Amended in Senate June 23, 2016

Amended in Senate June 14, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1612

Introduced by Committee on Budget (Assembly Members Ting (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Holden, Irwin, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, and Williams)

January 7, 2016

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 begin insert to amend Sections 379.6, 388, 399.20, and 2827.10 of, end insert to add begin delete Section end delete begin insert Sections 388.2 and end 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.

LEGISLATIVE COUNSEL’S DIGEST

AB 1612, as amended, Committee on Budget. Public resources: energy.

(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.

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.

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. begin delete 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 delete

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Existing law requires the PUC to direct the electrical corporations to collectively procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013. Existing law requires the PUC, for each electrical corporation, to allocate shares of the 250 megawatts based on the ratio of each electrical corporation’s peak demand compared to the total statewide peak demand. Existing law requires the PUC to allocate those 250 megawatts to electrical corporations from specified categories of bioenergy project types, with specified portions of that 250 megawatts to be allocated from each category. Existing law requires the PUC to encourage gas and electrical corporations to develop and offer programs and services to facilitate development of in-state biogas for a broad range of purposes. Existing law authorizes the PUC, in consultation with specified state agencies, if it finds that the categorical allocations of those 250 megawatts are not appropriate, to reallocate those 250 megawatts among those categories.

end insert begin insert

This bill would establish interconnection requirements for certain bioenergy projects from which generation capacity is to be procured pursuant to the above requirement. Because the above requirements would be codified in the act, this bill would impose a state-mandated local program by creating a new crime.

end insert begin insert

Existing law requires the PUC to require the administration, until January 1, 2021, of a self-generation incentive program for distributed generation resources and energy storage technologies. Existing law authorizes the PUC, in consultation with the State Energy Resources Conservation and Development Commission, to authorize the annual collection of not more than the amount authorized for the program in the 2008 calendar year.

end insert begin insert

This bill would increase the maximum annual collection the PUC may authorize for the program to double the amount authorized for the program in the 2008 calendar year.

end 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.

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.

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.

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.

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Existing law requires an electrical corporation to file with the PUC a standard tariff providing for net energy meeting for eligible fuel cell customer-generators and make the tariff available, on a first-come-first-served basis, until the total cumulative rated generating capacity of the eligible fuel cell electrical generating facilities receiving service pursuant to the tariff reaches a level equal to the electrical corporation’s proportionate share of a statewide limitation of 500 megawatts cumulative rated generation capacity served (program cap). Existing law requires the eligible fuel cell customer-generator to meet certain requirements, including requirements that the customer-generator uses: (A) a fuel cell electrical generation facility with a capacity of not more than one megawatt and (B) technology the PUC has determined will achieve certain reductions in emissions of greenhouse gases. Existing law provides that fuel cell electrical generation facilities are not eligible for the tariff unless the facilities commence operation prior to January 1, 2017.

end insert begin insert

This bill would increase the program cap by authorizing 500 megawatts in addition to the total installed capacity as of January 1, 2017. The bill would make 5 megawatts the maximum amount of generation of a fuel cell electrical generation facility that may be included in the program. The bill would require, by March 31, 2017, the State Air Resources Board, in consultation with the Energy Commission, to establish a schedule of annual greenhouse gas emissions reduction standards, as specified, for fuel cell electrical generation resources and would require the PUC to determine if the technology used by the eligible fuel cell customer-generator will achieve those standards. The bill would require the fuel cell electrical generation resource to comply with emission standards adopted by the State Air Resources Board under the distributed generation certification program.

end insert begin insert

This bill would provide that fuel cell electrical generation facilities are not eligible for the tariff unless the facilities commence operation on or before December 31, 2021.

end insert

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

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.

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.

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.

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(3) Existing law authorizes the Department of General Services or any other state or local agency intending to enter into an energy savings contract to establish a pool of qualified energy service companies, as specified. Existing law authorizes energy service contracts for individual projects undertaken by any state or local agency to be awarded through a competitive selection process to those companies identified in the pool.

end insert begin insert

This bill would authorize the department or another state or local agency intending to enter into contracts for energy retrofit projects, as defined, to establish one of those pools. The bill would, until January 1, 2020, authorize the department and other state agencies to establish one or more pools of qualified energy service companies, as defined, that have provided the department or state agency with a specific enforceable commitment regarding the use of a skilled and trained workforce. The bill would authorize the department or state agency to select a qualified energy service company from that pool for a specific energy retrofit project on a rotational basis. The bill would require those qualified energy service companies working on a contract or project to submit a monthly report to the department or state agency, as appropriate, demonstrating their compliance with the commitment regarding the use of a skilled and trained workforce.

end insert begin delete

(3)

end delete

begin insert (4) end insert  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.

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.

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.

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.

begin delete

(4)

end delete

begin insert (5) end insert  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.

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.

begin delete

(5)

end delete

begin insert (6) end insert  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.

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.

begin delete

(6)

end delete

begin insert (7) end insert  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.

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.

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(8) Because certain provisions of this bill would be part of the Public Utilities Act, the violation of which is a crime, this bill would impose a state-mandated local program.

end insert begin delete

(7)

end delete

begin insert (9) end insert  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.

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(8)

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begin insert (10) end insert  This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 51013.1 of the Government Code is
amended to read:

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.

(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.

SEC. 2.  

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

51015.6.  

(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.

SEC. 3.  

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

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.

(b) 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.

SEC. 4.  

Section 1546.1 of the Penal Code is amended to read:

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.

(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.

SEC. 5.  

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

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 operations,
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 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.

(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.

SEC. 6.  

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

25751.  

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

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

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

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

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

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

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

(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.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 379.6 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

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
begin insert double end insert 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 (NO_x) emissions rate standard of 0.07
pounds per megawatthour and a minimum efficiency of 60 percent,
or any other NO_x 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 NO_x
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 NO_x emissions standard is eligible if it meets both
of the following requirements:

(A) The project operates solely on waste gas. The commission
shall require a customer that applies for an incentive pursuant to
this paragraph to provide an affidavit or other form of proof that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
“waste gas” means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery
to the utility pipeline system.

(B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit compared to permitted onsite emissions if the project does
not operate. The commission shall require the customer to secure
the permit prior to receiving incentives.

(d) In determining the eligibility for the self-generation incentive
program, minimum system efficiency shall be determined either
by calculating electrical and process heat efficiency as set forth in
Section 216.6, or by calculating overall electrical efficiency.

(e) Eligibility for incentives under the program shall be limited
to distributed energy resource technologies that the commission
determines meet all of the following requirements:

(1) The distributed energy resource technology shifts onsite
energy use to off-peak time periods or reduces demand from the
grid by offsetting some or all of the customer’s onsite energy load,
including, but not limited to, peak electric load.

(2) The distributed energy resource technology is commercially
available.

(3) The distributed energy resource technology safely utilizes
the existing transmission and distribution system.

(4) The distributed energy resource technology improves air
quality by reducing criteria air pollutants.

(f) Recipients of the self-generation incentive program funds
shall provide relevant data to the commission and the State Air
Resources Board, upon request, and shall be subject to onsite
inspection to verify equipment operation and performance,
including capacity, thermal output, and usage to verify criteria air
pollutant and greenhouse gas emissions performance.

(g) In administering the self-generation incentive program, the
commission shall determine a capacity factor for each distributed
generation system energy resource technology in the program.

(h) (1) In administering the self-generation incentive program,
the commission may adjust the amount of rebates and evaluate
other public policy interests, including, but not limited to,
ratepayers, energy efficiency, peak load reduction, load
management, and environmental interests.

(2) The commission shall consider the relative amount and the
cost of greenhouse gas emissions reductions, peak demand
reductions, system reliability benefits, and other measurable factors
when allocating program funds between eligible technologies.

(i) The commission shall ensure that distributed generation
resources are made available in the program for all ratepayers.

(j) In administering the self-generation incentive program, the
commission shall provide an additional incentive of 20 percent
from existing program funds for the installation of eligible
distributed generation resources manufactured in California.

(k) The costs of the program adopted and implemented pursuant
to this section shall not be recovered from customers participating
in the California Alternate Rates for Energy (CARE) program.

(l) The commission shall evaluate the overall success and impact
of the self-generation incentive program based on the following
performance measures:

(1) The amount of reductions of emissions of greenhouse gases.

(2) The amount of reductions of emissions of criteria air
pollutants measured in terms of avoided emissions and reductions
of criteria air pollutants represented by emissions credits secured
for project approval.

(3) The amount of energy reductions measured in energy value.

(4) The amount of reductions of customer peak demand.

(5) The ratio of the electricity generated by distributed energy
resource generation projects receiving incentives from the program
to the electricity capable of being produced by those projects,
commonly known as a capacity factor.

(6) The value to the electrical transmission and distribution
system measured in avoided costs of transmission and distribution
upgrades and replacement.

(7) The ability to improve onsite electricity reliability as
compared to onsite electricity reliability before the self-generation
incentive program technology was placed in service.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 388 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

388.  

(a) Notwithstanding any other provision of law, begin delete any end delete begin insert a end insert
state agency may enter into an energy savings contract with a
qualified energy service company for the purchase or exchange of
thermal or electrical energy or water, or to acquire energy
efficiency begin delete and/or end delete begin insert or end insert water conservation begin delete services, end delete begin insert services, or both
energy efficiency and water conservation services end insert for a term not
exceeding 35 years, at begin delete those end delete rates and upon those terms begin delete that are end delete
approved by the agency.

(b) The Department of General Services or any other state or
local agency intending to enter into an energy savings contract begin insert or
a contract for an energy retrofit project end insert may establish a pool of
qualified energy service companies based on qualifications,
experience, begin delete pricing end delete begin insert pricing, end insert or other pertinent factors. Energy
service contracts for individual projects undertaken by any state
or local agency may be awarded through a competitive selection
process to individuals or firms identified in begin delete such a end delete begin insert the end insert pool. The
pool of qualified energy service companies and contractors shall
be reestablished at least every two years or shall expire.

(c) For purposes of this section, the following definitions apply:

begin insert

(1) (A) “Energy retrofit project” means a project for which the
state or local agency works with a qualified energy service
company to identify, develop, design, and implement energy
conservation measures in existing facilities to reduce energy or
water use or make more efficient use of energy or water.

end insert begin insert

(B) “Energy retrofit project” does not include the erection or
installation of a power generation system, a power purchase
agreement, or a project utilizing a site license or lease agreement.

end insert begin delete

(1)

end delete

begin insert (2) end insert  “Energy savings” means a measured and verified reduction
in fuel, begin delete energy end delete begin insert energy, end insert or water consumption when compared to
an established baseline of consumption.

begin delete

(2)

end delete

begin insert (3) end insert  “Qualified energy service company” means a company with
a demonstrated ability to provide or arrange for building or facility
energy auditors, selection and design of appropriate energy savings
measures, project financing, implementation of these measures,
and maintenance and ongoing measurement of these measures as
to ensure and verify energy savings.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 388.2 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 388.2. end insert   

(a) For purposes of this section, the following
definitions apply:

(1) “Apprenticeable occupation” means an occupation for
which the chief has approved an apprenticeship program pursuant
to Section 3075 of the Labor Code before January 1, 2014.

(2) “Chief” means the Chief of the Division of Apprenticeship
Standards of the Department of Industrial Relations.

(3) “Department” means the Department of General Services.

(4) (A) “Energy retrofit project” means a project for which the
state works with a qualified energy service company to identify,
develop, design, and implement energy conservation measures in
existing facilities to reduce energy or water use or make more
efficient use of energy or water.

(B) “Energy retrofit project” does not include the erection or
installation of a power generation system, a power purchase
agreement, or a project utilizing a site license or lease agreement.

(5) “Energy savings” means a measured and verified reduction
in fuel, energy, or water consumption when compared to an
established baseline of consumption.

(6) “Enforceable commitment” means an enforceable agreement
with the department or state agency that the entity and its
subcontractors at every tier will comply with this section.

(7) (A) “Qualified energy service company” means a company
with a demonstrated ability to provide or arrange for building or
facility energy auditors, selection and design of appropriate energy
savings measures, project financing, implementation of these
measures, and maintenance and ongoing measurement of these
measures as to ensure and verify energy savings.

(B) An entity is not a qualified energy service company unless
the entity has provided to the agency an enforceable commitment
that the entity and its subcontractors at every tier will use a skilled
and trained workforce to perform all work on the project or
contract that falls within an apprenticeable occupation in the
building and construction trades.

(8) “Skilled and trained workforce” means a workforce that
meets all of the following conditions:

(A) All workers performing work in an apprenticeable
occupation in the building and construction trades are either
skilled journeypersons or apprentices in an apprenticeship
program approved by the chief.

(B) (i) Except as provided in clause (ii), at least 60 percent of
the skilled journeypersons employed to perform work on a contract
or project by every contractor and each of its subcontractors at
every tier are graduates of an apprenticeship program that was
either approved by the chief pursuant to Section 3075 of the Labor
Code, or an apprenticeship program located outside the state that
is approved pursuant to the apprenticeship regulations adopted
by the United States Secretary of Labor, for the applicable
occupation.

(ii) For an apprenticeable occupation in which no
apprenticeship program had been approved by the chief before
January 1, 1995, up to one-half of the requirement in clause (i)
may be satisfied by skilled journeypersons who commenced
working in an apprenticeable occupation before the chief’s
approval of an apprenticeship program in the county in which the
project is located.

(iii) The requirements of this subparagraph are satisfied if, in
a particular calendar month, either of the following is true:

(I) The percentage of the skilled journeypersons employed by
the contractor or subcontractor to perform work on the contract
or project is at least equal to 60 percent.

(II) For the hours of work performed by skilled journeypersons
employed by the contractor or subcontractor on the contract or
project, the percentage of hours performed by skilled
journeypersons is at least equal to 60 percent.

(iv) This subparagraph does not apply to a contractor or
subcontractor if, during the calendar month, the contractor or
subcontractor employs skilled journeypersons to perform fewer
than 10 hours of work on the contract or project.

(v) This subparagraph does not apply to a subcontractor if both
of the following are true:

(I) The subcontractor is not a listed subcontractor in the
investment grade audit or a substitute for a listed subcontractor.

(II) The subcontract does not exceed one-half of 1 percent of
the price of the prime contract.

(9) “Skilled journeyperson” means a worker who is being paid
at least the prevailing rate or per diem wages published by the
Department of Industrial Relations for the occupation and
geographic area and who either:

(A) Graduated from an apprenticeship program that was either
approved by the chief pursuant to Section 3075 of the Labor Code,
or an apprenticeship program located outside the state that is
approved pursuant to the apprenticeship regulations adopted by
the United States Secretary of Labor, for the applicable occupation.

(B) Has at least as many hours of on-the-job training experience
in the applicable occupation as would be required to graduate
from an apprenticeship program for the applicable occupation
that is approved by the chief.

(b) (1) The department or any other state agency intending to
enter into an energy savings contract for an energy retrofit project
may establish one or more pools of qualified energy services
companies based on qualification, experience, pricing, or other
pertinent factors. The department or state agency may select a
qualified energy service company identified in the pool for a
contract for a specific energy retrofit project on a rotational basis.

(2) The department or state agency has the exclusive authority
to reject the plan or proposal of a qualified energy service company
selected for an energy retrofit project pursuant to paragraph (1)
and may continue the selection process until a satisfactory proposal
is identified.

(c) (1) A qualified energy service company working on an
energy retrofit project shall submit to the department or state
agency, as appropriate, on a monthly basis, a report demonstrating
compliance with this section.

(2) If the qualified energy service company fails to submit the
monthly report or submits a report that is incomplete, the
department or state agency, as appropriate, shall withhold further
payments until a complete report is submitted.

(3) The monthly report is a public record under the California
Public Records Act (Chapter 3.5 (commencing with Section 6250)
of Division 7 of Title 1 of the Government Code) and shall be
available for public inspection.

(d) Prior to performing an investment grade audit, the
department or other state agency shall provide a public notification
that includes the project location, assigned energy services
company, and the appropriate contact information on the
department’s Internet Web site.

(e) Subparagraph (B) of paragraph (7) of subdivision (a) and
subdivision (c) do not apply if either of the following applies:

(1) The department or state agency, as appropriate, has entered
into a project labor agreement, as defined in paragraph (1) of
subdivision (b) of Section 2500 of the Public Contract Code, that
will bind all contractors and subcontractors performing work on
the project or contract and the entity agrees to be bound by that
project labor agreement.

(2) The entity has entered into a project labor agreement, as
defined in paragraph (1) of subdivision (b) of Section 2500 of the
Public Contract Code, that will bind the entity and all contractors
and subcontractors at every tier performing the project or contract.

(f) Subparagraph (B) of paragraph (7) of subdivision (a) and
subdivision (c) do not apply to work performed by the California
Conservation Corps that is nontrades and nonconstruction related.

(g) This section is not intended to waive other terms and
conditions applicable to a state contract for an energy retrofit
project.

(h) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 399.20 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

399.20.  

(a) It is the policy of this state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.

(b) As used in this section, “electric generation facility” means
an electric generation facility located within the service territory
of, and developed to sell electricity to, an electrical corporation
that meets all of the following criteria:

(1) Has an effective capacity of not more than three megawatts.

(2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.

(3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load centers.

(4) Is an eligible renewable energy resource.

(c) Every electrical corporation shall file with the commission
a standard tariff for electricity purchased from an electric
generation facility. The commission may modify or adjust the
requirements of this section for any electrical corporation with less
than 100,000 service connections, as individual circumstances
merit.

(d) (1) The tariff shall provide for payment for every
kilowatthour of electricity purchased from an electric generation
facility for a period of 10, 15, or 20 years, as authorized by the
commission. The payment shall be the market price determined
by the commission pursuant to paragraph (2) and shall include all
current and anticipated environmental compliance costs, including,
but not limited to, mitigation of emissions of greenhouse gases
and air pollution offsets associated with the operation of new
generating facilities in the local air pollution control or air quality
management district where the electric generation facility is
located.

(2) The commission shall establish a methodology to determine
the market price of electricity for terms corresponding to the length
of contracts with an electric generation facility, in consideration
of the following:

(A) The long-term market price of electricity for fixed price
contracts, determined pursuant to an electrical corporation’s general
procurement activities as authorized by the commission.

(B) The long-term ownership, operating, and fixed-price fuel
costs associated with fixed-price electricity from new generating
facilities.

(C) The value of different electricity products including
baseload, peaking, and as-available electricity.

(3) The commission may adjust the payment rate to reflect the
value of every kilowatthour of electricity generated on a
time-of-delivery basis.

(4) The commission shall ensure, with respect to rates and
charges, that ratepayers that do not receive service pursuant to the
tariff are indifferent to whether a ratepayer with an electric
generation facility receives service pursuant to the tariff.

(e) An electrical corporation shall provide expedited
interconnection procedures to an electric generation facility located
on a distribution circuit that generates electricity at a time and in
a manner so as to offset the peak demand on the distribution circuit,
if the electrical corporation determines that the electric generation
facility will not adversely affect the distribution grid. The
commission shall consider and may establish a value for an electric
generation facility located on a distribution circuit that generates
electricity at a time and in a manner so as to offset the peak demand
on the distribution circuit.

(f) (1) An electrical corporation shall make the tariff available
to the owner or operator of an electric generation facility within
the service territory of the electrical corporation, upon request, on
a first-come-first-served basis, until the electrical corporation meets
its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under this section and
Section 387.6. The proportionate share shall be calculated based
on the ratio of the electrical corporation’s peak demand compared
to the total statewide peak demand.

(2) By June 1, 2013, the commission shall, in addition to the
750 megawatts identified in paragraph (1), direct the electrical
corporations to collectively procure at least 250 megawatts of
cumulative rated generating capacity from developers of bioenergy
projects that commence operation on or after June 1, 2013. The
commission shall, for each electrical corporation, allocate shares
of the additional 250 megawatts based on the ratio of each electrical
corporation’s peak demand compared to the total statewide peak
demand. In implementing this paragraph, the commission shall do
all of the following:

(A) Allocate the 250 megawatts identified in this paragraph
among the electrical corporations based on the following
categories:

(i) For biogas from wastewater treatment, municipal organic
waste diversion, food processing, and codigestion, 110 megawatts.

(ii) For dairy and other agricultural bioenergy, 90 megawatts.

(iii) For bioenergy using byproducts of sustainable forest
management, 50 megawatts. Allocations under this category shall
be determined based on the proportion of bioenergy that sustainable
forest management providers derive from sustainable forest
management in fire threat treatment areas, as designated by the
Department of Forestry and Fire Protection.

(B) Direct the electrical corporations to develop standard
contract terms and conditions that reflect the operational
characteristics of the projects, and to provide a streamlined
contracting process.

(C) Coordinate, to the maximum extent feasible, any incentive
or subsidy programs for bioenergy with the agencies listed in
subparagraph (A) of paragraph (3) in order to provide maximum
benefits to ratepayers and to ensure that incentives are used to
reduce contract prices.

(D) The commission shall encourage gas and electrical
corporations to develop and offer programs and services to facilitate
development of in-state biogas for a broad range of purposes.

(3) (A) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, the State
Air Resources Board, the Department of Forestry and Fire
Protection, the Department of Food and Agriculture, and the
Department of Resources Recycling and Recovery, may review
the allocations of the 250 additional megawatts identified in
paragraph (2) to determine if those allocations are appropriate.

(B) If the commission finds that the allocations of the 250
additional megawatts identified in paragraph (2) are not
appropriate, the commission may reallocate the 250 megawatts
among the categories established in subparagraph (A) of paragraph
(2).

begin insert

(4) (A) A project identified in clause (iii) of subparagraph (A)
of paragraph (2) is eligible, in regards to interconnection, for the
tariff established to implement paragraph (2) or to participate in
any program or auction established to implement paragraph (2),
if it meets at least one of the following requirements:

end insert begin insert

(i) The project is already interconnected.

end insert begin insert

(ii) The project has been found to be eligible for interconnection
pursuant to the fast track process under the relevant tariff.

end insert begin insert

(iii) A system impact study or other interconnection study has
been completed for the project under the relevant tariff, and there
was no determination in the study that, with the identified
interconnection upgrades, if any, a condition specified in
paragraph (2), (3), or (4) of subdivision (n) would exist. Such a
project is not required to have a pending, active interconnection
application to be eligible.

end insert begin insert

(B) For a project meeting the eligibility requirements pursuant
to clause (iii) of subparagraph (A) of this paragraph, both of the
following apply:

end insert begin insert

(i) The project is hereby deemed to be able to interconnect
within the required time limits for the purpose of determining
eligibility for the tariff.

end insert begin insert

(ii) The project shall submit a new application for
interconnection within 30 days of execution of a standard contract
pursuant to the tariff if it does not have a pending, active
interconnection application or a completed interconnection. For
those projects, the time to achieve commercial operation shall
begin to run from the date when the new system impact study or
other interconnection study is completed rather than from the date
of execution of the standard contract.

end insert begin delete

(4)

end delete

begin insert (5) end insert  For the purposes of this subdivision, “bioenergy” means
biogas and biomass.

(g) The electrical corporation may make the terms of the tariff
available to owners and operators of an electric generation facility
in the form of a standard contract subject to commission approval.

(h) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the electrical
corporation’s renewables portfolio standard annual procurement
targets for purposes of paragraph (1) of subdivision (b) of Section
399.15.

(i) The physical generating capacity of an electric generation
facility shall count toward the electrical corporation’s resource
adequacy requirement for purposes of Section 380.

(j) (1) The commission shall establish performance standards
for any electric generation facility that has a capacity greater than
one megawatt to ensure that those facilities are constructed,
operated, and maintained to generate the expected annual net
production of electricity and do not impact system reliability.

(2) The commission may reduce the three megawatt capacity
limitation of paragraph (1) of subdivision (b) if the commission
finds that a reduced capacity limitation is necessary to maintain
system reliability within that electrical corporation’s service
territory.

(k) (1) Any owner or operator of an electric generation facility
that received ratepayer-funded incentives in accordance with
Section 379.6 of this code, or with Section 25782 of the Public
Resources Code, and participated in a net metering program
pursuant to Sections 2827, 2827.9, and 2827.10 of this code prior
to January 1, 2010, shall be eligible for a tariff or standard contract
filed by an electrical corporation pursuant to this section.

(2) In establishing the tariffs or standard contracts pursuant to
this section, the commission shall consider ratepayer-funded
incentive payments previously received by the generation facility
pursuant to Section 379.6 of this code or Section 25782 of the
Public Resources Code. The commission shall require
reimbursement of any funds received from these incentive
programs to an electric generation facility, in order for that facility
to be eligible for a tariff or standard contract filed by an electrical
corporation pursuant to this section, unless the commission
determines ratepayers have received sufficient value from the
incentives provided to the facility based on how long the project
has been in operation and the amount of renewable electricity
previously generated by the facility.

(3) A customer that receives service under a tariff or contract
approved by the commission pursuant to this section is not eligible
to participate in any net metering program.

(l) An owner or operator of an electric generation facility
electing to receive service under a tariff or contract approved by
the commission shall continue to receive service under the tariff
or contract until either of the following occurs:

(1) The owner or operator of an electric generation facility no
longer meets the eligibility requirements for receiving service
pursuant to the tariff or contract.

(2) The period of service established by the commission pursuant
to subdivision (d) is completed.

(m) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the electrical corporation that receives the request shall
post a copy of the request on its Internet Web site. The information
posted on the Internet Web site shall include the name of the city
in which the facility is located, but information that is proprietary
and confidential, including, but not limited to, address information
beyond the name of the city in which the facility is located, shall
be redacted.

(n) An electrical corporation may deny a tariff request pursuant
to this section if the electrical corporation makes any of the
following findings:

(1) The electric generation facility does not meet the
requirements of this section.

(2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.

(3) The electric generation facility does not meet all applicable
state and local laws and building standards and utility
interconnection requirements.

(4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.

(o) Upon receiving a notice of denial from an electrical
corporation, the owner or operator of the electric generation facility
denied a tariff pursuant to this section shall have the right to appeal
that decision to the commission.

(p) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an inspection
and maintenance report to the electrical corporation at least once
every other year. The inspection and maintenance report shall be
prepared at the owner’s or operator’s expense by a
California-licensed contractor who is not the owner or operator of
the electric generation facility. A California-licensed electrician
shall perform the inspection of the electrical portion of the
generation facility.

(q) The contract between the electric generation facility
receiving the tariff and the electrical corporation shall contain
provisions that ensure that construction of the electric generating
facility complies with all applicable state and local laws and
building standards, and utility interconnection requirements.

(r) (1) All construction and installation of facilities of the
electrical corporation, including at the point of the output meter
or at the transmission or distribution grid, shall be performed only
by that electrical corporation.

(2) All interconnection facilities installed on the electrical
corporation’s side of the transfer point for electricity between the
electrical corporation and the electrical conductors of the electric
generation facility shall be owned, operated, and maintained only
by the electrical corporation. The ownership, installation, operation,
reading, and testing of revenue metering equipment for electric
generating facilities shall only be performed by the electrical
corporation.

begin delete

SEC. 7.  

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 delete

begin delete SEC. 8. end delete

begin insert SEC. 11. end insert   

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

784.1.  

(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.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 2827.10 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

2827.10.  

(a) As used in this section, the following terms have
the following meanings:

(1) “Electrical corporation” means an electrical corporation, as
defined in Section 218.

(2) “Eligible fuel cell electrical generating facility” means a
facility that includes the following:

(A) Integrated powerplant systems containing a stack, tubular
array, or other functionally similar configuration used to
electrochemically convert fuel to electricity.

(B) An inverter and fuel processing system where necessary.

(C) Other plant equipment, including heat recovery equipment,
necessary to support the plant’s operation or its energy conversion.

(3) (A) “Eligible fuel cell customer-generator” means a
customer of an electrical corporation that meets all the following
criteria:

(i) Uses a fuel cell electrical generating facility begin delete with a capacity
of not more than one megawatt end delete that is located on or adjacent to
the customer’s owned, leased, or rented premises, is interconnected
and operates in parallel with the electrical grid while the grid is
operational or in a grid independent mode when the grid is
nonoperational, and is sized to offset part or all of the eligible fuel
cell customer-generator’s own electrical requirements.

(ii) Is the recipient of local, state, or federal funds, or who
self-finances projects designed to encourage the development of
eligible fuel cell electrical generating facilities.

(iii) Uses technology the commission has determined will
achieve reductions in emissions of greenhouse gases pursuant to
subdivision begin delete (b), and meets the emission requirements for eligibility
for funding set forth in subdivision (c), of Section 379.6. end delete begin insert (b). end insert

begin insert

(B) Complies with the emissions standards adopted by the State
Air Resources Board pursuant to the distributed generation
certification program requirements of Section 94203 of Title 17
of the California Code Regulations, or any successor regulation.

end insert begin delete

(B)

end delete

begin insert (C) end insert  For purposes of this paragraph, a person or entity is a
customer of the electrical corporation if the customer is physically
located within the service territory of the electrical corporation
and receives bundled service, distribution service, or transmission
service from the electrical corporation.

(4) “Net energy metering” means measuring the difference
between the electricity supplied through the electrical grid and the
difference between the electricity generated by an eligible fuel cell
electrical generating facility and fed back to the electrical grid over
a 12-month period as described in subdivision (e). Net energy
metering shall be accomplished using a time-of-use meter capable
of registering the flow of electricity in two directions. If the existing
electrical meter of an eligible fuel cell customer-generator is not
capable of measuring the flow of electricity in two directions, the
eligible fuel cell 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 time-of-use meter.

begin insert

(b) (1) Not later than March 31, 2017, the State Air Resources
Board, in consultation with the Energy Commission, shall establish
a schedule of annual greenhouse gas emissions reduction standards
for a fuel cell electrical generation resource for purposes of clause
(iii) of subparagraph (A) of paragraph (3) of subdivision (a) and
shall update the schedule every three years with applicable
standards for each intervening year.

end insert begin insert

(2) The greenhouse gas emissions reduction standards shall
ensure that each fuel cell electrical generation resource, for
purposes of clause (iii) of subparagraph (A) of paragraph (3) of
subdivision (a), reduces greenhouse gas emissions compared to
the electrical grid resources, including renewable resources, that
the fuel cell electrical generation resource displaces, accounting
for both procurement and operation of the electrical grid.

end insert begin delete

(b)

end delete

begin insert (c) end insert  (1) Every electrical corporation, not later than March 1,
2004, shall file with the commission a standard tariff providing
for net energy metering for eligible fuel cell customer-generators,
consistent with this section. Subject to the limitation in subdivision
begin delete (f), end delete begin insert (e), end insert every electrical corporation shall make this tariff available
to eligible fuel cell customer-generators upon request, on a
first-come-first-served basis, until the total cumulative rated
generating capacity of the eligible fuel cell electrical generating
facilities receiving service pursuant to the begin delete tariff end delete begin insert tariff, in addition
to the installed capacity as of January 1, 2017, end insert reaches a level
equal to its proportionate share of a statewide limitation of 500
megawatts cumulative rated generation capacity served under this
section. The proportionate share shall be calculated based on the
ratio of the electrical corporation’s peak demand compared to the
total statewide peak demand.

(2) To continue the growth of the market for onsite electrical
generation using fuel cells, the commission may review and
incrementally raise the limitation established in paragraph (1) on
the total cumulative rated generating capacity of the eligible fuel
cell electrical generating facilities receiving service pursuant to
the tariff in paragraph (1).

begin insert

(3) Only the first five megawatts of a facility’s capacity shall
be eligible for the tariff established pursuant to this section.

end insert

(c)

begin insert (d) end insert  In determining the eligibility for the cumulative rated
generating capacity within an electrical corporation’s service
territory, preference shall be given to facilities that, at the time of
installation, are located in a community with significant exposure
to air contaminants or localized air contaminants, or both,
including, but not limited to, communities of minority populations
or low-income populations, or both, based on the ambient air
quality standards established pursuant to Division 26 (commencing
with Section 39000) of the Health and Safety Code.

begin delete

(d)

end delete

begin insert (e) end insert  (1) 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
customer would be assigned if the customer was not an eligible
fuel cell customer-generator. Any new or additional demand
charge, standby charge, customer charge, minimum monthly
charge, interconnection charge, or other charge that would increase
an eligible fuel cell customer-generator’s costs beyond those of
other customers in the rate class to which the eligible fuel cell
customer-generator would otherwise be assigned are contrary to
the intent of the Legislature in enacting this section, and shall not
form a part of net energy metering tariffs.

(2) The commission shall authorize an electrical corporation to
charge a fuel cell customer-generator a fee based on the cost to
the utility associated with providing interconnection inspection
services for that fuel cell customer-generator.

begin delete

(e)

end delete

begin insert (f) end insert  The net metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible fuel
cell customer-generator and the electricity generated by the eligible
fuel cell customer-generator and fed back to the electrical grid
over a 12-month period. The following rules shall apply to the
annualized metering calculation:

(1) The eligible fuel cell customer-generator shall, at the end
of each 12-month period following the date of final interconnection
of the eligible fuel cell electrical generating facility with an
electrical corporation, and at each anniversary date thereafter, be
billed for electricity used during that period. The electrical
corporation shall determine if the eligible fuel cell
customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
eligible fuel cell customer-generator was a net consumer or a net
producer of electricity during that period, the electrical corporation
shall aggregate the electrical load of the meters located on the
property where the eligible fuel cell electrical generating facility
is located and on all property adjacent or contiguous to the property
on which the facility is located, if those properties are solely
owned, leased, or rented by the eligible fuel cell
customer-generator. Each aggregated account shall be billed and
measured according to a time-of-use rate schedule.

(2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds
the electricity generated by the eligible fuel cell customer-generator
during that same period, the eligible fuel cell customer-generator
is a net electricity consumer and the electrical corporation shall
be owed compensation for the eligible fuel cell
customer-generator’s net kilowatthour consumption over that same
period. The compensation owed for the eligible fuel cell
customer-generator’s consumption shall be calculated as follows:

(A) The generation charges for any net monthly consumption
of electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible
for if the customer was not an eligible fuel cell customer-generator.
When the eligible fuel cell customer-generator is a net generator
during any discrete time-of-use period, the net kilowatthours
produced shall be valued at the same price per kilowatthour as the
electrical corporation would charge for retail kilowatthour sales
for generation, exclusive of any surcharges, during that same
time-of-use period. If the eligible fuel cell customer-generator’s
time-of-use electrical meter is unable to measure the flow of
electricity in two directions, paragraph (4) of subdivision (a) shall
apply. All other charges, other than generation charges, shall be
calculated in accordance with the eligible fuel cell
customer-generator’s applicable tariff and based on the total
kilowatthours delivered by the electrical corporation to the eligible
fuel cell customer-generator. To the extent that charges for
transmission and distribution services are recovered through
demand charges in any particular month, no standby reservation
charges shall apply in that monthly billing cycle.

(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation’s normal billing cycle.

(3) At the end of each 12-month period, where the electricity
generated by the eligible fuel cell customer-generator during the
12-month period exceeds the electricity supplied by the electrical
corporation during that same period, the eligible fuel cell
customer-generator is a net electricity producer and the electrical
corporation shall retain any excess kilowatthours generated during
the prior 12-month period. The eligible fuel cell customer-generator
shall not be owed any compensation for those excess kilowatthours.

(4) If an eligible fuel cell customer-generator terminates service
with the electrical corporation, the electrical corporation shall
reconcile the eligible fuel cell customer-generator’s consumption
and production of electricity during any 12-month period.

begin delete

(f)

end delete

begin insert (g) end insert  A fuel cell electrical generating facility shall not be eligible
for the tariff unless it commences operation begin delete prior to January 1,
2017, end delete begin insert on or before December 31, 2021, end insert unless a later enacted
statute, that is chaptered begin insert on or end insert before begin delete January 1, 2017, end delete begin insert December
31, 2021, end insert extends this eligibility commencement date. The tariff
shall remain in effect for an eligible fuel cell electrical generating
facility that commences operation pursuant to the tariff begin delete prior to
January 1, 2017. end delete begin insert on or before December 31, 2021. end insert A fuel cell
customer-generator shall be eligible for the tariff established
pursuant to this section only for the operating life of the eligible
fuel cell electrical generating facility.

begin delete SEC. 9. end delete

begin insert SEC. 13. end insert   

Section 2834 of the Public Utilities Code is repealed.

begin delete SEC. 10. end delete

begin insert SEC. 14. 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.

begin delete SEC. 11. end delete

begin insert SEC. 15. 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.

begin delete SEC. 12. end delete

begin insert SEC. 16. 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.

begin insert

begin insert SEC. 17. end insert   

end insert begin insert

The Legislature finds and declares all of the following
regarding Section 11 of this act:

end insert begin insert

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

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

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

end insert begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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).

end insert begin insert

(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.

end insert begin insert

(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 delete SEC. 13. end delete

begin insert SEC. 18. 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.

begin delete SEC. 14. end delete

begin insert SEC. 19. 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.