Amended in Senate September 5, 2013

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 Sectionbegin delete 25328end deletebegin insert 25303.5end insert 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,begin delete on or before Januaryend deletebegin insert end insertbegin insertbeginning Novemberend insert 1, 2015, and every 4 years thereafter, tobegin delete prepare and submit to the Governor a report containing specified information identifyingend deletebegin insert identify in the integrated energy policy reportend insert strategies to maximize the benefits obtained from natural gas as an energy source, as specified.begin delete 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.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:

P2    1


Section begin delete25328end deletebegin insert25303.5end insert is added to the Public
2Resources Code
, to read:


begin delete25328.end delete
4begin insert25303.5.end insert  

(a) This section shall be known and may be cited, as
5the Natural Gas Act.

6(b) begin deleteOn or before January end deletebegin insertBeginning November end insert1, 2015, and
7every four years thereafter,begin delete notwithstanding Section 10231.5 of
8the Government Code,end delete
the commission shallbegin delete prepare and submit
9to the Legislature a report that identifiesend delete
begin insert identify in the integrated
10energy policy report prepared pursuant to Section 25302end insert
11to maximize the benefits obtained from natural gas, including
12biomethane for purposes of this section, as an energy source,
13helping the state realize the environmental and cost benefits
14afforded by natural gas. As part of this report, the commission, at
15a minimum, shall identify strategies and options for each of the

17(1) Making the best use of natural gas as a transportation fuel,
18begin insert as appropriate, end insert including for movement of freight, vessels, mass
19transit, and other commercial and passenger vehicle use and
20identifying methods tobegin delete increase the development ofend deletebegin insert developend insert natural
21gas refueling infrastructure.

22(2) begin deleteIdentifying end deletebegin insertDetermining end insertthe role of natural gas-fired
23generation as part of a resource portfolio, including, but not limited
24to, combined heat and power, and the impact of that role on
25meeting greenhouse gas targets.

26(3) begin deleteAssessing the potential end deletebegin insertTaking the best advantage end insertof natural
27gas as a low-emission resource, including potential zero and
28near-zero greenhouse gas emissions, natural gas, and biogas
29options, taking into account the impact on electric system
30operationsbegin delete and transportation systemsend delete.

P3    1(4) Optimizingbegin insert the role ofend insert natural gas as a flexible and
2convenient end use energy source, includingbegin insert theend insert efficient usebegin insert of
3natural gasend insert
for heating, water heating, cooling, cooking, engine
4operation, and other end uses, and the optimization of appliances
5for these uses.

6(5) begin deleteAnalyzing end deletebegin insert Identifying end inserteffective methodsbegin delete and strategiesend delete by
7which the electric and natural gas industries can facilitate
8implementation of any of the strategies identified inbegin delete the studyend deletebegin insert this
9sectionend insert

10(6) Determining the extent to which a long-term policy is needed
11to ensure adequate infrastructure and storagebegin delete that addresses both
12demand and climate change,end delete
and developing strategies for pursuing
13additional infrastructure developmentbegin delete and programsend delete to maintain
14or enhance pipeline and systembegin delete integrity andend delete reliability, including
15increased natural gas storage. In developing those strategies, the
16commission shall consider needed policies to protect against system
17capacity constraints, minimize system leakage and related
18emissions, mitigate investment risk associated with the long-term
19investment in infrastructure in an evolving energy market, and
20identify factors that could limit the ability to receive maximum
21benefits from natural gas as an energy resource.

22(7) Determining the role that natural gas can play in the
23development of zero net energy buildings,begin delete meeting statewide
24renewable energy, energy efficiency, and demand reduction goals.end delete

25begin insert as appropriate. end insert

26(8) Optimizing the methods by which the pursuit of these
27strategies can facilitatebegin delete jobend deletebegin insert jobsend insert development in the private sector,
28particularly in distressedbegin delete economic areas and disadvantaged
29communities.end delete
begin insert areas.end insert

30(9) Optimizing the methods by which state and federal policy
31can facilitate any of the proposed strategies.

32(10) Evaluating the incremental beneficial and adverse economic
33cost and environmental impacts of proposed strategies, including
34life-cycle greenhouse gas emissions from production,
35transportation, and use of naturalbegin delete gasend deletebegin insert gas,end insert based on authoritative,
36peer-reviewed, and science-basedbegin delete analysis,end deletebegin insert analysisend insert orbegin delete as
37determined byend delete
begin insert in consultation with end insert the State Air Resources Board.

begin delete

38(c) In developing the report described in subdivision (b), the
39commission shall include the findings of the current integrated
40energy policy report required pursuant to Section 25302 and
P4    1provide an opportunity for public comment consistent with the
2commission’s procedures. The commission shall receive and
3address information from the public, including entities within the
4natural gas production and delivery chain, end use customers,
5environmental experts, and federal policymakers. Where the
6commission does not accept relevant recommendations of such
7interested parties, it shall provide an explanation and any
8supporting factual basis.


end delete

10begin insert(c)end insert In developing thebegin delete reportend deletebegin insert strategiesend insert described in subdivision
11(b), the commission shall consult with the Public Utilities
12Commission,begin insert the State Water Resources Control Board,end insert the
13begin delete Californiaend delete Independent System Operator, the State Air Resources
14Board, the Department of Oil, Gas, and Geothermal Resources,
15and the Department of Conservation to obtain relevant input. The
16report is intended to assist in establishing state policy and does not
17independently change any statute, regulation, or regulatory

begin delete

19(e) Upon adoption of the report described in subdivision (b) by
20the commission, the commission shall transmit the report to the
21Governor who shall review the report and shall, on or before 180
22days after receipt of the report, report further to the Legislature
23the Governor’s agreement or disagreement with, and recommended
24deletions, additions, and modifications to, any policy
25recommendations contained in that report. The report, as modified
26by the Governor, shall thereafter comprise the natural gas policy
27of the State of California, and shall be incorporated into the
28subsequent biennial integrated energy policy report required
29pursuant to Section 25302.

30(f) The report to be submitted pursuant to subdivisions (b) and
31(e) shall be submitted in compliance with Section 9795 of the
32Government Code.

end delete