This chapter shall be known and may be cited as the Energy Conservation Assistance Act of 1979.
Chapter 5.2Energy Conservation Assistance
Section § 25410
This section designates the official name of the chapter as the Energy Conservation Assistance Act of 1979.
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Section § 25410.5
The Legislature acknowledges that energy costs are usually a significant part of local governments' budgets, often second to other expenses. Many public institutions could potentially cut their energy bills by 20-30% with better energy management.
A range of cost-saving energy conservation measures are available, typically paying back their initial costs within three years. However, local governments often lack the expertise and funding necessary to manage energy use efficiently.
Since 1980, the Energy Conservation Assistance Account has loaned $110 million to hundreds of institutions, saving around $35 million annually on energy. Local governments need help in all stages of energy efficiency upgrades, from planning to troubleshooting.
The Legislature finds and declares all of the following:
(a)CA Public Resources Code § 25410.5(a) Energy costs are frequently the second largest discretionary expense in a local government’s budget. According to the commission, most public institutions could reduce their energy costs by 20 to 30 percent.
(b)CA Public Resources Code § 25410.5(b) A variety of energy conservation measures are available to local governments. These measures are highly cost-effective, often providing a payback on the initial investment in three years or less.
(c)CA Public Resources Code § 25410.5(c) Many local governments lack energy management expertise and are often unaware of their high energy costs or the opportunities to reduce those costs.
(d)CA Public Resources Code § 25410.5(d) Local governments that desire to reduce their energy costs through energy conservation and efficiency measures often lack available funding.
(e)CA Public Resources Code § 25410.5(e) Since 1980, the Energy Conservation Assistance Account has provided $110 million in loans, through a revolving loan account, to 600 schools, hospitals, and local governments. The energy conservation projects funded by the account save approximately $35 million annually in energy costs.
(f)CA Public Resources Code § 25410.5(f) Local governments and public institutions need assistance in all aspects of energy efficiency improvements, including, but not limited to, project identification, project development and implementation, evaluation of project proposals and options, operations and maintenance, and troubleshooting of problem projects.
energy costs local government energy conservation cost-effective measures energy management expertise funding challenges Energy Conservation Assistance Account loans energy savings energy efficiency improvements project development project implementation public institutions energy conservation projects energy cost reduction
Section § 25410.6
This law explains that the State Energy Conservation Assistance Account provides financial support, like grants and loans, to local governments and public institutions in California. The goal is to save energy, install energy storage systems, and increase electric vehicle charging stations.
The law also encourages institutions to submit multiple projects together to assess their overall cost-effectiveness. Additionally, it asks utility companies to help with energy audits and spread the word about the funds available through this program.
(a)CA Public Resources Code § 25410.6(a) The commission shall administer the State Energy Conservation Assistance Account to provide grants and loans to local governments and public institutions to maximize energy use savings, expand installation of energy storage systems, and expand the availability of electric vehicle charging infrastructure, including, but not limited to, technical assistance, demonstrations, and identification and implementation of cost-effective energy efficiency, energy storage, and electric vehicle charging infrastructure measures and programs in existing and planned buildings or facilities. An eligible institution may propose a group of multiple projects where the determination of whether the projects are cost effective shall be determined by the cost-effectiveness of those multiple projects bundled
together.
(b)CA Public Resources Code § 25410.6(b) It is further the intent of the Legislature that the commission seek the assistance of utility companies in providing energy audits for local governments and public institutions and in publicizing the availability of State Energy Conservation Assistance Account funds to qualified entities.
energy use savings energy storage systems electric vehicle charging infrastructure grants loans local governments public institutions technical assistance cost-effective energy efficiency energy audits utility companies State Energy Conservation Assistance Account financial support publicizing funding California energy programs
Section § 25411
This California law defines terms related to energy projects within schools, hospitals, local governments, and tribes. An 'allocation' is a loan for energy projects. Buildings include those with heating/cooling systems and any additions, even tribal buildings. 'Eligible institutions' are schools, hospitals, local governments, and tribes. An 'energy audit' assesses a building's energy use and suggests maintenance and improvements to save energy. 'Eligible energy measures' are installations that cut down energy use. 'Technical assistance' involves expert help in planning energy-saving projects. The law specifies various types of institutions, including public, non-profit, schools, hospitals, and their respective buildings, aiming to enhance energy efficiency through outlined measures and support.
As used in this chapter:
(a)CA Public Resources Code § 25411(a) “Allocation” means a loan of funds by the commission pursuant to the procedures specified in this chapter.
(b)CA Public Resources Code § 25411(b) “Building” means any existing or planned structure that includes a heating or cooling system, or both. Additions to an original building shall be considered part of that building rather than a separate building. “Building” includes a tribal building.
(c)CA Public Resources Code § 25411(c) “Eligible institution” means a school, hospital, public care institution, unit of local government, or tribe.
(d)CA Public Resources Code § 25411(d) “Energy audit” means a determination of the energy consumption characteristics of a building
or facility that does all of the following:
(1)CA Public Resources Code § 25411(d)(1) Identifies the type, size, and energy use level of the building or facility and the major energy using systems of the building or facility.
(2)CA Public Resources Code § 25411(d)(2) Determines appropriate eligible energy maintenance and operating procedures.
(3)CA Public Resources Code § 25411(d)(3) Indicates the need, if any, for the acquisition and installation of eligible energy measures.
(e)CA Public Resources Code § 25411(e) “Eligible energy maintenance and operating procedure” means a modification or modifications in the maintenance and operations of a building or facility, and any installations therein (based on the use time schedule of the building or facility), that are designed to reduce energy consumption in the building or facility and that require no significant expenditure of funds.
(f)CA Public Resources Code § 25411(f) “Eligible energy measure” means an installation or modification of an installation in a building or facility that is primarily intended to reduce energy consumption or peak electricity demand, or that allows the use of an eligible renewable energy resource, an energy storage system, or electric vehicle charging infrastructure.
(g)CA Public Resources Code § 25411(g) “Eligible energy project” means an undertaking to acquire and to install one or more eligible energy measures in a building or facility, and technical assistance in connection with that undertaking.
(h)CA Public Resources Code § 25411(h) “Facility” means any major energy using system of an eligible institution whether or not housed in a building.
(i)CA Public Resources Code § 25411(i) “Hospital” means a public or nonprofit institution that is both of the following:
(1)CA Public Resources Code § 25411(i)(1) A general hospital, tuberculosis hospital, or any other type of hospital, other than a hospital furnishing primarily domiciliary care.
(2)CA Public Resources Code § 25411(i)(2) Duly authorized to provide hospital services under the laws of this state.
(j)CA Public Resources Code § 25411(j) “Hospital building” means a building housing a hospital and related operations, including laboratories, laundries, outpatient departments, nurses’ home and training activities, and central service operations in connection with a hospital, and also includes a building housing education or training activities for health professions personnel operated as an integral part of a hospital.
(k)CA Public Resources Code § 25411(k) “Local government building” means a building that is primarily occupied by offices or agencies of a unit of local government or by a public care
institution.
(l)CA Public Resources Code § 25411(l) “Project” means a purpose for which an allocation may be requested and made under this chapter. Those purposes shall include energy audits, eligible energy maintenance and operating procedures, and eligible energy measures in existing and planned buildings and facilities, eligible energy projects, and technical assistance programs.
(m)CA Public Resources Code § 25411(m) “Public care institution” means a public or nonprofit institution that owns:
(1)CA Public Resources Code § 25411(m)(1) A long-term care institution.
(2)CA Public Resources Code § 25411(m)(2) A rehabilitation institution.
(3)CA Public Resources Code § 25411(m)(3) An institution for the provision of public health services, including related publicly owned services such as laboratories, clinics, and administrative offices operated in connection with
the institution.
(4)CA Public Resources Code § 25411(m)(4) A residential child care center.
(n)CA Public Resources Code § 25411(n) “Public or nonprofit institution” means an institution owned and operated by:
(1)CA Public Resources Code § 25411(n)(1) The state, a political subdivision of the state, or an agency or instrumentality of either.
(2)CA Public Resources Code § 25411(n)(2) An organization exempt from income tax under Section 501(c)(3) of the Internal Revenue Code of 1954.
(3)CA Public Resources Code § 25411(n)(3) In the case of public care institutions, an organization also exempt from income tax under Section 501(c)(4) of the Internal Revenue Code of 1954.
(o)CA Public Resources Code § 25411(o) “School” means a public or nonprofit institution, including a local educational agency, which:
(1)CA Public Resources Code § 25411(o)(1) Provides, and is legally authorized to provide, elementary education or secondary education, or both, on a day or residential basis.
(2)CA Public Resources Code § 25411(o)(2) Provides, and is legally authorized to provide, a program of education beyond secondary education, on a day or residential basis and meets all of the following requirements:
(A)CA Public Resources Code § 25411(o)(2)(A) Admits as students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of that certificate.
(B)CA Public Resources Code § 25411(o)(2)(B) Is accredited by a nationally recognized accrediting agency or association.
(C)CA Public Resources Code § 25411(o)(2)(C) Provides an education program for which it awards a bachelor’s degree or higher degree or provides not less than a two-year program that is
acceptable for full credit toward a degree at any institution that meets the requirements of subparagraphs (A) and (B) and provides that program.
(3)CA Public Resources Code § 25411(o)(3) Provides not less than a one-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provisions of paragraph (2).
(p)CA Public Resources Code § 25411(p) “School building” means a building housing classrooms, laboratories, dormitories, athletic facilities, or related facilities operated in connection with a school.
(q)CA Public Resources Code § 25411(q) “Technical assistance costs” means costs incurred for the use of existing personnel or the temporary employment of other qualified personnel, or both, necessary for providing technical assistance.
(r)CA Public Resources Code § 25411(r) “Technical assistance program” means assistance to schools,
hospitals, local government, and public care institutions and includes, but is not limited to:
(1)CA Public Resources Code § 25411(r)(1) Conducting specialized studies identifying and specifying energy savings and related cost savings that are likely to be realized as a result of:
(A)CA Public Resources Code § 25411(r)(1)(A) Modification of maintenance and operating procedures in a building or facility, in addition to those modifications implemented after the preliminary energy audit, or
(B)CA Public Resources Code § 25411(r)(1)(B) Acquisition and installation of one or more specified eligible energy measures in the building or facility, or as a result of both.
(C)CA Public Resources Code § 25411(r)(1)(C) New construction activities.
(2)CA Public Resources Code § 25411(r)(2) Planning of specific remodeling, renovation, repair, replacement, or insulation projects related to the
installation of eligible energy measures in the building or facility.
(3)CA Public Resources Code § 25411(r)(3) Developing and evaluating alternative project implementation methods and proposals.
(s)CA Public Resources Code § 25411(s) “Tribe” means a California Native American tribe located in California that is on the contact list maintained by the Native American Heritage Commission for purposes of Chapter 905 of the Statutes of 2004.
(t)CA Public Resources Code § 25411(t) “Tribal building” means a building that is owned, or primarily used, by a tribe located within or outside of Indian country, located in California, and primarily occupied by any of the following:
(1)CA Public Resources Code § 25411(t)(1) Offices or agencies of a tribe.
(2)CA Public Resources Code § 25411(t)(2) A health facility operated by a tribe in accordance with applicable federal operating
requirements.
(3)CA Public Resources Code § 25411(t)(3) Other facilities operated by a tribe that provide or promote tribal services for tribal members and the surrounding communities. Facilities may include a gaming facility or a portion of a gaming facility, to the extent the facility is used as a community emergency response center or a resource center for deenergization events, or other centralized areas for nongaming community services in designated situations.
(u)CA Public Resources Code § 25411(u) “Unit of local government” means a unit of general purpose government below the state, a special district, or any combination of that unit and special district formed for the joint exercise of power.
energy audit eligible institution energy consumption energy-saving installations technical assistance tribal buildings school buildings hospital buildings local government buildings tribes public care institution eligible energy project energy maintenance procedures renewable energy electric vehicle charging infrastructure
Section § 25412
In California, any qualified institution can apply to the relevant commission for funds to cover some or all costs associated with a project. The application must follow the guidelines set by the commission.
These funds can be used to pay for the institution's part of a project that is also getting money from state, local, or federal programs.
Any eligible institution may submit an application to the commission for an allocation for the purpose of financing all or a portion of the costs incurred in implementing a project. The application shall be in such form and contain such information as the commission shall prescribe.
An application may be for the purpose of financing the eligible institution’s share of such costs which are to be jointly funded through a state, local, or federal-local program.
eligible institution application commission project financing costs incurred joint funding state program local program federal-local program allocation funding application project costs California commissions project implementation financial allocation
Section § 25412.5
This law directs the commission to encourage and gather applications for loans that focus on three key areas: ensuring loans are available across the state, prioritizing loans for energy projects in areas with high energy demands, and targeting loans in disadvantaged communities.
The commission shall take steps to solicit loan applications to do all of the following:
(a)CA Public Resources Code § 25412.5(a) Encourage an equitable distribution of loans statewide.
(b)CA Public Resources Code § 25412.5(b) Award loans for eligible energy projects or measures in regions with high summer peak loads, with high heating costs, or that have electrical or natural gas system distribution constraints.
(c)CA Public Resources Code § 25412.5(c) Place an emphasis on offering these loans in disadvantaged communities.
energy projects loan applications equitable distribution statewide loans high summer peak loads high heating costs energy system constraints natural gas distribution electricity distribution disadvantaged communities energy efficiency financial support regional energy demands state energy policy environmental equity
Section § 25413
This section outlines that an energy project or measure can only be approved if the institution shows it will save enough on energy costs to cover the project and interest during the repayment period. Institutions can combine multiple projects to calculate total savings. The commission decides how these savings are calculated.
(a)CA Public Resources Code § 25413(a) Applications for eligible energy projects or measures may be approved by the commission only in those instances where the eligible institution has furnished information satisfactory to the commission that the costs of the project, plus interest on state funds loaned, calculated in accordance with Section 25415, will be recovered through savings in the cost of energy to the institution during the repayment period of the allocation.
(b)CA Public Resources Code § 25413(b) An eligible institution may propose to bundle multiple projects where the determination of whether the costs of the projects, plus interest on state funds loaned, will be recovered through savings during the repayment period of the allocation and shall be determined by the savings of those
multiple projects bundled together.
(c)CA Public Resources Code § 25413(c) The savings shall be calculated in a manner prescribed by the commission.
energy project approval project savings calculation repayment period loan interest recovery bundled projects eligible energy projects commission approval cost recovery energy savings state funds loaned energy savings calculation multiple project bundling project cost-effectiveness
Section § 25414
Every year, eligible institutions that get funding for energy projects have to figure out how much money they saved on energy by October 31. They need to calculate the savings in a way that the commission specifies.
Annually at the conclusion of each fiscal year, but not later than October 31, each eligible institution that has received an allocation for an eligible energy project or measures pursuant to this chapter shall compute the cost of energy saved as a result of implementing an eligible energy project or measures, or bundled projects or measures, funded by the allocation. The cost shall be calculated in a manner prescribed by the commission.
energy savings calculation eligible energy projects fiscal year conclusion energy cost savings annual reporting requirement funded energy measures commission guidelines allocation for energy projects energy project funding energy efficiency measures reporting deadline cost computation method eligible institutions bundled energy projects
Section § 25415
This law requires institutions that received funding for energy projects to pay back the principal and interest in up to 40 equal payments twice a year, following a schedule set by the commission. The repayment period can't be longer than the equipment's lifespan or the lease term where the project is installed.
The commission sets the interest rates based on financial market surveys, and zero-interest loans may be allowed. Each institution's governing body must budget enough annually to cover these payments, which must come from energy cost savings or other non-tax sources.
(a)CA Public Resources Code § 25415(a) Each eligible institution to which an allocation has been made under this chapter shall repay the principal amount of the allocation, plus interest, in not more than 40 equal semiannual payments, as determined by the commission. Loan repayments shall be made in accordance with a schedule established by the commission. The repayment period shall not exceed the life of the equipment, as determined by the commission or the lease term of the building in which the eligible energy, energy storage, or electric vehicle charging infrastructure project or measures will be installed.
(b)CA Public Resources Code § 25415(b) Notwithstanding any other law, the commission shall, unless it determines that the purposes of this chapter would be better served by establishing an alternative interest rate schedule,
periodically set interest rates on the loans based on surveys of existing financial markets and may authorize no-interest loans.
(c)CA Public Resources Code § 25415(c) The governing body of each eligible institution shall annually budget an amount at least sufficient to make the semiannual payments required in this section. For an eligible energy project or measures, the amount shall not be raised by the levy of additional taxes but shall instead be obtained by a savings in energy costs or other sources.
energy projects repayment semiannual payments loan interest rates energy savings no-interest loans equipment lifespan financial markets survey eligible institutions principal repayment budgeting for loan repayment energy cost savings commission's schedule electric vehicle charging infrastructure loan allocation repayment building lease term
Section § 25416
This law establishes the State Energy Conservation Assistance Account, which is used to support energy conservation projects and services in California. The account is continuously funded and managed by the state's energy commission.
The funds are used for services like feasibility studies and project design, with a cap of 10% of the account's balance for services and 5% for grants. The commission can charge fees for these services. The funds can also be loaned to the General Fund if necessary.
Two subaccounts are created: one for state building projects funded by the Greenhouse Gas Reduction Fund and another for tribal projects. Loans from these subaccounts are tracked for their awards and repayments. The commission has the flexibility to transfer funds between the main account and subaccounts as needed.
(a)CA Public Resources Code § 25416(a) The State Energy Conservation Assistance Account is hereby created in the General Fund. Notwithstanding Section 13340 of the Government Code, the account is continuously appropriated to the commission without regard to fiscal year.
(b)CA Public Resources Code § 25416(b) The moneys in the account shall consist of all moneys authorized or required to be deposited in the account by the Legislature and all moneys received by the commission pursuant to Sections 25414 and 25415.
(c)CA Public Resources Code § 25416(c) The moneys in the account shall be disbursed by the Controller for the purposes of this chapter as authorized by the commission.
(d)CA Public Resources Code § 25416(d) The commission may contract and provide grants for services to
be performed for eligible institutions. Services may include, but are not limited to, feasibility analysis, project design, field assistance, and operation and training. The amount expended for those services shall not exceed 10 percent of the unencumbered balance of the account as determined by the commission on July 1 of each year.
(e)CA Public Resources Code § 25416(e) The commission may make grants to eligible institutions for innovative projects and programs. Except as provided in subdivision (d), the amount expended for grants shall not exceed 5 percent of the annual unencumbered balance in the account as determined by the commission on July 1 of each fiscal year.
(f)CA Public Resources Code § 25416(f) The commission may charge a fee for the services provided under subdivision (d).
(g)CA Public Resources Code § 25416(g) Notwithstanding any other law, the Controller may use the State Energy Conservation Assistance
Account for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code.
(h)Copy CA Public Resources Code § 25416(h)
(1)Copy CA Public Resources Code § 25416(h)(1) A subaccount is hereby created within the State Energy Conservation Assistance Account to track the award and repayment of loans, including principal, interest, and interest earnings on or accruing to the subaccount, made with moneys transferred to the account from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code. Notwithstanding Section 13340 of the Government Code, the moneys in the subaccount are hereby continuously appropriated to the commission without regard to fiscal year.
(2)CA Public Resources Code § 25416(h)(2) Moneys deposited in the subaccount may be used for loans only for projects in buildings owned and operated by a state agency or entity, including, without limitation, the University of California and California State
University.
(3)CA Public Resources Code § 25416(h)(3) Notwithstanding Section 39718 of the Health and Safety Code, a repayment of a loan made pursuant to this chapter with moneys transferred from the Greenhouse Gas Reduction Fund shall be deposited in the subaccount and shall be available for a loan made to an entity eligible for these moneys pursuant to this subdivision.
(i)Copy CA Public Resources Code § 25416(i)
(1)Copy CA Public Resources Code § 25416(i)(1) A subaccount is hereby created in the State Energy Conservation Assistance Account to track the award and repayment of loans to tribes, including principal, interest, and interest earnings on or accruing to the subaccount. Notwithstanding Section 13340 of the Government Code, the moneys in the subaccount are continuously appropriated to the commission without regard to fiscal year.
(2)CA Public Resources Code § 25416(i)(2) Moneys deposited in the subaccount shall be used for loans only to
tribes.
(3)CA Public Resources Code § 25416(i)(3) The commission may transfer moneys from the account to provide funding for the subaccount or transfer moneys from the subaccount to the account.
energy conservation funding allocation project design feasibility analysis greenhouse gas reduction state buildings tribal projects fund transfers loan tracking grant limitations commission authority service fees General Fund loans state universities emissions reduction projects
Section § 25417
When funds are given out under this chapter, they must be used exactly for the purposes listed in the approved application. If funds are used for something else, the commission will ask for all the money back, and the institution that received the funds has to return it right away.
(a)CA Public Resources Code § 25417(a) An allocation made pursuant to this chapter shall be used for the purposes specified in an approved application.
(b)CA Public Resources Code § 25417(b) In the event that the commission determines that an allocation has been expended for purposes other than those specified in an approved application, it shall immediately request the return of the full amount of the allocation. The eligible institution shall immediately comply with such request.
allocation use approved application fund misuse commission authority fund return eligibility compliance misallocation consequences financial accountability institution fund management approved purposes immediate fund recovery funding oversight project funding requirements institutional compliance misused allocation
Section § 25417.5
This law section gives the commission several financial powers to support its purpose, including borrowing money and pledging collateral. The commission can get funds by borrowing from certain California financing authorities and pledge loans or loan payments as collateral to secure these funds. The commission may also sell loans at their discretion to raise money to lend to eligible institutions. In addition, they can enter into necessary contracts in connection with pledging or selling loans, and employ financial or legal experts for assistance. Lastly, this law provides a complete and supplemental method for the commission's financial activities, which can be used alongside other laws.
(a)CA Public Resources Code § 25417.5(a) In furtherance of the purposes of the commission as set forth in this chapter, the commission has the power and authority to do all of the following:
(1)CA Public Resources Code § 25417.5(a)(1) Borrow money, for the purpose of obtaining funds to make loans pursuant to this chapter, from the California Economic Development Financing Authority, the California Infrastructure and Economic Development Bank, and the California Consumer Power and Conservation Financing Authority from the proceeds of revenue bonds issued by any of those agencies.
(2)CA Public Resources Code § 25417.5(a)(2) Pledge collateral to secure the repayment of moneys borrowed pursuant to paragraph (1) or of bonds or other borrowings by the California Infrastructure and Economic Development Bank. The commission may pledge, as collateral for these purposes, the loans made pursuant to this chapter or former Chapter 5.4 (commencing with Section 25440) or the principal and interest payments on loans made pursuant to this chapter or former Chapter 5.4 (commencing with Section 25440). These pledges shall be subject to Chapter 5.5 (commencing with Section 5450) of Division 6 of Title 1 of the Government Code.
(3)CA Public Resources Code § 25417.5(a)(3) Sell loans made pursuant to this chapter or former Chapter 5.4 (commencing with Section 25440), at prices determined in the sole discretion of the commission, to the California Economic
Development Financing Authority, the California Infrastructure and Economic Development Bank, and the California Consumer Power and Conservation Financing Authority to raise funds to enable the commission to make loans to eligible institutions.
(4)CA Public Resources Code § 25417.5(a)(4) Enter into loan agreements or other contracts necessary or appropriate in connection with the pledge or sale of loans pursuant to paragraph (2) or (3), or the borrowing of money as provided in paragraph (1), containing any provisions that may be required by the California Economic Development Financing Authority, the California Infrastructure and Economic Development Bank, or the California Consumer Power and Conservation Financing Authority as conditions of issuing bonds to fund loans to, or the purchase of loans from, the commission.
(b)CA Public Resources Code § 25417.5(b) In connection with the pledging of loans, or of the principal and interest payment on loans,
pursuant to paragraph (2) of subdivision (a), the commission may enter into pledge agreements setting forth the terms and conditions pursuant to which the commission is pledging loans or the principal and interest payment on loans, including the pledging of loans or the principal and interest payment on loans as collateral to secure the repayment of bonds or other borrowings by the California Infrastructure and Economic Development Bank, and may also agree to have the loans held by bond trustees or by independent collateral or escrow agents and to direct that payments received on those loans be paid to those trustee, collateral, or escrow agents.
(c)CA Public Resources Code § 25417.5(c) The commission may employ financial consultants, legal advisers, accountants, and
other service providers, as may be necessary in its judgment, in connection with activities pursuant to this chapter.
(d)CA Public Resources Code § 25417.5(d) Notwithstanding any other provision of law, this chapter provides a complete, separate, additional, and alternative method for implementing the measures authorized by this chapter, including the authority of the eligible institutions or local jurisdictions to have borrowed and to borrow in the future pursuant to loans made pursuant to this chapter or former Chapter 5.4 (commencing with Section 25440), and is supplemental and additional to powers conferred by other laws.
borrow money pledge collateral sell loans California Economic Development Financing Authority California Infrastructure and Economic Development Bank California Consumer Power and Conservation Financing Authority revenue bonds loan agreements loan collateral financial consultants legal advisers complete method alternative method eligible institutions escrow agents
Section § 25418
This law allows the Department of Finance to decide if they want to audit how funds are spent or calculated according to certain parts of this chapter, including specific payments mentioned in Section 25415.
The Department of Finance, at its discretion, may audit the expenditure of any allocation made pursuant to this chapter or the computation of any payment made pursuant to Section 25415.
Department of Finance auditing expenditure audit allocation audit funds expenditure payment computation Section 25415 discretionary audit financial oversight budget review public funds management allocation verification government spending accountability financial audit process audit authority allocation compliance
Section § 25419
This law section gives the commission additional powers besides those already granted in the chapter. It allows the commission to set qualifications and priorities for how resources are allocated, as long as they align with the chapter's goals. It also lets the commission create whatever procedures and policies are needed to manage the chapter effectively.
In addition to the powers specifically granted to the commission by the other provisions of this chapter, the commission shall have the following powers:
(a)CA Public Resources Code § 25419(a) To establish qualifications and priorities, consistent with the objectives of this chapter, for making allocations.
(b)CA Public Resources Code § 25419(b) To establish such procedures and policies as may be necessary for the administration of this chapter.
commission powers resource allocation establish qualifications priorities for allocation administration procedures policy establishment chapter objectives allocation priorities procedure creation policy management resource management administration policies decision-making authority allocation management goals alignment
Section § 25420
This law allows the commission to use up to 5% of the leftover funds in the State Energy Conservation Assistance Account each year to cover its administrative expenses. This percentage is based on the account's balance as of July 1 each fiscal year and is meant to support the commission's efforts in managing funds according to this chapter.
The commission may expend from the State Energy Conservation Assistance Account an amount to pay for the actual administrative costs incurred by the commission pursuant to this chapter. The amount shall not exceed 5 percent of the annual unencumbered balance in the account as determined by the commission on July 1 of each fiscal year, to be used to defray costs incurred by the commission for allocations made by the commission pursuant to this chapter.
State Energy Conservation Assistance Account administrative costs 5 percent limit fiscal year unencumbered balance fund management commission expenses energy conservation funds July 1 determination allocation costs
Section § 25421
This law states that the chapter will expire on January 1, 2028, unless extended by a new law. Existing loans as of that date must continue to be repaid semiannually until fully paid off. Any leftover funds in the State Energy Conservation Assistance Account will revert to the General Fund, except for specific cases. Funds from bond proceeds tied to Section 25417.5 will stay in the account and be used according to bond requirements until all obligations are met. Afterward, these funds will also move to the General Fund. Likewise, any unspent money from the federal American Recovery and Reinvestment Act of 2009 will go back to the Federal Trust Fund on and after January 1, 2028.
(a)CA Public Resources Code § 25421(a) Except as provided in subdivision (b), this chapter shall remain in effect only until January 1, 2028, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2028, deletes or extends that date.
(b)CA Public Resources Code § 25421(b) Except as specified in subdivisions (c) and (d), all loans outstanding as of January 1, 2028, shall continue to be repaid on a semiannual basis, as specified in Section 25415, until paid in full. All unexpended funds in the State Energy Conservation Assistance Account on January 1, 2028, and after that date, shall revert to the General Fund.
(c)CA Public Resources Code § 25421(c) To the extent required under applicable
bond obligations, unexpended funds from the proceeds of bonds sold pursuant to Section 25417.5 that remain in the State Energy Conservation Assistance Account on January 1, 2028, shall remain in the account. These funds shall be expended pursuant to the applicable requirements for bond proceeds. Once all applicable bond obligations have been satisfied, unexpended funds shall revert to the General Fund.
(d)CA Public Resources Code § 25421(d) Unexpended funds from the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5) remaining in the State Energy Conservation Assistance Account on January 1, 2028, shall revert to the Federal Trust Fund.
State Energy Conservation Assistance Account loan repayment semiannual payment unexpended funds General Fund bond obligations bond proceeds Section 25417.5 Federal Trust Fund American Recovery and Reinvestment Act chapter expiration January 1 2028 reversion of funds funds management federal funds
Section § 25422
This law explains how the California commission can use federal funds from specific federal acts to boost funding for energy-related grants and loans. If these federal funds are used for loans and later repaid, the repayments will go to a special state account meant for energy conservation loans. A dedicated subaccount will track federal loan activities to ensure transparency, especially concerning the federal American Recovery and Reinvestment Act of 2009. Even though funds are allocated for loans, they can also be used for various energy projects authorized by federal acts, including renewable energy and conservation projects. Finally, the law mandates the commission to transfer remaining funds annually from this subaccount to another state fund dedicated to energy efficiency on state properties.
(a)CA Public Resources Code § 25422(a) Federal funds available to the commission pursuant to Chapter 5.6 (commencing with Section 25460) may be used by the commission to augment funding for grants and loans pursuant to this chapter. Any federal funds used for loans shall, when repaid, be deposited into the State Energy Conservation Assistance Account and used to make additional loans pursuant to this chapter.
(b)CA Public Resources Code § 25422(b) A separate subaccount shall be established within the State Energy Conservation Assistance Account to track the award and repayment of loans from federal funds, including any interest earnings, in accordance with the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
(c)CA Public Resources Code § 25422(c) Notwithstanding subdivision (a), the commission may use loan repayments and all interest earnings on or accruing in the subaccount established pursuant to subdivision (b) for energy efficiency, energy conservation, renewable energy, and other energy-related projects and activities authorized by the federal American Recovery and Reinvestment Act of 2009 or subsequent federal acts related to the federal American Recovery and Reinvestment Act of 2009. Unless prohibited by the federal American Recovery and Reinvestment Act of 2009, the commission may augment funding for any programs and measures authorized by this division.
(d)CA Public Resources Code § 25422(d) The commission shall transfer to the Energy Efficient State Property Revolving Fund, established pursuant to Section 25471, the moneys remaining in the subaccount established pursuant to subdivision (b), including loan repayments and interest earnings that are
deposited in the subaccount. The commission shall transfer the moneys not more frequently than annually and in an amount based on the balance in the subaccount at the time of transfer.
federal funds energy conservation grants and loans State Energy Conservation Assistance Account loan repayments American Recovery and Reinvestment Act renewable energy projects energy efficiency subaccount tracking interest earnings energy-related projects California commission energy activities fund allocation Energy Efficient State Property Revolving Fund
