Summary of Energy-Related Legislation
2001 Legislative Session
The following is a list of all energy-related bills in the 2000-2001 Legislative Session and final actions by the Governor.
AB 1 (Aanestad) California Public Utilities Commission: Dispute Resolution
This bill establishes a dispute resolution process at the California Public Utilities Commission (PUC) for the Large Nonresidential Standard Performance Contract Program. This energy efficiency program, which provides incentives for the installation of high-efficiency equipment for commercial and industrial users, is funded by the public goods surcharge on electric bills. The bill provides energy efficiency contractors with a venue to dispute the amount of money utilities pay them for upgrades or improvements made under the PUC's energy efficiency program, specifically the Large Nonresidential Standard Performance Contract Program.
Action: Signed with Message; Chapter 770, Statutes of 2001.
The Governor stated that he is directing the PUC to implement the provisions of the bill within existing resources.
AB 69 (Wright) Los Angeles Governmental Entities: Direct Access - Urgency
This bill would have allowed specific governmental entities in Los Angeles County, which are currently Southern California Edison customers, to enter into direct-access electricity contracts with LADWP.
AB 549 (Longville) Building Energy Efficiency Standards
This bill requires the Energy Commission to conduct a study and make recommendations to save energy and to reduce peak load demand in existing residential and nonresidential buildings and submit it to the Legislature. The report is due by January 1, 2004. The bill also requires utilities to provide assistance to the Energy Commission when the Commission is developing energy efficiency building standards.
Action: Signed with Message; Chapter 905, Statutes of 2001.
The Governor stated that because of current budget constraints, he is encouraging the Energy Commission to seek matching funds for the bill through a public/private partnership. If such funding is made available, he will redirect existing state funds within the Energy Commission for carrying out the bill's requirements.
AB 1031 (Canciamilla) Natural Gas Supplies: Biennial Report
This bill amends the Warren-Alquist Actby requiring that the Energy Commission's comprehensive biennial report related to "emerging trends" on natural gas and other petroleum products, also include an evaluation of average conditions, best -and worst-case scenarios, and an evaluation of the impact of increasing renewable resources on natural gas demand.
Action: Signed with Message; Chapter 337, Statutes of 2001.
The Governor stated that he signed the bill because of the critical need for complete and accurate information about the state's energy needs. However, the Governor is directing the Energy Commission to conduct the required evaluations using existing resources.
AB 1207 (Longville) Wind Turbine Energy Systems: Local Ordinances
This bill declares that it is the State's policy to promote and encourage small wind energy systems and to remove obstacles to their use. The bill encourages local governments to either adopt an ordinance that would permit small wind energy systems or to approve wind system permit applications that meet certain minimum criteria until July 1, 2005.
Action: Signed; Chapter 562, Statutes of 2001.
AB 1233 (Pescetti) Public Utilities: In-State Production: Tariffs
This bill requires the California Public Utilities Commission (PUC) to investigate impediments to the in-state production and storage of natural gas as part of a gas utility's rate proceeding. Further, the bill discourages the PUC from adopting tariffs that discourage in-state production or storage of natural gas. In addition, it authorizes the PUC to adopt tariffs to encourage in-state production or storage of natural gas, including, but not limited to, reducing local transmission rates applicable to in-state gas blends under certain conditions.
Action: Signed; Chapter 771 , Statutes of 2001.
AB 1574 (Lowenthal) Building Standards: Home Inspections
This bill authorizes the Energy Commission to develop and disseminate information measures to enhance energy efficiency for single-family homes that were built prior to the establishment of current energy efficiency standards. Further, the bill provides that a home inspection may include an energy efficiency component if requested by the buyer or seller at the point of sale.
Action: Signed; Chapter 773, Statutes of 2001.
AB 1724 (Pavley) Public Utilities: Reliable Electric Service Investments Act
This bill deletes an existing provision of law that declares public entities ineligible to receive customer credits for the purchase of renewable energy as of January 1, 2002. It allows public entities to continue to receive credits after January 1, 2002, but requires the Energy Commission to establish a cap on the amount of funds that they may receive. The intent of the cap is to assure adequate credit funding for residential and small commercial customers.
Action: Signed; Chapter 774, Statutes of 2001.
ASSEMBLY FIRST EXTRAORDINARY SESSION
AB 1x (Keeley and Migden) DWR: Power Exchanges - Urgency
This bill authorizes the Department of Water Resources (DWR), on behalf of the State, to enter into long-term contracts to buy electricity for resale to retail end use customers, and with exceptions, to municipal utilities. In addition, it prohibits DWR from buying electricity after January 2, 2003. Further, the measure appropriated $500 million from the General Fund to implement its provisions. Finally, among other things, the bill authorized DWR to sell revenue bonds to finance the power purchases.
Action: Signed; Chapter 4, 1st Extraordinary Session, Statutes of 2001
AB 5x (Keeley) Electrical Restructuring: Cal-ISO - Urgency
This bill revises the governing structure of the California Independent System Operator (Cal-ISO) Board by replacing current stakeholder members with a more independent panel appointed by the Governor.
Action: Signed; Chapter 1, 1st Extraordinary Session, Statutes of 2001
AB 6x (Dutra and Pescetti) Electrical Restructuring: California Public Utilities Commission - Urgency
This bill clarifies that investor owned utility (IOU) generation assets remain regulated by the Public Utilities Commission (CPUC), until the PUC authorizes their disposal. In addition, the bill explicitly forbids the sale of any IOU-owned power plants until January 1, 2006.
Action: Signed; Chapter 2, 1st Extraordinary Session, Statutes of 2001
AB 9x (Richman) Energy Resources - Urgency
This bill would have authorized customers to aggregate their electric loads as individual customers with private aggregators or as members of their local community with community choice aggregators.
AB 29x (Kehoe) Energy Conservation: Renewable Programs - Urgency
This bill appropriates approximately $205 million for various energy conservation and renewable generation programs. In addition, the bill expanded the current net-metering law for solar electricity systems to apply to systems up to 1.0 megawatt in size.
Action: Signed with Message; Chapter 8, 1st Extraordinary Session
The Governor stated that he signed AB 29X with line item vetoes and reductions to more closely align the bill with his expenditure plan and to prioritize conservation measures for this summer.
AB 43x (Correa) Electric Power: SDG&E Company
This bill makes clarifying changes to provisions that set a ceiling on the energy component of electric bills for San Diego Gas & Electric customers. In addition, it makes a technical correction to ensure that the Department of Water Resources (DWR) receives the proper financing to purchase electricity on behalf of the State.
Action: Signed; Chapter 6, 1st Extraordinary Session
ASSEMBLY SECOND EXTRAORDINARY SESSION
AB 9xx (Migden) Electrical Restructuring: Aggregation: Direct Access
This bill would have authorized customers to aggregate their electric loads as individual consumers (direct access) with private aggregators or community choice aggregator. Further, it would have contained provisions to protect DWR and utilities from accuring stranded costs as a result of the establishment of community aggregators. The bill would have forbidden the establishment of community choice aggregators in municipal utility districts. Finally, the bill would have required that community choice aggregators receive a proportional benefit from the public goods charge energy efficiency programs.
AB 21xx (Canciamilla) California Public Utilities Commission: Natural Gas: Eminent Domain
This bill is part of a package sponsored by the Assembly Subcommittee on Natural Gas Cost and Availability aimed at stabilizing the price of natural gas. It streamlines the eminent domain process initiated by a public utility gas corporation by allowing the California Public Utilities Commission to consolidate the public hearing process for a Certificate of Public Convenience. The bill also extends by 45 days the time the PUC has to complete its review of eminent domain petitions.
Action: Signed; Chapter 14, 2nd Extraordinary Session, Statutes of 2001.
AB 26xx (Calderon) Loan Programs: Distributed Generation Tariffs
This bill requires the California Public Utilities Commission, when establishing tariffs for distribution generation systems, to provide lower rates for those customers with more reliable systems. The bill also extends the sunset on the State Assistance Fund for Energy, California Business and Industrial Development Corporation (SAFE-BIDCO), a non-profit statutorily created entity that provides energy efficiency loans to small businesses, from July 1, 2001 to July 1, 2011. Finally, the bill provides that the interest rates for the Energy Commission's energy conservation loan programs have interest rates of not less than 3% per annum.
Action: Signed; Chapter 15, 2nd Extraordinary Session, Statutes of 2001.
AB 28xx (Migden) Electrical Restructuring: EOB: CAISO
This bill codifies the Governor's Executive Order (D-23-1) that directed the Electricity Oversight Board (EOB) to develop and implement outage protocols for transmission and generation facilities located in the state. In addition, it authorizes the EOB to investigate wholesale electricity matters to protect California consumers' interests. The bill would also require the California Independent System Operator (CAISO) to propose operation, maintenance, and availability standards for generators. The bill would sunset no later than January 1, 2003, and would become operative only upon the enactment of SB 39XX (Speier).
Action: Signed; Chapter 16, 2nd Extraordinary Session, Statutes of 2001.
AB 48xx (Wright) Solar Energy Training Program and System Certification
This bill creates a statewide solar training program and the "Sunny Homes Seal" for solar energy systems in new homes. The bill also modifies an Energy Commission solar program to allow for the development of specifications for components of solar energy generation systems to allow for the eligibility of battery back-up systems.
Action: Signed with Message; Chapter 17, 2nd Extraordinary Session, Statutes of 2001.
The Governor stated that he is directing the Employment Development Department to implement the training provisions of the bill within existing resources.
AB 61xx (Kehoe) Technical Cleanup: Energy Efficiency and Renewable Energy Programs
This bill corrects several erroneous cross-references contained in AB 29x (Kehoe), Chapter 8, Statutes of 2001, related to energy efficiency and renewable energy programs.
Action: Signed; Chapter 9, 2nd Extraordinary Session, Statutes of 2001.
AB 86xx (Florez) Diesel Water Fuel Emulsion: Excise Tax - (Urgency)
This bill exempts the water portion of a diesel fuel/water emulsion from the excise tax on diesel fuel. The bill sunsets on January 1, 2007.
Action: Signed; Chapter 8, 2nd Extraordinary Session, Statutes of 2001.
SB 47 (Bowen) Electrical Restructuring: EOB: CAISO: Member's Terms
This bill authorizes the Elecetricity Oversight Board to investigate any matter related to the wholesale market for electricity. The bill also requires members of the Independent System Operator governing board, appointed by the Governor, to be confirmed by the Senate and extends those members' terms from one year to three years and provides for staggered terms.
Action: Signed; Chapter 766, Statutes of 2001.
SB 527 (Sher) California Climate Action Registry
This bill further defines the parameters within which the California Climate Action Registry, established by SB 1771 (Sher), Chapter 1018, Statutes of 2000, would operate and how the Resources Agency, the Energy Commission and the Air Resources Board, among others, will work together to provide technical support for the registry. In addition, the amendments look at which greenhouse gas emissions will be measured and when. Unrelated to the Registry, the bill also authorizes the Air Resources Board (ARB), in hearings conducted by an administrative law judge, to impose administrative civil penalties, as an alternative to seeking judicially imposed civil penalties, in an amount equal to or less than that which may be imposed as civil penalties up to $10,000.
Action: Signed with Message; Chapter 769, Statutes of 2001.
The Governor stated that he is directing the Energy Commission to recover administrative costs associated with the Climate Action Registry through revenues received as part of that voluntary program.
SB 1170 (Sher) State Vehicle Fleet Efficiency:Tire Efficiency Study
This bill makes it the policy of the California to minimize the use of petroleum fuels by state agencies. The bill requires the Energy Commission, the Department of General Services (DGS), and the Air Resources Board (ARB) to adopt fuel-efficiency and air pollution emissions standards governing the purchase of motor vehicles and replacement tires for the state. The Energy Commission and DGS will jointly conduct a study to analyze the costs and benefits of reducing the energy consumption of the state fleet. In addition, the Energy Commission will recommend a California State Fuel-Efficient Tire Program to the Governor and the Legislature.
Action: Sign with Message; Chapter 912, Statutes of 2001.
The Governor stated that because of current budget constraints, he is encouraging the Energy Commission to seek matching funds for the bill through a public/private partnership. If such funding is made available, he will redirect existing State funds within the Energy Commission to carry out the bill's requirements.
SB 1172 (Kuehl) Municipally Owned Electric Utilities: Direct Access
This bill would have permitted retail customers or local agencies, whose property straddles the Los Angeles Dept. of Water and Power service area, to enter into a direct transaction contract for the entire property from a single electric service provider (up to a limitation of 50 Mws) through July 1, 2002.
SENATE FIRST EXTRAORDINARY SESSION
SB 5x (Sher) Efficiency Programs: Peak Demand Consumption - Urgency
This bill appropriates approximately $655 million from the General Fund to implement energy efficiency programs and supplement existing energy efficiency programs to reduce peak demand consumption. Approximately $243 million has been allocated to the Energy Commission.
Action: Signed with Message; Chapter 7, 1st Extraordinary Session, Statutes of 2001.
The Governor stated that he signed SB 5X with line item vetoes and reductions to more closely align the bill with his expenditure plan and to prioritize conservation measures for this summer.
SB 6x (Burton) California Consumer Power and Conservation Financing Authority.
This bill establishes the California Consumer Power and Conservation Financing Authority (CPCFA). The CPCFA is authorized to establish, finance, purchase, lease, own, operate, and acquire generating facilities and other energy projects to ensure that California has a sufficient and reliable supply of electricity at just and reasonable rates. The CPCFA also finances incentives for consumers and businesses to invest in energy-efficient appliances, participate in renewable energy projects, and otherwise reduce energy demand. In addition, the CPCFA is authorized to finance efficiency and environmental performance upgrades at existing powerplants. The CPCFA will be tasked with achieving an adequate energy reserve capacity in California by 2006. In addition, the bill requires the Public Utilities Commission (PUC) to prepare and submit, in consultation with the Energy Commission, a natural gas report to the CPCFA and the Legislature within 90 days of enactment. The CPCFA is required to adopt, in consultation with the Energy Commission and the California Independent System Operator (CAISO), an Energy Resource Investment Plan within 180 days of enactment, which will serve as the guide for investments made by the CPCFA. The CPCFA is authorized to issue revenue bonds in an amount not to exceed $5 billion for purposes of financing projects under this bill. The CPCFA's ability to finance projects will sunset on January 1, 2007.
Action: Signed with Message; Chapter 10, 1st Extraordinary Session, Statutes of 2001
The Governor stated that he is calling for a number of revisions to be included in clean-up legislation to ensure the Authority operates in the most efficient and effective manner. After the Authority is established, an assessment will need to be made of how to reorganize the roles and functions of energy-related agencies to complement the newly created Authority. The Governor noted that he will be working with the Legislature to make any needed changes. Additionally, modifications are necessary to improve the structure of the Authority governing board, provide technical clarifications, and ensure that the Authority appropriately considers the Energy Commission's electricity and natural gas analyses when developing the Energy Resources Investment Plan.
SB 28x (Sher) Powerplant Siting - Urgency
This bill sets a December 31, 2004 deadline for the retrofit of powerplants with air pollution control technologies, unless such a deadline would jeopardize system reliability. The bill additionally authorizes the Air Resources Board to establish an emission offset bank and establishes a mechanism for air districts to obtain and make available emission credits for powerplants. The bill makes several changes to accelerate the Energy Commission's 12-month siting process. The bill re-establishes the 4-month siting process for peaking powerplants and establishes an expedited 6-month siting process for the repowering of existing powerplants. Finally, the bill grants relief from standby charges for non-diesel distributed generation and subject them to real-time rates.
Action: Signed; Chapter 12, 1st First Extraordinary Session, Statutes of 2001
SENATE SECOND EXTRAORDINARY SESSION
SB 2xx (Alarcon) Low-income Oversight Board
This bill establishes the Low-Income Oversight Board. The Board will advise the California Public Utilities Commission (PUC) on implementation of programs to reduce electricity rates and provide weatherization services for low-income electricity and gas customers. In addition, the bill requires municipal utilities to ensure that their low-income assistance programs meet the level of need.
Action: Signed with Message; Chapter 11, 2nd Extraordinary Session, Statutes of 2001.
The Governor stated that he is directing the PUC to implement the provisions of the bill within existing resources.
SB 17xx (Brulte) Solar and Wind Tax Credit
This bill creates a tax credit, for tax years 2001-2003, equal to the lesser of 15 percent of the purchase cost or $4.50 per rated watt of a photovoltaic or wind-driven system with a generating capacity of not more than 200 kilowatts. The credit is reduced to half that amount for tax years 2004-2005, and sunsets on January 1, 2006. Qualifying systems would need to be certified by the Energy Commission, installed with a five-year warranty, and would be required to be in service in California for at least one year.
Action: Signed, Chapter 12, 2nd Extraordinary Session, Statutes of 2001.
SB 64xx (Costa) Agricultural Biomass: Incentive Grants - Urgency
This bill revises the Governor's Central Valley Agriculture Biomass-to-Energy Incentive Grant Program by expanding the program's eligibility to include facilities that operated prior to July 1, 2000. In addition, the bill requires the Energy Commission to allocate $3.5 million from agricultural energy efficiency funds originally appropriated by SB 5x (Sher), Chapter 7, Statutes of 2001, to the Technology, Trade, and Commerce Agency (TTCA) in order supplement the biomass grant program.
Action: Signed; Chapter 4, 2nd Extraordinary Session, Statutes of 2001.
SB 75xx (Ortiz) Income taxes deduction: interest
This bill allows a tax deduction for interest paid on a loan financed through a public utility company to purchase energy efficient equipment and products for California residences.
Action: Signed; Chapter 5, 2nd Extraordinary Session, Statutes of 2001.
SB 82xx (Murray) Solar Energy Equipment for State Buildings
This bill requires the Department of General Services (DGS), in cooperation with the Energy Commission, to ensure that, where feasible and cost-effective, solar energy equipment is installed on all state buildings and parking facilities by January 1, 2007. In addition, the bill requires DGS to adopt emergency regulations that would require that cost-effective solar energy equipment is installed as part of the construction of new state buildings and parking facilities after December 31, 2002.
Action: Signed with Message; Chapter 10, 2nd Extraordinary Session, Statutes of 2001.
The Governor stated that he is directing the Department of General Services to obtain concurrent approval from the Department of Finance on projects it has determined to be cost effective, prior to proceeding with the installation of any solar energy equipment.
SB 84xx (Burton) Battery Backup Systems: Traffic Signals Urgency
This bill authorizes the Energy Commission, in consultation with local governments, to develop and implement a matching grant program to provide battery backup systems for traffic control signals retrofitted with light-emitting diodes (LEDs). Further, the measure reallocates up to $10 million from existing state funds (pursuant to AB 29x, (Kehoe), Chapter 8, Statutes of 2001) to the Energy Commission for the purpose of providing matching grants.
Action: Signed; Chapter 6, 2nd Extraordinary Session, Statutes of 2001.
SB 85xx (Burton) Electrical Restructuring: Rates
This bill prohibits the California Public Utilities Commission from raising electrical rates back to the pre-10 percent rate reduction levels solely because the mandatory rate period has expired.
Action: Signed; Chapter 7, 2nd Extraordinary Session, Statutes of 2001.