BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           1086 (Alarcon)
          
          Hearing Date:  7/9/01           Amended: 5/30/01 and  
          proposed to
                                                                       
                                      be amended                 
          Consultant:  Lisa Matocq            Policy Vote: E, U & C  
          8-1                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY:   SB 1086, an urgency bill, requires the  
          California Energy Commission (CEC), to the extent that  
          funds are available or otherwise appropriated for this  
          purpose, to make grants or loans for projects that  
          demonstrate the viability of equipment that converts gas  
          from solid waste landfills into liquefied natural gas for  
          use as transportation fuel.   
           
                              Fiscal Impact (in thousands)
           
          Major Provisions                 2001-02           2002-03              
           2003-04               Fund  
          
          Grant/loan program                    --- Indeterminable costs ---    
                           General

          
          STAFF COMMENTS:  SUSPENSE FILE.  The CEC administers a $15  
          million grant program for landfill gas-to-electricity pilot  
          projects.  Last year, 23 projects were awarded grants.   
          This bill:  

           provides that the CEC shall develop guidelines, including  
            evaluation criteria, for administering the program, 
           specifies that up to 2 % of the amount appropriated may  
            be retained by CEC for administrative costs,
           contains a 65% match requirement,
           specifies that the program is subject to an existing  
            statute governing intellectual property rights.

          STAFF NOTES that the author intends to amend the bill to  
          delete the $15 million appropriation and make the  
          grant/loan program subject to funding for this purpose.  











          STAFF RECOMMENDS that the bill be amended on page 3, line  
          29, to strike "commission" to ensure that to the extent the  
          CEC contracts out for personnel to administer this program,  
          such costs are subject to the 2  % administrative costs  
          cap.