BILL NUMBER: AB 1031	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 3, 2001
	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   An act to amend Section 25310 of the
Public Resources Code, relating to  public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1031, as amended, Canciamilla.  Natural gas supplies. 
   Existing law requires the State Energy Resources and Conservation
Commission to publish and submit to the Governor and the Legislature,
every 2 years, a comprehensive report describing emerging trends
relating to the use, availability, and pricing of various fuels,
including natural gas.
   This bill would require the report to include, with respect to
long range forecasts of the demand for natural gas, an evaluation of
average conditions, as well as best and worst case scenarios, and an
evaluation of the impact of increasing renewable resources on natural
gas demand.  
   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 , 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.  
  SEC. 2.  Section 25310 of the Public Resources Code is amended to
read: 
   25310.  (a) Commencing November 1, 1985, and every two years
thereafter, the commission shall publish and submit to the Governor
and the Legislature a comprehensive report describing emerging trends
relating to the use, availability, and pricing of petroleum and
petroleum products, natural gas, coal, synthetic and other fuels, and
investments in production and refining, and potential alternate fuel
technologies.  The commission shall include in its report long range
forecasts of the anticipated supply and price of these fuels, and
the demand for these fuels in the residential, commercial, and
industrial sectors, and for electrical generation and transportation.
  The report shall assess the risk of fuel supply disruption, price
shocks, or other events, and shall assess the consequences of these
events on the availability and price of fuels and the effects on the
state's economy.   With respect to long range forecasts of the
demand for natural gas, the report shall include an evaluation of
average conditions, as well as best and worst case scenarios, and an
evaluation of the impact of increasing renewable resources on natural
gas demand.  The report shall also recommend needed changes in
the state's energy shortage contingency plans, and include specific
recommendations for legislative or administrative actions to increase
production and productivity, improve the efficiency of fuel use,
increase conservation, and any other actions needed to maintain
sufficient, secure, and affordable fuel supplies for the state.
Nothing in this section expands or diminishes the authority contained
in Section 25216.
   (b) Not less than 60 days prior to publication of the report
required by subdivision (a), the commission shall submit a draft copy
of the report to the Public Utilities Commission.  Not more than 45
days after receiving a copy of the draft report, the Public Utilities
Commission shall submit written comments to the commission on any
analysis, findings, or recommendations which pertain to the Public
Utilities Commission's constitutional, statutory, and other
responsibilities.  Each final report published and submitted to the
Legislature and the Governor pursuant to subdivision (a) shall
contain a summary of any written comments adopted and submitted to
the commission by the Public Utilities Commission.