Today's Law As Amended

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AB-811 Contractual assessments: energy efficiency improvements.(2007-2008)



SECTION 1.

 Section 5898.12 of the Streets and Highways Code is amended to read:

5898.12.
 (a) It is the intent of the Legislature that this chapter should be used to finance public improvements to lots or parcels that which  are developed and where the costs and time delays involved in creating an assessment district pursuant to other provisions of this division or any other law would be prohibitively large relative to the cost of the public improvements to be financed.
(b) It is also the intent of the Legislature that this chapter should be used to finance the installation or prepaid service contract, or both,  of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to residential, commercial, industrial, agricultural,  or other real property.
(c) It is also the intent of the Legislature to address chronic water needs throughout California by permitting voluntary individual efforts to improve water efficiency. The Legislature further intends that this chapter should be used to finance the installation of water efficiency improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property, including, but not limited to, recycled water connections, synthetic turf, cisterns for stormwater recovery, and permeable pavement.
(d) It is also the intent of the Legislature that a public agency in the process of establishing an assessment program, to the extent feasible, use a good faith effort to provide advance notice of the proposed program to water and electric service providers in the relevant service area, as set forth in Section 5898.24, to allow the most efficient coordination and collaboration between the public agency and water and electric service providers.
(e) (c)  This chapter shall not be used to finance facilities for parcels in connection with the initial construction of a residential building, unless the initial construction is undertaken by the intended owner or occupant. which are undergoing development. 
(f) (d)  This chapter shall not be used to finance the purchase or installation of appliances that are not permanently fixed to residential, commercial, industrial, agricultural,  or other real property.
(g) (e)  Assessments may be levied pursuant to this chapter only with the free and willing consent of the owner of each lot or parcel on which an assessment is levied at the time the assessment is levied.

SEC. 2.

 Section 5898.14 is added to the Streets and Highways Code, to read:

5898.14.
 (a) The Legislature finds all of the following:
(1) Energy conservation efforts, including the promotion of energy efficiency improvements to residential, commercial, industrial, or other real property are necessary to address the issue of global climate change.
(2) The upfront cost of making residential, commercial, industrial, or other real property more energy efficient prevents many property owners from making those improvements. To make those improvements more affordable and to promote the installation of those improvements, it is necessary to authorize an alternative procedure for authorizing assessments to finance the cost of energy efficiency improvements.
(b) The Legislature declares that a public purpose will be served by a contractual assessment program that provides the legislative body of any city with the authority to finance the installation of distributed generation renewable energy sources and energy efficiency improvements that are permanently fixed to residential, commercial, industrial, or other real property.

SEC. 3.

 Section 5898.20 of the Streets and Highways Code is amended to read:

5898.20.
 (a) (1) The legislative body of any public agency  city  may determine that it would be convenient and advantageous to designate an area within the public agency,  city,  which may encompass the entire public agency  city  or a lesser portion, within which authorized public agency  city  officials and property owners may enter into voluntary  contractual assessments for public improvements and to make financing arrangements pursuant to this chapter.
(2) The legislative body of any public agency  city  may also determine that it would be convenient, advantageous, and in the public interest to designate an area within the public agency,  city,  which may encompass the entire public agency  city  or a lesser portion, within which authorized public agency  city  officials and property owners may enter into voluntary  contractual assessments to finance the installation of distributed generation renewable energy sources or energy or water  efficiency improvements that are permanently fixed to real property pursuant to this chapter.
(b) The legislative body shall make these determinations by adopting a resolution indicating its intention to do so. The resolution of intention shall include a statement that the public agency  city  proposes to make voluntary  contractual assessment financing available to property owners, shall identify the kinds of public works, distributed generation renewable energy sources, or energy or water  efficiency improvements that may be financed, shall describe the boundaries of the area within which voluntary  contractual assessments may be entered into, and shall briefly describe the proposed arrangements for financing the program, including a brief description of criteria for determining the creditworthiness of a property owner.  program.  The resolution of intention shall state that it is in the public interest to finance the installation of distributed generation renewable energy sources or energy or water  efficiency improvements, or both, pursuant to paragraph (2) of subdivision (a), if applicable. The resolution shall state that a public hearing should be held at which interested persons may object to or inquire about the proposed program or any of its particulars, and shall state the time and place of the hearing. The resolution shall direct an appropriate public agency  city  official to prepare a report pursuant to Section 5898.22 and to enter into consultations with the county auditor’s office or county controller’s office in order to reach agreement on what additional fees, if any, will be charged to the city or county for incorporating the proposed voluntary  contractual assessments into the assessments of the general taxes of the city or county on real property.
(c) As used in this chapter, each of the following terms shall have  has  the following meaning:
(1) “Efficiency improvements” means permanent improvements fixed to residential, commercial, industrial, agricultural, or other real property. Notwithstanding Section 5005, “city” means a city, county, or city and county. 
(2) “Legislative body” means the governing body of a public agency. has the same meaning as defined in Section 5006. 
(3) (A) For the purpose of financing the installation of water efficiency improvements, “public agency” means a city, county, city and county, municipal utility district, community services district, sanitary district, sanitation district, or water district, as defined in Section 20200 of the Water Code. The definition of “city” in Section 5005 shall not apply to this subparagraph.
(B) For the purpose of financing the installation of distributed generation renewable energy sources or energy efficiency improvements, “public agency” means a county, city, city and county, or a municipal utility district, an irrigation district, or public utility district that owns and operates an electric distribution system. The definition of “city” in Section 5005 shall not apply to this subparagraph.
(C) For the purpose of financing the public improvements, “public agency” means a city as defined in Section 5005.

SEC. 4.

 Section 5898.21 is added to the Streets and Highways Code, to read:

5898.21.
 Notwithstanding any other provision of this chapter, upon the written consent of an authorized city official, the proposed arrangements for financing the program pertaining to the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property may authorize the property owner to purchase directly the related equipment and materials for the installation of distributed generation renewable energy sources or energy efficiency improvements and to contract directly for the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to the property owner’s residential, commercial, industrial, or other real property.

SEC. 5.

 Section 5898.22 of the Streets and Highways Code is amended to read:

5898.22.
 The report shall contain all of the following:
(a) A map showing the boundaries of the territory within which voluntary  contractual assessments are proposed to be offered.
(b) A draft contract specifying the terms and conditions that would be agreed to by a property owner within the voluntary  contractual assessment area and the public agency. city. 
(c) A statement of public agency  city  policies concerning voluntary  contractual assessments including all of the following:
(1) Identification of types of facilities, distributed generation renewable energy sources, or energy or water  efficiency improvements that may be financed through the use of contractual assessments.
(2) Identification of a public agency  city  official authorized to enter into voluntary  contractual assessments on behalf of the public agency. city. 
(3) A maximum aggregate dollar amount of voluntary  contractual assessments.
(4) A method for setting requests from property owners for financing through voluntary  contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount.
(d) A plan for raising a capital amount required to pay for work performed pursuant to voluntary  contractual assessments. The plan may include amounts to be advanced by the public agency  city  through funds available to it from any source. The plan may include the sale of a bond or bonds or other financing relationship pursuant to Section 5898.28. The plan shall include a statement of or method for determining the interest rate and time period during which contracting property owners would pay any assessment. The plan shall provide for any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the voluntary  contractual assessment program among the consenting property owners and the public agency. city. 
(e) A report on the results of the consultations with the county auditor’s office or county controller’s office concerning the additional fees, if any, that will be charged to the city or county for incorporating the proposed voluntary  contractual assessments into the assessments of the general taxes of the city or county on real property, and a plan for financing the payment of those fees.

SEC. 6.

 Section 5898.30 of the Streets and Highways Code is amended to read:

5898.30.
 Assessments levied pursuant to this chapter, and the interest and any penalties thereon shall constitute a lien against the lots and parcels of land on which they are made, until they are paid. Division 10 (commencing with Section 8500), insofar as those provisions are not in conflict with this chapter, Article 13 (commencing with Section 53930) of, and Article 13.5 (commencing with Section 53938) of, Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code apply to the imposition and collection of assessments contracted for pursuant to  8500) applies to the levy and collection of assessments levied pursuant to this chapter, insofar as those provisions are not in conflict with the provisions of  this chapter, including, but not limited to, provisions related to lien priority,  the collection of assessments in the same manner and at the same time as the general taxes of the city or county on real property, unless another procedure has been authorized by the legislative body or by statute,  on real property are payable  and any penalties and remedies and lien priorities  in the event of delinquency and default.
SEC. 7.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order for legislative bodies of cities and free and willing property owners to enter into contractual assessments to finance the installation of distributed generation renewable energy sources or energy efficiency improvements and for the state to begin to experience the effects of these contractual assessments, such as saving millions of kilowatthours, as early as this summer when usage is the highest, it is necessary that this act take effect immediately.