Bill Text: CA SB343 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Energy: efficiency.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2011-07-12 - Read second time and amended. Re-referred to Com. on NAT. RES. [SB343 Detail]

Download: California-2011-SB343-Amended.html

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BILL NUMBER: SB 343	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 30, 2011
	AMENDED IN ASSEMBLY  JUNE 22, 2011
	AMENDED IN SENATE  MAY 31, 2011
	AMENDED IN SENATE  MAY 10, 2011
	AMENDED IN SENATE  APRIL 25, 2011

INTRODUCED BY   Senator De León

                        FEBRUARY 15, 2011

    An act to add Chapter 4 (commencing with Section 26043)
to, and to repeal Article 4 (commencing with Section 26043.50) of
Chapter 4 of, Division 16 of the Public Resources Code, and to amend
Section 399.8 of the Public Utilities Code, relating to energy, and
making an appropriation therefor.   An act to add
Section 381.3 to the Public Utilities Code, relating to energy. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 343, as amended, De León. Energy: efficiency. 
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations and gas corporations, as defined. Existing law requires
the PUC to investigate the ability of electrical corporation and gas
corporations to provide energy efficiency financing options to their
customers to implement a comprehensive program developed by the State
Energy Resources Conservation and Development Commission (Energy
Commission) and requires the PUC to include an assessment of each
electrical corporation's and each gas corporation's implementation of
that program in a specified triennial report required under existing
law. Pursuant to this requirement, the PUC has opened Rulemaking
09-11-014.  
   This bill would require the PUC, in Rulemaking 09-11-014, in
consultation with the Energy Commission, the Treasurer, and the
California Alternative Energy and Advanced Transportation Financing
Authority, to determine appropriate energy efficiency financing
measures, programs, and funding sources for the residential,
commercial, and public building sectors in order to achieve the
statewide energy efficiency goals for those sectors identified in the
California Energy Efficiency Strategic Plan adopted by the PUC.
 
   (1) The California Alternative Energy and Advanced Transportation
Financing Act requires the California Alternative Energy and Advanced
Transportation Financing Authority, in consultation with the State
Energy Resources Conservation and Development Commission, to
establish criteria for selecting projects related to renewable energy
and alternative transportation technologies that would receive
financial assistance, including loans, loan loss reserves, interest
rate reductions, insurance, guarantees, and other credit enhancement
or liquidity facilities from the authority.  
   This bill would require the authority to establish a Commercial
Energy Efficiency Retrofit Revolving Loan Program for the purposes of
providing loans for energy efficiency retrofit for commercial
properties. The bill would require the authority to accept and
evaluate applications for energy retrofits for commercial properties
to accomplish specified goals. The bill would establish in the State
Treasury the California Alternative Energy and Advanced
Transportation Financing Authority Energy Efficiency Retrofit Bank
Fund (bank fund). Moneys from the bank fund would be available for
expenditure for the general administration of the loan program upon
appropriation of the Legislature. The bill would continuously
appropriate the moneys in the bank fund to the authority for all
other purposes of the loan program, thereby resulting in an
appropriation.  
   This bill would require the Legislative Analyst's Office, by an
unspecified date, to submit a report to the Joint Legislative Budget
Committee on the effectiveness of the loan program. The bill would
repeal this requirement on an unspecified date.  
   (2) Existing law, the Public Utilities Act, requires the Public
Utilities Commission to require an electrical corporation, until
January 1, 2012, to identify a separate electrical rate component,
commonly referred to as the "public goods charge," to fund energy
efficiency, renewable energy, and research, development, and
demonstration programs that enhance system reliability and provide
instate benefits. Electrical corporations are required to collect and
allocate these funds in accordance with prescribed requirements.
Under existing law, a violation of the Public Utilities Act is a
crime.  
   This bill would require the commission to require each electrical
corporation to remit an unspecified amount of that money collected to
the California Alternative Energy and Advanced Transportation
Financing Authority for deposit in the bank fund.  
   Because this bill would add a requirement to the Public Utilities
Act, the violation of which would be a crime, it would create a
state-mandated local program.  
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote:  2/3   majority  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program:  yes   no  .


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

   SECTION 1.    Section 381.3 is added to the 
 Public Utilities Code   , to read:  
   381.3.  In pending Rulemaking 09-11-014, the commission, in
consultation with the Energy Commission, the Treasurer, and the
California Alternative Energy and Advanced Transportation Financing
Authority, shall determine appropriate energy efficiency financing
measures, programs, and funding sources for the residential,
commercial, and public building sectors in order to achieve the
statewide energy efficiency goals for those sectors identified in the
California Energy Efficiency Strategic Plan, as updated by the
commission in January 2011.  
  SECTION 1.    Chapter 4 (commencing with Section
26043) is added to Division 16 of the Public Resources Code, to read:

      CHAPTER 4.  COMMERCIAL ENERGY EFFICIENCY RETROFIT REVOLVING
LOAN PROGRAM



      Article 1.  General Provisions


   26043.  The purpose of this chapter is to promote and accelerate
the implementation of energy efficiency retrofits of commercial
properties in California. Commercial properties represent a large
potential for energy savings, greenhouse gas emissions reductions,
and creation of jobs in the state. In furtherance of these
objectives, the authority may approve projects for financial
assistance in the form of loans on terms established pursuant to this
chapter.
   26043.1.  To the extent not inconsistent with Section 26003, the
following definitions shall apply for the purposes of this chapter:
   (a) "Bank fund" means the California Alternative Energy and
Advanced Transportation Financing Authority Energy Efficiency
Retrofit Bank Fund established pursuant to Section 26043.10.
   (b) "Borrower" means a person or entity engaged in business
operations in the state.
   (c) "Commercial property" means improvement to real property used
for business operations in the state.
   (d) "Energy retrofit" means the installation, utilization,
implementation, or deployment of equipment on or in existing
commercial properties or the making of modifications to existing
commercial properties with the purpose of reducing energy use or
increasing the efficiency of the use of energy within the commercial
property.
   26043.2.  The authority shall make every effort to expedite the
operation of this chapter and shall adopt emergency regulations for
the purposes of implementing the chapter in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. For the purposes of that chapter, including
Section 11349.6 of the Government Code, the adoption of the
regulations shall be considered by the Office of Administrative Law
to be necessary for the immediate preservation of the public peace,
health and safety, and general welfare.
   26043.3.  The authority shall accept applications from borrowers
for financing of energy retrofits of commercial properties. The
applications shall be considered and evaluated based upon the extent
to which the proposed energy retrofits will accomplish the following:

   (a) Produce energy savings.
   (b) Involve equipment manufactured or assembled in California.
   (c) Create new jobs in California.
   (d) Result in a reduction in greenhouse gas emissions, a reduction
in air or water pollution, an increase in energy efficiency, or a
reduction in energy consumption, as compared to existing conditions
and beyond what is required by federal or state law or regulations.
   (e) Leverage other private or public funds.
   (f) Other factors the authority deems appropriate in advancing the
purposes of this chapter.
   26043.4.  The authority shall, by regulation, establish program
priorities, an application process, and terms and conditions for
loans made pursuant to this chapter.

      Article 2.  Energy Efficiency Retrofit Bank Fund


   26043.10.  (a) There is hereby established in the State Treasury
the California Alternative Energy and Advanced Transportation
Financing Authority Energy Efficiency Retrofit Bank Fund for the
purposes of implementing the objectives and provisions of this
chapter. The authority may establish accounts within the bank fund
from time to time as the authority deems appropriate.
   (b) Notwithstanding Section 13340 of the Government Code and
except as provided in subdivision (c), moneys in the bank fund are
continuously appropriated to the authority without regard to fiscal
year for the implementation of this chapter.
   (c) (1) Moneys in the bank fund shall be available for expenditure
for general administration of the program implementing this chapter
only upon appropriation by the Legislature.
   (2) This subdivision does not limit the authority to expend moneys
in the bank fund that are directly related to servicing of approved
debts.
   (d) The bank fund shall be organized as a public enterprise fund.
   (e) The executive director may, if appropriate, transfer funds
between accounts established, from time to time, pursuant to
subdivision (a) to accomplish the objective of this chapter.

      Article 3.  Powers and Authorities


   26043.11.  (a) The authority may pledge any or all of the moneys
in the bank fund as security for payment of the principal of, and
interest on, any particular issuance of bonds issued pursuant to this
division for the purposes of this chapter. The authority may use any
or all of the moneys in the bank fund, including the grant account,
to retain or purchase for retention or sale, subordinated bonds
issued by the authority for the purposes of this chapter, by a
special purpose trust, or by a sponsor pursuant to this chapter. For
these purposes, or as necessary or convenient to the accomplishment
of any other purpose of the authority, the authority may divide the
bank fund into separate accounts or subaccounts. All moneys accruing
to the authority pursuant to this chapter from any sources shall be
deposited in the bank fund.
   (b) Subject to priorities that may be created by the pledge of
particular moneys in the bank fund to secure any issuance of revenue
bonds of the authority for the purposes of this chapter, a special
purpose trust, or a sponsor, and subject further to reasonable costs
that may be incurred by the authority in administering the program
authorized by this chapter, all moneys in the bank fund derived from
any source, shall be held in trust for the security and payment of
revenue bonds of the authority, a special purpose trust, or a sponsor
and shall not be used or pledged for any other purpose so long as
the revenue bonds are outstanding and unpaid.
   (c) Pursuant to any agreements with the holders of revenue bonds
pledging any particular assets, revenues, or moneys, the authority
may create separate accounts or subaccounts in the bank fund to
manage these assets, revenues, or moneys in the manner set forth in
the agreements.
   (d) The authority may, from time to time, direct the Treasurer to
invest moneys in the bank fund that are not required for its current
needs, including proceeds from the sale of any bonds, in any eligible
securities specified in Section 16430 of the Government Code as the
authority shall designate. The authority may direct the Treasurer to
deposit moneys in interest-bearing accounts in any bank in this state
or in any savings and loan association in this state. The authority
may alternatively require the transfer of moneys in the bank fund to
the Surplus Money Investment Fund for investment pursuant to Article
4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division
4 of Title 2 of the Government Code. Notwithstanding Section 16305.7
of the Government Code, all interest or other increment resulting
from the investment or deposit of moneys from the bank fund shall be
deposited in the bank fund. Moneys in the bank fund shall not be
subject to transfer to any other funds pursuant to Part 2 (commencing
with Section 16300) of Division 4 of Title 2 of the Government Code,
except to the Surplus Money Investment Fund.
   (e) Subject to any agreement with holders of particular bonds, and
to the extent permitted by law, the authority may also invest moneys
of the bank fund, including, but not limited to, proceeds of any of
its bonds or refunding bonds, in obligations of financial
institutions as are permitted by resolution. The authority may
alternatively require the transfer of moneys in the bank fund to the
Surplus Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4
of Title 2 of the Government Code.
   (f) Subject to any agreement with the holders of particular bonds,
all interest or other increment resulting from the investment or
deposit shall be deposited in the bank fund, notwithstanding Section
16305.7 of the Government Code. Moneys in the bank fund shall not be
subject to transfer to any other fund pursuant to Part 2 (commencing
with Section 16300) of Division 4 of Title 2 of the Government Code
except to the Surplus Money Investment Fund.
   (g) The authority shall cause all moneys in the bank fund that are
in excess of current requirements to be invested and reinvested,
from time to time.
   26043.12.  (a) The authority may administer and distribute among
the authority's accounts and subaccounts, at its discretion, any
moneys made available to the bank fund from the federal government, a
public agency, or any other source for carrying out the purposes of
this chapter.
   (b) The assets of the bank fund shall be available for the payment
of salaries and other expenses charged against the bank fund in
accordance with this chapter.
   26043.13.  All expenses incurred in carrying out the purposes of
this chapter shall be payable solely from funds provided pursuant to
this chapter, and no liability or obligation shall be imposed upon
the state and none shall be incurred by the authority beyond the
extent to which moneys shall have been provided pursuant to this
chapter.
   26043.14.  (a) Moneys in the bank fund received from the proceeds
of bonds issued pursuant to this division for the purposes of this
chapter may not be transferred to any other fund except as necessary
to pay the expenses of operating the program authorized by this
chapter, nor shall the authority utilize any moneys other than moneys
in the bank fund to satisfy liabilities arising from projects
authorized by this chapter.
   (b) The bank fund, on behalf of the authority, may borrow or
receive moneys from the authority or from any federal, state, or
local agency or private entity, in order to create reserves in the
bank fund as provided in this chapter and as authorized by resolution
of the authority.
   26043.15.  (a) Notwithstanding Chapter 2 (commencing with Section
12850) of Part 2.5 of, and Article 2 (commencing with Section 13320)
of Chapter 3 of Part 3 of, Division 3 of Title 2 of the Government
Code, expenditures of the bank fund shall not be subject to the
supervision or approval of any other officer or division of state
government, with the exception of the Legislature. However, the
authority's budget shall be prepared and reviewed not later than
November 1 of each year and the authority shall submit to the
Legislature a report of its activities for the prior fiscal year.
However, the authority's budget regarding the bank fund shall be
prepared and reviewed in accordance with Section 50913 of the
Government Code, and, not later than November 1 of each year, the
authority shall submit to the Legislature a report of its activities
in implementing this chapter for the prior fiscal year. The authority'
s operating budget shall be subject to review and appropriation in
the annual Budget Act.
   (b) The submissions required pursuant to subdivision (a) shall be
submitted in accordance with Section 9795 of the Government Code.

      Article 4.  Reporting


   26043.50.  (a) On or before January 1, ____, the Legislative
Analyst's Office shall submit a report to the Joint Legislative
Budget Committee on the effectiveness of this chapter by evaluating
all of the following factors:
   (1) The number of jobs created by the loan program in California.
   (2) The number of businesses that have remained in California or
relocated to California as a result of the loan program.
   (3) The amount of state and local revenue and economic activity
generated by the loan program.
   (4) The amount of reduction in greenhouse gas emissions, air and
water pollution, and energy consumption.
   (5) Other factors deemed appropriate by the Legislative Analyst.
   (b) This article shall remain in effect only until January 1,
____, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, ____, deletes or extends
that date.  
  SEC. 2.    Section 399.8 of the Public Utilities
Code is amended to read:
   399.8.  (a) In order to ensure that the citizens of this state
continue to receive safe, reliable, affordable, and environmentally
sustainable electric service, it is the policy of this state and the
intent of the Legislature that prudent investments in energy
efficiency, renewable energy, and research, development and
demonstration shall continue to be made.
   (b) (1) Every customer of an electrical corporation shall pay a
nonbypassable system benefits charge authorized pursuant to this
article. The system benefits charge shall fund energy efficiency,
renewable energy, and research, development and demonstration.
   (2) Local publicly owned electric utilities shall continue to
collect and administer system benefits charges pursuant to Section
385.
   (c) (1) The commission shall require each electrical corporation
to identify a separate rate component to collect revenues to fund
energy efficiency, renewable energy, and research, development and
demonstration programs authorized pursuant to this section beginning
January 1, 2002, and ending January 1, 2012. The rate component shall
be a nonbypassable element of the local distribution service and
collected on the basis of usage.
   (2) This rate component shall not exceed, for any tariff schedule,
the level of the rate component that was used to recover funds
authorized pursuant to Section 381 on January 1, 2000. If the amounts
specified in paragraph (1) of subdivision (d) are not recovered
fully in any year, the commission shall reset the rate component to
restore the unrecovered balance, provided that the rate component
shall not exceed, for any tariff schedule, the level of the rate
component that was used to recover funds authorized pursuant to
Section 381 on January 1, 2000. Pending restoration, any annual
shortfalls shall be allocated pro rata among the three funding
categories in the proportions established in paragraph (1) of
subdivision (d).
   (d) The commission shall order San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company to collect these funds commencing on January 1, 2002, as
follows:
   (1) Two hundred twenty-eight million dollars ($228,000,000) per
year in total for energy efficiency and conservation activities,
sixty-five million five hundred thousand dollars ($65,500,000) in
total per year for renewable energy, and sixty-two million five
hundred thousand dollars ($62,500,000) in total per year for
research, development and demonstration. The funds for energy
efficiency and conservation activities shall continue to be allocated
in proportions established for the year 2000 as set forth in
paragraph (1) of subdivision (b) of Section 381.
   (2) The amounts shall be adjusted annually at a rate equal to the
lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
   (e) The commission shall ensure that each electrical corporation
allocates funds transferred by the Energy Commission pursuant to
subdivision (b) of Section 25743 of the Public Resources Code in a
manner that maximizes the economic benefit to all customer classes
that funded the New Renewable Resources Account.
   (f) The commission and the Energy Commission shall retain and
continue their oversight responsibilities as set forth in Sections
381 and 384, and Chapter 7.1 (commencing with Section 25620) and
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
   (g) An applicant for the Large Nonresidential Standard Performance
Contract Program funded pursuant to paragraph (1) of subdivision (b)
and an electrical corporation shall promptly attempt to resolve
disputes that arise related to the program's guidelines and
parameters prior to entering into a program agreement. The applicant
shall provide the electrical corporation with written notice of any
dispute. Within 10 business days after receipt of the notice, the
parties shall meet to resolve the dispute. If the dispute is not
resolved within 10 business days after the date of the meeting, the
electrical corporation shall notify the applicant of his or her right
to file a complaint with the commission, which complaint shall
describe the grounds for the complaint, injury, and relief sought.
The commission shall issue its findings in response to a filed
complaint within 30 business days of the date of receipt of the
complaint. Prior to issuance of its findings, the commission shall
provide a copy of the complaint to the electrical corporation, which
shall provide a response to the complaint to the commission within
five business days of the date of receipt. During the dispute period,
the amount of estimated financial incentives shall be held in
reserve until the dispute is resolved.
   (h) The commission shall require each electrical corporation to
remit ____ dollars ($ ____) collected pursuant to this section to the
California Alternative Energy and Advanced Transportation Financing
Authority for deposit in the California Alternative Energy and
Advanced Transportation Financing Authority Energy Efficiency
Retrofit Bank Fund established pursuant to Section 26043.10 of the
Public Resources Code.  
  SEC. 3.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.