BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1121|
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THIRD READING
Bill No: SB 1121
Author: De León (D)
Amended: 4/29/14
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 5-2, 4/24/14
AYES: Wolk, Beall, DeSaulnier, Hernandez, Liu
NOES: Knight, Walters
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/14
AYES: De León, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : The California Green Bank Board
SOURCE : Author
DIGEST : This bill creates the California Green Bank Board,
which will be charged with evaluating current state financial
support for clean energy projects and identifying firms and
projects that will advance the states policy objectives.
ANALYSIS : Existing law authorizes several authorities within
the State Treasurer's Office to issue conduit bonds, whereby a
public agency sells a bond, then loans the proceeds to a
nongovernmental borrower, such as a hospital or factory. Only
the nongovernmental borrower's loan repayments secure the bond.
The state authorizes the California Infrastructure and Economic
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Development Bank to support economic development and public and
private infrastructure investments through its authority to
issue bonds, make loans and, provide credit enhancements.
This bill creates the California Green Bank Board (Board),
composed of seven members:
One member appointed by the Senate Rules Committee.
One member appointed by the Speaker of Assembly.
One member appointed by the State Treasurer.
One member appointed by the Director of Finance.
One member appointed by the Public Utilities Commission.
One member appointed by the California Energy Commission.
One member appointed by the Air Resources Board.
This bill specifies 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 Board is required to
make specific recommendations relating to its duties in a report
to the Legislature, on or before January 1, 2016.
The Board shall have all of the following powers:
To meet at any time and place it deems proper.
To employ staff, pursuant to laws and regulations governing
state civil service.
To contract with experts in clean technology development and
finance.
To cooperate with every department, agency, or instrumentality
in the state government.
To receive any data, the access to which is not restricted by
any state or federal law, that is necessary to prepare the
required report.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Unknown costs, likely approximately $1.2 million, from the
General Fund for staffing needs collectively at the Board and
by member agencies.
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Unknown contract costs, likely between $900,000 and $2.7
million, from the General Fund for contracts.
SUPPORT : (Verified 5/23/14)
Agrion
Bernheim and Dean, Inc.
California Clean Energy Fund
Clean TECH San Diego
Chargepoint
Coalition for Green Capital Action Fund
DBL Investors
Environmental Defense Fund
EV Communities Alliance
Natural Resources Defense Council
Passive House Alliance US
Silicon Valley Leadership Group
Strategy and Finance Center for Market Innovation
Sungevity
SunRun
ARGUMENTS IN SUPPORT : According to the author:
A California Green Bank would use a portion of cap and trade
auction revenue proceeds to promote widespread deployment of
clean technologies by leveraging private investment, to better
optimize our limited public dollars. The Green Bank would
coordinate with and enhance existing energy programs to
achieve the state's greenhouse-gas reduction goals set forth
in AB 32 [Nunez, Chapter 488, Statutes of 2006] and beyond.
While California has established itself as a leader in the
development and deployment of clean technologies, barriers to
widespread scalability and adoption persist. These barriers
include high upfront costs and limited financing options for
consumers and businesses, and lack of familiarity and
perceived risk for investors due to lack of data and small and
expensive transactions.
Although the market for clean, low-carbon technologies has
continued to expand, cleaner, cheaper, and more reliable
energy remains unavailable to many California consumers and
businesses. A California Green Bank would be a publicly
funded financing institution that provides low-cost, long-term
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financing support to clean, low-carbon projects that otherwise
would be unlikely to attract private financing. A green bank
leverages public funds through the use of financial mechanisms
to attract private investment so that each public dollar
supports multiple dollars of private investment. Several
states, including Connecticut, Hawaii, and New York have
already established green banks to help animate private
capital in clean energy projects. Green Banks in other states
often attract $4 in private dollars for every $1 of state
investment. Since 2011, Connecticut's Green Bank has
prevented the emissions of 250,000 tons of CO2, deployed 30MW
[megawatts] of clean energy, and created 1,200 jobs.
AB:ndk 5/25/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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