Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2428

Introduced by Assembly Member Ting

February 19, 2016

begin deleteAn act to amend Section 26050 of the Public Resources Code, relating to energy. end deletebegin insertAn act to amend Section 104.16 of the Streets and Highways Code, relating to state highways.end insert


AB 2428, as amended, Ting. begin deleteProperty Assessed Clean Energy Resource program. end deletebegin insertState highways: property leases.end insert

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Existing law provides that the Department of Transportation has full possession and control of the state highway system, including associated property. Existing law authorizes the department to lease certain property, including the area above or below a state highway, and certain property held for future highway purposes, to public agencies under specified terms and conditions, including specific provisions governing leases of airspace and other property in the City and County of San Francisco for purposes of an emergency shelter or feeding program, at a lease cost of $1 per month and payment of an administrative fee not to exceed $500 per year.

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This bill would revise the provisions governing leases of department property in the City and County of San Francisco under these financial terms to also authorize leases of property for park, recreational, or open-space purposes, subject to certain additional terms and conditions, including a requirement for the lessee to be responsible for all associated maintenance costs. The bill would provide for the lease to authorize the lessee to subsidize its maintenance costs through a limited revenue generation model, with any revenues generated above the maintenance costs to be shared with the state, as specified.

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Existing law requires the California Alternative Energy and Advanced Transportation Financing Authority to develop and administer a Property Assessed Clean Energy Reserve program to reduce the overall costs to property owners of a Property Assessed Clean Energy Reserve bond, or PACE bond, issued by an applicant that has established a Property Assessed Clean Energy program, or PACE program, by providing a reserve of no more than 10% of the initial amount of the PACE bond. Existing law makes various findings and declarations regarding PACE financing.

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This bill would make a nonsubstantive change to the findings and declarations.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 104.16 of the end insertbegin insertStreets and Highways Codeend insert
2begin insert is amended to read:end insert



(a) Any airspace under a freeway, or real property
4acquired for highway purposes, in the City and County of San
5Francisco,begin delete whichend deletebegin insert thatend insert is not excess property, may be leased by the
6department to the city and county or another political subdivision
7or a state agency for purposes of an emergency shelter or feeding
8begin delete program.end deletebegin insert program, or for park, recreational, or open-end insertbegin insertspace
9purposes.end insert

10(b) The lease shall be for one dollar ($1) per month. The lease
11amount may be paid in advance of the term covered in order to
12reduce the administrative costs associated with the payment of the
13monthly rental fee. The lease shall require the payment of an
14administrative fee not to exceed five hundred dollars ($500) per
15year, unless the department determines that a higher administrative
16fee is necessary, for the department’s cost of administering the

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18(c) In the case of a lease for park, recreational, or open-space
19purposes, the lease shall require the lessee to fund and construct
20all associated infrastructure, and to accept full responsibility for
21liability related to those uses. The lease shall require the lessee to
22be responsible for all maintenance costs associated with those
P3    1uses, except as otherwise provided in the lease. The lease shall
2authorize the lessee to subsidize its associated maintenance costs
3through generation of revenue under a limited revenue generation
4model, such as from limited parking facilities located on the leased
5property, if any revenues generated that exceed the associated
6maintenance costs are shared with the state, at a rate not less than
750 percent of those excess revenues, with that amount to be
8deposited in the State Highway Account.

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10begin insert(d)end insert The Legislature finds and declares that the lease of real
11property pursuant to this section serves a public purpose.

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Section 26050 of the Public Resources Code is
13amended to read:



(a) The Legislature finds and declares all of the

16(1) Property Assessed Clean Energy (PACE) financing has been
17pioneered by municipalities and counties in California as a way
18for homeowners and small business owners to finance voluntary
19energy and water efficiency and clean energy improvements.

20(2) PACE financing was pioneered in the City of Berkeley,
21while the City and County of San Francisco, City of San Diego,
22City of Palm Desert, Sonoma County, and the California Statewide
23Communities Development Authority have already initiated or are
24working to launch additional programs.

25(3) Seventeen other states, including Colorado and New York,
26have also enacted enabling PACE legislation.

27(4) The public subsidy provided by the PACE financing is
28justified by the benefits received in job creation, lower energy
29demand, and spurring new clean industries that will grow the

31(b) It is the intent of the Legislature to assist local jurisdictions
32in financing the installation of distributed generation renewable
33energy sources, electric vehicle charging infrastructure, or energy
34or water efficiency improvements that are permanently fixed to
35real property through the use of voluntary contractual assessments.

36(c) It is not the intent of the Legislature to create any debt,
37liability, or obligation on the part of the state in assisting local
38 jurisdictions pursuant to this division.

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