2009 California Public Utilities Code - Section 388-389 :: Article 9. State Agencies

388.  (a) Notwithstanding any other provision of law, any state
agency may enter into an energy savings contract with a qualified
energy service company for the purchase or exchange of thermal or
electrical energy or water, or to acquire energy efficiency and/or
water conservation services, for a term not exceeding 35 years, at
those rates and upon those terms that are approved by the agency.
   (b) The Department of General Services or any other state or local
agency intending to enter into an energy savings contract may
establish a pool of qualified energy service companies based on
qualifications, experience, pricing or other pertinent factors.
Energy service contracts for individual projects undertaken by any
state or local agency may be awarded through a competitive selection
process to individuals or firms identified in such a pool. The pool
of qualified energy service companies and contractors shall be
reestablished at least every two years or shall expire.
   (c) For purposes of this section, the following definitions apply:
   (1) "Energy savings" means a measured and verified reduction in
fuel, energy or water consumption when compared to an established
baseline of consumption.
   (2) "Qualified energy service company" means a company with a
demonstrated ability to provide or arrange for building or facility
energy auditors, selection and design of appropriate energy savings
measures, project financing, implementation of these measures, and
maintenance and ongoing measurement of these measures as to ensure
and verify energy savings.

389.  (a) The Secretary of the California Environmental Protection
Agency, in consultation with interested stakeholders including
relevant state and federal agencies, boards, and commissions, shall
evaluate and recommend to the Legislature public policy strategies
that address the feasibility of shifting costs from electric utility
ratepayers, in whole or in part, to other classes of beneficiaries.
This evaluation also shall address the quantification of benefits
attributable to the solid-fuel biomass industry and implementation
requirements, including statutory amendments and transition period
issues that may be relevant, to bring about equitable and effective
allocation of solid-fuel biomass electricity costs that ensure the
retention of the economic and environmental benefits of the biomass
industry while promoting measurable reduction in real costs to
ratepayers. This evaluation shall be in coordination with the
California Energy Resources Conservation and Development Commission's
efforts pursuant to subdivision (b) of Section 383, addressing
renewable policy implementation issues. The Secretary of the
California Environmental Protection Agency shall submit a final
report to the Legislature, using existing agency resources, prior to
March 31, 1997.
   (b) The Secretary of the California Environmental Protection
Agency, in consultation with relevant state and federal agencies,
boards, and commissions, and with representatives of the solid-fuel
biomass industry, shall prepare and submit to the Legislature an
annual report on the existence, status, and progress of any public
policy measures for cost-shifting developed as a result of the
recommendations made pursuant to subdivision (a), on or before March
31 of each year from 1999 to 2001, inclusive. A report prepared
pursuant to this subdivision shall not exceed 10 pages.