Amended in Senate June 1, 2016

Amended in Senate May 31, 2016

Amended in Senate March 28, 2016

Senate BillNo. 1074

Introduced by Senator Hueso

February 16, 2016

An act to amendbegin delete Sections 3823 andend deletebegin insert Sectionend insert 25463 of the Public Resources Code, relating to energy, and making an appropriation therefor.


SB 1074, as amended, Hueso. Energy: Federal Trustbegin delete Fund: geothermal projects.end deletebegin insert Fund.end insert

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Existing law requires that all revenues received by the state pursuant to specified federal laws be deposited in the Geothermal Resources Development Account and continuously appropriated as specified. Existing law requires some of those revenues to be disbursed to counties in which the federal government has leased land for geothermal development and another portion of those revenues to be available for distribution by the State Energy Resources Conservation and Development Commission (Energy Commission) as grants or loans made to local jurisdictions or private entities. Existing law specifies purposes primarily relating to geothermal energy development and mitigation for which recipients may expend these moneys.

end delete
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This bill would additionally authorize those recipients to expend those revenues to undertake projects to recover lithium, metals, agricultural products, and other beneficial minerals from highly mineralized geothermal brines at existing geothermal facilities that are in disadvantaged communities and provide local employment opportunities.

end delete

Existing law authorizes thebegin insert Stateend insert Energybegin insert Resources Conservation and Developmentend insert Commission to administer funds appropriated by the federal American Recovery and Reinvestment Act of 2009 (federal act) for the federal Energy Efficiency and Conservation Block Grant Program to award contracts, grants, and loans for energy-related projects.

This bill would, for thebegin delete 2016- 17end deletebegin insert 2016-17end insert fiscal year, appropriate to the commission $13,000,000 from the moneys derived from the federal act in the Federal Trust Fund for thebegin delete purposes specified in existing law for funds derived from the federal act and, of those moneys, would allocate $2,500,000 to the commission for the geothermal brine treatment projects that would be authorized by this bill.end deletebegin insert above purposes.end insert The bill would, for the 2017-18 fiscal year and each fiscal year thereafter, continuously appropriate $2,500,000 annually to thebegin delete commission,end deletebegin insert commissionend insert from the moneys derived from the federal act in the Federal Trust Fund for the above purposesbegin delete specified in existing lawend delete until all of those moneys are encumbered or expended.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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P2    1


Section 3823 of the Public Resources Code is
2amended to read:



Revenues disbursed to counties of origin pursuant to
4Section 3821 and grants or loans made to local jurisdictions or
5private entities pursuant to Section 3822 shall be expended by the
6recipient for the following purposes:

7(a) Undertaking research and development projects relating to
8geothermal resource assessment and exploration, and direct-use
9and electric generation technology.

10(b) Local and regional planning and policy development and
11implementation necessary for compliance with programs required
12by local, state, or federal laws and regulations.

13(c) Identification of feasible measures that will mitigate the
14 adverse impacts of the development of geothermal resources and
15the adoption of ordinances, regulations, and guidelines to
16implement those measures.

P3    1(d) Collecting baseline data and conducting environmental

3(e) Preparation or revision of geothermal resource elements, or
4geothermal components of energy elements, for inclusion in the
5local general plan, zoning and other ordinances, and related
6planning and environmental documents.

7(f) Administrative costs incurred by the local jurisdiction that
8are attributable to the development or production of geothermal

10(g) Monitoring and inspecting geothermal facilities and related
11activities to assure compliance with applicable laws, regulations,
12and ordinances.

13(h) Identifying, researching, and implementing feasible measures
14that will mitigate the adverse impacts of that development or

16(i) Planning, constructing, providing, operating, and maintaining
17those public services and facilities that are necessitated by and
18result from the development or production.

19(j) Undertaking projects demonstrating the technical and
20economic feasibility of geothermal direct heat and electrical
21generation applications.

22(k) Undertaking projects for the enhancement, restoration, or
23preservation of natural resources, including, but not limited to,
24water development, water quality improvement, fisheries
25enhancement, and park and recreation facilities and areas.

26(l) In furtherance of the state’s zero-emission vehicle and energy
27storage objectives, undertaking projects to recover lithium, metals,
28agricultural products, and other beneficial minerals from highly
29mineralized geothermal brines at an existing geothermal facility
30that is in a disadvantaged community and provides local
31employment opportunities.

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begin deleteSEC. 2.end delete
begin insertSECTION 1.end insert  

Section 25463 of the Public Resources Code is
34amended to read:



(a) Notwithstanding any other provision of this
36division, federal funds available to the commission pursuant to
37this chapter may be used by the commission to augment funding
38for any programs or measures authorized by this division unless
39otherwise prohibited by the American Recovery and Reinvestment
40Act of 2009 (Public Law 111-5). The commission may administer
P4    1any funds used to augment other programs using the procedures
2of the augmented program consistent with applicable federal law.

3(b) This section shall be liberally construed to maximize the
4commission’s ability to utilize and award federal funds
5expeditiously and in accordance with the American Recovery and
6Reinvestment Act of 2009 or federal acts related to the American
7Recovery and Reinvestment Act of 2009.

8(c) (1) For the 2016-17 fiscal year, the sum of thirteen million
9dollars ($13,000,000) is hereby appropriated to the commission
10from the moneys derived from the American Recovery and
11Reinvestment Act of 2009 in the Federal Trust Fund for purposes
12authorized by Section 25461. begin delete Of these moneys, the sum of two
13million five hundred thousand dollars ($2,500,000) is hereby
14allocated for purposes consistent with subdivision (l) of Section
153823. No later than February 1, 2017, the commission shall issue
16a competitive solicitation for projects pursuant to subdivision (l)
17of Section 3823 to be funded from this allocation.end delete

18(2) Notwithstanding Section 13340 of the Government Code,
19for the 2017-18 fiscal year and each fiscal year thereafter until all
20moneys in the Federal Trust Fund derived from the American
21Recovery and Reinvestment Act of 2009 have been encumbered
22or expended, the sum of two million five hundred thousand dollars
23($2,500,000) annually is hereby continuously appropriated to the
24commission for the purposes authorized by Section 25461.