Senate Concurrent Resolution No. 108

Introduced by Senators Evans and Hueso

(Coauthors: Senators DeSaulnier and Fuller)

(Coauthors: Assembly Members Chesbro, Dahle, Jones-Sawyer, V. Manuel Pérez, and Yamada)

April 8, 2014

Senate Concurrent Resolution No. 108—Relative to geothermal awareness.

LEGISLATIVE COUNSEL’S DIGEST

SCR 108, as introduced, Evans. Geothermal Month and Geothermal Day.

This measure would recognize the month of May 2014, as Geothermal Month and May 5, 2014, as Geothermal Day. The measure would urge the State Air Resources Board, the State Energy Resources Conservation and Development Commission, and the Public Utilities Commission to immediately take the necessary actions to ensure the continued viability of California’s existing renewable geothermal resources and promote the procurement of new geothermal generation.

Fiscal committee: yes.

WHEREAS, California contains the largest amount of
geothermal generating capacity in the United States due to its
location on the Pacific “Ring of Fire” and the tectonic plate
conjunctions; and

WHEREAS, There are 25 Known Geothermal Resource Areas
(KGRAs) located in California, 14 of which have temperatures of
300 degrees Fahrenheit or greater for commercial geothermal
production of electricity; and

WHEREAS, There are major geothermal electrical production
locations throughout the State of California in the Counties of
Sonoma, Lake, Imperial, Inyo, and Mono; and

WHEREAS, California currently has 2,565.5 megawatts of
installed electric generation capacity with an additional 4,000
megawatts of potential for development; and

WHEREAS, Geothermal energy is a reliable baseload renewable
energy source that has been commercially operating in California
since 1960 at the Geysers, the world’s most developed geothermal
resource area, which has been providing Californians with clean,
reliable, and affordable electricity for more than 50 years; and

WHEREAS, Geothermal energy produces electricity 24 hours
a day, seven days a week with a high availability record and is
important to balance the needs of the state’s transmission grid
system; and

WHEREAS, Geothermal energy is a clean renewable energy
resource. The operation of the Geysers helps avoid the emissions
of 2.4 million tons of carbon dioxide, which is equivalent to
greenhouse gas emissions from more than 432,000 cars being taken
off the road, that would otherwise be emitted by fossil fuel plants
to meet baseload energy needs; and

WHEREAS, In comparison to other existing renewable
technologies, geothermal energy has many unique benefits,
including consistent, predictable production, a relatively small
land footprint, and low-integration costs; and

WHEREAS, Imperial County’s Salton Sea Known Geothermal
Resource Area is considered to have a significant near-term growth
opportunity of over 2,000 megawatts of electric generation from
additional geothermal resource development and additional
geothermal resource development opportunities exist in the
Counties of Sonoma, Modoc, Mono, and Lake; and

WHEREAS, The geothermal industry is a major employer in
the local communities where projects are located, providing a
diverse range of full-time employment opportunities as well as
contractor jobs throughout all phases of development and operation;
and

WHEREAS, Fully developing Imperial County’s Salton Sea
Known Geothermal Resource Area could produce 5,214
construction jobs, and up to 1,093 long-term operating and
maintenance jobs, substantially improving the economy of one of
the most impoverished counties in the state, where over 22 percent
of the population is unemployed; and

WHEREAS, Construction of the two proposed projects in
Sonoma County is expected to require about 900,000 hours of
labor by 190 construction workers, as well as hundreds of millions
of dollars in materials, supplies, and services during construction.
This new construction would result in an estimated $12 million in
one-time sales tax revenue, $7 million in new annual property tax
revenues, and millions of dollars in additional royalties paid to
state, federal, and private leaseholders. Once operational, the new
plants could create up to 19 full-time jobs; and

WHEREAS, Geothermal power contributes to the tax revenue
in local communities, representing 10 percent of all property tax
revenue in Imperial County and serving as the largest property
taxpayers in the Counties of Lake and Sonoma; and

WHEREAS, Geothermal development, from exploration through
construction, spurs local economic growth through sales tax
revenues, materials and supplies purchase, and purchase of other
associated goods and services; and

WHEREAS, California has one of the most ambitious renewable
portfolio standards (RPS) in the country with a mandate to procure
33 percent of energy from renewable sources by 2020, and
geothermal energy is a major contributor to achieving this goal;
and

WHEREAS, California is on course to meet the near-term 2020
greenhouse gas emissions reduction target under the California
Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code),
but more emissions reductions from the use of clean energy like
geothermal and other technological innovations will be needed to
maintain and make further reductions in carbon emissions; and

WHEREAS, Geothermal energy is essential and complimentary
to California’s environmental and economic policies, yet new fully
permitted geothermal projects have failed to keep pace with the
procurement of other renewable resources; and

WHEREAS, According to the State Air Resources Board, the
State Energy Resources Conservation and Development
Commission, and the Public Utilities Commission, existing
geothermal generation production is expected to drop significantly
by 2020, a result of renewable procurement policies that have
failed to fully capture the benefits of geothermal generation and
the costs associated with other renewable technologies; and

WHEREAS, A diverse renewable energy portfolio better fits
with California’s energy demand profile and lowers costs; and

WHEREAS, The preservation of California’s existing
geothermal generation and the development of new geothermal
generation could facilitate the achievement of the state’s post-2020
energy and environmental goals; now, therefore, be it

Resolved by the Senate of the State of California, the Assembly
thereof concurring, That the Legislature recognizes the month of
May 2014 as Geothermal Month to raise awareness of the
significant contributions geothermal energy makes to California’s
Renewable Portfolio Standard and towards meeting the state’s
environmental goals to reduce greenhouse gas emissions; and be
it further

Resolved, That the Legislature recognizes May 5, 2014, as
Geothermal Day in California, and urges all citizens to show their
support on that day by learning more about geothermal energy in
California and public support events planned by the geothermal
industry; and be it further

Resolved, That the Legislature urges the State Air Resources
Board, the State Energy Resources Conservation and Development
Commission, and the Public Utilities Commission to immediately
take the necessary actions to ensure the continued viability of
California’s existing renewable geothermal resources and promote
the procurement of new geothermal generation; and be it further

Resolved, That the Secretary of the Senate transmit copies of
this resolution to the Governor, the members of the Public Utilities
Commission, the State Energy Resources Conservation and
Development Commission, the Independent System Operator, the
State Air Resources Board, and to the author for appropriate
distribution.