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