Amended in Assembly June 17, 2015

Amended in Assembly June 16, 2015

Senate Bill No. 83

Introduced by Committee on Budget and Fiscal Review

January 9, 2015

An act to amend Sections 1504 and 2099.10 of the Fish and Game Code, to add Section 4103.5 to the Food and Agricultural Code, to amend Sections 6103.4 and 99523 of the Government Code, to amend Sections 8012, 8016, 25173.6, 44126, 116275, 116365, 116577, 116585, and 116595 of, to amend and repeal Sections 116570 and 116580 of, to amend, repeal, and add Sections 12723, 12726, 116565, and 116590 of, to add Section 57015 to, to add and repeal Section 57014 of, and to repeal Article 3 (commencing with Section 8025) of Chapter 5 of Part 2 of Division 7 of, the Health and Safety Code, to amend Sections 2795, 3401, 5005, 5097.94, 21190, 25422, 25464, 25471, 25806, and 42885.5 of, to add Article 2.5 (commencing with Section 3130) to Chapter 1 of Division 3 of, and to repeal Section 3132 of, the Public Resources Code, to amend Sections 2827 and 2851 of the Public Utilities Code, and to amend Section 13752 of the Water Code, relating to public resources, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 83, as amended, Committee on Budget and Fiscal Review. Public Resources.

(1) Existing law regulates real property acquired and operated by the state as wildlife management areas, and requires the Department of Fish and Wildlife, when income is directly derived from that real property, as provided, to annually pay to the county in which the property is located an amount equal to the county taxes levied upon the property at the time it was transferred to the state. Existing law further requires the department to pay the assessments levied upon the property by any irrigation, drainage, or reclamation district, and requires all of those payments to be made from funds available to the department.

This bill would authorize, instead of require, the department to make these payments and only from funds appropriated to the department for those purposes. The bill would also prohibit allocations of these moneys to a school district, community college district, or a county superintendent of schools.

(2) Existing law authorizes the California Science Center to enter into a site lease with the California Science Center Foundation, a California nonprofit public benefit corporation, with the approval of the Natural Resources Agency, the Department of Finance, and the Department of General Services, for the purpose of the foundation developing, constructing, equipping, furnishing, and funding the project known as Phase II of the California Science Center.

This bill would further authorize the California Science Center to enter into one or more agreements or leases with the California Science Center Foundation, with the approval of the Natural Resources Agency, the Department of Finance, and the Department of General Services, for the purpose of developing, designing, constructing, equipping, furnishing, operating, and funding the project known as the Phase III Project of the California Science Center. This bill would require the agreements or leases to include specific provisions that include, among others, provisions that the foundation agrees to indemnify, defend, and save harmless the state from any and all claims and losses arising out of the design and construction of the Phase III Project, the entire design and construction cost of the Phase III Project would be the sole responsibility of the foundation, and the foundation would develop the Phase III Project in a manner that is consistent with the state’s climate change goals, as specified.

(3) Existing law establishes the Repatriation Oversight Commission, comprised of 10 members, with specified duties relating to the process of repatriation of human remains or cultural items to the appropriate California Native American tribes. Existing law establishes the Native American Heritage Commission and vests the commission with specified powers and duties.

This bill would abolish the Repatriation Oversight Commission and require the Native American Heritage Commission to assume its duties and responsibilities, as provided, and would make conforming changes.

(4) Existing law requires various entities, including the State Fire Marshal, to seize certain prohibited fireworks. Existing law requires the State Fire Marshal to dispose of the fireworks in a manner prescribed by the State Fire Marshal.

This bill would, until January 1, 2016, instead require seized fireworks to be managed by the State Fire Marshal, would require the State Fire Marshall to contract with a federal permitted hazardous waste hauler for the hauling and disposal of seized illegal and dangerous fireworks, and would require the State Fire Marshall to store fireworks determined not to be hazardous, as provided.

Existing law authorizes the State Fire Marshal to dispose of dangerous fireworks after specified requirements are satisfied, including that a random sampling of the dangerous fireworks has been taken. Existing law requires the State Fire Marshal to acquire and use statewide mobile dangerous fireworks destruction units to collect and destroy seized dangerous fireworks from local and state agencies.

This bill would, until January 1, 2016, make those sampling and destruction provisions inoperative.

(5) The existing Hazardous Waste Control Law requires materials that require special handling, as defined, to be removed from major appliances in which they are contained before the crushing, baling, shredding, sawing, shearing apart, disposal, or other processing of the appliance in a manner that could result in the release or prevent the removal of those materials. Existing law prohibits a person who is not a certified appliance recycler from removing materials that require special handling from major appliances and imposes specified requirements regarding transporting, delivering, or selling discarded major appliances to a scrap recycling facility.

Existing law establishes the Toxic Substances Control Account in the General Fund. Existing law authorizes the moneys deposited in the account to be appropriated to the Department of Toxic Substances Control for specified purposes, including the administration and implementation of activities of the department related to pollution prevention and technology development authorized pursuant to the Hazardous Waste Control Law, and the department’s expenses for staff to perform oversight of investigations and characterizations, among other things.

This bill would, commencing July 1, 2015, and until June 30, 2018, authorize moneys in the Toxic Substances Control Account to be appropriated to the department for the administration and implementation of the Hazardous Waste Control Law as it applies to metal recycling facilities, as defined. The bill would, commencing July 1, 2015, and until June 30, 2017, also authorize moneys in the Toxic Substances Control Account to be appropriated to the department for review of the department’s enforcement of the Hazardous Waste Control Law.

Existing law requires the California Environmental Protection Agency, and the offices, boards, and departments within the agency, to institute quality government programs, as defined, to achieve increased levels of environmental protection and the public’s satisfaction through improving the quality, efficiency, and cost-effectiveness of the state programs that implement and enforce state and federal environmental protection statutes. Existing law requires the agency, and each board, department, and office within the agency, to submit a biennial report to the Governor and Legislature on the extent to which these agencies have attained their performance objectives, and on their continuous quality improvement efforts.

This bill would establish the assistant director for environmental justice in the department with specified duties.

This bill would also, until January 1, 2018, create an independent review panel within the department, comprising three members, to advise the department on issues related to the department’s reporting obligations, make recommendations for improving the department’s programs, advise the department on increasing levels of environmental protection in the department’s programs, and report to the Governor and the Legislature, as provided.

(6) Existing law creates the enhanced fleet modernization program to provide compensation for the retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. Existing law creates the Enhanced Fleet Modernization Subaccount, with the moneys in the subaccount available, upon appropriation by the Legislature, to the Department of Consumer Affairs and the Bureau of Automotive Repair to establish and implement the enhanced fleet modernization program.

This bill would additionally authorize the moneys in the Enhanced Fleet Modernization Subaccount to be available, upon appropriation, to the State Air Resources Board to implement and administer the enhanced fleet modernization program.

(7) Existing law generally prohibits the state, or a county, city, district, or other political subdivision, or any public officer or body acting in its official capacity on behalf of any of those entities, from being required to pay any fee for the performance of an official service. Existing law exempts from this provision any fee or charge for official services required pursuant to specified provisions of law relating to water use or water quality, including the fees charged to public water systems under the California Safe Drinking Water Act.

This bill would specifically exempt from that provision any fee or charge required pursuant to other provisions of law relating to water use and water quality, including the Safe Drinking Water State Revolving Fund Law of 1997 and provisions relating to cross-connections of water users, water treatment devices, and operator certification of water treatment plants and water distribution systems.

(8) The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various duties and responsibilities for the regulation and control of drinking water in the state. The act requires a public water system serving 1,000 or more service connections, and any public water system that treats water on behalf of one or more public water systems for the purpose of rendering it safe for human consumption, to reimburse the state board for the state board’s actual costs of conducting specified mandated activities that relate to that specific public water system. The act requires the state board to submit an invoice to the public water system according to specified provisions. The act requires a public water system serving fewer than 1,000 service connections to pay an annual drinking water operating fee to the state board, as specified, for the state board’s costs of conducting specified mandated activities relating to public water systems. The act authorizes the state board to increase this annual drinking water operating fee according to specified procedures. The act also requires a public water system serving less than 1,000 service connections applying for a domestic water supply permit to pay a permit application processing fee to the state board. The act requires a public water system under the jurisdiction of a local primacy agency to pay the above-described fees to the local primacy agency in lieu of the state board.

This bill would, on and after July 1, 2016, require the state board to adopt, by regulation, a fee schedule, to be paid annually by each public water system for the purpose of reimbursing the state board for specified activities. The bill would, on and after July 1, 2016, prohibit the reimbursement from exceeding the state board’s cost of conducting the activities, as specified. The bill would require the state board to set the total amount of revenue collected through the fee schedule to be equal to the amount appropriated by the Legislature in the annual Budget Act from the Safe Drinking Water Account for expenditure for the administration of the act. The bill would require the state board to review and revise the fee schedule each fiscal year, as necessary, and, if the state board determines that the amount of revenue collected during the preceding year was greater than, or less than, the amounts appropriated by the Legislature, the bill would authorize the state board to further adjust the fees. The bill would require the state board to adopt regulations subsequent to the initial regulations as emergency regulations.

This bill would allow the emergency regulations to include provisions relating to the administration and collection of fees and would require that any emergency regulations adopted by the state board, or adjustments to the annual fees, not be subject to review by the Office of Administrative Law and remain in effect until revised by the state board. The bill would require a public water system under the jurisdiction of a local primacy agency to pay these fees to the local primacy agency in lieu of the state board.

The act also generally requires each public water system to reimburse the state board for actual costs incurred by the state board for specified enforcement activities related to that water system and, for a public water system serving less than 1,000 service connections, restricts the maximum reimbursement to specified amounts. Under the act, the state board is not entitled to these enforcement costs if either a court or the state board determines that the enforcement activities were in error. The act imposes similar provisions upon a public water system under the jurisdiction of a local primacy agency.

This bill would delete the maximum reimbursement limitation for public water systems serving less than 1,000 service connections. The bill would require that payment of the invoice for reimbursement costs be made within 90 days of the date of the invoice, with a 10% late penalty, and would authorize the state board or local primacy agency to waive payment of all or any part of the invoice or penalty.

The act requires the state board to adopt primary drinking water standards for contaminants in drinking water and requires the Office of Environmental Health Hazard Assessment to prepare and publish an assessment of the risks to public health posed by each contaminant for which the state board proposes a primary drinking water standard. The act requires the risk assessment to contain an estimate of the level of the contaminant in drinking water that is not anticipated to cause or contribute to adverse health effects, or that does not pose a significant risk to health, known as the public health goal for the contaminant. The act authorizes any person, within 15 calendar days of completion of a specified public workshop on a risk assessment, to request the office to submit the risk assessment to external scientific peer review before the risk assessment’s publication, as specified. The act requires the office to submit the risk assessment to external scientific peer review if the person requesting the peer review agrees to fully reimburse the office for the costs associated with conducting the external scientific peer review.

This bill would delete the provision authorizing a person to request the office to submit the risk assessment to external scientific peer review and would instead require external scientific for peer review of the risk assessment pursuant to specified provisions of law.

(9) The Surface Mining and Reclamation Act of 1975 governs surface mining operations and the reclamation of mined lands. Existing law requires the first $2,000,000 of certain moneys from mining activities on federal lands disbursed by the United States each fiscal year to be deposited in the Surface Mining and Reclamation Account in the General Fund, which is authorized to be expended, upon appropriation by the Legislature, for the purposes of that act.

This bill instead would require moneys from mining activities on federal lands disbursed by the United States each fiscal year to be deposited in the account in an amount equal to the appropriation for the Surface Mining and Reclamation Act of 1975 contained in the annual Budget Act for that fiscal year.

(10) The federal Safe Drinking Water Act regulates certain wells as Class II wells, as defined. Under existing federal law, the authority to regulate Class II wells in California is delegated to the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation. Under existing law, the division implements the Underground Injection Control Program pursuant to this federal delegation. The federal act prohibits certain well activities that affect underground sources of drinking water, unless those sources are located in an exempted aquifer. Existing federal law authorizes a state delegated with the responsibility of regulating Class II wells to propose that an aquifer or a portion of an aquifer be an exempted aquifer and authorizes the United States Environmental Protection Agency (USEPA) to approve the proposal if the aquifer or a portion of the aquifer meets certain criteria.

This bill would require the division, prior to proposing an aquifer or a portion of an aquifer for exemption, to consult with the State Water Resources Control Board and the appropriate regional water quality control board concerning conformity of the proposal with certain requirements. If the division and the state board concur that the exemption proposal may merit consideration by the USEPA, the bill would require those agencies to provide a public comment period on the proposal and to jointly conduct a public hearing. If, after the review of public comments, those agencies concur that the exemption proposal merits consideration by the USEPA, the bill would require the division to submit the exemption proposal to that federal agency. The bill, until March 1, 2019, would also require the division to notify the relevant policy committees of the Legislature before submitting the exemption proposal to USEPA.

This bill would require the Department of Conservation and the State Water Resources Control Board, by January 30, 2016, and every 6 months thereafter, until March 1, 2019, to provide to the fiscal and relevant policy committees of the Legislature certain reports regarding the implementation of the Underground Injection Control Program. The bill would require the state board, by January 30, 2016, and every 6 months thereafter, until March 1, 2019, to post on its Internet Web site a report on the status of the regulation of oil field produced water ponds within each region of the regional water quality control boards.

This bill would also require the Secretary for Environmental Protection and the Secretary of the Natural Resources Agency to appoint an independent review panel to evaluate the Underground Injection Control Program and to make recommendations on how improve the effectiveness of the program.

(11) 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.

This bill would additionally authorize the use of those moneys 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.

(12) Existing law establishes the California Environmental Protection Program, which provides funding for identifiable projects and programs of state agencies and others that have a clearly defined benefit to the people of the state and have one or more specified environmental protection purposes including, among other things, pollution control, the acquisition of land for natural areas or ecological reserves, and the purchase of real property consisting of sensitive natural areas for the state park system and for local and regional parks. Existing law authorizes the issuance of environmental license plates, as defined, for vehicles, upon application and payment of certain fees, and requires that specified revenues derived from those fees be deposited in the California Environmental License Plate Fund in the State Treasury and used, upon appropriation, for program purposes.

This bill would additionally authorize the moneys in the fund to be used, upon appropriation, for deferred maintenance projects at state parks.

This bill would require the Natural Resources Agency, no later than October 1, 2015, in collaboration with the relevant policy committees of the Senate and the Assembly, to convene a working group to review and make recommendations regarding legislative and other action that may be necessary to adjust the priorities for the expenditure of moneys from the Environmental License Plate Fund.

(13) Existing law authorizes the Department of Parks and Recreation to receive and accept in the name of the people of the state any gift, dedication, devise, grant, or other conveyance of title to or any interest in real property and to be added or used in connection with the state park system and to receive and accept gifts, donations, contributions, or bequests of money and personal property to be used for state park purposes, subject to the approval of the Director of Finance, except as provided.

This bill would, authorize the department to receive and accept conditional gifts or bequests of money valued at $100,000 or less without the approval of the director, but would require the department to annually report those gifts or bequests of money to the Department of Finance.

(14) The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission and requires it to certify sufficient sites and related facilities that are required to provide a supply of electricity sufficient to accommodate projected demand for power statewide. Existing law requires that a person who submits an application to the commission for a proposed generating facility submit with the application a fee of $250,000, plus $500 per megawatt of gross generating capacity, not to exceed $750,000, as adjusted for inflation.

This bill would require that a person who submits a petition to amend an existing project that previously received certification to submit with the petition a fee of $5,000. The bill would require the commission to conduct a full accounting of the actual cost of processing the petition to amend, for which the project owner would be required to reimburse the commission, with total fees owed by the project owner pursuant to each petition to amend not to exceed $750,000, as adjusted for inflation. The bill would delete a requirement that the commission report specified information to the Legislature by July 1, 2012.

(15) Existing law establishes the Energy Efficient State Property Revolving Fund, a continuously appropriated fund, administered by the Department of General Services for loans for projects on state-owned buildings and facilities to achieve greater long-term energy efficiency, energy conservation, and energy cost and use avoidance. Existing law, for the 2009-10 fiscal year, transfers $25,000,000 from moneys received by the State Energy Resources Conservation and Development Commission from the federal American Recovery and Reinvestment Act of 2009.

Existing law establishes the State Energy Conservation Assistance Account administered by the commission for grants and loans to local government and public institutions for projects to maximize energy savings in existing and planned buildings or facilities. Existing law authorizes the commission to augment funding for grants and loans from federal funds, including the federal American Recovery and Reinvestment Act of 2009. Existing law requires the establishment of a separate subaccount in the State Energy Conservation Assistance Account to track the award and repayment of loans from federal funds.

Existing law establishes the Clean and Renewable Energy Business Financing Revolving Loan Program and authorizes the commission to use funds available to the commission from the federal American Recovery and Reinvestment Act of 2009 (federal moneys) to provide low interest loans to California clean and renewable energy manufacturing businesses.

This bill would require the commission to transfer, as specified, to the Energy Efficient State Property Revolving Fund repayments of, and accrued interest on, loans funded by those federal moneys and made from to the State Energy Conservation Assistance Account or pursuant to the Clean and Renewable Energy Business Financing Revolving Loan Program. Because the moneys transferred would be used for a new purpose, this bill would make an appropriation.

(16) Existing law requires the California-Mexico Border Relations Council to coordinate activities of state agencies that are related to cross-border programs, initiatives, projects, and partnerships that exist within state government, to improve the effectiveness of state and local efforts that are of concern between California and Mexico, and to identify and recommend to the Legislature changes necessary to achieve this goal. Existing law requires the council to annually submit a report to the Legislature on its activities.

This bill would also require the council to establish the Border Region Solid Waste Working Group to develop and coordinate long-term solutions to address and remediate problems associated with waste tires, solid waste, and excessive sedimentation along the border, as specified, and would require the council to identify and recommend to the Legislature changes in law necessary to achieve these goals.

The California Tire Recycling Act requires the Department of Resources Recycling and Recovery to administer a tire recycling program, and imposes a California tire fee on a new tire purchased in the state. The revenue generated from the fee is deposited in the California Tire Recycling Management Fund for expenditure, upon appropriation by the Legislature, for programs related to waste tires, including border region activities. Under the act, border region activities include the development of a waste tire abatement plan and the development of projects in Mexico in the California-Mexico border region, including education, infrastructure, mitigation, cleanup, prevention, reuse, and recycling projects that address the movement of used tires from California to Mexico that are eventually disposed of in California.

This bill would instead specify that border region activities include the development of a waste tire abatement plan, in coordination with the California-Mexico Border Relations Council, which may also provide for the abatement of solid waste. The bill would instead provide that border region activities include the development of projects in Mexico in the California-Mexico border region that address the movement of used tires from California to Mexico, and support the cleanup of illegally disposed waste tires and solid waste along the border that could negatively impact California’s environment.

This bill would appropriate $300,000 from the California Tire Recycling Management Fund to the California Environmental Protection Agency to support the California-Mexico Relations Council.

(17) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires every electric utility, as defined, to develop a standard contract or tariff providing for net energy metering, as defined, and to make this contract or tariff available to eligible customer-generators, as defined, upon request for generation by a renewable electrical generation facility, as defined.

This bill would include as an eligible customer-generator, a United States Armed Forces base or facility, as defined, if the base or facility uses a renewable electrical generation facility, or a combination of those facilities, that is located on premises owned, leased, or rented by the base or facility, is interconnected and operates in parallel with the electrical grid, is intended primarily to offset part or all of the base or facility’s own electrical requirements, and has a generating capacity that does not exceed the lesser of 12 megawatts or one megawatt greater than the minimum load of the base or facility over the prior 36 months.

Existing law requires that every electric utility ensure that requests for an interconnection agreement from an eligible customer-generator are processed in a time period not to exceed 30 working days from the date it receives a completed application form from the eligible customer-generator for an interconnection agreement.

This bill would require that an electrical corporation be afforded a prudent but necessary time, as determined by the executive director of the commission, to study the impacts of a request for interconnection of a renewable electrical generation facility with a capacity of greater than one megawatt that is located on a United States Armed Forces base or facility. If the study reveals the need for upgrades to the transmission or distribution system arising solely from the interconnection, this bill would require that the electrical corporation be afforded the time necessary to complete those upgrades before the interconnection and that the costs of those upgrades be borne by the a United States Armed Forces base or facility.

The bill would require an electrical corporation to make a tariff, to be approved by the commission, available pursuant to the above requirements for a United States Armed Forces base or facility by November 1, 2015.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because these provisions require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.

(18) Decisions of the Public Utilities Commission adopted the California Solar Initiative administered by electrical corporations and subject to the Public Utilities Commission’s supervision. Existing law requires the Public Utilities Commission and State Energy Resources Conservation and Development Commission to undertake certain steps in implementing the California Solar Initiative and requires the Public Utilities Commission 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 State Energy Resources Conservation and Development 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 Public Utilities Commission, upon notification by the State Energy Resources Conservation and Development Commission, to require those electrical corporations to continue the administration of the program pursuant to the guidelines established by the State Energy Resources Conservation and Development Commission for the program until the $400,000,000 monetary limit is reached. Existing law authorizes an electrical corporation to elect to have a 3rd party, including the State Energy Resources Conservation and Development Commission, administer the electrical corporation’s continuation of the program.

This bill would make the New Solar Homes Partnership Program inoperative on June 1, 2018. If the Public Utilities Commission requires the continuation of the program pursuant to the above authorization, the bill would authorize the Public Utilities Commission to determine whether a third party, including the State Energy Resources Conservation and Development Commission should implement the continuation of the program and would require any funding made available to be encumbered no later than June 1, 2018, and disbursed no later than December 31, 2021.

(19) Existing law requires a person who digs, bores, or drills a water well, cathodic protection well, or a monitoring well, or abandons or destroys a well, or deepens or reperforates a well, to file a report of completion with the Department of Water Resources. Existing law prohibits those reports from being made available to the public, except under certain circumstances.

This bill would instead require these reports to be made available to governmental agencies and to the public, upon request, as prescribed. The bill would authorize the department to charge a fee for the provision of a report to the public that does not exceed the reasonable costs to the department of providing the report.

(20) The California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002, a measure approved by the voters at the March 5, 2002, statewide general election, authorizes, for the purposes of financing certain acquisition and development projects, the issuance of bonds in the amount of $2,600,000,000. Of that amount, the act requires $832,500,000 be available for appropriation for specified local assistance programs and requires that any grant funds that have been appropriated pursuant to these provisions, but have not been expended before July 1, 2011, be reverted back to the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Fund. The act requires reverted funds be available for appropriation by the Legislature for the specified local assistance programs.

This bill would make available, of the funds that have been reverted to the fund and upon appropriation, $10,000,000 for outdoor environmental education and recreation programs, consistent with the above-described local assistance programs.

(21) 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.

(22) 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 1504 of the Fish and Game Code is
amended to read:

1504.  

(a) When income is derived directly from real property
acquired and operated by the state as a wildlife management area,
and regardless of whether income is derived from property acquired
after October 1, 1949, the department may pay annually to the
county in which the property is located an amount equal to the
county taxes levied upon the property at the time title to the
property was transferred to the state. The department may also pay
the assessments levied upon the property by any irrigation,
drainage, or reclamation district.

(b) Any delinquent penalties or interest applicable to any of
those assessments made before September 9, 1953, are hereby
canceled and shall be waived.

(c) Payments provided by this section shall only be made from
funds that are appropriated to the department for the purposes of
this section.

(d) As used in this section, the term “wildlife management area”
includes waterfowl management areas, deer ranges, upland game
bird management areas, and public shooting grounds.

(e) Any payment made under this section shall be made on or
before December 10 of each year, with the exception of newly
acquired property for which payments shall be made pursuant to
subdivision (f).

(f) Any payments made for the purposes of this section shall be
made within one year of the date title to the property was
transferred to the state, or within 90 days from the date of
designation as a wildlife management area, whichever occurs first,
prorated for the balance of the year from the date of designation
as a wildlife management area to the 30th day of June following
the date of designation as a wildlife management area, and,
thereafter, payments shall be made on or before December 10 of
each year.

(g) Notwithstanding any other law, payments provided under
this section shall not be allocated to a school district, a community
college district, or a county superintendent of schools.

SEC. 2.  

Section 2099.10 of the Fish and Game Code is
amended to read:

2099.10.  

(a) (1) The Legislature finds and declares that it is
in the interest of the state that incidental take permit applications
submitted by renewable energy developers be processed by the
department in a timely, efficient, and thorough manner and the
department be funded adequately to review and process the
applications. It is further the intent of the Legislature that the
department work in a transparent and consultative manner with
renewable energy developers who apply for incidental take permits,
including as described in this section and Section 2099.20.

(2) For purposes of this section and Section 2099.20, the
following terms have the following meanings:

(A) “Eligible project” means an eligible renewable energy
resource, as defined in the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)
of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).

(B) “Energy Commission” means the State Energy Resources
Conservation and Development Commission.

(b)  The department shall collect the following permit
application fee from the owner or developer of an eligible project
that is not subject to the Energy Commission’s certification
requirements to support the permitting of eligible projects pursuant
to this chapter:

(1) Twenty-five thousand dollars ($25,000) for projects,
regardless of size, that are subject only to Section 2080.1.

(2) Twenty-five thousand dollars ($25,000) for projects that are
less than 50 megawatts.

(3) Fifty thousand dollars ($50,000) for projects that are not
less than 50 megawatts and not more than 250 megawatts.

(4) Seventy-five thousand dollars ($75,000) for projects that
are more than 250 megawatts.

(c) (1) For applications submitted to the department on or after
the effective date of this act, the department shall collect the permit
application fee at the time the owner or developer submits its
permit application. For applications submitted after June 30, 2011,
but before the effective date of the act, the department shall collect
the permit application fee upon the effective date of the act and
shall not deem the application complete until it has collected the
permit application fee. Permit applications submitted prior to June
30, 2011, or deemed complete prior to the effective date of the act
shall not be subject to fees established pursuant to this section.

(2) If an owner or developer withdraws a project within 30 days
after paying the permit application fee, the department shall refund
any unused portion of the fee to the owner or developer.

(3) The department shall utilize the permit application fee only
to pay for all or a portion of the department’s cost of processing
incidental take permit applications pursuant to subdivision (b) of
Section 2081 and Section 2080.1 and of the department’s cost of
complying with the requirements of subdivision (f).

(d) (1) If the permit application fee paid pursuant to subdivision
(b) is determined by the department to be insufficient to complete
permitting work due to the complexity of a project, the department
shall collect an additional fee from the owner or developer to pay
for its estimated costs. Upon its determination, the department
shall notify the applicant of the reasons why an additional fee is
necessary and the estimated amount of the additional fee.

(2) The additional fee shall not exceed an amount that, when
added to the fee paid pursuant to subdivision (b), equals two
hundred thousand dollars ($200,000). The department shall collect
the additional fee before a final decision on the application by the
department.

(e) (1) It is the intent of the Legislature that the department
participate in the Energy Commission’s site certification process
for eligible projects as the state’s trustee for natural resources.

(2) The department and the Energy Commission shall enter into
a cost-sharing agreement governing all eligible projects that are
subject to the Energy Commission’s certification requirements.
The agreement shall ensure that all or a portion of the department’s
costs of participating in the Energy Commission’s site certification
process for eligible projects for the purpose of advising the Energy
Commission with regard to the Energy Commission’s issuance of
incidental take authorization, pursuant to Section 2080.1 and
subdivision (b) of Section 2081, shall be paid to the department
by the Energy Commission from the fees received by the Energy
Commission pursuant to Section 25806 of the Public Resources
Code.

(3) Funds identified by the Energy Commission for transfer to
the department pursuant to the cost-sharing agreement required in
paragraph (2) are exempt from the requirements of subdivision (d)
of Section 25806 of the Public Resources Code.

(f) (1) In order to meet the intent of the Legislature pursuant
to paragraph (1) of subdivision (a), the department shall carry out
both of the following:

(A) By January 1, 2012, and every six months thereafter, until
January 1, 2014, the department shall submit a report to the
Legislature that provides information related to the department’s
fee collections, expenditures, and workload pursuant to this section,
including, as feasible, the information required in paragraph (1)
of subdivision (e) of Section 2099.20.

(B) By January 1, 2013, and annually thereafter, the department
shall review the permit application fees paid pursuant to
subdivisions (b) and (d) and shall recommend adjustments to the
Legislature in an amount necessary to pay the full costs of
processing the project’s incidental take permit.

(2) It is the intent of the Legislature that the Joint Legislative
Audit Committee shall, during the 2014 calendar year, determine
whether to approve an audit of the department’s activities pursuant
to this section. In making its determination, the committee shall
consider information submitted by the department to the Legislature
pursuant to this section and Section 2099.20.

(g) The fees paid to the department pursuant to this section shall
be deposited in the Renewable Resources Permitting Account,
which is hereby established in the Fish and Game Preservation
Fund, and shall be eligible for expenditure by the department
pursuant to subdivision (b) of Section 2081 and Section 2080.1.

(h) For purposes of this section, the Legislature hereby
appropriates six million dollars ($6,000,000) from the Fish and
Game Preservation Fund.

(i) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 3.  

Section 4103.5 is added to the Food and Agricultural
Code, to read:

4103.5.  

(a) (1) The California Science Center may enter into
one or more agreements or leases with the California Science
Center Foundation, a California nonprofit public benefit
corporation, with the approval of the Natural Resources Agency,
the Department of Finance, and the Department of General
Services, for the purpose of developing, designing, constructing,
equipping, furnishing, operating, and funding the project known
as the Phase III Project of the California Science Center, which is
located adjacent to or contiguous with the existing Phase I Project
and Phase II Project of the California Science Center in Exposition
Park.

(2) Before entering into any agreement or lease with the
California Science Center Foundation relating to the Phase III
Project, the California Science Center shall have approval for the
Phase III Project from the Natural Resources Agency and the
Department of Finance.

(3) All agreements or leases entered into between the California
Science Center and the California Science Center Foundation
relating to the Phase III Project shall be on terms compatible with
the financing arrangements that exist on the Phase I Project and
Phase II Project. The entire design and construction cost of the
Phase III Project shall be the sole responsibility of the California
Science Center Foundation. Any agreement or lease entered into
between the California Science Center and the California Science
Center Foundation relating to the Phase III Project shall not contain
terms, either directly or indirectly, that obligate the California
Science Center, Exposition Park, or the state to pay or repay any
debt issuance or other financing that may be associated with the
Phase III Project.

(4) The agreements or leases entered into between the California
Science Center and the California Science Center Foundation
relating to the Phase III Project may have a term of up to 50 years.
The California Science Center Foundation shall agree not to enter
into any third-party donation, grant, or funding arrangement that
limits or restricts the use or purpose of the Phase III Project beyond
the agreement or lease duration as authorized in this section.

(5) All agreements or leases entered into between the California
Science Center and the California Science Center Foundation
relating to the Phase III Project shall contain a provision that the
California Science Center Foundation agrees to indemnify, defend,
and save harmless the state from any and all claims and losses
arising out of the design and construction of the Phase III Project
to the same extent the state is customarily indemnified by its
architects, engineers, and contractors in connection with state
infrastructure projects of similar type and scope.

(6) The scope of the Phase III Project shall be consistent with
the Exposition Park Master Plan and may include the demolition
of existing administration buildings and other ancillary state
facilities. The Phase III Project shall be developed in a manner
that is consistent with the state’s climate change goals and the
Green Building Action Plan, and complies with the requirements
of Executive Order No. B-18-12, including, but not limited to,
meeting the LEED Silver and other requirements for new or major
renovated state buildings.

(b) For the purpose of carrying out subdivision (a), all of the
following shall apply:

(1) All contracts in connection with the design, construction,
and installation of the Phase III Project shall be contracts entered
into by the California Science Center Foundation, and
notwithstanding any other law, shall not be subject to state
procurement law or law pertaining to state contracts.

(2) The California Science Center Foundation shall, and shall
cause its contractors to, coordinate construction activity associated
with the Phase III Facilities with the Exposition Park Manager and
shall ensure the construction activity is carried out in a manner
that complies with all existing leases and other commitments of
the state with respect to Exposition Park and limits the impact on
the tenants in and visitors to Exposition Park. Significant aspects
of construction activity such as staging, parking, and security shall
be subject to the prior review and approval of the Exposition Park
Manager. Any agreements or leases between the California Science
Center and the California Science Center Foundation relating to
the Phase III Project shall obligate the California Science Center
Foundation to reimburse the state for any lost revenue of the state
while the Phase III Project is under construction to the extent
resulting from the lost use of any area of Exposition Park other
than the area approved to be occupied by the Phase III Facilities
pursuant to the schematic design approved by the board of directors
of the California Science Center on July 23, 2014, as may be
revised from time to time by agreement between the parties thereto
and with the approval of the Natural Resources Agency and the
Department of Finance. Prior to the commencement of any
construction of the Phase III Facilities, including, but not limited
to, any related demolition of existing structures, the California
Science Center Foundation and the Exposition Park Manager shall
meet and confer in order to develop a construction schedule that
shall not interfere with any previously scheduled events on the
Exposition Park property. After the development of that
construction schedule, the Exposition Park Manager shall
coordinate any future event scheduling that could affect the
construction of the Phase III Facilities with the California Science
Center Foundation and its construction schedule. Any agreements
or leases between the California Science Center and the California
Science Center Foundation relating to the Phase III Project shall
obligate the California Science Center Foundation to coordinate
its construction schedule with the Exposition Park Manager with
respect to special events planned on Exposition Park property.
Any agreements or leases between the California Science Center
and the California Science Center Foundation relating to the Phase
III Project shall also obligate the California Science Center
Foundation to indemnify, defend, and save harmless the state from
any and all claims and losses resulting from any failure of the
California Science Center Foundation to adhere to its construction
schedule, as that schedule may be revised from time to time in
consultation with the Exposition Park Manager, or to coordinate
its construction schedule with the Exposition Park Manager with
respect to special events planned on Exposition Park property,
except, in each case, to the extent resulting from the failure of the
Exposition Park Manager to coordinate any events planned in
Exposition Park that could affect the construction with the
California Science Center Foundation and its construction schedule.

(3) The California Science Center Foundation shall ensure the
Phase III Facilities are inspected during construction by the state
in a manner consistent with state infrastructure projects. Prior to
commencement of construction, the California Science Center
Foundation and the California Science Center, upon consultation
with the Department of General Services, the Natural Resources
Agency, and the Department of Finance, shall agree on a reasonable
level of state oversight throughout the construction of the Phase
III Facilities to ensure the approved project scope is maintained,
that initial estimates regarding long-term operation and
maintenance obligations remain accurate, and that all project
requirements are met.

(4) Any agreements or leases between the California Science
Center and the California Science Center Foundation relating to
the Phase III Project shall provide that, upon completion and
certification that the Phase III Facilities are available for use and
occupancy, the ownership and operation of the Phase III Facilities
shall be under the control of the California Science Center with
respect to the building and any museum-related structures and
Exposition Park with respect to the other structures and the adjacent
plazas and landscaping.

(5) Notwithstanding any other law, including, but not limited
to, Section 11007 of the Government Code, the California Science
Center may consult with the Department of General Services for
the procurement of property insurance, including fire, lightning,
and extended coverage insurance, on the Phase III Facilities, subject
to reasonable deductibles, provided the insurance is available on
the open market from reputable insurance companies at a
reasonable cost.

(c) For purposes of this section, the following terms have the
following meanings:

(1) “Phase III Facilities” shall mean all buildings, structures,
and plazas and landscaping adjacent to those buildings and
structures constructed by the California Science Center Foundation
as part of the Phase III Project of the California Science Center.
“Phase III Facilities” shall not include exhibit elements and artifacts
and the temporary space shuttle display pavilion.

(2) “Phase III Project” shall mean the development, design,
construction, equipping, furnishing, operation, and funding of the
Phase III Facilities, as well as all exhibit elements.

SEC. 4.  

Section 6103.4 of the Government Code is amended
to read:

6103.4.  

Section 6103 does not apply to any fee or charge for
official services required by any of the following:

(a) The Environmental Laboratory Accreditation Act (Article
3 (commencing with Section 100825) of Chapter 4 of Part 1 of
Division 101 of the Health and Safety Code).

(b) Article 3 (commencing with Section 106875) of Chapter 4
of Part 1 of Division 104 of the Health and Safety Code.

(c) The California Safe Drinking Water Act (Chapter 4
(commencing with Section 116270) of Part 12 of Division 104 of
the Health and Safety Code).

(d) The Safe Drinking Water State Revolving Fund Law of 1997
(Chapter 4.5 (commencing with Section 116760) of Part 12 of
Division 104 of the Health and Safety Code).

(e) Article 2 (commencing with Section 116800) and Article 3
(commencing with Section 116825) of Chapter 5 of Part 12 of
Division 104 of the Health and Safety Code.

(f) Part 5 (commencing with Section 4999) of Division 2 of,
and Division 7 (commencing with Section 13000) of, the Water
Code.

SEC. 5.  

Section 99523 of the Government Code is amended
to read:

99523.  

The council shall do all of the following:

(a) Coordinate activities of state agencies that are related to
cross-border programs, initiatives, projects, and partnerships that
exist within state government, to improve the effectiveness of state
and local efforts that are of concern between California and
Mexico.

(b) Establish policies to coordinate the collection and sharing
of data related to cross-border issues between and among agencies.

(c) Establish the Border Region Solid Waste Working Group
to develop and coordinate long-term solutions to address and
remediate problems associated with waste tires, solid waste, and
excessive sedimentation along the border that result in degraded
valuable estuarine and riparian habitats, and threaten water quality
and public health in California.

(d) Identify and recommend to the Legislature changes in law
needed to achieve the goals of this section.

SEC. 6.  

Section 8012 of the Health and Safety Code is amended
to read:

8012.  

As used in this chapter, terms shall have the same
meaning as in the federal Native American Graves Protection and
Repatriation Act (25 U.S.C. Sec. 3001 et seq.), as interpreted by
federal regulations, except that the following terms shall have the
following meaning:

(a)  “Agency” means a division, department, bureau,
commission, board, council, city, county, city and county, district,
or other political subdivision of the state, but does not include a
school district.

(b)  “Burial site” means, except for cemeteries and graveyards
protected under existing state law, a natural or prepared physical
location, whether originally below, on, or above the surface of the
earth, into which human remains were intentionally deposited as
a part of the death rites or ceremonies of a culture.

(c)  “Commission” means the Native American Heritage
Commission, established pursuant to Section 5097.91 of the Public
Resources Code.

(d)  “Cultural items” shall have the same meaning as defined
by Section 3001 of Title 25 of the United States Code, except that
it shall mean only those items that originated in California.

(e)  “Control” means having ownership of human remains and
cultural items sufficient to lawfully permit a museum or agency
to treat the object as part of its collection for purposes of this
chapter, whether or not the human remains and cultural items are
in the physical custody of the museum or agency. Items on loan
to a museum or agency from another person, museum, or agency
shall be deemed to be in the control of the lender, and not the
borrowing museum or agency.

(f)  “State cultural affiliation” means that there is a relationship
of shared group identity that can reasonably be traced historically
or prehistorically between members of a present-day California
Indian Tribe, as defined in subdivision (j), and an identifiable
earlier tribe or group. Cultural affiliation is established when the
preponderance of the evidence, based on geography, kinship,
biology, archaeology, linguistics, folklore, oral tradition, historical
evidence, or other information or expert opinion, reasonably leads
to such a conclusion.

(g)  “Inventory” means an itemized list that summarizes the
collection of human remains and associated funerary objects in
the possession or control of an agency or museum. This itemized
list may be the inventory list required under the federal Native
American Graves Protection and Repatriation Act (25 U.S.C. Sec.
3001 et seq.).

(h)  “Summary” means a document that summarizes the
collection of unassociated funerary objects, sacred objects, or
objects of cultural patrimony in the possession or control of an
agency or museum. This document may be the summary prepared
under the federal Native American Graves Protection and
Repatriation Act (25 U.S.C. Sec. 3001 et seq.).

(i)  “Museum” means an entity, including a higher educational
institution, excluding school districts, that receives state funds.

(j)  “California Indian tribe” means any tribe located in
California to which any of the following applies:

(1)  It meets the definition of Indian tribe under the federal
Native American Graves Protection and Repatriation Act (25
U.S.C. Sec. 3001 et seq.).

(2)  It is not recognized by the federal government, but is
indigenous to the territory that is now known as the State of
California, and both of the following apply:

(A)  It is listed in the Bureau of Indian Affairs Branch of
Acknowledgement and Research petitioner list pursuant to Section
82.1 of Title 25 of the Federal Code of Regulations.

(B)  It is determined by the commission to be a tribe that is
eligible to participate in the repatriation process set forth in this
chapter. The commission shall publish a document that lists the
California tribes meeting these criteria, as well as authorized
representatives to act on behalf of the tribe in the consultations
required under paragraph (3) of subdivision (a) of Section 8013
and in matters pertaining to repatriation under this chapter. Criteria
that shall guide the commission in making the determination of
eligibility shall include, but not be limited to, the following:

(i)  A continuous identity as an autonomous and separate tribal
government.

(ii)  Holding itself out as a tribe.

(iii)  The tribe as a whole has demonstrated aboriginal ties to
the territory now known as the State of California and its members
can demonstrate lineal descent from the identifiable earlier groups
that inhabited a particular tribal territory.

(iv)  Recognition by the Indian community and non-Indian
entities as a tribe.

(v)  Demonstrated membership criteria.

(k)  “Possession” means having physical custody of human
remains and cultural items with a sufficient legal interest to
lawfully treat the human remains and cultural items as part of a
collection. The term does not include human remains and cultural
items on loan to an agency or museum.

( l)  “Preponderance of the evidence” means that the party’s
evidence on a fact indicates that it is more likely than not that the
fact is true.

SEC. 7.  

Section 8016 of the Health and Safety Code is amended
to read:

8016.  

(a) If there is more than one request for repatriation for
the same item, or there is a dispute between the requesting party
and the agency or museum, or if a dispute arises in relation to the
repatriation process, the commission shall notify the affected
parties of this fact and the cultural affiliation of the item in question
shall be determined in accordance with this section.

(b) An agency or museum receiving a repatriation request
pursuant to subdivision (a) shall repatriate human remains and
cultural items if all of the following criteria have been met:

(1) The requested human remains or cultural items meet the
definitions of human remains or cultural items that are subject to
inventory requirements under subdivision (a) of Section 8013.

(2) The state cultural affiliation of the human remains or cultural
items is established as required under subdivision (f) of Section
8012.

(3) The agency or museum is unable to present evidence that,
if standing alone before the introduction of evidence to the
contrary, would support a finding that the agency or museum has
a right of possession to the requested cultural items.

(4) None of the exemptions listed in Section 10.10(c) of Title
43 of the Federal Code of Regulations apply.

(5) All other applicable requirements of regulations adopted
under the federal Native American Graves Protection and
Repatriation Act (25 U.S.C. Sec. 3001 et seq.), contained in Part
10 of Title 43 of the Code of Federal Regulations, have been met.

(c) Within 30 days after notice has been provided by the
commission, the museum or agency shall have the right to file with
the commission any objection to the requested repatriation, based
on its good faith belief that the requested human remains or cultural
items are not culturally affiliated with the requesting California
tribe or are not subject to repatriation under this chapter.

(d) The disputing parties shall submit documentation describing
the nature of the dispute, in accordance with standard mediation
practices and the commission’s procedures, to the commission,
which shall, in turn, forward the documentation to the opposing
party or parties. The disputing parties shall meet within 30 days
of the date of the mailing of the documentation with the goal of
settling the dispute.

(e) If, after meeting pursuant to subdivision (d), the parties are
unable to settle the dispute, the commission, or a certified mediator
designated by the commission in accordance with paragraph (2)
of subdivision (n) of Section 5097.94 of the Public Resources
Code, shall mediate the dispute.

(f) Each disputing party shall submit complaints and supporting
evidence to the commission or designated mediator and the other
opposing parties detailing their positions on the disputed issues in
accordance with standard mediation practices and the commission’s
mediation procedures. Each party shall have 20 days from the date
the complaint and supporting evidence were mailed to respond to
the complaints. All responses shall be submitted to the opposing
party or parties and the commission or designated mediator.

(g) The commission or designated mediator shall review all
complaints, responses, and supporting evidence submitted. Within
20 days after the date of submission of responses, the commission
or designated mediator shall hold a mediation session and render
a decision within seven days of the date of the mediation session.

(h) When the disposition of any items are disputed, the party in
possession of the items shall retain possession until the mediation
process is completed. No transfer of items shall occur until the
dispute is resolved.

(i) Tribal oral histories, documentation, and testimonies shall
not be afforded less evidentiary weight than other relevant
categories of evidence on account of being in those categories.

(j) If the parties are unable to resolve a dispute through
mediation, the dispute shall be resolved by the commission. The
determination of the commission shall be deemed to constitute a
final administrative remedy. Any party to the dispute seeking a
review of the determination of the commission is entitled to file
an action in the superior court seeking an independent judgment
on the record as to whether the commission’s decision is supported
by a preponderance of the evidence. The independent review shall
not constitute a de novo review of a decision by the commission,
but shall be limited to a review of the evidence on the record.
Petitions for review shall be filed with the court not later than 30
days after the final decision of the commission.

SEC. 8.  

Article 3 (commencing with Section 8025) of Chapter
5 of Part 2 of Division 7 of the Health and Safety Code is repealed.

SEC. 9.  

Section 12723 of the Health and Safety Code is
amended to read:

12723.  

(a) The authority seizing any fireworks under the
provisions of this chapter shall notify the State Fire Marshal not
more than three days following the date of seizure and shall state
the reason for the seizure and the quantity, type, and location of
the fireworks. Any fireworks, with the exception of dangerous
fireworks, seized pursuant to Section 12721 shall be managed by
the State Fire Marshal at any time subsequent to 60 days from the
seizure or 10 days from the final termination of proceedings under
the provisions of Section 12593 or 12724, whichever is later.
Dangerous fireworks shall be managed according to procedures
in Sections 12724 and 12726. Any fireworks seized by any
authority as defined in this chapter, other than the State Fire
Marshal or his or her salaried assistants, shall be held in trust for
the State Fire Marshal by that authority.

(b) The State Fire Marshall shall contract with a federally
permitted hazardous waste hauler for the hauling and disposal of
seized illegal and dangerous fireworks. Fireworks determined not
to be hazardous waste by a hazardous devices technician, explosive
ordnance technician, or a state arson and bomb investigator shall
be stored in a warehouse currently used for fireworks storage.

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 10.  

Section 12723 is added to the Health and Safety Code,
to read:

12723.  

(a) The authority seizing fireworks under the provisions
of this chapter shall notify the State Fire Marshal not more than
three days following the date of seizure and shall state the reason
for the seizure and the quantity, type, and location of the fireworks.
Fireworks, with the exception of dangerous fireworks, seized
pursuant to Section 12721 shall be disposed of by the State Fire
Marshal in the manner prescribed by the State Fire Marshal at any
time subsequent to 60 days from the seizure or 10 days from the
final termination of proceedings under the provisions of Section
12593 or 12724, whichever is later. Dangerous fireworks shall be
disposed of according to procedures in Sections 12724 and 12726.
Fireworks seized by any authority as defined in this chapter, other
than the State Fire Marshal or his or her salaried assistants, shall
be held in trust for the State Fire Marshal by that authority.

(b) This section shall become operative on January 1, 2016.

SEC. 11.  

Section 12726 of the Health and Safety Code is
amended to read:

12726.  

(a) The dangerous fireworks seized pursuant to this
part shall be managed by the State Fire Marshal at any time after
the final determination of proceedings under Section 12724, or
upon final termination of proceedings under Section 12593,
whichever is later.

(b) If dangerous fireworks are seized pursuant to a local
ordinance that provides for administrative fines or penalties and
these fines or penalties are collected, the local government entity
collecting the fines or penalties shall forward 65 percent of the
collected moneys to the Controller for deposit in the State Fire
Marshal Fireworks Enforcement and Disposal Fund, as described
in Section 12728.

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

SEC. 12.  

Section 12726 is added to the Health and Safety Code,
to read:

12726.  

(a) The dangerous fireworks seized pursuant to this
part shall be disposed of by the State Fire Marshal in the manner
prescribed by the State Fire Marshal at any time after the final
determination of proceedings under Section 12724, or upon final
termination of proceedings under Section 12593, whichever is
later. If no proceedings are commenced pursuant to Section 12724,
the State Fire Marshal may dispose of the fireworks after all of the
following requirements are satisfied:

(1) A random sampling of the dangerous fireworks has been
taken, as defined by regulations adopted by the State Fire Marshal
pursuant to Section 12552.

(2) The analysis of the random sampling has been completed.

(3) Photographs have been taken of the dangerous fireworks to
be destroyed.

(4) The State Fire Marshal has given written approval for the
destruction of the dangerous fireworks. This approval shall specify
the total weight of the dangerous fireworks seized, the total weight
of the dangerous fireworks to be destroyed, and the total weight
of the dangerous fireworks not to be destroyed.

(b) To carry out the purposes of this section, the State Fire
Marshal shall acquire and use statewide mobile dangerous
fireworks destruction units to collect and destroy seized dangerous
fireworks from local and state agencies.

(c) If dangerous fireworks are seized pursuant to a local
ordinance that provides for administrative fines or penalties and
these fines or penalties are collected, the local government entity
collecting the fines or penalties shall forward 65 percent of the
collected moneys to the Controller for deposit in the State Fire
Marshal Fireworks Enforcement and Disposal Fund, as described
in Section 12728.

(d) This section shall become operative on January 1, 2016.

SEC. 13.  

Section 25173.6 of the Health and Safety Code is
amended to read:

25173.6.  

(a) There is in the General Fund the Toxic Substances
Control Account, which shall be administered by the director. In
addition to any other money that may be appropriated by the
Legislature to the Toxic Substances Control Account, all of the
following shall be deposited in the account:

(1) The fees collected pursuant to Section 25205.6.

(2) The fees collected pursuant to Section 25187.2, to the extent
that those fees are for oversight of a removal or remedial action
taken under Chapter 6.8 (commencing with Section 25300) or
Chapter 6.86 (commencing with Section 25396).

(3) Fines or penalties collected pursuant to this chapter, Chapter
6.8 (commencing with Section 25300) or Chapter 6.86
(commencing with Section 25396), except as directed otherwise
by Section 25192.

(4) Interest earned upon money deposited in the Toxic
Substances Control Account.

(5) All money recovered pursuant to Section 25360, except any
amount recovered on or before June 30, 2006, that was paid from
the Hazardous Substance Cleanup Fund.

(6) All money recovered pursuant to Section 25380.

(7) All penalties recovered pursuant to Section 25214.3, except
as provided by Section 25192.

(8) All penalties recovered pursuant to Section 25214.22.1,
except as provided by Section 25192.

(9) All penalties recovered pursuant to Section 25215.7, except
as provided by Section 25192.

(10) Reimbursements for funds expended from the Toxic
Substances Control Account for services provided by the
department, including, but not limited to, reimbursements required
pursuant to Sections 25201.9 and 25343.

(11) Money received from the federal government pursuant to
the federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.C.
Sec. 9601 et seq.).

(12) Money received from responsible parties for remedial
action or removal at a specific site, except as otherwise provided
by law.

(b) The funds deposited in the Toxic Substances Control
Account may be appropriated to the department for the following
purposes:

(1) The administration and implementation of the following:

(A) Chapter 6.8 (commencing with Section 25300), except that
funds shall not be expended from the Toxic Substances Control
Account for purposes of Section 25354.5.

(B) Chapter 6.86 (commencing with Section 25396).

(C) Article 10 (commencing with Section 7710) of Chapter 1
of Division 4 of the Public Utilities Code, to the extent the
department has been delegated responsibilities by the secretary
for implementing that article.

(D) Activities of the department related to pollution prevention
and technology development, authorized pursuant to this chapter.

(2) The administration of the following units, and successor
organizations of those units, within the department, and the
implementation of programs administered by those units or
successor organizations:

(A) The Human and Ecological Risk Division.

(B) The Environmental Chemistry Laboratory.

(C) The Office of Pollution Prevention and Technology
Development.

(3) For allocation to the Office of Environmental Health Hazard
Assessment, pursuant to an interagency agreement, to assist the
department as needed in administering the programs described in
subparagraphs (A) and (B) of paragraph (1).

(4) For allocation to the State Board of Equalization to pay
refunds of fees collected pursuant to Section 43054 of the Revenue
and Taxation Code.

(5) For the state share mandated pursuant to paragraph (3) of
subsection (c) of Section 104 of the federal Comprehensive
Environmental Response, Compensation, and Liability Act of
1980, as amended (42 U.S.C. Sec. 9604(c)(3)).

(6) For the purchase by the state, or by a local agency with the
prior approval of the director, of hazardous substance response
equipment and other preparations for response to a release of
hazardous substances. However, all equipment shall be purchased
in a cost-effective manner after consideration of the adequacy of
existing equipment owned by the state or the local agency, and the
availability of equipment owned by private contractors.

(7) For payment of all costs of removal and remedial action
incurred by the state, or by a local agency with the approval of the
director, in response to a release or threatened release of a
hazardous substance, to the extent the costs are not reimbursed by
the federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.C.
Sec. 9601 et seq.).

(8) For payment of all costs of actions taken pursuant to
subdivision (b) of Section 25358.3, to the extent that these costs
are not paid by the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended
(42 U.S.C. Sec. 9601 et seq.).

(9) For all costs incurred by the department in cooperation with
the Agency for Toxic Substances and Disease Registry established
pursuant to subsection (i) of Section 104 of the federal
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(i)) and
all costs of health effects studies undertaken regarding specific
sites or specific substances at specific sites. Funds appropriated
for this purpose shall not exceed five hundred thousand dollars
($500,000) in a single fiscal year. However, these actions shall not
duplicate reasonably available federal actions and studies.

(10) For repayment of the principal of, and interest on, bonds
sold pursuant to Article 7.5 (commencing with Section 25385) of
Chapter 6.8.

(11) Direct site remediation costs.

(12) For the department’s expenses for staff to perform oversight
of investigations, characterizations, removals, remediations, or
long-term operation and maintenance.

(13) For the administration and collection of the fees imposed
pursuant to Section 25205.6.

(14) For allocation to the office of the Attorney General,
pursuant to an interagency agreement or similar mechanism, for
the support of the Toxic Substance Enforcement Program in the
office of the Attorney General, in carrying out the purposes of
Chapter 6.8 (commencing with Section 25300) and Chapter 6.86
(commencing with Section 25396).

(15) For funding the California Environmental Contaminant
Biomonitoring Program established pursuant to Chapter 8
(commencing with Section 105440) of Part 5 of Division 103.

(16) As provided in Sections 25214.3 and 25215.7 and, with
regard to penalties recovered pursuant to Section 25214.22.1, to
implement and enforce Article 10.4 (commencing with Section
25214.11).

(17) (A) Commencing July 1, 2015, for the administration and
implementation of this chapter as it applies to metal recycling
facilities, which includes, but is not limited to, the following:

(i) Conducting inspections and investigations of metal recycling
facilities.

(ii) Pursuing administrative, civil, or criminal enforcement
actions, or some combination of those actions, against metal
recycling facilities.

(iii) Developing interim industry operating standards to use in
enforcement actions, in part by collecting and analyzing data to
identify the various types, locations, types and scale of activities,
and regulatory histories of metal recycling facilities.

(iv) Conducting outreach efforts with the metal recycling facility
industry and the communities surrounding metal recycling
facilities.

(v) Developing and adopting industry-specific regulations.

(vi) Collecting samples at or within the vicinity of metal
recycling facilities and analyzing those samples.

(B) (i) For purposes of this section only, “metal recycling
facility” includes any facility receiving and handling discarded
manufactured metal objects and other metal-containing wastes for
the purpose of extracting the ferrous and nonferrous constituents
or for the purpose of processing discarded manufactured metal
objects and other metal-containing wastes in preparation for
extracting the ferrous and nonferrous constituents.

(ii) For purposes of this section only, “metal recycling facility”
does not include a metal shredding facility that has been issued a
nonhazardous waste determination by the department pursuant to
subdivision (f) of Section 66260.200 of Article 3 of Chapter 10 of
Division 4.5 of Title 22 of the California Code of Regulations and
is continuing to operate under the terms and conditions of that
determination.

(C) This paragraph shall remain operative only until June 30,
2018.

(18) (A) Commencing July 1, 2015, for review of the
department’s enforcement of this chapter and the regulations
implementing this chapter. This review shall include an assessment
of the enforcement program, including, but not limited to, the
following:

(i) Evaluation of workload and processes for hazardous waste
inspection, investigation, and enforcement activities.

(ii) Development, revision, and standardization of policies and
guidance documents for enforcement staff.

(iii) Evaluation of statutory and regulatory provisions governing
the enforcement program.

(B) This paragraph shall remain operative only until June 30,
2017.

(c) The funds deposited in the Toxic Substances Control
Account may be appropriated by the Legislature to the Office of
Environmental Health Hazard Assessment and the State
Department of Public Health for the purposes of carrying out their
duties pursuant to the California Environmental Contaminant
Biomonitoring Program (Chapter 8 (commencing with Section
105440) of Part 5 of Division 103).

(d) The director shall expend federal funds in the Toxic
Substances Control Account consistent with the requirements
specified in Section 114 of the federal Comprehensive
Environmental Response, Compensation, and Liability Act of
1980, as amended (42 U.S.C. Sec. 9614), upon appropriation by
the Legislature, for the purposes for which they were provided to
the state.

(e) Money in the Toxic Substances Control Account shall not
be expended to conduct removal or remedial actions if a significant
portion of the hazardous substances to be removed or remedied
originated from a source outside the state.

(f) The Director of Finance, upon request of the director, may
make a loan from the General Fund to the Toxic Substances
Control Account to meet cash needs. The loan shall be subject to
the repayment provisions of Section 16351 of the Government
Code and the interest provisions of Section 16314 of the
Government Code.

(g) The Toxic Substances Control Account established pursuant
to subdivision (a) is the successor fund of all of the following:

(1) The Hazardous Substance Account established pursuant to
Section 25330, as that section read on June 30, 2006.

(2) The Hazardous Substance Clearing Account established
pursuant to Section 25334, as that section read on June 30, 2006.

(3) The Hazardous Substance Cleanup Fund established pursuant
to Section 25385.3, as that section read on June 30, 2006.

(4) The Superfund Bond Trust Fund established pursuant to
Section 25385.8, as that section read on June 30, 2006.

(h) On and after July 1, 2006, all assets, liabilities, and surplus
of the accounts and funds listed in subdivision (g), shall be
transferred to, and become a part of, the Toxic Substances Control
Account, as provided by Section 16346 of the Government Code.
All existing appropriations from these accounts, to the extent
encumbered, shall continue to be available for the same purposes
and periods from the Toxic Substances Control Account.

(i) Notwithstanding Section 10231.5 of the Government Code,
the department, on or before February 1 of each year, shall report
to the Governor and the Legislature on the prior fiscal year’s
expenditure of funds within the Toxic Substances Control Account
for the purposes specified in subdivision (b).

SEC. 14.  

Section 44126 of the Health and Safety Code is
amended to read:

44126.  

The Enhanced Fleet Modernization Subaccount is
hereby created in the High Polluter Repair or Removal Account.
All moneys deposited in the subaccount shall be available, upon
appropriation by the Legislature, for both of the following:

(a) To the department and the bureau to establish and implement
the program created pursuant to this article.

(b) To the state board to implement and administer the program
created pursuant to this article.

SEC. 15.  

Section 57014 is added to the Health and Safety Code,
to read:

57014.  

(a) There is within the Department of Toxic Substances
Control an independent review panel, comprising three members,
to review and make recommendations regarding improvements to
the department’s permitting, enforcement, public outreach, and
fiscal management.

(b) The Speaker of the Assembly, the Senate Committee on
Rules, and the Governor shall each appoint one person to the panel.
One member of the panel shall be a community representative,
one member of the panel shall have scientific experience related
to toxic materials, and one member of the panel shall be a local
government management expert.

(1) The Speaker of the Assembly shall appoint the panelist with
scientific experience related to toxic materials.

(2) The Senate Committee on Rules shall appoint the panelist
who is a community representative.

(3) The Governor shall appoint the panelist who is a local
government management expert.

(4) The appointments shall be made within 90 days after the
effective date of the act adding this section.

(c) The panel may advise the department on issues related to
the department’s reporting obligations.

(d) The panel shall make recommendations for improving the
department’s programs.

(e) The panel shall advise the department on compliance with
Section 57007.

(f) The panel shall report to the Governor and the Legislature,
consistent with Section 9795 of the Government Code, 90 days
after the panel is initially appointed and every 90 days thereafter,
on the department’s progress in reducing permitting and
enforcement backlogs, improving public outreach, and improving
fiscal management.

(g) The department shall provide two support staff to the panel
independent of the department. Each member of the panel shall
receive per diem and shall be reimbursed for travel and other
necessary expenses incurred in the performance of his or her duties
under this section. The total amount of money expended for panel
expenses pursuant to this paragraph shall not exceed fifty thousand
dollars ($50,000) per year.

(h) At the time of the submission of the Governor’s 2016-17
annual budget to the Legislature, and at the time of each submission
of the Governor’s annual budget thereafter, the panel shall submit
to the Legislature and the Governor recommendations pursuant to
this section.

(i) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

SEC. 16.  

Section 57015 is added to the Health and Safety Code,
to read:

57015.  

There is in the department the assistant director for
environmental justice. The assistant director shall perform all of
the following duties, subject to the supervision of the director:

(a) Serve as ombudsperson and outreach coordinator for
disadvantaged communities, as described in Section 39711, where
hazardous materials and hazardous waste disposal facilities are
located.

(b) Provide information and assistance to communities on
permitting, enforcement, and other department activities in the
major languages spoken in those communities to ensure the
maximum feasible community participation in regulatory decisions
made by the department.

(c) Where community health or epidemiological information
has been collected by the department or other parties, make that
information available to communities, consistent with other
requirements of law, as soon as possible with plain explanations
as to their impacts.

SEC. 17.  

Section 116275 of the Health and Safety Code is
amended to read:

116275.  

As used in this chapter:

(a) “Contaminant” means any physical, chemical, biological,
or radiological substance or matter in water.

(b) “Department” means the state board.

(c) “Primary drinking water standards” means:

(1) Maximum levels of contaminants that, in the judgment of
the state board, may have an adverse effect on the health of persons.

(2) Specific treatment techniques adopted by the state board in
lieu of maximum contaminant levels pursuant to subdivision (j)
of Section 116365.

(3) The monitoring and reporting requirements as specified in
regulations adopted by the state board that pertain to maximum
contaminant levels.

(d) “Secondary drinking water standards” means standards that
specify maximum contaminant levels that, in the judgment of the
state board, are necessary to protect the public welfare. Secondary
drinking water standards may apply to any contaminant in drinking
water that may adversely affect the odor or appearance of the water
and may cause a substantial number of persons served by the public
water system to discontinue its use, or that may otherwise adversely
affect the public welfare. Regulations establishing secondary
drinking water standards may vary according to geographic and
other circumstances and may apply to any contaminant in drinking
water that adversely affects the taste, odor, or appearance of the
water when the standards are necessary to ensure a supply of pure,
wholesome, and potable water.

(e) “Human consumption” means the use of water for drinking,
bathing or showering, hand washing, oral hygiene, or cooking,
including, but not limited to, preparing food and washing dishes.

(f) “Maximum contaminant level” means the maximum
permissible level of a contaminant in water.

(g) “Person” means an individual, corporation, company,
association, partnership, limited liability company, municipality,
public utility, or other public body or institution.

(h) “Public water system” means a system for the provision of
water for human consumption through pipes or other constructed
conveyances that has 15 or more service connections or regularly
serves at least 25 individuals daily at least 60 days out of the year.
A public water system includes the following:

(1) Any collection, treatment, storage, and distribution facilities
under control of the operator of the system that are used primarily
in connection with the system.

(2) Any collection or pretreatment storage facilities not under
the control of the operator that are used primarily in connection
with the system.

(3) Any water system that treats water on behalf of one or more
public water systems for the purpose of rendering it safe for human
consumption.

(i) “Community water system” means a public water system
that serves at least 15 service connections used by yearlong
residents or regularly serves at least 25 yearlong residents of the
area served by the system.

(j) “Noncommunity water system” means a public water system
that is not a community water system.

(k) “Nontransient noncommunity water system” means a public
water system that is not a community water system and that
regularly serves at least 25 of the same persons over six months
per year.

(l) “Local health officer” means a local health officer appointed
pursuant to Section 101000 or a local comprehensive health agency
designated by the board of supervisors pursuant to Section 101275
to carry out the drinking water program.

(m) “Significant rise in the bacterial count of water” means a
rise in the bacterial count of water that the state board determines,
by regulation, represents an immediate danger to the health of
water users.

(n) “State small water system” means a system for the provision
of piped water to the public for human consumption that serves at
least five, but not more than 14, service connections and does not
regularly serve drinking water to more than an average of 25
individuals daily for more than 60 days out of the year.

(o) “Transient noncommunity water system” means a
noncommunity water system that does not regularly serve at least
25 of the same persons over six months per year.

(p) “User” means a person using water for domestic purposes.
User does not include a person processing, selling, or serving water
or operating a public water system.

(q) “Waterworks standards” means regulations adopted by the
state board that take cognizance of the latest available “Standards
of Minimum Requirements for Safe Practice in the Production and
Delivery of Water for Domestic Use” adopted by the California
section of the American Water Works Association.

(r) “Local primacy agency” means a local health officer that
has applied for and received primacy delegation pursuant to Section
116330.

(s) “Service connection” means the point of connection between
the customer’s piping or constructed conveyance, and the water
system’s meter, service pipe, or constructed conveyance. A
connection to a system that delivers water by a constructed
conveyance other than a pipe shall not be considered a connection
in determining if the system is a public water system if any of the
following apply:

(1) The water is used exclusively for purposes other than
residential uses, consisting of drinking, bathing, and cooking or
other similar uses.

(2) The state board determines that alternative water to achieve
the equivalent level of public health protection provided by the
applicable primary drinking water regulation is provided for
residential or similar uses for drinking and cooking.

(3) The state board determines that the water provided for
residential or similar uses for drinking, cooking, and bathing is
centrally treated or treated at the point of entry by the provider, a
passthrough entity, or the user to achieve the equivalent level of
protection provided by the applicable primary drinking water
regulations.

(t) “Resident” means a person who physically occupies, whether
by ownership, rental, lease, or other means, the same dwelling for
at least 60 days of the year.

(u) “Water treatment operator” means a person who has met
the requirements for a specific water treatment operator grade
pursuant to Section 106875.

(v) “Water treatment operator-in-training” means a person who
has applied for and passed the written examination given by the
state board but does not yet meet the experience requirements for
a specific water treatment operator grade pursuant to Section
106875.

(w) “Water distribution operator” means a person who has met
the requirements for a specific water distribution operator grade
pursuant to Section 106875.

(x) “Water treatment plant” means a group or assemblage of
structures, equipment, and processes that treats, blends, or
conditions the water supply of a public water system for the
purpose of meeting primary drinking water standards.

(y) “Water distribution system” means any combination of pipes,
tanks, pumps, and other physical features that deliver water from
the source or water treatment plant to the consumer.

(z) “Public health goal” means a goal established by the Office
of Environmental Health Hazard Assessment pursuant to
subdivision (c) of Section 116365.

(aa) “Small community water system” means a community
water system that serves no more than 3,300 service connections
or a yearlong population of no more than 10,000 persons.

(ab) “Disadvantaged community” means the entire service area
of a community water system, or a community therein, in which
the median household income is less than 80 percent of the
statewide average.

(ac) “State board” means the State Water Resources Control
Board.

SEC. 18.  

Section 116365 of the Health and Safety Code is
amended to read:

116365.  

(a) The state board shall adopt primary drinking water
standards for contaminants in drinking water that are based upon
the criteria set forth in subdivision (b) and shall not be less stringent
than the national primary drinking water standards adopted by the
United States Environmental Protection Agency. A primary
drinking water standard adopted by the state board shall be set at
a level that is as close as feasible to the corresponding public health
goal placing primary emphasis on the protection of public health,
and that, to the extent technologically and economically feasible,
meets all of the following:

(1) With respect to acutely toxic substances, avoids any known
or anticipated adverse effects on public health with an adequate
margin of safety.

(2) With respect to carcinogens, or any substances that may
cause chronic disease, avoids any significant risk to public health.

(b) The state board shall consider all of the following criteria
when it adopts a primary drinking water standard:

(1) The public health goal for the contaminant published by the
Office of Environmental Health Hazard Assessment pursuant to
subdivision (c).

(2) The national primary drinking water standard for the
contaminant, if any, adopted by the United States Environmental
Protection Agency.

(3) The technological and economic feasibility of compliance
with the proposed primary drinking water standard. For the
purposes of determining economic feasibility pursuant to this
paragraph, the state board shall consider the costs of compliance
to public water systems, customers, and other affected parties with
the proposed primary drinking water standard, including the cost
per customer and aggregate cost of compliance, using best available
technology.

(c) (1) The Office of Environmental Health Hazard Assessment
shall prepare and publish an assessment of the risks to public health
posed by each contaminant for which the state board proposes a
primary drinking water standard. The risk assessment shall be
prepared using the most current principles, practices, and methods
used by public health professionals who are experienced
practitioners in the fields of epidemiology, risk assessment, and
toxicology. The risk assessment shall contain an estimate of the
level of the contaminant in drinking water that is not anticipated
to cause or contribute to adverse health effects, or that does not
pose any significant risk to health. This level shall be known as
the public health goal for the contaminant. The public health goal
shall be based exclusively on public health considerations and
shall be set in accordance with all of the following:

(A) If the contaminant is an acutely toxic substance, the public
health goal shall be set at the level at which no known or
anticipated adverse effects on health occur, with an adequate
margin of safety.

(B) If the contaminant is a carcinogen or other substance that
may cause chronic disease, the public health goal shall be set at
the level that, based upon currently available data, does not pose
any significant risk to health.

(C) To the extent information is available, the public health goal
shall take into account each of the following factors:

(i) Synergistic effects resulting from exposure to, or interaction
between, the contaminant and one or more other substances or
contaminants.

(ii) Adverse health effects the contaminant has on members of
subgroups that comprise a meaningful portion of the general
population, including, but not limited to, infants, children, pregnant
women, the elderly, individuals with a history of serious illness,
or other subgroups that are identifiable as being at greater risk of
adverse health effects than the general population when exposed
to the contaminant in drinking water.

(iii) The relationship between exposure to the contaminant and
increased body burden and the degree to which increased body
burden levels alter physiological function or structure in a manner
that may significantly increase the risk of illness.

(iv) The additive effect of exposure to the contaminant in media
other than drinking water, including, but not limited to, exposures
to the contaminant in food, and in ambient and indoor air, and the
degree to which these exposures may contribute to the overall body
burden of the contaminant.

(D) If the Office of Environmental Health Hazard Assessment
finds that currently available scientific data are insufficient to
determine the level of a contaminant at which no known or
anticipated adverse effects on health will occur, with an adequate
margin of safety, or the level that poses no significant risk to public
health, the public health goal shall be set at a level that is protective
of public health, with an adequate margin of safety. This level
shall be based exclusively on health considerations and shall, to
the extent scientific data is available, take into account the factors
set forth in clauses (i) to (iv), inclusive, of subparagraph (C), and
shall be based on the most current principles, practices, and
methods used by public health professionals who are experienced
practitioners in the fields of epidemiology, risk assessment, and
toxicology. However, if adequate scientific evidence demonstrates
that a safe dose response threshold for a contaminant exists, then
the public health goal should be set at that threshold. The state
board may set the public health goal at zero if necessary to satisfy
the requirements of this subparagraph.

(2) The determination of the toxicological endpoints of a
contaminant and the publication of its public health goal in a risk
assessment prepared by the Office of Environmental Health Hazard
Assessment are not subject to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. The Office of Environmental Health
Hazard Assessment and the state board shall not impose any
mandate on a public water system that requires the public water
system to comply with a public health goal. The Legislature finds
and declares that the addition of this paragraph by Chapter 777 of
the Statutes of 1999 is declaratory of existing law.

(3) (A) The Office of Environmental Health Hazard Assessment
shall, at the time it commences preparation of a risk assessment
for a contaminant as required by this subdivision, electronically
post on its Internet Web site a notice that informs interested persons
that it has initiated work on the risk assessment. The notice shall
also include a brief description, or a bibliography, of the technical
documents or other information the office has identified to date
as relevant to the preparation of the risk assessment and inform
persons who wish to submit information concerning the
contaminant that is the subject of the risk assessment of the name
and address of the person in the office to whom the information
may be sent, the date by which the information shall be received
in order for the office to consider it in the preparation of the risk
assessment, and that all information submitted will be made
available to any member of the public who requests it.

(B) A draft risk assessment prepared by the Office of
Environmental Health Hazard Assessment pursuant to this
subdivision shall be made available to the public at least 45
calendar days before the date that public comment and discussion
on the risk assessment are solicited at the public workshop required
by Section 57003.

(C) At the time the Office of Environmental Health Hazard
Assessment publishes the final risk assessment for a contaminant,
the office shall respond in writing to significant comments, data,
studies, or other written information submitted by interested
persons to the office in connection with the preparation of the risk
assessment. These comments, data, studies, or other written
information submitted to the office shall be made available to any
member of the public who requests it.

(D) After the public workshop on the draft risk assessment, as
required by Section 57003, is completed, the Office of
Environmental Health Hazard Assessment shall submit the draft
risk assessment for external scientific peer review using the process
set forth in Section 57004 and shall comply with paragraph (2) of
subdivision (d) of Section 57004 before publication of the final
public health goal.

(d) Notwithstanding any other provision of this section, any
maximum contaminant level in effect on August 22, 1995, may
be amended by the state board to make the level more stringent
pursuant to this section. However, the state board may only amend
a maximum contaminant level to make it less stringent if the state
board shows clear and convincing evidence that the maximum
contaminant level should be made less stringent and the amendment
is made consistent with this section.

(e) (1) All public health goals published by the Office of
Environmental Health Hazard Assessment shall be established in
accordance with the requirements of subdivision (c) and shall be
reviewed at least once every five years and revised, pursuant to
subdivision (c), as necessary based upon the availability of new
scientific data.

(2) On or before January 1, 1998, the Office of Environmental
Health Hazard Assessment shall publish a public health goal for
at least 25 drinking water contaminants for which a primary
drinking water standard has been adopted by the state board. The
office shall publish a public health goal for 25 additional drinking
water contaminants by January 1, 1999, and for all remaining
drinking water contaminants for which a primary drinking water
standard has been adopted by the state board by no later than
December 31, 2001. A public health goal shall be published by
the Office of Environmental Health Hazard Assessment at the
same time the state board proposes the adoption of a primary
drinking water standard for any newly regulated contaminant.

(f) The state board or Office of Environmental Health Hazard
Assessment may review, and adopt by reference, any information
prepared by, or on behalf of, the United States Environmental
Protection Agency for the purpose of adopting a national primary
drinking water standard or maximum contaminant level goal when
it establishes a California maximum contaminant level or publishes
a public health goal.

(g) At least once every five years after adoption of a primary
drinking water standard, the state board shall review the primary
drinking water standard and shall, consistent with the criteria set
forth in subdivisions (a) and (b), amend any standard if any of the
following occur:

(1) Changes in technology or treatment techniques that permit
a materially greater protection of public health or attainment of
the public health goal.

(2) New scientific evidence that indicates that the substance
may present a materially different risk to public health than was
previously determined.

(h) No later than March 1 of every year, the state board shall
provide public notice of each primary drinking water standard it
proposes to review in that year pursuant to this section. Thereafter,
the state board shall solicit and consider public comment and hold
one or more public hearings regarding its proposal to either amend
or maintain an existing standard. With adequate public notice, the
state board may review additional contaminants not covered by
the March 1 notice.

(i) This section shall operate prospectively to govern the
adoption of new or revised primary drinking water standards and
does not require the repeal or readoption of primary drinking water
standards in effect immediately preceding January 1, 1997.

(j) The state board may, by regulation, require the use of a
specified treatment technique in lieu of establishing a maximum
contaminant level for a contaminant if the state board determines
that it is not economically or technologically feasible to ascertain
the level of the contaminant.

SEC. 19.  

Section 116565 of the Health and Safety Code is
amended to read:

116565.  

(a) Each public water system serving 1,000 or more
service connections, and any public water system that treats water
on behalf of one or more public water systems for the purpose of
rendering it safe for human consumption, shall reimburse the state
board for the actual cost incurred by the state board for conducting
those activities mandated by this chapter relating to the issuance
of domestic water supply permits, inspections, monitoring,
surveillance, and water quality evaluation that relate to that specific
public water system. The amount of reimbursement shall be
sufficient to pay, but in no event shall exceed, the state board’s
actual cost in conducting these activities.

(b) Each public water system serving fewer than 1,000 service
connections shall pay an annual drinking water operating fee to
the state board as set forth in this subdivision for costs incurred
by the state board for conducting those activities mandated by this
chapter relating to inspections, monitoring, surveillance, and water
quality evaluation relating to public water systems. The total
amount of fees shall be sufficient to pay, but in no event shall
exceed, the state board’s actual cost in conducting these activities.
Notwithstanding adjustment of actual fees collected pursuant to
Section 100425 as authorized pursuant to subdivision (d) of Section
116590, the amount that shall be paid annually by a public water
system pursuant to this section shall be as follows:

(1) Community water systems, six dollars ($6) per service
connection, but not less than two hundred fifty dollars ($250) per
water system, which may be increased by the state board, as
provided for in subdivision (f), to ten dollars ($10) per service
connection, but not less than two hundred fifty dollars ($250) per
water system.

(2) Nontransient noncommunity water systems pursuant to
subdivision (k) of Section 116275, two dollars ($2) per person
served, but not less than four hundred fifty-six dollars ($456) per
water system, which may be increased by the state board, as
provided for in subdivision (f), to three dollars ($3) per person
served, but not less than four hundred fifty-six dollars ($456) per
water system.

(3) Transient noncommunity water systems pursuant to
subdivision (o) of Section 116275, eight hundred dollars ($800)
per water system, which may be increased by the state board, as
provided for in subdivision (f), to one thousand three hundred
thirty-five dollars ($1,335) per water system.

(4) Noncommunity water systems in possession of a current
exemption pursuant to former Section 116282 on January 1, 2012,
one hundred two dollars ($102) per water system.

(c) For purposes of determining the fees provided for in
subdivision (a), the state board shall maintain a record of its actual
costs for pursuing the activities specified in subdivision (a) relative
to each system required to pay the fees. The fee charged each
system shall reflect the state board’s actual cost, or in the case of
a local primacy agency the local primacy agency’s actual cost, of
conducting the specified activities.

(d) The state board shall submit an invoice for cost
reimbursement for the activities specified in subdivision (a) to the
public water systems no more than twice a year.

(1) The state board shall submit one estimated cost invoice to
public water systems serving 1,000 or more service connections
and any public water system that treats water on behalf of one or
more public water systems for the purpose of rendering it safe for
human consumption. This invoice shall include the actual hours
expended during the first six months of the fiscal year. The hourly
cost rate used to determine the amount of the estimated cost invoice
shall be the rate for the previous fiscal year.

(2) The state board shall submit a final invoice to the public
water system before October 1 following the fiscal year that the
costs were incurred. The invoice shall indicate the total hours
expended during the fiscal year, the reasons for the expenditure,
the hourly cost rate of the state board for the fiscal year, the
estimated cost invoice, and payments received. The amount of the
final invoice shall be determined using the total hours expended
during the fiscal year and the actual hourly cost rate of the state
board for the fiscal year. The payment of the estimated invoice,
exclusive of late penalty, if any, shall be credited toward the final
invoice amount.

(3) Payment of the invoice issued pursuant to paragraphs (1)
and (2) shall be made within 90 days of the date of the invoice.
Failure to pay the amount of the invoice within 90 days shall result
in a 10-percent late penalty that shall be paid in addition to the
invoiced amount.

(e) Any public water system under the jurisdiction of a local
primacy agency shall pay the fees specified in this section to the
local primacy agency in lieu of the state board. This section shall
not preclude a local health officer from imposing additional fees
pursuant to Section 101325.

(f) The state board may increase the fees established in
subdivision (b) as follows:

(1) By February 1 of the fiscal year prior to the fiscal year for
which fees are proposed to be increased, the state board shall
publish a list of fees for the following fiscal year and a report
showing the calculation of the amount of the fees.

(2) The state board shall make the report and the list of fees
available to the public by submitting them to the Legislature and
posting them on the state board’s Internet Web site.

(3) The state board shall establish the amount of fee increases
subject to the approval and appropriation by the Legislature.

(g) This section shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 20.  

Section 116565 is added to the Health and Safety
Code, to read:

116565.  

(a) Each public water system shall submit an annual
fee according to a fee schedule established by the state board
pursuant to subdivision (c) for the purpose of reimbursing the state
board for the costs incurred by the state board for conducting
activities mandated by this chapter. The amount of reimbursement
shall be sufficient to pay, but in no event shall exceed, the state
board’s costs in conducting these activities, including a prudent
reserve in the Safe Drinking Water Account.

(b) Payment of the annual fee shall be due 90 calendar days
following the due date established in the schedule. Failure to pay
the annual fee within 90 calendar days shall result in a 10-percent
late penalty that shall be paid in addition to the fee.

(c) The state board shall adopt, by regulation, a schedule of fees,
as authorized by this section. The regulations may include
provisions concerning the administration and collection of the fees.

(d) The state board shall set the amount of total revenue
collected each year through the fee schedule at an amount equal
to the amount appropriated by the Legislature in the annual Budget
Act from the Safe Drinking Water Account for expenditure for the
administration of this chapter, taking into account the reserves in
the Safe Drinking Water Account. The state board shall review
and revise the fees each fiscal year as necessary to conform with
the amounts appropriated by the Legislature. If the state board
determines that the revenue collected during the preceding year
was greater than, or less than, the amounts appropriated by the
Legislature, the state board may further adjust the fees to
compensate for the over or under collection of revenue.

(e) (1) Except as provided in subparagraph (A) of paragraph
(2), the regulations adopted pursuant to this section, any
amendment thereto, or subsequent adjustments to the annual fees,
shall be adopted by the state board as emergency regulations in
accordance with Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code. The
adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for
the immediate preservation of the public peace, health, safety, and
general welfare.

(2) Notwithstanding Section 116377, both of the following shall
apply:

(A) The initial regulations adopted by the state board to
implement this section shall be adopted in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code, and may not rely on the statutory
declaration of emergency in paragraph (1) or Section 116377.

(B) Any emergency regulations adopted by the state board, or
adjustments to the annual fees made by the state board pursuant
to this section, shall not be subject to review by the Office of
Administrative Law and shall remain in effect until revised by the
state board.

(f) A public water system under the jurisdiction of a local
primacy agency shall pay the fees specified in this section to the
local primacy agency in lieu of the state board. This section does
not preclude a local health officer from imposing additional fees
pursuant to Section 101325.

(g) This section shall become operative on July 1, 2016.

SEC. 21.  

Section 116570 of the Health and Safety Code is
amended to read:

116570.  

(a)  Each public water system serving less than 1,000
service connections applying for a domestic water supply permit
pursuant to Section 116525 or 116550 shall pay a permit
application processing fee to the state board. Payment of the fee
shall accompany the application for the permit or permit
amendment.

(b)  The amount of the permit application fee required under
subdivision (a) shall be as follows:

(1)  A new community water system for which no domestic
water supply permits have been previously issued by the state
board shall pay an application fee of five hundred dollars ($500).

(2)  A new noncommunity water system for which no domestic
water supply permits have been previously issued by the state
board shall pay an application fee of three hundred dollars ($300).

(3)  An existing public water system applying for an amendment
to a domestic water supply permit due to a change in ownership
shall pay an application fee of one hundred fifty dollars ($150).

(4)  An existing public water system applying for an amendment
to a domestic water supply permit due to an addition or
modification of the source of supply, or an addition or change in
the method of treatment of the water supply shall pay an application
fee of two hundred fifty dollars ($250).

(c)  Any public water system under the jurisdiction of a local
primacy agency shall pay the permit application fees specified in
this section to the local primacy agency in lieu of the state board.

(d) This section shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 22.  

Section 116577 of the Health and Safety Code is
amended to read:

116577.  

(a)  Each public water system shall reimburse the
state board for actual costs incurred by the state board for any of
the following enforcement activities related to that water system:

(1)  Preparing, issuing, and monitoring compliance with, an
order or a citation.

(2)  Preparing and issuing public notification.

(3)  Conducting a hearing pursuant to Section 116625.

(b)  The state board shall submit an invoice for these
enforcement costs to the public water system that requires payment
before September 1 of the fiscal year following the fiscal year in
which the costs were incurred. The invoice shall indicate the total
hours expended, the reasons for the expenditure, and the hourly
cost rate of the state board. The costs set forth in the invoice shall
not exceed the total actual costs to the state board of enforcement
activities specified in this section.

(c)  Notwithstanding the reimbursement of enforcement costs
of the local primacy agency pursuant to subdivision (a) of Section
116595 by a public water system under the jurisdiction of the local
primacy agency, a public water system shall also reimburse
enforcement costs, if any, incurred by the state board pursuant to
this section.

(d)  “Enforcement costs,” as used in this section, does not
include “litigation costs” pursuant to Section 116585.

(e)  The state board shall not be entitled to enforcement costs
pursuant to this section if a court determines that enforcement
activities were in error.

(f) Payment of the invoice shall be made within 90 days of the
date of the invoice. Failure to pay the invoice within 90 days shall
result in a 10-percent late penalty that shall be paid in addition to
the invoiced amount.

(g) The state board may, at its sole discretion, waive payment
by a public water system of all or any part of the invoice or penalty.

SEC. 23.  

Section 116580 of the Health and Safety Code is
amended to read:

116580.  

(a)  Each public water system that requests an
exemption, plan review, variance, or waiver of any applicable
requirement of this chapter or any regulation adopted pursuant to
this chapter, shall reimburse the state board for actual costs incurred
by the state board in processing the request.

(b)  The state board shall submit an invoice to the water system
prior to October 1 of the fiscal year following the fiscal year in
which the state board’s decision was rendered with respect to the
request for a plan review, exemption, variance, or waiver. The
invoice shall indicate the number of hours expended by the state
board and the state board’s hourly cost rate. Payment of the fee
shall be made within 120 days of the date of the invoice. The state
board may revoke any approval of a request for an exemption,
variance, or waiver for failure to pay the required fees.

(c)  Notwithstanding subdivisions (a) and (b), requests for, and
reimbursement of actual costs for, an exemption, variance, or
waiver for public water systems under the jurisdiction of the local
primacy agency shall, instead, be submitted to the local primacy
agency pursuant to subdivision (c) of Section 116595.

(d) This section shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 24.  

Section 116585 of the Health and Safety Code is
amended to read:

116585.  

In a civil court action brought to enforce this chapter,
the prevailing party or parties shall be awarded litigation costs,
including, but not limited to, salaries, benefits, travel expenses,
operating equipment, administrative, overhead, other litigation
costs, and attorney’s fees, as determined by the court. Litigation
costs awarded to the state board by the court shall be deposited
into the Safe Drinking Water Account. Litigation costs awarded
to a local primacy agency by the court shall be used by that local
primacy agency to offset the local primacy agency’s litigation
costs.

SEC. 25.  

Section 116590 of the Health and Safety Code is
amended to read:

116590.  

(a)  Funds received by the state board pursuant to this
chapter shall be deposited into the Safe Drinking Water Account,
which is hereby established, and shall be available for use by the
state board, upon appropriation by the Legislature, for the purpose
of providing funds necessary to administer this chapter. Funds in
the Safe Drinking Water Account shall not be expended for any
purpose other than as set forth in this chapter.

(b)  The state board’s hourly cost rate used to determine the
reimbursement for actual costs pursuant to Sections 116565,
116577, and 116580 shall be based upon the state board’s salaries,
benefits, travel expense, operating, equipment, administrative
support, and overhead costs.

(c) A public water system may collect a fee from its customers
to recover the fees paid by the public water system pursuant to this
chapter.

(d)  The fees collected pursuant to subdivision (b) of Section
116565 and subdivision (b) of Section 116570 shall be adjusted
annually pursuant to Section 100425, and the adjusted fee amounts
shall be rounded off to the nearest whole dollar.

(e)  Fees assessed pursuant to this chapter shall not exceed actual
costs to either the state board or the local primacy agency, as the
case may be, related to the public water systems assessed the fees.

(f)  The total amount of funds received pursuant to subdivision
(a) of Section 116565, and subdivision (a) of Section 116577 from
public water systems serving 1,000 or more service connections,
for fiscal year 2015-16 shall not exceed fifteen million nine
hundred thirty-eight thousand dollars ($15,938,000).

(g)  The state board shall develop a time accounting standard
designed to do all of the following:

(1)  Provide accurate time accounting.

(2)  Provide accurate invoicing based upon hourly rates
comparable to private sector professional classifications and
comparable rates charged by other states for comparable services.
These rates shall be applied against the time spent by the actual
individuals who perform the work.

(3)  Establish work standards that address work tasks, timing,
completeness, limits on redirection of effort, and limits on the time
spent in the aggregate for each activity.

(4)  Establish overhead charge-back limitations, including, but
not limited to, charge-back limitations on charges relating to
reimbursement of services provided to the state board by other
departments and agencies of the state, that reasonably relate to the
performance of the function.

(5)  Provide appropriate invoice controls.

(h) This section shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 26.  

Section 116590 is added to the Health and Safety
Code, to read:

116590.  

(a) Funds received by the state board pursuant to this
chapter shall be deposited into the Safe Drinking Water Account
that Account, which is hereby established, and shall be available
for use by the state board, upon appropriation by the Legislature,
for the purpose of providing funds necessary to administer this
chapter. Funds in the Safe Drinking Water Account may shall not
be expended for any purpose other than as set forth in this chapter.

(b) A public water system may be permitted to may collect a
fee from its customers to recover the fees paid by the public water
system pursuant to this chapter.

(c) The total amount of funds received for state operations
program costs to administer this chapter for fiscal year 2016-17
shall not exceed thirty million four hundred fifty thousand dollars
($30,450,000) and the total amount of funds received for
administering this chapter for each fiscal year thereafter shall not
increase by more than 5 percent of the amount received in the
previous fiscal year plus any changes to salary, benefit, and
retirement adjustments contained in each annual Budget Act.

(d) This section shall become operative on July 1, 2016.

SEC. 27.  

Section 116595 of the Health and Safety Code is
amended to read:

116595.  

(a)  A public water system under the jurisdiction of
a local primacy agency shall reimburse the local primacy agency
for any enforcement cost incurred by the local primacy agency
related to any of the following relating to that water system:

(1)  Preparing, issuing, and monitoring compliance with, an
order or a citation.

(2)  Preparing and issuing public notification.

(3)  Conducting a hearing pursuant to Section 116625.

(b) The local primacy agency shall submit an invoice to the
public water system that requires payment, before September 1 of
the fiscal year following the fiscal year in which the costs were
incurred. The invoice shall indicate the total hours expended, the
reasons for the expenditure, and the hourly cost rate of the local
primacy agency. The invoice shall not exceed the total costs to the
local primacy agency of enforcement activities specified in this
subdivision. Notwithstanding the reimbursement to the state board
of enforcement costs, if any, pursuant to Section 116577, any
public water system under the jurisdiction of the local primacy
agency shall also reimburse the local primacy agency for
enforcement costs incurred by the local primacy agency pursuant
to this section. The local primacy agency shall not be entitled to
enforcement costs pursuant to this subdivision if a court determines
that enforcement activities were in error. “Enforcement costs” as
used in this subdivision does not include “litigation costs” as used
in Section 116585.

(c) Payment of the invoice shall be made within 90 days of the
date of the invoice. Failure to pay the invoice within 90 days shall
result in a 10-percent late penalty that shall be paid in addition to
the invoiced amount.

(d) The local primacy agency may, in its sole discretion, waive
payment by a public water system of all or any part of the invoice
or the penalty.

SEC. 28.  

Section 2795 of the Public Resources Code is
amended to read:

2795.  

(a) Notwithstanding any other law, moneys from mining
activities on federal lands disbursed by the United States each
fiscal year to this state pursuant to Section 35 of the Mineral Lands
Leasing Act, as amended (30 U.S.C. Sec. 191) shall be deposited
in the Surface Mining and Reclamation Account in the General
Fund, which account is hereby created, in an amount equal to the
appropriation for this chapter contained in the annual Budget Act
for that fiscal year and may be expended, upon that appropriation
by the Legislature, for the purposes of this chapter.

(b) Proposed expenditures from the account shall be included
in a separate item in the Budget Act for each fiscal year for
consideration by the Legislature. Each appropriation from the
account shall be subject to all of the limitations contained in the
Budget Act and to all other fiscal procedures prescribed by law
with respect to the expenditure of state funds.

SEC. 29.  

Article 2.5 (commencing with Section 3130) is added
to Chapter 1 of Division 3 of the Public Resources Code, to read:

 

Article 2.5.  Underground Injection Control

 

3130.  

For purposes of this article, the following terms mean
the following:

(a) “Beneficial use” has the same meaning as set forth in
subdivision (f) of Section 13050 of the Water Code.

(b) “Class II well” has the same meaning as set forth in Section
144.6 of Title 40 of the Code of Federal Regulations.

(c) “Exempted aquifer” has the same meaning as set forth in
Section 144.3 of Title 40 of the Code of Federal Regulations.

(d) “State board” means the State Water Resources Control
Board.

(e) “Underground Injection Control Program” means a program
covering Class II wells for which the division has received primacy
from the United States Environmental Protection Agency pursuant
to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C.
Sec. 300h-4).

3131.  

(a) To ensure the appropriateness of a proposal by the
state for an exempted aquifer determination subject to any
conditions on the subsequent injection of fluids, and prior to
proposing to the United States Environmental Protection Agency
that it exempt an aquifer or portion of an aquifer pursuant to
Section 144.7 of Title 40 of the Code of Federal Regulations, the
division shall consult with the appropriate regional water quality
control board and the state board concerning the conformity of the
proposal with all of the following:

(1) Criteria set forth in Section 146.4 of Title 40 of the Code of
Federal Regulations.

(2) The injection of fluids will not affect the quality of water
that is, or may reasonably be, used for any beneficial use.

(3) The injected fluid will remain in the aquifer or portion of
the aquifer that would be exempted.

(b) Based on the consultation pursuant to subdivision (a), if the
division and the state board concur that an aquifer or portion of
an aquifer may merit consideration for exemption by the United
States Environmental Protection Agency, they shall provide a
public comment period and, with a minimum of 30 days public
notice, jointly conduct a public hearing.

(c) Following review of the public comments, and only if the
division and state board concur that the exemption proposal merits
consideration for exemption, the division shall submit the aquifer
exemption proposal to the United States Environmental Protection
Agency.

3132.  

(a) Before submitting the proposal for an exempted
aquifer determination to the United States Environmental
Protection Agency, the division shall notify the relevant policy
committees of the Legislature of the exemption proposal.

(b) This section shall become inoperative on March 1, 2019,
and, as of January 1, 2020, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2020,
deletes or extends the dates on which it becomes inoperative and
is repealed.

SEC. 30.  

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
and 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.

(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. 31.  

Section 5005 of the Public Resources Code is
amended to read:

5005.  

(a) The department may receive and accept in the name
of the people of the state any gift, dedication, devise, grant, or
other conveyance of title to or any interest in real property,
including water rights, roads, trails, and rights-of-way, to be added
to or used in connection with the state park system. It may receive
and accept gifts, donations, contributions, or bequests of money
to be used in acquiring title to or any interest in real property, or
in improving it as a part of or in connection with the state park
system, or to be used for any of the purposes for which the
department is created. It may also receive and accept personal
property for any purpose connected with the park system.

(b) Subdivision (a) is subject to the requirements and exceptions
set forth in Section 11005 of the Government Code, except that
conditional gifts or bequests of money valued at one hundred
thousand dollars ($100,000) or less, shall not require the approval
of the Director of Finance.

(c) The department shall annually report to the Department of
Finance all conditional gifts or bequests of money valued at one
hundred thousand dollars ($100,000) or less that it accepts and
receives pursuant to subdivision (b).

SEC. 32.  

Section 5097.94 of the Public Resources Code is
amended to read:

5097.94.  

The commission shall have the following powers and
duties:

(a) To identify and catalog places of special religious or social
significance to Native Americans, and known graves and
cemeteries of Native Americans on private lands. The identification
and cataloguing of known graves and cemeteries shall be completed
on or before January 1, 1984. The commission shall notify
landowners on whose property such graves and cemeteries are
determined to exist, and shall identify the Native American group
most likely descended from those Native Americans who may be
interred on the property.

(b) To make recommendations relative to Native American
sacred places that are located on private lands, are inaccessible to
Native Americans, and have cultural significance to Native
Americans for acquisition by the state or other public agencies for
the purpose of facilitating or assuring access thereto by Native
Americans.

(c) To make recommendations to the Legislature relative to
procedures that will voluntarily encourage private property owners
to preserve and protect sacred places in a natural state and to allow
appropriate access to Native American religionists for ceremonial
or spiritual activities.

(d) To appoint necessary clerical staff.

(e) To accept grants or donations, real or in kind, to carry out
the purposes of this chapter and the California Native American
Graves Protection and Repatriation Act of 2001 (Chapter 5
(commencing with Section 8010) of Part 2 of Division 7 of the
Health and Safety Code).

(f) To make recommendations to the Director of Parks and
Recreation and the California Arts Council relative to the California
State Indian Museum and other Indian matters touched upon by
department programs.

(g) To bring an action to prevent severe and irreparable damage
to, or assure appropriate access for Native Americans to, a Native
American sanctified cemetery, place of worship, religious or
ceremonial site, or sacred shrine located on public property,
pursuant to Section 5097.97. If the court finds that severe and
irreparable damage will occur or that appropriate access will be
denied, and appropriate mitigation measures are not available, it
shall issue an injunction, unless it finds, on clear and convincing
evidence, that the public interest and necessity require otherwise.
The Attorney General shall represent the commission and the state
in litigation concerning affairs of the commission, unless the
Attorney General has determined to represent the agency against
whom the commission’s action is directed, in which case the
commission shall be authorized to employ other counsel. In an
action to enforce this subdivision the commission shall introduce
evidence showing that a cemetery, place, site, or shrine has been
historically regarded as a sacred or sanctified place by Native
American people and represents a place of unique historical and
cultural significance to an Indian tribe or community.

(h) To request and utilize the advice and service of all federal,
state, local, and regional agencies, including for purposes of
carrying out the California Native American Graves Protection
and Repatriation Act of 2001 (Chapter 5 (commencing with Section
8010) of Part 2 of Division 7 of the Health and Safety Code).

(i) To assist Native Americans in obtaining appropriate access
to sacred places that are located on public lands for ceremonial or
spiritual activities.

(j) To assist state agencies in any negotiations with agencies of
the federal government for the protection of Native American
sacred places that are located on federal lands.

(k) (1) To mediate, upon application of either of the parties,
disputes arising between landowners and known descendants
relating to the treatment and disposition of Native American human
burials, skeletal remains, and items associated with Native
American burials.

(2) The agreements shall provide protection to Native American
human burials and skeletal remains from vandalism and inadvertent
destruction and provide for sensitive treatment and disposition of
Native American burials, skeletal remains, and associated grave
goods consistent with the planned use of, or the approved project
on, the land.

(l) To assist interested landowners in developing agreements
with appropriate Native American groups for treating or disposing,
with appropriate dignity, of the human remains and any items
associated with Native American burials.

(m) To provide each California Native American tribe, as
defined in Section 21073, on or before July 1, 2016, with a list of
all public agencies that may be a lead agency pursuant to Division
13 (commencing with Section 21000) within the geographic area
with which the tribe is traditionally and culturally affiliated, the
contact information of those public agencies, and information on
how the tribe may request the public agency to notify the tribe of
projects within the jurisdiction of those public agencies for the
purposes of requesting consultation pursuant to Section 21080.3.1.

(n) (1) To assume the powers and duties of the former
Repatriation Oversight Commission and meet, when necessary
and at least quarterly, to perform the following duties:

(A) Order the repatriation of human remains and cultural items
in accordance with the act.

(B) Establish mediation procedures and, upon the application
of the parties involved, mediate disputes among tribes and
museums and agencies relating to the disposition of human remains
and cultural items. The commission shall have the power of
subpoena for purposes of discovery and may impose civil penalties
against any agency or museum that intentionally or willfully fails
to comply with the act. Members of the commission and
commission staff shall receive training in mediation for purposes
of this subparagraph. The commission may delegate its
responsibility to mediate disputes to a certified mediator or
commission staff.

(C) Establish and maintain an Internet Web site for
communication among tribes and museums and agencies.

(D) Upon the request of tribes or museums and agencies, analyze
and make decisions regarding providing financial assistance to aid
in specific repatriation activities.

(E) Make recommendations to the Legislature to assist tribes
in obtaining the dedication of appropriate state lands for the
purposes of reinterment of human remains and cultural items.

(F) (i) Prepare and submit to the Legislature an annual report
detailing commission activities, disbursement of funds, and dispute
resolutions relating to the repatriation activities under the act.

(ii) A report submitted to the Legislature pursuant to this
subparagraph shall be submitted in compliance with Section 9795
of the Government Code.

(G) Refer any known noncompliance with the federal Native
American Graves Protection and Repatriation Act (25 U.S.C. Sec.
3001 et seq.) to the United States Attorney General and the
Secretary of the Interior.

(H) Impose administrative civil penalties pursuant to Section
8029 of the Health and Safety Code against an agency or museum
that is determined by the commission to have violated the act.

(I) Establish those rules and regulations the commission
determines to be necessary for the administration of the act.

(2) For purposes of this subdivision, the following terms have
the following meanings:

(A) “Act” means the California Native American Graves
Protection and Repatriation Act (Chapter 5 (commencing with
Section 8010) of Part 2 of Division 7 of the Health and Safety
Code).

(B) “Tribe” means a “California Indian tribe” as that term is
used in the act.

SEC. 33.  

Section 21190 of the Public Resources Code is
amended to read:

21190.  

There is in this state the California Environmental
Protection Program, which shall be concerned with the preservation
and protection of California’s environment. In this connection, the
Legislature hereby finds and declares that, since the inception of
the program pursuant to the Marks-Badham Environmental
Protection and Research Act, the Department of Motor Vehicles
has, in the course of issuing environmental license plates,
consistently informed potential purchasers of those plates, by
means of a detailed brochure, of the manner in which the program
functions, the particular purposes for which revenues from the
issuance of those plates can lawfully be expended, and examples
of particular projects and programs that have been financed by
those revenues. Therefore, because of this representation by the
Department of Motor Vehicles, purchasers expect and rely that
the moneys paid by them will be expended only for those particular
purposes, which results in an obligation on the part of the state to
expend the revenues only for those particular purposes.

Accordingly, all funds expended pursuant to this division shall
be used only to support identifiable projects and programs of state
agencies, cities, cities and counties, counties, districts, the
University of California, private nonprofit environmental and land
acquisition organizations, and private research organizations that
have a clearly defined benefit to the people of the State of
California and that have one or more of the following purposes:

(a) The control and abatement of air pollution, including all
phases of research into the sources, dynamics, and effects of
environmental pollutants.

(b) The acquisition, preservation, restoration, or any combination
thereof, of natural areas or ecological reserves.

(c) Environmental education, including formal school programs
and informal public education programs. The State Department of
Education may administer moneys appropriated for these programs,
but shall distribute not less than 90 percent of moneys appropriated
for the purposes of this subdivision to fund environmental
education programs of school districts, other local schools, state
agencies other than the State Department of Education, and
community organizations. Not more than 10 percent of the moneys
appropriated for environmental education may be used for State
Department of Education programs or defraying administrative
costs.

(d) Protection of nongame species and threatened and
endangered plants and animals.

(e) Protection, enhancement, and restoration of fish and wildlife
habitat and related water quality, including review of the potential
impact of development activities and land use changes on that
habitat.

(f) The purchase, on an opportunity basis, of real property
consisting of sensitive natural areas for the state park system and
for local and regional parks, and deferred maintenance projects at
state parks.

(g) Reduction or minimization of the effects of soil erosion and
the discharge of sediment into the waters of the Lake Tahoe region,
including the restoration of disturbed wetlands and stream
environment zones, through projects by the California Tahoe
Conservancy and grants to local public agencies, state agencies,
federal agencies, and nonprofit organizations.

(h) Scientific research on the risks to California’s natural
resources and communities caused by the impacts of climate
change.

SEC. 34.  

Section 25422 of the Public Resources Code is
amended to read:

25422.  

(a) Federal funds available to the commission pursuant
to Chapter 5.6 (commencing with Section 25460) may be used by
the commission to augment funding for grants and loans pursuant
to this chapter. Any federal funds used for loans shall, when repaid,
be deposited into the State Energy Conservation Assistance
Account and used to make additional loans pursuant to this chapter.

(b) A separate subaccount shall be established within the State
Energy Conservation Assistance Account to track the award and
repayment of loans from federal funds, including any interest
earnings, in accordance with the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5).

(c) Notwithstanding subdivision (a), the commission may use
loan repayments and all interest earnings on or accruing in the
subaccount established pursuant to subdivision (b) for energy
efficiency, energy conservation, renewable energy, and other
energy-related projects and activities authorized by the federal
American Recovery and Reinvestment Act of 2009 or subsequent
federal acts related to the federal American Recovery and
Reinvestment Act of 2009. Unless prohibited by the federal
American Recovery and Reinvestment Act of 2009, the
commission may augment funding for any programs and measures
authorized by this division.

(d) The commission shall transfer to the Energy Efficient State
Property Revolving Fund, established pursuant to Section 25471,
the moneys remaining in the subaccount established pursuant to
subdivision (b), including loan repayments and interest earnings
that are deposited in the subaccount. The commission shall transfer
the moneys not more frequently than annually and in an amount
based on the balance in the subaccount at the time of transfer.

SEC. 35.  

Section 25464 of the Public Resources Code is
amended to read:

25464.  

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

(1) “Fund” means the Clean and Renewable Energy Business
Financing Revolving Loan Fund.

(2) “Program” means the Clean and Renewable Energy Business
Financing Revolving Loan Program.

(b) (1) The commission may use federal funds available
pursuant to this chapter to implement the Clean and Renewable
Energy Business Financing Revolving Loan Program to provide
low interest loans to California clean and renewable energy
manufacturing businesses.

(2) The commission may use other funding sources to leverage
loans awarded under the program.

(c) The commission may work directly with the Governor’s
Office of Business and Economic Development, the Treasurer, or
any other state agency, board, commission, or authority to
implement and administer the program, and may contract for
private services as needed to implement the program.

(d) The commission may collect an application fee from
applicants applying for funding under the program to help offset
the costs of administering the program.

(e) (1) The Clean and Renewable Energy Business Financing
Revolving Loan Fund is hereby established in the State Treasury
to implement the program. The commission is authorized to
administer the fund for this purpose. Notwithstanding Section
13340 of the Government Code, the money in the fund is
continuously appropriated to the commission, without regard to
fiscal years, to implement the program.

(2) Upon direction by the commission, the Controller shall create
any accounts or subaccounts within the fund that the commission
determines are necessary to facilitate management of the fund.

(3) The Controller shall disburse and receive moneys in the fund
for purposes of the program and as authorized by the commission.

(4) All loans and repayments of loans made pursuant to this
section, including interest payments, penalty payments, and all
interest earning on or accruing to any moneys in the fund, shall be
deposited in the fund and shall be available for the purposes of
this section.

(5) The commission may expend up to 5 percent of moneys in
the fund for its administrative costs to implement the program.

(f) Federal funds available to the commission pursuant to this
chapter shall be transferred to the fund in the loan amounts when
loans are awarded under the program by the commission.

(g) Notwithstanding paragraph (4) of subdivision (e), the
commission may use loan repayments and all interest earnings on
or accruing in the fund for energy efficiency, energy conservation,
renewable energy, and other energy-related projects and activities
authorized by the federal American Recovery and Reinvestment
Act of 2009 or subsequent federal acts related to the federal
American Recovery and Reinvestment Act of 2009. Unless
prohibited by the federal American Recovery and Reinvestment
Act of 2009, the commission may augment funding for any
programs and measures authorized by this division.

(h) The commission shall transfer to the Energy Efficient State
Property Revolving Fund established pursuant to Section 25471
repayments of, and all accrued interest on, loans funded by the
federal American Recovery and Reinvestment Act of 2009 (Public
Law 111-5) pursuant to this section. The commission shall transfer
the moneys not more frequently than annually and in an amount
based on the balance in the fund at the time of transfer.

SEC. 36.  

Section 25471 of the Public Resources Code is
amended to read:

25471.  

(a) There is hereby created in the State Treasury the
Energy Efficient State Property Revolving Fund for the purpose
of implementing this chapter. Notwithstanding Section 13340 of
the Government Code, the money in this fund is continuously
appropriated to the department, without regard to fiscal years, for
loans for projects on state-owned buildings and facilities to achieve
greater, long-term energy efficiency, energy conservation, and
energy cost and use avoidance.

(b) The fund shall be administered by the department. The
department may use other funding sources to leverage project
loans.

(c) For the 2009-10 fiscal year, the sum of twenty-five million
dollars ($25,000,000) shall be transferred into the Energy Efficient
State Property Revolving Fund from money received by the
commission pursuant to the act to be used for purposes of the
federal State Energy Program.

(d) (1) For the 2011-12 and 2012-13 fiscal years, the
commission may transfer up to fifty million dollars ($50,000,000),
in total, as the commission determines to be appropriate, into the
Energy Efficient State Property Revolving Fund from money
received by the commission pursuant to the act to be used for the
purposes of the federal State Energy Program.

(2) The commission shall provide written notice to the Controller
on the amount and timing of the transfer of moneys into the fund.

(3) Subject to the limitations of paragraph (1), the commission
may make multiple transfers to allow for reallocating available
funds from project cancellations and project savings.

(4) Notwithstanding Section 9795 of the Government Code, the
commission shall notify, in writing, the Joint Legislative Budget
Committee when a transfer is made pursuant to this subdivision.

(e) The Controller shall disburse moneys in the fund for the
purposes of this chapter, as authorized by the department.

(f) Moneys in the fund, including all interest earnings, shall be
clearly delineated and distinctly accounted for in accordance with
the requirements of the act.

(g) Pursuant to subdivision (d) of Section 25422 and subdivision
(h) of Section 25464, the commission shall transfer to the Energy
Efficient State Property Revolving Fund repayments of, and all
accrued interest on, loans funded by the federal American Recovery
and Reinvestment Act of 2009 (Public Law 111-5).

SEC. 37.  

Section 25806 of the Public Resources Code is
amended to read:

25806.  

(a) A person who submits to the commission an
application for certification for a proposed generating facility shall
submit with the application a fee of two hundred fifty thousand
dollars ($250,000) plus five hundred dollars ($500) per megawatt
of gross generating capacity of the proposed facility. The total fee
accompanying an application shall not exceed seven hundred fifty
thousand dollars ($750,000).

(b) A person who receives certification of a proposed generating
facility shall pay an annual fee of twenty-five thousand dollars
($25,000). For a facility certified on or after January 1, 2004, the
first payment of the annual fee is due on the date the commission
adopts the final decision. All subsequent payments are due by July
1 of each year in which the facility retains its certification. The
fiscal year for the annual fee is July 1 to June 30, inclusive.

(c) The fees in subdivisions (a), (b), and (e) shall be adjusted
annually to reflect the percentage change in the Implicit Price
Deflator for State and Local Government Purchases of Goods and
Services, as published by the United States Department of
Commerce.

(d) The Energy Facility License and Compliance Fund is hereby
created in the State Treasury. All fees received by the commission
pursuant to this section shall be remitted to the Treasurer for
deposit in the fund. The money in the fund shall be expended, upon
appropriation by the Legislature, for processing applications for
certification and for compliance monitoring.

(e) A person who submits to the commission a petition to amend
an existing project that previously received certification shall
submit with the petition a fee of five thousand dollars ($5,000).
The commission shall conduct a full accounting of the actual cost
of processing the petition to amend, for which the project owner
shall reimburse the commission if the costs exceed five thousand
dollars ($5,000). The total reimbursement and fees owed by a
project owner for each petition to amend shall not exceed the
amount of the maximum total filing fee for an application for
certification as specified in subdivision (a) of seven hundred fifty
thousand dollars ($750,000), adjusted annually pursuant to
subdivision (c). Any reimbursement and fees received by the
commission pursuant to this subdivision shall be deposited in the
Energy Facility License and Compliance Fund. This subdivision
does not apply to a change in ownership or operational control of
a project.

SEC. 38.  

Section 42885.5 of the Public Resources Code is
amended to read:

42885.5.  

(a) The department shall adopt a five-year plan, which
shall be updated every two years, to establish goals and priorities
for the waste tire program and each program element.

(b) On or before July 1, 2001, and every two years thereafter,
the department shall submit the adopted five-year plan to the
appropriate policy and fiscal committees of the Legislature. The
department shall include in the plan elements addressing
programmatic and fiscal issues, including, but not limited to, the
hierarchy used by the department to maximize productive uses of
waste and used tires, and the performance objectives and
measurement criteria used by the department to evaluate the success
of its waste and used tire recycling program. Additionally, based
upon performance measures developed by the department, the plan
shall describe the effectiveness of each element of the program,
including, but not limited to, the following:

(1) Enforcement and regulations relating to the storage of waste
and used tires.

(2) Cleanup, abatement, or other remedial action related to waste
tire stockpiles throughout the state.

(3) Research directed at promoting and developing alternatives
to the landfill disposal of waste tires.

(4) Market development and new technology activities for used
tires and waste tires.

(5) The waste and used tire hauler program, the registration of,
and reporting by, tire brokers, and the manifest system.

(6) A description of the grants, loans, contracts, and other
expenditures proposed to be made by the department under the
tire recycling program.

(7) Until June 30, 2015, the grant program authorized under
Section 42872.5 to encourage the use of waste tires, including, but
not limited to, rubberized asphalt concrete technology, in public
works projects.

(8) Border region activities, conducted in coordination with the
California Environmental Protection Agency, including, but not
limited to, all of the following:

(A) Training programs to assist Mexican waste and used tire
haulers meet the requirements for hauling those tires in California.

(B) Environmental education training.

(C) In coordination with the California-Mexico Border Relations
Council, development of a waste tire abatement plan, which may
also provide for the abatement of solid waste, with the appropriate
government entities of California and Mexico.

(D) Tracking both the legal and illegal waste and used tire flow
across the border and recommending revisions to the waste tire
policies of California and Mexico.

(E) Coordination with businesses operating in the border region
and with Mexico, with regard to applying the same environmental
and control requirements throughout the border region.

(F) Development of projects in Mexico in the California-Mexico
border region, as defined by the La Paz Agreement, that include,
but are not limited to, education, infrastructure, mitigation, cleanup,
prevention, reuse, and recycling projects, that address the
movement of used tires from California to Mexico, and support
the cleanup of illegally disposed waste tires and solid waste along
the border that could negatively impact California’s environment.

(9) Grants to certified community conservation corps and
community conservation corps, pursuant to paragraph (3) of
subdivision (a) of, and paragraph (3) of subdivision (b) of, Section
17001, for purposes of the programs specified in paragraphs (2)
and (6) and for related education and outreach.

(c) The department shall base the budget for the California Tire
Recycling Act and program funding on the plan.

(d) The plan may not propose financial or other support that
promotes, or provides for research for the incineration of tires.

SEC. 39.  

The Legislature finds and declares all of the
following:

(a) The United States Department of Defense provides national
defense and global security that benefits Californians and
California’s economy.

(b) The United States Department of Defense facilities located
in California provide more than $70,000,000,000 in direct spending
and 300,000 jobs in California.

(c) The United States Department of Defense is working to
achieve energy efficiency and renewable energy goals to meet
both presidential and departmental directives.

(d) The amount of electricity that the United States Department
of Defense facilities located in California seek to generate on their
own premises will serve their own electricity needs.

(e) Military bases approximate small cities in electrical load,
diversity of land uses, and size.

(f) Given the crucial contribution of our military, California
should assist military facilities in California in achieving their
energy independence goals.

(g) The military owns and maintains its electric distribution
system. Generation serving the military’s own electricity load
without export should not require upgrades to this distribution
system. Even if upgrades are necessary, the military, not the
ratepayers, will bear these costs.

(h) At the request of the Governor and the electrical
corporations, military bases have historically demonstrated their
commitment and ability to provide demand reduction management
at times of grid emergencies.

(i) California has an extensive history of promoting renewable
energy resources, reducing emissions of greenhouse gases, and
stewardship of the environment.

(j) Edmund G. Brown Jr., as Governor of California, has been
a staunch guardian of the environment while promoting
conservation and efficiencies in his current and prior terms as
Governor.

(k) On April 29, 2015, Governor Brown issued Executive Order
B-30-15 establishing a target of reducing emissions of greenhouse
gases in California by 40 percent below 1990 levels by 2030, the
most aggressive benchmark enacted by any government in North
America for reducing dangerous carbon emissions over the next
decade and a half.

(l) An analysis of petroleum usage has resulted in the United
States Navy and Marine Corps determining they are too dependent
on petroleum, a situation that degrades the strategic position of
the country and the tactical performance of the two forces.

(m) In order to improve energy security, increase energy
independence and help lead the nation toward a clean energy
economy, the Department of the Navy established five energy
goals to move it and the Marine Corps away from their reliance
on petroleum while aggressively increasing their use of alternative
energy. The five goals are:

(1) Mandatory evaluation of energy factors for systems and
buildings contracts.

(2) A demonstration of the Department of the Navy’s Green
Strike Group, including nuclear vessels, hybrid electric ships, and
aircraft powered by biofuels, in local operations by 2012, with it
sailing by 2016.

(3) A 50-percent reduction of petroleum usage in the United
States Navy’s commercial fleet by 2015.

(4) At least 50 percent of shore-based energy requirements for
the Department of the Navy will come from alternative sources
plus 50 percent of its installations will be net-zero by 2020.

(5) Fifty percent of the total energy consumption of the
Department of the Navy will come from alternative sources by
2020.

SEC. 40.  

Section 2827 of the Public Utilities Code is amended
to read:

2827.  

(a) The Legislature finds and declares that a program
to provide net energy metering combined with net surplus
compensation, co-energy metering, and wind energy co-metering
for eligible customer-generators is one way to encourage substantial
private investment in renewable energy resources, stimulate in-state
economic growth, reduce demand for electricity during peak
consumption periods, help stabilize California’s energy supply
infrastructure, enhance the continued diversification of California’s
energy resource mix, reduce interconnection and administrative
costs for electricity suppliers, and encourage conservation and
efficiency.

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

(1) “Co-energy metering” means a program that is the same in
all other respects as a net energy metering program, except that
the local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula
as provided in subdivision (i).

(2) “Electrical cooperative” means an electrical cooperative as
defined in Section 2776.

(3) “Electric utility” means an electrical corporation, a local
publicly owned electric utility, or an electrical cooperative, or any
other entity, except an electric service provider, that offers electrical
service. This section shall not apply to a local publicly owned
electric utility that serves more than 750,000 customers and that
also conveys water to its customers.

(4) (A) “Eligible customer-generator” means a residential
customer, small commercial customer as defined in subdivision
(h) of Section 331, or commercial, industrial, or agricultural
customer of an electric utility, who uses a renewable electrical
generation facility, or a combination of those facilities, with a total
capacity of not more than one megawatt, that is located on the
customer’s owned, leased, or rented premises, and is interconnected
and operates in parallel with the electrical grid, and is intended
primarily to offset part or all of the customer’s own electrical
requirements.

(B) (i) Notwithstanding subparagraph (A), “eligible
customer-generator” includes the Department of Corrections and
Rehabilitation using a renewable electrical generation technology,
or a combination of renewable electrical generation technologies,
with a total capacity of not more than eight megawatts, that is
located on the department’s owned, leased, or rented premises,
and is interconnected and operates in parallel with the electrical
grid, and is intended primarily to offset part or all of the facility’s
own electrical requirements. The amount of any wind generation
exported to the electrical grid shall not exceed 1.35 megawatt at
any time.

(ii) Notwithstanding paragraph (2) of subdivision (e), an
electrical corporation shall be afforded a prudent but necessary
time, as determined by the executive director of the commission,
to study the impacts of a request for interconnection of a renewable
generator with a capacity of greater than one megawatt under this
subparagraph. If the study reveals the need for upgrades to the
transmission or distribution system arising solely from the
interconnection, the electrical corporation shall be afforded the
time necessary to complete those upgrades before the
interconnection and those costs shall be borne by the
customer-generator. Upgrade projects shall comply with applicable
state and federal requirements, including requirements of the
Federal Energy Regulatory Commission.

(C) (i) For purposes of this subparagraph, a “United States
Armed Forces base or facility” is an establishment under the
jurisdiction of the United States Army, Navy, Air Force, Marine
Corps, or Coast Guard.

(ii) Notwithstanding subparagraph (A), a United States Armed
Forces base or facility is an “eligible customer-generator” if the
base or facility uses a renewable electrical generation facility, or
a combination of those facilities, the renewable electrical generation
facility is located on premises owned, leased, or rented by the
United States Armed Forces base or facility, the renewable
electrical generation facility is interconnected and operates in
parallel with the electrical grid, the renewable electrical generation
facility is intended primarily to offset part or all of the base or
facility’s own electrical requirements, and the renewable electrical
generation facility has a generating capacity that does not exceed
the lesser of 12 megawatts or one megawatt greater than the
minimum load of the base or facility over the prior 36 months.
begin insert Unless prohibited by federal law, a renewable electrical generation
facility shall not be eligible for net energy metering for privatized
military housing pursuant to this subparagraph if the renewable
electrical generation facility was procured using a sole source
process. A renewable electrical generation facility procured using
best value criteria, if otherwise eligible, may be used for net energy
metering for privatized military housing pursuant to this
subparagraph. For these purposes, “best value criteria” means
a value determined by objective criteria and may include, but is
not limited to, price, features, functions, and life-cycle costs. end insert

(iii) A United States Armed Forces base or facility that is an
eligible customer generator pursuant to this subparagraph shall
not receive compensation for exported generation.

(iv) Notwithstanding paragraph (2) of subdivision (e), an
electrical corporation shall be afforded a prudent but necessary
time, as determined by the executive director of the commission
but not less than 60 working days, to study the impacts of a request
for interconnection of a renewable electrical generation facility
with a capacity of greater than one megawatt pursuant to this
subparagraph. If the study reveals the need for upgrades to the
transmission or distribution system arising solely from the
interconnection, the electrical corporation shall be afforded the
time necessary to complete those upgrades before the
interconnection and the costs of those upgrades shall be borne by
the eligible customer-generator. Upgrade projects shall comply
with applicable state and federal requirements, including
requirements of the Federal Energy Regulatory Commission. For
any renewable generation facility that interconnects directly to the
transmission grid or that requires transmission upgrades, the United
States Armed Forces base or facility shall comply with all Federal
Energy Regulatory Commission interconnection procedures and
requirements.

(v) An electrical corporation shall make a tariff, as approved
by the commission, available pursuant to this subparagraph by
November 1, 2015.

(5) “Large electrical corporation” means an electrical
corporation with more than 100,000 service connections in
California.

(6) “Net energy metering” means measuring the difference
between the electricity supplied through the electrical grid and the
electricity generated by an eligible customer-generator and fed
back to the electrical grid over a 12-month period as described in
subdivisions (c) and (h).

(7) “Net surplus customer-generator” means an eligible
customer-generator that generates more electricity during a
12-month period than is supplied by the electric utility to the
eligible customer-generator during the same 12-month period.

(8) “Net surplus electricity” means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed
by that eligible customer-generator.

(9) “Net surplus electricity compensation” means a per
kilowatthour rate offered by the electric utility to the net surplus
customer-generator for net surplus electricity that is set by the
ratemaking authority pursuant to subdivision (h).

(10) “Ratemaking authority” means, for an electrical
corporation, the commission, for an electrical cooperative, its
ratesetting body selected by its shareholders or members, and for
a local publicly owned electric utility, the local elected body
responsible for setting the rates of the local publicly owned utility.

(11) “Renewable electrical generation facility” means a facility
that generates electricity from a renewable source listed in
paragraph (1) of subdivision (a) of Section 25741 of the Public
Resources Code. A small hydroelectric generation facility is not
an eligible renewable electrical generation facility if it will cause
an adverse impact on instream beneficial uses or cause a change
in the volume or timing of streamflow.

(12) “Wind energy co-metering” means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where
the difference between the electricity supplied through the electrical
grid and the electricity generated by an eligible customer-generator
and fed back to the electrical grid over a 12-month period is as
described in subdivision (h). Wind energy co-metering shall be
accomplished pursuant to Section 2827.8.

(c) (1) Except as provided in paragraph (4) and in Section
2827.1, every electric utility shall develop a standard contract or
tariff providing for net energy metering, and shall make this
standard contract or tariff available to eligible customer-generators,
upon request, on a first-come-first-served basis until the time that
the total rated generating capacity used by eligible
customer-generators exceeds 5 percent of the electric utility’s
aggregate customer peak demand. Net energy metering shall be
accomplished using a single meter capable of registering the flow
of electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the eligible customer-generator, at the expense
of the electric utility, and the additional metering shall be used
only to provide the information necessary to accurately bill or
credit the eligible customer-generator pursuant to subdivision (h),
or to collect generating system performance information for
research purposes relative to a renewable electrical generation
facility. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the eligible customer-generator shall
be responsible for all expenses involved in purchasing and
installing a meter that is able to measure electricity flow in two
directions. If an additional meter or meters are installed, the net
energy metering calculation shall yield a result identical to that of
a single meter. An eligible customer-generator that is receiving
service other than through the standard contract or tariff may elect
to receive service through the standard contract or tariff until the
electric utility reaches the generation limit set forth in this
paragraph. Once the generation limit is reached, only eligible
customer-generators that had previously elected to receive service
pursuant to the standard contract or tariff have a right to continue
to receive service pursuant to the standard contract or tariff.
Eligibility for net energy metering does not limit an eligible
customer-generator’s eligibility for any other rebate, incentive, or
credit provided by the electric utility, or pursuant to any
governmental program, including rebates and incentives provided
pursuant to the California Solar Initiative.

(2) An electrical corporation shall include a provision in the net
energy metering contract or tariff requiring that any customer with
an existing electrical generating facility and meter who enters into
a new net energy metering contract shall provide an inspection
report to the electrical corporation, unless the electrical generating
facility and meter have been installed or inspected within the
previous three years. The inspection report shall be prepared by a
California licensed contractor who is not the owner or operator of
the facility and meter. A California licensed electrician shall
perform the inspection of the electrical portion of the facility and
meter.

(3) (A) On an annual basis, every electric utility shall make
available to the ratemaking authority information on the total rated
generating capacity used by eligible customer-generators that are
customers of that provider in the provider’s service area and the
net surplus electricity purchased by the electric utility pursuant to
this section.

(B) An electric service provider operating pursuant to Section
394 shall make available to the ratemaking authority the
information required by this paragraph for each eligible
customer-generator that is their customer for each service area of
an electrical corporation, local publicly owned electrical utility,
or electrical cooperative, in which the eligible customer-generator
has net energy metering.

(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electric
utilities, and for using that information to determine when, pursuant
to paragraphs (1) and (4), an electric utility is not obligated to
provide net energy metering to additional eligible
customer-generators in its service area.

(4) (A) An electric utility that is not a large electrical
corporation is not obligated to provide net energy metering to
additional eligible customer-generators in its service area when
the combined total peak demand of all electricity used by eligible
customer-generators served by all the electric utilities in that
service area furnishing net energy metering to eligible
customer-generators exceeds 5 percent of the aggregate customer
peak demand of those electric utilities.

(B) The commission shall require every large electrical
corporation to make the standard contract or tariff available to
eligible customer-generators, continuously and without
interruption, until such times as the large electrical corporation
reaches its net energy metering program limit or July 1, 2017,
whichever is earlier. A large electrical corporation reaches its
program limit when the combined total peak demand of all
electricity used by eligible customer-generators served by all the
electric utilities in the large electrical corporation’s service area
furnishing net energy metering to eligible customer-generators
exceeds 5 percent of the aggregate customer peak demand of those
electric utilities. For purposes of calculating a large electrical
corporation’s program limit, “aggregate customer peak demand”
means the highest sum of the noncoincident peak demands of all
of the large electrical corporation’s customers that occurs in any
calendar year. To determine the aggregate customer peak demand,
every large electrical corporation shall use a uniform method
approved by the commission. The program limit calculated
pursuant to this paragraph shall not be less than the following:

(i) For San Diego Gas and Electric Company, when it has made
607 megawatts of nameplate generating capacity available to
eligible customer-generators.

(ii) For Southern California Edison Company, when it has made
2,240 megawatts of nameplate generating capacity available to
eligible customer-generators.

(iii) For Pacific Gas and Electric Company, when it has made
2,409 megawatts of nameplate generating capacity available to
eligible customer-generators.

(C) Every large electrical corporation shall file a monthly report
with the commission detailing the progress toward the net energy
metering program limit established in subparagraph (B). The report
shall include separate calculations on progress toward the limits
based on operating solar energy systems, cumulative numbers of
interconnection requests for net energy metering eligible systems,
and any other criteria required by the commission.

(D) Beginning July 1, 2017, or upon reaching the net metering
program limit of subparagraph (B), whichever is earlier, the
obligation of a large electrical corporation to provide service
pursuant to a standard contract or tariff shall be pursuant to Section
2827.1 and applicable state and federal requirements.

(d) Every electric utility shall make all necessary forms and
contracts for net energy metering and net surplus electricity
compensation service available for download from the Internet.

(e) (1) Every electric utility shall ensure that requests for
establishment of net energy metering and net surplus electricity
compensation are processed in a time period not exceeding that
for similarly situated customers requesting new electric service,
but not to exceed 30 working days from the date it receives a
completed application form for net energy metering service or net
surplus electricity compensation, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction.

(2) Every electric utility shall ensure that requests for an
interconnection agreement from an eligible customer-generator
are processed in a time period not to exceed 30 working days from
the date it receives a completed application form from the eligible
customer-generator for an interconnection agreement.

(3) If an electric utility is unable to process a request within the
allowable timeframe pursuant to paragraph (1) or (2), it shall notify
the eligible customer-generator and the ratemaking authority of
the reason for its inability to process the request and the expected
completion date.

(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365, or Section 365.1,
with an electric service provider that does not provide distribution
service for the direct transactions, the electric utility that provides
distribution service for the eligible customer-generator is not
obligated to provide net energy metering or net surplus electricity
compensation to the customer.

(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 or 365.1 with an
electric service provider, and the customer is an eligible
customer-generator, the electric utility that provides distribution
service for the direct transactions may recover from the customer’s
electric service provider the incremental costs of metering and
billing service related to net energy metering and net surplus
electricity compensation in an amount set by the ratemaking
authority.

(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract
or tariff shall be identical, with respect to rate structure, all retail
rate components, and any monthly charges, to the contract or tariff
to which the same customer would be assigned if the customer did
not use a renewable electrical generation facility, except that
eligible customer-generators shall not be assessed standby charges
on the electrical generating capacity or the kilowatthour production
of a renewable electrical generation facility. The charges for all
retail rate components for eligible customer-generators shall be
based exclusively on the customer-generator’s net kilowatthour
consumption over a 12-month period, without regard to the eligible
customer-generator’s choice as to from whom it purchases
electricity that is not self-generated. Any new or additional demand
charge, standby charge, customer charge, minimum monthly
charge, interconnection charge, or any other charge that would
increase an eligible customer-generator’s costs beyond those of
other customers who are not eligible customer-generators in the
rate class to which the eligible customer-generator would otherwise
be assigned if the customer did not own, lease, rent, or otherwise
operate a renewable electrical generation facility is contrary to the
intent of this section, and shall not form a part of net energy
metering contracts or tariffs.

(h) For eligible customer-generators, the net energy metering
calculation shall be made by measuring the difference between
the electricity supplied to the eligible customer-generator and the
electricity generated by the eligible customer-generator and fed
back to the electrical grid over a 12-month period. The following
rules shall apply to the annualized net metering calculation:

(1) The eligible residential or small commercial
customer-generator, at the end of each 12-month period following
the date of final interconnection of the eligible
customer-generator’s system with an electric utility, and at each
anniversary date thereafter, shall be billed for electricity used
during that 12-month period. The electric utility shall determine
if the eligible residential or small commercial customer-generator
was a net consumer or a net surplus customer-generator during
that period.

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

(A) For all eligible customer-generators taking service under
contracts or tariffs employing “baseline” and “over baseline” rates,
any net monthly consumption of electricity shall be calculated
according to the terms of the contract or tariff to which the same
customer would be assigned to, or be eligible for, if the customer
was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the
net kilowatthours generated shall be valued at the same price per
kilowatthour as the electric utility would charge for the baseline
quantity of electricity during that billing period, and if the number
of kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
utility would charge for electricity over the baseline quantity during
that billing period.

(B) For all eligible customer-generators taking service under
contracts or tariffs employing time-of-use rates, any net monthly
consumption of electricity shall be calculated according to the
terms of the contract or tariff to which the same customer would
be assigned, or be eligible for, if the customer was not an eligible
customer-generator. When those same customer-generators are
net generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric utility would charge for retail
kilowatthour sales during that same time-of-use period. If the
eligible customer-generator’s time-of-use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (1)
of subdivision (c) shall apply.

(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance
of moneys owed to the electric utility for net consumption of
electricity or credits owed to the eligible customer-generator for
net generation of electricity shall be carried forward as a monetary
value until the end of each 12-month period. For all eligible
commercial, industrial, and agricultural customer-generators, the
net balance of moneys owed shall be paid in accordance with the
electric utility’s normal billing cycle, except that if the eligible
commercial, industrial, or agricultural customer-generator is a net
electricity producer over a normal billing cycle, any excess
kilowatthours generated during the billing cycle shall be carried
over to the following billing period as a monetary value, calculated
according to the procedures set forth in this section, and appear as
a credit on the eligible commercial, industrial, or agricultural
customer-generator’s account, until the end of the annual period
when paragraph (3) shall apply.

(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric utility during
that same period, the eligible customer-generator is a net surplus
customer-generator and the electric utility, upon an affirmative
election by the net surplus customer-generator, shall either (A)
provide net surplus electricity compensation for any net surplus
electricity generated during the prior 12-month period, or (B) allow
the net surplus customer-generator to apply the net surplus
electricity as a credit for kilowatthours subsequently supplied by
the electric utility to the net surplus customer-generator. For an
eligible customer-generator that does not affirmatively elect to
receive service pursuant to net surplus electricity compensation,
the electric utility shall retain any excess kilowatthours generated
during the prior 12-month period. The eligible customer-generator
not affirmatively electing to receive service pursuant to net surplus
electricity compensation shall not be owed any compensation for
the net surplus electricity unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatthours. Every electric utility shall provide notice to
eligible customer-generators that they are eligible to receive net
surplus electricity compensation for net surplus electricity, that
they must elect to receive net surplus electricity compensation,
and that the 12-month period commences when the electric utility
receives the eligible customer-generator’s election. For an electric
utility that is an electrical corporation or electrical cooperative,
the commission may adopt requirements for providing notice and
the manner by which eligible customer-generators may elect to
receive net surplus electricity compensation.

(4) (A) An eligible customer-generator with multiple meters
may elect to aggregate the electrical load of the meters located on
the property where the renewable electrical generation facility is
located and on all property adjacent or contiguous to the property
on which the renewable electrical generation facility is located, if
those properties are solely owned, leased, or rented by the eligible
customer-generator. If the eligible customer-generator elects to
aggregate the electric load pursuant to this paragraph, the electric
utility shall use the aggregated load for the purpose of determining
whether an eligible customer-generator is a net consumer or a net
surplus customer-generator during a 12-month period.

(B) If an eligible customer-generator chooses to aggregate
pursuant to subparagraph (A), the eligible customer-generator shall
be permanently ineligible to receive net surplus electricity
compensation, and the electric utility shall retain any kilowatthours
in excess of the eligible customer-generator’s aggregated electrical
load generated during the 12-month period.

(C) If an eligible customer-generator with multiple meters elects
to aggregate the electrical load of those meters pursuant to
subparagraph (A), and different rate schedules are applicable to
service at any of those meters, the electricity generated by the
renewable electrical generation facility shall be allocated to each
of the meters in proportion to the electrical load served by those
meters. For example, if the eligible customer-generator receives
electric service through three meters, two meters being at an
agricultural rate that each provide service to 25 percent of the
customer’s total load, and a third meter, at a commercial rate, that
provides service to 50 percent of the customer’s total load, then
50 percent of the electrical generation of the eligible renewable
generation facility shall be allocated to the third meter that provides
service at the commercial rate and 25 percent of the generation
shall be allocated to each of the two meters providing service at
the agricultural rate. This proportionate allocation shall be
computed each billing period.

(D) This paragraph shall not become operative for an electrical
corporation unless the commission determines that allowing
eligible customer-generators to aggregate their load from multiple
meters will not result in an increase in the expected revenue
obligations of customers who are not eligible customer-generators.
The commission shall make this determination by September 30,
2013. In making this determination, the commission shall determine
if there are any public purpose or other noncommodity charges
that the eligible customer-generators would pay pursuant to the
net energy metering program as it exists prior to aggregation, that
the eligible customer-generator would not pay if permitted to
aggregate the electrical load of multiple meters pursuant to this
paragraph.

(E) A local publicly owned electric utility or electrical
cooperative shall only allow eligible customer-generators to
aggregate their load if the utility’s ratemaking authority determines
that allowing eligible customer-generators to aggregate their load
from multiple meters will not result in an increase in the expected
revenue obligations of customers that are not eligible
customer-generators. The ratemaking authority of a local publicly
owned electric utility or electrical cooperative shall make this
determination within 180 days of the first request made by an
eligible customer-generator to aggregate their load. In making the
determination, the ratemaking authority shall determine if there
are any public purpose or other noncommodity charges that the
eligible customer-generator would pay pursuant to the net energy
metering or co-energy metering program of the utility as it exists
prior to aggregation, that the eligible customer-generator would
not pay if permitted to aggregate the electrical load of multiple
meters pursuant to this paragraph. If the ratemaking authority
determines that load aggregation will not cause an incremental
rate impact on the utility’s customers that are not eligible
customer-generators, the local publicly owned electric utility or
electrical cooperative shall permit an eligible customer-generator
to elect to aggregate the electrical load of multiple meters pursuant
to this paragraph. The ratemaking authority may reconsider any
determination made pursuant to this subparagraph in a subsequent
public proceeding.

(F) For purposes of this paragraph, parcels that are divided by
a street, highway, or public thoroughfare are considered contiguous,
provided they are otherwise contiguous and under the same
ownership.

(G) An eligible customer-generator may only elect to aggregate
the electrical load of multiple meters if the renewable electrical
generation facility, or a combination of those facilities, has a total
generating capacity of not more than one megawatt.

(H) Notwithstanding subdivision (g), an eligible
customer-generator electing to aggregate the electrical load of
multiple meters pursuant to this subdivision shall remit service
charges for the cost of providing billing services to the electric
utility that provides service to the meters.

(5) (A) The ratemaking authority shall establish a net surplus
electricity compensation valuation to compensate the net surplus
customer-generator for the value of net surplus electricity generated
by the net surplus customer-generator. The commission shall
establish the valuation in a ratemaking proceeding. The ratemaking
authority for a local publicly owned electric utility shall establish
the valuation in a public proceeding. The net surplus electricity
compensation valuation shall be established so as to provide the
net surplus customer-generator just and reasonable compensation
for the value of net surplus electricity, while leaving other
ratepayers unaffected. The ratemaking authority shall determine
whether the compensation will include, where appropriate
justification exists, either or both of the following components:

(i) The value of the electricity itself.

(ii) The value of the renewable attributes of the electricity.

(B) In establishing the rate pursuant to subparagraph (A), the
ratemaking authority shall ensure that the rate does not result in a
shifting of costs between eligible customer-generators and other
bundled service customers.

(6) (A) Upon adoption of the net surplus electricity
compensation rate by the ratemaking authority, any renewable
energy credit, as defined in Section 399.12, for net surplus
electricity purchased by the electric utility shall belong to the
electric utility. Any renewable energy credit associated with
electricity generated by the eligible customer-generator that is
utilized by the eligible customer-generator shall remain the property
of the eligible customer-generator.

(B) Upon adoption of the net surplus electricity compensation
rate by the ratemaking authority, the net surplus electricity
purchased by the electric utility shall count toward the electric
utility’s renewables portfolio standard annual procurement targets
for the purposes of paragraph (1) of subdivision (b) of Section
399.15, or for a local publicly owned electric utility, the renewables
portfolio standard annual procurement targets established pursuant
to Section 399.30.

(7) The electric utility shall provide every eligible residential
or small commercial customer-generator with net electricity
consumption and net surplus electricity generation information
with each regular bill. That information shall include the current
monetary balance owed the electric utility for net electricity
consumed, or the net surplus electricity generated, since the last
12-month period ended. Notwithstanding this subdivision, an
electric utility shall permit that customer to pay monthly for net
energy consumed.

(8) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric utility, the electric utility shall reconcile the eligible
customer-generator’s consumption and production of electricity
during any part of a 12-month period following the last
reconciliation, according to the requirements set forth in this
subdivision, except that those requirements shall apply only to the
months since the most recent 12-month bill.

(9) If an electric service provider or electric utility providing
net energy metering to a residential or small commercial
customer-generator ceases providing that electric service to that
customer during any 12-month period, and the customer-generator
enters into a new net energy metering contract or tariff with a new
electric service provider or electric utility, the 12-month period,
with respect to that new electric service provider or electric utility,
shall commence on the date on which the new electric service
provider or electric utility first supplies electric service to the
customer-generator.

(i) Notwithstanding any other provisions of this section,
paragraphs (1), (2), and (3) shall apply to an eligible
customer-generator with a capacity of more than 10 kilowatts, but
not exceeding one megawatt, that receives electric service from a
local publicly owned electric utility that has elected to utilize a
co-energy metering program unless the local publicly owned
electric utility chooses to provide service for eligible
customer-generators with a capacity of more than 10 kilowatts in
accordance with subdivisions (g) and (h):

(1) The eligible customer-generator shall be required to utilize
a meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
time-of-use measurements of electricity flow, and the customer
shall take service on a time-of-use rate schedule. If the existing
meter of the eligible customer-generator is not a time-of-use meter
or is not capable of measuring total flow of electricity in both
directions, the eligible customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
both time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a governmental agency or an electric utility to reduce
its costs for purchasing and installing a time-of-use meter.

(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard
rate charged to the eligible customer-generator in accordance with
the rate structure to which the customer would be assigned if the
customer did not use a renewable electrical generation facility.
The generation of electricity provided to the local publicly owned
electric utility shall result in a credit to the eligible
customer-generator and shall be priced in accordance with the
generation component, established under the applicable structure
to which the customer would be assigned if the customer did not
use a renewable electrical generation facility.

(3) All costs and credits shall be shown on the eligible
customer-generator’s bill for each billing period. In any months
in which the eligible customer-generator has been a net consumer
of electricity calculated on the basis of value determined pursuant
to paragraph (2), the customer-generator shall owe to the local
publicly owned electric utility the balance of electricity costs and
credits during that billing period. In any billing period in which
the eligible customer-generator has been a net producer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the local publicly owned electric utility shall owe
to the eligible customer-generator the balance of electricity costs
and credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a kilowatthour
credit consistent with the provisions of any applicable contract or
tariff, including any differences attributable to the time of
generation of the electricity. At the end of each 12-month period,
the local publicly owned electric utility may reduce any net credit
due to the eligible customer-generator to zero.

(j) A renewable electrical generation facility used by an eligible
customer-generator shall meet all applicable safety and
performance standards established by the National Electrical Code,
the Institute of Electrical and Electronics Engineers, and accredited
testing laboratories, including Underwriters Laboratories
Incorporated and, where applicable, rules of the commission
regarding safety and reliability. A customer-generator whose
renewable electrical generation facility meets those standards and
rules shall not be required to install additional controls, perform
or pay for additional tests, or purchase additional liability
insurance.

(k) If the commission determines that there are cost or revenue
obligations for an electrical corporation that may not be recovered
from customer-generators acting pursuant to this section, those
obligations shall remain within the customer class from which any
shortfall occurred and shall not be shifted to any other customer
class. Net energy metering and co-energy metering customers shall
not be exempt from the public goods charges imposed pursuant to
Article 7 (commencing with Section 381), Article 8 (commencing
with Section 385), or Article 15 (commencing with Section 399)
of Chapter 2.3 of Part 1.

(l) A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources for all charges that would otherwise be imposed on the
customer by the commission to recover bond-related costs pursuant
to an agreement between the commission and the Department of
Water Resources pursuant to Section 80110 of the Water Code,
as well as the costs of the department equal to the share of the
department’s estimated net unavoidable power purchase contract
costs attributable to the customer. The commission shall
incorporate the determination into an existing proceeding before
the commission, and shall ensure that the charges are
nonbypassable. Until the commission has made a determination
regarding the nonbypassable charges, net energy metering,
co-energy metering, and wind energy co-metering shall continue
under the same rules, procedures, terms, and conditions as were
applicable on December 31, 2002.

(m) In implementing the requirements of subdivisions (k) and
(l), an eligible customer-generator shall not be required to replace
its existing meter except as set forth in paragraph (1) of subdivision
(c), nor shall the electric utility require additional measurement of
usage beyond that which is necessary for customers in the same
rate class as the eligible customer-generator.

(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, including net surplus electricity
compensation, co-energy metering, and wind energy co-metering
projects undertaken pursuant to this section as sustainable building
methods or distributive energy technologies for purposes of
evaluating low-income housing projects.

SEC. 41.  

Section 2851 of the Public Utilities Code is amended
to read:

2851.  

(a) In implementing the California Solar Initiative, the
commission shall do all of the following:

(1) (A) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the Energy Commission pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15 of the Public
Resources Code. The commission shall determine the eligibility
of a solar energy system, as defined in Section 25781 of the Public
Resources Code, to receive monetary incentives until the time the
Energy Commission establishes eligibility criteria pursuant to
Section 25782. Monetary incentives shall not be awarded for solar
energy systems that do not meet the eligibility criteria. The
incentive level authorized by the commission shall decline each
year following implementation of the California Solar Initiative,
at a rate of no less than an average of 7 percent per year, and,
except as provided in subparagraph (B), shall be zero as of
December 31, 2016. The commission shall adopt and publish a
schedule of declining incentive levels no less than 30 days in
advance of the first decline in incentive levels. The commission
may develop incentives based upon the output of electricity from
the system, provided those incentives are consistent with the
declining incentive levels of this paragraph and the incentives
apply to only the first megawatt of electricity generated by the
system.

(B) The incentive level for the installation of a solar energy
system pursuant to Section 2852 shall be zero as of December 31,
2021.

(2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than
30 kilowatts. Performance-based incentives shall decline at a rate
of no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:

(A) Apply performance-based incentives only to customer
classes designated by the commission.

(B) Design the performance-based incentives so that customers
may receive a higher level of incentives than under incentives
based on installed electrical capacity.

(C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.

(3) By January 1, 2008, the commission, in consultation with
the Energy Commission, shall require reasonable and cost-effective
energy efficiency improvements in existing buildings as a condition
of providing incentives for eligible solar energy systems, with
appropriate exemptions or limitations to accommodate the limited
financial resources of low-income residential housing.

(4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the
maximum incentive for ratepayers to install solar energy systems
so that the system’s peak electricity production coincides with
California’s peak electricity demands and that ensures that
ratepayers receive due value for their contribution to the purchase
of solar energy systems and customers with solar energy systems
continue to have an incentive to use electricity efficiently. In
developing the time-variant tariff, the commission may exclude
customers participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 739.9. Nothing in this paragraph authorizes
the commission to require time-variant pricing for ratepayers
without a solar energy system.

(b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).

(c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for
generation or storage of electricity or to offset natural gas usage.
Any program that allocates additional moneys to research,
development, and demonstration shall be developed in
collaboration with the Energy Commission to ensure there is no
duplication of efforts, and adopted by the commission through a
rulemaking or other appropriate public proceeding. Any grant
awarded by the commission for research, development, and
demonstration shall be approved by the full commission at a public
meeting. This subdivision does not prohibit the commission from
continuing to allocate moneys to research, development, and
demonstration pursuant to the self-generation incentive program
for distributed generation resources originally established pursuant
to Chapter 329 of the Statutes of 2000, as modified pursuant to
Section 379.6.

(2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to
make solar technologies cost effective.

(3) On or before June 30, 2009, and by June 30th of every year
thereafter, the commission shall submit to the Legislature an
assessment of the success of the California Solar Initiative program.
That assessment shall include the number of residential and
commercial sites that have installed solar thermal devices for which
an award was made pursuant to subdivision (b) and the dollar value
of the award, the number of residential and commercial sites that
have installed solar energy systems, the electrical generating
capacity of the installed solar energy systems, the cost of the
program, total electrical system benefits, including the effect on
electrical service rates, environmental benefits, how the program
affects the operation and reliability of the electrical grid, how the
program has affected peak demand for electricity, the progress
made toward reaching the goals of the program, whether the
program is on schedule to meet the program goals, and
recommendations for improving the program to meet its goals. If
the commission allocates additional moneys to research,
development, and demonstration that explores solar technologies
and other distributed generation technologies pursuant to paragraph
(1), the commission shall include in the assessment submitted to
the Legislature, a description of the program, a summary of each
award made or project funded pursuant to the program, including
the intended purposes to be achieved by the particular award or
project, and the results of each award or project.

(d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.

(2) Notwithstanding any other provision of law, any charge
imposed to fund the program adopted and implemented pursuant
to this section shall be imposed upon all customers not participating
in the California Alternate Rates for Energy (CARE) or family
electric rate assistance (FERA) programs, including those
residential customers subject to the rate limitation specified in
Section 739.9 for existing baseline quantities or usage up to 130
percent of existing baseline quantities of electricity.

(3) The costs of the program adopted and implemented pursuant
to this section shall not be recovered from customers participating
in the California Alternate Rates for Energy or CARE program
established pursuant to Section 739.1, except to the extent that
program costs are recovered out of the nonbypassable system
benefits charge authorized pursuant to Section 399.8.

(e) Except as provided in subdivision (f), in implementing the
California Solar Initiative, the commission shall ensure that the
total cost over the duration of the program does not exceed three
billion five hundred fifty million eight hundred thousand dollars
($3,550,800,000). Except as provided in subdivision (f), financial
components of the California Solar Initiative shall consist of the
following:

(1) Programs under the supervision of the commission funded
by charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas
and Electric Company. Except as provided in subdivision (f), the
total cost over the duration of these programs shall not exceed two
billion three hundred sixty-six million eight hundred thousand
dollars ($2,366,800,000) and includes moneys collected directly
into a tracking account for support of the California Solar Initiative.

(2) Programs adopted, implemented, and financed in the amount
of seven hundred eighty-four million dollars ($784,000,000), by
charges collected by local publicly owned electric utilities pursuant
to Section 2854. Nothing in this subdivision shall give the
commission power and jurisdiction with respect to a local publicly
owned electric utility or its customers.

(3) (A) Programs for the installation of solar energy systems
on new construction (New Solar Homes Partnership Program),
administered by the Energy Commission, and funded by charges
in the amount of four hundred million dollars ($400,000,000),
collected from customers of San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company. If the commission is notified by the Energy Commission
that funding available pursuant to Section 25751 of the Public
Resources Code for the New Solar Homes Partnership Program
and any other funding for the purposes of this paragraph have been
exhausted, the commission may require an electrical corporation
to continue administration of the program pursuant to the guidelines
established for the program by the Energy Commission, until the
funding limit authorized by this paragraph has been reached. The
commission may determine whether a third party, including the
Energy Commission, should administer the utility’s continuation
of the New Solar Homes Partnership Program. The commission,
in consultation with the Energy Commission, shall supervise the
administration of the continuation of the New Solar Homes
Partnership Program by an electrical corporation or third-party
administrator. After the exhaustion of funds, the Energy
Commission shall notify the Joint Legislative Budget Committee
30 days prior to the continuation of the program. This subparagraph
shall become inoperative on June 1, 2018.

(B) If the commission requires a continuation of the program
pursuant to subparagraph (A), any funding made available pursuant
to the continuation program shall be encumbered through the
issuance of rebate reservations by no later than June 1, 2018, and
disbursed by no later than December 31, 2021.

(4) The changes made to this subdivision by Chapter 39 of the
Statutes of 2012 do not authorize the levy of a charge or any
increase in the amount collected pursuant to any existing charge,
nor do the changes add to, or detract from, the commission’s
existing authority to levy or increase charges.

(f) Upon the expenditure or reservation in any electrical
corporation’s service territory of the amount specified in paragraph
(1) of subdivision (e) for low-income residential housing programs
pursuant to subdivision (c) of Section 2852, the commission shall
authorize the continued collection of the charge for the purposes
of Section 2852. The commission shall ensure that the total amount
collected pursuant to this subdivision does not exceed one hundred
eight million dollars ($108,000,000). Upon approval by the
commission, an electrical corporation may use amounts collected
pursuant to subdivision (e) for purposes of funding the general
market portion of the California Solar Initiative, that remain
unspent and unencumbered after December 31, 2016, to reduce
the electrical corporation’s portion of the total amount collected
pursuant to this subdivision.

SEC. 42.  

Section 13752 of the Water Code is amended to read:

13752.  

(a) Reports made in accordance with paragraph (1) of
subdivision (b) of Section 13751 shall be made available as
follows:

(1) To governmental agencies.

(2) To the public, upon request, in accordance with subdivision
(b).

(b) (1) The department may charge a fee for the provision of a
report pursuant to paragraph (2) of subdivision (a) that does not
exceed the reasonable costs to the department of providing the
report, including costs of promulgating any regulations to
implement this section.

(2) Notwithstanding subdivision (g) of Section 1798.24 of the
Civil Code, the disclosure of a report in accordance with paragraph
(2) of subdivision (a) in the possession of the department or another
governmental agency shall comply with the Information Practices
Act of 1977 (Chapter 1 (commencing with Section 1798) of Title
1.8 of Part 4 of Division 3 of the Civil Code).

SEC. 43.  

The inoperation or repeal of Sections 116565, 116570,
116580, and 116590 of the Health and Safety Code, as amended
by Sections 19, 21, 23, and 25, respectively, of this act does not
terminate any obligations or authorities with respect to the
collection of unpaid fees or reimbursements imposed pursuant to
those sections, as those sections read before July, 1, 2016, including
any interest or penalties that accrue before, on, or after that date,
associated with those unpaid fees or reimbursements.

SEC. 44.  

The Natural Resources Agency, in collaboration with
the relevant policy committees of the Senate and the Assembly,
shall, no later than October 1, 2015, convene a working group to
review and make recommendations regarding legislative and other
action that may be necessary to adjust the priorities for the
expenditure of moneys from the California Environmental License
Plate Fund, established pursuant to Section 21191 of the Public
Resources Code. The working group shall consider and recommend
policy and legislative action.

SEC. 45.  

(a) By January 30, 2016, and every six months
thereafter, the Department of Conservation and the State Water
Resources Control Board shall report to the fiscal and relevant
policy committees of the Legislature on the Underground Injection
Control Program. The report shall include, but is not limited to,
all of the following:

(1) The number and location of underground injection well and
permits and project approvals issued by the department, including
permits and projects that were approved but subsequently lapsed
without having commenced injection.

(2) The average length of time to obtain an underground
injection permit and project approval from date of application to
the date of issuance.

(3) The number and description of underground injection permit
violations identified.

(4) The number of enforcement actions taken by the department.

(5) The number of shut-in orders or requests to relinquish
permits and the status of those orders or requests.

(6) The number, classification, and location of underground
injection program staff and vacancies.

(7) Any state or federal legislation, administrative, or rulemaking
changes to the program.

(8) The status of the review of the underground injection control
projects and summary of the program’s assessment findings
completed during the reporting period, including any steps taken
to address identified deficiencies.

(9) Summary of significant milestones in their compliance
schedule agreed to with the United States Environmental Protection
Agency, as indicated in the March 9, 2015, letter to the division
and the state board from the United State Environmental Protection
Agency, including, but not limited to, regulatory updates,
evaluations of injection wells, and aquifer exemption applications.

(b) By January 30, 2016, and every six months thereafter, the
department shall report on progress addressing the program’s
assessment findings and shall deliver that report to the fiscal and
relevant policy committees of each house of the Legislature.

(c) By January 30, 2016, and every six months thereafter, the
state board shall post on its Internet Web site a report on the status
of the regulation of oil field produced water ponds within each
region. The report shall include the total number of ponds in each
region, the number of permitted and unpermitted ponds,
enforcement actions, and the status of permitting the unpermitted
ponds.

(d) This section shall become inoperative on March 1, 2019,
and, as of January 1, 2020, is repealed, unless a later enacted statute
that is enacted before January 1, 2020, deletes or extends the dates
on which it becomes inoperative and is repealed.

SEC. 46.  

(a) The Secretary for Environmental Protection and
the Secretary of the Natural Resources Agency shall appoint an
independent review panel, on or before January 1, 2018, to evaluate
the regulatory performance of the Division of Oil, Gas and
Geothermal Resources’ administration of the Underground
Injection Control Program and to make recommendations on how
to improve the effectiveness of the program, including resource
needs and statutory or regulatory changes, as well as program
reorganization, including transferring the program to the State
Water Resources Control Board.

(b) The review panel shall consist of participants with a diverse
range of backgrounds and expertise, including, but not limited to,
the oil and gas industry, public health, environmental and natural
resources, environmental justice, agriculture, and scientific and
academic research.

(c) The review panel shall take input from a broad range of
stakeholders with a diverse range of interests affected by state
policies governing oil and gas resources, public health,
environmental and natural resources, environmental justice, and
agriculture, as well as from the general public, in the preparation
of its evaluation and recommendations.

SEC. 47.  

Of the funds that have been reverted to the California
Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal
Protection Fund pursuant to Section 5096.633 of the Public
Resources Code, ten million dollars ($10,000,000) shall be
available, upon appropriation, for outdoor environmental education
and recreation programs consistent with Section 5096.620 of the
Public Resources Code.

SEC. 48.  

The sum of three hundred thousand dollars ($300,000)
is hereby appropriated from the California Tire Recycling
Management Fund to the California Environmental Protection
Agency to support the California-Mexico Border Relations Council.

SEC. 49.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

SEC. 50.  

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.