Amended in Assembly June 14, 2016

Amended in Assembly May 25, 2016

Senate BillNo. 840


Introduced by Committee on Budget and Fiscal Review

January 7, 2016


begin deleteAn act relating to the Budget Act of 2016. end deletebegin insertAn act to amend Section 51013.1 of, and to add Section 51015.6 to, the Government Code, to amend Section 44273 of the Health and Safety Code, to amend Section 1546.1 of the Penal Code, to amend Sections 3401 and 25751 of the Public Resources Code, and to amend Sections 388 and 399.20 of, to add Section 784.1 to, to add and repeal Section 388.2 of, and to repeal Section 2834 of, the Public Utilities Code, relating to energy, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 840, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2016. end deletebegin insertPublic resources: energy.end insert

begin insert

(1) Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities. Existing law authorizes the PUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law authorizes certain public utilities, including gas corporations, to propose research and development programs and authorizes the PUC to allow inclusion of expenses for research and development in the public utility’s rates. Existing law requires the PUC to consider specified guidelines in evaluating the research, development, and demonstration programs proposed by gas corporations.

end insert
begin insert

The California Renewables Portfolio Standard Program requires the PUC to adopt policies and programs that promote the in-state production and distribution of biomethane. Existing law requires the PUC to adopt, by rule or order, standards for biomethane that specify the concentrations of constituents of concern that are reasonably necessary to protect public health and ensure pipeline integrity and safety, as specified, and requirements for monitoring, testing, reporting, and recordkeeping, as specified. Existing law requires a gas corporation to comply with those standards and requirements and requires that gas corporation tariffs condition access to common carrier pipelines on the applicable customer meeting those standards and requirements. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

end insert
begin insert

This bill would request the California Council on Science and Technology to undertake and complete a study analyzing the regional and gas corporation specific issues relating to minimum heating value and maximum siloxane specifications adopted by the PUC for biomethane before it can be injected into common carrier gas pipelines. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require each gas corporation operating common carrier pipelines in California to proportionately contribute to the expenses to undertake the study with the cost recoverable in rates. The bill would authorize the PUC to modify certain available monetary incentives to allocate some of the incentive moneys to pay for the costs of the study so as to not further burden ratepayers with additional expense. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require the PUC, within 6 months of its completion, to reevaluate requirements and standards adopted for injection of biomethane into common carrier pipelines and, if appropriate, change those requirements and standards or adopt new requirements and standards, giving due deference to the conclusions and recommendations made in the study. Because certain provisions of the bill would be a part of the act and a violation of an order or decision of the PUC implementing its requirements would be a crime, this bill would impose a state-mandated local program by creating a new crime.

end insert
begin insert

Existing law requires the PUC to direct the electrical corporations to collectively procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013. Existing law requires the PUC, for each electrical corporation, to allocate shares of the 250 megawatts based on the ratio of each electrical corporation’s peak demand compared to the total statewide peak demand. Existing law requires the PUC to allocate those 250 megawatts to electrical corporations from specified categories of bioenergy project types, with specified portions of that 250 megawatts to be allocated from each category. Existing law requires the PUC to encourage gas and electrical corporations to develop and offer programs and services to facilitate development of in-state biogas for a broad range of purposes. Existing law authorizes the PUC, in consultation with specified state agencies, if it finds that the categorical allocations of those 250 megawatts are not appropriate, to reallocate those 250 megawatts among those categories.

end insert
begin insert

This bill would establish interconnection requirements for certain bioenergy projects from which generation capacity is to be procured pursuant to the above requirement. Because the above requirements would be codified in the act, this bill would impose a state-mandated local program by creating a new crime.

end insert
begin insert

The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the PUC an application requesting approval of a tariff to implement a program enabling ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the PUC, by July 1, 2014, to issue a decision concerning the participating utility’s application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the PUC, after notice and opportunity for public comment, to approve the application if the PUC determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the PUC to require that a participating utility’s Green Tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.

end insert
begin insert

This bill would extend the operation of the program indefinitely. By extending the requirements of the Green Tariff Shared Renewables Program the bill would impose a state-mandated local program by extending the application of a crime.

end insert
begin insert

Decisions of the PUC adopted the California Solar Initiative administered by electrical corporations and subject to the PUC’s supervision. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake certain steps in implementing the California Solar Initiative and requires the PUC to ensure that the total cost over the duration of the program does not exceed $3,550,800,000. Existing law specifies that the financial components of the California Solar Initiative include the New Solar Homes Partnership Program, which is administered by the Energy Commission. Existing law requires the program to be funded by charges in the amount of $400,000,000 collected from customers of the state’s 3 largest electrical corporations. If moneys from the Renewable Resource Trust Fund for the program are exhausted, existing law authorizes the PUC, upon notification by the Energy Commission, to require those electrical corporations to continue the administration of the program pursuant to the guidelines established by the Energy Commission for the program until the $400,000,000 monetary limit is reached. Existing law authorizes the PUC to determine whether a 3rd party, including the Energy Commission, should administer the electrical corporation’s continuation of the program. Existing law establishes the Renewable Resource Trust Fund as a fund that is continuously appropriated, with certain exceptions for administrative expenses, in the State Treasury.

end insert
begin insert

This bill would require, if the PUC orders a continuation of the New Solar Homes Partnership Program and determines that the Energy Commission should be the 3rd party administrator for the program, that any funding made available for the program be deposited into the Emerging Renewable Resources Account of the Renewable Resource Trust Fund and used for the program.

end insert
begin insert

(2) The Public Utilities Act requires the PUC to submit various reports to the Legislature relative to the actions of the PUC.

end insert
begin insert

This bill would require the PUC to submit 2 reports to the relevant policy and fiscal committees of the Legislature by March 1, 2017. The first report would pertain to the PUC’s business process inventory efforts. The 2nd report would concern options to locate operations and staff outside of the PUC’s San Francisco headquarters and would explore options to allow the PUC to collaborate with other state entities and provide staff more opportunities for training, career development, and exchange placements with other state entities.

end insert
begin insert

Existing law, with exceptions, prohibits a government entity from compelling the production of or access to electronic communication information or electronic device information without a search warrant, wiretap order, order for electronic reader records, or subpoena.

end insert
begin insert

This bill would provide that the above provisions do not limit the authority of the PUC or the Energy Commission to obtain energy or water supply and consumption information pursuant to the powers granted to them under the Public Utilities Code or the Public Resources Code and other applicable state laws.

end insert
begin insert

(3) Existing law authorizes the Department of General Services or any other state or local agency intending to enter into an energy savings contract to establish a pool of qualified energy service companies, as specified. Existing law authorizes energy service contracts for individual projects undertaken by any state or local agency to be awarded through a competitive selection process to those companies identified in the pool.

end insert
begin insert

This bill would authorize the department or another state or local agency intending to enter into contracts for energy retrofit projects, as defined, to establish one of those pools. The bill would, until January 1, 2020, authorize the department and other state agencies to establish one or more pools of qualified energy service companies, as defined, that have provided the department or state agency with a specific enforceable commitment regarding the use of a skilled and trained workforce. The bill would authorize the department or state agency to select a qualified energy service company from that pool for a specific energy retrofit project on a rotational basis. The bill would require those qualified energy service companies working on a contract or project to submit a monthly report to the department or state agency, as appropriate, demonstrating their compliance with the commitment regarding the use of a skilled and trained workforce.

end insert
begin insert

Under existing law, a violation of the Public Utilities Act is a crime.

end insert
begin insert

Because the above provisions would be codified in the act, a violation of which would be a crime, this bill would impose a state-mandated local program.

end insert
begin insert

(4) The Elder California Pipeline Safety Act of 1981, among other things, by January 1, 2018, requires any new or replacement pipeline that is near environmentally or ecological by sensitive areas to use the best technology available to reduce the amount of oil released in a spill, as specified. Existing law requires operators of existing pipelines near these areas to submit a plans by January 1, 2018, to retrofit those pipelines for these purposes using the best available technology by January 1, 2020. A violation of these provisions is a crime.

end insert
begin insert

This bill would define “oil” for these provisions of the act concerning pipeline safety, by reference to a specified federal regulation, to mean petroleum, petroleum products, anhydrous ammonia, and ethanol. By expanding the scope of a crime, the bill would impose a state-mandated local program.

end insert
begin insert

Under the Elder California Pipeline Safety Act of 1981, the State Fire Marshal administers provisions regulating the inspection of intrastate pipelines that transport hazardous liquids.

end insert
begin insert

This bill would require the State Fire Marshal, on or before January 31, 2017, and on or before January 31 annually thereafter until January 31, 2021, to submit a report to the Legislature containing specified information regarding the inspection of those pipelines, shutoff systems in those pipelines, and the status of 2 specified pipelines.

end insert
begin insert

(5) Existing law imposes, among other things, an annual charge upon each person operating or owning an interest in an oil or gas well, with respect to the production of the well, which charge is payable to the Treasurer for deposit into the Oil, Gas, and Geothermal Administrative Fund. Existing law requires that moneys from charges levied, assessed, and collected upon the properties of every person operating or owning an interest in the production of a well be used exclusively, upon appropriation, for the support and maintenance of the Department of Conservation, which is charged with the supervision of oil and gas operations, and for the support of the State Water Resources Control Board and the regional water quality control boards for their activities related to oil and gas operations that may affect water resources.

end insert
begin insert

This bill would additionally authorize the use of those moneys for the support of the State Air Resources Board and the Office of Environmental Health Hazard Assessment for their activities related to oil and gas operations that may affect air quality, public health, or public safety.

end insert
begin insert

(6) Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the Energy Commission, to provide to specified entities, upon appropriation by the Legislature, grants, loans, loan guarantees, revolving loans, or other appropriate measures for the development and deployment of innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change goals. Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Fund, moneys in which are to be expended by the Energy Commission, upon appropriation, to implement the program. Existing law creates the Public Interest Research, Development, and Demonstration Fund in the State Treasury and required that specified moneys collected by the state’s 3 largest electrical corporations, until January 1, 2012, be paid into the Public Interest Research, Development, and Demonstration Fund. Existing law requires $10,000,000 to be transferred annually from the Public Interest Research, Development, and Demonstration Fund to the Alternative and Renewable Fuel and Vehicle Technology Fund.

end insert
begin insert

This bill would repeal the requirement that $10,000,000 be transferred annually from the Public Interest Research, Development, and Demonstration Fund to the Alternative and Renewable Fuel and Vehicle Technology Fund.

end insert
begin insert

(7) Existing law vests with the Energy Commission jurisdiction over specified matters related to energy. Existing law requires the Attorney General, upon the request of the Energy Commission, to petition a court of competent jurisdiction to enjoin violations of law that are within the subject matter of the Energy Commission. Existing law requires the Energy Commission to prescribe, by regulation, building design and construction standards, energy and water efficiency design standards for new residential and nonresidential buildings, and appliance efficiency standards. Existing law authorizes the Energy Commission to establish an administrative enforcement process to enforce the appliance efficiency standards. Existing law establishes the Appliance Efficiency Enforcement Subaccount in the Energy Resources Program Account for the deposition of the penalties collected. Existing law authorizes the moneys subaccount to be expended by the Energy Commission, upon appropriation by the Legislature, for the education of the public regarding appliance energy efficiency and for the enforcement of specified regulations.

end insert
begin insert

This bill would appropriate $275,000 from the Appliance Efficiency Enforcement Subaccount in the Energy Resources Programs Account to the Energy Commission to support the Title 20 Appliance Efficiency Standards Compliance Assistance and Enforcement Program.

end insert
begin insert

(8) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin insert

(9) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P8    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 51013.1 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

51013.1.  

(a) By January 1, 2018, any new or replacement
4pipeline near environmentally and ecologically sensitive areas in
5the coastal zone shall use best available technology, including, but
6not limited to, the installation of leak detection technology,
7automatic shutoff systems, or remote controlled sectionalized block
8valves, or any combination of these technologies, based on a risk
9analysis conducted by the operator, to reduce the amount of oil
10released in an oil spill to protect state waters and wildlife.

11(b) (1) By July 1, 2018, an operator of an existing pipeline near
12environmentally and ecologically sensitive areas in the coastal
13zone shall submit a plan to retrofit, by January 1, 2020, existing
14pipelines near environmentally and ecologically sensitive areas in
15the coastal zone with the best available technology, including, but
16not limited to, installation of leak detection technologies, automatic
17shutoff systems, or remote controlled sectionalized block valves,
18or any combination of these technologies, based on a risk analysis
19conducted by the operator to reduce the amount of oil released in
20an oil spill to protect state waters and wildlife.

21(2) An operator may request confidential treatment of
22information submitted in the plan required by paragraph (1) or
23contained in any documents associated with the risk analysis
24described in this section, including, but not limited to, information
25regarding the proposed location of automatic shutoff valves or
26remote controlled sectionalized block valves.

27(c) The State Fire Marshal shall adopt regulations pursuant to
28this section by July 1, 2017. The regulations shall include, but not
29be limited to, all of the following:

P9    1(1) A definition of automatic shutoff systems.

2(2) A process to assess the adequacy of the operator’s risk
3analysis.

4(3) A process by which an operator may request confidential
5treatment of information submitted in the plan required by
6paragraph (1) of subdivision (b) or contained in any documents
7associated with the risk analysis described in this section.

8(4) A determination of how near to an environmentally and
9ecologically sensitive area a pipeline must be to be subject to the
10requirements of this section based on the likelihood of the pipeline
11impacting those areas.

12(d) An operator of a pipeline near environmentally and
13 ecologically sensitive areas in the coastal zone shall notify the
14Office of the State Fire Marshal of any new construction or retrofit
15of pipeline in these waters.

16(e) For purposes of implementing this section, the State Fire
17Marshal shall consult with the Office of Spill Prevention and
18Response about the potential impacts to state water and wildlife.

19(f) For purposes of this section, “environmentally and
20ecologically sensitive areas” is the same term as described in
21subdivision (d) of Section 8574.7.

22(g) (1) For purposes of this section, “best available technology”
23means technology that provides the greatest degree of protection
24by limiting the quantity of release in the event of a spill, taking
25into consideration whether the processes are currently in use and
26could be purchased anywhere in the world.

27(2) The State Fire Marshal shall determine what is the best
28available technology and shall consider the effectiveness and
29engineering feasibility of the technology when making this
30determination.

begin insert

31
(h) For the purposes of this section, “oil” means hazardous
32liquid as defined in Section 195.2 of Title 49 of the Code of Federal
33Regulations.

end insert
34begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 51015.6 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
35read:end insert

begin insert
36

begin insert51015.6.end insert  

(a) On or before January 31, 2017, and on or before
37January 31 annually thereafter, the State Fire Marshal shall submit
38a report to the Legislature containing information, including, but
39not limited to, all of the following:

P10   1
(1) The number of annual inspections conducted pursuant to
2Section 51015.1.

3
(2) The status of the installation of automatic shutoff systems
4pursuant to Section 51013.1, including a summary of the types of
5shutoff systems installed, and the number of miles of pipeline
6covered by an automatic shutoff system.

7
(3) The status of Line 901 and Line 903 in the County of Santa
8Barbara.

9
(b) (1) A report required to be submitted pursuant to subdivision
10(a) shall be submitted in compliance with Section 9795.

11
(2) Pursuant to Section 10231.5, this section is inoperative on
12January 31, 2021.

end insert
13begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 44273 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
14amended to read:end insert

15

44273.  

(a) The Alternative and Renewable Fuel and Vehicle
16Technology Fund is hereby created in the State Treasury, to be
17administered by the commission. The moneys in the fund, upon
18appropriation by the Legislature, shall be expended by the
19commission to implement the Alternative and Renewable Fuel and
20Vehicle Technology Program in accordance with this chapter.

begin delete

21(b) Notwithstanding any other provision of law, the sum of ten
22million dollars ($10,000,000) shall be transferred annually from
23the Public Interest Research, Development, and Demonstration
24Fund created by Section 384 of the Public Utilities Code to the
25Alternative and Renewable Fuel and Vehicle Technology Fund.
26Prior to the award of any funds from this source, the commission
27 shall make a determination that the proposed project will provide
28benefits to electric or natural gas ratepayers based upon the
29commission’s adopted criteria.

30(c)

end delete

31begin insert(b)end insert Beginning with the integrated energy policy report adopted
32in 2011, and in the subsequent reports adopted thereafter, pursuant
33to Section 25302 of the Public Resources Code, the commission
34shall include an evaluation of research, development, and
35deployment efforts funded by this chapter. The evaluation shall
36include all of the following:

37(1) A list of projects funded by the Alternative and Renewable
38Fuel and Vehicle Technology Fund.

39(2) The expected benefits of the projects in terms of air quality,
40petroleum use reduction, greenhouse gas emissions reduction,
P11   1technology advancement, benefit-cost assessment, and progress
2towards achieving these benefits.

3(3) The overall contribution of the funded projects toward
4promoting a transition to a diverse portfolio of clean, alternative
5transportation fuels and reduced petroleum dependency in
6California.

7(4) Key obstacles and challenges to meeting these goals
8identified through funded projects.

9(5) Recommendations for future actions.

10begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 1546.1 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

11

1546.1.  

(a) Except as provided in this section, a government
12entity shall not do any of the following:

13(1) Compel the production of or access to electronic
14communication information from a service provider.

15(2) Compel the production of or access to electronic device
16information from any person or entity other than the authorized
17possessor of the device.

18(3) Access electronic device information by means of physical
19interaction or electronic communication with the electronic device.
20This section does not prohibit the intended recipient of an electronic
21communication from voluntarily disclosing electronic
22communication information concerning that communication to a
23government entity.

24(b) A government entity may compel the production of or access
25to electronic communication information from a service provider,
26or compel the production of or access to electronic device
27information from any person or entity other than the authorized
28possessor of the device only under the following circumstances:

29(1) Pursuant to a warrant issued pursuant to Chapter 3
30(commencing with Section 1523) and subject to subdivision (d).

31(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
32(commencing with Section 629.50) of Title 15 of Part 1.

33(3) Pursuant to an order for electronic reader records issued
34pursuant to Section 1798.90 of the Civil Code.

35(4) Pursuant to a subpoena issued pursuant to existing state law,
36provided that the information is not sought for the purpose of
37investigating or prosecuting a criminal offense, and compelling
38the production of or access to the information via the subpoena is
39not otherwise prohibited by state or federal law. Nothing in this
P12   1paragraph shall be construed to expand any authority under state
2law to compel the production of or access to electronic information.

3(c) A government entity may access electronic device
4information by means of physical interaction or electronic
5communication with the device only as follows:

6(1) Pursuant to a warrant issued pursuant to Chapter 3
7(commencing with Section 1523) and subject to subdivision (d).

8(2) Pursuant to a wiretap order issued pursuant to Chapter 1.4
9(commencing with Section 629.50) of Title 15 of Part 1.

10(3) With the specific consent of the authorized possessor of the
11device.

12(4) With the specific consent of the owner of the device, only
13when the device has been reported as lost or stolen.

14(5) If the government entity, in good faith, believes that an
15emergency involving danger of death or serious physical injury to
16any person requires access to the electronic device information.

17(6) If the government entity, in good faith, believes the device
18to be lost, stolen, or abandoned, provided that the entity shall only
19access electronic device information in order to attempt to identify,
20verify, or contact the owner or authorized possessor of the device.

21(7) Except where prohibited by state or federal law, if the device
22is seized from an inmate’s possession or found in an area of a
23correctional facility under the jurisdiction of the Department of
24Corrections and Rehabilitation where inmates have access and the
25device is not in the possession of an individual and the device is
26not known or believed to be the possession of an authorized visitor.
27Nothing in this paragraph shall be construed to supersede or
28override Section 4576.

29(d) Any warrant for electronic information shall comply with
30the following:

31(1) The warrant shall describe with particularity the information
32to be seized by specifying the time periods covered and, as
33appropriate and reasonable, the target individuals or accounts, the
34applications or services covered, and the types of information
35sought.

36(2) The warrant shall require that any information obtained
37through the execution of the warrant that is unrelated to the
38objective of the warrant shall be sealed and not subject to further
39review, use, or disclosure without a court order. A court shall issue
40such an order upon a finding that there is probable cause to believe
P13   1that the information is relevant to an active investigation, or review,
2use, or disclosure is required by state or federal law.

3(3) The warrant shall comply with all other provisions of
4California and federal law, including any provisions prohibiting,
5limiting, or imposing additional requirements on the use of search
6warrants. If directed to a service provider, the warrant shall be
7accompanied by an order requiring the service provider to verify
8the authenticity of electronic information that it produces by
9providing an affidavit that complies with the requirements set forth
10in Section 1561 of the Evidence Code. Admission of that
11information into evidence shall be subject to Section 1562 of the
12Evidence Code.

13(e) When issuing any warrant or order for electronic information,
14or upon the petition from the target or recipient of the warrant or
15order, a court may, at its discretion, do any or all of the following:

16(1) Appoint a special master, as described in subdivision (d) of
17Section 1524, charged with ensuring that only information
18necessary to achieve the objective of the warrant or order is
19produced or accessed.

20(2) Require that any information obtained through the execution
21of the warrant or order that is unrelated to the objective of the
22warrant be destroyed as soon as feasible after the termination of
23the current investigation and any related investigations or
24proceedings.

25(f) A service provider may voluntarily disclose electronic
26communication information or subscriber information when that
27disclosure is not otherwise prohibited by state or federal law.

28(g) If a government entity receives electronic communication
29information voluntarily provided pursuant to subdivision (f), it
30shall destroy that information within 90 days unless one or more
31of the following circumstances apply:

32(1) The entity has or obtains the specific consent of the sender
33or recipient of the electronic communications about which
34information was disclosed.

35(2) The entity obtains a court order authorizing the retention of
36the information. A court shall issue a retention order upon a finding
37that the conditions justifying the initial voluntary disclosure persist,
38in which case the court shall authorize the retention of the
39information only for so long as those conditions persist, or there
P14   1is probable cause to believe that the information constitutes
2evidence that a crime has been committed.

3(3) The entity reasonably believes that the information relates
4to child pornography and the information is retained as part of a
5multiagency database used in the investigation of child
6pornography and related crimes.

7(h) If a government entity obtains electronic information
8pursuant to an emergency involving danger of death or serious
9physical injury to a person, that requires access to the electronic
10information without delay, the entity shall, within three days after
11obtaining the electronic information, file with the appropriate court
12an application for a warrant or order authorizing obtaining the
13electronic information or a motion seeking approval of the
14emergency disclosures that shall set forth the facts giving rise to
15the emergency, and if applicable, a request supported by a sworn
16affidavit for an order delaying notification under paragraph (1) of
17subdivision (b) of Section 1546.2. The court shall promptly rule
18on the application or motion and shall order the immediate
19destruction of all information obtained, and immediate notification
20pursuant to subdivision (a) of Section 1546.2 if such notice has
21not already been given, upon a finding that the facts did not give
22rise to an emergency or upon rejecting the warrant or order
23application on any other ground.

24(i) This section does not limit the authority of a government
25entity to use an administrative, grand jury, trial, or civil discovery
26subpoena to do any of the following:

27(1) Require an originator, addressee, or intended recipient of
28an electronic communication to disclose any electronic
29communication information associated with that communication.

30(2) Require an entity that provides electronic communications
31services to its officers, directors, employees, or agents for the
32purpose of carrying out their duties, to disclose electronic
33communication information associated with an electronic
34communication to or from an officer, director, employee, or agent
35of the entity.

36(3) Require a service provider to provide subscriber information.

begin insert

37
(j) This section does not limit the authority of the Public Utilities
38Commission or the State Energy Resources Conservation and
39Development Commission to obtain energy or water supply and
40consumption information pursuant to the powers granted to them
P15   1 under the Public Utilities Code or the Public Resources Code and
2other applicable state laws.

end insert
3begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 3401 of the end insertbegin insertPublic Resources Codeend insertbegin insert is amended
4to read:end insert

5

3401.  

(a) The proceeds of charges levied, assessed, and
6collected pursuant to this article upon the properties of every person
7operating or owning an interest in the production of a well shall
8be used exclusively for the support and maintenance of the
9department charged with the supervision of oil and gasbegin delete operations
10andend delete
begin insert operations,end insert for the State Water Resources Control Board and
11the regional water quality control boards for their activities related
12to oil and gas operations that may affect waterbegin delete resources.end deletebegin insert resources,
13and for the support of the State Air Resources Board and the Office
14of Environmental Health Hazard Assessment for their activities
15related to oil and gas operations that may affect air quality, public
16health, or public safety.end insert

17(b) Notwithstanding subdivision (a), the proceeds of charges
18levied, assessed, and collected pursuant to this article upon the
19properties of every person operating or owning an interest in the
20production of a well undergoing a well stimulation treatment, may
21be used by public entities, subject to appropriation by the
22Legislature, for all costs associated with both of the following:

23(1) Well stimulation treatments, including rulemaking and
24scientific studies required to evaluate the treatment, inspections,
25any air and water quality sampling, monitoring, and testing
26performed by public entities.

27(2) The costs of the State Water Resources Control Board and
28the regional water quality control boards in carrying out their
29responsibilities pursuant to Section 3160 and Section 10783 of the
30Water Code.

31begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 25751 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
32amended to read:end insert

33

25751.  

(a) The Renewable Resource Trust Fund is hereby
34created in the State Treasury.

35(b) The Emerging Renewable Resources Account is hereby
36established within the Renewable Resources Trust Fund.
37Notwithstanding Section 13340 of the Government Code, the
38moneys in the account are hereby continuously appropriated to
39the commission without regard to fiscal years for the following
40purposes:

P16   1(1) To close out the award of incentives for emerging
2technologies in accordance with former Section 25744, as this law
3existed prior to the enactment of the Budget Act of 2012, for which
4applications had been approved before the enactment of the Budget
5Act of 2012.

6(2) To close out consumer education activities in accordance
7with former Section 25746, as this law existed prior to the
8enactment of the Budget Act of 2012.

9(3) To provide funding for the New Solar Homes Partnership
10pursuant to paragraph (3) of subdivision (e) of Section 2851 of the
11Public Utilities Code.

12(c) The Controller shall provide to the commission funds
13pursuant to the continuous appropriation in, and for purposes
14specified in, subdivision (b).

15(d) The Controller shall provide to the commission moneys
16from the fund sufficient to satisfy all contract and grant awards
17that were made by the commission pursuant to former Sections
1825744 and 25746, and Chapter 8.8 (commencing with Section
1925780), as these laws existed prior to the enactment of the Budget
20 Act of 2012.

begin insert

21
(e) If the Public Utilities Commission determines that the
22commission should be the third-party administrator for the New
23Solar Homes Partnership Program pursuant to subparagraph (A)
24of paragraph (3) of subdivision (e) of Section 2851 of the Public
25Utilities Code, any moneys made available to fund the New Solar
26Homes Partnership Program shall be deposited into the Emerging
27Renewable Resources Account of the Renewable Resource Trust
28Fund and used for this purpose.

end insert
29begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 388 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
30to read:end insert

31

388.  

(a) Notwithstanding any other provision of law,begin delete anyend deletebegin insert aend insert
32 state agency may enter into an energy savings contract with a
33qualified energy service company for the purchase or exchange of
34thermal or electrical energy or water, or to acquire energy
35efficiencybegin delete and/orend deletebegin insert orend insert water conservationbegin delete services,end deletebegin insert services, or both
36energy efficiency and water conservation servicesend insert
for a term not
37exceeding 35 years, atbegin delete thoseend delete rates and upon those termsbegin delete that areend delete
38 approved by the agency.

39(b) The Department of General Services or any other state or
40local agency intending to enter into an energy savings contractbegin insert or
P17   1a contract for an energy retrofit projectend insert
may establish a pool of
2qualified energy service companies based on qualifications,
3experience,begin delete pricingend deletebegin insert pricing,end insert or other pertinent factors. Energy
4service contracts for individual projects undertaken by any state
5or local agency may be awarded through a competitive selection
6process to individuals or firms identified inbegin delete such aend deletebegin insert theend insert pool. The
7pool of qualified energy service companies and contractors shall
8be reestablished at least every two years or shall expire.

9(c) For purposes of this section, the following definitions apply:

begin insert

10
(1) (A) “Energy retrofit project” means a project for which the
11state or local agency works with a qualified energy service
12company to identify, develop, design, and implement energy
13conservation measures in existing facilities to reduce energy or
14water use or make more efficient use of energy or water.

end insert
begin insert

15
(B) “Energy retrofit project” does not include the erection or
16installation of a power generation system, a power purchase
17agreement, or a project utilizing a site license or lease agreement.

end insert
begin delete

18(1)

end delete

19begin insert(2)end insert “Energy savings” means a measured and verified reduction
20in fuel,begin delete energyend deletebegin insert energy,end insert or water consumption when compared to
21an established baseline of consumption.

begin delete

22(2)

end delete

23begin insert(3)end insert “Qualified energy service company” means a company with
24a demonstrated ability to provide or arrange for building or facility
25energy auditors, selection and design of appropriate energy savings
26measures, project financing, implementation of these measures,
27and maintenance and ongoing measurement of these measures as
28to ensure and verify energy savings.

29begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 388.2 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
30read:end insert

begin insert
31

begin insert388.2.end insert  

(a) For purposes of this section, the following
32definitions apply:

33
(1) “Apprenticeable occupation” means an occupation for
34which the chief has approved an apprenticeship program pursuant
35to Section 3075 of the Labor Code before January 1, 2014.

36
(2) “Chief” means the Chief of the Division of Apprenticeship
37Standards of the Department of Industrial Relations.

38
(3) “Department” means the Department of General Services.

39
(4) (A) “Energy retrofit project” means a project for which the
40state works with a qualified energy service company to identify,
P18   1develop, design, and implement energy conservation measures in
2existing facilities to reduce energy or water use or make more
3efficient use of energy or water.

4
(B) “Energy retrofit project” does not include the erection or
5installation of a power generation system, a power purchase
6agreement, or a project utilizing a site license or lease agreement.

7
(5) “Energy savings” means a measured and verified reduction
8in fuel, energy, or water consumption when compared to an
9established baseline of consumption.

10
(6) “Enforceable commitment” means an enforceable agreement
11with the department or state agency that the entity and its
12subcontractors at every tier will comply with this section.

13
(7) (A) “Qualified energy service company” means a company
14with a demonstrated ability to provide or arrange for building or
15facility energy auditors, selection and design of appropriate energy
16savings measures, project financing, implementation of these
17measures, and maintenance and ongoing measurement of these
18measures as to ensure and verify energy savings.

19
(B) An entity is not a qualified energy service company unless
20the entity has provided to the agency an enforceable commitment
21that the entity and its subcontractors at every tier will use a skilled
22and trained workforce to perform all work on the project or
23contract that falls within an apprenticeable occupation in the
24building and construction trades.

25
(8) “Skilled and trained workforce” means a workforce that
26meets all of the following conditions:

27
(A) All workers performing work in an apprenticeable
28occupation in the building and construction trades are either
29skilled journeypersons or apprentices in an apprenticeship
30program approved by the chief.

31
(B) (i) Except as provided in clause (ii), at least 60 percent of
32the skilled journeypersons employed to perform work on a contract
33or project by every contractor and each of its subcontractors at
34every tier are graduates of an apprenticeship program that was
35either approved by the chief pursuant to Section 3075 of the Labor
36Code, or an apprenticeship program located outside the state that
37is approved pursuant to the apprenticeship regulations adopted
38by the United States Secretary of Labor, for the applicable
39occupation.

P19   1
(ii) For an apprenticeable occupation in which no
2apprenticeship program had been approved by the chief before
3January 1, 1995, up to one-half of the requirement in clause (i)
4 may be satisfied by skilled journeypersons who commenced
5working in an apprenticeable occupation before the chief’s
6approval of an apprenticeship program in the county in which the
7project is located.

8
(iii) The requirements of this subparagraph are satisfied if, in
9a particular calendar month, either of the following is true:

10
(I) The percentage of the skilled journeypersons employed by
11the contractor or subcontractor to perform work on the contract
12or project is at least equal to 60 percent.

13
(II) For the hours of work performed by skilled journeypersons
14employed by the contractor or subcontractor on the contract or
15project, the percentage of hours performed by skilled
16journeypersons is at least equal to 60 percent.

17
(iv) This subparagraph does not apply to a contractor or
18subcontractor if, during the calendar month, the contractor or
19subcontractor employs skilled journeypersons to perform fewer
20than 10 hours of work on the contract or project.

21
(v) This subparagraph does not apply to a subcontractor if both
22of the following are true:

23
(I) The subcontractor is not a listed subcontractor in the
24investment grade audit or a substitute for a listed subcontractor.

25
(II) The subcontract does not exceed 12 of 1 percent of the price
26of the prime contract.

27
(9) “Skilled journeyperson” means a worker who is being paid
28at least the prevailing rate or per diem wages published by the
29Department of Industrial Relations for the occupation and
30geographic area and who either:

31
(A) Graduated from an apprenticeship program that was either
32approved by the chief pursuant to Section 3075 of the Labor Code,
33or an apprenticeship program located outside the state that is
34approved pursuant to the apprenticeship regulations adopted by
35the United States Secretary of Labor, for the applicable occupation.

36
(B) Has at least as many hours of on-the-job training experience
37in the applicable occupation as would be required to graduate
38from an apprenticeship program for the applicable occupation
39that is approved by the chief.

P20   1
(b) (1) The department or any other state agency intending to
2enter into an energy savings contract for an energy retrofit project
3may establish one or more pools of qualified energy services
4companies based on qualification, experience, pricing, or other
5pertinent factors. The department or state agency may select a
6qualified energy service company identified in the pool for a
7contract for a specific energy retrofit project on a rotational basis.

8
(2) The department or state agency has the exclusive authority
9to reject the plan or proposal of a qualified energy service company
10selected for an energy retrofit project pursuant to paragraph (1)
11and may continue the selection process until a satisfactory proposal
12is identified.

13
(c) (1) A qualified energy service company working on an
14energy retrofit project shall submit to the department or state
15agency, as appropriate, on a monthly basis, a report demonstrating
16compliance with this section.

17
(2) If the qualified energy service company fails to submit the
18 monthly report or submits a report that is incomplete, the
19department or state agency, as appropriate, shall withhold further
20payments until a complete report is submitted.

21
(3) The monthly report is a public record under the California
22Public Records Act (Chapter 3.5 (commencing with Section 6250)
23of Division 7 of Title 1 of the Government Code) and shall be
24available for public inspection.

25
(d) Prior to performing an investment grade audit, the
26department or other state agency shall provide a public notification
27that includes the project location, assigned energy services
28company, and the appropriate contact information on the
29department’s Internet Web site.

30
(e) Subparagraph (B) of paragraph (7) of subdivision (a) and
31subdivision (c) do not apply if either of the following applies:

32
(1) The department or state agency, as appropriate, has entered
33into a project labor agreement, as defined in paragraph (1) of
34subdivision (b) of Section 2500 of the Public Contract Code, that
35will bind all contractors and subcontractors performing work on
36the project or contract and the entity agrees to be bound by that
37project labor agreement.

38
(2) The entity has entered into a project labor agreement, as
39defined in paragraph (1) of subdivision (b) of Section 2500 of the
P21   1Public Contract Code, that will bind the entity and all contractors
2and subcontractors at every tier performing the project or contract.

3
(f) Subparagraph (B) of paragraph (7) of subdivision (a) and
4subdivision (c) do not apply to work performed by the California
5Conservation Corps that is nontrades and nonconstruction related.

6
(g) This section is not intended to waive other terms and
7conditions applicable to a state contract for an energy retrofit
8project.

9
(h) This section shall remain in effect only until January 1, 2020,
10and as of that date is repealed, unless a later enacted statute, that
11is enacted before January 1, 2020, deletes or extends that date.

end insert
12begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 399.20 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
13to read:end insert

14

399.20.  

(a) It is the policy of this state and the intent of the
15Legislature to encourage electrical generation from eligible
16renewable energy resources.

17(b) As used in this section, “electric generation facility” means
18an electric generation facility located within the service territory
19of, and developed to sell electricity to, an electrical corporation
20that meets all of the following criteria:

21(1) Has an effective capacity of not more than three megawatts.

22(2) Is interconnected and operates in parallel with the electrical
23transmission and distribution grid.

24(3) Is strategically located and interconnected to the electrical
25transmission and distribution grid in a manner that optimizes the
26deliverability of electricity generated at the facility to load centers.

27(4) Is an eligible renewable energy resource.

28(c) Every electrical corporation shall file with the commission
29a standard tariff for electricity purchased from an electric
30generation facility. The commission may modify or adjust the
31requirements of this section for any electrical corporation with less
32than 100,000 service connections, as individual circumstances
33merit.

34(d) (1) The tariff shall provide for payment for every
35kilowatthour of electricity purchased from an electric generation
36facility for a period of 10, 15, or 20 years, as authorized by the
37commission. The payment shall be the market price determined
38by the commission pursuant to paragraph (2) and shall include all
39current and anticipated environmental compliance costs, including,
40but not limited to, mitigation of emissions of greenhouse gases
P22   1and air pollution offsets associated with the operation of new
2generating facilities in the local air pollution control or air quality
3management district where the electric generation facility is
4located.

5(2) The commission shall establish a methodology to determine
6the market price of electricity for terms corresponding to the length
7of contracts with an electric generation facility, in consideration
8of the following:

9(A) The long-term market price of electricity for fixed price
10contracts, determined pursuant to an electrical corporation’s general
11procurement activities as authorized by the commission.

12(B) The long-term ownership, operating, and fixed-price fuel
13costs associated with fixed-price electricity from new generating
14facilities.

15(C) The value of different electricity products including
16baseload, peaking, and as-available electricity.

17(3) The commission may adjust the payment rate to reflect the
18value of every kilowatthour of electricity generated on a
19time-of-delivery basis.

20(4) The commission shall ensure, with respect to rates and
21charges, that ratepayers that do not receive service pursuant to the
22tariff are indifferent to whether a ratepayer with an electric
23generation facility receives service pursuant to the tariff.

24(e) An electrical corporation shall provide expedited
25interconnection procedures to an electric generation facility located
26on a distribution circuit that generates electricity at a time and in
27a manner so as to offset the peak demand on the distribution circuit,
28if the electrical corporation determines that the electric generation
29facility will not adversely affect the distribution grid. The
30commission shall consider and may establish a value for an electric
31generation facility located on a distribution circuit that generates
32electricity at a time and in a manner so as to offset the peak demand
33on the distribution circuit.

34(f) (1) An electrical corporation shall make the tariff available
35to the owner or operator of an electric generation facility within
36the service territory of the electrical corporation, upon request, on
37a first-come-first-served basis, until the electrical corporation meets
38its proportionate share of a statewide cap of 750 megawatts
39cumulative rated generation capacity served under this section and
40Section 387.6. The proportionate share shall be calculated based
P23   1on the ratio of the electrical corporation’s peak demand compared
2to the total statewide peak demand.

3(2) By June 1, 2013, the commission shall, in addition to the
4750 megawatts identified in paragraph (1), direct the electrical
5corporations to collectively procure at least 250 megawatts of
6cumulative rated generating capacity from developers of bioenergy
7projects that commence operation on or after June 1, 2013. The
8commission shall, for each electrical corporation, allocate shares
9of the additional 250 megawatts based on the ratio of each electrical
10corporation’s peak demand compared to the total statewide peak
11demand. In implementing this paragraph, the commission shall do
12all of the following:

13(A) Allocate the 250 megawatts identified in this paragraph
14among the electrical corporations based on the following
15categories:

16(i) For biogas from wastewater treatment, municipal organic
17waste diversion, food processing, and codigestion, 110 megawatts.

18(ii) For dairy and other agricultural bioenergy, 90 megawatts.

19(iii) For bioenergy using byproducts of sustainable forest
20management, 50 megawatts. Allocations under this category shall
21be determined based on the proportion of bioenergy that sustainable
22forest management providers derive from sustainable forest
23management in fire threat treatment areas, as designated by the
24Department of Forestry and Fire Protection.

25(B) Direct the electrical corporations to develop standard
26contract terms and conditions that reflect the operational
27characteristics of the projects, and to provide a streamlined
28contracting process.

29(C) Coordinate, to the maximum extent feasible, any incentive
30or subsidy programs for bioenergy with the agencies listed in
31subparagraph (A) of paragraph (3) in order to provide maximum
32benefits to ratepayers and to ensure that incentives are used to
33reduce contract prices.

34(D) The commission shall encourage gas and electrical
35corporations to develop and offer programs and services to facilitate
36development of in-state biogas for a broad range of purposes.

37(3) (A) The commission, in consultation with the State Energy
38Resources Conservation and Development Commission, the State
39Air Resources Board, the Department of Forestry and Fire
40Protection, the Department of Food and Agriculture, and the
P24   1Department of Resources Recycling and Recovery, may review
2the allocations of the 250 additional megawatts identified in
3paragraph (2) to determine if those allocations are appropriate.

4(B) If the commission finds that the allocations of the 250
5additional megawatts identified in paragraph (2) are not
6appropriate, the commission may reallocate the 250 megawatts
7among the categories established in subparagraph (A) of paragraph
8(2).

begin insert

9
(4) (A) A project identified in clause (iii) of subparagraph (A)
10of paragraph (2) is eligible, in regards to interconnection, for the
11tariff established to implement paragraph (2) or to participate in
12any program or auction established to implement paragraph (2),
13if it meets at least one of the following requirements:

end insert
begin insert

14
(i) The project is already interconnected.

end insert
begin insert

15
(ii) The project has been found to be eligible for interconnection
16pursuant to the fast track process under the relevant tariff.

end insert
begin insert

17
(iii) A system impact study or other interconnection study has
18been completed for the project under the relevant tariff, and there
19was no determination in the study that, with the identified
20interconnection upgrades, if any, a condition specified in
21paragraph (2), (3), or (4) of subdivision (n) would exist. Such a
22project is not required to have a pending, active interconnection
23application to be eligible.

end insert
begin insert

24
(B) For a project meeting the eligibility requirements pursuant
25to clause (iii) of subparagraph (A) of this paragraph, both of the
26following apply:

end insert
begin insert

27
(i) The project is hereby deemed to be able to interconnect
28within the required time limits for the purpose of determining
29eligibility for the tariff.

end insert
begin insert

30
(ii) The project shall submit a new application for
31interconnection within 30 days of execution of a standard contract
32pursuant to the tariff if it does not have a pending, active
33interconnection application or a completed interconnection. For
34those projects, the time to achieve commercial operation shall
35begin to run from the date when the new system impact study or
36other interconnection study is completed rather than from the date
37of execution of the standard contract.

end insert
begin delete

38(4)

end delete

39begin insert(5)end insert For the purposes of this subdivision, “bioenergy” means
40biogas and biomass.

P25   1(g) The electrical corporation may make the terms of the tariff
2available to owners and operators of an electric generation facility
3in the form of a standard contract subject to commission approval.

4(h) Every kilowatthour of electricity purchased from an electric
5generation facility shall count toward meeting the electrical
6corporation’s renewables portfolio standard annual procurement
7targets for purposes of paragraph (1) of subdivision (b) of Section
8399.15.

9(i) The physical generating capacity of an electric generation
10facility shall count toward the electrical corporation’s resource
11adequacy requirement for purposes of Section 380.

12(j) (1) The commission shall establish performance standards
13for any electric generation facility that has a capacity greater than
14one megawatt to ensure that those facilities are constructed,
15operated, and maintained to generate the expected annual net
16production of electricity and do not impact system reliability.

17(2) The commission may reduce the three megawatt capacity
18limitation of paragraph (1) of subdivision (b) if the commission
19finds that a reduced capacity limitation is necessary to maintain
20system reliability within that electrical corporation’s service
21territory.

22(k) (1) Any owner or operator of an electric generation facility
23that received ratepayer-funded incentives in accordance with
24Section 379.6 of this code, or with Section 25782 of the Public
25Resources Code, and participated in a net metering program
26pursuant to Sections 2827, 2827.9, and 2827.10 of this code prior
27to January 1, 2010, shall be eligible for a tariff or standard contract
28filed by an electrical corporation pursuant to this section.

29(2) In establishing the tariffs or standard contracts pursuant to
30this section, the commission shall consider ratepayer-funded
31incentive payments previously received by the generation facility
32pursuant to Section 379.6 of this code or Section 25782 of the
33Public Resources Code. The commission shall require
34reimbursement of any funds received from these incentive
35programs to an electric generation facility, in order for that facility
36to be eligible for a tariff or standard contract filed by an electrical
37corporation pursuant to this section, unless the commission
38determines ratepayers have received sufficient value from the
39incentives provided to the facility based on how long the project
P26   1has been in operation and the amount of renewable electricity
2previously generated by the facility.

3(3) A customer that receives service under a tariff or contract
4approved by the commission pursuant to this section is not eligible
5to participate in any net metering program.

6(l) An owner or operator of an electric generation facility
7electing to receive service under a tariff or contract approved by
8the commission shall continue to receive service under the tariff
9or contract until either of the following occurs:

10(1) The owner or operator of an electric generation facility no
11longer meets the eligibility requirements for receiving service
12pursuant to the tariff or contract.

13(2) The period of service established by the commission pursuant
14to subdivision (d) is completed.

15(m) Within 10 days of receipt of a request for a tariff pursuant
16to this section from an owner or operator of an electric generation
17facility, the electrical corporation that receives the request shall
18post a copy of the request on its Internet Web site. The information
19posted on the Internet Web site shall include the name of the city
20in which the facility is located, but information that is proprietary
21and confidential, including, but not limited to, address information
22beyond the name of the city in which the facility is located, shall
23be redacted.

24(n) An electrical corporation may deny a tariff request pursuant
25to this section if the electrical corporation makes any of the
26following findings:

27(1) The electric generation facility does not meet the
28requirements of this section.

29(2) The transmission or distribution grid that would serve as the
30point of interconnection is inadequate.

31(3) The electric generation facility does not meet all applicable
32state and local laws and building standards and utility
33interconnection requirements.

34(4) The aggregate of all electric generating facilities on a
35distribution circuit would adversely impact utility operation and
36load restoration efforts of the distribution system.

37(o) Upon receiving a notice of denial from an electrical
38corporation, the owner or operator of the electric generation facility
39denied a tariff pursuant to this section shall have the right to appeal
40that decision to the commission.

P27   1(p) In order to ensure the safety and reliability of electric
2generation facilities, the owner of an electric generation facility
3receiving a tariff pursuant to this section shall provide an inspection
4and maintenance report to the electrical corporation at least once
5every other year. The inspection and maintenance report shall be
6prepared at the owner’s or operator’s expense by a
7California-licensed contractor who is not the owner or operator of
8the electric generation facility. A California-licensed electrician
9shall perform the inspection of the electrical portion of the
10generation facility.

11(q) The contract between the electric generation facility
12receiving the tariff and the electrical corporation shall contain
13provisions that ensure that construction of the electric generating
14facility complies with all applicable state and local laws and
15building standards, and utility interconnection requirements.

16(r) (1) All construction and installation of facilities of the
17electrical corporation, including at the point of the output meter
18or at the transmission or distribution grid, shall be performed only
19by that electrical corporation.

20(2) All interconnection facilities installed on the electrical
21corporation’s side of the transfer point for electricity between the
22electrical corporation and the electrical conductors of the electric
23generation facility shall be owned, operated, and maintained only
24by the electrical corporation. The ownership, installation, operation,
25reading, and testing of revenue metering equipment for electric
26generating facilities shall only be performed by the electrical
27corporation.

28begin insert

begin insertSEC. 10.end insert  

end insert
begin insert

The Legislature finds and declares all of the
29following:

end insert
begin insert

30
(a) California imports 91 percent of its natural gas, which is
31responsible for 25 percent of the state’s emissions of greenhouse
32gases.

end insert
begin insert

33
(b) California made a commitment to address climate change
34with the California Global Warming Solutions Act of 2006
35(Division 25.5 (commencing with Section 38500) of the Health
36and Safety Code) and the adoption of a comprehensive strategy
37to reduce emissions of short-lived climate pollutants (Chapter 4.2
38(commencing with Section 39730) of Part 2 of Division 26 of the
39Health and Safety Code). For California to meet its goals for
40reducing emissions of greenhouse gases and short-lived climate
P28   1pollutants, the state must reduce emissions from the natural gas
2sector and increase the production and distribution of renewable
3and low-carbon gas supplies.

end insert
begin insert

4
(c) Biomethane is gas generated from organic waste through
5anaerobic digestion, gasification, pyrolysis, or other conversion
6technology that converts organic matter to gas. Biomethane may
7be produced from multiple sources, including agricultural waste,
8forest waste, landfill gas, wastewater treatment byproducts, and
9diverted organic waste.

end insert
begin insert

10
(d) Biomethane provides a sustainable and clean alternative to
11natural gas. If 10 percent of California’s natural gas use were to
12be replaced with biomethane use, emissions of greenhouse gases
13would be reduced by tens of millions of metric tons of carbon
14dioxide equivalent every year.

end insert
begin insert

15
(e) Investing in biomethane would create cobenefits, including
16flexible generation of electricity from a renewable source that is
17available 24 hours a day, reduction of fossil fuel use, reduction of
18air and water pollution, and new jobs.

end insert
begin insert

19
(f) Biomethane can also be used as transportation fuel or
20injected into natural gas pipelines for other uses. The most
21appropriate use of biomethane varies depending on the source,
22proximity to existing natural gas pipeline injection points or large
23vehicle fleets, and the circumstances of existing facilities.

end insert
begin insert

24
(g) The biomethane market has been slow to develop in
25California because the collection, purification, and pipeline
26injection of biomethane can be costly.

end insert
begin insert

27
(h) Biomethane is poised to play a key role in future natural
28gas and hydrogen fuel markets as a blendstock that can
29significantly reduce the carbon footprint of these two fossil-based
30alternative fuels.

end insert
begin insert

31
(i) Biomethane is one of the most promising alternative vehicle
32fuels because it generates the least net emissions of greenhouse
33gases. According to the low-carbon fuel standard regulations
34(Subarticle 7 (commencing with Section 95480) of Article 4 of
35Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
36California Code of Regulations) adopted by the State Air Resources
37Board, vehicles running on biomethane generate significantly
38lower emissions of greenhouse gases than vehicles running on
39electricity or fossil fuel-derived hydrogen.

end insert
begin insert

P29   1
(j) The California Council on Science and Technology was
2established by California academic research institutions, including
3the University of California, the University of Southern California,
4the California Institute of Technology, Stanford University, and
5the California State University, and was organized as a nonprofit
6corporation pursuant to Section 501(c)(3) of the Internal Revenue
7Code, in response to Assembly Concurrent Resolution No. 162
8(Resolution Chapter 148 of the Statutes of 1988).

end insert
begin insert

9
(k) The California Council on Science and Technology was
10uniquely established at the request of the Legislature for the
11specific purpose of offering expert advice to state government on
12public policy issues significantly related to science and technology.

end insert
begin insert

13
(l) It is in the public’s interests, and in the interest of ratepayers
14of the state’s gas corporations, that the policies and programs
15adopted by the Public Utilities Commission be guided by the best
16science reasonably available.

end insert
17begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 784.1 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
18to read:end insert

begin insert
19

begin insert784.1.end insert  

(a) The Legislature requests that the California Council
20on Science and Technology undertake and complete a study
21analyzing the regional and gas corporation specific issues relating
22to minimum heating value and maximum siloxane specifications
23for biomethane before it can be injected into common carrier gas
24pipelines, including those specifications adopted in Sections 4.4.3.3
25and 4.4.4 of commission Decision 14-01-034 (January 16, 2014),
26Decision Regarding the Biomethane Implementation Tasks in
27Assembly Bill 1900. The study shall consider and evaluate other
28states’ standards, the source of biomethane, the dilution of
29biomethane after it is injected into the pipeline, the equipment and
30technology upgrades required to meet the minimum heating value
31specifications, including the impacts of those specifications on the
32cost, volume of biomethane sold, equipment operation, and safety.
33The study shall also consider whether different sources of biogas
34should have different standards or if all sources should adhere to
35one standard for the minimum heating value and maximum
36permissible level of siloxanes. The study shall develop the best
37science reasonably available and not merely be a literature review.
38In order to meet the state’s goals for reducing emissions of
39greenhouse gases and short-lived climate pollutants and the state’s
40goals for promoting the use of renewable energy resources in place
P30   1of burning fossil fuels, the California Council on Science and
2Technology, if it agrees to undertake and complete the study, shall
3complete the study within nine months of entering into a contract
4to undertake and complete the study.

5
(b) (1) If the California Council on Science and Technology
6agrees to undertake and complete the study pursuant to subdivision
7(a), the commission shall require each gas corporation operating
8common carrier pipelines in California to proportionately
9contribute to the expenses to undertake the study pursuant to
10Sections 740 and 740.1. The commission may modify the monetary
11incentives made available pursuant to commission Decision
1215-06-029 (June 11, 2015), Decision Regarding the Costs of
13Compliance with Decision 14-01-034 and Adoption of Biomethane
14Promotion Policies and Program, to allocate some of the moneys
15that would be made available for incentives to instead be made
16available to pay for the costs of the study so as to not further
17burden ratepayers with additional expense.

18
(2) The commission’s authority pursuant to paragraph (1) shall
19apply notwithstanding whether the gas corporation has proposed
20the program pursuant to Section 740.1.

21
(c) If the California Council on Science and Technology agrees
22to undertake and complete the study pursuant to subdivision (a),
23within six months of its completion, the commission shall reevaluate
24its requirements and standards adopted pursuant to Section 25421
25of the Health and Safety Code relative to the requirements and
26standards for biomethane to be injected into common carrier
27pipelines and, if appropriate, change those requirements and
28standards or adopt new requirements and standards, giving due
29deference to the conclusions and recommendations made in the
30study by the California Council on Science and Technology.

end insert
31begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 2834 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

begin delete
32

2834.  

This chapter shall remain in effect only until January 1,
332019, and as of that date is repealed, unless a later enacted statute,
34that is enacted before January 1, 2019, deletes or extends that date.

end delete
35begin insert

begin insertSEC. 13.end insert  

end insert
begin insert

(a) By March 31, 2017, the Public Utilities
36Commission shall report to the relevant policy and fiscal
37committees of the Legislature on its business process inventory
38efforts. The report shall include documentation and measurement
39of commission processes, including administrative and monitoring
40processes shaped by law and judicial review, program performance
P31   1and communications pursuant to the commission’s rules and
2procedures, and internal processes related to administration and
3managing human resources.

end insert
begin insert

4
(b) The report shall be submitted in compliance with Section
59795 of the Government Code.

end insert
begin insert

6
(c) Pursuant to Section 10231.5 of the Government Code, this
7section is repealed on April 1, 2021.

end insert
8begin insert

begin insertSEC. 14.end insert  

end insert
begin insert

(a) By March 31, 2017, the Public Utilities
9Commission shall report to the relevant policy and fiscal
10committees of the Legislature on options to locate operations and
11staff outside of the commission’s San Francisco headquarters. The
12report shall explore options for leveraging additional facilities in
13areas of the state, including Sacramento, that would allow the
14commission to collaborate with other state entities and provide
15staff more opportunities for training, career development, and
16exchange placements with other state entities. The report shall do
17both of the following:

end insert
begin insert

18
(1) Consider categories of operations in different offices.

end insert
begin insert

19
(2) Analyze recruitment and retention, salary disparities by
20location based on duty statements, and costs associated with using
21locations outside of San Francisco with no, or minimal, disruption
22of current commission employees.

end insert
begin insert

23
(b) The commission shall conduct one or more public workshops
24to obtain suggestions, concerns, ideas, and comments from
25stakeholders and interested members of the public in furtherance
26of the purpose of the report.

end insert
begin insert

27
(c) (1) The report shall be submitted in compliance with Section
289795 of the Government Code.

end insert
begin insert

29
(2) Pursuant to Section 10231.5 of the Government Code, this
30section is repealed on April 1, 2021.

end insert
31begin insert

begin insertSEC. 15.end insert  

end insert
begin insert

The sum of two hundred seventy-five thousand dollars
32($275,000) is hereby appropriated from the Appliance Efficiency
33Enforcement Subaccount in the Energy Resources Programs
34Account to the State Energy Resources Conservation and
35Development Commission to support the Title 20 Appliance
36Efficiency Standards Compliance Assistance and Enforcement
37Program.

end insert
38begin insert

begin insertSEC. 16.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
39to Section 6 of Article XIII B of the California Constitution because
40the only costs that may be incurred by a local agency or school
P32   1district will be incurred because this act creates a new crime or
2infraction, eliminates a crime or infraction, or changes the penalty
3for a crime or infraction, within the meaning of Section 17556 of
4the Government Code, or changes the definition of a crime within
5the meaning of Section 6 of Article XIII B of the California
6Constitution.

end insert
7begin insert

begin insertSEC. 17.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
8to the Budget Bill within the meaning of subdivision (e) of Section
912 of Article IV of the California Constitution, has been identified
10as related to the budget in the Budget Bill, and shall take effect
11immediately.

end insert
begin delete
12

SECTION 1.  

It is the intent of the Legislature to enact statutory
13changes, relating to the Budget Act of 2016.

end delete


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