California Energy Commission

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Geothermal Grant and Loan Program

Overview of Renewable Energy Division Funding Programs

Cheryl Closson February 26, 2016

California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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California Energy Commission

Program Purpose

The overall purpose of the Geothermal Grant and Loan Program is to:

 Promote development and maintenance of California’s vast geothermal energy resources;  Mitigate any adverse impacts caused by geothermal development; and  Help local jurisdictions offset the costs of providing public services required by geothermal development.

California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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Geothermal Background

 Geothermal energy comes from the heat of the earth.

 Geothermal resources are often in the form of steam or hot water.

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California Energy Commission Geothermal energy uses include:

   Electrical generation, Food processing, Building heating and cooling,    Water heating, Aquaculture, Spas and bathing.

Poster of uses by the Geothermal Education Office 2005. Available at geothermaleducation.org.

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 California is blessed with both high temperature and low temperature geothermal resources.

 Geothermal resources occur in many areas of the state.

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California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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California Energy Commission

Program Background

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Authorized by the Legislature in 1980 by Assembly Bill 1905 (Bosco, Chapter 139, Statutes of 1980).

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Often called the “GRDA” Program after its Geothermal Resources Development Account (GRDA) funding source.

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Funding comes from royalty and lease payments collected from geothermal developments on federal land in California.

California Energy Commission

Program Background (cont.)

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Program awards are made every 2 – 3 years through competitive project solicitations called Grant Funding Opportunities (GFOs).

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The regulations governing the program application and award process are at Title 20, California Code of Regulations, sections 1660 1665 and Appendix A.

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Since the program’s beginning, the Energy Commission has awarded close to $74 million to co-fund approximately 184 projects.

California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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Eligible projects include:

 Geothermal resource assessment and exploration.

 Environmental monitoring and facility inspection.

 Geothermal direct use and electric generation technology research and development.

 Identification of impacts from geothermal development and mitigation of impacts.

 Geothermal-related local and regional planning, policy, and ordinance development.

 Local jurisdiction administration related to geothermal development.

 Development and maintenance of public services and facilities necessitated by geothermal development and production.

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California Energy Commission Eligible Applicants and Requirements: Local Jurisdictions

, including cities, counties, and districts.

Private Entity

engaged in geothermal energy exploration and development for profit.

 Must provide 20% of the overall project cost as match.

 Must provide a resolution from its governing body approving submittal of the application.

 Must provide 50% of the overall project cost as match.

 Project must have tangible benefits to a local jurisdiction.

 Excludes Public Utility Districts that generate for sale more than 50 MW of electricity.

 Award must be approved by the city, county or Indian reservation within which the project is to be located.

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California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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Project Examples

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County of Modoc $1,129,619 Grant

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Project Examples (cont.)

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Modoc Joint Unified School District $3,155,759 Grant

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Project Examples (cont.)

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Ormat Nevada, Inc. $631,620 Grant

California Energy Commission

Project Examples (cont.)

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Paulsson, Inc. $883,002 Grant

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California Energy Commission

Agenda

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Program Purpose Geothermal Background Program Background Eligibility Project Examples Questions

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California Energy Commission

California Energy Commission

Stay Informed

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More information about the Geothermal Grant and Loan Program (GRDA): http://www.energy.ca.gov/geothermal/grda.html

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Energy Commission Web Site: http://www.energy.ca.gov/

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Energy Commission Funding Opportunities: http://www.energy.ca.gov/contracts/

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California Energy Commission

Contact Information

Cheryl Closson, P.G.

Renewable Energy Division [email protected]

(916) 651-0315

California Energy Commission

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