In 2000, the California Legislature enacted Assembly Bill (AB) 1002 (Wright, Chapter 932, Statutes of 2000), requiring the California Public Utilities Commission (CPUC) to add a surcharge on gas consumption in California. This surcharge funds various energy efficiency programs and public-interest research and development to benefit gas investor-owned utility ratepayers. AB 1002 also required the CPUC to designate an entity to administer the research component of the program. In 2004, the CPUC issued Decision 04-08-010, designating the California Energy Commission (CEC) as a research fund administrator.
This Gas Research and Development Budget Plan describes the CEC’s proposed gas research and development initiatives for Fiscal Year 2026–27. The CEC’s proposed initiatives align with CPUC-established themes of gas system integrity and decarbonization. The initiatives support state energy policies and goals and CPUC proceedings, with several initiatives directly benefiting disadvantaged and vulnerable communities. The proposed research funding for Fiscal Year 2026–27 is $24 million. The budget plan covers July 1, 2026, through June 30, 2027. The budget plan was informed by input from representatives of the Disadvantaged Communities Advisory Group, investor-owned utilities’ gas research and development program administrators, CPUC interagency coordination, California Native American tribes, and public workshop participants, among others.
