BILL NUMBER: AB 2003 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Saldana
FEBRUARY 15, 2008
An act to add Division 16.1 (commencing with Section 26101) to the
Public Resources Code, relating to energy, by providing the funds
necessary therefor through an election for the issuance and sale of
bonds of the State of California and for the handling and disposition
of those funds, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2003, as introduced, Saldana. Energy: Climate Protection and
Energy Efficiency Bond Act of 2008.
Existing law provides various funding sources for energy
conservation and efficiency projects, renewable energy generation,
and related purposes.
This bill, subject to voter approval at the November 4, 2008,
statewide general election, would enact the Climate Protection and
Energy Efficiency Bond Act of 2008 which, if adopted by the voters,
would authorize the issuance and sale of $2, 000,000,000 in state
general obligation bonds for specified purposes, including expanding
the development and use of solar, wind, and geothermal energy, fuel
cells, and other energy generating technologies that would assist the
state in meeting the greenhouse gas emission targets specified in
the California Global Warming Solutions Act of 2006; low-income
weatherization and other energy conservation and efficiency projects
for low-income communities; and projects to improve the energy
efficiency of state buildings and facilities and to install solar,
wind, fuel cells, and other energy generating technologies that will
reduce greenhouse gas emissions associated with the operation of
those buildings and facilities.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Division 16.1 (commencing with Section 26101) is added
to the Public Resources Code, to read:
DIVISION 16.1. CLIMATE PROTECTION AND ENERGY EFFICIENCY BOND
ACT OF 2008
CHAPTER 1. GENERAL PROVISIONS
26101. This division shall be known and may be cited as the
Climate Protection and Energy Efficiency Bond Act of 2008.
26102. As used in this division, the following terms have the
following meanings:
(a) "Board" means any department receiving an allocation of bond
proceeds pursuant to this division.
(b) "Commission" means the State Energy Resources Conservation and
Development Commission.
(c) "Committee" means the Climate Protection and Energy Efficiency
Finance Committee created pursuant to Section 26106.
(d) "Department" means the Department of General Services.
(e) "Fund" means the Climate Protection and Energy Efficiency Fund
of 2008 created pursuant to Section 26103.
CHAPTER 2. CLIMATE PROTECTION AND ENERGY EFFICIENCY FUND AND
PROGRAM
26103. The Climate Protection and Energy Efficiency Fund of 2008
is hereby created in the State Treasury. The proceeds from the bonds
sold pursuant to this division shall be deposited in the fund and
shall be available for appropriation by the Legislature, in the
manner and for the purposes set forth in this division in accordance
with the following schedule:
(a) The sum of one billion dollars ($1,000,000,000) shall be
available to the commission for projects to expand the development
and use of solar, wind, and geothermal energy, fuel cells, and other
energy generating technologies that assist the state in meeting the
greenhouse gas emission targets established in the California Global
Warming Solutions Act of 2006, Division 25.5 (commencing with Section
38500) of the Health and Safety Code.
(b) The sum of five hundred million dollars ($500,000,000) shall
be available for low-income weatherization and other energy
conservation and efficiency projects that reduce energy consumption
in an economically equitable manner for low-income communities.
(c) The sum of five hundred million dollars ($500,000,000) shall
be available to the department for projects to improve the energy
efficiency of state buildings and facilities to install, to the
maximum extent feasible, solar, wind, fuel cells, or other energy
generating technologies that will reduce the greenhouse gas emissions
associated with the operation of those buildings and facilities.
CHAPTER 3. FISCAL PROVISIONS
26104. Bonds in the total of two billion dollars
($2,000,000,000), or so much thereof as is necessary, not including
the amount of any refunding bonds, or so much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this division and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5 of the Government Code. The bonds, when sold, shall
be and constitute a valid and binding obligation of the State of
California, and the full faith and credit of the State of California
is hereby pledged for the punctual payment of both principal of, and
interest on, the bonds as the principal and interest become due and
payable.
26105. The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
except subdivision (a) of Section 16727 of the Government Code to the
extent that it is inconsistent with this division, and all of the
other provisions of that law as amended from time to time apply to
the bonds and to this division and are hereby incorporated in this
division as though set forth in full in this division.
26106. (a) Solely for the purpose of authorizing the issuance and
sale pursuant to the State General Obligation Bond Law of the bonds
authorized by this division, the Climate Protection and Energy
Efficiency Finance Committee is hereby created. For the purposes of
this division, the Climate Protection and Energy Efficiency Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer,
the Controller, the Director of Finance, the Chair of the State
Energy Resources Conservation and Development Commission, and the
Director of General Services, or a designated representative of each
of those officials. The Treasurer shall serve as the chairperson of
the committee. A majority of the committee may act for the committee.
(b) For the purposes of the State General Obligation Bond Law, any
department receiving an allocation pursuant to this division is
designated to be the "board."
26107. Upon request of the board stating that funds are needed
for purposes of this division, the committee shall determine whether
or not it is necessary or desirable to issue bonds authorized
pursuant to this division in order to carry out the actions specified
in Chapter 2 (commencing with Section 26103), and, if so, the amount
of bonds to be issued and sold. Successive issues of bonds may be
authorized and sold to carry out those actions progressively, and it
is not necessary that all of the bonds authorized to be issued be
sold at any one time.
26108. There shall be collected each year in the same manner and
at the same time as other state revenue is collected, in addition to
the ordinary revenues of the state, a sum in an amount required to
pay the principal of, and interest on, the bonds each year. It is the
duty of all officers charged by law with any duty in regard to the
collection of the revenue to do and perform each and every act that
is necessary to collect that additional sum.
26109. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this division, an amount that will
equal the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 26110, appropriated
without regard to fiscal years.
26110. For the purpose of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this division. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund, plus the interest the amounts would
have earned in the Pooled Money Investment Account, from money
received from the sale of bonds for the purposes of carrying out this
division.
26111. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
26112. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
bond act.
26113. The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, including
other authorized forms of interim financing that include, but are not
limited to, commercial paper, in accordance with Section 16312 of
the Government Code, for purposes of this division. The amount of the
request shall not exceed the amount of the unsold bonds that the
committee, by resolution, has authorized to be sold for the purpose
of this division, less any amount withdrawn pursuant to Section
26103. The board shall execute any documents as required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated in
accordance with this division.
26114. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of bonds described in this division includes the
approval of issuance of any bonds issued to refund any bonds
originally issued under this division or any previously issued
refunding bonds.
26115. Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this division that include a bond counsel opinion
to the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment of earnings on those proceeds.
The Treasurer may use or direct the use of those proceeds or earning
to pay any rebate, penalty, or other payment required under federal
law or take any other action with respect to the investment and use
of those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
26116. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this division
are not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
SEC. 2. Section 1 of this act shall take effect only upon the
approval by the voters of the Climate Protection and Energy
Efficiency Bond Act of 2008, as set forth in Section 1 of this act.
SEC. 3. Section 1 of this act shall be submitted to the voters at
the November 4, 2008, statewide general election in accordance with
provisions of the Government Code and the Elections Code governing
the submission of a statewide measure to the voters.
SEC. 4. (a) Notwithstanding any other provision of law, all
ballots of the election shall have printed thereon and in a square
thereof, the words: "Climate Protection and Energy Efficiency Bond
Act of 2008," and in the same square under those words, the following
in 8-point type: "This act provides for a bond issue of two billion
dollars ($2,000,000,000) to provide funds for a Climate Protection
and Energy Efficiency program." Opposite the square, there shall be
left spaces in which the voters may place a cross in the manner
required by law to indicate whether they vote for or against the act.
(b) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
(c) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters' choice by means thereof are in compliance with this
section.
SEC. 5. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order for the bond act in Section 1 of this act to be submitted
to the voters at the November 4, 2008, statewide general election,
it is necessary for this act to take effect immediately.