Summary of Energy-Related Legislation
2002 Legislative Session

The following is a list of all energy-related bills in the 2001-2002 Legislative Session and final actions by the Governor.

See Assembly Measures
See Senate Measures

ASSEMBLY BILLS

AB 57 (Wright), Chapter 835
Summary:
This bill, among its provisions, encourages the State's investor-owned utilities (IOUs) to enter into long-term contracts for electricity by establishing a process for the Public Utilities Commission (PUC) to grant such contracts "per se" reasonableness. In addition, the bill requires IOUs, in order to fulfill their unmet resource needs, to procure at least an additional one percent of their sales from renewable resources.

AB 58 (Keeley), Chapter 836
Summary:
This bill makes changes to the current net metering law to facilitate the timely and uniform practice of net metering, limit aggregate net metering to _ percent, introduce a "co-metering" option, and makes Department of Water Resources (DWR) cost recovery and the public goods charge nonbypassable. This bill also requires the Energy Commission to increase the rebate amount for eligible emerging distributed technologies up to 75 percent for affordable housing projects.

AB 80 (Havice), Chapter 837 (Signed with Governor's Message)
Summary:
This bill allows any city with rights and obligations to the Magnolia Power Project to serve as a power aggregator on behalf of all retail end-use customers within its jurisdiction. This bill also establishes a mechanism to ensure that any costs of the Department of Water Resources (DWR) or an affected investor-owned utility (IOU) associated with such aggregation would be recoverable.

AB 81 (Migden), Chapter 57
Summary:
This bill transfers assessment responsibility for property tax purposes from local county assessors to the Board of Equalization (BOE), and preserves the allocation of powerplant (50 megawatts or more) property tax revenues to only those local agencies in whose jurisdiction the powerplant is located. This measure will commence with the property tax lien date for the 2003-04 fiscal year and each fiscal year thereafter.

AB 117 (Migden), Chapter 838 (Signed with Governor's Message)
Summary:
This bill facilitates the ability of communities to procure electricity directly from electricity suppliers.

AB 1031 (Canciamilla), Chapter 337
Summary:
This bill amends the Warren-Alquist Act by 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.

AB 1207 (Longville), Chapter 562
Summary:
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.

AB 1234 (Pescetti), Chapter 839
Summary:
This bill extends to a private natural gas producer, the ability to acquire an easement from a public utility, if the California Public Utility Commission (CPUC) deems the intended use of the easement to be in the public interest. The bill also provides for the notification to the owners of the real property affected by the easement within 10 days of an application to the CPUC.

AB 1235 (Leslie), Chapter 840
Summary:
Pursuant to AB 6X (Dutra), Chapter 2, Statutes of 2001, the sale of any investor owned utility (IOU) generation is prohibited until January 1, 2006. This bill exempts four Sierra Pacific Power Company run-of-river hydroelectric projects located on the Truckee River and two run-of-river hydroelectric projects located in the State of Washington from the provisions of AB 6X.

AB 1314 (Havice), Chapter 640
Summary:
This bill provides local agencies with the authority to enact an ordinance or resolution regulating the parking spaces intended for recharging electric vehicles. The bill also enacts uniform penalty provisions to enforce the bill's provisions.

AB 1493 (Pavley), Chapter 200
Summary:
This bill requires the California Air Resources Board (CARB) to adopt regulations, no later than January 1, 2005, to reduce greenhouse gases (GHGs) from noncommercial passenger motor vehicles and light-duty trucks manufactured no earlier than 2009. Further, it places additional duties on the California Climate Action Registry (the Registry) related to emissions reductions.

AB 1561 (Kelley), Chapter 421
Summary:
This bill requires the Energy Commission to adopt a water factor (WF) standard for residential clothes washers by January 1, 2004, that would be at least as efficient as the standard for commercial washing machines (which is currently 9.5), and to petition the U.S. Department of Energy (DOE) for a waiver from preemption of the federal standard. Further, the Energy Commission is required to report, no later than January 1, 2005, to the Legislature and the Governor on the progress of implementing the requirements prescribed under this measure.

AB 1881 (Pescetti), Chapter 561
Summary:
Expands the definition of solar equipment to assure the inclusion of solar water heaters where solar energy equipment is required to be installed on all state buildings and all state parking facilities, where feasible, by January 1, 2007.

AB 1968 (Nation), Chapter 843
Summary:
This bill excludes solar, wind, and fuel cell rebates paid by the Energy Commission or the Public Utilities Commission from being considered as part of a taxpayer's gross income for the purposes of State Income Tax.

AB 2228 (Negrete McLeod), Chapter 845
Summary:
This bill provides that biogas electrical customer-generator facilities up to 1 megaWatt (MW) are eligible for net energy metering until January 1, 2006, under a pilot program. Current law limits participation in net metering to solar and wind electric generating facilities. This bill limits biogas digester generation load to 5 MW per energy service provider service territory and also provide for retail cost recovery.

AB 2461 (Keeley), Chapter 566
Summary:
Extends the sunset date for the vehicle license fee exemption for the incremental cost of alternative fuel vehicles that meets or exceeds Ultra Low Emission Vehicle standards from January 1, 2003, to January 1, 2009.

AB 2706 (Cardoza), Chapter 846
Summary:
This bill authorizes an irrigation district to enter into any forward contract, or futures contract, or put, call, or swap agreement, or similar procurement method for electricity, natural gas, or coal, or any weather, fuel, or energy risk management contract determined to be in the best interests of the district by the board of directors of the district for any uses or purposes of the district.

AB 3000 (Budget Committee), Chapter 1124
Summary:
The bill, among its provisions, increases the state energy surcharge on electricity consumption from two tenths of a mill ($0.0002) to three tenths of a mill ($0.0003) per kilowatt-hour (kWh). This surcharge supports the Energy Resources Program Account (ERPA) that serves as the core funding for the Energy Commission.

AB 3009 (Budget Committee), Chapter 1033
Summary:
The bill, among its provisions, will increase the state energy surcharge on electricity consumption from $0.0002 to $0.0003 per kiloWatt hour (kWh). It also provides that the Energy Commission must fix the surcharge rate at a public meeting each November, not to exceed $0.0003 per kilowatt-hour. This surcharge supports the Energy Resources Program Account (ERPA) that serves as the core funding for the Energy Commission. In addition, this bill suspends for two years the natural heritage preservation tax audit.


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SENATE BILLS

SB 284 (Polanco), Chapter 498
Summary:
This bill requires the Energy Commission, in consultation with the Department of Education, the Division of the State Architect and the Office of Public School Construction, to recommend best design practices that include energy efficiency measures for new public schools. The recommendations are required to be reported to the Governor and Legislature by October 1, 2003.

SB 812 (Sher), Chapter 423
Summary:
This bill requires the California Climate Action Registry (the Registry), in cooperation with the Resources Agency, to adopt procedures and protocols for the reporting and certification of greenhouse gas (GHG) emission reductions resulting from a project or an action of a participant. These actions include management activities on certain forested lands within its scope.

SB 1038 (Sher), Chapter 515
Summary:
This bill authorizes the Energy Commission to continue to administer the Public Interest Energy Research Program (PIER) and the Renewable Energy Program for five additional years, and make conforming changes in those programs that correspond to the Commission's recently adopted investment plans. This bill also allows net metering for the Dinuba and PVUSA facilities under specified conditions. This bill is double joined to SB 1078, the renewable portfolio standard.

SB 1078 (Sher), Chapter 516
Summary:
This bill requires retail sellers of electricity to increase procurement of electricity from renewable energy sources by at least 1 percent of retail sales per year until their portfolio of renewable energy increases to 20 percent. The deadline for reaching the threshold is 2017. Municipal utilities are required to implement and enforce their own such program.

SB 1269 (Peace), Chapter 567
Summary:
This bill, among other things, requires merchant powerplant developers of projects whose applications are deemed complete after January 1, 2003, to begin construction of their projects within one year of receiving their certification to construct and operate a powerplant from the Energy Commission. In addition, it authorizes the Energy Commission to transfer a certification to the California Power Authority (CPA), if a developer fails to meet construction deadlines or milestones and the CPA elects to pursue the project. The measure exempts certain types of projects, including repowers, modernizations, replacements, self-generators, qualifying facilities, and municipal utility projects.

SB 1389 (Bowen), Chapter 568
Summary:
Enacts statutory changes to align the Energy Commission's policy reporting, forecasting, and data collection responsibilities with restructured energy markets. These changes eliminate obsolete requirements and replaces them with relevant, timely, and efficient requirements to meet the policy development needs of the Governor and the Legislature and the information needs of the public in today's energy market.

SB 1534 (Bowen), Chapter 570
Summary:
Requires that solar energy systems for sale in California be certified by the Solar Rating Certification Corporation. This bill also mandates that the systems meet all of the applicable safety and performance standards established by the National Electrical Code and the Institute of Electrical and Electronics Engineers.

SB 1755 (Soto), Chapter 848
Summary:
This bill adds Section 31149.7 and 71663.5 to the Water Code, relating to electric power by special water districts and authorizes municipal and county water districts to build, own and operate electric power plants of any kind to provide, generate and deliver electric power for their own purposes and sell the excess in the wholesale market. The bill prohibits those districts from acquiring property employed in the generation or delivery of electric power, except by mutual agreement between the district and the property owner and makes provisions for the districts to pay their fair share for any departing electric load.

SB 1790 (Bowen), Chapter 601
Summary:
This bill enacts technical cleanup language to the Energy Conservation Assistance Account (ECAA) and the Local Jurisdiction Energy Assistance Account (LJEAA). In addition, the bill requires the Public Utilities Commission (PUC), in consultation with the Energy Commission, to develop a program for residential and commercial customer air conditioning load control under certain conditions.

SB 1976 (Torlakson), Chapter 850
Summary:
This bill requires the Energy Commission, in consultation with the Public Utilities Commission (PUC), to report to the Legislature and Governor by March 31, 2003, on the feasibility of implementing real-time pricing (RTP), critical peak pricing, and other dynamic pricing tariffs for electricity in California. In addition, the measure allows the State's investor-owned utilities (IOUs) to resume purchasing electricity by establishing a procurement process for the PUC, which among other things, grants such contracts "per se" reasonableness. Further, the bill requires IOUs, in order to fulfill their unmet resource needs, to procure at least an additional one percent of their sales from renewable resources.

SB 1989 (Knight), Chapter 328
Summary:
This bill requires a local agency receiving an application to permit a small wind energy system on a site that is within the restricted military airspace known as "R-2515" (Edwards Air Force Base), to forward a copy of that application to the governing authority of the restricted military airspace. If the governing authority of the restricted military airspace provides written comments regarding the application, the local agency will consider those comments before acting on the application.


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