BILL NUMBER: SBX2 87	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Costa

                        JUNE 18, 2001

   An act to amend, repeal, and add Section 25678 of the Public
Resources Code, relating to energy resources, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 87, as introduced, Costa.  Biomass resources.
   Existing law requires the State Energy Resources Conservation and
Development Commission to establish a grant program that provides a
$0.40 per gallon production incentive for liquid fuels fermented in
this state from biomass and biomass-derived resources produced in
this state.
   This bill, until January 1, 2005, would make the $0.40 per gallon
production incentive available for an unspecified amount of fuel
production and a $0.20 per gallon production incentive for the next
unspecified amount of fuel production, up to an unspecified total
amount.
   This bill would appropriate $25,000,000 from the General Fund to
the commission for the purpose of funding grants pursuant to the
bill.
   Vote:  2/3.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares that ethanol has
multiple benefits for the citizens of California, including
assisting California in becoming more self-sufficient for fuel,
improving air and water quality, turning domestic agricultural crops
and byproducts into useable fuel, reducing dependence on fossil
fuels, meeting federal mandates, creating in-state jobs, and
assisting in strengthening local economies.
   (b) The Legislature further finds and declares that California is
home to over nine million acres of irrigated cropland and over 150
million acres of forest and wildland resources that are available to
create indigenous resources for use in ethanol production.
  SEC. 2.  Section 25678 of the Public Resources Code is amended to
read:
   25678.   (a) (1)  The commission shall establish a grant
program  which   that  provides a forty
cent ($0.40) per gallon production incentive for liquid fuels
fermented in this state from biomass and biomass-derived resources
produced in this state.   Eligible  
   (2) The forty cent ($0.40) per gallon production incentive
described in paragraph (1) shall be available for the first ____
million gallons of liquid fuels produced per calendar year at any one
facility.  An additional twenty cent ($0.20) per gallon production
incentive shall be available for the next ____ million gallons
produced per year up to a total of ____ million gallons per year.
   (b) Eligible  liquid fuels include, but are not limited to,
ethanol, methanol, and vegetable oils.  Eligible biomass resources
include, but are not limited to, agricultural products and
byproducts, forestry products and byproducts, and industrial wastes.
 The  
   (c) The  commission shall adopt rules and regulations
necessary to implement the program.   Prior  
   (d) Prior  to determining an applicant eligible for
participation in the production incentive program, the commission
shall find, among other things, that the production techniques
employed will lead to a net increase in the amount of energy
available for consumption.  
  (e) This section shall remain in effect only until January 1, 2005,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2005, deletes or extends that date.

  SEC. 3.  Section 25678 is added to the Public Resources Code, to
read:
   25678.  (a) The commission shall establish a grant program that
provides a forty cent ($0.40) per gallon production incentive for
liquid fuels fermented in this state from biomass and biomass-derived
resources produced in this state.
   (b) Eligible liquid fuels include, but are not limited to,
ethanol, methanol, and vegetable oils.  Eligible biomass resources
include, but are not limited to, agricultural products and
byproducts, forestry products and byproducts, and industrial wastes.
   (c) The commission shall adopt rules and regulations necessary to
implement the program.
   (d) Prior to determining an applicant eligible for participation
in the production incentive program, the commission shall find, among
other things, that the production techniques employed will lead to a
net increase in the amount of energy available for consumption.
   (e) This section shall become operative January 1, 2005.
  SEC. 4.  The sum of twenty-five million dollars ($25,000,000) is
hereby appropriated from the General Fund to the State Energy
Resources Conservation and Development Commission for the purpose of
funding grants for the production of liquid fuels derived from
biomass and biomass-derived resources pursuant to Chapter 7.7
(commencing with Section 25678) of Division 15 of the Public
Resources Code.