HomeMy WebLinkAboutApprove City Council position on legislation pending before Dept. ID AD-18-011 Page 1 of 3
Meeting Date: 5/21/2018
_ CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 5/21/2018
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Antonia C. Graham, Assistant to the City Manager
SUBJECT: Approve City Council position on legislation pending before the State Legislature
as recommended by the Intergovernmental Relations Committee (IRC)
Statement of Issue:
On April 30, 2018, the Intergovernmental Relations Committee met and members
recommended actions on pending legislation. This action requests City Council
authorization for the Mayor to sign official City position letters.
Financial Impact:
There is no fiscal impact.
Recommended Action:
A) Approve a City position of oppose on AB 1912 (Rodriguez), and,
B) Approve a City position of support on AB 3162 (Friedman); and,
C) Approve a City position of support on AB 3178 (Rubio); and,
D) Approve a City position of oppose on AB 3232 (Friedman); and,
E) Approve a City position of support on the State Budget Augmentation Funding Request
to Strengthen Disaster Response Initiative.
Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
Analysis:
The Intergovernmental Relations Committee (IRC) met to discuss pending legislation and
regional issues. The Committee reviewed the 2018 State Legislative Matrix provided by the
City's State Advocate, Townsend Public Affairs, discussed potential statewide ballot
initiatives, and regional water quality issues. The following is an analysis of bills/positions
that the IRC voted to take a position on.
OPPOSE — AB 1912 (Rodriguez) — Public Employees' Retirement: Joint Powers
Agreements
Item 5. - 1 HB -30-
Dept. ID AD-18-011 Page 2 of 3
Meeting Date: 5/21/2018
As amended, this bill would place substantial burdens and new unworkable
requirements on cities by applying retroactive as well as prospective joint and several
liability for all retirement related obligations to any current or former member of a Joint
Powers Agreement (JPA) throughout its existence.
Such obligations include active employee pension costs, retiree unfunded accrued
liabilities (UAL), as well as both active and retiree healthcare and other post-
employment retirement benefits (OPEB). Additionally, the measure would mandate that
a public retirement agency (e.g. PERS) file suit against all agencies that have ever been
a member of a terminated JPA for all retirement related obligations and prohibits any
retirement system from approving a new JPA without express joint and several liability
provisions. The provisions in AB 1912 create significant constitutional, fiscal and
operational impacts which would effectively eliminate the ability for the City to create or
maintain the use of most JPAs without increasing its unfunded pension liability.
The bottom line is, if this bill becomes law, JPAs in California would cease to be a viable
way for local governments and the state to collaboratively address service needs that
cannot be achieved by each agency on its own. JPAs are formed to accomplish a wide
range of services such as regional public improvements, local and statewide
infrastructure, emergency communications, law enforcement, fire protection, emergency
medical response, and public financing.
➢ SUPPORT — Assembly Bill 3162 (Friedman) — Alcoholism or Drug Abuse
Treatment Facilities
Existing law provides for the licensure and regulation of alcoholism or drug abuse
recovery or treatment facilities serving adults by the State Department of Health Care
Services. Existing law makes a violation of these provisions punishable by a civil
penalty. Additionally, this bill would make initial licenses issued to providers provisional
for one year and revocable for good cause. All programs and medical services offered
or provided by a licensed alcoholism or drug abuse recovery or treatment facility would
be specified in the license application and provided exclusively within the licensed
facility on the licensed property and for the benefit of the residents. The bill would
increase the penalties for a violation. This is a necessary first step that further action
must be taken to guarantee the safety of patients and the broader community.
SUPPORT — Assembly Bill 3178 (Rubio) — Integrated Waste Management Plans —
Source Reduction and Recycling Element— Diversion Requirements
Existing law requires a city, county or regional agency to submit an annual report to the
California Department of Resources, Recycling, and Recovery (CalRecycle)
summarizing its progress in reducing solid waste. The law further requires that
CalRecycle review a jurisdiction's compliance with the diversion requirements every two
to four years, and authorizes CalRecycle to issue an Order of Compliance if the
Department finds the jurisdiction failed to make a good faith effort to implement its
source reduction and recycling element.
The bill would make the finding that under China's Green Fence and now National
Sword policies, many recyclable materials are now banned and may no longer be
incorporated into that country, which has had a profound impact on California's efforts
to meet state recycling objectives. This bill would require the department, when
evaluating the jurisdiction's good faith effort to implement a diversion, to also consider
whether China's current policies caused the absence or loss of a market for recyclable
HB -)I- Item 5. - 2
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Meeting Date: 5/21/2018
materials that necessitated the disposal of those materials as a temporary measure to
avoid a public health threat.
Currently, the City's franchise hauler is struggling to find markets for recyclable
commodities as overseas markets are closing their doors. This bill would enable the
City to remain in compliance with diversion mandates as CalRecycle would take into
consideration existing market conditions for secondary feedstock.
OPPOSE — Assembly Bill 3232 (Friedman)
AB 3232 would require the state's Public Utility Commission (PUC) to develop a plan to
achieve the goal of reducing the emissions of greenhouse gases by the state's
residential and commercial building stock by at least 40% below 1990 levels by January
1 , 2030. Electric water heaters and heat pumps are significantly more expensive
than their gas counterparts. The state's incentive programs have yet to adapt a
transition from gas to electric. Most consumers are eligible for some kind of rebate from
a utility company when they replace inefficient electric appliances with more efficient
models; however, rebates are not available for moving from gas to electric.
This legislation will place burdensome costs on property owners. AB 3232 building
owners replace reliable and working building infrastructure systems with untested and
expensive models. Further, this legislation would propose transitioning buildings away
from natural gas at a time when costs are very low to consumers. AB 3232 will increase
the utility bills of Huntington Beach residents and all Californians.
In addition to the aforementioned bills, the IRC also heard a presentation from the Fire
Department requesting support of a budget augmentation request of $100 million for
expanding the mutual aid system. This request comes from a coalition of California's fire
service — including fire chiefs and firefighters at the local and state level.
The state budget proposal to spend an additional $100 million for disaster readiness is
supported by recommendations made in the 2003 Governor's Blue Ribbon Commission,
which was convened in the wake of major wildfires in San Diego, to enhance local
firefighting capabilities. The mega fires in 2017 brought to light the need for increased
resources in the face of more extreme weather conditions. The Mutual Aid System, as
effective as it has been, needs to be both proactive as well as reactive. This budget
augmentation would expand the system's capabilities and be proactive. The IRC voted to
support the budget augmentation request and allow the Fire Department to officially
support this request.
Environmental Status: Not applicable.
Strategic Plan Goal: Improve quality of life
Attachment(s):
1. AB 1912 (Rodriguez)
2. AB 3162 (Friedman)
3. AB 3178 (Rubio)
4. AB 3232 (Friedman)
5. Fact Sheet — Budget Augmentation Request
Item 5. - 3 HB -32-
ATTACHMENT # 1
AMENDED IN ASSEMBLY APRIL 19, 2018
AMENDED IN ASSEMBLY MARCH 19, 2018
CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION
ASSEMBLY BILL No. 1912
Introduced by Assembly Member Rodriguez
January 23, 2018
An act to amend Section 6508.1 of,to add Sections 6508.2,20461.1,
20574.1, and 20575.1 to, and to repeal and add Section 20577.5 of, the
Government Code, and to amend Section 366.2 of the Public Utilities
Code,relating to public agencies,and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1912, as amended, Rodriguez. Public employees' retirement:
joint powers agreements: liability.
(1) Existing law establishes various public agency retirement systems,
including, among others, the Public Employees' Retirement System,
the State Teachers'Retirement System,the Judges'Retirement System
11, and various county retirement systems pursuant to the County
Employees Retirement Law of 1937. These systems provide defined
pension benefits to public employees based on age, service credit, and
amount of final compensation.
The Joint Exercise of Powers Act generally authorizes 2 or more
public agencies, by agreement, to jointly exercise any common power.
Under the act, if the agency is not one or more of the parties to the
agreement but is a public entity, commission, or board constituted
pursuant to the agreement, the debts, liabilities, and obligations of the
agency are the debts, liabilities, and obligations of the parties to the
agreement,unless the agreement specifies othefwise. Existing la-w also
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HB _33_ Item 5. - 4
AB 1912 —2—
-ftits otherwise and except as otherwise provided with respect to
certain community choice aggregator joint powers agencies. The act
also authorizes a party to-an a joint powers agreement to separately
contract for, or assume responsibilities for, specific debts, liabilities, or
obligations of the agency. Existing lavt,with respeet to eleetrieal loads,
pertnits en ities authorized to be eommunity ehoiee aggregators to
in theirjoint powers agt:eement that the debts,lia-bilities, and obligations
of the ageney shall not be those of the fflembetzs of the agener.
This bill would eliminate the abo.- within the joint
Exereise of Powers Aet and those related provisions for eommuntty
that permit a pafty to sepfAl"L�Iy �IJIIL ct-A Fof those debts, liabilities, of
Obligations.
This bill woul additionally eliminate that authorization, would
specify that if an agency to a joint powers agreement participates in a
public retirement system, all parties, both current and former to the
agreement, would be jointly and severally liable for all obligations to
the retirement-sys+etft-. system, and would eliminate the authority of
those parties to agree otherwise with respect to the retirement liabilities
of the agency. The bill would also provide that if a judgment is rendered
against an agency or a party to the agreement for a breach of its
obligations to the retirement system, the time within which a claim for
injury may be presented or an action commenced against the other party
that is subject to the liability detennined by the judgment begins to run
when the judgment is rendered. The bill would specify that those
provisions apply retroactively to all.parties, both current and former,
to the joint powers agreement.
(2) The Public Employees'Retirement Law(PERL)creates the Public
Employees' Retirement System (PERS), which provides a defined
benefit to members of the system,based on final compensation,credited
service, and age at retirement, subject to certain variations.PERL vests
management and control of PERS in its Board ofAdministration. Under
PERL, the board may refuse to contract with, or to agree to an
amendment proposed by, any public agency for any benefit provisions
that are not specifically authorized by that law and that the board
determines would adversely affect the administration of the retirement
system.
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Item 5. - 5 HB -34-
—3— AB 1912
This bill would prohibit the board from contracting with any public
agency formed under the Joint Exercise of Powers Act unless all the
parties to that agreement are jointly and severally liable for all of the
public agency's obligation to the system. The bill would specify that
those provisions apply retroactively to all parties, both current and
foriner, to the agreement. The bill would also require any current
agreement that does not ineet these requirements to be reopened to
include a provision holding all member agencies party to the agreement
jointly and severally liable for all of the public agency's obligations to
the system.
(3) Existing law authorizes the governing board of a contracting
agency to terminate its membership with PERS, subject to specified
criteria. Existing law requires the PERS board to enter into a specified
agreement with the governing body of a tenninating agency, upon
request of that agency, to ensure that final compensation is calculated
in the same manner as benefits of nonterminating agencies, and that
related necessary adjustments in the employer's contribution rate are
made and benefits adequately funded, including a lump-sum payment
at termination, if agreed to by the terminating agency and the board.
Existing law requires a terminating agency to notify the PERS board
of its intention to enter into this agreement within a specified period of
time. Existing law authorizes the PERS board to choose not to enter
into an agreement to terminate if the board determines that it is not in
the best interests of PERS. Existing law requires all plan assets and
liabilities of a terminating agency to be deposited in a single pooled
account, the terminated agency pool subaccount within the Public
Employees'Retirement Fund, a continuously appropriated fund.
This bill would also require the PERS board to enter into the
above-described agreement upon request of a member agency of a
terminating agency fonned under the Joint Exercise of Powers Act, and
would require a member agency to notify the PERS board of its intention
to enter into this agreement within a specified period of time. The bill
would authorize the board, if it determines that it is not in the best
interests of the retirement system, to choose not to enter into that
agreement. To the extent that the bill would increase any lump-sum
payments made by a terminating agency and deposited into a subaccount
within the Public Employees' Retirement Fund, the bill would make
an appropriation.The bill would also provide that if the governing body
of a terminating agency or the governing bodies of its member agencies
do not enter into an agreement,the member agencies would then assume
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14a -35- Item 5. - 6
AB 1912 —4—
the retirement obligations for their retirement ,
wottid be reqttired to ap ably among the member
systems, by apportionment among the member agencies as mutually
agreed to by those agencies, or as determined by the board if the
member agencies are unable to mutually agree, as prescribed.
(4) Existing law makes a tenninated agency liable to the system for
any deficit in funding for earned benefits, interest, and for reasonable
and necessary costs of collection, including attorney's fees. Existing
law provides that the board has a lien on the assets of a terminated
contracting agency, as specified, and that assets shall also be available
to pay actual costs, including attorney's fees necessarily expended for
collection on the lien.
This bill would extend that liability and lien to all of the parties of a
tenninating agency that was formed under the Joint Exercise of Powers
Act. The bill would specify that the liability of those parties is joint and
several. To the extent that these changes would increase deposits in the
Public Employees' Retirement Fund, the bill would make an
appropriation.
(5) Existing law authorizes the board of PERS to elect not to impose
a reduction, or to impose a lesser reduction, on a terminated plan if the
board has made all reasonable efforts to collect the amount necessary
to fully fund the liabilities of the plan and the board finds that not
reducing the benefits, or imposing a lesser reduction, will not impact
the actuarial soundness of the terminated agency pool.
This bill would eliminate that provision. The bill would require the
board to bring a civil action against any member agencies to a terminated
agency formed by an agreement under the Joint Exercise of Powers Act
to compel payment of the terminated public agency's pension
obligations. The bill would also specify that the board is entitled to
reasonable attorney's fees in addition to other costs.The bill would also
set forth related legislative findings.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature finds and declares as follows:
2 (a) Retirement security is important to families, workers, and
3 communities, as well as to the local, regional, and statewide
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Item 5. - 7 H-B -36-
-5— AB 1912
1 economies, and provides financial security and dignity to those
2 who retire.
3 (b) A defined benefit plan offers, among other types of
4 retirement plans, a guarantee of financial security in retirement.
5 (c) A Joint Power Authority(JPA) created pursuant to the Joint
6 Exercise of Powers Act (Chapter 5 (commencing with Section
7 6500) of Division 7 of Title 1 of the Government Code) provides
8 important services and benefits to its geographical areas and
9 communities.
10 (d) A JPA may offer a defined benefit plan to attract, recruit,
11 and retain highly skilled employees toward providing services and
12 fulfilling its purpose.
13 (e) Employees who have been promised a retirement allowance
14 and the other benefits of a defined benefit plan by their employer
15 should be provided those benefits after reaching the requisite age,
16 based on years of service and an established benefit formula, as
17 promised by that employer.
18 (0 Further, an employee who accepts employment with a JPA
19 employer that promises a defined benefit plan may detrimentally
20 rely on the retirement benefit, as committed by the employer,
21 during his or her employment and retirement from that employer.
22 (g) Moreover, a JPA might have limited sources of revenue,
23 and an inability to increase,or secure additional sources of revenue,
24 that may lead to financial distress or insolvency of the JPA, absent
25 the financial surety of its member agencies and for the retirement
26 benefits of the JPA's employees.
27 (h) Additionally, employees who rely on a promise by a JPA
28 employer to provide retirement benefits by accepting and
29 maintaining employment with the employer based partly on the
30 employer's promise may do so to their own retirement detriment.
31 (1) Thus, member agencies of a JPA should not be permitted to
32 absolve themselves of financial liability, in whole or in part, of
33 the financial distress or insolvency of a JPA that results in
34 reductions in a defined benefit plan retirement allowance of a
35 retired JPA employee, of which the agencies are members.
36 0) Therefore,in order to ensure that the Board ofAdministration
37 of the Public Employees' Retirement System is meeting its
38 fiduciary duties and responsibilities to its members and the system,
39 the board should be pennitted to seek legal redress on behalf of
40 its members as a result of the financial insolvency of a JPA that
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HB -37- Item 5. - 8
AB 1912 —6-
1 contracts with the retirement system if the financial distress or
2 insolvency of the JPA may result in a reduction of retirement
3 benefits to its members.
4 (k) Further, to ensure that the board is meeting its fiduciary
5 duties and responsibilities, both current and future contracts with
6 the retirement system by a JPA must include joint and several
7 liability provisions that apply to all agencies under the agreement
8 in order to protect the members of the retirement system against
9 financial insolvency.
10 SEC. 2. Section 6508.1 of the Government Code is amended
11 to read:
12 6508.1. If the agency is not one or more of the parties to the
13 agreement but is a public entity, commission, or board constituted
14 pursuant to the agreement,the debts,liabilities,and obligations of
15 the agency shall be debts, liabilities, and obligations of the parties
16 to the agfeement. agreement, unless the agreement species
17 otherwise. However, the parties to the agreement may not agree
18 otherwise with respect to the retirement liabilities of the agency
19 if the agency contracts with a public retirement system.
20 SEC. 3. Section 6508.2 is added to the Government Code, to
21 read:
22 6508.2. (a) Notwithstanding Section 6508.1, if the agency
23 participates in a public retirement system, all parties,both current
24 and former, to the agreement, including all amendments thereto,
25 shall be jointly and severally liable for all obligations to the
26 retirement system.
27 (b) Notwithstanding any other law, if a judgment is rendered
28 against an agency or a party to the agreement for a breach to its
29 obligations to the public retirement system,the time within which
30 a claim for injury may be presented or an action commenced
31 against any other party that is subject to the liability determined
32 by the judgment begins to run when the judgment is rendered.
33 (c) This section shall apply retroactively to all parties, both
34 current and former, to the agreement.
35 SEC. 4. Section 20461.1 is added to the Government Code, to
36 read:
37 20461.1. (a) The board shall not contract with any public
38 agency formed by an agreement under Chapter 5 (commencing
39 with Section 6500) of Division 7 of Title 1 unless all the parties
40 to that agreement, including all amendments thereto, are jointly
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Item 5. - 9 HB -38-
-7— AB 1912
1 and severally liable for all of the public agency's obligations to
2 this system.
3 (b) This section shall apply retroactively to all parties, both
4 current and former, to the agreement. Any current agreement
5 forning a public agency under Chapter 5 (commencing with
6 Section 6500) of Division 7 of Title 1 that does not meet the
7 requirements set forth in this section shall be reopened to include
8 a provision holding all member agencies party to the agreement
9 jointly and severally liable for all of the public agency's obligations
10 to this system.
11 SEC. 5. Section 20574.1 is added to the Government Code, to
12 read:
13 20574.1. In lieu of the procedure set forth in Section 20574,
14 all parties to a tenninating agency that was formed by an agreement
15 under Chapter 5 (commencing with Section 6500) of Division 7
16 of Title 1 shall be jointly and severally liable to the system for any
17 deficit in funding for earned benefits, as determined pursuant to
18 Section 20577, interest at the actuarial rate from the date of
19 termination to the date the agency pays the system,and reasonable
20 and necessary costs of collection, including attorneys' fees. The
21 board shall have a lien on the assets of a terminated contracting
22 agency and on the assets of all parties to the tenninating contracting
23 agency, subject only to a prior lien for wages, in an amount equal
24 to the actuarially determined deficit in funding for earned benefits
25 of the employee members of the agency, interest, and collection
26 costs. The assets shall also be available to pay actual costs,
27 including attorney's fees, necessarily expended for collection of
28 the lien.
29 SEC. 6. Section 20575.1 is added to the Government Code, to
30 read:
31 20575.1. (a) Notwithstanding any other provision of this part
32 to the contrary, upon request of a terminating agency formed by
33 an agreement under Chapter 5 (commencing with Section 6500)
34 of Division 7 of Title 1 or of any member agency to the agreement,
35 the board shall enter into an agreement with the governing body
36 of a terminating agency or the governing body of the member
37 agency in order to ensure that (1) the final compensation used in
38 the calculation of benefits of its employees shall be calculated in
39 the same manner as the benefits of employees of agencies that are
40 not terminating, regardless of whether they retire directly from
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HB -39- Item 5. - 10
AB 1912
1 employment with the tenninating agency or continue in other
2 public service; and (2) related necessary adjustments in the
3 employer's contribution rate are made, from time to time, by the
4 board prior to the date of termination to ensure that benefits are
5 adequately funded or any other actuarially sound payment
6 technique,including a lump-sum payment at termination,is agreed
7 to by the governing body of the terminating agency and the board.
8 (b) A terminating agency formed by an agreement under Chapter
9 5 (commencing with Section 6500) of Division 7 of Title 1 that
10 will cease to exist or its member agency shall notify the board not
11 sooner than three years nor later than one year prior to the
12 terminating agency's termination date of its intention to enter into
13 agreement pursuant to this section. The terms of the agreement
14 shall be reflected in an amendment to the agency's contract with
15 the board.
16 (c) If the board, itself, detennines that it is not in the best
17 interests of the system, it may choose not to enter into an agreement
18 pursuant to this section.
19 (d) If the governing body of a terminating agency formed by
20 an agreement under Chapter 5 (commencing with Section 6500)
21 of Division 7 of Title 1 or the governing bodies of its member
22 agencies do not enter into an agreement pursuant to this section,
23 the member agencies shall assume the retirement obligations on
24 their retirement systems.The board shall appoftion the obligati
25 among the member ageneien in an equitable mannef. Member
26 agencies of the agency shall mutually agree as to the
27 apportionment of the agency's retirement obligations among
28 themselves provided that the agreement equals the total retirement
29 liability of the agency. A copy of this mutual agreement signed by
30 all parties thereto shall be provided to the board, which shall be
31 reflected in the agreement with the board. If the member agencies
32 are unable to mutually agree to apportionment of the total
33 retirement liability of the agency, the board shall, in its discretion,
34 apportion the retirement liability of the agency to each member
35 agency such that the apportionment equals the total retirement
36 liability of the agency, which shall be reflected in the agreement
37 with the board However, if after the board apportions the
38 retirement liability, the member agencies mutually agree to
39 apportionment that equals the total retirement liability of the
40 agency, a copy of that agreement signed by all parties thereto shall
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Item 5. - 11 xB -40-
-9— AB 1912
1 be provided to the board, which shall supersede the apportionment
2 made by the board, and be reflected in the agreement with the
3 board.
4 SEC. 7. Section 20577.5 of the Government Code is repealed.
5 SEC. 8. Section 20577.5 is added to the Government Code, to
6 read:
7 20577.5. The board shall bring a civil action against any and
8 all of the member agencies that are parties to a terminated agency
9 formed by an agreement under Chapter 5 (commencing with
10 Section 6500) of Division 7 of Title 1 to compel payment of the
1 l terminated agency's pension obligations, and shall be entitled to
12 reasonable attorneys' fees in addition to other costs.
13 SEC. 9. Section 366.2 of the Public Utilities Code is amended
14 to read:
15 366.2. (a) (1) Customers shall be entitled to aggregate their
16 electric loads as members of their local community with
17 community choice aggregators.
18 (2) Customers may aggregate their loads through a public
19 process with community choice aggregators, if each customer is
20 given an opportunity to opt out of his or her community's
21 aggregation program.
22 (3) If a customer opts out of a community choice aggregator's
23 program, or has no community choice aggregation program
24 available,that customer shall have the right to continue to be served
25 by the existing electrical corporation or its successor in interest.
26 (4) The implementation of a community choice aggregation
27 program shall not result in a shifting of costs between the customers
28 of the community choice aggregator and the bundled service
29 customers of an electrical corporation.
30 (5) A community choice aggregator shall be solely responsible
31 for all generation procurement activities on behalf of the
32 community choice aggregator's customers, except where other
33 generation procurement arrangements are expressly authorized by
34 statute.
35 (b) If a public agency seeks to serve as a community choice
36 aggregator, it shall offer the opportunity to purchase electricity to
37 all residential customers within its jurisdiction.
38 (c) (1) Notwithstanding Section 366, a community choice
39 aggregator is hereby authorized to aggregate the electrical load of
40 interested electricity consumers within its boundaries to reduce
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HB -41- Item 5. - 12
AB 1912 —10—
1 transaction costs to consumers,provide consumer protections,and
2 leverage the negotiation of contracts. However, the community
3 choice aggregator may not aggregate electrical load if that load is
4 served by a local publicly owned electric utility. A community
5 choice aggregator may group retail electricity customers to solicit
6 bids, broker, and contract for electricity and energy services for
7 those customers.The community choice aggregator may enter into
8 agreements for services to facilitate the sale and purchase of
9 electricity and other related services. Those service agreements
10 may be entered into by an entity authorized to be a community
11 choice aggregator, as defined in Section 331.1.
12 (2) Under community choice aggregation, customer participation
13 may not require a positive written declaration, but each customer
14 shall be informed of his or her right to opt out of the community
15 choice aggregation program. If no negative declaration is made
16 by a customer, that customer shall be served through the
17 community choice aggregation program. If an existing customer
18 moves the location of his or her electric service within the
19 jurisdiction of the community choice aggregator, the customer
20 shall retain the same subscriber status as prior to the move,unless
21 the customer affinnatively changes his or her subscriber status. If
22 the customer is moving from outside to inside the jurisdiction of
23 the community choice aggregator, customer participation shall not
24 require a positive written declaration, but the customer shall be
25 informed of his or her right to elect not to receive service through
26 the community choice aggregator.
27 (3) A community choice aggregator establishing electrical load
28 aggregation pursuant to this section shall develop an
29 implementation plan detailing the process and consequences of
30 aggregation.The implementation plan,and any subsequent changes
31 to it, shall be considered and adopted at a duly noticed public
32 hearing. The implementation plan shall contain all of the following:
33 (A) An organizational structure of the program, its operations,
34 and its funding.
35 (B) Ratesetting and other costs to participants.
36 (C) Provisions for disclosure and due process in setting rates
37 and allocating costs among participants.
38 (D) The methods for entering and terminating agreements with
39 other entities.
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Item 5. - 13 HB -42-
-11— AB 1912
1 (E) The rights and responsibilities of program participants,
2 including, but not limited to, consumer protection procedures,
3 credit issues, and shutoff procedures.
4 (F) Termination of the program.
5 (G) A description of the third parties that will be supplying
6 electricity under the program, including, but not limited to,
7 information about financial,technical,and operational capabilities.
8 (4) A community choice aggregator establishing electrical load
9 aggregation shall prepare a statement of intent with the
10 implementation plan. Any community choice load aggregation
11 established pursuant to this section shall provide for the following:
12 (A) Universal access.
13 (B) Reliability.
14 (C) Equitable treatment of all classes of customers.
15 (D) Any requirements established by state law or by the
16 commission concerning aggregated service, including those rules
17 adopted by the commission pursuant to paragraph (3) of
18 _ subdivision (b) of Section 8341 for the application of the
19 greenhouse gases emission performance standard to community
20 choice aggregators.
21 (5) In order to detennine the cost-recovery mechanism to be
22 imposed on the community choice aggregator pursuant to
23 subdivisions (d), (e), and(0 that shall be paid by the customers of
24 the community choice aggregator to prevent shifting of costs, the
25 community choice aggregator shall file the implementation plan
26 with the commission, and any other infonnation requested by the
27 commission that the commission determines is necessary to develop
28 the cost-recovery mechanism in subdivisions (d), (e), and (f).
29 (6) The commission shall notify any electrical corporation
30 serving the customers proposed for aggregation that an
31 implementation plan initiating community choice aggregation has
32 been filed, within 10 days of the filing.
33 (7) Within 90 days after the community choice aggregator
34 establishing load aggregation files its implementation plan, the
35 commission shall certify that it has received the implementation
36 plan,including any additional information necessary to determine
37 a cost-recovery mechanism. After certification of receipt of the
38 implementation plan and any additional information requested,
39 the commission shall then provide the community choice
40 aggregator with its findings regarding any cost recovery that must
97
KB -43_ Item 5. - 14
AB 1912 —12—
1 be paid by customers of the community choice aggregator to
2 prevent a shifting of costs as provided for in subdivisions (d), (e),
3 and(f).
4 (8) No entity proposing community choice aggregation shall
5 act to furnish electricity to electricity consumers within its
6 boundaries until the commission determines the cost recovery that
7 must be paid by the customers of that proposed community choice
8 aggregation program, as provided for in subdivisions (d), (e), and
9 (f). The commission shall designate the earliest possible effective
10 date for implementation of a community choice aggregation
11 prograrn, taking into consideration the impact on any annual
12 procurement plan of the electrical corporation that has been
13 approved by the commission.
14 (9) All electrical corporations shall cooperate fully with any
15 community choice aggregators that investigate, pursue, or
16 implement community choice aggregation programs.Cooperation
17 shall include providing the entities with appropriate billing and
18 electrical load data, including, but not limited to, electrical
19 consumption data as defined in Section 8380 and other data
20 detailing electricity needs and patterns of usage, as determined by
21 the commission, and in accordance with procedures established
22 by the commission. The commission shall exercise its authority
23 pursuant to Chapter 11 (commencing with Section 2100)to enforce
24 the requirements of this paragraph when it finds that the
25 requirements of this paragraph have been violated. Electrical
26 corporations shall continue to provide all metering, billing,
27 collection, and customer service to retail customers that participate
28 in community choice aggregation programs. Bills sent by the
29 electrical corporation to retail customers shall identify the
30 community choice aggregator as providing the electrical energy
31 component of the bill. The commission shall determine the terms
32 and conditions under which the electrical corporation provides
33 services to community choice aggregators and retail customers.
34 (10) If the commission finds that an electrical corporation has
35 violated this section, the commission shall consider the impact of
36 the violation upon community choice aggregators.
37 (11) The commission shall proactively expedite the complaint
38 process for disputes regarding an electrical corporation's violation
39 of its obligations pursuant to this section in order to provide for
40 timely resolution of complaints made by community choice
97
Item 5. - 15 H B -44-
-13— AB 1912
1 aggregation programs, so that all complaints are resolved in no
2 more than 180 days following the filing of a complaint by a
3 community choice aggregation program concerning the actions of
4 the incumbent electrical corporation. This deadline may only be
5 extended under either of the following circumstances:
6 (A) Upon agreement of all of the parties to the complaint.
7 (B) The commission makes a written determination that the
8 deadline cannot be met, including findings for the reason for this
9 determination, and issues an order extending the deadline.A single
10 order pursuant to this subparagraph shall not extend the deadline
1 l for more than 60 days.
12 (12) (A) An entity authorized to be a community choice
13 aggregator, as defined in Section 331.1, that elects to implement
14 a community choice aggregation program within its jurisdiction
15 pursuant to this chapter, shall do so by ordinance. A city, county,
16 or city and county may request, by affinnative resolution of its
17 governing council or board, that another entity authorized to be a
18 community choice aggregator act as the community choice
19 aggregator on its behalf. If a city, county, or city and county, by
20 resolution, requests another authorized entity be the community
21 choice aggregator for the city, county, or city and county, that
22 authorized entity shall be responsible for adopting the ordinance
23 to implement the community choice aggregation program on behalf
24 of the city, county, or city and county.
25 (B) (i� Two or more entities authorized to be a community
26 choice aggregator, as defined in Section 331.1, may participate as
27 a group in a community choice aggregation program pursuant to
28 this chapter, through a joint powers agency established pursuant
29 to Chapter 5 (commencing with Section 6500) of Division 7 of
30 Title 1 of the Government Code, if each entity adopts an ordinance
31 pursuant to subparagraph (A).
32 (ii) Pursuant to Section 6508.1 of the Government Code,
33 members of a joint powers agency that is a community choice
34 aggregator may speck in their joint powers agreement that, unless
35 otherwise agreed by the members of the agency, the debts,
36 liabilities, and obligations of the agency shall not be the debts,
37 liabilities, and obligations, either jointly or severallj; of the
38 members of the agency.
97
HB -45- Item 5. - 16
AB 1912 —14-
1 (iii) Notwithstanding clause (ii), if the agency contracts with a
2 public retirement system, the members of the agency shall be jointly
3 and severally liable for the retirement liabilities of the agency.
4 (iv) Except as provided in clause(iii), the commission shall not.
5 as a condition of registration or otherwise, require an agency's
6 members to voluntarily assume the debts, liabilities, and
7 obligations of the agency to the electrical corporation unless the
8 commission finds that the agreement by the agency's members is
9 the only reasonable means by which the agency may establish its
10 creditworthiness under the electrical corporation's tariff to pay
11 charges to the electrical corporation under the tar
12 (13) Following adoption of aggregation through the ordinance
13 described in subparagraph (A) of paragraph (12), the program
14 shall allow any retail customer to opt out and to continue to be
15 served as a bundled service customer by the existing electrical
16 corporation, or its successor in interest. Delivery services shall be
17 provided at the same rates, terms, and conditions, as approved by
18 the commission,for community choice aggregation customers and
19 customers that have entered into a direct transaction where
20 applicable, as determined by the commission. Once enrolled in
21 the aggregated entity, any ratepayer that chooses to opt out within
22 60 days or two billing cycles of the date of enrollment may do so
23 without penalty and shall be entitled to receive default service
24 pursuant to paragraph(3)of subdivision(a). Customers that return
25 to the electrical corporation for procurement services shall be
26 subject to the same terms and conditions as are applicable to other
27 returning direct access customers from the same class, as
28 determined by the commission, as authorized by the commission
29 pursuant to this code or any other provision of law, except that
30 those customers shall be subject to no more than a 12-month stay
31 requirement with the electrical corporation. Any reentry fees to
32 be imposed after the opt-out period specified in this paragraph,
33 shall be approved by the commission and shall reflect the cost of
34 reentry. The commission shall exclude any amounts previously
35 determined and paid pursuant to subdivisions(d),(e),and(f) from
36 the cost of reentry.
37 (14) Nothing in this section shall be construed as authorizing
38 any city or any community choice retail load aggregator to restrict
39 the ability of retail electricity customers to obtain or receive service
97
Item 5. - 17 H B -46-
-15— AB 1912
1 from any authorized electric service provider in a manner consistent
2 with law.
3 (15) (A) The community choice aggregator shall fully inform
4 participating customers at least twice within two calendar months,
5 or 60 days, in advance of the date of commencing automatic
6 enrollment. Notifications may occur concurrently with billing
7 cycles. Following enrollment, the aggregated entity shall fully
8 inform participating customers for not less than two consecutive
9 billing cycles.Notification may include,but is not limited to,direct
10 mailings to customers, or inserts in water, sewer, or other utility
11 bills. Any notification shall inform customers of both of the
12 following:
13 (1) That they are to be automatically enrolled and that the
14 customer has the right to opt out of the community choice
15 aggregator without penalty.
16 (ii) The terms and conditions of the services offered.
17 (B) The community choice aggregator may request the
18 commission to approve and order the electrical corporation to
19 provide the notification required in subparagraph (A). If the
20 commission orders the electrical corporation to send one or more
21 of the notifications required pursuant to subparagraph (A) in the
22 electrical corporation's normally scheduled monthly billing
23 process,the electrical corporation shall be entitled to recover from
24 the community choice aggregator all reasonable incremental costs
25 it incurs related to the notification or notifications. The electrical
26 corporation shall fully cooperate with the community choice
27 aggregator in determining the feasibility and costs associated with
28 using the electrical corporation's normally scheduled monthly
29 billing process to provide one or more of the notifications required
30 pursuant to subparagraph (A).
31 (C) Each notification shall also include a mechanism by which
32 a ratepayer may opt out of community choice aggregated service.
33 The opt out may take the form of a self-addressed return postcard
34 indicating the customer's election to remain with, or return to,
35 electrical energy service provided by the electrical corporation,or
36 another straightforward means by which the customer may elect
37 to derive electrical energy service through the electrical corporation
38 providing service in the area.
39 (16) A community choice aggregator shall have an operating
40 service agreement with the electrical corporation prior to furnishing
97
HB -47- Item 5. - 18
AB 1912 —16—
1 electric service to consumers within its jurisdiction. The service
2 agreement shall include performance standards that govern the
3 business and operational relationship between the community
4 choice aggregator and the electrical corporation. The commission
5 shall ensure that any service agreement between the community
6 choice aggregator and the electrical corporation includes equitable
7 responsibilities and remedies for all parties. The parties may
8 negotiate specific terms of the service agreement, provided that
9 the service agreement is consistent with this chapter.
10 (17) The community choice aggregator shall register with the
11 commission, which may require additional information to ensure
12 compliance with basic consumer protection rules and other
13 procedural matters.
14 (18) Once the community choice aggregator's contract is signed,
15 the community choice aggregator shall notify the applicable
16 electrical corporation that community choice service will
17 commence within 30 days.
18 (19) Once notified of a community choice aggregator program,
19 the electrical corporation shall transfer all applicable accounts to
20 the new supplier within a 30-day period from the date of the close
21 of the electrical corporation's normally scheduled monthly
22 metering and billing process.
23 (20) An electrical corporation shall recover from the community
24 choice aggregator any costs reasonably attributable to the
25 community choice aggregator, as determined by the commission,
26 of implementing this section, including, but not limited to, all
27 business. and information system changes, except for
28 transaction-based costs as described in this paragraph. Any costs
29 not reasonably attributable to a community choice aggregator shall
30 be recovered from ratepayers, as determined by the commission.
31 All reasonable transaction-based costs of notices,billing,metering,
32 collections, and customer communications or other services
33 provided to an aggregator or its customers shall be recovered from
34 the aggregator or its customers on terms and at rates to be approved
35 by the commission.
36 (21) At the request and expense of any community choice
37 aggregator, electrical corporations shall install, maintain, and
38 calibrate ietering devices at mutually agreeable locations within
39 or adjacent to the community choice aggregator's political
40 boundaries. The electrical corporation shall read the metering
97
Item 5. - 19 HB -48-
-17— AB 1912
1 devices and provide the data collected to the community choice
2 aggregator at the aggregator's expense. To the extent that the
3 community choice aggregator requests a metering location that
4 would require alteration or modification of a circuit, the electrical
5 corporation shall only be required to alter or modify a circuit if
6 such alteration or modification does not compromise the safety,
7 reliability, or operational flexibility of the electrical corporation's
8 facilities. All costs incurred to modify circuits pursuant to this
9 paragraph, shall be borne by the community choice aggregator.
10 (d) (1) It is the intent of the Legislature that each retail end-use
11 customer that has purchased power from an electrical corporation
12 on or after February 1, 2001, should bear a fair share of the
I3 Department of Water Resources'electricity purchase costs,as well
14 as electricity purchase contract obligations incurred as of the
15 effective date of the act adding this section, that are recoverable
16 from electrical corporation customers in commission-approved
17 rates. It is further the intent of the Legislature to prevent any
18 shifting of recoverable costs between customers.
19 (2) The Legislature finds and declares that this subdivision is
20 consistent with the requirements of Division 27(commencing with
21 Section 80000) of the Water Code and Section 360.5 of this code,
22 and is therefore declaratory of existing law.
23 (e) A retail end-use customer that purchases electricity from a
24 community choice aggregator pursuant to this section shall pay
25 both of the following:
26 (1) A charge equivalent to the charges that would otherwise be
27 imposed on the customer by the commission to recover
28 bond-related costs pursuant to any agreement between the
29 commission and the Department of Water Resources pursuant to
30 Section 80110 of the Water Code, which charge shall be payable
31 until any obligations of the Department of Water Resources
32 pursuant to Division 27 (commencing with Section 80000) of the
33 Water Code are fully paid or otherwise discharged.
34 (2) Any additional costs of the Department of Water Resources,
35 equal to the customer's proportionate share of the Department of
36 Water Resources' estimated net unavoidable electricity purchase
37 contract costs as detennined by the commission, for the period
38 commencing with the customer's purchases of electricity from the
39 community choice aggregator, through the expiration of all then
97
HB -49- Item 5. - 20
AB 1912 —18—
1 existing electricity purchase contracts entered into by the
2 Department of Water Resources.
3 (f) A retail end-use customer purchasing electricity from a
4 community choice aggregator pursuant to this section shall
5 reimburse the electrical corporation that previously served the
6 customer for all of the following:
7 (1) The electrical corporation's unrecovered past
8 undercollections for electricity purchases,including any financing
9 costs, attributable to that customer, that the commission lawfully
10 determines may be recovered in rates.
11 (2) Any additional costs of the electrical corporation recoverable
12 in commission-approved rates, equal to the share of the electrical
13 corporation's estimated net unavoidable electricity purchase
14 contract costs attributable to the customer, as determined by the
15 commission, for the period commencing with the customer's
16 purchases of electricity from the community choice aggregator,
17 through the expiration of all then existing electricity purchase
18 contracts entered into by the electrical corporation.
19 (g) Estimated net unavoidable electricity costs paid by the
20 customers of a community choice aggregator shall be reduced by
21 the value of any benefits that remain with bundled service
22 customers, unless the customers of the community choice
23 aggregator are allocated a fair and equitable share of those benefits.
24 (h) (1) Any charges imposed pursuant to subdivision (e) shall
25 be the property of the Department of Water Resources.Any charges
26 imposed pursuant to subdivision (f) shall be the property of the
27 electrical corporation.The commission shall establish mechanisms,
28 including agreements with, or orders with respect to, electrical
29 corporations necessary to ensure that charges payable pursuant,to
30 this section shall be promptly remitted to the party entitled to
31 payment.
32 (2) Charges imposed pursuant to subdivisions (d), (e), and (f)
33 shall be nonbypassable.
34 (i) The commission shall authorize community choice
35 aggregation only if the commission imposes a cost-recovery
36 mechanism pursuant to subdivisions (d), (e), (f), and (h). Except
37 as provided by this subdivision, this section shall not alter the
38 suspension by the commission of direct purchases of electricity
39 from alternate providers other than by community choice
40 aggregators, pursuant to Section 365.1.
97
Item 5. - 21 HB -50-
-19— AB 1912
1 (jl (1) The commission shall not authorize community choice
2 aggregation until it implements a cost-recovery mechanism,
3 consistent with subdivisions (d), (e), and (f), that is applicable to
4 customers that elected to purchase electricity from an alternate
5 provider between February 1, 2001, and January 1, 2003.
6 (2) The commission shall not authorize community choice
7 aggregation until it has adopted rules for implementing community
8 choice aggregation.
9 (k) (1) Except for nonbypassable charges imposed by the
10 commission pursuant to subdivisions (d), (e), (f), and (h), and
11 programs authorized by the commission to provide broader
12 statewide or regional benefits to all customers, electric service
13 customers of a community choice aggregator shall not be required
14 to pay nonbypassable charges for goods, services, or programs
15 that do not benefit either, or where applicable, both, the customer
16 and the community choice aggregator serving the customer.
17 (2) The commission,Energy Commission,electrical corporation,
18 or third-party administrator shall administer any program funded
19 through a nonbypassable charge on a nondiscriminatory basis so
20 that the electric service customers of a community choice
21 aggregator may participate in the program on an equal basis with
22 the customers of an electrical corporation.
23 (3) Nothing in this subdivision is intended to modify,or prohibit
24 the use of,charges funding programs for the benefit of low-income
25 customers.
26 (0 (1) An electrical corporation shall not tenninate the services
27 of a community choice aggregator unless authorized by a vote of
28 the full commission. The commission shall ensure that prior to
29 authorizing a ternination of service, that the community choice
30 aggregator has been provided adequate notice and a reasonable
31 opportunity to be heard regarding any electrical corporation
32 contentions in support of termination. If the contentions made by
33 the electrical corporation in favor of termination include factual
34 claims, the community choice aggregator shall be afforded an
35 opportunity to address those claims in an evidentiary hearing.
36 (2) Notwithstanding paragraph (1), if the Independent System
37 Operator has transferred the community choice aggregator's
38 scheduling coordination responsibilities to the incumbent electrical
39 corporation,an administrative law judge or assigned commissioner,
40 after providing the aggregator with notice and an opportunity to
97
HB -51- Item 5. - 22
AB 1912 —20—
1 respond, may suspend the aggregator's service to customers
2 pending a full vote of the commission.
3 (in) Any meeting of an entity authorized to be a community
4 choice aggregator, as defined in Section 331.1, for the purpose of
5 developing, implementing, or administering a program of
6 community choice aggregation shall be conducted in the manner
7 prescribed by the Ralph M. Brown Act (Chapter 9 (commencing
8 with Section 54950) of Part 1 of Division 2 of Title 5 of the
9 Government Code).
O
97
Item 5. - 23 HB _J2_
ATTAC H M E N T #2
AMENDED IN ASSEMBLY APRIL 19, 2018
CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION
ASSEMBLY BILL No. 3162
Introduced by Assembly Member Friedman
(Coauthors: Senators Allen and Stern)
February 16, 2018
An act to amend Sections 11834.31 and 11834.34 of, to add Seeti
11-834.11to, and to repeal and add Sections 11834.09 and 11834.10 of,
the Health and Safety Code, relating to alcoholism or drug abuse.
LEGISLATIVE COUNSEL'S DIGEST
AB 3162, as amended,Friedman.Alcoholism or drug abuse reeover-y
or treatment facilities.
Existing law provides for the licensure and regulation of alcoholism
or drug abuse recovery or treatment facilities serving adults by the State
Department of Health Care Services, as prescribed. Existing law makes
a violation of these provisions punishable by a civil penalty of not less
than $25 or more than $50 per day for each violation, with additional
penalties for repeat violations, as specified.
This bill would require,
new faeility lieense, if the proposed loeafion is tin proxiffitty to an
existing f�eility that wottid result in ovefeoneentfation, as defined. The
f edit., as a..fffl.ea r`'' .4A. would require the department, at least 45
days prior to approving any application for any new facility, to post on
its Internet Web site the address of the proposed newer
Tkis facility. The bill would additionally make initial licenses issued
to providers provisional for one year and revokable for good cause, as
9s
HB -53- Item 5. - 24
AB 3162 —2—
defined. The bill would require all programs and medical services
offered or provided by a licensed alcoholism or drug abuse recovery or
treatment facility to be specified in the license application and provided
exclusively within the licensed facility on the licensed property and for
the benefit of the residents. The bill would increase the penalties for a
violation of the licensing and regulatory provisions to not less than
$1,000 or more than $15,000 per day for each violation, and increase
the additional penalties for repeat violations,as specified.The bill would
prohibit a person or entity found to be in violation of the licensing
provisions described above from applying for initial licensure for 2
years, as specified. The bill would require the department to adopt
regulations to implement these provisions on or before July 1, 2022,
and would authorize the department to issue provider bulletins, written
guidelines, or similar instructions until regulations are adopted, as
specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
I SECTION I. Section 11834.09 of the Health and Safety Code
2 is repealed.
3 SEC. 2. Section 11834.09 is added to the Health and Safety
4 Code, to read:
5 11834.09. (a) The—Pending the department's review and
6 determination that the prospective licensee can comply with this
7 chapter and regulations adopted pursuant to this chapter, the
8 department shall post notice on its Internet Web site of the address
9 of the proposed facility at least 45 days prior to the department's
10 issuance of a license or denial of the applications.
11 (b) The department may issue a single license to operate an
12 alcoholism or drug abuse recovery or treatment facility upon receipt
13 of a completed written application, fire clearance, and licensing
14 fee subject to the department's review and determination that the
15 applicant can comply with this chapter and regulations adopted
16 pursuant to this chapter.
17 (4),)
18 (c) Failure to submit a completed written application, fire
19 clearance, and payment of the required licensing fee in a timely
20 manner shall result in termination of the department's licensure
98
Item 5. - 25 HB -J4_
-3— AB 3162
1 review and shall require submission of a new application by the
2 applicant.
3 fie)
4 (d) Failure of the applicant to demonstrate the ability to comply
5 with this chapter or the regulations adopted pursuant to this chapter
6 shall result in departmental denial of the application for licensure.
7 (4)
8 (e) Initial licenses for new facilities shall be provisional for one
9 year. During the term of the provisional license, the department
10 may revoke the license for good cause. For the purposes of this
l 1 section,"good cause"means failure to operate in compliance with
12 this chapter or the regulations adopted pursuant to this chapter. A
13 licensee may not reapply for an initial license for two years
14 following a revocation of a provisional license.
15 (e)
16 0 On or before July 1, 2022, the department shall adopt
17 regulations to implement this section in accordance with the
18 Administrative Procedure Act (Chapter 3.5 (commencing with
19 Section 11340)of Part 1 of Division 3 of Title 2 of the Government
20 Code).
21 (0
22 (g) Notwithstanding the rulemaking provisions of the
23 Administrative Procedure Act, the department may, if it deems
24 appropriate, implement, interpret, or make specific this section by
25 means of provider bulletins, written guidelines, or similar
26 instructions from the department, until regulations are adopted.
27 SEC. 3. Section 11834.10 of the Health and Safety Code is
28 repealed.
29 SEC. 4. Section 11834.10 is added to the Health and Safety
30 Code, to read:
31 11834.10. (a) A licensee shall not operate an alcoholism or
32 drug abuse recovery or treatment facility beyond the conditions
33 and limitations specified on the license.All programs and services
34 offered or provided by a licensed alcoholism or drug abuse
35 recovery or treatment facility, including, but not limited to,
36 incidental medical services pursuant to Section 11834.025, shall
37 be specified in the license application and provided exclusively
38 within the licensed facility on the licensed property and for the
39 benefit of the residents.
98
I113 -55- Item 5. - 26
AB 3162 —4—
1 (b) On or before July 1, 2022, the department shall adopt
2 regulations to implement this section in accordance with the
3 Administrative Procedure Act (Chapter 3.5 (commencing with
4 Section 11340)of Part 1 of Division 3 of Title 2 of the Government
5 Code).
6 (c) Notwithstanding the rulemaking provisions of the
7 Administrative Procedure Act, the department may, if it deems
8 appropriate,implement, interpret, or make specific this section by
9 means of provider bulletins, written guidelines, or similar
10 instructions from the department, until regulations are adopted.
11 SEG. 5. Seetion 11834.11 is added to the Health and Safety
12 rode ead
13 11834.11. (a) For any lieensing appheation submitted on oft
14 after 4anttary 1,2019,the department shall deny an applieation Fo
15
16
17 area zoned fit:residential ttse.
18 "means that if
19 tiew Heense is issued, two or more aleoholism of dfttg abuse
20
21 feet or less,
22
23 .
24
25 subjeet to the tefms and eonditions of theif existing lieettses.
26 Expansion or intensifieation of lieensed faeilities shall not be
27 allowed unless the faeility eonf-oftits with the fe4ttifemeHts of this
28 fir.
29 " ' "
30
31 laws on of bef5fe Beeenber 1, 204 8,boated within 300 feet or
32 less of another lieensed f-aeility, as measured ftom the neaf
33 propefty lines on whieh the existing faeilities afe loeated,
34 as they are in eontinuotts opefation with no lapse in lieetisttfe7.
35 (d) At least 45 days Prior to approvtng any appheation
36 new f�eility, the department shall post on its intefnet Web site the
37 addfess of the proposed new f�eility.
38 , the depaftment shall a4ept
39 regttlations to implement this seetton in aeeordanee with the
40
98
Item 5. - 27 KB _56_
-5— AB 3162
1
2 Eon}
3
4 Administrative Pfoeedufe Aet, the depaftment mar, if it deems
5 e, implement, interpfet, or make speeifie this seetioft-by
6
7
8 SEC. 6:-
9 SEC. 5. Section l]834.31 of the Health and Safety Code is
10 amended to read:
11 11834.31. If a facility is alleged to be in violation of Section
12 11834.30, the department shall conduct a site visit to investigate
13 the allegation.If the department's employee or agent finds evidence
14 that the facility is providing alcoholism or drug abuse recovery,
15 treatment,or detoxification services without a license,the employee
16 or agent shall take the following actions:
17 (a) Submit the findings of the investigation to the department.
18 (b) Upon departmental authorization, issue a written notice to
19 the facility stating that the facility is operating in violation of
20 Section 11834.30. The notice shall include all of the following:
21 (1) The date by which the facility shall cease providing services.
22 (2) Notice that the department will assess against the facility a
23 civil penalty s€penalty, as determined by the department, not to
24 exceed two thousand dollars ($2,000) per day for every day the
25 facility continues to provide services beyond the date specified in
26 the notice.
27 (3) Notice that the case will be referred for civil proceedings
28 pursuant to Section 11834.32 in the event the facility continues to
29 provide services beyond the date specified in the notice.
30 (c) Inform the facility of the licensing requirements of this
31 chapter.
32 (d) A person or entity found to be in violation of Section
33 11834.30 shall be prohibited from applying for initial licensure
34 for a period of two years from the date of the notice specified in
35 subdivision (b).
36 SEC. 7.
37 SEC. 6. Section 11834.34 of the Health and Safety Code is
38 amended to read:
39 11834.34. (a) In addition to the penalties of suspension or
40 revocation of a license issued under this chapter, the department
98
HB -57- Item 5. - 28
AB 3162 —6—
1 may also levy a civil penalty for violation of this chapter or the
2 regulations adopted pursuant to this chapter.
3 (1) The amount of the civil penny penalty, as determined by
4 the department, shall not be less than one thousand dollars($1,000)
5 or more than fifteen thousand dollars ($15,000) per day for each
6 violation, except where the nature or seriousness of the violation
7 or the frequency of the violation warrants a higher penalty or an
8 immediate civil penalty assessment, or both, as determined by the
9 department. In no event shall a civil penalty assessment exceed
10 fifteen thousand dollars ($15,000) per day.
11 (2) A licensee that is cited for repeating the same violation
12 within 24 months of the first violation is subject to an immediate
13 civil penalty o€penalty, as determined by the department, not to
14 exceed one thousand five hundred dollars ($1,500) and one
15 thousand dollars($1,000)for each day the violation continues until
16 the deficiency is corrected.
17 (3) A licensee that has been assessed a civil penalty pursuant
18 to paragraph (2)that repeats the same violation within 24 months
19 of the violation subject to paragraph(2)is subject to an immediate
20 civil penaltyo€penalty, as determined by the department, not to
21 exceed two thousand dollars ($2,000) for each day the violation
22 continues until the deficiency is corrected.
23 (b) Prior to the assessment of any civil penalty, the department
24 shall provide the licensee with notice requiring the licensee to
25 correct the deficiency within the period of time specified in the
26 notice.
O
98
Item 5. - 29 xB _58_
ATTACHMENT #3
AMENDED IN ASSEMBLY APRIL 30, 2018
AMENDED IN ASSEMBLY APRIL 16, 2018
AMENDED IN ASSEMBLY MARCH 19, 2018
CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION
ASSEMBLY BILL No. 3178
Introduced by Assembly Member Rubio
February 16, 2018
An act to amend Section 1�80 and Section 41825 of, and to add �
and repeal Section 41780.02 of,the Public Resources Code, relating to
solid waste.
LEGISLATIVE COUNSEL'S DIGEST
AB 3178, as amended, Rubio. Integrated waste management plans:
source reduction and recycling element: diversion requirements.
The California Integrated Waste Management Act of 1989, which is
administered by the Department of Resources Recycling and Recovery,
establishes an integrated waste management program. Existing law
requires each city, county, and regional agency, if any, to develop a
source reduction and recycling element of an integrated waste
ianagement plan. The act requires the source reduction and recycling
element to divert from disposal 50% of all solid waste subject to the
element through source reduction,recycling, and composting activities,
with specified exceptions.
This bill would make findings, ineluding, among othefs, that the
stofage of feeyelable materials in amounts that exeeed the design
permitted eapaeity of a solid waste f-aeility ean pose a threat
to pttbuliie health and safety. The bill, notwithstanding the
96
HB -59- Item 5. - 30
AB 3178 —2—
within its design kit pennit storage litnitst.
Existing law requires a city, county, or regional agency to submit an
annual report to the department summarizing its progress in reducing
solid waste. Existing law requires the department to review a
jurisdiction's compliance with the diversion requirements every 2 or 4
years, as specified, and authorizes the department to issue an order of
compliance if the department finds, after considering specified factors,
the jurisdiction failed to make a good faith effort to implement its source
reduction and recycling element.
This bill would make findings, including, among others, that under
China's National Sword import policy, many recyclable materials are
now banned and may no longer be imported into that country, which
has had a profound impact on California efforts to meet state recycling
objectives. The bill would require the department, when evaluating a
jurisdiction's good faiths effort to implement a diversion program,
to also consider whether China's National Sword importpolicy caused
the absence or loss of a market for recyclable materials that necessitated
the disposal of those materials as a temporary measure to avoid a public
health threat, as specified. The bill would also require the department
to consider the extent to which the jurisdiction has made efforts to
reduce contamination and improve the quality of recycled materials
and the extent to which the lack of an available market for one or more
types of recyclable materials, which prevented the jurisdiction from
fully implementing its diversion programs, was the result of
circumstances beyond the reasonable control of the jurisdiction.
department to tmpose administrative eivil penalties upon tha
j erg
being subjeet to an admilliat—i— —.41 penalty ifthe need to dispose
This bill would pfohibit, until january 1, 20-23, a jurisdietion From
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
96
I
Item 5. - 31 H B -60-
-3— AB 3178
The people of the State of California do enact as follows:
1 Sir-- ION 1. Section 41780 of the Pahl., Reno,._,,.s Code
is
2 amended to fead.:
3 '
4 element shall inelude an implementation sehedttle that shows bot-h
5
6 ,
7 ,
8 .
9 ,
10 element, the
11 jttrisdietion shall divert 50 pereent of all solid waste on and afte
12 , and
13 g aetivities.
14
15 implementing sottfee feduetion, reeyeling, and eompostittg
16
17 sFtc. 2.
18 SECTION]. Section 41780.02 is added to the Public Resources
19 Code, to read:
20 41780.02. (a) The Legislature finds and declares all of the
21 following:
22 (1) The existence of sustainable and resilient markets able to
23 receive material that has been separated and processed for reuse
24 is essential to any successful recycling or composting system.
25 (2) Since the inception of the California Integrated Waste
26 Management Act of 1989,California has relied almost exclusively
27 on foreign markets to accept most of the recyclable materials that
28 are recovered in the state. Domestic markets for these materials
29 have not emerged. The department reports that more than 60
30 percent of California's recyclable materials were exported to China
31 in 2016.
32 (3) The need to develop reliable domestic markets for recyclable
33 materials is now more acute than ever before.The National Sword
34 import policy implemented by China in 2018 has had a profound
35 impact on California efforts, and on the efforts of other states, to
36 meet applicable state recycling objectives.
37 (4) Under China's new policy, many recyclable materials are
38 now banned and may no longer be imported into that country.
96
HB -61- Item 5. - 32
AB 3178 —4—
1 Other recyclable materials are now required, as a condition of
2 importation into China, to meet strict new contamination limits
3 that, in certain cases, may be unachievable.
4 (5) T4te--As of the effective date of'this section, the network of
5 recycling facilities that was developed to meet California's waste
6 diversion requirements is now being overwhelmed. These facilities
7 are unable to move and market all of the processed recyclables
8 they receive. Most have resorted to stockpiling recyclable materials
9 as they seek to identify alternatives. Many are about to reach their
10 storage capacity.
11 (6) The state must assert a leadership role and take the steps
12 necessary to reduce its traditional reliance on volatile foreign
13 markets for its recyclable materials. In the interim, it must also
14 consider the potential public health risk associated with recyclable
15 material storage that exceeds the design or pennitted capacity of
16 a recycling facility.
17 (7) The storage of recyclable materials in amounts that exceed
18 the design capacity or permitted capacity of a solid waste facility
19 can pose a threat to public health and safety.
20
21 4 4 780,
22 thfottgh its authofized reeyeling agent,f6f the disposal ofreeyelable
23
24 .
25
27 '
28 to find a market for the matefial, the jttfisdietion shall not inetur
29
30 qt1antity of solid waste diverted by the jttrisdietion-.
31 (1d)
32 (b) This section shall remain in effect only until January 1,2023,
33 and as of that date is repealed.
34 SEC. 3
35 SEC. 2. Section 41825 of the Public Resources Code, as
36 amended by Section 1 of Chapter 155 of the Statutes of 2017, is
37 amended to read:
38 41825. (a) Using the information in the report submitted to
39 the department by the jurisdiction pursuant to Section 41821 and
40 any other relevant information,the department shall make a finding
96
Item 5. - 33 HB -62-
-5— AB 3178
1 whether each jurisdiction was in compliance with Section 41780
2 for calendar year 2006 and shall review a jurisdiction's compliance
3 with Section 41780 in accordance with the following schedule:
4 (1) If the department makes a finding that the jurisdiction was
5 in compliance with Section 41780 for calendar year 2006, the
6 department shall review, commencing January 1,2012,and at least
7 once every four years thereafter, whether the jurisdiction has
8 implemented its source reduction and recycling element and
9 household hazardous waste element.
10 (2) If the department makes a finding that the jurisdiction made
11 a good faith effort to implement its source reduction and recycling
12 element and household hazardous waste element, the department
13 shall review, commencing January 1,2010,and at least once every
14 two years thereafter, whether the jurisdiction has implemented its
15 source reduction and recycling element and household hazardous
16 waste element.
17 (3) If the department makes a finding that the jurisdiction was
18 not in compliance with Section 41780 for calendar year 2006 or
19 for any subsequent calendar year, the department shall review,
20 commencing January 1, 2010, and at least once every two years
21 thereafter, whether the jurisdiction has implemented its source
22 reduction and recycling element and household hazardous waste
23 element.
24 (4) If,after determining that a jurisdiction is subject to paragraph
25 (2), or, if,after determining that a jurisdiction is not in compliance
26 with Section 41780 and is subject to paragraph(3),the department
27 subsequently detenmines that the jurisdiction has come into
28 compliance with Section 41780, the department shall review, at
29 least once every four years, whether the jurisdiction has
30 implemented its source reduction and recycling element and
31 household hazardous waste element in the same manner as a
32 jurisdiction that is subject to paragraph(1).
33 (5) If,after determining that a jurisdiction is in compliance with
34 Section 41780 and is subject to paragraph (1), the department
35 subsequently determines that the jurisdiction is not in compliance
36 with Section 41780, the department shall review, at least once
37 every two years, whether the jurisdiction has implemented its
38 source reduction and recycling element and household hazardous
39 waste element in the same manner as a jurisdiction that is subject
40 to paragraph (2) or (3).
96
HB -63- Item 5. - 34
AB 3178 —6—
1 (b) In addition to the requirements of subdivision (a), the
2 department may review whether a jurisdiction is in compliance
3 with Section 41780 in accordance with the requirements of this
4 section at any time that the department receives information that
5 indicates the jurisdiction may not be making a good faith effort to
6 implement its source reduction and recycling element and
7 household hazardous waste element.
8 (c) (1) Before issuing a compliance order pursuant to
9 subdivision (d), the department shall confer with the jurisdiction
10 regarding conditions relating to the proposed order of compliance,
l 1 with a first meeting occurring not less than 60 days before issuing
12 a notice of intent to issue an order of compliance.
13 (2) The department shall issue a notice of intent to issue an order
14 of compliance not less than 30 days before the department holds
15 a hearing to issue the notice of compliance. The notice of intent
16 shall specify all of the following:
17 (A) The proposed basis for issuing an order of compliance.
18 (B) The proposed actions the department recommends are
19 necessary for the jurisdiction to complete to implement its source
20 reduction and recycling element or household hazardous waste
21 element.
22 (C) The proposed recommendations to the department.
23 (3) The department shall consider any information provided
24 pursuant to subdivision (c) of Section 41821 if the proposed
25 issuance of an order of compliance involves changes to a
26 jurisdiction's calculation of annual disposal.
27 (d) (1) If, after holding a public hearing, which, to the extent
28 possible, shall be held in the local or regional agency's jurisdiction,
29 the department finds that a jurisdiction has failed to make a good
30 faith effort to implement its source reduction and recycling element
31 or its household hazardous waste element, the department shall
32 issue an order of compliance with a specific schedule for achieving
33 compliance.
34 (2) The compliance order shall include those conditions that the
35 department determines to be necessary for the jurisdiction to
36 implement its diversion programs.
37 (3) In addition to considering the good faith efforts of a
38 jurisdiction, as specified in subdivision (e), to implement a
39 diversion program, the department shall consider-loath all of the
96
Item 5. - 35 1f13 _64_
-7— AB 3178
1 following factors in determining whether or not to issue a
2 compliance order:
3 (A) Whether an exceptional growth rate may have affected
4 compliance.
5 (B) Whether China's National Sword iniportpolicy caused the
6 absence or loss of a market for recyclable materials diverted from
7 solid waste facilities that necessitated the disposal of those
8 materials as a temporary measure to avoid a public health threat
9 associated with storing recyclable materials in amounts that exceed
10 the permitted or design capacity of a solid waste facility.
11 (C) Other information that the jurisdiction may provide that
12 indicates the effectiveness of the jurisdiction's programs, such as
13 disposal characterization studies or other jurisdiction specific
14 information.
15 (e) For purposes of making a determination pursuant to this
16 section whether a jurisdiction has failed to make a good faith effort
17 to implement its source reduction and recycling element or its
18 household hazardous waste element,the department shall consider
19 all of the following criteria:
20 (1) For the purposes of this section, "good faith effort" means
21 all reasonable and feasible efforts by a jurisdiction to implement
22 those programs or activities identified in its source reduction and
23 recycling element or household hazardous waste element, or
24 alternative programs or activities that achieve the same or similar
25 results.
26 (2) For purposes of this section, "good faith effort" may also
27 include the evaluation by a jurisdiction of improved technology
28 for the handling and management of solid waste that would reduce
29 costs,improve efficiency in the collection,processing,or marketing
30 of recyclable materials or yard waste, and enhance the ability of
31 the jurisdiction to adequately address all sources of significant
32 disposal, the submission by the jurisdiction of a compliance
33 schedule, and the undertaking of all other reasonable and feasible
34 efforts to implement the programs identified in the jurisdiction's
35 source reduction and recycling element or household hazardous
36 waste element.
37 (3) In determining whether a jurisdiction has made a good faith
38 effort, the department shall consider the enforcement criteria
39 included in its enforcement policy, as adopted on April 25, 1995,
40 or as subsequently amended.
96
H13 .65_ Item 5. - 36
AB 3178
1 (4) The department shall consider all of the following when
2 considering whether a jurisdiction has made a good faith effort to
3 implement its source reduction and recycling element or its
4 household hazardous waste element:
5 (A) Natural disasters.
6 (B) Budgetary conditions within a jurisdiction that could not
7 be remedied by the imposition or adjustment of solid waste fees.
8 (C) Work stoppages that directly prevent a jurisdiction from
9 implementing its source reduction and recycling element or
10 household hazardous waste element.
ll (D) The impact of the failure of federal, state, and other local
12 agencies located within the jurisdiction to implement source
13 reduction and recycling programs in the jurisdiction.
14 (E) The extent to which the jurisdiction has implemented
15 additional source reduction, recycling, and composting activities.
16 (F) The extent to which the jurisdiction has made program
17 implementation choices driven by considerations related to other
18 environmental issues, including climate change.
19 (G) The extent to which the jurisdiction has made efforts to
20 reduce contamination and improve the quality of recycled
21 materials.
22 (G)
23 (H) Whether the jurisdiction has provided information to the
24 department concerning whether construction and demolition waste
25 material is at least a moderately significant portion of the waste
26 stream, and, if so, whether the local jurisdiction has adopted an
27 ordinance for diversion of construction and demolition waste
28 materials from solid waste disposal facilities,has adopted a model
29 ordinance pursuant to subdivision (a) of Section 42912 for
30 diversion of construction and demolition waste materials from
31 solid waste disposal facilities, or has implemented another program
32 to encourage or require diversion of construction and demolition
33 waste materials from solid waste disposal facilities.
34 �H)
35 (I) The extent to which the jurisdiction has implemented
36 programs to comply with Section 41780 and to maintain its per
37 capita disposal rate.
38 (4)
39 (J) The extent to which the lack of an available market for one
40 or more types of recyclable materials is the result of circumstances
96
Item 5. - 37 HB -66-
—9— AB 3178
1 beyond the reasonable control of the jurisdiction, and prevented
2 the jurisdiction from fully implementing its diversion programs.
3 (5) In making a detennination whether a jurisdiction has made
4 a good faith effort, pursuant to this section, the department may
5 consider a jurisdiction's per capita disposal rate as a factor in
6 determining whether the jurisdiction adequately implemented its
7 diversion programs, The department shall not consider a
8 jurisdiction's per capita disposal rate to be determinative as to
9 whether the jurisdiction has made a good faith effort to implement
10 its source reduction and recycling element or its household
1 1 hazardous waste element.
12 (0 This section shall remain in effect only until January 1,2022,
13 and as of that date is repealed, unless a later enacted statute, that
14 is enacted before January 1, 2022, deletes or extends that date.
15 SEC. 4.
16 SEC. 3. Section 41825 of the Public Resources Code, as
17 amended by Section 2 of Chapter 155 of the Statutes of 2017, is
18 amended to read:
19 41825. (a) At least once every two years,the department shall
20 review each jurisdiction's source reduction and recycling element
21 and household hazardous waste element for compliance with
22 Section 41780.
23 (b) In addition to the requirements of subdivision (a), the
24 department may review whether a jurisdiction is in compliance
25 with Section 41780 in accordance with the requirements of this
26 section at any time that the department receives information that
27 indicates the jurisdiction may not be making a good faith effort to
28 implement its source reduction and recycling element and
29 household hazardous waste element.
30 (c) (1) Before issuing a compliance order pursuant to
31 subdivision (d), the department shall confer with the jurisdiction
32 regarding conditions relating to the proposed order of compliance,
33 with a first meeting occurring not less than 60 days before issuing
34 a notice of intent to issue an order of compliance.
35 (2) The department shall issue a notice of intent to issue an order
36 of compliance not less than 30 days before the department holds
37 a hearing to issue the notice of compliance. The notice of intent
38 shall specify all of the following:
39 (A) The proposed basis for issuing an order of compliance.
96
1413 -67- Item 5. - 38
AB 3178 —to—
(B) The proposed actions the department recommends are
2 necessary for the jurisdiction to complete the implementation of
3 its source reduction and recycling element or household hazardous
4 waste element.
5 (C) The proposed recommendations to the department.
6 (3) The department shall consider any information provided
7 pursuant to subdivision (c) of Section 41821, if the proposed
8 issuance of an order of compliance involves changes to a
9 jurisdiction's calculation of annual disposal.
10 (d) (1) If, after holding a public hearing, which, to the extent
11 possible, shall be held in the local or regional agency's jurisdiction,
12 the department finds that a jurisdiction has failed to make a good
13 faith effort to implement its source reduction and recycling element
14 or its household hazardous waste element, the department shall
15 issue an order of compliance with a specific schedule for achieving
16 compliance.
17 (2) The compliance order shall include those conditions that the
18 department determines to be necessary for the jurisdiction to
19 implement its diversion programs.
20 (3) In addition to considering the good faith efforts of a
21 jurisdiction, as specified in subdivision (e), to implement a
22 diversion program, the department shall consider all of the
23 following factors in determining whether or not to issue a
24 compliance order:
25 (A) Whether an exceptional growth rate may have affected
26 compliance.
27 (B) Whether China's National Sword import policy caused the
28 absence or loss of a market for recyclable materials diverted from
29 solid waste facilities that necessitated the disposal of those
30 materials as a temporary measure to avoid a public health threat
31 associated with storing recyclable materials in amounts that exceed
32 the pennitted or design capacity of a solid waste facility.
33 (C) Other information that the jurisdiction may provide that
34 indicates the effectiveness of the jurisdiction's programs, such as
35 disposal characterization studies or other jurisdiction specific
36 information.
37 (e) For purposes of making a determination pursuant to this
38 section as to whether a jurisdiction has failed to make a good faith
39 effort to implement its source reduction and recycling element or
96
Item 5. - 39 HB -68-
-11 — AB 3178
1 its household hazardous waste element, the department shall
2 consider all of the following criteria:
3 (1) For the purposes of this section, "good faith effort" means
4 all reasonable and feasible efforts by a jurisdiction to implement
5 those programs or activities identified in its source reduction and
6 recycling element or household hazardous waste element, or
7 alternative programs or activities that achieve the same or similar
8 results.
9 (2) For purposes of this section, "good faith effort" may also
10 include the evaluation by a jurisdiction of improved technology
1 1 for the handling and management of solid waste that would reduce
12 costs,improve efficiency in the collection,processing,or marketing
13 of recyclable materials or yard waste, and enhance the ability of
14 the jurisdiction to adequately address all sources of significant
15 disposal, the submission by the jurisdiction of a compliance
16 schedule, and the undertaking of all other reasonable and feasible
17 efforts to implement the programs identified in the jurisdiction's
18 source reduction and recycling element or household hazardous
19 waste element.
20 (3) In determining whether a jurisdiction has made a good faith
21 effort, the department shall also consider the enforcement criteria
22 included in its enforcement policy, as adopted on April 25, 1995,
23 or as subsequently amended.
24 (4) The department shall consider all of the following when
25 considering whether a jurisdiction has made a good faith effort to
26 implement its source reduction and recycling element or its
27 household hazardous waste element:
28 (A) Natural disasters.
29 (B) Budgetary conditions within a jurisdiction that could not
30 be remedied by the imposition or adjustment of solid waste fees.
31 (C) Work stoppages that directly prevent a jurisdiction from
32 implementing its source reduction and recycling element or
33 household hazardous waste element.
34 (D) The impact of the failure of federal, state, and other local
35 agencies located within the jurisdiction to implement source
36 reduction and recycling programs in the jurisdiction.
37 (E) The extent to which the jurisdiction has implemented
38 additional source reduction,recycling, and composting activities.
96
HB -69- Item 5. - 40
AB 3178 —12-
1 (F) The extent to which the jurisdiction has made program
2 implementation choices driven by considerations related to other
3 environmental issues, including climate change.
4 (G) The extent to which the jurisdiction has made efforts to
5 reduce contamination and improve the quality of recycled
6 materials.
7 fG�
8 (H) Whether the jurisdiction has provided information to the
9 department concerning whether construction and demolition waste
10 material is at least a moderately significant portion of the waste
11 stream, and, if so, whether the local jurisdiction has adopted an
12 ordinance for diversion of construction and demolition waste
13 materials from solid waste disposal facilities,has adopted a model
14 ordinance pursuant to subdivision (a) of Section 42912 for
15 diversion of construction and demolition waste materials from
16 solid waste disposal facilities,or has implemented anotherprogram
17 to encourage or require diversion of construction and demolition
18 waste materials from solid waste disposal facilities.
19 (14)
20 (1) The extent to which the jurisdiction has implemented
21 programs to comply with Section 41780 and to maintain its per
22 capita disposal rate.
23 ( )
24 Q) The extent to which the lack of an available market for one
25 or more types of recyclable materials is the result of circumstances
26 beyond the reasonable control of the jurisdiction, and prevented
27 the jurisdiction from fully implementing its diversion programs.
28 (5) In making a determination whether a jurisdiction has made
29 a good faith effort, pursuant to this section, the department may
30 consider a jurisdiction's per capita disposal rate as a factor in
31 determining whether the jurisdiction adequately implemented its
32 diversion programs. The department shall not consider a
33 jurisdiction's per capita disposal rate to be determinative as to
34 whether the jurisdiction has made a good faith effort to implement
35 its source reduction and recycling element or its household
36 hazardous waste element.
37 (f) This section shall become operative on January 1, 2022.
O
96
Item 5. - 41 HB -70-
ATTAC H M E N T #4
AMENDED IN ASSEMBLY MAY 1, 2018
AMENDED IN ASSEMBLY APRIL 18, 2018
AMENDED IN ASSEMBLY APRIL 11, 2018
AMENDED IN ASSEMBLY APRIL 2, 2018
CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION
ASSEMBLY BILL No. 3232
Introduced by Assembly Member Friedman
(Coauthors: Assembly Members Bloom, Chin, and Mark Stone)
(Coauthors: Senators Allen and Stern)
February 16, 2018
An act to add Section 25403 to the Public Resources Code, relating
to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 3232, as amended, Friedman. Zero-emissions buildings and
sources of heat energy.
The Warren-Alquist State Energy Resources Conservation and
Development Act requires the State Energy Resources Conservation
and Development Commission to adopt building design and construction
standards and energy and water conservation standards for new
residential and nonresidential buildings to reduce the wasteful,
uneconomic, inefficient, or unnecessary consumption of energy,
including energy associated with the use of water.The act requires those
standards to be cost effective when taken in their entirety and when
amortized over the economic life of the structure compared with historic
practice. The act requires the commission to adopt standards for a
program of electrical load management for each utility service area.
9s
HB -7 1- Item 5. - 42
AB 3232 —2—
This bill would require the commission, by.February 1, 2019, to open
a proceeding to consider load management standards and strategies
needed to optimize building energy use in a manner that reduces the
emissions ofgreenhouse gases. The bill would require the commission,
by January 1, 2020, to develop a plan to aehieve the goal t assess
the potential for the state to reduce the emissions of greenhouse gases
from the state's residential and commercial building stock-shft44)e
redtteed by at least 40%below 1990 levels by January 1, 2030. The bill
would require this assessment to include consideration of
cost-effective strategies to reduce emissions from space heating and
water heating in both new and existing residential and commercial
buildings,as specified.The bill-vvottld feqttire the eotntnission to revise
building enefgy use in a manner that reduees the emiss --Of
gfeenhottse gases. The bill would require the commission to include in
the 2021 edition of the integrated energy policy report and all subsequent
integrated energy policy reports a progress report on
above stated goals, reeonnnendations to the Legislature on
remedy any perfi)fmanee gaps in aehieving those goals, and the
emissions of greenhouse gases associated with the supply of energy to
residential and commercial buildings.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. (a) The Legislature finds and declares all of the
2 following:
3 (1) Chapter 249 of the Statutes of 2016 directs the state to
4 achieve a reduction in the emissions of greenhouse gases of 40
5 percent below 1990 levels by 2030.
6 (2) Buildings are responsible for 25
7 percent of all emissions of greenhouse gases.
8 (3) Direct emissions from the combustion of fossil fuels in
9 buildings, primarily for space and water heating, accounts for 10
10 percent of all emissions of greenhouse gases in California.
11 (4) Approximately half of all energy used in buildings in
12 California is in the form of on-site combustion of fossil fuels.
13 (5) The state has many ambitious energy efficiency building
14 goals. Chapter 470 of the Statutes of 2009 requires the State Energy
95
Item 5. - 43 1-I13 _77_
—3— AB 3232
1 Resources Conservation and Development Commission to establish
2 a comprehensive program to achieve greater energy savings in the
3 state's existing residential and nonresidential building stock. The
4 Clean Energy and Pollution Reduction Act of 2015 (Chapter 547
5 of the Statutes of 2015)establishes a goal of achieving a cumulative
6 doubling of statewide energy efficiency savings in electricity and
7 natural gas final end uses of retail customers by January 1, 2030.
8 However, the state has not ts` assessed the potential for
9 reducing total greenhouse gas emission fe4uetion goals f-or
10 bttildings. emissions from buildings by an amount that is consistent
11 with the state's greenhouse gas reduction target of 40 percent
12 below 1990 levels by 2030.
13 (6) Decarbonizing California's buildings is essential to achieve �
14 the state's greenhouse gas emission reduction goals at the lowest
15 possible cost.
16 (b) It is the intent of the Legislature to achieve significant
17 reductions in the emissions of greenhouse gases-in by the state's
18 residential and commercial building stock by January 1, 2030.
19 SEC. 2. Section 25403 is added to the Public Resources Code,
20 to read:
21 25403. (a) The commission shall do
22 all both of the following:
23 (1) By February 1, 2019, open a proceeding to consider load �
24 management standards and strategies needed to optimize building
25 energy use in a manner that reduces the emissions of greenhouse
26 gases.
27 (1) Develop a plan to aehieve the goal efred__*-_�;
28 (2) By January 1, 2020, assess the potential for the state to
29 reduce the emissions of greenhouse gases by the state's residential
30 and commercial building stock by at least 40 percent below the
31 1990 levels by January 1, 2030. Thee assessment shall include
32 consideration of cost-effective strategies to reduce emissions from
33 space heating and water heating in both new and existing
34 residential and commercial buildings. In developing the-Platt,
35 assessment, the commission shall consider, and ensure that these
36 strategies account for, the unique challenges associated with
37 reducing emissions from low-income housing,multifamilyhousing,
38 and high-rise buildings. The commission shall also evaluate the
39 potential impacts of the strategies, including on customer costs
40 and grid reliability.
95
HB _73_ Item 5. - 44
AB 3232 —4—
1
2 ensure appropriate standards and tineentwes -exist
3 bttilding energy use it that fedttees the emissions o
4 greenhouse
5 (b) Beginning with the integrated energy policy report due on
6 November 1, 2021, and in all subsequent integrated energy policy
7 reports, the commission shall include in the integrated energy
8 policy report a report on tits progress toward aehieving the go
9 , feeommendations to
10
11 the emissions of greenhouse gases
12 associated with the supply of energy to residential and commercial
13 buildings, by fuel type. The commission shall make this
14 inforination publicly available on its Internet Web site.
O
95
Item 5. - 45 HB _74_
i
it
UMMOMW
� o RiSC
Disaster Readiness for SAFER Communities
FACT SHEET
Budget Augmentation Request of$100 Million
For Expanding Mutual Aid System
A coalition of California's fire service—including fire chiefs and firefighters at the local and state level —
is requesting a$100 million augmentation to the FY 2018-19 State Budget to enable the Governor's
Office of Emergency Services (OES) to accomplish the following goals:
• Reimburse local governments for the cost of pre-positioning firefighters and equipment in
advance of identifiable risks under the California Mutual Aid System
• Upgrade emergency communications and resource dispatching capabilities
In 2017, California saw the largest, most destructive and costliest wildfires in the state's history. They
were caused by extreme weather conditions attributable to climate change. As the threat of catastrophic
wildfires becomes more severe, the ability to have firefighters, apparatus and equipment available and
ready to respond immediately to fire threats is essential to preventing the loss of life and property.
The state budget proposal to spend an additional $100 million for disaster readiness is supported by
recommendations made in 2003 by the Governor's Blue Ribbon Commission, which was convened in the
wake of major wildfires in San Diego, to enhance local firefighting capabilities. Their recommendations
have been updated several times since then, but they have consistently included proposals to modernize
the Mutual Aid System, giving OES and local governments the resources and capability needed to enable
first responders to aggressively attack emerging fires and other threats in the first minutes and hours of
their destructive paths.
California's Mutual Aid System was created in 1950 to allow local fire agencies to come to the aid of
surrounding jurisdictions when fires and other disaster threats are too large for local resources to handle
effectively. The system, managed by OES and cited as a national model, has proven to be an effective and
efficient means of fighting fires and responding to other large-scale disasters. But it was designed
primarily as a reactive response to disasters. This proposed budget augmentation would expand the
system's capabilities to be proactive as well.
The mega fires of 2017 brought to light the need for more resources in the face of more extreme weather
conditions. More than 35,600 mutual aid requests were made last year, of which 11,000 (31 percent)went
unfilled. The Mutual Aid System, as effective as it has been,needs to be proactive as well as reactive.
Instead of waiting for an incident to occur and then organizing resources, changing conditions mandate
that firefighting resources be placed on standby where and when weather conditions pose the greatest
risks of fire and other natural disasters. This policy solution is called"pre-positioning."
Pre-positioning provides the best—and in many instances the only—means of attacking fires with enough
equipment and staffing in the initial minutes and hours necessary to prevent them from spreading and
becoming catastrophic events.
www.d-risc.org I info@d-risc.org
California Fire Chiefs Association California Professional Firefighters California State Firefighters Association
Fire Districts Association of California FIRESCOPE I L HB -5-alifornia Cities I Metropolitan Fire Chiefs of Item 5. — 46
It is important to note two facts:
• Local governments may be reimbursed by the state and federal government for responding to
major events. Approximately 80 percent of the resources deployed for disaster response are
provided by local government fire agencies.
• In September 2017, $25 million was appropriated for OES to reimburse local government fire
agencies to assist surrounding fire departments for pre-positioning under the Mutual Aid System.
By this spring, a mechanism is expected to be in place for the first time to reimburse local
governments for pre-positioning.
Gov. Brown has proposed another $25 million effective July 1, 2018 for the purchase of 106 fire engines
identified as a critical need by OES, including $1.4 million for fleet maintenance and staff support. These
engines will meet a critical need, considering the fact that 55 percent of mutual aid request for engines
went unfilled last year.
FY 2018-2019 budget request:
• $87 million would reimburse local governments for costs to pre-position resources in high-risk
areas prior to the onset of extreme weather conditions (wind, heavy rain and"red flag" fire
conditions). These funds would allow for additional strike teams to quickly attack fires in high-
risk areas to prevent them from becoming catastrophic fires. Strike teams are comprised of five
(5) engines, 20 firefighters and one(1) strike team leader. Mobilizing a strike team costs local
governments approximately $50,000 per day.
• $13 million would pay for improved communications technologies to allow more efficient and
effective resource deployment.
o Local government engines would be equipped with a GPS-linked communications system
called Automatic Vehicle Location(AVL), a system already being installed in state-owned
equipment operated by both OES and the California Department of Forestry and Fire
Protection. Use of the AVL system ensures the efficient mutual aid dispatching of strike
teams closest to a disaster.
o The Resource Ordering and Status System would be replaced with a state-of-the-art system
for requesting and managing resources for these large-scale emergencies.
o Funds would be available to bring in additional OES and local government personnel to staff
regional dispatch centers.
Funds would go toward improved technologies for alerting individuals and communities of approaching
threats.
Item 5. - 47 HB -76-