California Public Utilities Code Sections 381-384.1

Article 7. Research, Environmental, and Low-Income Funds

CA Codes (puc:381-384.1) PUBLIC UTILITIES CODE
SECTION 381-384.1




381.  (a) To ensure that the funding for the programs described in
subdivision (b) and Section 382 are not commingled with other
revenues, the commission shall require each electrical corporation to
identify a separate rate component to collect the revenues used to
fund these programs.  The rate component shall be a nonbypassable
element of the local distribution service and collected on the basis
of usage.  This rate component shall fall within the rate levels
identified in subdivision (a) of Section 368.
   (b) The commission shall allocate funds collected pursuant to
subdivision (a), and any interest earned on collected funds, to
programs that enhance system reliability and provide in-state
benefits as follows:
   (1) Cost-effective energy efficiency and conservation activities.

   (2) Public interest research and development not adequately
provided by competitive and regulated markets.
   (3) In-state operation and development of existing and new and
emerging renewable resource technologies defined as electricity
produced from other than a conventional power source within the
meaning of Section 2805, provided that a power source utilizing more
than 25 percent fossil fuel may not be included.
   (c) The Public Utilities Commission shall order the respective
electrical corporations to collect and spend these funds, as follows:

   (1) Cost-effective energy efficiency and conservation activities
shall be funded at not less than the following levels commencing
January 1, 1998, through December 31, 2001:  for San Diego Gas and
Electric Company a level of thirty-two million dollars ($32,000,000)
per year; for Southern California Edison Company a level of ninety
million dollars ($90,000,000) for each of the years l998, 1999, and
2000; fifty million dollars ($50,000,000) for the year 2001; and for
Pacific Gas and Electric Company a level of one hundred six million
dollars ($106,000,000) per year.
   (2) Research, development, and demonstration programs to advance
science or technology that are not adequately provided by competitive
and regulated markets shall be funded pursuant to Section 399.8.
   (3) In-state operation and development of existing and new and
emerging renewable resource technologies shall be funded at not less
than the following levels on a statewide basis:  one hundred nine
million five hundred thousand dollars ($109,500,000) per year for
each of the years 1998, 1999, and 2000, and one hundred thirty-six
million five hundred thousand dollars ($136,500,000) for the year
2001.  To accomplish these funding levels over the period described
herein the San Diego Gas and Electric Company shall spend twelve
million dollars ($12,000,000) per year, the Southern California
Edison Company shall expend no less than forty-nine million five
hundred thousand dollars ($49,500,000) for the years 1998, 1999, and
2000, and no less than seventy-six million five hundred thousand
dollars ($76,500,000) for the year 2001, and the Pacific Gas and
Electric Company shall expend no less than forty-eight million
dollars ($48,000,000) per year through the year 2001.  Additional
funding not to exceed seventy-five million dollars ($75,000,000)
shall be allocated from moneys collected pursuant to subdivision (d)
in order to provide a level of funding totaling five hundred forty
million dollars ($540,000,000).
   (4) Up to fifty million dollars ($50,000,000) of the amount
collected pursuant to subdivision (d) may be used to resolve
outstanding issues related to implementation of subdivision (a) of
Section 374.  Moneys remaining after fully funding the provisions of
this paragraph shall be reallocated for purposes of paragraph (3).
   (5) Up to ninety million dollars ($90,000,000) of the amount
collected pursuant to subdivision (d) may be used to resolve
outstanding issues related to contractual arrangements in the
Southern California Edison service territory stemming from the
Biennial Resource Planning Update auction.  Moneys remaining after
fully funding the provisions of this paragraph shall be reallocated
for purposes of paragraph (3).
   (6) The funding of in-state operation and development of existing
and new and emerging renewable resources technologies shall be made
available pursuant to Section 399.8.
   (d) Notwithstanding any other provisions of this chapter, the
commission may allow entities subject to its jurisdiction to extend
the period for competition transition charge collection up to three
months beyond its otherwise applicable termination of December 31,
2001, so as to ensure that the aggregate portion of the research,
environmental, and low-income funds allocated to renewable resources
shall equal five hundred forty million dollars ($540,000,000) and
that the costs specified in paragraphs (3), (4), and (5) of
subdivision (c) are collected.
   (e) Each electrical corporation shall allow customers to make
voluntary contributions through their utility bill payments as either
a fixed amount or a variable amount to support programs established
pursuant to paragraph (3) of subdivision (b).  Funds collected by
electrical corporations for these purposes shall be forwarded in a
timely manner to the appropriate fund as specified by the commission.

   (f) For purposes of this article, "emerging renewable technology"
means a new renewable technology, including, but not limited to, fuel
cells using renewable fuels and photovoltaic technology, that is
determined by the State Energy Resources Conservation and Development
Commission to be emerging from research and development and that has
significant commercial potential.
   (g) The commission's authority to collect funds pursuant to this
section, for purposes of paragraph (3) of subdivision (b), shall
become inoperative on March 31, 2002.



381.1.  (a) No later than July 15, 2003, the commission shall
establish policies and procedures by which any party, including, but
not limited to, a local entity that establishes a community choice
aggregation program, may apply to become administrators for
cost-effective energy efficiency and conservation programs
established pursuant to Section 381.  In determining whether to
approve an application to become administrators, the commission shall
consider the value of program continuity and planning certainty and
the value of allowing competitive opportunities for potentially new
administrators.  The commission shall weigh the benefits of the party'
s proposed program to ensure that the program meets the following
objectives:
   (1) Is consistent with the goals of the existing programs
established pursuant to Section 381.
   (2) Advances the public interest in maximizing cost-effective
electricity savings and related benefits.
   (3) Accommodates the need for broader statewide or regional
programs.
   (b) All audit and reporting requirements established by the
commission pursuant to Section 381 and other statutes shall apply to
the parties chosen as administrators under this section.
   (c) If a community choice aggregator is not the administrator of
energy efficiency and conservation programs for which its customers
are eligible, the commission shall require the administrator of
cost-effective energy efficiency and conservation programs to direct
a proportional share of its approved energy efficiency program
activities for which the community choice aggregator's customers are
eligible, to the community choice aggregator's territory without
regard to customer class.  To the extent that energy efficiency and
conservation programs are targeted to specific locations to avoid or
defer transmission or distribution system upgrades, the targeted
expenditures shall continue irrespective of whether the loads in
those locations are served by an aggregator or by an electrical
corporation.  The commission shall also direct the administrator to
work with the community choice aggregator, to provide advance
information where appropriate about the likely impacts of energy
efficiency programs and to accommodate any unique community program
needs by placing more, or less, emphasis on particular approved
programs to the extent that these special shifts in emphasis in no
way diminish the effectiveness of broader statewide or regional
programs.  If the community choice aggregator proposes energy
efficiency programs other than programs already approved for
implementation in its territory, it shall do so under established
commission policies and procedures.  The commission may order an
adjustment to the share of energy efficiency program activities
directed to a community aggregator's territory if necessary to ensure
an equitable and cost-effective allocation of energy efficiency
program activities.


381.5.  It is the intent of the Legislature to protect and
strengthen the current network of community service providers by
doing the following:
   (a) Directing that any evaluation of the effectiveness of the
low-income energy efficiency programs shall be based not solely on
cost criteria, but also on the degree to which the provision of
services allows maximum program accessibility to quality programs to
low-income communities by entities that have demonstrated performance
in effectively delivering services to the communities.
   (b) Ensuring that high quality, low-income energy efficiency
programs are delivered to the maximum number of eligible participants
at a reasonable cost.


382.  (a) Programs provided to low-income electricity customers,
including, but not limited to, targeted energy-efficiency services
and the California Alternate Rates for Energy program shall be funded
at not less than 1996 authorized levels based on an assessment of
customer need.
   (b) In order to meet legitimate needs of electric and gas
customers who are unable to pay their electric and gas bills and who
satisfy eligibility criteria for assistance, recognizing that
electricity is a basic necessity, and that all residents of the state
should be able to afford essential electricity and gas supplies, the
commission shall ensure that low-income ratepayers are not
jeopardized or overburdened by monthly energy expenditures.  Energy
expenditure may be reduced through the establishment of different
rates for low-income ratepayers, different levels of rate assistance,
and energy efficiency programs.
   (c) Nothing in this section shall be construed to prohibit
electric and gas providers from offering any special rate or program
for low-income ratepayers that is not specifically required in this
section.
   (d) The commission shall allocate funds necessary to meet the
low-income objectives in this section.
   (e) Beginning in 2002, an assessment of the needs of low-income
electricity and gas ratepayers shall be conducted periodically by the
commission with the assistance of the Low-Income Oversight Board.
The assessment shall evaluate low-income program implementation and
the effectiveness of weatherization services and energy efficiency
measures in low-income households.  The assessment shall consider
whether existing programs adequately address low-income electricity
and gas customers' energy expenditures, hardship, language needs, and
economic burdens.



382.1.  (a) There is hereby established a Low-Income Oversight Board
that shall advise the commission on low-income electric, gas, and
water customer issues and shall serve as a liaison for the commission
to low-income ratepayers and representatives. The Low-Income
Oversight Board shall replace the Low-Income Advisory Board in
existence on January 1, 2000. The Low-Income Oversight Board shall do
all of the following to advise the commission regarding the
commission's duties:
   (1) Monitor and evaluate implementation of all programs provided
to low-income electricity, gas, and water customers.
   (2) Assist in the development and analysis of any assessments of
low-income customer need.
   (3) Encourage collaboration between state and utility programs for
low-income electricity and gas customers to maximize the leverage of
state and federal energy efficiency funds to both lower the bills
and increase the comfort of low-income customers.
   (4) Provide reports to the Legislature, as requested, summarizing
the assessment of need, audits, and analysis of program
implementation.
   (5) Assist in streamlining the application and enrollment process
of programs for low-income electricity and gas customers with general
low-income programs, including, but not limited to, the Universal
Lifeline Telephone Service (ULTS) program and, including compliance
with Section 739.1.
   (6) Encourage the usage of the network of community service
providers in accordance with Section 381.5.
   (b) The Low-Income Oversight Board shall be comprised of 11
members to be selected as follows:
   (1) Five members selected by the commission who have expertise in
the low-income community and who are not affiliated with any state
agency or utility group. These members shall be selected in a manner
to ensure an equitable geographic distribution.
   (2) One member selected by the Governor.
   (3) One member selected by the commission who is a commissioner or
commissioner designee.
   (4) One member selected by the Department of Community Services
and Development.
   (5) One member selected by the commission who is a representative
of private weatherization contractors.
   (6) One member selected by the commission who is a representative
of an electrical or gas corporation.
   (7) One member selected by the commission who is a representative
of a water corporation.
   (c) The Low-Income Oversight Board shall alternate meeting
locations between northern, central, and southern California.
   (d) The Low-Income Oversight Board may establish a technical
advisory committee consisting of low-income service providers,
utility representatives, consumer organizations, and commission
staff, to assist the board and may request utility representatives
and commission staff to assist the technical advisory committee.
   (e) The commission shall do all of the following in conjunction
with the board:
   (1) Work with the board, interested parties, and community-based
organizations to increase participation in programs for low-income
customers.
   (2) Provide technical support to the board.
   (3) Ensure that the energy burden of low-income electricity and
gas customers is reduced.
   (4) Provide formal notice of board meetings in the commission's
daily calendar.
   (f) (1) Members of the board and members of the technical advisory
committee shall be eligible for compensation in accordance with
state guidelines for necessary travel.
   (2) Members of the board and members of the technical advisory
committee who are not salaried state service employees shall be
eligible for reasonable compensation for attendance at board
meetings.
   (3) All reasonable costs incurred by the board in carrying out its
duties pursuant to subdivision (a), including staffing, travel, and
administrative costs, shall be reimbursed through the public
utilities reimbursement account and shall be part of the budget of
the commission and the commission shall consult with the board in the
preparation of that portion of the commission's annual proposed
budget.



383.  Moneys collected pursuant to paragraph (3) of subdivision (b)
of Section 381 shall be transferred to a subaccount of the Energy
Resources Programs Account of the California Energy Resources
Conservation and Development Commission to be held until further
action by the Legislature for purposes of:
   (a) Supporting the operation of existing and the development of
new and emerging in-state renewable resource technologies.
   (b) Supporting the operations of existing renewable resource
generation facilities which provide fire suppression benefits, reduce
materials going into landfills, and mitigate the amount of
open-field burning of agricultural waste.
   (c) Supporting the operations of existing, innovative solar
thermal technologies that provide essential peak generation and
related reliability benefits.



383.6.  The commission shall, by December 1, 2003, prepare and
submit to the Legislature, a comprehensive transmission plan for
renewable electricity generation facilities, to provide for the
rational, orderly, cost-effective expansion of transmission
facilities that may be necessary to facilitate the development of
renewable electricity generation facilities identified in the
renewable electricity generation resource plan prepared pursuant to
Section 25749 of the Public Resources Code.  The commission shall
consult with the State Energy Resources Conservation and Development
Commission, the Independent System Operator, and electrical
corporations in the development of and preparation of the plan.



384.  (a) Funds transferred to the State Energy Resources
Conservation and Development Commission pursuant to this article for
purposes of public interest research, development, and demonstration
shall be transferred to the Public Interest Research, Development,
and Demonstration Fund, which is hereby created in the State
Treasury. The fund is a trust fund and shall contain money from all
interest, repayments, disencumbrances, royalties, and any other
proceeds appropriated, transferred, or otherwise received for
purposes pertaining to public interest research, development, and
demonstration. Any appropriations that are made from the fund shall
have an encumbrance period of not longer than two years, and a
liquidation period of not longer than four years.
   (b) Funds deposited in the Public Interest Research, Development,
and Demonstration Fund may be expended for projects that serve the
energy needs of both stationary and transportation purposes if the
research provides an electricity ratepayer benefit.
   (c) The State Energy Resources Conservation and Development
Commission shall report annually to the appropriate budget committees
of the Legislature on any encumbrances or liquidations that are
outstanding at the time the commission's budget is submitted to the
Legislature for review.



384.1.  (a) For purposes of this section, "Energy Commission" means
the State Energy Resources Conservation and Development Commission.
   (b) On or before March 15, 2006, the Energy Commission shall
prepare and submit to the appropriate policy and fiscal committees of
the Legislature, a report setting forth a long-term research
priority, program management, and staffing plan for the Public
Interest Energy Research Program, that is part of the Public Interest
Research, Development, and Demonstration Program established
pursuant to Section 25620.1 of the Public Resources Code and funded
through the Public Interest Research, Development, and Demonstration
Fund. The report shall do all of the following:
   (1) Designate, in priority order, between 5 and 10 areas of
research.
   (2) Evaluate the current and projected funding and workload
through 2011.
   (3) Identify, based on the priorities established by the Energy
Commission, an effective and efficient program management structure,
staffing, and funding requirements to adequately manage the projected
workload.
   (4) Consider the appropriate mix of contract consultants and state
employees, considering required technical expertise and overall
costs.
   (c) The evaluation shall consider the manageability of an
increasing number of projects and whether the number of projects
should be limited, which areas of research have proven most
productive, and structural changes to provide a greater degree of
operational independence and research leadership to address the
long-term problems identified by the Independent Review Panel in its
March 2004 report.
   (d) The report required by this section may be included in the
five-year investment plan report required by subdivision (b) of
Section 399.7, if provided to the appropriate policy and fiscal
committees of the Legislature by March 15, 2006.