Gas corporations: renewable gas procurement.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. Existing law, relative to restructuring of the gas industry, requires the commission to require each gas corporation to provide bundled basic gas service to all core customers in its service territory unless the customer chooses or contracts to have natural gas purchased and supplied by another entity. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation, as specified. Existing law requires that prior to establishing biomethane procurement targets or goals, that the commission find that the targets or goals are cost-effective means to achieving forecast reduction in emissions of short-lived climate pollutants pursuant to specified laws and that the targets or goals comply with all applicable state and federal laws. This bill would require the commission to establish a renewable gas, as defined, procurement program that requires each gas corporation to procure renewable gas in an amount so that, by January 1, 2030, at least 20 percent of the total volume of gas delivered to core customers in California by that gas corporation is renewable gas. The bill would require the commission, in designing and implementing the program, to ensure that the renewable gas procurement program is a cost-effective means to achieve forecast reductions in emissions of short-lived climate pollutants pursuant to specified laws and that the program complies with all applicable state and federal laws. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime. 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.