BILL NUMBER: SB 1441	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 3, 2016
	AMENDED IN SENATE  MAY 31, 2016
	AMENDED IN SENATE  APRIL 25, 2016
	AMENDED IN SENATE  APRIL 7, 2016
	AMENDED IN SENATE  MARCH 28, 2016

INTRODUCED BY   Senators Leno and Pavley

                        FEBRUARY 19, 2016

   An act to amend Section 977 of the Public Utilities Code, relating
to natural gas.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1441, as amended, Leno. Natural gas: methane emissions.
   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.  Existing law
requires the commission, in order to achieve transparency and
accountability for rate revenues and best value for ratepayers, to
consider, among other things, providing revenues for all activities
identified and required by certain rules and procedures governing the
operation, maintenance, repair, and replacement of
commission-regulated gas pipeline facilities, including any
adjustment of allowance for lost and unaccounted for gas related to
actual leakage volumes. 
   This bill  would, in establishing rates for gas
corporations, prohibit the commission   would prohibit
the commission, in establishing rates for a gas corporation, 
from allowing  a  gas  corporations  
corporation  to seek or receive recovery from ratepayers for the
value of natural gas lost to the atmosphere  during the
extraction, production, storage, processing, transportation, and
delivery of the natural gas, as specified.   from
certain natural gas facilities under the control of the gas
corporation, as specified. 
   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.  Section 977 of the Public Utilities Code is amended to
read:
   977.   (a)    In order to achieve transparency
and accountability for rate revenues and best value for ratepayers,
and consistent with the commission's existing ratemaking procedures
and authority to establish just and reasonable rates, the commission
shall consider all of the following: 
   (a) 
    (   1)  Providing an adequate workforce to
achieve the objectives of reducing hazards and emissions from leaks,
including leak avoidance, reduction, and repair. 
   (b) (1) 
    (2)  Providing revenues for all activities identified
and required pursuant to Section 975, including any adjustment of
allowance for lost and unaccounted for gas related to actual leakage
volumes. 
   (2) In establishing rates for gas corporations, to the extent
feasible as determined by the commission in an individual rulemaking
proceeding or in general rate cases, the commission shall not allow
gas corporations to seek or receive recovery from ratepayers for the
value of natural gas lost to the atmosphere during the extraction,
production, storage, processing, transportation, and delivery of the
natural gas.  
   (c) 
    (3)  Providing guidance for treatment of expenditures as
being either an item of expense or a capital investment. 
   (d) 
    (4)  The impact on affordability of gas service for
vulnerable customers as a result of the incremental costs of
compliance with the adopted rules and procedures. 
   (b) (1) To the extent feasible as determined by the commission,
when establishing rates for a gas corporation in an individual
rulemaking proceeding or in a general rate case, the commission shall
not allow the gas corporation to seek or receive recovery from
ratepayers for the value of natural gas lost to the atmosphere from
any of the following natural gas facilities under the control of the
gas corporation:  
   (A) Commission-regulated gas pipeline facilities as defined in
Section 975.  
   (B) Above-ground storage facilities.  
   (C) Underground storage facilities.  
   (D) Processing facilities.  
   (E) Facilities used for the transportation of natural gas. 

   (F) Facilities used for the delivery of natural gas.  
   (2) Paragraph (1) does not apply to natural gas lost to the
atmosphere resulting from an act of God.