BILL NUMBER: ABX2 61 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Kehoe
MAY 30, 2001
An act to amend Section 15356 of the Government Code, and to amend
Sections 25433.5, 25434.5, 26003, and 26011.6 of the Public
Resources Code, relating to energy resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 61, as introduced, Kehoe. Energy.
Chapter 8 of the Statutes of 2001 contains erroneous
cross-references.
This bill would correct the erroneous cross-references.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15356 of the Government Code is amended to
read:
15356. (a) The agency shall determine the percentage of the
reserve in the Renewable Energy Loan Loss Reserve Fund required to
secure loan guarantees made by the committee. However, in no event
shall the reserve be less than 25 percent of the fund.
(b) The minimum amount that the agency may guarantee for any
renewable energy system is twenty-five thousand dollars ($25,000) and
the maximum amount is two million dollars ($2,000,000). The agency
may elect to lower or raise the minimum or maximum amount if a change
is found to be in the best interest of the state.
(c) The term of the guaranteed loan shall not exceed the useful
life of the renewable energy system or 15 years, whichever is
shorter.
(d) The amount guaranteed shall not exceed 90 percent of a loan,
or an amount equal to the anticipated proportion of renewable fuel
usage to fuel the renewable energy system, as authorized by
paragraph (2) of subdivision (d)
(e) of Section 15351, whichever is less.
SEC. 2. Section 25433.5 of the Public Resources Code is amended to
read:
25433.5. (a) In consultation with the Public Utilities
Commission, the commission shall do both of the following for the
purpose of full or partial funding of an eligible construction or
retrofit project:
(1) Establish a grant program to provide financial assistance to
eligible low-income individuals.
(2) Establish a 2-percent interest per annum loan program to
provide financial assistance to a small business owner, residential
property owner, or individual who is not eligible for a grant
pursuant to paragraph (1). The loans shall be available to a small
business owner who has a gross annual income that does not exceed one
hundred thousand dollars ($100,000) or to an individual or
residential property owner who has a gross annual household income
that does not exceed one hundred thousand dollars ($100,000).
(b) (1) The commission shall use the design guidelines adopted
pursuant to clause (ii) of subparagraph (D) of paragraph (3)
of subdivision (d) paragraph (2) of subdivision (f)
of Section 14 of the act that added this section as standards
to determine eligible energy-efficiency projects.
(2) The award of a grant pursuant to this section is subject to
appeal to the commission upon a showing that the commission applied
factors, other than those adopted by the commission, in making the
award.
(3) The grant or loan recipient shall commit to using the grant or
loan for the purpose for which the grant or loan was awarded.
(4) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including satisfying
conditions specified by the commission, does not constitute the
rendering of goods, services, or a direct benefit to the commission.
(5) The amount of any grant awarded pursuant to this article to a
low-income individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received.
SEC. 3. Section 25434.5 of the Public Resources Code is amended to
read:
25434.5. As used in this article, the following terms have the
following meanings:
(a) "Eligible construction or retrofit project" means a project
for making improvements to a home or building in existence on the
effective date of the act adding this section, through an addition,
alteration, or repair, which effectively increases the energy
efficiency or reduces the energy consumption of the home or building
as specified by the commission's guidelines under clause
(ii) of subparagraph (D) of paragraph (3) of subdivision (d)
paragraph (2) of subdivision (f) of Section 14
of the act that added this section. The improvements shall be deemed
to be cost-effective.
(b) "Low income" means an individual with a gross annual income
equal to or less than 200 percent of the federal poverty level.
(c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
SEC. 4. Section 26003 of the Public Resources Code is amended to
read:
26003. As used in this division, unless the context otherwise
requires:
(a) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
(b) "Cost" as applied to a project or portion thereof financed
under this division means all or any part of the cost of construction
and acquisition of all lands, structures, real or personal property
or an interest therein, rights, rights-of-way, franchises, easements,
and interests acquired or used for a project; the cost of
demolishing or removing any buildings or structures on land so
acquired, including the cost of acquiring any lands to which those
buildings or structures may be moved; the cost of all machinery,
equipment, and furnishings, financing charges, interest prior to,
during, and for a period after, completion of construction as
determined by the authority; provisions for working capital; reserves
for principal and interest and for extensions, enlargements,
additions, replacements, renovations, and improvements; the cost of
architectural, engineering, financial, accounting, auditing and legal
services, plans, specifications, estimates, administrative expenses,
and other expenses necessary or incident to determining the
feasibility of constructing any project or incident to the
construction, acquisition, or financing of any project.
(c) (1) "Alternative sources" means the application of
cogeneration technology, as defined in Section 25134; the
conservation of energy; or the use of solar, biomass, wind,
geothermal, hydroelectricity under 30 megawatts and meeting the
criteria set forth in subdivision (b) of Section 15352
Section 15357 of the Government Code, or any
other source of energy, the efficient use of which will reduce the
use of fossil and nuclear fuels.
(2) "Alternative sources" does not include any hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
(d) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution reduction, and
transportation efficiency. Those technologies may include, but are
not limited to, any of the following:
(1) Intelligent vehicle highway systems.
(2) Advanced telecommunications for transportation.
(3) Command, control, and communications for public transit
vehicles and systems.
(4) Electric vehicles and ultra-low emission vehicles.
(5) High-speed rail and magnetic levitation passenger systems.
(6) Fuel cells.
(e) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
(1) Loans, loan loss reserves, interest rate reductions, proceeds
of bonds issued by the authority, 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 the resolution of, the board.
(2) Any other type of assistance the authority determines is
appropriate.
(f) "Participating party" means either of the following:
(1) Any person or any entity or group of entities engaged in
business or operations in the state, whether organized for profit or
not for profit, that applies for financial assistance from the
authority for the purpose of implementing a project in a manner
prescribed by the authority.
(2) Any public agency or nonprofit corporation that applies for
financial assistance from the authority for the purpose of
implementing a project in a manner prescribed by the authority.
(g) "Project" means any land, building, improvement thereto,
rehabilitation, work, property, or structure, real or personal,
stationary or mobile, including, but not limited to, machinery and
equipment, whether or not in existence or under construction, that
utilizes, or is designed to utilize, an alternative source, or that
is utilized for the design, technology transfer, manufacture,
production, assembly, distribution, or service of advanced
transportation technologies.
(h) "Public agency" means any federal or state agency, board, or
commission, or any county, city and county, city, regional agency,
public district, or other political subdivision.
(i) (1) "Renewable energy" means any device or technology that
conserves or produces heat, processes heat, space heating, water
heating, steam, space cooling, refrigeration, mechanical energy,
electricity, or energy in any form convertible to these uses, that
does not expend or use conventional energy fuels, and that uses any
of the following electrical generation technologies:
(A) Biomass.
(B) Solar thermal.
(C) Photovoltaic.
(D) Wind.
(E) Geothermal.
(2) For purposes of this subdivision, "conventional energy fuel"
means any fuel derived from petroleum deposits, including, but not
limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas, or nuclear fissionable materials.
(3) Notwithstanding paragraph (1), for purposes of this section,
"renewable energy" also means ultralow emission equipment for energy
generation based on thermal energy systems such as natural gas
turbines and fuel cells.
(j) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from the sale, lease, or other disposition of alternative source or
advanced transportation technology facilities, or the making of loans
to finance alternative source or advanced transportation technology
facilities, and any income or revenue derived from the investment of
any money in any fund or account of the authority.
SEC. 5. Section 26011.6 of the Public Resources Code is amended to
read:
26011.6. (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply.
(b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Sections
Section 26011.5 and 26011.7 as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.
For purposes of that Chapter 3.5, including Section 11349.6 of the
Government Code, the adoption of the regulations shall be considered
by the Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
(c) The authority shall consult with the State Energy Resources
Conservation and Development Commission regarding the financing of
projects to avoid duplication of other renewable energy projects.
(d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.