CA SB870

Establishes the California Energy Innovation Program (CEIP) administered by the Energy Commission to fund research, development, and demonstration projects addressing barriers to achieving California's energy policy goals, including energy storage, renewable energy integration, energy efficiency, and electric vehicle integration.

Creates the CEIP Coordinating Council consisting of representatives from utilities, state agencies, and stakeholder groups to meet at least twice yearly to identify technological challenges warranting funding and recommend projects to avoid duplication.

Establishes the Clean Energy Innovation Program Fund in the State Treasury to receive public goods charges collected on and after January 1, 2012, with funds expended upon appropriation for CEIP projects while minimizing administrative overhead.

Modifies natural gas surcharge provisions to require only persons consuming natural gas delivered by interstate pipelines to pay surcharges quarterly to the State Board of Equalization, while public utility gas corporations continue collecting surcharges for low-income assistance, energy efficiency, and research programs but no longer remit to the state board.

Requires the Energy Commission to submit annual reports by March 31 to the Legislature describing awarded projects, completed projects and outcomes, ongoing projects, and technological challenges identified by the CEIP Coordinating Council; bill does not become operative unless Assembly Bill 724 is enacted by January 1, 2012.