Bill Text: CA AB724 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Clean Energy Jobs and Investment Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2011-10-21 - Measure version as amended on September 9 corrected. [AB724 Detail]
Download: California-2011-AB724-Amended.html
Bill Title: Clean Energy Jobs and Investment Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2011-10-21 - Measure version as amended on September 9 corrected. [AB724 Detail]
Download: California-2011-AB724-Amended.html
BILL NUMBER: AB 724 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 7, 2011
AMENDED IN SENATE AUGUST 30, 2011
AMENDED IN SENATE AUGUST 18, 2011
AMENDED IN ASSEMBLY MAY 17, 2011
AMENDED IN ASSEMBLY APRIL 28, 2011
INTRODUCED BY Assembly Member Bradford
( Principal coauthor: Assembly Member
Williams )
FEBRUARY 17, 2011
An act to add Chapter 7.2 (commencing with Section 25621)
to Division 15 of, and to repeal and add Section 25740.5 of, the
Public Resources Code, and to amend Sections 384, 399.8, and 9615 of,
and to add Sections 384.3 and 9615.1 to, the Public Utilities Code,
relating to energy, and making an appropriation therefor.
An act to amend Section 25744 of, to add Sections 25740.6, and
25744.7 to, and to add Chapter 7.2 (commencing with Section 25621) to
Division 15 of, and to repeal Sections 25740.5, 25743, 25744.5,
25746, and 25751 of, the Public Resources Code, and to amend Sections
384 and 399.8 of, and to add Section 399.8.5 to, and to add Chapter
12 (commencing with Section 2120) to Part 1 of Division 1 of, the
Public Utilities Code, relating to energy, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 724, as amended, Bradford. Clean Energy Jobs and Investment
Act.
(1) Under the Public Utilities Act, the Public Utilities
Commission (PUC) has regulatory authority over public utilities,
including electrical corporations. The Public Utilities Act requires
the PUC to require, until January 1, 2012, an electrical corporation
to identify a separate electrical rate component (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 Public
Utilities Act is a crime.
This bill would extend this requirement to January 1, 2020.
Because a violation of this requirement is a crime, this bill would
impose a state-mandated local program.
The bill also would increase the amount of funds the PUC would
require an electrical corporation to collect for these purposes.
This bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIII A of the California Constitution, and thus would require
for passage the approval of 2/3 of the membership of each house of
the Legislature.
(2) Existing law requires that the moneys collected between
January 1, 2007, and January 1, 2012, from the electrical
corporations for public interest research, development, and
demonstration projects be deposited in the Public Interest Research,
Development, and Demonstration Fund and be used for the purposes of
the Public Interest Research, Demonstration, and Development Program.
This bill would, commencing January 1, 2012, repeal the Public
Interest Research, Demonstration, and Development Program for most
purposes and would enact the Clean Energy Jobs and Investment Act.
This bill would create the Clean Energy Innovation Program Fund in
the State Treasury and require that any funds generated from the
public goods charge collected before January 1, 2012, be transferred
to the Energy Commission's Public Interest Research, Development, and
Demonstration Wrap-Up Account, which the bill would create in the
Clean Energy Innovation Program Fund, to be available, upon
appropriation by the Legislature, for expenditure pursuant to
provisions in effect prior to the enactment of this act.
(3) Existing law requires the Energy Commission to establish
programs to optimize public investment and ensure that the most
cost-effective and efficient investments in renewable energy
resources are vigorously pursued (Renewable Energy Resources
Program). Existing law requires, until January 1, 2012, that moneys
from the public goods charge collected for renewable energy be
transferred to the Renewable Resource Trust Fund, a continuously
appropriated fund, for the purpose of implementing the program.
This bill would revise and recast the Renewable Energy Resources
Program to, among other things, provide investment in energy storage
technologies. The bill would extend to January 1, 2020, the transfer
of the public goods charge collected for renewable energy to the
Renewable Resource Trust Fund. The bill would provide that moneys in
the Renewable Resource Trust Fund, upon appropriation by the
Legislature, be expended for the purposes of the program.
(4) Decisions of the PUC adopted the California Solar Initiative
(CSI). Existing law requires the PUC to undertake certain steps in
implementing the CSI. Existing law requires the PUC to ensure that
the total cost of the CSI over the duration of the program does not
exceed $3,350,000,000, including $400,000,000 from the Emerging
Renewable Resources Account within the Renewable Resource Trust Fund,
for programs for the installation of solar energy systems, as
defined, on new construction administered by the Energy Commission
(New Solar Homes Partnership).
This bill would provide that the $400,000,000 referenced above be
subject to supervision by the PUC. The bill would require the Energy
Commission to revise its guidelines applicable to the New Solar Homes
Partnership so that the program accomplishes specified matter.
(5) The bill would not become operative unless SB 870 of the
2011-12 Regular Session of the Legislature is enacted on or before
January 1, 2012.
(6) 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.
(7) This bill would declare that it is to take effect immediately
as an urgency statute.
(1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. The Reliable Electric Service Investments
Act, within the Public Utilities Act, requires the PUC to require the
state's 3 largest electrical corporations, until January 1, 2012, to
identify a separate electrical rate component to fund energy
efficiency, renewable energy, and research, development, and
demonstration programs. Existing PUC resolutions refer to the
nonbypassable rate component as a "public goods charge."
Existing law establishes the Renewable Resource Trust Fund in the
State Treasury as a fund that is continuously appropriated, except
for administrative expenses incurred by the State Energy Resources
Conservation and Development Commission (Energy Commission), for the
implementation of the renewable energy resources program that is
administered by the Energy Commission. Existing law requires that
specified portions of the moneys collected as a part of the public
goods charge to fund renewable energy be deposited into 3 specified
accounts within the fund to be used for specified purposes. Existing
law states legislative directives, objectives, and recommendations on
the allocation of moneys in the fund and requires that moneys
collected between January 1, 2007, and January 1, 2012, be used for
the specified purposes.
This bill would require the PUC to require the state's 3 largest
electrical corporations to collect the public goods charge until
January 1, 2020. By extending collection of the public goods charge,
the bill would constitute a change in state statute that would result
in a taxpayer paying a higher tax within the meaning of Section 3 of
Article XIII A of the California Constitution, and thus would
require for passage the approval of 2/3 of the membership of each
house of the Legislature.
Because the bill would extend collection of the portion of the
public goods charge that is transferred to the Renewable Resource
Trust Fund, a continuously appropriated fund, it would make an
appropriation.
(2) This bill would require the PUC, in coordination with the
State Energy Resources Conservation and Development Commission, to
develop and authorize fund mechanisms to finance comprehensive energy
efficiency programs for residential, commercial, industrial, and
public building sectors. The bill would establish criteria by which
the PUC would evaluate the state's energy efficiency investments. The
bill would require the PUC to administer funds generated by the
collection of the public good charge that is allocated for energy
efficiency.
(3) Under existing law, a violation of the Public Utilities Act or
any order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the above provisions of this bill are within the Public
Utilities Act and require action by the PUC to implement its
requirements, a violation of these provisions would impose a
state-mandated local program by creating a new crime.
(4) Existing law requires that the moneys collected between
January 1, 2007, and January 1, 2012, from the electrical
corporations for public interest research, development, and
demonstration projects be deposited in the Public Interest Research,
Development, and Demonstration Fund and be used for the purposes of
the Public Interest Energy Research, Demonstration, and Development
Program.
This bill would enact the Clean Energy Jobs and Investment Act.
The bill would establish the Clean Energy Investment Council
consisting of specified individuals to provide strategic policy
guidance for the implementation of the act. The bill would require
the State Energy Resources Conservation and Development Commission
(Energy Commission) to establish and administer the California Energy
Innovation Program (CEIP) to fund research, development, and
demonstration projects that may lead to technological advancement or
applied scientific breakthroughs to overcome technical, financial,
social, institutional, and other barriers that prevent the
achievement of the state's energy policy goals. The bill would
require the Energy Commission to convene, no less than twice a year,
meetings of the CEIP Advisory Council consisting of members
representing specified entities and would require the council to
identify the technological challenges that most warrant funding under
the CEIP and opportunities for joint funding of projects and to make
recommendations to avoid funding duplicative projects. The bill
would require the Energy Commission to adopt regulations or modify
existing regulations to implement the CEIP. The bill would require
the Energy Commission to consult with the CEIP Advisory Council to
establish a process for tracking the progress and outcome of funded
projects. The bill would require the Energy Commission to consult
with the CEIP Advisory Council and the Treasurer to establish terms
that may be imposed as conditions for the receipt of CEIP funding.
The bill would require the Energy Commission, no later than March 31
of each year, to prepare and submit to the Legislature an annual
report regarding projects funded by the CEIP. The bill would
establish the Clean Energy Innovation Program Fund in the State
Treasury and would provide that moneys in the fund, upon
appropriation by the Legislature, be expended by the Energy
Commission to implement the CEIP. The bill would provide that
unencumbered moneys remaining in the Public Interest Research,
Development, and Demonstration Fund as of January 1, 2012, be
transferred to the Clean Energy Innovation Program Fund, which would
be established by this bill. The bill would establish the Public
Interest Research, Development, and Demonstration Program Wrap-Up
Account within the fund and would transfer the encumbered moneys in
the Public Interest Research, Development and Demonstration Program
Fund, as of January 1, 2012, to the account.
(5) Existing law requires the State Energy Resources Conservation
and Development Commission to establish programs to optimize public
investment and ensure that the most cost-effective and efficient
investments in renewable energy resources are vigorously pursued
(Renewable Energy Resources Program). Existing law requires, until
January 1, 2012, that moneys from the public goods charge collected
for renewable energy be transferred to the Renewable Resource Trust
Fund, a continuously appropriated fund, for the purpose of
implementing the program.
This bill would revise and recast the Renewable Energy Resources
Program to, among other things, provide investment in energy storage
technologies. The bill would establish the Clean Energy Investment
Team within the commission for specified purposes of the program. The
bill would extend to January 1, 2020, the expenditures of the public
goods charge collected for renewable energy to the Renewable
Resource Trust Fund. Because the bill would revise the purposes of
the Renewable Energy Resources Program and extend the deposit of
moneys into a continuously appropriated fund, this bill would make an
appropriation.
(6) Existing law requires each local publicly owned electric
utility to establish a nonbypassable usage based charge on local
distribution service to fund investments in specified public purpose
programs, including energy efficiency and conservation, investment in
renewable energy resources, research, development, and demonstration
programs, and providing services for low-income electricity
customers. The charge is required to be not less than the lowest
expenditure of the 3 largest electrical corporations in California
based on a percentage of revenue. Existing law requires local
publicly owned electric utilities to annually report to its customers
and to the Energy Commission information relative to its investments
in energy efficiency and demand reduction programs, a description of
those programs, expenditures, cost-effectiveness, and expected and
actual energy efficiency savings and demand reduction results.
Existing law additionally requires each local publicly owned electric
utility to develop and submit a report to the Energy Commission with
certain information relative to its energy efficiency programs and
requires the Energy Commission to include a summary of the
information in an integrated energy policy report pursuant to a
specified law.
This bill would require each local publicly owned electric utility
to make information available in electronic form on an Internet Web
site relative to the utility's investments in energy efficiency
programs, require the utility to provide the Energy Commission with
information as to how to access the information, and require the
Energy Commission to make the information available on its Internet
Web site, including providing a uniform resource locator (URL)
connection that will enable members of the public to access the
information. The bill would require each local publicly owned
electric utility to annually report to its customers and the Energy
Commission information relative to its research, development, and
demonstration programs, and its provision of services for low-income
electricity customers.
(7) 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.
Vote: 2/3. Appropriation: yes no .
Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 7.2 (commencing with Section
25621) is added to Division 15 of the Public Resources
Code , to read:
CHAPTER 7.2. CLEAN ENERGY JOBS AND INVESTMENT ACT
Article 1. General Provisions
25621. This chapter shall be known and may be cited as the Clean
Energy Jobs and Investment Act.
25621.1. The Legislature finds and declares all of the following:
(a) Investing in clean energy creates jobs, attracts and grows
businesses, and increases California's economic competitiveness.
(b) Investing in energy efficiency provides lower energy bills for
individual households and businesses and saves all ratepayers money
through reduced need for new powerplants and transmission and
distribution systems.
(c) Clean energy investments benefit ratepayers by cutting energy
waste, diversifying energy supplies, increasing energy security and
grid reliability, reducing harmful air pollutants, and protecting
public health and the environment.
(d) California has been a leader in clean energy development and
deployment, saving consumers billions of dollars from increased
energy efficiency, creating new jobs and businesses, and fostering
innovation through research and development.
(e) Meeting California's renewable energy, energy efficiency, and
emissions reduction policies will require strategic public
investments in clean energy research, development, deployment, and
commercialization.
25621.2. It is the intent of the Legislature that investments
made pursuant to this chapter do all of the following:
(a) Develop and deploy clean energy technologies that maximize job
creation and regional sustainability, strengthen California
businesses and economic competitiveness, and provide multiple
benefits to ratepayers.
(b) Save ratepayers money through reduced need for new powerplants
and transmission and distribution systems.
(c) Accelerate the development and deployment of clean energy
technologies that meet the California renewables portfolio standard
specified in Chapter 1 of the Statutes of the First Extraordinary
Session of 2011, energy storage requirements specified in Chapter 469
of the Statutes of 2010, Chapter 470 of the Statutes of 2009, and
subparagraph (C) of paragraph (9) of subdivision (b) of Section 454.5
of the Public Utilities Code.
(d) Respond to changing energy and technology market conditions.
(e) Leverage investments in clean energy to maximize ratepayer
benefits, reduce costs, and achieve sustainable changes in the market
so that public investment will no longer be needed.
(f) Help local governments to plan, permit, finance, and implement
clean energy development.
(g) Maximize opportunities for low-income households and
disadvantaged communities, beyond those already assisted by the
Public Utilities Commission's program for low-income energy
assistance and the California rate assistance program for low-income
rate discounts in urban and rural areas of the state, to participate
in these programs.
(h) Promote business and employment opportunities for small
business and women-, minority-, veteran-, and disabled-owned
businesses.
25621.3. For purposes of this chapter, the following terms mean
the following:
(a) "Biogas" means digester gas, landfill gas, and any gas derived
from an eligible biomass feedstock.
(b) "Biomass" means an organic material not derived from fossil
fuels, including, but not limited to, agricultural crops,
agricultural wastes and residues, waste pallets, crates, dunnage,
manufacturing and construction wood wastes, landscape and
right-of-way tree trimmings, mill residues that result from milling
lumber, rangeland maintenance residues, biosolids, sludge derived
from organic matter, and wood and wood waste from timbering
operations.
(c) "CEIP" or "program" means the Clean Energy Innovation Program,
formerly known as the Public Interest Energy Research (PIER)
program, developed pursuant to Section 25621.12.
(d) "Clean energy" means energy efficiency, renewable energy,
integration of electric vehicles, distributed generation, energy
storage, and integrated demand-side management.
(e) "Comprehensive energy efficiency retrofit," "whole house
retrofit," and "whole building retrofit" mean energy efficiency
retrofits that achieve greater than 20-percent energy savings through
a comprehensive package of audits, demand-side management options,
and energy-saving improvements, such as insulation and duct sealing;
heating, ventilation, and cooling system improvements; window and
appliance upgrades; lighting upgrades; demand response cool roofs;
measures to ensure that retrofits and existing infrastructure
continue to operate as efficiently as possible; and other measures to
increase energy efficiency.
(f) "Disadvantaged community" has the same meaning as that set
forth in Section 79505.5 of the Water Code.
(g) "Distributed generation" means an electrical generation
facility that is 20 megawatts or smaller in size and located close to
a load center.
(h) "Energy storage" means technology or resources capable of
absorbing energy, storing it for a period of time, and thereafter
dispatching the energy, including energy storage management systems.
(i) "Financial investment tools" includes revolving loans,
low-interest loans, loan-loss reserves, loan guarantees, interest
rate buy-down, property-secured financing, on-bill financing or
repayment, grants, rebates, incentives, regional municipal financing
programs, performance guarantees, use of the California
Infrastructure and Economic Development Bank, the California
Alternative Energy Transportation Financing Authority, or other
appropriate financing mechanisms.
(j) "Grid" means California's electrical grid, including both
transmission and distribution systems.
(k) "Grid integration" means the interconnection, and the seamless
and reliable operation, of generation and demand management
resources and strategies into the grid.
(l) "Low income" means an income at a level that is 200 percent of
the federal poverty level or lower.
(m) "Renewable energy" means eligible renewable energy resources
as defined in Section 399.12 of the Public Utilities Code.
SEC. 2. Section 25740.5 of the Public
Resources Code , as amended by Section 5 of Chapter 1 of
the First Extraordinary Session of the Statutes of 2011, is repealed.
25740.5. (a) The commission shall optimize public investment and
ensure that the most cost-effective and efficient investments in
renewable energy resources are vigorously pursued.
(b) The commission'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 renewable
electrical generation facilities located in this state, 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 commission, 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 commission. The commission may require financial
disclosure from applicants for purposes of this paragraph.
(5) Specified fuel cell technologies, if the commission 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 commission finds
that the existing wind-generating resources are a cost-effective
source of reliable energy and environmental benefits compared with
other renewable electrical generation facilities located in this
state, and that the existing wind-generating resources require
financial assistance to remain economically viable. The commission
may require financial disclosure from applicants for the purposes of
this paragraph.
(f) 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, shall be used
for the purposes specified in this chapter.
SEC. 3. Section 25740.6 is added to the
Public Resources Code , to read:
25740.6. (a) The commission shall implement the Clean Energy
Investment Program to support 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 chapter
include, but are not limited to, those which will maximize job
creation and economic growth through the deployment and
commercialization of renewable energy, grid integration, and energy
storage technologies. Activities authorized by this chapter shall
support and foster the development of a diverse, reliable, and
environmentally sustainable portfolio of renewable energy sources,
including, but not limited to, distributed generation, demonstration
projects on California state buildings or property, renewable
generation on farmland or from agricultural, livestock, poultry and
food processing operations, wastewater, the New Solar Homes
Partnership (NSHP), energy storage, clean energy manufacturing in
California, existing and advanced biogas, biomass, and other clean
energy technologies, and workforce development.
(c) Any investments in biomass or biogas made pursuant to this
section shall be targeted to incubate and commercialize technologies
and facilities that do one or more of the following:
(1) Increase efficiency and reduce air pollution from existing
biomass facilities.
(2) Incubate and commercialize technologies and facilities that
generate energy from livestock, poultry, agricultural, wastewater,
and food processing byproducts or waste.
(3) Develop or expand facilities to capture emissions and generate
biogas from wastewater treatment facilities, including codigestion
or landfills.
(4) Generate energy from community-scale, woody biomass facilities
that promote safe and resilient forests, provide rural community
benefits, and protect air and water quality, based on criteria
determined by the commission in coordination with the Natural
Resources Agency and the California Environmental Protection Agency.
(d) (1) Not less than twenty-five million dollars ($25,000,000) of
the funds collected annually for 2012 and 2013 pursuant to paragraph
(1) of subdivision (d) of Section 399.8 of the Public Utilities Code
shall be used for the purposes of incubating and commercializing
technologies and facilities that generate energy from livestock,
poultry, agricultural or food processing byproducts, or waste, and
biomass programs that would provide financial incentives to new or
existing biomass electric generating facilities that purchase and
convert agricultural and forestry waste and residues.
(2) New projects eligible under this subdivision may receive
matching grants of up to 25 percent of the total project costs not to
exceed two million five hundred thousand dollars ($2,500,000) per
project.
(e) Any direct financial incentives determined to be necessary by
the commission and made available to existing renewable biomass
generation facilities shall be contingent upon utilization of
regional agricultural forestry and waste residues.
(f) (1) In implementing the program, the commission may, in
coordination with the Office of Planning and Research and the
Secretary of the Natural Resources Agency, provide targeted financial
and technical assistance to local and regional governments for the
planning, siting, and permitting of renewable energy facilities.
These investments may include grants to enable local governments to
participate in regional energy and conservation planning pursuant to
the Natural Communities Conservation Planning Act, (Chapter 10
(commencing with Section 2800) of Division 3 of the Fish and Game
Code), Chapter 10 of the Statutes of the 2011-12 First Extraordinary
Session, and other applicable laws. These investments may also
include the development of model permitting applications and
ordinances for distributed generation facilities and other measures
that facilitate efficient and cost-effective development of renewable
energy.
(2) Notwithstanding Section 2851 of the Public Utilities Code, the
funds collected pursuant to Section 399.8 of the Public Utilities
Code and used for the California Solar Initiative pursuant to
paragraph (3) of subdivision (e) of Section 2851 of the Public
Utilities Code shall be supervised by the Public Utilities
Commission. The Public Utilities Commission shall supervise the
program according to guidelines established by the commission
pursuant to this chapter. The commission shall adopt and update New
Solar Home Partnership guidelines and rebate levels as needed.
(3) (A) The New Solar Home Partnership shall continue to be
administered according to guidelines established by the commission
pursuant to Chapter 8.6 (commencing with Section 25740) and Chapter
8.8 (commencing with Section 25780). The commission shall adopt and
update the New Solar Homes Partnership program guidelines and rebate
levels as needed to ensure that the New Solar Homes Partnership
funding does all of the following:
(i) Includes solar hot water heating.
(ii) Gives priority to new housing developments in economically
distressed and disadvantaged communities.
(iii) Seeks to provide no less than 25 percent of the funds
collected for the NSHP to be expended for multifamily units and
rental dwellings.
(iv) Seeks to provide no less than 25 percent of the funds
collected for the NSHP shall be expended in disadvantaged
communities.
(v) Provides for increased accountability, a streamlined
application process.
(B) This paragraph does not prevent New Solar Home Partnerships
funds from being allocated to otherwise eligible New Solar Home
Partnerships projects if the designated categories are not reserved
annually.
(4) Funds collected through the renewable energy public goods
charge for the support of the New Solar Homes Partnership shall be
allocated and administered pursuant to Section 25744.6.
(5) Within 90 days of the enactment of the act adding this section
during the first year of the 2011-12 Regular Session, the commission
shall establish and impose project costs caps for residential and
nonresidential projects under the New Solar Home Partnership, based
on national and state installed cost data.
(g) The commission shall, in coordination with other state
entities, periodically analyze the renewable technology market and
workforce trends and identify barriers to renewable energy industry
development in the state.
(h) The commission and the Office of Planning and Research shall
coordinate with state and local environmental regulators to identify
regulatory barriers that prevent or delay implementation of renewable
energy and energy efficiency projects.
(i) (1) The commission shall 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, 2012, 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. The
intent of this requirement is 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.
(j) The commission shall create and consult with an advisory body
to work with the commission as it develops the investment plan
pursuant to subdivision (g). 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). 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.
(k) Membership of the advisory body created pursuant to
subdivision (h) shall include, 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. The
advisory body shall meet at least twice annually to provide strategic
and technical guidance.
(l) 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.
(m) 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.
(n) The commission may make a single source or sole source award
pursuant to this section. The same requirements set forth in former
Section 25620.5, as described in paragraph (3), shall apply to awards
made on a single source basis or a sole source basis.
(o) (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
section.
(3) Moneys collected on and after January 1, 2007, and before
January 1, 2012, shall be expended in accordance with former Section
25740.5 and former Sections 25742 to 25751, inclusive, as those
former sections read on the day before the date that the act adding
this section was enacted during the first year of the 2011-12 Regular
Session.
SEC. 4. Section 25743 of the Public
Resources Code is repealed.
25743. (a) The commission 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 commission 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 commission
pursuant to paragraph (1) in a manner that maximizes the economic
benefit to all customer classes that funded the New Renewable
Resources Account.
SEC. 5. 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 on and after January
1, 2007, and before January 1, 2012, shall be used for a
multiyear, consumer-based program to foster the development of
emerging renewable technologies in distributed generation
applications.
(b) Any 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 commission. The commission
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
commission and are not eligible for rebates, buydowns, or similar
incentives from any other commission 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
commission 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 commission 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 commission 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 commission 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 commission shall publish and make
available to the public a statement on 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 commission 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)
(c) Any 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. 6. Section 25744.5 of the Public
Resources Code is repealed.
25744.5. The commission 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. 7. Section 25744.7 is added to the
Public Resources Code , to read:
25744.7. (a) The commission shall adopt guidelines governing the
funding programs authorized under this section and Section 25740.6,
as specified in, and subject to, Section 25747.
(b) Funds to further the purposes of this section and Section
25740.6 may be committed for multiple years.
(c) The commission may award funding under this section and
Section 25740.6 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 25740.6,
the amount of the award, and the terms and conditions of the award
are public information.
(e) The commission shall report to the Legislature on or before
January 31, 2013, and annually thereafter, regarding the results of
the mechanisms funded pursuant to this section and Section 25740.6.
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 25740.6.
(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) An existing biomass electricity-generating facility shall not
be eligible for funding in the form of electricity production
incentives under this section and Section 25740.6 unless it meets
other requirements specified in the commission's investment plan and
applicable guidelines.
(g) A small-scale distributed electricity-generating facility
using wind resources or a fuel cell system using renewable fuels
shall not be eligible for funding in the form of rebates, buy-downs,
or equivalent incentives under this section and Section 25740.6
unless the emerging technology being funded satisfies the
requirements under paragraph (3) of subdivision (b) of Section 25744
and meets other requirements specified in the commission's investment
plan and applicable guidelines.
(h) 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,
which is hereby established in the State Treasury, for the purposes
specified in Section 25740.6. After setting aside in the fund money
that may be needed for expenditures authorized by the annual Budget
Act in accordance with subdivision (i), the Treasurer shall
immediately deposit money received pursuant to this section into the
Renewable Resource Trust Fund.
(i) 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 chapter.
SEC. 8. Section 25746 of the Public
Resources Code is repealed.
25746. (a) One percent of the money collected pursuant to the
renewable energy public goods charge shall be used in accordance with
this chapter to promote renewable energy and disseminate information
on renewable energy technologies, including emerging renewable
technologies, and to help develop a consumer market for renewable
energy and for small-scale emerging renewable energy technologies.
(b) If the commission provides funding for a regional accounting
system to verify compliance with the renewable portfolio standard by
retail sellers, pursuant to subdivision (b) of Section 399.13 of the
Public Utilities Code, the commission shall recover all costs from
user fees.
SEC. 9. Section 25751 of the Public
Resources Code is repealed.
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 commission 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 commission 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 commission 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 commission without regard to fiscal year for the
purposes enumerated in this chapter.
(e) Upon notification by the commission, 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
commission based on the procedures it adopts under this chapter.
Based on the eligibility of each award, the commission 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 commission 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 commission to represent a portion of a multiyear
funding commitment.
(f) The commission 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. 10. Section 384 of the Public
Utilities Code is amended to read:
384. (a) Funds transferred to the State Energy Resources
Conservation and Development Commission 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 The Clean
Energy Innovation Program Fund is hereby created in the State
Treasury to be available, upon appropriation by the Legislature, for
expenditure pursuant to Article 2 (commencing with Section 25261.10)
of Chapter 7.2 of Division 15 of the Public Resources
Code. Funds collected from the utilities before January 1,
2012, shall be transferred to the Energy Commission's Public
Interest Research, Development, and Demonstration Wrap-Up Account,
which is hereby created in the Clean Energy Innovation Program Fund,
to be available, upon appropriation by the Legislature, for
expenditure pursuant to Chapter 7.1 (commencing with Section 25620)
of Division 15 of the Public Resources Code. Funds collected from the
utilities on and after January 1, 2012, shall be transferred to the
Clean Energy Innovation Program Fund. These are trust funds 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)
(b) The State Energy
Resources Conservation and Development Commission 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. 11. 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 2012 , and ending
January 1, 2012 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 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
2011 . 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 2011 . 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
2012 , as follows:
(1) Two hundred twenty-eight fifty
million dollars ($228,000,000) ($250,000,000)
per year in total for energy efficiency and conservation
activities, sixty-five seventy-five
million five hundred thousand dollars
($65,500,000) ($75,000,000) in total per year
for renewable energy, and sixty-two
seventy-five million five hundred thousand
dollars ($62,500,000) ($75,000,000) 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 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) The commission and the Energy Commission shall retain and
continue their oversight responsibilities as set forth in Sections
381 and 383, 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. 12. Section 399.8.5 is added to the
Public Utilities Code , to read:
399.8.5. (a) It is the intent of the Legislature that the New
Solar Homes Partnership established under paragraph (3) of
subdivision (e) of Section 2851 continue to meet the solar energy
system goals established in Section 25710 of the Public Resources
Code and Section 2851.
(b) The Energy Commission shall, in consultation with the
commission, determine the reasonable portion of the seventy-five
million dollars ($75,000,000) collected for renewable energy programs
pursuant to paragraph (1) of subdivision (d) of Section 399.8 that
shall be necessary to support the New Solar Homes Partnership program
in accordance with the expenditure requirements of paragraph (3) of
subdivision (e) of Section 2851 as follows:
(1) In 2012 and 2013, the annual amount for the New Solar Homes
Partnership shall be twenty-five million dollars ($25,000,000),
collected and administered by San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company.
(2) In 2013, for the years 2014 to 2016, inclusive, the Energy
Commission shall recommend an annual amount for the New Solar Homes
Partnership program, considering factors such as past and projected
new housing market demand and conditions, while balancing the other
goals of the Renewable Resource Trust Fund.
(c) After receiving the determination from the Energy Commission,
the commission shall conduct an expedited proceeding to evaluate the
funding requirements for the years 2014 to 2016, inclusive, and order
San Diego Gas and Electric Company, Southern California Edison
Company, and Pacific Gas and Electric Company to collect and
administer the funding amounts for the New Homes Solar Partnership
established under paragraph (3) of subdivision (e) of Section 2851
through December 31, 2016.
SEC. 13. Chapter 12 (commencing with Section 2120)
is added to Part 1 of Division 1 of the Public Utilities
Code , to read:
CHAPTER 12. INVESTMENT IN ENERGY EFFICIENCY RETROFITS
2120. (a) The commission shall implement the following elements
and principles for the state's investments in energy efficiency
retrofits pursuant to this chapter and Sections 399.4, 399.8, and
454.5.
(b) The commission, in evaluating energy efficiency investments
under its existing statutory authority, shall do all of the
following:
(1) Maximize in-state job development.
(2) Create and expand financing mechanisms that produce long-term
benefits and that can become self-sustaining over time.
(3) Ensure that moneys collected by an electrical corporation are
expended to provide financial investment tools to the ratepayers of
that electrical corporation. This section does not prohibit
expenditure of program funds to subsidize the manufacture,
distribution of the wholesale or retail stocking of efficient
appliances, or the provision of appliance rebates from retail outlets
within the service territory of an electrical corporation.
(4) Maximize the participation of energy users and the achievement
of energy efficiency savings.
(5) Coordinate with state and local agencies to identify and
address any regulatory barriers that may prevent or delay
implementation of energy efficiency improvements.
(c) It is the intent of the Legislature that, to the extent
practicable, the commission shall adopt definitions of "cost
effective" for the energy efficiency program participants consistent
with other state and federal definitions.
(d) Funds collected pursuant to Section 399.8 and allocated to
energy efficiency programs, consistent with subparagraph (C) of
paragraph (9) of subdivision (b) of Section 454.5, shall be used to
invest in and leverage resources for energy efficiency retrofits. The
funds used pursuant to this section shall be targeted to do any of
the following:
(1) Achieve the goals in Sections 399.4 and 399.8, subparagraph
(C) of paragraph (9) of subdivision (b) of Section 454.5, the scoping
plan adopted pursuant to Section 38561 of the Health and Safety
Code, Chapter 470 of the Statutes of 2009, Chapter 496 of the
Statutes of 2010, the commission's energy efficiency goals and
policies, and other state energy efficiency policies.
(2) Maximize energy savings, job creation, and economic
development by establishing financing mechanisms that leverage funds
provided pursuant to this chapter to the maximum extent feasible,
encourage significant private investments in energy efficiency,
operate in coordination with other energy efficiency and clean energy
programs, and seek to achieve lasting market transformation and
sustainability and maximize participation in cost-effective energy
saving retrofits.
(3) Develop and adopt financial investment tools for comprehensive
energy retrofits in coordination with other commission and utility
efficiency programs and consistent with guidelines adopted pursuant
to Chapter 470 of the Statutes of 2009 and in a manner that leverages
ratepayer funds to the maximum extent feasible and is cost effective
to increase investment in energy efficiency where appropriate in a
manner that will ensure that the investments produce energy savings.
(4) Ensure opportunities for low- and moderate-income households,
including multifamily households, and economically disadvantaged
communities to participate in financial investment tools for
comprehensive energy efficiency retrofits, and include preferences
for programs and program providers in economically disadvantaged
communities in coordination with those services made available
pursuant to Sections 739 and 2790.
(5) Coordinate with other energy efficiency programs, including
low-income energy efficiency and weatherization programs, including
those administered by other state and local agencies and
community-based organizations, to maximize the effectiveness and
efficiency of both programs.
(6) Increase participation in energy efficiency financing and
implementation by independent third-party energy efficiency service
providers, including, but not limited to, local and regional
government energy offices, nonprofit organizations, California
Conservation Corps, community organizations such as conservation
corps and youth corps, small businesses, and
minority-, women-, and disabled
veteran-owned businesses.
(7) Coordinate with the Clean Energy Innovation Program to ensure
that proven new technologies are integrated into program
implementation.
(8) Require independent evaluation, measurement, and verification
consistent with requirements established pursuant to Chapter 470 of
the Statutes of 2009.
(9) Utilize market analyses, pilot programs, and commercialization
strategies to support development of financial investment tools and
to best achieve the objectives of this chapter.
(10) Improve coordination among federal, state, local, and private
programs to mobilize investment in energy efficiency and efficiency
retrofits and to eliminate duplication.
(e) The commission shall develop or authorize financing mechanisms
consistent with this section that are appropriate for individual
market segments in coordination with the Energy Commission.
(f) The commission shall establish a standard for what constitutes
cost-effective energy efficiency retrofits to ensure that the
benefits of energy efficiency retrofits exceed their cost.
(g) The commission shall ensure that ratepayer investments in
cost-effective energy efficiency retrofits are accountable and
transparent by doing each of the following:
(1) Making data publicly available while maintaining customer
privacy in a manner that provides sufficient information to ascertain
the total program costs and benefits, typical installed cost of
energy efficiency measures where appropriate, the amount of expected
energy savings over the life of the retrofit measure or program
compared to the incentive and other expenditures incurred, the
geographic distribution of projects where appropriate, the type of
measures deployed in each electrical corporation's service area, and
the performance of energy efficiency measures for the utility service
area individually or collectively as appropriate.
(2) Verifying energy demand reductions by region and assess
progress toward meeting energy efficiency goals, and ensuring that
consumer information is made publicly available to assist customers
in finding licensed contractors, if a licensed contractor is
required, and energy efficiency measures, and understanding the cost
and benefits of energy efficiency measures, their energy bills, and
the costs and benefits of various means of financing energy
efficiency measures.
(3) Making all contract bidding opportunities publicly available,
including contracts administered by electrical corporations or
third-party administrators, and ensuring that small businesses and
minority-, women-, and disabled veteran-owned businesses are afforded
full opportunities to participate during the contract bidding
process.
(4) Ensuring that major products of all consultant contracts of
the commission are made available in a timely manner on the
commission's Internet Web site.
(h) The commission shall, in coordination with the Energy
Commission and consistent with Chapter 470 of the Statutes of 2009,
adopt measurable goals and performance standards for each financing
mechanism. Financial assistance shall be limited to no more than the
amount deemed cost effective pursuant to this chapter.
(i) The commission shall convene a stakeholder advisory committee
no fewer than two times annually to provide technical and strategic
guidance for the development and administration of energy efficiency
financing programs developed pursuant to this section. The committee
shall include representatives of the investor-owned utilities, the
Energy Commission, commercial and residential building industry,
existing building owners and managers, labor, representatives of
energy consumer organizations including agricultural energy users,
customers, and other end users, energy efficiency investors,
technology companies, building industry, installers, local
governments, commercial real estate industry, labor, diverse
environmental groups, including environmental justice groups,
commercial building owners and managers, the office of the Treasurer,
the California Public Employees' Retirement System, and other
entities, as appropriate.
(j) The commission shall authorize funding in a manner that
provides opportunities for all customer sectors to participate,
including, but not limited to, residential single family and
multifamily, commercial and small business, agriculture and food
processing, public buildings owned by state or local governments or
special assessment and school districts, and industrial entities.
(1) In developing and expanding financial investment tools for
energy efficiency retrofits in commercial buildings, the commission
should consider the unique challenges related to energy retrofits in
commercial buildings, including length of payback, access to capital,
allocation of costs between tenants and owners, and related issues.
(2) The commission shall analyze and determine the most effective
means to increase cost-effective investment in residential energy
efficiency retrofits, including local and regional, public and
private, financing mechanisms to reduce the cost of capital and
leverage public funds to the maximum extent practicable. This
evaluation shall be used to prioritize the adoption of financial
investment tools for residential energy efficiency retrofits pursuant
to Section 399.8 and other provisions as appropriate.
(3) The commission shall evaluate and authorize financial
investment tools to finance comprehensive energy efficiency retrofits
of public buildings. This evaluation shall be used to prioritize the
adoption of financial investment tools for public building energy
efficiency retrofits pursuant to Section 399.8 and other provisions
as appropriate.
(4) The commission shall consider factors such as an administrator'
s potential for fostering innovation and market transformation,
minimizing administrative costs, and achieving scales that can
maximize participation and lower overall ratepayer costs. The
commission shall ensure that all administrators and providers are
held to the same standards of performance and accountability.
(k) The commission shall encourage local government participation
in, and administration of, public building retrofit financing
programs. For purposes of this subdivision, local governments include
local and regional energy offices, joint powers authorities, special
assessment districts, local government councils and associations,
and other local government entities. The commission shall coordinate
with the office of the Treasurer, the Energy Commission, electrical
corporations, and local governments to identify the most appropriate
and suitable local and regional government administrators.
(l) Funds collected pursuant to Section 399.8 and allocated for
energy efficiency that are subject to the requirements of this
section shall be supervised by the commission.
SEC. 14. In implementing this act, the public
goods charge collected on or before December 31, 2011, pursuant to
Section 399.8 of the Public Utilities Code to fund renewable energy
shall be expended pursuant to the provisions of law that are in
effect the day before the effective date of this act. The public
goods charge collected for this purpose on and after January 1, 2012,
shall be expended pursuant to the law in effect on and after the
effective date of this act.
SEC. 15. This act shall not become operative
unless Senate Bill 870 of the 2011-12 Regular Session of the
Legislature is enacted on or before January 1, 2012.
SEC. 16. 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. 17. 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 improve the environment, it is necessary that this act
take effect immediately. All matter omitted in this version of
the bill appears in the bill as amended in the Senate, August 30,
2011. (JR11)
