In 2000, Assembly Bill (AB) 1002 (Wright, Chapter 932, Statutes of 2000) was enacted, requiring the California Public Utilities Commission (CPUC) to impose a surcharge on natural gas consumed in California. These monies funded energy efficiency programs and public interest research and development to benefit natural gas ratepayers. 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, designating the California Energy Commission as the research fund administrator. In July of 2021, Section 25620.8 of the Public Resources Code was amended to provide further guidance on the preparation and submission of an annual report.
The Natural Gas Research and Development Program 2021 Annual Report highlights project successes and benefits, and covers results of completed projects and the progress of current research from July 1, 2020 through June 30, 2021. In fiscal year 2020-2021, the California Energy Commission administered $24 million in natural gas research, development, and demonstration projects geared toward improving natural gas system decarbonization, building decarbonization, industrial and agricultural innovation, low-emission transportation, entrepreneurial support, and resilience, health, and safety for natural gas in California.