(1) Existing law establishes the Division of Oil, Gas, and Geothermal Resources within the Department of Conservation.
This bill would require the division to commission a task force dedicated to recommending policy suggestions on how to increase in-state produced supplies of natural gas.
The bill would require a county to review and respond to a natural gas drilling application within 30 calendar days of receipt of the application. Because this bill would require a county to perform a higher level of service, the bill would impose a state-mandated local program.
(2) 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 prohibit any transportation charge for natural gas from being assessed by the utility for the use of local pipelines not owned or leased by the utility.
(3) Existing law authorizes the Public Utilities Commission to issue an order to any public utility under its jurisdiction to make additions, extensions, repairs, or improvements to, or changes in, the existing plant, equipment, apparatus, facilities, or other physical property of the public utility. Existing law authorizes the commission to fix rates and establish rules for all public utilities under its jurisdiction.
This bill would require the commission, on or before July 1, 2002, to determine whether the natural gas infrastructure of the state’s gas utilities is sufficient to provide uninterrupted service to all customers so that any customer may expect their service to be curtailed not more than once every 5 years and so that transmission capacity exceeds the expected level of demand by not less than 15%. If the commission finds that the infrastructure is insufficient, the bill would require the commission to order the expansion of the infrastructure, as necessary. The bill would require the commission to establish an expedited review process for applications to construct gas facilities filed pursuant to an order of the commission under these provisions. The bill would require that concurrent with a new facility being placed in service, the commission shall set rates for each class of customers in a manner that ensures a return of the infrastructure investments at levels consistent with the returns on the utility’s other investments. The bill would require that the rates established be adjusted as necessary to meet this requirement. The bill would provide that if the commission fails to set rates, the requested rates immediately go into effect until the commission acts on the rate request. The bill would require the commission to establish exit fees if necessary to prevent customers from bypassing the rates set in compliance with these provisions. These provisions would be operative only until August 31, 2003.
Because a violation of the Public Utilities Act or an order of the commission is a crime under existing provisions of law, the bill would impose a state-mandated local program by expanding the definition of a crime.
(4) 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, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000.This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.