Bill Text: CA AB905 | 2013-2014 | Regular Session | Amended

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

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Bill Title: Real property: environmental fee covenants.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB905 Detail]

Download: California-2013-AB905-Amended.html

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BILL NUMBER: AB 905	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Ting

                        FEBRUARY 22, 2013

   An act  to add Section 1471.5 to the Civil Code, 
relating to  energy   real property  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 905, as amended, Ting.  Energy: energy efficiency
programs: financing.   Real property: environmental fee
covenants.  
   Existing law provides for the recording of an instrument
containing an Environmental Restriction covenant made by an owner of
land or by the grantee of land to do or refrain from doing an act
that is reasonably necessary to protect present or future human
health or safety or the environment as a result of the presence on
the land of hazardous materials.  
   This bill would also provide for the recording of an Environmental
Fee Covenant, as specified, that is, among other things, imposed in
connection with the installation on the property of equipment or
improvements that are intended to promote, among other things, energy
efficiency and the reduction of the consumption of water or other
natural resources.  
   Existing law establishes various energy efficiency programs to
assist public and private entities to implement energy efficiency
projects to reduce the consumption of energy.  
   This bill would state the intent of the Legislature to enact
legislation to provide an efficient financing mechanism for
commercial property owners to make improvements to reduce the
consumption of energy and natural resources. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1471.5 is added to the 
 Civil Code   , to read:  
   1471.5.  (a) Notwithstanding Section 1468 or any other law, a
covenant made by an owner of land or by the grantee of land to do or
refrain from doing some act on his or her own land, which doing or
refraining is expressed to be for the benefit of the covenantee,
regardless of whether or not it is for the benefit of land owned by
the covenantee, shall run with the land owned by or granted to the
covenantor if all the following requirements are met:
   (1) The land of the covenantor that is to be affected by the
covenant is particularly described in the instrument containing the
covenant.
   (2) The successive owners of the land are expressed to be bound
thereby for the benefit of the covenantee in the instrument
containing the covenant.
   (3) The covenant is an Environmental Fee Covenant pursuant to
subdivision (e).
   (4) The instrument containing the covenant is recorded in the
office of the recorder of each county in which the land or some
portion thereof is situated.
   (b) Except as provided by Section 1466 or as specifically provided
in the instrument creating a covenant made pursuant to this section,
the covenant shall be binding upon each successive owner, during his
or her ownership, of any portion of the land affected thereby and
upon each person having any interest therein derived through any
owner thereof.
   (c) If several persons are subject to the burden of a covenant
recorded pursuant to this section, it shall be apportioned among them
pursuant to Section 1467, except if only a portion of the land is so
affected thereby, the apportionment shall be only among the several
owners of that portion.
   (d) This section shall apply to the mortgagee, trustee, or
beneficiary of a mortgage or deed of trust upon the land or any part
thereof while, but only while, he or she, in that capacity, is in
possession thereof.
   (e) For purposes of this section, "Environmental Fee Covenant" is
a covenant that meets all of the following requirements:
   (1) The covenant imposes a transfer fee meeting the requirements
set forth in Section 1098. The amount of the transfer fee imposed
through the covenant, combined with the amount of the fee imposed
through any prior Environmental Fee Covenant imposed on the same
property, shall not exceed 2 percent of the full cash value, as
defined in Section 110 of the Revenue and Taxation Code, of the
property upon transfer.
   (2) The covenant encumbers property that, at the time the covenant
is entered, either does not contain residential units or contains
five or more residential units.
   (3) The covenant is imposed in connection with the installation on
the property of equipment or improvements that are intended to
promote any of the following:
   (A) Energy efficiency.
   (B) The reduction of the generation of greenhouse gasses.
   (C) The reduction of the consumption of water or other natural
resources.
   (D) Compliance with Part 6 and Part 11 of Title 24 of the
California Code of Regulations.
   (E) The generation of renewable energy using one or more means
identified in paragraph (1) of subdivision (a) of Section 25741 of
the Public Resources Code.
   (4) The covenant includes in its title the words: "Environmental
Fee Covenant."
   (5) The covenant recites that it meets the requirements of this
subdivision. It shall be rebuttably presumed that the covenant meets
the requirements of this subdivision. The presumption may be overcome
if it is established by a preponderance of the evidence that the
covenant fails to meet the requirements of this subdivision. 

  SECTION 1.    It is the intent of the Legislature
to enact legislation to provide an efficient financing mechanism for
commercial property owners to make improvements to reduce the
consumption of energy and natural resources.