BILL NUMBER: AB 1935AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 6, 2014 AMENDED IN ASSEMBLY APRIL 22, 2014 AMENDED IN ASSEMBLY MARCH 28, 2014 INTRODUCED BY Assembly Member Campos FEBRUARY 19, 2014 An act to amend Section 321.7 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGEST AB 1935, as amended, Campos. Electricity: clean distributed energy resources. Existing law requires the Public Utilities Commission, on a biennial basis and in consultation with the Independent System Operator and the State Energy Resources Conservation and Development Commission, to study and submit a report to the Legislature and the Governor on the impacts of distributed energy generation on the state' s distribution and transmission grid. This bill would instead require the Public Utilities Commission, on a biennial basis, to study and submit a report to the Legislature and the Governor on the impacts of distributed generation, including clean distributed energy resources, as defined, on the state's distribution and transmission grid. 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 321.7 of the Public Utilities Code is amended to read: 321.7. (a) On or before January 1st of every other year, the commission, in consultation with the Independent System Operator and the Energy Commission, shall study, and submit a report to the Legislature and the Governor, on the impacts of distributed generation, including clean distributed energy resources , on the state's distribution and transmission grid. (b) For the purposes of this section, "clean distributed energy resource" means any of the following: (1) A clean energy generating technology that meets all of the following criteria: (A) Produces electricity, or electricity and useful heat. (B) Has a greenhouse gas emissions factor, including, when applicable, credit for waste heat recovery and savings on transmission and distribution losses, that is less than or equal to an emissions factor determined by the State Air Resources Board that represents the emissions of greenhouse gases that are displaced by the electricity generated by the distributed energy resource. (C) Has an oxide of nitrogen (NOx) emissions rate, including, when applicable, credit for waste heat recovery, that is less than or equal to 0.07 pounds per megawatthour, or a lower NOx emissions rate that the State Air Resources Board determines reflects the best performance achieved in practice by existing electrical generation technologies pursuant to Section 41514.9 of the Health and Safety Code. (D) Has a nameplate rated generation capacity of 20 or less megawatts. (2) An eligible renewable energy resource, as defined in Section 399.12, that has a nameplate generation capacity of 20 or less megawatts.(3) A demandside reduction resource.(3) Demand response that provides reliability benefits to the system, complies with local, state, and federal air emission regulations, reduces emissions of greenhouse gases, and supports the state's goal of increasing the use of eligible renewable energy resources pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3). (4) An energy storage technology that stores energy from a technology or resource specified in paragraph(1), (2), or (3).(1) or (2). (c) The study shall evaluate all of the following: (1) Reliability and transmission issues related to connecting clean distributed energy resources to the local distribution networks and regional electrical grid. (2) Issues related to electrical grid reliability and operation, including interconnection, and the position of federal and state regulators toward distributed energy accessibility. (3) The effect on overall electrical grid operation of various clean distributed energy resources. (4) Barriers affecting the connection of distributed energy to the state's electrical grid. (5) Emerging technologies related to clean distributed energy resources interconnection. (6) Interconnection issues that may arise for the Independent System Operator and local distribution companies. (7) The effect on peak demand for electricity. (d) In addition, the commission shall specifically assess the impacts of the California Solar Initiative program, specified in Section 2851 and Section 25783 of the Public Resources Code, the self-generation incentive program authorized by Section 379.6, and the net energy metering pilot program authorized by Section 2827.9. (e) The report submitted to the Legislature pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.