BILL NUMBER: AB 1233	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 19, 2001

INTRODUCED BY   Assembly Member Pescetti

                        FEBRUARY 23, 2001

   An act to add Section 785.8 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1233, as amended, Pescetti.  Public utilities:  transportation
charges.
   (1) Existing law requires the Public Utilities Commission to allow
a gas corporation to fully recover all reasonable and prudent costs
associated with ownership and operation of the gas plant used for
transportation.
   This bill would  require any transportation charges
permitted under a rate tariff by the commission for the transmission
of natural gas from a gas well to the end-use customer to include the
cost of transmitting gas to and from a storage facility, or to and
from a facility that blends natural gas to achieve a usable thermal
rate.  The bill would prohibit any transportation charge from being
assessed by the utility for the use of local pipelines not owned by
the utility   prohibit assessment of local transmission
rates on natural gas if (a) it is delivered to an end-use customer,
(b) it is delivered through a transmission system owned by a gas
corporation, and (c) it is blended with gas supplies produced from an
in-state source for the purposes of achieving a usable thermal rate
 .  Because a violation of the Public Utilities Act is a crime
under existing provisions of law, this bill would create a
state-mandated local program by expanding the definition of a crime.

   The  
  (2) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  Section 785.8 is added to the Public Utilities Code, to
read:
   785.8.  Any transportation charges permitted under a rate tariff
by the commission for the transmission of natural gas from a gas well
to the end-use customer shall include the cost of transmitting gas
to and from a storage facility, or to and from a facility that blends
natural gas to achieve a usable thermal rate.  No transportation
charge may be assessed by a utility for the use of local pipelines
not owned by the utility.
  SEC. 2.   
  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California is one of the largest producers of oil and natural
gas in the nation.
   (b) California is one of the largest consumers of oil and natural
gas in the nation.
   (c) Natural gas is a crucial commodity that is necessary to
electrical production, residential heating, commodity production, and
industrial manufacturing.
   (d) The price of electricity is tied closely to the price of
natural gas.
   (e) Despite having significant untapped reserves of natural gas,
California remains heavily dependent upon out-of-state gas
deliveries.
   (f) It is in the state's long-term economic interest to promote
policies that maximize the use of available in-state resources and
encourage the increased production of natural gas.
  SEC. 2.  Section 785.8 is added to the Public Utilities Code, to
read:
   785.8.  Natural gas may not be assessed local transmission rates
if all of the following conditions apply:
   (a) The gas is delivered to an end-use customer.
   (b) The gas is delivered through a transmission system owned by a
gas corporation.
   (c) The gas is blended with gas supplies produced from an in-state
source for the purposes of achieving a usable thermal rate.
  SEC. 3.   No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIIIB of the California Constitution.