Bill Text: CA AB796 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Financial assistance: Clean Energy Economy and Jobs

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Vetoed) 2012-09-27 - Consideration of Governor's veto pending. [AB796 Detail]

Download: California-2011-AB796-Amended.html

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BILL NUMBER: AB 796	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	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 add and repeal Chapter 5 (commencing with Section 26090)
of Division 16 of the Public Resources Code, relating to financial
assistance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 796, as amended, Blumenfield. Financial assistance: Clean
Energy Economy and Jobs Incentive Program.
   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   an  eligible clean energy
technology  areas   project  . 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.  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:
   (a) "Biogas" means digester gas, landfill gas, and any gas derived
from an eligible biomass feedstock.
   (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.  
   (d) 
    (c)    "Eligible clean energy technology" means
 a technology in any of the following areas  
either of the following  : 
   (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.  
   (1) (A) A device or technology used for a renewable electrical
generation facility, as defined in paragraph (1) of subdivision (a)
of Section 25741.  
   (B) A combined heat and power system, as defined in Section 2840.2
of the Public Utilities Code.  
   (C) Distributed generation and energy storage technologies
eligible under the self-generation incentive program pursuant to
Section 379.6 of the Public Utilities Code, as determined by the
Public Utilities Commission.  
   (D) A facility designed for the production of renewable fuels, the
efficient use of which reduce the use of fossil or nuclear fuels.
 
   (E) Energy efficiency devices or technologies that reduce the need
for new electric generation and reduce emissions of toxic and
criteria pollutants, and greenhouse gases. 
   (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.
 
   (e) 
    (d)    "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. 
   (f) 
    (e)    "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). 
   (g) 
    (f)    "Manufacture" means to make, process,
prepare, alter, repair, or finish in whole or in part, or to
assemble. 
   (h) 
    (g)    "Program" means the Clean Energy Economy
and Jobs Incentive Program established pursuant to Section 26051.

   (i) 
    (h)    "Project total" means the total capital
expenses for an applicant's project.
   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 evaluate project applications based upon
the net benefits test pursuant to Section 26011.8, which may include,
but are not limited to, the following 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.
   26092.  (a) This chapter does not require the authority to
promulgate regulations to implement this chapter until the
Legislature appropriates funds to the authority for the purposes of
this chapter.
   (b) The implementation of this 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.
   26093.  The authority shall make every effort to expedite the
operation of this chapter, and shall adopt regulations for purposes
of this 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.
   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 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
chapter.
   (c) The authority may fix fees and other charges to reimburse the
costs of the authority in its administration of this chapter.
   26095.  This 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.