ARIZONA STATE SENATE

RESEARCH STAFF

 

SUSAN ANABLE

RESEARCH STAFF DIRECTOR

         NATURAL RESOURCES, AGRICULTURE           AND ENVIRONMENT COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

 

TO:                  MEMBERS OF THE SENATE          

                        APPROPRIATIONS COMMITTEE              

 

DATE:             April 16, 2001

 

SUBJECT:       Proposed Strike Everything Amendment to H.B. 2324

                                                                                                                                                           

 

Purpose:

 

Eliminates the prohibition on a public power entity from charging a monthly service fee for natural gas provided for the refueling of vehicles through home refueling systems.

 

Background

 

In 2000, legislation was enacted that prohibits public power entities from charging or receiving a monthly service fee in addition to fees collected for natural gas provided to refuel alternative fuel vehicles powered by compressed natural gas (Laws 2000, Chapter 405).  Public power entities include municipalities and other political subdivisions that generate, transmit, distribute or otherwise provide electricity and that are not public service corporations. 

 

According to the City of Mesa, the City of Mesa Gas Utility is the only public power entity in the state that provides natural gas. As a result of the statutory prohibition on service fees, Mesa is precluded from collecting a monthly service fee from people who purchase their natural gas from the Utility to refuel their compressed natural gas vehicles using vehicle refueling apparatuses (more commonly referred to as home refueling systems). 

 

Other private utilities that provide natural gas, such as Southwest Gas,  are not prohibited from charging monthly services fees and most do.  The strike everything amendment to H.B. 2324 eliminates this restriction on public power entities.

 

The strike everything amendment to H.B. 2324 has no fiscal impact to the state general fund.

 

Provisions

 

1.      Repeals the prohibition on a public power entity from charging a monthly service fee for natural gas provided for the refueling of vehicles through a vehicle refueling apparatus.

 

2.      Provides for a general effective date.

 

SA/cmh