BILL NUMBER: AB 1383 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 6, 2005
INTRODUCED BY Assembly Member Pavley
FEBRUARY 22, 2005
An act to add and repeal Chapter 5.6 (commencing with Section
25460) of Division 15 of the Public Resources Code, relating to
energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1383, as amended, Pavley. Solar energy: Low-Income Housing
Development Revolving Loan Program.
(1) Existing law establishes various revolving loan programs to
provide loans for specified purposes, including recycling market
development and renewable energy resources.
This bill would establish, until January 1, 2011
2016 , the Low-income Housing Development
Revolving Loan Program to subsidize the financing gap for distributed
solar energy systems , as defined, in low-income housing
units. The bill would create the Low-income Housing Development
Revolving Loan Fund (the fund) for the purpose of providing loans for
program purposes.
The bill would require the State Energy Resources Conservation and
Development Commission to take various actions to
administer establish the program, including
entering into a memorandum of agreement with a state agency to
administer the program upon the appropriation of money in the
fund for that purpose in the annual Budget Act.
(2) The bill would provide that its provisions shall only be
implemented if funding for its purposes is made available in the
annual Budget Act.
(2) The bill would require the
California Public Utilities Commission (PUC), in consultation with
the commission, on or before July 1, 2006, to issue an order
initiating an investigation and opening a ratemaking proceeding, or
expanding the scope of an existing proceeding, to adopt and implement
a program to invest in low‑income residential
housing solar energy systems pursuant to the program, as provided.
The bill would require the commission to identify funds that are
currently available in the Renewable Resource Trust Funds for the
program if funds are not made available through the PUC ratemaking
proceeding.
The bill would require the commission to ensure that the
proportional program support for the installation of solar energy
systems on new construction and rehabilitation of affordable housing
units does not exceed a certain percentage of the overall program
funds, as specified.
Vote: majority. 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 all of the
following:
(a) California has a pressing need to procure a steady supply of
affordable and reliable peak electricity for affordable housing
units.
(b) Solar generated electricity is uniquely suited to California's
needs because it produces electricity when California needs it most,
during the peak demand hours in summer afternoons when the sun is
brightest and air conditioners are running at capacity.
(c) Procuring solar electric generation capacity to meet peak
electricity demand increases system reliability and decreases
California's dependence on unstable fossil fuel supplies.
(d) Solar generated electricity diversifies California's energy
portfolio. California currently relies on natural gas for the bulk of
its electricity generation needs. Increasing energy demands place
increasing pressure on limited natural gas supplies and threaten to
raise costs.
(e) More than 20,000 affordable housing units will be built
annually in California in the coming years, challenging energy
reliability and affordability for those residents who can least
afford inflated energy bills.
(f) Investing in low-income housing solar electricity generation
installations today will lower the cost of solar generated
electricity for all Californians in the future. In 10 years, solar
peak electric generation can be procured without the need for
rebates.
(g) Increasing California's solar electricity generation market
will also bring additional manufacturing, installation, and sales
jobs to the state at a higher rate than most conventional energy
production sources.
(h) Funding the Low-Income Housing Development Revolving Loan
Program established pursuant to Chapter 5.6 (commencing with Section
25460) of Division 15 of the Public Resources Code (hereafter the
loan program) is a cost-effective investment by ratepayers in peak
electricity generation capacity, because as a result of the program
ratepayers will recoup the cost of their investment through lower
rates by avoiding purchases of electricity at peak rates, with
additional system reliability and pollution reduction benefits.
(i) The Public Utilities Commission has regulatory authority over
public utilities, including electrical corporations, and existing law
authorizes the commission to establish rules for all public
utilities, subject to control by the Legislature. In addition, the
commission can require an electric or gas corporation to perform home
weatherization services, as defined, for low-income customers, as
determined by the commission.
(j) The loan program would further establish, increase, and modify
incentives and provide financing mechanisms for energy efficiency
and photovoltaic capabilities for subsidized and affordable housing,
and establish "zero energy homes" as a goal for low-income and
affordable housing residents.
(k) Solar energy systems provide substantial energy reliability
and pollution reduction benefits. Solar energy systems also diversify
our energy supply and thereby reduce our dependence on imported
fossil fuels.
SECTION 1.
SEC. 2. Chapter 5.6 (commencing with Section 25460) is
added to Division 15 of the Public Resources Code, to read:
CHAPTER 5.6. LOW-INCOME HOUSING DEVELOPMENT REVOLVING LOAN
PROGRAM
25460. As used in this chapter, the following terms have the
following meanings:
(a) "Agency" means the state agency with which the commission
enters into a memorandum of understanding to administer the program.
(b) "Fund" means the Low-income Housing Development Revolving Loan
Fund created by Section 25462.
(c) "Program" means the Low-income Housing Development Revolving
Loan Program.
25461. The Low-Income Housing Development Revolving Loan Program
is hereby established to subsidize the financing gap for distributed
solar energy systems in low-income housing units.
25462. (a) The Low-income Housing Development Revolving Loan
Program Fund is hereby created in the State Treasury for the purpose
of providing loans for purposes of the program.
(b) The agency may expend interest earnings on money in the fund
for administrative expenses incurred in carrying out the program,
upon the appropriation of money in the fund for that purpose in the
annual Budget Act.
(c) The money from any loan repayments and fees, including, but
not limited to, principal and interest repayments, fees and points,
recovery of collection costs, income earned on any asset recovered
pursuant to a loan default, and money collected through foreclosure
actions, shall be deposited in the fund.
(d) All interest accruing on interest payments from loan
applicants shall be deposited in the fund.
(e) The agency may expend the money in the fund to make loans to
local governing bodies, private businesses, and nonprofit entities to
subsidize the financing gap for distributed solar energy systems in
low-income housing units.
(f) The agency shall establish and collect fees for applications
for loans authorized by this section. The application fee shall be
set at a level that is sufficient to fund the agency's cost of
processing applications for loans. In addition, the agency shall
establish a schedule of fees, or points, for loans which are entered
into by the agency, to fund the agency's administration of the
program.
(g) The agency may expend money in the fund for the administration
of the program, upon the appropriation of money in the fund for that
purpose in the annual Budget Act.
(h) The agency may set aside money for the purposes of paying
costs necessary to protect the state's position as a lender-creditor.
These costs shall be broadly construed to include, but not be
limited to, foreclosure expenses, auction fees, title searches,
appraisals, real estate brokerage fees, attorney fees, mortgage
payments, insurance payments, utility costs, repair costs, removal
and storage costs for repossessed equipment and inventory, and
additional expenditures to purchase a senior lien in foreclosure or
bankruptcy proceedings.
25463. This chapter shall remain in effect only until January
1, 2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
SEC. 2. This act shall only be implemented if funding
for its purposes is made available in the annual Budget Act.
(c) "Low‑income residential housing" means affordable
residential housing units that are defined in Section 50052.5 or
50053 of, or are undertaken, constructed, or operated pursuant to
Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division
31 of, the Health and Safety Code.
(d) "Program" means the Low‑Income Housing Development
Revolving Loan Program created by Section 25461.
(e) "Solar energy system" means a photovoltaic solar collector or
other photovoltaic solar energy device that has a primary purpose of
providing for the collection and distribution of solar energy for the
generation of electricity, and that produces at least 1 kW
alternating current rated peak electricity.
25461. The Low‑Income Housing Development Revolving Loan
Program is hereby established. The purpose of the program is to
provide a source of financing not to exceed 75 percent of the total
system cost, for solar energy systems in low‑income residential
housing units.
25462. (a) The Low-income Housing Development Revolving Loan
Program Fund is hereby created in the State Treasury for the purpose
of providing loans for purposes of the program.
(b) The agency may expend the money in the fund to make loans to
local governing bodies, private businesses, and nonprofit entities to
provide funding for solar energy systems in low-income housing
units.
(c) The agency shall administer below market rate loans at a rate
determined annually by the agency.
25463. (a) The agency shall establish and collect a fee for each
application for a loan authorized by this section. The application
fee shall be set at a level that is sufficient to fund the agency's
cost of processing applications for loans. In addition, the agency
shall establish a schedule of fees, or points, for loans that are
entered into by the agency, to fund the agency's administration of
the program.
(b) The agency may expend money in the fund, including interest
earnings on money in the fund, for the administration of the program,
upon the appropriation of money in the fund for that purpose in the
annual Budget Act.
(c) The money from any loan repayments and fees, including, but
not limited to, principal and interest repayments, fees and points,
recovery of collection costs, income earned on any asset recovered
pursuant to a loan default, and money collected through foreclosure
actions, shall be deposited in the fund.
(d) All interest accruing on interest payments from loan
applicants shall be deposited in the fund.
(e) The agency may set aside money in the fund for the purposes of
paying costs necessary to protect the state's position as a
lender-creditor. These costs shall be broadly construed to include,
but not be limited to, foreclosure expenses, auction fees, title
searches, appraisals, real estate brokerage fees, attorney fees,
mortgage payments, insurance payments, utility costs, repair costs,
removal and storage costs for repossessed equipment and inventory,
and additional expenditures to purchase a senior lien in foreclosure
or bankruptcy proceedings.
25464. To be eligible for participation in the program, a housing
project must be at least 10 percent or more energy efficient than
required by the current standards specified in the California
Building Standards Code contained in Title 24 of the California Code
of Regulations, or have implemented measures to reduce the energy use
of the building or unit by 10 percent, as calculated pursuant to
Title 24 compliance models. An eligible housing project that exceeds
energy efficiency standards required by Title 24 by more than 10
percent shall receive financing at rate of .25 percent lower for
every 5 percent additional improvement in energy efficiency.
25465. The commission may consult with the California Tax Credit
Allocation Committee (TCAC), the California Housing Finance Agency
and the Department of Housing and Community Development to develop
guidelines for the loan program.
25466. This chapter shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 3. (a) Notwithstanding any other
law, on or before July 1, 2006, the California Public Utilities
Commission (PUC), in consultation with the State Energy Resources
Conservation and Development Commission, shall issue an order
initiating an investigation and opening a ratemaking proceeding, or
expanding the scope of an existing proceeding, for the purpose of
adopting and implementing a program to invest in low‑income
residential housing solar energy systems pursuant to Chapter 5.6
(commencing with Section 25460) of Division 15 of the Public
Resources Code.
(b) In the course of that proceeding, the PUC and the State Energy
Resources Conservation and Development Commission shall also
consider and evaluate whether existing solar energy programs are
adequately funded to achieve the goal of placing solar energy systems
on low‑income or affordable residential housing units by
December 31, 2018.
(c) If funds are not available through a PUC ratemaking
proceeding, the State Energy Resources Conservation and Development
Commission shall identify funds either from those currently available
in the Renewable Resource Trust Fund established by Section 25751 of
the Public Resources Code or in the next available reauthorization
of the fund.
(d) The commission shall ensure proportional program support, not
to exceed 10 percent of the overall program funds, for the
installation of solar energy systems on the new construction and
rehabilitation of affordable housing units, including single and
multifamily residential housing. In addition to the rebate, the
commission shall also ensure that additional and proportional
resources, not to exceed 5 percent of the overall program funds, are
provided for the unique needs of the subsidized low‑income
housing through a targeted financing mechanism and support, including
a revolving loan fund, technical assistance, and other needs as
identified in consultation with the California Tax Credit Allocation
Committee.