SB 705 Senate Bill - INTRODUCED

BILL NUMBER: SB 705	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Leno

                        FEBRUARY 18, 2011

   An act to amend Sections 328 and 328.2 of, and to amend the
heading of Chapter 2.2 (commencing with Section 328) of Part 1 of
Division 1 of, the Public Utilities Code, relating to natural gas.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 705, as introduced, Leno. Natural gas: service and safety.
   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. The Public Utilities Act authorizes
the commission to ascertain and fix just and reasonable standards,
classifications, regulations, practices, measurements, or services to
be furnished, imposed, observed, and followed by specified public
utilities, including gas corporations.
   This bill would require each gas corporation that provides basic
gas service to develop and implement a policy for the safe operation
and maintenance of its gas plant, as defined, sufficient to prevent
accidents, explosions, fires, and dangerous conditions, and to
protect the public and its employees. The bill would require that the
policy have priority over cost minimization considerations and be
consistent with best practices in the gas industry and with federal
pipeline safety statutes and regulations. The bill would require the
commission to approve or revise and improve the policy by June 30,
2012. The bill would require that all revenues received by the gas
corporation that are authorized by the commission for service and
safety purposes, in furtherance of the policy, be expended by the gas
corporation only for the purposes authorized by the commission. The
bill would require the commission to authorize a gas corporation to
recover sufficient revenues and employee staffing to provide for
prompt provision of service consistent with the policy in its
distribution rate.
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The heading of Chapter 2.2 (commencing with Section
328) of Part 1 of Division 1 of the Public Utilities Code is amended
to read:
      CHAPTER 2.2.  NATURAL GAS  RESTRUCTURING  
SAFETY AND SERVICE 


  SEC. 2.  Section 328 of the Public Utilities Code is amended to
read:
   328.  The Legislature finds and declares  both 
 all  of the following:
   (a) In order to ensure that all core customers of a gas
corporation continue to receive safe basic gas service  in a
competitive market  , each existing gas corporation 
should  shall  continue to provide this essential
service. 
   (b) (1) Each gas corporation that provides basic gas service shall
develop and implement a policy for the safe operation and
maintenance of its gas plant sufficient to prevent accidents,
explosions, fires, and dangerous conditions, and to protect the
public and its employees. The policy shall have priority over cost
minimization considerations and shall be consistent with best
practices in the gas industry and with federal pipeline safety
statutes (Chapter 601 (commencing with Section 60101) of Subtitle
VIII of Title 49 of the United States Code) and the regulations
adopted by the United States Department of Transportation pursuant to
those statutes.  
   (2) The commission shall approve or revise and approve the policy
developed and implemented by each gas corporation pursuant to
paragraph (1) by June 30, 2012.  
   (b) 
    (c)   (1)     No 
 A  customer  should have   shall not
be required  to pay separate fees for utilizing services that
protect public or customer safety. 
   (2) All revenues received by the gas corporation that are
authorized by the commission for service and safety purposes, in
furtherance of the policy developed and implemented by the gas
corporation and approved by the commission pursuant to subdivision
(b), shall be expended by the gas corporation only for the purposes
authorized by the commission.  
   (d) The commission and gas corporation shall provide opportunities
for full and on-going participation by public utility employees in
the development and implementation of service and safety policy, with
the objective of developing an industrywide culture of safety that
will prevent accidents, explosions, fires, and dangerous conditions
for the protection of the public and gas corporation employees. 

  SEC. 3.  Section 328.2 of the Public Utilities Code is amended to
read:
   328.2.   (a)    The commission shall require
each gas corporation to provide bundled basic gas service to all core
customers in its service territory unless the customer chooses or
contracts to have natural gas purchased and supplied by another
entity.  A 
    (b)     A  public utility gas
corporation shall continue to be the exclusive provider of revenue
cycle services to all customers in its service territory, except that
an entity purchasing and supplying natural gas under the commission'
s existing core aggregation program may perform billing and
collection services for its customers under the same terms as
currently authorized by the commission, and except that a supplier of
natural gas to noncore customers may perform billing and collection
for natural gas supply for its customers.  The 
    (c)    The  gas corporation shall
continue to calculate its charges for services provided by that
corporation. If the commission establishes credits to be provided by
the gas corporation to core aggregation or noncore customers who
obtain billing or collection services from entities other than the
gas corporation, the credit shall be equal to the billing and
collection services costs actually avoided by the gas corporation.
 The 
    (d)     The  commission shall require
the distribution rate to continue to include after-meter services
 and shall authorize sufficient revenues and employee staffing to
provide for prompt provision of these services to the public,
consistent with the policy  developed and implemented by the
gas corporation and approved by the commission pursuant to
subdivision (b) of Section 382  .
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.