BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1074|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 1074
Author: Hueso (D), et al.
Amended: 8/19/16
Vote: 21
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 29-9, 6/2/16
AYES: Allen, Beall, Block, Cannella, De León, Galgiani,
Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso,
Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell,
Monning, Nguyen, Pan, Pavley, Roth, Stone, Wieckowski, Wolk
NOES: Anderson, Bates, Berryhill, Fuller, Gaines, Huff,
Morrell, Nielsen, Vidak
NO VOTE RECORDED: Moorlach, Runner
ASSEMBLY FLOOR: 80-0, 8/29/16 - See last page for vote
SUBJECT: Energy: Federal Trust Fund: geothermal projects
SOURCE: Author
DIGEST: This bill allocates, in Fiscal Year 2016-17, $2.5
million of the funds appropriated to the California Energy
Commission (CEC) from the Federal Trust Fund (fund) to certain
projects that recover beneficial minerals from highly
mineralized geothermal brines. This bill also continuously
appropriates $2.5 million from the fund, beginning in Fiscal
Year 2017-18, until all funds are encumbered.
SB 1074
Page 2
Assembly Amendments (1) remove the $13 million appropriation to
the CEC from the fund; (2) add to the list of eligible
expenditures, projects to recover lithium, metals, agricultural
products, and other beneficial minerals from highly mineralized
geothermal brines at a geothermal facility in existence on
January 1, 2017, that is in a disadvantaged community, and
provide local employment opportunities; (3) appropriate $2.5
million of the funds appropriated to the CEC to the
abovementioned projects, and require the CEC to issue a
competitive solicitation for projects by February 1, 2017; and
(4) make technical, conforming changes.
ANALYSIS:
Existing law:
1)Authorizes specified federal funds available to the CEC to be
used to augment funding for any specified programs or measures
unless prohibited by the ARRA. (Public Resources Code Section
25463)
2)Establishes the Geothermal Resource Development Account to
promote the development of new or existing geothermal
resources and technologies. (Public Resources Code Section
3820 et seq.)
3)Requires revenues from the Geothermal Resource Development
Account, disbursed to specified counties of origin and grants
or specified loans made to local jurisdictions or private
entities to be expended by recipients 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
SB 1074
Page 3
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
SB 1074
Page 4
economic feasibility of geothermal direct heat and
electrical generation applications.
aa) 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. (Public Resources Code Section 3823)
This bill allocates $2.5 million, of the moneys appropriated to
the CEC from the fund in Fiscal Year 2016-17, and annually
thereafter, to be expended on specified projects, including
geothermal brine treatment projects. Specifically, this bill:
1)Authorizes projects to recover lithium, metals, agricultural
products, and other beneficial minerals from highly
mineralized geothermal brines at geothermal facility in
existence on January 1, 2017, that is in a disadvantaged
community and provides local employment opportunities to
receive specified funds.
2)Allocates $2.5 million of the moneys appropriated to the CEC
in Fiscal Year 2016-17 from the fund to be expended on the
above-mentioned projects.
3)Allocates $2.5 million annually to the CEC for specified
purposes, beginning in Fiscal Year 2017-18 until all moneys in
the fund have been encumbered or expended.
4)Requires the CEC to issue a competitive solicitation for
specified projects no later than February 1, 2017.
Background
American Recovery and Reinvestment Act Investments. On February
17, 2009, President Obama signed the American Recovery and
Reinvestment Act (ARRA), otherwise known as the Stimulus
SB 1074
Page 5
Package, to restart the economy. The package contains extensive
funding for science, engineering research and infrastructure,
and more limited funding for education, social sciences, and the
arts. States received discretionary funding through the ARRA for
a variety of programs, and certain programs received funding
through block grants.
Through 2013, the CEC administered $314 million in energy
efficiency and renewable energy pilot programs under ARRA. These
pilot programs influenced the administration of current and
ongoing programs, and budget proposals under other funding
sources, such as the Greenhouse Gas Reduction Fund. When ARRA
ended in 2013, more than $30 million of funds remained with
sub-recipients who administer the programs, mainly in revolving
loan funds. The CEC, as part of its evaluation of these
programs, determined that certain programs were under-performing
and is now proposing to use the funds for a different purpose.
Governor's Proposal. The CEC is requesting $8 million in federal
fund authority in the budget year, and $2.5 million through
2026-27, to implement both voluntary and mandatory programs to
increase energy efficiency in existing buildings. The proposal
also requests federal fund transfer authority to shift $5
million (ARRA funds) to the Department of General Services for
the Energy Efficiency State Property Revolving Fund loan
program.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
Appropriates $2.5 million annually (General Fund-fungible) from
the fund to the CEC until all funds are encumbered.
SUPPORT: (Verified 8/30/16)
None received
OPPOSITION: (Verified 8/30/16)
SB 1074
Page 6
None received
ASSEMBLY FLOOR: 80-0, 8/29/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,
Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,
Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
Prepared by:Narisha Bonakdar / APPR. / (916) 651-4101
8/30/16 20:22:29
**** END ****