BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 771
Author: Kehoe (D)
Amended: 9/2/11
Vote: 21
SENATE ENERGY, UTILITIES & COMM. CMTE : 10-0, 05/03/11
AYES: Padilla, Fuller, Corbett, De Le�n, DeSaulnier,
Pavley, Rubio, Simitian, Strickland, Wright
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 38-0, 05/19/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson,
Evans, Fuller, Gaines, Hancock, Harman, Huff, Kehoe, La
Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod,
Padilla, Pavley, Price, Rubio, Runner, Simitian,
Steinberg, Strickland, Vargas, Walters, Wolk, Wright,
Wyland, Yee
NO VOTE RECORDED: Calderon, Hernandez
ASSEMBLY FLOOR : 77-0, 9/7/11 - See last page for vote
SUBJECT : California Alternative Energy and Advanced
Transportation
Financing Authority
SOURCE : Clean Power Campaign
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DIGEST : This bill specifies that landfill and digester
gas turbines, engines, and microturbines may be considered
renewable energy eligible for financial assistance under
the California Alternative Energy and Advanced
Transportation Financing Authority (CAEATFA) Act.
Assembly Amendments (1) expand the definition of "renewable
energy" to include energy generation based on thermal
energy systems such as natural gas turbines; landfill gas
turbines, engines, and microturbines; digester gas
turbines, engines, and microturbines, and fuel cells, (2)
clarify that landfill and digester gas turbines, engines
and microturbines are eligible for funding, and (3) make
other clarifying and technical changes.
ANALYSIS : Existing law:
1.Creates CAEATFA for the purpose of promoting the
development and utilization of alternative energy sources
and the development and commercialization of advanced
transportation technologies. CAEATFA consists of five
members: the Director of Finance, the chairperson on the
California Energy Commission, the president of the Public
Utilities Commission, the State Controller, and the State
Treasurer, who serves as the chairperson of CAEATFA.
2.Permits CAEATFA to provide bond financing to lend
assistance to a participating party to enter into loan
agreements to finance projects that use an alternative
energy source or advanced transportation technologies.
3.Permits CAEATFA to approve a sales and use tax exemption
on tangible personal property utilized for the design,
manufacture, production, or assembly of advanced
transportation technologies or alternative energy source
products, components or system. This sales and use tax
exemption will sunset on January 1, 2021.
4.Requires CAEATFA to establish a renewable energy program
to provide financial assistance to public power entities,
independent generators, utilities, or businesses
manufacturing components or systems, or both, to generate
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new and renewable energy sources, develop clean and
efficient distributed generation, and demonstrate the
economic feasibility of new technologies, such as solar,
photovoltaic, wind, and ultralow-emission equipment.
5.Defines "renewable energy" as either of the following:
A. A device or technology that conserves or produces
heat, processes heat, space heating, water heating,
steam, space cooling, refrigeration, mechanical
energy, electricity, or energy in any form convertible
to these uses, that does not expend or use
conventional energy fuels (e.g., oil, gasoline,
natural gas), and that uses biomass, solar thermal,
photovoltaic, wind, or geothermal electrical
generation technologies; or,
B. Ultralow-emission equipment for energy generation
based on thermal energy systems such as natural gas
turbines and fuel cells.
This bill specifies that landfill and digester gas
turbines, engines, and microturbines may be considered
renewable energy eligible for financial assistance under
the CAEATFA Act.
Comments
California Alternative Energy and Advanced Transportation
Financing Authority (CAEATFA). CAEATFA was created in 1980
with an authorization of $200 million in revenue bonds to
finance projects utilizing alternative sources of energy,
such as cogeneration, wind and geothermal power. It was
renamed in 1994 as currently titled and its charge expanded
to include the financing of "advanced transportation"
technologies.
During the energy crisis of 2001, its authority was again
expanded, this time to provide financial assistance to
public power entities, independent generators, and others
for new and renewable energy sources, and to develop clean
distributed generation.
CAEATFA's authority is broad but in practice it has not
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been utilized until recently. The State Treasurer has
tried to reinvigorate the authority and has launched a
sales and use tax exemption program to stimulate green
manufacturing as authorized by SB 71 (Padilla), Chapter 10,
Statutes of 2010.
According to the author's office, a problem exists with
renewable programs and opines that as new technologies
evolve the renewable programs are not keeping pace leaving
some technologies that serve renewable goals ineligible for
specified programs particularly those that the author
categorizes as "clean continuous renewable energy
technologies."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/1/11)
Clean Power Campaign (source)
State Treasurer Bill Lockyer
City of San Diego
Flex Energy, Inc.
Marin Sanitary Service
ARGUMENTS IN SUPPORT : The Clean Power Campaign states
that this bill a new a new category of "continuous clean
renewable energy" to recognize the benefits of technologies
that provide baseload electricity and maintain an emissions
profile equivalent or better than Air Resources Board 2013
standard. By creating this new category and allowing for
its inclusion in selected clean technology programs managed
by the state, this bill will serve to achieve the state's
effort to improve air quality, accelerate the utilization
of clean technologies and promote economic growth by way of
investment in the clean technology sector.
ASSEMBLY FLOOR : 77-0, 9/7/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Beth Gaines,
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Galgiani, Garrick, Gatto, Gordon, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Donnelly, Furutani, Gorell
RM:nl 9/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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