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AB-2822 Brownfield Cleanup Funding Program: brownfields remediation: financing.(2021-2022)

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Date Published: 04/20/2022 09:00 PM
AB2822:v97#DOCUMENT

Amended  IN  Assembly  April 20, 2022
Amended  IN  Assembly  March 24, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 2822

Introduced by Assembly Member Nazarian

February 18, 2022

An act to amend Sections 16305.2 and 53993 of, and to add Section 16305.10 to, the Government Code, and to add Chapter 6.84 (commencing with Section 25395.500) to Division 20 of the Health and Safety Code, relating to brownfields. brownfields, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 2822, as amended, Nazarian. The Contaminated Land and Water Cleanup Act of 2022: Brownfield Cleanup Funding Program: brownfields remediation: financing.

Existing

(1) Existing law authorizes the Department of Toxic Substances Control to undertake or oversee response or corrective actions under the hazardous waste control laws or the Carpenter-Presley-Tanner Hazardous Substance Account Act in response to a release or threatened release of a hazardous substance or a hazardous waste.
Existing law authorizes the legislative body of a city or a county to propose the establishment of an enhanced infrastructure financing district, in accordance with specified procedures, to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase.
This bill would establish the Brownfield Cleanup Funding Program, to be administered by the department. The bill would authorize the city council of a city, or the board of supervisors of a city and county, to participate in the program by enacting an ordinance establishing a brownfield cleanup district, as provided. The bill would require that the city council or board of supervisors serve as the governing board of the district and, in that capacity, prepare and adopt a brownfield cleanup financing plan. The bill would authorize a district to designate program areas. The bill would authorize the district to provide program funding for brownfield cleanup projects, as defined, within those program areas that meet specified requirements. The bill would authorize the brownfield cleanup financing plan to include a provision for the division of taxes with respect to those properties selected for participation. The bill would require the department to establish a formula to determine a maximum amount of program funding and a maximum term for the division of taxes, based on the characteristics of a project.
The bill would authorize a brownfield cleanup district to enter into a contract with the department that includes specified provisions, including a provision requiring the district to remit the entirety of the amount allocated to it by a division of taxes to the department and a provision requiring that the department transfer that amount to the custody of the Treasurer for deposit in the Brownfield Cleanup Trust Fund (trust fund), which this bill would create and continuously appropriate to the department. By providing for the deposit of moneys into a continuously appropriated fund, the bill would make an appropriation. The bill would require the department to issue revenue bonds, in accordance with specified procedures, secured by moneys in the trust fund and allocate the proceeds of those bonds to districts with which it has a contract in proportion to the amount remitted by each district. The bill would specify that moneys in the trust fund are nonstate moneys and are instead the property of, and held in trust on behalf of, the districts that contract with the department under these provisions. The bill would require that a district use the proceeds of revenue bonds allocated to it pursuant to these provisions for those purposes to provide program funding to participating brownfield cleanup projects.
The bill would make various conforming changes to other laws relating to state moneys and the division of taxes by local agencies.
By adding to the duties of county auditors with respect to the allocation of property tax revenues, this bill would impose a state-mandated local program.
(2) Existing law defines “public works” as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of specified public works requirement.
This bill would require that a brownfield cleanup project funded pursuant to the program constitutes a public work for which prevailing wages are required to be paid. Because a willful violation of these requirements would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
(3) 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 specified reasons.

This bill would require the department to create the Contaminated Land and Water Cleanup Revolving Loan Program to provide financing, including low-interest loans, to eligible entities, as specified, to finance the remediation of, or to offset the cost of remediating, brownfield sites, as defined. The bill would require the department, on or before January 1, 2024, to adopt, and post on its internet website, criteria and guidelines for eligible entities to apply for this financing.

This bill would establish the Contaminated Land and Water Cleanup Revolving Loan Fund, to be administered by the department, for the purpose of providing, upon appropriation by the Legislature, financing to eligible entities in accordance with the revolving loan program created by the department. The bill would require the California Infrastructure and Economic Development Bank, upon request of the department, to make recommendations, as provided, regarding the specific financing mechanisms and risk mitigation measures necessary and appropriate for the successful administration of the fund. The bill would require that loan repayments, fees, interest, and penalties be deposited in the fund for specified uses, upon appropriation by the Legislature, including for additional loans authorized under the program.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NOYES  

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


SECTION 1.

 Section 16305.2 of the Government Code is amended to read:

16305.2.
 (a) All money in the possession of or collected by any state agency or department, except for money in the Local Agency Investment Fund or the Brownfield Cleanup Trust Fund, is subject to Sections 16305.3 to 16305.7, inclusive, and is hereafter referred to as state money.
(b) Except as otherwise provided by this chapter or authorized by statute, any transfer, expenditure, or other use of state money knowingly committed by a state employee, outside of the State Treasury System is a misdemeanor, punishable by up to one year in a county jail, or a two-thousand-five-hundred-dollar ($2,500) fine, or both.

SEC. 2.

 Section 16305.10 is added to the Government Code, to read:

16305.10.
 (a) All money in the Brownfield Cleanup Trust Fund shall be held in trust in the custody of the Treasurer.
(b) All money in the Brownfield Cleanup Trust Fund is nonstate money. That money shall be held in a trust account or accounts. The Controller shall be responsible for maintaining those accounts to record the Treasurer’s accountability and shall maintain a separate account for each trust deposit in the Brownfield Cleanup Trust Fund.
(c) Moneys in the Brownfield Cleanup Trust Fund subject to this section shall be subject to audit by the Department of Finance and to cash count as provided for in Sections 13297, 13298, and 13299. It may be withdrawn only upon the order of the depositing entity or its disbursing officers. The system that the Director of Finance has established for the handling, receiving, holding, and disbursing of state agency money shall also be used for the money in the Brownfield Cleanup Trust Fund.

SEC. 3.

 Section 53993 of the Government Code is amended to read:

53993.
 (a) Notwithstanding any other law, except as provided in subdivision (b), for the purpose of any law authorizing the division of taxes levied upon taxable property, including, but not limited to, Sections 53369.30, 53396, 53398.30, 53398.75, and 62005, no revenues derived from the imposition of a property tax rate approved by the voters pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution shall be divided.
(b) Subdivision (a) shall not apply to the either of the following:
(1) The allocation of property taxes pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.
(2) The division of taxes authorized by Section 25395.520 of the Health and Safety Code.

SEC. 4.

 Chapter 6.84 (commencing with Section 25395.500) is added to Division 20 of the Health and Safety Code, to read:
CHAPTER  6.84. Brownfield Cleanup Funding Program
Article  1. General Provisions

25395.500.
 This chapter shall be known, and may be cited, as the Brownfield Cleanup Funding Program.

25395.501.
 The Legislature finds and declares all of the following:
(a) “Brownfield” is the technical name for an underused or abandoned industrial or commercial property that is suspected, actually, or perceived to be environmentally contaminated. Brownfields can range from old factories and railyards to vacant warehouses, and from defunct gas stations, oil wells, and energy facilities to former dry cleaning establishments and landfills.
(b) The United States Government Accountability Office has estimated that there are over 450,000 brownfield sites in the United States. And, according to the California Environmental Protection Agency, California is home to almost 90,000 of these sites. The number is likely much higher.
(c) Throughout California, the need to address the brownfields challenge is growing. Over the last several decades, the state’s industrial manufacturing base and petroleum industry has declined and landfills have closed, and many urban and rural areas are now saddled with polluted, idle, or underutilized properties.
(d) These brownfield sites can and should be cleaned up and placed to safe, productive, community-enhancing, and sustainable use. The safe and sustainable cleanup and reuse of brownfields promotes, among other things, all of the following:
(1) Environmental and ecological health.
(2) Community revitalization.
(3) Environmental justice goals.
(4) Housing production and affordability.
(5) Reduced sprawl and conservation of open spaces.
(6) Creation of jobs.
(7) Local and regional economic prosperity.
(8) Increased tax base.
(9) Reduced greenhouse gas emissions as compared to business as usual.
(10) Creation of new public parklands and open space.
(e) California has been a leader in the safe and sustainable cleanup of brownfields and community revitalization. California has a record of successfully transforming brownfield sites into a wide variety of uses, including, among others, housing developments, retail sites, office parks, community parks, and solar energy production centers.
(f) The safe and sustainable revitalization of brownfields with community engagement is a key tool in achieving environmental justice goals.
(g) Communities that lack access to safe, clean parks, open space, and trails, as well as affordable housing, are disproportionately impacted by the enduring and perceived conditions at or emanating from brownfield sites.
(h) The safe and sustainable cleanup and reuse of brownfields for purposes such as parks and restored natural areas will advance California’s commitment to conserving 30 percent of its lands by 2030, also known as “30 X 30,” especially in urban disadvantaged communities.
(i) Decades of data from around the country prove that funding the cleanup of brownfields creates jobs and produces revenue for state and local governments, while also benefitting the environment. Other states have found that the cleanup of brownfields leverages over forty-four dollars ($44) of private investment for every one dollar ($1) of cleanup funding.
(j) Data shows that one permanent job is leveraged for every ten thousand dollars ($10,000) to thirteen thousand ($13,000) invested in a brownfield redevelopment project. Minnesota’s brownfield cleanup funding program created or retained a total of 104,000 jobs in the state and increased the local tax base by over one billion one hundred fifty million dollars ($1,150,000).
(k) Studies have shown that the cleanup of brownfields leads surrounding housing prices to increase between 4.9 percent and 32 percent.
(l) One acre of brownfields redevelopment equals 4.5 acres of greenfields preserved. And when development occurs at a brownfield site instead of a greenfield site, there is a 32-percent to 57-percent reduction in vehicle miles traveled. Brownfields redevelopment also improves water quality by reducing stormwater runoff 47 percent to 62 percent compared to a greenfield redevelopment site.
(m) According to a recent study, redevelopment of just nine sites totaling over 900 acres is estimated to result in 9,300 new residential units, 1.8 million square feet of retail, 2.6 million square feet of industrial, and 4 million square feet of office uses with a total assessed value at completion of nine billion three hundred million dollars ($9,300,000,000) and providing an estimated 22,500 construction jobs over a 10-year buildout or greater.
(n) Based on a review of project information provided by various developers and city staff, a total construction value of six billion five hundred million dollars ($6,500,000,000) could be built following cleanup. The grand total state tax revenues during the construction period are estimated at one hundred thirty million dollars ($130,000,000). Based on typical labor materials ratios, it is estimated that 20,000 full-time equivalent construction related jobs will result, generating an estimated two billion five hundred million dollars ($2,500,000,000) in wages. Based on a rough estimate of per capita taxable wages, California personal income tax would be approximately sixty-five million dollars ($65,000,000).
(o) With the dissolution of redevelopment agencies, public benefits will accrue if cities are able to finance the cleanup of brownfields through tax increment financing.
(p) Financing the cleanup of brownfields serves a public purpose by incentivizing and supporting the residential and commercial development necessary to alleviate the state’s housing crisis, convert currently unusable properties into productive use, and revitalize surrounding neighborhoods.
(q) It is the intent of the Legislature in enacting this chapter to provide funding for the cleanup of brownfields by reallocating the tax increment share proceeds of cities and school districts from those cleanups and subsequent development by providing for the issuance of revenue bonds by the Department of Toxic Substances Control that are secured by future tax increment proceeds, and providing grant funding to qualifying brownfield cleanup projects with the proceeds of those bonds.

25395.502.
 For purposes 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 before to the designation of the district.
(b) “Affected taxing entity equity amount” means the amount of ad valorem property tax revenue that the affected taxing entity would have received from property located within the proposed district in the absence of the brownfield cleanup district, calculated pursuant to subdivision (e) of Section 25395.521.
(c) “Brownfield site” means any of the following:
(1) A hazardous waste site listed pursuant to Section 65962.5 of the Government Code.
(2) A hazardous substance release site designated by the department pursuant to Section 25356.
(3) A landfill or other real property where the expansion, redevelopment, or reuse of the property is complicated by the presence or potential presence of hazardous materials.
(d) “Brownfield cleanup district” means a legally constituted governmental entity separate and distinct from the city that established it pursuant to Article 2 (commencing with Section 25395.510) for the sole purpose of financing brownfield cleanup as authorized by this chapter. A brownfield clean up district shall be a local agency for purposes of the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).
(e) “Brownfield cleanup project” means a project to clean up, in accordance with a cleanup plan approved by the department, the presence or potential presence of hazardous materials at a brownfield site located on a program area for the purpose of developing the site for residential, mixed-use, or nonresidential purposes. “Brownfield cleanup project” does not include the proposed residential, mixed-use, or nonresidential development constructed after cleanup of the brownfield site is certified by the department.
(f) “City” means a city or city and county.
(g) “Department” means the Department of Toxic Substances Control.
(h) “District” means a brownfield cleanup district established pursuant to Section 25395.510.
(i) “District contract” means a contract entered into between the department and a district pursuant to Section 25395.525.
(j) “Governing board” means the legislative body of a city that establishes a district pursuant to Article 2 (commencing with Section 25395.510) acting as the governing board of that district.
(k) “Hazardous material” means a substance or waste that, because of its physical, chemical, or other characteristics, may pose a risk of endangering human health or safety or of degrading the environment. “Hazardous material” includes, but is not limited to, all of the following:
(1) A hazardous substance, as defined in Section 25281 or 25316.
(2) A hazardous waste, as defined in Section 25117.
(3) A waste, as defined in Section 13050 of the Water Code.
(l) “Landowner” means any person shown as the owner of land on the last equalized assessment roll. 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 for purposes of this chapter, unless the public agency owns all of the land to be included within a program area.
(m) “Legislative body” means the city council of a city, or the board of supervisors of a city and county, that participates in the program by establishment of a district.
(n) “Plan area” and “area included within the district” includes only those properties located within a program area that are selected pursuant to Section 25395.516 for the term for which those properties are eligible to participate pursuant to subdivision (b) of Section 25395.517.
(o) “Program” means the Brownfield Cleanup Funding Program established pursuant to this chapter.
(p) “Program area” means any site, parcel, or area within the territorial boundaries of a city participating in the program that is eligible for program funding and designated pursuant to Section 25395.512.
(q) “Program funding” means financing provided by a district and the department pursuant to the program in accordance with this chapter.
(r) “Proponent” means any of the following that proposes to conduct a brownfield cleanup project:
(1) A city, county, or local agency, or any subdivision or combination thereof.
(2) A nonprofit organization.
(3) A person or entity, including, but not limited to, an individual, business, or corporation.
(4) A Native American tribe.
(s) “Trust fund,” except as used in Sections 25395.521 and 25395.522, means the Brownfield Cleanup Trust Fund established pursuant to Section 25395.555.

25395.503.
 There is hereby established the Brownfield Cleanup Funding Program. The department shall administer the program consistent with the requirements of this chapter.

Article  2. Brownfield District Formation

25395.510.
 (a) (1) A city may participate in the program by enacting an ordinance establishing a brownfield cleanup district in accordance with this article.
(2) The legislative body of the city shall serve as the governing board of the district.
(b) Upon enactment of an ordinance pursuant to this section, the city shall notify the department of the city’s intent to participate in the program and of the formation of a district pursuant to this section by providing a written notice that includes a copy of the ordinance enacted pursuant to this section.
(c) (1) Within 30 days of receiving a notice pursuant to subdivision (b), the department shall acknowledge, in writing, the receipt of that notice. A city’s participation in the program shall be effective as of the date of the department’s written acknowledgment pursuant to this subdivision or after the 30-day period specified in this subdivision has passed, whichever occurs sooner.
(2)  Once the city’s participation in the program becomes effective, the district may designate program areas pursuant to Section 25395.512 and approve brownfield cleanup projects for program funding pursuant to Article 3 (commencing with Section 25395.515).

25395.511.
 After the establishment of a district, the governing board shall prepare, or cause to be prepared, and adopt a brownfield cleanup financing plan. The brownfield cleanup financing plan shall be consistent with the general plan of the city or county within which the district is located. The governing board shall include all of the following in the brownfield cleanup financing plan:
(a) A map and legal description of the district, which may include all or a portion of the district designated by the legislative body in the ordinance adopted pursuant to Section 25395.510.
(b) Identification of those areas within the district’s boundaries proposed to be designated as program areas pursuant to Section 25395.512. This subdivision does not preclude a district from subsequently designating additional program areas within its boundaries pursuant to Section 25395.512.
(c) A statement that the plan area comprises only those parcels located within program areas designated pursuant to Section 25395.512 and selected for participation in the program pursuant to Section 25395.516.
(d) A financing section, which shall contain all of the following information:
(1) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues.
(2) A plan for awarding program funding in accordance with Sections 25395.517 and 25395.518.
(3) A passthrough provision that provides that the district will, except as otherwise provided in this paragraph, pay to each affected taxing entity an amount equivalent to the affected taxing entity equity amount, as calculated pursuant to subdivision (e) of Section 25395.521. A passthrough provision shall not provide payment to the city that established the district, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.
(4) An override passthrough provision that provides that the district will pay to each affected taxing entity that imposed an override property tax on property located within the proposed district an amount that is equivalent to the amount the affected taxing entity would have received from the override property tax imposed on that property in the absence of the district, as calculated pursuant to subdivision (f) of Section 25395.521. For purposes of this paragraph, “imposed an override property tax” means that an ad valorem property tax was imposed on property by, or on behalf of, the affected taxing entity within the meaning of subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution. An override passthrough provision shall not provide payment to the city that established the district, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.
(e) Procedures for allocation of program funding to each brownfield cleanup project within the plan area consistent with subdivision (b) of Section 25395.515, not to exceed the amount or the term for which those projects are eligible pursuant to Section 25395.517.

25395.512.
 (a) The governing board of a district may designate by ordinance or resolution one or more program areas that meet requirements established by the district in consultation with the department.
(b) (1) The governing board, a landowner residing within the city, or any member of the public may propose to designate a program area pursuant to this section.
(2) If the governing board or a person other than a landowner who owns the affected property proposes to designate a program area, the governing board shall provide written notice to the landowner of a property proposed to be included in that program area at least 15 days before the first public hearing on the ordinance or resolution proposing to designate a program area.
(c) The governing board shall maintain, and make publicly available, a map identifying all areas within the city designated as program areas pursuant to this section.
(d) The governing board shall notify the department that it has designated program areas pursuant to this section within 15 days of adopting that ordinance or resolution.

25395.513.
 Any action or proceeding to attack, review, set aside, void, or annul the creation of a district or adoption of a brownfield cleanup financing plan, including a division of taxes thereunder, shall be commenced within 30 days after the enactment of the brownfield cleanup financing plan pursuant to Section 25395.511. Consistent with the time limitations of this section, an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

Article  3. Selection of Brownfield Cleanup Projects

25395.515.
 (a) In order to be eligible for program funding pursuant to this chapter, a brownfield cleanup project shall meet all of the following criteria:
(1) The proponent owns the brownfield site that is the subject of the brownfield cleanup project.
(2) The proponent is not a responsible party or a liable person, as defined in Section 25323.5.
(3) The proponent is not named in or otherwise subject to an order issued by, or a party or otherwise subject to an enforceable agreement entered into with, the department pursuant to Chapter 6.5 (commencing with Section 25100) or Chapter 6.8 (commencing with Section 25300) for the cleanup of the brownfield site.
(4) The proponent has received department approval of a plan to cleanup the brownfield site that, if completed, would allow for the development of the brownfield site for residential, mixed-use, or nonresidential purposes.
(5) The proponent can demonstrate financial assurance in accordance with the requirements of Chapter 6.5 (commencing with Section 25100) and Chapter 6.5 (commencing with Section 25300), including implementing regulations.
(6) The proponent has received all conditional use or other discretionary permits or other zoning entitlements from the city necessary to develop the brownfield site for residential, mixed-use, or nonresidential purposes.
(7) The proponent has entered into a contract for the development of the brownfield site for residential, mixed-use, or nonresidential purposes after certification of the cleanup by the department.
(b) A district shall prioritize for program funding a brownfield cleanup project that meets all of the following criteria:
(1) The brownfield site for which the brownfield cleanup project is proposed is 10 acres or more.
(2) The brownfield cleanup project is estimated to cost seven million dollars ($7,000,000) or more.
(3) The residential, mixed-use, or nonresidential development proposed for construction on the brownfield site has the potential to generate substantial property tax revenues.

25395.516.
 (a) A proponent of a brownfield cleanup project that satisfies the requirements specified in Section 25395.515 may apply for program funding by submitting an application, in the form and manner prescribed by the district, to the district.
(b) An application for program funding shall contain all of the following:
(1) A description of the brownfield cleanup project.
(2) The total square footage of the cleanup project, the square footage that will be designated for residential use, and the square footage that will be designated for nonresidential use.
(3) The financial information required pursuant to Section 25395.551.
(4) Any other information required by the district or the department that will enable the district and the department to determine the eligibility of the brownfield cleanup project to receive program funding.
(c) Upon receipt of a complete application for program funding, the district shall provide a copy of the application to the department for review in accordance with Article 6 (commencing with Section 25395.550).
(d) Upon receipt of the approval of the department, the district may approve a brownfield cleanup project to receive program funding.
(e) The district shall provide the department a copy of any final approved application for program funding, along with a copy of any necessary conditional use or other discretionary permits or other zoning entitlements issued by the city, for a project.

25395.517.
 (a) A brownfield cleanup project that receives program funding shall develop the parcel into either residential, mixed-use, or nonresidential property as described in the project’s application submitted pursuant to Section 25395.516.
(b) The department shall establish a formula, based on the proposed use of the property and the amount of value added by the completed development, to determine both of the following:
(1) The maximum amount of program funding that a brownfield cleanup project may receive.
(2) The term that the parcel will be subject to the division of taxes pursuant to Section 25395.520.

25395.518.
 If the developer does not complete a brownfield cleanup project selected to receive program funding pursuant to this article within ___ years, the developer shall pay to the district an amount equal to the amount of program funding that the developer received.

25395.519.
 (a) A brownfield cleanup project that receives funding under the program is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(b) Notwithstanding any other law, the residential, mixed-use, or commercial development constructed on the brownfield site after the cleanup of the brownfield site is certified by the department shall not be deemed a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code solely because the brownfield cleanup project received funding under this chapter.

Article  4. Division of Taxes

25395.520.
 (a) A district may include in a brownfield cleanup financing plan adopted pursuant to Section 25395.511 a provision that taxes, if any, levied upon taxable property in the area included within the district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the brownfield cleanup financing plan adopted pursuant to Section 25395.511 and selection of projects for participation pursuant to Section 25395.516, shall be divided as follows:
(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized before the effective date of the brownfield cleanup financing plan adopted pursuant to Section 25395.511 and selection of projects for participation pursuant to Section 25395.516, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year in excess of the amount specified in paragraph (1) 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 paragraph (1), 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 brownfield cleanup 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.
(b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (a) shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5.
(c) The legislative body of the city that established the district may choose to dedicate any portion of its net available revenue to the district through the brownfield cleanup financing plan adopted pursuant to Section 25395.511.
(d) For the purposes of this section, “net available revenue” means periodic distributions to the city from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5, that are available to the city after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24. For purposes of this section, “net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, a county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183.
(e) (1) That portion of any ad valorem property tax revenue annually allocated to a city pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted brownfield cleanup financing plan for the city that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
(2) When the district ceases to exist, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city.
(f) A district may utilize revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the brownfield cleanup financing plan adopted pursuant to Section 25395.511 has been approved:
(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2).

25395.521.
 (a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 25395.520 shall be allocated and paid into a special fund held in trust for the district by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section.
(b) Not later than October 1 of each year, for each project selected pursuant to Section 25395.516 for which the brownfield cleanup financing plan provides for the division of taxes pursuant to Section 25395.520, the district shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness consistent with subdivision (c), a reconciliation statement consistent with subdivision (d), a passthrough statement consistent with subdivision (e), and an override passthrough statement consistent with subdivision (f). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the district.
(c) (1) For each project selected pursuant to Section 25395.516 for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following:
(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:
(i) The date the loan, advance, or indebtedness was incurred or entered into.
(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.
(iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.
(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.
(B) The sum of the amounts determined under clause (iii) of subparagraph (A).
(C) The sum of the amounts determined under clause (iv) of subparagraph (A).
(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).
(2) The district may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate, or term cannot be precisely determined. The district may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.
(d) For each project selected pursuant to Section 25395.516 for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:
(1) A list of all loans, advances, and indebtedness listed on the previous year’s statement of indebtedness.
(2) A list of all loans, advances, and indebtedness, not listed on the previous year’s statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the district pursuant to Section 25395.520. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or property management expenses, into a single item in the listing.
(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:
(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into.
(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.
(C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the district pursuant to Section 25395.520.
(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the district pursuant to Section 25395.520.
(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.
(4) The available revenues of the district as of the beginning of the previous fiscal year.
(5) The amount of revenue received by the district in the previous fiscal year pursuant to Section 25395.520.
(6) The amount of available revenue received by the district in the previous fiscal year from any source other than pursuant to Section 25395.520.
(7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).
(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).
(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).
(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.
(e) A district shall prepare a passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the district expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 25395.520.
(2) For each affected taxing entity that is entitled to a passthrough, the district shall subtract from the amount described in paragraph (1) the amount calculated by the county auditor as provided in this paragraph. The county auditor shall calculate the proportional amount that the affected taxing entity would have received from property located within the boundaries of the district during the relevant fiscal year, inclusive of amounts the affected taxing entity would receive, if any, pursuant to Section 97.70 of, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code. However, in no instance shall the amount calculated under this paragraph result in the affected taxing entity receiving an amount of ad valorem property tax revenue that is greater or lesser than the amount of ad valorem tax revenue received by the district that is attributable to that affected taxing entity, inclusive of the amounts the affected taxing entity would receive from any of the sources described in the preceding sentence.
(3) A statement of the total amount of passthrough payments that the district is required to make as calculated pursuant to paragraph (2).
(f) For each district that has an override passthrough provision in the financing section of its brownfield cleanup financing plan, in accordance with paragraph (4) of subdivision (c) of Section 25395.511, at the time of creation of that district, the district shall prepare an override passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the district expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 25395.520.
(2) For each affected taxing entity that imposed an override property tax with respect to property located with the boundaries of the district, the department shall subtract from the amount described in paragraph (1) the amount calculated by the county auditor that is equivalent to the amount the affected taxing entity would have received from the override property tax imposed on that property in the absence of the district during the relevant fiscal year. The district shall include in the override passthrough statement the following information, to be provided to the county auditor:
(A) A description of the applicable override property tax that was imposed.
(B) The purpose it was imposed for.
(C) The entity that is entitled to receive revenue under that override property tax.
(3) A statement of the total amount of passthrough payments that the department is required to make as calculated pursuant to paragraph (2).
(g) For the purposes of this section, available revenues shall include all cash or cash equivalents held by the department that were received by the district pursuant to Section 25395.520 and all cash or cash equivalents held by the district that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the district has listed on a statement of indebtedness. However, available revenue, for purposes of this section, shall not include the amount of any payment that the district is required to make under a passthrough provision as described in the passthrough statements prepared pursuant to subdivisions (e) and (f).
(h) The county auditor or officer shall, at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, allocate and pay the portion of taxes provided by paragraph (2) of subdivision (a) of Section 25395.520 to a special trust fund established for each district. The amount allocated and paid pursuant to this section shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c) plus the amount owed under any passthrough provision under subdivision (e) or (f), minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c).
(i) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the district.
(2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the district thereof.
(B) The district shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the district, and the amount disputed may be withheld from allocation and payment to the district as otherwise required by subdivision (h). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice.
(3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under an indenture of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (h).
(j) This section does not permit a challenge to or attack on matters precluded from challenge or attack by reason of Section 25395.513. However, this section does not deny a remedy against the district otherwise provided by law.
(k) The Controller shall prescribe a uniform form for a statement of indebtedness, reconciliation, passthrough, and override passthrough. These forms shall be consistent with this section. In preparing these forms, the Controller shall obtain the input of county auditors and organizations of county auditors.

25395.522.
 The county auditor shall, after deducting its administrative costs for activities performed pursuant to this chapter and Section 95.3 of the Revenue and Taxation Code, allocate the funds deposited in a special trust fund established for a district pursuant to subdivision (h) of Section 25395.521 in the same manner and at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, as follows:
(a) First, the county auditor shall distribute funds from the special trust fund sufficient to satisfy any passthrough provisions described in paragraph (3) of (4) of subdivision (a) Section 25395.511 that was approved at the time of the adoption of the brownfield cleanup financing plan pursuant to Section 25395.511, and calculated pursuant to subdivision (e) or (f) of Section 25395.521. The amount transferred pursuant to this subdivision shall be equal to the amount calculated pursuant to subdivision (e) or (f) of Section 25395.521.
(b) Second, the county auditor shall transfer the amount remaining in the special trust fund after any transfer required by subdivision (a) to the district for use in accordance with the brownfield cleanup financing plan adopted pursuant to Section 25395.511 or remittance to the department pursuant to a contract entered into under Section 25395.525.

Article  5. District Contracts with the Department of Toxic Substances Control

25395.525.
 A district may enter into a contract with the department that shall include, at minimum, the following provisions:
(a) No later than December 31 of each year for which the contract is in effect, the district will remit the entirety of the amount allocated to it pursuant to Section 25395.520 to the department. The contract may provide for either a one-time lump sum or a periodic remission of funds.
(b) Upon receipt of moneys remitted pursuant to subdivision (a) and in accordance with Section 16305.10 of the Government Code, the department shall transfer the full amount to the custody of the Treasurer for deposit in the trust fund, established pursuant to Section 25395.555.
(c) The contract is subject to annual renewal, as follows:
(1) If the governing board adopts a resolution to terminate the contract, the department shall make a final allocation to the district from the trust fund, as provided in Section 25395.555, after which the district shall have no claim to any moneys in the trust fund.
(2) If the governing board does not take any action by December 31 of any year for which a contract is entered into or renewed under this section, the contract shall be deemed to be renewed for the following year.
(d) The department shall issue revenue bonds secured by moneys remitted to the trust fund pursuant to the contract in accordance with Article 7 (commencing with Section 25395.555).
(e) No later than January 31 of each year following any year in which the contract is in effect, the department shall allocate an amount from the trust fund to the district in proportion to the amount of moneys the district remitted for that year, as provided in Section 25395.555.
(f) Moneys remitted to the department and deposited in the trust fund, as required by this section and the contract, are property of the district that remitted the moneys and are not state moneys.
(g) Any other provision consistent with the requirements of this section that the district and the department agree to in order to fulfill the purposes of this chapter.

25395.526.
 The district shall expend moneys allocated to it under a contract entered into with the department and in accordance with Section 25395.555 solely for those purposes of providing program funding to brownfield cleanup projects that are selected pursuant to Section 25395.516, consistent with the maximum amount and for the period established by the department pursuant to subdivision (b) of Section 25395.517.

25395.527.
 The department may require a district that enters into a contract pursuant to this article to agree to pay the department’s actual and reasonable regulatory costs to administer and implement this chapter. The moneys received by the department pursuant to this section shall not be deposited into the trust fund established pursuant to Section 25395.555.

Article  6. Preliminary Approval of Projects

25395.550.
 (a) The department shall develop a process by which it shall preliminarily approve or disapprove brownfield cleanup projects for participation in the program based on applications provided to it pursuant to subdivision (c) of Section 25395.516.
(b) The department shall provide preliminary approval of a brownfield cleanup project if it finds all of the following:
(1) The proposed brownfield cleanup project complies with the requirements of Article 3 (commencing with Section 25395.515).
(2) The department is satisfied of the desirability of the development planned for the parcel after successful completion of the brownfield cleanup project.
(3) The developer provides the necessary financial information required by Section 25395.551.

25395.551.
 The department shall prescribe financial information required to be included in an application for participation in the program that shall include, at minimum, an identification of any other public or private sources of financing for the brownfield cleanup project and development of the property after the successful completion of the brownfield cleanup project.

Article  7. Brownfield Cleanup Tax Increment Revenue Bonds

25395.555.
 (a) (1) There is hereby established in the State Treasury the Brownfield Cleanup Trust Fund. Notwithstanding Section 13340 of the Government Code, moneys in the trust fund are hereby continuously appropriated to the department for allocation to districts in accordance with this chapter.
(2) Except as provided in Section 25395.527, the department shall transfer all moneys it receives under a district contract to the custody of the Treasurer for deposit into the trust fund in accordance with Section 16305.10 of the Government Code. No later than January 31 of each year, the department shall allocate moneys from the trust fund to each district that has a district contract an amount proportionate to the amount of money in the trust fund that the district contributed to the trust fund pursuant to that district contract during the immediately preceding calendar year. The department shall develop a methodology to determine the proportionate amount owed to each district.
(b) The Legislature hereby finds and declares that moneys in the trust fund are the property of the districts that have a district contract with the department and are not state moneys within the meaning of Section 16305.2 of the Government Code, but are instead the property of, and held in trust on behalf of, those districts as provided in Section 16305.10 of the Government Code. The state and the board of directors of the department shall not have any right, title, or interest in those moneys, except as is necessary for the issuance of revenue bonds pursuant to this chapter.

25395.556.
 (a) The department shall issue revenue bonds secured by moneys in the trust fund.
(b) (1) The Treasurer shall coordinate the sale of the bonds of the department. To obtain a date for the sale of bonds, the department shall inform the Treasurer of the amount of the proposed issue. Upon that notification, the Treasurer shall provide three 10-day periods, within the 90 days next following, when the bonds can be sold. The department may choose any date during the suggested periods or any other date to which the department and the Treasurer have mutually agreed. The Treasurer shall sell the bonds on the date chosen according to terms approved by the department.
(2) The department shall exercise its powers with due regard for the right of the holders of bonds of the department at any time outstanding, and nothing in, or done pursuant to, this section shall in any way limit, restrict, or alter the obligation or powers of the department or any member, officer, or representative of the department or the Treasurer to carry out and perform in every detail each and every covenant, agreement, or contract at any time made or entered into on behalf of the department with respect to its bonds or its benefits, or the security of the holders of the bonds.
(c) The bonds authorized by resolution of the department pursuant to this chapter shall be in the form, bear those date or dates, and mature at the time or times as the resolution or resolutions may provide, except that a bond shall not mature more than 50 years from the date of its issue. The bonds may be issued as serial bonds or as term bonds, or as a combination thereof, and, notwithstanding any other law, the amount of principal of, or interest on, bonds maturing at each date of maturity need not be equal. The bonds shall bear interest at the rate or rates, be in those denominations, be in the form, either coupon or registered, carry those registration privileges, be executed in that manner, be payable in the medium of payment at the place or places within or without the state, be subject to the terms of redemption and contain those terms and conditions as the resolution or resolutions may provide. The bonds of the department pursuant to this chapter shall be sold at public or private sale by the Treasurer at, above, or below the par value, on the terms and conditions and for consideration in the medium of payment as the department shall determine by resolution before the sale.
(d) Any resolution or resolutions authorizing any bonds or issue therefor may contain the following provisions, which shall be a part of the contract or contracts with the holders of those bonds, as to:
(1) Pledging all or any part of the moneys in the trust fund to secure payment of the bonds or any issue of those bonds, subject to any agreement with the bondholders as may then exist.
(2) Limitations on the issuance of additional bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding bonds.
(3) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given.
(4) Vesting in a trustee or trustees any property, rights, powers, and duties in trust as the department may determine, and providing for or limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers, and duties of that trustee.
(5) Defining the acts or omissions to act that shall constitute a default in the obligations and duties of the department to the holders of the bonds and providing for the rights and remedies of the holders of the bonds in the event of default. However, these rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter.
(6) Any other matters of like or different character, which in any way affect the security, protection, or investment return of the holders of the bonds.

25395.557.
 (a) Bonds issued under this chapter shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the department, or a pledge of the faith and credit of the state or of any such political subdivision, other than the department, but shall be payable solely from funds provided pursuant to a district contract under this chapter. All those bonds and any prospectus or other printed representation of the department concerning those bonds shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this bond.”
(b) The issuance of bonds under this chapter shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent or be construed to prevent the department from pledging its full faith and credit to the payment of bonds or issue of bonds authorized pursuant to this chapter.
(c) The department shall select bond underwriters and consultants.
(d) The members of the board, the executive director of the department, or any other person executing those notes or bonds shall not be subject to any personal liability or accountability by reason of the issuance thereof.
(e) In the event any of the board members or officers of the department whose signatures appear on any bonds or coupons shall cease to be board members or officers of the department before the delivery of those bonds, the signatures of those board members or officers shall, nevertheless, be valid and sufficient for all purposes, the same as if those board members or officers had remained in office until the delivery of the bonds.

25395.558.
 (a) (1) The Treasurer shall act as trustee for the department and the holders of its bonds, provided the Treasurer elects to serve as trustee with respect to a particular issuance of bonds by notifying the department of this election in writing at or before the board meeting at which the board approves a resolution authorizing the issuance and sale of the bonds.
(2) Any bonds issued under this chapter may be secured by a trust agreement, indenture, or resolution, by and between the department and a trustee or trustees, which may be the Treasurer or any trust company or bank having the powers of a trust company within or without the state. Notwithstanding other provisions in this division, references to the Treasurer as trustee shall be deemed to refer to either the Treasurer or the duly empowered bank or trust company trustee, as the case may be. The trust agreement, indenture, or the resolution providing for the issuance of the bonds may pledge or assign revenues to be received or proceeds of any contract or contracts pledged. Any resolution authorizing any bonds or issue thereof shall prescribe the duties of the Treasurer with respect to the issuance, authentication, sale, and delivery of the bonds, the payment of principal and interest thereof, and the redemption of the bonds. Notwithstanding any other law, the Treasurer shall not be deemed to have a conflict of interest by reason of acting as trustee pursuant to this chapter.
(3) The trustee shall act on behalf of the holders of the department’s bonds, or any stated percentage thereof, for the purpose of exercising and prosecuting on behalf of the holders in the manner and under conditions provided in the resolution authorizing the bonds.
(b) The Treasurer or other trustee acting on behalf of bondholders shall have and possess all the powers necessary or convenient for the exercise of any functions specifically set forth in this chapter or incident to the general representation of bondholders in the enforcement and protection of their rights.

25395.559.
 (a) The department may provide for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of those bonds, and for any purpose of the department. The issuance of those obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the department in respect of the same shall be governed by the provisions of this chapter that relate to the issuance of bonds, insofar as those provisions may be appropriate therefor.
(b) Refunding bonds issued as provided in this section may be sold, or exchanged for outstanding bonds issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of those outstanding bonds. Pending the application of the proceeds of any such refunding bonds, with any other available moneys, (1) to the payment of the principal, accrued interest, and any redemption premium on the bonds being refunded, (2) to the payment of any interest on such refunding bonds, or (3) to any expenses incurred in connection with such refunding, such proceeds may be invested in those obligations as are permitted under the bond resolution authorizing the issuance of refunding bonds.

25395.560.
 The state hereby pledges to and agrees with the holders of any bonds issued under this chapter that the state will not limit or alter the rights hereby vested in the department to fulfill the terms of any agreements made with the holders thereof or in any way impair the rights and remedies of those holders until those bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of those holders, are fully met and discharged. The department may include this pledge and agreement of the state in any agreement with the holders of those notes or bonds.

25395.561.
 Any action or proceeding challenging the validity of revenue bonds or refunding bonds issued under this chapter shall be brought in accordance with, and within the time specified in, Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. The Superior Court of the County of Sacramento shall have jurisdiction of, and the County of Sacramento shall be the appropriate venue for any suit, action, or proceedings by the trustee on behalf of bondholders.

SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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.Chapter 6.84 (commencing with Section 25395.500) is added to Division 20 of the Health and Safety Code, to read:
6.84.The Contaminated Land and Water Cleanup Act of 2022
25395.500.

This chapter shall be known, and may be cited, as the Contaminated Land and Water Cleanup Act of 2022.

25395.501.

The Legislature finds and declares all of the following:

(a)“Brownfield” is the technical name for an underused or abandoned industrial or commercial property that is suspected, actually, or perceived to be environmentally contaminated. Brownfields can range from old factories and railyards to vacant warehouses, and from defunct gas stations, oil wells, and energy facilities to former dry cleaning establishments and landfills.

(b)The United States Government Accountability Office has estimated that there are over 450,000 brownfield sites in the United States. And, according to the California Environmental Protection Agency, California is home to almost 90,000 of these sites. The number is likely much higher.

(c)Throughout California, the need to address the brownfields challenge is growing. Over the last several decades, the state’s industrial manufacturing base and petroleum industry has declined and landfills have closed, and many urban and rural areas are now saddled with polluted, idle, or underutilized properties.

(d)These brownfield sites can and should be cleaned up and placed to safe, productive, community-enhancing, and sustainable use. Safe, sustainable brownfields cleanup and reuse promotes, among other things, all of the following:

(1)Environmental and ecological health.

(2)Community revitalization.

(3)Environmental justice goals.

(4)Housing production and affordability.

(5)Reduced sprawl and conservation of open spaces.

(6)Creation of jobs.

(7)Local and regional economic prosperity.

(8)Increased tax base.

(9)Reduced greenhouse gas emissions as compared to business as usual.

(10)Creation of new public parklands and open space.

(e)California has been a leader in safe, sustainable brownfields cleanup and community revitalization. California has a record of successfully transforming brownfield sites into a wide variety of uses, including, among others, housing developments, retail sites, office parks, community parks, and solar energy production centers.

(f)The safe, sustainable revitalization of brownfields with community engagement is a key tool in achieving environmental justice goals.

(g)Communities that lack access to safe, clean parks, open space, and trails, as well as affordable housing, are disproportionately impacted by the enduring and perceived conditions at or emanating from brownfield sites.

(h)The safe, sustainable cleanup and reuse of brownfield sites for purposes such as parks and restored natural areas will advance California’s commitment to conserving 30 percent of its lands by 2030, also known as “30 X 30,” especially in urban disadvantaged communities.

25395.502.

For purposes of this chapter, the following terms have the following meanings:

(a)“Bank” means the California Infrastructure and Economic Development Bank.

(b)“Brownfield site” means any of the following:

(1)A high-reuse opportunity site for which no application to the department is required and that is authorized to receive funds for investigation, public engagement, and applicable sustainable cleanup, closure, and postclosure requirements.

(2)A hazardous waste site that is listed pursuant to Section 65962.5 of the Government Code.

(3)A hazardous substance release site designated by the department pursuant to Section 25356.

(4)(A)A landfill or other real property where the expansion, redevelopment, or reuse of the property is complicated by the presence or potential presence of hazardous materials.

(B)For purposes of this paragraph, “hazardous material” means a substance or waste that, because of its physical, chemical, or other characteristics, may pose a risk of endangering human health or safety or of degrading the environment. “Hazardous material” includes, but is not limited to, all of the following:

(i)A hazardous substance, as defined in Section 25281 or 25316.

(ii)A hazardous waste, as defined in Section 25117.

(iii)A waste, as defined in Section 13050 of the Water Code.

(c)“Department” means the Department of Toxic Substances Control.

(d)“Eligible entities” includes all of the following:

(1)A city, county, district, or agency, or any subdivision or combination thereof.

(2)A nonprofit organization.

(3)A private sector entity.

(e)“Fund” means the Contaminated Land and Water Cleanup Revolving Loan Fund established pursuant to subdivision (a) of Section 25395.504.

(f)“Revolving loan program” means the Contaminated Land and Water Cleanup Revolving Loan Program created by the department pursuant to Section 25395.503.

25395.503.

(a)The department shall create the Contaminated Land and Water Cleanup Revolving Loan Program to provide financing, including low-interest loans, to eligible entities to finance the remediation of, or to offset the cost of remediating, brownfield sites.

(b)On or before January 1, 2024, the department shall adopt, and post on its internet website, criteria and guidelines for eligible entities to apply for, and be awarded, financing, including low-interest loans, for the purpose set forth in subdivision (a).

25395.504.

(a)There is hereby created in the State Treasury the Contaminated Land and Water Cleanup Revolving Loan Fund, to be administered by the department, for the purpose set forth in subdivision (a) of Section 25395.503.

(b)Upon request of the department, the bank shall make recommendations regarding the specific financing mechanisms and risk mitigation measures necessary and appropriate for the successful administration of the fund. Recommendations may include identifying available funds to make direct loans, or to capitalize trust funds for the purpose of guaranteeing loans made by a participating lender. Recommendations may also include a proposal for the issuance of revenue bonds by the bank, if feasible.

(c)Upon appropriation by the Legislature for purposes of the revolving loan program, the department may provide, either as a sole lender or in participation or syndication with other lenders, low-interest loans from the fund to eligible entities in accordance with an agreement, or agreements, between the department and eligible entities. The department may cease providing loans when there are insufficient moneys in the fund to do so.

(d)All moneys received for repayment of a loan, and any penalties, interest, and fees in connection with a loan, provided for purposes of the revolving loan program shall be deposited in the fund, for appropriation by the Legislature. Penalty moneys in the fund shall be available, upon appropriation by the Legislature, for additional loans authorized under this chapter.

(e)The department may use moneys in the fund, upon appropriation by the Legislature for this purpose, for administrative costs incurred in implementing the revolving loan program.