BILL NUMBER: AB 1383 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 2, 2005
AMENDED IN ASSEMBLY APRIL 18, 2005
AMENDED IN ASSEMBLY APRIL 6, 2005
INTRODUCED BY Assembly Member Pavley
(Coauthors: Assembly Members Hancock, Jerome Horton,
Levine, Mullin, Salinas, and Torrico)
FEBRUARY 22, 2005
An act to add and repeal Chapter 5.6 (commencing with Section
25460) of Division 15 of the Public Resources Code, and to add
and repeal Section 379.9 of the Public Utilities 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. Existing law
requires the State Energy Resources Conservation and Development
Commission (Energy Commission) to transfer funds collected for
in-state operation and development of existing and new and emerging
renewable resources technologies into the Renewable Resource Trust
Fund.
This bill would establish, until January 1, 2016, the
Low-income 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 Low-Income
Housing Development Revolving Loan Fund ( the
revolving loan 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 establish the program upon the
appropriation of money in the fund for that purpose in the annual
Budget Act.
(2) The Under existing law, the Public
Utilities Commission (PUC) has regulatory authority over public
utilities, including electrical corporations.
This bill would require the California Public
Utilities Commission (PUC) PUC , in consultation
with the commission Energy 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 established by the bill , as
provided.
The bill would require the commission
Energy Commission to identify funds that are currently
available in the current fiscal year in the
Renewable Resource Trust Funds Fund or in the
next fiscal year, for transfer to the revolving loan fund for
the program , if funds are not made available through the
PUC ratemaking proceeding and if the Energy Commission makes
specified determinations regarding those funds .
The bill would require the commission, if funds are available for
this purpose under provisions of this bill, 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.
The bill would require the funds generated as a result of the
ratemaking proceeding or so identified by the Energy Commission to be
transferred to the revolving loan fund.
The bill would repeal these provisions on January 1, 2016.
(3) Existing law makes a violation of the Public Utilities Act or
a violation of an order of the PUC a crime.
Because a provision of this bill would be part of the act and an
order of the PUC would be required to implement that provision, and a
violation of the provision of the bill that is part of the act or of
any PUC order implementing that provision would be a crime, this
bill would impose a state-mandated local program by creating new
crimes.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
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) Roughly 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.
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) "Fund" means the Low-income Low-Income
Housing Development Revolving Loan Fund created by Section
25462.
(b) "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.
(c) "Program" means the Low-Income Housing Development Revolving
Loan Program created by Section 25461.
(d) "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
(d) "Solar energy system" means a solar
energy device that has the 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 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 commission shall administer the fund.
(c) The commission shall 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 fund.
(d) The commission 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.
(e) The commission shall administer below market rate loans at a
rate determined annually by the agency.
25463. (a) The commission 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 commission'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 commission, to fund the
commission's administration of the program.
(b) The commission 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 commission 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.
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) If funds are made available for this purpose under
subdivision (a) or (c), the State Energy Resources and Conservation
and Development 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. 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 program through a targeted
financing mechanism, including a revolving loan fund, as identified
in consultation with the California Tax Credit Allocation Committee.
SEC. 3. Section 379.9 is added to the
Public Utilities Code , to read:
379.9.
(a) Notwithstanding any other law, on or before July 1, 2006, the
commission, 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 the proceeding specified in subdivision (a),
the commission 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 commission ratemaking
proceeding, the State Energy Resources Conservation and Development
Commission shall identify funds that are either available in the
current fiscal year in the Renewable Resource Trust Fund established
by Section 25751 of the Public Resources Code, or in the next fiscal
year, for transfer to the Low-Income Housing Development Revolving
Loan Program Fund created pursuant to Section 25462 of the Public
Resources Code, if the State Energy Resources Conservation and
Development Commission does both of the following:
(1) Conducts a cost benefit analysis of programs authorized to be
funded through the Renewable Resource Trust Fund and determines that
money used to fund any of those programs could more effectively
achieve the goal of developing more renewable electricity if the
money is transferred to the Low-Income Housing Development Revolving
Loan Program created in Chapter 5.6 (commencing with Section 25460)
of Division 15 of the Public Resources Code.
(2) Determines that a transfer of funds from the Renewable
Resource Trust Fund to the Low-Income Housing Development Revolving
Loan Program Fund will not result in insufficient funds to cover the
above market costs of eligible renewable resources, as required in
paragraph (1) of subdivision (b) of Section 25743 of the Public
Resources Code.
(d) The State Energy Resources Conservation and Development
Commission shall transfer the funds generated pursuant to a
proceeding specified in subdivision (a), or, after making the
determinations specified in subdivision (c), shall transfer the funds
identified pursuant to subdivision (c), to the Low-Income Housing
Development Revolving Loan Program Fund created by Section 25462 of
the Public Resources Code.
(e) This section 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. 4.
No reimbursement is required by this act pursuant to Section 6 of
Article XIII B of the California Constitution because the only costs
that may be incurred by a local agency or school district will be
incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.