SB 1441: Natural gas: methane emissions.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2016-08-19
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires the commission, in order to achieve transparency and accountability for rate revenues and best value for ratepayers, to consider, among other things, providing revenues for all activities identified and required by certain rules and procedures governing the operation, maintenance, repair, and replacement of commission-regulated gas pipeline facilities, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
This bill would prohibit the commission, bill, on or after January 1, 2019, when establishing rates for a gas corporation, to the extent feasible and in appropriate proceedings, as determined by the commission, would prohibit the commission from allowing a gas corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere from certain natural gas facilities under the control of the gas corporation, as specified.
Under existing law, the Public Utilities Commission, Commission has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires the commission, in order to achieve transparency and accountability for rate revenues and best value for ratepayers, to consider, among other things, providing revenues for all activities identified and required by certain rules and procedures governing the operation, maintenance, repair, and replacement of commission-regulated gas pipeline facilities, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
This bill would prohibit the commission, in on or after January 1, 2019, when establishing rates for a gas corporation, from allowing a gas corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere from certain natural gas facilities under the control of the gas corporation, as specified.
Under existing law, the Public Utilities Commission, has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires the commission, in order to achieve transparency and accountability for rate revenues and best value for ratepayers, to consider, among other things, providing revenues for all activities identified and required by certain rules and procedures governing the operation, maintenance, repair, and replacement of commission-regulated gas pipeline facilities, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
This bill would, in establishing rates for gas corporations, prohibit the commission would prohibit the commission, in establishing rates for a gas corporation, from allowing a gas corporations corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas, as specified. from certain natural gas facilities under the control of the gas corporation, as specified.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to adopt rules and regulations in an open, public process to achieve the maximum, technologically feasible, and cost-effective greenhouse gas emissions reductions.
The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state and to take specified actions and conduct specified analyses with respect to methane emissions.
This bill would require the state board, in consultation with the Public Utilities Commission and other relevant state agencies, to adopt by regulation no later than January 1, 2020, methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2013 levels for systemwide methane emissions from natural gas used in California by 2025, as specified. The bill also would require the state board, in consultation with the commission and other relevant state agencies, to consider, among other things, developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives a significant portion of its natural gas and imposing new requirements on the states regulated gas corporations related to natural gas procurement and the tracking of interstate deliveries.
(2)Under
Under existing law, the commission Public Utilities Commission, has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would, in establishing rates for gas corporations, prohibit the commission from allowing gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas, as specified.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to adopt rules and regulations in an open open, public process to achieve the maximum, technologically feasible, and cost-effective greenhouse gas emissions reductions.
The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state and to take specified actions and conduct specified analyses with respect to methane emissions.
This bill would require the state board, in consultation with the Public Utilities Commission and other relevant state agencies, to adopt by regulation no later than January 1, 2020, methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2012 2013 levels for systemwide methane emissions levels from natural gas used in California by 2025, as specified. The bill also would require the state board, in consultation with the commission and other relevant state agencies, to consider, among other things, developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives a significant portion of its natural gas and imposing new requirements on the states regulated natural gas corporations related to natural gas procurement and the tracking of interstate deliveries.
(2)Under existing law, the commission has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would, in establishing rates for gas corporations, prohibit the commission from allowing gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas, as specified.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to adopt rules and regulations in an open public process to achieve the maximum, technologically feasible, and cost-effective greenhouse gas emissions reductions.
The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state and to take specified actions and conduct specified analyses with respect to methane emissions.
This bill would require the state board, in consultation with the Public Utilities Commission and other relevant state agencies, to adopt by regulation no later than January 1, 2020, methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2012 methane emissions levels by 2025, as specified. The bill also would require the state board, in consultation with the commission and other relevant state agencies, to consider, among other things, developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives natural gas and imposing new requirements on the states regulated natural gas corporations related to natural gas procurement and the tracking of interstate deliveries.
(2)Under existing law, the commission has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would, in establishing rates for gas corporations, prohibit the commission from allowing gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas. gas, as specified.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the board to adopt greenhouse gas emission limits and emission reduction measures by regulation, and authorizes the state board to include the use of market-based compliance mechanisms in its implementing regulations to achieve those emissions goals. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to adopt rules and regulations in an open public process to achieve the maximum, technologically feasible, and cost-effective greenhouse gas emissions reductions.
This bill would require the state board, in regulations implementing a market-based compliance mechanism, to include vented emissions and fugitive emissions of natural gas as counting against the compliance obligation of certain covered natural-gas-related entities under the mechanism.
The state board is also required to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state and to take specified actions and conduct specified analyses with respect to methane emissions.
This bill would require the state board, in consultation with the Public Utilities Commission and other relevant state agencies, to adopt by regulation no later than January 1, 2020, methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2012 methane emissions levels by 2025, as specified. The bill also would require the state board, in consultation with the commission and other relevant state agencies, to consider, among other things, developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives natural gas and imposing new requirements on the states regulated natural gas corporations related to natural gas procurement and tracking of interstate deliveries.
(2)Under existing law, the Public Utilities Commission commission has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would, in establishing rates for gas corporations, prohibit the commission from considering systemic natural gas losses in the form of vented or fugitive emissions occurring during the injection, storage, transmission, or distribution allowing gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the board to adopt greenhouse gas emission limits and emission reduction measures by regulation, and authorizes the state board to include the use of market-based compliance mechanisms in its implementing regulations to achieve those emissions goals.
This bill would require the state board, in regulations implementing a market-based compliance mechanism, to include vented emissions and fugitive emissions of natural gas as counting against the compliance obligation of certain covered natural-gas-related entities under the mechanism.
(2)Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would, in establishing rates for gas corporations, prohibit the commission from considering systemic natural gas losses in the form of vented or fugitive emissions occurring during the injection, storage, transmission, or distribution of the natural gas.
(a)In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(1)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(2)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(3)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(4)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
(b)(1)To On or after January 1, 2019, to the extent feasible and in appropriate proceedings, as determined by the commission, on or after January 1, 2019, when establishing rates for a gas corporation in an individual rulemaking proceeding or in a general rate case, the commission shall not allow the gas corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere from any of the following natural gas facilities under the control of the gas corporation:
(A)Commission-regulated gas pipeline facilities as defined in Section 975.
(B)Above-ground storage facilities.
(C)Underground storage facilities.
(D)Processing facilities.
(E)Facilities used for the transportation of natural gas.
(F)Facilities used for the delivery of natural gas.
(2)Paragraph (1) does not apply to natural gas lost to the atmosphere resulting from an act of God.
(a)In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(1)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(2)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(3)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(4)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
(b)(1)To the extent feasible as determined by the commission, on or after January 1, 2019, when establishing rates for a gas corporation in an individual rulemaking proceeding or in a general rate case, the commission shall not allow the gas corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere from any of the following natural gas facilities under the control of the gas corporation:
(A)Commission-regulated gas pipeline facilities as defined in Section 975.
(B)Above-ground storage facilities.
(C)Underground storage facilities.
(D)Processing facilities.
(E)Facilities used for the transportation of natural gas.
(F)Facilities used for the delivery of natural gas.
(2)Paragraph (1) does not apply to natural gas lost to the atmosphere resulting from an act of God.
(a)In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(a)
(1)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(b)(1)
(2)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(2)In establishing rates for gas corporations, to the extent feasible as determined by the commission in an individual rulemaking proceeding or in general rate cases, the commission shall not allow gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas.
(c)
(3)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(d)
(4)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
(b)(1)To the extent feasible as determined by the commission, when establishing rates for a gas corporation in an individual rulemaking proceeding or in a general rate case, the commission shall not allow the gas corporation to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere from any of the following natural gas facilities under the control of the gas corporation:
(A)Commission-regulated gas pipeline facilities as defined in Section 975.
(B)Above-ground storage facilities.
(C)Underground storage facilities.
(D)Processing facilities.
(E)Facilities used for the transportation of natural gas.
(F)Facilities used for the delivery of natural gas.
(2)Paragraph (1) does not apply to natural gas lost to the atmosphere resulting from an act of God.
The Legislature finds and declares all of the following:
(a)California is the nations second largest user of natural gas, comprising nearly 10 percent of the entire national consumption. This natural gas comes from a variety of basins, with over 90 percent of the natural gas used in the state being imported from locations across the southwestern United States, the Rocky Mountains, and western Canada before being transported through more than 100,000 miles of pipe to over 11 million customers in the state.
(b)Methane, the principle component of natural gas, is a greenhouse gas known by the Intergovernmental Panel on Climate Change to have a global warming potential 28 times that of carbon dioxide over a 100-year time horizon and 84 times that of carbon dioxide over a 20-year time horizon.
(c)Methane leakage during the drilling, production, and transportation of natural gas used in the state contributes to the overall climate footprint of the energy system of the state, and although additional scientific research and analysis is presently being conducted to evaluate how much methane is leaked, there is enough information and it is imperative to continue to act to reduce that leakage.
(d)The Legislature has established a policy goal to significantly reduce emissions of greenhouse gases in California, including methane leakage, but there is insufficient accountability over methane that is released into the atmosphere from operations within the state or from operations connected to gas imported into the state.
(e)Requiring accountability for methane leakage associated with operations necessary to bring natural gas to state residents, in addition to adjusting and creating incentives to reduce leakage, will enable a more thorough approach to meeting the states climate change goals while providing for a full accounting of the states climate footprint.
(f)The Legislature also has established that the safety of the natural gas pipeline infrastructure in the state is a priority for the Public Utilities Commission and gas corporations, and nothing in this act shall compromise or deprioritize safety as a top consideration.
(g)While providing just and reasonable rate revenues for California gas corporations to find, categorize, and repair leaks promptly when discovered, including employing an adequate workforce, is in the public interest and promotes the interests of customers and the public, providing revenue to gas corporations to compensate them for the value of gas they lose to the atmosphere is not in the public interest.
(h)While action in other states and by the federal government is necessary to fully address methane pollution from operations associated with natural gas imported into the state, integrating the full climate footprint of California natural gas into statewide planning efforts while also developing initiatives to actually reduce that footprint benefits the environment and reduces the leakage associated with the states climate programs.
SEC. 2.Section 39731.5 is added to the Health and Safety Code, to read:39731.5.(a)Notwithstanding Sections 38550 and 38551, no later than January 1, 2020, the state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall adopt by regulation methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40 percent below 2013 levels for systemwide methane emissions from natural gas used in California, by 2025.
(b)The regulation adopted pursuant to subdivision (a) shall include both of the following:
(1)Information gathered or acquired pursuant to subdivision (b) of Section 39731 to determine the 2013 levels for systemwide methane emissions.
(2)Interim targets to reach the methane emissions level described in subdivision (a).
(c)The state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall consider all of the following:
(1)Developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives a significant portion of its natural gas.
(2)Imposing new requirements on the states regulated gas corporations related to natural gas procurement and the tracking of interstate deliveries.
(3)Modifying the states market-based emissions reduction measures, including a market-based compliance mechanism adopted pursuant to Section 38570, to account for and include methane emissions within the compliance obligations of natural gas utilities or fuel importers.
(4)Participating in or forming interstate and federal working groups, compacts, or agreements.
(d)Regulations adopted pursuant to subdivision (a) shall be designed in a manner that seeks to minimize the costs and maximize total benefits.
(e)This section shall be implemented to the extent feasible and consistent with law.
SEC. 3.SECTION 1.Section 977 of the Public Utilities Code is amended to read:977.In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(a)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(b)(1)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(2)In establishing rates for gas corporations, to the extent feasible as determined by the commission, commission in an individual rulemaking proceeding or in general rate cases, the commission shall not allow gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas.
(c)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(d)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
The Legislature finds and declares all of the following:
(a)California is the nations second largest user of natural gas, comprising nearly 10 percent of the entire national consumption. This natural gas comes from a variety of basins, with over 90 percent of the natural gas used in the state being imported from locations across the southwestern United States, the Rocky Mountains, and western Canada before being transported through more than 100,000 miles of pipe to over 11 million customers in the state.
(b)Methane, the principle component of natural gas, is a greenhouse gas known by the Intergovernmental Panel on Climate Change to have a global warming potential 28 times that of carbon dioxide over a 100-year time horizon and 84 times that of carbon dioxide over a 20-year time horizon.
(c)Methane leakage during the drilling, production, and transportation of natural gas used in the state contributes to the overall climate footprint of the energy system of the state, and although additional scientific research and analysis is presently being conducted to evaluate how much methane is leaked, there is enough information and it is imperative to continue to act to reduce that leakage.
(d)The Legislature has established a policy goal to significantly reduce emissions of greenhouse gases in California, including methane leakage, but there is insufficient accountability over methane that is released into the atmosphere from operations within the state or from operations connected to gas imported into the state.
(e)Requiring accountability for methane leakage associated with operations necessary to bring natural gas to state residents, in addition to adjusting and creating incentives to reduce leakage, will enable a more thorough approach to meeting the states climate change goals while providing for a full accounting of the states climate footprint.
(f)The Legislature also has established that the safety of the natural gas pipeline infrastructure in the state is a priority for the Public Utilities Commission and gas corporations, and nothing in this act shall compromise or deprioritize safety as a top consideration.
(g)While providing just and reasonable rate revenues for California gas corporations to find, categorize, and repair leaks promptly when discovered, including employing an adequate workforce, is in the public interest and promotes the interests of customers and the public, providing revenue to gas corporations to compensate them for the value of gas they lose to the atmosphere is not in the public interest.
(h)While action in other states and by the federal government is necessary to fully address methane pollution from operations associated with natural gas imported into the state, integrating the full climate footprint of California natural gas into statewide planning efforts while also developing initiatives to actually reduce that footprint benefits the environment and reduces the leakage associated with the states climate programs.
SEC. 2.Section 39731.5 is added to the Health and Safety Code, to read:39731.5.(a)Notwithstanding Sections 38550 and 38551, no later than January 1, 2020, the state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall adopt by regulation methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40 percent below 2012 2013 levels for systemwide methane emissions levels from natural gas used in California, by 2025.
(b)The regulation adopted pursuant to subdivision (a) shall include both of the following:
(1)Information gathered or acquired pursuant to subdivision (b) of Section 39731 to determine the 2012 level of 2013 levels for systemwide methane emissions.
(2)Interim targets to reach the methane emissions level described in subdivision (a).
(c)The state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall consider all of the following:
(1)Developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives a significant portion of its natural gas.
(2)Imposing new requirements on the states regulated natural gas corporations related to natural gas procurement and the tracking of interstate deliveries.
(3)Modifying the states market-based emissions reduction measures, including a market-based compliance mechanism adopted pursuant to Section 38570, to account for and include methane emissions within the compliance obligations of natural gas utilities or fuel importers.
(4)Participating in or forming interstate and federal working groups, compacts, or agreements.
(5)Designing regulations in a manner that seeks to minimize costs and maximize the total benefits.
(d)Regulations adopted pursuant to subdivision (a) shall be designed in a manner that seeks to minimize the costs and maximize total benefits.
(d)
(e)This section shall be implemented to the extent feasible and consistent with law.
SEC. 3.Section 977 of the Public Utilities Code is amended to read:977.In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(a)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(b)(1)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(2)In establishing rates for gas corporations, to the extent feasible as determined by the commission, in an individual rulemaking proceeding or in general rate cases, the commission shall not allow gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas.
(c)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(d)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
The Legislature finds and declares all of the following:
(a)California is the nations second largest user of natural gas, comprising nearly 10 percent of the entire national consumption. This natural gas comes from a variety of basins, with over 90 percent of the natural gas used in the state being imported from locations across the southwestern United States, the Rocky Mountains, and western Canada before being transported through more than 100,000 miles of pipe to over 11 million customers in state.
(b)Methane, the principle component of natural gas, is a greenhouse gas known by the Intergovernmental Panel on Climate Change to have a global warming potential 28 times that of carbon dioxide over a 100-year time horizon and 84 times that of carbon dioxide over a 20-year time horizon.
(c)Methane leakage during the drilling, production, and transportation of natural gas used in the state contributes to the overall climate footprint of the energy system of the state, and although additional scientific research and analysis is presently being conducted to evaluate how much methane is leaked, there is enough information and it is imperative to continue to act to reduce that leakage.
(d)The Legislature has established a policy goal to significantly reduce emissions of greenhouse gases in California, including methane leakage, but there is insufficient accountability over methane that is released into the atmosphere from operations within the state or from operations connected to gas imported into the state.
(e)Requiring accountability for methane leakage associated with operations necessary to bring natural gas to state residents, in addition to adjusting and creating incentives to reduce leakage, will enable a more thorough approach to meeting the states climate change goals while providing for a full accounting of the states climate footprint.
(f)The Legislature also has established that the safety of the natural gas pipeline infrastructure in the state is a priority for the Public Utilities Commission and gas corporations, and nothing in this act shall compromise or deprioritize safety as a top consideration.
(g)While providing just and reasonable rate revenues for California gas corporations to find, categorize, and repair leaks promptly when discovered, including employing an adequate workforce, is in the public interest and promotes the interests of customers and the public, providing revenue to gas corporations to compensate them for the value of gas they lose to the atmosphere is not in the public interest.
(h)While action in other states and by the federal government is necessary to fully address methane pollution from operations associated with gas imported into the state, integrating the full climate footprint of California natural gas into statewide planning efforts while also developing initiatives to actually reduce that footprint benefits the environment and reduces the leakage associated with the states climate programs.
SEC. 2.Section 39731.5 is added to the Health and Safety Code, to read:39731.5.(a)Notwithstanding Sections 38550 and 38551, no later than January 1, 2020, the state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall adopt by regulation methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40 percent below 2012 methane emissions levels by 2025.
(b)The regulation adopted pursuant to subdivision (a) shall include both of the following:
(1)Information gathered or acquired pursuant to subdivision (b) of Section 39731 to determine the 2012 level of methane emissions.
(2)Interim targets to reach the methane emissions level described in subdivision (a).
(c)The state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall consider all of the following:
(1)Developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives natural gas.
(2)Imposing new requirements on the states regulated natural gas corporations related to natural gas procurement and the tracking of interstate deliveries.
(3)Modifying the states market-based emissions reduction measures, including a market-based compliance mechanism adopted pursuant to Section 38570, to account for and include methane emissions within the compliance obligations of natural gas utilities or fuel importers.
(4)Participating in or forming interstate and federal working groups, compacts, or agreements.
(5)Designing regulations in a manner that seeks to minimize costs and maximize the total benefits.
(d)This section shall be implemented to the extent feasible and consistent with law.
SEC. 3.Section 977 of the Public Utilities Code is amended to read:977.In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(a)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(b)(1)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(2)In establishing rates for gas corporations, to the extent feasible as determined by the commission, in an individual rulemaking proceeding or in general rate cases, the commission shall not allow gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas.
(c)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(d)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
The Legislature finds and declares all of the following:
(a)California is the nations second largest user of natural gas, comprising nearly 10 percent of the entire national consumption. This natural gas comes from a variety of basins, with over 90 percent of the natural gas used in the state being imported from locations across the southwestern United States, the Rocky Mountains, and western Canada before being transported through more than 100,000 miles of pipe to over 11 million customers in state.
(b)Methane, the principle component of natural gas, is a greenhouse gas known by the Intergovernmental Panel on Climate Change to have a global warming potential 28 times that of carbon dioxide over a 100-year time horizon and 84 times that of carbon dioxide over a 20-year time horizon.
(c)Methane leakage during the drilling, production, and transportation of natural gas used in the state contributes to the overall climate footprint of the energy system of the state, and although additional scientific research and analysis is presently being conducted to evaluate how much methane is leaked, there is enough information and it is imperative to continue to act to reduce that leakage.
(d)The Legislature has established a policy goal to significantly reduce emissions of greenhouse gases in California, including methane leakage, but there is insufficient accountability over methane that is released into the atmosphere from operations within the state or from operations connected to gas imported into the state.
(e)Requiring accountability for methane leakage associated with operations necessary to bring natural gas to state residents, in addition to adjusting and creating incentives to reduce leakage, will enable a more thorough approach to meeting the states climate change goals while providing for a full accounting of the states climate footprint.
(f)The Legislature also has established that the safety of the natural gas pipeline infrastructure in the state is a priority for the Public Utilities Commission and gas corporations, and nothing in this act shall compromise or deprioritize safety as a top consideration.
(g)While providing just and reasonable rate revenues for California gas corporations to find, categorize, and repair leaks promptly when discovered, including employing an adequate workforce, is in the public interest and promotes the interests of customers and the public, providing revenue to gas corporations to compensate them for the value of gas they lose to the atmosphere is not in the public interest.
(h)While action in other states and by the federal government is necessary to fully address methane pollution from operations associated with gas imported into the state, integrating the full climate footprint of California natural gas into statewide planning efforts while also developing initiatives to actually reduce that footprint benefits the environment and reduces the leakage associated with the states climate programs.
SEC. 2.Section 39731.5 is added to the Health and Safety Code, to read:39731.5.(a)Notwithstanding Sections 38550 and 38551, no later than January 1, 2020, the state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall adopt by regulation methane emissions reduction measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40 percent below 2012 methane emissions levels by 2025.
(b)The regulation adopted pursuant to subdivision (a) shall include both of the following:
(1)Information gathered or acquired pursuant to subdivision (b) of Section 39731 to determine the 2012 level of methane emissions.
(2)Interim targets to reach the methane emissions level described in subdivision (a).
(c)The state board, in consultation with the Public Utilities Commission and other relevant state agencies, shall consider all of the following:
(1)Developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives natural gas.
(2)Imposing new requirements on the states regulated natural gas corporations related to natural gas procurement and tracking of interstate deliveries.
(3)Modifying the states market-based emissions reduction measures, including a market-based compliance mechanism adopted pursuant to Section 38570, to account for and include methane emissions within the compliance obligations of natural gas utilities or fuel importers.
(4)Participating in or forming interstate and federal working groups, compacts, or agreements.
(5)Designing regulations in a manner that seeks to minimize costs and maximize the total benefits.
(d)This section shall be implemented to the extent feasible and consistent with law.
SEC. 3.Section 977 of the Public Utilities Code is amended to read:977.In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commissions existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:
(a)Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.
(b)(1)Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.
(2)In establishing rates for gas corporations, in an individual rulemaking proceeding or in general rate cases, the commission shall not allow gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas.
(c)Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.
(d)The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.
SECTION 1.In enacting this act, it is the intent of the Legislature to create incentives to reduce or eliminate vented emissions and fugitive emissions of natural gas.
SEC. 2.Section 38572 is added to the Health and Safety Code, to read:38572.(a)For purposes of this section, the following definitions apply:
(1)Fugitive emissions has the same meaning as set forth in Section 39023.3.
(2)Vented emissions means intentional or designed releases of natural gas or hydrocarbon gas, not including stationary combustion flue gas, including process designed flow to the atmosphere through seals or vent pipes, equipment blowdown for maintenance, and direct venting of gas used to power equipment, such as pneumatic devices.
(b)In regulations implementing a market-based compliance mechanism pursuant to this part, the state board shall include vented or fugitive emissions of natural gas as counting against the compliance obligation of covered entities engaged in the extraction, distribution, or transmission of natural gas under the mechanism.
SEC. 3.Section 747.2 is added to the Public Utilities Code, to read:747.2.(a)For purposes of this section, the following definitions apply:
(1)Fugitive emissions has the same meaning as set forth in Section 39023.3 of the Health and Safety Code.
(2)Vented emissions means intentional or designed releases of natural gas or hydrocarbon gas, not including stationary combustion flue gas, including process designed flow to the atmosphere through seals or vent pipes, equipment blowdown for maintenance, and direct venting of gas used to power equipment, such as pneumatic devices.
(b)In establishing rates for gas corporations, the commission shall not consider the systemic natural gas losses in the form of fugitive or vented emissions occurring during the injection, storage, transmission, or distribution of the natural gas.
(c)(1)This section does not prohibit gas corporations from using ratepayer funds to repair systemic natural gas leaks or to improve industry practices to reduce or eliminate vented or fugitive emissions.
(2)This section does not prohibit gas corporations from recovering their costs incurred in compliance with regulations adopted pursuant to Section 38572 of the Health and Safety Code.
In enacting this act, it is the intent of the Legislature to create incentives to reduce or eliminate vented emissions and fugitive emissions of natural gas.
SEC. 2.Section 38572 is added to the Health and Safety Code, to read:38572.(a)For purposes of this section, the following definitions apply:
(1)Fugitive emissions has the same meaning as set forth in Section 39023.3.
(2)Vented emissions means intentional or designed releases of natural gas or hydrocarbon gas, not including stationary combustion flue gas, including process designed flow to the atmosphere through seals or vent pipes, equipment blowdown for maintenance, and direct venting of gas used to power equipment, such as pneumatic devices.
(b)In regulations implementing a market-based compliance mechanism pursuant to this part, the state board shall include vented or fugitive emissions of natural gas as counting against the compliance obligation of covered entities engaged in the extraction, distribution, or transmission of natural gas under the mechanism.
SEC. 3.Section 747.2 is added to the Public Utilities Code, to read:747.2.(a)For purposes of this section, the following definitions apply:
(1)Fugitive emissions has the same meaning as set forth in Section 39023.3 of the Health and Safety Code.
(2)Vented emissions means intentional or designed releases of natural gas or hydrocarbon gas, not including stationary combustion flue gas, including process designed flow to the atmosphere through seals or vent pipes, equipment blowdown for maintenance, and direct venting of gas used to power equipment, such as pneumatic devices.
(b)In establishing rates for gas corporations, the commission shall not consider the systemic natural gas losses in the form of fugitive or vented emissions occurring during the injection, storage, transmission, or distribution of the natural gas.
(c)(1)This section does not prohibit gas corporations from using ratepayer funds to repair systemic natural gas leaks or to improve industry practices to reduce or eliminate vented or fugitive emissions.
(2)This section does not prohibit gas corporations from recovering their costs incurred in compliance with regulations adopted pursuant to Section 38572 of the Health and Safety Code.
|
Date
|
Status
|
|---|---|
| Aug 15, 2016 | From committee: Do pass as amended. (Ayes 13. Noes 6.) (August 10). |
| May 31, 2016 | Read second time and amended. Ordered to third reading. |
| Jun 1, 2016 | Read third time. Passed. (Ayes 28. Noes 11. Page 4099.) Ordered to the Assembly. |
| Jun 1, 2016 | Read third time. Passed. (Ayes 28. Noes 11.) Ordered to the Assembly. |
| Jun 2, 2016 | In Assembly. Read first time. Held at Desk. |
| Jun 13, 2016 | Referred to Com. on U. & C. |
| Jun 30, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 5.) (June 29). Re-referred to Com. on APPR. |
| Aug 3, 2016 | August 3 hearing postponed by committee. |
| Aug 3, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| May 27, 2016 | From committee: Do pass as amended. (Ayes 5. Noes 2.) (May 27). |
| Aug 16, 2016 | Read second time and amended. Ordered to second reading. |
| Aug 17, 2016 | Read second time. Ordered to third reading. |
| Aug 19, 2016 | Ordered to third reading. |
| Aug 19, 2016 | Read third time and amended. |
| Aug 19, 2016 | Read third time and amended. (Ayes 73. Noes 0. Page 5971.) |
| Aug 29, 2016 | Motion to reconsider made by Assembly Member Mullin. |
| Aug 29, 2016 | Read third time. Refused passage. |
| Apr 12, 2016 | Set for hearing April 20. |
| Feb 22, 2016 | From printer. May be acted upon on or after March 23. |
| Feb 22, 2016 | Read first time. |
| Mar 10, 2016 | Referred to Coms. on E., U., & C. and E.Q. |
| Mar 17, 2016 | Set for hearing April 5. |
| Mar 28, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U., & C. |
| Apr 6, 2016 | From committee: Do pass as amended and re-refer to Com. on E.Q. (Ayes 8. Noes 1. Page 3393.) (April 5). |
| Apr 6, 2016 | From committee: Do pass as amended and re-refer to Com. on E.Q. (Ayes 8. Noes 1.) (April 5). |
| Apr 7, 2016 | Read second time and amended. Re-referred to Com. on E.Q. |
| Feb 19, 2016 | Introduced. To Com. on RLS. for assignment. To print. |
| Apr 21, 2016 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 3644.) (April 20). |
| Apr 21, 2016 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 20). |
| Apr 25, 2016 | Read second time and amended. Re-referred to Com. on APPR. |
| May 6, 2016 | Set for hearing May 16. |
| May 16, 2016 | May 16 hearing: Placed on APPR. suspense file. (Ayes 7. Noes 0.) |
| May 20, 2016 | Set for hearing May 27. |
| May 27, 2016 | From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4011.) (May 27). |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 29, 2016 | SB 1441 Leno Senate Third Reading By MULLIN | Assembly Floor |
Failed |
|
| Aug 19, 2016 | SB 1441 Leno Senate Third Reading By TRANS. Amendment Set #1 | Assembly Floor |
Passed |
|
| Aug 10, 2016 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 29, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Utilities and Commerce |
Passed |
|
| Jun 1, 2016 | Senate 3rd Reading SB1441 Leno | Senate Floor |
Passed |
|
| May 27, 2016 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| May 16, 2016 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 20, 2016 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Environmental Quality |
Passed |
|
| Apr 5, 2016 | Do pass as amended, but first amend, and re-refer to the Committee on [Environmental Quality] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Lung Association in California | ** Support | Jun 1, 2016 |
| Bay Area Air District | * Support | Apr 5, 2016 |
| California Interfaith Power & Light | ** Support | Jun 29, 2016 |
| California League Of Conservation Voters | ** Support | Jun 29, 2016 |
| Clean Water Action | ** Support | Jun 29, 2016 |
| Consumer Federation Of California | ** Support | Jun 29, 2016 |
| Engineers and Scientists of California | ** Support | Jun 29, 2016 |
| Environment California | ** Support | Jun 1, 2016 |
| Environmental California | ** Support | Jun 29, 2016 |
| Environmental Defense Fund | * Support | Aug 10, 2016 |
| Moms Clean Air Force | ** Support | Jun 29, 2016 |
| Pacific Gas & Electric Company | * Against | Aug 10, 2016 |
| Sierra Club California | ** Support | Jun 29, 2016 |
| Southern California Gas Company | * Against | Aug 10, 2016 |
| The Utility Reform Network | * Support | Apr 5, 2016 |
| U. & C. | ** Against | Jun 29, 2016 |
| Union Of Concerned Scientists | ** Support | Jun 29, 2016 |
| Utility Workers Union of America | ** Support | Jun 29, 2016 |
SENATE THIRD READING
STR Bill Id:SB 1441
Author:(Leno and Pavley)
As Amended Ver:August 19, 2016
Majority vote
SENATE VOTE: 28-11
Committee | Votes | Ayes | Noes |
Utilities | 10-5 | Gatto, Burke, Eggman, Cristina Garcia, Eduardo Garcia, Roger Hernández, Quirk, Santiago, Ting, Williams | Patterson, Chávez, Dahle, Hadley, Obernolte |
Appropriations | 13-6 | Gonzalez, Bloom, Bonilla, Bonta, Calderon, Eggman, Eduardo Garcia, Holden, Quirk, Santiago, Weber, Wood, Chu | Bigelow, Daly, Gallagher, Jones, Obernolte, Wagner |
SUMMARY: Prohibits, to the extent feasible, the California Public Utilities Commission (CPUC) from allowing gas corporations to seek or receive cost recovery from ratepayers for the value of natural gas lost to the atmosphere from certain natural gas facilities when establishing rates in an individual rulemaking proceeding or in general rate cases. This prohibition applies to the following facilities:
- CPUC-regulated gas pipeline facilities;
- Above-ground storage facilities;
- Underground storage facilities;
- Processing facilities;
- Facilities used for the transportation of natural gas; and,
- Facilities used for the delivery of natural gas.
This bill does not apply to "natural gas lost to the atmosphere resulting from an act of God."
FISCAL EFFECT: According to the Assembly Appropriations Committee, costs to the CPUC will be minor and absorbable.
COMMENTS:
- Purpose: According to the author, enough natural gas is lost each year to fuel six million homes. In the United States last year, this lost gas had the same negative impact on the climate as the annual carbon emissions of 117 million cars – roughly half the cars in the country. The author contends that preventing cost recovery from ratepayers of lost natural gas creates an added incentive to repair leaks to the maximum extent feasible.
- Methane Emission Reduction: Methane is a potent greenhouse gas, with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year period. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Methane emissions result from unintentional or intentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases occur when there is a need to vent natural gas to reduce excess pressure on pipeline infrastructure when such pressure presents a safety risk.
Analysis Prepared by: Darion Johnston / U. & C. / (916) 319-2083 FN: 0004715
SENATE THIRD READING
STR Bill Id:SB 1441
Author:(Leno and Pavley)
As Amended Ver:August 16, 2016
Majority vote
SENATE VOTE: 28-11
Committee | Votes | Ayes | Noes |
Utilities | 10-5 | Gatto, Burke, Eggman, Cristina Garcia, Eduardo Garcia, Roger Hernández, Quirk, Santiago, Ting, Williams | Patterson, Chávez, Dahle, Hadley, Obernolte |
Appropriations | 13-6 | Gonzalez, Bloom, Bonilla, Bonta, Calderon, Eggman, Eduardo Garcia, Holden, Quirk, Santiago, Weber, Wood, Chu | Bigelow, Daly, Gallagher, Jones, Obernolte, Wagner |
SUMMARY: Prohibits, to the extent feasible, the California Public Utilities Commission (CPUC) from allowing gas corporations to seek or receive cost recovery from ratepayers for the value of natural gas lost to the atmosphere from certain natural gas facilities when establishing rates in an individual rulemaking proceeding or in general rate cases. This prohibition applies to the following facilities:
- CPUC-regulated gas pipeline facilities;
- Above-ground storage facilities;
- Underground storage facilities;
- Processing facilities;
- Facilities used for the transportation of natural gas; and,
- Facilities used for the delivery of natural gas.
This bill does not apply to "a natural gas lost to the atmosphere resulting from an act of God."
FISCAL EFFECT: According to the Assembly Appropriations Committee, costs to the CPUC will be minor and absorbable.
COMMENTS:
- Purpose: According to the author, enough natural gas is lost each year to fuel six million homes. In the United States last year, this lost gas had the same negative impact on the climate as the annual carbon emissions of 117 million cars – roughly half the cars in the country. The author contends that preventing cost recovery from ratepayers of lost natural gas creates an added incentive to repair leaks to the maximum extent feasible.
- Methane Emission Reduction: Methane is a potent greenhouse gas, with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year period. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Methane emissions result from unintentional or intentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases occur when there is a need to vent natural gas to reduce excess pressure on pipeline infrastructure when such pressure presents a safety risk.
Analysis Prepared by: Darion Johnston / U. & C. / (916) 319-2083 FN: 0004406
Date of Hearing: August 10, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SBPCA Bill Id:SB 1441
Author:(Leno) – As Amended Ver:August 3, 2016
Policy Committee: | Utilities and Commerce | Vote: | 10 - 5 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill prohibits the California Public Utilities Commission (PUC) from allowing gas corporations to seek or receive cost recovery from ratepayers, for the value of natural gas lost to the atmosphere from certain natural gas facilities, when establishing rates in an individual rulemaking proceeding or in general rate cases. This prohibition applies to the following facilities:
- PUC-regulated gas pipeline facilities;
- Above-ground storage facilities;
- Underground storage facilities;
- Processing facilities;
- Facilities used for the transportation of natural gas;
- Facilities used for the delivery of natural gas;
This bill does not apply to "a natural gas lost to the atmosphere resulting from an act of God."
FISCAL EFFECT:
Minor and absorbable PUC costs.
COMMENTS:
- Purpose. According to the author, enough natural gas is lost each year to fuel 6 million homes. Last year, in the United States, this lost gas had the same negative impact on the climate as the annual carbon emissions of 117 million cars, or roughly half the cars in the country. The author contends that preventing cost recovery from ratepayers of lost natural gas creates an added incentive to repair leaks to the maximum extent feasible.
This bill clarifies that utility companies should be prevented from charging ratepayers for this lost gas.
- Methane Emission Reduction. Methane is a potent greenhouse gas (GHG), with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year timespan. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Methane emissions result from unintentional or intentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases occur when there is a need to vent natural gas to reduce excess pressure on pipeline infrastructure when such pressure presents a safety risk.
- Previous Legislation. SB 1371 (Leno), Chapter 525, Statutes of 2014, requires the PUC, in consultation with ARB, to adopt rules and procedures to minimize natural gas leaks within gas pipeline facilities regulated by the PUC. As part of this effort, the PUC is developing a methodology to calculate the lost and unaccounted for gas specific to PUC-regulated gas pipelines. The PUC opened a rulemaking proceeding in January 2015 to instruct the ongoing implementation of this statue with an expected decision in the first quarter of 2017.
In order to allow for sufficient time for the new procedures to minimize leaks and the methodologies to calculate unaccounted for gas to be implemented, the Chair is recommending a two-year delay in implementation on this bill.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Mike Gatto, Chair
SBPCA Bill Id:SB 1441
Author:(Leno) – As Amended Ver:May 31, 2016
SENATE VOTE: 28-11
SUBJECT: Natural gas: methane emissions
SUMMARY: Prohibits gas corporations from using ratepayer dollars to recover costs associated with fugitive or unplanned natural gas leaks during the extraction, production, storage, processing, transportation, and delivery of natural gas. Requires the California Public Utilities Commission (CPUC) to establish rates for gas corporations in furtherance of this requirement, as specified.
EXISTING LAW:
- Establishes the California Global Warming Solutions Act of 2006. Requires the California Air Resource Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level, approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020, and adopt GHG emissions reductions measures by regulation. Defines methane as a greenhouse gas. (Health and Safety Code Section 38500 et seq.)
- Requires the ARB to develop a comprehensive strategy to reduce emissions of short-lived climate pollutants in the state. (Health and Safety Code Section 39730)
- Requires the CPUC, in consultation with the ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities while giving priority to safety, reliability, and affordability of service. (Public Utilities Code Section 975)
- Requires gas corporations to file a report that includes a summary of utility leak management practices, list of leaks, and a best estimate of gas loss due to leaks. (Public Utilities Code Section 975)
- Requires adopted rules and procedures to accomplish the following: prevent and repair gas leaks in CPUC-regulated intrastate gas transmission and distribution lines in a technologically feasible and cost-effective manner; develop metrics to quantify the amount of gas leaking from pipeline facilities; evaluate and track gas leaks geographically and over time so data may be incorporated into ARB's mandatory GHG emission reporting. (Public Utilities Code Section 975)
- Requires the CPUC to provide revenues for all activities identified and required to address leaks, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes, among other provisions. (Public Utilities Code Section 977)
- Establishes that the CPUC is the state authority responsible for regulating and enforcing intrastate gas pipeline transportation and pipeline facilities pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code, including the development, submission, and administration of a state pipeline safety program certification for natural gas pipelines pursuant to Section 60105 of that chapter. (Public Utilities Code Section 955 et seq.)
- Establishes the Division of Oil, Gas, and Geothermal Resources (DOGGR) in the Department of Conservation at the Natural Resources Agency as the state authority responsible for regulating oil and gas, including natural gas storage wells. Provides the division’s leader with broad authority to supervise oil and gas operations to prevent damage to life, health, property and natural resources, among other requirements. (Public Resources Code Section 3100 et seq.)
- Authorizes the CPUC to fix rates, establish rules, and examine records for all public utilities subject to its jurisdiction, including gas corporations. (California Constitution Article XII, Section 6)
FISCAL EFFECT: Unknown.
COMMENTS:
- Author's Statement: According to the author, "SB 1441 leverages recent regulatory and technological advances in the methodology of quantifying natural gas leaks to achieve meaningful and effective reductions in one of the most common and potent climate changing pollutants. SB 1441 prohibits the [CPUC] from including in the prices charged to ratepayers the cost of natural gas lost to the atmosphere during the injection, storage, transmission, or distribution of natural gas. Methane emissions represent a threat to our climate and a waste of natural gas, a valuable energy resource. Enough natural gas is lost each year to fuel 6 million homes. In the U.S. last year alone, this lost gas had the same negative impact on the climate as the annual carbon emissions of 117 million cars, or roughly half the cars in the United States. In 2014, I authored SB 1371 that required the CPUC to open a proceeding to adopt rules and procedures that minimize natural gas leaks from PUC-regulated gas pipeline facilities, with the goal of reducing GHG emissions. Currently underway, this proceeding has produced formulas for quantifying lost gas that can be used to determine what gas utilities should not recover. SB 1441 clarifies that utility companies should be prevented from charging ratepayers for this lost gas. Preventing cost recovery from ratepayers of lost natural gas creates an added incentive to repair leaks to the maximum extent feasible."
- Methane Emissions: Methane is the primary component of natural gas. It can also be produced biologically under anaerobic conditions in animals such as cattle and sheep, landfills, and waste handling. Atmospheric methane concentrations are increasing as a result of agriculture, fossil fuel extraction and distribution, and waste generation and processing. Methane is a short-lived climate pollutant that can persist in the atmosphere for about 12 years. Like other GHGs, methane warms the atmosphere by blocking infrared radiation (heat) that is re-emitted from the earth's surface from reaching space. Methane is a potent GHG, with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year timespan. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Ozone itself is a powerful short-lived climate pollutant as well as a regional ground level air pollutant (also known as smog) which negatively impacts human health and can lead to asthma attacks, hospitalizations, and even premature death. About two-thirds of the rise in global levels of background ozone can be attributed to methane emissions.
- Methane Emission Reduction: Methane emissions can be intentional or unintentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases occur when there is a need to vent natural gas to reduce excess pressure on pipeline infrastructure when such pressure presents a safety risk.
Currently, there are various regulatory initiatives at the state level related to air pollution, GHGs, and increased use of renewable energy sources. Initiatives at the federal level include efforts to reduce short-lived climate pollution, improvements to pipeline safety in response to the fatal Pacific Gas and Electric Company San Bruno explosion of 2010, legislative requirements to address natural gas leaks, emergency regulations to address storage well integrity, and proposals to address methane emissions.
- SB 1371 (Leno): In 2014, SB 1371 (Leno), Chapter 525, Statutes of 2014, became law. This statute requires the CPUC, in consultation with ARB, to adopt rules and procedures to minimize natural gas leaks within gas pipeline facilities regulated by the CPUC. The rules and procedures instruct the development of metrics to quantify the amount of gas leaking from pipeline facilities. With this data, fugitive emissions may be evaluated and tracked geographically and over time, and may be incorporated into ARB's mandatory GHG emission reporting. To the extent feasible, SB 1371 also requires the owner of each intrastate gas transmission or distribution line regulated by the CPUC to calculate and report to the CPUC and ARB a baseline system-wide leak rate, along with any data and computer models used to make that calculation. As part of this effort, the CPUC is developing a methodology to calculate the lost and unaccounted for gas specific to CPUC-regulated gas pipelines. The CPUC opened a rulemaking proceeding in January 2015 to instruct the ongoing implementation of this statue with an expected decision in the first quarter of 2017.
- Aliso Canyon Gas Leak: In response to the recent natural gas leak at the Aliso Canyon storage well facility controlled by Southern California Gas Company, DOGGR adopted emergency regulations of oil and gas storage facilities. The new regulations will remain in effect for six months beginning February 5, 2016, but may be extended. DOGGR is requiring increased inspection and monitoring requirements for all wells, regular testing of all safety valves, the development of minimum and maximum pressure limits for each gas storage facility in the state, and the establishment of a comprehensive risk management plan that evaluates and prepares for risks at each facility, including corrosion of potential pipes and equipment.
- Gas Pipeline Safety Requirements: In addition to the Federal Pipeline Safety Regulations, the CPUC enforces statutes and rules (General Order 112-E) which establish minimum requirements for the design, construction, quality of materials, locations, testing, operations and maintenance of facilities used in the gathering, transmission and distribution of gas or in liquefied natural gas facilities. These regulations are meant to safeguard life or limb, health, property and public welfare and to provide that adequate service will be maintained by gas utilities operating under the jurisdiction of the CPUC.
In February 2016, ARB proposed new emissions regulations for oil and gas facilities aimed at tackling fugitive and vented methane emissions in the state. The proposed regulations require underground storage well facility owners to develop a plan for surface-leak monitoring on a continuous or daily basis, and require that intentional venting be limited to the use of no-vent devices, vapor collection, and other measures.
In August 2015, the United States Environmental Protection Agency proposed standards to directly reduce methane emissions from the oil and gas sector to help address climate change. The proposed requirements address emissions from production to transmission, including: requiring leak detection and repair at well sites and other points across the transmission and storage segments; new standards to reduce methane emissions from hydraulically fractured oil wells; and emission guidelines to reduce smog-forming emissions from existing oil and gas sources in areas where smog reaches unhealthy levels.
- Protecting Ratepayers: This bill continues efforts by the state and federal government to reduce natural gas leaks and methane emissions by preventing utilities from recovering costs from ratepayers associated with the value of natural gas lost during the production and delivery cycle, to the extent feasible as determined by the CPUC. The author's intent is to eliminate most, if not all, fugitive emissions during the full cycle of natural gas extraction, production, distribution and delivery. In recognition of logistical limitations, this bill provides the CPUC with discretion to determine what is feasible to recover in rates since the natural gas system runs as a market. As such, the utility does not control aspects of the system outside of the facilities it owns and operates in California. Further, it may not be feasible, or cost-effective, to capture 100% of all potential lost gas during the full cycle of the natural gas system. The current state of emissions accounting is very uncertain due to the complexities of the natural gas system and the many entities involved from the gas producers, marketers, purchasers.
- Related Legislation:
SB 1383 (Lara) of 2016: Requires the state board to approve and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane of 40%, hydrofluorocarbon gases of 40%, and anthropogenic black carbon of 50% below 2013 levels by 2030, as specified. Pending in the Assembly.
- Prior Legislation:
AB 1496 (Thurmond), Chapter 604, Statutes of 2015: Requires the ARB to monitor hot-spots in the state with high methane emissions, gather information for purposes of conducting analyses of life-cycle GHG emissions of natural gas imports, update relevant policies and programs based on those updated life-cycle analyses, and review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants.
SB 1371 (Leno), Chapter 525, Statutes of 2014: Requires the CPUC to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities with the goal of reducing GHG emissions.
SB 605 (Lara), Chapter 523, Statutes of 2014: Requires the ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, including methane emissions, in the state.
REGISTERED SUPPORT / OPPOSITION:
Support
California Interfaith Power & Light
California League of Conservation Voters
Clean Water Action
Consumer Federation of California
Engineers and Scientists of California
Environmental California
Environmental Defense Fund
Moms Clean Air Force
Sierra Club California
Union of Concerned Scientists
Utility Workers Union of America
Opposition
Pacific Gas and Electric Company
Analysis Prepared by: Darion Johnston / U. & C. / (916) 319-2083
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 1441
:
SENATE ENERGY, U. & C. COMMITTEE: 8-1, 4/5/16
AYES: Hueso, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire, Pavley
NOES: Morrell
NO VOTE RECORDED: Gaines, Wolk
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 4/20/16
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
DIGEST: This bill requires the California Public Utilities Commission (CPUC) in establishing rates for gas corporations, to the extent feasible as determined by the CPUC, to prohibit gas corporations from seeking or receiving recovery from ratepayers the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of natural gas.
Existing law:
- Establishes the California Global Warming Solutions Act of 2006 and requires the California Air Resource Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. Defines methane as a greenhouse gas. (Health and Safety Code §38500 et seq.)
- Requires the ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants in the state. (Health and Safety Code §39730)
- Requires the CPUC, in consultation with the ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities while giving priority to safety, reliability, and affordability of service. (Public Utilities Code §975)
- Requires gas corporations to file a report that includes a summary of utility leak management practices, list of leaks and a best estimate of gas loss due to leaks. (Public Utilities Code §975)
- Requires the rules and procedures adopted to accomplish specified actions, including: provide for the maximum technologically feasible and cost-effective avoidance and repair of leaks and leaking components in CPUC-regulated gas pipeline facilities that are intrastate transmission and distribution lines; and establish protocols and procedures for the development and use of metrics to quantify the volume of emissions from leaking gas pipeline facilities and for evaluating and tracking leaks geographically and over time that may be incorporated into the ARB’s mandatory GHG emission reporting. (Public Utilities Code §975)
- Requires the CPUC to consider as part of its accountability for rate revenues and best value for ratepayers, consistent with existing ratemaking procedures and authority, to provide revenues for all activities identified and required to address leaks, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes, among other provisions. (Public Utilities Code §977)
- Establishes that the CPUC is the state authority responsible for regulating and enforcing intrastate gas pipeline transportation and pipeline facilities pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code, including the development, submission, and administration of a state pipeline safety program certification for natural gas pipelines pursuant to Section 60105 of that chapter. (Public Utilities Code §955 et seq.)
- Establishes that the Division of Oil, Gas, and Geothermal Resources (DOGGR) in the Department of Conservation at the Natural Resources Agency is the state authority responsible for regulating oil and gas, including natural gas storage wells. Provides the division’s leader, the state’s oil and gas supervisor, with broad authority to supervise oil and gas operations to prevent damage to life, health, property and natural resources, among other requirements. (Public Resources Code §3100 et seq.)
- Authorizes the CPUC to fix rates, establish rules, and examine records for all public utilities subject to its jurisdiction, including gas corporations. (California Constitution Article XII, §6)
This bill requires the CPUC in establishing rates for gas corporations, to the extent feasible as determined by the CPUC, to prohibit gas corporations from seeking or receiving recovery from ratepayers the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of natural gas.
Background
Natural gas. Natural gas is often referred to as the fossil fuel of choice because it is lighter and burns cleaner than oil and coal. Natural gas is used to fuel power plants that generate electricity, as a heating and cooking fuel in homes and industrial processes, and as a transportation fuel. According to the U.S. Energy Information Agency, California is the second largest consumer of natural gas as compared to other states, with Texas being the top consumer. The majority of the natural gas used in California, about 90 percent, is imported from outside the state. Most of the imports come from the Southwest and the Rocky Mountains, with an additional portion coming from Canada. In California, just over 40 percent of natural gas is used to generate electricity. In recent years, there’s been a growing reliance on natural gas-fired power plants to meet local reliability needs, to provide emergency system support and to provide additional services to keep the system running reliably. When generation from renewable sources of energy decline but energy load does not, other generation sources must be called on to maintain the electric grid. The increased dependency on natural gas-fired generation can be attributed to the shift away from more carbon-intensive resources (such as coal), effects of the drought which has reduced hydroelectric power supply, the retirement of the San Onofre Nuclear Generating Station, and increased use of other renewables, including solar and wind, which are intermittent resources. As intermittent resources, renewable generation can fall off and turn up quickly based on factors such as cloud cover that can block solar rays and intermittent wind movement. As such, other resources, particularly those fired by natural gas, are needed to ramp up production quickly, as the renewables generation falls off, and be turned down quickly as the renewables production increases. The result is greater variation in gas load, as well as, large draws on the gas system, sometimes very quickly. [California Energy Commission. AB 1257 Natural Gas Act Report: Strategies to Maximize the Benefits Obtained from Natural Gas as an Energy Source. Final Staff Report. November 2015. http://docketpublic.energy.ca.gov/ PublicDocuments/15-IEPR-04/TN206470_20151030T160233_STAFF.pdf]
About methane emissions. Methane is the primary component of natural gas and is also produced biologically under anaerobic conditions in animals with a four-part stomach (such as cattle and sheep), landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Methane is a short-lived climate pollutant with an atmospheric lifetime of about 12 years. Like other GHGs, methane warms the atmosphere by blocking infrared radiation (heat) that is re-emitted from the earth’s surface from reaching space. Methane is a potent GHG, with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year timespan. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Ozone itself is a powerful short-lived climate pollutant as well as a regional ground level air pollutant (a.k.a. smog) which negatively impacts human health and can lead to asthma attacks, hospitalizations, and even premature death. About two-thirds of the rise in global levels of background ozone can be attributed to methane emissions.
Efforts to address methane emissions. Methane emissions come from both intentional and unintentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from multiple sources and phases of the natural gas system, such as from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases are purposeful and known emissions that occur in the normal operations of the natural gas system, for example, the need to vent natural gas when pressures reach levels where there could be a safety risk. [Ibid.]
There are many ongoing regulatory initiatives currently being undertaken by various agencies in the state (mostly relating to air pollution, greenhouse gases, and the increased use of renewable energy sources), as well as, the federal government to address methane emissions from the natural gas system both directly and indirectly. These include: efforts to reduce short-lived climate pollution, improvements to pipeline safety requirements largely in response to the 2010 PG&E San Bruno fatal explosion, legislative requirements to address natural gas leaks, emergency regulations to address storage well integrity, federal proposals to address methane emissions and others.
Addressing leaks from natural gas system. In an effort to address systemic natural gas leaks from an aging infrastructure, as well as, climate impacts due to methane, SB 1371 (Leno, Chapter 525, Statutes of 2014) requires the CPUC, in consultation with ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities. SB 1371 requires the rules and procedures include procedures for the development of metrics to quantify the volume of emissions from leaking gas pipeline facilities, and for evaluating and tracking leaks geographically and over time that may be incorporated into ARB’s mandatory GHG emission reporting. SB 1371 also requires, to the extent feasible, the owner of each CPUC-regulated gas pipeline facility that is an intrastate transmission or distribution line to calculate and report to the CPUC and ARB a baseline system-wide leak rate, along with any data and computer models used in making that calculation. The CPUC is currently in the midst of implementing the requirements of SB 1371, having opened a rulemaking proceeding in January 2015 with an expected decision in the first quarter of 2017. As part of this effort, the CPUC is developing a methodology to calculate the lost and unaccounted for gas specific to CPUC-regulated gas pipelines.
In response to the state of emergency from the recent natural gas leak at the Southern California Gas Company’s Aliso Canyon storage well facility, DOGGR has adopted new emergency regulations of oil and gas storage facilities. The new regulations are in effect for six months beginning February 5, 2016, but can be extended. DOGGR is requiring increased inspections and monitoring requirements for all wells, regular testing of all safety valves, minimum and maximum pressure limits for each gas storage facility in the state, and each storage facility to establish a comprehensive risk management plan that evaluates and prepares for risks at each facility, including corrosion of potential pipes and equipment.
Additionally, the CPUC enforces statutes and rules (General Order 112-E) which establish, in addition to the Federal Pipeline Safety Regulations that CPUC enforces, minimum requirements for the design, construction, quality of materials, locations, testing, operations and maintenance of facilities used in the gathering, transmission and distribution of gas and in liquefied natural gas facilities to safeguard life or limb, health, property and public welfare and to provide that adequate service will be maintained by gas utilities operating under the jurisdiction of the CPUC.
In February of this year, ARB proposed new emissions regulations for oil and gas facilities aimed at tackling fugitive and vented methane emissions in the state. The proposed regulations require underground storage well facility owners to develop a plan for surface-leak monitoring on a continuous or daily basis, and require that intentional venting be limited to the use of no-vent devices, vapor collection, and other measures.
In August 2015, the United States Environmental Protection Agency proposed standards to directly reduce methane emissions from the oil and gas sector to help address climate change. The standards are strategies to support the Administration’s goal of reducing methane emissions from the oil and gas sector by 40-45 percent from 2012 levels by 2025. The proposed requirements address emissions from the production to transmission segments, including: expanding the federal New Source Performance Standards for the oil and gas industry to include methane emissions directly upstream; require leak detection and repair at well sites, gathering and boosting stations and compressor stations across the transmission and storage segments; new standards to reduce methane emissions from hydraulically fractured oil wells; and emission guidelines to reduce smog-forming emissions from existing oil and gas sources in areas where smog reaches unhealthy levels.
Protecting Ratepayers. This bill builds off the many efforts by the state and federal government to reduce natural gas leaks and the resulting methane emissions into the atmosphere by preventing utilities from receiving recovery from ratepayers the value of natural gas lost during the production and delivery cycle, to the extent feasible as determined by the CPUC. The author’s intent is to eliminate all, if not, most, fugitive and other emissions during the full life-cycle of the natural gas extraction, production, distribution and delivery. In recognition of current limitations, this bill appropriately provides the CPUC with discretion to determine what is feasible to recover in rates since the natural gas system runs as a market and, as such, the utility does not control all aspects of the system, beyond the facilities it owns and operates in the state. Additionally, it may not be feasible, or cost-effective, to capture 100 percent of all potential lost gas during the full life-cycle of the natural gas system. Moreover, the current state of emissions accounting is very uncertain due to the complexities of the natural gas system and the many entities involved from the gas producers, marketers, purchasers, etc.
Related/Prior Legislation
SB 1383 (Lara, 2016) requires the state board to approve and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane of 40 percent, hydrofluorocarbon gases of 40 percent, and anthropogenic black carbon of 50 percent below 2013 levels by 2030, as specified. The bill is on the Senate Floor.
AB 1496 (Thurmond, Chapter 604, Statutes of 2015) required the ARB to monitor high-emission methane hot-spots in the state, consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports, update relevant policies and programs based on those updated life-cycle analyses, and review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants.
SB 1371 (Leno, Chapter 525, Statutes of 2014) required the CPUC to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities with the goal of reducing GHG emissions.
SB 605 (Lara, Chapter 523, Statutes of 2014) required the ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, including methane emissions, in the state.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, minor and absorbable costs to the CPUC.
SUPPORT: (Verified 5/31/16)
California Interfaith Power & Light
California League of Conservation Voters
Clean Water Action
Consumer Federation of California
Engineers & Scientists of California
Environment California
Environmental Defense Fund
Moms Clean Air Force
Sierra Club California
Union of Concerned Scientists
Utility Workers Union of America
OPPOSITION: (Verified 5/31/16)
Pacific Gas and Electric Company
ARGUMENTS IN SUPPORT: The Environmental Defense Fund states: “since utilities are compensated for the gas they lose, utility incentive to reduce leakage above and beyond regulatory requirements are muted, thus reducing overall signals to minimize overall emissions. SB 1441 removes this incentive in order to increase the overall incentive to minimize methane pollution. California’s strategies [to reduce methane pollution] stop at the border and fail to consider 91 percent of gas California imported into the state – and the 20 and 100 million metric tons of carbon dioxide equivalent pollution associated with it.”
Utility Workers Union of America and Engineers & Scientists of California argue “it is high time that the safety culture of our gas utilities be fundamentally shifted to a system that creates strong incentives to stop gas leaks rather than financially rewarding them.”
ARGUMENTS IN OPPOSITION: According to PG&E, they oppose SB 1441 stating it can only control emissions under its jurisdiction. PG&E argues “SB 1441 disallows cost recovery for fugitive methane emissions that occur outside of California on pipelines and equipment not owned or operated by the gas corporation. It is not clear how this provision would be implemented. The CPUC has a methodology to account for lost gas known as lost and unaccounted for gas, of which fugitive emissions on CPUC-regulated pipelines are a small portion. SB 1441 reaches beyond the scope of the CPUC’s jurisdiction and in doing so penalizes the gas corporation for leaks outside of our control.”
6/1/16 12:24:44
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SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1441 (Leno) - Natural gas: methane emissions
Version: April 25, 2016 | Policy Vote: E., U., & C. 8 - 1, E.Q. 5 - 2 |
Urgency: No | Mandate: No |
Hearing Date: May 27, 2016 | Consultant: Narisha Bonakdar |
Bill Summary:
- Requires the Air Resources Board (ARB), in consultation with the California Public Utilities Commission (CPUC) and other relevant agencies, to adopt by regulation methane emissions reductions measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2013 methane emissions levels by 2025. The bill also prohibits the CPUC from allowing gas corporations to recover from ratepayers the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas when establishing rates for gas corporations in an individual rulemaking proceeding or in general rate cases.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal Impact:
Minor and absorbable costs to the CPUC.
Committee Amendments:
- Removes the provisions related to the systemwide reduction in methane emissions of at least 40% below 2013 methane emissions levels by 2025.
-- END --
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1441 (Leno) - Natural gas: methane emissions
Version: April 25, 2016 | Policy Vote: E., U., & C. 8 - 1, E.Q. 5 - 2 |
Urgency: No | Mandate: No |
Hearing Date: May 16, 2016 | Consultant: Narisha Bonakdar |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
- Requires the ARB, in consultation with the CPUC and other relevant agencies, to adopt by regulation methane emissions reductions measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2013 methane emissions levels by 2025. The bill also prohibits the CPUC from allowing gas corporations to recover from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas when establishing rates for gas corporations in an individual rulemaking proceeding or in general rate cases.
Fiscal Impact:
Up to $1.15 million annually (COI) for ARB staffing costs.
One-time cost of $500,000 to establish the natural gas procurement tracking system, and ongoing costs of $100,000 annually to maintain the system (COI).
Approximately $6,000 annually (Out-of-State travel funds) for staff to travel to out-of-state facilities.
Minor and absorbable costs to the CPUC.
* COI = Cost of Implementation Fee
Background:
- Fugitive methane from the natural gas sector. A growing body of evidence suggests that national and state estimates of methane emissions have been significantly underestimated. Studies suggest that U.S. methane emissions from all sources are likely anywhere from 25 to 75% higher than EPA estimates, and they note the discrepancy may in large part be due to a small number of very large leaks from natural gas production and distribution system.
Additionally, several recent analyses of atmospheric measurements in state suggest that actual California methane emissions may be 30 to 70% higher than estimated in ARB’s emission inventory. The Short-Lived Climate Pollutant draft strategy notes that several efforts are underway at the CEC and ARB to improve emissions monitoring to help identify sources of fugitive methane emissions and reduce them, including from oil and gas operations. Additionally, ARB and NASA’s Jet Propulsion Laboratory are collaborating to identify large “hot spot” methane sources through a systematic survey of high methane emitters throughout California using both aerial and ground measurements.
By state, California is the second largest user of natural gas in the country (Texas is the largest user). Although the state has worked to reduce fugitive methane emissions from various sources over recent years, including new efforts to reduce fugitive leaks from natural gas infrastructure in the state, 91% of the natural gas used in California is imported.
State efforts to reduce natural gas system leaks. SB 1371. In an effort to address systemic natural gas leaks from an aging infrastructure as well as address climate impacts due to methane, SB 1371 (Leno, Chapter 525, Statutes of 2014) requires CPUC, in consultation with ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities. SB 1371 requires the rules and procedures include procedures for the development of metrics to quantify the volume of emissions from leaking gas pipeline facilities, and for evaluating and tracking leaks geographically and over time that may be incorporated into ARB’s mandatory GHG emissions reporting. SB 1371 also requires, to the extent feasible, the owner of each commission-regulated gas pipeline facility that is an intrastate transmission or distribution line to calculate and report to the commission and ARB a baseline system-wide leak rate, along with any data and computer models used in making that calculation.
On January 15, 2015, CPUC opened a rulemaking proceeding to implement the requirements of SB 1371, with an expected decision in the first quarter of 2017. On July 7, 2015, CPUC released a scoping memo that raises questions and issues in implementing the legislation to be addressed by the rulemaking. Among many other questions raised, the memo asks how ratepayer and shareholder financial incentives should be aligned when accounting for and paying for “lost gas.”
SB 1441 clarifies this issue by requiring CPUC, to the extent feasible, to prohibit gas corporations from recovering the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of natural gas, from ratepayers.
ARB draft oil and gas regulations. In April of last year, ARB released a draft regulation to address fugitive and vented emissions from new and existing oil and gas facilities, pursuant to authority under AB 32 to regulate GHGs. Specifically, the proposed regulation applies to crude oil and natural gas production, crude oil storage, underground natural gas storage, natural gas processing plants and transmission stations. The draft regulation contains requirements for natural gas underground storage facility well monitoring, restrictions for natural gas venting and specifications for leak detection and repair, as well as other requirements.
Aliso Canyon and DOGGR’s emergency regulation. In response to the state of emergency from the recent natural gas leak at the Southern California Gas Company’s Aliso Canyon storage well facility, the Division of Oil Gas and Geothermal Resources (DOGGR) adopted emergency regulations for oil and gas storage facilities. The new regulations are in effect for six months beginning February 5, 2016, but can be extended. DOGGR is requiring increased inspections and monitoring requirements for all wells, regular testing of all safety valves, minimum and maximum pressure limits for each gas storage facility in the state, and each storage facility to establish a comprehensive risk management plan that evaluates and prepares for risks at each facility, including corrosion of potential pipes and equipment.
National efforts to reduce natural gas sector emissions. In August 2015, the United States Environmental Protection Agency (US EPA) proposed standards to directly reduce methane emissions from the oil and gas sector to help address climate change. The standards are strategies to support the Administration’s goal of reducing methane emissions from the oil and gas sector by 40 to 45% from 2012 levels by 2025. The proposed requirements address emissions from the production to transmission segments, including: expanding the federal New Source Performance Standards for the oil and gas industry to include methane emissions directly upstream; requiring leak detection and repair at well sites, gathering and boosting stations and compressor stations across the transmission and storage segments; new standards to reduce methane emissions from hydraulically fractured oil wells; and emission guidelines to reduce smog-forming emissions from existing oil and gas sources in areas where smog reaches unhealthy levels.
Proposed Law:
- Makes findings and declarations about California’s natural gas usage, impacts of methane, methane leakage during the drilling, production, and transportation of natural gas, and how the accountability measures and initiatives to address imported natural gas will benefit the environment and reduce the leakage associated with the state’s climate programs.
- Requires, by January 1, 2020, the California Air Resources Board (ARB), in consultation with the Public Utilities Commission and other relevant state agencies, to adopt regulations will achieve a reduction in methane emissions of at least 40 percent below 2013 levels for systemwide methane emissions from emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, by 2025.
- Requires that the regulations include: (1) information gathered to determine the 2013 levels for systemwide methane emissions, and (2) interim targets to reach the methane emissions level.
- Requires ARB, in consultation with the CPUC and other relevant state agencies, to consider all of the following:
- Developing new incentives or investment programs to facilitate emissions reductions in basins and fields from which the state receives a significant portion of its natural gas.
- Imposing new requirements on the state’s regulated gas corporations related to natural gas procurement and the tracking of interstate deliveries.
- Modifying the state’s market-based emissions reduction measures, including a market-based compliance mechanism adopted pursuant to Section 38570, to account for and include methane emissions within the compliance obligations of natural gas utilities or fuel importers.
- Participating in or forming interstate and federal working groups, compacts, or agreements.
- Regulations adopted pursuant to subdivision (a) shall be designed in a manner that seeks to minimize the costs and maximize total benefits.
- Specifies that the bill must be implemented to the extent feasible and consistent with law.
- Prohibits the CPUC from allowing gas corporations to recover from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas when establishing rates for gas corporations in an individual rulemaking proceeding or in general rate cases.
Related Legislation:
SB 1371 (Leno, Chapter 525, Statutes of 2014) required the CPUC to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities with the goal of reducing GHG emissions.
SB 605 (Lara, Chapter 523, Statutes of 2014) required the ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, including methane emissions, in the state.
AB 1496 (Thurmond, Chapter 604, Statutes of 2015) required the ARB to monitor high-emission methane hot-spots in the state, consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports, update relevant policies and programs based on those updated life-cycle analyses, and review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants.
SB 1383 (Lara) would require the state board to approve and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane of 40 percent, hydrofluorocarbon gases of 40 percent, and anthropogenic black carbon of 50 percent below 2013 levels by 2030, as specified. Currently on the Suspense File.
Staff Comments: The ARB notes that “Substantial new resources are necessary to perform the tasks required by this bill because it covers imports of natural gas, which comprises approximately 90 percent of all natural gas consumed in California. ARB would need to determine 2013 lifecycle methane emissions from natural gas supplied to the State and the 2025 and interim emissions target reductions, evaluate and implement other alternatives, such as incentive programs, and develop and implement a regulation that includes a methane emissions standard. Staff would also require contract funds to develop a natural gas procurement tracking system (estimated $500,000 to establish the system and $100,000 annually to maintain). Further, staff would be required to travel out of state (three times per year for site visits to the three main pipeline routes for natural gas entering California, gather information on imported gas emissions, and establish the standards required under the bill, as well as provide ongoing implementation, enforcement, and auditing functions upon adoption of the regulation.”
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SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: SB 1441
Author: | Leno, Pavley | ||
Version: | 4/7/2016 | Hearing Date: | 4/20/2016 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Rebecca Newhouse | ||
SUBJECT: Natural gas: methane emissions
ANALYSIS:
Existing law:
- Under the California Global Warming Solutions Act of 2006 (Health and Safety Code (HSC) §38500 et seq.):
- Defines methane, CO2, and other chemicals as a greenhouse gas (GHG).
- Requires the California Air Resources Board (ARB), to determine the 1990 statewide GHG emissions level, and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020.
- Requires ARB to adopt GHG emissions reductions measures by regulation to achieve the 2020 GHG limit.
- Requires ARB to adopt regulations to require the reporting and verification of statewide GHGs.
- Authorizes ARB to include the use of market-based mechanisms to comply with these regulations.
- Requires ARB to complete, by January 1, 2016, a comprehensive strategy to reduce emissions of short-lived climate pollutants in the state (HSC §39730)
- Requires the California Public Utilities Commission (CPUC) to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities. (Public Utilities Code § 975)
- Requires the State Energy Resources Conservation and Development Commission (CEC), beginning in November 2015, to report on strategies to maximize benefits from natural gas as an energy source, and include an evaluation of the benefits and economic cost of proposed strategies, including evaluating the life-cycle GHG emissions from production, transportation, and use of natural gas, in consultation with ARB. (Public Resources Code §25303.5)
- Requires ARB to monitor high-emission methane hot-spots in the state, consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports, and update relevant policies and programs based on those updated life-cycle analyses. (HSC §39731)
This bill:
- Requires the ARB, in consultation with CPUC and other relevant agencies, to adopt by regulation methane emissions reductions measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40% below 2012 methane emissions levels by 2025.
- Requires the regulation adopted to include information acquired as part of ARB’s existing efforts to carry out life-cycle GHG emissions analysis of natural gas imports.
- Requires the regulation to include interim targets to reach the methane emissions goal.
- Requires ARB, in consultation with CPUC and other relevant state agencies, to consider specified approaches in efforts to establish measures for reducing methane emissions, including:
- Developing new incentives and investment programs in basins and fields from which the state receives natural gas;
- Imposing new procurement and tracking requirements of interstate deliveries on the state’s regulated natural gas corporations;
- Modifying the state’s market based-emissions reductions measures to include compliance obligations of natural gas utilities and fuel importers;
- Participating or forming interstate and federal working groups, compacts or agreements; and
- Designing regulations in a manner that seeks to minimize costs and maximize the total benefits.
- Requires CPUC to prohibit gas corporations from seeking or receiving recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of natural gas, to the extent feasible when CPUC establishes rates for gas corporations.
Background
- Short-lived climate pollutants. Greenhouse gases or climate pollutants, such as CO2, work to warm the earth by trapping solar radiation in the earth’s atmosphere. Depending on the molecule, these pollutants can vary greatly in their ability to trap heat and the length of time they remain in the atmosphere. CO2 remains in the atmosphere for centuries, which makes it the most critical greenhouse gas to reduce in order to limit long-term climate change. However, climate pollutants including methane, tropospheric ozone, hydrofluorocarbons (HFCs), and soot (black carbon), are relatively short-lived (anywhere from a few days to a few decades), but when measured in terms of how they heat the atmosphere (global warming potential, or GWP), can be tens, hundreds, or even thousands of times greater than that of CO2. These climate forcers are termed short-lived climate pollutants (SLCPs).
Because SLCPs remain in the atmosphere for a relatively short period of time, but have a much higher global warming potential than CO2, efforts aimed at reducing their emissions in the near term would result in more immediate climate, air quality, and public health benefits, than a strategy focused solely on CO2. According to ARB’s SLCP draft strategy, “while the climate impacts of CO2 reductions take decades or more to materialize, cutting emissions of SLCPs can immediately slow global warming and reduce the impacts of climate change.” Recent research estimates that SCLPs are responsible for about 40% of global warming to date and that actions to significantly reduce SLCP emissions could cut the amount of warming that would occur over the next few decades by half.
According to ARB’s 2015 updated Scoping Plan, methane is one of the three short-lived climate pollutants with the greatest implications for California.
Methane (CH4) is the principal component of natural gas and is also produced biologically under anaerobic conditions in ruminants, landfills, and waste handling. Methane is 84 times more powerful as a global warming pollutant than CO2 on a 20-year time scale. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing.
SB 605 (Lara, Chapter 523, Statutes of 2014) directs ARB to develop a comprehensive short-lived climate pollutant strategy by January 1, 2016. In developing the strategy, ARB is required to complete an inventory of sources and emissions of short-lived climate pollutants in the state based on available data, identify research needs to address data gaps and existing and potential new control measures to reduce emissions. The draft strategy outlines a number of actions to reduce methane emissions.
According to the draft strategy, agriculture represents the largest methane source and accounts for nearly 60% of methane emissions in the state. Landfills are the next largest source of methane at 20%, and methane from pipeline leaks and oil and natural gas extraction make up about 15% of the total.
- Fugitive methane from the natural gas sector. A growing body of evidence suggests that national and state estimates of methane emissions have been significantly underestimated. Studies suggest that U.S. methane emissions from all sources are likely anywhere from 25 to 75% higher than EPA estimates, and they note the discrepancy may in large part be due to a small number of very large leaks from natural gas production and distribution system.
Additionally, several recent analyses of atmospheric measurements in state suggest that actual California methane emissions may be 30 to 70% higher than estimated in ARB’s emission inventory. The Short-Lived Climate Pollutant draft strategy notes that several efforts are underway at the CEC and ARB to improve emissions monitoring to help identify sources of fugitive methane emissions and reduce them, including from oil and gas operations. Additionally, ARB and NASA’s Jet Propulsion Laboratory are collaborating to identify large “hot spot” methane sources through a systematic survey of high methane emitters throughout California using both aerial and ground measurements.
By state, California is the second largest user of natural gas in the country (Texas is the largest user). Although the state has worked to reduce fugitive methane emissions from various sources over recent years, including new efforts to reduce fugitive leaks from natural gas infrastructure in the state, 91% of the natural gas used in California is imported.
- State efforts to reduce natural gas system leaks.
- SB 1371. In an effort to address systemic natural gas leaks from an aging infrastructure as well as address climate impacts due to methane, SB 1371 (Leno, Chapter 525, Statutes of 2014) requires CPUC, in consultation with ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities. SB 1371 requires the rules and procedures include procedures for the development of metrics to quantify the volume of emissions from leaking gas pipeline facilities, and for evaluating and tracking leaks geographically and over time that may be incorporated into ARB’s mandatory GHG emissions reporting. SB 1371 also requires, to the extent feasible, the owner of each commission-regulated gas pipeline facility that is an intrastate transmission or distribution line to calculate and report to the commission and ARB a baseline system-wide leak rate, along with any data and computer models used in making that calculation.
On January 15, 2015, CPUC opened a rulemaking proceeding to implement the requirements of SB 1371, with an expected decision in the first quarter of 2017. On July 7, 2015, CPUC released a scoping memo that raises questions and issues in implementing the legislation to be addressed by the rulemaking. Among many other questions raised, the memo asks how ratepayer and shareholder financial incentives should be aligned when accounting for and paying for “lost gas.”
SB 1441 clarifies this issue by requiring CPUC, to the extent feasible, to prohibit gas corporations from recovering the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of natural gas, from ratepayers.
- ARB draft oil and gas regulations. In April of last year, ARB released a draft regulation to address fugitive and vented emissions from new and existing oil and gas facilities, pursuant to authority under AB 32 to regulate GHGs. Specifically, the proposed regulation applies to crude oil and natural gas production, crude oil storage, underground natural gas storage, natural gas processing plants and transmission stations. The draft regulation contains requirements for natural gas underground storage facility well monitoring, restrictions for natural gas venting and specifications for leak detection and repair, as well as other requirements.
- Aliso Canyon and DOGGR’s emergency regulation. In response to the state of emergency from the recent natural gas leak at the Southern California Gas Company’s Aliso Canyon storage well facility, the Division of Oil Gas and Geothermal Resources (DOGGR) adopted emergency regulations for oil and gas storage facilities. The new regulations are in effect for six months beginning February 5, 2016, but can be extended. DOGGR is requiring increased inspections and monitoring requirements for all wells, regular testing of all safety valves, minimum and maximum pressure limits for each gas storage facility in the state, and each storage facility to establish a comprehensive risk management plan that evaluates and prepares for risks at each facility, including corrosion of potential pipes and equipment.
- National efforts to reduce natural gas sector emissions. In August 2015, the United States Environmental Protection Agency (US EPA) proposed standards to directly reduce methane emissions from the oil and gas sector to help address climate change. The standards are strategies to support the Administration’s goal of reducing methane emissions from the oil and gas sector by 40 to 45% from 2012 levels by 2025. The proposed requirements address emissions from the production to transmission segments, including: expanding the federal New Source Performance Standards for the oil and gas industry to include methane emissions directly upstream; requiring leak detection and repair at well sites, gathering and boosting stations and compressor stations across the transmission and storage segments; new standards to reduce methane emissions from hydraulically fractured oil wells; and emission guidelines to reduce smog-forming emissions from existing oil and gas sources in areas where smog reaches unhealthy levels.
Comments
- Purpose of Bill. According to the authors, “Methane emissions represent a threat to our climate and a waste of natural gas, a valuable energy resource. Enough natural gas is lost each year to fuel 6 million homes. In the U.S. last year, this lost gas had the same negative impact on the climate as the annual carbon emissions of 117 million cars, or roughly half the cars in the United States.”
The authors states that, with the exception of rules accounting for and reducing leakage from gas produced in-state (10% of the gas we use)—methane leakage that occurs in the value chain before it is delivered to consumers is not accounted for in the statewide inventory or considered in the state’s emissions reduction strategies. The authors further notes that this leaves the vast majority of pollution off the books—and without a concrete strategy for California to reduce it. These emissions come from old valves, tanks, compressors, and other equipment located in oil and gas fields in California, and in places like Texas, New Mexico, Colorado, Utah, Wyoming, and Canada. SB 1441 clarifies that utilities may not seek and be awarded ratepayer compensation for gas they lose to the atmosphere from utility owned transmission and distribution systems, including storage. SB 1441 also requires the ARB to develop a comprehensive plan to reduce leakage from gas used in California, including imports.
Finally, the authors states that “SB 1441 leverages recent regulatory advances in the methodology of quantifying methane leaks, national and international efforts targeting a 40% reduction in vented and fugitive emissions of methane, and California’s leading role in climate change policy, to achieve meaningful and effective reductions in one of the most common and potent climate changing pollutants.”
- Fixing leaks outside California. SB 1441 directs ARB, in consultation with CPUC, to adopt methane reduction measures for the emissions associated with extraction, production, storage, processing and transportation of the natural gas used in the state, to reach a 40% reduction in those methane emissions, from their 2012 level, by 2025.
As noted in the background, California imports 91% of its natural gas. Therefore, to reach the target established in the bill, most of the leakage reduction measures will need to occur in natural gas infrastructure that exists outside California.
As the state has limited authority to require measures that address fugitive natural gas outside its borders, the question arises as to how ARB and CPUC will reach the 2025 methane reduction goal.
SB 1441 does not mandate a particular strategy, but instead requires ARB and CPUC consider incentives, requirements related to natural gas procurement, amending the cap-and-trade program, and working with other states and the federal government. The state currently influences the types of electrical generation that may be contracted for, independent of geographic origin, through both a greenhouse gas emission performance standard on electrical generation and a procurement requirement for renewable energy. Additionally, California requires transportation fuels used in the state to have reduced carbon intensities through the Low Carbon Fuel Standard. As such, there is precedent for state-wide measures that have regional and national implications for achieving environmental goals. A procurement standard for natural gas, inter-state and federal collaboration, and incentives and investments in natural gas basins that supply gas to California, all required for consideration by SB 1441, may work to influence fugitive methane emissions from the natural gas sector outside the state.
- Incentives should benefit California. SB 1441 requires ARB and CPUC to consider incentives or investment programs to facilitate emissions reduction in basins where the state receives natural gas. As the state imports over 90% of its natural gas, these basins and fields that could potentially receive financial incentives or investment will likely be out of state, and may serve a vast array of other states as well. Additionally, some of those basins and fields may only serve a small fraction of California’s total natural gas use.
The committee and authors may wish to consider amending the bill to specify that these basins and fields considered for incentives and investments be those from which the state receives significant quantities of natural gas.
- Aligning with other methane goals. ARB has recently outlined a goal of reducing methane emissions in California by 40% from 2013 levels by 2030. SB 1383 (Lara) this year codifies that target for methane, as well as targets for other SLCPs. SB 1441 intends to address a subset of methane emissions—those from the natural gas sector. The reduction targets of SB 1441 may work in part toward achieving the 40% reduction goal for sector-wide methane emissions in California by 2030.
The natural gas sector goal, as outlined in SB 1441, mirrors the recent US EPA proposed target of reducing methane emissions from the oil and gas sector by 40 to 45% from 2012 levels, by 2025.
Having two different baseline years could create confusion in determining and reaching targets. Additionally, success in reaching proposed targets is only meaningful if the baseline year was chosen based on the quality and quantity of emissions data for that year. As ARB has specified 2013 as an appropriate baseline year for methane emissions, the committee and authors may wish to amend the bill to change the 2012 baseline in SB 1441 to a 2013 baseline year.
- Clarify the baseline only covers natural gas sector emissions. SB 1441 sets a target of reducing emissions associated with the production, processing, and transport of natural gas of at least 40% below 2012 methane emission levels by 2025.
As noted in the background, significant methane emissions in California and the rest of the country come from agricultural operations and landfills. As SB 1441 is intended to address emissions from the natural gas system used to deliver natural gas used in California, an amendment is needed to clarify that the baseline by which the 40% reduction is measured includes system-wide methane emissions from the natural gas sector for natural gas used in California.
- Require regulations to maximize benefits, minimize costs. SB 1441 requires ARB and CPUC to consider, in reaching the target specified in the bill, designing regulations in a manner that seeks to minimize costs and maximize total benefits. An amendment is needed to instead require ARB and CPUC, when adopting regulations to reach the 40% reduction target, to design the regulations in a manner that seeks to minimize costs and maximize total benefits.
Related/Prior Legislation
SB 1371 (Leno, Chapter 525, Statutes of 2014) requires CPUC to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities, with the goal of reducing GHG emissions.
SB 1496 (Thurmond, Chapter 604, Statutes of 2015) requires ARB to monitor high-emission methane hot-spots in the state, consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports, and update relevant policies and programs based on those updated life-cycle analyses.
AB 1257 (Bocanegra, Chapter 749, Statutes of 2013) requires CEC, beginning November 2015, to report on strategies to maximize benefits from natural gas as an energy source, and include an evaluation of the benefits and economic cost of proposed strategies, including evaluating the life-cycle greenhouse gas emissions from production, transportation, and use of natural gas, in consultation with ARB.
DOUBLE REFERRAL:
This measure was heard in Senate Energy, Utilities, and Communications Committee on April 5, 2016, and passed out of committee with a vote of 8-1.
SOURCE:
Author
SUPPORT:
American Lung Association in California
California Interfaith Power & Light
California League of Conservation Voters
Clean Water Action
Engineers and Scientists of California
Environment California
Environmental Defense Fund
Moms Clean Air Force
Sierra Club California
Union of Concerned Scientists
Utility Workers Union of America
OPPOSITION:
None received
ARGUMENTS IN SUPPORT:
Supporters state that SB 1441 closes two
important loopholes that undermine the state’s overall effort and creates a new era
of accountability for natural gas leakage. They note that since utilities are
compensated for the gas they lose, utility incentive to reduce leakage above and
beyond regulatory requirements are muted, thus reducing overall signals to
minimize overall emissions. Supporters state that SB 1441 removes this incentive
in order to increase the overall incentive to minimize methane pollution. They
further note that California’s strategies to reduce methane pollution stop at the
border and fail to consider 91% of gas California imported into the state – and the
20 and 100 million metric tons of carbon dioxide equivalent pollution associated
with it. According to the proponents, SB 1441 removes this loophole in the
state climate program and requires ARB to integrate methane reductions from
imported gas into its long term plan for pollution reduction.
-- END --
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: Hearing Date: 4/5/2016
Author: | and Pavley | ||
Version: | As Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill would require the California Air Resources Board (ARB), in consultation with the California Public Utilities Commission (CPUC), and other relevant agencies, to adopt regulations to achieve a reduction of methane emissions of 40 percent below 2012 levels by 2025 for emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports. This bill would also prohibit the CPUC from allowing gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation and delivery of the natural gas.
ANALYSIS:
Existing law:
- Establishes the California Global Warming Solutions Act of 2006 and requires the ARB to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. Defines methane as a greenhouse gas. Authorizes ARB to include the use of market-based mechanisms to comply with these regulations. (Health and Safety Code §38500 et seq.)
- Requires the ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants in the state. (Health and Safety Code §39730)
- Requires the ARB to monitor high-emission methane hot-spots in the state, consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports, update relevant policies and programs based on those updated life-cycle analyses, and review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants. (Health and Safety Code §39731)
- Requires the CPUC, in consultation with the ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities while giving priority to safety, reliability, and affordability of service. Requires gas corporations to file a report that includes a summary of utility leak management practices, list of leaks and a best estimate of gas loss due to leaks. Requires the rules and procedures adopted to accomplish specified actions, including: provide for the maximum technologically feasible and cost-effective avoidance and repair of leaks and leaking components in CPUC-regulated gas pipeline facilities that are intrastate transmission and distribution lines; and establish protocols and procedures for the development and use of metrics to quantify the volume of emissions from leaking gas pipeline facilities and for evaluating and tracking leaks geographically and over time that may be incorporated into the ARB’s mandatory GHG emission reporting. (Public Utilities Code §975)
- Requires the CPUC to consider as part of its accountability for rate revenues and best value for ratepayers, consistent with existing ratemaking procedures and authority, to provide revenues for all activities identified and required to address leaks, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes, among other provisions. (Public Utilities Code §977)
- Establishes that the CPUC is the state authority responsible for regulating and enforcing intrastate gas pipeline transportation and pipeline facilities pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code, including the development, submission, and administration of a state pipeline safety program certification for natural gas pipelines pursuant to Section 60105 of that chapter. (Public Utilities Code §955 et seq.)
- Establishes that the Division of Oil, Gas, and Geothermal Resources (DOGGR) in the Department of Conservation at the Natural Resources Agency is the state authority responsible for regulating oil and gas, including natural gas storage wells. Provides the division’s leader, the state’s oil and gas supervisor, with broad authority to supervise oil and gas operations to prevent damage to life, health, property and natural resources, among other requirements. (Public Resources Code §3100 et seq.)
- Authorizes the CPUC to fix rates, establish rules, and examine records for all public utilities subject to its jurisdiction, including gas corporations. (California Constitution Article XII, Section 6)
This bill:
- Requires the ARB, in consultation with the CPUC and other relevant agencies, to adopt by regulation methane emissions reductions measures for the emissions associated with the extraction, production, storage, processing, and transportation of natural gas used in the state, including imports, that will achieve a reduction in methane emissions of at least 40 percent below 2012 methane emissions levels by 2025.
- Requires the regulation adopted to include information acquired as part of ARB’s existing efforts to carry out life-cycle GHG emissions analysis of natural gas imports.
- Requires the regulation to include interim targets to reach the methane emissions goal.
- Requires ARB, in consultation with CPUC and other relevant state agencies, to consider specified approaches in efforts to establish measures for reducing methane emissions, including:
- developing new incentives and investment programs in basins and fields from which the state receives natural gas;
- imposing new procurement and tracking requirements of interstate deliveries on the state’s regulated natural gas corporations;
- modifying the state’s market based-emissions reductions measures to include compliance obligations of natural gas utilities and fuel importers;
- participating or forming interstate and federal working groups, compacts or agreements; and
- designing regulations in a manner that seeks to minimize costs and maximize the total benefits.
- Requires the CPUC to prohibit gas corporations from seeking or receiving recovery from ratepayers the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of natural gas.
Background
Natural gas. Natural gas is often referred to as the fossil fuel of choice because it is lighter and burns cleaner than oil and coal. Natural gas is used to fuel power plants that generate electricity, as a heating and cooking fuel in homes and industrial processes, and as a transportation fuel. According to the U.S. Energy Information Agency, California is the second largest consumer of natural gas as compared to other states, with Texas being the top consumer. The majority of the natural gas used in California, about 90 percent, is imported from outside the state. Most of the imports come from the Southwest and the Rocky Mountains, with an additional portion coming from Canada. In California, just over 40 percent of natural gas is used to generate electricity. In recent years, there’s been a growing reliance on natural gas-fired power plants to meet local reliability needs, to provide emergency system support and to provide additional services to keep the system running reliably. When generation from renewable sources of energy decline but energy load does not, other generation sources must be called on to maintain the electric grid. The increased dependency on natural gas-fired generation can be attributed to the shift away from more carbon-intensive resources (such as coal), effects of the drought which has reduced hydroelectric power supply, the retirement of the San Onofre Nuclear Generating Station (SONGS), and increased use of other renewables, including solar and wind, which are intermittent resources. Other resources, particularly those fired by natural gas, are needed to ramp up production quickly, as the renewables generation falls off, and be turned down quickly as the renewables production increases. The result is greater variation in gas load, as well as large draws on the gas system, sometimes very quickly.[1]
About methane emissions. Methane is the primary component of natural gas and is also produced biologically under anaerobic conditions in animals with a four-part stomach (such as cattle and sheep), landfills, and waste handling. Atmospheric methane concentrations have been increasing as a result of human activities related to agriculture, fossil fuel extraction and distribution, and waste generation and processing. Methane is a short-lived climate pollutant with an atmospheric lifetime of about 12 years. Like other GHGs, methane warms the atmosphere by blocking infrared radiation (heat) that is re-emitted from the earth’s surface from reaching space. Methane is a potent GHG, with roughly 28 times the warming power of carbon dioxide over a 100-year period and more than 80 times over a 20-year timespan. Methane also affects local air quality by contributing to the formation of global background levels of ozone. Ozone itself is a powerful short-lived climate pollutant as well as a regional ground level air pollutant (a.k.a. smog) which negatively impacts human health and can lead to asthma attacks, hospitalizations, and even premature death. About two-thirds of the rise in global levels of background ozone can be attributed to methane emissions.
Efforts to address methane emissions. Methane emissions come from both intentional and unintentional releases of natural gas. Unintentional releases of methane, or fugitive emissions, can come from multiple sources and phases of the natural gas system, such as from leaking pipelines, abandoned wells, or inefficient combustion. Intentional releases are purposeful and known emissions that occur in the normal operations of the natural gas system. For example, safety dictates the venting of natural gas when pressures reach levels where there could be a safety risk.[2]
There are many ongoing regulatory initiatives being undertaken by various agencies in the state (mostly relating to air pollution, greenhouse gases, and the increased use of renewable energy sources), as well as, the federal government to address methane emissions from the natural gas system both directly and indirectly. These include: efforts to reduce short-lived climate pollution, improvements to pipeline safety requirements largely in response to the 2010 PG&E San Bruno fatal explosion, legislative requirements to address natural gas leaks, emergency regulations to address storage well integrity, federal proposals to address methane emissions and others. Of these efforts, perhaps the most relevant are the state’s efforts to develop a strategy for reducing short-lived climate pollutants, including methane emissions, and implementation of legislative requirements to address leaks.
Short-lived climate pollutant strategy. SB 605 (Lara and Pavley, Chapter 523, Statutes of 2014) requires ARB to develop a strategy for reducing short-lived climate pollutants, including methane. ARB has developed a draft strategy, solicited public comment and is currently expecting to finalize the strategy in mid-2016. The draft strategy includes a proposed goal of reducing overall methane emissions by 40 percent below 2013 levels by 2030. SB 1383 (Lara, 2016) proposes to codify this and the other proposed goals within the draft strategy. The strategy acknowledges the need to further minimize fugitive emissions of methane from natural gas infrastructure. However, the report also notes the current aging natural gas infrastructure which may pose challenges to the ability to minimize emissions. Below are the methane emissions sources for the 2013 benchmark year and the 2030 emissions goals, including the roughly 13% of the emissions attributed to oil and gas extraction and pipelines in the state.
Source: ARB, Draft Short-Lived Climate Pollutant Reduction Strategy: September, 2015. See http://www.arb.ca.gov/cc/shortlived/2015draft.pdf.htm.
Addressing leaks from natural gas system. In an effort to address systemic natural gas leaks from an aging infrastructure, as well as, climate impacts due to methane, SB 1371 (Leno, Chapter 525, Statutes of 2014) requires the CPUC, in consultation with ARB, to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities. SB 1371 requires the rules and procedures include procedures for the development of metrics to quantify the volume of emissions from leaking gas pipeline facilities, and for evaluating and tracking leaks geographically and over time that may be incorporated into ARB’s mandatory GHG emission reporting. SB 1371 also requires, to the extent feasible, the owner of each commission-regulated gas pipeline facility that is an intrastate transmission or distribution line to calculate and report to the commission and ARB a baseline system-wide leak rate, along with any data and computer models used in making that calculation. The CPUC is currently in the midst of implementing the requirements of SB 1371, having opened a rulemaking proceeding in January 2015 with an expected decision in the first quarter of 2017. As of the date of this analysis, the CPUC, working with ARB, has hosted several public workshops, solicited comments on a Safety and Enforcement Division “Best Practices” report, gathered reports from the utilities on gas leaks and leak management practices, and has scheduled a joint workshop with ARB on emission reduction targets, compliance, and enforcement on April 12, 2016.
In response to the state of emergency from the recent natural gas leak at the Southern California Gas Company’s Aliso Canyon storage well facility, the Division of Oil Gas and Geothermal Resources has adopted new emergency regulations of oil and gas storage facilities. The new regulations are in effect for six months beginning February 5, 2016, but can be extended. DOGGR is requiring increased inspections and monitoring requirements for all wells, regular testing of all safety valves, minimum and maximum pressure limits for each gas storage facility in the state, and each storage facility to establish a comprehensive risk management plan that evaluates and prepares for risks at each facility, including corrosion of potential pipes and equipment.
Additionally, the CPUC enforces statutes and rules (General Order 112-E) which establish, in addition to the Federal Pipeline Safety Regulations that CPUC enforces, minimum requirements for the design, construction, quality of materials, locations, testing, operations and maintenance of facilities used in the gathering, transmission and distribution of gas and in liquefied natural gas facilities to safeguard life or limb, health, property and public welfare and to provide that adequate service will be maintained by gas utilities operating under the jurisdiction of the commission.
In February of this year, ARB proposed new emissions regulations for oil and gas facilities aimed at tackling fugitive and vented methane emissions in the state. The proposed regulations require underground storage well facility owners to develop a plan for surface-leak monitoring on a continuous or daily basis, and require that intentional venting be limited to the use of no-vent devices, vapor collection, and other measures.
In August 2015, the United States E.P.A. proposed standards to directly reduce methane emissions from the oil and gas sector to help address climate change. The standards are strategies to support the Administration’s goal of reducing methane emissions from the oil and gas sector by 40-45 percent from 2012 levels by 2025. The proposed requirements address emissions from the production to transmission segments, including: expanding the federal New Source Performance Standards for the oil and gas industry to include methane emissions directly upstream; require leak detection and repair at well sites, gathering and boosting stations and compressor stations across the transmission and storage segments; new standards to reduce methane emissions from hydraulically fractured oil wells; and emission guidelines to reduce smog-forming emissions from existing oil and gas sources in areas where smog reaches unhealthy levels.
Goal merits clarification. This bill proposes codifying a goal to reduce methane emissions from natural gas processes, but it is unclear whether the proposed goal aligns, or may not align, with California’s existing GHG emission reduction goals and proposed goals. Specifically, this bill proposes to require a reduction of methane emissions from natural gas processes that would result in a 40 percent reduction below 2012 levels by 2025. The goal is modeled after the U.S. E.P.A. goal announced in 2015. However, currently ARB’s proposed related emissions goals use 2013 as the emissions inventory benchmark year. For example, the methane emissions reduction goal proposed in ARB’s draft strategy to reduce short-lived climate pollutants, proposed to be codified in SB 1383 (Lara), would require a 40 percent reduction from 2013 levels in overall methane emissions (from all sources in the state) by 2030. Should this bill move forward, the Senate Committee on Environmental Quality may wish to ensure the proposed goal is aligned with and complimentary to related emissions goals.
Not a single penny. The language as currently proposed would not allow gas corporations to recover from ratepayers even a single penny for the value of any gas lost to the atmosphere. The author’s intent is to eliminate all fugitive and other emissions during the full life-cycle of the natural gas extraction, production, distribution and delivery. However, it may not be feasible, or cost-effective, to capture 100 percent of all potential lost gas during the full life-cycle of the natural gas system. It’s also unclear how much of the natural gas system is under the control of the utility, beyond the facilities it owns and operates in the state. Moreover, the current state of emissions accounting is very uncertain due to the complexities of the natural gas system. In order to maintain the intent of the bill, while recognizing the practical realities and limitations to capture all lost gas 100 percent of the time, the author and committee may wish to have the CPUC determine what, if any, of the value of lost gas may be recouped in rates by gas corporations. Specifically:
SEC 3. Section 977 of the Public Utilities Code:
(b) (2) In establishing rates for gas corporations, in an individual rulemaking proceeding or in general rate cases, the commission shall not allow gas corporations to seek or receive recovery from ratepayers for the value of natural gas lost to the atmosphere during the extraction, production, storage, processing, transportation, and delivery of the natural gas, to the extent feasible as determined by the California Public Utilities Commission.
In-state vs. out-of-state investments. This bill allows for ARB to consider investments in fields and basins that supply natural gas to California. However, the bill does not make a distinction regarding in-state vs. out-of-state basins and fields. As noted above, a majority of the natural gas consumed in California is imported from outside the state (about 90 percent), including from the Southwest, Rocky Mountains and Canada. However, to-date investments from the revenues of California’s greenhouse gas reduction funds have been made for projects in-state, including high speed rail, intercity transit and rail, affordable housing, low-income weatherization and solar installations, zero and near-zero emissions vehicles, urban forests, and many others. The list of in-state potential projects and programs that could benefit from the GHG reductions funds continues to expand. Since these revenues are derived from facilities subject to the cap-and-trade program requirements in California, this bill raises questions and concerns regarding whether out-of-state projects that may help to reduce GHG emissions attributed to California’s consumption should be considered eligible to receive some of these funds and, if so, to what extent California can and should verify that those investments are to the benefit of Californians.
Double-referred. Should this bill be approved by this committee, it has been referred to the Senate Committee on Environmental Quality.
Prior/Related Legislation
SB 1371 (Leno, Chapter 525, Statutes of 2014) required the CPUC to open a proceeding to adopt rules and procedures that minimize natural gas leaks from CPUC-regulated gas pipeline facilities with the goal of reducing GHG emissions.
SB 605 (Lara, Chapter 523, Statutes of 2014) required the ARB to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, including methane emissions, in the state.
AB 1496 (Thurmond, Chapter 604, Statutes of 2015) required the ARB to monitor high-emission methane hot-spots in the state, consult with specified entities to gather information for purposes of carrying out life-cycle GHG emissions analyses of natural gas imports, update relevant policies and programs based on those updated life-cycle analyses, and review scientific information on atmospheric reactivity of methane as a precursor to the formation of photochemical oxidants.
SB 1383 (Lara) would require the state board to approve and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants to achieve a reduction in methane of 40 percent, hydrofluorocarbon gases of 40 percent, and anthropogenic black carbon of 50 percent below 2013 levels by 2030, as specified. The bill has been referred to the Senate Committee on Environmental Quality and is scheduled to be heard April 6th.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
California Interfaith Power & Light
California League of Conservation Voters
Clean Water Action
Consumer Federation of California
Engineers & Scientists of California
Environment California
Environmental Defense Fund
Moms Clean Air Force
Sierra Club California
Union of Concerned Scientists
Utility Workers Union of America
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: The Environmental Defense Fund states that “SB 1441 closes two important loopholes that undermine the state’s overall effort and create a new era of accountability for natural gas leakage. Since utilities are compensated for the gas they lose, utility incentive to reduce leakage above and beyond regulatory requirements are muted, thus reducing overall signals to minimize overall emissions. SB 1441 removes this incentive in order to increase the overall incentive to minimize methane pollution. California’s strategies [to reduce methane pollution] stop at the border and fail to consider 91 percent of gas California imported into the state – and the 20 and 100 million metric tons of carbon dioxide equivalent pollution associated with it. SB 1441 removes this loophole in the state climate program and requires ARB to integrate methane reductions from imported gas into its long term plan for pollution reduction.”
Utility Workers Union of America and Engineers & Scientists of California argue “it is high time that the safety culture of our gas utilities be fundamentally shifted to a system that creates strong incentives to stop gas leaks rather than financially rewarding them. Had SB 1441 been law, we doubt that the leak at Aliso Canyon would ever have happened.”
-- END --
California Energy Commission. AB 1257 Natural Gas Act Report: Strategies to Maximize the Benefits Obtained from Natural Gas as an Energy Source. Final Staff Report. November 2015. http://docketpublic.energy.ca.gov/PublicDocuments/15-IEPR-04/TN206470_20151030T160233_STAFF.pdf ↑
Ibid. ↑
Discussed in Hearing
4MIN
Assembly Floor
17MIN
Assembly Standing Committee on Appropriations
12MIN
Assembly Standing Committee on Utilities and Commerce
4MIN
Senate Floor
14MIN
Senate Standing Committee on Energy, Utilities and Communications
Bill Co-Author(s):