BILL ANALYSIS Ó SB 1441 Page 1 SENATE THIRD READING SB 1441 (Leno and Pavley) As Amended August 19, 2016 Majority vote SENATE VOTE: 28-11 -------------------------------------------------------------------- |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+-----------------------+---------------------| |Utilities |10-5 |Gatto, Burke, Eggman, |Patterson, Chávez, | | | | |Dahle, Hadley, | | | | |Obernolte | | | |Cristina Garcia, | | | | |Eduardo Garcia, Roger | | | | |Hernández, Quirk, | | | | |Santiago, Ting, | | | | |Williams | | | | | | | |----------------+-----+-----------------------+---------------------| |Appropriations |13-6 |Gonzalez, Bloom, |Bigelow, Daly, | | | |Bonilla, Bonta, |Gallagher, Jones, | | | |Calderon, Eggman, |Obernolte, Wagner | | | |Eduardo Garcia, | | | | |Holden, Quirk, | | | | |Santiago, Weber, Wood, | | | | |Chu | | SB 1441 Page 2 | | | | | | | | | | -------------------------------------------------------------------- SUMMARY: Prohibits, to the extent feasible, the California Public Utilities Commission (CPUC) from allowing gas corporations to seek or receive cost recovery from ratepayers for the value of natural gas lost to the atmosphere from certain natural gas facilities when establishing rates in an individual rulemaking proceeding or in general rate cases. This prohibition applies to the following facilities: 1)CPUC-regulated gas pipeline facilities; 2)Above-ground storage facilities; 3)Underground storage facilities; 4)Processing facilities; 5)Facilities used for the transportation of natural gas; and, SB 1441 Page 3 6)Facilities used for the delivery of natural gas. This bill does not apply to "natural gas lost to the atmosphere resulting from an act of God." FISCAL EFFECT: According to the Assembly Appropriations Committee, costs to the CPUC will be minor and absorbable. COMMENTS: 1)Purpose: According to the author, enough natural gas is lost each year to fuel six million homes. In the United States last year, this lost gas had the same negative impact on the climate as the annual carbon emissions of 117 million cars - roughly half the cars in the country. The author contends that preventing cost recovery from ratepayers of lost natural gas creates an added incentive to repair leaks to the maximum extent feasible. 2)Methane Emission Reduction: Methane is a potent greenhouse gas, with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year period. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Methane emissions result from unintentional or intentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases occur when there is a need to vent natural gas to reduce excess pressure on pipeline SB 1441 Page 4 infrastructure when such pressure presents a safety risk. Analysis Prepared by: Darion Johnston / U. & C. / (916) 319-2083 FN: 0004715