BILL ANALYSIS Ó SB 840 Page 1 SENATE THIRD READING SB 840 (Committee on Budget and Fiscal Review) As Amended June 14, 2016 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE: Vote not relevant SUMMARY: Contains statutory changes related to energy necessary to implement the 2016-17 Budget package. Specifically this bill: 1)Defines "oil," as currently specified for under the Elder California Pipeline Safety Act of 1981, to mean petroleum, petroleum products, anhydrous ammonia, and ethanol. 2) Requires the State Fire Marshall to provide to the Legislature an annual report containing specified information regarding the inspection of intrastate pipelines that transport hazardous materials. 3)Repeals the requirement that $1 million be transferred annually from the Public Interest Research, Development, and Demonstration Fund to the Alternative and Renewable Fuel and Vehicle Technology Fund. SB 840 Page 2 4)Authorizes the use of Oil, Gas, and Geothermal Administrative Fund (OGGAF) for the State Air Resources Control Board and Office of Environmental Health Hazard Assessment for their activities related to oil and gas operations that may affect air quality, public health and public safety. 5)Establishes interconnection requirements for certain bioenergy projects from which generation capacity is procured, as related to biomass projects. 6) Requires the California Public Utilities Commission (CPUC) to report to the Legislature on options to locate operations and staff outside the commission's San Francisco Headquarters. 7)Requires the CPUC to report on an inventory of agency business processes. 8)Repeals the sunset that would have ended the requirement that investor-owned utilities to offer the Green Tariff Shared Renewable Program to customers. The program will now end when the 600 megawatt cap of the program is reached. 9)Requests a study from the California Council on Science and Technology on technical aspects of biomethane related to its delivery in common carrier pipelines and impacts on end uses of biomethane. 10)Clarifies that a search warrant is not necessary for the collection of data related to smart meters. 11)Authorizes a state department or agency to contract for an energy retrofit program and requires any company performing SB 840 Page 3 this service use apprenticeable occupations in building and construction trades. 12)Clarifies that if the CPUC order a continuation of the New Solar Home Partnership Program and determines that the California Energy Commission be the third party administrator, that funds should be made available for this purpose. FISCAL EFFECT: The bill contains an appropriation of $275,000 to the California Energy Commission for appliance efficiency standards, compliance assistance, and enforcement. COMMENTS: This energy trailer bill includes provisions agreed to as part of the 2106 budget package. Analysis Prepared by: Christian Griffith / BUDGET / (916)319-2746 FN: 0003449