BILL NUMBER: AB 1233	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2001
	AMENDED IN ASSEMBLY  APRIL 26, 2001
	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 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   another entity  that is not
interconnected with a  utility's  local  utility
 transmission system, and (c) it is blended with gas
supplies produced from an in-state source for the purposes of
achieving a usable thermal rate.  The bill would require the
commission to administer this provision in a manner that prohibits
any cost shift to core customers resulting from the rate exemption
required under the bill.   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.
  (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.  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.  (a) Natural gas may not be assessed local transmission
rates if all of the following conditions apply:
   (1) The gas is delivered to an end-use customer.
   (2) The gas is delivered through a transmission system owned by
 a gas corporation   another entity  that
does not interconnect with a  local utility  
utility's local  transmission system.
   (3) The gas is blended with gas supplies produced from an in-state
source for the purposes of achieving a usable thermal rate.
   (b) The commission shall administer this section in a manner that
prohibits any cost shift to core customers resulting from the rate
exemption required under subdivision (a).
  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.