BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1257
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1257 (Bocanegra) - As Amended:  May 6, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:                          State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Energy Commission (CEC) to  
          prepare a report identifying the benefits and uses of natural  
          gas.  Specifically, this bill: 

          1)Requires the CEC, by January 1, 2015 and every four years  
            thereafter, to prepare a report for the Legislature  
            identifying strategies to maximize the benefits and uses of  
            natural gas.
              
          2)Requires the CEC, in developing the report, to include  
            findings from the current integrated energy policy report  
            (IEPR) and provide an opportunity for public comment. 

          3)Requires the CEC, in developing the report, to consider and  
            respond to comments and consult with specified state agencies.

          4)Requires the Governor to review the report and report to the  
            Legislature within 180 days.  The report, as modified by the  
            Governor, shall thereafter comprise the natural gas policy of  
            the state and be incorporated into subsequent IEPRs.

           FISCAL EFFECT  

          Increased one-time and ongoing costs for the CEC to prepare the  
          report, potentially in the $100,000 to $300, 000 range.

           COMMENTS  

           1)Rationale.   According to the author, natural gas is a pivotal  
            component in California's achievement of the GHG reductions  








                                                                  AB 1257
                                                                  Page  2

            required by the Global Climate Change Act of 2006.   

             California lacks a long-term strategy to maximize the benefits  
            of natural gas as part of the state's alternative energy  
            portfolio.  This bill will provide the information necessary  
            to design the strategy.

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081