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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Papan</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Papan</ns0:Name>
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<ns0:Title> An act to amend Section 25308 of the Public Resources Code, and to amend Sections 454.51, 454.52, and 454.57 of, and to add Section 454.57.5 to, the Public Utilities Code, relating to electricity. </ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Electricity: transmission planning and transmission facilities.</ns0:Subject>
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<html:p>
(1)
<html:span class="EnSpace"/>
Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), to provide transmission-focused guidance to the Independent System Operator (ISO) about resource portfolios of expected future renewable energy resources and zero-carbon resources, including the allocation of those resources by region based on technical feasibility and commercial interest in each region to allow the ISO to identify and approve transmission facilities needed to interconnect resources and reliably serve the needs of load centers, as specified. On December 23, 2022, the PUC, the Energy Commission, and the ISO entered into a memorandum of understanding related to resource and transmission planning, transmission development and permitting, procurement, and interconnections to achieve
reliability and policy needs and to coordinate the timely development of resources, resource interconnections, and needed transmission infrastructure. Existing law requires the Energy Commission and the PUC, in coordination with the ISO, every 5 years, to review the memorandum of understanding and a related workplan to ensure the memorandum and workplan reflect the coordination that is needed to help meet the state’s energy goals.
</html:p>
<html:p>This bill would require those entities, on or before January 1, 2028, to incorporate into an update any revisions as may be necessary to ensure that the memorandum and workplan reflect the requirements of Federal Energy Regulatory Commission Order 1920-A, including methods to evaluate resource portfolios that reflect the best available methods of decisionmaking under uncertainty.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Existing law vests the PUC with regulatory authority over public utilities, including
electrical corporations. Existing law requires the PUC to identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy and resource diversity in a cost-effective manner, as specified.
</html:p>
<html:p>This bill would require that the portfolio provide optimal integration in a cost-effective manner that maintains ratepayer affordability across a range of future uncertainties, as specified.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law establishes the ISO as a nonprofit, public benefit corporation to ensure efficient use and reliable operation of the transmission grid and to manage the transmission grid and related energy markets, as provided. Existing law requires the PUC, in consultation with the Energy Commission, to provide transmission-focused guidance to the ISO about resource portfolios, as specified.
</html:p>
<html:p>This
bill would require the PUC, before approving the procurement of certain resources, to complete a transmission and interconnection availability assessment and to confirm there is sufficient infrastructure in the last approved transmission plan from the ISO to support the cost-effective procurement of approved resources by load-serving entities, as specified.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Existing law requires the PUC, in consultation with the Energy Commission, to provide transmission-focused guidance to the ISO about resource portfolios of expected future renewable energy resources and zero-carbon resources, as specified, to allow the ISO to identify and approve transmission facilities needed to interconnect resources and reliably serve the needs of load centers. Existing law requires the guidance to include projections each year to support planning and approvals by the ISO in its annual transmission planning process, including projections of resource portfolios and
electricity demand by region for at least 15 years into the future, as specified. Existing law expresses the state policy that planning for new transmission facilities include consideration of the goal of increasing systemwide reliability and cost efficiency, among other state policy goals.
</html:p>
<html:p>This bill would require the PUC, in consultation with the Energy Commission, when evaluating resource portfolios for submission to the ISO’s transmission planning process, to submit at least one resource portfolio that is adaptable and low risk in maintaining ratepayer affordability across a range of future uncertainties, as provided. The bill would remove the annual requirement for the projections and would require the projections of resource portfolios and electricity demand by region to be for at least 20, rather than 15, years into the future. The bill would add to those state policy goals increasing systemwide adaptability and maintaining ratepayer affordability across a
range of future uncertainties, as specified.</html:p>
<html:p>The bill would also require the PUC, beginning on or before January 1, 2028, to make available on its internet website all nonconfidential input and output data used in the integrated resource planning and transmission planning processes, as specified.</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>Because certain provisions of this bill would be a part of the act and because a violation of a PUC action implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_4839163A-C784-4513-9A2B-1F8FE363C605">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 25308 of the
<ns0:DocName>Public Resources Code</ns0:DocName>
is amended to read:
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<ns0:Num>25308.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The commission and Public Utilities Commission, in coordination with the Independent System Operator, every five years, shall review and update as necessary the Memorandum of Understanding Between the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) and the California Independent System Operator (ISO) Regarding Transmission and Resource Planning and Implementation (December 23, 2022) and the related workplan to ensure the memorandum and workplan reflect the coordination that is needed to help meet the state’s energy goals, including those goals described in Section 454.53 of the Public Utilities Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On or before January 1, 2028, the commission and Public Utilities Commission, in coordination with the Independent System Operator, shall incorporate into an update any revisions as may be necessary to ensure that the memorandum and workplan described in subdivision (a) reflect the requirements of Federal Energy Regulatory Commission Order 1920-A, as published in Volume 89 of the Federal Register, Number 97174. These revisions shall include methods to evaluate resource portfolios that reflect the best available methods of decision-making under uncertainty.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 454.51 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_DAF05251-B998-45C6-8968-ABDE36089F49">
<ns0:Num>454.51.</ns0:Num>
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<ns0:Content>
<html:p>The commission shall do all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy and resource diversity in a cost-effective manner that maintains ratepayer affordability across a range of future uncertainties, including, but not limited to, load growth, in-state and out-of-state resource availability, and technology cost. The portfolio shall be used by the
commission to establish integrated resource planning-based procurement requirements that rely on zero-carbon-emitting resources to the maximum extent reasonable and be designed to achieve the state policy specified in Section 454.53 and any statewide greenhouse gas emissions limit established pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) or any successor legislation.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Direct each electrical corporation to include, as part of its proposed procurement plan, a strategy for procuring best-fit and least-cost resources to satisfy the portfolio needs identified by the commission pursuant to subdivision (a).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Ensure that the net costs of any incremental renewable energy integration
resources, or diverse resources, procured by an electrical corporation to satisfy the need identified in subdivision (a) are allocated on a fully nonbypassable basis consistent with the treatment of costs identified in paragraph (2) of subdivision (c) of Section 365.1.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Permit community choice aggregators to submit proposals for satisfying their portion of the renewable integration and diverse resources need identified in subdivision (a). If the commission finds this need is best met through long-term procurement commitments for resources, community choice aggregators shall also be required to make long-term commitments for resources. The commission shall approve proposals pursuant to this subdivision if it finds all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The resources proposed by a community choice aggregator will provide equivalent integration of
renewable energy.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The resources proposed by a community choice aggregator will promote the efficient achievement of state energy policy objectives, including reductions in greenhouse gas emissions.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Bundled customers of an electrical corporation will be indifferent to the approval of the community choice aggregator proposals.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Ensure that all costs resulting from nonperformance in satisfying the need
in subdivision (a) or (d), as applicable, shall be borne by the load-serving entity, as defined in Section 380, that failed to perform.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 454.52 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_68CB9BCC-E01C-4371-8115-423110279C27">
<ns0:Num>454.52.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
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 sector’s percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Minimize impacts on ratepayers’ bills.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
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 commission’s 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.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Comply with paragraph (1) of subdivision (b) of Section 399.13.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Strengthen the diversity,
sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Enhance distribution systems and demand-side energy management.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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 state’s energy goals at the least cost to ratepayers.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Before approving procurement pursuant to this subdivision, the commission shall complete a
transmission and interconnection availability assessment and confirm that there is sufficient infrastructure in the last approved transmission plan from the Independent System Operator to support the cost-effective procurement of approved resources by load-serving entities. In determining if there is sufficient infrastructure, the commission shall consider the need to maintain a competitive market for resource procurement. The transmission and interconnection availability assessment shall be made available for review and comment as part of a public proceeding.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Each electrical corporation’s plan shall follow Section
454.5.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The resource adequacy requirements established pursuant to Section 380.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource
for
the purpose of complying with Section 398.4.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The resource directly supports attainment of the goals specified in Section 454.53 without increasing the state’s dependence on any fossil fuel-based resources.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The resource has a
construction and development lead time of at least five years.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of this section, all of the
following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Load-serving entity” has the same meaning as defined in Section 380.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Long term” means a time period that includes five or more years in the future.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Midterm” means a time period between two and five years in the future.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Short term” means a time period between the present and two years in the future.
</html:p>
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<ns0:BillSection id="id_D04D90C5-D2BF-4D00-962E-D6BD1C051907">
<ns0:Num>SEC. 4.</ns0:Num>
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Section 454.57 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>454.57.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
This section shall be known, and may be cited, as the Accelerating Renewable Energy Delivery Act.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The commission, the Energy Commission, and the State Air Resources Board have jointly estimated that the state’s installed electrical generation may need a threefold increase in capacity to meet state carbon-free electricity policy targets.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Record-setting renewable energy
generation build rates are needed to meet the goals of the California Renewables Portfolio Standard Program and the Senate Bill 100 (Chapter 312 of the Statutes of 2018) target of supplying 100 percent of retail sales of electricity from renewable energy resources and zero-carbon resources. However, these build rates are not achievable without additional electrical transmission lines and facilities connecting new resources to consumers in the state’s load centers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In recent years, California has seen problems in delivering renewable energy resources and zero-carbon resources to customers, including problems caused by constraints on the transmission system. First, there are generation pockets where the total potential output from renewable energy generation exceeds the capacity of the transmission system to export that energy. Second, there are load pockets where there is insufficient transmission capacity to import the renewable energy
resources and zero-carbon resources that are available. Both types of constraints should be promptly fixed so that all available renewable energy resources and zero-carbon resources can be delivered to customers.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Reducing the use of nonpreferred resources in disadvantaged communities has been a priority for those communities, and they would benefit from increased access to electricity from new renewable energy resources and zero-carbon resources delivered to serve in-city loads.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
New transmission facilities have many steps that must be accomplished before they are online and delivering electricity. Major new transmission lines can take more than a decade from initial planning to operation.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
New transmission facilities should be planned proactively to support delivery to load centers from expected locations
for future renewable energy resource and zero-carbon resource development, where those locations are identified in the integrated resource planning process pursuant to Sections 454.52 and 9621 or as part of longer range planning processes pursuant to Section 454.53.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
New transmission facilities should be designed to minimize the risk of transmission-triggered wildfires.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
New transmission facilities should be designed to facilitate renewable energy transmission across California to better manage the variability of the electrical supply.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The Independent System Operator has issued a 20-Year Transmission Outlook that identifies substantial additional transmission projects needed to integrate renewable
energy resources and storage for retail suppliers within the Independent System Operator balancing authority. Given the scale of this challenge, there is an urgent need to prioritize and accelerate the substantial effort needed to build transmission projects with long development times.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Recognizing that the Independent System Operator’s Federal Energy Regulatory Commission-approved tariff requires the Independent System Operator to plan and approve new transmission facilities needed to achieve the state’s goals, it is the intent of the Legislature that the Independent System Operator shall take notice of the state policies expressed in this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In support of the state’s policy to supply increasing amounts of electricity from renewable
energy resources and zero-carbon resources pursuant to Article 16 (commencing with Section 399.11) of Chapter 2.3 and Section 454.53, beginning as soon as possible and not later than March 31, 2024, the commission, in consultation with the Energy Commission, shall provide transmission-focused guidance to the Independent System Operator about resource portfolios of expected future renewable energy resources and zero-carbon resources. The guidance shall include the allocation of those resources by region based on technical feasibility and commercial interest in each region to allow the Independent System Operator to identify and approve transmission facilities needed to interconnect resources and reliably serve the needs of load centers.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When evaluating
resource portfolios for submission to the Independent System Operator’s transmission planning process, the commission, in consultation with the Energy Commission, shall submit at least one resource portfolio that is adaptable and low risk in maintaining ratepayer affordability across a range of future uncertainties, including, but not limited to, load growth, in-state and out-of-state resource availability, and technology cost. The methods employed to evaluate resource portfolios shall be the best available methods of decision-making under uncertainty.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
In providing the guidance described in subdivision (d), the commission and the Energy Commission shall provide projections, including from the integrated
energy policy report prepared pursuant to Section 25302 of the Public Resources Code and the load-serving entities’ integrated resource plans prepared pursuant to Section 454.52, to support planning and approvals by the Independent System Operator in its
transmission planning process, including by doing all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Providing projections of resource portfolios and electricity demand by region for at least 20
years into the future to ensure adequate lead time for the Independent System Operator to analyze and approve transmission development, and for the permitting and construction of the approved facilities, to meet the projections.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Providing load growth projections, including projected growth from building and transportation electrification, that are consistent with achieving the economywide greenhouse gas emissions reductions required pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety
Code).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Providing projections of new renewable energy resources and zero-carbon resources consistent with the build rates necessary to achieve the targets established in Article 16 (commencing with Section 399.11) of Chapter 2.3 and Section 454.53.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Providing resource projections that, combined with transmission capacity expansions, are expected to substantially reduce, no later than 2035, the need to rely on nonpreferred resources in local capacity areas.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The resource projections in subparagraph (A) shall include consideration of cost-effective and feasible alternatives to transmission capacity expansions, including the use of energy
storage resources, renewable energy resources, or zero-carbon resources that are located within the local capacity areas.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Providing projections for offshore wind generation as identified by the SB 100 Joint Agency Report of the commission, the Energy Commission, and the State Air Resources Board, and informed by the strategic plan developed pursuant to Section 25991 of the Public Resources Code, to allow the Independent System Operator to identify and approve transmission facilities needed from offshore wind resource areas that would be sufficient to make offshore wind resources fully deliverable to load centers.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Providing projections for increases in imports of electricity into the state that reflect the expected development of renewable energy resources and zero-carbon resources in other parts of the Western Interconnection for the purpose of delivering clean energy to
California balancing authorities.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
On or before January 15, 2023, the commission shall request the Independent System Operator to do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Identify, based as much as possible on studies completed before January 1, 2023, by the Independent System Operator and projections provided before January 1, 2023, by the commission and the Energy Commission, the highest priority transmission facilities that are needed to allow for increased transmission capacity into local capacity areas to deliver renewable energy resources or zero-carbon resources that are expected to be developed by 2035 into those areas.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Consider whether to approve transmission projects identified pursuant to paragraph (1) as part of its 2022–23 transmission planning process.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
It is the policy of the state that new transmission facilities be built on a timely basis and in anticipation of new electrical generation that will be built to meet the state’s renewable energy resource and zero-carbon resource targets, with interim targets for transmission capacity additions that demonstrate adequate progress toward meeting these long-term transmission needs. The commission shall request that the Independent System Operator implement this policy by approving transmission projects needed based on a longer planning period supported by the guidance provided pursuant to subdivisions (d) and (e). The projects should be approved in time to be online when needed, considering permitting and construction lead times.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
It is the policy of the state that planning for new transmission facilities considers the following goals:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Minimizing the risk of
wildfire.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Increasing systemwide reliability, adaptability, and cost efficiency, including through the sharing of diverse electrical generation resources within California and with other parts of the Western Interconnection.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Maintaining ratepayer affordability across a range of future uncertainties, including, but not limited to, load growth, in-state and out-of-state resource availability, and technology cost.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Eliminating transmission constraints that prevent electrical generation resources from delivering to the wider electrical grid and that prevent importing energy into load pockets.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of this section, both of the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Local capacity area” means a transmission constrained load pocket, as identified by the Independent System Operator, where local generation capacity is needed for reliability due to insufficient transmission capacity into the load pocket to
meet electricity demand with electricity from outside of the load pocket.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Nonpreferred resources” means electrical generation resources that are not renewable energy resources or zero-carbon resources pursuant to Section 454.53.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_5EBD3EA6-B73F-4CF2-9F75-6C19D2154BD3">
<ns0:Num>SEC. 5.</ns0:Num>
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Section 454.57.5 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_7BEE438B-4E44-4E1E-9D38-48CD59A80413">
<ns0:Num>454.57.5.</ns0:Num>
<ns0:LawSectionVersion id="id_CEF83333-4EF9-44B6-A68B-0819E32B1163">
<ns0:Content>
<html:p>Beginning on or before than January 1, 2028, the commission, in coordination with the Energy Commission and the Independent System Operator, shall make available on its internet website all nonconfidential input and output data used in the integrated resource planning and transmission planning processes.</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_8DA47416-877F-4843-96CE-1A4F21F57882">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B 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 XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
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</ns0:Bill>
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