California and Community Choice Aggregation (CCA)
California provides the ideal launch pad for the new clean utility business model because of the combination of its Community Choice Aggregation (CCA) and Community Facilities District (CFD) laws. The CCA law (AB 117) gives cities and counties the authority to take the energy supply side of the Investor Owned Utilities’ business and turn it over to companies that commit to providing a higher percentage of clean power than the fossil-fuel-based, centralized utilities. The CFD law (SB555) and/or PACE (AB811) create the financing mechanisms which allow 100% of renewable energy and energy efficiency improvements to be funded with private capital, secured against the land rather than the borrower, and repaid on the property tax roll, senior to the mortgage. Sonoma County’s early commitment to both CCA and the tax roll financing mechanism make it the ideal jurisdiction for demonstration of the business model. Check out the videos below to find out more about Community Choice Aggregation and Property Assessed Clean Energy (PACE) and how they can help cities move toward a clean-energy future.