BILL NUMBER: AB 2672	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 27, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 21, 2014

   An act to add Section 783.5 to the Public Utilities Code, relating
to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2672, as amended, Perea.  Gas: extension of service:
  Access to energy:  disadvantaged 
communities.   communities: San Joaquin Valley. 
    Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical and
gas corporations, as defined. Existing law authorizes the commission
to fix the rates and charges for every public utility, and requires
that those rates and charges be just and reasonable.  Existing law
requires the commission to establish various programs that provide
assistance to low-income electric and gas customers.
   This bill would require the  commission by December 1,
2015, to develop a program, through an existing or new proceeding, to
enable disadvantaged communities in the San Joaquin Valley to
finance the cost of extending natural gas service within those
communities. The bill would impose specified requirements on a gas
corporation that provides natural gas service in the San Joaquin
Valley in connection with the program. The bill would require the
commission to identify potential sources of funds that may be
allocated to the program to reduce the cost to disadvantaged
communities of extending gas service under the program. 
 commission to require a gas corporation that provides natural
gas service in the San Joaquin Valley, by January 31, 2015, to
identify disadvantaged communities in the San Joaquin Valley that do
not have natural gas service. The bill would require the commission,
by March 31, 2015, to initiate a new proceeding to conduct an
affordable energy feasibility study for those communities. The bill
would require the commissio   n to determine whether any
option analyzed in the study would increase access to affordable
energy in an economically viable manner. For   these
options, the bill would require the commission to take appropriate
action and to determine appropriate funding sources. 
   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.  The Legislature finds and declares the following:
   (a) Many low-income communities throughout California's San
Joaquin Valley lack access to natural gas lines.
   (b) Increasing access to  natural gas  
affordable energy  can improve the health, safety, and 
financial security   air   quality  of
these communities. 
   (c) Increasing access to natural gas has the potential of
improving energy affordability and air quality. 
  SEC. 2.    Section 783.5 is added to the  
Public Utilities Code   , to read:  
   783.5.  (a) The commission shall require a gas corporation that
provides natural gas in the San Joaquin Valley, by January 31, 2015,
to identify disadvantaged communities in the San Joaquin Valley that
do not have natural gas service.
   (b) The commission shall, by March 31, 2015, initiate a new
proceeding to conduct an affordable energy feasibility study for
communities identified pursuant to subdivision (a). The study shall
include analysis of the economic feasibility of the following
options:
   (1) Extending gas pipelines to the communities.
   (2) Increasing subsidies for electricity for individuals in those
communities.
   (3) Other alternatives that would increase access to affordable
energy that the commission deems appropriate.
   (c) The commission shall determine whether any of the options
analyzed in the study would increase access to affordable energy in
an economically viable manner. For these options, the commission
shall take appropriate action and determine appropriate funding
sources.  
  SEC. 2.    Section 783.5 is added to the Public
Utilities Code, to read:
   783.5.  (a) The commission shall develop a program by December 1,
2015, through an existing or new proceeding, to enable disadvantaged
communities in the San Joaquin Valley to finance the cost of
extending natural gas service within those communities.
   (b) The commission shall require a gas corporation that provides
natural gas service in the San Joaquin Valley to do the following:
   (1) Identify disadvantaged communities in the San Joaquin Valley
that do not have gas service.
   (2) Assess the cost of extending gas lines to disadvantaged
communities.
   (3) Work with disadvantaged communities and local agencies that
desire gas service to develop and implement a financing plan to
provide gas service to those disadvantaged communities.
   (c) The commission shall identify potential sources of funds
available for the program, including funds from ratepayers within
each disadvantaged community desiring gas service, funds generated
from the surcharge imposed on natural gas pursuant to Section 890, or
any other sources of funds that may be allocated to the program to
reduce the cost to disadvantaged communities of extending gas service
under the program.