(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 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.