BILL NUMBER: ABX1 14 CHAPTERED
BILL TEXT
CHAPTER 9
FILED WITH SECRETARY OF STATE AUGUST 2, 2011
APPROVED BY GOVERNOR AUGUST 2, 2011
PASSED THE SENATE JULY 7, 2011
PASSED THE ASSEMBLY JULY 14, 2011
AMENDED IN SENATE JULY 1, 2011
AMENDED IN SENATE MAY 10, 2011
AMENDED IN ASSEMBLY MARCH 21, 2011
AMENDED IN ASSEMBLY MARCH 1, 2011
INTRODUCED BY Assembly Members Skinner, Bradford, Chesbro, and V.
Manuel Pérez
(Coauthor: Assembly Member John A. Pérez)
FEBRUARY 16, 2011
An act to amend Sections 26003, 26102, 26140, and 26141 of, to
amend the heading of Division 16.2 (commencing with Section 26100)
of, to add Sections 26100.5 and 26103.5 to, and to add Chapter 2.5
(commencing with Section 26130) to Division 16.2 of, the Public
Resources Code, relating to energy, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 14, Skinner. Energy: energy upgrade financing.
(1) 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.
Existing law, until January 1, 2015, appropriates up to $50,000,000
from the Renewable Resource Trust Fund to the authority for the
purposes of the PACE Reserve program and authorizes the authority to
expend up to $300,000 of that appropriation for initial
administrative costs in implementing the PACE Reserve program.
This bill would additionally require the authority to administer a
Clean Energy Upgrade Program that would be developed by the State
Energy Resources Conservation and Development Commission and the
authority to reduce the costs to property owners of a loan provided
by a financial institution that has a loan program that satisfies the
specified requirements. Because this bill would authorize the use of
the money appropriated for the PACE Reserve program for the Clean
Energy Upgrade Program, this bill would make an appropriation. The
bill would require the authority to report annually specified
information regarding the program. The bill would increase the amount
of the appropriation that may be expended for initial administrative
costs to $550,000, thereby making an appropriation.
(2) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 26003 of the Public Resources Code is amended
to read:
26003. As used in this division, unless the context otherwise
requires:
(a) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
(b) "Cost" as applied to a project or portion of the project
financed under this division means all or part of the cost of
construction and acquisition of all lands, structures, real or
personal property or an interest in the real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project; the cost of demolishing or removing any
buildings or structures on land so acquired, including the cost of
acquiring any lands to which those buildings or structures may be
moved; the cost of all machinery, equipment, and furnishings,
financing charges, interest prior to, during, and for a period after,
completion of construction as determined by the authority; the cost
of the purchase or sale of energy derived from an alternative source
pursuant to subdivision (g) of Section 26011; provisions for working
capital; reserves for principal and interest and for extensions,
enlargements, additions, replacements, renovations, and improvements;
the cost of architectural, engineering, financial, accounting,
auditing and legal services, plans, specifications, estimates,
administrative expenses, and other expenses necessary or incident to
determining the feasibility of constructing any project or incident
to the construction, acquisition, or financing of a project.
(c) (1) "Alternative sources" means the application of
cogeneration technology, as defined in Section 25134; the
conservation of energy; or the use of solar, biomass, wind,
geothermal, hydroelectricity under 30 megawatts, or any other source
of energy, the efficient use of which will reduce the use of fossil
and nuclear fuels.
(2) "Alternative sources" does not include a hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
(d) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution reduction, and
transportation efficiency. Those technologies may include, but are
not limited to, any of the following:
(1) Intelligent vehicle highway systems.
(2) Advanced telecommunications for transportation.
(3) Command, control, and communications for public transit
vehicles and systems.
(4) Electric vehicles and ultralow-emission vehicles.
(5) High-speed rail and magnetic levitation passenger systems.
(6) Fuel cells.
(e) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
(1) Loans, loan loss reserves, interest rate reductions, proceeds
of bonds issued by the authority, insurance, guarantees or other
credit enhancements or liquidity facilities, contributions of money,
property, labor, or other items of value, or any combination thereof,
as determined by, and approved by the resolution of, the board.
(2) Any other type of assistance the authority determines is
appropriate.
(f) "Participating party" means either of the following:
(1) A person, or an entity or group of entities engaged in
business or operations in the state, whether organized for profit or
not for profit, that does either of the following:
(A) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(B) Participates in the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
(2) A public agency or nonprofit corporation that does either of
the following:
(A) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(B) Participates in the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
(g) (1) "Project" means a land, building, improvement to the land
or building, rehabilitation, work, property, or structure, real or
personal, stationary or mobile, including, but not limited to,
machinery and equipment, whether or not in existence or under
construction, that utilizes, or is designed to utilize, an
alternative source, or that is utilized for the design, technology
transfer, manufacture, production, assembly, distribution, or service
of advanced transportation technologies, or an arrangement for the
purchase, including prepayment, or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
(2) "Project," for the purposes of Section 26011.8, means any
tangible personal property that is utilized for the design,
manufacture, production, or assembly of advanced transportation
technologies or alternative source products, components, or systems.
(h) "Public agency" means a federal or state agency, department,
board, authority, state or community college, university, or
commission, or a county, city and county, city, regional agency,
public district, school district, or other political entity.
(i) (1) "Renewable energy" means a device or technology that
conserves or produces heat, processes heat, space heating, water
heating, steam, space cooling, refrigeration, mechanical energy,
electricity, or energy in any form convertible to these uses, that
does not expend or use conventional energy fuels, and that uses any
of the following electrical generation technologies:
(A) Biomass.
(B) Solar thermal.
(C) Photovoltaic.
(D) Wind.
(E) Geothermal.
(2) For purposes of this subdivision, "conventional energy fuel"
means any fuel derived from petroleum deposits, including, but not
limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas, or nuclear fissionable materials.
(3) Notwithstanding paragraph (1), for purposes of this section,
"renewable energy" also means ultralow-emission equipment for energy
generation based on thermal energy systems such as natural gas
turbines and fuel cells.
(j) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from a project, or the sale, lease, or other disposition of
alternative source or advanced transportation technology facilities,
or the making of loans to finance alternative source or advanced
transportation technology facilities, and any income or revenue
derived from the investment of money in any fund or account of the
authority.
SEC. 2. The heading of Division 16.2 (commencing with Section
26100) of the Public Resources Code is amended to read:
DIVISION 16.2. Property Assessed Clean Energy (PACE) And CLEAN
ENERGY Financing Assistance
SEC. 3. Section 26100.5 is added to the Public Resources Code, to
read:
26100.5. The Legislature further finds and declares both of the
following:
(a) Actions by federally chartered home loan entities have
frustrated efforts to accelerate the implementation of the PACE
financing program, creating a need to establish effective alternative
approaches that can be rapidly deployed to advance the purposes of
this division.
(b) Among the most promising alternatives that can be implemented
rapidly are those intended to increase access to capital for projects
that advance the purposes of this division.
SEC. 4. Section 26102 of the Public Resources Code is amended to
read:
26102. "Applicant" means, for the purposes of Chapter 2
(commencing with Section 26120), a public agency as defined in
paragraph (3) of subdivision (c) of Section 5898.20 of the Streets
and Highways Code and, for the purposes of Chapter 2.5 (commencing
with Section 26130), a financial institution providing a loan
pursuant to that chapter to finance the installation of distributed
generation renewable energy sources, electric vehicle charging
infrastructure, or energy or water efficiency improvements.
SEC. 5. Section 26103.5 is added to the Public Resources Code, to
read:
26103.5. "Clean Energy Upgrade Program" means a statewide energy
and water efficiency and renewable energy generation building
retrofit financing program developed by the State Energy Resources
Conservation and Development Commission and the authority pursuant to
Section 26130.
SEC. 6. Chapter 2.5 (commencing with Section 26130) is added to
Division 16.2 of the Public Resources Code, to read:
CHAPTER 2.5. CLEAN ENERGY UPGRADE PROGRAM
26130. The authority shall administer a Clean Energy Upgrade
Program to reduce overall costs to the property owners of a loan
provided by an applicant to finance the installation of distributed
generation renewable energy sources, electric vehicle charging
infrastructure, or energy or water efficiency improvements on real
property by providing a reserve or other financial assistance at a
level to be determined by the State Energy Resources Conservation and
Development Commission and the authority. Improvements financed
pursuant to this program shall be 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.
26131. (a) The authority shall adopt regulations governing the
implementation of this chapter, including quality assurance pursuant
to subdivision (b) of Section 26132, at a publicly noticed meeting.
Notwithstanding any other law, regulations adopted pursuant to this
section may be adopted as emergency regulations pursuant to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.
(b) For the purposes of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
including Section 11349.6 of that code, the Office of Administrative
Law shall consider the adoption of the regulations pursuant to
subdivision (a) to be necessary for the immediate preservation of the
public peace, health and safety, and general welfare.
26132. (a) An applicant shall submit to the authority an
application providing a detailed description of the loan program to
finance the installation of distributed generation renewable energy
sources, electric vehicle charging infrastructure, or energy or water
efficiency improvements on real property, a detailed description of
the transactional activities associated with the loan issuance,
including all transactional costs, and other information deemed
necessary by the authority.
(b) The authority shall ensure that all improvements financed by
the program meet quality assurance standards developed by the
authority in consultation with the State Energy Resources
Conservation and Development Commission. The standards shall include
contractor certification and third-party inspection of an appropriate
portion of completed projects to ensure project performance and
consumer protection.
26133. (a) In evaluating eligibility, the authority shall
consider whether the applicant's loan 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 program offers financing for energy and water efficiency
improvements.
(6) Improvements financed by the program follow applicable
standards of energy efficiency retrofit work, including any
guidelines adopted by the State Energy Resources Conservation and
Development Commission.
(b) In evaluating an application, the authority shall consider all
of the following factors:
(1) The use by the loan program of best practices, adopted by the
authority, to qualify eligible properties for participation in
underwriting the loan program.
(2) The cost efficiency of the applicant's loan program.
(3) The projected number of jobs created by the loan program.
(4) The applicant's loan program requirements for quality
assurance and consumer protection, as related to achieving efficiency
and clean energy production, in accordance with the standards
developed pursuant to subdivision (b) of Section 26132.
(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.
(c) The authority may approve a loan program that offers financing
for electric vehicle charging infrastructure if the electric vehicle
charging infrastructure is part of a project to install energy
efficiency improvements and distributed generation renewable energy
resources and is designed so that the project does not increase peak
energy demand.
26134. (a) The authority shall require certification from a loan
applicant that each loan offered pursuant to the applicant's loan
program is consistent with the requirements of the Clean Energy
Upgrade Program administered pursuant to this chapter.
(b) If the conditions of subdivision (a) are satisfied, the
authority shall allocate to the applicant, at the closing of the
loan, the amount made available from the Renewable Resource Trust
Fund in the form of financial assistance as approved by the State
Energy Resources Conservation and Development Commission and the
authority. Prior to providing financial assistance pursuant to this
section, the authority shall enter into an agreement with the
applicant regarding the financial assistance, including the process
for the possible return of moneys disbursed to or on behalf of the
applicant.
SEC. 7. Section 26140 of the Public Resources Code is amended to
read:
26140. (a) Until January 1, 2015, an amount of up to fifty
million dollars ($50,000,000) from the Renewable Resource Trust Fund,
established pursuant to Section 25751, is hereby appropriated to the
authority for the purposes of this division. The moneys appropriated
shall remain in the Renewable Resource Trust Fund until the funds
are needed by the authority pursuant to this division.
(b) Of the moneys appropriated in subdivision (a), up to five
hundred fifty thousand dollars ($550,000) may be expended by the
authority for the initial administrative costs in implementing this
division.
(c) All repayments of moneys disbursed pursuant to this division
shall be deposited into the Renewable Resource Trust Fund.
SEC. 8. Section 26141 of the Public Resources Code is amended to
read:
26141. (a) On March 31, 2011, and annually thereafter, the
authority shall submit to the Legislature a report pursuant to
Section 9795 of the Government Code on all of the following:
(1) The status of the account.
(2) A summary of the PACE bonds that received assistance pursuant
to Chapter 2 (commencing with Section 26120) and a summary of the
loans that received assistance pursuant to Chapter 2.5 (commencing
with Section 26130).
(3) A summary of the benefits provided by this division, including
reduced interest rates on the PACE bonds or on loans receiving
assistance pursuant to this division.
(4) The number of jobs created by the PACE programs or loans that
received assistance pursuant to this division.
(5) Information on energy and water savings resulting from the
PACE programs or loans that received assistance pursuant to this
division.
(6) Other information deemed appropriate by the authority.
(b) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 9. This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.