BILL NUMBER: SB 840	CHAPTERED
	BILL TEXT

	CHAPTER  341
	FILED WITH SECRETARY OF STATE  SEPTEMBER 13, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 13, 2016
	PASSED THE SENATE  AUGUST 22, 2016
	PASSED THE ASSEMBLY  JUNE 16, 2016
	AMENDED IN ASSEMBLY  JUNE 14, 2016
	AMENDED IN ASSEMBLY  MAY 25, 2016

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 7, 2016

   An act to amend Section 51013.1 of, and to add Section 51015.6 to,
the Government Code, to amend Section 44273 of the Health and Safety
Code, to amend Section 1546.1 of the Penal Code, to amend Sections
3401 and 25751 of the Public Resources Code, and 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, and making an appropriation therefor, to take
effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 840, Committee on Budget and Fiscal Review. Public resources:
energy.
   (1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities. Existing law authorizes
the PUC to fix the rates and charges for every public utility and
requires that those rates and charges be just and reasonable.
Existing law authorizes certain public utilities, including gas
corporations, to propose research and development programs and
authorizes the PUC to allow inclusion of expenses for research and
development in the public utility's rates. Existing law requires the
PUC to consider specified guidelines in evaluating the research,
development, and demonstration programs proposed by gas corporations.

   The California Renewables Portfolio Standard Program requires the
PUC to adopt policies and programs that promote the in-state
production and distribution of biomethane. Existing law requires the
PUC to adopt, by rule or order, standards for biomethane that specify
the concentrations of constituents of concern that are reasonably
necessary to protect public health and ensure pipeline integrity and
safety, as specified, and requirements for monitoring, testing,
reporting, and recordkeeping, as specified. Existing law requires a
gas corporation to comply with those standards and requirements and
requires that gas corporation tariffs condition access to common
carrier pipelines on the applicable customer meeting those standards
and requirements. Under existing law, a violation of the Public
Utilities Act or any order, decision, rule, direction, demand, or
requirement of the PUC is a crime.
   This bill would request the California Council on Science and
Technology to undertake and complete a study analyzing the regional
and gas corporation specific issues relating to minimum heating value
and maximum siloxane specifications adopted by the PUC for
biomethane before it can be injected into common carrier gas
pipelines. If the California Council on Science and Technology agrees
to undertake and complete the study, the bill would require each gas
corporation operating common carrier pipelines in California to
proportionately contribute to the expenses to undertake the study
with the cost recoverable in rates. The bill would authorize the PUC
to modify certain available monetary incentives to allocate some of
the incentive moneys to pay for the costs of the study so as to not
further burden ratepayers with additional expense. If the California
Council on Science and Technology agrees to undertake and complete
the study, the bill would require the PUC, within 6 months of its
completion, to reevaluate requirements and standards adopted for
injection of biomethane into common carrier pipelines and, if
appropriate, change those requirements and standards or adopt new
requirements and standards, giving due deference to the conclusions
and recommendations made in the study. 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.
   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.
   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.
   The Green Tariff Shared Renewables Program requires a
participating utility, defined as being an electrical corporation
with 100,000 or more customers in California, to file with the PUC an
application requesting approval of a tariff to implement a program
enabling ratepayers to participate directly in offsite electrical
generation facilities that use eligible renewable energy resources,
consistent with certain legislative findings and statements of
intent. Existing law requires the PUC, by July 1, 2014, to issue a
decision concerning the participating utility's application,
determining whether to approve or disapprove the application, with or
without modifications. Existing law requires the PUC, after notice
and opportunity for public comment, to approve the application if the
PUC determines that the proposed program is reasonable and
consistent with the legislative findings and statements of intent and
requires the PUC to require that a participating utility's green
tariff shared renewables program be administered in accordance with
specified provisions. Existing law repeals the program on January 1,
2019.
   This bill would extend the operation of the program indefinitely.
By extending the requirements of the Green Tariff Shared Renewables
Program the bill would impose a state-mandated local program by
extending the application of a crime.
   Decisions of the PUC adopted the California Solar Initiative
administered by electrical corporations and subject to the PUC's
supervision. Existing law requires the PUC and the State Energy
Resources Conservation and Development Commission (Energy Commission)
to undertake certain steps in implementing the California Solar
Initiative and requires the PUC to ensure that the total cost over
the duration of the program does not exceed $3,550,800,000. Existing
law specifies that the financial components of the California Solar
Initiative include the New Solar Homes Partnership Program, which is
administered by the Energy Commission. Existing law requires the
program to be funded by charges in the amount of $400,000,000
collected from customers of the state's 3 largest electrical
corporations. If moneys from the Renewable Resource Trust Fund for
the program are exhausted, existing law authorizes the PUC, upon
notification by the Energy Commission, to require those electrical
corporations to continue the administration of the program pursuant
to the guidelines established by the Energy Commission for the
program until the $400,000,000 monetary limit is reached. Existing
law authorizes the PUC to determine whether a 3rd party, including
the Energy Commission, should administer the electrical corporation's
continuation of the program. Existing law establishes the Renewable
Resource Trust Fund as a fund that is continuously appropriated, with
certain exceptions for administrative expenses, in the State
Treasury.
   This bill would require, if the PUC orders a continuation of the
New Solar Homes Partnership Program and determines that the Energy
Commission should be the 3rd party administrator for the program,
that any funding made available for the program be deposited into the
Emerging Renewable Resources Account of the Renewable Resource Trust
Fund and used for the program.
   (2) The Public Utilities Act requires the PUC to submit various
reports to the Legislature relative to the actions of the PUC.
   This bill would require the PUC to submit 2 reports to the
relevant policy and fiscal committees of the Legislature by March 1,
2017. The first report would pertain to the PUC's business process
inventory efforts. The 2nd report would concern options to locate
operations and staff outside of the PUC's San Francisco headquarters
and would explore options to allow the PUC to collaborate with other
state entities and provide staff more opportunities for training,
career development, and exchange placements with other state
entities.
   Existing law, with exceptions, prohibits a government entity from
compelling the production of or access to electronic communication
information or electronic device information without a search
warrant, wiretap order, order for electronic reader records, or
subpoena.
   This bill would provide that the above provisions do not limit the
authority of the PUC or the Energy Commission to obtain energy or
water supply and consumption information pursuant to the powers
granted to them under the Public Utilities Code or the Public
Resources Code and other applicable state laws.
   (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.
   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.
   Under existing law, a violation of the Public Utilities Act is a
crime.
   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.
   (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 a plan by January 1, 2018, to
retrofit those pipelines for these purposes using the best available
technology by January 1, 2020. A violation of these provisions is a
crime.
   This bill would define "oil" for these provisions of the act
concerning pipeline safety, by reference to a specified federal
regulation, to mean petroleum, petroleum products, anhydrous ammonia,
and ethanol. By expanding the scope of a crime, the bill would
impose a state-mandated local program.
   Under the Elder California Pipeline Safety Act of 1981, the State
Fire Marshal administers provisions regulating the inspection of
intrastate pipelines that transport hazardous liquids.
   This bill would require the State Fire Marshal, on or before
January 31, 2017, and on or before January 31 annually thereafter
until January 31, 2021, to submit a report to the Legislature
containing specified information regarding the inspection of those
pipelines, shutoff systems in those pipelines, and the status of 2
specified pipelines.
   (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.
   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.
   (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.
   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.
   (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 in the subaccount to be expended by the Energy
Commission, upon appropriation by the Legislature, for the education
of the public regarding appliance energy efficiency and for the
enforcement of specified regulations.
   This bill would appropriate $275,000 from the Appliance Efficiency
Enforcement Subaccount in the Energy Resources Programs Account to
the Energy Commission to support the Title 20 Appliance Efficiency
Standards Compliance Assistance and Enforcement Program.
   (8) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (9) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 51013.1 of the Government Code is amended to
read:
   51013.1.  (a) By January 1, 2018, any new or replacement pipeline
near environmentally and ecologically sensitive areas in the coastal
zone shall use best available technology, including, but not limited
to, the installation of leak detection technology, automatic shutoff
systems, or remote controlled sectionalized block valves, or any
combination of these technologies, based on a risk analysis conducted
by the operator, to reduce the amount of oil released in an oil
spill to protect state waters and wildlife.
   (b) (1) By July 1, 2018, an operator of an existing pipeline near
environmentally and ecologically sensitive areas in the coastal zone
shall submit a plan to retrofit, by January 1, 2020, existing
pipelines near environmentally and ecologically sensitive areas in
the coastal zone with the best available technology, including, but
not limited to, installation of leak detection technologies,
automatic shutoff systems, or remote controlled sectionalized block
valves, or any combination of these technologies, based on a risk
analysis conducted by the operator to reduce the amount of oil
released in an oil spill to protect state waters and wildlife.
   (2) An operator may request confidential treatment of information
submitted in the plan required by paragraph (1) or contained in any
documents associated with the risk analysis described in this
section, including, but not limited to, information regarding the
proposed location of automatic shutoff valves or remote controlled
sectionalized block valves.
   (c) The State Fire Marshal shall adopt regulations pursuant to
this section by July 1, 2017. The regulations shall include, but not
be limited to, all of the following:
   (1) A definition of automatic shutoff systems.
   (2) A process to assess the adequacy of the operator's risk
analysis.
   (3) A process by which an operator may request confidential
treatment of information submitted in the plan required by paragraph
(1) of subdivision (b) or contained in any documents associated with
the risk analysis described in this section.
   (4) A determination of how near to an environmentally and
ecologically sensitive area a pipeline must be to be subject to the
requirements of this section based on the likelihood of the pipeline
impacting those areas.
   (d) An operator of a pipeline near environmentally and
ecologically sensitive areas in the coastal zone shall notify the
Office of the State Fire Marshal of any new construction or retrofit
of pipeline in these waters.
   (e) For purposes of implementing this section, the State Fire
Marshal shall consult with the Office of Spill Prevention and
Response about the potential impacts to state water and wildlife.
   (f) For purposes of this section, "environmentally and
ecologically sensitive areas" is the same term as described in
subdivision (d) of Section 8574.7.
   (g) (1) For purposes of this section, "best available technology"
means technology that provides the greatest degree of protection by
limiting the quantity of release in the event of a spill, taking into
consideration whether the processes are currently in use and could
be purchased anywhere in the world.
   (2) The State Fire Marshal shall determine what is the best
available technology and shall consider the effectiveness and
engineering feasibility of the technology when making this
determination.
   (h) For the purposes of this section, "oil" means hazardous liquid
as defined in Section 195.2 of Title 49 of the Code of Federal
Regulations.
  SEC. 2.  Section 51015.6 is added to the Government Code, to read:
   51015.6.  (a) On or before January 31, 2017, and on or before
January 31 annually thereafter, the State Fire Marshal shall submit a
report to the Legislature containing information, including, but not
limited to, all of the following:
   (1) The number of annual inspections conducted pursuant to Section
51015.1.
   (2) The status of the installation of automatic shutoff systems
pursuant to Section 51013.1, including a summary of the types of
shutoff systems installed, and the number of miles of pipeline
covered by an automatic shutoff system.
   (3) The status of Line 901 and Line 903 in the County of Santa
Barbara.
   (b) (1) A report required to be submitted pursuant to subdivision
(a) shall be submitted in compliance with Section 9795.
   (2) Pursuant to Section 10231.5, this section is inoperative on
January 31, 2021.
  SEC. 3.  Section 44273 of the Health and Safety Code is amended to
read:
   44273.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Fund is hereby created in the State Treasury, to be
administered by the commission. The moneys in the fund, upon
appropriation by the Legislature, shall be expended by the commission
to implement the Alternative and Renewable Fuel and Vehicle
Technology Program in accordance with this chapter.
   (b) Beginning with the integrated energy policy report adopted in
2011, and in the subsequent reports adopted thereafter, pursuant to
Section 25302 of the Public Resources Code, the commission shall
include an evaluation of research, development, and deployment
efforts funded by this chapter. The evaluation shall include all of
the following:
   (1) A list of projects funded by the Alternative and Renewable
Fuel and Vehicle Technology Fund.
   (2) The expected benefits of the projects in terms of air quality,
petroleum use reduction, greenhouse gas emissions reduction,
technology advancement, benefit-cost assessment, and progress towards
achieving these benefits.
   (3) The overall contribution of the funded projects toward
promoting a transition to a diverse portfolio of clean, alternative
transportation fuels and reduced petroleum dependency in California.
   (4) Key obstacles and challenges to meeting these goals identified
through funded projects.
   (5) Recommendations for future actions.
  SEC. 4.  Section 1546.1 of the Penal Code is amended to read:
   1546.1.  (a) Except as provided in this section, a government
entity shall not do any of the following:
   (1) Compel the production of or access to electronic communication
information from a service provider.
   (2) Compel the production of or access to electronic device
information from any person or entity other than the authorized
possessor of the device.
   (3) Access electronic device information by means of physical
interaction or electronic communication with the electronic device.
This section does not prohibit the intended recipient of an
electronic communication from voluntarily disclosing electronic
communication information concerning that communication to a
government entity.
   (b) A government entity may compel the production of or access to
electronic communication information from a service provider, or
compel the production of or access to electronic device information
from any person or entity other than the authorized possessor of the
device only under the following circumstances:
   (1) Pursuant to a warrant issued pursuant to Chapter 3 (commencing
with Section 1523) and subject to subdivision (d).
   (2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
(commencing with Section 629.50) of Title 15 of Part 1.
   (3) Pursuant to an order for electronic reader records issued
pursuant to Section 1798.90 of the Civil Code.
   (4) Pursuant to a subpoena issued pursuant to existing state law,
provided that the information is not sought for the purpose of
investigating or prosecuting a criminal offense, and compelling the
production of or access to the information via the subpoena is not
otherwise prohibited by state or federal law. Nothing in this
paragraph shall be construed to expand any authority under state law
to compel the production of or access to electronic information.
   (c) A government entity may access electronic device information
by means of physical interaction or electronic communication with the
device only as follows:
   (1) Pursuant to a warrant issued pursuant to Chapter 3 (commencing
with Section 1523) and subject to subdivision (d).
   (2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
(commencing with Section 629.50) of Title 15 of Part 1.
   (3) With the specific consent of the authorized possessor of the
device.
   (4) With the specific consent of the owner of the device, only
when the device has been reported as lost or stolen.
   (5) If the government entity, in good faith, believes that an
emergency involving danger of death or serious physical injury to any
person requires access to the electronic device information.
   (6) If the government entity, in good faith, believes the device
to be lost, stolen, or abandoned, provided that the entity shall only
access electronic device information in order to attempt to
identify, verify, or contact the owner or authorized possessor of the
device.
   (7) Except where prohibited by state or federal law, if the device
is seized from an inmate's possession or found in an area of a
correctional facility under the jurisdiction of the Department of
Corrections and Rehabilitation where inmates have access and the
device is not in the possession of an individual and the device is
not known or believed to be the possession of an authorized visitor.
Nothing in this paragraph shall be construed to supersede or override
Section 4576.
   (d) Any warrant for electronic information shall comply with the
following:
   (1) The warrant shall describe with particularity the information
to be seized by specifying the time periods covered and, as
appropriate and reasonable, the target individuals or accounts, the
applications or services covered, and the types of information
sought.
   (2) The warrant shall require that any information obtained
through the execution of the warrant that is unrelated to the
objective of the warrant shall be sealed and not subject to further
review, use, or disclosure without a court order. A court shall issue
such an order upon a finding that there is probable cause to believe
that the information is relevant to an active investigation, or
review, use, or disclosure is required by state or federal law.
   (3) The warrant shall comply with all other provisions of
California and federal law, including any provisions prohibiting,
limiting, or imposing additional requirements on the use of search
warrants. If directed to a service provider, the warrant shall be
accompanied by an order requiring the service provider to verify the
authenticity of electronic information that it produces by providing
an affidavit that complies with the requirements set forth in Section
1561 of the Evidence Code. Admission of that information into
evidence shall be subject to Section 1562 of the Evidence Code.
   (e) When issuing any warrant or order for electronic information,
or upon the petition from the target or recipient of the warrant or
order, a court may, at its discretion, do any or all of the
following:
   (1) Appoint a special master, as described in subdivision (d) of
Section 1524, charged with ensuring that only information necessary
to achieve the objective of the warrant or order is produced or
accessed.
   (2) Require that any information obtained through the execution of
the warrant or order that is unrelated to the objective of the
warrant be destroyed as soon as feasible after the termination of the
current investigation and any related investigations or proceedings.

   (f) A service provider may voluntarily disclose electronic
communication information or subscriber information when that
disclosure is not otherwise prohibited by state or federal law.
   (g) If a government entity receives electronic communication
information voluntarily provided pursuant to subdivision (f), it
shall destroy that information within 90 days unless one or more of
the following circumstances apply:
   (1) The entity has or obtains the specific consent of the sender
or recipient of the electronic communications about which information
was disclosed.
   (2) The entity obtains a court order authorizing the retention of
the information. A court shall issue a retention order upon a finding
that the conditions justifying the initial voluntary disclosure
persist, in which case the court shall authorize the retention of the
information only for so long as those conditions persist, or there
is probable cause to believe that the information constitutes
evidence that a crime has been committed.
   (3) The entity reasonably believes that the information relates to
child pornography and the information is retained as part of a
multiagency database used in the investigation of child pornography
and related crimes.
   (h) If a government entity obtains electronic information pursuant
to an emergency involving danger of death or serious physical injury
to a person, that requires access to the electronic information
without delay, the entity shall, within three days after obtaining
the electronic information, file with the appropriate court an
application for a warrant or order authorizing obtaining the
electronic information or a motion seeking approval of the emergency
disclosures that shall set forth the facts giving rise to the
emergency, and if applicable, a request supported by a sworn
affidavit for an order delaying notification under paragraph (1) of
subdivision (b) of Section 1546.2. The court shall promptly rule on
the application or motion and shall order the immediate destruction
of all information obtained, and immediate notification pursuant to
subdivision (a) of Section 1546.2 if such notice has not already been
given, upon a finding that the facts did not give rise to an
emergency or upon rejecting the warrant or order application on any
other ground.
   (i) This section does not limit the authority of a government
entity to use an administrative, grand jury, trial, or civil
discovery subpoena to do any of the following:
   (1) Require an originator, addressee, or intended recipient of an
electronic communication to disclose any electronic communication
information associated with that communication.
   (2) Require an entity that provides electronic communications
services to its officers, directors, employees, or agents for the
purpose of carrying out their duties, to disclose electronic
communication information associated with an electronic communication
to or from an officer, director, employee, or agent of the entity.
   (3) Require a service provider to provide subscriber information.
   (j) This section does not limit the authority of the Public
Utilities Commission or the State Energy Resources Conservation and
Development Commission to obtain energy or water supply and
consumption information pursuant to the powers granted to them under
the Public Utilities Code or the Public Resources Code and other
applicable state laws.
  SEC. 5.  Section 3401 of the Public Resources Code is amended to
read:
   3401.  (a) The proceeds of charges levied, assessed, and collected
pursuant to this article upon the properties of every person
operating or owning an interest in the production of a well shall be
used exclusively for the support and maintenance of the department
charged with the supervision of oil and gas operations, for the State
Water Resources Control Board and the regional water quality control
boards for their activities related to oil and gas operations that
may affect water resources, and for the support of the State Air
Resources Board and the Office of Environmental Health Hazard
Assessment for their activities related to oil and gas operations
that may affect air quality, public health, or public safety.
   (b) Notwithstanding subdivision (a), the proceeds of charges
levied, assessed, and collected pursuant to this article upon the
properties of every person operating or owning an interest in the
production of a well undergoing a well stimulation treatment, may be
used by public entities, subject to appropriation by the Legislature,
for all costs associated with both of the following:
   (1) Well stimulation treatments, including rulemaking and
scientific studies required to evaluate the treatment, inspections,
any air and water quality sampling, monitoring, and testing performed
by public entities.
   (2) The costs of the State Water Resources Control Board and the
regional water quality control boards in carrying out their
responsibilities pursuant to Section 3160 and Section 10783 of the
Water Code.
  SEC. 6.  Section 25751 of the Public Resources Code is amended to
read:
   25751.  (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
   (b) The Emerging Renewable Resources Account is hereby established
within the Renewable Resources Trust Fund. Notwithstanding Section
13340 of the Government Code, the moneys in the account are hereby
continuously appropriated to the commission without regard to fiscal
years for the following purposes:
   (1) To close out the award of incentives for emerging technologies
in accordance with former Section 25744, as this law existed prior
to the enactment of the Budget Act of 2012, for which applications
had been approved before the enactment of the Budget Act of 2012.
   (2) To close out consumer education activities in accordance with
former Section 25746, as this law existed prior to the enactment of
the Budget Act of 2012.
   (3) To provide funding for the New Solar Homes Partnership
pursuant to paragraph (3) of subdivision (e) of Section 2851 of the
Public Utilities Code.
   (c) The Controller shall provide to the commission funds pursuant
to the continuous appropriation in, and for purposes specified in,
subdivision (b).
   (d) The Controller shall provide to the commission moneys from the
fund sufficient to satisfy all contract and grant awards that were
made by the commission pursuant to former Sections 25744 and 25746,
and Chapter 8.8 (commencing with Section 25780), as these laws
existed prior to the enactment of the Budget Act of 2012.
   (e) If the Public Utilities Commission determines that the
commission should be the third-party administrator for the New Solar
Homes Partnership Program pursuant to subparagraph (A) of paragraph
(3) of subdivision (e) of Section 2851 of the Public Utilities Code,
any moneys made available to fund the New Solar Homes Partnership
Program shall be deposited into the Emerging Renewable Resources
Account of the Renewable Resource Trust Fund and used for this
purpose.
  SEC. 7.  Section 388 of the Public Utilities Code is amended to
read:
   388.  (a) Notwithstanding any other provision of law, a state
agency may enter into an energy savings contract with a qualified
energy service company for the purchase or exchange of thermal or
electrical energy or water, or to acquire energy efficiency or water
conservation services, or both energy efficiency and water
conservation services for a term not exceeding 35 years, at rates and
upon those terms approved by the agency.
   (b) The Department of General Services or any other state or local
agency intending to enter into an energy savings contract or a
contract for an energy retrofit project may establish a pool of
qualified energy service companies based on qualifications,
experience, pricing, or other pertinent factors. Energy service
contracts for individual projects undertaken by any state or local
agency may be awarded through a competitive selection process to
individuals or firms identified in the pool. The pool of qualified
energy service companies and contractors shall be reestablished at
least every two years or shall expire.
   (c) For purposes of this section, the following definitions apply:

   (1) (A) "Energy retrofit project" means a project for which the
state or local agency works with a qualified energy service company
to identify, develop, design, and implement energy conservation
measures in existing facilities to reduce energy or water use or make
more efficient use of energy or water.
   (B) "Energy retrofit project" does not include the erection or
installation of a power generation system, a power purchase
agreement, or a project utilizing a site license or lease agreement.
   (2) "Energy savings" means a measured and verified reduction in
fuel, energy, or water consumption when compared to an established
baseline of consumption.
   (3) "Qualified energy service company" means a company with a
demonstrated ability to provide or arrange for building or facility
energy auditors, selection and design of appropriate energy savings
measures, project financing, implementation of these measures, and
maintenance and ongoing measurement of these measures as to ensure
and verify energy savings.
  SEC. 8.  Section 388.2 is added to the Public Utilities Code, to
read:
   388.2.  (a) For purposes of this section, the following
definitions apply:
   (1) "Apprenticeable occupation" means an occupation for which the
chief has approved an apprenticeship program pursuant to Section 3075
of the Labor Code before January 1, 2014.
   (2) "Chief" means the Chief of the Division of Apprenticeship
Standards of the Department of Industrial Relations.
   (3) "Department" means the Department of General Services.
   (4) (A) "Energy retrofit project" means a project for which the
state works with a qualified energy service company to identify,
develop, design, and implement energy conservation measures in
existing facilities to reduce energy or water use or make more
efficient use of energy or water.
   (B) "Energy retrofit project" does not include the erection or
installation of a power generation system, a power purchase
agreement, or a project utilizing a site license or lease agreement.
   (5) "Energy savings" means a measured and verified reduction in
fuel, energy, or water consumption when compared to an established
baseline of consumption.
   (6) "Enforceable commitment" means an enforceable agreement with
the department or state agency that the entity and its subcontractors
at every tier will comply with this section.
   (7) (A) "Qualified energy service company" means a company with a
demonstrated ability to provide or arrange for building or facility
energy auditors, selection and design of appropriate energy savings
measures, project financing, implementation of these measures, and
maintenance and ongoing measurement of these measures as to ensure
and verify energy savings.
   (B) An entity is not a qualified energy service company unless the
entity has provided to the agency an enforceable commitment that the
entity and its subcontractors at every tier will use a skilled and
trained workforce to perform all work on the project or contract that
falls within an apprenticeable occupation in the building and
construction trades.
   (8) "Skilled and trained workforce" means a workforce that meets
all of the following conditions:
   (A) All workers performing work in an apprenticeable occupation in
the building and construction trades are either skilled
journeypersons or apprentices in an apprenticeship program approved
by the chief.
   (B) (i) Except as provided in clause (ii), at least 60 percent of
the skilled journeypersons employed to perform work on a contract or
project by every contractor and each of its subcontractors at every
tier are graduates of an apprenticeship program that was either
approved by the chief pursuant to Section 3075 of the Labor Code, or
an apprenticeship program located outside the state that is approved
pursuant to the apprenticeship regulations adopted by the United
States Secretary of Labor, for the applicable occupation.
   (ii) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief before January 1, 1995, up to
one-half of the requirement in clause (i) may be satisfied by skilled
journeypersons who commenced working in an apprenticeable occupation
before the chief's approval of an apprenticeship program in the
county in which the project is located.
   (iii) The requirements of this subparagraph are satisfied if, in a
particular calendar month, either of the following is true:
   (I) The percentage of the skilled journeypersons employed by the
contractor or subcontractor to perform work on the contract or
project is at least equal to 60 percent.
   (II) For the hours of work performed by skilled journeypersons
employed by the contractor or subcontractor on the contract or
project, the percentage of hours performed by skilled journeypersons
is at least equal to 60 percent.
   (iv) This subparagraph does not apply to a contractor or
subcontractor if, during the calendar month, the contractor or
subcontractor employs skilled journeypersons to perform fewer than 10
hours of work on the contract or project.
   (v) This subparagraph does not apply to a subcontractor if both of
the following are true:
   (I) The subcontractor is not a listed subcontractor in the
investment grade audit or a substitute for a listed subcontractor.
   (II) The subcontract does not exceed 1/2 of 1 percent of the price
of the prime contract.
   (9) "Skilled journeyperson" means a worker who is being paid at
least the prevailing rate or per diem wages published by the
Department of Industrial Relations for the occupation and geographic
area and who either:
   (A) Graduated from an apprenticeship program that was either
approved by the chief pursuant to Section 3075 of the Labor Code, or
an apprenticeship program located outside the state that is approved
pursuant to the apprenticeship regulations adopted by the United
States Secretary of Labor, for the applicable occupation.
   (B) Has at least as many hours of on-the-job training experience
in the applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.
   (b) (1) The department or any other state agency intending to
enter into an energy savings contract for an energy retrofit project
may establish one or more pools of qualified energy services
companies based on qualification, experience, pricing, or other
pertinent factors. The department or state agency may select a
qualified energy service company identified in the pool for a
contract for a specific energy retrofit project on a rotational
basis.
   (2) The department or state agency has the exclusive authority to
reject the plan or proposal of a qualified energy service company
selected for an energy retrofit project pursuant to paragraph (1) and
may continue the selection process until a satisfactory proposal is
identified.
   (c) (1) A qualified energy service company working on an energy
retrofit project shall submit to the department or state agency, as
appropriate, on a monthly basis, a report demonstrating compliance
with this section.
                                                             (2) If
the qualified energy service company fails to submit the monthly
report or submits a report that is incomplete, the department or
state agency, as appropriate, shall withhold further payments until a
complete report is submitted.
   (3) The monthly report is a public record under the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and shall be available
for public inspection.
   (d) Prior to performing an investment grade audit, the department
or other state agency shall provide a public notification that
includes the project location, assigned energy services company, and
the appropriate contact information on the department's Internet Web
site.
   (e) Subparagraph (B) of paragraph (7) of subdivision (a) and
subdivision (c) do not apply if either of the following applies:
   (1) The department or state agency, as appropriate, has entered
into a project labor agreement, as defined in paragraph (1) of
subdivision (b) of Section 2500 of the Public Contract Code, that
will bind all contractors and subcontractors performing work on the
project or contract and the entity agrees to be bound by that project
labor agreement.
   (2) The entity has entered into a project labor agreement, as
defined in paragraph (1) of subdivision (b) of Section 2500 of the
Public Contract Code, that will bind the entity and all contractors
and subcontractors at every tier performing the project or contract.
   (f) Subparagraph (B) of paragraph (7) of subdivision (a) and
subdivision (c) do not apply to work performed by the California
Conservation Corps that is nontrades and nonconstruction related.
   (g) This section is not intended to waive other terms and
conditions applicable to a state contract for an energy retrofit
project.
   (h) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
  SEC. 9.  Section 399.20 of the Public Utilities Code is amended to
read:
   399.20.  (a) It is the policy of this state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
   (b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, an electrical corporation
that meets all of the following criteria:
   (1) Has an effective capacity of not more than three megawatts.
   (2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
   (3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
   (4) Is an eligible renewable energy resource.
   (c) Every electrical corporation shall file with the commission a
standard tariff for electricity purchased from an electric generation
facility. The commission may modify or adjust the requirements of
this section for any electrical corporation with less than 100,000
service connections, as individual circumstances merit.
   (d) (1) The tariff shall provide for payment for every
kilowatthour of electricity purchased from an electric generation
facility for a period of 10, 15, or 20 years, as authorized by the
commission. The payment shall be the market price determined by the
commission pursuant to paragraph (2) and shall include all current
and anticipated environmental compliance costs, including, but not
limited to, mitigation of emissions of greenhouse gases and air
pollution offsets associated with the operation of new generating
facilities in the local air pollution control or air quality
management district where the electric generation facility is
located.
   (2) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with an electric generation facility, in consideration of
the following:
   (A) The long-term market price of electricity for fixed price
contracts, determined pursuant to an electrical corporation's general
procurement activities as authorized by the commission.
   (B) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities.
   (C) The value of different electricity products including
baseload, peaking, and as-available electricity.
   (3) The commission may adjust the payment rate to reflect the
value of every kilowatthour of electricity generated on a
time-of-delivery basis.
   (4) The commission shall ensure, with respect to rates and
charges, that ratepayers that do not receive service pursuant to the
tariff are indifferent to whether a ratepayer with an electric
generation facility receives service pursuant to the tariff.
   (e) An electrical corporation shall provide expedited
interconnection procedures to an electric generation facility located
on a distribution circuit that generates electricity at a time and
in a manner so as to offset the peak demand on the distribution
circuit, if the electrical corporation determines that the electric
generation facility will not adversely affect the distribution grid.
The commission shall consider and may establish a value for an
electric generation facility located on a distribution circuit that
generates electricity at a time and in a manner so as to offset the
peak demand on the distribution circuit.
   (f) (1) An electrical corporation shall make the tariff available
to the owner or operator of an electric generation facility within
the service territory of the electrical corporation, upon request, on
a first-come-first-served basis, until the electrical corporation
meets its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under this section and
Section 387.6. The proportionate share shall be calculated based on
the ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
   (2) By June 1, 2013, the commission shall, in addition to the 750
megawatts identified in paragraph (1), direct the electrical
corporations to collectively procure at least 250 megawatts of
cumulative rated generating capacity from developers of bioenergy
projects that commence operation on or after June 1, 2013. The
commission shall, for each electrical corporation, allocate shares of
the additional 250 megawatts based on the ratio of each electrical
corporation's peak demand compared to the total statewide peak
demand. In implementing this paragraph, the commission shall do all
of the following:
   (A) Allocate the 250 megawatts identified in this paragraph among
the electrical corporations based on the following categories:
   (i) For biogas from wastewater treatment, municipal organic waste
diversion, food processing, and codigestion, 110 megawatts.
   (ii) For dairy and other agricultural bioenergy, 90 megawatts.
   (iii) For bioenergy using byproducts of sustainable forest
management, 50 megawatts. Allocations under this category shall be
determined based on the proportion of bioenergy that sustainable
forest management providers derive from sustainable forest management
in fire threat treatment areas, as designated by the Department of
Forestry and Fire Protection.
   (B) Direct the electrical corporations to develop standard
contract terms and conditions that reflect the operational
characteristics of the projects, and to provide a streamlined
contracting process.
   (C) Coordinate, to the maximum extent feasible, any incentive or
subsidy programs for bioenergy with the agencies listed in
subparagraph (A) of paragraph (3) in order to provide maximum
benefits to ratepayers and to ensure that incentives are used to
reduce contract prices.
   (D) The commission shall encourage gas and electrical corporations
to develop and offer programs and services to facilitate development
of in-state biogas for a broad range of purposes.
   (3) (A) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, the State Air
Resources Board, the Department of Forestry and Fire Protection, the
Department of Food and Agriculture, and the Department of Resources
Recycling and Recovery, may review the allocations of the 250
additional megawatts identified in paragraph (2) to determine if
those allocations are appropriate.
   (B) If the commission finds that the allocations of the 250
additional megawatts identified in paragraph (2) are not appropriate,
the commission may reallocate the 250 megawatts among the categories
established in subparagraph (A) of paragraph (2).
   (4) (A) A project identified in clause (iii) of subparagraph (A)
of paragraph (2) is eligible, in regards to interconnection, for the
tariff established to implement paragraph (2) or to participate in
any program or auction established to implement paragraph (2), if it
meets at least one of the following requirements:
   (i) The project is already interconnected.
   (ii) The project has been found to be eligible for interconnection
pursuant to the fast track process under the relevant tariff.
   (iii) A system impact study or other interconnection study has
been completed for the project under the relevant tariff, and there
was no determination in the study that, with the identified
interconnection upgrades, if any, a condition specified in paragraph
(2), (3), or (4) of subdivision (n) would exist. Such a project is
not required to have a pending, active interconnection application to
be eligible.
   (B) For a project meeting the eligibility requirements pursuant to
clause (iii) of subparagraph (A) of this paragraph, both of the
following apply:
   (i) The project is hereby deemed to be able to interconnect within
the required time limits for the purpose of determining eligibility
for the tariff.
   (ii) The project shall submit a new application for
interconnection within 30 days of execution of a standard contract
pursuant to the tariff if it does not have a pending, active
interconnection application or a completed interconnection. For those
projects, the time to achieve commercial operation shall begin to
run from the date when the new system impact study or other
interconnection study is completed rather than from the date of
execution of the standard contract.
   (5) For the purposes of this subdivision, "bioenergy" means biogas
and biomass.
   (g) The electrical corporation may make the terms of the tariff
available to owners and operators of an electric generation facility
in the form of a standard contract subject to commission approval.
   (h) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the electrical
corporation's renewables portfolio standard annual procurement
targets for purposes of paragraph (1) of subdivision (b) of Section
399.15.
   (i) The physical generating capacity of an electric generation
facility shall count toward the electrical corporation's resource
adequacy requirement for purposes of Section 380.
   (j) (1) The commission shall establish performance standards for
any electric generation facility that has a capacity greater than one
megawatt to ensure that those facilities are constructed, operated,
and maintained to generate the expected annual net production of
electricity and do not impact system reliability.
   (2) The commission may reduce the three megawatt capacity
limitation of paragraph (1) of subdivision (b) if the commission
finds that a reduced capacity limitation is necessary to maintain
system reliability within that electrical corporation's service
territory.
   (k) (1) Any owner or operator of an electric generation facility
that received ratepayer-funded incentives in accordance with Section
379.6 of this code, or with Section 25782 of the Public Resources
Code, and participated in a net metering program pursuant to Sections
2827, 2827.9, and 2827.10 of this code prior to January 1, 2010,
shall be eligible for a tariff or standard contract filed by an
electrical corporation pursuant to this section.
   (2) In establishing the tariffs or standard contracts pursuant to
this section, the commission shall consider ratepayer-funded
incentive payments previously received by the generation facility
pursuant to Section 379.6 of this code or Section 25782 of the Public
Resources Code. The commission shall require reimbursement of any
funds received from these incentive programs to an electric
generation facility, in order for that facility to be eligible for a
tariff or standard contract filed by an electrical corporation
pursuant to this section, unless the commission determines ratepayers
have received sufficient value from the incentives provided to the
facility based on how long the project has been in operation and the
amount of renewable electricity previously generated by the facility.

   (3) A customer that receives service under a tariff or contract
approved by the commission pursuant to this section is not eligible
to participate in any net metering program.
   (l) An owner or operator of an electric generation facility
electing to receive service under a tariff or contract approved by
the commission shall continue to receive service under the tariff or
contract until either of the following occurs:
   (1) The owner or operator of an electric generation facility no
longer meets the eligibility requirements for receiving service
pursuant to the tariff or contract.
   (2) The period of service established by the commission pursuant
to subdivision (d) is completed.
   (m) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the electrical corporation that receives the request shall
post a copy of the request on its Internet Web site. The information
posted on the Internet Web site shall include the name of the city in
which the facility is located, but information that is proprietary
and confidential, including, but not limited to, address information
beyond the name of the city in which the facility is located, shall
be redacted.
   (n) An electrical corporation may deny a tariff request pursuant
to this section if the electrical corporation makes any of the
following findings:
   (1) The electric generation facility does not meet the
requirements of this section.
   (2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
   (3) The electric generation facility does not meet all applicable
state and local laws and building standards and utility
interconnection requirements.
   (4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.
   (o) Upon receiving a notice of denial from an electrical
corporation, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the commission.
   (p) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an
inspection and maintenance report to the electrical corporation at
least once every other year. The inspection and maintenance report
shall be prepared at the owner's or operator's expense by a
California-licensed contractor who is not the owner or operator of
the electric generation facility. A California-licensed electrician
shall perform the inspection of the electrical portion of the
generation facility.
   (q) The contract between the electric generation facility
receiving the tariff and the electrical corporation shall contain
provisions that ensure that construction of the electric generating
facility complies with all applicable state and local laws and
building standards, and utility interconnection requirements.
   (r) (1) All construction and installation of facilities of the
electrical corporation, including at the point of the output meter or
at the transmission or distribution grid, shall be performed only by
that electrical corporation.
   (2) All interconnection facilities installed on the electrical
corporation's side of the transfer point for electricity between the
electrical corporation and the electrical conductors of the electric
generation facility shall be owned, operated, and maintained only by
the electrical corporation. The ownership, installation, operation,
reading, and testing of revenue metering equipment for electric
generating facilities shall only be performed by the electrical
corporation.
  SEC. 10.  The Legislature finds and declares all of the following:
   (a) California imports 91 percent of its natural gas, which is
responsible for 25 percent of the state's emissions of greenhouse
gases.
   (b) California made a commitment to address climate change with
the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code) and
the adoption of a comprehensive strategy to reduce emissions of
short-lived climate pollutants (Chapter 4.2 (commencing with Section
39730) of Part 2 of Division 26 of the Health and Safety Code). For
California to meet its goals for reducing emissions of greenhouse
gases and short-lived climate pollutants, the state must reduce
emissions from the natural gas sector and increase the production and
distribution of renewable and low-carbon gas supplies.
   (c) Biomethane is gas generated from organic waste through
anaerobic digestion, gasification, pyrolysis, or other conversion
technology that converts organic matter to gas. Biomethane may be
produced from multiple sources, including agricultural waste, forest
waste, landfill gas, wastewater treatment byproducts, and diverted
organic waste.
   (d) Biomethane provides a sustainable and clean alternative to
natural gas. If 10 percent of California's natural gas use were to be
replaced with biomethane use, emissions of greenhouse gases would be
reduced by tens of millions of metric tons of carbon dioxide
equivalent every year.
   (e) Investing in biomethane would create cobenefits, including
flexible generation of electricity from a renewable source that is
available 24 hours a day, reduction of fossil fuel use, reduction of
air and water pollution, and new jobs.
   (f) Biomethane can also be used as transportation fuel or injected
into natural gas pipelines for other uses. The most appropriate use
of biomethane varies depending on the source, proximity to existing
natural gas pipeline injection points or large vehicle fleets, and
the circumstances of existing facilities.
   (g) The biomethane market has been slow to develop in California
because the collection, purification, and pipeline injection of
biomethane can be costly.
   (h) Biomethane is poised to play a key role in future natural gas
and hydrogen fuel markets as a blendstock that can significantly
reduce the carbon footprint of these two fossil-based alternative
fuels.
   (i) Biomethane is one of the most promising alternative vehicle
fuels because it generates the least net emissions of greenhouse
gases. According to the low-carbon fuel standard regulations
(Subarticle 7 (commencing with Section 95480) of Article 4 of
Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations) adopted by the State Air Resources
Board, vehicles running on biomethane generate significantly lower
emissions of greenhouse gases than vehicles running on electricity or
fossil fuel-derived hydrogen.
   (j) The California Council on Science and Technology was
established by California academic research institutions, including
the University of California, the University of Southern California,
the California Institute of Technology, Stanford University, and the
California State University, and was organized as a nonprofit
corporation pursuant to Section 501(c)(3) of the Internal Revenue
Code, in response to Assembly Concurrent Resolution No. 162
(Resolution Chapter 148 of the Statutes of 1988).
   (k) The California Council on Science and Technology was uniquely
established at the request of the Legislature for the specific
purpose of offering expert advice to state government on public
policy issues significantly related to science and technology.
   (l) It is in the public's interests, and in the interest of
ratepayers of the state's gas corporations, that the policies and
programs adopted by the Public Utilities Commission be guided by the
best science reasonably available.
  SEC. 11.  Section 784.1 is added to the Public Utilities Code, to
read:
   784.1.  (a) The Legislature requests that the California Council
on Science and Technology undertake and complete a study analyzing
the regional and gas corporation specific issues relating to minimum
heating value and maximum siloxane specifications for biomethane
before it can be injected into common carrier gas pipelines,
including those specifications adopted in Sections 4.4.3.3 and 4.4.4
of commission Decision 14-01-034 (January 16, 2014), Decision
Regarding the Biomethane Implementation Tasks in Assembly Bill 1900.
The study shall consider and evaluate other states' standards, the
source of biomethane, the dilution of biomethane after it is injected
into the pipeline, the equipment and technology upgrades required to
meet the minimum heating value specifications, including the impacts
of those specifications on the cost, volume of biomethane sold,
equipment operation, and safety. The study shall also consider
whether different sources of biogas should have different standards
or if all sources should adhere to one standard for the minimum
heating value and maximum permissible level of siloxanes. The study
shall develop the best science reasonably available and not merely be
a literature review. In order to meet the state's goals for reducing
emissions of greenhouse gases and short-lived climate pollutants and
the state's goals for promoting the use of renewable energy
resources in place of burning fossil fuels, the California Council on
Science and Technology, if it agrees to undertake and complete the
study, shall complete the study within nine months of entering into a
contract to undertake and complete the study.
   (b) (1) If the California Council on Science and Technology agrees
to undertake and complete the study pursuant to subdivision (a), the
commission shall require each gas corporation operating common
carrier pipelines in California to proportionately contribute to the
expenses to undertake the study pursuant to Sections 740 and 740.1.
The commission may modify the monetary incentives made available
pursuant to commission Decision 15-06-029 (June 11, 2015), Decision
Regarding the Costs of Compliance with Decision 14-01-034 and
Adoption of Biomethane Promotion Policies and Program, to allocate
some of the moneys that would be made available for incentives to
instead be made available to pay for the costs of the study so as to
not further burden ratepayers with additional expense.
   (2) The commission's authority pursuant to paragraph (1) shall
apply notwithstanding whether the gas corporation has proposed the
program pursuant to Section 740.1.
   (c) If the California Council on Science and Technology agrees to
undertake and complete the study pursuant to subdivision (a), within
six months of its completion, the commission shall reevaluate its
requirements and standards adopted pursuant to Section 25421 of the
Health and Safety Code relative to the requirements and standards for
biomethane to be injected into common carrier pipelines and, if
appropriate, change those requirements and standards or adopt new
requirements and standards, giving due deference to the conclusions
and recommendations made in the study by the California Council on
Science and Technology.
  SEC. 12.  Section 2834 of the Public Utilities Code is repealed.
  SEC. 13.  (a) By March 31, 2017, the Public Utilities Commission
shall report to the relevant policy and fiscal committees of the
Legislature on its business process inventory efforts. The report
shall include documentation and measurement of commission processes,
including administrative and monitoring processes shaped by law and
judicial review, program performance and communications pursuant to
the commission's rules and procedures, and internal processes related
to administration and managing human resources.
   (b) The report shall be submitted in compliance with Section 9795
of the Government Code.
   (c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on April 1, 2021.
  SEC. 14.  (a) By March 31, 2017, the Public Utilities Commission
shall report to the relevant policy and fiscal committees of the
Legislature on options to locate operations and staff outside of the
commission's San Francisco headquarters. The report shall explore
options for leveraging additional facilities in areas of the state,
including Sacramento, that would allow the commission to collaborate
with other state entities and provide staff more opportunities for
training, career development, and exchange placements with other
state entities. The report shall do both of the following:
   (1) Consider categories of operations in different offices.
   (2) Analyze recruitment and retention, salary disparities by
location based on duty statements, and costs associated with using
locations outside of San Francisco with no, or minimal, disruption of
current commission employees.
   (b) The commission shall conduct one or more public workshops to
obtain suggestions, concerns, ideas, and comments from stakeholders
and interested members of the public in furtherance of the purpose of
the report.
   (c) (1) The report shall be submitted in compliance with Section
9795 of the Government Code.
   (2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on April 1, 2021.
  SEC. 15.  The sum of two hundred seventy-five thousand dollars
($275,000) is hereby appropriated from the Appliance Efficiency
Enforcement Subaccount in the Energy Resources Programs Account to
the State Energy Resources Conservation and Development Commission to
support the Title 20 Appliance Efficiency Standards Compliance
Assistance and Enforcement Program.
  SEC. 16.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because
             this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
  SEC. 17.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.