State Codes and Statutes

Statutes > California > Gov > 4217.10-4217.18

GOVERNMENT CODE
SECTION 4217.10-4217.18



4217.10.  To help implement the policy set forth in Section 25008 of
the Public Resources Code, and to extend that policy to facilities
of local governments, public agencies may develop energy
conservation, cogeneration, and alternate energy supply sources at
the facilities of public agencies in accordance with this chapter.




4217.11.  The following terms, whenever used in this chapter, have
the meanings given in this section, except where the context clearly
indicates otherwise:
   (a) "Alternate energy equipment" means equipment for the
production or conversion of energy from alternate sources as its
primary fuel source, such as solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, remote natural gas of less than
one billion cubic feet estimated reserves per mile from an existing
gas gathering line, natural gas containing 850 or fewer British
Thermal Units per standard cubic foot, or any other source of energy,
the efficient use of which will reduce the use of fossil or nuclear
fuels.
   (b) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
   (c) "Conservation measures" means equipment, maintenance, load
management techniques and equipment, or other measures to reduce
energy use or make for a more efficient use of energy.
   (d) "Conservation services" means the electrical, thermal, or
other energy savings resulting from conservation measures, which
shall be treated as a supply of such energy.
   (e) "Energy conservation facility" means alternate energy
equipment, cogeneration equipment, or conservation measures located
in public buildings or on land owned by public agencies.
   (f) "Energy service contract" means a contract entered into by a
public agency with any person, pursuant to which the person will
provide electrical or thermal energy or conservation services to a
public agency from an energy conservation facility.
   (g) "Facility financing contract" means a contract entered into by
a public agency with any person whereby the person provides
financing for an energy conservation facility in exchange for
repayment of the financing and all costs and expenses related thereto
by the public agency. A facility financing contract may provide for
the person with whom the public agency contracts to provide any
combination of feasibility studies for, and design and construction
of, all or part of the energy conservation facility in addition to
the financing and other related services, and may provide for an
installment sale purchase, another form of purchase, or amortized
lease of the energy conservation facility by the public agency.
   (h) "Facility ground lease" means a lease of all, or any portion
of, land or a public building owned by, or under lease to, a public
agency to a person in conjunction with an energy service contract or
a facility financing contract. A facility ground lease may include,
in addition to the land on which energy conservation facilities will
be located, easements, rights-of-way, licenses, and rights of access,
for the construction, use, or ownership by the person of the
facility and all related utility lines not owned or controlled by the
interconnecting utility, and offsite improvements related thereto. A
facility ground lease may also include the addition or improvement
of utility lines and equipment owned by the interconnecting utility
which are necessary to permit interconnection between that utility
and an energy conservation facility.
   (i) "Person" means, but is not limited to, any individual,
company, corporation, partnership, limited liability company, public
agency, association, proprietorship, trust, joint venture, or other
entity or group of entities.
   (j) "Public agency" means the state, a county, city and county,
city, district, community college district, school district, joint
powers authority or other entity designated or created by a political
subdivision relating to energy development projects, and any other
political subdivision or public corporation in the state.
   (k) "Public building" includes any structure, building, facility,
or work which a public agency is authorized to construct or use, and
automobile parking lots, landscaping, and other facilities, including
furnishings and equipment, incidental to the use of any structure,
building, facility, or work, and also includes the site thereof, and
any easements, rights-of-way appurtenant thereto, or necessary for
its full use.



4217.12.  (a) Notwithstanding any other provision of law, a public
agency may enter into an energy service contract and any necessarily
related facility ground lease on terms that its governing body
determines are in the best interests of the public agency if the
determination is made at a regularly scheduled public hearing, public
notice of which is given at least two weeks in advance, and if the
governing body finds:
   (1) That the anticipated cost to the public agency for thermal or
electrical energy or conservation services provided by the energy
conservation facility under the contract will be less than the
anticipated marginal cost to the public agency of thermal,
electrical, or other energy that would have been consumed by the
public agency in the absence of those purchases.
   (2) That the difference, if any, between the fair rental value for
the real property subject to the facility ground lease and the
agreed rent, is anticipated to be offset by below-market energy
purchases or other benefits provided under the energy service
contract.
   (b) State agency heads may make these findings without holding a
public hearing.



4217.13.  Notwithstanding any other provision of law, a public
agency may enter into a facility financing contract and a facility
ground lease on terms that its governing body determines are in the
best interest of the public agency if the determination is made at a
regularly scheduled public hearing, public notice of which is given
at least two weeks in advance, and if the governing body finds that
funds for the repayment of the financing or the cost of design,
construction, and operation of the energy conservation facility, or
both, as required by the contract, are projected to be available from
revenues resulting from sales of electricity or thermal energy from
the facility or from funding that otherwise would have been used for
purchase of electrical, thermal, or other energy required by the
public agency in the absence of the energy conservation facility, or
both. State agency heads may make these findings without holding a
public hearing.


4217.14.  Notwithstanding any other provision of law, the public
agency may enter into contracts for the sale of electricity,
electrical generating capacity, or thermal energy produced by the
energy conservation facility at such rates and on such terms as are
approved by its governing body. Any such contract may provide for a
commitment of firm electrical capacity.



4217.15.  The public agency may, but is not required to, base the
findings required under Sections 4217.12 and 4217.13 on projections
for electrical and thermal energy rates from the following sources:
   (a) The public utility which provides thermal or electrical energy
to the public agency.
   (b) The Public Utilities Commission.
   (c) The State Energy Resources Conservation and Development
Commission.
   (d) The projections used by the Department of General Services for
evaluating the feasibility of energy conservation facilities at
state facilities located within the same public utility service area
as the public agency.


4217.16.  Prior to awarding or entering into an agreement or lease,
the public agency may request proposals from qualified persons. After
evaluating the proposals, the public agency may award the contract
on the basis of the experience of the contractor, the type of
technology employed by the contractor, the cost to the local agency,
and any other relevant considerations. The public agency may utilize
the pool of qualified energy service companies established pursuant
to Section 388 of the Public Utilities Code and the procedures
contained in that section in awarding the contract.



4217.17.  This chapter does not limit the authority of any public
agency to construct energy conservation projects or to enter into
other leases or contracts relating to the financing construction,
operation, or use of alternate energy type facilities in any manner
authorized under existing law. This chapter shall not be construed to
abrogate Section 14671.6.



4217.18.  The provisions of this chapter shall be construed to
provide the greatest possible flexibility to public agencies in
structuring agreements entered into hereunder so that economic
benefits may be maximized and financing and other costs associated
with the design and construction of alternate energy projects may be
minimized. To this end, public agencies and the entities with whom
they contract under this chapter should have great latitude in
characterizing components of energy conservation facilities as
personal or real property and in granting security interests in
leasehold interests and components of the alternate energy facilities
to project lenders.


State Codes and Statutes

Statutes > California > Gov > 4217.10-4217.18

GOVERNMENT CODE
SECTION 4217.10-4217.18



4217.10.  To help implement the policy set forth in Section 25008 of
the Public Resources Code, and to extend that policy to facilities
of local governments, public agencies may develop energy
conservation, cogeneration, and alternate energy supply sources at
the facilities of public agencies in accordance with this chapter.




4217.11.  The following terms, whenever used in this chapter, have
the meanings given in this section, except where the context clearly
indicates otherwise:
   (a) "Alternate energy equipment" means equipment for the
production or conversion of energy from alternate sources as its
primary fuel source, such as solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, remote natural gas of less than
one billion cubic feet estimated reserves per mile from an existing
gas gathering line, natural gas containing 850 or fewer British
Thermal Units per standard cubic foot, or any other source of energy,
the efficient use of which will reduce the use of fossil or nuclear
fuels.
   (b) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
   (c) "Conservation measures" means equipment, maintenance, load
management techniques and equipment, or other measures to reduce
energy use or make for a more efficient use of energy.
   (d) "Conservation services" means the electrical, thermal, or
other energy savings resulting from conservation measures, which
shall be treated as a supply of such energy.
   (e) "Energy conservation facility" means alternate energy
equipment, cogeneration equipment, or conservation measures located
in public buildings or on land owned by public agencies.
   (f) "Energy service contract" means a contract entered into by a
public agency with any person, pursuant to which the person will
provide electrical or thermal energy or conservation services to a
public agency from an energy conservation facility.
   (g) "Facility financing contract" means a contract entered into by
a public agency with any person whereby the person provides
financing for an energy conservation facility in exchange for
repayment of the financing and all costs and expenses related thereto
by the public agency. A facility financing contract may provide for
the person with whom the public agency contracts to provide any
combination of feasibility studies for, and design and construction
of, all or part of the energy conservation facility in addition to
the financing and other related services, and may provide for an
installment sale purchase, another form of purchase, or amortized
lease of the energy conservation facility by the public agency.
   (h) "Facility ground lease" means a lease of all, or any portion
of, land or a public building owned by, or under lease to, a public
agency to a person in conjunction with an energy service contract or
a facility financing contract. A facility ground lease may include,
in addition to the land on which energy conservation facilities will
be located, easements, rights-of-way, licenses, and rights of access,
for the construction, use, or ownership by the person of the
facility and all related utility lines not owned or controlled by the
interconnecting utility, and offsite improvements related thereto. A
facility ground lease may also include the addition or improvement
of utility lines and equipment owned by the interconnecting utility
which are necessary to permit interconnection between that utility
and an energy conservation facility.
   (i) "Person" means, but is not limited to, any individual,
company, corporation, partnership, limited liability company, public
agency, association, proprietorship, trust, joint venture, or other
entity or group of entities.
   (j) "Public agency" means the state, a county, city and county,
city, district, community college district, school district, joint
powers authority or other entity designated or created by a political
subdivision relating to energy development projects, and any other
political subdivision or public corporation in the state.
   (k) "Public building" includes any structure, building, facility,
or work which a public agency is authorized to construct or use, and
automobile parking lots, landscaping, and other facilities, including
furnishings and equipment, incidental to the use of any structure,
building, facility, or work, and also includes the site thereof, and
any easements, rights-of-way appurtenant thereto, or necessary for
its full use.



4217.12.  (a) Notwithstanding any other provision of law, a public
agency may enter into an energy service contract and any necessarily
related facility ground lease on terms that its governing body
determines are in the best interests of the public agency if the
determination is made at a regularly scheduled public hearing, public
notice of which is given at least two weeks in advance, and if the
governing body finds:
   (1) That the anticipated cost to the public agency for thermal or
electrical energy or conservation services provided by the energy
conservation facility under the contract will be less than the
anticipated marginal cost to the public agency of thermal,
electrical, or other energy that would have been consumed by the
public agency in the absence of those purchases.
   (2) That the difference, if any, between the fair rental value for
the real property subject to the facility ground lease and the
agreed rent, is anticipated to be offset by below-market energy
purchases or other benefits provided under the energy service
contract.
   (b) State agency heads may make these findings without holding a
public hearing.



4217.13.  Notwithstanding any other provision of law, a public
agency may enter into a facility financing contract and a facility
ground lease on terms that its governing body determines are in the
best interest of the public agency if the determination is made at a
regularly scheduled public hearing, public notice of which is given
at least two weeks in advance, and if the governing body finds that
funds for the repayment of the financing or the cost of design,
construction, and operation of the energy conservation facility, or
both, as required by the contract, are projected to be available from
revenues resulting from sales of electricity or thermal energy from
the facility or from funding that otherwise would have been used for
purchase of electrical, thermal, or other energy required by the
public agency in the absence of the energy conservation facility, or
both. State agency heads may make these findings without holding a
public hearing.


4217.14.  Notwithstanding any other provision of law, the public
agency may enter into contracts for the sale of electricity,
electrical generating capacity, or thermal energy produced by the
energy conservation facility at such rates and on such terms as are
approved by its governing body. Any such contract may provide for a
commitment of firm electrical capacity.



4217.15.  The public agency may, but is not required to, base the
findings required under Sections 4217.12 and 4217.13 on projections
for electrical and thermal energy rates from the following sources:
   (a) The public utility which provides thermal or electrical energy
to the public agency.
   (b) The Public Utilities Commission.
   (c) The State Energy Resources Conservation and Development
Commission.
   (d) The projections used by the Department of General Services for
evaluating the feasibility of energy conservation facilities at
state facilities located within the same public utility service area
as the public agency.


4217.16.  Prior to awarding or entering into an agreement or lease,
the public agency may request proposals from qualified persons. After
evaluating the proposals, the public agency may award the contract
on the basis of the experience of the contractor, the type of
technology employed by the contractor, the cost to the local agency,
and any other relevant considerations. The public agency may utilize
the pool of qualified energy service companies established pursuant
to Section 388 of the Public Utilities Code and the procedures
contained in that section in awarding the contract.



4217.17.  This chapter does not limit the authority of any public
agency to construct energy conservation projects or to enter into
other leases or contracts relating to the financing construction,
operation, or use of alternate energy type facilities in any manner
authorized under existing law. This chapter shall not be construed to
abrogate Section 14671.6.



4217.18.  The provisions of this chapter shall be construed to
provide the greatest possible flexibility to public agencies in
structuring agreements entered into hereunder so that economic
benefits may be maximized and financing and other costs associated
with the design and construction of alternate energy projects may be
minimized. To this end, public agencies and the entities with whom
they contract under this chapter should have great latitude in
characterizing components of energy conservation facilities as
personal or real property and in granting security interests in
leasehold interests and components of the alternate energy facilities
to project lenders.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 4217.10-4217.18

GOVERNMENT CODE
SECTION 4217.10-4217.18



4217.10.  To help implement the policy set forth in Section 25008 of
the Public Resources Code, and to extend that policy to facilities
of local governments, public agencies may develop energy
conservation, cogeneration, and alternate energy supply sources at
the facilities of public agencies in accordance with this chapter.




4217.11.  The following terms, whenever used in this chapter, have
the meanings given in this section, except where the context clearly
indicates otherwise:
   (a) "Alternate energy equipment" means equipment for the
production or conversion of energy from alternate sources as its
primary fuel source, such as solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, remote natural gas of less than
one billion cubic feet estimated reserves per mile from an existing
gas gathering line, natural gas containing 850 or fewer British
Thermal Units per standard cubic foot, or any other source of energy,
the efficient use of which will reduce the use of fossil or nuclear
fuels.
   (b) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
   (c) "Conservation measures" means equipment, maintenance, load
management techniques and equipment, or other measures to reduce
energy use or make for a more efficient use of energy.
   (d) "Conservation services" means the electrical, thermal, or
other energy savings resulting from conservation measures, which
shall be treated as a supply of such energy.
   (e) "Energy conservation facility" means alternate energy
equipment, cogeneration equipment, or conservation measures located
in public buildings or on land owned by public agencies.
   (f) "Energy service contract" means a contract entered into by a
public agency with any person, pursuant to which the person will
provide electrical or thermal energy or conservation services to a
public agency from an energy conservation facility.
   (g) "Facility financing contract" means a contract entered into by
a public agency with any person whereby the person provides
financing for an energy conservation facility in exchange for
repayment of the financing and all costs and expenses related thereto
by the public agency. A facility financing contract may provide for
the person with whom the public agency contracts to provide any
combination of feasibility studies for, and design and construction
of, all or part of the energy conservation facility in addition to
the financing and other related services, and may provide for an
installment sale purchase, another form of purchase, or amortized
lease of the energy conservation facility by the public agency.
   (h) "Facility ground lease" means a lease of all, or any portion
of, land or a public building owned by, or under lease to, a public
agency to a person in conjunction with an energy service contract or
a facility financing contract. A facility ground lease may include,
in addition to the land on which energy conservation facilities will
be located, easements, rights-of-way, licenses, and rights of access,
for the construction, use, or ownership by the person of the
facility and all related utility lines not owned or controlled by the
interconnecting utility, and offsite improvements related thereto. A
facility ground lease may also include the addition or improvement
of utility lines and equipment owned by the interconnecting utility
which are necessary to permit interconnection between that utility
and an energy conservation facility.
   (i) "Person" means, but is not limited to, any individual,
company, corporation, partnership, limited liability company, public
agency, association, proprietorship, trust, joint venture, or other
entity or group of entities.
   (j) "Public agency" means the state, a county, city and county,
city, district, community college district, school district, joint
powers authority or other entity designated or created by a political
subdivision relating to energy development projects, and any other
political subdivision or public corporation in the state.
   (k) "Public building" includes any structure, building, facility,
or work which a public agency is authorized to construct or use, and
automobile parking lots, landscaping, and other facilities, including
furnishings and equipment, incidental to the use of any structure,
building, facility, or work, and also includes the site thereof, and
any easements, rights-of-way appurtenant thereto, or necessary for
its full use.



4217.12.  (a) Notwithstanding any other provision of law, a public
agency may enter into an energy service contract and any necessarily
related facility ground lease on terms that its governing body
determines are in the best interests of the public agency if the
determination is made at a regularly scheduled public hearing, public
notice of which is given at least two weeks in advance, and if the
governing body finds:
   (1) That the anticipated cost to the public agency for thermal or
electrical energy or conservation services provided by the energy
conservation facility under the contract will be less than the
anticipated marginal cost to the public agency of thermal,
electrical, or other energy that would have been consumed by the
public agency in the absence of those purchases.
   (2) That the difference, if any, between the fair rental value for
the real property subject to the facility ground lease and the
agreed rent, is anticipated to be offset by below-market energy
purchases or other benefits provided under the energy service
contract.
   (b) State agency heads may make these findings without holding a
public hearing.



4217.13.  Notwithstanding any other provision of law, a public
agency may enter into a facility financing contract and a facility
ground lease on terms that its governing body determines are in the
best interest of the public agency if the determination is made at a
regularly scheduled public hearing, public notice of which is given
at least two weeks in advance, and if the governing body finds that
funds for the repayment of the financing or the cost of design,
construction, and operation of the energy conservation facility, or
both, as required by the contract, are projected to be available from
revenues resulting from sales of electricity or thermal energy from
the facility or from funding that otherwise would have been used for
purchase of electrical, thermal, or other energy required by the
public agency in the absence of the energy conservation facility, or
both. State agency heads may make these findings without holding a
public hearing.


4217.14.  Notwithstanding any other provision of law, the public
agency may enter into contracts for the sale of electricity,
electrical generating capacity, or thermal energy produced by the
energy conservation facility at such rates and on such terms as are
approved by its governing body. Any such contract may provide for a
commitment of firm electrical capacity.



4217.15.  The public agency may, but is not required to, base the
findings required under Sections 4217.12 and 4217.13 on projections
for electrical and thermal energy rates from the following sources:
   (a) The public utility which provides thermal or electrical energy
to the public agency.
   (b) The Public Utilities Commission.
   (c) The State Energy Resources Conservation and Development
Commission.
   (d) The projections used by the Department of General Services for
evaluating the feasibility of energy conservation facilities at
state facilities located within the same public utility service area
as the public agency.


4217.16.  Prior to awarding or entering into an agreement or lease,
the public agency may request proposals from qualified persons. After
evaluating the proposals, the public agency may award the contract
on the basis of the experience of the contractor, the type of
technology employed by the contractor, the cost to the local agency,
and any other relevant considerations. The public agency may utilize
the pool of qualified energy service companies established pursuant
to Section 388 of the Public Utilities Code and the procedures
contained in that section in awarding the contract.



4217.17.  This chapter does not limit the authority of any public
agency to construct energy conservation projects or to enter into
other leases or contracts relating to the financing construction,
operation, or use of alternate energy type facilities in any manner
authorized under existing law. This chapter shall not be construed to
abrogate Section 14671.6.



4217.18.  The provisions of this chapter shall be construed to
provide the greatest possible flexibility to public agencies in
structuring agreements entered into hereunder so that economic
benefits may be maximized and financing and other costs associated
with the design and construction of alternate energy projects may be
minimized. To this end, public agencies and the entities with whom
they contract under this chapter should have great latitude in
characterizing components of energy conservation facilities as
personal or real property and in granting security interests in
leasehold interests and components of the alternate energy facilities
to project lenders.