BILL NUMBER: SB 1130 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 27, 2012
AMENDED IN ASSEMBLY JUNE 7, 2012
AMENDED IN SENATE APRIL 19, 2012
INTRODUCED BY Senator De León
(Principal coauthor: Assembly Member Skinner)
FEBRUARY 21, 2012
An act to add Chapter 13 (commencing with Section 25987.1) to
Division 15 of the Public Resources Code, relating to energy, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1130, as amended, De León. Energy: energy assessment:
commercial nonresidential buildings: financing.
Existing law requires the State Energy Resources Conservation and
Development Commission to implement a program to provide financial
assistance for energy efficiency projects.
This bill would enact the Commercial
Nonresidential Building Energy Retrofit Financing Act of 2012
and would require the commission to establish the Commercial
Nonresidential Building Energy Retrofit
Financing Program and to hire a third-party administrator by July 1,
2013, to develop and operate the program to provide financial
assistance, through authorizing the issuance of, among other things,
revenue bonds, to owners of eligible commercial properties
nonresidential buildings for implementing energy
improvements for their properties. The bill would provide that the
bonds are secured by the recording of an energy remittance repayment
agreement, as defined, on the deed of the property for which the
improvements are performed. The bill would require the State Board of
Equalization to collect installment payments from owners of eligible
properties whose applications have been approved by the commission.
This bill would require the commission to meet, for the purpose of
approving applicants to participate in the program and authorizing
the issuance of, among other things, negotiable bonds to generate
moneys sufficient to finance energy efficiency retrofit measures
specified on applications that have been approved prior to the
meeting. The bill would authorize the Treasurer
California Alternative Energy and Advanced Transportation
Financing Authority, on behalf of the commission, to issue and
renew the negotiable bonds.
This bill would establish the Commercial
Nonresidential Building Energy Retrofit Debt Servicing Fund,
the Loan Loss Reserve Account, and the Administration Account within
the fund. The bill would require the State Board of Equalization to
deposit the installment payment received from the owners of eligible
properties buildings into the fund and
the fees collected into the specified accounts. The bill would
continuously appropriate the moneys in the fund and the accounts to
repay the principal and interest on the bonds, and to cover the
administrative costs incurred by the Treasurer
authority , the commission, and the State Board of
Equalization, thereby making an appropriation.
The bill would require the Director of Finance to transfer, as a
loan, up to $1,000,000, to the authority, and up to $7,000,000, to
the commission, from the General Fund for the purposes of
implementing the program. The bill would require the loans to be
repaid on or before January 1, 2023.
Existing law establishes incentives in the form of grants and
loans to low-income residents, small businesses, and residential
property owners for constructing and retrofitting buildings to be
more energy efficient.
The bill would also require the State Energy Resources
Conservation and Development Commission to analyze and evaluate
standards for commercial nonresidential
energy building.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 13 (commencing with Section 25987.1) is added
to Division 15 of the Public Resources Code, to read:
CHAPTER 13. COMMERCIAL NONRESIDENTIAL
BUILDING ASSESSMENT FINANCING
Article 1. General Provisions and Definitions
25987.1. This act shall be known, and may be cited, as the
Commercial Nonresidential Building
Energy Retrofit Financing Act of 2012.
25987.2. The purpose of this chapter is to facilitate private
financing to enable private commercial
nonresidential building owners and eligible public
entities to invest in clean energy improvements, renewable
energy, and conservation, to incentivize private equity
managers to invest in clean energy improvements, integrate the
smart energy economy, and to stimulate the state
economy by directly creating jobs for contractors and other persons
who complete new energy improvements, and to reinforce the leadership
role of the state in the new energy economy, thereby attracting
energy manufacturing facilities and related jobs to the state.
25987.3. The Legislature finds and declares all of the following:
(a) Commercial Nonresidential
buildings represent a huge opportunity to significantly increase
energy efficiency and reduce greenhouse gas emissions. To do this, we
need to address the design, construction, and operation of these
buildings.
(b) The lack of accessible and affordable financing for energy
efficiency retrofits results in energy-inefficient buildings that are
estimated to consume up to 50 percent more energy than required to
achieve the same level of comfort. Energy use in the building sector
accounts for approximately 20 percent of global emissions of carbon
dioxide, or 10 billion tons, annually.
(c) It is possible to retrofit the California commercial
nonresidential building stock to use, on
average, at least 50 percent less energy by 2050 through the wide
adoption of deep energy retrofits that save more energy and increase
profits for building owners.
(d) Investment in building performance upgrades is an intelligent
business decision. Building performance upgrades lower operating
costs, improve occupant comfort, hedge against utility price
increases, demonstrate commitment to tenant well-being, reduce
exposure to regulation, help the environment, and ultimately boost
property values.
(e) It is in the best interest of the state and its citizens to
enable and encourage the owners of eligible commercial
nonresidential property to invest in new energy
improvements, including energy efficiency improvements that
qualify for investor-owned utility or publicly-owned utility programs
, water efficiency improvements, and renewable energy
improvements, by enacting this division to establish, develop,
finance, implement, and administer a new energy improvement program
that provides for both energy efficiency improvements and renewable
energy improvements and to assist those owners who choose to
participate in the program to complete new energy improvements to
their properties because of the following:
(1) New energy improvements, including energy efficiency
improvements and renewable energy improvements, can provide positive
cashflow when the costs of the improvements are spread out over a
long enough time that building's cumulative utility bill cost savings
exceed the amount of the liens recorded on the eligible buildings to
assure ensure payment for the
improvements.
(2) Many owners of eligible commercial
nonresidential buildings are unable to fund a new energy
improvement because the owners do not have sufficient liquid assets
to directly fund the improvement or are unable or unwilling to incur
the negative net cashflow likely to result if the owner uses a
typical existing loan program to fund the improvement.
(f) Reduction in the amount of emissions of greenhouse gases and
environmental pollutants resulting from increased efficiencies and
the resulting decreased use of traditional nonrenewable fuels will
improve air quality and may help to mitigate climate change.
(g) The commercial nonresidential
building owners who participate in the program established pursuant
to this division to assist them in completing new energy
improvements, including energy efficiency improvements and renewable
energy improvements, to the property shall do so voluntarily.
25987.4. Unless the context otherwise requires, for the purposes
of this division chapter , the
following terms have the following meanings:
(a) (1) "Alternative sources of energy" or "alternative energy
sources" means energy from renewable cogeneration or gas-fired
cogeneration technology that meets the greenhouse gas emissions and
efficiency standards applicable to the Self-Generation Incentive
Program in effect at the time of the application, energy storage
technologies, or energy from solar, biomass, wind, or geothermal
systems, or fuel cells, or any other source of energy that reduces
greenhouse gas emissions, the efficient use of which will reduce the
use of conventional energy fuels.
(2) The system shall be sized appropriately to offset part or all
of the applicant's own electricity demand and shall be located on the
same premises of the application where the applicant's own
electrical demand is located.
(a)
(b) "Applicant" means a person, or an entity
or group of entities, engaged in business or operations in the
state, whether organized for profit or not for profit that owns
a nonresidential building and applies for financial assistance
from the commission for the purpose of implementing a project in a
manner prescribed by the commission.
(b) "Alternative sources of energy" or "alternative energy sources"
means energy from cogeneration technology, the conservation of
energy, or energy from solar, biomass, wind, geothermal, or any other
source of energy, the efficient use of which will reduce the use of
conventional energy fuels.
(c) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004.
(c)
(d) "Board" means the State Board of
Equalization.
(d) "Commercial Building Energy Retrofit Bond" means a bond issued
pursuant to Section 26987.28 that is secured by an energy remittance
repayment agreement on property entered into voluntarily to finance
the installation of renewable energy sources, energy efficiency
improvement or retrofits, or water efficiency improvements.
(e) "Conventional energy fuel" means any of the following:
(1) A fuel derived from petroleum deposits, including, but not
limited to, oil, heating oil, gasoline, and fuel oil.
(2) Natural gas, including liquified natural gas.
(3) Nuclear fissionable materials.
(f) "Demand response" means energy storage, controls, and
associate equipment that permits altering the timing of energy
demand in return for economic reward based on time of use pricing or
demand response incentive reductions or shifts in
electricity consumption by customers in response to either economic
or reliability signals .
(g) "Eligible building" means a commercial or industrial
nonresidential building that completed
construction on or before January 1, 2013 and located within
the boundaries of the state.
(h) "Energy efficiency improvement or retrofit
" means one or more installations or modifications to an
eligible property building for which a
building permit was not obtained before January 1, 2013 and
that are is designed to reduce the
energy consumption of the building and includes,
that qualifies for investor-owned utility or publicly-owned
utility energy efficiency programs that may include, but is not
limited to, all of the following to the extent they qualify
:
(1) High-efficiency mechanical equipment.
(2) High-efficiency electrical equipment.
(3) Capturing or reducing heat gain or solar shading, including
the roof and south and west walls, and not just glazing.
(4) High-efficiency water heating.
(5) Insulation in walls, roofs, floors, and foundations and in
heating and cooling distribution systems.
(6) Storm windows and doors, multiglazed windows and
doors, heat-absorbing or heat-reflective glazed and coated window and
door systems, additional glazing, Fenestration
and door replacement, reductions in glass area, and other
window and door system fenestration and door
modifications that reduce energy consumption.
(7) Automatic energy control systems.
(8) Heating, ventilating, or air conditioning and distribution
system modifications or replacements.
(9) Caulking and weather stripping.
(10) Replacement or modification of lighting fixtures
luminaries to increase the energy efficiency of
the system , or additional lighting controls to reduce electric
lighting during period of vacancy .
(11) Energy recovery and energy storage
systems.
(12) Daylighting systems and associated lighting controls for
daylight harvesting .
(13) A modification, installation, or remodeling approved as a
utility cost-savings measure by the State Energy Resources
Conservation and Development Commission commission
, and which may include measures described in the Database for
Energy Efficiency Efficient Resources
(DEER) overseen by the California
Public Utilities Commission (CPUC) and
utilized by investor-owned utilities and energy efficiency
specialists participating in their Energy Efficiency (EE)
programs.
(14) Plug load solutions.
(15) Building commissioning or retrocommissioning
(i) "Energy remittance repayment agreement" means a contractual
agreement between an eligible building owner and the commission,
secured by a lien , as described in Section 25987.21,
recorded in the county where the property is situated and
on an eligible building specially benefited by a new energy
improvement for which the commission will make reimbursement or a
direct payment to the party financing the energy improvements, and
"contractual energy remittance" means that reimbursement or direct
payment. The amount to be repaid pursuant to the energy remittance
repayment agreement shall include the costs necessary to finance the
energy efficiency improvements less any rebates, grants, and other
direct financial assistance received by the owner pursuant to other
law and a loan loss reserve fee that is not less than 1.5
percent in an amount to be established by the
program administrator of the financing costs
in consultation with the commission and the warehouse financier under
contract entered into pursuant to paragraph (8) of subdivision (a)
of Section 25987.25 to insure against nonperformance of the
loan and other losses of the program, and a program administrative
cost fee.
(j) "Energy efficiency specialist" means an individual or business
certified by rules or requirements of the State Energy
Resources Conservation and Development Commission, the Public
Utilities Commission, an investor-owned utility, or a publicly owned
utility of the commission to analyze, evaluate,
or install a renewable energy source, energy efficiency improvement,
or water efficiency improvement for eligible property.
(k) "Financial assistance" means either of the following:
(1) Loans, loan loss reserves, interest rate reductions, secondary
loan purchase, insurance, guarantees or other credit enhancements or
liquidity facilities, contributions of money, property, labor, or
other items of value, or any combination thereof, as determined by,
and approved by a resolution of, the commission.
(2) Other types of assistance the commission determines is
appropriate.
(l) "Loan balance" means the outstanding principal balance of
loans secured by a mortgage or deed of trust with a first or second
lien on eligible property.
(m) "Loan loss reserve fee" means a fee paid by a
combination of banks, loan recipients, and government agencies,
that serves as collateral in the event of a loan default.
(n) "Nonresidential Building Energy Retrofit Bond" means a bond
issued pursuant to Section 25987.31 that is secured by an energy
remittance repayment agreement on property entered into voluntarily
to finance the installation of renewable energy sources, energy
efficiency improvement or retrofits, or water efficiency
improvements.
(n)
(o) "Participant" means a person, or an
entity or group of entities, engaged in business or operations in the
state, whether organized for profit or not for profit, that, as a
qualified applicant is approved for financial assistance pursuant to
Article 2 (commencing with Section 25987.5) of this
chapter and has entered into an energy remittance repayment agreement
with the commission for the purpose of implementing a project in a
manner prescribed by the commission.
(o)
(p) "Portfolio" means an aggregation of
approved applications.
(p)
(q) "Program" means the Commercial
Nonresidential Building Energy Retrofit
Financing Program established by the commission in accordance with
Section 26987.7 25987.7 .
(q)
(r) "Program administration cost fee"
mean means a fee imposed for the costs
incurred by the commission, the Treasurer
authority , and the State Board of Equalization to administer
the program.
(r)
(s) "Project" means a building,
an improvement to the land or
an eligible building , rehabilitation, work,
property, or structure, real or personal, stationary or mobile,
including, but not limited to, machinery and equipment, that utilizes
water efficiency improvements, alternative sources
that constitutes a water efficiency improvement, alternative source
of energy, or energy efficiency improvements
improvement .
(s)
(t) "Qualified applicant" means a person or
business entity who does all of the following:
(1) Owns an eligible building that has a ratio of loan balance to
its appraised value not to exceed 85 percent and subject to
adjustment by the program administrator at the time the person's
program application is approved, as shown in the records of the
county assessor, unless the holder of the deed of trust or mortgage
recorded against the eligible property that has priority over all
other deeds of trust or mortgages recorded against the eligible
property has consented in writing to the recording of an energy
remittance repayment agreement pursuant to this division against the
eligible property.
(2) Timely submits to the commission a complete application, which
notes the existence of any first priority mortgage or deed of trust
on the eligible property and the identity of the holder of the
mortgage or deed of trust, to join the program and consents to the
levying of a special assessment on the property pursuant to this
chapter.
(3) Meets standard of credit worthiness that the commission may
establish.
(t)
(u) "Renewable energy" means heat, processed
heat, space heating, water heating, steam, space cooling,
refrigeration, mechanical energy, electricity, fuel cells,
or energy in any form convertible to these uses, whether
produced or conserved, and including energy storage
technologies, that does not expend or use conventional energy
fuels, and that uses any of the following electrical generation
technologies:
(1) Biomass.
(2) Solar thermal.
(3) Photovoltaic.
(4) Wind.
(5) Geothermal.
(u)
(v) "Renewable energy improvement" means one
or more fixtures, products, systems, or devices, or an interacting
group of fixtures, products, systems, or devices, that directly
benefit an eligible property building
or that are installed on the user customer
side of an electric a meter of an
eligible property building and that
produce renewable energy from renewable resources,
including, but not limited to, photovoltaic, solar thermal, small
wind, low-impact hydroelectric, biomass, fuel
cells, or geothermal systems such as ground source heat pumps,
as may be approved by the commission.
Article 2. Commercial Nonresidential
Building Energy Retrofit Financing Program
25987.5. The purpose of the Commercial
Nonresidential Building Energy Retrofit Financing Program is to
help provide the special benefits of water efficiency improvements,
alternative energy, and energy efficiency improvements to owners of
eligible property buildings who
voluntarily participate in the program by establishing, developing,
financing, and administering a program to assist those owners in
completing improvements.
25987.6. The commission shall have and exercise all rights and
powers necessary or incidental to or implied from the specific powers
granted to the commission by this division
chapter . Those specific powers shall not be considered as a
limitation upon any power necessary or appropriate to carry out the
purposes and intent of this chapter.
25987.7. (a) The commission shall
establish, develop, finance, and administer pursuant to Section
25987.9 the Commercial Nonresidential
Building Energy Retrofit Financing Program. The program shall be
designed to provide financial assistance for an owner of an eligible
building to use one or more energy efficiency specialists to retrofit
the property with one or more alternative energy sources or
renewable energy improvements, energy efficiency improvements, or
water efficiency improvements, by applying to the commission for
inclusion of the owner's project in a portfolio that will be financed
through the use of the revenue bonds issued pursuant to this
chapter. These bonds shall be secured by revenues generated through
energy remittance repayment agreements recorded on the buildings
benefited by the projects in the portfolio. The
(b) (1) The
program shall provide financial assistance for energy
efficiency improvements when the total energy and water
cost savings realized by the property owner, and any successor or
successors to the property owner, during the useful life of the
improvements, as determined by an analysis required pursuant to
subdivision (i) of Section 26987.13 25987.13
are expected to equal or exceed the total costs
incurred by the owner pursuant to the program.
(2) The commission may waive the requirements of paragraph (1) by
adopting a specific finding that additional improvements may be
undertaken that significantly increase energy efficiency and increase
public health.
(c) In developing rules to certify an energy efficiency
specialist, the commission shall consult with the Public Utilities
Commission, the investor-owned utilities, the contractor community,
and other entities the commission deems appropriate and consider
existing trade certifications or licensing requirements applicable to
occupations that perform work contemplated pursuant to this chapter.
25987.8. To receive financial assistance pursuant to this
chapter, a qualified applicant shall contractually agree to the
recording of an energy remittance repayment agreement on the eligible
building that is being retrofitted.
25987.9. By July 1, 2013, the commission shall develop a request
for proposal to develop the program by a third-party administrator
and for the third-party administrator to administer the program and
establish an automated, asset-based underwriting system for all
eligible properties buildings in the
state. The party selected as the third-party administrator shall only
be selected if the program by the party submitted
by the party requires all costs, including start-up costs
of the program, to be covered by the loan recipients, the
administrator, the bond purchasers, or some combination thereof. The
program selected shall not include General Fund costs or liabilities,
with the exception of loans from the General Fund pursuant to
Section 25987.41 utilized for start-up costs , that
shall be repaid within two years .
25987.10. The third-party administrator shall establish
underwriting guidelines that consider an applicant's qualification,
and other appropriate factors, including, but not limited to, credit
reports and loan-to-value ratios, consistent with good and customary
lending practices, necessary for the Treasurer
authority to obtain a bond rating for bonds issued
pursuant to Article 3 (commencing with Section 25987.28) for a
successful bond sale.
25987.11. The third-party administrator shall disclose to an
owner of a commercial nonresidential
building all fees imposed pursuant to this chapter, including the
loan loss reserve fee, the program administration cost fee, and the
interest rate charged, prior to the submission of an application by
the building owner.
25987.12. (a) An owner of an eligible building who wishes to
undertake an energy efficiency project
improvement shall submit to the third-party administrator an
application to participate in the program.
(b) The submission of an application is deemed to be a voluntary
agreement by the owner for the commission to record the energy
remittance repayment agreement on the deed of the eligible building
upon the approval of the application.
(c) The application form developed by the third-party
administrator shall include a statement in no less than 12-point type
stating the following:
SUBMISSION OF THIS APPLICATION CONSTITUTES THE VOLUNTARY CONSENT
OF THE APPLICANT FOR THE RECORDATION OF THE ENERGY REMITTANCE
REPAYMENT AGREEMENT ON THE DEED OF THE ELIGIBLE PROPERTY. UPON THE
APPROVAL BY THE COMMISSION OF THE APPLICATION AND THE RECORDATION OF
THE ENERGY REMITTANCE REPAYMENT AGREEMENT, A LIEN IN THE AMOUNT
SPECIFIED IN THE ENERGY REMITTANCE REPAYMENT AGREEMENT SHALL BE
SECURED BY THE PROPERTY.
25987.13. The owner of an eligible building shall include all of
the following information in the application:
(a) The name, business address, and e-mail address of the owners
of the eligible building.
(b) The names of all entities that hold a secured lien on the
eligible building and their contact information.
(c) The total dollar amount of liens that have been recorded on
the eligible building.
(d) An appraisal of the value of the eligible building t
hat has been conducted within the past six months or
during an appropriate timeframe consistent with industry practices
for underwriting of nonresidential buildings .
(e) A detailed description of the energy efficiency improvements
being funded.
(f) The name of the financial institution providing interim
financing for the improvements or the warehouse facility developed
pursuant to Section 25987.26.
(g) The structure of the loan financing the energy efficiency
improvements.
(h) Any information that the commission or third-party
administrator requires to verify that the owner will complete the
project.
(i) An analysis performed by an energy efficiency specialist to
quantify the costs of the energy and water efficiency improvements,
and total energy and water cost savings realized by the owner, or his
or her successor during the effective useful life of, and
estimated carbon impacts of, the improvements, including an annual
cash flow analysis.
(j) Copies of an application that have been made for energy
efficiency incentives identified pursuant to subdivision (d) of
Section 25987.19 for any applicable retrofits.
(j)
(k) Other information deemed necessary by
the commission or the third-party administrator.
25987.14. (a) In addition to the information required under
Section 26987.13 25987.13 , an
applicant shall provide in the application a detailed description of
the property and a detailed description of the
all of the following:
(1) The eligible building.
(2) The transactional activities
associated with the eligible improvements, including
all the transactional costs
and other costs.
(3) Other information deemed
necessary by the commission or the third-party administrator.
(b) An applicant shall agree in the application to remit repayment
installments due by an electronic funds transfer under procedures
prescribed by the board.
25987.15. (a) The third-party administrator shall recommend to
the commission on the approval or disapproval of an application.
(b) The commission may approve and accept an applicant
into the program only those applicants that meet
when both of the following conditions are met :
(1) The applicant is a qualified applicant.
(2) For improvements that exceed five hundred thousand dollars
($500,000), the property owner shall obtain a guarantee on the energy
and water cost savings as quantified by the analysis required
pursuant to subdivision (i) of Section 26987.13 by obtaining energy
savings insurance issued by an A.M. Best "A" or better rated carrier
or a similar product adopted by regulation by the commission.
(2) Prior to receiving funding for renewable energy improvement or
alternative energy sources the applicant shall show both of the
following:
(A) Evidence of intent to make feasible energy efficiency upgrades
recommended by the analysis required pursuant to subdivision (i) of
Section 25987.13.
(B) Evidence of intent to enroll in eligible demand response
programs, if appropriate.
(c) The commission shall determine appropriate guarantees
necessary to ensure cost neutrality of the improvements that may
include the requirement that the owner of the eligible building
obtaining insurance issued by an A.M. Best "A" or better rated
insurance carrier or a similar product as approved by the commission.
25987.16. (a) Upon the mutual
agreement of the participant and the third-party administrator, the
third-party administrator shall establish an annualized schedule for
the repayment required by the energy remittance repayment agreement,
including the interest charged, administrative cost fee, and loan
loss fee.
(b) The board shall collect the repayment installments that become
due and payable.
(c) (1) The period for repayment of the energy remittance
repayment agreement shall not exceed the expected
effective useful life of the improvements or 20 years,
whichever is shorter.
(2) The calculated expected effective
useful life of the energy efficiency improvements shall be
calculated using methodologies approved
adopted by the commission for performing those
calculations , in consultation with the Public
Utilities Commission. The commission shall adopt the methodologies at
a publicly noticed meeting offering all interested parties an
opportunity to comment. The commission shall provide a public notice
at least 30 days prior to the meeting at which the methodology is
scheduled for adoption. The commission shall provide a public notice
at least 10 days prior to a meeting at which a substantive change is
proposed to the methodology. Notwithstanding other laws,
the methodologies adopted pursuant to this paragraph shall be
exempted from the requirements of Chapter 3.5 (commencing wi
th Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code .
(d) Upon the failure of the participant to pay any installment
toward the repayment of the energy remittance repayment agreement
when the installment becomes due and owing pursuant to the schedule
for repayment, the board shall assess a penalty on the delinquent
payment of 10 percent of the unpaid installment.
(e) Within 60 days of a failure to pay the scheduled energy
remittance, the board shall issue a demand letter to the participant
with notice provided to the commission and provide the participant
with 30 days to cure the default.
(f) (1) If the participant fails to cure the default within the
time allotted, the board shall may
declare the entire outstanding energy remittance repayment agreement
balance, including any interest due, penalties assessed, and costs of
collection incurred, immediately due and owing and foreclose on the
energy remittance repayment agreement by either judicial or
nonjudicial foreclosure .
(2) Revenue generated from the sale of the eligible building shall
be distributed to satisfy liens on the eligible building in
accordance with the priority of the liens as provided by law.
(g) A participant who is not in default may pay the entire unpaid
balance of the energy remittance repayment agreement plus any
interest accruing to the maturity of the next installment payment
without prepayment penalty.
(h)
(g) Upon the full repayment of the balance
of the energy remittance repayment agreement, and interest and
penalties that had accrued, the State Board of Equalization
board shall notify the commission of that
repayment. Within 30 days of the receipt of the notice, the board
shall record with the county in which the eligible building is
located a release of the energy remittance repayment agreement.
25987.17. (a) A participant shall remit repayment installments
due by an electronic funds transfer to the board under procedures
prescribed by the board.
(b) Any participant remitting amounts due pursuant to subdivision
(a) shall perform electronic funds transfers in compliance with the
due dates prescribed in the schedule for repayment. Payment is deemed
complete on the date the electronic funds transfer is initiated if
settlement to the state's demand account occurs on or before the
banking day following the date the transfer is initiated. If
settlement to the state's demand account does not occur on or before
the banking day following the date the transfer is initiated, payment
is deemed to occur on the date settlement occurs.
(c) Any participant who remits a repayment installment by means
other than appropriate electronic funds transfer shall pay a penalty
of 10 percent of the repayment installment incorrectly remitted.
(d) The board may prescribe, adopt, and enforce regulations
relating to the collection of the installment repayment pursuant to
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) for purposes of collecting energy remittance repayment
installments.
25987.18. (a) Prior to approving an application for inclusion
into a loan portfolio and the recordation of the energy remittance
repayment agreement, or a modification of an approved application,
the commission shall conduct a public hearing on the application or
modification.
(b) The commission shall post a notice of the hearing on the
commission's Internet Web site and provide the notice, in writing, to
all lienholders of the eligible building no later than 30 days prior
to the hearing.
(c) The notice shall specify all of the following:
(1) The name of the qualified applicant.
(2) The address of the eligible building.
(3) The amount required to be repaid by the energy remittance
repayment agreement proposed to be recorded on the eligible building.
(4) The date and place of the public hearing.
(5) The schedule for repayment of the contractual energy
remittance and associated costs as agreed upon between the qualified
applicant and the commission.
(6) The interest rate assessed pursuant to the energy remittance
repayment agreement.
(7) A detailed description of the proposed modification, if
applicable.
(d) The notice shall inform the lienholder that any complaints or
objections to either the approval of the application and the
recordation of the energy remittance repayment agreement on the
eligible building or the modification of an approved application
shall be submitted, in writing, to the commission not less than
10 days prior to the hearing.
25987.19. At the public hearing, the commission shall consider
and resolve all complaints and objections made.
25987.20. 25987.19. In evaluating
the eligibility of an applicant, the commission shall consider the
creditworthiness of the applicant and the effectiveness of the
improvements applying the following criteria, including, but not
limited to, all of the following:
(a) Whether applicants are legal owners of the underlying
property.
(b) Whether applicants are current on any outstanding mortgage and
property tax payments.
(c) Whether applicants are in default or in bankruptcy
proceedings.
(d) Whether applicants have applied for incentives available
through the energy efficiency programs offered by an electrical or
gas corporation.
(d)
(e) Whether improvements financed by the
program follow applicable standards including any guidelines adopted
by the commission.
25987.21. 25987.20. (a) The
commission shall approve an application through the adoption of a
resolution approving the application and authorizing the recording of
the energy remittance repayment agreement on the deed of the
eligible property.
(b) The resolution shall specify the amount required to be paid to
the board pursuant to the energy remittance repayment agreement, the
schedule of repayment, and the interest rate charged.
(c) The commission shall approve the modification of an approved
application through the adoption of a resolution.
25987.22. 25987.21. (a) The energy
remittance repayment agreement that is secured by a lien
recorded pursuant to this section, shall have the force, effect, and
priority of a judgement lien, and shall be subordinate to any
and all secured mortgage liens recorded against the deed of the
eligible property at the time of recording of the energy remittance
repayment agreement.
(b) Except as otherwise required by law, the energy remittance
repayment agreement shall be superior in priority to all subsequent
liens recorded on the deed of the eligible property except where
the first mortgage is refinanced, in which case the energy
remittance repayment agreement shall remain secondary to the primary
mortgage .
(c) The sale of the eligible property to enforce the payment of
general ad valorem taxes shall not extinguish the energy remittance
repayment agreement recorded on the eligible property.
(d) In the event of foreclosure, the energy remittance repayment
agreement shall not be due and owing during such time when the
property is owned by a financial institution taking title by way of
foreclosure. The amounts owing pursuant to the energy remittance
repayment agreement shall, however, continue to accrue and shall
become due 60 days after a new, nonfinancial owner shall take title.
(e) Notwithstanding any other law, in the event of a foreclosure
of the property, the energy remittance repayment agreement shall not
be extinguished, unless the outstanding balance of the energy
remittance repayment agreement, including the interest accrued and
all penalties and fees assessed prior to the foreclosure, is fully
paid through the foreclosure proceeding.
25987.23. 25987.22. (a) Thirty days
after the adoption of the resolution, the commission shall forward
the resolution, the agreement, and any other information necessary to
collect the installment repayments to the board which shall record
with the county in which the eligible building is located the energy
remittance repayment agreement on the deed of the eligible property.
The board shall notify the commission upon the recordation of the
energy remitance remittance agreement.
(b) Upon 60 days of the notice of recording of the energy
remittance repayment agreement, the commission shall include the
approved application in a portfolio posted on the commission's
Internet Web site.
25987.24. 25987.23. (a) The board
shall deposit into the Commercial
Nonresidential Building Energy Retrofit Debt Servicing Fund
established pursuant to Section 25987.38 any moneys collected
pursuant to this chapter.
(b) The board may charge a program administration cost fee on the
owner of an eligible building to cover its costs as well as the
Treasurer's authority's and the
commission's costs in implementing this chapter.
(c) Nothing in this chapter shall be construed to require investor
owned utilities or municipal utilities to serve in the role as a
third-party private guarantor or loan servicer or otherwise
provide credit support for the loan program .
25987.25. 25987.24. (a) A local
government that has issued revenue bonds pursuant to a program
providing financial assistance to commercial and residential
nonresidential buildings owners undertaking a
renewable energy, water efficiency, or energy efficiency retrofit
improvement on the buildings may apply to the commission for
participation in the program.
(b) Upon the approval of an application submitted by the local
government for the building or buildings in which that jurisdiction
is located, the commission may purchase all those outstanding revenue
bonds issued by the local government.
(c) Upon the purchase of the revenue bonds issued by the local
government by the commission, the commission succeeds to all rights
conferred upon the bondholder by those revenue bonds and the local
government shall remit revenue that is used to secure those revenue
bonds to the board.
25987.26. 25987.25. (a)
The commission shall may do
all of the following:
(a) (1)
(1) (A) On or before
July 1, 2013, analyze and evaluate standards for commercial
nonresidential energy building retrofits
previously developed by various national and international
organizations to provide uniformity and transparency for financial
institutions evaluating loan proposals for energy improvements to
commercial nonresidential properties.
(2)
(B) The evaluation shall evaluate
review existing protocols or combination of
elements of existing measurement protocols and shall be made
available in an electronic format to financial institutions and local
governments initiating loans pursuant to this chapter.
(b)
(2) Establish those standards, guidelines,
and procedures, through regulation, including, but not limited to,
standards of credit worthiness for qualification of program
applicants, that are necessary to ensure the financial stability of
the program and otherwise prevent fraud and abuse.
(3) Establish those measurement and verification standards
necessary to ensure that the energy efficiency improvements financed
pursuant to this chapter are realized at a level specified by the
commission.
(4) Consider reliance on existing trade certifications or
licensing requirements applicable to occupations that perform the
work contemplated under this chapter.
(c)
(5) Establish qualifications for the
certification of contractors to construct or install energy
efficiency improvements.
(d)
(6) Contract with a party, public or
private, to do any of the following:
(1)
(A) Ensure that appropriate and
reasonable steps are taken to monitor and verify the
quality and longevity of energy efficiency improvements
financed pursuant to this division and measure the total energy
savings achieved by the program.
(2)
(B) Monitor the total number of program
participants.
(3)
(C) Determine the total
average amount , in aggregate, paid to
contractors and financial institutions pursuant to the program.
Notwithstanding the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), upon a finding pursuant to Section 6255 of the
Government Code that the public interest is served by not
disclosing information clearly outweighs the public interest served
by disclosing information, the commission shall not disclose payments
made by an applicant or a program participant to individual
contractors or financial institutions.
(4)
(D) Calculate the number of jobs created by
the program, the number of defaults by program participants, and the
total losses from the defaults, and calculate the total dollar amount
of bonds issued by the commission to reimburse program participants.
(e)
(7) Develop a model energy aligned lease
provision that modifies, upon the agreement between the owner and
tenants of an eligible building, a commercial lease agreement
allowing the owners to recover the costs of the renewable energy,
water efficiency, or energy efficiency retrofit improvements that
result in operational savings based on the useful life of the
retrofit while protecting tenants from underperformance of the energy
efficiency improvements.
(f)
(8) Develop a request for proposal to
contract with one or more financial institutions to secure a
short-term, revolving credit facility (warehouse line of credit) for
the purpose of creating an interim financing mechanism for the loans
that would be aggregated for the purposes of issuance of a revenue
bond pursuant to Section 26987.30 25987.29.
The warehouse line of credit shall be drawn by the third-party
administrator for origination of direct loans to qualified applicants
. Credit issued under the warehouse line of credit
shall not be deemed to constitute a debt or liability of the state or
of any political subdivision thereof, or a pledge of the full faith
and credit of the state or of any political subdivision, but shall be
payable solely from the funds provided therefor. All credit
instruments shall contain a statement to the following effect:
"Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment of principal and interest on
this credit instrument."
The warehouse line of credit shall be drawn by the third-party
administrator for origination of direct loans to qualified
applicants.
(9) Adopt a standard notice and disclosure form for the purposes
of Section 25987.27.
(b) In implementing this chapter, the commission shall do all of
the following:
(1) Consult with the Public Utilities Commission, representatives
from the investor-owned and publicly owned utilities, local
governments, real estate licensees, commercial builders, commercial
property owners, small businesses, financial institutions, commercial
property appraisers, energy rating organizations, and other entities
the commission deems appropriate.
(2) Hold at least one public hearing.
(3) Adopt regulations and standards for the purposes of
implementing this chapter at a publicly noticed meeting offering all
interested parties an opportunity to comment. For the initial
adoption of the regulations and standards, the commission shall
provide a written public notice at least 30 days prior to the
meeting. For the adoption of any substantive change to the
regulations and standards, the commission shall provide a written
public notice at least 10 days prior to the meeting. Notwithstanding
any other law, a regulation or standard adopted pursuant to this
section shall be exempt from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
25987.26. Credit issued under the warehouse line of credit shall
not be deemed to constitute a debt or liability of the state or of
any political subdivision thereof, or a pledge of the full faith and
credit of the state or of any political subdivision, but shall be
payable solely from the funds provided therefor. All credit
instruments shall contain a statement to the following effect:
"Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment of principal and interest on
this credit instrument."
25987.27. (a) From the date upon which financial assistance is
approved by a resolution of the commission pursuant to Section
25987.20 and for all subsequent transactions entered into pursuant to
this chapter, a seller of real property subject to an energy
remittance repayment agreement shall deliver to the buyer an energy
remittance repayment agreement notice and disclosure as adopted by
the commission pursuant to paragraph (9) of subdivision (a) of
Section 25987.25.
(b) (1) Upon the delivery of the completed notice and disclosure
form to the buyer of real property, the seller and his or her agent
is not required to provide additional information relative to the
energy remittance repayment agreement.
(2) The information in the notice and disclosure form is deemed
sufficient to provide notice to the buyer of the existence of the
energy improvements, the energy remittance repayment agreement, and
the repayment obligation that will be assigned to, and assumed by,
the buyer upon taking title.
25987.27. 25987.28. No later than
June 30, 2014, and no later than June 30 of every fifth year
thereafter, the State Auditor shall conduct, or cause to be
conducted, a performance audit of the program. The State Auditor
shall prepare a report and recommendations on each audit conducted
and present the report and recommendations to the President pro
Tempore of the Senate and the Speaker of the Assembly.
Article 3. Commercial Nonresidential
Building Energy Retrofit Bond
25987.28. 25987.29. The
Treasurer authority , on behalf of the
commission, may incur indebtedness and issue and renew negotiable
bonds, notes, debentures, or other securities of any kind or class.
All indebtedness, however evidenced, shall be payable solely from
moneys received pursuant to this chapter and the proceeds of its
negotiable bonds, notes, debentures, or other securities and shall
not exceed the sum of two billion dollars ($2,000,000,000).
25987.29. 25987.30. The Legislature
may, by statute, authorize the Treasurer
authority to issue bonds, as defined in Section
26987.30 25987.31 in excess of the amount
provided in Section 26987.28 25987.29 .
25987.30. 25987.31. (a) On a
semiannual basis, the commission authority
shall conduct a meeting for the purpose of authorizing the
issuance of, by the adoption of a resolution, negotiable bonds,
notes, debenture, or other securities (collectively called "bonds")
for the purposes of generating sufficient moneys to fund the approved
applications in the portfolio at the time of the meeting or to repay
an outstanding balance of the participant on whose behalf
the commission has provided funds through the warehouse line of
credit. In anticipation of the sale of bonds as authorized by Section
26987.28 25987.29 , or as may be
authorized pursuant to Section 26987.29
25987.30 , the Treasurer authority
, on behalf of the commission, may issue negotiable bond
anticipation notes and may renew the notes from time to time. The
bond anticipation notes may be paid from the proceeds of sale of the
bonds of the Treasurer authority in
anticipation of which they were issued. Notes and agreements relating
to the notes and bond anticipation notes (collectively called "notes"
) and the resolution or resolutions authorizing the notes may contain
any provisions, conditions, or limitations that a bond, agreement
relating to the bond, and bond resolution of the commission
authority may contain. However, a note or
renewal of the note shall mature at a time not exceeding two years
from the date of issue of the original note.
(b) Every issue of its bonds, notes, or other obligations shall be
general obligations of the Treasurer
authority or commission payable from revenues or moneys
received pursuant to this chapter. Notwithstanding that the bonds,
notes, or other obligations may be payable from a special fund,
they that are for all purposes
negotiable instruments, subject only to the provisions of the bonds,
notes, or other obligations for registration.
(c) Subject to the limitations in Sections 26987.28
25987.29 and 26987.29
25987.30 , the bonds may be issued as serial bonds or as term
bonds, or the Treasurer authority in
its discretion, may issue bonds of both types. The bonds shall be
authorized by resolution of the Treasurer
authority or commission and shall bear the date or dates,
mature at the time or times, not exceeding __
30 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in the
denominations, be in the form, either coupon or registered, carry the
registration privileges, be executed in a manner, be payable in
lawful money of the United States of America at a place or places,
and be subject to terms of redemption, as the resolution or
resolutions may provide. The sales may be a public or private sale,
and for the price or prices and on the terms and conditions, as the
Treasurer authority shall determine
after giving due consideration to the recommendations of any
participating party to be assisted from the proceeds of the bonds or
notes. Pending preparation of the definitive bonds, the
Treasurer authority may issue interim receipts,
certificates, or temporary bonds that shall be exchanged for the
definitive bonds. The Treasurer authority
may sell bonds, notes, or other evidence of indebtedness at a
price below their par value. However, the discount on a security sold
pursuant to this section shall not exceed 6 percent of the par
value.
(d) A resolution or resolutions authorizing bonds or an issue of
bonds may contain provisions that shall be a part of the contract
with the holders of the bonds to be authorized, as to all of the
following:
(1) Pledging the moneys collected pursuant to this chapter from
the portfolio of approved applications that are funded by the bonds,
to secure the payment of the bonds or of any particular issue of
bonds, subject to the agreements with bondholders as may then exist.
(2) The setting aside of reserves or sinking funds, and the
regulation and disposition of the reserves or sinking funds.
(3) Limitations on the right of the Treasurer
authority or the commission or their agent to restrict and
regulate the use of the project or projects to be financed out of
the proceeds of the bonds or any particular issue of bonds.
(4) Limitations on the purpose to which the proceeds of sale of an
issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or the
issue of the bonds.
(5) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(6) The procedure, if any, by which the terms of a contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent to the amendment or abrogation, and the
manner in which that consent may be given.
(7) Limitations on expenditures for operating, administrative, or
other expenses of the Treasurer authority
or commission.
(8) Defining the acts or omissions to act that constitute a
default in the duties of the Treasurer
authority or commission to holders of its obligations and
providing the rights and remedies of the holders in the event of a
default.
(e) Neither the Treasurer authority
, the commission, or a person executing the bonds or notes shall be
liable personally on the bonds or notes or be subject to personal
liability or accountability by reason of the issuance of the bond or
note.
(f) The Treasurer authority
shall have power out of any funds available for these purposes to
purchase its bonds or notes. The Treasurer
authority may hold, pledge, cancel, or resell those bonds,
subject to and in accordance with agreements with bondholders.
(g) The commission, the Treasurer
authority , and the board shall may
enter into a memorandum of understanding providing for the
transfer of energy remittance payments between the three agencies in
furtherance of this chapter.
(h) Should there be insufficient project valuation or insufficient
demand for the revenue bonds authorized by this chapter, the board
shall continue to collect the energy remittance payments and service
the loans. Failure to sell the revenue bonds shall not create any
liability for the state.
25987.31. 25987.32. In the
discretion of the Treasurer authority ,
any bonds issued under the provisions of this article may be secured
by a trust agreement by and between the Treasurer
authority and a corporate trustee or trustees, which may
be the Treasurer authority or any trust
company or bank having the powers of a trust company within or
without the state. Such trust agreement or the resolution providing
for the issuance of such bonds may pledge or assign the revenues to
be received pursuant to this chapter, to be financed out of the
proceeds of such bonds. Such trust agreement or resolution providing
for the issuance of such bonds may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders
as may be reasonable and proper and not in violation of law,
including particularly such provisions as have herein above been
specifically authorized to be included in any resolution or
resolutions of the commission authorizing bonds thereof. Any bank or
trust company doing business under the laws of this state which may
act as depositary of the proceeds of bonds or of revenues or other
moneys may furnish such indemnifying bonds or pledge such securities
as may be required by the Treasurer authority
. Any such trust agreement may set forth the rights and
remedies of the bondholders and of the trustee or trustees, and may
restrict the individual right of action by bondholders. In addition
to the foregoing, any such trust agreement or resolution may contain
such other provisions as the Treasurer
authority may deem reasonable and proper for the security of
the bondholders. Notwithstanding any other law, the
Treasurer authority shall not be deemed to have
a conflict of interest by reason of acting as trustee pursuant to
this chapter.
25987.32. 25987.33. Bonds issued
under the provisions of this article shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof, other than the authority, or a pledge of the
faith and credit of the state or of any such political subdivision,
but shall be payable solely from the funds herein provided therefor.
All such bonds shall contain on the face thereof a statement to the
following effect: "Neither the faith and credit nor the taxing power
of the State of California is pledged to the payment of the principal
of or interest on this bond." The issuance of bonds under the
provisions of this article shall not directly or indirectly or
contingently obligate the state or any political subdivision thereof
to levy or to pledge any form of taxation whatever therefor or to
make any appropriation for their payment. Nothing contained in this
section shall prevent or be construed to prevent the
Treasurer authority from pledging its full faith
and credit to the payment of bonds or issue of bonds authorized
pursuant to this chapter.
25987.33. 25987.34. (a) The
Treasurer authority is hereby
authorized to provide for the issuance of bonds of the
Treasurer authority for the purpose of refunding
any bonds, notes, or other securities of the Treasurer
authority then outstanding, including the
payment of any redemption premium thereon and any interest accrued or
to accrue to the earliest or subsequent date of redemption,
purchase, or maturity of such bonds.
(b) The proceeds of any such bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the Treasurer authority ,
be applied to the purchase or retirement at maturity or redemption
of such outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or retirement at the maturity
thereof and may, pending such application, be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on
such date as may be determined by the Treasurer
authority .
(c) Pending such use, any such escrowed proceeds may be invested
and reinvested by the Treasurer authority
in obligations of, or guaranteed by, the United States of
America, or in certificates of deposit or time deposits secured by
obligations of, or guaranteed by, the United States of America,
maturing at such time or times as shall be appropriate to ensure the
prompt payment, as to principal, interest, and redemption premium, if
any, of the outstanding bonds to be so refunded. The interest,
income, and profits, if any, earned or realized on any such
investment may also be applied to the payment of the outstanding
bonds to be so refunded. After the terms of the escrow have been
fully satisfied and carried out, any balance of such proceeds and
interest, income, and profits, if any, earned or realized on the
investments thereof may be returned to the authority for use by it in
any lawful manner.
(d) All such bonds shall be subject to the provisions of this
division in the same manner and to the same extent as other bonds
issued pursuant to this chapter.
25987.34. 25987.35. Bonds issued by
the Treasurer authority are legal
investments for all trust funds, the funds of all insurance
companies, banks, both commercial and savings, trust companies,
savings and loan associations, and investment companies, for
executors, administrators, trustees, and other fiduciaries, for state
school funds, and for any funds which may be invested in county,
municipal, or school district bonds, and such bonds are securities
which may properly and legally be deposited with, and received by,
any state or municipal officer or agency or political subdivision of
the state for any purpose for which the deposit of bonds or
obligations of the state, is now, or may hereafter be, authorized by
law, including deposits to secure public funds if, and only to the
extent that, evidence of indebtedness or debt securities of the
participating party receiving financing through the issuance of such
bonds qualify or are eligible for such purposes and uses.
25987.35. 25987.36. The state hereby
pledges and agrees with the holders of the bonds and with a
participant with an approved application that the state will not
limit, alter, restrict, or impair the rights vested in the
Treasurer authority or the commission or the
rights or obligations of a person or entity with which the commission
contracts to fulfill the terms of an agreement made pursuant to this
chapter. The state further agrees that it will not in any way impair
the rights or remedies of the holder of the bonds until the bonds
have been paid or until adequate provision for payment has been made.
The Treasurer authority may include
this provision and undertaking for the Treasurer
authority in its bonds.
25987.36. No liability shall be incurred by the Treasurer or the
commission beyond the extent to which moneys have been provided under
this chapter; except that for the purposes of meeting the necessary
expenses of initial organization and operation until such date as the
Treasurer derives revenues or proceeds from bonds or notes as
provided under this chapter, the Treasurer may borrow money as needed
for such expenses from the State Energy Resources Conservation and
Development Special Account in the General Fund in the State
Treasury. Such borrowed moneys shall be repaid with interest within a
reasonable time after the Treasurer receives revenues or proceeds
from bonds or notes as provided under this chapter.
25987.37. (a) Bonds issued pursuant to this division shall be
exempt from all taxation and assessment imposed pursuant to state
law.
(b) No later than February 1, 2013, the commission shall apply to
the United States Department of the Treasury under the Energy Tax
Incentive Incentives Act of 2005 (Title
XIII of Public Law 109-58) for the Treasurer
authority to issue tax advantage bonds under the federal Clean
Renewable Energy Bonds program or any other applicable programs.
Article 4. Commercial Nonresidential
Building Energy Retrofit Debt Servicing Fund
25987.38. (a) The Commercial
Nonresidential Building Energy Retrofit Debt Servicing Fund is
hereby established in the State Treasury. Notwithstanding Section
13340 of the Government Code, the moneys in the fund are hereby
continuously appropriated to the Treasurer
authority without regard to fiscal year for the purposes of
paying the principal and interest on bonds issued by the
Treasurer authority pursuant to Section
26987.28 25987.29 , servicing the warehouse
line of credit, and defraying any direct and indirect costs incurred
by the Treasurer in executing duties required by this chapter.
(b) All interest and income derived from the deposit and
investment of moneys in the fund shall be credited to the fund, and
all unexpended and unencumbered moneys in the fund at the end of any
fiscal year shall remain in the fund.
25987.39. The Loan Loss Reserve Account is hereby established in
the Commercial Nonresidential Building
Energy Retrofit Debt Servicing Fund. The board shall deposit the
portion of the contractual energy remittance that is the loan loss
reserve fee into the account. Notwithstanding Section 13340 of the
Government Code, the moneys in the account are hereby continuously
appropriated to the Treasurer authority
without regard to fiscal year for the purposes of paying outstanding
balances due under an energy remittance repayment agreement on a
building that has been foreclosed upon if the proceeds generated from
the foreclosure proceedings are insufficient to pay any past due
payments past due under the energy remittance repayment agreement,
including accrued interest, penalties, and fees. All interest and
income derived from the deposit and investment of moneys in the
account shall be credited to the account, and all unexpended and
unencumbered moneys in the account at the end of any fiscal year
shall remain in the account.
25987.40. The Administration Account is hereby established in the
Commercial Nonresidential Building
Energy Retrofit Debt Servicing Fund. The Treasurer
authority shall deposit into the account the program
administration fee collected pursuant to subdivision (b) of Section
25987.24 25987.23 and penalties
collected pursuant to Section 25987.16. Notwithstanding Section 13340
of the Government Code, moneys in the account shall be continuously
appropriated to the Treasurer authority
, the commission, and the board for the costs of implementing this
chapter.
25987.41. (a) The Director of Finance shall transfer, as a loan,
up to __dollars ($___) one million dollars
($1,000,000) from the General Fund to the board to implement
the collection of the energy remittance repayment
this chapter .
(b) The Director of Finance shall transfer, as a loan, up to seven
million dollars ($7,000,000) from the General Fund to the commission
to implement this chapter.
(b)
(c) Any loan made pursuant to this section
shall be repaid on or before ____ January 1,
2023 , with interest at the pooled money investment rate, from
energy remittance repayment collected pursuant to this chapter.
(d) If the fees authorizes for collection pursuant to subdivision
(b) of Section 25987 are not sufficient to support the loans made
pursuant to this section, the Director of Finance shall discuss
alternative repayment terms with the borrowing agencies.
25987.42. (a) The commission, the board,
and the Treasurer authority shall be
authorized to promulgate necessary regulations to implement and
administer this chapter.
(b) Regulations for the purposes of implementing this chapter
shall be adopted by the commission, board, or authority at a publicly
noticed meeting offering all interested parties an opportunity to
comment. For the initial adoption of the regulations and standards,
the commission shall provide a written public notice at least 30 days
prior to the meeting. For the adoption of any substantive change to
the regulations and standards, the commission shall provide a written
public notice at least 10 days prior to the meeting. Notwithstanding
any other law, a regulation or standard adopted pursuant to this
section shall be exempt from the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.