| Independently Powered Energy News

Four different Senate bills and one Assembly measure passed that enhance natural gas pipeline system safety in the wake of the San Bruno disaster last year, in which a Pacific Gas & Electric pipeline exploded, killing eight, injuring 51, and destroying 38 homes. They await Gov. Jerry Brown’s approval. SB 44 by Sen. Ellen Corbett (D-San Leandro) clarifies that the CPUC is in charge of gas pipeline safety. It also calls for utility emergency response plans for pipelines, plus sharing of information on pipelines with state and local fire authorities. SB 216 by Sen. Leland Yee (D-San Francisco) requires automatic or remote-controlled shutoff valves on high pressure pipelines that run through populated areas. SB 705 by Sen. Mark Leno (D-San Francisco) calls for the CPUC to order utilities to develop gas pipeline safety plans and approve them by the end of 2012. In addition, the measure requires the CPUC to collect adequate revenue from gas companies to hire the staff it needs to fully administer safety standards. The CPUC came under criticism in the wake of the San Bruno explosion for having insufficient staff to oversee pipeline safety. SB 879 by Sen. Alex Padilla (D-San Fernando) lifts the cap on penalties the CPUC can levy for violations of pipeline safety standards from $20,000/offense to $50,000/offense. It leaves the floor on penalties at $500/offense. In addition, Padilla’s bill requires balancing accounts for recovery of expenses related to gas safety. Balancing accounts hold money collected for future work based on estimated expenses. Once the work is performed, money is either returned to ratepayers if it winds up costing less than estimated, or more is collected to cover the shortage. AB 56 by Jerry Hill (D-San Bruno) increases state regulatory oversight of in-state natural gas pipelines. That includes requiring gas companies to install shut off valves and submit pressure testing plans to the CPUC. A number of other Senate bills passed and went to the governor. SB 454 by Sen. Fran Pavley (D-Agoura Hills) provides the California Energy Commission administrative enforcement power to take action when building contactors fail to follow applicable energy efficiency codes. It also prohibits utilities from issuing energy efficiency rebates to cover work done by contractors unless it was performed according to code and under a building permit. SB 585 by Sen. Christine Kehoe (D-San Diego) lifts the cap on incentive payments to carry out the California Solar Initiative (originally conceived as the million solar roofs program) by $200 million. The cap goes from $3.3508 billion to $3.5508 billion. The bill also calls on the CPUC to set cost caps on individual solar installation projects. SB 679 by Pavley moves $25 million originally appropriated to fund a state property assessed clean energy financing program into an existing fund the California Energy Commission administers. CEC uses that fund to loan money for energy efficiency upgrades and solar rooftops to local governments and other public institutions. SB 771 by Kehoe enables the California Alternative Energy & Advanced Transportation Financing Authority--which provides financial assistance for clean, distributed generation projects--to cover microturbines and engines that run on landfill gas or wastewater treatment plant digester gas. SB 790 by Leno calls on the CPUC to set a code of conduct for utilities facing community choice aggregation efforts. When communities choose aggregation, utility customers in the area get the option to purchase their power from a local agency, which can make it or purchase it. However, they have to continue to pay their utility for distribution service. Leno’s bill also sets standards for community choice aggregators to prevent them from making misrepresentations during the aggregation process. SB 836 by Padilla requires the CPUC by Feb. 1 and annually thereafter to release the cost of all electricity procurement contracts and utility-owned projects that supply renewable energy. The CPUC has kept the cost of such contracts confidential on grounds that releasing it could influence negotiations between utilities and power producers in a way that skews the price of renewable electricity. Other states, however, commonly disclose the cost of such contracts. Energy bills that originated in the Assembly and went to the governor include: AB 512 by Assemblymember Richard Gordon (D-Menlo Park) allows municipal alternative energy projects built to meet onsite demand, which also are plugged into the grid, to increase from 1 MW to 5 MW. AB 631 by Assemblymember Fiona Ma (D-San Francisco) codifies the California Public Utilities Commission ruling that electric vehicle charging stations shall not be regulated as public utilities. AB 982 by Assemblymember Nancy Skinner (D-Oakland) aims to facilitate the use of a patchwork of land parcels to site renewable energy parcels. It requires the State Lands Commission to work with the Department of Interior to consolidate school land parcels considered suitable for renewable energy development. AB 1027 by Assemblymember Jean Buchanan (D-San Ramon) 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. AB 1055 by Hill prohibits CPUC members from soliciting funds from people or businesses regulated by the agency.

No Result