Amended in Senate June 14, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1612

Introduced by begin delete Committee on Budget (Assembly Members Ting (Chair), Travis Allen, Bigelow, Bloom, Bonta, Campos, Chávez, Chiu, Cooper, Gordon, Grove, Harper, Holden, Irwin, Kim, Lackey, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Rodriguez, Thurmond, Wilk, and Williams) end delete begin insert Committee on Budget (Assembly Members Ting (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Holden, Irwin, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, and Williams) end insert

January 7, 2016

begin delete An act relating to the Budget Act of 2016. end delete begin insert An act to amend Section 51013.1 of, and to add Section 51015.6 to, the Government Code, to amend Section 44273 of the Health and Safety Code, to amend Section 1546.1 of the Penal Code, to amend Sections 3401 and 25751 of the Public Resources Code, and to add Section end insert begin insert 784.1 to, and to repeal Section 2834 of, the Public Utilities Code, relating to energy, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1612, as amended, Committee on Budget. begin delete Budget Act of 2016. end delete begin insert Public resources: energy. end insert

begin insert

(1) Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities. Existing law authorizes the PUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law authorizes certain public utilities, including gas corporations, to propose research and development programs and authorizes the PUC to allow inclusion of expenses for research and development in the public utility’s rates. Existing law requires the PUC to consider specified guidelines in evaluating the research, development, and demonstration programs proposed by gas corporations.

end insert begin insert

The California Renewables Portfolio Standard Program requires the PUC to adopt policies and programs that promote the in-state production and distribution of biomethane. Existing law requires the PUC to adopt, by rule or order, standards for biomethane that specify the concentrations of constituents of concern that are reasonably necessary to protect public health and ensure pipeline integrity and safety, as specified, and requirements for monitoring, testing, reporting, and recordkeeping, as specified. Existing law requires a gas corporation to comply with those standards and requirements and requires that gas corporation tariffs condition access to common carrier pipelines on the applicable customer meeting those standards and requirements. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

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This bill would request the California Council on Science and Technology to undertake and complete a study analyzing the regional and gas corporation specific issues relating to minimum heating value and maximum siloxane specifications adopted by the PUC for biomethane before it can be injected into common carrier gas pipelines. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require each gas corporation operating common carrier pipelines in California to proportionately contribute to the expenses to undertake the study with the cost recoverable in rates. The bill would authorize the PUC to modify certain available monetary incentives to allocate some of the incentive moneys to pay for the costs of the study so as to not further burden ratepayers with additional expense. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require the PUC, within 6 months of its completion, to reevaluate requirements and standards adopted for injection of biomethane into common carrier pipelines and, if appropriate, change those requirements and standards or adopt new requirements and standards, giving due deference to the conclusions and recommendations made in the study. Because certain provisions of the bill would be a part of the act and a violation of an order or decision of the PUC implementing its requirements would be a crime, this bill would impose a state-mandated local program by creating a new crime.

end insert begin insert

The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the PUC an application requesting approval of a tariff to implement a program enabling ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the PUC, by July 1, 2014, to issue a decision concerning the participating utility’s application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the PUC, after notice and opportunity for public comment, to approve the application if the PUC determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the PUC to require that a participating utility’s Green Tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.

end insert begin insert

This bill would extend the operation of the program indefinitely. By extending the requirements of the Green Tariff Shared Renewables Program the bill would impose a state-mandated local program by extending the application of a crime.

end insert begin insert

Decisions of the PUC adopted the California Solar Initiative administered by electrical corporations and subject to the PUC’s supervision. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake certain steps in implementing the California Solar Initiative and requires the PUC to ensure that the total cost over the duration of the program does not exceed $3,550,800,000. Existing law specifies that the financial components of the California Solar Initiative include the New Solar Homes Partnership Program, which is administered by the Energy Commission. Existing law requires the program to be funded by charges in the amount of $400,000,000 collected from customers of the state’s 3 largest electrical corporations. If moneys from the Renewable Resource Trust Fund for the program are exhausted, existing law authorizes the PUC, upon notification by the Energy Commission, to require those electrical corporations to continue the administration of the program pursuant to the guidelines established by the Energy Commission for the program until the $400,000,000 monetary limit is reached. Existing law authorizes the PUC to determine whether a 3rd party, including the Energy Commission, should administer the electrical corporation’s continuation of the program. Existing law establishes the Renewable Resource Trust Fund as a fund that is continuously appropriated, with certain exceptions for administrative expenses, in the State Treasury.

end insert begin insert

This bill would require, if the PUC orders a continuation of the New Solar Homes Partnership Program and determines that the Energy Commission should be the 3rd party administrator for the program, that any funding made available for the program be deposited into the Emerging Renewable Resources Account of the Renewable Resource Trust Fund and used for the program.

end insert begin insert

(2) The Public Utilities Act requires the PUC to submit various reports to the Legislature relative to the actions of the PUC.

end insert begin insert

This bill would require the PUC to submit 2 reports to the relevant policy and fiscal committees of the Legislature by March 1, 2017. The first report would pertain to the PUC’s business process inventory efforts. The 2nd report would concern options to locate operations and staff outside of the PUC’s San Francisco headquarters and would explore options to allow the PUC to collaborate with other state entities and provide staff more opportunities for training, career development, and exchange placements with other state entities.

end insert begin insert

Existing law, with exceptions, prohibits a government entity from compelling the production of or access to electronic communication information or electronic device information without a search warrant, wiretap order, order for electronic reader records, or subpoena.

end insert begin insert

This bill would provide that the above provisions do not limit the authority of the PUC or the Energy Commission to obtain energy or water supply and consumption information pursuant to the powers granted to them under the Public Utilities Code or the Public Resources Code and other applicable state laws.

end insert begin insert

(3) The Elder California Pipeline Safety Act of 1981, among other things, by January 1, 2018, requires any new or replacement pipeline that is near environmentally or ecological by sensitive areas to use the best technology available to reduce the amount of oil released in a spill, as specified. Existing law requires operators of existing pipelines near these areas to submit a plans by January 1, 2018, to retrofit those pipelines for these purposes using the best available technology by January 1, 2020. A violation of these provisions is a crime.

end insert begin insert

This bill would define “oil” for these provisions of the act concerning pipeline safety, by reference to a specified federal regulation, to mean petroleum, petroleum products, anhydrous ammonia, and ethanol. By expanding the scope of a crime, the bill would impose a state-mandated local program.

end insert begin insert

Under the Elder California Pipeline Safety Act of 1981, the State Fire Marshal administers provisions regulating the inspection of intrastate pipelines that transport hazardous liquids.

end insert begin insert

This bill would require the State Fire Marshal, on or before January 31, 2017, and on or before January 31 annually thereafter until January 31, 2021, to submit a report to the Legislature containing specified information regarding the inspection of those pipelines, shutoff systems in those pipelines, and the status of 2 specified pipelines.

end insert begin insert

(4) Existing law imposes, among other things, an annual charge upon each person operating or owning an interest in an oil or gas well, with respect to the production of the well, which charge is payable to the Treasurer for deposit into the Oil, Gas, and Geothermal Administrative Fund. Existing law requires that moneys from charges levied, assessed, and collected upon the properties of every person operating or owning an interest in the production of a well be used exclusively, upon appropriation, for the support and maintenance of the Department of Conservation, which is charged with the supervision of oil and gas operations, and for the support of the State Water Resources Control Board and the regional water quality control boards for their activities related to oil and gas operations that may affect water resources.

end insert begin insert

This bill would additionally authorize the use of those moneys for the support of the State Air Resources Board and the Office of Environmental Health Hazard Assessment for their activities related to oil and gas operations that may affect air quality, public health, or public safety.

end insert begin insert

(5) Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the Energy Commission, to provide to specified entities, upon appropriation by the Legislature, grants, loans, loan guarantees, revolving loans, or other appropriate measures for the development and deployment of innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change goals. Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Fund, moneys in which are to be expended by the Energy Commission, upon appropriation, to implement the program. Existing law creates the Public Interest Research, Development, and Demonstration Fund in the State Treasury and required that specified moneys collected by the state’s 3 largest electrical corporations, until January 1, 2012, be paid into the Public Interest Research, Development, and Demonstration Fund. Existing law requires $10,000,000 to be transferred annually from the Public Interest Research, Development, and Demonstration Fund to the Alternative and Renewable Fuel and Vehicle Technology Fund.

end insert begin insert

This bill would repeal the requirement that $10,000,000 be transferred annually from the Public Interest Research, Development, and Demonstration Fund to the Alternative and Renewable Fuel and Vehicle Technology Fund.

end insert begin insert

(6) Existing law vests with the Energy Commission jurisdiction over specified matters related to energy. Existing law requires the Attorney General, upon the request of the Energy Commission, to petition a court of competent jurisdiction to enjoin violations of law that are within the subject matter of the Energy Commission. Existing law requires the Energy Commission to prescribe, by regulation, building design and construction standards, energy and water efficiency design standards for new residential and nonresidential buildings, and appliance efficiency standards. Existing law authorizes the Energy Commission to establish an administrative enforcement process to enforce the appliance efficiency standards. Existing law establishes the Appliance Efficiency Enforcement Subaccount in the Energy Resources Program Account for the deposition of the penalties collected. Existing law authorizes the moneys subaccount to be expended by the Energy Commission, upon appropriation by the Legislature, for the education of the public regarding appliance energy efficiency and for the enforcement of specified regulations.

end insert begin insert

This bill would appropriate $275,000 from the Appliance Efficiency Enforcement Subaccount in the Energy Resources Programs Account to the Energy Commission to support the Title 20 Appliance Efficiency Standards Compliance Assistance and Enforcement Program.

end insert begin insert

(7) 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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin insert

(8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

end delete

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

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 51013.1 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

51013.1.  

(a) By January 1, 2018, any new or replacement
pipeline near environmentally and ecologically sensitive areas in
the coastal zone shall use best available technology, including, but
not limited to, the installation of leak detection technology,
automatic shutoff systems, or remote controlled sectionalized block
valves, or any combination of these technologies, based on a risk
analysis conducted by the operator, to reduce the amount of oil
released in an oil spill to protect state waters and wildlife.

(b) (1) By July 1, 2018, an operator of an existing pipeline near
environmentally and ecologically sensitive areas in the coastal
zone shall submit a plan to retrofit, by January 1, 2020, existing
pipelines near environmentally and ecologically sensitive areas in
the coastal zone with the best available technology, including, but
not limited to, installation of leak detection technologies, automatic
shutoff systems, or remote controlled sectionalized block valves,
or any combination of these technologies, based on a risk analysis
conducted by the operator to reduce the amount of oil released in
an oil spill to protect state waters and wildlife.

(2) An operator may request confidential treatment of
information submitted in the plan required by paragraph (1) or
contained in any documents associated with the risk analysis
described in this section, including, but not limited to, information
regarding the proposed location of automatic shutoff valves or
remote controlled sectionalized block valves.

(c) The State Fire Marshal shall adopt regulations pursuant to
this section by July 1, 2017. The regulations shall include, but not
be limited to, all of the following:

(1) A definition of automatic shutoff systems.

(2) A process to assess the adequacy of the operator’s risk
analysis.

(3) A process by which an operator may request confidential
treatment of information submitted in the plan required by
paragraph (1) of subdivision (b) or contained in any documents
associated with the risk analysis described in this section.

(4) A determination of how near to an environmentally and
ecologically sensitive area a pipeline must be to be subject to the
requirements of this section based on the likelihood of the pipeline
impacting those areas.

(d) An operator of a pipeline near environmentally and
ecologically sensitive areas in the coastal zone shall notify the
Office of the State Fire Marshal of any new construction or retrofit
of pipeline in these waters.

(e) For purposes of implementing this section, the State Fire
Marshal shall consult with the Office of Spill Prevention and
Response about the potential impacts to state water and wildlife.

(f) For purposes of this section, “environmentally and
ecologically sensitive areas” is the same term as described in
subdivision (d) of Section 8574.7.

(g) (1) For purposes of this section, “best available technology”
means technology that provides the greatest degree of protection
by limiting the quantity of release in the event of a spill, taking
into consideration whether the processes are currently in use and
could be purchased anywhere in the world.

(2) The State Fire Marshal shall determine what is the best
available technology and shall consider the effectiveness and
engineering feasibility of the technology when making this
determination.

begin insert

(h) For the purposes of this section, “oil” means hazardous
liquid as defined in Section 195.2 of Title 49 of the Code of the
Federal Regulations.

end insert

begin insert

begin insert SEC. 2. end insert   

Section 51015.6 is added to the Government Code, to
read:

begin insert 51015.6. end insert   

(a) On or before January 31, 2017, and on or before
January 31 annually thereafter, the State Fire Marshal shall submit
a report to the Legislature containing information, including, but
not limited to, all of the following:

(1) The number of annual inspections conducted pursuant to
Section 51015.1.

(2) The status of the installation of automatic shutoff systems
pursuant to Section 51013.1, including a summary of the types of
shutoff systems installed, and the number of miles of pipeline
covered by an automatic shutoff system.

(3) The status of Line 901 and Line 903 in the County of Santa
Barbara.

(b) (1) A report required to be submitted pursuant to subdivision
(a) shall be submitted in compliance with Section 9795.

(2) Pursuant to Section 10231.5, this section is inoperative on
January 31, 2021.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 44273 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

44273.  

(a) The Alternative and Renewable Fuel and Vehicle
Technology Fund is hereby created in the State Treasury, to be
administered by the commission. The moneys in the fund, upon
appropriation by the Legislature, shall be expended by the
commission to implement the Alternative and Renewable Fuel and
Vehicle Technology Program in accordance with this chapter.

begin delete

(b) Notwithstanding any other provision of law, the sum of ten
million dollars ($10,000,000) shall be transferred annually from
the Public Interest Research, Development, and Demonstration
Fund created by Section 384 of the Public Utilities Code to the
Alternative and Renewable Fuel and Vehicle Technology Fund.
Prior to the award of any funds from this source, the commission
shall make a determination that the proposed project will provide
benefits to electric or natural gas ratepayers based upon the
commission’s adopted criteria.

(c)

end delete

begin insert (b) end insert  Beginning with the integrated energy policy report adopted
in 2011, and in the subsequent reports adopted thereafter, pursuant
to Section 25302 of the Public Resources Code, the commission
shall include an evaluation of research, development, and
deployment efforts funded by this chapter. The evaluation shall
include all of the following:

(1) A list of projects funded by the Alternative and Renewable
Fuel and Vehicle Technology Fund.

(2) The expected benefits of the projects in terms of air quality,
petroleum use reduction, greenhouse gas emissions reduction,
technology advancement, benefit-cost assessment, and progress
towards achieving these benefits.

(3) The overall contribution of the funded projects toward
promoting a transition to a diverse portfolio of clean, alternative
transportation fuels and reduced petroleum dependency in
California.

(4) Key obstacles and challenges to meeting these goals
identified through funded projects.

(5) Recommendations for future actions.

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begin insert SEC. 4. end insert   

end insert

begin insert Section 1546.1 of the end insert begin insert Penal Code end insert begin insert is amended to read: end insert

1546.1.  

(a) Except as provided in this section, a government
entity shall not do any of the following:

(1) Compel the production of or access to electronic
communication information from a service provider.

(2) Compel the production of or access to electronic device
information from any person or entity other than the authorized
possessor of the device.

(3) Access electronic device information by means of physical
interaction or electronic communication with the electronic device.
This section does not prohibit the intended recipient of an electronic
communication from voluntarily disclosing electronic
communication information concerning that communication to a
government entity.

(b) A government entity may compel the production of or access
to electronic communication information from a service provider,
or compel the production of or access to electronic device
information from any person or entity other than the authorized
possessor of the device only under the following circumstances:

(1) Pursuant to a warrant issued pursuant to Chapter 3
(commencing with Section 1523) and subject to subdivision (d).

(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
(commencing with Section 629.50) of Title 15 of Part 1.

(3) Pursuant to an order for electronic reader records issued
pursuant to Section 1798.90 of the Civil Code.

(4) Pursuant to a subpoena issued pursuant to existing state law,
provided that the information is not sought for the purpose of
investigating or prosecuting a criminal offense, and compelling
the production of or access to the information via the subpoena is
not otherwise prohibited by state or federal law. Nothing in this
paragraph shall be construed to expand any authority under state
law to compel the production of or access to electronic information.

(c) A government entity may access electronic device
information by means of physical interaction or electronic
communication with the device only as follows:

(1) Pursuant to a warrant issued pursuant to Chapter 3
(commencing with Section 1523) and subject to subdivision (d).

(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
(commencing with Section 629.50) of Title 15 of Part 1.

(3) With the specific consent of the authorized possessor of the
device.

(4) With the specific consent of the owner of the device, only
when the device has been reported as lost or stolen.

(5) If the government entity, in good faith, believes that an
emergency involving danger of death or serious physical injury to
any person requires access to the electronic device information.

(6) If the government entity, in good faith, believes the device
to be lost, stolen, or abandoned, provided that the entity shall only
access electronic device information in order to attempt to identify,
verify, or contact the owner or authorized possessor of the device.

(7) Except where prohibited by state or federal law, if the device
is seized from an inmate’s possession or found in an area of a
correctional facility under the jurisdiction of the Department of
Corrections and Rehabilitation where inmates have access and the
device is not in the possession of an individual and the device is
not known or believed to be the possession of an authorized visitor.
Nothing in this paragraph shall be construed to supersede or
override Section 4576.

(d) Any warrant for electronic information shall comply with
the following:

(1) The warrant shall describe with particularity the information
to be seized by specifying the time periods covered and, as
appropriate and reasonable, the target individuals or accounts, the
applications or services covered, and the types of information
sought.

(2) The warrant shall require that any information obtained
through the execution of the warrant that is unrelated to the
objective of the warrant shall be sealed and not subject to further
review, use, or disclosure without a court order. A court shall issue
such an order upon a finding that there is probable cause to believe
that the information is relevant to an active investigation, or review,
use, or disclosure is required by state or federal law.

(3) The warrant shall comply with all other provisions of
California and federal law, including any provisions prohibiting,
limiting, or imposing additional requirements on the use of search
warrants. If directed to a service provider, the warrant shall be
accompanied by an order requiring the service provider to verify
the authenticity of electronic information that it produces by
providing an affidavit that complies with the requirements set forth
in Section 1561 of the Evidence Code. Admission of that
information into evidence shall be subject to Section 1562 of the
Evidence Code.

(e) When issuing any warrant or order for electronic information,
or upon the petition from the target or recipient of the warrant or
order, a court may, at its discretion, do any or all of the following:

(1) Appoint a special master, as described in subdivision (d) of
Section 1524, charged with ensuring that only information
necessary to achieve the objective of the warrant or order is
produced or accessed.

(2) Require that any information obtained through the execution
of the warrant or order that is unrelated to the objective of the
warrant be destroyed as soon as feasible after the termination of
the current investigation and any related investigations or
proceedings.

(f) A service provider may voluntarily disclose electronic
communication information or subscriber information when that
disclosure is not otherwise prohibited by state or federal law.

(g) If a government entity receives electronic communication
information voluntarily provided pursuant to subdivision (f), it
shall destroy that information within 90 days unless one or more
of the following circumstances apply:

(1) The entity has or obtains the specific consent of the sender
or recipient of the electronic communications about which
information was disclosed.

(2) The entity obtains a court order authorizing the retention of
the information. A court shall issue a retention order upon a finding
that the conditions justifying the initial voluntary disclosure persist,
in which case the court shall authorize the retention of the
information only for so long as those conditions persist, or there
is probable cause to believe that the information constitutes
evidence that a crime has been committed.

(3) The entity reasonably believes that the information relates
to child pornography and the information is retained as part of a
multiagency database used in the investigation of child
pornography and related crimes.

(h) If a government entity obtains electronic information
pursuant to an emergency involving danger of death or serious
physical injury to a person, that requires access to the electronic
information without delay, the entity shall, within three days after
obtaining the electronic information, file with the appropriate court
an application for a warrant or order authorizing obtaining the
electronic information or a motion seeking approval of the
emergency disclosures that shall set forth the facts giving rise to
the emergency, and if applicable, a request supported by a sworn
affidavit for an order delaying notification under paragraph (1) of
subdivision (b) of Section 1546.2. The court shall promptly rule
on the application or motion and shall order the immediate
destruction of all information obtained, and immediate notification
pursuant to subdivision (a) of Section 1546.2 if such notice has
not already been given, upon a finding that the facts did not give
rise to an emergency or upon rejecting the warrant or order
application on any other ground.

(i) This section does not limit the authority of a government
entity to use an administrative, grand jury, trial, or civil discovery
subpoena to do any of the following:

(1) Require an originator, addressee, or intended recipient of
an electronic communication to disclose any electronic
communication information associated with that communication.

(2) Require an entity that provides electronic communications
services to its officers, directors, employees, or agents for the
purpose of carrying out their duties, to disclose electronic
communication information associated with an electronic
communication to or from an officer, director, employee, or agent
of the entity.

(3) Require a service provider to provide subscriber information.

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(j) This section does not limit the authority of the Public Utilities
Commission or the Energy Commission to obtain energy or water
supply and consumption information pursuant to the powers
granted to them under the Public Utilities Code or the Public
Resources Code and other applicable state laws.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 3401 of the end insert begin insert Public Resources Code end insert begin insert is amended
to read: end insert

3401.  

(a) The proceeds of charges levied, assessed, and
collected pursuant to this article upon the properties of every person
operating or owning an interest in the production of a well shall
be used exclusively for the support and maintenance of the
department charged with the supervision of oil and gas begin delete operations
and end delete begin insert operations, end insert for the State Water Resources Control Board and
the regional water quality control boards for their activities related
to oil and gas operations that may affect water begin delete resources. end delete begin insert resources,
and for the support of the State Air Resources Board and the Office
of Environmental Health Hazard Assessment for their activities
related to oil and gas operations that may affect air quality, public
health, or public safety. end insert

(b) Notwithstanding subdivision (a), the proceeds of charges
levied, assessed, and collected pursuant to this article upon the
properties of every person operating or owning an interest in the
production of a well undergoing a well stimulation treatment, may
be used by public entities, subject to appropriation by the
Legislature, for all costs associated with both of the following:

(1) Well stimulation treatments, including rulemaking and
scientific studies required to evaluate the treatment, inspections,
any air and water quality sampling, monitoring, and testing
performed by public entities.

(2) The costs of the State Water Resources Control Board and
the regional water quality control boards in carrying out their
responsibilities pursuant to Section 3160 and Section 10783 of the
Water Code.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 25751 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25751.  

(a) The Renewable Resource Trust Fund is hereby
created in the State Treasury.

(b) The Emerging Renewable Resources Account is hereby
established within the Renewable Resources Trust Fund.
Notwithstanding Section 13340 of the Government Code, the
moneys in the account are hereby continuously appropriated to
the commission without regard to fiscal years for the following
purposes:

(1) To close out the award of incentives for emerging
technologies in accordance with former Section 25744, as this law
existed prior to the enactment of the Budget Act of 2012, for which
applications had been approved before the enactment of the Budget
Act of 2012.

(2) To close out consumer education activities in accordance
with former Section 25746, as this law existed prior to the
enactment of the Budget Act of 2012.

(3) To provide funding for the New Solar Homes Partnership
pursuant to paragraph (3) of subdivision (e) of Section 2851 of the
Public Utilities Code.

(c) The Controller shall provide to the commission funds
pursuant to the continuous appropriation in, and for purposes
specified in, subdivision (b).

(d) The Controller shall provide to the commission moneys
from the fund sufficient to satisfy all contract and grant awards
that were made by the commission pursuant to former Sections
25744 and 25746, and Chapter 8.8 (commencing with Section
25780), as these laws existed prior to the enactment of the Budget
Act of 2012.

begin insert

(e) If the Public Utilities Commission determines that the
commission should be the third-party administrator for the New
Solar Homes Partnership Program pursuant to subparagraph (A)
of paragraph (3) of subdivision (e) of Section 2851 of the Public
Utilities Code, any moneys made available to fund the New Solar
Homes Partnership Program shall be deposited into the Emerging
Renewable Resources Account of the Renewable Resource Trust
Fund and used for this purpose.

end insert

begin insert

begin insert SEC. 7. end insert   

The Legislature finds and declares all of the following:

(a) California imports 91 percent of its natural gas, which is
responsible for 25 percent of the state’s emissions of greenhouse
gases.

(b) California made a commitment to address climate change
with the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code) and the adoption of a comprehensive strategy
to reduce emissions of short-lived climate pollutants (Chapter 4.2
(commencing with Section 39730) of Part 2 of Division 26 of the
Health and Safety Code). For California to meet its goals for
reducing emissions of greenhouse gases and short-lived climate
pollutants, the state must reduce emissions from the natural gas
sector and increase the production and distribution of renewable
and low-carbon gas supplies.

(c) Biomethane is gas generated from organic waste through
anaerobic digestion, gasification, pyrolysis, or other conversion
technology that converts organic matter to gas. Biomethane may
be produced from multiple sources, including agricultural waste,
forest waste, landfill gas, wastewater treatment byproducts, and
diverted organic waste.

(d) Biomethane provides a sustainable and clean alternative to
natural gas. If 10 percent of California’s natural gas use were to
be replaced with biomethane use, emissions of greenhouse gases
would be reduced by tens of millions of metric tons of carbon
dioxide equivalent every year.

(e) Investing in biomethane would create cobenefits, including
flexible generation of electricity from a renewable source that is
available 24 hours a day, reduction of fossil fuel use, reduction of
air and water pollution, and new jobs.

(f) Biomethane can also be used as transportation fuel or
injected into natural gas pipelines for other uses. The most
appropriate use of biomethane varies depending on the source,
proximity to existing natural gas pipeline injection points or large
vehicle fleets, and the circumstances of existing facilities.

(g) The biomethane market has been slow to develop in
California because the collection, purification, and pipeline
injection of biomethane can be costly.

(h) Biomethane is poised to play a key role in future natural
gas and hydrogen fuel markets as a blendstock that can
significantly reduce the carbon footprint of these two fossil-based
alternative fuels.

(i) Biomethane is one of the most promising alternative vehicle
fuels because it generates the least net emissions of greenhouse
gases. According to the low-carbon fuel standard regulations
(Subarticle 7 (commencing with Section 95480) of Article 4 of
Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations) adopted by the State Air Resources
Board, vehicles running on biomethane generate significantly
lower emissions of greenhouse gases than vehicles running on
electricity or fossil fuel-derived hydrogen.

(j) The California Council on Science and Technology was
established by California academic research institutions, including
the University of California, the University of Southern California,
the California Institute of Technology, Stanford University, and
the California State University, and was organized as a nonprofit
corporation pursuant to Section 501(c)(3) of the Internal Revenue
Code, in response to Assembly Concurrent Resolution No. 162
(Resolution Chapter 148 of the Statutes of 1988).

(k) The California Council on Science and Technology was
uniquely established at the request of the Legislature for the
specific purpose of offering expert advice to state government on
public policy issues significantly related to science and technology.

(l) It is in the public’s interests, and in the interest of ratepayers
of the state’s gas corporations, that the policies and programs
adopted by the Public Utilities Commission be guided by the best
science reasonably available.

end insert

begin insert

begin insert SEC. 8. end insert   

Section 784.1 is added to the Public Utilities Code, to
read:

begin insert 784.1. end insert   

(a) The Legislature requests that the California Council
on Science and Technology undertake and complete a study
analyzing the regional and gas corporation specific issues relating
to minimum heating value and maximum siloxane specifications
for biomethane before it can be injected into common carrier gas
pipelines, including those specifications adopted in Sections 4.4.3.3
and 4.4.4 of commission Decision 14-01-034 (January 16, 2014),
Decision Regarding the Biomethane Implementation Tasks in
Assembly Bill 1900. The study shall consider and evaluate other
states’ standards, the source of biomethane, the dilution of
biomethane after it is injected into the pipeline, the equipment and
technology upgrades required to meet the minimum heating value
specifications, including the impacts of those specifications on the
cost, volume of biomethane sold, equipment operation, and safety.
The study shall also consider whether different sources of biogas
should have different standards or if all sources should adhere to
one standard for the minimum heating value and maximum
permissible level of siloxanes. The study shall develop the best
science reasonably available and not merely be a literature review.
In order to meet the state’s goals for reducing emissions of
greenhouse gases and short-lived climate pollutants and the state’s
goals for promoting the use of renewable energy resources in place
of burning fossil fuels, the California Council on Science and
Technology, if it agrees to undertake and complete the study, shall
complete the study within nine months of entering into a contract
to undertake and complete the study.

(b) (1) If the California Council on Science and Technology
agrees to undertake and complete the study pursuant to subdivision
(a), the commission shall require each gas corporation operating
common carrier pipelines in California to proportionately
contribute to the expenses to undertake the study pursuant to
Sections 740 and 740.1. The commission may modify the monetary
incentives made available pursuant to commission Decision
15-06-029 (June 11, 2015), Decision Regarding the Costs of
Compliance with Decision 14-01-034 and Adoption of Biomethane
Promotion Policies and Program, to allocate some of the moneys
that would be made available for incentives to instead be made
available to pay for the costs of the study so as to not further
burden ratepayers with additional expense.

(2) The commission’s authority pursuant to paragraph (1) shall
apply notwithstanding whether the gas corporation has proposed
the program pursuant to Section 740.1.

(c) If the California Council on Science and Technology agrees
to undertake and complete the study pursuant to subdivision (a),
within six months of its completion, the commission shall reevaluate
its requirements and standards adopted pursuant to Section 25421
of the Health and Safety Code relative to the requirements and
standards for biomethane to be injected into common carrier
pipelines and, if appropriate, change those requirements and
standards or adopt new requirements and standards, giving due
deference to the conclusions and recommendations made in the
study by the California Council on Science and Technology.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 2834 of the end insert begin insert Public Utilities Code end insert begin insert is repealed. end insert

begin delete

2834.  

This chapter shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2019, deletes or extends that date.

end delete

begin insert

begin insert SEC. 10. end insert   

(a) By March 31, 2017, the Public Utilities
Commission shall report to the relevant policy and fiscal
committees of the Legislature on its business process inventory
efforts. The report shall include documentation and measurement
of commission processes, including administrative and monitoring
processes shaped by law and judicial review, program performance
and communications pursuant to the commission’s rules and
procedures, and internal processes related to administration and
managing human resources.

(b) The report shall be submitted in compliance with Section
9795 of the Government Code.

(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on April 1, 2021.

end insert

begin insert

begin insert SEC. 11. end insert   

(a) By March 31, 2017, the Public Utilities
Commission shall report to the relevant policy and fiscal
committees of the Legislature on options to locate operations and
staff outside of the commission’s San Francisco headquarters. The
report shall explore options for leveraging additional facilities in
areas of the state, including Sacramento, that would allow the
commission to collaborate with other state entities and provide
staff more opportunities for training, career development, and
exchange placements with other state entities. The report shall do
both of the following:

(1) Consider categories of operations in different offices.

(2) Analyze recruitment and retention, salary disparities by
location based on duty statements, and costs associated with using
locations outside of San Francisco with no, or minimal, disruption
of current commission employees.

(b) The commission shall conduct one or more public workshops
to obtain suggestions, concerns, ideas, and comments from
stakeholders and interested members of the public in furtherance
of the purpose of the report.

(c) (1) The report shall be submitted in compliance with Section
9795 of the Government Code.

(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on April 1, 2021.

end insert

begin insert

begin insert SEC. 12. end insert   

The sum of two hundred seventy-five thousand dollars
($275,000) is hereby appropriated from the Appliance Efficiency
Enforcement Subaccount in the Energy Resources Programs
Account to the State Energy Resources Conservation and
Development Commission to support the Title 20 Appliance
Efficiency Standards Compliance Assistance and Enforcement
Program.

end insert

begin insert

begin insert SEC. 13. end insert   

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.

end insert

begin insert

begin insert SEC. 14. end insert   

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.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the 2016 Budget Act.

end delete

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CORRECTIONS:

Heading--Lines 1,2,3,4, and 5.

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