BILL NUMBER: AB 1138	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 10, 2002
	AMENDED IN ASSEMBLY  MAY 3, 2001
	AMENDED IN ASSEMBLY  APRIL 19, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001
	AMENDED IN ASSEMBLY  MARCH 27, 2001

INTRODUCED BY   Assembly Member  La Suer  
Pescetti 

                        FEBRUARY 23, 2001

    An act to add and repeal Section 63025.3 of the
Government Code, relating to infrastructure development. 
 An act to add Sections 57050.5 and 57132.5 to the Government
Code, relating to incorporation, and declaring the urgency thereof,
to take effect immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1138, as amended,  La Suer   Pescetti
 .   Infrastructure development: low-interest loans
  Incorporation  . 
   Existing law concerning the incorporation of cities specifies that
a protest hearing on the proposal may be continued from time to time
not to exceed 60 days from the date specified for the hearing in the
notice. Existing law requires that the election on the question of
an incorporation shall be called and held on the next regular
election date occurring at least 88 days after the date upon which
the resolution calling the election was adopted by the conducting
authority.
   This bill would revise those time periods as specified with
respect to the proposed incorporation of Rancho Cordova in Sacramento
County.
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   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 until January 1, 2007, 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 peak demand electrical powerplant facilities or for the
planning, design, construction, and startup of peak demand powerplant
facilities of up to 150 megawatts, subject to specified conditions.
The bill would declare the intent of the Legislature to provide
incentives to repower existing powerplant facilities for peak demand
periods and provide for construction and startup of new peak demand
powerplant facilities in California. 
   Vote:   majority   2/3  .
Appropriation:  no.  Fiscal committee:   yes  
no  .  State-mandated local program:  no.


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

  
  SECTION 1.  The Legislature finds and declares all of the 

  SECTION 1.  Section 57050.5 is added to the Government Code, to
read:
   57050.5.  Notwithstanding subdivision (a) of Section 57050, for
the purposes of a proposed incorporation of the community of Rancho
Cordova in Sacramento County, the protest hearing on the proposal may
be continued from time to time but not after August 19, 2002.
  SEC. 2.  Section 57132.5 is added to the Government Code, to read:

   57132.5.  Notwithstanding Section 57132, for the purposes of a
proposed incorporation of the community of Rancho Cordova in
Sacramento County, the election on the question of the incorporation
shall be called and held on the next regular election date occurring
at least 78 days after the date upon which the resolution calling the
election was adopted.
  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 for the incorporation proceedings for the proposed City
of Rancho Cordova to be completed in a timely manner that will permit
the electors to vote on the question of incorporation at the
November 5, 2002, general election, it is necessary that this act go
into effect immediately.    following:
   (a) Beginning in the summer of 2000 and continuing to the present,
the State of California has experienced unprecedented energy
shortages, which have contributed to enormous increases in the prices
paid for electricity in California's wholesale power market and by
all ratepayers.
   (b) These sudden and severe energy shortages threaten the health
and safety of all California citizens, weaken the vital nature of the
high-technology economy which is exclusive to this state, reduce the
productivity of the state's farming and small business communities,
and disrupt the education of the children of the state.
   (c) Because it is likely that serious shortages of electricity
will continue until sufficient additional generation capacity is
installed and operational, which could require several years, it is
the intent of the Legislature in enacting this act to facilitate the
long-term well-being of the citizens of this state by providing an
incentive for businesses to invest in electrical generation by making
private projects eligible for financing from the California
Infrastructure and Economic Development Bank.
   (d) It is further the intent of the Legislature in enacting this
act to provide an incentive for the purposes of repowering existing
electrical powerplant facilities for peak demand periods and to plan
and design construction and startup of peak demand powerplant
facilities so they may expand their business and simultaneously
assist in producing and supplying electricity to the consumers of
this state.
  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 either of the following:
   (1) Costs associated with the repowering of any existing
powerplant facilities generating electrical power during peak demand
periods.
   (2) Costs associated with the planning, design, construction, and
startup of powerplant facilities for the generation of electrical
power of up to 150 megawatts that are intended to operate only during
peak demand periods.
   (b) Loans made pursuant to this section shall be subject to the
following conditions:
   (1) The participating party is sponsored by a public entity.
   (2) The sponsor or participating party shall agree to give the
Department of Water Resources, California electrical corporations,
municipal corporations, irrigation districts, or other public
electric utility districts a right of first refusal to purchase any
electricity produced by the powerplant facility for which the loan is
made.
   (3) The powerplant facility for which the loan is made is not or
shall not be diesel or nuclear operated.
   (4) The electrical power generated by the powerplant facility for
which the loan is made shall be used exclusively within the state.
   (5) The loan amount shall not exceed 75 percent of the total cost
of the project.
   (c) For purposes of this section, "powerplant facility" means an
electric transmission line, thermal powerplant, wind generating
facility, hydroelectric electrical generating facility, or solar
electrical generating facility.
   (d) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.