California 2023-2024 Regular Session

California Assembly Bill AB2891 Compare Versions

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1-Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2891Introduced by Assembly Member FriedmanFebruary 15, 2024An act to add Section 25403.6 to the Public Resources Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2891, as amended, Friedman. Energy: electrical demand forecasts.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.This bill would require the Energy Commission, on or before July December 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards modification protocols, as defined, to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market fossil fuel-based resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.(b) For purposes of this section, load-serving the following definitions apply:(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
1+CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2891Introduced by Assembly Member FriedmanFebruary 15, 2024 An act to add Section 25403.6 to the Public Resources Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2891, as introduced, Friedman. Energy: electrical demand forecasts.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.This bill would require the Energy Commission, on or before July 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
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3- Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2891Introduced by Assembly Member FriedmanFebruary 15, 2024An act to add Section 25403.6 to the Public Resources Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2891, as amended, Friedman. Energy: electrical demand forecasts.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.This bill would require the Energy Commission, on or before July December 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards modification protocols, as defined, to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2891Introduced by Assembly Member FriedmanFebruary 15, 2024 An act to add Section 25403.6 to the Public Resources Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2891, as introduced, Friedman. Energy: electrical demand forecasts.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.This bill would require the Energy Commission, on or before July 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5- Amended IN Assembly March 21, 2024
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7-Amended IN Assembly March 21, 2024
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7+
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99 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
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1111 Assembly Bill
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1313 No. 2891
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1515 Introduced by Assembly Member FriedmanFebruary 15, 2024
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1717 Introduced by Assembly Member Friedman
1818 February 15, 2024
1919
2020 An act to add Section 25403.6 to the Public Resources Code, relating to electricity.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
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2424 ## LEGISLATIVE COUNSEL'S DIGEST
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26-AB 2891, as amended, Friedman. Energy: electrical demand forecasts.
26+AB 2891, as introduced, Friedman. Energy: electrical demand forecasts.
2727
28-Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.This bill would require the Energy Commission, on or before July December 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards modification protocols, as defined, to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.
28+Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.This bill would require the Energy Commission, on or before July 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.
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3030 Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the Energy Commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts.
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32-This bill would require the Energy Commission, on or before July December 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards modification protocols, as defined, to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.
32+This bill would require the Energy Commission, on or before July 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified.
3333
3434 ## Digest Key
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3636 ## Bill Text
3737
38-The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market fossil fuel-based resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.(b) For purposes of this section, load-serving the following definitions apply:(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
38+The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
3939
4040 The people of the State of California do enact as follows:
4141
4242 ## The people of the State of California do enact as follows:
4343
44-SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market fossil fuel-based resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.
44+SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.
4545
46-SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market fossil fuel-based resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.
46+SECTION 1. (a) The Legislature finds and declares all of the following:(1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.(2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market resource procurement to reduce near-term grid outage risks.(4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.(5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.
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4848 SECTION 1. (a) The Legislature finds and declares all of the following:
4949
5050 ### SECTION 1.
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5252 (1) Decarbonization of Californias economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility enabled by load automation technologies.
5353
5454 (2) Reducing Californias reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the states reliability planning and market operations.
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56-(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market fossil fuel-based resource procurement to reduce near-term grid outage risks.
56+(3) Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs into the states electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to wholesale market needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility. This has led to an increased reliance on costly emergency-based approaches and out-of-market resource procurement to reduce near-term grid outage risks.
5757
5858 (4) In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission with authority to set load management standards to increase demand flexibility on the grid and has appropriated funding for demand-side and distributed energy resource incentives. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commissions responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the states reliability planning and wholesale capacity market to reduce the states reliance on costly emergency-based or out-of-market approaches.
5959
6060 (5) Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market participants alike.
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62-(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.
62+(b) It is the intent of the Legislature that the State Energy Resources Conservation and Development Commission should, through its load management rulemaking proceeding and experience administering distributed resource incentives, develop a set of technical guidance and load automation standards to enable the state to reduce or modify its electrical demand forecast to improve grid reliability.
6363
64-SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.(b) For purposes of this section, load-serving the following definitions apply:(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
64+SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
6565
6666 SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:
6767
6868 ### SEC. 2.
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70-25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.(b) For purposes of this section, load-serving the following definitions apply:(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
70+25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
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72-25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.(b) For purposes of this section, load-serving the following definitions apply:(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
72+25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
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74-25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.(b) For purposes of this section, load-serving the following definitions apply:(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
74+25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
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78-25403.6. (a) (1) On or before July December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards modification protocols to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards protocols shall be met by the resource aggregator through the deployment of load automation modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.
78+25403.6. (a) (1) On or before July 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, shall adopt a set of upfront technical requirements and load automation standards to provide the option for a load-serving entity to reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation. These requirements and standards shall be met by the resource aggregator through the deployment of load automation technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entitys electrical demand.
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80-(2) In developing the requirements and standards protocols pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards. protocols.
80+(2) In developing the requirements and standards pursuant to paragraph (1), the commission may use available funding appropriated by the Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities to facilitate a high degree of confidence for flexible demand performance under the adopted requirements and standards.
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82-(b) For purposes of this section, load-serving the following definitions apply:
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84-(1) Load modification protocols means a combination of capabilities and operational parameters to confidently reduce a load-serving entitys electrical demand forecast for any specified hour or hours.
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86-(2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.
82+(b) For purposes of this section, load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.