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

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

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Bill Title: California Climate Technology and Infrastructure

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-08-28 - Ordered to inactive file on request of Assembly Member V. Manuel Pérez. [SB1121 Detail]

Download: California-2013-SB1121-Amended.html

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BILL NUMBER: SB 1121	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 10, 2014

INTRODUCED BY   Senator De León

                        FEBRUARY 19, 2014

    An act relating to the California Green Bank. 
 An act to add and repeal Part 11.5 (commencing with Section
15880) to Division 3 of Title 2 of the Government Code, and to amend
Section 39712 of the Health and Safety Code, relating to state
government, and making an appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1121, as amended, De León. The California Green Bank. 
   (1) The Bergeson-Peace Infrastructure and Economic Development
Bank Act authorizes the California Infrastructure and Economic
Development Bank, governed by a board of directors, to make loans,
issue bonds, and provide other assistance for various types of
economic development projects, among other things. The activities of
the bank under these provisions are funded from the California
Infrastructure and Economic Development Bank Fund, which is
continuously appropriated for these purposes.  
   This bill would establish until January 1, 2036, the California
Green Bank to, among other things, serve as a provider of bond
guarantees, loans, loan guarantees, the warehousing of loans,
securitization, insurance, portfolio insurance, credit enhancements,
and other forms of financing support and risk management for clean
energy projects and innovative energy technology projects, as those
terms are defined. The bank would be governed by a board of directors
composed of 11 members appointed by the Governor, the Legislature,
and various heads of executive branch entities, as specified, to
serve terms of office to be determined by the board. The act would
authorize the board to select a chief executive officer to manage and
conduct the business of the bank, at the direction of the board, and
to select an executive vice president and 2 divisional vice
presidents and hire staff. The act would require these employees to
be compensated at prevailing rates of compensation for similar
positions in private industry. The act would authorize the bank to
employ or contract with banks, credit agencies, and attorneys, at
customary commercial rates to carry out the activities and mission of
the bank, including, but not limited to, administrative and
operative functions.  
   The act would specifically authorize the bank to issue bonds that
may have a maturity of not more than 50 years and are exempt from
state taxation. The act would limit the repayment of bonds to the
extent funds are available to the bank and would provide that
repayment is not backed by the full faith and credit of the state.
The act would require the bank to establish a program to provide
loans, loan guarantees, securitization, insurance, portfolio
insurance, and other forms of financing support, as the bank
determines is appropriate for qualified clean energy projects. The
act would require the bank to charge fees for bond guarantees, and
would authorize the bank to facilitate financing in tax equity
markets and take a nonvoting equity or membership interest in
innovative energy technology projects or developers. The act also
would authorize the bank to take certain actions if a sponsor or
developer of an innovative energy technology projects defaults on its
financing support.  
   The act would establish the California Green Bank Fund, to receive
local, state, federal, and private moneys, as a continuously
appropriated fund for the purpose of implementing the act.  

   The act annually requires the bank to submit a report to the
Governor and the Legislature on its activities and to be
independently audited.  
   (2) The California Global Warming Solutions Act of 2006 requires
the State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and,
among other things, authorizes the state board to include use of
market-based compliance mechanisms. Existing law requires all moneys,
except for fines and penalties, collected by the state board from
the auction or sale of allowances as part of a market-based
compliance mechanism to be deposited in the Greenhouse Gas Reduction
Fund and to be available upon appropriation by the Legislature.
Existing law authorizes the allocation of moneys appropriated from
the Greenhouse Gas Reduction Fund for the purpose of reducing
greenhouse gas emissions through, among other things, investments in
programs implemented by local and regional agencies and
collaboratives, and by nonprofit organizations coordinating with
local governments.  
   This bill would specify that these investments include the
California Green Infrastructure Bank.  
   (3) Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.  
   This bill would make legislative findings to that effect. 

   Existing law establishes various programs throughout the state to
promote energy efficiency, reduce greenhouse gases, and encourage
private economic development.  
   This bill would state the intent of the Legislature to enact
legislation that would establish the California Green Bank to
coordinate, align, and enhance the state's efforts to provide energy
finance programs for advanced energy technologies and projects
throughout the state. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Part 11.5 (commencing with Section
15880) is added to Division 3 of Title 2 of the   Government
Code   , to read:  

      PART 11.5.  The California Green Bank Act


   15880.  The Legislature finds and declares the purposes of the
California Green Bank is to do all of the following:
   (a) Evaluate and coordinate financing support and increase private
investment in otherwise commercially viable clean energy projects,
other than innovative energy technology projects, not currently able
to obtain financing in the capital markets at a reasonable cost with
a reasonable rate of return to a clean energy project developer.
   (b) Evaluate and coordinate financing support and increase private
investment in innovative energy technology projects not currently
able to obtain financing in the capital markets to achieve
commercialization, drawing upon the state's unique combination of
experts in technology, clean-tech investment, and low-carbon
innovations to carefully evaluate and proactively support these
investments.
   (c) Reduce rates and decrease costs for utility ratepayers within
the state, expand the accessibility and affordability of clean energy
for end users, ensure the reliability and safety of the state's
energy supply, increase the use of clean energy, promote energy
efficiency, and advance the state's energy and infrastructure-related
economy, including, but not limited to, credit enhancement tools
that enable low- and moderate-income homeowners to obtain financing
for clean energy projects.
   (d) Foster increasingly efficient, low-cost private capital
financing for clean energy projects through the creation of financial
performance data, standardized contracts, underwriting standards,
and measurement and verification protocols for clean energy projects.

   (e) Serve as a provider of bond guarantees, loans, loan
guarantees, the warehousing of loans, securitization, insurance,
portfolio insurance, credit enhancements, and other forms of
financing support and risk management for clean energy projects.
   (f) Achieve the level of financing support for clean energy
projects necessary to advance the state's policy objectives,
including, but not limited to, the reduction of greenhouse gas
emissions within the state.
   15880.5.  The following definitions shall apply to this part,
unless the context requires otherwise:
   (a) "Act" means the California Green Bank Act created under this
part.
   (b) "Bank" means the California Green Bank.
   (c) "Board" means the Board of Directors of the California Green
Bank.
   (d) "Bonds" means bonds, including structured, senior, and
subordinated bonds or other securities, loans, notes, including bond,
revenue, tax, or grant anticipation notes, commercial paper,
floating rate and variable maturity securities, and any other
evidences of indebtedness or ownership, including, but not limited
to, certificates of participation or beneficial interest, asset
backed certificates, or lease-purchase or installment purchase
agreements.
   (e) "Clean agriculture project" means any project, technology,
product, service, function, or measure, or an aggregation of
projects, technologies, products, services, functions or measures,
whose primary purpose is the development or deployment, including
manufacturing, of a technology, product, or service that avoids or
reduces emissions of greenhouse gases directly or indirectly caused
by the production or processing of crops or livestock.
   (f) "Clean energy infrastructure project" means the construction,
alteration, or repair of any of type of infrastructure necessary for
the deployment of technologies, products, or services that will avoid
or reduce emissions of greenhouse gases including, but not limited
to, electric transmission and distribution facilities interconnected
to renewable energy projects or system efficiency projects, hydrogen
transportation and distribution systems, including hydrogen vehicle
fueling stations, or electric vehicle charging stations, or
improvements to infrastructure used for the transportation of
passengers, goods, or freight.
   (g) "Clean energy project" means any project, technology, product,
service, function, or measure, or an aggregation of projects,
technologies, products, services, functions or measures that avoids
or reduces emissions of greenhouse gases, including, but not limited
to, energy efficiency projects, clean energy infrastructure projects,
innovative energy technology projects, renewable energy projects;
system efficiency projects, clean agriculture projects, low-carbon
transportation projects, and demand response projects or an
aggregation of any of these types of projects.
   (h) "Demand response project" means any project, technology,
product, service, function, or measure, or an aggregation of
projects, technologies, products, services, functions, or measures
that changes electric usage by end-use customers in the state from
their normal consumption patterns in response to any of the
following:
   (1) Changes in the price of electricity over time.
   (2) Incentive payments designed to induce lower electricity use at
times of high market prices.
   (3) System reliability.
   (i) "Energy efficiency project" means any project, technology,
product, service, function, or measure, or an aggregation of
projects, technologies, products, services, functions, or measures,
that results in the reduction of energy use required to achieve the
same level of service or output prior to the application of the
project, technology, product, service function, or measure, and
reduces emissions of greenhouse gas relative to emissions that would
have occurred prior to the application of the project, technology,
product, service, function, or measure, including, but not limited
to, projects, technologies, products, services, functions, or
measures that reduce the amount of greenhouse gas emissions
associated with water capture, conveyance, use, reuse, recycling, or
treatment.
   (j) "Fund" means the California Green Bank Fund.
   (k) "Innovative energy technology project" means any project whose
primary purpose is either of the following:
   (1) Development or deployment, including manufacturing, of a
technology, infrastructure, practice, product, or service that avoids
or reduces emissions of greenhouse gases and that employs new or
significantly improved technologies or practices as compared to
technologies or practices that are in general use in the commercial
marketplace in the United States at the time the project is approved
by the bank.
   (2) Manufacturing of a commercially ready energy technology or
product that avoids or reduces emissions of air pollutants or
greenhouse gases, and that incorporates an innovative manufacturing
process or processes not in general use in the commercial marketplace
in the United States at the time the project is approved by the
bank.
   (l) "Low-carbon transportation project" means any project,
technology, product, service, function, or measure, or an aggregation
of projects, technologies, products, services, functions, or
measures, that result in reductions in greenhouse gas emissions from
the transportation of people, goods, or freight.
   (m) "Renewable energy project" means the development,
construction, deployment, alteration, or repair of any solar, wind,
geothermal, appropriately sourced biomass, anaerobic digestion of
organic waste streams, small hydropower projects, ocean or tidal,
fuel cell using renewable fuels, or advanced biofuel or other
renewable fuel energy generation facility.
   (n) "System efficiency project" means the development,
construction, deployment, alteration, or repair of any distributed
generation, energy storage, smart grid technologies, advanced
battery, microgrid, fuel cell using renewable fuels, or combined heat
and power systems.
   15880.10.  There is in state government the California Green Bank.
The bank shall have two separate divisions, as follows:
   (a) The clean energy division, which shall oversee all clean
energy projects, other than innovative energy technology projects.
   (b) The innovative energy technologies division, which shall
oversee innovative energy technology projects.
   15880.15.  The bank shall be an independent entity in state
government. Neither the bank nor any of its functions, powers, or
duties shall be transferred to or consolidated with any other
department or agency, of the state.
   15880.20.  The California Green Bank Fund is established within
the State Treasury for the purpose of implementing this act. Moneys
shall be deposited in the fund pursuant to Section 15880.65.
Notwithstanding Section 13340, all moneys in the fund are
continuously appropriated without regard to fiscal year for the
support of the bank and shall be available for expenditure by the
bank for the purposes stated in the act.
   15880.25.  (a) The bank shall be governed by a board of directors,
composed of 11 members as follows:
   (1) The Governor shall appoint three members.
   (2) The Senate Committee on Rules shall appoint one member.
   (3) The Speaker of the Assembly shall appoint one member.
   (4) The Treasurer shall appoint one member.
   (5) The Department of Finance shall appoint one member.
   (6) The Public Utilities Commission shall appoint one member.
   (7) The Energy Commission shall appoint one member.
   (8) The State Air Resources Board shall appoint one member.
   (9) The Department of Water Resources shall appoint one member.
   (b) The members of the board appointed by the Governor, the Senate
Committee on Rules, and the Speaker of the Assembly shall have
private sector financial experience.
   (c) The initial terms of the members of the board shall be four
years. For terms beginning after the first term of four years, the
board shall, in its bylaws, create staggered terms of 2, 3, and 4
years for members of the board.
   (d) Any member of the board whose term has expired may continue to
serve on the board until the earlier of either of the following:
   (1) The date on which that member's successor is appointed.
   (2) The end of the six-month period beginning on the date the
member's term expired.
   (e) Members of the board may be reappointed for additional terms
as members of the board.
   (f) Any vacancy on the board shall be filled in the same manner in
which the original appointment was made.
   (g) Any member of the board appointed to fill a vacancy occurring
before the expiration of the term for which the member's predecessor
was appointed shall be appointed only for the remainder of that term.

   15880.30.  Six of the members of the board shall constitute a
quorum. The affirmative vote of a majority of a quorum shall be
necessary for any action to be taken by the board.
   15880.35.  (a) The board shall adopt, and may amend, bylaws as are
necessary for the proper management and functioning of the bank.
   (b) The board shall adopt an official seal.
   (c) The board may establish committees and subcommittees as it
deems necessary to carry out the activities and purposes of the bank.

   (d) At the request of any two members of the board, the chairman
shall place an item pertaining to the policies or procedures of the
bank on the agenda for discussion by the board. Not later than 30
days after the date that a request is made, the chairman shall hold a
meeting of the board at which the item shall be discussed.
   (e) The board may sue or be sued in its own name or delegate the
authority to the chief executive officer.
   15880.40.  (a) (1) The board shall select a chief executive
officer. The chief executive officer shall manage and conduct the
business and affairs of the bank at the direction of the board.
   (2) The chief executive officer shall have significant expertise
in management and administration of a financial institution, or
significant expertise in the financing and development of energy or
infrastructure projects.
   (3) The chief executive officer shall not have any financial
interest in either of the following:
   (A) A clean energy project being considered by the board, unless
that interest is placed in a blind trust.
   (B) An investment institution, its affiliates, or any other entity
seeking or likely to seek financial assistance for any clean energy
project from the bank, unless the interest is placed into a blind
trust for the tenure of the service of the chief executive officer,
plus two additional years.
   (b) The chief executive officer may appoint an executive vice
president who shall serve as chief executive officer during the
absence or disability of, or in the event of a vacancy in the office,
of chief executive officer. The executive vice president shall
perform functions as the chief executive officer prescribes.
   (c) The chief executive officer may appoint one divisional vice
president for each of the bank's two divisions who shall direct,
control, and oversee the function of his or her respective division
and perform functions as the chief executive officer prescribes.
   (d) Except as the board may otherwise determine, the chief
executive officer may employ staff as he or she determines is
necessary to carry out the activities and purposes of the bank.
   15880.45.  (a) The bank may, consistent with Article VII of the
California Constitution, contract with banks, credit agencies, and
attorneys at customary commercial rates to provide services to carry
out the activities and mission of the bank, including, but not
limited to, administrative and operative functions.
   (b) Notwithstanding any other law, the bank shall compensate its
employees at prevailing rates for compensation for similar positions
in private industry.
   (c) The bank may purchase insurance for itself or for its
fiduciaries to cover liability or losses occurring by reason of the
act or omission of the bank or of a fiduciary, if the insurance
permits recourse by the insurer against the fiduciary in the case of
a breach of a fiduciary obligation by the fiduciary.
   15880.50.  (a) A director, officer, attorney, agent, or employee
of the bank shall not, in any manner directly or indirectly,
participate in the deliberation upon, or the determination of, any
question affecting the individual's personal interests, or the
interests of any corporation, partnership, or association in which
the individual is directly or indirectly personally interested.
   (b) The members of the board shall be subject to the Political
Reform Act of 1974 (Title 9 (commencing with Section 81000)) and all
other applicable laws relating to the prohibitions and limitations of
financial interests of public officials and employees.
   15880.55.  (a) Members of the board shall not receive a salary,
but be paid a per diem in the amount of $____ for each day away from
home working on bank business.
   (b) The chief executive officer shall be compensated at an amount
set by the board that is commensurate with a similar private sector
position.
   (c) The executive vice president and divisional vice presidents
shall be compensated at an amount set by the chief executive officer
and shall be commensurate with similar private sector financial
positions.
   15880.60.  (a) The bank is authorized to issue bonds, the proceeds
from which shall be deposited into the fund.
   (b) Bonds issued by the bank shall be in the forms and
denominations as determined by the bank, have a maturity of no more
than 50 years, and bear an interest rate set by the bank.
   (c) The repayment of bonds issued by the bank shall be paid by the
bank, only to the extent funds are available to the bank and shall
not be backed by the full faith and credit of the state. Each bond
shall include on its face a notation to this effect.
   (d) The aggregate face amount of the bonds issued under this
section shall be in an amount to be determined by the bank.
   (e) The bank shall issue bonds through a competitive bidding
process that encourages aggressive bidding and in a manner that
ensure there are at least four different unaffiliated purchasers.
   (f) Any and all bonds issued by the bank, their transfer and the
income therefrom, shall at all times be free from taxation of every
kind by the state and by all political subdivisions of the state.
   15880.65.  (a) The bank may receive for deposit into the fund any
local, state, or federal moneys to provide financing support for
clean energy projects pursuant to the act.
   (b) The bank may receive for deposit into the fund charitable
gifts, grants, contributions, loans, and other financial conveyance
from private individuals, corporations, and philanthropic foundations
for providing financing support for clean energy projects generally,
or for the express purpose of financing a specific clean energy
project or category of clean energy projects. Moneys in the fund
other than from a gift, grant, contribution, loan, or other financial
conveyance made to support a clean energy projects shall not be
dedicated for financing support for any specific project or category
projects.
   15880.70  The bank shall assess reasonable fees on its activities,
including loans, loan guarantees, insurance, portfolio insurance,
and other forms of financing support or risk management it provides
to cover its reasonable costs and expenses, as determined by the
board. The bank shall deposit fees it collects into the fund.
   15880.75.  The bank may own or take interest in property to the
extent necessary to carry out its activities.
   15880.80.  (a) The bank shall establish a program to provide, on a
competitive basis, loans, loan guarantees, securitization,
insurance, portfolio insurance, and other forms of financing support
or risk management, as the bank determines appropriate, for any clean
energy project that meets the qualifications set forth in this act
and the guidelines established by the bank.
   (b) The board may determine lending guidelines, including, but not
limited to, the setting of maturity and interest rates for loans.
   (c) An applicant may be any public or private entity, whether
organized for profit or nonprofit, that is engaged in business or
operations within the state.
   (d) The bank shall establish guidelines and criteria for selecting
clean energy projects to receive financing support. Clean energy
projects shall comply with the criteria, priorities, and guidelines
adopted by the bank to the maximum extent feasible. Those criteria
shall include, but not be limited to, a consideration of the
following:
   (1) Maximizing economic, environmental, and public health benefits
to the state.
   (2) Fostering job creation by promoting the reduction of
greenhouse gas emissions by California workers and businesses.
   (3) Complementing efforts to improve air quality.
   (4) Directing investment toward the most disadvantaged communities
and households in the state.
   (5) Providing opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
   (6) Lessening the impacts and effects of climate change on the
state's communities, economy, and environment.
   (7) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, energy transmission and storage, and
other related actions, including, but not limited to, energy
efficiency in public universities, state and local public buildings,
and industrial and manufacturing facilities.
   (8) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
   (9) Funding to reduce greenhouse gas emissions associated with
water use and supply, land, and natural resource conservation and
management, forestry, and sustainable agriculture.
   (10) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
   (11) Funding to reduce greenhouse gas emissions through increased
diversion of municipal solid waste from disposal through waste
reduction, diversion, and reuse.
   (12) Funding to reduce greenhouse gas emissions through
investments in programs implemented by local and regional agencies,
local and regional collaboratives, and nonprofit organizations
coordinating with local governments.
   (13) Funding in research, development, and deployment of
innovative technologies, measures, and practices related to programs
and projects funded pursuant to this part.
   (14) Creating robust private markets for low-carbon technologies.
   (e) The bank shall provide financing support, including, but not
limited to, loans, loan guarantees, securitization, insurance,
portfolio insurance, bond guarantees, and other forms of financing
support or risk management, to a clean energy project only if all of
the following criteria are met:
   (1) The clean energy project is located within the state.
   (2) Except in the case of an innovative energy technology project,
the clean energy project can support a commercial rate of debt,
adjusted downward to account for the bank's lower costs.
   (3) The requested financing support is secured as the chief
executive officer of the bank determines appropriate for the sector
and the project.
   (4) The clean energy project satisfies all statutory requirements
or conditions related to the receipt of revenues from the Greenhouse
Gas Reduction Fund, consistent with paragraph (6) of subdivision (c)
of Section 39712 of the Health and Safety Code.
   (5) The clean energy project is consistent with any criteria,
priorities, and guidelines established by the bank.
   (6) The board determines one or more of the following:
   (A) The bank's participation in the financing support for a clean
energy project would enable otherwise creditworthy or commercially
viable entities to deploy that clean energy projects at a reasonable
cost with a reasonable rate of return to the clean energy project
developer of and on its invested capital.
   (B) The financing support will facilitate deployment of a clean
energy project at an accelerated rate.
   (C) The financing support will stimulate, aid, or otherwise
support manufacturing of finished products or component parts used in
an innovative energy technology project located within the state.
   (D) The financing support is necessary to create liquid markets
for energy securities.
   (E) The financing support otherwise addresses barriers that have
prevented adequate commercial financing of clean energy projects.
   (f) In addition to any other methods the bank may use to identify
clean energy projects that satisfy the requirements for financing
support, the bank shall utilize existing clean energy development
networks to identify clean energy projects that satisfy the
requirements for financing support, including the creation of
advisory committees comprised of public and private stakeholders to
the extent deemed appropriate by the board. The bank will also
endeavor to coordinate with existing state clean energy research,
development, and deployment programs.
                                                    (g) Any recipient
of funds under this part that utilizes the funds for construction
purposes shall certify that the contractors are properly licensed
under all applicable state laws.
   (h) The bank shall charge any fees for bond guarantees as the
board determines appropriate.
   (i) The bank may facilitate financing transactions in tax equity
markets and long-term purchasing of clean energy by governmental and
nongovernmental nonprofit entities, to the degree and extent that the
board determines the financing activity is appropriate and
consistent with carrying out the terms of this part.
   (j) The clean energy division shall only conduct financing
activities for those clean energy projects that meet the criteria and
guidelines established by the board for clean energy projects.
   (k) A sponsor or developer of, or a financing party for, a clean
energy project that seeks financing support under this part shall
submit an application to the board in a form and manner required by
the board.
   15880.85.  (a) The bank shall allocate between 15 and 30 percent
of its capital to provide financing support for innovative energy
technology projects.
   (b) The bank may provide convertible debt or warrants to support
innovative energy technology projects, and as a result, may take a
nonvoting equity or membership interest in innovative energy
technology projects or developers thereof.
   (c) If the sponsor or developer defaults on its obligations that
are a condition of the financing support it receives with regard to
an innovative energy technology project, the bank may,
notwithstanding any other law, do either of the following:
   (1) Complete, maintain, operate, lease, or otherwise dispose of
any property acquired pursuant to a guarantee or related agreements,
including, but not limited to, all intellectual property and
technology necessary for any person designated by the bank to
complete and operate the innovative energy technology project.
   (2) Permit the sponsor or developer, pursuant to an agreement with
the bank, to continue to pursue the purposes of the innovative
energy technology project, if the bank determines this to be in the
public interest.
   15880.90.  The board may fix and collect insurance premiums or
loan loss reserve contributions from applicants that are adequate to
cover the financial risks associated with the bank's financing
support programs.
   15880.95.  (a) The chief executive officer shall do all of the
following:
   (1) Require any entity receiving financing support pursuant to
this part to report quarterly, in a format specified by the chief
executive officer, on the entity's use of the support and its
progress fulfilling the objectives for which that support was
granted, and the chief executive officer shall make these reports
available to the public.
   (2) Pursue a diversified portfolio of clean energy projects for
which the bank provides financing support.
   (3) Establish appropriate mechanisms to ensure appropriate use and
compliance with all terms of any financing support made available
pursuant to this part.
   (4) Create and maintain a fully searchable database accessible on
the bank's Internet Web site at no cost to the public that contains
all of the following:
   (A) A list of each entity that has applied for a loan, loan
guarantee, insurance, portfolio insurance, or other forms of
financing support or risk management under this section.
   (B) A description of each application.
   (C) The status of each application.
   (D) The name of each entity receiving funds made available
pursuant to this section.
   (E) The purpose for which that entity is receiving those funds.
   (F) The quarterly report submitted by the entity pursuant to this
part.
   (G) Any other information sufficient to allow the public to
understand and monitor loans, loan guarantees, insurance, portfolio
insurance, and other forms of financing support or risk management
provided under this part.
   (5) Assist in and ensure the development of underwriting standards
for the financing of clean energy projects consistent with good
industry practices for public and private financial institutions.
   (6) Establish a risk committee that develops and publishes
operational performance metrics including operations, risk
management, financial and market metrics, and energy and
environmental metrics.
   (7) Receive public comment in writing on the activities of the
bank.
   (b) The chief executive officer may do any of the following:
   (1) Establish additional reporting and information requirements
for any recipient of financing support made available pursuant to
this part.
   (2) In accordance with procedures set forth in bylaws established
by the board, withdraw financing support made available pursuant to
this part to entities that demonstrate an insufficient level of
performance, or wasteful or fraudulent spending, as defined in
advance of the granting of any financing support, and award these
funds competitively to new or existing applicants in accordance with
this section.
   15880.100.  To the extent necessary and appropriate, the chief
executive officer may redact any information regarding applicants and
borrowers to protect confidential business information.
   15880.105.  The bank shall, not later than February 1 of each
year, submit to the Governor and the Joint Legislative Budget
Committee, pursuant to Section 9795, a report of its activities
pursuant to this act for the preceding fiscal year. The report shall
include all of the following:
   (a) A listing of applications accepted.
   (b) A specification of bonds sold and interest rates thereon.
   (c) The amount of other public and private funds leveraged by the
assistance provided.
   (d) A report of revenues and expenditures for the preceding fiscal
year, including all of the bank's costs. The information provided
pursuant to this subdivision shall include, but need not be limited
to, both of the following:
   (1) The amount and source of total bank revenues. Revenues shall
be shown by main categories of revenues, including interest earnings,
fees collected, and bond proceeds, for each bank program.
   (2) The amount and type of total bank expenditures. Expenditures
shall be shown by major categories of expenditures, including loans
provided, debt service payments, and program support costs, for each
bank program.
   (e) Projection of the bank's needs and requirements for the coming
year.
   (f) Recommendations for changes in state law necessary to meet the
objectives of this part.
   15880.110.  The bank shall be audited annually. The audit shall be
conducted using generally accepted accounting standards by an
independent certified public accountant.
   15880.115.  The board shall commission independent, comprehensive
biennial evaluations of the performance of the bank. The evaluations
shall assess the effectiveness and cost-effectiveness of all of the
bank's activities in meeting the purpose of the bank as set forth in
this part.
   15880.120.  This part shall remain in effect only until January 1,
2036, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2036, deletes or extends
that date. 
   SEC. 2.    Section 39712 of the   Health and
Safety Code   is amended to read: 
   39712.  (a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent with
the requirements of this chapter and Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code.
   (2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5 (commencing
with Section 38500) and is consistent with law. If any expenditure of
moneys from the fund for any measure or project is determined by a
court to be inconsistent with law, the allocations for the remaining
measures or projects shall be severable and shall not be affected.
   (b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent with
Division 25.5 (commencing with Section 38500) and, where applicable
and to the extent feasible:
   (1) Maximize economic, environmental, and public health benefits
to the state.
   (2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
   (3) Complement efforts to improve air quality.
   (4) Direct investment toward the most disadvantaged communities
and households in the state.
   (5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
   (6) Lessen the impacts and effects of climate change on the state'
s communities, economy, and environment.
   (c) Moneys appropriated from the fund may be allocated, consistent
with subdivision (a), for the purpose of reducing greenhouse gas
emissions in this state through investments that may include, but are
not limited to, any of the following:
   (1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public
universities, state and local public buildings, and industrial and
manufacturing facilities.
   (2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
   (3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.
   (4) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
   (5) Funding to reduce greenhouse gas emissions through increased
in-state diversion of municipal solid waste from disposal through
waste reduction, diversion, and reuse.
   (6) Funding to reduce greenhouse gas emissions through investments
in programs implemented by local and regional agencies, local and
regional collaboratives,  and  nonprofit
organizations coordinating with local  governments. 
 governments, and, until January 1, 2036, the California Green
Bank (Part 11.5 (commencing with Section 15880) to Division 3 of
Title 2 of the Government Code). 
   (7) Funding research, development, and deployment of innovative
technologies, measures, and practices related to programs and
projects funded pursuant to this chapter.
   SEC. 3.    The Legislature finds and declares that
Section 1 of this act, which adds Section 15880.100 of the Government
Code, imposes a limitation on the public's right of access to the
meetings of public bodies or the writings of public officials and
agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision,
the Legislature makes the following findings to demonstrate the
interest protected by this limitation and the need for protecting
that interest:  
   Protecting confidential business information is necessary to
protect the legitimate, private interests of California businesses.
 
  SECTION 1.    (a) It is the intent of the
Legislature to enact legislation that would establish the California
Green Bank to coordinate, align, and enhance the state's efforts to
provide energy finance programs for advanced energy technologies and
projects throughout the state by accomplishing all of the following:
   (1) Reducing rates and decreasing costs for California ratepayers
while expanding the accessibility and affordability of clean energy
for all Californians.
   (2) Increasing private investment in clean energy projects that
currently are not able to obtain financing in traditional capital
markets at a reasonable cost by providing a variety of financial
tools to stimulate private investment.
   (3) Achieving California's environmental and economic objectives
by reducing greenhouse gas emissions and increasing investments in
disadvantaged communities.
   (4) Facilitating efficient, low-cost private financing markets for
clean energy projects.
   (5) Supporting California's unique position as a worldwide leader
in clean energy innovation by helping to bring innovative
technologies to market.
    (b) It is the intent of the Legislature to enact legislation that
would establish a board of directors for the California Green Bank
to be composed of appointees by the Governor, the Legislature, the
Treasurer, the Department of Finance, the California Public Utilities
Commission, the California Energy Commission, and the California Air
Resources Board, who possess expertise in financing and green
investments. The legislation would further provide for the creation
of governing documents for the California Green Bank and the position
of an executive director to manage and conduct the business of the
California Green Bank, subject to the direction of its board.