CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 740Introduced by Assembly Member HarabedianFebruary 18, 2025 An act to add Section 25302.8 to the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 740, as introduced, Harabedian. Integrated energy policy report: virtual power plants.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state. Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter.This bill would require the Energy Commission, as part of the integrated energy policy report, to include modeling of the effects of virtual power plants on electricity costs and rate reduction and to submit to the Legislature a virtual power plant implementation plan that includes goals and milestones. The bill would require each electrical corporation to annually report to the commission its contribution towards meeting the load-shift goal.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. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 740Introduced by Assembly Member HarabedianFebruary 18, 2025 An act to add Section 25302.8 to the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 740, as introduced, Harabedian. Integrated energy policy report: virtual power plants.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state. Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter.This bill would require the Energy Commission, as part of the integrated energy policy report, to include modeling of the effects of virtual power plants on electricity costs and rate reduction and to submit to the Legislature a virtual power plant implementation plan that includes goals and milestones. The bill would require each electrical corporation to annually report to the commission its contribution towards meeting the load-shift goal.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 740
Introduced by Assembly Member HarabedianFebruary 18, 2025
Introduced by Assembly Member Harabedian
February 18, 2025
An act to add Section 25302.8 to the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 740, as introduced, Harabedian. Integrated energy policy report: virtual power plants.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state. Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter.This bill would require the Energy Commission, as part of the integrated energy policy report, to include modeling of the effects of virtual power plants on electricity costs and rate reduction and to submit to the Legislature a virtual power plant implementation plan that includes goals and milestones. The bill would require each electrical corporation to annually report to the commission its contribution towards meeting the load-shift goal.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state. Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter.
This bill would require the Energy Commission, as part of the integrated energy policy report, to include modeling of the effects of virtual power plants on electricity costs and rate reduction and to submit to the Legislature a virtual power plant implementation plan that includes goals and milestones. The bill would require each electrical corporation to annually report to the commission its contribution towards meeting the load-shift goal.
## 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. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.
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. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.
SECTION 1. Section 25302.8 is added to the Public Resources Code, to read:
### SECTION 1.
25302.8. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.
25302.8. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.
25302.8. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.
25302.8. (a) As part of the report prepared pursuant to Section 25302, the commission shall do both of the following:
(1) Include modeling of the effects of virtual power plants on electricity costs and rate reduction.
(2) (A) Submit to the Legislature a virtual power plant implementation plan that includes goals and milestones.
(B) The report submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
(b) Each electrical corporation shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.