BILL ANALYSIS
AB 1362
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1362 (Levine)
As Amended August 28, 2006
2/3 vote. Urgency
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|ASSEMBLY: | |(June 1, 2005) |SENATE: | |(>) |
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(vote not relevant)
Original Committee Reference: U. & C.
SUMMARY : Extends the liquidation period for funds that were
originally appropriated to provide grants to biogas electricity
generation projects.
The Senate amendments delete the Assembly version of this bill, and
instead insert language that would extend the liquidation period
for funds that were originally appropriated during the energy
crisis in 2000-01 to encourage distributed generation and decrease
reliance on spot energy markets.
EXISTING LAW :
1)Provides, under SBX1 5 (Sher) Chapter 7, Statutes of 2001, $10
million to the California Energy Commission (CEC) to provide
grants to encourage the development of manure methane power
production projects on California dairies.
2)Requires all unexpended funds for manure methane power production
projects to revert to the General Fund (GF) on December 31, 2006.
AS PASSED BY THE ASSEMBLY , this bill accelerated the California
Renewables Portfolio Standard (RPS) to require retail sellers of
electricity to procure at least 20% of their retail sales from
renewable power by 2010 instead of 2017.
FISCAL EFFECT : Unknown
COMMENTS : This bill was substantially amended in the Senate to
extend the liquidation period for biogas electricity generation
projects.
In 2001, California's wholesale energy markets were very unstable,
AB 1362
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costs were high and supply was precarious. To reduce consumption
of energy and assist in reducing the costs associated with energy
demand, the Legislature appropriated $709 million from the GF for
various energy efficiency and self-generation projects. Of that
amount, $10 million was provided to encourage the development of
manure methane power projects. An objective of the program was to
develop commercially proven biogas electricity systems that can
help California dairies offset the purchase of electricity.
CEC must expend the remaining funds by December 31, 2006, or the
funds will revert to the GF. CEC does not believe it will be able
to expend the full amount because the remaining biogas generation
facilities are subsidized at a per-kilowatt basis and they do not
generate enough electricity to fully deplete the fund by then.
Analysis Prepared by : Edward Randolph / U.&C. / (916)
319-2083FN: 0017507