CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1664Introduced by Assembly Member FriedmanFebruary 17, 2023 An act to amend Section 769 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 1664, as introduced, Friedman. Energy: distributed energy resources: distribution resources plans.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires each electrical corporation to submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources, as defined. Existing law requires that each proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed resources that satisfy distribution planning objectives and propose cost-effective methods of effectively coordinating existing commission-approved programs, incentives, and tariffs, as specified.This bill would change the phrase distributed resources to distributed energy resources in the described-above provisions. The bill would require that each distribution resources plan proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed energy resources that also satisfy resiliency objectives and propose cost-effective methods of effectively coordinating existing state-funded and ratepayer-funded, rather than commission-approved, programs, incentives, and tariffs, as specified.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above provision would be a part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 769 of the Public Utilities Code is amended to read:769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1664Introduced by Assembly Member FriedmanFebruary 17, 2023 An act to amend Section 769 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 1664, as introduced, Friedman. Energy: distributed energy resources: distribution resources plans.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires each electrical corporation to submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources, as defined. Existing law requires that each proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed resources that satisfy distribution planning objectives and propose cost-effective methods of effectively coordinating existing commission-approved programs, incentives, and tariffs, as specified.This bill would change the phrase distributed resources to distributed energy resources in the described-above provisions. The bill would require that each distribution resources plan proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed energy resources that also satisfy resiliency objectives and propose cost-effective methods of effectively coordinating existing state-funded and ratepayer-funded, rather than commission-approved, programs, incentives, and tariffs, as specified.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above provision would be a part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1664
Introduced by Assembly Member FriedmanFebruary 17, 2023
Introduced by Assembly Member Friedman
February 17, 2023
An act to amend Section 769 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1664, as introduced, Friedman. Energy: distributed energy resources: distribution resources plans.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires each electrical corporation to submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources, as defined. Existing law requires that each proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed resources that satisfy distribution planning objectives and propose cost-effective methods of effectively coordinating existing commission-approved programs, incentives, and tariffs, as specified.This bill would change the phrase distributed resources to distributed energy resources in the described-above provisions. The bill would require that each distribution resources plan proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed energy resources that also satisfy resiliency objectives and propose cost-effective methods of effectively coordinating existing state-funded and ratepayer-funded, rather than commission-approved, programs, incentives, and tariffs, as specified.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above provision would be a part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires each electrical corporation to submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources, as defined. Existing law requires that each proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed resources that satisfy distribution planning objectives and propose cost-effective methods of effectively coordinating existing commission-approved programs, incentives, and tariffs, as specified.
This bill would change the phrase distributed resources to distributed energy resources in the described-above provisions. The bill would require that each distribution resources plan proposal, among other things, propose or identify mechanisms for the deployment of cost-effective distributed energy resources that also satisfy resiliency objectives and propose cost-effective methods of effectively coordinating existing state-funded and ratepayer-funded, rather than commission-approved, programs, incentives, and tariffs, as specified.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above provision would be a part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 769 of the Public Utilities Code is amended to read:769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 769 of the Public Utilities Code is amended to read:769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.
SECTION 1. Section 769 of the Public Utilities Code is amended to read:
### SECTION 1.
769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.
769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.
769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.
769. (a) For purposes of this section, distributed energy resources means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.
(b) Not later than July 1, 2015, each Each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources. Each proposal shall do all of the following:
(1) Evaluate locational benefits and costs of distributed energy resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed energy resources provide to the electrical grid or costs to ratepayers of the electrical corporation.
(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed energy resources that satisfy distribution planning and resiliency objectives.
(3) Propose cost-effective methods of effectively coordinating existing commission-approved state-funded and ratepayer-funded programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed energy resources.
(4) Identify any additional utility spending necessary to integrate cost-effective distributed energy resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.
(5) Identify barriers to the deployment of distributed energy resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.
(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed energy resources.
(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 2.