Amended IN Senate May 02, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 664Introduced by Senator SternFebruary 16, 2023 An act to amend Section 25793 of, and to add Section 25302.8 to, to the Public Resources Code, and to amend Section 454.53 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 664, as amended, Stern. Energy: renewable energy resources and zero-carbon resources. demand forecast: weather events.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), on a biennial basis, to adopt an integrated energy policy report containing an overview of major trends and issues facing the state. Existing law requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers all aspects of energy industries and markets that are essential for the state economy, general welfare, public health and safety, energy diversity, and protection of the environment.This bill would require the Energy Commission ensure that the demand forecasts in the integrated energy policy report account for multiday extreme and atypical weather events and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.Existing law created the Strategic Reliability Reserve Fund, a continuously appropriated fund, for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition. Existing law authorizes the Energy Commission to approve a contract, grant, or loan entered into for those purposes.This bill would require a contracted resource for which a contract, grant, or loan is entered into on or after January 1, 2024, to be an eligible renewable energy resource or a zero-carbon resource.Existing law states the state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customer by December 31, 2035, 95% by December 31, 2040, and 100% by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035. Existing law requires the Public Utilities Commission, the Energy Commission, and the State Air Resources Board, on a 4-year basis, to issue a joint report to the Legislature that includes, among other things, alternative scenarios in which that state policy can be achieved and the estimated costs and benefits of each scenario.This bill would require that the alternative scenarios include scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe and the estimated greenhouse gas emissions reductions for each scenario.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. Section 25302.8 is added to the Public Resources Code, to read:25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.SEC. 2.Section 25793 of the Public Resources Code is amended to read:25793.(a)The Strategic Reliability Reserve Fund is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the moneys in the fund and the accounts contained in the fund are hereby continuously appropriated without regard to fiscal year to be expended by the commission for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition.(b)The Distributed Electricity Backup Assets Account is hereby created in the fund, to be administered by the commission to implement the Distributed Electricity Backup Assets Program in accordance with Article 2 (commencing with Section 25791).(c)The Demand Side Grid Support Account is hereby created in the fund, to be administered by the commission to implement the Demand Side Grid Support Program in accordance with Article 3 (commencing with Section 25792). Revenue generated by the sale of energy services within the Demand Side Grid Support Program shall be deposited into the Demand Side Grid Support Account.(d)The commission may accept nonstate moneys, including, but not limited to, federal moneys, for purposes of this chapter.(e)The commission shall adopt emergency regulations to implement this chapter at a commission business meeting. Notwithstanding Sections 11346.1 and 11349.6 of the Government Code, a finding of emergency or necessity to address an emergency shall not be required. Notwithstanding any other law, these emergency regulations shall be valid for three years, or until replaced by nonemergency regulations, whichever is sooner.(f)(1)The executive director, or a designee, of the commission may approve any contract, grant, or loan entered into for purposes of this chapter until October 31, 2023. After October 31, 2023, any contract, grant, or loan entered into for purposes of this chapter shall be approved in a commission meeting held consistent with Chapter 3 (commencing with Section 25200) of Division 15. For any contract, grant, or loan entered into for purposes of this chapter, no later than 10 days after the commission, executive director, or their designee, approves the contract, grant, or loan, the executive director of the commission shall give written notice to the Joint Legislative Budget Committee of the action.(2)A contracted resource for which a contract, grant, or loan pursuant to paragraph (1) is entered into on or after January 1, 2024, shall be an eligible renewable energy resource, as defined in Section 399.12 of the Public Utilities Code, or a zero-carbon resource, including a firm zero-carbon resource, as defined in Section 25216.7.(g)(1)Notwithstanding any other law, a contract, grant, or loan entered into for purposes of this chapter for an activity that is needed for ensuring electrical grid reliability by October 31, 2023, shall not require competitive bidding, or the review, consent, or approval of the Department of General Services or any other state department or agency and is not required to comply with the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.(2)This subdivision does not apply to any contract, grant, or loan entered into for purposes of this chapter that is not needed for ensuring electrical grid reliability by October 31, 2023.(3)This subdivision is inoperative on November 1, 2023.(h)Notwithstanding any other law, the commission may pay an incentive up front if not doing so would inhibit participation in the programs established pursuant to this chapter.SEC. 3.Section 454.53 of the Public Utilities Code is amended to read:454.53.(a)It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b)The commission, Energy Commission, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1)Maintain and protect the safety, reliable operation, and balancing of the electric system.(2)Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3)To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4)Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c)Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d)The commission, Energy Commission, and State Air Resources Board shall do all of the following:(1)Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2)In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature, submitted in accordance with Section 9795 of the Government Code, by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A)A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B)An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C)An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D)The barriers to, and benefits of, achieving the policy described in subdivision (a).(E)Alternative scenarios, including scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe, in which the policy described in subdivision (a) can be achieved and the estimated costs, greenhouse gas emissions reductions, and other benefits of each scenario.(3)On or before December 1, 2023, and annually thereafter, in consultation with California balancing authorities, as defined in subdivision (d) of Section 399.12, and as part of, or an interim addendum to, the quadrennial joint report required by paragraph (2), as applicable, issue a joint reliability progress report that reviews system and local reliability within the context of the policy described in subdivision (a), with a particular focus on summer reliability. The joint reliability progress report shall identify challenges and gaps, if any, to achieving system and local reliability and identify the amount and cause of any delays to achieving compliance with all energy and capacity procurement requirements set by the commission.(e)Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f)This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
Amended IN Senate May 02, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 664Introduced by Senator SternFebruary 16, 2023 An act to amend Section 25793 of, and to add Section 25302.8 to, to the Public Resources Code, and to amend Section 454.53 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 664, as amended, Stern. Energy: renewable energy resources and zero-carbon resources. demand forecast: weather events.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), on a biennial basis, to adopt an integrated energy policy report containing an overview of major trends and issues facing the state. Existing law requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers all aspects of energy industries and markets that are essential for the state economy, general welfare, public health and safety, energy diversity, and protection of the environment.This bill would require the Energy Commission ensure that the demand forecasts in the integrated energy policy report account for multiday extreme and atypical weather events and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.Existing law created the Strategic Reliability Reserve Fund, a continuously appropriated fund, for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition. Existing law authorizes the Energy Commission to approve a contract, grant, or loan entered into for those purposes.This bill would require a contracted resource for which a contract, grant, or loan is entered into on or after January 1, 2024, to be an eligible renewable energy resource or a zero-carbon resource.Existing law states the state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customer by December 31, 2035, 95% by December 31, 2040, and 100% by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035. Existing law requires the Public Utilities Commission, the Energy Commission, and the State Air Resources Board, on a 4-year basis, to issue a joint report to the Legislature that includes, among other things, alternative scenarios in which that state policy can be achieved and the estimated costs and benefits of each scenario.This bill would require that the alternative scenarios include scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe and the estimated greenhouse gas emissions reductions for each scenario.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Senate May 02, 2023
Amended IN Senate May 02, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 664
Introduced by Senator SternFebruary 16, 2023
Introduced by Senator Stern
February 16, 2023
An act to amend Section 25793 of, and to add Section 25302.8 to, to the Public Resources Code, and to amend Section 454.53 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 664, as amended, Stern. Energy: renewable energy resources and zero-carbon resources. demand forecast: weather events.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), on a biennial basis, to adopt an integrated energy policy report containing an overview of major trends and issues facing the state. Existing law requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers all aspects of energy industries and markets that are essential for the state economy, general welfare, public health and safety, energy diversity, and protection of the environment.This bill would require the Energy Commission ensure that the demand forecasts in the integrated energy policy report account for multiday extreme and atypical weather events and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.Existing law created the Strategic Reliability Reserve Fund, a continuously appropriated fund, for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition. Existing law authorizes the Energy Commission to approve a contract, grant, or loan entered into for those purposes.This bill would require a contracted resource for which a contract, grant, or loan is entered into on or after January 1, 2024, to be an eligible renewable energy resource or a zero-carbon resource.Existing law states the state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customer by December 31, 2035, 95% by December 31, 2040, and 100% by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035. Existing law requires the Public Utilities Commission, the Energy Commission, and the State Air Resources Board, on a 4-year basis, to issue a joint report to the Legislature that includes, among other things, alternative scenarios in which that state policy can be achieved and the estimated costs and benefits of each scenario.This bill would require that the alternative scenarios include scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe and the estimated greenhouse gas emissions reductions for each scenario.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), on a biennial basis, to adopt an integrated energy policy report containing an overview of major trends and issues facing the state. Existing law requires the report to include an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers all aspects of energy industries and markets that are essential for the state economy, general welfare, public health and safety, energy diversity, and protection of the environment.
This bill would require the Energy Commission ensure that the demand forecasts in the integrated energy policy report account for multiday extreme and atypical weather events and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.
Existing law created the Strategic Reliability Reserve Fund, a continuously appropriated fund, for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition. Existing law authorizes the Energy Commission to approve a contract, grant, or loan entered into for those purposes.
This bill would require a contracted resource for which a contract, grant, or loan is entered into on or after January 1, 2024, to be an eligible renewable energy resource or a zero-carbon resource.
Existing law states the state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customer by December 31, 2035, 95% by December 31, 2040, and 100% by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035. Existing law requires the Public Utilities Commission, the Energy Commission, and the State Air Resources Board, on a 4-year basis, to issue a joint report to the Legislature that includes, among other things, alternative scenarios in which that state policy can be achieved and the estimated costs and benefits of each scenario.
This bill would require that the alternative scenarios include scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe and the estimated greenhouse gas emissions reductions for each scenario.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 25302.8 is added to the Public Resources Code, to read:25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.SEC. 2.Section 25793 of the Public Resources Code is amended to read:25793.(a)The Strategic Reliability Reserve Fund is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the moneys in the fund and the accounts contained in the fund are hereby continuously appropriated without regard to fiscal year to be expended by the commission for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition.(b)The Distributed Electricity Backup Assets Account is hereby created in the fund, to be administered by the commission to implement the Distributed Electricity Backup Assets Program in accordance with Article 2 (commencing with Section 25791).(c)The Demand Side Grid Support Account is hereby created in the fund, to be administered by the commission to implement the Demand Side Grid Support Program in accordance with Article 3 (commencing with Section 25792). Revenue generated by the sale of energy services within the Demand Side Grid Support Program shall be deposited into the Demand Side Grid Support Account.(d)The commission may accept nonstate moneys, including, but not limited to, federal moneys, for purposes of this chapter.(e)The commission shall adopt emergency regulations to implement this chapter at a commission business meeting. Notwithstanding Sections 11346.1 and 11349.6 of the Government Code, a finding of emergency or necessity to address an emergency shall not be required. Notwithstanding any other law, these emergency regulations shall be valid for three years, or until replaced by nonemergency regulations, whichever is sooner.(f)(1)The executive director, or a designee, of the commission may approve any contract, grant, or loan entered into for purposes of this chapter until October 31, 2023. After October 31, 2023, any contract, grant, or loan entered into for purposes of this chapter shall be approved in a commission meeting held consistent with Chapter 3 (commencing with Section 25200) of Division 15. For any contract, grant, or loan entered into for purposes of this chapter, no later than 10 days after the commission, executive director, or their designee, approves the contract, grant, or loan, the executive director of the commission shall give written notice to the Joint Legislative Budget Committee of the action.(2)A contracted resource for which a contract, grant, or loan pursuant to paragraph (1) is entered into on or after January 1, 2024, shall be an eligible renewable energy resource, as defined in Section 399.12 of the Public Utilities Code, or a zero-carbon resource, including a firm zero-carbon resource, as defined in Section 25216.7.(g)(1)Notwithstanding any other law, a contract, grant, or loan entered into for purposes of this chapter for an activity that is needed for ensuring electrical grid reliability by October 31, 2023, shall not require competitive bidding, or the review, consent, or approval of the Department of General Services or any other state department or agency and is not required to comply with the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.(2)This subdivision does not apply to any contract, grant, or loan entered into for purposes of this chapter that is not needed for ensuring electrical grid reliability by October 31, 2023.(3)This subdivision is inoperative on November 1, 2023.(h)Notwithstanding any other law, the commission may pay an incentive up front if not doing so would inhibit participation in the programs established pursuant to this chapter.SEC. 3.Section 454.53 of the Public Utilities Code is amended to read:454.53.(a)It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.(b)The commission, Energy Commission, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:(1)Maintain and protect the safety, reliable operation, and balancing of the electric system.(2)Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.(3)To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.(4)Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.(c)Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).(d)The commission, Energy Commission, and State Air Resources Board shall do all of the following:(1)Use programs authorized under existing statutes to achieve the policy described in subdivision (a).(2)In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature, submitted in accordance with Section 9795 of the Government Code, by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:(A)A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.(B)An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).(C)An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.(D)The barriers to, and benefits of, achieving the policy described in subdivision (a).(E)Alternative scenarios, including scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe, in which the policy described in subdivision (a) can be achieved and the estimated costs, greenhouse gas emissions reductions, and other benefits of each scenario.(3)On or before December 1, 2023, and annually thereafter, in consultation with California balancing authorities, as defined in subdivision (d) of Section 399.12, and as part of, or an interim addendum to, the quadrennial joint report required by paragraph (2), as applicable, issue a joint reliability progress report that reviews system and local reliability within the context of the policy described in subdivision (a), with a particular focus on summer reliability. The joint reliability progress report shall identify challenges and gaps, if any, to achieving system and local reliability and identify the amount and cause of any delays to achieving compliance with all energy and capacity procurement requirements set by the commission.(e)Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.(f)This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.
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 25302.8 is added to the Public Resources Code, to read:25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.
SECTION 1. Section 25302.8 is added to the Public Resources Code, to read:
### SECTION 1.
25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.
25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.
25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.
25302.8. The commission shall ensure that the demand forecasts in the integrated energy policy report required pursuant to Section 25302 account for multiday extreme and atypical weather events, including periods of low renewable energy generation, and include, at a minimum, one-in-10-year, one-in-20-year, and one-in-40-year peak demand forecasts. events.
(a)The Strategic Reliability Reserve Fund is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the moneys in the fund and the accounts contained in the fund are hereby continuously appropriated without regard to fiscal year to be expended by the commission for purposes of adding resources to the electrical grid to ensure electrical grid reliability and support the clean energy transition.
(b)The Distributed Electricity Backup Assets Account is hereby created in the fund, to be administered by the commission to implement the Distributed Electricity Backup Assets Program in accordance with Article 2 (commencing with Section 25791).
(c)The Demand Side Grid Support Account is hereby created in the fund, to be administered by the commission to implement the Demand Side Grid Support Program in accordance with Article 3 (commencing with Section 25792). Revenue generated by the sale of energy services within the Demand Side Grid Support Program shall be deposited into the Demand Side Grid Support Account.
(d)The commission may accept nonstate moneys, including, but not limited to, federal moneys, for purposes of this chapter.
(e)The commission shall adopt emergency regulations to implement this chapter at a commission business meeting. Notwithstanding Sections 11346.1 and 11349.6 of the Government Code, a finding of emergency or necessity to address an emergency shall not be required. Notwithstanding any other law, these emergency regulations shall be valid for three years, or until replaced by nonemergency regulations, whichever is sooner.
(f)(1)The executive director, or a designee, of the commission may approve any contract, grant, or loan entered into for purposes of this chapter until October 31, 2023. After October 31, 2023, any contract, grant, or loan entered into for purposes of this chapter shall be approved in a commission meeting held consistent with Chapter 3 (commencing with Section 25200) of Division 15. For any contract, grant, or loan entered into for purposes of this chapter, no later than 10 days after the commission, executive director, or their designee, approves the contract, grant, or loan, the executive director of the commission shall give written notice to the Joint Legislative Budget Committee of the action.
(2)A contracted resource for which a contract, grant, or loan pursuant to paragraph (1) is entered into on or after January 1, 2024, shall be an eligible renewable energy resource, as defined in Section 399.12 of the Public Utilities Code, or a zero-carbon resource, including a firm zero-carbon resource, as defined in Section 25216.7.
(g)(1)Notwithstanding any other law, a contract, grant, or loan entered into for purposes of this chapter for an activity that is needed for ensuring electrical grid reliability by October 31, 2023, shall not require competitive bidding, or the review, consent, or approval of the Department of General Services or any other state department or agency and is not required to comply with the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.
(2)This subdivision does not apply to any contract, grant, or loan entered into for purposes of this chapter that is not needed for ensuring electrical grid reliability by October 31, 2023.
(3)This subdivision is inoperative on November 1, 2023.
(h)Notwithstanding any other law, the commission may pay an incentive up front if not doing so would inhibit participation in the programs established pursuant to this chapter.
(a)It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.
(b)The commission, Energy Commission, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:
(1)Maintain and protect the safety, reliable operation, and balancing of the electric system.
(2)Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.
(3)To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.
(4)Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.
(c)Nothing in this section shall affect a retail sellers obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).
(d)The commission, Energy Commission, and State Air Resources Board shall do all of the following:
(1)Use programs authorized under existing statutes to achieve the policy described in subdivision (a).
(2)In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature, submitted in accordance with Section 9795 of the Government Code, by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:
(A)A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.
(B)An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).
(C)An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.
(D)The barriers to, and benefits of, achieving the policy described in subdivision (a).
(E)Alternative scenarios, including scenarios achieving zero or near zero greenhouse gas emissions in the electricity sector in the 203545 timeframe, in which the policy described in subdivision (a) can be achieved and the estimated costs, greenhouse gas emissions reductions, and other benefits of each scenario.
(3)On or before December 1, 2023, and annually thereafter, in consultation with California balancing authorities, as defined in subdivision (d) of Section 399.12, and as part of, or an interim addendum to, the quadrennial joint report required by paragraph (2), as applicable, issue a joint reliability progress report that reviews system and local reliability within the context of the policy described in subdivision (a), with a particular focus on summer reliability. The joint reliability progress report shall identify challenges and gaps, if any, to achieving system and local reliability and identify the amount and cause of any delays to achieving compliance with all energy and capacity procurement requirements set by the commission.
(e)Nothing in this section authorizes the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.
(f)This section does not limit any entity, including local governments, from accelerating their achievement of the states electric sector decarbonization targets.