41606
. (a) (1) It is the intent of the Legislature to reduce air
pollution from open field burning in the state and to improve air
quality and protect the public health through new incentives for
biomass facilities to increase their use of agricultural waste that
would otherwise be burned in open fields in the state.
(2) It is the further intent of the Legislature that the initial
incentives paid pursuant to this section provide an effective
incentive for the use of qualified agricultural biomass purchased
from July 1, 2003, through December 31, 2003, inclusive, in order to
maximize air quality benefits during the 2003-04 fiscal year.
(b) For purposes of this section:
(1) "Qualified agricultural biomass" means agricultural residues
that are purchased after July 1, 2003, that historically have been
open-field burned in the jurisdiction of the air district from which
the agricultural residues are derived, as determined by the air
district, excluding urban and forest wood products, that include
either of the following:
(A) Field and seed crop residues, including, but not limited to,
straws from rice and wheat.
(B) Fruit and nut crop residues, including, but not limited to,
orchard and vineyard pruning and removals.
(2) "Facility" means any facility located in California that meets
all of the following criteria:
(A) As of July 1, 2003, converted and continues to convert
qualified agricultural biomass to energy.
(B) Is permitted with best available control technology to reduce
emissions, has emissions control equipment in good working order, and
is in compliance with its operating permit, as determined by the air
pollution control district or air quality management district in
which the facility operates.
(C) Demonstrates a significant net increase in utilization of
qualified agricultural biomass as compared to usage without grant
moneys pursuant to this section. A "significant net increase" means
an increase of at least 10 percent in purchases of qualified
agricultural biomass above the average annual tonnage purchased by
the facility in the previous five years of operation prior to the
implementation of the Agricultural Biomass-to-Energy Incentive Grant
Program pursuant to former Part 3 (commencing with Section 1101) of
Division 1 of the Food and Agricultural Code, as repealed by the act
adding this section.
(c) (1) The State Energy Resources Conservation and Development
Commission shall, upon determining that a facility is eligible for
funding, provide incentives to the facility, consistent with this
section.
(2) The State Energy Resources Conservation and Development
Commission shall complete the issuance of incentive payments for
qualified agricultural biomass purchased from July 1, 2003, through
December 31, 2003, inclusive, within 90 days of the effective date of
this section.
(3) In providing incentives pursuant to this section, the State
Energy Resources Conservation and Development Commission shall
provide incentive payments in the amount of ten dollars ($10) for
each ton of qualified agricultural biomass received by a facility and
converted into energy. The State Energy Resources Conservation and
Development Commission may increase the incentive payment for types
or sources of qualified agricultural biomass that require greater
incentives to achieve meaningful increases in usage by facilities, as
determined by the State Energy Resources Conservation and
Development Commission.
(4) Notwithstanding any other provision of law, the receipt of
incentives pursuant to this section does not make a facility
ineligible for any other production subsidy, rebate, buydown, or
other incentive funded through electricity surcharges, except that
receipt of incentives funded through electricity surcharges shall
preclude receipt of biomass-to-energy incentives financed by the
General Fund.
(5) The State Energy Resources Conservation and Development
Commission, in consultation with the California Environmental
Protection Agency, may adopt guidelines governing the incentives
authorized under this section at a publicly noticed meeting offering
all interested parties an opportunity to comment. Substantive changes
to the guidelines may not be adopted without at least 10 days'
written notice to the public. The public notice of meetings required
by this paragraph may not be less than 30 days. Notwithstanding any
other provision of law, any guidelines adopted pursuant to this
section shall be exempt from the requirements of Chapter 3.5
(commencing with Section 11340) of Division 3 of Title 2 of the
Government Code. Adoption of guidelines shall not delay the timing of
the payment of incentives that are required by paragraph (2).
(6) Awards made pursuant to this section are grants, subject to
appeal to the State Energy Resources Conservation and Development
Commission upon a showing that factors other than those contained in
this section, and any guidelines adopted pursuant to this section,
were a substantial factor in making the award. Any actions taken by
an applicant to apply for, become, or remain eligible for an award,
shall not be the rendering of goods, services, or a direct benefit to
the State Energy Resources Conservation and Development Commission.
(d) Facilities receiving incentive payments pursuant to this
section are not eligible to receive emission reduction credits for
any qualified agricultural biomass for which a facility has received
an incentive payment. Generators or suppliers of qualified
agricultural biomass may not receive emission reduction credits for
any qualified agricultural biomass for which a facility has received
an incentive payment. For purposes of this section, "emission
reduction credits" means a credit for a reduction in the emission of
an air contaminant that is banked and is available to offset
increases in emissions pursuant to Section 40709, and the regulations
adopted pursuant to that section.