Today's Law As Amended


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AB-2208 California Ports Development and Offshore Wind Infrastructure Bond Act of 2024.(2023-2024)



As Amends the Law Today


SECTION 1.

 Division 49 (commencing with Section 81000) is added to the Public Resources Code, to read:

DIVISION 49. California Ports Development and Offshore Wind Infrastructure Bond Act of 2024

CHAPTER  1. General Provisions
81000.
 This division shall be known, and may be cited, as the California Ports Development and Offshore Wind Infrastructure Bond Act of 2024.
81001.
 The Legislature finds and declares all of the following:
(a) California recognizes the importance of developing clean and renewable energy sources to combat climate change and reduce emissions of greenhouse gases.
(b) Offshore wind generation has the potential to contribute significantly to California’s renewable energy portfolio.
(c) The development of offshore wind generation requires robust port infrastructure to support construction, maintenance, and operations.
(d) Investing in port development is crucial to meeting the state’s climate and offshore wind generation goals, and also creates jobs, stimulates economic growth, and enhances the resilience of California’s coastal community.
(e) The State Energy Resources Conservation and Development Commission, pursuant to Chapter 14 (commencing with Section 25991) of Division 15, has established goals for the development of offshore wind generation.
81002.
 For purposes of this division, the following definitions apply:
(a) “Commission” means the State Energy Resources Conservation and Development Commission.
(b) “Committee” means the California Ports Development and Offshore Wind Infrastructure Finance Committee created pursuant to Section 81102.
(c) “Fund” means the California Ports Development and Offshore Wind Infrastructure Fund created pursuant to Section 81006.
(d) “Socially disadvantaged group” means a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of the group without regard to their individual qualities. These groups include all of the following:
(1) African Americans.
(2) Alaskan Natives.
(3) Asian Americans.
(4) Hispanics.
(5) Native Americans.
(6) Native Hawaiians and Pacific Islanders.
(7) Women.
(e) “State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), as it may be amended from time to time.
(f) “Vulnerable population” means a subgroup of a population within a region or community that faces a disproportionately heightened risk or increased sensitivity to impacts of climate change and that lacks adequate resources to cope with, adapt to, or recover from those impacts.
81003.
 An amount of not more than 5 percent of those moneys allocated for a program funded pursuant to this division may be used to pay the administrative costs of that program.
81004.
 To the extent practicable, a project receiving funding pursuant to this division shall provide workforce education and training, and contracting and job opportunities, for vulnerable populations or socially disadvantaged groups.
81005.
 (a) Notwithstanding Section 10231.5 of the Government Code, the commission shall provide to the Governor and the Legislature regular reports on the progress of projects funded pursuant to this division.
(b) The reports submitted to the Legislature pursuant to subdivision (a) shall be submitted in accordance with Section 9795 of the Government Code.
81006.
 The proceeds of bonds, excluding those issued in accordance with Section 81109, issued and sold pursuant to this division shall be deposited into the California Ports Development and Offshore Wind Infrastructure Fund, which is hereby created in the State Treasury. Moneys in the fund shall be available, upon appropriation by the Legislature, for purposes of this division.
CHAPTER  2. California Ports Development and Offshore Wind Infrastructure
81010.
 (a) The sum of one billion dollars ($1,000,000,000) shall be available, upon appropriation by the Legislature, to the commission to support any of the following activities related to the development of offshore wind generation:
(1) Construction of port facilities for manufacturing, assembly, staging, and integration of entitlements and components for offshore wind generation.
(2) Expansion and improvement of port infrastructure to accommodate vessels involved in the installation, maintenance, and operation of offshore wind generation.
(3) Upgrades to port facilities to support the transportation and storage of offshore wind generation components, including, but not limited to, turbines and blades.
(b) The commission may expend moneys appropriated pursuant to subdivision (a) consistent with the strategic plan developed pursuant to Section 25991.
CHAPTER  3. Fiscal Provisions
81100.
 (a) Bonds in the total amount of one billion dollars ($1,000,000,000), not including the amount of any refunding bonds issued in accordance with Section 81109, may be issued and sold for the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.
(b) The Treasurer shall issue and sell the bonds authorized in subdivision (a) in the amount determined by the committee to be necessary or desirable pursuant to Section 81103. The bonds shall be issued and sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.
81101.
 (a) The bonds authorized by this division shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law and all of the provisions of that law apply to the bonds and to this division and are hereby incorporated in this division as though set forth in full in this division, except that subdivisions (a) and (b) of Section 16727 of the Government Code shall not apply.
(b) For purposes of this division, the references to “committee” in the State General Obligation Bond Law shall mean the California Ports Development and Offshore Wind Infrastructure Finance Committee created in Section 81102, and the references to “board” in the State General Obligation Bond Law shall mean the commission.
81102.
 (a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this division, the California Ports Development and Offshore Wind Infrastructure Finance Committee is hereby created.
(b) The committee consists of the Controller, the chair of the commission, the Treasurer, and the Director of Finance. Notwithstanding any other law, any member may designate a representative to act as that member in the member’s place for all purposes, as though the member were personally present.
(c) The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.
81103.
 The committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds authorized pursuant to this division in order to carry out the actions specified in this division and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.
81104.
 There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds becoming due each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.
81105.
 Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this division and without regard to fiscal years, an amount that equals the total of the following:
(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this division, as the principal and interest become due and payable.
(b) The sum necessary to carry out Section 81107.
81106.
 The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purpose of carrying out this division less any amount withdrawn pursuant to Section 81107 and not yet returned to the General Fund. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division, excluding any refunding bonds authorized pursuant to Section 81109, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 81107 and not yet returned to the General Fund. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited into the fund to be allocated by the board in accordance with this division.
81107.
 For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this division, excluding any refunding bonds authorized pursuant to Section 81109, less any amount loaned pursuant to Section 81106 and not yet repaid, and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited into the fund. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this division.
81108.
 All moneys deposited into the fund that are derived from premium and accrued interest on bonds sold pursuant to this division shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of bond issuance before any transfer to the General Fund.
81109.
 The bonds issued and sold pursuant to this division may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this division includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued refunding bonds. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.
81110.
 Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this division that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds or earnings required or desirable under federal law to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.
81111.
 The proceeds from the sale of bonds authorized by this division are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.
SEC. 2.
 Section 1 of this act shall take effect upon the approval by the voters of the California Ports Development and Offshore Wind Infrastructure Bond Act of 2024, as set forth in Section 1 of this act.
SEC. 3.
 Section 1 of this act shall be submitted to the voters at the next statewide election in accordance with provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters.