BILL NUMBER: SB 23	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 26, 2011

INTRODUCED BY    Senators   Simitian,
    Kehoe,  
  and Steinberg   Senator  
Simitian 

                        DECEMBER 6, 2010

    An act to add Section 705 to the Fish and Game Code, to
amend Sections 25740, 25740.5, 25741, 25742, 25746, 25747, and 25751
of, to add Section 25519.5 to, and to add and repeal Section 25741.5
of, the Public Resources Code, and to amend Sections 399.11, 399.12,
399.20, and 454.5 of, to amend, renumber, and add Sections 399.13 and
399.16 of, to add Sections 399.18, 399.19, 399.26, 399.30, 399.31,
and 1005.1 to, to add Article 11 (commencing with Section 910) to
Chapter 4 of Part 1 of Division 1 of, to repeal Section 387 of, and
to repeal and add Sections 399.14, 399.15, and 399.17 of, the Public
Utilities Code, relating to energy, and making an appropriation
therefor.   An act to amend Section 25741.5 of the
Public Resources Code, and   to amend Sections 399.26 and
399.30   of the Public Utilities Code, relating to energy.




	LEGISLATIVE COUNSEL'S DIGEST


   SB 23, as amended, Simitian. Energy: renewable energy resources.

   Existing law creates the California renewables portfolio standard
program (RPS program) and the Renewable Energy Resources Program to
increase the amount of electricity generated per year from eligible
renewable energy resources, as defined.  
   Existing law, effective on ____, requires the State Energy
Resources Conservation and Development Commission (Energy
Commission), by June 30, 2011, to study and provide a report to the
Legislature that analyzes run-of-river hydroelectric generating
facilities, as defined, in British Columbia, including whether these
facilities are, or should be, included as renewable electrical
generation facilities for purposes of the Renewable Energy Resources
Program administered by the Energy Commission or eligible renewable
energy resources for purposes of the RPS program.  
   Existing law, effective on ____, requires the Energy Commission,
among other things, to adopt regulations specifying procedures for
enforcement of the RPS requirements by July 1, 2011.  
   Existing law, effective on ____, requires the Public Utilities
Commission, by July 1, 2011, to determine the effective load carrying
capacity of wind and solar energy resources on the electrical grid.
 
   This bill would extend the compliance date for these requirements
by one year.  
   (1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the PUC to require
the state's 3 largest electrical corporations, Pacific Gas and
Electric Company, San Diego Gas and Electric, and Southern California
Edison, to identify a separate electrical rate component to fund
programs that enhance system reliability and provide in-state
benefits. This rate component is a nonbypassable element of local
distribution and collected on the basis of usage. Existing PUC
resolutions refer to the nonbypassable rate component as a "public
goods charge." The public goods charge moneys are collected to
support cost-effective energy efficiency and conservation activities,
public interest research and development not adequately provided by
competitive and regulated markets, and renewable energy resources.
 
   The existing Warren-Alquist State Energy Resources Conservation
and Development Act establishes the State Energy Resources
Conservation and Development Commission (Energy Commission). The act
requires the commission to certify sufficient sites and related
facilities that are required to provide a supply of electric power
sufficient to accommodate projected demand for power statewide. The
act requires the commission to transmit a copy of an application for
certification of a site and related facility to, among other
entities, 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.  
   This bill would require an applicant to inform the United States
Department of Defense of a proposed project and that an application
will be filed with the commission if the site and related facility
specified in the application are proposed to be located within 1,000
feet of a military installation, or lie within special use airspace
or beneath a low-level flight path, as defined.  
   Existing law establishes the Renewable Resource Trust Fund as a
fund that is continuously appropriated, with certain exceptions for
administrative expenses, in the State Treasury, and requires that
certain moneys collected to support renewable energy resources
through the public goods charge are deposited into the fund and
authorizes the Energy Commission to expend the moneys pursuant to the
Renewable Energy Resources Program. The program states the intent of
the Legislature to increase the amount of electricity generated from
eligible renewable energy resources per year so that amount equals
at least 20% of total retail sales of electricity in California per
year by December 31, 2010.  
   This bill would revise the Renewable Energy Resources Program to
state the intent of the Legislature to increase the amount of
electricity generated from eligible renewable energy resources per
year, so that amount equals at least 33% of total retail sales of
electricity in California per year by December 31, 2020. The bill
would revise certain terms used in the program, and revise certain
eligibility criteria for a renewable electrical generation facility,
as defined, pursuant to the program.  
   (2) Existing law expresses the intent of the Legislature, in
establishing the California Renewables Portfolio Standard Program
(RPS program), to increase the amount of electricity generated per
year from eligible renewable energy resources, as defined, to an
amount that equals at least 20% of the total electricity sold to
retail customers in California per year by December 31, 2010. The RPS
program requires that a retail seller of electricity, including
electrical corporations, community choice aggregators, and electric
service providers, purchase a specified minimum percentage of
electricity generated by eligible renewable energy resources, as
defined, in any given year as a specified percentage of total
kilowatthours sold to retail end-use customers each calendar year.
The RPS program requires the PUC to implement annual procurement
targets for each retail seller to increase its total procurement of
electricity generated by eligible renewable energy resources by at
least an additional 1% of retail sales per year so that 20% of its
retail sales of electricity are procured from eligible renewable
energy resources no later than December 31, 2010. Existing law
requires the PUC to make a determination of the existing market cost
for electricity, which PUC decisions call the market price referent,
and to limit an electrical corporation's obligation to procure
electricity from eligible renewable energy resources, that exceeds
the market price referent, by a specified amount.  
   This bill would express the intent that the amount of electricity
generated per year from eligible renewable energy resources be
increased to an amount that equals at least 20% of the total
electricity sold to retail customers in California per year by
December 31, 2013, and 33% by December 31, 2020. The bill would
require the PUC, by January 1, 2012, to establish the quantity of
electricity products from eligible renewable energy resources to be
procured by each retail seller for specified compliance periods,
sufficient to ensure that the procurement of electricity products
from eligible renewable energy resources achieves 25% of retail sales
by December 31, 2016, and 33% of retail sales by December 31, 2020,
and that retail sellers procure not less than 33% of retail sales in
all subsequent years. The bill, consistent with the goals of
procuring the least-cost and best-fit eligible renewable energy
resources that meet project viability principles, would require that
all retail sellers procure a balanced portfolio of electricity
products from eligible renewable energy resources, as specified. The
bill would require the PUC to waive enforcement of the renewables
portfolio standard procurement requirement if the PUC finds that the
retail seller has demonstrated certain conditions exist that are
beyond the control of the retail seller and will prevent compliance,
and has taken all reasonable actions under its control to achieve
compliance. The bill would require the PUC to direct each electrical
corporation to annually prepare a renewable energy procurement plan
containing specified matters and require, to the extent feasible,
that the plan be proposed, reviewed, and adopted by the PUC as part
of, and pursuant to, a general procurement plan process. The bill
would require the PUC to direct all retail sellers to prepare and
submit an annual compliance report. The bill would delete the
existing market price referent provisions, and instead require the
PUC to establish a limitation for each electrical corporation on the
procurement expenditures for all eligible renewable energy resources
used to comply with the renewables portfolio standard. The bill would
require that by January 1, 2016, the PUC report to the Legislature
assessing whether each electrical corporation can achieve a 33%
renewables portfolio standard by December 31, 2020, and maintain that
level thereafter, within the cost limitations. The bill would
provide that, if the cost limitation for an electrical corporation is
insufficient to support the projected costs of meeting the
renewables portfolio standard procurement requirements, the
electrical corporation is authorized to refrain from entering into
new contracts or constructing facilities beyond the quantity that can
be procured within the limitation, unless eligible renewable energy
resources can be procured without exceeding a de minimis increase in
rates, consistent with the electrical corporation's general
procurement plan. The bill would delete an existing requirement that
the PUC adopt flexible rules for compliance for retail sellers. The
bill would revise the definitions of certain terms for purposes of
the RPS program, would recast certain provisions applicable only to
an electrical corporation with 60,000 or fewer customer accounts in
California that serves retail end-use customers outside of
California, and would add provisions applicable to certain smaller
electrical corporations. The bill would authorize an electrical
corporation to apply to the PUC for approval to construct, own, and
operate an eligible renewable energy resource, and would require the
PUC to approve the application if certain conditions are met, until
electrical corporation owned and operated resources provide 8.25% of
the corporation's anticipated retail sales.  
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the PUC
is a crime.  
   Because the provisions of this bill are within the act and require
action by the PUC to implement its requirements, a violation of
these provisions would impose a state-mandated local program by
expanding the definition of a crime.  
   (3) Under existing law, the governing board of a local publicly
owned electric utility is responsible for implementing and enforcing
a renewables portfolio standard for the utility that recognizes the
intent of the Legislature to encourage renewable resources, while
taking into consideration the effect of the standard on rates,
reliability, and financial resources and the goal of environmental
improvement.  
   This bill would repeal this provision, and instead generally make
the requirements of the RPS program applicable to local publicly
owned electric utilities, except that the utility's governing board
would be responsible for implementation of those requirements,
instead of the PUC, and certain enforcement authority with respect to
local publicly owned electric utilities would be given to the Energy
Commission and State Air Resources Board, instead of the PUC. By
placing additional requirements upon local publicly owned electric
utilities, the bill would impose a state-mandated local program.
 
   (4) Existing law requires the Energy Commission to certify
eligible renewable energy resources, to design and implement an
accounting system to verify compliance with the RPS requirements by
retail sellers, and to develop tracking, accounting, verification,
and enforcement mechanisms for renewable energy credits, as defined.
 
   This bill would require the Energy Commission to design and
implement an accounting system to verify compliance with the RPS
requirements by retail sellers and local publicly owned electric
utilities. The bill would require the Energy Commission, among other
things, to adopt regulations specifying procedures for enforcement of
the RPS requirements that include a public process under which the
Energy Commission is authorized to issue a notice of violation and
correction with respect to a local publicly owned electric utility
and for referral to the State Air Resources Board for penalties
imposed pursuant to the California Global Warming Solutions Act of
2006 or other laws if that act is suspended or repealed. This bill
would revise the definition of renewable energy credit. The bill
would require the Energy Commission, by June 30, 2011, to study and
provide a report to the Legislature that analyzes run-of-river
hydroelectric generating facilities, as defined, in British Columbia,
including whether these facilities are, or should be, included as
renewable electrical generation facilities for purposes of the
Renewable Energy Resources Program administered by the Energy
Commission or eligible renewable energy resources for purposes of the
RPS program.  
   (5) Existing law requires the PUC, by February 1 of each year, to
prepare and submit to the Governor and the Legislature a written
report on the costs of programs and activities conducted by an
electrical corporation or gas corporation that have more than a
specified number of customers in California.  
   This bill would require the PUC, by February 1 of each year, to
prepare and submit to the policy and fiscal committees of the
Legislature a report on (A) all electrical corporation revenue
requirement increases associated with meeting the renewables
portfolio standard, (B) all cost savings experienced, or costs
avoided, by electrical corporations as a result of meeting the
renewables portfolio standard, (C) all costs incurred by electrical
corporations for incentives for distributed and renewable generation,
(D) all cost savings experienced, or costs avoided, by electrical
corporations as a result of incentives for distributed generation and
renewable generation, (E) specified costs for which an electrical
corporation is seeking recovery in rates that are pending
determination or approval by the PUC, (F) the decision number of each
PUC decision in the prior year authorizing an electrical corporation
to recover costs incurred in rates, (G) any changes in the prior
year in load serviced by an electrical corporation, and (H) the
efforts each electrical corporation is taking to recruit and train
employees to ensure an adequately trained and available workforce.
 
   (6) The bill would require the PUC, by July 1, 2011, to determine
the effective load carrying capacity of wind and solar energy
resources on the electrical grid. The bill would require the PUC to
use those values in establishing the contribution of those resources
toward meeting specified resource adequacy requirements. 

   (7) The Public Utilities Act prohibits any electrical corporation
from beginning the construction of, among other things, a line,
plant, or system, or of any extension thereof, without having first
obtained from the PUC a certificate that the present or future public
convenience and necessity require or will require that construction,
termed a certificate of public convenience and necessity. 

   This bill would require the PUC to issue a decision on an
application for a certificate of public convenience and necessity
within 18 months of the filing of a completed application under
specified circumstances.  
   (8) Existing law establishes the Department of Fish and Game in
the Natural Resources Agency, and generally charges the department
with the administration and enforcement of the Fish and Game Code.
 
   This bill would require the department to establish an internal
division with the primary purpose of performing comprehensive
planning and environmental compliance services with priority given to
projects involving the building of eligible renewable energy
resources.  
   (9) The existing restructuring of the electrical industry within
the Public Utilities Act provides for the establishment of an
Independent System Operator (ISO). Existing law requires the ISO to
ensure efficient use and reliable operation of the transmission grid
consistent with achieving planning and operating reserve criteria no
less stringent than those established by the Western Electricity
Coordinating Council and the American Electric Reliability Council.
Pursuant to existing law, the ISO's tariffs are required to be
approved by the FERC.  
   This bill would require the ISO and other California balancing
authorities to work cooperatively to integrate and interconnect
eligible renewable energy resources to the transmission grid by the
most efficient means possible with the goal of minimizing the impact
and cost of new transmission facilities needed to meet both
reliability needs and the renewables portfolio standard procurement
requirements, and to accomplish this in a manner that respects the
ownership, business, and dispatch models for transmission facilities
owned by electrical corporations, local publicly owned electric
utilities, joint power agencies, and independent transmission
companies.  
   (10) This bill would appropriate $322,000 from the Public
Utilities Commission Utilities Reimbursement Account to the PUC for
additional staffing to identify, review, and approve transmission
lines reasonably necessary or appropriate to facilitate achievement
of the renewables portfolio standard.  
   (11) 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 specified reasons. 
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: 
yes   no  .


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

   SECTION 1.    Section 25741.5 of the  
Public Resources Code   , as added by Chapter 1 of the First
Extraordinary Session of the Statutes of 2011, is amended to read:

   25741.5.  (a) By June 30,  2011   2012 
, after providing public notice and an opportunity for public
comment, including holding at least one public workshop, and
following consultation with interested governmental entities, the
commission shall study and provide a report to the Legislature that
analyzes run-of-river hydroelectric generating facilities in British
Columbia, including whether these facilities are, or should be,
included as renewable electrical generation facilities pursuant to
Section 25741 or eligible renewable energy resources pursuant to
Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1
of Division 1 of the Public Utilities Code.
   (b) By completing the study and making recommendations, the
commission shall consider the effect that inclusion would have upon
all of the following:
   (1) Emissions of carbon dioxide and other greenhouse gases.
   (2) Emissions of air pollutants.
   (3) Water quality, recreation, and fisheries.
   (4) Any other environmental impact caused by run-of-river
hydroelectric generating facilities.
   (c) The report submitted pursuant to this section shall be
submitted in compliance with Section 9795 of the Government Code.
   (d) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1,  2015   2016
 .
   SEC. 2.    Section 399.26 of the   Public
Utilities Code   , as added by Chapter 1 of the First
Extraordinary Session of the Statutes of 2011, is amended to read:

   399.26.  (a) In order for the state to meet the requirements of
the California  Renewables Portfolio Standard Program
  renewables portfolio standard program  ,
substantially increased amounts of electricity generated by eligible
renewable energy resources must be integrated with, and
interconnected to, the transmission grid that is either owned by, or
under the operational control of, the local publicly owned electric
utilities and the transmission grid that is under the operational
control of the Independent System Operator.
   (b) The Independent System Operator and the balancing authority of
each area in California shall do both of the following:
   (1) Work cooperatively to integrate and interconnect eligible
renewable energy resources to the transmission grid by the most
efficient means possible with the goal of minimizing the impact and
cost of new transmission needed to meet both reliability needs and
the renewables portfolio standard procurement requirements.
   (2) Accomplish the requirements of paragraph (1) in a manner that
respects the ownership, business, and dispatch models for
transmission facilities owned by electrical corporations, local
publicly owned electric utilities, joint powers agencies, and
independent transmission companies.
   (c) The Independent System Operator shall seek any approvals from
the Federal Energy Regulatory Commission that are necessary to
accomplish the goals and requirements of this article.
   (d) In order to maintain electric service reliability and to
minimize the construction of fossil fuel electrical generation
capacity to support the integration of intermittent renewable
electrical generation into the electrical grid, by July 1, 
2011   2012  , the commission shall determine the
effective load carrying capacity of wind and solar energy resources
on the California electrical grid. The commission shall use those
effective load carrying capacity values in establishing the
contribution of wind and solar energy resources toward meeting the
resource adequacy requirements established pursuant to Section 380.
   SEC. 3.   Section 399.30 of the   Public
Utilities Code   , as added by Chapter 1 of the First
Extraordinary Session of the Statutes of 2011, is amended to read:

   399.30.  (a) In order to fulfill unmet long-term generation
resource needs, each local publicly owned electric utility shall
adopt and implement a renewable energy resources procurement plan
that requires the utility to procure a minimum quantity of
electricity products from eligible renewable energy resources,
including renewable energy credits, as a specified percentage of
total kilowatthours sold to the utility's retail end-use customers,
each compliance period, to achieve the targets of subdivision (c).
   (b) The governing board shall implement procurement targets for a
local publicly owned electric utility that require the utility to
procure a minimum quantity of eligible renewable energy resources for
each of the following compliance periods:
   (1) January 1, 2011, to December 31, 2013, inclusive.
   (2) January 1, 2014, to December 31, 2016, inclusive.
   (3) January 1, 2017, to December 31, 2020, inclusive.
   (c) The governing board of a local publicly owned electric utility
shall ensure all of the following:
   (1) The quantities of eligible renewable energy resources to be
procured for the compliance period from January 1, 2011, to December
31, 2013, inclusive, are equal to an average of 20 percent of retail
sales.
   (2) The quantities of eligible renewable energy resources to be
procured for all other compliance periods reflect reasonable progress
in each of the intervening years sufficient to ensure that the
procurement of electricity products from eligible renewable energy
resources achieves 25 percent of retail sales by December 31, 2016,
and 33 percent of retail sales by December 31, 2020. The local
governing board shall require the local publicly owned utilities to
procure not less than 33 percent of retail sales of electricity
products from eligible renewable energy resources in all subsequent
years.
   (3) A local publicly owned electric utility shall adopt
procurement requirements consistent with Section 399.16.
   (d) The governing board of a local publicly owned electric utility
may adopt the following measures:
   (1) Rules permitting the utility to apply excess procurement in
one compliance period to subsequent compliance periods in the same
manner as allowed for retail sellers pursuant to Section 399.13.
   (2) Conditions that allow for delaying timely compliance
consistent with subdivision (b) of Section 399.15.
   (3) Cost limitations for procurement expenditures consistent with
subdivision (c) of Section 399.15.
   (e) The governing board of the local publicly owned electric
utility shall adopt a program for the enforcement of this article on
or before January 1, 2012. The program shall be adopted at a publicly
noticed meeting offering all interested parties an opportunity to
comment. Not less than 30 days' notice shall be given to the public
of any meeting held for purposes of adopting the program. Not less
than 10 days' notice shall be given to the public before any meeting
is held to make a substantive change to the program.
   (f) (1) Each local publicly owned electric utility shall annually
post notice, in accordance with Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code,
whenever its governing body will deliberate in public on its
renewable energy resources procurement plan.
   (2) Contemporaneous with the posting of the notice of a public
meeting to consider the renewable energy resources procurement plan,
the local publicly owned electric utility shall notify the Energy
Commission of the date, time, and location of the meeting in order to
enable the Energy Commission to post the information on its Internet
Web site. This requirement is satisfied if the local publicly owned
electric utility provides the uniform resource locator (URL) that
links to this information.
   (3) Upon distribution to its governing body of information related
to its renewable energy resources procurement status and future
plans, for its consideration at a noticed public meeting, the local
publicly owned electric utility shall make that information available
to the public and shall provide the Energy Commission with an
electronic copy of the documents for posting on the Energy Commission'
s Internet Web site. This requirement is satisfied if the local
publicly owned electric utility provides the uniform resource locator
(URL) that links to the documents or information regarding other
manners of access to the documents.
   (g) A local publicly owned electric utility shall annually submit
to the Energy Commission documentation regarding eligible renewable
energy resources procurement contracts that it executed during the
prior year, as follows:
   (1) A description of the eligible renewable energy resource,
including the duration of the contract or electricity purchase
agreement.
   (2) A description and identification of the electrical generating
facility providing the eligible renewable energy resource under the
contract.
   (3) An estimate of the percentage increase in the utility's total
retail sales of electricity from eligible renewable energy resources
that will result from the contract.
   (h) A public utility district that receives all of its electricity
pursuant to a preference right adopted and authorized by the United
States Congress pursuant to Section 4 of the Trinity River Division
Act of August 12, 1955 (Public Law 84-386) shall be in compliance
with the renewable energy procurement requirements of this article.
   (i) For a local publicly owned electric utility that was in
existence on or before January 1, 2009, that provides retail electric
service to 15,000 or fewer customer accounts in California, and is
interconnected to a balancing authority located outside this state
but within the WECC, an eligible renewable energy resource includes a
facility that is located outside California that is connected to the
WECC transmission system, if all of the following conditions are
met:
   (1) The electricity generated by the facility is procured by the
local publicly owned electric utility, is delivered to the balancing
authority area in which the local publicly owned electric utility is
located, and is not used to fulfill renewable energy procurement
requirements of other states.
   (2) The local publicly owned electric utility participates in, and
complies with, the accounting system administered by the Energy
Commission pursuant to this article.
   (3) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the renewables portfolio standard
procurement requirements.
   (j) Notwithstanding subdivision (a), for a local publicly owned
electric utility that is a joint powers authority of districts
established pursuant to state law on or before January 1, 2005, that
furnish electric services other than to residential customers, and is
formed pursuant to the Irrigation District Law (Division 11
(commencing with Section 20500) of the Water Code), the percentage of
total kilowatthours sold to the district's retail end-use customers,
upon which the renewables portfolio standard procurement
requirements in subdivision (b) are calculated, shall be based on the
authority's average retail sales over the previous seven years. If
the authority has not furnished electric service for seven years,
then the calculation shall be based on average retail sales over the
number of completed years during which the authority has provided
electric service.
   (k) A local publicly owned electric utility in a city and county
that only receives greater than 67 percent of its electricity sources
from hydroelectric generation located within the state that it owns
and operates, and that does not meet the definition of a "renewable
electrical generation facility" pursuant to Section 25741 of the
Public Resources Code, shall be required to procure eligible
renewable energy resources, including renewable energy credits, to
meet only the electricity demands unsatisfied by its hydroelectric
generation in any given year, in order to satisfy its renewable
energy procurement requirements.
   (l) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the Energy Commission, all of
the following:
   (1) Expenditures of public goods funds collected pursuant to
Section 385 for eligible renewable energy resource development.
Reports shall contain a description of programs, expenditures, and
expected or actual results.
   (2) The resource mix used to serve its customers by energy source.

   (3) The utility's status in implementing a renewables portfolio
standard pursuant to subdivision (a) and the utility's progress
toward attaining the standard following implementation.
   (m) A local publicly owned electric utility shall retain
discretion over both of the following:
   (1) The mix of eligible renewable energy resources procured by the
utility and those additional generation resources procured by the
utility for purposes of ensuring resource adequacy and reliability.
   (2) The reasonable costs incurred by the utility for eligible
renewable energy resources owned by the utility.
   (n) On or before July 1,  2011   2012  ,
the Energy Commission shall adopt regulations specifying procedures
for enforcement of this article. The regulations shall include a
public process under which the Energy Commission may issue a notice
of violation and correction against a local publicly owned electric
utility for failure to comply with this article, and for referral of
violations to the State Air Resources Board for penalties pursuant to
subdivision (o).
   (o) (1) Upon a determination by the Energy Commission that a local
publicly owned electric utility has failed to comply with this
article, the Energy Commission shall refer the failure to comply with
this article to the State Air Resources Board, which may impose
penalties to enforce this article consistent with Part 6 (commencing
with Section 38580) of Division 25.5 of the Health and Safety Code.
Any penalties imposed shall be comparable to those adopted by the
commission for noncompliance by retail sellers.
   (2) If Division 25.5 (commencing with Section 38500) of the Health
and Safety Code is suspended or repealed, the State Air Resources
Board may take action to enforce this article on local publicly owned
electric utilities consistent with Section 41513 of the Health and
Safety Code, and impose penalties on a local publicly owned electric
utility consistent with Article 3 (commencing with Section 42400) of
Chapter 4 of Part 4 of, and Chapter 1.5 (commencing with Section
43025) of Part 5 of, Division 26 of the Health and Safety Code.
   (3) For the purpose of this subdivision, this section is an
emissions reduction measure pursuant to Section 38580 of the Health
and Safety Code.
   (4) If the State Air Resources Board has imposed a penalty upon a
local publicly owned electric utility for the utility's failure to
comply with this article, the State Air Resources Board shall not
impose an additional penalty for the same infraction, or the same
failure to comply, with any renewables procurement requirement
imposed upon the utility pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code).
   (5) Any penalties collected by the State Air Resources Board
pursuant to this article shall be deposited in the Air Pollution
Control Fund and, upon appropriation by the Legislature, shall be
expended for reducing emissions of air pollution or greenhouse gases
within the same geographic area as the local publicly owned electric
utility.
   (p) The commission has no authority or jurisdiction to enforce any
of the requirements of this article on a local publicly owned
electric utility. All matter omitted in this version of the bill
appears in the bill as introduced in the Senate, December 6, 2010.
(JR11)