BILL NUMBER: SB 1086 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 30, 2001
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, 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.
The
This bill would appropriate $15,000,000 from the General
Fund to the commission 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 funds to be expended
on grants or loans for projects that the commission determines
demonstrate the technological and economic viability of equipment
that treats gas collected from solid waste landfills and converts
that gas into liquified natural gas for use as a transportation fuel.
The bill would prohibit the amount of the grant or loan from
exceeding 35% of the total cost of the project. The bill would
require the commission to adopt new guidelines, or utilize existing
guidelines, to ensure the effective use and oversight of the
appropriated funds, as specified .
(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 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. expended on grants or loans for projects
that demonstrate, as determined by the commission, the technical and
economic viability of equipment that treats gas collected from solid
waste landfills and converts that gas into liquefied natural gas for
use as a transportation fuel. Grants or loans for these projects
shall not exceed 35 percent of the total cost of the project.
(b) The commission shall adopt new guidelines, or shall utilize
existing guidelines previously adopted by the commission for similar
grant programs, in order to ensure the effective use and oversight of
funds appropriated by this section. The guidelines shall include
all of the following elements:
(1) Cost-effective criteria for project evaluation and selection.
(2) Procedures to verify the availability of any required matching
funds.
(3) Auditing and tracking procedures to ensure funds are expended
in a manner consistent with this act.
(4) Limits on administrative costs of 21/2 percent of the amount
of funds expended. For the purposes of this paragraph,
"administrative costs" means commission personnel and overhead costs
associated with the management of the grant and loan program created
by this act.
(c) This program shall be subject to Chapter 7.4 (commencing with
Section 25645) of Division 15 of the Public Resources Code.
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.