BILL NUMBER: SB 1340	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 18, 2010
	AMENDED IN ASSEMBLY  AUGUST 2, 2010
	AMENDED IN ASSEMBLY  JUNE 17, 2010
	AMENDED IN SENATE  APRIL 22, 2010

INTRODUCED BY   Senator Kehoe
   (Coauthors: Assembly Members Bradford, Coto, Davis, and Solorio)


                        FEBRUARY 19, 2010

   An act to amend Section 44272 of the Health and Safety Code, to
amend Sections 26100, 26104, 26121, and 26123 of the Public Resources
Code, and to  amend Sections 5898.12, 5898.14, 5898.20,
5898.21, and 5898.22 of   add Sections 5898.15, 5898.23,
and 5899.3 to  the Streets and Highways Code, relating to
energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1340, as amended, Kehoe. Energy.
   (1) Existing law establishes the Alternative and Renewable Fuel
and Vehicle Technology Program, administered by the State Energy
Resources Conservation and Development Commission (Energy
Commission), to provide to specified entities, upon appropriation by
the Legislature, grants, loans, loan guarantees, revolving loans, or
other appropriate measures, for the development and deployment of
innovative technologies that transform California's fuel and vehicle
types to help attain the state's climate change goals. Existing law
specifies that only certain projects or programs are eligible for
funding.
   This bill would, additionally, specify projects eligible for
funding under the program to include a cost-effective program to
provide funding for homeowners who purchase an electric vehicle to
offset costs associated with modifying electrical sources to include
a residential plug-in electric vehicle charging station.
   (2) Existing law authorizes a public agency and a property owner
to enter into voluntary contractual assessments to finance the
installation of distributed generation renewable energy sources or
energy or water efficiency improvements that are permanently affixed
on real property.
    This bill would expand the use of the voluntary contractual
assessment to finance electric vehicle charging infrastructure
affixed on real property. The bill would prohibit a public agency
from permitting a property owner to participate in a contractual
assessment program if the total amount of assessments and taxes on
the property exceeds 5% of the property's appraised market value, as
specified. The bill would also require the preliminary report issued
in connection with the contractual assessment  program to
include criteria for determining the creditworthiness of a property
owner, and   safeguards to be used to limit the total annual
property tax and assessments on the property, as specified. 

   Existing 
    (3)     Existing  law requires the
California Alternative Energy and Advanced Transportation Financing
Authority to establish a Property Assessed Clean Energy (PACE)
Reserve program to assist local jurisdictions in financing the
installation of distributed generation renewable energy sources or
energy or water efficiency improvements meeting specified
requirements that are permanently affixed on real property through
the use of a voluntary contractual assessment. 
   This bill would expand the use of the voluntary contractual
assessment to finance electric vehicle charging infrastructure
affixed on real property and would declare the intent of the
Legislature to limit participation in this assessment program when it
would result in an inability of the property owner to pay property
taxes or in total taxes and assessments exceeding 5% of the property
value. The 
   This  bill would expand the PACE Reserve program to
assist local jurisdictions in financing the installation of electric
vehicle charging infrastructure. 
   (4) This bill would incorporate additional changes in Section
44272 of the Health and Safety Code proposed by AB 1106, that would
become operative only if AB 1106 and this bill are both chaptered and
become operative on or before January 1, 2011, and this bill is
chaptered last. 
   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.  Section 44272 of the Health and Safety Code is amended
to read:
   44272.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The commission shall implement the
program by regulation pursuant to the requirements of Chapter 3.5
(commencing with Section 11340) of  Part 1 of  Division 3 of
Title 2 of the Government Code. The program shall provide, upon
appropriation by the Legislature, competitive grants, revolving
loans, loan guarantees, loans, or other appropriate funding measures,
to public agencies, vehicle and technology entities, businesses and
projects, public-private partnerships, workforce training
partnerships and collaboratives, fleet owners, consumers,
recreational boaters, and academic institutions to develop and deploy
innovative technologies that transform California's fuel and vehicle
types to help attain the state's climate change policies. The
emphasis of this program shall be to develop and deploy technology
and alternative and renewable fuels in the marketplace, without
adopting any one preferred fuel or technology.
   (b) A project funded by the commission shall be approved at a
noticed public hearing of the commission and shall be consistent with
the priorities established by the investment plan adopted pursuant
to Section 44272.5.
   (c) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program, based on the following criteria, as
applicable:
   (1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
   (2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
   (3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
   (4) The project's ability to decrease, on a life-cycle basis, the
discharge of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
   (5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
   (6) The project provides nonstate matching funds.
   (7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
   (8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
   (9) The project's ability to reduce on a life-cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
   (10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
   (11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
   (d) Only the following shall be eligible for funding:
   (1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
   (2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
   (3) Projects to produce alternative and renewable low-carbon fuels
in California.
   (4) Projects to decrease the overall impact of an alternative and
renewable fuel's life cycle carbon footprint and increase
sustainability.
   (5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.
   (6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
battery electric vehicle technology, fuel cell technology, and
conversions of hybrid technology to plug-in technology through the
installation of safety certified supplemental battery modules.
   (7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, supply-chain development, and research related to the
pedestrian safety impacts of vehicle technologies and alternative and
renewable fuels.
   (8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
   (9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
   (10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
   (11) Block grants administered by not-for-profit technology
entities for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
   (12) Life cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
technology assessments performed by a state agency to determine the
impacts of increasing the use of low-carbon transportation fuels and
technologies, and to assist in the preparation of the investment plan
and program implementation.
   (13) A program to provide funding for homeowners who purchase a
plug-in electric vehicle to offset costs associated with modifying
electrical sources to include a residential plug-in electric vehicle
charging station. In establishing this program, the commission shall
consider funding criteria to maximize the public benefit of the
program.
   (e) The commission may make a single source or sole source award
pursuant to this section for applied research. The same requirements
set forth in Section 25620.5 of the Public Resources Code shall apply
to awards made on a single source basis or a sole source basis. This
subdivision does not authorize the commission to make a single
source or sole source award for a project or activity other than for
applied research.
   (f) Until January 1, 2012, the commission may contract with the
Treasurer to expend funds through programs implemented by the
Treasurer, if that expenditure is consistent with all of the
requirements of this chapter.
   SEC. 1.5.    Section 44272 of the   Health
and Safety Code   is amended to read: 
   44272.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The commission shall implement the
program by regulation pursuant to the requirements of Chapter 3.5
(commencing with Section 11340) of  Part 1 of  Division 3 of
Title 2 of the Government Code. The program shall provide, upon
appropriation by the Legislature, competitive grants, revolving
loans, loan guarantees, loans, or other appropriate funding measures,
to public agencies, vehicle and technology entities, businesses and
projects, public-private partnerships, workforce training
partnerships and collaboratives, fleet owners, consumers,
recreational boaters, and academic institutions to develop and deploy
innovative technologies that transform California's fuel and vehicle
types to help attain the state's climate change policies. The
emphasis of this program shall be to develop and deploy technology
and alternative and renewable fuels in the marketplace, without
adopting any one preferred fuel or technology.
   (b) A project funded by the commission shall be approved at a
noticed public hearing of the commission and shall be consistent with
the priorities established by the investment plan adopted pursuant
to Section 44272.5.
   (c) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program, based on the following criteria, as
applicable:
   (1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
   (2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
   (3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
   (4) The project's ability to decrease, on a  life-cycle
  life cycle  basis, the discharge of water
pollutants or any other substances known to damage human health or
the environment, in comparison to the production and use of
California Phase 2 Reformulated Gasoline or diesel fuel produced and
sold pursuant to California diesel fuel regulations set forth in
Article 2 (commencing with Section 2280) of Chapter 5 of Division 3
of Title 13 of the California Code of Regulations.
   (5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
   (6) The project provides nonstate matching funds.
   (7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
   (8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
   (9) The project's ability to reduce on a  life-cycle
  life cycle  assessment greenhouse gas emissions
by at least 10 percent, and higher percentages in the future, from
current reformulated gasoline and diesel fuel standards established
by the state board.
   (10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
   (11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
   (d) Only the following shall be eligible for funding:
   (1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
   (2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
   (3) Projects to produce alternative and renewable low-carbon fuels
in California.
   (4) Projects to decrease the overall impact of an alternative and
renewable fuel's life cycle carbon footprint and increase
sustainability.
   (5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.
   (6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
battery electric vehicle technology, fuel cell technology, and
conversions of hybrid technology to plug-in technology through the
installation of safety certified supplemental battery modules.
   (7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, supply-chain development, and research related to the
pedestrian safety impacts of vehicle technologies and alternative and
renewable fuels.
   (8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
   (9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
   (10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
   (11) Block grants administered by not-for-profit technology
entities for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
   (12)  Life-cycle   Life cycle  and
multimedia analyses, sustainability and environmental impact
evaluations, and market, financial, and technology assessments
performed by a state agency to determine the impacts of increasing
the use of low-carbon transportation fuels and technologies, and to
assist in the preparation of the investment plan and program
implementation. 
   (13) A program to provide funding for homeowners who purchase a
plug-in electric vehicle to offset costs associated with modifying
electrical sources to include a residential plug-in electric vehicle
charging station. In establishing this program, the commission shall
consider funding criteria to maximize the public benefit of the
program. 
   (e) The commission may make a single source or sole source award
pursuant to this section for applied research. The same requirements
set forth in Section 25620.5 of the Public Resources Code shall apply
to awards made on a single source basis or a sole source basis. This
subdivision does not authorize the commission to make a single
source or sole source award for a project or activity other than for
applied research.  The commission may pursuant to this
subdivision make a single source or sole source award for the applied
research to be conducted by the Quiet Motorized Road Vehicle and
Safe Mobility Committee created pursuant to Section 25227 of the
Public Resources Code, if Senate Bill 1174 of the 2007-08 Regular
Session, which would add that section, is enacted. 
   (f) Until January 1, 2012, the commission may  contract
  do both of the following: 
   (1)     Contract  with the Treasurer to
expend funds through programs implemented by the Treasurer, if
 that   the  expenditure is consistent with
all of the requirements of this chapter. 
   (2) Contract with small business financial development
corporations established by the Business, Transportation and Housing
Agency to expend funds through the Small Business Loan Guarantee
Program if the expenditure is consistent with all of the requirements
of the program and this chapter. 
  SEC. 2.  Section 26100 of the Public Resources Code is amended to
read:
   26100.  (a) The Legislature finds and declares all of the
following:
   (1) Property Assessed Clean Energy (PACE) financing has been
pioneered by municipalities and counties in California as a way for
home and small business owners to finance voluntary energy and water
efficiency and clean energy improvements.
   (2) PACE financing was pioneered in the City of Berkeley, while
the City and County of San Francisco, City of San Diego, City of Palm
Desert, Sonoma County, and the California Statewide Communities
Development Authority (CSCDA) have already initiated or are working
to launch additional programs.
   (3) Seventeen other states, including Colorado and New York, have
also enacted enabling PACE legislation.
   (4) The public subsidy provided by the PACE financing is justified
by the benefits received in job creation, lower energy demand, and
spurring new clean industries that will grow the economy.
   (b) It is the intent of the Legislature to assist local
jurisdictions in financing the installation of distributed generation
renewable energy sources, electric vehicle charging infrastructure,
or energy or water efficiency improvements that are permanently fixed
to real property through the use of voluntary contractual
assessments.
   (c) It is not the intent of the Legislature to create any debt,
liability, or obligation on the part of the state in assisting local
jurisdictions pursuant to this division.
  SEC. 3.  Section 26104 of the Public Resources Code is amended to
read:
   26104.  "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, electric vehicle charging infrastructure, 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.
  SEC. 4.  Section 26121 of the Public Resources Code is amended to
read:
   26121.  To qualify for assistance pursuant to this division, the
PACE program shall require all of the following:
   (a) The interest rate on the PACE bond does not exceed a
percentage as determined by the authority to be appropriate.
   (b) Minimum legal loan structure and credit underwriting criteria
as determined by the authority are met.
   (c) Proceeds of the PACE bonds are used to finance qualified
energy and water efficiency, electric vehicle charging
infrastructure, and clean energy improvements.
   (d) The improvement financed is for a residential project of three
units or fewer, or a commercial project that costs less than
twenty-five thousand dollars ($25,000) in total.
  SEC. 5.  Section 26123 of the Public Resources Code is amended to
read:
   26123.  (a) In evaluating eligibility, the authority shall
consider whether the applicant's PACE program includes the following
conditions:
   (1) Loan recipients are legal owners of underlying property.
   (2) Loan recipients are current on mortgage and property tax
payments.
   (3) Loan recipients are not in default or in bankruptcy
proceedings.
   (4) Loans are for less than 10 percent of the value of the
property.
   (5) The property is within the geographical boundaries of the PACE
program.
   (6) The program offers financing for energy efficiency
improvements or electric vehicle charging infrastructure.
   (7) Improvements financed by the program follow applicable
standards of energy efficiency retrofit work, including any
guidelines adopted by the State Resources Conservation and
Development Commission.
   (b) In evaluating an application, the authority shall consider all
of the following factors:
   (1) The use by the PACE program of best practices, adopted by the
authority, to qualify eligible properties for participation in
underwriting the PACE program.
   (2) The cost efficiency of the applicant's PACE program, including
bond issuance.
   (3) The projected number of jobs created by the PACE program.
   (4) The applicant's PACE program requirements for quality
assurance and consumer protection as related to achieving efficiency
and clean energy production.
   (5) The mechanisms by which savings produced by this program are
passed on to the property owners.
   (6) Any other factors deemed appropriate by the authority.
   SEC. 6.    Section 5898.15 is added to the  
Streets and Highways Code   , to read:  
   5898.15.  (a) A public agency shall not permit a property owner to
participate in any program established pursuant to this chapter if
the owner's participation would result in the total amount of any
annual property taxes and assessments exceeding 5 percent of the
property's appraised market value, as determined at the time of
approval of the owner's contractual assessment.
   (b) Nothing in this chapter shall be construed to void or
otherwise release a property owner from the contractual obligations
incurred by a contractual assessment on a property, particularly in
the event that the total amount of annual property taxes and
assessments exceeds 5 percent of a property's appraised value after
the property owner has entered into a contractual assessment pursuant
to this chapter. 
   SEC. 7.    Section 5898.23 is added to the  
Streets and Highways Code   , to read:  
   5898.23.  For purposes of the report required pursuant to Section
5898.22, the statement of public agency policies required pursuant to
subdivision (c) of that section shall also include a brief
description of criteria for determining the creditworthiness of a
property owner, and safeguards that will be used to ensure that the
total annual property tax and assessments on the property will not
exceed 5 percent of the property's appraised market value, as
determined at the time of approval for the owner's contractual
assessment. 
   SEC. 8.    Section 5899.3 is added to the  
Streets and Highways Code   , to read:  
   5899.3.  (a) The Legislature finds and declares all of the
following:
   (1) This chapter should be used to finance the installation of
electric vehicle charging infrastructure that is permanently fixed to
residential, commercial, industrial, agricultural, or other real
property.
   (2) Electric vehicle charging infrastructure is a necessary
component to transitioning to increase electric vehicle usage.
Electric vehicles and their electric charging infrastructure also
address the issue of global climate change.
   (3) The upfront cost of installing electric vehicle charging
infrastructure improvements for residential, commercial, industrial,
agricultural, or other real property prevents many property owners
from making those improvements. To make those improvements more
affordable and to promote the installation of those improvements, it
is necessary to authorize an alternative procedure for authorizing
assessments to finance the cost of installing electric vehicle
charging infrastructure.
   (4) The Legislature declares that a public purpose will be served
by a voluntary contractual assessment program that provides the
legislative body of a public agency with the authority to finance the
installation of electric vehicle charging infrastructure that is
permanently fixed to residential, commercial, industrial,
agricultural, or other real property.
   (b) For the purpose of financing the installation of electric
vehicle charging infrastructure, "public agency" means a county,
city, city and county, or a municipal utility district, an irrigation
district, or public utility district that owns and operates an
electric distribution system. The definition of "city" in Section
5005 shall not apply to this section.
   (c) The legislative body of any public agency may designate an
area, in the manner provided pursuant to Section 5898.20, within
which authorized public agency officials and property owners may
enter into voluntary contractual assessments to finance the
installation of electric vehicle charging infrastructure that is
permanently fixed
to real property pursuant to this chapter.
   (d) For purposes of establishing a voluntary contractual
assessment program relating to electric vehicle charging
infrastructure, the legislative body shall make the determinations
required pursuant to Section 5898.20 by adopting a resolution
indicating its intention to do so. The resolution of intention shall
identify the kinds of electric vehicle charging infrastructure that
may be financed and shall include all of the information that is
required pursuant to subdivision (b) of Section 5898.20, including,
but not limited to, directing an appropriate public agency official
to prepare a report pursuant to Section 5898.22.
   (e) For purposes of the report required pursuant to Section
5898.22, relating to a voluntary contractual assessment program for
electric vehicle charging infrastructure, the designated public
agency official shall satisfy the requirements of paragraph (1) of
subdivision (c) of Section 5898.22 by identifying the types of
electric vehicle charging infrastructure that may be financed through
the use of contractual assessments.
   (f) Notwithstanding any other provision of this chapter, upon the
written consent of an authorized public agency official, the proposed
arrangements for financing the program pertaining to the
installation of electric vehicle charging infrastructure that is
permanently fixed to real property may authorize the property owner
to purchase directly the related equipment and materials for the
installation of electric vehicle charging infrastructure and to
contract directly for the installation of electric vehicle charging
infrastructure that is permanently fixed to the property owner's
residential, commercial, industrial, agricultural, or other real
property. 
   SEC. 9.    Section 1.5 of this bill incorporates
amendments to Section 44272 of the Health and Safety Code proposed by
this bill and AB 1106. It shall only become operative if (1) both
bills are enacted and become effective on or before January 1, 2011,
(2) each bill amends Section 44272 of the Health and Safety Code, and
(3) this bill is enacted after AB 1106, in which case Section 44272
of the Health and Safety Code, as amended by AB 1106, shall remain
operative only until the operative date of this bill, at which time
Section 1.5 of this bill shall become operative, and Section 1 of
this bill shall not become operative.  
  SEC. 6.    Section 5898.12 of the Streets and
Highways Code is amended to read:
   5898.12.  (a) It is the intent of the Legislature that this
chapter should be used to finance public improvements to lots or
parcels that are developed and for which the costs and time delays
involved in creating an assessment district pursuant to other
provisions of this division or any other law would be prohibitively
large relative to the cost of the public improvements to be financed.

   (b) It is also the intent of the Legislature that this chapter
should be used to finance the installation of distributed generation
renewable energy sources, electric vehicle charging infrastructure,
or energy efficiency improvements that are permanently fixed to
residential, commercial, industrial, agricultural, or other real
property.
   (c) It is also the intent of the Legislature to address chronic
water needs throughout California by permitting voluntary individual
efforts to improve water efficiency. The Legislature further intends
that this chapter should be used to finance the installation of water
efficiency improvements that are permanently fixed to residential,
commercial, industrial, agricultural, or other real property,
including, but not limited to, recycled water connections, synthetic
turf, cisterns for stormwater recovery, and permeable pavement.
   (d) It is also the intent of the Legislature that a public agency
in the process of establishing an assessment program, to the extent
feasible, use a good faith effort to provide advance notice of the
proposed program to water and electric service providers in the
relevant service area, as set forth in Section 5898.24, to allow the
most efficient coordination and collaboration between the public
agency and water and electric service providers.
   (e) This chapter shall not be used to finance facilities for
parcels that are undergoing development.
   (f) It is the intent of the Legislature that participation in an
assessment program shall not have the effect of making the
participant unable to pay the property taxes and assessments on the
property, therefore, a property owner shall not be eligible to
participate in any program established pursuant to this chapter if
participation would result in the total amount of any annual property
taxes and assessments exceeding 5 percent of the property's
appraised market value.
   (g) This chapter shall not be used to finance the purchase or
installation of appliances that are not permanently fixed to
residential, commercial, industrial, agricultural, or other real
property.
   (h) Assessments may be levied pursuant to this chapter only with
the free and willing consent of the owner of each lot or parcel on
which an assessment is levied at the time the assessment is levied.
 
  SEC. 7.    Section 5898.14 of the Streets and
Highways Code is amended to read:
   5898.14.  (a) The Legislature finds all of the following:
   (1) Energy and water conservation efforts, including the promotion
of energy efficiency improvements to residential, commercial,
industrial, agricultural, or other real property are necessary to
address the issue of global climate change.
   (2) Electric vehicle charging infrastructure is a necessary
component to transitioning to increase electric vehicle usage.
Electric vehicles and their electric charging infrastructure also
address the issue of global climate change.
   (3) The upfront cost of making residential, commercial,
industrial, agricultural, or other real property more energy and
water efficient prevents many property owners from making those
improvements. To make those improvements more affordable and to
promote the installation of those improvements, it is necessary to
authorize an alternative procedure for authorizing assessments to
finance the cost of energy and water efficiency improvements.
   (b) The Legislature declares that a public purpose will be served
by a voluntary contractual assessment program that provides the
legislative body of any public agency with the authority to finance
the installation of distributed generation renewable energy sources,
electric vehicle charging infrastructure, and energy or water
efficiency improvements that are permanently fixed to residential,
commercial, industrial, agricultural, or other real property.
 
  SEC. 8.    Section 5898.20 of the Streets and
Highways Code is amended to read:
   5898.20.  (a) (1) The legislative body of any public agency may
determine that it would be convenient and advantageous to designate
an area within the public agency, which may encompass the entire
public agency or a lesser portion, within which authorized public
agency officials and property owners may enter into voluntary
contractual assessments for public improvements and to make financing
arrangements pursuant to this chapter.
   (2) The legislative body of any public agency may also determine
that it would be convenient, advantageous, and in the public interest
to designate an area within the public agency, which may encompass
the entire public agency or a lesser portion, within which authorized
public agency officials and property owners may enter into voluntary
contractual assessments to finance the installation of distributed
generation renewable energy sources, electric vehicle charging
infrastructure, or energy or water efficiency improvements that are
permanently fixed to real property pursuant to this chapter.
   (b) The legislative body shall make these determinations by
adopting a resolution indicating its intention to do so. The
resolution of intention shall include a statement that the public
agency proposes to make voluntary contractual assessment financing
available to property owners, shall identify the kinds of public
works, distributed generation renewable energy sources, electric
vehicle charging infrastructure, or energy or water efficiency
improvements that may be financed, shall describe the boundaries of
the area within which voluntary contractual assessments may be
entered into, and shall briefly describe the proposed arrangements
for financing the program, including a brief description of criteria
for determining the creditworthiness of a property owner. The
resolution of intention shall state that it is in the public interest
to finance the installation of distributed generation renewable
energy sources, electric vehicle charging infrastructure, or energy
or water efficiency improvements, or any combination of these
sources, infrastructure, and improvements, pursuant to paragraph (2)
of subdivision (a), if applicable. The resolution shall state that a
public hearing should be held at which interested persons may object
to or inquire about the proposed program or any of its particulars,
and shall state the time and place of the hearing. The resolution
shall direct an appropriate public agency official to prepare a
report pursuant to Section 5898.22 and to enter into consultations
with the county auditor's office or county controller's office in
order to reach agreement on what additional fees, if any, will be
charged to the city or county for incorporating the proposed
voluntary contractual assessments into the assessments of the general
taxes of the city or county on real property.
   (c) As used in this chapter, each of the following terms shall
have the following meaning:
   (1) "Efficiency improvements" means permanent improvements fixed
to residential, commercial, industrial, agricultural, or other real
property.
   (2) "Legislative body" means the governing body of a public
agency.
   (3) (A) For the purpose of financing the installation of water
efficiency improvements, "public agency" means a city, county, city
and county, municipal utility district, community services district,
sanitary district, sanitation district, or water district, as defined
in Section 20200 of the Water Code. The definition of "city" in
Section 5005 shall not apply to this subparagraph.
   (B) For the purpose of financing the installation of distributed
generation renewable energy sources, electric vehicle charging
infrastructure, or energy efficiency improvements, "public agency"
means a county, city, city and county, or a municipal utility
district, an irrigation district, or public utility district that
owns and operates an electric distribution system. The definition of
"city" in Section 5005 shall not apply to this subparagraph.
   (C) For the purpose of financing the public improvements, "public
agency" means a city as defined in Section 5005.  
  SEC. 9.    Section 5898.21 of the Streets and
Highways Code is amended to read:
   5898.21.  Notwithstanding any other provision of this chapter,
upon the written consent of an authorized public agency official, the
proposed arrangements for financing the program pertaining to the
installation of distributed generation renewable energy sources,
electric vehicle charging infrastructure, or energy or water
efficiency improvements that are permanently fixed to real property
may authorize the property owner to purchase directly the related
equipment and materials for the installation of distributed
generation renewable energy sources, electric vehicle charging
infrastructure, or energy or water efficiency improvements and to
contract directly for the installation of distributed generation
renewable energy sources, electric vehicle charging infrastructure,
or energy or water efficiency improvements that are permanently fixed
to the property owner's residential, commercial, industrial,
agricultural, or other real property.  
  SEC. 10.    Section 5898.22 of the Streets and
Highways Code is amended to read:
   5898.22.  The report shall contain all of the following:
   (a) A map showing the boundaries of the territory within which
voluntary contractual assessments are proposed to be offered.
   (b) A draft contract specifying the terms and conditions that
would be agreed to by a property owner within the voluntary
contractual assessment area and the public agency.
   (c) A statement of public agency policies concerning voluntary
contractual assessments including all of the following:
   (1) Identification of types of facilities, distributed generation
renewable energy sources, electric vehicle charging infrastructure,
or energy or water efficiency improvements that may be financed
through the use of contractual assessments.
   (2) Identification of a public agency official authorized to enter
into voluntary contractual assessments on behalf of the public
agency.
   (3) A maximum aggregate dollar amount of voluntary contractual
assessments.
   (4) A method for setting requests from property owners for
financing through voluntary contractual assessments in priority order
in the event that requests appear likely to exceed the authorization
amount.
   (5) A brief description of criteria for determining the
creditworthiness of a property owner, and of the safeguards that will
be used to ensure that the total annual property tax and assessments
on the property will not exceed 5 percent of the property's
appraised market value.
   (d) A plan for raising a capital amount required to pay for work
performed pursuant to voluntary contractual assessments. The plan may
include amounts to be advanced by the public agency through funds
available to it from any source. The plan may include the sale of a
bond or bonds or other financing relationship pursuant to Section
5898.28. The plan shall include a statement of or method for
determining the interest rate and time period during which
contracting property owners would pay any assessment. The plan shall
provide for any reserve fund or funds. The plan shall provide for the
apportionment of all or any portion of the costs incidental to
financing, administration, and collection of the voluntary
contractual assessment program among the consenting property owners
and the public agency.
   (e) A report on the results of the consultations with the county
auditor's office or county controller's office concerning the
additional fees, if any, that will be charged to the city or county
for incorporating the proposed voluntary contractual assessments into
the assessments of the general taxes of the city or county on real
property, and a plan for financing the payment of those fees.