Assembly Panel Advances Pipeline Regulation, EV Charging Bills

In a busy session this week, the California Senate’s Energy, Utilities, & Communications Committee passed a number of bills, including ones regarding gas pipeline safety, electric vehicle charging stations, and distributed energy incentive programs. AB 56 would increase state regulatory oversight of in-state natural gas pipelines, plus prohibit the use of ratepayer funds to cover penalties arising from gas accidents. It was approved on an 8-3 vote July 5. “The reality is that safety has become part of the ratemaking process and the cost should be shared by the ratepayers and the shareholders,” said the bill’s sponsor, Assemblymember Jerry Hill (D-San Mateo). “This bill simply asks the CPUC consider the safety record when determining the rate of return.” The legislation also would require the California Public Utilities Commission to develop pipeline safety standards, submit regular reports on infrastructure repairs and upgrades, and ensure that ratepayer funds approved for pipeline infrastructure repairs are spent on designated pipes. Republican Senators Tom Berryhill (R-Fresno), Jean Fuller (R-Bakersfield), and Tony Strickland (R-Simi Valley), cast the ‘no’ votes. Berryhill said the bill mandated things already covered under other legislation, specifically SB 44, SB 216, and SB 879, all of which Berryhill said he supported. “This bill, I think, does have great intent. I just think there is a lot of duplicative language here,” Berryhill said. “The PUC, in their testimony, mentioned they have the authority to make a lot of these determinations already.” Hill’s district includes San Bruno--the site of the September 2010 gas explosion that killed eight people and injured about 60. The bill now goes on to the Assembly Appropriations Committee. Also passing, this one on a 9-0 vote, was AB 631 by Assemblymember Fiona Ma (D-San Francisco). It would exempt electric vehicle charging stations from regulatory authority. The bill would provide that the ownership or management of a facility that supplies electricity to the public solely to charge light duty plug-in electric vehicles doesn’t make the owner or operator a public utility for purposes of the act thereby exempting them from certain CPUC regulations. Under current law, the CPUC requires all public utilities to furnish and maintain specific services, instrumentalities, equipment and facilities deemed necessary to promote “the safety, health, comfort, and convenience of its patrons, employees, and the public.” Additionally during the meeting, the committee voted to approve AB 976, an Isadore Hal (D-Compton) bill that limits the role of energy consultants. Specifically, the legislation prohibits people or companies that have been awarded consulting services contracts to advise public entities on the feasibility of creating a CCA from submitting a bid for, or being awarded, a contract for any work including the procurement of electricity supply and renewable energy credits, or related action in the consulting services contract. AB 864 by Assemblymember Jared Huffman (D-San Rafael) sailed through the committee on a 9-1 vote. It amends section 379 of California’s public utilities code to allow distributed energy resources with generating capacities of up to 10 MW to be eligible for incentives. At the same time, it also limits the incentive awards to no more than 5 MW of that capacity. Under current law, larger systems built on-site are not eligible for subsidies. AB 1027, by Assemblymember Jean Buchanan (D-San Ramon) was approved 10-0. The bill requires a local publicly-owned electric utility to make appropriate space and capacity on their utility poles and support structures available for use by cable TV companies, video service providers, and telephone corporations. The bill would require fees for this use, as well as set terms and conditions of access.

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Assembly Panel Advances Pipeline Regulation, EV Charging Bills

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