(SACRAMENTO, CA) The California State Assembly passed legislation authored by Assemblymember Bob Blumenfield (D-San Fernando Valley) to help the state's green economy grow and create jobs by encouraging private investments in California-based clean energy companies.

"California is the hub of green jobs and clean technology innovation," said Blumenfield.  "Promoting this growing industry will create good jobs, reduce our dependence on fossil fuels, and reduce California's impact on climate change."

Assembly Bill (AB) 796 is designed to help green technology companies that are positioned to transition from research and development to manufacturing, and from existing manufacturing to full-scale consumer production.  During these pivotal transitions, companies are vulnerable.  They need investment capital, but private lenders may not provide it because the company's product(s) have not proven long-term commercial viability.

AB 796 provides important bridge capital for these emerging green technology companies by covering a portion of the bank's loan-loss reserve requirement – or the money set aside to cover losses from loan defaults or slowed payment on loans - associated with providing these companies lines of credit.  This bill:

• Establishes the Clean Energy and Jobs Incentive Program within the State Treasurer's Office to use loan loss reserve incentives to encourage banks to provide loans to clean energy demonstration, deployment, and manufacturing projects; and
• Doubles to $5 million the maximum allowable loan size made through the existing California Capital Access Program, which is also administered by the State Treasurer to encourage private investment in California-based small businesses.

From 1995 to 2008, inclusive, clean technology manufacturing employment expanded by 19 percent, while overall manufacturing employment dropped by 9 percent.  Between 2005 and 2009, California was the destination of for 60 percent of clean energy investment in North America.

AB 796 is part of Blumenfield's Solar Stimulus Package – a series of bills that expand the use of solar and renewable energy technologies by schools, businesses, and government.  Since 2009, he has worked to enact:

• A sales tax exemption for the design, manufacture, production, or assembly of clean energy technologies;
• A program for the installation of large-scale solar production on state property, and
• A law making solar energy more affordable for colleges and universities.

AB 796 passed with a 53-13 vote and moves to the State Senate for further review.  It is supported by a broad coalition, including environmental advocates and clean energy trade associations.  Additional information is available at http://www.leginfo.ca.gov.

Contact: Anthony Matthews, tel. (916) 319-2040