BILL ANALYSIS Ó
AB 1257
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1257 (Bocanegra)
As Amended September 10, 2013
Majority vote
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|ASSEMBLY: |77-0 |(May 29, 2013) |SENATE: |37-2 |(September 11, |
| | | | | |2013) |
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Original Committee Reference: NAT. RES.
SUMMARY : Requires the California Energy Commission (CEC) to prepare
a report every four years regarding natural gas.
The Senate amendments :
1)Change the deadline for the initial report from January 1 to
November 1, 2015.
2)Delete the requirement for the Governor to review the report and
report his or her agreement or disagreement to the Legislature
within 180 days.
3)Make other minor and conforming changes.
EXISTING LAW requires CEC to assess electricity infrastructure
trends and issues facing California and develop and recommend energy
policies for the state to address and resolve such issues as part of
its biennial Integrated Energy Policy Report (IEPR). (SB 1389
(Bowen), Chapter 568, Statutes of 2002). The IEPR must contain an
overview of major energy trends and issues facing the state,
including, but not limited to, supply, demand, pricing, reliability,
efficiency, and impacts on public health and safety, the economy,
resources, and the environment. The IEPR requires an examination of
natural gas issues, including forecasts of natural gas supply,
demand and prices and evaluation of a wide range of related factors.
The CEC has discretion to examine other relevant issues.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required the CEC, by January 1, 2015, and then every four years
thereafter, to prepare a report for the Legislature identifying
strategies to maximize the benefits of natural gas. As part of
the report, the CEC must identify strategies and options to:
AB 1257
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a) Make the best use of natural gas as a transportation fuel,
including for movement of freight, vessels, mass transit, and
other commercial and passenger vehicle use and identifying
methods to increase the development of natural gas refueling
infrastructure.
b) Identifying 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 (GHG) targets.
c) Assessing the potential of natural gas as a low-emission
resource, including potential zero and near-zero GHG emissions,
natural gas, and biogas options, taking into account impact on
electric system operations.
d) Optimizing 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.
e) Analyzing effective methods and strategies by which the
electric and natural gas industries can facilitate
implementation of any of the strategies identified in the
study.
f) 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.
g) Determine the role that natural gas can play in the
development of zero net energy buildings.
h) Optimize the methods by which the pursuit of these
strategies can facilitate jobs development in the private
sector, particularly in distressed areas.
i) Optimize the methods by which state and federal fiscal
policy can facilitate any of the proposed strategies.
j) Evaluating the incremental beneficial and adverse economic
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cost and environmental impacts of proposed strategies,
including lifecycle GHG emissions from production,
transportation, and use of natural gas based on authoritative,
peer-reviewed, and science-based analysis, or as determined by
the Air Resources Board.
2)Required the CEC, in developing the report, to consider and
respond to comments and consult with relevant state agencies.
3)Required the Governor to review the report and report his or her
agreement or disagreement to the Legislature within 180 days. The
report, as modified by the Governor, shall thereafter comprise the
natural gas policy of the state.
FISCAL EFFECT : According to the Senate Appropriations Committee,
on-going costs of at least $140,000 from the Energy Resources
Programs Account (General) for developing the information required
in a quadrennial report.
COMMENTS : Notwithstanding natural gas' undisputable value as an
energy source, California's dependence on natural gas, approximately
85% of which is imported, comes with significant consequences for
the economy, environment, public health and safety. Examples
include significant GHG emissions, air and water pollution
associated with electric generation, as well as environmental and
safety hazards associated with pipeline leaks and natural gas
production. In addition, while natural gas is currently cheap and
plentiful due to the recent boom in domestic shale production
attributable to hydraulic fracturing, it was not so long ago that
California experienced severe price spikes and reliability problems
associated with constrained supplies of natural gas and natural
gas-powered electric generation. This was perhaps the most
significant factor behind the enactment of the original Renewables
Portfolio Standard in 2002.
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092 FN: 0002746