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<ns0:Id>20250AB__250899INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2508</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Hoover</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Hoover</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Section 25711 of the Public Resources Code, and to amend Sections 379.6, 381, 381.1, 384.5, 399.4, 399.8, 399.20.3, 589, 718, 739.3, 2788, and 2851 of, and to add Section 318 to, the Public Utilities Code, relating to energy.</ns0:Title>
<ns0:RelatingClause>energy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public Utilities Public Purpose Programs Fund.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, the commission administers, or otherwise oversees, various public purpose programs, including energy efficiency and conservation programs, cost-effective energy efficiency programs, rate assistance programs for eligible food banks, and home insulation financial assistance programs. Under existing law, those programs are generally funded through a charge on electrical service, which is collected through customer rates.</html:p>
<html:p>This bill would establish the Public Utilities Public Purpose Programs Fund. The bill would require the commission, upon appropriation by the Legislature, to allocate the moneys in the fund to fund certain public purpose programs and programs administered by electrical regional
energy networks, as specified. The bill would require the Controller to transfer an unspecified sum on July 1 of each fiscal year, commencing with the 2026–27 fiscal year, from the Greenhouse Gas Reduction Fund to the fund.</html:p>
<html:p>Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because certain of the above provisions would be part of the act and a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no
reimbursement is required by this act for a specified reason.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_2DAE4800-9A93-4BB4-832D-A8E8517654A4">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Customers of electrical corporations pay for public purpose programs through their electricity rates. These costs would more appropriately be funded by all taxpayers because the benefits accrue to society at large, not only to electrical customers or the electrical system.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Electricity rates are increasing in part due to the increasing costs of state climate change mitigation policies and programs administered by electrical corporations or third parties, funded by electrical customers, and mandated by statute or by the commission to reduce consumption of electricity or to provide
environmental, health, and other benefits that accrue to all taxpayers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Public purpose programs’ costs, such as low-income customer bill support and low-income weatherization assistance, represent a significant portion of these electricity rates and contribute to the increases in electricity rates.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In order to provide some electricity rate relief and to more equitably allocate the costs of programs that benefit all taxpayers, not just utility customers, it is the intent of the Legislature to appropriate Greenhouse Gas Reduction Fund moneys sufficient to pay for certain electrical corporation public purpose programs and public purpose programs administered by third parties that are funded through electricity rates.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
It is the intent of the Legislature that on and after January 1,
2024, certain current and future costs for public purpose programs funded by electrical customers, whether the program is required pursuant to the Public Utilities Code, pursuant to other statutes, or by order or decision of the Public Utilities Commission, be authorized for recovery through the Greenhouse Gas Reduction Fund.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 25711 of the
<ns0:DocName>Public Resources Code</ns0:DocName>
is amended to read:
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<ns0:Num>25711.</ns0:Num>
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<ns0:Content>
<html:p>For purposes of implementing this chapter, the Electric Program Investment Charge Fund is hereby created in the State Treasury.</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The commission shall administer the fund.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Controller shall, as directed by the commission, disburse moneys in the fund for purposes of this chapter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission may use moneys in the fund for the administration of this chapter, as authorized by the Public Utilities Commission and appropriated by the Legislature in the annual Budget Act.
</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 318 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>318.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, “public purpose programs” means all of the following programs, except as specified in paragraph (2):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The programs funded through an electrical corporation’s public purpose program rate component as of December 31, 2023.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Other programs determined by the commission, based on a record developed in an open proceeding before the commission through which electrical corporations and other parties have an opportunity to participate, to provide public benefits.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Public purpose programs” does not include the Family Electric Rate Assistance program described in
Section 739.12 or the California Alternate Rates for Energy (CARE) program established pursuant to Section 739.1.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In order to ensure that the residents of this state continue to receive safe, reliable, affordable, and environmentally sustainable electrical service, it is the policy of this state and the intent of the Legislature that low-income bill support continue to be provided and that prudent investments in energy efficiency, renewable energy, research, development, and demonstration continue to be made.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Public Utilities Public Purpose Programs Fund is hereby established in the State Treasury.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
All moneys in the Public Utilities Public Purpose Programs Fund shall be allocated by the commission, upon appropriation by the Legislature, to fund the public purpose programs and
programs administered by electrical regional energy networks, consistent with Section 381.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Controller shall transfer the sum of ____ dollars ($____) on July 1 of each fiscal year, commencing with the 2026–27 fiscal year, from the Greenhouse Gas Reduction Fund, established pursuant to Section 16428.8 of the Government Code, to the Public Utilities Public Purpose Programs Fund.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In implementing this section, the commission shall consider the continuity of the public purpose programs and minimizing customer disruptions.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 379.6 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>379.6.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
It is the intent of the Legislature that the self-generation incentive program increase deployment of distributed generation and energy storage systems to facilitate the integration of those resources into the electrical grid, improve efficiency and reliability of the distribution and transmission system, and reduce emissions of greenhouse gases, peak demand, and ratepayer costs. It is the further intent of the Legislature that the commission, in future proceedings, provide for an equitable distribution of the costs and benefits of the program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For gas corporations, the commission,
in consultation with the Energy Commission, may authorize the annual collection of not more than double the amount authorized for the self-generation incentive program in the 2008 calendar year, through December 31, 2024.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For electrical corporations, the commission, in consultation with the Energy Commission, may authorize the annual allocation from the Public Utilities Public Purpose Programs Fund of not more than double the
amount authorized for the self-generation incentive program in the 2008 calendar year, through December 31, 2024.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The commission shall require the administration of the program for distributed energy resources originally established pursuant to Chapter 329 of the Statutes of 2000 until January 1, 2026.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
On January 1, 2026, the commission shall provide repayment of all unallocated funds collected pursuant to this section to reduce ratepayer costs, unless those unallocated funds originated from the Public Utilities Public Purpose Programs Fund in which case those unallocated funds shall be credited to the Public Utilities Public Purpose Programs Fund.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Eligibility for incentives under the self-generation incentive program that are funded through paragraph (2) or (3) of subdivision (a) shall be limited to distributed energy resources that the commission, in consultation with the State Air Resources Board, determines will achieve reductions in emissions of greenhouse gases pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
On or before July 1, 2015, the commission shall update the factor for avoided greenhouse gas emissions based on both the most
recent data available to the State Air Resources Board for greenhouse gas emissions from electricity sales in the self-generation incentive program administrators’ service areas and current estimates of greenhouse gas emissions over the useful life of the distributed energy resource, including consideration of the effects of the California Renewables Portfolio Standard.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The commission shall adopt requirements for energy storage systems to ensure that eligible energy storage systems reduce the emissions of greenhouse gases.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Eligibility for the funding of any combustion-operated distributed generation projects using fossil fuel is subject to all of the following conditions:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An oxides of nitrogen (NO
<html:sub>x</html:sub>
) emissions rate standard of 0.07 pounds per megawatthour and a minimum efficiency of 60 percent,
or any other NO
<html:sub>x</html:sub>
emissions rate and minimum efficiency standard adopted by the State Air Resources Board. A minimum efficiency of 60 percent shall be measured as useful energy output divided by fuel input. The efficiency determination shall be based on 100-percent load.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Combined heat and power units that meet the 60-percent efficiency standard may take a credit to meet the applicable NO
<html:sub>x</html:sub>
emissions standard of 0.07 pounds per megawatthour. Credit shall be at the rate of one megawatthour for each 3,400,000 British thermal units (Btus) of heat recovered.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The customer receiving incentives shall adequately maintain and service the combined heat and power units so that during operation the system continues to meet or exceed the efficiency and emissions standards established pursuant to paragraphs (1) and (2).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), a project that does not meet the applicable NO
<html:sub>x</html:sub>
emissions standard is eligible if it meets both of the following requirements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The project operates solely on waste gas. The commission shall require a customer that applies for an incentive pursuant to this paragraph to provide an affidavit or other form of proof that specifies that the project shall be operated solely on waste gas. Incentives awarded pursuant to this paragraph shall be subject to refund and shall be refunded by the recipient to the extent the project does not operate on waste gas. As used in this paragraph, “waste gas” means natural gas that is generated as a byproduct of petroleum production operations and is not eligible for delivery to the utility pipeline system.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The air quality management district
or air pollution control district, in issuing a permit to operate the project, determines that operation of the project will produce an onsite net air emissions benefit compared to permitted onsite emissions if the project does not operate. The commission shall require the customer to secure the permit before receiving incentives.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In determining the eligibility for the self-generation incentive program, minimum system efficiency shall be determined either by calculating electrical and process heat efficiency as set forth in Section 216.6, or by calculating overall electrical efficiency.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Eligibility for incentives under the self-generation incentive program shall be limited to distributed energy resource technologies that the commission determines meet all of the following requirements:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The distributed
energy resource technology shifts onsite energy use to off-peak time periods or reduces demand from the grid by offsetting some or all of the customer’s onsite energy load, including, but not limited to, net peak electric load.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The distributed energy resource technology is commercially available.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The distributed energy resource technology safely uses the existing transmission and distribution system.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The distributed energy resource technology improves air quality by reducing criteria air pollutants.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Recipients of the self-generation incentive program funds shall provide relevant data to the commission and the State Air Resources Board, upon request, and shall be subject to onsite inspection to verify equipment operation and performance,
including capacity, thermal output, and usage to verify criteria air pollutant and greenhouse gas emissions performance.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
In administering the self-generation incentive program, the commission shall determine a capacity factor for each distributed generation system energy resource technology in the program.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In administering the self-generation incentive program, the commission may adjust the amount of incentives and evaluate other public policy interests, including, but not limited to, ratepayers, energy efficiency, peak load reduction, load management, and environmental interests.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission shall consider the relative amount and the cost of greenhouse gas emissions reductions, peak demand reductions, system reliability benefits, and other measurable factors when allocating
program funds between eligible technologies.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The commission shall ensure that distributed generation resources are made available in the self-generation incentive program for all ratepayers.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
In administering the self-generation incentive program, the commission shall provide an additional incentive of 20 percent from existing program funds for the installation of eligible distributed generation resources manufactured in California.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
The costs of the self-generation incentive program shall not be recovered from customers participating in the California Alternate Rates for Energy (CARE) program.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
The commission shall evaluate the overall success and impact of the self-generation incentive program based on the following performance
measures:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The amount of reductions of emissions of greenhouse gases.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The amount of reductions of emissions of criteria air pollutants measured in terms of avoided emissions and reductions of criteria air pollutants represented by emissions credits secured for project approval.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The amount of energy reductions measured in energy value.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The amount of reductions of customer peak demand.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The ratio of the electricity generated by distributed energy resource generation projects receiving incentives from the self-generation incentive program to the electricity capable of being produced by those projects, commonly known as a capacity factor.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The value to the electrical transmission and distribution system measured in avoided costs of transmission and distribution upgrades and replacement.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The ability to improve onsite electricity reliability as compared to onsite electricity reliability before the self-generation incentive program technology was placed in service.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
On and after January 1, 2020, generation technologies using nonrenewable fuels shall not be eligible for incentives under the self-generation incentive program.
</html:p>
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 381 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>381.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
To ensure that the funding for the programs described in subdivision (b) and Section 382 are not commingled with other revenues, the commission shall require each electrical corporation to establish an account for moneys allocated from the Public Utilities Public Purpose Programs Fund.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commission shall allocate moneys from the Public Utilities Public Purpose Programs Fund to programs that enhance electrical system reliability and provide in-state benefits as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Energy efficiency and conservation activities.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Public interest research and development not adequately provided by competitive and regulated markets.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In-state operation and development of existing and new and emerging eligible renewable energy resources, as defined in Section 399.12.
</html:p>
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<ns0:Num>SEC. 6.</ns0:Num>
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Section 381.1 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_04CC47B9-5106-450A-BE01-07C81F391488">
<ns0:Num>381.1.</ns0:Num>
<ns0:LawSectionVersion id="id_2EDE3F6D-69C4-4896-BB47-2AED72B83891">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
No later than July 15, 2003, the commission shall establish policies and procedures by which any party, including, but not limited to, a local entity that establishes a community choice aggregation program, may apply to become administrators for cost-effective electrical efficiency and conservation programs established pursuant to Section 381 and funded by moneys allocated from the Public Utilities Public Purpose Programs Fund. In determining whether to approve an application to become administrators and subject to an aggregator’s right to elect to become an administrator pursuant to subdivision (f), the commission shall consider the value of program continuity and planning certainty and the value of allowing competitive opportunities for potentially new administrators. The commission shall weigh the benefits of the party’s proposed program to ensure that the program meets the following objectives:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Is consistent with the goals of the existing programs established pursuant to Section 381.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Advances the public interest in maximizing
cost-effective electricity savings and related benefits.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Accommodates the need for broader statewide or regional programs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
All audit and reporting requirements established by the commission pursuant to Section 381 and other statutes shall apply to the parties chosen as administrators under this section.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If a community choice aggregator is not the administrator of energy efficiency and conservation programs for which its customers are eligible, the commission shall require the administrator of cost-effective energy efficiency and conservation programs to direct a proportional share of its approved energy efficiency program activities for which the community choice aggregator’s customers are eligible, to the community choice aggregator’s territory without regard to customer class. To the extent that energy
efficiency and conservation programs are targeted to specific locations to avoid or defer transmission or distribution system upgrades, the targeted expenditures shall continue irrespective of whether the loads in those locations are served by an aggregator or by an electrical corporation. The commission shall also direct the administrator to work with the community choice aggregator, to provide advance information where appropriate about the likely impacts of energy efficiency programs and to accommodate any unique community program needs by placing more, or less, emphasis on particular approved programs to the extent that these special shifts in emphasis in no way diminish the effectiveness of broader statewide or regional programs. If the community choice aggregator proposes energy efficiency programs other than programs already approved for implementation in its territory, it shall do so under established commission policies and procedures. The commission may order an adjustment to the share of energy
efficiency program activities directed to a community choice aggregator’s territory if necessary to ensure an equitable and cost-effective allocation of energy efficiency program activities.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commission shall establish an impartial process for making the determination of whether a third party, including a community choice aggregator, may become administrators for cost-effective energy efficiency and conservation programs pursuant to subdivision (a), and shall not delegate or otherwise transfer the commission’s authority to make this determination for a community choice aggregator to an electrical corporation.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The impartial process established by the commission shall allow a registered community choice aggregator to elect to become the administrator of moneys allocated from the Public Utilities Public Purpose Programs Fund for cost-effective electrical efficiency and conservation programs.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A community choice aggregator electing to become an administrator shall submit a plan, approved by its governing board, to the commission for the administration of cost-effective energy efficiency and conservation programs for the aggregator’s electrical service customers that includes funding requirements, a program description, a cost-effectiveness analysis, and the duration of the program. The commission shall certify that the plan submitted does all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Is consistent with the goals of the programs established pursuant to this section and Section 399.4.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Advances the public interest in maximizing cost-effective electricity savings and related benefits.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Accommodates the need for broader statewide or regional programs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Includes audit and reporting requirements consistent with the audit and
reporting requirements established by the commission pursuant to this section.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Includes evaluation, measurement, and verification protocols established by the community choice aggregator.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Includes performance metrics regarding the community choice aggregator’s achievement of the objectives listed in paragraphs (1) to (5), inclusive, and in any previous plan.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
If the commission does not certify the plan for the administration of cost-effective energy efficiency and conservation programs submitted by a community choice aggregator pursuant to subdivision (f), the community choice aggregator electing to administer these programs may submit an amended plan to the commission for certification. Moneys shall not be released to a community choice aggregator unless the commission certifies the plan pursuant to subdivision (f).
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_13168971-B3BB-47B9-9C84-C243E5A87A24">
<ns0:Num>SEC. 7.</ns0:Num>
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Section 384.5 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_7E5CDE14-626B-4A3F-A105-F8C10521D13B">
<ns0:Num>384.5.</ns0:Num>
<ns0:LawSectionVersion id="id_5BE8A80C-081E-4217-BBCE-0D91412107E4">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before March 1, 2014, the commission shall order electrical corporations to submit, on or before July 1, 2015, a tariff to be used, at the discretion of local governments, to fund energy efficiency improvements in street light poles owned by the electrical corporations to ensure reduced energy consumption for local governments who are street light customers covered by these tariffs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The tariff shall be designed to allow local governments to remit the cost of the improvement through the tariff over time, resulting in reduced energy consumption, without
shifting costs to nonparticipating ratepayers. The cost of the improvement shall be identified separately rather than included within the charge for electrical service.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notwithstanding subdivision (b), the improvement performed pursuant to the tariff submitted under subdivision (a) shall be eligible for any rebate or incentives available through programs intended to increase energy efficiency that are funded by the Public Utilities Public Purpose Programs Fund.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The electrical corporation that owns the street light poles shall install or otherwise make the energy efficiency improvements
selected by the local government with an appropriately trained workforce in accordance with all applicable safety orders of the commission.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For the purposes of this section, the following terms have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Electrical corporation” means an electrical corporation, as defined in Section 218, with at least 100,000 service connections in California.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Street light pole” means a pole, arm, or fixture used primarily for street, pedestrian, or security lighting.
</html:p>
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<ns0:BillSection id="id_A077D317-4B7A-4B1F-8381-9756B763BCDD">
<ns0:Num>SEC. 8.</ns0:Num>
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Section 399.4 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_227A0BD8-2B6E-4BB7-809F-090B73ADC82E">
<ns0:Num>399.4.</ns0:Num>
<ns0:LawSectionVersion id="id_6C3B4957-E5AA-4B22-AD10-7616812D6B03">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In order to ensure that prudent investments in energy efficiency continue to be made that produce cost-effective energy savings, reduce customer demand, and contribute to the safe and reliable operation of the electrical distribution grid, it is the policy of this state and the intent of the Legislature that the commission shall supervise the administration of cost-effective energy efficiency programs authorized pursuant to its statutory authority, including Sections 381, 381.1, 381.2, 381.5, 382, 384.5, 400, 454.5, 454.55, 454.56, 589, 701.1, 749, and 769, Article 10 (commencing with Section 890) of Chapter 4, and Chapter 6 (commencing with Section 2781) of Part 2.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
As used in this section, the term “energy efficiency” includes, but
is not limited to, cost-effective activities to achieve peak load reduction that improve end-use efficiency, lower customers’ bills, and reduce system needs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If a customer or contractor is the recipient of a rebate or incentive offered by a public utility for an energy efficiency improvement or installation of energy efficient components, equipment, or appliances in a building, the public utility shall provide the rebate or incentive only if the customer or contractor certifies that the improvement or installation has complied with any applicable permitting requirements, including any applicable specifications or requirements set forth in the California Building Standards Code (Title 24 of the California Code of Regulations), and, if a contractor performed the installation or improvement, that the contractor holds the appropriate license for the work performed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In addition to the requirements of paragraph (1), if a customer or contractor is the recipient of a rebate or incentive offered by a public utility for the purchase or installation of central air conditioning or a heat pump, and their related fans, the public utility shall provide the rebate or incentive only if the customer or contractor provides proof of permit closure. The public utility is not responsible for verifying the proof of permit closure documentation provided by the customer or contractor.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This subdivision does not imply or create authority or responsibility, or expand existing authority or responsibility, of a public utility for the enforcement of the building energy and water efficiency standards adopted pursuant to subdivision (a) or (b) of Section 25402 of the Public Resources Code, or appliance efficiency standards and certification requirements adopted pursuant to subdivision (c) of Section 25402 of the
Public Resources Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This subdivision does not limit the authority of the commission to impose any additional requirements on a recipient of any rebate or incentive.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission, in evaluating energy efficiency investments under its statutory authority, shall also ensure that local and regional interests, multifamily dwellings, and energy service industry capabilities are incorporated into program portfolio design and that local governments, community-based organizations, and energy efficiency service providers are encouraged to participate in program implementation where appropriate.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commission, in a new or existing proceeding, shall review and update its policies governing energy efficiency programs to facilitate achieving the targets established pursuant to subdivision (c) of Section 25310 of the Public Resources Code. In updating its policies, the commission shall, at a minimum, do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Authorize market transformation programs with appropriate levels of funding to achieve deeper energy efficiency savings.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Authorize pay-for-performance programs that link incentives directly to measured energy savings. As part of
pay-for-performance programs authorized by the commission, customers should be reasonably compensated for developing and implementing an energy efficiency plan, with a portion of their incentive reserved pending post project measurement results.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Authorize programs to achieve deeper savings through operational, behavioral, and retrocommissioning activities.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Ensure that customers have certainty in the values and methodology used to determine energy efficiency incentives by basing the amount of any incentives provided by gas and electrical corporations on the values and methodology contained in the executed customer agreement. Incentive payments shall be based on measured results.
</html:p>
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<ns0:BillSection id="id_E0F8AB1D-A4F7-499D-8059-611AECB45654">
<ns0:Num>SEC. 9.</ns0:Num>
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Section 399.8 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_83529F6B-A6CA-48E0-A2D4-45D3303E197E">
<ns0:Num>399.8.</ns0:Num>
<ns0:LawSectionVersion id="id_D3B3D27C-3DEE-4E62-AE43-959E268D5DAD">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In order to ensure that the citizens of this state continue to receive safe, reliable, affordable, and environmentally sustainable electric service, it is the policy of this state and the intent of the Legislature that prudent investments in energy efficiency, renewable energy, and research, development, and demonstration shall continue to be made.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Moneys
allocated from the Public Utilities Public Purpose Programs Fund shall be used to fund electrical efficiency, renewable energy, and research, development, and demonstration.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Local publicly owned electric utilities shall continue to collect and administer system benefits charges pursuant to Section 385.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission and the Energy Commission shall retain and continue their oversight responsibilities as set forth in Section 381 of this code and Chapter 7.1 (commencing with Section 25620) and Chapter 8.6 (commencing with Section 25740) of Division 15 of the Public Resources Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An applicant for the Large Nonresidential Standard Performance Contract Program funded pursuant to paragraph (1) of subdivision (b) and an electrical corporation shall promptly attempt to resolve disputes that arise related to the program’s guidelines and parameters before entering into a program agreement. The applicant shall provide the electrical corporation with written notice of any dispute. Within 10 business days after receipt of the notice, the parties shall meet to resolve the dispute. If the dispute is not resolved within 10 business days after the date of the meeting, the electrical corporation shall notify the applicant of their right to file a complaint with the commission, which complaint shall describe the grounds for the complaint, injury, and relief sought. The commission shall issue its findings in response to a filed complaint within 30 business days of the date of receipt of the complaint. Before issuance of its findings, the commission shall provide a copy of the complaint to the electrical corporation, which shall provide a response to the complaint to the commission within five business days of the date of receipt. During the dispute period, the amount of estimated financial incentives shall be held in reserve until the dispute is resolved.
</html:p>
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<ns0:BillSection id="id_9A8FD8E5-1F2B-4828-9EE5-E075B2B0477C">
<ns0:Num>SEC. 10.</ns0:Num>
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Section 399.20.3 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_C5DCC19A-936F-44C4-88DB-D6839439E779">
<ns0:Num>399.20.3.</ns0:Num>
<ns0:LawSectionVersion id="id_8C981601-E7A7-4C53-A862-EA567206BD52">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Bioenergy” has the same meaning as set forth in paragraph (6) of subdivision (f) of Section 399.20.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Tier 1 high hazard zone” includes areas where wildlife and falling trees threaten electrical transmission and distribution lines, roads, and other evacuation corridors, critical community infrastructure, or other existing structures, as designated by the Department of Forestry and Fire Protection pursuant to the Proclamation of a State of Emergency on Tree Mortality declared by the Governor on October 30, 2015.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Tier 2 high hazard zone” includes watersheds
that have significant tree mortality combined with community and natural resource assets, as designated by the Department of Forestry and Fire Protection pursuant to the Proclamation of a State of Emergency on Tree Mortality declared by the Governor on October 30, 2015.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In addition to the requirements of subdivision (f) of Section 399.20, on or before July 1, 2025, electrical corporations shall collectively procure, through financial commitments of 5 to 15 years, inclusive, their proportionate share of 125 megawatts of cumulative rated generating capacity from existing bioenergy projects that commenced operations before June 1, 2013. At least 80 percent of the feedstock of an eligible facility, on an annual basis, shall be a byproduct of sustainable forestry management, which includes removal of dead and dying trees from Tier 1 and Tier 2 high hazard zones and is not that from lands that have been clear cut. At
least 60 percent of this feedstock shall be from Tier 1 and Tier 2 high hazard zones.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Paragraph (1) does not apply to a utility subject to subdivision (g) if both of the following apply:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The utility, either directly or through a joint powers authority, entered into five-year financial commitments for its proportionate share of 125 megawatts of cumulative rated generating capacity from existing bioenergy projects pursuant to this section as it was enacted by Chapter 368 of the Statutes of 2016.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The utility’s financial commitments referenced in subparagraph (A) include either: (i) a contract with a facility operator that was, on June 1, 2022, in a bankruptcy or other insolvency proceeding; or (ii) a contract for a project that does not deliver energy to the utility.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For the purpose of contracts entered into pursuant to subdivision (b), commission Resolution E-4770 (March 17, 2016), and commission Resolution E-4805 (October 13, 2016), Tier 1 and Tier 2 high hazard zone fuel or feedstock shall also include biomass fuels removed from fuel reduction operations exempt from timber harvesting plan requirements pursuant to subdivisions (a), (f), (j), and (k) of Section 4584 of the Public Resources Code, as those subdivisions read on January 1, 2024.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commission shall require an electrical corporation that has entered into a contract pursuant to subdivision (b), commission Resolution E-4770 (March 17, 2016), or commission Resolution E-4805 (October 13, 2016) to allow fuel or feedstock reporting requirements to be based on a monthly or annual basis, and a bioenergy facility providing generation pursuant to that contract shall have the right to
opt out of the mandated fuel or feedstock usage levels in any particular month upon providing written notice to the electrical corporation in the month of operation. For months in which a bioenergy facility opts out of the mandated fuel or feedstock usage levels or misses the mandated fuel or feedstock targets, that facility shall be paid the alternate price adopted by the commission in commission Resolution E-4770 for all megawatthours generated during that month. Contracts shall continue in force through the end of the contracted term without creating an event of default for missing mandated fuel or feedstock usage levels and without giving rise to a termination right in favor of the electrical corporation.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For each electrical corporation, the commission shall allocate its proportionate share of the 125 megawatts based on the ratio of the electrical corporation’s peak demand to the total statewide peak
demand.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Procurement by an electrical corporation of generation capacity pursuant to a contract under the commission’s Resolution E-4770 (March 17, 2016) that is in excess of the requirement of that electrical corporation under that resolution shall count towards meeting the electrical corporation’s proportionate share allocated pursuant to paragraph (1).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The commission may direct each electrical corporation to develop standard contract terms and conditions that reflect the operational characteristics of the bioenergy projects and to provide a streamlined contracting process or may require the electrical corporations to use the mechanism established pursuant to the commission’s Resolution E-4770 (March 17, 2016) to meet the requirements of subdivision (e). The procurement pursuant to the developed standard contract shall occur on an expedited basis due to the Proclamation
of a State of Emergency on Tree Mortality declared by the Governor on October 30, 2015.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
A local publicly owned electric utility serving more than 100,000 customers shall procure its proportionate share, based on the ratio of the utility’s peak demand to the total statewide peak demand, of 125 megawatts of cumulative rated capacity from existing bioenergy projects described in subdivision (b) subject to terms of at least five years.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The Procurement Review Group within the commission shall advise the commission on the cost of the generation procured pursuant to this section.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of this section, any incremental procurement of electricity products from bioenergy resources by a new contract or
contract extension of five years or longer in duration shall be from a resource that meets emission limits equivalent to, or more stringent than, the applicable best available retrofit control technology, as determined by the local air pollution control district or air quality management district. The determination shall be made before the start of the operating period under the new contract or contract extension.
</html:p>
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<ns0:BillSection id="id_651EC90D-3D21-4314-837F-716EA0CCDCBA">
<ns0:Num>SEC. 11.</ns0:Num>
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Section 589 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_C600C006-D246-4328-9650-03C3B080067B">
<ns0:Num>589.</ns0:Num>
<ns0:LawSectionVersion id="id_659A555F-6CFB-4B6B-8D29-A34DECE0CE00">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In an existing or new proceeding, the commission shall require electrical and gas corporations to cooperate in establishing a single internet website available to the public that provides up-to-date information, updated no less frequently than once every 30 days, regarding energy efficiency assistance programs
that are funded through the Public Utilities Public Purpose Programs Fund for purposes of electrical corporations, and that are funded through ratepayers for purposes of gas corporations, to the extent the information is available, in an aggregate format that would not provide identifying information about individual customers of the electrical and gas corporations, include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The types of energy efficiency measures installed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The ZIP Code location of each customer receiving energy efficiency assistance pursuant to this section.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The amount of funds expended at each ZIP Code location.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The expected annual energy savings and reduced energy usage expected in kilowatthours or therms.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The commission shall order the electrical and gas corporations to establish, based on data, energy efficiency assistance program reports on program totals, geographical and monthly statistics, cost distribution, and progress toward program
goals pursuant to this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The electrical and gas corporations shall make the reports available on the internet website established pursuant to subdivision (a).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission shall require the electrical and gas corporations to publish data, including the amount expended, on the energy efficiency assistance programs that are not direct retrofits, including, but not limited to, research on building and appliance standards and
marketing and outreach, on the
internet website established pursuant to subdivision (a).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commission shall take steps necessary to ensure the internet website established pursuant to subdivision (a) is available to the public on or before June 1, 2014.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The commission shall have a link to the internet website established pursuant to subdivision (a) on the commission’s
internet website and require the electrical and gas corporations to have a link to the internet website established pursuant to subdivision (a) on the appropriate page of the internet website of each electrical and gas corporation.
</html:p>
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</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_2576C6A3-8BB8-4C00-AB3A-1B937B99F45F">
<ns0:Num>SEC. 12.</ns0:Num>
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Section 718 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_9921E85C-2237-4426-AA62-CCC395F6EE02">
<ns0:Num>718.</ns0:Num>
<ns0:LawSectionVersion id="id_7C9CFFB1-E963-439B-A67A-F8111348044C">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The commission shall develop policies, rules, or regulations with a goal of reducing, by January 1, 2024, the statewide level of gas and electric service disconnections for nonpayment by residential customers, including policies, rules, or regulations specific to the four gas and electrical corporations that have the greatest number of customers. The commission shall convene stakeholders, including, but not limited to, public health officials, consumer advocates, and organizations representing low-income communities, to assist with the development of the policies, rules, or regulations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Costs of the Arrearage Management Program established pursuant to commission Decision 20-06-003 (June 11, 2020), Phase 1 Decision Adopting Rules and Policy Changes to Reduce Residential Customer Disconnections for the Larger California-Jurisdictional Energy Utilities, shall be allocated from the Public Utilities Public Purpose Programs Fund established in Section 318.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Costs of a Percentage of Income Payment Plan pilot program established pursuant to commission Decision 21-10-012 (October 7, 2021), Decision Authorizing Percentage of Income Payment Plan Pilot Programs, shall be allocated from the Public Utilities Public Purpose Programs Fund established in Section 318.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In each gas and electrical corporation general rate case, the commission shall do both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Designate the impact of any proposed increase in rates on disconnections for nonpayment as an issue in the scope of the proceeding.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Conduct an assessment of and properly identify the impact of any proposed increase in rates on disconnections for nonpayment, which shall be included in the record of the proceeding.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission shall adopt residential utility disconnections for nonpayment as a metric and incorporate the metric into each gas and electrical corporation general rate case.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_4CA5BBE1-CC8B-4ED0-B4DD-02A9DC49FDA1">
<ns0:Num>SEC. 13.</ns0:Num>
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Section 739.3 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_1D5A0404-3DC6-4CED-8CFB-8977E66AB3F2">
<ns0:Num>739.3.</ns0:Num>
<ns0:LawSectionVersion id="id_1FE89BB8-E98D-46B0-808D-E628FAF86982">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Subject to direction and supervision by the commission, each electrical corporation and gas corporation shall develop and implement a program of rate assistance to eligible food banks at a fixed percentage to be determined by the commission. The commission may adjust the fixed percentage as appropriate. The funding source for the gas rate assistance program is the surcharge on all natural gas imposed pursuant to Section 890, and the amount of that funding shall be subject to the approval of the commission. Funding for the electric rate
assistance program is through the Public Utilities Public Purpose Programs Fund.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Legislature encourages the governing board of each local publicly owned electric utility to develop and implement a program of rate assistance to eligible food banks at a fixed percentage, to be determined by the governing board, but consistent with that fixed by the commission for electrical corporations.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For purposes of this section, the following terms have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Eligible food bank” means a qualified eligible recipient agency that has executed an agreement with the State Department of Social Services in order to participate in The Emergency Food Assistance Program administered by the Food and Nutrition Service of the United States Department of Agriculture.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Eligible recipient agency” has the same meaning as defined in Section 251.3(d) of Title 7 of the Code of Federal Regulations.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Agreement” means an agreement executed in compliance with Section 251.2 of Title 7 of the Code of Federal Regulations.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_97C80439-A58B-40AD-920A-F6128A5DC922">
<ns0:Num>SEC. 14.</ns0:Num>
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Section 2788 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_A7E0E9C7-8597-4AB9-8CA5-829E1D60A2DE">
<ns0:Num>2788.</ns0:Num>
<ns0:LawSectionVersion id="id_8CF243AE-49F0-4C51-B945-37DB67ABC0CE">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The commission shall allow for purposes of setting the rates of a gas corporation participating in a home insulation assistance and financing program all expenses that the commission finds are reasonably related to the implementation and administration of the program, including commercial advertising. The commission may disapprove advertising or promotional expenses that the commission finds are not reasonably designed to promote the success of the home insulation financial assistance program.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Using moneys allocated from the Public Utilities Public Purposes Program Fund, the commission shall reimburse an electrical corporation participating in a home insulation assistance and financing program for all expenses that the commission finds are reasonably related to the implementation and administration of the program, including commercial advertising. The commission may disapprove advertising or promotional expenses that the commission finds are not reasonably designed to promote the success of the home insulation financial assistance program.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_933C24AB-0964-42BC-A985-C1B0F14AD0C3">
<ns0:Num>SEC. 15.</ns0:Num>
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Section 2851 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_AF2F0702-24E9-41DF-A65B-C4FA7DAA923D">
<ns0:Num>2851.</ns0:Num>
<ns0:LawSectionVersion id="id_6274C63E-CA98-4320-B54F-DE21A245A257">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In implementing the California Solar Initiative, the commission shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The commission shall authorize the award of monetary incentives for up to the first megawatt of alternating current generated by solar energy systems that meet the eligibility criteria established by the Energy Commission pursuant to Chapter 8.8 (commencing with Section 25780) of Division 15 of the Public Resources Code. The commission shall determine the eligibility of a solar energy system, as defined in Section 25781 of the Public Resources Code, to receive monetary incentives until the time the Energy Commission establishes eligibility criteria pursuant to Section 25782. Monetary incentives shall not be awarded for solar energy systems
that do not meet the eligibility criteria. The incentive level authorized by the commission shall decline each year following implementation of the California Solar Initiative, at a rate of no less than an average of 7 percent per year, and, except as provided in subparagraph (B), shall be zero as of December 31, 2016. The commission shall adopt and publish a schedule of declining incentive levels no less than 30 days in advance of the first decline in incentive levels. The commission may develop incentives based upon the output of electricity from the system, provided those incentives are consistent with the declining incentive levels of this paragraph and the incentives apply to only the first megawatt of electricity generated by the system.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The incentive level for the installation of a solar energy system pursuant to Section 2852 shall be zero as of December 31, 2021.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission shall adopt a performance-based incentive program so that by January 1, 2008, 100 percent of incentives for solar energy systems of 100 kilowatts or greater and at least 50 percent of incentives for solar energy systems of 30 kilowatts or greater are earned based on the actual electrical output of the solar energy systems. The commission shall encourage, and may require, performance-based incentives for solar energy systems of less than 30 kilowatts. Performance-based incentives shall decline at a rate of no less than an average of 7 percent per year. In developing the performance-based incentives, the commission may:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Apply performance-based incentives only to customer classes designated by the commission.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Design the performance-based incentives so that customers may receive a higher level of incentives than under incentives based on
installed electrical capacity.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Develop financing options that help offset the installation costs of the solar energy system, provided that this financing is ultimately repaid in full by the consumer or through the application of the performance-based rebates.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
By January 1, 2008, the commission, in consultation with the Energy Commission, shall require reasonable and cost-effective energy efficiency improvements in existing buildings as a condition of providing incentives for eligible solar energy systems, with appropriate exemptions or limitations to accommodate the limited financial resources of low-income residential housing.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding subdivision (g) of Section 2827, the commission may develop a time-variant tariff that creates the maximum incentive for ratepayers to install solar energy systems
so that the system’s peak electricity production coincides with California’s peak electricity demands and that ensures that ratepayers receive due value for their contribution to the purchase of solar energy systems and customers with solar energy systems continue to have an incentive to use electricity efficiently. In developing the time-variant tariff, the commission may exclude customers participating in the tariff from the rate cap for residential customers for existing baseline quantities or usage by those customers of up to 130 percent of existing baseline quantities, as required by Section 739.9. This paragraph does not authorize the commission to require time-variant pricing for ratepayers without a solar energy system.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a), in implementing the California Solar Initiative, the commission may authorize the award of monetary incentives for solar thermal and solar water heating devices, in a total amount up to one hundred million eight hundred thousand dollars ($100,800,000).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In implementing the California Solar Initiative, the commission shall not allocate more than fifty million dollars ($50,000,000) to research, development, and demonstration that explores solar technologies and other distributed generation technologies that employ or could employ solar
energy for generation or storage of electricity or to offset natural gas usage. Any program that allocates additional moneys to research, development, and demonstration shall be developed in collaboration with the Energy Commission to ensure there is no duplication of efforts, and adopted by the commission through a rulemaking or other appropriate public proceeding. Any grant awarded by the commission for research, development, and demonstration shall be approved by the full commission at a public meeting. This subdivision does not prohibit the commission from continuing to allocate moneys to research, development, and demonstration pursuant to the self-generation incentive program for distributed generation resources originally established pursuant to Chapter 329 of the Statutes of 2000, as modified pursuant to Section 379.6.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Legislature finds and declares that a program that provides a stable source of monetary incentives for eligible
solar energy systems will encourage private investment sufficient to make solar technologies cost effective.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The commission shall not impose any charge on the consumption of natural gas, or on natural gas ratepayers, to fund the California Solar Initiative.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding any other law, any charge imposed to fund the program adopted and implemented pursuant to this section shall be imposed upon all customers not participating in the California Alternate Rates for Energy (CARE) or family electric rate assistance (FERA) programs, including those residential customers subject to the rate limitation specified in Section 739.9 for existing baseline quantities or usage up to 130 percent of existing baseline quantities of electricity.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The costs of the program adopted and implemented pursuant to this section shall not be recovered from customers participating in the California Alternate Rates for Energy or CARE program.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Except as provided in subdivision (f), in implementing the California Solar Initiative, the commission shall ensure that the total cost over the duration of the program does not exceed three billion five hundred fifty million eight hundred thousand dollars ($3,550,800,000). Except as provided in subdivision (f), financial components of the California Solar Initiative shall consist of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Programs under the supervision of the commission
and administered by the San Diego Gas and Electric Company, Southern California Edison Company, or Pacific Gas and Electric Company. Except as provided in subdivision (f), the total cost over the duration of these programs shall not exceed two billion three hundred sixty-six million eight hundred thousand dollars ($2,366,800,000) and includes moneys in a tracking account for support of the California Solar Initiative.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Programs adopted, implemented, and financed in the amount of seven hundred eighty-four million
dollars ($784,000,000), by charges collected by local publicly owned electric utilities pursuant to Section 2854. This subdivision shall not give the commission power and jurisdiction with respect to a local publicly owned electric utility or its customers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Programs for the installation of solar energy systems on new construction (New Solar Homes Partnership Program), administered by the Energy Commission, and funded by charges in the amount of four hundred million dollars ($400,000,000), collected from customers of San Diego Gas and Electric Company, Southern California Edison Company, and Pacific Gas and Electric
Company. If the commission is notified by the Energy Commission that funding available pursuant to Section 25751 of the Public Resources Code for the New Solar Homes Partnership Program and any other funding for the purposes of this paragraph have been exhausted, the commission may require an electrical corporation to continue administration of the program pursuant to the guidelines established for the program by the Energy Commission, until the funding limit authorized by this paragraph has been reached. The commission may determine whether a third party, including the Energy Commission, should administer the utility’s continuation of the New Solar Homes Partnership Program. The commission, in consultation with the Energy Commission, shall supervise the administration of the continuation of the New Solar Homes Partnership Program by an electrical corporation or third-party administrator. After the exhaustion of funds, the Energy Commission shall notify the Joint Legislative Budget Committee 30 days before the continuation of the program. This subparagraph shall become inoperative on June 1, 2018.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the commission requires a continuation of the program pursuant to subparagraph (A), any funding made available pursuant to the continuation of the program shall be encumbered through the issuance of rebate reservations by no later than June 1, 2018, and disbursed by no later than December 31, 2021.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The changes made to this subdivision by Chapter 39 of the Statutes of 2012 do not authorize the levy of a charge or any increase in the amount collected pursuant to any existing charge, nor do the
changes add to, or detract from, the commission’s existing authority to levy or increase charges.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Upon the expenditure or reservation in any electrical corporation’s service territory of the amount specified in paragraph (1) of subdivision (e) for low-income residential housing programs pursuant to subdivision (c) of Section 2852, the commission shall authorize the continued collection of the charge for the purposes of Section 2852. The commission shall ensure that the total amount collected pursuant to this subdivision does not exceed one hundred eight million dollars ($108,000,000). Upon approval by the commission, an electrical corporation may use amounts collected pursuant to subdivision (e) for purposes of funding the general market portion of the California Solar Initiative, that remain unspent and unencumbered after December 31, 2016, to reduce the electrical corporation’s portion of the total amount collected pursuant to this
subdivision.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_9830B37C-F7BB-4ACC-9A07-8E47A6A6CC69">
<ns0:Num>SEC. 16.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B 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 XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
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</ns0:Bill>
</ns0:MeasureDoc>