BILL NUMBER: AB 2551	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 21, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Hueso
   (Coauthor: Senator Vargas)

                        FEBRUARY 24, 2012

   An act to add Section  53395.26   53395.27
 to the Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2551, as amended, Hueso. Infrastructure financing districts:
renewable energy zones.
   Existing law authorizes counties and cities to form infrastructure
financing districts, in accordance with a prescribed procedure, and
requires that a district finance only public capital facilities of
communitywide significance, as specified. Existing law authorizes a
legislative body, by ordinance, to adopt an infrastructure financing
plan and create the district with the full force and effect of law,
if 2/3 of the registered voters within the territory of the proposed
district are in favor of creating the district.
   This bill would authorize a legislative body to establish an
infrastructure financing district in a renewable energy zone area, as
defined, for the purpose of promoting renewable energy projects.
 The bill would exempt the creation of the district from the
voter-approval requirement.   With respect to an
infrastructure financing district created pursuant to these
provisions, the bill would exempt the formation of the infrastructure
financing district, the adoption of an infrastructure financing
plan, or the issuance of bonds from the voter-approval requirement.

   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  53395.26   53395.27 
is added to the Government Code, to read:
    53395.26.   53395.27.   (a) This
section shall apply only to a city that created and approved a
renewable energy infrastructure area.
   (b) For purposes of this section, the following terms shall have
the following meanings:
   (1) "Renewable energy infrastructure area" means an area that
contains a proposed development project or projects that would
generate in total more than  10   50 
megawatts of electricity using an eligible renewable energy resource,
as defined in Article 16 (commencing with Section 399.11) of Part 1
 of Division 1  of the Public Utilities Code, that is
intended to be used for commercial renewable energy production.
   (2) "Commercial renewable energy production" means that the
project has an executed power purchase agreement for the sale of the
electricity from an eligible renewable energy resource to a
California retail seller, as defined by subdivision (j) of Section
399.12 of the Public Utilities Code, or a local publicly owned
electric utility, as defined by Section 224.3 of the Public Utilities
Code. 
   (c) Property tax increment collected from a district created
pursuant to this section shall be used only within the boundaries of
that district.  
   (c) A district created pursuant to this section shall only use tax
increment (1) within the boundaries of that district, and (2) on
renewable energy infrastructure or renewable energy upgrades. 
   (d) In determining whether an area constitutes a renewable energy
infrastructure area, the legislative body may consider areas that are
not contiguous and may aggregate the total megawatts of several
areas.
   (e) The legislative body of a city may use the provisions of this
chapter to form an infrastructure financing district in renewable
energy infrastructure areas for the purpose of promoting renewable
energy projects. 
   (f) The creation of an infrastructure financing district pursuant
to this section shall be exempt from the voter-approval requirement
in Section 53395.23. The legislative body shall comply with all other
applicable requirements of this chapter relating to the financing of
the infrastructure financing district.  
   (f) With respect to an infrastructure financing district created
pursuant to this section, an election shall not be required to form
an infrastructure financing district, adopt an infrastructure
financing plan, or issue bonds pursuant to this chapter. All other
provisions of this chapter shall apply to the formation of an
infrastructure financing district and the adoption of an
infrastructure financing plan. 
   (g)  (1)    Notwithstanding any other law,
 This  this  section is not intended to
interfere with, or prevent the exercise of, the existing authority of
an agency or department to carry out its programs, projects, or
responsibilities to identify, review, approve, deny, or implement any
mitigation requirements, and this section shall not be construed as
a limitation on mitigation requirements for the project, or a
limitation on compliance with requirements under the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) or any other provision of law.

   (2) An infrastructure financing district created pursuant to this
section shall not use property tax increment to pay for, in whole or
in part, subsidize, or make affordable, conditions of project
approval or mitigation requirements imposed on a private developer of
a renewable energy development project.