BILL NUMBER: AB 1873	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 27, 2010
	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 16, 2010

   An act to add  Section 38576 to the Health and Safety
  Sections 16480.45 and 20194.5 to the Government Code,
and to amend Section 11797 of the Insurance  Code, relating to
 air pollution   Property Assessed Clean Energy
Bonds  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1873, as amended, Huffman.  PACE bonds : market-based
compliance mechanism revenues.   Property Assessed Clean
Energy (PACE) bonds.  
   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
include the use of market-based compliance mechanisms in these
regulations.  
   Existing law requires the Treasurer to invest or make deposits in
banks and savings and loan associations of revenues in the Pooled
Money Investment Account in accordance with designations specified by
the Pooled Money Investment Board.  
   The Board of Administration of the Public Employees' Retirement
System is authorized to make any investment authorized by law,
including, among others, an investment in real property.  
   The State Compensation Insurance Fund is authorized to purchase
general obligation bonds or other evidence of indebtedness issued by
the state. 
   Existing law authorizes a legislative body of a public agency, as
defined, to determine that it would be convenient, advantageous, and
in the public interest to designate an area within which authorized
officials and 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)
 . 
   Existing law defines a Property Assessed Clean Energy (PACE) bond
as a bond that is secured by a voluntary contractual assessment as
previously described 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 are levied pursuant to a chartered city'
s constitutional authority under Section 5 of Article XI of the
California Constitution. 
   This bill would authorize the  state board, upon
appropriation by the Legislature, to use revenues collected from
market-based compliance mechanisms to purchase those financing bonds
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.   Treasurer, upon direction of
the Pooled Money Investment Board, the Board of Administration of
the Public Employees' Retirement System, and the State Compensation
Insurance Fund to purchase PACE bonds from specified funds. 
   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 16480.45 is added to the 
 Government Code   , to read:  
   16480.45.  In addition to any other investment authorized by this
article, the Treasurer may invest in Property Assessed Clean Energy
(PACE) bonds, as defined in Section 26104 of the Public Resources
Code. 
   SEC. 3.    Section 20194.5 is added to the  
Government Code   , to read:  
   20194.5.  In addition to the other investments authorized by this
article, the board may invest in Property Assessed Clean Energy
(PACE) bonds, as defined in Section 26104 of the Public Resources
Code. 
   SEC. 4.    Section 11797 of the   Insurance
Code   is amended to read: 
   11797.  (a) The board of directors shall cause all moneys in the
State Compensation Insurance Fund which are in excess of current
requirements to be invested and reinvested, from time to time, in the
same manner as provided for private insurance carriers pursuant to
Article 3 (commencing with Section 1170) of Chapter 2 of Part 2 of
Division 1.
   (b) (1)  (A)    Notwithstanding any other
 provision of  law, the State Compensation Insurance
Fund may purchase general obligation bonds or other evidence of
indebtedness issued by the state, including, but not limited to,
notes issued pursuant to Part 5 (commencing with Section 17300) of
Division 4 of Title 2 of the Government Code or warrants issued
pursuant to Part 4 (commencing with Section 17000) of Division 4 of
Title 2 of the Government Code, in any amount and to enter into
purchase contracts with the state for this purpose. 
   (B) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase Property Assessed Clean Energy (PACE)
bonds, as defined in Section 26104 of the Public Resources Code.

   (2) The bonds or other evidence of indebtedness specified in
paragraph (1), upon delivery to the State Compensation Insurance
Fund, shall, for all purposes, be valid and binding obligations of
the issuer thereof, be validly issued and outstanding in accordance
with their stated terms, and not be deemed to be owned by or on
behalf of the issuer thereof. 
  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.