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SB-83 Sea Level Rise Revolving Loan Program.(2021-2022)



Current Version: 04/29/21 - Amended Senate Compare Versions information image


SB83:v98#DOCUMENT

Amended  IN  Senate  April 29, 2021

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, Division 20.6.6 (commencing with Section 30975) to the Public Resources Code, relating to coastal resources, and making an appropriation therefor. resources.


LEGISLATIVE COUNSEL'S DIGEST


SB 83, as amended, 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.

Existing law establishes in state government the Ocean Protection Council. Existing law requires the council to, among other things, establish policies to coordinate the collection, evaluation, and sharing of scientific data related to coastal and ocean resources among agencies. Existing law establishes the State Coastal Conservancy with prescribed powers and responsibilities for implementing and administering various programs intended to preserve, protect, and restore the state’s coastal areas.
This bill would create require the council, in consultation with the conservancy, to develop the Sea Level Rise Revolving Loan Program within the I-Bank to provide for purposes of providing low-interest loans to local jurisdictions for the purchase of coastal properties in their jurisdictions identified as vulnerable coastal property. property, as provided. The bill would require the California Coastal Commission, council, 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, other state planning and coastal management agencies, as provided, to determine adopt 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 from the conservancy if the local jurisdiction develops and submits to the bank conservancy a vulnerable coastal property plan. The bill would require the California Coastal Conservancy conservancy to review the plans to determine whether they meet the required criteria and guidelines 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. Fund, to be administered by the conservancy, for purposes of providing, upon appropriation, the low-interest loans to eligible local jurisdictions, as provided. The bill would also require that loan repayments, fees, and penalties be deposited in the revolving fund for specified uses including, uses, upon appropriation by the Legislature, including 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: YESNO   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:
5.5.Sea Level Rise Revolving Loan Program

SECTION 1.

 Division 20.6.6 (commencing with Section 30975) is added to the Public Resources Code, to read:

DIVISION 20.6.6 Sea Level Rise Revolving Loan Program

63047.5.30975.
 This article division shall be known, and may be cited, as the Sea Level Rise Revolving Loan Program.

63047.51.30976.
 The Legislature finds and declares all of the following:
(a) Anthropogenic Climate Change 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 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.

63047.52.30977.
 The following definitions, in addition to the definitions contained in Section 63010, definitions shall apply for purposes of this article: division:
(a) “Bank” means the California Infrastructure and Economic Development Bank.
(b) “Conservancy” means the State Coastal Conservancy.
(c) “Council” means the Ocean Protection Council established pursuant to Section 35600.
(d) “Fund” means the Sea Level Rise Revolving Loan Fund established pursuant to Section 30980.

(a)

(e) “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)

(f) “Vulnerable Coastal Property” coastal property means any coastal property, building, improved land containing a 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 council pursuant to Section 63047.53. 30978.

63047.53.30978.
 (a) The bank, council, in consultation with the California Coastal Conservancy and the California Coastal Commission, conservancy, shall develop and administer the Sea Level Rise Revolving Loan Program for the purposes of administering the Sea Level Rise Revolving Loan Fund. Program. The program shall provide low-interest loans to local jurisdictions for the purchase of coastal properties in their jurisdictions identified as vulnerable coastal property. property, pursuant to this division.
(b)  Before January 1, 2023, the California Coastal Conservancy, council, in consultation with other state planning and coastal management agencies, including, but not limited to, the Office of Planning and Research, the Strategic Growth Council, the California Coastal Commission, the State Lands Commission, and any other applicable state, federal, and local entities with relevant jurisdiction and expertise, the conservancy, and the San Francisco Bay Conservation and Development Commission, shall do both of the following:
(1) Determine Adopt 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: to, all of the following:
(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. no longer habitable.
(2) Provide Post 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 on the council’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).

63047.54.30979.
 (a) A local jurisdiction may apply for, and may be awarded, a low-interest loan through the Sea Level Rise Revolving Loan Program from the conservancy only if the local jurisdiction completes both of the following:
(1) Develops and submits to the bank conservancy a vulnerable coastal property plan for the jurisdiction that is approved by the California Coastal Conservancy. its jurisdiction. 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. council pursuant to Section 30978.
(B) The acquisition process for any and timeframe for the local jurisdiction to acquire the vulnerable coastal property included in the plan.
(C) The lease agreement for for, or plan for leasing, any vulnerable coastal property included in the plan. plan that demonstrates the rental income is sufficient to repay the loan.
(D) The management plan for any vulnerable coastal property included in the plan. plan that covers the time period necessary to repay the loan.

(E)The expected time period for acquisition of any vulnerable coastal property included in the plan.

(E) An explanation of how any structure included in the plan will be removed from the property when it can no longer be safely occupied without need for a shoreline protective device.
(2) All other requirements imposed by the bank conservancy under this article. division.
(b) The conservancy shall review a vulnerable coastal property plan submitted by a local jurisdiction pursuant to this section, and, if it determines the plan meets the criteria and guidelines pursuant to Section 30978, the conservancy shall approve the plan in writing. If the conservancy finds the plan does not meet the criteria and guidelines, the conservancy shall return the plan to the local jurisdiction with a clear explanation of why the plan fails to meet the criteria, and, if practicable, suggestions for improving the plan.

(b)

(c) (1) If awarded a loan under this article, section, 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 to acquire vulnerable coastal properties included in this program.

63047.55.30980.
 (a) There is hereby created in the State Treasury the Sea Level Rise Revolving Loan Fund Fund, to be administered by the conservancy, 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. division.

(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.

(b) Upon request of the conservancy, 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) In addition to any other financing provided pursuant to this division, the bank The conservancy, upon appropriation by the Legislature for these purposes, may provide low-interest loans from the Sea Level Rise Revolving Loan Fund fund for purposes of the Sea Level Rise Revolving Loan Program to any local jurisdiction that meets the requirements of Section 63047.53, Sections 30978 and 30979 in connection with the financing or refinancing of a vulnerable coastal property in accordance with an agreement, or agreements, between the bank conservancy 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. fund, for appropriation by the Legislature. Penalty moneys in the revolving fund shall be available, upon appropriation by the Legislature, for additional loans authorized under the article. this division.
(e) The bank conservancy may use moneys in the Sea Level Rise Revolving Loan Fund fund, upon appropriation for this purpose, 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. Program.