BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1031|
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                                 THIRD READING


          Bill No:  AB 1031
          Author:   Canciamilla (D)
          Amended:  7/18/01 in Senate
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  7-2, 6/26/01
          AYES:  Bowen, Alarcon, Murray, Sher, Speier, Vasconcellos,  
            Vincent
          NOES:  Morrow, Battin

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 5/30/01 -  See last page for vote


           SUBJECT  :    Natural gas supplies

           SOURCE  :     Author


           DIGEST  :    This bill requires long-term forecasts of the  
          demand for natural gas and other specified information to  
          be included in its report to the Governor and Legislature  
          relative to emergency trends and availability of natural  
          gas. 

           Senate Floor Amendments of 7/18/01  remove inaccurate and  
          obsolete reference to the California Public Utilities  
          Commission.

           ANALYSIS  :    Existing law requires the State Energy  
          Resources and Conservation Commission to publish and submit  
          to the Governor and the Legislature, every two years, a  
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          comprehensive report describing emerging trends relating to  
          the use, availability and pricing of various fuels,  
          including natural gas.

          This bill requires 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 as best  
          and worst case scenarios, and an evaluation of the impact  
          of increasing renewable resources on natural gas demand.

           Background  

          Currently, the CEC is required under the Warren-Alquist Act  
          to submit a biennial fuels report to the Governor and the  
          Legislature that includes a description of emerging trends  
          in the use of natural gas.  The report is required to  
          include long-range forecasts of natural gas demand from  
          retail consumers, electrical generation and transportation.  
           The CPUC is required to review and comment on the report  
          as it relates to its jurisdiction.

          Separately, the CPUC adopts a biennial forecast of natural  
          gas demand for each utility it regulates in order to set  
          rates.  The CPUC also requires each utility to prepare an  
          annual natural gas report.  These reports include  
          historical gas demand and long-term (i.e., 20-year)  
          forecasts of gas demand.  The CPUC may use these forecasts  
          for long-term planning purposes, such as determining the  
          need for infrastructure additions to ensure adequate  
          service.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  
          AYES:  Aanestad, Alquist, Aroner, Bates, Bogh, Calderon,  
            Bill Campbell, Canciamilla, Cardenas, Cedillo, Chan,  
            Chavez, Chu, Cogdill, Cohn, Corbett, Correa, Cox,  
            Daucher, Diaz, Dickerson, Dutra, Firebaugh, Florez,  
            Frommer, Goldberg, Harman, Havice, Hollingsworth, Horton,  
            Jackson, Keeley, Kehoe, Kelley, Koretz, La Suer, Leach,  
            Leonard, Leslie, Liu, Longville, Lowenthal, Maddox,  
            Maldonado, Matthews, Migden, Mountjoy, Nation, Negrete  
            McLeod, Oropeza, Robert Pacheco, Rod Pacheco, Papan,  







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            Pavley, Pescetti, Reyes, Richman, Runner, Salinas,  
            Shelley, Simitian, Steinberg, Strickland, Strom-Martin,  
            Thomson, Vargas, Wayne, Wesson, Wiggins, Wright, Wyland,  
            Wyman, Zettel, Hertzberg


          NC:kb  7/17/01   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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