BILL NUMBER: AB 1031	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 14, 2001
	AMENDED IN ASSEMBLY  MAY 1, 2001

INTRODUCED BY   Assembly Member Canciamilla

                        FEBRUARY 23, 2001

   An act to add Section 776 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1031, as amended, Canciamilla.  Natural gas supplies.
   Existing law establishes the Public Utilities Commission and
authorizes the commission to supervise and regulate every public
utility in the state, including every gas corporation, that provides
a service or a commodity to the public.
   This bill would require the commission to report to the
Legislature by January 1, 2004, and every 2 years thereafter, the
10-year forecast of the demand for natural gas in the state.  The
bill would require that forecast to analyze long-term trends in
natural gas demand in the state  and   , 
to evaluate a wide variety of natural gas demand scenarios,
including, but not limited to, average conditions, and best- and
worst-case scenarios  , and to evaluate the impact of increasing
renewable resources on natural gas demand  .
   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.  (a) The Legislature finds and declares all of the
following:
   (1) Past predictions by the Public Utilities Commission regarding
demand levels for natural gas in the state have underestimated the
actual demand.
   (2) The incorrect estimates of the actual demand for natural gas
may have led to a failure to adequately plan for peak demands in the
state, by assuring that the existing natural gas infrastructure in
the state could meet those peak demands.
   (3) The incorrect estimates may lead to higher natural gas prices,
as infrastructure limitations may lead to an imbalance between the
demand and supply of natural gas.
   (b) It is the intent of the Legislature in enacting this act to do
both of the following:
   (1) Promote more reliable projections of the demand for natural
gas in the state.
   (2) Encourage any agency in the state that forecasts natural gas
demand in the future to make those projections based on a wide
variety of potential scenarios and conditions in the state.
  SEC. 2.  Section 776 is added to the Public Utilities Code, to
read:
   776.  By January 1, 2004, and every two years thereafter, the
commission shall report to the Legislature the 10-year forecast of
the demand for natural gas in the state.  The forecast shall do both
of the following:
   (a) Analyze long-term trends in natural gas demand in the state.
   (b) Evaluate a wide variety of natural gas demand scenarios,
including, but not limited to, average conditions, and best- and
worst-case scenarios.  
   (c) Evaluate the impact of increasing renewable resources on
natural gas demand.