BILL NUMBER: AB 1935INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Campos FEBRUARY 19, 2014 An act to amend Section 769 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGEST AB 1935, as introduced, Campos. Electricity: clean distributed energy technologies. Existing law requires each electrical corporation, no later than July 1, 2015, to submit to the Public Utilities Commission a distribution resources plan proposal to identify the optimal locations for the deployment of distributed resources. Existing law defines the term "distributed resources." Existing law requires the commission to review and approve the plan. This bill would revise the definition of "distributed resources" to include clean distributed energy technology, as defined. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 769 of the Public Utilities Code is amended to read: 769. (a) For purposes of this section,"distributedthe following terms have the following meanings: (1) "Clean distributed energy technology" means any of the following: (A) An energy generation technology that meets all of the following criteria: (i) Converts an energy resource into electricity or heat. (ii) Meets or exceeds the emission factor for electricity developed by the State Air Resources Board in the scoping plan adopted pursuant to Section 38561 of the Health and Safety Code. (iii) Meets or exceeds the oxides of nitrogen emissions rate standard set forth in Section 94203 of Title 17 of the California Code of Regulations. (iv) Has a nameplate rated generation capacity of 20 or less megawatts. (B) A conversion technology that meets all of the following criteria: (i) (I) Converts organic waste into a useful energy resource. (II) For the purposes of this clause, "organic waste" means waste consisting of organic matter, as defined by the Department of Resources Recycling and Recovery pursuant to Division 30 (commencing with Section 40000) of the Public Resources Code, that is a byproduct of another process that would normally be emitted or transported to the environment. (ii) Meets or exceeds the oxides of nitrogen emissions rate standard set forth in Section 94203 of Title 17 of the California Code of Regulations. (iii) Has a nameplate rated generation capacity of 20 or less megawatts. (2) "Distributed resources" means distributed renewable generation resources, clean distributed energy technology, energy efficiency, energy storage, electric vehicles, and demand response technologies. (3) "Energy resource" means a gas, liquid, or solid that can be converted into mechanical work, electricity, or heat. (b) Not later than July 1, 2015, each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources. Each proposal shall do all of the following: (1) Evaluate locational benefits and costs of distributed resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed resources provides to the electric grid or costs to ratepayers of the electrical corporation. (2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed resources that satisfy distribution planning objectives. (3) Propose cost-effective methods of effectively coordinating existing commission-approved programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed resources. (4) Identify any additional utility spending necessary to integrate cost-effective distributed resources into distribution planning consistent with the goal of yielding net benefits to ratepayers. (5) Identify barriers to the deployment of distributed resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service. (c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed resources. (d)AnyAn electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.