BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 14 X2
                                                                  Page  1

          Date of Hearing:   May 30, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                AB 14 X2 (Canciamilla) - As Introduced:  May 16, 2001 

          Policy Committee:                              E.C.&A (heard as  
          AB 73 X1)    Vote:                            15-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill exempts natural gas producers, suppliers, and  
          transporters from regulation as a public utility if the gas  
          produced is of low heating value and is not provided for sale to  
          more than five end users who may not, in turn, resell the gas to  
          other customers.  (These entities would still be subject to  
          Public Utilities Commission (PUC) jurisdiction with regards to  
          utility safety, service quality, and consumer protection  
          standards applied to public utilities.)

           FISCAL EFFECT  

          Negligible fiscal impact to the PUC.

           COMMENTS  

           Purpose  .  This bill is identical to the May 14, 2001 version of  
          AB 73 X1 (Canciamilla), as passed by the Energy Cost and  
          Availability Committee. The bill helps to provide an additional  
          supply of lower grade natural gas for mostly agricultural and  
          rural areas within the state, thus removing some of the burden  
          these customers pose on the existing supply of cleaner natural  
          gas.  (Low quality and low BTU gas generally exists in rather  
          remote wells throughout the state.)

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081