California Legislature—2013–14 Regular Session

Assembly BillNo. 2672


Introduced by Assembly Member Perea

February 21, 2014


An act to add Section 783.5 to the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2672, as introduced, Perea. Gas: extension of service: disadvantaged communities.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical and 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 to establish various programs that provide assistance to low-income electric and gas customers.

This bill would require the commission to develop a program, through an existing or new proceeding, to enable disadvantaged communities in the San Joaquin Valley to finance the cost of extending natural gas service within those communities. The bill would impose specified requirements on a gas corporation that provides natural gas service in the San Joaquin Valley in connection with the program. The bill would require the commission to identify potential sources of funds that may be allocated to the program to reduce the cost to disadvantaged communities of extending gas service under the program.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature finds and declares the following:

2(a) Many low-income communities throughout California lack
3access to natural gas lines.

4(b) Increasing access to natural gas can improve the health,
5safety, and financial security of these communities.

6(c) Increasing access to natural gas has the potential of
7improving energy affordability and air quality.

8

SEC. 2.  

Section 783.5 is added to the Public Utilities Code, to
9read:

10

783.5.  

(a) The commission shall develop a program, through
11an existing or new proceeding, to enable disadvantaged
12communities in the San Joaquin Valley to finance the cost of
13extending natural gas service within those communities.

14(b) The commission shall require a gas corporation that provides
15natural gas service in the San Joaquin Valley to do the following:

16(1) Identify disadvantaged communities in the San Joaquin
17Valley that do not have gas service.

18(2) Assess the cost of extending gas lines to disadvantaged
19communities.

20(3) Work with disadvantaged communities and local agencies
21that desire gas service to develop and implement a financing plan
22to provide gas service to those disadvantaged communities.

23(c) The commission shall identify potential sources of funds
24available for the program, including funds from ratepayers within
25each disadvantaged community desiring gas service, funds
26generated from the surcharge imposed on natural gas pursuant to
27Section 890, or any other sources of funds that may be allocated
28to the program to reduce the cost to disadvantaged communities
29of extending gas service under the program.



O

    99