BILL NUMBER: SB 1086	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 2, 2001
	AMENDED IN SENATE  APRIL 19, 2001

INTRODUCED BY   Senator Alarcon

                        FEBRUARY 23, 2001

   An act relating to air pollution,  and  making an
appropriation therefor  , and declaring the urgency thereof, to
take effect immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1086, as amended, Alarcon.  Air pollution:  liquified natural
gas: production.
   (1) Existing law requires the State Energy Resources Conservation
and Development Commission, in conjunction with the State Air
Resources Board, to carry out a program of technology development and
financial assistance to expand the use of methanol fuel as a means
of reducing air pollution, assuring the state's energy security, and
increasing the competitiveness of fuel markets.  
   This bill would require the commission to implement a grant
program, that would include matching fund criteria, to fund the
development of equipment necessary to produce or accelerate the
production of liquefied natural gas from solid waste landfills for
use as transportation fuel.  
   (2)  The bill would appropriate $15,000,000 from the
General Fund to the commission  for purposes of the bill
  and would require the commission to expend those funds
on projects that the commission determines are related to the
research, development, and demonstration of equipment necessary to
produce liquified natural gas from solid waste landfills for use as a
transportation fuel  .  
   (2) This bill would declare that it is to take effect immediately
as an urgency statute. 
   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 all of the
following:
   (a) Many of the state's air quality management districts have
adopted programs to reduce emissions from heavy-duty engines as a
means of achieving health-based air quality standards and to reduce
exposure to toxic air contaminants.
   (b) The use of alternative fuel such as natural gas offers an
immediate opportunity to reduce emissions from heavy-duty trucks.
   (c) The recent increase in natural gas prices, coupled with
increased demand from energy generators, present serious obstacles
for both public and private fleet operators that have been required
or encouraged to convert to natural gas.
   (d) There is a critical need to expand natural gas supplies both
for electrical energy generation and for use as a clean
transportation fuel.
   (e) California's solid waste landfills offer an immediate and
significant source of affordable methane that can be converted to
liquefied natural gas for use in heavy-duty vehicles.
   (f) New demand for methane-produced fuel will encourage
improvements in the recovery of landfill gas and may significantly
reduce greenhouse gas emissions.
   (g) Grants to fund a number of pilot projects will advance the
commercialization of landfill gas treatment equipment and accelerate
the production of liquefied natural gas from the state's solid waste
landfills.
  SEC. 2.  (a) The sum of fifteen million dollars ($15,000,000) is
hereby appropriated from the General Fund to the State Energy
Resources Conservation and Development Commission to be 
expended to develop equipment necessary to produce or accelerate the
production of liquefied natural gas from solid waste landfills for
use as a transportation fuel.  The commission shall adopt guidelines
governing the implementation of the grant program in conformance with
this section.
   (b) The grant program guidelines are not subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.  The guidelines
shall do all of the following:
   (1) Establish criteria for selecting pilot projects to receive
funding for purposes of this section.
   (2) Establish matching fund criteria to ensure that entities that
receive funds pursuant to this section match the amount of any grant
funds awarded to the entity.
   (3) Establish appropriate audit procedures to ensure that grant
funds are expended in a manner consistent with this section.
  expended on projects that the commission determines
are related to the research, development, and demonstration of
equipment needed to produce liquefied natural gas from solid waste
landfills for use as a transportation fuel.
   (b) The administrative and contract provisions of Sections 5 and 6
of Chapter 7 of the Statutes of the 2001 First Extraordinary Session
that are applicable to the commission are applicable to this act.
The commission shall administer the funds appropriated pursuant to
this act in accordance with those administrative and contract
provisions.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to meet the natural gas needs of the people in the state
during the current shortage of natural gas supplies, and in order to
limit further impacts of that shortage on the public health, safety,
and welfare, it is necessary that this act take effect immediately.