BILL NUMBER: AB 796 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 26, 2012
AMENDED IN SENATE JUNE 12, 2012
AMENDED IN SENATE FEBRUARY 27, 2012
AMENDED IN SENATE SEPTEMBER 2, 2011
AMENDED IN SENATE JULY 13, 2011
AMENDED IN ASSEMBLY MAY 11, 2011
AMENDED IN ASSEMBLY APRIL 25, 2011
INTRODUCED BY Assembly Member Blumenfield
(Coauthor: Assembly Member Wieckowski)
(Coauthor: Senator Pavley)
FEBRUARY 17, 2011
An act to amend Section 44559.3 of the Health and Safety
Code, and to add and repeal Chapter 5 (commencing with
Section 26090) of Division 16.1 (commencing with
Section 26050) 16 of the Public Resources Code,
relating to financial assistance.
LEGISLATIVE COUNSEL'S DIGEST
AB 796, as amended, Blumenfield. Financial assistance:
Capital Access Loan Program: Clean Energy Economy and Jobs
Incentive Program.
Existing law establishes the Capital Access Loan Program for small
businesses, administered by the California Pollution Control
Financing Authority (authority), which provides loans through
participating financial institutions to qualifying small businesses.
Existing law requires the authority to create a loss reserve account
for each financial institution in order to provide protection against
loss. The loss reserve account for a financial institution consists
of moneys paid as fees by borrowers and the financial institution,
moneys transferred to the account from a small business assistance
fund, matching federal moneys, and other moneys provided by the
authority or other sources. Existing law requires the combined amount
to be deposited by the participating financial institution into any
individual loss reserve account over a 3-year period, in connection
with any single borrower or any group of borrowers among which a
common enterprise exists, to be not more than $100,000.
This bill would increase this maximum contribution by the
financial institution to $200,000, if the matching contribution made
by the authority is funded exclusively from funds made available
pursuant to the federal Small Business Jobs Act of 2010. The bill
would limit the amount of those funds used for matching contributions
for deposits exceeding $100,000 to not more than 50% of the
available funds.
Existing law establishes the California Alternative Energy and
Advanced Transportation Financing Authority and requires the
authority to provide financial assistance in the form of a sale and
use tax exclusion for applicants to promote the creation of
California-based manufacturing, California-based jobs, the reduction
of greenhouse gases, or reductions in air and water pollution or
energy consumption.
This bill would require the authority to establish the Clean
Energy Economy and Jobs Incentive Program to provide financial
assistance in the form of specified financing mechanisms for an
applicant to promote the commercialization and manufacturing of a
project in eligible clean energy technology areas. The bill would
establish the Clean Energy Economy and Jobs Incentive Program Fund in
the State Treasury and would, upon appropriation by the Legislature,
authorize the authority to expend moneys in the fund to implement
the program. The bill would repeal the program on January 1, 2018.
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. Section 44559.3 of the Health and
Safety Code is amended to read:
44559.3. (a) The authority shall establish a loss reserve account
for each financial institution with which the authority makes a
contract.
(b) The loss reserve account for a financial institution shall
consist of moneys paid as fees by borrowers and the financial
institution, moneys transferred to the account from a small business
assistance fund, any matching federal moneys, and any other moneys
provided by the authority or other source.
(c) Notwithstanding any other law, the authority may establish and
maintain loss reserve accounts with a financial institution under
any policies the authority may adopt.
(d) All moneys in a loss reserve account established pursuant to
this article are the exclusive property of, and solely controlled by,
the authority. Interest or income earned on moneys credited to the
loss reserve account shall be deemed to be part of the loss reserve
account. The authority may withdraw from the loss reserve account
all, or a portion of, the interest or other income that has been
credited to the loss reserve account. Any withdrawal made pursuant to
this subdivision may be made prior to paying any claim and shall be
used for the sole purpose of offsetting costs associated with
carrying out the program, including administrative costs and loss
reserve account contributions.
(e) (1) Except as provided in paragraph (2), the combined amount
to be deposited by the participating financial institution into an
individual loss reserve account over a three-year period, in
connection with a single borrower or a group of borrowers among which
a common enterprise exists, shall be not more than one hundred
thousand dollars ($100,000).
(2) (A) The combined amount to be deposited by the participating
financial institution into an individual loss reserve account over a
three-year period, in connection with any single borrower or any
group of borrowers among which a common enterprise exists, shall be
not more than two hundred thousand dollars ($200,000), if the
matching contribution made by the authority is funded exclusively
from funds made available pursuant to the federal Small Business Jobs
Act of 2010 (Public Law 111-240).
(B) The authority shall not use more than 50 percent of the total
funds made available for matching contribution purposes of
subparagraph (A) pursuant to the federal Small Business Jobs Act of
2010 (Public Law 111-240) for deposits exceeding one hundred thousand
dollars ($100,000).
SEC. 2. Division 16.1 (commencing with Section
26050) is added to the Public Resources Code, to read:
DIVISION 16.1. CLEAN ENERGY ECONOMY AND JOBS INCENTIVE PROGRAM
26050. As used in this division, the following terms mean the
following:
(a) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004.
SECTION 1. Chapter 5 (commencing with Section 26090) is
added to Division 16 of the Public Resources Code, to read:
CHAPTER 5. CLEAN ENERGY ECONOMY AND JOBS INCENTIVE
PROGRAM
26090. As used in this division, the following
terms mean the following:
(b)
(a) "Biogas" means digester gas, landfill gas, and any
gas derived from an eligible biomass feedstock.
(c) "Biomass" means an organic material not derived from fossil
fuels, including, but not limited to, agricultural crops,
agricultural wastes and residues, waste pallets, crates, dunnage,
manufacturing and construction wood wastes, landscape and
right-of-way tree trimmings, mill residues that result from milling
lumber, rangeland maintenance residues, biosolids, sludge derived
from organic matter, and wood and wood waste from timbering
operations.
(1) Agricultural wastes and residues include, but are not limited
to, animal wastes, remains, and tallow, food wastes, recycled cooking
oils, and pure cooking oils.
(2) Landscape or right-of-way tree trimmings include all solid
waste materials that result from tree or vegetation trimming or
removal to establish or maintain right-of-way on public or private
land for the following purposes:
(A) Provision of public utilities, including, but not limited to,
natural gas, water, electricity, and telecommunications.
(B) Fuel hazard reduction resulting in fire protection and
prevention.
(C) Recreational use.
(d)
(b) "California-based entity" means a corporation or
other business form organized for the transaction of business in
California that has an office in California, and manufactures or
plans to manufacture in California, a product in an eligible
technology that qualifies for financial assistance as determined by
the authority.
(c) "Eligible biomass feedstock" means an organic material not
derived from fossil fuels, including, but not limited to,
agricultural crops, agricultural wastes and residues, waste pallets,
crates, dunnage, manufacturing and construction wood wastes,
landscape and right-of-way tree trimmings, mill residues that result
from milling lumber, rangeland maintenance residues, biosolids,
sludge derived from organic matter, and wood and wood waste from
timbering operations.
(1) Agricultural wastes and residues include, but are not limited
to, animal wastes, remains, and tallow, food wastes, recycled cooking
oils, and pure cooking oils.
(2) Landscape or right-of-way tree trimmings include all solid
waste materials that result from tree or vegetation trimming or
removal to establish or maintain right-of-way on public or private
land for the following purposes:
(A) Provision of public utilities, including, but not limited to,
natural gas, water, electricity, and telecommunications.
(B) Fuel hazard reduction resulting in fire protection and
prevention.
(C) Recreational use.
(e)
(d) "Eligible clean energy technology" means a
technology in any of the following areas:
(1) A technology that conserves, produces, or processes heat,
space heating, water heating, steam, space cooling, refrigeration,
mechanical energy, electricity, or energy in any form convertible to
those uses that does not expend or use conventional energy fuels and
that uses any of the following energy generating technologies:
(A) Biogas.
(B) Biomass.
(C) Geothermal.
(D) Solar photovoltaic.
(E) Solar thermal.
(F) Wind.
(2) An emerging commercially competitive transportation-related
technology capable of creating long-term, high value-added jobs for
Californians while enhancing the state's commitment to energy
conservation, pollution and greenhouse gas emission reduction, and
transportation efficiency. Eligible transportation-related technology
projects do not include those required to be undertaken pursuant to
state or federal law or regulations, air district rules or
regulations, memoranda of understanding with a governmental entity,
or legally binding agreements or documents. The State Air Resources
Board shall advise the authority to ensure that the requirements of
this paragraph are met.
(3) Energy storage technology as defined in subdivision (a) of
Section 2835 of the Public Utilities Code.
(4) Stationary fuel cells designed for renewable fuel use.
(f)
(e) "Financial assistance" means loans, loan loss
reserves, interest rate reductions, insurance, guarantees or other
credit enhancements or liquidity facilities, contributions of money,
property, labor, or other terms of value, or any combination thereof,
as determined by the resolutions of the authority.
(g)
(f) "Financial institution" means an insured depository
institution or insured credit union, as those terms are defined in
Section 103 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. Sec. 4702).
(h)
(g) "Manufacture" means to make, process, prepare,
alter, repair, or finish in whole or in part, or to assemble.
(i)
(h) "Program" means the Clean Energy Economy and Jobs
Incentive Program established pursuant to Section 26051.
(j)
(i) "Project total" means the total capital expenses
for an applicant's project.
26051. 26091. (a) The authority
shall establish the Clean Energy Economy and Jobs Incentive Program
to provide financial assistance to eligible California-based entities
for the manufacturing of eligible technologies.
(b) The authority shall only provide financial assistance
to a evaluate project that meets all
of the applications based upon the net benefits test
pursuant to Section 26011.8, which may include, but are not limited
to, the following requirements criteria
:
(1) Meets or exceeds the state's energy and environmental goals.
(2) Promotes instate commercialization and manufacturing capacity
that will establish California as a leader in clean energy
technologies.
(3) Supports instate manufacturing of eligible clean energy
technology on a scale that is capable of meeting a market demand.
(4) Maximizes the leveraging of other funding sources.
(c) A project is eligible for financial assistance if the
applicant demonstrates, to the satisfaction of the authority, all of
the following:
(1) The eligible clean energy technology is significantly more
energy efficient or cost effective than current comparable products
commercially available and has been researched and developed.
(2) The project is for the full-scale commercialization or
manufacture of a product to be used as a part of an eligible clean
energy technology within three years of the date of the submission of
the application.
(3) The financial assistance would accelerate the construction or
expansion of the project.
(4) The eligible clean technology is manufactured by a
California-based entity that is transitioning from product
development to commercialization.
(5) Any other criteria established by the authority.
(d) (1) The financial assistance provided to an applicant shall
not exceed five million dollars ($5,000,000), and shall not be worth
more than 25 percent of the project total as provided by the
applicant.
(2) Notwithstanding paragraph (1), the authority may provide
financial assistance of up to ten million dollars ($10,000,000) if
the authority provides notice to the chair of the Joint Legislative
Budget Committee and the chair concurs with the provision of the
financial assistance within 30 days of the notice.
(e) The financial assistance provided pursuant to this
chapter shall only be provided in partnership with a financial
institution.
26052. 26092. (a) This
division chapter does not require the authority
to promulgate regulations to implement this division
chapter until the Legislature appropriates funds
to the authority for the purposes of this division
chapter .
(b) The implementation of this division
chapter is contingent on the availability of the nonbypassable
system benefits charge collected by the Public Utilities Commission
pursuant to its authority under the Public Utilities Code, and
private and federal funds for the purpose of developing clean energy
technology.
(c) On or before January 1, 2015, the Legislative Analyst's Office
shall report to the Joint Legislative Budget Committee on the
effectiveness of the program by evaluating factors, including, but
not limited to, all of the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in, or relocated
to, California as a result of the program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The amount of reduction in greenhouse gas emissions, air
pollution, water pollution, and energy consumption.
26053. 26093. The authority shall
make every effort to expedite the operation of this division
chapter , and shall adopt regulations for
purposes of this division and Section 26011.5
chapter 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, 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.
26054. 26094. (a) The Clean Energy
Economy and Jobs Incentive Program Fund is hereby established in the
State Treasury, and upon appropriation by the Legislature, shall be
expended by the authority for the purposes of this division
chapter .
(b) Of the moneys appropriated pursuant to subdivision (a), up to
three hundred thousand dollars ($300,000) may be expended by the
authority for the initial administrative costs in implementing this
division chapter .
(c) The authority may fix fees and other charges to reimburse the
costs of the authority in its administration of this
division chapter .
26055. 26095. This
division chapter shall remain in effect only
until January 1, 2018, and as of that date is repealed, unless a
later enacted statute, that is enacted before January 1, 2018,
deletes or extends that date.