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california legislation > SB 771

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|SENATE RULES COMMITTEE | SB 771|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524| |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING


Bill No: SB 771
Author: Kehoe (D), et al.
Amended: 4/13/11
Vote: 21


SENATE ENERGY, UTIL. & COMM. COMMITTEE : 10-0, 5/3/11
AYES: Padilla, Fuller, Corbett, De León, DeSaulnier,
Pavley, Rubio, Simitian, Strickland, Wright
NO VOTE RECORDED: Berryhill

SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8


SUBJECT : California Alternative Energy and Advanced
Transportation Financing Authority

SOURCE : Clean Power Campaign



DIGEST : This bill expands the definition of renewable
energy under the California Alternative Energy and Advanced
Transportation Financing Authority (CAEATFA) to include
landfill gas turbines, digester gas turbines, and
microturbines.


ANALYSIS :

Existing law

1. Requires the CAEATFA to provide bond financing for the
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SB 771
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2

development
and commercialization of competitive advanced
transportation
technologies and facilities utilizing alternative
methods and sources of
energy. It is also authorized to approve sales and
use tax exemption on
tangible personal property utilized for the design,
manufacture,
production, or assembly of advanced transportation
technologies or
alternative energy source products, components or
systems. The sales
and use tax exemption sunsets January 1, 2021.

2. Defines, only for purpose of the CAEATFA, renewable
energy to include
fuel sources such as wind, solar and geothermal but
also includes natural
gas turbines and fuel cells.

This bill

1.Categorizes as eligible under FIT "continuous clean
renewable energy resources" which are defined as those
technologies that utilize waste gases from landfills,
digesters, or wastewater treatment facilities, produce
electricity 8,000 hours a year, and have an emissions
profile equivalent or better than the waste gas emission
standards adopted by the State Air Resources Board that
take effect on January 1, 2013.

2.Increases the size of projects eligible for the Emerging
Renewables Program from 50 kW to 350 kW; exempts
"continuous clean renewable energy resources" from the
requirement that the resource offset the load on the
customer's side of the meter and defines those resources
as those that utilize waste gases from landfills,
digesters, or wastewater treatment facilities, produce
electricity 8,000 hours a year, and have an emissions
profile equivalent or better than the waste gas emission
standards adopted by the State Air Resources Board that
take effect on January 1, 2013.


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SB 771
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Comments

California Alternative Energy and Advanced Transportation
Financing Authority


CAEATFA was created in 1980 with an authorization of $200
million in revenue bonds to finance projects utilizing
alternative sources of energy, such as cogeneration, wind
and geothermal power. It was renamed in 1994 as currently
titled and its charge expanded to include the financing of
"advanced transportation" technologies.

During the energy crisis of 2001, its authority was again
expanded, this time to provide financial assistance to
public power entities, independent generators, and others
for new and renewable energy sources, and to develop clean
distributed generation.

CAEATFA's authority is broad but in practice it has not
been utilized until recently. The State Treasurer has
tried to reinvigorate the authority and has launched a
sales and use tax exemption program to stimulate green
manufacturing as authorized by SB 71 (Padilla, 2010).

Comments

According to the author's office, a problem exists with
renewable programs and opines that as new technologies
evolve the renewable programs are not keeping pace leaving
some technologies that serve renewable goals ineligible for
specified programs particularly those that the author
categorizes as "clean continuous renewable energy
technologies."

FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No

SUPPORT : (5/13/11)

Clean Power Campaign (Source)
Flex Energy, Inc.

Humboldt Waste Management Authority

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SB 771
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ARGUMENTS IN SUPPORT : The Clean Power Campaign states
that Senate Bill 771creates a new a new category of
"continuous clean renewable energy" to recognize the
benefits of technologies that provide baseload electricity
and maintain an emissions profile equivalent or better than
Air Resources Board 2013 standard. By creating this new
category and allowing for its inclusion in selected clean
technology programs managed by the state, SB 771 will serve
to achieve the state's effort to improve air quality,
accelerate the utilization of clean technologies and
promote economic growth by way of investment in the clean
technology sector.


RM:rm 5/13/11 Senate Floor Analyses

SUPPORT/OPPOSITION: SEE ABOVE

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