BILL NUMBER: AB 1873 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Huffman
FEBRUARY 16, 2010
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. An act to add
Section 38576 to the Health and Safety Code, relating to air
pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 1873, as amended, Huffman. Contractual assessments:
financing bonds: improvements. PACE bonds:
market-based compliance mechanism revenues.
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. The
act authorizes the state board to include the use of market-based
compliance mechanisms in these regulations.
Existing law authorizes a legislative body of a public agency, as
defined, to determine that it would be convenient and
, advantageous , and in the public interest
to designate an area within which authorized officials and
free and willing property owners may enter into
voluntary contractual assessments to finance 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 authorize the state board , upon
appropriation by the Legislature, to use those fee
revenues collected from market-based compliance
mechanisms to purchase those financing bonds , subject
to appropriation and bonds secured by a voluntary
contractual assessment or a voluntary special tax on property, to
finance the installation of distributed generation renewable energy
sources, or energy or water efficiency improvements levied pursuant
to a chartered city's constitutional authority .
Vote: majority. Appropriation: no. Fiscal committee: 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 , or a voluntary
contractual assessment or voluntary special tax that is levied
pursuant to a chartered city's constitutional authority,
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 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.
SEC. 2. Section 38576 is added to the
Health and Safety Code , to read:
38576. (a) The state board may use revenues collected pursuant to
this part to purchase Property Assessed Clean Energy bonds, upon
appropriation by the Legislature for that purpose.
(b) For purposes of this section, "Property Assessed Clean Energy
bond" or "PACE bond" means a bond that is secured by a voluntary
contractual assessment on property authorized pursuant to paragraph
(2) of subdivision (a) of Section 5898.20 of the Streets and Highways
Code or by a voluntary contractual assessment or a voluntary special
tax on property to finance the installation of distributed
generation renewable energy sources, or energy or water efficiency
improvements that is levied pursuant to a chartered city's
constitutional authority under Section 5 of Article XI of the
California Constitution.