BILL NUMBER: AB 234	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 16, 2009
	AMENDED IN SENATE  JUNE 9, 2009
	AMENDED IN ASSEMBLY  MAY 18, 2009
	AMENDED IN ASSEMBLY  MAY 6, 2009
	AMENDED IN ASSEMBLY  APRIL 23, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 5, 2009

    An act to add Chapter 5.6 (commencing with Section 25460)
to Division 15 of the Public Resources Code, relating to energy, and
declaring the urgency thereof, to take effect immediately. 
 An act to amend Sections 25450 and 25450.1 of the Public
Resources Code, relating to energy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 234, as amended, Huffman. Energy: water use and energy
efficiency projects: federal stimulus funds. 
   Existing law requires the Public Utilities Commission, State
Energy Resources Conservation and Development Commission (Energy
Commission), and the Department of Water Resources to undertake
various programs related to energy and water conservation.  

   This bill would require that any moneys received by the state
pursuant to the federal American Recovery and Reinvestment Act of
2009 that are directed for energy-related activities, programs, or
projects, be administered by the state's energy and water agencies,
and provide that those activities, programs, or projects should
adhere to the principle of accountability while also adhering to
existing state policies to promote energy efficiency, promote water
conservation, promote the development and use of renewable energy
resources, protect the environment, and provide green job training.
 
   Existing law requires the Energy Commission to administer funds
allocated to and received by the state pursuant to the federal Energy
Independence and Security Act of 2007.  
   This bill would additionally require the Energy Commission to
administer funds allocated and received by the state pursuant to the
American Recovery and Reinvestment Act of 2009.  
   Existing law establishes various programs to provide financial
assistance to public and private entities to improve their energy
efficiency.  
   This bill would require the State Energy Resources Conservation
and Development Commission, as a part of the implementation of
funding received under the federal American Recovery and Reinvestment
Act of 2009, pursuant to the federal State Energy Program and the
federal Energy Efficiency and Conservation Block Grant Program, to
coordinate with the Department of Water Resources and the State Water
Resources Control Board to identify opportunities to fund energy
efficiency actions that may also result in reduced water use. The
bill would impose requirements for the commission's guidelines for
disbursement of the federal stimulus funds. The bill would require
that water and energy efficiency programs and projects proceed only
to the extent they do not impair the commission's ability to meet the
federal deadlines for expenditure of federal stimulus funds provided
by the act pursuant to the 2 specified federal programs. 

   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  2/3   majority  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


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

   SECTION 1.    Any moneys received pursuant to the
federal American Recovery and Reinvestment Act of 2009 (Public Law
111-5) that are directed for energy-related activities, programs, or
projects, including energy efficiency and renewable energy programs,
projects for the building of electrical transmission lines, and
activities to create conservation or "green-collar" jobs, shall be
administered by the appropriate state energy and water agencies and
should adhere to the principle of accountability while also adhering
to existing state policies to promote energy efficiency, including
green building practices, promote water conservation, promote the
development and use of renewable energy resources, protect the
environment, and provide green job training. 
   SEC. 2.    Section 25450 of the   Public
Resources Code   is amended to read: 
   25450.  (a) The Legislature finds and declares all of the
following: 
   (1) The cost of energy in California is increasing and creating
greater demands on local governments' operating budgets. 

   (2) 
    (1)    The  100th   110th
 Congress enacted the Energy Independence and Security Act of
2007 (42 U.S.C. Sec. 17001 et seq.)  that provides 
 that establishes an energy efficiency and conservation block
grant program to provide  grants to eligible entities, including
states  and local governments  , to  help them 
reduce fossil fuel emissions, improve energy efficiency, and reduce
overall energy  use   consumption  .

   (3) 
    (2)    Section 545(c)(1)(A) of the Energy
Independence and Security Act of 2007 (42 U.S.C. Sec. 17155(c)(1)(A))
mandates that states receiving block grants under the act use not
less than 60 percent of the grant amount to provide subgrants to
local governments that are not eligible entities for the purposes of
the act. 
   (3) The 111th Congress enacted the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) that appropriates funds
for energy efficiency and conservation, water conservation, home
weatherization, green workforce development, and renewable energy.

   (b) It is the intent of the Legislature  to fully
  that the state achieve the purposes and 
implement the requirements for  these  energy and
conservation block  grants provided pursuant to the Energy
Independence and Security Act of 2007 and that the funds allocated to
the state pursuant to that act be administered by the commission
  grant programs in the most expedient manner possible.
Moreover, to the extent possible without causing undue delay, the
commission shall look to the Energy Independence and Security Act of
2007 and the American Recovery and Reinvestment Act of 2009 programs
and make policy decisions that leverage and maximize the use of these
dollars, including, but not limited to, the areas of energy
efficiency, renewable energy, water   efficiency,
weatherization, and green workforce development  . 
   (c) It is the intent of the Legislature to strive to maximize the
opportunity to allocate funds toward the most cost-effective energy
efficiency projects, and when allocating funds toward administration,
the commission should use the 5-percent allowable administrative
expenses as a ceiling and improve efficiencies to allocate less than
the allowable amount. 
   SEC. 3.    Section 25450.1 of the   Public
Resources Code   is amended to read: 
   25450.1.   Funds   (a)    
The commission shall administer funds  allocated to and received
by the state pursuant to the Energy Independence and Security Act of
2007 (42 U.S.C. Sec. 17001 et seq.)  shall be administered
by the commission   and the American Recovery and
Reinvestment Act of 2009 (Public Law   111-5)  . 
   (b) The commission may award grants from funds received pursuant
to the Energy Independence and Security Act of 2007 and the American
Recovery and Reinvestment Act of 2009, as well as enter into
contracts to perform functions required to promptly award energy
efficiency and conservation block grants.  
  SECTION 1.    Chapter 5.6 (commencing with Section
25460) is added to Division 15 of the Public Resources Code, to
read:
      CHAPTER 5.6.  WATER USE AND ENERGY EFFICIENCY ASSISTANCE


   25460.  The Legislature finds and declares all of the following:
   (a) The commission is expected to receive hundreds of millions of
dollars from the federal American Recovery and Reinvestment Act of
2009 (Public Law 111-5) for energy-related activities including
energy efficiency programs and projects.
   (b) Water use requires significant amounts of energy.
Approximately one-fifth of the electricity and one-third of the
nonpowerplant natural gas consumed in the state are associated with
water delivery, treatment, and use.
   (c) Greenhouse gas emissions can be reduced if we move, treat, and
use water more efficiently.
   (d) The Public Utilities Commission and the commission have
researched the energy saving potential associated with water use
efficiency programs.
   25460.5.  For the purposes of this chapter, the following terms
have the following meaning:
   (a) "Federal stimulus funds" means moneys received by the state
under the federal American Recovery and Reinvestment Act of 2009
(Public Law 111-5), pursuant to the federal State Energy Program and
the federal Energy Efficiency and Conservation Block Grant Program.
   (b) "Local water entity" means a city, county, special district,
water corporation, or a mutual water company that has as its primary
function the treatment or distribution of water or groundwater
replenishment of water for municipal, industrial, or agricultural
purposes.
   25461.  (a) The Legislature, by enacting this chapter, intends to
establish guidance for implementation of federal stimulus funds, in
order to maximize the benefits and encourage the integration of water
and energy efficiency programs.
   (b) As part of the administration of the federal stimulus funds
received by the commission, the commission shall coordinate with the
Department of Water Resources and the State Water Resources Control
Board to identify opportunities to fund energy efficiency actions
that may also result in reduced water use. Coordination may include,
but is not limited to, sharing information on areas to target,
prioritizing actions, and advising on implementation.
   (c) To the extent authorized by federal law, the commission's
guidelines for disbursement of the federal stimulus funds shall do
all of the following:
   (1) Include both of the following as eligible projects:
   (A) Water use efficiency and water recycling projects that also
provide energy savings. These projects may include, but shall not be
limited to, implementation of water conservation measures, including
building and landscape retrofits, diversion or collection of
stormwater for groundwater recharge, or the installation, expansion,
or improvement of recycled water systems for agricultural, municipal,
or industrial purposes.
   (B) Job training programs, including, but not limited to, water
and energy efficiency training for plumbers, landscape professionals,
and agricultural irrigation managers.
   (2) Include in the calculation of energy savings for water use
efficiency and recycling projects, the energy savings associated with
the reduced treatment, reduced distribution and pumping, and reduced
urban or agricultural use of water.
   (3) Provide opportunities for water and energy efficiency projects
to be cost-shared with local water entities.
   (4) Include local water entities as eligible applicants.
   (5) Allocate at least one-half of the federal energy efficiency
stimulus funds received as grants.
   (d) Water and energy efficiency programs and projects shall
proceed only to the extent they do not impair the commission's
ability to meet the federal deadlines for expenditure of federal
stimulus funds.
   (e) This section applies only to federal stimulus funds received
under the federal American Recovery and Reinvestment Act of 2009
(Public Law 111-5), pursuant to the federal State Energy Program and
the federal Energy Efficiency and Conservation Block Grant Program.
   25462.  This chapter does not imply that spending energy
efficiency funds on water efficiency programs should be done with
nonstimulus, ratepayer funds.  
  SEC. 2.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   To expedite the use of federal stimulus funds received under the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5)
pursuant to the federal State Energy Program and the federal Energy
Efficiency and Conservation Block Grant Program for energy efficiency
actions that also may result in reduced water use, and to maximize
the benefits and encourage the integration of water and energy
efficiency programs for the protection of the public health, safety,
and the environment, it is necessary for this measure to take effect
immediately.