SB 1237

Bill Subjects

Abstract

Existing law regulates natural gas in various contexts, including for purposes of manufacturing, transportation, energy generation, utility service, and storage, and establishes various programs, funds, and charges related to natural gas, including the Natural Gas Services Program and the natural gas surcharge. Existing law defines "natural gas," for specified purposes, as all gas produced in this state, natural or manufactured, except propane, for light, heat, or electricity. Existing law requires the Director of General Services to operate the Natural Gas Services Program to consolidate and address the needs of multiple state agencies for the procurement of natural gas and related services. Existing law creates the Department of General Services Natural Gas Services Program Account, which is continuously appropriated to the department for purposes of operating that program. Existing law requires the Public Utilities Commission to impose a surcharge on all natural gas consumed in this state to fund low-income assistance programs, cost-effective energy efficiency and conservation activities, and public interest research and development that are not adequately provided by the competitive and regulated markets. Existing law establishes the Gas Consumption Surcharge Fund, which is continuously appropriated to that commission for specified purposes, as prescribed. This bill would generally replace the term "natural gas" with the term "methane" throughout all of the state's codes. Because some natural gas is not methane and some methane is not natural gas, the bill would authorize the expenditure of continuously appropriated moneys for new purposes, thereby making an appropriation, and would also change the applicability of various charges, and the purposes for which revenues from those charges may be used. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime. Because certain of the above provisions would be part of the act and a violation of a Public Utilities Commission action implementing this bill's requirements would be a crime, and to the extent this bill would mandate that a local entity provide a new program or higher level of service, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.