California Assembly Bill AB450 Amended / Bill

 BILL NUMBER: AB 450AMENDED BILL TEXT AMENDED IN SENATE JUNE 9, 2016 INTRODUCED BY Assembly Member McCarty FEBRUARY 23, 2015  An act to amend Section 39712 of the Health and Safety Code, relating to greenhouse gas.   An act to amend Sections 5898.12, 5898.21, 5898.24, 5898.28, and 5899.2 of, and to add Section 5899.4 to, the Streets and Highways Code, relating to contractual assessments.  LEGISLATIVE COUNSEL'S DIGEST AB 450, as amended, McCarty.  Greenhouse gas: energy efficiency: financing.   Contractual assessments.   The Improvement Act of 1911 authorizes the legislative body of any public agency, as defined, to determine that it would be convenient, advantageous, and in the public interest to designate an area within the public agency, as specified, within which authorized public agency officials and property owners may enter into voluntary contractual assessments to finance, among other improvements, the installation of distributed generation renewable energy sources or energy or water efficiency improvements that are permanently fixed to real property, as specified. The act prohibits the use of voluntary contractual assessments to finance facilities for parcels in connection with the initial construction of residential buildings unless the initial construction is undertaken by the intended owner or occupant.   This bill would authorize the use of voluntary contractual assessments to finance authorized improvements in connection with the initial construction of residential buildings with 3 or fewer units if the initial construction of the residential buildings are undertaken by the intended owner or occupant. The bill would authorize the use of voluntary contractual assessments to finance authorized improvements in connection with the initial construction of nonresidential buildings or residential buildings with 4 or more units. The bill would authorize the use of voluntary contractual assessments by one or more property owners to finance authorized improvements on real property other than the property on which the assessment is levied.   The act authorizes a public agency to issue bonds to finance improvements that are repaid through voluntary contractual assessments.   This bill would specify that the interest rate on a bond that is payable from one or more contractual assessments levied on nonresidential or residential property with 4 or more units is considered to be fixed as long as the interest rate on each unpaid contractual assessment that secures the bonds is fixed at the time of the bond issuance.   The act authorizes a public agency to transfer its right, title, and interest in and to any voluntary contractual assessments if bonds are not issued. The act requires the public agency and transferee to enter into an agreement that, among other things, identifies the specific period of time during which the transfer of voluntary contractual assessments will be operative.   This bill would additionally require the agreement, among other things, to identify the amounts to be paid by the transferee as consideration for the transfer. The bill would authorize public agencies to issue bonds to repay a transferee of the right, title, and interest in and to any voluntary contractual assessments that were transferred.   The act specifies that, with respect to bonds issued to finance improvements to nonresidential property or residential property with 4 or more units, the redemption premium associated with a redemption of bonds as a result of a contractual assessment repayment is to be determined by agreement of the public agency issuing the bonds, the property owner, and the initial purchaser of the bonds.   This bill would specify that, with respect to bonds payable from contractual assessments levied on residential property with 3 or fewer units, the redemption premium associated with a redemption of bonds as a result of a contractual assessment prepayment is to be determined by agreement of the public agency issuing the bonds and the initial purchaser of the bonds, but not to exceed 5%. The bill would specify, with respect to bonds that are payable from contractual assessments levied on nonresidential properties or residential properties with 4 or more units, the manner in which the redemption premium associated with a redemption of bonds as a result of a contractual assessment prepayment is to be determined.   The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.   Existing law authorizes a public agency to issue revenue bonds (PACE bonds) that are secured by a voluntary contractual assessment agreed to between the public agency and a property owner to finance the installation of distributed generation renewable energy sources or energy or water efficiency improvements that are permanently affixed on the owner's real property.   Existing law requires the California Alternative Energy and Advanced Transportation Financing Authority to develop and administer a PACE Reserve program to reduce the overall costs to property owners of PACE bonds by providing a reserve of no more than 10% of the initial principal amount of the PACE bonds.   This bill would authorize the use of the moneys in the Greenhouse Gas Reduction Fund to provide funding for the implementation of the PACE Reserve program.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 5898.12 of the   Streets and Highways Code   is amended to read:  5898.12. (a) It is the intent of the Legislature that this chapter should be used to finance public improvements to lots or parcels that are developed and where the costs and time delays involved in creating an assessment district pursuant to other provisions of this division or any other law would be prohibitively large relative to the cost of the public improvements to be financed. (b) It is also the intent of the Legislature that this chapter should be used to finance the installation or prepaid service contract, or both, of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property. (c) It is also the intent of the Legislature to address chronic water needs throughout California by permitting voluntary individual efforts to improve water efficiency. The Legislature further intends that this chapter should be used to finance the installation of water efficiency improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property, including, but not limited to, recycled water connections, synthetic turf, cisterns for stormwater recovery, and permeable pavement.  (d) It is also the intent of the Legislature that a public agency in the process of establishing an assessment program, to the extent feasible, use a good faith effort to provide advance notice of the proposed program to water and electric service providers in the relevant service area, as set forth in Section 5898.24, to allow the most efficient coordination and collaboration between the public agency and water and electric service providers.   (e)   (d) This chapter  shall not   may  be used to finance  facilities for parcels   authorized improvements  in connection with the initial construction of a residential  building, unless   building with three or fewer units, only if  the initial construction  of the residential building  is undertaken by the intended owner or occupant.  (e) This chapter may be used to finance authorized improvements in connection with the initial construction of a nonresidential building or a residential building with four or more units.  (f) This chapter shall not be used to finance the purchase or installation of appliances that are not permanently fixed to residential, commercial, industrial, agricultural, or other real property. (g) Assessments may be levied pursuant to this chapter only with the free and willing consent of the owner of each lot or parcel on which an assessment is levied at the time the assessment is levied.  (h) This chapter may be used by one or more property owners to finance the improvements authorized by this chapter that are permanently affixed on real property other than the property on which the assessment is levied.   (i) An improvement is permanently affixed to real property for purposes of this chapter even though the improvement may be temporarily removed for repairs or maintenance.   SEC. 2.   Section 5898.21 of the   Streets and Highways Code   is amended to read:  5898.21. Notwithstanding any other provision of this chapter, upon the written consent of an authorized public agency official, the proposed arrangements for financing the program pertaining to the installation of distributed generation renewable energy sources or energy or water efficiency improvements that are permanently fixed to real property may authorize the property  owner   owner, the owner of the attached system, or a designee of that owner,  to purchase directly the related equipment and materials for the installation of distributed generation renewable energy sources or energy or water efficiency improvements and to contract  directly   directly, or pay,  for the installation of distributed generation renewable energy sources or energy or water efficiency improvements that are permanently fixed to  the property owner's   the  residential, commercial, industrial, agricultural, or other real property.  SEC. 3.   Section 5898.24 of the   Streets and Highways Code   is amended to read:  5898.24. (a) A legislative body shall publish notice of a hearing pursuant to Section 6066 of the Government Code, and the first publication shall occur not later than 20 days before the date of the hearing.  (b) A legislative body shall provide written notice of a proposed contractual assessment program to all water or electric providers within the boundaries of the area within which voluntary contractual assessments may be entered into not less than 60 days prior to adoption of any resolution pursuant to Section 5898.26.   (c)  (b)  (1) A legislative body administering a voluntary contractual assessment program shall designate an office, department, or bureau of the  local   public  agency that shall be responsible for annually preparing the current roll of assessment obligations by assessor's parcel number on property subject to a voluntary contractual assessment. (2) The designated office, department, or bureau shall establish procedures to promptly respond to inquiries concerning current and future estimated liability for a voluntary contractual assessment. Neither the designated office, department, or bureau, nor the legislative body, shall be liable if any estimate of future voluntary contractual assessment liability is inaccurate, nor for any failure of any seller to request notice pursuant to this chapter or to provide the notice to a buyer.  (d)   (c)  For purposes of enabling sellers of real property subject to a voluntary contractual assessment to satisfy the notice requirements of Section 1102.6b of the Civil Code, and, except as provided in subdivision (e),  the legislative body shall cause to be recorded in the office of the county recorder for the county in which the real property is located, concurrently with the  instrument creating the voluntary contractual assessment,   notice required by Section 5898.32,  a separate document that meets all of the following requirements: (1) The title of the document shall be "Payment of Contractual Assessment Required" in at least 14-point boldface type. (2) The document shall include all of the following information: (A) The names of all current owners of the real property subject to the contractual assessment and the legal description and assessor' s parcel number for the affected property. (B) The annual amount of the contractual assessment. (C) The date or circumstances under which the contractual assessment expires, or a statement that the assessment is perpetual. (D) The purpose for which the funds from the contractual assessment will be used. (E) The entity to which funds from the contractual assessment will be paid and specific contact information for that entity. (F) The signature of the authorized representative of the legislative body to which funds from the contractual assessment will be paid.  (e)   (d)  The recorder shall only be responsible for examining the document required by subdivision  (d)   (c)  and determining that it contains the information required by subparagraphs (A), (E), and (F) of paragraph (2) of subdivision  (d).   (c).  The recorder shall index the document under the names of the persons and entities identified in subparagraphs (A) and (E) of paragraph (2) of subdivision  (d).   (c).  The recorder shall not examine any other information contained in the document required by subdivision  (d).   (c).   (f)   (e)  In order to reduce the costs associated with contractual assessments, a legislative body  administering a voluntary contractual assessment program  may authorize the document described in subdivision  (d)   (c)  to be combined with the notice required by Section 5898.32, and recorded as a single document.  If the legislative body authorizes the single document described in this subdivision and that document is presented for recordation to a county recorder, the county recorder shall accept that document for recordation and shall not require the public agency to separately prepare and record the document described in subdivision (c) and the document required by Section 5898.32.   SEC. 4.   Section 5898.28 of the   Streets and Highways Code   is amended   to read:  5898.28. (a)  (1)    A public agency may issue bonds pursuant to this chapter, the principal and interest for which would be repaid by voluntary contractual assessments. A public agency may advance its own funds to finance work to be repaid through voluntary contractual assessments, and may from time to time sell bonds to reimburse itself for those advances. A public agency may enter into a relationship with an underwriter or financial institution that would allow the sequential issuance of a series of bonds, each bond being issued as the need arose to finance work to be repaid through voluntary contractual assessments. The interest rate of each bond may be determined by an appropriate index, but shall be fixed at the time each bond is issued unless the bond is  issued to finance improvements to   payable from one or more contractual assessments levied on  nonresidential private property or residential private property with four or more units.  The interest rate on that bond shall be considered fixed as long as the interest rate on each unpaid contractual assessment that secures the bond is fixed at the time the bond is issued.  Bond proceeds may be used to establish a reserve fund for debt service or paying the costs of foreclosure on properties participating in the program, to fund capitalized interest for a period up to two years from the date of issuance of the bonds, to fund the administrative fee required for participation in the PACE Reserve Program established pursuant to Chapter 4 (commencing with Section 26050) of Division 16 of the Public Resources Code, and to pay for expenses incidental to the issuance and sale of the bonds. Division 10 (commencing with Section 8500) shall apply to any bonds issued pursuant to this section, insofar as that division is not in conflict with this chapter.  (2) An assessment contract may define the term of the voluntary contractual assessment and the rate at which interest will accrue on the voluntary contractual assessment, describe the terms under which the assessment may be prepaid, identify a schedule of installments that include principal, interest, and administrative expense components, and provide for the use of the proceeds that may be generated as a result of the voluntary contractual assessment. During the term of a voluntary contractual assessment, the public agency may levy the installments described in the assessment contract. If bonds are issued after an assessment contract is executed and delivered by a public agency and a property owner, the installments payable under the assessment contract shall thereafter be used only to pay debt service on the bonds, a power purchase agreement or lease pursuant to Section 5899.2, or the public agency's costs incidental to financing, administration, and collection of the voluntary contractual assessment.  (b) (1) Notwithstanding any provision of this division or the Improvement Act of 1915 (Division 10 (commencing with Section 8500)), a public agency may transfer its right, title, and interest in and to any voluntary contractual assessments, if bonds  have not been issued pursuant to subdivision (a).   are not payable for the assessments.  The public agency and the transferee shall enter into an agreement that, among other things, identifies  the amount to be paid by the transferee as consideration for the transfer and use of that amount paid by the transferee to the public agency, the commencement date for the accrual of interest on the voluntary contractual assessment, the capitalizing of interest, if applicable, the timing for payment of the voluntary contractual assessment installments of the transferee if received by the public agency, and  the specific period of time during which the transfer of voluntary contractual assessments will be operative, not to exceed three years.  The agreement may provide that if at the end of the term of the transfer of the voluntary contractual   assessments the public agency is unable to repay the transferee, the public agency may transfer the voluntary contractual assessments for the length of their term, so long as, notwithstanding any other limitations set forth in this chapter, no installment of the voluntary contractual assessments will increase as a result of the transfer without the prior written consent of the affected property owner. The public agency may enter into an agreement with a trustee, fiscal agent, or payment agent to hold, invest, and distribute the amounts paid by the transferee to the public agency as consideration for the transfer and the voluntary contractual assessments if received by the public agency.  Except as provided in paragraph (2), a transfer of any voluntary contractual assessments under this subdivision shall be treated as a true and absolute transfer of the asset so transferred for the period of the transfer and not as a pledge or grant of a security interest by the public agency for any borrowing. The characterization of the transfer of any of those assets as an absolute transfer by the public agency shall not be negated or adversely affected by the fact that only a portion of any voluntary contractual assessment is transferred, nor by any characterization of the transferee for purposes of accounting, taxation, or securities regulation, nor by any other factor whatsoever. As used in this section, "transfer" means sale, assignment, or other transfer. (2) Nothing in this subdivision shall be construed to authorize the transferee to initiate and prosecute a foreclosure action resulting from a delinquency in the payment of the voluntary contractual assessment. Initiation and prosecution of a foreclosure action shall remain the responsibility of the public agency, which shall retain the sole right to enforce its senior lien  status.   status for the benefit of the public agency and any transferee. As a cumulative remedy, if any assessment or installment thereof, or any interest thereon, together with any penalties, costs, fees, and other charges accruing under applicable taxation provisions are not paid when due, the public agency may order that the same be collected by an action brought in the superior court to foreclose the lien as provided in this division, and this division shall be construed in a manner that accomplishes the purposes of this paragraph. In connection with the transfer of its right, title, and interest in and to any voluntary contractual assessment, the public agency may covenant for the benefit of the transferee to commence and diligently prosecute any foreclosure   action regarding delinquent installments of any assessments.   (3) A public agency may issue bonds under this chapter to repay a transferee of the right, title, and interest in and to any voluntary contractual assessment under this subdivision. The public agency may transfer or cause to be transferred, to the trustee, fiscal agent, or payment agent for the bonds, as applicable, funds held with respect to a transfer at the time the bonds are issued.  (c) Division 10 (commencing with Section 8500) shall apply to any bonds issued pursuant to this section, insofar as that division is not in conflict with this chapter. Notwithstanding Part 16 (commencing with Section 8880) of Division 10, if any reserve fund is established in whole or in part with legally available moneys of one or more public agencies other than bond proceeds, the public agency or agencies may provide that a property owner who prepays all or a portion of the assessment shall not be credited with the public agency moneys in the reserve fund and there shall be no reduction in the assessment pursuant to Sections 8884 or 8881, and the public agency moneys in the reserve account shall not be used to redeem bonds pursuant to Section 8885 and any public agency moneys remaining in the reserve fund at the maturity of the bonds shall be disbursed to the public agency free and clear of the lien of the issuing instrument. Any excess bond proceeds may be used to pay principal of and interest on the bonds in addition to any other use permitted by Division 10 (commencing with Section 8500). (d) Notwithstanding any other law, the public agency may conclude that it is in the public interest for bonds issued by the public agency pursuant to this chapter to not be subject to redemption prior to their scheduled maturity date except as a result of the prepayment in whole or in part of contractual assessments. Notwithstanding any other limitations set forth in law,  and   (1)  with respect to bonds  issued to finance improvements to nonresidential property or  that are payable from one or more contractual assessments levied on residential property with  four or more   three or fewer  units, the redemption premium associated with a redemption of bonds as a result of a contractual assessment prepayment shall be determined by agreement of the public agency issuing the  bonds, the property owner, and the initial purchaser of the bonds.   bonds and the initial purchaser of the bonds, but shall not exceed 5 percent, and (2) with respect to bonds that are payable from one or more contractual assessments levied on nonresidential property or residential property with four or more units, (A) the public agency and the property owner may agree that the contractual assessment shall not be subject to prepayment for all or a portion of the time it is unpaid or (B) if the contractual assessment will be subject to prepayment, the redemption premium associated with a redemption of bonds as a result of a contractual assessment prepayment shall be determined by agreement of the public agency issuing the bonds, the pro   perty owner, and the initial purchaser of the bonds. Notwithstanding any other law, the public agency issuing bonds pursuant to this chapter may provide for the bonds to be subject to redemption on any date. The public agency may provide for the redemption of bonds issued pursuant to this chapter from unspent bond proceeds   following the completion of the installation of the improvements at a redemption price equal to the principal amount of the bonds to be redeemed, plus accrued interest to the redemption date, plus a redemption premium specified in the assessment contract, if any, which premium may exceed 5 percent of the principal amount of the bonds to be redeemed only in the case of bonds that are payable from one or more contractual assessments levied on residential property with three or fewer units.  (e) (1) Without the prior written approval of the property owner, and notwithstanding any other law, a public agency may issue bonds pursuant to this chapter to refinance outstanding bonds payable from contractual assessments levied pursuant to this chapter if all of the following are true: (A) The total interest cost to maturity on the refunding bonds is less than the total interest cost to maturity on the bonds to be refunded. (B) The final maturity date of the refunding bonds is not later than the final maturity date of the refunded bonds, except that if the bonds to be refunded are variable rate bonds, the final maturity date of the refunding bonds may extend to, but not beyond, the useful life of the financed improvements. (C) The total interest component of the scheduled contractual assessment installments to maturity, after issuance of the refunding bonds, is less than the total interest component of the scheduled contractual assessment installments to maturity prior to issuance of the refunding bonds. (2) For purposes of this section, in connection with the issuance of fixed rate bonds to refinance variable rate bonds, the interest rate on the refunded bonds for purpose of demonstrating compliance with this section may be assumed to be the maximum possible interest rate on the bonds to be refunded as long as the legislative body concludes that the public interest will be served by issuing fixed rate bonds to refinance the outstanding variable rate bonds. In connection with an issuance of refunding bonds under this chapter, the legislative body may direct that an amendment to the document required by subdivision  (d)   (c) of Section 5898.24 be recorded to reflect the revised contractual assessment installment schedule. (f) With the prior written approval of the owner of nonresidential property or residential property with four or more units, and notwithstanding any other law, a public agency may issue bonds pursuant to this chapter to refinance outstanding bonds payable from contractual assessments levied pursuant to this chapter without complying with subdivision (e). The final maturity date of the refunding bonds issued pursuant to this subdivision may be later than the final maturity date of the bonds being refunded as long as the final maturity date of the refunding bonds does not extend beyond the useful life of the financed improvements.  (g) The assessment contract between the public agency and a property owner shall provide for the use of proceeds of any bonds or other financing arrangement authorized by this chapter, and may provide that the proceeds may be used to make progress payments to a contractor as work is completed on portions of the improvements in a manner that the public agency determines to be reasonable.   SEC. 5.   Section 5899.2 of the   Streets and Highways Code   is amended to read:  5899.2. For the purpose of financing the installation of distributed generation renewable energy sources pursuant to this chapter, "permanently fixed" includes, but is not limited to, systems attached to a residential, commercial, industrial, agricultural, or other real property pursuant to a power purchase agreement or lease between the owner of the system and the owner of the assessed property, if the power purchase agreement or lease contains all of the following provisions: (a) The attached system is an eligible renewable energy resource pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code). (b) The term of the power purchase agreement or lease is at least as long as the term of the related assessment contract. (c) The owner of the attached system agrees to install, maintain, and monitor the system for the entire term of the power purchase agreement or lease. (d) The owner of the attached system is not permitted to remove the system prior to completion of the term of the contractual assessment lien. (e) After installation, the power purchase agreement or  lease   lease, including the costs of operating and maintaining the systems and services incidental to the systems,  is paid, either partially or in full, using the funds from the contractual assessment program.  For purposes of this subdivision, "funds from the contractual assessment program" includes bond proceeds, contractual assessment installments, grants, or other funding sources available to the contractual assessment program, and savings and other monetary benefits that are available as a result of the contractual assessment financing.  (f) The right to receive the electricity from the system, through a power purchase agreement or lease or the right to the system itself, is tied to the ownership of the assessed real property and is required to be automatically transferred with the title to the real property whether the title is transferred by voluntary sale, judicial or nonjudicial foreclosure, or by any other means. (g) The power purchase agreement or lease identifies the public agency that is a party to the assessment contract on the real property as a third-party beneficiary of the power purchase agreement or lease until the assessment lien on the property has been fully paid and, only until that time, prohibits amendments to the power purchase agreement or lease without the consent of the public agency. (h) In order to ensure that the property owner is guaranteed the electric power from the system for the length of the lien, the system shall not be removed if the owner of the attached system is not performing its obligations under the contract, and one of the following is true: (1) The owner of the attached system does both of the following: (A) Covenants in its contract with the property owner that neither the owner of the attached system nor any successor in interest will remove or permanently decommission the attached system during the term of the contract. (B) Warrants in the contract with the property owner that no assignee, creditor, partner, or owner of the attached system's owner has, as of the date of the contract or during the remaining term of the contract, the right to remove or permanently decommission the attached system. (2) The owner of the attached system must be a bankruptcy remote special purpose entity that is bankruptcy remote and meets all of the following conditions: (A) It does not engage in any business other than owning the attached systems and entering into electricity contracts with the  homeowner.     property owner.  (B) It has no material debt. (C) Its contracts are either entered into with unrelated third parties or have terms negotiated at arms length.  SEC. 6.   Section 5899.4 is added to the   Streets and Highways Code  , to read:   5899.4. The Legislature finds and declares that a public purpose will be served by giving public agencies substantial flexibility to establish arrangements that will address concerns of participating bond owners, property owners, mortgage lenders, or state and federal regulatory agencies about the financing available under this chapter. These arrangements may include, but are not limited to, the issuance by a public agency of bonds pursuant to this chapter to redeem outstanding bonds issued by the public agency pursuant to this chapter to accommodate an arrangement authorized by this chapter so long as, notwithstanding any other limitations set forth in this chapter, no installment of a voluntary contractual assessment will increase without the prior written consent of the affected property owner, and unspent proceeds of the outstanding bonds to be redeemed may be applied by the public agency in the manner that it determines will further an arrangement authorized by this chapter.   SECTION 1.   Section 39712 of the Health and Safety Code is amended to read: 39712. (a) (1) It is the intent of the Legislature that moneys shall be appropriated from the fund only in a manner consistent with the requirements of this chapter and Article 9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code. (2) The state shall not approve allocations for a measure or program using moneys appropriated from the fund except after determining, based on the available evidence, that the use of those moneys furthers the regulatory purposes of Division 25.5 (commencing with Section 38500) and is consistent with law. If any expenditure of moneys from the fund for any measure or project is determined by a court to be inconsistent with law, the allocations for the remaining measures or projects shall be severable and shall not be affected. (b) Moneys shall be used to facilitate the achievement of reductions of greenhouse gas emissions in this state consistent with Division 25.5 (commencing with Section 38500) and, where applicable and to the extent feasible: (1) Maximize economic, environmental, and public health benefits to the state. (2) Foster job creation by promoting in-state greenhouse gas emissions reduction projects carried out by California workers and businesses. (3) Complement efforts to improve air quality. (4) Direct investment toward the most disadvantaged communities and households in the state. (5) Provide opportunities for businesses, public agencies, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce greenhouse gas emissions. (6) Lessen the impacts and effects of climate change on the state' s communities, economy, and environment. (c) Moneys appropriated from the fund may be allocated, consistent with subdivision (a), for the purpose of reducing greenhouse gas emissions in this state through investments that may include, but are not limited to, any of the following: (1) Funding to reduce greenhouse gas emissions through energy efficiency, clean and renewable energy generation, distributed renewable energy generation, transmission and storage, and other related actions, including, but not limited to, at public universities, state and local public buildings, and industrial and manufacturing facilities. Funding may also be used for the implementation of Article 2 (commencing with Section 26060) of Chapter 4 of Division 16 of the Public Resources Code. (2) Funding to reduce greenhouse gas emissions through the development of state-of-the-art systems to move goods and freight, advanced technology vehicles and vehicle infrastructure, advanced biofuels, and low-carbon and efficient public transportation. (3) Funding to reduce greenhouse gas emissions associated with water use and supply, land and natural resource conservation and management, forestry, and sustainable agriculture. (4) Funding to reduce greenhouse gas emissions through strategic planning and development of sustainable infrastructure projects, including, but not limited to, transportation and housing. (5) Funding to reduce greenhouse gas emissions through increased in-state diversion of municipal solid waste from disposal through waste reduction, diversion, and reuse. (6) Funding to reduce greenhouse gas emissions through investments in programs implemented by local and regional agencies, local and regional collaboratives, and nonprofit organizations coordinating with local governments. (7) Funding research, development, and deployment of innovative technologies, measures, and practices related to programs and projects funded pursuant to this chapter.