BILL NUMBER: AB 1873 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Huffman
FEBRUARY 16, 2010
An act relating to contractual assessments.
An act to amend Section 38597 of the Health and Safety Code, and
to amend Section 5898.28 of the Streets and Highways Code, relating
to contractual assessments.
LEGISLATIVE COUNSEL'S DIGEST
AB 1873, as amended, Huffman. Contractual assessments.
assessments: financing bonds: improvements.
The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and to
monitor and enforce compliance with the reporting and verification
program, and requires the state board to adopt a statewide greenhouse
gas emissions limit, equivalent to the statewide greenhouse gas
emissions level in 1990, to be achieved by 2020. The state board is
required by January 1, 2011, to adopt greenhouse gas emissions limits
and emission reduction measures by regulation to achieve the
prescribed emission reductions. The act authorizes the state board to
adopt a schedule of fees to be paid by the sources of greenhouse gas
emissions, the revenues from which are to be deposited into the Air
Pollution Control Fund, to be available for purposes of carrying out
the act, subject to appropriation.
Existing law authorizes a legislative body of a public agency, as
defined, to determine that it would be convenient and advantageous to
designate an area within which authorized officials and free and
willing property owners may enter into contractual assessments to
finance specified improvements the
installation of distributed generation renewable energy sources or
energy or water efficiency improvements that are permanently fixed
to real property. Existing law authorizes a public agency
to issue bonds to finance that work, to be repaid by voluntary
contractual assessments (financing bonds).
This bill would state the intent of the Legislature to enact
legislation to assist public agencies finance contractual assessment
programs, and in doing so, create local jobs, stimulate local
economies, and improve the environment.
This bill would authorize the state board to use those fee
revenues to purchase those financing bonds, subject to appropriation.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) Global climate change poses serious risks to California's
public health and natural environment, including significant threats
to air and water quality and irreparable damage to ecosystems and
wildlife.
(b) This state has established clear policy goals, through
measures such as the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), to address global climate change.
(c) The Legislature has also established clear policy goals to
promote energy efficiency, reduce the state's reliance on fossil
fuels, and increase the state's energy independence.
(d) The promotion of renewable energy sources along with increased
efficiency reduces pollution and greenhouse gas emissions and has a
positive effect on air quality.
(e) Investment in energy and water efficiency improvements is also
of benefit to California's economy, stimulating financial
investments and creating new jobs.
(f) The protection of California's natural resources helps
stimulate our economy, especially industries related to tourism,
fishing, and new technologies, as well as enhancing citizens' quality
of life.
(g) Residential property improvements to energy and water
efficiency financed by contractual assessments authorized by Section
5898.20 of the Streets and Highways Code provide a public benefit to
everyone in California.
SEC. 2. Section 38597 of the Health and
Safety Code is amended to read:
38597. (a) The state board may adopt by regulation,
after a public workshop, a schedule of fees to be paid by the sources
of greenhouse gas emissions regulated pursuant to this division,
consistent with Section 57001. The revenues collected pursuant to
this section, shall be deposited into the Air Pollution Control Fund
and are available , upon appropriation ,
by the Legislature, for purposes of carrying out this
division.
(b) The state board may use revenues deposited in the Air
Pollution Control Fund pursuant to this section to purchase bonds
issued pursuant to Section 5898.28 of the Streets and Highways Code
to finance the installation of distributed generation renewable
energy sources or energy or water efficiency improvements, upon
appropriation by the Legislature for that purpose.
SEC. 3. Section 5898.28 of the Streets
and Highways Code is amended to read:
5898.28. A public agency may issue bonds pursuant to this
chapter, the principal and interest for which would be repaid by
voluntary contractual assessments. A public agency may advance its
own funds to finance work to be repaid through voluntary contractual
assessments, and may from time to time sell bonds to reimburse itself
for such those advances. A public
agency may enter into a relationship with an underwriter or financial
institution that would allow the sequential issuance of a series of
bonds, each bond being issued as the need arose to finance work to be
repaid through voluntary contractual assessments. The interest rate
of each bond may be determined by an appropriate index, but shall be
fixed at the time each bond is issued. Bond proceeds may be used to
establish a reserve fund, and to pay for expenses incidental to the
issuance and sale of the bonds. Division 10 (commencing with Section
8500) shall apply to any bonds issued pursuant to this section,
insofar as that division is not in conflict with this chapter.
SECTION 1. It is the intent of the Legislature
to enact legislation to assist public agencies finance contractual
assessment programs, and in doing so, create local jobs, stimulate
local economies, and improve the environment.