BILL NUMBER: AB 1138	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 27, 2001

INTRODUCED BY   Assembly Member La Suer

                        FEBRUARY 23, 2001

   An act to add Section 63025.3 to the Government Code, relating to
infrastructure development, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1138, as amended, La Suer.  Infrastructure development:
low-interest loans.
   The existing Bergeson-Peace Infrastructure and Economic
Development Bank Act establishes the California Infrastructure and
Economic Development Bank within state government with a board of
directors having prescribed duties.  Existing law authorizes the bank
board to make secured loans and undertake related activities for the
purpose of financing projects, as defined, that relate to economic
development and infrastructure improvements, including, but not
limited to, utilities and power facilities.
   This bill would authorize the bank board to make a low-interest
loan to a sponsor or a participating party, as defined, for costs
associated with the repowering, as defined, of existing electrical
facilities or for the planning, design, construction, and startup of
peak demand facilities of up to 150 megawatts  , subject to
specified conditions  .  The bill would declare the intent of
the Legislature to provide incentives to build new power plants in
California  and would require, as a condition of the
low-interest loan, that the power generator give California utilities
a right of first refusal to purchase any electricity produced by the
facility  .
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  The Legislature finds and declares that in order to
encourage increased power generation in California, it would be
useful to provide incentives to build new powerplants in California.

  SEC. 2.  Section 63025.3 is added to the Government Code to read:
   63025.3.  (a) In addition to other powers set forth in this
division, the bank board may make a low-interest loan to a sponsor or
a participating party for  any   either 
of the following:
   (1) Costs associated with the repowering of any existing
facilities for the generation of electrical power.
   (2) Costs associated with the planning, design, construction, and
startup of facilities for the generation of electrical power of up to
150 megawatts that are intended to operate only during peak demand
periods.  
   (b) As a condition of receiving a low-interest loan, the sponsor
 
   (b) Loans made pursuant to this section shall be subject to the
following conditions:
   (1) The sponsor  or participating party shall agree to give
California utilities a right of first refusal to purchase any
electricity produced by the facility for which the loan is made.

   (2) The participating party shall have an existing contract with
the Independent System Operator or the Department of Water Resources.

   (3) The electrical power generated by the facility for which the
loan is made shall be used exclusively within the state.
   (4) The loan amount shall not exceed 75 percent of the total cost
of the project. 
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to provide timely relief from rapidly increasing
wholesale energy costs and retail energy rates that are endangering
the public peace, health, and safety, it is necessary that this act
take effect immediately.