SB 1670 Senate Bill - INTRODUCED

BILL NUMBER: SB 1670	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Kehoe
   (Coauthor: Assembly Member Lieu)

                        FEBRUARY 22, 2008

   An act to add Division 16.3 (commencing with Section 26301) to the
Public Resources Code, relating to energy efficiency and carbon
reduction, by providing 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


   SB 1670, as introduced, Kehoe. Energy efficiency and carbon
reduction.
   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 Energy Efficiency and
Carbon Reduction State Building Trust Fund of 2008 to authorize $2
billion of state general obligation bonds for implementing programs
to reduce the energy purchased by state entities for state-owned and
long-term leased buildings; to assist state entities in
retrocommissioning and recommissioning state funded buildings with
the goal of assuring energy and resource consuming equipment are
installed and operated at optimal efficiency; and to assist schools
in financing energy efficiency measures consistent with the Green
Building Action Plan.
   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 16.3 (commencing with Section 26301) is added
to the Public Resources Code, to read:

      DIVISION 16.3.  Energy Efficiency and Carbon Reduction State
Building Trust Fund Act of 2008


      CHAPTER 1.  GENERAL PROVISIONS


   26301.  This division shall be known as the Energy Efficiency and
Carbon Reduction State Building Trust Fund Act of 2008.
   26302.  As used in this division, the following terms have the
following meanings:
   (a) "Board" means the ____ for programs administered by the ____.
   (b) "Committee" means the Energy Efficient State Building Finance
Committee created pursuant to Section 26306.
   (c) "Fund" means the Energy Efficiency and Carbon Reduction State
Building Trust Fund of 2008 created pursuant to Section 26303.
      CHAPTER 2.  THE ENERGY EFFICIENCY AND CARBON REDUCTION STATE
BUILDING TRUST FUND AND PROGRAM


   26303.  (a) The Energy Efficiency and Carbon Reduction State
Building Trust Fund of 2008 is hereby created in the State Treasury.
The proceeds of bonds sold pursuant to this division shall be
deposited in the funds to be administered by the ____, and shall be
used to fund the energy efficiency and carbon reduction-related
programs described in this chapter over the course of 20 years.
   (b) Notwithstanding Section 13340 of the Government Code, the
money in the fund shall be continuously appropriated to the ____ to
be expended in implementing the programs specified in the Governor's
Executive Order S-20-04 that includes all of the following:
   (1) To reduce the amount of energy purchased by state entities for
all state-owned and long-term leased buildings through the
implementation of all cost-effective, operational, and efficiency
measures, including renewable energy technologies, with a goal to
reduce energy consumption by at least 20 percent by 2015.
   (2) To assist state entities in retrocommissioning and
recommissioning, including retrocommissioning and energy efficiency
studies, all state-funded buildings with the goal of assuring energy
and resource consuming equipment are installed and operated at
optimal efficiency. Priority shall be given to funding those
buildings over 50,000 square feet.
   (3) To assist schools, including, but not limited to, public
elementary and secondary schools, universities in the University of
California and California State University systems, and community
colleges, in financing energy efficiency measures consistent with the
guidelines developed pursuant to the Green Building Action Plan that
accompanies the Governor's Executive Order S-20-04.
   (c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this division for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
      CHAPTER 3.  FISCAL PROVISIONS


   26304.  Bonds in the total amount of two billion dollars
($2,000,000,000), 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 the principal of, and interest on, the bonds as the
principal and interest become due and payable.
   26305.  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 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 part
as though set forth in full in this division.
   26306.  (a) The Energy Efficient State Building Finance Committee
is hereby created for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this division. For purposes of this division, the
Energy Efficient State Building Finance Committee is "the committee"
as that term is used in the State General Obligation Bond Law. The
committee consists of the Controller, the Treasurer, the Director of
Finance, the Chair of the State Energy Resources Conservation and
Development Commission, and the President of the Public Utilities
Commission, or their designated representatives. The Treasurer shall
serve as the chairperson of the committee. A majority of the
committee may act for the committee.
   (b) The committee may adopt guidelines establishing requirements
for administration of its financing programs to the extent necessary
to protect the validity of, and tax exemption for, interest on the
bonds. The guidelines shall not constitute rules, regulations,
orders, or standards of general application and are not subject to
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
   (c) The committee may adopt guidelines to carry out the purposes
specified in Chapter 2 (commencing with Section 26303) and may
consider a portfolio approach to funding projects to maximize the
financial as well as environmental benefits of projects. The
committee shall develop performance and oversight criteria to assess
the energy savings derived from funded projects. The committee shall
perform oversight of projects to report on and ensure projects are
built on-time and on-budget, and that projects produce promised
environmental and financial benefits. For purposes of complying with
this subdivision, the committee shall use the staff of the California
Alternative Energy and Advanced Transportation Financing Authority
created pursuant to Section 26004.
   (c) For the purposes of the State General Obligation Bond Law, the
____ is designated the "board" for programs administered by ____.
   26307.  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 26303), 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. Bonds may bear interest subject to federal
income tax.
   26308.  There shall be collected annually, 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 to perform any duty in regard to
the collections of the revenues to do and perform each and every act
that is necessary to collect that additional sum.
   26309.  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 26311, appropriated
without regard to fiscal years.
   26310.  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
26211. The board shall execute any documents as required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amount loaned shall be deposited in the fund to be allocated in
accordance with this division.
   26311.  For purposes 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 purposes of carrying
out this division. Any amounts withdrawn shall be returned to the
General Fund, plus the interest that 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.
   26312.  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 refunding bonds issued to refund any
bonds originally issued under this division or any previously issued
refunding bonds.
   26313.  Notwithstanding any provisions in the State General
Obligation Bond Law, the maximum of any bonds authorized by this
division shall not exceed 30 years from the date of each respective
series. The maturity of each series shall be calculated from the date
of each series.
   26314.  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 limitation of that article.
   26315.  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 earnings
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.
   26316.  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 and, as to premium only, to
pay costs of issuance of the bonds.
  SEC. 2.  Section 1 of this act shall take effect only upon the
adoption by the voters of the Energy Efficiency and Carbon Reduction
State Building Trust Fund 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: "Energy Efficiency and Carbon Reduction State
Building Trust Fund 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
Energy Efficiency and Carbon Reduction State Building 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.