Bill Text: CA SB527 | 2023-2024 | Regular Session | Amended
Bill Title: Neighborhood Decarbonization Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB527 Detail]
Download: California-2023-SB527-Amended.html
Amended
IN
Senate
May 03, 2023 |
Amended
IN
Senate
March 22, 2023 |
Introduced by Senator Min |
February 14, 2023 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
SEC. 2.
Section 451.6 is added to the Public Utilities Code, to read:451.6.
(a) Notwithstanding any other law, a gas corporation may cease providing service in an area within its service territory where a pilot project authorized under the Neighborhood Decarbonization Program (Chapter 8.8 (commencing with Section 1650)) has been implemented, if the commission determines that adequate substitute energy service is reasonably available to support the energy end use of affected gas corporation(b)A gas corporation shall be authorized to fully recover the undepreciated costs of any gas plant or asset, including the cost to retire the gas plant or asset, if full cost recovery has not been achieved for the gas plant or asset that is decommissioned.
(c)(1)The commission, in a new or existing proceeding, shall develop the roles, responsibilities, timelines, and processes for determining whether gas service may be discontinued to one or more gas customers as a part of the Neighborhood Decarbonization Program to promote decarbonization because adequate substitute energy service is reasonably available to support the energy end use of affected gas corporation customers.
(2)
(d)Upon termination of the Neighborhood Decarbonization Program pursuant to Section 1654, the commission may terminate, modify, or retain a gas corporation’s obligation to provide service in an area within its service territory where adequate substitute energy service is reasonably available.
SEC. 3.
Chapter 8.8 (commencing with Section 1650) is added to Part 1 of Division 1 of the Public Utilities Code, to read:CHAPTER 8.8. Neighborhood Decarbonization Program
1650.
For purposes of this chapter, the following definitions apply:1651.
(a) The commission, in consultation with each of the state’s three largest gas corporations, shall develop and supervise the administration of the Neighborhood Decarbonization Program to facilitate the cost-effective decarbonization of targeted natural gas zones, not to exceed 15 pilot projects across the state and affecting no more than 1 percent of each gas corporation’s customers, with the intent to provide benefits that include, but are not limited to, reduced emissions of greenhouse gases and air pollution,1652.
The commission, in collaboration with each(b)
(c)
(d)Preference for
(e)
(f)
(g)
(h)Preference for projects that consider the deployment of advanced heat-pump technology in closed-loop systems.
(i)
1653.
(a) The commission shall coordinate with the Strategic Growth Council, the Governor’s Office of Business and Economic Development, the Energy Commission, gas corporations, and relevant federal agencies to identify third-party funding, such as state and federal funds, that may be used to establish and implement the program, including the use of external funding to execute projects that would be cost effective with supplemental nonratepayer funding.1654.
(a)(b)If the commission determines to terminate the program, the commission shall notify the Secretary of State of that determination and the effective date of that determination.
This chapter shall become inoperative on the effective date of the determination of the commission to terminate the program, and, as of January 1 of the following year, is repealed.