Amended in Assembly June 15, 2016

Senate Bill No. 1207

Introduced by Senator Hueso

February 18, 2016

An act to amend begin delete Section end delete begin insert Sections 25417.5 and end insert 25421 of the Public Resources Code, relating to energy, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 1207, as amended, Hueso. Energy: conservation: financial assistance.

Existing law requires the State Energy Resources Conservation and Development Commission to administer the State Energy Conservation Assistance Account, a continuously appropriated account in the General Fund, to provide grants and loans, until January 1, 2018, to schools, hospitals, public care institutions, and local governments to maximize energy use savings. begin insert For this purpose, existing law authorizes the commission, among other things, to borrow moneys from specified entities, including the California Infrastructure and Economic Development Bank, as specified, and pledge specified loans or the principal and interest payments on those loans to provide collateral in connection with those borrowed moneys. Existing law also authorizes the commission to enter into pledge agreements setting forth the terms and conditions pursuant to which the commission is making those pledges. end insert

This bill would extend the operation of begin insert all of end insert those provisions to January 1, 2028, and would thereby make an appropriation by extending the time during which the funds deposited in a continuously appropriated account are made available for expenditure. begin insert The bill would authorize the commission to pledge collateral to secure the repayment of bonds or other borrowings by the California Infrastructure and Economic Development Bank. The bill would also expressly authorize the commission to enter into pledge agreements pursuant to which the commission is pledging collateral to secure the repayment of bonds or other borrowings by the California Infrastructure and Economic Development Bank. end insert

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 25417.5 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25417.5.  

(a) In furtherance of the purposes of the commission
as set forth in this chapter, the commission has the power and
authority to do all of the following:

(1) Borrow money, for the purpose of obtaining funds to make
loans pursuant to this chapter, from the California Economic
Development Financing Authority, the California Infrastructure
and Economic Development Bank, and the California Consumer
Power and Conservation Financing Authority from the proceeds
of revenue bonds issued by any of those agencies.

begin delete end delete
(2)  begin delete Pledge, to provide end delete begin insert Pledge end insert collateral begin delete in connection with end delete begin insert to
secure end insert the begin delete borrowing end delete begin insert repayment end insert of begin delete money end delete begin insert moneys borrowed end insert
pursuant to paragraph begin delete (1), end delete begin insert (1) or of bonds or other borrowings by
the California Infrastructure and Economic Development Bank.
The commission may pledge, as collateral for these purposes, the end insert
loans made pursuant to this chapter or begin insert former end insert Chapter 5.4
(commencing with Section begin delete 25440), end delete begin insert 25440) end insert or the principal and
interest payments on loans made pursuant to this chapter or begin insert former end insert
Chapter 5.4 (commencing with Section 25440). begin insert These pledges
shall be subject to Chapter 5.5 (commencing with Section 5450)
of Division 6 of Title 1 of the Government Code. end insert

(3) Sell loans made pursuant to this chapter or begin insert former end insert Chapter
5.4 (commencing with Section 25440), at prices determined in the
sole discretion of the commission, to the California Economic
Development Financing Authority, the California Infrastructure
and Economic Development Bank, and the California Consumer
Power and Conservation Financing Authority to raise funds to
enable the commission to make loans to eligible institutions.

(4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by
the California Economic Development Financing Authority, the
California Infrastructure and Economic Development Bank, or the
California Consumer Power and Conservation Financing Authority
as conditions of issuing bonds to fund loans to, or the purchase of
loans from, the commission.

(b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the commission may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
commission is pledging loans or the principal and interest payment
on loans, begin insert including the pledging of loans or the principal end insert and
begin insert interest payment on loans as collateral to secure the repayment
of bonds or other borrowings by the California Infrastructure and
Economic Development Bank, and end insert may also agree to have the
loans held by bond trustees or by independent collateral or escrow
agents and to direct that payments received on those loans be paid
to those trustee, collateral, or escrow agents.

(c) The commission may employ financial consultants, legal
advisers, accountants, and other service providers, as may be
necessary in its judgment, in connection with activities pursuant
to this chapter.

(d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method
for implementing the measures authorized by this chapter,
including the authority of the eligible institutions or local
jurisdictions to have borrowed and to borrow in the future pursuant
to loans made pursuant to this chapter or begin insert former end insert Chapter 5.4
(commencing with Section 25440), and is supplemental and
additional to powers conferred by other laws.

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

Section 25421 of the Public Resources Code is
amended to read:

25421.  

(a) Except as provided in subdivision (b), this chapter
shall remain in effect only until January 1, 2028, and as of that
date is repealed, unless a later enacted statute, which is enacted
before January 1, 2028, deletes or extends that date.

(b) Except as specified in subdivisions (c) and (d), all loans
outstanding as of January 1, 2028, shall continue to be repaid on
a semiannual basis, as specified in Section 25415, until paid in
full. All unexpended funds in the State Energy Conservation
Assistance Account on January 1, 2028, and after that date, shall
revert to the General Fund.

(c) To the extent required under applicable bond obligations,
unexpended funds from the proceeds of bonds sold pursuant to
Section 25417.5 that remain in the State Energy Conservation
Assistance Account on January 1, 2028, shall remain in the
account. These funds shall be expended pursuant to the applicable
requirements for bond proceeds. Once all applicable bond
obligations have been satisfied, unexpended funds shall revert to
the General Fund.

(d) Unexpended funds from the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) remaining in the
State Energy Conservation Assistance Account on January 1, 2028,
shall revert to the Federal Trust Fund.