BILL NUMBER: AB 642 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 28, 2012
AMENDED IN SENATE JUNE 4, 2012
AMENDED IN SENATE JUNE 22, 2011
AMENDED IN ASSEMBLY APRIL 27, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Charles Calderon
FEBRUARY 16, 2011
An act to add Chapter 8.65 (commencing with Section 25752) to
Division 15 of the Public Resources Code, relating to renewable
energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 642, as amended, Charles Calderon. Renewable energy: biomass:
algae.
Existing law requires the State Energy Resources Conservation and
Development Commission to administer the Renewable Energy Resources
Program, which provides financial assistance for the development of
renewable electricity generation facilities, including facilities
that use biomass.
This bill would enact the Salton Sea Stabilization and
Agricultural Cultivation Act, which would authorize the Secretary of
the Natural Resources Agency to establish an Algae Production Program
in the Imperial Valley to meet high-priority economic and
environmental goals, expedite regulatory application and review
processes, and provide grants to facilitate research and the
commercial development of algae for fuels, foods, medicines, and
clean water within the state. The bill would further authorize the
secretary to provide grants to eligible research institutions and
commercial enterprises for research and demonstration projects
leading to the commercial development of algae. The bill would
require a commercial enterprise for a demonstration project, to be
eligible for a grant, to agree to a royalty or other revenue
arrangement. The bill would require royalties and revenues received
to be deposited into the Algae Production Program Fund, which is
created by this bill. The bill would require the secretary, in
consultation with the Secretary of Business, Transportation and
Housing, the Secretary of Food and Agriculture, the Chairman of the
State Air Resources Board, and the Governor's Tribal Advisor, if an
algae production program is established pursuant to the bill, to
publish a report, no later than May 1, 2013,
July 1, 2013, that enumerates the environmental and economic
benefits of the algae industry, and contains specified
recommendations. The bill would also require the secretary by
May 1, 2013, July 1, 2013, to
publish a rule establishing an initiate the rulemaking
process for the Algae Production Program and a process for the
application, review, and issuance of grants, and, no later than
July 1, 2013, July 1, 2014, to publish
a final rule to implement recommendations contained in the
above-described report.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 8.65 (commencing with Section 25752) is added
to Division 15 of the Public Resources Code, to read:
CHAPTER 8.65. SALTON SEA STABILIZATION AND AGRICULTURAL ALGAE
CULTIVATION
25752. This act shall be known, and may be cited, as the Salton
Sea Stabilization and Agricultural Algae Cultivation Act.
25752.1. The Legislature finds and declares all of the following:
(a) The Salton Sea is a critical environmental and economic
resource located in the Imperial and Coachella Valleys.
(b) The deteriorating condition of the Salton Sea endangers
important wildlife habitat and results in serious unhealthful fine
particulate air pollution.
(c) The State of California has previously obligated itself to
protect the long-term health of the Salton Sea.
(d) A multiagency task force previously estimated the cost of the
"preferred solution" for the Salton Sea to be more than nine billion
dollars ($9,000,000,000) in one-time costs, in addition to
significant ongoing operational costs.
(e) The development of agricultural algae cultivation on the
periphery of the Salton Sea is may be a
more cost-effective means by which to meet the state's obligation to
protect the Salton Sea.
(f) The State of California is uniquely and timely poised to
assume national leadership in full-scale production of algal biofuels
and parallel advancement in algal biofuel technology.
(g) Initiating the algae program will may
have the immediate benefit of reducing fine particulate air
pollution.
(h) Commercial development of algae has the potential for
significant value as a source for fuels, foods, medicines, and clean
water.
(i) The United States Navy has significant facilities in the
Imperial Valley and has expressed its interest in being a customer
for algae-derived energy products.
(j) The University of California, and, specifically, the
Scripps Institution of Oceanography and the San Diego Center for
Algal Biofuels at the University of California, San Diego,
Many of California's public and private colleges and
universities have engaged in much of the research
and development activities that are now leading to the commercial
deployment of agricultural algae production in other parts of the
country and the world.
(k) The designation of the Salton Sea Agricultural Algae
Cultivation District (AACD) could produce an affordable solution to
the serious Salton Sea environmental challenges.
(l) The designation of the AACD will
should encourage a potentially important new industry developed
in California to deploy on a commercial scale in California and
provide a significant source of future revenue for the State of
California in the form of royalties or other revenue sharing similar
to the state's off-shore oil revenue sharing funds.
25752.2. (a) The Secretary of the Natural Resources Agency may
establish an Algae Production Program in the Imperial Valley to meet
high-priority economic and environmental goals, expedite regulatory
application and review processes, and provide grants to facilitate
research and the commercial development of algae for fuels, foods,
medicines, and clean water within the state.
(b) The secretary may provide grants to eligible research
institutions and commercial enterprises for research and development
projects and demonstration projects intended to lead to the
commercial development of algae under subdivision (a). The
demonstration projects shall be sited within the
Agricultural Algae Cultivation District, as designated by the
secretary, at the Salton Sea and .
Demonstration projects by commercial enterprises shall do all
of the following , and the secretary shall give preference to
research and development projects by research institutions that would
do one or more of the following :
(1) Improve air quality by reducing fine particulates originating
in the dry sea bed.
(2) Improve water quality in the Salton Sea that will, in turn,
stabilize marine habitats for fish and migratory birds.
(3) Reduce use of potable water for crop
farming.
(4) Present new options for the state's restoration plan of the
Salton Sea.
(5) Demonstrate the scalability of agricultural algae cultivation
and production and the revenue potential to the state.
(c) The secretary, in consultation with the Secretary of Business,
Transportation and Housing, the Secretary of Food and Agriculture,
the Chairman Chairperson of the State
Air Resources Board, and the Governor's Tribal Advisor, if an algae
production program is established pursuant to this chapter, shall
publish a report no later than May 1, 2013,
July 1, 2013, that enumerates the environmental and economic
benefits of the algae industry and provides recommendations on all of
the following:
(1) The creation of algae production zones.
(2) The expedited application and review of state and local
regulatory and permitting requirements for research and development
facilities and commercial scale-up facilities, including requirements
imposed by the California Environmental Quality Act (Division 13
(commencing with Section 21000)).
(3) The use of state lands for facilities.
(4) Access to infrastructure including roads, electricity, water
delivery, and carbon dioxide.
(5) Use of water and waste products.
(6) Tax incentives.
(7) Loan guarantees.
(8) State procurement of commercial algae products.
(9) Insurance underwriting.
(10) Waivers of liability for seismic, flooding, and other natural
events.
(11) Revenue and royalty sharing for commercial production.
(12) The sufficiency of the secretary's authorities to implement
an algae production program and how to address any deficiencies of
those authorities.
(13) How to ensure consistency with a Salton Sea restoration
program authorized by the Legislature.
(d) If an algae production program is established pursuant to this
chapter, the secretary shall publish a rule establishing an
initiate the rulemaking process for the Algae
Production Program and a process for the application, review, and
issuance of grants under subdivision (b) no later than May
1, 2013 July 1, 2013 . The secretary shall
publish a final rule to implement recommendations of the report
described under subdivision (c) no later than July 1, 2013
July 1, 2014 .
(e) An organization A commercial
enterprise, to be eligible for a grant under
subdivision (b) shall for a demonstration
project, shall meet all of the following requirements:
(1) Be incorporated as a business authorized to do business in the
state.
(2) Provide matching funds for the proposed project.
(3) Certify use of state funds solely for the proposed project
sited with the state.
(4) Demonstrate the proposed project will have substantial
environmental and economic benefits to the state.
(5) Identify a customer or customers for the product to be
developed.
(6) Agree to a royalty or other revenue sharing
arrangement ensuring the state's ongoing financial participation in
commercially viable operations in the Agricultural Algae Cultivation
District.
(f) A research institution, to be eligible for a grant under
subdivision (b) for a research and development project, shall meet
all of the following requirements:
(1) Be a nonprofit or educational research institution or
consortia.
(2) Provide matching funds for the proposed project.
(3) Certify use of state funds solely for the proposed project
sited with the state.
(4) Demonstrate how the proposed project will help lead to the
commercial development of algae for fuels, food, medicines, and clean
water within the state.
(g) Royalties and revenues collected by the state pursuant to
paragraph (6) of subdivision (e) shall be deposited in the Algae
Production Program Fund, which is hereby created. Moneys deposited in
the fund shall be available, upon appropriation by the Legislature,
for programs and projects that will aid in restoration of the Salton
Sea.