Federal Funding Of Energy-related Projects And State Energy Programs - - CA Public Resources

Section § 25460

This section explains that the California Legislature acknowledges the American Recovery and Reinvestment Act of 2009, which allocates funds for energy programs run by the commission. The Legislature also intends for the commission to quickly give out contracts, grants, and loans using these funds.

(a) The Legislature finds and declares that the 111th Congress enacted the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) that appropriates funds for various energy programs administered by the commission.

(b) It is the intent of the Legislature that the commission should have the authority to award contracts, grants, and loans from funds received pursuant to the American Recovery and Reinvestment Act of 2009 and to make the awards as expeditiously as possible.

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(Added by Stats. 2009, 4th Ex. Sess., Ch. 11, Sec. 22. Effective July 28, 2009.)

Section § 25461

This law assigns a commission the responsibility to manage federal funds given to California for energy projects related to the American Recovery and Reinvestment Act of 2009. This includes using these funds for various energy-related activities, such as improving energy efficiency, conserving energy, and supporting renewable energy projects through contracts, grants, or loans.

(a) Except as provided in Chapter 5.5 (commencing with Section 25450), the commission shall administer federal funds allocated to, and received by, the state for energy-related projects pursuant to the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or federal acts related to the American Recovery and Reinvestment Act of 2009.

(b) Unless otherwise prohibited by the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or subsequent federal acts related to the American Recovery and Reinvestment Act of 2009, the commission may use the federal funds to award contracts, grants, and loans, including loan guarantees, loan loss reserves, and credit enhancements, for energy efficiency, energy conservation, renewable energy, and other energy-related projects and activities authorized by the American Recovery and Reinvestment Act of 2009 or subsequent federal acts related to the American Recovery and Reinvestment Act of 2009.

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(Amended by Stats. 2010, Ch. 718, Sec. 17. (SB 855) Effective October 19, 2010.)

Section § 25462

This section allows a commission to create guidelines for how funding is awarded, who is eligible, and how it’s managed, as long as this is done at a public meeting where people can comment. The commission must give a 30-day notice before first adopting guidelines and a 15-day notice before making significant changes. These guidelines don't have to follow the usual government rule-making process. Also, if grants or loans are given out unfairly, people can appeal to the commission if they believe the decision was based on different factors than those in the guidelines.

(a) The commission may adopt guidelines governing the award, eligibility, and administration of funding pursuant to this chapter at a publicly noticed meeting offering all interested parties an opportunity to comment. The commission shall provide written public notice of not less than 30 days for the initial adoption of guidelines. Substantive changes to the guidelines shall not be adopted without 15-day written notice to the public. Notwithstanding any other provision of law, any guidelines adopted pursuant to this chapter shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(b) Grants and loans made pursuant to this chapter are subject to appeal to the commission upon a showing that factors other than those described in the guidelines adopted by the commission were applied in making the awards and payments.

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(Added by Stats. 2009, 4th Ex. Sess., Ch. 11, Sec. 22. Effective July 28, 2009.)

Section § 25463

This law allows the California commission to use federal funds from the American Recovery and Reinvestment Act of 2009 to support programs covered by this division, unless the Act specifically prohibits it. The commission can manage these funds according to the rules of the respective programs, as long as it's in line with federal law.

The law encourages a broad interpretation to make the most out of federal funds quickly and in line with federal guidelines. Specifically, $2.5 million from these funds are allocated for specific purposes detailed in another section, with a competitive process for project funding starting by February 1, 2017. An additional $2.5 million will be continually available each year until all the federal relief money is used.

(a) Notwithstanding any other provision of this division, federal funds available to the commission pursuant to this chapter may be used by the commission to augment funding for any programs or measures authorized by this division unless otherwise prohibited by the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). The commission may administer any funds used to augment other programs using the procedures of the augmented program consistent with applicable federal law.

(b) This section shall be liberally construed to maximize the commission’s ability to utilize and award federal funds expeditiously and in accordance with the American Recovery and Reinvestment Act of 2009 or federal acts related to the American Recovery and Reinvestment Act of 2009.

(c)

(1) Of the moneys appropriated to the commission in the 2016–17 fiscal year from the moneys derived from the American Recovery and Reinvestment Act of 2009 in the Federal Trust Fund for purposes authorized by Section 25461, the sum of two million five hundred thousand dollars ($2,500,000) is hereby allocated for purposes consistent with subdivision (l) of Section 3823. No later than February 1, 2017, the commission shall issue a competitive solicitation for projects pursuant to subdivision (l) of Section 3823 to be funded from this allocation.

(2) Notwithstanding Section 13340 of the Government Code, for the 2017–18 fiscal year and each fiscal year thereafter until all moneys in the Federal Trust Fund derived from the American Recovery and Reinvestment Act of 2009 have been encumbered or expended, the sum of two million five hundred thousand dollars ($2,500,000) annually is hereby continuously appropriated to the commission for the purposes authorized by Section 25461.

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(Amended by Stats. 2016, Ch. 539, Sec. 2. (SB 1074) Effective January 1, 2017.)

Section § 25464

This law establishes a program in California for providing low-interest loans to businesses involved in clean and renewable energy manufacturing. The program is funded by the Clean and Renewable Energy Business Financing Revolving Loan Fund, which uses federal and other sources of funding.

The commission can collaborate with state agencies and has the authority to manage the funds, including collecting application fees, creating necessary accounts, and managing loan transactions. Loan repayments and interest are returned to the fund to support further lending.

The law also allows using these funds for other energy projects permitted under the federal American Recovery and Reinvestment Act. Repaid loans funded by this federal act must periodically be transferred to another state fund dedicated to energy efficiency in state properties.

(a) For purposes of this section, the following definitions apply:

(1) “Fund” means the Clean and Renewable Energy Business Financing Revolving Loan Fund.

(2) “Program” means the Clean and Renewable Energy Business Financing Revolving Loan Program.

(b)

(1) The commission may use federal funds available pursuant to this chapter to implement the Clean and Renewable Energy Business Financing Revolving Loan Program to provide low interest loans to California clean and renewable energy manufacturing businesses.

(2) The commission may use other funding sources to leverage loans awarded under the program.

(c) The commission may work directly with the Governor’s Office of Business and Economic Development, the Treasurer, or any other state agency, board, commission, or authority to implement and administer the program, and may contract for private services as needed to implement the program.

(d) The commission may collect an application fee from applicants applying for funding under the program to help offset the costs of administering the program.

(e)

(1) The Clean and Renewable Energy Business Financing Revolving Loan Fund is hereby established in the State Treasury to implement the program. The commission is authorized to administer the fund for this purpose. Notwithstanding Section 13340 of the Government Code, the money in the fund is continuously appropriated to the commission, without regard to fiscal years, to implement the program.

(2) Upon direction by the commission, the Controller shall create any accounts or subaccounts within the fund that the commission determines are necessary to facilitate management of the fund.

(3) The Controller shall disburse and receive moneys in the fund for purposes of the program and as authorized by the commission.

(4) All loans and repayments of loans made pursuant to this section, including interest payments, penalty payments, and all interest earning on or accruing to any moneys in the fund, shall be deposited in the fund and shall be available for the purposes of this section.

(5) The commission may expend up to 5 percent of moneys in the fund for its administrative costs to implement the program.

(f) Federal funds available to the commission pursuant to this chapter shall be transferred to the fund in the loan amounts when loans are awarded under the program by the commission.

(g) Notwithstanding paragraph (4) of subdivision (e), the commission may use loan repayments and all interest earnings on or accruing in the fund 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.

(h) The commission shall transfer to the Energy Efficient State Property Revolving Fund established pursuant to Section 25471 repayments of, and all accrued interest on, loans funded by the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5) pursuant to this section. The commission shall transfer the moneys not more frequently than annually and in an amount based on the balance in the fund at the time of transfer.

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(Amended by Stats. 2015, Ch. 24, Sec. 35. (SB 83) Effective June 24, 2015.)