California 2017 2017-2018 Regular Session

California Senate Bill SB1369 Amended / Bill

Filed 08/20/2018

                    Amended IN  Assembly  August 20, 2018 Amended IN  Assembly  August 06, 2018 Amended IN  Assembly  June 27, 2018 Amended IN  Assembly  June 13, 2018 Amended IN  Senate  May 02, 2018 Amended IN  Senate  April 11, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1369Introduced by Senator Skinner(Coauthor: Senator Hertzberg)February 16, 2018 An act to add Section 25604 to the Public Resources Code, and to amend Section 400 of, and to add Section 400.2 to, the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 1369, as amended, Skinner. Energy: green electrolytic hydrogen.Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board (state board) as the state agency responsible for monitoring and regulating sources emitting greenhouse gases and requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act requires the state board to adopt a statewide greenhouse gas emissions limit to be achieved by 2020 equivalent to the statewide greenhouse gas emissions levels in 1990, and to ensure that statewide emissions of greenhouse gases are reduced to at least 40% below the statewide greenhouse gas emissions limit no later than December 31, 2030.This bill would require the state board, in consultation with the PUC, to develop up to 3 green electrolytic hydrogen pilot projects meeting certain criteria by January 1, 2021, to produce green electrolytic hydrogen, as defined, and to evaluate methods for reducing the cost and energy intensity of producing that hydrogen. The bill would require that the pilot projects be funded by the state board, to the extent funding is available.Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies.This bill would specify green electrolytic hydrogen hydrogen, as defined, as one of these energy storage technologies to be targeted for increased use.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YESNO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1.The Legislature finds and declares all of the following:(a)Green electrolytic hydrogen, which is hydrogen gas produced through electrolysis, has become more available and cost effective due to the successful development of new low-cost renewable energy resources, like solar and wind.(b)Green electrolytic hydrogen production optimizes valuable eligible renewable energy resources, particularly intermittently generated electricity by converting electricity to green electrolytic hydrogen.(c)Green electrolytic hydrogen will be an important resource to assist the state to maximize intermittent electricity generation and energy storage for short-term, long-term, and seasonal storage applications in the future, as the electrical systems integrates higher levels of intermittent low-cost electricity from eligible renewable energy resources.(d)Californias goals for reducing emissions of greenhouse gases can be served by utilizing, to the maximum extent possible, eligible renewable energy resources either directly to serve consumers of electricity or indirectly through green electrolytic hydrogen production to replace existing natural gas applications, including displacing natural gas, gasoline, or other fossil fuel-derived gases for electric generation, heating sources, transportation fuels, and other industrial practices.(e)Green electrolytic hydrogen can assist with reducing emissions of greenhouse gases by leveraging the success of the California Renewables Portfolio Standard Program to further reduce emissions of greenhouse gases and criteria air pollutants from other sectors, including the gas and transportation sectors, as an important next step for deeper decarbonization across all economic sectors to meet the states overall goals for reducing emissions of greenhouse gases.(f)Electrification is an established pathway for reducing emissions of greenhouse gases in California, and green electrolytic hydrogen will contribute to the electrification of more energy loads across the power generation, industrial, heating and transportation sectors.(g)Green electrolytic hydrogen is an effective means of displacing natural gas use for generation of electricity and leveraging available capacity in the transmission and distribution system.(h)Utilizing existing energy infrastructure to produce, store, or use green electrolytic hydrogen will benefit consumers by avoiding new, redundant, and excess energy infrastructure and optimizing the use of current system investments.SEC. 2.Section 25604 is added to the Public Resources Code, to read:25604.(a)For purposes of this section, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock.(b)The State Air Resources Board, in consultation with the Public Utilities Commission, shall develop up to three green electrolytic hydrogen pilot projects by January 1, 2021, to produce green electrolytic hydrogen and to evaluate methods for accomplishing both of the following:(1)Reducing the costs of producing green electrolytic hydrogen.(2)Reducing the energy intensity associated with the production of green electrolytic hydrogen.(c)A pilot project shall meet the following criteria:(1)Have a capacity no greater than five megawatts, unless the commission determines that higher usage is appropriate.(2)Facilitate reductions in emissions of greenhouse gases and criteria air pollutants.(3)Produce electrical system benefits and reduce fossil fuel derived natural gas usage.(d)The pilot projects shall be distributed among various load-serving entities, as defined in Section 380 of the Public Utilities Code.(e)The pilot projects shall be funded by the state board, to the extent funding is available.SEC. 3.SECTION 1. Section 400 of the Public Utilities Code is amended to read:400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.SEC. 4.SEC. 2. Section 400.2 is added to the Public Utilities Code, to read:400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock. 

 Amended IN  Assembly  August 20, 2018 Amended IN  Assembly  August 06, 2018 Amended IN  Assembly  June 27, 2018 Amended IN  Assembly  June 13, 2018 Amended IN  Senate  May 02, 2018 Amended IN  Senate  April 11, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1369Introduced by Senator Skinner(Coauthor: Senator Hertzberg)February 16, 2018 An act to add Section 25604 to the Public Resources Code, and to amend Section 400 of, and to add Section 400.2 to, the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 1369, as amended, Skinner. Energy: green electrolytic hydrogen.Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board (state board) as the state agency responsible for monitoring and regulating sources emitting greenhouse gases and requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act requires the state board to adopt a statewide greenhouse gas emissions limit to be achieved by 2020 equivalent to the statewide greenhouse gas emissions levels in 1990, and to ensure that statewide emissions of greenhouse gases are reduced to at least 40% below the statewide greenhouse gas emissions limit no later than December 31, 2030.This bill would require the state board, in consultation with the PUC, to develop up to 3 green electrolytic hydrogen pilot projects meeting certain criteria by January 1, 2021, to produce green electrolytic hydrogen, as defined, and to evaluate methods for reducing the cost and energy intensity of producing that hydrogen. The bill would require that the pilot projects be funded by the state board, to the extent funding is available.Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies.This bill would specify green electrolytic hydrogen hydrogen, as defined, as one of these energy storage technologies to be targeted for increased use.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YESNO  Local Program: NO 

 Amended IN  Assembly  August 20, 2018 Amended IN  Assembly  August 06, 2018 Amended IN  Assembly  June 27, 2018 Amended IN  Assembly  June 13, 2018 Amended IN  Senate  May 02, 2018 Amended IN  Senate  April 11, 2018

Amended IN  Assembly  August 20, 2018
Amended IN  Assembly  August 06, 2018
Amended IN  Assembly  June 27, 2018
Amended IN  Assembly  June 13, 2018
Amended IN  Senate  May 02, 2018
Amended IN  Senate  April 11, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Senate Bill No. 1369

Introduced by Senator Skinner(Coauthor: Senator Hertzberg)February 16, 2018

Introduced by Senator Skinner(Coauthor: Senator Hertzberg)
February 16, 2018

 An act to add Section 25604 to the Public Resources Code, and to amend Section 400 of, and to add Section 400.2 to, the Public Utilities Code, relating to energy. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 1369, as amended, Skinner. Energy: green electrolytic hydrogen.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board (state board) as the state agency responsible for monitoring and regulating sources emitting greenhouse gases and requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act requires the state board to adopt a statewide greenhouse gas emissions limit to be achieved by 2020 equivalent to the statewide greenhouse gas emissions levels in 1990, and to ensure that statewide emissions of greenhouse gases are reduced to at least 40% below the statewide greenhouse gas emissions limit no later than December 31, 2030.This bill would require the state board, in consultation with the PUC, to develop up to 3 green electrolytic hydrogen pilot projects meeting certain criteria by January 1, 2021, to produce green electrolytic hydrogen, as defined, and to evaluate methods for reducing the cost and energy intensity of producing that hydrogen. The bill would require that the pilot projects be funded by the state board, to the extent funding is available.Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies.This bill would specify green electrolytic hydrogen hydrogen, as defined, as one of these energy storage technologies to be targeted for increased use.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board (state board) as the state agency responsible for monitoring and regulating sources emitting greenhouse gases and requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act requires the state board to adopt a statewide greenhouse gas emissions limit to be achieved by 2020 equivalent to the statewide greenhouse gas emissions levels in 1990, and to ensure that statewide emissions of greenhouse gases are reduced to at least 40% below the statewide greenhouse gas emissions limit no later than December 31, 2030.



This bill would require the state board, in consultation with the PUC, to develop up to 3 green electrolytic hydrogen pilot projects meeting certain criteria by January 1, 2021, to produce green electrolytic hydrogen, as defined, and to evaluate methods for reducing the cost and energy intensity of producing that hydrogen. The bill would require that the pilot projects be funded by the state board, to the extent funding is available.



Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies.

This bill would specify green electrolytic hydrogen hydrogen, as defined, as one of these energy storage technologies to be targeted for increased use.

## 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)Green electrolytic hydrogen, which is hydrogen gas produced through electrolysis, has become more available and cost effective due to the successful development of new low-cost renewable energy resources, like solar and wind.(b)Green electrolytic hydrogen production optimizes valuable eligible renewable energy resources, particularly intermittently generated electricity by converting electricity to green electrolytic hydrogen.(c)Green electrolytic hydrogen will be an important resource to assist the state to maximize intermittent electricity generation and energy storage for short-term, long-term, and seasonal storage applications in the future, as the electrical systems integrates higher levels of intermittent low-cost electricity from eligible renewable energy resources.(d)Californias goals for reducing emissions of greenhouse gases can be served by utilizing, to the maximum extent possible, eligible renewable energy resources either directly to serve consumers of electricity or indirectly through green electrolytic hydrogen production to replace existing natural gas applications, including displacing natural gas, gasoline, or other fossil fuel-derived gases for electric generation, heating sources, transportation fuels, and other industrial practices.(e)Green electrolytic hydrogen can assist with reducing emissions of greenhouse gases by leveraging the success of the California Renewables Portfolio Standard Program to further reduce emissions of greenhouse gases and criteria air pollutants from other sectors, including the gas and transportation sectors, as an important next step for deeper decarbonization across all economic sectors to meet the states overall goals for reducing emissions of greenhouse gases.(f)Electrification is an established pathway for reducing emissions of greenhouse gases in California, and green electrolytic hydrogen will contribute to the electrification of more energy loads across the power generation, industrial, heating and transportation sectors.(g)Green electrolytic hydrogen is an effective means of displacing natural gas use for generation of electricity and leveraging available capacity in the transmission and distribution system.(h)Utilizing existing energy infrastructure to produce, store, or use green electrolytic hydrogen will benefit consumers by avoiding new, redundant, and excess energy infrastructure and optimizing the use of current system investments.SEC. 2.Section 25604 is added to the Public Resources Code, to read:25604.(a)For purposes of this section, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock.(b)The State Air Resources Board, in consultation with the Public Utilities Commission, shall develop up to three green electrolytic hydrogen pilot projects by January 1, 2021, to produce green electrolytic hydrogen and to evaluate methods for accomplishing both of the following:(1)Reducing the costs of producing green electrolytic hydrogen.(2)Reducing the energy intensity associated with the production of green electrolytic hydrogen.(c)A pilot project shall meet the following criteria:(1)Have a capacity no greater than five megawatts, unless the commission determines that higher usage is appropriate.(2)Facilitate reductions in emissions of greenhouse gases and criteria air pollutants.(3)Produce electrical system benefits and reduce fossil fuel derived natural gas usage.(d)The pilot projects shall be distributed among various load-serving entities, as defined in Section 380 of the Public Utilities Code.(e)The pilot projects shall be funded by the state board, to the extent funding is available.SEC. 3.SECTION 1. Section 400 of the Public Utilities Code is amended to read:400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.SEC. 4.SEC. 2. Section 400.2 is added to the Public Utilities Code, to read:400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock. 

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:



The Legislature finds and declares all of the following:



(a)Green electrolytic hydrogen, which is hydrogen gas produced through electrolysis, has become more available and cost effective due to the successful development of new low-cost renewable energy resources, like solar and wind.



(b)Green electrolytic hydrogen production optimizes valuable eligible renewable energy resources, particularly intermittently generated electricity by converting electricity to green electrolytic hydrogen.



(c)Green electrolytic hydrogen will be an important resource to assist the state to maximize intermittent electricity generation and energy storage for short-term, long-term, and seasonal storage applications in the future, as the electrical systems integrates higher levels of intermittent low-cost electricity from eligible renewable energy resources.



(d)Californias goals for reducing emissions of greenhouse gases can be served by utilizing, to the maximum extent possible, eligible renewable energy resources either directly to serve consumers of electricity or indirectly through green electrolytic hydrogen production to replace existing natural gas applications, including displacing natural gas, gasoline, or other fossil fuel-derived gases for electric generation, heating sources, transportation fuels, and other industrial practices.



(e)Green electrolytic hydrogen can assist with reducing emissions of greenhouse gases by leveraging the success of the California Renewables Portfolio Standard Program to further reduce emissions of greenhouse gases and criteria air pollutants from other sectors, including the gas and transportation sectors, as an important next step for deeper decarbonization across all economic sectors to meet the states overall goals for reducing emissions of greenhouse gases.



(f)Electrification is an established pathway for reducing emissions of greenhouse gases in California, and green electrolytic hydrogen will contribute to the electrification of more energy loads across the power generation, industrial, heating and transportation sectors.



(g)Green electrolytic hydrogen is an effective means of displacing natural gas use for generation of electricity and leveraging available capacity in the transmission and distribution system.



(h)Utilizing existing energy infrastructure to produce, store, or use green electrolytic hydrogen will benefit consumers by avoiding new, redundant, and excess energy infrastructure and optimizing the use of current system investments.







(a)For purposes of this section, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock.



(b)The State Air Resources Board, in consultation with the Public Utilities Commission, shall develop up to three green electrolytic hydrogen pilot projects by January 1, 2021, to produce green electrolytic hydrogen and to evaluate methods for accomplishing both of the following:



(1)Reducing the costs of producing green electrolytic hydrogen.



(2)Reducing the energy intensity associated with the production of green electrolytic hydrogen.



(c)A pilot project shall meet the following criteria:



(1)Have a capacity no greater than five megawatts, unless the commission determines that higher usage is appropriate.



(2)Facilitate reductions in emissions of greenhouse gases and criteria air pollutants.



(3)Produce electrical system benefits and reduce fossil fuel derived natural gas usage.



(d)The pilot projects shall be distributed among various load-serving entities, as defined in Section 380 of the Public Utilities Code.



(e)The pilot projects shall be funded by the state board, to the extent funding is available.



SEC. 3.SECTION 1. Section 400 of the Public Utilities Code is amended to read:400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.

SEC. 3.SECTION 1. Section 400 of the Public Utilities Code is amended to read:

### SEC. 3.SECTION 1.

400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.

400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.

400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.



400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the states clean energy and pollution reduction objectives:

(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.

(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.

(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.

(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.

(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.

(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.

(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015.

(g) (1) Establish a disadvantaged community advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The disadvantaged community advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.

(2) Each member of the disadvantaged community advisory group shall receive per diem and shall be reimbursed for travel and other necessary expenses incurred in the performance of his or her duties under this section. The total amount of money expended for panel expenses pursuant to this paragraph shall not exceed one hundred thousand dollars ($100,000) per year.

(3) For the purposes of paragraph (2), per diem, travel and other necessary expenses shall be funded equally by the commission and the Energy Commission.

SEC. 4.SEC. 2. Section 400.2 is added to the Public Utilities Code, to read:400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock. 

SEC. 4.SEC. 2. Section 400.2 is added to the Public Utilities Code, to read:

### SEC. 4.SEC. 2.

400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock. 

400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock. 

400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock. 



400.2. For the purposes of this article, green electrolytic hydrogen means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock.