BILL NUMBER: SB 1794	CHAPTERED  09/30/00

	CHAPTER   1019
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN SENATE   MAY 30, 2000
	AMENDED IN SENATE   MAY 3, 2000

INTRODUCED BY   Senator Ortiz
   (Principal coauthor: Assembly Member Steinberg)

                        FEBRUARY 23, 2000

   An act to amend Sections 39751 and 39752 of the Health and Safety
Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1794, Ortiz.  Rice straw burning.
   Existing law requires the State Air Resources Board to provide
cost-sharing grants for the development of demonstration projects for
new rice straw technologies.  Existing law establishes the Rice
Straw Demonstration Project Fund for the purpose of providing the
grants.  Existing law provides for the grants to be authorized and
allocated during the 1997-98 and 1998-99 fiscal years and requires
the projects to demonstrate technical and economic feasibility.
   This bill would change the name of the fund to the Rice Straw
Demonstration Project Grant Fund and would provide for the grants to
be authorized and allocated during the 2000-01, 2001-02, and 2002-03
fiscal years.  The bill would additionally require the projects to
demonstrate cost-effectiveness and mitigation of environmental
impacts.  The bill would not become operative until moneys are
deposited in the fund by the Legislature or any other entity.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 39751 of the Health and Safety Code is amended
to read:
   39751.  The Rice Straw Demonstration Project Grant Fund is hereby
created in the State Treasury.  The fund shall be administered by the
state board for the purpose of developing demonstration projects for
new rice straw technologies in the rice straw growing regions of
California.
  SEC. 2.  Section 39752 of the Health and Safety Code is amended to
read:
   39752.  The state board shall provide cost-sharing grants for the
development of demonstration projects for new rice straw technologies
according to criteria developed by the state board, in consultation
with the University of California, the Trade and Commerce Agency, and
the Department of Food and Agriculture, and adopted at a noticed
public hearing held by the state board.  The criteria shall include,
but shall not be limited to, all of the following:
   (a) Proposed projects shall use a technology that could use
significant volumes of rice straw annually if it is commercialized,
based upon various factors, including potential markets and viability
of the technology in meeting market demands.
   (b) The state board shall provide a grant of not more than 50
percent of the cost for each demonstration project.
   (c) Public and private support shall be demonstrated for proposed
projects, including local community support from the rice growing
community where the project would be located.
   (d) The grants shall be authorized and allocated during the
2000-01, 2001-02, and 2002-03 fiscal years.  Grants may be expended,
under the grant agreement, during a period not to exceed three years
from the date that the grant is awarded.
   (e) Preference shall be given to projects located within the rice
growing regions of the Sacramento Valley and which may be replicated
throughout the region.
   (f) Projects should demonstrate  all of the following:
   (1) Technical and economic feasibility.
   (2) The capability to become profitable within five years.
   (3) Cost-effectiveness.
   (4) The extent to which the program mitigates or avoids adverse
environmental impacts.
   (g) This section shall not become operative until moneys are
appropriated for deposit in the Rice Straw Demonstration Project
Grant Fund, created pursuant to Section 39751, by the Legislature, or
until moneys are transferred to that fund by any other entity.