Amended in Senate September 10, 2013

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 Section 25303.5 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, beginning November 1, 2015, and every 4 years thereafter,begin delete to identify inend deletebegin insert concurrent with the preparation ofend insert the integrated energy policy reportbegin insert, to identifyend insert strategies to maximize the benefits obtained from natural gas as an energy source, as specified.

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 25303.5 is added to the Public Resources
, to read:



(a) This section shall be known and may be cited, as
4the Natural Gas Act.

5(b) Beginning November 1, 2015, and every four years
6thereafter, the commission begin delete shall identify inend delete begin insert shall, withend insert the
7integrated energy policy report prepared pursuant to Sectionbegin delete 25302end delete
8begin insert 25302, identifyend insert 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,
15as appropriate, including for movement of freight, vessels, mass
16transit, and other commercial and passenger vehicle use and
17identifying methods to develop natural gas refueling infrastructure.

18(2) Determining 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) Taking the best advantage of natural gas as a low-emission
23resource, including potential zero and near-zero greenhouse gas
24emissions, natural gas, and biogas options, taking into account the
25impact on electric system operations.

26(4) Optimizing the role of natural gas as a flexible and
27convenient end use energy source, including the efficient use of
28natural gas for heating, water heating, cooling, cooking, engine
29operation, and other end uses, and the optimization of appliances
30for these uses.

31(5)  Identifying effective methods by which the electric and
32natural gas industries can facilitate implementation of any of the
33strategies identified in this section.

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

12(7) Determining the role that natural gas can play in the
13development of zero net energy buildings, as appropriate.

14(8) Optimizing the methods by which the pursuit of these
15strategies can facilitate jobs development in the private sector,
16particularly in distressed areas.

17(9) Optimizing the methods by which state and federal policy
18can facilitate any of the proposed strategies.

19(10) Evaluating the incremental beneficial and adverse economic
20cost and environmental impacts of proposed strategies, including
21life-cycle greenhouse gas emissions from production,
22transportation, and use of natural gas, based on authoritative,
23peer-reviewed, and science-based analysis or in consultation with
24the State Air Resources Board.

25(c) In developing the strategies described in subdivision (b), the
26commission shall consult with the Public Utilities Commission,
27the State Water Resources Control Board, the Independent System
28Operator, the State Air Resources Board, the Department of Oil,
29Gas, and Geothermal Resources, and the Department of
30Conservation to obtain relevant input. The report is intended to
31assist in establishing state policy and does not independently
32change any statute, regulation, or regulatory decision.