BILL NUMBER: AB 1002 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Wright
FEBRUARY 25, 1999
An act to add Article 10 (commencing with Section 890) to Chapter
4 of Part 1 of Division 1 of the Public Utilities Code, relating to
public utilities, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1002, as introduced, R. Wright. Natural gas: consumption
surcharge.
(1) The Public Utilities Act and other existing law requires
electrical and gas corporations to create certain public purpose
programs, including assistance to low-income customers and low-income
weatherization. The act authorizes the Public Utilities Commission
to allow the inclusion of expenses for research and development in
rates to be charged by, among other utilities, gas corporations.
This bill, except as specified, would require the commission to
impose a surcharge on all natural gas consumed in this state to fund
those public purpose programs, cost-effective energy efficiency and
conservation activities, and public interest research and
development, as prescribed. The money from the surcharge would be
deposited in the Gas Consumption Surcharge Fund, which fund the bill
would create, for continuous appropriation to specified entities, as
prescribed. Because a violation of the act is a crime, this bill
would impose a state-mandated local program by creating a new crime.
The bill would make legislative findings and declarations relating to
the surcharge.
(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: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares that statutes
and regulations have imposed programs and fees, such as low-income
assistance and weatherization programs, upon regulated gas utilities
that have public policy goals not directly related to the provision
of gas service. The costs borne by gas utilities to provide these
programs have historically been recovered through gas rates
established by the Public Utilities Commission.
(b) The Legislature also finds and declares that, due to changes
in state and federal regulations, the monopolies for the provisions
of gas service in California that effectively permitted the
commission to allocate the cost of these public policy programs to
all gas users are being replaced with competitive markets. Gas
customers may continue to take advantage of the deregulation of the
gas industries by obtaining service from nonregulated gas providers
who are not required to provide these programs. Thus, these
customers do not pay the costs of public policy programs.
(c) It is the intent of the Legislature to continue public policy
programs in an equitable manner that will ensure that all gas
consumers will provide a fair share of adequate funding for these
programs without increasing the current funding levels for these
programs.
SEC. 2. Article 10 (commencing with Section 890) is added to
Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to
read:
Article 10. Natural Gas Surcharge
890. (a) No later than January 1, 2000, the commission shall
impose a surcharge, as provided in this article, on all natural gas
consumed in this state to fund low-income assistance programs
required by Sections 739.1, 739.2, and 2790, cost-effective energy
efficiency and conservation activities, and public interest research
and development authorized by Section 740 that is not adequately
provided by the competitive and regulated markets. Upon
implementation of this article, funding for those programs shall be
removed from the rates of gas utilities.
(b) The commission shall annually determine the amount of money
required for the following year to administer this chapter and fund
the natural gas related programs described in subdivision (a).
(c) The commission shall annually establish a surcharge rate for
each class of customer. The commission shall allocate the surcharge
for gas used by noncore customers, including those customers who were
not subject to the surcharge prior to January 1, 2000, on an equal
cent per therm basis.
(d) The surcharge imposed pursuant to this article shall be
identified as a separate line item on all gas bills received by each
class of customer.
(e) Notwithstanding subdivision (a), gas utilities shall continue
to collect in rates those costs of programs associated with Sections
739.1, 739.2, and 2790 that are uncollected prior to the operative
date of this article.
891. Each utility transporting or selling natural gas for
consumption in this state shall notify the State Board of
Equalization that it is a utility gas provider. Each nonutility
pipeline company transporting natural gas in this state shall notify
the State Board of Equalization that it is a nonutility gas
transporter. The State Board of Equalization may require any
documentation that it determines to be necessary to implement this
article. The State Board of Equalization shall provide the commission
with information necessary to establish a surcharge pursuant to
Section 890.
892. "Consumption" means the utilization or employment of natural
gas. Consumption does not include the use or employment of natural
gas to generate power for sale, the sale or purchase of natural gas
for resale to end users, or natural gas utilized in cogeneration
technology projects to produce electricity in accordance with Section
454.4 of the Public Utilities Code.
893. Except as specified in Section 897, all utility gas
providers shall collect a surcharge pursuant to this article from
persons consuming natural gas in this state who receive gas service
from a utility. All nonutility gas pipelines shall collect that
surcharge from persons consuming natural gas in this state who
receive gas transportation service from a nonutility gas transporter.
The surcharge shall be in addition to the charges for the natural
gas sold or transported for consumption in this state.
894. The revenue from the surcharge imposed pursuant to this
article and collected by utility gas providers and nonutility gas
providers shall be paid to the State Board of Equalization.
895. Except as specified in Section 892, all persons consuming
natural gas in this state shall be liable for the surcharge imposed
pursuant to this article.
896. (a) All money required to be paid to the state under this
article shall be paid in the form of remittances payable to the State
Board of Equalization. The board shall transmit the payments to the
Treasurer to be deposited in the Gas Consumption Surcharge Fund,
which is hereby created in the State Treasury.
(b) Notwithstanding Section 13340 of the Government Code, funds in
the Gas Consumption Surcharge Fund are continuously appropriated
solely for the following, to be paid by the Controller as follows:
(1) To pay eligible persons providing natural gas related programs
and projects specified in subdivision (a) of Section 890. This
amount shall not exceed the amount determined by the commission to
fund those programs.
(2) To pay the commission for its costs in carrying out its duties
and responsibilities under this article.
(3) To pay the Controller for its costs in administering this
article.
(4) To pay the State Board of Equalization for its costs in
administering this article.
897. Notwithstanding Section 890, a municipality, district, or
public agency that provides home weatherization services for
low-income customers or that offers rate assistance to low-income
customers shall not be required to collect a surcharge pursuant to
this article from customers within its jurisdiction. A municipality,
district, or public agency shall be required to collect a surcharge
pursuant to this article from customers served by the municipality,
district, or public agency outside of its jurisdiction unless the
commission determines that the entity offers those customers services
similar to those offered by gas utilities as described in
subdivision (a) of Section 890.
898. Sections 895 and 896 shall not apply to any gas customer of
a municipality, district, or public agency exempted by Section 897
from collecting a surcharge.
899. The State Board of Equalization shall administer the
surcharge imposed pursuant to this article in accordance with the Fee
Collection Procedures Law (Part 30 (commencing with Section 55001)
of Division 2 of the Revenue and Taxation Code).
900. The State Board of Equalization shall have the authority to
collect any unpaid surcharges imposed pursuant to this article.
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.