BILL NUMBER: AB 723 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 8, 2012
AMENDED IN SENATE JUNE 27, 2012
AMENDED IN SENATE JUNE 29, 2011
AMENDED IN SENATE JUNE 20, 2011
INTRODUCED BY Assembly Member Bradford
FEBRUARY 17, 2011
An act to amend Sections 25740.5 and 25751 of, to repeal
Chapter 8.1 (commencing with Section 25710) of Division 15 of, and to
add Sections 25744.6 and 25744.7 to, the Public Resources Code, and
to amend Section 399.8 of the Public Utilities Code, relating
to energy, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 723, as amended, Bradford. Energy: public goods charge.
(1) Under the Public Utilities Act (the act), the Public Utilities
Commission (PUC) has regulatory authority over public utilities,
including electrical corporations. The Reliable Electric Service
Investments Act within the act requires the PUC to require an
electrical corporation, until January 1, 2012, to identify a separate
electrical rate component, commonly referred to as the "public goods
charge," to fund energy efficiency, renewable energy, and research,
development, and demonstration programs that enhance system
reliability and provide in-state benefits. A violation of the act is
a crime.
This bill would extend this requirement to January 1, 2020, and
would make other technical and conforming changes. Because a
violation of the act is a crime, this bill would impose a
state-mandated local program by extending the application of a crime.
(2) An existing decision of the PUC institutes an Electric Program
Investment Charge (EPIC), subject to refund, to fund renewable
energy and research, development, and demonstration programs.
Existing law requires moneys received by the PUC for those EPIC
programs that the PUC has determined should be administered by the
Energy Commission to be forwarded by the PUC to the Energy Commission
at least quarterly for deposit in the Electric Program Investment
Charge Fund.
This bill would repeal the fund and would, instead, require EPIC
collected for renewable energy to be transmitted to the State Energy
Resources Conservation and Development Commission (Energy Commission)
for deposit in the Renewable Resources Trust Fund. The bill would
provide that the collection of the public goods charge supersedes the
imposition of EPIC by the PUC.
(3) Existing law establishes the renewable energy resources
program to increase the amount of electricity generated from eligible
renewable energy resources per year so that it equals at least 33%
of total retail sales of electricity in California by December 31,
2020.
This bill would require the Energy Commission to implement a Clean
Energy Investment Program to support the achievement of the state's
renewable energy goals. The bill would require the Energy Commission
to develop and adopt an annual investment plan to establish priority
activities for the program and describe how funding will complement,
but not duplicate, existing public and private investments. This
would require the Energy Commission to establish an advisory body to
assist the Energy Commission in developing the investment plan. The
bill would require the Energy Commission to submit to the relevant
committees of the Legislature draft of a multiyear investment plan
and to submit to the Legislature an annual report highlighting and
explaining the rationale for any year-to-year changes to the Energy
Commission's activity strategy and priorities. The bill would require
the Energy Commission to report annually to the Legislature
regarding the results of the mechanisms funded. The bill would
require that the portion of the public goods charge collected for
renewable energy be transmitted to the Energy Commission for deposit
in the Renewable Resources Trust Fund. The bill would require the
money in the fund, upon appropriation by the Legislature, be expended
to implement the Clean Energy Investment Program and the New Solar
Homes Partnership, to provide grants to eligible counties to
facilitate the development of eligible renewable energy resources,
and to provide funding to the Superintendent of Public Instruction
for grants to school districts to implement the Clean Technology and
Renewable Energy Job Training, Career Technical Education, and
Dropout Prevention Program.
(4) This bill would not become operative unless SB 870 of the
2011-12 Regular Session of the Legislature is enacted on or before
January 1, 2013.
(2)
(5) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(3)
(6) This bill would declare that it is to take effect
immediately as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 8.1 (commencing with Section
25710) of Division 15 of the Public Resources Code
is repealed.
SEC. 2. Section 25740.5 of the Public
Resources Code is amended to read:
25740.5. Notwithstanding any other 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
2020 , shall be used for the purposes specified
in this chapter.
SEC. 3. Section 25744.6 is added to the
Public Resources Code , to read:
25744.6. (a) The commission shall implement the Clean Energy
Investment Program to support the achievement of the state's
renewable energy goals, including the growth of distributed
generation, and seek creative solutions to barriers to development
and deployment of technologies to achieve those goals. The program
shall provide technical assistance, tools, and resources to support
industry, local government, economic, and workforce development
leaders in efforts to overcome these barriers.
(b) Activities eligible for investment pursuant to this section
include, but are not limited to, technology demonstration and
deployment and market facilitation for clean energy technologies,
which will maximize job creation and economic growth through the
deployment and commercialization of renewable energy, grid
integration, and energy storage technologies.
(c) (1) The commission shall, in consultation with the advisory
body established pursuant to subdivision (d), develop and adopt an
annual investment plan to establish priority activities for the
program to achieve the goals of this section and describe how funding
will complement but not duplicate existing public and private
investments, including existing state programs that further the goals
of this section.
(2) On or before March 15, 2013, and annually thereafter, the
commission shall submit a draft of a multiyear investment plan, in
accordance with paragraph (1) and including the upcoming fiscal year
to all relevant policy and fiscal committees of the Legislature. In
enacting this paragraph, it is the intent of the Legislature to
ensure legislative oversight of the program and provide to the
Legislature all of the information necessary to fully understand the
manner in which funds are to be allocated and prioritized within the
program.
(3) The commission shall, at a minimum, hold at least two annual
public hearings on the advisory body's recommendations on the
commission's proposed investment plan prior to the commission's
consideration and approval of the investment plan.
(d) (1) The commission shall establish an advisory body with
membership that includes, but is not limited to, representatives of
investor-owned utilities, the Public Utilities Commission and the
Independent System Operator, clean energy businesses and investors,
local governments, building industries, labor organizations,
environmental groups, environmental justice groups, ratepayer groups,
business associations, and research and technical experts.
(2) The advisory body shall work with the commission in developing
the investment plan pursuant to subdivision (c).
(3) The advisory body shall meet at least twice annually to
provide strategic and technical guidance.
(4) The advisory body shall be 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).
(f) The commission shall submit an annual report to the
Legislature that highlights and explains the rationale for any
year-to-year changes to the commission's activity strategy and
priorities, particularly with respect to specific demonstration
programs or policy initiatives.
(g) It is the intent of the Legislature that submission of the
draft investment plan, along with timely notification of
modifications to the investment plan thereafter, as reported in the
commission's annual reports to the Legislature, will ensure
legislative oversight of the program and provide the Legislature with
all of the necessary information to fully understand how and why
funds are to be allocated and prioritized within the program.
(h) The commission may make a single source or sole source award
pursuant to this section. The same requirements of subdivision (f) of
Section 25620.5 shall apply to awards made on a single source basis
or a sole source basis pursuant to this subdivision.
(i) Reports required pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code.
(j) (1) 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.
(2) Moneys collected on and after January 1, 2012, and before
January 1, 2020, shall be used for the purposes specified in this
chapter.
SEC. 4. Section 25744.7 is added to the
Public Resources Code , to read:
25744.7. (a) The commission shall adopt guidelines governing the
funding of the Clean Energy Investment Program established pursuant
to Section 25744.6.
(b) Funds to further the purposes of this section and Section
25744.6 may be committed for multiple years.
(c) The commission may award funding under this section and
Section 25744.6 in the form of contracts, grants and loans, and other
funding or financing mechanisms identified by the commission. Any
actions taken by an applicant to apply for, or to become or remain
eligible to receive, grant or loan payments or awards shall not
constitute the rendering of goods, services, or a direct benefit to
the commission.
(d) An award made pursuant to this section and Section 25744.6,
the amount of the award, and the terms and conditions of the award
are public information.
(e) The commission shall, pursuant to Section 9795 of the
Government Code, report to the Legislature on or before July 31,
2013, and annually thereafter, regarding the results of the
mechanisms funded pursuant to this section and Section 25744.6. The
report shall contain all of the following:
(1) A description of the allocation of funds.
(2) The status of any repayments.
(3) A description of the cumulative commitment of awards, the
relative demand for funds, and a forecast of future awards.
(4) A discussion of the progress being made toward achieving the
targets established under Section 25740 through funding provided
pursuant to this section and Section 25744.6.
(5) A description of the allocation of funds from interest
earnings.
(6) An itemized list, including project descriptions, award
amounts, and outcomes for projects awarded funding in the prior year.
(f) That portion of revenues collected by electrical corporations
for the benefit of renewable energy, pursuant to Section 399.8 of the
Public Utilities Code, shall be transmitted to the commission at
least quarterly for deposit in the Renewable Resource Trust Fund
established pursuant to subdivision (a) of Section 25751 for the
purposes specified in Section 25744.6. After setting aside in the
fund money that may be needed for expenditures authorized by the
annual Budget Act pursuant to this section, the Treasurer shall
immediately deposit money received pursuant to this section into the
Renewable Resource Trust Fund.
(g) The money in the Renewable Resource Trust Fund may be
expended, only upon appropriation by the Legislature in the annual
Budget Act, for the purposes of this section.
SEC. 5. Section 25751 of the Public
Resources Code is amended to read:
25751. (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
(b) The Emerging Renewable Resources Account is hereby established
within the Renewable Resources Trust Fund. Notwithstanding Section
13340 of the Government Code, the moneys in the account are hereby
continuously appropriated to the commission without regard to fiscal
years for the following purposes:
(1) To close out the award of incentives for emerging technologies
in accordance with former Section 25744, as this law existed prior
to the enactment of the Budget Act of 2012, for which applications
had been approved before the enactment of the Budget Act of 2012.
(2) To close out consumer education activities in accordance with
former Section 25746, as this law existed prior to the enactment of
the Budget Act of 2012.
(c) The Controller shall provide to the commission funds pursuant
to the continuous appropriation in, and for purposes specified in,
subdivision (b).
(d) The Controller shall provide to the commission moneys from the
fund sufficient to satisfy all contract and grant awards that were
made by the commission pursuant to former Sections 25744 and 25746,
and Chapter 8.8 (commencing with Section 25780), as these laws
existed prior to the enactment of the Budget Act of 2012.
(e) Moneys in the fund shall, upon appropriation by the
Legislature, be expended by the commission for all of the following:
(1) The New Solar Homes Partnership administered by the
commission.
(2) The allocation of grants by the commission to qualified
counties pursuant to Section 25619.
(3) The allocation of funds to the Superintendent of Public
Instruction for grants to school districts pursuant to Section 54699
of the Education Code.
(4) The implementation of the Clean Energy Investment Program
established pursuant to Section 25744.6.
SECTION 1. SEC. 6. 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, 2020. The rate component shall
be a nonbypassable element of the local distribution service and
collected on the basis of usage.
(2) This rate component shall 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
shall 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.
(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 Energy Commission 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)
(e) The commission and the Energy Commission shall
retain and continue their oversight responsibilities as set forth in
Sections 381 and 384, 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)
(f) 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. 7. (a) The funds collected pursuant to the
surcharge instituted by the Public Utilities Commission pursuant to
Decision 11-12-035 for renewable energy programs shall be transferred
to the State Energy Resources Conservation and Development
Commission for deposit in the Renewable Resources Trust Fund
established pursuant to Section 25751 of the Public Resources Code.
Any money deposited into the former Electric Program Investment
Charge Fund established pursuant to former Section 25711 of the
Public Resources Code shall be transferred to the Renewable Resources
Trust Fund.
(b) On and after the effective date of this act, the surcharge
imposed by the Public Utilities Commission pursuant to Decision
11-12-035 shall be superseded by the collection of the nonbypassable
rate component pursuant to subdivision (c) of Section 399.8 of the
Public Utilities Code.
SEC. 8. This act shall not become operative unless
Senate Bill 870 of the 2011-2012 Regular Session of the Legislature
is enacted on or before January 1, 2013.
SEC. 2. SEC. 9. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
SEC. 3. SEC. 10. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to prevent interruption of the funding and administration
of programs funded through the public goods charge and to reform
administration of those programs to better serve the needs of
ratepayers and the persons participating in those programs, it is
necessary for this act to take effect immediately.