Amended in Senate June 25, 2013

Amended in Assembly May 6, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1257

Introduced by Assembly Member Bocanegra

February 22, 2013

An act to add Section 25328 to the Public Resources Code, relating to natural gas.


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 establishes the State Energy Resources Conservation and Development Commission, known as the Energy Commission, 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 statewide.

This bill would require the Energy Commission, on or before January 1, 2015, and every 4 years thereafter, to prepare and submit to the Governor 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, would declare the modified version of the report the natural gas policy of the state, and would require the Energy Commission to incorporate the report into the subsequent biennial integrated energy policy report.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


Section 25328 is added to the Public Resources
, to read:



(a) begin deleteOn end deletebegin insertThis section shall be known and may be cited,
4as the Natural Gas Act.end insert

5begin insert(b)end insertbegin insertend insertbegin insertOnend insert or before January 1, 2015, and every four years thereafter,
6notwithstanding Section 10231.5 of the Government Code, the
7commission shall prepare and submit to the Legislature a report
8that identifies strategies to maximize the benefits obtained from
9natural gas, including biomethane for purposes of this section, as
10an energy source, helping the state realize the environmental and
11cost benefits afforded by natural gas. As part of this report, the
12commission, at a minimum, shall identify strategies and options
13for each of the following:

14(1) Making the best use of natural gas as a transportation fuel,
15including for movement of freight, vessels, mass transit, and other
16commercial and passenger vehicle use and identifying methods to
17increase the development of natural gas refueling infrastructure.

18(2) Identifying the role of natural gas-fired generation as part
19of a resource portfolio, including, but not limited to, combined
20heat and power, and the impact of that role on meeting greenhouse
21gas targets.

22(3) Assessing the potential of natural gas as a low-emission
23resource, including potential zero and near-zero greenhouse gas
24emissions, natural gas, and biogas options, taking into accountbegin insert the end insert
25 impact on electric system operations and transportation systems.

26(4) Optimizing natural gas as a flexible and convenient end use
27energy source, including efficient use for heating, water heating,
28cooling, cooking, engine operation, and other end uses, and the
29optimization of appliances for these uses.

30(5) Analyzing effective methods and strategies by which the
31electric and natural gas industries can facilitate implementation of
32any of the strategies identified in the study.

P3    1(6) Determining the extent to which a long-term policy is needed
2to ensure adequate infrastructure and storage that addresses both
3demand and climate change, and developing strategies for pursuing
4additional infrastructure development and programs to maintain
5or enhance pipeline and system integrity and reliability, including
6increased natural gas storage. In developing those strategies, the
7commission shall consider needed policies to protect against system
8capacity constraints, minimize system leakage and related
9emissions, mitigate investment risk associated with the long-term
10investment in infrastructure in an evolving energy market, and
11identify factors that could limit the ability to receive maximum
12benefits from natural gas as an energy resource.

13(7) Determining the role that natural gas can play in the
14development of zero net energy buildings, meeting statewide
15renewable energy, energy efficiency, and demand reduction goals.

16(8) Optimizing the methods by which the pursuit of these
17strategies can facilitate job development in the private sector,
18particularly in distressed economic areas and disadvantaged

20(9) Optimizing the methods by which state and federal
21begin deletefiscalend deletepolicy can facilitate any of the proposed strategies.

22(10) Evaluating the incremental beneficial and adverse economic
23cost and environmental impacts of proposed strategies, including
24life-cycle greenhouse gas emissions from production,
25transportation, and use of natural gas based on authoritative,
26peer-reviewed, and science-based analysis, or as determined by
27the State Air Resources Board.

begin delete

31 28(b)

end delete

29begin insert(c)end insert In developing the report described in subdivisionbegin delete (a),end deletebegin insert (b),end insert
30 the commission shall include the findings of the current integrated
31energy policy report required pursuant to Section 25302 and
32provide an opportunity for public comment consistent with the
33commission’s procedures. The commission shall receive and
34address information from the public, including entities within the
35natural gas production and delivery chain, end use customers,
36environmental experts, and federal policymakers. Where the
37commission does not accept relevant recommendations of such
38interested parties, it shall provide an explanation and any
39supporting factual basis.

begin delete

3 40(c)

end delete

P4    1begin insert(d)end insert In developing the report described in subdivisionbegin delete (a),end deletebegin insert (b),end insert
2 the commission shall consult with the Public Utilities Commission,
3the California Independent System Operator, the State Air
4Resources Board, the Department of Oil, Gas, and Geothermal
5Resources, and the Department of Conservation to obtain relevant
6input. The report is intended to assist in establishing state policy
7and does not independently change any statute, regulation, or
8regulatory decision.

begin delete

11 9(d)

end delete

10begin insert(e)end insert Upon adoption of the report described in subdivisionbegin delete (a)end deletebegin insert (b)end insert
11 by the commission, the commission shall transmit the report to
12the Governor who shall review the report and shall, on or before
13180 days after receipt of the report, report further to the Legislature
14the Governor’s agreement or disagreement with, and recommended
15deletions, additions, and modifications to, any policy
16recommendations contained in that report. The report, as modified
17by the Governor, shall thereafter comprise the natural gas policy
18of the State of California, and shall be incorporated into the
19subsequent biennial integrated energy policy report required
20pursuant to Section 25302.

begin delete

22 21(e)

end delete

22begin insert(f)end insert The report to be submitted pursuant to subdivisionsbegin delete (a)end deletebegin insert (b)end insert
23 andbegin delete (d)end deletebegin insert (e)end insert shall be submitted in compliance with Section 9795 of
24the Government Code.