Electric Program Investment Charge Fund - - CA Public Resources

Section § 25710

This law defines some key terms used in its chapter. First, the 'Electric Program Investment Charge' is a fee set by the Public Utilities Commission to gather money for renewable energy projects and related research. Second, the term 'Fund' refers to part of the Electric Program Investment Charge Fund set up under another section.

For the purposes of this chapter, the following terms have the following meanings:

(a) “Electric Program Investment Charge” means the surcharge instituted by the Public Utilities Commission pursuant to Decision 11-12-035 or any subsequent decisions to collect funds for renewable energy programs and research, development, and demonstration programs.

(b) “Fund” means the portion of the Electric Program Investment Charge Fund created by Section 25711.

Electric Program Investment Charge surcharge Public Utilities Commission Decision 11-12-035 renewable energy programs research and development demonstration programs Electric Program Investment Charge Fund fund collection energy surcharge sustainable energy funding CA energy initiatives

(Added by Stats. 2012, Ch. 39, Sec. 97. (SB 1018) Effective June 27, 2012.)

Section § 25711

This law establishes the Electric Program Investment Charge Fund within the State Treasury to support specific programs. The Public Utilities Commission collects money and sends it to the Energy Commission, which manages this fund. At least every three months, the funds are to be transferred by the Public Utilities Commission to the commission for appropriate programs. The Controller releases these funds as the commission requests, supporting the chapter's purposes. The Energy Commission can also use some of this money for administrative costs, but only as approved by the Public Utilities Commission and the state budget.

For the purposes of implementing this chapter, the Electric Program Investment Charge Fund is hereby created in the State Treasury.

(a) The commission shall administer the fund.

(b) At least quarterly, moneys received by the Public Utilities Commission pursuant to the Electric Program Investment Charge for those programs the Public Utilities Commission has determined should be administered by the Energy Commission shall be forwarded by the Public Utilities Commission to the commission for deposit in the fund.

(c) The Controller shall, as directed by the commission, disburse moneys in the fund for purposes of this chapter.

(d) The commission may use moneys in the fund for the administration of this chapter, as authorized by the Public Utilities Commission and appropriated by the Legislature in the annual Budget Act.

Electric Program Investment Charge Fund Public Utilities Commission Energy Commission State Treasury fund administration quarterly transfer program support Controller disbursement Legislature appropriation annual Budget Act administrative costs

(Added by Stats. 2012, Ch. 39, Sec. 97. (SB 1018) Effective June 27, 2012.)

Section § 25711.5

This law guides how the California Energy Commission should manage the Electric Program Investment Charge (EPIC) program, which funds research in energy projects. The program's goals are to advance technology benefiting electricity users, reducing electrification costs, and supporting state energy targets.

The commission must establish terms for potential state royalties from funded projects, consider health impacts, and track project outcomes. Reports must be submitted to the Legislature detailing project results and expenditures. Priority is given to competitive bids for project funding, although noncompetitive awards are allowed under certain conditions. Follow-on funding for ongoing projects is detailed, including specific eligibility criteria and a sunset clause in 2028.

In administering moneys in the fund for research, development, and demonstration programs under this chapter, the commission shall develop and implement the Electric Program Investment Charge (EPIC) program to do all of the following:

(a) Award funds for projects that will benefit electricity ratepayers and lead to either of the following:

(1) Technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state’s statutory energy goals and that result in a portfolio of projects that is strategically focused and sufficiently narrow to make advancement on the most significant technological challenges that shall include, but not be limited to, energy storage, renewable energy and its integration into the electrical grid, energy efficiency, integration of electric vehicles into the electrical grid, and accurately forecasting the availability of renewable energy for integration into the electrical grid.

(2) Technological advancements to reduce the costs of building electrification, including by reducing or avoiding costs of expanding electrical service and electrical panel upgrades for existing buildings.

(b) In consultation with the Treasurer, establish terms that shall be imposed as a condition to receipt of funding for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program. The commission, when determining if imposition of the proposed terms is appropriate, shall balance the potential benefit to the state from those terms and the effect those terms may have on the state achieving its statutory energy goals. The commission shall require each reward recipient, as a condition of receiving moneys pursuant to this chapter, to agree to any terms the commission determines are appropriate for the state to accrue any intellectual property interest or royalties that may derive from projects funded by the EPIC program.

(c) Require each applicant to report how the proposed project may lead to technological advancement and potential breakthroughs to overcome barriers to achieving the state’s statutory energy goals.

(d) Take into account, when applicable, the adverse localized health impacts of proposed projects to the greatest extent possible.

(e) Establish a process for tracking the progress and outcomes of each funded project, including an accounting of the amount of funds spent by program administrators and individual grant recipients on administrative and overhead costs and whether the project resulted in any technological advancement or breakthrough to overcome barriers to achieving the state’s statutory energy goals.

(f) Notwithstanding Section 10231.5 of the Government Code, prepare and submit to the Legislature no later than April 30 of each year an annual report in compliance with Section 9795 of the Government Code that shall include all of the following:

(1) A brief description of each project for which funding was awarded in the immediately prior calendar year, including the name of the recipient and the amount of the award, a description of how the project is thought to lead to technological advancement or breakthroughs to overcome barriers to achieving the state’s statutory energy goals, and a description of why the project was selected.

(2) A brief description of each project funded by the EPIC program that was completed in the immediately prior calendar year, including the name of the recipient, the amount of the award, and the outcomes of the funded project.

(3) A brief description of each project funded by the EPIC program for which an award was made in the previous years but that is not completed, including the name of the recipient and the amount of the award, and a description of how the project will lead to technological advancement or breakthroughs to overcome barriers to achieving the state’s statutory energy goals.

(4) Identification of the award recipients that are California-based entities, small businesses, or businesses owned by women, minorities, or disabled veterans.

(5) Identification of which awards were made through a competitive bid, interagency agreement, or sole source method, and the action of the Joint Legislative Budget Committee pursuant to paragraph (2) of subdivision (h) for each award made through an interagency agreement or sole source method.

(6) Identification of the total amount of administrative and overhead costs incurred for each project.

(7) A brief description of the impact on program administration from the allocations required to be made pursuant to former Section 25711.6, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.

(8) A brief description of each project for which follow-on funding was awarded in the immediately prior calendar year, including the amount of follow-on funding awarded for the project and the method and criteria used to select that project.

(g) Establish requirements to minimize program administration and overhead costs, including costs incurred by program administrators and individual grant recipients. Each program administrator and grant recipient, including a public entity, shall be required to justify actual administration and overhead costs incurred, even if the total costs incurred do not exceed a cap on those costs that the commission may adopt.

(h)

(1) Use a competitive bid as the preferred method to solicit project applications and award funds pursuant to the EPIC program, except as specified in paragraphs (2) and (4).

(2)

(A) The commission may use a sole source or interagency agreement method to noncompetitively award funding for a project if the project has a reasonable cost, the project satisfies one or more of the criteria described in subdivision (f) of Section 25620.5, and both of the following conditions are met:

(i) The commission, at least 60 days before making an award pursuant to this subdivision, 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.

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

(B) It is the intent of the Legislature to enact this paragraph to ensure legislative oversight for awards made on a sole source basis, or through an interagency agreement.

(3) Notwithstanding any other law, standard terms and conditions that generally apply to contracts between the commission and any entities, including state entities, do not automatically preclude the award of moneys from the fund through the competitive bid method.

(4)

(A) Notwithstanding any other law, the commission may award, through a noncompetitive method, follow-on funding for projects that meet all of the following requirements:

(i) The project is eligible to receive an award of funds from the EPIC program.

(ii) The project has been funded, at least in part, through the EPIC program.

(iii) The project has a prime recipient that is located in California.

(iv) The project will spend a minimum of 80 percent of its funding from the program in California.

(v) The project has received funding for the original project or technology through a competitive bid process from a state or federal agency.

(vi) The project has demonstrated significant results under its previous award.

(vii) The project has technology breakthrough potential that can enable the state to achieve its statutory energy policy goals on or ahead of schedule.

(viii) The project can address near-term priorities impacting the electricity sector and its ratepayers, such as mitigating wildfires and reducing the occurrence of deenergization events.

(ix) Absent follow-on funding, the project would experience a gap in funding that would likely prevent the technology from achieving significant advancement, negatively impact the ability of the project to attract sufficient private investment, or prevent the project’s commercialization and associated sales revenue.

(x) The project has not previously received follow-on funding through a noncompetitive method.

(B) The commission shall approve any award of follow-on funding at a business meeting.

(C) Follow-on funding is not subject to the requirements of paragraph (2).

(D) A project’s follow-on funding shall not exceed the project’s most recent competitively bid award through the EPIC program.

(E) The commission may adopt guidelines for follow-on funding awards. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the adoption of these guidelines.

(F) This paragraph shall become inoperative on January 1, 2028.

Electric Program Investment Charge EPIC program energy research funding technological advancement electricity ratepayers state energy goals royalties from funded projects competitive bid process sole source funding interagency agreement project tracking legislative report administration costs follow-on funding energy infrastructure California-based projects

(Amended by Stats. 2025, Ch. 15, Sec. 6. (SB 127) Effective June 27, 2025.)

Section § 25711.7

This law states that the Public Utilities Commission can’t collect more money annually than what was decided in specific earlier decisions concerning the Electric Program Investment Charge for the years 2013 to 2020. It ensures the funding collected doesn’t exceed the amounts already set by their previous decisions.

Additionally, this law does not change or impact how another related section, Section 25712, operates.

(a) The Public Utilities Commission shall not require the collection of funds pursuant to its Decision 12-05-037 (May 24, 2012), Phase 2 Decision Establishing Purposes and Governance for Electric Program Investment Charge and Establishing Funding Collections for 2013–2020, as corrected by Decision 12-07-001 (July 3, 2012), Order Correcting Error, and as modified by Decision 13-04-030 (April 18, 2013), Order Modifying Decision (D.) 12-05-037, and Denying Rehearing of Decision, as Modified, in an annual amount greater than the amount specified in those decisions.

(b) This section does not modify, alter, or, in any way, affect the operation of Section 25712.

Public Utilities Commission Electric Program Investment Charge funding collections Decision 12-05-037 Decision 12-07-001 Decision 13-04-030 annual amount limit electric program 2013-2020 funding Phase 2 Decision Section 25712 effect fund limit enforcement

(Added by Stats. 2013, Ch. 356, Sec. 23. (SB 96) Effective September 26, 2013.)

Section § 25711.8

If you receive funding 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 funding restrictions diesel generators diesel backup generators project funding use energy project renewable energy microgrid deployment environmental concerns clean energy incentives

(Added by Stats. 2017, Ch. 476, Sec. 2. (AB 1400) Effective January 1, 2018.)

Section § 25711.9

This law explains that the commission responsible for the Electric Program Investment Charge (EPIC) must consider funding projects that convert biomass into energy. These projects should use innovative technologies that provide the most benefits to the public and electricity users.

In deciding how much funding biomass projects should receive, the commission must take into account advice from environmental and forestry boards and coordinate with several government agencies about the need for biomass projects.

The law also encourages looking for ways these projects can reduce harmful greenhouse gases, support energy reliability, combat wildfires, and even capture more carbon than they emit.

(a) The commission shall consider, in the investment planning process for the Electric Program Investment Charge (EPIC) program, funding for eligible biomass conversion, as defined in Section 40106, to energy projects using new and emerging technologies that maximize ratepayer and public benefits.

(b) In determining the appropriate amount of EPIC funding for biomass conversion, the commission shall consider the recommendations of the State Air Resources Board and the State Board of Forestry and Fire Protection, and shall coordinate with the Natural Resources Agency, the Department of Resources Recycling and Recovery, and the Department of Food and Agriculture about the need for biomass conversion.

(c) The commission shall also consider opportunities to reduce short-lived climate pollutant emissions, generate carbon negative emissions, reduce wildfire impacts, and increase energy reliability.

biomass conversion funding EPIC program new technologies in energy ratepayer benefits public benefits State Air Resources Board State Board of Forestry and Fire Protection Natural Resources Agency Resources Recycling and Recovery Department of Food and Agriculture short-lived climate pollutants carbon negative emissions wildfire impact reduction energy reliability

(Added by Stats. 2021, Ch. 229, Sec. 2. (AB 322) Effective January 1, 2022.)

Section § 25712

This law makes it clear that it doesn't give the Public Utilities Commission any new power to create or raise any fees or charges. It also doesn't take away any authority they might already have to do so. Essentially, it's saying things remain as they are regarding the Commission's ability to impose or change charges.

This chapter does not authorize the levy of a charge or any increase in the amount collected pursuant to any existing charge, nor does it add to, or detract from, any existing authority of the Public Utilities Commission to levy or increase charges.

Public Utilities Commission charge levy no increase authority existing charges utilities fees charge authority fee collection regulatory limits commission powers utilities regulation service fees rate changes utility charge adjustments fee authority charge imposition

(Added by Stats. 2012, Ch. 39, Sec. 97. (SB 1018) Effective June 27, 2012.)

Energy Conservation And Development

Chapter 8.1Electric Program Investment Charge Fund

Section § 25710

Section § 25711

Section § 25711.5

Section § 25711.7

Section § 25711.8

Section § 25711.9

Section § 25712

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