Section § 25450

Explanation

This law highlights California's response to rising energy costs and federal energy legislation. It points to past acts by Congress that offer grants to states for boosting energy efficiency and reducing fossil fuel use. California must use a significant portion of these funds to aid local governments ineligible for direct federal grants. The Legislature aims to implement these grant programs swiftly, focusing on energy improvements, water conservation, and fostering a green workforce.

The California commission is expected to efficiently manage these funds, striving to spend less on administration and more on effective energy projects. The goal is to leverage federal funds to maximize benefits for energy, water, and renewable energy initiatives.

(a)CA Public Resources Code § 25450(a) The Legislature finds and declares all of the following:
(1)CA Public Resources Code § 25450(a)(1) The cost of energy in California is increasing and creating greater demands on local governments’ operating budgets.
(2)CA Public Resources Code § 25450(a)(2) The 110th Congress enacted the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) that provides energy efficiency and conservation block grants to eligible entities, including states, to reduce fossil fuel emissions, improve energy efficiency, and reduce overall energy use.
(3)CA Public Resources Code § 25450(a)(3) Section 545(c)(1)(A) of the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17155(c)(1)(A)) mandates that states receiving block grants under the act use not less than 60 percent of the grant amount to provide subgrants to local governments that are not eligible entities for the purposes of the act.
(4)CA Public Resources Code § 25450(a)(4) The 111th Congress enacted the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) that appropriates funds for energy efficiency and conservation, water conservation, home weatherization, green workforce development, and renewable energy.
(b)CA Public Resources Code § 25450(b) It is the intent of the Legislature to fully implement the requirements for, and achieve the purposes of, the energy and conservation block grants provided pursuant to the Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), in the most expedient manner possible, and that the funds allocated to the state pursuant to those acts be administered by the commission. Moreover, to the extent possible without causing undue delay, the commission shall look to the Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009 programs and make policy decisions that leverage and maximize the use of these dollars, including, but not limited to, the areas of energy efficiency, renewable energy, water efficiency, weatherization, and green workforce development.
(c)CA Public Resources Code § 25450(c) It is the intent of the Legislature to strive to maximize the opportunity to allocate funds toward the most cost-effective energy efficiency projects, and when allocating funds toward administration, the commission should use the allowable administrative expenses specified in Section 545(c)(4) of the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17155(c)(4)) as a ceiling and improve efficiencies to allocate less than the allowable amount.

Section § 25450.1

Explanation

This law explains that a commission is responsible for managing federal funds California receives under two specific acts: the Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009. These funds are for the Energy Efficiency and Conservation Block Grant Program. The commission can use this money to quickly offer contracts, grants, and loans in line with these federal laws.

The commission shall administer the funds allocated to and received by the state pursuant to the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) and the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) for the Energy Efficiency and Conservation Block Grant Program established pursuant to Section 542 of the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17152), and may use the federal funds to award contracts, grants, and loans as expeditiously as possible consistent with those acts.

Section § 25450.2

Explanation

This law specifies how funds from a certain section should be used to promote energy efficiency and conservation. At least 60% of these funds must be used for grants aimed at energy efficiency, climate change planning, and conservation in smaller cities (under 35,000 people) and counties (under 200,000 people), with priority given to cost-effectiveness. However, this population restriction doesn't apply to funds from the 2009 federal stimulus package. The rest of the funds should support similar projects for eligible entities, aligned with federal energy laws and also prioritized by their cost-effectiveness.

(a)CA Public Resources Code § 25450.2(a) Not less than 60 percent of the funds received pursuant to Section 25450.1 shall be used to provide cost-effective energy efficiency, climate change planning, and conservation grants to cities with a population of less than 35,000 and counties with a population of less than 200,000, and be prioritized based on cost-effective energy efficiency. However, this population requirement does not apply to funds received pursuant to the American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
(b)CA Public Resources Code § 25450.2(b) The remaining funds received pursuant to Section 25450.1 shall be used to provide cost-effective energy efficiency and conservation contracts, grants, and loans to eligible entities consistent with the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.) and the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) that govern or fund the Energy Efficiency and Conservation Block Grant program and be prioritized based on cost-effective energy efficiency.

Section § 25450.3

Explanation

This law states that the commission must stay within a budget limit set by another federal law, specifically for administrative costs. These costs cover tasks like reporting, keeping records, and evaluating activities that are part of managing and funding energy programs. It also includes the overall administration costs, indirect costs, and overhead.

The commission shall not exceed the amount specified in Section 545(c)(4) of the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17155(c)(4)) for administrative expenses, which include, but are not limited to, reporting, recordkeeping, and evaluation activities required by the Energy Independence and Security Act of 2007 (42 U.S.C. Section 17001 et seq.), the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), and implementing regulations and guidelines, that govern or fund the Energy Efficiency and Conservation Block Grant Program, and the combined administration program costs, indirect costs, overhead, and costs associated with the Statewide Cost Allocation Plan.

Section § 25450.4

Explanation

This section explains that the commission has the authority to award contracts, grants, and loans according to the rules in this chapter. However, this authority is subject to restrictions from the Energy Independence and Security Act of 2007 and the American Recovery and Reinvestment Act of 2009, along with any related regulations and guidelines.

The commission may award contracts, grants, and loans pursuant to this chapter, unless otherwise prohibited by the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.), the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), implementing regulations and guidelines.

Section § 25450.5

Explanation

The commission can create guidelines on awarding and managing funds from the American Recovery and Reinvestment Act of 2009. When making these guidelines, they must have a public meeting and allow public comments, giving at least 30 days' notice for initial guidelines and 15 days for any major changes. These guidelines don't have to follow some other usual government administrative rules.

Additionally, if someone believes that grants or loans were decided based on factors not in the guidelines, they can appeal to the commission to review the decision.

(a)CA Public Resources Code § 25450.5(a) The commission may adopt guidelines governing the award, eligibility, and administration of funding pursuant to the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) at a publicly noticed meeting offering all interested parties an opportunity to comment. The commission shall provide written public notice of not less than 30 days for the initial adoption of guidelines. Substantive changes to the guidelines shall not be adopted without 15-day written notice to the public. Notwithstanding any other provision of law, any guidelines adopted pursuant to this chapter shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)CA Public Resources Code § 25450.5(b) Grants and loans made pursuant to this chapter are subject to appeal to the commission upon a showing that factors other than those described in the guidelines adopted by the commission were applied in making the awards and payments.