BILL NUMBER: SB 168 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 28, 2003
INTRODUCED BY Committee on Energy, Utilities and Communications
(Senators Bowen (Chair), Battin, Dunn, Morrow, and Sher)
FEBRUARY 12, 2003
An act to amend Section 445 of Sections
25401.2, 25519, 25523, 25525, and 25620.5 of, and to amend and
renumber Section 25620.10 of, the Public Resources Code, and to amend
Section 445 of, and to repeal Division 4.7 (commencing with Section
9201) of, the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 168, as amended, Committee on Energy, Utilities and
Communications. Renewable Resource Trust Fund.
Existing
(1) The Warren-Alquist State Energy Resources Conservation and
Development Act requires the State Energy Resources Conservation and
Development Commission to certify a sufficient number of sites and
related facilities to provide a supply of electric power sufficient
to accommodate projected demand for power statewide. The act
requires the commission to be the lead agency. Existing law requires
the commission to complete an environmental impact report (EIR)
within one year after receipt of an application unless the commission'
s regulatory program governing site and facility related proceeding
is certified by the Resources Agency.
This bill would require, if the commission's regulatory program is
certified, that any other public agency that must make a decision
that is subject to the California Environmental Quality Act on a site
or related facility, use the commission's final staff assessment,
unless the commission determines that another document is more
appropriate for a particular site or facility, in the same manner as
they would use an EIR or negative declaration prepared by a lead
agency.
(2) Existing law authorizes the commission to solicit applications
for awards, using a sealed competitive bid, competitive negotiation
process, multiparty agreement, single source, or sole source method.
Existing law permits the cost to the state to be reasonable.
This bill would require the cost to the state to be reasonable.
(3) Existing law requires the commission to regularly convene an
advisory board that is required to make recommendations to guide the
commission's selection of specified programs and projects to be
funded. Existing law specifies the members of the advisory board.
This bill would instead require the board membership to include,
as appropriate, but not be limited to, those specified
representatives.
(4) Existing law provides for the Renewable Resource Trust
Fund in the State Treasury and establishes certain accounts in the
Renewable Resource Trust Fund. Existing law requires, upon
notification by the Energy Commission
commission , the Controller to pay all awards of the money in
the accounts for certain renewable energy purposes. Existing law
requires the Energy Commission commission
to report to the Legislature on the implementation of these
provisions on a quarterly basis.
This bill instead would require the Energy Commission
commission to report to the Legislature on the
implementation of the Renewable Resource Trust Fund on an annual
basis.
(5) Existing law requires the commission, commencing on or before
March 1, 1985, to participate in a meeting on an annual basis that
includes specified representatives, the purpose of which is to work
towards achieving specified goals related to energy research,
development, and demonstration projects.
This bill would repeal those provisions.
(6) This bill would make other related and conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25401.2 of the Public Resources Code is
amended to read:
25401.2. (a) As part of the biennial energy conservation
report required by Section 25401.1
25302 , the commission shall develop and update an inventory of
current and potential cost-effective opportunities in each utility's
service territory, to improve efficiencies and to help utilities
manage loads in all sectors of natural gas and electricity use. The
report shall include estimates of the overall magnitude of these
resources, load shapes, and the projected costs associated with
delivering the various types of energy savings that are identified in
the inventory. The report shall also estimate the amount and
incremental cost per unit of potential energy efficiency and load
management activities. Where applicable, the inventory shall include
data on variations in savings and costs associated with particular
measures. The report shall take into consideration environmental
benefits as developed in related commission and public utilities
commission proceedings.
(b) The commission shall develop and maintain the inventory in
consultation with electric and gas utilities, the Public Utilities
Commission, academic institutions, and other interested parties.
(c) The commission shall convene a technical advisory group to
develop an analytic framework for the inventory, to discuss the level
of detail at which the inventory would operate, and to ensure that
the inventory is consistent with other demand-side data bases.
Privately owned electric and gas utilities shall provide financial
support, gather data, and provide analysis for activities that the
technical advisory group recommends. The technical advisory group
shall terminate on January 1, 1993.
SEC. 2. Section 25519 of the Public Resources Code is amended to
read:
25519. (a) In order to obtain certification for a site and
related facility, an application for certification of the site and
related facility shall be filed with the commission. The application
shall be in form prescribed by the commission and shall be for a
site and related facility that has been found to be acceptable by the
commission pursuant to Section 25516, or for an additional facility
at a site that has been designated a potential multiple-facility site
pursuant to Section 25514.5 and found to be acceptable pursuant to
Sections 25516 and 25516.5. An application for an additional
facility at a potential multiple-facility site shall be subject to
the conditions and review specified in Section 25520.5. An
application may not be filed for a site and related facility, if
there is no suitable alternative for the site and related facility
that was previously found to be acceptable by the commission, unless
the commission has approved the notice based on the one site as
specified in Section 25516.
(b) The commission, upon its own motion or in response to the
request of any a party, may require the
applicant to submit any information, document, or data, in addition
to the attachments required by subdivision (i), that it determines is
reasonably necessary to make any a
decision on the application.
(c) The commission shall be the lead agency as provided in Section
21165 for all projects that require certification pursuant to this
chapter and for projects that are exempted from such
that certification pursuant to Section 25541.
Unless the commission's regulatory program governing site and
facility certification and related proceedings are certified by the
Resources Agency pursuant to Section 21080.5, an environmental impact
report shall be completed within one year after receipt of the
application. If the commission prepares a document or
documents in the place of an environmental impact report or negative
declaration under a commission's regulatory
program is certified pursuant to Section 21080.5, any
other public agency that must make a decision that is subject to the
California Environmental Quality Act, Division 13 (commencing with
Section 21000), on a site or related facility, shall use the
document or documents prepared by the commission
final staff assessment, unless the commission determines another
document is more appropriate for a particular site or facility,
in the same manner as they would use an environmental impact report
or negative declaration prepared by a lead agency.
(d) If the site and related facility specified in the application
is proposed to be located in the coastal zone, the commission shall
transmit a copy of the application to the California Coastal
Commission for its review and comments.
(e) If the site and related facility specified in the application
is proposed to be located in the Suisun Marsh or the jurisdiction of
the San Francisco Bay Conservation and Development Commission, the
commission shall transmit a copy of the application to the San
Francisco Bay Conservation and Development Commission for its review
and comments.
(f) Upon receipt of an application, the commission shall forward
the application to local governmental agencies having land use and
related jurisdiction in the area of the proposed site and related
facility. Those local agencies shall review the application and
submit comments on, among other things, the design of the facility,
architectural and aesthetic features of the facility, access to
highways, landscaping and grading, public use of lands in the area of
the facility, and other appropriate aspects of the design,
construction, or operation of the proposed site and related facility.
(g) Upon receipt of an application, the commission shall cause a
summary of the application to be published in a newspaper of general
circulation in the county in which the site and related facilities,
or any part thereof, designated in the application, is proposed to be
located. The commission shall transmit a copy of the application to
each federal and state agency having jurisdiction or special
interest in matters pertinent to the proposed site and related
facilities and to the Attorney General.
(h) Local and state agencies having jurisdiction or special
interest in matters pertinent to the proposed site and related
facilities shall provide their comments and recommendations on the
project within 180 days of the date of filing of an application.
(i) The adviser shall require that adequate notice is given to the
public and that the procedures specified by this division are
complied with.
(j) For any a proposed site and
related facility requiring a certificate of public convenience and
necessity, the commission shall transmit a copy of the application to
the Public Utilities Commission and request the comments and
recommendations of the Public Utilities Commission on the economic,
financial, rate, system reliability, and service implications of the
proposed site and related facility. If the commission requires
modification of the proposed facility, the commission shall consult
with the Public Utilities Commission regarding the economic,
financial, rate, system reliability, and service implications of
those modifications.
(k) The commission shall transmit a copy of the application to any
governmental agency not specifically mentioned in this act, but
which that it finds has any information
or interest in the proposed site and related facilities, and shall
invite the comments and recommendations of each agency. The
commission shall request any relevant laws,
ordinances, or regulations that an agency has promulgated or
administered.
(l) An application for certification of any
a site and related facilities shall contain a listing of
every federal agency from which any an
approval or authorization concerning the proposed site is required,
specifying the approvals or authorizations obtained at the time of
the application and the schedule for obtaining any
approvals or authorizations pending.
SEC. 3. Section 25523 of the Public Resources Code is amended to
read:
25523. The commission shall prepare a written decision after the
public hearing on an application, which includes all of the
following:
(a) Specific provisions relating to the manner in which the
proposed facility is to be designed, sited, and operated in order to
protect environmental quality and assure public health and safety.
(b) In the case of a site to be located in the coastal zone,
specific provisions to meet the objectives of Division 20 (commencing
with Section 30000) as may be specified in the report submitted by
the California Coastal Commission pursuant to subdivision (d) of
Section 30413, unless the commission specifically finds that the
adoption of the provisions specified in the report would result in
greater adverse effect on the environment or that the provisions
proposed in the report would not be feasible.
(c) In the case of a site to be located in the Suisun Marsh or in
the jurisdiction of the San Francisco Bay Conservation and
Development Commission, specific provisions to meet the requirements
of Division 19 (commencing with Section 29000) of this code or Title
7.2 (commencing with Section 66600) of the Government Code as may be
specified in the report submitted by the San Francisco Bay
Conservation and Development Commission pursuant to subdivision (d)
of Section 66645 of the Government Code, unless the commission
specifically finds that the adoption of the provisions specified in
the report would result in greater adverse effect on the environment
or the provisions proposed in the report would not be feasible.
(d) (1) Findings regarding the conformity of the proposed site and
related facilities with standards adopted by the commission pursuant
to Section 25216.3 and subdivision (d) of Section 25402, with public
safety standards and the applicable air and water quality standards,
and with other relevant applicable
local, regional, state, and federal standards, ordinances, or laws.
If the commission finds that there is noncompliance with any
a state, local, or regional ordinance or
regulation in the application, it shall consult and meet with the
state, local, or regional governmental agency concerned to attempt to
correct or eliminate the noncompliance. If the noncompliance cannot
be corrected or eliminated, the commission shall inform the state,
local, or regional governmental agency if it makes the findings
required by Section 25525.
(2) The commission may not find that the proposed facility
conforms with applicable air quality standards pursuant to paragraph
(1) unless the applicable air pollution control district or air
quality management district certifies, prior to the licensing of the
project by the commission, that complete emissions offsets for the
proposed facility have been identified and will be obtained by the
applicant within the time required by the district's rules or unless
the applicable air pollution control district or air quality
management district certifies that the applicant requires emissions
offsets to be obtained prior to the commencement of operation
consistent with Section 42314.3 of the Health and Safety Code and
prior to commencement of the operation of the proposed facility. The
commission shall require as a condition of certification that the
applicant obtain any required emission offsets within the time
required by the applicable district rules, consistent with any
applicable federal and state laws and regulations, and prior to the
commencement of the operation of the proposed facility.
(e) Provision for restoring the site as necessary to protect the
environment, if the commission denies approval of the application.
(f) In the case of a site and related facility using resource
recovery (waste-to-energy) technology, specific conditions requiring
that the facility be monitored to ensure compliance with paragraphs
(1), (2), (3), and (6) of subdivision (a) of Section 42315 of the
Health and Safety Code.
(g) In the case of a facility, other than a resource recovery
facility subject to subdivision (f), specific conditions requiring
the facility to be monitored to ensure compliance with toxic air
contaminant control measures adopted by an air pollution control
district or air quality management district pursuant to subdivision
(d) of Section 39666 or Section 41700 of the Health and Safety Code,
whether the measures were adopted before or after issuance of a
determination of compliance by the district.
(h) A discussion of any public benefits from the project
including, but not limited to, economic benefits, environmental
benefits, and electricity reliability benefits.
SEC. 4. Section 25525 of the Public Resources Code is amended to
read:
25525. The commission shall may not
certify any a facility contained in
the application when it finds, pursuant to subdivision (b)
(d) of Section 25523, that the facility does not
conform with any applicable state, local, or regional standards,
ordinances, or laws, unless the commission determines that
such the facility is required for public
convenience and necessity and that there are not more prudent and
feasible means of achieving such public
convenience and necessity. In making the determination, the
commission shall consider the entire record of the proceeding,
including, but not limited to, the impacts of the facility on the
environment, consumer benefits, and electric system reliability.
In no event shall the The commission
may not make any a finding
in conflict with applicable federal law or regulation. The basis for
these findings shall be reduced to writing and submitted as part of
the record pursuant to Section 25523.
SEC. 5. Section 25620.5 of the Public Resources Code is amended to
read:
25620.5. (a) The commission may solicit applications for awards,
using a sealed competitive bid, competitive negotiation process,
commission-issued intradepartmental master agreement, the methods for
selection of professional services firms set forth in Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the
Government Code, interagency agreement, single source, or sole source
method. When scoring teams are convened to review and score
proposals, the scoring teams may include persons not employed by the
commission, as long as employees of the state constitute no less than
50 percent of the membership of the scoring team. A person
participating on a scoring team may not have any conflict of interest
with respect to the proposal before the scoring team.
(b) A sealed bid method may be used when goods and services to be
acquired can be described with sufficient specificity so that bids
can be evaluated against specifications and criteria set forth in the
solicitation for bids.
(c) The commission may use a competitive negotiation process in
any of the following circumstances:
(1) Whenever the desired award is not for a fixed price.
(2) Whenever project specifications cannot be drafted in
sufficient detail so as to be applicable to a sealed competitive bid.
(3) Whenever there is a need to compare the different price,
quality, and structural factors of the bids submitted.
(4) Whenever there is a need to afford bidders an opportunity to
revise their proposals.
(5) Whenever oral or written discussions with bidders concerning
the technical and price aspects of their proposals will provide
better results to the state.
(6) Whenever the price of the award is not the determining factor.
(d) The commission may establish interagency agreements.
(e) The commission may provide awards on a single source basis by
choosing from among two or more parties or by soliciting multiple
applications from parties capable of supplying or providing similar
goods or services. The cost to the state may
shall be reasonable and the commission shall
may only enter into a single source agreement
with a particular entity party if the
commission determines that it is in the state's best interests.
(f) The commission, in accordance with subdivision (g) and in
consultation with the Department of General Services, may provide
awards on a sole source basis when the cost to the state is
reasonable and the commission makes any of the following
determinations:
(1) The proposal was unsolicited and meets the evaluation criteria
of this chapter.
(2) The expertise, service, or product is unique.
(3) A competitive solicitation would frustrate obtaining necessary
information, goods, or services in a timely manner.
(4) The award funds the next phase of a multiphased proposal and
the existing agreement is being satisfactorily performed.
(5) When it is determined by the commission to be in the best
interests of the state.
(g) The commission may not use a sole source basis for an award
pursuant to subdivision (f), unless both of the following conditions
are met:
(1) The commission, at least 30 days prior to taking an action
pursuant to subdivision (f), notifies the Joint Legislative Budget
Committee, in writing, of its intent to take the proposed action.
(2) The Joint Legislative Budget Committee either approves or does
not disapprove the proposed action within 30 days from the date of
notification required by paragraph (1).
(h) The commission shall submit semiannual reports to the
Legislative Analyst and to the appropriate fiscal and policy
committees of the Legislature that review bills relating to energy
and public utilities. The reports shall contain an evaluation of the
progress and status of the implementation of this section. In
addition, the reports shall identify each instance in which an
exemption authorized by subdivision (b) of Section 25620.3 was
utilized.
(i) The provisions of this section are severable. If any
provision of this section or its application is held to be invalid,
that invalidity shall does not affect
other provisions or applications that can be given effect without the
invalid provision or application.
SEC. 6. Section 25620.10 of the Public Resources Code, as added by
Section 9 of Chapter 515 of the Statutes of 2002, is amended and
renumbered to read:
25620.10.
25620.11. The commission shall regularly convene an
advisory board that shall make recommendations to guide the
commission's selection of programs and projects to be funded under
this chapter. The advisory board shall be made up of
include as appropriate, but not be limited to,
representatives from the Public Utilities Commission, consumer
organizations, environmental organizations, and electrical
corporations subject to the funding requirements of Section 381 of
the Public Utilities Code.
SEC. 7. Section 445 of the Public Utilities Code is amended
to read:
445. (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
(b) The following accounts are hereby created within the Renewable
Resource Trust Fund:
(1) The Existing Renewable Resources Account.
(2) New Renewable Resources Account.
(3) Emerging Renewable Resources Account.
(4) Customer-Credit Renewable Resource Purchases Account.
(5) Renewable Resources Consumer Education Account.
(c) The money in the fund may be expended for the state's
administration of this article only upon appropriation by the
Legislature in the annual Budget Act.
(d) Notwithstanding Section 383, that portion of revenues
collected by electrical corporations for the benefit of in-state
operation and development of existing and new and emerging renewable
resource technologies, pursuant to paragraphs (3) and (6) of
subdivision (c) of Section 381, shall be transmitted to the State
Energy Resources Conservation and Development Commission (hereafter
the Energy Commission) at least quarterly for deposit in the
Renewable Resource Trust Fund. After setting aside in the fund money
that may be needed for expenditures authorized by the annual Budget
Act in accordance with subdivision (c), the Treasurer shall
immediately deposit money received pursuant to this section into the
accounts created pursuant to subdivision (b) in proportions
designated by the Energy Commission for the current calendar year.
Notwithstanding Section 13340 of the Government Code, the money in
the fund and the accounts within the fund are hereby continuously
appropriated to the Energy Commission without regard to fiscal year
for the purposes enumerated in Section 383.5.
(e) Upon notification by the Energy Commission, the Controller
shall pay all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in Section 383.5. The
eligibility of each award shall be determined solely by the Energy
Commission based on the procedures it adopts under subdivision (h) of
Section 383.5. Based on the eligibility of each award, the Energy
Commission shall also establish the need for a multiyear commitment
to any particular award and so advise the Department of Finance.
Eligible awards submitted by the Energy Commission to the Controller
shall be accompanied by information specifying the account from which
payment should be made and the amount of each payment; a summary
description of how payment of the award furthers the purposes
enumerated in Section 383.5; and an accounting of future costs
associated with any award or group of awards known to the Energy
Commission to represent a portion of a multiyear funding commitment.
(f) The Energy Commission may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts. The Energy Commission shall examine the cashflow in the
respective accounts on an annual basis, and shall annually prepare
and submit to the Legislature a report that describes the status of
account transfers and repayments.
(g) The Energy Commission shall, on an annual basis, report to the
Legislature on the implementation of this article. Those annual
reports shall be submitted to the Legislature not more than 30 days
after the close of the fiscal year and shall include information
describing the awards submitted to the Controller for payment
pursuant to this article, the cumulative commitment of claims by
account, the relative demand for funds by account, a forecast of
future awards, and other matters the Energy Commission determines may
be of importance to the Legislature.
(h) The Department of Finance, commencing March 1, 1999, shall
conduct an independent audit of the Renewable Resource Trust Fund and
its related accounts annually, and provide an audit report to the
Legislature not later than March 1 of each year for which this
article is operative. The Department of Finance's report shall
include information regarding revenues, payment of awards, reserves
held for future commitments, unencumbered cash balances, and other
matters that the Director of Finance determines may be of importance
to the Legislature.
SEC. 8. Division 4.7 (commencing with Section 9201) of the Public
Utilities Code is repealed.