BILL ANALYSIS
AB 1350
Page 1
ASSEMBLY THIRD READING
AB 1350 (Canciamilla)
As Amended April 25, 2001
2/3 vote. Urgency
UTILITIES AND COMMERCE 15-0
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|Ayes:|Wright, Pescetti, Bill | | |
| |Campbell, John Campbell, | | |
| |Canciamilla, Cardenas, | | |
| |Diaz, Kelley, Leonard, | | |
| |Maddox, Nation, Papan, | | |
| |Reyes, Simitian Wesson | | |
| | | | |
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SUMMARY : States legislative findings and declarations regarding
the need for increased natural gas production in California, and
utilization of the California Public Utilities Commission's
(CPUC) dispute resolution process to resolve any disputes
arising from implementation of a process governing the
connection of natural gas wells.
EXISTING LAW :
1)Requires CPUC to encourage as a first priority the increased
production of gas in this state, as specified.
2)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.
FISCAL EFFECT : Unknown
COMMENTS : The purpose of this bill is to increase in-state
natural gas production. Currently, only 16% of the natural gas
consumed in California is produced in-state. While the state
has numerous gas reserves, much of the gas contained in these
reserves fails to meet the minimum pipeline quality standards
established by gas utilities. This means that the producers of
the natural gas cannot connect their wells with utility
pipelines and therefore cannot sell the gas.
In-state gas producers and Pacific Gas and Electric (PG&E) are
AB 1350
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presently involved in negotiations to establish set guidelines
and procedures regarding the connection of in-state gas
production wells with utility pipelines. According to the
author, this measure is a legislative vehicle to implement any
Memorandum of Understanding between in-state producers and PG&E.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
FN: 0000672