BILL NUMBER: ABX1 29	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 2, 2001
	AMENDED IN SENATE  MARCH 28, 2001
	AMENDED IN ASSEMBLY  MARCH 22, 2001
	AMENDED IN ASSEMBLY  MARCH 5, 2001
	AMENDED IN ASSEMBLY  FEBRUARY 20, 2001

INTRODUCED BY   Assembly  Member Kehoe   Members
Kehoe, Cedillo, Correa, Frommer, Jackson, Keeley, Lowenthal, Nation,
Pescetti, Reyes, Steinberg, and Strom-Martin 
    (Principal coauthors:  Assembly Members Pavley and Shelley)

   (Coauthors:  Assembly Members Lui and Negrete McLeod) 

                        FEBRUARY 5, 2001

   An act to add Article 2 (commencing with Section 81610) and
Article 2.5 (commencing with Section 81620) to Chapter 3 of Part 49
of the Education Code, to add  Article 6 (commencing with Section
14710) to Chapter 2 of Part 5.5 and  Article 4 (commencing with
Section 15350) to Chapter 1 of Part 6.7 of Division 3 of Title 2 of
 ,  the Government Code, to amend Sections 26003 and 26011.5
of, to add Section 26011.6 to, to add  Chapter 4.7
(commencing with Section 25370), Chapter 5.3 (commencing with Section
25425), and  Chapter 5.35 (commencing with Section 25437)
to Division 15 of, and to add and repeal Chapter 4 (commencing with
Section 14420) of Division 12 of, the Public Resources Code, to amend
 Sections 739 and 2827 of   Section 739 of, to
amend, repeal, and add Section 2827 of  , and to add Sections
739.10 and 739.11 to, the Public Utilities Code, relating to energy,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 29, as amended, Kehoe.  Energy.
   (1) Existing law establishes the State Energy Resources
Conservation and Development Commission in the Resources Agency, and
grants it authority with respect to various energy efficiency
measures and programs.  Existing law generally permits public
agencies to develop energy conservation, cogeneration, and
alternative energy supply sources at their facilities in order to
promote all feasible means of energy and water conservation. Existing
law also generally requires public agencies to meet specified
requirements regarding service, consulting, architectural, and
engineering contracts, and requires those contracts to be approved by
the Department of General Services.
   This bill would enact, until January 1, 2002, the Summer 2001
Energy Efficiency Projects by Community College Districts program,
which would fund the implementation of energy conservation,
efficiency, cogeneration, and alternate energy supply sources by
community college districts on public property.  The bill would
require a community college district to request proposals prior to
awarding or entering into a contract, agreement, or lease, and would
require the district to award each contract based on the
consideration of specified qualifications.  The bill would exempt
energy projects from specified requirements imposed on contracts
entered into by public agencies.  The bill would authorize the
 Director of General Services to exempt  
exemption of  any energy project proposed by a community college
district from existing advertising and competitive bidding
requirements if the director deems the exemption necessary, as
specified.
   The bill would require each community college district that
receives funds from the program to provide a report to the Chancellor
of the California Community Colleges, on or before January 1, 2002,
and would require the chancellor to report that information to the
Chairperson of the Joint Legislative Budget Committee, the
chairpersons of the appropriate policy and fiscal committees of each
house of the Legislature, and the Governor by March 1, 2002.
   By imposing additional duties on community college districts, this
bill would impose a state-mandated local program.
   This bill would establish the Statewide Energy Management Program
to assist community college districts to achieve energy independence
through the development of energy management plans, the construction
of sustainable green buildings, the use of renewable or other
distributed energy systems, and the expansion of statewide energy
education programs and services, as prescribed. The bill would
require the Board of Governors of the California Community Colleges,
in consultation with the commission, to develop guidelines for this
program.
   The bill would require the chancellor to establish an advisory
committee to provide recommendations regarding overall program
development, resource development and deployment, and strategies for
implementation and coordination of the program.
   (2) Existing law establishes the Technology, Trade and Commerce
Agency with specified powers and duties relating to economic
development and science and technology.  Existing law requires the
energy commission to establish a small business energy assistance
low-interest revolving loan program to fund the purchase of equipment
for alternative technology energy projects for California's small
businesses.
   This bill would require the agency to administer the California
Renewable Energy Loan Guarantee Program to guarantee loans made by
financial institutions to eligible businesses for the permitting,
manufacturing, acquisition, construction, or installation of
renewable energy systems that are intended to decrease demand on the
electricity grid.
   (3) Existing law establishes the California Conservation Corps to
conserve and develop natural resources, and enhance and maintain
environmentally important lands and waters through the use of
California's young women and men and to assist these youths in
becoming productive adults. Existing law establishes the Department
of Community Services and Development to provide a range of services
and activities having a measurable and potentially major impact on
causes of poverty, and to assist low-income individuals and families,
migrants, and the elderly poor to obtain employment, education,
income, housing, food, and emergency services.
   This bill would create the Mobile Energy Efficiency Brigade, to be
implemented by the corps and the department, to expand current
weatherization, energy-efficiency, and rehabilitation programs in
accordance with prescribed objectives.  These provisions would remain
in effect until January 1, 2003.
   (4) Existing law requires the energy commission to administer a
program of grants and loans with respect to energy efficiency
measures and programs.
   This bill would authorize the owner of any shopping center,
defined by the bill to mean a group of 2 or more retail stores that
use common parking facilities or that open to an enclosed common area
or a retail store that is at least 1,500 square feet, to request an
energy audit to be performed by an electrical corporation or local
publicly owned electric utility and to apply to the energy commission
for a loan for energy conservation projects identified by that
audit.  The bill would authorize the commission to disburse loans and
establish procedures for the application, disbursement, and
repayment of loans, as specified.  The bill would limit eligibility
for the loans to energy conservation projects that are implemented no
later than October 31, 2001.  
   The bill would create the Energy Conservation Loans to Shopping
Centers Account in the General Fund and would continuously
appropriate the money in that account to the commission to carry out
the bill.  The bill would require that any funds in the account not
encumbered by October 31, 2001, be transferred to the General Fund.

   (5) This bill would also require the energy commission to
administer a grant and loan program for eligible construction or
retrofit projects, as defined, and the Small Business Energy
Efficient Refrigeration Loan Program established by the bill.
   (6) The existing Energy Conservation Assistance Act of 1979, until
January 1, 2011, permits a school, hospital, public care
institution, or unit of local government to submit an application to
the energy commission for a loan of funds for the purpose of
financing all or a portion of the costs incurred in implementing a
project, as defined, including an energy conservation project.

   This bill would require the commission to administer a program of
grants to a city, county, or special district, including a school
district, to fund energy efficiency and conservation projects, as
defined, in facilities owned by those entities.  The grants would
provide up to 50% of the funding for the cost of the projects.

   (7) Existing law establishes the California Alternative Energy and
Advanced Transportation Financing Authority and prescribes the
duties of the authority with respect to, among other things,
promoting prompt and efficient development of energy sources that are
renewable or that more efficiently utilize and conserve scarce
energy resources.
   This bill would require the authority to establish a renewable
energy program to provide 3% per annum loans to public power
entities, independent generators, utilities, or businesses
manufacturing renewable energy generation components or systems, or
both, to generate new and renewable energy sources, as defined,
develop clean and efficient distributed generation, and demonstrate
the economic feasibility of new technologies.  The bill would require
the authority to  ensure that any financed project offer its
power within California on a long-term contract basis  
adopt emergency regulations, and annually report the results of the
program to the Legislature  .
   (8) Under existing law, the Public Utilities Commission requires
every electrical and gas corporation to file a schedule of rates and
charges providing baseline rates.  In establishing these rates,
existing law requires the commission to avoid excessive rate
increases for residential customers, and to establish an appropriate
gradual differential between the rates for the respective blocks of
usage.  Additionally, in establishing residential electric and gas
rates, including baseline rates, existing law requires the commission
to assure that the rates are sufficient to enable the electrical
corporation or gas corporation to recover a just and reasonable
amount of revenue from residential customers as a class, while
observing the principle that electricity and gas services are
necessities, for which a low affordable rate is desirable.  
   This bill would instead require the commission to establish a
3-tier increasing block rate structure for residential electric
customers at the earliest practicable date. 
   The bill would require the commission, at least until December 31,
2003, to require that all charges for residential electric customers
are volumetric, and to prohibit any electrical corporation from
imposing any charges on residential consumption that are independent
of consumption unless the charges are in place prior to the effective
date of the bill.
   This bill would require the commission to make, on a periodic
basis, for residential customers, adjustments that are necessary to
eliminate any linkage between recovery of an electrical corporation's
authorized revenues and its electrical sales.
   The bill would also require the commission to  undertake
any necessary measures to allow for the replacement of nonresidential
meters with time-of-use meters under specified circumstances and
would provide that nonresidential customers on time-of-use meters are
subject to a time-of-use rate schedule   until December
31, 2002, to ensure that errors in estimates of demand elasticity of
sales do not result in material over or undercollections of the
electrical corporations  .
   Because existing law makes any public utility that violates
specified provisions regulating public utilities guilty of a
misdemeanor, this bill would impose a state-mandated local program by
creating a new crime.
   (9) Existing law exempts an electrical corporation that provides
distribution service for direct transactions from the obligation to
provide net energy metering to a customer, if the customer
participates in direct transactions with an electric supplier that
does not offer net energy metering, and authorizes an electrical
corporation that provides distribution service for direct
transactions to recover from the electric service provider of a
customer that participates in direct transactions the incremental
costs of metering and billing service related to net energy metering,
in an amount set by the Public Utilities Commission.  Existing law
also establishes formulas for the calculation of net monthly
consumption for eligible customer-generators taking service employing
baseline, over baseline, and time use of rates.  Existing law, for
purposes of those provisions, defines the term "electric service
provider" to include specified entities and defines "eligible
customer-generator," to mean a residential customer, or a small
commercial customer of an electric service provider.
   This bill would revise the definition of  an  electric
service provider  , until June 1, 2002,  to also include any
other entity that provides electrical service.  The bill would
revise the definition of  an  eligible customer-generator
 , until June 1, 2002,  to also include commercial,
industrial, or agricultural customers of an electric service
provider.  The bill would eliminate  , until June 1, 2002, 
certain requirements with respect to the information electric service
providers are required to provide to the ratemaking authority
relating to total rated generating capacity used by eligible
customer-generators.
   (10) Existing law requires every electric service provider, upon
request, to make available to eligible customer-generators contracts
for net energy metering subject to specified limitations on the
number of contracts.
   This bill would eliminate the specified limitations on the number
of contracts.
   (11) Existing law specifies that if a customer participates in
direct transactions with an electric supplier that does not offer net
energy metering, the electrical corporation that provides
distribution service for the direct transactions is not obligated to
provide net energy metering to the customer.
   This bill would, instead, specify that if a customer participates
in direct transactions with an electric supplier that does not
provide distribution service for the direct transactions, the
electrical corporation that provides distribution service for an
eligible customer-generator is not obligated to provide net energy
metering to the customer.  
   (12) Existing law requires that each net energy metering contract
or tariff be identical, with respect to rate structure, all retail
rate components, and any monthly charges, to the contract or tariff
to which the same customer would be assigned if that customer was not
an eligible customer-generator.
   This bill would prohibit eligible customer-generators from being
assessed standby charges on the electrical generating capacity or the
kilowatthour production of an eligible solar or wind electrical
generating facility unless the Public Utilities Commission adopts
specified charges.  
   This bill would require the commission to track specified standby
and interconnection costs, and system and local benefits provided by
eligible net metered end use consumers.  The bill would also require
the commission to adopt standby charges that accurately reflect the
reasonable costs and benefits conveyed by self-generation. 

   (13)   Under existing law, the Department of
Community Services and Development is required to receive and
administer the federal Low-Income Home Energy Assistance Program
Block Grant and allocate the funds from that grant in a specified
manner.  Under existing law, a portion of these block grant funds is
required to be allocated for weatherization services.  The department
also receives and administers federal Department of Energy
Low-Income Weatherization Assistance Program funds, to provide
installation of weatherization measures that increase the energy
efficiency of dwellings occupied by low-income persons.
   This bill would provide funding to the department for low-income
weatherization programs.   
   (14)  
   (12)  Under existing law, the Emerging Renewable Resources
Account is created in the Renewable Resource Trust Fund and specified
portions of revenues collected by electrical corporations for the
benefit of in-state operation and development of existing and new and
emerging renewable resource technologies are required to be
transmitted to the energy commission for deposit in the Renewable
Resource Trust Fund.  The money in the fund and the account is
continuously appropriated to the energy commission for specified
purposes, including a multiyear, consumer-based program to foster the
development of emerging renewable technologies in distributed
generation applications.  Existing law requires this program to
provide monetary rebates, buydowns, or equivalent incentives to
purchasers, lessees, lessors, or sellers of eligible electricity
generating systems and limits the incentives to a maximum percentage
of the system price, as defined by the energy commission.
   This bill would require the commission to expand existing programs
to promote clean distribution generation technologies.
   The bill would authorize the commission to increase the maximum
rebate levels for certain distributed emerging technologies that have
a peak capacity greater than 10 kilowatts, if the commission makes a
specified determination.   
   (15)  
   (13) Existing law authorizes the State Public Works Board to
develop energy and water conservation and cogeneration and
alternative energy and water supply sources at state facilities.
Existing law requires the buildings acquired or constructed by the
board to be operated and maintained by the board until they are
placed under the jurisdiction of the Department of General Services
or another state agency.
   This bill would require the department to identify, from the
department's state property inventory, all buildings where it is
feasible to reduce energy consumption and achieve energy
efficiencies, as well as to produce onsite electrical generation or
reduce the level of peak-period electrical consumption for that
building using alternative energy equipment thermal energy storage or
cogeneration equipment.
   This bill would authorize the Director of General Services to
enter into 3rd party agreements to implement energy efficiencies and
feasible onsite electrical generation.  The bill would authorize the
director to enter into negotiated agreements to accomplish specified
objectives relating to energy.
   This bill would require the department to retrofit specified
public buildings where feasible, provided that work on public
buildings of the California State University is performed at the
request or with the consent of the university.
   This bill would require the department to prepare and submit to
the Legislature and the Governor, a report of the energy savings, if
any, in terms of megawatts per year, for each public building
retrofitted on or before 2 years after the effective date of this
bill, and every 2 years thereafter.
  (14)  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, including the creation of a State
Mandates Claims Fund to pay the costs of mandates that do not exceed
$1,000,000 statewide and other procedures for claims whose statewide
costs exceed $1,000,000.
   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.
   (16) The bill would appropriate or reappropriate $405,150,000 from
specified funds to the Controller to be allocated in accordance with
a specified schedule to accomplish the purposes of this bill.
   (17) The bill would declare that it is to take effect immediately
as an urgency statute.
   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.  Article 2 (commencing with Section 81610) is added to
Chapter 3 of Part 49 of the Education Code, to read:

      Article 2.  Summer 2001 Energy Efficiency Projects By Community
College Districts

   81610.  It is the intent of the Legislature to permit community
college districts to implement energy conservation, efficiency,
cogeneration, and alternate energy supply sources on public property
in accordance with this chapter in the most expedient manner
possible.  It is also the intent of the Legislature that the 
Department of General Services and the  California
Community College system take all steps necessary to ensure that the
energy efficiency projects contemplated by this chapter are in place
by the summer of 2001.
   81611.  For the purposes of this article, "energy project" means
equipment, load management techniques, or other measures or services
that reduce energy consumption and provide for more efficient use of
energy in buildings or facilities owned or operated by community
college districts, and that can be completed and energy savings
realized by the summer of 2001 in order to minimize the need for
future state resources to pay for increased energy costs.
   81612.  (a) Notwithstanding any other provision of law, prior to
awarding, or entering into, any contract, agreement, or lease
pursuant to this article, a community college district shall request
proposals from qualified persons.  After evaluating those proposals,
the community college district shall award contracts to responsible
persons or entities who submit responses to a request for proposal
which are responsive to the requirements of the request for
proposals.  A community college may award a contract for an energy
project under this article to any responsible person or entity timely
submitting a responsive answer to the request for proposals based on
qualifications, including the consideration of all of the following
factors:
   (1) Experience of the contractor, architect, engineer, or other
consultant, as applicable.
   (2) Type of technology to be employed by the contractor on the
energy project.
   (3) Cost to the district.
   (4) Any other considerations deemed relevant by the district.
   (b) Notwithstanding any other provision of law, community college
districts may award contracts pursuant to a request for proposals
issued under this article or award contracts to persons or entities
selected from the pool of qualified energy service companies
established pursuant to Section 388 of the Public Utilities Code,
when it is determined they are qualified to perform the work on a
particular project.  A request for proposal does not have to be
prepared if a community college district elects to award a contract
for an energy project to only those persons or entities included in
the pool of qualified energy service companies under Section 388 of
the Public Utilities Code.  If a community college district elects to
seek proposals for an energy project pursuant to a request for
proposals and from the pool of qualified energy service companies
under Section 388 of the Public Utilities Code, the community college
district shall prepare a request for proposals.  Award of such a
contract shall be based upon the factors described in subdivision
(a).
   81613.  (a) Notwithstanding the repeal of this section by Section
81615, on or before January 1, 2002, each community college district
receiving funds appropriated pursuant to this section shall provide a
report to the Chancellor of the California Community Colleges with
the following information:
   (1) The amount of funding expended.
   (2) The measures, programs, or activities funded.
   (3) A description of the effectiveness of the measures, programs,
or activities funded in reducing peak electricity demand and
improving energy efficiency, as measured in kilowatthours of
electricity or British thermal unit hours reduced per dollar
expended.
   (b) Notwithstanding the repeal of this section by Section 81615,
on or before March 1, 2002, the Chancellor of the California
Community Colleges shall provide a summary of the reports provided
pursuant to subdivision (a) to the Chairperson of the Joint
Legislative Budget Committee, to the chairpersons of the appropriate
policy and fiscal committees of both houses of the Legislature, and
to the Governor.
   81614.  Any contracts entered into pursuant to this chapter by a
community college district are exempt from the following
requirements:
   (a) Architectural, engineering, construction management, and
consulting contracts are exempt from Chapter 10 (commencing with
Section 4525) of Division 5 of Title 1 of the Government Code.
   (b) All contracts are exempt from Article 3.5 (commencing with
Section 81660).
   (c) All contracts are exempt from the publication requirements set
forth in Section 81641.
   (d) All contracts are exempt from Article 41 (commencing with
Section 20650) of Chapter 1 of Part 3 of Division 2 of the Public
Contract Code, except that if in the request for proposals for an
energy project under this article, a community college district has
established a requirement for bid security, a response to the request
for proposal will be deemed responsive only if the response is
submitted with the required bid security.
   (e) If the value of a project awarded by a community college
district to a contractor to implement an energy project under this
article is in excess of twenty-five thousand dollars ($25,000),
regardless of whether the requirement is noted in the request for
proposals, the contractor awarded such a contract shall obtain and
submit to such a community college district for approval of a Labor
and Materials Payment Bond conforming to the requirements of Section
3248 of the Civil Code.
   (f) If required by the terms of a request for proposals issued by
a community college district under this article, the person or entity
awarded such a contract shall obtain a performance bond conforming
with the applicable requirements of the request for proposals.
   81615.  This article shall remain in effect only until January 1,
2002, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2002, deletes or extends
that date.
  SEC. 2.  Article 2.5 (commencing with Section 81620) is added to
Chapter 3 of Part 49 of the Education Code, to read:

      Article 2.5.  Statewide Energy Management Program

   81620.  This article shall be known, and may be cited, as the
Statewide Energy Management Program.
   81621.  The definitions set forth in this section govern the
construction of this article:
   (a) "Commission" means the State Energy Resources Conservation and
Development Commission.
   (b) "Energy independence" means the utilization of existing and
developing technologies to meet energy needs onsite, including, but
not necessarily limited to, the utilization of solar, fuel cells, and
other renewable and clean onsite energy sources, the optimization of
the use of daylighting, the use of passive solar orientation, and
the use of construction techniques that minimize energy loss, such as
appropriate insulation and lighting fixtures.
   (c) "Energy management plans" means the plans that community
colleges develop with guidance from the Statewide Energy Management
Program to implement energy efficiency projects such as sustainable
green buildings, renovations, and wind or solar farms that will move
the community colleges toward energy independence.
   (d) "Program" means the Statewide Energy Management Program,
established under this article, which is a state program modeled
after the Federal Energy Management Program.
   (e) "Renewable or other distributed energy systems" means
alternative efficient sources of energy such as daylighting,
photovoltaic panels (rooftops or solar farms), passive solar heating,
fuel cells, and steam.   Diesel-fueled electric generating
systems are not included in this definition. 
   (f) "Sustainable green building" means a building that has been
designed to reduce both direct and indirect environmental
consequences associated with construction, occupancy, operation,
maintenance, and eventual decommissioning, and whose design is
evaluated for cost, quality of life, future flexibility, ease of
maintenance, energy and resource efficiency, and overall
environmental impact, with an emphasis on life-cycle cost analysis.
   81622.  (a) In consultation with the commission, the Board of
Governors of the California Community Colleges shall further develop
and refine certain guidelines for a Statewide Energy Management
Program that have been established under an ongoing joint effort of
the commission and DeAnza College.  This statewide effort shall allow
community college districts to achieve energy independence through
the development of energy management plans, the construction of
sustainable green buildings, the use of renewable or other
distributed energy systems, and the expansion of statewide energy
education programs and services.
   (b) By 2010, the program shall, at a minimum, facilitate the
completion of 20 district energy management plans, 150 renewable or
other distributed energy systems, and 20 sustainable green buildings
on community college campuses statewide.
   (c) In consultation with the commission, the board of governors
shall accomplish all of the following:
   (1) Review and comment on academic, occupational, and vocational
education materials developed by the commission, the Electric Power
Research Institute, public utilities, and the community colleges to
improve energy education programs and services.
   (2) Review and recommend actions regarding successful energy
education programs and services that can be identified for
replication, personnel exchanges, or implementation of successful
practices.
   (3) Review and recommend actions regarding program resources for
use by the community colleges or state agencies in improving energy
education programs and services.
   (4) Review exemplary programs and facilities, and recommend
activities for adoption, replication, or policy advice.
   (5) Review, comment, and recommend actions regarding services that
will effect energy conservation.
   (6) Review and comment on funding requests received to improve or
enhance energy education.
   (7) Review and comment on occupational and vocational training
programs and services to meet current employment standards in energy
occupations.
   81623.  The board of governors shall encourage the construction of
community college sustainable green buildings that implement energy
efficiency, sustainable building concepts, and solar electric, fuel
cell, and other technologies.  On the effective date of this article,
the board of governors shall immediately seek a prototype
sustainable green community college instructional building that can
be a model for all new construction and retrofit projects statewide.

   81624.  The Chancellor of the California Community Colleges shall
establish an advisory committee for the Statewide Energy Management
Program, and determine the membership of that committee.  The
advisory committee, with technical assistance from the commission,
shall make recommendations to the chancellor regarding overall
program development, resource development and deployment, and
strategies for implementation and coordination of the program.  A
leadership role on this committee shall initially be provided by the
staff of the commission and DeAnza College who have been involved
since 1992 in a joint effort to promote training, energy efficiency,
and energy independence in the California Community Colleges.  This
leadership role shall rotate to other community colleges as they
complete their own district energy management plans.  
  SEC. 2.5.  Article 6 (commencing with Section 14710) is added to
Chapter 2 of Part 5.5 of Division 3 of Title 2 of the Government
Code, to read:

      Article 6.  State Building Energy Retrofits

   14710.  As used in this article, the following terms have the
following meanings:
   (a) "Alternative energy equipment" means alternative energy
equipment, as defined in subdivision (d) of Section 15814.11, and, in
the case of fossil fuel generation, 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 the adoption of those standards and guidance, for the purposes of
this article, distributed energy resources shall meet emission levels
equivalent to nine ppm oxides of nitrogen, averaged over a
three-hour period, or best available control technology for the
applicable air district, whichever is lower.
   (b) "Cogeneration equipment" means equipment used for
cogeneration, as defined in Section 218.5 of the Public Utilities
Code.
   (c) "Feasible" means capable of being accomplished in a successful
manner within a reasonable period of time, taking into account
life-cycle costing analyses, and environmental, social, and
technological factors, however, renewable technologies shall not be
exempt based solely on cost considerations.
   (d) "Public building" means a public building, as defined in
Section 15802.
   (e) "State agency" means any state agency, board, department or
commission, including, but not limited to, the entities specified in
subdivision (a) of Section 15814.12.
   14711.5.  (a) The department shall identify each public building
in the department's state property inventory where it is feasible for
that building to reduce energy consumption and achieve energy
efficiencies, as well as to produce its own onsite electrical
generation or reduce its level of peak demand electricity consumption
using alternative energy equipment, thermal energy storage
technologies, or cogeneration equipment.
   (b) The department may consider a variety of factors, including,
but not limited to, the size of the public building, its location,
the ease of conversion to onsite electrical generation, peak demand
reduction efficiency, cost effectiveness, and the amount of megawatts
generated or shifted to off-peak periods.
   14712.  The director may enter into third party agreements that
the director determines are appropriate to implement energy
efficiencies and feasible onsite electric generation pursuant to
Section 14711.5 and to achieve the goals of this section.  The
director may enter into negotiated agreements with parties on the
terms and conditions that the director deems are in the state's
interests to accomplish all of the following objectives:
   (a) Reduce overall energy consumption in state facilities by 30
percent.
   (b) Achieve energy self-sufficiency at state facilities using
clean, modern technologies that produce zero air emissions or that
meet or exceed state air quality standards.
   (c) Maximize the use of renewable energy technologies for both
onsite electrical generation as well as thermal energy production.
   (d)  Utilize private third party financing, where feasible, for
the construction, operation, and maintenance of such energy
investments.
   (e) Achieve these objectives at delivered energy costs equal to or
less than the cost of obtaining the energy through the electric grid
or other conventional means, as determined by the director.
   14713.  (a) Notwithstanding subdivision (b) of Section 15814.12,
the department shall retrofit all public buildings, identified in
Section 14711.5, where feasible, provided that work on public
buildings of the California State University shall be performed only
at the request or with the consent of the university.
   (b) If a public building generates more electricity than it uses,
it may make the energy available for the state electrical
distribution grid.
   14714.  On or before two years after the effective date of the act
adding this section, and every two years thereafter, the Department
of General Services shall prepare and submit to the Legislature and
the Governor, a report of the energy savings, if any, in terms of
megawatts per year, for each public building retrofitted pursuant to
this article. 
  SEC. 3.  Article 4 (commencing with Section 15350) is added to
Chapter 1 of Part 6.7 of Division 3 of Title 2 of the Government
Code, to read:

      Article 4.  Renewable Energy Loan Guarantee Program
   15350.  The Legislature finds and declares all of the following:
   (a) California is experiencing severe electrical shortages, which
endanger the health, safety, and economic development opportunity of
its citizens.
   (b) Immediate measures are needed to increase the electrical
generation capacity within California, including energy from
economical renewable systems.
   (c) California has been a leader in the development of renewable
energy systems, from solar to wind to the most advanced fuel cell
technology.
   (d) California must take all reasonable actions necessary to
encourage the continuing construction of renewable energy
infrastructure and to maximize reliable, renewable energy systems for
homes and businesses.
   (e) In order to maximize the commercial lending available to
renewable energy projects, it is necessary and appropriate to
establish a loan guarantee program to assist in obtaining commercial
loans to  manufacture, sell, purchase,  
purchase  and install renewable energy system projects.
   15351.  For the purposes of this article, the following
definitions apply:
   (a) "Eligible business" means an individual, corporation,
political body, partnership, joint venture, association, joint stock
company, trust, or unincorporated organization.
   (b) "Financial institution" means a financial institution
organized, chartered, or holding a license or authorization
certificate under a law of this state or the United States to make
loans or extend credit, and subject to supervision by an official or
agency of this state or the United States.
   (c) "Guarantee" means a written agreement between the agency and a
financial institution, by which the agency agrees to pay a specified
percentage of loan interest and principal for any combination of the
following:  permitting,  manufacturing, 
acquisition, construction, or installation of one or more renewable
energy systems located in the state if the eligible business defaults
on the loan and the financial institution complies with the terms of
the guarantee.
   (d) "Renewable energy system" means any device or combination of
devices, including distributed generation and cogeneration that meets
all of the following requirements:
   (1) Conserves or produces one or more of the following:
   (A) Heat.
   (B) Process heat.
   (C) Space heating.
   (D) Water heating.
   (E) Steam.
   (F) Space cooling.
   (G) Refrigeration.
   (H) Mechanical energy.
   (I) Electricity.
   (J) Energy in any form convertible to any of the uses specified in
subparagraphs (A) to (I), inclusive.
   (2) Does not expend or use conventional energy fuels, any fuel
derived from petroleum deposits, including, but not limited to, oil,
heating oil, gasoline, fuel oil, or natural gas, including liquified
natural gas, or nuclear fissionable materials, except as provided in
subsection (b) of Section 292.204 of Title 18 of the Code of Federal
Regulations.
   (3) Uses one of more of the following renewable electricity
generation technologies:
   (A) Biomass.
   (B) Solar thermal.
   (C) Photovoltaic.
   (D) Wind.
   (E) Geothermal.
   (F) Small hydropower (30 megawatts or less).
   (G) Digester gas.
   (H) Landfill gas.  
   (I) Municipal solid waste. 
   15352.  (a) The agency shall administer the California Renewable
Energy Loan Guarantee Program to guarantee loans made by financial
institutions to eligible businesses for the permitting,
manufacturing, acquisition, construction, or installation of
renewable energy systems that are intended to decrease the demand on
the electricity grid.
   (b) Notwithstanding any other provision of this article, the
California Renewable Energy Loan Guarantee Program shall not be used
to guarantee a loan for any small hydropower project that will
require a new or increased diversion from any natural stream, lake,
or other body of water, as described in Section 1200 of the Water
Code.
   15353.  (a) The secretary shall establish a Renewable Energy Loan
Guarantee Committee for the purpose of approving loan guarantees
based upon the criteria and procedures established by the agency.
The secretary may include agency staff, the Director of Finance,
representatives of other state agencies, and representatives of the
public on the committee.
   The secretary or his or her designee shall serve as the
chairperson of the committee.
   (b) The committee shall do both of the following:
   (1) Hold regularly scheduled meetings, at least quarterly, to
carry out the objectives and responsibilities of the committee.
   (2) Approve loan guarantees under this article.
   (c) The committee shall not approve any guarantee without a
determination that, at a minimum, the applicant appears able to repay
the guaranteed financing and the financing is adequately
collateralized.
   15354.  (a) The Renewable Energy Loan Guarantee Committee shall
comply with the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7), except as specified in
subdivision (c).
   (b) To the extent that the committee is subject to the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part (1), loan guarantee reviews described in
paragraph (2) of subdivision (c) shall be exempt from the
requirements of the act.
   (c) The California Public Records Act and the Bagley- Keene Open
Meeting Act shall not apply to the following activities of the
committee:
   (1) The disclosure of financial data contained in applications for
loan guarantees from the Renewable Energy Loan Guarantee Committee,
where the committee determines that disclosure of the financial data
would be competitively injurious to the applicant.  For this purpose,
financial data includes, but is not limited to, financial
statements, details of accounts receivable and accounts payable,
income tax returns, owner-officer compensation records, collateral
details, cash-flow analysis, orders, contracts, financing commitments
and agreements, and other documents that would disclose specific
names or addresses of customers and suppliers, potential customers
and suppliers, or agency and consultant reports analyzing the
financial data.
   (2) Any loan guarantee review by the Renewable Energy Loan
Guarantee Committee.  For this purpose, the committee or a
subcommittee of the committee may review and approve loan guarantee
requests by means of a telephone conference, or in a meeting not open
to the public.
   15355.  There is hereby created in the State Treasury the
Renewable Energy Loan Loss Reserve Fund.  Notwithstanding Section
13340, all money in the fund is continuously appropriated without
regard to fiscal years for the support of the agency and shall be
available for expenditure for the purposes stated in this article.
The fund shall be available for the receipt of federal, state, and
local moneys, and private donations.
   15356.  (a) The agency shall determine the percentage of the
reserve in the Renewable Energy Loan Loss Reserve Fund required to
secure loan guarantees made by the committee.  However, in no event
shall the reserve be less than 25 percent of the fund.
   (b) The minimum amount that the agency may guarantee for any
renewable energy system is twenty-five thousand dollars ($25,000) and
the maximum amount is two million dollars ($2,000,000).  The agency
may elect to lower or raise the minimum or maximum amount if a change
is found to be in the best interest of the state.
   (c) The term of the guaranteed loan shall not exceed the useful
life of the renewable energy system or 15 years, whichever is
shorter.
   (d) The amount guaranteed shall not exceed 80 percent of a loan,
or an amount equal to the anticipated proportion of renewable fuel
usage to fuel the renewable energy system, as authorized by paragraph
(2) of subdivision (d) of Section 15351, whichever is less.
   15357.  The agency shall adopt criteria and procedures for the
implementation of this article.  The criteria and procedures shall be
exempt from the requirements of Chapter 3.5 (commencing with Section
11340) of Part 1.  The criteria and procedures shall include
provisions for determining the maximum guarantee amount, leverage,
percentage guaranteed, guarantee term, and other conditions of a
guarantee.  In developing the criteria and procedures for the
program, the agency may consult with other state agencies, including
the State Energy Resources Conservation and Development Commission.
A consultation and public comment period shall begin on the effective
date of this article, and shall end 30 days thereafter.  
Notwithstanding the 120-day limit specified in subdivision (e) of
Section 11346.1, the regulations shall be repealed 180 days after
their effective date, unless the department complies with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2,
as provided in subdivision (e) of Section 11346.1. 
   15358.  (a) The agency shall execute guarantees supported solely
by funds in the Renewable Energy Loan Loss Reserve Fund.
   (b) No guarantee shall be approved unless the eligible business
agrees that all electricity generated by the project will be made
available within California  at just and reasonable rates
  on a long-term contract basis  , except that
electricity may be made available outside California upon approval by
the Public Utilities Commission.
   15359.  (a) The agency shall establish a reasonable schedule of
administrative fees, not to exceed 2 percent of the guarantee amount,
which shall be paid by the eligible business to reimburse the state
for the costs of administering this article, including promotion and
outreach.
                                                                 (b)
The agency may expend earnings on the deposits from, or up to 5
percent of, the Renewable Energy Loan Loss Reserve Fund for
administrative expenses, for the respective fiscal year including
promotion and outreach, in carrying out this chapter.
   15360.  The agency may contract with any state or other agency,
persons, or firms to enable the agency to properly perform the duties
of this article.
   15361.  The state shall not be liable or obligated in any way
beyond the money that is allocated to the Renewable Energy Loan Loss
Reserve Fund as a result of any loan guarantee under this article.
   15362.  The agency, with the approval of the Director of Finance,
may request the Treasurer to invest the money in the Renewable Energy
Loan Loss Reserve Fund.  Returns from these investments shall be
deposited in the fund and shall be used to support this article.
   15362.5.  Because of the need to immediately increase the
availability of renewable energy sources, it is necessary to
implement this article without delay.  Therefore, from the effective
date of this article, and for a period of 18 months thereafter,
Section 10295 and Article 4 (commencing with Section 10335) of
Chapter 2 of Part 2 of Division 2 of the Public Contract Code shall
not apply to contracts entered into pursuant to this article.  Any
contract that is entered into during that 18-month period shall be
awarded based upon the receipt of at least three bids, and the award
shall be based on a combination of the expertise of the bidder, the
bid price, and the probability that the services offered will meet
the needs of the program.
  SEC. 4.  Chapter 4 (commencing with Section 14420) is added to
Division 12 of the Public Resources Code, to read:

      CHAPTER 4.  MOBILE EFFICIENCY BRIGADE

   14420.  This chapter shall be known and may be cited as the Mobile
Efficiency Brigade.
   14421.  The Legislature finds and declares all of the following:
   (a) California is in the midst of a dramatic energy crisis that
calls for both an increase in supply and a significant long-term
reduction in demand.
   (b) Conservation programs require a large mobilization effort
across the state, within a short timeframe, in order to affect peak
demand anticipated for the summer of 2001 and the subsequent winter.

   (c) California's low-income households and small businesses
require upgrading, modification, and conservation investment in order
to assist them in contributing to a reduction in demand that is
required statewide.
   (d) Current state programs can work in conjunction with
community-based organizations to significantly penetrate communities
and rapidly implement programs aimed at conservation and demand
reduction.
   (e) The state currently has programs operated and administered by
the Department of Community Services and Development and the
California Conservation Corps, working in conjunction with and
through community-based organizations, that can be expanded to assist
in the statewide conservation effort initiated through pending
programs.
   (f) To the maximum extent feasible, the expenditure of funds
appropriated pursuant to this chapter should be prioritized based
upon immediate benefits in peak energy demand reduction and more
efficient use of energy.
   14422.  As used in this chapter:
   (a) "Community-based organization" means a nonprofit corporation
that is exempt from income taxation under Section 501(c)(3) of the
Internal Revenue Code of 1986.
   (b) "Program" means either of the following:
   (1) The Energy Conservation Act of 2001 (Chapter 5.3 (commencing
with Section 25425) of Division 15).
   (2) Energy Conservation Loans to Shopping Centers (Chapter 4.7
(commencing with Section 25370) of Division 15).
   (c) "Energy efficient appliance or measure" means anything that
meets the federal Energy Star efficiency standards  , as defined
by federal law,  or is 15 percent more efficient than the state
or federal energy-efficiency standards.
   (d) "Installation" means all labor needed to install energy
efficient equipment, including any necessary construction.
   (e) "Low-income household," in the context of the implementation
of a specific program, shall be defined as each program specifies.
Outside of a specific program, it means households at or below
 ____   175  percent of the federal poverty
level.
   (f) "Small business," in the context of the implementation of a
specific program, shall be defined as each program specifies.
Outside of a specific program, it means a licensed business that
employs not more than 100 persons.
   14423.  Notwithstanding any other provision of law, the California
Conservation Corps and the Department of Community Services and
Development shall expand their current weatherization,
energy-efficiency, and rehabilitation programs and assist in the
implementation of pending programs as defined in Section 14422, in
accordance with the following objectives:
   (a) Determine the specifics of program expansion and focus on
energy efficiency measures including, but not limited to, energy
audits, weatherization including the insulation of doors, windows,
walls and ceilings, light bulb replacement with subcompact
flourescent lights, installation of water-saving devices and heater
exchanges, minor repairs and retrofits, appliance removal and
replacement, and tree planting.
   (b) Identify neighborhoods and areas with dense populations that
can be easily served in large numbers.
   (c) Establish qualifications and priorities consistent with the
objectives of this chapter for making grants and working with
community-based organizations.
   (d) Establish guidelines for broad geographic distribution across
the state, taking into consideration the factors of population
density, community need, and seasonal climate conditions.
   (e) Establish procedures and policies as may be necessary for the
administration of this chapter.
   14424.  Any contracts entered into pursuant to this chapter by a
state agency are exempt from the following requirements of the
Government Code and the Public Contract Code:
   (a) Services contracts and consulting services contracts are
exempt from Article 4 (commencing with Section 10335) of Chapter 2 of
Part 2 of Division 2 of the Public Contract Code.
   (b) All contracts are exempt from Section 10295 of the Public
Contract Code, relating to approval from the Department of General
Services.
   (c) All contracts are exempt from Chapter 6 (commencing with
Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government
Code, relating to advertising.
  14425.  This chapter shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.  
  SEC. 5.  Chapter 4.7 (commencing with Section 25370) is added to
Division 15 of the Public Resources Code, to read:

      CHAPTER 4.7.  ENERGY CONSERVATION LOANS TO SHOPPING CENTERS

   25370.  The Legislature finds and declares that the use of
automatic indoor lighting systems and other energy conservation
measures in shopping centers will reduce energy usage without
negatively impacting customer experience.
   25370.5.  (a) "Allocation" means a loan of funds by the commission
pursuant to the procedures specified in this chapter.
   (b) "Eligible energy conservation project" means an energy
conservation measure, as defined in subdivision (f) of Section 25411
or an energy conservation project, as defined in subdivision (g) of
Section 25411, that has been determined as appropriate for the
shopping center by an energy audit performed pursuant to Section
25371.
   (c) "Shopping center," for purposes of this chapter, means a group
of two or more retail stores that use common parking facilities or
that open to an enclosed common area or a retail store that is at
least 1,500 square feet.
   25371.  (a) An electrical corporation, as defined in Section 218
of the Public Utilities Code, or a local publicly owned electric
utility, as defined in subdivision (d) of Section 9604 of the Public
Utilities Code, shall perform an energy audit for the owner of a
shopping center upon the request of the shopping center.
   (b) Electrical corporations and local publicly owned electric
utilities shall perform outreach to inform shopping centers and
retail businesses within a shopping center of the availability of
energy audits pursuant to subdivision (a).
   25372.  (a) Any owner of a shopping center or a retail business
within a shopping center may submit an application to the commission
for an allocation for the purpose of financing all, or a portion of,
the costs incurred in implementing an eligible energy conservation
project.  The application shall be in a form and shall contain
information that the commission prescribes.
   (b) The commission may make a loan pursuant to this chapter to a
shopping center or a retail business within a shopping center for the
purpose of financing all, or a portion of, the costs incurred in
implementing an eligible energy conservation project.
   (c) (1) The commission shall establish procedures for applications
and disbursements of allocations.
   (2) The commission shall establish procedures for repayment of
allocations on the basis of the estimated life cycle of the eligible
energy conservation project.
   (3) The commission may establish qualifications and priorities,
consistent with the objectives of this chapter, for making
allocations.
   (4) The commission may establish any procedure or policy necessary
for the administration of this chapter.
   (5) The commission shall perform outreach to inform shopping
centers and retail businesses within a shopping center of the
availability of loans pursuant to subdivision (b).
   (6) The commission shall limit eligibility for loans made pursuant
to subdivision (b) to energy conservation projects that will be
implemented no later than October 31, 2001.
   (d) Notwithstanding any other provision of law, the commission
shall periodically set interest rates on the loans based on surveys
of existing financial markets and at rates not lower than the Pooled
Money Investment Account.
   25372.5.  (a) An allocation made pursuant to this chapter shall be
used for the purposes specified in the approved application.
   (b) If the commission determines that an allocation has been
expended for purposes other than those specified in an approved
application, it shall immediately request the return of the full
amount of the allocation.  The shopping center or retail business
within a shopping center shall immediately comply with this request.

   25373.  (a) The Energy Conservation Loans to Shopping Centers
Account is hereby established in the General Fund.  Notwithstanding
Section 13340 of the Government Code, the account is continuously
appropriated to the commission without regard to fiscal year.
   (b) The money in the account shall consist of all money authorized
or required to be deposited in the account by the Legislature and
all money received by the commission pursuant to repayment of the
allocations under this chapter.
   (c) The money in the account shall be disbursed by the Controller
for the purposes of this chapter as authorized by the commission.
   (d) The funds received from repayment of allocations shall be
deposited in the account and may be expended by the commission for
the purposes of providing allocations pursuant to this chapter;
provided, however, that after October 31, 2001, the funds received
from the repayment of allocations under this chapter shall be
deposited in the General Fund.
   (e) The commission may annually spend an amount, not to exceed 5
percent of the amount annually deposited in, or transferred to, the
account to pay for the actual administrative costs incurred by the
commission pursuant to this chapter.
   (f) Notwithstanding any other provision of law, any funds in the
account that are not encumbered by October 31, 2001, shall be
transferred to the General Fund.
  SEC. 6.   
  SEC. 5.   Chapter 5.3 (commencing with Section 25425) is added
to Division 15 of the Public Resources Code, to read:

      CHAPTER 5.3.  ENERGY CONSERVATION ACT OF 2001
      Article 1.  General Provisions

   25425.  This chapter shall be known, and may be cited, as the
Energy Conservation Act of 2001.
   25426.  As used in this article, the following terms have the
following meanings:
   (a) "Commercial refrigeration" means a refrigerator that is not a
federally regulated consumer product.
   (b) "Energy-efficient model" means an appliance that meets federal
Energy Star specifications set forth in ____.
   (c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.

      Article 2.  Loans and Grants for Construction and Retrofit
Projects

   25433.  It is the intent of the Legislature to establish
incentives in the form of grants and loans to low-income residents,
small businesses, and residential property owners for constructing
and retrofitting buildings to be more energy efficient by using
design elements, including, but not limited to, energy-efficient
siding, insulation, and double-paned windows.
   25433.5.  (a) In consultation with the Public Utilities
Commission, the commission shall do both of the following for the
purpose of full or partial funding of an eligible construction or
retrofit project:
   (1) Establish a grant program to provide financial assistance to
eligible low-income individuals.
   (2) Establish a 2-percent interest per annum loan program to
provide financial assistance to a small business owner, residential
property owner, or individual who is not eligible for a grant
pursuant to paragraph (1), and whose gross annual income does not
exceed one hundred thousand dollars ($100,000).
   (b) (1) The commission shall use the design guidelines adopted
pursuant to Section 25495 as standards to determine eligible
energy-efficiency projects.
   (2) The award of a grant pursuant to this section is subject to
appeal to the commission upon a showing that the commission applied
factors, other than those adopted by the commission, in making the
award.
   (3) The grant or loan recipient shall commit to using the grant or
loan for the purpose for which the grant or loan was awarded.
   (4) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including satisfying
conditions specified by the commission, does not constitute the
rendering of goods, services, or a direct benefit to the commission.
   (5) The amount of any grant awarded pursuant to this article to a
low-income individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received.
   25434.  The commission may contract with one or more business
entities capable of supplying or providing goods or services
necessary for the commission to carry out the responsibilities for
the programs conducted pursuant to this article, and shall contract
with one or more business entities to evaluate the effectiveness of
the programs implemented pursuant to subdivision (a) of Section
25433.5.  The commission may select an entity on a sole source basis
for one or both of those purposes if the cost to the state will be
reasonable and the commission determines that it is in the best
interest of the state.
   25435.  As used in this article, the following terms have the
following meanings:
   (a) "Eligible construction or retrofit project" means a project
for making improvements to a home or building in existence on the
effective date of the act adding this section, through an addition,
alteration, or repair, which effectively increases the energy
efficiency or reduces the energy consumption of the home or building
as specified by the commission's guidelines under Section 25495.  The
improvements shall be deemed to be cost-effective.
   (b) "Low income" means an individual with a gross annual income
equal to or less than 200 percent of the federal poverty level.
   (c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.

      Article 3.  Small Business Energy Efficient Refrigeration Loan
Program

   25435.  The commission shall administer the Small Business Energy
Efficient Refrigeration Loan Program, as provided for in Section
25436.
   25436.  (a) Within 45 days of the effective date of this chapter,
the commission shall implement a Small Business Energy Efficient
Refrigeration Loan Program for qualifying small businesses to
purchase and install energy efficient refrigeration equipment.
   (b) The program shall offer loans at 3 percent interest on terms
that will ensure the small business owner will repay the loan over
time, out of the cash flow savings resulting from lower energy bills.

   (c) The commission may enter into agreements with lending
institutions and qualifying vendors to facilitate making and
administering loans.  Any loan made by the commission for the
purchase of equipment shall be secured against the equipment
purchased.
   (d) The commission shall adopt regulations establishing procedures
for loan applications that will expedite the loan process and
accelerate the installation of energy efficient refrigeration
equipment.  
  SEC. 7.  Chapter 5.35 (commencing with Section 25437) is added to
Division 15 of the Public Resources Code, to read:

      CHAPTER 5.35.  ENERGY EFFICIENCY ASSISTANCE TO LOCAL
GOVERNMENTS

   25437.  The Legislature finds and declares that there is a
pressing need for focused state funding of local government
investments in energy efficiency.  Current loan, grant, and utility
programs do not provide adequate assistance to cities, counties, or
special districts, including school districts.  In light of the
problems with energy supply and the potential for permanent energy
reductions in city, county, and special district facilities, it is
the intent of the Legislature to establish a program to fund
appropriate energy efficiency projects.
   25437.1.  (a) The commission shall administer the grant program
specified in subdivision (b).
   (b) The commission may award grants to a city, county, or special
district, including a school district, to fund energy efficiency and
conservation projects in facilities owned by those entities.
   (c) The grants specified in subdivision (b) shall provide up to 50
percent of the cost of energy efficiency and conservation projects.

   (d) For purposes of this section, "energy efficiency and
conservation projects" means an energy conservation measure, as
defined in subdivision (f) of Section 25411, or an energy
conservation project, as defined in subdivision (g) of Section 25411.

   25437.2.  The commission shall adopt guidelines for the
administration of this chapter.  Notwithstanding any other provision
of law, the guidelines adopted under this section are not regulations
subject to the requirements of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.
   25437.3.  (a) To ensure that the commission is able to implement
the program established by this chapter in the most expeditious
manner and at the least cost to the state, all of the following shall
apply to the award of grants under this chapter:
   (1) Grant awards may be made directly to grantees to implement a
project.
   (2) Grant awards may be made to a grantee that proposes to
implement its program with a group of related or similar projects.
   (3) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including, but not
limited to, satisfying conditions specified by the commission, does
not constitute the rendering of goods, services, or a direct benefit
to the commission.
   (b) Grants may fund administrative expenses incurred by the
grantee in administering the grant.
   25437.4.  To ensure that the grantee is able to award contracts
for energy efficiency and conservation projects in the most
expeditious manner and at the least cost to the grantee under this
chapter, all of the following shall apply to the award of those
contracts:
   (a) The grantee may solicit applications for contracts using a
competitive bid or sole source method.
   (b) The grantee may award sole source contracts if the cost to the
grantee is reasonable and the grantee determines that it is in the
grantee's best interest.
   (c) The grantee may award sole source contracts by choosing from
among one or more parties capable of supplying or providing goods or
services that meet a specified need of the grantee.
   (d) The grantee may solicit multiple applications for a sole
source contract in order to evaluate the expertise of applicants and
select contracts that will best meet the needs of the grantee.
   (e) The grantee may contract for technical or administrative
services support.
   25437.5.  (a) The commission shall contract on a sole source basis
with one or more parties for the evaluation of the effectiveness of
this chapter and Chapter 5.2 (commencing with Section 25410).
   (b) Any contract executed by the commission pursuant to
subdivision (a) is exempt from the following statutes, and any and
all laws, regulations, policies, standard terms and conditions, and
certifications related to these statutes are hereby expressly waived:

   (1) Article 4 (commencing with Section 10335) of Chapter 2 of Part
2 of Division 2 of the Public Contract Code.
   (2) Section 10295 of the Public Contract Code, relating to
approval from the Department of General Services.
   (3) Chapter 6 (commencing with Section 14825) of Part 5.5 of
Division 3 of Title 2 of the Government Code, relating to
advertising.
   (c) The commission may delegate, to either the executive director
of the commission or a committee of the commission, approval of
grants or contracts that do not exceed an amount established by the
commission.  Grants or contracts greater than that amount shall be
approved by the commission.
   25437.8.  The commission shall report to the Legislature on or
before June 29, 2001, and quarterly thereafter, until grant funds
have been expended, regarding the progress of the grant program
established by this chapter.
  SEC. 8.   
  SEC. 6.   Section 26003 of the Public Resources Code is
amended to read:
   26003.  As used in this division, unless the context otherwise
requires:
   (a) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
   (b) "Cost" as applied to a project or portion thereof financed
under this division means all or any part of the cost of construction
and acquisition of all lands, structures, real or personal property
or an interest therein, rights, rights-of-way, franchises, 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 those
buildings or structures may be moved; the cost of all machinery,
equipment, and furnishings, financing charges, interest prior to,
during, and for a period after, completion of construction as
determined by the authority; provisions for working capital; reserves
for principal and interest and for extensions, enlargements,
additions, replacements, renovations, and improvements; the cost of
architectural, engineering, financial, accounting, auditing and legal
services, plans, specifications, estimates, administrative expenses,
and other expenses necessary or incident to determining the
feasibility of constructing any project or incident to the
construction, acquisition, or financing of any project.
   (c) (1) "Alternative sources" means the application of
cogeneration technology, as defined in Section 25134; the
conservation of energy; or the use of solar, biomass, wind,
geothermal, hydroelectricity under 30 megawatts, or any other source
of energy, the efficient use of which will reduce the use of fossil
and nuclear fuels.
   (2) "Alternative sources" does not include any hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
   (d) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution reduction, and
transportation efficiency.  Those technologies may include, but are
not limited to, any of the following:
                                                               (1)
Intelligent vehicle highway systems.
   (2) Advanced telecommunications for transportation.
   (3) Command, control, and communications for public transit
vehicles and systems.
   (4) Electric vehicles and ultra-low emission vehicles.
   (5) High-speed rail and magnetic levitation passenger systems.
   (6) Fuel cells.
   (e) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
   (1)  Loans, loan loss reserves, interest rate reductions, proceeds
of bonds issued by the authority, insurance, guarantees or other
credit enhancements or liquidity facilities, contributions of money,
property, labor, or other items of value, or any combination thereof,
as determined by, and approved by the resolution of, the board.
   (2) The issuance of authority bonds or the bonds of a special
purpose trust used to fund the cost of a project or program for which
a participating party is directly or indirectly liable, including,
but not limited to, any of the following:
   (A) Bonds for which the security is provided in whole or in part
pursuant to the powers granted by this division.
   (B) Bonds for which the authority has provided a guarantee or
enhancement.
   (C) Any other type of assistance the authority determines is
appropriate.
   (f) "Participating party" means either of the following:
   (1) Any person or any entity or group of entities engaged in
business or operations in the state, whether organized for profit or
not for profit, that applies for financial assistance from the
authority for the purpose of implementing a project in a manner
prescribed by the authority.
   (2) Any public agency or nonprofit corporation that applies for
financial assistance from the authority for the purpose of
implementing a project in a manner prescribed by the authority.
   (g) "Project" means any land, building, improvement thereto,
rehabilitation, work, property, or structure, real or personal,
stationary or mobile, including, but not limited to, machinery and
equipment, whether or not in existence or under construction, that
utilizes, or is designed to utilize, an alternative source, or that
is utilized for the design, technology transfer, manufacture,
production, assembly, distribution, or service of advanced
transportation technologies.
   (h) "Public agency" means any federal or state agency, board, or
commission, or any county, city and county, city, regional agency,
public district, or other political subdivision.
   (i) (1) "Renewable energy" means any device or technology that
conserves or produces heat, processes heat, space heating, water
heating, steam, space cooling, refrigeration, mechanical energy,
electricity, or energy in any form convertible to these uses, that
does not expend or use conventional energy fuels, and that uses any
of the following electrical generation technologies:
   (A) Biomass.
   (B) Solar thermal.
   (C) Photovoltaic.
   (D) Wind.
   (E) Geothermal.
   (2) For purposes of this subdivision, "conventional energy fuel"
means any fuel derived from petroleum deposits, including, but not
limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas, or nuclear fissionable materials.
   (3) Notwithstanding paragraph (1), "renewable energy" also means
ultra-low emission equipment for energy generation based on thermal
energy systems such as natural gas turbines.
   (j) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from the sale, lease, or other disposition of alternative source or
advanced transportation technology facilities, or the making of loans
to finance alternative source or advanced transportation technology
facilities, and any income or revenue derived from the investment of
any money in any fund or account of the authority.   
  SEC. 9.   
  SEC. 7.   Section 26011.5 of the Public Resources Code is
amended to read:
   26011.5.  The authority shall establish criteria for the selection
of projects to receive financing assistance from the authority.  In
the selection of projects, the authority shall, in accordance with
the legislative intent, provide financial assistance under this
division in a manner consistent with sound financial practice.  In
developing project selection criteria, the authority shall consider,
but not be limited to, all of the following:
   (a) The technological feasibility of the projects.
   (b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
   (c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
   (d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
   (e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.   
  SEC. 10.   
  SEC. 8.   Section 26011.6 is added to the Public Resources
Code, to read:
   26011.6.  (a) The authority shall establish a renewable energy
loan program to provide 3 percent per annum loans to public power
entities, independent generators, utilities, or businesses
manufacturing components or systems, or both, to generate new and
renewable energy sources, develop clean and efficient distributed
generation, and demonstrate the economic feasibility of new
technologies, such as solar, photovoltaic, wind, and ultra-low
emission equipment.  The authority shall give preference to
utility-scale projects that can be rapidly deployed to provide a
significant contribution as a renewable energy supply.
   (b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Sections 26011.5 and 26011.7 as
emergency regulations in accordance with Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code.  For purposes of that Chapter 3.5, 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.  Notwithstanding the 120-day limitation
specified in subdivision (e) of Section 11346.1 of the Government
Code, the regulations shall be repealed 180 days after their
effective date, unless the authority complies with Sections 11346.2
to 11347.3, inclusive, as provided in subdivision (e) of Section
11346.1 of the Government Code.
   (c) The authority shall consult with the State Energy Resources
Conservation and Development Commission regarding the financing of
projects to avoid duplication of other renewable energy projects.

   (d) The authority shall report the results of its program to the
Legislature on or before March 1, 2002, and annually thereafter.
  SEC. 11.   
   (d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
  SEC. 9.   Section 739 of the Public Utilities Code is amended
to read:
   739.  (a) The commission shall designate a baseline quantity of
gas and electricity which is necessary to supply a significant
portion of the reasonable energy needs of the average residential
customer.  In estimating those quantities, the commission shall take
into account differentials in energy needs between customers whose
residential energy needs are currently supplied by electricity alone
or by both electricity and gas.  The commission shall develop a
separate baseline quantity for all-electric residential customers.
For these purposes, "all-electric residential customers" are
residential customers having electrical service only or whose space
heating is provided by electricity, or both.  The commission shall
also take into account differentials in energy use by climatic zone
and season.
   (b) (1) The commission shall establish a standard limited
allowance which shall be in addition to the baseline quantity of gas
and electricity for residential customers dependent on life-support
equipment, including, but not limited to, emphysema and pulmonary
patients.  A residential customer dependent on life-support equipment
shall be given a higher energy allocation than the average
residential customer.
   (2) "Life-support equipment" means that equipment which utilizes
mechanical or artificial means to sustain, restore, or supplant a
vital function, or mechanical equipment which is relied upon for
mobility both within and outside of buildings.  "Life-support
equipment," as used in this subdivision, includes all of the
following:  all types of respirators, iron lungs, hemodialysis
machines, suction machines, electric nerve stimulators, pressure pads
and pumps, aerosol tents, electrostatic and ultrasonic nebulizers,
compressors, IPPB machines, and motorized wheelchairs.
   (3) The limited additional allowance shall also be made available
to paraplegic and quadriplegic persons in consideration of the
increased heating and cooling needs of those persons.
   (4) The limited additional allowance shall also be made available
to multiple sclerosis patients in consideration of the increased
heating and cooling needs of those persons.
   (5) The limited additional allowance shall also be made available
to scleroderma patients in consideration of the increased heating
needs of those persons.
   (6) The limited allowance shall also be made available to persons
who are being treated for a life-threatening illness or have a
compromised immune system, provided that a licensed physician and
surgeon or a person licensed pursuant to the Osteopathic Initiative
Act certifies in writing to the utility that the additional heating
or cooling allowance, or both, made available pursuant to this
subdivision is medically necessary to sustain the life of the person
or prevent deterioration of the person's medical condition.
   (c) (1) The commission shall require that every electrical and gas
corporation file a schedule of rates and charges providing baseline
rates.  The baseline rates shall apply to the first or lowest block
of an increasing block rate structure which shall be the baseline
quantity.  In establishing these rates, the commission shall avoid
excessive rate increases for residential customers, and shall
establish an appropriate gradual differential between the rates for
the respective blocks of usage  for gas rates  .
   (2) In establishing residential electric and gas rates, including
baseline rates, the commission shall assure that the rates are
sufficient to enable the electrical corporation or gas corporation to
recover a just and reasonable amount of revenue from residential
customers as a class, while observing the principle that electricity
and gas services are necessities, for which a low affordable rate is
desirable and while observing the principle that conservation is
desirable in order to maintain an affordable bill.  
   (3) Notwithstanding any other provision of law, the commission
shall require each electrical corporation to establish a three-tier,
increasing block rate structure for residential electric customers at
the earliest practicable date.  The second-tier rate shall apply to
usage between the baseline quantity and an amount equal to at least
twice the baseline quantity. The commission may establish the amount
of usage subject to the second-tier rate at more than twice the
baseline quantity in certain climate zones in order to assure that
approximately the same percentage of customer usage in each climate
zone is subject to the third-tier rate.  The implementation of the
three-tier rate structure is not intended to impact the allocation of
costs among the various customer classes.
   (4) The commission shall ensure that after implementing the
charges required by this section, residential consumption up to 130
percent of the baseline quantity is protected from any bill increases
consistent with the terms of Section 80110 of the Water Code.  The
commission may reduce the baseline rate in order to achieve this
objective.
   (5)  
   (3)  At least until December 31, 2003, the commission shall
require that all charges for residential electric customers are
volumetric, and shall prohibit any electrical corporation from
imposing any charges on residential consumption that are independent
of consumption, unless those charges are in place prior to the
effective date of the act that added this paragraph.
   (d) As used in this section:
   (1) "Baseline quantity" means a quantity of electricity or gas for
residential customers to be established by the commission based on
from 50 to 60 percent of average residential consumption of these
commodities, except that, for residential gas customers and for
all-electric residential customers, the baseline quantity shall be
established at from 60 to 70 percent of average residential
consumption during the winter heating season.  In establishing the
baseline quantities, the commission shall take into account climatic
and seasonal variations in consumption and the availability of gas
service.  The commission shall review and revise baseline quantities
as average consumption patterns change in order to maintain these
ratios.
   (2) "Residential customer" means those customers receiving
electrical or gas service pursuant to a domestic rate schedule and
excludes industrial, commercial, and every other category of
customer.
   (e) Wholesale electrical or gas purchases, and the rates charged
therefor, are exempt from this section.
   (f) Nothing contained in this section shall be construed to
prohibit experimentation with alternative gas or electrical rate
schedules for the purpose of achieving energy conservation.

  SEC. 12.   
  SEC. 10.   Section 739.10 is added to the Public Utilities
Code, to read:  
   739.10.  The commission shall, upon its own motion, or upon the
application of an electrical corporation, make, on a periodic basis,
for residential customers, adjustments that are necessary to
eliminate any linkage between the recovery of an electrical
corporation's authorized revenues and its electrical sales.
  SEC. 13.  Section 739.11 is added to the Public Utilities Code, to
read:
   739.11.  (a) For nonresidential customers whose usage is above 100
kilowatts, but do not currently have time-of-use meters in place,
the commission shall undertake any necessary measures to allow for
the replacement of those nonresidential meters with time-of-use
meters.
   (b) Nonresidential customers on time-of-use meters are subject to
a time-of-use rate schedule.
   (c) Time-of-use meters identified as having received compliant
commission certification are the only meters considered eligible for
purposes of this section consist of those certified products found on
the commission website which are permitted pursuant to commission
Decision No. 98-12-008.
  SEC. 14.   
   739.10.  The commission shall, until December 31, 2002, ensure
that errors in estimates of demand elasticity or sales do not result
in material over or undercollections of the electrical corporations.

   739.11.  (a) For purposes of this section, "real time metering"
means a system for measuring a customer's usage of electricity on at
least an hourly basis, variably pricing that electricity based on the
cost of acquisition or production, and regularly providing and
updating that usage and pricing information to the customer.
   (b) The commission shall conduct a pilot study of real time
metering for nonresidential customers.  The purpose of the study is
to determine the effectiveness of real time metering in reducing
energy demand and overall energy consumption, to examine customer
response, to determine how real time metering should be implemented,
and to determine whether more widespread use of real time metering is
in the public interest.  The study shall not duplicate the study
required pursuant to Section 393 of the Public Utilities Code.  The
study shall include rates that vary as the cost of electricity varies
and provide appropriate telemetry and other equipment.  The study
shall include agricultural, large commercial, and industrial customer
classes, and may include other customer classes if the commission
determines that to do so would be in the public interest.  The
commission shall report to the Legislature on the results of the
study by June 30, 2002.
  SEC. 11.   Section 2827 of the Public Utilities Code is
amended to read:
   2827.  (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage substantial private investment in renewable energy
resources, stimulate in-state economic growth, reduce demand for
electricity during peak consumption periods, help stabilize
California's energy supply infrastructure, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
   (b) As used in this section, the following definitions apply:
   (1) "Electric service provider" means an electrical corporation,
as defined in Section 218, a local publicly owned electric utility,
as defined in Section 9604, or an electrical cooperative, as defined
in Section 2776, or any other entity that offers electrical service
   (2) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electric
service provider, who uses a solar or a wind turbine electrical
generating facility, or a hybrid system of both, with a capacity of
not more than one megawatt that is located on the customer's owned,
leased, or rented premises, is interconnected and operates in
parallel with the electric grid, and is intended primarily to offset
part or all of the customer's own electrical requirements.
   (3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e).  Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions.  An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes.  If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions.  If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter.  An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
   (c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request.
   (2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not provide distribution service for the direct
transactions, the  electric corporation, as defined in
Section 218,   service provider  that provides
distribution service for an eligible customer-generator is not
obligated to provide net energy metering to the customer.
   (3) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier, and the customer is an eligible customer-generator, the
 electrical corporation, as defined in Section 218, 
 service provider  that provides distribution service for
the direct transactions may recover from the customer's electric
service provider the incremental costs of metering and billing
service related to net energy metering in an amount set by the
commission.
   (d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator  except that eligible
customer-generators shall not be assessed standby charges on the
electrical generating capacity or the kilowatthour production of an
eligible solar or wind electrical generating facility, unless the
commission adopts charges pursuant to paragraph (4) of subdivision
(g).  The charges   .  The charges  for all retail
rate components for eligible customer-generators shall be based
exclusively on the customer-generator's net kilowatthour consumption
over a 12-month period, without regard to the customer-generator's
choice of electric service provider.  Any new or additional demand
charge, standby charge, customer charge, minimum monthly charge,
interconnection charge, or other charge that would increase an
eligible customer-generator's costs beyond those of other customers
in the rate class to which the eligible customer-generator would
otherwise be assigned are contrary to the intent of this legislation,
and shall not form a part of net energy metering contracts or
tariffs.
   (e)  For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period.  The following rules shall apply to the annualized
net metering calculation:
   (1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electric service provider, and at
each anniversary date thereafter, be billed for electricity used
during that period.  The electric service provider shall determine if
the eligible residential or small commercial customer-generator was
a net consumer or a net producer of electricity during that period.
   (2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible residential or small
commercial customer-generator during that same period, the eligible
residential or small commercial customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period.  The compensation owed for the
eligible residential or small commercial customer-generator's
consumption shall be calculated as follows:
   (A) For all eligible customer-generators taking service under
tariffs employing "baseline" and "over baseline" rates, any net
monthly consumption of electricity shall be calculated according to
the terms of the contract or tariff to which the same customer would
be assigned to or be eligible for if the customer was not an eligible
customer-generator.  If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
   (B) For all eligible customer-generators taking service under
tariffs employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator.  When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period.  If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
   (C) For all residential and small commercial customer-generators
and for each monthly period, the net balance of moneys owed to the
electric service provider for net consumption of electricity or
credits owed to the customer-generator for net generation of
electricity shall be carried forward until the end of each 12-month
period.  For all commercial, industrial, and agricultural
customer-generators the net balance of moneys owed shall be paid in
accordance with the electric service provider's normal billing cycle
 , except that if the commercial, industrial, or agricultural
customer-generator is a net electricity producer over a normal
billing cycle, any excess kilowatthours generated during the
                                   billing cycle shall be carried
over to the following billing period, valued according to the
procedures set forth in this section, and appear as a credit on the
customer-generator's account, until the end of the annual period when
paragraph (3) of subdivision (e) shall apply  .
   (3) At the end of each 12-month period, where the electricity
generated by the eligible  residential or small commercial
 customer-generator during the 12-month period exceeds the
electricity supplied by the electric service provider during that
same period, the eligible  residential or small commercial
 customer-generator is a net electricity producer and the
electric service provider shall retain any excess kilowatthours
generated during the prior  residential or small commercial
 12-month period.  The eligible  residential or
small commercial  customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
   (4) The electric service provider shall provide every eligible
residential or small commercial customer-generator with net
electricity consumption information with each regular bill.  That
information shall include the current monetary balance owed the
electric service provider for net electricity consumed since the last
12-month period ended. Notwithstanding subdivision (e), an electric
service provider shall permit that customer to pay monthly for net
energy consumed.
   (5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric service provider, the electric service provider shall
reconcile the eligible customer-generator's consumption and
production of electricity during any part of a 12-month period
following the last reconciliation, according to the requirements set
forth in this subdivision, except that those requirements shall apply
only to the months since the most recent 12-month bill.
   (6) If an electric service provider providing net metering to a
residential or small commercial customer-generator ceases providing
that electrical service to that customer during any 12-month period,
and the customer-generator enters into a new net metering contract or
tariff with a new electric service provider, the 12-month period,
with respect to that new electric service provider, shall commence on
the date on which the new electric service provider first supplies
electric service to the customer-generator.
   (f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability.  A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.

   (g) The commission shall do all of the following:
   (1) Track standby and interconnection costs that otherwise would
be assessed to consumers with eligible net metering of greater than
10 kilowatts of nameplate capacity.
   (2) Track system and local benefits provided by eligible net
metered end-use consumers.
   (3) Determine which benefits conveyed by eligible net metered
consumers are feasible to track or to estimate, and how to do so.
   (4) By June 1, 2003, adopt standby charges that accurately reflect
the reasonable costs and benefits conveyed by solar or wind
self-generation.  
   (g) This section shall remain in effect only until June 1, 2002,
and as of that date is repealed, unless a later enacted statute, that
is enacted before June 1, 2002, deletes or extends that date.
  SEC. 12.  Section 2827 is added to the Public Utilities Code, to
read:
   2827.  (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage private investment in renewable energy resources,
stimulate in-state economic growth, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
   (b) As used in this section, the following definitions apply:
   (1) "Electric service provider" means an electric corporation, as
defined in Section 218, a local publicly owned electric utility, as
defined in Section 9604, or an electrical cooperative, as defined in
Section 2776. "Electric service provider" also means an entity that
offers electrical service to residential and small commercial
customers, as defined in Section 394, if that entity offers net
energy metering.  Any entity that offers net energy metering to
residential and small commercial customers shall comply with this
section.
   (2) "Eligible customer-generator" means a residential customer, or
a small commercial customer as defined in subdivision (h) of Section
331, of an electric service provider, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than 10 kilowatts that is located on the
customer's premises, is interconnected and operates in parallel with
the electric grid, and is intended primarily to offset part or all of
the customer's own electrical requirements.
   (3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e).  Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions.  An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes.  If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions.  If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter.  An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
   (4) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the utility.
   (c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
equals one-tenth of 1 percent of the electric service provider's
aggregate customer peak demand.
   (2) On an annual basis, beginning in 1999, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area.  For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering.  The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area.
   (3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators equals one-tenth of 1 percent of the
aggregate customer peak demand of those electric service providers.
   (4) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not offer net energy metering and is therefore not
an electric service provider, the customer is not an eligible
customer-generator and the electric corporation, as defined in
Section 218, that provides distribution service for the direct
transactions, is not obligated to provide net energy metering to the
customer.
   (5) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that offers net energy metering and is therefore an electric
service provider, and the customer is an eligible
customer-generator, the electric corporation, as defined in Section
218, that provides distribution service for the direct transactions
may recover from the customer's electric service provider the
incremental costs of metering and billing service related to net
energy metering in an amount set by the commission.
   (d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator.  The charges for all retail rate
components for eligible customer-generators shall be based
exclusively on the customer-generator's net kilowatthour consumption
over a 12-month period, without regard to the customer-generator's
choice of electric service provider that offers net energy metering
and is subject to this section pursuant to paragraph (1) of
subdivision (b), in accordance with subdivision (e).  Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible customer-generator's costs beyond those of other
customers in the rate class to which the eligible customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
contracts or tariffs.
   (e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period.  The following rules shall apply to the annualized net
metering calculation:
   (1) The eligible customer-generator shall, at the end of each
12-month period following the date of final interconnection of the
eligible customer-generator's system with an electric service
provider, and at each anniversary date thereafter, be billed for
electricity used during that period.  The electric service provider
shall determine if the eligible customer-generator was a net consumer
or a net producer of electricity during that period.
   (2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible customer-generator during
that same period, the eligible customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period.  The compensation owed for the
eligible customer-generator's net 12-month kilowatthour consumption
shall be calculated as follows:
   (A) For eligible customer-generators taking service under tariffs
employing "baseline" and "over baseline" rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned to or be eligible for if the customer was not an eligible
customer-generator.  If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
   (B) For eligible customer-generators taking service under tariffs
employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator.  When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period.  If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
   (C) For all customer-generators and for each monthly period, the
net balance of moneys owed to the electric service provider for net
consumption of electricity or credits owed to the customer-generator
for net generation of electricity shall be carried forward until the
end of each 12-month period.
   (3)  At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period.  The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
   (4)  The electric service provider shall provide every eligible
customer-generator with net electricity consumption information with
each regular bill.  That information shall include the current
monetary balance owed the electric service provider for net
electricity consumed since the last 12-month period ended.
Notwithstanding subdivision (e), an electric service provider shall
permit that customer to pay monthly for net energy consumed.
   (5) If an eligible customer-generator terminates the customer
relationship with the electric service provider, the electric service
provider shall reconcile the eligible customer-generator's
consumption and production of electricity during any part of a
12-month period following the last reconciliation, according to the
requirements set forth in this subdivision, except that those
requirements shall apply only to the months since the most recent
12-month bill.
   (6) If an electric service provider providing net metering to a
customer-generator ceases providing that electrical service to that
customer during any 12-month period, and the customer-generator
enters into a new net metering contract or tariff with a new electric
service provider, the 12-month period, with respect to that new
electric service provider, shall commence on the date on which the
new electric service provider first supplies electric service to the
customer-generator.
   (f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability.  A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.
   (g) This section shall become operative on June 1, 2002. 

  SEC. 15.   
  SEC. 13.   No reimbursement is required by this act pursuant
to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

   However, notwithstanding Section 17610 of the Government Code, 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.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.

  SEC. 16.   
  SEC. 14.   The sum of four hundred five million one hundred
fifty thousand dollars ($405,150,000) is hereby appropriated or
reappropriated to the Controller from the following sources:
   (a) Twenty-five million one hundred fifty thousand dollars
($25,150,000) from the Proposition 98 Reversion Account,
reappropriated on a one-time basis from the Proposition 98 Reversion
Account from moneys appropriated in the 2000-01 fiscal year to
community colleges.
   (b) Three hundred eighty million dollars ($380,000,000) from the
General Fund.
   (c) The moneys reappropriated from the Proposition 98 Reversion
Account shall be allocated to the Chancellor of the California
Community Colleges who shall allocate those funds as follows:
   (1) Twenty-three million dollars ($23,000,000) to be expended for
the purposes of implementing Article 2 (commencing with Section
81610) of Chapter 3 of Part 49 of Division 7 of Title 3 of the
Education Code.  The Chancellor shall allocate the funds in this
paragraph to all community college districts statewide in an amount
equivalent to a district's share of the total gross square footage of
all permanent structures reported on the system's October 2000 Space
Inventory Report.  Notwithstanding any other provision of law, due
to the urgent need to realize the necessary energy savings by the
summer of 2001 these funds shall be made available to the districts
within one week of the effective date of this act.  Any funds
allocated pursuant to this paragraph that are unencumbered by October
30, 2001, shall revert to the General Fund on that date.
   (2) Two million dollars ($2,000,000)  in the form of a zero
interest loan repayable over a reasonable period of time  for a
community college district to construct a sustainable green
instructional building. The projected energy systems for this
building shall reduce its demand on primary energy sources to a level
of 40 to 50 percent below the current Title 24 (Version 98) of the
California Code of Regulations including building energy design
performance and onsite power generation and or the equivalent level
in future versions of Title 24.  A minimum of ten million dollars
($10,000,000) of the total project costs shall be derived from
nonstate resources.  Preliminary plans for this building shall be
completed, and working drawings approved, by the State Architect
before the end of the 2001-02 fiscal year.
   (3) One hundred fifty thousand dollars ($150,000) as a grant to
the Community College League of California to provide a statewide
database of community college district utility usage for immediate
application.  The data base shall be accessible to the Chancellor's
Office of the California Community Colleges as well as to all
community college districts statewide to assist in conservation,
facilities planning and energy management.  The data base shall track
the usage of electricity and natural gas, and may track the usage of
water, sewer and other utilities.  The data base shall further
provide an ongoing audit of utility billings to check for billing
errors and to ensure that districts recover potential billings that
exceed cost of actual usage.
   (d) The moneys appropriated from the General Fund shall be
allocated as follows:
   (1) The sum of forty million dollars ($40,000,000) shall be
deposited in the Renewable Energy Loan Loss Reserve Fund.
   (2) (A) The sum of forty million dollars ($40,000,000) shall be
allocated to the California Conservation Corps for costs associated
with the purchase, distribution, and installation of subcompact
fluorescent lights  , other energy savings measures,  and
water-saving devices.  It is the intent of the Legislature that the
California Conservation Corps complete the distribution of the
purchased materials by August 31, 2001.
   (B) The California Conservation Corps, in implementing the
provisions of subparagraph (A), shall consult with the Department of
Community Services and Development, and shall provide for broad
geographic distribution of the purchased materials throughout the
state, identify neighborhoods and areas with dense populations that
can easily be served in large numbers, and take into account
community need.
   (C) The California Conservation Corps shall report to the
Legislature on or before October 31, 2001, on the use of the funds
allocated pursuant to this paragraph, the cost-effectiveness of the
activities, and the number of homes and businesses reached.  

   (3) The sum of twenty-five million dollars ($25,000,000) shall be
deposited in the Energy Conservation Loans to Shopping Centers
Account, for expenditure by the State Energy Resources Conservation
and Development Commission for the purposes of outreach and the
allocation of loans pursuant to Chapter 4.7 (commencing with Section
25370) of Division 15 of the Public Resources Code.
   (4) The sum of one hundred and fifty million dollars
($150,000,000) shall be allocated to the State Energy Resources
 
   (3) The sum of one hundred fifty-four million five hundred
thousand dollars ($154,500,000) shall be allocated to the State
Energy Resources  Conservation and Development Commission for
allocation in accordance with the following schedule:
   (A) Fifty million dollars ($50,000,000) shall be expended in
accordance with Article 2 (commencing with Section 25433) of Chapter
5.3 of Division 15 of the Public Resources Code, for a loan or a
grant for an eligible construction or retrofit project.
   (B) Fifty million dollars ($50,000,000) shall be expended 
pursuant to a voluntary program to purchase time-of-use meters for
nonresidential customers who do not have time-of-use
                              meters that distinguish and measure
peak and off-peak energy use and whose usage is greater than 100
kilowatts.  Any funds remaining after purchasing time-of-use meters
for nonresidential customers whose usage is greater than 100
kilowatts shall be made available to purchase time-of-use meters for
nonresidential customers who do not have time-of-use meters and whose
usage is 100 kilowatts, or less.  The Public Utilities Commission
shall undertake any necessary measures to ensure the replacement of
the nonresidential meters with time-of-use meters that distinguish
and measure peak and off-peak energy use within a reasonable but
short-period of time.  Notwithstanding any other provision of law,
the Public Utilities Commission shall allocate the funds in this
subparagraph with priority being based on the eligible customers with
the highest kilowatt usage.  The Public Utilities Commission shall
establish a time-of-use rate schedule to which nonresidential
customers on time-of-use meters will be subject.   for
electric metering programs.  Twenty-five million dollars
($25,000,000) shall be used to provide time-of-use meters for
customers whose usage is greater than 200 kilowatt.  Twenty-five
million dollars ($25,000,000) shall be provided to the Public
Utilities Commission to fund the program described in Section 739.11
of the Public Utilities Code. 
   (C) Fifty million dollars ($50,000,000) shall be expended for the
Small Business Energy Efficient Refrigeration Loan Program provided
for in Section 25436 of the Public Resources Code.  
   (5) The sum of fifty million dollars ($50,000,000) shall be
allocated as follows:
   (A) Twenty-five million dollars ($25,000,000) shall be deposited
in  
   (4) (A) The sum of fifty million dollars ($50,000,000) shall be
allocated to  the State Energy Conservation Assistance Account
created by Section 25416 of the Public Resources Code for expenditure
by the State Energy Resources Conservation and Development
Commission to provide loans  and grants, as determined by the
commission,  pursuant to Chapter  5.2  
5.35  (commencing with Section 25410) of Division 15 of the
Public Resources Code.  
   (B) Twenty-five million dollars ($25,000,000) shall be allocated
to the State Energy Resources Conservation and Development Commission
to provide grants consistent with the purposes of Chapter 5.2
(commencing with Section 25410) of Division 15 of the Public
Resources Code.
   (C) The State Energy Resources Conservation and Development
Commission shall deem any applicant determined to be eligible for a
loan from the funds provided in subparagraph (A) to be eligible for a
grant from the funds provided in subparagraph (B).  The amount of
the grant awarded to any applicant shall equal 50 percent of the
approved loan amount.  The actual amount of the loan provided to any
applicant shall be reduced by an amount equal to the grant amount.
   (D)  
   (B)  In allocating the funds pursuant to this paragraph, the
State Energy Resources Conservation and Development Commission shall
give priority to applications for energy conservation projects or
energy conservation measures that can be completed before September
1, 2001.  
   (6)  
   (5) The sum of four million five hundred thousand dollars
($4,500,000) is hereby appropriated from the General Fund to the
State Energy Resources Conservation and Development Commission
(Energy Commission) for expenditure to complete the Southeast Geysers
Effluent Injection System (SEGIS), Phase 2 Project of the Basin 2000
Project in Lake County.  This appropriation is to enable Basin 2000
to come online in December 2001, to produce an additional 10
megawatts (MW) of geothermal power, which it and the Northern
California Power Agency, the sole partner with the Lake County
Sanitation District, commit to selling to the state at their cost to
help with California's electricity crisis.
   (6)  The sum of twenty-five million dollars ($25,000,000)
shall be allocated to the California Alternative Energy and Advanced
Transportation Financing Authority for the purpose of implementing
Section 26011.6 of the Public Resources Code.
   (7) (A) The State Energy Resources Conservation and Development
Commission shall expand programs to promote clean distributed
generation technologies neither owned nor controlled by electrical
corporations. Pursuant to subparagraphs (B) and (C), the incentives
that the commission shall develop pursuant to this section shall
address existing barriers to the increased use of these technologies,
including, but not limited to, incentives to help reduce the initial
system purchase price, develop low-cost financing mechanisms, offset
interconnection fees charged by electrical corporations, and
streamline the utility interconnection process by reducing
administrative delay.
   (B) The sum of thirty million dollars ($30,000,000) shall be
deposited in the Emerging Renewable Resources Account in the
Renewable Resource Trust Fund established pursuant to Section 445 of
the Public Utilities Code.  Notwithstanding Section 13340 of the
Government Code, the money deposited in the Emerging Renewable
Resources Account by this subparagraph is hereby continuously
appropriated to the State Energy Resources Conservation and
Development Commission, without regard to fiscal year, for the
purposes specified in subparagraph (C).
   (C) The money allocated pursuant this  paragraph  may be expended
by the commission only for the following purposes:
   (i) Twenty-two million dollars ($22,000,000) for  an
increase in the rebate amount   rebates  available
for small distributed emerging technologies that are eligible for
funding pursuant to subdivision (d) of Section 383.5 of the Public
Utilities Code that have a peak generating capacity of 10 kilowatts
or less.  The commission shall determine the maximum rebate level for
small systems to be awarded pursuant to this clause.  Within the
maximum rebate level, the commission may provide for different rebate
levels, such as higher rebate levels for systems installed and
operational within a specified timeframe, or for targeted end-use
customers that need additional financial support, such as for public
schools and state and local governmental facilities.
   (ii) Eight million dollars ($8,000,000) for rebates for small
distributed emerging technologies that are eligible for funding
pursuant to subdivision (d) of Section 383.5 of the Public Utilities
Code that have a peak generating capacity of 10 kilowatts or less and
that are located at a customer site receiving distribution service
from a local publicly owned electric utility, as defined in Section
9604 of the Public Utilities Code.  The commission shall determine
the maximum rebate level for small systems to be awarded pursuant to
this clause.  Within the maximum rebate level, the commission may
provide for different rebate levels, such as higher rebate levels for
systems installed and operational within a specified timeframe, or
for targeted end-use customers that need additional financial
support, such as for public schools and state and local governmental
facilities.  
   (iii) The commission shall ensure that projects eligible for
rebates pursuant to clauses (i) and (ii) shall not also receive
rebates from similar programs adopted by the Public Utilities
Commission. 
   (D) Notwithstanding subdivision (d) of Section 383.5 of the Public
Utilities Code, the commission may increase the maximum rebate
levels for distributed emerging technologies eligible for funding
under subdivision (d) of Section 383.5 of the Public Utilities Code
that have a peak generating capacity greater than 10 kilowatts, if
the commission determines that an increase is appropriate to further
stimulate the installation of emerging renewable technologies in
general or for targeted end-use customers that need additional
financial support, such as public schools and state and local
governmental facilities.  The maximum incentive levels established by
the commission may vary based on system size and type of end-use
consumer.
   (E) For purposes of this paragraph, "commission" means the State
Energy Resources Conservation and Development Commission.  
   (8) (A) The sum of twenty million dollars ($20,000,000) shall be
allocated to the Department of Community Services and Development for
low-income weatherization programs.  These funds represent an amount
equal to the allocation of federal funds to California for the
Low-Income Home Energy Assistance Program (LIHEAP) and the Department
of Energy Low-Income Weatherization Assistance Program (DOE-LIWAP)
for the 2001 federal fiscal year.
   (B) Notwithstanding any other provision of law, moneys allocated
pursuant to subparagraph (A) may be allocated to community-based
organizations approved either by the federal government or by the
Department of Community Services and Development.
  SEC. 18.   
  SEC. 15.   This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to prevent rolling blackouts, and the shortage of
electrical generating capacity in the state that endangers the
health, welfare, and safety of the people of this state, it is
necessary that this act take effect immediately.