BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 306 (Gatto)
          
          Hearing Date: 08/15/2011        Amended: 08/15/2011
          Consultant: Brendan McCarthy    Policy Vote: T&H 9-0, EU&C 10-0
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 306 requires the California Energy Commission 
          and CalTrans to conduct research regarding the use of a specific 
          technology to capture energy from the pressure that cars and 
          trucks put on highways and roads.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Energy Commission initial         $300 - $500           General 
          *
             research

          CalTrans initial research         $600 - $800           Special 
          **

          Conducting pilot projects         Costs likely in the 
          millionsVarious ***
          
          * Renewable Resources Trust Fund.
          ** State Highway Account.
          *** Renewable Resources Trust Fund and/or State Highway Account.
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Under current law, the California Energy Commission oversees an 
          energy-related research and development program. The purpose of 
          the program is to provide funding for research, development, and 
          demonstration projects that will benefit California electricity 
          ratepayers and that are not likely to be funded by the private 
          sector. The research program has an annual budget of about $70 
          million. In addition, the Energy Commission operates a program 
          to support the development of renewable energy sources, such as 








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          rooftop solar systems and other small renewable energy projects. 
          Both of these programs are supported by the Public Goods Charge, 
          a tax paid by electricity ratepayers in the state. The Public 
          Goods Charge will sunset at the end of 2011. At the end of the 
          2011-12 fiscal year, the Energy Commission is projected to have 
          about $10 million for additional research projects and about $2 
          million for additional renewable energy projects. The Energy 
          Commission also operates a research and development program 
          relating to energy use in the transportation sector. That 
          program has an annual budget of about $100 million per year.

          AB 306 requires the Energy Commission to conduct a research 
          project to evaluate the potential to use a specific type of 
          technology (piezoelectric transducers) to generate electricity 
          from the pressure that cars and trucks put on roads and 
          highways. Theoretically, a piezoelectric system could be 
          embedded in the pavement of a highway, and the subsequent 
          pressure put on the system by cars and trucks could generate 
          electricity which could be captured and used to reduce other 
          sources of electricity. The bill requires the Energy Commission 
          to conduct initial research on the potential uses of this 
          technology and then to conduct one or more pilot projects to 
          test the technology on California roads or highways. If the 
          pilot project is to be conducted on a state highway, the 
          Department of Transportation (CalTrans) is required to 
          participate.

          In order to conduct initial research on this technology, the 
          Energy Commission anticipates that it will incur costs between 
          $300,000 and $500,000. If CalTrans is involved in the pilot 
          project, the it indicates that it will incur costs between 
          $600,000 and $800,000 for initial research on potential effects 
          on of the technology on pavement durability. If the results of 
          that research are promising, the Energy Commission and possibly 
          CalTrans will then incur costs to develop and conduct pilot 
          projects. The costs to develop a pilot project are unknown. 
          CalTrans indicates that if the pilot were to be conducted on one 
          of its test roads, the cost would be over $1 million. On the 
          other hand, if the pilot is conducted on a working road or 
          highway, the costs could be considerably higher. 

          Staff notes the following: 1) In order to develop a pilot 
          project that provides useful information under real world 
          conditions, it may be necessary to conduct the pilot project on 








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          a working road or highway. In that case, CalTrans would have to 
          tear up one or more lanes of a potentially heavily used highway, 
          which is likely to create significant costs and potential 
          traffic congestion issues. 2) The fund source identified in the 
          bill has a very small projected fund balance at the end of the 
          budget year. 3) This bill bypasses the existing process for 
          identifying energy-related research projects and instead puts a 
          specific technology at the top of the list for funding.