Bill Text: CA SB1121 | 2013-2014 | Regular Session | Amended

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

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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 Pérez. [SB1121 Detail]

Download: California-2013-SB1121-Amended.html

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BILL NUMBER: SB 1121	AMENDED
	BILL TEXT

	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 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.
   This bill would enact the California Climate Technology and
Infrastructure Financing Act and would require the authority, in
consultation with the State Air Resources Board, to develop the
California Climate Technology and Infrastructure Financing Program to
provide financial assistance to eligible greenhouse gas emissions
reduction projects, as defined. The bill would establish the Climate
Technology and Infrastructure  Financing  
Finance  Fund and would, upon appropriation by the Legislature,
require the authority to expend moneys in the fund for the purposes
of the program.
   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 26100) is added to
Division 16 of the Public Resources Code, to read:
      CHAPTER 5.  CALIFORNIA CLIMATE TECHNOLOGY AND INFRASTRUCTURE
FINANCING ACT



      Article 1.  General Provisions and  Definition
  Definitions 


   26100.  The Legislature finds and declares all of the following:
   (a) 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) 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) 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) 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) 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) 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) 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) 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) 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) 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) 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) Implement a variety of financing tools, including, but not
limited to, loans, loan guarantees, securitization, warehousing,
 insurance, portfolio insurance,  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.
   26101.  For the purposes of this chapter, the following terms mean
the following:
   (a) "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) "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) "Demand response project" means a project, product, service,
function, or measure, or an aggregation of projects, products,
services, functions, or measures, that  changes 
 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) "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  Financing   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 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 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 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.
   (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) "Renewable energy project" means the development,
construction, deployment,  alteration, or repair of a solar,
wind, geothermal, appropriately sourced biomass, anaerobic digestion
of organic waste streams, small hydropower, ocean or tidal, fuel cell
using renewable fuels, or advanced biofuel or other renewable fuel,
energy generation facility.   or alteration of an
eligible renewable e   nergy resource, as defined in Section
399.12 of the Public Utilities Code, that avoids or reduces
greenhouse gas emissions. 
   (l) "State board" means the State Air Resources Board.
   (m) "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.   system that results in the reductions
of greenhouse gas emissions. 

      Article 2.   California  Climate Change Technology and
Infrastructure Financing Program


   26110.  (a) The authority, in consultation with the state board,
shall develop and administer the California Climate Technology and
Infrastructure Financing Program to provide financial assistance for
greenhouse gas emissions reduction projects consistent with this
chapter, the guiding document developed pursuant to Section 26120,
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)  Demonstrate the   The   
existence of a financing gap that is a barrier to project
implementation or market growth.
   (8) Other requirements deemed necessary by the authority.
   (c) The authority 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 may accept applications for financial assistance
pursuant to the program on an ongoing and open solicitation basis.
   26111.  (a) The authority, 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, and
improved public health and wildlife habitat.
   (6)  Addresses   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)  Ability to increase   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) Ability to increase   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)  Ability to maximize  Maximize 
economic, environmental, and public health benefits to the state.
   26112.  The authority shall appoint an executive officer to
oversee and implement the program, who meets all of the following
requirements:
   (a) Demonstrates significant experience and knowledge of private
sector financing of low-carbon technologies and projects.
   (b) Does not have any financial interest in any greenhouse gas
 emission   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  emission
  emissions  reduction project pursuant to this
chapter.
   (c) Has the ability to hire staff with experience and knowledge of
private sector financing structures and tools.
   26113.  The authority 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 or
technological expertise. The advisory group shall provide to the
authority 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.  (a) The authority 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.
   (b) In developing the guiding document, the authority 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  the Department 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.
   (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).
   26121.  (a) No later than July 30, 2016, and annually thereafter,
the  commission   authority  shall report
to the Legislature on the progress of the financial assistance
provided pursuant to this chapter, the performance of the program,
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.

      Article 4.  Financial Provision


   26130.  (a) The Climate Technology and Infrastructure Finance Fund
is hereby established in the State Treasury. Moneys in the fund,
upon appropriation of the Legislature, shall be expended by the
authority for the purpose of this chapter.
   (b) The fund 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 and fees collected
pursuant to this division, and gifts and grants to the authority, if
issued, collected, granted, or gifted for the purposes of this
chapter.