10299.1
. (a) Notwithstanding any other law, the director shall
operate the Natural Gas Services Program to consolidate and address
the needs of multiple state agencies for the procurement of natural
gas and related services.
(b) Procurement of natural gas and related services is vital to
public sector facilities in California and, due to the volumes and
costs involved, this section authorizes the following:
(1) The director shall make the services of the department with
respect to the acquisition of natural gas and related services
available, under agreed upon terms and conditions, to any city,
county, city and county, district, or other local governmental body,
and to any nonprofit hospital or educational institution that expends
public funds.
(2) The department is authorized to enter into interagency
agreements with the entities listed in paragraph (1) for the
acquisition of natural gas and related services. The department may
enter into contracts, master agreements, multiple award schedules,
cooperative agreements, agreements with entities outside the state,
and other types of agreements that leverage the state's buying power
through the use of a competitive bidding process. The state shall not
incur financial responsibility in connection with the contracting of
nonstate agencies under this section.
(3) The department may buy, sell, exchange, transfer, or otherwise
dispose of natural gas acquired by the department pursuant to this
section, and may recover the department's acquisition and other costs
to operate the program through customer charges or fees.
(4) The department may enter into gas purchase transactions for a
term longer than five years, if specifically approved by the
director.
(5) The program shall adjust to changes in customer requirements
and market conditions and create and manage an ongoing pool of gas
suppliers.
(6) The department is authorized to provide additional services to
customers related to the environmental aspects of energy use and the
requirements related to greenhouse gas regulations, renewable energy
requirements, and similar programs and requirements.
(c) Agencies that are in the executive branch of the state
government, except the Department of Water Resources, shall use the
department's Natural Gas Services Program for noncore gas purchases
of natural gas to ensure maximum participation resulting in the best
discounts and prices for the commodity. The director may allow
exemptions to this requirement.
(d) For purposes of this section, "natural gas" includes, but is
not limited to, natural gas, methane, biomethane, compressed natural
gas, liquefied natural gas, and other energy commodity that is
similar to natural gas, and related services, including, but not
limited to, gas storage, gas transportation, and forward purchases of
natural gas.
(e) During any period in which a Budget Act has not been approved,
the department shall continue to receive payment transfers from
agencies that are not in the executive branch of the state government
and agencies that are in the executive branch of state government
that are able to pay because they operate with funds that are
continuously appropriated.
(f) The department is authorized to charge, collect, and hold
funds from a customer that voluntarily requests prepaid long-term
natural gas supplies, for a period not to exceed 20 years.
(g) The Department of General Services Natural Gas Services
Program Fund is hereby established in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the fund is
hereby continuously appropriated to the department without regard to
fiscal year, for the purposes of operating the Natural Gas Services
Program.
(1) All revenues payable to the department for natural gas and
related services shall be deposited in this fund. Any payments from
this fund shall only be made for those purposes described in and
consistent with this section.
(2) The Natural Gas Services Program's customer fee revenues
cannot be shifted or borrowed from the fund.
(3) If at the end of any fiscal year, there are unexpended
revenues, those revenues shall be retained in the fund and reserved
for future Natural Gas Services Program expenses.
(h) Funding for the costs incurred by the department in
administering this section shall be provided for in the annual Budget
Act.