BILL ANALYSIS �
AB 2672
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2672 (Perea) - As Amended: April 21, 2014
Policy Committee: Utilities and
Commerce Vote: 10-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Public Utilities Commission
(PUC) 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 to those communities. Specifically, this bill:
1)Authorizes the PUC to require gas corporations that provide
natural gas service in the San Joaquin Valley to:
a) Identify disadvantaged communities in the San Joaquin
Valley lacking gas service.
b) Assess the cost of extending gas lines to disadvantaged
communities.
c) Work with disadvantaged communities and local agencies
desiring gas service to develop and implement a financing
plan to provide gas service to those disadvantaged
communities.
1)Requires the PUC to identify a funding source for the program.
FISCAL EFFECT
Increased costs to the PUC of approximately $300,000 per year
for two years for staff resources necessary to carry out the
proceedings. The PUC is not currently holding any similar
proceedings and would have to open a new proceeding.
COMMENTS
1)Rationale. According to the author, without natural gas
AB 2672
Page 2
service, residents have to rely on alternative fuel sources
such as propane, electricity, or wood burning to heat and
power their homes. The author contends that these alternate
sources are expensive, less environmental friendly and may
expose residents to health and safety issues.
This bill focuses on identifying disadvantaged communities in
the San Joaquin Valley without natural gas service and
providing cost estimates and potential funding sources to
bring service to the communities.
2)PUC Proceeding. This bill is prescriptive and may prevent a
more robust cost analysis of alternatives by requiring the PUC
to develop the natural gas extension program. Further
information regarding the identification of who the rate
payers are and if they have the necessary infrastructure and
appliances in their homes to benefit from natural gas service
may result in better informed decisions. The author may wish
to modify the scope of the directed proceeding to ensure best
outcomes.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081