BILL NUMBER: SB 939 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 15, 2011
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
894, and 895 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 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 rates that are sufficient 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 of an interstate gas pipeline to be equal to
those rate adjustments the rate component
imposed upon the customers of a public utility gas corporation to
fund those programs . 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) The commission shall establish rate adjustments
rates that are sufficient 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.
(b) Except as specified in Section 898, a public utility gas
corporation, as defined in subdivision (b) of Section 891, shall
collect the rate adjustments rates
imposed pursuant to subdivision (a) from any person consuming natural
gas in this state who receives gas service from the public utility
gas corporation.
(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 a surcharge equal to the rate adjustment imposed
component imposed to fund low-income assistance
programs, cost-effective energy efficiency and conservation
activities, and public interest research and development
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 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 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 or, if the customer is not
located within the service territory of a public utility
gas corporation, the applicable surcharge of the public utility gas
corporation with the service territory nearest the customer .
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,
2012.
(g) The commission shall notify the State Board of Equalization of
the surcharge 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 for each class of customer within the service territory of
a public utility gas corporation.
(i) Public utility gas corporations shall continue to collect in
rates those costs of programs described in subdivision (a) that are
uncollected prior to the operative date of this article.
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. 3. Section 892.1 of the Public Utilities Code is repealed.
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. 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. 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. 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.
SEC. 7. Section 895 of the Public
Utilities Code is amended to read:
895. Notwithstanding Section 13340 of the Government Code, moneys
in the Gas Consumption Surcharge Fund are continuously appropriated,
without regard to fiscal years, as follows:
(a) To the commission or an entity designated by the commission to
fund programs described in subdivision (a) of Section 890. If the
commission designates the State Energy
Resources Conservation and Development Commission to
receive funds for public interest research and development,
both of the following shall apply: the Energy
Commission may administer the program pursuant to Chapter 7.1
(commencing with Section 25620) of Division 15 of the Public
Resources Code.
(1) The Controller shall transfer funds to a separate subaccount
within the Public Interest Research, Development, and Demonstration
Fund to pay the State Energy Resources Conservation and Development
Commission for its costs in carrying out its duties and
responsibilities under this article.
(2) The State Energy Resources Conservation and Development
Commission may administer the program pursuant to Chapter 7.1
(commencing with Section 25620) of Division 15 of the Public
Resources Code.
(b) To pay the commission for its costs in carrying out its duties
and responsibilities under this article.
(c) To pay the State Board of Equalization for its costs in
administering this article.