BILL ANALYSIS                                                                                                                                                                                                    

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          840 (Committee on Budget and Fiscal Review)

          As Amended  June 14, 2016

          Majority vote.  Budget Bill Appropriation Takes Effect  

          SENATE VOTE:  Vote not relevant

          SUMMARY:  Contains statutory changes related to energy necessary  
          to implement the 2016-17 Budget package.  Specifically this  

          1)Defines "oil," as currently specified for under the Elder  
            California Pipeline Safety Act of 1981, to mean petroleum,  
            petroleum products, anhydrous ammonia, and ethanol.
          2) Requires the State Fire Marshall to provide to the  
            Legislature an annual report containing specified information  
            regarding the inspection of intrastate pipelines that  
            transport hazardous materials.

          3)Repeals the requirement that $1 million be transferred  
            annually from the Public Interest Research, Development, and  
            Demonstration Fund to the Alternative and Renewable Fuel and  
            Vehicle Technology Fund. 


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          4)Authorizes the use of Oil, Gas, and Geothermal Administrative  
            Fund (OGGAF) for the State Air Resources Control Board and  
            Office of Environmental Health Hazard Assessment for their  
            activities related to oil and gas operations that may affect  
            air quality, public health and public safety.

          5)Establishes interconnection requirements for certain bioenergy  
            projects from which generation capacity is procured, as  
            related to biomass projects.

          6) Requires the California Public Utilities Commission (CPUC) to  
            report to the Legislature on options to locate operations and  
            staff outside the commission's San Francisco Headquarters. 

          7)Requires the CPUC to report on an inventory of agency business  

          8)Repeals the sunset that would have ended the requirement that  
            investor-owned utilities to offer the Green Tariff Shared  
            Renewable Program to customers.  The program will now end when  
            the 600 megawatt cap of the program is reached.

          9)Requests a study from the California Council on Science and  
            Technology on technical aspects of biomethane related to its  
            delivery in common carrier pipelines and impacts on end uses  
            of biomethane. 

          10)Clarifies that a search warrant is not necessary for the  
            collection of data related to smart meters.

          11)Authorizes a state department or agency to contract for an  
            energy retrofit program and requires any company performing  


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            this service use apprenticeable occupations in building and  
            construction trades.

          12)Clarifies that if the CPUC order a continuation of the New  
            Solar Home Partnership Program and determines that the  
            California Energy Commission be the third party administrator,  
            that funds should be made available for this purpose. 

          FISCAL EFFECT:  The bill contains an appropriation of $275,000  
          to the California Energy Commission for appliance efficiency  
          standards, compliance assistance, and enforcement.

          COMMENTS:  This energy trailer bill includes provisions agreed  
          to as part of the 2106 budget package.

          Analysis Prepared by:                                             
                          Christian Griffith / BUDGET / (916)319-2746  FN: