AB 523: Electric Program Investment Charge: allocation.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-10-07
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges. Existing law requires the Energy Commission to prepare and submit to Legislature an annual report regarding the operation of the EPIC program.
This bill would require the Energy Commission, until July 1, 2023, to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities, as defined. The bill would require the Energy Commission, under the EPIC program, to take into account adverse localized health impacts of proposed projects to the greatest extent possible, and give preference for funding to clean energy projects that benefit residents of low-income or disadvantaged communities. The bill would require the annual report regarding the operation of the EPIC program to include a description of the impact on program administration resulting from awarding funds to disadvantaged and low-income communities pursuant to the above provisions, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges. Existing law requires the Energy Commission to prepare and submit to Legislature an annual report regarding the operation of the EPIC program.
This bill would require the Energy Commission, until July 1, 2023, to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities, as defined. The bill would require the Energy Commission, under the EPIC program, to take into account adverse localized health impacts of proposed projects to the greatest extent possible, and give preference for funding to clean energy projects that benefit residents of low-income or disadvantaged communities. The bill would require the annual report regarding the operation of the EPIC program to include a description of the impact on program administration resulting from awarding funds to disadvantaged and low-income communities pursuant to the above provisions, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges. Existing law requires the Energy Commission to prepare and submit to Legislature an annual report regarding the operation of the EPIC program.
This bill would require the Energy Commission Commission, until July 1, 2023, to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities, as defined. The bill would require the Energy Commission, under the EPIC program, to take into account adverse localized health impacts of proposed projects to the greatest extent possible, and give preference for funding to clean energy projects that benefit residents of low-income or disadvantaged communities. The bill would require the annual report regarding the operation of the EPIC program to include a description of the impact on program administration resulting from awarding funds to disadvantaged and low-income communities pursuant to the above provisions, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges.
This bill would require the Energy Commission to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities, as defined. The bill would require the Energy Commission Commission, under the EPIC program, to take into account adverse localized health impacts of proposed projects to the greatest extent possible, and give preference for funding to clean energy projects under the EPIC program that benefit residents of low-income or disadvantaged communities.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges.
This bill would require the Energy Commission to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities, as defined. The bill would require the Energy Commission to give preference for funding to clean energy projects under the EPIC program that benefit residents of low-income or disadvantaged communities.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges.
This bill would require the Energy Commission to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, or and benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, or and benefiting, low-income communities, as defined. The bill would require the Energy Commission to give preference for funding to clean energy projects under the EPIC program that benefit residents of low-income or disadvantaged communities.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges.
This bill would require the Energy Commission to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in in, or benefiting, disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least 10% of the moneys in the fund for technology demonstration and deployment at sites located in, or benefiting, low-income communities, as defined. The bill would require the Energy Commission to give preference for funding to clean energy projects under the EPIC program that benefit residents of low-income or disadvantaged communities.
The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (EPIC) to fund renewable energy and research, development, and demonstration programs.
Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund.
Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the states statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges.
This bill would require the Energy Commission to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in disadvantaged communities, as defined. The bill would require the Energy Commission to allocate at least 10% of the moneys in the fund for technology demonstration and deployment at sites located in, or benefiting, low-income communities, as defined. The bill would require the Energy Commission to give preference for funding to clean energy projects under the EPIC program that benefit residents of low-income or disadvantaged communities.
In administering moneys in the fund for research, development, and demonstration programs under this chapter, the commission shall develop and implement the Electric Program Investment Charge (EPIC) program to do all of the following:
(a)Award funds for projects that will benefit electricity ratepayers and lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the states statutory energy goals and that result in a portfolio of projects that is strategically focused and sufficiently narrow to make advancement on the most significant technological challenges that shall include, but not be limited to, energy storage, renewable energy and its integration into the electrical grid, energy efficiency, integration of electric vehicles into the electrical grid, and accurately forecasting the availability of renewable energy for integration into the grid.
(b)In consultation with the Treasurer, establish terms that shall be imposed as a condition to receipt of funding for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program. The commission, when determining if imposition of the proposed terms is appropriate, shall balance the potential benefit to the state from those terms and the effect those terms may have on the state achieving its statutory energy goals. The commission shall require each reward recipient, as a condition of receiving moneys pursuant to this chapter, to agree to any terms the commission determines are appropriate for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program.
(c)Require each applicant to report how the proposed project may lead to technological advancement and potential breakthroughs to overcome barriers to achieving the states statutory energy goals.
(d)Take into account, when applicable, the adverse localized health impacts of proposed projects to the greatest extent possible.(e)Establish a process for tracking the progress and outcomes of each funded project, including an accounting of the amount of funds spent by program administrators and individual grant recipients on administrative and overhead costs and whether the project resulted in any technological advancement or breakthrough to overcome barriers to achieving the states statutory energy goals.
(f)Notwithstanding Section 10231.5 of the Government Code, prepare and submit to the Legislature no later than April 30 of each year an annual report in compliance with Section 9795 of the Government Code that shall include all of the following:
(1)A brief description of each project for which funding was awarded in the immediately prior calendar year, including the name of the recipient and the amount of the award, a description of how the project is thought to lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals, and a description of why the project was selected.
(2)A brief description of each project funded by the EPIC program that was completed in the immediately prior calendar year, including the name of the recipient, the amount of the award, and the outcomes of the funded project.
(3)A brief description of each project funded by the EPIC program for which an award was made in the previous years but that is not completed, including the name of the recipient and the amount of the award, and a description of how the project will lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals.
(4)Identification of the award recipients that are California-based entities, small businesses, or businesses owned by women, minorities, or disabled veterans.
(5)Identification of which awards were made through a competitive bid, interagency agreement, or sole source method, and the action of the Joint Legislative Budget Committee pursuant to paragraph (2) of subdivision (g) for each award made through an interagency agreement or sole source method.
(6)Identification of the total amount of administrative and overhead costs incurred for each project.
(7)A brief description of the impact on program administration from the allocations required to be made pursuant to Section 25711.6, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.
(g)Establish requirements to minimize program administration and overhead costs, including costs incurred by program administrators and individual grant recipients. Each program administrator and grant recipient, including a public entity, shall be required to justify actual administration and overhead costs incurred, even if the total costs incurred do not exceed a cap on those costs that the commission may adopt.
(h)(1)Use a sealed competitive bid as the preferred method to solicit project applications and award funds pursuant to the EPIC program.
(2)(A)The commission may use a sole source or interagency agreement method if the project cannot be described with sufficient specificity so that bids can be evaluated against specifications and criteria set forth in a solicitation for bid and if both of the following conditions are met:
(i)The commission, at least 60 days prior to making an award pursuant to this subdivision, notifies the Joint Legislative Budget Committee and the relevant policy committees in both houses of the Legislature, in writing, of its intent to take the proposed action.
(ii)The Joint Legislative Budget Committee either approves or does not disapprove the proposed action within 60 days from the date of notification required by clause (i).
(B)It is the intent of the Legislature to enact this paragraph to ensure legislative oversight for awards made on a sole source basis, or through an interagency agreement.
(3)Notwithstanding any other law, standard terms and conditions that generally apply to contracts between the commission and any entities, including state entities, do not automatically preclude the award of moneys from the fund through the sealed competitive bid method.
SEC. 2.Section 25711.6 is added to the Public Resources Code, to read:25711.6.(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities located in the state.
(d)Moneys allocated pursuant to subdivision (b) shall not count toward the allocation made pursuant to subdivision (c).
(e)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(f)This section shall become inoperative on July 1, 2023, and, as of January 1, 2024, is repealed.
In administering moneys in the fund for research, development, and demonstration programs under this chapter, the commission shall develop and implement the Electric Program Investment Charge (EPIC) program to do all of the following:
(a)Award funds for projects that will benefit electricity ratepayers and lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the states statutory energy goals and that result in a portfolio of projects that is strategically focused and sufficiently narrow to make advancement on the most significant technological challenges that shall include, but not be limited to, energy storage, renewable energy and its integration into the electrical grid, energy efficiency, integration of electric vehicles into the electrical grid, and accurately forecasting the availability of renewable energy for integration into the grid.
(b)In consultation with the Treasurer, establish terms that shall be imposed as a condition to receipt of funding for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program. The commission, when determining if imposition of the proposed terms is appropriate, shall balance the potential benefit to the state from those terms and the effect those terms may have on the state achieving its statutory energy goals. The commission shall require each reward recipient, as a condition of receiving moneys pursuant to this chapter, to agree to any terms the commission determines are appropriate for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program.
(c)Require each applicant to report how the proposed project may lead to technological advancement and potential breakthroughs to overcome barriers to achieving the states statutory energy goals.
(d)Take into account, when applicable, the adverse localized health impacts of proposed projects to the greatest extent possible.(e)Establish a process for tracking the progress and outcomes of each funded project, including an accounting of the amount of funds spent by program administrators and individual grant recipients on administrative and overhead costs and whether the project resulted in any technological advancement or breakthrough to overcome barriers to achieving the states statutory energy goals.
(f)Notwithstanding Section 10231.5 of the Government Code, prepare and submit to the Legislature no later than April 30 of each year an annual report in compliance with Section 9795 of the Government Code that shall include all of the following:
(1)A brief description of each project for which funding was awarded in the immediately prior calendar year, including the name of the recipient and the amount of the award, a description of how the project is thought to lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals, and a description of why the project was selected.
(2)A brief description of each project funded by the EPIC program that was completed in the immediately prior calendar year, including the name of the recipient, the amount of the award, and the outcomes of the funded project.
(3)A brief description of each project funded by the EPIC program for which an award was made in the previous years but that is not completed, including the name of the recipient and the amount of the award, and a description of how the project will lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals.
(4)Identification of the award recipients that are California-based entities, small businesses, or businesses owned by women, minorities, or disabled veterans.
(5)Identification of which awards were made through a competitive bid, interagency agreement, or sole source method, and the action of the Joint Legislative Budget Committee pursuant to paragraph (2) of subdivision (g) for each award made through an interagency agreement or sole source method.
(6)Identification of the total amount of administrative and overhead costs incurred for each project.
(7)A brief description of the impact on program administration from the allocations required to be made pursuant to Section 25711.6, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.
(g)Establish requirements to minimize program administration and overhead costs, including costs incurred by program administrators and individual grant recipients. Each program administrator and grant recipient, including a public entity, shall be required to justify actual administration and overhead costs incurred, even if the total costs incurred do not exceed a cap on those costs that the commission may adopt.
(h)(1)Use a sealed competitive bid as the preferred method to solicit project applications and award funds pursuant to the EPIC program.
(2)(A)The commission may use a sole source or interagency agreement method if the project cannot be described with sufficient specificity so that bids can be evaluated against specifications and criteria set forth in a solicitation for bid and if both of the following conditions are met:
(i)The commission, at least 60 days prior to making an award pursuant to this subdivision, notifies the Joint Legislative Budget Committee and the relevant policy committees in both houses of the Legislature, in writing, of its intent to take the proposed action.
(ii)The Joint Legislative Budget Committee either approves or does not disapprove the proposed action within 60 days from the date of notification required by clause (i).
(B)It is the intent of the Legislature to enact this paragraph to ensure legislative oversight for awards made on a sole source basis, or through an interagency agreement.
(3)Notwithstanding any other law, standard terms and conditions that generally apply to contracts between the commission and any entities, including state entities, do not automatically preclude the award of moneys from the fund through the sealed competitive bid method.
SEC. 2.Section 25711.6 is added to the Public Resources Code, to read:25711.6.(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities located in the state.
(d)Moneys allocated pursuant to subdivision (b) shall not count toward the allocation made pursuant to subdivision (c).
(e)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(f)This section shall become inoperative on July 1, 2023, and, as of January 1, 2024, is repealed.
In administering moneys in the fund for research, development, and demonstration programs under this chapter, the commission shall develop and implement the Electric Program Investment Charge (EPIC) program to do all of the following:
(a)Award funds for projects that will benefit electricity ratepayers and lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the states statutory energy goals and that result in a portfolio of projects that is strategically focused and sufficiently narrow to make advancement on the most significant technological challenges that shall include, but not be limited to, energy storage, renewable energy and its integration into the electrical grid, energy efficiency, integration of electric vehicles into the electrical grid, and accurately forecasting the availability of renewable energy for integration into the grid.
(b)In consultation with the Treasurer, establish terms that shall be imposed as a condition to receipt of funding for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program. The commission, when determining if imposition of the proposed terms is appropriate, shall balance the potential benefit to the state from those terms and the effect those terms may have on the state achieving its statutory energy goals. The commission shall require each reward recipient, as a condition of receiving moneys pursuant to this chapter, to agree to any terms the commission determines are appropriate for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program.
(c)Require each applicant to report how the proposed project may lead to technological advancement and potential breakthroughs to overcome barriers to achieving the states statutory energy goals.
(d)Take into account, when applicable, the adverse localized health impacts of proposed projects to the greatest extent possible.(e)Establish a process for tracking the progress and outcomes of each funded project, including an accounting of the amount of funds spent by program administrators and individual grant recipients on administrative and overhead costs and whether the project resulted in any technological advancement or breakthrough to overcome barriers to achieving the states statutory energy goals.
(f)Notwithstanding Section 10231.5 of the Government Code, prepare and submit to the Legislature no later than April 30 of each year an annual report in compliance with Section 9795 of the Government Code that shall include all of the following:
(1)A brief description of each project for which funding was awarded in the immediately prior calendar year, including the name of the recipient and the amount of the award, a description of how the project is thought to lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals, and a description of why the project was selected.
(2)A brief description of each project funded by the EPIC program that was completed in the immediately prior calendar year, including the name of the recipient, the amount of the award, and the outcomes of the funded project.
(3)A brief description of each project funded by the EPIC program for which an award was made in the previous years but that is not completed, including the name of the recipient and the amount of the award, and a description of how the project will lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals.
(4)Identification of the award recipients that are California-based entities, small businesses, or businesses owned by women, minorities, or disabled veterans.
(5)Identification of which awards were made through a competitive bid, interagency agreement, or sole source method, and the action of the Joint Legislative Budget Committee pursuant to paragraph (2) of subdivision (g) for each award made through an interagency agreement or sole source method.
(6)Identification of the total amount of administrative and overhead costs incurred for each project.
(7)A brief description of the impact on program administration from the allocations required to be made pursuant to Section 25711.6, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.
(g)Establish requirements to minimize program administration and overhead costs, including costs incurred by program administrators and individual grant recipients. Each program administrator and grant recipient, including a public entity, shall be required to justify actual administration and overhead costs incurred, even if the total costs incurred do not exceed a cap on those costs that the commission may adopt.
(h)(1)Use a sealed competitive bid as the preferred method to solicit project applications and award funds pursuant to the EPIC program.
(2)(A)The commission may use a sole source or interagency agreement method if the project cannot be described with sufficient specificity so that bids can be evaluated against specifications and criteria set forth in a solicitation for bid and if both of the following conditions are met:
(i)The commission, at least 60 days prior to making an award pursuant to this subdivision, notifies the Joint Legislative Budget Committee and the relevant policy committees in both houses of the Legislature, in writing, of its intent to take the proposed action.
(ii)The Joint Legislative Budget Committee either approves or does not disapprove the proposed action within 60 days from the date of notification required by clause (i).
(B)It is the intent of the Legislature to enact this paragraph to ensure legislative oversight for awards made on a sole source basis, or through an interagency agreement.
(3)Notwithstanding any other law, standard terms and conditions that generally apply to contracts between the commission and any entities, including state entities, do not automatically preclude the award of moneys from the fund through the sealed competitive bid method.
SEC. 2.Section 25711.6 is added to the Public Resources Code, to read:25711.6.(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities located in the state.
(d)Moneys allocated pursuant to subdivision (b) shall not count toward the allocation made pursuant to subdivision (c).
(e)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(f)This section shall become inoperative on July 1, 2023, and, as of January 1, 2024, is repealed.
In administering moneys in the fund for research, development, and demonstration programs under this chapter, the commission shall develop and implement the Electric Program Investment Charge (EPIC) program to do all of the following:
(a)Award funds for projects that will benefit electricity ratepayers and lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the states statutory energy goals and that result in a portfolio of projects that is strategically focused and sufficiently narrow to make advancement on the most significant technological challenges that shall include, but not be limited to, energy storage, renewable energy and its integration into the electrical grid, energy efficiency, integration of electric vehicles into the electrical grid, and accurately forecasting the availability of renewable energy for integration into the grid.
(b)In consultation with the Treasurer, establish terms that shall be imposed as a condition to receipt of funding for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program. The commission, when determining if imposition of the proposed terms is appropriate, shall balance the potential benefit to the state from those terms and the effect those terms may have on the state achieving its statutory energy goals. The commission shall require each reward recipient, as a condition of receiving moneys pursuant to this chapter, to agree to any terms the commission determines are appropriate for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program.
(c)Require each applicant to report how the proposed project may lead to technological advancement and potential breakthroughs to overcome barriers to achieving the states statutory energy goals.
(d)Take into account, when applicable, the adverse localized health impacts of proposed projects to the greatest extent possible.
(d)(e)Establish a process for tracking the progress and outcomes of each funded project, including an accounting of the amount of funds spent by program administrators and individual grant recipients on administrative and overhead costs and whether the project resulted in any technological advancement or breakthrough to overcome barriers to achieving the states statutory energy goals.
(e)(f)Notwithstanding Section 10231.5 of the Government Code, prepare and submit to the Legislature no later than April 30 of each year an annual report in compliance with Section 9795 of the Government Code that shall include all of the following:
(1)A brief description of each project for which funding was awarded in the immediately prior calendar year, including the name of the recipient and the amount of the award, a description of how the project is thought to lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals, and a description of why the project was selected.
(2)A brief description of each project funded by the EPIC program that was completed in the immediately prior calendar year, including the name of the recipient, the amount of the award, and the outcomes of the funded project.
(3)A brief description of each project funded by the EPIC program for which an award was made in the previous years but that is not completed, including the name of the recipient and the amount of the award, and a description of how the project will lead to technological advancement or breakthroughs to overcome barriers to achieving the states statutory energy goals.
(4)Identification of the award recipients that are California-based entities, small businesses, or businesses owned by women, minorities, or disabled veterans.
(5)Identification of which awards were made through a competitive bid, interagency agreement, or sole source method, and the action of the Joint Legislative Budget Committee pursuant to paragraph (2) of subdivision (g) for each award made through an interagency agreement or sole source method.
(6)Identification of the total amount of administrative and overhead costs incurred for each project.
(f)(g)Establish requirements to minimize program administration and overhead costs, including costs incurred by program administrators and individual grant recipients. Each program administrator and grant recipient, including a public entity, shall be required to justify actual administration and overhead costs incurred, even if the total costs incurred do not exceed a cap on those costs that the commission may adopt.
(g)(1)The commission shall use(h)Use a sealed competitive bid as the preferred method to solicit project applications and award funds pursuant to the EPIC program.
(2)(A)The commission may use a sole source or interagency agreement method if the project cannot be described with sufficient specificity so that bids can be evaluated against specifications and criteria set forth in a solicitation for bid and if both of the following conditions are met:
(i)The commission, at least 60 days prior to making an award pursuant to this subdivision, notifies the Joint Legislative Budget Committee and the relevant policy committees in both houses of the Legislature, in writing, of its intent to take the proposed action.
(ii)The Joint Legislative Budget Committee either approves or does not disapprove the proposed action within 60 days from the date of notification required by clause (i).
(B)It is the intent of the Legislature to enact this paragraph to ensure legislative oversight for awards made on a sole source basis, or through an interagency agreement.
(3)Notwithstanding any other law, standard terms and conditions that generally apply to contracts between the commission and any entities, including state entities, do not automatically preclude the award of moneys from the fund through the sealed competitive bid method.
SECTION 1.SEC. 2.Section 25711.6 is added to the Public Resources Code, to read:25711.6.(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities located in the state.
(d)Moneys allocated pursuant to subdivision (b) shall not count toward the allocation made pursuant to subdivision (c).
(e)The commission shall, if applicable, give the fullest possible consideration to an applicants analysis identifying potential adverse localized health impacts.(f)(e)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities located in the state.
(d)Moneys allocated pursuant to subdivision (b) shall not count toward the allocation made pursuant to subdivision (c).
(e)The commission shall, if applicable, give the fullest possible consideration to an applicants analysis identifying potential adverse localized health impacts.
(e)(f)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, or and benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, or and benefiting, low-income communities located in the state.
(d)Moneys allocated pursuant to subdivision (b) shall not count toward the allocation made pursuant to subdivision (c).
(d)(e)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the State Income Limits state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in in, or benefiting, disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, or benefiting, low-income communities located in the state.
(d)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the State Income Limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
(a)The commission shall give preference for funding pursuant to this chapter to clean energy projects that benefit residents of low-income or disadvantaged communities.
(b)The commission shall expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in disadvantaged communities.
(c)The commission shall expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, or benefiting, low-income communities located in the state.
(d)For purposes of this section, the following definitions apply:
(1)Disadvantaged communities means communities identified pursuant to Section 39711 of the Health and Safety Code.
(2)Low-income communities means communities within census tracts with median household incomes at or below either of the following levels:
(A)Eighty percent of the statewide median income.
(B)The applicable low-income threshold listed in the State Income Limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
|
Date
|
Status
|
|---|---|
| Oct 7, 2017 | Chaptered by Secretary of State - Chapter 551, Statutes of 2017. |
| Oct 7, 2017 | Approved by the Governor. |
| Sep 25, 2017 | Enrolled and presented to the Governor at 12 p.m. |
| Sep 14, 2017 | Reconsideration granted. |
| Sep 13, 2017 | Assembly Rule 77(a) suspended. |
| Sep 12, 2017 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 14 pursuant to Assembly Rule 77. |
| Sep 11, 2017 | Read third time. Passed. Ordered to the Assembly. |
| Sep 6, 2017 | Read second time and amended. Ordered to third reading. |
| Sep 5, 2017 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (September 1). |
| Jul 10, 2017 | In committee: Referred to APPR. suspense file. |
| Jun 28, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 27, 2017 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 20). |
| Jun 13, 2017 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U. & C. |
| Jun 8, 2017 | Referred to Com. on E., U. & C. |
| May 30, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 51. Noes 20. Page 1784.) |
| May 18, 2017 | Read third time and amended. Ordered to third reading. (Ayes 45. Noes 25. Page 1612.) |
| Apr 27, 2017 | Read second time. Ordered to third reading. |
| Apr 26, 2017 | From committee: Do pass. (Ayes 12. Noes 4.) (April 26). |
| Apr 5, 2017 | Re-referred to Com. on APPR. |
| Apr 4, 2017 | Read second time and amended. |
| Apr 3, 2017 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (March 29). |
| Feb 27, 2017 | Referred to Com. on U. & E. |
| Feb 14, 2017 | From printer. May be heard in committee March 16. |
| Feb 13, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2017 | AB 523 REYES Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 13, 2017 | AB 523 REYES Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 11, 2017 | Assembly 3rd Reading AB523 Reyes et al. By Lara | Senate Floor |
Passed |
|
| Sep 1, 2017 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2017 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 20, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
|
| May 30, 2017 | AB 523 REYES Assembly Third Reading | Assembly Floor |
Passed |
|
| May 18, 2017 | AB 523 REYES Assembly Third Reading Amend By REYES Set #1 | Assembly Floor |
Passed |
|
| Apr 26, 2017 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Mar 29, 2017 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Utilities and Energy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Asian Pacific Environmental Network | * Support | Apr 26, 2017 |
| California Environmental Justice Alliance | ** Support | Sep 6, 2017 |
| Center For Biological Diversity | ** Support | Mar 27, 2017 |
| Center on Race, Poverty, and the Environment | ** Support | Mar 27, 2017 |
| Central California Asthma Collaborative | ** Support | Mar 27, 2017 |
| Climate Workers | ** Support | Mar 27, 2017 |
| Comite Progreso De Lamont | ** Support | Mar 27, 2017 |
| Committee For A Better Arwin | ** Support | Mar 27, 2017 |
| Committee for a Better Shafter | ** Support | Mar 27, 2017 |
| Communities for a Better Environment | ** Support | Mar 27, 2017 |
| Courage Campaign | ** Support | Mar 27, 2017 |
| Cultiva La Salud | ** Support | Mar 27, 2017 |
| Dolores Huerta Foundation | ** Support | Mar 27, 2017 |
| Earthworks | ** Support | Mar 27, 2017 |
| Environmental Defense Fund | ** Support | Sep 6, 2017 |
| Greenfield Walking Group | ** Support | Mar 27, 2017 |
| Leadership Council for Justice and Accountability | * Support | Mar 29, 2017 |
| Lideres Campesinas | ** Support | Mar 27, 2017 |
| Medical Advocates for Healthy Air | ** Support | Mar 27, 2017 |
| Movement Generation | ** Support | Mar 27, 2017 |
| Physicians for Social Responsibility, Los Angeles | ** Support | Mar 27, 2017 |
| PODER | ** Support | Mar 27, 2017 |
| San Francisco, City And County Of | * Support | Apr 26, 2017 |
| Sierra Club California | ** Support | Mar 27, 2017 |
| Silicon Valley Leadership Group | ** Support | Sep 6, 2017 |
| Women's Foundation of California | ** Support | Sep 6, 2017 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 523
Author:(Reyes)
As Amended Ver:September 6, 2017
Majority vote
ASSEMBLY: | 51-20 | (May 30, 2017) | SENATE: | 31-9 | (September 11, 2017) |
Original Committee Reference: U. & E.
SUMMARY: Requires the California Energy Commission (CEC) to allocate the Electric Program Investment Charge (EPIC) monies for projects in disadvantaged and low income communities. Specifically, this bill:
- Mandates the CEC spend 35% of its technology demonstration and deployment (TDD) funds at sites located in and benefiting disadvantaged (25%) and low-income (10%) communities, as defined.
- Specifies TDD monies allocated to low-income communities cannot count toward monies allocated to disadvantaged communities.
- Mandates the CEC to give, when applicable, the fullest possible consideration to adverse localized health impacts of proposed projects.
- Mandates the CEC to include in its annual report of EPIC programs a brief description of the impact from the TDD allocations proposed in this bill.
- Repeals the TDD allocations proposed in this bill after July 1, 2023.
The Senate amendments require consideration of adverse health impacts in EPIC funding, and repeal on July 1, 2023 the TDD allocations proposed in this bill.
FISCAL EFFECT: According to the Senate Appropriations Committee, this bill introduces cost pressure in the tens of millions to direct part of the CEC's $130 million in EPIC funds to disadvantaged and low-income communities.
COMMENTS:
- Purpose. According to the author, it is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. This bill helps achieve these goals by better targeting funding to the benefit of communities that need it the most.
- Background. In December 2011, the CPUC established the EPIC fund and designated the CEC and California's three major IOUs as administrators of the program. The purpose of the program is to invest in research projects that create and advance new energy solutions, foster regional innovation, and bring ideas from the lab to the marketplace. The CEC administers about $130 million per year of EPIC funds, approximately 80% of the total program budget. The CEC has three silos to which it allocates EPIC funds: 1) applied research and development, 2) TDD, and 3) market facilitation. The IOUs only fund TDD projects.
Among other provisions, SB 350 (De León), Chapter 547, Statutes of 2015, required the CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. The Barriers Study directly addressed the use of EPIC monies, recommending a minimum of 25% of TDD sites be located in disadvantaged communities.
- Changes to EPIC Underway. The CEC, in its 2016 Annual Report, adopted the allocation for disadvantaged communities put forward in this bill, and noted that 35.7% of TDD funding awarded in 2016 went to projects that included at least one site in a disadvantaged community. The CEC is also currently holding public workshops to discuss opportunities for disadvantaged and low-income communities to receive these funds.
Analysis Prepared by: Laura McWilliams / U. & E. / (916) 319-2083 FN: 0002176
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 523
:
SENATE ENERGY, U. & C. COMMITTEE: 9-0, 6/20/17
AYES: Hueso, Bradford, Cannella, Hill, McGuire, Skinner, Stern, Vidak, Wiener
NO VOTE RECORDED: Morrell, Hertzberg
SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/17
AYES: Lara, Beall, Bradford, Hill, Wiener
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 51-20, 5/30/17 - See last page for vote
SOURCE: California Environmental Justice Alliance
Women’s Foundation of California
DIGEST:
This bill requires the California Energy Commission (CEC) to allocate at least 25 percent of the monies for research, development, and demonstration programs from the Electric Program Investment Charge (EPIC) Fund for technology demonstration and deployment at sites located in and benefitting disadvantaged communities. This bill also requires that at least 10 percent of the monies in the fund (in addition to the 25 percent for disadvantaged communities) are allocated at sites located in and benefitting low-income communities.
Existing law:
- Establishes the State Energy Resources Conservation and Development Commission, otherwise known as the CEC. (Public Resources Code §25000 et seq.)
- Requires the CEC to administer various grants and loan programs. (Public Resources Code §25412.5)
- Directs the CEC to oversee much of the state’s investments in clean energy research, clean transportation, and energy efficiency. (Public Resources Code §§§25007, 25008, 25400)
- Declares that is the policy of California to aid in the interests of women, minority, disabled veteran, and lesbian, gay, bisexual, and transgender (LGBT) business enterprises, encourages greater economic opportunity for these groups and promotes competition among utilities to procure contracts with diverse businesses. (Public Utilities Code §8281)
- Authorizes the CEC to carry out, or cause to be carried out, under contract or other arrangements, research and development into alternative sources of energy, improvements in energy generation, transmission, and siting, fuel substitution, and other topics related to energy supply, demand, public safety, ecology, and conservation which are of particular statewide importance. (Public Resources Code §25216 (c))
- Requires the CEC to continuously carry out studies, research projects, data collection, and other activities required to assess the nature, extent, and distribution of energy resources to meet the needs of the state, including but not limited to, fossil fuels and solar, nuclear, and geothermal energy resources. It shall also carry out studies, technical assessments, research projects, and data collection directed to reducing wasteful, inefficient, unnecessary, or uneconomic uses of energy. (Public Resources Code §25401)
This bill:
- Requires the CEC to allocate at least 25 percent of the moneys in the fund for technology demonstration and deployment at sites located in and benefitting disadvantaged communities.
- Requires the CEC to expend at least 10 percent of the moneys (in addition to the 25 percent) appropriated from the fund for technology demonstration and deployment at sites located in, and benefitting, low-income communities in the state.
- Requires the CEC to, if applicable, take into account the adverse localized health impacts of proposed projects to be funded by the EPIC program.
- Defines disadvantaged communities to mean communities identified pursuant to Section 39711 of the Health and Safety Code.
- Defines low-income communities to mean communities within census tracts with median household incomes at or below either of the following levels:
- Eighty percent of the statewide median income.
- The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
- Requires the CEC to include a brief description of the impact of the allocations required by this bill on the program’s administration in order to inform future legislative decisions on whether to reauthorize those allocations.
- Makes the allocations inoperative on July 1, 2023.
Background
EPIC. The California Public Utilities Commission (CPUC) established the purpose and governance for EPIC in Decision 12-05-037 on May 24, 2012. In the decision, the CPUC designated four administrators for the program – the CEC to oversee 80 percent of the funds and the remaining 20 percent to be administrated by the three investor owned electric utilities (IOUs). The CEC’s portion of the funds provides funding for applied research and development, technology and demonstration and deployment, and market facilitation for clean energy technologies and approaches for the benefits of the ratepayers of the three IOUs. Projects funded must address strategic objectives and funding initiatives as detailed in the appropriate EPIC Investment Plan.
CEC resolution. On April 8, 2015, the CEC adopted a resolution to implement a policy to reflect the CEC’s commitment to diversity outreach for all its programs, including grants, loans and procurement opportunities. The resolution notes the unique ability of the CEC to promote diversity by providing opportunities for increased participation in CEC programs of small businesses and women, disabled veteran, minority, and lesbian, gay, bisexual, and transgender owned businesses. AB 865 (Alejo, Chapter 583, Statutes of 2015) further bolsters the CEC’s efforts by providing more specificity regarding how the CEC will achieve and measure its commitment to support increased diversity in granting programs and other efforts.
SB 350 barriers study. In response to the requirements in SB 350 (De León, Chapter 547, Statutes of 2015) the CEC released a report regarding the barriers faced by disadvantaged and low-income communities to fully participate in the state’s clean energy programs, including the EPIC program. The report included many recommendations, including that the CEC’s EPIC program should “target a minimum of 25 percent of technology demonstration and deployment funding for sites located in disadvantaged communities.” This bill attempts to implement this recommendation and go further in requiring an additional 10 percent investment in and to benefit low-income residents. The author and sponsors note these are opportunities to provide polluted communities clean, green solutions.
Definitions. This bill’s definitions for disadvantaged and low-income communities are consistent with those used in both SB 535 (De León, Chapter 830, Statutes of 2012) and AB 1550 (Gomez, Chapter 369, Statutes of 2016).
Ratepayer effects. The proposal does not affect the overall amount already authorized from ratepayers for the CEC’s EPIC portion – namely $125 million per year. However, the bill raises the questions as to whether the proposed allocation requirements would further support the goals of the EPIC funding and the state’s clean energy goals.
Related/Prior Legislation
SB 350 (De León, Chapter 547, Statutes of 2015) required, among other provisions, the CEC to study barriers for low-income customers to access solar photovoltaic, other renewable energy, energy efficiency, and weatherization investments.
AB 865 (Alejo, Chapter 583, Statutes of 2015) required the CEC to develop an outreach program to inform women, minorities, disabled veterans, and LGBT individuals of CEC funding programs and procurement opportunities.
AB 340 (Bradford, 2013) would have required the CPUC to establish a program to encourage the use of women, minority, and disabled veteran business enterprises as prime contractors and subcontractors for all grants, contracts, subsidies, financing, and activities administered through the EPIC. The bill was vetoed by the Governor.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, cost pressures in the tens of millions to direct funding to residents of low-income or disadvantaged communities and to low-income communities, as specified.
According to the CEC’s Web page, “EPIC funds will provide approximately $162 million annually from 2012‐2020 primarily to address policy and funding gaps related to the development, deployment, and commercialization of next generation clean energy technologies. Of this amount, the California Energy Commission administers approximately $130 million per year.”
This program is a ratepayer funded program. The state represents approximately one to two percent of ratepayers. To the extent that this bill results programmatic inefficiencies or increases in the ratepayer charge to fund the program, the state will incur cots as a ratepayer.
California Environmental Justice Alliance (co-source)
Women’s Foundation of California (co-source)
Environmental Defense Fund
Silicon Valley Leadership Group
None received
ARGUMENTS IN SUPPORT: According to the author:
Renewable energy spending, research and programs are not reaching low income and disadvantaged communities who are the most impacted by fossil fuel energy production. It is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. AB 523 helps achieve these goals by better targeting funding in and to the benefit of communities that need it the most.
ASSEMBLY FLOOR: 51-20, 5/30/17
AYES: Arambula, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Levine, Limón, Low, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chen, Cunningham, Fong, Gallagher, Harper, Kiley, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte, Patterson, Ting, Waldron
NO VOTE RECORDED: Aguiar-Curry, Berman, Chau, Chávez, Choi, Dahle, Eggman, Flora, Voepel
9/6/17 16:02:27
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
AB 523 (Reyes) - Electric Program Investment Charge: allocation
Version: June 28, 2017 | Policy Vote: E., U., & C. 9 - 0 |
Urgency: No | Mandate: No |
Hearing Date: September 1, 2017 | Consultant: Narisha Bonakdar |
Bill Summary:
AB 523 requires the California Energy Commission (CEC) to allocate 25 percent of Electric Program Investment Charge (EPIC) funds to residents of low-income or disadvantaged communities and 10 percent to low-income communities.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on September 1, 2017
Fiscal Impact:
Cost pressures in the tens of millions to direct (EPIC) funds to residents of low-income or disadvantaged communities and to low-income communities, as specified. (The CEC administers about $130 million per year of EPIC funds.)
Committee Amendments:
- Add minor reporting requirement.
- Add sunset after five years.
-- END --
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
AB 523 (Reyes) - Electric Program Investment Charge: allocation
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 523 requires the California Energy Commission (CEC) to allocate 25 percent of Electric Program Investment Charge (EPIC) funds to residents of low-income or disadvantaged communities and 10 percent to low-income communities.
Fiscal Impact:
Cost pressures in the tens of millions to direct funding to residents of low-income or disadvantaged communities and to low-income communities, as specified.
Background:
- In December 2011, the Public Utilities Commission (PUC) established the EPIC fund and designated the CEC and California’s three major investor-owned utilities (IOUs) as administrators of the program. The purpose of the program is to invest in research projects to create and advance new energy solutions, foster regional innovation, and bring ideas from the lab to the marketplace. The CEC administers about $130 million per year of EPIC funds, approximately 80% of the total program budget. The CEC has three silos to which it allocates EPIC funds: 1) applied research and development; 2) TDD; and market facilitation. The IOUs only fund TDD projects.
Among other provisions, SB 350 (De León), Chapter 547, Statutes of 215, required CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. The Barriers Study directly addressed the use of EPIC monies, recommending a minimum of 25% of TDD sites be located in disadvantaged communities.
Proposed Law:
This bill:
- Adds to the list of Electric Program Investment Charge (EPIC) program goals, the CEC take into account, when applicable, the adverse localized health impacts of proposed projects to the greatest extent possible.
- Requires the CEC to give preference for funding to clean energy projects that benefit residents of low-income or disadvantaged communities.
- Requires the CEC to expend at least 25 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities.
- Requires the CEC to expend at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities located in the state.
Related Legislation:
SB 350 (De León, Chapter 547, Statutes of 2015) among other provisions, required the CEC to study barriers for low-income customers to access solar photovoltaic, other renewable energy, energy efficiency, and weatherization investments.
AB 865 (Alejo, Chapter 583, Statutes of 2015) required the CEC to develop an outreach program to inform women, minorities, disabled veterans, and gay, lesbian, bisexual, and transgender individuals of CEC funding programs and procurement opportunities.
AB 340 (Bradford, 2013) would have required the Public Utilities Commission (PUC) to establish a program to encourage the use of women, minority, and disabled veteran business enterprises (WMDVBEs) as prime contractors and subcontractors for all grants, contracts, subsidies, financing, and activities administered through the Electric Program Investment Charge (EPIC). The bill was vetoed by the Governor.
Staff Comments:
According to the CEC’s webpage, “EPIC funds will provide approximately $162 million annually from 2012‐2020 primarily to address policy and funding gaps related to the development, deployment, and commercialization of next generation clean energy technologies. Of this amount, the California Energy Commission administers approximately $130 million per year.”
This bill would result in the redirection of up to $45.5 million (presumably some of it would go to eligible uses absent the bill) to eligible low-income communities or households. Funding carve-outs can play an important role in ensuring that public funds are used to serve historically underserved or especially needy populations. They can also help leverage public funds for multiple state policy priorities. However, once codified, a funding set-aside can prevent administering agencies from dedicating funds to their highest and best purpose even as it related to the intended beneficiaries. While the set-aside required in this bill is consistent with state policy, it will result in the reduction of funding available for expenditure on projects that do not meet the set-aside criteria or pressure to increase funding overall to meet other program priority.
This program is a ratepayer funded program. The state represents approximately 1 to 2 percent of ratepayers. To the extent that this bill results programmatic inefficiencies or increases in the ratepayer charge to fund the program, the state will incur cots as a ratepayer.
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SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 6/20/2017
Author: | |||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill would require the California Energy Commission (CEC) to allocate at least 25 percent of the monies in the fund for technology demonstration and deployment at sites located in and benefitting, disadvantaged communities. This bill would also require that at least 10 percent of the monies in the fund are allocated at sites located in and benefitting low-income communities.
ANALYSIS:
Existing law:
- Establishes the State Energy Resources Conservation and Development Commission, otherwise known as the CEC. (Public Resources Code §25000 et seq.)
- Requires the CEC to administer various grants and loan programs. (Public Resources Code §25412.5)
- Directs the CEC to oversee much of the state’s investments in clean energy research, clean transportation, and energy efficiency. (Public Resources Code §§§25007, 25008, 25400)
- Declares that is the policy of California to aid in the interests of women, minority, disabled veteran, and lesbian, gay, bisexual, and transgender (LGBT) business enterprises, encourages greater economic opportunity for these groups and promotes competition among utilities to procure contracts with diverse businesses. (Public Utilities Code §8281)
- Authorizes the CEC to Carry out, or cause to be carried out, under contract or other arrangements, research and development into alternative sources of energy, improvements in energy generation, transmission, and siting, fuel substitution, and other topics related to energy supply, demand, public safety, ecology, and conservation which are of particular statewide importance. (Public Resources Code §25216 (c))
- Requires the CEC to continuously carry out studies, research projects, data collection, and other activities required to assess the nature, extent, and distribution of energy resources to meet the needs of the state, including but not limited to, fossil fuels and solar, nuclear, and geothermal energy resources. It shall also carry out studies, technical assessments, research projects, and data collection directed to reducing wasteful, inefficient, unnecessary, or uneconomic uses of energy. (Public Resources Code §25401)
This bill:
- Requires the CEC to allocate at least 25 percent of the moneys in the fund for technology demonstration and deployment at sites located in and benefitting disadvantaged communities.
- Requires the CEC to expend, an additional, at least 10 percent of the moneys appropriated from the fund for technology demonstration and deployment at sites located in, and benefitting, low-income communities in the state.
- Requires the CEC to, if applicable, give the fullest possible consideration to an applicant’s analysis identifying potential adverse localized health impacts.
- Defines disadvantaged communities to mean communities identified pursuant to Section 39711 of the Health and Safety Code.
- Defines low-income communities to mean communities within census tracts with median household incomes at or below either of the following levels:
- Eighty percent of the statewide median income.
- The applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development and filed with the Office of Administrative Law pursuant to subdivision (c) of Section 50093 of the Health and Safety Code.
Background
Electric Program Investment Charge (EPIC). The California Public Utilities Commission (CPUC) established the purpose and governance for EPIC in Decision 12-05-037 on May 24, 2012. In the decision, the CPUC designated four administrators for the program – the CEC to oversee 80 percent of the funds and the remaining 20 percent to be administrated by the three investor owned electric utilities (IOUs). The CEC’s portion of the funds provides funding for applied research and development, technology and demonstration and deployment, and market facilitation for clean energy technologies and approaches for the benefits of the ratepayers of the three IOUs. Projects funded must address strategic objectives and funding initiatives as detailed in the appropriate EPIC Investment Plan.
CEC Resolution. On April 8, 2015, the CEC adopted a resolution to implement a policy to reflect the CEC’s commitment to diversity outreach for all its programs, including grants, loans and procurement opportunities. The resolution notes the unique ability of the CEC to promote diversity by providing opportunities for increased participation in CEC programs of small businesses and women, disabled veteran, minority, and lesbian, gay, bisexual, and transgender owned businesses. AB 865 (Alejo, Chapter 583, Statutes of 2015) further bolsters the CEC’s efforts by providing more specificity regarding how the CEC will achieve and measure its commitment to support increased diversity in granting programs and other efforts.
SB 350 Barriers Study. In response to the requirements in SB 350 (De León, Chapter 547, Statutes of 2015) the CEC released a report regarding the barriers faced by disadvantaged and low-income communities to fully participate in the state’s clean energy programs, including EPIC. The report included many recommendations, including a recommendation that the CEC and CPUC should direct research, development, demonstration, and market facilitation programs to include targeted benefits for low-income customers and disadvantaged communities. Specifically, the study noted the CEC’s EPIC program should “target a minimum of 25 percent of technology demonstration and deployment funding for sites located in disadvantaged communities.” This bill attempts to implement this recommendation and go further in requiring an additional 10 percent investment in and to benefit low-income residents. These are both laudable goals to ensure widespread deployment of clean technologies, and as the author and sponsors note these are opportunities to provide polluted communities clean, green solutions.
Definitions. This bill’s definitions for disadvantaged and low-income communities are consistent with those used in both SB 535 (De León, Chapter 830, Statutes of 2012) and AB 1550 (Gomez, Chapter 369, Statutes of 2016).
Ratepayer Effects. The proposal does not affect the overall amount already authorized from ratepayers for the CEC’s EPIC portion – namely $125 million per year. However, the bill proposal raises the questions as to whether these requirements would further support the goals of the EPIC funding and the state’s clean energy goals.
Technical Amendment. The author and committee may wish to amend this bill to clarify that the CEC may consider potential health impacts of EPIC projects as it reviews applications.
Prior/Related Legislation
SB 350 (De León, Chapter 547, Statutes of 2015) among other provisions, required the CEC to study barriers for low-income customers to access solar photovoltaic, other renewable energy, energy efficiency, and weatherization investments.
AB 865 (Alejo, Chapter 583, Statutes of 2015) required the CEC to develop an outreach program to inform women, minorities, disabled veterans, and gay, lesbian, bisexual, and transgender individuals of CEC funding programs and procurement opportunities.
AB 340 (Bradford, 2013) would have required the Public Utilities Commission (PUC) to establish a program to encourage the use of women, minority, and disabled veteran business enterprises (WMDVBEs) as prime contractors and subcontractors for all grants, contracts, subsidies, financing, and activities administered through the Electric Program Investment Charge (EPIC). The bill was vetoed by the Governor.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
California Environmental Justice Alliance (Source)
Women’s Foundation of California (Source)
Environmental Defense Fund
Silicon Valley Leadership Group
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the author:
Renewable energy spending, research and programs are not reaching low income and disadvantaged communities who are the most impacted by fossil fuel energy production. It is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. AB 523 helps achieve these goals by better targeting funding in and to the benefit of communities that need it the most.
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ASSEMBLY THIRD READING
ATR Bill Id:AB 523
Author:(Reyes)
As Amended Ver:May 18, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Utilities | 9-3 | Holden, Burke, Eggman, Cristina Garcia, Eduardo Garcia, Muratsuchi, Quirk, Reyes, Santiago | Patterson, Chen, Fong |
Appropriations | 12-4 | Gonzalez Fletcher, Bloom, Bocanegra, Bonta, McCarty, Chau, Eggman, Friedman, Eduardo Garcia, Gray, Muratsuchi, Reyes | Bigelow, Brough, Fong, Obernolte |
SUMMARY: Requires the California Energy Commission (CEC) to allocate the Electric Program Investment Charge (EPIC) monies for projects in disadvantaged and low income communities. Specifically, this bill:
- Mandates the CEC spend 35% of its technology demonstration and deployment (TDD) funds at sites located in and benefiting disadvantaged (25%) and low-income (10%) communities, as defined.
- Specifies TDD monies allocated to low-income communities cannot count toward monies allocated to disadvantaged communities.
FISCAL EFFECT: According to the Assembly Appropriations Committee, additional costs are minor or absorbable within existing resources.
COMMENTS:
- Purpose. According to the author, it is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. This bill helps achieve these goals by better targeting funding to the benefit of communities that need it the most.
- Background. In December 2011, the California Public Utilities Commission (CPUC) established the EPIC fund and designated the CEC and California's three major investor-owned utilities (IOUs) as administrators of the program. The purpose of the program is to invest in research projects that create and advance new energy solutions, foster regional innovation, and bring ideas from the lab to the marketplace. The CEC administers about $130 million per year of EPIC funds, approximately 80% of the total program budget. The CEC has three silos to which it allocates EPIC funds: a) applied research and development, b) TDD, and c) market facilitation. The IOUs only fund TDD projects.
Among other provisions, SB 350 (De León), Chapter 547, Statutes of 2015, required the CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. The Barriers Study directly addressed the use of EPIC monies, recommending a minimum of 25% of TDD sites be located in disadvantaged communities.
- Changes to EPIC Underway. The CEC, in its 2016 Annual Report, adopted the allocation for disadvantaged communities put forward in this bill, and noted that 35.7% of TDD funding awarded in 2016 went to projects that included at least one site in a disadvantaged community. The CEC is also currently holding public workshops to discuss opportunities for disadvantaged and low-income communities to receive these funds.
Analysis Prepared by: Laura McWilliams / U. & E. / (916) 319-2083 FN: 0000453
ASSEMBLY THIRD READING
ATR Bill Id:AB 523
Author:(Reyes)
As Amended Ver:April 4, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Utilities | 9-3 | Holden, Burke, Eggman, Cristina Garcia, Eduardo Garcia, Muratsuchi, Quirk, Reyes, Santiago | Patterson, Chen, Fong |
Appropriations | 12-4 | Gonzalez Fletcher, Bloom, Bocanegra, Bonta, McCarty, Chau, Eggman, Friedman, Eduardo Garcia, Gray, Muratsuchi, Reyes | Bigelow, Brough, Fong, Obernolte |
SUMMARY: Requires the California Energy Commission (CEC) to allocate the Electric Program Investment Charge (EPIC) monies for projects in disadvantaged and low income communities. Specifically, this bill:
Mandates the CEC spend 35% of its technology demonstration and deployment (TDD) funds at sites located in disadvantaged (25%) and low-income (10%) communities, as defined.
FISCAL EFFECT: According to the Assembly Appropriations Committee, additional costs are minor or absorbable within existing resources.
COMMENTS:
- Purpose. According to the author, it is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. This bill helps achieve these goals by better targeting funding to the benefit of communities that need it the most.
- Background. In December 2011, the California Public Utilities Commission established the EPIC fund and designated the CEC and California's three major Investor-owned utilities (IOUs) as administrators of the program. The purpose of the program is to invest in research projects that create and advance new energy solutions, foster regional innovation, and bring ideas from the lab to the marketplace. The CEC administers about $130 million per year of EPIC funds, approximately 80% of the total program budget. The CEC has three silos to which it allocates EPIC funds: 1) applied research and development, 2) TDD, and 3) market facilitation. The IOUs only fund TDD projects.
Among other provisions, SB 350 (De León), Chapter 547, Statutes of 2015, required the CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. The Barriers Study directly addressed the use of EPIC monies, recommending a minimum of 25% of TDD sites be located in disadvantaged communities.
- Changes to EPIC Underway. The CEC, in its 2016 Annual Report, adopted the allocation for disadvantaged communities put forward in this bill, and noted that 35.7% of TDD funding awarded in 2016 went to projects that included at least one site in a disadvantaged community. The CEC is also currently holding public workshops to discuss opportunities for disadvantaged and low-income communities to receive these funds.
Analysis Prepared by: Laura McWilliams / U. & E. / (916) 319-2083 FN: 0000197
Date of Hearing: April 26, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 523
Author:(Reyes) – As Amended Ver:April 4, 2017
Policy Committee: | Utilities and Energy | Vote: | 9 - 3 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the California Energy Commission (CEC) to give preference to clean energy projects that benefit residents of low-income or disadvantaged communities when expending Electric Program Investment Charge (EPIC) funds. Specifically, this bill:
- Requires the CEC to expend at least 25% of the appropriated EPIC funds for technology demonstration and deployment (TDD) at sites located in, or benefiting disadvantaged communities, as defined.
- Requires CEC expend to at least 10% of the appropriated EPIC funds for TDD funds at sites located in or benefiting low-income communities, as defined.
FISCAL EFFECT:
Minor, absorbable costs.
COMMENTS:
- Purpose. According to the author, it is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. This bill helps achieve these goals by better targeting funding to the benefit of communities that need it the most.
- Background. In December 2011, the Public Utilities Commission (PUC) established the EPIC fund and designated the CEC and California’s three major investor-owned utilities (IOUs) as administrators of the program. The purpose of the program is to invest in research projects to create and advance new energy solutions, foster regional innovation, and bring ideas from the lab to the marketplace. The CEC administers about $130 million per year of EPIC funds, approximately 80% of the total program budget. The CEC has three silos to which it allocates EPIC funds: 1) applied research and development; 2) TDD; and market facilitation. The IOUs only fund TDD projects.
Among other provisions, SB 350 (De León), Chapter 547, Statutes of 215, required CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. The Barriers Study directly addressed the use of EPIC monies, recommending a minimum of 25% of TDD sites be located in disadvantaged communities.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: March 29, 2017
ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY
Chris Holden, Chair
ABPCA Bill Id:AB 523 (
Author:Reyes) – As Introduced Ver:February 13, 2017
SUBJECT: Electric Program Investment Charge: allocation
SUMMARY: Requires the California Energy Commission (CEC) to allocate the Electric Program Investment Charge (EPIC) monies for technology demonstration and deployment (TDD) for sites in disadvantaged and low income communities. Specifically, this bill:
- Mandates the CEC spend 35% of its TDD funds at sites located in disadvantaged (25%) and low-income (10%) communities.
- Defines “low-income communities” as those in areas with median household incomes at or below 80% of the statewide median income or at the low-income threshold listed in the State Income Limits of the Dept. of Housing and Community Development.
- Defines “disadvantaged communities” as previously defined in statute. (Health & Safety Code §39711)
EXISTING LAW:
- Establishes the EPIC fund, and mandates the California Public Utilities Commission (CPUC) to set the rates that the IOUs collect and transfer to the CEC to administer the eligible EPIC programs. (Public Resources Code §25710-25712)
- Defines “disadvantaged communities” as those environmentally or socioeconomically burdened. (Health & Safety Code §39711)
- Allocates penalties for non-compliance with the Renewables Portfolio Standard (RPS) to be deposited in EPIC (Public Utilities Code §399.15)
- Mandates the CEC to study and report to the Legislature the barriers that low-income communities face for accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options. (Public Resources Code §25327)
FISCAL EFFECT: This bill is keyed fiscal and will be referred to the Appropriations Committee for its review of the fiscal effect of this bill.
BACKGROUND:
In December 2011, the CPUC established the EPIC fund and designated the CEC and California’s three major IOUs[1] as administrators of the program.[2] The purpose of the program is to invest in research projects that “create and advance new energy solutions, foster regional innovation, and bring ideas from the lab to the marketplace.”[3] The CEC administers about $130 million per year[4] of EPIC funds, approximately 80% of the total program budget. The CEC has three silos to which it allocates EPIC funds: applied research and development, technology demonstration and deployment (TDD), and market facilitation. The IOUs only fund TDD projects.
The TDD silo, specifically, was defined as “…the installation and operation of pre-commercial technologies at a scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments, to enable the financial community to effectively appraise the operational and performance characteristics of a given technology and the financial risks it presents.”[5] Examples of these TDD projects include energy-efficient attic programs, dairy biogas-to-electricity generators, and wastewater filtration system installations. The guiding principles of EPIC projects are to promote greater reliability, lower costs, and increase safety, while advancing technologies critical to achieving the state’s environmental and energy goals.
COMMENTS:
- Author’s Statement. According to the author’s office, “Renewable energy spending, research and programs are not reaching low income and disadvantaged communities who are the most impacted by fossil fuel energy production. It is critical that as the green economy develops we prioritize the inclusion of communities who not only have been overburdened by pollution but also have the most to gain from the economic impacts of the renewable industry. AB 523 helps achieve these goals by better targeting funding in and to the benefit of communities that need it the most.”
- CEC Low-Income Barriers Study. Among its many initiatives, SB 350 (De León, 2015) mandated the CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. Some of the CEC’s recommendations originated from assessments and analysis of current best-practices, but other recommendations originated from stakeholder suggestion and, per the CEC’s statement, “may warrant further analysis and stakeholder discussion as policymakers consider them for implementation.”[6] The penultimate recommendation from the Barriers Study directly addressed the use of EPIC monies, recommending “a minimum of 25%” of TDD sites be located in disadvantaged communities.
- Changes to EPIC. AB 523 modifies the current EPIC program by mandating that funding for TDD projects be reallocated for disadvantaged and low-income communities. Specifically, for the CEC’s TDD monies, at least 25%[7] will be used for projects located in disadvantaged communities and at least 10%[8] will be used for projects located in or benefiting low-income communities. In 2015, of the approximately 194 projects funded by the CEC’s EPIC monies, 19 were located in disadvantaged communities.[9] Of the TDD projects specifically, approximately 17% were located in disadvantaged communities. In response, the bill author notes that disadvantaged communities make up “25% of the state, demonstrating a need for more clear, targeted investment.”
Yet in its 2016 Annual Report[10], the CEC adopted its Barriers Study recommendation for EPIC monies, namely that it will “ensure that at least 25% of TDD funding is allocated to projects in disadvantaged communities.” The CEC went further to show that in 2016 approximately “35.7% of the funding awarded to TDD projects went to projects that included at least one site in a disadvantaged community.” Moreover, the CEC is currently holding public workshops to discuss opportunities for disadvantaged and low-income communities to receive these funds.[11]
4) Is Location Enough? The CEC’s recommendation for awarding TDD funds in disadvantaged communities specifies location as the primary metric. In other words, if a project is located within the geographical area of a disadvantaged community it is viewed as providing a benefit to that community. This is a broad metric, and could include project headquarters located in these communities. As a result, this location restriction could have the unintended consequence of limiting the bill’s impact. Rather, as this bill already mandates for low-income communities, the community benefit of a TDD project could be considered in the overall project planning. The Committee may wish to consider amending the bill to requiring that TDD projects be located in, or benefit, disadvantaged communities.
REGISTERED SUPPORT / OPPOSITION:
Support
The Women's Foundation of California (Sponsor)
Asian Pacific Environmental Network
Center For Biological Diversity
Center On Race, Poverty, And The Environment
Central California Asthma Collaborative
Climate Workers
Comite Progreso De Lamont
Committee For A Better Arwin
Committee For A Better Shafter
Communities For A Better Environment
Courage Campaign
Cultiva La Salud
Dolores Huerta Foundation
Earthworks
Environmental Defense Fund
Greenfield Walking Group
Lideres Campesinas
Medical Advocates For Healthy Air
Movement Generation
Physicians For Social Responsibility, Los Angeles
Poder
Sierra Club California
Opposition
None on file.
Analysis Prepared by: Laura McWilliams / U. & E. /
Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) ↑
CPUC D. 12-05-037 ↑
Electric Program Investment Charge 2016 Annual Report, CEC Staff Report; CEC-50-2017-015; February 2017; http://www.energy.ca.gov/2017publications/CEC-500-2017-015/CEC-500-2017-015.pdf ↑
Commission Final Report, Low-Income Barriers Study, Part A; CEC; CEC-300-2016-009-CMF; December 2016. ↑
CPUC D. 12-05-037 ↑
Commission Final Report, Low-Income Barriers Study, Part A; CEC; CEC-300-2016-009-CMF; December 2016. ↑
Approximating $12-13 million annually ↑
Approximating $5 million annually ↑
As designated in the CalEPA’s CalEnviroScreen; https://tinyurl.com/ljw2rll ↑
Electric Program Investment Charge 2016 Annual Report, CEC Staff Report; CEC-50-2017-015; February 2017; http://www.energy.ca.gov/2017publications/CEC-500-2017-015/CEC-500-2017-015.pdf ↑
CEC Media Advisory; March 16, 2017; https://tinyurl.com/l8yysb9 ↑
Discussed in Hearing
4MIN
Assembly Floor
17MIN
Assembly Floor
2MIN
Senate Floor
1H
Senate Standing Committee on Appropriations
12MIN
Senate Standing Committee on Energy, Utilities and Communications
3MIN
Assembly Floor
1MIN
Assembly Floor
2MIN
Assembly Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):
