Renewable energy: biomass: algae.

Existing law requires the State Energy Resources Conservation and Development Commission to administer the Renewable Energy Resources Program, which provides financial assistance for the development of renewable electricity generation facilities, including facilities that use biomass. This bill would enact the Salton Sea Stabilization and Agricultural Cultivation Act, which would authorize the Secretary of the Natural Resources Agency to establish an Algae Production Program in the Imperial Valley to meet high-priority economic and environmental goals, expedite regulatory application and review processes, and provide grants to facilitate research and the commercial development of algae for fuels, foods, medicines, and clean water within the state. The bill would further authorize the secretary to provide grants to eligible research institutions and commercial enterprises for research and demonstration projects leading to the commercial development of algae. The bill would require a commercial enterprise for a demonstration project, to be eligible for a grant, to agree to a royalty or other revenue arrangement. The bill would require royalties and revenues received to be deposited into the Algae Production Program Fund, which is created by this bill. The bill would require the secretary, in consultation with the Secretary of Business, Transportation and Housing, the Secretary of Food and Agriculture, the Chairman of the State Air Resources Board, and the Governor's Tribal Advisor, if an algae production program is established pursuant to the bill, to publish a report, no later than July 1, 2013, that enumerates the environmental and economic benefits of the algae industry, and contains specified recommendations. The bill would also require the secretary by July 1, 2013, to initiate the rulemaking process for the Algae Production Program and a process for the application, review, and issuance of grants, and, no later than July 1, 2014, to publish a final rule to implement recommendations contained in the above-described report.