Bill Text: CA AB1257 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Energy: State Energy Resources Conservation and

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-11 - Chaptered by Secretary of State - Chapter 749, Statutes of 2013. [AB1257 Detail]

Download: California-2013-AB1257-Amended.html

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BILL NUMBER: AB 1257	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 6, 2013

INTRODUCED BY   Assembly Member Bocanegra

                        FEBRUARY 22, 2013

   An act to add  Chapter 3.5 (commencing with Section 25250)
to Division 15 of   Section 25328 to  the Public
Resources Code, relating to natural gas.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1257, as amended, Bocanegra. Energy: State Energy Resources
Conservation and Development Commission: natural gas.
   The Warren-Alquist State Energy Resources Conservation and
Development Act  (act)  establishes the State Energy
Resources Conservation and Development Commission  (Energy
Commission)   , known as the Energy Commission, 
and requires the commission to prepare a biennial integrated energy
policy report containing specified information related to major
energy trends and issues facing the state, as well as a biennial
energy policy review. The act requires the commission to certify
sufficient sites and related facilities that are required to provide
a supply of electricity sufficient to accommodate projected demand
for power statewide.
   This bill would  enact the Natural Gas Act and would
 require the Energy Commission,  on or before January 1,
2015, and  every 4 years  thereafter  , to prepare and
submit to the  Legislature   Governor  a
report containing specified information identifying strategies to
maximize the benefits obtained from natural gas as an energy source,
as specified. The bill would further require the Governor to review
that report by a specific date and to report specific agreement or
disagreement with, or modifications to, the report to the
Legislature,  and  would declare the modified
version of the report the natural gas policy of the state  , and
would require the Energy Commission to incorporate the report into
the subsequent biennial integrated energy policy report  .
 This bill would also make legislative findings and
declarations including, among other things, that it is the policy of
the state to reduce greenhouse gas emissions and that an efficient
and effective strategy for the use of natural gas has potential for
helping to meet these objectives. 
   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.    Section 25328 is added to the 
 Public Resources Code   , to read:  
   25328.  (a) On or before January 1, 2015, and every four years
thereafter, notwithstanding Section 10231.5 of the Government Code,
the commission shall prepare and submit to the Legislature a report
that identifies strategies to maximize the benefits obtained from
natural gas, including biomethane for purposes of this section, as an
energy source, helping the state realize the environmental and cost
benefits afforded by natural gas. As part of this report, the
commission, at a minimum, shall identify strategies and options for
each of the following:
   (1) Making the best use of natural gas as a transportation fuel,
including for movement of freight, vessels, mass transit, and other
commercial and passenger vehicle use and identifying methods to
increase the development of natural gas refueling infrastructure.
   (2) Identifying the role of natural gas-fired generation as part
of a resource portfolio, including, but not limited to, combined heat
and power, and the impact of that role on meeting greenhouse gas
targets.
   (3) Assessing the potential of natural gas as a low-emission
resource, including potential zero and near-zero greenhouse gas
emissions, natural gas, and biogas options, taking into account
impact on electric system operations and transportation systems.
   (4) Optimizing natural gas as a flexible and convenient end use
energy source, including efficient use for heating, water heating,
cooling, cooking, engine operation, and other end uses, and the
optimization of appliances for these uses.
   (5) Analyzing effective methods and strategies by which the
electric and natural gas industries can facilitate implementation of
any of the strategies identified in the study.
   (6) Determining the extent to which a long-term policy is needed
to ensure adequate infrastructure and storage that addresses both
demand and climate change, and developing strategies for pursuing
additional infrastructure development and programs to maintain or
enhance pipeline and system integrity and reliability, including
increased natural gas storage. In developing those strategies, the
commission shall consider needed policies to protect against system
capacity constraints, minimize system leakage and related emissions,
mitigate investment risk associated with the long term investment in
infrastructure in an evolving energy market, and identify factors
that could limit the ability to receive maximum benefits from natural
gas as an energy resource.
   (7) Determining the role that natural gas can play in the
development of zero net energy buildings, meeting statewide renewable
energy, energy efficiency, and demand reduction goals.
   (8) Optimizing the methods by which the pursuit of these
strategies can facilitate job development in the private sector,
particularly in distressed economic areas and disadvantaged
communities.
   (9) Optimizing the methods by which state and federal fiscal
policy can facilitate any of the proposed strategies.
   (10) Evaluating the incremental beneficial and adverse economic
cost and environmental impacts of proposed strategies, including
lifecycle greenhouse gas emissions from production, transportation,
and use of natural gas based on authoritative, peer-reviewed, and
science-based analysis, or as determined by the State Air Resources
Board.
   (b) In developing the report described in subdivision (a), the
commission shall include the findings of the current integrated
energy policy report required pursuant to Section 25302 and provide
an opportunity for public comment consistent with the commission's
procedures. The commission shall receive and address information from
the public, including entities within the natural gas production and
delivery chain, end use customers, environmental experts, and
federal policymakers. Where the commission does not accept relevant
recommendations of such interested parties, it shall provide an
explanation and any supporting factual basis.
   (c) In developing the report described in subdivision (a), the
commission shall consult with the Public Utilities Commission, the
California Independent System Operator, the State Air Resources
Board, the Department of Oil, Gas, and Geothermal Resources, and the
Department of Conservation to obtain relevant input. The report is
intended to assist in establishing state policy and does not
independently change any statute, regulation, or regulatory decision.

   (d) Upon adoption of the report described in subdivision (a) by
the commission, the commission shall transmit the report to the
Governor who shall review the report and shall, on or before 180 days
after receipt of the report, report further to the Legislature the
Governor's agreement or disagreement with, and recommended deletions,
additions, and modifications to, any policy recommendations
contained in that report. The report, as modified by the Governor,
shall thereafter comprise the natural gas policy of the State of
California, and shall be incorporated into the subsequent biennial
integrated energy policy report required pursuant to Section 25302.
   (e) The report to be submitted pursuant to subdivisions (a) and
(d) shall be submitted in compliance with Section 9795 of the
Government Code.  
  SECTION 1.    Chapter 3.5 (commencing with Section
25250) is added to Division 15 of the Public Resources Code, to
read:
      CHAPTER 3.5.  NATURAL GAS ACT



      Article 1.  General Provisions


   25250.  The legislature finds and declares all of the following:
   (a) It is the policy of the state to reduce greenhouse gas
emissions and emissions of criteria pollutants while minimizing the
potential cost of these efforts on the citizens of the state. State
law specifically requires that greenhouse gas emissions targets be
achieved "in a manner that minimizes costs and maximizes benefits for
California's economy."
   (b) A June 2011 study by the Massachusetts Institute of Technology
identified natural gas as "one of the most cost-effective means by
which to maintain energy supplies while reducing CO2 emissions." The
MIT study found that "the current supply outlook for natural gas will
contribute to greater competitiveness of U.S. manufacturing, while
the use of more efficient technologies could offset increases in
demand and provide cost-effective compliance with emerging
environmental requirements."
   (c) In April 2012, the President of the United States issued an
executive order stating, among other things, that natural gas as an
energy source "creates jobs and provides economic benefits to the
entire domestic production supply chain, as well as to chemical and
other manufacturers, who benefit from lower feedstock and energy
costs. By helping to power our transportation system, greater use of
natural gas can also reduce our dependence on oil." The President
concluded, "For these reasons, it is vital that we take full
advantage of our natural gas resources, while giving American
families and communities confidence that natural and cultural
resources, air and water quality, and public health and safety will
not be compromised."
   (d) An efficient and effective strategy for the use of natural gas
has potential for helping to meet the objectives described in
subdivision (a).
   (e) Natural gas represents a flexible energy supply source for,
among other things, heating, water heating, cooling, cooking, engine
operation, and electric generation and provides a valuable complement
to the development of renewable generation sources, particularly
intermittent generating sources.
   (f) Natural gas represents an affordable and flexible supply
source for transportation purposes, including both commercial and
residential uses as a substitute for diesel and gasoline-fueled
vehicles. In developing the State Alternative Fuels Plan, as part of
implementation of Assembly Bill 1007, (Ch. 371, Stats. 2005), the
commission and the State Air Resources Board assessed natural gas as
part of a broad portfolio of alternative fuels the state should be
pursuing, finding, among other things, that natural gas as a
transportation fuel represented the most cost-effective alternative
transportation fuel option for reducing greenhouse gas emissions
through a study period extending to 2050.
   (g) California does not currently have a long-term strategy to
maximize the benefits of natural gas as part of the state's portfolio
of energy sources in a low carbon future.
   25251.  (a) By January 1, 2015, and every four years thereafter,
notwithstanding section 10231.5, of the Government Code, the
commission shall prepare and submit to the Legislature a report that
identifies strategies to maximize the benefits obtained from natural
gas as an energy source, helping the state realize the environmental
and cost benefits afforded by natural gas. As part of this report,
the commission, at minimum, shall identify strategies and options for
each of the following:
   (1) Making the best use of natural gas as a transportation fuel,
including for movement of freight, vessels, mass transit, and other
commercial and passenger vehicle use and identifying methods to
increase the development of natural gas refueling infrastructure.
   (2) Determining the optimal role of natural gas-fired generation
as part of a resource portfolio, including, but not limited to,
combined heat and power, and the impact of that role on meeting
greenhouse gas targets.
   (3) Taking the best advantage of natural gas as a low-emission and
renewable resource, including potential zero and near-zero
greenhouse gas emissions, natural gas, and biogas options, taking
into account impact on electric system operations.
   (4) Optimizing the advantage of natural gas as a flexible and
convenient end use energy source, including the efficient use of
natural gas for heating, water heating, cooling, cooking, engine
operation, and other end uses, and the optimization of appliances for
these uses.
   (5) Identifying methods by which gas corporations can facilitate
implementation of any of the strategies identified in the study.
   (6) Determining the extent to which a long-term policy is needed
to ensure adequate infrastructure and storage, and developing
strategies for pursuing additional infrastructure development to
maintain or enhance pipeline and system reliability, including
increased natural gas storage. In developing those strategies, the
commission shall consider needed policies to protect against system
capacity constraints, mitigate investment risk associated with the
long term investment in infrastructure in an evolving energy market,
and identify factors that could limit the ability to receive maximum
benefits from natural gas as an energy resource.
   (7) Determining the role that natural gas can play in the
development of zero net energy buildings.
   (8) Optimizing the methods by which the pursuit of these
strategies can facilitate jobs development in the private sector,
particularly in distressed areas.
   (9) Optimizing the methods by which state and federal fiscal
policy can facilitate any of the proposed strategies.
   (b) In developing the report described in subdivision (a), the
commission shall provide an opportunity for interested parties to
offer relevant input. The commission shall receive and address
information from relevant individuals and groups, including entities
within the natural gas production and delivery chain, end use
customers, environmental experts, and federal policymakers. Where the
commission does not accept relevant recommendations of such
interested parties, it shall provide an explanation and any
supporting factual basis.
   (c) In developing the report described in subdivision (a), the
commission shall consult with the Public Utilities Commission, the
State Water Resources Control Board, the State Air Resources Board,
the Department of Oil, Gas, and Geothermal Resources, and the
Department of Conservation to obtain relevant input.
   (d) The Governor shall review the report described in subdivision
(a) and shall, on or before 180 days after receipt of the report,
report further to the Legislature the Governor's agreement or
disagreement with, and recommended deletions, additions, and
modifications to, the policy recommendations contained in that
report. The report, as modified by the Governor, shall thereafter
comprise the natural gas policy of the State of California.
   (e) The report to be submitted pursuant to subdivisions (a) and
(d) shall be submitted in compliance with Section 9795 of the
Government Code.