CA SB 1221

Title: Gas corporations: priority neighborhood decarbonization zones: pilot projects.
Author: David K. Min

Summary
SB 1221, as amended, Min. Gas corporations: priority neighborhood decarbonization zones: pilot projects. Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires every public utility to furnish and maintain adequate, efficient, just and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public.This bill would require each gas corporation, on or before July 1, 2025, and annually thereafter, to file a map containing certain information, including the location of all potential gas distribution line replacement projects identified in its distribution integrity management plan and other foreseeable gas distribution pipeline replacements. The bill would require the commission, on or before January 1, 2026, in a new or existing proceeding, to establish a voluntary program to facilitate the cost-effective decarbonization of priority neighborhood decarbonization zones, as defined, not to exceed 30 pilot projects across the state and affecting no more than 1% of each of gas corporation’s customers within their service territory. The bill would require the commission to do various things, including establish the criteria and methodology for determining the cost-effectiveness of zero-emission alternatives, as defined, for purposes of the pilot projects, determine the appropriate rate of return and recovery period that a gas corporation is eligible to receive for their costs to implement zero-emission alternatives for purposes of the pilot projects, and designate priority neighborhood decarbonization zones taking into consideration certain factors. The bill would authorize a gas corporation to cease providing service in an area within its service territory where a pilot project has been implemented if the commission determines that adequate substitute energy service is reasonably available to support the energy end use of affected gas corporation customers, as provided. The bill would repeal the above-described provisions on January 1, 2030. The bill would also require the commission to submit various reports to the relevant committees of the Legislature regarding the pilot projects, as provided, and would repeal these reporting requirements on January 1, 2031.Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above requirements are codified in the act and a violation of those requirements or a commission’s action implementing those requirements would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.

Status
Re-referred to Com. on APPR.

Bill Documents
CA SB 1221 - 04/25/24 - Amended Senate
04/25/24 - CA SB 1221 (04/25/24 - Amended Senate)