BILL NUMBER: AB 796INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Blumenfield FEBRUARY 17, 2011 An act to add Division 16.1 (commencing with Section 26050) to the Public Resources Code, relating to energy, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 796, as introduced, Blumenfield. Energy: clean energy economy. (1) The California Alternative Energy and Advanced Transportation Financing Act requires the California Alternative Energy and Advanced Transportation Financing Authority, in consultation with the State Energy Resources Conservation and Development Commission, to establish criteria for selecting projects related to renewable energy and alternative transportation technologies that would receive financial assistance, including loans, loan loss reserves, interest rate reductions, insurance, guarantees, and other credit enhancement or liquidity facilities, from the authority. This bill would require the state to establish a program to provide financial assistance in the form of loan guarantees and energy output insurance guarantees to California-based entities. (2) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Division 16.1 (commencing with Section 26050) is added to the Public Resources Code, to read: DIVISION 16.1. Clean Energy Economy and Jobs CHAPTER 1. GENERAL PROVISIONS AND DEFINITION 26050. (a) The Legislature finds and declares all of the following: (1) The continued growth of California's clean technology industry is essential to the state's economic solvency and will continue to create California-based jobs. (2) Promoting innovative technologies that reduce dependence on fossil fuels, improve energy efficiency, and reduce carbon emissions will help California meet its environmental targets and increase energy security. (3) From 1995 to 2008, inclusive, clean technology manufacturing employment expanded by 19 percent, while overall manufacturing employment dropped by 9 percent. (4) California's environmental laws have stimulated nine billion dollars ($9,000,000,000) in cumulative venture capital investment from 2005 to 2009, inclusive, including two billion one hundred million dollars ($2,100,000,000) in investment capital in 2009, representing 60 percent of the total investment in North America and more than five times the investment in the state's nearest competitor, Massachusetts. (5) Between 2007 and 2009, California led all other states in clean technology patent registrations, outpacing the second-ranked state, New York, by more than 150. (6) California-based companies have patented more types of electric vehicle battery technology than companies in other states. (7) Attempting to take advantage of California's economic and environmental progress, other states and other countries are providing financial incentives to California clean energy companies to move away from California and establish manufacturing facilities elsewhere. (8) Given the surge in out-of-state and overseas competition and incentives, it is in the state's best interest to immediately incentivize California-based clean technology companies so that they remain in California. (b) It is the intent of the Legislature to promote the development of instate manufacturing facilities and jobs that produce technologies that increase energy efficiency, reduce greenhouse gas emissions, improve air quality, or reduce water pollution. 26051. As used in this division, "California-based entity" has the same meaning as that set forth in Section 25620.5. CHAPTER 2. FINANCIAL ASSISTANCE 26055. (a) The state shall establish a program to provide financial assistance in the form of loan guarantees and energy output insurance guarantees to California-based entities. (b) The program shall approve financial assistance application for an in-state manufacturing project that has reasonable prospects of repayment and sufficient funds to complete the project. (c) The program shall identify qualified lender-applicants to be responsible for the overall financial structure of the financial assistance. (d) The program shall evaluate applications based on need, job development benefit, environmental benefit, and financial risk. (e) To the extent funds are required to implement the program, upon appropriation by the Legislature, the state may use federal funds as authorized by federal law, state special funds, or private funds to develop the program. SEC. 2. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: To expedite the promotion of California-based manufacturing and California-based jobs, the reduction of greenhouse gas emissions, the reduction in air and water pollution, and the reduction in energy consumption by providing, as soon as possible, financial assistance to projects undertaken by California-based companies, thereby preserving the public peace, health, and safety, it is necessary for this measure to take effect immediately.