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SB-1434 Transportation electrification: electricity rate design.(2017-2018)

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Date Published: 07/02/2018 09:00 PM
SB1434:v96#DOCUMENT

Amended  IN  Assembly  July 02, 2018
Amended  IN  Senate  May 02, 2018
Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1434


Introduced by Senator Leyva

February 16, 2018


An act to add Section 740.17 to the Public Utilities Code, relating to transportation electrification.


LEGISLATIVE COUNSEL'S DIGEST


SB 1434, as amended, Leyva. Transportation electrification: electricity rate design.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations Existing law, enacted as part of the Clean Energy and Pollution Reduction Act of 2015, requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission and State Air Resources Board, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. That law requires that the programs proposed by electrical corporations seek to minimize overall costs and maximize overall benefits. The PUC is required to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, through a reasonable cost recovery mechanism, if they are consistent with the above-described purposes, do not unfairly compete with nonutility enterprises, include performance accountability measures, and are in the interests of ratepayers.
This bill would require the PUC to direct electrical corporations an electrical corporation with more than 100,000 service connections in California to file rate design applications, specific to transit agencies as commercial customers, that support and accelerate a rate design application by July 1, 2019, that supports and accelerates the deployment of zero-emission transit buses to reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. This requirement would not apply to an electrical corporation with an approved or proposed rate tariff that meets the goals of the bill as of July 1, 2019. The bill would authorize an electrical corporation with 100,000 or fewer service connections in California to file rate design applications a rate design application for those purposes. The bill would require that a rate design proposed by an electrical corporation seek to minimize overall costs and maximize overall benefits to ratepayers and transit agencies and and not shift costs to nonparticipating customers. The bill would require the commission to approve, or modify and approve, rate design applications, but only if they are consistent with this requirement and are a rate design application filed by an electrical corporation if it is consistent with these requirements and is in the interests of ratepayers.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill are within the act and require action by the commission for implementation, the bill would impose a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 740.17 is added to the Public Utilities Code, to read:

740.17.
 (a) (1) The Legislature finds and declares all of the following:
(A) Reducing emissions of greenhouse gases to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050 will require widespread transportation electrification, including of California’s transit bus fleet.
(B) Zero-emission transit buses are needed to reduce fossil fuel use, to meet air quality standards, to improve public health, to prove the viability of zero-emission heavy-duty technologies, and to achieve the state’s goals for reducing emissions of greenhouse gases.
(C) Lower and more More predictable electricity rates should support and accelerate increased deployment of zero-emission transit buses by providing access to a fuel that is cleaner and less costly than gasoline or other fossil fuels.
(D) According to the State Alternative Fuels Plan analysis by the Energy Commission and the State Air Resources Board, light-, medium-, and heavy-duty vehicle electrification results in approximately 70 percent less of greenhouse gases emitted, over 85 percent less of ozone-forming air pollutants emitted, and 100 percent less petroleum used. These reductions will become larger as renewable generation increases.
(2) It is the policy of the state and the intent of the Legislature to encourage electrification of California’s transit bus fleet as a means to achieve ambient air quality standards and the state’s climate goals. Agencies designing and implementing regulations, guidelines, plans, and funding programs to reduce emissions of greenhouse gases shall take the findings described in paragraph (1) into account.
(b) (1) The On or before July 1, 2019, the commission shall direct an electrical corporation with more than 100,000 service connections in California California that does not have an approved or proposed rate tariff that meets the goals of this section as of that date to file a rate design application that is specific to transit agencies as commercial customers and that supports and accelerates the deployment of zero-emission transit buses to reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050.
(2) An electrical corporation with 100,000 or fewer service connections in California may file a rate design application that is specific to transit agencies as commercial customers and that supports and accelerates the deployment of zero-emission transit buses to reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050.
(3) A rate design proposed by an electrical corporation pursuant to this subdivision shall seek to minimize overall costs and maximize overall benefits to ratepayers and transit agencies. benefits and shall not shift costs to nonparticipating customers. The commission shall approve, or modify and approve, a rate design application if it is consistent with this section and in the interests of ratepayers as defined in Section 740.8, and shall otherwise reject the application.
(c) This section applies to an application to the commission for rate design if one of the following conditions is met:
(1) The application is filed on or after January 1, 2019.
(2) The application is filed before January 1, 2019, but has an evidentiary hearing scheduled on or after July 1, 2019.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.