Amended IN Senate April 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1020Introduced by Senator Senators Laird, Caballero, Durazo, and AtkinsFebruary 14, 2022An act to amend Section 38561 of the Health and Safety Code, relating to greenhouse gases. to amend Section 454.53 of, to add Sections 352.8 and 454.59 to, and to add Division 8 (commencing with Section 19000) to, the Public Utilities Code, and to add Division 27.5 (commencing with Section 80400) to the Water Code, relating to climate change, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 1020, as amended, Laird. California Global Warming Solutions Act of 2006: scoping plan. Clean Energy, Jobs, and Affordability Act of 2022.The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years. The act requires the state board to conduct a series of public workshops to give interested parties an opportunity to comment on the plan and requires a portion of those workshops to be conducted in regions of the state that have the most significant exposure to air pollutants, including communities with minority populations, communities with low-income populations, or both.This bill instead would modify, with respect to the provision that a portion of the workshops be conducted in regions of the state that have the most significant exposure to air pollutants, the above-described included communities as additionally being areas designated as federal extreme nonattainment.Under existing law, it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045.This bill would revise that state policy to instead provide that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2030, as specified.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the PUC to ensure that facilities needed to maintain the reliability of the electrical supply remain available and operational.Existing law establishes an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the PUC, ISO, transmission owners, users, and consumers, to adopt a strategic plan for the states electrical transmission grid using existing resources in order to identify and recommend actions required to implement investments needed to ensure reliability, relieve congestion, and meet future growth in load and generation. This bill would authorize the PUC and Energy Commission, upon request of the ISO, to disclose to the ISO confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning.This bill would require the PUC and Energy Commission to jointly authorize the establishment of the California Affordable Decarbonization Authority as a nonprofit public benefit corporation and to take all necessary measures to create the authority. The bill would require the authority to be governed by an independent board of directors appointed by the Governor, Speaker of the Assembly, and Senate Committee on Rules, as specified. The bill would require the authority to maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act and the California Public Records Act. The bill would establish the Climate and Equity Trust Fund as a trust fund, separate and apart from all public moneys or funds of the state, and would continuously appropriate the moneys in the trust fund to the authority for the benefit of electricity customers and to promote affordable electricity rates, as specified, thereby making an appropriation. The bill would authorize disbursements from the trust fund to be made through direct credits on ratepayer bills, direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers, and reimbursement of eligible costs incurred by an electrical corporation, electric service provider, community choice aggregator, or local publicly owned electric utility in the form of matching funds. The bill would require the authority to submit annual and multiyear spending plans for review and approval to the PUC and the Energy Commission before disbursing trust fund moneys.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because certain of the above provisions would be part of the act and a violation of a PUC action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would provide that it is the intent of the Legislature to later appropriate $5,000,000 in the annual Budget Act to serve as startup funds in the trust fund for the authority and for the authority to repay those startup funds.Digest Key Vote: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: YES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Clean Energy, Jobs, and Affordability Act of 2022.SECTION 1.SEC. 2. Section 38561 of the Health and Safety Code is amended to read:38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.SEC. 3. Section 352.8 is added to the Public Utilities Code, to read:352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.SEC. 4. Section 454.53 of the Public Utilities Code is amended to read:454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.SEC. 5. Section 454.59 is added to the Public Utilities Code, to read:454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.SEC. 6. Division 8 (commencing with Section 19000) is added to the Public Utilities Code, to read:DIVISION 8. Climate and Equity Trust FundPART 1. General Provisions19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.PART 2. The California Affordable Decarbonization Authority19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.PART 3. The Climate and Equity Trust Fund19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.PART 4. Responsibilities of the Authority19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.PART 5. Responsibilities of the Public Utilities Commission and Energy Commission19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.SEC. 7. Division 27.5 (commencing with Section 80400) is added to the Water Code, to read:DIVISION 27.5. State Water Project Energy Procurement80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 9. It is the intent of the Legislature to later appropriate five million dollars ($5,000,000) in the annual Budget Act to serve as startup funds in the Climate and Equity Trust Fund established pursuant to Section 19020 of the Public Utilities Code for the California Affordable Decarbonization Authority established pursuant to Section 19010 of the Public Utilities Code. It is further the intent of the Legislature that the moneys appropriated as startup funds are repaid by the authority.
Amended IN Senate April 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1020Introduced by Senator Senators Laird, Caballero, Durazo, and AtkinsFebruary 14, 2022An act to amend Section 38561 of the Health and Safety Code, relating to greenhouse gases. to amend Section 454.53 of, to add Sections 352.8 and 454.59 to, and to add Division 8 (commencing with Section 19000) to, the Public Utilities Code, and to add Division 27.5 (commencing with Section 80400) to the Water Code, relating to climate change, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 1020, as amended, Laird. California Global Warming Solutions Act of 2006: scoping plan. Clean Energy, Jobs, and Affordability Act of 2022.The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years. The act requires the state board to conduct a series of public workshops to give interested parties an opportunity to comment on the plan and requires a portion of those workshops to be conducted in regions of the state that have the most significant exposure to air pollutants, including communities with minority populations, communities with low-income populations, or both.This bill instead would modify, with respect to the provision that a portion of the workshops be conducted in regions of the state that have the most significant exposure to air pollutants, the above-described included communities as additionally being areas designated as federal extreme nonattainment.Under existing law, it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045.This bill would revise that state policy to instead provide that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2030, as specified.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the PUC to ensure that facilities needed to maintain the reliability of the electrical supply remain available and operational.Existing law establishes an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the PUC, ISO, transmission owners, users, and consumers, to adopt a strategic plan for the states electrical transmission grid using existing resources in order to identify and recommend actions required to implement investments needed to ensure reliability, relieve congestion, and meet future growth in load and generation. This bill would authorize the PUC and Energy Commission, upon request of the ISO, to disclose to the ISO confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning.This bill would require the PUC and Energy Commission to jointly authorize the establishment of the California Affordable Decarbonization Authority as a nonprofit public benefit corporation and to take all necessary measures to create the authority. The bill would require the authority to be governed by an independent board of directors appointed by the Governor, Speaker of the Assembly, and Senate Committee on Rules, as specified. The bill would require the authority to maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act and the California Public Records Act. The bill would establish the Climate and Equity Trust Fund as a trust fund, separate and apart from all public moneys or funds of the state, and would continuously appropriate the moneys in the trust fund to the authority for the benefit of electricity customers and to promote affordable electricity rates, as specified, thereby making an appropriation. The bill would authorize disbursements from the trust fund to be made through direct credits on ratepayer bills, direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers, and reimbursement of eligible costs incurred by an electrical corporation, electric service provider, community choice aggregator, or local publicly owned electric utility in the form of matching funds. The bill would require the authority to submit annual and multiyear spending plans for review and approval to the PUC and the Energy Commission before disbursing trust fund moneys.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because certain of the above provisions would be part of the act and a violation of a PUC action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would provide that it is the intent of the Legislature to later appropriate $5,000,000 in the annual Budget Act to serve as startup funds in the trust fund for the authority and for the authority to repay those startup funds.Digest Key Vote: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: YES Local Program: NOYES
Amended IN Senate April 18, 2022
Amended IN Senate April 18, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 1020
Introduced by Senator Senators Laird, Caballero, Durazo, and AtkinsFebruary 14, 2022
Introduced by Senator Senators Laird, Caballero, Durazo, and Atkins
February 14, 2022
An act to amend Section 38561 of the Health and Safety Code, relating to greenhouse gases. to amend Section 454.53 of, to add Sections 352.8 and 454.59 to, and to add Division 8 (commencing with Section 19000) to, the Public Utilities Code, and to add Division 27.5 (commencing with Section 80400) to the Water Code, relating to climate change, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1020, as amended, Laird. California Global Warming Solutions Act of 2006: scoping plan. Clean Energy, Jobs, and Affordability Act of 2022.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years. The act requires the state board to conduct a series of public workshops to give interested parties an opportunity to comment on the plan and requires a portion of those workshops to be conducted in regions of the state that have the most significant exposure to air pollutants, including communities with minority populations, communities with low-income populations, or both.This bill instead would modify, with respect to the provision that a portion of the workshops be conducted in regions of the state that have the most significant exposure to air pollutants, the above-described included communities as additionally being areas designated as federal extreme nonattainment.Under existing law, it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045.This bill would revise that state policy to instead provide that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2030, as specified.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the PUC to ensure that facilities needed to maintain the reliability of the electrical supply remain available and operational.Existing law establishes an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the PUC, ISO, transmission owners, users, and consumers, to adopt a strategic plan for the states electrical transmission grid using existing resources in order to identify and recommend actions required to implement investments needed to ensure reliability, relieve congestion, and meet future growth in load and generation. This bill would authorize the PUC and Energy Commission, upon request of the ISO, to disclose to the ISO confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning.This bill would require the PUC and Energy Commission to jointly authorize the establishment of the California Affordable Decarbonization Authority as a nonprofit public benefit corporation and to take all necessary measures to create the authority. The bill would require the authority to be governed by an independent board of directors appointed by the Governor, Speaker of the Assembly, and Senate Committee on Rules, as specified. The bill would require the authority to maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act and the California Public Records Act. The bill would establish the Climate and Equity Trust Fund as a trust fund, separate and apart from all public moneys or funds of the state, and would continuously appropriate the moneys in the trust fund to the authority for the benefit of electricity customers and to promote affordable electricity rates, as specified, thereby making an appropriation. The bill would authorize disbursements from the trust fund to be made through direct credits on ratepayer bills, direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers, and reimbursement of eligible costs incurred by an electrical corporation, electric service provider, community choice aggregator, or local publicly owned electric utility in the form of matching funds. The bill would require the authority to submit annual and multiyear spending plans for review and approval to the PUC and the Energy Commission before disbursing trust fund moneys.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because certain of the above provisions would be part of the act and a violation of a PUC action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would provide that it is the intent of the Legislature to later appropriate $5,000,000 in the annual Budget Act to serve as startup funds in the trust fund for the authority and for the authority to repay those startup funds.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years. The act requires the state board to conduct a series of public workshops to give interested parties an opportunity to comment on the plan and requires a portion of those workshops to be conducted in regions of the state that have the most significant exposure to air pollutants, including communities with minority populations, communities with low-income populations, or both.
This bill instead would modify, with respect to the provision that a portion of the workshops be conducted in regions of the state that have the most significant exposure to air pollutants, the above-described included communities as additionally being areas designated as federal extreme nonattainment.
Under existing law, it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045.
This bill would revise that state policy to instead provide that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2030, as specified.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the PUC to ensure that facilities needed to maintain the reliability of the electrical supply remain available and operational.
Existing law establishes an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the PUC, ISO, transmission owners, users, and consumers, to adopt a strategic plan for the states electrical transmission grid using existing resources in order to identify and recommend actions required to implement investments needed to ensure reliability, relieve congestion, and meet future growth in load and generation.
This bill would authorize the PUC and Energy Commission, upon request of the ISO, to disclose to the ISO confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning.
This bill would require the PUC and Energy Commission to jointly authorize the establishment of the California Affordable Decarbonization Authority as a nonprofit public benefit corporation and to take all necessary measures to create the authority. The bill would require the authority to be governed by an independent board of directors appointed by the Governor, Speaker of the Assembly, and Senate Committee on Rules, as specified. The bill would require the authority to maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act and the California Public Records Act. The bill would establish the Climate and Equity Trust Fund as a trust fund, separate and apart from all public moneys or funds of the state, and would continuously appropriate the moneys in the trust fund to the authority for the benefit of electricity customers and to promote affordable electricity rates, as specified, thereby making an appropriation. The bill would authorize disbursements from the trust fund to be made through direct credits on ratepayer bills, direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers, and reimbursement of eligible costs incurred by an electrical corporation, electric service provider, community choice aggregator, or local publicly owned electric utility in the form of matching funds. The bill would require the authority to submit annual and multiyear spending plans for review and approval to the PUC and the Energy Commission before disbursing trust fund moneys.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because certain of the above provisions would be part of the act and a violation of a PUC action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would provide that it is the intent of the Legislature to later appropriate $5,000,000 in the annual Budget Act to serve as startup funds in the trust fund for the authority and for the authority to repay those startup funds.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Clean Energy, Jobs, and Affordability Act of 2022.SECTION 1.SEC. 2. Section 38561 of the Health and Safety Code is amended to read:38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.SEC. 3. Section 352.8 is added to the Public Utilities Code, to read:352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.SEC. 4. Section 454.53 of the Public Utilities Code is amended to read:454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.SEC. 5. Section 454.59 is added to the Public Utilities Code, to read:454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.SEC. 6. Division 8 (commencing with Section 19000) is added to the Public Utilities Code, to read:DIVISION 8. Climate and Equity Trust FundPART 1. General Provisions19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.PART 2. The California Affordable Decarbonization Authority19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.PART 3. The Climate and Equity Trust Fund19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.PART 4. Responsibilities of the Authority19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.PART 5. Responsibilities of the Public Utilities Commission and Energy Commission19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.SEC. 7. Division 27.5 (commencing with Section 80400) is added to the Water Code, to read:DIVISION 27.5. State Water Project Energy Procurement80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 9. It is the intent of the Legislature to later appropriate five million dollars ($5,000,000) in the annual Budget Act to serve as startup funds in the Climate and Equity Trust Fund established pursuant to Section 19020 of the Public Utilities Code for the California Affordable Decarbonization Authority established pursuant to Section 19010 of the Public Utilities Code. It is further the intent of the Legislature that the moneys appropriated as startup funds are repaid by the authority.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Clean Energy, Jobs, and Affordability Act of 2022.
SECTION 1. This act shall be known, and may be cited, as the Clean Energy, Jobs, and Affordability Act of 2022.
SECTION 1. This act shall be known, and may be cited, as the Clean Energy, Jobs, and Affordability Act of 2022.
### SECTION 1.
SECTION 1.SEC. 2. Section 38561 of the Health and Safety Code is amended to read:38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.
SECTION 1.SEC. 2. Section 38561 of the Health and Safety Code is amended to read:
### SECTION 1.SEC. 2.
38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.
38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.
38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.
38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.
(b) The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.
(c) In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.
(d) The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to Californias economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.
(e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.
(f) In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.
(g) The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.
(h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.
SEC. 3. Section 352.8 is added to the Public Utilities Code, to read:352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.
SEC. 3. Section 352.8 is added to the Public Utilities Code, to read:
### SEC. 3.
352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.
352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.
352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.
352.8. Upon request of the Independent System Operator, the commission and Energy Commission may disclose to the Independent System Operator confidential information relating to power purchase agreements with electric generation and energy storage projects for purposes of transmission planning. Confidential information disclosed to the Independent System Operator pursuant to this section is not a waiver of an exemption from public disclosure pursuant to Section 7921.505 of the Government Code and shall not require public disclosure of the confidential information.
SEC. 4. Section 454.53 of the Public Utilities Code is amended to read:454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
SEC. 4. Section 454.53 of the Public Utilities Code is amended to read:
### SEC. 4.
454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
454.53. (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2045. 2030. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.
(b) The commission, Energy Commission, state board, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:
(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.
(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.
(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.
(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.
(c) Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).
(d) The commission, Energy Commission, and state board State Air Resources Board shall do both of the following:
(1) Utilize Use programs authorized under existing statutes to achieve the policy described in subdivision (a).
(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:
(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.
(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).
(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.
(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).
(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.
(e) Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.
(f) This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
SEC. 5. Section 454.59 is added to the Public Utilities Code, to read:454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.
SEC. 5. Section 454.59 is added to the Public Utilities Code, to read:
### SEC. 5.
454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.
454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.
454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.
454.59. (a) This section applies to the obligations on a state agency, except the State Water Resources Development System commonly known as the State Water Project, imposed pursuant to subdivision (a) of Section 454.53.
(b) Each state agency shall ensure that zero-carbon resources and eligible renewable energy resources supply 100 percent of electricity procured on its behalf by December 31, 2030.
(c) A state agency may satisfy the requirement in subdivision (b) by doing either of the following:
(1) Installing zero-carbon resources or eligible renewable energy resources on state-owned or state-leased buildings to serve the state agencys onsite load.
(2) Procuring zero-carbon resources or eligible renewable energy resources through the local publicly owned electric utility or load-serving entity, as defined in Section 380, providing retail service to the state agency.
(d) New procurement commitments made on behalf of a state agency by its retail seller or local publicly owned electric utility after June 1, 2022, for zero-carbon resources or eligible renewable energy resources to serve the state agency shall satisfy all of the following criteria:
(1) The zero-carbon resource or eligible renewable energy resource shall be newly developed as a result of contracting and reach initial commercial operations on or after January 1, 2023.
(2) An eligible renewable energy resource or storage product shall be required to satisfy either of the criteria specified in paragraph (1) of subdivision (b) of Section 399.16.
(3) The zero-carbon resource or eligible renewable energy resource shall be located within California and interconnected in front of a customer meter.
(4) The retail seller or local publicly owned electric utility shall require its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the zero-carbon resource or eligible renewable energy resource. The project labor agreement shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.
(5) The retail seller or local publicly owned electric utility shall exclude the retail sales to a state agency customer from any compliance obligations relating to zero-carbon resources or eligible renewable energy resources. Any renewable energy credits or environmental attributes associated with incremental procurement pursuant to this section shall be retired on behalf of the state agency customer and shall not be further sold, transferred, or otherwise monetized for any purpose.
(e) Zero-carbon resource or eligible renewable energy resource procurement commitments made on behalf of a state agency shall give preference to resource options expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.
SEC. 6. Division 8 (commencing with Section 19000) is added to the Public Utilities Code, to read:DIVISION 8. Climate and Equity Trust FundPART 1. General Provisions19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.PART 2. The California Affordable Decarbonization Authority19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.PART 3. The Climate and Equity Trust Fund19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.PART 4. Responsibilities of the Authority19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.PART 5. Responsibilities of the Public Utilities Commission and Energy Commission19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.
SEC. 6. Division 8 (commencing with Section 19000) is added to the Public Utilities Code, to read:
### SEC. 6.
DIVISION 8. Climate and Equity Trust FundPART 1. General Provisions19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.PART 2. The California Affordable Decarbonization Authority19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.PART 3. The Climate and Equity Trust Fund19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.PART 4. Responsibilities of the Authority19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.PART 5. Responsibilities of the Public Utilities Commission and Energy Commission19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.
DIVISION 8. Climate and Equity Trust FundPART 1. General Provisions19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.PART 2. The California Affordable Decarbonization Authority19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.PART 3. The Climate and Equity Trust Fund19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.PART 4. Responsibilities of the Authority19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.PART 5. Responsibilities of the Public Utilities Commission and Energy Commission19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.
DIVISION 8. Climate and Equity Trust Fund
DIVISION 8. Climate and Equity Trust Fund
PART 1. General Provisions19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.
PART 1. General Provisions
PART 1. General Provisions
19000. In enacting this division, it is the intent of the Legislature to do all of the following:(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:(1) Stable and affordable electricity rates.(2) Decarbonization and clean energy initiatives.(3) Transportation and building electrification initiatives.(4) Distributed energy resource programs.(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(6) Equity initiatives to assist electricity customers in disadvantaged communities.(7) Wildfire mitigation activities.(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).
19000. In enacting this division, it is the intent of the Legislature to do all of the following:
(a) Establish the Climate and Equity Trust Fund to support the costs of decarbonization, clean energy, and wildfire mitigation activities with funding sources outside of electricity rates.
(b) Establish the California Affordable Decarbonization Authority to administer the Climate and Equity Trust Fund.
(c) Provide jurisdiction to the Energy Commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by local publicly owned electric utilities and end-use customers of local publicly owned electric utilities.
(d) Provide jurisdiction to the commission to approve the disbursement of funds from the Climate and Equity Trust Fund for eligible costs incurred by electrical corporations, community choice aggregators, and end-use customers of retail sellers regulated by the commission.
(e) Authorize the disbursement of funds from the Climate and Equity Trust Fund to support all of the following:
(1) Stable and affordable electricity rates.
(2) Decarbonization and clean energy initiatives.
(3) Transportation and building electrification initiatives.
(4) Distributed energy resource programs.
(5) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.
(6) Equity initiatives to assist electricity customers in disadvantaged communities.
(7) Wildfire mitigation activities.
(f) Identify sources of funding outside of electricity rates that can be used to support the purposes identified in subdivision (e).
19001. For purposes of this division, the following definitions apply:(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.(c) Load-serving entity has the same meaning as defined in Section 380.(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(e) Retail seller has the same meaning as defined in Section 399.12.(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.
19001. For purposes of this division, the following definitions apply:
(a) Authority means the California Affordable Decarbonization Authority established pursuant to Section 19010.
(b) Eligible renewable energy resources has the same meaning as defined in Section 399.12.
(c) Load-serving entity has the same meaning as defined in Section 380.
(d) Local publicly owned electric utility has the same meaning as defined in Section 224.3.
(e) Retail seller has the same meaning as defined in Section 399.12.
(f) Trust means the Climate and Equity Trust Fund established pursuant to Section 19020.
PART 2. The California Affordable Decarbonization Authority19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.
PART 2. The California Affordable Decarbonization Authority
PART 2. The California Affordable Decarbonization Authority
19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:(1) Three members shall be appointed by the Governor subject to Senate confirmation.(2) Two members shall be appointed by the Speaker of the Assembly.(3) Two members shall be appointed by the Senate Committee on Rules.(d) (1) Each member shall be appointed to a three-year term.(2) The initial appointment of the board shall be as follows:(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.(e) The appointing authority may reappoint a member upon the expiration of that members term.
19010. (a) The commission and the Energy Commission shall jointly authorize the establishment of the California Affordable Decarbonization Authority, and shall take all necessary measures to create the authority, including by appointing initial officers and staff and directing the development of incorporation documents, bylaws, and other corporate materials.
(b) Upon authorization by the commission and the Energy Commission, the authority shall be established as a nonprofit public benefit corporation pursuant to, and subject to, the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(c) The authority shall be governed by an independent board of directors consisting of seven members appointed as follows:
(1) Three members shall be appointed by the Governor subject to Senate confirmation.
(2) Two members shall be appointed by the Speaker of the Assembly.
(3) Two members shall be appointed by the Senate Committee on Rules.
(d) (1) Each member shall be appointed to a three-year term.
(2) The initial appointment of the board shall be as follows:
(A) The Governor shall appoint one member to a one-year term, one member to a two-year term, and one member to a three-year term.
(B) The Speaker of the Assembly shall appoint one member to a two-year term and one member to a three-year term.
(C) The Senate Committee on Rules shall appoint one member to a two-year term and one member to a three-year term.
(e) The appointing authority may reappoint a member upon the expiration of that members term.
19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.
19011. (a) The authority shall maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(b) The commission and the Energy Commission may jointly establish additional requirements relating to governance, structure, policies, and practices for the authority to the extent that those additional requirements are reasonable to ensure transparency, public accountability, and effective governance. Those requirements may include duties of care and conflict-of-interest standards for officers and directors of the authority.
19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.
19012. The authority shall operate consistent with applicable state laws and in the interests of the people of the state.
PART 3. The Climate and Equity Trust Fund19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.
PART 3. The Climate and Equity Trust Fund
PART 3. The Climate and Equity Trust Fund
19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.(b) The trust fund shall consist of all of the following moneys:(1) Moneys received from the federal government that are transferred to the trust fund.(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.(4) Interest earned on any moneys in the trust.(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.(6) All other moneys received by the trust fund from any other source.(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.
19020. (a) The Climate and Equity Trust Fund is hereby established as a trust fund, separate and apart from all public moneys or funds of this state.
(b) The trust fund shall consist of all of the following moneys:
(1) Moneys received from the federal government that are transferred to the trust fund.
(2) Moneys received from the Greenhouse Gas Reduction Fund that are transferred to the trust fund.
(3) Moneys from noncompliance penalties assessed by the commission, Energy Commission, or State Air Resources Board that are transferred to the trust fund.
(4) Interest earned on any moneys in the trust.
(5) Any properties or securities acquired through the use of moneys belonging to the trust and all earnings of those properties or securities.
(6) All other moneys received by the trust fund from any other source.
(c) Notwithstanding Section 13340 of the Government Code, the moneys in the Climate and Equity Trust Fund, and in any accounts in that fund, are continuously appropriated to the authority for purposes of this division.
19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.
19021. The authority shall administer the trust fund exclusively for the purposes of this division without liability upon the part of the state beyond the amounts paid into and earned by the trust fund.
19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.
19022. Withdrawals by the authority from the trust are exempt from Sections 925.4 and 925.6 of the Government Code.
PART 4. Responsibilities of the Authority19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.
PART 4. Responsibilities of the Authority
PART 4. Responsibilities of the Authority
19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.
19030. (a) The authority shall administer the trust fund for the benefit of electricity customers and to promote affordable electricity rates. The commission or Energy Commission may assign the authority additional duties and responsibilities.
(b) The authority shall submit annual and multiyear spending plans for review and approval to the commission and the Energy Commission as follows:
(1) The spending plan submitted to the Energy Commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of local publicly owned electric utilities.
(2) The spending plan submitted to the commission for review and approval shall identify proposed disbursements to support affordable electricity for end-use customers of load-serving entities.
(3) The spending plans shall include reasonable administrative, overhead, and transaction costs associated with the authoritys operation.
19031. Disbursements from the trust fund may be provided through any of the following methods:(a) Direct credits on ratepayer bills.(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.
19031. Disbursements from the trust fund may be provided through any of the following methods:
(a) Direct credits on ratepayer bills.
(b) Direct rebates or incentives to market participants, technology vendors, technology installers, and end-use customers. Rebates and incentives shall be designed to minimize burdens on homeowners and renters.
(c) Reimbursement of eligible costs incurred by a load-serving entity or local publicly owned electric utility in the form of matching funds.
19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:(1) Transportation electrification programs and incentives.(2) Building electrification programs and incentives.(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.(4) Programs to promote equity and affordability for low-income customers.(5) Wildfire mitigation activities.(6) Distributed energy resource incentives.(7) Administrative and overhead costs associated with the authoritys operation.(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.(b) Moneys in the trust fund shall not be used for either of the following costs:(1) Shareholder incentives or return on shareholder equity for an electrical corporation.(2) Administrative or overhead costs incurred by a state agency.
19032. (a) Eligible costs that may be reimbursed by the trust fund include, but are not limited to, all of the following:
(1) Transportation electrification programs and incentives.
(2) Building electrification programs and incentives.
(3) Public purpose programs, including energy efficiency programs, research and development, and low-income customer discounts.
(4) Programs to promote equity and affordability for low-income customers.
(5) Wildfire mitigation activities.
(6) Distributed energy resource incentives.
(7) Administrative and overhead costs associated with the authoritys operation.
(8) Any other purpose specified by the Legislature in an appropriation of moneys from the General Fund to the authority.
(b) Moneys in the trust fund shall not be used for either of the following costs:
(1) Shareholder incentives or return on shareholder equity for an electrical corporation.
(2) Administrative or overhead costs incurred by a state agency.
PART 5. Responsibilities of the Public Utilities Commission and Energy Commission19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.
PART 5. Responsibilities of the Public Utilities Commission and Energy Commission
PART 5. Responsibilities of the Public Utilities Commission and Energy Commission
19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.
19040. (a) The commission and Energy Commission shall each review and accept, modify, or reject the annual and multiyear spending plans submitted by the authority pursuant to Section 19030.
(b) Upon the approval of a plan by the commission or Energy Commission, or pursuant to other direction provided by the commission or Energy Commission, as applicable, the authority may disburse trust moneys pursuant to this division.
(c) The commission and Energy Commission shall jointly approve the authoritys annual administrative and overhead costs if those costs are reasonable.
(d) The commission or Energy Commission shall regularly review the activities of the authority to ensure the trust fund is operated efficiently for the purposes authorized pursuant to this division.
SEC. 7. Division 27.5 (commencing with Section 80400) is added to the Water Code, to read:DIVISION 27.5. State Water Project Energy Procurement80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.
SEC. 7. Division 27.5 (commencing with Section 80400) is added to the Water Code, to read:
### SEC. 7.
DIVISION 27.5. State Water Project Energy Procurement80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.
DIVISION 27.5. State Water Project Energy Procurement80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.
DIVISION 27.5. State Water Project Energy Procurement
DIVISION 27.5. State Water Project Energy Procurement
80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.
80400. (a) The department shall procure newly developed eligible renewable energy resources and zero-carbon resources to satisfy the state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to subdivision (a) of Section 454.53 of the Public Utilities Code.
(b) All resources procured pursuant to subdivision (a) after February 1, 2022, shall satisfy all of the following criteria:
(1) The eligible renewable energy resources and zero-carbon resources shall be newly developed as a result of contracting by the department and reach initial commercial operations on or after January 1, 2023.
(2) The eligible renewable energy resources and zero-carbon resources shall be located within California and interconnected in front of a customer meter.
(3) The eligible renewable energy resources and zero-carbon resources shall be capable of being dispatched by the California balancing authority and operated for the benefit of the balancing area.
(c) In conducting procurement pursuant to subdivision (a), the department shall do all of the following:
(1) Give preference to procurement commitments expected to yield maximum long-term employment, stimulate new economic activity, generate local and state tax revenues, and assist with the development of new industries.
(2) Consider attributes, including resource adequacy, flexibility, and integration value, the ability to provide firm clean electricity, and local air quality benefits.
(3) Consider the results of integrated resource planning modeling conducted by the Public Utilities Commission pursuant to Section 454.52 of the Public Utilities Code.
(d) The department shall consider doing all of the following to reduce the costs of any procurement made pursuant to this section:
(1) Coordinate with the California Infrastructure and Economic Development Bank to make low-cost financing assistance available to new projects included in any procurement commitments.
(2) Coordinate with other state agencies to identify incentives from existing programs for new projects included in any procurement commitments.
(3) If reasonably expected to provide incremental benefits, secure an ownership stake or royalties for any project or economic activity resulting from a contractual commitment.
(e) The department shall invite all electrical corporations, community choice aggregators, electric service providers, and local publicly owned electric utilities to voluntarily subscribe to its procurement commitments. A subscription shall be made available at the departments cost.
(f) Except for procured resources subject to a voluntary subscription described in subdivision (e), all resources procured pursuant to this section shall be used first to meet the departments own electricity needs. Additional procured resources shall be used to meet the accelerated zero-carbon resource targets of other state agencies. A renewable energy credit, as defined in Section 399.12 of the Public Utilities Code, associated with meeting the need of a state agency shall be retired and shall not be transferred or resold.
(g) The Independent System Operator, other California balancing authorities, and electrical corporations shall expedite all interconnection requests for projects providing energy procured pursuant to this section.
(h) The department shall enter into an agreement to procure energy from a new energy generation facility only if the seller requires its contractors to use a multicraft project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code, for construction of the facility. Those project labor agreements shall conform to the industry standard agreements recently used for other similar private projects, including side letters for high-voltage transmission and related work.
SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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SEC. 9. It is the intent of the Legislature to later appropriate five million dollars ($5,000,000) in the annual Budget Act to serve as startup funds in the Climate and Equity Trust Fund established pursuant to Section 19020 of the Public Utilities Code for the California Affordable Decarbonization Authority established pursuant to Section 19010 of the Public Utilities Code. It is further the intent of the Legislature that the moneys appropriated as startup funds are repaid by the authority.
SEC. 9. It is the intent of the Legislature to later appropriate five million dollars ($5,000,000) in the annual Budget Act to serve as startup funds in the Climate and Equity Trust Fund established pursuant to Section 19020 of the Public Utilities Code for the California Affordable Decarbonization Authority established pursuant to Section 19010 of the Public Utilities Code. It is further the intent of the Legislature that the moneys appropriated as startup funds are repaid by the authority.
SEC. 9. It is the intent of the Legislature to later appropriate five million dollars ($5,000,000) in the annual Budget Act to serve as startup funds in the Climate and Equity Trust Fund established pursuant to Section 19020 of the Public Utilities Code for the California Affordable Decarbonization Authority established pursuant to Section 19010 of the Public Utilities Code. It is further the intent of the Legislature that the moneys appropriated as startup funds are repaid by the authority.
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