SB 1441, as introduced, Leno. Natural gas: vented and fugitive emissions.
(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the board to adopt greenhouse gas emission limits and emission reduction measures by regulation, and authorizes the state board to include the use of market-based compliance mechanisms in its implementing regulations to achieve those emissions goals.
This bill would require the state board, in regulations implementing a market-based compliance mechanism, to include vented emissions and fugitive emissions of natural gas as counting against the compliance obligation of certain covered natural-gas-related entities under the mechanism.
(2) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including 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.
This bill would, in establishing rates for gas corporations, prohibit the commission from considering systemic natural gas losses in the form of vented or fugitive emissions occurring during the injection, storage, transmission, or distribution of the natural gas.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
In enacting this act, it is the intent of the
2Legislature to create incentives to reduce or eliminate vented
3emissions and fugitive emissions of natural gas.
Section 38572 is added to the Health and Safety Code,
5to read:
(a) For purposes of this section, the following
7definitions apply:
8(1) “Fugitive emissions” has the same meaning as set forth in
9Section 39023.3.
10(2) “Vented emissions” means intentional or designed releases
11of natural gas or hydrocarbon gas, not including stationary
12combustion flue gas, including process designed flow to the
13atmosphere through seals or vent pipes, equipment blowdown for
14maintenance, and direct venting of gas used to power equipment,
15such as pneumatic devices.
16(b) In regulations implementing a market-based compliance
17mechanism pursuant to this part, the state board shall include
18
vented or fugitive emissions of natural gas as counting against the
19compliance obligation of covered entities engaged in the extraction,
20distribution, or transmission of natural gas under the mechanism.
Section 747.2 is added to the Public Utilities Code, to
22read:
(a) For purposes of this section, the following
24definitions apply:
25(1) “Fugitive emissions” has the same meaning as set forth in
26Section 39023.3 of the Health and Safety Code.
27(2) “Vented emissions” means intentional or designed releases
28of natural gas or hydrocarbon gas, not including stationary
29combustion flue gas, including process designed flow to the
30atmosphere through seals or vent pipes, equipment blowdown for
31maintenance, and direct venting of gas used to power equipment,
32such as pneumatic devices.
33(b) In establishing rates for gas corporations, the commission
34shall not consider the
systemic natural gas losses in the form of
P3 1fugitive or vented emissions occurring during the injection, storage,
2transmission, or distribution of the natural gas.
3(c) (1) This section does not prohibit gas corporations from
4using ratepayer funds to repair systemic natural gas leaks or to
5improve industry practices to reduce or eliminate vented or fugitive
6emissions.
7(2) This section does not prohibit gas corporations from
8recovering their costs incurred in compliance with regulations
9adopted pursuant to Section 38572 of the Health and Safety Code.
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