SECTIONS 25442-25443.5 - California Statutes

PUBLIC RESOURCES CODE

SECTION 25442-25443.5

25442. The commission shall provide loans to local jurisdictions
for all of the following purposes:
(a) Purchase, maintenance, and evaluation of energy efficient
equipment for existing and new facilities, including, but not limited
to, equipment related to lights, motors, pumps, water and wastewater
systems, boilers, heating, and air conditioning.
(b) Purchase, maintenance, and evaluation of small power
production systems, including, but not limited to, wind,
cogeneration, photovoltaics, geothermal, and hydroelectric systems.
(c) Improve the operating efficiency of existing local
transportation systems.

25442.5. The commission may award financial assistance for project
audits, feasibility studies, engineering and design, and legal and
financial analysis related to the purposes of Section 25442.

25442.7. (a) Loans under this article may not exceed five million
dollars ($5,000,000) for any one local jurisdiction unless the
commission determines, by unanimous vote, that the public interest
and objectives of this chapter would be better served at a higher
loan amount.
(b) Loan repayments shall be made in accordance with a schedule
established by the commission. Repayment of loans shall be made in
full unless the commission determines, by unanimous vote, that the
public interest and objectives of this chapter would be better served
by negotiating a reduced loan repayment for a project that fails to
meet the technical or financial performance criteria through no fault
of the local jurisdiction.

25443. (a) Principal and interest payments on loans under this
article shall be returned to the commission and shall be used to make
additional loans to local jurisdictions pursuant to Section 25442 or
to provide financial assistance to local jurisdictions pursuant to
Section 25441.
(b) Notwithstanding any other provision of law, the commission
shall, unless it determines that the purposes of this chapter would
be better served by establishing an alternative interest rate
schedule, periodically set interest rates on the loans based on
surveys of existing financial markets and at rates not less than 3
percent per annum.

25443.5. (a) In furtherance of the purposes of the commission as
set forth in this chapter, the commission has the power and authority
to do all of the following:
(1) Borrow money, for the purpose of obtaining funds to make loans
pursuant to this chapter, from the California Economic Development
Financing Authority, the California Infrastructure and Economic
Development Bank, and the California Consumer Power and Conservation
Financing Authority from the proceeds of revenue bonds issued by any
of those agencies.
(2) Pledge, to provide collateral in connection with the borrowing
of money pursuant to paragraph (1), loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410), or the
principal and interest payments on loans made pursuant to this
chapter or Chapter 5.2 (commencing with Section 25410).
(3) Sell loans made pursuant to this chapter or Chapter 5.2
(commencing with Section 25410), at prices determined in the sole
discretion of the commission, to the California Economic Development
Financing Authority, the California Infrastructure and Economic
Development Bank, and the California Consumer Power and Conservation
Financing Authority to raise funds to enable the commission to make
loans to eligible institutions.
(4) Enter into loan agreements or other contracts necessary or
appropriate in connection with the pledge or sale of loans pursuant
to paragraph (2) or (3), or the borrowing of money as provided in
paragraph (1), containing any provisions that may be required by the
California Economic Development Financing Authority, the California
Infrastructure and Economic Development Bank, or the California
Consumer Power and Conservation Financing Authority as conditions of
issuing bonds to fund loans to, or the purchase of loans from, the
commission.
(b) In connection with the pledging of loans, or of the principal
and interest payment on loans, pursuant to paragraph (2) of
subdivision (a), the commission may enter into pledge agreements
setting forth the terms and conditions pursuant to which the
commission is pledging loans or the principal and interest payment on
loans, and may also agree to have the loans held by bond trustees or
by independent collateral or escrow agents and to direct that
payments received on those loans be paid to those trustee,
collateral, or escrow agents.
(c) The commission may employ financial consultants, legal
advisers, accountants, and other service providers, as may be
necessary in its judgment, in connection with activities pursuant to
this chapter.
(d) Notwithstanding any other provision of law, this chapter
provides a complete, separate, additional, and alternative method for
implementing the measures authorized by this chapter, including the
authority of the eligible institutions or local jurisdictions to have
borrowed and to borrow in the future pursuant to loans made pursuant
to this chapter or Chapter 5.2 (commencing with Section 25410), and
is supplemental and additional to powers conferred by other laws.