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SB-83 California Infrastructure and Economic Development Bank: Sea Level Rise Revolving Loan Program.(2021-2022)

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Date Published: 12/15/2020 09:00 PM
SB83:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 83


Introduced by Senator Allen

December 15, 2020


An act to add Article 5.5 (commencing with Section 63047.5) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, relating to coastal resources, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 83, as introduced, Allen. California Infrastructure and Economic Development Bank: Sea Level Rise Revolving Loan Program.
The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor’s Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of qualified projects.
This bill would create the Sea Level Rise Revolving Loan Program within the I-Bank to provide low-interest loans to local jurisdictions for the purchase of coastal properties in their jurisdictions identified as vulnerable coastal property. The bill would require the California Coastal Commission, before January 1, 2023, in consultation with the California Coastal Commission, the State Lands Commission, and any other applicable state, federal, and local entities with relevant jurisdiction and expertise, to determine criteria and guidelines for the identification of vulnerable coastal properties eligible for participation in the program. The bill would authorize specified local jurisdictions to apply for, and be awarded, a low-interest loan under the program if the local jurisdiction develops and submits to the bank a vulnerable coastal property plan. The bill would require the California Coastal Conservancy to review the plans to determine whether they meet the required criteria for vulnerable coastal properties to be eligible for participation in the program.
The bill would establish the Sea Level Rise Revolving Loan Fund. The bill would authorize the I-Bank to issue bonds and require the bond revenues be deposited in the Sea Level Rise Revolving Loan Fund to be used for purposes of the Seal Level Rise Revolving Loan Program. The bill would also require that loan repayments, fees, and penalties be deposited in the revolving fund for specified uses including, upon appropriation by the Legislature, for additional loans authorized under the program. By authorizing the I-Bank to issue loans pursuant to the program, the bill would make an appropriation.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 5.5 (commencing with Section 63047.5) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:
Article  5.5. Sea Level Rise Revolving Loan Program

63047.5.
 This article shall be known, and may be cited, as the Sea Level Rise Revolving Loan Program.

63047.51.
 The Legislature finds and declares all of the following:
(a) Anthropogenic Climate Change has been, and will continue to be, a very serious threat to the future of California. Rising global temperatures, and the subsequent melting of polar ice caps, has resulted in an increased rise in Sea levels worldwide with significant ramifications for coastal communities.
(b) Current projections indicate California’s coast will experience a sea level rise of one-half of one foot by 2030, two feet by 2050, and seven feet by 2100. A higher sea level exacerbates the threats of coastal erosion, storm surge, and flood damage along California’s coastline and will very likely result in saltwater intrusion that will threaten drinking water supplies.
(c) Currently, the California coastline is home to 68 percent of the state’s population and is responsible for 80 percent of its gross domestic product. California’s ocean-based economy employs over 500,000 people and is valued at approximately forty-five billion dollars ($45,000,000,000) annually.
(d) Any attempt to properly address the threat of sea level rise must include a broad range of creative climate change mitigation strategies to limit greenhouse gas emissions and the worst impacts of climate change, and must include adaption and resiliency efforts designed to prepare communities for the impacts we cannot avoid.

63047.52.
 The following definitions, in addition to the definitions contained in Section 63010, shall apply for purposes of this article:
(a) “Local jurisdiction” means a city, county, or resource conservation district in which a vulnerable coastal property is located. A county, resource conservation district, or joint powers authority, which may include a state agency, may act as the local jurisdiction for a city or county upon implementation of a memorandum of understanding between the two jurisdictions.
(b) “Vulnerable Coastal Property” means any coastal property, building, or structure, identified by a local jurisdiction that is vulnerable to sea level rise, as determined in accordance with the criteria developed by the California Coastal Conservancy pursuant to Section 63047.53.

63047.53.
 (a) The bank, in consultation with the California Coastal Conservancy and the California Coastal Commission, shall develop and administer the Sea Level Rise Revolving Loan Program for the purposes of administering the Sea Level Rise Revolving Loan Fund. The program shall provide low-interest loans to local jurisdictions for the purchase of coastal properties in their jurisdictions identified as vulnerable coastal property.
(b) Before January 1, 2023, the California Coastal Conservancy, in consultation with the California Coastal Commission, the State Lands Commission, and any other applicable state, federal, and local entities with relevant jurisdiction and expertise, shall do the following:
(1) Determine criteria and guidelines for the identification of vulnerable coastal properties eligible for participation in the Sea Level Rise Revolving Loan Program, including, but not limited to:
(A) Required conditions for coastal properties to be identified as vulnerable coastal properties.
(B) Specific information required to be included in a vulnerable coastal property plan created by a local jurisdiction in order to determine the risks of sea level rise and related risks to that community, including, but not limited to, flooding and erosion.
(C) Criteria, including existing applicable laws and other standards, to identify when a vulnerable coastal property is lost to the sea.
(2) Provide all criteria and guidelines to the bank for adoption under the Sea Level Rise Revolving Loan Program, and post all criteria and guidelines on the California Coastal Conservancy’s internet website.
(3) Review vulnerable coastal property plans submitted by local jurisdictions to determine whether a plan meets the criteria established under this section.
(c) The bank and the California Coastal Conservancy may adopt regulations, rules, guidelines, or other criteria to implement this article. The adoption, amendment, or repeal of a regulation, rule, guideline, or other criteria authorized by this article is hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).

63047.54.
 (a) A local jurisdiction may apply for, and be awarded, a low-interest loan through the Sea Level Rise Loan Program only if the local jurisdiction completes both of the following:
(1) Develops and submits to the bank a vulnerable coastal property plan for the jurisdiction that is approved by the California Coastal Conservancy. The vulnerable coastal property plan shall include all of the following:
(A) An explanation of how the vulnerable coastal property or properties included in the plan meet the criteria developed by the California Coastal Conservancy.
(B) The acquisition process for any vulnerable coastal property included in the plan.
(C) The lease agreement for any vulnerable coastal property included in the plan.
(D) The management plan for any vulnerable coastal property included in the plan.
(E) The expected time period for acquisition of any vulnerable coastal property included in the plan.
(2) All other requirements imposed by the bank under this article.
(b) (1) If awarded a loan under this article, a local jurisdiction shall use the moneys to purchase the vulnerable coastal property or properties included in the vulnerable coastal property plan through a fair and transparent purchase process.
(2) The local jurisdiction shall not use eminent domain for vulnerable coastal properties included in this program.

63047.55.
 (a) There is hereby created in the State Treasury the Sea Level Rise Revolving Loan Fund for the purpose of providing low-interest loans to eligible local jurisdictions in accordance with the Sea Level Rise Revolving Loan Program established under this article.
(b) (1) The bank may issue taxable or tax-exempt revenue bonds pursuant to Chapter 5 (commencing with Section 63070) and deposit the proceeds from the bonds into the revolving fund or use the proceeds to refund bonds previously issued under this article. Bond proceeds may also be used to fund necessary reserves, capitalized interest, or costs of issuance.
(2) Except as may be provided in the governing documents with respect to bond anticipation notes, each of the bonds issued under this article shall, to the extent provided in the governing documents, be payable from, and secured by, all or a portion of the revenues in the revolving fund and the assets of the revolving fund, to the extent the revenues and assets are pledged by the board for those purposes.
(3) Bonds issued under this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the bank, or a pledge of the faith and credit of the state or of any political subdivision, but shall be payable solely from the revolving fund and the assets of the revolving fund, and the security provided by the revolving fund. All bonds issued under this article shall contain on the face of the bonds a statement to the same effect.
(c) In addition to any other financing provided pursuant to this division, the bank may provide low-interest loans from the Sea Level Rise Revolving Loan Fund for purposes of the Sea Level Rise Revolving Loan Program to any local jurisdiction that meets the requirements of Section 63047.53, in connection with the financing or refinancing of a vulnerable coastal property in accordance with an agreement, or agreements, between the bank and the local jurisdiction, either as a sole lender or in participation or syndication with other lenders. The financing shall not exceed the total value of the vulnerable coastal property being financed.
(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 Sea Level Rise Revolving Loan Program shall be deposited in the Sea Level Rise Revolving Loan Fund. Penalty moneys in the revolving fund shall be available, upon appropriation by the Legislature, for additional loans authorized under the article.
(e) The bank may use moneys in the Sea Level Rise Revolving Loan Fund for administrative costs incurred in implementing the Sea Level Rise Revolving Loan Program in an amount determined by the bank and approved by the Department of Finance.