Bill Text: CA SB1121 | 2013-2014 | Regular Session | Amended
Bill Title: California Climate Technology and Infrastructure
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2014-08-28 - Ordered to inactive file on request of Assembly Member V. Manuel PĂ©rez. [SB1121 Detail]
Download: California-2013-SB1121-Amended.html
BILL NUMBER: SB 1121 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 2014
AMENDED IN ASSEMBLY JULY 1, 2014
AMENDED IN ASSEMBLY JUNE 10, 2014
AMENDED IN SENATE APRIL 29, 2014
AMENDED IN SENATE APRIL 10, 2014
INTRODUCED BY Senator De León
FEBRUARY 19, 2014
An act to add Chapter 5 (commencing with Section 26100)
to Division 16 of the Public Resources 7 (commencing
with Section 63100) to Division 1 of Title 6.7 of the Government
Code, relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
SB 1121, as amended, De León. California Climate Technology and
Infrastructure Financing Act.
Existing law establishes the California Alternative Energy and
Advanced Transportation Financing Authority consisting of specified
members and authorizes the authority to provide financial assistance
to projects related to the utilization of alternative energy sources
or advanced transportation technologies.
The Bergeson-Peace Infrastructure and Economic Development Bank
Act authorizes the California Infrastructure and Economic Development
Bank, governed by a board of directors, to make loans, issue bonds,
and provide other assistance for various types of economic
development projects, among other things. The activities of the bank
under these provisions are funded from the California Infrastructure
and Economic Development Bank Fund, which is continuously
appropriated for these purposes.
This bill would enact the California Climate Technology and
Infrastructure Financing Act and would require the
authority, bank, in consultation with the State
Air Resources Board, to develop administer
the California Climate Technology and Infrastructure
Financing Program Solutions Accelerator Account, which
would be established by the bill in the California Infrastructure
and Economic Development Bank Fund, to provide financial
assistance to eligible greenhouse gas emissions reduction projects,
as defined. The bill would establish the Climate Technology
and Infrastructure Finance Fund and would, upon appropriation by the
Legislature, require the authority to expend moneys in the fund for
the purposes of the program. defined, upon
appropriation by the Legislature.
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 7 (commencing
with Section 26100) 63100) is added to
Division 16 1 of Title 6.7 of
the Public Resources Government
Code, to read:
CHAPTER 5. 7. CALIFORNIA CLIMATE
TECHNOLOGY AND INFRASTRUCTURE FINANCING ACT
Article 1. General Provisions and Definitions
26100. 63100. (a)
The Legislature finds and declares all of the following:
(a)
(1) The California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code) requires the reduction of statewide greenhouse gas
emissions to 1990 levels by 2020.
(b)
(2) As a result of the act and complimentary policies,
California has established itself as a leader in the development of
clean technologies, helping to drive innovation and deployment of a
variety of greenhouse gas emissions reducing technologies.
(c)
(3) However, there exist barriers to the widespread
adoption and commercial scale deployment of these technologies and,
as a result, cleaner, lower-carbon, cheaper, and more reliable energy
remains unavailable to many California consumers and businesses.
(d)
(4) Among the most critical barriers is the
availability of financing options for consumers and businesses, and
the lack of familiarity and perceived risk for investors due to
limited data, and, often, small and expensive financial transactions.
(e)
(5) To achieve the state's climate goals, the state
should better optimize our limited public dollars to attract more
private investment, so that each dollar of public funds provides
multiple dollars of private capital.
(f)
(6) A statewide financing entity focused on fostering
private investments in low-carbon projects can provide significant
leveraging of private dollars to make public funds go further.
(g)
(7) A statewide financing entity in California could
accelerate the transition to a low-carbon economy, achieve the state'
s climate goals, and improve access for all Californians to cleaner
energy. A financing entity could help achieve all of the following
goals:
(1)
(A) Evaluate, coordinate, and increase private
investment in greenhouse gas emissions reduction projects that are
not currently able to obtain financing in the capital markets at a
reasonable cost and with a reasonable rate of return to project
developers at scale and with significant private sector
participation.
(2)
(B) Lower rates and decrease costs for utility
ratepayers within the state, expand the accessibility and
affordability of clean energy for end users, ensure the reliability
and safety of the state's energy and water supplies, increase the
climate resilience of the state's infrastructure, increase the use of
clean energy, promote energy efficiency, and advance the state's
energy- and infrastructure-related economy.
(3)
(C) Foster increasingly efficient, low-cost capital
financing at scale and with maximum private sector participation for
eligible projects through the creation, where appropriate, of
financial performance data, standardized contracts, underwriting
standards, and measurement and verification protocols.
(4)
(D) Coordinate with, and enhance, existing clean energy
financing programs to fill financing gaps not currently filled by
existing programs or markets and further enhance the scale and scope
of existing programs or markets to enabling financing at scale and
with maximum private sector participation.
(5)
(E) Implement a variety of financing tools, including,
but not limited to, loans, loan guarantees, securitization,
warehousing, and other forms of financing support and risk
management, to support greenhouse gas emissions reduction projects
necessary to advance the state's policy objectives, including the
reduction of greenhouse gas emissions within the state.
(b) Moneys appropriated by the Legislature for the purposes of
this chapter from the Greenhouse Gas Reduction Fund shall be expended
consistent with the appropriation processes and criteria established
by the Greenhouse Gas Reduction Fund Investment Plan and Communities
Revitalization Act (Chapter 4.1 (commencing with Section 39710) of
Part 2 of Division 26 of the Health and Safety Code) to ensure
investments made pursuant to this chapter benefit disadvantaged
communities identified pursuant to Section 39711 of the Health and
Safety Code.
26101. 63101. For the purposes of
this chapter, the following terms mean the following:
(a) "Account" means the California Climate Solutions Accelerator
Account established pursuant to Section 63130.
(a)
(b) "Clean agriculture project" means a project,
product, service, function, or measure, or an aggregation of
projects, products, services, functions, or measures, having the
primary purpose of deploying a product or service that avoids or
reduces emissions of greenhouse gases directly or indirectly caused
by the production or processing of crops or livestock.
(b)
(c) "Clean energy infrastructure project" means the
construction, alteration, or repair of types of infrastructure
necessary for the deployment of technologies, products, or services,
that will avoid or reduce emissions of greenhouse gases, including,
but not limited to, the following:
(1) Electric transmission and distribution facilities
interconnected to renewable energy projects or system efficiency
projects.
(2) Hydrogen transportation and distribution systems.
(3) Car sharing, ridesharing, and bicycle sharing facilities.
(4) Improvements to infrastructure used for the transportation of
passengers, goods, or freight.
(c)
(d) "Demand response project" means a project, product,
service, function, or measure, or an aggregation of projects,
products, services, functions, or measures, that results in
reductions in greenhouse gas emissions by reducing electric usage by
end-use customers in the state from their normal consumption pattern
in response to any of the following:
(1) Changes in the price of electricity over time.
(2) Incentive payments designed to induce lower electricity use at
times of high market prices or when system reliability is
jeopardized.
(d)
(e) "Energy efficiency project" means a project,
product, service, function, or measure, or an aggregation of
projects, products, services, functions, or measures, that results in
the reduction of energy usage required to achieve the same level of
service or output prior to the application of the project, product,
service, function, or measure, and reduces emissions of greenhouse
gas relative to emissions that would have occurred prior to the
application of the project, product, service, function, or measure,
including, but not limited to, either of the following:
(1) Water capture, conveyance, distribution, use, reuse, and
recycling.
(2) Wastewater collection, treatment, and disposal.
(e) "Fund" means the California Climate Technology and
Infrastructure Finance Fund established pursuant to Section 26130.
(f) "Greenhouse gas emissions reduction project" means a project,
product, service, function, or measure, or an aggregation of
projects, products, services, functions, or measures, that avoids or
reduces emissions of greenhouse gases, including, but not limited to,
any of the following:
(1) Energy efficiency projects.
(2) Clean energy infrastructure projects.
(3) Innovation energy technology projects.
(4) Renewable and small scale distributed energy
projects.
(5) System efficiency projects.
(6) Clean agriculture projects.
(7) Low-carbon transportation projects.
(8) Demand response projects.
(9) Land-based greenhouse gas sequestration projects.
(10) A combination of the projects specified in paragraphs (1) to
(9), inclusive.
(g) "Innovation energy technology project" means a project having
either of the following primary purposes:
(1) Deployment of a technology, infrastructure, practice, product,
or service that avoids or reduces emissions of greenhouse gases and
that employs new or significantly improved technologies or practices,
as compared to technologies or practices that are in general use in
the commercial marketplace in the United States at the time the
project is approved by the authority bank
pursuant to this chapter.
(2) Manufacturing of a commercially ready energy technology or
product that avoids or reduces emissions of air pollutants and
greenhouse gases and that incorporates an innovative manufacturing
process or processes not in general use in the commercial marketplace
in the United States at the time the project is approved by the
authority bank pursuant to this
chapter.
(h) "Land-based greenhouse gas sequestration project" means a
project, product, service, function, or measure, or an aggregation of
projects, products, services, functions, or measures, having a
primary purpose of developing, constructing, or deploying a
project in forests, grasslands, wetlands, or other habitat types in
California for which a carbon credit or offset protocol has been
adopted by the state board. reducing greenhouse gas
emissions, including carbon sequestration in forests, urban forests,
grasslands, wetlands, o r other habitat types in
California.
(i) "Low-carbon transportation project" means a project, product,
service, function, or measure, or an aggregation of projects,
products, services, functions, or measures, that results in
reductions in greenhouse gas emissions from the transportation of
people, goods, freight, or off-road equipment.
(j) "Program" means the California Climate Technology and
Infrastructure Financing Program developed pursuant to Section 26110.
(k)
(j) "Renewable energy project" means the development,
construction, deployment, or alteration of an eligible renewable
energy resource, as defined in Section 399.12 of the Public Utilities
Code, that avoids or reduces greenhouse gas emissions.
(l)
(k) "State board" means the State Air Resources Board.
(m)
(l) "System efficiency project" means the development,
construction, deployment, alteration, or repair of a distributed
generation, energy storage, smart grid, advanced battery, microgrid,
fuel cell, water pumping, or combined heat and power, technology or
system that results in the reductions of greenhouse gas emissions.
Article 2. California Climate Change Technology and
Infrastructure Financing Program Solutions Accelerator
26110. 63110. (a) The
authority, bank, in consultation with the state
board, shall develop and administer the California
Climate Technology and Infrastructure Financing Program
Solutions Accelerator Account to provide
financial assistance for greenhouse gas emissions reduction projects
consistent with this chapter, the guiding document developed pursuant
to Section 26120, 63120, and both of
the following:
(1) Earning a net positive return on the financial assistance made
pursuant to this chapter.
(2) Maximizing net greenhouse gas emissions reductions for each
dollar provided by focusing financial support on filling demonstrated
financing gaps that are the key barriers to greater investment or
market transformation.
(b) Greenhouse gas emissions reduction projects eligible for
financial assistance pursuant to this chapter shall demonstrate all
of the following:
(1) Reduction in net emissions of greenhouse gases.
(2) Partnership with a private financial institution or lender.
(3) Ability for the project to meet applicable permitting
requirements.
(4) Ability to create jobs in the state.
(5) Technological viability.
(6) Ability to, over time, pay back the financial assistance
provided pursuant to this chapter.
(7) The existence of a financing gap that is a barrier to project
implementation or market growth.
(8) Other requirements deemed necessary by the authority.
bank.
(c) The authority bank shall
establish a portfolio approach to the provision of financial
assistance to address different industry needs and different
development and commercialization stages of technology.
(d) The authority bank may accept
applications for financial assistance pursuant to the program on an
ongoing and open solicitation basis.
(e) (1) Sections 10295 of, and Article 4 (commencing with Section
10335) of Chapter 2 of Part 2 of Division 2 of, the Public Contract
Code shall not apply to agreements entered into by the bank in
connection with financial assistance provided pursuant to this
chapter.
(2) To the extent that this chapter is inconsistent with other
state laws, this chapter shall prevail over those laws.
26111. 63111. (a) The
authority, bank, in consultation with the state
board, shall establish guidelines for the program and project
eligibility that are consistent with the requirements of the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code) and
the Greenhouse Gas Reduction Fund Investment Plan and Communities
Revitalization Act (Chapter 4.1 (commencing with Section 39710) of
the Health and Safety Code). The guidelines shall include
consideration of whether providing financial assistance for a
greenhouse gas emissions reduction project will do the following:
(1) Increase private investment in greenhouse gas emissions
reduction projects that are not currently able to obtain financing at
attractive terms or through an existing state program.
(2) Enable the implementation and scaling of greenhouse gas
emissions reduction projects to increase deployment of innovative
financing by leveraging limited public dollars to attract private
capital.
(3) Facilitate the deployment of greenhouse gas emissions
reduction projects at an accelerated rate.
(4) Enhance the competitiveness of California-based companies and
reduce leakage of greenhouse gas emissions to other jurisdictions.
(5) Achieve cobenefits, such as enhanced water supply, improved
water quality, improved air quality, enhanced urban environments,
local reliability and resiliency, and improved public
health and wildlife habitat.
(6) Address barriers that have prevented adequate commercial
financing of greenhouse gas emissions reduction projects.
(b) Priority shall be given to projects that demonstrate the
ability to meet the following criteria:
(1) Increase private investment in otherwise commercially viable
greenhouse gas emissions reduction projects not currently able to
obtain financing in the capital markets at a reasonable cost with a
reasonable rate of return.
(2) Increase private investment in greenhouse gas emissions
reduction projects located in disadvantaged communities identified
pursuant to Section 39711 of the Health and Safety Code.
(3) Maximize economic, environmental, and public health benefits
to the state. state, including the
competitiveness of California companies to achieve greenhouse gas
emissions reduction.
26112. 63112. (a)
The authority bank board shall
appoint an executive officer to oversee and implement the
program, this chapter, who meets all
both of the following requirements:
(a)
(1) Demonstrates significant experience and knowledge
of private sector financing of low-carbon technologies and projects.
(b)
(2) Does not have any financial interest in any
greenhouse gas emissions reduction project under consideration or any
financial interest in an investment institution or its affiliates or
any other entity seeking or likely to seek financial assistance for
any greenhouse gas emissions reduction project pursuant to this
chapter.
(c) Has
(b) The executive officer shall
have the ability to hire staff with experience and
knowledge of private sector financing structures and tools.
26113. 63113. The
authority bank shall convene, at least twice
each year, in a public process, an advisory stakeholder group
consisting of clean energy stakeholders with experience in clean
energy financing financing, financing
assistance for low-income communities, or technological
expertise. The advisory group shall provide to the authority
bank information on topics, including, but not
limited to, current market needs, financial feasibility of financial
tools, commercial feasibility of greenhouse gas emissions reducing
technologies and projects, and relevant studies.
Article 3. Oversight and Coordination
26120. 63120. (a) The
authority On or before December 30, 2015, the bank
shall prepare a three-year guiding document, consistent with
the three-year investment plan developed pursuant to Section 39716 of
the Health and Safety Code, outlining planned financial assistance
categories and how financial assistance furthers the reductions of
greenhouse gas emissions. The guiding document shall establish
priorities for investment of funds to achieve the goals of this
chapter and describe how funding will complement existing public and
private investments, including existing state programs that further
the goals of this chapter. The guiding document shall identify gaps
in existing programs or private financing markets that can be filled
by financial assistance made pursuant to this chapter to achieve the
goals of this chapter. The bank may use the three-year
investment plan developed pursuant to Section 39716 of the Health and
Safety Code to guide investments made prior to the completion of the
guiding document pursuant to this section.
(b) In developing the guiding document, the authority
bank shall convene and consult with a climate
and energy incentive coordination advisory body consisting of the
following:
(1) The chair of the state board or his or her designee.
(2) The chair of the State Energy Resources Conservation and
Development Commission or his or her designee.
(3) The President of the Public Utilities Commission or his or her
designee.
(4) The Treasurer or his or her designee.
(5) The Director of the Governor's Office of Business and Economic
Development or his or her designee.
(6) The Director of Water Resources or his or her designee.
(7) Two members appointed by the Speaker of the Assembly.
(8) Two members appointed by the Senate Committee on Rules.
(9) Not less than one member appointed pursuant to paragraph (7)
or (8) shall represent the interest of disadvantaged communities, as
identified pursuant to Section 39711 of the Health and Safety Code,
and shall have appropriate expertise.
(c) The advisory body is subject to the requirements of the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
the Government Code). 2).
26121. 63121. (a) No later than
July 30, 2016, 2017, and annually
thereafter, the authority bank shall
report to the Legislature on the progress of the financial assistance
provided pursuant to this chapter, the performance of the
program, investments made pursuant to this chapter,
how the financial assistance provided has supported the goals
of this chapter, and how the financial assistance has been
coordinated with other state incentive programs.
(b) The report required pursuant to subdivision (a) shall be
submitted in accordance with Section 9795 of the Government
Code. 9795.
Article 4. Financial Provision
26130. 63130. (a) The
California Climate Technology and Infrastructure
Finance Fund Solutions Accelerator Account is
hereby established in the State Treasury.
California Infrastructure and Economic Development Bank Fund.
Moneys in the fund, account, upon
appropriation of the Legislature, shall be expended by the
authority bank for the purpose of this chapter.
(b) The fund account is a repository
of both of the following:
(1) Moneys transferred by the Legislature from the Greenhouse Gas
Reduction Fund established pursuant to Section 16428.8 of
the Government Code for the purposes of carrying out this
chapter.
(2) Other moneys, including, but not limited to, revenues from
bonds and other securities issued by the authority
bank and fees collected pursuant to this division, and
gifts and grants to the authority, bank,
if issued, collected, granted, or gifted for the purposes of this
chapter.
