Amended in Senate August 20, 2014

Amended in Senate June 30, 2014

Amended in Assembly May 27, 2014

Amended in Assembly April 21, 2014

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 amended, Perea. Access to energy: disadvantaged communities: San Joaquin Valley.

begin delete

Under

end delete

begin insert(1)end insertbegin insertend insertbegin insertUnderend insert 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 thebegin delete commission to require a gas corporation that provides natural gas service in the San Joaquin Valley to identify by January 31, 2015, disadvantaged communities in the San Joaquin Valley that do not have natural gas service. The bill would require theend delete commission, by March 31, 2015, to initiate a new proceeding tobegin delete 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 deletebegin insert identify disadvantaged communities in the San Joaquin Valley meeting specified requirements and to analyze economically feasible options to increase access to affordable energy in those disadvantaged communities. The bill also would require the commission to determine whether the options analyzed would increase access to affordable energy to those disadvantaged communities in a cost-effective manner. The bill would require the commission, for those options, to take appropriate action and determine appropriate funding sources.end insert

begin insert

(2) This bill would make legislative findings and declarations as to the necessity of a special statute for the San Joaquin Valley.

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:

P2    1

SECTION 1.  

The Legislature finds and declares the following:

2(a) Many low-income communities throughout California’s San
3Joaquin Valley lack access to natural gas lines.

4(b) Increasing access to affordable energy can improve the
5health, safety, and air quality of these communities.

6

SEC. 2.  

Section 783.5 is added to the Public Utilities Code, to
7read:

8

783.5.  

(a) Forbegin delete theend delete purposes of this section, the following terms
9have the following meanings:

10(1) “Disadvantaged community” meansbegin delete an area of theend deletebegin insert aend insert San
11Joaquin Valleybegin delete in which a high concentration of low-income
12customers of an electrical corporation are enrolled in the CARE
13program pursuant to Section 739.1.end delete
begin insert community that meets all of
14the following criteria:end insert

begin insert

15(A) At least 25 percent of residential households with electrical
16service are enrolled in the CARE program pursuant to Section
17739.1.

end insert
begin insert

18(B) Has a population greater than 100 persons within its
19geographic boundaries as identified by the most recent United
20States Census or a community survey.

end insert
begin insert

P3    1(C) Has geographic boundaries no farther than seven miles
2from the nearest natural gas pipeline operated by a gas
3corporation.

end insert

4(2) “San Joaquin Valley” means the counties of Fresno,begin insert Kern,end insert
5 Kings, Madera,begin delete Tulare,end delete Merced,begin insert San Joaquin,end insert Stanislaus,begin delete San
6Joaquin, and Kern.end delete
begin insert and Tulare.end insert

begin delete

7(b) The commission shall require a gas corporation that provides
8natural gas in the San Joaquin Valley to identify by January 31,
92015, disadvantaged communities that do not have natural gas
10service.

end delete
begin delete

11(c) The

end delete

12begin insert(b)end insertbegin insertend insertbegin insertNo later than March 31, 2015, theend insert commissionbegin delete shall, by
13March 31, 2015,end delete
begin insert shallend insert initiate a new proceeding tobegin delete conduct an
14affordable energy feasibility study for communities identified
15pursuant to subdivision (b). The study shall include analysis of the
16economic feasibilityend delete
begin insert do allend insert of thebegin delete following options:end deletebegin insert following:end insert

begin insert

17(1) Identify disadvantaged communities based on the criteria
18specified in subdivision (a).

end insert
begin insert

19(2) Analyze the economic feasibility of the following options:

end insert
begin delete

20(1)

end delete

21begin insert(A)end insert Extendingbegin insert naturalend insert gas pipelines tobegin delete theend deletebegin insert those disadvantagedend insert
22 communities.

begin delete

23(2)

end delete

24begin insert(B)end insert Increasing subsidies for electricity forbegin delete individualsend deletebegin insert residential
25customersend insert
in thosebegin insert disadvantagedend insert communities.

begin delete

26(3)

end delete

27begin insert(C)end insert Other alternatives that would increase access to affordable
28energybegin insert in those disadvantaged communitiesend insert that the commission
29deems appropriate.

begin delete

30(d)

end delete

31begin insert(c)end insert The commission shall determine whether any of the options
32analyzed in thebegin delete studyend deletebegin insert proceedingend insert would increase access to
33affordable energy inbegin delete an economically viableend deletebegin insert a cost-effectiveend insert
34 manner. For these options, the commission shall take appropriate
35action and determine appropriate funding sources.

36begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The Legislature finds and declares that a special law
37is necessary and that a general law cannot be made applicable
38within the meaning of Section 16 of Article IV of the California
39Constitution because of the unique circumstance that the San
40Joaquin Valley is home to many communities that lack access to
P4    1natural gas service and it is necessary to ensure more affordable
2and cleaner alternatives are available.

end insert


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