BILL NUMBER: SB 1301	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 7, 2016

INTRODUCED BY   Senator Hertzberg
    (   Coauthor:   Assembly Member  
Dodd   ) 

                        FEBRUARY 19, 2016

   An act to add Section 748.6 to the Public Utilities Code, relating
to natural gas.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1301, as amended, Hertzberg. Natural gas: greenhouse gas
allowance: allocation.
   Under the Public Utilities Act, the Public Utilities Commission
has regulatory jurisdiction over public utilities, including
electrical corporations and gas corporations. A violation of the
Public Utilities Act or any order, decision, rule, direction, demand,
or requirement of the commission is a crime. The California Global
Warming Solutions Act of 2006 and its implementing regulations
provide for a greenhouse gas emissions limit to be achieved through a
market-based compliance mechanism. That mechanism includes the
requirement that certain greenhouse gas producers acquire "allowances"
for their emissions. Those regulations specifically provide for the
direct allocation of greenhouse gas allowances to gas corporations.
   A decision of the commission requires the gas corporations to
return to certain customers the proceeds generated from the sale of
those greenhouse gas allowances as a bill credit in an equal,
non-volumetric manner, and to conduct outreach and education
activities to customers receiving the bill credit.
   The Public Utilities Act authorizes the commission to allocate 15%
of the revenues received by an electrical corporation as a result of
the auction of greenhouse gas allowances for clean energy and energy
efficiency projects established pursuant to statute that are
administered by electrical corporations or a qualified 3rd-party
administrator approved by the commission and requires the commission
to direct the balance of the revenues to be credited directly to the
residential, small business, and emissions-intensive trade-exposed
retail customers of the electrical corporations, as specified.
   This bill would  require   authorize 
the  commission, no later than June 1, 2017,  
commission  to require  up to  25% of revenues received
by a gas corporation as a result of the auction of greenhouse gas
allowances to be used for clean energy and energy efficiency projects
or programs approved by the commission, as specified. The bill would
require the commission to require each gas corporation to annually
report and post on its Internet Web site all expenditures of these
revenues and the quantified reductions in greenhouse gases from
projects or programs funded under these provisions. Because the
provisions of this bill require  or authorize  action by the
commission to implement its requirements, and a violation of these
commission-ordered requirements would be a crime, this bill would
impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 748.6 is added to the Public Utilities Code, to
read:
   748.6.  (a)  No later than June 1, 2017, the 
 The  commission  shall  may 
require  up to  25 percent of revenues, including any
accrued interest, received by a gas corporation as a result of the
direct allocation of greenhouse gas allowances to natural gas
suppliers pursuant to subdivision (f) of Section 95890 of Title 17 of
the California Code of Regulations to be used for clean energy and
energy efficiency projects or programs approved by the commission.
   (b) For purposes of subdivision (a):
   (1) A project or program funded under this section must be able to
quantify and report reductions in greenhouse gases.
   (2) "Clean energy" project or program may include any of the
following:
   (A) Support for the development, deployment, interconnection, or
use of pipeline biogas.
   (B) Support for the development, deployment, or use of alternative
transportation fuels.
   (C) Any other project or program that reduces or abates greenhouse
gases related to the use of fossil natural gas.
   (3) "Energy efficiency" project or program may include any project
or program that reduces fossil natural gas consumption through more
efficient appliances, heating, cooling, industrial use, or other end
uses.
   (4) Clean energy and energy efficiency projects or programs may
also include projects or programs of that type established pursuant
to statute that are administered by the gas corporation, the
commission, or a qualified third-party administrator approved by the
commission.
   (c) The commission shall require each gas corporation to annually
report and post on its Internet Web site all expenditures of these
revenues and the quantified reductions in greenhouse gases from
projects or programs funded under this section.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.