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.
Thisbegin delete bill would prohibit the commission,end deletebegin insert
bill,end insert
on or after January 1, 2019,begin delete when establishing rates for a gas corporation,end deletebegin insert to the extent feasible and in appropriate proceedings, as determined by the commission, would prohibit the commissionend insert from allowing a gas corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere 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 977 of the Public Utilities Code is
2amended to read:
(a) In order to achieve transparency and accountability
4for rate revenues and best value for ratepayers, and consistent with
5the commission’s existing ratemaking procedures and authority
6to establish just and reasonable rates, the commission shall consider
7all of the following:
8(1) Providing an adequate workforce to achieve the objectives
9of reducing hazards and emissions from leaks, including leak
10avoidance, reduction, and repair.
11(2) Providing revenues for all activities identified and required
12pursuant to Section 975, including any adjustment of allowance
13for lost and unaccounted for gas related to actual leakage volumes.
14(3) Providing guidance for treatment of expenditures as being
15either an item of expense or a capital investment.
16(4) The impact on affordability of gas service for vulnerable
17customers as a result of the incremental costs of compliance with
18the adopted rules and procedures.
19(b) (1) begin deleteTo end deletebegin insertOn or after January 1, 2019, to end insertthe extent feasible
20begin insert and in appropriate proceedings,end insert as determined by the commission,
21begin delete on or after January 1, 2019, when establishing rates for a gas
the commission shall not allow the gas corporation to
22corporation in an individual rulemaking proceeding or in a general
23rate case,end delete
24seek or receive recovery from ratepayers for the value of natural
25gas lost to the atmosphere from any of the following natural gas
26facilities under the control of the gas corporation:
P3 1(A) Commission-regulated gas pipeline facilities as defined in
2Section 975.
3(B) Above-ground storage facilities.
4(C) Underground storage facilities.
5(D) Processing facilities.
6(E) Facilities used for the transportation of natural gas.
7(F) Facilities used for the delivery of natural gas.
8(2) Paragraph (1) does not apply to natural gas lost to the
9atmosphere resulting from an act of God.
O
92