BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 642
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 642 (Charles Calderon) - As Amended:  April 27, 2011 

          Policy Committee:                              Utilities and 
          Commerce     Vote:                            15-0
                        Natural Resources                     8-0

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

           SUMMARY  

          This bill explicitly states the authority of the State Lands 
          Commission (SLC) to enter into a lease for the development of 
          algae-producing energy and agricultural products.  The bill also 
          states that biomass includes algae for the purpose of receiving 
          funding from the Renewable Resources Trust Fund or the 
          California Alternative Energy and Advanced Transportation 
          Financing Authority.

           FISCAL EFFECT  

          Negligible costs, if any

           COMMENTS  

           1)Rationale.  The author contends this bill, by explicitly 
            stating the authority of SLC to lease public-trust land for 
            algae-production and by placing in statute algae's 
            qualification for state funding will help to attract algae 
            production to California.

           2)SLC Has Authority to Enter into Leases for Algae Production.   
            Under SLC's general leasing authority, it may enter into a 
            lease for algae-producing energy and agricultural products as 
            long the lease does not conflict with the public's right to 
            use California's public trust lands, the constitution, or 
            state laws.  

           3)Algae's Qualification as Biomass not in Statute.   The 
            California Energy Commission's Overall Program Guidebook 








                                                                  AB 642
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            describes administration of the commission's renewable energy 
            program, including funding decisions.  The guidebook includes 
            a definition of "biomass" that includes organic materials not 
            derived from fossil fuels, including algae.

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