The definitions set forth in this article shall govern the construction of this chapter.
Disposition of Geothermal RevenuesDefinitions
Section § 3805
This section indicates that the definitions provided in the article are the ones that should be used when interpreting this chapter of the law.
definitions interpretation article
Section § 3805.5
This section defines the term 'Commission' to specifically refer to the State Energy Resources Conservation and Development Commission.
“Commission” means the State Energy Resources Conservation and Development Commission.
State Energy Resources Conservation Development Commission
Section § 3806
This law defines "county of origin" as any county where the U.S. government has leased land for geothermal energy development.
“County of origin” means any county in which the United States has leased lands for geothermal development.
county of origin geothermal development leased lands
Section § 3807
This law defines "local jurisdiction" as any Indian government unit, city, county, district, or combination for shared powers, excluding public utility districts that generate over 50 megawatts of electricity for sale.
“Local jurisdiction” means any unit of Indian government, any city, county, or district, including, but not limited to, a regional planning agency and a public utility district, or any combination thereof formed for the joint exercise of any power, except that “public utility district” does not include any public utility district which generates for sale more than 50 megawatts gross of electricity.
local jurisdiction Indian government regional planning agency
Section § 3808
This law defines "geothermal resources" as those identified by either the United States Geological Survey, the Department of Conservation, or both. It also requires the department to regularly review these designations and update them as needed. Any changes must be shared with the State Energy Resources Conservation and Development Commission.
“Geothermal resources” means geothermal resources designated by the United States Geological Survey or the Department of Conservation, or by both.
The department shall periodically review, and revise as necessary, its designation of geothermal resource areas and shall transmit any changes to the State Energy Resources Conservation and Development Commission.
geothermal resources United States Geological Survey Department of Conservation
Section § 3809
This section defines what a "private entity" is, specifically referring to individuals or organizations that explore and develop geothermal energy with the intention of making a profit.
“Private entity” means any individual or organization engaged in the exploration and development of geothermal energy for profit.
private entity definition geothermal energy profit-driven exploration
Section § 3810
This section allows a commission to create agreements for the repayment of grants or awards, ensuring funds are replenished for future use. These agreements can include conditions where recipients pay back when they profit from projects developed using the award. The commission can require transparency and access to financial information to calculate repayments accurately.
A royalty agreement is a type of repayment where a set percentage of revenue (up to 5%) from the project is paid to the commission. Terms for repayment, duration, and possible early termination of these agreements are determined by the commission.
If a recipient defaults on these agreements, any intellectual property arising from the project may return to the state. The commission also has the right to be informed of any deals affecting the intellectual property rights related to these projects.
(a)Copy CA Public Resources Code § 3810(a)
(1)Copy CA Public Resources Code § 3810(a)(1) “Award repayment or program reimbursement agreement,” including a “royalty agreement,” as specified in subdivision (b), means a method used at the discretion of the commission to determine and establish the terms of replenishment of program funds, including, at a minimum, repayment of the award to provide for further awards under this chapter. The award repayment or program reimbursement agreement may provide that payments be made to the commission when the award recipient, affiliate of the award recipient, or third party receives, through any kind of transaction, an economic benefit from the project, invention, or product developed, made possible, or derived, in whole or in part, as a result of the award.
(2)CA Public Resources Code § 3810(a)(2) An award repayment or program reimbursement agreement shall specify the method to be used by the commission to determine and establish the terms of repayment and reimbursement of the award.
(3)CA Public Resources Code § 3810(a)(3) The commission may require due diligence of the award recipient and may take any action that is necessary to bring the project, invention, or product to market.
(4)CA Public Resources Code § 3810(a)(4) Subject to the confidentiality requirements of Section 2505 of Title 20 of the California Code of Regulations, the commission may require access to financial, sales, and production information, and to other agreements involving transactions of the award recipient, affiliates of the award recipient, and third parties, as necessary, to ascertain the royalties or other payments due the commission.
(b)CA Public Resources Code § 3810(b) A “royalty agreement” is an award repayment or program reimbursement agreement and is subject to all of the following conditions:
(1)CA Public Resources Code § 3810(b)(1) The royalty rate shall be determined by the commission and shall not exceed 5 percent of the gross revenue derived from the project, invention, or product.
(2)CA Public Resources Code § 3810(b)(2) The royalty agreement shall specify the method to be used by the commission to determine and establish the terms of payment of the royalty rate.
(3)CA Public Resources Code § 3810(b)(3) The commission shall determine the duration of the royalty agreement and may negotiate a collection schedule.
(4)CA Public Resources Code § 3810(b)(4) The commission, for separate consideration, may negotiate and receive payments to provide for an early termination of the royalty agreement.
(c)Copy CA Public Resources Code § 3810(c)
(1)Copy CA Public Resources Code § 3810(c)(1) The commission may require that the intellectual property developed, made possible, or derived, in whole or in part, as a result of the award repayment or program reimbursement agreement, revert to the state upon a default in the terms of the award repayment or program reimbursement agreement or royalty agreement.
(2)CA Public Resources Code § 3810(c)(2) The commission may require advance notice of any transaction involving intellectual property rights.
award repayment program reimbursement royalty agreement
