2009 California Public Utilities Code - Section 890-900 :: Article 10. Natural Gas Surcharge

890.  (a) On and after January 1, 2001, there shall be imposed a
surcharge on all natural gas consumed in this state. The commission
shall establish a surcharge to fund low-income assistance programs
required by Sections 739.1, 739.2, and 2790 and cost-effective energy
efficiency and conservation activities and public interest research
and development authorized by Section 740 and not adequately provided
by the competitive and regulated markets. Upon implementation of
this article, funding for those programs shall be removed from the
rates of gas utilities.
   (b) (1) Except as specified in Section 898, a public utility gas
corporation, as defined in subdivision (b) of Section 891, shall
collect the surcharge imposed pursuant to subdivision (a) from any
person consuming natural gas in this state who receives gas service
from the public utility gas corporation.
   (2) A public utility gas corporation is relieved from liability to
collect the surcharge insofar as the base upon which the surcharge
is imposed is represented by accounts which have been found to be
worthless and charged off in accordance with generally accepted
accounting principles. If the public utility gas corporation has
previously paid the amount of the surcharge it may, under regulations
prescribed by the State Board of Equalization, take as a deduction
on its return the amount found to be worthless and charged off. If
any accounts are thereafter collected in whole or in part, the
surcharge so collected shall be paid with the first return filed
after that collection. The commission may by regulation promulgate
other rules with respect to uncollected or worthless accounts as it
determines to be necessary to the fair and efficient administration
of this part.
   (c) Except as specified in Section 898, all persons consuming
natural gas in this state that has been transported by an interstate
pipeline, as defined in subdivision (c) of Section 891, shall be
liable for the surcharge imposed pursuant to subdivision (a).
   (d) The commission shall annually determine the amount of money
required for the following year to administer this chapter and fund
the natural gas related programs described in subdivision (a) for the
service territory of each public utility gas corporation.
   (e) The commission shall annually establish a surcharge rate for
each class of customer for the service territory of each public
utility gas corporation. A customer of an interstate gas pipeline, as
defined in Section 891, shall pay the same surcharge rate as the
customer would pay if the customer received service from the public
utility gas corporation in whose service territory the customer is
located. The commission shall determine the total volume of retail
natural gas transported within the service territory of a utility gas
provider, that is not subject to exemption pursuant to Section 896,
for the purpose of establishing the surcharge rate.
   (f) The commission shall allocate the surcharge for gas used by
all customers, including those customers who were not subject to the
surcharge prior to January 1, 2001.
   (g) The commission shall notify the State Board of Equalization of
the surcharge rate for each class of customer served by an
interstate pipeline in the service territory of a public utility gas
corporation.
   (h) The State Board of Equalization shall notify each person who
consumes natural gas delivered by an interstate pipeline of the
surcharge rate for each class of customer within the service
territory of a public utility gas corporation.
   (i) The surcharge imposed pursuant to subdivision (a) shall be in
addition to any other charges for natural gas sold or transported for
consumption in this state. Effective on July 1, 2001, the surcharge
imposed pursuant to this article shall be identified as a separate
line item on the bill of a customer of a public utility gas
corporation.
   (j) Notwithstanding subdivision (a), public utility gas
corporations shall continue to collect in rates those costs of
programs described in subdivision (a) of Section 890 that are
uncollected prior to the operative date of this article.

891.  (a) "Gas utility" means any public utility gas corporation or
interstate pipeline as defined in this section.
   (b) "Public utility gas corporation" means a public utility gas
corporation as defined in Section 216.
   (c) "Interstate pipeline" means any entity that owns or operates a
natural gas pipeline delivering natural gas to consumers in the
state and is subject to rate regulation by the Federal Energy
Regulatory Commission.
   (d) Each gas utility shall notify the State Board of Equalization
of its status under this section. Each person who consumes natural
gas delivered by an interstate pipeline shall annually register with
the State Board of Equalization. The State Board of Equalization may
require any documentation that it determines to be necessary to
implement this article.

892.  The revenue from the surcharge imposed pursuant to this
article and collected by a public utility gas corporation shall be
paid to the State Board of Equalization in the form of remittances.
Persons consuming natural gas delivered by an interstate pipeline
shall pay the surcharge to the State Board of Equalization in the
form of remittances. The board shall transmit the payments to the
Treasurer who shall deposit the payments in the Gas Consumption
Surcharge Fund, which is hereby created in the State Treasury.

892.1.  The surcharges imposed by this part and the amounts thereof
required to be collected by public utility gas corporations are due
quarterly on or before the last day of the month next succeeding each
calendar quarter.

892.2.  On or before the last day of the month following each
calendar quarter, a return for the preceding quarterly period shall
be filed with the State Board of Equalization in such form as the
board may prescribe. A return shall be filed by every public utility
gas corporation, and by every person consuming, as defined in this
article, natural gas transported by a provider other than the public
utility gas corporation. The return shall be signed by the person
required to file the return or by his or her duly authorized agent.

893.  The State Board of Equalization shall administer the surcharge
imposed pursuant to this article in accordance with the Fee
Collection Procedures Law (Part 30 (commencing with Section 55001) of
Division 2 of the Revenue and Taxation Code.

894.  The State Board of Equalization may collect any unpaid
surcharge imposed pursuant to this article.

895.  Notwithstanding Section 13340 of the Government Code, moneys
in the Gas Consumption Surcharge Fund are continuously appropriated,
without regard to fiscal years, as follows:
   (a) To the commission or an entity designated by the commission to
fund programs described in subdivision (a) of Section 890. If the
commission designates the State Energy Resources Conservation and
Development Commission to receive funds for public interest research
and development, both of the following shall apply:
   (1) The Controller shall transfer funds to a separate subaccount
within the Public Interest Research, Development, and Demonstration
Fund to pay the State Energy Resources Conservation and Development
Commission for its costs in carrying out its duties and
responsibilities under this article.
   (2) The State Energy Resources Conservation and Development
Commission may administer the program pursuant to Chapter 7.1
(commencing with Section 25620) of Division 15 of the Public
Resources Code.
   (b) To pay the commission for its costs in carrying out its duties
and responsibilities under this article.
   (c) To pay the State Board of Equalization for its costs in
administering this article.

896.  "Consumption" means the use or employment of natural gas.
Consumption does not include the use or employment of natural gas to
generate power for sale, the sale or purchase of natural gas for
resale to end users, the sale or use of gas for enhanced oil
recovery, natural gas utilized in cogeneration technology projects to
produce electricity, or natural gas that is produced in California
and transported on a proprietary pipeline. Consumption does not
include the consumption of natural gas which this state is prohibited
from taxing under the United States Constitution or the California
Constitution.

897.  Nothing in this article impairs the rights and obligations of
parties to contracts approved by the commission, as the rights and
obligations were interpreted as of January 1, 1998.

898.  Notwithstanding Section 890, a municipality, district, or
public agency that offers in published tariffs home weatherization
services, rate assistance for low-income customers, or programs
similar to those described in subdivision (a) of Section 890, shall
not be required to collect a surcharge pursuant to this article from
customers within its service territory. A municipality, district, or
public agency shall be required to collect a surcharge pursuant to
this article from customers served by the municipality, district, or
public agency outside of its service territory unless the commission
determines that the entity offers those customers services similar to
those offered by gas utilities as described in subdivision (a) of
Section 890.

899.  Sections 890 and 892 do not apply to any gas customer of a
municipality, district, or public agency exempted by Section 898 from
collecting a surcharge.

900.  The commission shall determine the most efficient and
cost-effective way to provide programs pursuant to Sections 739.1,
739.2, and 2790 in a consistent manner statewide by utility provider
service territory. In determining the most cost-effective way to
provide service that benefits persons eligible for low-income
programs, the commission shall consider factors, including, but not
limited to, outreach efforts to reach the targeted population and the
types of discounts and services that should be provided by each
utility. On or before July 1, 2001, the commission shall develop and
implement efficient and cost-effective programs pursuant to Sections
739.1, 739.2, and 2790. The commission may conduct compliance audits
to ensure compliance with any commission order or resolution relating
to the implementation of programs pursuant to Sections 739.1, 739.2,
and 2790, and may conduct financial audits.