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SB-237 Electricity: direct transactions.(2017-2018)

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Date Published: 06/13/2018 09:00 PM
SB237:v95#DOCUMENT

Amended  IN  Assembly  June 13, 2018
Amended  IN  Assembly  September 11, 2017
Amended  IN  Assembly  September 08, 2017
Amended  IN  Assembly  June 15, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 237


Introduced by Senator Hertzberg

February 06, 2017


An act to amend Section 13365 of the Vehicle Code, relating to infractions. An act to amend Section 365.1 of the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


SB 237, as amended, Hertzberg. Crimes: Infractions. Electricity: direct transactions.
The Public Utilities Act requires the Public Utilities Commission to authorize and facilitate direct transactions between electricity suppliers and retail end-use customers, but suspends direct transactions except as expressly authorized. Existing law expressly requires the commission to authorize direct transactions for nonresidential end-use customers, subject to an annual maximum allowable total kilowatthour limit established, as specified, for each electrical corporation, to be achieved following a now completed 3-to 5-year phase-in period.
This bill would require the commission to adopt and implement a 2nd phase-in period for expanding direct transactions over a period of not more than 3 years, so that by the end of the 3-year period all nonresidential end-use customers may acquire electric service from other providers in each electrical corporation’s distribution service territory.
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 would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by expanding the operation of a 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.

Prior to June 27, 2017, a court was authorized to notify the Department of Motor Vehicles when a person has failed to appear or failed to pay a fine or bail, with respect to various violations relating to vehicles. Existing law requires the department to suspend, and prohibits the department from issuing or renewing, a person’s driver’s license upon receipt of one of those notices, as specified.

This bill would invalidate any suspension placed on a driver’s license pursuant to that law and, on or before July 1, 2018, require the department to remove any suspension imposed before June 27, 2017, for failure to make specified payments.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

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


SECTION 1.

 Section 365.1 of the Public Utilities Code is amended to read:

365.1.
 (a) Except as expressly authorized by this section, and subject to the limitations in subdivisions (b) and (c), the right of retail end-use customers pursuant to this chapter to acquire service from other providers is suspended until the Legislature, by statute, lifts the suspension or otherwise authorizes direct transactions. For purposes of this section, “other provider” means any person, corporation, or other entity that is authorized to provide electric service within the service territory of an electrical corporation pursuant to this chapter, and includes an aggregator, broker, or marketer, as defined in Section 331, and an electric service provider, as defined in Section 218.3. “Other provider” does not include a community choice aggregator, as defined in Section 331.1, and the limitations in this section do not apply to the sale of electricity by “other providers” to a community choice aggregator for resale to community choice aggregation electricity consumers pursuant to Section 366.2.
(b) (1) The commission shall allow individual retail nonresidential end-use customers to acquire electric service from other providers in each electrical corporation’s distribution service territory, up to a maximum allowable total kilowatthours annual limit. The During the first phase-in period for expanding access to direct transactions, the maximum allowable annual limit shall be established by the commission for each electrical corporation at the maximum total kilowatthours supplied by all other providers to distribution customers of that electrical corporation during any sequential 12-month period between April 1, 1998, and the effective date of this section. Within six months of the effective date of this section, or by July 1, 2010, whichever is sooner, the commission shall adopt and implement a reopening schedule that commences immediately and will phase in the allowable amount of increased kilowatthours over a period of not less than three years, and not more than five years, raising the allowable limit of kilowatthours supplied by other providers in each electrical corporation’s distribution service territory from the number of kilowatthours provided by other providers as of the effective date of this section, to the maximum allowable annual limit for that electrical corporation’s distribution service territory. The commission shall review and, if appropriate, modify its currently effective rules governing direct transactions, but that review shall not delay the start of the phase-in schedule.
(2) By July 1, 2019, the commission shall adopt and implement a second direct transactions reopening schedule that commences upon adoption and phases in new direct transactions over a period of not more than three years, raising the allowable limit of kilowatthours supplied by other providers in each electrical corporation’s distribution service territory from that in effect as of the conclusion of the first phase-in period, so that at the conclusion of the three-year period, all nonresidential end-use customers may acquire electric service from other providers in each electrical corporation’s distribution service territory. At the conclusion of the second phase-in period, there will cease to be any maximum allowable annual limit of kilowatthours that can be supplied by other providers to nonresidential end-use customers in each electrical corporation’s distribution service territory.
(c) Once the commission has authorized additional direct transactions pursuant to subdivision (b), it shall do both of the following:
(1) Ensure that other providers are subject to the same requirements that are applicable to the state’s three largest electrical corporations under any programs or rules adopted by the commission to implement the resource adequacy provisions of Section 380, the renewables portfolio standard provisions of Article 16 (commencing with Section 399.11), and the requirements for the electricity sector adopted by the State Air Resources Board pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code). This requirement applies notwithstanding any prior decision of the commission to the contrary.
(2) (A) Ensure that, in the event that the commission authorizes, in the situation of a contract with a third party, or orders, in the situation of utility-owned generation, an electrical corporation to obtain generation resources that the commission determines are needed to meet system or local area reliability needs for the benefit of all customers in the electrical corporation’s distribution service territory, the net capacity costs of those generation resources are allocated on a fully nonbypassable basis consistent with departing load provisions as determined by the commission, to all of the following:
(i) Bundled service customers of the electrical corporation.
(ii) Customers that purchase electricity through a direct transaction with other providers.
(iii) Customers of community choice aggregators.
(B) If the commission authorizes or orders an electrical corporation to obtain generation resources pursuant to subparagraph (A), the commission shall ensure that those resources meet a system or local reliability need in a manner that benefits all customers of the electrical corporation. The commission shall allocate the costs of those generation resources to ratepayers in a manner that is fair and equitable to all customers, whether they receive electric service from the electrical corporation, a community choice aggregator, or an electric service provider.
(C) The resource adequacy benefits of generation resources acquired by an electrical corporation pursuant to subparagraph (A) shall be allocated to all customers who pay their net capacity costs. Net capacity costs shall be determined by subtracting the energy and ancillary services value of the resource from the total costs paid by the electrical corporation pursuant to a contract with a third party or the annual revenue requirement for the resource if the electrical corporation directly owns the resource. An energy auction shall not be required as a condition for applying this allocation, but may be allowed as a means to establish the energy and ancillary services value of the resource for purposes of determining the net costs of capacity to be recovered from customers pursuant to this paragraph, and the allocation of the net capacity costs of contracts with third parties shall be allowed for the terms of those contracts.
(D) It is the intent of the Legislature, in enacting this paragraph, to provide additional guidance to the commission with respect to the implementation of subdivision (g) of Section 380, as well as to ensure that the customers to whom the net costs and benefits of capacity are allocated are not required to pay for the cost of electricity they do not consume.
(d) (1) If the commission approves a centralized resource adequacy mechanism pursuant to subdivisions (h) and (i) of Section 380, upon the implementation of the centralized resource adequacy mechanism the requirements of paragraph (2) of subdivision (c) shall be suspended. If the commission later orders that electrical corporations cease procuring capacity through a centralized resource adequacy mechanism, the requirements of paragraph (2) of subdivision (c) shall again apply.
(2) If the use of a centralized resource adequacy mechanism is authorized by the commission and has been implemented as set forth in paragraph (1), the net capacity costs of generation resources that the commission determines are required to meet urgent system or urgent local grid reliability needs, and that the commission authorizes to be procured outside of the Section 380 or Section 454.5 processes, shall be recovered according to the provisions of paragraph (2) of subdivision (c).
(3) Nothing in this subdivision supplants the resource adequacy requirements of Section 380 or the resource procurement procedures established in Section 454.5.

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.
SECTION 1.

The Legislature finds and declares that this act shall not be interpreted to alter existing law regarding suspension of the privilege to operate a motor vehicle in connection with any of the following violations:

(a)Reckless driving, pursuant to Section 23103 of the Vehicle Code.

(b)Reckless driving proximately causing bodily injury to a person, pursuant to Sections 23104 and 23105 of the Vehicle Code.

(c)Driving under the influence of alcohol, drugs, or both, pursuant to Section 23152 of the Vehicle Code.

(d)Driving under the influence of alcohol, drugs, or both, and causing bodily injury to another person, pursuant to Section 23153 of the Vehicle Code.

SEC. 2.Section 13365 of the Vehicle Code, as amended by Section 51 of Chapter 17 of the Statutes of 2017, is amended to read:
13365.

(a)Upon receipt of notification of a violation of subdivision (a) of Section 40508, the department shall take the following action:

(1)If the notice is given pursuant to subdivision (a) of Section 40509, if the driving record of the person who is the subject of the notice contains one or more prior notifications of a violation issued pursuant to Section 40509 or 40509.5, and if the person’s driving privilege is not currently suspended under this section, the department shall suspend the driving privilege of the person.

(2)If the notice is given pursuant to subdivision (a) of Section 40509.5, and if the driving privilege of the person who is the subject of the notice is not currently suspended under this section, the department shall suspend the driving privilege of the person.

(b)(1)A suspension under this section shall not be effective before a date 60 days after the date of receipt, by the department, of the notice given specified in subdivision (a), and the notice of suspension shall not be mailed by the department before a date 30 days after receipt of the notice given specified in subdivision (a).

(2)The suspension shall continue until the suspended person’s driving record does not contain any notification of a violation of subdivision (a) of Section 40508.

(c)(1)Any suspension of a person’s driving privilege imposed prior to June 27, 2017, pursuant to this section, as it read prior to June 27, 2017, based on a notice pursuant to subdivision (b) of Section 40509, as that subdivision read prior to June 27, 2017, or subdivision (b) of Section 40509.5, as that subdivision read prior to June 27, 2017, or based on a notice pursuant to subdivision (a) of Section 40509 where the suspension was imposed because the person’s driving record contained a prior notification of a violation issued pursuant to subdivision (b) of Section 40509, as that subdivision read prior to June 27, 2017, or subdivision (b) of Section 40509.5, as that subdivision read prior to June 27, 2017, shall no longer be valid as of June 27, 2017.

(2)On or before July 1, 2018, the department shall remove any suspension described in paragraph (1).