BILL NUMBER: SB 1128 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 18, 2012
AMENDED IN SENATE MAY 29, 2012
AMENDED IN SENATE MAY 1, 2012
AMENDED IN SENATE APRIL 16, 2012
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Padilla
(Coauthor: Senator Rubio)
FEBRUARY 21, 2012
An act to amend Sections 26001, 26002, 26008, 26009, 26011,
26014, 26015, 26017, 26022, 26023, 26024, 26025, 26030, 26033, 26034,
and 26035 of, to amend, repeal, and add Sections 26003
, 26011, and 26011.8 of , to add Chapter 4
(commencing with Section 26050) to Division 16 of, to repeal Sections
26001.5, 26011.5, 26011.6, 26012, 26013, 26016, 26016.5, 26020,
26021, 26026, and 26027 of, and to repeal Division 16.2 (commencing
with Section 26100) of, the Public Resources Code, and to
amend, repeal, and add Section 6010.8 of the Revenue and Taxation
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1128, as amended, Padilla. Energy: alternative energy
financing.
Existing law establishes the California Alternative Energy and
Advanced Transportation Financing Authority and requires the
authority to establish programs to provide financial assistance to
participating parties for projects related to alternative energy
sources and advanced transportation projects. Existing law authorizes
the authority to issue revenue bonds or other securities of up to $1
billion in total outstanding debt as a financing mechanism for
providing financial assistance to those projects.
This bill would revise and recast those provisions to, among other
things, require the authority to establish programs providing
financial assistance to projects for renewable energy generation
facilities, combined heat and power systems, facilities designed for
the production of renewable fuels, and energy efficiency devices and
technologies. The bill would eliminate the $1 billion limitation on
the amount of outstanding indebtedness the authority may incur to
provide the financial assistance.
Existing law authorizes the California Alternative Energy
and Advanced Transportation Financing Authority
authority , until January 1, 2021, to provide financial
assistance in the form of a sales and use tax exclusion for a project
to promote California-based manufacturing, California-based jobs,
the reduction of greenhouse gases, or the reduction in air and water
pollution or energy consumption. Existing law requires the authority,
upon granting once the sales and use
tax exemption exemptions for projects
that exceeds exceed $100,000,000 for a
given year, to provide the Legislature with a 20-day notice prior to
granting additional sales and use tax exclusion
exemptions. The sales and use tax exemption applies to the
transfer of title of tangible personal property constituting a
project to the authority by a participating party, or a lease or
transfer of title of tangible personal property
constituting a project by the authority to a participating party
.
This bill would additionally authorize the authority, until July
1, 2016, to grant the above financial assistance to projects that
promote the utilization of advanced manufacturing, as defined. The
bill would require the authority, until July 1, 2016, to study the
efficacy and cost benefit of the sales and use tax exemption for
advanced manufacturing projects. The bill would require the
authority, before January 1, 2017, to submit to the Legislature a
report on the study. The bill would require the authority, before
January 1, 2015, to submit to the Legislature an interim report on
the efficacy of granting the sales and use tax exemption for
a projects, and recommendations on changes that would
increase the efficacy in creating jobs and whether the exemption
should be expanded or narrowed. The bill would require the authority,
until July 1, 2016, to work with the Legislative Analyst's Office to
determine the most efficient and cost effective
cost-effective way for the state to create jobs in
advanced manufacturing. The bill would require the authority, until
January 1, 2021, to work with the University of California or the
California State University to perform a peer review of the net
benefits test used to evaluate applicants applying for the sales and
use tax exemption, as specified. The bill would instead prohibit the
authority from granting, on an annual basis, a sales and use tax
exclusion exemption for a project
exceeding $100,000,000. The bill would, instead, apply the sales
and use tax exemption to the lease or transfer of title of tangible
property constituting a project to any participating party.
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 26001 of the Public
Resources Code is amended to read:
26001. The Legislature hereby finds and declares all
both of the following:
(a) It is essential that the state, in cooperation with the
federal government, use all practical and commercially feasible means
to promote the prompt and efficient development of energy sources
which are renewable or which more efficiently utilize and conserve
scarce energy resources.
(b) The promotion of sustainable and renewable energy
sources which , implementation of measures
that increase the efficiency of the use of energy, and advanced
transportation technologies that reduce the degradation of the
environment and which lessen the state's
dependence of fossil fuels, and protect the health, welfare,
and safety of the people of this state is are
in the public interest and serves
serve a public purpose.
(c) It is essential that the state, in cooperation with the
federal government, use all practical and commercially feasible means
to promote the development and commercialization of advanced
transportation technologies to conserve energy, reduce air pollution,
promote economic development and jobs, and protect the health,
welfare, and safety of the people of the state.
SEC. 2. Section 26001.5 of the Public
Resources Code is repealed.
26001.5. (a) It is the intent of the Legislature, in enacting
Senate Bill 1754 of the 2008-09 Regular Session, to only provide
authority for the California Alternative Energy and Advanced
Transportation Financing Authority to use bonds to finance power
purchase agreement arrangements, and not to alter or supersede other
provisions of law addressing criteria associated with energy
generation or advanced transportation technologies, such as
direct-access, the use, size, or statewide caps, or the net-metering
or feed-in tariff provisions.
(b) When the authority uses bonds to finance the power purchase
agreements, the construction, alteration, demolition, installation,
repair, and maintenance work on the projects financed by the
arrangements are subject to Chapter 1 (commencing with Section 1720)
of Part 7 of Division 2 of the Labor Code and the authority shall
incorporate reference to that provision in its agreements with
participating parties.
SEC. 3. Section 26002 of the Public
Resources Code is amended to read:
26002. (a) It is the
purpose of this division to carry out and make effective the
findings of the Legislature pursuant to Sections 25004, 25004.2,
25004.3, 25007, and 26001, advance the state's goals
of reducing the levels of greenhouse gas emissions, increasing the
deployment of sustainable and renewable energy sources, implementing
measures that increase the efficiency of the use of energy, creating
high quality employment opportunities, and lessening the state's
dependence on fossil fuels and to that end to
provide industry within this state with an
alternative method of financing in providing and promoting the
establishment of both of the following:
(1)
(a) Facilities utilizing alternative methods
and sources of energy.
(2)
(b) Facilities needed for the development
and commercialization of advanced transportation technologies.
(b) The Legislature hereby finds and declares that the facilities
specified in subdivision (a) are necessary to meet the energy and
transportation needs of this state and to guarantee the health and
welfare of the citizens of this state.
SECTION 1. SEC. 4. Section 26003 of
the Public Resources Code is amended to read:
26003. (a) As used in this division, unless the context otherwise
requires:
(1) (A) "Advanced manufacturing" means manufacturing that improves
existing, or creates entirely new, materials, products, and
processes through the use of science, engineering, or information
technologies, high-precision tools and methods, a high-performance
workforce, and innovative business or organizational models in any of
the following technology areas:
(i) Micro- and nanoelectronics, including semiconductors.
(ii) Advanced materials.
(iii) Integrated computational materials engineering.
(iv) Nanotechnology.
(v) Additive manufacturing.
(vi) Industrial biotechnology.
(B) "Advanced manufacturing" includes all of the following:
(i) A production system capable of furnishing a mix of products in
small or large volumes, with both the efficiency of mass production
and the flexibility of custom manufacturing, to respond rapidly to
customer demand and desired quality.
(ii) Systems that result from substantive advancement, whether
incremental or breakthrough, over the current state of the art, in
the production of materials and products. These advancements include
improvements in manufacturing processes and systems that are often
referred to as "smart" or "intelligent" manufacturing systems, which
integrate computational predictability and operational efficiency.
(iii) Systems that produce goods that minimize the use of
resources while maintaining or improving cost and performance.
(iv) (I) Systems and technologies that are sustainable.
(II) Sustainable systems and technologies do not include those
required to be undertaken pursuant to state or federal law or
regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents. The State Air Resources Board shall advise
the authority to ensure that the requirements of this subclause are
met.
(2) (A) "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 and greenhouse gas emissions reduction, and
transportation efficiency. Those technologies may include,
but are not limited to, any of the following:
(A) Intelligent vehicle highway systems.
(B) Advanced telecommunications for transportation.
(C) Command, control, and communications for public transit
vehicles and systems.
(D) Electric vehicles and ultralow-emission vehicles.
(E) High-speed rail and magnetic levitation passenger systems.
(F) Fuel cells.
(B) "Advanced transportation technologies" does not include those
required to be undertaken pursuant to state or federal law or
regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents.
(C) The State Air Resources Board shall advise the authority to
ensure that the requirements of this paragraph are met.
(3) (A) "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 devices or technologies used for a
renewable electrical generation facility, as defined in paragraph (1)
of subdivision (a) of Section 25741, a combined heat and power
system, as defined in Section 2840.2 of the Public Utilities Code, or
a facility designed for the production of renewable fuels, the
efficient use of which reduce the use of fossil or nuclear fuels, and
energy efficiency devices or technologies that reduce the need for
new electric generation and reduce emissions of toxic and criteria
pollutants and greenhouse gases .
(B) "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.
(4) "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.
(5) "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 paragraph (7) of subdivision (a) 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.
(6) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
loans, loan loss reserves, interest rate reductions, proceeds of
bonds issued by the authority, bond insurance, loan guarantees or
other credit enhancements or liquidity facilities, contributions of
money, or a combination thereof, as determined by, and approved by
the resolution of, the board.
(A) 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.
(B) Any other type of assistance the authority determines is
appropriate.
(7) (A) "Participating party" means
either of the following: a person, federal or state
agency, department, board, authority, or commission, state or
community college, or university, or a city or county, regional
agency, public district, school district, or other
political entity engaged in the business or operations in the state,
whether organized for profit or not for profit, that applies for
financial assistance from the authority for the purpose of
implementing a project.
(A) 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:
(i) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(ii) Participates in the purchase or sale of energy derived from
an alternative source pursuant to paragraph (7) of subdivision (a) of
Section 26011.
(B) A public agency or nonprofit corporation that does either of
the following:
(i) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(ii) Participates in the purchase or sale of energy derived from
an alternative source pursuant to paragraph (7) of subdivision (a) of
Section 26011.
(B) For the purposes of Section 6010.8 of the Revenue and Taxation
Code, "participating party" means an entity specified in paragraph
(1) that seeks financial assistance pursuant to Section 26011.8.
(8) (A) "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, alternative source
components, or an arrangement for the purchase, including prepayment,
or sale of energy derived from an alternative source pursuant to
paragraph (7) of subdivision (a) of Section 26011.
(B) "Project," for the purposes of Section 26011.8 and
Section 6010.8 of the Revenue and Taxation Code , means any
tangible personal property that is utilized for the design,
manufacture, production, or assembly of advanced manufacturing,
advanced transportation technologies, or alternative source products,
components, or systems.
(9) "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.
(10) (A) "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:
(i) Biomass.
(ii) Solar thermal.
(iii) Photovoltaic.
(iv) Wind.
(v) Geothermal.
(B) 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.
(C) Notwithstanding subparagraph (A), for the purposes of this
section, "renewable energy" also means ultralow-emission equipment
for energy generation based on thermal energy systems such as natural
gas turbines; landfill gas turbines, engines, and microturbines;
digester gas turbines, engines, and microturbines; and fuel cells.
(11)
(9) "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.
(b) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 2. SEC. 5. Section 26003 is
added to the Public Resources Code, to read:
26003. (a) As used in this division, unless the context otherwise
requires:
(1) (A) "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 and greenhouse gas emissions reduction, and
transportation efficiency. Those technologies may include,
but are not limited to, any of the following:
(A) Intelligent vehicle highway systems.
(B) Advanced telecommunications for transportation.
(C) Command, control, and communications for public transit
vehicles and systems.
(D) Electric vehicles and ultralow-emission vehicles.
(E) High-speed rail and magnetic levitation passenger systems.
(F) Fuel cells.
(B) "Advanced transportation technologies" does not include those
required to be undertaken pursuant to state or federal law or
regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents.
(C) The State Air Resources Board shall advise the authority to
ensure that the requirements of this paragraph are met.
(2) (A) "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 devices or technologies used for a
renewable electrical generation facility, as defined in paragraph (1)
of subdivision (a) of Section 25741, a combined heat and power
system, as defined in Section 2840.2 of the Public Utilities Code, or
a facility designed for the production of renewable fuels, the
efficient use of which reduce the use of fossil or nuclear fuels, and
energy efficiency devices or technologies that reduce the need for
new electric generation and reduce emissions of toxic and criteria
pollutants and greenhouse gases .
(B) "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.
(3) "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.
(4) "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 paragraph (7) of subdivision (a) 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.
(5) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
loans, loan loss reserves, interest rate reductions, proceeds of
bonds issued by the authority, bond insurance, loan guarantees or
other credit enhancements or liquidity facilities, contributions of
money, or a combination thereof, as determined by, and approved by
the resolution of, the board.
(A) 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.
(B) Any other type of assistance the authority determines is
appropriate.
(6) (A) "Participating party" means
either of the following: a person, federal or state
agency, department, board, authority, or commission, state or
community college, or university, or a city or county, regional
agency, public district, school district, or other
political entity engaged in the business or operations in the state,
whether organized for profit or not for profit, that applies for
financial assistance from the authority for the purpose of
implementing a project.
(A) 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:
(i) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(ii) Participates in the purchase or sale of energy derived from
an alternative source pursuant to paragraph (7) of subdivision (a) of
Section 26011.
(B) A public agency or nonprofit corporation that does either of
the following:
(i) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(ii) Participates in the purchase or sale of energy derived from
an alternative source pursuant to paragraph (7) of subdivision (a) of
Section 26011.
(B) For the purposes of Section 6010.8 of the Revenue and Taxation
Code, "participating party" means an entity specified in paragraph
(1) that seeks financial assistance pursuant to Section 26011.8.
(7) (A) "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, alternative source
components, or an arrangement for the purchase, including prepayment,
or sale of energy derived from an alternative source pursuant to
paragraph (7) of subdivision (a) of Section 26011.
(B) "Project," for the purposes of Section 26011.8 of this
and Section 6010.8 of the Revenue and Taxation Code , 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.
(8) "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.
(9) (A) "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:
(i) Biomass.
(ii) Solar thermal.
(iii) Photovoltaic.
(iv) Wind.
(v) Geothermal.
(B) 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.
(C) Notwithstanding subparagraph (A), for the purposes of this
section, "renewable energy" also means ultralow-emission equipment
for energy generation based on thermal energy systems such as natural
gas turbines; landfill gas turbines, engines, and microturbines;
digester gas turbines, engines, and microturbines; and fuel cells.
(10)
(8) "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.
(b) This section shall become operative on July 1, 2016.
SEC. 6. Section 26008 of the Public
Resources Code is amended to read:
26008. The authority may employ an executive director and any
other persons as are necessary to enable it properly to perform the
duties imposed upon it by this division. The executive director shall
serve at the pleasure of the authority and
shall receive such compensation as shall be fixed
by the authority. The authority may, by resolution, delegate to
one or more of its members, its executive
director, or any other official or employee of the
authority , or the Treasurer's designee any powers and
duties that it may deem proper, including, but not limited to, the
power to enter into contracts on behalf of the authority.
SEC. 7. Section 26009 of the Public
Resources Code is amended to read:
26009. (a) The authority
shall, in accordance with Chapter may adopt,
amend, or repeal all rules and regulations necessary to carry out
this division as emergency regulations in accordance with the
rulemaking provisions of the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code , adopt
all necessary rules and regulations to carry out this division
Code). The adoption, amendment, or repeal of the
regulations is conclusively presumed to be necessary for the
immediate preservation of the public peace, health, safety, or
general welfare within the meaning of Section 11346.1 of the
Government Code .
(b) The authority may call upon any board or department of the
state government for aid and assistance in the preparation of plans
and specifications and in the development of technology necessary to
effectively promote the development and utilization of alternative
energy sources and the development and commercialization of advanced
transportation technologies.
SEC. 3. SEC. 8. Section 26011 of the
Public Resources Code is amended to read:
26011. (a) The authority is
authorized and empowered:
(1)
(a) To adopt an official seal.
(2)
(b) To sue and be sued in its own name.
(3)
(c) To issue bonds, notes, bond anticipation
notes, and other obligations of the authority, including, at the
option of the authority, obligations bearing interest that is taxable
for purposes of federal income taxation, for any of its purposes and
to fund or refund the same, all as provided in this division.
(4)
(d) To determine the location and character
of a project to be financed under the provisions of this division, to
lend provide financial assistance to a
participating party, to enter into loan agreements with a
participating party for the financing of a project including creating
a lien or security interest in the property, to construct,
reconstruct, renovate, replace, lease, as lessor or lessee, and
regulate the same, and to enter into contracts for the sale of a
project, including installment sales or sales under conditional sales
contracts.
(5)
(e) To fix fees and charges for projects,
and interest rates with respect to loans for projects or for
loan of moneys to finance projects , and to revise from time to
time the fees and charges and interest rates, and to collect rates,
rents, fees, loan repayments, and charges for the use of,
and for a facility or service furnished, or to be furnished, by a
project or part of the project and to contract with a person,
partnership, association, corporation, or public agency with respect
to the project, and to fix the terms and conditions upon which a
project may be sold or disposed of, whether upon installment sales
contracts or otherwise.
(6)
(f) To employ and fix the compensation of
bond counsel, financial consultants, and advisers as may be necessary
in its judgment in connection with the issuance and sale of any
bonds, notes, bond anticipation notes, or other obligations of the
authority; to contract for engineering, architectural,
accounting, or other services of appropriate state agencies as may be
necessary in the judgment of the authority for the successful
development of a project; and to pay the reasonable costs of
consulting engineers, architects, accountants, and construction
experts employed by a participating party if, in the judgment of the
authority, the services are necessary to the successful development
of a project, and the services are not obtainable from a state agency
to advance the purposes of this division
.
(7) To purchase alternative source energy or projects from a
person or entity for sale to a participating party, or to make a loan
to a participating party to purchase alternative source energy or
projects, or to purchase from a person or entity that has contracted
to sell alternative source energy to a participating party the right
to receive purchase payments and related rights under that contract
or any related contracts. Notwithstanding any other applicable law,
the authority and a public agency, for purposes of a program or
financing, shall have the power to enter into contractual
arrangements and related agreements or instruments, including,
without limitation, a prepayment purchase contract, lease, loan,
construction, security, operation and maintenance, or other agreement
or instrument, with the authority or with a participating party,
upon the terms and subject to the conditions that may be necessary or
convenient to accomplish the purposes of this subdivision. The
authority shall only enter into a prepayment contract with a
participating party for energy derived from an alternative source to
the extent the prepayment is for energy intended to primarily offset
part or all of the authority's or a participating party's own
electrical requirements.
(8)
(g) To purchase, with proceeds of its bonds
or its revenue, bonds issued by a public agency described in
clause (ii) of subparagraph (B) of paragraph (7) of subdivision (a)
of Section 26003 at a public or negotiated sale. Bonds
purchased pursuant to this subdivision may be held by the authority
or sold to public or private purchasers at public or negotiated
sales, in whole or in part, separately or together with other bonds
issued by the authority.
(9)
(h) To do all things generally necessary or
convenient to carry out the purposes of this division.
(b) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 4. Section 26011 is added to the Public
Resources Code, to read:
26011. (a) The authority is authorized and empowered:
(1) To adopt an official seal.
(2) To sue and be sued in its own name.
(3) To issue bonds, notes, bond anticipation notes, and other
obligations of the authority, including, at the option of the
authority, obligations bearing interest that is taxable for purposes
of federal income taxation, for any of its purposes and to fund or
refund the same, all as provided in this division.
(4) To determine the location and character of a project to be
financed under the provisions of this division, to lend financial
assistance to a participating party, to enter into loan agreements
with a participating party for the financing of a project including
creating a lien or security interest in the property, to construct,
reconstruct, renovate, replace, lease, as lessor or lessee, and
regulate the same, and to enter into contracts for the sale of a
project, including installment sales or sales under conditional sales
contracts.
(5) To fix fees and charges for projects, and interest rates with
respect to loans for projects, and to revise from time to time the
fees and charges and interest rates, and to collect rates, rents,
fees, and charges for the use of, and for a facility or service
furnished, or to be furnished, by a project or part of the project
and to contract with a person, partnership, association, corporation,
or public agency with respect to the project, and to fix the terms
and conditions upon which a project may be sold or disposed of,
whether upon installment sales contracts or otherwise.
(6) To employ and fix the compensation of bond counsel, financial
consultants, and advisers as may be necessary in its judgment in
connection with the issuance and sale of any bonds, notes, bond
anticipation notes, or other obligations of the authority; to
contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may be necessary in the
judgment of the authority for the successful development of a
project; and to pay the reasonable costs of consulting engineers,
architects, accountants, and construction experts employed by a
participating party if, in the judgment of the authority, the
services are necessary to the successful development of a project,
and the services are not obtainable from a state agency.
(7) To purchase alternative source energy or projects from a
person or entity for sale to a participating party, or to make a loan
to a participating party to purchase alternative source energy or
projects, or to purchase from a person or entity that has contracted
to sell alternative source energy to a participating party the right
to receive purchase payments and related rights under that contract
or any related contracts. Notwithstanding any other applicable law,
the authority and a public agency, for purposes of a program or
financing, shall have the power to enter into contractual
arrangements and related agreements or instruments, including,
without limitation, a prepayment purchase contract, lease, loan,
construction, security, operation and maintenance, or other agreement
or instrument, with the authority or with a participating party,
upon the terms and subject to the conditions that may be necessary or
convenient to accomplish the purposes of this subdivision. The
authority shall only enter into a prepayment contract with a
participating party for energy derived from an alternative source to
the extent the prepayment is for energy intended to primarily offset
part or all of the authority's or a participating party's own
electrical requirements.
(8) To purchase, with proceeds of its bonds or its revenue, bonds
issued by a public agency described in clause (ii) of subparagraph
(B) of paragraph (6) of subdivision (a) of Section 26003 at a public
or negotiated sale. Bonds purchased pursuant to this subdivision may
be held by the authority or sold to public or private purchasers at
public or negotiated sales, in whole or in part, separately or
together with other bonds issued by the authority.
(9) To do all things generally necessary or convenient to carry
out the purposes of this division.
(b) This section shall become operative on July 1, 2016.
SEC. 9. Section 26011.5 of the Public
Resources Code is repealed.
26011.5. The authority, in consultation with the State Energy
Resources Conservation and Development Commission, shall establish
criteria for the selection of projects to receive financing
assistance from the authority. In the selection of projects, the
authority shall, in accordance with the legislative intent, provide
financial assistance under this division in a manner consistent with
sound financial practice. In developing project selection criteria,
the authority shall consider, but not be limited to, all of the
following:
(a) The technological feasibility of the projects.
(b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
(c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
(d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
(e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.
SEC. 10. Section 26011.6 of the Public
Resources Code is repealed.
26011.6. (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
(b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of that Chapter 3.5, including Section 11349.6 of the
Government Code, the adoption of the regulations shall be considered
by the Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
(c) The authority shall consult with the State Energy Resources
Conservation and Development Commission regarding the financing of
projects to avoid duplication of other renewable energy projects.
(d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
(e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
SEC. 5. SEC. 11. Section 26011.8 of
the Public Resources Code is amended to read:
26011.8. (a) The purpose of this section is to promote the
creation of California-based manufacturing, California-based jobs,
advanced manufacturing, the reduction of greenhouse gases, or
reductions in air and water pollution or energy consumption. In
furtherance of this purpose, the authority may approve a project for
financial assistance in the form of the sales and use tax exclusion
established in Section 6010.8 of the Revenue and Taxation Code.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Alternative source," in addition to as provided pursuant to
subdivision (c) of Section 26003, includes advanced electric
distributive generation technology as defined in Section 379.8 of the
Public Utilities Code or energy storage technologies and their
component materials.
(2) "Project" means a project as defined in subparagraph (B) of
paragraph (8) of subdivision (a) of Section 26003.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by any federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j) (k)
, and without regard to the actual date of any transaction
between a participating party and the authority, any project approved
by the authority by resolution for the sales and use tax exclusion
pursuant to Section 6010.8 of the Revenue and Taxation Code prior to
March 24, 2010, shall not be subject to this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The types of advanced manufacturing, as defined in paragraph
(1) of subdivision (a) of Section 26003, utilized.
(5) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) The exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section shall not exceed one hundred million dollars
($100,000,000) for each calendar year.
(i) The authority shall make every effort to expedite the
operation of this section, and shall adopt regulations for purposes
of implementing the section as emergency regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. For purposes of that
Chapter 3.5, including Section 11349.6 of the Government Code, the
adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health and safety, and general welfare.
(j) (1) The authority shall study the efficacy and cost benefit of
the sales and use tax exemption as it relates to advanced
manufacturing projects. The study shall include the number of jobs
created, the costs of each job, and the annual salary of each job.
The study shall also consider a dynamic analysis of the economic
output to the state that would occur without the sales and use tax
exemption. The authority shall work with the Legislative Analyst's
Office to determine the most efficient and cost-effective way for the
state to create jobs in advanced manufacturing. Before January 1,
2017, the authority shall submit to the Legislature, consistent with
Section 9795 of the Government Code, the result of the study.
(2) Before January 1, 2014, and within six months of any
significant change to the net benefits test, the authority shall work
with the University of California or the California State University
to perform a peer review of the net benefits test currently used to
evaluate applicants applying pursuant to this section.
(3) Before January 1, 2015, the authority shall, consistent with
Section 9795 of the Government Code, submit to the Legislature an
interim report on the efficacy of the program conducted pursuant to
this section. The study shall include recommendations on program
changes that would increase the program's efficacy in creating
permanent and temporary jobs, and whether eligibility for the program
should be extended or narrowed to other manufacturing types. The
authority may work with the Legislative Analyst's Office in preparing
the report and its recommendations.
(k) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2016, and, as of January 1, 2017, is
repealed, unless a later enacted statute, that becomes operative on
or before January 1, 2017, deletes or extends the dates on which it
becomes inoperative and is repealed. The sale or purchase of tangible
personal property of a project approved prior to June 30, 2016,
shall continue to be excluded from sales and use taxes pursuant to
Section 6010.8 of the Revenue and Taxation Code for the period of
time set forth in the authority's resolution approving the project
pursuant to this section.
(2) Notwithstanding paragraph (1), the authority's obligation to
submit to the Legislature a report pursuant to paragraph (3) of
subdivision (j) shall remain operative until the submission of the
report.
SEC. 6. SEC. 12. Section 26011.8 is
added to the Public Resources Code, to read:
26011.8. (a) The purpose of this section is to promote the
creation of California-based manufacturing, California-based jobs,
the reduction of greenhouse gases, or reductions in air and water
pollution or energy consumption. In furtherance of this purpose, the
authority may approve a project for financial assistance in the form
of the sales and use tax exclusion established in Section 6010.8 of
the Revenue and Taxation Code.
(b) (1) For purposes of this section, "project" means a project
as defined in subparagraph (B) of paragraph (7) of subdivision (a) of
Section 26003.
(2) For purposes of this section, "alternative sources" also
includes advanced electric distributive generation technology as
defined in Section 379.8 of the Public Utilities Code or energy
storage technologies and their component materials.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by any federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j) (k)
, and without regard to the actual date of any transaction
between a participating party and the authority, any project as
defined in paragraph (7) of subdivision (a) of Section 26003 approved
by the authority by resolution for the sales and use tax exclusion
pursuant to Section 6010.8 of the Revenue and Taxation Code prior to
March 24, 2010, shall not be subject to this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) The exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section shall not exceed one hundred million dollars
($100,000,000) for each calendar year.
(i) The authority shall make every effort to expedite the
operation of this section, and shall adopt regulations for purposes
of implementing the section as emergency regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. For purposes of that
Chapter 3.5, including Section 11349.6 of the Government Code, the
adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation
of the public peace,
health and safety, and general welfare.
(j) If any significant changes are made to the net benefits test,
the authority shall work with the University of California or the
California State University to perform a peer review of the net
benefits test currently used to evaluate applicants applying pursuant
to this section.
(k) This section shall become operative on July 1, 2016, and shall
remain in effect only until January 1, 2021, and as of that date is
repealed. The sale or purchase of tangible personal property of a
project approved prior to January 1, 2021, shall continue to be
excluded from sales and use taxes pursuant to Section 6010.8 of the
Revenue and Taxation Code for the period of time set forth in the
authority's resolution approving the project pursuant to this
section.
SEC. 13. Section 26012 of the Public
Resources Code is repealed.
26012. All expenses incurred in carrying out the provisions of
this division shall be payable solely from funds provided under the
authority of this division and no liability or obligation shall be
imposed upon the State of California and, except as provided in
Section 26027, none shall be incurred by the authority beyond the
extent to which moneys shall have been provided under the provisions
of this division. Under no circumstances shall the authority create
any debt, liability, or obligation on the part of the State of
California payable from any source whatsoever other than the moneys
provided under the provisions of this division.
SEC. 14. Section 26013 of the Public
Resources Code is repealed.
26013. (a) All projects shall be constructed or completed subject
to the rules and regulations of the authority.
(b) In addition to the requirements of subdivision (a), all
projects involving construction or completion of hydroelectric
facilities shall comply with all state laws pertaining to the
control, appropriation, use, and distribution of water, including,
but not limited to, the obtaining of applicable licenses and permits,
as a condition of receiving any financing under this division. For
these purposes, no financial assistance shall be provided by the
authority for construction or completion of hydroelectric facilities
unless the participating party provides proof of either of the
following:
(1) Certification from the State Water Resources Control Board
that a water right permit has been issued for the operation of the
hydroelectric facility. No certification shall be issued unless, in
applying for the certification, the applicant agrees in writing to
comply with all terms and conditions of the permit.
(2) Certification from the State Water Resources Control Board
that, in the opinion of the board, the private energy producer
possesses riparian rights or other water rights which authorize the
operation of the hydroelectric facility.
(c) The authority may acquire, by deed, purchase, lease, contract,
gift, devise, or otherwise, any real or personal property,
structures, rights, rights-of-way, franchises, easements, and other
interests in lands located within this state necessary or convenient
for the construction or operation of a project, upon terms and
conditions it deems advisable, and to lease, sell, or dispose of any
property or interest in any manner necessary or desirable to carry
out this division. The authority may not exercise the power of
eminent domain under this division or any other provision of law.
SEC. 15. Section 26014 of the Public
Resources Code is amended to read:
26014. When the principal of and interest on bonds of the
authority issued to finance or refund the cost of a
particular project for a participating party , including any
refunding bonds issued to refund and refinance such bonds,
shall have been fully paid and retired or when adequate provision
shall have been made for the payment and retirement of the same, and
all other conditions of the resolution, indenture, or agreement
authorizing and securing the same shall have been satisfied and the
lien of such resolution, indenture, or agreement shall have been
released in accordance with the provisions thereof, the authority is
authorized, upon such terms and conditions as may be prescribed by
the authority, to execute such deeds and conveyances as are necessary
or required to convey title to such project to such participating
party.
SEC. 16. Section 26015 of the Public
Resources Code is amended to read:
26015. (a) The authority, or the executive secretary
director of the authority, if authorized to do
so by resolution of the authority, shall take official action towards
the issuance of bonds with respect to any participating party at the
next meeting of the authority occurring more than 30 days following
receipt of such application or if by the executive secretary
director within 45 days of such receipt. The
executive secretary director may be
authorized to take such action in a resolution of general authority.
Official action towards the issuance of bonds may reserve the right
of the authority to further review an application for financing and
to consider the terms thereof prior to the issuance of bonds
therefor.
(b) The authority shall take final action to approve or disapprove
of the issuance of bonds or notes to lend financial assistance to
participating parties within 60 days of the receipt by the authority
of a request from such participating party for such action. Any such
request by a participating party for such final action shall be
accompanied by evidence of fulfillment of any and all conditions to
the issuance of such bonds or notes imposed at the time the first
action towards the issuance thereof was taken by the authority and by
copies of forms of all principal legal documents to be approved by
the authority.
(c) The authority may give final approval for the issuance of such
bonds or notes upon such terms as it reasonably deems necessary or
desirable.
(d) Any action under this section shall be at the sole discretion
of the authority.
SEC. 17. Section 26016 of the Public
Resources Code is repealed.
26016. The authority shall provide maximum opportunity for use of
its financing by individuals and small businesses or corporations by
providing information, assistance, and coordination to facilitate
financing for small projects. Small projects under one million
dollars ($1,000,000) cost or one megawatt size or both such cost and
size may be grouped together and qualify as one bond sale. In the
event that a small business entity applying for funding under this
section is not approved by the authority, the authority shall assist
the small business entity to locate a favorable funding source
through a corporation qualified under the Business and Industrial
Development Corporations Law (commencing with Section 31000 of the
Financial Code), or through any federal, state, or private funding
source.
SEC. 18. Section 26016.5 of the Public
Resources Code is repealed.
26016.5. (a) The Legislature finds and declares that small
businesses have had difficulty establishing adequate security for
bonds issued by the authority in their behalf, and that establishing
common reserve funds will help to provide reasonable security for
such bonds and will help to make the authority's services available
to various small businesses which are presently unable to use them.
(b) For the purpose of establishing and maintaining such common
reserve funds as it deems necessary or desirable to secure its bonds
or any issuance thereof, the authority, pursuant to its contracts
with participating parties, may levy fees or other charges on, or
require deposits from, participating parties receiving financing for
projects under this division. Prior to levying any such fees or
charges or requiring such deposits, the authority shall adopt
regulations for the operation of the common reserve funds and
governing the amounts and any payment schedule for such fees,
charges, or deposits.
(c) Subject to any prior contractual obligations to any of its
bondholders, the authority may establish one or more common reserve
funds for any or all of its bonds. The liability of any such common
reserve fund, with respect to any single issue of bonds of the
authority, may not exceed 25 percent of the sum of the bonds of such
issue.
(d) Each common reserve fund established pursuant to this section
shall be deposited in a special account which shall be established by
the Controller. Notwithstanding any other provision of law, all
interest or other increment earned by investment or deposit of moneys
in such an account pursuant to any provision of Part 2 (commencing
with Section 16300) of Division 4 of Title 2 of the Government Code
or pursuant to any other provision of law shall be credited to, and
deposited in, the account.
SEC. 19. Section 26017 of the Public
Resources Code is amended to read:
26017. The authority, no later than March 1
31 of each year, shall submit to the Legislature a report
of its activities for the preceding calendar year ended December 31.
Such report shall include (1) a listing of the applications received,
(2) a listing of the applications accepted for financing, (3) a
specification of bonds sold, interest rates thereon, and whether bond
sales were pursuant to public bid or were negotiated, (4) a
specification of the amount of bonds authorized but currently unsold,
(5) a projection of the authority's needs and requirements for the
coming year, and (6) a report of revenues and expenditures for the
preceding fiscal year.
SEC. 20. Section 26020 of the Public
Resources Code is repealed.
26020. (a) The authority 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 revenues of the authority and the proceeds of its
negotiable bonds, notes, debentures, or other securities, and shall
not exceed the sum of one billion dollars ($1,000,000,000) of total
debt outstanding.
(b) As used in this section, "total debt outstanding" does not
include either of the following:
(1) A bond for which provisions have been made for prepayment
through irrevocable escrow or other means, so that the bond is not
considered outstanding under its authorizing document.
(2) Indebtedness that is incurred to refund existing debts, except
to the extent that the indebtedness exceeds the amount of those
debts.
SEC. 21. Section 26021 of the Public
Resources Code is repealed.
26021. The Legislature may, by statute, authorize the authority
to issue bonds, as defined in Section 26022, in excess of the amount
provided in Section 26020.
SEC. 22. Section 26022 of the Public
Resources Code is amended to read:
26022. (a) The authority is authorized from time to time to issue
its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any of its purposes.
The bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties, or the purchase and sale of
alternative source energy or projects pursuant to subdivision (g) of
Section 26011. In anticipation of the sale of bonds as
authorized by Section 26020, or as may be authorized pursuant to
Section 26021, the The authority 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 authority 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 authority may contain. However, a
note or renewal of the note shall mature at a time not exceeding
two three years from the date of issue
of the original note.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligations
shall be general obligations of the authority payable from any
revenues or moneys of the authority 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 26020 and
26021, the The bonds may be issued as serial
bonds or as term bonds, or the authority, in its discretion, may
issue bonds of both types. The bonds shall be authorized by
resolution of the authority 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 fixed rate or rates, or
at the variable rates, including multiple methods of setting rates
from time to time while the bonds are outstanding, 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 or tender , 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 authority's resolution authorizing the sale of the bonds.
However, the authority, at its discretion, may adopt a resolution
extending the 60-day period as agent for sale .
The sales may be a public or private sale, and for the price or
prices and on the terms and conditions, as the authority 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 or any credit provider to be
authorized, as to all of the following:
(1) Pledging the full faith and credit of the authority or
pledging all or part of the revenues of a project or a
revenue-producing contract or contracts made by the authority with an
individual, partnership, corporation, or association or other body,
public or private, or other moneys of the authority, 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 authority 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 authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority 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 participating party 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
participating parties to receive the financing.
(12) Provisions for the security of any provider of credit
enhancement supporting payment on the bonds, but only in a manner
subordinate to the right of bondholders.
(e) Neither the members of the authority 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 authority shall have power out of any funds available for
these purposes to purchase its bonds or notes without the
cancellation thereof . The authority may hold, pledge, cancel,
or resell those bonds, subject to and in accordance with agreements
with bondholders.
SEC. 23. Section 26023 of the Public
Resources Code is amended to read:
26023. In the discretion of the authority, any bonds issued under
the provisions of this division may be secured by a trust agreement
by and between the authority and a corporate trustee or trustees,
which may be the State Treasurer or any trust company or bank having
the powers of a trust company within or without the state. Such trust
agreement or the resolution providing for the issuance of such bonds
may pledge or assign the revenues to be received or proceeds of any
contract or contracts pledged and may convey or mortgage the project
or projects, or any portion thereof, to be financed out of the
proceeds of such bonds. Such trust agreement or resolution providing
for the issuance of such bonds may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders
or any credit provider as may be reasonable and proper and
not in violation of law, including particularly such provisions as
have hereinabove been specifically authorized to be included in any
resolution or resolutions of the authority authorizing bonds thereof.
Any bank or trust company doing business under the laws of this
state which may act as depositary of the proceeds of bonds or of
revenues or other moneys may furnish such indemnifying bonds or
pledge such securities as may be required by the authority. Any such
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 or any credit provider
. In addition to the foregoing, any such trust agreement or
resolution may contain such other provisions as the authority may
deem reasonable and proper for the security of the bondholders
or any credit provider . Notwithstanding any other provision of
law, the State Treasurer shall not be deemed to have a conflict of
interest by reason of acting as trustee pursuant to this division.
All expenses incurred in carrying out the provisions of such trust
agreement or resolution may be treated as a part of the cost of the
operation of a project.
SEC. 24. Section 26024 of the Public
Resources Code is amended to read:
26024. Bonds issued under the provisions of this division shall
not be deemed to constitute a debt or liability of the state or of
any political subdivision thereof, other than the authority, or a
pledge of the faith and credit of the state or of any such political
subdivision, other than the authority, but shall be payable solely
from the funds herein provided therefor. All such bonds shall contain
on the face thereof a statement to the following effect:
"Neither the faith and credit nor the taxing power of the State of
California or any local agency is pledged to the payment
of the principal of or interest on this bond."
The issuance of bonds under the provisions of this division shall
not directly or indirectly or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. Nothing contained in this section shall prevent nor be
construed to prevent the authority from pledging its full faith and
credit to the payment of bonds or issue of bonds authorized pursuant
to this division.
SEC. 25. Section 26025 of the Public
Resources Code is amended to read:
26025. (a) The authority is hereby authorized to provide for the
issuance of bonds of the authority for the purpose of refunding
, directly or indirectly, any bonds, notes, or other
securities evidence of indebtedness of the
authority or any public agency 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 such bonds, and, if deemed
advisable by the authority, 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
thereof.
(b) The proceeds of any such bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending such application,
be placed in escrow to be applied to such purchase or retirement at
maturity or redemption on such date as may be determined by the
authority.
(c) Pending such use, any such escrowed proceeds may be invested
and reinvested by the State Treasurer or any trustee 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
instruments as may be specified in the resolution or
indenture governing the bonds to be refunded , maturing at such
time or times as shall be appropriate to assure 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 such 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 such proceeds and interest, income, and profits,
if any, earned or realized on the investments thereof may be returned
to the authority for use by it in any lawful manner.
(d) The portion of the proceeds of any such 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 State
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 such proceeds will be
needed for the purpose of paying all or any part of such cost. The
interest, income and profits, if any, earned or realized on such
investment may be applied to the payment of all or any part of such
cost or may be used by the authority in any lawful manner.
(e)
(d) All such bonds shall be subject to the
provisions of this division in the same manner and to the same extent
as other bonds issued pursuant to this division. If the
authority refunds bonds or evidence of indebtedness not originally
issued by the authority, the authority shall make findings that the
project being refinanced qualifies as a project under this division.
SEC. 26. Section 26026 of the Public
Resources Code is repealed.
26026. Bonds issued by the authority 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 which may be
invested in county, municipal, or school district bonds, and such
bonds are securities which 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 such bonds qualify or are eligible for such
purposes and uses.
SEC. 27. Section 26027 of the Public
Resources Code is repealed.
26027. No liability shall be incurred by the authority beyond the
extent to which moneys have been provided under this division;
except that for the purposes of meeting the necessary expenses of
initial organization and operation until such date as the authority
derives revenues or proceeds from bonds or notes as provided under
this division, the authority may borrow money as needed for such
expenses from the State Energy Resources Conservation and Development
Special Account in the General Fund in the State Treasury. Such
borrowed moneys shall be repaid with interest within a reasonable
time after the authority receives revenues or proceeds from bonds or
notes as provided under this division.
SEC. 28. Section 26030 of the Public
Resources Code is amended to read:
26030. The authority may contract with any participating party
for the construction or acquisition of a project by such
participating party. All such contracts for the construction or
acquisition of a project by a participating party shall provide
that the participating party shall be responsible for the
architectural and engineering design and for the construction and
completion thereof, subject to such standards for architectural and
engineering design as may be established, and subject to such
supervision as the authority deems necessary. The authority may agree
to pay the cost of such project constructed or acquired
by any participating party and to advance such costs from time to
time in installments or otherwise as required by the contract for the
construction or acquisition thereof. Title to all such
projects shall may be vested in the
authority subject to the terms of any lease thereof to the
participating party or the rights of a participating party under any
contract for the purchase or acquisition of such project
including the payment of the purchase price under installment sales
contracts.
SEC. 29. Section 26033 of the Public
Resources Code is amended to read:
26033. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues, or as fees received
by the authority, shall be deemed to be trust funds to be held
and applied solely as provided in this division. Any bank or trust
company with which such moneys shall be deposited shall act as
trustee of such moneys and shall hold and apply the same for the
purposes hereof, subject to such regulations as the resolution
authorizing the bonds of any issue or the trust agreements securing
such bonds may provide.
SEC. 30. Section 26034 of the Public
Resources Code is amended to read:
26034. Any holder of bonds, notes, or other obligations issued
under the provisions of this division or any of the coupons
appertaining thereto , and the trustee or trustees under
any trust agreement, except to the extent the rights herein given may
be restricted by any resolution authorizing the issuance of, or any
such trust agreement securing, such bonds, notes, or other
obligations, may, either at law or in equity, by suit, action,
mandamus, or other proceedings, protect and enforce any and all
rights under the laws of the state or granted hereunder or under such
resolution or trust agreements, and may enforce and compel the
performance of all duties required by this division or by such
resolution or trust agreement to be performed by the authority or by
any officer, employee, or agent thereof, including the fixing,
charging, and collecting of the rates, rents, fees, and charges
herein authorized and required by the provisions of such resolution
or trust agreement to be fixed, established, and collected.
SEC. 31. Section 26035 of the Public
Resources Code is amended to read:
26035. The exercise of the powers granted by this division shall
be in all respects for the benefit of the people of this state, for
their health and welfare, and protection of the state's environment.
Any bonds, notes, or other obligations issued under the provisions of
this division, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by
municipalities and other political subdivisions of the state.
However, the preceding sentence shall not apply with respect
to any bonds, notes, or other obligations, or the income therefrom,
for any period during which such bonds, notes, or other obligations
are held by (a) any participating party, (b) persons, organizations,
trades, or businesses (whether or not incorporated, organized in this
state, or affiliated with such participating party) owned or
controlled, directly or indirectly, by such participating party, or
(c) persons, organizations, trades or businesses (whether or not
incorporated, organized in this state, or affiliated with such
participating party) which own or control, directly or indirectly,
such participating party.
SEC. 32. Chapter 4 (commencing with Section 26050)
is added to Division 16 of the Public Resources Code
, to read:
CHAPTER 4. PROPERTY ASSESSED CLEAN ENERGY (PACE) AND CLEAN
ENERGY FINANCING PROGRAM
Article 1. General Provisions and Definitions
26050. (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.
26050.5. 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.
26051. Unless the context otherwise requires, the definitions in
this article govern the construction of this chapter.
26052. "Applicant" means, for the purposes of Article 2
(commencing with Section 26060), 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 Article 3 (commencing with
Section 26070), 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.
26053. "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 26070.
26054. "Property Assessed Clean Energy bond" or "PACE bond" means
a bond that is secured by any of the following:
(a) A voluntary contractual assessment on property authorized
pursuant to paragraph (2) of subdivision (a) of Section 5898.20 of
the Streets and Highways Code.
(b) 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.
(c) A special tax on property authorized pursuant to subdivision
(b) of Section 53328.1 of the Government Code.
26055. "PACE program" means a program established by an applicant
that is financed by the PACE bond.
26056. This chapter does not create any liability or obligation
upon the State of California and none shall be incurred by the
authority beyond the extent to which moneys shall have been provided
under this division. The authority shall not create any debt,
liability, or obligation on the part of the State of California
payable from any source whatsoever other than the moneys provided
under this chapter.
Article 2. PACE Reserve Program
26060. The authority shall develop and administer a PACE Reserve
program to reduce overall costs to the property owners of PACE bonds
issued by an applicant by providing a reserve of no more than 10
percent of the initial principal amount of the PACE bond.
26061. To qualify for assistance pursuant to this chapter, 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.
26062. An applicant shall submit to the authority an application
providing a detailed description of the PACE program, a detailed
description of the transactional activities associated with the PACE
bond issuance, including all transactional costs, and other
information deemed necessary by the authority.
26063. (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.
26064. The authority shall review the applicant's PACE bond
issuance, including, but not limited to, indenture, trust agreement,
and fiscal agent agreement ("the bond documents") and, when the
authority is satisfied that the bond documents are consistent with
the requirements of the PACE Reserve program established pursuant to
this chapter, the authority shall advance to the applicant or the
applicant's bond trustee, at the closing of the applicant's PACE
bonds, the amount made available from the Renewable Resource Trust
Fund and approved by the authority for use in the PACE bond's reserve
fund under the bond documents. Prior to the disbursement of moneys
pursuant to this section into a reserve fund, the authority shall
enter into an agreement with the applicant regarding the creation and
operation of the reserve fund, including the manner in which the
authority will be repaid for any moneys disbursed to the reserve
fund.
Article 3. Clean Energy Upgrade Program
26070. 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 that are
permanently fixed to 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.
26071. (a) The authority shall adopt regulations governing the
implementation of this chapter, including quality assurance pursuant
to subdivision (b) of Section 26072, 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.
26072. (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.
26073. (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 26072.
(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.
26074. (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.
Article 4. Appropriation and Reporting
26080. (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 chapter. The moneys appropriated
shall remain in the Renewable Resource Trust Fund until the funds are
needed by the authority pursuant to this chapter.
(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
chapter.
(c) All repayments of moneys disbursed pursuant to this chapter
shall be deposited into the Renewable Resource Trust Fund.
26081. (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 Article 2 (commencing with Section 26060) and a summary of the
loans that received assistance pursuant to Article 3 (commencing with
Section 26070).
(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 chapter.
(5) Information on energy and water savings resulting from the
PACE programs or loans that received assistance pursuant to this
chapter.
(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.
26082. (a) Notwithstanding Section 26080, twenty-five million
dollars ($25,000,000) of the unencumbered balance of the fifty
million dollars ($50,000,000) that was appropriated to the authority
pursuant to Section 26080 and is in the Renewable Resource Trust Fund
is hereby appropriated to the Energy Conservation Assistance Account
established pursuant to Section 25416.
(b) Notwithstanding Section 25421, any unexpended funds
appropriated pursuant to subdivision (a) remaining in the Energy
Conservation Assistance Account on and after January 1, 2013, except
to the extent those funds are encumbered pursuant to Section 25417.5,
shall revert to the Renewable Resource Trust Fund and be available
to the authority for the purposes of this chapter.
SEC. 33. Division 16.2 (commencing with Section
26100) of the Public Resources Code is
repealed.
SEC. 34. Section 6010.8 of the Revenue
and Taxation Code is amended to read:
6010.8. (a) "Sale" and "purchase" do not
include any lease or transfer of title of tangible
personal property constituting any project to the California
Alternative Energy and Advanced Transportation Financing Authority
by any participating party, nor any lease or transfer of title of
tangible personal property constituting any project by the authority
to any participating party , when the transfer or
lease is made pursuant to Division 16 (commencing with Section 26000)
of the Public Resources Code . The terms "project"
and "participating party" as As used in this
section have the same meanings as "project"
has the meaning specified in subparagraph (B) of paragraph
(8) of subdivision (a) of Section 26003 of the Public
Resources Code and "participating party" has the meaning
specified in subparagraph (B) of paragraph (7) of subdivision (a) of
Section 26003 of the Public Resources Code .
(b) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 35. Section 6010.8 is added to the
Revenue and Taxation Code , to read:
6010.8. (a) "Sale" and "purchase" do not include any lease or
transfer of title of tangible personal property constituting any
project to any participating party. As used in this section "project"
has the meaning specified in subparagraph (B) of paragraph (7) of
subdivision (a) of Section 26003 of the Public Resources Code and
"participating party" has
the meaning specified in subparagraph (B) of paragraph (6) of
subdivision (a) of Section 26003 of the Public Resources Code.
(b) This section shall become operative on July 1, 2016.