BILL NUMBER: AB 1233	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 5, 2001
	AMENDED IN SENATE  AUGUST 27, 2001
	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 785.2 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 authorizes the Public Utilities Commission to
establish rates for public utilities, including gas corporations.
Under existing law, the commission requires every gas corporation to
revise its transportation tariffs and conditions of service to
eliminate all components that assess shippers of gas produced in the
state for the costs of interstate transmission of gas produced
outside the state.  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 the commission to investigate, as part of
the rate proceeding for any gas corporation, impediments to the
in-state production and storage of natural gas.   The bill
would prohibit the commission, as specified, from adopting a tariff
that has the effect of discouraging in-state production or storage of
natural gas.   The bill would authorize the commission to
adopt a tariff that encourages in-state production or storage of
natural gas, including reducing local transmission rates applicable
to in-state gas blends, unless the commission finds that adopting the
tariff will likely result in consequences adverse to the interests
of gas customers.   The bill would state related legislative
findings and declarations.   Since a violation of an order by
the commission is a crime under existing provisions of law, the 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 for
electricity 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.
   (g) It is also in the state's long-term economic interest to
maximize the development of renewable energy sources, decrease its
overall dependence on natural gas, and create a more diverse mix of
energy supplies and energy efficiency measures.  
   (h) To the extent practicable, and consistent with Sections 785
and 785.5 of the Public Utilities Code, the Public Utilities
Commission should not adopt a tariff that has the effect of
discouraging in-state production or storage of natural gas. 
  SEC. 2.  Section 785.2 is added to the Public Utilities Code, to
read:
   785.2.  The commission shall investigate, as part of the rate
proceeding for any gas corporation, impediments to the in-state
production and storage of natural gas.   To the extent
practicable and consistent with Sections 785 and 785.5, the
commission may not adopt a tariff that has the effect of discouraging
in-state production or storage of natural gas.   The
commission may adopt a tariff that encourages in-state production or
storage of natural gas, including, but not limited to, reducing local
transmission rates applicable to in-state gas blends, unless the
commission finds that adopting the tariff will likely result in
consequences adverse to the interests of gas customers.
  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.