Bill Text: CA SB1268 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Energy: energy conservation assistance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 615, Statutes of 2012. [SB1268 Detail]

Download: California-2011-SB1268-Amended.html

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BILL NUMBER: SB 1268	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 7, 2012
	AMENDED IN ASSEMBLY  JUNE 25, 2012
	AMENDED IN SENATE  MAY 1, 2012
	AMENDED IN SENATE  APRIL 10, 2012

INTRODUCED BY   Senator Pavley

                        FEBRUARY 23, 2012

   An act to amend Sections 25411, 25415, 25421, 25443,  and
 25449.4  , and 26142  of, and to add Sections
25412.5 and 25442.8 to, the Public Resources Code, relating to energy
 , and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1268, as amended, Pavley. Energy: energy conservation
assistance.
   (1) The Energy Conservation Assistance Act of 1979 requires the
State Energy Resources Conservation and Development Commission, until
January 1, 2013, to administer the State Energy Conservation
Assistance Account, a continuously appropriated account, to provide
grants and loans to local governments and public institutions to
maximize energy use savings. The act defines "energy conservation
measures" to include measures primarily intended to reduce energy
consumption or allow the use of a more desirable energy source. The
act defines "unit of local government" to be a unit of general
purpose government below the state or a special district. The act
requires entities receiving a loan to repay the loan plus interest in
not more than 30 equal semiannual payments with the first semiannual
payment made on or before December 22 of the fiscal year following
the year in which the project is completed. The act authorizes the
commission to borrow moneys from specified entities from proceeds of
revenue bonds issued by those entities. The act requires unencumbered
funds in the account, on January 1, 2013, to revert back to the
General Fund.  Existing law appropriates to the account
$25,000,000 of the unencumbered balance of the $50,000,000 from the
Renewable Resource Trust Fund that was appropriated to the California
Alternative Energy and Advanced Transportation Financing Authority
for specified purposes. Existing law, on and after January 1, 2013,
reverts the unencumbered balance of the above $25,000,000 to the
Renewable Resource Trust Fund for use by the authority. 
   This bill would extend the act to January 1, 2028. The bill would
additionally include measures primarily intended to reduce peak
electricity demand as "energy conservation measures" and any
combination of units of local government below the state and special
districts formed for the joint exercise of power as "units of local
government" for the purposes of the act. The bill would provide
instead that the loan repayments be made in accordance with a
schedule established by the commission. The bill would require the
commission to take steps to  perform   solicit
 loan  solicitations in a manner that encourages
  applications to encourage  an equitable
distribution of loans statewide  , to award loans in specified
regions, and to place an emphasis on offering these loans in
disadvantaged   communities  . The bill would require
any unexpended funds from the proceeds of revenue bonds sold for the
purposes of the act remaining in the account on January 1, 2028, to
remain in the account until all bond obligations have been satisfied
and thereafter revert the remaining unexpended funds to the General
Fund. The bill would require unexpended funds from the federal
American Recovery and Reinvestment Act of 2009 remaining in the
account on January 1, 2028, to revert to the Federal Trust Fund.
 The bill would require, on and after January 1, 2028, the
unencumbered balance of the $25,000,000 appropriated to the account
from the Renewable Resource Trust Fund to be available for
appropriation by the Legislature for the benefit of ratepayers.
Because this bill would extend the operation of a continuously
appropriated account and would expand the purpose of, and entities
qualified for, assistance from the account, this bill would make an
appropriation. 
   (2) Existing law establishes, until January 1, 2016, the Local
Jurisdiction Energy Assistance Account to provide funds administrated
by the commission for loans to local jurisdictions to reduce energy
costs. Existing law requires the commission to periodically set
interest rates on the loans based on surveys of existing financial
markets and at rates not less than 3% per annum. Existing law
requires that unencumbered funds in the account on January 1, 2028,
be deposited in the Federal Trust Fund.
   This bill would extend the operation of the account to January 1,
2028. The bill would require the act to set the interest rates on the
loans at not less than 1% per annum. The bill would require the
commission to take steps to  provide loans in a manner that
encourages   solicit loan applications to encourage
 an equitable distribution of loans  statewide 
 statewide, to award loans in specified regions, and to place an
emphasis on offering these loans in disadvantaged  
communities  . The bill, instead, would require unencumbered
funds in the account on January 1, 2028, to be deposited in the
Petroleum Violation Escrow Account.
   Vote:  2/3   majority  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 25411 of the Public Resources Code is amended
to read:
   25411.  As used in this chapter:
   (a) "Allocation" means a loan of funds by the commission pursuant
to the procedures specified in this chapter.
   (b) "Building" means any existing or planned structure that
includes a heating or cooling system, or both. Additions to an
original building shall be considered part of that building rather
than a separate building.
   (c) "Eligible institution" means a school, hospital, public care
institution, or a unit of local government.
   (d) "Energy audit" means a determination of the energy consumption
characteristics of a building or facility that does all of the
following:
   (1) Identifies the type, size, and energy use level of the
building or facility and the major energy using systems of the
building or facility.
   (2) Determines appropriate energy conservation maintenance and
operating procedures.
   (3) Indicates the need, if any, for the acquisition and
installation of energy conservation measures.
   (e) "Energy conservation maintenance and operating procedure"
means a modification or modifications in the maintenance and
operations of a building or facility, and any installations therein
(based on the use time schedule of the building or facility), which
are designed to reduce energy consumption in the building or facility
and that require no significant expenditure of funds.
   (f) "Energy conservation measure" means an installation or
modification of an installation in a building or facility that is
primarily intended to reduce energy consumption or peak electricity
demand, or allow the use of a more desirable energy source.
   (g) "Energy conservation project" means an undertaking to acquire
and to install one or more energy conservation measures in a building
or facility, and technical assistance in connection with that
undertaking.
   (h) "Facility" means any major energy using system of an eligible
institution whether or not housed in a building.
   (i) "Hospital" means a public or nonprofit institution that is
both of the following:
   (1) A general hospital, tuberculosis hospital, or any other type
of hospital, other than a hospital furnishing primarily domiciliary
care.
   (2) Duly authorized to provide hospital services under the laws of
this state.
   (j) "Hospital building" means a building housing a hospital and
related operations, including laboratories, laundries, outpatient
departments, nurses' home and training activities, and central
service operations in connection with a hospital, and also includes a
building housing education or training activities for health
professions personnel operated as an integral part of a hospital.
   (k) "Local government building" means a building that is primarily
occupied by offices or agencies of a unit of local government or by
a public care institution.
   (  l  ) "Project" means a purpose for which an allocation
may be requested and made under this chapter. Those purposes shall
include energy audits, energy conservation and operating procedures,
and energy conservation measures in existing and planned buildings
and facilities, energy conservation projects, and technical
assistance programs.
   (m) "Public care institution" means a public or nonprofit
institution that owns:
   (1) A long-term care institution.
   (2) A rehabilitation institution.
   (3) An institution for the provision of public health services,
including related publicly owned services such as laboratories,
clinics, and administrative offices operated in connection with the
institution.
   (4) A residential child care center.
   (n) "Public or nonprofit institution" means an institution owned
and operated by:
   (1) The state, a political subdivision of the state, or an agency
or instrumentality of either.
   (2) An organization exempt from income tax under Section 501(c)(3)
of the Internal Revenue Code of 1954.
   (3) In the case of public care institutions, an organization also
exempt from income tax under Section 501(c)(4) of the Internal
Revenue Code of 1954.
   (o) "School" means a public or nonprofit institution, including a
local educational agency, which:
   (1) Provides, and is legally authorized to provide, elementary
education or secondary education, or both, on a day or residential
basis.
   (2) Provides, and is legally authorized to provide, a program of
education beyond secondary education, on a day or residential basis
and meets all of the following requirements:
   (A) Admits as students only persons having a certificate of
graduation from a school providing secondary education, or the
recognized equivalent of that certificate.
   (B) Is accredited by a nationally recognized accrediting agency or
association.
   (C) Provides an education program for which it awards a bachelor's
degree or higher degree or provides not less than a two-year program
that is acceptable for full credit toward a degree at any
institution that meets the requirements of subparagraphs (A) and (B)
and provides that program.
   (3) Provides not less than a one-year program of training to
prepare students for gainful employment in a recognized occupation
and that meets the provisions of paragraph (2).
   (p) "School building" means a building housing classrooms,
laboratories, dormitories, athletic facilities, or related facilities
operated in connection with a school.
   (q) "Technical assistance costs" means costs incurred for the use
of existing personnel or the temporary employment of other qualified
personnel, or both, necessary for providing technical assistance.
   (r) "Technical assistance program" means assistance to schools,
hospitals, local government, and public care institutions and
includes, but is not limited to:
   (1) Conducting specialized studies identifying and specifying
energy savings and related cost savings that are likely to be
realized as a result of:
   (A) Modification of maintenance and operating procedures in a
building or facility, in addition to those modifications implemented
after the preliminary energy audit, or
   (B) Acquisition and installation of one or more specified energy
conservation measures in the building or facility, or as a result of
both.
   (C) New construction activities.
   (2) Planning of specific remodeling, renovation, repair,
replacement, or insulation projects related to the installation of
energy conservation measures in the building or facility.
   (3) Developing and evaluating alternative project implementation
methods and proposals.
   (s) "Unit of local government" means a unit of general purpose
government below the state, a special district, or any combination of
that unit and special district formed for the joint exercise of
power.
  SEC. 2.  Section 25412.5 is added to the Public Resources Code, to
read:
   25412.5.   (a)    The commission shall take
steps to  perform loan solicitations in a manner that
encourages   do all of the following: 
   (1)     Solicit loan applications to
encourage  an equitable distribution of loans 
statewide, awards   statewide. 
    (2)     Award loans  in regions with
high summer peak loads  , with high heating costs,  or that
have electrical or natural gas system distribution 
constraints, and places   constraints. 
    (3)     Place  an emphasis on offering
these loans in disadvantaged communities.
  SEC. 3.  Section 25415 of the Public Resources Code is amended to
read:
   25415.  (a) Each eligible institution to which an allocation has
been made under this chapter shall repay the principal amount of the
allocation, plus interest, in not more than 30 equal semiannual
payments, as determined by the commission. Loan repayments shall be
made in accordance with a schedule established by the commission. The
repayment period may not exceed the life of the equipment, as
determined by the commission or the lease term of the building in
which the energy conservation measures will be installed.
   (b) Notwithstanding any other provision of law, the commission
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not less than 1
percent per annum.
   (c) The governing body of each eligible institution shall annually
budget an amount at least sufficient to make the semiannual payments
required in this section. The amount shall not be raised by the levy
of additional taxes but shall instead be obtained by a savings in
energy costs or other sources.
  SEC. 4.  Section 25421 of the Public Resources Code is amended to
read:
   25421.  (a) Except as provided in subdivision (b), this chapter
shall remain in effect only until January 1, 2028, and as of that
date is repealed, unless a later enacted statute, which is enacted
before January 1, 2028, deletes or extends that date.
   (b) Except as specified in subdivisions (c) and (d), all loans
outstanding as of January 1, 2028, shall continue to be repaid on a
semiannual basis, as specified in Section 25415, until paid in full.
All unexpended funds in the State Energy Conservation Assistance
Account on January 1, 2028, and thereafter shall revert to the
General Fund.
   (c) To the extent required under applicable bond obligations,
unexpended funds from the proceeds of bonds sold pursuant to Section
25417.5 that remain in the State Energy Conservation Assistance
Account on January 1, 2028, shall remain in the account. These funds
shall be expended pursuant to the applicable requirements for bond
proceeds. Once all applicable bond obligations have been satisfied,
unexpended funds shall revert to the General Fund.
   (d) Unexpended funds from the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) remaining in the State
Energy Conservation Assistance Account on January 1, 2028, shall
revert to the Federal Trust Fund.
  SEC. 5.  Section 25442.8 is added to the Public Resources Code, to
read:
   25442.8.   (a)    The commission shall take
steps to  provide loans in a manner that encourages 
 do all of the following: 
    (1)     Solicit loan applications to
encourage  an equitable distribution of loans 
statewide, awards   statewide. 
    (2)     Award loans  in regions with
high summer peak loads  , with high heating costs,  or that
have electrical or natural gas system  distribution
constraints, and places   distribution. 
    (3)     Place  an emphasis on offering
these loans in disadvantaged communities.
  SEC. 6.  Section 25443 of the Public Resources Code is amended to
read:
   25443.  (a) Principal and interest payments on loans under this
article shall be returned to the commission and shall be used to make
additional loans to local jurisdictions pursuant to Section 25442 or
to provide financial assistance to local jurisdictions pursuant to
Section 25441.
   (b) Notwithstanding any other provision of law, the commission
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not less than 1
percent per annum.
  SEC. 7.  Section 25449.4 of the Public Resources Code is amended to
read:
   25449.4.  (a) Except as provided in subdivision (b), this chapter
shall remain in effect until January 1, 2028, and as of that date is
repealed, unless a later enacted statute which is enacted before
January 1, 2028, deletes or extends that date.
   (b) All loans outstanding as of January 1, 2028, shall continue to
be repaid in accordance with a schedule established by the
commission pursuant to Section 25442.7, until paid in full. All
unexpended funds in the Local Jurisdiction Energy Assistance Account
on January 1, 2028, and thereafter, except to the extent that those
funds are encumbered pursuant to Section 25443.5, shall be deposited
in the Petroleum Violation Escrow Account and be available for the
purposes for which federal oil overcharge funds are available
pursuant to court judgment or federal agency order. 
  SEC. 8.    Section 26142 of the Public Resources
Code is amended to read:
   26142.  (a) Notwithstanding Section 26140, twenty-five million
dollars ($25,000,000) of the unencumbered balance of the fifty
million dollars ($50,000,000) that was appropriated to the authority
pursuant to Section 26140 and is in the Renewable Resource Trust Fund
is hereby appropriated to the Energy Conservation Assistance Account
established pursuant to Section 25416.
   (b) Notwithstanding Section 25421, any unexpended funds
appropriated pursuant to subdivision (a) remaining in the Energy
Conservation Assistance Account on and after January 1, 2028, except
to the extent those funds are encumbered pursuant to Section 25417.5,
shall be available for appropriation by the Legislature for the
benefit of ratepayers from whom the moneys from the Renewable
Resource Trust Fund are collected.