BILL NUMBER: SBX1 5	AMENDED
	BILL TEXT

	AMENDED IN SENATE  FEBRUARY 20, 2001
	AMENDED IN SENATE  FEBRUARY 5, 2001

INTRODUCED BY   Senators Sher,  Alarcon,  Bowen, and Burton
   (Principal  coauthor:  Senator Chesbro)  
coauthors:  Senators Chesbro, Machado, and Perata) 
    (Principal coauthors:  Assembly Member Shelley) 
   (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 amend Section 15814.20 of, and  to add and
repeal Chapter 3.5 (commencing with Section 4240) of Division 5 of
Title 1 of  ,  the Government Code,  and to amend
Section 25402.5 of the Public Resources 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   State
 energy projects.
   (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   state  agencies to  establish
  implement energy related  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 prohibits the State Public Works Board from
entering into leases and energy service contracts sooner than 45 days
after notification to the Joint Legislative Budget Committee.
Existing law authorizes the joint committee to hold a hearing within
45 days of receipt of the notification.
   This bill would prohibit the board from entering into a lease and
energy services contract sooner than 15 days after notification and
would authorize the joint committee to hold a hearing within 15 days
of receipt of the notification.
   (3) Existing law requires the State Energy Resources Conservation
and Development Commission to adopt interior and exterior lighting
energy conservation standards, as specified.
   This bill would require the commission to adopt lighting standards
for outdoor lighting, as defined, that is not subject to the above
standards.  
   (2)  
   (4)  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 
$1,269,700,000   $1,026,500,000  from the General
Fund  and the State Highway Account in the State Transportation
Fund  to implement energy efficiency programs and supplement
existing energy efficiency programs.  Of that amount, 
$478,800,000   from the General Fund, $353,000,000 would
be allocated to the Public Utilities Commission, $404,500,000 
would be allocated to the State Energy Resources Conservation and
Development Commission  $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   $50,000,000  would be allocated to
the Department of General Services,  $41,500,000 
 $24,000,000  would be allocated to the Department of
Corrections,  $50,000,000 would be allocated for programs in
state buildings and community colleges upon approval of the
Department of Finance,  and $120,000,000 would be allocated to
the Department of Community Services and Development  and from
the State Highway Account in the State Transportation Fund,
$15,000,000 would be allocated to the Department of Transportation,
 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.  
   (3)  
   (5)  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.  
   (d) To the maximum extent feasible, the expenditure of funds
appropriated pursuant to this act shall be prioritized based upon
immediate benefits in peak energy demand reduction and more efficient
use of energy. 
  SEC. 2.   Section 15814.20 of the Government Code is amended to
read: 
   15814.20.  The board shall not enter into leases and energy
service contracts authorized under this chapter sooner than 
45   15  days after notification in writing of the
necessity therefor has been submitted to the Chairperson of the Joint
Legislative Budget Committee and the chairpersons of the fiscal
committees of each house, or sooner than whatever lesser time the
chairperson of the joint committee, or his or her designee, may in
each instance determine.  At the request of the chairperson of the
joint committee, the  Joint Legislative Budget Committee
  joint committee  may hold a hearing within
 45   15  days of receipt of the
notification.  If a hearing is held, the affected agencies shall be
provided all information available to the  Joint Legislative
Budget Committee   joint committee  at least 10
days in advance of the hearing.  In the event that a hearing is
conducted, the  Joint Legislative Budget Committee 
 joint committee  may recommend to the board approval,
modification, or rejection of leases or energy service contracts.

  SEC. 3.   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   STATE  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
 
   4240.  It is the intent of the  Legislature to permit
 public   state  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.   
   4241.  As used in this chapter, and as used in Section 3 of the
act adding this chapter, "state energy project" means either of the
following:
   (a) Equipment, load management techniques, and other measures or
services that reduce energy consumption and provide for more
efficient use of energy.
   (b) Clean renewable distributed generation equipment for use in
state buildings or facilities.
   4242.   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.  
   4243.   Prior to awarding or entering into a contract,
agreement, or lease, the  public   state 
agency shall request proposals from qualified persons. After
evaluating the proposals, the  public   state
 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   State  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.  
   4244.   Notwithstanding Section  4245  
4243  , 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   the exemption 
necessary to implement the purpose of this chapter  , to reduce
peak electricity demand, and to improve energy efficiency  .

   4247.  
   4245.   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.   
   4246.  The Department of General Services may adopt regulations
for purposes of this chapter as emergency regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2.  For purposes of Chapter 3.5, including, but
not limited to, Section 11349.6, the adoption of the regulations
shall be considered by the Office of Administrative Law to be
necessary for the immediate preservation of public peace, health,
safety, and general welfare.  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.
   4247.   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.   
  SEC. 4.  Section 25402.5 of the Public Resources Code is amended to
read: 
   25402.5.  (a) As used in this section, "lighting device" includes,
but is not limited to, a lamp, luminaire, light fixture, lighting
control, ballast, or any component of those devices.
   (b) (1) The commission shall consider both new and replacement,
and both interior and exterior, lighting devices as lighting which is
subject to subdivision (a) of Section 25402.
   (2) The commission shall include both indoor and outdoor lighting
devices as appliances to be considered in prescribing standards
pursuant to paragraph (1) of subdivision (c) of Section 25402.
   (3) The Legislature hereby finds and declares that paragraphs (1)
and (2) are declarative of existing law.
   (c) (1) The commission shall establish an advisory group to
provide technical advice, and, after public review, shall prepare and
submit a report to the Legislature on or before January 1, 1997,
identifying which lighting devices, whether indoor or outdoor, and
residential or commercial, may be appropriate either for the
commission to include in lighting efficiency regulations and other
state energy or lighting efficiency programs or for federal
government consideration in setting national lighting efficiency
standards.  The advisory group shall include, but not be limited to,
representatives of the Illuminating Engineering Society of North
America, the International Association of Lighting Designers, the
National Electrical Manufacturers Association, the Association of
Professional Energy Managers, the Lighting Research Institute, the
Electric Power Research Institute, the Natural Resources Defense
Council, the Department of Energy, the Environmental Protection
Agency, and California's electric utilities.  No state funds shall be
used to support the advisory group.
   (2) The commission's report and recommendations shall identify
proposed lighting efficiency regulations, standards, or programs that
are technologically feasible and cost-effective and that would
result in a significant level of energy savings.  The report shall
emphasize, but not be limited to, residential lighting efficiency,
and shall consider requiring manufacturers of light fixtures to
produce fixtures which are physically compatible with fluorescent
lamps.  The report shall also consider educational and labeling
programs that could help increase the use of efficient lighting
devices.
   (d) (1) To the extent not preempted by federal law, on or before
February 1, 1997, the commission shall initiate a formal rulemaking
proceeding, including public review and hearings, to consider
efficiency standards for lighting devices as recommended in the
report required by subdivision (c).  Any regulations issued pursuant
to this paragraph shall be subject to the requirements of paragraph
(1) of subdivision (c) of Section 25402.
   (2) The commission may also actively participate in proceedings of
the Department of Energy concerning the development and adoption of
national lighting efficiency standards as recommended in the report.

   (e) The commission shall adopt efficiency standards for outdoor
lighting.  The standards shall be technologically feasible and
cost-effective.   As used in this subdivision, "outdoor lighting"
refers to all electrical lighting that is exterior to buildings but
not subject to standards adopted pursuant to Section 25402, and
includes, but is not limited to, street lights, traffic lights,
parking lot lighting, and billboard lighting.   
  SEC. 5.   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)   one billion
twenty-six million five hundred thousand dollars ($1,026,500,000), of
which one billion eleven million five hundred thousand dollars
($1,011,500,000) is from the General Fund and fifteen million dollars
($15,000,000) is from the State Highway Account in the State
Transportation Fund,  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)   three hundred
fifty-three million dollars ($353,000,000) for allocation by the
Public Utilities Commission for  investor-owned electric and
natural gas utilities   electric and gas electrical
corporations  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:   amounts: 
   (1) Sixty-six million dollars ($66,000,000) to encourage the
purchase of  residential  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)  
   (2)  One hundred million dollars ($100,000,000) to 
increase and expand CARE discounts to low-income persons not
currently enrolled in that program.
   (4)   provide immediate assistance to electric and
gas utility customers enrolled in, or eligible to be enrolled in, the
California Alternative Rates for Energy (CARE) Program established
pursuant to Section 739.1 of the Public Utilities Code.  Funds
appropriated pursuant to this paragraph shall be expended to increase
and supplement CARE discounts for electric and gas utility bill
increases resulting from increased electric and gas rates incurred on
and after the effective date of this act.
   (3)  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)   for low income weatherization services provided
pursuant to Section 2790 of the Public Utilities Code, and other
energy efficient measures to assist low-income energy users.
   (4)  Twenty million dollars ($20,000,000) for high-efficiency
 and ultra low polluting  pump and motor  retrofit
  retrofits  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)  
   (5)  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)  
   (6)  Fifteen million dollars ($15,000,000) to encourage
installation of demand-responsive and energy-efficient technologies
in  municipal buildings   buildings owned and
operated by counties and cities  .  
   (11)  
   (7)  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
  , four hundred four million five hundred thousand
dollars ($404,500,000) 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)  
   (1) Twenty-seven million dollars ($27,000,000)  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  residential  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)  
   (B)  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)  
Sixty million dollars ($60,000,000)  to implement a program
 for   to encourage third parties to implement
 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 wastewater 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)   technologies in buildings owned and operated
by counties and cities.
   (9)  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)   
   (10) Twenty million dollars ($20,000,000) for incentives for the
retrofit of existing distributed generation owned and operated by
municipal water districts to replace diesel and natural gas
generation with cleaner technology that reduces oxides of nitrogen
emission to less than two parts per million.
   (11)  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)   .
   (12) Twenty-five million dollars (25,000,000) to provide loans to
schools pursuant to the Energy Conservation Assistance Act (Chapter
5.2 (commencing with Section 25410) of the Public Resources Code).
   (13)  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)  Funds appropriated pursuant to subdivisions (a) and (b)
shall be expended pursuant to guidelines adopted by each commission.
The guidelines shall be exempt from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of the Division 3 of Title
2 of the Government Code and shall do all of the following:
   (1) Establish cost-effectiveness criteria for programs funded.
   (2) Establish limitations on administrative overhead cost
associated with the programs that ensure that the maximum feasible
amount of funds are expended for direct and measurable energy
conservation, peak load reduction, and energy efficiency.
   (3) Allow reasonable flexibility to shift funds among program
categories in order to achieve the maximum feasible amount of energy
conservation, peak load reduction, and energy efficiency by the
earliest feasible date.
   (4) Establish matching fund criteria that, except for funds
appropriated pursuant to paragraphs (2) and (3) of subdivision (a),
ensure that entities eligible to receive funds appropriated pursuant
to subdivisions (a) and (b) pay an appropriate share of the cost of
acquiring or installing measures to achieve the maximum feasible
amount of energy conservation, peak load reduction, and energy
efficiency by the earliest feasible date.
   (5) Establish mechanisms and criteria to prohibit any funds from
being provided to electric and gas electrical corporations that are
in bankruptcy.
   (6) Establish tracking and auditing procedures to ensure that
funds are expended in a manner consistent with this act.
   (d) Within six months of the effective date of this section, each
commission shall contract for an independent audit of the
expenditures made pursuant to subdivisions (a) and (b) for the
purpose of determining whether the funds achieved demonstrable energy
peak demand reduction while limiting administrative costs associated
with expenditures made pursuant to those subdivisions.
   (e)  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  program  to reduce peak electricity usage.
   The department shall ensure that the program includes the use
of nontraditional mass media,
    including, but not limited to, the use of community based
organizations, mass media in different languages, and media targeted
to low-income and ethnically diverse communities.  
   (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 

   (f) In order to achieve a reduction in peak electricity demand,
twenty-four million dollars ($24,000,000) to the Department of
Corrections 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:    The
department shall report to the Legislature on or before ____ the
amount of money it has earned as a result of increased generation due
to retrofitting generation units.
   (g) Fifty million dollars ($50,000,000) to the Department of
General Services to be expended for the purposes of implementing
Chapter 3.5 (commencing with Section 4240) of Division 5 of Title 1
of the Government Code.
   (h) One hundred twenty million dollars ($120,000,000) to the
Department of Community Services and Development for the purpose of
supplementing the Low-Income Home Energy Assistance Program (LIHEAP).
  The department may also use these funds for the purposes of
increasing participation in the LIHEAP program.
   (i) In order to achieve a reduction in peak electricity demand of
120 megawatts, fifty million dollars ($50,000,000), upon approval of
the Department of Finance, for programs to encourage implementation
of energy efficient programs in state buildings and at community
colleges.
   (j) In order to achieve a reduction in peak electricity demand at
facilities of the Department of Transportation, the fifteen million
dollars ($15,000,000) appropriated from the State Highway Account by
this section shall be allocated to the Department of Transportation,
upon approval of the Department of Finance, to initiate energy audits
and conservation projects at facilities of the Department of
Transportation.
  SEC. 6.  Any contracts entered into pursuant to Section 5 of this
act by a state agency are exempt from the following requirements of
the Government Code and the Public Contracts Code:  
   (1)  
   (a)  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)  
   (b)  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)  
   (c)  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)  
   (d)  All contracts are exempt from Section 10295 of the
Public Contract Code, relating to approval from the Department of
General Services.  
   (5)  
   (e)  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.  
  SEC. 7.   Sections  3 and 4 of the act adding this
section   5 and 6 of this act  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 under
Section  3 of the act adding this section   5 of
this act that  are unencumbered  or unexpended
 by January 1, 2005, shall revert to the General Fund on
that date.  
  SEC. 6.  
  SEC. 8.   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.
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