Amended in Assembly June 20, 2016

Amended in Senate June 1, 2016

Amended in Senate May 31, 2016

Amended in Senate March 28, 2016

Senate Bill No. 1074

Introduced by Senator Hueso

February 16, 2016

An act to amend begin delete Section end delete begin insert Sections 3823 and end insert 25463 of the Public Resources Code, relating to energy, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

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

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 insert

Existing law authorizes the begin delete State end delete Energy begin delete Resources Conservation and Development end delete 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 the 2016-17 fiscal year, appropriate to the commission $13,000,000 from the moneys derived from the federal act in the Federal Trust Fund for the begin delete above purposes. end delete begin insert 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 insert The bill would, for the 2017-18 fiscal year and each fiscal year thereafter, continuously appropriate $2,500,000 annually to the commission from the moneys derived from the federal act in the Federal Trust Fund for the above purposes begin insert specified in existing law end insert 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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 3823 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

3823.  

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

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

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

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

(d) Collecting baseline data and conducting environmental
monitoring.

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

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

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

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

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

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

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

begin insert

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

end insert

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

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

25463.  

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

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

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

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