BILL NUMBER: SB 939 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 28, 2011
AMENDED IN ASSEMBLY JUNE 15, 2011
INTRODUCED BY Senator Wright
MARCH 21, 2011
An act to amend Sections 890, 892, 892.2, 893, and 894
of, and to repeal Section 892.1 of, the Public Utilities Code,
relating to the natural gas surcharge.
LEGISLATIVE COUNSEL'S DIGEST
SB 939, as amended, Wright. Natural gas surcharge.
Existing law establishes requires the
Public Utilities Commission to establish a surcharge on all
natural gas consumed in the state to fund certain low-income
assistance programs, cost-effective energy efficiency and
conservation activities, and public interest research and
development. Existing law requires a public utility gas corporation,
as defined, to collect the surcharge from natural gas consumers, as
specified, and to remit the moneys collected to the State Board of
Equalization (state board) on a quarterly basis. Existing law
requires persons consuming natural gas delivered by an interstate
pipeline to pay the surcharge to the state board. Existing law
requires every public utility gas corporation and every person
consuming natural gas transported by a provider other than the public
utility gas corporation to file a quarterly return with the state
board in the form prescribed by the state board. The money from the
surcharge is transmitted by the state board to the Treasurer for
deposit in the Gas Consumption Surcharge Fund and is continuously
appropriated to specified entities, including to the commission, or
to an entity designated by the commission, to fund low-income
assistance programs, cost-effective energy efficiency and
conservation activities, and public interest research and development
not adequately provided by the competitive and regulated markets.
This bill would require the commission to
establish rate adjustments to fund the
specified low-income assistance programs, cost-effective energy
efficiency and conservation activities, and public interest research
and development, and would require the surcharges imposed on natural
gas customers to be equal to those rate adjustments. The bill
would require only persons consuming natural gas delivered by an
interstate pipeline to pay the surcharge quarterly to the
state board and require only those persons consuming natural gas
transported by a provider other than the public utility gas
corporation to file a quarterly return with the state board. A public
utility gas corporation would continue to collect the surcharge to
fund the specified programs, but would not remit the moneys collected
to the state board. The bill would repeal existing provisions
relieving public utility gas corporations from liability to collect
the surcharges for specified uncollected and worthless accounts.
The bill would make other conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 890 of the Public
Utilities Code is amended to read:
890. (a) On and after January 1, 2001, there shall be
imposed a surcharge on all natural gas consumed in this state.
The commission shall establish a surcharge
rate adjustments to fund low-income assistance
programs required by Sections 739.1, 739.2, and 2790 and
cost-effective energy efficiency and conservation activities and
public interest research and development authorized by Section 740
and not adequately provided by the competitive and regulated markets.
Upon implementation of this article, funding for those
programs shall be removed from the rates of gas utilities.
(b) (1) Except as specified
in Section 898, a public utility gas corporation, as defined in
subdivision (b) of Section 891, shall collect the surcharge
rate adjustments imposed pursuant to
subdivision (a) from any person consuming natural gas in this state
who receives gas service from the public utility gas corporation.
(2) A public utility gas corporation is relieved from liability to
collect the surcharge insofar as the base upon which the surcharge
is imposed is represented by accounts which have been found to be
worthless and charged off in accordance with generally accepted
accounting principles. If the public utility gas corporation has
previously paid the amount of the surcharge it may, under regulations
prescribed by the State Board of Equalization, take as a deduction
on its return the amount found to be worthless and charged off. If
any accounts are thereafter collected in whole or in part, the
surcharge so collected shall be paid with the first return filed
after that collection. The commission may by regulation promulgate
other rules with respect to uncollected or worthless accounts as it
determines to be necessary to the fair and efficient administration
of this part.
(c) Except as specified in Section 898, all persons consuming
natural gas in this state that has been transported by an interstate
pipeline, as defined in subdivision (c) of Section 891, shall be
liable for the a surcharge equal
to the rate adjustment imposed pursuant to subdivision (a).
(d) The commission shall annually determine the amount of money
required for the following year to administer this chapter and fund
the natural gas related programs described in subdivision (a) for the
service territory of each public utility gas corporation.
(e) The commission shall annually establish a surcharge
rate for each class of customer for the service territory
of each public utility gas corporation. A customer of an interstate
gas pipeline, as defined in subdivision (c) of Section
891, shall pay the same surcharge a surcharge
that is equal to the same rate as the customer would pay if
the customer received service from the public utility gas corporation
in whose service territory the customer is located. The commission
shall determine the total volume of retail natural gas transported
within the service territory of a utility gas provider, that is not
subject to exemption pursuant to Section 896, for the purpose of
establishing the surcharge rate.
(f) The commission shall allocate the appropriate rate
adjustment and surcharge for gas used by all
customers, including those customers who were not subject to the
surcharge prior to January 1, 2001 2012
.
(g) The commission shall notify the State Board of Equalization of
the surcharge rate for each class of customer
served by an interstate pipeline in the service territory of a public
utility gas corporation.
(h) The State Board of Equalization shall notify each person who
consumes natural gas delivered by an interstate pipeline of the
surcharge rate for each class of customer within
the service territory of a public utility gas corporation.
(i) The surcharge imposed pursuant to subdivision (a) shall be in
addition to any other charges for natural gas sold or transported for
consumption in this state. Effective on July 1, 2001, the surcharge
imposed pursuant to this article shall be identified as a separate
line item on the bill of a customer of a public utility gas
corporation.
(j)
(i) Notwithstanding subdivision (a), public
P ublic utility gas corporations
shall continue to collect in rates those costs of programs described
in subdivision (a) of Section 890 that are
uncollected prior to the operative date of this article.
SECTION 1. SEC. 2. Section 892 of
the Public Utilities Code is amended to read:
892. Persons consuming natural gas delivered by an interstate
pipeline shall pay the surcharge quarterly to the State
Board of Equalization in the form of remittances. The board shall
transmit the payments to the Treasurer who shall deposit the payments
in the Gas Consumption Surcharge Fund, which is hereby created in
the State Treasury.
SEC. 2. SEC. 3. Section 892.1 of the
Public Utilities Code is repealed.
SEC. 3. SEC. 4. Section 892.2 of the
Public Utilities Code is amended to read:
892.2. On or before the last day of the month following each
calendar quarter, a return for the preceding quarterly period shall
be filed with the State Board of Equalization, in such form as the
board may prescribe, prescribe. A return
shall be filed by every person consuming, as defined in this
article, natural gas transported by a provider other than the public
utility gas corporation. The return shall be signed by the person
required to file the return or by his or her duly authorized agent.
SEC. 4. SEC. 5. Section 893 of the
Public Utilities Code is amended to read:
893. The State Board of Equalization shall administer the
surcharge imposed pursuant to this article that is remitted to it in
accordance with the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code.
SEC. 5. SEC. 6. Section 894 of the
Public Utilities Code is amended to read:
894. The State Board of Equalization may collect any unpaid
surcharge imposed pursuant to this article that is to be remitted to
it pursuant to Section 892.2.