Amended in Assembly August 23, 2016

Amended in Assembly August 19, 2016

Amended in Assembly June 13, 2016

Amended in Assembly June 10, 2016

Amended in Assembly May 25, 2016

Senate BillNo. 831


Introduced by Committee on Budget and Fiscal Review

January 7, 2016


An actbegin delete to amend Section 51013.1 of, and to add Section 51015.6 to, the Government Code, to amend Section 44273 of the Health and Safety Code, to amend Section 1546.1 of the Penal Code, to amend Sections 3401 and 25751 of the Public Resources Code, and to amend Sections 388 and 399.20 of, to add Section 784.1 to, to add and repeal Section 388.2 of, and to repeal Section 2834 of, the Public Utilities Code, relating to energy,end deletebegin insert relating to water resources,end insert and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 831, as amended, Committee on Budget and Fiscal Review. begin deletePublic resources: energy. end deletebegin insertMonterey County Water Resources Agency: Lake Nacimiento and Lake San Antonio.end insert

begin insert

Existing law establishes the Monterey County Water Resources Agency as a flood control and water agency within the County of Monterey. Existing law authorizes the agency to award a design-build contract for the combined design and construction of a project to connect Lake San Antonio, located in the County of Monterey, and Lake Nacimiento, located in the County of San Luis Obispo, with an underground tunnel or pipeline for the purpose of maximizing water storage, supply, and groundwater recharge.

end insert
begin insert

This bill would appropriate $10,000,000 from the General Fund to the Department of Water Resources for the purposes of a water conveyance tunnel between Lake Nacimiento and Lake San Antonio and spillway modifications at Lake San Antonio to increase storage by approximately 60,000 acre-feet. The bill would require the department to grant the $10,000,000 appropriated for the purposes of the water conveyance tunnel and spillway modifications to the Monterey County Water Resources Agency for the purposes of constructing the water conveyance tunnel and spillway modifications, as specified.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Under existing law, a violation of the Public Utilities Act is a crime.

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Because the above provisions would be codified in the act, a violation of which would be a crime, this bill would impose a state-mandated local program.

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

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

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

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

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

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

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

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

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

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

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(8) The bill would incorporate additional changes to Section 399.20 of the Public Utilities Code, proposed by AB 1923, to be operative only if AB 1923 and this bill are both chaptered and become effective on or before January 1, 2017, and this bill is chaptered last.

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(9) The bill would incorporate additional changes to Section 1546.1 of the Penal Code, proposed by AB 1924, to be operative only if AB 1924 and this bill are both chaptered and become effective on or before January 1, 2017, and this bill is chaptered last.

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(10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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

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

end delete

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

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

P8    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

Ten million dollars ($10,000,000) from the
2General Fund is hereby appropriated to the Department of Water
3Resources for the purposes of a water conveyance tunnel between
4Lake Nacimiento and Lake San Antonio and spillway modifications
P9    1at Lake San Antonio to increase storage by approximately 60,000
2acre-feet.

end insert
3begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The Department of Water Resources shall provide a
4grant of the ten million dollars ($10,000,000) appropriated for
5the purposes of a water conveyance tunnel between Lake
6Nacimiento and Lake San Antonio and spillway modifications at
7Lake San Antonio to the Monterey County Water Resources Agency
8for the purposes of constructing, in accordance with the
9design-build process authorized by Section 11.1 of the Monterey
10County Water Resources Agency Act (Chapter 1159 of the Statutes
11of 1990, as amended by Chapter 865 of the Statutes of 2014), the
12water conveyance tunnel and spillway modifications in order to
13maximize water storage, water supply, flood management, and
14groundwater recharge at Lake Nacimiento and Lake San Antonio,
15within the Salinas River groundwater basin, and the Salinas Valley.

end insert
16begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
17to the Budget Bill within the meaning of subdivision (e) of Section
1812 of Article IV of the California Constitution, has been identified
19as related to the budget in the Budget Bill, and shall take effect
20immediately.

end insert
begin delete
21

SECTION 1.  

Section 51013.1 of the Government Code is
22amended to read:

23

51013.1.  

(a) By January 1, 2018, any new or replacement
24pipeline near environmentally and ecologically sensitive areas in
25the coastal zone shall use best available technology, including, but
26not limited to, the installation of leak detection technology,
27automatic shutoff systems, or remote controlled sectionalized block
28valves, or any combination of these technologies, based on a risk
29analysis conducted by the operator, to reduce the amount of oil
30released in an oil spill to protect state waters and wildlife.

31(b) (1) By July 1, 2018, an operator of an existing pipeline near
32environmentally and ecologically sensitive areas in the coastal
33zone shall submit a plan to retrofit, by January 1, 2020, existing
34pipelines near environmentally and ecologically sensitive areas in
35the coastal zone with the best available technology, including, but
36not limited to, installation of leak detection technologies, automatic
37shutoff systems, or remote controlled sectionalized block valves,
38or any combination of these technologies, based on a risk analysis
39conducted by the operator to reduce the amount of oil released in
40an oil spill to protect state waters and wildlife.

P10   1(2) An operator may request confidential treatment of
2information submitted in the plan required by paragraph (1) or
3contained in any documents associated with the risk analysis
4described in this section, including, but not limited to, information
5regarding the proposed location of automatic shutoff valves or
6remote controlled sectionalized block valves.

7(c) The State Fire Marshal shall adopt regulations pursuant to
8this section by July 1, 2017. The regulations shall include, but not
9be limited to, all of the following:

10(1) A definition of automatic shutoff systems.

11(2) A process to assess the adequacy of the operator’s risk
12analysis.

13(3) A process by which an operator may request confidential
14treatment of information submitted in the plan required by
15paragraph (1) of subdivision (b) or contained in any documents
16associated with the risk analysis described in this section.

17(4) A determination of how near to an environmentally and
18ecologically sensitive area a pipeline must be to be subject to the
19requirements of this section based on the likelihood of the pipeline
20impacting those areas.

21(d) An operator of a pipeline near environmentally and
22 ecologically sensitive areas in the coastal zone shall notify the
23Office of the State Fire Marshal of any new construction or retrofit
24of pipeline in these waters.

25(e) For purposes of implementing this section, the State Fire
26Marshal shall consult with the Office of Spill Prevention and
27Response about the potential impacts to state water and wildlife.

28(f) For purposes of this section, “environmentally and
29ecologically sensitive areas” is the same term as described in
30subdivision (d) of Section 8574.7.

31(g) (1) For purposes of this section, “best available technology”
32means technology that provides the greatest degree of protection
33by limiting the quantity of release in the event of a spill, taking
34into consideration whether the processes are currently in use and
35could be purchased anywhere in the world.

36(2) The State Fire Marshal shall determine what is the best
37available technology and shall consider the effectiveness and
38engineering feasibility of the technology when making this
39determination.

P11   1(h) For the purposes of this section, “oil” means hazardous liquid
2as defined in Section 195.2 of Title 49 of the Code of Federal
3Regulations.

4

SEC. 2.  

Section 51015.6 is added to the Government Code, to
5read:

6

51015.6.  

(a) On or before January 31, 2017, and on or before
7January 31 annually thereafter, the State Fire Marshal shall submit
8a report to the Legislature containing information, including, but
9not limited to, all of the following:

10(1) The number of annual inspections conducted pursuant to
11Section 51015.1.

12(2) The status of the installation of automatic shutoff systems
13pursuant to Section 51013.1, including a summary of the types of
14shutoff systems installed, and the number of miles of pipeline
15covered by an automatic shutoff system.

16(3) The status of Line 901 and Line 903 in the County of Santa
17Barbara.

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

20(2) Pursuant to Section 10231.5, this section is inoperative on
21January 31, 2021.

22

SEC. 3.  

Section 44273 of the Health and Safety Code is
23amended to read:

24

44273.  

(a) The Alternative and Renewable Fuel and Vehicle
25Technology Fund is hereby created in the State Treasury, to be
26administered by the commission. The moneys in the fund, upon
27appropriation by the Legislature, shall be expended by the
28commission to implement the Alternative and Renewable Fuel and
29Vehicle Technology Program in accordance with this chapter.

30(b) Beginning with the integrated energy policy report adopted
31in 2011, and in the subsequent reports adopted thereafter, pursuant
32to Section 25302 of the Public Resources Code, the commission
33shall include an evaluation of research, development, and
34deployment efforts funded by this chapter. The evaluation shall
35include all of the following:

36(1) A list of projects funded by the Alternative and Renewable
37Fuel and Vehicle Technology Fund.

38(2) The expected benefits of the projects in terms of air quality,
39petroleum use reduction, greenhouse gas emissions reduction,
P12   1technology advancement, benefit-cost assessment, and progress
2towards achieving these benefits.

3(3) The overall contribution of the funded projects toward
4promoting a transition to a diverse portfolio of clean, alternative
5transportation fuels and reduced petroleum dependency in
6California.

7(4) Key obstacles and challenges to meeting these goals
8identified through funded projects.

9(5) Recommendations for future actions.

10

SEC. 4.  

Section 1546.1 of the Penal Code is amended to read:

11

1546.1.  

(a) Except as provided in this section, a government
12entity shall not do any of the following:

13(1) Compel the production of or access to electronic
14communication information from a service provider.

15(2) Compel the production of or access to electronic device
16information from any person or entity other than the authorized
17possessor of the device.

18(3) Access electronic device information by means of physical
19interaction or electronic communication with the electronic device.
20This section does not prohibit the intended recipient of an electronic
21communication from voluntarily disclosing electronic
22communication information concerning that communication to a
23government entity.

24(b) A government entity may compel the production of or access
25to electronic communication information from a service provider,
26or compel the production of or access to electronic device
27information from any person or entity other than the authorized
28possessor of the device only under the following circumstances:

29(1) Pursuant to a warrant issued pursuant to Chapter 3
30(commencing with Section 1523) and subject to subdivision (d).

31(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
32(commencing with Section 629.50) of Title 15 of Part 1.

33(3) Pursuant to an order for electronic reader records issued
34pursuant to Section 1798.90 of the Civil Code.

35(4) Pursuant to a subpoena issued pursuant to existing state law,
36provided that the information is not sought for the purpose of
37investigating or prosecuting a criminal offense, and compelling
38the production of or access to the information via the subpoena is
39not otherwise prohibited by state or federal law. Nothing in this
P13   1paragraph shall be construed to expand any authority under state
2law to compel the production of or access to electronic information.

3(c) A government entity may access electronic device
4information by means of physical interaction or electronic
5communication with the device only as follows:

6(1) Pursuant to a warrant issued pursuant to Chapter 3
7(commencing with Section 1523) and subject to subdivision (d).

8(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
9(commencing with Section 629.50) of Title 15 of Part 1.

10(3) With the specific consent of the authorized possessor of the
11device.

12(4) With the specific consent of the owner of the device, only
13when the device has been reported as lost or stolen.

14(5) If the government entity, in good faith, believes that an
15emergency involving danger of death or serious physical injury to
16any person requires access to the electronic device information.

17(6) If the government entity, in good faith, believes the device
18to be lost, stolen, or abandoned, provided that the entity shall only
19access electronic device information in order to attempt to identify,
20verify, or contact the owner or authorized possessor of the device.

21(7) Except where prohibited by state or federal law, if the device
22is seized from an inmate’s possession or found in an area of a
23correctional facility under the jurisdiction of the Department of
24Corrections and Rehabilitation where inmates have access and the
25device is not in the possession of an individual and the device is
26not known or believed to be the possession of an authorized visitor.
27Nothing in this paragraph shall be construed to supersede or
28override Section 4576.

29(d) Any warrant for electronic information shall comply with
30the following:

31(1) The warrant shall describe with particularity the information
32to be seized by specifying the time periods covered and, as
33appropriate and reasonable, the target individuals or accounts, the
34applications or services covered, and the types of information
35sought.

36(2) The warrant shall require that any information obtained
37through the execution of the warrant that is unrelated to the
38objective of the warrant shall be sealed and not subject to further
39review, use, or disclosure without a court order. A court shall issue
40such an order upon a finding that there is probable cause to believe
P14   1that the information is relevant to an active investigation, or review,
2use, or disclosure is required by state or federal law.

3(3) The warrant shall comply with all other provisions of
4California and federal law, including any provisions prohibiting,
5limiting, or imposing additional requirements on the use of search
6warrants. If directed to a service provider, the warrant shall be
7accompanied by an order requiring the service provider to verify
8the authenticity of electronic information that it produces by
9providing an affidavit that complies with the requirements set forth
10in Section 1561 of the Evidence Code. Admission of that
11information into evidence shall be subject to Section 1562 of the
12Evidence Code.

13(e) When issuing any warrant or order for electronic information,
14or upon the petition from the target or recipient of the warrant or
15order, a court may, at its discretion, do any or all of the following:

16(1) Appoint a special master, as described in subdivision (d) of
17Section 1524, charged with ensuring that only information
18necessary to achieve the objective of the warrant or order is
19produced or accessed.

20(2) Require that any information obtained through the execution
21of the warrant or order that is unrelated to the objective of the
22warrant be destroyed as soon as feasible after the termination of
23the current investigation and any related investigations or
24proceedings.

25(f) A service provider may voluntarily disclose electronic
26communication information or subscriber information when that
27disclosure is not otherwise prohibited by state or federal law.

28(g) If a government entity receives electronic communication
29information voluntarily provided pursuant to subdivision (f), it
30shall destroy that information within 90 days unless one or more
31of the following circumstances apply:

32(1) The entity has or obtains the specific consent of the sender
33or recipient of the electronic communications about which
34information was disclosed.

35(2) The entity obtains a court order authorizing the retention of
36the information. A court shall issue a retention order upon a finding
37that the conditions justifying the initial voluntary disclosure persist,
38in which case the court shall authorize the retention of the
39information only for so long as those conditions persist, or there
P15   1is probable cause to believe that the information constitutes
2evidence that a crime has been committed.

3(3) The entity reasonably believes that the information relates
4to child pornography and the information is retained as part of a
5multiagency database used in the investigation of child
6pornography and related crimes.

7(h) If a government entity obtains electronic information
8pursuant to an emergency involving danger of death or serious
9physical injury to a person, that requires access to the electronic
10information without delay, the entity shall, within three days after
11obtaining the electronic information, file with the appropriate court
12an application for a warrant or order authorizing obtaining the
13electronic information or a motion seeking approval of the
14emergency disclosures that shall set forth the facts giving rise to
15the emergency, and if applicable, a request supported by a sworn
16affidavit for an order delaying notification under paragraph (1) of
17subdivision (b) of Section 1546.2. The court shall promptly rule
18on the application or motion and shall order the immediate
19destruction of all information obtained, and immediate notification
20pursuant to subdivision (a) of Section 1546.2 if such notice has
21not already been given, upon a finding that the facts did not give
22rise to an emergency or upon rejecting the warrant or order
23application on any other ground.

24(i) This section does not limit the authority of a government
25entity to use an administrative, grand jury, trial, or civil discovery
26subpoena to do any of the following:

27(1) Require an originator, addressee, or intended recipient of
28an electronic communication to disclose any electronic
29communication information associated with that communication.

30(2) Require an entity that provides electronic communications
31services to its officers, directors, employees, or agents for the
32purpose of carrying out their duties, to disclose electronic
33communication information associated with an electronic
34communication to or from an officer, director, employee, or agent
35of the entity.

36(3) Require a service provider to provide subscriber information.

37(j) This section does not limit the authority of the Public Utilities
38Commission or the State Energy Resources Conservation and
39Development Commission to obtain energy or water supply and
40consumption information pursuant to the powers granted to them
P16   1 under the Public Utilities Code or the Public Resources Code and
2other applicable state laws.

3

SEC. 4.5.  

Section 1546.1 of the Penal Code is amended to read:

4

1546.1.  

(a) Except as provided in this section, a government
5entity shall not do any of the following:

6(1) Compel the production of or access to electronic
7communication information from a service provider.

8(2) Compel the production of or access to electronic device
9information from any person or entity other than the authorized
10possessor of the device.

11(3) Access electronic device information by means of physical
12interaction or electronic communication with the electronic device.
13This section does not prohibit the intended recipient of an electronic
14communication from voluntarily disclosing electronic
15communication information concerning that communication to a
16government entity.

17(b) A government entity may compel the production of or access
18to electronic communication information from a service provider,
19or compel the production of or access to electronic device
20information from any person or entity other than the authorized
21possessor of the device only under the following circumstances:

22(1) Pursuant to a warrant issued pursuant to Chapter 3
23(commencing with Section 1523) and subject to subdivision (d).

24(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
25(commencing with Section 629.50) of Title 15 of Part 1.

26(3) Pursuant to an order for electronic reader records issued
27pursuant to Section 1798.90 of the Civil Code.

28(4) Pursuant to a subpoena issued pursuant to existing state law,
29provided that the information is not sought for the purpose of
30investigating or prosecuting a criminal offense, and compelling
31the production of or access to the information via the subpoena is
32not otherwise prohibited by state or federal law. Nothing in this
33paragraph shall be construed to expand any authority under state
34law to compel the production of or access to electronic information.

35(5) Pursuant to an order for a pen register or trap and trace
36device, or both, issued pursuant to Chapter 1.5 (commencing with
37Section 630) of Title 15 of Part 1.

38(c) A government entity may access electronic device
39information by means of physical interaction or electronic
40communication with the device only as follows:

P17   1(1) Pursuant to a warrant issued pursuant to Chapter 3
2(commencing with Section 1523) and subject to subdivision (d).

3(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
4(commencing with Section 629.50) of Title 15 of Part 1.

5(3) With the specific consent of the authorized possessor of the
6device.

7(4) With the specific consent of the owner of the device, only
8when the device has been reported as lost or stolen.

9(5) If the government entity, in good faith, believes that an
10emergency involving danger of death or serious physical injury to
11any person requires access to the electronic device information.

12(6) If the government entity, in good faith, believes the device
13to be lost, stolen, or abandoned, provided that the entity shall only
14access electronic device information in order to attempt to identify,
15verify, or contact the owner or authorized possessor of the device.

16(7) Except where prohibited by state or federal law, if the device
17is seized from an inmate’s possession or found in an area of a
18correctional facility under the jurisdiction of the Department of
19Corrections and Rehabilitation where inmates have access and the
20device is not in the possession of an individual and the device is
21not known or believed to be the possession of an authorized visitor.
22Nothing in this paragraph shall be construed to supersede or
23override Section 4576.

24(8) Pursuant to an order for a pen register or trap and trace
25device, or both, issued pursuant to Chapter 1.5 (commencing with
26Section 630) of Title 15 of Part 1.

27(d) Any warrant for electronic information shall comply with
28the following:

29(1) The warrant shall describe with particularity the information
30to be seized by specifying the time periods covered and, as
31appropriate and reasonable, the target individuals or accounts, the
32applications or services covered, and the types of information
33sought.

34(2) The warrant shall require that any information obtained
35through the execution of the warrant that is unrelated to the
36objective of the warrant shall be sealed and not subject to further
37review, use, or disclosure without a court order. A court shall issue
38such an order upon a finding that there is probable cause to believe
39that the information is relevant to an active investigation, or review,
40use, or disclosure is required by state or federal law.

P18   1(3) The warrant shall comply with all other provisions of
2California and federal law, including any provisions prohibiting,
3limiting, or imposing additional requirements on the use of search
4warrants. If directed to a service provider, the warrant shall be
5accompanied by an order requiring the service provider to verify
6the authenticity of electronic information that it produces by
7providing an affidavit that complies with the requirements set forth
8in Section 1561 of the Evidence Code. Admission of that
9information into evidence shall be subject to Section 1562 of the
10Evidence Code.

11(e) When issuing any warrant or order for electronic information,
12or upon the petition from the target or recipient of the warrant or
13order, a court may, at its discretion, do any or all of the following:

14(1) Appoint a special master, as described in subdivision (d) of
15Section 1524, charged with ensuring that only information
16necessary to achieve the objective of the warrant or order is
17produced or accessed.

18(2) Require that any information obtained through the execution
19of the warrant or order that is unrelated to the objective of the
20warrant be destroyed as soon as feasible after the termination of
21the current investigation and any related investigations or
22proceedings.

23(f) A service provider may voluntarily disclose electronic
24communication information or subscriber information when that
25disclosure is not otherwise prohibited by state or federal law.

26(g) If a government entity receives electronic communication
27information voluntarily provided pursuant to subdivision (f), it
28shall destroy that information within 90 days unless one or more
29of the following circumstances apply:

30(1) The entity has or obtains the specific consent of the sender
31or recipient of the electronic communications about which
32information was disclosed.

33(2) The entity obtains a court order authorizing the retention of
34the information. A court shall issue a retention order upon a finding
35that the conditions justifying the initial voluntary disclosure persist,
36in which case the court shall authorize the retention of the
37information only for so long as those conditions persist, or there
38is probable cause to believe that the information constitutes
39evidence that a crime has been committed.

P19   1(3) The entity reasonably believes that the information relates
2to child pornography and the information is retained as part of a
3multiagency database used in the investigation of child
4pornography and related crimes.

5(h) If a government entity obtains electronic information
6pursuant to an emergency involving danger of death or serious
7physical injury to a person, that requires access to the electronic
8information without delay, the entity shall, within three days after
9obtaining the electronic information, file with the appropriate court
10an application for a warrant or order authorizing obtaining the
11electronic information or a motion seeking approval of the
12emergency disclosures that shall set forth the facts giving rise to
13the emergency, and if applicable, a request supported by a sworn
14affidavit for an order delaying notification under paragraph (1) of
15subdivision (b) of Section 1546.2. The court shall promptly rule
16on the application or motion and shall order the immediate
17destruction of all information obtained, and immediate notification
18pursuant to subdivision (a) of Section 1546.2 if such notice has
19not already been given, upon a finding that the facts did not give
20rise to an emergency or upon rejecting the warrant or order
21application on any other ground.

22(i) This section does not limit the authority of a government
23entity to use an administrative, grand jury, trial, or civil discovery
24subpoena to do any of the following:

25(1) Require an originator, addressee, or intended recipient of
26an electronic communication to disclose any electronic
27communication information associated with that communication.

28(2) Require an entity that provides electronic communications
29services to its officers, directors, employees, or agents for the
30purpose of carrying out their duties, to disclose electronic
31communication information associated with an electronic
32communication to or from an officer, director, employee, or agent
33of the entity.

34(3) Require a service provider to provide subscriber information.

35(j) This section does not limit the authority of the Public Utilities
36Commission or the State Energy Resources Conservation and
37Development Commission to obtain energy or water supply and
38 consumption information pursuant to the powers granted to them
39under the Public Utilities Code or the Public Resources Code and
40other applicable state laws.

P20   1

SEC. 5.  

Section 3401 of the Public Resources Code is amended
2to read:

3

3401.  

(a) The proceeds of charges levied, assessed, and
4collected pursuant to this article upon the properties of every person
5operating or owning an interest in the production of a well shall
6be used exclusively for the support and maintenance of the
7department charged with the supervision of oil and gas operations,
8for the State Water Resources Control Board and the regional water
9quality control boards for their activities related to oil and gas
10operations that may affect water resources, and for the support of
11the State Air Resources Board and the Office of Environmental
12Health Hazard Assessment for their activities related to oil and
13gas operations that may affect air quality, public health, or public
14safety.

15(b) Notwithstanding subdivision (a), the proceeds of charges
16levied, assessed, and collected pursuant to this article upon the
17properties of every person operating or owning an interest in the
18production of a well undergoing a well stimulation treatment, may
19be used by public entities, subject to appropriation by the
20Legislature, for all costs associated with both of the following:

21(1) Well stimulation treatments, including rulemaking and
22scientific studies required to evaluate the treatment, inspections,
23any air and water quality sampling, monitoring, and testing
24performed by public entities.

25(2) The costs of the State Water Resources Control Board and
26the regional water quality control boards in carrying out their
27responsibilities pursuant to Section 3160 and Section 10783 of the
28Water Code.

29

SEC. 6.  

Section 25751 of the Public Resources Code is
30amended to read:

31

25751.  

(a) The Renewable Resource Trust Fund is hereby
32created in the State Treasury.

33(b) The Emerging Renewable Resources Account is hereby
34established within the Renewable Resources Trust Fund.
35Notwithstanding Section 13340 of the Government Code, the
36moneys in the account are hereby continuously appropriated to
37the commission without regard to fiscal years for the following
38purposes:

39(1) To close out the award of incentives for emerging
40technologies in accordance with former Section 25744, as this law
P21   1existed prior to the enactment of the Budget Act of 2012, for which
2applications had been approved before the enactment of the Budget
3Act of 2012.

4(2) To close out consumer education activities in accordance
5with former Section 25746, as this law existed prior to the
6enactment of the Budget Act of 2012.

7(3) To provide funding for the New Solar Homes Partnership
8pursuant to paragraph (3) of subdivision (e) of Section 2851 of the
9Public Utilities Code.

10(c) The Controller shall provide to the commission funds
11pursuant to the continuous appropriation in, and for purposes
12specified in, subdivision (b).

13(d) The Controller shall provide to the commission moneys
14from the fund sufficient to satisfy all contract and grant awards
15that were made by the commission pursuant to former Sections
1625744 and 25746, and Chapter 8.8 (commencing with Section
1725780), as these laws existed prior to the enactment of the Budget
18 Act of 2012.

19(e) If the Public Utilities Commission determines that the
20commission should be the third-party administrator for the New
21Solar Homes Partnership Program pursuant to subparagraph (A)
22of paragraph (3) of subdivision (e) of Section 2851 of the Public
23Utilities Code, any moneys made available to fund the New Solar
24Homes Partnership Program shall be deposited into the Emerging
25Renewable Resources Account of the Renewable Resource Trust
26Fund and used for this purpose.

27

SEC. 7.  

Section 388 of the Public Utilities Code is amended
28to read:

29

388.  

(a) Notwithstanding any other law, a state agency may
30enter into an energy savings contract with a qualified energy service
31company for the purchase or exchange of thermal or electrical
32energy or water, or to acquire energy efficiency or water
33conservation services, or both energy efficiency and water
34conservation services, for a term not exceeding 35 years, at rates
35and upon terms approved by the agency.

36(b) The Department of General Services or any other state or
37local agency intending to enter into an energy savings contract or
38a contract for an energy retrofit project may establish a pool of
39qualified energy service companies based on qualifications,
40experience, pricing, or other pertinent factors. Energy service
P22   1contracts for individual projects undertaken by any state or local
2agency may be awarded through a competitive selection process
3to individuals or firms identified in the pool. The pool of qualified
4energy service companies and contractors shall be reestablished
5at least every two years or shall expire.

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

7(1) (A) “Energy retrofit project” means a project for which the
8state or local agency works with a qualified energy service
9company to identify, develop, design, and implement energy
10conservation measures in existing facilities to reduce energy or
11water use or make more efficient use of energy or water.

12(B) “Energy retrofit project” does not include the erection or
13installation of a power generation system, a power purchase
14agreement, or a project utilizing a site license or lease agreement.

15(2) “Energy savings” means a measured and verified reduction
16in fuel, energy, or water consumption when compared to an
17established baseline of consumption.

18(3) “Qualified energy service company” means a company with
19a demonstrated ability to provide or arrange for building or facility
20energy auditors, selection and design of appropriate energy savings
21measures, project financing, implementation of these measures,
22and maintenance and ongoing measurement of these measures as
23to ensure and verify energy savings.

24

SEC. 8.  

Section 388.2 is added to the Public Utilities Code, to
25read:

26

388.2.  

(a) For purposes of this section, the following
27definitions apply:

28(1) “Apprenticeable occupation” means an occupation for which
29the chief has approved an apprenticeship program pursuant to
30Section 3075 of the Labor Code before January 1, 2014.

31(2) “Chief” means the Chief of the Division of Apprenticeship
32Standards of the Department of Industrial Relations.

33(3) “Department” means the Department of General Services.

34(4) (A) “Energy retrofit project” means a project for which the
35state works with a qualified energy service company to identify,
36develop, design, and implement energy conservation measures in
37existing facilities to reduce energy or water use or make more
38efficient use of energy or water.

P23   1(B) “Energy retrofit project” does not include the erection or
2installation of a power generation system, a power purchase
3agreement, or a project utilizing a site license or lease agreement.

4(5) “Energy savings” means a measured and verified reduction
5in fuel, energy, or water consumption when compared to an
6established baseline of consumption.

7(6) “Enforceable commitment” means an enforceable agreement
8with the department or state agency that the entity and its
9subcontractors at every tier will comply with this section.

10(7) (A) “Qualified energy service company” means a company
11with a demonstrated ability to provide or arrange for building or
12facility energy auditors, selection and design of appropriate energy
13savings measures, project financing, implementation of these
14measures, and maintenance and ongoing measurement of these
15measures as to ensure and verify energy savings.

16(B) An entity is not a qualified energy service company unless
17the entity has provided to the agency an enforceable commitment
18that the entity and its subcontractors at every tier will use a skilled
19and trained workforce to perform all work on the project or contract
20that falls within an apprenticeable occupation in the building and
21construction trades.

22(8) “Skilled and trained workforce” means a workforce that
23meets all of the following conditions:

24(A) All workers performing work in an apprenticeable
25occupation in the building and construction trades are either skilled
26journeypersons or apprentices in an apprenticeship program
27approved by the chief.

28(B) (i) Except as provided in clause (ii), at least 60 percent of
29the skilled journeypersons employed to perform work on a contract
30or project by every contractor and each of its subcontractors at
31every tier are graduates of an apprenticeship program that was
32either approved by the chief pursuant to Section 3075 of the Labor
33Code, or an apprenticeship program located outside the state that
34is approved pursuant to the apprenticeship regulations adopted by
35the United States Secretary of Labor, for the applicable occupation.

36(ii) For an apprenticeable occupation in which no apprenticeship
37program had been approved by the chief before January 1, 1995,
38up to one-half of the requirement in clause (i) may be satisfied by
39skilled journeypersons who commenced working in an
40apprenticeable occupation before the chief’s approval of an
P24   1apprenticeship program in the county in which the project is
2located.

3(iii) The requirements of this subparagraph are satisfied if, in a
4particular calendar month, either of the following is true:

5(I) The percentage of the skilled journeypersons employed by
6the contractor or subcontractor to perform work on the contract or
7project is at least equal to 60 percent.

8(II) For the hours of work performed by skilled journeypersons
9employed by the contractor or subcontractor on the contract or
10project, the percentage of hours performed by skilled
11journeypersons is at least equal to 60 percent.

12(iv) This subparagraph does not apply to a contractor or
13subcontractor if, during the calendar month, the contractor or
14subcontractor employs skilled journeypersons to perform fewer
15than 10 hours of work on the contract or project.

16(v) This subparagraph does not apply to a subcontractor if both
17of the following are true:

18(I) The subcontractor is not a listed subcontractor in the
19investment grade audit or a substitute for a listed subcontractor.

20(II) The subcontract does not exceed one-half of 1 percent of
21the price of the prime contract.

22(9) “Skilled journeyperson” means a worker who is being paid
23at least the prevailing rate or per diem wages published by the
24Department of Industrial Relations for the occupation and
25geographic area and who either:

26(A) Graduated from either an apprenticeship program that was
27approved by the chief pursuant to Section 3075 of the Labor Code,
28or an apprenticeship program located outside the state that is
29approved pursuant to the apprenticeship regulations adopted by
30the United States Secretary of Labor, for the applicable occupation.

31(B) Has at least as many hours of on-the-job training experience
32in the applicable occupation as would be required to graduate from
33an apprenticeship program for the applicable occupation that is
34approved by the chief.

35(b) (1) The department or any other state agency intending to
36enter into an energy savings contract for an energy retrofit project
37may establish one or more pools of qualified energy service
38companies based on qualification, experience, pricing, or other
39pertinent factors. The department or state agency may select a
P25   1qualified energy service company identified in the pool for a
2contract for a specific energy retrofit project on a rotational basis.

3(2) The department or state agency has the exclusive authority
4to reject the plan or proposal of a qualified energy service company
5selected for an energy retrofit project pursuant to paragraph (1)
6and may continue the selection process until a satisfactory proposal
7is identified.

8(c) (1) A qualified energy service company working on an
9energy retrofit project shall submit to the department or state
10agency, as appropriate, on a monthly basis, a report demonstrating
11compliance with this section.

12(2) If the qualified energy service company fails to submit the
13monthly report or submits a report that is incomplete, the
14department or state agency, as appropriate, shall withhold further
15payments until a complete report is submitted.

16(3) The monthly report is a public record under the California
17Public Records Act (Chapter 3.5 (commencing with Section 6250)
18of Division 7 of Title 1 of the Government Code) and shall be
19available for public inspection.

20(d) Prior to performing an investment grade audit, the
21department or other state agency shall provide a public notification
22that includes the project location, assigned energy service company,
23and the appropriate contact information on the department’s
24Internet Web site.

25(e) Subparagraph (B) of paragraph (7) of subdivision (a) and
26subdivision (c) do not apply if either of the following applies:

27(1) The department or state agency, as appropriate, has entered
28into a project labor agreement, as defined in paragraph (1) of
29subdivision (b) of Section 2500 of the Public Contract Code, that
30will bind all contractors and subcontractors performing work on
31the project or contract and the entity agrees to be bound by that
32project labor agreement.

33(2) The entity has entered into a project labor agreement, as
34defined in paragraph (1) of subdivision (b) of Section 2500 of the
35Public Contract Code, that will bind the entity and all contractors
36and subcontractors at every tier performing the project or contract.

37(f) Subparagraph (B) of paragraph (7) of subdivision (a) and
38subdivision (c) do not apply to work performed by the California
39Conservation Corps that is nontrades and nonconstruction related.

P26   1(g) This section is not intended to waive other terms and
2conditions applicable to a state contract for an energy retrofit
3project.

4(h) This section shall remain in effect only until January 1, 2020,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2020, deletes or extends that date.

7

SEC. 9.  

Section 399.20 of the Public Utilities Code is amended
8to read:

9

399.20.  

(a) It is the policy of this state and the intent of the
10Legislature to encourage electrical generation from eligible
11renewable energy resources.

12(b) As used in this section, “electric generation facility” means
13an electric generation facility located within the service territory
14of, and developed to sell electricity to, an electrical corporation
15that meets all of the following criteria:

16(1) Has an effective capacity of not more than three megawatts.

17(2) Is interconnected and operates in parallel with the electrical
18transmission and distribution grid.

19(3) Is strategically located and interconnected to the electrical
20transmission and distribution grid in a manner that optimizes the
21deliverability of electricity generated at the facility to load centers.

22(4) Is an eligible renewable energy resource.

23(c) Every electrical corporation shall file with the commission
24a standard tariff for electricity purchased from an electric
25generation facility. The commission may modify or adjust the
26requirements of this section for any electrical corporation with less
27than 100,000 service connections, as individual circumstances
28merit.

29(d) (1) The tariff shall provide for payment for every
30kilowatthour of electricity purchased from an electric generation
31facility for a period of 10, 15, or 20 years, as authorized by the
32commission. The payment shall be the market price determined
33by the commission pursuant to paragraph (2) and shall include all
34current and anticipated environmental compliance costs, including,
35but not limited to, mitigation of emissions of greenhouse gases
36and air pollution offsets associated with the operation of new
37generating facilities in the local air pollution control or air quality
38management district where the electric generation facility is
39located.

P27   1(2) The commission shall establish a methodology to determine
2the market price of electricity for terms corresponding to the length
3of contracts with an electric generation facility, in consideration
4of the following:

5(A) The long-term market price of electricity for fixed price
6contracts, determined pursuant to an electrical corporation’s general
7procurement activities as authorized by the commission.

8(B) The long-term ownership, operating, and fixed-price fuel
9costs associated with fixed-price electricity from new generating
10facilities.

11(C) The value of different electricity products including
12baseload, peaking, and as-available electricity.

13(3) The commission may adjust the payment rate to reflect the
14value of every kilowatthour of electricity generated on a
15time-of-delivery basis.

16(4) The commission shall ensure, with respect to rates and
17charges, that ratepayers that do not receive service pursuant to the
18tariff are indifferent to whether a ratepayer with an electric
19generation facility receives service pursuant to the tariff.

20(e) An electrical corporation shall provide expedited
21interconnection procedures to an electric generation facility located
22on a distribution circuit that generates electricity at a time and in
23a manner so as to offset the peak demand on the distribution circuit,
24if the electrical corporation determines that the electric generation
25facility will not adversely affect the distribution grid. The
26commission shall consider and may establish a value for an electric
27generation facility located on a distribution circuit that generates
28electricity at a time and in a manner so as to offset the peak demand
29on the distribution circuit.

30(f) (1) An electrical corporation shall make the tariff available
31to the owner or operator of an electric generation facility within
32the service territory of the electrical corporation, upon request, on
33a first-come-first-served basis, until the electrical corporation meets
34its proportionate share of a statewide cap of 750 megawatts
35cumulative rated generation capacity served under this section and
36Section 387.6. The proportionate share shall be calculated based
37on the ratio of the electrical corporation’s peak demand compared
38to the total statewide peak demand.

39(2) By June 1, 2013, the commission shall, in addition to the
40750 megawatts identified in paragraph (1), direct the electrical
P28   1corporations to collectively procure at least 250 megawatts of
2cumulative rated generating capacity from developers of bioenergy
3projects that commence operation on or after June 1, 2013. The
4commission shall, for each electrical corporation, allocate shares
5of the additional 250 megawatts based on the ratio of each electrical
6corporation’s peak demand compared to the total statewide peak
7demand. In implementing this paragraph, the commission shall do
8all of the following:

9(A) Allocate the 250 megawatts identified in this paragraph
10among the electrical corporations based on the following
11categories:

12(i) For biogas from wastewater treatment, municipal organic
13waste diversion, food processing, and codigestion, 110 megawatts.

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

15(iii) For bioenergy using byproducts of sustainable forest
16management, 50 megawatts. Allocations under this category shall
17be determined based on the proportion of bioenergy that sustainable
18forest management providers derive from sustainable forest
19management in fire threat treatment areas, as designated by the
20Department of Forestry and Fire Protection.

21(B) Direct the electrical corporations to develop standard
22contract terms and conditions that reflect the operational
23characteristics of the projects, and to provide a streamlined
24contracting process.

25(C) Coordinate, to the maximum extent feasible, any incentive
26or subsidy programs for bioenergy with the agencies listed in
27subparagraph (A) of paragraph (3) in order to provide maximum
28benefits to ratepayers and to ensure that incentives are used to
29reduce contract prices.

30(D) The commission shall encourage gas and electrical
31corporations to develop and offer programs and services to facilitate
32development of in-state biogas for a broad range of purposes.

33(3) (A) The commission, in consultation with the State Energy
34Resources Conservation and Development Commission, the State
35Air Resources Board, the Department of Forestry and Fire
36Protection, the Department of Food and Agriculture, and the
37Department of Resources Recycling and Recovery, may review
38the allocations of the 250 additional megawatts identified in
39paragraph (2) to determine if those allocations are appropriate.

P29   1(B) If the commission finds that the allocations of the 250
2additional megawatts identified in paragraph (2) are not
3appropriate, the commission may reallocate the 250 megawatts
4among the categories established in subparagraph (A) of paragraph
5(2).

6(4) (A) A project identified in clause (iii) of subparagraph (A)
7of paragraph (2) is eligible, in regards to interconnection, for the
8tariff established to implement paragraph (2) or to participate in
9any program or auction established to implement paragraph (2),
10if it meets at least one of the following requirements:

11(i) The project is already interconnected.

12(ii) The project has been found to be eligible for interconnection
13pursuant to the fast track process under the relevant tariff.

14(iii) A system impact study or other interconnection study has
15been completed for the project under the relevant tariff, and there
16was no determination in the study that, with the identified
17interconnection upgrades, if any, a condition specified in paragraph
18(2), (3), or (4) of subdivision (n) would exist. Such a project is not
19required to have a pending, active interconnection application to
20be eligible.

21(B) For a project meeting the eligibility requirements pursuant
22to clause (iii) of subparagraph (A) of this paragraph, both of the
23following apply:

24(i) The project is hereby deemed to be able to interconnect
25within the required time limits for the purpose of determining
26eligibility for the tariff.

27(ii) The project shall submit a new application for
28interconnection within 30 days of execution of a standard contract
29pursuant to the tariff if it does not have a pending, active
30interconnection application or a completed interconnection. For
31those projects, the time to achieve commercial operation shall
32begin to run from the date when the new system impact study or
33other interconnection study is completed rather than from the date
34of execution of the standard contract.

35(5) For the purposes of this subdivision, “bioenergy” means
36biogas and biomass.

37(g) The electrical corporation may make the terms of the tariff
38available to owners and operators of an electric generation facility
39in the form of a standard contract subject to commission approval.

P30   1(h) Every kilowatthour of electricity purchased from an electric
2generation facility shall count toward meeting the electrical
3corporation’s renewables portfolio standard annual procurement
4targets for purposes of paragraph (1) of subdivision (b) of Section
5399.15.

6(i) The physical generating capacity of an electric generation
7facility shall count toward the electrical corporation’s resource
8adequacy requirement for purposes of Section 380.

9(j) (1) The commission shall establish performance standards
10for any electric generation facility that has a capacity greater than
11one megawatt to ensure that those facilities are constructed,
12operated, and maintained to generate the expected annual net
13production of electricity and do not impact system reliability.

14(2) The commission may reduce the three megawatt capacity
15limitation of paragraph (1) of subdivision (b) if the commission
16finds that a reduced capacity limitation is necessary to maintain
17system reliability within that electrical corporation’s service
18territory.

19(k) (1) Any owner or operator of an electric generation facility
20that received ratepayer-funded incentives in accordance with
21Section 379.6 of this code, or with Section 25782 of the Public
22Resources Code, and participated in a net metering program
23pursuant to Sections 2827, 2827.9, and 2827.10 of this code prior
24to January 1, 2010, shall be eligible for a tariff or standard contract
25filed by an electrical corporation pursuant to this section.

26(2) In establishing the tariffs or standard contracts pursuant to
27this section, the commission shall consider ratepayer-funded
28incentive payments previously received by the generation facility
29pursuant to Section 379.6 of this code or Section 25782 of the
30Public Resources Code. The commission shall require
31reimbursement of any funds received from these incentive
32programs to an electric generation facility, in order for that facility
33to be eligible for a tariff or standard contract filed by an electrical
34corporation pursuant to this section, unless the commission
35determines ratepayers have received sufficient value from the
36incentives provided to the facility based on how long the project
37has been in operation and the amount of renewable electricity
38previously generated by the facility.

P31   1(3) A customer that receives service under a tariff or contract
2approved by the commission pursuant to this section is not eligible
3to participate in any net metering program.

4(l) An owner or operator of an electric generation facility
5electing to receive service under a tariff or contract approved by
6the commission shall continue to receive service under the tariff
7or contract until either of the following occurs:

8(1) The owner or operator of an electric generation facility no
9longer meets the eligibility requirements for receiving service
10pursuant to the tariff or contract.

11(2) The period of service established by the commission pursuant
12to subdivision (d) is completed.

13(m) Within 10 days of receipt of a request for a tariff pursuant
14to this section from an owner or operator of an electric generation
15facility, the electrical corporation that receives the request shall
16post a copy of the request on its Internet Web site. The information
17posted on the Internet Web site shall include the name of the city
18in which the facility is located, but information that is proprietary
19and confidential, including, but not limited to, address information
20beyond the name of the city in which the facility is located, shall
21be redacted.

22(n) An electrical corporation may deny a tariff request pursuant
23to this section if the electrical corporation makes any of the
24following findings:

25(1) The electric generation facility does not meet the
26requirements of this section.

27(2) The transmission or distribution grid that would serve as the
28point of interconnection is inadequate.

29(3) The electric generation facility does not meet all applicable
30state and local laws and building standards and utility
31interconnection requirements.

32(4) The aggregate of all electric generating facilities on a
33distribution circuit would adversely impact utility operation and
34load restoration efforts of the distribution system.

35(o) Upon receiving a notice of denial from an electrical
36 corporation, the owner or operator of the electric generation facility
37denied a tariff pursuant to this section shall have the right to appeal
38that decision to the commission.

39(p) In order to ensure the safety and reliability of electric
40generation facilities, the owner of an electric generation facility
P32   1receiving a tariff pursuant to this section shall provide an inspection
2and maintenance report to the electrical corporation at least once
3every other year. The inspection and maintenance report shall be
4prepared at the owner’s or operator’s expense by a
5California-licensed contractor who is not the owner or operator of
6the electric generation facility. A California-licensed electrician
7shall perform the inspection of the electrical portion of the
8generation facility.

9(q) The contract between the electric generation facility
10receiving the tariff and the electrical corporation shall contain
11provisions that ensure that construction of the electric generating
12facility complies with all applicable state and local laws and
13building standards, and utility interconnection requirements.

14(r) (1) All construction and installation of facilities of the
15electrical corporation, including at the point of the output meter
16or at the transmission or distribution grid, shall be performed only
17by that electrical corporation.

18(2) All interconnection facilities installed on the electrical
19corporation’s side of the transfer point for electricity between the
20electrical corporation and the electrical conductors of the electric
21generation facility shall be owned, operated, and maintained only
22by the electrical corporation. The ownership, installation, operation,
23reading, and testing of revenue metering equipment for electric
24generating facilities shall only be performed by the electrical
25corporation.

26

SEC. 9.5.  

Section 399.20 of the Public Utilities Code is
27amended to read:

28

399.20.  

(a) It is the policy of this state and the intent of the
29Legislature to encourage electrical generation from eligible
30renewable energy resources.

31(b) As used in this section, “electric generation facility” means
32an electric generation facility located within the service territory
33of, and developed to sell electricity to, an electrical corporation
34that meets all of the following criteria:

35(1) Has an effective capacity of not more than three megawatts,
36with the exception of those facilities participating in a tariff made
37 available pursuant to paragraph (2) of subdivision (f).

38(2) Is interconnected and operates in parallel with the electrical
39transmission and distribution grid.

P33   1(3) Is strategically located and interconnected to the electrical
2transmission and distribution grid in a manner that optimizes the
3deliverability of electricity generated at the facility to load centers.

4(4) Is an eligible renewable energy resource.

5(c) Every electrical corporation shall file with the commission
6a standard tariff for electricity purchased from an electric
7generation facility. The commission may modify or adjust the
8requirements of this section for any electrical corporation with less
9than 100,000 service connections, as individual circumstances
10merit.

11(d) (1) The tariff shall provide for payment for every
12kilowatthour of electricity purchased from an electric generation
13facility for a period of 10, 15, or 20 years, as authorized by the
14commission. The payment shall be the market price determined
15by the commission pursuant to paragraph (2) and shall include all
16current and anticipated environmental compliance costs, including,
17but not limited to, mitigation of emissions of greenhouse gases
18and air pollution offsets associated with the operation of new
19generating facilities in the local air pollution control or air quality
20management district where the electric generation facility is
21located.

22(2) The commission shall establish a methodology to determine
23the market price of electricity for terms corresponding to the length
24of contracts with an electric generation facility, in consideration
25of the following:

26(A) The long-term market price of electricity for fixed price
27contracts, determined pursuant to an electrical corporation’s general
28procurement activities as authorized by the commission.

29(B) The long-term ownership, operating, and fixed-price fuel
30costs associated with fixed-price electricity from new generating
31facilities.

32(C) The value of different electricity products including
33baseload, peaking, and as-available electricity.

34(3) The commission may adjust the payment rate to reflect the
35value of every kilowatthour of electricity generated on a
36time-of-delivery basis.

37(4) The commission shall ensure, with respect to rates and
38charges, that ratepayers that do not receive service pursuant to the
39tariff are indifferent to whether a ratepayer with an electric
40generation facility receives service pursuant to the tariff.

P34   1(e) An electrical corporation shall provide expedited
2interconnection procedures to an electric generation facility located
3on a distribution circuit that generates electricity at a time and in
4a manner so as to offset the peak demand on the distribution circuit,
5if the electrical corporation determines that the electric generation
6facility will not adversely affect the distribution grid. The
7commission shall consider and may establish a value for an electric
8generation facility located on a distribution circuit that generates
9electricity at a time and in a manner so as to offset the peak demand
10on the distribution circuit.

11(f) (1) An electrical corporation shall make the tariff available
12to the owner or operator of an electric generation facility within
13the service territory of the electrical corporation, upon request, on
14a first-come-first-served basis, until the electrical corporation meets
15its proportionate share of a statewide cap of 750 megawatts
16cumulative rated generation capacity served under this section and
17Section 387.6. The proportionate share shall be calculated based
18on the ratio of the electrical corporation’s peak demand compared
19to the total statewide peak demand.

20(2) By June 1, 2013, the commission shall, in addition to the
21750 megawatts identified in paragraph (1), direct the electrical
22corporations to collectively procure at least 250 megawatts of
23cumulative rated generating capacity from developers of bioenergy
24projects that commence operation on or after June 1, 2013. The
25commission shall, for each electrical corporation, allocate shares
26of the additional 250 megawatts based on the ratio of each electrical
27corporation’s peak demand compared to the total statewide peak
28demand. In implementing this paragraph, the commission shall do
29all of the following:

30(A) Allocate the 250 megawatts identified in this paragraph
31among the electrical corporations based on the following
32categories:

33(i) For biogas from wastewater treatment, municipal organic
34waste diversion, food processing, and codigestion, 110 megawatts.

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

36(iii) For bioenergy using byproducts of sustainable forest
37management, 50 megawatts. Allocations under this category shall
38be determined based on the proportion of bioenergy that sustainable
39forest management providers derive from sustainable forest
P35   1management in fire threat treatment areas, as designated by the
2Department of Forestry and Fire Protection.

3(B) Direct the electrical corporations to develop standard
4contract terms and conditions that reflect the operational
5characteristics of the projects, and to provide a streamlined
6contracting process.

7(C) Coordinate, to the maximum extent feasible, any incentive
8or subsidy programs for bioenergy with the agencies listed in
9subparagraph (A) of paragraph (3) in order to provide maximum
10benefits to ratepayers and to ensure that incentives are used to
11reduce contract prices.

12(D) The commission shall encourage gas and electrical
13corporations to develop and offer programs and services to facilitate
14development of in-state biogas for a broad range of purposes.

15(E) Direct the electrical corporations to authorize a bioenergy
16electric generation facility with a nameplate generating capacity
17of up to five megawatts to participate in the tariff made available
18pursuant to this paragraph, if it meets the following conditions:

19(i) It delivers no more than three megawatts to the grid at any
20time.

21(ii) It complies with the electrical corporation’s Electric Rule
2221 tariff or other distribution access tariff.

23(iii) Payment is made pursuant to paragraph (1) of subdivision
24(d) and no payment is made for any electricity delivered to the
25grid in excess of three megawatts at any time.

26(3) (A) The commission, in consultation with the State Energy
27Resources Conservation and Development Commission, the State
28Air Resources Board, the Department of Forestry and Fire
29Protection, the Department of Food and Agriculture, and the
30Department of Resources Recycling and Recovery, may review
31the allocations of the 250 additional megawatts identified in
32paragraph (2) to determine if those allocations are appropriate.

33(B) If the commission finds that the allocations of the 250
34additional megawatts identified in paragraph (2) are not
35appropriate, the commission may reallocate the 250 megawatts
36among the categories established in subparagraph (A) of paragraph
37(2).

38(4) (A) A project identified in clause (iii) of subparagraph (A)
39of paragraph (2) is eligible, in regards to interconnection, for the
40tariff established to implement paragraph (2) or to participate in
P36   1any program or auction established to implement paragraph (2),
2if it meets at least one of the following requirements:

3(i) The project is already interconnected.

4(ii) The project has been found to be eligible for interconnection
5pursuant to the fast track process under the relevant tariff.

6(iii) A system impact study or other interconnection study has
7been completed for the project under the relevant tariff, and there
8was no determination in the study that, with the identified
9interconnection upgrades, if any, a condition specified in paragraph
10(2), (3), or (4) of subdivision (n) would exist. Such a project is not
11required to have a pending, active interconnection application to
12be eligible.

13(B) For a project meeting the eligibility requirements pursuant
14to clause (iii) of subparagraph (A) of this paragraph, both of the
15following apply:

16(i) The project is hereby deemed to be able to interconnect
17within the required time limits for the purpose of determining
18eligibility for the tariff.

19(ii) The project shall submit a new application for
20interconnection within 30 days of execution of a standard contract
21pursuant to the tariff if it does not have a pending, active
22interconnection application or a completed interconnection. For
23those projects, the time to achieve commercial operation shall
24begin to run from the date when the new system impact study or
25other interconnection study is completed rather than from the date
26of execution of the standard contract.

27(5) For the purposes of this subdivision, “bioenergy” means
28biogas and biomass.

29(g) The electrical corporation may make the terms of the tariff
30available to owners and operators of an electric generation facility
31in the form of a standard contract subject to commission approval.

32(h) Every kilowatthour of electricity purchased from an electric
33generation facility shall count toward meeting the electrical
34corporation’s renewables portfolio standard annual procurement
35targets for purposes of paragraph (1) of subdivision (b) of Section
36399.15.

37(i) The physical generating capacity of an electric generation
38facility shall count toward the electrical corporation’s resource
39adequacy requirement for purposes of Section 380.

P37   1(j) (1) The commission shall establish performance standards
2for any electric generation facility that has a capacity greater than
3one megawatt to ensure that those facilities are constructed,
4operated, and maintained to generate the expected annual net
5production of electricity and do not impact system reliability.

6(2) The commission may reduce the three megawatt capacity
7limitation of paragraph (1) of subdivision (b) if the commission
8finds that a reduced capacity limitation is necessary to maintain
9system reliability within that electrical corporation’s service
10territory.

11(k) (1) Any owner or operator of an electric generation facility
12that received ratepayer-funded incentives in accordance with
13Section 379.6 of this code, or with Section 25782 of the Public
14Resources Code, and participated in a net metering program
15pursuant to Sections 2827, 2827.9, and 2827.10 of this code prior
16to January 1, 2010, shall be eligible for a tariff or standard contract
17filed by an electrical corporation pursuant to this section.

18(2) In establishing the tariffs or standard contracts pursuant to
19this section, the commission shall consider ratepayer-funded
20incentive payments previously received by the generation facility
21pursuant to Section 379.6 of this code or Section 25782 of the
22Public Resources Code. The commission shall require
23reimbursement of any funds received from these incentive
24programs to an electric generation facility, in order for that facility
25to be eligible for a tariff or standard contract filed by an electrical
26corporation pursuant to this section, unless the commission
27determines ratepayers have received sufficient value from the
28incentives provided to the facility based on how long the project
29has been in operation and the amount of renewable electricity
30previously generated by the facility.

31(3) A customer that receives service under a tariff or contract
32approved by the commission pursuant to this section is not eligible
33to participate in any net metering program.

34(l) An owner or operator of an electric generation facility
35electing to receive service under a tariff or contract approved by
36the commission shall continue to receive service under the tariff
37or contract until either of the following occurs:

38(1) The owner or operator of an electric generation facility no
39longer meets the eligibility requirements for receiving service
40pursuant to the tariff or contract.

P38   1(2) The period of service established by the commission pursuant
2to subdivision (d) is completed.

3(m) Within 10 days of receipt of a request for a tariff pursuant
4to this section from an owner or operator of an electric generation
5facility, the electrical corporation that receives the request shall
6post a copy of the request on its Internet Web site. The information
7posted on the Internet Web site shall include the name of the city
8in which the facility is located, but information that is proprietary
9and confidential, including, but not limited to, address information
10beyond the name of the city in which the facility is located, shall
11be redacted.

12(n) An electrical corporation may deny a tariff request pursuant
13to this section if the electrical corporation makes any of the
14following findings:

15(1) The electric generation facility does not meet the
16requirements of this section.

17(2) The transmission or distribution grid that would serve as the
18point of interconnection is inadequate.

19(3) The electric generation facility does not meet all applicable
20state and local laws and building standards and utility
21interconnection requirements.

22(4) The aggregate of all electric generating facilities on a
23distribution circuit would adversely impact utility operation and
24load restoration efforts of the distribution system.

25(o) Upon receiving a notice of denial from an electrical
26corporation, the owner or operator of the electric generation facility
27denied a tariff pursuant to this section shall have the right to appeal
28that decision to the commission.

29(p) In order to ensure the safety and reliability of electric
30generation facilities, the owner of an electric generation facility
31receiving a tariff pursuant to this section shall provide an inspection
32and maintenance report to the electrical corporation at least once
33every other year. The inspection and maintenance report shall be
34prepared at the owner’s or operator’s expense by a
35California-licensed contractor who is not the owner or operator of
36the electric generation facility. A California-licensed electrician
37shall perform the inspection of the electrical portion of the
38generation facility.

39(q) The contract between the electric generation facility
40receiving the tariff and the electrical corporation shall contain
P39   1provisions that ensure that construction of the electric generating
2facility complies with all applicable state and local laws and
3building standards, and utility interconnection requirements.

4(r) (1) All construction and installation of facilities of the
5electrical corporation, including at the point of the output meter
6or at the transmission or distribution grid, shall be performed only
7by that electrical corporation.

8(2) All interconnection facilities installed on the electrical
9corporation’s side of the transfer point for electricity between the
10electrical corporation and the electrical conductors of the electric
11generation facility shall be owned, operated, and maintained only
12by the electrical corporation. The ownership, installation, operation,
13reading, and testing of revenue metering equipment for electric
14generating facilities shall only be performed by the electrical
15corporation.

16

SEC. 10.  

The Legislature finds and declares all of the
17following:

18(a) California imports 91 percent of its natural gas, which is
19responsible for 25 percent of the state’s emissions of greenhouse
20gases.

21(b) California made a commitment to address climate change
22with the California Global Warming Solutions Act of 2006
23(Division 25.5 (commencing with Section 38500) of the Health
24and Safety Code) and the adoption of a comprehensive strategy to
25reduce emissions of short-lived climate pollutants (Chapter 4.2
26(commencing with Section 39730) of Part 2 of Division 26 of the
27Health and Safety Code). For California to meet its goals for
28reducing emissions of greenhouse gases and short-lived climate
29pollutants, the state must reduce emissions from the natural gas
30sector and increase the production and distribution of renewable
31and low-carbon gas supplies.

32(c) Biomethane is gas generated from organic waste through
33anaerobic digestion, gasification, pyrolysis, or other conversion
34technology that converts organic matter to gas. Biomethane may
35be produced from multiple sources, including agricultural waste,
36forest waste, landfill gas, wastewater treatment byproducts, and
37diverted organic waste.

38(d) Biomethane provides a sustainable and clean alternative to
39natural gas. If 10 percent of California’s natural gas use were to
40be replaced with biomethane use, emissions of greenhouse gases
P40   1would be reduced by tens of millions of metric tons of carbon
2dioxide equivalent every year.

3(e) Investing in biomethane would create cobenefits, including
4flexible generation of electricity from a renewable source that is
5available 24 hours a day, reduction of fossil fuel use, reduction of
6air and water pollution, and new jobs.

7(f) Biomethane can also be used as transportation fuel or injected
8into natural gas pipelines for other uses. The most appropriate use
9of biomethane varies depending on the source, proximity to existing
10natural gas pipeline injection points or large vehicle fleets, and the
11circumstances of existing facilities.

12(g) The biomethane market has been slow to develop in
13California because the collection, purification, and pipeline
14injection of biomethane can be costly.

15(h) Biomethane is poised to play a key role in future natural gas
16and hydrogen fuel markets as a blendstock that can significantly
17reduce the carbon footprint of these two fossil-based alternative
18fuels.

19(i) Biomethane is one of the most promising alternative vehicle
20fuels because it generates the least net emissions of greenhouse
21gases. According to the low-carbon fuel standard regulations
22(Subarticle 7 (commencing with Section 95480) of Article 4 of
23Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
24California Code of Regulations) adopted by the State Air Resources
25Board, vehicles running on biomethane generate significantly
26lower emissions of greenhouse gases than vehicles running on
27electricity or fossil fuel-derived hydrogen.

28(j) The California Council on Science and Technology was
29established by California academic research institutions, including
30the University of California, the University of Southern California,
31the California Institute of Technology, Stanford University, and
32the California State University, and was organized as a nonprofit
33corporation pursuant to Section 501(c)(3) of the Internal Revenue
34Code, in response to Assembly Concurrent Resolution No. 162
35(Resolution Chapter 148 of the Statutes of 1988).

36(k) The California Council on Science and Technology was
37uniquely established at the request of the Legislature for the
38specific purpose of offering expert advice to state government on
39public policy issues significantly related to science and technology.

P41   1(l) It is in the public’s interests, and in the interest of ratepayers
2of the state’s gas corporations, that the policies and programs
3adopted by the Public Utilities Commission be guided by the best
4science reasonably available.

5

SEC. 11.  

Section 784.1 is added to the Public Utilities Code,
6to read:

7

784.1.  

(a) The Legislature requests that the California Council
8on Science and Technology undertake and complete a study
9analyzing the regional and gas corporation specific issues relating
10to minimum heating value and maximum siloxane specifications
11for biomethane before it can be injected into common carrier gas
12pipelines, including those specifications adopted in Sections 4.4.3.3
13and 4.4.4 of commission Decision 14-01-034 (January 16, 2014),
14Decision Regarding the Biomethane Implementation Tasks in
15Assembly Bill 1900. The study shall consider and evaluate other
16states’ standards, the source of biomethane, the dilution of
17biomethane after it is injected into the pipeline, the equipment and
18technology upgrades required to meet the minimum heating value
19specifications, including the impacts of those specifications on the
20cost, volume of biomethane sold, equipment operation, and safety.
21The study shall also consider whether different sources of biogas
22should have different standards or if all sources should adhere to
23one standard for the minimum heating value and maximum
24permissible level of siloxanes. The study shall develop the best
25science reasonably available and not merely be a literature review.
26In order to meet the state’s goals for reducing emissions of
27greenhouse gases and short-lived climate pollutants and the state’s
28goals for promoting the use of renewable energy resources in place
29of burning fossil fuels, the California Council on Science and
30Technology, if it agrees to undertake and complete the study, shall
31complete the study within nine months of entering into a contract
32to undertake and complete the study.

33(b) (1) If the California Council on Science and Technology
34agrees to undertake and complete the study pursuant to subdivision
35(a), the commission shall require each gas corporation operating
36common carrier pipelines in California to proportionately
37contribute to the expenses to undertake the study pursuant to
38Sections 740 and 740.1. The commission may modify the monetary
39incentives made available pursuant to commission Decision
4015-06-029 (June 11, 2015), Decision Regarding the Costs of
P42   1Compliance with Decision 14-01-034 and Adoption of Biomethane
2Promotion Policies and Program, to allocate some of the moneys
3that would be made available for incentives to instead be made
4available to pay for the costs of the study so as to not further burden
5ratepayers with additional expense.

6(2) The commission’s authority pursuant to paragraph (1) shall
7apply notwithstanding whether the gas corporation has proposed
8the program pursuant to Section 740.1.

9(c) If the California Council on Science and Technology agrees
10to undertake and complete the study pursuant to subdivision (a),
11within six months of its completion, the commission shall
12reevaluate its requirements and standards adopted pursuant to
13Section 25421 of the Health and Safety Code relative to the
14requirements and standards for biomethane to be injected into
15common carrier pipelines and, if appropriate, change those
16requirements and standards or adopt new requirements and
17standards, giving due deference to the conclusions and
18recommendations made in the study by the California Council on
19Science and Technology.

20

SEC. 12.  

Section 2834 of the Public Utilities Code is repealed.

21

SEC. 13.  

(a) By March 31, 2017, the Public Utilities
22Commission shall report to the relevant policy and fiscal
23committees of the Legislature on its business process inventory
24efforts. The report shall include documentation and measurement
25of commission processes, including administrative and monitoring
26processes shaped by law and judicial review, program performance
27and communications pursuant to the commission’s rules and
28procedures, and internal processes related to administration and
29managing human resources.

30(b) The report shall be submitted in compliance with Section
319795 of the Government Code.

32(c) Pursuant to Section 10231.5 of the Government Code, this
33section is repealed on April 1, 2021.

34

SEC. 14.  

(a) By March 31, 2017, the Public Utilities
35Commission shall report to the relevant policy and fiscal
36committees of the Legislature on options to locate operations and
37staff outside of the commission’s San Francisco headquarters. The
38report shall explore options for leveraging additional facilities in
39areas of the state, including Sacramento, that would allow the
40commission to collaborate with other state entities and provide
P43   1staff more opportunities for training, career development, and
2exchange placements with other state entities. The report shall do
3both of the following:

4(1) Consider categories of operations in different offices.

5(2) Analyze recruitment and retention, salary disparities by
6location based on duty statements, and costs associated with using
7locations outside of San Francisco with no, or minimal, disruption
8of current commission employees.

9(b) The commission shall conduct one or more public workshops
10to obtain suggestions, concerns, ideas, and comments from
11stakeholders and interested members of the public in furtherance
12of the purpose of the report.

13(c) (1) The report shall be submitted in compliance with Section
149795 of the Government Code.

15(2) Pursuant to Section 10231.5 of the Government Code, this
16section is repealed on April 1, 2021.

17

SEC. 15.  

Section 4.5 of this bill incorporates amendments to
18Section 1546.1 of the Penal Code proposed by both this bill and
19Assembly Bill 1924. It shall only become operative if (1) both
20bills are enacted and become effective on or before January 1,
212017, (2) each bill amends Section 1546.1 of the Penal Code, and
22(3) this bill is enacted after Assembly Bill 1924, in which case
23Section 4 of this bill shall not become operative.

24

SEC. 16.  

Section 9.5 of this bill incorporates amendments to
25Section 399.20 of the Public Utilities Code proposed by both this
26bill and Assembly Bill 1923. It shall only become operative if (1)
27both bills are enacted and become effective on or before January
281, 2017, (2) each bill amends Section 399.20 of the Public Utilities
29Code, and (3) this bill is enacted after Assembly Bill 1923, in
30which case Section 9 of this bill shall not become operative.

31

SEC. 17.  

The sum of two hundred seventy-five thousand dollars
32($275,000) is hereby appropriated from the Appliance Efficiency
33Enforcement Subaccount in the Energy Resources Programs
34Account to the State Energy Resources Conservation and
35Development Commission to support the Title 20 Appliance
36Efficiency Standards Compliance Assistance and Enforcement
37Program.

38

SEC. 18.  

No reimbursement is required by this act pursuant to
39Section 6 of Article XIII B of the California Constitution because
40the only costs that may be incurred by a local agency or school
P44   1district will be incurred because this act creates a new crime or
2infraction, eliminates a crime or infraction, or changes the penalty
3for a crime or infraction, within the meaning of Section 17556 of
4the Government Code, or changes the definition of a crime within
5the meaning of Section 6 of Article XIII B of the California
6Constitution.

7

SEC. 19.  

This act is a bill providing for appropriations related
8to the Budget Bill within the meaning of subdivision (e) of Section
912 of Article IV of the California Constitution, has been identified
10as related to the budget in the Budget Bill, and shall take effect
11immediately.

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