26004. (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
(b) The authority shall consist of five members, as follows:
(1) The Director of Finance.
(2) The Chairperson of the State Energy Resources Conservation and
Development Commission.
(3) The President of the Public Utilities Commission.
(4) The Controller.
(5) The Treasurer, who shall serve as the chairperson of the
authority.
(c) The members listed in paragraphs (1) to (5), inclusive, of
subdivision (b) may each designate a deputy or clerk in his or her
agency to act for and represent the member at all meetings of the
authority.
(d) The first meeting of the authority shall be convened by the
Treasurer.
26005. All members of the authority shall serve thereon without
compensation as members of the authority.
26006. The provisions of this division shall be administered by the
authority which shall have and is hereby vested with all powers
reasonably necessary to carry out the powers and responsibilities
expressly granted or imposed upon it under this division.
26007. The authority shall maintain an office in the City of
Sacramento.
26008. The authority may employ an executive director and any other
persons as are necessary to enable it properly to perform the duties
imposed upon it by this division. The executive director shall serve
at the pleasure of the authority and shall receive such compensation
as shall be fixed by the authority. The authority may, by
resolution, delegate to one or more of its members, its executive
director, or any other official or employee of the authority any
powers and duties that it may deem proper, including, but not limited
to, the power to enter into contracts on behalf of the authority.
26009. (a) The authority shall, in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, adopt all necessary rules and regulations to
carry out this division.
(b) The authority may call upon any board or department of the
state government for aid and assistance in the preparation of plans
and specifications and in the development of technology necessary to
effectively promote the development and utilization of alternative
energy sources and the development and commercialization of advanced
transportation technologies.
26010. (a) The Attorney General shall be the legal counsel for the
authority, but with the approval of the Attorney General, the
authority may employ such legal counsel as in its judgment is
necessary or advisable to enable it to carry out the duties and
functions imposed upon it by this division, including the employment
of such bond counsel as may be deemed advisable in connection with
the issuance and sale of bonds.
(b) The Director of Finance shall be the treasurer of the
authority.
26011. The authority is authorized and empowered:
(a) To adopt an official seal.
(b) To sue and be sued in its own name.
(c) To issue bonds, notes, bond anticipation notes, and other
obligations of the authority, including, at the option of the
authority, obligations bearing interest that is taxable for purposes
of federal income taxation, for any of its purposes and to fund or
refund the same, all as provided in this division.
(d) To determine the location and character of a project to be
financed under the provisions of this division, to lend financial
assistance to a participating party, to enter into loan agreements
with a participating party for the financing of a project including
creating a lien or security interest in the property, to construct,
reconstruct, renovate, replace, lease, as lessor or lessee, and
regulate the same, and to enter into contracts for the sale of a
project, including installment sales or sales under conditional sales
contracts.
(e) To fix fees and charges for projects, and interest rates with
respect to loans for projects, and to revise from time to time the
fees and charges and interest rates, and to collect rates, rents,
fees, and charges for the use of, and for a facility or service
furnished, or to be furnished, by a project or part of the project
and to contract with a person, partnership, association, corporation,
or public agency with respect to the project, and to fix the terms
and conditions upon which a project may be sold or disposed of,
whether upon installment sales contracts or otherwise.
(f) To employ and fix the compensation of bond counsel, financial
consultants, and advisers as may be necessary in its judgment in
connection with the issuance and sale of any bonds, notes, bond
anticipation notes, or other obligations of the authority; to
contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may be necessary in the
judgment of the authority for the successful development of a
project; and to pay the reasonable costs of consulting engineers,
architects, accountants, and construction experts employed by a
participating party if, in the judgment of the authority, the
services are necessary to the successful development of a project,
and the services are not obtainable from a state agency.
(g) To purchase alternative source energy or projects from a
person or entity for sale to a participating party, or to make a loan
to a participating party to purchase alternative source energy or
projects, or to purchase from a person or entity that has contracted
to sell alternative source energy to a participating party the right
to receive purchase payments and related rights under that contract
or any related contracts. Notwithstanding any other applicable law,
the authority and a public agency, for purposes of a program or
financing, shall have the power to enter into contractual
arrangements and related agreements or instruments, including,
without limitation, a prepayment purchase contract, lease, loan,
construction, security, operation and maintenance, or other agreement
or instrument, with the authority or with a participating party,
upon the terms and subject to the conditions that may be necessary or
convenient to accomplish the purposes of this subdivision. The
authority shall only enter into a prepayment contract with a
participating party for energy derived from an alternative source to
the extent the prepayment is for energy intended to primarily offset
part or all of the authority's or a participating party's own
electrical requirements.
(h) To purchase, with proceeds of its bonds or its revenue, bonds
issued by a public agency described in paragraph (2) of subdivision
(f) of Section 26003 at a public or negotiated sale. Bonds purchased
pursuant to this subdivision may be held by the authority or sold to
public or private purchasers at public or negotiated sales, in whole
or in part, separately or together with other bonds issued by the
authority.
(i) To do all things generally necessary or convenient to carry
out the purposes of this division.
26011.5. The authority, in consultation with the State Energy
Resources Conservation and Development Commission, shall establish
criteria for the selection of projects to receive financing
assistance from the authority. In the selection of projects, the
authority shall, in accordance with the legislative intent, provide
financial assistance under this division in a manner consistent with
sound financial practice. In developing project selection criteria,
the authority shall consider, but not be limited to, all of the
following:
(a) The technological feasibility of the projects.
(b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
(c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
(d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
(e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.
26011.6. (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
(b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 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 3.5, 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. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
(c) The authority shall consult with the State Energy Resources
Conservation and Development Commission regarding the financing of
projects to avoid duplication of other renewable energy projects.
(d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
(e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
26011.8. (a) The purpose of this section is 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. In furtherance of this purpose, the
authority may approve a project for financial assistance in the form
of the sales and use tax exclusion established in Section 6010.8 of
the Revenue and Taxation Code.
(b) (1) For purposes of this section, "project" means a project as
defined in paragraph (2) of subdivision (g) of Section 26003.
(2) For purposes of this section, "alternative sources" also
includes advanced electric distributive generation technology as
defined in Section 379.8 of the Public Utilities Code or energy
storage technologies and their component materials.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by any federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j), and without regard to the
actual date of any transaction between a participating party and the
authority, any project as defined in subdivision (g) of Section 26003
approved by the authority by resolution for the sales and use tax
exclusion pursuant to Section 6010.8 of the Revenue and Taxation Code
prior to the effective date of this section, shall not be subject to
this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) Once the exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section exceed one hundred million dollars
($100,000,000) annually, the authority shall provide a 20-day notice
to the Legislature prior to making additional approvals pursuant to
this section.
(i) The authority shall make every effort to expedite the
operation of this section, and shall adopt regulations for purposes
of implementing the section 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 3.5, 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.
(j) This section shall remain in effect only until January 1,
2021, and as of that date is repealed. The sale or purchase of
tangible personal property of a project approved prior to January 1,
2021, shall continue to be excluded from sales and use taxes pursuant
to Section 6010.8 of the Revenue and Taxation Code for the period of
time set forth in the authority's resolution approving the project
pursuant to this section.
26012. All expenses incurred in carrying out the provisions of this
division shall be payable solely from funds provided under the
authority of this division and no liability or obligation shall be
imposed upon the State of California and, except as provided in
Section 26027, none shall be incurred by the authority beyond the
extent to which moneys shall have been provided under the provisions
of this division. Under no circumstances shall the authority create
any debt, liability, or obligation on the part of the State of
California payable from any source whatsoever other than the moneys
provided under the provisions of this division.
26013. (a) All projects shall be constructed or completed subject
to the rules and regulations of the authority.
(b) In addition to the requirements of subdivision (a), all
projects involving construction or completion of hydroelectric
facilities shall comply with all state laws pertaining to the
control, appropriation, use, and distribution of water, including,
but not limited to, the obtaining of applicable licenses and permits,
as a condition of receiving any financing under this division. For
these purposes, no financial assistance shall be provided by the
authority for construction or completion of hydroelectric facilities
unless the participating party provides proof of either of the
following:
(1) Certification from the State Water Resources Control Board
that a water right permit has been issued for the operation of the
hydroelectric facility. No certification shall be issued unless, in
applying for the certification, the applicant agrees in writing to
comply with all terms and conditions of the permit.
(2) Certification from the State Water Resources Control Board
that, in the opinion of the board, the private energy producer
possesses riparian rights or other water rights which authorize the
operation of the hydroelectric facility.
(c) The authority may acquire, by deed, purchase, lease, contract,
gift, devise, or otherwise, any real or personal property,
structures, rights, rights-of-way, franchises, easements, and other
interests in lands located within this state necessary or convenient
for the construction or operation of a project, upon terms and
conditions it deems advisable, and to lease, sell, or dispose of any
property or interest in any manner necessary or desirable to carry
out this division. The authority may not exercise the power of
eminent domain under this division or any other provision of law.
26014. When the principal of and interest on bonds of the authority
issued to finance the cost of a particular project for a
participating party, including any refunding bonds issued to refund
and refinance such bonds, shall have been fully paid and retired or
when adequate provision shall have been made for the payment and
retirement of the same, and all other conditions of the resolution,
indenture, or agreement authorizing and securing the same shall have
been satisfied and the lien of such resolution, indenture, or
agreement shall have been released in accordance with the provisions
thereof, the authority is authorized, upon such terms and conditions
as may be prescribed by the authority, to execute such deeds and
conveyances as are necessary or required to convey title to such
project to such participating party.
26015. (a) The authority, or the executive secretary of the
authority, if authorized to do so by resolution of the authority,
shall take official action towards the issuance of bonds with respect
to any participating party at the next meeting of the authority
occurring more than 30 days following receipt of such application or
if by the executive secretary within 45 days of such receipt. The
executive secretary may be authorized to take such action in a
resolution of general authority. Official action towards the issuance
of bonds may reserve the right of the authority to further review an
application for financing and to consider the terms thereof prior to
the issuance of bonds therefor.
(b) The authority shall take final action to approve or disapprove
of the issuance of bonds or notes to lend financial assistance to
participating parties within 60 days of the receipt by the authority
of a request from such participating party for such action. Any such
request by a participating party for such final action shall be
accompanied by evidence of fulfillment of any and all conditions to
the issuance of such bonds or notes imposed at the time the first
action towards the issuance thereof was taken by the authority and by
copies of forms of all principal legal documents to be approved by
the authority.
(c) The authority may give final approval for the issuance of such
bonds or notes upon such terms as it reasonably deems necessary or
desirable.
(d) Any action under this section shall be at the sole discretion
of the authority.
26016. The authority shall provide maximum opportunity for use of
its financing by individuals and small businesses or corporations by
providing information, assistance, and coordination to facilitate
financing for small projects. Small projects under one million
dollars ($1,000,000) cost or one megawatt size or both such cost and
size may be grouped together and qualify as one bond sale. In the
event that a small business entity applying for funding under this
section is not approved by the authority, the authority shall assist
the small business entity to locate a favorable funding source
through a corporation qualified under the Business and Industrial
Development Corporations Law (commencing with Section 31000 of the
Financial Code), or through any federal, state, or private funding
source.
26016.5. (a) The Legislature finds and declares that small
businesses have had difficulty establishing adequate security for
bonds issued by the authority in their behalf, and that establishing
common reserve funds will help to provide reasonable security for
such bonds and will help to make the authority's services available
to various small businesses which are presently unable to use them.
(b) For the purpose of establishing and maintaining such common
reserve funds as it deems necessary or desirable to secure its bonds
or any issuance thereof, the authority, pursuant to its contracts
with participating parties, may levy fees or other charges on, or
require deposits from, participating parties receiving financing for
projects under this division. Prior to levying any such fees or
charges or requiring such deposits, the authority shall adopt
regulations for the operation of the common reserve funds and
governing the amounts and any payment schedule for such fees,
charges, or deposits.
(c) Subject to any prior contractual obligations to any of its
bondholders, the authority may establish one or more common reserve
funds for any or all of its bonds. The liability of any such common
reserve fund, with respect to any single issue of bonds of the
authority, may not exceed 25 percent of the sum of the bonds of such
issue.
(d) Each common reserve fund established pursuant to this section
shall be deposited in a special account which shall be established by
the Controller. Notwithstanding any other provision of law, all
interest or other increment earned by investment or deposit of moneys
in such an account pursuant to any provision of Part 2 (commencing
with Section 16300) of Division 4 of Title 2 of the Government Code
or pursuant to any other provision of law shall be credited to, and
deposited in, the account.
26017. The authority, no later than March 1 of each year, shall
submit to the Legislature a report of its activities for the
preceding calendar year ended December 31. Such report shall include
(1) a listing of the applications received, (2) a listing of the
applications accepted for financing, (3) a specification of bonds
sold, interest rates thereon, and whether bond sales were pursuant to
public bid or were negotiated, (4) a specification of the amount of
bonds authorized but currently unsold, (5) a projection of the
authority's needs and requirements for the coming year, and (6) a
report of revenues and expenditures for the preceding fiscal year.
26004. (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
(b) The authority shall consist of five members, as follows:
(1) The Director of Finance.
(2) The Chairperson of the State Energy Resources Conservation and
Development Commission.
(3) The President of the Public Utilities Commission.
(4) The Controller.
(5) The Treasurer, who shall serve as the chairperson of the
authority.
(c) The members listed in paragraphs (1) to (5), inclusive, of
subdivision (b) may each designate a deputy or clerk in his or her
agency to act for and represent the member at all meetings of the
authority.
(d) The first meeting of the authority shall be convened by the
Treasurer.
26005. All members of the authority shall serve thereon without
compensation as members of the authority.
26006. The provisions of this division shall be administered by the
authority which shall have and is hereby vested with all powers
reasonably necessary to carry out the powers and responsibilities
expressly granted or imposed upon it under this division.
26007. The authority shall maintain an office in the City of
Sacramento.
26008. The authority may employ an executive director and any other
persons as are necessary to enable it properly to perform the duties
imposed upon it by this division. The executive director shall serve
at the pleasure of the authority and shall receive such compensation
as shall be fixed by the authority. The authority may, by
resolution, delegate to one or more of its members, its executive
director, or any other official or employee of the authority any
powers and duties that it may deem proper, including, but not limited
to, the power to enter into contracts on behalf of the authority.
26009. (a) The authority shall, in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, adopt all necessary rules and regulations to
carry out this division.
(b) The authority may call upon any board or department of the
state government for aid and assistance in the preparation of plans
and specifications and in the development of technology necessary to
effectively promote the development and utilization of alternative
energy sources and the development and commercialization of advanced
transportation technologies.
26010. (a) The Attorney General shall be the legal counsel for the
authority, but with the approval of the Attorney General, the
authority may employ such legal counsel as in its judgment is
necessary or advisable to enable it to carry out the duties and
functions imposed upon it by this division, including the employment
of such bond counsel as may be deemed advisable in connection with
the issuance and sale of bonds.
(b) The Director of Finance shall be the treasurer of the
authority.
26011. The authority is authorized and empowered:
(a) To adopt an official seal.
(b) To sue and be sued in its own name.
(c) To issue bonds, notes, bond anticipation notes, and other
obligations of the authority, including, at the option of the
authority, obligations bearing interest that is taxable for purposes
of federal income taxation, for any of its purposes and to fund or
refund the same, all as provided in this division.
(d) To determine the location and character of a project to be
financed under the provisions of this division, to lend financial
assistance to a participating party, to enter into loan agreements
with a participating party for the financing of a project including
creating a lien or security interest in the property, to construct,
reconstruct, renovate, replace, lease, as lessor or lessee, and
regulate the same, and to enter into contracts for the sale of a
project, including installment sales or sales under conditional sales
contracts.
(e) To fix fees and charges for projects, and interest rates with
respect to loans for projects, and to revise from time to time the
fees and charges and interest rates, and to collect rates, rents,
fees, and charges for the use of, and for a facility or service
furnished, or to be furnished, by a project or part of the project
and to contract with a person, partnership, association, corporation,
or public agency with respect to the project, and to fix the terms
and conditions upon which a project may be sold or disposed of,
whether upon installment sales contracts or otherwise.
(f) To employ and fix the compensation of bond counsel, financial
consultants, and advisers as may be necessary in its judgment in
connection with the issuance and sale of any bonds, notes, bond
anticipation notes, or other obligations of the authority; to
contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may be necessary in the
judgment of the authority for the successful development of a
project; and to pay the reasonable costs of consulting engineers,
architects, accountants, and construction experts employed by a
participating party if, in the judgment of the authority, the
services are necessary to the successful development of a project,
and the services are not obtainable from a state agency.
(g) To purchase alternative source energy or projects from a
person or entity for sale to a participating party, or to make a loan
to a participating party to purchase alternative source energy or
projects, or to purchase from a person or entity that has contracted
to sell alternative source energy to a participating party the right
to receive purchase payments and related rights under that contract
or any related contracts. Notwithstanding any other applicable law,
the authority and a public agency, for purposes of a program or
financing, shall have the power to enter into contractual
arrangements and related agreements or instruments, including,
without limitation, a prepayment purchase contract, lease, loan,
construction, security, operation and maintenance, or other agreement
or instrument, with the authority or with a participating party,
upon the terms and subject to the conditions that may be necessary or
convenient to accomplish the purposes of this subdivision. The
authority shall only enter into a prepayment contract with a
participating party for energy derived from an alternative source to
the extent the prepayment is for energy intended to primarily offset
part or all of the authority's or a participating party's own
electrical requirements.
(h) To purchase, with proceeds of its bonds or its revenue, bonds
issued by a public agency described in paragraph (2) of subdivision
(f) of Section 26003 at a public or negotiated sale. Bonds purchased
pursuant to this subdivision may be held by the authority or sold to
public or private purchasers at public or negotiated sales, in whole
or in part, separately or together with other bonds issued by the
authority.
(i) To do all things generally necessary or convenient to carry
out the purposes of this division.
26011.5. The authority, in consultation with the State Energy
Resources Conservation and Development Commission, shall establish
criteria for the selection of projects to receive financing
assistance from the authority. In the selection of projects, the
authority shall, in accordance with the legislative intent, provide
financial assistance under this division in a manner consistent with
sound financial practice. In developing project selection criteria,
the authority shall consider, but not be limited to, all of the
following:
(a) The technological feasibility of the projects.
(b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
(c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
(d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
(e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.
26011.6. (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
(b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 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 3.5, 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. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
(c) The authority shall consult with the State Energy Resources
Conservation and Development Commission regarding the financing of
projects to avoid duplication of other renewable energy projects.
(d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
(e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
26011.8. (a) The purpose of this section is 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. In furtherance of this purpose, the
authority may approve a project for financial assistance in the form
of the sales and use tax exclusion established in Section 6010.8 of
the Revenue and Taxation Code.
(b) (1) For purposes of this section, "project" means a project as
defined in paragraph (2) of subdivision (g) of Section 26003.
(2) For purposes of this section, "alternative sources" also
includes advanced electric distributive generation technology as
defined in Section 379.8 of the Public Utilities Code or energy
storage technologies and their component materials.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by any federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j), and without regard to the
actual date of any transaction between a participating party and the
authority, any project as defined in subdivision (g) of Section 26003
approved by the authority by resolution for the sales and use tax
exclusion pursuant to Section 6010.8 of the Revenue and Taxation Code
prior to the effective date of this section, shall not be subject to
this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) Once the exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section exceed one hundred million dollars
($100,000,000) annually, the authority shall provide a 20-day notice
to the Legislature prior to making additional approvals pursuant to
this section.
(i) The authority shall make every effort to expedite the
operation of this section, and shall adopt regulations for purposes
of implementing the section 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 3.5, 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.
(j) This section shall remain in effect only until January 1,
2021, and as of that date is repealed. The sale or purchase of
tangible personal property of a project approved prior to January 1,
2021, shall continue to be excluded from sales and use taxes pursuant
to Section 6010.8 of the Revenue and Taxation Code for the period of
time set forth in the authority's resolution approving the project
pursuant to this section.
26012. All expenses incurred in carrying out the provisions of this
division shall be payable solely from funds provided under the
authority of this division and no liability or obligation shall be
imposed upon the State of California and, except as provided in
Section 26027, none shall be incurred by the authority beyond the
extent to which moneys shall have been provided under the provisions
of this division. Under no circumstances shall the authority create
any debt, liability, or obligation on the part of the State of
California payable from any source whatsoever other than the moneys
provided under the provisions of this division.
26013. (a) All projects shall be constructed or completed subject
to the rules and regulations of the authority.
(b) In addition to the requirements of subdivision (a), all
projects involving construction or completion of hydroelectric
facilities shall comply with all state laws pertaining to the
control, appropriation, use, and distribution of water, including,
but not limited to, the obtaining of applicable licenses and permits,
as a condition of receiving any financing under this division. For
these purposes, no financial assistance shall be provided by the
authority for construction or completion of hydroelectric facilities
unless the participating party provides proof of either of the
following:
(1) Certification from the State Water Resources Control Board
that a water right permit has been issued for the operation of the
hydroelectric facility. No certification shall be issued unless, in
applying for the certification, the applicant agrees in writing to
comply with all terms and conditions of the permit.
(2) Certification from the State Water Resources Control Board
that, in the opinion of the board, the private energy producer
possesses riparian rights or other water rights which authorize the
operation of the hydroelectric facility.
(c) The authority may acquire, by deed, purchase, lease, contract,
gift, devise, or otherwise, any real or personal property,
structures, rights, rights-of-way, franchises, easements, and other
interests in lands located within this state necessary or convenient
for the construction or operation of a project, upon terms and
conditions it deems advisable, and to lease, sell, or dispose of any
property or interest in any manner necessary or desirable to carry
out this division. The authority may not exercise the power of
eminent domain under this division or any other provision of law.
26014. When the principal of and interest on bonds of the authority
issued to finance the cost of a particular project for a
participating party, including any refunding bonds issued to refund
and refinance such bonds, shall have been fully paid and retired or
when adequate provision shall have been made for the payment and
retirement of the same, and all other conditions of the resolution,
indenture, or agreement authorizing and securing the same shall have
been satisfied and the lien of such resolution, indenture, or
agreement shall have been released in accordance with the provisions
thereof, the authority is authorized, upon such terms and conditions
as may be prescribed by the authority, to execute such deeds and
conveyances as are necessary or required to convey title to such
project to such participating party.
26015. (a) The authority, or the executive secretary of the
authority, if authorized to do so by resolution of the authority,
shall take official action towards the issuance of bonds with respect
to any participating party at the next meeting of the authority
occurring more than 30 days following receipt of such application or
if by the executive secretary within 45 days of such receipt. The
executive secretary may be authorized to take such action in a
resolution of general authority. Official action towards the issuance
of bonds may reserve the right of the authority to further review an
application for financing and to consider the terms thereof prior to
the issuance of bonds therefor.
(b) The authority shall take final action to approve or disapprove
of the issuance of bonds or notes to lend financial assistance to
participating parties within 60 days of the receipt by the authority
of a request from such participating party for such action. Any such
request by a participating party for such final action shall be
accompanied by evidence of fulfillment of any and all conditions to
the issuance of such bonds or notes imposed at the time the first
action towards the issuance thereof was taken by the authority and by
copies of forms of all principal legal documents to be approved by
the authority.
(c) The authority may give final approval for the issuance of such
bonds or notes upon such terms as it reasonably deems necessary or
desirable.
(d) Any action under this section shall be at the sole discretion
of the authority.
26016. The authority shall provide maximum opportunity for use of
its financing by individuals and small businesses or corporations by
providing information, assistance, and coordination to facilitate
financing for small projects. Small projects under one million
dollars ($1,000,000) cost or one megawatt size or both such cost and
size may be grouped together and qualify as one bond sale. In the
event that a small business entity applying for funding under this
section is not approved by the authority, the authority shall assist
the small business entity to locate a favorable funding source
through a corporation qualified under the Business and Industrial
Development Corporations Law (commencing with Section 31000 of the
Financial Code), or through any federal, state, or private funding
source.
26016.5. (a) The Legislature finds and declares that small
businesses have had difficulty establishing adequate security for
bonds issued by the authority in their behalf, and that establishing
common reserve funds will help to provide reasonable security for
such bonds and will help to make the authority's services available
to various small businesses which are presently unable to use them.
(b) For the purpose of establishing and maintaining such common
reserve funds as it deems necessary or desirable to secure its bonds
or any issuance thereof, the authority, pursuant to its contracts
with participating parties, may levy fees or other charges on, or
require deposits from, participating parties receiving financing for
projects under this division. Prior to levying any such fees or
charges or requiring such deposits, the authority shall adopt
regulations for the operation of the common reserve funds and
governing the amounts and any payment schedule for such fees,
charges, or deposits.
(c) Subject to any prior contractual obligations to any of its
bondholders, the authority may establish one or more common reserve
funds for any or all of its bonds. The liability of any such common
reserve fund, with respect to any single issue of bonds of the
authority, may not exceed 25 percent of the sum of the bonds of such
issue.
(d) Each common reserve fund established pursuant to this section
shall be deposited in a special account which shall be established by
the Controller. Notwithstanding any other provision of law, all
interest or other increment earned by investment or deposit of moneys
in such an account pursuant to any provision of Part 2 (commencing
with Section 16300) of Division 4 of Title 2 of the Government Code
or pursuant to any other provision of law shall be credited to, and
deposited in, the account.
26017. The authority, no later than March 1 of each year, shall
submit to the Legislature a report of its activities for the
preceding calendar year ended December 31. Such report shall include
(1) a listing of the applications received, (2) a listing of the
applications accepted for financing, (3) a specification of bonds
sold, interest rates thereon, and whether bond sales were pursuant to
public bid or were negotiated, (4) a specification of the amount of
bonds authorized but currently unsold, (5) a projection of the
authority's needs and requirements for the coming year, and (6) a
report of revenues and expenditures for the preceding fiscal year.
26004. (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
(b) The authority shall consist of five members, as follows:
(1) The Director of Finance.
(2) The Chairperson of the State Energy Resources Conservation and
Development Commission.
(3) The President of the Public Utilities Commission.
(4) The Controller.
(5) The Treasurer, who shall serve as the chairperson of the
authority.
(c) The members listed in paragraphs (1) to (5), inclusive, of
subdivision (b) may each designate a deputy or clerk in his or her
agency to act for and represent the member at all meetings of the
authority.
(d) The first meeting of the authority shall be convened by the
Treasurer.
26005. All members of the authority shall serve thereon without
compensation as members of the authority.
26006. The provisions of this division shall be administered by the
authority which shall have and is hereby vested with all powers
reasonably necessary to carry out the powers and responsibilities
expressly granted or imposed upon it under this division.
26007. The authority shall maintain an office in the City of
Sacramento.
26008. The authority may employ an executive director and any other
persons as are necessary to enable it properly to perform the duties
imposed upon it by this division. The executive director shall serve
at the pleasure of the authority and shall receive such compensation
as shall be fixed by the authority. The authority may, by
resolution, delegate to one or more of its members, its executive
director, or any other official or employee of the authority any
powers and duties that it may deem proper, including, but not limited
to, the power to enter into contracts on behalf of the authority.
26009. (a) The authority shall, in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, adopt all necessary rules and regulations to
carry out this division.
(b) The authority may call upon any board or department of the
state government for aid and assistance in the preparation of plans
and specifications and in the development of technology necessary to
effectively promote the development and utilization of alternative
energy sources and the development and commercialization of advanced
transportation technologies.
26010. (a) The Attorney General shall be the legal counsel for the
authority, but with the approval of the Attorney General, the
authority may employ such legal counsel as in its judgment is
necessary or advisable to enable it to carry out the duties and
functions imposed upon it by this division, including the employment
of such bond counsel as may be deemed advisable in connection with
the issuance and sale of bonds.
(b) The Director of Finance shall be the treasurer of the
authority.
26011. The authority is authorized and empowered:
(a) To adopt an official seal.
(b) To sue and be sued in its own name.
(c) To issue bonds, notes, bond anticipation notes, and other
obligations of the authority, including, at the option of the
authority, obligations bearing interest that is taxable for purposes
of federal income taxation, for any of its purposes and to fund or
refund the same, all as provided in this division.
(d) To determine the location and character of a project to be
financed under the provisions of this division, to lend financial
assistance to a participating party, to enter into loan agreements
with a participating party for the financing of a project including
creating a lien or security interest in the property, to construct,
reconstruct, renovate, replace, lease, as lessor or lessee, and
regulate the same, and to enter into contracts for the sale of a
project, including installment sales or sales under conditional sales
contracts.
(e) To fix fees and charges for projects, and interest rates with
respect to loans for projects, and to revise from time to time the
fees and charges and interest rates, and to collect rates, rents,
fees, and charges for the use of, and for a facility or service
furnished, or to be furnished, by a project or part of the project
and to contract with a person, partnership, association, corporation,
or public agency with respect to the project, and to fix the terms
and conditions upon which a project may be sold or disposed of,
whether upon installment sales contracts or otherwise.
(f) To employ and fix the compensation of bond counsel, financial
consultants, and advisers as may be necessary in its judgment in
connection with the issuance and sale of any bonds, notes, bond
anticipation notes, or other obligations of the authority; to
contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may be necessary in the
judgment of the authority for the successful development of a
project; and to pay the reasonable costs of consulting engineers,
architects, accountants, and construction experts employed by a
participating party if, in the judgment of the authority, the
services are necessary to the successful development of a project,
and the services are not obtainable from a state agency.
(g) To purchase alternative source energy or projects from a
person or entity for sale to a participating party, or to make a loan
to a participating party to purchase alternative source energy or
projects, or to purchase from a person or entity that has contracted
to sell alternative source energy to a participating party the right
to receive purchase payments and related rights under that contract
or any related contracts. Notwithstanding any other applicable law,
the authority and a public agency, for purposes of a program or
financing, shall have the power to enter into contractual
arrangements and related agreements or instruments, including,
without limitation, a prepayment purchase contract, lease, loan,
construction, security, operation and maintenance, or other agreement
or instrument, with the authority or with a participating party,
upon the terms and subject to the conditions that may be necessary or
convenient to accomplish the purposes of this subdivision. The
authority shall only enter into a prepayment contract with a
participating party for energy derived from an alternative source to
the extent the prepayment is for energy intended to primarily offset
part or all of the authority's or a participating party's own
electrical requirements.
(h) To purchase, with proceeds of its bonds or its revenue, bonds
issued by a public agency described in paragraph (2) of subdivision
(f) of Section 26003 at a public or negotiated sale. Bonds purchased
pursuant to this subdivision may be held by the authority or sold to
public or private purchasers at public or negotiated sales, in whole
or in part, separately or together with other bonds issued by the
authority.
(i) To do all things generally necessary or convenient to carry
out the purposes of this division.
26011.5. The authority, in consultation with the State Energy
Resources Conservation and Development Commission, shall establish
criteria for the selection of projects to receive financing
assistance from the authority. In the selection of projects, the
authority shall, in accordance with the legislative intent, provide
financial assistance under this division in a manner consistent with
sound financial practice. In developing project selection criteria,
the authority shall consider, but not be limited to, all of the
following:
(a) The technological feasibility of the projects.
(b) The economic soundness of the projects and a realistic
expectation that all financial obligations can and will be met by the
participating parties.
(c) The contribution that the projects can make to a reduction or
more efficient use of fossil fuels.
(d) The contribution that the project can make toward diversifying
California's energy resources by fostering renewable energy systems
that can substitute, or preferably eliminate, the demand for
conventional energy fuels.
(e) Any other such factors that the authority finds significant in
achieving the purposes and objectives of this division.
26011.6. (a) The authority shall establish a renewable energy
program to provide financial assistance to public power entities,
independent generators, utilities, or businesses manufacturing
components or systems, or both, to generate new and renewable energy
sources, develop clean and efficient distributed generation, and
demonstrate the economic feasibility of new technologies, such as
solar, photovoltaic, wind, and ultralow-emission equipment. The
authority shall give preference to utility-scale projects that can be
rapidly deployed to provide a significant contribution as a
renewable energy supply. The program established pursuant to this
subdivision shall include financial assistance provided pursuant to
subdivision (g) of Section 26011.
(b) The authority shall make every effort to expedite the
operation of renewable energy systems, and shall adopt regulations
for purposes of this section and Section 26011.5 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 3.5, 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. Notwithstanding the 120-day limitation specified in
subdivision (e) of Section 11346.1 of the Government Code, the
regulations shall be repealed 180 days after their effective date,
unless the authority complies with Sections 11346.2 to 11347.3,
inclusive, as provided in subdivision (e) of Section 11346.1 of the
Government Code.
(c) The authority shall consult with the State Energy Resources
Conservation and Development Commission regarding the financing of
projects to avoid duplication of other renewable energy projects.
(d) The authority shall ensure that any financed project shall
offer its power within California on a long-term contract basis.
(e) The authority shall ensure that a financed project is limited
to resources that the authority determines support the state's goals
for the reduction of emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
26011.8. (a) The purpose of this section is 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. In furtherance of this purpose, the
authority may approve a project for financial assistance in the form
of the sales and use tax exclusion established in Section 6010.8 of
the Revenue and Taxation Code.
(b) (1) For purposes of this section, "project" means a project as
defined in paragraph (2) of subdivision (g) of Section 26003.
(2) For purposes of this section, "alternative sources" also
includes advanced electric distributive generation technology as
defined in Section 379.8 of the Public Utilities Code or energy
storage technologies and their component materials.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by any federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j), and without regard to the
actual date of any transaction between a participating party and the
authority, any project as defined in subdivision (g) of Section 26003
approved by the authority by resolution for the sales and use tax
exclusion pursuant to Section 6010.8 of the Revenue and Taxation Code
prior to the effective date of this section, shall not be subject to
this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) Once the exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section exceed one hundred million dollars
($100,000,000) annually, the authority shall provide a 20-day notice
to the Legislature prior to making additional approvals pursuant to
this section.
(i) The authority shall make every effort to expedite the
operation of this section, and shall adopt regulations for purposes
of implementing the section 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 3.5, 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.
(j) This section shall remain in effect only until January 1,
2021, and as of that date is repealed. The sale or purchase of
tangible personal property of a project approved prior to January 1,
2021, shall continue to be excluded from sales and use taxes pursuant
to Section 6010.8 of the Revenue and Taxation Code for the period of
time set forth in the authority's resolution approving the project
pursuant to this section.
26012. All expenses incurred in carrying out the provisions of this
division shall be payable solely from funds provided under the
authority of this division and no liability or obligation shall be
imposed upon the State of California and, except as provided in
Section 26027, none shall be incurred by the authority beyond the
extent to which moneys shall have been provided under the provisions
of this division. Under no circumstances shall the authority create
any debt, liability, or obligation on the part of the State of
California payable from any source whatsoever other than the moneys
provided under the provisions of this division.
26013. (a) All projects shall be constructed or completed subject
to the rules and regulations of the authority.
(b) In addition to the requirements of subdivision (a), all
projects involving construction or completion of hydroelectric
facilities shall comply with all state laws pertaining to the
control, appropriation, use, and distribution of water, including,
but not limited to, the obtaining of applicable licenses and permits,
as a condition of receiving any financing under this division. For
these purposes, no financial assistance shall be provided by the
authority for construction or completion of hydroelectric facilities
unless the participating party provides proof of either of the
following:
(1) Certification from the State Water Resources Control Board
that a water right permit has been issued for the operation of the
hydroelectric facility. No certification shall be issued unless, in
applying for the certification, the applicant agrees in writing to
comply with all terms and conditions of the permit.
(2) Certification from the State Water Resources Control Board
that, in the opinion of the board, the private energy producer
possesses riparian rights or other water rights which authorize the
operation of the hydroelectric facility.
(c) The authority may acquire, by deed, purchase, lease, contract,
gift, devise, or otherwise, any real or personal property,
structures, rights, rights-of-way, franchises, easements, and other
interests in lands located within this state necessary or convenient
for the construction or operation of a project, upon terms and
conditions it deems advisable, and to lease, sell, or dispose of any
property or interest in any manner necessary or desirable to carry
out this division. The authority may not exercise the power of
eminent domain under this division or any other provision of law.
26014. When the principal of and interest on bonds of the authority
issued to finance the cost of a particular project for a
participating party, including any refunding bonds issued to refund
and refinance such bonds, shall have been fully paid and retired or
when adequate provision shall have been made for the payment and
retirement of the same, and all other conditions of the resolution,
indenture, or agreement authorizing and securing the same shall have
been satisfied and the lien of such resolution, indenture, or
agreement shall have been released in accordance with the provisions
thereof, the authority is authorized, upon such terms and conditions
as may be prescribed by the authority, to execute such deeds and
conveyances as are necessary or required to convey title to such
project to such participating party.
26015. (a) The authority, or the executive secretary of the
authority, if authorized to do so by resolution of the authority,
shall take official action towards the issuance of bonds with respect
to any participating party at the next meeting of the authority
occurring more than 30 days following receipt of such application or
if by the executive secretary within 45 days of such receipt. The
executive secretary may be authorized to take such action in a
resolution of general authority. Official action towards the issuance
of bonds may reserve the right of the authority to further review an
application for financing and to consider the terms thereof prior to
the issuance of bonds therefor.
(b) The authority shall take final action to approve or disapprove
of the issuance of bonds or notes to lend financial assistance to
participating parties within 60 days of the receipt by the authority
of a request from such participating party for such action. Any such
request by a participating party for such final action shall be
accompanied by evidence of fulfillment of any and all conditions to
the issuance of such bonds or notes imposed at the time the first
action towards the issuance thereof was taken by the authority and by
copies of forms of all principal legal documents to be approved by
the authority.
(c) The authority may give final approval for the issuance of such
bonds or notes upon such terms as it reasonably deems necessary or
desirable.
(d) Any action under this section shall be at the sole discretion
of the authority.
26016. The authority shall provide maximum opportunity for use of
its financing by individuals and small businesses or corporations by
providing information, assistance, and coordination to facilitate
financing for small projects. Small projects under one million
dollars ($1,000,000) cost or one megawatt size or both such cost and
size may be grouped together and qualify as one bond sale. In the
event that a small business entity applying for funding under this
section is not approved by the authority, the authority shall assist
the small business entity to locate a favorable funding source
through a corporation qualified under the Business and Industrial
Development Corporations Law (commencing with Section 31000 of the
Financial Code), or through any federal, state, or private funding
source.
26016.5. (a) The Legislature finds and declares that small
businesses have had difficulty establishing adequate security for
bonds issued by the authority in their behalf, and that establishing
common reserve funds will help to provide reasonable security for
such bonds and will help to make the authority's services available
to various small businesses which are presently unable to use them.
(b) For the purpose of establishing and maintaining such common
reserve funds as it deems necessary or desirable to secure its bonds
or any issuance thereof, the authority, pursuant to its contracts
with participating parties, may levy fees or other charges on, or
require deposits from, participating parties receiving financing for
projects under this division. Prior to levying any such fees or
charges or requiring such deposits, the authority shall adopt
regulations for the operation of the common reserve funds and
governing the amounts and any payment schedule for such fees,
charges, or deposits.
(c) Subject to any prior contractual obligations to any of its
bondholders, the authority may establish one or more common reserve
funds for any or all of its bonds. The liability of any such common
reserve fund, with respect to any single issue of bonds of the
authority, may not exceed 25 percent of the sum of the bonds of such
issue.
(d) Each common reserve fund established pursuant to this section
shall be deposited in a special account which shall be established by
the Controller. Notwithstanding any other provision of law, all
interest or other increment earned by investment or deposit of moneys
in such an account pursuant to any provision of Part 2 (commencing
with Section 16300) of Division 4 of Title 2 of the Government Code
or pursuant to any other provision of law shall be credited to, and
deposited in, the account.
26017. The authority, no later than March 1 of each year, shall
submit to the Legislature a report of its activities for the
preceding calendar year ended December 31. Such report shall include
(1) a listing of the applications received, (2) a listing of the
applications accepted for financing, (3) a specification of bonds
sold, interest rates thereon, and whether bond sales were pursuant to
public bid or were negotiated, (4) a specification of the amount of
bonds authorized but currently unsold, (5) a projection of the
authority's needs and requirements for the coming year, and (6) a
report of revenues and expenditures for the preceding fiscal year.
