Bill Text: CA SBX128 | 2011-2012 | Regular Session | Introduced
Bill Title: Clean Energy Jobs and Investment Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-09-10 - From committee without further action. [SBX128 Detail]
Download: California-2011-SBX128-Introduced.html
BILL NUMBER: SBX1 28 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Padilla and Steinberg
AUGUST 29, 2011
An act to repeal and add Section 25740.5 of, and to repeal and add
Chapter 7.1 (commencing with Section 25620) of Division 15 of, the
Public Resources Code, and to amend Sections 384 and 399.8 of the
Public Utilities Code, relating to energy, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 28, as introduced, Padilla. Clean Energy Jobs and Investment
Act.
(1) Under the Public Utilities Act (the act), the Public Utilities
Commission (PUC) has regulatory authority over public utilities,
including electrical corporations, as defined. The Reliable Electric
Service Investments Act within the act requires the PUC to require an
electrical corporation, until January 1, 2012, to identify a
separate electrical rate component, which the PUC refers to as the
"public goods charge," to fund energy efficiency, renewable energy,
and research, development, and demonstration programs that enhance
system reliability and provide in-state benefits. A violation of the
Public Utilities Act is a crime.
This bill would extend the requirement to collect the public goods
charge January 1, 2020, and would increase the amount of funds the
PUC would require the electrical corporations to collect through the
public goods charge. Because a violation of this requirement is a
crime, this bill would impose a state-mandated local program by
extending the operation of a crime. By extending and expanding the
collection of the public goods charge, the bill would result in a
change in state taxes for the purpose of increasing state revenues
within the meaning of Section 3 of Article XIII A of the California
Constitution, and thus would require for passage the approval of 2/3
of the membership of each house of the Legislature.
(2) Existing law requires that the moneys collected between
January 1, 2007, and January 1, 2012, from the electrical
corporations for public interest research, development, and
demonstration projects be deposited in the Public Interest Research,
Development, and Demonstration Fund and be used for the purposes of
the Public Interest Research, Demonstration, and Development Program.
This bill would repeal the Public Interest Research,
Demonstration, and Development Program and would enact the Clean
Energy Jobs and Investment Act. The bill would establish the Clean
Energy Investment Council consisting of specified individuals to
provide strategic policy guidance for the implementation of the act.
The bill would require the State Energy Resources Conservation and
Development Commission (Energy Commission) to establish and
administer the California Energy Innovation Program (CEIP) to fund
research, development, and demonstration projects that may lead to
technological advancement and breakthroughs to overcome those
barriers that prevent the achievement of the state's energy policy
goals. The bill would require the Energy Commission to convene, no
less than twice a year, meetings of the CEIP Advisory Council
consisting of members representing specified entities and would
require the council to identify the technological challenges that
most warrant funding under the CEIP and opportunities for joint
funding of projects and to make recommendations to avoid funding
duplicative projects. The bill would require the Energy Commission to
adopt regulations or modify existing regulations to implement the
CEIP. The bill would require the Energy Commission to consult with
the CEIP Advisory Council to establish a process for tracking the
progress and outcome of funded projects. The bill would require the
Energy Commission to consult with the CEIP Advisory Council and the
Treasurer to establish terms that may be imposed as conditions for
the receipt of CEIP funding. The bill would require the Energy
Commission, no later than March 31 of each year, to prepare and
submit to the Legislature an annual report regarding projects funded
by the CEIP. The bill would establish the Clean Energy Innovation
Program Fund in the State Treasury, and, upon appropriation by the
Legislature, moneys in the fund would be expended by the Energy
Commission to implement the CEIP. The bill would provide that moneys
remaining in the Public Interest Research, Development, and
Demonstration Fund as of January 1, 2012, be transferred to the Clean
Energy Innovation Program Fund.
(3) Existing law requires the Energy Commission to establish
programs to optimize public investment and ensure that the most
cost-effective and efficient investments in renewable energy
resources are vigorously pursued (Renewable Energy Resources
Program). Existing law requires, until January 1, 2012, that moneys
from the public goods charge collected for renewable energy be
transferred to the Renewable Resource Trust Fund, a continuously
appropriated fund except for administrative expenses, for the purpose
of implementing the program.
This bill would revise and recast the Renewable Energy Resources
Program to, among other things, provide investment in energy storage
technologies. The bill would establish the Clean Energy Investment
Team within the Energy Commission for specified purposes of the
program. The bill would extend to January 1, 2020, the transfer of
the public goods charge collected for renewable energy to the
Renewable Resource Trust Fund. Because the bill would revise the
purposes for which the funds may be used and extend the deposit of
moneys into a continuously appropriated fund, this bill would make an
appropriation.
(4) 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.
(5) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 7.1 (commencing with Section 25620) of Division
15 of the Public Resources Code is repealed.
SEC. 2. Chapter 7.1 (commencing with Section 25620) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 7.1. CLEAN ENERGY JOBS AND INVESTMENT ACT
Article 1. General Provisions
25620. This chapter shall be known and may be cited as the Clean
Energy Jobs and Investment Act.
25620.1. The Legislature finds and declares all of the following:
(a) Investing in clean energy creates jobs, attracts and grows
businesses, and increases California's economic competitiveness.
(b) Investing in energy efficiency provides lower energy bills for
individual households and businesses and saves all ratepayers money
through reduced need for new powerplants and transmission and
distribution systems.
(c) Clean energy investments benefit ratepayers by cutting energy
waste, diversifying energy supplies, increasing energy security and
grid reliability, reducing harmful air pollutants, and protecting
public health and the environment.
(d) California has been a leader in clean energy development and
deployment, saving consumers billions of dollars from increased
energy efficiency, creating new jobs and businesses, and fostering
innovation through research and development.
(e) Meeting California's renewable energy, energy efficiency, and
emissions reduction policies will require strategic public
investments in clean energy research, development, deployment, and
commercialization.
25620.2. It is the intent of the Legislature that investments
made pursuant to this chapter do all of the following:
(a) Develop and deploy clean energy technologies that maximize job
creation and regional sustainability, strengthen California
businesses and economic competitiveness, and provide multiple
benefits to ratepayers.
(b) Save ratepayers money through reduced need for new powerplants
and transmission and distribution systems.
(c) Accelerate the development and deployment of clean energy
technologies that meet the California renewables portfolio standard
specified in Chapter 1 of the Statutes of the First Extraordinary
Session of 2011, energy storage requirements specified in Chapter 469
of the Statutes of 2010, Chapter 470 of the Statutes of 2009, and
subparagraph (C) of paragraph (9) of subdivision (b) of Section 454.5
of the Public Utilities Code.
(d) Respond to changing energy and technology market conditions.
(e) Leverage investments in clean energy to maximize ratepayer
benefits, reduce costs, and achieve sustainable changes in the market
so that public investment will no longer be needed.
(f) Help local governments to plan, permit, finance, and implement
clean energy development.
(g) Maximize opportunities for low-income households and
disadvantaged communities in urban and rural areas of the state to
participate in these programs.
(h) Promote business and employment opportunities for small
business and women-, minority-, veteran-, and disabled-owned
businesses.
25620.3. For purposes of this chapter, the following terms mean
the following:
(a) "Biogas" means digester gas, landfill gas, and any gas derived
from an eligible biomass feedstock.
(b) "Biomass" means an organic material not derived from fossil
fuels, including, but not limited to, agricultural crops,
agricultural wastes and residues, waste pallets, crates, dunnage,
manufacturing and construction wood wastes, landscape and
right-of-way tree trimmings, mill residues that result from milling
lumber, rangeland maintenance residues, biosolids, sludge derived
from organic matter, and wood and wood waste from timbering
operations.
(c) "CEIP" or "program" means the Clean Energy Innovation Program,
formerly known as the Public Interest Energy Research (PIER)
program, developed pursuant to Section 25620.12.
(d) "Clean energy" means energy efficiency, including demand-side
management, renewable energy, clean transportation, water efficiency,
and energy storage.
(e) "Comprehensive energy efficiency retrofit," "whole house
retrofit," and "whole building retrofit" mean energy efficiency
retrofits that achieve greater than 20-percent energy savings through
a comprehensive package of audits, demand-side management options,
and energy-saving improvements, such as insulation and duct sealing;
heating, ventilation, and cooling system improvements; window and
appliance upgrades; lighting upgrades; demand response; and other
measures to increase energy efficiency.
(f) "Disadvantaged community" has the same meaning as that set
forth in Section 79505.5 of the Water Code.
(g) "Distributed generation" means electrical generation located
near the place of use.
(h) "Grid" means California's electrical grid, including both
transmission and distribution systems.
(i) "Grid integration" means the interconnection, and the seamless
and reliable operation, of generation and demand management
resources and strategies into the grid.
(j) "Low income" means an income at a level that is 200 percent of
the federal poverty level or lower.
(k) "Renewable energy" means eligible renewable energy resources
as defined in Section 399.12 of the Public Utilities Code.
25620.4. (a) The Clean Energy Investment Council is hereby
established to provide strategic policy guidance for the programs
funded pursuant to this chapter to ensure that they are targeted to
achieve state policy priorities, maximize benefits, and avoid
duplication with other agencies and programs. The council shall
consist of the following individuals or their designees:
(1) The President pro Tempore of the Senate or the Chair of the
Senate Committee on Energy, Utilities and Communications.
(2) The Speaker of the Assembly or the Chair of the Assembly
Committee on Utilities and Commerce.
(3) The Chair of the State Energy Resources Conservation and
Development Commission.
(4) The President of the Public Utilities Commission.
(5) The Chair of the State Air Resources Board.
(6) The Treasurer.
(7) The Chief Executive Officer of the Independent System
Operator, who shall serve as a nonvoting member of the council.
(b) Members of the Legislature shall participate in the activities
of the council to the extent that the participation is not
incompatible with their respective positions as Members of the
Legislature.
(c) The council shall hold at least one public meeting per year.
Article 2. Clean Energy Innovation Program
25620.10. This article shall be known and may be cited as the
Clean Energy Innovation Program.
25620.11. The Legislature finds and declares all of the
following:
(a) California has been a national leader in clean energy by
establishing ambitious goals, policies, and programs to increase
energy efficiency and generation from renewable energy sources.
(b) Achieving the state's energy goals will benefit the public and
energy utility ratepayers through reduced system costs and reduced
end-user charges for service.
(c) Barriers to achieving these energy goals include, but are not
limited to, significant technological and other challenges relating
to energy storage, renewable energy technology and its integration
into the electrical grid, energy efficiency technologies and
applications, smart grid technologies and applications, integration
of electric vehicles into the electrical grid, and accurately
forecasting the availability of renewable energy for integration into
the grid.
(d) Breakthroughs to overcome these technological challenges and
to enable the state to achieve its energy policy goals require
strategically focused research, development, and demonstration
projects.
(e) It is appropriate and necessary for the state to administer a
program of research, development, and demonstration to accelerate
technological advancement and breakthroughs that may enable the state
to achieve its energy policy goals.
25620.12. (a) The Clean Energy Innovation Program (CEIP) is
hereby established for the purpose of funding research, development,
and demonstration projects that may lead to technological advancement
and breakthroughs to overcome the barriers that prevent the
achievement of the state's energy policy goals.
(b) The commission shall develop and administer the program
consistent with this chapter.
25620.13. (a) The commission shall, no less than twice a year,
convene a meeting of the CEIP Advisory Council, which shall consist
of the following members:
(1) The chair of the commission, who shall serve as the chair of
the council.
(2) One representative from Pacific Gas and Electric Corporation.
(3) One representative from Southern California Edison
Corporation.
(4) One representative from San Diego Gas and Electric
Corporation.
(5) One representative from Southern California Gas Company.
(6) One representative from any participating publicly owned
utility.
(7) One representative from the Public Utilities Commission.
(8) One representative from the Independent System Operator.
(9) One representative from the State Air Resources Board.
(10) One representative from the Division of Ratepayer Advocates
within the Public Utilities Commission.
(11) Two representatives from consumer organizations, with one
appointed by the Senate Committee on Rules and one appointed by the
Speaker of the Assembly.
(12) Two representatives from environmental organizations, with
one appointed by the Senate Committee on Rules and one appointed by
the Speaker of the Assembly.
(13) Two representatives of environmental justice groups, with one
appointed by the Senate Committee on Rules and one appointed by the
Speaker of the Assembly.
(14) Two representatives from university research institutions,
with one appointed by the Senate Committee on Rules and one appointed
by the Speaker of the Assembly.
(15) Two representatives of clean energy businesses, associations,
or investors appointed by the Governor.
(16) Three at-large members appointed by the Governor.
(17) (A) Two nonvoting members from the Legislature, with one
Senator appointed by the Senate Committee on Rules and one Assembly
Member appointed by the Speaker of the Assembly.
(B) The Members of the Legislature shall participate in the
activities of the council to the extent that the participation is not
incompatible with their respective positions as Members of the
Legislature.
(b) Each nongovernmental member of the council shall serve a term
of three years.
(c) The council shall annually identify the technological and
other challenges that are the most significant barriers to achieving
the state's energy policy goals for which CEIP funding is most
warranted. These challenges shall include, but not be limited to,
energy storage, renewable energy and its integration into the
electrical grid, integration of electric vehicles into the electrical
grid, energy efficiency, and accurate forecasting of the
availability of renewable energy for integration into the electrical
grid.
(d) The council shall identify opportunities for joint funding of
research, development, and demonstration projects, and make
recommendations to help the commission avoid funding projects that
would duplicate projects already being funded by the Public Utilities
Commission, the State Air Resources Board, or any other public
agency or private organization.
25620.14. (a) The commission shall award CEIP funds for projects
that may lead to technological advancement and breakthroughs to
overcome barriers to achieving the state's energy policy goals and
that result in a portfolio of project awards that does all of the
following:
(1) Is strategically focused and sufficiently narrow to make
advancement on the most significant barriers to clean energy
deployment, including, but not limited to, energy storage, renewable
energy technology and its integration into the electrical grid,
energy efficiency technologies and applications, smart grid
technologies and applications, integration of electric vehicles into
the electrical grid, accurately forecasting the availability of
renewable energy for integration into the grid, or other significant
technological challenges identified by the CEIP Advisory Council
pursuant to Section 25620.13.
(2) Ensures that prior, current, and future research, development,
and demonstration projects are not unnecessarily duplicated.
(3) Invests in projects of California-based entities unless there
is a unique need that can be met only by an entity based outside of
California.
(4) Results in a reasonably equitable distribution of awards to
various geographic regions of California to the extent possible and
consistent with the provisions of this chapter.
(5) Maximizes expenditure of funds for research, development, and
demonstration projects and minimizes expenditure of funds for
administration and overhead costs.
(6) Utilities may receive funds only if they participate in the
program. Sectors that do not contribute to funding under Section
399.8 of the Public Utilities Code shall include in any application
information demonstrating that the application supports one or more
of the goals in Section 25620.1 and is intended to provide statewide
benefits to electric utility customers.
(b) The commission shall not award or expend CEIP funds for any
purposes except as provided in this chapter.
25620.15. (a) The commission shall adopt regulations, or modify
existing regulations, for the solicitation of award applications,
evaluation of applications, and the award of funds consistent with
this article.
(b) The regulations shall require each applicant to demonstrate
how the proposed project may lead to technological advancement and
potential breakthroughs to overcome barriers to achieving the state's
energy policy goals.
(c) The regulations shall require each reward recipient, as a
condition of receiving CEIP funds, to agree to any terms the
commission determines are appropriate for the state to accrue any
intellectual property interest or royalties that may derive from CEIP
funding.
(d) The regulations shall prohibit any person from participating
in the evaluation or disposition of any application if that person
has a conflict of interest regarding that application, within the
meaning of Section 87100 of the Government Code.
25620.16. The commission, prior to awarding any CEIP funds, and
in consultation with the CEIP Advisory Council, shall establish a
process for tracking the progress and outcomes of each funded
project, including an accounting of the amount of funds spent on
administrative and overhead costs and whether the project resulted in
any technological advancement or breakthrough to overcome barriers
to achieving the state's energy policy goals.
25620.17. The commission, prior to awarding any CEIP funds, and
in consultation with the CEIP Advisory Council and the Treasurer,
shall establish terms that may be imposed as a condition to receipt
of funding, as the commission determines appropriate, for the state
to accrue any intellectual property interest or royalties that may
derive from CEIP funding. The commission, when determining if
imposition of these terms is appropriate, shall balance the potential
benefit to the state from those terms and the effect those terms may
have on the state achieving its energy policy goals.
25620.18. (a) On or before March 31 of each year, the commission
shall prepare and submit to the Legislature an annual report in
compliance with Section 9795 of the Government Code that shall
include all of the following:
(1) A brief description of each project for which funding was
awarded in the immediately prior calendar year, including the name of
the recipient and amount of the award, and a description of how the
project may lead to technological advancement or breakthroughs to
overcome barriers to achieving the state's energy policy goals.
(2) A brief description of each CEIP-funded project that was
completed in the immediately prior calendar year, including the name
of the recipient, the amount of the award, and the outcomes of the
funded project, in accordance with the process described in Section
25620.16.
(3) A brief description of each CEIP-funded project for which an
award was made in previous years but that is not completed, including
the name of the recipient and amount of the award, and a description
of how the project may lead to technological advancement or
breakthroughs to overcome barriers to achieving the state's energy
policy goals.
(4) A list and description of the technological challenges that
the CEIP Advisory Council identifies as the most significant barriers
to achieving the state's energy policy goals, as identified by the
council pursuant to Section 25620.13 for the current year and all
prior years.
(b) The commission shall post on its Internet Web site each annual
report, and a searchable database containing information in the
annual report, and shall also include information on awards made
under the former Public Interest Research, Development, and
Demonstration Program.
(c) The commission shall establish procedures for protecting
confidential or proprietary information in public reports about
CEIP-funded projects.
SEC. 3. Section 25740.5 of the Public Resources Code, as amended
by Section 5 of Chapter 1 of the First Extraordinary Session of the
Statutes of 2011, is repealed.
25740.5. (a) The commission shall optimize public investment and
ensure that the most cost-effective and efficient investments in
renewable energy resources are vigorously pursued.
(b) The commission's long-term goal shall be a fully competitive
and self-sustaining supply of electricity generated from renewable
sources.
(c) The program objective shall be to increase, in the near term,
the quantity of California's electricity generated by renewable
electrical generation facilities located in this state, while
protecting system reliability, fostering resource diversity, and
obtaining the greatest environmental benefits for California
residents.
(d) An additional objective of the program shall be to identify
and support emerging renewable technologies in distributed generation
applications that have the greatest near-term commercial promise and
that merit targeted assistance.
(e) The Legislature recommends allocations among all of the
following:
(1) Rebates, buydowns, or equivalent incentives for emerging
renewable technologies.
(2) Customer education.
(3) Production incentives for reducing fuel costs, that are
confirmed to the satisfaction of the commission, at solid fuel
biomass energy facilities in order to provide demonstrable
environmental and public benefits, including improved air quality.
(4) Solar thermal generating resources that enhance the
environmental value or reliability of the electrical system and that
require financial assistance to remain economically viable, as
determined by the commission. The commission may require financial
disclosure from applicants for purposes of this paragraph.
(5) Specified fuel cell technologies, if the commission makes all
of the following findings:
(A) The specified technologies have similar or better air
pollutant characteristics than renewable technologies in the report
made pursuant to Section 25748.
(B) The specified technologies require financial assistance to
become commercially viable by reference to wholesale generation
prices.
(C) The specified technologies could contribute significantly to
the infrastructure development or other innovation required to meet
the long-term objective of a self-sustaining, competitive supply of
electricity generated from renewable sources.
(6) Existing wind-generating resources, if the commission finds
that the existing wind-generating resources are a cost-effective
source of reliable energy and environmental benefits compared with
other renewable electrical generation facilities located in this
state, and that the existing wind-generating resources require
financial assistance to remain economically viable. The commission
may require financial disclosure from applicants for the purposes of
this paragraph.
(f) Notwithstanding any other law, moneys collected for renewable
energy pursuant to Article 15 (commencing with Section 399) of
Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code
shall be transferred to the Renewable Resource Trust Fund. Moneys
collected between January 1, 2007, and January 1, 2012, shall be used
for the purposes specified in this chapter.
SEC. 4. Section 25740.5 is added to the Public Resources Code, to
read:
25740.5. (a) The Clean Energy Investment Team, composed of the
commission and working in close coordination with the Clean Energy
Investment Program's Advisory Committee, is hereby created to support
achievement of the state's renewable energy goals, including the
growth of distributed generation, and seek creative solutions to
barriers to development and deployment of technologies to achieve
those goals. The team shall work to provide technical assistance,
tools, and resources to support industry, local government, economic,
and workforce development leaders in efforts to overcome these
barriers.
(b) Activities eligible for investment pursuant to this chapter
include, but are not limited to, those which will maximize job
creation and economic growth through the deployment and
commercialization of renewable energy, grid integration, and energy
storage technologies. Activities authorized by this chapter shall
support and foster the development of a diverse, reliable, and
environmentally sustainable portfolio of renewable energy sources,
including, but not limited to, distributed generation, demonstration
projects on California state buildings or property, renewable
generation on farmland and the New Solar Homes Partnership (NSHP),
energy storage, clean energy manufacturing in California, existing
and advanced biogas, biomass, and other clean energy technologies,
and workforce development.
(c) (1) Any investments in biomass or biogas made pursuant to this
chapter shall be targeted to incubate and commercialize technologies
and facilities that do one or more of the following:
(A) Increase efficiency or reduce air pollution from existing
biomass facilities.
(B) Generate energy from regional agricultural or food processing
waste.
(C) Develop or expand facilities to capture emissions and generate
biogas from wastewater treatment facilities or landfills.
(D) Generate energy from community-scale, woody biomass facilities
that promote safe and resilient forests, provide rural community
benefits, protect air and water quality, and are ecologically
sustainable.
(2) The Natural Resources Agency, in coordination with the
California Environmental Protection Agency, shall develop and adopt
sustainability guidelines, in an open public process, governing the
production of forest biomass and biogas.
(d) Any investments in energy storage made pursuant to this
chapter shall focus on energy storage technologies and applications
on the utility side of the meter, including utility-owned energy
storage projects, which enhance renewable energy integration into the
grid or increase the efficiency of transmission and distribution
lines.
(e) (1) The commission shall, in coordination with the Office of
Planning and Research and the Secretary of the Natural Resources
Agency, provide targeted financial and technical assistance to local
and regional governments for the planning, siting, and permitting of
renewable energy facilities. These investments may include grants to
enable local governments to participate in regional energy and
conservation planning pursuant to the Natural Communities
Conservation Planning Act, (Chapter 10 (commencing with Section 2800)
of Division 3 of the Fish and Game Code) and other applicable laws.
These investments may also include the development of model
permitting applications and ordinances for distributed generation
facilities and other measures that facilitate efficient and
cost-effective development of renewable energy.
(2) Notwithstanding Section 2851 of the Public Utilities Code, the
funds collected pursuant to Section 399.8 of the Public Utilities
Code and used for the California Solar Initiative pursuant to
paragraph (3) of subdivision (e) of Section 2851 of the Public
Utilities Code shall be administered by the Public Utilities
Commission. The Public Utilities Commission shall administer the
program according to guidelines established by the commission
pursuant to this chapter. The commission shall adopt and update NSHP
program guidelines and rebate levels as needed and to ensure that
NSHP funding does all of the following:
(A) Includes solar hot water heating.
(B) Gives priority to NSHP developments in economically distressed
and disadvantaged communities.
(C) Provides incentives for low- and moderate-income households to
participate.
(D) Ensures that no less than 25 percent of the funds collected
for the NSHP shall be for multifamily units and rental dwellings.
(E) Ensures that no less than 25 percent of the funds collected
for the NSHP shall be in disadvantaged communities.
(F) Provides for increased accountability, a streamlined
application process, and an extension of the allowable reservation
period.
(f) The team shall, in coordination with other state entities,
periodically analyze the renewable technology market and workforce
trends and identify barriers to renewable energy industry development
in the state.
(g) The team shall develop and adopt a multiyear investment plan,
for approval by the commission, to establish priority activities for
the team to achieve the goals of this chapter and describe how
funding will complement but not duplicate existing public and private
investments, including existing state programs that further the
goals of this chapter.
(h) The commission shall create and consult with an advisory body
to work with the team as it develops the investment plan. The
advisory body shall be subject to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code)
. The team shall, at a minimum, hold one annual
public hearing on the advisory body's recommendations prior to the
commission's consideration and approval of the investment plan.
(i) Membership of the advisory body created pursuant to
subdivision (h) shall include, but is not limited to, investor-owned
utilities, the Public Utilities Commission and the Independent System
Operator, clean energy businesses and investors, local governments,
environmental groups, environmental justice groups, ratepayer groups,
business associations, and research and technical experts. The
advisory body shall meet at least twice annually to provide strategic
and technical guidance.
(j) On or before March 15, 2012, and on or before January 31
annually thereafter, the commission shall submit the draft multiyear
investment plan, as developed in accordance with subdivision (g), for
the upcoming fiscal year to all relevant policy and fiscal
committees of the Legislature.
(k) It is the intent of the Legislature that the investment plan
highlight and explain the rationale for any year-to-year changes to
the commission's activity strategy and priorities, particularly with
respect to specific demonstration programs or policy initiatives.
(l) It is the intent of the Legislature that submission of the
draft investment plan, along with timely notification of significant
modifications to the investment plan thereafter, will ensure
legislative oversight of the program and provide the Legislature with
all of the necessary information to fully understand how and why
funds are to be allocated and prioritized within the program.
(m) A demonstration project or activity funded by the commission
shall be approved at a noticed public hearing of the commission and
shall be consistent with the priorities established by the investment
plan adopted pursuant to subdivision (g).
(n) The commission may make a single source or sole source award
pursuant to this section. The same requirements set forth in Section
25620.5 shall apply to awards made on a single source basis or a sole
source basis.
(o) Moneys collected for renewable energy pursuant to Article 15
(commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code shall be transferred to the Renewable
Resource Trust Fund. Moneys collected between January 1, 2012, and
January 1, 2020, shall be used for the purposes specified in this
chapter.
SEC. 5. Section 384 of the Public Utilities Code is amended to
read:
384. (a) Funds transferred to the State Energy
Resources Conservation and Development Commission
pursuant to this article for purposes of public interest research,
development, and demonstration shall be transferred to the
Public Interest Research, Development, and Demonstration
Clean Energy Innovation Program Fund, which is hereby
created in the State Treasury. The fund is a trust fund and shall
contain money from all interest, repayments, disencumbrances,
royalties, and any other proceeds appropriated, transferred, or
otherwise received for purposes pertaining to public interest
research, development, and demonstration. Any appropriations that are
made from the fund shall have an encumbrance period of not longer
than two years, and a liquidation period of not longer than four
years.
(b) Funds deposited in the Public Interest Research,
Development, and Demonstration Clean Energy Innovation
Program Fund may be expended for projects that serve the
energy needs of both stationary and transportation purposes if the
research provides an electricity ratepayer benefit.
(c) The State Energy Resources
Conservation and Development Commission shall report
annually to the appropriate budget committees of the Legislature on
any encumbrances or liquidations that are outstanding at the time the
commission's Energy Commission's
budget is submitted to the Legislature for review.
(d) The balance of funds in the Public Interest Research,
Development, and Demonstration Fund as of January 1, 2012, shall be
transferred to the Clean Energy Innovation Program Fund.
SEC. 6. Section 399.8 of the Public Utilities Code is amended to
read:
399.8. (a) In order to ensure that the citizens of this state
continue to receive safe, reliable, affordable, and environmentally
sustainable electric service, it is the policy of this state and the
intent of the Legislature that prudent investments in energy
efficiency, renewable energy, and research, development and
demonstration shall continue to be made.
(b) (1) Every customer of an electrical corporation shall pay a
nonbypassable system benefits charge authorized pursuant to this
article. The system benefits charge shall fund energy efficiency,
renewable energy, and research, development and demonstration.
(2) Local publicly owned electric utilities shall continue to
collect and administer system benefits charges pursuant to Section
385.
(c) (1) The commission shall require each electrical corporation
to identify a separate rate component to collect revenues to fund
energy efficiency, renewable energy, and research, development and
demonstration programs authorized pursuant to this section beginning
January 1, 2002 2012 , and ending
January 1, 2012 2020 . The rate
component shall be a nonbypassable element of the local distribution
service and collected on the basis of usage.
(2) This rate component may not exceed, for any tariff schedule,
the level of the rate component that was used to recover funds
authorized pursuant to Section 381 on January 1, 2000. If the amounts
specified in paragraph (1) of subdivision (d) are not recovered
fully in any year, the commission shall reset the rate component to
restore the unrecovered balance, provided that the rate component may
not exceed, for any tariff schedule, the level of the rate component
that was used to recover funds authorized pursuant to Section 381 on
January 1, 2000. Pending restoration, any annual shortfalls shall be
allocated pro rata among the three funding categories in the
proportions established in paragraph (1) of subdivision (d).
(d) The commission shall order San Diego Gas and Electric Company,
Southern California Edison Company, and Pacific Gas and Electric
Company to collect these funds commencing on January 1, 2002
2012 , as follows:
(1) Two hundred twenty-eight fifty
million dollars ($228,000,000) ($250,000,000)
per year in total for energy efficiency and conservation
activities, sixty-five seventy-five
million five hundred thousand dollars
($65,500,000) ($75,000,000) in total per year
for renewable energy, and sixty-two
seventy-five million five hundred thousand
dollars ($62,500,000) ($75,000,000) in
total per year for research, development and demonstration. The funds
for energy efficiency and conservation activities shall continue to
be allocated in proportions established for the year 2000 as
set forth in paragraph (1) of subdivision (c) of Section 381
.
(2) The amounts shall be adjusted annually at a rate equal to the
lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
(e) The commission shall ensure that each electrical corporation
allocates funds transferred by the Energy Commission pursuant to
subdivision (b) of Section 25743 in a manner that maximizes the
economic benefit to all customer classes that funded the New
Renewable Resources Account.
(f) The commission and the Energy Commission shall retain and
continue their oversight responsibilities as set forth in Sections
381 and 383, and Chapter 7.1 (commencing with Section 25620) and
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
(g) An applicant for the Large Nonresidential Standard Performance
Contract Program funded pursuant to paragraph (1) of subdivision (b)
and an electrical corporation shall promptly attempt to resolve
disputes that arise related to the program's guidelines and
parameters prior to entering into a program agreement. The applicant
shall provide the electrical corporation with written notice of any
dispute. Within 10 business days after receipt of the notice, the
parties shall meet to resolve the dispute. If the dispute is not
resolved within 10 business days after the date of the meeting, the
electrical corporation shall notify the applicant of his or her right
to file a complaint with the commission, which complaint shall
describe the grounds for the complaint, injury, and relief sought.
The commission shall issue its findings in response to a filed
complaint within 30 business days of the date of receipt of the
complaint. Prior to issuance of its findings, the commission shall
provide a copy of the complaint to the electrical corporation, which
shall provide a response to the complaint to the commission within
five business days of the date of receipt. During the dispute period,
the amount of estimated financial incentives shall be held in
reserve until the dispute is resolved.
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 8. This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
