Bill Text: CA SB1237 | 2023-2024 | Regular Session | Introduced
Bill Title: Methane.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2024-04-16 - April 16 set for first hearing canceled at the request of author. [SB1237 Detail]
Download: California-2023-SB1237-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1237
| Introduced by Senator Stern |
February 15, 2024 |
An act to amend Sections 7196.2, 12240, 13400, 13404, 13440, 13442, 13470, and 13531 of the Business and Professions Code, to amend Sections 798.41, 1785.11.9, 1798.98, and 2929.5 of the Civil Code, to amend Sections 349.05, 564, 726.5, and 736 of the Code of Civil Procedure, to amend Section 17213 of the Education Code, to amend Section 824 of the Evidence Code, to amend Sections 819, 7274, and 32202 of the Financial Code, to amend Section 6602 of the Fish and Game Code, to amend Sections 4216, 4216.3, 4217.11, 6546, 7267.9, 7513.7, 7922.700, 8585.01, 8670.3, 8670.56.5, 11342.610, 16428.1, 16428.15, 16428.2, 51010.5, 53313.5, 54957, 61105, 63010, 65912.113, 65912.123, 65913.16, 65950.5, 65963.2, and 70357 of the Government Code, to amend Section 294 of the Harbors and Navigation Code, to amend Sections 18029.1, 19881, 25144, 25299.97, 25421, 38501, 38562, 38594, 39607, 39731, 39733, 40448.5, 40516, 40603, 41062, 41081, 41704,
42301.15, 42710, 43867, 44229, and 78075 of the Health and Safety Code, to amend Sections 7655 and 7800 of the Labor Code, to amend Sections 2202, 2202.5, 10295.3, 10295.35, 10295.5, and 10299.1 of the Public Contract Code, to amend Sections 2005, 3008, 3015, 3180, 3181, 3186.3, 3205.8, 3227.6, 3300, 3316.2, 3500, 3501, 3503, 3635.3, 6245, 6827.5, 21080.25, 21080.40, 21151.8, 25000.1, 25000.5, 25121, 25122, 25125, 25126, 25134, 25140, 25228, 25300, 25301, 25303, 25303.5, 25310, 25320, 25354, 25355, 25401.2, 25401.5, 25402.10, 25412.5, 25540.6, 25550, 25555, 25620.1, 25620.8, 25704, 25722.5, 25722.8, 25722.9, 25794.6, 25943, 25990, 26401, 30001.2, 30107, 30715, and 42891 of the Public Resources Code, to amend Sections 216, 216.6, 328.1, 328.2, 353.1, 366.1, 368, 379.5, 379.6, 390, 391, 398.4, 399.12, 454.56, 454.7, 701.1, 739.4, 740.3, 740.8, 747, 783.5, 784.2, 785.2, 890, 891, 892, 892.2, 896, 950, 955, 958, 963, 972, 975, 1002.5, 1821, 2104.7, 2775.7, 2801, 2802, 2804, 2806, 2811, 2812, 2836.7, 2840.6,
2841, 2851, 3252, 3255, 3310, 3325, 3365, 3369, 4351, 4358, 6350, 6351, 6352, 7673, 7714.5, 8340, 8341, 8371, 8372, 8380, 9616, 9618, and 99500 of the Public Utilities Code, to amend Sections 6358.1, 7284.3, 7326, 7335, 8613, 8651.6, 8651.7, 9258, 9501, 17131.10, 18154, 25128, 60004, and 60022 of the Revenue and Taxation Code, to amend Section 2580 of the Streets and Highways Code, to amend Sections 2402.6, 27602, and 27909 of the Vehicle Code, and to amend Section 24252.1 of the Water Code, relating to methane, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1237, as introduced, Stern.
Methane.
Existing law regulates natural gas in various contexts, including for purposes of manufacturing, transportation, energy generation, utility service, and storage, and establishes various programs, funds, and charges related to natural gas, including the Natural Gas Services Program and the natural gas surcharge. Existing law defines “natural gas,” for specified purposes, as all gas produced in this state, natural or manufactured, except propane, for light, heat, or electricity.
Existing law requires the Director of General Services to operate the Natural Gas Services Program to consolidate and address the needs of multiple state agencies for the procurement of natural gas and related services. Existing law creates the Department of General Services Natural Gas Services Program Account, which is continuously appropriated to the department for
purposes of operating that program.
Existing law requires the Public Utilities Commission to impose a surcharge on all natural gas consumed in this state to fund low-income assistance programs, cost-effective energy efficiency and conservation activities, and public interest research and development that are not adequately provided by the competitive and regulated markets. Existing law establishes the Gas Consumption Surcharge Fund, which is continuously appropriated to that commission for specified purposes, as prescribed.
This bill would generally replace the term “natural gas” with the term “methane” throughout all of the state’s codes. Because some natural gas is not methane and some methane is not natural gas, the bill would authorize the expenditure of continuously appropriated moneys for new purposes, thereby making an appropriation, and would also change the applicability of various charges, and the purposes for
which revenues from those charges may be used.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime.
Because certain of the above provisions would be part of the act and a violation of a Public Utilities Commission action implementing this bill’s requirements would be a crime, and to the extent this bill would mandate that a local entity provide a new program or higher level of service, the bill would impose a state-mandated local program.
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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7196.2 of the Business and Professions Code is amended to read:7196.2.
(a) If a home inspector observes any shade of yellow corrugated stainless steel tubing during a home inspection, the home inspector shall include that observation, and the following notification, in the home inspection report:“Manufacturers of yellow corrugated stainless steel tubing believe that yellow corrugated stainless steel tubing is safer if properly bonded and grounded as required by the manufacturer’s installation instructions. Proper bonding and grounding of this product can only be determined by a licensed electrical contractor.”
(b) For purposes of this section, “corrugated stainless steel tubing” means a flexible, stainless
steel pipe used to supply natural gas
methane and propane in residential, commercial, and industrial structures.
(c) The degree of care specified in Section 7196 shall be used in determining whether a home inspector has complied with the requirements of subdivision (a).
SEC. 2.
Section 12240 of the Business and Professions Code is amended to read:12240.
(a) Except as otherwise provided in this section, the county board of supervisors, by ordinance, may charge an annual registration fee, not to exceed the county’s total cost of actually inspecting or testing the devices as required by law, to recover the costs of inspecting or testing weighing and measuring devices required of the county sealer pursuant to Section 12210, and to recover the cost of carrying out Section 12211.(b) Except as otherwise provided in this section, the annual registration fee shall not exceed the amount set forth in subdivisions (f) to (r), inclusive.
(c) The county may collect the fees biennially, in which case they shall not exceed twice the amount of an annual registration
fee. The ordinance shall be adopted pursuant to Article 7 (commencing with Section 25120) of Chapter 1 of Part 2 of Division 2 of Title 3 of the Government Code.
(d) Retail gasoline pump meters, for which the above fees are assessed, shall be inspected as frequently as required by regulation, but not less than once every two years.
(e) Livestock scales, animal scales, and scales used primarily for weighing feed and seed, for which the above fees are assessed, shall be inspected as frequently as required by regulation.
(f) For purposes of this section, the annual registration fee for a business that uses a commercial weighing or measuring device or devices shall consist of a business location fee, a department administrative fee, as specified in Section 12241, and a device fee, as specified in subdivisions (g) to (r),
inclusive. The business location fee and device fee shall not exceed one hundred twenty dollars ($120) per business location, plus 100 percent of the maximum applicable device fee listed in subdivisions (g) to (r), inclusive.
(g) (1) For marinas, mobilehome parks, recreational vehicle parks, and apartment complexes, where the owner of the marina, park, or complex owns and is responsible for the utility meters, the device fee shall not exceed the following:
(A) For water submeters, six dollars ($6) per device per space or apartment.
(B) For electric submeters, three dollars ($3) per device per space or apartment.
(C) For vapor submeters, ten dollars ($10) per device per space or apartment.
(2) Marinas, mobilehome parks, recreational vehicle parks, and apartment complexes for which the above fees are assessed shall be inspected and tested as frequently as required by regulation.
(h) For weighing devices, other than livestock, with capacities of 10,000 pounds or greater, the device fee shall not exceed two hundred fifty dollars ($250) per device; for weighing devices, other than livestock scales, with capacities of at least 2,000 pounds but less than 10,000 pounds, the device fee shall not exceed one hundred fifty dollars ($150) per device.
(i) This section does not apply to farm milk tanks.
(j) A scale or device used in a certified farmers’ market, as defined by Section 113742 of the Health and Safety Code, is not required to be registered in
the county where the market is conducted, if the scale or device has an unexpired seal for the current year, issued by a licensed California county sealer.
(k) For livestock scales with capacities of 10,000 pounds or greater, the device fee shall not exceed one hundred fifty dollars ($150) per device; for livestock scales with capacities of at least 2,000 pounds but less than 10,000 pounds, the device fee shall not exceed one hundred dollars ($100) per device.
(l) (1) For liquefied petroleum gas (LPG) meters, truck mounted or stationary, the device fee shall not exceed one hundred eighty-five dollars ($185) per device.
(2) For compressed natural gas (CNG)
methane and liquified natural gas (LNG) methane meters, truck mounted or stationary, the device fee shall not exceed seventy-five dollars ($75) per device in 2019, one hundred twenty-five dollars ($125) per device in 2020, and one hundred eighty-five dollars ($185) per device beginning in 2021.
(m) For wholesale and vehicle meters, the device fee shall not exceed seventy-five dollars ($75) per device.
(n) For computing scales and electronic counter scales interfaced with a cash register or any point-of-sale system, the device fee shall not exceed twenty-five dollars ($25) per device. For purposes of this subdivision, a computing scale or interfaced
electronic counter scale shall be a weighing device with a capacity of less than 100 pounds that indicates, through its indicator or a point-of-sale system indicator, the money value of any commodity weighed, at predetermined unit prices, throughout all or part of the weighing range of the scale. For purposes of this subdivision, the portion of the annual registration fee consisting of the business location fee and the device fees authorized by this subdivision shall not exceed the sum of one thousand two hundred dollars ($1,200) for each business location.
(o) For jewelry and prescription scales and scales marked as, or meeting the design and performance requirements of, a Class II weighing device, the device fee shall not exceed eighty dollars ($80) per device. For purposes of this subdivision, a jewelry or prescription scale or a scale marked as, or meeting the design and performance requirements of, a Class II weighing device shall be a
scale that meets the specifications, tolerances, and sensitivity requirements established or adopted by the secretary applicable to those devices in accordance with Section 12107.
(p) For weighing devices, other than computing, interfaced electronic counter, jewelry, and prescription scales and scales marked as, or meeting the design and performance requirements of, a Class II weighing device, as defined in subdivisions (n) and (o), with capacities of at least 100 pounds but less than 2,000 pounds, the device fee shall not exceed fifty dollars ($50) per device.
(q) For vehicle odometers utilized used to charge mileage usage fees in vehicle rental transactions or in computing other charges for
service, including, but not limited to, ambulance, towing, or limousine services, the device fee shall not exceed sixty dollars ($60) per device.
(r) This section does not apply to odometers in rental passenger vehicles, as defined in Section 465 of the Vehicle Code, that are subject to Chapter 1.5 (commencing with Section 1939.01) of Title 5 of Part 4 of Division 3 of the Civil Code. If a person files a complaint with the county sealer regarding the accuracy of a rental passenger vehicle odometer, the county sealer may charge a fee to the operator of the vehicle rental business sufficient to recover, but not to exceed, the reasonable cost of testing the device in investigation of the complaint.
(s) For vehicle odometers utilized
used
to charge mileage usage fees in vehicle rental transactions involving nonpassenger vehicles that are not subject to Chapter 1.5 (commencing with Section 1939.01) of Title 5 of Part 4 of Division 3 of the Civil Code, the portion of the annual registration fee consisting of the business location fee and the device fee authorized pursuant to subdivision (q) shall not exceed the sum of three hundred forty dollars ($340) for each business location.
(t) For all other commercial weighing or measuring devices not listed in subdivisions (g) to (r), inclusive, the device fee shall not exceed twenty-six dollars ($26) per device. For purposes of this subdivision, the total portion of the annual registration fee consisting of the business location fee and the device fees authorized by this subdivision shall not exceed the sum of one thousand two hundred dollars ($1,200), for each business location.
(u) For purposes of this section, a single business location is defined as:
(1) Each business location that uses one or more categories or types of commercial devices as set forth in subdivisions (g) to (p), inclusive, and in subdivision (t), that require the use of specialized testing equipment and that necessitates not more than one inspection trip by a weights and measures official.
(2) Each vehicle, except for those vehicles that are employed in vehicle rental transactions, in which one or more commercial devices is installed and used.
(3) (A) For vehicles that are employed in vehicle rental transactions and that are not subject to Chapter 1.5 (commencing with Section 1939.01) of Title 5 of Part 4 of Division 3 of the Civil Code,
each business location at which vehicles are stored or maintained by a vehicle rental company for the purposes of renting vehicles to customers.
(B) A facility that meets all of the following criteria shall not be considered a business location for the purposes of this paragraph:
(i) The facility is not wholly, or in any part, owned, leased, or operated by the vehicle rental company.
(ii) The facility is not operated or staffed by an employee of the vehicle rental company.
(iii) The facility stores or maintains, on a temporary basis, vehicles at the location for customer convenience.
(C) If a person files a complaint with the county sealer regarding the accuracy of an odometer in a vehicle
found or located at a facility described in subparagraph (B), the county sealer may charge a fee to the operator of the vehicle rental company sufficient to recover, but not to exceed, the reasonable cost of testing the device in investigation of the complaint.
SEC. 3.
Section 13400 of the Business and Professions Code is amended to read:13400.
For purposes of this chapter, the following terms mean the following:(a) “Advertising medium” includes banner, sign, placard, poster, streamer, and card.
(b) “Alternative fuels” means:
(1) “Biodiesel,” a fuel comprised of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the ASTM International Standard Specification D6751 “Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels.”
(2) “Biodiesel blend,” a fuel comprised of biodiesel mixed with diesel fuel that meets the requirements of ASTM International
Standard Specification D7467.
(3) “Dimethyl ether,” an organic compound meant for combustion in compression-ignition engines that meets the requirements of dimethyl ether prescribed in this chapter.
(4) “Dimethyl ether-propane fuel blend,” a motor vehicle fuel consisting primarily of liquefied petroleum gas meeting the requirements of ASTM International Standard Specification D1835 mixed with dimethyl ether meeting the requirements of ASTM International Standard Specification D7901.
(5) “Electricity,” electrical energy transferred to or stored onboard an electric vehicle primarily for the purpose of propulsion.
(6) “Ethanol,” denatured motor fuel ethanol meeting the requirements of ASTM International Standard Specification D4806.
(7) “Ethanol fuel blend,” a motor vehicle fuel consisting primarily of ethanol mixed with gasoline meeting the standards prescribed for ethanol fuel blends by this chapter.
(8) “Hydrogen,” a fuel consisting of high purity hydrogen intended for consumption in a motor vehicle with an internal combustion engine or fuel cell that meets the standards for hydrogen prescribed by this chapter.
(9) “Methanol fuel blend,” a motor vehicle fuel consisting primarily of methanol mixed with gasoline meeting the standards prescribed by this chapter.
(10) “Natural “Methane gas,”
which was formerly referred to for purposes of this chapter as natural gas, a gaseous mixture of hydrocarbon compounds consisting of primarily methane in the form of a compressed gas or a cryogenic liquid intended for use as a motor vehicle fuel.
(11) “Propane,” a liquefied petroleum gas intended for use as a motor vehicle fuel and meeting the standards prescribed by this chapter.
(12) Any other fuel intended for use as a motor vehicle fuel that the secretary determines is an alternative fuel that has a standard specification from a standards development organization accredited by the American National Standards Institute (ANSI), or an interim standard specification pursuant to Section 13446.
(c) “Automotive spark-ignition engine fuel” means a product used for the generation of power in a spark-ignition internal combustion engine.
(d) “Compression-ignition engine fuel” means a product used for the generation of power in a compression-ignition internal combustion engine.
(e) “Developmental engine fuel” means an engine fuel that does not meet standards established by this chapter but has characteristics that may lead to an improved fuel standard or the development of an alternative fuel standard.
(f) “Diesel fuel” means any hydrocarbon oil meant for combustion in compression-ignition engines offered for sale that meets the standards for diesel fuel prescribed by this chapter.
(g) “Engine fuel” means any gasoline, diesel, or
alternative fuel used for the generation of power in an internal combustion engine or fuel cell in a motor vehicle, or electrical power electricity delivered conductively or inductively to an electric motor in electric or plug-in hybrid vehicles. “Motor vehicle fuel” means “engine fuel” when that term is used in this chapter.
(h) “Fuel oil” means any product offered for sale that is burned in a furnace or boiler for the generation of heat and meets the standards prescribed for fuel oil by this chapter.
(i) “Gasoline” means a volatile mixture of liquid hydrocarbons, generally containing small amounts of additives, suitable for use as a fuel in a spark-ignition internal combustion engine.
(j) “Gasoline-oxygenate blend” means a fuel consisting primarily of gasoline along with a substantial amount of one or more oxygenates that meets ASTM International Standard D4814.
(k) “Kerosene” means a fuel offered for sale that meets the standards for kerosene prescribed in this chapter.
(l) “Lubricant” means a lubricating oil or other substance that reduces friction and wear between moving parts within an engine and other motor vehicle components.
(m) “Lubricating oil” means motor oil, engine lubricant, engine oil, lubricating axle oil, gear oil, or manual transmission fluid.
(n) “Manufacturer” means manufacturer, refiner, producer, or importer.
(o) “Motor oil” means an oil that reduces friction and wear between the moving parts within an internal combustion engine and also serves as a coolant. For purposes of this chapter, motor oil also means engine oil.
(p) “Motor vehicle fuel” means an engine fuel intended for consumption in, including, but not limited to, an internal combustion engine, fuel cell, or electric motor to produce power to self-propel a vehicle designed for transporting persons or property on a public street or highway.
(q) “Octane number” or “antiknock index number,” when used in this chapter, means that number assigned to a spark-ignition engine fuel that designates the antiknock quality. The “octane number” or “antiknock index number” shall be determined according to the ASTM International method or methods designated in the latest ASTM
International Standard Specification D4814.
(r) “Oxygenate” means an oxygen-containing ashless organic compound, such as an alcohol or ether, that can be used as a fuel or fuel supplement.
(s) “Renewable diesel fuel” means a diesel fuel derived from nonpetroleum renewable resources. Renewable diesel fuel does not include biodiesel, as defined in paragraph (1) of subdivision (b).
(t) “Sell” or any of its variants means attempt to sell, offer for sale or assist in the sale of, permit to be sold or offered for sale or delivery, offer for delivery, trade, barter, or expose for sale.
(u) “Standard test” means a test conducted in accordance with the latest published standard adopted by ASTM International.
SEC. 4.
Section 13404 of the Business and Professions Code is amended to read:13404.
(a) The sale of compressed(b) Compressed natural gas
methane sold at retail to the public for use as a motor vehicle fuel shall be sold in a gasoline gallon equivalent that shall be equal to 126.67 cubic feet, or 5.66 pounds, of compressed natural gas, methane measured at the standard pressure and temperature, described in Section 8615 of the Revenue and Taxation Code.
(c) Liquefied natural gas methane sold at retail to the public for use as a motor vehicle fuel shall be sold in a diesel gallon equivalent that shall be equal to 6.06 pounds of liquefied natural gas.
methane.
SEC. 5.
Section 13440 of the Business and Professions Code is amended to read:13440.
(a) The department shall establish specifications for automotive spark-ignition engine fuels. The department shall adopt by reference the latest standards established by a recognized consensus organization or standards writing organization such as ASTM International or SAE International, for automotive spark-ignition engine fuel, except that no specification shall be less stringent than required by any California state law.(b) Any gasoline-oxygenate blend containing methanol shall also contain an alcohol cosolvent (butanol or higher molecular weight alcohol) in an amount equal to or greater than the volume percentage of methanol except those blends previously granted a waiver by the United States Environmental Protection Agency.
(c) The antiknock index as defined in Section 13400 for gasoline, gasoline oxygenated blends, and dimethyl ether-propane fuel blends shall not be less than 87.
(d) Gasoline and gasoline-oxygenate blends shall meet the latest specifications set forth in ASTM International Standard Specification D4814.
(e) Notwithstanding any other provision of this section, gasoline sold for use in Inyo or Mono County, or the portion of Kern County lying east of the Los Angeles County Aqueduct, shall comply with the latest specification set forth in ASTM International Standard Specification D4814 relating to volatility class standards for the season during which the gasoline is sold for either the interior region or the southeast region of California.
(f) Ethanol fuel
blends shall meet the latest specifications set forth in ASTM International Standard Specification D5798.
(g) Methanol fuel blends shall meet the latest specifications set forth in ASTM International Standard Specification D5797.
(h) Liquefied petroleum gas for use as a motor vehicle fuel shall meet the latest specifications set forth in ASTM International Standard Specification D1835.
(i) Dimethyl ether-propane fuel blends for use as motor vehicle fuel shall meet the latest specifications set forth by the ASTM International. If no ASTM International specifications exist, the secretary shall establish interim specifications by regulation.
(j) Natural gas Methane
for use as a motor vehicle fuel shall meet the latest specification set forth by the ASTM International or SAE International.
SEC. 6.
Section 13442 of the Business and Professions Code is amended to read:13442.
(a) It is unlawful for any person to sell, offer for sale, or cause or permit to be sold or offered for sale, or deliver or offer for delivery, any product used as a motor vehicle fuel for internal combustion engines at any place where motor vehicle fuels are kept or stored for sale,(b) The provisions of this This article, as to the words “not gasoline,” shall
does not apply to signs or labels used in connection with the sale or delivery of kerosene, jet or turbine fuel, diesel fuel, liquefied petroleum gas, natural gas, methane or motor fuel comprised of a mixture of gasoline and lubricating oil properly labeled in accordance with the provisions of Article 9 (commencing with Section 13480).
(c) This section does not apply to electricity sold as a motor vehicle fuel.
SEC. 7.
Section 13470 of the Business and Professions Code is amended to read:13470.
(a) A person shall not sell at retail to the general public, any motor vehicle fuel from any place of business in this state unless there is displayed on the dispensing apparatus in a conspicuous place at least one sign or price indicator showing the total price per gallon, liter, or other unit of measurement adopted pursuant to Section 12107, 13404, or 13404.5 of all motor vehicle fuel sold therefrom. The total price per gallon, liter, or other unit of measurement shall include applicable fuel taxes and all sales taxes.(b) (1) A person shall not sell at retail to the general public, any compressed natural gas
methane for use as a motor vehicle fuel from any place of business in this state unless there is displayed and labeled on the dispensing apparatus in a conspicuous place “Gasoline gallon equivalent.”
(2) A person shall not sell at retail to the general public, any liquefied natural gas methane for use as a motor vehicle fuel from any place of business in this state unless there is displayed and labeled on the dispensing apparatus in a conspicuous place “Diesel gallon equivalent.”
(c) When a discount is offered from a dispenser computing only at a higher price, at least one sign or label shall be conspicuously displayed on the dispenser indicating that
the dispenser is computing at the higher price and indicating the amount of the discount per unit of measurement in letters and numerals not less than one-half inch high.
(d) If motor vehicle fuel is sold by unit of measurement other than gallon, that unit shall be conspicuously displayed on the side of the dispensing apparatus from which service can be made.
SEC. 8.
Section 13531 of the Business and Professions Code is amended to read:13531.
(a) (1) Every person offering for sale or selling any motor vehicle fuel to the public from any place of business shall display on the premises an advertising medium that complies with the requirements of this article and that advertises the total prices of the three major grades of motor vehicle fuel offered for sale.(2) The advertising medium shall be clearly visible from the street or highway adjacent to the premises. When the place of business is situated at an intersection, the advertising medium shall be clearly visible from each street of the intersection.
(3) For purposes of this subdivision, motor vehicle fuel does not include propane or dimethyl ether-propane fuel
blend.
(4) For purposes of this subdivision, electricity and natural gas methane sold as a motor vehicle fuel shall meet only the requirements adopted pursuant to Sections 13404 and 13404.5.
(b) The governing body of any city, county, or city and county may, by ordinance, exempt specified geographic areas from the provisions of this section if, pursuant to Article 5 (commencing with Section 65300) of Chapter 3 of Division 1 of Title 7 of the Government Code, the areas are designated on the local general plan as scenic corridors or historic preservation areas.
(c) (1) Except as provided in paragraph (2), any person who violates the provisions of subdivision (a) is guilty of an infraction and, upon conviction, is punishable by a fine not to exceed five hundred dollars ($500).
(2) Any person who violates the provisions of subdivision (a) and who has been previously convicted two or more times of a violation of subdivision (a) is guilty of a misdemeanor and, upon conviction, is punishable by imprisonment in the county jail not exceeding six months, by a fine not exceeding one thousand dollars ($1,000), or by both.
(d) Notwithstanding Section 13590, the district attorney of each county, or pursuant to Section 41803.5 of the Government Code,
the city attorney of any general law city or chartered city within each county, or the county sealer, shall, upon complaint or upon their own motion, enforce the provisions of this section and, in addition, may bring an action for injunctive relief in accordance with Section 13611.
SEC. 9.
Section 798.41 of the Civil Code is amended to read:798.41.
(a) (1) Where a rental agreement, including a rental agreement specified in Section 798.17, does not specifically provide otherwise, the park management may elect to bill a homeowner separately for utility service fees and charges assessed by the utility for services provided to or for spaces in the park. Any separately billed utility fees and charges shall not be deemed to be included in the rent charged for those spaces under the rental agreement, and shall not be deemed to be rent or a rent increase for purposes of any ordinance, rule, regulation, or initiative measure adopted or enforced by any local governmental entity Utility
(2) Utility services to which this section applies are natural gas methane or liquid propane gas, electricity, water, cable television, garbage or refuse service, and sewer service.
(b) This section does not apply to rental agreements entered into prior to before
January 1, 1991, until extended or renewed on or after that date.
(c) Nothing in this section shall This section does not require rental agreements to provide for separate billing to homeowners of fees and charges specified in subdivision (a).
(d) Those fees and charges specified in subdivision (a) shall be separately stated on any monthly or other periodic billing to the homeowner. If the fee or charge has a limited duration or is amortized for a specified period, the expiration date shall be stated on the initial notice and each subsequent billing to the homeowner while the fee or charge is billed to the homeowner.
SEC. 10.
Section 1785.11.9 of the Civil Code is amended to read:1785.11.9.
For purposes of Sections 1785.11.10 and 1785.11.11, the following terms shall have the following meanings:(a) “Protected consumer” means an individual who is any of the following:
(1) Under 16 years of age at the time a request for the placement of a security freeze is made.
(2) An incapacitated person or a protected person for whom a guardian or conservator has been appointed.
(3) Under the jurisdiction of a county welfare department or county probation department, has been placed in a foster care setting, and is under 16 years of age at the time a request for placement of a security freeze
is made.
(b) “Record” means a compilation of information that:
(1) Identifies a protected consumer.
(2) Was created by a consumer credit reporting agency solely for the purpose of complying with this section.
(3) Is not otherwise authorized to be created or used to consider the protected consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.
(c) (1) “Representative” means a person who provides to a consumer credit reporting agency sufficient proof of authority to act on behalf of a protected consumer.
(2) For a protected
consumer who has been placed in a foster care setting, “representative” means either of the following:
(A) A county welfare department or its agent or designee.
(B) A county probation department or its agent or designee.
(3) For a protected consumer who has been placed in a foster care setting, “representative” does not mean a foster parent.
(d) “Security freeze” means:
(1) If a consumer credit reporting agency does not have a file pertaining to a protected consumer, a restriction that:
(A) Is placed on the protected consumer’s record in accordance with this section.
(B) Prohibits the consumer credit reporting agency from releasing the protected consumer’s record except as authorized in this section.
(2) If a consumer credit reporting agency has a file pertaining to a protected consumer, a restriction that:
(A) Is placed on the protected consumer’s consumer credit report in accordance with this section.
(B) Prohibits the consumer credit reporting agency from releasing the protected consumer’s consumer credit report or any information derived from the protected consumer’s consumer credit report except as authorized in this section.
(e) “Sufficient proof of authority” means documentation that shows that a representative has authority to act on behalf of a protected consumer in a financial matter. This
documentation includes, but is not limited to:
(1) A court order or relevant enabling document issued by a court.
(2) A legally sufficient and valid power of attorney, or a durable power of attorney.
(3) A written, notarized statement signed by a representative that expressly describes the authority of the representative to act on behalf of a protected consumer, including a temporary conservator or temporary guardian.
(4) A written communication from a county welfare department or its agent or designee or a county probation department or its agent or designee certifying that the protected consumer is a foster youth under its jurisdiction.
(f) “Sufficient proof of identification” means
information or documentation that identifies a protected consumer or a representative of a protected consumer. This information or documentation includes, but is not limited to:
(1) A social security number or a copy of a social security card issued by the Social Security Administration.
(2) A certified copy or official copy of a birth certificate issued by the entity authorized to issue the birth certificate.
(3) A copy of a driver’s license, an identification issued by the Department of Motor Vehicles, or any other government-issued identification.
(4) A copy of a bill for telephone, sewer, septic tank, water, electric,
electrical, oil, or natural gas
methane services that shows a name and a home address.
(5) A written communication from a county welfare department or its agent or designee or a county probation department or its agent or designee certifying that the protected consumer is a foster youth under its jurisdiction.
SEC. 11.
Section 1798.98 of the Civil Code is amended to read:1798.98.
(a) For the purposes of this title, the following definitions shall apply:(1) “Business” means a sole proprietorship, partnership, corporation, association, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the law of this state, any other state, the United States, or of any other country, or the parent or the subsidiary of a financial institution.
(2) “Customer” means a customer of an electrical or gas corporation or a local publicly owned electric utility that permits a business to have access to data in association with purchasing or leasing a
product or obtaining a service from the business.
(3) “Data” means a customer’s electrical or natural gas methane usage that is made available to the business as part of an advanced metering infrastructure provided by an electrical corporation, a gas corporation, or a local publicly owned electric utility, and includes the name, account number, or physical address of the customer.
(4) “Electrical corporation” has the same meaning as in Section 218 of the Public Utilities Code.
(5) “Gas corporation” has the same meaning as in Section 222 of the Public Utilities Code.
(6) “Local publicly owned electric utility” has the same meaning as in Section 224.3 of the Public Utilities Code.
(b) Unless otherwise required or authorized by federal or state law, a business shall not share, disclose, or otherwise make accessible to any third party a customer’s data without obtaining the express consent of the customer and conspicuously disclosing to whom the disclosure will be made and how the data will be used.
(c) A business that discloses data, with the express consent of the customer, pursuant to a contract with a nonaffiliated third party, shall require by contract that the third party implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the data from unauthorized access, destruction, use, modification, or disclosure.
(d) A business shall implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect the data from unauthorized access, destruction, use, modification, or disclosure.
(e) A business shall not provide an incentive or discount to the customer for accessing the data without the prior consent of the customer.
(f) A business shall take all reasonable steps to dispose, or arrange for the disposal, of customer data within its custody or control when the records are no longer to be retained by the business by (1) shredding, (2) erasing, or (3) otherwise modifying the data in those records to make it unreadable or undecipherable through any means.
(g) The provisions of this This
section do does not apply to an electrical corporation, a gas corporation, or a local publicly owned electric utility or a business that secures the data as a result of a contract with an electrical or gas corporation or a local publicly owned electric utility under the provisions of subdivision (f) of Section 8380 or subdivision (f) of 8381 of the Public Utilities Code.
SEC. 12.
Section 2929.5 of the Civil Code is amended to read:2929.5.
(a) A secured lender may enter and inspect the real property security for the purpose of determining the existence, location, nature, and magnitude of any past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security on either of the following:(1) Upon reasonable belief of the existence of a past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security not previously disclosed in writing to the secured lender in conjunction with the making, renewal, or modification of a loan, extension of credit, guaranty, or other obligation involving the borrower.
(2) After the
commencement of nonjudicial or judicial foreclosure proceedings against the real property security.
(b) The secured lender shall not abuse the right of entry and inspection or use it to harass the borrower or tenant of the property. Except in case of an emergency, when the borrower or tenant of the property has abandoned the premises, or if it is impracticable to do so, the secured lender shall give the borrower or tenant of the property reasonable notice of the secured lender’s intent to enter, and enter only during the borrower’s or tenant’s normal business hours. Twenty-four hours’ notice shall be presumed to be reasonable notice in the absence of evidence to the contrary.
(c) The secured lender shall reimburse the borrower for the cost of repair of any physical injury to the real property security caused by the entry and inspection.
(d) If a secured lender is refused the right of entry and inspection by the borrower or tenant of the property, or is otherwise unable to enter and inspect the property without a breach of the peace, the secured lender may, upon petition, obtain an order from a court of competent jurisdiction to exercise the secured lender’s rights under subdivision (a), and that action shall not constitute an action within the meaning of subdivision (a) of Section 726 of the Code of Civil Procedure.
(e) For purposes of this section:
(1) “Borrower” means the trustor under a deed of trust, or a mortgagor under a mortgage, where the deed of trust or mortgage encumbers real property security and secures the performance of the trustor or mortgagor under a loan, extension of credit, guaranty, or other obligation. The term includes any
successor-in-interest of the trustor or mortgagor to the real property security before the deed of trust or mortgage has been discharged, reconveyed, or foreclosed upon.
(2) “Hazardous substance” includes all of the following:
(A) Any “hazardous substance” as defined in subdivision (h) of Section 25281 of the Health and Safety Code.
(B) Any “waste” as defined in subdivision (d) of Section 13050 of the Water Code.
(C) Petroleum, including crude oil or any fraction thereof, natural gas, natural gas methane, methane liquids, liquefied natural gas,
methane, or synthetic gas usable for fuel, or any mixture thereof.
(3) “Real property security” means any real property and improvements, other than a separate interest and any related interest in the common area of a residential common interest development, as the terms “separate interest,” “common area,” and “common interest development” are defined in Sections 4095, 4100, and 4185, or real property consisting of one acre or less which that contains 1 to 15 dwelling units.
(4) “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, including
continuing migration, of hazardous substances into, onto, or through soil, surface water, or groundwater.
(5) “Secured lender” means the beneficiary under a deed of trust against the real property security, or the mortgagee under a mortgage against the real property security, and any successor-in-interest of the beneficiary or mortgagee to the deed of trust or mortgage.
SEC. 13.
Section 349.05 of the Code of Civil Procedure is amended to read:349.05.
(a) Within one hundred eighty days:(a)
(1) An action to enjoin, abate, or for damages on account of, an underground trespass, use or occupancy, by means of a well drilled for oil or gas or both from a surface location on land other than real property in which the aggrieved party has some right, title or interest or in respect to which the aggrieved party has some right, title or
interest.
(b)
(2) An action for conversion or for the taking or removing of oil, gas or other liquid, or fluids by means of any such well.
When
(b) When any of said acts is by means of a new well the actual drilling of which is commenced after this section becomes
effective, and such act was knowingly committed with actual intent to commit such act, the cause of action in such case shall not be deemed to have accrued until the discovery, by the aggrieved party, of the act or acts complained of; but in all other cases, and as to wells heretofore or hereafter drilled, the cause of action shall be deemed to have accrued ten days after the time when the well which that is the subject of the cause of action was first placed on production.
Notwithstanding
(c) Notwithstanding the continuing character of any such act, there shall be but one cause of action for any such act, and the cause of action shall accrue as aforesaid.
In
(d) In all cases where oil or gas has been heretofore or is hereafter extracted from any existing or subsequently drilled well in this state, by a person without right but asserting a claim of right in good faith or acting under an honest mistake of law or fact, the measure of damages, if there be any right of recovery under existing law, shall be the value of the oil or gas at the time of
extraction, without interest, after deducting all costs of development, operation and production, which costs shall include taxes and interest on all expenditures from the date thereof.
This
(e) This section applies to causes of action existing when this section becomes effective. The time for commencement of existing causes of action which
that would be barred by this section within the first one hundred eighty days after this section becomes effective, shall be the said first one hundred eighty days.
Whenever
(f) Whenever the term “oil” is used in this section it shall be taken to include “petroleum,” and the term “gas” shall mean natural gas methane coming from the earth.
The
(g) The
limitations prescribed by this section do not apply to rights of action or actions to be brought in the name of or for the benefit of the people of this State, or of any county, city and county, city or other political subdivision of this State.
SEC. 14.
Section 564 of the Code of Civil Procedure is amended to read:564.
(a) A receiver may be appointed, in the manner provided in this chapter, by the court in which an action or proceeding is pending in any case in which the court is empowered by law to appoint a receiver.(b) A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge of that court, in the following cases:
(1) In an action by a vendor to vacate a fraudulent purchase of property, or by a creditor to subject any property or fund to the creditor’s claim, or between partners or others jointly owning or interested in any property or fund, on the application of the plaintiff, or of any party whose right to or interest in the property or fund, or the proceeds of the
property or fund, is probable, and where it is shown that the property or fund is in danger of being lost, removed, or materially injured.
(2) In an action by a secured lender for the foreclosure of a deed of trust or mortgage and sale of property upon which there is a lien under a deed of trust or mortgage, where it appears that the property is in danger of being lost, removed, or materially injured, or that the condition of the deed of trust or mortgage has not been performed, and that the property is probably insufficient to discharge the deed of trust or mortgage debt.
(3) After judgment, to carry the judgment into effect.
(4) After judgment, to dispose of the property according to the judgment, or to preserve it during the pendency of an appeal, or pursuant to the Enforcement of Judgments Law (Title 9
(commencing with Section 680.010)), or after sale of real property pursuant to a decree of foreclosure, during the redemption period, to collect, expend, and disburse rents as directed by the court or otherwise provided by law.
(5) Where a corporation has been dissolved, as provided in Section 565.
(6) Where a corporation is insolvent, or in imminent danger of insolvency, or has forfeited its corporate rights.
(7) In an action of unlawful detainer.
(8) At the request of the Public Utilities Commission pursuant to Section 1825 or 1826 of the Public Utilities Code.
(9) In all other cases where necessary to preserve the property or rights of any party.
(10) At the request of the Office of Statewide Health Planning and Development, or the Attorney General, pursuant to Section 129173 of the Health and Safety Code.
(11) In an action by a secured lender for specific performance of an assignment of rents provision in a deed of trust, mortgage, or separate assignment document. The appointment may be continued after entry of a judgment for specific performance if appropriate to protect, operate, or maintain real property encumbered by a deed of trust or mortgage or to collect rents therefrom while a pending nonjudicial foreclosure under power of sale in a deed of trust or mortgage is being completed.
(12) In a case brought by an assignee under an assignment of leases, rents, issues, or profits pursuant to subdivision (g) of Section 2938 of the Civil Code.
(c) A receiver may be appointed, in the manner provided in this chapter, including, but not limited to, Section 566, by the superior court in an action brought by a secured lender to enforce the rights provided in Section 2929.5 of the Civil Code, to enable the secured lender to enter and inspect the real property security for the purpose of determining the existence, location, nature, and magnitude of any past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security. The secured lender shall not abuse the right of entry and inspection or use it to harass the borrower or tenant of the property. Except in case of an emergency, when the borrower or tenant of the property has abandoned the premises, or if it is impracticable to do so, the secured lender shall give the borrower or tenant of the property reasonable notice of the secured lender’s intent to enter and shall enter only
during the borrower’s or tenant’s normal business hours. Twenty-four hours’ notice shall be presumed to be reasonable notice in the absence of evidence to the contrary.
(d) Any action by a secured lender to appoint a receiver pursuant to this section shall not constitute an action within the meaning of subdivision (a) of Section 726.
(e) For purposes of this section:
(1) “Borrower” means the trustor under a deed of trust, or a mortgagor under a mortgage, where the deed of trust or mortgage encumbers real property security and secures the performance of the trustor or mortgagor under a loan, extension of credit, guaranty, or other obligation. The term includes any successor in interest of the trustor or mortgagor to the real property security before the deed of trust or mortgage has been discharged, reconveyed, or
foreclosed upon.
(2) “Hazardous substance” means any of the following:
(A) Any “hazardous substance” as defined in subdivision (h) of Section 25281 of the Health and Safety Code.
(B) Any “waste” as defined in subdivision (d) of Section 13050 of the Water Code.
(C) Petroleum including crude oil or any fraction thereof, natural gas, natural gas methane, methane liquids, liquefied natural gas, methane,
or synthetic gas usable for fuel, or any mixture thereof.
(3) “Real property security” means any real property and improvements, other than a separate interest and any related interest in the common area of a residential common interest development, as the terms “separate interest,” “common area,” and “common interest development” are defined in Sections 4095, 4100, and 4185 of the Civil Code, or real property consisting of one acre or less that contains 1 to 15 dwelling units.
(4) “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, including continuing migration, of hazardous substances into, onto, or through soil, surface water, or groundwater.
(5) “Secured lender” means the beneficiary
under a deed of trust against the real property security, or the mortgagee under a mortgage against the real property security, and any successor in interest of the beneficiary or mortgagee to the deed of trust or mortgage.
SEC. 15.
Section 726.5 of the Code of Civil Procedure is amended to read:726.5.
(a) Notwithstanding subdivision (a) of Section 726 or any other provision of law, except subdivision (d) of this section, a secured lender may elect between the following where the real property security is environmentally impaired and the borrower’s obligations to the secured lender are in default:(1) (A) Waiver of its lien against (i) any parcel of real property security that is environmentally impaired or is an affected parcel, and (ii) all or any portion of the fixtures and personal property attached to the parcels; and
(B) Exercise of (i) the rights and remedies of an unsecured creditor, including reduction of its claim against the borrower to judgment, and (ii) any other
rights and remedies permitted by law.
(2) Exercise of (i) the rights and remedies of a creditor secured by a deed of trust or mortgage and, if applicable, a lien against fixtures or personal property attached to the real property security, and (ii) any other rights and remedies permitted by law.
(b) Before the secured lender may waive its lien against any parcel of real property security pursuant to paragraph (1) of subdivision (a) on the basis of the environmental impairment contemplated by paragraph (3) of subdivision (e), (i) the secured lender shall provide written notice of the default to the borrower, and (ii) the value of the subject real property security shall be established and its environmentally impaired status shall be confirmed by an order of a court of competent jurisdiction in an action brought by the secured lender against the borrower. The complaint for a
valuation and confirmation action may include causes of action for a money judgment for all or part of the secured obligation, in which case the waiver of the secured lender’s liens under paragraph (1) of subdivision (a) shall result only if and when a final money judgment is obtained against the borrower.
(c) If a secured lender elects the rights and remedies permitted by paragraph (1) of subdivision (a) and the borrower’s obligations are also secured by other real property security, fixtures, or personal property, the secured lender shall first foreclose against the additional collateral to the extent required by applicable law in which case the amount of the judgment of the secured lender pursuant to paragraph (1) of subdivision (a) shall be limited to the extent Section 580a or 580d, or subdivision (b) of Section 726 apply to the foreclosures of additional real property security. The borrower may waive or modify the foreclosure requirements
of this subdivision provided that the waiver or modification is in writing and signed by the borrower after default.
(d) Subdivision (a) shall be inapplicable if all of the following are true:
(1) The release or threatened release was not knowingly or negligently caused or contributed to, or knowingly or willfully permitted or acquiesced to, by any of the following:
(A) The borrower or any related party.
(B) Any affiliate or agent of the borrower or any related party.
(2) In conjunction with the making, renewal, or modification of the loan, extension of credit, guaranty, or other obligation secured by the real property security, neither the borrower, any related party, nor any affiliate or
agent of either the borrower or any related party had actual knowledge or notice of the release or threatened release, or if a person had knowledge or notice of the release or threatened release, the borrower made written disclosure thereof to the secured lender after the secured lender’s written request for information concerning the environmental condition of the real property security, or the secured lender otherwise obtained actual knowledge thereof, prior to before the making, renewal, or modification of the obligation.
(e) For purposes of this section:
(1) “Affected parcel” means any portion of a parcel of real property security that is (A) contiguous to the environmentally impaired
parcel, even if separated by roads, streets, utility easements, or railroad rights-of-way, (B) part of an approved or proposed subdivision within the meaning of Section 66424 of the Government Code, of which the environmentally impaired parcel is also a part, or (C) within 2,000 feet of the environmentally impaired parcel.
(2) “Borrower” means the trustor under a deed of trust, or a mortgagor under a mortgage, where the deed of trust or mortgage encumbers real property security and secures the performance of the trustor or mortgagor under a loan, extension of credit, guaranty, or other obligation. The term includes any successor-in-interest of the trustor or mortgagor to the real property security before the deed of trust or mortgage has been discharged, reconveyed, or foreclosed upon.
(3) “Environmentally impaired” means that the estimated costs to clean up and remediate a past
or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security, not disclosed in writing to, or otherwise actually known by, the secured lender prior to before the making of the loan or extension of credit secured by the real property security, exceeds 25 percent of the higher of the aggregate fair market value of all security for the loan or extension of credit (A) at the time of the making of the loan or extension of credit, or (B) at the time of the discovery of the release or threatened release by the secured lender. For purposes of this definition, the estimated cost to clean up and remediate the contamination caused by the release or threatened release shall include only those costs that would be incurred reasonably and in good faith, and fair market
value shall be determined without giving consideration to the release or threatened release, and shall be exclusive of the amount of all liens and encumbrances against the security that are senior in priority to the lien of the secured lender. Notwithstanding the foregoing, the real property security for any loan or extension of credit secured by a single parcel of real property which that is included in the National Priorities List pursuant to Section 9605 of Title 42 of the United States Code, or in any list published by the Department of Toxic Substances Control pursuant to Section 78760 of the Health and Safety Code, shall be deemed to be environmentally impaired.
(4) “Hazardous substance” means any of the following:
(A) Any “hazardous substance” as defined in subdivision (h) of Section 25281 of the Health and Safety Code.
(B) Any “waste” as defined in subdivision (d) of Section 13050 of the Water Code.
(C) Petroleum, including crude oil or any fraction thereof, natural gas, natural gas
methane, methane liquids, liquefied natural gas, methane, or synthetic gas usable for fuel, or any mixture thereof.
(5) “Real property security” means any real property and improvements, other than a separate interest and any related interest in the common area of a residential common interest development, as the terms “separate interest,” “common area,” and “common interest development” are defined in Sections 4095, 4100, and 4185 of the Civil Code, or real property which that contains only 1 to 15 dwelling units, which
that in either case (A) is solely used (i) for residential purposes, or (ii) if reasonably contemplated by the parties to the deed of trust or mortgage, for residential purposes as well as limited agricultural or commercial purposes incidental thereto, and (B) is the subject of an issued certificate of occupancy unless the dwelling is to be owned and occupied by the borrower.
(6) “Related party” means any person who shares an ownership interest with the borrower in the real property security, or is a partner or joint venturer with the borrower in a partnership or joint venture, the business of which includes the acquisition, development, use, lease, or sale of the real property security.
(7) “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the
environment, including continuing migration, of hazardous substances into, onto, or through soil, surface water, or groundwater. The term does not include actions directly relating to the incorporation in a lawful manner of building materials into a permanent improvement to the real property security.
(8) “Secured lender” means the beneficiary under a deed of trust against the real property security, or the mortgagee under a mortgage against the real property security, and any successor-in-interest of the beneficiary or mortgagee to the deed of trust or mortgage.
(f) This section shall not be construed to invalidate or otherwise affect in any manner any rights or obligations arising under contract in connection with a loan or extension of credit, including, without limitation, provisions limiting recourse.
(g) This
section shall only apply to loans, extensions of credit, guaranties, or other obligations secured by real property security made, renewed, or modified on or after January 1, 1992.
SEC. 16.
Section 736 of the Code of Civil Procedure is amended to read:736.
(a) Notwithstanding any other(b) The damages a secured lender may recover pursuant to subdivision (a) shall be limited to reimbursement or indemnification of the following:
(1) If not pursuant to an order of any federal, state, or local governmental agency relating to the cleanup, remediation, or other response action
required by applicable law, those costs relating to a reasonable and good faith cleanup, remediation, or other response action concerning a release or threatened release of hazardous substances which that is anticipated by the environmental provision.
(2) If pursuant to an order of any federal, state, or local governmental agency relating to the cleanup, remediation, or other response action required by applicable law which that is anticipated by the environmental provision, all amounts reasonably advanced in good faith by the secured lender in connection therewith,
provided that the secured lender negotiated, or attempted to negotiate, in good faith to minimize the amounts it was required to advance under the order.
(3) Indemnification against all liabilities of the secured lender to any third party relating to the breach and not arising from acts, omissions, or other conduct which occur that occurs after the borrower is no longer an owner or operator of the real property security, and provided the secured lender is not responsible for the environmentally impaired condition of the real property security in accordance with the standards set forth in subdivision (d) of Section 726.5. For purposes of this paragraph, the term “owner or operator” means those persons described in Section 101(20)(A) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601, et seq.).
(4) (A) Attorneys’ fees and costs incurred by the secured lender relating to the breach.
The
(B) The damages a secured lender may recover pursuant to subdivision (a) shall not include (i) any part of the principal amount or accrued interest of the secured obligation, except for any amounts advanced by
the secured lender to cure or mitigate the breach of the environmental provision that are added to the principal amount, and contractual interest thereon, or (ii) amounts which that relate to a release which that was knowingly permitted, caused, or contributed to by the secured lender or any affiliate or agent of the secured lender.
(c) A secured lender may
shall not recover damages against a borrower pursuant to subdivision (a) for amounts advanced or obligations incurred for the cleanup or other remediation of real property security, and related attorneys’ fees and costs, if all of the following are true:
(1) The original principal amount of, or commitment for, the loan or other obligation secured by the real property security did not exceed two hundred thousand dollars ($200,000).
(2) In conjunction with the secured lender’s acceptance of the environmental provision, the secured lender agreed in writing to accept the real property security on the basis of a completed environmental site assessment and other relevant information from the borrower.
(3) The borrower did not permit, cause, or contribute to the release or threatened
release.
(4) The deed of trust or mortgage covering the real property security has not been discharged, reconveyed, or foreclosed upon.
(d) This section is not intended to establish, abrogate, modify, limit, or otherwise affect any cause of action other than that provided by subdivision (a) that a secured lender may have against a borrower under an environmental provision.
(e) This section shall apply only to environmental provisions contracted in conjunction with loans, extensions of credit, guaranties, or other obligations made, renewed, or modified on or after January 1, 1992. Notwithstanding the foregoing, this section shall not be construed to validate, invalidate, or otherwise affect in any manner the rights and obligations of the parties to, or the enforcement of, environmental provisions contracted before
January 1, 1992.
(f) For purposes of this section:
(1) “Borrower” means the trustor under a deed of trust, or a mortgagor under a mortgage, where the deed of trust or mortgage encumbers real property security and secures the performance of the trustor or mortgagor under a loan, extension of credit, guaranty, or other obligation. The term includes any successor-in-interest of the trustor or mortgagor to the real property security before the deed of trust or mortgage has been discharged, reconveyed, or foreclosed upon.
(2) “Environmental provision” means any written representation, warranty, indemnity, promise, or covenant relating to the existence, location, nature, use, generation, manufacture, storage, disposal, handling, or past, present, or future release or threatened release, of any hazardous substance into,
onto, beneath, or from the real property security, or to past, present, or future compliance with any law relating thereto, made by a borrower in conjunction with the making, renewal, or modification of a loan, extension of credit, guaranty, or other obligation involving the borrower, whether or not the representation, warranty, indemnity, promise, or covenant is or was contained in or secured by the deed of trust or mortgage, and whether or not the deed of trust or mortgage has been discharged, reconveyed, or foreclosed upon.
(3) “Hazardous substance” means any of the following:
(A) Any “hazardous substance” as defined in subdivision (h) of Section 25281 of the Health and Safety Code.
(B) Any “waste” as defined in subdivision (d) of Section 13050 of the Water Code.
(C) Petroleum, including crude oil or any fraction thereof, natural gas, natural gas
methane, methane liquids, liquefied natural gas, methane, or synthetic gas usable for fuel, or any mixture thereof.
(4) “Real property security” means any real property and improvements, other than a separate interest and any related interest in the common area of a residential common interest development, as the terms “separate interest,” “common area,” and “common interest development” are defined in Sections 4095, 4100, and 4185 of the Civil Code, or real property which that contains only 1 to 15 dwelling units, which
that in either case (A) is solely used (i) for residential purposes, or (ii) if reasonably contemplated by the parties to the deed of trust or mortgage, for residential purposes as well as limited agricultural or commercial purposes incidental thereto, and (B) is the subject of an issued certificate of occupancy unless the dwelling is to be owned and occupied by the borrower.
(5) “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, including continuing migration, of hazardous substances into, onto, or through soil, surface water, or groundwater. The term does not include actions directly relating to the incorporation in a lawful manner of building materials into a permanent improvement to the real property security.
(6) “Secured
lender” means the beneficiary under a deed of trust against the real property security, or the mortgagee under a mortgage against the real property security, and any successor-in-interest of the beneficiary or mortgagee to the deed of trust or mortgage.
SEC. 17.
Section 17213 of the Education Code is amended to read:17213.
The governing board of a school district shall not approve a project involving the acquisition of a schoolsite by a school district, unless all of the following occur:(a) The school district, as the lead agency, as defined in Section 21067 of the Public Resources Code, determines that the property purchased or to be built upon is not any of the following:
(1) The site of a current or former hazardous waste disposal site or solid waste disposal site, unless if the site was a former solid waste disposal site, the governing board of the school district concludes that the wastes have been removed.
(2) A hazardous substance release site identified by the
Department of Toxic Substances Control in a current list adopted pursuant to Article 5 (commencing with Section 78760) of Chapter 4 of Part 2 of Division 45 of the Health and Safety Code for removal or remedial action pursuant to Part 2 (commencing with Section 78000) of Division 45 of the Health and Safety Code.
(3) A site that contains one or more pipelines, situated underground or aboveground, that carries hazardous substances, extremely hazardous substances, or hazardous wastes, unless the pipeline is a natural gas methane line that is used only to supply natural gas methane
to that school or neighborhood.
(b) The school district, as the lead agency, as defined in Section 21067 of the Public Resources Code, in preparing the environmental impact report or negative declaration has consulted with the administering agency in which the proposed schoolsite is located, pursuant to Section 2735.3 of Title 19 of the California Code of Regulations, and with any air pollution control district or air quality management district having jurisdiction in the area, to identify both permitted and nonpermitted facilities within that district’s authority, including, but not limited to, freeways and other busy traffic corridors, large agricultural operations, and railyards, within one-fourth of a mile of the proposed schoolsite, that might reasonably be anticipated to emit hazardous air emissions, or to handle hazardous or extremely hazardous materials, substances, or waste. The school district, as the lead agency, shall
include a list of the locations for which information is sought.
(c) The governing board of the school district makes one of the following written findings:
(1) Consultation identified none of the facilities or significant pollution sources specified in subdivision (b).
(2) The facilities or other pollution sources specified in subdivision (b) exist, but one of the following conditions applies:
(A) The health risks from the facilities or other pollution sources do not and will not constitute an actual or potential endangerment of public health to persons who would attend or be employed at the school.
(B) The governing board finds that corrective measures required under an existing order by
another governmental entity that has jurisdiction over the facilities or other pollution sources will, before the school is occupied, result in the mitigation of all chronic or accidental hazardous air emissions to levels that do not constitute an actual or potential endangerment of public health to persons who would attend or be employed at the proposed school. If the governing board makes this finding, the governing board shall also make a subsequent finding, prior to before the occupancy of the school, that the emissions have been mitigated to these levels.
(C) For a schoolsite with a boundary that is within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor, the governing board of the school district
determines, through analysis pursuant to paragraph (2) of subdivision (b) of Section 44360 of the Health and Safety Code, based on appropriate air dispersion modeling, and after considering any potential mitigation measures, that the air quality at the proposed site is such that neither short-term nor long-term exposure poses significant health risks to pupils.
(D) The governing board finds that neither of the conditions set forth in subparagraph (B) or (C) can be met, and the school district is unable to locate an alternative site that is suitable due to a severe shortage of sites that meet the requirements in subdivision (a). If the governing board makes this finding, the governing board shall adopt a statement of overriding considerations pursuant to Section 15093 of Title 14 of the California Code of Regulations.
(d) As used in this section:
(1) “Hazardous air emissions” means emissions into the ambient air of air contaminants that have been identified as a toxic air contaminant by the State Air Resources Board or by the air pollution control officer for the jurisdiction in which the project is located. As determined by the air pollution control officer, hazardous air emissions also means emissions into the ambient air from any substance identified in subdivisions (a) to (f), inclusive, of Section 44321 of the Health and Safety Code.
(2) “Hazardous substance” means any substance defined in subdivision (a) of Section 78075 of the Health and Safety Code.
(3) “Extremely hazardous substances” means any material defined pursuant to paragraph (2) of subdivision (i) of Section 25532 of the Health and Safety Code.
(4) “Hazardous waste” means any waste defined in Section 25117 of the Health and Safety Code.
(5) “Hazardous waste disposal site” means any site defined in Section 25114 of the Health and Safety Code.
(6) “Administering agency” means any agency designated pursuant to Section 25502 of the Health and Safety Code.
(7) “Handle” means handle as defined in Article 1 (commencing with Section 25500) of Chapter 6.95 of Division 20 of the Health and Safety Code.
(8) “Facilities” means any source with a potential to use, generate, emit, or discharge hazardous air pollutants, including, but not limited to, pollutants that meet the definition of a hazardous substance, and whose process or operation is identified as an emission source pursuant to the
most recent list of source categories published by the State Air Resources Board.
(9) “Freeway or other busy traffic corridors” means those roadways that, on an average day, have traffic in excess of 50,000 vehicles in a rural area, as defined in Section 50101 of the Health and Safety Code, and 100,000 vehicles in an urban area, as defined in Section 50104.7 of the Health and Safety Code.
SEC. 18.
Section 824 of the Evidence Code is amended to read:824.
(a) Notwithstanding any other provision of this article, a just and equitable method of determining the value of nonprofit, special use property, as defined by Section 1235.155 of the Code of Civil Procedure, for which there is no relevant, comparable market, is the cost of purchasing land and the reasonable cost of making it suitable for the conduct of the same nonprofit, special use, together with the cost of constructing similar improvements. The method for determining compensation for improvements shall be as set forth in subdivision (b).(b) Notwithstanding any other provision of this article, a witness providing opinion testimony on the value of nonprofit, special use property, as defined by Section 1235.155 of the Code
of Civil Procedure, for which there is no relevant, comparable market, shall base his or her their opinion on the value of reproducing the improvements without taking into consideration any depreciation or obsolescence of the improvements.
(c) This section does not apply to actions or proceedings commenced by a public entity or public utility to acquire real property or any interest in real property for the use of water, sewer, electricity, telephone, natural gas, methane, or flood control facilities or rights-of-way where those acquisitions neither require removal or
destruction of existing improvements, nor render the property unfit for the owner’s present or proposed use.
SEC. 19.
Section 819 of the Financial Code is amended to read:819.
Bonds and debentures of gas,(a) Bonds or debentures of a gas, electric,
electrical, or gas and electric electrical company shall be of an issue that originally amounted to not less than one million dollars ($1,000,000) and, if bonds, be secured by a mortgage on substantially all of its physical property, and, if debentures, shall be issued by a company substantially all of whose physical property is free of mortgage and must carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a public utility corporation that meets all of the following conditions:
(1) Derives more than 50 percent of its gross operating revenue from the business of supplying electricity, artificial
gas, or natural gas
methane, or all or any of them, and at least 80 percent of its gross operating revenue from all or any of the public utility businesses enumerated in this section.
(2) Shall have had a gross operating revenue of not less than seven million five hundred thousand dollars ($7,500,000) for its most recent fiscal year.
(3) Has a funded debt not exceeding two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves for depreciation, retirement, or amortization of that physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding
voting shares of the subsidiary corporation.
(4) Shall have had earnings including earnings of subsidiaries mentioned in paragraph (3), available for interest payments, before deduction of state and federal taxes imposed on or measured by income or profits, during four of the five most recent fiscal years and during the most recent fiscal year equal to at least twice the existing annual interest charges on the corporation’s total funded debt during those respective fiscal years.
(b) Bonds or debentures of telephone companies shall be of an issue originally amounting to at least one million dollars ($1,000,000) and, if bonds, be secured by a mortgage on substantially all of the physical property of the company, and if debentures shall be issued by a company substantially all of whose physical property is free of mortgage and shall carry a covenant to be secured equally with any
mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company that meets all of the following conditions:
(1) During its last fiscal year had gross revenues of at least seven million five hundred thousand dollars ($7,500,000), more than 50 percent of which was derived from owned properties used in furnishing telephone and other communication services and at least 80 percent of its gross revenues from all or any of the public utility businesses enumerated in this section.
(2) Whose funded debt does not exceed two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves shown on the statement for depreciation,
retirement or amortization of such physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation.
(3) Which for four of the five most recent fiscal years and for the last fiscal year had earnings including earnings of subsidiaries mentioned in paragraph (2) available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, at least equal to twice the interest charges on the company’s total funded debt during such respective fiscal years.
(c) Water company bonds or debentures shall be of an issue originally amounting to at least one million dollars ($1,000,000) and if bonds, be secured by a first mortgage on the company’s property, and if
debentures, shall be issued by a company substantially all of whose property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company that meets all of the following conditions:
(1) Is the supplier of substantially all water for domestic use in a community or communities having a population of not less than 25,000.
(2) Whose funded debt does not exceed two-thirds of the value of its physical property as shown by the published statement of the company for its next preceding fiscal period, less the amount of any reserves shown for depreciation, retirement or amortization of such physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less
than 90 percent of the outstanding voting shares of the subsidiary corporation.
(3) Which for four out of the five most recent fiscal years and for the most recent fiscal year shall have had earnings including those of subsidiaries mentioned in paragraph (2) available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, of at least one and one-half times the interest charges on the company’s total funded debt during the respective fiscal years.
SEC. 20.
Section 7274 of the Financial Code is amended to read:7274.
Bonds and debentures of gas,(a) Bonds or debentures of gas, electric,
electrical, or gas and electric electrical companies shall be of an issue that originally amounted to not less than one million dollars ($1,000,000) and, if bonds, be secured by a mortgage on substantially all of its physical property, and, if debentures, shall be issued by a company substantially all of whose physical property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a public utility corporation, which that does all of the
following:
(1) Derives more than 50 percent of its gross operating revenue from the business of supplying electricity, artificial gas, or natural gas methane, or all or any of these services, and at least 80 percent of its gross operating revenue from all or any of the public utility businesses enumerated in this section.
(2) Has a gross operating revenue of not less than seven million five hundred thousand dollars ($7,500,000) for its most recent fiscal year.
(3) Has a funded debt not exceeding two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public
accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves for depreciation, retirement, or amortization of the physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation.
(4) Has had earnings, including earnings of subsidiaries mentioned in paragraph (3), available for interest payments, before deduction of state and federal taxes imposed on or measured by income or profits, during four of the five most recent fiscal years and during the most recent fiscal year equal to at least twice the existing annual interest charges on the corporation’s total funded debt during those respective fiscal years.
(b) Bonds or debentures of telephone
companies shall be of an issue originally amounting to at least one million dollars ($1,000,000) and, if bonds, secured by a mortgage on substantially all of the physical property of the company, and, if debentures, be issued by a company substantially all of whose physical property is free of mortgage and shall carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company subject to the following:
(1) The company has during its last fiscal year had gross revenues of at least seven million five hundred thousand dollars ($7,500,000), more than 50 percent of which was derived from owned properties used in furnishing telephone and other communication services and at least 80 percent of its gross revenues from all or any of the public utility businesses enumerated in this section.
(2) The funded debt does not exceed two-thirds of the value of its physical property as shown by the books of the corporation or by a statement of a certified public accountant issued within one year, which statement may be based upon the books of the corporation, less the amount of any reserves shown on the statement for depreciation, retirement, or amortization as the physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation.
(3) For four of the five most recent fiscal years and for the last fiscal year has had earnings, including earnings of subsidiaries mentioned in paragraph (2), available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits,
at least equal to twice the interest charges on the company’s total funded debt during those respective fiscal years.
(c) Water company bonds or debentures shall be of an issue originally amounting to at least one million dollars ($1,000,000) and, if bonds, secured by a first mortgage on the company’s property, and, if debentures, issued by a company substantially all of whose property is free of mortgage and carry a covenant to be secured equally with any mortgage indebtedness, except a purchase money mortgage, subsequently issued, and both bonds and debentures shall be issued by a company subject to the following:
(1) The company is the supplier of substantially all water for domestic use in a community or communities having a population of not less than 25,000.
(2) The funded debt of the company does not exceed
two-thirds of the value of its physical property as shown by the published statement of the company for its next preceding fiscal period, less the amount of any reserves shown for depreciation, retirement, or amortization of the physical property. Physical property of a corporation shall include the physical property of a subsidiary corporation if the corporation owns not less than 90 percent of the outstanding voting shares of the subsidiary corporation.
(3) For four out of the five most recent fiscal years and for the most recent fiscal year has had earnings, including those of subsidiaries mentioned in paragraph (2), available for the payment of interest charges, before deduction of state and federal taxes imposed on or measured by income or profits, of at least one and one-half times the interest charges on the company’s total funded debt during those respective fiscal years.
SEC. 21.
Section 32202 of the Financial Code is amended to read:32202.
“Conventional energy fuel” means any fuel derived from petroleum depositsSEC. 22.
Section 6602 of the Fish and Game Code is amended to read:6602.
For purposes of this chapter, the following terms have the following meanings:(a) “Applicant” means the owner or operator of an offshore oil structure in state or federal waters or another party responsible for decommissioning an offshore oil structure in state or federal waters who applies pursuant to this chapter to carry out partial removal of the structure.
(b) “Commission” means the State Lands Commission.
(c) “Conservancy” means the State Coastal Conservancy.
(d) “Cost savings” means the difference between the estimated cost to the applicant of complete removal of an oil platform as
required by state and federal leases and the estimated costs to the applicant of partial removal of the oil platform pursuant to this chapter.
(e) “Council” means the Ocean Protection Council.
(f) “Endowment” means the California Endowment for Marine Preservation established in Division 37 (commencing with Section 71500) of the Public Resources Code.
(g) “Exclusive economic zone (EEZ)” means the zone as measured from the mean high tide line seaward to 200 nautical miles, as set forth in Presidential Proclamation 5030 of March 10, 1983, in which the United States proclaimed jurisdiction over the resources of the ocean within 200 miles of the coastline.
(h) “National Fishing Enhancement Act of 1984” means Title II of Public Law 98-623.
(i) “Offshore oil structure” means platforms, piers, and artificial islands located seaward of mean lower low water, used for oil and gas exploration, development, production, processing, or storage.
(j) “Oil” means any kind of petroleum, liquid hydrocarbons, natural gas, methane, or petroleum products or any fraction or residues therefrom.
(k) “Open coastal marine resources” means those marine resources that use open coastal waters as their habitat.
(l) “Open coastal waters” means the area composed of the submerged lands of the state that are below the mean lower low
water, extending seaward to the boundaries of the exclusive economic zone.
(m) “Partial removal” means an alternative to full removal of an offshore oil structure, in compliance with all requirements of this chapter.
(n) “State waters” means waters within the seaward boundary of the state as identified in Section 2 of Article III of the California Constitution.
SEC. 23.
Section 4216 of the Government Code is amended to read:4216.
As used in this article, the following definitions apply:(a) “Active subsurface installation” means a subsurface installation currently in use or currently carrying service.
(b) “Board” means the California Underground Facilities Safe Excavation Board, also known as the “Dig Safe Board.”
(c) “Area of continual excavation” means a location where excavation is part of the normal business activities of agricultural operations and flood control facilities.
(d) “Delineate” means to mark in white the location or path of the proposed excavation using the guidelines in Appendix B of the “Guidelines for
Excavation Delineation” published in the most recent version of the Best Practices guide of the Common Ground Alliance. If there is a conflict between the marking practices in those guidelines and other provisions of this article, this article shall control. “Delineation” also includes physical identification of the area to be excavated using alternative marking methods, including, but not limited to, flags, stakes, whiskers, or a combination of these methods, if an excavator makes a determination that standard delineation may be misleading to those persons using affected streets and highways, or be misinterpreted as a traffic or pedestrian control, and the excavator has contacted the regional notification center to advise the operators that the excavator will physically identify the area to be excavated using alternative marking methods.
(e) “Electronic positive response” means an electronic response from an operator to the regional
notification center providing the status of an operator’s statutorily required response to a ticket.
(f) (1) “Emergency” means a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services.
(2) “Unexpected occurrence” includes, but is not limited to, a fire, flood, earthquake or other soil or geologic movement, riot, accident, damage to a subsurface installation requiring immediate repair, or sabotage.
(g) “Excavation” means any operation in which earth, rock, or other material in the ground is moved, removed, or otherwise displaced by means of tools, equipment, or explosives in any of the following ways: grading, trenching, digging, ditching, drilling,
augering, tunneling, scraping, cable or pipe plowing and driving, or any other way.
(h) Except as provided in Section 4216.8, “excavator” means any person, firm, contractor or subcontractor, owner, operator, utility, association, corporation, partnership, business trust, public agency, or other entity that, with their own employees or equipment, performs any excavation.
(i) “Hand tool” means a piece of equipment used for excavating that uses human power and is not powered by any motor, engine, hydraulic, or pneumatic device.
(j) “High priority subsurface installation” means high-pressure natural gas methane pipelines with normal
operating pressures greater than 415kPA gauge (60psig), petroleum pipelines, pressurized sewage pipelines, high-voltage electric electrical supply lines, conductors, or cables that have a potential to ground of greater than or equal to 60kv, or hazardous materials pipelines that are potentially hazardous to workers or the public if damaged.
(k) “Inactive subsurface installation” means either of the following:
(1) The portion of an underground subsurface installation that is not active but is still connected to the subsurface installation, or to any other subsurface installation, that is active or still carries service.
(2) A new
underground subsurface installation that has not been connected to any portion of an existing subsurface installation.
(l) “Legal excavation start date and time” means two working days, not including the date of notification, unless the excavator specifies a later date and time, which shall not be more than 14 calendar days from the date of notification. For excavation in an area of continual excavation, “legal excavation start date and time” means two working days, not including the date of notification, unless the excavator specifies a later date and time, which shall not be more than six months from the date of notification.
(m) “Local agency” means a city, county, city and county, school district, or special district.
(n) (1) “Locate and field mark” means to indicate the existence of any
owned or maintained subsurface installations by using the guidelines in Appendix B of the “Guidelines for Operator Facility Field Delineation” published in the most recent version of the Best Practices guide of the Common Ground Alliance and in conformance with the uniform color code of the American Public Works Association. If there is a conflict between the marking practices in the guidelines and this article, this article shall control.
(2) “Locate and field mark” does not require an indication of the depth.
(o) “Operator” means any person, corporation, partnership, business trust, public agency, or other entity that owns, operates, or maintains a subsurface installation. For purposes of Section 4216.1, an “operator” does not include an owner of real property where subsurface installations are exclusively located if they are used exclusively to furnish services on that property
and the subsurface facilities are under the operation and control of that owner.
(p) “Qualified person” means a person who completes a training program in accordance with the requirements of Section 1509 of Title 8 of the California Code of Regulations Injury and Illness Prevention Program, that meets the minimum locators training guidelines and practices published in the most recent version of the Best Practices guide of the Common Ground Alliance.
(q) “Regional notification center” means a nonprofit association or other organization of operators of subsurface installations that provides advance warning of excavations or other work close to existing subsurface installations, for the purpose of protecting those installations from damage, removal, relocation, or repair.
(r) “State agency” means every state agency,
department, division, bureau, board, or commission.
(s) “Subsurface installation” means any underground pipeline, conduit, duct, wire, or other structure, except nonpressurized sewerlines, nonpressurized storm drains, or other nonpressurized drain lines.
(t) “Ticket” means an excavation location request issued a number by the regional notification center.
(u) “Tolerance zone” means 24 inches on each side of the field marking placed by the operator in one of the following ways:
(1) Twenty-four inches from each side of a single marking, assumed to be the centerline of the subsurface installation.
(2) Twenty-four inches plus one-half the specified size on each side of a single marking with
the size of installation specified.
(3) Twenty-four inches from each outside marking that graphically shows the width of the outside surface of the subsurface installation on a horizontal plane.
(v) “Working day” for the purposes of determining excavation start date and time means a weekday Monday through Friday, from 7:00 a.m. to 5:00 p.m., except for federal holidays and state holidays, as defined in Section 19853, or as otherwise posted on the internet website of the regional notification center.
SEC. 24.
Section 4216.3 of the Government Code is amended to read:4216.3.
(a) (1) (A) Unless the excavator and operator mutually agree to a later start date and time, or otherwise agree to the sequence and timeframe in which the operator will locate and field mark, an operator shall do one of the following before the legal excavation start date and time:(i) Locate and field mark within the area delineated for excavation and, where multiple subsurface installations of the same type are known to exist together, mark the number of subsurface installations.
(ii) To the extent and degree of accuracy that the information is available, provide information to an excavator where the operator’s active or inactive subsurface installations
are located.
(iii) Advise the excavator it operates no subsurface installations in the area delineated for excavation.
(B) An operator shall mark newly installed subsurface installations in areas with continuing excavation activity.
(C) An operator shall indicate with an “A” inside a circle the presence of any abandoned subsurface installations, if known, within the delineated area. The markings are to make an excavator aware that there are abandoned subsurface installations within that delineated work area.
(2) Only a qualified person shall perform subsurface installation locating activities.
(3) A qualified person performing subsurface installation locating activities on behalf of an
operator shall use a minimum of a single-frequency utility locating device and shall have access to alternative sources for verification, if necessary.
(4) An operator shall amend, update, maintain, and preserve all plans and records for its subsurface installations as that information becomes known. If there is a change in ownership of a subsurface installation, the records shall be turned over to the new operator. Commencing January 1, 2017, records on abandoned subsurface installations, to the extent that those records exist, shall be retained.
(5) Commencing January 1, 2023, all new subsurface installations shall be mapped using a geographic information system and maintained as permanent records of the operator. This paragraph shall not apply to oil and gas flowlines three inches or less in diameter that are located within the administrative boundaries of an oil field as
designated by the Geologic Energy Management Division. For purposes of this paragraph, the following terms have the following meanings:
(A) “Flowline” means any pipeline that connects an oil, gas, or natural gas methane liquids well with a gathering line or header.
(B) “Gathering line” means a pipeline that transports liquid hydrocarbons between any of the following: multiple wells, a testing facility, a treating and production facility, a storage facility, or a custody transfer facility.
(C) “Header” means a chamber from which liquid or gas is distributed to or from smaller pipelines.
(6) Nothing in this section shall be interpreted to preempt the Professional Land Surveyors’ Act, as described in Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code.
(b) If the field marks are no longer reasonably visible, an excavator shall renotify the regional notification center with a request for remarks that can be for all or a portion of the excavation. Excavation shall cease in the area to be remarked. If the delineation markings are no longer reasonably visible, the excavator shall redelineate the area to be remarked. If remarks are requested, the operator shall have two working days, not including the date of request, to remark the subsurface installation. If the area to be remarked is not the full extent of the original excavation, the excavator shall delineate the portion to be remarked and provide a description of the area requested
to be remarked on the ticket. The excavator shall provide a description for the area to be remarked that falls within the area of the original location request.
(c) (1) (A) On and after January 1, 2021, every operator shall supply an electronic positive response through the regional notification center before the legal excavation start date and time. Upon a showing of good cause by an operator, the board may extend the time by which the operator is required to comply with this requirement. The board shall not grant an extension beyond December 31, 2021. The board shall determine which facts or circumstances constitute good cause.
(B) The regional notification center shall make the responses required by subparagraph (A) available to the excavator.
(2) The regional
notification centers shall annually report to the board regarding their continual technological development in their roles of facilitating communication between excavators and operators in a manner that enhances safety, accountability, and efficiency.
(d) (1) On or before January 1, 2021, the board shall adopt regulations to implement subparagraph (A) of paragraph (1) of subdivision (c). The initial adoption, amendment, or repeal of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6, and the board is hereby exempted for that purpose from the requirements of subdivision (b) of Section 11346.1. After the initial adoption, amendment, or repeal of an emergency regulation pursuant to this section, the board shall not request approval from the Office of Administrative Law to readopt the regulation as an emergency regulation pursuant to Section 11346.1.
(2) It is the intent of the Legislature, in authorizing the deviations in this section from the requirements and procedures of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2, to authorize the board to expedite the exercise of its power to implement regulations as its unique operational circumstances require.
(e) The excavator shall notify the appropriate regional notification center of the failure of an operator to identify subsurface installations pursuant to subparagraph (A) or (B) of paragraph (1) of subdivision (a), or subdivision (b). The notification shall include the ticket issued by the regional notification center. The regional notification center shall maintain a record of all notifications received pursuant to this subdivision for a period of not less than three years. The record shall be available for inspection pursuant to subdivision (f)
of Section 4216.2.
(f) If an operator or local agency knows that it has a subsurface installation embedded or partially embedded in the pavement that is not visible from the surface, the operator or local agency shall contact the excavator before pavement removal to communicate and determine a plan of action to protect that subsurface installation and excavator.
SEC. 25.
Section 4217.11 of the Government Code is amended to read:4217.11.
The following terms, whenever used in this chapter, have the meanings given in this section, except where the context clearly indicates otherwise:(a) “Alternate energy equipment” means equipment for the production or conversion of energy from alternate sources as its primary fuel source, such as solar, biomass, wind, geothermal, hydroelectricity under 30 megawatts, remote natural gas methane of less than one billion cubic feet estimated reserves per mile from an existing gas gathering line, natural gas
methane containing 850 or fewer British Thermal Units per standard cubic foot, or any other source of energy, the efficient use of which will reduce the use of fossil or nuclear fuels.
(b) “Cogeneration equipment” means equipment for cogeneration, as defined in Section 216.6 of the Public Utilities Code.
(c) “Conservation measures” means equipment, maintenance, load management techniques and equipment, or other measures to reduce energy use or make for a more efficient use of energy.
(d) “Conservation services” means the electrical, thermal, or other energy savings resulting from conservation measures, which shall be treated as a supply of such energy.
(e) “Energy conservation facility” means alternate energy
equipment, cogeneration equipment, or conservation measures located in public buildings or on land owned by public agencies.
(f) “Energy service contract” means a contract entered into by a public agency with any person, pursuant to which the person will provide electrical or thermal energy or conservation services to a public agency from an energy conservation facility.
(g) “Facility financing contract” means a contract entered into by a public agency with any person whereby the person provides financing for an energy conservation facility in exchange for repayment of the financing and all costs and expenses related thereto by the public agency. A facility financing contract may provide for the person with whom the public agency contracts to provide any combination of feasibility studies for, and design and construction of, all or part of the energy conservation facility in
addition to the financing and other related services, and may provide for an installment sale purchase, another form of purchase, or amortized lease of the energy conservation facility by the public agency.
(h) “Facility ground lease” means a lease of all, or any portion of, land or a public building owned by, or under lease to, a public agency to a person in conjunction with an energy service contract or a facility financing contract. A facility ground lease may include, in addition to the land on which energy conservation facilities will be located, easements, rights-of-way, licenses, and rights of access, for the construction, use, or ownership by the person of the facility and all related utility lines not owned or controlled by the interconnecting utility, and offsite improvements related thereto. A facility ground lease may also include the addition or improvement of utility lines and equipment owned by the interconnecting utility which
that
are necessary to permit interconnection between that utility and an energy conservation facility.
(i) “Person” means, but is not limited to, any individual, company, corporation, partnership, limited liability company, public agency, association, proprietorship, trust, joint venture, or other entity or group of entities.
(j) “Public agency” means the state, a county, city and county, city, district, community college district, school district, joint powers authority or other entity designated or created by a political subdivision relating to energy development projects, and any other political subdivision or public corporation in the state.
(k) “Public building” includes any structure, building, facility, or work which
that a public agency is authorized to construct or use, and automobile parking lots, landscaping, and other facilities, including furnishings and equipment, incidental to the use of any structure, building, facility, or work, and also includes the site thereof, and any easements, rights-of-way appurtenant thereto, or necessary for its full use.
SEC. 26.
Section 6546 of the Government Code is amended to read:6546.
In addition to other powers, any agency, commission, or board provided for by a joint powers agreement pursuant to Article 1 (commencing with Section 6500) may issue revenue bonds pursuant to this article to pay the cost and expenses of acquiring or constructing a project or conducting a program for any or all of the following purposes:(a) An exhibition building or other place for holding fairs or exhibitions for the display of agricultural, livestock, industrial, or other products, including movable equipment, entertainment facilities, and other facilities to be used in conjunction with holding a fair or exposition in several locations including those projects and facilities specified in paragraph (1) of subdivision (a) of Section 19606.1 of the
Business and Professions Code, that project and facility authorized by Article 3.5 (commencing with Section 4161) of Chapter 6 of Part 3 of Division 3 of the Food and Agricultural Code, and for those purposes specified in an agreement pursuant to Section 6516 of the Government Code.
(b) A coliseum, a stadium, a sports arena or sports pavilion or other building for holding sports events, athletic contests, contests of skill, exhibitions, spectacles, and other public meetings.
(c) Any other public buildings, including, but not limited to, general administrative facilities of a city, county, city and county, special district, or authority.
(d) A regional or local public park, recreational area, or recreational center, and all facilities and improvements related thereto.
(e) A facility for the generation or transmission of electrical energy electricity for public or private uses and all rights, properties, and improvements necessary therefor, including fuel and water facilities and resources. As used in this chapter, “transmission of electric energy” does not include the final distribution of electric energy to the consumer.
(f) A facility for the disposal, treatment, or conversion to energy and reusable materials of solid or hazardous waste or toxic substances.
(g) Facilities for the production, storage, transmission, or treatment of water or waste water.
(h) Local streets, roads, and bridges.
(i) Bridges and major thoroughfares construction pursuant to Sections 50029 and 66484.3.
(j) Mass transit facilities or vehicles.
(k) Publicly owned or operated commercial or general aviation airports and airport-related facilities.
(l) Police or fire stations.
(m) Public works facilities, including corporation yards.
(n) Public health facilities owned or operated by a city, county, city and county, special district, or authority.
(o) Criminal justice
facilities, including court buildings, jails, juvenile halls, and juvenile detention facilities.
(p) Public libraries.
(q) Publicly owned or operated parking garages.
(r) Low-income housing projects owned or operated by a city, county, city and county, or housing authority.
(s) Public improvements authorized in a project area created pursuant to the Community Redevelopment Law, Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code.
(t) Public improvements authorized pursuant to the Improvement Act of 1911, Division 7 (commencing with Section 5000) of the Streets and Highways Code, the Improvement Bond Act of 1915, Division 10 (commencing with Section 8500) of
the Streets and Highways Code, the Municipal Improvement Act of 1913, Division 12 (commencing with Section 10000) of the Streets and Highways Code, and the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5.
(u) Telecommunication systems or service, including, but not limited to, the installation, provision, or maintenance of that system or service.
(v) Programs, facilities, rights, properties, and improvements for the management, conservation, reuse, or recycling of electric capacity or energy, natural gas, methane, water, waste water, or recycled water, including demand side or load management and other programs and
facilities designed to reduce the demand for, or permit or promote the efficient use of, those resources.
“Programs,” for the purpose of this subdivision, shall include activities only to the extent the costs thereof may be charged to a capital account under applicable generally accepted accounting principles or are of a type required to be charged to a capital account by entities subject to regulation by the Public Utilities Commission or other regulatory body of the state.
(w) Equipment necessary to support the above-listed facilities or necessary to deliver public services therefrom, including, but not limited to, telecommunications equipment, computers, and service vehicles.
Bonds may be issued pursuant to this article if the joint powers entity, or its individual parties which
that contract pursuant to Section 6547.5, 6547.6, or 6547.7 to make payments to be applied to the payment of the indebtedness, have the power to acquire, construct, maintain, or operate one or more of the projects specified in this section.
SEC. 27.
Section 7267.9 of the Government Code is amended to read:7267.9.
(a)(b) This section does not apply to actions or proceedings commenced by a public entity or public utility to acquire real property or any interest in real property for the use of water, sewer, electricity, telephone, natural gas, methane, or flood control facilities or rights-of-way where those acquisitions neither require removal or destruction of existing improvements, nor render the property unfit for the owner’s present or proposed use.
SEC. 28.
Section 7513.7 of the Government Code is amended to read:7513.7.
(a) As used in this section, the following definitions shall apply:(1) “Board” means the Board of Administration of the Public Employees’ Retirement System or the Teachers’ Retirement Board of the State Teachers’ Retirement System, as applicable.
(2) “Business operations” means maintaining, selling, or leasing equipment, facilities, personnel, or any other apparatus of business or commerce in Iran, including the ownership or possession of real or personal property located in Iran.
(3) “Company” means a sole proprietorship, organization, association, corporation, partnership, venture, or other entity, its subsidiary or affiliate that
exists for profitmaking purposes or to otherwise secure economic advantage. “Company” also means a company owned or controlled, either directly or indirectly, by the government of Iran, that is established or organized under the laws of or has its principal place of business in Iran.
(4) “Energy sector of Iran” means activities to develop petroleum or natural gas methane resources or nuclear power in Iran.
(5) “Invest” or “investment” means the purchase, ownership, or control of stock of a company, association, or corporation, the capital stock of a mutual water company or corporation, bonds issued by the government or a political subdivision of Iran, corporate bonds or other debt instruments
issued by a company, or the commitment of funds or other assets to a company, including a loan or extension of credit to that company.
(6) “Iran” means the government of Iran and any agency or instrumentality of Iran.
(7) “Public employee retirement funds” means the Public Employees’ Retirement Fund described in Section 20062 of this code, and the Teachers’ Retirement Fund described in Section 22167 of the Education Code.
(8) “Substantial action” means a boycott of the government of Iran, curtailing business in Iran until that time described in subdivision (m), or selling company assets, equipment, or real and personal property located in Iran.
(b) The board shall not invest public employee retirement funds in a company which
that has business operations in Iran as identified by the board through, as the board deems appropriate, publicly available information including, but not limited to, information provided by nonprofit and other organizations and government entities, that meets either of the following criteria:
(1) The company (A) is invested in or engaged in business operations with entities in the defense or nuclear sectors of Iran or (B) has an investment of twenty million dollars ($20,000,000) or more in the energy sector of Iran, including in a company that provides oil or liquefied natural gas methane tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas,
methane, for the energy sector of Iran, and that company is subject to sanctions under Public Law 104-172, as renewed and amended in 2001 and 2006.
(2) The company has demonstrated complicity with an Iranian organization that has been labeled as a terrorist organization by the United States government.
(c) Annually, on or before June 30, the board shall review its investment portfolio and determine which companies are subject to divestment.
(d) After the determination described in subdivision (c), the board shall determine, by the next applicable board meeting, if a company meets the criteria described in subdivision (b). If the board plans to invest or has investments in a company that meets the criteria described in subdivision (b), that planned or existing investment shall be
subject to subdivisions (g) and (h).
(e) Investments of the board in a company that does not meet the criteria described in subdivision (b) are not subject to subdivision (h) if the company does not subsequently meet the criteria described in subdivision (b). The board shall identify the reasons why that company does not satisfy the criteria described in subdivision (b) in the report to the Legislature described in subdivision (i).
(f) (1) Notwithstanding subdivisions (d) and (e), if the board’s investment in a company described in subdivision (b) is limited to investment via an externally and actively managed commingled fund, the board shall contact that fund manager in writing and request that the fund manager remove that company from the fund as described in subdivision (h). On or before June 30, if the fund or account manager creates a fund or account
devoid of companies described in subdivision (b), the transfer of board investments from the prior fund or account to the fund or account devoid of companies with business operations in Iran shall be deemed to satisfy subdivision (h).
(2) If the board’s investment in a company described in subdivision (b) is limited to an alternative fund or account, the alternative fund or account manager creates an actively managed commingled fund that excludes companies described in subdivision (b), and the new fund or account is deemed to be financially equivalent to the existing fund or account, the transfer of board investments from the existing fund or account to the new fund or account shall be deemed to satisfy subdivision (h). If the board determines that the new fund or account is not financially equivalent to the existing fund, the board shall include the reasons for that determination in the report described in subdivision (i).
(3) The board shall make a good faith effort to identify any private equity investments that involve companies described in subdivision (b), or are linked to the government of Iran. If the board determines that a private equity investment clearly involves a company described in subdivision (b), or is linked to the government of Iran, the board shall consider, at its discretion, if those private equity investments shall be subject to subdivision (h). If the board determines that a private equity investment clearly involves a company described in subdivision (b), or is linked to the government of Iran and the board does not take action as described in subdivision (h), the board shall include the reasons for its decision in the report described in subdivision (i).
(g) Except as described in subdivisions (e) and (f), the board, in the board’s capacity of shareholder or investor, shall
notify any company described in subdivision (d) that the company is subject to subdivision (h) and permit that company to respond to the board. The board shall request that the company take substantial action no later than 90 days from the date the board notified the company under this subdivision. If the board determines based on credible information available to the public that a company has taken substantial action or has made sufficient progress toward substantial action before the expiration of that 90-day period, that company shall not be subject to subdivision (h). The board shall, at intervals not to exceed 90 days, continue to monitor and review the progress of the company until that company has taken substantial action in Iran. Any determination made at each 90-day interval that a company has taken substantial action shall be supported by findings adopted by a rollcall vote of the board following a presentation and discussion of the findings in open session, during a properly noticed public hearing
of the full board. All proposed findings of the board shall be made public 72 hours before they are considered by the board, and the board shall maintain a list of interested parties who shall be notified of proposed findings 72 hours before the board’s consideration. The findings and any public comments regarding the adopted findings and determinations made pursuant to this subdivision shall be included in the report to the Legislature required by subdivision (i). A company that fails to complete substantial action within one year from the date of the initial notice by the board shall be subject to subdivision (h).
(h) If a company described in subdivision (d) fails to complete substantial action by the time described in subdivision (g), the board shall take the following actions:
(1) The board shall not make additional or new investments or renew existing investments in that
company.
(2) The board shall liquidate the investments of the board in that company no later than 18 months after this subdivision applies to that company. The board shall liquidate those investments in a manner to address the need for companies to take substantial action in Iran and consistent with the board’s fiduciary responsibilities as described in Section 17 of Article XVI of the California Constitution.
(i) On or before January 1, 2009, and every year thereafter, the board shall file a report with the Legislature. The report shall describe the following:
(1) A list of investments the board has in companies with business operations that satisfy the criteria in subdivision (b), including, but not limited to, the issuer, by name, of the stock, bonds, securities, and other evidence of indebtedness.
(2) A detailed summary of the business operations a company described in paragraph (1) has in Iran.
(3) Whether the board has reduced its investments in a company that satisfies the criteria in subdivision (b).
(4) If the board has not completely reduced its investments in a company that satisfies the criteria in subdivision (b), when the board anticipates that the board will reduce all investments in that company or the findings adopted in support of a determination made pursuant to subdivision (k) pertaining to why a sale or transfer of investments is inconsistent with the fiduciary responsibilities of the board as described in Section 17 of Article XVI of the California Constitution.
(5) Any information described in subdivisions (d) and (e).
(6) A detailed summary of investments that were transferred to funds or accounts devoid of companies with business operations in Iran as described in subdivision (f).
(7) An annual calculation of any costs or investment losses or other financial results incurred in compliance with the provisions of this section.
(j) If the board voluntarily sells or transfers all of its investments in a company with business operations in Iran, this section shall not apply except that the board shall file a report with the Legislature related to that company as described in subdivision (i).
(k) Nothing in this section shall require the board to take action as described in this section if
the board determines, and adopts findings, in good faith and based on credible information available to the public, that the action described in this section would fail to satisfy the fiduciary responsibilities of the board as described in Section 17 of Article XVI of the California Constitution. Any adopted findings shall demonstrate how divestment disadvantages the fund and that any feasible investment alternatives would yield a lower rate of return with commensurate degrees of risk, or create a higher degree of risk with commensurate rates of return. Notwithstanding any other law, any determination that an action would fail to satisfy the fiduciary responsibilities of the board as described in Section 17 of Article XVI of the California Constitution shall require a recorded rollcall vote of the full board, following a presentation and discussion of findings in open session, during a properly noticed public hearing of the full board. All proposed findings of the board shall be made public 72 hours before
they are considered by the board, and the board shall maintain a list of interested parties who shall be notified of proposed findings 72 hours before board consideration. The findings and any public comments regarding the adopted findings and determinations made pursuant to this subdivision shall be included in the report to the Legislature required by subdivision (i).
(l) This section shall cease to be operative if the President of the United States has made the certifications specified in paragraphs (1) and (2) of subdivision (a) of Section 8551 of Title 22 of the United States Code.
(m) This section shall be known and may be cited as the California Public Divest from Iran Act.
(n) The provisions of this section are severable. If any provision of this section or its application is held invalid, that
invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 29.
Section 7922.700 of the Government Code is amended to read:7922.700.
For purposes of this article:(a) “Enterprise system” means a software application or computer system that satisfies all of the following conditions:
(1) It collects, stores, exchanges, and analyzes information that the agency uses.
(2) It is a multidepartmental system or a system that contains information collected about the public.
(3) It is a system of record.
(b) An “enterprise system” does not include any of the following:
(1) Information technology security
systems, including firewalls and other cybersecurity systems.
(2) Physical access control systems, employee identification management systems, video monitoring, and other physical control systems.
(3) Infrastructure and mechanical control systems, including those that control or manage street lights, electrical, natural gas, methane, or water or sewer functions.
(4) Systems related to 911 dispatch and operation or emergency services.
(5) Systems that would be restricted from disclosure pursuant to Section 7929.210.
(6) The specific records that the information technology system collects, stores, exchanges, or analyzes.
SEC. 30.
Section 8585.01 of the Government Code is amended to read:8585.01.
The Office of Emergency Services shall be the lead agency for emergency response to a large, ongoing leak or release ofSEC. 31.
Section 8670.3 of the Government Code is amended to read:8670.3.
Unless the context requires otherwise, the following definitions shall govern the construction of this chapter:(a) “Administrator” means the administrator for oil spill response appointed by the Governor pursuant to Section 8670.4.
(b) (1) “Best achievable protection” means the highest level of protection that can be achieved through both the use of the best achievable technology and those manpower levels, training procedures, and operational methods that provide the greatest degree of protection achievable. The administrator’s determination of which measures provide the best achievable protection shall be guided by the critical need to protect valuable natural resources and state waters, while also
considering all of the following:
(A) The protection provided by the measure.
(B) The technological achievability of the measure.
(C) The cost of the measure.
(2) The administrator shall not use a cost-benefit or cost-effectiveness analysis or any particular method of analysis in determining which measures provide the best achievable protection. The administrator shall instead, when determining which measures provide best achievable protection, give reasonable consideration to the protection provided by the measures, the technological achievability of the measures, and the cost of the measures when establishing the requirements to provide the best achievable protection for the natural resources of the state.
(c) (1) “Best achievable technology” means that technology that provides the greatest degree of protection, taking into consideration both of the following:
(A) Processes that are being developed, or could feasibly be developed anywhere in the world, given overall reasonable expenditures on research and development.
(B) Processes that are currently in use anywhere in the world.
(2) In determining what is the best achievable technology pursuant to this chapter, the administrator shall consider the effectiveness and engineering feasibility of the technology.
(d) “California oil spill contingency plan” means the California oil spill contingency plan prepared pursuant to
Article 3.5 (commencing with Section 8574.1) of Chapter 7.
(e) “Dedicated response resources” means equipment and personnel committed solely to oil spill response, containment, and cleanup that are not used for any other activity that would adversely affect the ability of that equipment and personnel to provide oil spill response services in the timeframes for which the equipment and personnel are rated.
(f) “Environmentally sensitive area” means an area defined pursuant to the applicable area contingency plans or geographic response plans, as created and revised by the Coast Guard, the United States Environmental Protection Agency, and the administrator.
(g) (1) “Facility” means any of the following located in state waters or located where an oil spill may impact state waters:
(A) A building, structure, installation, or equipment used in oil exploration, oil well drilling operations, oil production, oil refining, oil storage, oil gathering, oil processing, oil transfer, oil distribution, or oil transportation.
(B) A marine terminal.
(C) A pipeline that transports oil.
(D) A railroad that transports oil as cargo.
(E) A drill ship, semisubmersible drilling platform, jack-up type drilling rig, or any other floating or temporary drilling platform.
(F) A renewable fuel production facility.
(G) A renewable fuel receiving facility.
(2) “Facility” does not include any of the following:
(A) A vessel, except a vessel located and used for any purpose described in subparagraph (E) of paragraph (1).
(B) An owner or operator subject to Chapter 6.67 (commencing with Section 25270) or Chapter 6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code.
(C) Operations on a farm, nursery, logging site, or construction site that are either of the following:
(i) Do not exceed 20,000 gallons in a single storage tank.
(ii) Have a useable tank storage capacity not exceeding 75,000 gallons.
(D) A small craft refueling dock.
(h) “Local government” means a chartered or general law city, a chartered or general law county, or a city and county.
(i) (1) “Marine terminal” means any facility used for transferring oil to or from a tank ship or tank barge.
(2) “Marine terminal” includes, for purposes of this chapter, all piping not integrally connected to a tank facility, as defined in subdivision (n) of Section 25270.2 of the Health and Safety Code.
(j) “Marine waters” means those waters subject to tidal influence, and includes the waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton.
(k) “Mobile
transfer unit” means a vehicle, truck, or trailer, including all connecting hoses and piping, used for the transferring of oil at a location where a discharge could impact waters of the state.
(l) “Nondedicated response resources” means those response resources identified by an Oil Spill Response Organization for oil spill response activities that are not dedicated response resources.
(m) “Nonfloating oil” means a Group V oil, as defined in Section 155.1020 of Title 33 of the Code of Federal Regulations, including any Group V oil that is diluted with a diluent for transport. The administrator may define additional types of oil as nonfloating oil upon a finding that those types of oil are more likely to sink rapidly due to their composition.
(n) “Nonpersistent oil” means a petroleum-based oil, such as gasoline
or jet fuel, that evaporates relatively quickly and is an oil with hydrocarbon fractions, at least 50 percent of which, by volume, distills at a temperature of 645 degrees Fahrenheit, and at least 95 percent of which, by volume, distills at a temperature of 700 degrees Fahrenheit.
(o) “Nontank vessel” means a vessel of 300 gross tons or greater that carries oil, but does not carry that oil as cargo.
(p) “Oil” means either of the following:
(1) Any kind of petroleum, liquid hydrocarbons, or petroleum products or any fraction or residues therefrom, including, but not limited to, crude oil, bunker fuel, gasoline, diesel fuel, aviation fuel, oil sludge, oil refuse, oil mixed with waste, and liquid distillates from unprocessed natural gas.
methane.
(2) Renewable fuel.
(q) “Oil spill cleanup agent” means a chemical, or any other substance, used for removing, dispersing, or otherwise cleaning up oil or any residual products of petroleum in, or on, any of the waters of the state.
(r) “Oil spill contingency plan” or “contingency plan” means the oil spill contingency plan required pursuant to Article 5 (commencing with Section 8670.28).
(s) (1) “Oil spill response organization” or “OSRO” means an individual, organization, association, cooperative, or other entity that provides, or intends to provide, equipment, personnel, supplies, or other services directly related to oil spill containment, cleanup, or removal activities.
(2) “OSRO” does not include an owner or operator with an oil spill contingency plan approved by the administrator or an entity that only provides spill management services, or who provides services or equipment that are only ancillary to containment, cleanup, or removal activities.
(t) (1) “Owner” or “operator” means any of the following:
(A) In the case of a vessel, a person who owns, has an ownership interest in, operates, charters by demise, or leases the vessel.
(B) In the case of a facility, a person who owns, has an ownership interest in, or operates the facility.
(C) Except as provided in subparagraph (D), in the case of a vessel or facility, where title or
control was conveyed due to bankruptcy, foreclosure, tax delinquency, abandonment, or similar means to an entity of state or local government, a person who owned, held an ownership interest in, operated, or otherwise controlled activities concerning the vessel or facility immediately beforehand.
(D) An entity of the state or local government that acquired ownership or control of a vessel or facility, when the entity of the state or local government has caused or contributed to a spill or discharge of oil into waters of the state.
(2) “Owner” or “operator” does not include a person who, without participating in the management of a vessel or facility, holds indicia of ownership primarily to protect the person’s security interest in the vessel or facility.
(3) “Operator” does not include a person who owns the land
underlying a facility or the facility itself if the person is not involved in the operations of the facility.
(u) “Person” means an individual, trust, firm, joint stock company, or corporation, including, but not limited to, a government corporation, partnership, and association. “Person” also includes a city, county, city and county, district, and the state or any department or agency thereof, and the federal government, or any department or agency thereof, to the extent permitted by law.
(v) “Pipeline” means a pipeline used at any time to transport oil.
(w) “Railroad” means a railroad, railway, rail car, rolling stock, or train.
(x) “Rated OSRO” means an OSRO that has received a satisfactory rating from the administrator pursuant to Section
8670.30.
(y) “Renewable fuel” means any liquid produced from nonpetroleum renewable resources that is used or useable as a fuel, or such liquid that may be blended with other types of fuels. Renewable fuel includes fuels that may contain up to 5 percent petroleum products.
(z) “Renewable fuel production facility” means a facility that produces renewable fuel for blending or shipment.
(aa) “Renewable fuel receiving facility” means a facility that is the first point of receipt of renewable fuel in the state that originated from outside the state, that receives renewable fuel delivered by railroad tank car, tank truck, pipeline, or vessel. A renewable fuel receiving facility may include, but is not limited to, a refinery, a marine terminal, a rail tank car to tank truck transfer facility, or other storage and
distribution facility.
(ab) “Response efforts” means rendering care, assistance, or advice in accordance with the National Contingency Plan, the California oil spill contingency plan, or at the direction of the administrator, the United States Environmental Protection Agency, or the United States Coast Guard in response to a spill or a threatened spill into waters of the state.
(ac) “Responsible party” or “party responsible” means any of the following:
(1) The owner or transporter of oil or a person or entity accepting responsibility for the oil.
(2) The owner, operator, or lessee of, or a person that charters by demise, a vessel or facility, or a person or entity accepting responsibility for the vessel or facility.
(ad) “Small craft” means a vessel, other than a tank ship or tank barge, that is less than 20 meters in length.
(ae) “Small craft refueling dock” means a waterside operation that dispenses only nonpersistent oil in bulk and small amounts of persistent lubrication oil in containers primarily to small craft and meets both of the following criteria:
(1) Has tank storage capacity not exceeding 20,000 gallons in any single storage tank or tank compartment.
(2) Has total usable tank storage capacity not exceeding 75,000 gallons.
(af) “Small marine fueling facility” means either of the following:
(1) A mobile transfer unit.
(2) A fixed facility that is not a marine terminal, that dispenses primarily nonpersistent oil, that may dispense small amounts of persistent oil, primarily to small craft, and that meets all of the following criteria:
(A) Has tank storage capacity greater than 20,000 gallons but not more than 40,000 gallons in any single storage tank or storage tank compartment.
(B) Has total usable tank storage capacity not exceeding 75,000 gallons.
(C) Had an annual throughput volume of over-the-water transfers of oil that did not exceed 3,000,000 gallons during the most recent preceding 12-month period.
(ag) “Spill,” “discharge,” or “oil spill” means a release of any amount of oil into waters of the state
that is not authorized by a federal, state, or local government entity.
(ah) “Spill management team” means personnel and associated equipment that staff the organizational structure for managing some or all aspects of response, containment, and cleanup of a spill, utilizing an incident command or unified command structure.
(ai) “Tank barge” means a vessel that carries oil in commercial quantities as cargo but is not equipped with a means of self-propulsion.
(aj) “Tank ship” means a self-propelled vessel that is constructed or adapted for the carriage of oil in bulk or in commercial quantities as cargo.
(ak) “Tank vessel” means a tank ship or tank barge.
(al) “Vessel” means a watercraft or
ship of any kind, including every structure adapted to be navigated from place to place for the transportation of merchandise or persons.
(am) “Vessel carrying oil as secondary cargo” means a vessel that does not carry oil as a primary cargo, but does carry oil as cargo. The administrator may establish minimum oil volume amounts or other criteria by regulations.
(an) “Waters of the state” or “state waters” means any surface water, including saline waters, marine waters, and freshwaters, within the boundaries of the state but does not include groundwater.
SEC. 32.
Section 8670.56.5 of the Government Code is amended to read:8670.56.5.
(a) A responsible party, as defined in Section 8670.3, shall be absolutely liable without regard to fault for any damages incurred by any injured person that arise out of, or are caused by, a spill.(b) A responsible party is not liable to an injured person under this section for any of the following:
(1) Damages, other than costs of removal incurred by the state or a local government, caused solely by any act of war, hostilities, civil war, or insurrection or by an unanticipated grave natural disaster or other act of God of an exceptional, inevitable, and irresistible character, that could not have been prevented or avoided by the exercise of due care or foresight.
(2) Damages caused solely by the negligence or intentional malfeasance of that injured person.
(3) Damages caused solely by the criminal act of a third party other than the defendant or an agent or employee of the defendant.
(4) Natural seepage not caused by a responsible party.
(5) Discharge or leaking of oil or natural gas methane from a private pleasure boat or vessel.
(6) Damages that arise out of, or are caused by, a discharge that is authorized by a state or federal permit.
(c) The defenses provided in subdivision (b) shall not be available to a responsible party who fails to comply with Sections 8670.25, 8670.25.5, 8670.27, and 8670.62.
(d) Upon motion and sufficient showing by a party deemed to be a responsible party under this section, the court shall join to the action any other party who may be a responsible party under this section.
(e) In determining whether a party is a responsible party under this section, the court shall consider the results of chemical or other scientific tests conducted to determine whether oil or other substances produced, discharged, or controlled by the defendant matches the oil or other substance that caused the damage to the injured party. The defendant shall have the burden of producing the results of tests of samples of the substance that caused the
injury and of substances for which the defendant is responsible, unless it is not possible to conduct the tests because of unavailability of samples to test or because the substance is not one for which reliable tests have been developed. At the request of a party, any other party shall provide samples of oil or other substances within its possession or control for testing.
(f) The court may award reasonable costs of the suit, attorneys’ fees, and the costs of necessary expert witnesses to a prevailing plaintiff. The court may award reasonable costs of the suit and attorneys’ fees to a prevailing defendant if the court finds that the plaintiff commenced or prosecuted the suit pursuant to this section in bad faith or solely for purposes of harassing the defendant.
(g) This section does not prohibit a person from bringing an action for damages caused by oil or by exploration, under
any other provision or principle of law, including, but not limited to, common law. However, damages shall not be awarded pursuant to this section to an injured person for loss or injury for which the person is or has been awarded damages under any other provision or principle of law. Subdivision (b) does not create a defense not otherwise available regarding an action brought under any other provision or principle of law, including, but not limited to, common law.
(h) Damages for which responsible parties are liable under this section include the following:
(1) All costs of response, containment, cleanup, removal, and treatment, including, but not limited to, monitoring and administration costs incurred pursuant to the California oil spill contingency plan or actions taken pursuant to directions by the administrator.
(2) Injury to, or economic losses resulting from destruction of or injury to, real or personal property, which shall be recoverable by any claimant who has an ownership or leasehold interest in property.
(3) Injury to, destruction of or loss of, natural resources, including, but not limited to, the reasonable costs of rehabilitating wildlife, habitat, and other resources and the reasonable costs of assessing that injury, destruction, or loss, in an action brought by the state, a county, city, or district. Damages for the loss of natural resources may be determined by any reasonable method, including, but not limited to, determination according to the costs of restoring the lost resource.
(4) Loss of subsistence use of natural resources, which shall be recoverable by a claimant who so uses natural resources that have been injured, destroyed, or lost.
(5) Loss of taxes, royalties, rents, or net profit shares caused by the injury, destruction, loss, or impairment of use of real property, personal property, or natural resources.
(6) Loss of profits or impairment of earning capacity due to the injury, destruction, or loss of real property, personal property, or natural resources, which shall be recoverable by any claimant who derives at least 25 percent of his or her their earnings from the activities that utilize use the property or natural resources, or,
if those activities are seasonal in nature, 25 percent of his or her
their earnings during the applicable season.
(7) Loss of use and enjoyment of natural resources, public beaches, and other public resources or facilities, in an action brought by the state, a county, city, or district.
(i) Except as provided in Section 1431.2 of the Civil Code, liability under this section shall be joint and several. However, this section does not bar a cause of action that a responsible party has or would have, by reason of subrogation or otherwise, against a person.
(j) This section does not apply to claims for damages for personal injury or wrongful death, and does not limit the right of a person to bring an action for personal injury or wrongful death pursuant to any provision or principle of law.
(k) Payments made by a responsible party to cover liabilities arising from a discharge of oil, whether under this division or any other provision of federal, state, or local law, shall not be charged against royalties, rents, or net profits owed to the United States, the state, or any other public entity.
(l) An action that a private or public individual or entity may have against a responsible party under this section may be brought directly by the individual or entity or by the state on behalf of the individual or entity. However, the state shall not pursue an action on behalf of a private individual or entity that requests the state not to pursue that action.
(m) For purposes of this section, “vessels” means vessels as defined in Section 21 of the Harbors and Navigation
Code.
SEC. 33.
Section 11342.610 of the Government Code is amended to read:11342.610.
(a) “Small business” means a business activity in agriculture, general construction, special trade construction, retail trade, wholesale trade, services, transportation and warehousing, manufacturing, generation and transmission of electric power, or a health care facility, unless excluded in subdivision (b), that is both of the following:(1) Independently owned and operated.
(2) Not dominant in its field of operation.
(b) “Small business” does not include the following professional and business activities:
(1) A financial
institution including a bank, a trust, a savings and loan association, a thrift institution, a consumer finance company, a commercial finance company, an industrial finance company, a credit union, a mortgage and investment banker, a securities broker-dealer, or an investment adviser.
(2) An insurance company, either stock or mutual.
(3) A mineral, oil, or gas broker.
(4) A subdivider or developer.
(5) A landscape architect, an architect, or a building designer.
(6) An entity organized as a nonprofit institution.
(7) An entertainment activity or production, including a motion picture, a stage performance, a television or
radio station, or a production company.
(8) A utility, a water company, or a power an electrical transmission company generating and transmitting more than 4.5 million kilowatt hours annually.
(9) A petroleum producer, a natural gas methane producer, a refiner, or a pipeline.
(10) A manufacturing enterprise exceeding 250 employees.
(11) A health care facility exceeding 150
beds or one million five hundred thousand dollars ($1,500,000) in annual gross receipts.
(c) “Small business” does not include the following business activities:
(1) Agriculture, where the annual gross receipts exceed one million dollars ($1,000,000).
(2) General construction, where the annual gross receipts exceed nine million five hundred thousand dollars ($9,500,000).
(3) Special trade construction, where the annual gross receipts exceed five million dollars ($5,000,000).
(4) Retail trade, where the annual gross receipts exceed two million dollars ($2,000,000).
(5) Wholesale trade, where the annual gross receipts exceed
nine million five hundred thousand dollars ($9,500,000).
(6) Services, where the annual gross receipts exceed two million dollars ($2,000,000).
(7) Transportation and warehousing, where the annual gross receipts exceed one million five hundred thousand dollars ($1,500,000).
SEC. 34.
Section 16428.1 of the Government Code is amended to read:16428.1.
The Legislature finds and declares all of the following:(a) Ratepayers and the state’s economy have been harmed by improper and unfair energy market manipulation that has resulted in overcharging for electricity and natural gas. methane.
(b) The purpose of the act adding this section is to ensure that any funds paid to the state as a result of energy litigation are used for the following purposes:
(1) To reimburse state funds
for, or to finance, litigation and investigation expenses.
(2) To reduce ratepayer costs of those utility ratepayers harmed by the actions of the defendants.
(3) To reduce or pay debt service on the bonds issued pursuant to Division 27 (commencing with Section 80000) of the Water Code.
SEC. 35.
Section 16428.15 of the Government Code is amended to read:16428.15.
(a) The Ratepayer Relief Fund is hereby established in the State Treasury. The purpose of the fund is to benefit electricity and(b) Notwithstanding any other law, the Controller may use the moneys in the Ratepayer Relief Fund for loans to the General Fund as provided in Sections 16310 and 16381. However, interest shall be paid on all moneys loaned to the General Fund from the Ratepayer Relief Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Ratepayer Relief Fund was created.
SEC. 36.
Section 16428.2 of the Government Code is amended to read:16428.2.
As used in this article, the following terms have the following meanings:(a) “Fund” means the Ratepayer Relief Fund established in Section 16428.1.
(b) “Energy settlement agreement” means any agreement arising from the energy crisis of 2000–02, where the State of California or a division of the State of California, is a party in a complaint or any action relating to the operation and management of any generation facilities, any sale or purchase or transmission of natural gas, methane, any
sale or purchase or transmission of electricity or other utility or energy goods and services, or a violation of the Federal Power Act (16 U.S.C. Sec. 791a et seq.), state law, or Public Utilities Commission orders or regulations other actions relating to electricity generation, transmission, or distribution, electrical corporations, gas generation, storage, transmission, or distribution, gas corporations, energy generation facilities, or publicly owned utilities.
SEC. 37.
Section 51010.5 of the Government Code is amended to read:51010.5.
As used in this chapter, the following definitions apply:(a) “Pipeline” includes every intrastate pipeline used for the transportation of hazardous liquid substances or highly volatile liquid substances, including a common carrier pipeline, and all piping containing those substances located within a refined products bulk loading facility that is owned by a common carrier and is served by a pipeline of that common carrier, and the common carrier owns and serves by pipeline at least five of these facilities in the state. “Pipeline” does not include the following:
(1) An interstate pipeline subject to Part 195 of Title 49 of the Code of Federal Regulations.
(2) A pipeline for the transportation of a hazardous liquid substance in a gaseous state.
(3) Transportation of petroleum in onshore gathering lines located in rural areas.
(4) A pipeline for the transportation of a hazardous liquid substance offshore located upstream from the outlet flange of each facility on the Outer Continental Shelf where hydrocarbons are produced or where produced hydrocarbons are first separated, dehydrated, or otherwise processed, whichever facility is farther downstream.
(5) Transportation of a hazardous liquid by a flow line.
(6) A pipeline for the transportation of a hazardous liquid substance through an onshore production, refining, or manufacturing facility, including a storage or inplant piping system
associated with that facility.
(7) Transportation of a hazardous liquid substance by vessel, aircraft, tank truck, tank car, or other vehicle or terminal facilities used exclusively to transfer hazardous liquids between those modes of transportation.
(b) “Flow line” means a pipeline that transports hazardous liquid substances from the well head to a treating facility or production storage facility.
(c) “Hydrostatic testing” means the application of internal pressure above the normal or maximum operating pressure to a segment of pipeline, under no-flow conditions for a fixed period of time, utilizing a liquid test medium.
(d) “Local agency” means a city, county, or fire protection district.
(e) “Rural area” means a location that lies outside the limits of any incorporated or unincorporated city or city and county, or other residential or commercial area, such as a subdivision, a business, a shopping center, or a community development.
(f) “Gathering line” means a pipeline eight inches or less in nominal diameter that transports petroleum from a production facility.
(g) “Production facility” means piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of petroleum or associated storage or measurement. To be a production facility under this definition, piping or equipment must be used in the process of extracting petroleum from the ground and transporting it by pipeline.
(h) “Public drinking water well” means a wellhead that provides
drinking water to a public water system as defined in Section 116275 of the Health and Safety Code, that is regulated by the State Department of Public Health and that is subject to Section 116455 of the Health and Safety Code.
(i) “GIS mapping system” means a geographical information system that will collect, store, retrieve, analyze, and display environmental geographical data in a database that is accessible to the public.
(j) “Motor vehicle fuel” includes gasoline, natural gasoline, blends of gasoline and alcohol, or gasoline and oxygenates, and any inflammable liquid, by whatever name the liquid may be known or sold, which that is used or is usable for propelling motor vehicles operated
by the explosion type engine. It does not include kerosene, liquefied petroleum gas, or natural gas
methane in liquid or gaseous form.
(k) “Oxygenate” means an organic compound containing oxygen that has been approved by the United States Environmental Protection Agency as a gasoline additive to meet the requirements for an “oxygenated fuel” pursuant to Section 7545 of Title 42 of the United States Code.
SEC. 38.
Section 53313.5 of the Government Code, as amended by Section 21 of Chapter 258 of the Statutes of 2022, is amended to read:53313.5.
A community facilities district may also finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer or may finance planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property. The facilities need not be physically located within the district. A district(a) Local park, recreation, parkway, and open-space facilities.
(b) Elementary and secondary schoolsites and structures provided that the facilities meet the building area and
cost standards established by the State Allocation Board.
(c) Libraries.
(d) Child care facilities, including costs of insuring the facilities against loss, liability insurance in connection with the operation of the facility, and other insurance costs relating to the operation of the facilities, but excluding all other operational costs. However, the proceeds of bonds issued pursuant to this chapter shall not be used to pay these insurance costs.
(e) The district may also finance the construction or undergrounding of water transmission and distribution facilities, natural gas methane pipeline facilities, telephone lines,
facilities for the transmission or distribution of electrical energy, electricity, and cable television lines to provide access to those services to customers who do not have access to those services or to mitigate existing visual blight. The district may enter into an agreement with a public utility to utilize use those facilities to provide a particular service and for the conveyance of those facilities to the public utility. “Public utility” shall include all utilities, whether public and regulated by the Public Utilities Commission, or municipal. If the facilities are conveyed to the public utility, the agreement shall provide
that the cost or a portion of the cost of the facilities that are the responsibility of the utility shall be refunded by the public utility to the district or improvement area thereof, to the extent that refunds are applicable pursuant to (1) the Public Utilities Code or rules of the Public Utilities Commission, as to utilities regulated by the commission, or (2) other laws regulating public utilities. Any reimbursement made to the district shall be utilized used to reduce or minimize the special tax levied within the district or improvement area, or to construct or acquire additional facilities within the district or improvement area, as specified in the resolution of formation.
(f) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for flood and storm protection services, including, but not limited to, storm drainage and treatment systems and sandstorm protection systems.
(g) The district may also pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of a community facilities district or may pay debt service on that indebtedness. When the amount financed by the district is to pay a tax, fee, charge, or assessment imposed by a public agency other than the one conducting the proceedings, and if the amount provided to the other public agency will not be entirely used to pay off or prepay an assessment lien or special tax obligation pursuant to the property owner’s legal right to do so, the written
consent of the other public agency is required. In addition, tax revenues of a district may be used to make lease or debt service payments on any lease, lease-purchase contract, or certificate of participation used to finance facilities authorized to be financed by the district.
(h) Any other governmental facilities that the legislative body creating the community facilities district is authorized by law to contribute revenue to, or construct, own, or operate. However, the district shall not operate or maintain or, except as otherwise provided in subdivisions (e) and (k), have any ownership interest in any facilities for the transmission or distribution of natural gas,
methane, telephone service, or electrical energy. electricity.
(i) (1) A district may also pay for the following:
(A) Work deemed necessary to bring buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations. Only work certified as necessary to comply with seismic safety standards or regulations by local building officials may be financed. No project involving the dismantling of an existing building and its replacement by a new building, nor the construction of a new or substantially new building may be financed pursuant to this subparagraph. Work on
qualified historical buildings or structures shall be done in accordance with the State Historical Building Code (Part 2.7 (commencing with Section 18950) of Division 13 of the Health and Safety Code).
(B) In addition, within any county or area designated by the President of the United States or by the Governor as a disaster area or for which the Governor has proclaimed the existence of a state of emergency because of earthquake damage, a district may also pay for any work deemed necessary to repair any damage to real property directly or indirectly caused by the occurrence of an earthquake cited in the President’s or the Governor’s designation or proclamation, or by aftershocks associated with that earthquake, including work to reconstruct, repair, shore up, or replace any building damaged or destroyed by the earthquake, and specifically including, but not limited to, work on any building damaged or destroyed in the Loma Prieta earthquake that
occurred on October 17, 1989, or by its aftershocks. Work may be financed pursuant to this subparagraph only on property or buildings identified in a resolution of intention to establish a community facilities district adopted within seven years of the date on which the county or area is designated as a disaster area by the President or by the Governor or on which the Governor proclaims for the area the existence of a state of emergency.
(2) Work on privately owned property, including reconstruction or replacement of privately owned buildings pursuant to subparagraph (B) of paragraph (1), may only be financed by a tax levy if all of the votes cast on the question of levying the tax, vote in favor of levying the tax, or with the prior written consent to the tax of the owners of all property that may be subject to the tax, in that case the prior written consent shall be deemed to constitute a vote in favor of the tax and any associated bond
issue. Any district created to finance seismic safety work on privately owned buildings, including repair, reconstruction, or replacement of privately owned buildings pursuant to this subdivision, shall consist only of lots or parcels that the legislative body finds have buildings that were damaged or destroyed by the earthquake cited pursuant to subparagraph (B) of paragraph (1) or by the aftershocks of that earthquake.
(j) A district may also pay for the following:
(1) Work deemed necessary to repair and abate damage caused to privately owned buildings and structures by soil deterioration. “Soil deterioration” means a chemical reaction by soils that causes structural damage or defects in construction materials including concrete, steel, and ductile or cast iron. Only work certified as necessary by local building officials may be financed. No project involving the dismantling of
an existing building or structure and its replacement by a new building or structure, nor the construction of a new or substantially new building or structure may be financed pursuant to this paragraph.
(2) Work on privately owned buildings and structures pursuant to this subdivision, including reconstruction, repair, and abatement of damage caused by soil deterioration, may only be financed by a tax levy if all of the votes cast on the question of levying the tax vote in favor of levying the tax. Any district created to finance the work on privately owned buildings or structures, including reconstruction, repair, and abatement of damage caused by soil deterioration, shall consist only of lots or parcels on which the legislative body finds that the buildings or structures to be worked on pursuant to this subdivision suffer from soil deterioration.
(k) A district may also finance
the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for the purposes of removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. As used in this subdivision, “remedial action” and “removal” shall have the meaning set forth in Sections 78125 and 78135, respectively, of the Health and Safety Code, and “hazardous substance” shall have the meaning set forth in Section 25281 of the Health and Safety Code.
(l) A district may also finance and refinance the acquisition, installation, and improvement of energy efficiency, water conservation, wildfire safety improvements as defined in Section 5899.4 of the Streets and Highways Code, and renewable energy improvements that are affixed, as specified in Section 660 of the Civil Code, to or on real property and in buildings, whether the real property or
buildings are privately or publicly owned. Energy efficiency, water conservation, wildfire safety improvements as defined in Section 5899.4 of the Streets and Highways Code, and renewable energy improvements financed by a district may only be installed on a privately owned building and on privately owned real property with the prior written consent of the owner or owners of the building or real property. This chapter shall not be used to finance installation of energy efficiency, water conservation, wildfire safety improvements as defined in Section 5899.4 of the Streets and Highways Code, and renewable energy improvements on a privately owned building or on privately owned real property in connection with the initial construction of a residential building unless the initial construction is undertaken by the intended owner or occupant.
(m) Any improvement on private property authorized to be financed by this section shall constitute a “public
facility” for purposes of this chapter and a “public improvement” for purposes of Part 1 (commencing with Section 3100) and Part 2 (commencing with Section 3110) of Division 4.5 of the Streets and Highways Code, whether the improvement is owned by a private entity, if the legislative body has determined that the improvement provides a public benefit, or the improvement is owned by a public agency.
(n) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
SEC. 39.
Section 53313.5 of the Government Code, as amended by Section 22 of Chapter 258 of the Statutes of 2022, is amended to read:53313.5.
A community facilities district may also finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer or may finance planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property. The facilities need not be physically located within the district. A district(a) Local park, recreation, parkway, and open-space facilities.
(b) Elementary and secondary schoolsites and structures provided that the facilities meet the building area and
cost standards established by the State Allocation Board.
(c) Libraries.
(d) Child care facilities, including costs of insuring the facilities against loss, liability insurance in connection with the operation of the facility, and other insurance costs relating to the operation of the facilities, but excluding all other operational costs. However, the proceeds of bonds issued pursuant to this chapter shall not be used to pay these insurance costs.
(e) The district may also finance the construction or undergrounding of water transmission and distribution facilities, natural gas methane pipeline facilities, telephone lines,
facilities for the transmission or distribution of electrical energy, electricity, and cable television lines to provide access to those services to customers who do not have access to those services or to mitigate existing visual blight. The district may enter into an agreement with a public utility to utilize use those facilities to provide a particular service and for the conveyance of those facilities to the public utility. “Public utility” shall include all utilities, whether public and regulated by the Public Utilities Commission, or municipal. If the facilities are conveyed to the public utility, the agreement shall provide
that the cost or a portion of the cost of the facilities that are the responsibility of the utility shall be refunded by the public utility to the district or improvement area thereof, to the extent that refunds are applicable pursuant to (1) the Public Utilities Code or rules of the Public Utilities Commission, as to utilities regulated by the commission, or (2) other laws regulating public utilities. Any reimbursement made to the district shall be utilized used to reduce or minimize the special tax levied within the district or improvement area, or to construct or acquire additional facilities within the district or improvement area, as specified in the resolution of formation.
(f) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for flood and storm protection services, including, but not limited to, storm drainage and treatment systems and sandstorm protection systems.
(g) The district may also pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of a community facilities district or may pay debt service on that indebtedness. When the amount financed by the district is to pay a tax, fee, charge, or assessment imposed by a public agency other than the one conducting the proceedings, and if the amount provided to the other public agency will not be entirely used to pay off or prepay an assessment lien or special tax obligation pursuant to the property owner’s legal right to do so, the written
consent of the other public agency is required. In addition, tax revenues of a district may be used to make lease or debt service payments on any lease, lease-purchase contract, or certificate of participation used to finance facilities authorized to be financed by the district.
(h) Any other governmental facilities that the legislative body creating the community facilities district is authorized by law to contribute revenue to, or construct, own, or operate. However, the district shall not operate or maintain or, except as otherwise provided in subdivisions (e) and (k), have any ownership interest in any facilities for the transmission or distribution of natural gas,
methane, telephone service, or electrical energy. electricity.
(i) (1) A district may also pay for the following:
(A) Work deemed necessary to bring buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations. Only work certified as necessary to comply with seismic safety standards or regulations by local building officials may be financed. No project involving the dismantling of an existing building and its replacement by a new building, nor the construction of a new or substantially new building may be financed pursuant to this subparagraph. Work on
qualified historical buildings or structures shall be done in accordance with the State Historical Building Code (Part 2.7 (commencing with Section 18950) of Division 13 of the Health and Safety Code).
(B) In addition, within any county or area designated by the President of the United States or by the Governor as a disaster area or for which the Governor has proclaimed the existence of a state of emergency because of earthquake damage, a district may also pay for any work deemed necessary to repair any damage to real property directly or indirectly caused by the occurrence of an earthquake cited in the President’s or the Governor’s designation or proclamation, or by aftershocks associated with that earthquake, including work to reconstruct, repair, shore up, or replace any building damaged or destroyed by the earthquake, and specifically including, but not limited to, work on any building damaged or destroyed in the Loma Prieta earthquake that
occurred on October 17, 1989, or by its aftershocks. Work may be financed pursuant to this subparagraph only on property or buildings identified in a resolution of intention to establish a community facilities district adopted within seven years of the date on which the county or area is designated as a disaster area by the President or by the Governor or on which the Governor proclaims for the area the existence of a state of emergency.
(2) Work on privately owned property, including reconstruction or replacement of privately owned buildings pursuant to subparagraph (B) of paragraph (1), may only be financed by a tax levy if all of the votes cast on the question of levying the tax, vote in favor of levying the tax, or with the prior written consent to the tax of the owners of all property that may be subject to the tax, in that case the prior written consent shall be deemed to constitute a vote in favor of the tax and any associated bond
issue. Any district created to finance seismic safety work on privately owned buildings, including repair, reconstruction, or replacement of privately owned buildings pursuant to this subdivision, shall consist only of lots or parcels that the legislative body finds have buildings that were damaged or destroyed by the earthquake cited pursuant to subparagraph (B) of paragraph (1) or by the aftershocks of that earthquake.
(j) A district may also pay for the following:
(1) Work deemed necessary to repair and abate damage caused to privately owned buildings and structures by soil deterioration. “Soil deterioration” means a chemical reaction by soils that causes structural damage or defects in construction materials including concrete, steel, and ductile or cast iron. Only work certified as necessary by local building officials may be financed. No project involving the dismantling of
an existing building or structure and its replacement by a new building or structure, nor the construction of a new or substantially new building or structure may be financed pursuant to this paragraph.
(2) Work on privately owned buildings and structures pursuant to this subdivision, including reconstruction, repair, and abatement of damage caused by soil deterioration, may only be financed by a tax levy if all of the votes cast on the question of levying the tax vote in favor of levying the tax. Any district created to finance the work on privately owned buildings or structures, including reconstruction, repair, and abatement of damage caused by soil deterioration, shall consist only of lots or parcels on which the legislative body finds that the buildings or structures to be worked on pursuant to this subdivision suffer from soil deterioration.
(k) A district may also finance
the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for the purposes of removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. As used in this subdivision, “remedial action” and “removal” shall have the meaning set forth in Sections 78125 and 78135, respectively, of the Health and Safety Code, and “hazardous substance” shall have the meaning set forth in Section 25281 of the Health and Safety Code.
(l) A district may also finance and refinance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements that are affixed, as specified in Section 660 of the Civil Code, to or on real property and in buildings, whether the real property or buildings are privately or publicly owned. Energy efficiency, water conservation, and
renewable energy improvements financed by a district may only be installed on a privately owned building and on privately owned real property with the prior written consent of the owner or owners of the building or real property. This chapter shall not be used to finance installation of energy efficiency, water conservation, and renewable energy improvements on a privately owned building or on privately owned real property in connection with the initial construction of a residential building unless the initial construction is undertaken by the intended owner or occupant.
(m) Any improvement on private property authorized to be financed by this section shall constitute a “public facility” for purposes of this chapter and a “public improvement” for purposes of Part 1 (commencing with Section 3100) and Part 2 (commencing with Section 3110) of Division 4.5 of the Streets and Highways Code, whether the improvement is owned by a private entity, if
the legislative body has determined that the improvement provides a public benefit, or the improvement is owned by a public agency.
(n) This section shall become operative on January 1, 2029.
SEC. 40.
Section 54957 of the Government Code is amended to read:54957.
(a) This chapter shall not be construed to prevent the legislative body of a local agency from holding closed sessions with the Governor, Attorney General, district attorney, agency counsel, sheriff, or chief of police, or their respective deputies, or a security consultant or a security operations manager, on matters posing a threat to the security of public buildings, a threat to the security of essential public services, including water, drinking water, wastewater treatment,(b) (1) Subject to paragraph (2), this chapter shall not be construed to prevent the legislative body of a local agency from holding closed sessions during a regular or special meeting to consider the appointment, employment, evaluation of performance, discipline, or dismissal of a public employee or to hear complaints or charges brought against the employee by another person or employee unless the employee requests a public session.
(2) As a condition to holding a closed session on specific complaints or charges brought against an employee by another person or employee, the employee shall be given written notice of his or her
their right to have the complaints or charges heard in an open session rather than a closed session, which notice shall be delivered to the employee personally or by mail at least 24 hours before the time for holding the session. If notice is not given, any disciplinary or other action taken by the legislative body against the employee based on the specific complaints or charges in the closed session shall be null and void.
(3) The legislative body also may exclude from the public or closed meeting, during the examination of a witness, any or all other witnesses in the matter being investigated by the legislative body.
(4) For the purposes of this subdivision, the term “employee” shall include an officer or an independent contractor who functions as an officer or an employee but shall not include any elected official, member of a legislative
body or other independent contractors. This subdivision shall not limit local officials’ ability to hold closed session meetings pursuant to Sections 1461, 32106, and 32155 of the Health and Safety Code or Sections 37606 and 37624.3 of the Government Code. Closed sessions held pursuant to this subdivision shall not include discussion or action on proposed compensation except for a reduction of compensation that results from the imposition of discipline.
SEC. 41.
Section 61105 of the Government Code is amended to read:61105.
(a) The Legislature finds and declares that the unique circumstances that exist in certain communities justify the enactment of special statutes for specific districts. In enacting this section, the Legislature intends to provide specific districts with special statutory powers to provide special services and facilities that are not available to other districts.(b) (1) The Los Osos Community Services District may borrow money from public or private lenders and lend those funds to property owners within the district to pay for the costs of decommissioning septic systems and constructing lateral connections on private property to facilitate the connection of those properties to the district’s wastewater treatment system. The district shall lend
money for this purpose at rates not to exceed its cost of borrowing and the district’s cost of making the loans. The district may require that the borrower pay the district’s reasonable attorney’s fees and administrative costs in the event that the district is required to take legal action to enforce the provisions of the contract or note securing the loan. The district may elect to have the debt payments or any delinquency collected on the tax roll pursuant to Section 61116. To secure the loan as a lien on real property, the district shall follow the procedures for the creation of special tax liens in Section 53328.3 of this code and Section 3114.5 of the Streets and Highways Code.
(2) (A) (i) Except as otherwise provided in this paragraph, on and after January 1, 2007, the Los Osos Community Services District shall
not undertake any efforts to design, construct, and operate a community wastewater collection and treatment system within, or for the benefit of, the district. The district shall resume those powers on the date specified in any resolution adopted pursuant to subdivision (l) of Section 25825.5.
(ii) Upon resuming the powers pursuant to clause (i), the Los Osos Community Services District may continue the program to offset assessments or charges for very low or low-income households with funding sources, including, but not limited to, grants, adopted pursuant to subdivision (g) of Section 25825.5. If the county has not implemented that program, the Los Osos Community Services District may adopt a program that complies with subdivision (g) of Section 25825.5 to offset assessments or charges for very low or low-income households. The Los Osos Community Services District shall not include in an assessment or charge an amount to cover the costs to
the county in carrying out the offset program.
(B) Nothing in this paragraph shall affect the district’s power to do any of the following:
(i) Operate wastewater collection and treatment facilities within the district that the district was operating on January 1, 2006.
(ii) Provide facilities and services in the territory that is within the district, but outside the prohibition zone.
(iii) Provide facilities and services, other than wastewater collection and treatment, within the prohibition zone.
(C) Promptly upon the adoption of a resolution by the Board of Supervisors of the County of San Luis Obispo requesting this action pursuant to subdivision (i) of Section 25825.5, the district
shall convey to the County of San Luis Obispo all retained rights-of-way, licenses, other interests in real property, funds, and other personal property previously acquired by the district in connection with construction projects for which the district awarded contracts in 2005.
(c) The Heritage Ranch Community Services District may acquire, construct, improve, maintain, and operate petroleum storage tanks and related facilities for its own use, and sell those petroleum products to the district’s property owners, residents, and visitors. The authority granted by this subdivision shall expire when a private person or entity is ready, willing, and able to acquire, construct, improve, maintain, and operate petroleum storage tanks and related facilities, and sell those petroleum products to the district and its property owners, residents, and visitors. At that time, the district shall either (1) diligently transfer its title, ownership,
maintenance, control, and operation of those petroleum tanks and related facilities at a fair market value to that private person or entity, or (2) lease the operation of those petroleum tanks and related facilities at a fair market value to that private person or entity.
(d) The Wallace Community Services District may acquire, own, maintain, control, or operate the underground gas distribution pipeline system located and to be located within Wallace Lake Estates for the purpose of allowing a privately owned provider of liquefied petroleum gas to use the underground gas distribution system pursuant to a mutual agreement between the private provider and the district or the district’s predecessor in interest. The district shall require and receive payment from the private provider for the use of that system. The authority granted by this subdivision shall expire when the Pacific Gas and Electric Company is ready, willing, and able to provide natural gas
methane service to the residents of Wallace Lake Estates. At that time, the district shall diligently transfer its title, ownership, maintenance, control, and operation of the system to the Pacific Gas and Electric Company.
(e) The Cameron Park Community Services District, the El Dorado Hills Community Services District, the Golden Hills Community Services District, the Mountain House Community Services District, the Rancho Murieta Community Services District, the Salton Community Services District, the Stallion Springs Community Services District, and the Tenaja Meadows Community Services District, which enforced covenants, conditions, and restrictions prior to before January 1, 2006, pursuant to former Section
61601.7 and former Section 61601.10, may continue to exercise the powers set forth in former Section 61601.7 and former Section 61601.10.
(f) (1) The Bel Marin Keys Community Services District may enforce all or part of the covenants, conditions, and restrictions for a tract, and assume the duties of the architectural control committee, to the extent that a tract’s covenants, conditions, and restrictions authorize an architectural control committee. Before the district can enforce covenants, conditions, and restrictions, and assume the duties of an architectural control committee, for a tract, the board of directors shall:
(A) Receive a written request from the board of directors of the tract’s property owners’ association or homeowners’ association, with a petition signed by not less than a majority of the property owners of the parcels within the tracts
covered by those associations, requesting the district to enforce the covenants, conditions, and restrictions for that tract and assume the duties of the architectural control committee for that tract, if an architectural control committee is called for in the covenants, conditions, and restrictions.
(B) Conduct a public hearing on the question, after giving mailed notice to each affected property owner of the date, time, and location of the meeting.
(C) Submit an application to the local agency formation commission pursuant to Section 56824.10, specifying the exact nature and scope of the intended services to be provided by the district.
(D) Receive the approval of the local agency formation commission, pursuant to Article 1.5 (commencing with Section 56824.10) of Chapter 5 of Part 3 of Division 3 of Title 5, which
may include completion terms deemed appropriate by the commission, to enforce covenants, conditions, and restrictions for a tract, and to assume the duties of the architectural control committee for that tract.
(E) Adopt an ordinance assuming the power to enforce covenants, conditions, and restrictions for a tract, and to assume the duties of the architectural control committee for that tract, provided that the ordinance requires:
(i) The property owners within the tract to finance the enforcement of the covenants, conditions, and restrictions, and the duties of the architectural control committee.
(ii) The tract’s property owners’ association or homeowners’ association to indemnify the district for the costs of any litigation, settlements, injuries, damages, or judgments arising from enforcement of the covenants,
conditions, and restrictions, and the district’s duties as the architectural control committee.
(2) The Bel Marin Keys Community Services District may, by ordinance, divest itself of the power undertaken under this subdivision.
(g) The Bear Valley Community Services District, the Bell Canyon Community Services District, the Cameron Estates Community Services District, the Lake Sherwood Community Services District, the Saddle Creek Community Services District, the Wallace Community Services District, and the Santa Rita Hills Community Services District may, for roads owned by the district and that are not formally dedicated to or kept open for use by the public for the purpose of vehicular travel, by ordinance, limit access to and the use of those roads to the landowners and residents of that district.
(h) Notwithstanding any other provision of law, the transfer of the assets of the Stonehouse Mutual Water Company, including its lands, easements, rights, and obligations to act as sole agent of the stockholders in exercising the riparian rights of the stockholders, and rights relating to the ownership, operation, and maintenance of those facilities serving the customers of the company, to the Hidden Valley Lake Community Services District is not a transfer subject to taxes imposed by Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code.
(i) The El Dorado Hills Community Services District and the Rancho Murieta Community Services District may each acquire, construct, improve, maintain, and operate television receiving, translating, or distribution facilities, provide television and television-related services to the
district and its residents, or authorize the construction and operation of a cable television system to serve the district and its residents by franchise or license. In authorizing the construction and operation of a cable television system by franchise or license, the district shall have the same powers as a city or county under Section 53066.
(j) The Mountain House Community Services District may provide facilities for television and telecommunications systems, including the installation of wires, cables, conduits, fiber optic lines, terminal panels, service space, and appurtenances required to provide television, telecommunication, and data transfer services to the district and its residents, and provide facilities for a cable television system, including the installation of wires, cables, conduits, and appurtenances to service the district and its residents by franchise or license, except that the district may
shall not provide or install any facilities pursuant to this subdivision unless one or more cable franchises or licenses have been awarded under Section 53066 and the franchised or licensed cable television and telecommunications services providers are permitted equal access to the utility trenches, conduits, service spaces, easements, utility poles, and rights-of-way in the district necessary to construct their facilities concurrently with the construction of the district’s facilities. The district shall not have the authority to operate television, cable, or telecommunications systems, except as provided in Section 61100. The district shall have the same powers as a city or county under Section 53066 in granting a franchise or license for the operation of a cable television system.
(k) (1) The Lake Arrowhead Community Services District may enforce all or part of the covenants,
conditions, and restrictions for a tract, and assume the duties of the Arrowhead Woods Architectural Committee, to the extent that a tract’s covenants, conditions, and restrictions are legally enforceable by the Arrowhead Woods Architectural Committee. Before the district can enforce covenants, conditions, and restrictions, and assume the duties of the Arrowhead Woods Architectural Committee for a tract, the board of directors shall do all of the following:
(A) Receive a written request from the board of directors of the Arrowhead Woods Architectural Committee, with a petition signed by not less than a majority of the property owners of the parcels within the tracts covered by the Arrowhead Woods Architectural Committee, requesting the district to enforce the covenants, conditions, and restrictions for those tracts and assume the duties of the Arrowhead Woods Architectural Committee for those tracts.
(B) Conduct a public hearing on the question, after giving mailed notice to each affected property owner of the date, time, and location of the meeting.
(C) Submit an application to the local agency formation commission pursuant to Section 56824.10, specifying the exact nature and scope of the intended services to be provided by the district.
(D) Receive the approval of the local agency formation commission, pursuant to Article 1.5 (commencing with Section 56824.10) of Chapter 5 of Part 3 of Division 3 of Title 5, which may include completion terms deemed appropriate by the commission, to enforce covenants, conditions, and restrictions for a tract, and to assume the duties of the Arrowhead Woods Architectural Committee for those tracts.
(E) Adopt an ordinance
assuming the power to enforce covenants, conditions, and restrictions for a tract, and to assume the duties of the Arrowhead Woods Architectural Committee for those tracts, provided that the ordinance requires both of the following:
(i) The property owners within the tracts to finance, in compliance with other state and local law, the enforcement of the covenants, conditions, and restrictions, and the duties of the Arrowhead Woods Architectural Committee through fees, regular or special assessments that may be enforced either pursuant to the authority of the Arrowhead Woods Architectural Committee under its founding documents or applicable law, or pursuant to the authority of the Lake Arrowhead Community Services District, and using any of the procedures set forth in Section 61122 in order to accomplish the purposes authorized herein.
(ii) The Arrowhead Woods Architectural
Committee to indemnify the district for the costs of any litigation, settlements, injuries, damages, or judgments arising from enforcement of the covenants, conditions, and restrictions, imposition of any fees, assessments, or other financing mechanism authorized in clause (i), and the district’s duties on behalf of the Arrowhead Woods Architectural Committee.
(2) The Lake Arrowhead Community Services District may use the procedures in Section 61115 for the enforcement of any fee, charge, or assessment authorized herein.
(3) The Lake Arrowhead Community Services District may, by ordinance, divest itself of the power undertaken under this subdivision.
(4) The Lake Arrowhead Community Services District shall not enforce any covenants, conditions, or restrictions for a tract, or assume the duties of the Arrowhead Woods
Architectural Committee, until all unlawfully restrictive covenants are removed from the covenants, conditions, and restrictions of the properties in those tracts pursuant to the process in Section 12956.2.
SEC. 42.
Section 63010 of the Government Code is amended to read:63010.
For purposes of this division, the following words and terms shall have the following meanings unless the context clearly indicates or requires another or different meaning or intent:(a) “Act” means the Bergeson-Peace Infrastructure and Economic Development Bank Act.
(b) “Bank” means the California Infrastructure and Economic Development Bank.
(c) “Board” or “bank board” means the Board of Directors of the California Infrastructure and Economic Development Bank.
(d) “Bond purchase agreement” means a contractual agreement executed between the bank and a sponsor, or a special purpose trust
authorized by the bank or a sponsor, or both, whereby the bank or special purpose trust authorized by the bank agrees to purchase bonds of the sponsor for retention or sale.
(e) “Bonds” means bonds, including structured, senior, and subordinated bonds or other securities; loans; notes, including bond, revenue, tax, or grant anticipation notes; commercial paper; floating rate and variable maturity securities; and any other evidences of indebtedness or ownership, including certificates of participation or beneficial interest, asset backed certificates, or lease-purchase or installment purchase agreements, whether taxable or excludable from gross income for federal income taxation purposes.
(f) “Cost,” as applied to a project or portion thereof financed under this division, means all or any part of the cost of construction, renovation, and acquisition of all lands, structures, real
or personal property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery, equipment, and financing charges; interest prior to, before, during, and for a period after completion of construction, renovation, or acquisition, as determined by the bank; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and the cost of architectural, engineering, financial and legal services, plans, specifications, estimates, administrative expenses, and other expenses necessary or
incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project, and transition costs in the case of an electrical corporation.
(g) “Economic development facilities” means real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, goods movement, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing, unless the housing meets the requirements of Article 5 (commencing with Section 63043).
(h) “Electrical corporation” has the meaning set forth in Section 218 of
the Public Utilities Code.
(i) “Executive director” means the Executive Director of the California Infrastructure and Economic Development Bank appointed pursuant to Section 63021.
(j) “Financial assistance” in connection with a project, includes, but is not limited to, any combination of grants, loans, the proceeds of bonds issued by the bank or special purpose trust, insurance, guarantees or other credit enhancements or liquidity facilities, and contributions of money, property, labor, or other things of value, as may be approved by resolution of the board or the sponsor, or both; the purchase or retention of bank bonds, the bonds of a sponsor for their retention or for sale by the bank, or the issuance of bank bonds or the bonds of a special purpose trust used to fund the cost of a project for which a sponsor is directly or indirectly liable, including, but not limited to,
bonds, the security for which is provided in whole or in part pursuant to the powers granted by Section 63025.1; bonds for which the bank has provided a guarantee or enhancement, including, but not limited to, the purchase of the subordinated bonds of the sponsor, the subordinated bonds of a special purpose trust, or the retention of the subordinated bonds of the bank pursuant to Chapter 4 (commencing with Section 63060); or any other type of assistance deemed appropriate by the bank or the sponsor, except that no direct loans shall be made to nonpublic entities other than in connection with the issuance of rate reduction bonds pursuant to a financing order or in connection with a financing for an economic development facility.
For purposes of this subdivision, “grant” does not include grants made by the bank except when acting as an agent or intermediary for the distribution or packaging of financing available from federal, private, or other public sources.
(k) “Financing order” has the meaning set forth in Section 840 of the Public Utilities Code.
(l) “Guarantee trust fund” means the California Infrastructure Guarantee Trust Fund.
(m) “Infrastructure bank fund” means the California Infrastructure and Economic Development Bank Fund.
(n) “Loan agreement” means a contractual agreement executed between the bank or a special purpose trust and a sponsor that provides that the bank or special purpose trust will loan funds to the sponsor and that the sponsor will repay the principal and pay the interest and redemption premium, if any, on the loan.
(o) “Participating party” means any person, company, corporation, association, state, or municipal
governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project. However, in the case of a project relating to the financing of transition costs or the acquisition of transition property, or both, on the request of an electrical corporation, or in connection with financing for an economic development facility, or for the financing of insurance claims, the participating party shall be deemed to be the same entity as the sponsor for the financing.
(p) “Project” means designing, acquiring, planning, permitting, entitling, constructing, improving, extending, restoring, financing, and generally developing public development facilities or economic development facilities within the state or financing transition costs or the
acquisition of transition property, or both, upon approval of a financing order by the Public Utilities Commission, as provided in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q) “Public development facilities” means real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof, excluding any housing, unless the housing meets the requirements of Article 5.5 (commencing with Section 63047.1), that are directly related to providing the following:
(1) “City streets” including any street, avenue, boulevard, road, parkway, drive, or other way that is any of the following:
(A) An existing municipal roadway.
(B) Is shown upon a plat
approved pursuant to law and includes the land between the street lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(2) “County highways” including any county highway as defined in Section 25 of the Streets and Highways Code, that includes the land between the highway lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(3) “Drainage, water supply, and flood control” including, but not limited to, ditches, canals, levees, pumps, dams, conduits, pipes, storm sewers, and dikes necessary to keep or direct water away from people, equipment, buildings, and other protected areas as may be established by lawful authority, as well as the acquisition, improvement, maintenance, and management of flood plain areas and all equipment used in the maintenance and operation of the foregoing.
(4) “Educational facilities” including libraries, childcare facilities, including, but not limited to, daycare facilities, and employment training facilities.
(5) “Environmental mitigation measures” including required construction or modification of public infrastructure and purchase and installation of pollution control and noise abatement equipment.
(6) “Parks and recreational facilities” including local parks, recreational property and equipment, parkways, and property.
(7) “Port facilities” including airports, inland ports, landports, waterports, railports, docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith, that transport goods or persons.
(8) “Power and communications” including facilities for the transmission or distribution of electrical energy, natural gas, electricity, methane, and telephone and telecommunications service.
(9) “Public transit” including air and rail transport, airports, guideways, vehicles, rights-of-way, passenger stations, maintenance and storage yards, and related structures, including public parking facilities, and equipment used to provide or enhance transportation by bus, rail, ferry, or other conveyance, either publicly or privately owned, that provides to the public general or special service on a regular and continuing basis.
(10) “Sewage collection and treatment” including pipes, pumps, and conduits that collect wastewater from residential, manufacturing, and commercial establishments, the equipment, structures, and facilities used in treating wastewater to reduce or eliminate impurities or contaminants, and the facilities used in disposing of, or transporting, remaining sludge, as well as all equipment used in the maintenance and operation of the foregoing.
(11) “Solid waste collection and disposal” including vehicles, vehicle-compatible waste receptacles, transfer stations, recycling centers, sanitary landfills, and waste conversion facilities necessary to remove solid waste, except that which is hazardous as defined by law, from its point of origin.
(12) “Water treatment and distribution” including facilities in which water is purified and otherwise treated to meet residential, manufacturing, or commercial purposes and the conduits, pipes, and pumps that transport it to places of use.
(13) “Defense conversion” including, but not limited to, facilities necessary for successfully converting military bases consistent with an adopted base reuse plan.
(14) “Public safety facilities” including, but not limited
to, police stations, fire stations, court buildings, jails, juvenile halls, and juvenile detention facilities.
(15) “State highways” including any state highway as described in Chapter 2 (commencing with Section 230) of Division 1 of the Streets and Highways Code, and the related components necessary for safe operation of the highway.
(16) (A) “Military infrastructure,” including, but not limited to, facilities on or near a military installation, that enhance the military operations and mission of one or more military installations in this state. To be eligible for funding, the project shall be endorsed by the Office of Planning and Research.
(B) For purposes of this subdivision, “military installation” means any facility under the jurisdiction of the Department of Defense, as defined in
paragraph (1) of subsection (e) of Section 2687 of Title 10 of the United States Code.
(17) “Goods movement-related infrastructure” including port facilities, roads, rail, and other facilities and projects that move goods, energy, and information.
(18) “Housing-related infrastructure” including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(r) “Rate reduction bonds” has the meaning set forth in Section 840 of the Public Utilities Code.
(s) “Revenues” means all receipts, purchase payments, loan repayments, lease payments, and all other
income or receipts derived by the bank or a sponsor from the sale, lease, or other financing arrangement undertaken by the bank, a sponsor, or a participating party, including, but not limited to, all receipts from a bond purchase agreement, and any income or revenue derived from the investment of any money in any fund or account of the bank or a sponsor and any receipts derived from transition property. Revenues shall not include moneys in the General Fund of the state.
(t) “Special purpose trust” means a trust, partnership, limited partnership, association, corporation, nonprofit corporation, or other entity authorized under the laws of the state to serve as an instrumentality of the state to accomplish public purposes and authorized by the bank to acquire, by purchase or otherwise, for retention or sale, the bonds of a sponsor or of the bank made or entered into pursuant to this division and to issue special purpose trust bonds or other
obligations secured by these bonds or other sources of public or private revenues. Special purpose trust also means any entity authorized by the bank to acquire transition property or to issue rate reduction bonds, or both, subject to the approvals by the bank and powers of the bank as are provided by the bank in its resolution authorizing the entity to issue rate reduction bonds.
(u) “Sponsor” means any subdivision of the state or local government including departments, agencies, commissions, cities, counties, nonprofit corporations formed on behalf of a sponsor, special districts, assessment districts, and joint powers authorities within the state or any combination of these subdivisions that makes an application to the bank for financial assistance in connection with a project in a manner prescribed by the bank. This definition shall not be construed to require that an applicant have an ownership interest in the project. In addition, an
electrical corporation shall be deemed to be the sponsor as well as the participating party for any project relating to the financing of transition costs and the acquisition of transition property on the request of the electrical corporation and any person, company, corporation, partnership, firm, or other entity or group engaged in business or operation within the state that applies for financing of any economic development facility, shall be deemed to be the sponsor as well as the participating party for the project relating to the financing of that economic development facility.
(v) “State” means the State of California.
(w) “Transition costs” has the meaning set forth in Section 840 of the Public Utilities Code.
(x) “Transition property” has the meaning set forth in Section 840 of the Public Utilities
Code.
SEC. 43.
Section 65912.113 of the Government Code is amended to read:65912.113.
A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.114 unless the development proposal meets all of the following objective development standards:(a) The development shall be a multifamily housing development project.
(b) The residential density for the development will meet or exceed the applicable density deemed appropriate to accommodate housing for lower income households in that jurisdiction as specified in paragraph (3) of subdivision (c) of Section 65583.2.
(c) (1) The development proponent shall complete a phase I environmental assessment, as defined in Section
78090 of the Health and Safety Code.
(2) If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(A) If a release of a hazardous substance is found to exist on the site, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(B) If a potential for exposure to significant hazards from surrounding properties or activities
is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(d) None of the housing on the site is located within 500 feet of a freeway, as defined in Section 332 of the Vehicle Code.
(e) None of the housing on the site is located within 3,200 feet of a facility that actively extracts or refines oil or natural gas. methane.
(f) The development will meet the following objective zoning standards, objective subdivision standards, and objective design review standards:
(1) The applicable objective standards shall be those for the zone that allows residential use at a greater density between the following:
(A) The existing zoning designation for the parcel if existing zoning allows multifamily residential use.
(B) The zoning designation for the closest parcel that allows residential use at a density that meets the requirements of subdivision (b).
(2) The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this article.
(g) For purposes of this section, “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective
judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances, subject to the following:
(1) A development shall be deemed consistent with the objective zoning standards related to housing density, as applicable, if the density proposed is compliant with the maximum density allowed within that land use designation, notwithstanding any specified maximum unit allocation that may result in fewer units of housing being permitted.
(2) In the event that objective zoning,
general plan, subdivision, or design review standards are mutually inconsistent, a development shall be deemed consistent with the objective zoning and subdivision standards pursuant to this section if the development is consistent with the standards set forth in the general plan.
SEC. 44.
Section 65912.123 of the Government Code is amended to read:65912.123.
A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.124 unless the development project meets all of the following objective development standards:(a) The development shall be a multifamily housing development project.
(b) The residential density for the development shall be determined as follows:
(1) In a metropolitan jurisdiction, as determined pursuant to subdivisions (d) and (e) of Section 65583.2, the residential density for the development shall meet or exceed the greater of the following:
(A) The residential density
allowed on the parcel by the local government.
(B) For sites of less than one acre in size, 30 units per acre.
(C) For sites of one acre in size or greater located on a commercial corridor of less than 100 feet in width, 40 units per acre.
(D) For sites of one acre in size or greater located on a commercial corridor of 100 feet in width or greater, 60 units per acre.
(E) Notwithstanding subparagraph (B), (C), or (D), for sites within one-half mile of a major transit stop, 80 units per acre.
(2) In a jurisdiction that is not a metropolitan jurisdiction, as determined pursuant to subdivisions (d) and (e) of Section 65583.2, the residential density for the development shall meet or exceed the
greater of the following:
(A) The residential density allowed on the parcel by the local government.
(B) For sites of less than one acre in size, 20 units per acre.
(C) For sites of one acre in size or greater located on a commercial corridor of less than 100 feet in width, 30 units per acre.
(D) For sites of one acre in size or greater located on a commercial corridor of 100 feet in width or greater, 50 units per acre.
(E) Notwithstanding subparagraph (B), (C), or (D), for sites within one-half mile of a major transit stop, 70 units per acre.
(c) The height limit applicable to the housing development shall be the greater of
the following:
(1) The height allowed on the parcel by the local government.
(2) For sites on a commercial corridor of less than 100 feet in width, 35 feet.
(3) For sites on a commercial corridor of 100 feet in width or greater, 45 feet.
(4) Notwithstanding paragraphs (2) and (3), 65 feet for sites that meet all of the following criteria:
(A) They are within one-half mile of a major transit stop.
(B) They are within a city with a population of greater than 100,000.
(C) They are not within a coastal zone, as defined in Division 20 (commencing with Section 30000)
of the Public Resources Code.
(d) The property meets the following setback standards:
(1) For the portion of the property that fronts a commercial corridor, the following shall occur:
(A) No setbacks shall be required.
(B) All parking must be set back at least 25 feet.
(C) On the ground floor, a building or buildings must abut within 10 feet of the property line for at least 80 percent of the frontage.
(2) For the portion of the property that fronts a side street, a building or buildings must abut within 10 feet of the property line for at least 60 percent of the frontage.
(3) For the portion of the property that abuts an adjoining property that also abuts the same commercial corridor as the property, no setbacks are required unless the adjoining property contains a residential use that was constructed prior to before the enactment of this chapter, in which case the requirements of subparagraph (A) of paragraph (4) apply.
(4) For the portion of the property line that does not abut a commercial corridor, a side street, or an adjoining property that also abuts the same commercial corridor as the property, the following shall occur:
(A) Along property lines that abut a property that contains a residential use, the following shall occur:
(i) The ground floor of the development project shall be set back at 10 feet. The amount required to be set back may be decreased by the local government.
(ii) Starting with the second floor of the property, each subsequent floor of the development project shall be stepped back in an amount equal to seven feet multiplied by the floor number. For purposes of this paragraph, the ground floor counts as the first floor. The amount required to be stepped back may be decreased by the local government.
(B) Along property lines that abut a property that does not contain a residential use, the development shall be set back 15 feet. The amount required to be stepped back may be decreased by the local government.
(e) No parking shall be required, except that this
article shall not reduce, eliminate, or preclude the enforcement of any requirement imposed on a new multifamily residential or nonresidential development to provide bicycle parking, electric vehicle supply equipment installed parking spaces, or parking spaces that are accessible to persons with disabilities that would have otherwise applied to the development if this article did not apply.
(f) (1) The development proponent shall complete a phase I environmental assessment, as defined in Section 78090 of the Health and Safety Code.
(2) If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the
potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(A) If a release of a hazardous substance is found to exist on the site, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(B) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(g) None of the housing on the site is located within 500 feet of a freeway, as defined in Section 332 of the Vehicle Code.
(h) None of the
housing on the site is located within 3,200 feet of a facility that actively extracts or refines oil or natural gas.
methane.
(i) (1) The development proponent shall provide written notice of the pending application to each commercial tenant on the parcel when the application is submitted.
(2) The development proponent shall provide relocation assistance to each eligible commercial tenant located on the site as follows:
(A) For a commercial tenant operating on the site for at least one year but less than five years, the relocation assistance shall be equivalent to six months’ rent.
(B) For a commercial tenant operating on the site for at least 5 years but less than 10 years, the relocation assistance shall be equivalent to nine months’ rent.
(C) For a commercial tenant operating on the site for at least 10 years but less than 15 years, the relocation assistance shall be equivalent to 12 months’ rent.
(D) For a commercial tenant operating on the site for at least 15 years but less than 20 years, the relocation assistance shall be equivalent to 15 months’ rent.
(E) For a commercial tenant operating on the site for at least 20 years, the relocation assistance shall be equivalent to 18 months’ rent.
(3) The relocation assistance shall be provided to an eligible commercial tenant upon expiration of the lease of that commercial tenant.
(4) For purposes of this subdivision, a commercial tenant is eligible for relocation assistance if the commercial tenant meets all of the following
criteria:
(A) The commercial tenant is an independently owned and operated business with its principal office located in the county in which the property on the site that is leased by the commercial tenant is located.
(B) The commercial tenant’s lease expired and was not renewed by the property owner.
(C) The commercial tenant’s lease expired within the three years following the development proponent’s submission of the application for a housing development pursuant to this article.
(D) The commercial tenant employs 20 or fewer employees and has annual average gross receipts under one million dollars ($1,000,000) for the three-taxable-year period ending with the taxable year that precedes the expiration of their lease.
(E) The commercial tenant is still in operation on the site at the time of the expiration of its lease.
(5) Notwithstanding paragraph (4), for purposes of this subdivision, a commercial tenant is ineligible for relocation assistance if the commercial tenant meets both of the following criteria:
(A) The commercial tenant entered into a lease on the site after the development proponent’s submission of the application for a housing development pursuant to this article.
(B) The commercial tenant had not previously entered into a lease on the site.
(6) (A) The commercial tenant shall utilize
use the funds provided by the development proponent to relocate the business or for costs of a new business.
(B) Notwithstanding paragraph (2), if the commercial tenant elects not to use the funds provided as required by subparagraph (A), the development proponent shall provide only assistance equal to three months’ rent, regardless of the duration of the commercial tenant’s lease.
(7) For purposes of this subdivision, monthly rent is equal to one-twelfth of the total amount of rent paid by the commercial tenant in the last 12 months.
(j) Other objective zoning standards, objective subdivision standards, and objective design review standards as follows:
(1) The applicable objective standards shall be those for the
closest zone in the city, county, or city and county that allows multifamily residential use at the residential density determined pursuant to subdivision (b). If no zone exists that allows the residential density determined pursuant to subdivision (b), the applicable objective standards shall be those for the zone that allows the greatest density within the city, county, or city and county.
(2) The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this article.
(3) The applicable objective standards may include a requirement that up to one-half of the ground floor of the housing development project be dedicated to retail use.
(4) For purposes of this section, “objective zoning standards,” “objective subdivision
standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. In the event that objective zoning, general plan, subdivision, or design review standards are mutually inconsistent, a development shall be deemed consistent with the objective zoning and subdivision standards pursuant to this subdivision if the development is consistent with the standards set forth in the general plan.
SEC. 45.
Section 65913.16 of the Government Code is amended to read:65913.16.
(a) This section shall be known, and may be cited, as the Affordable Housing on Faith and Higher Education Lands Act of 2023.(b) For purposes of this section:
(1) “Applicant” means a qualified developer who submits an application for streamlined approval pursuant to this section.
(2) “Development proponent” means a developer that submits a housing development project application to a local government under the streamlined, ministerial review process pursuant to this chapter.
(3) “Health care expenditures” include contributions pursuant to Section 501(c) or (d) or 401(a)
of the Internal Revenue Code and payments toward “medical care” as defined in Section 213(d)(1) of the Internal Revenue Code.
(4) “Heavy industrial use” means a use that is a source, other than a Title V source, as defined by Section 39053.5 of the Health and Safety Code, that is subject to permitting by a district, as defined in Section 39025 of the Health and Safety Code, pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code or the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.). A use where the only source permitted by a district is an emergency backup generator, and the source is in compliance with permitted emissions and operating limits, is not a heavy industrial use.
(5) “Housing development project” has the same meaning as defined in Section 65589.5.
(6) “Independent
institution of higher education” has the same meaning as defined in Section 66010 of the Education Code.
(7) “Light industrial use” means a use that is not subject to permitting by a district, as defined in Section 39025 of the Health and Safety Code.
(8) “Local government” means a city, including a charter city, county, including a charter county, or city and county, including a charter city and county.
(9) “Qualified developer” means any of the following:
(A) A local public entity, as defined in Section 50079 of the Health and Safety Code.
(B) (i) A developer that is a nonprofit corporation, a limited partnership in which a managing general partner is a nonprofit
corporation, or a limited liability company in which a managing member is a nonprofit corporation.
(ii) The developer, at the time of submission of an application for development pursuant to this section, owns property or manages housing units located on property that is exempt from taxation pursuant to the welfare exemption established in subdivision (a) of Section 214 of the Revenue and Taxation Code.
(C) A developer that contracts with a nonprofit corporation that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families with financing in the form of zero interest rate loans.
(D) A developer that the religious institution or independent institution of education, as defined in this section, has contracted with before to construct
housing or other improvements to real property.
(10) “Religious institution” means an institution owned, controlled, and operated and maintained by a bona fide church, religious denomination, or religious organization composed of multidenominational members of the same well-recognized religion, lawfully operating as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110), or as a corporation sole pursuant to Part 6 (commencing with Section 10000), of Division 2 of Title 1 of the Corporations Code.
(11) “Title V industrial use” means a use that is a Title V source, as defined in Section 39053.5 of the Health and Safety Code.
(12) “Use by right” means a development project that satisfies both of the following conditions:
(A) The development project does not require a conditional use permit, planned unit development permit, or other discretionary local government review.
(B) The development project is not a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c) Notwithstanding any inconsistent provision of a local government’s general plan, specific plan, zoning ordinance, or regulation, upon the request of an applicant, a housing development project shall be a use by right, if all of the following criteria are satisfied:
(1) The development is located on land owned on or before January 1, 2024, by an independent institution of higher education or a religious institution, including ownership through an affiliated or associated nonprofit public benefit corporation organized
pursuant to the Nonprofit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(2) The development is located on a parcel that satisfies the requirements specified in subparagraphs (A) and (B) of paragraph (2) of subdivision (a) of Section 65913.4.
(3) The development is located on a parcel that satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4.
(4) The development is located on a parcel that satisfies the requirements specified in paragraph (7) of subdivision (a) of Section 65913.4.
(5) (A) The development is not adjoined to any site where more than one-third of the square footage on the site is
dedicated to light industrial use. For purposes of this subdivision, parcels separated by only a street or highway shall be considered to be adjoined.
(B) For purposes of subparagraph (A), a property is “dedicated to light industrial use” if all of the following requirements are met:
(i) The square footage is currently being put to a light industrial use.
(ii) The most recently permitted use of the square footage is a light industrial use.
(iii) The latest version of the local government’s general plan, adopted before January 1, 2022, designates the property for light industrial use.
(6) The housing units on the development site are not located within 1,200 feet of a site that is either of
the following:
(A) A site that is currently a heavy industrial use.
(B) A site where the most recent permitted use was a heavy industrial use.
(7) Except as provided in paragraph (8), the housing units on the development site are not located within 1,600 feet of a site that is either of the following:
(A) A site that is currently a Title V industrial use.
(B) A site where the most recent permitted use was a Title V industrial use.
(8) For a site where multifamily housing is not an existing permitted use, the housing units on the development site are not located within 3,200 feet of a facility that actively extracts or refines
oil or natural gas. methane.
(9) One hundred percent of the development project’s total units, exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the total units in the development may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code, and 5 percent of the units may be for staff of the independent institution of higher education or religious institution that owns the land. Units in the development shall be offered at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or at affordable rent, as set in an amount consistent with the rent limits established by the
California Tax Credit Allocation Committee. The rent or sales price for a moderate-income unit shall be affordable and shall not exceed 30 percent of income for a moderate-income household or homebuyer for a unit of similar size and bedroom count in the same ZIP Code in the city, county, or city and county in which the housing development is located. The applicant shall provide the city, county, or city and county with evidence to establish that the units meet the requirements of this paragraph. All units, exclusive of any manager unit or units, shall be subject to a recorded deed restriction as provided in this paragraph for at least the following periods of time:
(A) Fifty-five years for units that are rented unless a local ordinance or the terms of a federal, state, or local grant, tax credit, or other project financing requires, as a condition of the development of residential units, that the development include a certain percentage of
units that are affordable to, and occupied by, low-income, lower income, very low income, or extremely low income households for a term that exceeds 55 years for rental housing units.
(B) Forty-five years for units that are owner-occupied or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915.
(10) The development project complies with all objective development standards of the city or county that are not in conflict with this section.
(11) If the housing development project requires the demolition of existing residential dwelling units, or is located on a site where residential dwelling units have been demolished within the last five years, the applicant shall comply with subdivision (d) of Section
66300.
(12) The applicant certifies to the local government that either of the following is true for the housing development project, as applicable:
(A) The entirety of the development project is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(B) A development that contains more than 10 units and is not in its entirety a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code and approved by a local government pursuant to Article 2 (commencing with Section 65912.110) of, or Article 3 (commencing with Section 65912.120) of, Chapter 4.1 shall be subject to all of the following:
(i) All construction workers employed in the execution of
the development shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs provided by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(ii) The development proponent shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work for those portions of the development that are not a public work.
(iii) All contractors and subcontractors for those portions of the development that are not a public work shall comply with both of the following:
(I) Pay to all construction workers employed in the
execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in the programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(II) Maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. This subclause does not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subclause, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(13) (A) The development proponent completes a Phase I environmental assessment, as defined in Section 25319.1 of the Health and Safety Code, and a Phase II environmental assessment, as defined in subdivision (o) of Section 25403 of the Health and Safety Code, if warranted.
(B) If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 25319.5 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(i) If a release of hazardous substance is found to exist on the site, the release shall
be removed, or any significant effect of the release shall be mitigated to a level of insignificance in compliance with state and federal requirements.
(ii) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(14) If the development is within 500 feet of a freeway, regularly occupied areas of the building shall provide air filtration media for outside and return air that provide a minimum efficiency reporting value (MERV) of 13.
(15) For a vacant site, the site does not contain tribal cultural resources, as defined in Section 21074 of the Public Resources Code, that could be affected by the development that were
found pursuant to a consultation as described in Section 21080.3.1 of the Public Resources Code, and the effects of which cannot be mitigated pursuant to the process described in Section 21080.3.2 of the Public Resources Code.
(d) (1) The obligation of the contractors and subcontractors to pay prevailing wages pursuant to this section may be enforced by any of the following:
(A) The Labor Commissioner, through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, that may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development.
(B) An underpaid worker through an administrative complaint or civil action.
(C) A joint labor-management
committee through a civil action pursuant to Section 1771.2 of the Labor Code.
(2) If a civil wage and penalty assessment is issued pursuant to this section, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(3) This subdivision does not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subdivision, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract
Code.
(e) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing does not apply to those portions of a development that are not a public work if otherwise provided in a bona fide collective bargaining agreement covering the worker.
(f) The requirement of this section to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.
(g) In addition to the requirements of Section 65912.130, a development of 50 or more housing units approved by a local government pursuant to Article 2 (commencing with Section 65912.110) of, or Article 3 (commencing with Section
65912.120) of, Chapter 4.1 shall meet all of the following labor standards:
(1) The development proponent shall require in contracts with construction contractors and shall certify to the local government that each contractor of any tier who will employ construction craft employees or will let subcontracts for at least 1,000 hours shall satisfy the requirements in paragraphs (2) and (3). A construction contractor is deemed in compliance with paragraphs (2) and (3) if it is signatory to a valid collective bargaining agreement that requires use of registered apprentices and expenditures on health care for employees and dependents.
(2) A contractor with construction craft employees shall either participate in an apprenticeship program approved by the Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code, or request the dispatch of apprentices from a
state-approved apprenticeship program under the terms and conditions set forth in Section 1777.5 of the Labor Code. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subdivision.
(3) Each contractor with construction craft employees shall make health care expenditures for each employee in an amount per hour worked on the development equivalent to at least the hourly pro rata cost of a Covered California Platinum-level plan for two adults 40 years of age and two dependents 0 to 14 years of age for the Covered California rating area in which the development is located. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this paragraph. Qualifying expenditures shall be credited toward compliance with prevailing wage payment requirements set forth in Section 65912.130.
(4) (A) The development proponent shall provide to the local government, on a monthly basis while its construction contracts on the development are being performed, a report demonstrating compliance with paragraphs (2) and (3). The report shall be considered public records under the California Public Records Act (Division 10 (commending with Section 7920.000) of Title 1), and shall be open to public inspection.
(B) A development proponent that fails to provide the monthly report shall be subject to a civil penalty for each month for which the report has not been provided, in the amount of 10 percent of the dollar value of construction work performed by that contractor on the development in the month in question, up to a maximum of ten thousand dollars ($10,000). Any contractor or subcontractor that fails to comply with paragraph (2) or (3) shall be subject to a
civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of paragraph (2) or (3).
(C) Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the procedures for issuance of civil wage and penalty assessments specified in Section 1741 of the Labor Code, and may be reviewed pursuant to Section 1742 of the Labor Code. Penalties shall be deposited in the State Public Works Enforcement Fund established pursuant to Section 1771.3 of the Labor Code.
(5) Each construction contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code. Each construction contractor shall submit payroll records directly to the Labor Commissioner at least monthly in a format prescribed by the Labor Commissioner in accordance with subparagraph (A) of paragraph (3) of subdivision (a) of
Section 1771.4 of the Labor Code. The records shall include a statement of fringe benefits. Upon request by a joint labor-management cooperation committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided pursuant to subdivision (e) of Section 1776 of the Labor Code.
(6) All construction contractors shall report any change in apprenticeship program participation or health care expenditures to the local government within 10 business days, and shall reflect those changes on the monthly report. The reports shall be considered public records pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000 of Title 1)) and shall be open to public inspection.
(7) A joint labor-management cooperation committee established pursuant to the federal Labor Management Cooperation Act of
1978 (29 U.S.C. Sec. 175a) shall have standing to sue a construction contractor for failure to make health care expenditures pursuant to paragraph (3) in accordance with Section 218.7 or 218.8 of the Labor Code.
(h) Notwithstanding any other provision of this section, a development project that is eligible for approval as a use by right pursuant to this section may include the following ancillary uses, provided that those uses are limited to the ground floor of the development:
(1) In a single-family residential zone, ancillary uses shall be limited to childcare centers and facilities operated by community-based organizations for the provision of recreational, social, or educational services for use by the residents of the development and members of the local community in which the development is located.
(2) In all
other zones, the development may include commercial uses that are permitted without a conditional use permit or planned unit development permit.
(i) Notwithstanding any other provision of this section, a development project that is eligible for approval as a use by right pursuant to this section includes any religious institutional use, or any use that was previously existing and legally permitted by the city or county on the site, if all of the following criteria are met:
(1) The total square footage of nonresidential space on the site does not exceed the amount previously existing or permitted in a conditional use permit.
(2) The total parking requirement for nonresidential space on the site does not exceed the lesser of the amount existing or of the amount required by a conditional use permit.
(3) The new uses abide by the same operational conditions as contained in the previous conditional use permit.
(j) A housing development project that qualifies as a use by right pursuant to subdivision (b) shall be allowed the following density, as applicable:
(1) (A) If the development project is located in a zone that allows residential uses, including in single-family residential zones, the development project shall be allowed a density of the applicable density deemed appropriate to accommodate housing for lower income households identified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 and a height of one story above the maximum height otherwise applicable to the parcel.
(B) If the local government
allows for greater residential density on that parcel, or greater residential density or building heights on an adjoining parcel, than permitted in subparagraph (A), the greater density or building height shall apply.
(C) A housing development project that is located in a zone that allows residential uses, including in single-family residential zones, shall be eligible for a density bonus, incentives, or concessions, or waivers or reductions of development standards and parking ratios, pursuant to Section 65915.
(2) (A) If the development project is located in a zone that does not allow residential uses, the development project shall be allowed a density of 40 units per acre and a height of one story above the maximum height otherwise applicable to the parcel.
(B) If the local government allows
for greater residential density or building heights on that parcel, or an adjoining parcel, than permitted in subparagraph (A), the greater density or building height shall apply. A development project shall not use an incentive, waiver, or concession to increase the height of the development to greater than the height authorized under this subparagraph.
(C) Except as provided in subparagraph (B), a housing development project that is located in a zone that does not allow residential uses shall be eligible for a density bonus, incentives, or concessions, or waivers or reductions of development standards and parking ratios, pursuant to Section 65915.
(k) (1) Except as provided in paragraph (2), the proposed development shall provide off-street parking of up to one space per unit, unless a state law or local ordinance provides for a lower standard of parking,
in which case the law or ordinance shall apply.
(2) A local government shall not impose a parking requirement if either of the following is true:
(A) The parcel is located within one-half mile walking distance of public transit, either a high-quality transit corridor or a major transit stop as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(B) There is a car share vehicle located within one block of the parcel.
(l) (1) If the local government determines that the proposed development is in conflict with any of the objective planning standards specified in this section, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an
explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A) Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B) Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(2) If the local government fails to provide the required documentation pursuant to paragraph (1), the development shall be deemed to satisfy the required objective planning standards.
(3) For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable
person to conclude that the development is consistent with the objective planning standards.
(4) The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a “project” as defined in Section 21065 of the Public Resources Code.
(5) Design review of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the
development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(A) Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(B) Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(6) The local government shall ensure that the project satisfies the requirements specified in subdivision (d) of Section 66300, regardless of whether the development is within or not within an affected
city or within or not within an affected county.
(7) If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(8) A local government’s approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(9) Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(10) A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(11) A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(12) A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(m) This section shall not prevent a development from also qualifying as a housing
development project entitled to the protections of Section 65589.5.
(n) The Legislature finds and declares that ensuring residential development at greater density on land owned by independent institutions of higher education and religious institutions is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(o) The provisions of paragraph (3) of subdivision (g) concerning health care expenditures are distinct and severable from the remaining provisions of this section. However, all other provisions of subdivision (g) are material and integral parts of this section and are not severable. If any provision of subdivision (g), exclusive of those included in paragraph (3), is held invalid, the entire section shall be invalid and
shall not be given effect.
(p) This section shall remain in effect only until January 1, 2036, and as of that date is repealed.
SEC. 46.
Section 65950.5 of the Government Code is amended to read:65950.5.
(a) If an applicant for a development project for(b) The private entities or persons temporarily employed by the public agency may, pursuant to a contract or agreement
with the public agency, perform any of the functions necessary to comply with the requirements of Article 3 (commencing with Section 65940), this article, or local ordinances adopted pursuant to those articles, except those functions reserved by those articles or local ordinances to the legislative body of a local agency.
(c) A public agency may charge the applicant a fee that does not exceed the estimated reasonable cost of providing the service pursuant to this section. A local agency shall comply with Section 66014, Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020).
SEC. 47.
Section 65963.2 of the Government Code is amended to read:65963.2.
(a) For purposes of this section, the following terms have the following meanings:(1) “Commission” means the Public Utilities Commission.
(2) “Pipeline integrity management program” means a program verified by the commission to be in compliance with state or federal regulations that includes an activity undertaken by a gas corporation that is a public utility to enhance the safety of a natural gas methane pipeline as required by the commission, or the federal Pipeline and Hazardous Materials Safety
Administration in Subpart O of Part 192 of Title 49 of the Code of Federal Regulations and 74 Federal Register 63906 (December 4, 2009).
(3) “Pipeline project” means a pipeline inspection, remediation, removal, or replacement, including any valve, flange, meter, or other piece of equipment directly attached to the pipeline, in accordance with a pipeline integrity management program.
(b) A city, county, or city and county shall act on an application by a gas corporation that is a public utility for a ministerial pipeline project permit within a public street or highway or any other public right-of-way within 10 business days of determining that an application for the pipeline project is complete.
(c) If the city, county, or city and county cannot act on the application within 10 business days of determining that an
application for the pipeline project is complete pursuant to subdivision (b), the city, county, or city and county shall provide the gas corporation with a written timeline indicating the time, which shall occur as soon as possible, by which the city, county, or city and county will act on the application.
SEC. 48.
Section 70357 of the Government Code is amended to read:70357.
(a) The cost of utilities shall be included in the county facilities payment by calculating the average consumption of utilities for the fiscal years 1995–96 to 1999–2000, inclusive, multiplying the consumption averages by the 1999–2000 rates, and multiplying the value by the increase in the inflation index specified in Section 70355 from January 2000, to the month of the date of transfer of responsibility for the court facilities from the county to the state, inclusive. The consumption rates for 1999–2000 shall be the average of the rates for each month of that fiscal year.(b) If the county states in its county facilities payment calculation under Section 70363 that either utility consumption amounts or rates are not
reasonably available for any court facility for any or all of the 1995–96 to 1999–2000, inclusive, fiscal years after a good faith effort to obtain those consumption amounts or rates, then the cost of utilities for that facility shall be included in the county facilities payment by calculating the five-year average of the utility costs incurred in connection with the operation of the building for the 1995–96 to 1999-2000, inclusive, fiscal years. This amount shall be calculated by multiplying the yearly utility costs for each court facility for each of the five fiscal years from 1995–96 to 1999–2000, inclusive, by the change in the inflation index specified in Section 70355 from January of that fiscal year to the month of the date of transfer of responsibility for the court facility from the county to the state, inclusive, and then averaging the five inflation-adjusted yearly values.
(c) If the county states in its county facilities payment
calculation under Section 70363 that the utility cost information described in subdivisions (a) and (b) is not reasonably available for any court facilities for any or all of the fiscal years 1995–96 to 1999–2000, inclusive, after a good faith effort to obtain that information, then the cost of utilities for those facilities shall be calculated using all relevant information available to the county and to the Administrative Office of the Courts.
(d) For purposes of any good faith statement made pursuant to subdivision (b) or (c), the county shall include a detailed description of all activities it undertook to obtain the information and the results of each activity.
(e) If the county implemented a special improvement to increase energy efficiency during the 1995–96 fiscal year or thereafter, and that special improvement resulted in measurable and ongoing net cost savings, then the
county may include a description of the special improvement and the resulting cost savings as part of its county facilities payment calculation under Section 70363. The amount of any reduction in the county facilities payment calculation shall be limited to the demonstrable ongoing cost savings to the state directly resulting from the special improvement only to the extent not already reflected in the cost or consumption data used to determine utilities costs. The county shall document or demonstrate the savings and the fact that the savings are not already reflected.
(f) As used in this section, “utility costs” include, but are not limited to, natural gas, methane, heating oil, electricity, water, sewage, and garbage. Utility costs shall be included
without regard to whether payment of the costs was made by the county, the court, or another entity except that the amount of specific utility costs may shall not be included in the county facilities payment if all of the following conditions are satisfied:
(1) A lease expressly provides that the utilities are to be paid by the lessor.
(2) There is no payment by the lessee for the utilities, except as part of the lease payment.
(3) The lease payment is included in the county facilities payment.
SEC. 49.
Section 294 of the Harbors and Navigation Code is amended to read:294.
(a) Any person responsible for(1) Any offshore well or undersea site at which there is exploration for or extraction or recovery of natural gas methane or oil.
(2) Any offshore facility, oil rig, or oil platform at which there is exploration for, or extraction, recovery, processing, or storage of, natural gas methane or oil.
(3) Any vessel offshore in which natural gas,
methane, oil, or drilling waste is transported, processed, or stored.
(4) Any pipeline located offshore in which natural gas, methane, oil, or drilling waste is transported.
(b) A responsible person is not liable to an injured party under this section for any of the following:
(1) Damages, other than costs of removal incurred by the state or a local government, caused solely by any act of war, hostilities, civil war, or insurrection or by an unanticipated grave natural disaster or other act of God of an exceptional, inevitable, and irresistible character, which
that could not have been prevented or avoided by the exercise of due care or foresight.
(2) Damages caused solely by the negligence or intentional malfeasance of that injured party.
(3) Damages caused solely by the criminal act of a third party other than the defendant or an agent or employee of the defendant.
(4) Natural seepage not caused by a responsible party.
(5) Discharge or leaking of oil or natural gas methane from a private pleasure boat or vessel.
(6) Damages which
that arise out of, or are caused by, a discharge which that is authorized by a state or federal permit.
(c) Upon motion and sufficient showing by a person deemed to be responsible under this section, the court shall join to the action any other person who may be responsible under this section.
(d) In determining whether a party is a responsible person under this section, the court shall consider the results of any chemical or other scientific tests conducted to determine whether oil or other substances produced, discharged, or controlled by the defendant matches the oil or other substance which
that caused the damage to the injured party. The defendant shall have the burden of producing the results of tests of samples of the substance which that caused the injury and of substances for which the defendant is responsible, unless it is not possible to conduct the tests because of unavailability of samples to test or because the substance is not one for which reliable tests have been developed. At the request of any party, any other party shall provide samples of oil or other substances within its possession or control for testing.
(e) The court may award reasonable costs of the suit, attorneys’ fees, and the costs of any necessary expert witnesses, to any prevailing plaintiff. The court may award reasonable
costs of the suit and attorneys’ fees to any prevailing defendant if the court finds that the plaintiff commenced or prosecuted the suit under this section in bad faith or solely for purposes of harassing the defendant.
(f) This section does not prohibit any person from bringing an action for damages caused by natural gas, methane, oil, or drilling waste, or by exploration, under any other provision or principle of law, including, but not limited to, common law. However, damages shall not be awarded pursuant to this section to an injured party for any loss or injury for which the party is or has been awarded damages under any other provision or principle of law. Subdivision
(b) does not create any defense not otherwise available regarding any action brought under any other provision or principle of law, including, but not limited to, common law.
(g) As used in this section, the following definitions apply:
(1) “Damages” are damages for any of the following:
(A) Injury or harm to real or personal property.
(B) Business loss, including loss of income.
(C) Costs of cleanup, removal, or treatment of natural gas, methane, oil, or drilling waste.
(D) Cost of wildlife rehabilitation.
(E) When the injured party is the state, or a city, county, or district, in addition to any injury described in subparagraphs (A) to (D), inclusive, damages include all of the following:
(i) Injury to natural resources or wildlife, and loss of use and enjoyment of public beaches and other public resources or facilities, within the jurisdiction of the state, city, county, or district.
(ii) Costs incurred to monitor the cleanup of the natural gas, methane, oil, or drilling waste.
(iii) Loss of taxes.
(iv) Costs to assess damages to natural resources, wildlife, or habitat.
(2) “Injured party” means any person who suffers damages from natural gas, methane, oil, or drilling waste, which that is discharged or leaks into marine waters, or from offshore exploration. The state, or a city, county, or district, may be an injured party.
(3) “Natural gas” “Methane,”
formerly referred to as natural gas for purposes of this section, includes natural gas, methane, liquified natural gas, methane, and natural gas methane
byproducts. “Natural gas” “Methane” does not include natural gas
methane carried in a vessel for use as fuel in that vessel.
(4) “Exploration” means boring and soil sampling.
(5) “Oil” and “drilling wastes” include, but are not limited to, petroleum, refined or processed petroleum, petroleum byproducts, oil sludge, oil refuse, oil mixed with wastes, and chemicals or other materials used in the exploration, recovery, or processing of oil. “Oil” does not include oil carried in a vessel for use as fuel in that vessel.
(6) “Person” means an individual, proprietorship, firm, partnership, joint venture, corporation, limited liability company, or other business entity, or an association or other organization.
(7) (A) “Responsible person” means any of the following:
(A)
(i) The owner or transporter of natural gas, methane, oil, or drilling waste which that causes an injury covered by this section.
(B)
(ii) The owner, operator, or lessee of, or person who charters by demise, any offshore well, undersea site, facility, oil rig, oil platform, vessel, or pipeline which that is the source of natural gas, methane, oil, drilling waste, or is the source or location of exploration which that
causes an injury covered by this section.
“Responsible
(B) “Responsible party” does not include the United States, the state, or any public agency.
(h) Liability under this section shall be joint and several. However, this section does not bar a cause of action that a responsible party has or would have, by reason of subrogation or otherwise, against any person.
(i) Section 3291 of the Civil Code applies to actions brought under this section.
(j) This section does not apply to claims for damages for personal injury or wrongful death, and does not limit the right of any person to bring an action for personal injury or wrongful death under any provision or theory of law.
SEC. 50.
Section 18029.1 of the Health and Safety Code is amended to read:18029.1.
(a) Notwithstanding Section 18029, a person may, without filing an application for an alteration or conversion required by this chapter, alter or convert, or cause to be altered or converted, the structural, fire safety, plumbing, heat-producing, or electrical systems and installations or equipment of a manufactured home or mobilehome in order to extend a gas line or electrical feeder line, or both, from a utility-owned service line to the electrical subpanel or gas inlet of the manufactured home or mobilehome only for the purpose of a(b) Notwithstanding Section 18029, if, at the time that natural gas methane or electric electrical service is connected to a manufactured home or mobilehome as part of a natural gas
methane
or electric
electrical service utility upgrade, or both, within a mobilehome park that is subject to or consistent with the requirements of Public Utilities Commission Decision 14-03-021 (March 13, 2014), a defect in the manufactured home or mobilehome relating to the heat-producing or electrical systems or installations or equipment is found, the heat-producing or electrical systems or installations or equipment may be repaired or replaced without filing an application for an alteration or conversion required by this chapter if the repair or replacement is necessary to correct the defect, is made promptly, and is approved by the department.
(c) The department shall inspect any alteration or conversion described in subdivision (a) or (b) to ensure that any health and safety standards set forth in this part or Part 2.1 (commencing with Section 18200), or any rules and regulations adopted pursuant to those parts, that
are consistent with the mission set out in Public Utilities Commission Decision 14-03-021 (March 13, 2014) are met.
SEC. 51.
Section 19881 of the Health and Safety Code is amended to read:19881.
(a)(b) Notwithstanding subdivision (a), natural-gas-fueled
methane-fueled unvented decorative gas logs and fireplaces may be sold if the Department of Housing and Community Development and the State Department of Health Services approve of their use, and all of the following are satisfied:
(1) The Department of Housing and Community Development and the State Department of Health Services consider and develop recommended standards for their use. The cost of developing these standards may shall not exceed one hundred forty-five thousand dollars ($145,000).
(2) Natural-gas-fueled Methane-fueled
unvented decorative gas logs and fireplaces meet the standards developed in accordance with paragraph (1) by the Department of Housing and Community Development and the State Department of Health Services.
(3) The California Building Standards Commission adopts the standards developed in accordance with paragraph (1) and pursuant to Section 18930.
(4) Natural-gas-fueled Methane-fueled unvented decorative gas logs and fireplaces are listed by an agency approved by the Department of Housing and Community Development.
(c) Installation of natural-gas-fueled
methane-fueled unvented decorative gas logs and fireplaces sold under standards developed pursuant to subdivision (b) shall be in accordance with the California Building Standards Code.
SEC. 52.
Section 25144 of the Health and Safety Code is amended to read:25144.
(a) For purposes of this section, the following terms have the following meaning:(1) “Oil” means crude oil, or any fraction thereof, that is liquid at 60 degrees Fahrenheit and 14.7 pounds per square inch absolute pressure. “Oil” does not include any of the following, unless it is exempt from regulation under paragraph (1) of subdivision (g) of Section 279.10 of, or paragraph (5) of subdivision (g) of Section 279.10 of, Part 279 of Title 40 of the Code of Federal Regulations:
(A) Spent lubricating fluids that have been removed from an engine crankcase, transmission, gearbox, or differential of an automobile, bus, truck, vessel, heavy equipment, or machinery
powered by an internal combustion engine.
(B) Spent industrial oils, including compressor, turbine, and bearing oil, hydraulic oil, metal-working oil, refrigeration oil, and railroad drainings.
(2) “Oil-bearing materials” means any liquid or semisolid material containing oil, partially refined petroleum products, or petroleum products. “Oil-bearing materials” do not include either of the following:
(A) Soil from remediation projects.
(B) Contaminated groundwater that is generated at, or originating from the operation, maintenance, or cleanup of, service stations, as defined in Section 13650 of the Business and Professions Code.
(3) “Oil recovery operations” means the physical
separation of oil from oil-bearing materials by means of gravity separation, centrifugation, filter pressing, or other dewatering processes, with or without the addition of heat, chemical flocculants, air, or natural gas methane to enhance separation.
(4) “Petroleum refinery” means an establishment that has the Standard Industrial Classification Code 2911 and that is not subject to the permit requirements for the recycling of used oil imposed pursuant to Article 9 (commencing with Section 25200).
(5) “Subsidiary” means a corporate entity engaged in the exploration, production, transportation, refining, marketing, or distribution of crude oil or petroleum products.
(b) (1) Except as provided in paragraph (2), a biological process on the property of the producer treating oil, its products, and water, that meets the definition of a non-RCRA waste, and that produces an effluent that is continuously discharged to navigable waters in compliance with a permit issued pursuant to Section 402 of the Federal Water Pollution Control Act (33 U.S.C. Sec. 1342), is exempt from this chapter.
(2) Residues produced in the treatment process and subsequently removed that conform to any criterion for the identification of a hazardous waste adopted pursuant to Section 25141 are not exempt from this chapter.
(c) To the extent consistent with the applicable provisions of the federal act, units, including associated piping, that are part of a system used for the recovery of oil
from oil-bearing materials, and the associated storage of oil-bearing materials and the recovered oil, are exempt from this chapter, if all of the following conditions are met:
(1) The oil recovery operations are conducted at a petroleum refinery, or at another facility owned or operated by the corporate entity that owns or operates the refinery, or a corporate parent or subsidiary of the corporate entity.
(2) The oil-bearing materials are generated at the refinery or at another facility owned or operated by the corporate entity that owns or operates the refinery, or a corporate parent or subsidiary, including a sister subsidiary, of the corporate entity, or are generated in the course of oil or gas exploration or production operations conducted by an unrelated entity and placed in a common pipeline.
(3) The
recovered oil is inserted into petroleum refinery process units to produce fuel or other refined petroleum products. This paragraph does not allow the direct blending, into final petroleum products, of oil-bearing materials or recovered oil that contain constituents that render these materials hazardous under the regulations adopted pursuant to Sections 25140 and 25141, other than those for which the material is being recycled.
(4) The recovered oil is not stored in a surface impoundment or accumulated speculatively at the refinery or at an offsite facility.
(5) Any residual materials removed from a unit that is exempt under this subdivision are managed in accordance with all other applicable laws.
(6) The oil-bearing materials would be excluded from classification as a waste pursuant to, or would otherwise meet
the requirements for an exemption under, Section 25143.2, except that the following provisions do not apply to those oil-bearing materials:
(A) The prohibitions against prior reclamation in paragraphs (1), (2), and (3) of subdivision (b) of Section 25143.2.
(B) Subparagraph (C) of paragraph (2) of subdivision (c) of Section 25143.2.
(C) Paragraph (3) of subdivision (e) of Section 25143.2.
(D) Sections 25143.9 and 25143.10.
(E) The exceptions for wastewater containing more than 75 parts per million of total petroleum hydrocarbons, as provided by subparagraph (A) of paragraph (5) of, and subparagraph (A) of paragraph (6) of, subdivision (d) of Section
25143.2.
SEC. 53.
Section 25299.97 of the Health and Safety Code is amended to read:25299.97.
(a) For the purposes of this article, the following definitions shall apply:(1) “Public drinking water well” means a wellhead that provides drinking water to a public water system, as that term is defined in Section 116275, that is regulated by the State Water Resources Control Board and that is subject to Section 116455.
(2) “MTBE” means methyl tertiary-butyl ether.
(3) “GIS mapping system” means a geographic information system that collects, stores, retrieves, analyzes, and displays environmental geographic data in a data base
database that is accessible to the public.
(4) “Motor vehicle fuel” includes gasoline, natural gasoline, blends of gasoline and alcohol or gasoline and oxygenates, and any inflammable liquid, by whatever name the liquid may be known or sold, that is used or usable for propelling motor vehicles operated by the explosion type engine. It does not include kerosine, liquefied petroleum gas, or natural gas, methane, in liquid or gaseous form.
(5) “Oxygenated motor vehicle fuel” is motor vehicle fuel, as defined in paragraph (4), that meets the federal definition for “Oxygenated fuel” in Section 7545(m) of Title 42 of the United States Code.
(6) “Oxygenate” means an organic compound containing oxygen that has been approved by the United States Environmental Protection Agency as a gasoline additive to meet the requirements for an “oxygenated fuel” pursuant to Section 7545 of Title 42 of the United States Code.
(b) The State Water Resources Control Board shall upgrade the data base database created by Section 25296.35. This upgrade shall include the establishment of a statewide GIS mapping system as described in this section only upon an appropriation by the Legislature for this purpose.
(c) (1) For purposes of subdivision (b), the board shall
create a GIS Mapping and Data Management Advisory Committee. The committee shall give the board advice on location standards, protocols, metadata, and the appropriate data to expand the data base database to create a cost-effective GIS mapping system that will provide the appropriate information to allow agencies to better protect public drinking water wells and, if feasible, nearby aquifers that are reasonably expected to be used as drinking water, from contamination by motor vehicle fuel from underground storage tanks and intrastate and interstate pipelines that are regulated by the State Fire Marshal pursuant to the California Pipeline Safety Act of 1981, Chapter 5.5 (commencing with Section 51010.5) of Part 1 of Division 1 of Title 5 of the Government Code.
(2) The advisory committee shall include, at a minimum, members from appropriate state and local agencies, affected industry and business, the water agencies that provide drinking water in Santa Monica, the water agencies that provide drinking water in the Santa Clara Valley, nonprofit environmental groups dedicated to the conservation and preservation of natural resources, and underground storage tank owners.
(d) (1) The board shall create two pilot projects, the Santa Monica Groundwater Pilot Project and the Santa Clara Valley Groundwater Pilot Project, which shall terminate on July 1, 1999.
(2) The board shall create the pilot projects with the advice of the advisory committee so as to expedite and prioritize the upgrading of the data base
database for those regions of the state where groundwater provides, or would be called on in an emergency to provide, a significant portion of the region’s drinking water.
(3) The board shall use the pilot projects to define and assess the parameters of the data base, database, identify data needs, develop opportunities to electronically link data bases databases and electronic submission of information, offer access to the public via the Internet, streamline existing processes, and work out the details for data management and a GIS mapping
system as described in this article.
(4) The pilot projects shall study appropriate notification to public water systems and response times.
(e) To upgrade the data base database as required by this section, the board, in consultation with the advisory committee, shall do all of the following:
(1) Coordinate with the Department of Water Resources and the State Department of Public Health to obtain the location of existing drinking water wells and appropriate water resource and quality data to meet the requirements of this article.
(2) Coordinate with local agencies
authorized to implement this chapter to obtain the location of all underground storage tanks that store motor vehicle fuel that are within 1,000 feet of a public drinking water well.
(3) Coordinate with local agencies authorized to implement this chapter to add the location of all known releases of motor vehicle fuel from underground storage tanks that are within 1,000 feet of a drinking water well.
(4) Coordinate with the State Fire Marshal to add the location and leak history of all pipelines or segments of pipelines that transport motor vehicle fuel and that are regulated by the State Fire Marshal pursuant to Chapter 5.5 (commencing with Section 51010) of Part 1 of Division 1 of Title 5 of the Government Code that are within 1,000 feet of an existing public drinking water well.
(f) The board may expend up to four
hundred thousand dollars ($400,000) from the Underground Storage Tank Cleanup Fund for the purposes set forth in Section 25299.36 to fund the GIS mapping system projects referred to in this section.
SEC. 54.
Section 25421 of the Health and Safety Code is amended to read:25421.
(a) On or before May 15, 2013, all of the following shall be completed:(1) The office, in consultation with the board, the department, CalRecycle, and the California Environmental Protection Agency, shall compile a list of constituents of concern that could pose risks to human health and that are found in biogas at concentrations that significantly exceed the concentrations of those constituents in natural gas. methane. The office, in consultation with the board, the department, CalRecycle, and the California Environmental Protection Agency, shall update this list at least
every five years.
(2) The office shall determine health protective levels for the list of constituents of concern identified pursuant to paragraph (1). In determining those health protective levels, the office shall consider potential health impacts and risks, including, but not limited to, health impacts and risks to utility workers and gas end users. The office shall update these levels at least every five years.
(3) The board shall identify realistic exposure scenarios and, in consultation with the office, shall identify the health risks associated with the exposure scenarios for the constituents of concern identified by the office pursuant to paragraph (1). The board shall update the exposure scenarios, and, in consultation with the office, the health risks associated with the exposure scenarios, at least every five years.
(4) Upon completion of the responsibilities required pursuant to paragraphs (1) through (3), the board, in consultation with the office, the department, CalRecycle, and the California Environmental Protection Agency shall determine the appropriate concentrations of constituents of concern. In determining those concentrations, the board shall use the health protective levels identified pursuant to paragraph (2) and the exposure scenarios identified pursuant to paragraph (3). The concentrations shall be updated at least every five years by the board in consultation with the office, the department, CalRecycle, and the California Environmental Protection Agency.
(5) The board, in consultation with the office, the department, CalRecycle, and the California Environmental Protection Agency, shall identify reasonable and prudent monitoring, testing, reporting, and recordkeeping requirements, separately for each source of biogas, that are
sufficient to ensure compliance with the health protective standards adopted pursuant to subdivision (d). The board, in consultation with the office, the department, CalRecycle and the California Environmental Protection Agency shall update the monitoring, testing, reporting, and recordkeeping requirements at least every five years.
(b) Actions taken pursuant to subdivision (a) shall not constitute regulations and shall be exempt from the administrative regulations and rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Division 2 of Title 2 of the Government Code).
(c) On or before December 31, 2013, for biomethane that is to be injected into a common carrier pipeline, the commission shall, by rule or order, adopt standards that specify, for constituents that may be found in that biomethane, concentrations that are reasonably
necessary to ensure both of the following:
(1) The protection of human health. In making this specification, the commission shall give due deference to the determinations of the board pursuant to paragraph (4) of subdivision (a).
(2) Pipeline and pipeline facility integrity and safety.
(d) To ensure pipeline and pipeline facility integrity and safety, on or before December 31, 2013, the commission, giving due deference to the board’s determinations, shall, by rule or order, adopt the monitoring, testing, reporting, and recordkeeping requirements identified pursuant to paragraph (5) of subdivision (a).
(e) Every five years, or earlier if new information becomes available, the commission shall review and update the standards for the protection of human
health and pipeline integrity and safety adopted pursuant to subdivision (c), as well as the monitoring, testing, reporting, and recordkeeping requirements adopted pursuant to subdivision (d).
(f) (1) A person shall not inject biogas into a common carrier pipeline unless the biogas satisfies both the standards set by the commission pursuant to subdivision (c), as well as the monitoring, testing, reporting, and recordkeeping requirements of subdivision (d).
(2) The commission shall require gas corporation tariffs to condition access to common carrier pipelines on the applicable customer meeting the standards and requirements adopted by the commission pursuant to subdivisions (c) and (d).
(g) (1) A person shall not knowingly sell, supply, or transport, or knowingly cause to
be sold, supplied, or transported, biogas collected from a hazardous waste landfill to a gas corporation through a common carrier pipeline.
(2) A gas corporation shall not knowingly purchase gas collected from a hazardous waste landfill through a common carrier pipeline.
SEC. 55.
Section 38501 of the Health and Safety Code, as amended by Section 1 of Chapter 135 of the Statutes of 2017, is amended to read:38501.
The Legislature finds and declares all of the following:(a) Global warming poses a serious threat to the economic well-being, public health, natural resources, and the environment of California. The potential adverse impacts of global warming include the exacerbation of air quality problems, a reduction in the quality and supply of water to the state from the Sierra snowpack, a rise in sea levels resulting in the displacement of thousands of coastal businesses and residences, damage to marine ecosystems and the natural environment, and an increase in the incidences of infectious diseases, asthma, and other human health-related problems.
(b) Global warming will have detrimental effects on some of California’s largest
industries, including agriculture, wine, tourism, skiing, recreational and commercial fishing, and forestry. It will also increase the strain on electricity supplies necessary to meet the demand for summer air-conditioning in the hottest parts of the state.
(c) California has long been a national and international leader on energy conservation and environmental stewardship efforts, including the areas of air quality protections, energy efficiency requirements, renewable energy standards, natural resource conservation, and greenhouse gas emission standards for passenger vehicles. The program established by this division will continue this tradition of environmental leadership by placing California at the forefront of national and international efforts to reduce emissions of greenhouse gases.
(d) National and international actions are necessary to fully address the issue of global
warming. However, action taken by California to reduce emissions of greenhouse gases will have far-reaching effects by encouraging other states, the federal government, and other countries to act.
(e) By exercising a global leadership role, California will also position its economy, technology centers, financial institutions, and businesses to benefit from national and international efforts to reduce emissions of greenhouse gases. More importantly, investing in the development of innovative and pioneering technologies will assist California in achieving statewide greenhouse gas emissions targets established by this division and will provide an opportunity for the state to take a global economic and technological leadership role in reducing emissions of greenhouse gases.
(f) It is the intent of the Legislature that the State Air Resources Board coordinate with state agencies, as
well as consult with the environmental justice community, industry sectors, business groups, academic institutions, environmental organizations, and other stakeholders in implementing this division.
(g) It is the intent of the Legislature that the State Air Resources Board consult with the Public Utilities Commission in the development of emissions reduction measures, including limits on emissions of greenhouse gases applied to electricity and natural gas methane providers regulated by the Public Utilities Commission in order to ensure that electricity and natural gas methane
providers are not required to meet duplicative or inconsistent regulatory requirements.
(h) It is the intent of the Legislature that the State Air Resources Board design emissions reduction measures to meet the statewide emissions limits for greenhouse gases established pursuant to this division in a manner that minimizes costs and maximizes benefits for California’s economy, improves and modernizes California’s energy infrastructure and maintains electric electrical system reliability, maximizes additional environmental and economic cobenefits for California, and complements the state’s efforts to improve air quality.
(i) It is the intent of the Legislature that the State Air
Resources Board extend the market-based compliance mechanism adopted pursuant to subdivision (c) of Section 38562 from January 1, 2021, to December 31, 2030, inclusive, in a manner that effectively reduces greenhouse gas emissions; minimizes any adverse impacts on state consumers, businesses, and the economy; and continues elements of the current program that protect state utility ratepayers.
(j) It is the intent of the Legislature that the Climate Action Team established by the Governor to coordinate the efforts set forth under Executive Order S-3-05 continue its role in coordinating overall climate policy.
(k) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 56.
Section 38501 of the Health and Safety Code, as added by Section 2 of Chapter 135 of the Statutes of 2017, is amended to read:38501.
(a) Global warming poses a serious threat to the economic well-being, public health, natural resources, and the environment of California. The potential adverse impacts of global warming include the exacerbation of air quality problems, a reduction in the quality and supply of water to the state from the Sierra snowpack, a rise in sea levels resulting in the displacement of thousands of coastal businesses and residences, damage to marine ecosystems and the natural environment, and an increase in the incidences of infectious diseases, asthma, and other human health-related problems.(b) Global warming will have detrimental effects on some of California’s largest industries, including agriculture, wine, tourism, skiing, recreational and commercial fishing, and
forestry. It will also increase the strain on electricity supplies necessary to meet the demand for summer air-conditioning in the hottest parts of the state.
(c) California has long been a national and international leader on energy conservation and environmental stewardship efforts, including the areas of air quality protections, energy efficiency requirements, renewable energy standards, natural resource conservation, and greenhouse gas emission standards for passenger vehicles. The program established by this division will continue this tradition of environmental leadership by placing California at the forefront of national and international efforts to reduce emissions of greenhouse gases.
(d) National and international actions are necessary to fully address the issue of global warming. However, action taken by California to reduce emissions of greenhouse gases will have
far-reaching effects by encouraging other states, the federal government, and other countries to act.
(e) By exercising a global leadership role, California will also position its economy, technology centers, financial institutions, and businesses to benefit from national and international efforts to reduce emissions of greenhouse gases. More importantly, investing in the development of innovative and pioneering technologies will assist California in achieving the 2020 statewide limit on emissions of greenhouse gases established by this division and will provide an opportunity for the state to take a global economic and technological leadership role in reducing emissions of greenhouse gases.
(f) It is the intent of the Legislature that the State Air Resources Board coordinate with state agencies, as well as consult with the environmental justice community, industry sectors,
business groups, academic institutions, environmental organizations, and other stakeholders in implementing this division.
(g) It is the intent of the Legislature that the State Air Resources Board consult with the Public Utilities Commission in the development of emissions reduction measures, including limits on emissions of greenhouse gases applied to electricity and natural gas methane providers regulated by the Public Utilities Commission in order to ensure that electricity and natural gas methane providers are not required to meet duplicative or inconsistent
regulatory requirements.
(h) It is the intent of the Legislature that the State Air Resources Board design emissions reduction measures to meet the statewide emissions limits for greenhouse gases established pursuant to this division in a manner that minimizes costs and maximizes benefits for California’s economy, improves and modernizes California’s energy infrastructure and maintains electric electrical system reliability, maximizes additional environmental and economic cobenefits for California, and complements the state’s efforts to improve air quality.
(i) It is the intent of the Legislature that the Climate Action Team established by the Governor to coordinate the efforts set forth
under Executive Order S-3-05 continue its role in coordinating overall climate policy.
(j) This section shall become operative on January 1, 2031.
SEC. 57.
Section 38562 of the Health and Safety Code, as amended by Section 4 of Chapter 135 of the Statutes of 2017, is amended to read:38562.
(a) On or before January 1, 2011, the state board shall adopt greenhouse gas emissions limits and emissions reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:
(1) Design the regulations, including distribution of emissions allowances where appropriate,
in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.
(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.
(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to before the implementation of this section receive appropriate credit for early voluntary reductions.
(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and
state ambient air quality standards and to reduce toxic air contaminant emissions.
(5) Consider cost-effectiveness of these regulations.
(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.
(7) Minimize the administrative burden of implementing and complying with these regulations.
(8) Minimize leakage.
(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.
(c) (1) Unless otherwise required by
context, terms in this subdivision shall have the definitions that apply pursuant to Section 95802 of Title 17 of the California Code of Regulations, as they read on January 1, 2017.
(2) The state board may adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources. In adopting a regulation applicable from January 1, 2021, to December 31, 2030, inclusive, pursuant to this subdivision, the state board shall do all of the following:
(A) (i) Establish a price ceiling. In establishing the
price ceiling, the state board shall consider, using the best available science, all of the following:
(I) The need to avoid adverse impacts on resident households, businesses, and the state’s economy.
(II) The 2020 tier prices of the allowance price containment reserve.
(III) The full social cost associated with emitting a metric ton of greenhouse gases.
(IV) The auction reserve price.
(V) The potential for environmental and economic leakage.
(VI) The cost per metric ton of greenhouse gas emissions reductions to achieve the statewide emissions targets established in Sections 38550 and 38566.
(ii) To implement the price ceiling, the state board shall develop a mechanism that consists of both of the following:
(I) Allowances remaining in the allowance price containment reserve as of December 31, 2020, shall be utilized used solely for the purpose of sale at the price ceiling established by this section.
(II) If the allowances from the allowance price containment reserve are exhausted, the state board shall offer covered entities additional metric tons at the price ceiling if needed for compliance. All moneys generated pursuant to this clause shall be expended by the state board to achieve emissions reductions, on at
least a metric ton for metric ton basis, that are real, permanent, quantifiable, verifiable, enforceable by the state board and in addition to any greenhouse gas emission reduction otherwise required by law or regulation and any other greenhouse gas emission reduction that otherwise would occur.
(B) Establish two price containment points at levels below the price ceiling. The state board shall offer to covered entities nontradable allowances for sale at these price containment points. The price containment points shall be established using two-thirds, divided equally, of the allowances in the allowance price containment reserve as of December 31, 2017.
(C) Require that current vintage allowances designated by the state board for auction that remain unsold in the auction holding account for more than 24 months to be transferred to the allowance price containment reserve.
(D) Evaluate and address concerns related to overallocation in the state board’s determination of the number of available allowances for years 2021 to 2030, inclusive, as appropriate.
(E) (i) Establish offset credit limits according to the following:
(I) From January 1, 2021, to December 31, 2025, inclusive, a total of 4 percent of a covered entity’s compliance obligation may be met by surrendering offset credits of which no more than one-half may be sourced from projects that do not provide direct environmental benefits in state.
(II) From January 1, 2026, to December 31, 2030, inclusive, a total of 6 percent of a covered entity’s compliance obligation may be met by surrendering offset credits of which no more than one-half may be
sourced from projects that do not provide direct environmental benefits in the state.
(ii) For purposes of this subparagraph, “direct environmental benefits in the state” are the reduction or avoidance of emissions of any air pollutant in the state or the reduction or avoidance of any pollutant that could have an adverse impact on waters of the state.
(F) Develop approaches to increase offset projects in the state considering guidance provided by the Compliance Offsets Protocol Task Force, established pursuant to Section 38591.1.
(G) Set industry assistance factors for allowance allocation commencing in 2021 at the levels applicable in the compliance period of 2015 to 2017, inclusive. The state board shall apply a declining cap adjustment factor to the industry allocation equivalent to the overall statewide emissions
declining cap using the methodology from the compliance period of 2015 to 2017, inclusive.
(H) Establish allowance banking rules that discourage speculation, avoid financial windfalls, and consider the impact on complying entities and volatility in the market.
(I) Report to the Legislature, by December 31, 2025, on the progress toward meeting the greenhouse gas emissions reduction targets established pursuant to Sections 38550 and 38566 and the leakage risk posed by the regulation. The state board shall include recommendations to the Legislature on necessary statutory changes to the program to reduce leakage, including the potential for a border carbon adjustment, while maintaining the state’s ability to reach its targets.
(J) (i) Report to the Legislature, in consultation with the Independent
Emissions Market Advisory Committee, established pursuant to Section 38591.2, if two consecutive auctions exceed the lower of the price containment levels established pursuant to subparagraph (B). The report shall assess the potential for allowance prices to reach the price ceiling for multiple auctions.
(ii) A report submitted to the Legislature pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(K) Report to the relevant fiscal and policy committees of the Legislature, including the Joint Committee on Climate Change Policies, on all of the following:
(i) Updates to the scoping plan prepared pursuant to Section 38561 prior to
before adopting the update.
(ii) Updates on the implementation of the scoping plan prepared pursuant to Section 38561.
(iii) Updates on the implementation of the market-based compliance mechanism adopted pursuant to this subdivision.
(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:
(1) The greenhouse gas emission reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.
(2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission reduction
otherwise required by law or regulation, and any other greenhouse gas emission reduction that otherwise would occur.
(3) If applicable, the greenhouse gas emission reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.
(e) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.
(f) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas
methane providers in order to minimize duplicative or inconsistent regulatory requirements.
(g) The state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.
(h) This section shall remain in effect only until January 1, 2031, and as of that date is repealed, unless a later enacted statute which that is enacted before that date, deletes or extends that date.
SEC. 58.
Section 38562 of the Health and Safety Code, as added by Section 5 of Chapter 135 of the Statutes of 2017, is amended to read:38562.
(a) On or before January 1, 2011, the state board shall adopt greenhouse gas emissions limits and emissions reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2012.(b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit, the state board shall do all of the following:
(1) Design the regulations, including distribution of emissions allowances where appropriate,
in a manner that is equitable, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions.
(2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.
(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to before the implementation of this section receive appropriate credit for early voluntary reductions.
(4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain federal and
state ambient air quality standards and to reduce toxic air contaminant emissions.
(5) Consider cost-effectiveness of these regulations.
(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.
(7) Minimize the administrative burden of implementing and complying with these regulations.
(8) Minimize leakage.
(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.
(c) In furtherance of achieving the statewide greenhouse gas
emissions limit, the state board may adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board determines will achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions, in the aggregate, from those sources or categories of sources.
(d) Any regulation adopted by the state board pursuant to this part or Part 5 (commencing with Section 38570) shall ensure all of the following:
(1) The greenhouse gas emission reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the state board.
(2) For regulations pursuant to Part 5 (commencing with Section 38570),
the reduction is in addition to any greenhouse gas emission reduction otherwise required by law or regulation, and any other greenhouse gas emission reduction that otherwise would occur.
(3) If applicable, the greenhouse gas emission reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this division.
(e) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section.
(f) The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas
methane providers in order to minimize duplicative or inconsistent regulatory requirements.
(g) The state board may revise regulations adopted pursuant to this section and adopt additional regulations to further the provisions of this division.
(h) This section shall become operative on January 1, 2031.
SEC. 59.
Section 38594 of the Health and Safety Code, as amended by Section 12 of Chapter 135 of the Statutes of 2017, is amended to read:38594.
(a) Except as provided in subdivision (b), nothing in this division shall limit or expand the existing authority of any district.(b) A district shall not adopt or implement an emission reduction rule for carbon dioxide from stationary sources that are also subject to a market-based compliance mechanism adopted by the state board pursuant to subdivision (c) of Section 38562.
(c) Nothing in this section affects in any manner the authority of a district to adopt or implement, as applicable, any of the following:
(1) A rule, regulation, standard, or requirement authorized or required for a district to adopt under Division 26 (commencing with
Section 39000) for purposes other than to reduce carbon dioxide from sources subject to a market-based compliance mechanism adopted by the state board pursuant to subdivision (c) of Section 38562.
(2) A rule, regulation, standard, or requirement authorized pursuant to a law affecting emissions associated with landfills, refrigerants, natural gas or methane, volatile organic compounds, or a rule required to comply with the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or regulations implementing that act.
(3) A rule, regulation, standard, or requirement authorized pursuant to a law to reduce vehicle trips, vehicle miles traveled, parking, or vehicular air emissions, including, but not limited to, a rule adopted pursuant to Chapter 728 of the Statutes of 2008.
(4) A rule, regulation, standard, or requirement established pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(5) A rule, regulation, standard, or requirement adopted by any state agency.
(d) This section shall become inoperative if the state board repeals the market-based compliance mechanism adopted by the state board pursuant to subdivision (c) of Section 38562. The state board shall notify the Secretary of State if this section becomes inoperative.
(e) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 60.
Section 39607 of the Health and Safety Code is amended to read:39607.
The state board shall:(a) Establish a program to secure data on air quality in each air basin established by the state board.
(b) (1) Inventory sources of air pollution within the air basins of the state and determine the kinds and quantity of air pollutants, including, but not limited to, the contribution of natural sources, mobile sources, and area sources of emissions, including a separate identification of those sources not subject to district permit requirements, to the extent feasible and necessary to carry out the purposes of this chapter. The state board shall use, to the fullest extent, the data of local agencies and other state and federal agencies in fulfilling this purpose.
(2) Make available on the state board’s Internet Web site internet website the emissions of greenhouse gases, criteria air pollutants, and toxic air contaminants throughout the state broken down to a local and subcounty level for stationary sources and to at least a county level for mobile sources. The emissions reported shall include data on the emissions of criteria air pollutants and toxic air contaminants emitted by stationary sources as provided to the state board by districts. The information shall be displayed graphically and updated at least once a year.
(3) (A) Quantify and publish annually, commencing January 1, 2020, and based on the best available science and
information, the amount of greenhouse gas emissions, expressed in metric tons of carbon dioxide equivalents, resulting from the loss or release of uncombusted natural gas
methane to the atmosphere and emissions from natural gas methane flares during all processes associated with the production, processing, and transporting of natural gas methane that is imported into the state from out-of-state sources.
(B) Nothing in this paragraph shall be interpreted as expanding, contracting, or otherwise altering other requirements for greenhouse gas emissions reporting by sources or categories of sources or for the statewide greenhouse gas emissions limit.
(c) Monitor air pollutants in cooperation with districts and with other agencies to fulfill the purpose of this division.
(d) Adopt test procedures to measure compliance with its nonvehicular emission standards and those of districts.
(e) Establish and periodically review criteria for designating an air basin attainment or nonattainment for any state ambient air quality standard set forth in Section 70200 of Title 17 of the California Code of Regulations. In developing and reviewing these criteria, the state board shall consider instances where there is poor or limited ambient air quality data, and shall consider highly irregular or infrequent violations. The state board shall provide an opportunity for public comment on the proposed criteria, and shall adopt the criteria after a public hearing.
(f) Evaluate, in consultation with the districts and other interested parties, air quality-related indicators that may be used to measure or estimate progress in the attainment of state standards and establish a list of approved indicators. On or before July 1, 1993, the state board shall identify one or more air quality indicators to be used by districts in assessing progress as required by subdivision (b) of Section 40924. The state board shall continue to evaluate the prospective application of air quality indicators and, upon a finding that adequate air quality modeling capability exists, shall identify one or more indicators that may be used by districts in lieu of the annual emission reductions mandated by subdivision (a) of Section 40914. In no case shall any indicator be less stringent or less protective, on the basis of overall health protection, than the annual emission reduction requirement in subdivision (a) of Section 40914.
(g) Establish, not later than July 1, 1996, a uniform methodology that may be used by districts in assessing population exposure, including, but not limited to, reduction in exposure of districtwide subpopulations, such as children, the elderly, and persons with respiratory disease, to ambient air pollutants at levels above the state ambient air quality standards, for estimating reductions in population exposure for the purposes of Sections 40913, 40924, and 41503, and for the establishment of the means by which reductions in population exposures may be achieved. The methodology adopted pursuant to this subdivision shall be consistent with the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.), and with this division, including, but not limited to, Section 39610.
SEC. 61.
Section 39731 of the Health and Safety Code is amended to read:39731.
The state board shall do all of the following:(a) Undertake, in consultation with districts that monitor methane, monitoring and measurements of high-emission methane hot spots in the state using the best available and cost-effective scientific and technical methods.
(b) Consult with federal and state agencies, independent scientific experts, and any other appropriate entities to gather or acquire the necessary information for the purpose of carrying out a life-cycle greenhouse gas emission analysis of natural gas methane produced and
imported into the state using the best available and cost-effective scientific and technical methods.
(c) Update relevant policies and programs to incorporate the information gathered and acquired pursuant to subdivisions (a) and (b).
(d) Review, in consultation with independent scientific experts, the most recent available scientific data and reports on the atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants.
SEC. 62.
Section 39733 of the Health and Safety Code is amended to read:39733.
(a) The Woodsmoke Reduction Program is hereby established to be developed and administered by the state board, in coordination with districts, to promote the voluntary replacement of old, uncertified wood-burning stoves with cleaner burning and more energy-efficient alternatives in order to achieve short- and long-term climate benefits and localized public health benefits. The program shall include all of the following:(1) Replacement of older, less efficient, uncertified wood-burning devices, including, but not limited to, woodstoves and wood inserts, with cleaner burning, more efficient home heating alternatives.
(2) Prioritizing using incentive moneys on the most efficient, nonwood-burning devices,
including, but not limited to, heat pumps and solar, electric, and natural gas methane heaters.
(3) Prioritizing the cleanest and best available technologies if nonwood alternatives are infeasible or cost prohibitive, including education on proper burn practices to reduce emissions when wood is used.
(4) Opportunities for demonstrating and providing information about the cleanest residential heating technologies as part of outreach efforts.
(5) Requirements for the professional installation of new devices being changed out in order to maximize energy efficiency and minimize emissions.
(b) Moneys for the program shall be available to the state board, upon appropriation by the Legislature, including, but not limited to, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.
SEC. 63.
Section 40448.5 of the Health and Safety Code is amended to read:40448.5.
(a) The south coast district shall establish an Office of Technology Advancement to administer the clean-burning fuels program established pursuant to this section. The program shall encourage projects that increase the(b) After holding at least two public hearings to solicit public comment on a clean-burning fuels program, the south coast district shall annually adopt a program of activities for increasing the use of clean-burning fuels in the transportation and stationary source sectors.
(c) The program shall include an identification of potential funding sources, including, but not limited to, state and federal funds; private-sector funds; revenues from district permit, variance, and emission fees; proceeds from district penalty settlements and judgments; and funds from other sources under the jurisdiction of the south coast district.
(d) In developing its program, the south coast district shall consider promoting projects in the transportation and stationary source sectors utilizing methanol fuel, fuel cells, liquid
petroleum gas, natural gas,
methane, including compressed natural gas, methane, combination fuels, synthetic fuels, electricity, including electric vehicles, and other clean-burning fuels.
(e) When considering which clean fuels projects to promote, the south coast district shall consider, among other factors, the current and projected economic costs and availability of fuels, the cost-effectiveness of emission reductions associated with clean fuels compared with other pollution control alternatives, the use of new pollution control technologies in conjunction with traditional fuels as an alternative means of reducing emissions, potential effects on public health, ambient air quality, visibility within the region, and other factors determined to
be relevant by the south coast district.
(f) When implementing clean fuels projects, the south coast district shall consider limiting the use of clean fuels to specific seasons, time of day, and locations if those limitations are found by the district to further the goals of the program.
(g) The south coast district shall coordinate the clean-burning fuels program with transportation control measures adopted pursuant to paragraph (4) of subdivision (b) of Section 40440 to reduce traffic congestion, air pollution, and motor vehicle fuel consumption.
SEC. 64.
Section 40516 of the Health and Safety Code is amended to read:40516.
(a) The south coast district shall establish expedited permit review and project assistance mechanisms for facilities or projects(b) The mechanisms shall include all of the following:
(1) The issuance of consolidated permits, serving the purpose of both the permit to construct and the permit to operate, to expedite the
permitting process.
(2) The review and processing of permits on a facility or project basis rather than on an equipment basis to ensure a single point of contact for the applicant and to allow entire projects to be reviewed and evaluated on a single, consolidated schedule.
(3) The establishment of a “fast track” permitting procedure to approve permits in an average of 30 days from receipt of all information requested by the district, except for any of the following facilities:
(A) Facilities that may emit significant amounts of toxic air contaminants.
(B) Facilities that require public notice.
(C) Facilities that require additional review to meet the requirements of the federal Clean
Air Act (42 U.S.C. Sec. 7401 et seq.) or the California Clean Air Act of 1988 (Chapter 1568 of the Statutes of 1988).
(4) The development and implementation of postconstruction enforcement procedures to ensure that new and modified sources are constructed according to permit requirements.
(5) The establishment of a liaison program in the office of public adviser to assist facilities participating in research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies with preparing permit applications, complying with other district administrative procedures, and identifying and applying for state, federal, district, or other available funds set aside for electric and other clean fuel vehicle-related projects.
(c) For purposes of this section, clean fuels are fuels
designated by the state board for use in low, ultralow, or zero emission vehicles and include, but are not limited to, electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, natural
gas, methane, and reformulated gasoline.
SEC. 65.
Section 40603 of the Health and Safety Code is amended to read:40603.
(a) The district shall establish expedited permit review and project assistance mechanisms for facilities or projects that are directly related to research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies.(b) The mechanisms shall include all of the following:
(1) The issuance of consolidated permits, for both construction and operation, in order to expedite the permitting process.
(2) The review and processing of permits on a facility or project basis rather than on an equipment basis, to ensure a single point of contact for the
applicant and to allow entire projects to be reviewed and evaluated on a single, consolidated schedule.
(3) The establishment of a “fast track” permitting procedure to approve permits in an average of 30 days from receipt of all information requested by the district, except for any of the following facilities:
(A) Facilities that may emit significant amounts of toxic air contaminants.
(B) Facilities that require public notice.
(C) Facilities that require additional review to meet the requirements of the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or the California Clean Air Act of 1988 (Chapter 1568 of the Statutes of 1988).
(4) The development and implementation of
postconstruction enforcement procedures to ensure that new and modified sources are constructed according to permit requirements.
(5) The establishment of a liaison program to assist facilities participating in research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies with preparing permit applications, complying with other district administrative procedures, and identifying and applying for state, federal, district, or other available funds set aside for electric and other clean fuel vehicle related projects.
(c) For purposes of this chapter, “clean fuels” are fuels designated by the state board for use in zero emission or partial zero emission vehicles and include, but are not limited to, electricity, hydrogen, liquefied petroleum gas, methanol, and natural gas.
methane.
SEC. 66.
Section 41062 of the Health and Safety Code is amended to read:41062.
(a) The strategy shall include a clean fuels program to provide, to the extent feasible and necessary to carry out the purposes of this chapter, a schedule for the introduction of cleaner burning alternative fuels and low-emission motor vehicles or control measures providing equivalent emission reductions within the district, a program to encourage the establishment of the necessary infrastructure to support the introduction of cleaner burning fuels, and demonstration programs and incentives to encourage the purchase of clean fueled vehicles and the use of cleaner burning fuels.(b) In developing the clean fuels program, the district shall consider projects utilizing
using methanol fuel; fuel cells; liquid petroleum gas; natural
gas, methane, including compressed natural gas; methane; combination fuels; synthetic fuels; electricity, including electric vehicles; ethanol; and other cleaner burning fuels.
(c) Nothing in this section authorizes the Sacramento district to require the sale or supply of any specific motor vehicle fuel.
SEC. 67.
Section 41081 of the Health and Safety Code, as amended by Section 3 of Chapter 355 of the Statutes of 2022, is amended to read:41081.
(a) Subject to Article 3.7 (commencing with Section 53720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, or with the approval of the board of supervisors of each county included, in whole or in part, within the Sacramento district, the Sacramento district board may adopt a surcharge on the motor vehicle registration fees applicable to all motor vehicles registered in those counties within the Sacramento district whose boards of supervisors have adopted a resolution approving the surcharge. The surcharge shall be collected by the Department of Motor Vehicles and, after deducting the department’s administrative costs, the remaining funds shall be transferred to the Sacramento district. Before the adoption of any surcharge pursuant to this subdivision, the district board shall make a finding that any funds allocated to the district as a result of the adoption of a county transportation sales and use tax are insufficient to carry out the purposes of this chapter.(b) The surcharge shall not exceed six dollars ($6).
(c) After consulting with the Department of Motor Vehicles on the feasibility thereof, the Sacramento district board may provide, in the surcharge adopted pursuant to subdivision (a), to exempt from all or part of the surcharge any category of low-emission motor vehicle.
(d) Funds received by the Sacramento district pursuant to this section shall be used by that district as follows:
(1) The revenues resulting from the first four dollars ($4) of each surcharge shall be used to implement reductions in emissions from vehicular sources, including,
but not limited to, a clean fuels program and motor vehicle use reduction measures.
(2) The revenues resulting from the next two dollars ($2) of each surcharge shall be used to implement the following programs that achieve emission reductions from vehicular sources and off-road engines, to the extent that the district determines the program remediates air pollution harms created by motor vehicles on which the surcharge is imposed:
(A) Projects eligible for grants under the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5).
(B) The new purchase, retrofit, repower, or add-on of equipment for previously unregulated agricultural sources of air pollution, as defined in Section 39011.5, within the Sacramento district, for a minimum of three years from the
date of adoption of an applicable rule or standard, or until the compliance date of that rule or standard, whichever is later, if the state board has determined that the rule or standard complies with Sections 40913, 40914, and 41503.1, after which period of time, a new purchase, retrofit, repower, or add-on of equipment shall not be funded pursuant to this chapter. The district shall follow any guidelines developed under subdivision (a) of Section 44287 for awarding grants under this program.
(C) The purchase of new schoolbuses or the repower or retrofit of emissions control equipment for existing schoolbuses pursuant to the Lower-Emission School Bus Program adopted by the state board.
(D) An accelerated vehicle retirement or repair program that is adopted by the state board pursuant to authority granted hereafter by the Legislature by statute.
(E) The replacement of onboard natural gas methane fuel tanks on schoolbuses that are 14 years or older or the enhancement of deteriorating natural gas methane fueling dispensers of fueling infrastructure, pursuant to the Lower-Emission School Bus Program adopted by the state board.
(F) The funding of alternative fuel and electric infrastructure projects solicited and selected through a competitive bid process.
(e) Not more than 6.25 percent
of the funds collected pursuant to this section shall be used by the district for administrative expenses.
(f) A project funded by the program shall not be used for credit under any state or federal emissions averaging, banking, or trading program. An emission reduction generated by the program shall not be used as marketable emission reduction credits or to offset any emission reduction obligation of any person or entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling board’s policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the
program.
(g) This section shall remain in effect only until January 1, 2034, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2034, deletes or extends that date.
SEC. 68.
Section 41704 of the Health and Safety Code is amended to read:41704.
Section 41701 does not apply to any of the following:(a) Fires set pursuant to Section 41801.
(b) Agricultural burning for which a permit has been granted pursuant to Article 3 (commencing with Section 41850).
(c) Fires set or permitted by any public officer in the performance of his or her their official duty for the improvement of watershed, range, or pasture.
(d)
Use of any aircraft to distribute seed, fertilizer, insecticides, or other agricultural aids over lands devoted to the growing of crops or raising of fowl or animals.
(e) Open outdoor fires used only for cooking of food for human beings or for recreational purposes.
(f) The use of orchard and citrus grove heaters which that are in compliance with the requirements set forth in Section 41860.
(g) Agricultural operations necessary for the growing of crops or raising of fowl or animals.
(h) The use of other equipment in agricultural
operations necessary for the growing of crops or raising of fowl or animals.
(i) Fugitive dust emissions from rock crushing facilities within the Southeast Desert Air Basin, where the facilities were in existence prior to before January 1, 1970, at a location where the population density is less than 10 persons per square mile in each square mile within a seven-mile radius of the facilities; provided, however, that under no circumstances shall the emissions cause a measurable degradation of the ambient air quality or create a nuisance. This subdivision does not apply to any rock crushing facilities which
that (1) process in excess of 100 tons of rock in any 24-hour period, averaged over any period of 30 consecutive days, (2) have 25 or more employees, (3) fail to operate and maintain in good working order any emission control equipment installed prior to before January 1, 1978, or (4) undergo a change of ownership after January 1, 1977.
(j) Emissions from vessels using steam boilers during emergency boiler shutdowns for safety reasons, safety and operational tests required by governmental agencies, and where maneuvering is required to avoid hazards.
(k) Emissions from vessels during a breakdown condition, as long as the discharge is reported in
accordance with district requirements.
( l) The use of visible emission generating equipment in training sessions conducted by governmental agencies necessary for certifying persons to evaluate visible emissions for compliance with Section 41701 or applicable district rules and regulations. Any local or regional authority rule or regulation relating to visible emissions are not applicable to the equipment.
(m) Smoke emissions from teepee burners operating in compliance with Section 4438 of the Public Resources Code during the disposal of forestry and agricultural residues or forestry and agricultural residues with supplementary fossil fuels when the emissions result from the startup or shutdown of the combustion process or from the malfunction of emission control equipment. This subdivision does not apply to emissions which
that exceed a period or periods of time aggregating more than 30 minutes in any 24-hour period. This subdivision does not apply to emissions which that result from the failure to operate and maintain in good working order any emission control equipment.
(n) Smoke emissions from burners used to produce energy and fired by forestry and agricultural residues with supplementary fossil fuels when the emissions result from startup or shutdown of the combustion process or from the malfunction of emission control equipment. This subdivision does not apply to emissions which
that exceed a period or periods of time aggregating more than 30 minutes in any 24-hour period, or which that result from the failure to operate and maintain in good working order any emission control equipment.
(o) Emissions from methanol fuel manufacturing plants which that manufacture not more than 2,000,000 gallons of methanol fuel per day from wood, agricultural waste, natural gas,
methane, or coke (exclusive of petroleum coke). As used in this subdivision, “manufacturing plant” includes all necessary support systems, including field operations equipment that provide feed stock. However, this subdivision shall apply to not more than one methanol fuel manufacturing plant in each air basin and each plant shall be located in an area designated as an “attainment area” pursuant to the Clean Air Act (42 U.S.C. Sec. 7401 et seq.) and shall meet all applicable standards required by the district board. This subdivision shall remain in effect with respect to a plant until five years after construction of the plant and shall have no force and effect with respect to the plant on and after that date.
(p) The use of an obscurant for the purpose of training military personnel and the testing of military equipment by the United States Department of Defense on any military
reservation.
SEC. 69.
Section 42301.15 of the Health and Safety Code is amended to read:42301.15.
Each district shall adopt an expedited program for the permitting of standby electrical generation facilities, distributed generation facilities, geothermal facilities, including wells, and, where applicable,SEC. 70.
Section 42710 of the Health and Safety Code is amended to read:42710.
(a) The state board, in consultation with any local air district and the Geologic Energy Management Division in the Department of Conservation, shall develop a(b) (1) The program shall include guidelines for
the continuous monitoring which shall include, that includes, at minimum, optical gas imaging, where applicable, and accurate quantitative monitoring of natural gas methane concentrations. The program shall include protocols for both stationary and mobile monitoring, as well as and fixed and temporary monitoring locations.
(2) The program shall require optical gas imaging when a
large, ongoing leak occurs.
(c) An operator of a natural gas methane storage facility shall develop and submit to the state board a facility monitoring plan that satisfies program requirements pursuant to subdivisions (a) and (b). The state board shall review the plan and may approve or disapprove the plan.
(d) An operator of a natural gas methane storage facility shall conduct monitoring in accordance with the facility monitoring plan approved by the state board pursuant to subdivision (c).
(e) An operator of a natural gas methane storage facility shall provide monitoring data to the state board. All materials provided to comply with this section shall be posted and available to the public on the internet website of the state board.
SEC. 71.
Section 43867 of the Health and Safety Code is amended to read:43867.
For(a) “Alternative fuel” means a nonpetroleum fuel, including electricity, ethanol, biodiesel, hydrogen, methanol, or natural gas methane that, when used in vehicles, has been demonstrated, to the satisfaction of the state board, to have the ability to meet applicable vehicular emission standards. For the purpose of this section, alternative fuel may also include petroleum fuel blended with
nonpetroleum constituents, such as E85 or B20.
(b) “Full fuel-cycle assessment” means evaluating and comparing the full environmental and health impacts of each step in the life cycle of a fuel, including, but not limited to, all of the following:
(1) Feedstock extraction, transport, and storage.
(2) Fuel production, distribution, transport, and storage.
(3) Vehicle operation, including refueling, combustion or conversion, and evaporation.
SEC. 72.
Section 44229 of the Health and Safety Code, as amended by Section 7 of Chapter 355 of the Statutes of 2022, is amended to read:44229.
(a) After deducting all administrative costs it incurs through collection of fees pursuant to Section 44227, the Department of Motor Vehicles shall distribute the revenues to districts, which shall use the revenues resulting from the first four dollars ($4) of each fee imposed to reduce air pollution from motor vehicles and to carry out related planning, monitoring, enforcement, and technical studies necessary for implementation of the California Clean Air Act of 1988 (Chapter 1568 of the Statutes of 1988). Fees collected by the Department of Motor Vehicles pursuant to this chapter shall be distributed to districts based upon the amount of fees collected from motor vehicles registered within each district.(b) Notwithstanding Sections 44241 and 44243, a district
shall use the revenues resulting from the next two dollars ($2) of each fee imposed pursuant to Section 44227 to implement the following programs that the district determines remediate air pollution harms created by motor vehicles on which the surcharge is imposed:
(1) Projects eligible for grants under the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5).
(2) The new purchase, retrofit, repower, or add-on equipment for previously unregulated agricultural sources of air pollution, as defined in Section 39011.5, for a minimum of three years from the date of adoption of an applicable rule or standard, or until the compliance date of that rule or standard, whichever is later, if the state board has determined that the rule or standard complies with Sections 40913, 40914, and 41503.1, after which period of time, a new
purchase, retrofit, repower, or add-on of equipment shall not be funded pursuant to this chapter. The districts shall follow any guidelines developed under subdivision (a) of Section 44287 for awarding grants under this program.
(3) The purchase of new schoolbuses or the repower or retrofit of emissions control equipment for existing schoolbuses pursuant to the Lower-Emission School Bus Program adopted by the state board.
(4) An accelerated vehicle retirement or repair program that is adopted by the state board pursuant to authority granted hereafter by the Legislature by statute.
(5) The replacement of onboard natural gas methane
fuel tanks on schoolbuses that are 14 years or older or the enhancement of deteriorating natural gas methane fueling dispensers of fueling infrastructure, pursuant to the Lower-Emission School Bus Program adopted by the state board.
(6) The funding of alternative fuel and electric infrastructure projects solicited and selected through a competitive bid process.
(c) The Department of Motor Vehicles may annually expend not more than 1 percent of the fees collected pursuant to Section 44227 on administrative costs.
(d) A project funded by the program shall not be used for credit under any state or federal emissions
averaging, banking, or trading program. An emission reduction generated by the program shall not be used as marketable emission reduction credits or to offset any emission reduction obligation of any person or entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling board’s policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.
(e) This section shall remain in effect only until January 1, 2034, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2034, deletes or
extends that date.
SEC. 73.
Section 78075 of the Health and Safety Code is amended to read:78075.
(a) “Hazardous substance” means:(1) Any substance designated pursuant to Section 1321(b)(2)(A) of Title 33 of the United States Code.
(2) Any element, compound, mixture, solution, or substance designated pursuant to Section 102 of the federal act (42 U.S.C. Sec. 9602).
(3) Any hazardous waste having the characteristics identified under or listed pursuant to Section 6921 of Title 42 of the United States Code, but not including any waste the regulation of which under the federal Solid Waste Disposal Act (42 U.S.C. Sec. 6901 et seq.) has been suspended by act of Congress.
(4) Any toxic pollutant listed under Section 1317(a) of Title 33 of the United States Code.
(5) Any hazardous air pollutant listed under Section 7412 of Title 42 of the United States Code.
(6) Any imminently hazardous chemical substance or mixture with respect to which the Administrator of the United States Environmental Protection Agency has taken action pursuant to Section 2606 of Title 15 of the United States Code.
(7) Any hazardous waste or extremely hazardous waste as defined by Sections 25117 and 25115, respectively, unless expressly excluded.
(b) “Hazardous substance” does not include:
(1) Petroleum, including crude oil or any fraction of crude oil that is not otherwise
specifically listed or designated as a hazardous substance in paragraphs (1) to (6), inclusive, of subdivision (a), and natural gas, natural gas methane, methane liquids, liquefied natural gas, methane, or synthetic gas usable for fuel (or mixtures of natural gas methane
and synthetic gas usable for fuel).
(2) Ash produced by a resource recovery facility utilizing using a municipal solid waste stream.
(3) Nontoxic, nonflammable, noncorrosive stormwater runoff drained from underground vaults, chambers, or manholes into gutters or storm sewers.
SEC. 74.
Section 7655 of the Labor Code is amended to read:7655.
The division shall prepare and adopt regulations in accordance with the Administrative Procedure Act provided for in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, designed to promote safety with respect to the installation and operation of vendor facilities for the storage and pumping of compressed or liquefiedSEC. 75.
Section 7800 of the Labor Code is amended to read:7800.
“Volatile flammable liquids” as used in this part means any petroleum or liquid product of petroleum orSEC. 76.
Section 2202 of the Public Contract Code is amended to read:2202.
As used in this chapter, the following definitions apply:(a) “Awarding body” means a department, board, agency, authority, or officer, agent, or other authorized representative of the public entity awarding a contract for goods or services.
(b) “Energy sector” of Iran means activities to develop petroleum or natural gas methane resources or nuclear power in Iran.
(c) “Financial institution” means the term as used in Section 14 of the Iran Sanctions Act of 1996 (Public Law
104-172; 50 U.S.C. 1701 note).
(d) “Iran” includes the Government of Iran and any agency or instrumentality of Iran.
(e) “Person” means any of the following:
(1) A natural person, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group.
(2) Any governmental entity or instrumentality of a government, including a multilateral development institution, as defined in Section 1701(c)(3) of the International Financial Institutions Act (22 U.S.C. 262r(c)(3)).
(3) Any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in
paragraph (1) or (2).
SEC. 77.
Section 2202.5 of the Public Contract Code is amended to read:2202.5.
For purposes of this chapter, a person engages in investment activities in Iran if any of the following is true:(a) The person provides goods or services of twenty million dollars ($20,000,000) or more in the energy sector of Iran, including a person that provides oil or liquefied natural gas methane tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas, methane,
for the energy sector of Iran.
(b) The person is a financial institution that extends twenty million dollars ($20,000,000) or more in credit to another person, for 45 days or more, if that person will use the credit to provide goods or services in the energy sector in Iran and is identified on a list created pursuant to subdivision (b) of Section 2203 as a person engaging in investment activities in Iran as described in subdivision (a).
SEC. 78.
Section 10295.3 of the Public Contract Code is amended to read:10295.3.
(a) (1) Notwithstanding any other(2) For purposes of this section,
“contract” includes contracts with a cumulative amount of one hundred thousand dollars ($100,000) or more per contractor in each fiscal year.
(3) For purposes of this section, “domestic partner” means one of two persons who has filed a declaration of domestic partnership with the Secretary of State pursuant to Division 2.5 (commencing with Section 297) of the Family Code.
(4) (A) Subject to subparagraph (B), this section does not apply to any contracts executed or amended prior to before January 1, 2007, or to bid packages advertised and made available to the public, or any competitive or sealed bids received by the state, prior to
before January 1, 2007, unless and until those contracts or property contracts are amended after December 31, 2006, and would otherwise be subject to this section.
(B) If a duration of a contract executed or amended prior to before January 1, 2007, is for more than one year going beyond January 1, 2008, this section shall apply to the contract on January 1, 2008.
(5) The requirements of this section shall apply only to those portions of a contractor’s operations that occur under any of the following conditions:
(A) Within the state.
(B) On real property outside the state if the property is owned by the state or if the state has a right to occupy the property, and if the contractor’s presence at that location is connected to a contract with the state.
(C) Elsewhere in the United States where work related to a state contract is being performed.
(b) Contractors shall treat as confidential to the maximum extent allowed by law or by the requirement of the contractor’s insurance provider, any request by an employee or applicant for employment for domestic partner or spousal benefits or any documentation of eligibility for domestic partner or spousal benefits submitted by an employee or applicant for employment.
(c) After taking all reasonable measures to find a contractor that complies with this section, as determined by the state agency,
the requirements of this section may be waived under any of the following circumstances:
(1) Whenever there is only one prospective contractor willing to enter into a specific contract with the state agency.
(2) If the contract is necessary to respond to an emergency, as determined by the state agency, that endangers the public health, welfare, or safety, or the contract is necessary for the provision of essential services, and no entity that complies with the requirements of this section capable of responding to the emergency is immediately available.
(3) Where the requirements of this section violate, or are inconsistent with, the terms or conditions of a grant, subvention, or agreement, provided that a good faith attempt has been made by the agency to change the terms or conditions of any grant, subvention, or
agreement to authorize application of this section.
(4) Where the contractor is providing wholesale or bulk water, power, electricity, or natural gas, methane, the conveyance or transmission of the same, or ancillary services, as required for assuring reliable services in accordance with good utility practice, provided that the purchase of the same may shall not practically be
accomplished through the standard competitive bidding procedures, and further provided that this exemption does not apply to contractors providing direct retail services to end users.
(d) (1) If there is a difference in the cost to provide a certain benefit to a domestic partner or spouse, the contractor is not deemed to be in violation of this section so long as the contractor permits the employee to pay any excess costs.
(2) The contractor is not deemed to discriminate in the provision of benefits if the contractor, in providing the benefits, pays the actual costs incurred in obtaining the benefit.
(3) In the event a contractor is unable to provide a certain benefit, despite taking reasonable measures to do so, the contractor may
shall not be deemed to discriminate in the provision of benefits.
(4) For any contracts executed or amended on or after July 1, 2004, and prior to before January 1, 2007, and to bid packages advertised and made available to the public, or any competitive or sealed bids received by the state, on or after July 1, 2004, and prior to before January 1, 2007, unless and until those contracts or bid packages are amended after June 30, 2004, but prior to
before January 1, 2007, and would otherwise be subject to this section, a contractor may require an employee to pay the costs of providing additional benefits that are offered to comply with this section if an employee elects to have the additional benefits. This paragraph shall not be construed to permit a contractor to require an employee to cover the costs of providing any benefits, which benefits that have otherwise been provided to all employees regardless of marital or domestic partner status.
(e) A contractor is not deemed to be in violation of this section if the contractor does any of the following:
(1) Offers the same benefits to employees with
domestic partners and employees with spouses and offers the same benefits to domestic partners and spouses of employees.
(2) Elects to provide the same benefits to individuals that are provided to employees’ spouses and employees’ domestic partners.
(3) Elects to provide benefits on a basis unrelated to an employee’s marital status or domestic partnership status, including, but not limited to, allowing each employee to designate a legally domiciled member of the employee’s household as being eligible for benefits.
(4) Elects not to provide benefits to employees based on their marital status or domestic partnership status, or elects not to provide benefits to employees’ spouses and to employees’ domestic partners.
(f) (1) Every
contract subject to this chapter shall contain a statement by which the contractor certifies that the contractor is in compliance with this section.
(2) The department or other contracting agency shall enforce this section pursuant to its existing enforcement powers.
(3) (A) If a contractor falsely certifies that it is in compliance with this section, the contract with that contractor shall be subject to Article 9 (commencing with Section 10420), unless, within a time period specified by the department or other contracting agency, the contractor provides to the department or agency proof that it has complied, or is in the process of complying, with this section.
(B) The application of the remedies or penalties contained in Article 9 (commencing with Section 10420) to a contract subject to this
chapter shall not preclude the application of any existing remedies otherwise available to the department or other contracting agency under its existing enforcement powers.
(g) Nothing in this section is intended to regulate the contracting practices of any local jurisdiction.
(h) This section shall be construed so as not to conflict with applicable federal laws, rules, or regulations. In the event that a court or agency of competent jurisdiction holds that federal law, rule, or regulation invalidates any clause, sentence, paragraph, or section of this code or the application thereof to any person or circumstances, it is the intent of the state that the court or agency sever that clause, sentence, paragraph, or section so that the remainder of this section shall remain in effect.
SEC. 79.
Section 10295.35 of the Public Contract Code is amended to read:10295.35.
(a) (1) Notwithstanding any other law, a state agency shall not enter into any contract for the acquisition of goods or services in the amount of one hundred thousand dollars ($100,000) or more with a contractor that, in the provision of benefits, discriminates between employees on the basis of an employee’s or dependent’s actual or perceived gender identity, including, but not limited to, the employee’s or dependent’s identification as transgender.(2) For purposes of this section, “contract” includes contracts with a cumulative amount of one hundred thousand dollars ($100,000) or more per contractor in each fiscal year.
(3) For purposes of this section, an employee health
plan is discriminatory if the plan is not consistent with Section 1365.5 of the Health and Safety Code and Section 10140 of the Insurance Code.
(4) The requirements of this section shall apply only to those portions of a contractor’s operations that occur under any of the following conditions:
(A) Within the state.
(B) On real property outside the state if the property is owned by the state or if the state has a right to occupy the property, and if the contractor’s presence at that location is connected to a contract with the state.
(C) Elsewhere in the United States where work related to a state contract is being performed.
(b) Contractors shall treat as confidential, to the maximum
extent allowed by law or by the requirement of the contractor’s insurance provider, any request by an employee or applicant for employment benefits or any documentation of eligibility for benefits submitted by an employee or applicant for employment.
(c) After taking all reasonable measures to find a contractor that complies with this section, as determined by the state agency, the requirements of this section may be waived under any of the following circumstances:
(1) There is only one prospective contractor willing to enter into a specific contract with the state agency.
(2) The contract is necessary to respond to an emergency, as determined by the state agency, that endangers the public health, welfare, or safety, or the contract is necessary for the provision of essential services, and no entity that complies
with the requirements of this section capable of responding to the emergency is immediately available.
(3) The requirements of this section violate, or are inconsistent with, the terms or conditions of a grant, subvention, or agreement, if the agency has made a good faith attempt to change the terms or conditions of any grant, subvention, or agreement to authorize application of this section.
(4) The contractor is providing wholesale or bulk water, power, electricity, or natural gas, methane, the
conveyance or transmission of the same, or ancillary services, as required for ensuring reliable services in accordance with good utility practice, if the purchase of the same cannot practically be accomplished through the standard competitive bidding procedures and the contractor is not providing direct retail services to end users.
(d) (1) A contractor shall not be deemed to discriminate in the provision of benefits if the contractor, in providing the benefits, pays the actual costs incurred in obtaining the benefit.
(2) If a contractor is unable to provide a certain benefit, despite taking reasonable measures to do so, the contractor shall not be deemed to discriminate in the provision of benefits.
(e) (1) Every contract subject to this chapter shall contain a statement
by which the contractor certifies that the contractor is in compliance with this section.
(2) The department or other contracting agency shall enforce this section pursuant to its existing enforcement powers.
(3) (A) If a contractor falsely certifies that it is in compliance with this section, the contract with that contractor shall be subject to Article 9 (commencing with Section 10420), unless, within a time period specified by the department or other contracting agency, the contractor provides to the department or agency proof that it has complied, or is in the process of complying, with this section.
(B) The application of the remedies or penalties contained in Article 9 (commencing with Section 10420) to a contract subject to this chapter shall not preclude the application of any existing
remedies otherwise available to the department or other contracting agency under its existing enforcement powers.
(f) Nothing in this section is intended to regulate the contracting practices of any local jurisdiction.
(g) This section shall be construed so as not to conflict with applicable federal laws, rules, or regulations. In the event that a court or agency of competent jurisdiction holds that federal law, rule, or regulation invalidates any clause, sentence, paragraph, or section of this code or the application thereof to any person or circumstances, it is the intent of the state that the court or agency sever that clause, sentence, paragraph, or section so that the remainder of this section shall remain in effect.
SEC. 80.
Section 10295.5 of the Public Contract Code is amended to read:10295.5.
(a) Notwithstanding any other law, a state agency shall not acquire or(b) Notwithstanding any other law, a state agency shall not contract with a person who is not a surface mining operator, but who is
supplying or utilizing using sand, gravel, aggregates, or other minerals, to perform work for, or supply materials to, a state agency, unless the operation is identified in the list published pursuant to subdivision (b) of Section 2717 of the Public Resources Code.
(c) For purposes of this section, “minerals” means any naturally occurring chemical element or compound, or groups of elements and compounds, formed from inorganic processes and organic substances, including, but not limited to, coal, peat, and bituminous rock, but excluding geothermal resources, natural gas, methane,
and petroleum.
(d) The requirements of this section shall apply to mining operations on federal lands or Indian lands that are subject to the Surface Mining and Reclamation Act of 1975 (Chapter 9 (commencing with Section 2710) of Division 2 of the Public Resources Code) pursuant to a memorandum of understanding between the Department of Conservation and the federal agency having jurisdiction over the lands.
SEC. 81.
Section 10299.1 of the Public Contract Code is amended to read:10299.1.
(a) Notwithstanding any other law, the director shall operate the Natural Gas Services Program to consolidate and address the needs of multiple state agencies for the procurement of(b) Procurement of natural gas methane and related services is vital to public sector facilities in California and, due to the volumes and costs involved, this
section authorizes the following:
(1) The director shall make the services of the department with respect to the acquisition of natural gas methane and related services available, under agreed upon terms and conditions, to any city, county, city and county, district, or other local governmental body, and to any nonprofit hospital or educational institution that expends public funds.
(2) The department is authorized to enter into interagency agreements with the entities listed in paragraph (1) for the acquisition of natural gas
methane and related services. The department may enter into contracts, master agreements, multiple award schedules, cooperative agreements, agreements with entities outside the state, and other types of agreements that leverage the state’s buying power through the use of a competitive bidding process. The state shall not incur financial responsibility in connection with the contracting of nonstate agencies under this section.
(3) The department may buy, sell, exchange, transfer, or otherwise dispose of natural gas methane acquired by the department pursuant to this section, and may recover the department’s acquisition and other costs to operate the program through customer charges or fees.
(4) The department may enter into gas purchase transactions for a term longer than five years, if specifically approved by the director.
(5) The program shall adjust to changes in customer requirements and market conditions and create and manage an ongoing pool of gas suppliers.
(6) The department is authorized to provide additional services to customers related to the environmental aspects of energy use and the requirements related to greenhouse gas regulations, renewable energy requirements, and similar programs and requirements.
(c) Agencies that are in the executive branch of the state government, except the Department of Water Resources, shall use the department’s Natural Gas Services Program for noncore gas purchases of natural gas
methane to ensure maximum participation resulting in the best discounts and prices for the commodity. The director may allow exemptions to this requirement.
(d) For purposes of this section, “natural gas” “methane” includes, but is not limited to, natural gas, methane, biomethane, compressed natural gas,
methane, liquefied natural gas,
methane, and other energy commodity that is similar to natural gas, methane and related services, including, but not limited to, gas storage, gas transportation, and forward purchases of natural gas. methane.
(e) During any period in which a Budget Act has not been approved, the department shall continue to receive payment transfers from agencies that are not in the executive branch of the state government and agencies that are in the executive branch of state government that are able to pay because they operate with funds that
are continuously appropriated.
(f) The department is authorized to charge, collect, and hold funds from a customer that voluntarily requests prepaid long-term natural gas methane supplies, for a period not to exceed 20 years.
(g) The Department of General Services Natural Gas Services Program Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, the fund is hereby continuously appropriated to the department without regard to fiscal year, for the purposes of operating the Natural Gas Services Program.
(1) All revenues payable to the department for natural gas
methane and related services shall be deposited in this fund. Any payments from this fund shall only be made for those purposes described in and consistent with this section.
(2) The Natural Gas Services Program’s customer fee revenues cannot be shifted or borrowed from the fund.
(3) If at the end of any fiscal year, there are unexpended revenues, those revenues shall be retained in the fund and reserved for future Natural Gas Services Program expenses.
(h) Funding for the costs incurred by the department in administering this section shall be provided for in the annual Budget Act.
SEC. 82.
Section 2005 of the Public Resources Code is amended to read:2005.
“Minerals” means any naturally occurring chemical element or compound, or groups of elements and compounds, formed from inorganic processes and organic substances, including, but not limited to, coal, peat, and bituminous rock, but excluding geothermal resources,SEC. 83.
Section 3008 of the Public Resources Code is amended to read:3008.
(a) “Well” means any oil or gas well or well for the discovery of oil or gas; any well on lands producing or reasonably presumed to contain oil or gas; any well drilled for the purpose of injecting fluids or gas for stimulating oil or gas recovery, repressuring or pressure maintenance of oil or gas reservoirs, or disposing of waste fluids from an oil or gas field; any well used to inject or withdraw gas from an underground storage facility; or any well drilled within or adjacent to an oil or gas pool for the purpose of obtaining water to be used in production stimulation or repressuring operations.(b) “Prospect well” or “exploratory well” means any well drilled to extend a field or explore a new, potentially productive reservoir.
(c) “Active observation well” means a well being used for the sole purpose of gathering reservoir data, such as pressure or temperature in a reservoir being currently produced or injected by the operator. For a well to be an active observation well, the operator shall demonstrate to the division’s satisfaction that the well fulfills a need for gathering reservoir data, and the operator shall provide the division with a summary report of the type of data collected at least annually or as requested by the division.
(d) “Idle well” means any well that for a period of 24 consecutive months has not either produced oil or natural gas, methane, produced water to be used in production stimulation, or
been used for enhanced oil recovery, reservoir pressure management, or injection. For the purpose of determining whether a well is an idle well, production or injection is subject to verification by the division. An idle well continues to be an idle well until it has been properly abandoned in accordance with Section 3208 or it has been shown to the division’s satisfaction that, since the well became an idle well, the well has for a continuous six-month period either maintained production of oil or natural gas, methane, maintained production of water used in production stimulation, or been used for enhanced oil recovery, reservoir pressure management, or injection. An idle well does not include an active observation well.
(e) “Long-term idle well” means
any well that has been an idle well for eight or more years.
SEC. 84.
Section 3015 of the Public Resources Code is amended to read:3015.
For the purpose of implementing Section 503 of the Natural Gas Policy Act of 1978, the supervisor may make the determinations entrusted to state agencies having regulatory jurisdiction with respect to the production ofSEC. 85.
Section 3180 of the Public Resources Code is amended to read:3180.
(a) As used in this article, “gas storage well” means an active or idle well used primarily to inject(b) On or before January 1, 2018, the operators of all gas storage wells shall have commenced a mechanical integrity testing regime specified by the division. The testing regime shall include all of the following:
(1) Regular leak testing.
(2) Casing wall thickness inspection.
(3) Pressure test of the production casing.
(4) Any additional testing deemed necessary by the division to demonstrate the integrity of the well.
(c) All anomalies identified in the testing shall be immediately reported to the appropriate district office and explained to the supervisor’s satisfaction.
(d) (1) The division shall promulgate regulations that establish standards for the design, construction, and maintenance of all gas storage wells to ensure that integrity concerns with a gas storage well are identified and addressed before they can become a threat to life, health, property, the climate, or natural resources.
(2) The regulations shall require that gas storage wells be designed, constructed, and maintained to ensure that a single point of failure does not pose an immediate threat of loss of control of fluids, as determined by the supervisor.
(3) In developing the regulations, the division shall consider enhanced design, construction, and maintenance measures that could meet the standard in paragraph (2), including any of the following:
(A) Primary and secondary
mechanical well barriers to isolate the storage gas within the storage reservoir and transfer storage gas from the surface into and out of the storage reservoir.
(B) Production casing to the surface with the required integrity to contain reservoir pressure.
(C) Tubing and packer and production tree with the required integrity to contain reservoir pressure.
(D) Surface controlled subsurface safety valves or Christmas tree valves with the required integrity to contain reservoir pressure that halt flow through the well.
(E) Secondary barrier with overlapping cement casing between two concentric casings with good quality cement bond.
(F) Wellhead with annular valves and seals and the required
integrity to contain reservoir pressure.
(G) Casing with a hanger and seal assembly.
(H) Any other well construction requirements the supervisor determines would improve the protection of public health, safety, the environment, and natural resources.
(4) In developing the regulations, the division shall develop a schedule for ongoing mechanical integrity testing.
(e) In order to facilitate consistency, standardization, and training for site inspection and maintenance, to the extent that the regulations promulgated by the division pursuant to subdivision (d) address surface equipment associated with an underground gas storage facility, the division shall ensure that those regulations are consistent with comparable requirements in Parts 190 to 199,
inclusive, of Title 49 of the Code of Federal Regulations.
SEC. 86.
Section 3181 of the Public Resources Code is amended to read:3181.
(a) The operator of a gas storage well shall submit for the supervisor’s approval the following materials:(1) Data describing the gas storage project and gas storage wells that demonstrate that stored gas will be confined to the approved zone or zones. Updated data shall be provided to the division if conditions change or if more accurate data become available.
(2) A risk management plan to identify and plan for mitigation of all threats and hazards and potential threats and hazards associated with gas storage well operation in order to ensure internal and external mechanical integrity of a well, including site-specific information. The risk management plan shall provide for regular review and
revision, as needed, to ensure the plan appropriately reflects current conditions. The risk management plan shall include, but is not limited to, all of the following:
(A) A natural gas methane leak prevention and response program that addresses the full range of natural gas methane leaks possible at the facility with specific response plans that provide for immediate control of the leak. The operator shall consult with local emergency response entities on the response plans. The prevention and response program shall include, but is not limited to, all of the
following:
(i) A protocol for public notice of a large, uncontrollable leak to any potentially impacted community, as defined in the risk management plan, if the leak cannot be controlled within 48 hours of discovery by the operator.
(ii) Prepositioning, as feasible, and identification of materials and personnel necessary to respond to leaks. This shall include materials and equipment to respond to and stop the leak itself as well as to protect public health.
(iii) The identification of personnel responsible for notifying regulatory authorities with jurisdiction over the range of leaks possible.
(B) A plan for corrosion monitoring and evaluation.
(C) A schedule for regular well and
reservoir integrity assessments.
(D) An assessment of the risks associated with the gas storage well and its operation.
(E) Planned risk mitigation efforts.
(F) A regular maintenance program for the well and the portion of the facility within the division’s jurisdiction. The maintenance program shall include training for site personnel and proactive replacement of equipment at risk of failure to ensure safe operation.
(3) In addition to other factors deemed relevant by the supervisor, the risk management plan required in paragraph (2) shall consider all of the following:
(A) The facility’s distance from dwellings, other buildings intended for human occupancy, or other well-defined outside
areas where people may assemble such as campgrounds, recreational areas, or playgrounds.
(B) The risks to and from the well related to roadways, rights of way, railways, airports, and industrial facilities.
(C) Proximity to environmentally or culturally sensitive areas.
(D) The risks of well sabotage.
(E) The current and predicted development of the surrounding area.
(F) Topography and local wind patterns.
(b) All of the materials described in subdivision (a) shall be reported to the division according to a schedule approved by the supervisor. The operator shall not deviate from the programs, plans, and other conditions and
protocols contained in the materials without prior written approval by the supervisor.
SEC. 87.
Section 3186.3 of the Public Resources Code is amended to read:3186.3.
On or before July 1, 2021, in response to the independent root cause analysis of the 2015 well leak at the Aliso Canyon gas storage facility prepared by Blade Energy Partners dated May 16, 2019, and ordered by the supervisor and the Public Utilities Commission, the division shall review and, if necessary, revise its(a) Requirements for cathodic protection measures for well casings, where appropriate, on a well-by-well or
field-by-field basis.
(b) Requirements for well control plans for a gas storage field, that include the range of flow properties possible in the event of an uncontrolled well release.
(c) Requirements for investigating leaks and other pressure equipment integrity incidents that present a risk of leaks as determined by the division. This shall include reporting requirements to the division.
SEC. 88.
Section 3205.8 of the Public Resources Code is amended to read:3205.8.
(a) (1) Notwithstanding any other provision of this chapter, a person who acquires the right to operate a well or production facility, by purchase, transfer, assignment, conveyance, exchange, or other disposition, except a well that has an average daily production level that exceeds 15 barrels of oil or 60,000 cubic feet of(2) A person who acquires the right to operate more than one well or production facility, by purchase, transfer, assignment, conveyance, exchange, or other disposition, or who operates more than one well or production facility may file with the supervisor one blanket indemnity bond to cover all the operations in any of its wells in the state in lieu of an individual indemnity bond for each operation. The blanket
indemnity bond shall be executed by the operator, as principal, and by an authorized surety company, as surety, and shall be in substantially the same language and upon the same conditions as provided in Section 3204, except for the difference in the amount.
(b) A person who intends to acquire the right to operate a well or production facility, by purchase, transfer, assignment, conveyance, exchange, or other disposition, shall submit a request to the supervisor for a determination of the amount of the bond required pursuant to subdivision (a) before completing the acquisition and shall not complete the acquisition until the determination is received and the bond has been filed with the supervisor.
(c) The supervisor shall determine the amount of an individual indemnity bond required pursuant to subdivision (a) based on the supervisor’s determination of the full costs of plugging
and abandonment, decommissioning the facility, and site restoration using any reasonable method, including, but not limited to, consideration of the factors listed in subdivision (b) of Section 3205.3, or the cost estimation criteria described in subdivision (b) of Section 3205.7, or consultation with a contractor to obtain an estimate of the cost to plug and abandon the wells, decommission the facility, and complete site restoration. The supervisor shall determine the amount of a blanket indemnity bond required pursuant to subdivision (a) based on the sum total of combining the costs from the same determinations as individual indemnity bonds for each well or production facility covered by the blanket indemnity bond.
(d) In lieu of the bond required to be provided pursuant to subdivision (a), the operator may, with the written approval of the supervisor, provide the required security through an equally effective means of financial assurance,
which includes a deposit pursuant to Section 3205.5, an irrevocable letter of credit, or a fully funded trust fund, but does not include self-insurance or corporate guarantees. The required financial assurance may be obtained or funded by the transferor of the covered well.
(e) The department shall post on its internet website the information on all indemnity bond determinations made by the supervisor, and shall include for each determination the bond amount and calculations used.
SEC. 89.
Section 3227.6 of the Public Resources Code is amended to read:3227.6.
As used in Sections 3227 and 3227.5, the following terms have the following meaning:(a) “Field” means the same general surface area which that is underlain, or reasonably appears to be underlain, by one or more pools.
(b) “Pool” means an underground reservoir containing, or appearing at the time of determination to contain, a common accumulation of crude petroleum oil or natural gas
methane, or both. Each zone of a general structure which that is separated from any other zone in the structure is a separate pool.
SEC. 90.
Section 3300 of the Public Resources Code is amended to read:3300.
The unreasonable waste ofSEC. 91.
Section 3316.2 of the Public Resources Code is amended to read:3316.2.
“Pool” means an underground reservoir containing, or appearing at the time of determination to contain, a common accumulation of crude petroleum oil orSEC. 92.
Section 3500 of the Public Resources Code is amended to read:3500.
All persons, firms, corporations, and associations are prohibited from wilfully permittingSEC. 93.
Section 3501 of the Public Resources Code is amended to read:3501.
(a) Any person, firm, corporation, or association who digs, drills, excavates, constructs, or owns, or controls a well from which No
(b) A person, firm, corporation, or association who owns or controls land in which such a well is situated shall not wilfully permit natural gas methane flowing from the well wastefully or unnecessarily to escape into the
atmosphere.
SEC. 94.
Section 3503 of the Public Resources Code is amended to read:3503.
Each day during whichSEC. 95.
Section 3635.3 of the Public Resources Code is amended to read:3635.3.
“Pool” means an underground reservoir containing, or appearing at the time of determination to contain, a common accumulation of crude petroleum oil orSEC. 96.
Section 6245 of the Public Resources Code is amended to read:6245.
(a) Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018.(b) (1) Upon receipt of an application for a lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, the commission or local trustee shall provide notice of this application by including it as a separate
informational item on the agenda of the commission’s or local trustee’s next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, or modification shall be included in the agenda summary.
(2) Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, or modification until 180 days after the notification required in paragraph (1).
(c) Prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, the commission or
local trustee shall consider, at a minimum, the following:
(1) Whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2) Whether the lease renewal, extension, amendment, or modification provides a benefit to the state beyond additional lease revenues.
(3) Whether the lease renewal, extension, amendment, or modification will impact the volume of oil and gas that may be transported across state waters.
(d) (1) Any lease renewal, extension, amendment, or modification that will increase the volume of oil and gas conveyed across state waters shall not be approved at the same properly noticed public meeting at which the lease renewal,
extension, amendment, or modification is first presented.
(2) The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any lease renewal, extension, amendment, or modification that will increase the volume of oil and gas conveyed across state waters. Any lease subject to this section shall be approved by a vote of the commission or the governing board of the local trustee.
(e) Nothing in this section shall prohibit any of the following:
(1) The commission from issuing leases pursuant to Section 6243 or 6244.
(2) Any activity undertaken to repair or maintain any pipeline or other infrastructure used to convey oil or natural gas
methane or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas. methane.
(3) Any activity undertaken to convey oil or natural gas methane produced from state waters.
(f) The commission may establish regulations for the implementation of this section.
(g) For the
purposes of this section, the following terms have the following meanings:
(1) “Local trustee” means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2) “Pacific Outer Continental Shelf” means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3) “State waters” has the same meaning as defined in Section
36108.
SEC. 97.
Section 6827.5 of the Public Resources Code is amended to read:6827.5.
(a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and(b) Nothing in this section shall prohibit either of the following:
(1) Any activity undertaken to repair, relocate, or maintain any pipeline or other infrastructure used to convey oil or natural gas methane or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas. methane.
(2) Any activity undertaken to convey oil or natural gas
methane produced from state lands or waters.
(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.
(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.
(e) For purposes of this section, the following definitions apply:
(1) “Federally protected land” means land designated as a national monument, park, wilderness area, wildlife refuge, or wilderness study area.
(2) “Local trustee” means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary,
regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
SEC. 98.
Section 21080.25 of the Public Resources Code is amended to read:21080.25.
(a) For purposes of this section, the following definitions apply:(1) “Affordable housing” means any of the following:
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents or sales prices to levels affordable, as defined in Section 50052.5 or 50053 of the Health and Safety Code, to persons and families of moderate, lower, or very low income, as defined in Section 50079.5, 50093, or 50105 of the Health and Safety Code, respectively.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that had been occupied by tenants within five years from the date of approval of the development agreement by a primary tenant who was low income and did not leave voluntarily.
(2) “Bicycle facilities” includes, but is not limited to, bicycle parking, bicycle sharing facilities, and bikeways as defined in Section 890.4 of the Streets and Highways Code.
(3) “High-occupancy vehicle” means a vehicle with three or more occupants.
(4) “Highway” means a way or place of whatever nature, publicly maintained and open to the use of the public for purposes of vehicular travel. “Highway” includes a street.
(5) “Local agency” means a public transit operator, city, county, city and county,
special district, joint powers authority, local or regional transportation agency, or congestion management agency.
(6) “Part-time transit lanes” means designated highway shoulders that support the operation of transit vehicles during specified times and are not open to nonpublic transit vehicles at any time.
(7) “Project labor agreement” has the same meaning as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(8) “Public transit operator” has the same meaning as in Section 99210 of the Public Utilities Code.
(9) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(10) “Transit lanes” means street design elements that delineate space within the roadbed as exclusive to transit use, either full or part time.
(11) “Transit prioritization projects” means any of the following transit project types on highways or in the public right-of-way:
(A) Signal and sign changes, such as signal coordination, signal timing modifications, signal modifications, or the installation of traffic signs or new signals.
(B) The installation of wayside technology and onboard technology.
(C) The installation of ramp meters.
(D) The conversion to dedicated transit lanes, including transit queue jump or bypass lanes,
shared turning lanes and turn restrictions, the narrowing of lanes to allow for dedicated transit lanes or transit reliability improvements, or the widening of existing transit travel lanes by removing or restricting street parking.
(E) Transit stop access and safety improvements, including, but not limited to, the installation of transit bulbs and the installation of transit boarding islands.
(12) “Transportation demand management program” means a specific program of strategies, incentives, and tools to be implemented, including, with specified annual status reporting obligations, to reduce vehicle trips by providing opportunities for the public to choose sustainable travel options, such as transit, bicycle riding, or walking. A specific program of strategies, incentives, and tools includes, but is not limited to, any of the following:
(A) Provision of onsite electric vehicle charging stations in excess of applicable requirements.
(B) Provision of dedicated parking for car share or zero-emission vehicles, or both types of vehicles, in excess of applicable requirements.
(C) Provision of bicycle parking in excess of applicable requirements.
(b) This division does not apply to any of the following projects:
(1) Pedestrian and bicycle facilities that improve safety, access, or mobility, including new facilities, within the public right-of-way.
(2) Projects that improve customer information and wayfinding for transit riders, bicyclists, or pedestrians within the
public right-of-way.
(3) Transit prioritization projects.
(4) A project for the designation and conversion of general purpose lanes to high-occupancy vehicle lanes or bus-only lanes, or highway shoulders to part-time transit lanes, for use either during peak congestion hours or all day on highways with existing public transit service or where a public transit agency will be implementing public transit service as identified in a short range transit plan.
(5) A public project for the institution or increase of bus rapid transit, bus, or light rail service, including the construction or rehabilitation of stations, terminals, or existing operations facilities, which
that will be exclusively used by zero-emission, near-zero-emission, low oxide of nitrogen engine, compressed natural gas
methane fuel, fuel cell, or hybrid powertrain buses or light rail vehicles, on existing public rights-of-way or existing highway rights-of-way, whether or not the right-of-way is in use for public mass transit. The project shall be located on a site that is wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(6) (A) A public project to construct or maintain infrastructure or facilities to charge, refuel, or maintain zero-emission public transit buses, trains, or ferries, provided the project is carried out by a public transit agency in compliance with, the State Air Resources Board’s Innovative Clean Transit regulations (Article 4.3 (commencing with Section 2023) of Chapter 1 of Division 3 of Title 13 of the California Code of Regulations) or any regulations identified by the State Air Resources Board’s 2020 Mobile
Source Strategy, adopted on October 28, 2021, and the project is located on property owned by the local agency or within an existing public right-of-way or on property owned by a public or private utility.
(B) A lead agency applying an exemption pursuant to this paragraph for hydrogen refueling infrastructure or facilities necessary to refuel or maintain zero-emission public transit buses, trains, or ferries shall comply with clauses (i), (iii), and (iv) of subparagraph (D) of, and with subparagraph (E) of, paragraph (1) of subdivision (d).
(7) The maintenance, repair, relocation, replacement, or removal of any utility infrastructure associated with a project identified in paragraphs (1) to (6), inclusive.
(8) A project that consists exclusively of a combination of any of the components of a project identified in
paragraphs (1) to (7), inclusive.
(9) A planning decision carried out by a local agency to reduce or eliminate minimum parking requirements or institute parking maximums, remove or restrict parking, or implement transportation demand management requirements or programs.
(c) Except as provided in subdivision (g), a project exempt from this division under this section shall meet all of the following criteria:
(1) A local agency is carrying out the project and is the lead agency for the project.
(2) The project does not induce single-occupancy vehicle trips, add additional highway lanes, widen highways, or add physical infrastructure or striping to highways except for minor modifications needed for the efficient and safe movement of transit vehicles,
bicycles, or high-occupancy vehicles, such as extended merging lanes, shoulder improvements, or improvements to the roadway within the existing right of way. The project shall not include the addition of any auxiliary lanes.
(3) The construction of the project shall not require the demolition of affordable housing units.
(d) (1) For a project exceeding one hundred million dollars ($100,000,000), a project exempt from this division under this section shall also meet all of the following:
(A) The project is incorporated in a regional transportation plan, sustainable communities strategy, general plan, or other plan that has undergone a programmatic-level environmental review pursuant to this division within 10 years of the approval of the project.
(B) The project’s construction impacts are fully mitigated consistent with applicable law.
(C) (i) The lead agency shall complete and consider the results of a project business case and a racial equity analysis. The Office of Planning and Research may set guidelines for the project business case and the racial equity analysis or delegate that authority to metropolitan planning organizations.
(ii) The project business case required under this subparagraph shall set forth the rationale for why the project should be implemented to solve a problem or address an opportunity, outline strategic goals and objectives of the project, evaluate other options to achieve the project’s objectives, describe the economic costs and benefits of the project, describe the financial implications of the project, and
establish what is required to deliver and operate the project.
(iii) The racial equity analysis required under this subparagraph shall identify the racial equity impacts of the project, identify who will benefit from and be burdened by the project, and, where significant or disproportionate impacts exist, suggest strategies, designs, or actions to mitigate those impacts.
(D) The lead agency shall hold noticed public meetings as follows:
(i) Before determining that a project is exempt pursuant to this section, the lead agency shall hold at least three noticed public meetings in the project area to hear and respond to public comments.
(ii) At least one of the three public meetings shall review the project business case and the racial equity analysis. The
review of these documents does not inhibit or preclude application of this section.
(iii) The lead agency shall conduct at least two noticed public meetings annually during project construction for the public to provide comments.
(iv) The public meetings held pursuant to clauses (i) to (iii), inclusive, shall be in the form of either a public community planning meeting held in the project area or in the form of a regularly scheduled meeting of the governing body of the lead agency.
(E) The lead agency shall give public notice of the meetings in subparagraph (D) to the last known name and address of all the organizations and individuals that have previously requested notice and shall also give the general public notice using at least one of the following procedures:
(i) Publication of the notice in a newspaper of general circulation in the area affected by the project. If more than one area will be affected, the notice shall be published in the newspaper of largest circulation from among the newspapers of general circulation in those areas.
(ii) Posting of the notice onsite and offsite in the area where the project is located.
(iii) Posting of the notice on the lead agency’s internet website and social media accounts.
(2) In addition to the requirements of paragraph (1), for a project described in that paragraph for which at least 50 percent of the project or project’s stops and stations are located in an area that is at risk of residential displacement and that will have a maximum of 15-minute peak headways, the local agency shall complete an analysis of
residential displacement and suggest antidisplacement strategies, designs, or actions. For a project subject to this paragraph, the lead agency shall define or identify areas at risk of residential displacement.
(e) For a project exceeding fifty million dollars ($50,000,000), a project exempt from this division under this section shall also comply with clauses (i), (iii), and (iv) of subparagraph (D) of, and with subparagraph (E) of, paragraph (1) of subdivision (d).
(f) (1) (A) Except as provided in subdivision (g), in addition to the requirements of subdivision (c), following the granting of an exemption under this section, the lead agency shall take an action at a public meeting of its governing board to certify that the project will be completed by a skilled and trained workforce.
(B) Subparagraph (A) does not apply if the lead agency has an existing policy or certification approved by its governing board that requires the use of a skilled and trained workforce to complete the project if the lead agency is a signatory to a project labor agreement that will require the use of a skilled and trained workforce on the project.
(2) (A) Except as provided in subparagraph (B), for a project that is exempted under this section, the lead agency shall not enter into a construction contract with any entity unless the entity provides to the lead agency an enforceable commitment that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or a contract that falls within an apprenticeship occupation in the building and construction trades in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the
Public Contract Code.
(B) Subparagraph (A) does not apply if any of the following requirements are met:
(i) The lead agency has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project to use a skilled and trained workforce and the entity has agreed to be bound by that project labor agreement.
(ii) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the lead agency before January 1, 2021.
(iii) The entity contracted to perform the project entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project to use a skilled and trained workforce.
(g) Subdivisions (c) and (f) do not apply to a project described in paragraph (9) of subdivision (b).
(h) If the lead agency determines that a project is not subject to this division pursuant to this section, and the lead agency determines to carry out that project, the lead agency shall file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the project is located in the manner specified in subdivisions (b) and (c) of Section 21152.
(i) (1) The amendments made to paragraph (5) of subdivision (b) by the measure adding this paragraph may apply to projects for which a lead agency has filed a notice of exemption under this section before January 1, 2023.
(2) For projects for which a
lead agency has filed a notice of exemption under this section before January 1, 2023, notwithstanding subdivision (d), as it read on December 31, 2022, the lead agency may certify that the project will be completed by a skilled and trained workforce after the granting of the exemption under this section or the lead agency may demonstrate compliance with subparagraph (B) of paragraph (1) of subdivision (f).
(j) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 99.
Section 21080.40 of the Public Resources Code is amended to read:21080.40.
(a) For purposes of this section, the following definitions apply:(1) “Affordable housing project” means a project consisting of multifamily residential uses only or a mix of multifamily residential and nonresidential uses, with at least two-thirds of the square footage of the project designated for residential use, and that satisfies all of the following requirements:
(A) All of the residential units within the project, excluding managers’ units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code.
(B) (i) The project meets the labor standards set forth in
Section 65912.130 of the Government Code.
(ii) In addition to clause (i), for a project with 50 or more residential units, the project meets the labor standards set forth in Section 65912.131 of the Government Code.
(C) The project is located on a legal parcel or parcels in any of the following locations:
(i) In a city where the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or in an unincorporated area, and the legal parcel or parcels are wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(ii) Within one-half mile walking distance to either a high-quality transit corridor or a major transit stop.
(iii) In a very low vehicle travel area.
(iv) Proximal to six or more amenities pursuant to paragraph (3) as of the date of submission of the application for the project.
(D) Parcels that are developed with urban uses adjoin at least 75 percent of the perimeter of the project site or at least three sides of a foursided project site. For purposes of this paragraph, parcels that are only separated by a street or highway shall be considered to be adjoined.
(2) “High-quality transit corridor” has the same meaning as set forth in subdivision (b) of Section 21155.
(3) “Proximal” to an amenity means either of the following:
(A) Within
one-half mile of any of the following amenities:
(i) A bus station.
(ii) A ferry terminal.
(B) Within one mile, or for a parcel in a rural area, as defined in Section 50199.21 of the Health and Safety Code, within two miles, of any of the following amenities:
(i) A supermarket or grocery store.
(ii) A public park.
(iii) A community center.
(iv) A pharmacy or drugstore.
(v) A medical clinic or hospital.
(vi) A public library.
(vii) A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(4) “Vacant site” means a site without any houses, offices, buildings, or other significant improvements on it.
(5) (A) “Very low vehicle travel area” means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita.
(B) For purposes of subparagraph (A), “area” may include a travel analysis zone, hexagon, or grid.
(C) For the purposes of determining “regional vehicle miles
traveled per capita” pursuant to subparagraph (A), a “region” is the entirety of incorporated and unincorporated areas governed by a multicounty or single-county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization.
(b) Subject to subdivision (c), this division does not apply to any of the following:
(1) The issuance of an entitlement by a public agency for an affordable housing project.
(2) An action to lease, convey, or encumber land owned by a public agency for an affordable housing project.
(3) An action to facilitate the lease, conveyance, or encumbrance of land owned or to be purchased by a public agency for an affordable
housing project.
(4) Rezoning, specific plan amendments, or general plan amendments required specifically and exclusively to allow the construction of an affordable housing project.
(5) An action to provide financial assistance in furtherance of implementing an affordable housing project.
(c) Subdivision (b) applies if the action described in subdivision (b) requires the affordable housing project to meet all of the following requirements:
(1) The affordable housing project will be subject to a recorded California Tax Credit Allocation Committee regulatory agreement.
(2) The affordable housing project site can be adequately served by existing utilities or extensions.
(3) A public agency confirms all of the following:
(A) The project site satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4 of the Government Code.
(B) For a vacant site, the project site does not contain tribal cultural resources that could be affected by the development that were found pursuant to a consultation described in Section 21080.3.1 and the effects of which cannot be mitigated pursuant to the process described in Section 21080.3.2.
(C) (i) The development proponent has completed a phase I environmental assessment, as defined in Section 25319.1 of the Health and Safety Code. If a recognized environmental condition is found, the development
proponent shall undertake a preliminary endangerment assessment, as defined in Section 25319.5 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(ii) If a release of a hazardous substance is found to exist on the site, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(iii) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal
requirements.
(D) For a project site where multifamily housing is not a permitted use, all of the following are met:
(i) None of the housing is located within 500 feet of a freeway, as defined in Section 332 of the Vehicle Code.
(ii) None of the housing is located within 3,200 feet of a facility that actively extracts or refines oil or natural gas. methane.
(iii) The project site is not within a very high fire hazard severity zone, as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 or as designated pursuant to
subdivisions (a) and (b) of Section 51179 of the Government Code.
(d) If a lead agency determines that an activity is not subject to this division pursuant to this section and determines to approve or carry out the activity, the lead agency shall file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the activity will occur in the manner specified in subdivisions (b) and (c) of Section 21108 or subdivisions (b) and (c) of Section 21152.
(e) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.
SEC. 100.
Section 21151.8 of the Public Resources Code is amended to read:21151.8.
(a) An environmental impact report shall not be certified or a negative declaration shall not be approved for a project involving the purchase of a schoolsite or the construction of a new elementary or secondary school by a school district unless all of the following occur:(1) The environmental impact report or negative declaration includes information that is needed to determine if the property proposed to be purchased, or to be constructed upon, is any of the following:
(A) The site of a current or former hazardous waste disposal site or solid waste disposal site and, if so, whether the wastes have been removed.
(B) A hazardous
substance release site identified by the Department of Toxic Substances Control in a current list adopted pursuant to Article 5 (commencing with Section 78760) of Chapter 4 of Part 2 of Division 45 of the Health and Safety Code for removal or remedial action pursuant to Part 2 (commencing with Section 78000) of Division 45 of the Health and Safety Code.
(C) A site that contains one or more pipelines, situated underground or aboveground, that carries hazardous substances, extremely hazardous substances, or hazardous wastes, unless the pipeline is a natural gas methane line that is used only to supply natural gas
methane to that school or neighborhood, or other nearby schools.
(D) A site that is within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor.
(2) (A) The school district, as the lead agency, in preparing the environmental impact report or negative declaration has notified in writing and consulted with the administering agency in which the proposed schoolsite is located, pursuant to Section 2735.3 of Title 19 of the California Code of Regulations, and with any air pollution control district or air quality management district having jurisdiction in the area, to identify both permitted and nonpermitted facilities within that district’s authority, including, but not limited to, freeways and busy traffic corridors, large agricultural operations, and railyards, within one-fourth of a
mile of the proposed schoolsite, that might reasonably be anticipated to emit hazardous emissions or handle hazardous or extremely hazardous substances or waste. The notification by the school district, as the lead agency, shall include a list of the locations for which information is sought.
(B) Each administering agency, air pollution control district, or air quality management district receiving written notification from a lead agency to identify facilities pursuant to subparagraph (A) shall provide the requested information and provide a written response to the lead agency within 30 days of receiving the notification. The environmental impact report or negative declaration shall be conclusively presumed to comply with subparagraph (A) as to the area of responsibility of an agency that does not respond within 30 days.
(C) If the school district, as a lead agency, has carried
out the consultation required by subparagraph (A), the environmental impact report or the negative declaration shall be conclusively presumed to comply with subparagraph (A), notwithstanding any failure of the consultation to identify an existing facility or other pollution source specified in subparagraph (A).
(3) The governing board of the school district makes one of the following written findings:
(A) Consultation identified no facilities of this type or other significant pollution sources specified in paragraph (2).
(B) The facilities or other pollution sources specified in paragraph (2) exist, but one of the following conditions applies:
(i) The health risks from the facilities or other pollution sources do not and will not constitute an actual or
potential endangerment of public health to persons who would attend or be employed at the proposed school.
(ii) Corrective measures required under an existing order by another agency having jurisdiction over the facilities or other pollution sources will, before the school is occupied, result in the mitigation of all chronic or accidental hazardous air emissions to levels that do not constitute an actual or potential endangerment of public health to persons who would attend or be employed at the proposed school. If the governing board makes a finding pursuant to this clause, it shall also make a subsequent finding, prior to before occupancy of the school, that the emissions have been so mitigated.
(iii) For a schoolsite with a boundary that is within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor, the governing board of the school district determines, through analysis pursuant to paragraph (2) of subdivision (b) of Section 44360 of the Health and Safety Code, based on appropriate air dispersion modeling, and after considering any potential mitigation measures, that the air quality at the proposed site is such that neither short-term nor long-term exposure poses significant health risks to pupils.
(C) The facilities or other pollution sources specified in paragraph (2) exist, but conditions in clause (i), (ii), or (iii) of subparagraph (B) cannot be met, and the school district is unable to locate an alternative site that is suitable due to a severe shortage of sites that meet the requirements in subdivision (a) of Section 17213 of the
Education Code. If the governing board makes this finding, the governing board shall adopt a statement of overriding considerations pursuant to Section 15093 of Title 14 of the California Code of Regulations.
(b) As used in this section, the following definitions shall apply:
(1) “Hazardous substance” means any substance defined in subdivision (a) of Section 78075 of the Health and Safety Code.
(2) “Extremely hazardous substances” means an extremely hazardous substance as defined pursuant to paragraph (2) of subdivision (i) of Section 25532 of the Health and Safety Code.
(3) “Hazardous waste” means any waste defined in Section 25117 of the Health and Safety Code.
(4) “Hazardous waste
disposal site” means any site defined in Section 25114 of the Health and Safety Code.
(5) “Hazardous air emissions” means emissions into the ambient air of air contaminants that have been identified as a toxic air contaminant by the State Air Resources Board or by the air pollution control officer for the jurisdiction in which the project is located. As determined by the air pollution control officer, hazardous air emissions also means emissions into the ambient air from any substances identified in subdivisions (a) to (f), inclusive, of Section 44321 of the Health and Safety Code.
(6) “Administering agency” means an agency authorized pursuant to Section 25502 of the Health and Safety Code to implement and enforce Chapter 6.95 (commencing with Section 25500) of Division 20 of the Health and Safety Code.
(7) “Handle”
means handle as defined in Article 1 (commencing with Section 25500) of Chapter 6.95 of Division 20 of the Health and Safety Code.
(8) “Facilities” means any source with a potential to use, generate, emit, or discharge hazardous air pollutants, including, but not limited to, pollutants that meet the definition of a hazardous substance, and whose process or operation is identified as an emission source pursuant to the most recent list of source categories published by the California Air Resources Board.
(9) “Freeway or other busy traffic corridors” means those roadways that, on an average day, have traffic in excess of 50,000 vehicles in a rural area, as defined in Section 50101 of the Health and Safety Code, and 100,000 vehicles in an urban area, as defined in Section 50104.7 of the Health and Safety Code.
SEC. 101.
Section 25000.1 of the Public Resources Code is amended to read:25000.1.
(a) The Legislature further finds and declares that, in addition to their other ratepayer protection objectives, a principal goal of(b) The Legislature further finds and declares that, in addition to any appropriate investments in energy production, electrical and natural gas methane utilities should seek to exploit all practicable and cost-effective conservation and improvements in the efficiency of energy use and distribution that offer equivalent or better system reliability,
reliability and which that are not being exploited by any other entity.
(c) In calculating the cost effectiveness of energy resources, including conservation and load management options, the commission shall include a value for any costs and benefits to the environment, including air quality. The commission shall ensure that any values it develops pursuant to this section are consistent with values developed by the Public Utilities Commission pursuant to Section 701.1 of the Public Utilities Code. However, if the commission determines that a value developed pursuant to this subdivision is not consistent with a value developed by the Public Utilities Commission pursuant to subdivision (c) of Section 701.1 of the Public
Utilities Code, the commission may nonetheless use this value if, in the appropriate record of its proceedings, it states its reasons for using the value it has selected.
SEC. 102.
Section 25000.5 of the Public Resources Code is amended to read:25000.5.
(a) The Legislature finds and declares that overdependence on the production, marketing, and consumption of petroleum based fuels as an energy resource in the transportation sector is a threat to the energy security of the state due to continuing market and supply uncertainties. In addition, petroleum use as an energy resource contributes substantially to the following public health and environmental problems: air pollution, acid rain, global warming, and the degradation of California’s marine environment and fisheries.(b) Therefore, it is the policy of this state to fully evaluate the economic and environmental costs of petroleum use, and the economic and environmental costs of other transportation fuels, including the
costs and values of environmental impacts, and to establish a state transportation energy policy that results in the least environmental and economic cost to the state. In pursuing the “least environmental and economic cost” strategy, it is the policy of the state to exploit all practicable and cost-effective conservation and improvements in the efficiency of energy use and distribution, and to achieve energy security, diversity of supply sources, and competitiveness of transportation energy markets based on the least environmental and economic cost.
(c) It is also the policy of this state to minimize the economic and environmental costs due to the use of petroleum-based and other transportation fuels by state agencies. In implementing a least-cost economic and environmental strategy for state fleets, it is the policy of the state to implement practicable and cost-effective measures, including, but not necessarily limited to, the purchase of
the cleanest and most efficient automobiles and replacement tires, the use of alternative fuels in its fleets, and other conservation measures.
(d) For the purposes of this section, “petroleum based fuels” means fuels derived from liquid unrefined crude oil, including natural gas methane liquids, liquefied petroleum gas, or the energy fraction of methyl tertiary-butyl ether (MTBE) or other ethers that is not attributed to natural gas. methane.
SEC. 103.
Section 25121 of the Public Resources Code is amended to read:25121.
“Fuel” means petroleum, crude oil, petroleum product, coal,SEC. 104.
Section 25122 of the Public Resources Code is amended to read:25122.
“Gas utility” means any person engaged in, or authorized to engage in, distributing or transportingSEC. 105.
Section 25125 of the Public Resources Code is amended to read:25125.
“MajorSEC. 106.
Section 25126 of the Public Resources Code is amended to read:25126.
“Major marketer” means any person who sellsSEC. 107.
Section 25134 of the Public Resources Code is amended to read:25134.
“Cogeneration” means the sequential use of energy for the production of electrical and useful thermal energy. The sequence can be thermal use followed by(a) At least 5 percent of the cogeneration project’s total annual energy output shall be in the form of useful thermal energy.
(b) Where useful thermal energy follows power
electricity production, the useful annual power electricity output plus one-half the useful annual thermal energy output equals not less than 42.5 percent of any natural gas
methane and oil energy input.
SEC. 108.
Section 25140 of the Public Resources Code is amended to read:25140.
“Solar thermal powerplant” means a thermal powerplant in which 75 percent or more of the total energy output is from solar energy and the use of backup fuels, such as oil,SEC. 109.
Section 25228 of the Public Resources Code is amended to read:25228.
(a) The commission, in consultation with the Public Utilities Commission, cities, counties, special districts, and other stakeholders, shall evaluate and recommend policies and implementation strategies to overcome barriers to the deployment and use of geothermal heat pump and geothermal ground loop technologies. In evaluating these policies and strategies, the commission shall consider all of the following:(1) The quantitative benefits and costs to ratepayers specific to safer, more reliable, or less costly gas or electrical service and through greater energy efficiency, reduction of health and environmental impacts from air pollution, and reduction of greenhouse gas emissions related to electricity and natural gas
methane production and use, through the use of geothermal heat pump and geothermal ground loop technologies.
(2) The existing statutory and permit requirements that impact the use of geothermal heat pumps and geothermal ground loop technologies and any other existing legal impediments to the use of geothermal heat pump and geothermal ground loop technologies.
(3) The impact of the use of the geothermal heat pump and geothermal ground loop technologies on achieving the state’s goals pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) and achieving the state’s energy efficiency goals.
(b) The commission shall include the evaluations and recommendations made pursuant to this section in the
integrated energy policy report that is required to be adopted for calendar year 2013, pursuant to subdivision (a) of Section 25302.
SEC. 110.
Section 25300 of the Public Resources Code is amended to read:25300.
(a) The Legislature finds and declares that clean and reliable energy is essential to the health of the California economy and of vital importance to the health and welfare of the citizens of the state and to the environment.(b) The Legislature further finds and declares that government has an essential role to ensure that a reliable supply of energy is provided consistent with protection of public health and safety, promotion of the general welfare, maintenance of a sound economy, conservation of resources, and preservation of environmental quality.
(c) The Legislature further finds and declares that the state government requires at all times a complete and
thorough understanding of the operation of energy markets, including electricity, natural gas, methane, petroleum, and alternative energy sources, to enable it to respond to possible shortages, price shocks, oversupplies, or other disruptions.
(d) The Legislature further finds and declares that timely reporting, assessment, forecasting, and data collection activities are essential to serve the information and policy development needs of the Governor, the Legislature, public agencies, market participants, and the public.
(e) The Legislature further finds and declares that one of the objectives of this act is to encourage cooperation among the various state agencies with energy
responsibilities.
SEC. 111.
Section 25301 of the Public Resources Code is amended to read:25301.
(a) At least every two years, the commission shall conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. The commission shall use these assessments and forecasts to develop and evaluate energy policies and programs that conserve resources, protect the environment, ensure energy reliability, enhance the state’s economy, and protect public health and safety. To perform these assessments and forecasts, the commission may require the submission of demand forecasts, resource plans, market assessments, related outlooks, individual customer historic(b) In developing the assessments and forecasts prepared pursuant to subdivision (a), the commission shall do all of the following:
(1) Provide information about the performance of energy
industries.
(2) Develop and maintain the analytical capability sufficient to answer inquiries about energy issues from the government, market participants, and the public.
(3) Analyze, develop, and evaluate energy policies and programs.
(4) Provide an analytical foundation for regulatory and policy decisionmaking.
(5) Facilitate efficient and reliable energy markets.
SEC. 112.
Section 25303 of the Public Resources Code is amended to read:25303.
(a) As part of the report prepared pursuant to Section 25302, the commission shall conduct electricity and(1) Assessment of trends in electricity and natural gas methane supply and demand, and the outlook for wholesale and retail prices for commodity electricity and natural gas
methane under current market structures and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural gas methane demand, including annual, seasonal, and peak demand, and the factors leading to projected demand growth, including, but not limited to, projected population growth, urban development, industrial expansion and energy intensity of industries, energy demand for different building types, energy efficiency, and other factors influencing demand for electricity. With respect to long-range forecasts of the demand for natural gas,
methane, the report shall include an evaluation of average conditions, as well as best- and worst-case scenarios, and an evaluation of the impact of the increasing use of renewable resources on natural gas methane demand.
(3) Evaluation of the adequacy of electricity and natural gas methane supplies to meet forecasted demand growth. Assessment of the availability, reliability, and efficiency of the electricity and natural gas
methane infrastructure and systems, including, but not limited to, natural gas methane production capability both in and out of state, natural gas methane interstate and intrastate pipeline capacity, storage and use, and western regional and California electricity and transmission system capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas
methane
supply, demand, and infrastructure and resource additions on the electricity and natural gas methane
systems, public health and safety, the economy, resources, and the environment.
(5) Evaluation of the potential impacts of electricity and natural gas methane load management efforts, including end-user response to market price signals, as a means to ensure reliable operation of electricity and natural gas methane systems.
(6) Evaluation of whether electricity and natural gas
methane markets are adequately meeting public interest objectives including the provision of all of the following: economic benefits; competitive, low-cost reliable services; customer information and protection; and environmentally sensitive electricity and natural gas methane supplies. This evaluation may consider the extent to which California is an element within western energy markets, the existence of appropriate incentives for market participants to provide supplies and for consumers to respond to energy prices, appropriate identification of responsibilities of various market participants, and an assessment of long-term versus short-term market performance. To the extent this evaluation identifies market shortcomings, the commission shall propose market structure changes to
improve performance.
(7) Identification of impending or potential problems or uncertainties in the electricity and natural gas methane markets, potential options and solutions, and recommendations.
(b) Commencing November 1, 2003, and every two years thereafter, to be included in the integrated energy policy report prepared pursuant to Section 25302, the commission shall assess the current status of the following:
(1) The environmental performance of the electric generation facilities of the state, to include all of the following:
(A) Generation facility
efficiency.
(B) Air emission pollution control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and expected resource additions are likely to, displace or reduce the operation of existing facilities, including the environmental consequences of these changes.
(2) The geographic distribution of statewide environmental, efficiency, and socioeconomic benefits and drawbacks of existing generation facilities, including, but not limited to, the impacts on natural resources including wildlife habitat, air quality, and water resources, and the relationship to demographic factors. The assessment shall describe the socioeconomic and demographic factors that existed when the facilities were constructed and the current status of these factors. In addition, the report shall include
how expected or recent resource additions could change the assessment through displaced or reduced operation of existing facilities.
(c) The commission, in consultation with the Public Utilities Commission, shall make all reasonable adjustments to its energy demand forecasts conducted pursuant to Sections 25301 and 25302 to account for its findings of market conditions and existing baselines, and, in making those adjustments, may consider the results from subdivisions (b) and (d) of Section 381.2 of the Public Utilities Code.
SEC. 113.
Section 25303.5 of the Public Resources Code is amended to read:25303.5.
(a) This section shall be known, and may be cited, as the(b) Beginning November 1, 2015, and every four years thereafter, the commission shall, with the integrated energy policy report prepared pursuant to Section 25302, identify strategies to maximize the benefits obtained from natural gas, methane, including biomethane for purposes of this section, as an
energy source, helping the state realize the environmental and cost benefits afforded by natural gas. methane. As part of this report, the commission, at a minimum, shall identify strategies and options for each of the following:
(1) Making the best use of natural gas methane as a transportation fuel, as appropriate, including for the movement of freight, vessels, mass transit, and other commercial and passenger vehicle use and identifying methods to develop natural gas
methane refueling infrastructure.
(2) Determining the role of natural gas-fired
methane-fired generation as part of a resource portfolio, including, but not limited to, combined heat and power, and the impact of that role on meeting greenhouse gas targets.
(3) Taking the best advantage of natural gas methane as a low-emission resource, including potential zero and near-zero greenhouse gas emissions, natural gas, methane, and biogas options, taking into account the impact on electric
electrical system operations.
(4) Optimizing the role of natural gas
methane as a flexible and convenient end use energy source, including the efficient use of natural gas methane for heating, water heating, cooling, cooking, engine operation, and other end uses, and the optimization of appliances for these uses.
(5) Identifying effective methods by which the electric electrical and natural gas methane
industries can facilitate implementation of any of the strategies identified in this section.
(6) Determining the extent to which a long-term policy is needed to ensure adequate infrastructure and storage and developing strategies for pursuing additional infrastructure development to maintain or enhance pipeline and system reliability, including increased natural gas methane storage. In developing those strategies, the commission shall consider needed policies to protect against system capacity constraints, minimize system leakage and related emissions, mitigate investment risk associated with the long-term investment in infrastructure in an evolving energy market, and identify factors that could limit the ability to receive maximum benefits
from natural gas
methane as an energy resource.
(7) Determining the role that natural gas methane can play in the development of zero net energy buildings, as appropriate.
(8) Optimizing the methods by which the pursuit of these strategies can facilitate jobs development in the private sector, particularly in distressed areas.
(9) Optimizing the methods by which state and federal policy can facilitate any of the proposed strategies.
(10) Evaluating the incremental beneficial and adverse economic cost and environmental impacts of proposed
strategies, including life-cycle greenhouse gas emissions from the production, transportation, and use of natural gas, methane, based on authoritative, peer-reviewed, and science-based analysis or in consultation with the State Air Resources Board.
(c) In developing the strategies described in subdivision (b), the commission shall consult with the Public Utilities Commission, the State Water Resources Control Board, the Independent System Operator, the State Air Resources Board, the Department of Oil, Gas, and Geothermal Resources, and the Department of Conservation to obtain relevant input. The report is intended to assist in establishing state policy and does not independently change any statute, regulation, or regulatory decision.
(d) This section shall become inoperative on November 1, 2025, and, as of January 1, 2026, is repealed.
SEC. 114.
Section 25310 of the Public Resources Code is amended to read:25310.
(a) For purposes of this section, the following terms have the following meanings:(1) “End use” means the purpose for which energy is used, including, but not limited to, heating, cooling, or lighting, or class of energy uses upon which an energy efficiency program is focused, typically categorized by equipment purpose, equipment energy use intensity, or building type.
(2) “Energy efficiency savings” means reduced electricity or natural gas methane usage produced either by the installation of an energy efficiency
measure or the adoption of an energy efficiency practice that maintains at least the same level of end-use service or by conservation actions that reduce energy use by reducing the quantity of baseline energy services demanded.
(b) On or before November 1, 2007, and by November 1 of every third year thereafter, the commission in consultation with the Public Utilities Commission and local publicly owned electric utilities, in a public process that allows input from other stakeholders, shall develop a statewide estimate of all potentially achievable cost-effective electricity and natural gas methane efficiency savings and establish targets for statewide annual energy efficiency savings and demand reduction for the next 10-year period. The commission shall
base its estimate at least in part on information developed pursuant to Sections 454.55, 454.56, 715, 9505, 9615, and 9615.5 of the Public Utilities Code. The commission shall, for each electrical corporation and each gas corporation, include in the integrated energy policy report, a comparison of the public utility’s annual targets established pursuant to Sections 454.55 and 454.56, and the public utility’s actual energy efficiency savings and demand reductions.
(c) (1) On or before November 1, 2017, the commission, in collaboration with the Public Utilities Commission and local publicly owned electric utilities, in a public process that allows input from other stakeholders, shall establish annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas
methane final end uses of retail customers by January 1, 2030. The commission shall base the targets on a doubling of the midcase estimate of additional achievable energy efficiency savings, as contained in the California Energy Demand Updated Forecast, 2015-2025, adopted by the commission, extended to 2030 using an average annual growth rate, and the targets adopted by local publicly owned electric utilities pursuant to Section 9505 of the Public Utilities Code, extended to 2030 using an average annual growth rate, to the extent doing so is cost effective, feasible, and will not adversely impact public health and safety.
(2) The commission may establish targets for the purposes of paragraph (1) that aggregate energy efficiency savings from both electricity and natural gas
methane final end uses. Before establishing aggregate targets, the commission shall, in a public process that allows input from other stakeholders, adopt a methodology for aggregating electricity and natural gas methane final end-use energy efficiency savings in a consistent manner based on source of energy reduction and other relevant factors.
(3) In establishing the targets pursuant to paragraph (1), the commission shall assess the hourly and seasonal impact on statewide and local electricity demand.
(4) In assessing the feasibility and cost-effectiveness of energy efficiency savings for the purposes of paragraph (1), the commission and the Public
Utilities Commission shall consider the results of energy efficiency potential studies that are not restricted by previous levels of utility energy efficiency savings.
(5) The energy efficiency savings and demand reduction reported for the purposes of achieving the targets established pursuant to paragraph (1) shall be measured taking into consideration the overall reduction in normalized metered electricity and natural gas methane consumption where these measurement techniques are feasible and cost effective.
(d) The targets established in subdivision (c) may be achieved through energy efficiency savings and demand reduction resulting from a variety of programs that include, but are not
limited to, the following:
(1) Appliance and building energy efficiency standards developed and adopted pursuant to Section 25402.
(2) A comprehensive program to achieve greater energy efficiency savings in California’s existing residential and nonresidential building stock pursuant to Section 25943.
(3) Programs funded and authorized pursuant to the California Clean Energy Job Creation Act (Division 16.3 (commencing with Section 26200)).
(4) Programs funded by the Greenhouse Gas Reduction Fund established pursuant to Section 16428.8 of the Government Code.
(5) Programs funded and authorized pursuant to this division.
(6) Programs of electrical or gas corporations, or community choice aggregators, that provide financial incentives, rebates, technical assistance, and support to their customers to increase energy efficiency, authorized by the Public Utilities Commission.
(7) Programs of local publicly owned electric utilities that provide financial incentives, rebates, technical assistance, and support to their customers to increase energy efficiency pursuant to Section 385 of the Public Utilities Code.
(8) Programs of electrical or gas corporations, local publicly owned electric utilities, or community choice aggregators, that achieve energy efficiency savings through operational, behavioral, and retrocommissioning activities.
(9) Programs that save energy in final end uses by reducing distribution feeder service
voltage, known as conservation voltage reduction.
(10) Programs that save energy in final end uses by using cleaner fuels to reduce greenhouse gas emissions as measured on a lifecycle basis from the provision of energy services.
(11) Property Assessed Clean Energy (PACE) programs.
(e) Beginning with the 2019 edition of the integrated energy policy report and every two years thereafter, the commission shall provide recommendations and an update on progress toward achieving a doubling of energy efficiency savings in electricity and natural gas methane final end uses of retail customers by January 1, 2030, pursuant to paragraph (1)
of subdivision (c). The commission shall also include with the recommendations and update both of the following:
(1) An assessment of the effect of energy efficiency savings on electricity demand statewide, in local service territories, and on an hourly and seasonal basis.
(2) Specific strategies for, and an update on, progress toward maximizing the contribution of energy efficiency savings in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
SEC. 115.
Section 25320 of the Public Resources Code is amended to read:25320.
(a) The commission shall manage a data collection system for obtaining information necessary to develop the policy reports and analyses required by Sections 25301 to 25307, inclusive, the energy shortage contingency planning efforts in Chapter 8 (commencing with Section 25700), and to support other duties of the commission.(1) It is the intent of the Legislature to ensure that information needed to support the energy policy analysis developed by the commission is obtained from stakeholders in the most cost-effective and efficient manner.
(2) The commission is encouraged to do all of the following with respect to its data collection:
(A) Align the collection of data to be consistent with the schedule of the integrated energy policy report, to the extent practical.
(B) Eliminate unneeded and duplicative data submittals from stakeholders.
(C) Give full consideration to the potential burdens these data requests impose on the resources of the stakeholders whose information is being requested.
(b) The data collection system, adopted by regulation under Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and managed by the commission shall:
(1) Include a timetable for the submission of this information, so that the integrated energy policy report required by Section 25302 can be completed in an accurate and timely manner. The
commission is encouraged to align its timetable with the schedule of the integrated energy policy report, to the extent practical.
(2) Require a person to submit only information that is necessary to the development of the integrated energy policy report and analyses, and that the person can either be expected to acquire through his or her their market activities, or possesses or controls. Information collected pursuant to this section shall relate to the functional role of each category of market participant in that industry and the consumers within that industry.
(3) To the extent it satisfies the information needs of the commission, rely on the use of estimates and proxies, to the maximum
extent practicable, for some data elements using survey and research techniques, while for other information it shall obtain data from market participants using submissions consistent with their accounting records. In determining whether to rely upon estimates or participant provided data, the commission shall weigh the burden of compliance upon industry participants and energy consumers against the benefit of participant provided data for the public interest.
(4) To the extent it satisfies the information needs of the commission, rely on data, to the maximum extent practicable, that is reported to other government agencies or is otherwise available to the commission.
(c) Pursuant to the requirements of subdivision (b), the data collection system for electricity and natural gas
methane shall enumerate specific requirements for each category of market participants, including, but not limited to, private market participants, energy service providers, energy service companies, natural gas methane marketers, electric electrical utility and natural gas methane utility companies, independent generators, electric
electrical transmission entities, natural gas methane producers, natural gas
methane pipeline operators, importers and exporters of electricity and natural gas, methane, and specialized electric electrical or natural gas methane system operators. The commission may also collect information about consumers’ natural gas
methane and electricity use from their voluntary participation in surveys and other research techniques.
(d) Pursuant to the requirements of subdivision (b), the data collection system for nonpetroleum fuels and transportation technologies shall enumerate specific requirements for each category of market participant, including, but not limited to, fuel importers and exporters, fuel distributors and retailers, fuel pipeline operators, natural gas methane liquid producers, and transportation technology providers. The commission may also collect information about consumers’ nonpetroleum fuel and transportation technology use from their voluntary participation in surveys and other research techniques.
(e) The commission shall collect data for petroleum fuel pursuant to Chapter 4.5 (commencing with Section 25350). The commission may also collect information about consumers’ petroleum fuel use from consumers’ participation in surveys and other research techniques.
SEC. 116.
Section 25354 of the Public Resources Code is amended to read:25354.
(a) Each refiner and major marketer shall submit information each month to the commission in such form and extent as the commission prescribes pursuant to this section. For purposes of this section, the term “refiner” and “refinery” shall include refiners and refineries as defined in Sections 25127 and 25128, and also those persons and facilities that process renewable feedstocks instead of crude oil feedstocks and otherwise meet the definitions in Sections 25127 and 25128. The information shall be submitted within 30 days after the end of each monthly reporting period and shall include the following:(1) Refiners shall report, by volume, price, and type, for each of their refineries, feedstock inputs, origin of petroleum receipts, imports of finished petroleum
products and blendstocks and ethanol, including the source of those imports, exports of finished petroleum products and blendstocks and ethanol, including the destination of those exports and the entity receiving those exports, refinery outputs, refinery stocks, finished product supply and distribution, including all gasoline sold unbranded by the refiner, blender, or importer, and all current inventories of refined and unrefined petroleum products.
(2) Major marketers shall report, by volume, price, and type, on petroleum product receipts and the sources of these receipts, inventories of finished petroleum products and blendstocks and ethanol, distributions through branded and unbranded distribution networks, and exports of finished petroleum products and blendstocks and ethanol from the state.
(b) Each major oil producer, refiner, marketer, oil transporter, oil storer, pipeline
operator, or port through which refined gasoline is imported or exported, shall annually submit information to the commission in such form and extent as the commission prescribes pursuant to this section. The information shall be submitted within 30 days after the end of each reporting period, and shall include the following:
(1) Major oil transporters shall report on petroleum by reporting the capacities of each major transportation system, the amount transported by each system, and inventories thereof. The commission may prescribe rules and regulations that exclude pipeline and transportation modes operated entirely on property owned by major oil transporters from the reporting requirements of this section if the data or information is not needed to fulfill the purposes of this chapter. The provision of the information shall not be construed to increase or decrease any authority the Public Utilities Commission may otherwise have.
(2) Major oil storers shall report on storage capacity, inventories, receipts and distributions, and methods of transportation of receipts and distributions.
(3) Major oil producers shall, with respect to thermally enhanced oil recovery operations, report annually by designated oil field, the monthly use, as fuel, of crude oil and natural gas. methane.
(4) Refiners shall report on facility capacity, and utilization and method of transportation of refinery receipts and distributions.
(5) Major oil marketers shall report on facility capacity and methods of
transportation of receipts and distributions.
(6) Pipeline operators and port operators shall report their capacities for all pipelines and ports used to transport refined gasoline.
(7) All major oil producers, refiners, marketers, oil transporters, oil storers, pipeline operators, or port operators submitting information under this subdivision shall include in the report for each reporting period the full names of all persons or entities that directly or indirectly own 10 percent or more of the major oil producer, refiner, marketer, oil transporter, oil storer, pipeline operator, or port operator submitting the information.
(c) Each person required to report pursuant to subdivision (a) shall submit a projection each month of the information to be submitted pursuant to subdivision (a) for the quarter following the
month in which the information is submitted to the commission.
(d) In addition to the data required under subdivision (a), each integrated oil refiner that produces, refines, transports, and markets in interstate commerce and that supplies more than 500 branded retail outlets in California shall submit to the commission an annual industry forecast for Petroleum Administration for Defense, District V, covering Arizona, Nevada, Washington, Oregon, California, Alaska, and Hawaii. The forecast shall include the information to be submitted under subdivision (a), and shall be submitted by March 15 of each year. The commission may require California-specific forecasts only if the commission finds them necessary to carry out its responsibilities.
(e) The commission may by order or regulation modify the reporting period as to any individual item of information setting forth in the order or
regulation its reason for so doing.
(f) (1) Destination facilities shall submit to the commission, by deadlines set by the commission, the following information regarding crude oil transported to or within California via rail car or marine vessel:
(A) The route of transport within California.
(B) The marketable crude oil name.
(C) The loading facility, including the loading facility name, and the latitude, longitude, and state where the facility is located.
(D) The name of the destination facility, the type of facility, and the latitude and longitude where the facility is located.
(E) Whether the crude
oil is nonfloating oil, as defined in Section 8670.3 of the Government Code.
(2) The commission shall quarterly prepare and make available to the public a report based on the data collected pursuant to paragraph (1) that shall include, at a minimum, the routes of transport of crude oil within California, the types of crude oil transported over each of those routes, and the frequency with which nonfloating oil has been transported over each of those routes during the reporting period. The commission shall aggregate information used in a report prepared under this paragraph to the extent necessary to assure confidentiality if public disclosure of the specific information or data would result in unfair competitive disadvantage to the person supplying the information or would adversely affect market competition.
(3) The commission may require additional information to be submitted as
necessary to perform its responsibilities under this chapter.
(g) Any person required to submit information or data under this chapter, in lieu thereof, may submit a report made to any other governmental agency, if:
(1) The alternate report or reports contain all of the information or data required by this chapter.
(2) The person clearly identifies the specific provision of this chapter to which the alternate report is responsive.
(h) Each refiner shall submit to the commission, within 30 days after the end of each monthly reporting period, all of the following information in such form and extent as the commission prescribes:
(1) Monthly California weighted average prices and sales volumes
of finished leaded regular, unleaded regular, and premium motor gasoline sold through company-operated retail outlets, to other end-users, and to wholesale customers.
(2) Monthly California weighted average prices and sales volumes for residential sales, commercial and institutional sales, industrial sales, sales through company-operated retail outlets, sales to other end-users, and wholesale sales of No. 2 diesel fuel, No. 2 fuel oil, and any renewable fuels.
(3) Monthly California weighted average prices and sales volumes for retail sales and wholesale sales of No. 1 distillate, kerosene, finished aviation gasoline, kerosene-type jet fuel, No. 4 fuel oil, residual fuel oil with 1 percent or less sulfur, residual fuel oil with greater than 1 percent sulfur, and consumer grade propane.
(i) (1) Beginning the first week after January 1, 2004, and each week thereafter, an oil refiner, oil producer, petroleum product transporter, petroleum product marketer, petroleum product pipeline operator, and terminal operator, as designated by the commission, shall submit a report in the form and extent as the commission prescribes pursuant to this section. The commission may determine the form and extent necessary by order or by regulation.
(2) A report may include any of the following information:
(A) Receipts and inventory levels of crude oil and petroleum products at each refinery and terminal location.
(B) Amount of gasoline, diesel, jet fuel, blending components, and other petroleum products imported and exported.
(C) Amount of
gasoline, diesel, jet fuel, blending components, and other petroleum products transported intrastate by marine vessel.
(D) Amount of crude oil imported, including information identifying the source of the crude oil.
(E) The regional average of invoiced retailer buying price. This subparagraph does not either preclude or augment the current authority of the commission to collect additional data under paragraph (3) of subdivision (f).
(F) Copies of all contracts or agreements entered into, or amendments to contracts or agreements, with other oil refiners, oil producers, petroleum product transporters, petroleum product marketers, petroleum product pipeline operators, terminal operators, or any other entity that trades in petroleum products whether or not those entities take possession of petroleum products, as
designated by the commission, during the monthly reporting period, along with records of every transaction made under those contracts or agreements and the prices charged for those transactions.
(3) This subdivision is intended to clarify the commission’s existing authority under subdivision (f) to collect specific information. This subdivision neither precludes nor augments the existing authority of the commission to collect information.
(j) All importers of refined products and renewable fuels via marine vessel shall report to the commission, at least 96 hours before the arrival of a marine vessel delivery to California, all of the following information:
(1) The name of the product tanker or name of the barge, including associated tug name.
(2) The
loading location or locations for cargo.
(3) The volume by each type of transportation fuel, such as gasoline, gasoline blending components, diesel fuel, renewable diesel fuel, jet fuel, sustainable aviation fuel, biodiesel, and ethanol.
(4) The cargo landed cost, including the cost incurred to purchase, load, transport, and all other costs and fees to deliver, each type of transportation fuel, such as gasoline, gasoline blending components, diesel fuel, renewable diesel fuel, jet fuel, sustainable aviation fuel, biodiesel, and ethanol.
(5) The status of any transportation fuel as sold before discharge, the identity of the buyer for any presold product, and the sale price of any presold product.
(6) The planned discharge location, such as the marine
berth designation, or locations.
(7) The foreign, domestic, and intrastate marine movements of the vessel from the port of origin to the port of delivery of the cargo.
(k) Nonrefiners, such as proprietary storage companies, that commercially trade in gasoline, gasoline blending components, diesel fuel, or renewable diesel fuel inventory not subject to contractual supply obligations, shall submit weekly reports to the commission, starting 30 days after the effective date of the act adding this subdivision, that include the weekly inventory volume, by type, such as gasoline, gasoline blending components, diesel fuel, or renewable fuels, for each position holder by name of company, and copies of all contracts or agreements entered into with any refiners, oil producers, petroleum product transporters, petroleum product marketers, petroleum product pipeline operators, terminal
operators, or any other entity that trades in petroleum products whether or not those entities take possession of those products, as designated by the commission.
(l) Refiners and nonrefiners that consummate spot market transactions shall submit a daily report to the commission, starting 30 days after the effective date of the act adding this subdivision, that includes all of the following information for each transaction occurring during the preceding day:
(1) The identity of the spot market where the transaction occurred.
(2) Whether the transaction was reported to the Oil Price Information Service (OPIS), or any other price reporting service, and the time of the reporting.
(3) The date of the transaction.
(4) The time of the transaction.
(5) The contract identification number for the transaction.
(6) The position sequence number for the transaction.
(7) The contract position identification number for the transaction.
(8) The name, or nonanonymized identification of the executing trader for the transaction.
(9) The counterparty for the transaction, including company name and name or nonanonymized identification of the executing trader.
(10) Whether the reporting entity is the seller or buyer.
(11) The
broker, including company name and name or nonanonymized identification of the executing broker.
(12) The type of refined transportation fuel, such as gasoline, diesel, or jet fuel.
(13) The product name for each type of refined transportation fuel.
(14) The volume of each transaction in thousands of barrels, or specified unit of measurement if unable to be indicated in thousands of barrels.
(15) The invoiced volume of each transaction in thousands of barrels, or specified unit of measurement if unable to be indicated in thousands of barrels.
(16) The time and date the material that is the subject of the transaction is scheduled to be delivered or was delivered.
(17) The delivery location specified in the contract for the transaction and the actual delivery location.
(18) The method of transportation for the delivery, such as pipeline, marine vessel, or truck, and the name of the transport.
(19) The actual title transfer date.
(20) The contract subcycle, including descriptors such as “Any,” “L3,” “FH,” “BH,” “C1,” “C2,” “C3,” or “C4.”
(21) The type of pricing method, including exchange of futures for physical (EFP), fixed price, fixed date range, floating date range, reference formula, OPIS close, event-related date range, such as three days on and around delivery or discharge, or any other utilized
used method of pricing.
(22) The contract price formula, including the differential from any contract formula and the unit of measurement for any price differential.
(23) The pricing start and end dates for each contract.
(24) The price value of the contract.
(25) For EFP contracts, the name of the futures product, the contract month of the futures product expressed as the two-digit month and the two-digit year (MM-YY), and the price value of the futures product.
(m) It is the intent of the Legislature that all refiners shall, while protecting the health and safety of the public and employees, schedule planned maintenance and turnaround in a manner
that ensures minimum levels of transportation fuels in production or reserves necessary to prevent supply shortages or price spikes. To advance that purpose, refiners shall report maintenance activities for each refinery to the commission as follows:
(1) Notwithstanding any other law, a refiner shall notify the executive director of the commission of all plans to undertake turnaround and planned maintenance. A refiner’s notification shall include, at a minimum, all of the following information:
(A) A brief description of planned work.
(B) The scheduled start date.
(C) The scheduled return-to-service date.
(D) The individual process units involved.
(E) The name and operational capacity of each process unit.
(F) The estimated daily decrease in output of material or substance produced by the unit, such as gasoline, diesel, or jet fuel components.
(G) The projected quantity of contractual supply obligations for finished gasoline due during the planned maintenance event or turnaround.
(H) The drawdown of inventory levels of gasoline and gasoline blending components and other material or substance produced by the unit that are controlled by the refiner at the refinery and at other storage locations in California during the planned maintenance event or turnaround, the current levels of such inventories at the time notice is provided, and the anticipant levels of such inventories immediately before the
commencement of the planned maintenance event or turnaround.
(I) Imports of gasoline and gasoline blend components and other material or substance produced by the unit in preparation for or during the planned maintenance event.
(J) Planned purchases of gasoline and gasoline blending components and other material or substance produced by the unit from other market participants in California related to the planned maintenance event.
(K) Planned reductions of noncontracted sales of gasoline or other material or substance produced by the unit related to the planned maintenance event.
(2) The refiner’s notification shall be submitted to the executive director of the commission at least 120 days before the planned maintenance or turnaround.
(3) Before submitting its turnaround schedule notification to the Division of Occupational Safety and Health pursuant to Section 7872 of the Labor Code, each refiner shall submit its turnaround schedule to the executive director of the commission. When submitting its schedule to the division, each refiner shall indicate that, for each scheduled turnaround, the notification to the commission was submitted.
(4) For unplanned maintenance resulting in a shutdown of a refinery process of greater than 24 hours, submit initial and final reports as follows:
(A) The initial report, due within 48 hours of the initial outage, shall include all of the following information:
(i) The name and operational capacity of each process unit involved in the unplanned
outage.
(ii) The initial estimated daily decrease in output of gasoline, diesel, and jet fuel components from each process unit affected by the unplanned outage.
(iii) The current inventory levels of the material or substance produced by the unit affected by the unplanned outage that are controlled by the refiner at the refinery and at other storage locations in California during the unplanned maintenance event.
(iv) A description of the reason for the unplanned maintenance or outage.
(v) The projected duration of production reduction.
(B) The final report, due within 48 hours of the completion of repairs, shall include all of the following information:
(i) The return-to-service date.
(ii) The total decreased output of gasoline, diesel, and jet fuel components from each of the affected process units.
(iii) The total increased output from other process units by type of refined product to partially compensate for the reduced output from the process units affected by the unplanned outage.
(iv) The amount of material obtained from other sources that compensated for the decrease described in clause (ii) and enabled the refiner to cover for the loss of that production.
(v) The drawdown of inventory levels of any material or substance produced by the unit that are controlled by the refiner at the refinery and at other storage locations in
California during the unplanned maintenance event.
(5) Upon receipt of a notification under this subdivision, the executive director of the commission shall review the notification and may request any additional information from the refiner that is necessary for the commission to assess the potential effect of the planned maintenance event on the supply and prices of transportation fuels in the state.
(n) (1) Notwithstanding any other law, information in the notification provided to the commission by a refiner providing a notice or report of its planned maintenance, unplanned maintenance, or turnaround schedule, including notifications under subdivision (m) shall be considered confidential information not subject to public disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The
commission may share the information with other state agencies, including the Attorney General, only if the other state agency agrees to maintain the confidentiality of the information.
(2) The commission may adopt guidelines to prescribe the manner in which the executive director of the commission shall implement subdivision (m) at a commission business meeting. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to any regulations, guidelines, or other standards adopted by the commission pursuant to this paragraph.
(o) Refiners shall report annually to the commission their planned production levels and schedule for turnarounds and planned maintenance for the following 12 months, by month and by finished product.
(p) (1) The operator of any refinery in this state shall report to the Commission at least 12 months in advance if that refinery operator intends to permanently shut down, shut down to reconfigure, or sell a refinery in a transaction that may result in a refinery shutting down or reconfiguring.
(2) Upon receipt of a notice pursuant to paragraph (1), the commission shall notify the Legislature in a manner that does not disclose confidential information, if applicable.
(3) After the completion of the report by the commission required by Section 25371 and its submission to the Legislature, the commission may modify the notice required under this subdivision. The commission shall not reduce the notice period to less than 12 months.
SEC. 117.
Section 25355 of the Public Resources Code is amended to read:25355.
(a) For purposes of this section, the following definitions apply:(1) “Gross gasoline refining margin” means the difference, expressed in dollars per barrel, between the volume-weighted average price of wholesale gasoline sold by a refiner in the state and the average price of crude oil received by the refinery.
(2) “Net gasoline refining margin” means the gross gasoline refining margin minus the refinery’s operational costs.
(3) “Operational costs” means costs, expressed in dollars per barrel, necessarily incurred by the operator of a refinery in the state to produce gasoline meeting California specifications, including, but not limited
to, costs of labor, electricity, natural gas, methane, chemicals, maintenance, hydrogen, and other intermediate oil products, federal renewable identification numbers, obligation costs, capital investments, logistics costs, and additive costs.
(b) Within 30 days of the end of each calendar month, the operator of each refinery operating in the state that produces gasoline meeting California specifications shall submit to the commission a report for the refinery containing all of the following information:
(1) The volume, in barrels, of crude oil received in that month, separated into domestic and foreign subtotals.
(2) The
volume-weighted average crude oil acquisition cost paid for crude oil that is received and intended to be refined during that month, separated into domestic and foreign crude oil acquisition costs.
(3) The volume in barrels of refined gasoline received or imported in that month from entities other than the refiner.
(4) The volume-weighted average cost of any refined gasoline received or imported by a refiner during that month.
(5) The quantity, in barrels, of wholesale gasoline meeting California specifications sold and the corresponding volume-weighted average prices, less all applicable local, state, and federal taxes, separated by unbranded rack sales, branded rack sales, bulk sales, spot pipeline sales, and dealer tankwagon (DTW) sales in that month.
(6) Separate quantification of the volume-weighted fees or estimated valuations of costs embedded in all wholesale gasoline sales associated with the low-carbon fuel standard (LCFS) and associated with the cap and trade cap-at-the-rack (CAR) program, for each volume-weighted average price for: (A) unbranded rack sales, (B) branded rack sales, (C) bulk sales, (D) spot pipeline sales, and (E) DTW sales, in that month.
(7) The gross gasoline refining margin per barrel of gasoline sold in that month.
(8) The operational costs per barrel of gasoline sold in that month, including a complete description and amount of each category of cost identified in paragraph (3) of subdivision (a) and any other category of cost.
(9) The net gasoline refining margin per barrel of gasoline sold in that month.
(c) Within 45 days of the end of each calendar month, the commission shall post on its internet website all of the following:
(1) The gross gasoline refining margin data reported pursuant to this section for that month, and any gross gasoline refining margin independently calculated by the commission, as a volume-weighted gross refining margin in aggregate for all the combined refineries in the state.
(2) The gross gasoline refining margin data reported for that month, and any gross gasoline refining margin independently calculated by the commission, in aggregate for each refiner with more than one refinery operating within California.
(3) The net gasoline refining margin data reported pursuant to this section for that month, and any net gasoline refining
margin independently calculated by the commission, as a volume-weighted net refining margin in aggregate for all the combined refineries in the state.
(4) The net gasoline refining margin data reported for that month, and any net gasoline refining margin independently calculated by the commission, in aggregate for each refiner with more than one refinery operating within the state.
(5) The aggregated data submitted pursuant to paragraphs (1) through (4), inclusive, of subdivision (b) for that month.
SEC. 118.
Section 25401.2 of the Public Resources Code is amended to read:25401.2.
(a) As part of the report required by Section 25302, the commission shall develop and update an inventory of current and potential cost-effective opportunities in each utility’s service territory to improve efficiencies and to help utilities manage loads in all sectors of(b) The commission shall develop and maintain the inventory in consultation with electric electrical and gas utilities, the Public Utilities Commission, academic institutions, and other interested parties.
SEC. 119.
Section 25401.5 of the Public Resources Code is amended to read:25401.5.
For the purpose of reducing electrical andSEC. 120.
Section 25402.10 of the Public Resources Code is amended to read:25402.10.
(a) For purposes of this section, the following definitions apply:(1) To “benchmark,” in reference to energy use, means to obtain information on the energy use in an entire building for a specific period to enable that usage to be tracked or compared against other buildings.
(2) “Covered building” means either or both of the following:
(A) Any building with no residential utility accounts.
(B) Any building with five or more active utility accounts, residential or nonresidential.
(3) “Energy” means
electricity, natural gas, methane, steam, or fuel oil sold by a utility to a customer for end uses addressed by the ENERGY STAR Portfolio Manager.
(4) “ENERGY STAR Portfolio Manager” means the tool developed and maintained by the United States Environmental Protection Agency to track and assess the energy performance of buildings.
(b) On and after January 1, 2016, each utility shall maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12 complete calendar months.
(c) (1) Subject to the requirements of paragraph (2), on and after January 1,
2017, each utility shall, upon the request and written authorization or secure electronic authorization of the owner, owner’s agent, or operator of a covered building, deliver or otherwise provide aggregated energy usage data for a covered building to the owner, owner’s agent, building operator, or to the owner’s account in the ENERGY STAR Portfolio Manager. The commission may specify additional information to be delivered by utilities to enable building owners to complete benchmarking of the energy use in their buildings and in other systems or formats for information delivery and automation.
(2) The delivery of information by utilities pursuant to this section shall be subject to the following requirements:
(A) For covered buildings with three or more active utility accounts, each utility shall deliver information showing the aggregated energy usage data of all utility customers
in the same building for each of the 12 prior months. Notwithstanding any other law, energy usage data aggregated in this manner shall not be deemed customer utility usage information or confidential information by the utility for purposes of delivery to the owner, owner’s agent, or operator of a building. The building owner and utility shall not have any liability for any use or disclosure of aggregated energy usage data delivered as required by this section.
(B) For covered buildings not subject to subparagraph (A), each utility shall deliver the information showing the aggregated energy usage data of all utility customers in each covered building for each of the prior 12 months if the accountholder provides written or electronic consent for the delivery of the accountholder’s energy usage data to the owner, owner’s agent, operator, or utility.
(C) Each utility shall deliver,
upload, or otherwise provide aggregated energy usage data within four weeks of receiving a request from an owner, owner’s agent, or operator of a covered building.
(D) Each utility shall make available the covered building energy usage data aggregated at a monthly level unless otherwise specified by the commission.
(E) The building owner and utility shall not have any liability for any use or disclosure by others of usage information delivered as required by this section.
(d) The commission shall adopt regulations providing for the delivery to the commission and public disclosure of benchmarking of energy use for covered buildings, as follows:
(1) This subdivision does not require the owner of a building with less than 50,000 square feet of gross floor
space or with 16 or fewer residential utility accounts to collect or deliver energy usage information to the commission.
(2) The commission may do, but is not limited to doing, all of the following in regulations adopted pursuant to this subdivision:
(A) Identify and provide for the collection of the energy usage data for calculations for the purpose of benchmarking of energy use.
(B) Identify and provide for the collection of the covered building characteristic information deemed necessary by the commission for the calculations for the purpose of the benchmarking of energy use.
(C) Specify the manner in which certain benchmarking of energy use shall be publicly disclosed.
(D) Determine
which covered buildings, in addition to those described in paragraph (1), are not subject to the public disclosure requirement.
(E) Set a schedule to implement the requirements for public disclosure adopted by the commission.
(F) Determine if compliance with a local or county benchmarking program fulfills the commission’s requirements adopted pursuant to this subdivision.
(G) Identify categories of information it receives pursuant to this section that are protected from release under either the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(3) The
commission shall determine who will deliver the energy usage data and related information for any covered building to the commission.
(e) The commission may ensure timely and accurate compliance with the data submission requirements of this section by using the enforcement measures identified in Section 25321. An owner of a covered building, or its agents or operators, shall not be liable for any noncompliance due to the failure of a utility to provide the information required for compliance.
(f) For buildings that are not covered buildings, and for customer information that is not aggregated pursuant to subparagraph (A) of paragraph (2) of subdivision (c), the commission may adopt regulations prescribing how utilities shall either obtain the customer’s permission or determine that a building owner has obtained the customer’s permission, for the owner to receive aggregated energy
usage data or, where applicable, individual customer usage information, including by use of electronic authorization and in a lease agreement between the owner and the customer.
(g) The reasonable costs of an electrical or gas corporation in delivering electrical or gas usage data pursuant to this section or other information as required under state or federal law or by an order of the commission shall be recoverable in rates evaluated and approved by the Public Utilities Commission.
(h) The reasonable costs of local publicly owned electric utilities in disclosing electrical usage data pursuant to this section may be considered “cost-effective demand-side management services to promote energy efficiency and energy conservation” and thereby reimbursable by their general funds.
(i) (1) For
purposes of adopting or revising regulations pursuant to subdivision (d), the commission may include two or more buildings located on a single parcel or adjacent parcels with the same owner of record and with five or more active utility accounts, in aggregate, residential or nonresidential, as a single covered building, as described in subparagraph (B) of paragraph (2) of subdivision (a).
(2) An electrical or gas utility shall provide to the owner, owner’s agent, or operator of a property containing two or more buildings on a single parcel or adjacent parcels with five or more active utility accounts, in aggregate, residential or nonresidential, upon request of the owner, agent, or operator, aggregate energy usage data on all such buildings in a manner provided pursuant to subdivision (c) as if those buildings are a single covered building, as described in subparagraph (B) of paragraph (2) of subdivision (a).
(j) This section does not prevent a city or county from establishing its own benchmarking program requiring collection, delivery, and disclosure of building information.
SEC. 121.
Section 25412.5 of the Public Resources Code is amended to read:25412.5.
The commission shall take steps to solicit loan applications to do all of the following:(a) Encourage an equitable distribution of loans statewide.
(b) Award loans for eligible energy projects or measures in regions with high summer peak loads, with high heating costs, or that have electrical or natural gas methane system distribution constraints.
(c) Place an emphasis on offering these loans in disadvantaged communities.
SEC. 122.
Section 25540.6 of the Public Resources Code is amended to read:25540.6.
(a) Notwithstanding any other(1) A thermal powerplant which that will
employ cogeneration technology, a thermal powerplant that will employ natural gas-fired methane-fired
technology, or a solar thermal powerplant.
(2) A modification of an existing facility.
(3) A thermal powerplant which that it is only technologically or economically feasible to site at or near the energy source.
(4) A thermal powerplant with a generating capacity of up to 100 megawatts.
(5) A thermal powerplant designed to develop or demonstrate technologies which that
have not previously been built or operated on a commercial scale. Such a research, development, or commercial demonstration project may include, but is not limited to, the use of renewable or alternative fuels, improvements in energy conversion efficiency, or the use of advanced pollution control systems. Such a facility may shall not exceed 300 megawatts unless the commission, by regulation, authorizes a greater capacity. Section 25524 does not apply to such a powerplant and related facility or facilities.
(b) Projects exempted from the notice of intention requirement pursuant to paragraph (1), (4), or (5) of subdivision (a) shall include, in the application for certification, a discussion of the applicant’s site selection criteria, any
alternative sites that the applicant considered for the project, and the reasons why the applicant chose the proposed site. That discussion shall not be required for cogeneration projects at existing industrial sites. The commission may also accept an application for a noncogeneration project at an existing industrial site without requiring a discussion of site alternatives if the commission finds that the project has a strong relationship to the existing industrial site and that it is therefore reasonable not to analyze alternative sites for the project.
SEC. 123.
Section 25550 of the Public Resources Code is amended to read:25550.
For purposes of this chapter, the following definitions apply:(a) “Buyer of natural gas” methane” means a gas corporation, local publicly owned gas utility, noncore gas customer, or core transport agent.
(b) “Core transport agent” has the same meaning as set forth in subdivision (b) of Section 980 of the Public Utilities Code.
(c) “Division” means the Geologic Energy Management Division.
(d) “Gas
corporation” has the same meaning as set forth in Section 222 of the Public Utilities Code.
(e) “Natural gas “Methane infrastructure” means a natural gas methane facility used for the production, gathering and boosting, processing, transmission, storage, or distribution necessary for the delivery of natural gas
methane to end-use customers in California.
(f) “Noncore gas customer” means an entity that procures directly from natural gas
methane producers or natural gas methane marketers and is not a gas corporation or local publicly owned gas utility.
(g) “Procure” means to acquire through ownership or contract.
(h) “Tracking” means using a system that communicates the pathway of a given volume of natural gas methane from its initial production to its delivery to end-use customers in this state.
SEC. 124.
Section 25555 of the Public Resources Code is amended to read:25555.
(a) Not later than September 15, 2017, the commission shall report to the respective budget committees of each house of the Legislature on the resources needed to develop a plan for tracking(1) Collect data from natural gas
methane participants to support the work described in subdivision (c). The commission shall consult with the State Air Resources Board to determine the most appropriate data to collect.
(2) Consider participation in, or formation of, interstate and federal working groups, compacts, or agreements.
(3) Establish methods to ensure natural gas methane tracking data reporting compliance by buyers of natural
gas, methane, and natural gas methane producers, marketers, storers, and transporters.
(4) Provide data collected pursuant to paragraph (1) to the State Air Resources Board to support the implementation of Section 39731 of the Health and Safety Code.
(b) In the consideration of the report pursuant to subdivision (a), the commission consult with, and receive information from, stakeholders, including, but not limited to, the Public Utilities Commission, the United States Environmental Protection Agency, the United States Department of Energy, the State Air Resources Board, the
division, the Federal Energy Regulatory Commission, the United States Department of Transportation Office of Pipeline Safety, appropriate agencies in states where gas consumed in California is produced, gathered and boosted, processed, transmitted, stored, or distributed, representatives of the oil and gas industry, and independent experts from academia and nongovernmental organizations.
(c) The State Air Resources Board, in consultation with the commission, shall develop a model of fugitive and vented emissions of methane from natural gas methane infrastructure. The model shall do all of the following:
(1) Quantify emissions from specific natural gas
methane infrastructure.
(2) Incorporate the current condition and current management practices of specific natural gas methane infrastructure.
(3) Incorporate natural gas methane industry best management practices established by the Public Utilities Commission pursuant to Section 975 of the Public Utilities Code for gas corporations, by the United States Environmental Protection Agency, by the division, and by other relevant
entities.
SEC. 125.
Section 25620.1 of the Public Resources Code is amended to read:25620.1.
(a) The commission shall develop, implement, and administer the Public Interest Research, Development, and Demonstration Program that is hereby created. The program shall include a full range of research, development, and demonstration activities that, as determined by the commission, are not adequately provided for by competitive and regulated markets. The commission shall administer the program consistent with the policies of this chapter.(b) The general goal of the program is to develop, and help bring to market, energy technologies that provide increased environmental benefits, greater system reliability, and lower system costs, and that provide tangible benefits to electric utility customers through the following
investments:
(1) Advanced transportation technologies that reduce air pollution and greenhouse gas emissions beyond applicable standards, and that benefit electricity and natural gas methane ratepayers.
(2) Increased energy efficiency in buildings, appliances, lighting, and other applications beyond applicable standards, and that benefit electric utility customers.
(3) Advanced electricity generation technologies that exceed applicable standards to increase reductions in greenhouse gas emissions from electricity generation, and that benefit electric utility customers.
(4) Advanced electricity technologies that reduce or eliminate consumption of water or other finite resources, increase use of renewable energy resources, or improve transmission or distribution of electricity generated from renewable energy resources.
(c) To achieve the goals established in subdivision (b), the commission shall adopt a portfolio approach for the program that does all of the following:
(1) Effectively balances the risks, benefits, and time horizons for various activities and investments that will provide tangible energy or environmental benefits for California electricity customers.
(2) Emphasizes innovative energy supply and end use technologies, focusing on their reliability, affordability, and environmental attributes.
(3) Includes projects that have the potential to enhance transmission and distribution capabilities.
(4) Includes projects that have the potential to enhance the reliability, peaking power, and storage capabilities of renewable energy.
(5) Demonstrates a balance of benefits to all sectors that contribute to the funding under Section 399.8 of the Public Utilities Code.
(6) Addresses key technical and scientific barriers.
(7) Demonstrates a balance between short-term, mid-term, and long-term potential.
(8) Ensures that prior, current, and future research not be unnecessarily duplicated.
(9) Provides for the future
market utilization of projects funded through the program.
(10) Ensures an open project selection process and encourages the awarding of research funding for a diverse type of research as well as a diverse award recipient base and equally considers research proposals from the public and private sectors.
(11) Coordinates with other related research programs.
(d) The term “award,” as used in this chapter, may include, but is not limited to, contracts, grants, interagency agreements, loans, and other financial agreements designed to fund public interest research, demonstration, and development projects or programs.
SEC. 126.
Section 25620.8 of the Public Resources Code is amended to read:25620.8.
(a) The commission shall prepare and submit to the relevant policy committees of the Legislature and the Joint Legislative Budget Committee an annual report, not later than October 31 of each year, that includes, but is not limited to, all of the following information:(1) Recommendations for improvements in the program.
(2) A summary of the Public Interest Research, Development, and Demonstration Program’s impacts and benefits.
(3) A summary of how funding is allocated to each of the Public Interest Research, Development, and Demonstration Program’s natural gas
methane investment areas.
(4) A description of successful or promising projects funded in each of the Public Interest Research, Development, and Demonstration Program’s natural gas methane investment areas.
(5) A summary of expected Public Interest Research, Development, and Demonstration Program funding initiatives and activities over the next year.
(6) Information on Public Interest Research, Development, and Demonstration Program-approved project budgets and benefits, all active projects, and recently completed projects.
(7) A description of any recent changes to the Public Interest Research, Development, and Demonstration Program’s spending guidelines or eligible projects.
(b) As part of each annual report submitted pursuant to this section, the commission may include information that has been previously provided in reports submitted to the Public Utilities Commission.
(c) The commission shall establish procedures for protecting confidential or proprietary information and shall consult with all interested parties in the preparation of each annual report submitted pursuant to this section.
(d) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 127.
Section 25704 of the Public Resources Code is amended to read:25704.
The commission shall carry out studies to determine if potential serious shortages ofSEC. 128.
Section 25722.5 of the Public Resources Code is amended to read:25722.5.
(a) Each state office, agency, and department shall review its vehicle fleet and, upon finding that it is fiscally prudent, cost effective, or otherwise in the public interest to do so, shall dispose of nonessential sport utility vehicles and four-wheel drive trucks in its fleet and replace these vehicles with more fuel-efficient passenger cars and trucks.(b) To the maximum extent practicable, each state office, agency, and department that has bifuel natural gas, methane, bifuel propane, and flex fuel vehicles in its vehicle fleet shall use the respective alternative fuel in
those vehicles.
(c) The Director of General Services shall compile annually and maintain information on the nature of vehicles that are owned or leased by the state, including, but not limited to, all of the following:
(1) The number of passenger-type motor vehicles purchased or leased during the year, and the number owned or leased as of December 31 of each year.
(2) The number of sport utility vehicles and four-wheel drive trucks purchased or leased by the state during the year, and the number owned or leased as of December 31 of each year.
(3) The number of alternatively fueled vehicles and hybrid vehicles purchased or leased by the state during the year, and the total number owned or leased as of December 31 of each year and their location.
(4) The locations of the alternative fuel pumps available for those vehicles.
(5) The justification provided for all sport utility vehicles and four-wheel drive trucks purchased or leased by the state and the specific office, department, or agency responsible for the purchase or lease.
(6) The number of sport utility vehicles and four-wheel drive trucks purchased or leased by the state during the year, and the number owned or leased as of December 31 of each year that are alternative fuel or hybrid vehicles.
(7) The number of light-duty trucks disposed of under subdivision (a).
(8) The total dollars spent by the state on passenger-type vehicle purchases and leases, categorized by sport
utility vehicle and nonsport utility vehicle, and within each of those categories, by alternative fuel, hybrid, and other.
(9) The total annual consumption of gasoline and diesel fuel used by the state fleet.
(10) The total annual consumption of alternative fuels.
(11) On December 31, 2009, and annually thereafter, the Director of General Services shall also compile the total annual vehicle miles traveled by vehicles in the state fleet.
(d) Each state office, agency, and department shall cooperate with the Department of General Services’ data requests in order that the department may compile and maintain the information required in subdivision (c).
(e) As soon as practicable, but no later
than 12 months after receiving the data, the information compiled and maintained under subdivision (c) and a list of those state offices, agencies, and departments that are not in compliance with subdivision (d) shall be made available to the public on the Department of General Services’ internet website.
(f) Beginning July 1, 2009, and every three years thereafter, the Director of General Services shall prepare a report on the information compiled and maintained pursuant to subdivision (c). The Director of General Services shall post that report on its internet website.
(g) Pursuant to Article IX of the California Constitution, this section does not apply to the University of California except to the extent that the Regents of the University of California, by appropriate resolution, make this section applicable.
SEC. 129.
Section 25722.8 of the Public Resources Code is amended to read:25722.8.
(a) On or before July 1, 2009, the Secretary of the Government Operations Agency, in consultation with the Department of General Services and other appropriate state agencies that maintain or purchase vehicles for the state fleet, including the campuses of the California State University, shall develop and implement, and submit to the Legislature and the Governor, a plan to improve the overall state fleet’s use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles by reducing or displacing the consumption of petroleum products by the state fleet when compared to the 2003 consumption level based on the following schedule:(1) By January 1, 2012, a 10-percent reduction or displacement.
(2) By January 1, 2020, a 20-percent reduction or displacement.
(b) Beginning April 1, 2010, and annually thereafter, the Department of General Services shall prepare a progress report on meeting the goals specified in subdivision (a). The Department of General Services shall post the progress report on its Internet Web site. internet website.
(c) (1) The Department of General Services shall encourage, to the extent feasible, the operation of state alternatively fueled vehicles on the alternative fuel for which the vehicle is designed and the development of commercial infrastructure for alternative fuel pumps and charging stations at or near state vehicle
fueling or parking sites.
(2) The Department of General Services shall work with other public agencies to incentivize and promote, to the extent feasible, state employee operation of alternatively fueled vehicles through preferential or reduced-cost parking, access to charging, or other means.
(3) For purposes of this subdivision, “alternatively fueled vehicles” means light-, medium-, and heavy-duty vehicles that reduce petroleum usage and related emissions by using advanced technologies and fuels, including, but not limited to, hybrid, plug-in hybrid, battery electric, natural gas, methane, or fuel cell vehicles and including those vehicles described in Section 5205.5 of the Vehicle
Code.
SEC. 130.
Section 25722.9 of the Public Resources Code is amended to read:25722.9.
(a) For purposes of this section, “alternatively fueled vehicles” means light-, medium-, and heavy-duty vehicles that reduce petroleum usage and related emissions by using advanced technologies and fuels, including, but not limited to, hybrid, plug-in hybrid, battery electric,(b) The Department of General Services and the Department of Transportation shall develop and implement advanced technology vehicle parking incentive programs, to the extent
feasible, in public parking facilities of 50 spaces or more operated by the Department of General Services and park-and-ride lots owned and operated by the Department of Transportation to incentivize the purchase and use of alternatively fueled vehicles in the state. These programs shall provide meaningful, tangible benefits for drivers of alternatively fueled vehicles. These incentives may include preferential spaces, reduced fees, and fueling infrastructure for alternatively fueled vehicles that use these parking facilities or park-and-ride lots.
SEC. 131.
Section 25794.6 of the Public Resources Code is amended to read:25794.6.
The commission shall not certify a site and related facility if any of the following applies:(a) The site is a site described in Section 25527.
(b) The site has not been previously disturbed, including, but not limited to, site clearing, excavating, grading, or other manipulation of the terrain.
(c) The site does not have access to the infrastructure and resources with the necessary existing capacity and in the proximity needed to operate the facility, including, but not limited to, a natural gas
methane line and a water line, as applicable.
(d) After July 31, 2023, the facility will use diesel fuel.
SEC. 132.
Section 25943 of the Public Resources Code is amended to read:25943.
(a) (1) By March 1, 2010, the commission shall establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock. This program shall comprise a complementary portfolio of techniques, applications, and practices that will achieve greater energy efficiency in existing residential and nonresidential structures that fall significantly below the current standards in Title 24 of the California Code of Regulations, as determined by the commission.(2) The comprehensive program may include, but need not be limited to, a broad range of energy assessments, building benchmarking, energy rating, cost-effective energy efficiency
improvements, public and private sector energy efficiency financing options, public outreach and education efforts, and green workforce training.
(3) The commission shall adopt, implement, and enforce a responsible contractor policy for use across all ratepayer-funded energy efficiency programs that involve installation or maintenance, or both installation and maintenance, by building contractors to ensure that retrofits meet high-quality performance standards and reduce energy savings lost or foregone due to poor-quality workmanship.
(4) The commission, in consultation with the Public Utilities Commission, shall establish consumer protection guidelines for energy efficiency products and services.
(b) To develop and implement the program specified in subdivision (a), the commission shall do both of the following:
(1) Coordinate with the Public Utilities Commission and consult with representatives from the Bureau of Real Estate, the Department of Housing and Community Development, investor-owned and publicly owned utilities, local governments, real estate licensees, commercial and homebuilders, commercial property owners, small businesses, mortgage lenders, financial institutions, home appraisers, inspectors, energy rating organizations, consumer groups, environmental and environmental justice groups, and other entities the commission deems appropriate.
(2) Hold at least three public hearings in geographically diverse locations throughout the state.
(c) In developing the requirements for the program specified in subdivision (a), the commission shall consider all of the following:
(1) The amount of annual and peak energy savings, greenhouse gas emission reductions, and projected customer utility bill savings that will accrue from the program.
(2) The most cost-effective means and reasonable timeframes to achieve the goals of the program.
(3) The various climatic zones within the state.
(4) An appropriate method to inform and educate the public about the need for, benefits of, and environmental impacts of, the comprehensive energy efficiency program.
(5) The most effective way to report the energy assessment results and the corresponding energy efficiency improvements to the owner of the residential or nonresidential building, including, among other things, the
following:
(A) Prioritizing the identified energy efficiency improvements.
(B) The payback period or cost-effectiveness of each improvement identified.
(C) The various incentives, loans, grants, and rebates offered to finance the improvements.
(D) Available financing options including all of the following:
(i) Mortgages or sales agreement components.
(ii) On-bill financing.
(iii) Contractual property tax assessments.
(iv) Home warranties.
(6) Existing statutory and regulatory requirements to achieve energy efficiency savings and greenhouse gas emission reductions.
(7) A broad range of implementation approaches, including both utility and nonutility administration of energy efficiency programs, especially the use of not-for-profit and community-based organizations that assist with deployment in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(8) Workforce development and job training for residents in disadvantaged communities, including veterans, at-risk youth, and members of the state and local community conservation corps.
(9) Any other considerations deemed appropriate by the commission.
(d) The program developed pursuant to
this section shall do all of the following:
(1) Minimize the overall costs of establishing and implementing the comprehensive energy efficiency program requirements.
(2) Ensure, for residential buildings, that the energy efficiency assessments, ratings, or improvements do not unreasonably or unnecessarily affect the home purchasing process or the ability of individuals to rent housing. A transfer of property subject to the program implemented pursuant to this section shall not be invalidated solely because of the failure of a person to comply with a provision of the program.
(3) Ensure, for nonresidential buildings, that the energy improvements do not have an undue economic impact on California businesses.
(4) Determine, for residential buildings, the
appropriateness of the Home Energy Rating System (HERS) program to support the goals of this section and whether there are a sufficient number of HERS-certified raters available to meet the program requirements.
(5) Determine, for nonresidential structures, the availability of an appropriate cost-effective energy efficiency assessment system and whether there are a sufficient number of certified raters or auditors available to meet the program requirements.
(6) Coordinate with the California Workforce Investment Board, the Employment Training Panel, the California Community Colleges, and other entities to ensure a qualified, well-trained workforce is available to implement the program requirements.
(7) Promote greater project penetration in disadvantaged communities identified pursuant to Section 39711 of the Health
and Safety Code, including the deployment of energy efficiency surveys and audits, energy efficiency retrofits and upgrades, weatherization, and followup project inspections by state-certified community conservation corps and other community-based workforce development organizations that serve residents of disadvantaged communities, including veterans and disadvantaged youth.
(8) Coordinate with, and avoid duplication of, existing proceedings of the Public Utilities Commission and programs administered by utilities.
(e) A home energy rating or energy assessment service does not meet the requirements of this section unless the service has been certified by the commission to be in compliance with the program criteria developed pursuant to this section and is in conformity with other applicable elements of the program.
(f) (1) The commission shall periodically update the criteria and adopt any revision that, in its judgment, is necessary to improve or refine program requirements after receiving public input.
(2) On or before January 1, 2017, and at least once every three years thereafter, the commission shall adopt an update to the program in furtherance of achieving a cumulative doubling of statewide energy efficiency savings in electricity and natural gas methane final end uses of retail customers by January 1, 2030.
(g) Before implementing an element of the program developed pursuant to subdivision (a) that requires the expansion of statutory authority of the commission
or the Public Utilities Commission, the commission and the Public Utilities Commission shall obtain legislative approval for the expansion of their authorities.
(h) The commission shall report on the status of the program in the integrated energy policy report pursuant to Section 25302.
(i) The commission shall fund activities undertaken pursuant to this section from the Federal Trust Fund consistent with the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or other sources of nonstate funds available to the commission for the purposes of this section.
(j) For purposes of this section, the following terms mean the following:
(1) “Energy assessment” means a determination of an energy user’s energy consumption level, relative
efficiency compared to other users, and opportunities to achieve greater efficiency or improve energy resource utilization.
(2) “Energy efficiency” means delivering equal or more services with less energy input from an energy source.
SEC. 133.
Section 25990 of the Public Resources Code is amended to read:25990.
(a) For purposes of this chapter, the term “district” shall mean the Humboldt Bay Harbor, Recreation, and Conservation District, the Ports of Hueneme, Oakland, Long Beach, Los Angeles, Redwood City, Richmond, San Diego, San Francisco, Stockton, and West Sacramento, and any other harbor, recreation, and conservation district that operates a harbor or port in the state. A district may prepare one or more energy management plans, developed jointly with an electrical corporation, as defined in subdivision (a) of Section 218 of the Public Utilities Code, a gas corporation, as defined in Section 222 of the Public Utilities Code, a community choice aggregator established on or before July 1, 2013, or a public utility, as defined in subdivision (a) of Section 216 of the Public Utilities Code, that produces, generates, or supplies electricity to the public and that serves the district in order to reduce air emissions, promote economic development, and encourage the development of new businesses and retain existing businesses in that district.(b) If a district prepares an energy management plan pursuant to this chapter, it shall include, at a minimum, all of the following:
(1) An assessment of current energy consumption within the district by energy source and type of users. Examples of users may include commercial, industrial, governmental, ships, individual transport, and product transport.
(2) An assessment of other energy efficiency and management issues the district determines to evaluate in order to inform the development of specific goals and actions that reduce air emissions and promote economic development, including all of the
following:
(A) An electric electrical or natural gas methane load forecast, developed in coordination with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric or gas utility that reflects anticipated load growth within the district.
(B) An assessment of the role that distributed generation, combined with accurately priced utility services, could play in providing greater rate stability and energy cost
certainty to aid in economic development, and proposed actions with respect to that role. This assessment shall be developed jointly with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric or gas utility.
(C) An assessment, in consultation with business and industry, that identifies current and emerging processes and technologies to reduce energy consumption and improve energy efficiency.
(D) An assessment, in consultation with business and industry, that identifies domestic and international shipping requirements and operations related to energy use and consumption.
(3) A set of measurable energy performance and management goals that reduce air emissions and promote economic development, and a prioritized list of
infrastructure projects, public education initiatives, and other actions that the district will undertake to achieve those goals.
(4) A list of recommendations, developed jointly with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local publicly owned electric or gas utility for the enhanced use of cost-effective energy efficiency and demand-side management in existing buildings and the inclusion of energy efficiency measures as part of the development of new buildings.
(5) A description of measures to be taken to reduce air emissions for vehicle use within district boundaries, including vehicles used for movement of commercial products. Proposed actions, developed jointly with the serving electrical corporation, gas corporation, community choice aggregator established on or before July 1, 2013, or local
publicly owned electric utility, may include replacement of vehicles with lower emitting alternatives and development of infrastructure, in appropriate areas, to aid in the refueling of alternative fuel vehicles.
(6) A summary identifying governmental and nongovernmental impediments to implementation of the plan that includes recommendations on how these impediments may be overcome.
(7) A description of one-year, 3-year, 5-year, 10-year, and 15-year objectives for implementation of the plan. These objectives shall be in sufficient detail to allow the district to undertake a meaningful annual review of the plan’s progress.
(8) Proposed methods to fund the activities included in the plan, including funding through utility ratepayer-funded programs.
(9) Other related energy plans, mandates, and requirements, and, to the extent possible, leverage opportunities for achieving energy efficiency and sustainable energy production, while not overburdening impacted businesses.
(c) A district that prepares a plan shall engage with small business technical assistance providers to assist in the identification of joint or collaborative energy efficiency project opportunities, public education activities, and financing opportunities that implement the actions and projects in the plan.
(d) The Public Utilities Commission shall encourage electric or gas corporations to participate jointly with local agencies in developing, implementing, and administering viable energy management plans for districts. The governing boards of local publicly owned utilities, community choice aggregators established on or before July 1, 2013, and
rural electric cooperatives shall encourage joint participation with local agencies and gas corporations in developing, implementing, and administering viable energy management plans for districts.
(e) If an energy management plan is prepared pursuant to this chapter, it shall also address the development of projects that provide greater certainty of energy costs over a period of up to 15 years for businesses developing in the district.
(f) The Public Utilities Commission may offer technical assistance in the preparation of the energy management plans developed and implemented pursuant to this chapter, including, but not limited to, identifying best practices, innovations in technology, and potential funding sources.
SEC. 134.
Section 26401 of the Public Resources Code is amended to read:26401.
(a) Within the Energy and Resources Fund there is hereby created the Energy Account and the Resources Account. The annual budget document shall propose and the annual Budget Bill shall allocate and divide the money in the fund between such accounts.(b) It is the intent of the Legislature that funds from the Energy and Resources Fund be used only for short-term projects and not for any ongoing programs.
(c) Moneys in the Energy Account may be appropriated by the Legislature solely for energy projects and programs deemed appropriate by the Legislature.
(d) All appropriations from the Energy Account
or the Resources Account shall be made by the annual Budget Bill.
(e) In applying the provisions of this section to the selection of individual energy programs and projects for funding, priority shall be given to those programs and projects which that best fulfill all of the following criteria:
(1) Have the greatest potential for reducing the use of oil and natural gas methane to produce energy.
(2) Have the greatest potential for transferability and widespread use throughout the state by the year 1990.
(3) Have the highest degree of feasibility.
SEC. 135.
Section 30001.2 of the Public Resources Code is amended to read:30001.2.
The Legislature further finds and declares that, notwithstanding the fact electrical generating facilities, refineries, and coastal-dependent developments, including ports and commercial fishing facilities, offshore petroleum and gas development, and liquefiedSEC. 136.
Section 30107 of the Public Resources Code is amended to read:30107.
“Energy facility” means any public or private processing, producing, generating, storing, transmitting, or recovering facility for electricity,SEC. 137.
Section 30715 of the Public Resources Code is amended to read:30715.
(a) Until such time as a port master plan or any portion thereof has been certified, the commission shall permit developments within ports as provided for in Chapter 7 (commencing with Section 30600). After a port master plan or any portion thereof has been certified, the permit authority of the commission provided in Chapter 7 (commencing with Section 30600) shall no longer be exercised by the commission over any new development contained in the certified plan or any portion thereof and shall at that time be delegated to the appropriate port governing body, except that approvals of any of the following categories of development by the port governing body may be appealed to the commission:(1) Developments for the storage,
transmission, and processing of liquefied natural gas methane and crude oil in such quantities as would have a significant impact upon the oil and gas supply of the state or nation or both the state and nation. A development which that has a significant impact shall be defined in the master plans.
(2) Waste water treatment facilities, except for those facilities which that
process waste water discharged incidental to normal port activities or by vessels.
(3) Roads or highways which that are not principally for internal circulation within the port boundaries.
(4) Office and residential buildings not principally devoted to the administration of activities within the port; hotels, motels, and shopping facilities not principally devoted to the sale of commercial goods utilized used for water-oriented purposes; commercial fishing facilities; and recreational small
craft marina related facilities.
(5) Oil refineries.
(6) Petrochemical production plants.
(b) If maintenance dredging is part of, or is associated with, any category of development specified in paragraphs (1) to (6), inclusive, of subdivision (a), the commission shall not consider that maintenance dredging in its review and approval of those categories.
SEC. 138.
Section 42891 of the Public Resources Code is amended to read:42891.
The Department of General Services shall revise its procedures and procurement specifications for state purchases of products that are made of, or contain components that can be derived from the recycling of, used tires, including, but not limited to, rubber, oil,SEC. 139.
Section 216 of the Public Utilities Code is amended to read:216.
(a) (1) “Public utility” includes every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, where the service is performed for, or the commodity is delivered to, the public or any portion thereof.(2) A provider of last resort, as defined in Section 387, that is providing service pursuant to Article 8.5 (commencing with Section 387) of Chapter 2.3 is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part regarding providing that
service.
(b) Whenever any common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, or heat corporation performs a service for, or delivers a commodity to, the public or any portion thereof for which any compensation or payment whatsoever is received, that common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, or heat corporation, is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part.
(c) When any person or corporation performs any service for, or delivers
any commodity to, any person, private corporation, municipality, or other political subdivision of the state, that in turn either directly or indirectly, mediately or immediately, performs that service for, or delivers that commodity to, the public or any portion thereof, that person or corporation is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part.
(d) Ownership or operation of a facility that employs cogeneration technology or produces power from other than a conventional power source or the ownership or operation of a facility which that employs landfill gas technology does not make a corporation or
person a public utility within the meaning of this section solely because of the ownership or operation of that facility.
(e) Any corporation or person engaged directly or indirectly in developing, producing, transmitting, distributing, delivering, or selling any form of heat derived from geothermal or solar resources or from cogeneration technology to any privately owned or publicly owned public utility, or to the public or any portion thereof, is not a public utility within the meaning of this section solely by reason of engaging in any of those activities.
(f) The ownership or operation of a facility that sells compressed natural gas methane or hydrogen at retail to the public for use only
as a motor vehicle fuel, and the selling of compressed natural gas methane or hydrogen at retail from that facility to the public for use only as a motor vehicle fuel, does not make the corporation or person a public utility within the meaning of this section solely because of that ownership, operation, or sale.
(g) Ownership or operation of a facility that is an exempt wholesale generator, as defined in the Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)), does not make a corporation or person a public utility within the meaning of this section, solely due to the ownership or operation of that facility.
(h) The ownership, control, operation, or management of an electric
plant used for direct transactions or participation directly or indirectly in direct transactions, as permitted by subdivision (b) of Section 365, sales into a market established and operated by the Independent System Operator or any other wholesale electricity market, or the use or sale as permitted under subdivisions (b) to (d), inclusive, of Section 218, shall not make a corporation or person a public utility within the meaning of this section solely because of that ownership, participation, or sale.
(i) The ownership, control, operation, or management of a facility that supplies electricity to the public only for use to charge light duty plug-in electric vehicles does not make the corporation or person a public utility within the meaning of this section solely because of that ownership, control, operation, or management. For purposes of this subdivision, “light duty plug-in electric vehicles” includes light duty battery electric and plug-in
hybrid electric vehicles. This subdivision does not affect the commission’s authority under Section 454 or 740.2 or any other applicable statute.
SEC. 140.
Section 216.6 of the Public Utilities Code is amended to read:216.6.
“Cogeneration” means the sequential use of energy for the production of electrical and useful thermal energy. The sequence can be thermal use followed by(a) At least 5 percent of the facility’s total annual energy output shall be in the form of useful thermal energy.
(b) Where useful thermal energy follows power
electricity production, the useful annual power electrical output plus one-half the useful annual thermal energy output equals not less than 42.5 percent of any natural gas
methane and oil energy input.
SEC. 141.
Section 328.1 of the Public Utilities Code is amended to read:328.1.
As used in this chapter, the following terms have the following meanings:(a) “Basic gas service” includes transmission, storage for reliability of service, and distribution of natural gas, methane, purchasing natural gas methane on behalf of a customer, revenue cycle services, and after-meter services.
(b) “Revenue cycle services” means metering services, billing the customer, collection, and related customer services.
(c) “After-meter services” includes, but is not limited to, leak investigation, inspecting customer piping and appliances, carbon monoxide investigation, pilot relighting, and high bill investigation.
(d) “Metering services” includes, but is not limited to, gas meter installation, meter maintenance, meter testing, collecting and processing consumption data, and all related services associated with the meter.
SEC. 142.
Section 328.2 of the Public Utilities Code is amended to read:328.2.
The commission shall require each gas corporation to provide bundled basic gas service to all core customers in its service territory unless the customer chooses or contracts to haveSEC. 143.
Section 353.1 of the Public Utilities Code is amended to read:353.1.
As used in this article, “distributed energy resources” means(a) Commences initial operation between May 1, 2001, and June 1, 2003, except that gas-fired distributed energy resources that are not operated in a combined heat and power application shall commence operation no later than September 1, 2002.
(b) Is located within a single facility.
(c) Is five megawatts or smaller in aggregate capacity.
(d) Serves onsite loads or over-the-fence transactions allowed under Sections 216 and 218.
(e) Is powered by any fuel other than diesel.
(f) Complies with emission standards and guidance adopted by the State Air Resources Board pursuant to Sections 41514.9 and 41514.10 of the Health and Safety Code. Prior to Before the adoption of those standards and guidance, for the purpose of this article, distributed energy resources shall meet emission levels equivalent to nine parts per million oxides of nitrogen, or the equivalent standard taking into account efficiency
as determined by the State Air Resources Board, averaged over a three-hour period, or best available control technology for the applicable air district, whichever is lower, except for distributed generation units that displace and therefore significantly reduce emissions from natural gas
methane flares or reinjection compressors, as determined by the State Air Resources Board. These units shall comply with the applicable best available control technology as determined by the air pollution control district or air quality management district in which they are located.
SEC. 144.
Section 366.1 of the Public Utilities Code is amended to read:366.1.
(a) As used in this section, the following terms have the following meanings:(1) “Department” means the Department of Water Resources with respect to its power program described in Chapter 2 (commencing with Section 80100) of Division 27 of the Water Code.
(2) “Existing project participant” means a city with rights and obligations to the Magnolia Power Project under the Magnolia Power Project Planning Agreement, dated May 1, 2001.
(3) “Magnolia Power Project” means a proposed natural gas-fired
methane-fired electric generating facility to be located at an existing site in Burbank and for which an application for certification has been filed with the State Energy Resources Conservation and Development Act (Docket No. 00-SIT-1) and deemed data adequate pursuant to the expedited six-month licensing process established under Section 25550 of the Public Resources Code.
(b) Notwithstanding Section 80110 of the Water Code or Commission Decision 01-09-060, if the Magnolia Power Project has been constructed and is otherwise capable of beginning deliveries of electricity to the existing project participants, an existing project participant may serve as a community aggregator on behalf of all retail end-use customers within its jurisdiction.
(c) Subdivision (b) shall not become operative until both of the following occur:
(1) The commission implements a cost-recovery mechanism, consistent with subdivision (d), that is applicable to customers that elected to purchase electricity from an alternate provider between February 1, 2001, and the effective date of the act adding this section.
(2) The commission submits a report certifying its satisfaction of paragraph (1) to the Senate Energy, Utilities and Communications Committee, or its successor, and the Assembly Committee on Utilities and Commerce, or its successor.
(d) (1) It is the intent of the Legislature that each retail end-use customer that has purchased power from an electrical corporation on or after February 1, 2001, should bear a fair share of the department’s power purchase costs, as well as power purchase contract obligations incurred as of January 1, 2003,
that are recoverable from electrical corporation customers in commission-approved rates. It is the further intent of the Legislature to prevent any shifting of recoverable costs between customers.
(2) The Legislature finds and declares that the provisions in this subdivision are consistent with the requirements of Section 360.5 and Division 27 (commencing with Section 80000) of the Water Code, and are therefore declaratory of existing law.
(e) A retail end-use customer purchasing power from a community aggregator pursuant to subdivision (b) shall reimburse the department for all of the following:
(1) A charge equivalent to the charge which would otherwise be imposed on the customer by the commission to recover bond related costs pursuant to an agreement between the commission and the Department of Water Resources
pursuant to Section 80110 of the Water Code, that charge shall be payable until all obligations of the Department of Water Resources pursuant to Division 27 of the Water Code are fully paid or otherwise discharged.
(2) The costs of the department, equal to the share of the department’s estimated net unavoidable power purchase contract costs attributable to the customer, as determined by the commission, for the period commencing with the customer’s purchases of electricity from a community aggregator, through the expiration of all then existing power purchase contracts entered into by the department.
(f) A retail end-use customer purchasing power from a community aggregator pursuant to subdivision (b) shall reimburse the electrical corporation that previously served the customer for all of the following:
(1) The
electrical corporation’s unrecovered past undercollections, including all financing costs attributable to that customer, that the commission lawfully determines may be recovered in rates.
(2) The costs of the electrical corporation recoverable in commission-approved rates, equal to the share of the electrical corporation’s estimated net unavoidable power purchase contract costs attributable to the customer, as determined by the commission, for the period commencing with the customer’s purchases of electricity from the community aggregator, through the expiration of all then existing power purchase contracts entered into by the electrical corporation.
(g) (1) A charge or cost imposed pursuant to subdivision (e), and all revenues received to pay the charge or cost, shall be the property of the Department of Water Resources. A charge or cost imposed pursuant to
subdivision (f), and all revenues received to pay the charge or cost, shall be the property of the particular electrical corporation. The commission shall establish mechanisms, including agreements with, or orders with respect to, electrical corporations necessary to assure that the revenues received to pay a charge or cost payable pursuant to this section are promptly remitted to the party entitled to those revenues.
(2) A charge or cost imposed pursuant to this section shall be nonbypassable.
SEC. 145.
Section 368 of the Public Utilities Code is amended to read:368.
Each electrical corporation shall propose a cost recovery plan to the commission for the recovery of the uneconomic costs of an electrical corporation’s generation-related assets and obligations identified in Section 367. The commission shall authorize the electrical corporation to recover the costs pursuant to the plan if the plan meets the following criteria:(a) The cost recovery plan shall set rates for each customer class, rate schedule, contract, or tariff option, at levels equal to the level as shown on electric rate schedules as of June 10, 1996, provided that rates for residential and small commercial customers shall be reduced so that these customers shall receive rate reductions of no less than 10 percent for 1998 continuing through 2002.
These rate levels for each customer class, rate schedule, contract, or tariff option shall remain in effect until the earlier of March 31, 2002, or the date on which the commission-authorized costs for utility generation-related assets and obligations have been fully recovered. The electrical corporation shall be at risk for those costs not recovered during that time period. Each utility shall amortize its total uneconomic costs, to the extent possible, such that for each year during the transition period its recorded rate of return on the remaining uneconomic assets does not exceed its authorized rate of return for those assets. For purposes of determining the extent to which the costs have been recovered, any over-collections recorded in Energy Costs Adjustment Clause and Electric Revenue Adjustment Mechanism balancing accounts, as of December 31, 1996, shall be credited to the recovery of the costs.
(b) The cost recovery plan shall provide
for identification and separation of individual rate components such as charges for energy, transmission, distribution, public benefit programs, and recovery of uneconomic costs. The separation of rate components required by this subdivision shall be used to ensure that customers of the electrical corporation who become eligible to purchase electricity from suppliers other than the electrical corporation pay the same unbundled component charges, other than energy, that a bundled service customer pays. No cost shifting among customer classes, rate schedules, contract, or tariff options shall result from the separation required by this subdivision. Nothing in this provision is intended to affect the rates, terms, and conditions or to limit the use of any Federal Energy Regulatory Commission-approved contract entered into by the electrical corporation prior to
before the effective date of this provision.
(c) In consideration of the risk that the uneconomic costs identified in Section 367 may not be recoverable within the period identified in subdivision (a) of Section 367, an electrical corporation that, as of December 20, 1995, served more than four million customers, and was also a gas corporation that served less than four thousand customers, shall have the flexibility to employ risk management tools, such as forward hedges, to manage the market price volatility associated with unexpected fluctuations in natural gas methane prices, and the out-of-pocket costs of acquiring the risk management tools shall be considered reasonable and collectible within the transition
freeze period. This subdivision applies only to the transaction costs associated with the risk management tools and shall not include any losses from changes in market prices.
(d) In order to ensure implementation of the cost recovery plan, the limitation on the maximum amount of cost recovery for nuclear facilities that may be collected in any year adopted by the commission in Decision 96-01-011 and Decision 96-04-059 shall be eliminated to allow the maximum opportunity to collect the nuclear costs within the transition cap period.
(e) As to an electrical corporation that is also a gas corporation serving more than four million California customers, so long as any cost recovery plan adopted in accordance with this section satisfies subdivision (a), it shall also provide for annual increases in base revenues, effective January 1, 1997, and January 1, 1998, equal to the inflation
rate for the prior year plus two percentage points, as measured by the consumer price index. The increase shall do both of the following:
(1) Remain in effect pending the next general rate case review, which shall be filed not later than December 31, 1997, for rates that would become effective in January 1999. For purposes of any commission-approved performance-based ratemaking mechanism or general rate case review, the increases in base revenue authorized by this subdivision shall create no presumption that the level of base revenue reflecting those increases constitute the appropriate starting point for subsequent revenues.
(2) Be used by the utility for the purposes of enhancing its transmission and distribution system safety and reliability, including, but not limited to, vegetation management and emergency response. To the extent the revenues are not expended for system
safety and reliability, they shall be credited against subsequent safety and reliability base revenue requirements. Any excess revenues carried over shall not be used to pay any monetary sanctions imposed by the commission.
(f) The cost recovery plan shall provide the electrical corporation with the flexibility to manage the renegotiation, buy-out, or buy-down of the electrical corporation’s power purchase obligations, consistent with review by the commission to assure that the terms provide net benefits to ratepayers and are otherwise reasonable in protecting the interests of both ratepayers and shareholders.
(g) An example of a plan authorized by this section is the document entitled “Restructuring Rate Settlement” transmitted to the commission by Pacific Gas and Electric Company on June 12, 1996.
SEC. 146.
Section 379.5 of the Public Utilities Code is amended to read:379.5.
Notwithstanding any other(a) (1) Identify and undertake those actions necessary to reduce or remove constraints on the state’s existing electrical transmission and distribution system, including, but not limited to, reconductoring of transmission lines, the addition of capacitors to increase voltage, the reinforcement of existing transmission capacity, and the
installation of new transformer banks. The commission shall, in consultation with the Independent System Operator, give first priority to those geographical regions where congestion reduces or impedes electrical transmission and supply.
(2) Consistent with the existing statutory authority of the commission, afford electrical corporations a reasonable opportunity to fully recover costs it determines are reasonable and prudent to plan, finance, construct, operate, and maintain any facilities under its jurisdiction required by this section.
(b) In consultation with the Energy Commission, adopt energy conservation demand-side management and other initiatives in order to reduce demand for electricity and reduce load during peak demand periods. Those initiatives shall include, but not be limited to, all of the following:
(1) Expansion and acceleration of residential and commercial weatherization programs.
(2) Expansion and acceleration of programs to inspect and improve the operating efficiency of heating, ventilation, and air-conditioning equipment in new and existing buildings, to ensure that these systems achieve the maximum feasible cost-effective energy efficiency.
(3) Expansion and acceleration of programs to improve energy efficiency in new buildings, in order to achieve the maximum feasible reductions in uneconomic energy and peak electricity consumption.
(4) Incentives to equip commercial buildings with the capacity to automatically shut down or dim nonessential lighting and incrementally raise thermostats during a peak electricity demand period.
(5) Evaluation of installing local infrastructure to link temperature setback thermostats to real-time price signals.
(6) Incentives for load control and distributed generation to be paid for enhancing reliability.
(7) Differential incentives for renewable or super clean distributed generation resources pursuant to Section 379.6.
(8) Reevaluation of all efficiency cost-effectiveness tests in light of increases in wholesale electricity costs and of natural gas methane costs to explicitly include the system value of reduced load on reducing market clearing prices and volatility.
(c) In consultation with the Energy Commission, adopt and implement a residential, commercial, and industrial peak reduction program that encourages electric customers to reduce electricity consumption during peak power periods.
SEC. 147.
Section 379.6 of the Public Utilities Code is amended to read:379.6.
(a) (1) It is the intent of the Legislature that the self-generation incentive program increase deployment of distributed generation and energy storage systems to facilitate the integration of those resources into the electrical grid, improve efficiency and reliability of the distribution and transmission system, and reduce emissions of greenhouse gases, peak demand, and ratepayer costs. It is the further intent of the Legislature that the commission, in future proceedings, provide for an equitable distribution of the costs and benefits of the program.(2) The commission, in consultation with the Energy Commission, may authorize the annual collection of not more than double the amount authorized for the self-generation incentive program in the
2008 calendar year, through December 31, 2024. The commission shall require the administration of the program for distributed energy resources originally established pursuant to Chapter 329 of the Statutes of 2000 until January 1, 2026. On January 1, 2026, the commission shall provide repayment of all unallocated funds collected pursuant to this section to reduce ratepayer costs.
(b) (1) Eligibility for incentives under the self-generation incentive program that are funded through the annual collection authorized pursuant to paragraph (2) of subdivision (a) shall be limited to distributed energy resources that the commission, in consultation with the State Air Resources Board, determines will achieve reductions in emissions of greenhouse gases pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
(2) On or before July 1, 2015, the commission shall update the factor for avoided greenhouse gas emissions based on both the most recent data available to the State Air Resources Board for greenhouse gas emissions from electricity sales in the self-generation incentive program administrators’ service areas and current estimates of greenhouse gas emissions over the useful life of the distributed energy resource, including consideration of the effects of the California Renewables Portfolio Standard.
(3) The commission shall adopt requirements for energy storage systems to ensure that eligible energy storage systems reduce the emissions of greenhouse gases.
(c) Eligibility for the funding of any combustion-operated distributed generation projects using fossil fuel is subject to all of the following conditions:
(1) An oxides of nitrogen (NOx) emissions rate standard of 0.07 pounds per megawatthour and a minimum efficiency of 60 percent, or any other NOx emissions rate and minimum efficiency standard adopted by the State Air Resources Board. A minimum efficiency of 60 percent shall be measured as useful energy output divided by fuel input. The efficiency determination shall be based on 100-percent load.
(2) Combined heat and power units that meet the 60-percent efficiency standard may take a credit to meet the applicable NOx emissions standard of 0.07 pounds per megawatthour. Credit shall be at the rate of one megawatthour for each 3,400,000 British thermal units (Btus) of heat recovered.
(3) The customer receiving incentives shall adequately maintain and service the combined heat and power
units so that during operation the system continues to meet or exceed the efficiency and emissions standards established pursuant to paragraphs (1) and (2).
(4) Notwithstanding paragraph (1), a project that does not meet the applicable NOx emissions standard is eligible if it meets both of the following requirements:
(A) The project operates solely on waste gas. The commission shall require a customer that applies for an incentive pursuant to this paragraph to provide an affidavit or other form of proof that specifies that the project shall be operated solely on waste gas. Incentives awarded pursuant to this paragraph shall be subject to refund and shall be refunded by the recipient to the extent the project does not operate on waste gas. As used in this paragraph, “waste gas” means natural gas
methane that is generated as a byproduct of petroleum production operations and is not eligible for delivery to the utility pipeline system.
(B) The air quality management district or air pollution control district, in issuing a permit to operate the project, determines that operation of the project will produce an onsite net air emissions benefit compared to permitted onsite emissions if the project does not operate. The commission shall require the customer to secure the permit before receiving incentives.
(d) In determining the eligibility for the self-generation incentive program, minimum system efficiency shall be determined either by calculating electrical and process heat efficiency as set forth in Section 216.6, or by calculating overall electrical efficiency.
(e) Eligibility for incentives under the self-generation incentive program shall be limited to distributed energy resource technologies that the commission determines meet all of the following requirements:
(1) The distributed energy resource technology shifts onsite energy use to off-peak time periods or reduces demand from the grid by offsetting some or all of the customer’s onsite energy load, including, but not limited to, net peak electric load.
(2) The distributed energy resource technology is commercially available.
(3) The distributed energy resource technology safely uses the existing transmission and distribution system.
(4) The distributed energy resource technology improves air quality by reducing criteria air pollutants.
(f) Recipients of the self-generation incentive program funds shall provide relevant data to the commission and the State Air Resources Board, upon request, and shall be subject to onsite inspection to verify equipment operation and performance, including capacity, thermal output, and usage to verify criteria air pollutant and greenhouse gas emissions performance.
(g) In administering the self-generation incentive program, the commission shall determine a capacity factor for each distributed generation system energy resource technology in the program.
(h) (1) In administering the self-generation incentive program, the commission may adjust the amount of incentives and evaluate other public policy interests, including, but not limited to, ratepayers, energy efficiency, peak load reduction, load
management, and environmental interests.
(2) The commission shall consider the relative amount and the cost of greenhouse gas emissions reductions, peak demand reductions, system reliability benefits, and other measurable factors when allocating program funds between eligible technologies.
(i) The commission shall ensure that distributed generation resources are made available in the self-generation incentive program for all ratepayers.
(j) In administering the self-generation incentive program, the commission shall provide an additional incentive of 20 percent from existing program funds for the installation of eligible distributed generation resources manufactured in California.
(k) The costs of the self-generation incentive program shall not be
recovered from customers participating in the California Alternate Rates for Energy (CARE) program.
(l) The commission shall evaluate the overall success and impact of the self-generation incentive program based on the following performance measures:
(1) The amount of reductions of emissions of greenhouse gases.
(2) The amount of reductions of emissions of criteria air pollutants measured in terms of avoided emissions and reductions of criteria air pollutants represented by emissions credits secured for project approval.
(3) The amount of energy reductions measured in energy value.
(4) The amount of reductions of customer peak demand.
(5) The ratio of the electricity generated by distributed energy resource generation projects receiving incentives from the self-generation incentive program to the electricity capable of being produced by those projects, commonly known as a capacity factor.
(6) The value to the electrical transmission and distribution system measured in avoided costs of transmission and distribution upgrades and replacement.
(7) The ability to improve onsite electricity reliability as compared to onsite electricity reliability before the self-generation incentive program technology was placed in service.
(m) On and after January 1, 2020, generation technologies using nonrenewable fuels shall not be eligible for incentives under the self-generation incentive
program.
SEC. 148.
Section 390 of the Public Utilities Code is amended to read:390.
(a) Subject to applicable contractual terms, energy prices paid to nonutility power generators by(b) Until the requirements of subdivision (c) have been satisfied, short run avoided cost energy payments paid to nonutility power generators by an electrical corporation shall be based on a formula that reflects a starting energy price, adjusted monthly to
reflect changes in a starting gas index price in relation to an average of current California natural gas
methane border price indices. The starting energy price shall be based on 12-month averages of recent, pre-January 1, 1996, short-run avoided energy prices paid by each public utility electrical corporation to nonutility power generators. The starting gas index price shall be established as an average of index gas prices for the same annual periods.
(c) The short-run avoided cost energy payments paid to nonutility power generators by electrical corporations shall be based on the clearing price paid by the independent Power Exchange if (1) the commission has issued an order determining that the independent Power Exchange is functioning properly for the purposes of determining the short-run avoided cost energy payments to be made to nonutility power generators, and either (2) the fossil-fired generation units owned, directly
or indirectly, by the public utility electrical corporation are authorized to charge market-based rates and the “going forward” costs of those units are being recovered solely through the clearing prices paid by the independent Power Exchange or from contracts with the Independent System Operator, whether those contracts are market-based or based on operating costs for particular utility-owned powerplant units and at particular times when reactive power/voltage support is not yet procurable at market-based rates at locations where it is needed, and are not being recovered directly or indirectly through any other source, or (3) the public utility electrical corporation has divested 90 percent of its gas-fired generation facilities that were operated to meet load in 1994 and 1995. However, nonutility power generators subject to this section may,
upon appropriate notice to the public utility electrical corporation, exercise a one-time option to elect to thereafter receive energy payments based upon the clearing price from the independent Power Exchange.
(d) If a nonutility power generator is being paid short-run avoided costs energy payments by an electrical corporation by a firm capacity contract, a forecast as-available capacity contract, or a forecast as-delivered capacity contract on the basis of the clearing price paid by the independent Power Exchange as described in subdivision (c) above, the value of capacity in the clearing price, if any, shall not be paid to the nonutility power generator. The value of capacity in the clearing price, if any, equals the difference between the market clearing customer demand bid at the level of generation dispatched by the independent Power Exchange and the
highest supplier bid dispatched.
(e) Short-run avoided energy cost payments made pursuant to this section are in addition to contractually specified capacity payments. Nothing in this section shall be construed to affect, modify or amend the terms and conditions of existing nonutility power generators’ contracts with respect to the sale of energy or capacity or otherwise.
(f) Nothing in this section shall be construed to limit the level of transition cost recovery provided to utilities under electric industry restructuring policies established by the commission.
(g) The term “going forward costs” shall include, but not be limited to, all costs associated with fuel transportation and fuel supply, administrative and general, and operation and maintenance; provided that, for purposes of this section, the following shall
not be considered “going forward costs”: (1) commission-approved capital costs for capital additions to fossil-fueled powerplants, provided that such additions are necessary for the continued operation of the powerplants utilized used to meet load and such additions are not undertaken primarily to expand, repower or enhance the efficiency of plant operations; or, (2) commission-approved operating costs for particular utility-owned powerplant units and at particular times when reactive power/voltage support is not yet procurable at market-based rates in locations where it is needed, provided that the recovery shall end on December 31, 2001.
SEC. 149.
Section 391 of the Public Utilities Code is amended to read:391.
The Legislature finds and declares all of the following:(a) Electricity is essential to the health, safety, and economic well-being of all California consumers.
(b) The restructuring of the electricity industry will create a new electricity market with new marketers and sellers offering new goods and services, many of which may not be readily evaluated by the average consumer.
(c) It is important that these customers be protected from unfair marketing practices and that market participants demonstrate their creditworthiness and technical expertise in order to engage in power sales to these members of the public.
(d) Larger commercial and industrial customers are sophisticated energy consumers that have adequate civil remedies and are adequately protected by existing commercial law, as demonstrated by the absence of significant amounts of contract litigation between commercial and industrial natural gas methane users and natural gas methane marketers in California.
(e) It is important to create a market structure that will not unduly burden new entrants into the competitive electric market, or California may not
receive the full benefits of reduced electricity costs through competition.
(f) It is appropriate to create a system of registration and consumer protection for the electric electrical industry, designed to ensure sufficient protection for residential and small commercial consumers while simplifying entry into the market for responsible entities serving larger, more sophisticated customers.
(g) It is the intent of the Legislature that:
(1) Electricity consumers be provided with sufficient and reliable information to be able to compare and select among products and services provided in the electricity market.
(2) Consumers be provided with mechanisms to protect themselves from marketing practices that are unfair or abusive.
(3) Pursuant to the authority granted to the commission in this part as to registration and consumer protection matters, the commission shall balance the need to maximize competition by reducing barriers to entry into the small retail electricity procurement market with the need to protect small consumers against deceptive, unfair, or abusive business practices, or insolvency of the entity offering retail electric service.
(h) It is the intent of the Legislature in enacting this act to further the policies of AB 1890 (Chapter 854, Statutes of 1996) relating to electric industry restructuring.
SEC. 150.
Section 398.4 of the Public Utilities Code is amended to read:398.4.
(a) Every retail supplier that makes an offering to sell electricity that is consumed in California shall disclose its electricity sources and the associated greenhouse gases emissions intensity for the previous calendar year.(b) The disclosures required by this section shall be made to potential end-use consumers in all product-specific written promotional materials that are distributed to consumers by either printed or electronic means, including the retail supplier’s internet website, if one exists, except that advertisements and notices in general circulation media shall not be subject to this requirement.
(c) The disclosures required by this section shall be made annually to end-use consumers of
the offered electricity. The annual disclosure shall be made on the retail supplier’s internet website by October 1 of each year, and in written promotional materials by the end of the first complete billing cycle for the fourth quarter of the year, and shall be consistent with information provided to the Energy Commission pursuant to Section 398.5. A retail supplier may distribute the disclosures required by this section via email to any end-use consumer that has consented to receive email in lieu of printed materials.
(d) The disclosures required by this section shall be made separately for each portfolio offering made by the retail supplier.
(e) On or before January 1, 1998, the Energy Commission shall specify guidelines for the format and means for disclosure required by Section 398.3 and this section, based on the requirements of this article and subject to public
hearing.
(f) The costs of making the disclosures required by this section shall be considered to be generation related.
(g) The disclosures required by this section shall comply with the following:
(1) A retail supplier’s disclosure of its electricity sources shall be expressed as a percentage of annual sales derived from each of the following categories:
(A) Electricity from unspecified sources.
(B) Purchases of electricity from specified sources.
(2) A retail supplier’s disclosure of its electricity sources shall also separately identify total California system electricity, which is the sum of all in-state generation and
net electricity imports by fuel type.
(h) Each of the categories specified in subdivision (g) shall be additionally identified as a percentage of annual sales that is derived from the following fuels, sources of energy, or electricity products:
(1) Coal.
(2) Large hydroelectric (greater than 30 megawatts).
(3) Natural gas. Methane.
(4) Nuclear.
(5) Eligible renewable energy resources pursuant to the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11)), including any of the following:
(A) Biomass and biowaste.
(B) Geothermal.
(C) Eligible hydroelectric.
(D) Solar.
(E) Wind.
(6) Other categories as determined by the Energy Commission.
(7) The portion of annual sales derived from unbundled renewable energy credits shall be included in the disclosures in a format determined by the Energy Commission. A retail supplier may include additional information related to the sources of the unbundled renewable energy credits.
(i) All electricity sources disclosed as purchases of electricity from specified sources shall meet the requirements of subdivision (d) of Section 398.2.
(j) Purchases of electricity from specified sources identified pursuant to this section shall be from sources connected to the Western Electricity Coordinating Council interconnected grid.
(k) (1) Each retail supplier shall disclose both the greenhouse gas emissions intensity of any electricity portfolio offered to its retail customers and the Energy Commission’s calculation of greenhouse gas emissions intensity associated with all statewide retail electricity sales, consistent with the requirements of this subdivision.
(2) The Energy Commission shall do all of the following:
(A) Adopt a methodology, in consultation with the State Air Resources Board, for the calculation of greenhouse gas emissions intensity for each purchase of electricity by a retail supplier to serve its retail customers.
(B) Calculate the greenhouse gas emissions intensity associated with statewide retail electricity sales based on the greenhouse gas emissions for total California system electricity.
(C) Rely on the most recent verified greenhouse gas emissions data while ensuring that greenhouse gas emissions intensity factors for electricity from specified and unspecified sources are available to retail suppliers with sufficient advance notice to permit timely reporting.
(D) Establish guidelines for adjustments to a greenhouse gas emissions intensity
factor for a reporting year for any local publicly owned electric utility demonstrating generation of quantities of electricity in previous years in excess of its total retail sales and wholesale sales from specified sources that do not emit any greenhouse gases. Adjustments authorized by the guidelines established by the Energy Commission shall not permit excess generation procured in a single year to be counted more than once or to be resold to another retail supplier as a specified source.
(E) Ensure that there is no double-counting of the greenhouse gas emissions or emissions attributes associated with any unit of electricity production reported by a retail supplier for any specific generating facility or unspecified source located within the Western Electricity Coordinating Council when calculating greenhouse gas emissions intensity.
(F) (i) On or before
January 1, 2018, adopt guidelines, through an open process, subject to public comment, and adopted by a vote of the Energy Commission, for the reporting and disclosure of greenhouse gas emissions intensity associated with retail sales based on the requirements of this subdivision. Beginning June 1, 2020, retail suppliers shall be required to report data on greenhouse gas emissions intensity associated with retail sales occurring after December 31, 2018.
(ii) Any new community choice aggregator formed after January 1, 2016, shall not be required to report data on greenhouse gas emissions intensity associated with retail sales until at least 24 months, but shall be required to report that data no later than 36 months, after serving its first retail customer.
(3) Any marketing or retail product claims relating to the greenhouse gas emissions intensity of the electric supply portfolio
of a retail supplier shall be consistent with the methodology adopted by the Energy Commission pursuant to this section. Retail suppliers may provide additional information to customers describing other actions relating to greenhouse gases that are unrelated to the electric supply portfolio.
(l) The provisions of this section shall This section does not apply to generators providing electric electrical service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section
372.
SEC. 151.
Section 399.12 of the Public Utilities Code is amended to read:399.12.
For purposes of this article, the following terms have the following meanings:(a) “Conduit hydroelectric facility” means a facility for the generation of electricity that uses only the hydroelectric potential of an existing pipe, ditch, flume, siphon, tunnel, canal, or other manmade conduit that is operated to distribute water for a beneficial use.
(b) “Balancing authority” means the responsible entity that integrates resource plans ahead of time, maintains load-interchange generation balance within a balancing authority area, and supports interconnection frequency in real time.
(c) “Balancing authority area” means the collection of generation, transmission,
and loads within the metered boundaries of the area within which the balancing authority maintains the electrical load-resource balance.
(d) “California balancing authority” is a balancing authority with control over a balancing authority area primarily located in this state and operating for retail sellers and local publicly owned electric utilities subject to the requirements of this article and includes the Independent System Operator (ISO) and a local publicly owned electric utility operating a transmission grid that is not under the operational control of the ISO. A California balancing authority is responsible for the operation of the transmission grid within its metered boundaries which that is not limited by the political boundaries of the State of
California.
(e) “Eligible renewable energy resource” means an electrical generating facility that meets the definition of a “renewable electrical generation facility” in Section 25741 of the Public Resources Code, subject to the following:
(1) (A) An existing small hydroelectric generation facility of 30 megawatts or less shall be eligible only if a retail seller or local publicly owned electric utility procured the electricity from the facility as of December 31, 2005. A new hydroelectric facility that commences generation of electricity after December 31, 2005, is not an eligible renewable energy resource if it will cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.
(B) Notwithstanding subparagraph (A), a conduit hydroelectric facility
of 30 megawatts or less that commenced operation before January 1, 2006, is an eligible renewable energy resource. A conduit hydroelectric facility of 30 megawatts or less that commences operation after December 31, 2005, is an eligible renewable energy resource so long as it does not cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.
(C) A facility approved by the governing board of a local publicly owned electric utility prior to before June 1, 2010, for procurement to satisfy renewable energy procurement obligations adopted pursuant to former Section 387, shall be certified as an eligible renewable energy resource by the Energy Commission pursuant to this article, if the facility is a “renewable
electrical generation facility” as defined in Section 25741 of the Public Resources Code.
(D) (i) A small hydroelectric generation unit with a nameplate capacity not exceeding 40 megawatts that is operated as part of a water supply or conveyance system is an eligible renewable energy resource only for the retail seller or local publicly owned electric utility that procured the electricity from the unit as of December 31, 2005. No unit shall be eligible pursuant to this subparagraph if an application for certification is submitted to the Energy Commission after January 1, 2013. Only one retail seller or local publicly owned electric utility shall be deemed to have procured electricity from a given unit as of December 31, 2005.
(ii) Notwithstanding clause (i), a local publicly owned electric utility that meets the criteria of subdivision (j) of Section 399.30
may sell to another local publicly owned electric utility electricity from small hydroelectric generation units that qualify as eligible renewable energy resources under clause (i), and that electricity may be used by the local publicly owned electric utility that purchased the electricity to meet its renewables portfolio standard procurement requirements. The total of all those sales from the utility shall be no greater than 100,000 megawatthours of electricity.
(iii) The amendments made to this subdivision by the act adding this subparagraph are intended to clarify existing law and apply from December 10, 2011.
(2) (A) A facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource.
(B) Subparagraph (A) does not apply to generation
before January 1, 2017, from a facility located in Stanislaus County that was operational prior to before September 26, 1996.
(f) “Procure” means to acquire through ownership or contract.
(g) “Procurement entity” means any person or corporation authorized by the commission to enter into contracts to procure eligible renewable energy resources on behalf of customers of a retail seller pursuant to subdivision (f) of Section 399.13.
(h) (1) “Renewable energy credit” means a certificate of proof associated with the generation of electricity from an eligible renewable energy resource, issued through the
accounting system established by the Energy Commission pursuant to Section 399.25, that one unit of electricity was generated and delivered by an eligible renewable energy resource.
(2) “Renewable energy credit” includes all renewable and environmental attributes associated with the production of electricity from the eligible renewable energy resource, except for an emissions reduction credit issued pursuant to Section 40709 of the Health and Safety Code and any credits or payments associated with the reduction of solid waste and treatment benefits created by the utilization of biomass or biogas fuels.
(3) (A) Electricity generated by an eligible renewable energy resource attributable to the use of nonrenewable fuels, beyond a de minimis quantity used to generate electricity in the same process through which the facility converts renewable fuel to
electricity, shall not result in the creation of a renewable energy credit. The Energy Commission shall set the de minimis quantity of nonrenewable fuels for each renewable energy technology at a level of no more than 2 percent of the total quantity of fuel used by the technology to generate electricity. The Energy Commission may adjust the de minimis quantity for an individual facility, up to a maximum of 5 percent, if it finds that all of the following conditions are met:
(i) The facility demonstrates that the higher quantity of nonrenewable fuel will lead to an increase in generation from the eligible renewable energy facility that is significantly greater than generation from the nonrenewable fuel alone.
(ii) The facility demonstrates that the higher quantity of nonrenewable fuels will reduce the variability of its electrical output in a manner that results in net
environmental benefits to the state.
(iii) The higher quantity of nonrenewable fuel is limited to either natural gas methane or hydrogen derived by reformation of a fossil fuel.
(B) Electricity generated by a small hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (A) or (D) of paragraph (1) of subdivision (e).
(C) Electricity generated by a conduit hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (B) of paragraph (1) of
subdivision (e).
(D) Electricity generated by a facility engaged in the combustion of municipal solid waste shall not result in the creation of a renewable energy credit. This subparagraph does not apply to renewable energy credits that were generated before January 1, 2017, by a facility engaged in the combustion of municipal solid waste located in Stanislaus County that was operational prior to before September 26, 1996, and sold pursuant to contacts entered into before January 1, 2017.
(i) “Renewables portfolio standard” means the specified percentage of electricity generated by eligible renewable energy resources that a retail seller or a local publicly owned electric utility is required
to procure pursuant to this article.
(j) “Retail seller” means an entity engaged in the retail sale of electricity to end-use customers located within the state, including any of the following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. A community choice aggregator shall participate in the renewables portfolio standard program subject to the same terms and conditions applicable to an electrical corporation.
(3) An electric service provider, as defined in Section 218.3. The electric service provider shall be subject to the same terms and conditions applicable to an electrical corporation pursuant to this article. This paragraph does not impair a contract entered into between an electric service provider
and a retail customer prior to before the suspension of direct access by the commission pursuant to Section 80110 of the Water Code.
(4) “Retail seller” does not include any of the following:
(A) A corporation or person employing cogeneration technology or producing electricity consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity pursuant to Division 27 (commencing with Section 80000) of the Water Code.
(C) A local publicly owned electric utility.
(k) “WECC” means the Western Electricity Coordinating Council of the North American Electric Reliability Corporation, or a successor to the corporation.
SEC. 152.
Section 454.56 of the Public Utilities Code is amended to read:454.56.
(a) The commission, in consultation with the Energy Commission, shall identify all potentially achievable cost-effective(b) A gas corporation shall first meet its unmet resource needs through all available natural gas
methane efficiency and demand reduction resources that are cost effective, reliable, and feasible.
(c) By July 1, 2018, and every four years thereafter, each gas corporation shall report on its progress toward achieving the targets established pursuant to subdivision (a).
(d) Notwithstanding subdivision (c) of Section 25310 of the Public Resources Code, if the commission concludes in its review pursuant to paragraph (1) of subdivision (b) of Section 454.55 that the targets established for gas corporations to achieve pursuant to subdivision (a) are not cost effective, feasible, or pose potential adverse impacts to public health and safety, the commission shall revise the targets to the level that maximizes the amount of energy efficiency savings and demand reduction and shall modify, revise, or update its policies as needed to address barriers
preventing achievement of those targets.
(e) The commission shall ensure that there are sufficient moneys available to gas corporations to meet the efficiency targets established pursuant to subdivision (a). This subdivision shall not be construed to authorize the commission to impose or increase any tax.
SEC. 153.
Section 454.7 of the Public Utilities Code is amended to read:454.7.
The commission shall, to the extent permitted by federal law and consistent with Section 2771, provide cogeneration technology projects with the highest possible priority for the purchase ofSEC. 154.
Section 701.1 of the Public Utilities Code is amended to read:701.1.
(a) (1) The Legislature finds and declares that, in addition to other ratepayer protection objectives, a principal goal of(2) The amendment made to this subdivision by the Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) does not expand the authority of the commission beyond that provided by other law.
(b) The Legislature further finds and declares that, in addition to any appropriate investments in energy production, electrical and natural gas methane
utilities should seek to exploit all practicable and cost-effective conservation and improvements in the efficiency of energy use and distribution that offer equivalent or better system reliability and that are not being exploited by any other entity.
(c) In calculating the cost-effectiveness of energy resources, including conservation and load management options, the commission shall include, in addition to other ratepayer protection objectives, a value for any costs and benefits to the environment, including air quality. The commission shall ensure that any values it develops pursuant to this section are consistent with values developed by the Energy Commission pursuant to Section 25000.1 of the Public Resources Code. However, if the commission determines that a value developed pursuant to this subdivision is not consistent with a value developed by the Energy Commission pursuant to subdivision (c) of Section 25000.1 of the
Public Resources Code, the commission may nonetheless use this value if, in the appropriate record of its proceedings, it states its reasons for using the value it has selected.
(d) (1) In determining the emission values associated with the current operating capacity of existing electric electrical powerplants pursuant to subdivision (c), the commission shall adhere to the following protocol in determining values for air quality costs and benefits to the environment. If the commission finds that an air pollutant that is subject to regulation is a component of residual emissions from an electric
electrical powerplant and that the owner of that powerplant is either of the following:
(1)
(A) Using a tradable emission allowance, right, or offset for that pollutant, which (A) that (i) has been approved by the air quality district regulating the powerplant, (B)
(ii) is consistent with federal and state law, and (C) (iii) has been obtained, authorized, or acquired in a market-based system.
(2)
(B) Paying a tax per measured unit of that pollutant.
The
(2) The commission shall not assign a value or cost to that residual pollutant for the current operating capacity of that powerplant because the alternative protocol for dealing with the pollutant operates to internalize its cost for the purpose of planning for and acquiring new generating resources.
(e) (1) The values determined pursuant to subdivision (c) to represent costs and benefits to the environment shall not be used by the commission, in and of themselves, to require early decommissioning or retirement of an electric utility powerplant that complies with applicable prevailing environmental regulations.
(2) Further, the environmental values determined pursuant to subdivision (c) shall
not be used by the commission in a manner that, when those values are aggregated, will result in advancing an electric utility’s need for new powerplant capacity by more than 15 months.
(f) This subdivision shall apply whenever a powerplant bid solicitation is required by the commission for an electric utility and a portion of the amount of new powerplant capacity, which is the subject of the bid solicitation, is the result of the commission’s use of environmental values to advance that electric utility’s need for new powerplant capacity in the manner authorized by paragraph (2) of subdivision (e). The affected electric utility may propose to the commission any combination of alternatives to that portion of the new powerplant capacity that is the result of the commission’s use of environmental values as authorized by paragraph (2) of subdivision (c). The commission shall approve an alternative in place of the new powerplant capacity if it finds
all of the following:
(1) The alternative has been approved by the relevant air quality district.
(2) The alternative is consistent with federal and state law.
(3) The alternative will result in needed system reliability for the electric electrical utility at least equivalent to that which would result from bidding for new powerplant capacity.
(4) The alternative will result in reducing system operating costs for the electric
electrical utility over those that would result from the process of bidding for new powerplant capacity.
(5) The alternative will result in equivalent or better environmental improvements at a lower cost than would result from bidding for new powerplant capacity.
(g) This section does not require an electric electrical utility to alter the dispatch of its powerplants for environmental purposes.
(h) This section does not preclude an electric
electrical utility from submitting to the commission any combination of alternatives to meet a commission-identified need for new capacity, if the submission is otherwise authorized by the commission.
(i) This section does not change or alter any provision of commission Decision 92-04-045 (April 22, 1992), Application of Pacific Gas and Electric Company for an Ex Parte Order Approving Settlement Agreements Between Pacific Gas and Electric Company and Certain Winning Bidders in Pacific Gas and Electric Company’s Biennial Resource Plan Update Auction.
SEC. 155.
Section 739.4 of the Public Utilities Code is amended to read:739.4.
(a) Any(b) The commission shall require all electrical and gas utilities through which CARE program rates are available to do all of the following, in multilingual formats to the extent printed and recorded information is provided, to facilitate better penetration rates for the CARE program and to protect low-income and senior households from unwarranted disconnection of necessary electric and gas services:
(1) Provide an outgoing message on all calls, where the customer is seeking to establish service or is put on hold, to customer service lines that briefly describes the CARE program in standard language approved by the commission, and that provides a toll-free phone number for customers to call to subscribe to the program or for further information.
(2) Provide information to customers about the CARE program and facilitate subscription to CARE, on all calls in which customers are making payment arrangements, on all collections calls, and on all calls for reconnection of service.
(3) (A) Provide information about the CARE program and other assistance programs, and attempt to qualify customers for CARE, and provide information about individual payment arrangements that allow customers to pay the amounts due over a reasonable period of time, not to exceed 12 months, and attempt to enroll customers in a payment arrangement program, before effecting any disconnection of service for nonpayment or inability to pay energy bills in full.
(B) (i) Offer individual payment arrangements to customers so that the customer is able to pay
amounts due over a reasonable period of time, not to exceed 12 months.
(ii) Prohibit the disconnection of customers that have made, and are in compliance with, payment arrangements offered by an electric or gas utility pursuant to this subparagraph.
(C) Prohibit the disconnection of a delinquent residential customer for amounts due in which the electric or gas utility receives a commitment pledge, letter of intent, purchase order, or other notification that a provider of energy assistance is forwarding payment sufficient to prevent disconnection.
(D) (i) Advise residential customers facing disconnection or who contact the utility to make payment arrangements of the levelizing payment program that allows them to pay a monthly average bill based on 12 months usage.
(ii) Advise residential customers about enrollment in the levelizing payment program in conjunction with completion of payment arrangements, payment under terms of subparagraph (B), or at the customer’s request absent those arrangements.
(E) Nothing in this paragraph is intended to reduce the revenues of any utility extending payment arrangements subject to the terms of the paragraph.
(4) Provide information on customer bills, presented in a conspicuous manner on a front facing page, that indicates that a customer may be eligible for the CARE program. This notice shall be provided quarterly on customer bills.
(c) The commission shall conduct targeted outreach about the program using census block data to effectively target low-income and senior households
throughout the state.
(d) CARE program funds shall be used for the purposes of paragraph (3) of subdivision (b) and outreach pursuant to subdivision (c). The commission’s costs for outreach pursuant to subdivision (c) may shall not exceed five hundred thousand dollars ($500,000) above the amount that the commission currently expends on similar activities related to the CARE program. Energy corporations may recover all reasonable costs from the CARE program funds of implementing this section.
SEC. 156.
Section 740.3 of the Public Utilities Code is amended to read:740.3.
(a) The commission, in cooperation with the Energy Commission, the State Air Resources Board, air quality management districts and air pollution control districts, regulated electrical and gas corporations, and the motor vehicle industry, shall evaluate and implement policies to promote the development of equipment and infrastructure needed to facilitate the use of electricity and(1) The sale-for-resale and the rate-basing of low-emission vehicles and supporting
equipment such as batteries for electric vehicles and compressor stations for natural gas methane fueled vehicles.
(2) The development of statewide standards for electric vehicle charger connections and compressed natural gas methane vehicle fueling connections, including installation procedures and technical assistance to installers.
(b) The commission shall hold public hearings as part of its effort to evaluate and implement the new policies considered in subdivision (a).
(c) The commission’s policies authorizing utilities to develop equipment or infrastructure needed for electricity-powered and natural gas-fueled methane-fueled low-emission vehicles shall ensure that the costs and expenses of those programs are not passed through to electrical or gas ratepayers unless the commission finds and determines that those programs are in the ratepayers’ interest. The commission’s policies shall also ensure that utilities do not unfairly compete with nonutility enterprises.
SEC. 157.
Section 740.8 of the Public Utilities Code is amended to read:740.8.
As used in Section 740.3 or 740.12, “interests” of ratepayers, short- or long-term, mean direct benefits that are specific to ratepayers, consistent with both of the following:(a) Safer, more reliable, or less costly gas or electrical service, consistent with Section 451, including electrical service that is safer, more reliable, or less costly due to either improved use of the electric system or improved integration of renewable energy generation.
(b) Any one of the following:
(1) Improvement in energy efficiency of travel.
(2) Reduction of health and environmental impacts from air
pollution.
(3) Reduction of greenhouse gas emissions related to electricity and natural gas
methane production and use.
(4) Increased use of alternative fuels.
(5) Creating high-quality jobs or other economic benefits, including in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
SEC. 158.
Section 747 of the Public Utilities Code is amended to read:747.
It is the intent of the Legislature that the commission reduce rates for electricity andSEC. 159.
Section 783.5 of the Public Utilities Code is amended to read:783.5.
(a) For purposes of this section, the following terms have the following meanings:(1) “Disadvantaged community” means a San Joaquin Valley community that meets all of the following criteria:
(A) At least 25 percent of residential households with electrical service are enrolled in the CARE program pursuant to Section 739.1.
(B) Has a population greater than 100 persons within its geographic boundaries as identified by the most recent United States Census or a community survey.
(C) Has geographic boundaries no farther than seven miles from the nearest natural gas
methane
pipeline operated by a gas corporation.
(2) “San Joaquin Valley” means the counties Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare.
(b) No later than March 31, 2015, the commission shall initiate a new proceeding to do all of the following:
(1) Identify disadvantaged communities based on the criteria specified in subdivision (a).
(2) Analyze the economic feasibility of the following options:
(A) Extending natural gas
methane pipelines to those disadvantaged communities.
(B) Increasing subsidies for electricity for residential customers in those disadvantaged communities.
(C) Other alternatives that would increase access to affordable energy in those disadvantaged communities that the commission deems appropriate.
(c) The commission shall determine whether any of the options analyzed in the proceeding would increase access to affordable energy in a cost-effective manner. For these options, the commission shall take appropriate action and determine appropriate funding sources.
SEC. 160.
Section 784.2 of the Public Utilities Code is amended to read:784.2.
Before the exhaustion of the funds made available pursuant to the monetary incentive program for biomethane projects adopted in Decision 15-06-029 (June 11, 2015), Decision Regarding the Costs of Compliance with Decision 14-01-034 and Adoption of Biomethane Promotion Policies and Program, and no later than July 1, 2019, the commission shall open a proceeding to consider options to further the goals of Section 399.24, including consideration of whether to allow recovery in rates of the costs of investments to do each of the following:(a) Ensure that prudent and reasonable investments for infrastructure pursuant to subdivisions (b) and (c) provide a direct benefit, such as safety, reliability, affordability, or reducing emissions of greenhouse gases, to all classes of ratepayers and are
in the interests of all classes of ratepayers.
(b) Facilitate direct investment in the procurement and installation of utility infrastructure necessary to achieve interconnection between the natural gas methane transmission and distribution pipeline network and biomethane generation and collection equipment, and of gathering lines for a dairy cluster biomethane project.
(c) Provide for the installation of utility infrastructure to achieve interconnection with facilities that generate biomethane.
SEC. 161.
Section 785.2 of the Public Utilities Code is amended to read:785.2.
The commission shall investigate, as part of the rate proceeding for any gas corporation, impediments to the in-state production and storage ofSEC. 162.
Section 890 of the Public Utilities Code is amended to read:890.
(a) On and after January 1, 2001, there shall be imposed a surcharge on all(b) (1) Except as specified in Section 898, a public utility gas corporation, as defined in subdivision (b) of Section 891, shall collect the surcharge imposed pursuant to subdivision (a) from any person consuming natural gas methane in this state who receives gas service from the public utility gas corporation.
(2) A public utility gas corporation is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts which that
have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the public utility gas corporation has previously paid the amount of the surcharge it may, under regulations prescribed by the State Board of Equalization, take as a deduction on its return the amount found to be worthless and charged off. If any accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after that collection. The commission may by regulation promulgate other rules with respect to uncollected or worthless accounts as it determines to be necessary to the fair and efficient administration of this part.
(c) Except as specified in Section 898, all persons consuming natural gas
methane
in this state that has been transported by an interstate pipeline, as defined in subdivision (c) of Section 891, shall be liable for the surcharge imposed pursuant to subdivision (a).
(d) The commission shall annually determine the amount of money required for the following year to administer this chapter and fund the natural gas
methane related programs described in subdivision (a) for the service territory of each public utility gas corporation.
(e) The commission shall annually establish a surcharge rate for each class of customer for the service territory of each public utility gas corporation. A customer of an interstate gas pipeline, as defined in Section 891, shall pay the same surcharge rate as the customer would pay if the customer received service from the public utility gas corporation in whose service territory the customer is located. The commission shall determine the total volume of retail natural gas methane transported within the service territory of a utility gas provider, that is not subject to exemption pursuant to Section
896, for the purpose of establishing the surcharge rate.
(f) The commission shall allocate the surcharge for gas used by all customers, including those customers who were not subject to the surcharge prior to before January 1, 2001.
(g) The commission shall notify the State Board of Equalization of the surcharge rate for each class of customer served by an interstate pipeline in the service territory of a public utility gas corporation.
(h) The State Board of Equalization shall notify each person who consumes natural gas
methane delivered by an interstate pipeline of the surcharge rate for each class of customer within the service territory of a public utility gas corporation.
(i) The surcharge imposed pursuant to subdivision (a) shall be in addition to any other charges for natural gas methane sold or transported for consumption in this state. Effective on July 1, 2001, the surcharge imposed pursuant to this article shall be identified as a separate line item on the bill of a customer of a public utility gas corporation.
(j) Notwithstanding subdivision (a), public utility gas corporations shall continue to collect in rates those costs of programs described in
subdivision (a) of Section 890 that are uncollected prior to before the operative date of this article.
SEC. 163.
Section 891 of the Public Utilities Code is amended to read:891.
(a) “Gas utility” means any public utility gas corporation or interstate pipeline as defined in this section.(b) “Public utility gas corporation” means a public utility gas corporation as defined in Section 216.
(c) “Interstate pipeline” means any entity that owns or operates a natural gas methane pipeline delivering natural gas
methane to consumers in the state and is subject to rate regulation by the Federal Energy Regulatory Commission.
(d) Each gas utility shall notify the State Board of Equalization of its status under this section. Each person who consumes natural gas methane delivered by an interstate pipeline shall annually register with the State Board of Equalization. The State Board of Equalization may require any documentation that it determines to be necessary to implement this article.
SEC. 164.
Section 892 of the Public Utilities Code is amended to read:892.
The revenue from the surcharge imposed pursuant to this article and collected by a public utility gas corporation shall be paid to the State Board of Equalization in the form of remittances. Persons consumingSEC. 165.
Section 892.2 of the Public Utilities Code is amended to read:892.2.
On or before the last day of the month following each calendar quarter, a return for the preceding quarterly period shall be filed with the State Board of Equalization in such form as the board may prescribe. A return shall be filed by every public utility gas corporation, and by every person consuming, as defined in this article,SEC. 166.
Section 896 of the Public Utilities Code is amended to read:896.
“Consumption” means the use or employment ofSEC. 167.
Section 950 of the Public Utilities Code is amended to read:950.
For purposes of this chapter, the following terms have the following meanings:(a) “Commission-regulated gas pipeline facility” means an intrastate gas pipeline facility as defined in Section 60101 of Title 49 of the United States Code, that is subject to the safety regulatory authority of the commission to the extent authorized in the certification submitted by the commission and approved by the United States Secretary of Transportation pursuant to Section 60105 of Title 49 of the United States Code, including each of the following pipelines:
(1) An intrastate distribution line, which is a pipeline that is not subject to the jurisdiction of the Federal Energy Regulatory Commission pursuant to Section 717(b) of Title 15 of
the United States Code because it is used for the local distribution of natural gas. methane.
(2) An intrastate transmission line, which is a transmission pipeline that the commission, pursuant to Section 717(c) of Title 15 of the United States Code, has certified to the Federal Energy Regulatory Commission as being subject to the regulatory jurisdiction of the commission over rates and service. For these purposes, a transmission pipeline means a pipeline other than a gathering line that: (A) transports gas from a gathering line or storage facility to a distribution center, storage facility, or large volume customer that is not downstream from a distribution center, (B) operates at a hoop stress of 20 percent or more of specified minimum yield strength, or
(C) transports gas within a storage field.
(3) An intrastate gathering line, which is a pipeline that transports gas from a current production facility to a transmission line or main.
(4) A mobilehome park master-metered natural gas
methane distribution system that is subject to the commission’s safety inspection and enforcement program pursuant to Chapter 4 (commencing with Section 4351) of Division 2.
(5) A propane distribution system that is subject to the commission’s safety inspection and enforcement program pursuant to Chapter 4.1 (commencing with Section 4451) of Division 2.
(b) “Compatible emergency response standards” means emergency response standards that are applicable to intrastate transmission and distribution lines that are in addition to, or more stringent than, the minimum safety standards adopted by the United States Department of Transportation pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code and that the commission is authorized to adopt pursuant to Section 60104(c) of that chapter.
(c) “High consequence area” has the same meaning as defined in the regulations adopted by the United States Department of Transportation pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code (49 C.F.R. 192.903, as adopted January 1, 2011, or a successor regulation).
SEC. 168.
Section 955 of the Public Utilities Code is amended to read:955.
(a) This article shall be known and may be cited as the Natural Gas Pipeline Safety Act of 2011.(b) The commission is the state authority responsible for regulating and enforcing intrastate gas pipeline transportation and pipeline facilities pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code, including the development, submission, and administration of a state pipeline safety program certification for natural gas methane pipelines pursuant to Section 60105 of that chapter.
SEC. 169.
Section 958 of the Public Utilities Code is amended to read:958.
(a) Each gas corporation shall prepare and submit to the commission a proposed comprehensive pressure testing implementation plan for all intrastate transmission lines to either pressure test those lines or to replace all segments of intrastate transmission lines that were not pressure tested or that lack sufficient details related to performance of pressure testing. The comprehensive pressure testing implementation plan shall provide for testing or replacing all intrastate transmission lines as soon as practicable. The comprehensive pressure testing implementation plan shall set forth criteria on which pipeline segments were identified for replacement instead of pressure testing.(b) The comprehensive pressure testing implementation plan shall include a timeline for
completion that is as soon as practicable, and includes interim safety enhancement measures, including increased patrols and leak surveys, pressure reductions, prioritization of pressure testing for critical pipelines that must run at or near maximum allowable operating pressure values that result in hoop stress levels at or above 30 percent of specified minimum yield stress, and any other measure that the commission determines will enhance public safety during the implementation period. Engineering-based assumptions may be used to determine maximum allowable operating pressure in the absence of complete records, but only as an interim measure until such time as all the lines have been tested or replaced, in order to allow the gas system to continue to operate.
(c) At the completion of the implementation period, all California natural gas
methane intrastate transmission line segments shall meet all of the following:
(1) Have been pressure tested.
(2) Have traceable, verifiable, and complete records readily available.
(3) Where warranted, be capable of accommodating in-line inspection devices.
SEC. 170.
Section 963 of the Public Utilities Code is amended to read:963.
(a) For purposes of this section, the following terms have the following meanings:(1) “After-meter services” includes, but is not limited to, leak investigation, inspecting customer piping and appliances, carbon monoxide investigation, pilot relighting, and high bill investigation.
(2) “Basic gas service” includes transmission, storage for reliability of service, and distribution of natural gas, methane, purchasing natural gas
methane
on behalf of a customer, revenue cycle services, and after-meter services.
(3) “Metering services” includes, but is not limited to, gas meter installation, meter maintenance, meter testing, collecting and processing consumption data, and all related services associated with the meter.
(4) “Revenue cycle services” means metering services, billing the customer, collection, and related customer services.
(b) The Legislature finds and declares all of the following:
(1) In order to ensure that all core customers of a gas corporation continue to receive safe basic gas service, each existing gas corporation shall continue to provide this essential service.
(2) A customer shall not
be required to pay separate fees for utilizing services that protect public or customer safety.
(3) It is the policy of the state that the commission and each gas corporation place safety of the public and gas corporation employees as the top priority. The commission shall take all reasonable and appropriate actions necessary to carry out the safety priority policy of this paragraph consistent with the principle of just and reasonable cost-based rates.
(c) (1) The commission shall require each gas corporation to provide bundled basic gas service to all core customers in its service territory unless the customer chooses or contracts to have natural gas methane purchased
and supplied by another entity.
(2) A gas corporation shall continue to be the exclusive provider of revenue cycle services to all customers in its service territory, except that an entity purchasing and supplying natural gas
methane under the commission’s existing core aggregation program may perform billing and collection services for its customers under the same terms as currently authorized by the commission, and except that a supplier of natural gas methane to noncore customers may perform billing and collection for natural gas methane supply for its customers.
(3) The gas corporation shall continue to calculate its charges for services provided by that corporation. If the commission establishes credits to be provided by the gas corporation to
core aggregation or noncore customers who obtain billing or collection services from entities other than the gas corporation, the credit shall be equal to the billing and collection services costs actually avoided by the gas corporation.
(4) The commission shall require the distribution rate to continue to include after-meter services and shall authorize sufficient revenues and employee staffing to provide for prompt provision of these services to the public, consistent with the policy developed and implemented by the gas corporation and approved by the commission pursuant to Section 961.
SEC. 171.
Section 972 of the Public Utilities Code is amended to read:972.
(a) A penalty assessed against a gas corporation pursuant to this part in regards to a(b) This section shall not affect or be interpreted to affect the authority of the State Air Resources Board to adopt rules and regulations to reduce greenhouse gas emissions at natural gas methane storage facilities or to require mitigation of natural gas methane leaks from those
facilities.
SEC. 172.
Section 975 of the Public Utilities Code is amended to read:975.
(a) For purposes of this chapter, “commission-regulated gas pipeline facility” has the same meaning as defined in Section 950.(b) With priority given to safety, reliability, and affordability of service, the commission shall adopt rules and procedures governing the operation, maintenance, repair, and replacement of those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines, as described in paragraphs (1) and (2) of subdivision (a) of Section 950, to achieve both of the following:
(1) Minimize leaks as a hazard to be mitigated pursuant to paragraph (1) of subdivision (d) of Section 961, consistent with the requirements of Section 192.703(c) of Subpart M of
Title 49 of the Code of Federal Regulations, the commission’s General Order 112-E, and their successors.
(2) While giving due consideration to the cost considerations of Section 977, reduce emissions of natural gas methane from those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines to the maximum extent feasible in order to advance the state’s goals in reducing emissions of greenhouse gases pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
(c) As soon as practicable, the commission shall require gas corporations to file a report that includes, but is
not limited to, all of the following:
(1) A summary of utility leak management practices.
(2) A list of new methane leaks in 2013 by grade.
(3) A list of open leaks that are being monitored or are scheduled to be repaired.
(4) A best estimate of gas loss due to leaks.
(d) Not later than January 15, 2015, the commission, in consultation with the State Air Resources Board, shall commence a proceeding to adopt rules and procedures for those commission-regulated pipeline facilities that are intrastate transmission and distribution lines, as respectively described in paragraphs (1) and (2) of subdivision (a) of Section 950, to achieve the goals of subdivision (b).
(e) The rules and procedures adopted pursuant to subdivision (d) shall accomplish all of the following:
(1) Provide for the maximum technologically feasible and cost-effective avoidance, reduction, and repair of leaks and leaking components in those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines within a reasonable time after discovery, consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) to achieve the goals in subdivision (b).
(2) Provide for the repair of leaks as soon as reasonably possible after discovery, consistent with established safety requirements and the goals of reducing air pollution and the climate change impacts of methane emissions.
(3) Evaluate the operations, maintenance, and repair practices of those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines to determine whether existing practices are effective at reducing methane leaks and promoting public safety, consistent with Section 961, achieve the goals of subdivision (b), and whether alternative practices may be more effective at achieving the goals of subdivision (b).
(4) Establish and require the use of best practices for leak surveys, patrols, leak survey technology, leak prevention, and leak reduction. The commission shall consider in the development of best practices the quality of materials and equipment. Collected leak data shall remain the property of the utility and shall be available to the commission and parties in commission proceedings as determined by the commission or specified by statute.
(5) Establish protocols and procedures for the development and use of metrics to quantify the volume of emissions from leaking gas pipeline facilities, and for evaluating and tracking leaks geographically and over time, that may be incorporated into the plans required by Section 961, or into other state emissions tracking systems, or both, including the regulations for the reporting of greenhouse gases of the State Air Resources Board. The quantification of emissions shall provide operators, the commission, and the public with accurate information about the number and severity of leaks and about the quantity of natural gas methane that is emitted into the atmosphere over time.
(6) To the extent
feasible, require the owner of each commission-regulated gas pipeline facility that is an intrastate transmission or distribution line to calculate and report to the commission and the State Air Resources Board a baseline systemwide leak rate, along with any data and computer models used in making that calculation, to periodically update that systemwide leak rate calculation, and to annually report on measures that will be taken in the following year to reduce the systemwide leak rate to achieve the goals of subdivision (b).
(f) The rules and procedures, including best practices and repair standards, shall be incorporated into the safety plans required by Section 961 and the applicable general orders adopted by the commission.
(g) Consistent with subdivision (e) of Section 961, the commission shall facilitate robust ongoing participation of the workforce of gas corporations and
those state and federal entities that have regulatory roles of relevance in all aspects of the proceeding to ensure that the rules and procedures it adopts are not inconsistent with the regulations and procedures adopted by those agencies. Nothing in this section affects the commission’s authority to determine eligibility for intervenor compensation.
(h) Nothing in this article shall affect or shall be interpreted to affect the existing authority of the State Air Resources Board to adopt rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions and to maintain and continue emission reductions under the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
SEC. 173.
Section 1002.5 of the Public Utilities Code is amended to read:1002.5.
In issuing a certificate of convenience and necessity for additionalSEC. 174.
Section 1821 of the Public Utilities Code is amended to read:1821.
As used in this article, the following definitions apply:(a) “Computer model” means a computer program.
(b) “Operations model” means a computer model that replicates, lists, describes, or forecasts a public utility’s internal functions, including, but not limited to, its accounting procedures, cash management procedures, personnel assignments and procedures, and inventory control.
(c) “Planning model” means a computer model that replicates, lists, describes, or forecasts a public utility’s complex functions, including, but not limited to, the forecasting of future loads and resources, calculating costs of electricity
generation, producing financial statements, and calculating costs of natural gas
methane production or supply.
(d) “Public utility” includes every public utility and every business which that is a commission regulated subsidiary or commission regulated affiliate of a public utility. “Public utility” does not include a common carrier or a telephone corporation whose service is determined to be competitive by the commission.
(e) “Verify” means to assess the extent to which the computer model mimics reality.
SEC. 175.
Section 2104.7 of the Public Utilities Code is amended to read:2104.7.
(a) Notwithstanding Section 2104, all moneys collected pursuant to any settlements, unless restricted by a court for another purpose, abatement orders, fines, or penalties by the commission from a gas corporation serving the Los Angeles Basin pursuant to an administrative enforcement or legal proceeding relating to the well failure at the Aliso Canyon(b) For purposes of this section, “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.
SEC. 176.
Section 2775.7 of the Public Utilities Code is amended to read:2775.7.
(a) (1) If the commission determines that a moratorium on new(A) The Assembly Committee on Utilities and Energy.
(B) The Senate Committee on Energy, Utilities and Communications.
(C) All
affected gas corporations.
(2) The commission shall include in the report to the policy committees of the Legislature specified in paragraph (1) factual findings supporting the need to propose a moratorium on new natural gas methane service connections. The report shall include, but is not limited to, all of the following:
(A) The number of pending gas service connection applications with each affected gas corporation.
(B) The estimated gas load deferred under the proposed moratorium.
(C) The system constraints that led to the proposed moratorium.
(D) Alternative actions considered to address the proposed need for a moratorium, including increasing or restoring natural gas
methane transmission and storage infrastructure, and the reason those actions were not taken or were insufficient.
(E) The process for a customer to request an exemption from the moratorium.
(b) When a gas corporation receives notification from the commission that an action is pending to suspend new gas service connections, the gas corporation shall immediately notify any known potential or current customers that may experience a service impact as a result of the proposed suspension.
(c) The commission shall, at the yearly informational hearings pursuant to Section 321.6, present to the Assembly Committee on Utilities and Energy and the Senate Committee on Energy, Utilities and Communications the status of natural gas
methane
service connections and efforts to provide natural gas methane supply.
SEC. 177.
Section 2801 of the Public Utilities Code is amended to read:2801.
The Legislature hereby finds and declares that in order to promote the more rapid development of new sources ofSEC. 178.
Section 2802 of the Public Utilities Code is amended to read:2802.
“Private energy producer” includes every person, corporation, city, county, district, and public agency of the state generating or producing electricity not generated from conventional sources orSEC. 179.
Section 2804 of the Public Utilities Code is amended to read:2804.
“Transmission service” means the intrastate transfer of electricity orSEC. 180.
Section 2806 of the Public Utilities Code is amended to read:2806.
“Fossil fuel” means a mixture of hydrocarbons including coal, petroleum, orSEC. 181.
Section 2811 of the Public Utilities Code is amended to read:2811.
In order to promote the more efficient use and distribution ofSEC. 182.
Section 2812 of the Public Utilities Code is amended to read:2812.
Upon application of a private energy producer, and after notice to any affected public utility and hearing thereon, the commission shall authorize such producer to construct an interconnection for the purpose of transportingSEC. 183.
Section 2836.7 of the Public Utilities Code is amended to read:2836.7.
By June 1, 2018, all of the following shall occur:(a) (1) The Los Angeles Department of Water and Power shall, in coordination with the city council of the City of Los Angeles, if it chooses to participate, determine the cost-effectiveness and feasibility of deploying, on an expedited basis, a minimum aggregate total of 100 megawatts of cost-effective energy storage solutions to help address the Los Angeles Basin’s electrical system operational limitations resulting from reduced gas deliverability from the Aliso Canyon natural gas methane storage facility.
(2) If the Los Angeles Department of Water and Power determines pursuant to paragraph (1) that deploying the cost-effective energy storage solutions, as described in paragraph (1), is cost effective and feasible, it shall consider deploying those cost-effective energy storage solutions after June 1, 2018.
(b) The commission shall, to the extent that doing so is cost effective and feasible and necessary to meet the reliability requirements of the electrical system in the Los Angeles Basin, direct an electrical corporation serving the Los Angeles Basin to deploy, pursuant to a competitive solicitation, a minimum aggregate total of 20 megawatts of cost-effective energy storage solutions to help address the Los Angeles Basin’s electrical system operational limitations resulting from reduced gas deliverability from the Aliso Canyon natural gas
methane storage facility. An electrical corporation may count any cost-effective energy storage solution that it deploys pursuant to this subdivision towards the capacity requirement established pursuant to Section 2838.2 if the cost-effective storage solution that it deploys is a distributed energy storage system, as defined in subdivision (a) of Section 2838.2.
(c) (1) It is the intent of the Legislature that the commission and all public utilities having jurisdiction affected by this section or by actions taken pursuant to this section shall take immediate actions to support rapid compliance with this section, including by allowing or developing fast-tracked permitting, interconnection studies, and interconnection processes, and through rule waivers or adjustments if appropriate, to support rapid or more rapid site acquisition for energy storage project developments and customer
acquisition of energy storage solutions. This paragraph is not intended to in any way modify the obligations of the commission or a public utility under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(2) It is the intent of the Legislature that local governments having jurisdiction affected by this section or by actions taken pursuant to this section strongly consider taking immediate actions to support rapid compliance with this section, including by allowing or developing fast-tracked permitting and waiving or adjusting procedural requirements, to support rapid or more rapid site acquisition for energy storage project developments and customer acquisition of energy storage solutions. This paragraph is not intended to in any way modify the obligations of a local government under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code).
(d) For purposes of this section, the following terms have the following meanings:
(1) “Cost-effective energy storage solution” means any grid-connected energy storage facility developed on or after the effective date of this section of any type or technology, including transmission-connected, distribution-connected, and behind-the-meter sited or located resources, that will mitigate the limitation on gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas methane storage facility. Cost-effective energy storage solutions shall be designed to be capable of providing a four-hour duration resource adequacy service, which
may include energy delivery for the full four hours at a rated output, and shall be capable of delivering electricity to the source of demand and required to accept and execute reasonable remote or centralized dispatch commands.
(2) To “deploy” means to procure a cost-effective energy storage solution on or after the effective date of this section that may be a third-party-owned solution, or a solution procured pursuant to a power-purchase agreement or rebate program, or pursuant to any other third-party ownership structure, as allowed by applicable rules governing electric service and procurement, sited or located where the project will mitigate the limitation on gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas methane
storage facility.
(3) “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.
SEC. 184.
Section 2840.6 of the Public Utilities Code is amended to read:2840.6.
(a) It is the intent of the Legislature that state policies dramatically advance the efficiency of the state’s use of(b) It is the intent of the Legislature to reduce wasteful consumption of energy through improved residential, commercial, institutional, industrial, and manufacturer utilization
use of waste heat whenever it is cost effective, technologically feasible, and environmentally beneficial, particularly when this reduces emissions of carbon dioxide and other carbon-based greenhouse gases.
(c) It is the intent of the Legislature to support and facilitate both customer- and utility-owned combined heat and power systems.
(d) This article does not apply to, and shall not impact, combined heat and power systems in operation prior to before January 1, 2008, or combined heat and power systems with a generating capacity greater than 20 megawatts.
SEC. 185.
Section 2841 of the Public Utilities Code is amended to read:2841.
(a) The commission may require an electrical corporation to purchase from an eligible customer-generator, excess electricity that is delivered to the grid that is generated by a combined heat and power system that is in compliance with Section 2843. The commission may establish a maximum kilowatthours limitation on the amount of excess electricity that an electrical corporation is required to purchase if the commission finds that the anticipated excess electricity generated has an adverse effect on long-term resource planning or reliable operation of the grid. The commission shall establish, in consultation with the Independent System Operator, tariff provisions that facilitate both(b) (1) Every electrical corporation shall file with the commission a standard tariff for the purchase of excess electricity from an eligible customer-generator.
(2) The tariff shall provide for payment for every kilowatthour delivered to the electrical grid by the combined heat and power system at a price determined by the commission.
(3) The tariff shall include flexible rates with options for different durations, not to exceed 10 years, and fixed or variable rates relative to the cost of natural gas. methane.
(4) The commission shall ensure that ratepayers not utilizing using combined heat and power systems are held indifferent to the existence of this tariff.
(c) The commission, in reviewing the tariff filed by an electrical corporation, shall establish time-of-delivery rates that encourage demand management and net generation of electricity during periods of peak system demand.
(d) Every electrical corporation shall make the tariff available to eligible customer-generators that own, or lease, and operate a combined heat and power system within the service territory of the electrical corporation, upon request. An electrical corporation
may make the terms of the tariff available to an eligible customer in the form of a standard contract.
(e) The costs and benefits associated with any tariff or contract entered into by an electrical corporation pursuant to this section shall be allocated to all benefiting customers. For purposes of this section “benefiting customers” may, as determined by the commission, include bundled service customers of the electrical corporation, customers of the electrical corporation that receive their electric electrical service through a direct transaction, as defined in subdivision (c) of Section 331, and customers of an electrical corporation that receive their electric
electrical service from a community choice aggregator, as defined in Section 331.1.
(f) The physical generating capacity of the combined heat and power system shall count toward the resource adequacy requirements of load-serving entities for purposes of Section 380.
(g) The commission shall adopt or maintain standby rates or charges for combined heat and power systems that are based only upon assumptions that are supported by factual data, and shall exclude any assumptions that forced outages or other reductions in electricity generation by combined heat and power systems will occur simultaneously on multiple systems, or during periods of peak electrical system demand, or both.
(h) The commission may modify or adjust the requirements of this article for any electrical
corporation with less than 100,000 service connections, as individual circumstances merit.
SEC. 186.
Section 2851 of the Public Utilities Code is amended to read:2851.
(a) In implementing the California Solar Initiative, the commission shall do all of the following:(1) (A) The commission shall authorize the award of monetary incentives for up to the first megawatt of alternating current generated by solar energy systems that meet the eligibility criteria established by the Energy Commission pursuant to Chapter 8.8 (commencing with Section 25780) of Division 15 of the Public Resources Code. The commission shall determine the eligibility of a solar energy system, as defined in Section 25781 of the Public Resources Code, to receive monetary incentives until the time the Energy Commission establishes eligibility criteria pursuant to Section 25782. Monetary incentives shall not be awarded for solar energy systems
that do not meet the eligibility criteria. The incentive level authorized by the commission shall decline each year following implementation of the California Solar Initiative, at a rate of no less than an average of 7 percent per year, and, except as provided in subparagraph (B), shall be zero as of December 31, 2016. The commission shall adopt and publish a schedule of declining incentive levels no less than 30 days in advance of the first decline in incentive levels. The commission may develop incentives based upon the output of electricity from the system, provided those incentives are consistent with the declining incentive levels of this paragraph and the incentives apply to only the first megawatt of electricity generated by the system.
(B) The incentive level for the installation of a solar energy system pursuant to Section 2852 shall be zero as of December 31, 2021.
(2) The commission shall adopt a performance-based incentive program so that by January 1, 2008, 100 percent of incentives for solar energy systems of 100 kilowatts or greater and at least 50 percent of incentives for solar energy systems of 30 kilowatts or greater are earned based on the actual electrical output of the solar energy systems. The commission shall encourage, and may require, performance-based incentives for solar energy systems of less than 30 kilowatts. Performance-based incentives shall decline at a rate of no less than an average of 7 percent per year. In developing the performance-based incentives, the commission may:
(A) Apply performance-based incentives only to customer classes designated by the commission.
(B) Design the performance-based incentives so that customers may receive a higher level of incentives than under incentives based on
installed electrical capacity.
(C) Develop financing options that help offset the installation costs of the solar energy system, provided that this financing is ultimately repaid in full by the consumer or through the application of the performance-based rebates.
(3) By January 1, 2008, the commission, in consultation with the Energy Commission, shall require reasonable and cost-effective energy efficiency improvements in existing buildings as a condition of providing incentives for eligible solar energy systems, with appropriate exemptions or limitations to accommodate the limited financial resources of low-income residential housing.
(4) Notwithstanding subdivision (g) of Section 2827, the commission may develop a time-variant tariff that creates the maximum incentive for ratepayers to install solar energy systems
so that the system’s peak electricity production coincides with California’s peak electricity demands and that ensures that ratepayers receive due value for their contribution to the purchase of solar energy systems and customers with solar energy systems continue to have an incentive to use electricity efficiently. In developing the time-variant tariff, the commission may exclude customers participating in the tariff from the rate cap for residential customers for existing baseline quantities or usage by those customers of up to 130 percent of existing baseline quantities, as required by Section 739.9. Nothing in this paragraph authorizes the commission to require time-variant pricing for ratepayers without a solar energy system.
(b) Notwithstanding subdivision (a), in implementing the California Solar Initiative, the commission may authorize the award of monetary incentives for solar thermal and solar water heating devices, in a total amount
up to one hundred million eight hundred thousand dollars ($100,800,000).
(c) (1) In implementing the California Solar Initiative, the commission shall not allocate more than fifty million dollars ($50,000,000) to research, development, and demonstration that explores solar technologies and other distributed generation technologies that employ or could employ solar energy for generation or storage of electricity or to offset natural gas methane usage. Any program that allocates additional moneys to research, development, and demonstration shall be developed in collaboration with the Energy Commission to ensure there is no duplication of efforts, and adopted by the commission through a rulemaking or other appropriate public proceeding.
Any grant awarded by the commission for research, development, and demonstration shall be approved by the full commission at a public meeting. This subdivision does not prohibit the commission from continuing to allocate moneys to research, development, and demonstration pursuant to the self-generation incentive program for distributed generation resources originally established pursuant to Chapter 329 of the Statutes of 2000, as modified pursuant to Section 379.6.
(2) The Legislature finds and declares that a program that provides a stable source of monetary incentives for eligible solar energy systems will encourage private investment sufficient to make solar technologies cost effective.
(d) (1) The commission shall not impose any charge upon the consumption of natural gas,
methane, or upon natural gas methane ratepayers, to fund the California Solar Initiative.
(2) Notwithstanding any other provision of law, any charge imposed to fund the program adopted and implemented pursuant to this section shall be imposed upon all customers not participating in the California Alternate Rates for Energy (CARE) or family electric rate assistance (FERA) programs, including those residential customers subject to the rate limitation specified in Section 739.9 for existing baseline quantities or usage up to 130 percent of existing baseline quantities of electricity.
(3) The costs of the program adopted and implemented pursuant to this section shall not be recovered from customers participating in the California Alternate Rates for Energy or CARE program established pursuant to Section 739.1, except to the extent that program costs are recovered out of the nonbypassable system benefits charge authorized pursuant to Section 399.8.
(e) Except as provided in subdivision (f), in implementing the California Solar Initiative, the commission shall ensure that the total cost over the duration of the program does not exceed three billion five hundred fifty million eight hundred thousand dollars ($3,550,800,000). Except as provided in subdivision (f), financial components of the California Solar Initiative shall consist of the following:
(1) Programs under the supervision of the commission funded by charges collected from customers of San
Diego Gas and Electric Company, Southern California Edison Company, and Pacific Gas and Electric Company. Except as provided in subdivision (f), the total cost over the duration of these programs shall not exceed two billion three hundred sixty-six million eight hundred thousand dollars ($2,366,800,000) and includes moneys collected directly into a tracking account for support of the California Solar Initiative.
(2) Programs adopted, implemented, and financed in the amount of seven hundred eighty-four million dollars ($784,000,000), by charges collected by local publicly owned electric utilities pursuant to Section 2854. Nothing in this subdivision shall give the commission power and jurisdiction with respect to a local publicly owned electric utility or its customers.
(3) (A) Programs for the installation of solar energy systems on new construction (New
Solar Homes Partnership Program), administered by the Energy Commission, and funded by charges in the amount of four hundred million dollars ($400,000,000), collected from customers of San Diego Gas and Electric Company, Southern California Edison Company, and Pacific Gas and Electric Company. If the commission is notified by the Energy Commission that funding available pursuant to Section 25751 of the Public Resources Code for the New Solar Homes Partnership Program and any other funding for the purposes of this paragraph have been exhausted, the commission may require an electrical corporation to continue administration of the program pursuant to the guidelines established for the program by the Energy Commission, until the funding limit authorized by this paragraph has been reached. The commission may determine whether a third party, including the Energy Commission, should administer the utility’s continuation of the New Solar Homes Partnership Program. The commission, in consultation with the Energy
Commission, shall supervise the administration of the continuation of the New Solar Homes Partnership Program by an electrical corporation or third-party administrator. After the exhaustion of funds, the Energy Commission shall notify the Joint Legislative Budget Committee 30 days prior to before the continuation of the program. This subparagraph shall become inoperative on June 1, 2018.
(B) If the commission requires a continuation of the program pursuant to subparagraph (A), any funding made available pursuant to the continuation program shall be encumbered through the issuance of rebate reservations by no later than June 1, 2018, and disbursed by no later than December 31, 2021.
(4) The
changes made to this subdivision by Chapter 39 of the Statutes of 2012 do not authorize the levy of a charge or any increase in the amount collected pursuant to any existing charge, nor do the changes add to, or detract from, the commission’s existing authority to levy or increase charges.
(f) Upon the expenditure or reservation in any electrical corporation’s service territory of the amount specified in paragraph (1) of subdivision (e) for low-income residential housing programs pursuant to subdivision (c) of Section 2852, the commission shall authorize the continued collection of the charge for the purposes of Section 2852. The commission shall ensure that the total amount collected pursuant to this subdivision does not exceed one hundred eight million dollars ($108,000,000). Upon approval by the commission, an electrical corporation may use amounts collected pursuant to subdivision (e) for purposes of funding the general market portion of
the California Solar Initiative, that remain unspent and unencumbered after December 31, 2016, to reduce the electrical corporation’s portion of the total amount collected pursuant to this subdivision.
SEC. 187.
Section 3252 of the Public Utilities Code is amended to read:3252.
SEC. 188.
Section 3255 of the Public Utilities Code is amended to read:3255.
(a) A person involved in the production of(b) Within 10 days of submitting an application to the commission for an order authorizing a public utility to transfer a real property easement to a person, the public utility shall provide written notification of the application and of the commission’s pending review of the application, to each owner of real property affected by the easement. Costs of notification required by this subdivision shall be paid by the person to whom the public utility proposes to transfer a real property easement.
SEC. 189.
Section 3310 of the Public Utilities Code is amended to read:3310.
The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, and to ensure a sufficient and reliable supply of electricity for California’s consumers at just and
reasonable rates.
(b) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.
(c) Finance natural gas methane transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.
(d) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division.
(e) Provide financing for owners of aged, inefficient, electric electrical powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
SEC. 190.
Section 3325 of the Public Utilities Code is amended to read:3325.
(a) The authority shall be governed by a five-member board of directors that shall consist of the following persons:(1) Four individuals appointed by the Governor, subject to confirmation by the Senate. These four members shall have considerable experience in power electrical generation, natural gas methane transportation or storage, energy
conservation, financing, or ratepayer advocacy.
(2) The State Treasurer.
(b) (1) For the initial term, the appointed members shall serve staggered terms as follows:
(A) The member appointed first shall serve a term of four years.
(B) The member appointed second shall serve a term of three years.
(C) The member appointed third shall serve a term of two years.
(D) The member appointed fourth shall serve a term of one year.
(2) The second and any subsequent terms shall be for four years.
(c) A quorum is necessary for any action to be taken by the board. Three of the members shall constitute a quorum, and the affirmative vote of three board members shall be necessary for any action to be taken by the board.
(d) (1) The chairperson of the board shall be appointed by the Governor. This position shall be a full-time, paid position.
(2) Except as provided in this subdivision, the members of the board shall serve without compensation, but shall be reimbursed for actual and necessary expenses incurred in the performance of their duties to the extent that reimbursement for these expenses is not otherwise provided or payable by another public agency, and shall receive one hundred dollars ($100) for each full day of attending meetings of the authority.
SEC. 191.
Section 3365 of the Public Utilities Code is amended to read:3365.
The authority may provide loans,(a) The purchase of consumer appliances and home improvements with electric
electrical and gas energy efficiency or renewable energy characteristics, as approved by the Energy Commission, the commission, or a participating local publicly owned electric utility, as applicable.
(b) The purchase or lease of business equipment and facility improvements with electric electrical and gas energy efficiency or renewable energy characteristics, as approved by the Energy Commission, the commission, or a participating local publicly owned electric utility, as applicable.
(c) Any other electric or natural gas
methane energy conservation program or any program for the use of renewable energy resources, as approved by the Energy Commission, the commission, or a participating local publicly owned electric utility, as applicable.
SEC. 192.
Section 3369 of the Public Utilities Code is amended to read:3369.
(a) Within 180 days of the effective date of this division, the authority, in consultation with the Energy Commission and the Independent System Operator, shall develop an Energy Resource Investment Plan and submit that plan to the Governor and the Joint Legislative Budget Committee and the chairs of the policy committees with jurisdiction over energy policy in the State of California.(b) The Energy Resource Investment Plan shall take into account California’s anticipated energy service needs for both electricity and natural gas methane
over the next decade. The plan shall address issues regarding adequacy of supply, storage, reliability of service, grid congestion, and environmental quality. In developing the investment plan, the authority shall compare the costs of various energy resources, including a comparison of the costs and benefits of demand reduction strategies with the costs and benefits of additional generation supply. The plan shall acknowledge the potential volatility of fossil fuel prices and the value of resources that avoid that price risk.
(c) The plan shall outline a strategy for cost-effective energy resource investments, using the financing powers provided to the authority by this division. The plan may recommend changes to the specific expenditure authority granted in this division in order to carry out the investment strategy contained in the plan.
(d) The plan shall be
developed with input from interested parties at scheduled public hearings of the authority. The authority should adopt the plan by majority vote of the board at a public meeting. The authority shall update the plan on a regular basis as determined by the authority.
(e) All investments made by the authority under this division shall be consistent with the strategy outlined in the Energy Resource Investment Plan. Nothing in this section shall preclude the authority from exercising its powers prior to before the adoption of the initial Energy Resource Investment Plan.
(f) The authority shall be the agency responsible for ensuring that the investment strategy outlined in the Energy Resource
Investment Plan is implemented. To that end, the authority may, on its own or through a partnership with a participating party, make those investments necessary to ensure that the plan is implemented.
SEC. 193.
Section 4351 of the Public Utilities Code is amended to read:4351.
As used in this chapter:(a) “Gas” means natural or manufactured gas, methane, except propane, used for light, heat, or power. electricity.
(b) “Distribution system” means a system of pipes within a mobilehome park operated by a person or corporation, other than a public utility, which
that is connected to a meter or other measuring device under the control of a privately owned or publicly owned public utility, for purposes of distribution of gas by the operator of a mobilehome park to the tenants of the mobilehome park who are the actual users of the gas furnished through the meter or device to the operator by the public utility.
(c) “Operator” is a mobilehome park owner or operator who maintains and operates a master-metered natural gas
methane distribution system.
(d) “Department” means the Department of Housing and Community Development.
(e) “Local enforcement agency” means the city, county, or city and county which that has assumed the responsibility for the enforcement of Chapter 2 (commencing with Section 18300) of Part 2.1 of Division 13 of the Health and Safety Code.
(f) “Federal law” or “federal pipeline standards” means the federal Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. Sec. 1671 et seq.) and the regulations contained in Parts 190, 191, and 192 of Title 49 of the Code of Federal
Regulations.
SEC. 194.
Section 4358 of the Public Utilities Code is amended to read:4358.
(a) The commission shall establish a uniform billing per space or lot surcharge to be paid by operators with distribution systems subject to this chapter on(b) The commission shall require gas corporations to adjust their rates on an annual basis to recover the surcharge specified in subdivision (a). Mobilehome parks which
that are served by local publicly owned public utilities shall be inspected at the request of the serving utility. However, local publicly owned public utilities which that serve mobilehome parks subject to this chapter shall only be required to adjust their gas rates to recover the surcharge specified in subdivision (a) when a mobilehome park within the utility’s jurisdiction is inspected.
(c) Notwithstanding any other provision of law or local ordinance, rule, regulation, or initiative measure, the operator shall be entitled to recover the surcharge collected pursuant to subdivision (a) from its tenants on a monthly basis. However, the charge to any tenant shall not exceed 30 cents per month for the period from July 1, 1991, until July 1, 1992, and shall not exceed 25 cents per month after that date. If the commission establishes the surcharge at a lesser amount, the operator’s recovery shall not exceed the actual surcharge.
(d) All surcharge fees collected by gas corporations pursuant to this section shall be forwarded to the commission, as required by the commission. All surcharge fees collected pursuant to this section shall be deposited in
into the Public Utilities Commission Utilities Reimbursement Account in the General Fund, which fees shall be used, upon appropriation, for purposes of this chapter.
SEC. 195.
Section 6350 of the Public Utilities Code is amended to read:6350.
There is hereby created a surcharge to be applied toSEC. 196.
Section 6351 of the Public Utilities Code is amended to read:6351.
As used in this chapter:(a) “Municipality” includes counties.
(b) “Energy transporter” means and includes every utility and nonutility owner or operator, or both, of a natural gas methane or electric electrical transmission or distribution system, or both, subject to a franchise agreement executed pursuant
to this division, provided that proprietary gas pipelines whose franchise fees are set forth in Article 2 (commencing with Section 6231) of Chapter 2 shall not be covered by this chapter.
(c) “Transportation customer” means every person, firm, or corporation, other than the State of California or a political subdivision thereof, transporting gas or electricity on an energy transporter’s transmission or distribution system, or both, when the gas or electricity was purchased by the transportation customer from a third party. Transportation customer shall not include one gas utility transporting gas, for end use in its commission designated service area through another gas utility’s service area, nor shall transportation customer include a utility transporting its own gas through its own gas transmission or distribution system, or both, for purposes of generating electricity or for use in its own operations. In addition, “transportation customer”
shall not include a cogeneration or nonutility generation facility when the facility transports electricity through its own electric electrical transmission or distribution system or otherwise delivers electricity in the manner described in Section 218.
(d) “Surcharge” means a municipal surcharge for the use of public lands by a transportation customer as defined in subdivision (c).
SEC. 197.
Section 6352 of the Public Utilities Code is amended to read:6352.
(a) Notwithstanding any other(b) Notwithstanding subdivision (a), the surcharge assessed for gas used to generate electricity by a nonutility facility shall be the same as the surcharge assessed for gas used to generate electricity by the electric electrical utility for that quantity of gas described in Section 454.4. The
surcharge amount for electricity shall not apply to the sale of electricity from a cogeneration or nonutility facility to an entity for resale to a retail customer.
(c) Nothing in this chapter permits a municipality to recover surcharges imposed pursuant to this chapter on the commodity cost of gas or electricity transported for transportation customers in addition to franchise fees calculated on the imputed value of the same quantities of gas or electricity. If a municipality has a franchise agreement with an energy transporter that requires the energy transporter to pay a franchise fee based upon an imputed value for the commodity cost of gas or electricity transported but not sold by the energy transporter, the energy transporter may apply the surcharge imposed by this chapter toward the amount of the franchise fee due under the franchise agreement.
(d) Nothing in this chapter
shall in any way affect the rights of the parties to existing franchise agreements executed pursuant to this division that are in force on the effective date of this chapter.
(e) Notwithstanding subdivision (a), the surcharge shall not apply to corporations transporting natural gas methane pursuant to a “gas transportation only” agreement in effect prior to before January 1, 1986.
(f) Notwithstanding subdivision (a), an energy transporter of gas that is required to obtain a franchise agreement with a
municipality, and that is subject to the jurisdiction of the Federal Energy Regulatory Commission, shall not be required to collect the surcharge imposed by this chapter, but shall be required to negotiate with the municipality under the provisions of this division, franchise fees that recover amounts equivalent to those amounts that would otherwise have been recovered pursuant to this chapter.
SEC. 198.
Section 7673 of the Public Utilities Code is amended to read:7673.
Each railroad corporation(a) Provide a system map of the state to the Office of Emergency Services and to the Public Utilities Commission, showing practical groupings of mileposts on the system and showing mileposts of stations, terminals, junction points, road crossings, and the locations of natural gas methane and liquid
pipelines in railroad rights-of-way.
(b) Annually submit to the Office of Emergency Services a copy of a publication which that identifies emergency handling guidelines for the surface transportation of hazardous materials, except that if the railroad corporation is classified as a class I carrier by the Interstate Commerce Commission pursuant to Subpart A of Part 1201 of Subchapter C of Chapter X of the Code of Federal Regulations, the railroad corporation shall annually submit to the Office of Emergency Services 50 copies of this publication which that the agency
shall make available to the Public Utilities Commission and local administering agencies and to other response agencies. These guidelines shall not be considered comprehensive instructions for the handling of any specific incident.
(c) If there is a train incident resulting in a release or an overturned railcar or an impact which that threatens a release of a hazardous material, provide the emergency response agency with all of the following information:
(1) A list of each car in the train and the order of the cars.
(2) The contents of each car, if loaded, in the train.
(3) Identification of the cars and contents in the train which that are involved in the incident, including, but not limited to, those cars which that have derailed.
(4) Emergency handling procedures for each hazardous material transported in or on the involved cars of the train.
SEC. 199.
Section 7714.5 of the Public Utilities Code is amended to read:7714.5.
(a) In accordance with regulations adopted pursuant to Section 7713, the secretary shall establish a fee(b) The secretary shall, to the extent practicable, identify programs, equipment, and facilities
applicable to specific surface transportation modes, and shall establish fees for each surface transportation mode to cover the costs of the programs, equipment, and facilities applicable to that specific surface transportation mode. Fees to cover the costs of programs, equipment, and facilities applicable to all or several surface transportation modes shall be paid in equal shares by surface transportation modes.
(c) The secretary may authorize payment of fees through contributions in kind of equipment, materials, or services.
(d) For the purposes of the fees authorized by this section, “surface transportation mode” shall not include pipelines subject to the fee assessed pursuant to Section 51019 of the Government Code or any natural gas
methane pipeline.
(e) This section shall become inoperative on December 31, 1995.
SEC. 200.
Section 8340 of the Public Utilities Code is amended to read:8340.
For purposes of this chapter, the following terms have the following meanings:(a) “Baseload generation” means electricity generation from a powerplant that is designed and intended to provide electricity at an annualized plant capacity factor of at least 60 percent.
(b) “Combined-cycle natural gas” methane” with respect to a powerplant means the powerplant employs a combination of one or more gas turbines and steam turbines in which electricity is produced in the steam turbine from otherwise
lost waste heat exiting from one or more of the gas turbines.
(c) “Electric service provider” means an “electric service provider” as defined in Section 218.3, but does not include corporations or persons employing cogeneration technology or producing electricity from other than a conventional power energy source consistent with subdivision (b) of Section 218.
(d) “Greenhouse gases” means those gases listed in Section 38505 of the Health and Safety Code.
(e) “Load-serving entity” means every electrical corporation, electric service provider, or community choice aggregator serving end-use customers in the state.
(f) “Long-term financial commitment” means either a new ownership investment in baseload generation or a new or renewed contract with a term of five or more years, which includes procurement of baseload generation.
(g) “Output-based methodology” means a greenhouse gases emission performance standard that is expressed in pounds of greenhouse gases emitted per megawatthour and factoring in the useful thermal energy employed for purposes other than the generation of electricity.
(h) “Plant capacity factor” means the ratio of the electricity produced during a given time period, measured in kilowatthours, to the electricity the unit could have produced if it had been operated at its rated capacity during that period, expressed in kilowatthours.
(i) “Powerplant”
means a facility for the generation of electricity, and includes one or more generating units at the same location.
(j) “Zero- or low-carbon generating resource” means an electrical generating resource that will generate electricity while producing emissions of greenhouse gases at a rate substantially below the greenhouse gases emission performance standard, as determined by the commission.
SEC. 201.
Section 8341 of the Public Utilities Code is amended to read:8341.
(a)(b) (1) The commission shall not approve a long-term financial commitment by an electrical corporation unless any baseload generation supplied under the long-term financial commitment complies with the greenhouse gases emission performance standard established by the commission pursuant to subdivision (d).
(2) The commission may, in order to enforce this section, review any long-term financial commitment proposed to be entered into by an electric service provider or a community choice aggregator.
(3) The commission shall adopt rules to enforce the requirements of this section, for load-serving entities. The commission shall adopt procedures, for all load-serving entities, to verify the emissions of greenhouse gases from any baseload generation
supplied under a contract subject to the greenhouse gases emission performance standard to ensure compliance with the standard.
(4) In determining whether a long-term financial commitment is for baseload generation, the commission shall consider the design of the powerplant and the intended use of the powerplant, as determined by the commission based upon the electricity purchase contract, any certification received from the Energy Commission, any other permit or certificate necessary for the operation of the powerplant, including a certificate of public convenience and necessity, any procurement approval decision for the load-serving entity, and any other matter the commission determines is relevant under the circumstances.
(5) Costs incurred by an electrical corporation to comply with this section, including those costs incurred for electricity purchase agreements that are
approved by the commission that comply with the greenhouse gases emission performance standard, are to be treated as procurement costs incurred pursuant to an approved procurement plan and the commission shall ensure timely cost recovery of those costs pursuant to paragraph (3) of subdivision (d) of Section 454.5.
(6) A long-term financial commitment entered into through a contract approved by the commission, for electricity generated by a zero- or low-carbon generating resource that is contracted for, on behalf of consumers of this state on a cost-of-service basis, shall be recoverable in rates, in a manner determined by the commission consistent with Section 380. The commission may, after a hearing, approve an increase from one-half to 1 percent in the return on investment by the third party entering into the contract with an electrical corporation with respect to investment in zero- or low-carbon generation resources authorized pursuant to
this subdivision.
(c) (1) The Energy Commission shall adopt regulations for the enforcement of this chapter with respect to a local publicly owned electric utility.
(2) The Energy Commission may, in order to ensure compliance with the greenhouse gases emission performance standard by local publicly owned electric utilities, apply the procedures adopted by the commission to verify the emissions of greenhouse gases from baseload generation pursuant to subdivision (b).
(3) In determining whether a long-term financial commitment is for baseload generation, the Energy Commission shall consider the design of the powerplant and the intended use of the powerplant, as determined by the Energy Commission based upon the electricity purchase contract, any certification received from the Energy Commission,
any other permit for the operation of the powerplant, any procurement approval decision for the load-serving entity, and any other matter the Energy Commission determines is relevant under the circumstances.
(d) (1) On or before February 1, 2007, the commission, through a rulemaking proceeding, and in consultation with the Energy Commission and the State Air Resources Board, shall establish a greenhouse gases emission performance standard for all baseload generation of load-serving entities, at a rate of emissions of greenhouse gases that is no higher than the rate of emissions of greenhouse gases for combined-cycle natural gas
methane baseload generation. Enforcement of the greenhouse gases emission performance standard shall begin immediately upon the establishment of the standard. All combined-cycle natural gas methane powerplants that are in operation, or that have an Energy Commission final permit decision to operate as of June 30, 2007, shall be deemed to be in compliance with the greenhouse gases emission performance standard.
(2) In determining the rate of emissions of greenhouse gases for baseload generation, the commission shall include the net emissions resulting from the production of electricity by the baseload generation.
(3) The commission shall establish an
output-based methodology to ensure that the calculation of emissions of greenhouse gases for cogeneration recognizes the total usable energy output of the process, and includes all greenhouse gases emitted by the facility in the production of both electrical and thermal energy.
(4) In calculating the emissions of greenhouse gases by facilities generating electricity from biomass, biogas, or landfill gas energy, the commission shall consider net emissions from the process of growing, processing, and generating the electricity from the fuel source.
(5) Carbon dioxide that is injected in geological formations, so as to prevent releases into the atmosphere, in compliance with applicable laws and regulations shall not be counted as emissions of the powerplant in determining compliance with the greenhouse gases emissions performance standard.
(6) In adopting and implementing the greenhouse gases emission performance standard, the commission, in consultation with the Independent System Operator shall consider the effects of the standard on system reliability and overall costs to electricity customers.
(7) In developing and implementing the greenhouse gases emission performance standard, the commission shall address long-term purchases of electricity from unspecified sources in a manner consistent with this chapter.
(8) In developing and implementing the greenhouse gases emission performance standard, the commission shall consider and act in a manner consistent with any rules adopted pursuant to Section 824a-3 of Title 16 of the United States Code.
(9) An electrical corporation that provides
electric service to 75,000 or fewer retail end-use customers in California may file with the commission a proposal for alternative compliance with this section, which the commission may accept upon a showing by the electrical corporation of both of the following:
(A) A majority of the electrical corporation’s retail end-use customers for electric service are located outside of California.
(B) The emissions of greenhouse gases to generate electricity for the retail end-use customers of the electrical corporation are subject to a review by the utility regulatory commission of at least one other state in which the electrical corporation provides regulated retail electric service.
(e) (1) On or before June 30, 2007, the Energy Commission, at a duly noticed public hearing and in consultation with the
commission and the State Air Resources Board, shall establish a greenhouse gases emission performance standard for all baseload generation of local publicly owned electric utilities at a rate of emissions of greenhouse gases that is no higher than the rate of emissions of greenhouse gases for combined-cycle natural gas
methane baseload generation. The greenhouse gases emission performance standard established by the Energy Commission for local publicly owned electric utilities shall be consistent with the standard adopted by the commission for load-serving entities. Enforcement of the greenhouse gases emission performance standard shall begin immediately upon the establishment of the standard. All combined-cycle natural gas methane powerplants that are in operation, or that have an Energy Commission final permit decision to operate as of June 30, 2007, shall be deemed to be in compliance with the greenhouse gases emission performance standard.
(2) The greenhouse gases emission performance standard shall be adopted by regulation
pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(3) In determining the rate of emissions of greenhouse gases for baseload generation, the Energy Commission shall include the net emissions resulting from the production of electricity by the baseload generation.
(4) The Energy Commission shall establish an output-based methodology to ensure that the calculation of emissions of greenhouse gases for cogeneration recognizes the total usable energy output of the process, and includes all greenhouse gases emitted by the facility in the production of both electrical and thermal energy.
(5) In calculating the emissions of greenhouse gases by facilities generating electricity from biomass, biogas, or landfill gas energy, the
Energy Commission shall consider net emissions from the process of growing, processing, and generating the electricity from the fuel source.
(6) Carbon dioxide that is captured from the emissions of a powerplant and that is permanently disposed of in geological formations in compliance with applicable laws and regulations, shall not be counted as emissions from the powerplant.
(7) In adopting and implementing the greenhouse gases emission performance standard, the Energy Commission, in consultation with the Independent System Operator, shall consider the effects of the standard on system reliability and overall costs to electricity customers.
(8) In developing and implementing the greenhouse gases emission performance standard, the Energy Commission shall address long-term purchases of electricity from unspecified
sources in a manner consistent with this chapter.
(9) In developing and implementing the greenhouse gases emission performance standard, the Energy Commission shall consider and act in a manner consistent with any rules adopted pursuant to Section 824a-3 of Title 16 of the United States Code.
(f) The Energy Commission, in a duly noticed public hearing and in consultation with the commission and the State Air Resources Board, shall reevaluate and continue, modify, or replace the greenhouse gases emission performance standard when an enforceable greenhouse gases emissions limit is established and in operation, that is applicable to local publicly owned electric utilities.
(g) The commission, through a rulemaking proceeding and in consultation with the Energy Commission and the State Air Resources Board, shall
reevaluate and continue, modify, or replace the greenhouse gases emission performance standard when an enforceable greenhouse gases emissions limit is established and in operation, that is applicable to load-serving entities.
SEC. 202.
Section 8371 of the Public Utilities Code is amended to read:8371.
The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.
(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.
(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.
(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas methane generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas methane generation that is a distributed energy resource.
(e) Form a
working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.
(f) Develop a standard for direct current metering in the commission’s Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.
SEC. 203.
Section 8372 of the Public Utilities Code is amended to read:8372.
(a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utility’s applicable regulatory requirements.
SEC. 204.
Section 8380 of the Public Utilities Code is amended to read:8380.
(a) For purposes of this section, “electrical or gas consumption data” means data about a customer’s electrical or(b) (1) An electrical corporation or gas corporation shall not share, disclose, or otherwise make accessible to any third party a customer’s electrical or gas consumption
data, except as provided in subdivision (f) or upon the consent of the customer. Customer consent may be verified through an electronic signature authorization process pursuant to the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code).
(2) An electrical corporation or gas corporation shall not sell a customer’s electrical or gas consumption data or any other personally identifiable information for any purpose.
(3) An electrical corporation or gas corporation or its contractors shall not provide an incentive or discount to the customer for accessing the customer’s electrical or gas consumption data without the prior consent of the customer.
(4) An electrical or gas corporation that utilizes
uses an advanced metering infrastructure that allows a customer to access the customer’s electrical and gas consumption data shall ensure that the customer has an option to access that data without being required to agree to the sharing of the customer’s personally identifiable information, including electrical or gas consumption data, with a third party.
(c) If an electrical corporation or gas corporation contracts with a third party for a service that allows a customer to monitor the customer’s electricity or gas usage, and that third party uses the data for a secondary commercial purpose, the contract between the electrical corporation or gas corporation and the third party shall provide that the third party prominently discloses that secondary commercial purpose to the customer and secures the customer’s consent to the use of the customer’s data for that secondary commercial purpose prior to
before the use of the data.
(d) An electrical corporation or gas corporation shall use reasonable security procedures and practices to protect a customer’s unencrypted electrical or gas consumption data from unauthorized access, destruction, use, modification, or disclosure.
(e) An electrical corporation or gas corporation shall not share, disclose, or otherwise make accessible to any immigration authority, as defined in Section 7284.4 of the Government Code, a customer’s electrical or gas consumption data without a court-ordered subpoena or judicial warrant.
(f) (1) This section does not preclude an electrical corporation or gas corporation from using customer aggregate electrical or gas consumption data for analysis, reporting, or program management if
all information has been removed regarding the individual identity of a customer.
(2) This section does not preclude an electrical corporation or gas corporation from disclosing a customer’s electrical or gas consumption data to a third party for system, grid, or operational needs, or the implementation of demand response, energy management, or energy efficiency programs, provided that, for contracts entered into after January 1, 2011, the utility has required by contract that the third party implement and maintain reasonable security procedures and practices appropriate to the nature of the information to protect the personal information from unauthorized access, destruction, use, modification, or disclosure, and prohibits the use of the data for a secondary commercial purpose not related to the primary purpose of the contract without the customer’s prior consent to that use.
(3) Except as provided in subdivision (e), this section does not preclude an electrical corporation or gas corporation from disclosing electrical or gas consumption data as required or permitted under state or federal law or by an order of the commission.
(g) If a customer chooses to disclose the customer’s electrical or gas consumption data to a third party that is unaffiliated with, and has no other business relationship with, the electrical or gas corporation, the electrical or gas corporation is not responsible for the security of that data, or its use or misuse.
SEC. 205.
Section 9616 of the Public Utilities Code is amended to read:9616.
(a) To the extent that doing so is cost effective, a local publicly owned electric utility providing(b) For purposes of this section, “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.
SEC. 206.
Section 9618 of the Public Utilities Code is amended to read:9618.
(a) (1) Except as provided in paragraph (2), a local publicly owned electric utility that provides electric service to 250,000 or more customers within the Los Angeles Basin shall make publicly available, upon request of any person, electrical grid data necessary or useful to enable distributed energy resource providers to target solutions that support reliability in the area where electrical reliability has been impacted as a result of reductions in gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon(2) A local publicly owned electric utility shall not make data available pursuant to paragraph (1) that is prohibited from being disclosed pursuant to state or federal law.
(3) The data made available pursuant to this subdivision shall be available pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), commencing within 60 days of the effective date of this section.
(b) For purposes of this section, “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.
SEC. 207.
Section 99500 of the Public Utilities Code is amended to read:99500.
(a) Except as specified in subdivision (b), in addition to taxes imposed pursuant to Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001) of Division 2 of the Revenue and Taxation Code, a tax of one cent ($0.01) per gallon (or, in the case of compressed(b) No A tax shall not be imposed under this chapter on fuel used in propelling an aircraft or a vessel.
SEC. 208.
Section 6358.1 of the Revenue and Taxation Code is amended to read:6358.1.
(a) There are exempted from taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of either of the following:(1) Organic products grown expressly for fuel purposes.
(2) Waste byproducts from agricultural or forest products operations, municipal refuse, or manufacturing which that are used in an industrial facility as a fuel source in lieu of the use of either oil, natural gas,
methane, or coal.
(b) In addition to subdivision (a), the exemption under this section shall include the use of still gas produced in the refining process from purchased crude oil.
SEC. 209.
Section 7284.3 of the Revenue and Taxation Code is amended to read:7284.3.
(a) For the purposes of this section:(1) “Local jurisdiction” means any city, county, city and county, including any chartered city, county, or city and county, district, or public or municipal corporation.
(2) “Public transit operator” means a local or regional transit agency or a joint powers agency operating bus transportation service as described pursuant to Article 1 (commencing with Section 99200) of Chapter 4 of Part 11 of Division 10 of the Public Utilities Code.
(b) There is exempt from any utility user tax, imposed by any local jurisdiction, a local agency’s or public transit operator’s consumption of compressed natural gas
methane dispensed by a gas compressor, within a local jurisdiction, that is separately metered and is dedicated to providing compressed natural gas methane as a motor vehicle fuel for use by the local agency or public transit operator.
(c) There is exempt from any utility user tax on the consumption of electricity, imposed by any local jurisdiction, a local agency’s or public transit operator’s consumption of electricity used to charge electric bus propulsion batteries, within a local jurisdiction, that is separately metered and is dedicated to providing electricity as a motor vehicle fuel for use by an electric public transit bus.
SEC. 210.
Section 7326 of the Revenue and Taxation Code is amended to read:7326.
“Motor vehicle fuel” means gasoline and aviation gasoline. It does not include jet fuel, diesel fuel, kerosene, liquefied petroleum gas,SEC. 211.
Section 7335 of the Revenue and Taxation Code is amended to read:7335.
“Refinery” means a facility used to produce motor vehicle fuel from crude oil, unfinished oils,SEC. 212.
Section 8613 of the Revenue and Taxation Code is amended to read:8613.
SEC. 213.
Section 8651.6 of the Revenue and Taxation Code is amended to read:8651.6.
(a) (1) Notwithstanding(2) Notwithstanding the provisions of Sections 8651 and 8651.5, on or after January 1, 2015, an excise tax imposed upon natural gas methane shall be imposed as follows:
(A) The rate of eight and eighty-seven hundredths cents ($0.0887) for each 126.67 cubic feet, or 5.66 pounds, of compressed natural gas methane used, measured at standard pressure and temperature.
(B) The rate of ten and seventeen hundredth cents ($0.1017) for each 6.06 pounds of liquid natural gas
methane used.
(b) (1) All references in this code to Section 8651 shall, with respect to the rate imposed upon natural gas methane on or after January 1, 1971, also refer to this section.
(2) (A) Neither the tax imposed by this section nor the tax imposed by Section 8651 shall apply to the use of compressed natural gas methane or liquid natural gas
methane used in a vehicle during any period of time for which the owner or operator of the vehicle has paid the annual flat rate fuel tax as provided in Section 8651.7.
(B) To the extent that an owner or operator has provided written representation to a fuel seller that the owner or operator has prepaid the annual flat rate fuel tax as provided in Section 8651.7, the owner or operator shall be solely responsible for the taxes due under this part and the fuel seller shall not be liable for collecting and remitting those taxes.
SEC. 214.
Section 8651.7 of the Revenue and Taxation Code is amended to read:8651.7.
(a) The owner or operator, except an interstate user, of a vehicle propelled by a system using liquefied petroleum gas, dimethyl ether-liquefied petroleum gas fuel blend, liquidUnladen weight | Fee |
All passenger cars and other vehicles 4,000 lbs. or less
........................
| $ 36 |
More than 4,000 lbs. but less than 8,001 lbs.
........................
| 72 |
More than 8,000 lbs. but less than 12,001 lbs.
........................
| 120 |
12,001 lbs. or more
........................
| 168 |
(b) The annual flat rate fuel tax described in subdivision (a) shall be an annual tax. The annual period shall be that
period from the end of the month in which the tax was paid to the end of the month prior in the following calendar year. When an owner or operator elects to pay the annual flat rate fuel tax on more than one vehicle, the owner or operator may request that the department prorate the tax due on a vehicle added during the annual period, so that all vehicles have the same annual period. In the year a vehicle is added, the annual flat rate fuel tax for that vehicle shall be calculated by dividing the fee set forth in subdivision (a) by 12 and multiplying the resulting amount by the number of months remaining before the beginning of the next annual period.
(c) The department shall adopt an identification procedure for vehicles with respect to which the annual flat rate tax described in subdivision (a) of this section has been paid.
(d) Subdivision (a) shall not apply to dimethyl
ether-liquefied petroleum gas fuel blend or dimethyl ether until July 1, 2021.
SEC. 215.
Section 9258 of the Revenue and Taxation Code is amended to read:9258.
On or after January 1, 1976, any person who equips a vehicle with a system using liquefied petroleum gas, compressedSEC. 216.
Section 9501 of the Revenue and Taxation Code is amended to read:9501.
(a) Except as specified in subdivision (c), in addition to taxes imposed pursuant to Chapter 5 (commencing with Section 99500) of Part 11 of Division 10 of the Public Utilities Code, Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001) of this division, on motor vehicle fuel, a tax may be imposed by a county on a countywide basis in accordance with this part.(b) The tax shall be imposed in increments of one cent ($0.01) per gallon or, in the case of compressed natural gas, methane,
one cent ($0.01) per 100 cubic feet as measured at standard pressure and temperature.
(c) No A tax shall not be imposed under this part on fuel used in propelling an aircraft or a vessel.
SEC. 217.
Section 17131.10 of the Revenue and Taxation Code is amended to read:17131.10.
Notwithstanding any other law, for purposes of this part, theSEC. 218.
Section 18154 of the Revenue and Taxation Code is amended to read:18154.
Notwithstanding any other law, for purposes of this part, theSEC. 219.
Section 25128 of the Revenue and Taxation Code is amended to read:25128.
(a) Notwithstanding Section 38006, for taxable years beginning before January 1, 2013, all business income shall be apportioned to this state by multiplying the business income by a fraction, the numerator of which is the property factor plus the payroll factor plus twice the sales factor, and the denominator of which is four, except as provided in subdivision (b) or (c).(b) If an apportioning trade or business derives more than 50 percent of its “gross business receipts” from conducting one or more qualified business activities, all business income of the apportioning trade or business shall be apportioned to this state by multiplying business income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the
denominator of which is three.
(c) For purposes of this section, a “qualified business activity” means the following:
(1) An agricultural business activity.
(2) An extractive business activity.
(3) A savings and loan activity.
(4) A banking or financial business activity.
(d) For purposes of this section:
(1) “Gross business receipts” means gross receipts described in subdivision (e) or (f) of Section 25120 (other than gross receipts from sales or other transactions within an apportioning trade or business between members of a group of corporations whose income
and apportionment factors are required to be included in a combined report under Section 25101, limited, if applicable, by Section 25110), whether or not the receipts are excluded from the sales factor by operation of Section 25137.
(2) “Agricultural business activity” means activities relating to any stock, dairy, poultry, fruit, furbearing animal, or truck farm, plantation, ranch, nursery, or range. “Agricultural business activity” also includes activities relating to cultivating the soil or raising or harvesting any agricultural or horticultural commodity, including, but not limited to, the raising, shearing, feeding, caring for, training, or management of animals on a farm as well as the handling, drying, packing, grading, or storing on a farm any agricultural or horticultural commodity in its unmanufactured state, but only if the owner, tenant, or operator of the farm regularly produces more than one-half of the commodity so treated.
(3) “Extractive business activity” means activities relating to the production, refining, or processing of oil, natural gas, methane, or mineral ore.
(4) “Savings and loan activity” means any activities performed by savings and loan associations or savings banks which that have been chartered by federal or state law.
(5) “Banking or financial business activity” means activities attributable to dealings in money or moneyed capital in
substantial competition with the business of national banks.
(6) “Apportioning trade or business” means a distinct trade or business whose business income is required to be apportioned under Sections 25101 and 25120, limited, if applicable, by Section 25110, using the same denominator for each of the applicable payroll, property, and sales factors.
(7) Paragraph (4) of subdivision (c) shall apply only if the Franchise Tax Board adopts the Proposed Multistate Tax Commission Formula for the Uniform Apportionment of Net Income from Financial Institutions, or its substantial equivalent, and shall become operative upon the same operative date as the adopted formula.
(8) In any case where the income and apportionment factors of two or more savings associations or corporations are required to be included in a combined
report under Section 25101, limited, if applicable, by Section 25110, both of the following shall apply:
(A) The application of the more than 50 percent test of subdivision (b) shall be made with respect to the “gross business receipts” of the entire apportioning trade or business of the group.
(B) The entire business income of the group shall be apportioned in accordance with either subdivision (a) or (b), or Section 25128.7, as applicable.
SEC. 220.
Section 60004 of the Revenue and Taxation Code is amended to read:60004.
“Refinery” means a facility used to produce diesel fuel from crude oil, unfinished oils,SEC. 221.
Section 60022 of the Revenue and Taxation Code is amended to read:60022.
(a) “Diesel fuel” means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the engine of a diesel-powered highway vehicle. However,
(b) However, a liquid does not
possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the engine of a diesel-powered highway vehicle.
“Diesel
(c) “Diesel fuel” does not include kerosene, gasoline, liquified petroleum gas, natural gas
methane in liquid or gaseous form, or alcohol.
(b)This section shall become operative on January 1, 2007.
SEC. 222.
Section 2580 of the Streets and Highways Code is amended to read:2580.
(a) The Department of Transportation may make loans to other state agencies for the purpose of purchasing vanpool vehicles, as defined by subdivision (b) of Section 2570, for state employee vanpooling. The purchased vehicles, to the extent practicable, shall be either “low-emission vehicles,” as defined by Section 39037.05 of the Health and Safety Code, or “alternative fuel vehicles,”(1) An original equipment manufactured vehicle capable of operating on a nonpetroleum-based alternative fuel such as
electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, or natural gas
methane
and that has demonstrated to the satisfaction of the State Air Resources Board the ability to meet applicable California emission standards.
(2) A vehicle that has been converted to use a nonpetroleum-based alternative fuel such as electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, or natural gas methane through the installation of an alternative fuel retrofit system that has been certified by the State Air Resources Board.
(b) The department shall establish criteria and adopt guidelines for making the loans and for the purchase of vanpool vehicles, including, but not limited to, requirements on the type of vehicles authorized for purchase, areas within the state
eligible for the vehicles’ operation, types of routes for the vehicles’ operation, and agencies which that are authorized to participate in the program. State agencies may submit loan applications to the department for approval. State agencies receiving loans and purchasing vehicles pursuant to this section shall be responsible for all of the following:
(1) Operational responsibilities for the vehicles, including, but not limited to, vehicle maintenance and repair.
(2) Administration of departmental rideshare programs, including, but not limited to, ridership development and retention.
(3) Compliance with applicable state and
federal laws and regulations, including driver and vehicle certification, licenses, and vehicle registration.
(4) Retaining title to vanpool vehicles purchased.
(5) Repayment of the loan for the purchase of the vanpool vehicle.
(c) An agency which that receives a loan for the purchase of a vanpool vehicle pursuant to this section shall charge each employee participating in the vanpooling program a monthly fee in an amount determined by the agency. Proceeds of the fees shall be sufficient to fully reimburse the agency for repayment of the loan and for the operational cost of the vanpool vehicle. The operational cost includes, at
a minimum, fuel, maintenance, and repairs. The agency shall maintain records to demonstrate that the vanpooling program which that it operates is self-supporting.
(d) Funds for loans for purposes of this section shall be provided in the annual Budget Act.
SEC. 223.
Section 2402.6 of the Vehicle Code is amended to read:2402.6.
(a) The commissioner may adopt and enforce regulations and standards with respect to fuel containers and fuel systems on vehicles using compressed or liquefied(b) The commissioner may also adopt and enforce regulations and standards with respect to fuel containers and fuel systems on vehicles using compressed or liquefied hydrogen gas or liquid fuels that generate hydrogen gas.
(c) All motor vehicles with compressed natural gas methane fuel systems used for propulsion shall comply either with the regulations adopted pursuant to subdivision (a) or with National Fire Protection Administration Standard NFPA 52, “Compressed Natural Gas (CNG)
Vehicular Fuel Systems” in effect at the time of manufacture, until standards for those fuel systems have been incorporated into the Federal Motor Vehicle Safety Standards by the United States Department of Transportation. Whenever those Federal Motor Vehicle Safety Standards include requirements for gaseous fuel systems, all motor vehicles with gaseous fuel systems which that are manufactured after the effective date of those requirements shall comply with those requirements.
(d) It is an infraction for any person to operate any motor vehicle in violation of any provision of a regulation adopted pursuant to this section.
(e) The operator of every facility for filling portable liquefied natural gas methane
or liquefied petroleum gas containers having a capacity of four pounds or more but not more than 200 pounds of gas shall post in a conspicuous place the regulations applicable to that filling procedure.
SEC. 224.
Section 27602 of the Vehicle Code is amended to read:27602.
(a) A person shall not drive a motor vehicle if a television receiver, a video monitor, or a television or video screen, or any other similar means of visually displaying a television broadcast or video signal that produces entertainment or business applications, is operating and is located in the motor vehicle at a point forward of the back of the driver’s seat, or is operating and the monitor, screen, or display is visible to the driver while driving the motor vehicle.(b) Subdivision (a) does not apply to the following equipment when installed in a vehicle:
(1) A vehicle information display.
(2) A global positioning display.
(3) A mapping display.
(4) A visual display used to enhance or supplement the driver’s view forward, behind, or to the sides of a motor vehicle for the purpose of maneuvering the vehicle.
(5) A television receiver, video monitor, television or video screen, or any other similar means of visually displaying a television broadcast or video signal, if that equipment satisfies one of the following requirements:
(A) The equipment has an interlock device that, when the motor vehicle is driven, disables the equipment for all uses except as a visual display as described in paragraphs (1) to (4), inclusive.
(B) The equipment is designed, operated, and configured in a manner that prevents the driver of
the motor vehicle from viewing the television broadcast or video signal while operating the vehicle in a safe and reasonable manner.
(6) A mobile digital terminal that is fitted with an opaque covering that does not allow the driver to view any part of the display while driving, even though the terminal may be operating, installed in a vehicle that is owned or operated by any of the following:
(A) An electrical corporation, as defined in Section 218 of the Public Utilities Code.
(B) A gas corporation, as defined in Section 222 of the Public Utilities Code.
(C) A sewer system corporation, as defined in Section 230.6 of the Public Utilities Code.
(D) A telephone corporation, as defined in
Section 234 of the Public Utilities Code.
(E) A water corporation, as defined in Section 241 of the Public Utilities Code.
(F) A local publicly owned electric utility, as defined in Section 224.3 of the Public Utilities Code.
(G) A city, joint powers agency, or special district, if that local entity uses the vehicle solely in the provision of sewer service, gas service, water service, or wastewater service.
(c) Subdivision (a) does not apply to a mobile digital terminal installed in an authorized emergency vehicle or to a motor vehicle providing emergency road service or roadside assistance.
(d) Subdivision (a) does not apply to a mobile digital terminal installed in a vehicle when the
vehicle is deployed in an emergency to respond to an interruption or impending interruption of electrical, natural gas, methane, telephone, sewer, water, or wastewater service, and the vehicle is owned or operated by any of the following:
(1) An electrical corporation, as defined in Section 218 of the Public Utilities Code.
(2) A gas corporation, as defined in Section 222 of the Public Utilities Code.
(3) A sewer system corporation, as defined in Section 230.6 of the Public Utilities Code.
(4) A telephone corporation, as defined in Section 234 of the Public
Utilities Code.
(5) A water corporation, as defined in Section 241 of the Public Utilities Code.
(6) A local publicly owned electric utility, as defined in Section 224.3 of the Public Utilities Code.
(7) A city, joint powers agency, or special district, if that local entity uses the vehicle solely in the provision of sewer service, gas service, water service, or wastewater service.
SEC. 225.
Section 27909 of the Vehicle Code is amended to read:27909.
Any vehicleSEC. 226.
Section 24252.1 of the Water Code is amended to read:24252.1.
A district may enter into any forward contract, or futures contract, or put, call, or swap agreement, or similar procurement method for electricity,SEC. 227.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
