CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1405Introduced by Assembly Member MullinFebruary 17, 2017 An act to add Chapter 8.5 (commencing with Section 2847) to Part 2 of Division 1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 1405, as introduced, Mullin. Electricity: Clean Peak Energy Standard.The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the procurement requirements established by the program.Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to reevaluate the determination not less than once every 3 years. Existing law requires the governing board of a local publicly owned electric utility to initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020.This bill would require the commission to ensure that an unspecified percentage of the energy delivered to ratepayers during the peakload time period by load-serving entities is derived from eligible renewable resources or energy storage systems. Because a violation of an order or direction of the commission would be a crime, this bill would impose a state-mandated local program. The bill would require local publicly owned electric utilities to ensure that an unspecified percentage of energy delivered to ratepayers during the peakload time period is derived from eligible renewable resources or energy storage systems. Because the bill would impose additional duties on a local agency, this bill would impose a state-mandated local program.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 specified reasons.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 8.5 (commencing with Section 2847) is added to Part 2 of Division 1 of the Public Utilities Code, to read: CHAPTER 8.5. Clean Peak Energy Standard2847. For purposes of this chapter, the following definitions apply:(a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12.(b) Energy storage systems has the same meaning as set forth in Section 2835.(c) Load-serving entity has the same meaning as set forth in Section 380.(d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times.(e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time.2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.(b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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 XIIIB of the California Constitution. CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1405Introduced by Assembly Member MullinFebruary 17, 2017 An act to add Chapter 8.5 (commencing with Section 2847) to Part 2 of Division 1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 1405, as introduced, Mullin. Electricity: Clean Peak Energy Standard.The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the procurement requirements established by the program.Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to reevaluate the determination not less than once every 3 years. Existing law requires the governing board of a local publicly owned electric utility to initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020.This bill would require the commission to ensure that an unspecified percentage of the energy delivered to ratepayers during the peakload time period by load-serving entities is derived from eligible renewable resources or energy storage systems. Because a violation of an order or direction of the commission would be a crime, this bill would impose a state-mandated local program. The bill would require local publicly owned electric utilities to ensure that an unspecified percentage of energy delivered to ratepayers during the peakload time period is derived from eligible renewable resources or energy storage systems. Because the bill would impose additional duties on a local agency, this bill would impose a state-mandated local program.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 specified reasons.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1405 Introduced by Assembly Member MullinFebruary 17, 2017 Introduced by Assembly Member Mullin February 17, 2017 An act to add Chapter 8.5 (commencing with Section 2847) to Part 2 of Division 1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1405, as introduced, Mullin. Electricity: Clean Peak Energy Standard. The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the procurement requirements established by the program.Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to reevaluate the determination not less than once every 3 years. Existing law requires the governing board of a local publicly owned electric utility to initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020.This bill would require the commission to ensure that an unspecified percentage of the energy delivered to ratepayers during the peakload time period by load-serving entities is derived from eligible renewable resources or energy storage systems. Because a violation of an order or direction of the commission would be a crime, this bill would impose a state-mandated local program. The bill would require local publicly owned electric utilities to ensure that an unspecified percentage of energy delivered to ratepayers during the peakload time period is derived from eligible renewable resources or energy storage systems. Because the bill would impose additional duties on a local agency, this bill would impose a state-mandated local program.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 specified reasons. The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the procurement requirements established by the program. Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to reevaluate the determination not less than once every 3 years. Existing law requires the governing board of a local publicly owned electric utility to initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. This bill would require the commission to ensure that an unspecified percentage of the energy delivered to ratepayers during the peakload time period by load-serving entities is derived from eligible renewable resources or energy storage systems. Because a violation of an order or direction of the commission would be a crime, this bill would impose a state-mandated local program. The bill would require local publicly owned electric utilities to ensure that an unspecified percentage of energy delivered to ratepayers during the peakload time period is derived from eligible renewable resources or energy storage systems. Because the bill would impose additional duties on a local agency, this bill would impose a state-mandated local program. 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 specified reasons. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Chapter 8.5 (commencing with Section 2847) is added to Part 2 of Division 1 of the Public Utilities Code, to read: CHAPTER 8.5. Clean Peak Energy Standard2847. For purposes of this chapter, the following definitions apply:(a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12.(b) Energy storage systems has the same meaning as set forth in Section 2835.(c) Load-serving entity has the same meaning as set forth in Section 380.(d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times.(e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time.2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.(b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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 XIIIB of the California Constitution. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Chapter 8.5 (commencing with Section 2847) is added to Part 2 of Division 1 of the Public Utilities Code, to read: CHAPTER 8.5. Clean Peak Energy Standard2847. For purposes of this chapter, the following definitions apply:(a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12.(b) Energy storage systems has the same meaning as set forth in Section 2835.(c) Load-serving entity has the same meaning as set forth in Section 380.(d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times.(e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time.2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.(b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid. SECTION 1. Chapter 8.5 (commencing with Section 2847) is added to Part 2 of Division 1 of the Public Utilities Code, to read: ### SECTION 1. CHAPTER 8.5. Clean Peak Energy Standard2847. For purposes of this chapter, the following definitions apply:(a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12.(b) Energy storage systems has the same meaning as set forth in Section 2835.(c) Load-serving entity has the same meaning as set forth in Section 380.(d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times.(e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time.2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.(b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid. CHAPTER 8.5. Clean Peak Energy Standard2847. For purposes of this chapter, the following definitions apply:(a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12.(b) Energy storage systems has the same meaning as set forth in Section 2835.(c) Load-serving entity has the same meaning as set forth in Section 380.(d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times.(e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time.2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.(b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid. CHAPTER 8.5. Clean Peak Energy Standard CHAPTER 8.5. Clean Peak Energy Standard 2847. For purposes of this chapter, the following definitions apply:(a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12.(b) Energy storage systems has the same meaning as set forth in Section 2835.(c) Load-serving entity has the same meaning as set forth in Section 380.(d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times.(e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time. 2847. For purposes of this chapter, the following definitions apply: (a) Eligible renewable energy resource has the same meaning as set forth in Section 399.12. (b) Energy storage systems has the same meaning as set forth in Section 2835. (c) Load-serving entity has the same meaning as set forth in Section 380. (d) Median peak demand time means the time that is calculated by determining the four months out of the year that have historically exhibited the highest peak demand, determining the time with the highest demand during each of those months over the previous five-year period, and determining the median from those 20 discrete times. (e) Peakload time period means a four-hour time period comprising the two hours prior to and two hours following the median peak demand time. 2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid.(b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid. 2847.1. (a) The commission shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period by each load-serving entity is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid. (b) Each local publicly owned electric utility shall ensure that ____ percent of the energy delivered to ratepayers during the peakload time period is derived from eligible renewable energy resources or energy storage systems that provide ratepayer benefits to the grid. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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 XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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 XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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 XIIIB of the California Constitution. ### SEC. 2.