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 Bill No. 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.

LEGISLATIVE COUNSEL’S DIGEST

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 in end delete begin insert concurrent with the preparation of end insert the integrated energy policy report begin insert , to identify end 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:

SECTION 1.  

Section 25303.5 is added to the Public Resources
Code, to read:

25303.5.  

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

(b) Beginning November 1, 2015, and every four years
thereafter, the commission begin delete shall identify in end delete begin insert shall, with end insert the
integrated energy policy report prepared pursuant to Section begin delete 25302 end delete
begin insert 25302, identify end insert strategies to maximize the benefits obtained from
natural gas, including biomethane for purposes of this section, as
an energy source, helping the state realize the environmental and
cost benefits afforded by natural gas. As part of this report, the
commission, at a minimum, shall identify strategies and options
for each of the following:

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

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

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

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

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

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

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

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

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

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

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