BILL NUMBER: SB 1441	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 19, 2016
	AMENDED IN ASSEMBLY  AUGUST 16, 2016
	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 prohibit the commission,  
bill,  on or after January 1, 2019,  when establishing
rates for a gas corporation,   to the extent feasible
and in appropriate proceedings, as determined by the commission,
would prohi   bit the commission  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 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:
   (1) Providing an adequate workforce to achieve the objectives of
reducing hazards and emissions from leaks, including leak avoidance,
reduction, and repair.
   (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.
   (3) Providing guidance for treatment of expenditures as being
either an item of expense or a capital investment.
   (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   On or after January 1, 2019, to
 the extent feasible  and in appropriate proceedings, 
as determined by the commission,  on or after January 1,
2019, 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.