BILL NUMBER: AB 2597 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Ting
( Principal coauthor: Senator
Pavley )
FEBRUARY 21, 2014
An act to add and repeal Section 25230
amend Sections 26052, 26055, 26060, 26061, 26062, and 26063 of
the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2597, as amended, Ting. Energy: electric vehicles:
grid impact. PACE program.
Existing law authorizes a public agency and a property owner to
enter into voluntary contractual assessments to finance the
installation of distributed generation renewable energy sources or
energy or water efficiency improvements that are permanently affixed
on real property (PACE financing program).
Existing law requires the California Alternative Energy and
Advanced Transportation Financing Authority to establish a Property
Assessed Clean Energy (PACE) Reserve program to assist local
jurisdictions in financing, among other things, the installation of
distributed generation renewable energy sources or energy or water
efficiency improvements on residential projects. Existing law
requires the authority, in considering the eligibility of a public
agency's PACE financing program for assistance under the PACE Reserve
program, to consider whether the PACE program provides a loan that
is less than 10% of the value of the property.
This bill would authorize the PACE program to provide an
assessment that is less than 15% of the value of the property.
Existing law establishes the State Energy Resources Conservation
and Development Commission and requires the commission to conduct
assessments and forecasts of all aspects of energy industry supply,
production, transportation, delivery, and distribution.
This bill would require the commission, on or before December 1,
2015, to submit a report to the Legislature on the feasibility,
potential benefits, and electrical grid impacts of using electric
vehicles as an energy storage device for meeting load demands placed
on the electrical grid. The bill would repeal this provision on
January 1, 2020.
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 26052 of the Public
Resources Code is amended to read:
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, or an entity administering a PACE loan
assessment program on behalf of and with written
consent of a public agency, 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.
SEC. 2. Section 26055 of the Public
Resources Code is amended to read:
26055. "PACE program" means a program established by an applicant
that is financed by the PACE bond or a PACE loan
assessment program regardless of funding sources.
SEC. 3. Section 26060 of the Public
Resources Code is amended to read:
26060. (a) 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.
(b) The authority shall develop and administer a PACE risk
mitigation program for PACE loans assessments
to increase their acceptance in the marketplace and protect
against the risk of default and foreclosure.
SEC. 4. Section 26061 of the Public
Resources Code is amended to read:
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 assessment
structure and credit underwriting criteria as determined by the
authority are met.
(c) Proceeds of the PACE bonds are used to finance qualified
energy and water efficiency, electric vehicle charging
infrastructure, and clean energy improvements.
(d) The improvement financed is for a residential project of three
units or fewer, or a commercial project that costs less than
twenty-five thousand dollars ($25,000) in total.
SEC. 5. Section 26062 of the Public
Resources Code is amended to read:
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, information
regarding any credit enhancement or loan insurance
associated with a the PACE
loan assessment program, and other information
deemed necessary by the authority.
SEC. 6. Section 26063 of the Public
Resources Code is amended to read:
26063. (a) In evaluating eligibility, the authority shall
consider whether the applicant's PACE program includes the following
conditions:
(1) Loan Assessment recipients are
legal owners of underlying property.
(2) Loan Assessment recipients are
current on mortgage and property tax payments.
(3) Loan Assessment
recipients are not in default or in bankruptcy proceedings.
(4) Loans are Assessment is for less
than 10 15 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 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 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, credit enhancement, or loan
insurance.
(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.
SECTION 1. Section 25230 is added to the Public
Resources Code, to read:
25230. (a) On or before December 1, 2015, the commission shall,
pursuant to Section 9795 of the Government Code, submit to the
Legislature a report on the feasibility, potential benefits, and
electrical grid impacts of using electric vehicles as an energy
storage device for meeting load demands placed on the electrical
grid.
(b) Pursuant to Section 10231.5 of the Government Code, this
section is inoperative on December 1, 2019, and is repealed on
January 1, 2020.