity flow, and the customer shall
take service on a time-of-use rate schedule. If the existing meter of
the eligible customer-generator is not a time-of-use meter or is not
capable of measuring total flow of electricity in both directions,
the eligible customer-generator shall be responsible for all expenses
involved in purchasing and installing a meter that is both
time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a governmental agency or an electric utility to reduce
its costs for purchasing and installing a time-of-use meter.
(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use a renewable electrical generation facility. The
generation of electricity provided to the local publicly owned
electric utility shall result in a credit to the eligible
customer-generator and shall be priced in accordance with the
generation component, established under the applicable structure to
which the customer would be assigned if the customer did not use a
renewable electrical generation facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a
kilowatthour credit consistent with the provisions of any applicable
contract or tariff, including any differences attributable to the
time of generation of the electricity. At the end of each 12-month
period, the local publicly owned electric utility may reduce any net
credit due to the eligible customer-generator to zero.
(j) A renewable electrical generation facility used by an eligible
customer-generator shall meet all applicable safety and performance
standards established by the National Electrical Code, the Institute
of Electrical and Electronics Engineers, and accredited testing
laboratories, including Underwriters Laboratories Incorporated and,
where applicable, rules of the commission regarding safety and
reliability. A customer-generator whose renewable electrical
generation facility meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electrical corporation that may not be recovered
from customer-generators acting pursuant to this section, those
obligations shall remain within the customer class from which any
shortfall occurred and shall not be shifted to any other customer
class. Net energy metering and co-energy metering customers shall not
be exempt from the public goods charges imposed pursuant to Article
7 (commencing with Section 381), Article 8 (commencing with Section
385), or Article 15 (commencing with Section 399) of Chapter 2.3 of
Part 1.
(l) A net energy metering, co-energy
metering, or wind energy co-metering customer shall reimburse the
Department of Water Resources for all charges that would otherwise be
imposed on the customer by the commission to recover bond-related
costs pursuant to an agreement between the commission and the
Department of Water Resources pursuant to Section 80110 of the Water
Code, as well as the costs of the department equal to the share of
the department's estimated net unavoidable power purchase contract
costs attributable to the customer. The commission shall incorporate
the determination into an existing proceeding before the commission,
and shall ensure that the charges are nonbypassable. Until the
commission has made a determination regarding the nonbypassable
charges, net energy metering, co-energy metering, and wind energy
co-metering shall continue under the same rules, procedures, terms,
and conditions as were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (
l ), an eligible customer-generator shall not be required
to replace its existing meter except as set forth in paragraph (1) of
subdivision (c), nor shall the electric utility require additional
measurement of usage beyond that which is necessary for customers in
the same rate class as the eligible customer-generator.
(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, including net surplus electricity
compensation, co-energy metering, and wind energy co-metering
projects undertaken pursuant to this section as sustainable building
methods or distributive energy technologies for purposes of
evaluating low-income housing projects.
SEC. 23. Section 2 of Chapter 657 of the Statutes of 2007 is
repealed.
SEC. 24. Section 1 of Chapter 415 of the Statutes of 2013 is
amended to read:
SECTION 1. (a) The sum of twenty million dollars ($20,000,000) is
hereby appropriated to the State Air Resources Board for the 2013-14
fiscal year from the Greenhouse Gas Reduction Fund, established
pursuant to Section 16428.8 of the Government Code, to be expended
only for the Clean Vehicle Rebate Project, established pursuant to
Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5 of
Division 26 of the Health and Safety Code. The unencumbered balance
of the appropriation made pursuant to this subdivision as it read on
January 1, 2014, is hereby reverted to the Vehicle Inspection and
Repair Fund. Notwithstanding Section 16304.1 of the Government Code,
the moneys appropriated pursuant to this subdivision shall be
available for encumbrance until June 30, 2015.
(b) The sum of ten million dollars ($10,000,000) is hereby
appropriated to the State Air Resources Board for the 2013-14 fiscal
year from the Greenhouse Gas Reduction Fund, established pursuant to
Section 16428.8 of the Government Code, to be expended only for the
Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project,
established pursuant to Article 3 (commencing with Section 44274) of
Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code.
The unencumbered balance of the appropriation made pursuant to this
subdivision as it read on January 1, 2014, is hereby reverted to the
Vehicle Inspection and Repair Fund. Notwithstanding Section 16304.1
of the Government Code, the moneys appropriated pursuant to this
subdivision shall be available for encumbrance until June 30, 2015.
(c) The sum of ten million dollars ($10,000,000) is hereby
appropriated to the State Air Resources Board from the moneys
transferred to the Air Pollution Control Fund pursuant to subdivision
(e) to be expended only for the Heavy-Duty Vehicle Air Quality Loan
Program, administered through the Capital Access Loan Program
established pursuant to Article 8 (commencing with Section 44559) of
Chapter 1 of Division 27 of the Health and Safety Code.
(d) The sum of ten million dollars ($10,000,000) shall be
transferred by the Controller as a loan from the Vehicle Inspection
and Repair Fund to the Air Pollution Control Fund. No later than June
30, 2021, the loan shall be repaid from the Air Pollution Control
Fund with interest at the rate earned by the Pooled Money Investment
Account at the time of the transfer.
SEC. 25. Pursuant to paragraph (1) of subdivision (b) of Section
44091.1 of the Health and Safety Code, the sum of fifteen million
dollars ($15,000,000) is hereby transferred to the Air Quality
Improvement Fund from the Vehicle Inspection and Repair Fund from
revenues generated from the smog abatement fee pursuant to paragraph
(1) of subdivision (d) of Section 44060 of the Health and Safety
Code.
SEC. 26. The provisions of this measure are severable. If any
provision of this measure or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
SEC. 27. 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. 28. 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.