| Old | New | Differences | |
|---|---|---|---|
| 1 | - | ||
| 1 | + | Amended IN Assembly March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 44Introduced by Assembly Member SchultzDecember 02, 2024 An act to add Section 25403.6 to the Public Resources Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 44, as amended, Schultz. Energy: electrical demand forecasts.Existing law requires the State Energy Resources Conservation and Development Commission, 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 commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts. Existing law requires the Energy Commission to adopt an integrated energy policy report every 2 years.This bill would state the intent of the Legislature to enact subsequent legislation that would require the commission to develop a set of technical guidance and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability, as provided. require the Energy Commission, on or before 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 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. The bill would require the commission to evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and would authorize the Energy Commission to include its findings and recommendations in its integrated energy policy report.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES 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. flexibility.(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 electrical system 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. grid, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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. market.(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 to enact subsequent legislation that would require the State Energy Resources Conservation and Development Commission to, through its load management rulemaking proceeding and experience administering distributed resource incentives, flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of technical guidance upfront technical requirements and load 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 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 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 protocols shall be met by a resource aggregator through the deployment of load 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 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 protocols.(b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302.(c) For purposes of this section, the following definitions shall 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. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 44Introduced by Assembly Member SchultzDecember 02, 2024 An act to add Section 25403.6 to the Public Resources Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 44, as amended, Schultz. Energy: electrical demand forecasts.Existing law requires the State Energy Resources Conservation and Development Commission, 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 commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts. Existing law requires the Energy Commission to adopt an integrated energy policy report every 2 years.This bill would state the intent of the Legislature to enact subsequent legislation that would require the commission to develop a set of technical guidance and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability, as provided. require the Energy Commission, on or before 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 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. The bill would require the commission to evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and would authorize the Energy Commission to include its findings and recommendations in its integrated energy policy report.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 25, 2025 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 07, 2025 | |
| 8 | 7 | Amended IN Assembly March 25, 2025 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 44 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member SchultzDecember 02, 2024 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Assembly Member Schultz | |
| 19 | 18 | December 02, 2024 | |
| 20 | 19 | ||
| 21 | 20 | An act to add Section 25403.6 to the Public Resources Code, relating to electricity. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | 26 | AB 44, as amended, Schultz. Energy: electrical demand forecasts. | |
| 28 | 27 | ||
| 29 | - | Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) | |
| 28 | + | Existing law requires the State Energy Resources Conservation and Development Commission, 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 commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts. Existing law requires the Energy Commission to adopt an integrated energy policy report every 2 years.This bill would state the intent of the Legislature to enact subsequent legislation that would require the commission to develop a set of technical guidance and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability, as provided. require the Energy Commission, on or before 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 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. The bill would require the commission to evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and would authorize the Energy Commission to include its findings and recommendations in its integrated energy policy report. | |
| 30 | 29 | ||
| 31 | - | Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) | |
| 30 | + | Existing law requires the State Energy Resources Conservation and Development Commission, 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 commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts. Existing law requires the Energy Commission to adopt an integrated energy policy report every 2 years. | |
| 32 | 31 | ||
| 33 | - | This bill would require the Energy | |
| 32 | + | This bill would state the intent of the Legislature to enact subsequent legislation that would require the commission to develop a set of technical guidance and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability, as provided. require the Energy Commission, on or before 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 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. The bill would require the commission to evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and would authorize the Energy Commission to include its findings and recommendations in its integrated energy policy report. | |
| 34 | 33 | ||
| 35 | 34 | ## Digest Key | |
| 36 | 35 | ||
| 37 | 36 | ## Bill Text | |
| 38 | 37 | ||
| 39 | - | 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.(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 electrical system 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.(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, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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.(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 to require the State Energy Resources Conservation and Development Commission to, through its load flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of upfront technical requirements and load modification protocols to enable the state to | |
| 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. flexibility.(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 electrical system 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. grid, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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. market.(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 to enact subsequent legislation that would require the State Energy Resources Conservation and Development Commission to, through its load management rulemaking proceeding and experience administering distributed resource incentives, flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of technical guidance upfront technical requirements and load 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 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 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 protocols shall be met by a resource aggregator through the deployment of load 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 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 protocols.(b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302.(c) For purposes of this section, the following definitions shall 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. | |
| 40 | 39 | ||
| 41 | 40 | The people of the State of California do enact as follows: | |
| 42 | 41 | ||
| 43 | 42 | ## The people of the State of California do enact as follows: | |
| 44 | 43 | ||
| 45 | - | 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.(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 electrical system 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.(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, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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.(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 to require the State Energy Resources Conservation and Development Commission to, through its load flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of upfront technical requirements and load modification protocols to enable the state to | |
| 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. flexibility.(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 electrical system 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. grid, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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. market.(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 to enact subsequent legislation that would require the State Energy Resources Conservation and Development Commission to, through its load management rulemaking proceeding and experience administering distributed resource incentives, flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of technical guidance upfront technical requirements and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability. | |
| 46 | 45 | ||
| 47 | - | 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.(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 electrical system 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.(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, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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.(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 to require the State Energy Resources Conservation and Development Commission to, through its load flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of upfront technical requirements and load modification protocols to enable the state to | |
| 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. flexibility.(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 electrical system 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. grid, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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. market.(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 to enact subsequent legislation that would require the State Energy Resources Conservation and Development Commission to, through its load management rulemaking proceeding and experience administering distributed resource incentives, flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of technical guidance upfront technical requirements and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability. | |
| 48 | 47 | ||
| 49 | 48 | SECTION 1. (a) The Legislature finds and declares all of the following: | |
| 50 | 49 | ||
| 51 | 50 | ### SECTION 1. | |
| 52 | 51 | ||
| 53 | - | (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. | |
| 52 | + | (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. flexibility. | |
| 54 | 53 | ||
| 55 | 54 | (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. | |
| 56 | 55 | ||
| 57 | - | (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 electrical system 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. | |
| 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 electrical system 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. | |
| 58 | 57 | ||
| 59 | - | (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, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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. | |
| 58 | + | (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. grid, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. 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. market. | |
| 60 | 59 | ||
| 61 | 60 | (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. | |
| 62 | 61 | ||
| 63 | - | (b) It is the intent of the Legislature to require the State Energy Resources Conservation and Development Commission to, through its load flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of upfront technical requirements and load modification protocols to enable the state to | |
| 62 | + | (b) It is the intent of the Legislature to enact subsequent legislation that would require the State Energy Resources Conservation and Development Commission to, through its load management rulemaking proceeding and experience administering distributed resource incentives, flexibility initiatives, proceedings, and experience developing distributed resource plans and programs, develop a set of technical guidance upfront technical requirements and load modification protocols to enable the state to reduce or modify its electrical demand forecast to improve grid reliability. | |
| 64 | 63 | ||
| 65 | - | SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, | |
| 64 | + | SEC. 2. Section 25403.6 is added to the Public Resources Code, to read:25403.6. (a) (1) On or before 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 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 protocols shall be met by a resource aggregator through the deployment of load 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 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 protocols.(b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302.(c) For purposes of this section, the following definitions shall 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. | |
| 66 | 65 | ||
| 67 | 66 | SEC. 2. Section 25403.6 is added to the Public Resources Code, to read: | |
| 68 | 67 | ||
| 69 | 68 | ### SEC. 2. | |
| 70 | 69 | ||
| 71 | - | 25403.6. (a) (1) On or before December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, | |
| 70 | + | 25403.6. (a) (1) On or before 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 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 protocols shall be met by a resource aggregator through the deployment of load 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 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 protocols.(b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302.(c) For purposes of this section, the following definitions shall 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 | 71 | ||
| 73 | - | 25403.6. (a) (1) On or before December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, | |
| 72 | + | 25403.6. (a) (1) On or before 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 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 protocols shall be met by a resource aggregator through the deployment of load 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 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 protocols.(b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302.(c) For purposes of this section, the following definitions shall 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 | 73 | ||
| 75 | - | 25403.6. (a) (1) On or before December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, | |
| 74 | + | 25403.6. (a) (1) On or before 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 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 protocols shall be met by a resource aggregator through the deployment of load 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 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 protocols.(b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302.(c) For purposes of this section, the following definitions shall 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. | |
| 76 | 75 | ||
| 77 | 76 | ||
| 78 | 77 | ||
| 79 | - | 25403.6. (a) (1) On or before December 1, 2026, the commission, in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, | |
| 78 | + | 25403.6. (a) (1) On or before 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 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 protocols shall be met by a resource aggregator through the deployment of load 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. | |
| 80 | 79 | ||
| 81 | - | (2) In developing the requirements and protocols pursuant to paragraph (1), | |
| 80 | + | (2) In developing the requirements and 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 protocols. | |
| 82 | 81 | ||
| 83 | 82 | (b) The commission shall evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and may include its findings and recommendations in an integrated energy policy report prepared pursuant to Section 25302. | |
| 84 | 83 | ||
| 85 | - | (c) For purposes of this section, the following definitions shall apply: | |
| 84 | + | (c) For purposes of this section, the following definitions shall apply: | |
| 86 | 85 | ||
| 87 | 86 | (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. | |
| 88 | - | ||
| 89 | - | ||
| 90 | 87 | ||
| 91 | 88 | (2) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code. |