Amended in Assembly May 27, 2014

Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 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 amended, Perea. begin delete Gas: extension of service: end delete begin insert Access to energy: end insert disadvantaged begin delete communities. end delete begin insert communities: San Joaquin Valley. end insert

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 begin delete commission by December 1, 2015, 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. end delete begin insert commission to require a gas corporation that provides natural gas service in the San Joaquin Valley, by January 31, 2015, to identify disadvantaged communities in the San Joaquin Valley that do not have natural gas service. The bill would require the commission, by March 31, 2015, to initiate a new proceeding to conduct an affordable energy feasibility study for those communities. The bill would require the commission to determine whether any option analyzed in the study would increase access to affordable energy in an economically viable manner. For these options, the bill would require the commission to take appropriate action and to determine appropriate funding sources. end insert

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.  

The Legislature finds and declares the following:

(a) Many low-income communities throughout California’s San
Joaquin Valley lack access to natural gas lines.

(b) Increasing access to begin delete natural gas end delete begin insert affordable energy end insert can
improve the health, safety, and begin delete financial security end delete begin insert air quality end insert of
these communities.

begin delete

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

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 783.5 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 783.5. end insert   

(a) The commission shall require a gas corporation
that provides natural gas in the San Joaquin Valley, by January
31, 2015, to identify disadvantaged communities in the San Joaquin
Valley that do not have natural gas service.

(b) The commission shall, by March 31, 2015, initiate a new
proceeding to conduct an affordable energy feasibility study for
communities identified pursuant to subdivision (a). The study shall
include analysis of the economic feasibility of the following
options:

(1) Extending gas pipelines to the communities.

(2) Increasing subsidies for electricity for individuals in those
communities.

(3) Other alternatives that would increase access to affordable
energy that the commission deems appropriate.

(c) The commission shall determine whether any of the options
analyzed in the study would increase access to affordable energy
in an economically viable manner. For these options, the
commission shall take appropriate action and determine
appropriate funding sources.

end insert

begin delete

SEC. 2.  

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

783.5.  

(a) The commission shall develop a program by
December 1, 2015, 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.

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

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

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

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

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

end delete