In 2000, Assembly Bill 1002 (Wright, Chapter 932, Statutes of 2000) was enacted, requiring the California Public Utilities Commission (CPUC) to impose a surcharge on all natural gas consumed in California to fund various energy efficiency programs as well as public interest research and development to benefit natural gas ratepayers. Assembly Bill 1002 (AB 1002) also required the CPUC to designate an entity to administer the research component of AB 1002. In 2004, the CPUC issued Decision 04-08-010, which designated the California Energy Commission as the administrator for the research funds.
The Natural Gas Research and Development Program 2016 Annual Report highlights project successes and benefits, and covers completed projects and current research from July 1, 2015, through June 30, 2016. In fiscal year 2015-2016, the California Energy Commission administered $24 million in natural gas research, development, and demonstration projects geared toward improving energy efficiency, renewable energy, advanced generation, and energy infrastructure in California.