BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2672
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2672 (Perea)
          As Amended  May 27, 2014
          Majority vote 

           UTILITIES & COMMERCE              10-1               
          APPROPRIATIONS      12-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Bonilla,        |Ayes:|Gatto, Bocanegra,         |
          |     |Buchanan, Fong, Garcia,   |     |Bradford,                 |
          |     |Roger Hern�ndez, Mullin,  |     |Ian Calderon, Campos,     |
          |     |Quirk, Rendon, Skinner    |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jones                     |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the California Public Utilities Commission  
          (PUC) conduct a feasibility study to analyze options for  
          providing affordable energy service in low income regions within  
          the San Joaquin Valley and identify appropriate actions and  
          funding sources. Specifically,  this bill :  

          Requires gas utilities in the San Joaquin Valley to identify  
          disadvantaged communities that do not have natural gas service.

          Requires the PUC to initiate a new proceeding by March 31, 2015,  
          to conduct a feasibility study on the economics of expending  
          natural gas service to these communities, identifying  
          alternatives (such as increasing electricity subsidies or other  
          alternatives).

          Directs the PUC, if it determines that any of the options  
          achieves the intent of the bill, to take appropriate action and  
          determine appropriate funding sources.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, increased costs of up to $500,000 to fund the  
          necessary studies.

           COMMENTS  :   









                                                                  AB 2672
                                                                  Page  2


          1)Purpose:  According to the author, without natural gas  
            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.  

           2)Further information regarding whether natural gas service will  
            benefit disadvantaged communities or whether there are viable  
            and comparable or less-expensive alternatives is needed in  
            order to understand whether natural gas service is the best  
            choice for addressing low income customers who lack natural  
            gas service.  


          Analysis Prepared by  :    Brandon Gaytan / U. & C. / (916)  
          319-2083 


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