BILL NUMBER: SBX1 5 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 2, 2001
AMENDED IN SENATE MARCH 5, 2001
AMENDED IN SENATE FEBRUARY 20, 2001
AMENDED IN SENATE FEBRUARY 5, 2001
INTRODUCED BY Senators Sher, Alarcon, Bowen, and Burton
(Principal coauthors: Senators Chesbro, Machado, and Perata)
(Principal coauthor: Assembly Member Shelley)
(Coauthors: Senators 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. 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 state agencies
to implement energy related projects, 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.
(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
$1,039,500,000 $926,960,000 from the General
Fund to implement energy efficiency programs and supplement existing
energy efficiency programs. Of that amount, from the General Fund,
$321,000,000 $326,000,000 would be
allocated to the Public Utilities Commission, $464,500,000
$405,500,000 would be allocated to the State
Energy Resources Conservation and Development 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, $24,000,000 would be
allocated to the Department of Corrections, and
$120,000,000 would be allocated to the Department of Community
Services and Development , and $15,460,000 would be allocated to
the Department of Water Resources to fund various energy
efficiency programs, as scheduled, and subject to reallocation and
conditions. Under the bill, any funds that are unencumbered by
January 1, 2005, would revert to the General Fund on that date.
(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 this act 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 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 committee may hold a hearing within 15 days of receipt of
the notification. If a hearing is held, the affected agencies shall
be provided all information available to the joint committee at least
10 days in advance of the hearing. In the event that a hearing is
conducted, the 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. STATE ENERGY PROJECTS
4240. It is the intent of the Legislature to permit 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. As used in this chapter, and as used in Section 3 of the
act adding this chapter, "state energy project" means equipment, load
management techniques, and other measures or services that reduce
energy consumption and provide for more efficient use of energy in
state buildings or facilities, or buildings or facilities owned or
operated by community colleges.
4242. State energy projects may be implemented under this chapter
with the approval of the Director of General Services and the
Director of Finance.
4243. Prior to awarding or entering into a contract, agreement,
or lease, the state agency shall request proposals from qualified
persons. After evaluating the proposals, the 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. 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).
4244. Notwithstanding Section 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 the exemption necessary to implement the
purpose of this chapter, to reduce peak electricity demand, and to
improve energy efficiency.
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.
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. 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)
(c) 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.
The commission shall consult with the Department of Transportation
(CALTRANS) to ensure that outdoor lighting standards that affect
CALTRANS are compatible with that department's policies and standards
for safety and illumination levels on state highways.
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 thirty-nine million five hundred thousand dollars
($1,039,500,000) nine hundred twenty-six million nine
hundred sixty thousand dollars ($926,960,000) 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 and
meet urgent needs of low-income households, three hundred
twenty-one million dollars ($321,000,000) twenty-six
million dollars ($326,000,000) for allocation by the Public
Utilities Commission for the customers of electric and gas
corporations subject to commission jurisdiction, to be expended in
the following amounts:
(1) Sixty-six million dollars ($66,000,000) to encourage the
purchase , refurbishment, and retirement of inefficient
appliances and improvements in the efficiency of
high-efficiency heating, ventilating, and air-conditioning (HVAC)
equipment and appliances insulation or other
efficiency measures . Any funds expended pursuant to this
paragraph for the purchase of refrigerators, air-conditioning
equipment, and other similar residential appliances shall be expended
pursuant to the following criteria:
(A) Priority for the expenditure of funds shall be given for the
purchase or retirement of those appliances in low- and
moderate-income households, and for the replacement of the oldest and
least efficient appliances.
(B) Any funds expended for the replacement of refrigerators shall
include a condition that older refrigerators that are replaced are
promptly disposed of or recycled in a manner that protects public
health and the environment.
(B) Any retirement of residential equipment and appliances
undertaken pursuant to this paragraph shall be undertaken in a manner
that protects public health and the environment. Nothing in this
paragraph affects the requirements of Article 10.1 (commencing with
Section 25211) of Chapter 6.5 of Division 20 of the Health and Safety
Code and Chapter 3.5 (commencing with Section 42160) of Part 3 of
Division 30 of the Public Resources Code.
(2) One hundred million dollars ($100,000,000) to provide
immediate assistance to electric or 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
and to increase enrollment in the CARE program.
(3) Twenty million dollars ($20,000,000) to augment funding for
low-income weatherization services provided pursuant to Section 2790
of the Public Utilities Code, and to fund 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 retrofits for oil or gas, or both,
producers and pipelines. For the purposes of this paragraph,
"ultra low polluting" means retrofit equipment which exceeds the
requirements for best available control technology within the air
district in which the pump or motor is located.
(5) One hundred million dollars ($100,000,000) to provide
incentives to encourage replacement of low-efficiency lighting with
high-efficiency lighting systems .
(6) Fifteen million dollars ($15,000,000)
Twenty million dollars ($20,000,000) to encourage installation
of demand-responsive and energy-efficient technologies in buildings
owned and operated by counties and cities.
(b) In order to achieve a reduction in peak electricity demand,
four hundred sixty-four million five hundred thousand
dollars ($464,500,000) four hundred five million five
hundred thousand dollars ($405,500,000) 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) Eighty-seven million dollars ($87,000,000) 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 , refurbishment, and retirement of
inefficient appliances and improvements in the efficiency of
high-efficiency heating, ventilating, and air-conditioning (HVAC)
equipment and appliances insulation, and
other efficiency measures . Any funds expended pursuant to
this paragraph for the purchase of refrigerators, air-conditioning
equipment, and other similar residential appliances shall be expended
pursuant to the following criteria:
(i) Priority for expenditure of funds shall be given for the
purchase of those appliances in low- and moderate-income households,
and for the replacement of the oldest and least efficient appliances.
(ii) Any funds expended for the replacement of refrigerators shall
include a condition that older refrigerators that are replaced are
promptly disposed of or recycled in a manner that protects public
health and the environment.
(ii) Any retirement of residential equipment and appliances
undertaken pursuant to this paragraph shall be undertaken in a manner
that protects public health and the environment. Nothing in this
paragraph affects the requirements of Article 10.1 (commencing with
Section 25211) of Chapter 6.5 of Division 20 of the Health and Safety
Code and Chapter 3.5 (commencing with Section 42160) of Part 3 of
Division 30 of the Public Resources Code.
(B) Six million eight hundred thousand dollars ($6,800,000) to
provide incentives to encourage replacement of low-efficiency
lighting with high-efficiency lighting.
(C) Sixty million dollars ($60,000,000) for energy efficiency,
peak demand reduction, and low-income assistance measures in the
service areas of the locally owned public utilities analagous to
those measures and programs funded in the service areas of electric
and gas corporations subject to the jurisdiction of the Public
Utilities Commission pursuant to subdivision (a).
(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. Of the amount appropriated pursuant
to this paragraph, not more than thirty-five million dollars
($35,000,000) shall be expended to provide incentives for the
installation of real time, time-of-use meters.
(3) Fifty million dollars ($50,000,000) to implement a low-energy
usage building materials program, and other measures to lower
air-conditioning usage in schools, colleges, universities, hospitals,
and other nonresidential buildings.
(4) Sixty million dollars ($60,000,000) to implement a program to
encourage third parties to implement innovative peak demand reduction
measures.
(A) Of the amount appropriated pursuant to this paragraph, not
more than ten million dollars ($10,000,000) shall be expended for
innovative peak demand reduction measures in the agricultural sector.
(B) Of the amount appropriated pursuant to this paragraph, not
more than one million dollars ($1,000,000) shall be expended by the
commission to fund one-time startup costs for innovative voluntary
programs to reduce air emissions through energy conservation and
related actions pursuant to programs authorized by law in effect on
the effective date of this act.
(5) Fifty million dollars ($50,000,000) to implement a program to
reduce peak load electricity usage for the agricultural sector.
The commission shall adopt guidelines for expenditure of funds
pursuant to this paragraph that ensure the equitable distribution of
funds appropriated pursuant to this paragraph among small, medium,
and large sized farming and agricultural operations.
(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 million dollars ($64,000,000) to provide incentives
for water and wastewater treatment systems to reduce peak usage.
(8) Fifteen million dollars ($15,000,000)
(7) Twenty million dollars ($20,000,000) to encourage
installation of demand-responsive and energy-efficient technologies
in buildings owned and operated by counties and cities.
(9)
(8) Seven million dollars ($7,000,000) to implement a
program to teach school children about energy efficiency in the home
and at school.
(10)
(9) 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) emissions. Funds expended pursuant to this
paragraph shall be expended exclusively for retrofit equipment that
meets or exceeds the requirements for best available control
technology within the air district in which the distributed
generation owned and operated by a municipal water district is
located, or with standards adopted by the state Air Resources Board
pursuant to Section 41514.9 of the Health and Safety Code upon the
effective date of those standards. Technologies eligible pursuant to
this paragraph include natural gas reciprocating engines,
microturbines, fuel cells, and wind and solar energy renewable
technologies.
(10) One million four hundred thousand dollars ($1,400,000)
to fund 16 personnel-years in the Energy Commission to implement
subdivision (a) this subdivision .
Funds appropriated pursuant to this paragraph shall be used to fund
temporary staff resources, including, but not limited to, limited
term positions, not to exceed a term of four years, at the commission
for the exclusive purpose of implementing programs funded pursuant
to this subdivision.
(12)
(11) Twenty-five million dollars ($25,000,000) to provide
low-interest or zero-interest loans to schools pursuant to
the Energy Conservation Assistance Act (Chapter 5.2 (commencing with
Section 25410) of the Public Resources Code).
(13)
(12) 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 Except for funds expended to
implement programs established pursuant to Section 25555 of the
Public Resources Code, for which the Public Utilities Commission or
the Energy Commission has adopted and published guidelines pursuant
to that section, 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.
Within 10 days from the date of the adoption of criteria pursuant to
this paragraph, each commission shall provide a copy of the criteria
to the chairperson of the Legislative Budget Committee, to the
chairpersons of the appropriate policy and fiscal committees of both
houses of the Legislature, and to the Governor.
(2) Limit administrative costs to not more than 2 1/2 percent of
the amount of the funds expended. For the purposes of this
paragraph, "administrative costs" means commission
personnel and overhead costs associated with the implementation of
each measure or program. However, "administrative costs" does not
include costs associated with marketing or evaluation of a measure of
a program.
(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 that ensure that funds
expended pursuant to this section through electric and gas
corporations are not seized by the creditors of those corporations in
the event of a bankruptcy. In implementing this paragraph, the
commissions shall adopt mechanisms such as the segregation of funds
by the electric or gas corporation, the holding of those funds in
trust until they are expended, and the reversion of funds to the
General Fund in the event of 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. Within one
year of the effective date of this section, each commission shall
submit the audit prepared pursuant to this paragraph 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.
(e) 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.
(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.
(g) One hundred million dollars ($100,000,000) to the
(f) 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. The department shall limit its
administrative costs to not more than 21/2 percent of the funds
expended. For the purposes of this paragraph, "administrative costs"
means personnel and overhead costs associated with implementation of
each measure or program. However, "administrative costs" does not
include costs associated with marketing or evaluation of a measure or
program.
(h)
(g) 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. The department shall
use funds appropriated pursuant to this paragraph in the following
manner:
(1) The department shall implement a California Low Income Home
Energy Assistance Program (LIHEAP). Services provided by California'
s LIHEAP shall be designed to do both of the following:
(A) Increase energy conservation and reduce demand for energy
services in low-income households.
(B) Assure that the most vulnerable households cope with high
energy costs.
(2) The program shall include weatherization and conservation
services, energy crisis intervention services, and cash assistance
payments.
(3) (A) Eligibility for California LIHEAP shall include households
with incomes that do not exceed the greater of either of the
following:
(i) An amount equal to 60 percent of the state median income.
(ii) An amount equal to 80 percent of the county median income.
(B) In no area shall eligibility be provided to households whose
income is greater than 250 percent of the federal poverty level
for this state.
(4) The department shall examine the penetration of other energy
programs, including, but not limited to, those provided through
federal LIHEAP, utility companies, and other parties, to identify the
adequacy of services to elderly persons, disabled persons,
limited-English-speaking persons, migrant and seasonal farmworkers
and households with very young children. California LIHEAP funds
shall be distributed so as to ensure that vulnerable populations have
comparable access to energy programs.
(5) The department shall ensure that services under California
LIHEAP are delivered using all of the following requirements:
(A) The department shall establish reasonable limits for
expenditures, including up to 15 percent for outreach and training
for consumers.
(B) Grantee agencies shall do special outreach to vulnerable
households, including outreach to senior centers, independent living
centers, welfare departments, regional centers, and migrant and
seasonable farmworkers.
(C) Grantee agencies shall be required to coordinate with other
low-income energy programs, and to demonstrate plans for using all
energy resources efficiently for maximum outreach to low-income
households.
(D) Grantee agencies shall spend the maximum feasible amount of
California LIHEAP funds for weatherization assistance, but in no
event less than 50 percent of the funds available by grantee. The
balance shall be used for cash assistance and energy crisis
intervention. The department shall provide grantees with maximum
flexibility to use energy crisis and cash assistance funds to resolve
energy crisis for households and to serve the maximum number of
households. Cash assistance payments may be used as a supplement to
federal LIHEAP cash assistance payments.
(6) The department shall do the following in addition to
administering the program:
(A) Explore, with grantee agencies, standards for determining
effective, efficient intake, and procedures to combine outreach for
federal, state, and utility low-income energy programs into a single
intake process.
(B) Report to the policy and budget committees of the Legislature
on the extent to which increased flexibility in weatherization
measures and flexibility in cash assistance and crisis intervention
payments have increased service and reduced energy demand. If
barriers to flexibility exist, the report should identify those
barriers.
(C) Report to the policy and budget committees ot the Legislature
on the number of recipients of service, the number of grantees
providing service, categories of expenditure, estimated impact of
funds on energy demand, estimated unmet need, and plans for automated
reporting of this information routinely.
(7) For any funds distributed in 2001, the department shall
distribute funds as follows:
(A) Funds shall be distributed to have maximum possible impact on
reducing energy demand immediately.
(B) First priority shall be to distribute funds through
community-based programs with whom it has existing contracts.
(C) If additional capacity is needed beyond the existing network,
or if vulnerable populations cannot be served within the existing
contracts, the department may develop and RFP process to solicit
additional grantees.
(8) The department shall limit administrative costs to not
more than 21/2 percent of the funds expended. For the purposes of
this paragraph, "administrative costs" means personnel and overhead
costs associated with the implementation of each measure or program.
However, "administrative costs" does not include costs associated
with the marketing or evaluation of a measure or program.
Fifteen million four hundred sixty thousand dollars ($15,460,000) to
the Department of Water Resources to establish the Energy and Water
Efficiency Program to assist local water purveyors and water users in
developing and implementing measures that conserve energy and water.
(i) Each state agency receiving funds appropriated pursuant to
this section shall ensure, where appropriate, not less than 85
percent of the funds shall be expended for direct rebates, purchases
, direct installations , buy-downs, loans, or other
incentives that will achieve reductions in peak electricity demand
and improvements in energy efficiency.
(j) On or before January 1, 2002, each state agency receiving
funds appropriated pursuant to this section shall provide quarterly
reports 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, which include
all of the following information:
(1) The amount of funding expended.
(2) The measures, programs, or activities that were 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 reduced per dollar expended.
(k) To the extent that local government entities may apply for,
and receive funds pursuant to this section, and to the extend they
otherwise qualify for the funds, federally recognized California
Indian tribes may apply for funds appropriated pursuant to this
section on behalf of their tribal members, and the applications shall
be considered on their merits. Each commission shall ensure that
its efforts to provide public information on programs funded pursuant
to this section shall include outreach to California Indian tribes.
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:
(a) Except for any contract entered into by the Department of
Consumer Affairs pursuant to subdivision (e) of Section 5 of this
act, 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) 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.
(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.
(d) All contracts are exempt from Section 10295 of the Public
Contract Code, relating to approval from the Department of General
Services.
(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.
(f) Grants may be awarded for projects or programs that include a
group of related projects, or to a party who aggregates projects that
directly benefit from the grant. The grants do not constitute the
rendering of goods or services or a direct benefit to the agency
making the grant.
(g) Contracts may be awarded pursuant to subdivision (c) of
Section 25555 of the Public Resources Code by choosing from among one
or more parties, or soliciting multiple applications from parties
capable of providing goods or services. For purposes of this
section, Section 25555 of the Public Resources Code shall,
notwithstanding, any provision of law to the contrary, apply during
the period this section is effective, as set forth in Section 7 of
the act adding this section. Contracts may be awarded to develop or
administer or both, portions of the program, including agency
delegation of the authority to implement the program.
(h) The Public Utilities Commission and the Energy Commission may
each delegate approval of contracts and grants to the agency
executive director or an agency committee up to a maximum amount that
shall be established by the respective commission.
SEC. 7. Sections 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 5 of this act
that are unencumbered by January 1, 2005, shall revert to the
General Fund on that date.
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.