CA
California Senate Bill SB1339

California 2017-2018 Regular Session

California Senate Bill SB1339 Compare Versions

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1-Senate Bill No. 1339 CHAPTER 566 An act to add Chapter 4.5 (commencing with Section 8370) to Division 4.1 of the Public Utilities Code, relating to electricity. [ Approved by Governor September 19, 2018. Filed with Secretary of State September 19, 2018. ] LEGISLATIVE COUNSEL'S DIGESTSB 1339, Stern. Electricity: microgrids: tariffs.(1) Under existing law, the Public Utilities Commission (PUC) 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 the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. The bill would require the governing board of a local publicly owned electric utility to develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary.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 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. The Legislature finds and declares all of the following:(a) Many electricity customers are seeing the potential benefits of investing in their own distributed energy resources as part of microgrids, both to ensure their own level of reliability and to better manage their own usage.(b) Allowing the electricity customer to manage itself according to its needs, and then to act as an aggregated single entity to the distribution system operator, allows for a number of innovations and custom operations.(c) Electrical corporations and local publicly owned electric utilities are also seeing and exploring the potential benefits of investments in microgrids.(d) Key issues facing commercializing microgrids that must be addressed include all the following:(1) How microgrids operate and their value.(2) Improving the electrical grid with microgrids.(3) How microgrids can play a role in implementing policy goals.(4) How microgrids can support Californias policies to integrate a high concentration of distributed energy resources on the electrical grid.(5) How microgrids operate in the current California regulatory framework.(6) Microgrid technical challenges.(e) The Public Utilities Commission, Independent System Operator, and State Energy Resources Conservation and Development Commission must take action to help transition the microgrid from its current status as a promising emerging technology solution to a successful, cost-effective, safe, and reliable commercial product that helps California meet its future energy goals and provides end-use electricity customers new ways to manage their individual energy needs.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 of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.SEC. 3. 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.
1+Enrolled September 07, 2018 Passed IN Senate August 31, 2018 Passed IN Assembly August 31, 2018 Amended IN Assembly August 28, 2018 Amended IN Assembly August 24, 2018 Amended IN Assembly August 06, 2018 Amended IN Assembly July 05, 2018 Amended IN Assembly June 11, 2018 Amended IN Senate April 26, 2018 Amended IN Senate April 10, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1339Introduced by Senator SternFebruary 16, 2018 An act to 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, Stern. Electricity: microgrids: tariffs.(1) Under existing law, the Public Utilities Commission (PUC) 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 the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. The bill would require the governing board of a local publicly owned electric utility to develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary.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 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. The Legislature finds and declares all of the following:(a) Many electricity customers are seeing the potential benefits of investing in their own distributed energy resources as part of microgrids, both to ensure their own level of reliability and to better manage their own usage.(b) Allowing the electricity customer to manage itself according to its needs, and then to act as an aggregated single entity to the distribution system operator, allows for a number of innovations and custom operations.(c) Electrical corporations and local publicly owned electric utilities are also seeing and exploring the potential benefits of investments in microgrids.(d) Key issues facing commercializing microgrids that must be addressed include all the following:(1) How microgrids operate and their value.(2) Improving the electrical grid with microgrids.(3) How microgrids can play a role in implementing policy goals.(4) How microgrids can support Californias policies to integrate a high concentration of distributed energy resources on the electrical grid.(5) How microgrids operate in the current California regulatory framework.(6) Microgrid technical challenges.(e) The Public Utilities Commission, Independent System Operator, and State Energy Resources Conservation and Development Commission must take action to help transition the microgrid from its current status as a promising emerging technology solution to a successful, cost-effective, safe, and reliable commercial product that helps California meet its future energy goals and provides end-use electricity customers new ways to manage their individual energy needs.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 of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.SEC. 3. 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.
22
3- Senate Bill No. 1339 CHAPTER 566 An act to add Chapter 4.5 (commencing with Section 8370) to Division 4.1 of the Public Utilities Code, relating to electricity. [ Approved by Governor September 19, 2018. Filed with Secretary of State September 19, 2018. ] LEGISLATIVE COUNSEL'S DIGESTSB 1339, Stern. Electricity: microgrids: tariffs.(1) Under existing law, the Public Utilities Commission (PUC) 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 the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. The bill would require the governing board of a local publicly owned electric utility to develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary.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 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
3+ Enrolled September 07, 2018 Passed IN Senate August 31, 2018 Passed IN Assembly August 31, 2018 Amended IN Assembly August 28, 2018 Amended IN Assembly August 24, 2018 Amended IN Assembly August 06, 2018 Amended IN Assembly July 05, 2018 Amended IN Assembly June 11, 2018 Amended IN Senate April 26, 2018 Amended IN Senate April 10, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1339Introduced by Senator SternFebruary 16, 2018 An act to 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, Stern. Electricity: microgrids: tariffs.(1) Under existing law, the Public Utilities Commission (PUC) 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 the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. The bill would require the governing board of a local publicly owned electric utility to develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary.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 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
4+
5+ Enrolled September 07, 2018 Passed IN Senate August 31, 2018 Passed IN Assembly August 31, 2018 Amended IN Assembly August 28, 2018 Amended IN Assembly August 24, 2018 Amended IN Assembly August 06, 2018 Amended IN Assembly July 05, 2018 Amended IN Assembly June 11, 2018 Amended IN Senate April 26, 2018 Amended IN Senate April 10, 2018
6+
7+Enrolled September 07, 2018
8+Passed IN Senate August 31, 2018
9+Passed IN Assembly August 31, 2018
10+Amended IN Assembly August 28, 2018
11+Amended IN Assembly August 24, 2018
12+Amended IN Assembly August 06, 2018
13+Amended IN Assembly July 05, 2018
14+Amended IN Assembly June 11, 2018
15+Amended IN Senate April 26, 2018
16+Amended IN Senate April 10, 2018
17+
18+ CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
419
520 Senate Bill No. 1339
6-CHAPTER 566
21+
22+Introduced by Senator SternFebruary 16, 2018
23+
24+Introduced by Senator Stern
25+February 16, 2018
726
827 An act to add Chapter 4.5 (commencing with Section 8370) to Division 4.1 of the Public Utilities Code, relating to electricity.
9-
10- [ Approved by Governor September 19, 2018. Filed with Secretary of State September 19, 2018. ]
1128
1229 LEGISLATIVE COUNSEL'S DIGEST
1330
1431 ## LEGISLATIVE COUNSEL'S DIGEST
1532
1633 SB 1339, Stern. Electricity: microgrids: tariffs.
1734
1835 (1) Under existing law, the Public Utilities Commission (PUC) 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 the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. The bill would require the governing board of a local publicly owned electric utility to develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary.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 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.
1936
2037 (1) Under existing law, the Public Utilities Commission (PUC) 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.
2138
2239 This bill would require the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. The bill would require the governing board of a local publicly owned electric utility to develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary.
2340
2441 Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
2542
2643 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.
2744
2845 In addition, by placing requirements upon local publicly owned electric utilities, the bill would impose a state-mandated local program.
2946
3047 (2) 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.
3148
3249 This bill would provide that no reimbursement is required by this act for specified reasons.
3350
3451 ## Digest Key
3552
3653 ## Bill Text
3754
3855 The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Many electricity customers are seeing the potential benefits of investing in their own distributed energy resources as part of microgrids, both to ensure their own level of reliability and to better manage their own usage.(b) Allowing the electricity customer to manage itself according to its needs, and then to act as an aggregated single entity to the distribution system operator, allows for a number of innovations and custom operations.(c) Electrical corporations and local publicly owned electric utilities are also seeing and exploring the potential benefits of investments in microgrids.(d) Key issues facing commercializing microgrids that must be addressed include all the following:(1) How microgrids operate and their value.(2) Improving the electrical grid with microgrids.(3) How microgrids can play a role in implementing policy goals.(4) How microgrids can support Californias policies to integrate a high concentration of distributed energy resources on the electrical grid.(5) How microgrids operate in the current California regulatory framework.(6) Microgrid technical challenges.(e) The Public Utilities Commission, Independent System Operator, and State Energy Resources Conservation and Development Commission must take action to help transition the microgrid from its current status as a promising emerging technology solution to a successful, cost-effective, safe, and reliable commercial product that helps California meet its future energy goals and provides end-use electricity customers new ways to manage their individual energy needs.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 of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.SEC. 3. 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.
3956
4057 The people of the State of California do enact as follows:
4158
4259 ## The people of the State of California do enact as follows:
4360
4461 SECTION 1. The Legislature finds and declares all of the following:(a) Many electricity customers are seeing the potential benefits of investing in their own distributed energy resources as part of microgrids, both to ensure their own level of reliability and to better manage their own usage.(b) Allowing the electricity customer to manage itself according to its needs, and then to act as an aggregated single entity to the distribution system operator, allows for a number of innovations and custom operations.(c) Electrical corporations and local publicly owned electric utilities are also seeing and exploring the potential benefits of investments in microgrids.(d) Key issues facing commercializing microgrids that must be addressed include all the following:(1) How microgrids operate and their value.(2) Improving the electrical grid with microgrids.(3) How microgrids can play a role in implementing policy goals.(4) How microgrids can support Californias policies to integrate a high concentration of distributed energy resources on the electrical grid.(5) How microgrids operate in the current California regulatory framework.(6) Microgrid technical challenges.(e) The Public Utilities Commission, Independent System Operator, and State Energy Resources Conservation and Development Commission must take action to help transition the microgrid from its current status as a promising emerging technology solution to a successful, cost-effective, safe, and reliable commercial product that helps California meet its future energy goals and provides end-use electricity customers new ways to manage their individual energy needs.
4562
4663 SECTION 1. The Legislature finds and declares all of the following:(a) Many electricity customers are seeing the potential benefits of investing in their own distributed energy resources as part of microgrids, both to ensure their own level of reliability and to better manage their own usage.(b) Allowing the electricity customer to manage itself according to its needs, and then to act as an aggregated single entity to the distribution system operator, allows for a number of innovations and custom operations.(c) Electrical corporations and local publicly owned electric utilities are also seeing and exploring the potential benefits of investments in microgrids.(d) Key issues facing commercializing microgrids that must be addressed include all the following:(1) How microgrids operate and their value.(2) Improving the electrical grid with microgrids.(3) How microgrids can play a role in implementing policy goals.(4) How microgrids can support Californias policies to integrate a high concentration of distributed energy resources on the electrical grid.(5) How microgrids operate in the current California regulatory framework.(6) Microgrid technical challenges.(e) The Public Utilities Commission, Independent System Operator, and State Energy Resources Conservation and Development Commission must take action to help transition the microgrid from its current status as a promising emerging technology solution to a successful, cost-effective, safe, and reliable commercial product that helps California meet its future energy goals and provides end-use electricity customers new ways to manage their individual energy needs.
4764
4865 SECTION 1. The Legislature finds and declares all of the following:
4966
5067 ### SECTION 1.
5168
5269 (a) Many electricity customers are seeing the potential benefits of investing in their own distributed energy resources as part of microgrids, both to ensure their own level of reliability and to better manage their own usage.
5370
5471 (b) Allowing the electricity customer to manage itself according to its needs, and then to act as an aggregated single entity to the distribution system operator, allows for a number of innovations and custom operations.
5572
5673 (c) Electrical corporations and local publicly owned electric utilities are also seeing and exploring the potential benefits of investments in microgrids.
5774
5875 (d) Key issues facing commercializing microgrids that must be addressed include all the following:
5976
6077 (1) How microgrids operate and their value.
6178
6279 (2) Improving the electrical grid with microgrids.
6380
6481 (3) How microgrids can play a role in implementing policy goals.
6582
6683 (4) How microgrids can support Californias policies to integrate a high concentration of distributed energy resources on the electrical grid.
6784
6885 (5) How microgrids operate in the current California regulatory framework.
6986
7087 (6) Microgrid technical challenges.
7188
7289 (e) The Public Utilities Commission, Independent System Operator, and State Energy Resources Conservation and Development Commission must take action to help transition the microgrid from its current status as a promising emerging technology solution to a successful, cost-effective, safe, and reliable commercial product that helps California meet its future energy goals and provides end-use electricity customers new ways to manage their individual energy needs.
7390
7491 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 of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.
7592
7693 SEC. 2. Chapter 4.5 (commencing with Section 8370) is added to Division 4.1 of the Public Utilities Code, to read:
7794
7895 ### SEC. 2.
7996
8097 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 of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.
8198
8299 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 of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.
83100
84101 CHAPTER 4.5. Microgrids
85102
86103 CHAPTER 4.5. Microgrids
87104
88105 8370. For purposes of this chapter, the following definitions shall apply:(a) Customer means a customer of a local publicly owned electric utility or of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large 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) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.
89106
90107
91108
92109 8370. For purposes of this chapter, the following definitions shall apply:
93110
94111 (a) Customer means a customer of a local publicly owned electric utility or of a large electrical corporation. A person or entity is a customer of a large electrical corporation if the customer is physically located within the service territory of the large electrical corporation and receives bundled service, distribution service, or transmission service from the large electrical corporation.
95112
96113 (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.
97114
98115 (c) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.
99116
100117 (d) Microgrid means an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting, and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and 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.
101118
102119 8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:(a) Develop microgrid service standards necessary to meet state and local permitting requirements.(b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.(c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.(d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.(f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.
103120
104121
105122
106123 8371. The commission, in consultation with the Energy Commission and the Independent System Operator, shall take all of the following actions by December 1, 2020, to facilitate the commercialization of microgrids for distribution customers of large electrical corporations:
107124
108125 (a) Develop microgrid service standards necessary to meet state and local permitting requirements.
109126
110127 (b) Without shifting costs between ratepayers, develop methods to reduce barriers for microgrid deployment.
111128
112129 (c) Develop guidelines that determine what impact studies are required for microgrids to connect to the electrical corporation grid.
113130
114131 (d) Without shifting costs between ratepayers, develop separate large electrical corporation rates and tariffs, as necessary, to support microgrids, while ensuring that system, public, and worker safety are given the highest priority. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.
115132
116133 (e) Form a working group to codify standards and protocols needed to meet California electrical corporation and Independent System Operator microgrid requirements.
117134
118135 (f) Develop a standard for direct current metering in Electric Rule 21 to streamline the interconnection process and lower interconnection costs for direct current microgrid applications.
119136
120137 8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.
121138
122139
123140
124141 8371.5. Nothing in this chapter shall discourage or prohibit the development or ownership of a microgrid by an electrical corporation.
125142
126143 8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.(b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.
127144
128145
129146
130147 8372. (a) Within 180 days of the first request from a customer or developer to establish a microgrid, the governing board of a local publicly owned electric utility shall develop and make available a standardized process for the interconnection of a customer-supported microgrid, including separate electrical rates and tariffs, as necessary. The separate rates and tariffs shall not compensate a customer for the use of diesel backup or natural gas generation, except as either of those sources is used pursuant to Section 41514.1 of the Health and Safety Code, or except for natural gas generation that is a distributed energy resource.
131148
132149 (b) The governing board shall ensure the microgrid rates and charges do not shift costs to, or from, a microgrid customer or nonmicrogrid customer, and shall ensure each microgrid and its components comply with the local publicly owned electric utilitys applicable regulatory requirements.
133150
134151 SEC. 3. 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.
135152
136153 SEC. 3. 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.
137154
138155 SEC. 3. 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.
139156
140157 ### SEC. 3.