BILL NUMBER: SB 1298	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   JUNE 26, 2000
	AMENDED IN SENATE   MAY 28, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY    Committee on Energy, Utilities and
Communications (Senators Bowen (Chair), Alarcon, Baca, Brulte,
Hughes, Kelley, Mountjoy, Peace, Solis, Speier, and Vasconcellos)
  Senators Bowen and Peace 

                        MARCH 1, 1999

    An act relating to energy resources, and making an
appropriation therefor.   An act to add Section 41514.9
to the Health and Safety Code, relating to air pollution. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1298, as amended,  Committee on Energy, Utilities and
Communications  Bowen  .   Energy
resources:  federal oil overcharge funds   Air
emissions:  distributed generation  . 
   (1) Existing law requires the State Air Resources Board to
consider and adopt specified findings before adopting rules or
regulations that would affect the operation of existing powerplants.
Under existing law, except as specified, any person who violates any
statute, rule, regulation, permit, or order of the state board or of
an air pollution control strict or an air quality management
district relating to air quality, as provided, is guilty of a
misdemeanor and is subject to a fine, imprisonment, or both.
   This bill would require the state board to determine the best
available control technology and adopt emission standards for
distributed generation technologies, as defined, for which the state
board, in cooperation with the State Energy Resources Conservation
and Development Commission, makes a specified determination.
   The bill would require the state board to develop a certification
program for distributed generators that are exempt from district
permitting requirements and would authorize the state board to
establish a certification program for larger distributed generators
that are not exempt from those permitting requirements.  The bill
would authorize the board to establish fees, to be assessed on
persons seeking certification as a distributed generator, for
purposes of administering the bill's provisions.
   Since a violation of the regulations adopted pursuant to the bill
would be a crime, the bill would impose a state-mandated local
program.
  (2) 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.
   This bill would provide that no reimbursement is required by this
act for a specified reason.   
   Under existing law, funds in the Petroleum Violation Escrow
Account, as defined in federal law, consisting of federal oil
overcharge funds, have been disbursed to this state by the federal
government and deposited in the Federal Trust Fund in the State
Treasury, a continuously appropriated fund.
   This bill would appropriate $14,000,000 to the State Energy
Resources Conservation and Development Commission for specified
energy conservation projects and programs in the state.
   The funds would be disbursed by the Controller, subject to
approval by the Director of Finance as to which court judgment or
federal agency order is the proper source of the funds. 
   Vote:  majority.  Appropriation:   yes   no
 .  Fiscal committee:  yes. State-mandated local program:
 no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  (a) Notwithstanding Sections 13340  
  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Distributed generation can contribute to helping California
meet the energy requirements of its citizens and businesses.
   (b) Certain distributed generation technologies can create
significant air emissions.
   (c) A clear set of rules and regulations regarding the air quality
impacts of distributed generation will facilitate the deployment of
distributed generation.
   (d) The absence of clear rules and regulations creates uncertainty
that may hinder the deployment of distributed generation.
   (e) It is in the public interest to encourage the deployment of
distributed generation technology in a way that has a positive effect
on air quality.
  SEC. 2.  Section 41514.9 is added to the Health and Safety Code, to
read:
   41514.9.  (a) (1) On or before January 1, 2003, the state board
shall determine the best available control technology and adopt
emission standards for distributed generation technologies that the
state board, in cooperation with the State Energy Resources
Conservation and Development Commission, determines to have a
significant potential for market penetration in the state.
   (2) The state board shall update the emission standards adopted
pursuant to paragraph (1) as needed to reflect evolving distributed
generation technologies.
   (3) The state board shall consider, in adopting emission standards
pursuant to this subdivision, whether the best available control
technology should result in emission levels at least equal to those
of the most recently constructed central station powerplants in the
state.
   (b) The state board shall develop a certification program for
distributed generators that are exempt from district permitting
requirements. If the state board finds that it is in the public
interest, the state board may establish a certification program for
larger distributed generators, as determined by the state board, that
are not exempt from district permitting requirements.
   (c) The state board may establish a schedule of fees for purposes
of this section to be assessed on persons seeking certification as a
distributed generator.  The fees charged, in the aggregate, shall not
exceed the reasonable cost to the state board of administering the
certification program and adopting the regulations required by this
section.
   (d) In establishing the best available control technology pursuant
to subdivision (a) and a certification program pursuant to
subdivision (b), the state board shall balance the public interest in
obtaining a reliable electric system with the need to ensure that
emissions from distributed generation plants are as clean as
possible.
   (e) As used in this section, the following definitions shall
apply:
   (1) "Best available control technology" has the same meaning as
defined in Section 40405.
   (2) "Distributed generation" means electric generation located
near the place of use.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.  
 and 16361 of the Government Code, and to the extent
permitted by federal law, the sum of fourteen million dollars
($14,000,000) of the money in the Federal Trust Fund, created by
Section 16360 of the Government Code, received by the state from
federal oil overcharge funds in the Petroleum Violation Escrow
Account, as defined by Section 155 of the Further Continuing
Appropriations Act of 1983 (P.L. 97-377) or other federal law, and
consisting of federal oil overcharge funds available pursuant to
court judgments or federal agency orders,  is hereby appropriated to
the State Energy Resources Conservation and Development Commission
for expenditure for energy conservation projects and programs in the
state, including, but not limited to, all of the following:
   (1) The sum of two million five hundred thousand ($2,500,000) for
grants that are available to all local air quality management
districts, on a matching basis, for local programs to buy down the
cost of zero-emission vehicles and infrastructure.
   (2) The sum of one million dollars ($1,000,000) for grants that
are available to all counties and cities in California, on a
competitive basis, to buy down the cost of acquiring zero-emission
vehicles and infrastructure for use in their own fleets.
   (3) The sum of five hundred thousand dollars ($500,000) for grants
to the Department of General Services, the Senate Committee on
Rules, and the Assembly Committee on Rules to acquire zero-emission
vehicles and related recharging infrastructure for use in their own
vehicle fleets.
   (4) The sum of two hundred fifty thousand dollars ($250,000) to
the San Joaquin Council of Governments for a regional bicycle
project.
   (b) The money appropriated pursuant to subdivision (a) shall be
disbursed by the Controller, subject to the approval by the Director
of Finance as to which court judgment or federal agency is the proper
source of those funds.