BILL NUMBER: AB 1350	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 10, 2001
	AMENDED IN ASSEMBLY  APRIL 25, 2001
	AMENDED IN ASSEMBLY  APRIL 19, 2001

INTRODUCED BY   Assembly Member Canciamilla
    (Coauthor: Assembly Member   (Coauthors:
Assembly Members Cogdill and  Pescetti)

                        FEBRUARY 23, 2001

   An act relating to energy, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1350, as amended, Canciamilla.  Natural gas:  producers.
   (1) The California Gas Policy Act requires the Public Utilities
Commission, among other things, to encourage as a first priority the
increased production of gas in this state, as specified.  The act
also makes it the policy of the state that natural gas produced in
this state is not placed at an unfair economic disadvantage relative
to gas from sources outside of the state as the result of any
transportation tariffs or conditions of service.
   This bill would state legislative findings and declarations
regarding the need for increased natural gas production in
California.
  (2) This bill would declare that it is to take effect immediately
as an urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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) Natural gas is a critical commodity necessary to electrical
production, residential heating, commodity production, and industrial
manufacturing.
   (c) California has historically produced up to 25 percent of its
total natural gas needs.
   (d) It is in the long-term economic interest of the state to
encourage and increase the amount of natural gas produced in
California.
   (e) A process should be established governing the timely
connection in California of new standard wells, including those
proposed for connection through an existing meter, and nonstandard
wells to increase in-state natural gas production.  
   (f) Standard wells should be defined as wells that produce gas
supplies that meet the minimum pipeline quality standards established
by a gas corporation.
   (g) Nonstandard wells should be defined as wells that produce gas
that does not meet the minimum pipeline quality standards established
by a gas corporation.
   (h) An expedited arbitration process to oversee and resolve any
disputes resulting from the implementation of the process governing
timely connection of natural gas wells should be established.
 
   (f) The Public Utilities Commission's dispute resolution process
should be utilized to resolve any disputes resulting from the
implementation of the process governing timely connection of natural
gas wells. 
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to ensure, at the earliest possible time, the sufficient
availability of affordable natural gas necessary for electrical
production, residential heating, commodity production, and industrial
manufacturing, it is necessary for this act to take effect
immediately.