BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 306
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          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 306 (Gatto) - As Amended:  April 27, 2011 

          Policy Committee:                              Natural 
          ResourcesVote:6-1
                        Transportation                        11-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the California Energy Commission (CEC) to 
          conduct research on generating electricity from roadway weight 
          and friction using piezoelectric technology.  The bill requires 
          CEC, as part of this research, to collaborate with the 
          Department of Transportation (Caltrans) to establish a pilot 
          project or projects that employ piezoelectric technology and 
          authorizes use of Public Interest Energy Research (PIER) monies, 
          upon appropriation, to fund the research, if CEC finds, based on 
          initial research, that a pilot project is appropriate.    

           FISCAL EFFECT  

          1)Minor, absorbable costs to CEC to conduct initial research. 
            (Public Interest Research, Development, and Demonstration Fund 
            (PIRDDF).)

          2)Potential significant costs to CEC, likely in the hundreds of 
            thousands to millions of dollars, to conduct additional 
            research, which would include a pilot project.  (PIRDDF.)

          3)Potential costs to Caltrans, possibly in the millions of 
            dollars, to install generation equipment, which, according to 
            Caltrans, would need to occur on the state's busiest 
            commercial corridors, and to remove it should the equipment 
            prove damaging to the roadway or to vehicles. (PIRDFF or State 
            Highway Account.)

           COMMENTS  









                                                                  AB 306
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           1)Rationale.    The author notes that California is exploring a 
            variety of alternative energy resources to help it meet a 
            number of policy goals, including greenhouse gas (GHG) 
            reduction.   The author argues it appropriate to require CEC 
            to undertake research, which includes a pilot project, to 
            explore the electricity generation possibilities of 
            piezoelectric technology.  

          2)Background.    
                
              a)   Piezoelectricity  is the electric charge that accumulates 
               in certain materials, such as crystals and ceramics, in 
               response to applied mechanical strain, such as the weight 
               of passing motor vehicles.  As noted by the Natural 
               Resources Committee analysis of the bill, the piezoelectric 
               technology installed under the surface of roads as 
               described in this bill is patented by Israel-based 
               Innowattech.  
                 
               b)   Public Interest Energy Research.   When California 
               partially deregulated its energy market in 1996, many 
               assumed that the state's for-profit investor-owned 
               utilities (IOUs) would cut research efforts to reduce 
               costs. To ensure continuation of energy research that 
               benefitted the public, statute directed the IOUs to levy a 
               public goods charge on electricity bills, the proceeds of 
               which funds CEC's PIER program.  Through PIER, CEC awards 
               competitive grants for research to develop, and help bring 
               to market, energy technologies that benefit the 
               environment, provide greater system reliability, lower 
               system costs, and provide other tangible benefits to 
               California electric utility customers. Each year, the PIER 
               program receives no less than $62.5 million in public goods 
               surcharge monies from the ratepayers of the state's 
               electricity IOUs.  The public goods charge is set to expire 
               in 2012.
           
           3)Support.   This bill is supported by the State Building and 
            Construction Trades Council of California, Sierra Club 
            California and other organizations and individuals supporting 
            research and use of alternative energy supplies.

           4)The policy committees received no formal opposition to this 
            bill.  









                                                                  AB 306
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           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081