SECTIONS 3805-3810 - California Statutes

PUBLIC RESOURCES CODE

SECTION 3805-3810

3805. The definitions set forth in this article shall govern the
construction of this chapter.

3805.5. "Commission" means the State Energy Resources Conservation
and Development Commission.

3806. "County of origin" means any county in which the United
States has leased lands for geothermal development.

3807. "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.

3808. "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.

3809. "Private entity" means any individual or organization engaged
in the exploration and development of geothermal energy for profit.

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) 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) 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) 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) A "royalty agreement" is an award repayment or program
reimbursement agreement and is subject to all of the following
conditions:
(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) 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) The commission shall determine the duration of the royalty
agreement and may negotiate a collection schedule.
(4) The commission, for separate consideration, may negotiate and
receive payments to provide for an early termination of the royalty
agreement.
(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) The commission may require advance notice of any transaction
involving intellectual property rights.