BILL NUMBER: SB 675	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 2, 2009

INTRODUCED BY   Senator Steinberg
    (   Principal   coauthors:  
Senators   Hancock   and Romero   ) 
    (   Coauthor:   Senator   Alquist
  ) 
    (   Coauthor:   Assembly Member  
Hayashi   ) 

                        FEBRUARY 27, 2009

   An act to add Part 70 (commencing with Section 102000) to Division
14 of Title 3 of the Education Code, relating to energy job
training.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 675, as amended, Steinberg. Energy job training: Clean
Technology and Renewable Energy Job Training, Career Technical
Education, and Dropout Prevention Act of 2010.
   Existing law provides various funding sources for energy
efficiency projects and related purposes.
   Existing law establishes the Public Interest Research,
Development, and Demonstration Fund in the State Treasury, and
provides that the money collected by the public goods charge to
support cost-effective energy efficiency and conservation activities,
 and  public interest research and development not
adequately provided by competitive and regulated markets, be
deposited in the fund for use by the State Energy Resources
Conservation and Development Commission to develop, implement, and
administer the Public Interest Research, Development, and
Demonstration Program to develop technologies to improve
environmental quality, enhance electrical system reliability,
increase efficiency of energy-using technologies, lower electrical
system costs, or provide other tangible benefits.
   This bill would enact the Clean Technology and Renewable Energy
Job Training, Career Technical Education, and Dropout Prevention Act
of 2010 and would create the Clean Technology and Renewable Energy
Job Training, Career Technical Education  ,  and Dropout
Prevention Fund (fund) in the State Treasury. The bill would provide
that the moneys in the fund would be available, upon appropriation by
the Legislature, in the form of competitive grants that would be
administered by the State Allocation Board and awarded to qualifying
entities for the purposes of the construction of new facilities or
the reconfiguration of existing facilities to enhance the educational
opportunities for program participants, as defined, to provide them
with the skills and knowledge necessary for careers directly related
to clean technology, renewable energy, or energy efficiency that may
also contribute to California's goal in reducing greenhouse gas
emissions. The bill would create the Clean Technology and Renewable
Energy Job Training, Career Technical Education, and Dropout
Prevention Council comprised of 9 members. The council would be
required to issue guidelines to implement the purposes of this act.
The bill would authorize the council to issue and renew negotiable
bonds, notes, debentures, or other sources of security of up to
 $5,000,000,000   an unspecified amount 
that would be secured by moneys appropriated by the Legislature in
the annual Budget Act from the Public Interest Research, Development,
and Demonstration Fund.  Proceeds from the sale of the 
bonds, notes, debentures, or other sources of security would be
deposited into the fund. 
   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.  Part 70 (commencing with Section 102000) is added to
Division 14 of Title 3 of the Education Code, to read:

      PART 70.  Clean Technology and Renewable Energy Job Training,
Career Technical Education  ,  and Dropout Prevention Act of
2010


      CHAPTER 1.  GENERAL PROVISIONS


   102000.  This part shall be known and may be cited as the Clean
Technology and Renewable Energy Job Training, Career Technical
Education, and Dropout Prevention Act of 2010.
   102001.  (a) The  people of the State of California and
the  Legislature, in approving this measure, find and
declare all of the following:
   (1) California's international leadership in renewable energy,
energy conservation, clean technology, and climate change policies
creates significant, but dramatically underfunded, opportunities to
provide strategic capital investments in energy conservation, clean
technologies, and renewable energy, including projects that
contribute directly to workforce development and educational
opportunities for high school pupils, young workers, community
college students and graduates, youth who participate in community or
state service organizations, college and university students and
graduates, apprenticeship programs for building and construction
trades and other technical and vocational careers, and training
programs for unemployed, underemployed, or displaced workers and high
school dropouts.
   (2) California has an opportunity to combine the education and
training of both its future college-educated workforce, the
underemployment of recent high school graduates, and its highly
skilled technical workforce with its effort to combat high school
dropouts and the retraining of workers who have been displaced by the
loss of high-wage jobs in California. Clean technology jobs and
renewable energy jobs (green collar jobs) can provide underserved
communities with a pathway out of poverty, a new and inspiring focus
for educational institutions and nonprofit organizations, and
significant statewide economic and environmental benefits.
   (3) A 2006 poll of at-risk California 9th and 10th graders by
Peter D. Hart Research Associates found that six in 10 pupils were
not motivated to succeed in school. Of those pupils, more than 90
percent said they would be more engaged in their education if classes
helped them acquire skills and knowledge relevant to future careers.
Career technical education programs that create paths to further
education, advanced training, or productive jobs in high opportunity
careers can keep pupils engaged and on track toward a diploma.
   (4) Investments in renewable energy, energy conservation, clean
technologies, and climate change mitigation, and investments that
develop the workforce for these industries  ,  will provide
multiple benefits to California in all of the following ways:
   (A) Helping to achieve the state's climate change goals required
by the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
   (B) Creating employment opportunities for Californians that would
otherwise not be fully realized.
   (C) Creating opportunities for new businesses, and expanding and
retrofitting existing businesses.
   (D) Expanding the state's utilization of renewable energy.
   (E) Contributing to the growth of clean technology businesses in
California.
   (5) A failure to act by California will perpetuate the lack of an
integrated education, job training, and business infrastructure that
otherwise could take advantage of the projected growth in these
industries and the corresponding increase in state and local taxes,
other public revenues, and additional economic benefits associated
with the likely surge in clean technology and renewable energy jobs.
   (6) The American Solar Energy Association, for example, concluded
that in 2006 approximately 3.6 million Americans were directly
employed by renewable energy and energy efficiency firms and that
another 5 million Americans held jobs indirectly attributable to
these industries. The renewable energy and energy efficiency
industries of America generated approximately nine hundred
seventy-five million dollars ($975,000,000) in revenue in 2006. These
industries could employ a workforce of up to 40 million Americans,
and could generate four trillion five hundred billion dollars
($4,500,000,000,000) in annual revenue by 2030 if these industries
were expanded aggressively.
   (7) The Renewable and Appropriate Energy Laboratory at the
University of California, Berkeley, found that renewable energy
creates more jobs per megawatt of power installed, per unit of energy
produced, and per dollar of investment, than the fossil fuel
energy-based sector.
   (8) A study by the Apollo Alliance, a coalition of business,
labor, and environmental organizations, showed that a major national
investment in renewable energy, alternative automobiles and fuels,
high-performance buildings, and infrastructure would result in the
creation of nearly 3.5 million green collar jobs for Americans over a
10-year period.
   (9) Reducing high school dropout and joblessness rates among
California's young people who are preparing for and entering the job
market are important state priorities and it is especially important
that high school and community college students who choose to do so
are trained in careers that will help California achieve its
greenhouse gas reduction goals and contribute to the development of
California's renewable energy resources.
   (b) (1) It is the intent of  the people of the State of
California and  the Legislature to stimulate the economy of
the State of California, to create tens of thousands of good paying
jobs in industries and businesses that are in compliance with the
state's environmental protection laws and regulations, to provide to
entrepreneurs and employers the best-trained workforce in the United
States, and to prepare young people and adults to work in clean,
green industries and professions. These jobs would provide green
pathways out of poverty for individuals in communities that suffer
higher high school dropout rates, joblessness, and pollution. These
jobs would help achieve California's climate change mitigation
obligations and conserve our state's vital resources of water, air
quality, land, and energy. These investments would enable California
to offer opportunities for business leaders, communities, young
people, and adults alike, all of which would benefit from California'
s emerging new green economy.
   (2) It is the intent of  the people of the State of
California and  the Legislature that federally recognized
California Indian tribes should be eligible to apply for and expend
funds authorized in this part.
   (3) It is the intent of  the people of the State of
California and  the Legislature that the grants authorized
by this part should be expended on projects that will occur in
California.
   102002.  As used in this part, the following terms have the
following meanings:
   (a) "Board" means the State Allocation Board.
   (b) "Clean technology projects" means the following:
   (1) Energy audits that include a determination of the energy
savings that could be achieved from projects funded under this part
and that may be recovered through utility bill financing.
   (2) Retrofitting and weatherization activities that increase
energy efficiency and conservation.
   (3) Energy- and water-efficient public buildings.
   (4) Retrofitting and installing energy-efficient household
appliances, windows, doors, insulation, and lighting.
   (5) Retrofitting and installing water and energy conservation
technologies in existing homes, industrial buildings, commercial and
public buildings, and farms, forestlands, and ranches, to improve
efficiency, including the use of energy and water management
technologies and control systems.
   (6) The manufacture, sale, assembly, installation, construction,
and maintenance of energy-efficient technologies and renewable energy
facilities or the component parts of renewable energy technologies.
   (7) Projects related to energy-efficient technologies or practices
and renewable energy production or the component parts of renewable
energy plants and energy distribution, including energy storage,
energy infrastructure (including transmission), transportation
(including logistics), clean vehicle technology, clean heat and
power, and water and wastewater (including water conservation).
   (8) Natural resource conservation projects related to adapting to
climate change such as fish and wildlife habitat restoration,
reforestation, native species preservation, invasive species
eradication, community tree planting, and other projects that address
stressors on natural resources generated by climate change.
   (c) "Council" means the Clean Technology and Renewable Energy Job
Training, Career Technical Education, and Dropout Prevention Council
and shall be comprised of the following nine individuals:
   (1) The Secretary of the Natural Resources Agency, who will serve
as chair of the council.
   (2) The Secretary of Labor and Workforce Development.
   (3) The Secretary for Environmental Protection.
   (4) The Superintendent of Public Instruction.
   (5) The Chancellor of the California Community Colleges.
   (6) Two members appointed by the Senate Committee on Rules who
shall be representatives of each of the following:
   (A) An employer engaged in the industries described in
subdivisions  (c) and (k)   (b) and (i)  .
   (B) A nonprofit environmental advocacy organization.
   (7) Two members appointed by the Speaker of the Assembly who shall
be representatives of each of the following:
   (A) A community-based organization representing the interests of
disadvantaged communities in the state, including, but not limited
to, communities with the highest rates of school dropouts.
   (B) A labor organization that provides state-approved
preapprenticeship and apprenticeship training programs related to
energy efficiency or renewable energy development.
   (d) "Disadvantaged community" means a community with a median
household income that is less than 89 percent of the statewide
average. "Severely disadvantaged community" means a community with a
median household income that is less than 60 percent of the statewide
average.
   (e) "Eligible entity" means any of the following:
   (1) A public school that serves any of grades 7 to 12, inclusive.
   (2) A California community college.
   (3) Other public entity that provides career technical education,
including a county office of education or school agency joint
 power   powers  authority.
   (4) A publicly owned or investor-owned utility.
   (5) A nonprofit organization that is qualified under Section 501
(c)(3) of the Internal Revenue Code and that is registered to do
business in California.
   (6) A labor organization.
   (7) A business entity.
   (8) A state-approved apprenticeship program.
   (9) A regional collaborative consisting of local educational
agencies, higher education institutions, businesses, labor
organizations, or community-based organizations, including workforce
investment boards and regional workforce or economic development
entities.
   (10) The California Conservation Corps or a certified local
conservation corps.
   (11) A public postsecondary educational institution.
   (12) Any other entity approved by the council.
   (f) "Fund" means the Clean Technology and Renewable Energy Job
Training, Career Technical Education, and Dropout Prevention Fund
created pursuant to subdivision (a) of Section 102003.
   (g) "Program participant" means middle or high school pupils,
community college students, job trainees, incumbent workers, members
of the California Conservation Corps and certified local conservation
corps, or minors or adults under 22 years of age who are on
probation or participating in a program that includes career
technical education as an alternative to conviction, incarceration,
or adjudication as described in paragraph (3) of subdivision (i) of
Section 102003, served by eligible entities.
   (h) "Reconfiguration" means a modification of a structure of any
age that will enhance the educational opportunities for program
participants in order to provide them with the skills and knowledge
necessary for their successful employment in careers directly related
to clean technology, renewable energy, or energy efficiency that may
also contribute to California's goals to reduce greenhouse gas
emissions. "Reconfiguration" may include new construction necessary
to accommodate the reconfiguration.
   (i) "Renewable energy projects" means research and development,
manufacturing, generation, development, and maintenance of
appropriately sited power line transmission, power storage,
installation, repair, maintenance, and related activities necessary
to produce energy from wind, photovoltaic, solar thermal, geothermal,
biomass, including cellulosic ethanol, biodiesel, and biomass power,
green waste, and fuel cells.
      CHAPTER 2.  CLEAN TECHNOLOGY AND RENEWABLE ENERGY JOB TRAINING,
CAREER TECHNICAL EDUCATION, AND DROPOUT PREVENTION


   102003.  (a) The Clean Technology and Renewable Energy Job
Training, Career Technical Education, and Dropout Prevention Fund is
hereby established in the State Treasury to provide funding, upon
appropriation by the Legislature,  including  
consisting of, but not limited to,  funds from the sale of bonds
pursuant to Section 102006, in the form of competitive grants to
qualifying entities for the purpose of constructing new facilities or
reconfiguring existing facilities, including, but not limited to,
purchasing equipment with an average useful life expectancy of at
least 10 years, to enhance educational opportunities for program
participants in order to provide them with the skills and knowledge
necessary for their successful employment in careers directly related
to clean technology, renewable energy, or energy efficiency that may
also contribute to California's goal in reducing greenhouse gas
emissions. New construction and reconfiguration must have a useful
life expectancy of at least 20 years or the length of bond maturity.
   (b) The council shall develop criteria to evaluate the fund. The
criteria shall include measures of education, job readiness, and
environmental outcomes and shall ensure equity, program relevance to
industry needs, and articulation with more advanced coursework at
qualified community colleges, public universities, or private
institutions.
   (c) Grant applications shall be administered by the board.
   (d) Grants shall be allocated on a per-square-foot basis for the
applicable type of construction proposed or deemed necessary by the
board consistent with the approved application for the project.
   (e) New construction grants shall not exceed three million dollars
($3,000,000) per project per eligible entity, including equipment,
and be allocated to eligible entities pursuant to this section, in
either of the following methods:
   (1) For a stand-alone project on a per-square-foot basis for the
applicable type of construction proposed, based on the criteria
established pursuant to subdivision (b), consistent with the approved
application for the project.
   (2) For new construction projects, as a supplement to the per
pupil allocation pursuant to Section 17072.10. The supplement is
intended to cover excess costs uniquely related to the facilities
required to provide the career technical education program or
programs.
   (f) Modernization grants shall not exceed one million five hundred
thousand dollars ($1,500,000) per project per eligible entity,
inclusive of equipment and may be awarded to schools serving pupils
in any of grades 7 to 12, inclusive, community colleges or joint
power authorities currently operating career technical education
programs that have an active career technical advisory committee
pursuant to Section 8070 for the purpose of reconfiguration, or other
eligible entities. For schools serving pupils in any of grades 7 to
12, inclusive, the grant shall be supplemental to the per pupil
allocation pursuant to Section 17074.10. The supplement is intended
to cover excess costs uniquely related to the facilities required to
provide the career technical education program or programs.
   (g) (1) An eligible entity shall contribute a dollar amount that
is equal to the amount of the grant of state funds awarded under
subdivisions (d), (e), and (f). The local contribution may be
provided by private industry groups, the school district, or a joint
powers authority, and may be reduced but not eliminated at the
discretion of the council. The local contribution may be a dollar
amount that is used to fund career technical education programs that
will be housed in the projects or used to purchase the durable
equipment described in subdivision (a).
   (2) A school or community college district shall not be required
to demonstrate that it has unhoused pupils or that a permanent school
building is more than 25 years old in order to receive a grant under
the program.
   (h) The program shall allow the local contribution to be paid over
time should sufficient local funds not be immediately available. The
State Allocation Board may provide for a repayment schedule
consistent with subparagraphs (C) and (D) of paragraph (1) of
subdivision (a) of Section 17078.57. The board shall not waive the
local contribution on the basis of financial hardship or on any other
basis.
   (i) Applicants shall meet the criteria developed under subdivision
(b) and shall do one of the following:
   (1) Enter into agreements, including, but not limited to,
partnerships, contracts, memoranda of understanding, or other
mutually agreed upon arrangements with middle schools, high schools,
or community colleges to support middle school career exploration
activities; curriculum and professional development; high school
pathway programs that integrate academic and technical learning to
prepare pupils for both college and careers, including a sequence or
cluster of three or more courses that align with the State Board of
Education approved career technical education standards and
frameworks, and may be delivered through high schools, regional
occupation centers or programs, adult education programs, partnership
academies, or alternative education programs, including continuation
schools and programs administered by county offices of education.
   (2) Enter into agreements, including, but not limited to,
partnerships, contracts, memoranda of understanding, or other
mutually agreed upon arrangements with any other eligible entity to
provide school dropouts or high school graduates under 22 years of
age with inadequate job skills, or members of the California
Conservation Corps and certified local conservation corps, the
knowledge, skills, and credentials necessary for their successful
employment in careers directly related to clean technology, renewable
energy, or energy efficiency that may also contribute to California'
s goals to reduce greenhouse gas emissions.
   (3) Enter into agreements, including, but not limited to,
partnerships, contracts, memoranda of understanding, or other
mutually agreed upon arrangements with a state, local, regional, or
county program, or qualified nonprofit organization that provides
education, job training, or career opportunities for minors or adults
under 22 years of age who are on probation or parole or with a
similar program or organization providing education, job training, or
career opportunities to minors or adults under 22 years of age as
part of an alternative to conviction, incarceration, or adjudication
that is consistent with the Penal Code.
   (j) A grant application shall include all of the following:
   (1) A clear and comprehensive career technical education plan for
each course of study applicable to the instructional space that
includes programs that focus on clean technology, renewable energy,
or energy efficient systems.
   (2) Projections of program participant enrollment.
   (3) Identification of feeder schools and institutions, industry,
labor organizations, community colleges, or other postsecondary
schools participating in the development, articulation, and review of
the educational program, or other appropriate collaborating
entities.
   (4) Written approval of the plan by entities listed in paragraph
(3).
   (5) The method by which accountability for program participant
enrollments and outcomes will be maintained. Outcomes shall include,
but are not limited to, certificate completion, the successful
employment of program participants in the applicable industry, and
successful transition to postsecondary institutions or state-approved
apprenticeship training programs for work in the applicable industry
or other areas of study.
   (6) Evidence of coordination with appropriate feeder schools,
middle schools, high schools, state-approved apprenticeship training
programs, or other relevant entities within the area to ensure that
the project and programs complement career technical education
offerings in the area.
   (7) Evidence that upon completion of the project  that
 local educational agencies will meet all of their
obligations under Section 51228 relating to career technical
education.
   (k) Applications shall specify the number of program participants
expected to attend, the cost per program participant, financial
participation by industry partners in the construction and equipping
of the facility, commitment to accountability for outcomes and
participation, the strength and relevance of the educational plans to
the needs of industry for qualified technical employees applicable
to the economic development and environmental needs of the region in
which the project will be located, and coordination and articulation
with feeder schools, other high schools, community colleges, labor
organizations, and relevant community-based organizations.
   () The board shall implement this part pursuant to applicable
regulations and guidelines established by the council.
   102004.  (a) The council shall develop guidelines for competitive
grants for the purposes specified in Section 102003. Priority shall
be given to the following:
   (1) Projects serving pupils in any of grades 7 to 12, inclusive,
and dedicated to dropout prevention and career technical education.
   (2) Projects in communities containing a school that serves pupils
in any of grades 7 to 12, inclusive, and that ranks in the bottom
three deciles of the Academic Performance Index (API), or containing
a school participating in the Alternative Schools Accountability
Model (ASAM) with an API score that, if ranked in the API, would fit
within any of deciles 1 to 3, inclusive.
   (3) Projects in communities with higher than average rates of
dropout, low-income households and very low income households, crime,
incarceration, unemployment, foster care, teen pregnancy, or the
highest historic levels of exposure to air pollution. The council
shall grant not less than 20 percent of the moneys in the fund to
projects in communities in this category.
   (4) Projects initiated by the California Conservation Corps or a
certified local conservation corps.
   (b) The council may coordinate outreach efforts to communities
described in paragraph (a) with State Air Resources Board efforts,
under the requirements of the California Global Warming Solutions Act
of 2006 (Division 25.5 (commencing with Section 38500) of the Health
and Safety Code). The council may use appropriate state agency
personnel in administering the public outreach, education, technical
assistance, guideline development, and grant application review
provisions if these efforts are otherwise consistent with this part.
   (c) The council shall award and adopt guidelines for awarding
competitive grants pursuant to this part.
   (d) The council shall give special consideration to projects that
create partnerships among labor, management, and the public sector in
clean technology, renewable energy, or energy efficiency sectors.
   102005.  (a) Every proposed activity or project to be financed
pursuant to this part shall be in compliance with the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code).
   (b) Acquisitions of real property pursuant to this part shall be
from willing sellers.
   (c) Up to 5 percent of the funds allocated to a program pursuant
to this part may be used to pay the costs incurred in the
administration of that program.
   (d) The body awarding a contract for a public works project
financed in part from funds made available pursuant to this part
shall adopt and enforce, or contract with a third party to enforce, a
labor compliance program pursuant to subdivision (b) of Section
1771.5 of the Labor Code that shall be applicable to that public
works project.
   (e) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development and adoption of program guidelines and selection criteria
adopted pursuant to this part.
   (f) The chair of the council shall provide for an annual
independent audit of expenditures pursuant to this part to ensure
that all moneys are expended in accordance with this part.
      CHAPTER 3.  FISCAL PROVISIONS


   102006.  The council may incur indebtedness and issue and renew
negotiable bonds, notes, debentures, or other securities of any kind
or class. All indebtedness, however, evidenced, shall be payable
solely from moneys from the Public Interest Research, Development,
and Demonstration Fund created pursuant to Section 384 of the Public
Utilities Code and from the fund that are appropriated by the
Legislature in the annual Budget Act for the purposes of this section
and shall not exceed  the sum of five billion dollars
($5,000,000,000).   an unspecified amount. Proceeds from
the sale of the bonds, notes, debentures, or other securities shall
be deposited into the fund. 
   102007.  The Legislature may, by statute, authorize the council to
issue bonds, as defined in Section 102008, in excess of the amount
provided in Section 102006.
   102008.  (a) The council is authorized from time to time to issue
its negotiable bonds, notes, debentures, or other securities
(hereafter collectively called "bonds") for any of the purposes of
this part. In anticipating the sale of bonds as authorized in Section
102006, or as may be authorized pursuant to Section 102007, the
council may issue negotiable bond anticipation notes and may renew
the notes from time to time. The bond anticipation notes may be paid
from the proceeds of                                            sale
of the bonds of the council in anticipation of which they were
issued. Notes and agreements relating to the notes and bond
anticipation notes, collectively called notes, and the resolution or
resolutions authorizing the notes may contain any provisions,
conditions, or limitations that a bond, agreement relating to the
bond, and bond resolution of the council may contain. However, a note
or renewal of the note shall mature at a time not exceeding two
years from the date of issue of the original note.
   (b) Except as may otherwise be expressly provided by the council,
every issue of its bonds, notes, or other obligations shall be
general obligations of the board payable from any moneys appropriated
by the Legislature in the annual Budget Act from the Public Interest
Research, Development, and Demonstration Fund available for these
purposes and not otherwise pledged, subject only to any agreements
with the holders of particular bonds, notes, or other obligations
pledging any particular revenues or moneys and subject to any
agreements with any participating party. Notwithstanding that the
bonds, notes, or other obligations may be payable from a special
fund, they are for all purposes negotiable instruments, subject only
to the provisions of the bonds, notes, or other obligations for
registration.
   (c) Subject to the limitations in Sections 102006 and 102007, the
bonds may be issued as serial bonds or as term bonds, or the council,
in its discretion, may issue bonds of both types. The bonds shall be
authorized by resolution of the council and shall bear the date or
dates, mature at the time or times, not exceeding 50 years from their
respective dates, bear interest at the rate or rates, be payable at
the time or times, be in the denominations, be in the form, either
coupon or registered, carry the registration privileges, be executed
in a manner, be payable in lawful money of the United States of
America at a place or places, and be subject to terms of redemption,
as the resolution or resolutions may provide. The bonds or notes
shall be sold by the Treasurer within 60 days of receipt of a
certified copy of the council's resolution authorizing the sale of
the bonds. However, the council, at its discretion, may adopt a
resolution extending the 60-day period. The sales may be a public or
private sale, and for the price or prices and on the terms and
conditions, that the council shall determine after giving due
consideration to the recommendations of any participating party to be
assisted from the proceeds of the bonds or notes. Pending
preparation of the definitive bonds, the Treasurer may issue interim
receipts, certificates, or temporary bonds that shall be exchanged
for the definitive bonds. The Treasurer may sell bonds, notes, or
other evidence of indebtedness at a price below their par value.
However, the discount on a security sold pursuant to this section
shall not exceed 6 percent of the par value.
   (d) A resolution or resolutions authorizing bonds or an issue of
bonds may contain provisions that shall be a part of the contract
with the holders of the bonds to be authorized, as to all of the
following:
   (1) Pledging the full faith and credit of the council to secure
the payment of the bonds or of any particular issue of bonds, subject
to the agreements with bondholders as may then exist.
   (2) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year by the charges, and the use and disposition of the revenues.
   (3) The setting aside of reserves or sinking funds, and the
regulation and disposition of the reserves or sinking funds.
   (4) Limitations on the right of the council or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
   (5) Limitations on the purpose to which the proceeds of sale of an
issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or the
issue of the bonds.
   (6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
   (7) The procedure, if any, by which the terms of a contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent to the amendment or abrogation, and the
manner in which that consent may be given.
   (8) Limitations on expenditures for operating, administrative, or
other expenses of the council and board.
   (9) Defining the acts or omissions to act that constitute a
default in the duties of the council to holders of its obligations
and providing the rights and remedies of the holders in the event of
a default.
   (10) The mortgaging of a project and the site of the project for
the purpose of securing the bondholders.
   (11) The mortgaging of land, improvements, or other assets owned
by a program participant for the purpose of securing the bondholders.

   (12) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects and
program participants to receive the financing.
   (e) Neither the members of the council nor a person executing the
bonds or notes shall be liable personally on the bonds or notes or be
subject to personal liability or accountability by reason of the
issuance of the bond or note.
   (f) The council shall have power, out of any funds available for
these purposes, to purchase its bonds or notes. The council may hold,
pledge, cancel, or resell those bonds, subject to and in accordance
with agreements with bondholders.
   102009.  (a) In the discretion of the council, any bonds issued
under the provisions of this part may be secured by a trust agreement
by and between the council and a corporate trustee or trustees,
which may be the Treasurer or any trust company or bank having the
powers of a trust company within or without the state. The trust
agreement or the resolution providing for the issuance of the bonds
may pledge moneys appropriated by the Legislature in the annual
Budget Act from the Public Interest Research, Development, and
Demonstration Fund for the implementation of this part, or mortgage
the project or projects, or any portion thereof, to be financed out
of the proceeds of the bonds.
   (b) The trust agreement or resolution providing for the issuance
of bonds may contain provisions for protecting and enforcing the
rights and remedies of the bondholders as may be reasonable and
proper and not in violation of law, including particularly those
provisions that have been specifically authorized to be included in
any resolution or resolutions of the council authorizing bonds.
   (c) A bank or trust company doing business under the laws of this
state may act as depositary of the proceeds of bonds or of revenues
or other moneys and may furnish indemnifying bonds or pledge
securities as may be required by the council.
   (d) A trust agreement may set forth the rights and remedies of the
bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the council
may deem reasonable and proper for the security of the bondholders.
   (e) Notwithstanding any other provision of law, the Treasurer
shall not be deemed to have a conflict of interest by reason of
acting as trustee pursuant to this part.
   (f) All expenses incurred in carrying out the provisions of the
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.
   102010.  (a) Bonds issued under this part shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision of the state, other than the council, or a pledge of the
faith and credit of the state or of any political subdivision, other
than the council, but shall be payable solely from the funds provided
under the authority of this part. A bond shall contain on its face a
statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment of the principal of or interest
on this bond."
   (b) The issuance of bonds under the provisions of this part shall
not directly, indirectly, or contingently obligate the state or any
political subdivision of the state to levy or to pledge any form of
taxation therefor or to make any appropriation for their payment.
This section does not prevent the council from pledging its full
faith and credit to the payment of bonds or issue of bonds authorized
pursuant to this part.
   102011.  (a) The council is hereby authorized to provide for the
issuance of bonds of the council for the purpose of refunding any
bonds, notes, or other securities of the council then outstanding,
including the payment of any redemption premium thereon and any
interest accrued or to accrue to the earliest or subsequent date of
redemption, purchase, or maturity of those bonds, and, if deemed
advisable by the council, for the additional purpose of paying all or
any part of the cost of constructing and acquiring additions,
improvements, extensions, or enlargements of a project or any portion
of a project.
   (b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds, notes, or other securities may, in the discretion
of the council, be applied to the purchase or retirement at maturity
or redemption of outstanding bonds either on their earliest or any
subsequent redemption date or upon the purchase or retirement at the
maturity of the outstanding bonds and may, pending application, be
placed in escrow to be applied to the purchase or retirement at
maturity or redemption on the date as may be determined by the
council.
   (c) Pending the use, any escrowed proceeds may be invested and
reinvested by the Treasurer in obligations of, or guaranteed by, the
United States of America, or in certificates of deposit or time
deposits secured by obligations of, or guaranteed by, the United
States of America, maturing at a time or times as shall be
appropriate to ensure the prompt payment, as to principal, interest,
and redemption premium, if any, of the outstanding bonds to be so
refunded. The interest, income, and profits, if any, earned or
realized on any investment may also be applied to the payment of the
outstanding bonds to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of proceeds
and interest, income, and profits, if any, earned or realized on the
investments thereof may be returned to the council for use by it in
any lawful manner.
   (d) The portion of the proceeds of any bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested by the
Treasurer in obligations of, or guaranteed by, the United States of
America, or in certificates of deposit or time deposits secured by
obligations of, or guaranteed by, the United States of America,
maturing not later than the time or times when the proceeds will be
needed for the purpose of paying all or any part of the cost. The
interest, income, and profits, if any, earned or realized on that
investment may be applied to the payment of all or any part of the
cost or may be used by the council in any lawful manner.
   (e) A bond issued pursuant to this section shall be subject to the
provisions of this part in the same manner and to the same extent as
other bonds issued pursuant to this part.
   102012.  Bonds issued by the council are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, savings and loan
associations, and investment companies, for executors,
administrators, trustees, and other fiduciaries, for state school
funds, and for any funds that may be invested in county, municipal,
or school district bonds, and bonds are securities that may properly
and legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state for
any purpose for which the deposit of bonds or obligations of the
state, is now, or may hereafter be, authorized by law, including
deposits to secure public funds if, and only to the extent that,
evidence of indebtedness or debt securities of the participating
party receiving financing through the issuance of those bonds qualify
or are eligible for those purposes and uses.
   102013.  Liability shall not be incurred by the council beyond the
extent to which moneys have been provided under this part, except
that for the purposes of meeting the necessary expenses of initial
organization and operation until such date as the council derives
revenues or proceeds from bonds or notes as provided under this part,
the council may borrow money as needed for those expenses from the
State Energy Resources Conservation and Development Special Account
in the General Fund in the State Treasury. The borrowed moneys shall
be repaid with interest within a reasonable time after the council
receives revenues or proceeds from bonds or notes as provided under
this part.
   102014.  The State of California does hereby pledge to and agree
with the holders of any obligations issued under this part pursuant
to the provisions of this part, that the state will not limit or
alter the rights hereby vested in the council until those
obligations, together with the interest thereon, are fully met and
discharged and such contracts are fully performed on the part of the
council. This section does not preclude imitation or alteration if
and when adequate provision shall be made by law for the protection
of the holders of the obligations of the council. The council as
agent for the state is authorized to include this pledge and
undertaking for the state in those obligations.
   102015.  The powers granted to the council by this part may be
exercised without regard or reference to any department or agency of
the state. All other general or special laws, or parts thereof,
inconsistent with this part are hereby declared to be inapplicable to
the provisions of this part. Nothing contained in this part shall be
interpreted to exempt the construction or acquisition of any project
by any program participant from compliance with all applicable
local, state, or federal laws and regulations.