Bill Text: CA AB650 | 2013-2014 | Regular Session | Enrolled

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

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Bill Title: State government: general services: Natural Gas Services

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-07 - Chaptered by Secretary of State - Chapter 615, Statutes of 2013. [AB650 Detail]

Download: California-2013-AB650-Enrolled.html

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BILL NUMBER: AB 650	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 3, 2013
	PASSED THE ASSEMBLY  SEPTEMBER 6, 2013
	AMENDED IN SENATE  AUGUST 26, 2013
	AMENDED IN SENATE  AUGUST 15, 2013
	AMENDED IN SENATE  JUNE 19, 2013
	AMENDED IN SENATE  JUNE 4, 2013
	AMENDED IN ASSEMBLY  MAY 1, 2013
	AMENDED IN ASSEMBLY  MARCH 20, 2013

INTRODUCED BY   Assembly Member Nazarian

                        FEBRUARY 21, 2013

   An act to add Section 10299.1 to the Public Contract Code,
relating to state government, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 650, Nazarian. State government: general services: Natural Gas
Services Program.
   Existing law authorizes the Department of General Services to
contract with suppliers to obtain materials, supplies, equipment, and
services.
   This bill would require the director to operate the Natural Gas
Services Program, pursuant to which the Director of General Services
would make the services of the department with respect to the
acquisition of natural gas and related services available, under
agreed upon terms and conditions, to any city, county, city and
county, district, or other local governmental body, and to nonprofit
hospitals and educational institutions that expend public funds, and
would enter into interagency agreements for acquisition of natural
gas and related services, as defined.
   The bill would require agencies that are in the executive branch
of state government, except the Department of Water Resources, to use
the department's Natural Gas Services Program for noncore gas
purchases of natural gas. The bill would create the Department of
General Services Natural Gas Services Program Fund, and would
continuously appropriate that fund to the department for purposes of
operating the Natural Gas Services Program. The bill would state that
funding for the department's administrative costs in overseeing the
program is to be provided for in the annual Budget Act.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10299.1 is added to the Public Contract Code,
to read:
   10299.1.  (a) Notwithstanding any other law, the director shall
operate the Natural Gas Services Program to consolidate and address
the needs of multiple state agencies for the procurement of natural
gas and related services.
   (b) Procurement of natural gas and related services is vital to
public sector facilities in California and, due to the volumes and
costs involved, this section authorizes the following:
   (1) The director shall make the services of the department with
respect to the acquisition of natural gas and related services
available, under agreed upon terms and conditions, to any city,
county, city and county, district, or other local governmental body,
and to any nonprofit hospital or educational institution that expends
public funds.
   (2) The department is authorized to enter into interagency
agreements with the entities listed in paragraph (1) for the
acquisition of natural gas and related services. The department may
enter into contracts, master agreements, multiple award schedules,
cooperative agreements, agreements with entities outside the state,
and other types of agreements that leverage the state's buying power
through the use of a competitive bidding process. The state shall not
incur financial responsibility in connection with the contracting of
nonstate agencies under this section.
   (3) The department may buy, sell, exchange, transfer, or otherwise
dispose of natural gas acquired by the department pursuant to this
section, and may recover the department's acquisition and other costs
to operate the program through customer charges or fees.
   (4) The department may enter into gas purchase transactions for a
term longer than five years, if specifically approved by the
director.
   (5) The program shall adjust to changes in customer requirements
and market conditions and create and manage an ongoing pool of gas
suppliers.
   (6) The department is authorized to provide additional services to
customers related to the environmental aspects of energy use and the
requirements related to greenhouse gas regulations, renewable energy
requirements, and similar programs and requirements.
   (c) Agencies that are in the executive branch of the state
government, except the Department of Water Resources, shall use the
department's Natural Gas Services Program for noncore gas purchases
of natural gas to ensure maximum participation resulting in the best
discounts and prices for the commodity. The director may allow
exemptions to this requirement.
   (d) For purposes of this section, "natural gas" includes, but is
not limited to, natural gas, methane, biomethane, compressed natural
gas, liquefied natural gas, and other energy commodity that is
similar to natural gas, and related services, including, but not
limited to, gas storage, gas transportation, and forward purchases of
natural gas.
   (e) During any period in which a Budget Act has not been approved,
the department shall continue to receive payment transfers from
agencies that are not in the executive branch of the state government
and agencies that are in the executive branch of state government
that are able to pay because they operate with funds that are
continuously appropriated.
   (f) The department is authorized to charge, collect, and hold
funds from a customer that voluntarily requests prepaid long-term
natural gas supplies, for a period not to exceed 20 years.
   (g) The Department of General Services Natural Gas Services
Program Fund is hereby established in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the fund is
hereby continuously appropriated to the department without regard to
fiscal year, for the purposes of operating the Natural Gas Services
Program.
   (1) All revenues payable to the department for natural gas and
related services shall be deposited in this fund. Any payments from
this fund shall only be made for those purposes described in and
consistent with this section.
   (2) The Natural Gas Services Program's customer fee revenues
cannot be shifted or borrowed from the fund.
   (3) If at the end of any fiscal year, there are unexpended
revenues, those revenues shall be retained in the fund and reserved
for future Natural Gas Services Program expenses.
   (h) Funding for the costs incurred by the department in
administering this section shall be provided for in the annual Budget
Act.