BILL NUMBER: AB 2561 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2010
INTRODUCED BY Assembly Members Villines and Fuentes
FEBRUARY 19, 2010
An act to amend Section 1250.310 of the Code of Civil Procedure,
to amend Section 14074 of the Corporations Code, to repeal Sections
17925 and 41304 of, and to repeal Part 10.7 (commencing with Section
17910) of Division 1 of Title 1 of, the Education Code, to amend
Sections 32940 and 32942 of the Financial Code, to amend Sections
9100 and 9101 of the Fish and Game Code, to amend Sections 11041,
11550, 11553, 11553.5, 12802.5, 12805, 14450, 14684, 14684.1,
15814.22, 15814.23, 15814.30, 15814.34, 16366.2, 16366.35, 16366.6,
16366.7, 66645, and 66646 of, to amend and renumber Section 15814.25
of, to amend, repeal, and add Sections 12730, 16367.5, and 16367.6
of, to repeal Sections 16366.3, 16366.4, 16366.5, 16366.8, 16366.9,
16367.61, 16367.65, 16367.7, and 16367.8 of, and to repeal and add
Section 16366.1 of, the Government Code, to amend Sections
44270.3, 44271, 44272, 44272.5, 44273, and 44274 of the
Health and Safety Code, to amend Sections 3808, 3810, 3822,
3822.1, 3822.2, 4799.16, 6815.2, 14584, 25000.1, 25005.5, 25104,
25106, 25205, 25207, 25209, 25210, 25211, 25212, 25213, 25214, 25215
25216, 25216.3, 25216.5, 25217.1, 25218, 25218.5, 25220, 25221,
25222, 25223, 25224, 25225, 25226, 25301, 25302, 25303, 25304, 25305,
25305.5, 25306, 25310, 25320, 25321, 25322, 25323, 25324, 25331,
25332, 25333, 25334, 25335, 25336, 25337, 25338, 25339, 25340, 25341,
25354, 25356, 25357, 25358, 25362, 25364, 25366, 25400, 25401,
25401.2, 25401.5, 25401.6, 25401.7, 25401.9, 25402, 25402.1, 25402.2,
25402.3, 25402.4, 25402.5, 25402.5.4, 25402.6, 25402.7, 25402.8,
25402.9, 25403, 25403.5, 25403.8, 25404, 25405.5, 25405.6, 25410.5,
25410.6, 25412, 25413, 25414, 25415, 25416, 25417, 25417.5, 25419,
25420, 25422, 25426, 25433, 25433.5, 25434, 25434.5, 25441, 25442,
25442.5, 25442.7, 25443, 25443.5, 25445, 25449, 25449.1, 25449.2,
25449.3, 25449.4, 25450, 25450.1, 25450.3, 25450.4, 25450.5, 25460,
25461, 25462, 25463, 25470, 25471, 25472, 25473, 25474, 25494, 25495,
25496, 25500, 25500.5, 25501, 25501.7, 25502, 25502.3, 25504,
25504.5, 25505, 25506, 25506.5, 25507, 25508, 25509, 25509.5, 25510,
25511, 25512, 25513, 25513.3, 25514, 25514.3, 25514.5, 25516,
25516.1, 25516.5, 25516.6, 25517, 25518, 25519, 25520, 25520.5,
25521, 25522, 25523, 25524.1, 25524.2, 25524.5, 25525, 25526, 25527,
25528, 25529, 25530, 25531, 25532, 25534, 25534.1, 25534.2, 25537,
25538, 25539, 25540, 25540.1, 25540.2, 25540.3, 25540.4, 25540.5,
25540.6, 25541, 25541.5, 25542, 25543, 25601, 25602, 25603, 25605,
25605.5, 25608, 25609, 25609.5, 25610, 25616, 25617, 25618, 25620,
25620.1, 25620.2, 25620.3, 25620.4, 25620.5, 25620.6, 25620.7,
25620.8, 25620.11, 25630, 25650, 25678, 25679, 25696, 25696.5, 25697,
25700, 25701, 25702, 25703, 25704, 25705, 25720, 25721, 25722,
25722.5, 25722.6, 25722.7, 25723, 25740.5, 25741, 25742, 25743,
25744, 25744.5, 25747, 25748, 25751, 25770, 25771, 25772, 25773,
25782, 25783, 25784, 25802, 25803, 25806, 25900, 25901, 25902, 25910,
25911, 25912, 25942, 25943, 25960, 25961, 25962, 25963, 25964,
25965, 25967, 25968, 26004, 26011.5, 26011.6, and 30404 of, to amend
the heading of Chapter 3 (commencing with Section 25200) of Division
15 of, to amend and repeal Section 25449 of, to add Sections 3806.5,
25104.1, 25104.2, 25205.5, 25207.5, 25219, 25544, and 25545 to, to
add Chapter 3.5 (commencing with Section 25227) to Division 15 of, to
add Chapter 5.10 (commencing with Section 25499) to Division 15 of,
to add and repeal Section 25208 of, to repeal Sections
3805.5, 25217, 25217.5, and 25603.5 of, to repeal Article 3
(commencing with Section 25435) of Chapter 5.3 of Division 15 of, and
to repeal and add Sections 25200, 25201, 25202, 25203, 25204, and
25206 of, the Public Resources Code, to amend Sections 348, 352, 384,
398.3, 398.5, 399.2.5, 399.8, 399.11, 399.12, 399.12.5, 399.13,
399.15, 399.16, 399.17, 454.5, 464, 848.1, 1822, 2774.6, 2827, and
9502 of, to add Sections 322, 345.1, 345.2, and 411 to, to repeal
Sections 346, 350, 360, and 365 of, to repeal Article 2 (commencing
with Section 334) of Chapter 2.3 of Part 1 of Division 1 of, and to
repeal Division 1.5 (commencing with Section 3300) of, the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2561, as amended, Villines. Energy: commission and department.
(1) Existing law establishes the State Energy Resources
Conservation and Development Commission and the Electricity Oversight
Board with jurisdiction related to energy matters. Existing law also
provides the Office of Planning and Research, the Department of
General Services, and the Office of the State Architect with
jurisdiction over certain energy-related matters.
This bill would abolish the State Energy Resources and
Conservation Commission and the Electricity Oversight Board. The bill
would create the Department of Energy, headed by a Secretary of
Energy, and would create the California Energy Board and the
Office of Energy Market Oversight within the department.
The bill would provide for the creation of various divisions and
subdivisions as deemed necessary by the secretary. The secretary
would be appointed by, and hold office at the pleasure of, the
Governor, subject to confirmation by the Senate. The bill would
require the Governor to appoint the initial secretary by January 31,
2011. The bill would authorize the Governor to appoint an Assistant
Secretary of Energy who would serve at the pleasure of the Governor.
The bill would require the department to create a legal subcommittee
comprised of specified members to develop a single statewide position
on litigation concerning energy matters.
The bill would provide that the California Energy Board consists
of the following members: the Secretary of Energy who would be the
chair of the board, 4 members of the public with qualifications, as
specified, appointed by the Governor and subject to confirmation by
the Senate, the Secretary of the Natural Resources Agency, and the
President of the California Public Utilities Commission. The
Secretary of the Natural Resources Agency and the President of the
California Public Utilities Commission would serve as ex officio,
nonvoting members of the board. The bill would specify that the
public members shall serve for a term of 4 years. The bill would
require the board to nominate for appointment by the Governor a
public adviser to the board who would serve for a 3-year term and may
be removed upon the joint concurrence of 4 board members and the
Governor.
The bill would vest the Office of Energy Market Oversight
with the powers, duties, responsibilities, obligations, liabilities,
and jurisdiction transfer certain authority and
duties of the former Electricity Oversight Board
and add to the functions of the office to the
Secretary of Energy and the Department of Energy .
The bill would vest the new department and the California Energy
Board with the powers, duties, responsibilities, obligations,
liabilities, jurisdiction, and rights and privileges of the State
Energy Resources Conservation and Development Commission, as
specified.
The bill would also transfer jurisdiction of certain
energy-related matters from the Office of Planning and Research, the
Department of General Services, and the Office of the State Architect
to the Department of Energy or the California Energy Commission, as
specified.
(2) Existing law requires the Department of Community Services and
Development to administer federal funds for programs to provide
energy assistance to qualified low-income households and to
administer the community services block grant program.
This bill would transfer the above-described duties and
responsibilities of the Department of Community Services and
Development, on and after January 1, 2013, to the Department of
Energy.
(3) Existing law established the Katz Safe Schoolbus Clean Fuel
Efficiency Demonstration Program to assist local educational agencies
in replacing older schoolbuses with schoolbuses meeting federal
safety standards that operate with greater efficiency and fewer
adverse air emissions.
This bill would repeal this program.
(4) Existing law establishes the Small Business Energy Efficient
Refrigeration Program and the State Solar Medallion Passive Design
Competition.
This bill would repeal the program and competition.
(5) The California Consumer Power and Conservation Financing
Authority Act establishes the California Consumer Power and
Conservation Financing Authority and authorizes the authority to take
various actions related to the generation and transmission of
electricity and renewable energy, energy efficiency, and conservation
programs.
This bill would repeal that act.
(6) The bill would make conforming changes in existing law.
(7) The bill would provide that the provisions of the bill are
severable.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1250.310 of the Code of Civil Procedure is
amended to read:
1250.310. The complaint shall contain all of the following:
(a) The names of all plaintiffs and defendants.
(b) A description of the property sought to be taken. The
description may, but is not required to, indicate the nature or
extent of the interest of the defendant in the property.
(c) If the plaintiff claims an interest in the property sought to
be taken, the nature and extent of the interest.
(d) A statement of the right of the plaintiff to take by eminent
domain the property described in the complaint. The statement shall
include:
(1) A general statement of the public use for which the property
is to be taken.
(2) An allegation of the necessity for the taking as required by
Section 1240.030; where the plaintiff is a public entity, a reference
to its resolution of necessity; where the plaintiff is a
quasi-public entity within the meaning of Section 1245.320, a
reference to the resolution adopted pursuant to Article 3 (commencing
with Section 1245.310) of Chapter 4; where the plaintiff is a
nonprofit hospital, a reference to the certificate required by
Section 1260 of the Health and Safety Code; where the plaintiff is a
public utility and relies on a certification of the California Energy
Board or a requirement of the California Energy Board that
development rights be acquired, a reference to that certification or
requirement.
(3) A reference to the statute that authorizes the plaintiff to
acquire the property by eminent domain. Specification of the
statutory authority may be in the alternative and may be
inconsistent.
(e) A map or diagram portraying as far as practicable the property
described in the complaint and showing its location in relation to
the project for which it is to be taken.
SEC. 2. Section 14074 of the Corporations Code is amended to read:
14074. The agency shall enter into an agreement with the
Department of Energy to assist small business owners in reducing
their energy costs through low interest loans and by providing
assistance and information.
SEC. 3. Part 10.7 (commencing with Section 17910) of Division 1 of
Title 1 of the Education Code is repealed.
SEC. 4. Section 17925 of the Education Code is repealed.
SEC. 5. Section 41304 of the Education Code is repealed.
SEC. 6. Section 32940 of the Financial Code is amended to read:
32940. Guidelines for approving loan applications shall be
developed by the board on or before May 1, 1987. In developing those
guidelines, the board shall incorporate the recommendations adopted
by the Department of Energy with respect to technical criteria that
are to be applied to projects receiving loans from the corporation
pursuant to this chapter. The corporation may contract with the
Department of Energy for the purpose of developing technical
guidelines.
SEC. 7. Section 32942 of the Financial Code is amended to read:
32942. Loans shall be approved according to criteria established
by a credit committee, chaired by the chief financial officer of the
corporation or that officer's designee. The other members of the
committee shall be the member of the board appointed by the
Department of Energy and the corporate president.
SEC. 8. Section 9100 of the Fish and Game Code is amended to read:
9100. The Department of Energy shall implement a revolving loan
fund program to assist low-income fishing fleet operators reduce
their energy costs and conserve fuel by providing low-interest loans
to those operators.
SEC. 9. Section 9101 of the Fish and Game Code is amended to read:
9101. Commencing January 1, 1994, and thereafter biennially, the
Department of Energy shall report to the Legislature on the status of
the loan program, including the number and the amounts of loans
made, the amount of loans repaid, and a comparison of the ethnic
background of the loan recipients with the ethnic background of the
low-income fishing fleet operators.
SEC. 10. Section 11041 of the Government Code is amended to read:
11041. (a) Sections 11042 and 11043 do not apply to the Regents
of the University of California, the Trustees of the California State
University, Legal Division of the Department of Transportation,
Division of Labor Standards Enforcement of the Department of
Industrial Relations, Workers' Compensation Appeals Board, Public
Utilities Commission, Department of Energy, State Compensation
Insurance Fund, Legislative Counsel Bureau, Inheritance Tax
Department, Secretary of State, State Lands Commission, Alcoholic
Beverage Control Appeals Board (except when the board affirms the
decision of the Department of Alcoholic Beverage Control), State
Department of Education, and Treasurer with respect to bonds, nor to
any other state agency which, by law enacted after Chapter 213 of the
Statutes of 1933, is authorized to employ legal counsel.
(b) The Trustees of the California State University shall pay the
cost of employing legal counsel from their existing resources.
SEC. 11. Section 11550 of the Government Code is amended to read:
11550. (a) Effective January 1, 1988, an annual salary of
ninety-one thousand fifty-four dollars ($91,054) shall be paid to
each of the following:
(1) Director of Finance.
(2) Secretary of Business, Transportation and Housing.
(3) Secretary of the Resources Agency.
(4) Secretary of California Health and Human Services.
(5) Secretary of State and Consumer Services.
(6) Commissioner of the California Highway Patrol.
(7) Secretary of the Department of Corrections and Rehabilitation.
(8) Secretary of Food and Agriculture.
(9) Secretary of Veterans Affairs.
(10) Secretary of Labor and Workforce Development.
(11) State Chief Information Officer.
(12) Secretary for Environmental Protection.
(13) Secretary of California Emergency Management.
(14) Secretary of Energy.
(b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
SEC. 12. Section 11553 of the Government Code is amended to read:
11553. (a) Effective January 1, 1988, an annual salary of
eighty-one thousand six hundred thirty-five dollars ($81,635) shall
be paid to each of the following:
(1) Chairperson of the Unemployment Insurance Appeals Board.
(2) Chairperson of the Agricultural Labor Relations Board.
(3) President of the Public Utilities Commission.
(4) Chairperson of the Fair Political Practices Commission.
(5) Chairperson of the Public Employment Relations Board.
(6) Chairperson of the Workers' Compensation Appeals Board.
(7) Administrative Director of the Division of Industrial
Accidents.
(8) Chairperson of the State Water Resources Control Board.
(b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
(c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
SEC. 13. Section 11553.5 of the Government Code is amended to
read:
11553.5. (a) Effective January 1, 1988, an annual salary of
seventy-nine thousand one hundred twenty-two dollars ($79,122) shall
be paid to the following:
(1) Member of the Agricultural Labor Relations Board.
(2) Member of the California Energy Board.
(3) Member of the Public Utilities Commission.
(4) Member of the Public Employment Relations Board.
(5) Member of the Unemployment Insurance Appeals Board.
(6) Member of the Workers' Compensation Appeals Board.
(7) Member of the State Water Resources Control Board.
(b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general cost-of-living salary increases provided
for state employees during that fiscal year.
(c) Notwithstanding subdivision (b), any salary increase is
subject to Section 11565.5.
SEC. 14. Section 12730 of the Government Code is amended to read:
12730. For the purposes of this chapter, the following
definitions apply:
(a) "Community Services Block Grant" refers to the federal funds
and program established by the federal Community Services Block Grant
Program in the Omnibus Budget Reconciliation Act of 1981, as
contained in Public Law 97-35, as that law has been amended from time
to time and as currently codified as Section 9901 et seq. of Title
42 of the United States Code.
(b) "Contract" means the written document incorporating the terms
and conditions under which the department agrees to provide financial
assistance to an eligible entity. Upon its cosigning by authorized
agents of the department and the eligible entity, and subsequent
approval by the Department of General Services pursuant to Section
10295 of the Public Contract Code, a contract shall be deemed to be
valid and enforceable.
(c) "Director" means the Director of Community Services and
Development.
(d) "Delegate agency" or "subcontractor" means a private nonprofit
organization or public agency that operates one or more projects
funded under this chapter pursuant to a contractual agreement with an
eligible entity.
(e) "Department" means the Department of Community Services and
Development established pursuant to Article 8 (commencing with
Section 12085) of Chapter 1.
(f) "Designation" means the formal selection of a proposed
community action agency by the director, as provided in Section
12750.1.
(g) "Eligible entity" means an agency or organization, as defined
in Section 9902 of Title 42 of the United States Code, as amended,
and may include a private nonprofit organization or public agency
that operates one or more projects funded under this chapter pursuant
to a contract with the department.
(h) "Eligible beneficiaries" means all of the following:
(1) All individuals living in households with incomes not to
exceed the official poverty line according to the poverty guidelines
updated periodically in the Federal Register by the United States
Department of Health and Human Services, as defined in Section 9902
of Title 42 of the United States Code, as amended.
(2) All individuals eligible to receive Temporary Assistance for
Needy Families under the state's plan approved under Public Law
104-193, the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, and (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code)
or assistance under Part A of Title IV of the Social Security Act (42
U.S.C. Sec. 601 et seq.).
(3) Residents of a target area or members of a target group having
a measurably high incidence of poverty and that is the specific
focus of a project financed under this chapter.
(i) "Financial assistance" means money provided by the department
to an eligible entity, pursuant to an approved contract, in order to
enable the eligible entity to accomplish its planned and approved
work program.
(j) "Political subdivision" shall generally be deemed to mean
county government, with the following exceptions:
(1) In any county that, prior to October 1, 1981, had more than
one designated community action agency, each unit of local government
that contained a designated community action agency shall continue
to operate as a "political subdivision" under this chapter.
(2) Any county having fewer than 50,000 population according to
the most recent census available may be deemed by the department to
be part of a larger "political subdivision" comprising two or more
counties if the department determines that to do so would best serve
the purposes of this chapter, and may participate in the designation
process for a multicounty community action agency.
(k) "Secretary" means the Secretary of the United States
Department of Health and Human Services.
( l ) "Standards of effectiveness" are the general
standards, derived from the purposes of this chapter and the
assurances and certifications made by the state to the secretary in
the state plan, as further stated in subdivision (g) of Section
12745, and as they may be more specifically defined in regulation,
toward which all programs and projects funded under this chapter
shall be directed and against which they will be assessed.
(m) "State plan" means the plan required to be submitted to the
secretary to secure California's allotment of Community Services
Block Grant funds, which shall be prepared and reviewed pursuant to
the requirements of this chapter.
(n) "Uncapped area" means any county or portion of a county for
which no community action agency has been designated and recognized.
(o) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 15. Section 12730 is added to the Government Code, to read:
12730. For the purposes of this chapter, the following
definitions apply:
(a) "Community Services Block Grant" refers to the federal funds
and program established by the federal Community Services Block Grant
Program in the Omnibus Budget Reconciliation Act of 1981, as
contained in Public Law 97-35, as that law has been amended from time
to time and as currently codified as Section 9901 et seq. of Title
42 of the United States Code.
(b) "Contract" means the written document incorporating the terms
and conditions under which the department agrees to provide financial
assistance to an eligible entity. Upon its cosigning by authorized
agents of the department and the eligible entity, and subsequent
approval by the Department of General Services pursuant to Section
10295 of the Public Contract Code, a contract shall be deemed to be
valid and enforceable.
(c) "Director" means the person who is delegated signatory
authority for the Community Service Block Grant by the Governor as
reflected in the California Community Services Block Grant State
Plan.
(d) "Delegate agency" or "subcontractor" means a private nonprofit
organization or public agency that operates one or more projects
funded under this chapter pursuant to a contractual agreement with an
eligible entity.
(e) "Department" means the Department of Energy established
pursuant to Section 25200 of the Public Resources Code.
(f) "Designation" means the formal selection of a proposed
community action agency by the director, as provided in Section
12750.1.
(g) "Eligible entity" means an agency or organization, as defined
in Section 9902 of Title 42 of the United States Code, as amended,
and may include a private nonprofit organization or public agency
that operates one or more projects funded under this chapter pursuant
to a contract with the department.
(h) "Eligible beneficiaries" means all of the following:
(1) All individuals living in households with incomes not to
exceed the official poverty line according to the poverty guidelines
updated periodically in the Federal Register by the United States
Department of Health and Human Services, as defined in Section 9902
of Title 42 of the United States Code, as amended.
(2) All individuals eligible to receive Temporary Assistance for
Needy Families under the state's plan approved under Public Law
104-193, the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, and (Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code)
or assistance under Part A of Title IV of the Social Security Act (42
U.S.C. Sec. 601 et seq.).
(3) Residents of a target area or members of a target group having
a measurably high incidence of poverty and that is the specific
focus of a project financed under this chapter.
(i) "Financial assistance" means money provided by the department
to an eligible entity, pursuant to an approved contract, in order to
enable the eligible entity to accomplish its planned and approved
work program.
(j) "Political subdivision" shall generally be deemed to mean
county government, with the following exceptions:
(1) In any county that, prior to October 1, 1981, had more than
one designated community action agency, each unit of local government
that contained a designated community action agency shall continue
to operate as a "political subdivision" under this chapter.
(2) Any county having fewer than 50,000 population according to
the most recent census available may be deemed by the department to
be part of a larger "political subdivision" comprising two or more
counties if the department determines that to do so would best serve
the purposes of this chapter, and may participate in the designation
process for a multicounty community action agency.
(k) "Secretary" means the Secretary of the United States
Department of Health and Human Services.
(l) "Standards of effectiveness" are the general standards,
derived from the purposes of this chapter and the assurances and
certifications made by the state to the secretary in the state plan,
as further stated in subdivision (g) of Section 12745, and as they
may be more specifically defined in regulation, toward which all
programs and projects funded under this chapter shall be directed and
against which they will be assessed.
(m) "State plan" means the plan required to be submitted to the
secretary to secure California's allotment of Community Services
Block Grant funds, which shall be prepared and reviewed pursuant to
the requirements of this chapter.
(n) "Uncapped area" means any county or portion of a county for
which no community action agency has been designated and recognized.
(o) This section shall become operative on January 1, 2013.
SEC. 16. Section 12802.5 of the Government Code is amended to
read:
12802.5. The Governor may, with respect to the Resources Agency,
appoint a Deputy Secretary for Energy Matters who may serve as
Secretary of the Natural Resources designee on the California Energy
Board and an Assistant Secretary for Coastal Matters who may serve as
Secretary of the Natural Resources designee on the State Coastal
Commission.
SEC. 17. Section 12805 of the Government Code is amended to read:
12805. (a) The Resources Agency is hereby renamed the Natural
Resources Agency. The Natural Resources Agency consists of the
departments of Forestry and Fire Protection, Conservation, Fish and
Game, Boating and Waterways, Parks and Recreation, Resources
Recycling and Recovery, and Water Resources; the State Lands
Commission; the Colorado River Board; the San Francisco Bay
Conservation and Development Commission; the Central Valley Flood
Protection Board; the Wildlife Conservation Board; the Delta
Protection Commission; the Native American Heritage Commission; the
California Conservation Corps; the California Coastal Commission; the
State Coastal Conservancy; the California Tahoe Conservancy; the
Santa Monica Mountains Conservancy; the Coachella Valley Mountains
Conservancy; the San Joaquin River Conservancy; the San Gabriel and
Lower Los Angeles Rivers and Mountains Conservancy; the Baldwin Hills
Conservancy; the San Diego River Conservancy; and the Sierra Nevada
Conservancy.
(b) No existing supplies, forms, insignias, signs, or logos shall
be destroyed or changed as a result of changing the name of the
Resources Agency to the Natural Resources Agency, and those materials
shall continue to be used until exhausted or unserviceable.
SEC. 18. Section 14450 of the Government Code is amended to read:
14450. The department, in preparing its research and development
program, shall consult with other parts of the transportation
industry, including the private and public sectors, in order to
obtain maximum input designed to develop a balanced multimodal
research and development program. The department shall also consult
with affected state agencies, including the Department of Motor
Vehicles, the State Air Resources Board, and the Department of the
California Highway Patrol.
SEC. 19. Section 14684 of the Government Code is amended to read:
14684. (a) The department, in consultation with the Department of
Energy, shall ensure that solar energy equipment is installed, no
later than January 1, 2007, on all state buildings and state parking
facilities, where feasible. The department shall establish a schedule
designating when solar energy equipment will be installed on each
building and facility, with priority given to buildings and
facilities where installation is most feasible, both for state
building and facility use and consumption and local publicly owned
electric utility use, where feasible.
(b) Solar energy equipment shall be installed where feasible as
part of the construction of all state buildings and state parking
facilities that commences after December 31, 2002.
(c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on a building is available, and if
the solar energy equipment is cost effective.
(d) This section does not exempt the state from any applicable
fee or requirement imposed by the Public Utilities Commission.
(e) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1. For purposes of Chapter
3.5 (commencing with Section 11340) of Part 1, including, but not
limited to, Section 11349.6, the adoption of the regulations shall be
considered by the Office of Administrative Law to be necessary for
the immediate preservation of the public peace, health, safety, and
general welfare. Notwithstanding the 120-day limit specified in
subdivision (e) of Section 11346.1, the regulations shall be repealed
180 days after their effective date, unless the department complies
with Chapter 3.5 (commencing with Section 11340) of Part 1 as
provided in subdivision (e) of Section 11346.1.
(f) For purposes of this section, the following terms have the
following meanings:
(1) "Cost effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent. The present
value cost of the solar energy equipment does not include the cost of
unrelated building components. The department, in making the present
value assessment, shall obtain interest rates, discount rates, and
consumer price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits.
(2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in Section 9604 of the Public
Utilities Code.
(3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for electricity generation.
SEC. 20. Section 14684.1 of the Government Code is amended to
read:
14684.1. (a) The department, in consultation with the Department
of Energy, shall ensure that solar energy equipment is installed, no
later than January 1, 2009, on all state buildings, state parking
facilities, and state-owned swimming pools that are heated with
fossil fuels or electricity, where feasible. The department shall
establish a schedule designating when solar energy equipment will be
installed on each building and facility, with priority given to
buildings and facilities where installation is most feasible.
(b) Solar energy equipment shall be installed, where feasible, as
part of the construction of all state buildings and state parking
facilities for which construction commences on or after January 1,
2008.
(c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on or adjacent to a building is
available, if the solar energy equipment is cost effective, and if
funding is available from the state or another source.
(d) Any solar energy equipment installed pursuant to this section
shall meet applicable standards and requirements imposed by state
and local permitting authorities, including, but not limited to, all
of the following:
(1) Certification by the Solar Rating and Certification
Corporation, which is a nonprofit third party supported by the United
States Department of Energy, or any other nationally recognized
certification agency.
(2) All applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, such as
the Underwriters Laboratories.
(3) Where applicable, the regulations adopted by the Public
Utilities Commission regarding safety and reliability.
(e) This section does not exempt the state from the payment of any
applicable fee or requirement imposed by the Public Utilities
Commission.
(f) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1. For purposes of that
chapter, including, but not limited to, Section 11349.6, the adoption
of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
Notwithstanding the 120-day limit specified in subdivision (e) of
Section 11346.1, the regulations shall be repealed 180 days after
their effective date, unless the department complies with Chapter 3.5
(commencing with Section 11340) of Part 1 as provided in subdivision
(e) of Section 11346.1.
(g) Any solar energy equipment installed pursuant to this section
shall be subject to the provisions of the California Solar Rights Act
of 1978 (Chapter 1154 of the Statutes of 1978), as amended.
(h) For purposes of this section, the following terms have the
following meanings:
(1) "Cost
effective" means that the present value of the savings generated over
the life of the solar energy system, including consideration of the
value of the energy produced during peak and off-peak demand periods
and the value of a reliable energy supply not subject to price
volatility, shall exceed the present value cost of the solar energy
equipment by not less than 10 percent. The present value cost of the
solar energy equipment does not include the cost of unrelated
building components. The department, in making the present value
assessment, shall obtain interest rates, discount rates, and consumer
price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits and the value of stable
energy costs.
(2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in subdivision (d) of Section 9604
of the Public Utilities Code.
(3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for the purpose of heat production, electricity
production, or simultaneous heat and electricity production.
SEC. 21. Section 15814.22 of the Government Code is amended to
read:
15814.22. The Department of General Services, in consultation
with the Department of Energy and other state agencies and
departments, shall develop a multiyear plan, to be updated
biennially, with the goal of exploiting all practicable and
cost-effective energy efficiency measures in state facilities. The
department shall coordinate plan implementation efforts, and make
recommendations to the Governor and the Legislature to achieve energy
efficiency goals for state facilities.
SEC. 22. Section 15814.23 of the Government Code is amended to
read:
15814.23. The Department of General Services or each state agency
having jurisdiction shall ensure that all new state buildings are
designed and constructed to meet at least the minimum energy
efficiencies specified in standards adopted by the Department of
Energy pursuant to Section 25402 of the Public Resources Code. In the
design and construction of new state buildings, the department or
other responsible state agency shall also consider additional
state-of-the-art energy efficiency design measures and equipment,
beyond those required by the standards, that are cost effective and
feasible.
SEC. 23. Section 15814.25 of the Government Code, as amended by
Section 48 of Chapter 193 of the Statutes of 2004, is amended and
renumbered to read:
15814.24.1. Energy conservation measures eligible for financing
by kindergarten through grade 12 schools shall be limited to those
measures recommended pursuant to an energy audit provided by the
Department of Energy under its existing authority.
SEC. 24. Section 15814.30 of the Government Code is amended to
read:
15814.30. (a) All new public buildings for which construction
begins after January 1, 1993, shall be models of energy efficiency
and shall be designed, constructed, and equipped with all energy
efficiency measures, materials, and devices that are feasible and
cost effective over the life of the building or the life of the
energy efficiency measure, whichever is less.
(b) In determining which energy efficiency measures, materials,
and devices are feasible and cost effective over the life of the
building, the State Architect and the Department of General Services
shall consult with the Department of Energy.
(c) For purposes of this section, "cost effective" means that
savings generated over the life of the building or the life of the
energy efficiency measure, whichever is less, shall exceed the cost
of purchasing and installing the energy efficiency measures,
materials, or devices by not less than 10 percent.
SEC. 25. Section 15814.34 of the Government Code is amended to
read:
15814.34. (a) The Legislature finds and declares all of the
following:
(1) The state purchases a number of commodities, including, but
not limited to, lighting fixtures, heating, ventilation and
air-conditioning units, and copiers, that cumulatively account for a
significant portion of the energy consumed by state operations.
(2) The state can realize significant energy savings and reduced
energy costs by purchasing brands or models of commonly used
commodities with low life cycle costs.
(3) Commodities necessary for state operations may be purchased
directly by the state department or agency using the commodity, or
may be purchased by the Department of General Services on behalf of
other state departments or agencies.
(4) In order to increase energy efficiency and reduce costs to the
taxpayers of the state, the state should make every reasonable
effort to identify and purchase those commodities that have the
lowest life cycle cost and meet the operational requirements of the
state.
(b) The Department of General Services shall, on an ongoing basis,
do all of the following:
(1) Identify commodities purchased by the department that,
individually or on a statewide basis, consume a significant amount of
energy.
(2) For each commodity identified pursuant to paragraph (1),
determine the life cycle cost of the following:
(A) The brand or model of the commodity purchased by the
department.
(B) The brand or model of the commodity that has the lowest life
cycle cost, provided it is available for purchase by the state and
meets all operational specifications of the state.
(3) Consult with the Department of Energy in the development and
revision of one or more methods of determining the life cycle costs
of commodities.
(c) In order to assist other agencies and departments in
identifying commodities with the lowest life cycle costs, the
Department of General Services shall distribute the following to all
state agencies and departments:
(1) A list of those commodities with the lowest life cycle costs,
as determined pursuant to paragraph (2) of subdivision (b).
(2) The method or methods used by the Department of General
Services to determine the life cycle costs of commodities.
(d) The method or methods used by the Department of General
Services to calculate the life cycle costs of commodities shall be
designed to be easily understood and used by purchasing agents and
other personnel in making purchasing decisions.
(e) Notwithstanding any other provision of law, all state agencies
and departments shall purchase those commodities identified pursuant
to subdivision (b) that have the lowest life cycle costs and that
meet the applicable specifications, and shall make every reasonable
effort to identify and purchase other commodities with the lowest
life cycle costs.
(f) "Life cycle cost" for the purposes of this section, means the
total cost of purchasing, installing, maintaining, and operating a
device or system during its reasonably expected life. It includes,
but is not necessarily limited to, capital costs, labor costs, energy
costs, and operating and maintenance costs.
SEC. 26. Section 16366.1 of the Government Code is repealed.
SEC. 27. Section 16366.1 is added to the Government Code, to read:
16366.1. The Legislature finds and declares all of the following:
(a) For over 30 years, the federal government has funded programs
that help low-income households meet the rising costs of utilities,
including electricity, gas, and other household fuels, through block
grants and other targeted funding that lowers the energy burden and
increases the energy-related health and safety of low-income housing.
(b) In California, it is calculated that low-income families spend
up to 16 percent of their household income on utilities, as compared
to 5 percent of the household income of median income families.
(c) The increased energy burden for low-income families often
results in vulnerable populations making tough choices between
essential costs, such as food, transportation, and heating or cooling
their home in a safe manner.
(d) Since 1975, California has administered the state's share of
these federal programs, including the Low-Income Home Energy
Assistance Program Block Grant (LIHEAP), provided for pursuant to the
Low-Income Home Energy Assistance Act of 1981, as amended (42 U.S.C.
Sec. 8621 et seq.), and the United States Department of Energy
Weatherization Assistance Program (DOE WAP), provided for pursuant to
Title IV of the Energy Conservation and Production Act (Public Law
94-385, as amended) and pursuant to the United States Housing and
Urban Development Residential Lead-Based Paint Hazard Reduction Act
of 1992 (Public Law 102-550, as amended), in conjunction with other
federal and state antipoverty programs that assist low-income
families with achieving self-sufficiency.
(e) California has embarked on a new era of leadership to achieve
ambitious energy goals including energy conservation and efficiency,
alternative fuels, and reduce carbon emissions. A critical pathway to
achieving these goals is the strategic reorganization and
consolidation of various energy-related programs, to maximize the
outcomes of those individual programs in support of the state's
energy plans.
(f) Consolidating the state's federally funded low-income energy
programs in a new Department of Energy can assist the state with
achieving the objectives of the state's energy plans through the
quantification of the energy conserved and carbon emissions reduced
as a result of the low-income weatherization activities.
(g) The funds from the federal American Recovery and Reinvestment
Act of 2009 (Public Law 111-5) are appropriated to the Department of
Community Services and Development to implement the state's federally
funded low-income energy, weatherization, and lead hazard reduction
programs.
(h) By reorganizing the state's low-income energy, weatherization,
and lead hazard reduction programs, including LIHEAP and DOE WAP,
into the new Department of Energy, it is the intent of the
Legislature to support the accomplishment of the state's energy
plans, while not diminishing or sacrificing the primary federal
purposes of these programs that are all of the following:
(1) Assist low-income households with reducing their energy burden
through cash assistance and weatherization.
(2) Prioritize the needs of vulnerable populations including the
elderly, families with young children, and people dependent on
electrical medical equipment.
(3) Help low-income families achieve self sufficiency.
(i) It is the intent of the Legislature to have the Department of
Community Services and Development administer the federal low-income
energy, weatherization, and lead hazard reduction programs through
December 31, 2012, to ensure continuous allocation and distribution
of funds from the federal American Recovery and Reinvestment Act of
2009. On and after January 1, 2013, the federally funded low-income
energy, weatherization, and lead hazard reduction programs should be
administered by the Department of Energy.
SEC. 28. Section 16366.2 of the Government Code is amended to
read:
16366.2. As used in this article, "local service provider" means
a public or private nonprofit entity, as defined by federal law and
regulation, that provides service directly to eligible beneficiaries.
SEC. 29. Section 16366.3 of the Government Code is repealed.
SEC. 30. Section 16366.35 of the Government Code is amended to
read:
16366.35. Local service providers designated by the state shall
be granted maximum flexibility in administering federal categorical
and block grant programs to the extent permitted by state planning
requirements. It is the intent of the Legislature in enacting this
section to provide the local service providers maximum flexibility in
setting priorities in these programs for any reduced funding
consistent with federal and state law and policy.
SEC. 31. Section 16366.4 of the Government Code is repealed.
SEC. 32. Section 16366.5 of the Government Code is repealed.
SEC. 33. Section 16366.6 of the Government Code is amended to
read:
16366.6. (a) The funds shall be used to serve beneficiaries and
households, as defined in the federal laws and regulations
establishing the block grant programs or as further defined in this
chapter.
(b) Federal funds shall be received by the Controller and held in
a separate account of the federal trust fund in accordance with state
law governing the administration of federal funds.
(c) The funds shall be disbursed to 1980-81 fiscal year grantees
of categorical grant programs consolidated into the federal block
grants in an amount which reflects the overall change in federal
categorical funds which were available in the 1980-81 federal fiscal
year.
SEC. 34. Section 16366.7 of the Government Code is amended to
read:
16366.7. Notwithstanding any other provision of law:
(a) All state agencies, offices, or departments administering
federal block grant funds shall have the authority, subject to the
approval of the Department of Finance, to grant advance payments of
federal funds to contractors or local governmental agencies in any
amounts as the administering state department deems necessary for
startup or continued provision of services or program operation.
(b) Departmental service contracts utilizing federal block grant
funds shall be exempt from approval by the Department of Finance and
the State Department of General Services prior to their execution.
Instead, the proper state fiscal controls over federal block grant
funds shall be insured by all of the following provisions:
(1) State departments that award block grant funds to local
agencies shall permit, as appropriate, to the extent that federal
funds are available for this purpose, local agencies to provide for
federally mandated financial and compliance audits of block grant
awards in accordance with the federal audit provisions and standards
promulgated by the Comptroller General of the United States, and
consistent with the department's approved audit plan.
(2) The Department of Finance, in consultation with the
Controller, shall establish fiscal reporting requirements for the
departments to use on a quarterly basis with all providers.
(3) In the event a contractor has not engaged in a contract for
these program purposes before with the state, state administering
departments shall have the authority to conduct a preaudit or fund a
preaudit by the Controller in order to certify the ability of the
contractor to administer the funds.
(4) The State Auditor shall provide audit findings regarding each
block grant to the Legislature no later than May 1 of each year.
(c) Each administering state department shall develop standard
definitions for units of service, costs per unit of service, citizen
participation processes, and due process notification for clients in
relation to diminishing federal funds and shall incorporate all of
these elements into each agreement or contract.
(d) Compliance with this section shall be consistent with federal
policies and procedures. Reports required under this section shall
be combined, where practical, with any other similar reports required
by the Legislature and by the federal government.
SEC. 35. Section 16366.8 of the Government Code is repealed.
SEC. 36. Section 16366.9 of the Government Code is repealed.
SEC. 37. Section 16367.5 of the Government Code is amended to
read:
16367.5. The Department of Community Services and Development
shall receive and administer the federal Low-Income Home Energy
Assistance Program Block Grant, provided for pursuant to the
Low-Income Home Energy Assistance Act of 1981, as amended (42 U.S.C.
Sec. 8621 et seq.). The department shall afford local service
providers maximum flexibility and control, within the parameters of
federal and state law, in the planning, administration, and delivery
of Low-Income Home Energy Assistance Program Block Grant services.
Local service providers shall be defined as private, nonprofit, and
public agencies designated in accordance with Public Law 97-35, as
amended. The formation of service regions beyond those that were in
place in 1995, or those that were in place in Los Angeles County in
January 1997, shall occur only with the concurrence of service
providers within the proposed regions. The department shall allocate
funds received as follows:
(a) Up to 5 percent of the state's total federal allocation for
the Low-Income Home Energy Assistance Program shall be retained
by the Department of Community Services and Development for purposes
of overall planning and administration. At least 5 percent of the
state's total federal allocation for the Low-Income Home Energy
Assistance Program shall be allocated to local service
providers for purposes of planning and administration.
(b) Services under this section shall be available to households
in which one or more individuals are receiving:
(1) Temporary Assistance for Needy Families under the state's plan
approved under Public Law 104-193, the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.
(2) Supplemental Security Income payments under Title XVI of the
federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter
3 (commencing with Section 12000) of Part 3 of Division 9 of the
Welfare and Institutions Code.
(3) County general assistance under Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(4) Food stamps received under the Food Stamp Act of 1977 and
pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of
Division 9 of the Welfare and Institutions Code.
(5) Payments under Section 415, 521, 541, or 542 of Title 38 of
the United States Code, or under Section 306 of the Veterans' and
Survivors' Pension Improvement Act of 1978.
(c) An amount of not less than 15 percent and up to the maximum
allowed by federal law of the total federal allocation shall be
allocated for weatherization services for eligible individuals. For
each program year, to the extent that the state is eligible, the
Department of Community Services and Development shall apply to the
appropriate federal agencies for any waivers that may be necessary to
ensure that the amount available for the purposes of this
subdivision will be the maximum amount allowable under federal law.
For the purposes of this subdivision, weatherization shall include
all energy conservation measures and energy efficient appliances that
are cost-effective and improve energy efficiency. The department
shall allocate 5 percent of the weatherization program allocation to
local service providers for outreach and related activities.
(d) At the discretion of local service providers, the state shall
allocate the maximum amount allowable under federal law to local
service providers to provide services that encourage and enable
households to reduce their home energy needs, thus reducing the need
for energy assistance, including needs assessments, counseling, and
assistance with energy vendors, in accordance with Section 2605(b)
(16) of Public Law 97-35, as amended.
(e) Based on data from prior years, a reasonable amount of
available funds, as determined jointly by the department and the
local service providers, shall be reserved until March 15 of each
program year for the Energy Crisis Intervention Program. Local
service providers shall submit proposed funding levels with
supporting data to the department in a timely manner for inclusion in
the state plan. The department shall approve local funding requests
that are determined to be in compliance with federal law. These funds
shall only be used for emergency assistance to eligible individuals
for programs specified in this subdivision, who give evidence of one
or more of the following conditions:
(1) Proof of utility shutoff notice.
(2) Proof of energy termination.
(3) Insufficient funds to establish a new energy account.
(4) Insufficient funds to pay a delinquent utility bill.
(5) Insufficient funds to pay the cost of space heating devices
where no alternative source of space heating is reasonably available.
(6) Insufficient funds to pay for essential firewood, oil, or
propane.
(7) Insufficient funds to pay for the cost of emergency repairs to
heating and cooling units, the emergency replacement of heating and
cooling units, or both.
(8) Insufficient funds to pay energy costs for a household where a
household member's medical condition requires use of life support or
climate and temperature control systems.
(9) Other conditions that may be included in the state plan.
(f) (1) The Energy Crisis Intervention Program shall not include
advocacy, community mobilization, or community planning. After March
15 of each program year, local administrative agencies shall have the
option of continuing to offer energy crisis intervention services or
of reallocating a portion of or all unspent energy crisis
intervention funds into direct assistance payment services.
(2) The department shall allocate 5 percent of the Energy Crisis
Intervention Program allocation to the local service providers for
outreach and related services.
(3) The department shall retain all funds associated with Energy
Crisis Intervention Program payments for gas and electric utility
service, and shall make payments for eligible households' gas or
electric service accounts directly to the utilities. The department
may use alternative payment methods when direct payments to the
utilities have not been arranged.
(g) The remainder of the total federal allocation shall be
utilized for aid for home energy costs for direct assistance
payments. The department shall retain all funds associated with Home
Energy Assistance Program direct assistance payments for gas and
electric utility service, and shall make payments for eligible
households' gas or electric service accounts directly to the
utilities. The department may use alternative payment methods when
direct payments to the utilities have not been arranged.
(h) The Department of Community Services and Development shall
contract with local public or private nonprofit agencies, or both, to
provide outreach, intake, and other activities to enroll eligible
individuals in the program components prescribed by this section.
(i) The program components provided for in this section shall
include activities to enroll households that have the highest home
energy needs as determined by taking into account both the energy
burden of these households, and the unique situation of these
households that results from having members of vulnerable
populations, including very young children, individuals with
disabilities, and frail older individuals, as provided for by Section
2603(3) of Public Law 97-35, as amended, and to educate recipients
about general energy conservation practices and about the
availability of state and federal utility programs for free
weatherization of low-income homes.
(j) The department shall allocate 5 percent of the direct
assistance payment funds to the local service providers for outreach
and related services in operating the direct home energy assistance
payment program.
(k) The department shall establish a local service providers
committee to act in an advisory capacity in the development of the
annual Low-Income Home Energy Assistance Program state plan. The
membership of the committee shall include one voting representative
chosen by each local service provider that has a Low-Income Home
Energy Assistance Program contract with the state and one
representative of each interested utility company. Each local service
provider may, at its option, assign its vote in writing to another
entity, such as a provider association, to represent its interests.
( l ) This section shall remain in effect only until
January 1, 2013, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2013, deletes or
extends that date.
SEC. 38. Section 16367.5 is added to the Government Code, to read:
16367.5. (a) As used in this section, "department" means the
Department of Energy established pursuant to Section 25200 of the
Public Resources Code.
(b) The department shall receive and administer the federal
Low-Income Home Energy Assistance Program Block Grant, provided for
pursuant to the Low-Income Home Energy Assistance Act of 1981, as
amended (42 U.S.C. Sec. 8621 et seq.). The department shall afford
local service providers maximum flexibility and control, within the
parameters of federal and state law, in the planning, administration,
and delivery of Low-Income Home Energy Assistance Program Block
Grant services. Local service providers shall be defined as private,
nonprofit, and public agencies designated in accordance with Public
Law 97-35, as amended. The formation of service regions beyond those
that were in place in 1995, or those that were in place in Los
Angeles County in January 1997, shall occur only with the concurrence
of service providers within the proposed regions. The department
shall allocate funds received as follows:
(1) Up to 5 percent of the state's total federal allocation for
the Low-Income Home Energy Assistance Program shall be retained by
the department for purposes of overall planning and administration.
Five At least 5 percent of the state's
total federal allocation for the Low-Income Home Energy Assistance
Program shall be allocated to local service providers for purposes of
planning and administration.
(2) Services under this section shall be available to households
in which one or more individuals are receiving:
(A) Temporary Assistance for Needy Families under the state's plan
approved under Public Law 104-193, the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.
(B) Supplemental Security Income payments under Title XVI of the
federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter
3 (commencing with Section 12000) of Part 3 of Division 9 of the
Welfare and Institutions Code.
(C) County general assistance under Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(D) Food stamps received under the Food Stamp Act of 1977 and
pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of
Division 9 of the Welfare and Institutions Code.
(E) Payments under Section 415, 521, 541, or 542 of Title
38 of the United States Code, or under Section 306 of the Veterans'
and Survivors' Pension Improvement Act of 1978.
(F) Households with incomes that do not exceed the greater of an
amount equal to the maximum percent of the federal poverty level or
state median income, as permitted by the federal block grant, except
that no household may be excluded from eligibility solely on the
basis of household income if that income is less than 110 percent of
the poverty level for this state, but priority may be given to those
households with the highest home energy costs or needs in relation to
household income.
(3) An amount of not less than 15 percent and up to the maximum
allowed by federal law of the total federal allocation shall be
allocated for weatherization services for eligible individuals. For
each program year, to the extent that the state is eligible, the
department shall apply to the appropriate federal agencies for any
waivers that may be necessary to ensure that the amount available for
the purposes of this subdivision will be the maximum amount
allowable under federal law. For the purposes of this subdivision,
weatherization shall include all energy conservation measures and
energy efficient appliances that are cost effective and improve
energy efficiency. The department shall allocate 5 percent of the
weatherization program allocation to local service providers for
outreach and related activities.
(4) At the discretion of local service providers, the state shall
allocate the maximum amount allowable under federal law to local
service providers to provide services that encourage and enable
households to reduce their home energy needs, thus reducing the need
for energy assistance, including needs assessments, counseling, and
assistance with energy vendors, in accordance with Section 2605(b)
(16) of Public Law 97-35, as amended.
(5) Based on data from prior years, a reasonable amount of
available funds, as determined jointly by the department and the
local service providers, shall be reserved until March 15 of each
program year for the Energy Crisis Intervention Program. Local
service providers shall submit proposed funding levels with
supporting data to the department in a timely manner for inclusion in
the state plan. The department shall approve local funding requests
that are determined to be in compliance with federal law. These funds
shall only be used for emergency assistance to eligible individuals
for programs specified in this subdivision, who give evidence of one
or more of the following conditions:
(A) Proof of utility shutoff notice.
(B) Proof of energy termination.
(C) Insufficient funds to establish a new energy account.
(D) Insufficient funds to pay a delinquent utility bill.
(E) Insufficient funds to pay the cost of space heating devices
where no alternative source of space heating is reasonably available.
(F) Insufficient funds to pay for essential firewood, oil, or
propane.
(G) Insufficient funds to pay for the cost of emergency repairs to
heating and cooling units, the emergency replacement of heating and
cooling units, or both.
(H) Insufficient funds to pay energy costs for a household where a
household member's medical condition requires use of life support or
climate and temperature control systems.
(I) Other conditions that may be included in the state plan.
(6) (A) The energy crisis intervention program shall not include
advocacy, community mobilization, or community planning. After March
15 of each program year, local administrative agencies shall have the
option of continuing to offer energy crisis intervention services or
of reallocating a portion of or all unspent energy crisis
intervention funds into direct assistance payment services.
(B) The department shall allocate 5 percent of the energy crisis
intervention program allocation to the local service providers for
outreach and related services.
(C) The department shall retain all funds associated with Energy
Crisis Intervention Program payments for gas and electric utility
service, and shall make payments for eligible households' gas or
electric service accounts directly to the utilities. The department
may use alternative payment methods when direct payments to the
utilities have not been arranged.
(7) The remainder of the total federal allocation shall be
utilized for aid for home energy costs for direct assistance
payments. The department shall retain all funds associated with Home
Energy Assistance Program direct assistance payments for gas and
electric utility service, and shall make payments for eligible
households' gas or electric service accounts directly to the
utilities. The department may use alternative payment methods when
direct payments to the utilities have not been arranged.
(8) The department shall contract with local public or private
nonprofit agencies, or both, to provide outreach, intake, and other
activities to enroll eligible individuals in the program components
prescribed by this section.
(9) The program components provided for in this section shall
include activities to enroll households that have the highest home
energy needs as determined by taking into account both the energy
burden of these households, and the unique situation of these
households that results from having members of vulnerable
populations, including very young children, individuals with
disabilities, and frail older individuals, as provided for by Section
2603(3) of Public Law 97-35, as amended, and to educate recipients
about general energy conservation practices and about the
availability of state and federal utility programs for free
weatherization of low-income homes.
(10) The department shall allocate 5 percent of the direct
assistance payment funds to the local service providers for outreach
and related services in operating the direct home energy assistance
payment program.
(11) The department shall establish a local service providers
committee to act in an advisory capacity in the development of the
annual Low-Income Home Energy Assistance Program state plan. The
membership of the committee shall include one voting representative
chosen by each local service provider that has a Low-Income Home
Energy Assistance Program contract with the state and one
representative of each interested utility company. Each local service
provider may, at its option, assign its vote in writing to another
entity, such as a provider association, to represent its interests.
(c) This section shall become operative on January 1, 2013.
SEC. 39. Section 16367.6 of the Government Code is amended to
read:
16367.6. (a) The Department of Community Services and Development
shall receive and administer all state and federal funds that are
allocated for programs to provide energy assistance, weatherization,
and lead hazard reduction to qualified low-income individuals only,
except for those funds that are allocated to, and distributed by, the
California Energy Extension Service.
(b)The Department of Community Services and Development shall
promulgate a comprehensive procedure to assure that those energy
assistance funds are utilized in the most productive and efficient
manner, including a distribution system whereby all funds allocated
for direct assistance payments are distributed by state and local
agencies directly to the electrical or gas corporations or other
suppliers of energy on behalf of the qualified low-income individuals
or by two-party checks made payable to both the energy supplier and
the individual. In establishing this system, the Department of
Community Services and Development shall consult with representatives
of electrical or gas corporations or other suppliers of energy and
with local agencies that participate in distributing assistance
funds.
The Department of Community Services and Development shall have
the discretion to adjust payments to the energy supplier or the
individual or to make direct payments to the individual for payment
to an energy supplier in special or unique circumstances not
otherwise provided for in this section.
(c) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 40. Section 16367.6 is added to the Government Code, to read:
16367.6. (a) The Department of Energy shall receive and
administer all state and federal funds that are allocated for
programs to provide energy assistance, weatherization, and lead
hazard reduction to qualified low-income individuals only, except for
those funds that are allocated to, and distributed by, the
California Energy Extension Service.
(b) The Department of Energy shall promulgate a comprehensive
procedure to assure that those energy assistance funds are utilized
in the most productive and efficient manner, including a distribution
system whereby all funds allocated for direct assistance payments
are distributed by state and local agencies directly to the
electrical or gas corporations or other suppliers of energy on behalf
of the qualified low-income individuals or by two-party checks made
payable to both the energy supplier and the individual. In
establishing this system, the Department of Energy shall consult with
representatives of electrical or gas corporations or other suppliers
of energy and with local agencies that participate in distributing
assistance funds.
(c) The Department of Energy shall have the discretion to adjust
payments to the energy supplier or the individual or to make direct
payments to the individual for payment to an energy supplier in
special or unique circumstances not otherwise provided for in this
section.
(d) This section shall become operative on January 1, 2013.
SEC. 41. Section 16367.61 of the Government Code is repealed.
SEC. 42. Section 16367.65 of the Government Code is repealed.
SEC. 43. Section 16367.7 of the Government Code is repealed.
SEC. 44. Section 16367.8 of the Government Code is repealed.
SEC. 45. Section 66645 of the Government Code is amended to read:
66645. (a) In addition to the provisions of Sections 25302,
25500, 25519, 25523, and 25526 of the Public Resources Code, the
provisions of this section shall apply to the commission and the
Department of Energy with respect to matters within the statutory
responsibility of the latter.
(b) After one or more public hearings, and prior to January 1,
1979, the commission shall designate those specific locations within
the Suisun Marsh, as defined in Section 29101 of the Public Resources
Code, or the area of jurisdiction of the commission, where the
location of a facility, as defined in Section 25110 of the Public
Resources Code, would be inconsistent with this title or Division 19
(commencing with Section 29000) of the Public Resources Code. The
following locations, however, shall not be so designated: (1) any
property of a utility that is used for such a facility or will be
used for the reasonable expansion thereof; (2) any site for which a
notice of intention to file an application for certification has been
filed pursuant to Section 25502 of the Public Resources Code prior
to January 1, 1978, and is subsequently approved pursuant to Section
22516 of the Public Resources Code; and (3) the area east of
Collinsville Road that is designated for water-related industrial use
on the Suisun Marsh Protection Plan Map. Each designation made
pursuant to this section shall include a description of the
boundaries of those locations, the provisions of this title or
Division 19 (commencing with Section 29000) of the Public Resources
Code with which they would be inconsistent, and detailed findings
concerning the significant adverse impacts that would result from
development of a facility in the designated area. The commission
shall consider the conclusions, if any, reached by the Department of
Energy in its most recently promulgated comprehensive report issued
pursuant to Section 25309 of the Public Resources Code. The
commission also shall request the assistance of the Department of
Energy in carrying out the requirements of this section. The
commission shall transmit a copy of its report prepared pursuant to
this subdivision to the State Energy Resources Conservation and
Development Commission.
(c) The commission shall revise and update the designations
specified in subdivision (b) not less than once every five years.
(d) Whenever the California Energy Board within the Department of
Energy exercises its siting authority and undertakes proceedings
pursuant to the provisions of Chapter 6 (commencing with Section
25500) of Division 15 of the Public Resources Code with respect to
any thermal powerplant of 50 megawatts or greater or transmission
line to be located, in whole or in part, within the Suisun Marsh or
the area of jurisdiction of the commission, the commission shall
participate in those proceedings and shall receive from the
Department of Energy any notice of intention to file an application
for certification of a site and related facilities within the Suisun
Marsh or the area of jurisdiction of the commission. The commission
shall analyze an application for certification and, prior to
commencement of the hearings conducted pursuant to Section 25221 of
the Public Resources Code, shall forward to the Department of Energy
a written report on the suitability of the proposed site and related
facilities specified in that notice. The commission's report shall
contain a consideration of, and findings regarding, the following:
(1) If it is to be located within the Suisun Marsh, the
consistency of the proposed site and related facilities, with this
title and Division 19 (commencing with Section 29000) of the Public
Resources Code, the policies of the Suisun Marsh Protection Plan (as
defined in Section 29113 of the Public Resources Code) and the
certified local protection program (as defined in Section 29111 of
the Public Resources Code) if any.
(2) If it is to be located within the area of jurisdiction of the
commission, the consistency of the proposed site and related
facilities with this title and the San Francisco Bay Plan.
(3) The degree to which the proposed site and related facilities
could reasonably be modified so as to be consistent with this title,
Division 19 (commencing with Section 29000) of the Public Resources
Code, the Suisun Marsh Protection Plan, or the San Francisco Bay
Plan.
(4) Any other matters as the commission deems appropriate and
necessary to carry out Division 19 (commencing with Section 29000) of
the Public Resources Code.
SEC. 46. Section 66646 of the Government Code is amended to read:
66646. Notwithstanding any other provision of this title, except
subdivisions (b) and (c) of Section 66645, and notwithstanding any
provision of Division 19 (commencing with Section 29000) of the
Public Resources Code, new or expanded electric generating plants may
be constructed within the Suisun Marsh, as defined in Section 29101
of the Public Resources Code, or the area of jurisdiction of the
commission, if the proposed site has been determined, pursuant to
Section 25523 of the Public Resources Code, by the California Energy
Board within the Department of Energy to have greater relative merit
than available alternative sites and related facilities.
SEC. 46.1. Section 44270.3 of the
Health and Safety Code is amended to read:
44270.3. For the purposes of this chapter, the following terms
have the following meanings:
(a) "Commission" means the State Energy Resources
Conservation and Development Commission "Department"
means the Department of Energy .
(b) "Full fuel-cycle assessment" or "life-cycle assessment" means
evaluating and comparing the full environmental and health impacts of
each step in the life cycle of a fuel, including, but not limited
to, all of the following:
(1) Feedstock production, extraction, cultivation, transport, and
storage, and the transportation and use of water and changes in land
use and land cover therein.
(2) Fuel production, manufacture, distribution, marketing,
transport, and storage, and the transportation and use of water
therein.
(3) Vehicle operation, including refueling, combustion,
conversion, permeation, and evaporation.
(c) "Vehicle technology" means any vehicle, boat, off-road
equipment, or locomotive, or component thereof, including its engine,
propulsion system, transmission, or construction materials.
SEC. 46.2. Section 44271 of the Health
and Safety Code is amended to read:
44271. (a) This chapter creates the Alternative and Renewable
Fuel and Vehicle Technology Program, pursuant to Section 44272, to be
administered by the commission department
, and the Air Quality Improvement Program, pursuant to Section
44274, to be administered by the state board. The commission
department, by action of the California Energy Board,
and the state board shall do all of the following in
fulfilling their responsibilities pursuant to their respective
programs:
(1) Establish sustainability goals to ensure that alternative and
renewable fuel and vehicle deployment projects, on a full fuel-cycle
assessment basis, will not adversely impact natural resources,
especially state and federal lands.
(2) Establish a competitive process for the allocation of funds
for projects funded pursuant to this chapter.
(3) Identify additional federal and private funding opportunities
to augment or complement the programs created pursuant to this
chapter.
(4) Ensure that the results of the reductions in emissions or
benefits can be measured and quantified.
(b) The state board shall develop and adopt guidelines for both
the Alternative and Renewable Fuel and Vehicle Technology Program and
the Air Quality Improvement Program to ensure that programs meet
both of the following requirements:
(1) Activities undertaken pursuant to the programs complement, and
do not interfere with, efforts to achieve and maintain federal and
state ambient air quality standards and to reduce toxic air
contaminant emissions.
(2) Activities undertaken pursuant to the programs maintain or
improve upon emission reductions and air quality benefits in the
State Implementation Plan for Ozone, California Phase 2 Reformulated
Gasoline standards, and diesel fuel regulations.
(c) For the purposes of both of the programs created by this
chapter, eligible projects do not include those required to be
undertaken pursuant to state or federal law, district rules or
regulations, memoranda of understanding with a governmental entity,
or legally binding agreements or documents. For the purposes of the
Alternative and Renewable Fuel and Vehicle Technology Program, the
state board shall advise the commission
department to ensure the requirements of this subdivision are
met.
SEC. 46.3. Section 44272 of the Health
and Safety Code is amended to read:
44272. (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission department
. The commission department, by action
of the California Energy Board, shall implement the program by
regulation pursuant to the requirements of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The program shall provide, upon appropriation by
the Legislature, competitive grants, revolving loans, loan
guarantees, loans, or other appropriate funding measures, to public
agencies, vehicle and technology entities, businesses and projects,
public-private partnerships, workforce training partnerships and
collaboratives, fleet owners, consumers, recreational boaters, and
academic institutions to develop and deploy innovative technologies
that transform California's fuel and vehicle types to help attain the
state's climate change policies. The emphasis of this program shall
be to develop and deploy technology and alternative and renewable
fuels in the marketplace, without adopting any one preferred fuel or
technology.
(b) A project funded by the commission
California Energy Board shall be approved at a noticed public
hearing of the commission California Energy
Board and shall be consistent with the priorities established
by the investment plan adopted pursuant to Section 44272.5.
(c) The commission department, by action
of the California Energy Board, shall provide preferences to
those projects that maximize the goals of the Alternative and
Renewable Fuel and Vehicle Technology Program, based on the following
criteria, as applicable:
(1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
(2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
(3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
(4) The project's ability to decrease, on a life-cycle basis, the
discharge of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280)
2281) of Chapter 5 of Division 3 of Title 13 of the
California Code of Regulations.
(5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
(6) The project provides nonstate matching funds.
(7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
(8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
(9) The project's ability to reduce on a life-cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
(10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
(11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
(d) Only the following shall be eligible for funding:
(1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
(2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
(3) Projects to produce alternative and renewable low-carbon fuels
in California.
(4) Projects to decrease the overall impact of an alternative and
renewable fuel's life cycle carbon footprint and increase
sustainability.
(5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.
(6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
battery electric vehicle technology, fuel cell technology, and
conversions of hybrid technology to plug-in technology through the
installation of safety certified supplemental battery modules.
(7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, supply-chain development, and research related to the
pedestrian safety impacts of vehicle technologies and alternative and
renewable fuels.
(8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
(9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
(10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
(11) Block grants administered by not-for-profit technology
entities for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
(12) Life-cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
technology assessments performed by a state agency to determine the
impacts of increasing the use of low-carbon transportation fuels and
technologies, and to assist in the preparation of the investment
plan and program
implementation.
(e) The commission California Energy Board
may make a single source or sole source award pursuant to this
section for applied research. The same requirements set forth in
Section 25620.5 of the Public Resources Code shall apply to awards
made on a single source basis or a sole source basis. This
subdivision does not authorize the commission
California Energy Board to make a single source or sole source
award for a project or activity other than for applied research.
The commission may pursuant to this subdivision make a
single source or sole source award for the applied research to be
conducted by the Quiet Motorized Road Vehicle and Safe Mobility
Committee created pursuant to Section 25227 of the Public Resources
Code, if Senate Bill 1174 of the 2007-08 Regular Session, which would
add that section, is enacted.
(f) Until January 1, 2012, the commission
California Energy Board may contract with the Treasurer to
expend funds through programs implemented by the Treasurer, if that
expenditure is consistent with all of the requirements of this
chapter.
SEC. 46.4. Sect ion 44272.5 of the
Health and Safety Code is amended to read:
44272.5. (a) The commission department
shall develop and the California Energy Board shall
adopt an investment plan to determine priorities and opportunities
for the Alternative and Renewable Fuel and Vehicle Technology Program
created pursuant to this chapter. The investment plan shall
establish priorities for investment of funds and technologies to
achieve the goals of this chapter and describe how funding will
complement existing public and private investments, including
existing state programs that further the goals of this chapter. The
commission department shall create and
consult with an advisory body as it develops the investment plan. The
advisory body is subject to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code). The
commission California Energy Board shall, at a
minimum, hold one public hearing on the advisory body's
recommendations prior to approving the investment plan.
(b) Membership of the advisory body created pursuant to
subdivision (a) shall include, but is not limited to, representatives
of fuel and vehicle technology entities, labor organizations,
environmental organizations, community-based justice and public
health organizations, recreational boaters, consumer advocates,
academic institutions, workforce training groups, and private
industry. The advisory body shall also include representatives from
the Natural Resources Agency, the Business, Transportation
and Housing Agency, the Labor and Workforce Development Agency, and
the California Environmental Protection Agency.
(c) The commission California Energy
Board, shall hold at least three public workshops in different
regions of the state and one public hearing prior to approving the
investment plan. The commission department
shall annually update the plan and the
California Energy Board shall approve the plan. The
commission California Energy Board shall
reconvene and consult with the advisory body created pursuant to
subdivision (a) prior to the department annually updating
the plan and the California Energy Board
approving the plan.
SEC. 46.5. 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 department
. The moneys in the fund, upon appropriation by the
Legislature, shall be expended by the commission
department, by action of the California Energy Board, to
implement the Alternative and Renewable Fuel and Vehicle Technology
Program in accordance with this chapter.
(b) Notwithstanding any other provision of law, the sum of ten
million dollars ($10,000,000) shall be transferred annually from the
Public Interest Research, Development, and Demonstration Fund created
by Section 384 of the Public Utilities Code to the Alternative and
Renewable Fuel and Vehicle Technology Fund. Prior to the award of any
funds from this source, the commission
California Energy Board shall make a determination that the
proposed project will provide benefits to electric or natural gas
ratepayers based upon the commission's
California Energy Board's adopted criteria.
(c) Beginning with the integrated energy policy report adopted
by the California Energy Board in 2011, and in the
subsequent reports adopted thereafter, pursuant to Section 25302 of
the Public Resources Code, the commission
department shall include in the report 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, 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. 46.7. Section 44274 of the Health
and Safety Code is amended to read:
44274. (a) The Air Quality Improvement Program is hereby created.
The program shall be administered by the state board, in
consultation with the districts. The state board shall develop
guidelines to implement the program. Prior to the adoption of the
guidelines, the state board shall hold at least one public hearing.
In addition, the state board shall hold at least three public
workshops with at least one workshop in northern California, one in
the central valley, and one in southern California. The purpose of
the program shall be to fund, upon appropriation by the Legislature,
air quality improvement projects relating to fuel and vehicle
technologies. The primary purpose of the program shall be to fund
projects to reduce criteria air pollutants, improve air quality, and
provide funding for research to determine and improve the air quality
impacts of alternative transportation fuels and vehicles, vessels,
and equipment technologies.
(b) Projects proposed for funding pursuant to subdivision (a)
shall be evaluated based on their proposed or potential reduction of
criteria or toxic air pollutants, cost-effectiveness, contribution to
regional air quality improvement, and ability to promote the use of
clean alternative fuels and vehicle technologies as determined by the
state board, in coordination with the commission
department .
(c) The program shall be limited to competitive grants, revolving
loans, loan guarantees, loans, and other appropriate funding measures
that further the purposes of the program. Projects to be funded
shall include only the following:
(1) On- and off-road equipment projects that are cost effective.
(2) Projects that provide mitigation for off-road gasoline exhaust
and evaporative emissions.
(3) Projects that provide research to determine the air quality
impacts of alternative fuels and projects that study the life-cycle
impacts of alternative fuels and conventional fuels, the emissions of
biofuel and advanced reformulated gasoline blends, and air pollution
improvements and control technologies for use with alternative fuels
and vehicles.
(4) Projects that augment the University of California's
agricultural experiment station and cooperative extension programs
for research to increase sustainable biofuels production and improve
the collection of biomass feedstock.
(5) Incentives for small off-road equipment replacement to
encourage consumers to replace internal combustion engine lawn and
garden equipment.
(6) Incentives for medium- and heavy-duty vehicles and equipment
mitigation, including all of the following:
(A) Lower emission schoolbus programs.
(B) Electric, hybrid, and plug-in hybrid on- and off-road medium-
and heavy-duty equipment.
(C) Regional air quality improvement and attainment programs
implemented by the state or districts in the most impacted regions of
the state.
(7) Workforce training initiatives related to advanced energy
technology designed to reduce air pollution, including
state-of-the-art equipment and goods, and new processes and systems.
Workforce training initiatives funded shall be broad-based
partnerships that leverage other public and private job training
programs and resources. These partnerships may include, though are
not limited to, employers, labor unions, labor-management
partnerships, community organizations, workforce investment boards,
postsecondary education providers including community colleges, and
economic development agencies.
(8) Incentives to identify and reduce emissions from high emitting
light-duty vehicles.
(d) (1) Beginning January 1, 2011, the state board shall submit to
the Legislature a biennial report to evaluate the implementation of
the Air Quality Improvement Program established pursuant to this
chapter.
(2) The report shall include all of the following:
(A) A list of projects funded by the Air Quality Improvement
Account.
(B) The expected benefits of the projects in promoting clean,
alternative fuels and vehicle technologies.
(C) Improvement in air quality and public health, greenhouse gas
emissions reductions, and the progress made toward achieving these
benefits.
(D) The impact of the projects in making progress toward
attainment of state and federal air quality standards.
(E) Recommendations for future actions.
(3) The state board may include the information required to be
reported pursuant to paragraph (1) in an existing report to the
Legislature as the state board deems appropriate.
SEC. 47. Section 3805.5 of the Public Resources Code is repealed.
SEC. 48. Section 3806.5 is added to the Public Resources Code, to
read:
3806.5. "Department" means the Department of Energy.
SEC. 49. Section 3808 of the Public Resources Code is amended to
read:
3808. "Geothermal resources" means geothermal resources
designated by the United States Geological Survey or the Department
of Conservation, or by both.
The Department of Conservation shall periodically review, and
revise as necessary, its designation of geothermal resource areas and
shall transmit any changes to the department.
SEC. 50. Section 3810 of the Public Resources Code is amended to
read:
3810. (a) (1) "Award repayment or program reimbursement
agreement," including a "royalty agreement," as specified in
subdivision (b), means a method used at the discretion of the
department to determine and establish the terms of replenishment of
program funds, including, at a minimum, repayment of the award to
provide for further awards under this chapter. The award repayment or
program reimbursement agreement may provide that payments be made to
the department when the award recipient, affiliate of the award
recipient, or third party receives, through any kind of transaction,
an economic benefit from the project, invention, or product
developed, made possible, or derived, in whole or in part, as a
result of the award.
(2) An award repayment or program reimbursement agreement shall
specify the method to be used by the department to determine and
establish the terms of repayment and reimbursement of the award.
(3) The department may require due diligence of the award
recipient and may take any action that is necessary to bring the
project, invention, or product to market.
(4) Subject to the confidentiality requirements of Section 2505 of
Title 20 of the California Code of Regulations, the department may
require access to financial, sales, and production information, and
to other agreements involving transactions of the award recipient,
affiliates of the award recipient, and third parties, as necessary,
to ascertain the royalties or other payments due the department.
(b) A "royalty agreement" is an award repayment or program
reimbursement agreement and is subject to all of the following
conditions:
(1) The royalty rate shall be determined by the department and
shall not exceed 5 percent of the gross revenue derived from the
project, invention, or product.
(2) The royalty agreement shall specify the method to be used by
the department to determine and establish the terms of payment of the
royalty rate.
(3) The department shall determine the duration of the royalty
agreement and may negotiate a collection schedule.
(4) The department, for separate consideration, may negotiate and
receive payments to provide for an early termination of the royalty
agreement.
(c) (1) The department may require that the intellectual property
developed, made possible, or derived, in whole or in part, as a
result of the award repayment or program reimbursement agreement,
revert to the state upon a default in the terms of the award
repayment or program reimbursement agreement or royalty agreement.
(2) The department may require advance notice of any transaction
involving intellectual property rights.
SEC. 51. Section 3822 of the Public Resources Code is amended to
read:
3822. (a) Thirty percent of the revenues received and deposited
in the Geothermal Resources Development Account shall be available
for expenditure by the department as grants or loans to local
jurisdictions or private entities without regard to fiscal years.
These revenues shall be held by the department in the Local
Government Geothermal Resources Revolving Subaccount, which is hereby
created in the Geothermal Resources Development Account. Loan
repayments shall be deposited in the subaccount and shall be used for
making additional grants and loans pursuant to Section 3823.
(b) No local jurisdiction shall be eligible to apply for a grant
or loan pursuant to this section unless its governing body approves
the application by resolution.
(c) Each recipient of a grant or loan made pursuant to this
section shall establish, for the deposit of the revenues, an account
or fund that is separate from the other accounts and funds of the
recipient, and may expend the revenues only for the purposes
specified in this chapter.
(d) The department shall make grants and loans pursuant to this
section irrespective of whether a local jurisdiction is a county of
origin.
(e) Any of the revenues that are not disbursed as grants or loans
pursuant to this section during the fiscal year received shall be
retained in the subaccount and may be disbursed as grants or loans
pursuant to this section in succeeding fiscal years.
(f) (1) Any loan made under this section shall:
(A) Not exceed 80 percent of the local jurisdiction's costs.
(B) Be repaid together with interest within 20 years from receipt
of the loan funds.
(2) Notwithstanding any other provision of law, the department
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not lower than the
Pooled Money Investment Account.
(g) Any loan or grant made to a private entity under this section
shall (1) be matched with at least an equal investment by the
recipient, (2) provide tangible benefits, as determined by the
department, to a local jurisdiction, and (3) be approved by the city,
county, or Indian reservation within which the project is to be
located.
(h) The department may require an award repayment or program
reimbursement agreement of any recipient of a grant or loan made
pursuant to this section.
SEC. 52. Section 3822.1 of the Public Resources Code is amended to
read:
3822.1. Notwithstanding any other provision of law, commencing
with the 1984-85 fiscal year and in each fiscal year thereafter, any
revenues not granted pursuant to Section 3822 remaining in the
Geothermal Resources Development Account and any revenues expected to
be received and disbursed during the 1984-85 fiscal year and in each
fiscal year thereafter shall be made a part of the Governor's
Budget. Projects approved by the department under this chapter shall
be submitted for review and comment to the Department of Finance, the
Legislative Analyst, and the Joint Legislative Budget Committee when
the Legislature is in session. After a 30-day period, the department
shall execute the funding agreements. The department shall submit to
the Legislature by April 1 of each year, a list of projects, in
priority order, selected and approved during the previous year.
SEC. 53. Section 3822.2 of the Public Resources Code is amended to
read:
3822.2. (a) Notwithstanding any other provision of law, the
department may expend funds, from that portion of the Geothermal
Resources Development Account used by the department for grants and
loans, to provide direct technical assistance to local jurisdictions
which are eligible for grants and loans pursuant to Section 3822.
(b) The total of all amounts expended pursuant to this section
shall not exceed 5 percent of all funds available under Section 3822
or one hundred thousand dollars ($100,000), whichever amount is less.
(c) In making expenditures under this section, the department
shall consider, but not be limited to a consideration of, all of the
following:
(1) The availability of energy resource and technology
opportunities.
(2) The project definition and likelihood of success.
(3) Local needs and potential project benefits.
SEC. 54. Section 4799.16 of the Public Resources Code is amended
to read:
4799.16. The department shall coordinate its activities and
cooperate with the Department of Energy in the development of
surveys, studies, and research concerning the utilization of wood
waste and forest growth for energy. The department shall also
coordinate its activities with other public and private agencies to
ensure that the activities of the department and those other agencies
are not duplicative and the maximum benefit occurs from actions
taken by the department to carry out its responsibilities pursuant to
this chapter.
SEC. 55. Section 6815.2 of the Public Resources Code is amended to
read:
6815.2. (a) Notwithstanding Section 6815.1, the commission may
take any oil, gas, or other hydrocarbons taken in kind by it,
pursuant to any lease or agreement, and exchange it, by competitive
bidding, for refined products that shall be allocated to state
agencies and to other public agencies, if the California Energy
Board, after a public hearing, finds, in its judgment, that the
retention and allocation is necessary to alleviate fuel shortage
conditions or will effect a substantial cost saving to the state.
(b) The commission may make and enter into contracts or agreements
for exchange of oil, gas, and other hydrocarbons taken in kind for
finished products required for use by state and other public
agencies. These contracts or agreements shall be entered into by
competitive bids. The commission may reject all bids, if it
determines that they are not in the public interest.
(c) The commission shall charge the state or other public agencies
allocated refined products the current market price of these
products including all applicable taxes. This price shall not be less
than the value of the oil, gas, or other hydrocarbons that would
have been received by the state if not taken in kind. The revenue
shall be subject to the terms and conditions enumerated in Section
6217. The taxes generated by these sales shall be distributed
according to applicable provisions of the Revenue and Taxation Code.
(d) The refined products obtained from exchange contracts or
agreements entered into pursuant to this section shall be allocated
to state agencies and to other public agencies in accordance with the
regulations which shall be adopted, after a public hearing, by the
Department of Energy.
(e) (1) Notwithstanding Section 6815.1, if the commission
determines that it is in the best interests of the state, it may
allow another state or public agency to take in kind oil, gas, or
other hydrocarbons acquired by the commission.
(2) The commission shall charge the state or other public agencies
allocated in kind oil, gas, or other hydrocarbons the current market
price of these products, including all applicable taxes. This price
shall not be less than the value of the oil, gas, or other
hydrocarbons that would have been received by the state if not taken
in kind. The commission may also charge for any transportation,
treatment, or other costs associated with taking the in kind royalty.
The revenue shall be subject to the terms and conditions enumerated
in Section 6217. The taxes generated by these sales shall be
distributed according to applicable provisions of the Revenue and
Taxation Code.
SEC. 56. Section 14584 of the Public Resources Code is amended to
read:
14584. (a) Operators of reverse vending machines or processors
may apply to the California Pollution Control Financing Authority for
financing pursuant to Section 44526 of the Health and Safety Code,
as a means of obtaining capital for establishment of a convenience
network. For purposes of Section 44508 of the Health and Safety Code,
"project" includes the establishing of a recycling location pursuant
to the division.
(b) Corporations, companies, or individuals may apply for loan and
grant funds from the Energy Technologies Research, Development, and
Demonstration Account specified in Section 25683 by applying to the
Department of Energy for the purpose of demonstrating equipment for
enhancing recycling opportunities.
SEC. 57. Section 25000.1 of the Public Resources Code is amended
to read:
25000.1. (a) The Legislature further finds and declares that, in
addition to their other ratepayer protection objectives, a principal
goal of electric and natural gas utilities' resource planning and
investment shall be to minimize the cost to society of the reliable
energy services that are provided by natural gas and electricity, and
to improve the environment and to encourage the diversity of energy
sources through improvements in energy efficiency and development of
renewable energy resources, such as wind, solar, and geothermal
energy.
(b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
(c) In calculating the cost effectiveness of energy resources,
including conservation and load management options, the department
shall include a value for any costs and benefits to the environment,
including air quality. The department shall ensure that any values it
develops pursuant to this section are consistent with values
developed by the Public Utilities Commission pursuant to Section
701.1 of the Public Utilities Code. However, if the department
determines that a value developed pursuant to this subdivision is not
consistent with a value developed by the Public Utilities Commission
pursuant to subdivision (c) of Section 701.1 of the Public Utilities
Code, the department may nonetheless use this value if, in the
appropriate record of its proceedings, it states its reasons for
using the value it has selected.
SEC. 58. Section 25005.5 of the Public Resources Code is amended
to read:
25005.5. The Legislature further finds and declares that
information should be acquired and analyzed by the Department of
Energy in order to ascertain future energy problems and
uncertainties, including, but not limited to:
(a) The state's role in production of oil from domestic reserves,
especially within Petroleum Administration for Defense District V.
(b) The production of Alaskan North Slope oil and its projected
use in the state.
(c) Plans of the federal government for development of oil in the
Outer Continental Shelf adjacent to the state.
(d) Impacts of petroleum price increases and projected
conservation measures on the demand for energy and indirect effects
on the need for offshore oil development and Alaskan oil delivery
into the state.
(e) Potential shipment of Alaskan oil through the state.
(f) Proposals for processing petroleum outside the state to supply
the needs within the state.
(g) The impact on the state of national energy policies, including
Project Independence.
SEC. 59. Section 25104 of the Public Resources Code is amended to
read:
25104. "Commission" or "board" means the California Energy Board.
References to the State Energy Resources Conservation and
Development Commission or the California Energy Commission in other
laws shall be to the California Energy Board.
SEC. 60. Section 25104.1 is added to the Public Resources Code, to
read:
25104.1. (a) "Department" means the Department of Energy.
(b) "Office" means the Office of Energy Market Oversight.
SEC. 61. Section 25104.2 is added to the Public Resources Code, to
read:
25104.2. "Secretary" means the Secretary of Energy.
SEC. 62. Section 25106 of the Public Resources Code is amended to
read:
25106. "Adviser" means the public adviser employed by the
department pursuant to Section 25217.1.
SEC. 63. The heading of Chapter 3 (commencing with Section 25200)
of Division 15 of the Public Resources Code is amended to read:
CHAPTER 3. DEPARTMENT OF ENERGY
SEC. 64. Section 25200 of the Public Resources Code is repealed.
SEC. 65. Section 25200 is added to the Public Resources Code, to
read:
25200. (a) The Department of Energy is hereby created in state
government to be headed by the Secretary of Energy who shall be
appointed by the Governor, subject to Senate confirmation, and who
shall hold office at the pleasure of the Governor. The Governor shall
appoint the initial secretary by January 31, 2011.
(b) The Secretary of Energy shall serve as the principal adviser
to the Governor on, and shall assist the Governor in establishing,
major policy and program
matters on electric power and other sources of energy as related to
renewable energy, energy conservation, environmental protection, and
other goals and policies established by this division.
(c) The Secretary of Energy shall have the power of a head of a
department pursuant to Chapter 2 (commencing with Section 11150) of
Part 1 of Division 3 of Title 2 of the Government Code.
(d) The Governor may appoint an Assistant Secretary of Energy who
shall serve at the pleasure of the Governor.
(e) Consistent with the powers set forth in Chapter 2 (commencing
with Section 12850) of Part 2.5 of Division 3 of Title 2 of the
Government Code, the Secretary of Energy shall organize the
department, with the approval of the Governor, in the manner he or
she deems necessary to properly conduct the operations of the
department. Notwithstanding Sections 11042, 11043, and 11157 of the
Government Code, the secretary may employ legal counsel who shall
represent the department and the board in connection with legal
matters and litigation before any boards, agencies, or courts of the
state or federal government.
(f) The department shall be responsible for the planning,
development, and implementation of all major aspects of the state
energy policy, including electricity.
(g) On or before April 1, 2011, the Secretary of Energy shall
submit to the Legislature a proposal to recodify statutory provisions
related to the department, and any other appropriate provisions,
into an Energy Code.
SEC. 66. Section 25201 of the Public Resources Code is repealed.
SEC. 67. Section 25201 is added to the Public Resources Code, to
read:
25201. (a) The Department of Energy hereby succeeds to, and is
vested with, all the powers, duties, responsibilities, obligations,
liabilities, jurisdiction, and rights and privileges of the following
agencies, which shall no longer exist, and shall be known as
predecessor entities:
(1) The State Energy Resources Conservation and Development
Commission, some of whose former functions shall be administrated by
the California Energy Board within the department as provided by law
or directly by the Secretary of Energy.
(2) Electricity Oversight Board.
(b) Any reference in any law, regulation, or guideline to any of
the predecessor entities listed in subdivision (a) shall be deemed to
refer to the Department of Energy or the California Energy Board, as
appropriate, unless the context requires otherwise.
SEC. 68. Section 25202 of the Public Resources Code is repealed.
SEC. 69. Section 25202 is added to the Public Resources Code, to
read:
25202. In addition to the powers, duties, responsibilities,
jurisdiction, and rights and privileges specified in Section 25201,
the Department of Energy hereby succeeds to, and is vested with, all
the powers, duties, responsibilities, obligations, liabilities,
jurisdiction, and rights and privileges of all of the following:
(a) The California Energy Extension Service of the Office of
Planning and Research.
(b) All functions of the Energy Assessment Program or its
successor entity within the Department of General Services.
(c) All functions of the Energy Services Programs or their
successor entities in the Office of the State Architect within the
Department of General Services.
(d) On and after January 1, 2013, all functions of the Department
of Community Services and Development related to the receipt and
administration of federal energy-related programs including the
Low-Income Home Energy Assistance Program Block Grant, provided for
pursuant to the Low-Income Home Energy Assistance Act of 1981, as
amended (42 U.S.C. Sec. 8621 et seq.), and the United States
Department of Energy Weatherization Assistance Program, provided for
pursuant to Title IV of the Energy Conservation and Production Act
(Public Law 94-385, as amended) and pursuant to the United States
Housing and Urban Development Residential Lead-Based Paint Hazard
Reduction Act of 1992 (Public Law 102-550, as amended), and the
receipt and administration of the community service block grants
provided pursuant to Subtitle B of Title VI of Public Law 97-35, as
amended, and administered pursuant to Chapter 9 (commencing with
Section 12725) of Part 2 of Division 3 of Title 2 of the Government
Code.
SEC. 70. Section 25203 of the Public Resources Code is repealed.
SEC. 71. Section 25203 is added to the Public Resources Code, to
read:
25203. (a) There is, in the state government, the California
Energy Board, which is hereby created within the Department of
Energy.
(b) The board shall consist of all of the following:
(1) The Secretary of Energy, who shall serve as the chair of the
board.
(2) Four public members with one member meeting each of the
following requirements:
(A) A person having a background in the field of engineering or
physical science with knowledge in energy supply or conversion
systems.
(B) A member of the State Bar of California with administrative
law experience.
(C) A person having a background in environmental protection or
the study of ecosystems.
(D) An economist with background and experience in the field of
natural resource management.
(3) The President of the California Public Utilities Commission.
(4) The Secretary of the Natural Resources Agency.
(c) The President of the California Public Utilities Commission
and the Secretary of the Natural Resources Agency shall serve as ex
officio, nonvoting members of the board, whose presence shall not be
counted for a quorum or for vote requirements.
(d) (1) The Governor shall appoint the public members of the
board, subject to confirmation by the Senate, for a term of four
years. The public members shall serve staggered terms.
(2) A vacancy shall be filled by the Governor within 30 days of
the date on which a vacancy occurs for the unexpired portion of the
term in which it occurs or for any new term of office. If the
Governor fails to make an appointment for a vacancy within the 30-day
period, the Senate Committee on Rules may make the appointment to
fill the vacancy for the unexpired portion of the term in which the
vacancy occurred or for any new term of office.
(3) Every appointment made by the Governor to the board shall be
subject to the advice and consent of a majority of the members
elected to the Senate.
(4) The terms of office of the public members of the board shall
be for four years. Any vacancy shall be filled by the Governor within
30 days of the date on which a vacancy occurs for the unexpired
portion of the term in which it occurs or for any new term of office.
(5) Members of the predecessor State Energy Resources Conservation
and Development Commission having the qualification specified in
paragraph (2) of subdivision (b) shall continue to serve as public
members of the board for the remainder of the terms they were
appointed to serve on the predecessor commission.
(e) Each member of the board shall represent the state at large
and not any particular area thereof, and shall serve on a full-time
basis.
(f) The secretary may name a designee who may act in the place of
the secretary in hearing any matter before the board, except on any
matter for which the secretary determines he or she may have a
conflict of interest in hearing a case. The participation of the
designee will count for quorum and voting purposes.
(g) The board hereby succeeds to, and is vested with, all powers,
duties, obligations, liabilities, responsibilities, jurisdiction, and
rights and privileges of the predecessor State Energy Resources
Conservation and Development Commission set forth in Chapter 6
(commencing with Section 25500).
(h) Meetings of the board shall be open to the public and shall be
conducted in accordance with the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
(i) The secretary may delegate to the board any duty of the
secretary if the secretary determines that doing so would not
conflict with other responsibilities of the board and that utilizing
the procedures of the board would serve the public interest.
(j) For purposes of this chapter, "board" means the California
Energy Board.
SEC. 72. Section 25204 of the Public Resources Code is repealed.
SEC. 73. Section 25204 is added to the Public Resources Code, to
read:
25204. (a) All regulations, orders, and guidelines adopted by an
entity listed in subdivision (a) of Section 25201 or an entity listed
in Section 25202 with regard to functions of that entity described
in that section, and any of their predecessors in effect on or before
January 1, 2010, shall remain in effect with respect to the programs
and functions for which they were adopted, and shall be fully
enforceable unless and until readopted, amended, or repealed, or
until they expire by their own terms. All proceedings pending before
an entity listed in subdivision (a) of Section 25201 or an entity
listed in Section 25202 shall not abate but continue as proceedings
before the department or commission, as appropriate.
(b) Except as otherwise specified, a statute, law, rule, or
guideline now in force, or that may hereafter be enacted or adopted
that references an entity listed in subdivision (a) of Section 25201,
or an entity listed in Section 25202 with regard to functions of
that entity described in that section, or any of their predecessors
shall mean the Department of Energy.
(c) An action by or against the entities listed in subdivision (a)
of Section 25201 or Section 25202, or any of their predecessors
shall not abate but, except as provided in Section 25227.3, shall
continue in the name of the Department of Energy and the department
shall be substituted for the entities and any of their predecessors
by the court where the action is pending. The substitution shall not
in any way affect the rights of the parties to the action.
SEC. 74. Section 25205 of the Public Resources Code is amended to
read:
25205. (a) A person shall not be a member of the board who,
during the two years prior to appointment on the board, received any
substantial portion of his or her income directly or indirectly from
any electric utility, or who engages in sale or manufacture of any
major component of any facility subject to licensing by the board. A
member of the board shall not be employed by any electric utility,
applicant, or, within two years after he or she ceases to be a member
of the commission, by any person who engages in the sale or
manufacture of any major component of any facility subject to
licensing by the board.
(b) Except as provided in Section 25202, the members of the board
shall not hold any other elected or appointed public office or
position.
(c) The members of the board and all employees of the department
shall comply with all applicable provisions of Section 19251 of the
Government Code.
(d) A person who is a member of the board or employee of the
department shall not participate personally and substantially as a
member of the board or employee of the department, through decision,
approval, disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in a judicial or other proceeding,
hearing, application, request for a ruling, or other determination,
contract, claim, controversy, study, plan, or other particular matter
in which, to his or her knowledge, he or she, his or her spouse,
minor child, or partner, or any organization, except a governmental
agency or educational or research institution qualifying as a
nonprofit organization under state or federal income tax law, in
which he or she is serving, or has served as, officer, director,
trustee, partner, or employee while serving as a member of the board
or employee of the department or within two years prior to his or her
appointment as a member of the board, has a direct or indirect
financial interest.
(e) A person who is a partner, employer, or employee of a member
of the board or employee of the department shall not act as an
attorney, agent, or employee for any person other than the state in
connection with any judicial or other proceeding, hearing,
application, request for a ruling, or other determination, contract,
claim, controversy, study, plan, or other particular matter in which
the board or department is a party or has a direct and substantial
interest.
(f) This section shall not apply if the Attorney General finds
that the interest of the member of the board or employee of the
department is not so substantial as to be deemed likely to affect the
integrity of the services which the state may expect from the member
or employee.
(g) Any person who violates this section is guilty of a felony and
shall be subject to a fine of not more than ten thousand dollars
($10,000) or imprisonment in the state prison, or both.
(h) The amendment of subdivision (d) of this section enacted by
the 1975-76 Regular Session of the Legislature does not constitute a
change in, but is declaratory of, existing law.
SEC. 75. Section 25205.5 is added to the Public Resources Code, to
read:
25205.5. A contract, grant, loan, lease, license, bond, or any
other agreement to which an entity listed in subdivision (a) of
Section 25201, or an entity listed in Section 25202 with regard to
functions of that entity described in that section, or any of their
predecessors are a party shall not be void or voidable by reason of
this act, but shall continue in full force and effect, with the
Department of Energy assuming all the rights, obligations,
liabilities, and duties of the entity and any of its predecessors.
That assumption by the department shall not in any way affect the
rights of the parties to the contract, grant, loan, lease, license,
or agreement. Bonds issued by or on behalf of the entity referred to
in paragraph (1) of subdivision (a) of Section 25201 or the entities
referred to in Section 25202 with regard to the functions transferred
to the department, or issued by or on behalf of any of the
predecessors, on or before January 1, 2011, shall become the
indebtedness of the department. Any ongoing obligations or
responsibilities of the entity or any of its predecessors for
managing and maintaining bond issuances shall be transferred to the
newly created entity without impairment to any security contained in
the bond instrument.
SEC. 76. Section 25206 of the Public Resources Code is repealed.
SEC. 77. Section 25206 is added to the Public Resources Code, to
read:
25206. On and after January 1, 2011, the unexpended balance of
all funds available for use by the entities listed in subdivision (a)
of Section 25201, or the entities listed in Section 25202 for the
performance of functions of these entities described in that section,
or any of their predecessors in carrying out a function transferred
to the Department of Energy shall be available for use by the
department. Unexpended balances shall be utilized consistent with the
purposes for which they were appropriated. All books, documents,
records, and property of the entities shall be transferred to the
department.
SEC. 78. Section 25207 of the Public Resources Code is amended to
read:
25207. The secretary and the public members of the board shall
receive the salary provided for by Chapter 6 (commencing with Section
11550) of Part 1 of Division 3 of Title 2 of the Government Code.
Each member of the board shall receive the necessary traveling and
other expenses incurred in the performance of his or her official
duties. When necessary, the members of the board and the employees of
the department may travel within or without the state.
SEC. 79. Section 25207.5 is added to the Public Resources Code, to
read:
25207.5. (a) An officer or employee of the entities listed in
subdivision (a) of Section 25201 or Section 25202 who is performing a
function transferred to the Department of Energy and who is serving
in the state civil service, other than as a temporary employee, shall
be transferred to the department. The status, position, and rights
of an officer or employee of the entities shall not be affected by
the transfer and shall be retained by the person as an officer or
employee of the department, as the case may be, pursuant to the State
Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code), except as to a
position that is exempt from civil service.
(b) The Department of Energy shall have possession and control of
all records, pages, offices, equipment, supplies, moneys, funds,
appropriations, licenses, permits, agreements, contracts, claims,
judgments, land, and other property, real or personal, connected with
the administration of, or held for, the benefit or use of the
entities listed in subdivision (a) of Section 25201 or for the
performance of the functions listed in Section 25202.
SEC. 79.5. Section 25208 is added to the
Public Resources Code , to read:
25208. (a) The department, in consultation with the Public
Utilities Commission and the Independent System Operator, shall
prepare, and submit to the Governor and the Legislature on or before
January 1, 2012, a report that identifies administrative and
statutory measures that, preserving environmental protections, public
participation, and continuity of existing electric transmission line
siting processes, would improve the siting and licensing process for
electric transmission lines. The report shall include, but is not
limited to, all of the following:
(1) An evaluation and recommendation on whether process
efficiencies or cost-efficiencies could be achieved if transmission
siting was transferred to the Department of Energy.
(2) A review of the impacts on both process efficiency and public
participation of restrictions on communications between applicants,
the public, and staff or decisionmakers.
(3) An assessment of the means for improving coordination with the
licensing activities of local jurisdictions and participation by
other state agencies.
(4) An assessment of organizational structure issues including the
adequacy of the amounts and organization of current technical and
legal resources.
(5) Recommendations for administrative and statutory measures to
improve the siting and licensing process, including recommendations
for the option of siting transmission lines not owned by an
electrical corporation.
(6) Recommendations for administering existing electric
transmission siting applications to ensure continuity and
efficiencies if the report recommends transferring the transmission
siting authority to the Department of Energy.
(b) (1) A report to be submitted pursuant to subdivision (a) 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 January 1, 2016.
SEC. 80. Section 25209 of the Public Resources Code is amended to
read:
25209. Each member of the board shall have one vote. Except as
provided in Section 25211, the affirmative votes of at least three
members shall be required for the transaction of any business of the
board.
SEC. 81. Section 25210 of the Public Resources Code is amended to
read:
25210. The board may hold any hearings and conduct any
investigations in any part of the state necessary to carry out its
powers and duties prescribed by this division and, for those
purposes, has the same powers as are conferred upon heads of
departments of the state by Article 2 (commencing with Section 11180)
of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government
Code.
SEC. 82. Section 25211 of the Public Resources Code is amended to
read:
25211. The board may appoint a committee of not less than two
members of the board to carry on investigations, inquiries, or
hearings that the board has power to undertake or to hold. At least
one member of the board shall attend all public hearings or other
proceedings held pursuant to Chapter 6 (commencing with Section
25500), and all public hearings in biennial report proceedings and
rulemaking proceedings, except that, upon agreement of all parties to
a proceeding who are present at the hearing or proceeding, the
committee may authorize a hearing officer to continue to take
evidence in the temporary absence of a board member. Every order made
by the committee pursuant to the inquiry, investigation, or hearing,
when approved or confirmed by the board and ordered filed in its
office, shall be the order of the board.
SEC. 83. Section 25212 of the Public Resources Code is amended to
read:
25212. Every two years the Governor shall designate a vice
chairman of the board from among its members.
SEC. 84. Section 25213 of the Public Resources Code is amended to
read:
25213. The department and board shall adopt rules and
regulations, as necessary, to carry out the provisions of this
division in conformity with the provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. The department and the board shall make available to
any person upon request copies of proposed regulations, together
with summaries of reasons supporting their adoption.
SEC. 85. Section 25214 of the Public Resources Code is amended to
read:
25214. The department and the board shall maintain their
headquarters in the County of Sacramento. The board shall hold
meetings at times and places as shall be determined by it. All
meetings and hearings of the board shall be open to the public, and
opportunity to be heard with respect to the subject of the hearings
shall be afforded to any person. Upon request, an interested party
may be granted reasonable opportunity to examine any witness
testifying at the hearing.
SEC. 86. Section 25215 of the Public Resources Code is amended to
read:
25215. A member of the board may be removed from office by the
Legislature, by concurrent resolution adopted by a majority vote of
all members elected to each house, for dereliction of duty or
corruption or incompetency.
SEC. 87. Section 25216 of the Public Resources Code is amended to
read:
25216. In addition to other duties specified in this division,
the department shall do all of the following:
(a) Undertake a continuing assessment of trends in the consumption
of electrical energy and other forms of energy and analyze the
social, economic, and environmental consequences of these trends;
carry out directly, or cause to be carried out, energy conservation
measures specified in Chapter 5 (commencing with Section 25400) of
this division; and recommend to the Governor and the Legislature new
and expanded energy conservation measures as required to meet the
objectives of this division.
(b) Collect from electric utilities, gas utilities, and fuel
producers and wholesalers and other sources forecasts of future
supplies and consumption of all forms of energy, including
electricity, and of future energy or fuel production and transporting
facilities to be constructed; independently analyze those forecasts
in relation to statewide estimates of population, economic, and other
growth factors and in terms of the availability of energy resources,
costs to consumers, and other factors; and formally specify
statewide and service area electrical energy demands to be utilized
as a basis for planning the siting and design of electric power
generating and related facilities.
(c) Carry out, or cause to be carried out, under contract or other
arrangements, research and development into alternative sources of
energy, improvements in energy generation, transmission, and siting,
fuel substitution, and other topics related to energy supply, demand,
public safety, ecology, and conservation which are of particular
statewide importance.
SEC. 88. Section 25216.3 of the Public Resources Code is amended
to read:
25216.3. (a) The department shall compile relevant local,
regional, state, and federal land use, public safety, environmental,
and other standards to be met in designing, siting, and operating
facilities in this state; except as provided in subdivision (d) of
Section 25402, adopt standards, except for air and water quality, to
be met in designing or operating facilities to safeguard public
health and safety, which may be different from or more stringent than
those adopted by local, regional, or other state agencies, or by any
federal agency if permitted by federal law; and monitor compliance
and ensure that all facilities are operated in accordance with this
division.
(b) The local, regional, and other state agencies shall advise the
department as to any change in its standards, ordinances, or laws
which are pertinent and relevant to the objective of carrying out the
provisions of this division.
SEC. 89. Section 25216.5 of the Public Resources Code is amended
to read:
25216.5. The department shall do all of the following:
(a) Prescribe the form and content of applications for facilities;
conduct public hearings and take other actions to secure adequate
evaluation of applications; and formally act to approve or disapprove
applications, including specifying conditions under which approval
and continuing operation of any facility shall be permitted.
(b) Prepare an integrated plan specifying actions to be taken in
the event of an impending serious shortage of energy, or a clear
threat to public health, safety, or welfare.
(c) Evaluate policies governing the establishment of rates for
electric power and other sources of energy as related to energy
conservation, environmental protection, and other goals and policies
established in this division, and transmit recommendations for
changes in power-pricing policies and rate schedules to the Governor,
the Legislature, to the Public Utilities Commission, and to publicly
owned electric utilities.
(d) Serve as a central repository within the state government for
the collection, storage, retrieval, and dissemination of data and
information on all forms of energy supply, demand, conservation,
public safety, research, and related subjects. The data and
information shall be derived from all sources, including, but not be
limited to, electric and gas utilities, oil and other energy
producing companies, institutions of higher education, private
industry, public and private research laboratories, private
individuals, and from any
other source that the department determines is necessary to carry
out its objectives under this division. The department may charge and
collect a reasonable fee for retrieving and disseminating any
information to cover the cost of that service. Any funds received by
the department pursuant to this subdivision shall be deposited in the
account and are continuously appropriated for expenditure, by the
department, for purposes of retrieving and disseminating any such
information pursuant to this section.
SEC. 90. Section 25217 of the Public Resources Code is repealed.
SEC. 91. Section 25217.1 of the Public Resources Code is amended
to read:
25217.1. The board shall nominate and the Governor shall appoint
for a term of three years a public adviser to the board who shall be
an attorney admitted to the practice of law in this state and who
shall carry out the provisions of Section 25222 as well as other
duties prescribed by this division or by the board. The adviser may
be removed from office only upon the joint concurrence of four board
members and the Governor.
SEC. 92. Section 25217.5 of the Public Resources Code is repealed.
SEC. 93. Section 25218 of the Public Resources Code is amended to
read:
25218. In addition to other powers specified in this division,
the department may do any of the following:
(a) Apply for and accept grants, contributions, and
appropriations, and award grants consistent with the goals and
objectives of a program or activity the commission is authorized to
implement or administer.
(b) Contract for professional services if the work or services
cannot be satisfactorily performed by its employees or by any other
state agency.
(c) Be sued and sue.
(d) Request and utilize the advice and services of all federal,
state, local, and regional agencies.
(e) Adopt any rule or regulation, or take any action, it deems
reasonable and necessary to carry out this division except those
responsibilities expressly vested in the board.
(f) Adopt rules and regulations, or take any action, it deems
reasonable and necessary to ensure the free and open participation of
any member of the staff in proceedings before the department.
SEC. 94. Section 25218.5 of the Public Resources Code is amended
to read:
25218.5. The provisions specifying any power or duty of the
department or the board shall be liberally construed, in order to
carry out the objectives of this division.
SEC. 95. Section 25219 is added to the Public Resources Code, to
read:
25219. The department shall create a legal subcommittee in order
to collaborate and cooperate in developing a single statewide
position on litigation concerning energy matters within the state.
The subcommittee shall be comprised of:
(a) The secretary, or the department's legal counsel if one has
been employed pursuant to subdivision (e) of Section 25200.
(b) The Deputy Secretary of the Office of Energy Market Oversight
pursuant to Section 25228.4.
(c) The Attorney General.
(d) The President of the California Public Utilities Commission.
SEC. 96. Section 25220 of the Public Resources Code is amended to
read:
25220. (a) As to any matter involving the federal government, or
departments or agencies, that is within the scope of the power and
duties of the department, the department may represent its interest
or the interest of any county, city, state agency, or public district
upon its request, and to that end may correspond, confer, and
cooperate with the federal government, or departments or agencies.
(b) The department may participate as a party, to the extent
that it shall determine, in any proceeding before any federal or
state agency having authority whatsoever to approve or disapprove any
aspect of a proposed facility, receive notice from any applicant of
all applications and pleadings filed subsequently by those applicants
in any of those proceedings, and, by its request, receive copies of
any of the subsequently filed applications and pleadings that it
shall deem necessary.
SEC. 97. Section 25221 of the Public Resources Code is amended to
read:
25221. Upon request of the department, the Attorney General shall
represent the department and the state in litigation concerning
affairs of the department, unless the Attorney General represents
another state agency, in which case the department shall be
authorized to employ other counsel.
SEC. 98. Section 25222 of the Public Resources Code is amended to
read:
25222. The adviser shall ensure that full and adequate
participation by all interested groups and the public at large is
secured in the planning, site and facility certification, energy
conservation, and emergency allocation procedures provided in this
division. The adviser shall insure that timely and complete notice of
board meetings and public hearings is disseminated to all interested
groups and to the public at large. The adviser shall also advise
those groups and the public as to effective ways of participating in
the board's proceedings. The adviser shall recommend to the board
additional measures to ensure open consideration and public
participation in energy planning, site and facility certification,
energy conservation, and emergency allocation proceedings.
SEC. 99. Section 25223 of the Public Resources Code is amended to
read:
25223. (a) Except as provided in subdivision (b), the department
and the board shall make available any information filed or submitted
pursuant to this division under the provisions of the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7, Title 1 of the Government Code.
(b) The department and the board shall keep confidential any
information submitted to the Division of Oil and Gas of the
Department of Conservation that the division determines, pursuant to
Section 3752, to be proprietary.
SEC. 100. Section 25224 of the Public Resources Code is amended to
read:
25224. The department, the board, and other state agencies shall,
to the fullest extent possible, exchange records, reports, material,
and other information relating to energy resources and conservation
and power facilities siting, or any areas of mutual concern, to the
end that unnecessary duplication of effort may be avoided.
SEC. 101. Section 25225 of the Public Resources Code is amended to
read:
25225. (a) Prior to expending any funds for any research,
development, or demonstration program or project relating to vehicles
or vehicle fuels, the department, by action of the board, shall do
both of the following, using existing resources:
(1) Adopt a plan describing any proposed expenditure that sets
forth the expected costs and qualitative as well as quantitative
benefits of the proposed program or project.
(2) Find that the proposed program or project will not duplicate
any other past or present publicly funded California program or
project. This paragraph is not intended to prevent funding for
programs or projects jointly funded with another public agency where
there is no duplication.
(b) Within 120 days from the date of the conclusion of a program
or project subject to subdivision (a) that is funded by the
department, the department shall issue a public report that sets
forth the actual costs of the program or project, the results
achieved and how they compare with expected costs and benefits
determined pursuant to paragraph (1) of subdivision (a), and any
problems that were encountered by the program or project.
(c) This section does not apply to any funds appropriated for
research, development, or demonstration pursuant to a statute that
expressly specifies both of the following:
(1) A vehicle technology or vehicle fuel which is the subject of
the research, development, or demonstration.
(2) The purpose of, or anticipated products of, the research,
development, or demonstration.
SEC. 102. Section 25226 of the Public Resources Code is amended to
read:
25226. (a) The Energy Technologies Research, Development, and
Demonstration Account established under former Section 25683 is
hereby continued in existence, in the General Fund, to be
administered by the department for the purpose of carrying out
Chapter 7.3 (commencing with Section 25630) and Chapter 7.5
(commencing with Section 25650).
(b) The Controller shall deposit in the account all money
appropriated to the account by the Legislature, plus accumulated
interest on that money, and money from loan repayments, interest, and
royalties pursuant to Sections 25630 and 25650, for use by the
department, upon appropriation by the Legislature, for the purposes
specified in Chapter 7.3 (commencing with Section 25630) and Chapter
7.5 (commencing with Section 25650).
SEC. 103. Chapter 3.5 (commencing with Section 25227) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 3.5. OFFICE OF ENERGY MARKET OVERSIGHT
25227. In order to ensure that the interests of the people of
California are served, there is hereby created within the department,
the Office of Energy Market Oversight. Under the direction of the
Secretary of Energy, the office shall perform all of the following
functions:
(a) Oversee the Independent System Operator.
(b) Hear and decide appeals of majority decisions of the
Independent System Operator governing board, as they relate to
matters subject to exclusive state jurisdiction, as specified in
Section 25227.3.
(c) Investigate any matter related to the wholesale market for
electricity to ensure that the interests of California's citizens and
consumers are served, protected, and represented in relation to the
availability of electric transmission and generation and related
costs.
(d) Appear in all relevant proceedings before the Federal Energy
Regulatory Commission on behalf of California energy consumers and as
the representative of the state's energy policy.
25227.1. (a) Any reference in the law to the "Electricity
Oversight Board" shall mean the Office or the
"Office of Energy Market Oversight in the Department
of Energy, as successor to that board. Oversight"
shall mean the Secretary of Energy or the Department of Energy.
(b) The Office of Energy Market Oversight may exercise any right
that exists in the name of the former Electricity Oversight Board and
may pursue and continue to final resolution any claim or right that
exists in the name of the Electricity Oversight Board. It may take an
action in its own name, or may maintain it in the name of the former
Electricity Oversight Board, as it determines will best preserve and
protect the interests of the public in those rights or claims.
(c) An action initiated, joined, or pursued by the Office of
Energy Market Oversight shall not be considered an action by any
other office, division, or commission within the Department of Energy
unless specifically stated in a pleading. The office shall maintain
separation and procedures, as are necessary, to prevent any
inappropriate sharing of personnel or flow of proprietary information
between its market monitoring and investigation functions and any
program or function within the department that has a market interest.
(d) Any pending litigation for which there could be a conflict if
combined with another program reorganized under the Department of
Energy, including, but not limited to, the Federal Energy Regulatory
Commission dockets EL02-60 and EL02-62, and any related appeals or
remands, shall be continued by the Office of Energy Market Oversight
in the name of the Electricity Oversight Board and maintained
separate from all other programs of the department. The office shall
report on the resolution of those cases directly to the legal affairs
office of the Governor.
(e) Other agencies that are parties to, or commenting agencies in,
matters before the Federal Energy Regulatory Commission, on and
after January 1, 2010, shall cooperate with the office to promote
coordination of the state's advocacy with respect to those matters.
25227.2. (a) The Office of Energy Market Oversight shall hear and
decide appeals of majority decisions of the Independent System
Operator governing board relating to matters that are identified in
subdivision (b) as they pertain to the Independent System Operator.
(b) The following matters are subject to California's exclusive
25227.2. The following matters are subject to
California's exclusive jurisdiction:
(1)
(a) Selections by California of governing board
members, as described in Section 345.1 of the Public Utilities Code.
(2)
(b) Matters pertaining to retail electric service or
retail sales of electric energy.
(3)
(c) Ensuring that the purposes and functions of the
Independent System Operator are consistent with the purposes and
functions of California nonprofit public benefit corporations,
including duties of care and conflict-of-interest standards for
directors of the corporations.
(4)
(d) State functions assigned to the Independent System
Operator under state law.
(5)
(e) Open meeting standards and meeting notice
requirements.
(6)
(f) Appointment of advisory representatives
representing state interests.
(7)
(g) Public access to corporate records.
(8)
(h) The amendment of bylaws relevant to these matters.
(c) Only members of the Independent System Operator governing
board may appeal a majority decision of the Independent System
Operator related to any of the matters specified in subdivision (b)
to the Office of Energy Market Oversight.
25227.3. The Office of Energy Market Oversight may do all of the
following:
(a) Investigate any matter related to the wholesale market for
electricity to ensure that the interests of California's citizens and
consumers are served, protected, and represented in relation to the
availability of electric transmission and generation and related
costs.
(b) Appear in all relevant proceedings before the Federal Energy
Regulatory Commission on behalf of California energy consumers and as
the representative of the state's energy policy.
(a)
(c) Accept appropriations, grants, or contributions
from any public source, private foundation, or individual.
(b)
(d) Sue and be sued.
(c)
(e) Contract with state, local, or federal agencies for
services or work required by the office under this chap
ter .
(d)
(f) Contract for or employ any services or work,
including expert witness and attorney services required by the office
that in its opinion cannot satisfactorily be performed by its staff,
by other subdivisions of the department, or by other state agencies.
(e)
(g) Appoint advisory committees from members of other
public agencies and private groups or individuals.
(f)
(h) Hold hearings at the times and places it may deem
proper.
(g)
(i) Issue subpoenas to compel the production of books,
records, papers, accounts, reports, and documents and the attendance
of witnesses.
(h)
(j) Administer oaths.
(i)
(k) Adopt or amend rules and regulations to carry out
the purposes and provisions of this chapter , and to govern
the procedures of the office. .
(j)
(l) Exercise any authority consistent with this chapter
delegated to it by a federal agency or authorized to it by federal
law.
(k)
(m) Under the direction of the secretary, make
recommendations to the Governor and the Legislature.
(l)
(n) Participate in proceedings relevant to the purposes
of this chapter or to the purposes of Division 4.9 (commencing with
Section 9600) of the Public Utilities Code or consistent with the
policies of the department, and participate in activities to promote
the formation of interstate agreements to enhance the reliability and
function of the electricity system and the electricity market.
(m)
(o) Do any and all other things necessary to carry out
the purposes of this chapter.
25228. (a) The Office of Energy Market Oversight may adopt rules
or protective orders to protect the confidential status of market
sensitive information.
(b) Information made confidential pursuant to a federally approved
tariff that is obtained by the department or the office is
confidential and prohibited from disclosure without the consent of
the source of information except as required by a court order or
other legal process.
25228.2. (a) The Office of Energy Market Oversight in the
department succeeds to and is vested with all duties,
responsibilities, powers, jurisdiction, liabilities, and functions of
the Electricity Oversight Board, which is hereby abolished. Any
25228.2. (a) Any remaining
reference in any law to the duties, responsibilities, powers,
and functions of the Electricity Oversight Board, which no longer
exists, shall be considered a reference to the Office of
Energy Market Oversight Secretary of Energy or the
Department of Energy unless the context otherwise requires.
(b) All officers and employees of the Electricity Oversight Board
who, on January 1, 2011, are serving in the state civil service,
other than as temporary employees, shall be transferred to the
Department of Energy pursuant to Section 19050.9 of the Government
Code. The status, position, and rights of any officer or employee of
the board shall not be affected by the transfer and shall be retained
by the person as an officer or employee of the department, as the
case may be, pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), except as to a position that is exempt from civil
service.
(c) As soon as practicable, the Secretary of Energy shall report
to the Department of Finance on whether the resources transferred to
the department are sufficient to ensure that all of the state's
interests can be adequately represented under subdivision (d) of
Section 25227. The Department of Finance shall assess whether the
consolidation of this function under the department allows the
transfer of any resources previously used to support this function
within any other agency to the department.
25228.4. The Governor may appoint, and fix the salary of, a
deputy who shall have charge of administering the affairs of
the Office of Energy Market Oversight, including entering into
contracts responsibilities of this chapter ,
subject to policies of the department. Notwithstanding Sections 11042
and 11043 of the Government Code, the secretary shall appoint an
attorney who shall advise and represent the office and the People of
the State of California as a party in any state or federal action,
proceeding, or litigation related to the purposes of this
chapter or to an action of the office and who shall perform generally
all the duties of attorney with respect to the office.
this chapter and who shall perform generally all the duties of
an attorne y with respect to the purposes of this chapter.
SEC. 104. Section 25301 of the Public Resources Code is amended to
read:
25301. (a) At least every two years, the department shall conduct
assessments and forecasts of all aspects of energy industry supply,
production, transportation, delivery and distribution, demand, and
prices. The department shall use these assessments and forecasts to
develop energy policies that conserve resources, protect the
environment, ensure energy reliability, enhance the state's economy,
and protect public health and safety. To perform these assessments
and forecasts, the department may require submission of demand
forecasts, resource plans, market assessments, and related outlooks
from electric and natural gas utilities, transportation fuel and
technology suppliers, and other market participants. These
assessments and forecasts shall be done in consultation with the
Independent System Operator and the appropriate state and federal
agencies, including, but not limited to, the Public Utilities
Commission, the Division of Ratepayer Advocates, the State Air
Resources Board, the Department of Water Resources, the State
Department of Transportation, and the Department of Motor Vehicles.
(b) In developing the assessments and forecasts prepared pursuant
to subdivision (a), the department shall do all of the following:
(1) Provide information about the performance of energy
industries.
(2) Develop and maintain the analytical capability sufficient to
answer inquiries about energy issues from government, market
participants, and the public.
(3) Analyze and develop energy policies.
(4) Provide an analytical foundation for regulatory and policy
decisionmaking.
(5) Facilitate efficient and reliable energy markets.
SEC. 105. Section 25302 of the Public Resources Code is amended to
read:
25302. (a) Beginning November 1, 2003, and every two years
thereafter, the board shall adopt an integrated energy policy report.
This integrated report shall contain an overview of major energy
trends and issues facing the state, including, but not limited to,
supply, demand, pricing, reliability, efficiency, and impacts on
public health and safety, the economy, resources, and the
environment. Energy markets and systems shall be grouped and assessed
in three subsidiary volumes:
(1) Electricity and natural gas markets.
(2) Transportation fuels, technologies, and infrastructure.
(3) Public interest energy strategies.
(b) The department shall compile the integrated energy policy
report prepared pursuant to subdivision (a) by consolidating the
analyses and findings of the subsidiary volumes in paragraphs (1),
(2), and (3) of subdivision (a). The integrated energy policy report
shall present policy recommendations based on an indepth and
integrated analysis of the most current and pressing energy issues
facing the state. The analyses supporting this integrated energy
policy report shall explicitly address interfuel and intermarket
effects to provide a more informed evaluation of potential tradeoffs
when developing energy policy across different markets and systems.
(c) The integrated energy policy report shall include an
assessment and forecast of system reliability and the need for
resource additions, efficiency, and conservation that considers all
aspects of energy industries and markets that are essential for the
state economy, general welfare, public health and safety, energy
diversity, and protection of the environment. This assessment shall
be based on determinations made pursuant to this chapter.
(d) Beginning November 1, 2004, and every two years thereafter,
the department shall prepare an energy policy review to update
analyses from the integrated energy policy report prepared pursuant
to subdivisions (a), (b), and (c), or to raise energy issues that
have emerged since the release of the integrated energy policy
report. The department may also periodically prepare and release
technical analyses and assessments of energy issues and concerns to
provide timely and relevant information for the Governor, the
Legislature, market participants, and the public.
(e) In preparation of the report, the department shall consult
with the following entities: the Public Utilities Commission, the
Division of Ratepayer Advocates, the State Air Resources Board, the
Independent System Operator, the Department of Water Resources, the
State Department of Transportation, and the Department of Motor
Vehicles, and any federal, state, and local agencies it deems
necessary in preparation of the integrated energy policy report. To
ensure collaborative development of state energy policies, these
agencies shall make a good faith effort to provide data, assessment,
and proposed recommendations for review by the department.
(f) The department shall provide the report to the Public
Utilities Commission, the Division of Ratepayer Advocates, the State
Air Resources Board, the Independent System Operator, the Department
of Water Resources, and the Department of Transportation. For the
purpose of ensuring consistency in the underlying information that
forms the foundation of energy policies and decisions affecting the
state, those entities shall carry out their energy-related duties and
responsibilities based upon the information and analyses contained
in the report. If an entity listed in this subdivision objects to
information contained in the report, and has a reasonable basis for
that objection, the entity shall not be required to consider that
information in carrying out its energy-related duties.
(g) The department shall make the report accessible to state,
local, and federal entities and to the general public.
SEC. 106. Section 25303 of the Public Resources Code is amended to
read:
25303. (a) The department shall conduct electricity and natural
gas forecasting and assessment activities to meet the requirements of
paragraph (1) of subdivision (a) of Section 25302, including, but
not limited to, all of the following:
(1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth, including, but not
limited to, projected population growth, urban development,
industrial expansion and energy intensity of industries, energy
demand for different building types, energy efficiency, and other
factors influencing demand for electricity. With respect to
long-range forecasts of the demand for natural gas, the report shall
include an evaluation of average conditions, as well as best and
worst case scenarios, and an evaluation of the impact of the
increasing use of renewable resources on natural gas demand.
(3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems, including, but not limited
to, natural gas production capability
both in and out of state, natural gas interstate and
intrastate pipeline capacity, storage and use, and western regional
and California electricity and transmission system capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
(5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end-user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
(6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the department shall
propose market structure changes to improve performance.
(7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
(8) (A) Compilation and assessment of existing scientific studies
that have been performed by persons or entities with expertise and
qualifications in the subject of the studies to determine the
potential vulnerability to a major disruption due to aging or a major
seismic event of large baseload generation facilities, of 1,700
megawatts or greater.
(B) The assessment specified in subparagraph (A) shall include an
analysis of the impact of a major disruption on system reliability,
public safety, and the economy.
(C) The department may work with other public entities and public
agencies, including, but not limited to, the Public Utilities
Commission, the Department of Conservation, and the Seismic Safety
Commission as necessary, as well as the Independent System Operator,
to gather and analyze the information required by this paragraph.
(D) Upon completion and publication of the initial review of the
information required pursuant to this paragraph, the department shall
perform subsequent updates as new data or new understanding of
potential seismic hazards emerge.
(b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the department shall assess the current
status of the following:
(1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
(A) Generation facility efficiency.
(B) Air emission control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
(2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
(c) In the absence of a long-term nuclear waste storage facility,
the department shall assess the potential state and local costs and
impacts associated with accumulating waste at California's nuclear
powerplants. The department shall further assess other key policy and
planning issues that will affect the future role of nuclear
powerplants in the state.
SEC. 107. Section 25304 of the Public Resources Code is amended to
read:
25304. The department shall conduct transportation forecasting
and assessment activities to meet the requirements of paragraph (2)
of subdivision (a) of Section 25302, including, but not limited to:
(a) Assessment of trends in transportation fuels, technologies,
and infrastructure supply and demand and the outlook for wholesale
and retail prices for petroleum, petroleum products, and alternative
transportation fuels under current market structures and expected
market conditions.
(b) Forecasts of statewide and regional transportation energy
demand, both annual and seasonal, and the factors leading to
projected demand growth, including, but not limited to, projected
population growth, urban development, vehicle miles traveled, the
type, class, and efficiency of personal vehicles and commercial
fleets, and shifts in transportation modes.
(c) Evaluation of the sufficiency of transportation fuel supplies,
technologies, and infrastructure to meet projected transportation
demand growth. Assessment of crude oil and other transportation fuel
feedstock supplies; in-state, national, and worldwide production and
refining capacity; product output storage availability; and
transportation and distribution systems capacity and use.
(d) Assessments of the risks of supply disruptions, price shocks,
or other events and the consequences of these events on the
availability and price of transportation fuels and effects on the
state's economy.
(e) Evaluation of the potential for needed changes in the state's
energy shortage contingency plans to increase production and
productivity, improve efficiency of fuel use, increase conservation
of resources, and other actions to maintain sufficient, secure, and
affordable transportation fuel supplies for the state.
(f) Evaluation of alternative transportation energy scenarios, in
the context of least environmental and economic costs, to examine
potential effects of alternative fuels usage, vehicle efficiency
improvements, and shifts in transportation modes on public health and
safety, the economy, resources, the environment, and energy
security.
(g) Examination of the success of introduction, prices, and
availability of advanced transportation technologies, low- or
zero-emission vehicles, and clean-burning transportation fuels,
including their potential future contributions to air quality, energy
security, and other public interest benefits.
(h) Recommendations to improve the efficiency of transportation
energy use, reduce dependence on petroleum fuels, decrease
environmental impacts from transportation energy use, and contribute
to reducing congestion, promoting economic development, and enhancing
energy diversity and security.
SEC. 108. Section 25305 of the Public Resources Code is amended to
read:
25305. The department shall rely upon forecasting and assessments
performed in accordance with Sections 25301 to 25304, inclusive, as
the basis for analyzing the success of and developing policy
recommendations for public interest energy strategies. Public
interest energy strategies include, but are not limited to, achieving
energy efficiency and energy conservation; implementing load
management; pursuing research, development, demonstration, and
commercialization of new technologies; promoting renewable generation
technologies; reducing statewide greenhouse gas emissions and
addressing the impacts of climate change on California; stimulating
California's energy-related business activities to contribute to the
state's economy; and protecting and enhancing the environment.
Additional assessments to address public interest energy strategies
shall include, but are not limited to, all of the following:
(a) Identification of emerging trends in energy efficiency in the
residential, commercial, industrial, agricultural, and transportation
sectors of the state's economy, including, but not limited to,
evaluation of additional achievable energy efficiency measures and
technologies. Identification of policies that would permit fuller
realization of the potential for energy efficiency, either through
direct programmatic actions or facilitation of the market.
(b) Identification of emerging trends in the renewable energy
industry. In addition, the department shall evaluate progress in
ensuring the operation of existing facilities, and the development of
new and emerging, in-state renewable resources.
(c) Identification of emerging trends in energy research,
development, and demonstration activities that advance science or
technology to produce public benefits.
(d) Identification of progress in reducing statewide greenhouse
gas emissions and addressing the effects of climate change on
California.
SEC. 109. Section 25305.5 of the Public Resources Code is amended
to read:
25305.5. The department shall include in its report prepared
pursuant to Sections 25301 to 25304, inclusive, a description of
international energy market prospects and an evaluation of its export
promotion activities, as well as an assessment of the state of the
California energy technology and energy conservation industry's
efforts to enter foreign markets. The report shall also include
recommendations for state government initiatives to foster the
California energy technology and energy conservation industry's
competition in world markets.
SEC. 110. Section 25306 of the Public Resources Code is amended to
read:
25306. The department shall conduct workshops, hearings, and
other forums to gain the perspectives of the public and market
participants for purposes of the integrated energy policy report
prepared pursuant to Section 25302 and the forecasting and
assessments prepared pursuant to Sections 25301, 25303, 25304, and
25305. The department shall include the comments, as well as
responses to those comments, of governmental agencies, industry
representatives, market participants, private groups, and any other
person concerning the department's proposals and recommendations in
the docket for the integrated energy policy report.
SEC. 111. Section 25310 of the Public Resources Code is amended to
read:
25310. On or before November 1, 2007, and by November 1 of every
third year thereafter, the department in consultation with the Public
Utilities Commission and local publicly owned electric utilities, in
a public process that allows input from other stakeholders, shall
develop a statewide estimate of all potentially achievable
cost-effective electricity and natural gas efficiency savings and
establish targets for statewide annual energy efficiency savings and
demand reduction for the next 10-year period. The department shall
base its estimate at least in part on information developed pursuant
to Sections 454.55, 454.56, 715, 9615, and 9615.5 of the Public
Utilities Code. The department shall, for each electrical corporation
and each gas corporation, include in the integrated energy policy
report, a comparison of the public utility's annual targets
established pursuant to Sections 454.55 and 454.56, and the public
utility's actual energy efficiency savings and demand reductions.
SEC. 112. Section 25320 of the Public Resources Code is amended to
read:
25320. (a) The department shall manage a data collection system
for obtaining information necessary to develop the policy reports and
analyses required by Sections 25301 to 25307, inclusive, the energy
shortage contingency planning efforts in Chapter 8 (commencing with
Section 25700), and to support other duties of the department.
(b) The data collection system, adopted by regulation under
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and managed by the department
shall:
(1) Include a timetable for the submission of this information, so
that the integrated energy policy report required by Section 25302
can be completed in an accurate and timely manner.
(2) Require a person to submit only information that is reasonably
relevant, and that the person can either be expected to acquire
through his or her market activities, or possesses or controls.
Information collected pursuant to this section shall relate to the
functional role of each category of market participant in that
industry and the consumers within that industry.
(3) To the extent it satisfies the information needs of the
department, rely on the use of estimates and proxies, to the maximum
extent practicable, for some data elements using survey and research
techniques, while for other information it shall obtain data from
market participants using submissions consistent with their
accounting records. In determining whether to rely upon estimates or
participant provided data, the department shall weigh the burden of
compliance upon industry participants and energy consumers against
the benefit of participant-provided data for the public interest.
(4) To the extent it satisfies the information needs of the
department, rely on data, to the maximum extent practicable, that is
reported to other government agencies or is otherwise available to
the department.
(c) Pursuant to the requirements of subdivision (b), the data
collection system for electricity and natural gas shall enumerate
specific requirements for each category of market participants,
including, but not limited to, private market participants, energy
service providers, energy service companies, natural gas marketers,
electric utility and natural gas utility companies, independent
generators, electric transmission entities, natural gas producers,
natural gas pipeline operators, importers and exporters of
electricity and natural gas, and specialized electric or natural gas
system operators. The department may also collect information about
consumers' natural gas and electricity use from their voluntary
participation in surveys and other research techniques.
(d) Pursuant to the requirements of subdivision (b), the data
collection system for nonpetroleum fuels and transportation
technologies shall enumerate specific requirements for each category
of market participant, including, but not limited to, fuel importers
and exporters, fuel distributors and retailers, fuel pipeline
operators, natural gas liquid producers, and transportation
technology providers. The department may also collect information
about consumers' nonpetroleum fuel and transportation technology use
from their voluntary participation in surveys and other research
techniques.
(e) The department shall collect data for petroleum fuel pursuant
to Chapter 4.5 (commencing with Section 25350). The department may
also collect information about consumers' petroleum fuel use from
consumers' participation in surveys and other research techniques.
SEC. 113. Section 25321 of the Public Resources Code is amended to
read:
25321. In order to ensure timely and accurate compliance with the
data collection system adopted under Section 25320, the department
may use any of the following enforcement measures:
(a) If any person fails to comply with an applicable provision of
the data collection system, the department shall notify the person.
If, after five working days from being notified of the violation, the
person continues to fail to comply, the person shall be subject to a
civil penalty, to be imposed by the department after a hearing that
complies with constitutional requirements.
(1) The civil penalty shall not be less than five hundred dollars
($500) nor more than two thousand dollars ($2,000) for each category
of data the person did not provide and for each day the violation has
existed and continues to exist.
(2) In the case of a person who willfully makes any false
statement, representation, or certification in any record, report,
plan, or other document filed with the department, the civil penalty
shall not be less than five hundred dollars ($500) nor more than two
thousand dollars ($2,000) per day applied to each day in the interval
between the original due date and the date when corrected
information is submitted.
(b) For the purposes of this section, "person" means, in addition
to the definition contained in Section 25116, any responsible
corporate officer.
(c) Enforcement measures for petroleum and other fuels shall be
those contained in Section 25362.
SEC. 114. Section 25322 of the Public Resources Code is amended to
read:
25322. (a) The data collection system managed pursuant to Section
25320 shall include the following requirements regarding the
confidentiality of the information collected by the department:
(1) Any person required to present information to the department
pursuant to this section may request that specific information be
held in confidence. The department shall grant the request in any of
the following circumstances:
(A) The information is exempt from disclosure under the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
(B) The information satisfies the confidentiality requirements of
Article 2 (commencing with Section 2501) of Chapter 7 of Division 2
of Title 20 of the California Code of Regulations, as those
regulations existed on January 1, 2002.
(C) On the facts of the particular case, the public interest
served by not disclosing the information clearly outweighs the public
interest served by disclosure of the information.
(2) The department may, by regulation, designate certain
categories of information as confidential, which removes the
obligation to request confidentiality for that information.
(3) Any confidential information pertinent to the responsibilities
of the department specified in this chapter that is obtained by
another state agency, or the California Independent System Operator
or its successor, shall be available to the department and shall be
treated in a confidential manner.
(4) Information presented to or developed by the department and
deemed confidential pursuant to this section shall be held in
confidence by the department. Confidential information shall be
aggregated or masked to the extent necessary to ensure
confidentiality if public disclosure of the specific information
would result in an unfair competitive disadvantage to the person
supplying the information.
(b) Requests for records of information shall be handled as
follows:
(1) If the department receives a written request to publicly
disclose information that is being held in confidence pursuant to
paragraph (1) or (2) of subdivision (a), the department shall provide
the person making the request with written justification for the
confidential designation and a description of the process to seek
disclosure.
(2) If the department receives a written request to publicly
disclose a disaggregated or unmasked record of information designated
as confidential under paragraph (1) or (2) of subdivision (a),
notice of the request shall be provided to the person that submitted
the record. Upon receipt of the notice, the person that submitted the
record may, within five working days of receipt of the notice,
provide a written justification of the claim of confidentiality.
(3) The department or its designee shall rule on a request made
pursuant to paragraph (2) on or before 20 working days after its
receipt. The department shall deny the request if the disclosure will
result in an unfair competitive disadvantage to the person that
submitted the information.
(4) If the department grants the request pursuant to paragraph
(3), it shall withhold disclosure for a reasonable amount of time,
not to exceed 14 working days, to allow the submitter of the
information to seek judicial review.
(c) Information submitted to the department pursuant to this
section is not confidential if the person submitting the information
has made it public.
(d) The department shall establish, maintain, and use appropriate
security practices and procedures to ensure that the information it
has designated as confidential, or received with a confidential
designation from another government agency, is protected against
disclosure other than that authorized using the procedures in
subdivision (b). The department shall incorporate the following
elements into its security practices and procedures:
(1) Department employees shall sign a confidential data
disclosure agreement providing for various remedies, including, but
not limited to, fines and termination for wrongful disclosure of
confidential information.
(2) Department employees, or contract employees of the
department, shall only have access to confidential information when
it is appropriate to their job assignments and if they have signed a
nondisclosure agreement.
(3) Computer data systems that hold confidential information shall
include sufficient security measures to protect the data from
inadvertent or wrongful access by unauthorized department employees
and the public.
(e) Data collected by the department on petroleum fuels in Section
25320 shall be subject to the confidentiality provisions of Sections
25364 to 25366, inclusive.
SEC. 115. Section 25323 of the Public Resources Code is amended to
read:
25323. This division does not authorize the department in the
performance of its analytical, planning, siting, or certification
responsibilities to mandate a specified supply plan for any utility.
SEC. 116. Section 25324 of the Public Resources Code is amended to
read:
25324. The department, in consultation with the Public Utilities
Commission, the California Independent System Operator, transmission
owners, users, and consumers, shall develop and the board shall adopt
a strategic plan for the state's electric transmission grid using
existing resources. The strategic plan shall identify and recommend
actions required to implement investments needed to ensure
reliability, relieve congestion, and meet future growth in load and
generation, including, but not limited to, renewable resources,
energy efficiency, and other demand reduction measures. The plan
shall be included in each integrated energy policy report adopted
pursuant to subdivision (a) of Section 25302.
SEC. 117. Section 25331 of the Public Resources Code is amended to
read:
25331. (a) The board may designate a transmission corridor zone
on its own motion or by application of a person who plans to
construct a high-voltage electric transmission line within the state.
The designation of a transmission corridor zone shall serve to
identify a feasible corridor where one or more future high-voltage
electric transmission lines can be built that are consistent with the
state's needs and objectives as set forth in the strategic plan
adopted pursuant to Section 25324.
(b) A person planning to construct a high-voltage electric
transmission line may submit to the board an application to designate
a proposed transmission corridor zone as being consistent with the
strategic plan adopted pursuant to Section 25324. The application
shall be in the form prescribed by the board and shall be supported
by any information that the board may require.
SEC. 118. Section 25332 of the Public Resources Code is amended to
read:
25332. The designation of a transmission corridor zone is subject
to the California Environmental Quality Act (Division 13 (commencing
with Section 21000)). The department shall be the lead agency, as
provided in Section 21165, for all transmission corridor zones
proposed for designation pursuant to this chapter.
SEC. 119. Section 25333 of the Public Resources Code is amended to
read:
25333. (a) In developing a strategic plan pursuant to Section
25324 or considering an application for designation pursuant to this
chapter, the department shall confer with cities and counties,
federal agencies, and California Native American tribes to identify
appropriate areas within their jurisdictions that may be suitable for
a transmission corridor zone. The department shall, to the extent
feasible, coordinate efforts to identify long-term transmission needs
of the state with the land use plans of cities, counties, federal
agencies, and California Native American tribes.
(b) The board shall not designate a transmission corridor zone
within the jurisdiction of a California Native American tribe without
the approval of the California Native American tribe.
SEC. 120. Section 25334 of the Public Resources Code is amended to
read:
25334. (a) Upon receipt of an application or upon its own motion
for designation of a transmission corridor zone, the board shall
arrange for the publication of a summary of the application in a
newspaper of general circulation in each county where the proposed
transmission corridor zone would be located, and shall notify all
property owners within, or adjacent to, the transmission corridor
zone. The department shall transmit a copy of the application for
designation to all cities, counties, and state and federal agencies
having an interest in the proposed transmission corridor zone. The
department shall publish the application for designation on its
Internet Web site, and notify members of the public that the
application is available on the department's Internet Web site.
(b) As soon as practicable after the receipt of an application or
upon the board's motion for designation of a transmission corridor
zone, the department shall notify cities, counties, state and federal
agencies, and California Native American tribes in whose
jurisdictions the proposed transmission corridor zone would be
located regarding the proposed transmission corridor zone and the
objectives of the most recent strategic plan for the state's electric
transmission grid. The department's notice shall solicit information
from, and the department shall confer with, all interested cities,
counties, state and federal agencies, and California Native American
tribes regarding their land use plans, existing land uses, and other
factors in which they have expertise or interest with respect to the
proposed transmission corridor zone. The department shall provide any
interested city, county, state or federal agency, California Native
American tribe, or member of the public, including any property owner
within the proposed transmission corridor
zone, ample opportunity to participate in the
board's review of a proposed transmission corridor zone.
(c) The department shall request affected cities, counties, state
and federal agencies, the Electricity Oversight Board,
the Independent System Operator, interested California
Native American tribes, and members of the public, including any
property owner within the proposed transmission corridor zone, to
provide comments on the suitability of the proposed transmission
corridor zone with respect to environmental, public health and
safety, land use, economic, and transmission-system impacts or other
factors on which they may have expertise.
(d) The department shall require a person who files an application
for the designation of a transmission corridor zone to pay a fee
sufficient to reimburse the department for all costs associated with
reviewing the application. If the board initiates the designation of
a transmission corridor zone on its own motion, the department shall
fix the surcharge imposed pursuant to subdivision (b) of Section
40016 of the Revenue and Taxation Code, at a level sufficient to
cover the department's added costs.
(e) Upon receiving the department's request for review of a
proposed transmission corridor zone, a city or county may request a
fee pursuant to Section 25538 to cover the actual and added costs of
this review and the department shall pay this amount to the city or
county.
SEC. 121. Section 25335 of the Public Resources Code is amended to
read:
25335. (a) Within 45 days of receipt of the application or motion
for designation, the board shall commence public informational
hearings in the county or counties where the proposed transmission
corridor zone would be located.
(b) The purpose of the hearings shall be to do all of the
following:
(1) Provide information about the proposed transmission corridor
zone so that the public and interested agencies have a clear
understanding of what is being proposed.
(2) Explain the relationship of the proposed transmission corridor
zone to the board's strategic plan for the state's electric
transmission grid, as set forth in the most recent integrated energy
policy report adopted pursuant to Chapter 4 (commencing with Section
25300).
(3) Receive initial comments about the proposed transmission
corridor zone from the public and interested agencies.
(4) Solicit information on reasonable alternatives to the proposed
transmission corridor zone.
SEC. 122. Section 25336 of the Public Resources Code is amended to
read:
25336. (a) Within 155 days of the final informational hearing,
the board shall conduct a prehearing conference to determine the
issues to be considered in hearings pursuant to this section, to
identify the dates for the hearings, and to set forth filing dates
for public comments and testimony from the parties and interested
agencies. Within 15 days of the prehearing conference, the board
shall issue a hearing order setting forth the issues to be heard, the
dates of the hearings, and the filing dates for comments and
testimony.
(b) The board shall conduct hearings pursuant to the hearing
order. The purpose of the hearings shall be to receive information
upon which the board can make findings and conclusions pursuant to
Section 25337.
SEC. 123. Section 25337 of the Public Resources Code is amended to
read:
25337. After the conclusion of hearings conducted pursuant to
Section 25336, and no later than 180 days after the date of
certification of the environmental impact report prepared pursuant to
Section 25332, the board shall issue a proposed decision that
contains its findings and conclusions regarding all of the following
matters:
(a) Conformity of the proposed transmission corridor zone with the
strategic plan adopted pursuant to Section 25324.
(b) Suitability of the proposed transmission corridor zone with
respect to environmental, public health and safety, land use,
economic, and transmission-system impacts.
(c) Mitigation measures and alternatives as may be needed to
protect environmental quality, public health and safety, the state's
electric transmission grid, or any other relevant matter.
(d) Other factors that the board considers relevant.
SEC. 124. Section 25338 of the Public Resources Code is amended to
read:
25338. As soon as practicable after the board designates a
transmission corridor zone, the department shall post a copy of the
board's decision on the department's Internet Web site, send a copy
of the board's decision, including a description of the transmission
corridor zone, to each affected city, county, state agency, and
federal agency, and notify property owners within or adjacent to the
corridor of the availability of the decision on the department's
Internet Web site.
SEC. 125. Section 25339 of the Public Resources Code is amended to
read:
25339. After the board designates a transmission corridor zone,
the department shall identify that transmission corridor zone in its
subsequent strategic plans adopted by the board pursuant to Section
25324. The board shall regularly review and revise its designated
transmission corridor zones as necessary, but not less than once
every 10 years. In revising designations of transmission corridor
zones, the board shall follow the procedures of this chapter. If,
upon regular review or at any other time, the board finds that a
transmission corridor zone is no longer needed, the board shall
revise or repeal the designation and, as soon as practicable, notify
the affected cities, counties, state and federal agencies, and
property owners within, or adjacent to, the transmission corridor
zone.
SEC. 126. Section 25340 of the Public Resources Code is amended to
read:
25340. After receiving notice from the department regarding the
designation or revision by the board of a transmission corridor zone
within its jurisdiction, each city or county shall consider the
designated transmission corridor zone when making a determination
regarding a land use change within or adjacent to the transmission
corridor zone that could affect its continuing viability to
accommodate a transmission line planned within the transmission
corridor zone. Nothing in this section shall preclude compatible uses
within or adjacent to a designated transmission corridor zone.
SEC. 127. Section 25341 of the Public Resources Code is amended to
read:
25341. (a) Within a designated transmission corridor zone, within
10 days of accepting as complete an application pursuant to Section
65943 of the Government Code for a development project that a city or
county determines would threaten the potential to construct a
high-voltage electric transmission line, the city or county shall
notify the board of the proposed development project. The notice
shall include a copy of the application, and set a deadline that is
not less than 60 days from the date of the notice for the board to
provide written comments to the city or county regarding the proposed
development project.
(b) If the board finds that the proposed development project would
threaten the potential to construct a high-voltage electric
transmission line within the designated transmission corridor zone,
the board shall provide written comments to the city or county. The
board may recommend revisions to, redesign of, or mitigation measures
for the proposed development project that would eliminate or reduce
the threat.
(c) The city or county shall consider the board's comments, if
any, prior to acting on the proposed development project. If the
board objects to the proposed development project, the city or county
shall provide a written response that shall address in detail why it
did not accept the board's comments and recommendations.
SEC. 128. Section 25354 of the Public Resources Code is amended to
read:
25354. (a) Each refiner and major marketer shall submit
information each month to the department in the form and extent as
the department prescribes pursuant to this section. The information
shall be submitted within 30 days after the end of each monthly
reporting period and shall include the following:
(1) Refiners shall report, for each of their refineries, feedstock
inputs, origin of petroleum receipts, imports of finished petroleum
products and blendstocks, by type, including the source of those
imports, exports of finished petroleum products and blendstocks, by
type, including the destination of those exports, refinery outputs,
refinery stocks, and finished product supply and distribution,
including all gasoline sold unbranded by the refiner, blender, or
importer.
(2) Major marketers shall report on petroleum product receipts and
the sources of these receipts, inventories of finished petroleum
products and blendstocks, by type, distributions through branded and
unbranded distribution networks, and exports of finished petroleum
products and blendstocks, by type, from the state.
(b) Each major oil producer, refiner, marketer, oil transporter,
and oil storer shall annually submit information to the department in
the form and extent as the department prescribes pursuant to this
section. The information shall be submitted within 30 days after the
end of each reporting period, and shall include the following:
(1) Major oil transporters shall report on petroleum by reporting
the capacities of each major transportation system, the amount
transported by each system, and inventories thereof. The department
may prescribe rules and regulations that exclude pipeline and
transportation modes operated entirely on property owned by major oil
transporters from the reporting requirements of this section if the
data or information is not needed to fulfill the purposes of this
chapter. The provision of the information shall not be construed to
increase or decrease any authority the Public Utilities Commission
may otherwise have.
(2) Major oil storers shall report on storage capacity,
inventories, receipts and distributions, and methods of
transportation of receipts and distributions.
(3) Major oil producers shall, with respect to thermally enhanced
oil recovery operations, report annually by designated oil field, the
monthly use, as fuel, of crude oil and natural gas.
(4) Refiners shall report on facility capacity, and utilization
and method of transportation of refinery receipts and distributions.
(5) Major oil marketers shall report on facility capacity and
methods of transportation of receipts and distributions.
(c) Each person required to report pursuant to subdivision (a)
shall submit a projection each month of the information to be
submitted pursuant to subdivision (a) for the quarter following the
month in which the information is submitted to the department.
(d) In addition to the data required under subdivision (a), each
integrated oil refiner (who produces, refines, transports, and
markets in interstate commerce) who supplies more than 500 branded
retail outlets in California shall submit to the department an annual
industry forecast for Petroleum Administration for Defense, District
V (covering Alaska, Arizona, California, Hawaii, Nevada, Oregon, and
Washington). The forecast shall include the information to be
submitted under subdivision (a), and shall be submitted by March 15
of each year. The department may require California-specific
forecasts. However, those forecasts shall be required only if the
department finds them necessary to carry out its responsibilities.
(e) The department may by order or regulation modify the reporting
period as to any individual item of information setting forth in the
order or regulation its reason for so doing.
(f) The department may request additional information as necessary
to perform its responsibilities under this chapter.
(g) Any person required to submit information or data under this
chapter, in lieu thereof, may submit a report made to any other
governmental agency, if:
(1) The alternate report or reports contain all of the information
or data required by specific request under this chapter.
(2) The person clearly identifies the specific request to which
the alternate report is responsive.
(h) Each refiner shall submit to the department, within 30 days
after the end of each monthly reporting period, all of the following
information in such form and extent as the department prescribes:
(1) Monthly California weighted average prices and sales volumes
of finished leaded regular, unleaded regular, and premium motor
gasoline sold through company-operated retail outlets, to other
end-users, and to wholesale customers.
(2) Monthly California weighted average prices and sales volumes
for residential sales, commercial and institutional sales, industrial
sales, sales through company-operated retail outlets, sales to other
end-users, and wholesale sales of No. 2 diesel fuel and No. 2 fuel
oil.
(3) Monthly California weighted average prices and sales volumes
for retail sales and wholesale sales of No. 1 distillate, kerosene,
finished aviation gasoline, kerosene-type jet fuel, No. 4 fuel oil,
residual fuel oil with 1 percent or less sulfur, residual fuel oil
with greater than 1 percent sulfur, and consumer grade propane.
(i) (1) Beginning the first week after the effective date of the
act that added this subdivision, and each week thereafter, an oil
refiner, oil producer, petroleum product transporter, petroleum
product marketer, petroleum product pipeline operator, and terminal
operator, as designated by the department, shall submit a report in
the form and extent as the department prescribes pursuant to this
section. The department may determine the form and extent necessary
by order or by regulation.
(2) A report may include any of the following information:
(A) Receipts and inventory levels of crude oil and petroleum
products at each refinery and terminal location.
(B) Amount of gasoline, diesel, jet fuel, blending components, and
other petroleum products imported and exported.
(C) Amount of gasoline, diesel, jet fuel, blending components, and
other petroleum products transported intrastate by marine vessel.
(D) Amount of crude oil imported, including information
identifying the source of the crude oil.
(E) The regional average of invoiced retailer buying price. This
subparagraph does not either preclude or augment the current
authority of the department to collect additional data under
subdivision (f).
(3) This subdivision is intended to clarify the department's
existing authority under subdivision (f) to collect specific
information. This subdivision does not either preclude or augment the
existing authority of the department to collect information.
SEC. 129. Section 25356 of the Public Resources Code is amended to
read:
25356. (a) The department, utilizing its own staff and other
support staff having expertise and experience in, or with, the
petroleum industry, shall gather, analyze, and interpret the
information submitted to it pursuant to Section 25354 and other
information relating to the supply and price of petroleum products,
with particular emphasis on motor vehicle fuels, including, but not
limited to, all of the following:
(1) The nature, cause, and extent of any petroleum or petroleum
products shortage or condition affecting supply.
(2) The economic and environmental impacts of any petroleum and
petroleum product shortage or condition affecting supply.
(3) Petroleum or petroleum product demand and supply forecasting
methodologies utilized by the petroleum industry in California.
(4) The prices, with particular emphasis on retail motor fuel
prices, including sales to unbranded retail markets, and any
significant changes in prices charged by the petroleum industry for
petroleum or petroleum products sold in California and the reasons
for those changes.
(5) The profits, both before and after taxes, of the industry as a
whole and of major firms within it, including a comparison with
other major industry groups and major firms within them as to
profits, return on equity and capital, and price-earnings ratio.
(6) The emerging trends relating to supply, demand, and
conservation of petroleum and petroleum products.
(7) The nature and extent of efforts of the petroleum industry to
expand refinery capacity and to make acquisitions of additional
supplies of petroleum and petroleum products, including activities
relative to the exploration, development, and extraction of resources
within the state.
(8) The development of a petroleum and petroleum products
information system in a manner that will enable the state to take
action to meet and mitigate any petroleum or petroleum products
shortage or condition affecting supply.
(b) The department shall analyze the impacts of state and federal
policies and regulations upon the supply and pricing of petroleum
products.
SEC. 130. Section 25357 of the Public Resources Code is amended to
read:
25357. The department shall obtain and analyze monthly production
reports prepared by the State Oil and Gas Supervisor pursuant to
Section 3227.
SEC. 131. Section 25358 of the Public Resources Code is amended to
read:
25358. (a) Within 70 days after the end of each preceding quarter
of each calendar year, the department shall publish and submit to
the Governor and the Legislature a summary, an analysis, and an
interpretation of the information submitted to it pursuant to Section
25354 and information reviewed pursuant to Section 25357. This
report shall be separate from the report submitted pursuant to
Section 25302. Any person may submit comments in writing regarding
the accuracy or sufficiency of the information submitted.
(b) The department shall prepare a biennial assessment of the
information provided pursuant to this chapter and shall include its
assessment in the biennial fuels report prepared pursuant to Section
25310.
(c) The department may use reasonable means necessary and
available to it to seek and obtain any facts, figures, and other
information from any source for the purpose of preparing and
providing reports to the Governor and the Legislature. The department
shall specifically include in the reports its analysis of any
unsuccessful attempts in obtaining information from potential
sources, including the lack of cooperation or refusal to provide
information.
(d) Whenever the department fails to provide any report required
pursuant to this section within the specified time, it shall provide
to all members of the Legislature, within five days of the specified
time, a detailed written explanation of the cause of any delay.
SEC. 132. Section 25362 of the Public Resources Code is amended to
read:
25362. (a) The department shall notify those persons who have
failed to timely provide the information specified in Section 25354.
If, within five days after being notified of the failure to provide
the specified information, the person fails to supply the specified
information, the person shall be subject to a civil penalty of not
less than five hundred dollars ($500) nor more than two thousand
dollars ($2,000) per day for each day the submission of information
is refused or delayed, unless the person has timely filed objections
with the department regarding the information and the department has
not yet held a hearing on the matter, or the department has held a
hearing and the person has properly submitted the issue to a court of
competent jurisdiction for review.
(b) Any person who willfully makes any false statement,
representation, or certification in any record, report, plan, or
other document filed with the department shall be subject to a civil
penalty not to exceed two thousand dollars ($2,000).
(c) For the purposes of this section, the term "person" shall
mean, in addition to the definition contained in Section 25116, any
responsible corporate officer.
SEC. 133. Section 25364 of the Public Resources Code is amended to
read:
25364. (a) A person required to present information to the
department pursuant to Section 25354 may request that specific
information be held in confidence. Information requested to be held
in confidence shall be presumed to be confidential.
(b) Information presented to the department pursuant to Section
25354 shall be held in confidence by the department or aggregated to
the extent necessary to ensure confidentiality if public disclosure
of the specific information or data would result in unfair
competitive disadvantage to the person supplying the information.
(c) (1) Whenever the department receives a request to publicly
disclose unaggregated information, or otherwise proposes to publicly
disclose information submitted pursuant to Section 25354, notice of
the request or proposal shall be provided to the person submitting
the information. The notice shall indicate the form in which the
information is to be released. Upon receipt of notice, the person
submitting the information shall have 10 working days in which to
respond to the notice to justify the claim of confidentiality on each
specific item of information covered by the notice on the basis that
public disclosure of the specific information would result in unfair
competitive disadvantage to the person supplying the information.
(2) The department shall consider the respondent's submittal in
determining whether to publicly disclose the information submitted to
it to which a claim of confidentiality is made. The department shall
issue a written decision that sets forth its reasons for making the
determination whether each item of information for which a claim of
confidentiality is made shall remain confidential or shall be
publicly disclosed.
(d) The department shall not make public disclosure of information
submitted to it pursuant to Section 25354 within 10 working days
after the department has issued its written decision required in this
section.
(e) Information submitted to the department pursuant to Section
25354 shall not be deemed confidential if the person submitting the
information or data has made it public.
(f) With respect to petroleum products and blendstocks reported by
type pursuant to paragraph (1) or (2) of subdivision (a) of Section
25354 and information provided pursuant to subdivision (h) or (i) of
Section 25354, neither the board members nor any employee of the
department may do any of the following:
(1) Use the information furnished under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 for any purpose other than the statistical purposes for
which it is supplied.
(2) Make any publication whereby the information furnished by any
particular establishment or individual under paragraph (1) or (2) of
subdivision (a) of Section 25354 or under subdivision (h) or (i) of
Section 25354 can be identified.
(3) Permit anyone other than board members and employees of the
department to examine the individual reports provided under paragraph
(1) or (2) of subdivision (a) of Section 25354 or under subdivision
(h) or (i) of Section 25354.
(g) Notwithstanding any other provision of law, the department may
disclose confidential information received pursuant to subdivision
(a) of Section 25304 or Section 25354 to the State Air Resources
Board if the state board agrees to keep the information confidential.
With respect to the information it receives, the state board shall
be subject to all pertinent provisions of this section.
SEC. 134. Section 25366 of the Public Resources Code is amended to
read:
25366. Any confidential information pertinent to the
responsibilities of the department specified in this division that is
obtained by another state agency shall be available to the
department and shall be treated in a confidential manner.
SEC. 135. Section 25400 of the Public Resources Code is amended to
read:
25400. The department shall conduct an ongoing assessment of the
opportunities and constraints presented by all forms of energy. The
department shall encourage the balanced use of all sources of energy
to meet the state's needs and shall seek to avoid possible
undesirable consequences of reliance on a single source of energy.
SEC. 136. Section 25401 of the Public Resources Code is amended to
read:
25401. (a) The department shall continuously carry out studies,
research projects, data collection, and other activities required to
assess the nature, extent, and distribution of energy resources to
meet the needs of the state, including, but not limited to, fossil
fuels and solar, nuclear, and geothermal energy resources. It shall
also carry out studies, technical assessments, research projects, and
data collection directed to reducing wasteful, inefficient,
unnecessary, or uneconomic uses of energy, including, but not limited
to, all of the following:
(1) Pricing of electricity and other forms of energy.
(2) Improved building design and insulation.
(3) Restriction of promotional activities designed to increase
the use of electrical energy by consumers.
(4) Improved appliance efficiency.
(5) Advances in power generation and transmission technology.
(6) Comparisons in the efficiencies of alternative methods of
energy utilization.
(b) The department shall survey pursuant to this section all
forms of energy on which to base its recommendations to the Governor
and Legislature for elimination of waste or increases in efficiency
for sources or uses of energy. The department shall transmit to the
Governor and the Legislature, as part of the biennial report
specified in Section 25302, recommendations for state policy and
actions for the orderly development of all potential sources of
energy to meet the state's needs, including, but not limited to,
fossil fuels and solar, nuclear, and geothermal energy resources, and
to reduce wasteful and inefficient uses of energy.
SEC. 137. Section 25401.2 of the Public Resources Code is amended
to read:
25401.2. (a) As part of the report required by Section 25302, the
department shall develop and update an inventory of current and
potential cost-effective opportunities in each utility's service
territory, to improve efficiencies and to help utilities manage loads
in all sectors of natural gas and electricity use. The report shall
include estimates of the overall magnitude of these resources, load
shapes, and the projected costs associated with delivering the
various types of energy savings that are identified in the inventory.
The report shall also estimate the amount and incremental cost per
unit of potential energy efficiency and load management activities.
Where applicable, the inventory shall include data on variations in
savings and costs associated
with particular measures. The report shall take into consideration
environmental benefits as developed in related department and Public
Utilities Commission proceedings.
(b) The department shall develop and maintain the inventory in
consultation with electric and gas utilities, the Public Utilities
Commission, academic institutions, and other interested parties.
(c) The department shall convene a technical advisory group to
develop an analytical framework for the inventory, to discuss the
level of detail at which the inventory would operate, and to ensure
that the inventory is consistent with other demand-side databases.
Privately owned electric and gas utilities shall provide financial
support, gather data, and provide analysis for activities that the
technical advisory group recommends. The technical advisory group
shall terminate on January 1, 1993.
SEC. 138. Section 25401.5 of the Public Resources Code is amended
to read:
25401.5. For the purpose of reducing electrical and natural gas
energy consumption, the department may develop and disseminate
measures that would enhance energy efficiency for single-family
residential dwellings that were built prior to the development of the
current energy efficiency standards. The measures, if developed and
disseminated, shall provide a homeowner with information to improve
the energy efficiency of a single-family residential dwelling. The
department may comply with this section by posting the measures on
the department's Internet Web site or by making the measures
available to the public, upon request.
SEC. 139. Section 25401.6 of the Public Resources Code is amended
to read:
25401.6. (a) In its administration of Section 25744, the
department shall establish a separate rebate for eligible distributed
emerging technologies for affordable housing projects, including,
but not limited to, projects undertaken pursuant to Section 50052.5,
50053, or 50199.4 of the Health and Safety Code. In establishing the
rebate, where the department determines that the occupants of the
housing shall have individual meters, the department may adjust the
amount of the rebate based on the capacity of the system, provided
that a system may receive a rebate only up to 75 percent of the total
installed costs. The department may establish a reasonable limit on
the total amount of funds dedicated for purposes of this section.
(b) It is the intent of the Legislature that this section fulfills
the purpose of paragraph (5) of subdivision (b) of Section 25744.
SEC. 140. Section 25401.7 of the Public Resources Code is amended
to read:
25401.7. At the time a single-family residential dwelling is
sold, a buyer or seller may request a home inspection, as defined in
subdivision (a) of Section 7195 of the Business and Professions Code,
and a home inspector, as defined in subdivision (d) of Section 7195
of the Business and Professions Code, shall provide contact
information for one or more of the following entities that provide
home energy information:
(a) A nonprofit organization.
(b) A provider to the residential dwelling of electrical service
or gas service, or both.
(c) A government agency, including, but not limited to, the
department.
SEC. 141. Section 25401.9 of the Public Resources Code is amended
to read:
25401.9. (a) To the extent that funds are available, the board,
in consultation with the Department of Water Resources, shall adopt
by regulation, after holding one or more public hearings, performance
standards and labeling requirements for landscape irrigation
equipment, including, but not limited to, irrigation controllers,
moisture sensors, emission devices, and valves, for the purpose of
reducing the wasteful, uneconomic, inefficient, or unnecessary
consumption of energy or water.
(b) For the purposes of complying with subdivision (a), the board
shall do all of the following:
(1) Adopt performance standards and labeling requirements for
landscape irrigation controllers and moisture sensors on or before
January 1, 2010.
(2) Consider the Irrigation Association's Smart Water Application
Technology Program testing protocols when adopting performance
standards for landscape irrigation equipment, including, but not
limited to, irrigation controllers, moisture sensors, emission
devices, and valves.
(3) Prepare and submit a report to the Legislature, on or before
January 1, 2010, that sets forth a proposed schedule for adopting
performance standards and labeling requirements for emission devices
and valves.
(c) On and after January 1, 2012, an irrigation controller or
moisture sensor for landscape irrigation uses may not be sold or
installed in the state unless the controller or sensor meets the
performance standards and labeling requirements established pursuant
to this section.
SEC. 142. Section 25402 of the Public Resources Code is amended to
read:
25402. The board, with the support of the department, shall,
after one or more public hearings, do all of the following, in order
to reduce the wasteful, uneconomic, inefficient, or unnecessary
consumption of energy, including the energy associated with the use
of water:
(a) (1) Prescribe, by regulation, lighting, insulation climate
control system, and other building design and construction standards
that increase the efficiency in the use of energy and water for new
residential and new nonresidential buildings. The board shall
periodically update the standards and adopt any revision that, in its
judgment, it deems necessary. Six months after the board certifies
an energy conservation manual pursuant to subdivision (c) of Section
25402.1, a city, county, city and county, or state agency shall not
issue a permit for any building unless the building satisfies the
standards prescribed by the board pursuant to this subdivision or
subdivision (b) that are in effect on the date an application for a
building permit is filed. Water efficiency standards adopted pursuant
to this subdivision shall be demonstrated by the board to be
necessary to save energy.
(2) Prior to adopting a water efficiency standard for residential
buildings, the Department of Housing and Community Development and
the board shall issue a joint finding whether the standard (A) is
equivalent or superior in performance, safety, and for the protection
of life, health, and general welfare to standards in Title 24 of the
California Code of Regulations and (B) does not unreasonably or
unnecessarily impact the ability of Californians to purchase or rent
affordable housing, as determined by taking account of the overall
benefit derived from water efficiency standards. Nothing in this
subdivision in any way reduces the authority of the Department of
Housing and Community Development to adopt standards and regulations
pursuant to Part 1.5 (commencing with Section 17910) of Division 13
of the Health and Safety Code.
(3) Water efficiency standards and water conservation design
standards adopted pursuant to this subdivision and subdivision (b)
shall be consistent with the legislative findings of this division to
ensure and maintain a reliable supply of electrical energy and be
equivalent to or superior to the performance, safety, and protection
of life, health, and general welfare standards contained in Title 24
of the California Code of Regulations. The board shall consult with
the members of the coordinating council as established in Section
18926 of the Health and Safety Code in the development of these
standards.
(b) (1) Prescribe, by regulation, energy and water conservation
design standards for new residential and new nonresidential
buildings. The standards shall be performance standards and shall be
promulgated in terms of energy consumption per gross square foot of
floorspace, but may also include devices, systems, and techniques
required to conserve energy and water. The board shall periodically
review the standards and adopt any revision that, in its judgment, it
deems necessary. A building that satisfies the standards prescribed
pursuant to this subdivision need not comply with the standards
prescribed pursuant to subdivision (a). Water conservation design
standards adopted pursuant to this subdivision shall be demonstrated
by the board to be necessary to save energy. Prior to adopting a
water conservation design standard for residential buildings, the
Department of Housing and Community Development and the board shall
issue a joint finding whether the standard (A) is equivalent or
superior in performance, safety, and for the protection of life,
health, and general welfare to standards in the California Building
Standards Code and (B) does not unreasonably or unnecessarily impact
the ability of Californians to purchase or rent affordable housing,
as determined by taking account of the overall benefit derived from
the water conservation design standards. Nothing in this subdivision
in any way reduces the authority of the Department of Housing and
Community Development to adopt standards and regulations pursuant to
Part 1.5 (commencing with Section 17910) of Division 13 of the Health
and Safety Code.
(2) In order to increase public participation and improve the
efficacy of the standards adopted pursuant to this subdivision and
subdivision (a), the board shall, prior to publication of the notice
of proposed action required by Section 18935 of the Health and Safety
Code, involve parties who would be subject to the proposed
regulations in public meetings regarding the proposed regulations.
All potential affected parties shall be provided advance notice of
these meetings and given an opportunity to provide written or oral
comments. During these public meetings, the board shall receive and
take into consideration input from all parties concerning the parties'
design recommendations, cost considerations, and other factors that
would affect consumers and California businesses of the proposed
standard. The board shall take into consideration prior to the start
of the notice of proposed action any input provided during these
public meetings.
(3) The standards adopted or revised pursuant to this subdivision
and subdivision (a) shall be cost-effective when taken in their
entirety and when amortized over the economic life of the structure
compared with historic practice. When determining cost-effectiveness,
the board shall consider the value of the water or energy saved,
impact on product efficacy for the consumer, and the life cycle cost
of complying with the standard. The board shall consider other
relevant factors, as required by Sections 18930 and 18935 of the
Health and Safety Code, including, but not limited to, the impact on
housing costs, the total statewide costs and benefits of the standard
over its lifetime, economic impact on California businesses, and
alternative approaches and their associated costs.
(c) (1) Prescribe, by regulation, standards for minimum levels of
operating efficiency, based on a reasonable use pattern, and may
prescribe other cost-effective measures, including incentive
programs, fleet averaging, energy and water consumption labeling not
preempted by federal labeling law, and consumer education programs,
to promote the use of energy and water efficient appliances whose
use, as determined by the board, requires a significant amount of
energy or water on a statewide basis. The minimum levels of operating
efficiency shall be based on feasible and attainable efficiencies or
feasible and improved efficiencies that will reduce the energy or
water consumption growth rates. The standards shall become effective
no sooner than one year after the date of adoption or revision. No
new appliance manufactured on or after the effective date of the
standards may be sold or offered for sale in the state, unless it is
certified by the manufacturer thereof to be in compliance with the
standards. The standards shall be drawn so that they do not result in
any added total costs for consumers over the designed life of the
appliances concerned.
In order to increase public participation and improve the efficacy
of the standards adopted pursuant to this subdivision, the board
shall, prior to publication of the notice of proposed action required
by Section 18935 of the Health and Safety Code, involve parties who
would be subject to the proposed regulations in public meetings
regarding the proposed regulations. All potential affected parties
shall be provided advance notice of these meetings and given an
opportunity to provide written or oral comments. During these public
meetings, the board shall receive and take into consideration input
from all parties concerning the parties' design recommendations, cost
considerations, and other factors that would affect consumers and
California businesses of the proposed standard. The board shall take
into consideration prior to the start of the notice of proposed
action any input provided during these public meetings.
The standards adopted or revised pursuant to this subdivision
shall not result in any added total costs for consumers over the
designed life of the appliances concerned. When determining
cost-effectiveness, the board shall consider the value of the water
or energy saved, impact on product efficacy for the consumer, and the
life cycle cost to the consumer of complying with the standard. The
board shall consider other relevant factors, as required by Sections
11346.5 and 11357 of the Government Code, including, but not limited
to, the impact on housing costs, the total statewide costs and
benefits of the standard over its lifetime, economic impact on
California businesses, and alternative approaches and their
associated costs.
(2) A new appliance, except for any plumbing fitting, regulated
under paragraph (1), that is manufactured on or after July 1, 1984,
shall not be sold, or offered for sale, in the state, unless the date
of the manufacture is permanently displayed in an accessible place
on that appliance.
(3) During the period of five years after the board has adopted a
standard for a particular appliance under paragraph (1), no increase
or decrease in the minimum level of operating efficiency required by
the standard for that appliance shall become effective, unless the
board adopts other cost-effective measures for that appliance.
(4) Neither the board nor any other state agency shall take any
action to decrease any standard adopted under this subdivision on or
before June 30, 1985, prescribing minimum levels of operating
efficiency or other energy conservation measures for any appliance,
unless the board finds by a four-fifths vote that a decrease is of
benefit to ratepayers, and that there is significant evidence of
changed circumstances. Before January 1, 1986, the board shall not
take any action to increase a standard prescribing minimum levels of
operating efficiency for any appliance or adopt a new standard under
paragraph (1). Before January 1, 1986, any appliance manufacturer
doing business in this state shall provide directly, or through an
appropriate trade or industry association, information, as specified
by the board after consultation with manufacturers doing business in
the state and appropriate trade or industry associations on sales of
appliances so that the board may study the effects of regulations on
those sales. These informational requirements shall remain in effect
until the information is received. The trade or industry association
may submit sales information in an aggregated form in a manner that
allows the board to carry out the purposes of the study. The board
and the department shall treat any sales information of an individual
manufacturer as confidential and that information shall not be a
public record. The board shall not request any information that
cannot be reasonably produced in the exercise of due diligence by the
manufacturer. At least one year prior to the adoption or amendment
of a standard for an appliance, the board shall notify the
Legislature of its intent, and the justification to adopt or amend a
standard for the appliance. Notwithstanding paragraph (3) and this
paragraph, the board may do any of the following:
(A) Increase the minimum level of operating efficiency in an
existing standard up to the level of the National Voluntary Consensus
Standards 90, adopted by the American Society of Heating,
Refrigeration, and Air Conditioning Engineers or, for appliances not
covered by that standard, up to the level established in a similar
nationwide consensus standard.
(B) Change the measure or rating of efficiency of any standard, if
the minimum level of operating efficiency remains substantially the
same.
(C) Adjust the minimum level of operating efficiency in an
existing standard in order to reflect changes in test procedures that
the standards require manufacturers to use in certifying compliance,
if the minimum level of operating efficiency remains substantially
the same.
(D) Readopt a standard preempted, enjoined, or otherwise found
legally defective by an administrative agency or a lower court, if
final legal action determines that the standard is valid and if the
standard that is readopted is not more stringent than the standard
that was found to be defective or preempted.
(E) Adopt or amend any existing or new standard at any level of
operating efficiency, if the Governor has declared an energy
emergency as described in Section 8558 of the Government Code.
(5) Notwithstanding paragraph (4), the board may adopt standards
pursuant to the former State Energy Resources Conservation and
Development Commission Order No. 84-0111-1, on or before June 30,
1985.
(d) Recommend minimum standards of efficiency for the operation of
any new facility at a particular site that are technically and
economically feasible. No site and related facility shall be
certified pursuant to Chapter 6 (commencing with Section 25500),
unless the applicant certifies that standards recommended by the
board have been considered, which certification shall include a
statement specifying the extent to which conformance with the
recommended standards will be achieved.
Whenever this section and Chapter 11.5 (commencing with Section
19878) of Part 3 of Division 13 of the Health and Safety Code are in
conflict, the board shall be governed by that chapter of the Health
and Safety Code to the extent of the conflict.
(e) The board shall do all of the following:
(1) Not later than January 1, 2004, amend any regulations in
effect on January 1, 2003, pertaining to the energy efficiency
standards for residential clothes washers to require that residential
clothes washers manufactured on or after January 1, 2007, be at
least as water efficient as commercial clothes washers.
(2) Not later than April 1, 2004, petition the federal Department
of Energy for an exemption from any relevant federal regulations
governing energy efficiency standards that are applicable to
residential clothes washers.
(3) Not later than January 1, 2005, report to the Legislature on
its progress with respect to the requirements of paragraphs (1) and
(2).
SEC. 143. Section 25402.1 of the Public Resources Code is amended
to read:
25402.1. In order to implement the requirements of subdivisions
(a) and (b) of Section 25402, the department shall do all of the
following:
(a) Develop a public domain computer program that will enable
contractors, builders, architects, engineers, and government
officials to estimate the energy consumed by residential and
nonresidential buildings. The department may charge a fee for the use
of the program, which fee shall be based upon the actual cost of the
program, including any computer costs.
(b) Establish a formal process for certification of compliance
options for new products, materials, and calculation methods which
provides for adequate technical and public review to ensure accurate,
equitable, and timely evaluation of certification applications.
Proponents filing applications for new products, materials, and
calculation methods shall provide all information needed to evaluate
the application that is required by the department. The department
shall publish annually the results of its certification decisions and
instructions to users and local building officials concerning
requirements for showing compliance with the building standards for
new products, materials, or calculation methods. The department may
charge and collect a reasonable fee from applicants to cover the
costs under this subdivision. Any funds received by the department
for purposes of this subdivision shall be deposited in the Energy
Resources Programs Account and, notwithstanding Section 13340 of the
Government Code, are continuously appropriated to the department for
the purposes of this subdivision. Any unencumbered portion of funds
collected as a fee for an application remaining in the Energy
Resources Programs Account after completion of the certification
process for that application shall be returned to the applicant
within a reasonable period of time.
(c) Include a prescriptive method of complying with the standards,
including design aids such as a manual, sample calculations, and
model structural designs.
(d) Conduct a pilot project of field testing of actual residential
buildings to calibrate and identify potential needed changes in the
modeling assumptions to increase the accuracy of the public domain
computer program specified in subdivision (a) and to evaluate the
impacts of the standards, including, but not limited to, the energy
savings, cost effectiveness, and the effects on indoor air quality.
The pilot project shall be conducted pursuant to a contract entered
into by the department. The department shall consult with the
participants designated pursuant to Section 9202 of the Public
Utilities Code to seek funding and support for field monitoring in
each public utility service territory, with the University of
California to take advantage of its extensive building monitoring
expertise, and with the California Building Industry Association to
coordinate the involvement of builders and developers throughout the
state. The pilot project shall include periodic public workshops to
develop plans and review progress. The department shall prepare and
submit a report to the Legislature on progress and initial findings
not later than December 31, 1988, and a final report on the results
of the pilot project on residential buildings not later than June 30,
1990. The report shall include recommendations regarding the need
and feasibility of conducting further monitoring of actual
residential and nonresidential buildings. The report shall also
identify any revisions to the public domain computer program and
energy conservation standards if the pilot project determines that
revisions are appropriate.
(e) Certify, not later than 180 days after approval of the
standards by the California Building Standards Commission, an energy
conservation manual for use by designers, builders, and contractors
of residential and nonresidential buildings. The manual shall be
furnished upon request at a price sufficient to cover the costs of
production and shall be distributed at no cost to all affected local
agencies. The manual shall contain, but not be limited to, the
following:
(1) The standards for energy conservation established by the
board.
(2) Forms, charts, tables, and other data to assist designers and
builders in meeting the standards.
(3) Design suggestions for meeting or exceeding the standards.
(4) Any other information that the department finds will assist
persons in conforming to the standards.
(5) Instructions for use of the computer program for calculating
energy consumption in residential and nonresidential buildings.
(6) The prescriptive method for use as an alternative to the
computer program.
(f) The department shall establish a continuing program of
technical assistance to local building departments in the enforcement
of subdivisions (a) and (b) of Section 25402 and this section. The
program shall include the training of local officials in building
technology and enforcement procedures related to energy conservation,
and the development of complementary training programs conducted by
local governments, educational institutions, and other public or
private entities. The technical assistance program shall include the
preparation and publication of forms and procedures for local
building departments in performing the review of building plans and
specifications. The department shall provide, on a contract basis, a
review of building plans and specifications submitted by a local
building department, and shall adopt a schedule of fees sufficient to
repay the cost of those services.
(g) Subdivisions (a) and (b) of Section 25402 and this section,
and the rules and regulations of the board adopted pursuant thereto,
shall be enforced by the building department of every city, county,
or city and county.
(1) No building permit for any residential or nonresidential
building shall be issued by a local building department, unless a
review by the building department of the plans for the proposed
residential or nonresidential building contains detailed energy
system specifications and confirms that the building satisfies the
minimum standards established pursuant to subdivision (a) or (b) of
Section 25402 and this section applicable to the building.
(2) Where there is no local building department, the department
shall enforce subdivisions (a) and (b) of Section 25402 and this
section.
(3) If a local building department fails to enforce subdivisions
(a) and (b) of Section 25402 and this section or any other provision
of this chapter or standard adopted pursuant thereto, the department
may provide enforcement after furnishing 10 days' written notice to
the local building department.
(4) A city, county, or city and county may, by ordinance or
resolution, prescribe a schedule of fees sufficient to pay the costs
incurred in the enforcement of subdivisions (a) and (b) of Section
25402 and this section. The department may establish a schedule of
fees sufficient to pay the costs incurred by that enforcement.
(5) Construction of a state building shall not commence until the
Department of General Services or the state agency that otherwise
has jurisdiction over the property reviews the plans for the proposed
building and certifies that the plans satisfy the minimum standards
established pursuant to Chapter 2.8 (commencing with Section
15814.30) of Part 10b of Division 3 of Title 2 of the Government
Code, Section 25402, and this section which are applicable to the
building.
(h) Subdivisions (a) and (b) of Section 25402 and this
section shall apply only to new residential and nonresidential
buildings on which actual site preparation and construction have not
commenced prior to the effective date of rules and regulations
adopted pursuant to those sections that are applicable to those
buildings. Nothing in those sections shall prohibit either of the
following:
(1) The enforcement of state or local energy conservation or
energy insulation standards, adopted prior to the effective date of
rules and regulations adopted pursuant to subdivisions (a) and (b) of
Section 25402 and this section with regard to residential and
nonresidential buildings on which actual site preparation and
construction have commenced prior to that date.
(2) The enforcement of city or county energy conservation or
energy insulation standards, whenever adopted, with regard to
residential and nonresidential buildings on which actual site
preparation and construction have not commenced prior to the
effective date of rules and regulations adopted pursuant to
subdivisions (a) and (b) of Section 25402 and this section, if the
city or county files the basis of its determination that the
standards are cost effective with the department and the department
finds that the standards will require the diminution of energy
consumption levels permitted by the rules and regulations adopted
pursuant to those sections. If, after two or more years after the
filing with the department of the determination that those standards
are cost effective, there has been a substantial change in the
factual circumstances affecting the determination, upon application
by any interested party, the city or county shall update and file a
new basis of its determination that the standards are cost effective.
The determination that the standards are cost effective shall be
adopted by the governing body of the city or county at a public
meeting. If, at the meeting on the matter, the governing body
determines that the standards are no longer cost effective, the
standards shall, as of that date, be unenforceable and no building
permit or other entitlement shall be denied based on the
noncompliance with the standards.
(i) The department may exempt from the requirements of this
section and of any regulations adopted pursuant thereto any proposed
building for which compliance would be impossible without substantial
delays and increases in cost of construction, if the department
finds that substantial funds have been expended in good faith on
planning, designing, architecture, or engineering prior to the date
of adoption of the regulations.
(j) If a dispute arises between an applicant for a building
permit, or the state pursuant to paragraph (5) of subdivision (g),
and the building department regarding interpretation of Section 25402
or the regulations adopted pursuant thereto, either party may submit
the dispute to the board for resolution. The board's determination
of the matter shall be binding on the parties.
(k) Nothing in Section 25130, 25131, or 25402, or in this section
prevents enforcement of any regulation adopted pursuant to this
chapter, or Chapter 11.5 (commencing with Section 19878) of Part 3 of
Division 13 of the Health and Safety Code as they existed prior to
September 16, 1977.
SEC. 144. Section 25402.2 of the Public Resources Code is amended
to read:
25402.2. Any standard adopted by the board pursuant to Sections
25402 and 25402.1, which is a building standard as defined in Section
25488.5, shall be submitted to the State Building Standards
Commission for approval pursuant to, and is governed by, the State
Building Standards Law (Part 2.5 (commencing with Section 18901) of
Division 13 of the Health and Safety Code). Building standards
adopted by the board and published in the State Building Standards
Code shall be enforced as provided in Sections 25402 and 25402.1.
SEC. 145. Section 25402.3 of the Public Resources Code is amended
to read:
25402.3. For purposes of subdivision (e) of Section 25402.1, the
department shall contract with California building officials to
establish two regional training centers to provide continuing
education for local building officials and enforcement personnel as
follows:
(a) One site shall be located in northern California and one site
shall be located in southern California to serve the needs of the
respective regions.
(b) The centers shall provide training on a monthly basis to
ensure a uniform understanding and implementation of the
energy-efficient building standards. Existing resources shall be used
as much as possible by utilizing members of the building official
community in training activities.
(c) The centers shall provide similar training sessions, in the
form of workshops given in designated rural areas, to ensure that
adequate training is available throughout the state. The workshops
shall meet all of the following requirements:
(1) A minimum of two workshops in northern California and two
workshops in southern California shall be offered each year.
(2) The sites shall be selected to ensure the greatest number of
participants will be served in areas of greatest need to decrease the
financial burden on small rural or isolated local government
agencies that would not be able to travel to the regional training
centers for instruction.
SEC. 146. Section 25402.4 of the Public Resources Code is amended
to read:
25402.4. The standards for nonresidential buildings prescribed by
the board pursuant to subdivisions (a) and (b) of Section 25402
shall provide at least one option which uses passive or semipassive
thermal systems, as defined in Section 25600, for meeting the
prescribed energy use requirements. These systems may include, but
are not limited to, the following construction techniques:
(a) Use of skylights or other daylighting techniques.
(b) Use of openable windows or other means of using outside air
for space conditioning.
(c) Use of building orientation, to complement other passive or
semipassive thermal systems.
(d) Use of thermal mass, of structural or nonstructural type, for
storage of heat or cold, including, but not limited to, roof ponds
and water walls.
SEC. 147. Section 25402.5 of the Public Resources Code is amended
to read:
25402.5. (a) As used in this section, "lighting device" includes,
but is not limited to, a lamp, luminaire, light fixture, lighting
control, ballast, or any component of those devices.
(b) (1) The board shall consider both new and replacement, and
both interior and exterior, lighting devices as lighting which is
subject to subdivision (a) of Section 25402.
(2) The board shall include both indoor and outdoor lighting
devices as appliances to be considered in prescribing standards
pursuant to paragraph (1) of subdivision (c) of Section 25402.
(3) The Legislature hereby finds and declares that paragraphs (1)
and (2) are declarative of existing law.
(c) The board shall adopt efficiency standards for outdoor
lighting. The standards shall be technologically feasible and cost
effective. As used in this subdivision, "outdoor lighting" refers to
all electrical lighting that is not subject to standards adopted
pursuant to Section 25402, and includes, but is not limited to,
street lights, traffic lights, parking lot lighting, and billboard
lighting. The department and the board shall consult with the
Department of Transportation (CALTRANS) to ensure that outdoor
lighting standards that affect CALTRANS are compatible with that
department's policies and standards for safety and illumination
levels on state highways.
SEC. 148. Section 25402.5.4 of the Public Resources Code is
amended to read:
25402.5.4. (a) On or before December 31, 2008, the board shall
adopt minimum energy efficiency standards for all general purpose
lights on a schedule specified in the regulations. The regulations,
in combination with other programs and activities affecting lighting
use in the state, shall be structured to reduce average statewide
electrical energy consumption by not less than 50 percent from the
2007 levels for indoor residential lighting and by not less than 25
percent from the 2007 levels for indoor commercial and outdoor
lighting, by 2018.
(b) The board shall make recommendations to the Governor and the
Legislature regarding how to continue reductions in electrical
consumption for lighting beyond 2018.
(c) The board may establish programs to encourage the sale in this
state of general purpose lights that meet or exceed the standards
set forth in subdivision (a).
(d) (1) Except as provided in paragraph (2), the Department of
General Services, and all other state agencies, as defined in Section
12200 of the Public Contract Code, in coordination with the
department, shall cease purchasing general purpose lights that do not
meet the standards adopted pursuant to subdivision (a), within two
years of those standards being adopted.
(2) The Department of General Services, and all other state
agencies, as defined in Section 12200 of the Public Contract Code, in
coordination with the department shall cease purchasing general
purpose lights with an appearance that is historically appropriate
for the facilities in which the lights are being used, and that do
not meet the standards adopted pursuant to subdivision (a) within
four years of those standards being adopted.
(e) It is the intent of the Legislature to encourage the Regents
of the University of California, in coordination with the department,
to cease purchasing general purpose lights that do not meet the
standards adopted pursuant to subdivision (a), within two years of
those standards being adopted.
(f) (1) (A) For purposes of this section, "general purpose lights"
means lamps, bulbs, tubes, or other electric devices that provide
functional illumination for indoor residential, indoor commercial,
and outdoor use.
(B) General purpose lights do not include any of the following
types of specialty lighting: appliance, black light, bug, colored,
infrared, left-hand thread, marine, marine signal service, mine
service, plant light, reflector, rough service, shatter resistant,
sign service, silver bowl, showcase, three-way, traffic signal, and
vibration service or vibration resistant.
(2) The board may, after one or more public workshops, with public
notice and an opportunity for all interested parties to comment,
provide for inclusion of a particular type of specialty light in its
energy efficiency standards applicable to general purpose lighting,
if it finds that there has been a significant increase in sales of
that particular type of particular specialty light due to the use of
that specialty light in general purpose lighting applications.
(3) General purpose lights do not include lights needed to provide
special-needs lighting for individuals with exceptional needs.
SEC. 149. Section 25402.6 of the Public Resources Code is amended
to read:
25402.6. The department shall investigate options and develop a
plan to decrease wasteful peakload energy consumption in existing
residential and nonresidential buildings. On or before January 1,
2004, the department shall report its findings to the Legislature,
including, but not limited to, any changes in law necessary to
implement the plan to decrease wasteful peakload energy consumption
in existing residential and nonresidential buildings.
SEC. 150. Section 25402.7 of the Public Resources Code is amended
to read:
25402.7. (a) In consultation with the department, electric and
gas utilities shall provide support for building standards and other
regulations pursuant to Section 25402 and subdivision (b) of Section
25553 including appropriate research, development, and training to
implement those standards and other regulations.
(b) The electric and gas utilities shall provide support pursuant
to subdivision (a) only to the extent that funds are made available
to the utilities for that purpose.
SEC. 151. Section 25402.8 of the Public Resources Code is amended
to read:
25402.8. When assessing new building standards for residential
and nonresidential buildings relating to the conservation of energy,
the board shall include in its deliberations the impact that those
standards would have on indoor air pollution problems.
SEC. 152. Section 25402.9 of the Public Resources Code is amended
to read:
25402.9. (a) On or before July 1, 1996, the department shall
develop, and by action of the board, publish an informational booklet
to educate and inform homeowners, rental property owners, renters,
sellers, brokers, and the general public about the statewide home
energy rating program adopted pursuant to Section 25942.
(b) In the development of the booklet, the department shall
consult with representatives of the Department of Real Estate, the
Department of Housing and Community Development, the Public Utilities
Commission, investor-owned and municipal utilities, cities and
counties, real estate licensees, home builders, mortgage lenders,
home appraisers and inspectors, home energy rating organizations,
contractors who provide home energy services, consumer groups, and
environmental groups.
(c) The department shall charge a fee for the informational
booklet to recover its costs under subdivision (a).
SEC. 153. Section 25403 of the Public Resources Code is amended to
read:
25403. The department shall submit to the Public Utilities
Commission and to any publicly owned electric utility,
recommendations designed to reduce wasteful, unnecessary, or
uneconomic energy consumption resulting from practices, including,
but not limited to, differential rate structures, cost-of-service
allocations, the disallowance of a business expense of advertising or
promotional activities that encourage the use of electrical power,
peakload pricing, and other pricing measures. The Public Utilities
Commission or publicly owned electric utility shall review and
consider the recommendations and shall, within six months after the
date it receives them, as prescribed by this section, report to the
Governor and the Legislature its actions and reasons therefor with
respect to the recommendations.
SEC. 154. Section 25403.5 of the Public Resources Code is amended
to read:
25403.5. (a) The board shall, by July 1, 1978, adopt standards by
regulation for a program of electrical load management for each
utility service area. In adopting the standards, the board shall
consider, but need not be limited to, the following load management
techniques:
(1) Adjustments in rate structure to encourage use of electrical
energy at off-peak hours or to encourage control of daily electrical
load. Compliance with those adjustments in rate structure shall be
subject to the approval of the Public Utilities Commission in a
proceeding to change rates or service.
(2) End use storage systems which store energy during off-peak
periods for use during peak periods.
(3) Mechanical and automatic devices and systems for the control
of daily and seasonal peakloads.
(b) The standards shall be cost effective when compared with the
costs for new electrical capacity, and the board shall find them to
be technologically feasible. Any expense or any capital investment
required of a utility by the standards shall be an allowable expense
or an allowable item in the utility rate base and shall be treated by
the Public Utilities Commission as allowable in a rate proceeding.
The board may determine that one or more of the load management
techniques are infeasible and may delay their adoption. If the board
determines that any techniques are infeasible to implement, it shall
make a finding in each instance stating the grounds upon which the
determination was made and the actions it intends to take to remove
the impediments to implementation.
(c) The board may also grant, upon application by a utility, an
exemption from the standards or a delay in implementation. The grant
of an exemption or delay shall be accompanied by a statement of
findings by the board indicating the grounds for the exemption or
delay. Exemption or delay shall be granted only upon a showing of
extreme hardship, technological infeasibility, lack of cost
effectiveness, or reduced system reliability and efficiency.
(d) This section does not apply to proposed sites and related
facilities for which a notice of intent or an application requesting
certification has been filed with the board prior to the effective
date of the standards.
SEC. 155. Section 25403.8 of the Public Resources Code is amended
to read:
25403.8. (a) The department shall develop and implement a program
to provide battery backup power for those official traffic control
signals, operated by a city, county, or city and county, that the
department, in consultation with cities, counties, or cities and
counties, determines to be high priority traffic control signals.
(b) Based on traffic factors considered by cities, counties, or
cities and counties, including, but not limited to, traffic volume,
number of accidents, and presence of children, the department shall
determine a priority schedule for the installation of battery backup
power for traffic control systems. The department shall give priority
to a city, county, or city and county that did not receive a grant
from the State of California for the installation of light-emitting
diode traffic control signals.
(c) The department shall also develop or adopt the necessary
technical criteria as to wiring, circuitry, and recharging units for
traffic control signals. Only light-emitting diodes (LED) traffic
control signals are eligible for battery backup power for the full
operation of the traffic control signal or a flashing red mode. A
city, county, or city and county may apply for a matching grant for
battery backup power for traffic control signals retrofitted with
light-emitting diodes.
(d) Based on the criteria described in subdivision (c), the board
shall provide matching grants to cities, counties, and cities and
counties for backup battery systems described in this section in
accordance with the priority schedule established by the department
pursuant to subdivision (b). The board shall provide 70 percent of
the funds for a battery backup system, and the city, county, or city
and county shall provide 30 percent.
(e) If a city, county, or city and county has installed a backup
battery system for LED traffic control signals between January 1,
2001, and October 1, 2001, the board may reimburse the city, county,
or city and county for up to 30 percent of the cost incurred for the
backup battery system installation. However, the board may not spend
more than one million five hundred thousand dollars ($1,500,000) for
reimbursements pursuant to this subdivision.
SEC. 156. Section 25404 of the Public Resources Code is amended to
read:
25404. The department shall cooperate with the Natural Resources
Agency and other interested parties in developing procedures to
ensure that mitigation measures to minimize wasteful, inefficient,
and unnecessary consumption of energy are included in all
environmental impact reports required on local projects as specified
in Section 21151.
SEC. 157. Section 25405.5 of the Public Resources Code is amended
to read:
25405.5. (a) As used in this section, the following terms have
the following meanings:
(1) "kW" means kilowatts or 1,000 watts, as measured from the
alternating current side of the solar energy system inverter
consistent with Section 223 of Title 15 of the United States Code.
(2) "Production home" means a single-family residence constructed
as part of a development of at least 50 homes per project that is
intended or offered for sale.
(3) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kW, and not more than five megawatts, alternating current
rated peak electricity, and that meets or exceeds the eligibility
criteria established pursuant to Section 25782.
(b) A seller of production homes shall offer a solar energy system
option to all customers that enter into negotiations to purchase a
new production home constructed on land for which an application for
a tentative subdivision map has been deemed complete on or after
January 1, 2011, and disclose the following:
(1) The total installed cost of the solar energy system option.
(2) The estimated cost savings associated with the solar energy
system option, as determined by the board pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15.
(c) The Department of Energy shall develop an offset program that
allows a developer or seller of production homes to forgo the offer
requirement of this section on a project, by installing solar energy
systems generating specified amounts of electricity on other
projects, including, but not limited to, low-income housing,
multifamily, commercial, industrial, and institutional developments.
The amount of electricity required to be generated from solar energy
systems used as an offset pursuant to this subdivision shall be equal
to the amount of electricity generated by solar energy systems
installed on a similarly sized project within that climate zone,
assuming 20 percent of the prospective buyers would have installed
solar energy systems.
(d) The requirements of this section shall not operate as a
substitute for the implementation of existing energy efficiency
measures, and the requirements of this section shall not result in
lower energy savings or lower energy efficiency levels than would
otherwise be achieved by the full implementation of energy savings
and energy efficiency standards established pursuant to Section
25402.
SEC. 158. Section 25405.6 of the Public Resources Code is amended
to read:
25405.6. Not later than July 1, 2007, the department and the
board shall initiate a public proceeding to study and make findings
whether, and under what conditions, solar energy systems should be
required on new residential and new nonresidential buildings,
including the establishment of numerical targets. As part of the
study, the board may determine that a solar energy system should not
be required for any building unless the board determines, based upon
consideration of all costs associated with the system, that the
system is cost effective when amortized over the economic life of the
structure. When determining the cost-effectiveness of the solar
energy system, the board shall consider the availability of
governmental rebates, tax deductions, net metering, and other
quantifiable factors, if the board can determine the availability of
these financial incentives if a solar energy system is made mandatory
and not elective. The department shall periodically update the study
and incorporate any revision that the department and the board
determines is necessary, including revisions that reflect changes in
the financial incentives originally considered by the board when
determining cost-effectiveness of the solar energy system. For
purposes of this section, "solar energy system" means a photovoltaic
solar collector or other photovoltaic solar energy device that has a
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity. This section is
intended to be for study purposes only and does not authorize the
board to develop and adopt any requirement for solar energy systems
on either residential or nonresidential buildings.
SEC. 159. Section 25410.5 of the Public Resources Code is amended
to read:
25410.5. The Legislature finds and declares all of the following:
(a) Energy costs are frequently the second largest discretionary
expense in a local government's budget. According to the department,
most public institutions could reduce their energy costs by 20 to 30
percent.
(b) A variety of energy conservation measures are available to
local governments. These measures are highly cost effective, often
providing a payback on the initial investment in three years or less.
(c) Many local governments lack energy management expertise and
are often unaware of their high energy costs or the opportunities to
reduce those costs.
(d) Local governments that desire to reduce their energy costs
through energy conservation and efficiency measures often lack
available funding.
(e) Since 1980, the Energy Conservation Assistance Account has
provided $110 million in loans, through a revolving loan account, to
600 schools, hospitals, and local governments. The energy
conservation projects funded by the account save approximately $35
million annually in energy costs.
(f) Local governments and public institutions need assistance in
all aspects of energy efficiency improvements, including, but not
limited to, project identification, project development and
implementation, evaluation of project proposals and options,
operations and maintenance, and troubleshooting of problem projects.
SEC. 160. Section 25410.6 of the Public Resources Code is amended
to read:
25410.6. (a) It is the intent of the Legislature that the
department shall administer the State Energy Conservation Assistance
Account to provide grants and loans to local governments and public
institutions to maximize energy use savings, including, but not
limited to, technical assistance, demonstrations, and identification
and implementation of cost-effective energy efficiency measures and
programs in existing and planned buildings or facilities.
(b) It is further the intent of the Legislature that the
department seek the assistance of utility companies in providing
energy audits for local governments and public institutions and in
publicizing the availability of State Energy Conservation Assistance
Account funds to qualified entities.
SEC. 161. Section 25412 of the Public Resources Code is amended to
read:
25412. Any eligible institution may submit an application to the
department for an allocation for the purpose of financing all or a
portion of the costs incurred in implementing a project. The
application shall be in the form and contain the information incurred
in implementing a project that the department shall prescribe.
An application may be for the purpose of financing the eligible
institution's share of the costs that are to be jointly funded
through a state, local, or federal-local program.
SEC. 162. Section 25413 of the Public Resources Code is amended to
read:
25413. Applications may be approved by the department only in
those instances where the eligible institution has furnished
information
satisfactory to the department that the costs of the project, plus
interest on state funds loaned, calculated in accordance with Section
25415, will be recovered through savings in the cost of energy to
the institution during the repayment period of the allocation.
The savings shall be calculated in a manner prescribed by the
department.
SEC. 163. Section 25414 of the Public Resources Code is amended to
read:
25414. Annually at the conclusion of each fiscal year, but not
later than October 31, each eligible institution that has received an
allocation pursuant to this chapter shall compute the cost of energy
saved as a result of implementing a project funded by the
allocation. The cost shall be calculated in a manner prescribed by
the department.
SEC. 164. Section 25415 of the Public Resources Code is amended to
read:
25415. (a) Each eligible institution to which an allocation has
been made under this chapter shall repay the principal amount of the
allocation, plus interest, in not more than 30 equal semiannual
payments, as determined by the department. The first semiannual
payment shall be made on or before December 22 of the fiscal year
following the year in which the project is completed. The repayment
period may not exceed the life of the equipment, as determined by the
department or the lease term of the building in which the energy
conservation measures will be installed.
(b) Notwithstanding any other provision of law, the department
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not less than 1
percent per annum.
(c) The governing body of each eligible institution shall annually
budget an amount at least sufficient to make the semiannual payments
required in this section. The amount shall not be raised by the levy
of additional taxes but shall instead be obtained by a savings in
energy costs or other sources.
SEC. 165. Section 25416 of the Public Resources Code is amended to
read:
25416. (a) The State Energy Conservation Assistance Account is
hereby created in the General Fund. Notwithstanding Section 13340 of
the Government Code, the account is continuously appropriated to the
department without regard to fiscal year.
(b) The money in the account shall consist of all money authorized
or required to be deposited in the account by the Legislature and
all money received by the department pursuant to Sections 25414 and
25415.
(c) The money in the account shall be disbursed by the Controller
for the purposes of this chapter as authorized by the department.
(d) The department may contract and provide grants for services to
be performed for eligible institutions. Services may include, but
are not limited to, feasibility analysis, project design, field
assistance, and operation and training. The amount expended for those
services may not exceed 10 percent of the unencumbered balance of
the account as determined by the department on July 1 of each year.
(e) The department may make grants to eligible institutions for
innovative projects and programs. Except as provided in subdivision
(d), the amount expended for grants may not exceed 5 percent of the
annual unencumbered balance in the account as determined by the
department on July 1 of each fiscal year.
(f) The department may charge a fee for the services provided
under subdivision (d).
(g) Notwithstanding any other provision of law, the Controller may
use the State Energy Conservation Assistance Account for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code.
SEC. 166. Section 25417 of the Public Resources Code is amended to
read:
25417. (a) An allocation made pursuant to this chapter shall be
used for the purposes specified in an approved application.
(b) In the event that the department determines that an allocation
has been expended for purposes other than those specified in an
approved application, it shall immediately request the return of the
full amount of the allocation. The eligible institution shall
immediately comply with this request.
SEC. 167. Section 25417.5 of the Public Resources Code is amended
to read:
25417.5. (a) In furtherance of the purposes of the department as
set forth in this chapter, the department has the power and authority
to do all of the following:
(1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority and the California Infrastructure and Economic
Development Bank from the proceeds of revenue bonds issued by any of
those agencies.
(2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.4 (commencing with Section 25440).
(3) Sell loans made pursuant to this chapter or Chapter 5.4
(commencing with Section 25440), at prices determined in the sole
discretion of the department, to the California Economic Development
Financing Authority and the California Infrastructure and Economic
Development Bank to raise funds to enable the department to make
loans to eligible institutions.
(4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the department as
conditions of issuing bonds to fund loans to, or the purchase of
loans from, the department.
(b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the department may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
department is pledging loans or the principal and interest payment on
loans, and may also agree to have the loans held by bond trustees or
by independent collateral or escrow agents and to direct that
payments received on those loans be paid to those trustee,
collateral, or escrow agents.
(c) The department may employ financial consultants, legal
advisers, accountants, and other service providers, as may be
necessary in its judgment, in connection with activities pursuant to
this chapter.
(d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.4 (commencing with Section 25440), and
is supplemental and additional to powers conferred by other laws.
SEC. 168. Section 25419 of the Public Resources Code is amended to
read:
25419. In addition to the powers specifically granted to the
department by the other provisions of this chapter, the department
shall have the following powers:
(a) To establish qualifications and priorities, consistent with
the objectives of this chapter, for making allocations.
(b) To establish procedures and policies as may be necessary for
the administration of this chapter.
SEC. 169. Section 25420 of the Public Resources Code is amended to
read:
25420. The department may expend from the State Energy
Conservation Assistance Account an amount to pay for the actual
administrative costs incurred by the department pursuant to this
chapter. The amount shall not exceed 5 percent of the annual
unencumbered balance in the account as determined by the department
on July 1 of each fiscal year, to be used to defray costs incurred by
the department for allocations made by the department pursuant to
this chapter.
SEC. 170. Section 25422 of the Public Resources Code is amended to
read:
25422. (a) Federal funds available to the department pursuant to
Chapter 5.6 (commencing with Section 25460) may be used by the
department to augment funding for grants and loans pursuant to this
chapter. Any federal funds used for loans shall, when repaid, be
deposited into the Energy Conservation Assistance Account and used to
make additional loans pursuant to this chapter.
(b) A separate subaccount shall be established within the Energy
Conservation Assistance Account to track the award and repayment of
loans from federal funds, including any interest earnings, in
accordance with the federal American Recovery and Reinvestment Act of
2009 (Public Law 111-5).
SEC. 171. Section 25426 of the Public Resources Code is amended to
read:
25426. As used in this article, the following terms have the
following meanings:
(a) "Commercial refrigeration" means a refrigerator that is not a
federally regulated consumer product.
(b) "Energy-efficient model" means any appliance that meets the
efficiency standards of the United States Department of Energy that
are effective on and after July 1, 2001, and, if applicable, products
certified as energy-efficient zone heating products by the board.
(c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
SEC. 172. Section 25433 of the Public Resources Code is amended to
read:
25433. It is the intent of the Legislature to establish
incentives in the form of grants and loans to low-income residents,
small businesses, and residential property owners for constructing
and retrofitting buildings to be more energy efficient by using
design elements, including, but not limited to, energy-efficient
siding, insulation, products certified as energy efficient zone
heating products by the board within the department, and double-paned
windows.
SEC. 173. Section 25433.5 of the Public Resources Code is amended
to read:
25433.5. (a) The department, in consultation with the Public
Utilities Commission, shall do both of the following for the purpose
of full or partial funding of an eligible construction or retrofit
project:
(1) Establish a grant program to provide financial assistance to
eligible low-income individuals.
(2) Establish a 2-percent interest per annum loan program to
provide financial assistance to a small business owner, residential
property owner, or individual who is not eligible for a grant
pursuant to paragraph (1). The loans shall be available to a small
business owner who has a gross annual income that does not exceed one
hundred thousand dollars ($100,000) or to an individual or
residential property owner who has a gross annual household income
that does not exceed one hundred thousand dollars ($100,000).
(b) (1) The department shall use the design guidelines adopted
pursuant to paragraph (2) of subdivision (f) of Section 14 of Chapter
8 of the Statutes of the First Extraordinary Session of 2001 as
standards to determine eligible energy-efficiency projects.
(2) The award of a grant pursuant to this section is subject to
appeal to the department upon a showing that the department applied
factors, other than those adopted by the department, in making the
award.
(3) The grant or loan recipient shall commit to using the grant or
loan for the purpose for which the grant or loan was awarded.
(4) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including satisfying
conditions specified by the department, does not constitute the
rendering of goods, services, or a direct benefit to the department.
(5) The amount of any grant awarded pursuant to this article to a
low-income individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received.
SEC. 174. Section 25434 of the Public Resources Code is amended to
read:
25434. The department may contract with one or more business
entities capable of supplying or providing goods or services
necessary for the department to carry out the responsibilities for
the programs conducted pursuant to this article, and shall contract
with one or more business entities to evaluate the effectiveness of
the programs implemented pursuant to subdivision (a) of Section
25433.5. The department may select an entity on a sole source basis
for one or both of those purposes if the cost to the state will be
reasonable and the department determines that it is in the best
interest of the state.
SEC. 175. Section 25434.5 of the Public Resources Code is amended
to read:
25434.5. As used in this article, the following terms have the
following meanings:
(a) "Eligible construction or retrofit project" means a project
for making improvements to a home or building in existence on April
12, 2001, through an addition, alteration, or repair, which
effectively increases the energy efficiency or reduces the energy
consumption of the home or building as specified by the departmental
guidelines under paragraph (2) of subdivision (f) of Section 14 of
Chapter 8 of the Statutes of the First Extraordinary Session of 2001.
The improvements shall be deemed to be cost-effective.
(b) "Low income" means an individual with a gross annual income
equal to or less than 200 percent of the federal poverty level.
(c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
SEC. 176. Article 3 (commencing with Section 25435) of Chapter 5.3
of Division 15 of the Public Resources Code is repealed.
SEC. 177. Section 25441 of the Public Resources Code is amended to
read:
25441. The department shall provide financial assistance to local
jurisdictions for the purpose of providing staff training and
support services, including, but not limited to, planning design,
permitting, energy conservation, comprehensive energy management,
project evaluation, and development of alternative energy resources.
SEC. 178. Section 25442 of the Public Resources Code is amended to
read:
25442. The department shall provide loans to local jurisdictions
for all of the following purposes:
(a) Purchase, maintenance, and evaluation of energy-efficient peak
load reduction equipment for existing or planned facilities,
including, but not limited to, equipment related to lights, motors,
pumps, water and wastewater systems, boilers, heating, and air
conditioning.
(b) Purchase, maintenance, and evaluation of small power
production systems, including, but not limited to, wind,
cogeneration, photovoltaics, geothermal, and hydroelectric systems.
(c) Improvement of the operating efficiency of existing local
transportation systems.
SEC. 179. Section 25442.5 of the Public Resources Code is amended
to read:
25442.5. The department may award financial assistance for
project audits, feasibility studies, engineering and design, and
legal and financial analysis related to the purposes of Section
25442.
SEC. 180. Section 25442.7 of the Public Resources Code is amended
to read:
25442.7. (a) Loans under this article may not exceed five million
dollars ($5,000,000) for any one local jurisdiction unless the
department determines that the public interest and objectives of this
chapter would be better served at a higher loan amount.
(b) Loan repayments shall be made in accordance with a schedule
established by the department. Repayment of loans shall be made in
full unless the department determines that the public interest and
objectives of this chapter would be better served by negotiating a
reduced loan repayment for a project that fails to meet the technical
or financial performance criteria through no fault of the local
jurisdiction.
SEC. 181. Section 25443 of the Public Resources Code is amended to
read:
25443. (a) Principal and interest payments on loans under this
article shall be returned to the department and shall be used to make
additional loans to local jurisdictions pursuant to Section 25442 or
to provide financial assistance to local jurisdictions pursuant to
Section 25441.
(b) Notwithstanding any other provision of law, the department
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not less than 3
percent per annum.
SEC. 182. Section 25443.5 of the Public Resources Code is amended
to read:
25443.5. (a) In furtherance of the purposes of the department as
set forth in this chapter, the department has the power and authority
to do all of the following:
(1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority and the California Infrastructure and Economic
Development Bank from the proceeds of revenue bonds issued by either
of those agencies.
(2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410).
(3) Sell loans made pursuant to this chapter or Chapter 5.2
(commencing with Section 25410), at prices determined in the sole
discretion of the department, to the California Economic Development
Financing Authority and the California Infrastructure and Economic
Development Bank to raise funds to enable the department to make
loans to eligible institutions.
(4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the department as
conditions of issuing bonds to fund loans to, or the purchase of
loans from, the department.
(b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the department may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
department is pledging loans or the principal and interest payment on
loans, and may also agree to have the loans held by bond trustees or
by independent collateral or escrow agents and to direct that
payments received on those loans be paid to those trustee,
collateral, or escrow agents.
(c) The department may employ financial consultants, legal
advisers, accountants, and other service providers, as may be
necessary in its judgment, in connection with activities pursuant to
this chapter.
(d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.2 (commencing with Section 25410), and
is supplemental and additional to powers conferred by other laws.
SEC. 183. Section 25445 of the Public Resources Code is amended to
read:
25445. The department shall design a local jurisdiction energy
assistance program for the purpose of providing financial assistance
under Article 2 (commencing with Section 25441) and providing loans
under Article 3 (commencing with Section 25442). A local jurisdiction'
s energy assistance program shall be funded through the department's
existing local government assistance programs, except that if a
project is not eligible for funding under an existing program, the
department may fund the project under this chapter.
SEC. 184. Section 25449 of the Public Resources Code is amended to
read:
25449. (a) The department shall enter into an agreement with the
Regents of the University of California, the Trustees of the
California State University, and the Board of Governors of the
California Community Colleges for the expenditure of petroleum
violation escrow funds to supplement, and not supplant, other
available funds to improve energy efficiency at state-supported
universities and colleges under their respective jurisdictions by
funding projects involving any of the following:
(1) Data collection.
(2) Establishment of operations and maintenance standards.
(3) Staff training.
(4) Ongoing energy equipment maintenance.
(5) Projects involving heating, ventilation, air conditioning,
and lighting equipment.
(b) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
SEC. 185. Section 25449.1 of the Public Resources Code is amended
to read:
25449.1. The department shall enter into an agreement with the
State Department of Education to expend petroleum violation escrow
funds to supplement, and not supplant, other available funds in order
to provide loans to school districts to purchase, maintain, and
evaluate energy-efficient equipment and small power production
systems.
SEC. 186. Section 25449.2 of the Public Resources Code is amended
to read:
25449.2. Not later than three years after the imposition of any
fees pursuant to this chapter, the department shall report to the
Legislature in the biennial energy conservation report required by
Section 25401.1, on the effect of those fees on alternative public
and private financing for public sector programs.
SEC. 187. Section 25449.3 of the Public Resources Code is amended
to read:
25449.3. (a) The Local Jurisdiction Energy Assistance Account is
hereby created in the General Fund. All money appropriated for
purposes of this chapter and all money received from local
jurisdictions from loan repayments shall be deposited in the account
and disbursed by the Controller as authorized by the department.
(b) The department may charge a fee for the services provided
under this chapter.
(c) The department may contract for services to be performed by
eligible institutions, as defined in subdivision (c) of Section
25411. Those services may include, but are not limited to,
performance of a feasibility analysis, and providing project design,
field evaluation, and operation and training assistance. The amount
expended for contract services may not exceed 10 percent of the
annual scheduled loan repayment to the Local Jurisdiction Energy
Assistance Account, as determined by the department not later than
July 1 of each fiscal year.
SEC. 188. Section 25449.4 of the Public Resources Code is amended
to read:
25449.4. (a) Except as provided in subdivision (b), this chapter
shall remain in effect until January 1, 2011, and as of that date is
repealed, unless a later enacted statute which is enacted before
January 1, 2011, deletes or extends that date.
(b) All loans outstanding as of January 1, 2011, shall continue to
be repaid in accordance with a schedule established by the
department pursuant to Section 25442.7, until paid in full. All
unexpended funds in the Local Jurisdiction Energy Assistance Account
on January 1, 2011, and thereafter, except to the extent that those
funds are encumbered pursuant to Section 25443.5, shall be deposited
in the Federal Trust Fund and be available for the purposes for which
federal oil overcharge funds are available pursuant to court
judgment or federal agency order.
SEC. 189. 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) The 110th Congress enacted the Energy Independence and
Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) that provides
energy efficiency and conservation block grants to eligible entities,
including states, to reduce fossil fuel emissions, improve energy
efficiency, and reduce overall energy use.
(3) 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.
(4) 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 implement the
requirements for, and achieve the purposes of, the energy and
conservation block grants provided pursuant to the Energy
Independence and Security Act of 2007 and the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), in the most expedient
manner possible, and that the funds allocated to the state pursuant
to those acts be administered by the department. Moreover, to the
extent possible without causing undue delay, the department 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 department should use the allowable administrative expenses
specified in Section 545(c)(4) of the Energy Independence and
Security Act of 2007 (42 U.S.C. Sec. 17155(c)(4)) as a ceiling and
improve efficiencies to allocate less than the allowable amount.
SEC. 190. Section 25450.1 of the Public Resources Code is amended
to read:
25450.1. The department, by action of the board, shall
administer the 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.) and the American Recovery and Reinvestment Act of 2009
(Public Law 111-5) for the Energy Efficiency and Conservation Block
Grant Program established pursuant to Section 542 of the Energy
Independence and Security Act of 2007 (42 U.S.C. Sec. 17152), and may
use the federal funds to award contracts, grants, and loans as
expeditiously as possible consistent with those acts.
SEC. 191. Section 25450.3 of the Public Resources Code is amended
to read:
25450.3. The department shall not exceed the amount specified in
Section 545(c)(4) of the Energy Independence and Security Act of 2007
(42 U.S.C. Sec. 17155(c)(4)) for administrative expenses, which
include, but are not limited to, reporting, recordkeeping, and
evaluation activities required by the Energy Independence and
Security Act of 2007 (42 U.S.C. Section 17001 et seq.), the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5), and
implementing regulations and guidelines, that govern or fund the
Energy Efficiency and Conservation Block Grant Program, and the
combined administration program costs, indirect costs, overhead, and
costs associated with the Statewide Cost Allocation Plan.
SEC. 192. Section 25450.4 of the Public Resources Code is amended
to read:
25450.4. The department, by action of the board, may award
contracts, grants, and loans pursuant to this chapter, unless
otherwise prohibited by the Energy Independence and Security Act of
2007 (42 U.S.C. Sec. 17001 et seq.), the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), implementing regulations
and guidelines.
SEC. 193. Section 25450.5 of the Public Resources Code is amended
to read:
25450.5. (a) The department, by action of the board, may adopt
guidelines governing the award, eligibility, and administration of
funding pursuant to the American Recovery and Reinvestment Act of
2009 (Public Law 111-5) at a publicly noticed meeting offering all
interested parties an opportunity to comment. The board shall provide
written public notice of not less than 30 days for the initial
adoption of guidelines. Substantive changes to the guidelines shall
not be adopted without 15-day written notice to the public.
Notwithstanding any other provision of law, any guidelines adopted
pursuant to this chapter shall be exempt from the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
(b) Grants and loans made pursuant to this chapter are subject to
appeal to the board upon a showing that factors other than those
described in the guidelines adopted by the board were applied in
making the awards and payments.
SEC. 194. Section 25460 of the Public Resources Code is amended to
read:
25460. (a) The Legislature finds and declares that the 111th
Congress enacted the American Recovery and Reinvestment Act of 2009
(Public Law 111-5) that appropriates funds for various energy
programs administered by the department.
(b) It is the intent of the Legislature that the department, by
action of the board, should have the authority to award contracts,
grants, and loans from funds received pursuant to the American
Recovery and Reinvestment Act of 2009 and to make the awards as
expeditiously as possible.
SEC. 195. Section 25461 of the Public Resources Code is amended to
read:
25461. (a) Except as provided in Chapter 5.5 (commencing with
Section 25450), the department shall administer federal funds
allocated to, and received by, the state for energy-related projects
pursuant to the American Recovery and Reinvestment Act of 2009
(Public Law 111-5) or federal acts related to the American Recovery
and Reinvestment Act of 2009.
(b) Unless otherwise prohibited by the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) or subsequent federal
acts related to the American Recovery and Reinvestment Act of 2009,
the department, by action of the board, may use the federal funds to
award contracts, grants, and loans for energy efficiency, energy
conservation, renewable energy, and other energy-related projects and
activities authorized by the American Recovery and Reinvestment Act
of 2009 or subsequent federal acts related to the American Recovery
and Reinvestment Act of 2009.
SEC. 196. Section 25462 of the Public Resources Code is amended to
read:
25462. (a) The department, by action of the board, may adopt
guidelines governing the award, eligibility, and administration of
funding pursuant to this chapter at a publicly noticed meeting
offering all interested parties an opportunity to comment. The board
shall provide written public notice of not less than 30 days for the
initial adoption of guidelines. Substantive changes to the guidelines
shall not be adopted without 15-day written notice to the public.
Notwithstanding any other provision of law, any guidelines adopted
pursuant to this chapter shall be exempt from the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
(b) Grants and loans made pursuant to this chapter are subject to
appeal to the board upon a showing that factors other than those
described in the guidelines adopted by the board were applied in
making the awards and payments.
SEC. 197. Section 25463 of the Public Resources Code is amended to
read:
25463. (a) Notwithstanding any other provision of this division,
federal funds available to the department pursuant to this chapter
may be used by the department, by action of the board, to augment
funding for any programs or measures authorized by this division
unless otherwise prohibited by the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5). The department may administer any
funds used to augment other programs using the procedures of the
augmented program consistent with applicable federal law.
(b) This section shall be liberally construed to maximize the
department's and the board's ability to utilize and award federal
funds expeditiously and in accordance with the American Recovery and
Reinvestment Act of 2009 or federal acts related to the American
Recovery and Reinvestment Act of 2009.
SEC. 198. Section 25470 of the Public Resources Code is amended to
read:
25470. As used in this chapter:
(a) "Act" means the federal American Recovery and Reinvestment Act
of 2009 (Public Law 111-5).
(b) "Allocation" means a loan of funds by the Department of
General Services pursuant to the procedures specified in this
chapter.
(c) "Building" means any existing structure that includes a
heating or cooling system, or both. Additions to an existing building
shall be considered part of that building rather than a separate
building.
(d) "Energy audit" means a determination of the energy
consumption characteristics of a building that does all of the
following:
(1) Identifies the type, size, and energy use level of the
building and the major energy using systems of the building.
(2) Determines appropriate energy conservation maintenance and
operating procedures.
(3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures.
(e) "Energy conservation maintenance and operating procedure"
means a modification or modifications in the maintenance and
operations of a building, and any installations therein, based on the
use time schedule of the building that are designed to reduce energy
consumption in the building and that require no significant
expenditure of funds.
(f) "Energy conservation measure" means an installation or
modification of an installation in a building that is primarily
intended to reduce energy consumption or allow the use of a more
cost-effective energy source.
(g) "Energy conservation project" means an undertaking to acquire
and to install one or more energy conservation measures in a
building, and technical assistance in connection with that
undertaking.
(h) "Fund" means the Energy Efficient State Property Revolving
Fund.
(i) "Project" means a purpose for which an allocation may be
requested and made under this chapter. Those purposes shall include
energy audits, energy conservation and operating procedures, and
energy conservation measures in existing buildings, and energy
conservation projects.
(j) "State agency" means a unit of state government, including
any department, agency, board, or commission under the State of
California.
(k) "State-owned building" means a building that is primarily
occupied by offices or agencies of a unit of state government and
includes those properties owned by the State of California.
SEC. 199. Section 25471 of the Public Resources Code is amended to
read:
25471. (a) There is hereby created in the State Treasury the
Energy Efficient State Property Revolving Fund for the purpose of
implementing this chapter. Notwithstanding Section 13340 of the
Government Code, the money in this fund is continuously appropriated
to the Department of General Services, without regard to fiscal
years, for loans for projects on state-owned buildings and facilities
to achieve greater, long-term energy efficiency, energy
conservation, and energy cost and use avoidance.
(b) The fund shall be administered by the Department of General
Services. The Department of General Services may use other funding
sources to leverage project loans.
(c) For the 2009-10 fiscal year, the sum of twenty-five million
dollars ($25,000,000) shall be transferred into the Energy Efficient
State Property Revolving Fund from money received by the department
pursuant to the act to be used for purposes of the federal State
Energy Program.
(d) The Controller shall disburse moneys in the fund for the
purposes of this chapter, as authorized by the Department of General
Services.
(e) Moneys in the fund, including all interest earnings, shall be
clearly delineated and distinctly accounted for in accordance with
the requirements of the act.
SEC. 200. Section 25472 of the Public Resources Code is amended to
read:
25472. (a) The Department of General Services, in consultation
with the department, shall establish a process by which projects are
identified and funding is allocated.
(b) Beginning July 1, 2009, the Department of General Services
shall use money in the fund for projects that will improve long-term
energy efficiency and increase energy use savings.
(c) The Department of General Services shall comply with the
requirements of the act and implementing guidelines of the
department, including, but not limited to, performance metrics, data
collection, and reporting. All projects must be consistent with these
requirements and guidelines.
(d) Funding prioritization shall be granted to those projects that
are cost-effective and will yield immediate and sustainable energy
efficiency, energy conservation, energy use cost savings, and cost
avoidance.
(e) The Department of General Services shall fund allowable
projects through a loan to the appropriate state agency or agencies
occupying the building or facility for which the project will be
performed.
(f) The Department of General Services shall determine a
reasonable loan repayment schedule that may not exceed the life of
the energy conservation measure equipment, as determined by the
Department of General Services, or the lease term of the building in
which the energy conservation measure is installed.
(g) Maximum loan amounts shall be based on estimated energy cost
savings that will allow state agencies to repay loan principal and
interest within the maximum repayment term specified in this section.
(h) The Department of General Services shall periodically set
interest rates on the loans based on surveys of existing financial
markets and at rates of not less than 1 percent per annum.
(i) Annual loan repayment amounts shall be structured so as to
reflect the projected annualized energy cost avoidance estimated from
the completed project. The Department of General Services may
utilize a direct billing methodology to recover loan repayments for
completed projects.
SEC. 201. Section 25473 of the Public Resources Code is amended to
read:
25473. (a) On or before January 1, 2010, and annually thereafter,
the Department of General Services, in collaboration with the
department, shall submit to the Legislature's fiscal and appropriate
policy committees a report that includes an initial list of projects
identified and planned for the 2009-10 fiscal year, and for each
fiscal year thereafter. The report also shall include the anticipated
cost of each project, an analysis of the results of the methodology,
and an estimate of energy savings to be achieved.
(b) On or before July 1, 2010, the Department of General Services,
in collaboration with the department, shall submit to the
Legislature an update to the January 1, 2010, report.
SEC. 202. Section 25474 of the Public Resources Code is amended to
read:
25474. (a) Any repayment of loans made pursuant to this chapter,
including interest payments, and all interest earnings on or accruing
to, any money resulting from the implementation of this chapter in
the Energy Efficient State Property Revolving Fund, shall be
deposited in that fund and shall be available for the purposes of
this chapter.
(b) The Department of General Services may recover costs of
administering the projects and related costs through energy utility
rebates awarded to the state agency as a result of completed projects
up to 5 percent of the project loan amounts. Project costs can
include energy efficiency improvements and costs associated with
managing the project and administering the loan program, including
all reporting requirements.
SEC. 203. Section 25494 of the Public Resources Code is amended to
read:
25494. Not later than July 31, 1978, the department shall prepare
a manual outlining a methodology by which governmental agencies and
the general public may at their option compare the lifecycle costs of
various building design alternatives. This manual will provide the
information and procedures necessary to evaluate a building's
lifecycle costs in the microclimate and utility service area where it
is to be built.
SEC. 204. Section 25495 of the Public Resources Code is amended to
read:
25495. No later than July 31, 1978, the department shall develop
design guidelines for new construction which include energy
conserving options, including, but not limited to, the use of
daylighting, heating ventilation and air conditioning economizer
cycles, natural ventilation, building envelope solar heat gain
control mechanisms, and alternative energy systems such as solar
energy for space heating and water heating and load management
strategies. These guidelines and the cost analysis done pursuant to
Section 25494 may be considered by government agencies at their
option for ultimate selection of a building design in the competitive
bidding process.
SEC. 205. Section 25496 of the Public Resources Code is amended to
read:
25496. No later than July 1, 1978, the department shall develop
and make available to government agencies and the general public to
be utilized at their option lighting standards for existing
buildings. These standards shall address, but not be limited to, task
and general area lighting levels, light switching and control
mechanisms, and lighting energy budgets. The department may provide
advice and recommendations to the public or any governmental agency
as to the standards.
SEC. 206. Chapter 5.10 (commencing with Section 25499) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 5.10. LOW-INCOME ENERGY ASSISTANCE AND COMMUNITY
SERVICES
25499. (a) The Legislature finds and declares all of the
following:
(1) Low-income energy assistance programs, including the Low
Income Home Energy Assistance Program (LIHEAP) and the Weatherization
Assistance Program (WAP), and Community Service Block Grant program
are administered in California through a statewide network of
community-based organizations, including public and private nonprofit
agencies, that serve as local service providers for a comprehensive
suite of assistance programs designed to ameliorate the causes and
impacts of poverty.
(2) The network of local service providers work closely with their
fellow nonprofit agencies as well as the private sector to meet the
disparate needs of low-income individuals and families by providing a
variety of interrelated services, including home energy, nutrition,
housing, and employment.
(3) Unlike various other energy conservation and energy efficiency
programs administered by the state, the state's LIHEAP and WAP are
designed specifically to meet the energy-related health and safety
needs of low-income individuals and families.
(b) It is the intent of the Legislature to ensure that these
energy and community service programs funded by federal block grants
continue to be administered by a single entity that will maintain and
support the provision of a comprehensive suite of assistance
services to low-income individuals and families and that the positive
impact of these programs on the target population of low-income
individuals and families not be diluted or redirected to other
purposes.
25499.1. The programs transferred pursuant to subdivision (d) of
Section 25202 shall be identified as a separate line item in the
annual Budget Act.
25499.2. The department shall administer the programs and
activities transferred pursuant to subdivision (d) of Section 25202
in compliance with Article 1.7 (commencing with Section 16366.1) of
Chapter 2 of Part 2 of Division 4 of, and Chapter 9 (commencing with
Section 12725) of Part 2 of Division 3 of, Title 2 of the Government
Code. This chapter does not authorize the use of federal block grant
funds in a manner that is inconsistent with federal law or state law,
including Section 12758 of the Government Code.
SEC. 207. Section 25500 of the Public Resources Code is amended to
read:
25500. In accordance with the provisions of this division, the
board shall have the exclusive power to certify all sites and related
facilities in the state, whether a new site and related facility or
a change or addition to an existing facility. The issuance of a
certificate by the board shall be in lieu of any permit, certificate,
or similar document required by any state, local or regional agency,
or federal agency to the extent permitted by federal law, for such
use of the site and related facilities, and shall supersede any
applicable statute, ordinance, or regulation of any state, local, or
regional agency, or federal agency to the extent permitted by federal
law.
After the effective date of this division, no construction of any
facility or modification of any existing facility shall be commenced
without first obtaining certification for any such site and related
facility by the commission, as prescribed in this division.
SEC. 208. Section 25500.5 of the Public Resources Code is amended
to read:
25500.5. The board shall certify sufficient sites and related
facilities that are required to provide a supply of electric power
sufficient to accommodate the demand projected in the most recent
forecast of statewide and regional electric power demands forecasted
pursuant to Section 25303.
SEC. 209. Section 25501 of the Public Resources Code is amended to
read:
25501. This chapter does not apply to any site or related
facility that was not subject to this chapter prior to January 1,
2011, and that as of July 1, 2011, has an application accepted as
complete by the agency with jurisdiction on or before December 31,
2010.
SEC. 210. Section 25501.7 of the Public Resources Code is amended
to read:
25501.7. A person proposing to construct a facility or a site to
which Section 25501 applies may waive the exclusion of the site and
related facility from the provisions of this chapter by submitting to
the department a notice to that effect on or after July 1, 1976, and
any and all of the provisions of this chapter shall apply to the
construction of the facility.
SEC. 211. Section 25502 of the Public Resources Code is amended to
read:
25502. (a) Each person proposing to construct a thermal
powerplant or electric transmission line on a site shall submit to
the department a notice of intention to file an application for the
certification of the site and related facility or facilities. The
notice shall be an attempt primarily to determine the suitability of
the proposed sites to accommodate the facilities and to determine the
general conformity of the proposed sites and related facilities with
standards of the board and assessments of need adopted pursuant to
Sections 25305 to 25308, inclusive. The notice shall be in the form
prescribed by the department and shall be supported by information
that the board may require.
(b) Any site and related facility once found to be acceptable
pursuant to Section 25516 is, and shall continue to be, eligible for
consideration in an application for certification without further
proceedings required for a notice under this chapter.
SEC. 212. Section 25502.3 of the Public Resources Code is amended
to read:
25502.3. Except as provided in Section 25501.7, a person
proposing to construct a facility excluded from this chapter may
waive that exclusion by submitting to the department a notice of
intention to file an application for certification, and any and all
of the provisions of this chapter shall apply to the construction of
that facility.
SEC. 213. Section 25504 of the Public Resources Code is amended to
read:
25504. The notice of intention shall include a statement by the
applicant describing the location of the proposed sites by section or
sections, range and township, and county; a summary of the proposed
design criteria of the facilities; the type or types of fuels to be
used; the methods of construction and operation; the proposed
location of facilities and structures on each site; a preliminary
statement of the relative economic, technological, and environmental
advantages and disadvantages of the alternative site and related
facility proposals; a statement of need for the facility and
information showing the compatibility of the proposals with the most
recent electricity report issued pursuant to Section 25308; and any
other information that an electric utility deems desirable to submit
to the department.
SEC. 214. Section 25504.5 of the Public Resources Code is amended
to read:
25504.5. An applicant may, in the notice, propose a site to be
approved that will accommodate a potential maximum electric
generating capacity in excess of the capacity being proposed for the
initial approval of the board. If this proposal is made, the notice
shall include, but not be limited to, in addition to the information
specified in Section 25504, all of the following:
(a) The number, type, and energy source of electric generating
units that the site is proposed ultimately to accommodate and the
maximum generating capacity for each unit.
(b) The projected installation schedule for each unit.
(c) The impact at the site, when fully developed, on the
environment and public health and safety.
(d) The amount and sources of cooling water needed at the fully
developed site.
(e) The location and specifications of auxiliary facilities
planned for each state of development including, but not limited to,
pipelines, waste storage facilities, fuel storage facilities,
switchyards, coolant lines, coolant outfalls, and cooling ponds,
lakes, or towers.
SEC. 215. Section 25505 of the Public Resources Code is amended to
read:
25505. Upon receipt of a notice, the department shall cause a
summary of the notice to be published in a newspaper of general
circulation in each county in which the sites and related facilities,
or any part thereof, designated in the notice are proposed to be
located. The department shall also transmit a copy of the notice to
the Public Utilities Commission, for sites and related facilities
requiring a certificate of public convenience and necessity, and to
other federal, state, regional, and local agencies having an interest
in matters pertinent to the proposed facilities at any of the
alternative sites. A copy of the notice shall also be transmitted to
the Attorney General.
SEC. 216. Section 25506 of the Public Resources Code is amended to
read:
25506. The department shall request the appropriate local,
regional, state, and federal agencies to make comments and
recommendations regarding the design, operation, and location of the
facilities designated in the notice, in relation to environmental
quality, public health and safety, and other factors on which they
may have expertise.
SEC. 217. Section 25506.5 of the Public Resources Code is amended
to read:
25506.5. The department shall request the Public Utilities
Commission, for sites and related facilities requiring a certificate
of public convenience and necessity, to make comments and
recommendations regarding the design, operation, and location of the
facilities designated in the notice in relation to the economic,
financial, rate, system reliability, and service implications of the
proposed facilities.
SEC. 218. Section 25507 of the Public Resources Code is amended to
read:
25507. (a) If any alternative site and related facility proposed
in the notice is proposed to be located, in whole or in part, within
the coastal zone, the department shall transmit a copy of the notice
to the California Coastal Commission. The California Coastal
Commission shall analyze the notice and prepare the report and
findings prescribed by subdivision (d) of Section 30413 prior to
commencement of hearings pursuant to Section 25513.
(b) If any alternative site and related facility proposed in the
notice is proposed to be located, in whole or in part, within the
Suisun Marsh, or within the jurisdiction of the San Francisco Bay
Conservation and Development Commission, the department shall
transmit a copy of the notice to the San Francisco Bay Conservation
and Development Commission. The San Francisco Bay Conservation and
Development Commission shall analyze the notice and prepare the
report and findings prescribed by subdivision (d) of Section 66645 of
the Government Code prior to commencement of hearings pursuant to
Section 25513.
SEC. 219. Section 25508 of the Public Resources Code is amended to
read:
25508. The department shall cooperate with, and
render advice to, the California Coastal Commission and the San
Francisco Bay Conservation and Development Commission in studying
applications for any site and related facility proposed to be
located, in whole or in part, within the coastal zone, the Suisun
Marsh, or the jurisdiction of the San Francisco Bay Conservation and
Development Commission if requested by the California Coastal
Commission or the San Francisco Bay Conservation and Development
Commission, as the case may be. The California Coastal Commission or
the San Francisco Bay Conservation and Development Commission, as the
case may be, may participate in public hearings on the notice and on
the application for site and related facility certification as an
interested party in the proceedings.
SEC. 220. Section 25509 of the Public Resources Code is amended to
read:
25509. Within 45 days of the filing of the notice, the department
shall conduct public informational presentations in the county or
counties in which the proposed sites and related facilities are
located. The place of the public informational presentations shall be
as close as practicable to the proposed sites. The presentations
shall be for the purpose of setting forth the electrical demand basis
for the proposed site and related facility and providing knowledge
and understanding of the proposed facilities and sites.
SEC. 221. Section 25509.5 of the Public Resources Code is amended
to read:
25509.5. No sooner than 15 days after the conclusion of the
presentations pursuant to Section 25509, the department and the board
shall commence nonadjudicatory hearings. The hearings shall identify
issues for adjudication in hearings pursuant to Section 25513,
issues that may be eliminated from further consideration in the
notice proceedings, and issues that should be deferred to the
certification proceeding. Any person may participate to the extent
deemed reasonable and relevant by the presiding member of the board
in the hearings. In scheduling the hearings the presiding member
shall confer with the public adviser to provide that the hearing
dates and locations are as convenient as possible for interested
parties and the public. The hearings shall be conducted in order to
accomplish all of the following purposes:
(a) To set forth the electrical demand basis for the proposed site
and related facility.
(b) To provide knowledge and understanding of proposed facilities
and sites.
(c) To obtain the views and comments of the public, parties, and
concerned governmental agencies on the environmental, public health
and safety, economic, social, and land use impacts of the facility at
the proposed sites.
(d) To solicit information regarding reasonable alternative
sources of the electric generating capacity or energy to be provided
by alternative sites and related facilities, or combinations thereof,
which will better carry out the policies and objectives of this
division.
SEC. 222. Section 25510 of the Public Resources Code is amended to
read:
25510. After the conclusion of the hearings pursuant to Section
25509.5, and no later than 150 days after filing of the notice, the
department shall prepare and make public a summary and hearing order
on the notice of intention to file an application. The department may
include within the summary and hearing order any other alternatives
proposed by the board or presented to the board at a public hearing
prior to preparation of the summary and hearing order. The summary
and hearing order shall be published and made available to the public
and to interested local, regional, state, and federal agencies.
SEC. 223. Section 25511 of the Public Resources Code is amended to
read:
25511. The department and the board shall review the factors
related to safety and reliability of the facilities at each of the
alternative sites designated in the notice. In addition to other
information requested of the applicant, the board shall, in
determining the appropriateness of sites and related facilities,
require detailed information on proposed emergency systems and safety
precautions, plans for transport, handling and storage of wastes and
fuels, proposed methods to prevent illegal diversion of nuclear
fuels, special design features to account for seismic and other
potential hazards, proposed methods to control density of population
in areas surrounding nuclear powerplants, and any other information
that the board may determine to be relevant to the reliability and
safety of the facility at the proposed sites. The board shall analyze
the information provided by the applicant, supplementing it, where
necessary, by onsite investigations and other studies. The board
shall determine the adequacy of measures proposed by the applicant to
protect public health and safety, and shall include its findings in
the final report required by Section 25514.
SEC. 224. Section 25512 of the Public Resources Code is amended to
read:
25512. (a) The summary and hearing order shall be based upon the
record of the proceeding including statements or documents presented
during any hearing or informational presentation on the notice, the
comments transmitted by the Public Utilities Commission and local,
regional, state, and federal agencies and the public to the
department and the board, and independent studies conducted by the
department's staff.
(b) The summary and hearing order shall:
(1) Identify those issues for consideration in hearings pursuant
to Section 25513.
(2) Identify those issues which may be eliminated from further
consideration in the notice of intention proceedings.
(3) Identify those issues which should be deferred to the
certification proceeding.
(4) Contain proposed findings on matters relevant to the
provisions of Section 25514.
(5) Specify dates for the adjudicatory hearings.
SEC. 225. Section 25513 of the Public Resources Code is amended to
read:
25513. No earlier than 30 days after distribution of the summary
and hearing order, the board shall commence adjudicatory hearings
pursuant to the hearing order.
SEC. 226. Section 25513.3 of the Public Resources Code is amended
to read:
25513.3. Notwithstanding Sections 11425.30 and 11430.10 of the
Government Code, unless a party demonstrates other statutory grounds
for disqualification, a person who has served as investigator or
advocate in an adjudicative proceeding of the board under this code
may serve as a supervisor of the presiding officer or assist or
advise the presiding officer of the board in the same proceeding if
the service, assistance, or advice occurs more than one year after
the time the person served as investigator or advocate and if the
content of any advice is disclosed on the record and all parties have
an opportunity to comment on the advice.
SEC. 227. Section 25514 of the Public Resources Code is amended to
read:
25514. After conclusion of the hearings held pursuant to Section
25513 and no later than 300 days after the filing of the notice, a
final report shall be prepared and distributed. The final report
shall include, but not be limited to, all of the following:
(a) The findings and conclusions of the board regarding the
conformity of alternative sites and related facilities designated in
the notice or considered in the notice of intention proceeding with
both of the following:
(1) The 12-year forecast of statewide and service area electric
power demands adopted pursuant to subdivision (e) of Section 25305,
except as provided in Section 25514.5.
(2) Applicable local, regional, state, and federal standards,
ordinances, and laws, including any long-range land use plans or
guidelines adopted by the state or by any local or regional planning
agency, which would be applicable but for the exclusive authority of
the board to certify sites and related facilities; and the standards
adopted by the board pursuant to Section 25216.3.
(b) Any findings and comments submitted by the California Coastal
Commission pursuant to Section 25507 and subdivision (d) of Section
30413.
(c) Any findings and comments submitted by the San Francisco Bay
Conservation and Development Commission pursuant to Section 25507 of
this code and subdivision (d) of Section 66645 of the Government
Code.
(d) The board's findings on the acceptability and relative merit
of each alternative siting proposal designated in the notice or
presented at the hearings and reviewed by the board. The specific
findings of relative merit shall be made pursuant to Sections 25502
to 25516, inclusive. In its findings on any alternative siting
proposal, the board may specify modification in the design,
construction, location, or other conditions that will meet the
standards, policies, and guidelines established by the board.
(e) Findings and conclusions with respect to the safety and
reliability of the facility or facilities at each of the sites
designated in the notice, as determined by the board pursuant to
Section 25511, and any conditions, modifications, or criteria
proposed for any site and related facility proposal resulting from
the findings and conclusions.
(f) Findings and conclusions as to whether increased property
taxes due to the construction of the project are sufficient to
support needed local improvements and public services required to
serve the project.
SEC. 228. Section 25514.3 of the Public Resources Code is amended
to read:
25514.3. In specifying any modifications, conditions, or criteria
pursuant to Section 25514, for sites and related facilities
requiring a certificate of public convenience and necessity, the
board shall request the comments and recommendations of the Public
Utilities Commission on the economic, financial, rate, system
reliability, and service implications of the modifications,
conditions, or criteria.
SEC. 229. Section 25514.5 of the Public Resources Code is amended
to read:
25514.5. In considering the acceptability of a site proposed to
accommodate ultimately additional power-generating capacity, the
board, in determining, pursuant to Sections 25514 and 25512, the
conformity of the facilities proposed in the notice with the 12-year
forecast of statewide and service area electric power demands adopted
pursuant to subdivision (e) of Section 25305, shall base its
determination only on such initial facilities as are proposed for
operation within the forthcoming 12-year period. Additional
facilities projected to be operating at the site at a time beyond the
forthcoming 12-year period shall not be considered in the
determination of conformity with the electric power demand forecast.
SEC. 230. Section 25516 of the Public Resources Code is amended to
read:
25516. (a) The approval of the notice by the board shall be based
upon findings pursuant to Section 25514. The notice shall not be
approved unless the board finds at least two alternative site and
related facility proposals considered in the board's final report as
acceptable. If the board does not find at least two sites and related
facilities acceptable, additional sites and related facilities may
be proposed by the applicant, which shall be considered in the same
manner as those proposed in the original notice.
(b) If the board finds that a good faith effort has been made by
the person submitting the notice to find an acceptable alternative
site and related facility and that there is only one acceptable site
and related facility among those submitted, the board may approve the
notice based on the one site and related facility. If a notice is
approved based on one site and related facility, the board may
require a new notice to be filed to identify acceptable alternative
sites and related facilities for the one site and related facility
approved unless suitable alternative sites and related facilities
have been approved by the board in previous notice of intention
proceedings.
(c) If the board finds that additional electric generating
capacity is needed to accommodate the electric power demand forecast
pursuant to subdivision (e) of Section 25305 and, after the board
finds that a good faith effort was made by the person submitting the
notice to propose an acceptable site and related facility, it fails
to find any proposed site and related facility to be acceptable, the
board shall designate, at the request of and at the expense of the
person submitting the notice, a feasible site and related facility
for providing the needed electric generating capacity.
SEC. 231. Section 25516.1 of the Public Resources Code is amended
to read:
25516.1. If a site and related facility found to be acceptable by
the board pursuant to Section 25516 is located in the coastal zone,
the Suisun Marsh, or the jurisdiction of the San Francisco Bay
Conservation and Development Commission, an application for
certification shall not be filed pursuant to Section 25519 unless the
board has determined, pursuant to Section 25514, that the site and
related facility have greater relative merit than available
alternative sites and related facilities for an applicant's service
area that have been determined to be acceptable by the board pursuant
to Section 25516.
SEC. 232. Section 25516.5 of the Public Resources Code is amended
to read:
25516.5. (a) On a notice that proposes an expanded ultimate
electric generating capacity for a site, the board may, based upon
findings pursuant to Section 25514, either approve the notice only
for the initial facility or facilities proposed for operation within
the forthcoming 12-year period or may approve the notice for the
initial facility or facilities and find the site acceptable for
additional generating capacity of the type tentatively proposed. The
maximum allowable amount and type of additional capacity shall be
determined by the board.
(b) If a notice is approved that includes a finding that a
particular site is suitable to accommodate a particular additional
generating capacity, the site shall be designated a potential
multiple-facility site. The board may, in determining the
acceptability of a potential multiple-facility site, specify
conditions or criteria necessary to insure that future additional
facilities will not exceed the limitations of the site.
SEC. 233. Section 25516.6 of the Public Resources Code is amended
to read:
25516.6. (a) Except as otherwise expressly provided in this
division, the board shall issue its written decision on the notice
not later than 12 months after the notice is filed, or at any later
time as is mutually agreed upon by the board and the applicant.
(b) The board shall determine, within 45 days after it receives
the notice, whether the notice is complete. If the board determines
that the notice is complete, the notice shall be deemed filed for the
purpose of this section on the date that this determination is made.
If the board determines that the notice is incomplete, the board
shall specify, in writing, those parts of the notice that are
incomplete and shall indicate the manner in which it can be made
complete. If the applicant submits additional data to complete the
notice, the board shall determine, within 30 days after receipt of
that data, whether the data is sufficient to make the notice
complete. The notice shall be deemed filed on the date the board
determines the notice is complete if the board has adopted
regulations specifying the informational requirements for a complete
notice, but if the board has not adopted regulations, the notice
shall be deemed filed on the last date the board receives any
additional data that completes the notice.
SEC. 234. Section 25517 of the Public Resources Code is amended to
read:
25517. Except as provided in Section 25501, construction of a
thermal powerplant or electric transmission line shall not be
commenced by any electric utility without first obtaining
certification as prescribed in this division. Any onsite improvements
not qualifying as construction may be required to be restored as
determined by the board to be necessary to protect the environment,
if certification is denied.
SEC. 235. Section 25518 of the Public Resources Code is amended to
read:
25518. The Public Utilities Commission shall not issue a
certificate of public convenience and necessity for a site or related
electrical facilities unless the utility has obtained a certificate
from the board.
SEC. 236. Section 25519 of the Public Resources Code is amended to
read:
25519. (a) In order to obtain certification for a site and
related facility, an application for certification of the site and
related facility shall be filed with the department. The application
shall be in a form prescribed by the board and shall be for a site
and related facility that has been found to be acceptable by the
board pursuant to Section 25516, or for an additional facility at a
site that has been designated a potential multiple-facility site
pursuant to Section 25514.5 and found to be acceptable pursuant to
Sections 25516 and 25516.5. An application for an additional facility
at a potential multiple-facility site shall be subject to the
conditions and review specified in Section 25520.5. An application
shall not be filed for a site and related facility if there is no
suitable alternative for the site and related facility that was
previously found to be acceptable by the board, unless the board has
approved the notice based on the one site as specified in Section
25516.
(b) The board, upon its own motion or in response to the request
of any party, may require the applicant to submit any information,
document, or data, in addition to the attachments required by
subdivision (i), that it determines is reasonably necessary to make
any decision on the application.
(c) The department shall be the lead agency as provided in Section
21165 for all projects that require certification pursuant to this
chapter and for projects that are exempted from such certification
pursuant to Section 25541. Unless the department's regulatory program
governing site and facility certification and related proceedings
are certified by the Natural Resources Agency pursuant to Section
21080.5, an environmental impact report shall be completed within one
year after receipt of the application. If the department prepares a
document or documents in the place of an environmental impact report
or negative declaration under a regulatory program certified pursuant
to Section 21080.5, any other public agency that must make a
decision that is subject to the California Environmental Quality Act,
Division 13 (commencing with Section 21000), on a site or related
facility, shall use the document or documents prepared by the
department in the same manner as they would use an environmental
impact report or negative declaration prepared by a lead agency.
(d) If the site and related facility specified in the application
is proposed to be located in the coastal zone, the department shall
transmit a copy of the application to the California Coastal
Commission for its review and comments.
(e) If the site and related facility specified in the application
is proposed to be located in the Suisun Marsh or the jurisdiction of
the San Francisco Bay Conservation and Development Commission, the
department shall transmit a copy of the application to the San
Francisco Bay Conservation and Development Commission for its review
and comments.
(f) Upon receipt of an application, the department shall forward
the application to local governmental agencies having land use and
related jurisdiction in the area of the proposed site and related
facility. Those local agencies shall review the application and
submit comments on, among other things, the design of the facility,
architectural and aesthetic features of the facility, access to
highways, landscaping and grading, public use of lands in the area of
the facility, and other appropriate aspects of the design,
construction, or operation of the proposed site and related facility.
(g) Upon receipt of an application, the department shall cause a
summary of the application to be published in a newspaper of general
circulation in the county in which the site and related facilities,
or any part thereof, designated in the application, is proposed to be
located. The department shall transmit a copy of the application to
each federal and state agency having jurisdiction or special interest
in matters pertinent to the proposed site and related facilities and
to the Attorney General.
(h) Local and state agencies having jurisdiction or special
interest in matters pertinent to the proposed site and related
facilities shall provide their comments and recommendations on the
project within 180 days of the date of filing of an application.
(i) The adviser shall require that adequate notice is given to the
public and that the procedures specified by this division are
complied with.
(j) For any proposed site and related facility requiring a
certificate of public convenience and necessity, the department shall
transmit a copy of the application to the Public Utilities
Commission and request the comments and recommendations of the Public
Utilities Commission on the economic, financial, rate, system
reliability, and service implications of the proposed site and
related facility. If the board requires modification of the proposed
facility, the department shall consult with the Public Utilities
Commission regarding the economic, financial, rate, system
reliability, and service implications of those modifications.
(k) The department shall transmit a copy of the application to any
governmental agency not specifically mentioned in this act, but
which it finds has any information or interest in the proposed site
and related facilities, and shall invite the comments and
recommendations of each agency. The department shall request any
relevant laws, ordinances, or regulations that an agency has
promulgated or administered.
( l ) An application for certification of any site and
related facilities shall contain a listing of every federal agency
from which any approval or authorization concerning the proposed site
is required, specifying the approvals or authorizations obtained at
the time of the application and the schedule for obtaining any
approvals or authorizations pending.
SEC. 237. Section 25520 of the Public Resources Code is amended to
read:
25520. The application shall contain all of the following
information and any other information that the board by regulation
may require:
(a) A detailed description of the design, construction, and
operation of the proposed facility.
(b) Safety and reliability information, including, in addition to
documentation previously provided pursuant to Section 25511, planned
provisions for emergency operations and shutdowns.
(c) Available site information, including maps and descriptions of
present and proposed development and, as appropriate, geological,
aesthetic, ecological, seismic, water supply, population, and load
center data, and justification for the particular site proposed.
(d) Any other information relating to the design, operation, and
siting of the facility that the board may specify.
(e) A description of the facility, the cost of the facility, the
fuel to be used, the source of fuel, fuel cost, plant service life
and capacity factor, and generating cost per kilowatthour.
(f) A description of any electric transmission lines, including
the estimated cost of the proposed electric transmission line; a map
in suitable scale of the proposed routing showing details of the
rights-of-way in the vicinity of settled areas, parks, recreational
areas, and scenic areas, and existing transmission lines within one
mile of the proposed route; justification for the route, and a
preliminary description of the effect of the proposed electric
transmission line on the environment, ecology, and scenic, historic,
and recreational values.
SEC. 238. Section 25520.5 of the Public Resources Code is amended
to read:
25520.5. (a) In reviewing an application for an additional
facility at a potential multiple-facility site, the board shall
undertake a reconsideration of its prior determinations in the final
report on the notice for the site issued pursuant to Section 25514,
based on current conditions and other reasonable and feasible
alternatives to the proposed facility.
(b) Within 180 days of the filing of the application for an
additional facility at a potential multiple-facility site and after
adequate public hearings, the board shall issue its decision on the
acceptability of the proposed facility based on the reconsideration
specified in subdivision (a) of this section. A negative
determination shall be the final decision of the commission on the
application and subject to judicial review pursuant to Section 25531.
An affirmative determination shall not be a final decision of the
board on the application.
(c) The decision of the board on an application for an additional
facility at a potential multiple-facility site receiving a favorable
determination pursuant to subdivision (b) of this section shall be
issued within 24 months after the filing of the application or at a
later time that is mutually agreed upon by the board and the
applicant.
SEC. 239. Section 25521 of the Public Resources Code is amended to
read:
25521. No earlier than 90 nor later than 240 days after the date
of the filing of an application, the board shall commence a public
hearing or hearings on the application in Sacramento, San Francisco,
Los Angeles, or San Diego, whichever city is nearest the proposed
site. Additionally, the board may hold a hearing or hearings in the
county in which the proposed site and related facilities are to be
located. The board hearings shall provide a reasonable opportunity
for the public and all parties to the proceeding to comment upon the
application and the department staff assessment and shall provide the
equivalent opportunity for comment as required pursuant to Division
13 (commencing with Section 21000). Consistent with the requirements
of this section, the board shall have the discretion to determine
whether or not a hearing is to be conducted in a manner that requires
formal examination of witnesses or that uses other similar
adjudicatory procedures.
SEC. 240. Section 25522 of the Public Resources Code is amended to
read:
25522. (a) Except as provided in subdivision (c) of Section
25520.5, within 18 months of the filing of an application for
certification, or within 12 months if it is filed within one year of
the board's approval of the notice of intent, or at a later time that
is mutually agreed upon by the board and the applicant,
the board shall issue a written
decision as to the application.
(b) The department shall determine, within 45 days after it
receives the application, whether the application is complete. If the
department determines that the application is complete, the
application shall be deemed filed for purposes of this section on the
date that this determination is made. If the department determines
that the application is incomplete, the department shall specify in
writing those parts of the application that are incomplete and shall
indicate the manner in which it can be made complete. If the
applicant submits additional data to complete the application, the
department shall determine, within 30 days after receipt of that
data, whether the data is sufficient to make the application
complete. The application shall be deemed filed on the date when the
department determines the application is complete if the board has
adopted regulations specifying the informational requirements for a
complete application, but if the board has not adopted regulations,
the application shall be deemed filed on the last date the department
receives any additional data that completes the application.
SEC. 241. Section 25523 of the Public Resources Code is amended to
read:
25523. The board shall prepare a written decision after the
public hearing on an application, that includes all of the following:
(a) Specific provisions relating to the manner in which the
proposed facility is to be designed, sited, and operated in order to
protect environmental quality and ensure public health and safety.
(b) In the case of a site to be located in the coastal zone,
specific provisions to meet the objectives of Division 20 (commencing
with Section 30000) as may be specified in the report submitted by
the California Coastal Commission pursuant to subdivision (d) of
Section 30413, unless the board specifically finds that the adoption
of the provisions specified in the report would result in greater
adverse effect on the environment or that the provisions proposed in
the report would not be feasible.
(c) In the case of a site to be located in the Suisun Marsh or in
the jurisdiction of the San Francisco Bay Conservation and
Development Commission, specific provisions to meet the requirements
of Division 19 (commencing with Section 29000) of this code or Title
7.2 (commencing with Section 66600) of the Government Code as may be
specified in the report submitted by the San Francisco Bay
Conservation and Development Commission pursuant to subdivision (d)
of Section 66645 of the Government Code, unless the board
specifically finds that the adoption of the provisions specified in
the report would result in greater adverse effect on the environment
or the provisions proposed in the report would not be feasible.
(d) (1) Findings regarding the conformity of the proposed site and
related facilities with standards adopted by the board pursuant to
Section 25216.3 and subdivision (d) of Section 25402, with public
safety standards and the applicable air and water quality standards,
and with other applicable local, regional, state, and federal
standards, ordinances, or laws. If the board finds that there is
noncompliance with a state, local, or regional ordinance or
regulation in the application, it shall consult and meet with the
state, local, or regional governmental agency concerned to attempt to
correct or eliminate the noncompliance. If the noncompliance cannot
be corrected or eliminated, the department shall inform the state,
local, or regional governmental agency if it makes the findings
required by Section 25525.
(2) The board may not find that the proposed facility conforms
with applicable air quality standards pursuant to paragraph (1)
unless the applicable air pollution control district or air quality
management district certifies, prior to the licensing of the project
by the board, that complete emissions offsets for the proposed
facility have been identified and will be obtained by the applicant
within the time required by the district's rules or unless the
applicable air pollution control district or air quality management
district certifies that the applicant requires emissions offsets to
be obtained prior to the commencement of operation consistent with
Section 42314.3 of the Health and Safety Code and prior to
commencement of the operation of the proposed facility. The board
shall require as a condition of certification that the applicant
obtain any required emission offsets within the time required by the
applicable district rules, consistent with any applicable federal and
state laws and regulations, and prior to the commencement of the
operation of the proposed facility.
(e) Provision for restoring the site as necessary to protect the
environment, if the board denies approval of the application.
(f) In the case of a site and related facility using resource
recovery (waste-to-energy) technology, specific conditions requiring
that the facility be monitored to ensure compliance with paragraphs
(1), (2), (3), and (6) of subdivision (a) of Section 42315 of the
Health and Safety Code.
(g) In the case of a facility, other than a resource recovery
facility subject to subdivision (f), specific conditions requiring
the facility to be monitored to ensure compliance with toxic air
contaminant control measures adopted by an air pollution control
district or air quality management district pursuant to subdivision
(d) of Section 39666 or Section 41700 of the Health and Safety Code,
whether the measures were adopted before or after issuance of a
determination of compliance by the district.
(h) A discussion of any public benefits from the project
including, but not limited to, economic benefits, environmental
benefits, and electricity reliability benefits.
SEC. 242. Section 25524.1 of the Public Resources Code is amended
to read:
25524.1. (a) Except for the existing Diablo Canyon Units 1 and 2
owned by Pacific Gas and Electric Company and San Onofre Units 2 and
3 owned by Southern California Edison Company and San Diego Gas and
Electric Company, a nuclear fission thermal powerplant requiring the
reprocessing of fuel rods, including any to which this chapter does
not otherwise apply, excepting any having a vested right as defined
in this section, shall not be permitted land use in the state or,
where applicable, certified by the board until both of the following
conditions are met:
(1) The board finds that the United States through its authorized
agency has identified and approved, and there exists a technology for
the construction and operation of, nuclear fuel rod reprocessing
plants.
(2) The board has reported its findings and the reasons therefor
pursuant to paragraph (1) to the Legislature. That report shall be
assigned to the appropriate policy committees for review. The board
may proceed to certify nuclear fission thermal powerplants 100
legislative days after reporting the board's findings unless within
those 100 legislative days either house of the Legislature adopts by
a majority vote of its members a resolution disaffirming the findings
of the board made pursuant to paragraph (1).
(3) A resolution of disaffirmance shall set forth the reasons for
the action and shall provide, to the extent possible, guidance to the
board as to an appropriate method of bringing the board's findings
into conformance with paragraph (1).
(4) If a disaffirming resolution is adopted, the board shall
reexamine its original findings consistent with matters raised in the
resolution. On conclusion of its reexamination, the board shall
transmit its findings in writing, with the reasons therefor, to the
Legislature.
(5) If the findings are that the conditions of paragraph (1) have
been met, the board may proceed to certify nuclear fission thermal
powerplants 100 legislative days after reporting its findings to the
Legislature unless within those 100 legislative days both houses of
the Legislature act by statute to declare the findings null and void
and take appropriate action.
(6) To allow sufficient time for the Legislature to act, the
reports of findings of the board shall be submitted to the
Legislature at least six calendar months prior to the adjournment of
the Legislature sine die.
(b) The board shall further find on a case-by-case basis that
facilities with adequate capacity to reprocess nuclear fuel rods from
a certified nuclear facility or to store that fuel if that storage
is approved by an authorized agency of the United States are in
actual operation or will be in operation at the time that the nuclear
facility requires reprocessing or storage; provided, however, that
the storage of fuel is in an offsite location to the extent necessary
to provide continuous onsite full core reserve storage capacity.
(c) The board shall continue to receive and process applications
for certification pursuant to this division, but the board shall not
issue a decision pursuant to Section 25523 granting a certificate
until the requirements of this section have been met. All other
permits, licenses, approvals, or authorizations for the entry or use
of the land, including orders of court that may be required may be
processed and granted by the governmental entity concerned, but
construction work to install permanent equipment or structures shall
not commence until the requirements of this section have been met.
SEC. 243. Section 25524.2 of the Public Resources Code is amended
to read:
25524.2. Except for the existing Diablo Canyon Units 1 and 2
owned by Pacific Gas and Electric Company and San Onofre Units 2 and
3 owned by Southern California Edison Company and San Diego Gas and
Electric Company, a nuclear fission thermal powerplant, including any
to which this chapter does not otherwise apply, but excepting those
exempted herein, shall not be permitted land use in the state, or
where applicable, be certified by the board until both of the
following conditions have been met:
(a) The board finds that there has been developed and that the
United States through its authorized agency has approved and there
exists a demonstrated technology or means for the disposal of
high-level nuclear waste.
(b) (1) The board has reported its findings and the reasons
therefor pursuant to paragraph (a) to the Legislature. That report
shall be assigned to the appropriate policy committees for review.
The board may proceed to certify nuclear fission thermal powerplants
100 legislative days after reporting its findings unless within those
100 legislative days either house of the Legislature adopts by a
majority vote of its members a resolution disaffirming the findings
of the board made pursuant to subdivision (a).
(2) A resolution of disaffirmance shall set forth the reasons for
the action and shall provide, to the extent possible, guidance to the
board as to an appropriate method of bringing the board's findings
into conformance with subdivision (a).
(3) If a disaffirming resolution is adopted, the board shall
reexamine its original findings consistent with matters raised in the
resolution. On conclusion of its reexamination, the board shall
transmit its findings in writing, with the reasons therefor, to the
Legislature.
(4) If the findings are that the conditions of subdivision (a)
have been met, the board may proceed to certify nuclear fission
thermal powerplants 100 legislative days after reporting its findings
to the Legislature unless within those 100 legislative days both
houses of the Legislature act by statute to declare the findings null
and void and take appropriate action.
(5) To allow sufficient time for the Legislature to act, the
reports of findings of the board shall be submitted to the
Legislature at least six calendar months prior to the adjournment of
the Legislature sine die.
(c) As used in subdivision (a), "technology or means for the
disposal of high-level nuclear waste" means a method for the
permanent and terminal disposition of high-level nuclear waste.
Nothing in this section requires that facilities for the application
of that technology or means be available at the time that the board
makes its findings. That disposition of high-level nuclear waste does
not preclude the possibility of an approved process for retrieval of
the waste.
(d) The board shall continue to receive and process notices of
intention and applications for certification pursuant to this
division but shall not issue a decision pursuant to Section 25523
granting a certificate until the requirements of this section have
been met. All other permits, licenses, approvals, or authorizations
for the entry or use of the land, including orders of court that may
be required may be processed and granted by the governmental entity
concerned, but construction work to install permanent equipment or
structures shall not commence until the requirements of this section
have been met.
SEC. 244. Section 25524.5 of the Public Resources Code is amended
to read:
25524.5. The board shall not certify any facility that adds
generating capacity to a potential multiple-facility site in excess
of the maximum allowable capacity established by the board pursuant
to Section 25516.5, unless the board finds that exceeding the maximum
allowable capacity will not increase adverse environmental impacts
or create technological, seismic, or other difficulties beyond those
already found acceptable in the board's findings on the notice for
that site pursuant to Sections 25516 and 25516.5.
SEC. 245. Section 25525 of the Public Resources Code is amended to
read:
25525. The board shall not certify a facility contained in the
application if it finds, pursuant to subdivision (d) of Section
25523, that the facility does not conform with any applicable state,
local, or regional standards, ordinances, or laws, unless the board
determines that the facility is required for public convenience and
necessity and that there are not more prudent and feasible means of
achieving public convenience and necessity. In making the
determination, the board shall consider the entire record of the
proceeding, including, but not limited to, the impacts of the
facility on the environment, consumer benefits, and electric system
reliability. The board shall not make a finding in conflict with
applicable federal law or regulation. The basis for these findings
shall be reduced to writing and submitted as part of the record
pursuant to Section 25523.
SEC. 246. Section 25526 of the Public Resources Code is amended to
read:
25526. (a) The board shall not approve as a site for a facility
any location designated by the California Coastal Commission pursuant
to subdivision (b) of Section 30413, unless the California Coastal
Commission first finds that the use is not inconsistent with the
primary uses of that land and that there will be no substantial
adverse environmental effects and unless the approval of any public
agency having ownership or control of the land is obtained.
(b) The board shall not approve as a site for a facility any
location designated by the San Francisco Bay Conservation and
Development Commission pursuant to subdivision (b) of Section 66645
of the Government Code unless the San Francisco Bay Conservation and
Development Commission first finds that such use is not inconsistent
with the primary uses of such land and that there will be no
substantial adverse environmental effects and unless the approval of
any public agency having ownership or control of the land is
obtained.
SEC. 247. Section 25527 of the Public Resources Code is amended to
read:
25527. The following areas of the state shall not be approved as
a site for a facility, unless the board finds that the use is not
inconsistent with the primary uses of those lands and that there will
be no substantial adverse environmental effects and the approval of
any public agency having ownership or control of those lands is
obtained:
(a) State, regional, county, and city parks; wilderness, scenic,
or natural reserves; areas for wildlife protection, recreation,
historic preservation; or natural preservation areas in existence on
the effective date of this division.
(b) Estuaries in an essentially natural and undeveloped state.
In considering applications for certification, the board shall
give the greatest consideration to the need for protecting areas of
critical environmental concern, including, but not limited to, unique
and irreplaceable scientific, scenic, and educational wildlife
habitats; unique historical, archeological, and cultural sites; lands
of hazardous concern; and areas under consideration by the state or
the United States for wilderness, or wildlife and game reserves.
SEC. 248. Section 25528 of the Public Resources Code is amended to
read:
25528. (a) The board shall require, as a condition of
certification of any site and related facility, that the applicant
acquire, by grant or contract, the right to prohibit development of
privately owned lands in the area of the proposed site that will
result in population densities in excess of the maximum population
densities that the board determines, as to the factors considered by
the board pursuant to Section 25511, are necessary to protect public
health and safety.
If the applicant is authorized to exercise the right of eminent
domain under Article 7 (commencing with Section 610) of Chapter 3 of
Part 1 of Division 1 of the Public Utilities Code, the applicant may
exercise the right of eminent domain to acquire those development
rights that the board requires be acquired.
(b) In the case of an application for a nuclear facility, the area
and population density necessary to ensure the public's health and
safety designated by the board shall be that as determined from time
to time by the United States Nuclear Regulatory Commission, if the
board finds that the determination is sufficiently definitive for
valid land use planning requirements.
(c) The board shall waive the requirements of the acquisition of
development rights by an applicant to the extent that the board finds
that existing governmental land use restrictions are of a type
necessary and sufficient to guarantee the maintenance of population
levels and land use development over the lifetime of the facility
which will ensure the public health and safety requirements set
pursuant to this section.
(d) No change in governmental land use restrictions in areas
designated in subdivision (c) of this section by any government
agency shall be effective until approved by the board. This approval
shall certify that the change in land use restrictions is not in
conflict with requirements provided for by this section.
(e) It is not the intent of the Legislature by the enactment of
this section to take private property for public use without payment
of just compensation in violation of the United States Constitution
or the Constitution of California.
SEC. 249. Section 25529 of the Public Resources Code is amended to
read:
25529. If a facility is proposed to be located in the coastal
zone or any other area with recreational, scenic, or historic value,
the board shall require, as a condition of certification of any
facility contained in the application, that an area be established
for public use, as determined by the board. Lands within the area
shall be acquired and maintained by the applicant and shall be
available for public access and use, subject to restrictions required
for security and public safety. The applicant may dedicate the
public use zone to any local agency agreeing to operate or maintain
it for the benefit of the public. If no local agency agrees to
operate or maintain the public use zone for the benefit of the
public, the applicant may dedicate the zone to the state. The board
shall also require that any facility to be located along the coast or
shoreline of any major body of water be set back from the shoreline
to permit reasonable public use and to protect scenic and aesthetic
values.
SEC. 250. Section 25530 of the Public Resources Code is amended to
read:
25530. (a) The board may order a reconsideration of all or part
of a decision or order on its own motion or on petition of any
party.
(b) The petition for reconsideration shall be filed within 30
days after adoption by the board of a decision or order. The board
shall not order a reconsideration on its own motion more than 30 days
after it has adopted a decision or order. The board shall order or
deny reconsideration on a petition within 30 days after the petition
is filed.
(c) A decision or order may be reconsidered by the board on the
basis of all pertinent portions of the record together with any
argument that the board may permit, or the board may hold a further
hearing, after notice to all interested persons. A decision or order
of the board on reconsideration shall have the same force and effect
as an original order or decision.
SEC. 251. Section 25531 of the Public Resources Code is amended to
read:
25531. (a) The decisions of the board on any application for
certification of a site and related facility are subject to judicial
review by the Supreme Court of California.
(b) New or additional evidence shall not be introduced upon
review and the cause shall be heard on the record of the board as
certified to by it. The review shall not be extended further than to
determine whether the board has regularly pursued its authority,
including a determination of whether the order or decision under
review violates any right of the petitioner under the United States
Constitution or the California Constitution. The findings and
conclusions of the board on questions of fact are final and are not
subject to review, except as provided in this article. These
questions of fact shall include ultimate facts and the findings and
conclusions of the board. A report prepared by, or an approval of,
the board pursuant to Section 25510, 25514, 25516, or 25516.5, or
subdivision (b) of Section 25520.5, shall not constitute a decision
of the board subject to judicial review.
(c) Subject to the right of judicial review of decisions of the
board, no court in this state has jurisdiction to hear or determine
any case or controversy concerning any matter which was, or could
have been, determined in a proceeding before the board, or to stop or
delay the construction or operation of any thermal powerplant except
to enforce compliance with the provisions of a decision of the
board.
(d) Notwithstanding Section 1250.370 of the Code of Civil
Procedure:
(1) If the board requires, pursuant to subdivision (a) of Section
25528, as a condition of certification of any site and related
facility, that the applicant acquire development rights, that
requirement conclusively establishes the matters referred to in
Sections 1240.030 and 1240.220 of the Code of Civil Procedure in any
eminent domain proceeding brought by the applicant to acquire the
development rights.
(2) If the board certifies any site and related facility, that
certification conclusively establishes the matters referred to in
Sections 1240.030 and 1240.220 of the Code of Civil Procedure in any
eminent domain proceeding brought to acquire the site and related
facility.
(e) A decision of the board pursuant to Section 25516, 25522, or
25523 shall not be found to mandate a specific supply plan for any
utility as prohibited by Section 25323.
SEC. 252. Section 25532 of the Public Resources Code is amended to
read:
25532. The department shall establish a monitoring system to
assure that any facility certified under this division is constructed
and is operating in compliance with air and water quality, public
health and safety, and other applicable regulations, guidelines, and
conditions adopted or established by the board or specified in the
written decision on the application. In designing and operating the
monitoring system, the department shall seek the cooperation and
assistance of the State Air Resources Board, the State Water
Resources Control Board, the Department of Health, and other state,
regional, and local agencies which have an interest in environmental
control.
SEC. 253. Section 25534 of the Public Resources Code is amended to
read:
25534. (a) The board may, after one or more hearings, amend the
conditions of, or revoke the certification for, any facility for any
of the following reasons:
(1) Any material false statement set forth in the application,
presented in proceedings of the board, or included in supplemental
documentation provided by the applicant.
(2) Any significant failure to comply with the terms or conditions
of approval of the application, as specified by the board in its
written decision.
(3) A violation of this division or any regulation or order issued
by the board under this division.
(b) The board may also administratively impose a civil penalty for
a violation of paragraph (1) or (2) of subdivision (a). Any civil
penalty shall be imposed in accordance with Section 25534.1 and may
not exceed seventy-five thousand dollars ($75,000) per violation,
except that the civil penalty may be increased by an amount not to
exceed one thousand five hundred dollars ($1,500) per day for each
day in which the violation occurs or persists, but the total of the
per day penalties may not exceed fifty thousand dollars ($50,000).
(c) A project owner shall commence construction of a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) within 12 months after the project has been
certified by the board and after all accompanying project permits are
final and administrative and judicial appeals have been completed.
The project owner shall submit construction and commercial operation
milestones to the board within 30 days after project certification.
Construction milestones shall require the start of construction
within the 12-month period established by this subdivision. The board
shall approve milestones within 60 days after project certification.
If the 30-day deadline to submit construction milestones to the
board is not met, the board shall establish milestones for the
project.
(d) The failure of the owner of a project subject to the
state-of-construction deadline provided by paragraph (4) of
subdivision (a) to meet construction or commercial operation
milestones, without a finding by the board of good cause, shall be
cause for revocation of certification or the imposition of other
penalties by the department.
(e) A finding by the board that there is good cause for failure to
meet the start-of-construction deadline required by paragraph (4) of
subdivision (a) or any subsequent milestones of subdivision (c)
shall be made if the board
determines that any of the following criteria are met:
(1) The change in any deadline or milestone does not change the
established deadline or milestone for the start of commercial
operation.
(2) The deadline or milestone is changed due to circumstances
beyond the project owner's control, including, but not limited to,
administrative and legal appeals.
(3) The deadline or milestone will be missed but the project owner
demonstrates a good faith effort to meet the project deadline or
milestone.
(4) The deadline or milestone will be missed due to unforeseen
natural disasters or acts of God that prevent timely completion of
the project deadline or milestone.
(5) The deadline or milestone will be missed for any other reason
determined reasonable by the board.
(f) The board shall extend the start-of-construction deadline
required by paragraph (4) of subdivision (a) by an additional 24
months if the owner reimburses the department's actual cost of
licensing the project, less the amount paid pursuant to subdivision
(a) of Section 25806. For the purposes of this section, the
department's actual cost of licensing the project shall be based on a
certified audit report filed by the department staff within 180 days
of the board's certification of the project. The certified audit
shall be filed and served on all parties to the proceeding, is
subject to public review and comment, and is subject to at least one
public hearing if requested by the project owner. Any reimbursement
received by the department pursuant to this subdivision shall be
deposited in the General Fund.
(g) If the owner of a project subject to the start-of-construction
deadline provided by paragraph (4) of subdivision (a) fails to
commence construction, without good cause, within 12 months after the
project has been certified by the board and has not received an
extension pursuant to subdivision (f), the department shall provide
immediate notice to the California Consumer Power and Conservation
Financing Authority. The authority shall evaluate whether to pursue
the project independently or in conjunction with any other public or
private entity, including the original certificate holder. If the
authority demonstrates to the department that it is willing and able
to construct the project either independently or in conjunction with
any other public or private entity, including the original
certificate holder, the board may revoke the original certification
and issue a new certification for the project to the authority,
unless the authority's statutory authorization to finance or approve
new programs, enterprises, or projects has expired. If the authority
declines to pursue the project, the permit shall remain with the
current project owner until it expires pursuant to the regulations
adopted by the board.
(h) If the board issues a new certification for a project subject
to the start-of-construction deadline provided by paragraph (4) of
subdivision (a) to the authority, the board shall adopt new
milestones for the project that allow the authority up to 24 months
to start construction of the project or to start to meet the
applicable deadlines or milestones. If the authority fails to begin
construction in conformity with the deadlines or milestones adopted
by the board, without good cause, the certification may be revoked.
(i) (1) If the board issues a new certification for a project
subject to the start-of-construction deadline provided by paragraph
(4) of subdivision (a) to the authority and the authority pursues the
project without participation of the original certificate holder,
the authority shall offer to reimburse the original certificate
holder for the actual costs the original certificate holder incurred
in permitting the project and in procuring assets associated with the
license, including, but not limited to, major equipment and the
emission offsets. In order to receive reimbursement, the original
certificate holder shall provide to the department documentation of
the actual costs incurred in permitting the project. The department
shall validate those costs. The certificate holder may refuse to
accept the offer of reimbursement for any asset associated with the
license and retain the asset. To the extent the certificate holder
chooses to accept the offer for an asset, it shall provide the
authority with the asset.
(2) If the authority reimburses the original certificate holder
for the costs described in paragraph (1), the original certificate
holder shall provide the authority with all of the assets for which
the original certificate holder received reimbursement.
(j) This section does not prevent a certificate holder from
selling its license to construct and operate a project prior to its
revocation by the board. In the event of a sale to an entity that is
not an affiliate of the certificate holder, the board shall adopt new
deadlines or milestones for the project that allow the new
certificate holder up to 12 months to start construction of the
project or to start to meet the applicable deadlines or milestones.
(k) Paragraph (4) of subdivision (a) and subdivisions (c) to (j),
inclusive, do not apply to licenses issued for the modernization,
repowering, replacement, or refurbishment of existing facilities or
to a qualifying small power production facility or a qualifying
cogeneration facility within the meaning of Sections 201 and 210 of
Title II of the federal Public Utility Regulatory Policies Act of
1978 (16 U.S.C. Secs. 796(17), 796(18), and 824a-3), and the
regulations adopted pursuant to those sections by the Federal Energy
Regulatory Commission (18 C.F.R. Parts 292.101 to 292.602,
inclusive), nor shall those provisions apply to any other generation
units installed, operated, and maintained at a customer site
exclusively to serve that facility's load. For the purposes of this
subdivision, "replacement" of an existing facility includes, but is
not limited to, a comparable project at a location different than the
facility being replaced, if the board certifies that the new project
will result in the decommissioning of the existing facility.
( l ) Paragraph (4) of subdivision (a) and subdivisions
(c) to (j), inclusive, do not apply to licenses issued to "local
publicly owned electric utilities," as defined in Section 224.3 of
the Public Utilities Code, whose governing bodies certify to the
board that the project is needed to meet the projected native load of
the local publicly owned utility.
(m) To implement this section, the department and the California
Consumer Power and Conservation Financing Authority may, in
consultation with each other, adopt emergency regulations in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. For purposes of
that chapter, including, without limitation, Section 11349.6 of the
Government Code, the adoption of the regulations shall be considered
by the Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, or general
welfare.
SEC. 254. Section 25534.1 of the Public Resources Code is amended
to read:
25534.1. (a) The department may issue a complaint to any person
or entity on whom an administrative civil penalty may be imposed
pursuant to Section 25534. The complaint shall allege the act or
failure to act for which the civil penalty is proposed, the provision
of law authorizing civil liability, and the proposed civil penalty.
(b) The complaint shall be served by personal notice or certified
mail, and shall inform the party so served that a hearing will be
conducted within 60 days after the party has been served. The hearing
shall be before the board. The complainant may waive the right to a
hearing, in which case the board shall not conduct a hearing.
(c) After any hearing, the board may adopt, with or without
revision, the proposed decision and order of the department.
(d) Orders setting an administrative civil penalty shall become
effective and final upon issuance thereof, and any payment shall be
made within 30 days. Copies of these orders shall be served by
personal service or by registered mail upon the party served with the
complaint and upon other persons who appeared at the hearing and
requested a copy.
(e) In determining the amount of the administrative civil penalty,
the board shall take into consideration the nature, circumstance,
extent, and gravity of the violation or violations, whether the
violation is susceptible to removal or resolution, the cost to the
state in pursuing the enforcement action, and with respect to the
violator, the ability to pay, the effect on ability to continue in
business, any voluntary removal or resolution efforts undertaken, any
prior history of violations, the degree of culpability, economic
savings, if any, resulting from the violation, and such other matters
as justice may require.
SEC. 255. Section 25534.2 of the Public Resources Code is amended
to read:
25534.2. (a) Within 30 days after service of an order issued
under Section 25534.1, any aggrieved party may file with the superior
court a petition for writ of mandate for review thereof pursuant to
Section 1094.5 of the Code of Civil Procedure. If no aggrieved party
petition for a writ of mandate is filed within the time provided by
this section, an order of the board is not subject to review by any
court or agency, except that the board may grant review on its own
motion of an order issued under Section 25534.1 after the expiration
of the time limits set by this section.
(b) Upon request of the board, the Attorney General shall
institute an action in the appropriate superior court to collect and
recover any administrative civil penalties imposed pursuant to
Section 25534.1. The court shall accord priority on its calendar to
any action under this subdivision.
(c) Any moneys recovered by the board pursuant to this section
shall be deposited in the General Fund.
SEC. 256. Section 25537 of the Public Resources Code is amended to
read:
25537. Upon approval of an application by the board, the
department shall forward to the United States Nuclear Regulatory
Commission, the Environmental Protection Agency, and to other
appropriate federal agencies, the results of its studies including
the environmental impact report on the facility, the written decision
on the facility contained in the application, and the board's
determination of facility safety and reliability as provided in
Section 25511.
SEC. 257. Section 25538 of the Public Resources Code is amended to
read:
25538. Upon receiving the board's request for review under
subdivision (f) of Section 25519 and Section 25506, the local agency
may request a fee from the board to reimburse the local agency for
the actual and added costs of this review by the local agency. The
board shall reimburse the local agency for the added costs that shall
be actually incurred by the local agency in complying with the board'
s request. The local agency may also request reimbursement for permit
fees that the local agency would receive but for the operation of
Section 25500, provided, however, that these fees may only be
requested in accordance with actual services performed by the local
agency. The board shall either request a fee from the person
proposing the project or devote a special fund in its budget for the
reimbursement of these costs incurred by local agencies.
SEC. 258. Section 25539 of the Public Resources Code is amended to
read:
25539. In reviewing notices and applications for certification of
modifications of existing facilities, the board shall adopt rules
and regulations as necessary to ensure that relevant duties pursuant
to this division are carried out.
SEC. 259. Section 25540 of the Public Resources Code is amended to
read:
25540. If a person proposes to construct a geothermal powerplant
and related facility or facilities on a site, the board shall not
require three alternative sites and related facilities to be proposed
in the notice. Except as otherwise provided, the board shall issue
its findings on the notice, as specified in Section 25514, within
nine months from the date of filing of such notice, and shall issue
its final decision on the application, as specified in Section 25523,
within nine months from the date of the filing of the application
for certification, or at such later time as is mutually agreed to by
the board and the applicant or person submitting the notice or
application.
SEC. 260. Section 25540.1 of the Public Resources Code is amended
to read:
25540.1. The board shall determine, within 30 days after the
receipt of a notice or application for a geothermal powerplant,
whether the notice or application is complete. If the notice or
application is determined not to be complete, the board's
determination shall specify, in writing, those parts of the notice or
application which are incomplete and shall indicate the manner in
which it can be made complete. Within 30 days after receipt of the
applicant's filing with the board the additional information
requested by the board to make the notice or application complete,
the board shall determine whether the subsequent filing is sufficient
to complete the notice or application. A notice or application shall
be deemed filed for purposes of Section 25540 on the date the board
determines the notice or application is completed if the board has
adopted regulations specifying the informational requirements for a
complete notice or application, but if the board has not adopted
regulations, the notice or application shall be deemed filed on the
last date the board receives any additional data that completes the
notice or application.
SEC. 261. Section 25540.2 of the Public Resources Code is amended
to read:
25540.2. Notwithstanding any other law:
(a) If an applicant proposes to construct a geothermal powerplant
at a site that, at the outset of the proceeding, the applicant can
reasonably demonstrate to be capable of providing geothermal
resources in commercial quantities, a notice of intention pursuant to
Section 25502 shall not be required, and the board shall issue the
final decision on the application, as specified in Section 25523,
within 12 months after acceptance of the application for
certification of a geothermal powerplant and related facilities, or
at a later time that is mutually agreed upon by the board and the
applicant.
(b) Upon receipt of an application for certification of a
geothermal powerplant and related facilities, the department shall
transmit a copy of the application to every state and local agency
having jurisdiction over land use in the area involved.
SEC. 262. Section 25540.3 of the Public Resources Code is amended
to read:
25540.3. (a) An applicant for a geothermal powerplant may propose
a site to be approved that will accommodate a potential maximum
electric generating capacity in excess of the capacity being proposed
for initial construction. In addition to the information concerning
the initial powerplant and related facilities proposed for
construction required pursuant to Section 25520, the application
shall include all of the following, to the extent known:
(1) The number, type, and energy source of electric generating
units that the site is proposed ultimately to accommodate and the
maximum generating capacity for each unit.
(2) The projected installation schedule for each unit.
(3) The impact of the site, when fully developed, on the
environment and public health and safety.
(4) The amount and sources of cooling water needed at the fully
developed site.
(5) The general location and design of auxiliary facilities
planned for each stage of development, including, but not limited to,
pipelines, transmission lines, waste storage and disposal
facilities, switchyards, and cooling ponds, lakes, or towers.
(6) Other information relating to the design, operation, and
siting of the facility that the board may by regulation require.
(b) (1) If an application is filed pursuant to subdivision (a)
that proposes a site to be approved that will accommodate a potential
maximum electric generating capacity in excess of the capacity being
proposed for initial construction, the board may, in its decision
pursuant to subdivision (a) of Section 25540.3, either certify only
the initial facility or facilities proposed for initial construction
or may certify the initial facility or facilities and find the site
acceptable for additional generating capacity of the type tentatively
proposed. The maximum allowable amount and type of such additional
capacity shall be determined by the board.
(2) If the decision includes a finding that a particular site is
suitable to accommodate a particular additional generating capacity,
the site shall be designated a potential multiple facility site. The
board may, in determining the acceptability of a potential multiple
facility site, specify conditions or criteria necessary to ensure
that future additional facilities will not exceed the limitations of
the site.
SEC. 263. Section 25540.4 of the Public Resources Code is amended
to read:
25540.4. Notwithstanding any other law:
(a) The decision of the board on an application for an additional
facility at a potential multiple facility site shall be issued within
three months after the acceptance of the application or at a later
time that is mutually agreed upon by the board and the applicant.
(b) In reviewing an application for an additional facility at a
potential multiple facility site, the board may, upon a showing of
good cause, undertake a reconsideration of its prior determinations
in the final report for the site pursuant to Section 25514 or its
decision pursuant to Section 25523 based on current conditions and
other reasonable alternatives to the proposed facility. The
reconsideration must be completed within seven months after
acceptance of the application for an additional facility.
(c) The board shall, pursuant to Section 21100.2, provide by
resolution or order for completing and certifying the environmental
impact report within the time limits established by subdivisions (a)
and (b).
SEC. 264. Section 25540.5 of the Public Resources Code is amended
to read:
25540.5. The board may, at the petition of a county that has
adopted a geothermal element for its general plan, approve an
equivalent certification program that delegates to that county full
authority for the certification of all geothermal powerplants within
that county. Once approved by the board, the equivalent certification
program shall replace and supersede the procedures for certification
of all geothermal powerplants and related facilities, pursuant to
Sections 25540 to 25540.4, inclusive, to be located within that
county. The board may, after public hearings, revoke the approved
equivalent certification program of the county if the board finds
that the program does not comply with current board certification
requirements. The equivalent certification program shall include, but
not be limited to, provisions for all of the following:
(a) Certification of geothermal areas as potential multiple
facility sites, if so applied for.
(b) Processing of applications in less than 12 months.
(c) Periodic review and updating of the program by the county as
may be required by law and the board.
(d) Appeal procedures, including appeals to the board on
substantive issues. In any such appeal on a substantive issue, the
board shall determine whether the act or decision is supported by
substantial evidence in the light of the whole record. The board
shall determine, within 15 days of receipt of an appeal, whether the
appeal has merit and whether action should be taken.
(e) Input and review by other relevant public agencies and members
of the public.
(f) Public hearing procedures equivalent to those specified in
Article 6 (commencing with Section 65350) of Chapter 3 of Title 7 of
the Government Code.
SEC. 265. Section 25540.6 of the Public Resources Code is amended
to read:
25540.6. (a) Notwithstanding any other law, a notice of intention
is not required, and the board shall issue its final decision on the
application, as specified in Section 25523, within 12 months after
the filing of the application for certification of the powerplant and
related facility or facilities, or at any later time that is
mutually agreed upon by the board and the applicant, for any of the
following:
(1) A thermal powerplant that will employ cogeneration technology,
a thermal powerplant that will employ natural gas-fired technology,
or a solar thermal powerplant.
(2) A modification of an existing facility.
(3) A thermal powerplant which it is only technologically or
economically feasible to site at or near the energy source.
(4) A thermal powerplant with a generating capacity of up to 100
megawatts.
(5) A thermal powerplant designed to develop or demonstrate
technologies which have not previously been built or operated on a
commercial scale. The research, development, or commercial
demonstration project may include, but is not limited to, the use of
renewable or alternative fuels, improvements in energy conversion
efficiency, or the use of advanced pollution control systems. The
facility may not exceed 300 megawatts unless the board, by
regulation, authorizes a greater capacity. Section 25524 does not
apply to the powerplant and related facility or facilities.
(b) Projects exempted from the notice of intention requirement
pursuant to paragraph (1), (4), or (5) of subdivision (a) shall
include, in the application for certification, a discussion of the
applicant's site selection criteria, any alternative sites that the
applicant considered for the project, and the reasons why the
applicant chose the proposed site. That discussion shall not be
required for cogeneration projects at existing industrial sites. The
board may also accept an application for a noncogeneration project at
an existing industrial site without requiring a discussion of site
alternatives if the board finds that the project has a strong
relationship to the existing industrial site and that it is therefore
reasonable not to analyze alternative sites for the project.
SEC. 266. Section 25541 of the Public Resources Code is amended to
read:
25541. The board may exempt from this chapter thermal powerplants
with a generating capacity of up to 100 megawatts and modifications
to existing generating facilities that do not add capacity in excess
of 100 megawatts, if the board finds that no substantial adverse
impact on the environment or energy resources will result from the
construction or operation of the proposed facility or from the
modifications.
SEC. 267. Section 25541.5 of the Public Resources Code is amended
to read:
25541.5. (a) On or before January 1, 2001, the Secretary of the
Natural Resources Agency shall review the regulatory program
conducted pursuant to this chapter that was certified pursuant to
subdivision (j) of Section 15251 of Title 14 of the California Code
of Regulations, to determine whether the regulatory program meets the
criteria specified in Section 21080.5. If the Secretary of the
Natural Resources Agency determines that the regulatory program meets
those criteria, he or she shall continue the certification of the
regulatory program.
(b) If the Secretary of the Natural Resources Agency continues the
certification of the regulatory program, the board shall amend the
regulatory program from time to time, as necessary to permit the
Secretary of the Natural Resources Agency to continue to certify the
program.
(c) This section does not invalidate the certification of the
regulatory program, as it existed on January 1, 2000, pending the
review required by subdivision (a).
SEC. 268. Section 25542 of the Public Resources Code is amended to
read:
25542. In the case of any site and related facility or facilities
for which the provisions of this division do not apply, the
exclusive power given to the board pursuant to Section 25500 to
certify sites and related facilities shall not be in effect.
SEC. 269. Section 25543 of the Public Resources Code is amended to
read:
25543. (a) It is the intent of the Legislature to improve the
process of siting and licensing new thermal electric powerplants to
ensure that these facilities can be sited in a timely manner, while
protecting environmental quality and public participation in the
siting process.
(b) The department shall prepare a report to the Governor and the
Legislature on or before March 31, 2000, that identifies
administrative and statutory measures that, preserving environmental
protections and public participation, would improve the board's
siting and licensing process for thermal powerplants of 50 megawatts
and larger. The report shall include, but is not limited to, all of
the following:
(1) An examination of potential process efficiencies associated
with required hearings, site visits, and documents.
(2) A review of the impacts on both process efficiency and public
participation of restrictions on communications between applicants,
the public, and staff or decisionmakers.
(3) An assessment of means for improving coordination with the
licensing activities of local jurisdictions and participation by
other state agencies.
(4) An assessment of organizational structure issues including the
adequacy of the amounts and organization of current technical and
legal resources.
(5) Recommendations for administrative and statutory measures to
improve the board's siting and licensing process.
(c) The board may immediately implement any administrative
recommendations. Regulations, as identified in paragraph (5), adopted
within 180 days of the effective date of this section may be adopted
as emergency regulations in accordance with Chapter 3.5 (commencing
with Section 11340) of the Government Code. For purposes of that
chapter, including Section 11349.6 of the Government Code, the
adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
SEC. 270. Section 25601 of the Public Resources Code is amended to
read:
25601. The department shall develop and coordinate a program of
research and development in energy supply, consumption, and
conservation and the technology of siting facilities and shall give
priority to those forms of research and development that are of
particular importance to the state, including, but not limited to,
all of the following:
(a) Methods of energy conservation
specified in Chapter 5 (commencing with Section 25400).
(b) Increased energy use efficiencies of existing thermal electric
and hydroelectric powerplants and increased energy efficiencies in
designs of thermal electric and hydroelectric powerplants.
(c) Expansion and accelerated development of alternative sources
of energy, including geothermal and solar resources, including, but
not limited to, participation in large-scale demonstrations of
alternative energy systems sited in California in cooperation with
federal agencies, regional compacts, other state governments, and
other participants. For purposes of this subdivision, "participation"
shall be defined as any of the following: (1) direct interest in a
project, (2) research and development to ensure acceptable resolution
of environmental and other impacts of alternative energy systems,
(3) research and development to improve siting and permitting
methodology for alternative energy systems, (4) experiments utilizing
the alternative energy systems, and (5) research and development of
appropriate methods to ensure the widespread utilization of
economically useful alternative energy systems. Large-scale
demonstrations of alternative energy systems are exemplified by the
100KWe to 100MWe range demonstrations of solar, wind, and geothermal
systems contemplated by federal agencies, regional compacts, other
state governments, and other participants.
(d) Improved methods of construction, design, and operation of
facilities to protect against seismic hazards.
(e) Improved methods of energy-demand forecasting.
(f) To accomplish the purposes of subdivision (c), an amount not
more than one-half of the total state funds appropriated for the
solar energy research and development program as proposed in the
budget shall be allocated for large-scale demonstration of
alternative energy systems.
SEC. 271. Section 25602 of the Public Resources Code is amended to
read:
25602. The department shall carry out technical assessment
studies on all forms of energy and energy-related problems, in order
to influence federal research and development priorities and to be
informed on future energy options and their impacts, including, in
addition to those problems specified in Section 25601, but not
limited to, the following:
(a) Advanced nuclear powerplant concepts, fusion, and fuel cells.
(b) Total energy concepts.
(c) New technology related to coastal and offshore siting of
facilities.
(d) Expanded use of wastewater as cooling water and other advances
in powerplant cooling.
(e) Improved methods of power transmission to permit interstate
and interregional transfer and exchange of bulk electric power.
(f) Measures to reduce wasteful and inefficient uses of energy.
(g) Shifts in transportation modes and changes in transportation
technology in relation to implications for energy consumption.
(h) Methods of recycling, extraction, processing, fabricating,
handling, or disposing of materials, especially materials which
require large commitments of energy.
(i) Expanded recycling of materials and its effect on energy
consumption.
(j) Implications of government subsidies and taxation and
ratesetting policies.
(k) Utilization of waste heat.
( l ) Use of hydrogen as an energy form.
(m) Use of agricultural products, municipal wastes, and organic
refuse as an energy source.
These assessments may also be conducted in order to determine
which energy systems among competing technologies are most compatible
with standards established pursuant to this division.
SEC. 272. Section 25603 of the Public Resources Code is amended to
read:
25603. For research purposes, the department shall, in
cooperation with other state agencies, participate in the design,
construction, and operation of energy-conserving buildings using data
developed pursuant to Section 25401, in order to demonstrate the
economic and technical feasibility of those designs.
SEC. 273. Section 25603.5 of the Public Resources Code is
repealed.
SEC. 274. Section 25605 of the Public Resources Code is amended to
read:
25605. On or before November 1, 1978, the department, with the
approval by the board, shall develop and adopt, in cooperation with
affected industry and consumer representatives, and after one or more
public hearings, regulations governing solar devices. The
regulations shall be designed to encourage the development and use of
solar energy and to provide maximum information to the public
concerning solar devices. The regulations may include, but need not
be limited to, any or all of the following:
(a) Standards for testing, inspection, certification, sizing, and
installation of solar devices.
(b) Provisions for the enforcement of the standards. These
provisions may include any or all of the following:
(1) Procedures for the accreditation by the department of
laboratories to test and certify solar devices.
(2) Requirements for onsite inspection of solar devices, including
specifying methods for inspection, to determine compliance or
noncompliance with the standards.
(3) Requirements for submission to the department of any data
resulting from the testing and inspection of solar devices.
(4) Prohibitions on the sale of solar devices that do not meet
minimum requirements for safety and durability as established by the
board.
(5) Dissemination of the results of the testing, inspection, and
certification program to the public.
(c) In adopting the regulations, the department shall give due
consideration to their effect on the cost of purchasing, installing,
operating, and maintaining solar devices. The department, with the
approval of the board, shall reassess the regulations as often as it
deems necessary, based upon the value of the regulations in terms of
benefits and disadvantages to the widespread adoption of solar energy
systems and the need to encourage creativity and innovative
adaptations of solar energy. The department may amend or repeal these
regulations based on such reassessment.
(d) Under no circumstances may the department or the board
preclude any person from developing, installing, or operating a solar
device on his or her own property.
(e) Any violation of any regulation adopted by the board pursuant
to this section may be enjoined in the same manner as is prescribed
in Chapter 10 (commencing with Section 25900) of this division for
enjoining a violation of this division.
SEC. 275. Section 25605.5 of the Public Resources Code is amended
to read:
25605.5. Standards adopted by the board pursuant to Section
25605, which are building standards as defined in Section 25488.5,
shall be submitted to the State Building Standards Commission for
approval pursuant to, and are governed by, the State Building
Standards Law (Part 2.5 (commencing with Section 18901) of Division
13 of the Health and Safety Code). Building standards adopted by the
board and published in the State Building Standards Code shall comply
with, and be enforced as provided in, Section 25605.
SEC. 276. Section 25608 of the Public Resources Code is amended to
read:
25608. The department shall confer with officials of federal
agencies, including the National Aeronautics and Space
Administration, the National Institute of Standards and Technology,
the Department of Energy, and the Department of Housing and Urban
Development, to coordinate the adoption of regulations pursuant to
Sections 25603 and 25605.
SEC. 277. Section 25609 of the Public Resources Code is amended to
read:
25609. The board may, in adopting regulations pursuant to this
chapter, specify the date when the regulations shall take effect. The
board may specify different dates for different regulations.
SEC. 278. Section 25609.5 of the Public Resources Code is amended
to read:
25609.5. The effective dates of building standards adopted by the
board pursuant to Section 25609 are subject to approval pursuant to
the provisions of the State Building Standards Law, Part 2.5
(commencing with Section 18901) of Part 13 of the Health and Safety
Code.
SEC. 279. Section 25610 of the Public Resources Code is amended to
read:
25610. For purposes of carrying out the provisions of this
chapter, the department may contract with any person for materials
and services that cannot be performed by its staff or other state
agencies, and may apply for federal grants or any other funding.
SEC. 280. Section 25616 of the Public Resources Code is amended to
read:
25616. (a) It is the intent of the Legislature to encourage local
agencies to expeditiously review permit applications to site energy
projects, and to encourage energy project developers to consider all
cost-effective and environmentally superior alternatives that achieve
their project objectives.
(b) Subject to the availability of funds appropriated therefor,
the department shall provide technical assistance and grants-in-aid
to assist local agencies to do either or both of the following:
(1) Site energy production or transmission projects that are not
otherwise subject to Chapter 6 (commencing with Section 25500).
(2) Integrate into their planning processes, and incorporate into
their general plans, methods to achieve cost-effective energy
efficiency.
(c) The department shall provide assistance at the request of
local agencies.
(d) As used in this section, an energy project is any project
designed to produce, convert, or transmit energy as one of its
primary functions.
SEC. 281. Section 25617 of the Public Resources Code is amended to
read:
25617. (a) It is the intent of the Legislature to preserve
diversity of energy resources, including diversity of resources used
in electric generation facilities, industrial and commercial
applications, and transportation.
(b) The department shall, within the limits of available funds,
provide technical assistance and support for the development of
petroleum diesel fuels that are as clean or cleaner than alternative
clean fuels and clean diesel engines. That technical assistance and
support may include the creation of research, development, and
demonstration programs.
SEC. 282. Section 25618 of the Public Resources Code is amended to
read:
25618. (a) The department shall facilitate development and
commercialization of ultra low- and zero-emission electric vehicles
and advanced battery technologies, as well as development of an
infrastructure to support maintenance and fueling of those vehicles
in California. Facilitating commercialization of ultra low- and
zero-emission electric vehicles in California shall include, but not
be limited to, the following:
(1) The department may, in cooperation with county, regional, and
city governments, the state's public and private utilities, and the
private business sector, develop plans for accelerating the
introduction and use of ultra low- and zero-emission electric
vehicles throughout California's air quality nonattainment areas, and
for accelerating the development and implementation of the necessary
infrastructure to support the planned use of those vehicles in
California. These plans shall be consistent with, but not limited to,
the criteria for similar efforts contained in federal loan, grant,
or matching fund projects.
(2) In coordination with other state agencies, the department
shall seek to maximize the state's use of federal programs, loans,
and matching funds available to states for ultra low- and
zero-emission electric vehicle development and demonstration
programs, and infrastructure development projects.
(b) Priority for implementing demonstration projects under this
section shall be directed toward those areas of the state currently
in a nonattainment status with federal and state air quality
regulations.
SEC. 283. Section 25620 of the Public Resources Code is amended to
read:
25620. The Legislature hereby finds and declares all of the
following:
(a) It is in the best interests of the people of this state that
the quality of life of its citizens be improved by providing
environmentally sound, safe, reliable, and affordable energy services
and products.
(b) To improve the quality of life of this state's citizens, it is
proper and appropriate for the state to undertake public interest
energy research, development, and demonstration projects that are not
adequately provided for by competitive and regulated energy markets.
(c) Public interest energy research, demonstration, and
development projects should advance energy science or technologies of
value to California citizens and should be consistent with the
policies of this chapter.
(d) It is in the best interest of the people of California for the
board and the department to positively contribute to the overall
economic climate of the state within the roles and responsibilities
of the board and the department as defined by statute, regulation,
and other official government authority, including, but not limited
to, providing economic benefits to California-based entities.
SEC. 284. Section 25620.1 of the Public Resources Code is amended
to read:
25620.1. (a) The department shall develop, implement, and
administer the Public Interest Research, Development, and
Demonstration Program that is hereby created. The program shall
include a full range of research, development, and demonstration
activities that, as determined by the board, are not adequately
provided for by competitive and regulated markets. The department
shall administer the program consistent with the policies of this
chapter.
(b) The general goal of the program is to develop, and help bring
to market, energy technologies that provide increased environmental
benefits, greater system reliability, and lower system costs, and
that provide tangible benefits to electric utility customers through
the following investments:
(1) Advanced transportation technologies that reduce air pollution
and greenhouse gas emissions beyond applicable standards, and that
benefit electricity and natural gas ratepayers.
(2) Increased energy efficiency in buildings, appliances,
lighting, and other applications beyond applicable standards, and
that benefit electric utility customers.
(3) Advanced electricity generation technologies that exceed
applicable standards to increase reductions in greenhouse gas
emissions from electricity generation, and that benefit electric
utility customers.
(4) Advanced electricity technologies that reduce or eliminate
consumption of water or other finite resources, increase use of
renewable energy resources, or improve transmission or distribution
of electricity generated from renewable energy resources.
(c) To achieve the goals established in subdivision (b), the
department shall adopt a portfolio approach for the program that does
all of the following:
(1) Effectively balances the risks, benefits, and time horizons
for various activities and investments that will provide tangible
energy or environmental benefits for California electricity
customers.
(2) Emphasizes innovative energy supply and end use technologies,
focusing on their reliability, affordability, and environmental
attributes.
(3) Includes projects that have the potential to enhance
transmission and distribution capabilities.
(4) Includes projects that have the potential to enhance the
reliability, peaking power, and storage capabilities of renewable
energy.
(5) Demonstrates a balance of benefits to all sectors that
contribute to the funding under Section 399.8 of the Public Utilities
Code.
(6) Addresses key technical and scientific barriers.
(7) Demonstrates a balance between short-term, mid-term, and
long-term potential.
(8) Ensures that prior, current, and future research not be
unnecessarily duplicated.
(9) Provides for the future market utilization of projects funded
through the program.
(10) Ensures an open project selection process and encourages the
awarding of research funding for a diverse type of research as well
as a diverse award recipient base and equally considers research
proposals from the public and private sectors.
(11) Coordinates with other related research programs.
(d) The term "award," as used in this chapter, may include, but is
not limited to, contracts, grants, interagency agreements, loans,
and other financial agreements designed to fund public interest
research, demonstration, and development projects or programs.
SEC. 285. Section 25620.2 of the Public Resources Code is amended
to read:
25620.2. (a) To ensure the efficient implementation and
administration of the Public Interest Research, Development, and
Demonstration Program, the department shall do both of the following:
(1) Develop procedures for the solicitation of award applications
for project or program funding, and to ensure efficient program
management.
(2) Evaluate and select programs and projects, based on merit,
that will be funded under the program.
(b) The department shall recommend and the board shall adopt
regulations to implement the program, in accordance with the
following procedures:
(1) Prepare a preliminary text of the proposed regulation and
provide a copy of the preliminary text to any person requesting a
copy.
(2) Provide public notice of the proposed regulation to any person
who has requested notice of the regulations prepared by the
department. The notice shall contain all of the following:
(A) A clear overview explaining the proposed regulation.
(B) Instructions on how to obtain a copy of the proposed
regulations.
(C) A statement that if a public hearing is not scheduled for the
purpose of reviewing a proposed regulation, any person may request,
not later than 15 days prior to the close of the written comment
period, a public hearing conducted in accordance with board
procedures.
(3) Accept written public comments for 30 calendar days after
providing the notice required in paragraph (2).
(4) Certify that all written comments were read and considered by
the board.
(5) Place all written comments in a record that includes copies of
any written factual support used in developing the proposed
regulation, including written reports and copies of any transcripts
or minutes in connection with any public hearings on the adoption of
the regulation. The record shall be open to public inspection and
available to the courts.
(6) Provide public notice of any substantial revision of the
proposed regulation at least 15 days prior to the expiration of the
deadline for public comments and comment period using the procedures
provided in paragraph (2).
(7) Conduct public hearings before the board, if a hearing is
requested by an interested party, that shall be conducted in
accordance with board procedures.
(8) Adopt any proposed regulation at a regularly scheduled and
noticed meeting of the board. The regulation shall become effective
immediately unless otherwise provided by the board.
(9) Publish any adopted regulation in a manner that makes copies
of the regulation easily available to the public. Any adopted
regulation shall also be made available on the Internet. The
department shall transmit a copy of an adopted regulation to the
Office of Administrative Law for publication, or, if the board
determines that printing the regulation is impractical, an
appropriate reference as to where a copy of the regulation may be
obtained.
(10) Notwithstanding any other provision of law, this subdivision
provides an interim exception from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code for regulations required to implement Sections
25620.1 and 25620.2 that are adopted under the procedures specified
in this subdivision.
(11) This subdivision shall become inoperative on January 1, 2012,
unless a later enacted statute deletes or extends that date.
However, after January 1, 2012, the board is not required to repeat
any procedural step in adopting a regulation that has been completed
before January 1, 2012, using the procedures specified in this
subdivision.
SEC. 286. Section 25620.3 of the Public Resources Code is amended
to read:
25620.3. (a) The department, by action of the board, may,
consistent with the requirements of this chapter, provide awards to
any individual or entity for planning, implementation, and
administration of projects or programs selected pursuant to Section
25620.5.
(b) The department, by action of the board, may provide an award
to a project or program that includes a group of related projects, or
to a party who aggregates projects that directly benefit from the
award.
(c) The department, by action of the board, may establish
multiparty agreements. In a multiparty agreement, the department, by
action of the board, may be a signatory to a common agreement among
two or more parties. These agreements include, but are not limited
to, cofunding, leveraged research, collaborations, and membership
arrangements. If the department, by action of the board, enters into
these agreements, it shall be a party to these agreements and may
share in the roles, responsibilities, risks, investments, and
results.
(d) The department, by action of the board, may issue awards that
include the ability to make advance payments to prime contractors, to
enable them to make advance payments to a subcontractor that is a
federal agency, national laboratory, or state entity, on the
condition that the subcontract is binding and enforceable and
includes specific performance milestones.
(e) The department, by action of the board, may issue awards that
include the ability to assign tasks on a work authorization basis.
(f) Prior to making any award pursuant to this chapter for a
research, development, or demonstration program or project, the
department shall identify the expected costs and any qualitative or
quantitative benefits of the proposed program or project.
SEC. 287. Section 25620.4 of the Public Resources Code is amended
to read:
25620.4. (a) To the extent that intellectual property is
developed under this chapter, an equitable share of rights in the
intellectual property or in the benefits derived therefrom shall
accrue to the State of California.
(b) The department, by action of the board, may determine what
share, if any, of the intellectual property, or the benefits derived
therefrom, shall accrue to the state. The department may negotiate
sharing mechanisms for intellectual property or benefits with award
recipients.
SEC. 288. Section 25620.5 of the Public Resources Code is amended
to read:
25620.5. (a) The department may solicit applications for awards,
using a sealed competitive bid, competitive negotiation process,
department-issued intradepartmental master agreement, the methods for
selection of professional services firms set forth in Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the
Government Code, interagency agreement, single source, or sole source
method. When scoring teams are convened to review and score
proposals, the scoring teams may include persons not employed by the
department, as long as employees of the state constitute no less than
50 percent of the membership of the scoring team. A person
participating on a scoring team may not have any conflict of interest
with respect to the proposal before the scoring team.
(b) A sealed bid method may be used when goods and services to be
acquired can be described with sufficient specificity so that bids
can be evaluated against specifications and criteria set forth in the
solicitation for bids.
(c) The department may use a competitive negotiation process in
any of the following circumstances:
(1) Whenever the desired award is not for a fixed price.
(2) Whenever project specifications cannot be drafted in
sufficient detail so as to be applicable to a sealed competitive bid.
(3) Whenever there is a need to compare the different price,
quality, and structural factors of the bids submitted.
(4) Whenever there is a need to afford bidders an opportunity to
revise their proposals.
(5) Whenever oral or written discussions with bidders concerning
the technical and price aspects of their proposals will provide
better results to the state.
(6) Whenever the price of the award is not the determining factor.
(d) The department, by action of the board, may establish
interagency agreements.
(e) The department, by action of the board, may provide awards on
a single source basis by choosing from among two or more parties or
by soliciting multiple applications from parties capable of supplying
or providing similar goods or services. The cost to the state shall
be reasonable and the department may only enter into a single source
agreement with a particular party if the department, by action of the
board, determines that it is in the state's best interests.
(f) The department, by action of the board, in accordance with
subdivision (g) and in consultation with the Department of General
Services, may provide awards on a sole source basis when the cost to
the state is reasonable and the department, by action of the board,
makes any of the following determinations:
(1) The proposal was unsolicited and meets the evaluation criteria
of this chapter.
(2) The expertise, service, or product is unique.
(3) A competitive solicitation would frustrate obtaining necessary
information, goods, or services in a timely manner.
(4) The award funds the next phase of a multiphased proposal and
the existing agreement is being satisfactorily performed.
(5) When it is determined by the department to be in the best
interests of the state.
(g) The department may not use a sole source basis for an award
pursuant to subdivision (f), unless both of the following conditions
are met:
(1) The board, at least 60 days prior to taking an action pursuant
to subdivision (f), notifies the Joint Legislative Budget Committee
and the relevant policy committees in both houses of the Legislature,
in writing, of its intent to take the proposed action.
(2) The Joint Legislative Budget Committee either approves or does
not disapprove the proposed action within 60 days from the date of
notification required by paragraph (1).
(h) The department shall give priority to California-based
entities in making awards pursuant to this chapter.
(i) The provisions of this section are severable. If any provision
of this section or its application is held to be invalid, that
invalidity does not affect other provisions or applications that can
be given effect without the invalid provision or application.
For purposes of
this Section and Section 25620, "California-based entity" means
either of the following:
A corporation or other business form organized for the transaction
of business that has its headquarters in California and manufactures
in California the product that qualifies for the incentive or award,
or a corporation or other business form organized for the
transaction of business that has an office for the transaction of
business in California and substantially manufactures in California
the product that qualifies for the incentive or award, or
substantially develops within California the research that qualifies
for the incentive or award, as determined by the agency issuing the
incentive or award.
SEC. 289. Section 25620.6 of the Public Resources Code is amended
to read:
25620.6. The department, by action of the board and in
consultation with the Department of General Services, may purchase
insurance coverage necessary to implement an award. Funding for the
purchase of insurance may be made from money in the Public Interest
Research, Development, and Demonstration Fund created pursuant to
Section 384 of the Public Utilities Code.
SEC. 290. Section 25620.7 of the Public Resources Code is amended
to read:
25620.7. (a) The department, by action of the board, may contract
for, or through interagency agreement obtain, technical, scientific,
or administrative services or expertise from one or more entities,
to support the program. Funding for this purpose shall be made from
money in the Public Interest Research, Development, and Demonstration
Fund.
(b) The department, by action of the board, may select the
services or expertise described in subdivision (a), pursuant to
Section 25620.5. In the event that contracts or interagency
agreements have been made to multiple entities and their
subcontractors for similar purposes, the commission may select from
among those entities the particular expertise needed for a specified
type of work. Selection of the particular expertise may be based
solely on a review of qualifications, including the specific
expertise required, availability of the expertise, or access to a
resource of special relevance to the work, including, but not limited
to, a database, model, technical facility, or a collaborative or
institutional affiliation that will expedite the quality and
performance of the work.
SEC. 291. Section 25620.8 of the Public Resources Code is amended
to read:
25620.8. The department shall prepare and submit to the
Legislature an annual report that is approved by the board, not later
than March 31 of each year, on awards made pursuant to this chapter
and progress toward achieving the goals set forth in Section 25620.1.
The report shall include information on the names of award
recipients, the amount of awards, and the types of projects funded,
an evaluation of the success of funded projects, and recommendations
for improvements in the program. The report shall set forth the
actual costs of programs or projects funded by the department, the
results achieved, and how the actual costs and results compare to the
expected costs and benefits. The department shall establish
procedures for protecting confidential or proprietary information and
shall consult with all interested parties in the preparation of the
annual report.
SEC. 292. Section 25620.11 of the Public Resources Code is amended
to read:
25620.11. (a) The department shall regularly convene an advisory
committee that shall make recommendations to guide the department's
selection of programs and projects to be funded under this chapter.
The advisory committee shall include as appropriate, but not be
limited to, representatives from the Public Utilities Commission,
consumer organizations, environmental organizations, and electrical
corporations subject to the funding requirements of Section 381 of
the Public Utilities Code.
(b) Three members of the Senate, appointed by the Senate President
Pro Tempore, and three members of the Assembly, appointed by the
Speaker of the Assembly, may meet with the advisory committee and
participate in its activities to the extent that such participation
is not incompatible with their respective positions as Members of the
Legislature.
SEC. 293. Section 25630 of the Public Resources Code is amended to
read:
25630. (a) The department shall establish a small business energy
assistance low-interest revolving loan program to fund the purchase
of equipment for alternative technology energy projects for
California's small businesses.
(b) Loan repayments, interest, and royalties shall be deposited in
the Energy Technologies Research, Development, and Demonstration
Account. The interest rate shall be based on surveys of existing
financial markets and at rates not lower than the Pooled Money
Investment Account.
SEC. 294. Section 25650 of the Public Resources Code is amended to
read:
25650. (a) All funds from loan repayments and interest that
become due and payable for loans made by the department pursuant to
an agriculture energy assistance program shall be deposited in the
Energy Technologies Research, Development, and Demonstration Account,
and shall be available for loans and technical assistance pursuant
to this section, upon appropriation in the Budget Act. Up to 20
percent of the annual appropriation may be available for technical
assistance.
(b) Loans made pursuant to this section shall be for the purchase
of equipment and services for agriculture energy efficiency and
development demonstration projects, including, but not limited to,
production of methane or ethanol, use of wind, photovoltaics, and
other sources of energy for irrigation pumping, application of load
management conservation techniques, improvements in water pumping and
pressurization techniques, and conservation tillage techniques.
(c) The loans shall contain terms that provide for a repayment
period of not more than seven years and for interest at a rate that
is not less than 2 percent below the rate earned by moneys in the
Pooled Money Investment Account.
SEC. 295. Section 25678 of the Public Resources Code is amended to
read:
25678. The department, by action of the board, shall establish a
grant program which provides a forty cent ($0.40) per gallon
production incentive for liquid fuels fermented in this state from
biomass and biomass-derived resources produced in this state.
Eligible liquid fuels include, but are not limited to, ethanol,
methanol, and vegetable oils. Eligible biomass resources include, but
are not limited to, agricultural products and byproducts, forestry
products and byproducts, and industrial wastes. The board shall adopt
rules and regulations necessary to implement the program. Prior to
determining an applicant eligible for participation in the production
incentive program, the board shall find, among other things, that
the production techniques employed will lead to a net increase in the
amount of energy available for consumption.
SEC. 296. Section 25679 of the Public Resources Code is amended to
read:
25679. Applicants for a grant under this chapter shall submit an
application on a form prescribed by the department that is
responsible for administration of the program.
SEC. 297. Section 25696 of the Public Resources Code is amended to
read:
25696. The department may assist California-based energy
technology and energy conservation firms to export their
technologies, products, and services to international markets.
The department may do all of the following:
(a) Conduct a technical assistance program to help California
energy companies improve export opportunities and enhance foreign
buyers' awareness of and access to energy technologies and services
offered by California-based companies. Technical assistance
activities may include, but are not limited to, an energy technology
export information clearinghouse, a referral service, a trade lead
service consulting services for financing, market evaluation, and
legal counseling, and information seminars.
(b) Perform research studies and solicit technical advice to
identify international market opportunities.
(c) Assist California energy companies to evaluate project or
site-specific energy needs of international markets.
(d) Assist California energy companies to identify and address
international trade barriers restricting energy technology exports,
including unfair trade practices and discriminatory trade laws.
(e) Develop promotional materials in conjunction with California
energy companies to expand energy technology exports.
(f) Establish technical exchange programs to increase foreign
buyers' awareness of suitable energy technology uses.
(g) Prepare equipment performance information to enhance potential
export opportunities.
(h) Coordinate activities with state, federal, and international
donor agencies to take advantage of trade promotion and financial
assistance efforts offered.
SEC. 298. Section 25696.5 of the Public Resources Code is amended
to read:
25696.5. (a) Every California-based energy technology and energy
conservation firm awarded direct financial assistance pursuant to
Section 25696 shall reimburse the department for that assistance,
when both of the following conditions have been met:
(1) The assistance was substantial and essential for the
completion of a specific identifiable project.
(2) The resulting project is producing revenues.
(b) All moneys appropriated for purposes of this chapter and all
moneys received by the department as reimbursement under this section
shall be deposited in the Energy Resources Programs Account and
shall be available, when appropriated by the Legislature, for the
purposes of this chapter.
SEC. 299. Section 25697 of the Public Resources Code is amended to
read:
25697. The department shall consult with the California State
World Trade Commission with respect to conducting overseas trade
missions, trade shows, and trade exhibits. Consultation may include
interagency agreements, cosponsorship, and memoranda of understanding
for joint overseas trade activities.
SEC. 300. Section 25700 of the Public Resources Code is amended to
read:
25700. The department shall, in accordance with the provisions of
this chapter, develop contingency plans to deal with possible
shortages of electrical energy or fuel supplies to protect public
health, safety, and welfare.
SEC. 301. Section 25701 of the Public Resources Code is amended to
read:
25701. (a) Within six months after the effective date of this
division, each electric utility, gas utility, and fuel wholesaler or
manufacturer in the state shall prepare and submit to the department
a proposed emergency load curtailment plan or emergency energy supply
distribution plan setting forth proposals for identifying priority
loads or users in the event of a sudden and serious shortage of fuels
or interruption in the generation of electricity.
(b) The department shall encourage electric utilities to cooperate
in joint preparation of an emergency load curtailment plan or
emergency energy supply distribution plan. If this cooperative plan
is developed between two or more electric utilities, the utilities
may submit the joint plans to the department in place of individual
plans required by subdivision (a) of this section.
(c) The department shall collect from all relevant governmental
agencies, including, but not limited to, the Public Utilities
Commission and the Office of Emergency Services, any existing
contingency plans for dealing with sudden energy shortages or
information related thereto.
SEC. 302. Section 25702 of the Public Resources Code is amended to
read:
25702. The department shall, after one or more public hearings,
review the emergency load curtailment program plans or emergency
energy supply distribution plans submitted pursuant to Section 25701,
and, on or before January 6, 1975, the department shall approve and
recommend to the Governor and the Legislature plans for emergency
load curtailment and energy supply distribution in the event of a
sudden energy shortage. Those plans shall be based upon the plans
presented by the electric utilities, gas utilities, and fuel
wholesalers or manufacturers, information provided by other
governmental agencies, independent analysis and study by the
department and information provided at the hearing or hearings. Those
plans shall provide for the provision of essential services, the
protection of public health, safety, and welfare, and the maintenance
of a sound basic state economy. Provision shall be made in such
plans to eliminate wasteful, uneconomic, and unnecessary uses of
energy in times of shortages and to differentiate curtailment of
energy consumption by users on the basis of ability to accommodate
such curtailments. Those plans shall also specify the authority of
and recommend the appropriate actions of state and local governmental
agencies in dealing with energy shortages.
SEC. 303. Section 25703 of the Public Resources Code is amended to
read:
25703. Within four months after the date of certification of any
new facility, the department shall review and revise the recommended
plans based on additional new capacity attributed to that facility.
The department shall, after one or more public hearings, review the
plans at least every five years from the approval of the initial plan
as specified in Section 25702.
SEC. 304. Section 25704 of the Public Resources Code is amended to
read:
25704. The department shall carry out studies to determine if
potential serious shortages of electrical, natural gas, or other
sources of energy are likely to occur and shall make recommendations
to the Governor and the Legislature concerning administrative and
legislative actions required to avert possible energy supply
emergencies or serious fuel shortages, including, but not limited to,
energy conservation and energy development measures, to grant
authority to specific governmental agencies or officers to take
actions in the event of a sudden energy shortage, and to clarify and
coordinate existing responsibilities for energy emergency actions.
SEC. 305. Section 25705 of the Public Resources Code is amended to
read:
25705. (a) If the department determines that all reasonable
conservation, allocation, and service restriction measures may not
alleviate an energy supply emergency, and upon a declaration by the
Governor or by an act of the Legislature that a threat to public
health, safety, and welfare exists and requires immediate action, the
department shall authorize the construction and use of generating
facilities under terms and conditions as specified by the department
to protect the public interest.
(b) Within 60 days after the authorization of construction and
use of the generating facilities, the department shall issue a report
detailing the full nature, extent, and estimated duration of the
emergency situation and making recommendations to the Governor and
the Legislature for further energy conservation and energy supply
measures to alleviate the emergency situation as alternatives to use
of the generating facilities.
SEC. 306. Section 25720 of the Public Resources Code is amended to
read:
25720. (a) By January 31, 2002, the department shall examine the
feasibility, including possible costs and benefits to consumers and
impacts on fuel prices for the general public, of operating a
strategic fuel reserve to insulate California consumers and
businesses from substantial short-term price increases arising from
refinery outages and other similar supply interruptions. In
evaluating the potential operation of a strategic fuel reserve, the
department shall consult with other state agencies, including, but
not limited to, the State Air Resources Board.
(b) The department shall examine and recommend an appropriate
level of reserves of fuel, but in no event may the reserve be less
than the amount of refined fuel that the department estimates could
be produced by the largest California refiner over a two week period.
In making this examination and recommendation, the department shall
take into account all of the following:
(1) Inventories of California-quality fuels or fuel components
reasonably available to the California market.
(2) Current and historic levels of inventory of fuels.
(3) The availability and cost of storage of fuels.
(4) The potential for future supply interruptions, price spikes,
and the costs thereof to California consumers and businesses.
(c) The department shall evaluate a mechanism to release fuel from
the reserve that permits any customer to contract at any time for
the delivery of fuel from the reserve in exchange for an equal amount
of fuel that meets California specifications and is produced from a
source outside of California that the customer agrees to deliver back
to the reserve within a time period to be established by the
department, but not longer than six weeks.
(d) The department shall evaluate reserve storage space from
existing facilities.
(e) The department shall evaluate a reserve operated by an
independent operator that specializes in purchasing and storing fuel,
and is selected through competitive bidding.
(f) (1) Not later than January 31, 2002, the department and the
State Air Resources Board, in consultation with the other state and
local agencies the department deems necessary, shall develop and
adopt recommendations for the Governor and the Legislature on a
California Strategy to Reduce Petroleum Dependence.
(2) The strategy shall include a base case forecast by the
department of gasoline, diesel, and petroleum consumption in years
2010 and 2020 based on current best estimates of economic and
population growth, petroleum base fuel supply and availability,
vehicle efficiency, and utilization of alternative fuels and advanced
transportation technologies.
(3) The strategy shall include recommended statewide goals for
reductions in the rate of growth of gasoline and diesel fuel
consumption and increased transportation energy efficiency and
utilization of nonpetroleum based fuels and advanced transportation
technologies, including alternative fueled vehicles, hybrid vehicles,
and high fuel efficiency vehicles.
(g) The studies required by this section shall be conducted in
conjunction with any other studies required by acts enacted during
the 2000 portion of the 1999-2000 Regular Session dealing with
gasoline prices.
SEC. 307. Section 25721 of the Public Resources Code is amended to
read:
25721. The department shall report its findings and
recommendations for the purposes of Section 25720 to the Governor,
the Legislature, and the Attorney General by January 31, 2002. If the
department finds that it would be feasible to operate a strategic
gas reserve to insulate California consumers and businesses from
substantial, short-term price increases arising from refinery outages
or other similar supply interruptions, the department shall request
specific statutory authority and funding for establishment of a
reserve.
SEC. 308. Section 25722 of the Public Resources Code is amended to
read:
25722. (a) On or before January 31, 2003, the department, the
Department of General Services, and the State Air Resources Board, in
consultation with any other state agency that the department, the
Department of General Services, and the state board deem necessary,
shall develop and adopt fuel-efficiency specifications governing the
purchase by the state of motor vehicles and replacement tires that,
on an annual basis, will reduce petroleum consumption of the state
vehicle fleet to the maximum extent practicable and cost-effective.
(b) In developing the specifications, the department and the
Department of General Services shall jointly conduct a study to
examine state vehicle purchasing patterns, including the purchase of
after market tires, and to analyze the costs and benefits of reducing
the energy consumption of the state vehicle fleet by no less than 10
percent on or before January 1, 2005.
(c) The study shall include an analysis of all of the following
topics:
(1) Use of alternative fuels.
(2) Use of fuel-efficient vehicles.
(3) Costs and benefits of decreasing the size of the state vehicle
fleet.
(4) Reduction in vehicle trips and increase in use of alternative
means of transportation.
(5) Improved vehicle maintenance.
(6) Costs and benefits of using fuel-efficient tires relative to
using retreaded tires, as described in the Retreaded Tire Program
(Chapter 7 (commencing with Section 42400) of Part 3 of Division 30).
(7) The costs and benefits of purchasing high fuel efficiency
gasoline vehicles, including hybrid electric vehicles, instead of
flexible fuel vehicles.
(d) On or before January 31, 2003, and annually thereafter, the
department, the Department of General Services, and the State Air
Resources Board, in consultation with any other state agency that the
department, the Department of General Services, and the state board
deem necessary, shall develop and adopt air pollution emission
specifications governing the purchase by the state of passenger cars
and light-duty trucks that meet or exceed California's Ultra-Low
Emission Vehicle (ULEV) standards for exhaust emissions (13 Cal. Code
Regs. 1960.1).
(e) If the study described in subdivision (b) determines that
lower cost measures exist that deliver petroleum reductions
equivalent to applicable federal requirements governing the state
purchase of passenger cars and light-duty trucks, the state shall
pursue a waiver from those federal requirements.
SEC. 309. Section 25722.5 of the Public Resources Code is amended
to read:
25722.5. (a) In order to achieve the policy objectives set forth
in Sections 25000.5 and 25722, the Department of General Services, in
consultation with the department and the State Air Resources Board,
shall develop and adopt specifications and standards for all
passenger cars and light-duty trucks that are purchased or leased on
behalf of, or by, state offices, agencies, and departments. An
authorized emergency vehicle, as defined in Section 165 of the
Vehicle Code, that is equipped with emergency lamps or lights
described in Section 25252 of the Vehicle Code is exempt from the
requirements of this section. The specifications and standards shall
include the following:
(1) Minimum air pollution emission specifications that meet or
exceed California's Ultra-Low Emission Vehicle II (ULEV II) standards
for exhaust emissions (13 Cal. Code Regs. 1961). These
specifications shall apply on January 1, 2006, for passenger cars and
on January 1, 2010, for light-duty trucks.
(2) Notwithstanding any other provision of law, the utilization of
procurement policies that enable the Department of General Services
to do all of the following:
(A) Evaluate and score emissions, fuel costs, and fuel economy in
addition to capital cost to enable the Department of General Services
to choose the vehicle with the lowest life-cycle cost when awarding
a state vehicle procurement contract.
(B) Maximize the purchase or lease of hybrid or "Best in Class"
vehicles that are substantially more fuel efficient than the class
average.
(C) Maximize the purchase or lease of available vehicles that meet
or exceed California's Super Ultra-Low Emission Vehicle (SULEV)
passenger car standards for exhaust emissions.
(D) Maximize the purchase or lease of alternative fuel vehicles.
(3) In order to discourage the unnecessary purchase or leasing of
a sport utility vehicle and a four-wheel drive truck, a requirement
that each state office, agency, or department seeking to purchase or
lease that vehicle, demonstrate to the satisfaction of the Director
of General Services or to the entity that purchases or leases
vehicles for that office, agency, or department, that the vehicle is
required to perform an essential function of the office, agency, or
department. If it is so demonstrated, priority consideration shall be
given to the purchase or lease of an alternative fuel or hybrid
sports utility vehicle or four-wheel drive vehicle.
(b) The specifications and standards developed and adopted
pursuant to subdivision (a) do not apply upon the development and
implementation of the method, criteria, and procedure described in
Section 25722.6.
(c) Each state office, agency, and department shall review its
vehicle fleet and, upon finding that it is fiscally prudent, cost
effective, or otherwise in the public interest to do so, shall
dispose of nonessential sport utility vehicles and four-wheel drive
trucks in its fleet and replace these vehicles with more
fuel-efficient passenger cars and trucks.
(d) To the maximum extent practicable, each state office, agency,
and department that has bifuel natural gas, bifuel propane, and flex
fuel vehicles in its vehicle fleet shall use the respective
alternative fuel in those vehicles.
(e) The Director of General Services shall compile annually and
maintain information on the nature of vehicles that are owned or
leased by the state, including, but not limited to, all of the
following:
(1) The number of passenger-type motor vehicles purchased or
leased during the year, and the number owned or leased as of December
31 of each year.
(2) The number of sport utility vehicles and four-wheel drive
trucks purchased or leased by the state during the year, and the
number owned or leased as of December 31 of each year.
(3) The number of alternatively fueled vehicles and hybrid
vehicles purchased or leased by the state during the year, and the
total number owned or leased as of December 31 of each year and their
location.
(4) The locations of the alternative fuel pumps available for
those vehicles.
(5) The justification provided for all sport utility vehicles and
four-wheel drive trucks purchased or leased by the state and the
specific office, department, or agency responsible for the purchase
or lease.
(6) The number of sport utility vehicles and four-wheel drive
trucks purchased or leased by the state during the year, and the
number owned or leased as of December 31 of each year that are
alternative fuel or hybrid vehicles.
(7) The number of light-duty trucks disposed of under subdivision
(c).
(8) The total dollars spent by the state on passenger-type vehicle
purchases and leases, categorized by sport utility vehicle and
nonsport utility vehicle, and within each of those categories, by
alternative fuel, hybrid, and other.
(9) The total annual consumption of gasoline and diesel fuel used
by the state fleet.
(10) The total annual
consumption of alternative fuels.
(11) On December 31, 2009, and annually thereafter, the Director
of General Services shall also compile the total annual vehicle miles
traveled by vehicles in the state fleet.
(f) Each state office, agency, and department shall cooperate with
the Department of General Services' data requests in order that the
department may compile and maintain the information required in
subdivision (e).
(g) As soon as practicable, but no later than 12 months after
receiving the data, the information compiled and maintained under
subdivision (e) and a list of those state offices, agencies, and
departments that are not in compliance with subdivision (f) shall be
made available to the public on the Department of General Services'
Internet Web site.
(h) Beginning July 1, 2009, and every three years thereafter, the
Director of General Services shall report to the Legislature and the
Governor the information compiled and maintained pursuant to
subdivision (e).
(i) Pursuant to Article IX of the California Constitution, this
section shall not apply to the University of California except to the
extent that the Regents of the University of California, by
appropriate resolution, make this section applicable.
SEC. 310. Section 25722.6 of the Public Resources Code is amended
to read:
25722.6. (a) On or before December 31, 2008, the Department of
General Services, in conjunction with the State Air Resources Board
and the department, shall amend the existing "Enhanced Efficiency
Costing Methodology for Passenger Cars and Light-Duty Vehicles" to
rank the environmental and energy benefits, and costs of motor
vehicles for potential procurement by state and local governments.
The vehicle rankings shall include both of the following criteria:
(1) The reduction in greenhouse gas emissions, air pollutant
emissions, and petroleum use on a full fuel-cycle basis, to the
extent possible, based on existing data available to the State Air
Resources Board, the department, or other reliable sources, including
the California Strategy to Reduce Petroleum Dependence developed
pursuant to subdivision (f) of Section 25720 and the state plan to
increase the use of alternative transportation fuels developed
pursuant to Section 43866 of the Health and Safety Code.
(2) The life-cycle costs of the vehicle and fuel, including
maintenance.
(b) On or before December 31, 2008, the Department of General
Services shall revise its procedures for the procurement of state and
local government vehicles based upon the necessary performance
specifications of the vehicles to perform the required work or tasks
of the vehicles in the fleet. The Department of General Services
shall establish vehicle "classes" depending upon the required work or
tasks and the necessary performance specifications.
(c) On or before July 1, 2009, for the purpose of state fleet
procurement, both of the following shall apply:
(1) Available vehicles in individual classes shall be ranked for
purchase or lease using the method and criteria developed in
subdivision (a).
(2) (A) Vehicles shall be procured for use in the state fleet that
meet all requirements established by the federal government,
including, but not limited to, the federal Energy Policy Act of 1992,
Public Law 102-486, if applicable, and that have been ranked best in
their class as determined by the evaluation in subdivision (a).
(B) If fueling infrastructure, for the fuel used to rank a vehicle
best in class, is not available, or planned to be available within
two years, the Department of General Services shall procure the
vehicle ranked next best in class for which fueling infrastructure is
or will be available.
(d) The Department of General Services shall evaluate vehicles for
potential addition to the state and local fleets, as described in
this section, on an annual basis, reflecting annual new vehicle
availability.
(e) A vehicle capable of using alternative fuels shall be operated
on those fuels to the maximum extent practicable unless alternative
fuels are not readily available or other factors exist that may
prevent the use of those fuels in the area in which the vehicle is
used.
(f) The Department of General Services shall do both of the
following:
(1) During the normal course of coordination and contracting with
nearby fueling stations, provide information related to the
alternative fuel vehicles in the state fleet and request the stations
to provide a fuel supply to meet that demand.
(2) When replacing, retrofitting, or installing a fueling tank or
infrastructure at a facility that fuels state vehicles, the
Department of General Services shall consider requesting competitive
bids for alternative fuel infrastructure that would meet the needs of
vehicles used, or planned to be used, in that facility.
(g) Authorized emergency vehicles as defined in Section 165 of the
Vehicle Code, that are equipped with emergency lamps or lights
described in Section 25252 of the Vehicle Code, are exempt from the
requirements of this section.
(h) Each state office, agency, or department seeking to purchase
or lease a sport utility vehicle or four-wheel drive vehicle shall
demonstrate to the satisfaction of the Director of General Services
or the entity that purchases or leases vehicles that the vehicle is
required to perform an essential function of the office, agency, or
department. If it is so demonstrated, priority consideration shall be
given to the purchase or lease of an alternative fuel or hybrid
sports utility vehicle or four-wheel drive vehicle.
(i) Pursuant to Article IX of the California Constitution, this
section shall not apply to the University of California except to the
extent that the Regents of the University of California, by
appropriate resolution, make this section applicable.
SEC. 311. Section 25722.7 of the Public Resources Code is amended
to read:
25722.7. (a) In order to further achieve the policy objectives
set forth in Sections 25000.5, 25722, and 25722.5, on or before June
1, 2007, the Department of General Services in consultation with the
Department of Energy shall establish a minimum fuel economy standard
that is above the standard, as it exists on January 1, 2007,
established pursuant to Section 3620.1 of the State Administrative
Manual, for the purchase of passenger vehicles and light-duty trucks
for the state fleet that are powered solely by internal combustion
engines utilizing fossil fuels.
(b) On or after January 1, 2008, all new state fleet purchases of
passenger vehicles and light-duty trucks powered solely by internal
combustion engines utilizing fossil fuels, by the Department of
General Services and any other state entities shall meet the fuel
economy standard established under subdivision (a).
(c) Authorized emergency vehicles, as defined in Section 165 of
the Vehicle Code, and vehicles identified in paragraph (3) of
subdivision (a) of Section 25722.5 are exempt from this section.
(d) Vehicles purchased, that are modified for the following
purposes, are exempt from this section.
(1) To provide services by a state entity to an individual with a
disability or a developmental disability, as defined under the
statutes or regulations governing that state entity.
(2) As a reasonable accommodation for the known physical or mental
disability, as defined in Section 12926 of the Government Code, of
an employee.
(e) For purposes of this section, "state entities" includes all
state departments, boards, commissions, programs, and other
organizational units of the executive, legislative, and judicial
branches of state government, the California Community Colleges, the
California State University, and the University of California.
(f) This section shall not apply to the University of California
except to the extent that the Regents of the University of
California, by appropriate resolution, make that provision
applicable.
SEC. 312. Section 25723 of the Public Resources Code is amended to
read:
25723. On or before January 31, 2003, the department, in
consultation with any other state agency that the department deems
necessary, shall develop and adopt recommendations for consideration
by the Governor and the Legislature of a California State
Fuel-Efficient Tire Program. The department shall make
recommendations on all of the following items:
(a) Establishing a test procedure for measuring tire fuel
efficiency.
(b) Development of a database of fuel efficiency of existing tires
in order to establish an accurate baseline of tire efficiency.
(c) A rating system for tires that provides consumers with
information on the fuel efficiency of individual tire models.
(d) A consumer-friendly system to disseminate tire fuel-efficiency
information as broadly as possible. The department shall consider
labeling, Internet Web site listing, printed fuel economy guide
booklets, and mandatory requirements for tire retailers to provide
fuel-efficiency information.
(e) A study to determine the safety implications, if any, of
different policies to promote fuel efficient replacement tires in the
consumer market.
(f) A mandatory fuel-efficiency standard for all after market
tires sold in California.
(g) Consumer incentive programs that would offer a rebate to
purchasers of replacement tires that are more fuel efficient than the
average replacement tire.
SEC. 313. Section 25740.5 of the Public Resources Code is amended
to read:
25740.5. (a) The department, by action of the board, shall
optimize public investment and ensure that the most cost-effective
and efficient investments in renewable energy resources are
vigorously pursued.
(b) The department's long-term goal shall be a fully competitive
and self-sustaining supply of electricity generated from renewable
sources.
(c) The program objective shall be to increase, in the near term,
the quantity of California's electricity generated by in-state
renewable electricity generation facilities, while protecting system
reliability, fostering resource diversity, and obtaining the greatest
environmental benefits for California residents.
(d) An additional objective of the program shall be to identify
and support emerging renewable technologies in distributed generation
applications that have the greatest near-term commercial promise and
that merit targeted assistance.
(e) The Legislature recommends allocations among all of the
following:
(1) Rebates, buydowns, or equivalent incentives for emerging
renewable technologies.
(2) Customer education.
(3) Production incentives for reducing fuel costs, that are
confirmed to the satisfaction of the department, at solid fuel
biomass energy facilities in order to provide demonstrable
environmental and public benefits, including improved air quality.
(4) Solar thermal generating resources that enhance the
environmental value or reliability of the electrical system and that
require financial assistance to remain economically viable, as
determined by the department, by action of the board. The department,
by action of the board, may require financial disclosure from
applicants for purposes of this paragraph.
(5) Specified fuel cell technologies, if the department makes all
of the following findings:
(A) The specified technologies have similar or better air
pollutant characteristics than renewable technologies in the report
made pursuant to Section 25748.
(B) The specified technologies require financial assistance to
become commercially viable by reference to wholesale generation
prices.
(C) The specified technologies could contribute significantly to
the infrastructure development or other innovation required to meet
the long-term objective of a self-sustaining, competitive supply of
electricity generated from renewable sources.
(6) Existing wind-generating resources, if the department, by
action of the board, finds that the existing wind-generating
resources are a cost-effective source of reliable energy and
environmental benefits compared with other in-state renewable
electricity generation facilities, and that the existing
wind-generating resources require financial assistance to remain
economically viable. The department may require financial disclosure
from applicants for the purposes of this paragraph.
(f) Notwithstanding any other provision of law, moneys collected
for renewable energy pursuant to Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities
Code shall be transferred to the Renewable Resource Trust Fund.
Moneys collected between January 1, 2007, and January 1, 2012, shall
be used for the purposes specified in this chapter.
SEC. 314. Section 25741 of the Public Resources Code is amended to
read:
25741. As used in this chapter, the following terms have the
following meanings:
(a) "Delivered" and "delivery" mean the electricity output of an
in-state renewable electricity generation facility that is used to
serve end-use retail customers located within the state. Subject to
verification by the accounting system established by the department
pursuant to subdivision (b) of Section 399.13 of the Public Utilities
Code, electricity shall be deemed delivered if it is either
generated at a location within the state, or is scheduled for
consumption by California end-use retail customers. Subject to
criteria adopted by the department, electricity generated by an
eligible renewable energy resource may be considered "delivered"
regardless of whether the electricity is generated at a different
time from consumption by a California end-use customer.
(b) "In-state renewable electricity generation facility" means a
facility that meets all of the following criteria:
(1) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
(2) The facility satisfies one of the following requirements:
(A) The facility is located in the state or near the border of the
state with the first point of connection to the transmission network
within this state and electricity produced by the facility is
delivered to an in-state location.
(B) The facility has its first point of interconnection to the
transmission network outside the state and satisfies all of the
following requirements:
(i) It is connected to the transmission network within the Western
Electricity Coordinating Council (WECC) service territory.
(ii) It commences initial commercial operation after January 1,
2005.
(iii) Electricity produced by the facility is delivered to an
in-state location.
(iv) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
(v) If the facility is outside of the United States, it is
developed and operated in a manner that is as protective of the
environment as a similar facility located in the state.
(vi) It participates in the accounting system to verify compliance
with the renewables portfolio standard by retail sellers, once
established by the Department of Energy pursuant to subdivision (b)
of Section 399.13 of the Public Utilities Code.
(C) The facility meets the requirements of clauses (i), (iii),
(iv), (v), and (vi) in subparagraph (B), but does not meet the
requirements of clause (ii) because it commences initial operation
prior to January 1, 2005, if the facility satisfies either of the
following requirements:
(i) The electricity is from incremental generation resulting from
expansion or repowering of the facility.
(ii) The facility has been part of the existing baseline of
eligible renewable energy resources of a retail seller established
pursuant to paragraph (2) of subdivision (b) of Section 399.15 of the
Public Utilities Code or has been part of the existing baseline of
eligible renewable energy resources of a local publicly owned
electric utility established pursuant to Section 387 of the Public
Utilities Code.
(3) For the purposes of this subdivision, "solid waste conversion"
means a technology that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:
(A) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
(B) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.
(C) The technology produces no discharges to surface waters or
groundwaters of the state.
(D) The technology produces no hazardous wastes.
(E) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
(F) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
(G) The technology meets any other conditions established by the
department.
(H) The facility certifies that any local agency sending solid
waste to the facility diverted at least 30 percent of all solid waste
it collects through solid waste reduction, recycling, and
composting. For purposes of this paragraph, "local agency" means any
city, county, or special district, or subdivision thereof, which is
authorized to provide solid waste handling services.
(c) "Procurement entity" means any person or corporation that
enters into an agreement with a retail seller to procure eligible
renewable energy resources pursuant to subdivision (f) of Section
399.14 of the Public Utilities Code.
(d) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge authorized to be collected
and to be transferred to the Renewable Resource Trust Fund pursuant
to the Reliable Electric Service Investments Act (Article 15
(commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code).
(e) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
former State Energy Resources Conservation and Development
Commission.
(f) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code.
SEC. 315. Section 25742 of the Public Resources Code is amended to
read:
25742. (a) Twenty percent of the funds collected pursuant to the
renewable energy public goods charge shall be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2007-2011 investment cycle. Eligibility for production
incentives under this section shall be limited to those technologies
found eligible for funds by the department pursuant to paragraphs
(3), (4), and (6) of subdivision (e) of Section 25740.5.
(b) Any funds used to support in-state renewable electricity
generation facilities pursuant to this section shall be expended in
accordance with the provisions of this chapter.
(c) Facilities that are eligible to receive funding pursuant to
this section shall be registered in accordance with criteria
developed by the department and those facilities shall not receive
payments for any electricity produced that has any of the following
characteristics:
(1) Is sold at monthly average rates equal to, or greater than,
the applicable target price, as determined by the department, by
action of the board.
(2) Is used onsite.
(d) (1) Existing facilities generating electricity from biomass
energy shall be eligible for funding and otherwise considered an
in-state renewable electricity generation facility only if they
report to the department the types and quantities of biomass fuels
used.
(2) The department shall report the types and quantities of
biomass fuels used by each facility to the Legislature in the reports
prepared pursuant to Section 25748 and approved by the board.
(e) Each existing facility seeking an award pursuant to this
section shall be evaluated by the department to determine the amount
of the funds being sought, the cumulative amount of funds the
facility has received previously from the department and other state
sources, the value of any past and current federal or state tax
credits, the facility's contract price for energy and capacity, the
prices received by similar facilities, the market value of the
facility, and the likelihood that the award will make the facility
competitive and self-sustaining within the 2007-2011 investment
cycle. The department shall use this evaluation to determine the
value of an award to the public relative to other renewable energy
investment alternatives. The department shall compile its findings
and report them to the Legislature in the reports prepared pursuant
to Section 25748 and approved by the board.
SEC. 316. Section 25743 of the Public Resources Code is amended to
read:
25743. (a) The department, by action of the board, shall
terminate all production incentives awarded from the New Renewable
Resources Account prior to January 1, 2002, unless the project began
generating electricity by January 1, 2007.
(b) (1) The department, by action of the board, shall, by March 1,
2008, transfer to electrical corporations serving customers subject
to the renewable energy public goods charge the remaining
unencumbered funds in the New Renewable Resources Account.
(2) The Public Utilities Commission shall ensure that each
electrical corporation allocates funds received from the department
pursuant to paragraph (1) in a manner that maximizes the economic
benefit to all customer classes that funded the New Renewable
Resources Account.
SEC. 317. Section 25744 of the Public Resources Code is amended to
read:
25744. (a) Seventy-nine percent of the money collected pursuant
to the renewable energy public goods charge shall be used for a
multiyear, consumer-based program to foster the development of
emerging renewable technologies in distributed generation
applications.
(b) Funds used for emerging technologies pursuant to this section
shall be expended in accordance with this chapter, subject to all of
the following requirements:
(1) Funding for emerging technologies shall be provided through a
competitive, market-based process that is in place for a period of
not less than five years, and is structured to allow eligible
emerging technology manufacturers and suppliers to anticipate and
plan for increased sale and installation volumes over the life of the
program.
(2) The program shall provide monetary rebates, buydowns, or
equivalent incentives, subject to paragraph (3), to purchasers,
lessees, lessors, or sellers of eligible electricity generating
systems. Incentives shall benefit the end-use consumer of renewable
generation by directly and exclusively reducing the purchase or lease
cost of the eligible system, or the cost of electricity produced by
the eligible system. Incentives shall be issued on the basis of the
rated electrical generating capacity of the system measured in watts,
or the amount of electricity production of the system, measured in
kilowatthours. Incentives shall be limited to a maximum percentage of
the system price, as determined by the board. The department, by
action of the board, may establish different incentive levels for
systems based on technology type and system size, and may provide
different incentive levels for systems used in conjunction with
energy-efficiency measures.
(3) Eligible distributed emerging technologies are fuel cell
technologies that utilize renewable fuels, including fuel cell
technologies with an emission profile equivalent or better than the
State Air Resources Board 2007 standard, and that serve as backup
generation for emergency, safety, or telecommunications systems.
Eligible renewable fuels may include wind turbines of not more than
50 kilowatts rated electrical generating capacity per customer site
and other distributed renewable emerging technologies that meet the
emerging technology eligibility criteria established by the board and
are not eligible for rebates, buydowns, or similar incentives from
any other department or Public Utilities Commission program. Eligible
electricity generating systems are intended primarily to offset part
or all of the consumer's own electricity demand, including systems
that are used as backup power for emergency, safety, or
telecommunications, and shall not be owned by local publicly owned
electric utilities, nor be located at a customer site that is not
receiving distribution service from an electrical corporation that is
subject to the renewable energy public goods charge and contributing
funds to support programs under this chapter. All eligible
electricity generating system components shall be new and unused,
shall not have been previously placed in service in any other
location or for any other application, and shall have a warranty of
not less than five years to protect against defects and undue
degradation of electrical generation output. Systems and their fuel
resources shall be located on the same premises of the end-use
consumer where the consumer's own electricity demand is located, and
all eligible electricity generating systems shall be connected to the
utility grid, unless the system purpose is for backup generation
used in emergency, safety, or telecommunications in California. The
department, by action of the board, may require eligible electricity
generating systems to have meters in place to monitor and measure a
system's performance and generation. Only systems that will be
operated in compliance with applicable law and the rules of the
Public Utilities Commission shall be eligible for funding.
(4) The department, by action of the board, shall limit the amount
of funds available for a system or project of multiple systems and
reduce the level of funding for a system or project of multiple
systems that has received, or may be eligible to receive, any
government or utility funds, incentives, or credit.
(5) In awarding funding, the department, by action of the
board, may provide preference to systems that provide tangible
demonstrable benefits to communities with a plurality of minority or
low-income populations.
(6) In awarding funding, the department, by action of the board,
shall develop and implement eligibility criteria and a system that
provides preference to systems based upon system performance, taking
into account factors, including shading, insulation levels, and
installation orientation.
(7) At least once annually, the department shall publish and make
available to the public the balance of funds available for emerging
renewable energy resources for rebates, buydowns, and other
incentives for the purchase of these resources.
(c) Notwithstanding Section 27540.5, the department, by action of
the board, may expend, until December 31, 2008, up to sixty million
dollars ($60,000,000) of the funding allocated to the Renewable
Resources Trust Fund for the program established in this section,
subject to the repayment requirements of subdivision (f) of Section
25751.
(d) Funds for photovoltaic or solar thermal electric technologies
shall be awarded in compliance with Chapter 8.8 (commencing with
Section 25780), and not with this section.
SEC. 318. Section 25744.5 of the Public Resources Code is amended
to read:
25744.5. The department, by action of the board, shall allocate
and use funding available for emerging renewable technologies
pursuant to Section 25744 and Section 25751 to fund photovoltaic and
solar thermal electric technologies in accordance with eligibility
criteria and conditions established pursuant to Chapter 8.8
(commencing with Section 25780).
SEC. 319. Section 25747 of the Public Resources Code is amended to
read:
25747. (a) The department, by action of the board, shall adopt
guidelines governing the funding programs authorized under this
chapter, at a publicly noticed meeting offering all interested
parties an opportunity to comment. Substantive changes to the
guidelines may not be adopted without at least 10 days' written
notice to the public. The public notice of meetings required by this
subdivision may not be less than 30 days. Notwithstanding any other
provision of law, any guidelines adopted pursuant to this chapter or
Section 399.13 of the Public Utilities Code, shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code. The Legislature
declares that the changes made to this subdivision by the act
amending this section during the 2002 portion of the 2001-02 Regular
Session are declaratory of, and not a change in existing law.
(b) Funds to further the purposes of this chapter may be committed
for multiple years.
(c) Awards made pursuant to this chapter are grants, subject to
appeal to the board upon a showing that factors other than those
described in the guidelines adopted by the board were applied in
making the awards and payments. Any actions taken by an applicant to
apply for, or become or remain eligible and registered to receive,
payments or awards, including satisfying conditions specified by the
board, shall not constitute the rendering of goods, services, or a
direct benefit to the department of the board.
(d) An award made pursuant to this chapter, the amount of the
award, and the terms and conditions of the grant are public
information.
SEC. 320. Section 25748 of the Public Resources Code is amended to
read:
25748. (a) The department, by action of the board, shall report
to the Legislature on or before November 1, 2007, and annually
thereafter, regarding the results of the mechanisms funded pursuant
to this chapter. The report shall contain all of the following:
(1) A description of the allocation of funds among existing, new,
and emerging technologies, the allocation of funds among programs,
including consumer-side incentives, and the need for the reallocation
of money among those technologies.
(2) The status of account transfers and repayments.
(3) A description of the cumulative commitment of claims by
account, the relative demand for funds by account, and a forecast of
future awards.
(4) A list identifying the types and quantities of biomass fuels
used by facilities receiving funds pursuant to Section 25742 and
their impacts on improving air quality.
(5) A discussion of the progress being made toward achieving the
targets established under Section 25740 by each funding category
authorized pursuant to this chapter.
(6) A description of the allocation of funds from interest on the
accounts described in this chapter, and money in the accounts
described in subdivision (b) of Section 25751.
(7) An itemized list, including project descriptions, award
amounts, and outcomes for projects awarded funding in the prior year.
(8) Other matters the department determines may be of importance
to the Legislature.
(b) Money may be reallocated without further legislative action
among existing, new, and emerging technologies and consumer-side
programs in a manner consistent with the report and with the latest
report provided to the Legislature pursuant to this section, except
that reallocations shall not increase the allocation established in
Section 25742.
SEC. 321. 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 following accounts are hereby established within the
Renewable Resource Trust Fund:
(1) Existing Renewable Resources Account.
(2) Emerging Renewable Resources Account.
(3) Renewable Resources Consumer Education Account.
(c) The money in the fund may be expended, only upon appropriation
by the Legislature in the annual Budget Act, for the following
purposes:
(1) The administration of this article by the state.
(2) The state's expenditures associated with the accounting system
established by the board pursuant to subdivision (b) of Section
399.13 of the Public Utilities Code.
(d) That portion of revenues collected by electrical corporations
for the benefit of in-state operation and development of existing and
new and emerging renewable resource technologies, pursuant to
Section 399.8 of the Public Utilities Code, shall be transmitted to
the department at least quarterly for deposit in the Renewable
Resource Trust Fund pursuant to Section 25740.5. After setting aside
in the fund money that may be needed for expenditures authorized by
the annual Budget Act in accordance with subdivision (c), the
Treasurer shall immediately deposit money received pursuant to this
section into the accounts created pursuant to subdivision (b) in
proportions designated by the department for the current calendar
year. Notwithstanding Section 13340 of the Government Code, the money
in the fund and the accounts within the fund are hereby continuously
appropriated to the department without regard to fiscal year for the
purposes enumerated in this chapter.
(e) Upon notification by the department, the Controller shall pay
all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in this chapter. The
eligibility of each award shall be determined solely by the
department, by action of the board, based on the procedures it adopts
under this chapter. Based on the eligibility of each award, the
department shall also establish the need for a multiyear commitment
to any particular award and so advise the Department of Finance.
Eligible awards submitted by the department to the Controller shall
be accompanied by information specifying the account from which
payment should be made and the amount of each payment; a summary
description of how payment of the award furthers the purposes
enumerated in this chapter; and an accounting of future costs
associated with any award or group of awards known to the department
to represent a portion of a multiyear funding commitment.
(f) The department may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts.
(g) The Department of Finance shall conduct an independent audit
of the Renewable Resource Trust Fund and its related accounts
annually, and provide an audit report to the Legislature not later
than March 1 of each year for which this article is operative. The
Department of Finance's report shall include information regarding
revenues, payment of awards, reserves held for future commitments,
unencumbered cash balances, and other matters that the Director of
Finance determines may be of importance to the Legislature.
SEC. 322. Section 25770 of the Public Resources Code is amended to
read:
25770. For the purposes of this chapter, the following terms have
the following meanings:
(a) "Consumer information requirement" means point-of-sale
information or signs that are conspicuously displayed, readily
accessible, and written in a manner that can be easily understood by
the consumer. "Consumer information requirement" does not include
mandatory labeling, imprinting, or other marking, on an individual
tire by the tire manufacturer or the tire retailer.
(b) "Cost effective" means the cost savings to the consumer
resulting from a replacement tire subject to an energy efficiency
standard that equals or exceeds the additional cost to the consumer
resulting from the standard, taking into account the expected fuel
cost savings over the expected life of the replacement tire.
(c) "Replacement tire" means a tire sold in the state that is
designed to replace a tire sold with a new passenger car or
light-duty truck. "Replacement tire" does not include any of the
following tires:
(1) A tire or group of tires with the same SKU, plant, and year,
for which the volume of tires produced or imported is less than
15,000 annually.
(2) A deep tread, winter-type snow tire, a space-saver tire, or a
temporary use spare tire.
(3) A tire with a nominal rim diameter of 12 inches or less.
(4) A motorcycle tire.
(5) A tire manufactured specifically for use in an off-road
motorized recreational vehicle.
SEC. 323. Section 25771 of the Public Resources Code is amended to
read:
25771. On or before July 1, 2006, the department shall develop
and adopt all of the following:
(a) A database of the energy efficiency of a representative sample
of replacement tires sold in the state, based on test procedures
adopted by the department.
(b) Based on the data collected pursuant to subdivision (a), a
rating system for the energy efficiency of replacement tires sold in
the state, that will enable consumers to make more informed decisions
when purchasing tires for their vehicles.
(c) Based on the test procedures adopted pursuant to subdivision
(a) and the rating system established pursuant to subdivision (b),
requirements for tire manufacturers to report to the department the
energy efficiency of replacement tires sold in the state.
SEC. 324. Section 25772 of the Public Resources Code is amended to
read:
25772. On or before July 1, 2007, the department by action of the
board and in consultation with the Department of Resources Recovery
and Recycling, shall, after appropriate notice and workshops, adopt
and, on or before July 1, 2008, implement a tire energy efficiency
program of statewide applicability for replacement tires, designed to
ensure that replacement tires sold in the state are at least as
energy efficient, on average, as tires sold in the state as original
equipment on new passenger cars and light-duty trucks.
SEC. 325. Section 25773 of the Public Resources Code is amended to
read:
25773. (a) The program described in Section 25772 shall include
all of the following:
(1) The development and adoption of minimum energy efficiency
standards for replacement tires, except to the extent that the
department determines that it is unable to do so in a manner that
complies with subparagraphs (A) to (E), inclusive. Energy efficiency
standards adopted pursuant to this paragraph shall meet all of the
following conditions:
(A) Be technically feasible and cost effective.
(B) Not adversely affect tire safety.
(C) Not adversely affect the average tire life of replacement
tires.
(D) Not adversely affect state efforts to manage scrap tires
pursuant to Chapter 17 (commencing with Section 42860) of Part 3 of
Division 30.
(2) The development and adoption of consumer information
requirements for replacement tires for which standards have been
adopted pursuant to paragraph (1).
(b) The energy efficiency standards established pursuant to
paragraph (1) of subdivision (a) shall be based on the results of
laboratory testing and, to the extent it is available and deemed
appropriate by the department, an onroad fleet testing program
developed by tire manufacturers in consultation with the department
and the Department of Resources Recovery and Recycling, conducted by
tire manufacturers, and submitted to the department on or before
January 1, 2006.
(c) If the department finds that tires used to equip an authorized
emergency vehicle, as defined in Section 165 of the Vehicle Code,
are unable to meet the standards established pursuant to paragraph
(1) of subdivision (a), the department shall authorize an operator of
an authorized emergency vehicle fleet to purchase for those vehicles
tires that do not meet those standards.
(d) The department, by action of the board, in consultation with
the Department of Resources Recovery and Recycling, shall review and
revise the program, including any standards adopted pursuant to the
program, as necessary, but not less than once every three years. The
department may not revise the program or standards in a way that
reduces the average efficiency of replacement tires.
SEC. 326. Section 25782 of the Public Resources Code is amended to
read:
25782. (a) The department, by the action of the board shall, by
January 1, 2008, in consultation with the Public Utilities
Commission, local publicly owned electric utilities, and interested
members of the public, establish eligibility criteria for solar
energy systems receiving ratepayer funded incentives that include all
of the following:
(1) Design, installation, and electrical output standards or
incentives.
(2) The solar energy system is intended primarily to offset part
or all of the consumer's own electricity demand.
(3) All components in the solar energy system are new and unused,
and have not previously been placed in service in any other location
or for any other application.
(4) The solar energy system has a warranty of not less than 10
years to protect against defects and undue degradation of electrical
generation output.
(5) The solar energy system is located on the same premises of the
end-use consumer where the consumer's own electricity demand is
located.
(6) The solar energy system is connected to the electrical
corporation's electrical distribution system within the state.
(7) The solar energy system has meters or other devices in place
to monitor and measure the system's performance and the quantity of
electricity generated by the system.
(8) The solar energy system is installed in conformance with the
manufacturer's specifications and in compliance with all applicable
electrical and building code standards.
(b) The department, by the action of the board shall establish
conditions on ratepayer funded incentives that require all of the
following:
(1) Appropriate siting and high quality installation of the solar
energy system by developing installation guidelines that maximize the
performance of the system and prevent qualified systems from being
inefficiently or inappropriately installed. The conditions
established by the department, by the action of the board shall not
impact housing designs or densities presently authorized by a city,
county, or city and county. The goal of this paragraph is to achieve
efficient installation of solar energy systems to promote the
greatest energy production per ratepayer dollar.
(2) Optimal solar energy system performance during periods of peak
electricity demand.
(3) Appropriate energy efficiency improvements in the new or
existing home or commercial structure where the solar energy system
is installed.
(c) The department, by the action of the board shall set rating
standards for equipment, components, and systems to ensure reasonable
performance and shall develop standards that provide for compliance
with the minimum ratings.
(d) Upon establishment of eligibility criteria pursuant to
subdivision (a), a ratepayer funded incentives shall not be made for
a solar energy system that fails to meet the eligibility criteria.
SEC. 327. Section 25783 of the Public Resources Code is amended to
read:
25783. The department, by the action of the board shall do all
the following:
(a) Publish educational materials designed to demonstrate how
builders may incorporate solar energy systems during construction as
well as energy efficiency measures that best complement solar energy
systems.
(b) Develop and publish the estimated annual electrical generation
and savings for solar energy systems. The estimates shall vary by
climate zone, type of system, size, life cycle costs, electricity
prices, and other factors the department determines to be relevant to
a consumer when making a purchasing decision.
(c) Provide assistance to builders and contractors. The assistance
may include technical workshops, training, educational materials,
and related research.
(d) The department shall annually conduct random audits of solar
energy systems to evaluate their operational performance.
SEC. 328. Section 25784 of the Public Resources Code is amended to
read:
25784. The department, by action of the board, shall adopt
guidelines for solar energy systems receiving ratepayer funded
incentives at a publicly noticed meeting offering all interested
parties an opportunity to comment. Not less than 30 days' public
notice shall be given of the meeting required by this section, before
the board initially adopts guidelines. Substantive changes to the
guidelines shall not be adopted without at least 10 days' written
notice to the public. Notwithstanding any other provision of law, any
guidelines adopted pursuant to this chapter shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code.
SEC. 329. Section 25802 of the Public Resources Code is amended to
read:
25802. (a) A person who submits to the department a notice of
intent for any proposed generating facility shall accompany the
notice with a fee of one cent ($0.01) per kilowatt of net electric
capacity of the proposed generation facility. The fee shall only be
paid on one of the alternate proposed facility sites that has the
highest electrical designed capacity. In no event shall the fee be
less than one thousand dollars ($1,000) nor more than twenty-five
thousand dollars ($25,000).
(b) For any other facility, the notice shall be accompanied by a
fee of five thousand dollars ($5,000). The fee shall only be paid on
one of the alternate proposed facility sites.
SEC. 330. Section 25803 of the Public Resources Code is amended to
read:
25803. Funds received by the department pursuant to Section
25802, shall be remitted to the State Treasurer for deposit in the
account. All funds in the account shall be expended for purposes of
carrying out the provisions of this division, when appropriated by
the Legislature in the Budget Act.
SEC. 331. Section 25806 of the Public Resources Code is amended to
read:
25806. (a) A person who submits to the department an application
for certification by the board for a proposed generating facility
shall submit with the application a fee of one hundred thousand
dollars ($100,000) plus two hundred fifty dollars ($250) per megawatt
of gross generating capacity of the proposed facility. The total fee
accompanying an application may not exceed three hundred fifty
thousand dollars ($350,000).
(b) A person who receives certification of a proposed generating
facility shall pay an annual fee of fifteen thousand dollars
($15,000). The first payment of the annual fee is due on the date
this section takes effect. For a facility certified on or after the
effective date of this section, the first payment of the annual fee
is due on the date the board adopts the final decision. All
subsequent payments are due by July 1 of each year in which the
facility retains its certification. The fiscal year for the annual
fee is July 1 to June 30, inclusive.
(c) The fees in subdivisions (a) and (b) shall be adjusted
annually to reflect the percentage change in the Implicit Price
Deflator for State and Local Government Purchases of Goods and
Services, as published by the United States Department of Commerce.
(d) A fee is not required to accompany an application for
certification, and an annual fee is not required thereafter, for a
generating facility that uses a renewable resource as its primary
fuel or power source. For purposes of this subdivision, a renewable
resource includes, but is not limited to, biomass, solar thermal,
geothermal, digester gas, municipal solid waste conversion, landfill
gas, ocean thermal, and solid waste converted to a clean burning fuel
by using a noncombustion thermal process.
(e) The Energy Facility License and Compliance Fund is hereby
created in the State Treasury. All fees received by the department
pursuant to this section shall be remitted to the Treasurer for
deposit in the fund. The money in the fund shall be expended, upon
appropriation by the Legislature, for processing applications for
certification and for compliance monitoring.
SEC. 332. Section 25900 of the Public Resources Code is amended to
read:
25900. Except as provided in Section 25531, whenever the
department, by the action of the board, finds that any provision of
this division is violated or a violation is threatening to take place
that constitutes an emergency requiring immediate action to protect
the public health, welfare, or safety, the Attorney General, upon
request of the department or the board, shall petition a court to
enjoin the violation. The court shall have jurisdiction to grant
prohibitory or mandatory injunctive relief as may be warranted by way
of temporary restraining order, preliminary injunction, and
permanent injunction.
SEC. 333. Section 25901 of the Public Resources Code is amended to
read:
25901. (a) Within 30 days after the department, including the
board, issues its determination on any matter specified in this
division, except as provided in Section 25531, any aggrieved person
may file with the superior court a petition for a writ of mandate for
review of the determination. Failure to file this petition does not
preclude a person from challenging the reasonableness and validity of
a decision in any judicial proceedings brought to enforce the
decision or to obtain other civil remedies.
(b) The decision of the department or the board shall be
sustained by the court unless the court finds (1) that the department
or the board proceeded without, or in excess of its jurisdiction,
(2) that, based exclusively upon a review of the record before the
department or the board, the decision is not supported by substantial
evidence in light of the whole record, or (3) that the department or
the board failed to proceed in the manner required by law.
(c) Except as otherwise provided in this section, subdivisions (f)
and (g) of Section 1094.5 of the Code of Civil Procedure govern
proceedings pursuant to this section.
(d) The amendment of this section made at the 1989-90 Regular
Session of the Legislature does not constitute a change in, but is
declaratory of, existing law.
SEC. 334. Section 25902 of the Public Resources Code is amended to
read:
25902. Any evaluations in the reports required by Section 25302
and any findings and determinations on the notice of intent pursuant
to Chapter 6 (commencing with Section 25500) shall not be construed
as a final evaluation, finding, or determination by the department or
the board and a court action may not be brought to review the
evaluation, finding, or determination.
SEC. 335. Section 25910 of the Public Resources Code is amended to
read:
25910. The department shall, by regulation adopted by the board,
establish minimum standards for the amount of additional insulation
(expressed in terms of R-value) installed in existing buildings. One
year after the adoption of those standards, no insulation shall be
installed in any existing building by a contractor unless the
contractor certifies to the customer in writing that the amount of
insulation (expressed in terms of R-value) meets or exceeds the
minimum amount established by the standards. The minimum standards
may vary for different types of buildings or building occupancies and
different climate zones in the state. The minimum standards shall be
economically feasible in that the resultant savings in energy
procurement costs shall be greater than the cost of the insulation to
the customer amortized over the useful life of the insulation.
SEC. 336. Section 25911 of the Public Resources Code is amended to
read:
25911. The California Energy Board may adopt regulations
pertaining to urea formaldehyde foam insulation materials as are
reasonably necessary to protect the public health and safety. These
regulations may include, but are not limited to, prohibition of the
manufacture, sale, or installation of urea formaldehyde foam
insulation, requirements for safety notices to consumers,
certification of installers, and specification of installation
practices. Regulations adopted pursuant to this section shall be
promulgated after public hearings in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. Any regulation adopted by the board to prohibit
the sale and installation of urea formaldehyde foam insulation shall
be based upon a record of scientific evidence that demonstrates the
need for the prohibition in order to protect the public health and
safety.
SEC. 337. Section 25912 of the Public Resources Code is amended to
read:
25912. Prior to the board adopting any regulation that causes a
prohibition on the sale and installation of urea formaldehyde foam
insulation, the department shall consult with, and solicit written
comments from, all of the following:
(a) Federal and state agencies with
appropriate scientific staffs, including, but not limited to, the
State Department of Health Services, the National Academy of
Sciences, the United States Department of Housing and Urban
Development, the United States Department of Energy, and the United
States Consumer Product Safety Commission.
(b) Universities and public and private scientific organizations.
SEC. 338. Section 25942 of the Public Resources Code is amended to
read:
25942. (a) On or before July 1, 1995, the department shall
establish criteria for adopting a statewide home energy rating
program for residential dwellings. The program criteria shall
include, but are not limited to, all of the following elements:
(1) Consistent, accurate, and uniform ratings based on a single
statewide rating scale.
(2) Reasonable estimates of potential utility bill savings, and
reliable recommendations on cost-effective measures to improve energy
efficiency.
(3) Training and certification procedures for home raters and
quality assurance procedures to promote accurate ratings and to
protect consumers.
(4) In coordination with home energy rating service organization
data bases, procedures to establish a centralized, publicly
accessible, data base that includes a uniform reporting system for
information on residential dwellings, excluding proprietary
information, needed to facilitate the program. There shall be no
public access to information in the data base concerning specific
dwellings without the owner's or occupant's permission.
(5) Labeling procedures that will meet the needs of home buyers,
homeowners, renters, the real estate industry, and mortgage lenders
with an interest in home energy ratings.
(b) The department shall adopt the program pursuant to subdivision
(a) in consultation with representatives of the Department of Real
Estate, the Department of Housing and Community Development, the
Public Utilities Commission, investor-owned and municipal utilities,
cities and counties, real estate licensees, home builders, mortgage
lenders, home appraisers and inspectors, home energy rating
organizations, contractors who provide home energy services, consumer
groups, and environmental groups.
(c) On and after January 1, 1996, no home energy rating services
may be performed in this state unless the services have been
certified, if a certification program is available, by the department
to be in compliance with the program criteria specified in
subdivision (a) and, in addition, are in conformity with any other
applicable element of the program.
(d) On or before July 1, 1996, the department shall consult with
the agencies and organizations described in subdivision (b), to
facilitate a public information program to inform homeowners, rental
property owners, renters, sellers, and others of the existence of the
statewide home energy rating program adopted by the department.
(e) Beginning with the 1998 biennial energy conservation report
required by Section 25401.1, the department shall, as part of that
biennial report prepared pursuant to Section 25302, report on the
progress made to implement a statewide home energy rating program.
The report shall include an evaluation of the energy savings
attributable to the program, and a recommendation concerning which
means and methods will be most efficient and cost-effective to induce
home energy ratings for residential dwellings.
SEC. 339. Section 25943 of the Public Resources Code is amended to
read:
25943. (a) (1) By March 1, 2010, the department, by action of the
board, shall establish a regulatory proceeding to develop and
implement a comprehensive program to achieve greater energy savings
in California's existing residential and nonresidential building
stock. This program shall comprise a complementary portfolio of
techniques, applications, and practices that will achieve greater
energy efficiency in existing residential and nonresidential
structures that fall significantly below the current standards in
Title 24 of the California Code of Regulations, as determined by the
department.
(2) The comprehensive program may include, but need not be limited
to, a broad range of energy assessments, building benchmarking,
energy rating, cost-effective energy efficiency improvements, public
and private sector energy efficiency financing options, public
outreach and education efforts, and green workforce training.
(b) To develop and implement the program specified in subdivision
(a), the department shall do both of the following:
(1) Coordinate with the Public Utilities Commission and consult
with representatives from the Department of Real Estate, the
Department of Housing and Community Development, investor-owned and
publicly owned utilities, local governments, real estate licensees,
commercial and home builders, commercial property owners, small
businesses, mortgage lenders, financial institutions, home
appraisers, inspectors, energy rating organizations, consumer groups,
environmental and environmental justice groups, and other entities
the board deems appropriate.
(2) Hold at least three public hearings in geographically diverse
locations throughout the state.
(c) In developing the requirements for the program specified in
subdivision (a), the board shall consider all of the following:
(1) The amount of annual and peak energy savings, greenhouse gas
emission reductions, and projected customer utility bill savings that
will accrue from the program.
(2) The most cost-effective means and reasonable timeframes to
achieve the goals of the program.
(3) The various climatic zones within the state.
(4) An appropriate method to inform and educate the public about
the need for, benefits of, and environmental impacts of, the
comprehensive energy efficiency program.
(5) The most effective way to report the energy assessment results
and the corresponding energy efficiency improvements to the owner of
the residential or nonresidential building, including, among other
things, the following:
(A) Prioritizing the identified energy efficiency improvements.
(B) The payback period or cost-effectiveness of each improvement
identified.
(C) The various incentives, loans, grants, and rebates offered to
finance the improvements.
(D) Available financing options including all of the following:
(i) Mortgages or sales agreement components.
(ii) On-bill financing.
(iii) Contractual property tax assessments.
(iv) Home warranties.
(6) Existing statutory and regulatory requirements to achieve
energy efficiency savings and greenhouse gas emission reductions.
(7) A broad range of implementation approaches, including both
utility and nonutility administration of energy efficiency programs.
(8) Any other considerations deemed appropriate by the board.
(d) The program developed pursuant to this section shall do all of
the following:
(1) Minimize the overall costs of establishing and implementing
the comprehensive energy efficiency program requirements.
(2) Ensure, for residential buildings, that the energy efficiency
assessments, ratings, or improvements do not unreasonably or
unnecessarily affect the home purchasing process or the ability of
individuals to rent housing. A transfer of property subject to the
program implemented pursuant to this section shall not be invalidated
solely because of the failure of a person to comply with a provision
of the program.
(3) Ensure, for nonresidential buildings, that the energy
improvements do not have an undue economic impact on California
businesses.
(4) Determine, for residential buildings, the appropriateness of
the Home Energy Rating System (HERS) program to support the goals of
this section and whether there are a sufficient number of
HERS-certified raters available to meet the program requirements.
(5) Determine, for nonresidential structures, the availability of
an appropriate cost-effective energy efficiency assessment system and
whether there are a sufficient number of certified raters or
auditors available to meet the program requirements.
(6) Coordinate with the California Workforce Investment Board, the
Employment Training Panel, the California Community Colleges, and
other entities to ensure a qualified, well-trained workforce is
available to implement the program requirements.
(7) Coordinate with, and avoid duplication of, existing
proceedings of the Public Utilities Commission and programs
administered by utilities.
(e) A home energy rating or energy assessment service does not
meet the requirements of this section unless the service has been
certified by the board to be in compliance with the program criteria
developed pursuant to this section and is in conformity with other
applicable elements of the program.
(f) The department, by action of the board, shall periodically
update the criteria and adopt any revision that, in its judgment, is
necessary to improve or refine program requirements after receiving
public input.
(g) Before implementing an element of the program developed
pursuant to subdivision (a) that requires the expansion of statutory
authority of the department or the Public Utilities Commission, the
department and the Public Utilities Commission shall obtain
legislative approval for the expansion of their authorities.
(h) The department shall report on the status of the program in
the integrated energy policy report pursuant to Section 25302.
(i) The department shall fund activities undertaken pursuant to
this section from the Federal Trust Fund consistent with the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or
other sources of nonstate funds available to the department for the
purposes of this section.
(j) For purposes of this section, "energy assessment" means a
determination of an energy user's energy consumption level, relative
efficiency compared to other users, and opportunities to achieve
greater efficiency or improve energy resource utilization.
SEC. 340. Section 25960 of the Public Resources Code is amended to
read:
25960. A new residential-type gas appliance that is equipped
with a pilot light shall not be sold in the state after an alternate
means has been certified by the board. This prohibition shall become
operative 24 months after an intermittent ignition device has been
demonstrated and certified by the board as an alternate means. The
board may determine, after demonstration, that there is no feasible
alternative means to the use of pilot light or that the use of a
pilot light is necessary for public health and safety.
SEC. 341. Section 25961 of the Public Resources Code is amended to
read:
25961. The department, by action of the board, shall, on or
before January 1, 1976, develop in cooperation with affected industry
and consumer representatives, who will be designated as such
representatives by the board, the specifications for certification of
intermittent ignition devices that shall not significantly affect
the price of gas appliances in competition with similar electrical
appliances. The specification shall be developed so as to result in
the conservation of primary energy resources, shall include
provisions necessary for public health and safety, and shall give due
consideration to the initial costs, including installation and
maintenance costs imposed upon the consumer.
SEC. 342. Section 25962 of the Public Resources Code is amended to
read:
25962. Within 90 days after an intermittent ignition device has
been certified by the board, the department shall notify all gas
appliance manufacturers doing business in the state, as to the
prohibition of affected pilot lights and shall inform the
manufacturers of the devices available to comply with this article.
SEC. 343. Section 25963 of the Public Resources Code is amended to
read:
25963. The department shall create a seal of certification and
shall distribute the seal to every manufacturer that complies with
this article. The seal shall be affixed to every new appliance sold
in the state.
SEC. 344. Section 25964 of the Public Resources Code is amended to
read:
25964. After 24 months after an intermittent ignition device has
been certified by the board, a person shall not sell or offer for
sale in this state any new gas appliances, as defined in Section
25950, without obtaining the proper seal of certification from the
board, unless the board otherwise permits this action. Beginning 24
months after an intermittent ignition device has been certified by
the board, a city or county, city and county, or state agency shall
not issue a permit for any building to be equipped with any new gas
appliance, as defined in Section 25950, unless the building permit
shows that the gas appliance complies with this chapter. However, any
new gas appliance that does not comply with this chapter may be
installed if the appliance was purchased pursuant to a contract
executed prior to June 17, 1978, and if the building permit was
approved prior to July 8, 1978.
SEC. 345. Section 25965 of the Public Resources Code is amended to
read:
25965. After 24 months after an intermittent ignition device has
been certified by the board, the department shall make periodic
inspections of manufacturers and distributors of gas appliances and
may inspect retail outlets, including gas appliances that have been
or are to be installed by contractors or builders at building sites
in order to determine their compliance with this article.
SEC. 346. Section 25967 of the Public Resources Code is amended to
read:
25967. (a) Any person who violates this chapter shall be liable
for a civil penalty not to exceed two thousand five hundred dollars
($2,500) for each violation, which shall be assessed and recovered in
a civil action brought in the name of the people of the State of
California by the Attorney General or by any district attorney,
county counsel, or city attorney in any court of competent
jurisdiction.
(b) If the action is brought by the Attorney General, one-half of
the penalty collected shall be paid to the treasurer of the county in
which the judgment was entered, and one-half to the State Treasurer.
If brought by a district attorney or county counsel, the entire
amount of penalty collected shall be paid to the treasurer of the
county in which the judgment was entered. If brought by a city
attorney or city prosecutor, one-half of the penalty shall be paid to
the treasurer of the county and one-half to the city.
(c) If the action is brought at the request of the department or
the board, the court shall determine the reasonable expenses incurred
by the department or the board in the investigation and prosecution
of the action.
(d) Before any penalty collected is paid out pursuant to
subdivision (b), the amount of such reasonable expenses incurred by
the department or the board shall be paid to the State Treasurer.
SEC. 347. Section 25968 of the Public Resources Code is amended to
read:
25968. Any inspector appointed or authorized by the department or
the board shall have access to the premises, equipment, materials,
partly finished and finished articles, and records of any person
subject to this chapter.
SEC. 348. Section 26004 of the Public Resources Code is amended to
read:
26004. (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
(b) The authority shall consist of five members, as follows:
(1) The Director of Finance.
(2) The Secretary of the Department of Energy.
(3) The President of the Public Utilities Commission.
(4) The Controller.
(5) The Treasurer, who shall serve as the chairperson of the
authority.
(c) The members listed in paragraphs (1) to (5), inclusive, of
subdivision (b) may each designate a deputy or clerk in his or her
agency to act for and represent the member at all meetings of the
authority.
(d) The first meeting of the authority shall be convened by the
Treasurer.
SEC. 349. Section 26011.5 of the Public Resources Code is amended
to read:
26011.5. The authority, in consultation with the Department of
Energy, shall establish criteria for the selection of projects to
receive financing assistance from the authority. In the selection of
projects, the authority shall, in accordance with the legislative
intent, provide financial assistance under this division in a manner
consistent with sound financial practice. In developing project
selection criteria, the authority shall consider, but not be limited
to, all of the following:
(a) The technological feasibility of the projects.
(b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
(c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
(d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
(e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.
SEC. 350. Section 26011.6 of the Public Resources Code is amended
to read:
26011.6. (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
(b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of Chapter 3.5, including Section 11349.6 of the Government
Code, the adoption of the regulations shall be considered by the
Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
(c) The authority shall consult with the Department of Energy
regarding the financing of projects to avoid duplication of other
renewable energy projects.
(d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
(e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
SEC. 351. Section 30404 of the Public Resources Code is amended to
read:
30404. (a) The commission shall periodically, in the case of the
Department of Energy, the State Board of Forestry and Fire
Protection, the State Water Resources Control Board and the
California regional water quality control boards, the State Air
Resources Board and air pollution control districts and air quality
management districts, the Department of Fish and Game, the Department
of Parks and Recreation, the Department of Boating and Waterways,
the California Geological Survey and the Division of Oil, Gas, and
Geothermal Resources in the Department of Conservation, and the State
Lands Commission, and may, with respect to any other state agency,
submit recommendations designed to encourage the state agency to
carry out its functions in a manner consistent with this division.
The recommendations may include proposed changes in administrative
regulations, rules, and statutes.
(b) Each of those state agencies shall review and consider the
commission recommendations and shall, within six months from the date
of their receipt, to the extent that the recommendations have not
been implemented, report to the Governor and the Legislature its
action and reasons therefor. The report shall also include the state
agency's comments on any legislation that may have been proposed by
the commission.
SEC. 352. Section 322 is added to the Public Utilities Code, to
read:
322. (a) Whenever in this chapter a reference is made to the
"California Energy Resources Conservation and Development Commission,"
the "State Energy Resources Conservation and Development Commission,"
or the "Energy Commission," it means the Department of Energy as
successor to that entity.
(b) Whenever in this chapter a reference is made to the Department
of Water Resources acting pursuant to Division 27 (commencing with
Section 80000) of the Water Code, it includes the Department of
Energy as the successor to the Department of Water Resources for this
purpose.
SEC. 353. Article 2 (commencing with Section 334) of Chapter 2.3
of Part 1 of Division 1 of the Public Utilities Code is repealed.
SEC. 354. Section 345.1 is added to the Public Utilities Code, to
read:
345.1. (a) The Independent System Operator governing board shall
be composed of a five-member independent governing board of directors
appointed by the Governor and subject to confirmation by the Senate.
Any reference in this chapter or in any other provision of law to
the Independent System Operator governing board means the independent
governing board appointed under this subdivision.
(b) A member of the independent governing board appointed under
subdivision (a) may not be affiliated with any actual or potential
participant in any market administered by the Independent System
Operator.
(c) (1) All appointments shall be for three-year terms.
(2) There is no limit on the number of terms that may be served by
any member.
(d) The Office of Energy Market Oversight shall require the
articles of incorporation and bylaws of the Independent System
Operator to be maintained in accordance with this section, and shall
make filings with the Federal Energy Regulatory Commission as the
office determines to be necessary.
(e) For the purposes of the initial appointments to the
Independent System Operator governing board, as provided in
subdivision (a), the Governor shall appoint one member to a one-year
term, two members to a two-year term, and two members to a three-year
term.
SEC. 355. Section 345.2 is added to the Public Utilities Code, to
read:
345.2. (a) The Independent System Operator bylaws shall contain
provisions that identify those matters specified in subdivision (b)
of Section 25227.6 of the Public Resources Code as matters within
state jurisdiction. The bylaws shall also contain provisions that
state that California's bylaws approval function with respect to the
matters specified in subdivision (b) of Section 25227.6 of the Public
Resources Code shall not preclude the Federal Energy Regulatory
Commission from taking any action necessary to address undue
discrimination or other violations of the Federal Power Act (16
U.S.C. Sec. 791a et seq.) or to exercise any other commission
responsibility under the Federal Power Act. In taking this action,
the Federal Energy Regulatory Commission shall give due respect to
California's jurisdictional interests in the functions of the
Independent System Operator and to attempt to accommodate state
interests to the extent those interests are not inconsistent with the
Federal Energy Regulatory Commission's statutory responsibilities.
The bylaws shall state that any future agreement regarding the
apportionment of the Independent System Operator board appointment
function among participating states associated with the expansion of
the Independent System Operator into a multistate entity shall be
filed with the Federal Energy Regulatory Commission pursuant to
Section 205 of the Federal Power Act (16 U.S.C. Sec. 824d).
(b) Any necessary bylaw changes to implement the provisions of
Section 345.1 or subdivision (a) of this section, or Section 25227.1,
25227.5, or 25227.6 of the Public Resources Code, or changes
required pursuant to an agreement as contemplated by subdivision (a)
of this section with a participating state for a regional
organization, shall be effective upon approval of the Independent
System Operator governing board and the Office of Energy Market
Oversight and acceptance for filing by the Federal Energy Regulatory
Commission.
SEC. 356. Section 346 of the Public Utilities Code is repealed.
SEC. 357. Section 348 of the Public Utilities Code is amended to
read:
348. The Independent System Operator shall adopt inspection,
maintenance, repair, and replacement standards for the transmission
facilities under its control no later than September 30, 1997. The
standards, which shall be performance or prescriptive standards, or
both, as appropriate, for each substantial type of transmission
equipment or facility, shall provide for high quality, safe, and
reliable service. In adopting its standards, the Independent System
Operator shall consider: cost, local geography and weather,
applicable codes, national electric industry practices, sound
engineering judgment, and experience. The Independent System Operator
shall also adopt standards for reliability, and safety during
periods of emergency and disaster. The Independent System Operator
shall report to the Office of Energy Market Oversight, at the times
as that office may specify, on the development and implementation of
the standards in relation to facilities under the operational control
of the Independent System Operator. The Independent System Operator
shall require each transmission facility owner or operator to report
annually on its compliance with the standards. That report shall be
made available to the
public.
SEC. 358. Section 350 of the Public Utilities Code is repealed.
SEC. 359. Section 352 of the Public Utilities Code is amended to
read:
352. The Independent System Operator shall not enter into a
multistate entity or a regional organization as authorized in Section
359 unless that entry is approved by the Office of Energy Market
Oversight.
SEC. 360. Section 360 of the Public Utilities Code is repealed.
SEC. 361. Section 365 of the Public Utilities Code is repealed.
SEC. 362. Section 384 of the Public Utilities Code is amended to
read:
384. (a) Funds transferred to the Department of Energy pursuant
to this article for purposes of public interest research,
development, and demonstration shall be transferred to the Public
Interest Research, Development, and Demonstration Fund, which is
hereby created in the State Treasury. The fund is a trust fund and
shall contain money from all interest, repayments, disencumbrances,
royalties, and any other proceeds appropriated, transferred, or
otherwise received for purposes pertaining to public interest
research, development, and demonstration. Any appropriations that are
made from the fund shall have an encumbrance period of not longer
than two years, and a liquidation period of not longer than four
years.
(b) Funds deposited in the Public Interest Research, Development,
and Demonstration Fund may be expended for projects that serve the
energy needs of both stationary and transportation purposes if the
research provides an electricity ratepayer benefit.
(c) The Department of Energy shall report annually to the
appropriate budget committees of the Legislature on any encumbrances
or liquidations that are outstanding at the time the commission's
budget is submitted to the Legislature for review.
SEC. 363. Section 398.3 of the Public Utilities Code is amended to
read:
398.3. (a) Beginning January 1, 1998, or as soon as practicable
thereafter, each generator that provides meter data to a system
operator shall report to the system operator electricity generated in
kilowatthours by hour by generator, the fuel type or fuel types and
fuel consumption by fuel type by month on an historical recorded
quarterly basis. Facilities using only one fuel type may satisfy this
requirement by reporting fuel type only. With regard to any facility
using more than one fuel type, reports shall reflect the fuel
consumed as a percentage of electricity generation.
(b) The Department of Energy shall have authorization to access
the electricity generation data in kilowatthours by hour for each
facility that provides meter data to the system operator, and the
fuel type or fuel types.
(c) With regard to out-of-state generation, the Department of
Energy shall have authorization to access the electricity generation
data in kilowatthours by hour at the point at which out-of-state
generation is metered, to the extent the information has been
submitted to a system operator.
(d) Trade secrets as defined in subdivision (d) of Section 3426.1
of the Civil Code contained in the information provided to the system
operators pursuant to this section shall be treated as confidential.
These data may be disclosed only by the system operators and only by
authorization of the generator except that the Department of Energy
shall have authorization to access these data, shall consider all
these data to be trade secrets, and shall only release these data in
an aggregated form such that trade secrets cannot be discerned.
SEC. 364. Section 398.5 of the Public Utilities Code is amended to
read:
398.5. (a) Retail suppliers that disclose specific purchases
pursuant to Section 398.4 shall report on June 1, 2009, and annually
thereafter, to the Department of Energy, for each electricity
offering for the previous calendar year, each of the following:
(1) The kilowatthours purchased, by generator and fuel type during
the previous calendar year, consistent with the meter data,
including losses, reported to the system operator.
(2) For each electricity offering the kilowatthours sold at
retail.
(3) For each electricity offering the disclosures made to
consumers pursuant to Section 398.4.
(b) Information submitted to the Department of Energy pursuant to
this section that is a trade secret as defined in subdivision (d) of
Section 3426.1 of the Civil Code shall not be released except in an
aggregated form such that trade secrets cannot be discerned.
(c) On or before January 1, 1998, the Department of Energy shall
specify guidelines and standard formats, based on the requirements of
this article and subject to public hearing, for the submittal of
information pursuant to this article.
(d) In developing the rules and procedures specified in this
section, the Department of Energy shall seek to minimize the
reporting burden and cost of reporting that it imposes on retail
suppliers.
(e) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
(f) The Department of Energy may verify the veracity of
environmental claims made by retail suppliers.
SEC. 365. Section 399.2.5 of the Public Utilities Code is amended
to read:
399.2.5. (a) Notwithstanding any other provision in Sections 1001
to 1013, inclusive, an application to the California Energy Board
within the Department of Energy of an electrical corporation for a
certificate authorizing the construction of new transmission
facilities shall be deemed to be necessary to the provision of
electric service for purposes of any determination made under Section
1003 if the California Energy Board within the Department of Energy
finds that the new facility is necessary to facilitate achievement of
the renewable power goals established in Article 16 (commencing with
Section 399.11).
(b) With respect to a transmission facility described in
subdivision (a), the commission shall take all feasible actions to
ensure that the transmission rates established by the Federal Energy
Regulatory Commission are fully reflected in any retail rates
established by the commission. These actions shall include, but are
not limited to:
(1) Making findings, where supported by an evidentiary record,
that those transmission facilities provide benefit to the
transmission network and are necessary to facilitate the achievement
of the renewables portfolio standard established in Article 16
(commencing with Section 399.11).
(2) Directing the utility to which the generator will be
interconnected, where the direction is not preempted by federal law,
to seek the recovery through general transmission rates of the costs
associated with the transmission facilities.
(3) Asserting the positions described in paragraphs (1) and (2) to
the Federal Energy Regulatory Commission in appropriate proceedings.
(4) Allowing recovery in retail rates of any increase in
transmission costs incurred by an electrical corporation resulting
from the construction of the transmission facilities that are not
approved for recovery in transmission rates by the Federal Energy
Regulatory Commission after the commission determines that the costs
were prudently incurred in accordance with subdivision (a) of Section
454.
SEC. 366. Section 399.8 of the Public Utilities Code is amended to
read:
399.8. (a) In order to ensure that the citizens of this state
continue to receive safe, reliable, affordable, and environmentally
sustainable electric service, it is the policy of this state and the
intent of the Legislature that prudent investments in energy
efficiency, renewable energy, and research, development, and
demonstration shall continue to be made.
(b) (1) Every customer of an electrical corporation shall pay a
nonbypassable system benefits charge authorized pursuant to this
article. The system benefits charge shall fund energy efficiency,
renewable energy, and research, development, and demonstration.
(2) Local publicly owned electric utilities shall continue to
collect and administer system benefits charges pursuant to Section
385.
(c) (1) The commission shall require each electrical corporation
to identify a separate rate component to collect revenues to fund
energy efficiency, renewable energy, and research, development, and
demonstration programs authorized pursuant to this section beginning
January 1, 2002, and ending January 1, 2012. The rate component shall
be a nonbypassable element of the local distribution service and
collected on the basis of usage.
(2) This rate component may not exceed, for any tariff schedule,
the level of the rate component that was used to recover funds
authorized pursuant to Section 381 on January 1, 2000. If the amounts
specified in paragraph (1) of subdivision (d) are not recovered
fully in any year, the commission shall reset the rate component to
restore the unrecovered balance, provided that the rate component may
not exceed, for any tariff schedule, the level of the rate component
that was used to recover funds authorized pursuant to Section 381 on
January 1, 2000. Pending restoration, any annual shortfalls shall be
allocated pro rata among the three funding categories in the
proportions established in paragraph (1) of subdivision (d).
(d) The commission shall order San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company to collect these funds commencing on January 1, 2002, as
follows:
(1) Two hundred twenty-eight million dollars ($228,000,000) per
year in total for energy efficiency and conservation activities,
sixty-five million five hundred thousand dollars ($65,500,000) in
total per year for renewable energy, and sixty-two million five
hundred thousand dollars ($62,500,000) in total per year for
research, development, and demonstration. The funds for energy
efficiency and conservation activities shall continue to be allocated
in proportions established for the year 2000 as set forth in
paragraph (1) of subdivision (c) of Section 381.
(2) The amounts shall be adjusted annually at a rate equal to the
lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
(e) The commission shall ensure that each electrical corporation
allocates funds transferred by the Department of Energy pursuant to
subdivision (b) of Section 25743 in a manner that maximizes the
economic benefit to all customer classes that funded the New
Renewable Resources Account.
(f) The commission and the Department of Energy shall retain and
continue their oversight responsibilities as set forth in Sections
381 and 383 of this code, and Chapter 7.1 (commencing with Section
25620) and Chapter 8.6 (commencing with Section 25740) of Division 15
of the Public Resources Code.
(g) An applicant for the Large Nonresidential Standard Performance
Contract Program funded pursuant to paragraph (1) of subdivision (b)
and an electrical corporation shall promptly attempt to resolve
disputes that arise related to the program's guidelines and
parameters prior to entering into a program agreement. The applicant
shall provide the electrical corporation with written notice of any
dispute. Within 10 business days after receipt of the notice, the
parties shall meet to resolve the dispute. If the dispute is not
resolved within 10 business days after the date of the meeting, the
electrical corporation shall notify the applicant of his or her right
to file a complaint with the commission, which complaint shall
describe the grounds for the complaint, injury, and relief sought.
The commission shall issue its findings in response to a filed
complaint within 30 business days of the date of receipt of the
complaint. Prior to issuance of its findings, the commission shall
provide a copy of the complaint to the electrical corporation, which
shall provide a response to the complaint to the commission within
five business days of the date of receipt. During the dispute period,
the amount of estimated financial incentives shall be held in
reserve until the dispute is resolved.
SEC. 367. Section 399.11 of the Public Utilities Code is amended
to read:
399.11. The Legislature finds and declares all of the following:
(a) In order to attain a target of generating 20 percent of total
retail sales of electricity in California from eligible renewable
energy resources by December 31, 2010, and for the purposes of
increasing the diversity, reliability, public health, and
environmental benefits of the energy mix, it is the intent of the
Legislature that the commission and the Department of Energy
implement the California Renewables Portfolio Standard Program
described in this article.
(b) Increasing California's reliance on eligible renewable energy
resources may promote stable electricity prices, protect public
health, improve environmental quality, stimulate sustainable economic
development, create new employment opportunities, and reduce
reliance on imported fuels.
(c) The development of eligible renewable energy resources and the
delivery of the electricity generated by those resources to
customers in California may ameliorate air quality problems
throughout the state and improve public health by reducing the
burning of fossil fuels and the associated environmental impacts and
by reducing in-state fossil fuel consumption.
(d) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the Department of Energy and established pursuant to
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
(e) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.
SEC. 368. Section 399.12 of the Public Utilities Code is amended
to read:
399.12. For purposes of this article, the following terms have
the following meanings:
(a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
(b) "Delivered" and "delivery" have the same meaning as provided
in subdivision (a) of Section 25741 of the Public Resources Code.
(c) "Eligible renewable energy resource" means an electric
generating facility that meets the definition of "in-state renewable
electricity generation facility" in Section 25741 of the Public
Resources Code, subject to the following limitations:
(1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility owned or procured the electricity
from the facility as of December 31, 2005. A new hydroelectric
facility is not an eligible renewable energy resource if it will
cause an adverse impact on instream beneficial uses or cause a change
in the volume or timing of streamflow.
(B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
(2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable resource unless it is
located in Stanislaus County and was operational prior to September
26, 1996.
(d) "Procure" means that a retail seller or local publicly owned
electric utility receives delivered electricity generated by an
eligible renewable energy resource that it owns or for which it has
entered into an electricity purchase agreement. Nothing in this
article is intended to imply that the purchase of electricity from
third parties in a wholesale transaction is the preferred method of
fulfilling a retail seller's obligation to comply with this article
or the obligation of a local publicly owned electric utility to meet
its renewables portfolio standard implemented pursuant to Section
387.
(e) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller is required to procure pursuant to this article or
the obligation of a local publicly owned electric utility to meet its
renewables portfolio standard implemented pursuant to Section 387.
(f) (1) "Renewable energy credit" means a certificate of proof,
issued through the accounting system established by the Department of
Energy pursuant to Section 399.13, that one unit of electricity was
generated and delivered by an eligible renewable energy resource.
(2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
(3) No electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity, as determined by the Department of Energy, shall
result in the creation of a renewable energy credit.
(g) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
(3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric service provider shall be
subject to the same terms and conditions applicable to an electrical
corporation pursuant to this article. This paragraph does not impair
a contract entered into between an electric service provider and a
retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
(4) "Retail seller" does not include any of the following:
(A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
(C) A local publicly owned electric utility.
SEC. 369. Section 399.12.5 of the Public Utilities Code is amended
to read:
399.12.5. (a) Notwithstanding subdivision (c) of Section 399.12,
a small hydroelectric generation facility that satisfies the criteria
for an eligible renewable energy resource pursuant to Section 399.12
shall not lose its eligibility if efficiency improvements undertaken
after January 1, 2008, cause the generating capacity of the facility
to exceed 30 megawatts, and the efficiency improvements do not
result in an adverse impact on instream beneficial uses or cause a
change in the volume or timing of streamflow. The entire generating
capacity of the facility shall be eligible.
(b) Notwithstanding subdivision (c) of Section 399.12, the
incremental increase in the amount of electricity generated from a
hydroelectric generation facility as a result of efficiency
improvements at the facility, is electricity from an eligible
renewable energy resource, without regard to the electrical output of
the facility, if all of the following conditions are met:
(1) The incremental increase is the result of efficiency
improvements from a retrofit that do not result in an adverse impact
on instream beneficial uses or cause a change in the volume or timing
of streamflow.
(2) The hydroelectric generation facility has, within the
immediately preceding 15 years, received certification from the State
Water Resources Control Board pursuant to Section 401 of the Clean
Water Act (33 U.S.C. Sec. 1341), or has received certification from a
regional board to which the state board has delegated authority to
issue certification, unless the facility is exempt from certification
because there is no potential for discharge into waters of the
United States.
(3) The hydroelectric generation facility was operational prior to
January 1, 2007, the efficiency improvements are initiated on or
after January 1, 2008, the efficiency improvements are not the result
of routine maintenance activities, as determined by the Department
of Energy, by action of the California Energy Board, and the
efficiency improvements were not included in any resource plan
sponsored by the facility owner prior to January 1, 2008.
(4) All of the incremental increase in electricity resulting from
the efficiency improvements are demonstrated to result from a
long-term financial commitment by the retail seller or local publicly
owned electric utility. For purposes of this paragraph, "long-term
financial commitment" means either new ownership investment in the
facility by the retail seller or local publicly owned electric
utility or a new or renewed contract with a term of 10 or more years,
which includes procurement of the incremental generation.
(c) The incremental increase in the amount of electricity
generated from a hydroelectric generation facility as a result of
efficiency improvements at the facility are not eligible for
supplemental energy payments pursuant to the Renewable Energy
Resources Program (Chapter 8.6 (commencing with Section 25740) of
Division 15 of the Public Resources Code), or a successor program.
SEC. 370. Section 399.13 of the Public Utilities Code is amended
to read:
399.13. The Department of Energy, by action of the California
Energy Board, shall do all of the following:
(a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision (b) of Section 399.12.
(b) Design and implement an accounting system to verify compliance
with the renewables portfolio standard by retail sellers, to ensure
that electricity generated by an eligible renewable energy resource
is counted only once for the purpose of meeting the renewables
portfolio standard of this state or any other state, to certify
renewable energy credits produced by eligible renewable energy
resources, and to verify retail product claims in this state or any
other state. In establishing the guidelines governing this accounting
system, the Department of Energy shall collect data from electricity
market participants that it deems necessary to verify compliance of
retail sellers, in accordance with the requirements of this article
and the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code). In
seeking data from electrical corporations, the Department of Energy
shall request data from the commission. The commission shall collect
data from electrical corporations and remit the data to the
Department of Energy within 90 days of the request.
(c) Establish a system for tracking and verifying renewable energy
credits that, through the use of independently audited data,
verifies the generation and delivery of electricity associated with
each renewable energy credit and protects against multiple counting
of the same renewable energy credit. The Department of Energy shall
consult with other western states and with the Western Electricity
Coordinating Council in the development of this system.
(d) Certify, for purposes of compliance with the renewable
portfolio standard requirements by a retail seller, the eligibility
of renewable energy credits associated with deliveries of electricity
by an eligible renewable energy resource to a local publicly owned
electric utility, if the Department of Energy determines that the
following conditions have been satisfied:
(1) The local publicly owned electric utility that is procuring
the electricity is in compliance with the requirements of Section
387.
(2) The local publicly owned electric utility has established an
annual renewables portfolio standard target comparable to those
applicable to an electrical corporation, is procuring sufficient
eligible renewable energy resources to satisfy the targets, and will
not fail to satisfy the targets in the event that the renewable
energy credit is sold to another retail seller.
SEC. 371. Section 399.15 of the Public Utilities Code is amended
to read:
399.15. (a) In order to fulfill unmet long-term resource needs,
the commission shall establish a renewables portfolio standard
requiring all electrical corporations to procure a minimum quantity
of electricity generated by eligible renewable energy resources as a
specified percentage of total kilowatthours sold to their retail
end-use customers each calendar year, subject to limits on the total
amount of costs expended above the market prices determined in
subdivision (c), to achieve the targets established under this
article.
(b) The commission shall implement annual procurement targets for
each retail seller as follows:
(1) Each retail seller shall, pursuant to subdivision (a),
increase its total procurement of eligible renewable energy resources
by at least an additional 1 percent of retail sales per year so that
20 percent of its retail sales are procured from eligible renewable
energy resources no later than December 31, 2010. A retail seller
with 20 percent of retail sales procured from eligible renewable
energy resources in any year shall not be required to increase its
procurement of renewable energy resources in the following year.
(2) For purposes of setting annual procurement targets, the
commission shall establish an initial baseline for each retail seller
based on the actual percentage of retail sales procured from
eligible renewable energy resources in 2001, and to the extent
applicable, adjusted going forward pursuant to Section 399.12.
(3)
Only for purposes of establishing these targets, the commission shall
include all electricity sold to retail customers by the Department
of Water Resources pursuant to Section 80100 of the Water Code in the
calculation of retail sales by an electrical corporation.
(4) In the event that a retail seller fails to procure sufficient
eligible renewable energy resources in a given year to meet any
annual target established pursuant to this subdivision, the retail
seller shall procure additional eligible renewable energy resources
in subsequent years to compensate for the shortfall, subject to the
limitation on costs for electrical corporations established pursuant
to subdivision (d).
(c) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with eligible renewable energy resources, in consideration
of the following:
(1) 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.
(2) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities.
(3) The value of different products including baseload, peaking,
and as-available electricity.
(d) The commission shall establish, for each electrical
corporation, a limitation on the total costs expended above the
market prices determined in subdivision (c) for the procurement of
eligible renewable energy resources to achieve the annual procurement
targets established under this article.
(1) The cost limitation shall be equal to the amount of funds
transferred to each electrical corporation by the former State Energy
Resources Conservation and Development Commission pursuant to
subdivision (b) of Section 25743 of the Public Resources Code and the
51.5 percent of the funds which would have been collected through
January 1, 2012, from the customers of the electrical corporation
based on the renewable energy public goods charge in effect as of
January 1, 2007.
(2) The above-market costs of a contract selected by an electrical
corporation may be counted toward the cost limitation if all of the
following conditions are satisfied:
(A) The contract has been approved by the commission and was
selected through a competitive solicitation pursuant to the
requirements of subdivision (d) of Section 399.14.
(B) The contract covers a duration of no less than 10 years.
(C) The contracted project is a new or repowered facility
commencing commercial operations on or after January 1, 2005.
(D) No purchases of renewable energy credits may be eligible for
consideration as an above-market cost.
(E) The above-market costs of a contract do not include any
indirect expenses including imbalance energy charges, sale of excess
energy, decreased generation from existing resources, or transmission
upgrades.
(3) If the cost limitation for an electrical corporation is
insufficient to support the total costs expended above the market
prices determined in subdivision (c) for the procurement of eligible
renewable energy resources satisfying the conditions of paragraph
(2), the commission shall allow the electrical corporation to limit
its procurement to the quantity of eligible renewable energy
resources that can be procured at or below the market prices
established in subdivision (c).
(4) This section does not prevent an electrical corporation from
voluntarily proposing to procure eligible renewable energy resources
at above-market prices that are not counted toward the cost
limitation. Any voluntary procurement involving above-market costs
shall be subject to commission approval prior to the expense being
recovered in rates.
(e) The establishment of a renewables portfolio standard shall not
constitute implementation by the commission of the federal Public
Utility Regulatory Policies Act of 1978 (Public Law 95-617).
(f) The commission shall consult with the Department of Energy in
calculating market prices under subdivision (c) and establishing
other renewables portfolio standard policies.
SEC. 372. Section 399.16 of the Public Utilities Code is amended
to read:
399.16. (a) The commission, by rule, may authorize the use of
renewable energy credits to satisfy the requirements of the
renewables portfolio standard established pursuant to this article,
subject to the following conditions:
(1) Prior to authorizing any renewable energy credit to be used
toward satisfying annual procurement targets, the commission and the
Department of Energy, by action of the California Energy Board, shall
conclude that the tracking system established pursuant to
subdivision (c) of Section 399.13, is operational, is capable of
independently verifying the electricity generated by an eligible
renewable energy resource and delivered to the retail seller, and can
ensure that renewable energy credits shall not be double counted by
any seller of electricity within the service territory of the Western
Electricity Coordinating Council (WECC).
(2) A renewable energy credit shall be counted only once for
compliance with the renewables portfolio standard of this state or
any other state, or for verifying retail product claims in this state
or any other state.
(3) The electricity is delivered to a retail seller, the
Independent System Operator, or a local publicly owned electric
utility.
(4) All revenues received by an electrical corporation for the
sale of a renewable energy credit shall be credited to the benefit of
ratepayers.
(5) Renewable energy credits shall not be created for electricity
generated pursuant to any electricity purchase contract with a
retail seller or a local publicly owned electric utility executed
before January 1, 2005, unless the contract contains explicit terms
and conditions specifying the ownership or disposition of those
credits. Deliveries under those contracts shall be tracked through
the accounting system described in subdivision (b) of Section 399.13
and included in the baseline quantity of eligible renewable energy
resources of the purchasing retail seller pursuant to Section 399.15.
(6) Renewable energy credits shall not be created for electricity
generated under any electricity purchase contract executed after
January 1, 2005, pursuant to the federal Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Deliveries under
the electricity purchase contracts shall be tracked through the
accounting system described in subdivision (b) of Section 399.12 and
count toward the renewables portfolio standard obligations of the
purchasing retail seller.
(7) The commission may limit the quantity of renewable energy
credits that may be procured unbundled from electricity generation by
any retail seller, to meet the requirements of this article.
(8) An electrical corporation shall not be obligated to procure
renewable energy credits to satisfy the requirements of this article
in the event that the total costs expended above the applicable
market prices for the procurement of eligible renewable energy
resources exceeds the cost limitation established pursuant to
subdivision (d) of Section 399.15.
(9) Any additional condition that the commission determines is
reasonable.
(b) The commission shall allow an electrical corporation to
recover the reasonable costs of purchasing renewable energy credits
in rates.
SEC. 373. Section 399.17 of the Public Utilities Code is amended
to read:
399.17. (a) Subject to the provisions of this section, the
requirements of this article apply to an electrical corporation with
60,000 or fewer customer accounts in California that serves retail
end-use customers outside California.
(b) For an electrical corporation with 60,000 or fewer customer
accounts in California that serves retail end-use customers outside
California, an eligible renewable energy resource includes a facility
that is located outside California, if the facility is connected to
the Western Electricity Coordinating Council (WECC) transmission
system, provided all of the following conditions are met:
(1) The electricity generated by the facility is procured by the
electrical corporation on behalf of its California customers and is
not used to fulfill renewable energy procurement requirements in
other states.
(2) The electrical corporation participates in, and complies with,
the accounting system administered by the Department of Energy, by
action of the California Energy Board, pursuant to subdivision (b) of
Section 399.13.
(3) The Department of Energy, by action of the California Energy
Board, verifies that the electricity generated by the facility is
eligible to meet the annual procurement targets of this article.
(c) The commission shall determine the annual procurement targets
for an electrical corporation with 60,000 or fewer customer accounts
in California that serves retail end-use customers outside
California, as a specified percentage of total kilowatthours sold by
the electrical corporation to its retail end-use customers in
California in a calendar year.
(d) An electrical corporation with 60,000 or fewer customer
accounts in California that serves retail end-use customers outside
California, may use an integrated resource plan prepared in
compliance with the requirements of another state utility regulatory
commission, to fulfill the requirement to prepare a renewable energy
procurement plan pursuant to this article, provided the plan meets
the requirements of Sections 399.11, 399.12, 399.13, and 399.14, as
modified by this section.
(e) Procurement and administrative costs associated with long-term
contracts entered into by an electrical corporation with 60,000 or
fewer customer accounts in California that serves retail end-use
customers outside California, for eligible renewable energy resources
pursuant to this article, at or below the market price determined by
the commission pursuant to subdivision (c) of Section 399.15, shall
be deemed reasonable per se, and shall be recoverable in rates of the
electrical corporation's California customers, provided the costs
are not recoverable in rates in other states served by the electrical
corporation.
SEC. 374. Section 411 is added to the Public Utilities Code, to
read:
411. All fees collected by the commission from electrical
corporations and gas corporations to support those functions of the
commission in reviewing and issuing certificates of public
convenience and necessity that are transferred to the California
Energy Board within the Department of Energy pursuant to subdivision
(b) of Section 1001, shall be identified and transferred to the
Secretary of Energy, at least quarterly, upon the assumption by the
department of those functions.
SEC. 375. Section 454.5 of the Public Utilities Code is amended to
read:
454.5. (a) The commission shall specify the allocation of
electricity, including quantity, characteristics, and duration of
electricity delivery, that the Department of Water Resources shall
provide under its power purchase agreements to the customers of each
electrical corporation, which shall be reflected in the electrical
corporation's proposed procurement plan. Each electrical corporation
shall file a proposed procurement plan with the commission not later
than 60 days after the commission specifies the allocation of
electricity. The proposed procurement plan shall specify the date
that the electrical corporation intends to resume procurement of
electricity for its retail customers, consistent with its obligation
to serve. After the commission's adoption of a procurement plan, the
commission shall allow not less than 60 days before the electrical
corporation resumes procurement pursuant to this section.
(b) An electrical corporation's proposed procurement plan shall
include, but not be limited to, all of the following:
(1) An assessment of the price risk associated with the electrical
corporation's portfolio, including any utility-retained generation,
existing power purchase and exchange contracts, and proposed
contracts or purchases under which an electrical corporation will
procure electricity, electricity demand reductions, and
electricity-related products and the remaining open position to be
served by spot market transactions.
(2) A definition of each electricity product, electricity-related
product, and procurement related financial product, including support
and justification for the product type and amount to be procured
under the plan.
(3) The duration of the plan.
(4) The duration, timing, and range of quantities of each product
to be procured.
(5) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services,
including the format and criteria of that procurement process.
(6) An incentive mechanism, if any incentive mechanism is
proposed, including the type of transactions to be covered by that
mechanism, their respective procurement benchmarks, and other
parameters needed to determine the sharing of risks and benefits.
(7) The upfront standards and criteria by which the acceptability
and eligibility for rate recovery of a proposed procurement
transaction will be known by the electrical corporation prior to
execution of the transaction. This shall include an expedited
approval process for the commission's review of proposed contracts
and subsequent approval or rejection thereof. The electrical
corporation shall propose alternative procurement choices in the
event a contract is rejected.
(8) Procedures for updating the procurement plan.
(9) A showing that the procurement plan will achieve the
following:
(A) The electrical corporation will, in order to fulfill its unmet
resource needs and in furtherance of Section 701.3, until a 20
percent renewable resources portfolio is achieved, procure renewable
energy resources with the goal of ensuring that at least an
additional 1 percent per year of the electricity sold by the
electrical corporation is generated from renewable energy resources,
provided sufficient funds are made available pursuant to Sections
399.6 and 399.15, to cover the above-market costs for new renewable
energy resources.
(B) The electrical corporation will create or maintain a
diversified procurement portfolio consisting of both short-term and
long-term electricity and electricity-related and demand reduction
products.
(C) The electrical corporation will first meet its unmet resource
needs through all available energy efficiency and demand reduction
resources that are cost effective, reliable, and feasible.
(10) The electrical corporation's risk management policy,
strategy, and practices, including specific measures of price
stability.
(11) A plan to achieve appropriate increases in diversity of
ownership and diversity of fuel supply of nonutility electrical
generation.
(12) A mechanism for recovery of reasonable administrative costs
related to procurement in the generation component of rates.
(c) The commission shall review and accept, modify, or reject each
electrical corporation's procurement plan. The commission's review
shall consider each electrical corporation's individual procurement
situation, and shall give strong consideration to that situation in
determining which one or more of the features set forth in this
subdivision shall apply to that electrical corporation. A procurement
plan approved by the commission shall contain one or more of the
following features, provided that the commission may not approve a
feature or mechanism for an electrical corporation if it finds that
the feature or mechanism would impair the restoration of an
electrical corporation's creditworthiness or would lead to a
deterioration of an electrical corporation's creditworthiness:
(1) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services. The
commission shall specify the format of that procurement process, as
well as criteria to ensure that the auction process is open and
adequately subscribed. Any purchases made in compliance with the
commission-authorized process shall be recovered in the generation
component of rates.
(2) An incentive mechanism that establishes a procurement
benchmark or benchmarks and authorizes the electrical corporation to
procure from the market, subject to comparing the electrical
corporation's performance to the commission-authorized benchmark or
benchmarks. The incentive mechanism shall be clear, achievable, and
contain quantifiable objectives and standards. The incentive
mechanism shall contain balanced risk and reward incentives that
limit the risk and reward of an electrical corporation.
(3) Upfront achievable standards and criteria by which the
acceptability and eligibility for rate recovery of a proposed
procurement transaction will be known by the electrical corporation
prior to the execution of the bilateral contract for the transaction.
The commission shall provide for expedited review and either approve
or reject the individual contracts submitted by the electrical
corporation to ensure compliance with its procurement plan. To the
extent the commission rejects a proposed contract pursuant to this
criteria, the commission shall designate alternative procurement
choices obtained in the procurement plan that will be recoverable for
ratemaking purposes.
(d) A procurement plan approved by the commission shall accomplish
each of the following objectives:
(1) Enable the electrical corporation to fulfill its obligation to
serve its customers at just and reasonable rates.
(2) Eliminate the need for after-the-fact reasonableness reviews
of an electrical corporation's actions in compliance with an approved
procurement plan, including resulting electricity procurement
contracts, practices, and related expenses. However, the commission
may establish a regulatory process to verify and ensure that each
contract was administered in accordance with the terms of the
contract, and contract disputes which may arise are reasonably
resolved.
(3) Ensure timely recovery of prospective procurement costs
incurred pursuant to an approved procurement plan. The commission
shall establish rates based on forecasts of procurement costs adopted
by the commission, actual procurement costs incurred, or combination
thereof, as determined by the commission. The commission shall
establish power procurement balancing accounts to track the
differences between recorded revenues and costs incurred pursuant to
an approved procurement plan. The commission shall review the power
procurement balancing accounts, not less than semiannually, and shall
adjust rates or order refunds, as necessary, to promptly amortize a
balancing account, according to a schedule determined by the
commission. Until January 1, 2006, the commission shall ensure that
any overcollection or undercollection in the power procurement
balancing account does not exceed 5 percent of the electrical
corporation's actual recorded generation revenues for the prior
calendar year excluding revenues collected for the Department of
Water Resources. The commission shall determine the schedule for
amortizing the overcollection or undercollection in the balancing
account to ensure that the 5 percent threshold is not exceeded. After
January 1, 2006, this adjustment shall occur when deemed appropriate
by the commission consistent with the objectives of this section.
(4) Moderate the price risk associated with serving its retail
customers, including the price risk embedded in its long-term supply
contracts, by authorizing an electrical corporation to enter into
financial and other electricity-related product contracts.
(5) Provide for just and reasonable rates, with an appropriate
balancing of price stability and price level in the electrical
corporation's procurement plan.
(e) The commission shall provide for the periodic review and
prospective modification of an electrical corporation's procurement
plan.
(f) The commission may engage an independent consultant or
advisory service to evaluate risk management and strategy. The
reasonable costs of any consultant or advisory service is a
reimbursable expense and eligible for funding pursuant to Section
631.
(g) The commission shall adopt appropriate procedures to ensure
the confidentiality of any market sensitive information submitted in
an electrical corporation's proposed procurement plan or resulting
from or related to its approved procurement plan, including, but not
limited to, proposed or executed power purchase agreements, data
request responses, or consultant reports, or any combination,
provided that the Office of Ratepayer Advocates and other consumer
groups that are nonmarket participants shall be provided access to
this information under confidentiality procedures authorized by the
commission.
(h) This section does not alter, modify, or amend the commission'
s oversight of affiliate transactions under its rules and decisions
or the commission's existing authority to investigate and penalize an
electrical corporation's alleged fraudulent activities, or to
disallow costs incurred as a result of gross incompetence, fraud,
abuse, or similar grounds. This section does not expand, modify, or
limit the Department of Energy's existing authority and
responsibilities as set forth in Sections 25216, 25216.5, and 25323
of the Public Resources Code.
(i) An electrical corporation that serves less than 500,000
electric retail customers within the state may file with the
commission a request for exemption from this section, which the
commission shall grant upon a showing of good cause.
(j) (1) Prior to its approval pursuant to Section 851 of any
divestiture of generation assets owned by an electrical corporation
on or after September 24, 2002, the commission shall determine the
impact of the proposed divestiture on the electrical corporation's
procurement rates and shall approve a divestiture only to the extent
it finds, taking into account the effect of the divestiture on
procurement rates, that the divestiture is in the public interest and
will result in net ratepayer benefits.
(2) Any electrical corporation's procurement necessitated as a
result of the divestiture of generation assets on or after September
24, 2002, shall be subject to the mechanisms and procedures set forth
in this section only if its actual cost is less than the recent
historical cost of the divested generation assets.
(3) Notwithstanding paragraph (2), the commission may deem
proposed procurement eligible to use the procedures in this section
upon its approval of asset divestiture pursuant to Section 851.
SEC. 376. Section 464 of the Public Utilities Code is amended to
read:
464. (a) Reasonable expenditures by transmission owners that are
electrical corporations to plan, design, and engineer
reconfiguration, replacement, or expansion of transmission facilities
are in the public interest and are deemed prudent if made for the
purpose of facilitating competition in electric generation markets,
ensuring open access and comparable service, or maintaining or
enhancing reliability, whether or not these expenditures are for
transmission facilities that become operational.
(b) The commission and the Office of Energy Market Oversight in
the Department of Energy shall jointly facilitate the efforts of the
state's transmission owning electrical corporations to obtain
authorization from the Federal Energy Regulatory Commission to
recover reasonable expenditures made for the purposes stated in
subdivision (a).
(c) This section does not alter or affect the recovery of the
reasonable costs of other electric facilities in rates pursuant to
the commission's existing ratemaking authority under this code or
pursuant to the Federal Power Act (41 Stat. 1063; 16 U.S.C. Secs.
791a, et seq.). The commission may periodically review and adjust
depreciation schedules and rates authorized for an electric plant
that is under the jurisdiction of the commission and owned by an
electrical corporation and periodically review and adjust
depreciation schedules and rates authorized for a gas plant that is
under the jurisdiction of the commission and owned by a gas
corporation, consistent with this code.
SEC. 377. Section 848.1 of the Public Utilities Code is amended to
read:
848.1. (a) No later than 120 days after the effective date of
this article, and from time to time thereafter, the recovery
corporation shall apply to the commission for a determination that
some or all of the recovery corporation's recovery costs may be
recovered through fixed recovery amounts, which would be recovery
property under this article, and that any portion of the recovery
corporation's federal and State of California income and franchise
taxes associated with those fixed recovery amounts and not financed
from proceeds of recovery bonds be recovered through fixed recovery
tax amounts. The recovery corporation may request this determination
by the commission in a separate proceeding or in an existing
proceeding, or both. The recovery corporation shall in its
application specify that consumers within its service territory would
benefit from reduced rates on a present value basis through the
issuance of recovery bonds. The commission shall designate fixed
recovery amounts and any associated fixed recovery tax amounts as
recoverable in one or more financing orders if the commission
determines, as part of its findings in connection with the financing
order, that the designation of the fixed recovery amounts and any
associated fixed recovery tax amounts, and the issuance of recovery
bonds in connection with fixed recovery amounts, would reduce the
rates on a present value basis that consumers within the recovery
corporation's service territory would pay if the financing order were
not adopted. Fixed recovery amounts and any associated fixed
recovery tax amounts shall only be imposed on existing and future
consumers in the service territory. Consumers within the service
territory shall continue to pay fixed recovery amounts and any
associated fixed tax recovery amounts until the recovery bonds are
paid in full by the financing entity. Once the recovery bonds have
been paid in full, the payment by consumers of fixed recovery amounts
and fixed recovery tax amounts shall terminate.
(b) The commission shall establish an effective mechanism that
ensures recovery of recovery costs through fixed recovery amounts and
any associated fixed recovery tax amounts from existing and future
consumers in the service territory, provided that the costs shall not
be recoverable from any of
the following:
(1) New load or incremental load of an existing consumer of the
recovery corporation where the load is being met through a direct
transaction and the transaction does not require the use of
transmission or distribution facilities owned by the recovery
corporation.
(2) Customer generation departing load that is exempt from
Department of Water Resources power charges pursuant to the
commission's Decision No. 03-04-030, as modified by Decision No.
03-04-041, and as clarified and affirmed by Decision No. 03-05-039,
except that the load shall pay the costs as a component of and in
proportion to any purchase of electricity delivered by the recovery
corporation under standby or other service made following its
departure.
(3) The Department of Water Resources, with respect to the
pumping, generation, and transmission facilities and operations of
the State Water Resources Development System, except to the extent
that system facilities receive electric service from the recovery
corporation on or after December 19, 2003, under a
commission-approved tariff.
(4) Retail electric load, continuously served by a local publicly
owned electric utility from January 1, 2000, through the effective
date of the act adding this section.
(5) Load that subsequently take electric service from a city where
all the following conditions are met:
(A) The new load is from locations that never received electric
service from the recovery corporation.
(B) The city owns and operates the local publicly owned electric
utility.
(C) The local publicly owned electric utility served more than 95
percent of the customers receiving electric service residing within
the city limits prior to December 19, 2003.
(D) The city annexed the territory in which the load is located on
or after December 19, 2003.
(E) Following annexation, the city provides all municipal services
to the annexed territory that the city provides to other territory
within the city limits, including electric service.
(F) The total load exempt from paying fixed recovery amounts and
associated fixed recovery tax amounts pursuant to subparagraphs (A)
through (D), inclusive, does not exceed 50 megawatts, as determined
by the commission, and any load above the 50 megawatt exemption
amount shall be responsible for paying recovery amounts and
associated fixed recovery tax amounts, except as provided in
subdivision (c).
(c) Except as provided in paragraphs (4) and (5) of subdivision
(b), the commission shall determine the extent to which fixed
recovery amounts and any associated fixed recovery tax amounts are
recoverable from new municipal load, consistent with the commission's
determination in the limited rehearing granted in Decision
03-08-076. The determination of the commission shall be made on the
earlier of the date it adopts a financing order or December 31, 2004.
(d) Except as provided in paragraphs (4) and (5) of subdivision
(b) and in subdivision (c), the obligation to pay fixed recovery
amounts and any associated fixed recovery tax amounts cannot be
avoided by the formation of a local publicly owned electric utility
on or after December 19, 2003, or by annexation of any portion of the
service territory of the recovery corporation by an existing local
publicly owned electric utility.
(e) Recovery bonds authorized by the commission's financing orders
may be issued in one or more series on or before December 31, 2006.
(f) The commission may issue financing orders in accordance with
this article to facilitate the recovery, financing, or refinancing of
recovery costs. A financing order may be adopted only upon the
application of the recovery corporation and shall become effective in
accordance with its terms only after the recovery corporation files
with the commission the recovery corporation's written consent to all
terms and conditions of the financing order. A financing order may
specify how amounts collected from a consumer shall be allocated
between fixed recovery amounts, any associated fixed recovery tax
amounts, and other charges.
(g) Notwithstanding Section 455.5 or 1708, or any other provision
of law, except as otherwise provided in Section 848.7 or in this
subdivision with respect to recovery property that has been made the
basis for the issuance of recovery bonds and with respect to any
associated fixed recovery tax amounts, the financing order, the fixed
recovery amounts and any associated fixed recovery tax amounts shall
be irrevocable, and the commission shall not have authority either
by rescinding, altering, or amending the financing order or
otherwise, to revalue or revise for ratemaking purposes, the recovery
costs or the costs of recovering, financing, or refinancing the
recovery costs, determine that the fixed recovery amounts, any
associated fixed recovery tax amounts or rates are unjust or
unreasonable, or in any way reduce or impair the value of recovery
property or of the right to receive any associated fixed recovery tax
amounts either directly or indirectly by taking fixed recovery
amounts or any associated fixed recovery tax amounts into account
when setting other rates for the recovery corporation or when setting
charges for the Department of Water Resources; nor shall the amount
of revenues arising with respect thereto be subject to reduction,
impairment, postponement, or termination. Except as otherwise
provided in this subdivision, the State of California does hereby
pledge and agree with the recovery corporation, owners of recovery
property, and holders of recovery bonds that the state shall neither
limit nor alter the fixed recovery amounts, any associated fixed
recovery tax amounts, recovery property, financing orders, or any
rights thereunder until the recovery bonds, together with the
interest thereon, are fully paid and discharged, and any associated
fixed recovery tax amounts have been satisfied or, in the
alternative, have been refinanced through an additional issue of
recovery bonds; provided nothing contained in this section shall
preclude the limitation or alteration if and when adequate provision
shall be made by law for the protection of the recovery corporation,
owners, and holders. The financing entity is authorized to include
this pledge and undertaking for the state in these recovery bonds.
Notwithstanding any other provision of this section, the commission
shall approve adjustments to the fixed recovery amounts and any
associated fixed recovery tax amounts as may be necessary to ensure
timely recovery of all recovery costs that are the subject of the
pertinent financing order, and the costs of capital associated with
the recovery, financing, or refinancing thereof, including servicing
and retiring the recovery bonds contemplated by the financing order.
When setting other rates for the recovery corporation, this
subdivision does not prevent the commission from taking into account
either of the following:
(1) Any collection of fixed recovery amounts in excess of amounts
actually required to pay recovery costs financed or refinanced by
recovery bonds.
(2) Any collection of fixed recovery tax amounts in excess of
amounts actually required to pay federal and State of California
income and franchise taxes associated with fixed recovery amounts;
provided that this would not result in a recharacterization of the
tax, accounting, and other intended characteristics of the financing,
including, but not limited to, either of the following:
(A) Treating the recovery bonds as debt of the recovery
corporation or its affiliates for federal income tax purposes.
(B) Treating the transfer of the recovery property by the recovery
corporation as a true sale for bankruptcy purposes.
(h) (1) Financing orders issued under this article do not
constitute a debt or liability of the state or of any political
subdivision thereof, and do not constitute a pledge of the full faith
and credit of the state or any of its political subdivisions, but
are payable solely from the funds provided therefor under this
article and shall be consistent with Sections 1 and 18 of Article XVI
of the California Constitution. This subdivision shall in no way
preclude bond guarantees or enhancements pursuant to this article.
All recovery bonds shall contain on the face thereof a statement to
the following effect: "Neither the full faith and credit nor the
taxing power of the State of California is pledged to the payment of
the principal of, or interest on, this bond."
(2) The issuance of recovery bonds under this article shall not
directly, indirectly, or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation therefor or to make any appropriation for their payment.
(i) The commission shall establish procedures for the expeditious
processing of applications for financing orders, including the
approval or disapproval thereof within 120 days of the recovery
corporation making application therefor. The commission shall provide
in any financing order for a procedure for the expeditious approval
by the commission of periodic adjustments to the fixed recovery
amounts and any associated fixed recovery tax amounts that are the
subject of the pertinent financing order, as required by subdivision
(g). The procedure shall require the commission to determine whether
the adjustments are required on each anniversary of the issuance of
the financing order, and at the additional intervals as may be
provided for in the financing order, and for the adjustments, if
required, to be approved within 90 days of each anniversary of the
issuance of the financing order, or of each additional interval
provided for in the financing order.
(j) Fixed recovery amounts are recovery property when, and to the
extent that, a financing order authorizing the fixed recovery amounts
has become effective in accordance with this article, and the
recovery property shall thereafter continuously exist as property for
all purposes with all of the rights and privileges of this article
for the period and to the extent provided in the financing order, but
in any event until the recovery bonds are paid in full, including
all principal, interest, premium, costs, and arrearages thereon.
(k) This article and any financing order made pursuant to this
article do not amend, reduce, modify, or otherwise affect the right
of the Department of Water Resources to recover its revenue
requirements and to receive the charges that it is to recover and
receive pursuant to Division 27 (commencing with Section 80000) of
the Water Code, or pursuant to any agreement entered into by the
commission and the Department of Water Resources pursuant to that
division.
SEC. 378. Section 1822 of the Public Utilities Code is amended to
read:
1822. (a) Any computer model that is the basis for any testimony
or exhibit in a hearing or proceeding before the commission shall be
available to, and subject to verification by, the commission and
parties to the hearing or proceedings to the extent necessary for
cross-examination or rebuttal, subject to applicable rules of
evidence, except that verification is not required for any
electricity demand model or forecast prepared by the Department of
Energy pursuant to Section 25309 or 25402.1 of the Public Resources
Code and approved and adopted after a hearing during which testimony
was offered subject to cross-examination. The commission shall afford
each of these electricity demand models or forecasts the evidentiary
weight it determines appropriate. This subdivision does not require
the department to approve or adopt any electricity demand model or
forecast.
(b) Testimony presented in a hearing or proceeding before the
commission that is based in whole, or in part, on a computer model
shall include a listing of all the equations and assumptions built
into the model.
(c) A database that is used for any testimony or exhibit in a
hearing or proceeding before the commission shall be reasonably
accessible to the commission staff and parties to the hearing or
proceeding to the extent necessary for cross-examination or rebuttal,
subject to applicable rules of evidence, as applied in commission
proceedings.
(d) The commission shall adopt rules and procedures to meet the
requirements specified in subdivisions (a), (b), and (c). These rules
shall include procedural safeguards that protect databases and
models not owned by the public utility.
(e) The commission shall establish appropriate procedures for
determining the appropriate level of compensation for a party's
access.
(f) Each party shall have access to the computer programs and
models of each other party to the extent provided by Section 1822.
The commission shall not require a utility to provide a remote
terminal or other direct physical link to the computer systems of a
utility to a third party.
(g) The commission shall verify, validate, and review the computer
models of any electric corporation that are used for the purpose of
planning, operating, constructing, or maintaining the corporation's
electricity transmission system, and that are the basis for testimony
and exhibits in hearings and proceedings before the commission.
(h) The transmission computer models shall be available to, and
subject to verification by, each party to a commission proceeding in
accordance with subdivision (a) of Section 1822, and regulations
adopted pursuant to subdivision (d) of Section 1822.
SEC. 379. Section 2774.6 of the Public Utilities Code is amended
to read:
2774.6. The commission, in consultation with the Department of
Energy, shall develop a program for residential and commercial
customer air-conditioning load control, as an element of each
electrical corporation's tariffed service offerings paid for with
electric rates. The goal of the program shall be to contribute to the
adequacy of electricity supply and to help customers reduce their
electric bills in a cost-effective manner. The program may include
peak load reduction programs for residential and commercial
air-conditioning systems, if the commission determines that the
inclusion would be cost-effective.
SEC. 380. Section 2827 of the Public Utilities
Code is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering combined with net surplus compensation,
co-energy metering, and wind energy co-metering for eligible
customer-generators is one way to encourage substantial private
investment in renewable energy resources, stimulate in-state economic
growth, reduce demand for electricity during peak consumption
periods, help stabilize California's energy supply infrastructure,
enhance the continued diversification of California's energy resource
mix, reduce interconnection and administrative costs for electricity
suppliers, and encourage conservation and efficiency.
(b) As used in this section, the following terms have the
following meanings:
(1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
(2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
(3) "Electric utility" means an electrical corporation, a local
publicly owned electric utility, or an electrical cooperative, or any
other entity, except an electric service provider, that offers
electrical service. This section shall not apply to a local publicly
owned electric utility that serves more than 750,000 customers and
that also conveys water to its customers.
(4) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electric
utility, who uses a solar or a wind turbine electrical generating
facility, or a hybrid system of both, with a capacity of not more
than one megawatt that is located on the customer's owned, leased, or
rented premises, and is interconnected and operates in parallel with
the electric grid, and is intended primarily to offset part or all
of the customer's own electrical requirements.
(5) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivisions (c) and (h).
(6) "Net surplus customer-generator" means an eligible
customer-generator that generates more electricity during a 12-month
period than is supplied by the electric utility to the eligible
customer-generator during the same 12-month period.
(7) "Net surplus electricity" means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed by
that eligible customer-generator.
(8) "Net surplus electricity compensation" means a per
kilowatthour rate offered by the electric utility to the net surplus
customer-generator for net surplus electricity that is set by the
ratemaking authority pursuant to subdivision (h).
(9) "Ratemaking authority" means, for an electrical corporation or
electrical cooperative, the commission, and for a local publicly
owned electric utility, the local elected body responsible for
setting the rates of the local publicly owned utility.
(10) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period is as described
in subdivision (h). Wind energy co-metering shall be accomplished
pursuant to Section 2827.8.
(c) (1) Every electric utility shall develop a standard contract
or tariff providing for net energy metering, and shall make this
standard contract or tariff available to eligible
customer-generators, upon request, on a first-come-first-served basis
until the time that the total rated generating capacity used by
eligible customer-generators exceeds 2.5 percent of the electric
utility's aggregate customer peak demand. Net energy metering shall
be accomplished using a single meter capable of registering the flow
of electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the eligible customer-generator, at the expense
of the electric utility, and the additional metering shall be used
only to provide the information necessary to accurately bill or
credit the eligible customer-generator pursuant to subdivision (h),
or to collect solar or wind electric generating system performance
information for research purposes. If the existing electrical meter
of an eligible customer-generator is not capable of measuring the
flow of electricity in two directions, the eligible
customer-generator shall be responsible for all expenses involved in
purchasing and installing a meter that is able to measure electricity
flow in two directions. If an additional meter or meters are
installed, the net energy metering calculation shall yield a result
identical to that of a single meter. An eligible customer-generator
that is receiving service other than through the standard contract or
tariff may elect to receive service through the standard contract or
tariff until the electric utility reaches the generation limit set
forth in this paragraph. Once the generation limit is reached, only
eligible customer-generators that had previously elected to receive
service pursuant to the standard contract or tariff have a right to
continue to receive service pursuant to the standard contract or
tariff. Eligibility for net energy metering does not limit an
eligible customer-generator's eligibility for any other rebate,
incentive, or credit provided by the electric utility, or pursuant to
any governmental program, including rebates and incentives provided
pursuant to the California Solar Initiative.
(2) (A) On an annual basis, beginning in 2003, every electric
utility shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area and the net surplus electricity purchased by
the electric utility pursuant to this section.
(B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electric corporation,
local publicly owned electric utility, or electrical cooperative, in
which the eligible customer-generator has net energy metering.
(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electric
utilities, and for using that information to determine when, pursuant
to paragraphs (1) and (3), an electric utility is not obligated to
provide net energy metering to additional eligible
customer-generators in its service area.
(3) An electric utility is not obligated to provide net energy
metering to additional eligible customer-generators in its service
area when the combined total peak demand of all electricity used by
eligible customer-generators served by all the electric utilities in
that service area furnishing net energy metering to eligible
customer-generators exceeds 2.5 percent of the aggregate customer
peak demand of those electric utilities.
(4) By January 1, 2010, the commission, in consultation with the
Department of Energy, shall submit a report to the Governor and the
Legislature on the costs and benefits of net energy metering, wind
energy co-metering, and co-energy metering to participating customers
and nonparticipating customers and with options to replace the
economic costs and benefits of net energy metering, wind energy
co-metering, and co-energy metering with a mechanism that more
equitably balances the interests of participating and
nonparticipating customers, and that incorporates the findings of the
report on economic and environmental costs and benefits of net
metering required by subdivision (n).
(d) Every electric utility shall make all necessary forms and
contracts for net energy metering and net surplus electricity
compensation service available for download from the Internet.
(e) (1) Every electric utility shall ensure that requests for
establishment of net energy metering and net surplus electricity
compensation are processed in a time period not exceeding that for
similarly situated customers requesting new electric service, but not
to exceed 30 working days from the date it receives a completed
application form for net energy metering service or net surplus
electricity compensation, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction.
(2) Every electric utility shall ensure that requests for an
interconnection agreement from an eligible customer-generator are
processed in a time period not to exceed 30 working days from the
date it receives a completed application form from the eligible
customer-generator for an interconnection agreement.
(3) If an electric utility is unable to process a request within
the allowable timeframe pursuant to paragraph (1) or (2), it shall
notify the eligible customer-generator and the ratemaking authority
of the reason for its inability to process the request and the
expected completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365 with an electric
service provider that does not provide distribution service for the
direct transactions, the electric utility that provides distribution
service for the eligible customer-generator is not obligated to
provide net energy metering or net surplus electricity compensation
to the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
service provider, and the customer is an eligible customer-generator,
the electric utility that provides distribution service for the
direct transactions may recover from the customer's electric service
provider the incremental costs of metering and billing service
related to net energy metering and net surplus electricity
compensation in an amount set by the ratemaking authority.
(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract or
tariff shall be identical, with respect to rate structure, all
retail rate components, and any monthly charges, to the contract or
tariff to which the same
customer would be assigned if the customer did not use an eligible
solar or wind electrical generating facility, except that eligible
customer-generators shall not be assessed standby charges on the
electrical generating capacity or the kilowatthour production of an
eligible solar or wind electrical generating facility. The charges
for all retail rate components for eligible customer-generators shall
be based exclusively on the customer-generator's net kilowatthour
consumption over a 12-month period, without regard to the eligible
customer-generator's choice as to from whom it purchases electricity
that is not self-generated. Any new or additional demand charge,
standby charge, customer charge, minimum monthly charge,
interconnection charge, or any other charge that would increase an
eligible customer-generator's costs beyond those of other customers
who are not eligible customer-generators in the rate class to which
the eligible customer-generator would otherwise be assigned if the
customer did not own, lease, rent, or otherwise operate an eligible
solar or wind electrical generating facility is contrary to the
intent of this section, and shall not form a part of net energy
metering contracts or tariffs.
(h) For eligible customer-generators, the net energy metering
calculation shall be made by measuring the difference between the
electricity supplied to the eligible customer-generator and the
electricity generated by the eligible customer-generator and fed back
to the electric grid over a 12-month period. The following rules
shall apply to the annualized net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electric utility, and at each
anniversary date thereafter, be billed for electricity used during
that 12-month period. The electric utility shall determine if the
eligible residential or small commercial customer-generator was a net
consumer or a net surplus customer-generator during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric utility exceeds the
electricity generated by the eligible residential or small commercial
customer-generator during that same period, the eligible residential
or small commercial customer-generator is a net electricity consumer
and the electric utility shall be owed compensation for the eligible
customer-generator's net kilowatthour consumption over that 12-month
period. The compensation owed for the eligible residential or small
commercial customer-generator's consumption shall be calculated as
follows:
(A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates,
any net monthly consumption of electricity shall be calculated
according to the terms of the contract or tariff to which the same
customer would be assigned to, or be eligible for, if the customer
was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electric utility would charge for the baseline
quantity of electricity during that billing period, and if the number
of kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
utility would charge for electricity over the baseline quantity
during that billing period.
(B) For all eligible customer-generators taking service under
contracts or tariffs employing time-of-use rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned, or be eligible for, if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric utility would charge for retail
kilowatthour sales during that same time-of-use period. If the
eligible customer-generator's time-of-use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (1)
of subdivision (c) shall apply.
(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electric utility for net consumption of
electricity or credits owed to the eligible customer-generator for
net generation of electricity shall be carried forward as a monetary
value until the end of each 12-month period. For all eligible
commercial, industrial, and agricultural customer-generators, the net
balance of moneys owed shall be paid in accordance with the electric
utility's normal billing cycle, except that if the eligible
commercial, industrial, or agricultural customer-generator is a net
electricity producer over a normal billing cycle, any excess
kilowatthours generated during the billing cycle shall be carried
over to the following billing period as a monetary value, calculated
according to the procedures set forth in this section, and appear as
a credit on the eligible commercial, industrial, or agricultural
customer-generator's account, until the end of the annual period when
paragraph (3) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric utility
during that same period, the eligible customer-generator is a net
surplus customer-generator and the electric utility shall, upon an
affirmative election by the eligible customer-generator, either (A)
provide net surplus electricity compensation for any net surplus
electricity generated during the prior 12-month period, or (B) allow
the eligible customer-generator to apply the net surplus electricity
as a credit for kilowatthours subsequently supplied by the electric
utility to the surplus customer-generator. For an eligible
customer-generator that does not affirmatively elect to receive
service pursuant to net surplus electricity compensation, the
electric utility shall retain any excess kilowatthours generated
during the prior 12-month period. The eligible customer-generator not
affirmatively electing to receive service pursuant to net surplus
electricity compensation shall not be owed any compensation for the
net surplus electricity unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatthours. Every electric utility shall, by January 31,
2010, provide notice to eligible customer-generators that they are
eligible to receive net surplus electricity compensation for net
surplus electricity, that they must elect to receive net surplus
electricity compensation, and that the 12-month period commences when
the electric utility receives the eligible customer-generator's
election. The commission may, for an electric utility that is an
electrical corporation or electrical cooperative, adopt requirements
for providing notice and the manner by which eligible
customer-generators may elect to receive net surplus electricity
compensation.
(4) (A) The ratemaking authority shall, by January 1, 2011,
establish a net surplus electricity compensation valuation to
compensate the net surplus customer-generator for the value of net
surplus electricity generated by the net surplus customer-generator.
The commission shall establish the valuation in a ratemaking
proceeding. The ratemaking authority for a local publicly owned
electric utility shall establish the valuation in a public
proceeding. The net surplus electricity compensation valuation shall
be established so as to provide the net surplus customer-generator
just and reasonable compensation for the value of net surplus
electricity, while leaving other ratepayers unaffected. The
ratemaking authority shall determine whether the compensation will
include, where appropriate justification exists, either or both of
the following components:
(i) The value of the electricity itself.
(ii) The value of the renewable attributes of the electricity.
(B) In establishing the rate pursuant to subparagraph (A), the
ratemaking authority shall ensure that the rate does not result in a
shifting of costs between solar customer-generators and other bundled
service customers.
(5) (A) Upon adoption of the net surplus electricity compensation
rate by the ratemaking authority, any renewable energy credit, as
defined in Section 399.12, for net surplus electricity purchased by
the electric utility shall belong to the electric utility. Any
renewable energy credit associated with electricity generated by the
eligible customer-generator that is utilized by the eligible
customer-generator shall remain the property of the eligible
customer-generator.
(B) Upon adoption of the net surplus electricity compensation rate
by the ratemaking authority, the net surplus electricity purchased
by the electric utility shall count toward the electric utility's
renewables portfolio standard annual procurement targets for the
purposes of paragraph (1) of subdivision (b) of Section 399.15, or
for a local publicly owned electric utility, the renewables portfolio
standard annual procurement targets established pursuant to Section
387.
(6) The electric utility shall provide every eligible residential
or small commercial customer-generator with net electricity
consumption and net surplus electricity generation information with
each regular bill. That information shall include the current
monetary balance owed the electric utility for net electricity
consumed, or the net surplus electricity generated, since the last
12-month period ended. Notwithstanding this subdivision, an electric
utility shall permit that customer to pay monthly for net energy
consumed.
(7) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric utility, the electric utility shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
(8) If an electric service provider or electric utility providing
net energy metering to a residential or small commercial
customer-generator ceases providing that electric service to that
customer during any 12-month period, and the customer-generator
enters into a new net energy metering contract or tariff with a new
electric service provider or electric utility, the 12-month period,
with respect to that new electric service provider or electric
utility, shall commence on the date on which the new electric service
provider or electric utility first supplies electric service to the
customer-generator.
(i) Notwithstanding any other provisions of this section, the
following provisions shall apply to an eligible customer-generator
with a capacity of more than 10 kilowatts, but not exceeding one
megawatt, that receives electric service from a local publicly owned
electric utility that has elected to utilize a co-energy metering
program unless the local publicly owned electric utility chooses to
provide service for eligible customer-generators with a capacity of
more than 10 kilowatts in accordance with subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
time-of-use measurements of electricity flow, and the customer shall
take service on a time-of-use rate schedule. If the existing meter of
the eligible customer-generator is not a time-of-use meter or is not
capable of measuring total flow of energy in both directions, the
eligible customer-generator shall be responsible for all expenses
involved in purchasing and installing a meter that is both
time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a government agency or an electric utility to reduce its
costs for purchasing and installing a time-of-use meter.
(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use an eligible solar or wind electrical generating
facility. The generation of electricity provided to the local
publicly owned electric utility shall result in a credit to the
eligible customer-generator and shall be priced in accordance with
the generation component, established under the applicable structure
to which the customer would be assigned if the customer did not use
an eligible solar or wind electrical generating facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a
kilowatthour credit consistent with the provisions of any applicable
contract or tariff, including any differences attributable to the
time of generation of the electricity. At the end of each 12-month
period, the local publicly owned electric utility may reduce any net
credit due to the eligible customer-generator to zero.
(j) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, including
Underwriters Laboratories and, where applicable, rules of the
commission regarding safety and reliability. A customer-generator
whose solar or wind turbine electrical generating system, or a hybrid
system of both, meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electric corporation, as defined in Section 218,
that may not be recovered from customer-generators acting pursuant to
this section, those obligations shall remain within the customer
class from which any shortfall occurred and may not be shifted to any
other customer class. Net energy metering and co-energy metering
customers shall not be exempt from the public goods charges imposed
pursuant to Article 7 (commencing with Section 381), Article 8
(commencing with Section 385), or Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1. In its report to the Legislature, the
commission shall examine different methods to ensure that the public
goods charges remain nonbypassable.
( l ) A net energy metering, co-energy
metering, or wind energy co-metering customer shall reimburse the
Department of Water Resources for all charges that would otherwise be
imposed on the customer by the commission to recover bond-related
costs pursuant to an agreement between the commission and the
Department of Water Resources pursuant to Section 80110 of the Water
Code, as well as the costs of the department equal to the share of
the department's estimated net unavoidable power purchase contract
costs attributable to the customer. The commission shall incorporate
the determination into an existing proceeding before the commission,
and shall ensure that the charges are nonbypassable. Until the
commission has made a determination regarding the nonbypassable
charges, net energy metering, co-energy metering, and wind energy
co-metering shall continue under the same rules, procedures, terms,
and conditions as were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (l),
an eligible customer-generator shall not be required to replace its
existing meter except as set forth in paragraph (1) of subdivision
(c), nor shall the electric utility require additional measurement of
usage beyond that which is necessary for customers in the same rate
class as the eligible customer-generator.
(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, including net surplus electricity
compensation, co-energy metering, and wind energy co-metering
projects undertaken pursuant to this section as sustainable building
methods or distributive energy technologies for purposes of
evaluating low-income housing projects.
SEC. 380. Section 2827 of the Public
Utilities Code , as amended by Chapter 6 of the Statutes
of 2010, is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering combined with net surplus compensation,
co-energy metering, and wind energy co-metering for eligible
customer-generators is one way to encourage substantial private
investment in renewable energy resources, stimulate in-state economic
growth, reduce demand for electricity during peak consumption
periods, help stabilize California's energy supply infrastructure,
enhance the continued diversification of California's energy resource
mix, reduce interconnection and administrative costs for electricity
suppliers, and encourage conservation and efficiency.
(b) As used in this section, the following terms have the
following meanings:
(1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
(2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
(3) "Electric utility" means an electrical corporation, a local
publicly owned electric utility, or an electrical cooperative, or any
other entity, except an electric service provider, that offers
electrical service. This section shall not apply to a local publicly
owned electric utility that serves more than 750,000 customers and
that also conveys water to its customers.
(4) "Eligible customer-generator" means a residential customer,
small commercial customer as defined in subdivision (h) of Section
331, or commercial, industrial, or agricultural customer of an
electric utility, who uses a solar or a wind turbine electrical
generating facility, or a hybrid system of both, with a capacity of
not more than one megawatt that is located on the customer's owned,
leased, or rented premises, and is interconnected and operates in
parallel with the electric grid, and is intended primarily to offset
part or all of the customer's own electrical requirements.
(5) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivisions (c) and (h).
(6) "Net surplus customer-generator" means an eligible
customer-generator that generates more electricity during a 12-month
period than is supplied by the electric utility to the eligible
customer-generator during the same 12-month period.
(7) "Net surplus electricity" means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed by
that eligible customer-generator.
(8) "Net surplus electricity compensation" means a per
kilowatthour rate offered by the electric utility to the net surplus
customer-generator for net surplus electricity that is set by the
ratemaking authority pursuant to subdivision (h).
(9) "Ratemaking authority" means, for an electrical corporation or
electrical cooperative, the commission, and for a local publicly
owned electric utility, the local elected body responsible for
setting the rates of the local publicly owned utility.
(10) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period is as described
in subdivision (h). Wind energy co-metering shall be accomplished
pursuant to Section 2827.8.
(c) (1) Every electric utility shall develop a standard contract
or tariff providing for net energy metering, and shall make this
standard contract or tariff available to eligible
customer-generators, upon request, on a first-come-first-served basis
until the time that the total rated generating capacity used by
eligible customer-generators exceeds 5 percent of the electric
utility's aggregate customer peak demand. Net energy metering shall
be accomplished using a single meter capable of registering the flow
of electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the eligible customer-generator, at the expense
of the electric utility, and the additional metering shall be used
only to provide the information necessary to accurately bill or
credit the eligible customer-generator pursuant to subdivision (h),
or to collect solar or wind electric generating system performance
information for research purposes. If the existing electrical meter
of an eligible customer-generator is not capable of measuring the
flow of electricity in two directions, the eligible
customer-generator shall be responsible for all expenses involved in
purchasing and installing a meter that is able to measure electricity
flow in two directions. If an additional meter or meters are
installed, the net energy metering calculation shall yield a result
identical to that of a single meter. An eligible customer-generator
that is receiving service other than through the standard contract or
tariff may elect to receive service through the standard contract or
tariff until the electric utility reaches the generation limit set
forth in this paragraph. Once the generation limit is reached, only
eligible customer-generators that had previously elected to receive
service pursuant to the standard contract or tariff have a right to
continue to receive service pursuant to the standard contract or
tariff. Eligibility for net energy metering does not limit an
eligible customer-generator's eligibility for any other rebate,
incentive, or credit provided by the electric utility, or pursuant to
any governmental program, including rebates and incentives provided
pursuant to the California Solar Initiative.
(2) An electrical corporation shall include a provision in the net
energy metering contract or tariff requiring that any customer with
an existing electrical generating facility and meter who enters into
a new net energy metering contract shall provide an inspection report
to the electrical corporation, unless the electrical generating
facility and meter have been installed or inspected within the
previous three years. The inspection report shall be prepared
by a California licensed
contractor who is not the owner or operator of the facility and
meter. A California licensed electrician shall perform the inspection
of the electrical portion of the facility and meter.
(3) (A) On an annual basis, beginning in 2003, every electric
utility shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area and the net surplus electricity purchased by
the electric utility pursuant to this section.
(B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electric corporation,
local publicly owned electric utility, or electrical cooperative, in
which the eligible customer-generator has net energy metering.
(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electric
utilities, and for using that information to determine when, pursuant
to paragraphs (1) and (4), an electric utility is not obligated to
provide net energy metering to additional eligible
customer-generators in its service area.
(4) An electric utility is not obligated to provide net energy
metering to additional eligible customer-generators in its service
area when the combined total peak demand of all electricity used by
eligible customer-generators served by all the electric utilities in
that service area furnishing net energy metering to eligible
customer-generators exceeds 5 percent of the aggregate customer peak
demand of those electric utilities.
(5) By January 1, 2010, the commission, in consultation with the
Energy Commission Department of Energy
, shall submit a report to the Governor and the Legislature on the
costs and benefits of net energy metering, wind energy co-metering,
and co-energy metering to participating customers and
nonparticipating customers and with options to replace the economic
costs and benefits of net energy metering, wind energy co-metering,
and co-energy metering with a mechanism that more equitably balances
the interests of participating and nonparticipating customers, and
that incorporates the findings of the report on economic and
environmental costs and benefits of net metering required by
subdivision (n).
(d) Every electric utility shall make all necessary forms and
contracts for net energy metering and net surplus electricity
compensation service available for download from the Internet.
(e) (1) Every electric utility shall ensure that requests for
establishment of net energy metering and net surplus electricity
compensation are processed in a time period not exceeding that for
similarly situated customers requesting new electric service, but not
to exceed 30 working days from the date it receives a completed
application form for net energy metering service or net surplus
electricity compensation, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction.
(2) Every electric utility shall ensure that requests for an
interconnection agreement from an eligible customer-generator are
processed in a time period not to exceed 30 working days from the
date it receives a completed application form from the eligible
customer-generator for an interconnection agreement.
(3) If an electric utility is unable to process a request within
the allowable timeframe pursuant to paragraph (1) or (2), it shall
notify the eligible customer-generator and the ratemaking authority
of the reason for its inability to process the request and the
expected completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365 with an electric
service provider that does not provide distribution service for the
direct transactions, the electric utility that provides distribution
service for the eligible customer-generator is not obligated to
provide net energy metering or net surplus electricity compensation
to the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
service provider, and the customer is an eligible customer-generator,
the electric utility that provides distribution service for the
direct transactions may recover from the customer's electric service
provider the incremental costs of metering and billing service
related to net energy metering and net surplus electricity
compensation in an amount set by the ratemaking authority.
(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract or
tariff shall be identical, with respect to rate structure, all
retail rate components, and any monthly charges, to the contract or
tariff to which the same customer would be assigned if the customer
did not use an eligible solar or wind electrical generating facility,
except that eligible customer-generators shall not be assessed
standby charges on the electrical generating capacity or the
kilowatthour production of an eligible solar or wind electrical
generating facility. The charges for all retail rate components for
eligible customer-generators shall be based exclusively on the
customer-generator's net kilowatthour consumption over a 12-month
period, without regard to the eligible customer-generator's choice as
to from whom it purchases electricity that is not self-generated.
Any new or additional demand charge, standby charge, customer charge,
minimum monthly charge, interconnection charge, or any other charge
that would increase an eligible customer-generator's costs beyond
those of other customers who are not eligible customer-generators in
the rate class to which the eligible customer-generator would
otherwise be assigned if the customer did not own, lease, rent, or
otherwise operate an eligible solar or wind electrical generating
facility is contrary to the intent of this section, and shall not
form a part of net energy metering contracts or tariffs.
(h) For eligible customer-generators, the net energy metering
calculation shall be made by measuring the difference between the
electricity supplied to the eligible customer-generator and the
electricity generated by the eligible customer-generator and fed back
to the electric grid over a 12-month period. The following rules
shall apply to the annualized net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electric utility, and at each
anniversary date thereafter, be billed for electricity used during
that 12-month period. The electric utility shall determine if the
eligible residential or small commercial customer-generator was a net
consumer or a net surplus customer-generator during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric utility exceeds the
electricity generated by the eligible residential or small commercial
customer-generator during that same period, the eligible residential
or small commercial customer-generator is a net electricity consumer
and the electric utility shall be owed compensation for the eligible
customer-generator's net kilowatthour consumption over that 12-month
period. The compensation owed for the eligible residential or small
commercial customer-generator's consumption shall be calculated as
follows:
(A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates,
any net monthly consumption of electricity shall be calculated
according to the terms of the contract or tariff to which the same
customer would be assigned to, or be eligible for, if the customer
was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electric utility would charge for the baseline
quantity of electricity during that billing period, and if the number
of kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
utility would charge for electricity over the baseline quantity
during that billing period.
(B) For all eligible customer-generators taking service under
contracts or tariffs employing time-of-use rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned, or be eligible for, if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric utility would charge for retail
kilowatthour sales during that same time-of-use period. If the
eligible customer-generator's time-of-use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (1)
of subdivision (c) shall apply.
(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electric utility for net consumption of
electricity or credits owed to the eligible customer-generator for
net generation of electricity shall be carried forward as a monetary
value until the end of each 12-month period. For all eligible
commercial, industrial, and agricultural customer-generators, the net
balance of moneys owed shall be paid in accordance with the electric
utility's normal billing cycle, except that if the eligible
commercial, industrial, or agricultural customer-generator is a net
electricity producer over a normal billing cycle, any excess
kilowatthours generated during the billing cycle shall be carried
over to the following billing period as a monetary value, calculated
according to the procedures set forth in this section, and appear as
a credit on the eligible commercial, industrial, or agricultural
customer-generator's account, until the end of the annual period when
paragraph (3) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric utility
during that same period, the eligible customer-generator is a net
surplus customer-generator and the electric utility shall, upon an
affirmative election by the eligible customer-generator, either (A)
provide net surplus electricity compensation for any net surplus
electricity generated during the prior 12-month period, or (B) allow
the eligible customer-generator to apply the net surplus electricity
as a credit for kilowatthours subsequently supplied by the electric
utility to the surplus customer-generator. For an eligible
customer-generator that does not affirmatively elect to receive
service pursuant to net surplus electricity compensation, the
electric utility shall retain any excess kilowatthours generated
during the prior 12-month period. The eligible customer-generator not
affirmatively electing to receive service pursuant to net surplus
electricity compensation shall not be owed any compensation for the
net surplus electricity unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatthours. Every electric utility shall, by January 31,
2010, provide notice to eligible customer-generators that they are
eligible to receive net surplus electricity compensation for net
surplus electricity, that they must elect to receive net surplus
electricity compensation, and that the 12-month period commences when
the electric utility receives the eligible customer-generator's
election. The commission may, for an electric utility that is an
electrical corporation or electrical cooperative, adopt requirements
for providing notice and the manner by which eligible
customer-generators may elect to receive net surplus electricity
compensation.
(4) (A) The ratemaking authority shall, by January 1, 2011,
establish a net surplus electricity compensation valuation to
compensate the net surplus customer-generator for the value of net
surplus electricity generated by the net surplus customer-generator.
The commission shall establish the valuation in a ratemaking
proceeding. The ratemaking authority for a local publicly owned
electric utility shall establish the valuation in a public
proceeding. The net surplus electricity compensation valuation shall
be established so as to provide the net surplus customer-generator
just and reasonable compensation for the value of net surplus
electricity, while leaving other ratepayers unaffected. The
ratemaking authority shall determine whether the compensation will
include, where appropriate justification exists, either or both of
the following components:
(i) The value of the electricity itself.
(ii) The value of the renewable attributes of the electricity.
(B) In establishing the rate pursuant to subparagraph (A), the
ratemaking authority shall ensure that the rate does not result in a
shifting of costs between solar customer-generators and other bundled
service customers.
(5) (A) Upon adoption of the net surplus electricity compensation
rate by the ratemaking authority, any renewable energy credit, as
defined in Section 399.12, for net surplus electricity purchased by
the electric utility shall belong to the electric utility. Any
renewable energy credit associated with electricity generated by the
eligible customer-generator that is utilized by the eligible
customer-generator shall remain the property of the eligible
customer-generator.
(B) Upon adoption of the net surplus electricity compensation rate
by the ratemaking authority, the net surplus electricity purchased
by the electric utility shall count toward the electric utility's
renewables portfolio standard annual procurement targets for the
purposes of paragraph (1) of subdivision (b) of Section 399.15, or
for a local publicly owned electric utility, the renewables portfolio
standard annual procurement targets established pursuant to Section
387.
(6) The electric utility shall provide every eligible residential
or small commercial customer-generator with net electricity
consumption and net surplus electricity generation information with
each regular bill. That information shall include the current
monetary balance owed the electric utility for net electricity
consumed, or the net surplus electricity generated, since the last
12-month period ended. Notwithstanding this subdivision, an electric
utility shall permit that customer to pay monthly for net energy
consumed.
(7) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric utility, the electric utility shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
(8) If an electric service provider or electric utility providing
net energy metering to a residential or small commercial
customer-generator ceases providing that electric service to that
customer during any 12-month period, and the customer-generator
enters into a new net energy metering contract or tariff with a new
electric service provider or electric utility, the 12-month period,
with respect to that new electric service provider or electric
utility, shall commence on the date on which the new electric service
provider or electric utility first supplies electric service to the
customer-generator.
(i) Notwithstanding any other provisions of this section, the
following provisions shall apply to an eligible customer-generator
with a capacity of more than 10 kilowatts, but not exceeding one
megawatt, that receives electric service from a local publicly owned
electric utility that has elected to utilize a co-energy metering
program unless the local publicly owned electric utility chooses to
provide service for eligible customer-generators with a capacity of
more than 10 kilowatts in accordance with subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
time-of-use measurements of electricity flow, and the customer shall
take service on a time-of-use rate schedule. If the existing meter of
the eligible customer-generator is not a time-of-use meter or is not
capable of measuring total flow of energy in both directions, the
eligible customer-generator shall be responsible for all expenses
involved in purchasing and installing a meter that is both
time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a governmental agency or an electric utility to reduce
its costs for purchasing and installing a time-of-use meter.
(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use an eligible solar or wind electrical generating
facility. The generation of electricity provided to the local
publicly owned electric utility shall result in a credit to the
eligible customer-generator and shall be priced in accordance with
the generation component, established under the applicable structure
to which the customer would be assigned if the customer did not use
an eligible solar or wind electrical generating facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a
kilowatthour credit consistent with the provisions of any applicable
contract or tariff, including any differences attributable to the
time of generation of the electricity. At the end of each 12-month
period, the local publicly owned electric utility may reduce any net
credit due to the eligible customer-generator to zero.
(j) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, including
Underwriters Laboratories and, where applicable, rules of the
commission regarding safety and reliability. A customer-generator
whose solar or wind turbine electrical generating system, or a hybrid
system of both, meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electrical corporation, as defined in Section 218,
that may not be recovered from customer-generators acting pursuant
to this section, those obligations shall remain within the customer
class from which any shortfall occurred and may not be shifted to any
other customer class. Net energy metering and co-energy metering
customers shall not be exempt from the public goods charges imposed
pursuant to Article 7 (commencing with Section 381), Article 8
(commencing with Section 385), or Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1. In its report to the Legislature, the
commission shall examine different methods to ensure that the public
goods charges remain nonbypassable.
(l) A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources for all charges that would otherwise be imposed on the
customer by the commission to recover bond-related costs pursuant to
an agreement between the commission and the Department of Water
Resources pursuant to Section 80110 of the Water Code, as well as the
costs of the department equal to the share of the department's
estimated net unavoidable power purchase contract costs attributable
to the customer. The commission shall incorporate the determination
into an existing proceeding before the commission, and shall ensure
that the charges are nonbypassable. Until the commission has made a
determination regarding the nonbypassable charges, net energy
metering, co-energy metering, and wind energy co-metering shall
continue under the same rules, procedures, terms, and conditions as
were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (
l ), an eligible customer-generator shall not be required
to replace its existing meter except as set forth in paragraph (1) of
subdivision (c), nor shall the electric utility require additional
measurement of usage beyond that which is necessary for customers in
the same rate class as the eligible customer-generator.
(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, including net surplus electricity
compensation, co-energy metering, and wind energy co-metering
projects undertaken pursuant to this section as sustainable building
methods or distributive energy technologies for purposes of
evaluating low-income housing projects.
SEC. 381. Division 1.5 (commencing with Section 3300) of the
Public Utilities Code is repealed.
SEC. 382. Section 9502 of the Public Utilities Code is amended to
read:
9502. On or before December 1, 1994, and on a biennial basis
thereafter, each publicly owned electric and gas utility shall submit
a report to the Department of Energy describing the status of their
low-income weatherization programs required by Sections 9500 and
9501. Thereafter, as part of the biennial conservation report
prepared pursuant to Section 25401.1 of the Public Resources Code,
the commission shall report to the Legislature summarizing publicly
owned utility efforts to comply with Sections 9500 and 9501.
SEC. 383. The provisions of this act are severable. If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.