Amended in Assembly August 19, 2016

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 BillNo. 1074

Introduced by Senator Hueso

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(Coauthor: Assembly Member Eduardo Garcia)

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February 16, 2016

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


SB 1074, as amended, Hueso. Energy: Federal Trust Fund: geothermal projects.

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.

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.

Existing law authorizes the Energy 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,begin delete forend deletebegin insert of the moneys appropriated to commission inend insert the 2016-17 fiscalbegin delete year, appropriate to the commission $13,000,000end deletebegin insert yearend insert from the moneys derived from the federal act in the Federal Trust Fund for the purposes specified in existing law for funds derived from the federalbegin delete act and, of those moneys, wouldend deletebegin insert act,end insert allocate $2,500,000 to the commission for the geothermal brine treatment projects that would be authorized by this bill. 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 specified in existing law 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:

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
P3    1the adoption of ordinances, regulations, and guidelines to
2implement those measures.

3(d) Collecting baseline data and conducting environmental

5(e) Preparation or revision of geothermal resource elements, or
6geothermal components of energy elements, for inclusion in the
7local general plan, zoning and other ordinances, and related
8planning and environmental documents.

9(f) Administrative costs incurred by the local jurisdiction that
10are attributable to the development or production of geothermal

12(g) Monitoring and inspecting geothermal facilities and related
13activities to assure compliance with applicable laws, regulations,
14and ordinances.

15(h) Identifying, researching, and implementing feasible measures
16that will mitigate the adverse impacts of that development or

18(i) Planning, constructing, providing, operating, and maintaining
19those public services and facilities that are necessitatedbegin delete byend deletebegin insert by,end insert and
20resultbegin delete fromend deletebegin insert from,end insert the development or production.

21(j) Undertaking projects demonstrating the technical and
22economic feasibility of geothermal direct heat and electrical
23generation applications.

24(k) Undertaking projects for the enhancement, restoration, or
25preservation of natural resources, including, but not limited to,
26water development, water quality improvement, fisheries
27enhancement, and park and recreation facilities and areas.

28(l) In furtherance of the state’s zero-emission vehicle and energy
29storage objectives, undertaking projects to recover lithium, metals,
30agricultural products, and other beneficial minerals from highly
31mineralized geothermal brines atbegin delete an existingend deletebegin insert aend insert geothermal facility
32begin insert in existence on January 1, 2017,end insert that is in a disadvantaged
33community and provides local employment opportunities.


SEC. 2.  

Section 25463 of the Public Resources Code is
35amended to read:



(a) Notwithstanding any other provision of this
37division, federal funds available to the commission pursuant to
38this chapter may be used by the commission to augment funding
39for any programs or measures authorized by this division unless
40otherwise prohibited by the American Recovery and Reinvestment
P4    1Act of 2009 (Public Law 111-5). The commission may administer
2any funds used to augment other programs using the procedures
3of the augmented program consistent with applicable federal law.

4(b) This section shall be liberally construed to maximize the
5commission’s ability to utilize and award federal funds
6expeditiously and in accordance with the American Recovery and
7Reinvestment Act of 2009 or federal acts related to the American
8Recovery and Reinvestment Act of 2009.

9(c) (1) begin deleteFor the 2016-17 fiscal year, the sum of thirteen million
10dollars ($13,000,000) is hereby end delete
begin insertOf the moneys end insertappropriated to the
11commissionbegin insert in the 2016-17 fiscal yearend insert from the moneys derived
12from the American Recovery and Reinvestment Act of 2009 in
13the Federal Trust Fund for purposes authorized by Sectionbegin delete 25461.
14Of these moneys,end delete
begin insert 25461,end insert the sum of two million five hundred
15thousand dollars ($2,500,000) is hereby allocated for purposes
16consistent with subdivision (l) of Section 3823. No later than
17February 1, 2017, the commission shall issue a competitive
18solicitation for projects pursuant to subdivision (l) of Section 3823
19to be funded from this allocation.

20(2) Notwithstanding Section 13340 of the Government Code,
21for the 2017-18 fiscal year and each fiscal year thereafter until all
22moneys in the Federal Trust Fund derived from the American
23Recovery and Reinvestment Act of 2009 have been encumbered
24or expended, the sum of two million five hundred thousand dollars
25($2,500,000) annually is hereby continuously appropriated to the
26commission for the purposes authorized by Section 25461.