BILL NUMBER: AB 1002 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 10, 2000
AMENDED IN SENATE JUNE 19, 2000
AMENDED IN SENATE JUNE 6, 2000
AMENDED IN SENATE AUGUST 17, 1999
AMENDED IN SENATE JULY 8, 1999
AMENDED IN ASSEMBLY MAY 27, 1999
AMENDED IN ASSEMBLY APRIL 26, 1999
AMENDED IN ASSEMBLY APRIL 14, 1999
AMENDED IN ASSEMBLY APRIL 6, 1999
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 amended, 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
establish a surcharge on all natural gas consumed in this state to
fund certain low-income assistance programs, cost-effective energy
efficiency and conservation activities, and public interest research
and development, as prescribed. The bill would require a public
utility gas corporation, as described, to collect the surcharge from
natural gas consumers, as specified. 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.
The bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIIIA of the California Constitution, and thus would require
for passage the approval of 2/3 of the membership of each house of
the Legislature.
(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 energy
efficiency, 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) On and after January 1, 2000
2001 , there shall be imposed a surcharge on all natural gas
consumed in this state. The commission shall establish a surcharge
to fund low-income assistance programs required by Sections 739.1,
739.2, and 2790 and cost-effective energy efficiency and conservation
activities and public interest research and development authorized
by Section 740 and 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) (1) Except as specified in Section 898, a public utility gas
corporation, as defined in subdivision (b) of Section 891, shall
collect the surcharge imposed pursuant to subdivision (a) from any
person consuming natural gas in this state who receives gas service
from the public utility gas corporation.
(2) A public utility gas corporation is relieved from liability to
collect the surcharge insofar as the base upon which the surcharge
is imposed is represented by accounts which have been found to be
worthless and charged off in accordance with generally accepted
accounting principles. If the public utility gas corporation has
previously paid the amount of the surcharge it may, under regulations
prescribed by the board State Board of
Equalization , take as a deduction on its return the amount
found to be worthless and charged off. If any accounts are
thereafter collected in whole or in part, the surcharge so collected
shall be paid with the first return filed after that collection. The
commission may by regulation promulgate such
other rules with respect to uncollected or worthless accounts as it
shall deem determines to be necessary
to the fair and efficient administration of this part.
(c) Except as specified in Section 898, all persons consuming
natural gas in this state that has been transported by an interstate
pipeline, as defined in subdivision (c) of Section 891, shall be
liable for the surcharge imposed pursuant to subdivision (a).
(d) 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) for the
service territory of each public utility gas corporation.
(e) The commission shall annually establish a surcharge rate for
each class of customer for the service territory of each public
utility gas corporation. A customer of an interstate gas pipeline,
as defined in Section 891, shall pay the same surcharge rate as the
customer would pay if the customer received service from the public
utility gas corporation in whose service territory the customer
resides is located . The commission
shall determine the total volume of retail natural gas transported
within the service territory of a utility gas provider, that is not
subject to exemption pursuant to Section 896, for the purpose of
establishing the surcharge rate.
(f) The commission shall allocate the surcharge for gas used by
all customers, including those customers who were not subject to the
surcharge prior to January 1, 2001.
(g) The commission shall notify the State Board of Equalization of
the surcharge rate for each class of customer served by an
interstate pipeline in the service territory of a public utility gas
corporation.
(h) The State Board of Equalization shall notify each person who
consumes natural gas delivered by an interstate pipeline of the
surcharge rate for each class of customer within the service
territory of a public utility gas corporation.
(i) The surcharge imposed pursuant to subdivision (a) shall be in
addition to any other charges for natural gas sold or transported for
consumption in this state. Effective on July 1, 2001, the surcharge
imposed pursuant to this article shall be identified as a separate
line item on the bill of a customer of a public utility gas
corporation.
(j) Notwithstanding subdivision (a), public utility gas
corporations shall continue to collect in rates those costs of
programs described in subdivision (a) of Section 890 that are
uncollected prior to the operative date of this article.
891. (a) "Gas utility" means any public utility gas corporation
or interstate pipeline as defined in this section.
(b) "Public utility gas corporation" means a public utility gas
corporation as defined in Section 216.
(c) "Interstate pipeline" means any entity that owns or operates a
natural gas pipeline delivering natural gas to consumers in the
state and is subject to rate regulation by the Federal Energy
Regulatory Commission.
(d) Each gas utility shall notify the State Board of Equalization
of its status under this section. Each person who consumes natural
gas delivered by an interstate pipeline shall annually register with
the State Board of Equalization. The State Board of Equalization may
require any documentation that it determines to be necessary to
implement this article.
892. The revenue from the surcharge imposed pursuant to this
article and collected by a public utility gas corporation shall be
paid to the State Board of Equalization in the form of remittances.
Persons consuming natural gas delivered by an interstate pipeline
shall pay the surcharge to the State Board of Equalization in the
form of remittances. The board shall transmit the payments to the
Treasurer who shall deposit the payments in the Gas Consumption
Surcharge Fund, which is hereby created in the State Treasury.
892.1. The surcharges imposed by this part and the amounts
thereof required to be collected by public utility gas corporations
are due quarterly on or before the last day of the month next
succeeding each calendar quarter.
892.2. On or before the last day of the month following each
calendar quarter, a return for the preceding quarterly period shall
be filed with the State Board of Equalization in such form as the
board may prescribe. A return shall be filed by every public utility
gas corporation, and by every person consuming, as defined in this
article, natural gas purchased from
transported by a provider other than the public utility gas
corporation. The return shall be signed by the person required to
file the return or by his or her duly authorized agent.
893. 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.
894. The State Board of Equalization may collect any unpaid
surcharge imposed pursuant to this article.
895. Notwithstanding Section 13340 of the Government Code, funds
in the Gas Consumption Surcharge Fund are continuously appropriated,
without regard to fiscal years, as follows:
(a) To the commission or an entity designated by the commission to
fund programs described in subdivision (a) of Section 890.
(b) To pay the commission for its costs in carrying out its duties
and responsibilities under this article.
(c) To pay the State Board of Equalization for its costs in
administering this article.
896. "Consumption" means the use 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, the sale or use of gas for enhanced oil
recovery, or natural gas utilized in cogeneration
technology projects to produce electricity , or natural gas that
is produced in California and is not required to meet the gas
quality specifications of the local gas utility . Consumption
does not include the consumption of natural gas which this state is
prohibited from taxing under the United States Constitution or the
California Constitution.
897. Nothing in this article impairs the rights and obligations
of parties to contracts approved by the commission, as the rights and
obligations were interpreted as of January 1, 1998.
898. Notwithstanding Section 890, a municipality, district, or
public agency that offers in published tariffs home weatherization
services, rate assistance for low-income customers, or programs
similar to those described in subdivision (a) of Section 890, shall
not be required to collect a surcharge pursuant to this article from
customers within its service territory. 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 service territory 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.
899. Sections 890 and 892 do not apply to any gas customer of a
municipality, district, or public agency exempted by Section 898
from collecting a surcharge.
900. The commission shall determine the most efficient and
cost-effective way to provide programs pursuant to Sections 739.1,
739.2, and 2790 in a consistent manner statewide by utility provider
service territory. In determining the most cost-effective way to
provide service that benefits persons eligible for low-income
programs, the commission shall consider factors, including, but not
limited to, outreach efforts to reach the targeted population and the
types of discounts and services that should be provided by each
utility. On or before July 1, 2001, the commission shall develop and
implement efficient and cost-effective programs pursuant to Sections
739.1, 739.2, and 2790. The commission may conduct compliance
audits to ensure compliance with any commission order or resolution
relating to the implementation of programs pursuant to Sections
739.1, 739.2, and 2790, and may conduct financial audits.
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.