Public Interest Energy Research, Demonstration,and Development Program - - CA Public Resources

Section § 25620

This section highlights California's goals to improve its citizens' quality of life by ensuring energy services are environmentally friendly, safe, reliable, and affordable. It emphasizes the importance of the state engaging in research and development projects that the current energy market doesn't fully cover. These projects should push forward energy science and technology that benefits Californians and align with the state’s policies. Furthermore, the state commission should also help boost California's economy, particularly supporting local businesses.

The Legislature hereby finds and declares all of the following:

(a) It is in the best interests of the people of this state that the quality of life of its citizens be improved by providing environmentally sound, safe, reliable, and affordable energy services and products.

(b) To improve the quality of life of this state’s citizens, it is proper and appropriate for the state to undertake public interest energy research, development, and demonstration projects that are not adequately provided for by competitive and regulated energy markets.

(c) Public interest energy research, demonstration, and development projects should advance energy science or technologies of value to California citizens and should be consistent with the policies of this chapter.

(d) It is in the best interest of the people of California for the commission to positively contribute to the overall economic climate of the state within the roles and responsibilities of the commission as defined by statute, regulation, and other official government authority, including, but not limited to, providing economic benefits to California-based entities.

energy services quality of life environmentally sound energy safe energy reliable energy affordable energy public interest energy research energy development projects energy demonstration projects energy science advancement California economic benefits local business support energy market gaps state commission responsibilities economic climate contribution

(Amended by Stats. 2008, Ch. 537, Sec. 3. Effective January 1, 2009.)

Section § 25620.1

This law establishes the Public Interest Research, Development, and Demonstration Program, managed by the commission to promote energy technologies that enhance environmental benefits, system reliability, and reduce costs. The main goal is to introduce advanced technologies that aid electric utility customers.

The program focuses on several areas, such as cutting-edge transportation technologies to lower emissions, increasing energy efficiency, and developing innovative electricity generation that lowers greenhouse gas emissions. It also emphasizes using renewable energy and improving energy distribution and storage.

To achieve these objectives, the program adopts a portfolio approach that balances risks and benefits and seeks a broad spectrum of projects. It includes an open process for selecting projects and encourages diverse participation from both the public and private sectors.

Funding may be given through various financial arrangements, including contracts, grants, or loans, to support these research projects.

(a) The commission shall develop, implement, and administer the Public Interest Research, Development, and Demonstration Program that is hereby created. The program shall include a full range of research, development, and demonstration activities that, as determined by the commission, are not adequately provided for by competitive and regulated markets. The commission shall administer the program consistent with the policies of this chapter.

(b) The general goal of the program is to develop, and help bring to market, energy technologies that provide increased environmental benefits, greater system reliability, and lower system costs, and that provide tangible benefits to electric utility customers through the following investments:

(1) Advanced transportation technologies that reduce air pollution and greenhouse gas emissions beyond applicable standards, and that benefit electricity and natural gas ratepayers.

(2) Increased energy efficiency in buildings, appliances, lighting, and other applications beyond applicable standards, and that benefit electric utility customers.

(3) Advanced electricity generation technologies that exceed applicable standards to increase reductions in greenhouse gas emissions from electricity generation, and that benefit electric utility customers.

(4) Advanced electricity technologies that reduce or eliminate consumption of water or other finite resources, increase use of renewable energy resources, or improve transmission or distribution of electricity generated from renewable energy resources.

(c) To achieve the goals established in subdivision (b), the commission shall adopt a portfolio approach for the program that does all of the following:

(1) Effectively balances the risks, benefits, and time horizons for various activities and investments that will provide tangible energy or environmental benefits for California electricity customers.

(2) Emphasizes innovative energy supply and end use technologies, focusing on their reliability, affordability, and environmental attributes.

(3) Includes projects that have the potential to enhance transmission and distribution capabilities.

(4) Includes projects that have the potential to enhance the reliability, peaking power, and storage capabilities of renewable energy.

(5) Demonstrates a balance of benefits to all sectors that contribute to the funding under Section 399.8 of the Public Utilities Code.

(6) Addresses key technical and scientific barriers.

(7) Demonstrates a balance between short-term, mid-term, and long-term potential.

(8) Ensures that prior, current, and future research not be unnecessarily duplicated.

(9) Provides for the future market utilization of projects funded through the program.

(10) Ensures an open project selection process and encourages the awarding of research funding for a diverse type of research as well as a diverse award recipient base and equally considers research proposals from the public and private sectors.

(11) Coordinates with other related research programs.

(d) The term “award,” as used in this chapter, may include, but is not limited to, contracts, grants, interagency agreements, loans, and other financial agreements designed to fund public interest research, demonstration, and development projects or programs.

Public Interest Research Program energy technologies environmental benefits system reliability electric utility customers advanced transportation technologies reduce air pollution greenhouse gas emissions energy efficiency renewable energy resources transmission capabilities storage capabilities research funding project selection process portfolio approach

(Amended by Stats. 2006, Ch. 512, Sec. 2. Effective September 27, 2006.)

Section § 25620.11

This law requires that a commission regularly assemble an advisory board to give recommendations on which projects and programs should receive funding. The advisory board should include representatives from relevant organizations such as consumer and environmental groups, as well as electrical companies. Additionally, three members each from the Senate and the Assembly can join the advisory board's activities, as long as their participation aligns with their legislative roles.

(a) The commission shall regularly convene an advisory board that shall make recommendations to guide the commission’s selection of programs and projects to be funded under this chapter. The advisory board shall include as appropriate, but not be limited to, representatives from the Public Utilities Commission, consumer organizations, environmental organizations, and electrical corporations subject to the funding requirements of Section 381 of the Public Utilities Code.

(b) Three members of the Senate, appointed by the Senate President Pro Tempore, and three members of the Assembly, appointed by the Speaker of the Assembly, may meet with the advisory board and participate in its activities to the extent that such participation is not incompatible with their respective positions as Members of the Legislature.

advisory board funding recommendations Public Utilities Commission consumer organizations environmental organizations electrical corporations Senate members Assembly members legislative participation program selection project funding Section 381 Public Utilities Code

(Amended by Stats. 2006, Ch. 512, Sec. 7. Effective September 27, 2006.)

Section § 25620.15

This California law aims to ensure ongoing investments in energy-efficient technology research and development bring economic and environmental benefits. It sets a state policy for using funds to support advancements in science or technology not covered by markets. Money collected for energy research between 2007 and 2012 is to be transferred to a special fund for these purposes. Instead of the Public Utilities Commission keeping all the funds, up to 10% can be given to electric companies for projects related to energy transmission and distribution.

(a) In order to ensure that prudent investments in research, development, and demonstration of energy efficient technologies continue to produce substantial economic, environmental, public health, and reliability benefits, it is the policy of the state and the intent of the Legislature that funds made available, upon appropriation, for energy related public interest research, development, and demonstration programs shall be used to advance science or technology that is not adequately provided by competitive and regulated markets.

(b) Notwithstanding any other provision of law, money collected for public interest research, development, and demonstration pursuant to Section 399.8 of the Public Utilities Code shall be transferred to the Public Interest Research, Development, and Demonstration Fund. Money collected between January 1, 2007, and January 1, 2012, shall be used for the purposes specified in this chapter.

(c) In lieu of the Public Utilities Commission retaining funds authorized pursuant to Section 381 of the Public Utilities Code for investments made by electrical corporations in public interest research, development, and demonstration projects for transmission and distribution functions, up to 10 percent of the funds transferred to the commission pursuant to subdivision (b) shall be awarded to electrical corporations for public interest research, development, and demonstration projects for transmission and distribution functions consistent with the policies and subject to the requirements of this chapter.

energy efficiency research public interest research funds technology advancement Public Utilities Code Section 399.8 special fund transfer environmental benefits electric companies transmission projects distribution projects research funding economic benefits energy development sustainability initiatives fund appropriation market coverage

(Added by Stats. 2006, Ch. 512, Sec. 8. Effective September 27, 2006.)

Section § 25620.2

This law explains how the commission should manage the Public Interest Research, Development, and Demonstration Program. They need to create procedures for applying for project funding and choose projects based on merit. Additionally, the commission must establish regulations to run the program by drafting preliminary texts, notifying the public, and allowing comments. There is a 30-day period for written comments, which must be read and recorded for transparency. If needed, public hearings can be requested and conducted. The adopted regulations should be made accessible to the public, including an online version, and sent to the Office of Administrative Law. The detailed process outlined is temporary until January 1, 2012, or longer if amended.

(a) To ensure the efficient implementation and administration of the Public Interest Research, Development, and Demonstration Program, the commission shall do both of the following:

(1) Develop procedures for the solicitation of award applications for project or program funding, and to ensure efficient program management.

(2) Evaluate and select programs and projects, based on merit, that will be funded under the program.

(b) The commission shall adopt regulations to implement the program, in accordance with the following procedures:

(1) Prepare a preliminary text of the proposed regulation and provide a copy of the preliminary text to any person requesting a copy.

(2) Provide public notice of the proposed regulation to any person who has requested notice of the regulations prepared by the commission. The notice shall contain all of the following:

(A) A clear overview explaining the proposed regulation.

(B) Instructions on how to obtain a copy of the proposed regulations.

(C) A statement that if a public hearing is not scheduled for the purpose of reviewing a proposed regulation, any person may request, not later than 15 days prior to the close of the written comment period, a public hearing conducted in accordance with commission procedures.

(3) Accept written public comments for 30 calendar days after providing the notice required in paragraph (2).

(4) Certify that all written comments were read and considered by the commission.

(5) Place all written comments in a record that includes copies of any written factual support used in developing the proposed regulation, including written reports and copies of any transcripts or minutes in connection with any public hearings on the adoption of the regulation. The record shall be open to public inspection and available to the courts.

(6) Provide public notice of any substantial revision of the proposed regulation at least 15 days prior to the expiration of the deadline for public comments and comment period using the procedures provided in paragraph (2).

(7) Conduct public hearings, if a hearing is requested by an interested party, that shall be conducted in accordance with commission procedures.

(8) Adopt any proposed regulation at a regularly scheduled and noticed meeting of the commission. The regulation shall become effective immediately unless otherwise provided by the commission.

(9) Publish any adopted regulation in a manner that makes copies of the regulation easily available to the public. Any adopted regulation shall also be made available on the Internet. The commission shall transmit a copy of an adopted regulation to the Office of Administrative Law for publication, or, if the commission determines that printing the regulation is impractical, an appropriate reference as to where a copy of the regulation may be obtained.

(10) Notwithstanding any other provision of law, this subdivision provides an interim exception from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code for regulations required to implement Sections 25620.1 and 25620.2 that are adopted under the procedures specified in this subdivision.

(11) This subdivision shall become inoperative on January 1, 2012, unless a later enacted statute deletes or extends that date. However, after January 1, 2012, the commission is not required to repeat any procedural step in adopting a regulation that has been completed before January 1, 2012, using the procedures specified in this subdivision.

Public Interest Research Program project funding regulation development solicitation procedures program management public notice public comment public hearing commission procedures adopted regulations regulation publication Office of Administrative Law interim exception transparency in regulation government procedural requirements

(Amended by Stats. 2006, Ch. 512, Sec. 3. Effective September 27, 2006.)

Section § 25620.3

This law section outlines how the commission can give awards for projects or programs. These awards can be given to individuals or groups for planning, implementing, and managing projects. The commission can also give awards to projects that benefit multiple related projects or aggregated parties.

The commission can create multiparty agreements that involve multiple entities working together on funding and research. The law allows for advance payments to be made to contractors and subcontractors, provided there are enforceable contracts with milestones. Awards can also be given where tasks are assigned based on work authorization. Before any award is made, the commission must evaluate the expected costs and benefits of the project.

(a) The commission may, consistent with the requirements of this chapter, provide awards to any individual or entity for planning, implementation, and administration of projects or programs selected pursuant to Section 25620.5.

(b) The commission may provide an award to a project or program that includes a group of related projects, or to a party who aggregates projects that directly benefit from the award.

(c) The commission may establish multiparty agreements. In a multiparty agreement, the commission may be a signatory to a common agreement among two or more parties. These agreements include, but are not limited to, cofunding, leveraged research, collaborations, and membership arrangements. If the commission enters into these agreements, it shall be a party to these agreements and may share in the roles, responsibilities, risks, investments, and results.

(d) The commission may issue awards that include the ability to make advance payments to prime contractors, to enable them to make advance payments to a subcontractor that is a federal agency, national laboratory, or state entity, on the condition that the subcontract is binding and enforceable and includes specific performance milestones.

(e) The commission may issue awards that include the ability to assign tasks on a work authorization basis.

(f) Prior to making any award pursuant to this chapter for a research, development, or demonstration program or project, the commission shall identify the expected costs and any qualitative or quantitative benefits of the proposed program or project.

project awards program administration multigroup projects multiparty agreements cofunding leveraged research collaborations advance payments subcontractor agreements performance milestones work authorization research evaluation cost-benefit analysis planning implementation project management

(Amended by Stats. 2002, Ch. 515, Sec. 4. Effective January 1, 2003.)

Section § 25620.4

This law states that whenever intellectual property (like inventions or creative works) is developed under this chapter, the State of California should receive a fair share of the rights or benefits from it. The state commission in charge can decide how much, if any, should go to California. They have the authority to negotiate with those who receive awards to share the rights or benefits.

(a) To the extent that intellectual property is developed under this chapter, an equitable share of rights in the intellectual property or in the benefits derived therefrom shall accrue to the State of California.

(b) The commission may determine what share, if any, of the intellectual property, or the benefits derived therefrom, shall accrue to the state. The commission may negotiate sharing mechanisms for intellectual property or benefits with award recipients.

intellectual property rights state ownership equitable share commission negotiation benefits sharing award recipients California state share intellectual property development rights sharing mechanisms equitable rights accrual intellectual property benefits negotiation with recipients commission authority state benefits from IP

(Added by Stats. 1997, Ch. 905, Sec. 2. Effective January 1, 1998.)

Section § 25620.5

This section outlines the various methods the commission can use to solicit applications for awards, which may include sealed bids, competitive negotiations, master agreements, and single or sole source methods. Scoring teams reviewing proposals must be mostly state employees and free of conflicts of interest.

The sealed bid method is suitable when specifications are clear, while competitive negotiation is appropriate when details are not fixed or when discussions improve outcomes. Awards can be given on a single or sole source basis if it's in the state's best interests, with certain conditions like demonstrating uniqueness or urgent need.

The commission must notify legislative committees 60 days before taking action under a sole source basis, and awards should prioritize California-based entities. The section is severable, meaning if one part is invalid, others can still apply.

(a) The commission may solicit applications for awards, using a sealed competitive bid, competitive negotiation process, commission-issued intradepartmental master agreement, the methods for selection of professional services firms set forth in Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code, interagency agreement, single source, or sole source method. When scoring teams are convened to review and score proposals, the scoring teams may include persons not employed by the commission, as long as employees of the state constitute no less than 50 percent of the membership of the scoring team. A person participating on a scoring team may not have any conflict of interest with respect to the proposal before the scoring team.

(b) A sealed bid method may be used when goods and services to be acquired can be described with sufficient specificity so that bids can be evaluated against specifications and criteria set forth in the solicitation for bids.

(c) The commission may use a competitive negotiation process in any of the following circumstances:

(1) Whenever the desired award is not for a fixed price.

(2) Whenever project specifications cannot be drafted in sufficient detail so as to be applicable to a sealed competitive bid.

(3) Whenever there is a need to compare the different price, quality, and structural factors of the bids submitted.

(4) Whenever there is a need to afford bidders an opportunity to revise their proposals.

(5) Whenever oral or written discussions with bidders concerning the technical and price aspects of their proposals will provide better results to the state.

(6) Whenever the price of the award is not the determining factor.

(d) The commission may establish interagency agreements.

(e) The commission may provide awards on a single source basis by choosing from among two or more parties or by soliciting multiple applications from parties capable of supplying or providing similar goods or services. The cost to the state shall be reasonable and the commission may only enter into a single source agreement with a particular party if the commission determines that it is in the state’s best interests.

(f) The commission, in accordance with subdivision (g) and in consultation with the Department of General Services, may provide awards on a sole source basis when the cost to the state is reasonable and the commission makes any of the following determinations:

(1) The proposal was unsolicited and meets the evaluation criteria of this chapter.

(2) The expertise, service, or product is unique.

(3) A competitive solicitation would frustrate obtaining necessary information, goods, or services in a timely manner.

(4) The award funds the next phase of a multiphased proposal and the existing agreement is being satisfactorily performed.

(5) When it is determined by the commission to be in the best interests of the state.

(g) The commission may not use a sole source basis for an award pursuant to subdivision (f), unless both of the following conditions are met:

(1) The commission, at least 60 days prior to taking an action pursuant to subdivision (f), 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.

(2) The Joint Legislative Budget Committee either approves or does not disapprove the proposed action within 60 days from the date of notification required by paragraph (1).

(h) The commission shall give priority to California-based entities in making awards pursuant to this chapter.

(i) The provisions of this section are severable. If any provision of this section or its application is held to be invalid, that invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.

For purposes of this Section and Section 25620, “California-based entity” means either of the following:

A corporation or other business form organized for the transaction of business that has its headquarters in California and manufactures in California the product that qualifies for the incentive or award, or a corporation or other business form organized for the transaction of business that has an office for the transaction of business in California and substantially manufactures in California the product that qualifies for the incentive or award, or substantially develops within California the research that qualifies for the incentive or award, as determined by the agency issuing the incentive or award.

competitive negotiation process sealed bids single source agreements sole source agreements scoring teams conflict of interest California-based entities interagency agreements evaluation criteria legislative notification best interests of the state priority to local businesses product manufacturing in California unique expertise or service timely information or services

(Amended by Stats. 2008, Ch. 537, Sec. 4. Effective January 1, 2009.)

Section § 25620.6

This law allows the commission, working with the Department of General Services, to buy insurance needed for implementing an award. The money to pay for this insurance can come from the Public Interest Research, Development, and Demonstration Fund, which is associated with Section 384 of the Public Utilities Code.

The commission, in consultation with the Department of General Services, may purchase insurance coverage necessary to implement an award. Funding for the purchase of insurance may be made from money in the Public Interest Research, Development, and Demonstration Fund created pursuant to Section 384 of the Public Utilities Code.

commission insurance purchase Department of General Services award implementation Public Interest Research Fund Development and Demonstration Fund Section 384 Public Utilities Code insurance funding award insurance government insurance purchase Public Interest Research utilities fund use insurance coverage award funding government collaboration

(Added by Stats. 1997, Ch. 905, Sec. 2. Effective January 1, 1998.)

Section § 25620.7

This section allows the commission to hire or work with different organizations that provide specialized knowledge or services to support their programs. They can use funds from a specific fund called the Public Interest Research, Development, and Demonstration Fund to pay for these services.

The commission can choose these services based on specific qualifications, such as the type of expertise needed or the availability of unique resources that will help complete the work efficiently. They can select from various entities that have already been contracted or have agreements in place to provide similar expertise.

(a) The commission may contract for, or through interagency agreement obtain, technical, scientific, or administrative services or expertise from one or more entities, to support the program. Funding for this purpose shall be made from money in the Public Interest Research, Development, and Demonstration Fund.

(b) The commission may select the services or expertise described in subdivision (a), pursuant to Section 25620.5. In the event that contracts or interagency agreements have been made to multiple entities and their subcontractors for similar purposes, the commission may select from among those entities the particular expertise needed for a specified type of work. Selection of the particular expertise may be based solely on a review of qualifications, including the specific expertise required, availability of the expertise, or access to a resource of special relevance to the work, including, but not limited to, a database, model, technical facility, or a collaborative or institutional affiliation that will expedite the quality and performance of the work.

technical services scientific expertise administrative services Public Interest Research Development Fund Demonstration Fund interagency agreement contract selection entity selection expertise review qualifications resource access collaborative affiliation specialized knowledge program support

(Amended by Stats. 2002, Ch. 515, Sec. 6. Effective January 1, 2003.)

Section § 25620.8

This law requires the commission to prepare an annual report by October 31 each year about its Public Interest Research, Development, and Demonstration Program. The report must include recommendations for program improvements, a summary of the program's impacts and benefits, detailed information on funding allocations and successful projects in natural gas investment areas, future funding plans, and project budgets and outcomes. Additionally, the report should describe any changes to program spending guidelines. The commission is allowed to include information from reports previously given to the Public Utilities Commission, and it must establish criteria for protecting confidential information. The format for submitting the report must comply with a specific section of the Government Code.

(a) The commission shall prepare and submit to the relevant policy committees of the Legislature and the Joint Legislative Budget Committee an annual report, not later than October 31 of each year, that includes, but is not limited to, all of the following information:

(1) Recommendations for improvements in the program.

(2) A summary of the Public Interest Research, Development, and Demonstration Program’s impacts and benefits.

(3) A summary of how funding is allocated to each of the Public Interest Research, Development, and Demonstration Program’s natural gas investment areas.

(4) A description of successful or promising projects funded in each of the Public Interest Research, Development, and Demonstration Program’s natural gas investment areas.

(5) A summary of expected Public Interest Research, Development, and Demonstration Program funding initiatives and activities over the next year.

(6) Information on Public Interest Research, Development, and Demonstration Program-approved project budgets and benefits, all active projects, and recently completed projects.

(7) A description of any recent changes to the Public Interest Research, Development, and Demonstration Program’s spending guidelines or eligible projects.

(b) As part of each annual report submitted pursuant to this section, the commission may include information that has been previously provided in reports submitted to the Public Utilities Commission.

(c) The commission shall establish procedures for protecting confidential or proprietary information and shall consult with all interested parties in the preparation of each annual report submitted pursuant to this section.

(d) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

annual report Public Interest Research program improvements funding allocation natural gas investment project success future initiatives project budgets confidential information report submission program impacts program benefits spending guidelines project outcomes Government Code compliance

(Amended by Stats. 2021, Ch. 115, Sec. 71. (AB 148) Effective July 22, 2021.)

Section § 25620.9

If you receive funding under this chapter for a microgrid project, you cannot use the money to buy diesel generators or diesel backup generators.

For a project related to the deployment of a microgrid, a recipient of moneys awarded pursuant to this chapter shall not expend those moneys for the purchase of diesel generators, including diesel backup generators.

microgrid project funding restriction diesel generators diesel backup generators energy funding microgrid deployment project funding limitations prohibited expenditures renewable energy projects California energy incentives

(Added by Stats. 2017, Ch. 476, Sec. 1. (AB 1400) Effective January 1, 2018.)

Energy Conservation And Development

Chapter 7.1Public Interest Energy Research, Demonstration,and Development Program

Section § 25620

Section § 25620.1

Section § 25620.11

Section § 25620.15

Section § 25620.2

Section § 25620.3

Section § 25620.4

Section § 25620.5

Section § 25620.6

Section § 25620.7

Section § 25620.8

Section § 25620.9

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