BILL ANALYSIS Ó AB 2672 Page 1 ASSEMBLY THIRD READING AB 2672 (Perea) As Amended May 27, 2014 Majority vote UTILITIES & COMMERCE 10-1 APPROPRIATIONS 12-0 ----------------------------------------------------------------- |Ayes:|Bradford, Bonilla, |Ayes:|Gatto, Bocanegra, | | |Buchanan, Fong, Garcia, | |Bradford, | | |Roger Hernández, Mullin, | |Ian Calderon, Campos, | | |Quirk, Rendon, Skinner | |Eggman, Gomez, Holden, | | | | |Pan, Quirk, | | | | |Ridley-Thomas, Weber | |-----+--------------------------+-----+--------------------------| |Nays:|Jones | | | | | | | | ----------------------------------------------------------------- SUMMARY : Requires the California Public Utilities Commission (PUC) conduct a feasibility study to analyze options for providing affordable energy service in low income regions within the San Joaquin Valley and identify appropriate actions and funding sources. Specifically, this bill : Requires gas utilities in the San Joaquin Valley to identify disadvantaged communities that do not have natural gas service. Requires the PUC to initiate a new proceeding by March 31, 2015, to conduct a feasibility study on the economics of expending natural gas service to these communities, identifying alternatives (such as increasing electricity subsidies or other alternatives). Directs the PUC, if it determines that any of the options achieves the intent of the bill, to take appropriate action and determine appropriate funding sources. FISCAL EFFECT : According to the Assembly Appropriations Committee, increased costs of up to $500,000 to fund the necessary studies. COMMENTS : AB 2672 Page 2 1)Purpose: According to the author, without natural gas service, residents have to rely on alternative fuel sources such as propane, electricity, or wood burning to heat and power their homes. The author contends that these alternate sources are expensive, less environmental friendly and may expose residents to health and safety issues. 2)Further information regarding whether natural gas service will benefit disadvantaged communities or whether there are viable and comparable or less-expensive alternatives is needed in order to understand whether natural gas service is the best choice for addressing low income customers who lack natural gas service. Analysis Prepared by : Brandon Gaytan / U. & C. / (916) 319-2083 FN: 0003740