BILL ANALYSIS �
AB 642
Page 1
ASSEMBLY THIRD READING
AB 642 (Charles Calderon)
As Amended April 27, 2011
Majority vote
NATURAL RESOURCES 8-0 UTILITIES & COMMERCE 15-0
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|Ayes:|Chesbro, Knight, |Ayes:|Bradford, Fletcher, |
| |Brownley, Dickinson, | |Buchanan, |
| |Grove, Halderman, | |Fong, Fuentes, Furutani, |
| |Monning, Skinner | |Achadjian, Roger |
| | | |Hern�ndez, Huffman, |
| | | |Knight, Ma, Nestande, |
| | | |Skinner, Swanson, Valadao |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Harkey, | | |
| |Blumenfield, Bradford, | | |
| |Charles Calderon, Campos, | | |
| |Davis, Donnelly, Gatto, | | |
| |Hall, Hill, Lara, | | |
| |Mitchell, Nielsen, Smyth, | | |
| |Solorio, Wagner | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Specifies that the State Lands Commission (SLC) may
enter into a lease for the development of algae-producing energy
and agricultural products and that biomass includes algae for
the purpose of receiving funding from the Renewable Resources
Trust Fund (Fund) or the California Alternative Energy and
Advanced Transportation Financing Authority (Authority).
EXISTING LAW :
1)Provides that SLC has exclusive jurisdiction and leasing
authority over all public trust lands owned by the state.
Public trust lands generally consist of tide and submerged
lands and beds of navigable channels, streams, rivers, creeks,
AB 642
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lakes, bays, and inlets.
2)Protects the public's right to use California's public trust
lands for commerce, navigation, fishing, boating, natural
habitat protection, and other water oriented activities.
3)Requires the California Energy Commission (CEC) to optimize
public investment and ensure that the most cost-effective and
efficient investments in renewable energy resources are
vigorously pursued.
4)Establishes the Fund, which is administered by CEC and funded
by the renewable energy public goods charge. A portion of the
Fund is to be used for programs that are designed to achieve
fully competitive and self-sustaining existing in-state
renewable electricity generation facilities (e.g., facilities
that use biomass energy).
5)Establishes the Authority, which provides bond financing for
facilities that use alternative energy sources (e.g., biomass
energy).
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible costs, if any.
COMMENTS : Algae are attracting attention as a renewable energy
source because the strains can potentially produce 10 or more
times more fuel per acre than the corn used to make ethanol or
the soybeans used to make biodiesel. Unlike row crops, algae
growth is not dependent on a particular season. Moreover, algae
can grow in seawater, but can also thrive in desert ponds, using
high-saline water from aquifers that cannot otherwise be used.
Many species of algae can even grow in wastewater from treatment
plants and water that contains nitrates, phosphates, and other
contaminants. Algae are also a consumer of carbon dioxide.
Particular focus has been placed on the use of algae for jet
fuel. At least one major airplane company has stated that
commercial airlines may derive 1% of their fuel by 2015 from
biofuels made of plants including algae. The Navy is currently
testing both ships and aircraft on algae-based fuels.
The need for and effect of this bill is unclear. Under existing
law, SLC has broad authority to enter into leases. This would
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include algae production, although such a lease has never been
proposed. This bill's SLC lease provisions are consistent with
current law and may be considered a clarification of SLC's
authority with respect to algae, but do not appear to make any
substantive change to SLC's authority.
Under existing law governing the Fund and Authority, "biomass"
is an eligible renewable energy resource for funding purposes.
Biomass is not specifically defined to include or exclude algae,
and it seems to go without saying that algae are biomass. There
is no known evidence that the question has ever come up at the
CEC or the Authority. The effect of clarifying that "algae" are
biomass is unclear.
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN: 0000816