(Min D) Neighborhood Decarbonization Program.

Current Text: Amended: 3/22/2023 

Status: 5/19/2023-Failed Deadline pursuant to Rule 61(a)(5). (Last location was APPR. SUSPENSE FILE on
5/15/2023)(May be acted upon Jan 2024)

Summary: Existing law requires the State Energy Resources Conservation and Development Commission to establish the Equitable Building Decarbonization Program, which includes establishing the direct install program to fund certain projects and remediation and safety measures to facilitate the installation of new technologies and a statewide incentive program for low-carbon building technologies, as specified.

This bill would require the Public Utilities Commission, in consultation with gas corporations, to develop and supervise the administration of the Neighborhood Decarbonization Program to facilitate the cost-effective decarbonization of targeted natural gas zones with the intent to provide benefits that include, but are not limited to, reduced emissions of greenhouse gases and air pollution, increased safety, and the maintenance of rate affordability for California gas customers, and to decommission gas assets in zones with the highest community burdens and those that would result in the highest projected ratepayer cost savings. The bill would require the commission, in consultation with each gas corporation, to adopt guidelines and regulations for the program, as specified. The bill would require the commission, after 5 years of implementing the program, to review the efficacy of the program in providing benefits to gas customers and in assisting the state in meeting the state’s climate change goals. The bill would require the commission, based on its review, to determine whether or not to continue implementing the program. This bill would authorize a gas corporation to cease providing service in an area within its service territory if the commission determines that adequate substitute energy service is reasonably available to support the energy end use of affected gas customers as a part of the Neighborhood Decarbonization Program. The bill would require a gas corporation to be authorized to fully recover the undepreciated cost of a gas plant or asset if full cost recovery has not been achieved for the gas plant or asset that is decommissioned. The bill would require the commission, in a new or existing proceeding, to develop the roles, responsibilities, timelines, and processes for determining whether gas service may be discontinued. The bill would require the commission, in determining what constitutes adequate substitute energy service and when the substitute energy service is reasonably available, to adopt guidelines necessary to ensure that the rates for substitution of service for low-income customers and renters are just, adequate, and reasonable. The bill would authorize the commission, upon the termination of the program, to terminate, modify, or retain a gas corporation’s obligation to provide service in an area within its service territory where adequate substitute energy service is reasonably available.