BILL NUMBER: SB 1086	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 11, 2001
	AMENDED IN SENATE  MAY 30, 2001
	AMENDED IN SENATE  MAY 2, 2001
	AMENDED IN SENATE  APRIL 19, 2001

INTRODUCED BY    Senator Alarcon   Senators
Alarcon and Romero 
    (Coauthors:  Assembly Members Alquist, Chavez, Diaz,
Firebaugh, and Pavley) 

                        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.
   This bill would  appropriate $15,000,000 from the General
Fund to the commission and would   , to the extent that
funds are available for this purpose,  require  the
  those  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   no 
.  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
  To the extent funds are available or otherwise
appropriated for the purposes of this section,  the State Energy
Resources Conservation and Development Commission  to be
  shall make   expended on grants or loans
  grants or loans from those funds  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   Section
25620.4  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.