AJR 30 Summary

• Memorializes the U.S. President, Congress, and Treasury Department to clarify that exploratory drilling for geothermal power projects does not constitute "physical work" under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009, allowing projects to remain eligible for federal grants in lieu of tax credits.

• Requests clarification that test wells and exploratory drilling performed before a geothermal resource is verified as commercially viable do not trigger the "commencement of construction" threshold required for grant eligibility.

• Emphasizes that Imperial County, the second-largest geothermal energy producer in the nation, had unemployment rates exceeding 29 percent in late 2009, and new geothermal development would create jobs and provide economic stimulus as intended by the federal act.

• Proposes specific Treasury Department language defining exploratory drilling as preliminary activity that does not constitute physical work of significant nature for determining when construction begins.

• Directs the California Legislature to transmit copies of this resolution to the President, Vice President, Congress, and all California representatives in the U.S. Congress.