BILL NUMBER: SB 1121 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 29, 2014
AMENDED IN SENATE APRIL 10, 2014
INTRODUCED BY Senator De León
FEBRUARY 19, 2014
An act to add and repeal Part 11.5 (commencing
with Section 15880) to Division 3 of Title 2 of the Government Code,
and to amend Section 39712 of the Health and Safety Code,
relating to state government, and making an
appropriation therefor. government.
LEGISLATIVE COUNSEL'S DIGEST
SB 1121, as amended, De León. The California Green Bank.
Bank Board.
(1) The
The Bergeson-Peace Infrastructure and Economic
Development Bank Act authorizes the California Infrastructure and
Economic Development Bank, governed by a board of directors, to make
loans, issue bonds, and provide other assistance for various types of
economic development projects, among other things. The activities of
the bank under these provisions are funded from the California
Infrastructure and Economic Development Bank Fund, which is
continuously appropriated for these purposes.
This bill would establish until January 1, 2036,
the California Green Bank to, among other things,
serve as a provider of bond guarantees, loans, loan guarantees, the
warehousing of loans, securitization, insurance, portfolio insurance,
credit enhancements, and other forms of financing support and risk
management for clean energy projects and innovative energy technology
projects, as those terms are defined. The bank would be governed by
a board of directors Board composed of
11 7 members appointed by the Governor,
the Legislature, and including various heads of
executive branch entities, as specified, to serve terms of
office to be determined by the board. The act would authorize the
board to select a chief executive officer to manage and conduct the
business of the bank, at the direction of the board, and to select an
executive vice president and 2 divisional vice presidents and hire
staff. The act would require these employees to be compensated at
prevailing rates of compensation for similar positions in private
industry. The act would authorize the bank to employ or contract with
banks, credit agencies, and attorneys, at customary commercial rates
to carry out the activities and mission of the bank, including, but
not limited to, administrative and operative functions.
one member appointed by the Senate Committee on Rules, and one
member appointed by the Speaker of the Assembly. The bill would
specify the duties and responsibilities of the board, including the
duty to evaluate current state financial support for commercially
viable clean energy projects and innovative energy technology
projects. The bill would also require the board to make specific
recommendations relating to its duties in a report to the
Legislature, on or before January 1, 2016.
The act would specifically authorize the bank to issue bonds that
may have a maturity of not more than 50 years and are exempt from
state taxation. The act would limit the repayment of bonds to the
extent funds are available to the bank and would provide that
repayment is not backed by the full faith and credit of the state.
The act would require the bank to establish a program to provide
loans, loan guarantees, securitization, insurance, portfolio
insurance, and other forms of financing support, as the bank
determines is appropriate for qualified clean energy projects. The
act would require the bank to charge fees for bond guarantees, and
would authorize the bank to facilitate financing in tax equity
markets and take a nonvoting equity or membership interest in
innovative energy technology projects or developers. The act also
would authorize the bank to take certain actions if a sponsor or
developer of an innovative energy technology projects defaults on its
financing support.
The act would establish the California Green Bank Fund, to receive
local, state, federal, and private moneys, as a continuously
appropriated fund for the purpose of implementing the act.
The act annually requires the bank to submit a report to the
Governor and the Legislature on its activities and to be
independently audited.
(2) The California Global Warming Solutions Act of 2006 requires
the State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and,
among other things, authorizes the state board to include use of
market-based compliance mechanisms. Existing law requires all moneys,
except for fines and penalties, collected by the state board from
the auction or sale of allowances as part of a market-based
compliance mechanism to be deposited in the Greenhouse Gas Reduction
Fund and to be available upon appropriation by the Legislature.
Existing law authorizes the allocation of moneys appropriated from
the Greenhouse Gas Reduction Fund for the purpose of reducing
greenhouse gas emissions through, among other things, investments in
programs implemented by local and regional agencies and
collaboratives, and by nonprofit organizations coordinating with
local governments.
This bill would specify that these investments include the
California Green Infrastructure Bank.
(3) Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
This bill would make legislative findings to that effect.
Vote: 2/3 majority . Appropriation:
yes no . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 11.5 (commencing with Section
15880) is added to Division 3 of Title 2 of the Government
Code , to read:
PART 11.5. The California Green Bank Act
15880. (a) There is in state government the California Green Bank
Board. The board shall be composed of the following members:
(1) The Treasurer.
(2) The Director of Finance.
(3) The President of the California Public Utilities Commission.
(4) The Chair of the California Energy Commission.
(5) The Chair of the State Air Resources Board.
(6) One person appointed by the Senate Committee on Rules.
(7) One person appointed by the Speaker of the Assembly.
(b) The members listed in paragraphs (1) to (5), inclusive, of
subdivision (a) may each designate a deputy or clerk from within his
or her agency to act for and represent him or her at all meetings of
the board.
(c) All members of the board shall serve thereon without
compensation, but shall be reimbursed for all necessary expenses
actually incurred in the performance of their duties.
15880.5. The board shall have all of the following duties and
responsibilities:
(a) Evaluate current state financial support for commercially
viable clean energy projects not currently able to obtain financing
in the capital markets at a reasonable cost with a reasonable rate of
return to a clean energy project developer, and for innovative
energy technology projects not currently able to obtain financing.
(b) Identify the firms and projects for which new forms of
financial assistance will advance the state's policy objectives,
including, but not limited to, reduction in greenhouse gases.
(c) Recommend specific forms of financial assistance that will
assist these projects and firms with an acceptable amount of risk for
the state.
15880.10. (a) The board shall make specific recommendations
relating to the duties listed in Section 15880.5 in a report to the
Legislature, on or before January 1, 2016.
(b) (1) The report described in subdivision (a) shall be submitted
in compliance with Section 9795.
(2) Pursuant to Section 10231.5, this section is repealed on
December 1, 2020.
15880.15. In carrying out its duties and responsibilities, the
board shall have all of the following powers:
(a) To meet at any time and place it deems proper.
(b) To employ staff, pursuant to laws and regulations governing
state civil service.
(c) To contract with experts in clean technology development and
finance.
(d) To cooperate with every department, agency, or instrumentality
in the state government.
(e) To receive any data, the access to which is not restricted by
any state or federal law, that is necessary to prepare the report
described in subdivision (a) of Section 15880.10. All matter
omitted in this version of the bill appears in the bill as amended in
the Senate, April 10, 2014. (JR11)