BILL ANALYSIS Ó
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Date of Hearing: June 15, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
SCR
48 (McGuire) - As Introduced April 27, 2015
SENATE VOTE: 36-0
SUBJECT: Geothermal Awareness Month and Geothermal Awareness
Day.
SUMMARY: This resolution recognizes the month of May 2015, as
Geothermal Awareness Month, and May 21, 2015, as Geothermal
Awareness Day. Specifically, this resolution:
a)Makes the following legislative findings:
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.
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.
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California currently has 2,565.5 megawatts (MW) of
installed electric generation capacity from geothermal
resources with an additional 4,000 megawatts of potential
for development.
Geothermal energy is a reliable base load 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 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.
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.
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.
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
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geothermal industry.
The Legislature 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.
EXISTING LAW:
1)Establishes the California Renewables Portfolio Standard (RPS)
program, which expresses the intent of the Legislature that
the amount of electricity generated per year from eligible
renewable energy resources be increased to an amount that
equals at least 33% of the total electricity sold to retail
customers in California per year by December 31, 2020.
(Public Utilities Code Section 399.11)
2)Defines a renewable electrical generation facility to mean a
facility that uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small
hydroelectric generation of 30 megawatts or less, digester
gas, municipal solid waste conversion, landfill gas, ocean
wave, ocean thermal, or tidal current, and any additions or
enhancements to the facility using that technology. (Public
Resources Code Section 25741)
3)Directs the State Air Resources Board to monitor and regulate
sources of emission of greenhouse gases that cause global
warming in order to reduce emission of greenhouse gases.
(Health and Safety Code Section 38510)
FISCAL EFFECT: Unknown. This resolution is keyed non-fiscal by
the Legislative Counsel.
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COMMENTS:
1)Author's Statement: "California possesses more geothermal
generating capacity than anywhere else in the world. Northern
California's Geysers, the largest geothermal field in the
world, produces roughly 60% of the energy demand for the North
Coast. It not only produces reliable energy for the region,
but it also partners with local municipalities in an
innovative program that injects 20 million gallons of treated
waste water daily into the geysers. This injection of
wastewater spurs electricity generation without contributing
to greenhouse gas emissions in the atmosphere, and also helps
to protect local waterways and streams by diverting the sewer
discharge that used to be added into surface waters.
Investing in geothermal energy production is an economically
and environmentally friendly way for California to fully
realize AB 32's ambitious goals."
2)Background: In 2006, the Legislature enacted AB 32 (Nunez,
Chapter 488, Statutes of 2006), which tasked the Air Resources
Board to adopt rules and regulations that would reduce
greenhouse gas emissions in the state to 1990 levels by 2020.
Geothermal energy is a form of renewable energy that is
generated by drilling into underground hot water reservoirs,
such as geysers and hot springs, releasing the hot water as
steam to the surface to produce electricity. Unlike solar and
wind energy, which are considered intermittent renewables
because they are dependent upon the weather to generate
energy, geothermal power plants are considered base load
facilities because they are able to operate 24 hours per day,
7 days per week, regardless of weather conditions.
3)California's Renewables Portfolio Standard: California's RPS
was established in 2002 under SB 1078 (Sher, Chapter 516,
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Statues of 2002), and was accelerated in 2006 under SB 107
(Simitian, Chapter 464, Statutes of 2006) to require that 20%
of electricity retail sales be served by renewable energy
resources by 2010. The RPS was again increased in 2011,
through SBX1-2 (Simitian, Chapter 1, Statues of 2011), to
require that 33% of electricity retail sales be served by
renewable energy resources by 2020.
In January 2015, Governor Brown proposed in his inaugural
address three ambitious goals to be accomplished within the
next 15 years. These goals are:
Increase from 33% to 50% our electricity derived
from renewable sources;
Reduce today's petroleum use in cars and trucks by
up to 50%; and
Double the efficiency of existing buildings and
make heating fuels cleaner.
1)California's Geothermal Industry: California currently has
2,782 MWs of installed physical capacity, which accounts for
4.4% of generation capacity and 25% of the renewable
electricity supplied to retail customers. California has more
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than 22 geothermal projects located across Imperial, Inyo,
Lake, Mono, and Sonoma counties. In addition, the world's
largest geothermal field, the Geysers, is located 70 miles
north of San Francisco and contains 22 power plants that draw
steam from more than 350 wells. An estimate by the United
States Geological Survey suggests that California' geothermal
resources could provide 800 to 4,600 MWs, with an additional
3,000 to 25,000 MWs of geothermal resources yet to be
discovered but likely to exist. The resolution specifies that
it is important to balance the needs of the state's
transmission grid system. The state currently has a balanced
transmission grid system and the resolution seeks to emphasize
geothermal energy in the system. The resolution also
highlights two proposed projects in Sonoma County which would
create up to 19 full time jobs. Geothermal may provide a
higher number of ongoing full time jobs compared to other
renewable sources, once they become operational.
2)Prior Legislation:
SCR 108 (Evans) 2014: Recognize the month of May 2014 as
Geothermal Awareness Month, and May 5, 2014 as Geothermal
Awareness Day. Chaptered by the Secretary of State -
Resolution Chapter 65, Statutes of 2014.
REGISTERED SUPPORT / OPPOSITION:
Support
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Calpine
Center for Climate Protection
Geothermal Energy Association
Geothermal Resources Council
Geysers Geothermal Association
International Brotherhood of Electrical Workers Local 569
Lake County Chamber of Commerce
Ormat Nevada Inc.
Opposition
None on file.
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Analysis Prepared by:Edmond Cheung / U. & C. / (916)
319-2083