BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 771|
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                                 THIRD READING


          Bill No:  SB 771
          Author:   Kehoe (D), et al.
          Amended:  4/13/11
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMM. COMMITTEE  :  10-0, 5/3/11
          AYES:  Padilla, Fuller, Corbett, De León, DeSaulnier, 
            Pavley, Rubio, Simitian, Strickland, Wright
          NO VOTE RECORDED:  Berryhill

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    California Alternative Energy and Advanced 
          Transportation Financing Authority 

           SOURCE  :     Clean Power Campaign



           DIGEST  :    This bill expands the definition of renewable 
          energy under the California Alternative Energy and Advanced 
          Transportation Financing Authority (CAEATFA) to include 
          landfill gas turbines, digester gas turbines, and 
          microturbines. 


           ANALYSIS  :   

           Existing law  

          1.  Requires the CAEATFA to provide bond financing for the 
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          development    
               and commercialization of competitive advanced 
          transportation 
               technologies and facilities utilizing alternative 
          methods and sources of 
               energy.  It is also authorized to approve sales and 
          use tax exemption on 
               tangible personal property utilized for the design, 
          manufacture, 
               production, or assembly of advanced transportation 
          technologies or     
               alternative energy source products, components or 
          systems.  The sales   
               and use tax exemption sunsets January 1, 2021.

          2.  Defines, only for purpose of the CAEATFA, renewable 
          energy to include 
               fuel sources such as wind, solar and geothermal but 
          also includes natural 
               gas turbines and fuel cells.

           This bill

           1.Categorizes as eligible under FIT "continuous clean 
            renewable energy resources" which are defined as those 
            technologies that utilize waste gases from landfills, 
            digesters, or wastewater treatment facilities, produce 
            electricity 8,000 hours a year, and have an emissions 
            profile equivalent or better than the waste gas emission 
            standards adopted by the State Air Resources Board that 
            take effect on January 1, 2013.

          2.Increases the size of projects eligible for the Emerging 
            Renewables Program from 50 kW to 350 kW; exempts 
            "continuous clean renewable energy resources" from the 
            requirement that the resource offset the load on the 
            customer's side of the meter and defines those resources 
            as those that utilize waste gases from landfills, 
            digesters, or wastewater treatment facilities, produce 
            electricity 8,000 hours a year, and have an emissions 
            profile equivalent or better than the waste gas emission 
            standards adopted by the State Air Resources Board that 
            take effect on January 1, 2013.
           

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          Comments
           
           California Alternative Energy and Advanced Transportation 
          Financing Authority  

          CAEATFA was created in 1980 with an authorization of $200 
          million in revenue bonds to finance projects utilizing 
          alternative sources of energy, such as cogeneration, wind 
          and geothermal power. It was renamed in 1994 as currently 
          titled and its charge expanded to include the financing of 
          "advanced transportation" technologies.

          During the energy crisis of 2001, its authority was again 
          expanded, this time to provide financial assistance to 
          public power entities, independent generators, and others 
          for new and renewable energy sources, and to develop clean 
          distributed generation.

          CAEATFA's authority is broad but in practice it has not 
          been utilized until recently.  The State Treasurer has 
          tried to reinvigorate the authority and has launched a 
          sales and use tax exemption program to stimulate green 
          manufacturing as authorized by SB 71 (Padilla, 2010).  

           Comments  

          According to the author's office, a problem exists with 
          renewable programs and opines that as new technologies 
          evolve the renewable programs are not keeping pace leaving 
          some technologies that serve renewable goals ineligible for 
          specified programs particularly those that the author 
          categorizes as "clean continuous renewable energy 
          technologies."  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (5/13/11)

          Clean Power Campaign (Source)
          Flex Energy, Inc.

          Humboldt Waste Management Authority

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           ARGUMENTS IN SUPPORT  :    The Clean Power Campaign states 
          that Senate Bill 771creates a new a new category of 
          "continuous clean renewable energy" to recognize the 
          benefits of technologies that provide baseload electricity 
          and maintain an emissions profile equivalent or better than 
          Air Resources Board 2013 standard.  By creating this new 
          category and allowing for its inclusion in selected clean 
          technology programs managed by the state, SB 771 will serve 
          to achieve the state's effort to improve air quality, 
          accelerate the utilization of clean technologies and 
          promote economic growth by way of investment in the clean 
          technology sector.  


          RM:rm  5/13/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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