AB 1257, as amended, Bocanegra. Energy: State Energy Resources Conservation and Development Commission: natural gas.
The Warren-Alquist State Energy Resources Conservation and Development Act
begin delete (act)end delete establishes the State Energy Resources Conservation and Development Commission begin delete (Energy Commission)end delete and requires the commission to prepare a biennial integrated energy policy report containing specified information related to major energy trends and issues facing the state, as well as a biennial energy policy review. The act requires the commission to certify sufficient sites and related facilities that are required to provide a supply of electricity sufficient to accommodate projected demand for power
This bill would
begin delete enact the Natural Gas Act and wouldend delete require the Energy Commission, every 4 years, to prepare and submit to the begin delete Legislatureend delete a report containing specified information identifying strategies to maximize the benefits obtained from natural gas as an energy source, as specified. The bill would further require the Governor to review that report by a specific date and to report specific agreement or disagreement
with, or modifications to, the report to the Legislature, begin delete andend delete would declare the modified version of the report the natural gas policy of the state. begin delete This bill would also make legislative findings and declarations including, among other things, that it is the policy of the state to reduce greenhouse gas emissions and that an efficient and effective strategy for the use of natural gas has potential for helping to meet these objectives.end delete
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 3.5 (commencing with Section 25250)
26is added to Division 15 of the Public Resources Code, to read:
The legislature finds and declares all of the following:
33(a) It is the policy of the state to reduce greenhouse gas
34emissions and emissions of criteria pollutants while minimizing
35the potential cost of these efforts on the citizens of the state. State
36law specifically requires that greenhouse gas emissions targets be
37 achieved “in a manner that minimizes costs and maximizes benefits
38for California’s economy.”
39(b) A June 2011 study by the Massachusetts Institute of
40Technology identified natural gas as “one of the most cost-effective
P5 1means by which to maintain energy supplies while reducing CO2
2 emissions.” The MIT study found that “the current supply outlook
3for natural gas will contribute to greater competitiveness of U.S.
4manufacturing, while the use of more efficient technologies could
5offset increases in demand and provide cost-effective compliance
6with emerging environmental requirements.”
7(c) In April 2012, the President of the United States issued an
8executive order stating, among other things, that natural gas as an
9energy source “creates jobs and provides economic benefits to the
10entire domestic production supply chain, as well as to chemical
11and other manufacturers, who benefit from lower feedstock and
12energy costs. By helping to power our transportation system,
13greater use of natural gas can also reduce our dependence on oil.”
14The President concluded, “For these reasons, it is vital that we
15take full advantage of our natural gas resources, while giving
16American families and communities confidence that natural and
17cultural resources, air and water quality, and public health and
18safety will not be compromised.”
19(d) An efficient and effective strategy for the use of natural gas
20has potential for helping to meet the objectives described in
22(e) Natural gas represents a flexible energy supply source for,
23among other things, heating, water heating, cooling, cooking,
24engine operation, and electric generation and provides a valuable
25complement to the development of renewable generation sources,
26particularly intermittent generating sources.
27(f) Natural gas represents an affordable and flexible supply
28source for transportation purposes, including both commercial and
29residential uses as a substitute for diesel and gasoline-fueled
30vehicles. In developing the State Alternative Fuels Plan, as part
31of implementation of Assembly Bill 1007, (Ch. 371, Stats. 2005),
32the commission and the State Air Resources Board assessed natural
33gas as part of a broad portfolio of alternative fuels the state should
34be pursuing, finding, among other things, that natural gas as a
35transportation fuel represented the most cost-effective alternative
36transportation fuel option for reducing greenhouse gas emissions
37through a study period extending to 2050.
38(g) California does not currently have a long-term strategy to
39maximize the benefits of natural gas as part of the state’s portfolio
40of energy sources in a low carbon future.
(a) By January 1, 2015, and every four years thereafter,
2notwithstanding section 10231.5, of the Government Code, the
3commission shall prepare and submit to the Legislature a report
4that identifies strategies to maximize the benefits obtained from
5natural gas as an energy source, helping the state realize the
6environmental and cost benefits afforded by natural gas. As part
7of this report, the commission, at minimum, shall identify strategies
8and options for each of the following:
9(1) Making the best use of natural gas as a transportation fuel,
10including for movement of freight, vessels, mass transit, and other
11commercial and passenger vehicle use and identifying methods to
12increase the development of natural gas refueling infrastructure.
13(2) Determining the optimal role of natural gas-fired generation
14as part of a resource portfolio, including, but not limited to,
15combined heat and power, and the impact of that role on meeting
16greenhouse gas targets.
17(3) Taking the best advantage of natural gas as a low-emission
18and renewable resource, including potential zero and near-zero
19greenhouse gas emissions, natural gas, and biogas options, taking
20into account impact on electric system operations.
21(4) Optimizing the advantage of natural gas as a flexible and
22convenient end use energy source, including the efficient use of
23natural gas for heating, water heating, cooling, cooking, engine
24operation, and other end uses, and the optimization of appliances
25for these uses.
26(5) Identifying methods by which
gas corporations can facilitate
27implementation of any of the strategies identified in the study.
28(6) Determining the extent to which a long-term policy is needed
29to ensure adequate infrastructure and storage, and developing
30strategies for pursuing additional infrastructure development to
31maintain or enhance pipeline and system reliability, including
32increased natural gas storage. In developing those strategies, the
33commission shall consider needed policies to protect against system
34capacity constraints, mitigate investment risk associated with the
35long term investment in infrastructure in an evolving energy
36market, and identify factors that could limit the ability to receive
37maximum benefits from natural gas as an energy resource.
38(7) Determining the role that natural gas can play in the
39development of zero net energy buildings.
P7 1(8) Optimizing the methods by which the pursuit of these
2strategies can facilitate jobs development in the private sector,
3particularly in distressed areas.
4(9) Optimizing the methods by which state and federal fiscal
5policy can facilitate any of the proposed strategies.
6(b) In developing the report described in subdivision (a), the
7commission shall provide an opportunity for interested parties to
8offer relevant input. The commission shall receive and address
9information from relevant individuals and groups, including entities
10within the natural gas production and delivery chain, end use
11customers, environmental experts, and federal policymakers. Where
12the commission does not accept relevant recommendations of such
13interested parties, it shall provide an explanation and any
14supporting factual basis.
15(c) In developing the report described in subdivision (a), the
16commission shall consult with the Public Utilities Commission,
17the State Water Resources Control Board, the State Air Resources
18Board, the Department of Oil, Gas, and Geothermal Resources,
19and the Department of Conservation to obtain relevant input.
20(d) The Governor shall review the report described in
21subdivision (a) and shall, on or before 180 days after receipt of
22the report, report further to the Legislature the Governor’s
23agreement or disagreement with, and recommended deletions,
24additions, and modifications to, the policy recommendations
25contained in that report. The report, as modified by the Governor,
26shall thereafter comprise the natural gas policy of the State of
28(e) The report to be submitted pursuant to subdivisions (a) and
29(d) shall be submitted in compliance with Section 9795 of the