BILL NUMBER: SBX1 5	AMENDED
	BILL TEXT

	AMENDED IN SENATE  FEBRUARY 5, 2001

INTRODUCED BY   Senators Sher  , Bowen,  and Burton
    (Principal coauthor:  Senator Chesbro) 
    (Coauthors:  Senators Alarcon, Figueroa, Karnette, Murray,
Polanco, Scott, Soto, and Torlakson) 
    (Coauthors:  Assembly Members Aroner, Keeley, Pavley,
Strom-Martin, and Thomson) 

                        JANUARY 17, 2001

   An act  to add and repeal Chapter 3.5 (commencing with Section
4240) of Division 5 of Title 1 of the Government Code, 
relating to public utilities, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 5, as amended, Sher.  Public  utilities  
energy projects  . 
   Existing  
   (1) Existing law authorizes state and local agencies to develop
energy conservation, cogeneration, and alternate energy supply
sources at the facilities of public agencies through contracts and
leases in accordance with specified criteria.
   This bill, until January 1, 2004, would authorize these public
agencies to establish projects, in whole or in part, for the purchase
or installation, or both, of alternate energy equipment,
cogeneration equipment, conservation measures, or environmentally
preferable distributed energy generation equipment or facilities
located on property owned or leased by the public agencies subject to
certain criteria, and to enter into contracts for these purposes
subject to certain criteria.  The bill would authorize the Director
of General Services to exempt state energy projects from the
advertising and competitive bidding requirements set forth in state
law, if the director deems it necessary to implement these
provisions.  The bill would exempt state energy projects from a
specified capital outlay process at the discretion of the Department
of Finance.
   (2) Existing  law provides for the establishment and
implementation of various energy efficiency programs administered by
the State Energy Resources Conservation and Development Commission
and the Public Utilities Commission.
   This bill would  , until January 1, 2005,  appropriate
 $934,010,000   $1,269,700,000  from the
General Fund to implement energy efficiency programs and supplement
existing energy efficiency programs.  Of that amount, 
$248,010,000   $478,800,000  would be allocated to
the State Energy Resources Conservation and Development Commission
 and $686,000,000   $519,400,000  would be
allocated to the Public Utilities Commission  , $10,000,000 would
be allocated to the Department of Consumer Affairs, $100,000,000
would be allocated to the Department of General Services, $41,500,000
would be allocated to the Department of Corrections, and
$120,000,000 would be allocated to the Department of Community
Services and Development  to fund various energy efficiency
programs, as scheduled  , and subject to reallocation and
conditions. Under the bill any funds that are unencumbered or
unexpended by January 1, 2005, would revert to the General Fund on
that date  .   
   The bill 
   (3) This  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:  no.


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


  SECTION 1.  The Legislature finds and declares as follows:
   (a)  California is currently experiencing an energy crisis which
threatens to adversely affect the economic and environmental
well-being of the state.
   (b) One of the most cost-effective, efficient, and environmentally
beneficial methods of meeting the state's energy needs is to
encourage the efficient use of energy.
   (c) The purpose of the act adding this section is to ensure the
immediate implementation of energy efficiency programs in order to
reduce consumption of energy and to assist in reducing the costs
associated with energy demand.  
  SEC. 2.  The sum of nine hundred thirty four million ten thousand
dollars ($934,010,000) is hereby appropriated from the General Fund
to the Controller for allocation according to the following schedule:

   (a) Two hundred forty eight million ten thousand dollars
($248,010,000) to the State Energy Resources Conservation and
Development Commission, to be allocated for the following purposes:
   (1) Twenty million dollars ($20,000,000) to implement the programs
established pursuant to Section 25555 of the Public Resources Code
in order to achieve a minimum of an additional 57 megawatts reduction
in peak electricity demand.
   (2) Forty million dollars ($40,000,000) to implement a distributed
generation incentives program to achieve a 75 megawatt reduction in
peak electricity demand.
   (3) Ten million dollars ($10,000,000) to implement a demand
reduction program for small commercial sector electricity customers
to achieve a forty megawatt reduction in peak electricity demand.
For the purposes of this paragraph, "small commercial sector
electricity customer" means a commercial electric utility customer
that uses less than 20 kilowatts.
   (4) Ten million dollars ($10,000,000) to implement an agriculture
and irrigation district demand reduction program to achieve a 50
megawatt reduction in peak electricity demand through actions such as
the replacement of inefficient irrigation pumps and the shifting of
electricity consumption activities to off-peak hours.
   (5) Thirteen million dollars ($13,000,000) to achieve a 60
megawatt reduction in peak electricity demand through the
implementation of programs to improve demand responsiveness in
heating, ventilation, air conditioning, and lighting, and through
advanced metering of energy usage.  Funds appropriated pursuant to
this paragraph may be used to implement paragraphs (1) and (2) of
subdivision (a) of Section 25555 of the Public Resources Code.
   (6) Fifty million dollars ($50,000,000) to achieve a 150 megawatt
reduction in peak electricity demand through the implementation of a
low-energy usage building materials program in schools, colleges and
universities, and other nonresidential buildings.
   (7) Ten million dollars ($10,000,000) to achieve an additional 10
megawatts reduction in peak electricity demand through additional
implementation of subparagraph (E) of paragraph (2) of subdivision
(a) of Section 25555 of the Public Resources Code.
   (8) Fifty million dollars ($50,000,000) to achieve a 120 megawatt
reduction in peak electricity demand through the implementation of an
incentive program for water and waste water peak usage reduction.
   (9) Three million dollars ($3,000,000) to achieve a 15 megawatt
reduction in peak electricity demand through the implementation of a
load management program in state buildings and facilities.
   (10) Forty million dollars ($40,000,000) to achieve a 100 megawatt
reduction in peak electricity demand through innovative programs and
proposals ineligible for funding pursuant to Section 25555 of the
Public Resources Code.
   (11) One million four hundred thousand dollars ($1,400,000) to
fund 16 personnel years in the State Energy Resources Conservation
and Development Commission to implement subdivision (a) of this
section.
   (12) Six hundred and ten thousand dollars ($610,000) for four
personnel years to improve the ability of the State Energy Resources
Conservation and Development Commission to provide timely and
accurate assessments of electricity and natural gas markets.
   (b) Six hundred eighty six million dollars ($686,000,000) to the
Public Utilities Commission to be allocated for the following
purposes:
   (1) Sixty million dollars ($60,000,000) to increase and extend
CARE discounts to low-income persons not currently eligible for the
CARE program.
   (2) Sixty million dollars ($60,000,000) to augment funding for
low-income weatherization programs to assist in reducing energy costs
to low-income persons.
   (3) Fifty million dollars ($50,000,000) to achieve a 125 megawatt
reduction in peak electricity demand through a program which
encourages the purchase of high-efficiency air conditioning equipment
in residential homes.
   (4) Twenty five million dollars ($25,000,000) to achieve a 60
megawatt reduction in peak electricity demand through incentives to
stock and purchase high efficiency appliances.
   (5) Ten million dollars ($10,000,000) to achieve a 30 megawatt
reduction in peak electricity demand through incentives to better
size water and waste water pumps.
   (6) Eight million dollars ($8,000,000) to achieve a 40 megawatt
reduction in peak electricity demand through the provision of
incentives to residential homeowners to install whole-house fans.
   (7) Fifteen million dollars ($15,000,000) to achieve a 20 megawatt
reduction in peak electricity demand through a program to provide
education to commercial building managers on measures to reduce load
during periods of peak demand.
   (8) Ten million dollars ($10,000,000) to achieve a five megawatt
reduction in peak electricity demand through thermal energy storage
in the business and commercial sector.
   (9) Twenty million dollars ($20,000,000) to achieve a peak demand
reduction of 20 megawatts through high-efficiency pumping projects
with large motor and pump loads.
   (10) Twenty eight million dollars ($28,000,000) to achieve a 40
megawatt peak electricity demand reduction through the installation
of connected thermostats for heating, ventilation, and air
conditioning control in the commercial sector.
   (11) Forty million dollars ($40,000,000) to achieve an 11 megawatt
peak electricity demand reduction through the provision of
incentives to residential and small business customers for small
renewable systems incentives by financing up to 45 percent of the
installed cost of primarily solar small distributed generation
systems.
   (12) Sixty million dollars ($60,000,000) to achieve a 16.8
megawatt peak electricity demand reduction through the provision of
incentives for new and emerging distributed generation technologies
such as microturbines and fuel cells, as well as higher incentives
for renewable and clean technologies (PVs, wind) and incentives for
cogeneration, by paying up to a maximum of 50 percent of installed
cost of renewable systems or 30 percent of nonrenewable systems.
   (13) Eighty million dollars ($80,000,000) to achieve a 11.2
megawatt peak electricity demand reduction through acceleration of
self-generation for state and municipal buildings through expansion
of existing programs to add capacity by installing environmentally
friendly self generation systems for state and municipal buildings.
   (14) Twenty five million dollars ($25,000,000) to achieve a 83.3
megawatt peak electricity demand reduction through the provision of
incentives to builders to sell high performance homes that exceed
building efficiency standards by at least 30 percent.
   (15) Thirty million dollars ($30,000,000) to achieve a 100
megawatt peak electricity demand reduction through augmentation of
existing CEC initiatives to include installation of demand responsive
technologies, as well as energy efficient retrofits or municipal
buildings.
   (16) Fifteen million dollars ($15,000,000) to achieve a 37.5
megawatt peak electricity demand reduction through encouraging the
manufacture of more efficient mobile housing stock.
   (17) Thirty million ($30,000,000) to achieve a 100 megawatt peak
electricity demand reduction through offering energy efficient design
assistance at the point of permitting for construction and
remodeling.
   (18) Sixty million dollars ($60,000,000) to achieve a six megawatt
peak electricity demand reduction through augmentation of
weatherization programs for low-income utility customers.
   (19) Sixty million ($60,000,000) to extend the CARE discount to
consumers whose income is below 200 percent of the federal poverty
line and to increase the discount from 15 percent to 25 percent of
the utility bill.
   (c) This section  
  SEC. 2.  Chapter 3.5 (commencing with Section 4240) is added to
Division 5 of Title 1 of the Government Code, to read:

      CHAPTER 3.5.  PUBLIC ENERGY PROJECTS

   4240.  The Legislature finds and declares that there is an energy
crisis in the State of California.  To assist in energy conservation
and efficiency, energy generation, and peak demand reduction
capacity, it is the intent of the Legislature to expedite the
acquisition of materials, goods, and services necessary to produce
solutions to the current energy shortages facing the state, thereby
preventing or mitigating an emergency situation.  The Legislature
further declares that the energy crisis threatens to disrupt the
economy of our state, impair the delivery of critical public
services, and endanger persons and property.  It is the intent of the
Legislature to permit public agencies to develop energy
conservation, efficiency, cogeneration, and alternate energy supply
sources on public property in accordance with this chapter in the
most expedient manner possible.
   4241.  To implement the intent set forth in Section 4240, a public
agency may use the methods set forth in this chapter to establish
energy projects.
   4242.  As used in this chapter and Section 3 of the act adding
this chapter, the following terms have the following meanings:
   (a) "Alternate energy equipment" means equipment for the
production or conversion of energy from alternate sources as its
primary fuel source, solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, remote natural gas of less than
one billion cubic feet estimated reserves per mile from an existing
gas gathering line, natural gas containing 850 or fewer British
Thermal Units per standard cubic foot, or any other source of energy,
the efficient use of which will reduce the use of fossil or nuclear
fuels.
   (b) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 218.5 of the Public Utilities Code.
   (c) "Conservation measures" means equipment, maintenance, load
management techniques and equipment, or other measures to reduce
energy use or make for a more efficient use of energy.
   (d) "Conservation services" means the electrical, thermal, or
other energy savings resulting from conservation measures, which
shall be treated as a supply source of that energy.
   (e) "Energy generation equipment" means equipment used to produce
electrical or thermal energy for use on the public property in which
it is located or for distribution or sale.
   (f) "Energy project" means a project, in whole or in part, for the
purchase or installation, or both, of alternate energy equipment,
cogeneration equipment, conservation measures, or environmentally
preferable distributed energy generation equipment or facilities
located on property owned or leased by public agencies.
   (g) "Environmentally preferable distributed energy generation"
means generation complying with environmental performance standards
adopted pursuant to Sections 41514.9 and 41514.10 of the Health and
Safety Code.
   (h) "Person" means, but is not limited to, any individual,
company, corporation, partnership, limited liability company, public
agency, association, proprietorship, trust, joint venture, or other
entity or group of entities.
   (i) "Public agency" means the state, a county, city and county,
city, district, community college district, school district, joint
powers authority or other entity designated or established by a
political subdivision relating to energy projects, and any other
political subdivision or public corporation in the state.
   (j) "Public property" includes any land, structure, building,
facility, or work that a public agency owns or leases, and any
easements or rights-of-way appurtenant thereto, or necessary for its
full use.
   4243.  In order to identify, acquire, design, implement, or
construct, or any combination of these, an energy project, a public
agency may enter into any contract, lease, or any other agreement
necessary to implement the project.  These projects are deemed to be
necessary to prevent or mitigate an emergency within the meaning of
Section 21080 of the Public Resources Code.  Notwithstanding any
other provision of law, the person performing these services may be
selected without advertising and competitive bidding and may use the
method of selection provided in this chapter.
   4244.  State energy projects may be implemented under this chapter
with the approval of the Director of General Services and the
Director of Finance and may be funded through any authorized
appropriation or other funding source.
   4245.  Prior to awarding or entering into a contract, agreement,
or lease, the public agency shall request proposals from qualified
persons. After evaluating the proposals, the public agency shall
award contracts based on qualifications, including the consideration
of such factors as the experience of the contractor, the type of
technology to be employed by the contractor on the energy project,
the cost to the agency, and any other relevant considerations.
Public agencies may also award contracts to persons 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.  For
purposes of this chapter, energy projects shall be exempt from
Chapter 10 (commencing with Section 4525).
   4246.  Notwithstanding Section 4245, the Director of General
Services may exempt a state energy project from the advertising and
competitive bidding requirements of this code and the Public Contract
Code, if the director deems it necessary to implement the purpose of
this chapter.
   4247.  At the discretion of the Department of Finance, state
energy projects may be exempted from the capital outlay process,
including, but not limited to, as provided in Section 13332.11.
   4248.  This chapter does not limit the authority of any public
agency to construct energy conservation projects or to enter into
other leases or contracts relating to the financing, design,
construction, operation, maintenance, or use of alternate energy type
facilities in any manner authorized under existing law.  This
chapter shall not be construed to abrogate Section 14671.6.
   4249.  Procedures established by the Department of General
Services for state energy projects to implement this chapter shall be
exempt from the rulemaking provisions of the Administrative
Procedures Act, (Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2).
   4250.  This chapter shall become inoperative on June 30, 2003,
and, as of January 1, 2004, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2004, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 3.  In order to achieve a total reduction in peak electricity
demand of not less than 2,585 megawatts, the sum of one billion two
hundred sixty-nine million seven hundred thousand dollars
($1,269,700,000) is hereby appropriated from the General Fund to the
Controller for allocation according to the following schedule:
   (a) In order to achieve a reduction in peak electricity demand of
315 megawatts and meet urgent needs of low-income households, five
hundred nineteen million four hundred thousand dollars ($519,400,000)
for allocation by the Public Utilities Commission for investor-owned
electric and natural gas utilities subject to commission
jurisdiction, to be expended in the following amounts for purposes
including, but not limited to, the following, based on guidelines
adopted by the Public Utilities Commission allowing reasonable
flexibility to shift funds among program categories to secure
cost-effective energy and peak savings:
   (1) Sixty-six million dollars ($66,000,000) to encourage the
purchase of high-efficiency heating, ventilating, and
air-conditioning (HVAC) equipment and appliances.
   (2) Five million eight hundred thousand dollars ($5,800,000) to
encourage the purchase of whole-house and indoor fans.
   (3) One hundred million dollars ($100,000,000) to increase and
expand CARE discounts to low-income persons not currently enrolled in
that program.
   (4) Twenty million dollars ($20,000,000) to augment funding for
low-income weatherization programs to assist in reducing energy costs
for low-income persons, in cooperation with community-based
organizations.
   (5) Twenty-eight million dollars ($28,000,000) to provide
incentives for construction of high-efficiency residences.
   (6) Twenty million dollars ($20,000,000) for high-efficiency pump
and motor retrofit for oil or gas, or both, producers and pipelines.

   (7) Twenty-nine million two hundred thousand dollars ($29,200,000)
to encourage the purchase of small, renewable electricity generation
systems and water delivery systems.
   (8) Fifty-eight million four hundred thousand dollars
($58,400,000) to encourage installation of environmentally preferable
distributed energy generation systems for state and municipal
buildings.
   (9) One hundred million dollars ($100,000,000) to provide
incentives to encourage replacement of low-efficiency lighting with
high-efficiency lighting in commercial and residential buildings.
   (10) Fifteen million dollars ($15,000,000) to encourage
installation of demand-responsive and energy-efficient technologies
in municipal buildings.
   (11) Thirty-two million dollars ($32,000,000) to provide
incentives for construction of high-efficiency nonresidential
buildings.
   (12) Forty-five million dollars ($45,000,000) to implement a
program to implement innovative load reduction measures.
   (b) In order to achieve a reduction in peak electricity demand of
1,000 megawatts, four hundred seventy-eight million eight hundred
thousand dollars ($478,800,000) to the State Energy Resources
Conservation and Development Commission (hereafter the Energy
Commission), to be expended in the following amounts for the
following purposes:
   (1) Sixty-eight million three hundred thousand dollars
($68,300,000) for allocation by the Energy Commission to locally
owned public utilities in the following amounts for the following
purposes:
   (A) Twenty million two hundred thousand dollars ($20,200,000) to
encourage the purchase of high-efficiency air-conditioning equipment
and appliances.
   (B) Two million two hundred thousand dollars ($2,200,000) to
encourage the purchase of whole-house and indoor fans.
   (C) Six million seven hundred thousand dollars ($6,700,000) to
provide incentives for construction of high-efficiency residences.
   (D) Ten million eight hundred thousand dollars ($10,800,000) to
encourage the purchase of small, renewable electricity generation
systems.
   (E) Twenty-one million six hundred thousand dollars ($21,600,000)
to encourage installation of environmentally preferable distributed
energy generation systems for state and municipal buildings.
   (F) Six million eight hundred thousand dollars ($6,800,000) to
provide incentives to encourage replacement of low-efficiency
lighting with high-efficiency lighting in commercial buildings.
   (2) Seventy million dollars ($70,000,000) to implement programs to
improve demand-responsiveness in heating, ventilation,
air-conditioning, lighting, advanced metering of energy usage, and
other systems in buildings.
   (3) Fifty million dollars ($50,000,000) to implement a low-energy
usage building materials program, and other measures to lower urban
air-conditioning usage in schools, colleges, universities, hospitals,
and other nonresidential buildings.
   (4) Fifteen million dollars ($15,000,000) to implement a program
for innovative peak demand reduction measures in the service areas of
public utilities.
   (5) Fifty million dollars ($50,000,000) to implement a program to
reduce peak load electricity usage for the agricultural sector.
   (6) Fourteen million five hundred thousand dollars ($14,500,000)
to provide incentives for installation of light-emitting diode (LED)
traffic signals.
   (7) Sixty-four millions dollars ($64,000,000) to provide
incentives for water and waste water treatment systems to reduce peak
usage.
   (8) Fifteen million dollars ($15,000,000) to encourage
installation of demand-responsive and energy-efficient technologies
in municipal buildings.
   (9) One hundred million dollars ($100,000,000) to provide
incentives for purchase of large renewable and environmentally
preferable distributed generation systems.
   (10) Three million dollars ($3,000,000) to assist local
governments in expediting the permitting of electricity generation
facilities.
   (11) Seven million dollars ($7,000,000) to implement a program to
teach school children about energy efficiency in the home and at
school.
   (12) Twenty million dollars ($20,000,000) to provide incentives
for retrofit of generation units at municipal water districts to
improve environmental performance.
   (13) One million four hundred thousand dollars ($1,400,000) to
fund 16 personnel years in the Energy Commission to implement
subdivision (a) of this section.
   (14) Six hundred thousand dollars ($600,000) for four personnel
years to improve the ability of the Energy Commission to provide
timely and accurate assessments of electricity and natural gas
markets.
   (c) In order to achieve a reduction in peak electricity demand of
1,000 megawatts, ten million dollars ($10,000,000) to the Department
of Consumer Affairs to implement a public awareness to reduce peak
electricity usage.
   (d) In order to achieve a reduction in peak electricity demand of
150 megawatts, one hundred million dollars ($100,000,000) to the
Department of General Services, to be expended in the following
amounts for the following purposes:
   (1) Fifty million dollars ($50,000,000) for programs to install
environmentally preferable distributed generation systems at state
buildings.
   (2) Fifty million dollars ($50,000,000) for programs to encourage
implementation of energy efficient programs in state buildings.
   (e) In order to achieve a reduction in peak electricity demand of
120 megawatts, forty-one million five hundred thousand dollars
($41,500,000) to the Department of Corrections, to be expended in the
following amounts for the following purposes:
   (1) Seventeen million five hundred thousand dollars ($17,500,000)
to install environmentally preferable distributed generation systems
at departmental facilities.
   (2) Twenty-four million dollars ($24,000,000) to install systems
to retrofit generation units to improve environmental performance of
existing electric generating units.
   (f) One hundred twenty million dollars ($120,000,000) to the
Department of Community Services and Development, to be expended in
the following amounts for the following purposes:

            (1) Sixty million dollars ($60,000,000) to provide a cash
assistance program for low-income persons.
   (2) Sixty million dollars ($60,000,000) to provide a low-income
energy weatherization program to assist in expanding energy
conservation efforts, thereby reducing energy costs to low-income
persons.
  SEC. 4.  (a) The Public Utilities Commission may modify the amounts
listed in subdivision (a) of Section 3 of the act adding this
section to reallocate funds among the programs included under that
subdivision, and may modify its megawatt savings goals for each
program, as it determines necessary to maximize electricity system
peak demand reduction.
   (b) (1) The State Energy Resources Conservation and Development
Commission (hereafter the Energy Commission) may modify the amounts
listed in subdivision (b) of Section 3 of the act adding this section
to reallocate funds among the programs included under that
subdivision, and may modify its megawatt savings goals for each
program, as it determines necessary to maximize electricity system
peak demand reduction.
   (2) The Energy Commission, in consultation with the Public
Utilities Commission, shall establish guidelines for the
administration of subdivision (b) of Section 3 of the act adding this
section.  The guidelines shall include, but shall not be limited to,
provisions that enable the Energy Commission to comply with
paragraph (1).  Notwithstanding any other provision of law, the
guidelines adopted under this subdivision 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.
   (c) In order to ensure that the Energy Commission is able to award
grants to implement the programs included under subdivision (b) of
Section 3 of the act adding this section, in the most expeditious
manner and at the least cost to the state, all of the following shall
apply to the awarding of those grants:
   (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 Energy Commission,
does not constitute the rendering of goods, services, or a direct
benefit to the Energy Commission.
   (4) Grants may fund allowed administrative expenses pursuant to
guidelines adopted by the Energy Commission under paragraph (2) of
subdivision (b).
   (d) In order to ensure that the Energy Commission is able to award
contracts to implement the programs included under subdivision (b)
of Section 3 of the act adding this section, in the most expeditious
manner and at the least cost to the state, all of the following shall
apply to the awarding of those contracts:
   (1) The Energy Commission may solicit applications for contracts
using a competitive bid or sole source method.
   (2) The Energy Commission may award sole source contracts if the
cost to the state is reasonable and the Energy Commission determines
that it is in the state's best interest.
   (3) The Energy Commission 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 Energy
Commission in carrying out the responsibilities imposed under this
section.
   (4) The Energy Commission 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 program.
   (5) The Energy Commission may contract for technical or
administrative services support.
   (6) The Energy Commission may enter into contracts to develop or
administer, or both, a portion of the program.  The Energy Commission
may delegate to a contractor its authority to implement a portion of
the program, including, without limitation, conducting a
solicitation using reasonable competitive bidding methods or the sole
source authority of this program for subcontracts or agreements, and
executing those agreements.  The contractor shall follow the
guidelines adopted by the Energy Commission under paragraph (2) of
subdivision (b).
   (e) The Energy Commission shall contract with one or more parties
for evaluation of the effectiveness of the programs implemented under
subdivision (b) of Section 3 of the act adding this section.  The
evaluation contract may be awarded on a sole source basis.
   (f) All contracts executed pursuant to this section are exempt
from the following statutes, and any and all law, regulations,
policies, standard terms and conditions, and certifications related
to these statutes are hereby expressly waived:
   (1) 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.
   (2) Consulting services contracts are exempt from Article 5
(commencing with Section 10359) of Chapter 2 of Part 2 of Division 2
of the Public Contract Code.
   (3) Architectural and engineering contracts are exempt from
Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of
the Government Code, and from  Sections 6106 and 6106.5 of the
Public Contract Code.
   (4) All contracts are exempt from Section 10295 of the Public
Contract Code, relating to approval from the Department of General
Services.
   (5) 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.
   (g) The exemptions authorized under subdivision (f) shall extend
to the contracts of contractors providing services to the Energy
Commission, if the contract is a subcontract or agreement that uses
program funds.
   (h) The Energy Commission may delegate, to either the Executive
Director of the Energy Commission or a committee of the Energy
Commission, approval of grants or contracts of not more than an
amount that shall be established by the Energy Commission.  Grants or
contracts above the established amount shall be approved by the
Energy Commission.
  SEC. 5.  Sections 3 and 4 of the act adding this section 
shall remain in effect only until January 1, 2005, and as of that
date is repealed unless a later enacted statute, that is enacted
before January 1, 2005, deletes or extends that date.   Any
funds appropriated pursuant to this section which are  
Any funds appropriated under Section 3 of the act adding this section
are  unencumbered or unexpended by January 1, 2005, shall
revert to the General Fund on that date.  
  SEC. 3.   
  SEC. 6.   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:
   Due to the shortage of electric generation capacity to meet the
needs of the people of this state and in order to limit further
impacts of this shortage on the public health, safety, and welfare,
it is necessary that this act take effect immediately.