| 1 | | - | Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 842Introduced by Senator SternFebruary 21, 2025 An act to add Section 25216.2 to the Public Resources Code, and to add Sections 380.1, 380.6, and 454.62 to the Public Utilities Code, relating to energy.LEGISLATIVE COUNSEL'S DIGESTSB 842, as amended, Stern. Energy: firm zero-carbon resources.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the Public Utilities Commission, Commission (PUC), the Independent System Operator, and the State Air Resources Board, on or before December 31, 2023, to submit to the Legislature an assessment of the firm zero-carbon resources that support a clean, reliable, and resilient electrical grid in California and will achieve the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045, as specified.This bill would state that it is the intent of the legislature to enact future legislation to support the deployment of firm zero-carbon energy resources in order to enhance local reliability, improve grid resilience, and reduce ongoing ratepayer costs.Existing law vests the PUC with regulatory authority over public utilities, including electrical corporations. Existing law requires electrical corporations to submit information to the PUC for various purposes, as provided.This bill would require the Energy Commission, on or before July 1, 2026, through a new or ongoing proceeding, to identify programs it administers that provide, or could provide, financial support to deploy firm zero-carbon resources, mechanisms to use uncommitted or new authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes, as provided, and the expected scope of energy resources that could be deployed based on current and expected funding availability. The bill would require the PUC, on or before December 31, 2026, through a new or ongoing proceeding, to establish or identify a process by which each load-serving entity subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs, as provided. The bill would require the PUC, on or before December 31, 2026, to produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term, as provided. The bill would require the PUC, beginning on or before December 31, 2026, to evaluate resources necessary to optimize local reliability at least cost. The bill would require the PUC, as part of the evaluation, to ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost and that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas.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 a part of the act and because a violation of a PUC action implementing those provisions would be a crime, 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 a specified reason.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. The Legislature finds and declares all of the following:(a) Firm zero-carbon resources, which include renewable resources that can, along with other resources, provide nonemitting firm dispatchable capacity, are essential to advancing Californias clean energy goals and ensuring a reliable, resilient, and affordable electricity system, including in the face of growing challenges posed by extended weather events and wildfire risks.(b) Firm zero-carbon resources are not fully represented or valued in the states energy planning processes or market rules, which may lead to suboptimal energy and cost outcomes.(c) Several funding programs can be aligned to support the deployment of firm zero-carbon resources and other technologies needed to enhance system and local reliability and meet the states clean energy and affordability goals.(d) Enabling the widest array of clean energy resources, including firm zero-carbon resources, to participate in the states energy markets as soon as possible will maximize competition and innovation, and deliver the most affordable energy outcomes for California ratepayers.SEC. 2. Section 25216.2 is added to the Public Resources Code, to read:25216.2. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52 of the Public Utilities Code.(b) On or before July 1, 2026, through a new or ongoing proceeding, the commission shall do all of the following in relation to firm zero-carbon resources:(1) Identify programs administered by the commission that provide, or could provide, financial support to deploy firm zero-carbon resources, including energy storage, to enhance system and local reliability of Californias electrical grid in the long term, midterm, and short term.(2) Identify mechanisms to use uncommitted or newly authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes in the short term and midterm.(3) Identify the expected scope of energy resources that could be deployed based on current and expected funding availability and the associated attributes in the long term, midterm, and short term, including all of the following:(A) Total capacity, on a megawatt basis, and for energy storage, on a megawatt and megawatthour basis.(B) Expected benefits to energy reliability, including local reliability.(C) Any expected deficiencies, on a megawatt or megawatthour basis, to energy reliability, including local reliability.(D) Proposed funding needs of currently operating programs to address any expected deficiencies in energy reliability, including local reliability, especially in the midterm and short term.SEC. 3. Section 380.1 is added to the Public Utilities Code, to read:380.1. (a) For purposes of this section, firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(b) On or before December 31, 2026, through a new or ongoing proceeding, the commission shall establish or identify a current process by which each load-serving entity, as defined in Section 380, subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs.(c) The process shall be designed to identify and consider approval of projects that achieve all of the following outcomes:(1) Deploy least cost options for providing local reliability using firm zero-carbon resources.(2) Enhance grid reliability during electrical grid stress conditions that may persist for multiple days.(3) Increase resource diversity in the state.(4) Reduce emissions in low-income and disadvantaged communities.(5) Support efforts to improve electrical affordability.SEC. 4. Section 380.6 is added to the Public Utilities Code, to read:380.6. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52.(b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term.(c) The report produced pursuant to subdivision (b) shall include all of the following:(1) Characterization of the resource attributes vital for local reliability, and identification of firm zero-carbon resources capable of providing those attributes.(2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs.(3) Identification of priority regions for deploying firm zero-carbon resources to provide local reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2).(4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability.(5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be requiredsuch as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the states energy goals and achieve the outcomes of this section.(6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes.(d) The commission may propose pilot or demonstration market mechanisms to encourage timely procurement of the resources identified in the report and to advance the objectives of this section.SEC. 5. Section 454.62 is added to the Public Utilities Code, to read:454.62. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Load-serving entity has the same meaning as defined in Section 380.(b) Beginning on or before December 31, 2026, pursuant to the process described in Section 454.52, the commission shall evaluate resources necessary to optimize local reliability at least cost, consistent with the goals of Section 454.53.(c) As part of the evaluation, the commission shall do both of the following:(1) Ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost, including firm zero-carbon resources with the attributes described in Section 380.1.(2) Ensure that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas.SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only 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.It is the intent of the legislature to enact future legislation to support the deployment of firm zero-carbon energy resources in order to enhance local reliability, improve grid resilience, and reduce ongoing ratepayer costs. |
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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 842Introduced by Senator SternFebruary 21, 2025 An act relating to energy.LEGISLATIVE COUNSEL'S DIGESTSB 842, as introduced, Stern. Energy: firm zero-carbon resources.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the Public Utilities Commission, the Independent System Operator, and the State Air Resources Board, on or before December 31, 2023, to submit to the Legislature an assessment of the firm zero-carbon resources that support a clean, reliable, and resilient electrical grid in California and will achieve the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045, as specified.This bill would state that it is the intent of the legislature to enact future legislation to support the deployment of firm zero-carbon energy resources in order to enhance local reliability, improve grid resilience, and reduce ongoing ratepayer costs.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. It is the intent of the legislature to enact future legislation to support the deployment of firm zero-carbon energy resources in order to enhance local reliability, improve grid resilience, and reduce ongoing ratepayer costs. |
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| 65 | | - | |
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| 66 | | - | (a) Firm zero-carbon resources, which include renewable resources that can, along with other resources, provide nonemitting firm dispatchable capacity, are essential to advancing Californias clean energy goals and ensuring a reliable, resilient, and affordable electricity system, including in the face of growing challenges posed by extended weather events and wildfire risks. |
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| 67 | | - | |
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| 68 | | - | (b) Firm zero-carbon resources are not fully represented or valued in the states energy planning processes or market rules, which may lead to suboptimal energy and cost outcomes. |
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| 69 | | - | |
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| 70 | | - | (c) Several funding programs can be aligned to support the deployment of firm zero-carbon resources and other technologies needed to enhance system and local reliability and meet the states clean energy and affordability goals. |
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| 71 | | - | |
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| 72 | | - | (d) Enabling the widest array of clean energy resources, including firm zero-carbon resources, to participate in the states energy markets as soon as possible will maximize competition and innovation, and deliver the most affordable energy outcomes for California ratepayers. |
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| 73 | | - | |
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| 74 | | - | SEC. 2. Section 25216.2 is added to the Public Resources Code, to read:25216.2. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52 of the Public Utilities Code.(b) On or before July 1, 2026, through a new or ongoing proceeding, the commission shall do all of the following in relation to firm zero-carbon resources:(1) Identify programs administered by the commission that provide, or could provide, financial support to deploy firm zero-carbon resources, including energy storage, to enhance system and local reliability of Californias electrical grid in the long term, midterm, and short term.(2) Identify mechanisms to use uncommitted or newly authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes in the short term and midterm.(3) Identify the expected scope of energy resources that could be deployed based on current and expected funding availability and the associated attributes in the long term, midterm, and short term, including all of the following:(A) Total capacity, on a megawatt basis, and for energy storage, on a megawatt and megawatthour basis.(B) Expected benefits to energy reliability, including local reliability.(C) Any expected deficiencies, on a megawatt or megawatthour basis, to energy reliability, including local reliability.(D) Proposed funding needs of currently operating programs to address any expected deficiencies in energy reliability, including local reliability, especially in the midterm and short term. |
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| 76 | | - | SEC. 2. Section 25216.2 is added to the Public Resources Code, to read: |
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| 77 | | - | |
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| 78 | | - | ### SEC. 2. |
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| 80 | | - | 25216.2. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52 of the Public Utilities Code.(b) On or before July 1, 2026, through a new or ongoing proceeding, the commission shall do all of the following in relation to firm zero-carbon resources:(1) Identify programs administered by the commission that provide, or could provide, financial support to deploy firm zero-carbon resources, including energy storage, to enhance system and local reliability of Californias electrical grid in the long term, midterm, and short term.(2) Identify mechanisms to use uncommitted or newly authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes in the short term and midterm.(3) Identify the expected scope of energy resources that could be deployed based on current and expected funding availability and the associated attributes in the long term, midterm, and short term, including all of the following:(A) Total capacity, on a megawatt basis, and for energy storage, on a megawatt and megawatthour basis.(B) Expected benefits to energy reliability, including local reliability.(C) Any expected deficiencies, on a megawatt or megawatthour basis, to energy reliability, including local reliability.(D) Proposed funding needs of currently operating programs to address any expected deficiencies in energy reliability, including local reliability, especially in the midterm and short term. |
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| 82 | | - | 25216.2. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52 of the Public Utilities Code.(b) On or before July 1, 2026, through a new or ongoing proceeding, the commission shall do all of the following in relation to firm zero-carbon resources:(1) Identify programs administered by the commission that provide, or could provide, financial support to deploy firm zero-carbon resources, including energy storage, to enhance system and local reliability of Californias electrical grid in the long term, midterm, and short term.(2) Identify mechanisms to use uncommitted or newly authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes in the short term and midterm.(3) Identify the expected scope of energy resources that could be deployed based on current and expected funding availability and the associated attributes in the long term, midterm, and short term, including all of the following:(A) Total capacity, on a megawatt basis, and for energy storage, on a megawatt and megawatthour basis.(B) Expected benefits to energy reliability, including local reliability.(C) Any expected deficiencies, on a megawatt or megawatthour basis, to energy reliability, including local reliability.(D) Proposed funding needs of currently operating programs to address any expected deficiencies in energy reliability, including local reliability, especially in the midterm and short term. |
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| 84 | | - | 25216.2. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52 of the Public Utilities Code.(b) On or before July 1, 2026, through a new or ongoing proceeding, the commission shall do all of the following in relation to firm zero-carbon resources:(1) Identify programs administered by the commission that provide, or could provide, financial support to deploy firm zero-carbon resources, including energy storage, to enhance system and local reliability of Californias electrical grid in the long term, midterm, and short term.(2) Identify mechanisms to use uncommitted or newly authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes in the short term and midterm.(3) Identify the expected scope of energy resources that could be deployed based on current and expected funding availability and the associated attributes in the long term, midterm, and short term, including all of the following:(A) Total capacity, on a megawatt basis, and for energy storage, on a megawatt and megawatthour basis.(B) Expected benefits to energy reliability, including local reliability.(C) Any expected deficiencies, on a megawatt or megawatthour basis, to energy reliability, including local reliability.(D) Proposed funding needs of currently operating programs to address any expected deficiencies in energy reliability, including local reliability, especially in the midterm and short term. |
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| 88 | | - | 25216.2. (a) For purposes of this section, all of the following definitions apply: |
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| 89 | | - | |
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| 90 | | - | (1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7. |
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| 91 | | - | |
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| 92 | | - | (2) Long term, midterm, and short term have the same meanings as defined in Section 454.52 of the Public Utilities Code. |
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| 94 | | - | (b) On or before July 1, 2026, through a new or ongoing proceeding, the commission shall do all of the following in relation to firm zero-carbon resources: |
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| 95 | | - | |
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| 96 | | - | (1) Identify programs administered by the commission that provide, or could provide, financial support to deploy firm zero-carbon resources, including energy storage, to enhance system and local reliability of Californias electrical grid in the long term, midterm, and short term. |
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| 97 | | - | |
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| 98 | | - | (2) Identify mechanisms to use uncommitted or newly authorized funds in a manner that maximizes system and local reliability benefits and affordability outcomes in the short term and midterm. |
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| 99 | | - | |
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| 100 | | - | (3) Identify the expected scope of energy resources that could be deployed based on current and expected funding availability and the associated attributes in the long term, midterm, and short term, including all of the following: |
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| 102 | | - | (A) Total capacity, on a megawatt basis, and for energy storage, on a megawatt and megawatthour basis. |
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| 103 | | - | |
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| 104 | | - | (B) Expected benefits to energy reliability, including local reliability. |
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| 106 | | - | (C) Any expected deficiencies, on a megawatt or megawatthour basis, to energy reliability, including local reliability. |
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| 108 | | - | (D) Proposed funding needs of currently operating programs to address any expected deficiencies in energy reliability, including local reliability, especially in the midterm and short term. |
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| 110 | | - | SEC. 3. Section 380.1 is added to the Public Utilities Code, to read:380.1. (a) For purposes of this section, firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(b) On or before December 31, 2026, through a new or ongoing proceeding, the commission shall establish or identify a current process by which each load-serving entity, as defined in Section 380, subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs.(c) The process shall be designed to identify and consider approval of projects that achieve all of the following outcomes:(1) Deploy least cost options for providing local reliability using firm zero-carbon resources.(2) Enhance grid reliability during electrical grid stress conditions that may persist for multiple days.(3) Increase resource diversity in the state.(4) Reduce emissions in low-income and disadvantaged communities.(5) Support efforts to improve electrical affordability. |
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| 112 | | - | SEC. 3. Section 380.1 is added to the Public Utilities Code, to read: |
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| 114 | | - | ### SEC. 3. |
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| 116 | | - | 380.1. (a) For purposes of this section, firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(b) On or before December 31, 2026, through a new or ongoing proceeding, the commission shall establish or identify a current process by which each load-serving entity, as defined in Section 380, subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs.(c) The process shall be designed to identify and consider approval of projects that achieve all of the following outcomes:(1) Deploy least cost options for providing local reliability using firm zero-carbon resources.(2) Enhance grid reliability during electrical grid stress conditions that may persist for multiple days.(3) Increase resource diversity in the state.(4) Reduce emissions in low-income and disadvantaged communities.(5) Support efforts to improve electrical affordability. |
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| 118 | | - | 380.1. (a) For purposes of this section, firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(b) On or before December 31, 2026, through a new or ongoing proceeding, the commission shall establish or identify a current process by which each load-serving entity, as defined in Section 380, subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs.(c) The process shall be designed to identify and consider approval of projects that achieve all of the following outcomes:(1) Deploy least cost options for providing local reliability using firm zero-carbon resources.(2) Enhance grid reliability during electrical grid stress conditions that may persist for multiple days.(3) Increase resource diversity in the state.(4) Reduce emissions in low-income and disadvantaged communities.(5) Support efforts to improve electrical affordability. |
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| 120 | | - | 380.1. (a) For purposes of this section, firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(b) On or before December 31, 2026, through a new or ongoing proceeding, the commission shall establish or identify a current process by which each load-serving entity, as defined in Section 380, subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs.(c) The process shall be designed to identify and consider approval of projects that achieve all of the following outcomes:(1) Deploy least cost options for providing local reliability using firm zero-carbon resources.(2) Enhance grid reliability during electrical grid stress conditions that may persist for multiple days.(3) Increase resource diversity in the state.(4) Reduce emissions in low-income and disadvantaged communities.(5) Support efforts to improve electrical affordability. |
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| 124 | | - | 380.1. (a) For purposes of this section, firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code. |
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| 126 | | - | (b) On or before December 31, 2026, through a new or ongoing proceeding, the commission shall establish or identify a current process by which each load-serving entity, as defined in Section 380, subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs. |
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| 128 | | - | (c) The process shall be designed to identify and consider approval of projects that achieve all of the following outcomes: |
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| 129 | | - | |
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| 130 | | - | (1) Deploy least cost options for providing local reliability using firm zero-carbon resources. |
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| 132 | | - | (2) Enhance grid reliability during electrical grid stress conditions that may persist for multiple days. |
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| 134 | | - | (3) Increase resource diversity in the state. |
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| 135 | | - | |
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| 136 | | - | (4) Reduce emissions in low-income and disadvantaged communities. |
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| 138 | | - | (5) Support efforts to improve electrical affordability. |
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| 140 | | - | SEC. 4. Section 380.6 is added to the Public Utilities Code, to read:380.6. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52.(b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term.(c) The report produced pursuant to subdivision (b) shall include all of the following:(1) Characterization of the resource attributes vital for local reliability, and identification of firm zero-carbon resources capable of providing those attributes.(2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs.(3) Identification of priority regions for deploying firm zero-carbon resources to provide local reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2).(4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability.(5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be requiredsuch as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the states energy goals and achieve the outcomes of this section.(6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes.(d) The commission may propose pilot or demonstration market mechanisms to encourage timely procurement of the resources identified in the report and to advance the objectives of this section. |
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| 142 | | - | SEC. 4. Section 380.6 is added to the Public Utilities Code, to read: |
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| 144 | | - | ### SEC. 4. |
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| 146 | | - | 380.6. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52.(b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term.(c) The report produced pursuant to subdivision (b) shall include all of the following:(1) Characterization of the resource attributes vital for local reliability, and identification of firm zero-carbon resources capable of providing those attributes.(2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs.(3) Identification of priority regions for deploying firm zero-carbon resources to provide local reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2).(4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability.(5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be requiredsuch as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the states energy goals and achieve the outcomes of this section.(6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes.(d) The commission may propose pilot or demonstration market mechanisms to encourage timely procurement of the resources identified in the report and to advance the objectives of this section. |
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| 148 | | - | 380.6. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52.(b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term.(c) The report produced pursuant to subdivision (b) shall include all of the following:(1) Characterization of the resource attributes vital for local reliability, and identification of firm zero-carbon resources capable of providing those attributes.(2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs.(3) Identification of priority regions for deploying firm zero-carbon resources to provide local reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2).(4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability.(5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be requiredsuch as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the states energy goals and achieve the outcomes of this section.(6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes.(d) The commission may propose pilot or demonstration market mechanisms to encourage timely procurement of the resources identified in the report and to advance the objectives of this section. |
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| 149 | | - | |
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| 150 | | - | 380.6. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Long term, midterm, and short term have the same meanings as defined in Section 454.52.(b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term.(c) The report produced pursuant to subdivision (b) shall include all of the following:(1) Characterization of the resource attributes vital for local reliability, and identification of firm zero-carbon resources capable of providing those attributes.(2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs.(3) Identification of priority regions for deploying firm zero-carbon resources to provide local reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2).(4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability.(5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be requiredsuch as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the states energy goals and achieve the outcomes of this section.(6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes.(d) The commission may propose pilot or demonstration market mechanisms to encourage timely procurement of the resources identified in the report and to advance the objectives of this section. |
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| 151 | | - | |
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| 152 | | - | |
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| 153 | | - | |
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| 154 | | - | 380.6. (a) For purposes of this section, all of the following definitions apply: |
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| 155 | | - | |
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| 156 | | - | (1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code. |
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| 157 | | - | |
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| 158 | | - | (2) Long term, midterm, and short term have the same meanings as defined in Section 454.52. |
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| 159 | | - | |
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| 160 | | - | (b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local reliability with firm zero-carbon resources over the short term, midterm, and long term. |
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| 161 | | - | |
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| 162 | | - | (c) The report produced pursuant to subdivision (b) shall include all of the following: |
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| 163 | | - | |
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| 164 | | - | (1) Characterization of the resource attributes vital for local reliability, and identification of firm zero-carbon resources capable of providing those attributes. |
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| 165 | | - | |
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| 166 | | - | (2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs. |
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| 167 | | - | |
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| 168 | | - | (3) Identification of priority regions for deploying firm zero-carbon resources to provide local reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2). |
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| 169 | | - | |
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| 170 | | - | (4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability. |
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| 171 | | - | |
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| 172 | | - | (5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be requiredsuch as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the states energy goals and achieve the outcomes of this section. |
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| 173 | | - | |
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| 174 | | - | (6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes. |
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| 175 | | - | |
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| 176 | | - | (d) The commission may propose pilot or demonstration market mechanisms to encourage timely procurement of the resources identified in the report and to advance the objectives of this section. |
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| 177 | | - | |
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| 178 | | - | SEC. 5. Section 454.62 is added to the Public Utilities Code, to read:454.62. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Load-serving entity has the same meaning as defined in Section 380.(b) Beginning on or before December 31, 2026, pursuant to the process described in Section 454.52, the commission shall evaluate resources necessary to optimize local reliability at least cost, consistent with the goals of Section 454.53.(c) As part of the evaluation, the commission shall do both of the following:(1) Ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost, including firm zero-carbon resources with the attributes described in Section 380.1.(2) Ensure that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas. |
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| 179 | | - | |
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| 180 | | - | SEC. 5. Section 454.62 is added to the Public Utilities Code, to read: |
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| 181 | | - | |
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| 182 | | - | ### SEC. 5. |
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| 183 | | - | |
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| 184 | | - | 454.62. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Load-serving entity has the same meaning as defined in Section 380.(b) Beginning on or before December 31, 2026, pursuant to the process described in Section 454.52, the commission shall evaluate resources necessary to optimize local reliability at least cost, consistent with the goals of Section 454.53.(c) As part of the evaluation, the commission shall do both of the following:(1) Ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost, including firm zero-carbon resources with the attributes described in Section 380.1.(2) Ensure that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas. |
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| 185 | | - | |
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| 186 | | - | 454.62. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Load-serving entity has the same meaning as defined in Section 380.(b) Beginning on or before December 31, 2026, pursuant to the process described in Section 454.52, the commission shall evaluate resources necessary to optimize local reliability at least cost, consistent with the goals of Section 454.53.(c) As part of the evaluation, the commission shall do both of the following:(1) Ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost, including firm zero-carbon resources with the attributes described in Section 380.1.(2) Ensure that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas. |
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| 187 | | - | |
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| 188 | | - | 454.62. (a) For purposes of this section, all of the following definitions apply:(1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code.(2) Load-serving entity has the same meaning as defined in Section 380.(b) Beginning on or before December 31, 2026, pursuant to the process described in Section 454.52, the commission shall evaluate resources necessary to optimize local reliability at least cost, consistent with the goals of Section 454.53.(c) As part of the evaluation, the commission shall do both of the following:(1) Ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost, including firm zero-carbon resources with the attributes described in Section 380.1.(2) Ensure that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas. |
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| 189 | | - | |
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| 190 | | - | |
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| 191 | | - | |
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| 192 | | - | 454.62. (a) For purposes of this section, all of the following definitions apply: |
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| 193 | | - | |
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| 194 | | - | (1) Firm zero-carbon resources has the same meaning as defined in Section 25216.7 of the Public Resources Code. |
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| 195 | | - | |
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| 196 | | - | (2) Load-serving entity has the same meaning as defined in Section 380. |
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| 197 | | - | |
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| 198 | | - | (b) Beginning on or before December 31, 2026, pursuant to the process described in Section 454.52, the commission shall evaluate resources necessary to optimize local reliability at least cost, consistent with the goals of Section 454.53. |
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| 199 | | - | |
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| 200 | | - | (c) As part of the evaluation, the commission shall do both of the following: |
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| 201 | | - | |
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| 202 | | - | (1) Ensure that each load-serving entitys integrated resource plan considers all reasonable new resource options that could be deployed to meet local reliability requirements at least cost, including firm zero-carbon resources with the attributes described in Section 380.1. |
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| 203 | | - | |
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| 204 | | - | (2) Ensure that each load-serving entity take reasonable actions to ensure that an appropriate proportion of new resource development occurs in local reliability areas. |
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| 205 | | - | |
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| 206 | | - | SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only 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. |
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| 207 | | - | |
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| 208 | | - | SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only 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. |
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| 209 | | - | |
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| 210 | | - | SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only 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. |
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| 211 | | - | |
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| 212 | | - | ### SEC. 6. |
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| 213 | | - | |
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| 214 | | - | |
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| 215 | | - | |
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| 216 | | - | It is the intent of the legislature to enact future legislation to support the deployment of firm zero-carbon energy resources in order to enhance local reliability, improve grid resilience, and reduce ongoing ratepayer costs. |
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