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
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|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
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| | | | |
| | | | |
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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,
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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
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infrastructure when such pressure presents a safety risk.
Analysis Prepared by:
Darion Johnston / U. & C. / (916) 319-2083 FN:
0004715