| 1 | | - | Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 541Introduced by Senator BeckerFebruary 20, 2025 An act to amend Section 25545 25302.7 of the Public Resources Code, and to amend Section 454.52 of, and to add Chapter 11 (commencing with Section 8500) to Division 4.1 of, the Public Utilities Code, relating to energy. electricity.LEGISLATIVE COUNSEL'S DIGESTSB 541, as amended, Becker. Alternative certification. Electricity: load shifting: dynamic pricing.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the specified entities, to adopt a biennial integrated energy policy report containing certain information in a specified format. Existing law requires the Energy Commission, in consultation with the Public Utilities Commission (PUC) 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 each integrated energy policy report, to allocate the incremental load shifting needed to reach the above-described load-shifting goal, including biennial adjustments to the goal, to each retail supplier, as defined, based on the relative share of statewide load of each retail supplier, as specified. The bill would require the Energy Commission to establish rules for evaluating the effectiveness of the various load-shifting strategies for the purpose of determining how much credit a retail supplier should get for each type of load flexibility effort it undertakes, as specified.Existing law requires the PUC to adopt a process for each load-serving entity, as defined, to file an integrated resource plan and a schedule for periodic updates to the plan and to ensure that load-serving entities, among other things, enhance distribution systems and demand-side energy management.This bill would instead require that load-serving entities meet the incremental load-shifting goal established pursuant to the above-described provisions, to the extent that the goal is cost effective, as specified.Existing law vests the PUC with regulatory jurisdiction over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing board.This bill would require all retail suppliers, as defined, to provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility. The bill would require the commission, on or before January 1, 2028, to require all load-serving entities to offer optional dynamic pricing tariffs, as specified, and the governing boards of each local publicly owned electric utility to consider offering dynamic pricing tariffs, as specified. The bill would require the commission, as part of a new or existing proceeding, to consider (1) whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load, and (2) whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because certain provisions of this bill would be part of the act and a violation of a PUC action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.Additionally, by imposing new duties on local publicly owned electric utilities, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for specified reasons.Existing law, until June 30, 2029, authorizes a person proposing an eligible facility, as defined, to submit an application for certification of the site and related facility with the State Energy Resources Conservation and Development Commission. Existing law specifies that the issuance by the commission of the certificate is in lieu of any permit, certificate, or similar document required by any state, local, or regional agency, or federal agency to the extent permitted by federal law, except as provided. Existing law establishes the procedures by which the commission is to review the application.This bill would make nonsubstantive changes to the definitions governing those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 25302.7 of the Public Resources Code is amended to read:25302.7. (a) By June 1, 2023, the commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall adopt a goal for load shifting to reduce net peak electrical demand and shall adjust this target in each biennial integrated energy policy report prepared pursuant to Section 25302 thereafter. In developing this target, the commission shall consider the findings of the 2020 Lawrence Berkeley National Laboratory report on the Shift Resource through 2030 and other relevant research. The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall recommend policies to increase demand response and load shifting that do not increase greenhouse gas emissions or increase electric rates.(b) As part of each integrated energy policy report adopted pursuant to Section 25302, the commission shall allocate the incremental load shifting needed to reach the load-shifting goal adopted pursuant to subdivision (a), including biennial adjustments to the goal, to each retail supplier based on the relative share of statewide load of each retail supplier. In allocating the incremental load-shifting goal, the commission shall do all the following:(1) Deduct the load shifting already achieved as identified in the initial load-shifting goal adopted by the commission in the commissions Senate Bill 846 Load-Shift Goal Report, CEC-200-2023-008 (May 26, 2023).(2) Consider the shortened time remaining to achieve the incremental load shifting needed to reach the 2030 goal.(3) Exclude from the incremental load-shifting goal the load shifting expected to be met by emergency programs, including the Demand Side Grid Support Program (Article 3 (commencing with Section 25792) of Chapter 8.9) and the Emergency Load Reduction Program established by the Public Utilities Commission in Decision 21-03-056 (March 25, 2021), Decision Directing Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company to Take Actions to Prepare for Potential Extreme Weather in the Summers of 2021 and 2022.(4) Consider nonemergency load shifting already achieved by a retail supplier.(c) (1) The commission shall establish rules for evaluating the effectiveness of the various load-shifting strategies for the purpose of determining how much credit a retail supplier should get for each type of load flexibility effort it undertakes. These rules shall be periodically updated as the commission learns more about the effectiveness of the various load-shifting strategies.(2) The commission shall periodically identify and evaluate barriers to effectively implementing load-shifting strategies and shall recommend to the Legislature methods to eliminate or reduce those barriers.(d) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1 of the Public Utilities Code.(2) Electric service provider has the same meaning as defined in Section 218.3 of the Public Utilities Code.(3) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(4) (A) Load shifting means a reduction in net peak demand during the top 100 net system load hours in a year, with net system load measured as gross bulk system load minus in-front-of-the-meter solar and wind generation.(B) Load shifting may include either of the following:(i) Load-modifying resources, including the use of demand flexibility resources or programs to alter an entitys load forecast and the use of time-varying rates to induce load flexibility.(ii) Supply-side load flexibility resources, including resources that provide resource adequacy and other nonemergency demand response resources.(C) Load shifting may include the use of backup generators, or any other greenhouse-gas-emitting resources, only within emergency programs.(5) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(6) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include an electrical corporation with 60,000 or fewer customer accounts in the state or a retail supplier with an annual electrical demand of less than 1,000 gigawatthours.SEC. 2. Section 454.52 of the Public Utilities Code is amended to read:454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.(C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.(D) Minimize impacts on ratepayers bills.(E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.(ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.(iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.(H)Enhance distribution systems and demand-side energy management.(H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy.(ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan.(iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity.(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.(2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).(B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.(4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.(B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.(C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.(D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.(ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.(E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.(2) Each electrical corporations plan shall follow Section 454.5.(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).(B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(C) The resource adequacy requirements established pursuant to Section 380.(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.(f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.(2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.(g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4.(h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:(A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.(B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.(C) The resource has a construction and development lead time of at least five years.(D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.(E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.(2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.(i) For purposes of this section, the following definitions apply:(1) Load-serving entity has the same meaning as defined in Section 380.(2) Long term means a time period that includes five or more years in the future.(3) Midterm means a time period between two and five years in the future.(4) Short term means a time period between the present and two years in the future.SEC. 3. Chapter 11 (commencing with Section 8500) is added to Division 4.1 of the Public Utilities Code, to read: CHAPTER 11. Rates8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility.(b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website.(d) As part of a new or existing proceeding, the commission shall consider both of the following:(1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load.(2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.(e) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1.(2) Electric service provider has the same meaning as defined in Section 218.3.(3) Electrical corporation has the same meaning as defined in Section 218.(4) Energy Commission means the State Energy Resources Conservation and Development Commission. (5) Load-serving entity has the same meaning as defined in Section 380.(6) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SECTION 1.Section 25545 of the Public Resources Code is amended to read:25545.For purposes of this chapter, the following definitions apply:(a)California Native American tribe has the same meaning as set forth in Section 21073.(b)Facility means any of the following:(1)A solar photovoltaic or terrestrial wind electrical generating powerplant with a generating capacity of 50 megawatts or more and any facilities appurtenant to that powerplant.(2)An energy storage system as defined in Section 2835 of the Public Utilities Code that is capable of storing 200 megawatthours or more of energy.(3)A stationary electrical generating powerplant using any source of thermal energy, with a generating capacity of 50 megawatts or more, excluding any powerplant that burns, uses, or relies on fossil or nuclear fuels.(4)A discretionary project as described in Section 21080 for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) will be made over a period of five years and the discretionary project is for (A) the manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or component manufacturing, or (B) the manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy or energy storage technologies.(5)An electrical transmission line carrying electricity from a facility described in paragraph (1), (2), or (3) that is located in the state to a point of junction with any interconnected electrical transmission system.(6)A hydrogen production facility and associated onsite storage and processing facilities that do not derive hydrogen from a fossil fuel feedstock and that receive funding from any of the following:(A)The Hydrogen Program established pursuant to Section 25664.1.(B)Section 91530.(C)The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) authorized by Article 15 (commencing with Section 12100.160) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, as awarded by the United States Department of Energy Office of Clean Energy Demonstrations.(c)Site means any location on which an eligible facility is constructed or is proposed to be constructed. |
|---|
| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 541Introduced by Senator BeckerFebruary 20, 2025 An act to amend Section 25545 of the Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTSB 541, as introduced, Becker. Alternative certification.Existing law, until June 30, 2029, authorizes a person proposing an eligible facility, as defined, to submit an application for certification of the site and related facility with the State Energy Resources Conservation and Development Commission. Existing law specifies that the issuance by the commission of the certificate is in lieu of any permit, certificate, or similar document required by any state, local, or regional agency, or federal agency to the extent permitted by federal law, except as provided. Existing law establishes the procedures by which the commission is to review the application.This bill would make nonsubstantive changes to the definitions governing those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 25545 of the Public Resources Code is amended to read:25545. For purposes of this chapter, the following definitions apply:(a) California Native American tribe has the same meaning as set forth in Section 21073.(b) Facility means any of the following:(1) A solar photovoltaic or terrestrial wind electrical generating powerplant with a generating capacity of 50 megawatts or more and any facilities appurtenant thereto. to that powerplant.(2) An energy storage system as defined in Section 2835 of the Public Utilities Code that is capable of storing 200 megawatthours or more of energy.(3) A stationary electrical generating powerplant using any source of thermal energy, with a generating capacity of 50 megawatts or more, excluding any powerplant that burns, uses, or relies on fossil or nuclear fuels.(4) A discretionary project as described in Section 21080 for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) will be made over a period of five years and the discretionary project is for (A) the manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or component manufacturing, or (B) the manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy or energy storage technologies.(5) An electrical transmission line carrying electricity from a facility described in paragraph (1), (2), or (3) that is located in the state to a point of junction with any interconnected electrical transmission system.(6) A hydrogen production facility and associated onsite storage and processing facilities that do not derive hydrogen from a fossil fuel feedstock and that receive funding from any of the following:(A) The Hydrogen Program established pursuant to Section 25664.1.(B) Section 91530, as added by the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Section 2 of Chapter 83 of the Statutes of 2024 (Senate Bill No. 867)), if that act is approved by the voters at the November 5, 2024, statewide general election. 91530.(C) The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) authorized by Article 15 (commencing with Section 12100.160) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, as awarded by the United States Department of Energy Office of Clean Energy Demonstrations.(c) Site means any location on which an eligible facility is constructed or is proposed to be constructed. |
|---|
| 64 | | - | The people of the State of California do enact as follows:SECTION 1. Section 25302.7 of the Public Resources Code is amended to read:25302.7. (a) By June 1, 2023, the commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall adopt a goal for load shifting to reduce net peak electrical demand and shall adjust this target in each biennial integrated energy policy report prepared pursuant to Section 25302 thereafter. In developing this target, the commission shall consider the findings of the 2020 Lawrence Berkeley National Laboratory report on the Shift Resource through 2030 and other relevant research. The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall recommend policies to increase demand response and load shifting that do not increase greenhouse gas emissions or increase electric rates.(b) As part of each integrated energy policy report adopted pursuant to Section 25302, the commission shall allocate the incremental load shifting needed to reach the load-shifting goal adopted pursuant to subdivision (a), including biennial adjustments to the goal, to each retail supplier based on the relative share of statewide load of each retail supplier. In allocating the incremental load-shifting goal, the commission shall do all the following:(1) Deduct the load shifting already achieved as identified in the initial load-shifting goal adopted by the commission in the commissions Senate Bill 846 Load-Shift Goal Report, CEC-200-2023-008 (May 26, 2023).(2) Consider the shortened time remaining to achieve the incremental load shifting needed to reach the 2030 goal.(3) Exclude from the incremental load-shifting goal the load shifting expected to be met by emergency programs, including the Demand Side Grid Support Program (Article 3 (commencing with Section 25792) of Chapter 8.9) and the Emergency Load Reduction Program established by the Public Utilities Commission in Decision 21-03-056 (March 25, 2021), Decision Directing Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company to Take Actions to Prepare for Potential Extreme Weather in the Summers of 2021 and 2022.(4) Consider nonemergency load shifting already achieved by a retail supplier.(c) (1) The commission shall establish rules for evaluating the effectiveness of the various load-shifting strategies for the purpose of determining how much credit a retail supplier should get for each type of load flexibility effort it undertakes. These rules shall be periodically updated as the commission learns more about the effectiveness of the various load-shifting strategies.(2) The commission shall periodically identify and evaluate barriers to effectively implementing load-shifting strategies and shall recommend to the Legislature methods to eliminate or reduce those barriers.(d) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1 of the Public Utilities Code.(2) Electric service provider has the same meaning as defined in Section 218.3 of the Public Utilities Code.(3) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(4) (A) Load shifting means a reduction in net peak demand during the top 100 net system load hours in a year, with net system load measured as gross bulk system load minus in-front-of-the-meter solar and wind generation.(B) Load shifting may include either of the following:(i) Load-modifying resources, including the use of demand flexibility resources or programs to alter an entitys load forecast and the use of time-varying rates to induce load flexibility.(ii) Supply-side load flexibility resources, including resources that provide resource adequacy and other nonemergency demand response resources.(C) Load shifting may include the use of backup generators, or any other greenhouse-gas-emitting resources, only within emergency programs.(5) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(6) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include an electrical corporation with 60,000 or fewer customer accounts in the state or a retail supplier with an annual electrical demand of less than 1,000 gigawatthours.SEC. 2. Section 454.52 of the Public Utilities Code is amended to read:454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.(C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.(D) Minimize impacts on ratepayers bills.(E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.(ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.(iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.(H)Enhance distribution systems and demand-side energy management.(H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy.(ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan.(iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity.(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.(2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).(B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.(4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.(B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.(C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.(D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.(ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.(E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.(2) Each electrical corporations plan shall follow Section 454.5.(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).(B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(C) The resource adequacy requirements established pursuant to Section 380.(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.(f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.(2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.(g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4.(h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:(A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.(B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.(C) The resource has a construction and development lead time of at least five years.(D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.(E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.(2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.(i) For purposes of this section, the following definitions apply:(1) Load-serving entity has the same meaning as defined in Section 380.(2) Long term means a time period that includes five or more years in the future.(3) Midterm means a time period between two and five years in the future.(4) Short term means a time period between the present and two years in the future.SEC. 3. Chapter 11 (commencing with Section 8500) is added to Division 4.1 of the Public Utilities Code, to read: CHAPTER 11. Rates8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility.(b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website.(d) As part of a new or existing proceeding, the commission shall consider both of the following:(1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load.(2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.(e) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1.(2) Electric service provider has the same meaning as defined in Section 218.3.(3) Electrical corporation has the same meaning as defined in Section 218.(4) Energy Commission means the State Energy Resources Conservation and Development Commission. (5) Load-serving entity has the same meaning as defined in Section 380.(6) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SECTION 1.Section 25545 of the Public Resources Code is amended to read:25545.For purposes of this chapter, the following definitions apply:(a)California Native American tribe has the same meaning as set forth in Section 21073.(b)Facility means any of the following:(1)A solar photovoltaic or terrestrial wind electrical generating powerplant with a generating capacity of 50 megawatts or more and any facilities appurtenant to that powerplant.(2)An energy storage system as defined in Section 2835 of the Public Utilities Code that is capable of storing 200 megawatthours or more of energy.(3)A stationary electrical generating powerplant using any source of thermal energy, with a generating capacity of 50 megawatts or more, excluding any powerplant that burns, uses, or relies on fossil or nuclear fuels.(4)A discretionary project as described in Section 21080 for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) will be made over a period of five years and the discretionary project is for (A) the manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or component manufacturing, or (B) the manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy or energy storage technologies.(5)An electrical transmission line carrying electricity from a facility described in paragraph (1), (2), or (3) that is located in the state to a point of junction with any interconnected electrical transmission system.(6)A hydrogen production facility and associated onsite storage and processing facilities that do not derive hydrogen from a fossil fuel feedstock and that receive funding from any of the following:(A)The Hydrogen Program established pursuant to Section 25664.1.(B)Section 91530.(C)The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) authorized by Article 15 (commencing with Section 12100.160) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, as awarded by the United States Department of Energy Office of Clean Energy Demonstrations.(c)Site means any location on which an eligible facility is constructed or is proposed to be constructed. |
|---|
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 25545 of the Public Resources Code is amended to read:25545. For purposes of this chapter, the following definitions apply:(a) California Native American tribe has the same meaning as set forth in Section 21073.(b) Facility means any of the following:(1) A solar photovoltaic or terrestrial wind electrical generating powerplant with a generating capacity of 50 megawatts or more and any facilities appurtenant thereto. to that powerplant.(2) An energy storage system as defined in Section 2835 of the Public Utilities Code that is capable of storing 200 megawatthours or more of energy.(3) A stationary electrical generating powerplant using any source of thermal energy, with a generating capacity of 50 megawatts or more, excluding any powerplant that burns, uses, or relies on fossil or nuclear fuels.(4) A discretionary project as described in Section 21080 for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) will be made over a period of five years and the discretionary project is for (A) the manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or component manufacturing, or (B) the manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy or energy storage technologies.(5) An electrical transmission line carrying electricity from a facility described in paragraph (1), (2), or (3) that is located in the state to a point of junction with any interconnected electrical transmission system.(6) A hydrogen production facility and associated onsite storage and processing facilities that do not derive hydrogen from a fossil fuel feedstock and that receive funding from any of the following:(A) The Hydrogen Program established pursuant to Section 25664.1.(B) Section 91530, as added by the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Section 2 of Chapter 83 of the Statutes of 2024 (Senate Bill No. 867)), if that act is approved by the voters at the November 5, 2024, statewide general election. 91530.(C) The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) authorized by Article 15 (commencing with Section 12100.160) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, as awarded by the United States Department of Energy Office of Clean Energy Demonstrations.(c) Site means any location on which an eligible facility is constructed or is proposed to be constructed. |
|---|
| 84 | | - | 25302.7. (a) By June 1, 2023, the commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall adopt a goal for load shifting to reduce net peak electrical demand and shall adjust this target in each biennial integrated energy policy report prepared pursuant to Section 25302 thereafter. In developing this target, the commission shall consider the findings of the 2020 Lawrence Berkeley National Laboratory report on the Shift Resource through 2030 and other relevant research. The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall recommend policies to increase demand response and load shifting that do not increase greenhouse gas emissions or increase electric rates. |
|---|
| 85 | | - | |
|---|
| 86 | | - | (b) As part of each integrated energy policy report adopted pursuant to Section 25302, the commission shall allocate the incremental load shifting needed to reach the load-shifting goal adopted pursuant to subdivision (a), including biennial adjustments to the goal, to each retail supplier based on the relative share of statewide load of each retail supplier. In allocating the incremental load-shifting goal, the commission shall do all the following: |
|---|
| 87 | | - | |
|---|
| 88 | | - | (1) Deduct the load shifting already achieved as identified in the initial load-shifting goal adopted by the commission in the commissions Senate Bill 846 Load-Shift Goal Report, CEC-200-2023-008 (May 26, 2023). |
|---|
| 89 | | - | |
|---|
| 90 | | - | (2) Consider the shortened time remaining to achieve the incremental load shifting needed to reach the 2030 goal. |
|---|
| 91 | | - | |
|---|
| 92 | | - | (3) Exclude from the incremental load-shifting goal the load shifting expected to be met by emergency programs, including the Demand Side Grid Support Program (Article 3 (commencing with Section 25792) of Chapter 8.9) and the Emergency Load Reduction Program established by the Public Utilities Commission in Decision 21-03-056 (March 25, 2021), Decision Directing Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company to Take Actions to Prepare for Potential Extreme Weather in the Summers of 2021 and 2022. |
|---|
| 93 | | - | |
|---|
| 94 | | - | (4) Consider nonemergency load shifting already achieved by a retail supplier. |
|---|
| 95 | | - | |
|---|
| 96 | | - | (c) (1) The commission shall establish rules for evaluating the effectiveness of the various load-shifting strategies for the purpose of determining how much credit a retail supplier should get for each type of load flexibility effort it undertakes. These rules shall be periodically updated as the commission learns more about the effectiveness of the various load-shifting strategies. |
|---|
| 97 | | - | |
|---|
| 98 | | - | (2) The commission shall periodically identify and evaluate barriers to effectively implementing load-shifting strategies and shall recommend to the Legislature methods to eliminate or reduce those barriers. |
|---|
| 99 | | - | |
|---|
| 100 | | - | (d) For purposes of this section, all of the following definitions apply: |
|---|
| 101 | | - | |
|---|
| 102 | | - | (1) Community choice aggregator has the same meaning as defined in Section 331.1 of the Public Utilities Code. |
|---|
| 103 | | - | |
|---|
| 104 | | - | (2) Electric service provider has the same meaning as defined in Section 218.3 of the Public Utilities Code. |
|---|
| 105 | | - | |
|---|
| 106 | | - | (3) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code. |
|---|
| 107 | | - | |
|---|
| 108 | | - | (4) (A) Load shifting means a reduction in net peak demand during the top 100 net system load hours in a year, with net system load measured as gross bulk system load minus in-front-of-the-meter solar and wind generation. |
|---|
| 109 | | - | |
|---|
| 110 | | - | (B) Load shifting may include either of the following: |
|---|
| 111 | | - | |
|---|
| 112 | | - | (i) Load-modifying resources, including the use of demand flexibility resources or programs to alter an entitys load forecast and the use of time-varying rates to induce load flexibility. |
|---|
| 113 | | - | |
|---|
| 114 | | - | (ii) Supply-side load flexibility resources, including resources that provide resource adequacy and other nonemergency demand response resources. |
|---|
| 115 | | - | |
|---|
| 116 | | - | (C) Load shifting may include the use of backup generators, or any other greenhouse-gas-emitting resources, only within emergency programs. |
|---|
| 117 | | - | |
|---|
| 118 | | - | (5) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code. |
|---|
| 119 | | - | |
|---|
| 120 | | - | (6) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include an electrical corporation with 60,000 or fewer customer accounts in the state or a retail supplier with an annual electrical demand of less than 1,000 gigawatthours. |
|---|
| 121 | | - | |
|---|
| 122 | | - | SEC. 2. Section 454.52 of the Public Utilities Code is amended to read:454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.(C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.(D) Minimize impacts on ratepayers bills.(E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.(ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.(iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.(H)Enhance distribution systems and demand-side energy management.(H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy.(ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan.(iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity.(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.(2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).(B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.(4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.(B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.(C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.(D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.(ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.(E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.(2) Each electrical corporations plan shall follow Section 454.5.(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).(B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(C) The resource adequacy requirements established pursuant to Section 380.(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.(f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.(2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.(g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4.(h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:(A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.(B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.(C) The resource has a construction and development lead time of at least five years.(D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.(E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.(2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.(i) For purposes of this section, the following definitions apply:(1) Load-serving entity has the same meaning as defined in Section 380.(2) Long term means a time period that includes five or more years in the future.(3) Midterm means a time period between two and five years in the future.(4) Short term means a time period between the present and two years in the future. |
|---|
| 123 | | - | |
|---|
| 124 | | - | SEC. 2. Section 454.52 of the Public Utilities Code is amended to read: |
|---|
| 125 | | - | |
|---|
| 126 | | - | ### SEC. 2. |
|---|
| 127 | | - | |
|---|
| 128 | | - | 454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.(C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.(D) Minimize impacts on ratepayers bills.(E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.(ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.(iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.(H)Enhance distribution systems and demand-side energy management.(H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy.(ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan.(iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity.(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.(2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).(B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.(4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.(B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.(C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.(D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.(ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.(E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.(2) Each electrical corporations plan shall follow Section 454.5.(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).(B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(C) The resource adequacy requirements established pursuant to Section 380.(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.(f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.(2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.(g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4.(h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:(A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.(B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.(C) The resource has a construction and development lead time of at least five years.(D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.(E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.(2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.(i) For purposes of this section, the following definitions apply:(1) Load-serving entity has the same meaning as defined in Section 380.(2) Long term means a time period that includes five or more years in the future.(3) Midterm means a time period between two and five years in the future.(4) Short term means a time period between the present and two years in the future. |
|---|
| 129 | | - | |
|---|
| 130 | | - | 454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.(C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.(D) Minimize impacts on ratepayers bills.(E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.(ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.(iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.(H)Enhance distribution systems and demand-side energy management.(H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy.(ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan.(iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity.(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.(2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).(B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.(4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.(B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.(C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.(D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.(ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.(E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.(2) Each electrical corporations plan shall follow Section 454.5.(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).(B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(C) The resource adequacy requirements established pursuant to Section 380.(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.(f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.(2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.(g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4.(h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:(A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.(B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.(C) The resource has a construction and development lead time of at least five years.(D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.(E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.(2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.(i) For purposes of this section, the following definitions apply:(1) Load-serving entity has the same meaning as defined in Section 380.(2) Long term means a time period that includes five or more years in the future.(3) Midterm means a time period between two and five years in the future.(4) Short term means a time period between the present and two years in the future. |
|---|
| 131 | | - | |
|---|
| 132 | | - | 454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.(C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.(D) Minimize impacts on ratepayers bills.(E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.(ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.(iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.(H)Enhance distribution systems and demand-side energy management.(H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy.(ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan.(iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity.(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.(J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.(2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).(B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.(4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.(B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.(C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.(D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.(ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.(E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.(2) Each electrical corporations plan shall follow Section 454.5.(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).(B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(C) The resource adequacy requirements established pursuant to Section 380.(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.(f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.(2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.(g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4.(h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:(A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.(B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.(C) The resource has a construction and development lead time of at least five years.(D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.(E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.(2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.(i) For purposes of this section, the following definitions apply:(1) Load-serving entity has the same meaning as defined in Section 380.(2) Long term means a time period that includes five or more years in the future.(3) Midterm means a time period between two and five years in the future.(4) Short term means a time period between the present and two years in the future. |
|---|
| 133 | | - | |
|---|
| 134 | | - | |
|---|
| 135 | | - | |
|---|
| 136 | | - | 454.52. (a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following: |
|---|
| 137 | | - | |
|---|
| 138 | | - | (A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code. |
|---|
| 139 | | - | |
|---|
| 140 | | - | (B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3. |
|---|
| 141 | | - | |
|---|
| 142 | | - | (C) Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates. |
|---|
| 143 | | - | |
|---|
| 144 | | - | (D) Minimize impacts on ratepayers bills. |
|---|
| 145 | | - | |
|---|
| 146 | | - | (E) (i) Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls. |
|---|
| 147 | | - | |
|---|
| 148 | | - | (ii) In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning. |
|---|
| 149 | | - | |
|---|
| 150 | | - | (iii) To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code. |
|---|
| 151 | | - | |
|---|
| 152 | | - | (F) Comply with paragraph (1) of subdivision (b) of Section 399.13. |
|---|
| 153 | | - | |
|---|
| 154 | | - | (G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities. |
|---|
| 155 | | - | |
|---|
| 156 | | - | (H)Enhance distribution systems and demand-side energy management. |
|---|
| 157 | | - | |
|---|
| 158 | | - | |
|---|
| 159 | | - | |
|---|
| 160 | | - | (H) (i) In addition to, and separate from, the other requirements of this section, meet the incremental load-shifting allocation established in subdivision (b) of Section 25302.7 of the Public Resources Code, to the extent that the allocation is cost effective, as measured by the avoided cost calculator or in comparison to the cost of alternative sources of resource adequacy. |
|---|
| 161 | | - | |
|---|
| 162 | | - | (ii) Each load-serving entity shall be allocated its share of credit for nonemergency load-shifting strategies that are procured or obtained by any centralized procurement mechanism, broadly applicable rate design program, or other collective activity for the purpose of including that load shifting in its plan. |
|---|
| 163 | | - | |
|---|
| 164 | | - | (iii) A plan that does not forecast meeting its incremental load-shifting goal shall explain and document why it cannot be met cost-effectively or is otherwise unachievable and demonstrate that it is more cost effective to acquire incremental net peak capacity. |
|---|
| 165 | | - | |
|---|
| 166 | | - | (I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. |
|---|
| 167 | | - | |
|---|
| 168 | | - | (J) Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources. |
|---|
| 169 | | - | |
|---|
| 170 | | - | (2) (A) The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1). |
|---|
| 171 | | - | |
|---|
| 172 | | - | (B) The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan. |
|---|
| 173 | | - | |
|---|
| 174 | | - | (3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers. |
|---|
| 175 | | - | |
|---|
| 176 | | - | (4) (A) On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51. |
|---|
| 177 | | - | |
|---|
| 178 | | - | (B) If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need. |
|---|
| 179 | | - | |
|---|
| 180 | | - | (C) Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51. |
|---|
| 181 | | - | |
|---|
| 182 | | - | (D) (i) Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53. |
|---|
| 183 | | - | |
|---|
| 184 | | - | (ii) Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract. |
|---|
| 185 | | - | |
|---|
| 186 | | - | (E) The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code. |
|---|
| 187 | | - | |
|---|
| 188 | | - | (b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review. |
|---|
| 189 | | - | |
|---|
| 190 | | - | (2) Each electrical corporations plan shall follow Section 454.5. |
|---|
| 191 | | - | |
|---|
| 192 | | - | (3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following: |
|---|
| 193 | | - | |
|---|
| 194 | | - | (A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a). |
|---|
| 195 | | - | |
|---|
| 196 | | - | (B) A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products. |
|---|
| 197 | | - | |
|---|
| 198 | | - | (C) The resource adequacy requirements established pursuant to Section 380. |
|---|
| 199 | | - | |
|---|
| 200 | | - | (4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products. |
|---|
| 201 | | - | |
|---|
| 202 | | - | (c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance. |
|---|
| 203 | | - | |
|---|
| 204 | | - | (d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission. |
|---|
| 205 | | - | |
|---|
| 206 | | - | (e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013. |
|---|
| 207 | | - | |
|---|
| 208 | | - | (f) (1) The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans. |
|---|
| 209 | | - | |
|---|
| 210 | | - | (2) The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025. |
|---|
| 211 | | - | |
|---|
| 212 | | - | (g) For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, line item resource for purposes of complying with Section 398.4. |
|---|
| 213 | | - | |
|---|
| 214 | | - | (h) (1) Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section: |
|---|
| 215 | | - | |
|---|
| 216 | | - | (A) The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources. |
|---|
| 217 | | - | |
|---|
| 218 | | - | (B) The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53. |
|---|
| 219 | | - | |
|---|
| 220 | | - | (C) The resource has a construction and development lead time of at least five years. |
|---|
| 221 | | - | |
|---|
| 222 | | - | (D) The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels. |
|---|
| 223 | | - | |
|---|
| 224 | | - | (E) The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation. |
|---|
| 225 | | - | |
|---|
| 226 | | - | (2) Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023. |
|---|
| 227 | | - | |
|---|
| 228 | | - | (i) For purposes of this section, the following definitions apply: |
|---|
| 229 | | - | |
|---|
| 230 | | - | (1) Load-serving entity has the same meaning as defined in Section 380. |
|---|
| 231 | | - | |
|---|
| 232 | | - | (2) Long term means a time period that includes five or more years in the future. |
|---|
| 233 | | - | |
|---|
| 234 | | - | (3) Midterm means a time period between two and five years in the future. |
|---|
| 235 | | - | |
|---|
| 236 | | - | (4) Short term means a time period between the present and two years in the future. |
|---|
| 237 | | - | |
|---|
| 238 | | - | SEC. 3. Chapter 11 (commencing with Section 8500) is added to Division 4.1 of the Public Utilities Code, to read: CHAPTER 11. Rates8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility.(b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website.(d) As part of a new or existing proceeding, the commission shall consider both of the following:(1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load.(2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.(e) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1.(2) Electric service provider has the same meaning as defined in Section 218.3.(3) Electrical corporation has the same meaning as defined in Section 218.(4) Energy Commission means the State Energy Resources Conservation and Development Commission. (5) Load-serving entity has the same meaning as defined in Section 380.(6) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours. |
|---|
| 239 | | - | |
|---|
| 240 | | - | SEC. 3. Chapter 11 (commencing with Section 8500) is added to Division 4.1 of the Public Utilities Code, to read: |
|---|
| 241 | | - | |
|---|
| 242 | | - | ### SEC. 3. |
|---|
| 243 | | - | |
|---|
| 244 | | - | CHAPTER 11. Rates8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility.(b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website.(d) As part of a new or existing proceeding, the commission shall consider both of the following:(1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load.(2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.(e) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1.(2) Electric service provider has the same meaning as defined in Section 218.3.(3) Electrical corporation has the same meaning as defined in Section 218.(4) Energy Commission means the State Energy Resources Conservation and Development Commission. (5) Load-serving entity has the same meaning as defined in Section 380.(6) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours. |
|---|
| 245 | | - | |
|---|
| 246 | | - | CHAPTER 11. Rates8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility.(b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website.(d) As part of a new or existing proceeding, the commission shall consider both of the following:(1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load.(2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.(e) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1.(2) Electric service provider has the same meaning as defined in Section 218.3.(3) Electrical corporation has the same meaning as defined in Section 218.(4) Energy Commission means the State Energy Resources Conservation and Development Commission. (5) Load-serving entity has the same meaning as defined in Section 380.(6) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours. |
|---|
| 247 | | - | |
|---|
| 248 | | - | CHAPTER 11. Rates |
|---|
| 249 | | - | |
|---|
| 250 | | - | CHAPTER 11. Rates |
|---|
| 251 | | - | |
|---|
| 252 | | - | 8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility.(b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework.(2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website.(d) As part of a new or existing proceeding, the commission shall consider both of the following:(1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load.(2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy.(e) For purposes of this section, all of the following definitions apply:(1) Community choice aggregator has the same meaning as defined in Section 331.1.(2) Electric service provider has the same meaning as defined in Section 218.3.(3) Electrical corporation has the same meaning as defined in Section 218.(4) Energy Commission means the State Energy Resources Conservation and Development Commission. (5) Load-serving entity has the same meaning as defined in Section 380.(6) Local publicly owned electric utility has the same meaning as defined in Section 224.3.(7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours. |
|---|
| 253 | | - | |
|---|
| 254 | | - | |
|---|
| 255 | | - | |
|---|
| 256 | | - | 8500. (a) All retail suppliers shall provide rate information to the Energy Commissions Market-Informed Demand Automation Server in order to provide third-party devices with access to real-time rate information for the purpose of efficiently automating load flexibility. |
|---|
| 257 | | - | |
|---|
| 258 | | - | (b) On or before January 1, 2028, the commission shall require all load-serving entities to offer optional dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework. |
|---|
| 259 | | - | |
|---|
| 260 | | - | (c) (1) On or before January 1, 2028, the governing board of each local publicly owned electric utility shall consider offering dynamic pricing tariffs consistent with the Energy Commissions electric load management standards (Article 5 (commencing with Section 1621) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) and the commissions California Flexible Unified Signal for Energy (CalFUSE) hourly dynamic pricing framework. |
|---|
| 261 | | - | |
|---|
| 262 | | - | (2) If a governing board does not offer dynamic pricing tariffs, the governing board shall adopt a resolution explaining why the governing board does not believe it would be in the best interest of their ratepayers and post the resolution on its internet website. |
|---|
| 263 | | - | |
|---|
| 264 | | - | (d) As part of a new or existing proceeding, the commission shall consider both of the following: |
|---|
| 265 | | - | |
|---|
| 266 | | - | (1) Whether larger differentials between peak and off-peak time-of-use periods, including larger differentials for the transmission and distribution portion of rates, would be a cost-effective way to address peak load. |
|---|
| 267 | | - | |
|---|
| 268 | | - | (2) Whether distinguishing between nighttime off-peak and daytime off-peak periods would be a cost-effective way to align flexible load with periods of abundant renewable and zero-carbon energy. |
|---|
| 269 | | - | |
|---|
| 270 | | - | (e) For purposes of this section, all of the following definitions apply: |
|---|
| 271 | | - | |
|---|
| 272 | | - | (1) Community choice aggregator has the same meaning as defined in Section 331.1. |
|---|
| 273 | | - | |
|---|
| 274 | | - | (2) Electric service provider has the same meaning as defined in Section 218.3. |
|---|
| 275 | | - | |
|---|
| 276 | | - | (3) Electrical corporation has the same meaning as defined in Section 218. |
|---|
| 277 | | - | |
|---|
| 278 | | - | (4) Energy Commission means the State Energy Resources Conservation and Development Commission. |
|---|
| 279 | | - | |
|---|
| 280 | | - | (5) Load-serving entity has the same meaning as defined in Section 380. |
|---|
| 281 | | - | |
|---|
| 282 | | - | (6) Local publicly owned electric utility has the same meaning as defined in Section 224.3. |
|---|
| 283 | | - | |
|---|
| 284 | | - | (7) Retail supplier means an electrical corporation, community choice aggregator, electric service provider, or local publicly owned electric utility. Retail supplier does not include electrical corporations with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours. |
|---|
| 285 | | - | |
|---|
| 286 | | - | SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
|---|
| 287 | | - | |
|---|
| 288 | | - | SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
|---|
| 289 | | - | |
|---|
| 290 | | - | SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
|---|
| 291 | | - | |
|---|
| 292 | | - | ### SEC. 4. |
|---|
| 293 | | - | |
|---|
| 294 | | - | |
|---|
| 295 | | - | |
|---|
| 296 | | - | |
|---|
| 297 | | - | |
|---|
| 298 | | - | For purposes of this chapter, the following definitions apply: |
|---|
| 299 | | - | |
|---|
| 300 | | - | |
|---|
| 58 | + | 25545. For purposes of this chapter, the following definitions apply: |
|---|