School Energy Efficiency Stimulus Program.

(1) Existing law requires the Public Utilities Commission (PUC) to require those electrical corporations with 250,000 or more customer accounts in the state, and those gas corporations with 400,000 or more customer accounts in the state, to fund as part of their energy efficiency portfolios the joint School Energy Efficiency Stimulus Program, which consists of: (A) the School Reopening Ventilation and Energy Efficiency Verification and Repair Program (SRVEVR Program) to award grants to local educational agencies to reopen schools with functional ventilation systems that are tested, adjusted, and, if necessary or cost effective, repaired, upgraded, or replaced to increase efficiency and performance; and (B) the School Noncompliant Plumbing Fixture and Appliance Program (SNPFA Program) to provide grants to state agencies and local educational agencies to replace noncompliant plumbing fixtures, as defined, and noncompliant appliances, as defined, that fail to meet water efficiency standards and waste potable water and the energy used to convey that water with water-conserving plumbing fixtures and appliances. Existing law requires the PUC to require those utilities to fund the School Energy Efficiency Stimulus Program by allocating their energy efficiency budgets for program years 2021, 2022, and 2023 in specified amounts and requires all funds allocated to be spent or returned to each utility by December 1, 2026. Existing law requires, for each program year, that 75% of these moneys are allocated to the SRVEVR Program and that 25% of these moneys are allocated to the SNPFA Program. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to ensure that moneys from each utility for the School Energy Efficiency Stimulus Program are used for projects located in the service territory of that utility from which the moneys are received and authorizes the Energy Commission to set application and encumbrance deadlines to ensure that the reversion of funds to each utility occurs by December 1, 2026. Existing law repeals the School Energy Efficiency Stimulus Program on January 1, 2027. This bill would revise and recast various definitions for purposes of the School Energy Efficiency Stimulus Program, including, among others, by defining "noncompliant appliance" to additionally include a commercial propane, natural gas, or oil water heater. The bill would extend the date by which all funds allocated pursuant to the program are required to be spent or returned to each utility by December 1, 2030, as specified. The bill would authorize the Energy Commission to set application and encumbrance deadlines to ensure that the reversion of these funds occurs instead by December 1, 2030. The bill would additionally authorize the Energy Commission to establish the timing of grant funding, as specified. The bill would require, for the first 2 program years, that 75% of these moneys are allocated to the SRVEVR Program and that 25% of these moneys are allocated to the SNPFA Program. The bill would, after the first 2 program years, instead authorize the Energy Commission to reallocate remaining moneys between the SRVEVR and SNPFA programs based on need. The bill would instead repeal these provisions on January 1, 2031. Under existing law, the moneys in the School Energy Efficiency Stimulus Program Fund are continuously appropriated. By extending the term of a continuous appropriation, the bill would make an appropriation. (2) Existing law requires the Energy Commission, until March 1, 2027, to annually submit a report to the relevant policy committees of the Legislature and the Joint Legislative Budget Committee describing programmatic activities and spending pursuant to the School Energy Efficiency Stimulus Program, as specified. This bill would extend the above-described annual reporting requirement to require that report until March 1, 2031. (3) Under existing law, a violation of the Public Utilities Act is a crime. Because certain provisions of this bill would be part of the act, the violation of which would be a crime, the bill would impose a state-mandated local program. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.