Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to pass a bill that establishes new energy relief and environmental programs.

Highlights:

• Establishes the 2022 California Arrearage Payment Program (CAPP) in the Department of Community Services and Development (Sec. 1, Pg. 5).

• Requires that all active residential utility customers with past due bills incurred during the COVID-19 pandemic be included and considered eligible for 2022 CAPP assistance and funding (Sec. 1, Pg. 6).

• Requires the 2022 CAPP assistance to be prioritized for applicants for whom utility service may be disconnected as a result of their overdue balance incurred during the pandemic (Sec. 1, Pg. 6).

• Appropriates $1,197,000,000 from the Budget Act of 2022 for use in funding the 2022 CAPP assistance (Sec. 1, Pg. 6).

• Requires the Department to establish a formula for determining allocation of 2022 CAPP funds to applicants based upon proportional statewide energy utility arrearages (Sec. 1, Pg. 7).

• Requires electrical companies and utility applicants to issue 2022 CAPP benefits in the form of bill credits to residential customers for past due bills in proportion of their shares of customer arrearages (Sec. 1, Pg. 7).

• Requires the payments and benefits received from 2022 CAPP assistance to be treated in the same way as federal income refunds, and prohibits the benefits from being treated as income (Secs. 1 & 12, Pgs. 8 & 28).

• Requires the Public Utilities Commission to implement and administer a program to incentivize the construction of new multifamily and single-family residential buildings that are either all electric, have an energy storage system, or both, known as the building Initiative for Low-Emissions Development Program Phase 2 (Sec. 3, Pg. 9).

• Authorizes eligible facilities and powerplants to apply to the Commission no later than June 30, 2029, to be certified as a non fossil-fueled power plant, energy storage facility, or related facility (Sec. 4, Pg. 10).

• Prohibits the Commission from certifying any site or related facility unless the construction and operation of the site has an overall net positive economic benefit to the associated permitting local government (Sec. 4, Pg. 15).

• Prohibits the Commission from certifying a site that does not have an agreement or contract with 1 or more community based organizations, like a workforce organization (Sec. 4, pg. 15).

• Requires the Commission to consult with the Department of Fish and Wildlife with regards to any Commission findings or actions that authorize the handling of endangered, threatened, or candidate species, or with regards to any project impacts on fish, wildlife, and plant resources and habitats upon which those species depend (Sec. 4, Pg. 13).

• Requires the Commission to consult with the State Water Resources Control Board and regional water quality control boards with regards to waste discharge (Sec. 4, Pg. 13).

• Requires the Commission to consult with the Department of Toxic Substances Control with respect to related laws on toxic substance control (Sec. 4, Pg. 13).

• Specifies that the above mentioned consulted departments and boards have final say in all relevant matters (Sec. 4, Pg. 13).

• Requires the Commission to take feasible measures to avoid and mitigate impact to California native tribal resources, in consultation with tribal historic preservation officers (Sec. 4, pg. 14).

• Requires the Commission to establish and implement the Long-Duration Energy Storage Program to incentivize more efficient and environmental energy storage systems in the grid (Sec. 5, pg. 16).

• Establishes the Distributed Electricity Backup Assets Program to incentivize the construction of cleaner and more efficient distributed energy assets (Sec. 6, Pg. 19).

• Requires the Commission to transfer funds from the Distributed Energy Backup Assets Account for use in the Climate Heat Impact Repose Program (Sec. 6, Pg. 19).

• Establishes the Demand Side Grid Support Program to incentivize dispatchable customer load reduction and backup generation operation (Sec. 6, Pg. 19).

• Establishes the Strategic Reliability Reserve Fund in the State Treasury to support the transition to clean energy and ensure electrical grid reliability (Sec. 6, Pg. 20).

• Establishes the Energy Facility License and Compliance Fund in the State Treasury to maintain all fees paid to the Commission (Sec. 7, Pg. 24).

• Requires the Commission to continue a program of assistance to low-income electric and gas customers whose annual household income does not exceed 200% of the federal poverty level guidelines (Sec. 9, Pg. 25).

• Requires any increase to electrical rates and charges, including reductions in California Alternate Rates for Energy (CARE) discounts, to be reasonable and phased-in (Sec. 10, Pg. 27).

• Establishes the Department of Water Resources Electricity Supply Reliability Reserve Fund in the State Treasury (Sec. 13, Pg. 31).

• Appropriates $200,000,000 from the General Fund to the State Energy Resources Conservation and Development Commission for the 2021-2022 fiscal year to be used for incentives for demand side grid support (Sec. 18, Pg. 32).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes new energy relief and environmental programs.

Highlights:

• Establishes the 2022 California Arrearage Payment Program (CAPP) in the Department of Community Services and Development (Sec. 1, Pg. 5).

• Requires that all active residential utility customers with past due bills incurred during the COVID-19 pandemic be included and considered eligible for 2022 CAPP assistance and funding (Sec. 1, Pg. 6).

• Requires the 2022 CAPP assistance to be prioritized for applicants for whom utility service may be disconnected as a result of their overdue balance incurred during the pandemic (Sec. 1, Pg. 6).

• Appropriates $1,197,000,000 from the Budget Act of 2022 for use in funding the 2022 CAPP assistance (Sec. 1, Pg. 6).

• Requires the Department to establish a formula for determining allocation of 2022 CAPP funds to applicants based upon proportional statewide energy utility arrearages (Sec. 1, Pg. 7).

• Requires electrical companies and utility applicants to issue 2022 CAPP benefits in the form of bill credits to residential customers for past due bills in proportion of their shares of customer arrearages (Sec. 1, Pg. 7).

• Requires the payments and benefits received from 2022 CAPP assistance to be treated in the same way as federal income refunds, and prohibits the benefits from being treated as income (Secs. 1 & 12, Pgs. 8 & 28).

• Requires the Public Utilities Commission to implement and administer a program to incentivize the construction of new multifamily and single-family residential buildings that are either all electric, have an energy storage system, or both, known as the building Initiative for Low-Emissions Development Program Phase 2 (Sec. 3, Pg. 9).

• Authorizes eligible facilities and powerplants to apply to the Commission no later than June 30, 2029, to be certified as a non fossil-fueled power plant, energy storage facility, or related facility (Sec. 4, Pg. 10).

• Prohibits the Commission from certifying any site or related facility unless the construction and operation of the site has an overall net positive economic benefit to the associated permitting local government (Sec. 4, Pg. 15).

• Prohibits the Commission from certifying a site that does not have an agreement or contract with 1 or more community based organizations, like a workforce organization (Sec. 4, pg. 15).

• Requires the Commission to consult with the Department of Fish and Wildlife with regards to any Commission findings or actions that authorize the handling of endangered, threatened, or candidate species, or with regards to any project impacts on fish, wildlife, and plant resources and habitats upon which those species depend (Sec. 4, Pg. 13).

• Requires the Commission to consult with the State Water Resources Control Board and regional water quality control boards with regards to waste discharge (Sec. 4, Pg. 13).

• Requires the Commission to consult with the Department of Toxic Substances Control with respect to related laws on toxic substance control (Sec. 4, Pg. 13).

• Specifies that the above mentioned consulted departments and boards have final say in all relevant matters (Sec. 4, Pg. 13).

• Requires the Commission to take feasible measures to avoid and mitigate impact to California native tribal resources, in consultation with tribal historic preservation officers (Sec. 4, pg. 14).

• Requires the Commission to establish and implement the Long-Duration Energy Storage Program to incentivize more efficient and environmental energy storage systems in the grid (Sec. 5, pg. 16).

• Establishes the Distributed Electricity Backup Assets Program to incentivize the construction of cleaner and more efficient distributed energy assets (Sec. 6, Pg. 19).

• Requires the Commission to transfer funds from the Distributed Energy Backup Assets Account for use in the Climate Heat Impact Repose Program (Sec. 6, Pg. 19).

• Establishes the Demand Side Grid Support Program to incentivize dispatchable customer load reduction and backup generation operation (Sec. 6, Pg. 19).

• Establishes the Strategic Reliability Reserve Fund in the State Treasury to support the transition to clean energy and ensure electrical grid reliability (Sec. 6, Pg. 20).

• Establishes the Energy Facility License and Compliance Fund in the State Treasury to maintain all fees paid to the Commission (Sec. 7, Pg. 24).

• Requires the Commission to continue a program of assistance to low-income electric and gas customers whose annual household income does not exceed 200% of the federal poverty level guidelines (Sec. 9, Pg. 25).

• Requires any increase to electrical rates and charges, including reductions in California Alternate Rates for Energy (CARE) discounts, to be reasonable and phased-in (Sec. 10, Pg. 27).

• Establishes the Department of Water Resources Electricity Supply Reliability Reserve Fund in the State Treasury (Sec. 13, Pg. 31).

• Appropriates $200,000,000 from the General Fund to the State Energy Resources Conservation and Development Commission for the 2021-2022 fiscal year to be used for incentives for demand side grid support (Sec. 18, Pg. 32).

Full Bill Text