BILL NUMBER: SB 625	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Costa

                        FEBRUARY 22, 2001

   An act to add Chapter 7.6 (commencing with Section 25660) to
Division 15 of the Public Resources Code, relating to energy
resources, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 625, as introduced, Costa.  Agricultural waste:  energy.
   Existing law provides for grants by the Department of Food and
Agriculture to persons utilizing agricultural biomass to avoid
landfill use, prevent air pollution, and enhance environmental
quality.
   This bill would, additionally, create the Agricultural Waste to
Energy Financing Authority in the State Energy Resources Conservation
and Development Commission to assist in the development and
financing of agricultural waste to energy facilities, as specified.
The bill would require the authority to establish a process for the
sale of surplus electricity generated by the facilities and would
require utilities operating the electrical transmission grid to only
charge fees based on the costs of transmission of the electricity.
The bill would require approval for interconnection of an
agricultural waste to energy facility to the electrical transmission
grid to be made by the Independent System Operator, as specified, and
not by the utility responsible for transmission.  The bill would
create the Agricultural Waste to Energy Financing Account in the
General Fund.
   The bill would appropriate an unspecified amount from the General
Fund for allocation (1) to the State Energy Resources Conservation
and Development Commission to fund an existing grant program for
liquid fuels fermented from biomass and biomass derived resources,
(2) for no-interest loans pursuant to the bill, and (3) to the
existing grant fund for grants by the Department of Food and
Agriculture to persons utilizing agricultural biomass to avoid
landfill use, prevent air pollution, and enhance environmental
quality.
   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.  The Legislature finds and declares that renewable
energy has multiple benefits for the citizens of California,
including assisting California in becoming more self-sufficient for
energy generation, improving environmental challenges by turning
waste products into useable energy, reducing dependence on fossil
fuels, creating in-state jobs, and assisting in strengthening local
economies.
  SEC. 2.  The Legislature further finds and declares that California
is home to over 9 million acres of irrigated cropland and over 150
million acres of forest and wildlands that are available to create
indigineous resources for use as renewable energy.
  SEC. 3.  Chapter 7.6 (commencing with Section 25660) is added to
Division 15 of the Public Resources Code, to read:

      CHAPTER 7.6.  AGRICULTURAL WASTE TO ENERGY FINANCING AUTHORITY

   25660.  The Agricultural Waste to Energy Financing Authority is
hereby created within the State Energy Resources Conservation and
Development Commission.
   25661.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Account" means the Agricultural Waste to Energy Financing
Account created by subdivision (b) of Section 25662.
   (b) "Authority" means the Agricultural Waste to Energy Financing
Authority created by Section 25660.
   25662.  (a) The authority shall assist in the development and
financing of agricultural waste to energy facilities that result in a
net pollution reduction for air and water pollution or a net
increase in electricity production, including, but not limited to,
biomass to ethanol facilities, manure digesters, and biomass power
plants.
   (b) The Agricultural Waste to Energy Financing Account is hereby
created in the General Fund.  Moneys in the account shall be expended
by the authority, upon appropriation by the Legislature, to make
no-interest loans for the purposes of subdivision (a).  Loans shall
be repaid to the account at the rate of ____ percent of the avoided
costs of the electricity generated at each facility.
   (c) The authority shall make loan guarantees for projects meeting
the goals of this chapter.
   25663.  The authority shall establish a process for the sale of
surplus electricity generated by the facilities to utilities
operating the electrical transmission grid and those utilities shall
charge fees based only on the costs for transmission of the
electricity.
   25664.  Any approval for interconnection of an agricultural waste
to energy facility to the electrical transmission grid shall be made
by the Independent System Operator, as described in Chapter 2.3
(commencing with Section 330) of Part 1 of Division 1 of the Public
Utilities Code, and not by the utility responsible for the
transmission.
  SEC. 4.  The sum of ____ million dollars ($____) is hereby
appropriated from the General Fund for allocation as follows:
   (a) To the State Energy Resources Conservation and Development
Commission, the sum of ____ million dollars ($___) for the purpose of
funding the grant program that provides a production incentive for
liquid fuels fermented in this state from biomass and biomass-derived
resources pursuant to Section 25678 of the Public Resources Code.
Payments pursuant to this subdivision shall not exceed the amount of
the payment authorized by Section 25678 for 10 million gallons per
year for the first five years that the payments are made for
production at that facility.  No payment shall be made by the
commission pursuant to this subdivision for any production on or
after January 1, 2006, and any unencumbered portion of the allocation
made to the commission pursuant to this subdivision shall revert to
the General Fund on that date.
   (b) To the Agricultural Waste to Energy Financing Account in the
General Fund, the sum of ____ million dollars ($____) for the
following purposes:
   (1) ____ million dollars ($____) for no-interest loans pursuant to
subdivision (b) of Section 25662.
   (2) ____ million dollars ($____) for transfer to the Agricultural
Biomass Utilization Account in the Department of Food and Agriculture
Fund for use consistent with subdivisions (b) and (e) of Section
39762 of the Health and Safety Code.  Of the amount allocated
pursuant to this paragraph, ____ million dollars ($____) shall be
expended to fund a technology development and demonstration program
for collection, densification, transportation, and storage of
agricultural biomass used for food or feed products.  ____ million
dollars ($____) shall be expended for other technology development
efforts to support future ethanol markets, including, but not limited
to, oxydiesel, E-85 refueling infrastructure, and fuel cells.