Law:Division 16.2. Property Assessed Clean Energy (pace) Financing Assistance (California)
From Law Delta
Chapter 1. General Provisions And Definitions
Ca Codes (prc:26100-26106) Public Resources Code Section 26100-26106
26100. (a) The Legislature finds and declares all of the following: (1) Property Assessed Clean Energy (PACE) financing has been pioneered by municipalities and counties in California as a way for home and small business owners to finance voluntary energy and water efficiency and clean energy improvements. (2) PACE financing was pioneered in the City of Berkeley, while the City and County of San Francisco, City of San Diego, City of Palm Desert, Sonoma County, and the California Statewide Communities Development Authority (CSCDA) have already initiated or are working to launch additional programs. (3) Seventeen other states, including Colorado and New York, have also enacted enabling PACE legislation. (4) The public subsidy provided by the PACE financing is justified by the benefits received in job creation, lower energy demand, and spurring new clean industries that will grow the economy. (b) It is the intent of the Legislature to assist local jurisdictions in financing the installation of distributed generation renewable energy sources, electric vehicle charging infrastructure, or energy or water efficiency improvements that are permanently fixed to real property through the use of voluntary contractual assessments. (c) It is not the intent of the Legislature to create any debt, liability, or obligation on the part of the state in assisting local jurisdictions pursuant to this division.
26101. Unless the context otherwise requires, the definitions in this chapter govern the construction of this division.
26102. "Applicant" means a public agency as defined in paragraph (3) of subdivision (c) of Section 5898.20 of the Streets and Highways Code.
26103. "Authority" means the California Alternative Energy and Advanced Transportation Financing Authority established pursuant to Section 26004.
26104. "Property Assessed Clean Energy bond" or "PACE bond" means a bond that is secured by a voluntary contractual assessment on property authorized pursuant to paragraph (2) of subdivision (a) of Section 5898.20 of the Streets and Highways Code or by a voluntary contractual assessment or a voluntary special tax on property to finance the installation of distributed generation renewable energy sources, electric vehicle charging infrastructure, or energy or water efficiency improvements that is levied pursuant to a chartered city' s constitutional authority under Section 5 of Article XI of the California Constitution.
26105. "PACE program" means a program established by an applicant that is financed by the PACE bond.
26106. This division does not create any liability or obligation upon the State of California and none shall be incurred by the authority beyond the extent to which moneys shall have been provided under this division. The authority shall not 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 this division.
Chapter 2. Pace Reserve Program
Ca Codes (prc:26120-26124) Public Resources Code Section 26120-26124
26120. The authority shall develop and administer a PACE Reserve program to reduce overall costs to the property owners of PACE bonds issued by an applicant by providing a reserve of no more than 10 percent of the initial principal amount of the PACE bond.
26121. To qualify for assistance pursuant to this division, the PACE program shall require all of the following: (a) The interest rate on the PACE bond does not exceed a percentage as determined by the authority to be appropriate. (b) Minimum legal loan structure and credit underwriting criteria as determined by the authority are met. (c) Proceeds of the PACE bonds are used to finance qualified energy and water efficiency, electric vehicle charging infrastructure, and clean energy improvements. (d) The improvement financed is for a residential project of three units or fewer, or a commercial project that costs less than twenty-five thousand dollars ($25,000) in total.
26122. An applicant shall submit to the authority an application providing a detailed description of the PACE program, a detailed description of the transactional activities associated with the PACE bond issuance, including all transactional costs, and other information deemed necessary by the authority.
26123. (a) In evaluating eligibility, the authority shall consider whether the applicant's PACE program includes the following conditions: (1) Loan recipients are legal owners of underlying property. (2) Loan recipients are current on mortgage and property tax payments. (3) Loan recipients are not in default or in bankruptcy proceedings. (4) Loans are for less than 10 percent of the value of the property. (5) The property is within the geographical boundaries of the PACE program. (6) The program offers financing for energy efficiency improvements or electric vehicle charging infrastructure. (7) Improvements financed by the program follow applicable standards of energy efficiency retrofit work, including any guidelines adopted by the State Resources Conservation and Development Commission. (b) In evaluating an application, the authority shall consider all of the following factors: (1) The use by the PACE program of best practices, adopted by the authority, to qualify eligible properties for participation in underwriting the PACE program. (2) The cost efficiency of the applicant's PACE program, including bond issuance. (3) The projected number of jobs created by the PACE program. (4) The applicant's PACE program requirements for quality assurance and consumer protection as related to achieving efficiency and clean energy production. (5) The mechanisms by which savings produced by this program are passed on to the property owners. (6) Any other factors deemed appropriate by the authority.
26124. The authority shall review the applicant's PACE bond issuance, including, but not limited to, indenture, trust agreement, and fiscal agent agreement ("the bond documents") and, when the authority is satisfied that the bond documents are consistent with the requirements of the PACE Reserve program established pursuant to this chapter, the authority shall advance to the applicant or the applicant's bond trustee, at the closing of the applicant's PACE bonds, the amount made available from the Renewable Resource Trust Fund and approved by the authority for use in the PACE bond's reserve fund under the bond documents. Prior to the disbursement of moneys pursuant to this section into a reserve fund, the authority shall enter into an agreement with the applicant regarding the creation and operation of the reserve fund, including the manner in which the authority will be repaid for any moneys disbursed to the reserve fund.
Chapter 3. Appropriation And Reporting
Ca Codes (prc:26140-26141) Public Resources Code Section 26140-26141
26140. (a) Until January 1, 2015, an amount of up to fifty million dollars ($50,000,000) from the Renewable Resource Trust Fund, established pursuant to Section 25751, is hereby appropriated to the authority for the purposes of this division. The moneys appropriated shall remain in the Renewable Resource Trust Fund until the funds are needed by the authority pursuant to this division. (b) Of the moneys appropriated in subdivision (a), up to three hundred thousand dollars ($300,000) may be expended by the authority for the initial administrative costs in implementing this division. (c) All repayments of moneys disbursed pursuant to this division shall be deposited into the Renewable Resource Trust Fund.
26141. (a) On March 31, 2011, and annually thereafter, the authority shall submit to the Legislature a report pursuant to Section 9795 of the Government Code on all of the following: (1) The status of the account. (2) A summary of the PACE bonds that received assistance pursuant to this division. (3) A summary of the benefits provided by this division, including reduced interest rates on the PACE bonds receiving assistance pursuant to this division. (4) The number of jobs created by the PACE programs that received assistance pursuant to this division. (5) Information on energy and water savings resulting from the PACE programs that received assistance pursuant to this division. (6) Other information deemed appropriate by the authority. (b) This section shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date.