California Direct Access Senate Bill Update

Therese Lavalle

An amended version of California State Senate Bill 286 passed the Assembly Committee on Utilities and Commerce on July 13, 2015. The bill will still expand the existing direct access program to allow up to 8,000 gigawatt-hours (GWh) of new direct access load to be phased in over a three year period commencing January 1, 2016. However, the amended version requires the new incremental direct access load to meet a 100 percent renewable requirement, up from 51 percent in the previous version. The higher renewable requirement will result in higher priced electricity for the new direct assess load.

The bill now moves to the Committee on Appropriation, once the legislature reconvenes on August 17th. The legislation still has a long journey to become law and is still eligible for further amendments, including potentially reducing the renewable requirement. The bill faces strong opposition from PG&E, Southern California Edison, and San Diego Gas & Electric among others. All in all, the bill remains on track for approval this year with an effective date of January 1, 2016.

Keep track of SB 286’s status and activity by visiting the California’s Legislative Bill website.

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The information in this page is offered only for general informational and educational purposes. It is not offered as and does not constitute legal advice.

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