Amended IN Senate April 10, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1339Introduced by Senator SternFebruary 16, 2018 An act to amend Section 769 add Chapter 4.5 (commencing with Section 8370) to Division 4.1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTSB 1339, as amended, Stern. Distributed resources plan. Electricity: electrical grid resiliency deployment plans: microgrids.(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.This bill would require each electrical corporation and local publicly owned electric utility, before an unspecified date, to develop and submit an electrical grid resiliency deployment plan to the commission and to establish a tariff or rate schedule for 3rd-party electrical grid resiliency investments. The bill would require the commission to approve plans that identify the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages affecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that maximizes the benefits, and minimizes the costs, to ratepayers. The bill would, to the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, authorize the recovery of those costs in rates.This bill would require each electrical corporation and local publicly owned electric utility, before July 1, 2019, to establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity, as defined, may expeditiously interconnect to, and nondiscriminatorily access, the electrical distribution grid.This bill would require each state agency to consider integrating microgrids into its infrastructure.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would require an order or other action of the commission to implement, and a violation of that order or action would be a crime, the bill would impose a state-mandated local program.In addition, by placing requirements upon local publicly owned electric utilities, the bill would impose a state-mandated local program.(2) The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board, on or before January 1, 2003, to adopt a certification program and uniform emission standards for electrical generation technologies that are exempt from district permitting requirements, as specified.This bill would require the state board, before June 1, 2020, to update those standards to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.(3) 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.Existing law requires each electrical corporation to submit to the Public Utilities Commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources. Existing law requires the plan, among other things, to evaluate the locational benefits and costs of distributed resources located on the distributed system, based on various factors.This bill would add to these factors, requiring the plan to base the evaluation additionally on the capacity for distributed resources to enhance the resiliency of the electrical grid.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 above requirement is codified in the Public Utilities Act, a violation of which would be a crime, 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 a specified reason.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. The Legislature finds and declares all of the following:(a) Climate change impacts Californias economy and residents in many ways, including by threatening critical infrastructure, increasing the frequency and severity of climate-related natural disasters, and interrupting critical services, such as the delivery of water, goods, and electricity.(b) Critical infrastructure, including, but not limited to, hospitals, health centers, data centers, and telecommunications, energy, financial service, water, and transportation infrastructure, comprises physical and virtual systems and assets so vital to California, especially in situations requiring a rapid emergency response or asset deployment, that the incapacity or destruction of them would have a debilitating impact on national and local security, public health and safety, and economic security.(c) The Office of Emergency Services State of California Threat and Hazard Identification and Risk Assessment outlined capability targets for infrastructure systems, including to stabilize critical infrastructure functions, such as energy, transportation, telecommunications, water and wastewater services, and public health and medical systems, within the first 72 hours after an incident.(d) A resilient energy system that is built with the capacity to withstand and rapidly recover from a service disruption, including, but not limited to, a deliberate attack, or an accident, fire, flood, mudslide, or other natural disaster, is necessary to preserve the economic vitality, public health and safety, and well-being of Californias citizenry in the face of natural threats to, or other interruptions of, Californias electrical supply. (e) Microgrids, and other distributed energy resources and transmission improvements, can make the electrical grid more resilient during and after disruptive events, as a potential source of backup generation and durable supply, to support and aid in the recovery of critical infrastructure functions in emergencies or during disruptions to the electrical supply. Generally, microgrids can enhance system reliability, provide economic benefits, and help the state meet its clean energy and greenhouse gas emissions reduction goals. (f) Microgrids can also reduce Californias reliance on diesel-fired backup generation resources and thereby help to achieve the states aggressive air quality goals, which were furthered by the enactment of Chapters 135 and 136 of the Statutes of 2017, and to ensure all communities achieve high air quality levels. The effects noted in subdivision (e) and this subdivision motivate the adoption of technology solutions with minimal negative impacts to local air pollution, like microgrids.(g) California could benefit from the implementation of microgrids at state-owned facilities and other critical infrastructure sites.SEC. 2. Chapter 4.5 (commencing with Section 8370) is added to Division 4.1 of the Public Utilities Code, to read: CHAPTER 4.5. Microgrids8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.(2) A microgrid may be owned by a load-serving entity or customer.(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally. (e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.(g) Each state agency shall consider integrating microgrids into its infrastructure.SEC. 3. Before June 1, 2020, the State Air Resources Board shall update the uniform emission standards for electrical generation technologies adopted pursuant to subdivision (a) of Section 41514.9 of the Health and Safety Code to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.SEC. 4. 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.SECTION 1.Section 769 of the Public Utilities Code is amended to read:769.(a)For purposes of this section, distributed resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b)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, the capacity for distributed resources to enhance the resiliency of the electrical grid, and any other savings the distributed resources provide to the electrical 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)Any 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.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.
Amended IN Senate April 10, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1339Introduced by Senator SternFebruary 16, 2018 An act to amend Section 769 add Chapter 4.5 (commencing with Section 8370) to Division 4.1 of the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTSB 1339, as amended, Stern. Distributed resources plan. Electricity: electrical grid resiliency deployment plans: microgrids.(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.This bill would require each electrical corporation and local publicly owned electric utility, before an unspecified date, to develop and submit an electrical grid resiliency deployment plan to the commission and to establish a tariff or rate schedule for 3rd-party electrical grid resiliency investments. The bill would require the commission to approve plans that identify the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages affecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that maximizes the benefits, and minimizes the costs, to ratepayers. The bill would, to the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, authorize the recovery of those costs in rates.This bill would require each electrical corporation and local publicly owned electric utility, before July 1, 2019, to establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity, as defined, may expeditiously interconnect to, and nondiscriminatorily access, the electrical distribution grid.This bill would require each state agency to consider integrating microgrids into its infrastructure.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would require an order or other action of the commission to implement, and a violation of that order or action would be a crime, the bill would impose a state-mandated local program.In addition, by placing requirements upon local publicly owned electric utilities, the bill would impose a state-mandated local program.(2) The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board, on or before January 1, 2003, to adopt a certification program and uniform emission standards for electrical generation technologies that are exempt from district permitting requirements, as specified.This bill would require the state board, before June 1, 2020, to update those standards to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.(3) 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.Existing law requires each electrical corporation to submit to the Public Utilities Commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources. Existing law requires the plan, among other things, to evaluate the locational benefits and costs of distributed resources located on the distributed system, based on various factors.This bill would add to these factors, requiring the plan to base the evaluation additionally on the capacity for distributed resources to enhance the resiliency of the electrical grid.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 above requirement is codified in the Public Utilities Act, a violation of which would be a crime, 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 a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Senate April 10, 2018
Amended IN Senate April 10, 2018
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 1339
Introduced by Senator SternFebruary 16, 2018
Introduced by Senator Stern
February 16, 2018
An act to amend Section 769 add Chapter 4.5 (commencing with Section 8370) to Division 4.1 of the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1339, as amended, Stern. Distributed resources plan. Electricity: electrical grid resiliency deployment plans: microgrids.
(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.This bill would require each electrical corporation and local publicly owned electric utility, before an unspecified date, to develop and submit an electrical grid resiliency deployment plan to the commission and to establish a tariff or rate schedule for 3rd-party electrical grid resiliency investments. The bill would require the commission to approve plans that identify the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages affecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that maximizes the benefits, and minimizes the costs, to ratepayers. The bill would, to the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, authorize the recovery of those costs in rates.This bill would require each electrical corporation and local publicly owned electric utility, before July 1, 2019, to establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity, as defined, may expeditiously interconnect to, and nondiscriminatorily access, the electrical distribution grid.This bill would require each state agency to consider integrating microgrids into its infrastructure.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would require an order or other action of the commission to implement, and a violation of that order or action would be a crime, the bill would impose a state-mandated local program.In addition, by placing requirements upon local publicly owned electric utilities, the bill would impose a state-mandated local program.(2) The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board, on or before January 1, 2003, to adopt a certification program and uniform emission standards for electrical generation technologies that are exempt from district permitting requirements, as specified.This bill would require the state board, before June 1, 2020, to update those standards to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.(3) 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.Existing law requires each electrical corporation to submit to the Public Utilities Commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources. Existing law requires the plan, among other things, to evaluate the locational benefits and costs of distributed resources located on the distributed system, based on various factors.This bill would add to these factors, requiring the plan to base the evaluation additionally on the capacity for distributed resources to enhance the resiliency of the electrical grid.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 above requirement is codified in the Public Utilities Act, a violation of which would be a crime, 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 a specified reason.
(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would require each electrical corporation and local publicly owned electric utility, before an unspecified date, to develop and submit an electrical grid resiliency deployment plan to the commission and to establish a tariff or rate schedule for 3rd-party electrical grid resiliency investments. The bill would require the commission to approve plans that identify the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages affecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that maximizes the benefits, and minimizes the costs, to ratepayers. The bill would, to the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, authorize the recovery of those costs in rates.
This bill would require each electrical corporation and local publicly owned electric utility, before July 1, 2019, to establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity, as defined, may expeditiously interconnect to, and nondiscriminatorily access, the electrical distribution grid.
This bill would require each state agency to consider integrating microgrids into its infrastructure.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would require an order or other action of the commission to implement, and a violation of that order or action would be a crime, the bill would impose a state-mandated local program.
In addition, by placing requirements upon local publicly owned electric utilities, the bill would impose a state-mandated local program.
(2) The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board, on or before January 1, 2003, to adopt a certification program and uniform emission standards for electrical generation technologies that are exempt from district permitting requirements, as specified.
This bill would require the state board, before June 1, 2020, to update those standards to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.
(3) 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.
Existing law requires each electrical corporation to submit to the Public Utilities Commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources. Existing law requires the plan, among other things, to evaluate the locational benefits and costs of distributed resources located on the distributed system, based on various factors.
This bill would add to these factors, requiring the plan to base the evaluation additionally on the capacity for distributed resources to enhance the resiliency of the electrical grid.
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 above requirement is codified in the Public Utilities Act, a violation of which would be a crime, 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 a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Climate change impacts Californias economy and residents in many ways, including by threatening critical infrastructure, increasing the frequency and severity of climate-related natural disasters, and interrupting critical services, such as the delivery of water, goods, and electricity.(b) Critical infrastructure, including, but not limited to, hospitals, health centers, data centers, and telecommunications, energy, financial service, water, and transportation infrastructure, comprises physical and virtual systems and assets so vital to California, especially in situations requiring a rapid emergency response or asset deployment, that the incapacity or destruction of them would have a debilitating impact on national and local security, public health and safety, and economic security.(c) The Office of Emergency Services State of California Threat and Hazard Identification and Risk Assessment outlined capability targets for infrastructure systems, including to stabilize critical infrastructure functions, such as energy, transportation, telecommunications, water and wastewater services, and public health and medical systems, within the first 72 hours after an incident.(d) A resilient energy system that is built with the capacity to withstand and rapidly recover from a service disruption, including, but not limited to, a deliberate attack, or an accident, fire, flood, mudslide, or other natural disaster, is necessary to preserve the economic vitality, public health and safety, and well-being of Californias citizenry in the face of natural threats to, or other interruptions of, Californias electrical supply. (e) Microgrids, and other distributed energy resources and transmission improvements, can make the electrical grid more resilient during and after disruptive events, as a potential source of backup generation and durable supply, to support and aid in the recovery of critical infrastructure functions in emergencies or during disruptions to the electrical supply. Generally, microgrids can enhance system reliability, provide economic benefits, and help the state meet its clean energy and greenhouse gas emissions reduction goals. (f) Microgrids can also reduce Californias reliance on diesel-fired backup generation resources and thereby help to achieve the states aggressive air quality goals, which were furthered by the enactment of Chapters 135 and 136 of the Statutes of 2017, and to ensure all communities achieve high air quality levels. The effects noted in subdivision (e) and this subdivision motivate the adoption of technology solutions with minimal negative impacts to local air pollution, like microgrids.(g) California could benefit from the implementation of microgrids at state-owned facilities and other critical infrastructure sites.SEC. 2. Chapter 4.5 (commencing with Section 8370) is added to Division 4.1 of the Public Utilities Code, to read: CHAPTER 4.5. Microgrids8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.(2) A microgrid may be owned by a load-serving entity or customer.(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally. (e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.(g) Each state agency shall consider integrating microgrids into its infrastructure.SEC. 3. Before June 1, 2020, the State Air Resources Board shall update the uniform emission standards for electrical generation technologies adopted pursuant to subdivision (a) of Section 41514.9 of the Health and Safety Code to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.SEC. 4. 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.SECTION 1.Section 769 of the Public Utilities Code is amended to read:769.(a)For purposes of this section, distributed resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b)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, the capacity for distributed resources to enhance the resiliency of the electrical grid, and any other savings the distributed resources provide to the electrical 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)Any 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.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.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Climate change impacts Californias economy and residents in many ways, including by threatening critical infrastructure, increasing the frequency and severity of climate-related natural disasters, and interrupting critical services, such as the delivery of water, goods, and electricity.(b) Critical infrastructure, including, but not limited to, hospitals, health centers, data centers, and telecommunications, energy, financial service, water, and transportation infrastructure, comprises physical and virtual systems and assets so vital to California, especially in situations requiring a rapid emergency response or asset deployment, that the incapacity or destruction of them would have a debilitating impact on national and local security, public health and safety, and economic security.(c) The Office of Emergency Services State of California Threat and Hazard Identification and Risk Assessment outlined capability targets for infrastructure systems, including to stabilize critical infrastructure functions, such as energy, transportation, telecommunications, water and wastewater services, and public health and medical systems, within the first 72 hours after an incident.(d) A resilient energy system that is built with the capacity to withstand and rapidly recover from a service disruption, including, but not limited to, a deliberate attack, or an accident, fire, flood, mudslide, or other natural disaster, is necessary to preserve the economic vitality, public health and safety, and well-being of Californias citizenry in the face of natural threats to, or other interruptions of, Californias electrical supply. (e) Microgrids, and other distributed energy resources and transmission improvements, can make the electrical grid more resilient during and after disruptive events, as a potential source of backup generation and durable supply, to support and aid in the recovery of critical infrastructure functions in emergencies or during disruptions to the electrical supply. Generally, microgrids can enhance system reliability, provide economic benefits, and help the state meet its clean energy and greenhouse gas emissions reduction goals. (f) Microgrids can also reduce Californias reliance on diesel-fired backup generation resources and thereby help to achieve the states aggressive air quality goals, which were furthered by the enactment of Chapters 135 and 136 of the Statutes of 2017, and to ensure all communities achieve high air quality levels. The effects noted in subdivision (e) and this subdivision motivate the adoption of technology solutions with minimal negative impacts to local air pollution, like microgrids.(g) California could benefit from the implementation of microgrids at state-owned facilities and other critical infrastructure sites.
SECTION 1. The Legislature finds and declares all of the following:(a) Climate change impacts Californias economy and residents in many ways, including by threatening critical infrastructure, increasing the frequency and severity of climate-related natural disasters, and interrupting critical services, such as the delivery of water, goods, and electricity.(b) Critical infrastructure, including, but not limited to, hospitals, health centers, data centers, and telecommunications, energy, financial service, water, and transportation infrastructure, comprises physical and virtual systems and assets so vital to California, especially in situations requiring a rapid emergency response or asset deployment, that the incapacity or destruction of them would have a debilitating impact on national and local security, public health and safety, and economic security.(c) The Office of Emergency Services State of California Threat and Hazard Identification and Risk Assessment outlined capability targets for infrastructure systems, including to stabilize critical infrastructure functions, such as energy, transportation, telecommunications, water and wastewater services, and public health and medical systems, within the first 72 hours after an incident.(d) A resilient energy system that is built with the capacity to withstand and rapidly recover from a service disruption, including, but not limited to, a deliberate attack, or an accident, fire, flood, mudslide, or other natural disaster, is necessary to preserve the economic vitality, public health and safety, and well-being of Californias citizenry in the face of natural threats to, or other interruptions of, Californias electrical supply. (e) Microgrids, and other distributed energy resources and transmission improvements, can make the electrical grid more resilient during and after disruptive events, as a potential source of backup generation and durable supply, to support and aid in the recovery of critical infrastructure functions in emergencies or during disruptions to the electrical supply. Generally, microgrids can enhance system reliability, provide economic benefits, and help the state meet its clean energy and greenhouse gas emissions reduction goals. (f) Microgrids can also reduce Californias reliance on diesel-fired backup generation resources and thereby help to achieve the states aggressive air quality goals, which were furthered by the enactment of Chapters 135 and 136 of the Statutes of 2017, and to ensure all communities achieve high air quality levels. The effects noted in subdivision (e) and this subdivision motivate the adoption of technology solutions with minimal negative impacts to local air pollution, like microgrids.(g) California could benefit from the implementation of microgrids at state-owned facilities and other critical infrastructure sites.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Climate change impacts Californias economy and residents in many ways, including by threatening critical infrastructure, increasing the frequency and severity of climate-related natural disasters, and interrupting critical services, such as the delivery of water, goods, and electricity.
(b) Critical infrastructure, including, but not limited to, hospitals, health centers, data centers, and telecommunications, energy, financial service, water, and transportation infrastructure, comprises physical and virtual systems and assets so vital to California, especially in situations requiring a rapid emergency response or asset deployment, that the incapacity or destruction of them would have a debilitating impact on national and local security, public health and safety, and economic security.
(c) The Office of Emergency Services State of California Threat and Hazard Identification and Risk Assessment outlined capability targets for infrastructure systems, including to stabilize critical infrastructure functions, such as energy, transportation, telecommunications, water and wastewater services, and public health and medical systems, within the first 72 hours after an incident.
(d) A resilient energy system that is built with the capacity to withstand and rapidly recover from a service disruption, including, but not limited to, a deliberate attack, or an accident, fire, flood, mudslide, or other natural disaster, is necessary to preserve the economic vitality, public health and safety, and well-being of Californias citizenry in the face of natural threats to, or other interruptions of, Californias electrical supply.
(e) Microgrids, and other distributed energy resources and transmission improvements, can make the electrical grid more resilient during and after disruptive events, as a potential source of backup generation and durable supply, to support and aid in the recovery of critical infrastructure functions in emergencies or during disruptions to the electrical supply. Generally, microgrids can enhance system reliability, provide economic benefits, and help the state meet its clean energy and greenhouse gas emissions reduction goals.
(f) Microgrids can also reduce Californias reliance on diesel-fired backup generation resources and thereby help to achieve the states aggressive air quality goals, which were furthered by the enactment of Chapters 135 and 136 of the Statutes of 2017, and to ensure all communities achieve high air quality levels. The effects noted in subdivision (e) and this subdivision motivate the adoption of technology solutions with minimal negative impacts to local air pollution, like microgrids.
(g) California could benefit from the implementation of microgrids at state-owned facilities and other critical infrastructure sites.
SEC. 2. Chapter 4.5 (commencing with Section 8370) is added to Division 4.1 of the Public Utilities Code, to read: CHAPTER 4.5. Microgrids8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.(2) A microgrid may be owned by a load-serving entity or customer.(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally. (e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.(g) Each state agency shall consider integrating microgrids into its infrastructure.
SEC. 2. Chapter 4.5 (commencing with Section 8370) is added to Division 4.1 of the Public Utilities Code, to read:
### SEC. 2.
CHAPTER 4.5. Microgrids8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.(2) A microgrid may be owned by a load-serving entity or customer.(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally. (e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.(g) Each state agency shall consider integrating microgrids into its infrastructure.
CHAPTER 4.5. Microgrids8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.(2) A microgrid may be owned by a load-serving entity or customer.(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally. (e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.(g) Each state agency shall consider integrating microgrids into its infrastructure.
CHAPTER 4.5. Microgrids
CHAPTER 4.5. Microgrids
8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.(2) A microgrid may be owned by a load-serving entity or customer.(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.
8370. For purposes of this chapter, the following definitions shall apply:
(a) Customer means a customer of a local publicly owned electric utility or an electrical corporation. A person or entity is a customer of an electrical corporation if the customer is physically located within the service territory of the electrical corporation and receives bundled service, distribution service, or transmission service from the electrical corporation.
(b) Distributed energy resource means an electric generation or storage technology that complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation.
(c) Grid islanding capacity means the capability of a microgrid to continue to provide electricity within its electrical boundary when the electrical grid is not providing the microgrid with electricity.
(d) Load-serving entity means an electrical corporation or local publicly owned electric utility.
(e) (1) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools, within a clearly defined electrical boundary that can act as a single, controllable, and grid-independent entity, can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.
(2) A microgrid may be owned by a load-serving entity or customer.
(f) Resiliency, as it relates to the electrical grid, means the ability of the electrical grid to adapt to changing weather or other conditions, and to withstand and rapidly recover from disruptions caused by an emergency, natural disaster, or other disturbance.
8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally. (e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.(g) Each state agency shall consider integrating microgrids into its infrastructure.
8371. (a) Before ____, each load-serving entity shall develop and submit an electrical grid resiliency deployment plan, including proposals to build, own, operate, and maintain resiliency investments, to the commission, which the commission shall approve or reject within 18 months of its submission, and shall establish a tariff or rate schedule for third-party resiliency investments.
(b) The commission shall, based on the best available data, in consultation with other agencies or entities as appropriate, including, but not limited to, the Office of Emergency Services, Energy Commission, Independent System Operator, and United States Department of Homeland Security, approve a load-serving entitys electrical grid resiliency deployment plan that identifies the investments necessary to increase the resiliency of the electrical grid and to reduce the risk of electrical outages effecting emergency services, critical circuits, and critical infrastructure, and that would increase resiliency in a manner that both maximizes the benefits and minimizes the costs to ratepayers.
(c) To the extent the commission determines that the installation and operation of a microgrid by a load-serving entity is in the public interest, the commission may authorize the recovery of those costs in rates.
(d) Before July 1, 2019, each load-serving entity shall establish a tariff or rate schedule by which a microgrid that can demonstrate grid islanding capacity may expeditiously interconnect to, and nondiscriminatorily access, the load-serving entitys electrical distribution grid. The tariff or rate schedule shall be fair and reasonable, accounting for the operational and societal benefits of microgrids generally.
(e) Each microgrid contract or tariff shall be identical, with respect to rate structure, retail rate components, and monthly charges, to the contract or tariff to which the customer would be assigned if the customer was not an eligible microgrid resource. The commission shall not, as part of a microgrid contract or tariff, approve any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase a microgrids costs beyond the rate class to which the eligible customer-generator would otherwise be assigned.
(f) A microgrid customer shall receive the net energy metering benefits established pursuant to Section 2827 for any excess generation the customer exports to the electrical grid.
(g) Each state agency shall consider integrating microgrids into its infrastructure.
SEC. 3. Before June 1, 2020, the State Air Resources Board shall update the uniform emission standards for electrical generation technologies adopted pursuant to subdivision (a) of Section 41514.9 of the Health and Safety Code to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.
SEC. 3. Before June 1, 2020, the State Air Resources Board shall update the uniform emission standards for electrical generation technologies adopted pursuant to subdivision (a) of Section 41514.9 of the Health and Safety Code to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.
SEC. 3. Before June 1, 2020, the State Air Resources Board shall update the uniform emission standards for electrical generation technologies adopted pursuant to subdivision (a) of Section 41514.9 of the Health and Safety Code to include a standard for oxides of sulfur and to update the standards for oxides of nitrogen and particulate matter.
### SEC. 3.
SEC. 4. 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. 4. 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. 4. 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. 4.
(a)For purposes of this section, distributed resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.
(b)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, the capacity for distributed resources to enhance the resiliency of the electrical grid, and any other savings the distributed resources provide to the electrical 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)Any 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.
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.