BILL NUMBER: SB 874 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 12, 2014
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2014
An act relating to the Budget Act of 2014.
An act to amend Section 5956.10 of the Government Code,
to amend Section 50661 of the Health and Safety Code, to amend
Section 25416 of the Public Resources Code, to amend Section 379.6 of
the Public Utilities Code, and to amend Sections 62 and 193 of
Chapter 35 of the Statutes of 2014, relating to public resources, and
making an appropriation therefor, to take effect immediately, bill
related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 874, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2014. Public resources.
(1) Existing law authorizes a governmental agency to solicit
proposals and enter into agreements with private entities for the
design, construction, or reconstruction of, and to lease to private
entities, specified types of fee-producing infrastructure projects.
Existing law prohibits a state agency or specified governmental
agencies from using this authorization to design, construct, finance,
or operate a state project, as specified.
This bill would specify that a state project, for these purposes,
does not include a governmental agency project financed through the
State Water Pollution Control Revolving Fund or the Safe Drinking
Water State Revolving Fund.
(2) Existing law creates the Housing Rehabilitation Loan Fund and
continuously appropriates moneys in the fund for, among other
purposes, making specified deferred payment housing rehabilitation
loans. Prior to June 20, 2014, existing law authorized, to the extent
no other funding sources were available, $10,000,000 in the fund to
be used by the department for the purpose of providing housing
rental-related subsidies to persons rendered homeless, or at risk of
becoming homeless, due to unemployment, underemployment, or other
economic hardship resulting from the state of emergency proclaimed by
the Governor based on drought conditions.
This bill would, to the extent no other funding sources are
available, reauthorize that $10,000,000 in the fund to be used by the
department for the above-stated purposes.
(3) The Energy Conservation Assistance Act of 1979 establishes the
State Energy Conservation Assistance Account, a continuously
appropriated account, that is administered by the State Energy
Resources Conservation and Development Commission to provide grants
and loans to various public entities to maximize energy use savings
in existing and planned buildings and facilities. Existing law, the
Budget Act of 2014, transfers, upon order of the Director of Finance,
moneys from the Greenhouse Gas Reduction Fund to the account for
those purposes.
This bill would create a continuously appropriated subaccount
within the State Energy Conservation Assistance Count to track the
award and repayment of loans made with moneys transferred from the
Greenhouse Gas Reduction Fund, as specified. The bill would authorize
moneys in the subaccount to be used for loans only for projects in
buildings owned and operated by a state agency or entity, including,
without limitation, the University of California and California State
University.
(4) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the Public Utilities
Commission to require the administration, until January 1, 2021, of a
self-generation incentive program for distributed generation
resources. Existing law limits eligibility for incentives under the
self-generation incentive program to distributed energy resources
that the Public Utilities Commission, in consultation with the State
Air Resources Board, determines will achieve reductions in emissions
of greenhouse gases pursuant to the California Global Warming
Solutions Act of 2006.
This bill would modify the eligibility requirements for incentives
under the self-generation incentive program, as specified. The bill
also would modify the performance measures used in Public Utilities
Commission's evaluation of the overall success and impact of the
self-generation incentive program, as specified.
(5) Existing law, the Budget Act of 2014, appropriates the
unencumbered balance of specified moneys appropriated in the Budget
Act of 2003 for the State Department of Public Health to the State
Water Resources Control Board for encumbrance or expenditure until
June 30, 2016, for the purposes of providing grants of up to $500,000
per project for public water systems to address drought-related
drinking water emergencies or threatened emergencies.
This bill would make those moneys available for liquidation until
June 30, 2018.
This bill also would make conforming changes.
(6) The California Global Warming Solutions Act of 2006
establishes the State Air Resources Board as the state agency
responsible for monitoring and regulating sources emitting greenhouse
gases. The act requires the state board to adopt a statewide
greenhouse gas emissions limit, as defined, to be achieved by 2020,
equivalent to the statewide greenhouse gas emissions levels in 1990.
Existing law authorizes the state board to adopt a schedule of fees
to be paid by the sources of greenhouse gas emissions regulated
pursuant to the act and requires those fees to be deposited in the
Cost of Implementation Account. The act requires the state board to
prepare and approve a scoping plan for achieving the maximum
technologically feasible and cost-effective reductions in greenhouse
gas emissions. The act requires the scoping plan to be updated at
least once every 5 years.
This bill would appropriate $529,000 from the Cost of
Implementation Account to the Secretary of the Natural Resources
Agency for the purpose of implementing elements of the scoping plan
adopted by the State Air Resources Board.
(7) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5956.10 of the
Government Code is amended to read:
5956.10. (a) Notwithstanding any other
provision of this chapter, neither the state or any state
agency may shall directly or indirectly
use the authority in this chapter, chapter
nor may shall any governmental
agency agency, as defined in Section
5956.3, use the authority in this chapter,
chapter to design, construct, finance, or operate a state
project. For purposes of this section, a state project includes any
of the following:
(a)
(1) Toll roads on state highways.
(b)
(2) State water projects.
(c)
(3) State park and recreation projects.
(d)
(4) State financed projects.
(b) These limitations shall not prohibit the
state, any state agency, or any governmental agency
agency, as defined in Section 5956.3, from
utilizing authorizations contained in other provisions of law.
(c) For purposes of this section, a state project does not include
a governmental agency project financed through the State Water
Pollution Control Revolving Fund, established pursuant to Section
13477 of the Water Code, or the Safe Drinking Water State Revolving
Fund, established pursuant to Section 116760.30 of the Health and
Safety Code.
SEC. 2. Section 50661 of the Health and
Safety Code is amended to read:
50661. (a) There is hereby created in the State Treasury the
Housing Rehabilitation Loan Fund. All interest or other increments
resulting from the investment of moneys in the Housing Rehabilitation
Loan Fund shall be deposited in the fund, notwithstanding Section
16305.7 of the Government Code. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
to the department for the following purposes:
(1) For making deferred-payment rehabilitation loans for
financing all or a portion of the cost of rehabilitating existing
housing to meet rehabilitation standards as provided in this chapter.
(2) For making deferred payment loans as provided in Sections
50668.5, 50669, and 50670.
(3) For making deferred payment loans pursuant to Sections
50662.5 and 50671.
(4) Subject to the restrictions of Section 53131, if applicable,
for administrative expenses of the department made pursuant to this
chapter, Article 3 (commencing with Section 50693) of Chapter 7.5,
and Chapter 10 (commencing with Section 50775).
(5) For related administrative costs of nonprofit corporations
and local public entities contracting with the department pursuant to
Section 50663 in an amount, if any, as determined by the department,
to enable the entities and corporations to implement a program
pursuant to this chapter. The department shall ensure that not less
than 20 percent of the funds loaned pursuant to this chapter shall be
allocated to rural areas. For purposes of this chapter
chapter, "rural area" shall have the same
meaning as in Section 50199.21.
(6) To the extent no other funding sources are available, ten
million dollars ($10,000,000), as provided in Section 4 of Chapter 3
of the Statutes of 2014, may be used for the purposes of Section
34085.
(b) There shall be paid into the fund the following:
(1) Any moneys appropriated and made available by the Legislature
for purposes of the fund.
(2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest thereon.
(3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
(4) Moneys transferred or deposited to the fund pursuant to
Sections 50661.5 and 50778.
(c) Notwithstanding any other provision of
law, any interest or other increment earned by the investment or
deposit of moneys appropriated by subdivision (b) of Section 3 of
Chapter 2 of the Statutes of the 1987-88 First Extraordinary Session,
or Section 7 of Chapter 4 of the Statutes of the 1987-88 First
Extraordinary Session, shall be deposited in a special account in the
Housing Rehabilitation Loan Fund and shall be used exclusively for
purposes of Sections 50662.5 and 50671.
(d) Notwithstanding any other provision of
law, effective with the date of the act adding this subdivision,
appropriations authorized by the Budget Act of 1996 for support of
the Department of Housing and Community Development from the
California Disaster Housing Repair Fund and the California
Homeownership Assistance Fund shall instead be authorized for
expenditure from the Housing Rehabilitation Loan Fund.
(e) Effective July 1, 2014, the California Housing Trust Fund in
the State Treasury is abolished and any remaining balance, assets,
liabilities, and encumbrances shall be transferred to, and become
part of, the Housing Rehabilitation Loan Fund. Notwithstanding
Section 13340 of the Government Code, all transferred amounts are
continuously appropriated to the department for the purpose of
satisfying any liabilities and encumbrances and the purposes
specified in this section.
SEC. 3. Section 25416 of the Public
Resources Code is amended to read:
25416. (a) The State Energy Conservation Assistance Account is
hereby created in the General Fund. Notwithstanding Section 13340 of
the Government Code, the account is continuously appropriated to the
commission without regard to fiscal year.
(b) The money in the account shall consist of all money
moneys authorized or required to be deposited in
the account by the Legislature and all money
moneys received by the commission pursuant to Sections 25414
and 25415.
(c) The money moneys in the account
shall be disbursed by the Controller for the purposes of this chapter
as authorized by the commission.
(d) The commission may contract and provide grants for services to
be performed for eligible institutions. Services may include, but
are not limited to, feasibility analysis, project design, field
assistance, and operation and training. The amount expended for those
services may shall not exceed 10
percent of the unencumbered balance of the account as determined by
the commission on July 1 of each year.
(e) The commission may make grants to eligible institutions for
innovative projects and programs. Except as provided in subdivision
(d), the amount expended for grants may shall
not exceed 5 percent of the annual unencumbered balance in the
account as determined by the commission on July 1 of each fiscal
year.
(f) The commission may charge a fee for the services provided
under subdivision (d).
(g) Notwithstanding any other provision of law,
the Controller may use the State Energy Conservation Assistance
Account for loans to the General Fund as provided in Sections 16310
and 16381 of the Government Code.
(h) (1) A subaccount is hereby created within the State Energy
Conservation Assistance Account to track the award and repayment of
loans, including principal, interest, and interest earnings on or
accruing to the subaccount, made with moneys transferred to the
account from the Greenhouse Gas Reduction Fund, created pursuant to
Section 16428.8 of the Government Code. Notwithstanding Section 13340
of the Government Code, the subaccount is hereby continuously
appropriated to the commission without regard to fiscal year.
(2) Moneys deposited in the subaccount may be used for loans only
for projects in buildings owned and operated by a state agency or
entity, including, without limitation, the University of California
and California State University.
(3) Notwithstanding Section 39718 of the Health and Safety Code, a
repayment of a loan made pursuant to this chapter with moneys
transferred from the Greenhouse Gas Reduction Fund shall be deposited
in the subaccount and shall be available for a loan made to an
entity eligible for these moneys pursuant to this subdivision.
SEC. 4. Section 379.6 of the Public
Utilities Code is amended to read:
379.6. (a) (1) It is the intent of the Legislature that the
self-generation incentive program increase deployment of distributed
generation and energy storage systems to facilitate the integration
of those resources into the electrical grid, improve efficiency and
reliability of the distribution and transmission system, and reduce
emissions of greenhouse gases, peak demand, and ratepayer costs. It
is the further intent of the Legislature that the commission, in
future proceedings, provide for an equitable distribution of the
costs and benefits of the program.
(2) The commission, in consultation with the Energy Commission,
may authorize the annual collection of not more than the amount
authorized for the self-generation incentive program in the 2008
calendar year, through December 31, 2019. The commission shall
require the administration of the program for distributed energy
resources originally established pursuant to Chapter 329 of the
Statutes of 2000 until January 1, 2021. On January 1, 2021, the
commission shall provide repayment of all unallocated funds collected
pursuant to this section to reduce ratepayer costs.
(3) The commission shall administer solar technologies separately,
pursuant to the California Solar Initiative adopted by the
commission in Decisions 05-12-044 and 06-01-024, as modified by
Article 1 (commencing with Section 2851) of Chapter 9 of Part 2 of
Division 1 of this code and Chapter 8.8 (commencing with Section
25780) of Division 15 of the Public Resources Code.
(b) (1) Eligibility for incentives under the self-generation
incentive program shall be limited to distributed energy resources
that the commission, in consultation with the State Air Resources
Board, determines will achieve reductions in emissions of greenhouse
gases pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code).
(2) On or before July 1, 2015, the commission shall update the
factor for avoided greenhouse gas emissions based on the most recent
data available to the State Air Resources Board for greenhouse gas
emissions from electricity sales in the self-generation incentive
program administrators' service areas as well as current estimates of
greenhouse gas emissions over the useful life of the distributed
energy resource, including consideration of the effects of the
California Renewables Portfolio Standard.
(c) Eligibility for the funding of any combustion-operated
distributed generation projects using fossil fuel is subject to all
of the following conditions:
(1) An oxides of nitrogen (NOx) emissions rate standard of 0.07
pounds per megawatthour and a minimum efficiency of 60 percent, or
any other NOx emissions rate and minimum efficiency standard adopted
by the State Air Resources Board. A minimum efficiency of 60 percent
shall be measured as useful energy output divided by fuel input. The
efficiency determination shall be based on 100 percent load.
(2) Combined heat and power units that meet the 60-percent
efficiency standard may take a credit to meet the applicable NOx
emissions standard of 0.07 pounds per megawatthour. Credit shall be
at the rate of one megawatthour for each 3,400,000 British thermal
units (Btus) of heat recovered.
(3) The customer receiving incentives shall adequately maintain
and service the combined heat and power units so that during
operation the system continues to meet or exceed the efficiency and
emissions standards established pursuant to paragraphs (1) and (2).
(4) Notwithstanding paragraph (1), a project that does not meet
the applicable NOx emissions standard is eligible if it meets both of
the following requirements:
(A) The project operates solely on waste gas. The commission shall
require a customer that applies for an incentive pursuant to this
paragraph to provide an affidavit or other form of proof that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
"waste gas" means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery to
the utility pipeline system.
(B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit, benefit compared to permitted
onsite emissions if the project does not operate. The commission
shall require the customer to secure the permit prior to receiving
incentives.
(d) In determining the eligibility for the self-generation
incentive program, minimum system efficiency shall be determined
either by calculating electrical and process heat efficiency as set
forth in Section 216.6, or by calculating overall electrical
efficiency.
(e) Eligibility for incentives under the program shall be limited
to distributed energy resource technologies that the commission
determines meet all of the following requirements:
(1) The distributed energy resource technology is capable of
reducing demand from the grid by offsetting or shifting
some or all of the customer's onsite energy load, including,
but not limited to, peak electric demand. load.
(2) The distributed energy resource technology is commercially
available.
(3) The distributed energy resource technology safely utilizes the
existing transmission and distribution system.
(4) The distributed energy resource technology improves air
quality by reducing criteria air pollutants.
(f) Recipients of the self-generation incentive program funds
shall provide relevant data to the commission and the State Air
Resources Board, upon request, and shall be subject to onsite
inspection to verify equipment operation and performance, including
capacity, thermal output, and usage to verify criteria air pollutant
and greenhouse gas emissions performance.
(g) In administering the self-generation incentive program, the
commission shall determine a capacity factor for each distributed
generation system energy resource technology in the program.
(h) (1) In administering the self-generation incentive program,
the commission may adjust the amount of rebates and evaluate other
public policy interests, including, but not limited to, ratepayers,
energy efficiency, peak load reduction, load management, and
environmental interests.
(2) The commission shall consider the relative amount and the cost
of greenhouse gas emission emissions
reductions, peak demand reductions, system reliability benefits, and
other measurable factors when allocating program funds between
eligible technologies.
(i) The commission shall ensure that distributed generation
resources are made available in the program for all ratepayers.
(j) In administering the self-generation incentive program, the
commission shall provide an additional incentive of 20 percent from
existing program funds for the installation of eligible distributed
generation resources manufactured in California.
(k) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy (CARE) program.
( l ) The commission shall evaluate the overall success
and impact of the self-generation incentive program based on the
following performance measures:
(1) The amount of reductions of emissions of greenhouse gases.
(2) The amount of reductions of emissions of criteria air
pollutants measured in terms of avoided emissions and reductions of
criteria air pollutants represented by emissions credits secured for
project approval.
(3) The amount of energy reductions measured in energy value.
(4) The amount of reductions of aggregate noncoincident
customer peak demand.
(5) The ratio of the electricity generated by distributed energy
resource gener ation projects receiving
incentives from the program to the electricity capable of being
produced by those distributed energy resource projects, commonly
known as a capacity factor.
(6) The value to the electrical transmission and distribution
system measured in avoided costs of transmission and distribution
upgrades and replacement.
(7) The ability to improve onsite electricity reliability as
compared to onsite electricity reliability before the self-generation
incentive program technology was placed in service.
SEC. 5. Section 62 of Chapter 35 of the Statutes
of 2014 is amended to read:
Sec. 62. It is the intent of the Legislature that the
reorganization and transfer made by Sections 63 to 127, inclusive,
Section 181, and Section 182, Sections
187 to 190 191 , inclusive, and
Section 193 of this act be carried out in a manner to preserve
state primacy under the federal Safe Drinking Water Act and that the
terms of this act shall be liberally construed to achieve this
purpose.
SEC. 6. Section 193 of Chapter 35 of the Statutes
of 2014 is amended to read:
Sec. 193. Notwithstanding any other law, the unencumbered
balance of the appropriation provided for in Item
4265-111-0001 of Chapter 2 of the Statutes of 2014, for the purposes
specified in Provision 3 of that item, is hereby appropriated to the
State Water Resources Control Board, as of June 30, 2014.
This fund These funds shall be available for
encumbrance or expenditure until June 30, 2016, and available
for liquidation until June 30, 2018, for purposes consistent
with subdivisions (a) and (c) of Section 75021 of the Public
Resources Code for grants pursuant to the Public Water System Drought
Emergency Funding Guidelines adopted by the State Department of
Public Health on March 28, 2014, for public water systems to address
drought-related drinking water emergencies. The State Water Resources
Control Board shall make every effort to use other funds available
to address drinking water emergencies, including federal funds made
available for the drought drought,
prior to using the funds specified in this section.
SEC. 7. The sum of five hundred twenty-nine
thousand dollars ($529,000) is hereby appropriated from the Cost of
Implementation Account, established pursuant to Section 16428.95 of
the Government Code, to the Secretary of the Natural Resources Agency
for the purpose of implementing elements of the scoping plan adopted
by the State Air Resources Board pursuant to Section 38561 of the
Health and Safety Code.
SEC. 8. 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.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.