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AB-485 Greenhouse gases.(2011-2012)

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AB485:v96#DOCUMENT

Amended  IN  Senate  August 24, 2012
Amended  IN  Senate  June 29, 2011
Amended  IN  Assembly  May 05, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 485


Introduced  by  Assembly Member Ma
(Coauthor(s): Senator Wolk)

February 15, 2011


An act to amend Sections 53395.1 53395.3, 53395.10, 53395.11, 53395.12, 53395.14, 53395.19, 53395.20, 53396, 53397.1, and 53397.2 of, and to add Sections 53395.7.5 and 65460.2.5 to, the Government Code Section 748.5 of the Public Utilities Code, relating to
Under the Public Utilities Act, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations. A violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Existing law requires the commission, except as provided, to require revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electric utilities to be credited directly to the residential, small business, public transportation agency, and emissions-intensive trade-exposed retail customers of the electrical corporation.
This bill would also require the revenues to be credited to public transportation agency customers, and would define “public transportation agency” for that purpose.

(1)The Transit Village Development Planning Act of 1994 authorizes a city or county to create a transit village plan for a transit village development district that addresses specified characteristics. Existing law authorizes the legislative body of the city or county to adopt an infrastructure financing plan, create an infrastructure financing district, and issue bonds for which only the district is liable, to finance specified public facilities, upon voter approval.

This bill would eliminate the requirement of voter approval for the adoption of an infrastructure financing plan, the creation of an infrastructure financing district, and the issuance of bonds with respect to a transit village development district. The bill would require a city or county that uses infrastructure financing district bonds to finance its transit village development district to use at least 20% of the revenue from those bonds for the purposes of increasing, improving, and preserving the supply of lower and moderate-income housing; to require that those housing units remain available and occupied by moderate-, low-, very low, and extremely low income households for at least 55 years for rental units and 45 years for owner-occupied units; and to rehabilitate, develop, or construct for rental or sale to persons and families of low or moderate income an equal number of replacement dwellings to those removed or destroyed from the low- and moderate-income segment of the housing market as a result of the development of the district, as specified. The bill would set forth the findings and declarations of the Legislature, and the intent of the Legislature that the development of transit village development districts be environmentally conscious and sustainable, and that related construction meet or exceed the requirements of the California Green Building Standards Code.

(2)Existing law prohibits the legislative body of a city or county from enacting a resolution proposing the formation of an infrastructure finance district and providing for the division of taxes of any affected taxing entity unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to the division of taxes has been filed with the legislative body at or prior to the time of the hearing.

This bill would require, in the case of an affected taxing entity that is a special district that provides fire protection services and where the county board of supervisors is the governing authority or has appointed itself as the governing board of the district, that the proposed infrastructure financing district plan be adopted by a separate resolution approved by the special district’s governing authority or board.

This bill would also eliminate the requirement of voter approval and authorize the legislative body to create the district, adopt the plan, and issue the bonds by resolutions.

(3)Existing law requires that an infrastructure financing plan created by a legislative body to include a date on which the infrastructure finance district will cease to exist, which shall not be more than 30 years from the date on which the ordinance forming the district is adopted.

This bill instead would specify that the date on which the infrastructure finance district would cease to exist would not be more than 40 years from the date on which the legislative body adopted the resolution adopting the infrastructure financing plan.

The bill would also impose additional reporting requirements after the adoption of an infrastructure financing plan.

Because a violation of a requirement of the commission is a crime. This bill would impose a State-mandated local program by changing the definition of a crime.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 748.5 of the Public Utilities Code is amended to read:

748.5.
 (a) Except as provided in subdivision (c), the commission shall require revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electric utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations to be credited directly to the residential, small business, and public transportation agency, and emissions-intensive trade-exposed retail customers of the electrical corporation. As used in this subdivision, “public transportation agency” means a public agency that provides public transportation as defined in subparagraph (A) of paragraph (1) of subdivision (f) of Section 1 of Article XIX A of the California Constitution.
(b) Not later than January 1, 2013, the commission shall require the adoption and implementation of a customer outreach plan for each electrical corporation, including, but not limited to, such measures as notices in bills and through media outlets, for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. Costs associated with the implementation of this plan are subject to recovery in rates pursuant to Section 454.
(c) The commission may allocate up to 15 percent of the revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations, for clean energy and energy efficiency projects established pursuant to statute that are administered by the electrical corporation and that are not otherwise funded by another funding source.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.

(a)The Legislature finds and declares all of the following:

(1)Federal, state, and local governments in California are investing in new and expanded transit systems in areas throughout the state, including Los Angeles County, the San Francisco Bay area, San Diego County, Santa Clara County, and Sacramento County.

(2)This public investment in transit is unrivaled in the state’s history and represents well over ten billion dollars ($10,000,000,000) in planned investment alone.

(3)Recent studies of transit ridership in California indicate that people who live within a one-half mile radius of transit stations utilize the transit system in far greater numbers than does the general public living elsewhere.

(4)The planning strategy of clustering housing and commercial development around transit stations, and the creation of transit villages pursuant to that strategy, has gained momentum in recent years.

(5)Only a few transit stations in California have any concentration of housing in close proximity to the station.

(6)The greater use of public transit facilitated by the development of transit villages improves local street, road, and highway congestion by providing viable alternatives to automobile use.

(7)The development of transit village development districts can improve environmental conditions by increasing the use of public transit, facilitating the creation of and improvements to walkable, mixed-use communities, and decreasing automobile use.

(8)Transit-oriented development can improve local and regional economies by providing appropriate commercial and residential development opportunities, including investment in local transit village development, job creation through the construction of related facilities, and job creation through employment opportunities associated with related entertainment, retail, residential, and other mixed-use development.

(9)Facilitating the use of infrastructure financing districts for transit village development could provide local jurisdictions with a cost-effective tool for pursuing transit-oriented development projects.

(10)Tax-increment financing of transit village development districts will provideA8AB">

SEC. 2.Section 53395.1 of the Government Code is amended to read:
53395.1.

Unless the context otherwise requires, the following definitions shall govern the construction of this chapter:

(a)“Affected taxing entity” means any governmental taxing agency that levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, or community college district.

(b)“City” means a city, a county, or a city and county.

(c)“Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.

(d)“Designated official” means the city engineer or other appropriate official designated pursuant to Section 53395.13.

(e)(1)“District” means an infrastructure financing district.

(2)An infrastructure financing district is a “district” within the meaning of Section 1 of Article XIII A of the California Constitution.

(f)“Infrastructure financing district” means a legally constituted governmental entity established pursuant to this chapter for the sole purpose of financing public facilities.

(g)“Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed district.

(h)“Legislative body” means the city council or board of supervisors.

(i)“Transit facility” includes, but is not limited to, any publicly owned facility and amenity necessary to implement a transit village plan adopted pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7.

SEC. 3.Section 53395.3 of the Government Code is amended to read:
53395.3.

(a)A district may finance (1) the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer which satisfies the requirements of subdivision (b), (2) may finance planning and design work which is directly related to the purchase, construction, expansion, or rehabilitation of that property, and (3) the costs described in Sections 53395.5, and 53396.5. A district shall only finance the purchase of facilities for which construction has been completed, as determined by the legislative body. The facilities need not be physically located within the boundaries of the district. A district may not finance routine maintenance, repair work, or the costs of ongoing operation or providing services of any kind. A district shall not compensate the members of the legislative body of the city for any activities undertaken pursuant to this chapter.

(b)The district shall finance only public capital facilities including, but not limited to, all of the following:

(1)Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.

(2)Sewage treatment and water reclamation plants and interceptor pipes.

(3)

SEC. 4.Section 53395.7.5 is added to the Government Code, to read:
53395.7.5.

With respect to an infrastructure financing district proposed to implement a transit village plan adopted pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7, an election is not required to form an infrastructure financing district, adopt an infrastructure financing plan, or issue bonds pursuant to this chapter. Any other provision of this chapter applies to the formation of an infrastructure financing district and the adoption of an infrastructure financing plan.

SEC. 5.Section 53395.10 of the Government Code is amended to read:
53395.10.

A legislative body of a city may designate one or more proposed infrastructure financing districts pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:

(a)State that an infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city.

(b)State the type of public facilities proposed to be financed by the district. The district may only finance public facilities authorized by Section 53395.3.

(c)State the need for the district and the goals the district proposes to achieve by financing public facilities.

(d)State that incremental property tax revenue from the city and some or all affected taxing entities within the district may be used to finance these public facilities.

(e)Fix a time and place for a public hearing on the proposal.

SEC. 6.Section 53395.11 of the Government Code is amended to read:
53395.11.

The legislative body shall direct the clerk to mail a copy of the resolution of intention to create the district to each owner of land within the district and to each affected taxing entity.

SEC. 7.Section 53395.12 of the Government Code is amended to read:
53395.12.

The legislative body shall direct the clerk to post a copy of the resolution of intention to create the district in an easily identifiable and accessible location on the legislative body’s Internet Web site.

SEC. 8.Section 53395.14 of the Government Code is amended to read:
53395.14.

After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53395.13 shall prepare a proposed infrastructure financing plan. The infrastructure financing plan shall be consistent with the general plan of the city within which the district is located and shall include all of the following:

(a)A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.

(b)A description of the public facilities required to serve the development proposed in the area of the district including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the public improvements and facilities.

(c)A finding that the public facilities provide significant benefits to an area larger than the area of the district.

(d)A financing section, which shall contain all of the following information:

(1)A specification of the maximum portion of the incremental tax revenue of the city and of each affected taxing entity prop="margin:0 0 1em 0;">

(6)An analysis of the costs to the city of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city as a result of expected development in the area of the district.

(7)An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.

(e)If any dwelling units occupied by persons or families of low or moderate income are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53395.5.

(f)The goals the district proposes to achieve by financing public facilities.

SEC. 9.Section 53395.19 of the Government Code is amended to read:
53395.19.

(a)The legislative body shall not enact a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53396) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity which is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53396) has been filed with the legislative body at or prior to the time of the hearing.

(b)In the case of an affected taxing entity that is a special district that provides fire protection services and where the county board of supervisors is the governing authority or has appointed itself as the governing board of the district, the plan shall be adopted by a separate resolution approved by the district’s governing authority or governing board.

(c)Nothing in this section shall be construed to prevent the legislative body from amending its infrastructure financing plan and adopting a resolution proposing formation of the infrastructure financing district without allocation of the tax revenues of any affected taxing entity which has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity.

SEC. 10.Section 53395.20 of the Government Code is amended to read:
53395.20.

(a)At the conclusion of the hearing required by Section 53395.17, the legislative body may adopt a resolution adopting the infrastructure financing plan, as modified, and approving the formation of the infrastructure financing district in a manner consistent with Section 53395.19, or it may abandon the proceedings.

(b)No later than June 30 of each year after the adoption of the infrastructure financing plan, the legislative body shall direct the clerk to mail an annual report to each owner of land within the district and each affected taxing entity. The legislative body shall direct the clerk to post this annual report in an easily identifiable and accessible location on the legislative body’s Internet Web site. The annual report shall contain all of the following:

(1)A summary of the district’s expenditures.

(2)A description of the progress made towards the district’s adopted goals.

(3)An assessment of the status regarding completion of the district’s public works projects.

(c)If the district fails to provide the annual report required by subdivision (b), the district shall not spend any funds to construct public works projects until the annual report is submitted.

(d)If the district fails to produce evidence of progress made towards achieving its adopted goals for five consecutive years, the district shall not spend any funds to construct any new public works projects; provided, however, the district may complete any public works projects that it had started. Any excess property tax increment revenues that had been allocated for new public works projects shall be reallocated to the affected taxing entities.

SEC. 11.Section 53396 of the Government Code is amended to read:
53e;">(b)That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city and each affected taxing entity which has agreed to participate pursuant to Section 53395.19 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.

SEC. 12.Section 53397.1 of the Government Code is amended to read:
53397.1.

The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution.

SEC. 13.Section 53397.2 of the Government Code is amended to read:
53397.2.

The resolution adopted pursuant to Section 53397.1 shall contain all of the following information:

(a)A description of the facilities to be financed with the proceeds of the bond issue.

(b)The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the bond issuance.

(c)The maximum interest rate and discount on the proposed bond issuance.

(d)A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.

(e)A finding that the amount necessary to pay the principal of, and interest on, the bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).

(f)The issuance of the bonds in one or more series.

(g)The date the bonds will bear.

(h)The denomination of the bonds.

(i)The form of the bonds.

(j)The manner and execution of the bonds.

(k)The medium of payment in which the bonds are payable.

(l)The place or manner of payment and any requirements for registration of the bonds.

(m)The terms or call of redemption, with or without premium.

SEC. 11.Section 65460.2.5 is added to the Government Code, to read:
65460.2.5.

If a city, county, or city and county finances a district that implements a transit village plan adopted pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7, the city, county, or city and county shall do all of the following:

(a)Use at least 20 percent of all revenues derived from the property tax increment under Chapter 2.8 (commencing with Section 53395) of Part 1 of Division 2 of Title 5 for the purposes of increasing, improving, and preserving the supply of lower and moderate-income housing available in the district at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, and occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, lower income households, as defined in Section 50079.5 of the Health and Safety Code, very low income households, as defined in Section 50105 of the Health and Safety Code, and extremely low income households, as defined in Section 50106 of the Health and Safety Code. The amount of very low, low- and moderate-income housing shall be in compliance with the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code) and any adopted policies of the city, county, or city and county that adopted the transit village plan.

(b)Require that housing units described in subdivision (a) remain available at affordable housing cost to, and occupied by, persons and families of low or moderate income and very low income and extremely low income households for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units. The covenants or restrictions implementing this requirement shall be in compliance with subdivision (f) of Section 33334.3 of the Health and Safety Code.

(c)Rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed for rental or sale to persons or families of low or moderate income an equal number of replacement dwelling units that have an equal or greater number of bedrooms as the destroyed or removed units, at affordable housing costs within the district, and within four years after the destruction or removal, whenever dwelling units housing persons or families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of the development of a district that is subject to a written agreement with the city, county, or city and county, or when financial assistance has been provided by the city, county, or city and county. The replacement dwelling units shall be available at affordable housing cost to, and occupied by, persons and families in the same or a lower income category as the persons and families displaced from those destroyed or removed units.

(d)Include in the transit village plan both of the following:

(1)As one of the five demonstrable public benefits required by subdivision (f) of Section 65460.2, either an increased stock of affordable housing or live-travel options for transit-needy groups.

(2)Provisions to implement subdivisions (a) and (b) and paragraph (1).