BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SCR 48|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SCR 48
Author: McGuire (D) and Hueso (D), et al.
Introduced:4/27/15
Vote: 21
SUBJECT: Geothermal Awareness Month and Geothermal Awareness
Day
SOURCE: Author
DIGEST: This resolution recognizes the month of May 2015, as
Geothermal Awareness Month and May 21, 2015, as Geothermal
Awareness Day.
ANALYSIS: This resolution makes the following legislative
findings:
1)California contains the largest amount of geothermal
generating capacity in the United States due to its location
on the Pacific "Ring of Fire" and the tectonic plate
junctions.
2)There are 25 Known Geothermal Resource Areas located in
California, 14 of which have temperatures of 300 degrees
Fahrenheit or greater for commercial geothermal production of
electricity.
3)California currently has 2,565.5 megawatts of installed
electric generation capacity from geothermal resources with an
additional 4,000 megawatts of potential for development.
SCR 48
Page 2
4)Geothermal energy is a reliable baseload renewable energy
source that has been commercially operating in California
since 1960 at the Geysers, the world's most developed
geothermal resource area, which has been providing
Californians with clean, reliable, and affordable electricity
for more than 50 years. Geothermal energy is a clean
renewable energy resource. The operation of the Geysers and
operations in Imperial County help avoid the emissions of 11.6
billion pounds of carbon dioxide annually, which is equivalent
to greenhouse gas emissions from more than 1,050,000 cars
being taken off the road, that would otherwise be emitted by
fossil fuel plants to meet baseload energy needs.
5)The geothermal industry is a major employer in the local
communities where projects are located, providing a diverse
range of full-time employment opportunities as well as
contractor jobs throughout all phases of development and
operation. Geothermal development, from exploration through
construction, spurs local economic growth through jobs, sales
tax revenues, materials and supplies purchase, and purchase of
other associated goods and services.
6)Geothermal energy is essential and complimentary to
California's environmental and economic policies, yet new
fully permitted geothermal projects have failed to keep pace
with the procurement of other renewable resources.
7)The preservation of California's existing geothermal
generation and the development of new geothermal generation
could facilitate the achievement of the state's post-2020
energy and environmental goals.
This resolution:
1)Recognizes the month of May 2015 as Geothermal Awareness Month
to raise awareness of the significant contributions geothermal
energy makes to California's Renewables Portfolio Standard
Program and toward meeting the state's environmental goals to
reduce greenhouse gas emissions.
SCR 48
Page 3
2)Recognizes May 21, 2015, as Geothermal Awareness Day in
California, and urges all citizens to show their support on
that day by learning more about geothermal energy in
California and supporting public events planned by the
geothermal industry.
3)Considers geothermal resources important to California's
future and recognizes the environmental and economic values of
existing and future geothermal energy for the state and local
communities.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified5/6/15)
Geothermal Energy Association
Geysers Geothermal Association
Ormat Technologies, Inc.
OPPOSITION: (Verified5/6/15)
None received
ARGUMENTS IN SUPPORT: The Geothermal Energy Association
(GEA) states in support:
Geothermal energy is locally produced and boosts rural
economies through jobs, royalties, tax payments and more.
While in development, a geothermal power project will
employ hundreds of individuals, especially during well
drilling and construction. Furthermore, a geothermal
facility will create substantial permanent employment. GEA
estimates that a 50MW facility creates about 100 permanent,
SCR 48
Page 4
local jobs. We estimate that this is significantly more
than an equivalent wind, photovoltaic or concentrating
solar project.
Geothermal power benefits communities across the state. In
the south, The Salton Sea Restoration and Renewable Energy
Initiative, a plan to save an important source of water and
minerals in the state, can add up to 1,700 MW of
low-impact, cost-competitive geothermal energy to the
State's power grid. In the north, geothermal companies work
to sustain the production of The Geysers, maximizes the
environmental and economic benefits of the resource for the
benefit of Lake and Sonoma Counties as well as all
Californians.
California has the potential to be a leading geothermal
producer globally, with about 50%, estimated hydrothermal
geothermal resource remaining to be developed. By growing
this sector California has the potential to generate
substantial amount of revenue for the State treasury. Over
the course of 30 to 50 years an average 20 MW facility will
pay nearly $6.3 to $11 million dollars in property taxes.
Additionally In 2013, geothermal power producers paid $29
million dollars in annual property taxes, including $21
million dollars to the State of California.
Prepared by: Jonas Austin / SFA / (916) 651-1520
5/6/15 16:49:56
**** END ****
SCR 48
Page 5