BILL NUMBER: SB 1207	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 25, 2016
	PASSED THE ASSEMBLY  AUGUST 18, 2016
	AMENDED IN ASSEMBLY  JUNE 15, 2016

INTRODUCED BY   Senator Hueso

                        FEBRUARY 18, 2016

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1207, 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. 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.
   This bill would extend the operation of all of 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. 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.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25417.5 of the Public Resources Code is amended
to read:
   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.
   (2) Pledge collateral to secure the repayment of moneys borrowed
pursuant to paragraph (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 loans
made pursuant to this chapter or former Chapter 5.4 (commencing with
Section 25440) or the principal and interest payments on loans made
pursuant to this chapter or former Chapter 5.4 (commencing with
Section 25440). These pledges shall be subject to Chapter 5.5
(commencing with Section 5450) of Division 6 of Title 1 of the
Government Code.
   (3) Sell loans made pursuant to this chapter or former 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, including the pledging of loans or the principal and interest
payment on loans as collateral to secure the repayment of bonds or
other borrowings by the California Infrastructure and Economic
Development Bank, and 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 former Chapter 5.4 (commencing with Section
25440), and is supplemental and additional to powers conferred by
other laws.
  SEC. 2.  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.