Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__226699INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2266</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Schultz</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Schultz</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add Section 380.9 to the Public Utilities Code, relating to electricity. </ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Electricity: load-serving entities.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law requires the Public Utilities Commission to set resource adequacy and resource procurement obligations for load-serving entities, which include electrical corporations, electric service providers, and community choice aggregators. Existing law requires various compliance reporting for load-serving entities.</html:p>
<html:p>This bill would require the commission, on and after January 1, 2030, when setting certain resource adequacy and resource procurement obligations for load-serving entities, to use the same capacity valuation method to assess the reliability contribution of each resource type, as specified. The bill would require the commission, on or before January 1, 2030, to initiate a process to consolidate certain compliance reporting for load-serving entities, as specified.</html:p>
<html:p>Existing law establishes
the Independent System Operator as a nonprofit, public benefit corporation and requires the Independent System Operator, among other duties, to ensure the efficient use and reliable operation of the electrical transmission grid consistent with the achievement of planning and operating reserve criteria, as provided.</html:p>
<html:p>This bill would require the commission, if the Independent System Operator exercises its backstop procurement authority to ensure sufficient resources to operate the electrical grid, to include in a specified annual report an explanation of why the need for the backstop procurement arose, as provided.</html:p>
<html:p>Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because the provisions of this bill would be a part of the act and a violation of a commission action implementing
certain provisions of the bill would be a crime, the bill would impose a state-mandated local program.</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>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_245A31A0-770E-4155-9725-3A8750250D99">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature hereby finds and declares all of the following
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The success of California’s clean energy transition depends on continued coordination and collaboration between multiple state agencies and the Independent System Operator to meet the state’s clean energy and greenhouse gas reduction targets.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Numerous policies established through successive legislative sessions created multiple regulatory programs aimed at decarbonizing the electrical grid by addressing reliability, renewable energy development, renewable integration, and midterm and long-term reliability.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Laws affecting California’s effort to decarbonize its electrical grid and maintain grid reliability include, among others, the California Renewables Portfolio Standard Program established pursuant to Senate Bill 1078 of the 2001–02 Regular Session (Chapter 516 of the Statutes of 2002), the provisions relating to resource adequacy established pursuant to Assembly Bill 380 of the 2005–06 Regular Session (Chapter 367 of the Statutes of 2005), and the Clean Energy and Pollution Reduction Act of 2015 enacted through Senate Bill 350 of the 2015–16 Regular Session (Chapter 547 of the Statutes of 2015).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Following the electrical grid emergency events in the years 2020 and 2022, to protect the health and safety of California residents and to maintain the critical functions of the state’s economy, Governor Newsom signed into law Assembly Bill 205 of the 2021–22 Regular Session (Chapter 61 of the Statutes of 2022), which, among various
energy affordability measures, created the Strategic Reliability Reserve to secure additional electricity supply.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The State Energy Resources Conservation and Development Commission, the Public Utilities Commission, and the Independent System Operator, under Governor Newsom, established a memorandum of understanding in December 2022 to align energy planning processes and agree on a single recommended demand forecast to guide transmission planning and resource procurement cycles.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Following the establishment of the 2022 interagency memorandum of understanding on transmission and resource planning, joint agency coordination resulted in significant regulatory reforms to improve the transmission interconnection process and updates to the state’s resource adequacy program to ensure sufficient resources are available to meet critical hour demand levels of each month.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Assembly Bill 1373 of the 2023–24 Regular Session (Chapter 367 of the Statutes of 2023) affirmed the authority of the Public Utilities Commission to order new resources procurement by load-serving entities to ensure midterm and long-term reliability. Assembly Bill 2368 of the 2023–24 Regular Session (Chapter 713 of the Statutes of 2024) further required the Public Utilities Commission and the Independent System Operator to align on a single reliability standard to guide resource adequacy planning across multiple regulatory programs.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Assembly Bill 825 of the 2025–26 Regular Session (Chapter 116 of the Statute of 2025) further authorized the creation of a regional energy market to improve reliability and reduce costs. Ongoing inter-agency efforts to connect the seams between participating jurisdictions will increase the ratepayer benefits of a regional energy market.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
While policymaking by the state is inherently iterative, layers of regulatory program development created in a successive manner over the years has resulted in parallel processes, multiple compliance structures, and different resource valuation methods used in multiple regulatory forums for transitioning the same electrical grid toward a carbon neutral system. The resulting regulatory complexity, multiple compliance structures, and inconsistencies in resource valuation create inefficiencies in meeting California clean energy goals, increase the legal burden of public participation, increase the risk of costly backstop resource procurement, and exacerbate expensive reliance on mechanisms such as the strategic reliability reserve.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
An efficient governance structure with a well-organized compliance system will improve the efficacy of California’s clean energy programs and
position California ratepayers to harness the most value from regional energy market participation.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
It is the intent of the Legislature to do all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Ensure alignment of resource valuation methods across electricity supply procurement programs to improve efficiency in regulatory implementation processes to meet the short-term, midterm, and long-term reliability needs of the state.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Improve information and transparency by consolidating compliance reporting requirements to facilitate improved stakeholder participation and regulatory decision-making.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Minimize the state’s reliance on backstop procurement mechanisms through continuously improving inter-agency coordination to position the state for
effective participation in a regional energy market.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
It is not the intent of the Legislature to prescribe any specific technical method or compliance structure, but to ensure consistency and close alignment between multiple programs affecting ratepayer cost.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_EA88FC25-E9B7-419C-A976-BA0C2204E48D">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'380.9'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 380.9 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
,
<ns0:Positioning>to immediately follow Section 380.5</ns0:Positioning>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_C65E022E-D1B5-4F3D-BB03-DDD82CF77EC4">
<ns0:Num>380.9.</ns0:Num>
<ns0:LawSectionVersion id="id_6632F6B0-7E23-438D-975E-AC827CB05CF1">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On and after January 1, 2030, the commission shall, when setting resource adequacy and resource procurement obligations for load-serving entities pursuant to Sections 380 and 454.52, use the same capacity valuation method to assess the reliability contribution of each resource type to ensure consistent short-term, midterm, and long-term reliability outlooks.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before January 1, 2030, the commission shall initiate a process to consolidate compliance reporting for load-serving entities for programs established pursuant to Sections 380, 399.15, and 454.52 into a single compliance reporting process.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any compliance reporting requirement issued by
the commission shall be finalized for a minimum of 20 calendar days before a compliance report submission by a load-serving entity to provide sufficient time to ensure data accuracy and consistency.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the Independent System Operator exercises its backstop procurement authority to ensure sufficient resources to operate the electrical grid in a calendar year, the commission shall include in its public report pursuant to Section 380 for that calendar year an explanation of whether the backstop procurement need arose due to any noncompliance by load-serving entities or due to differences in methodology between the commission and the Independent System Operator in assessing the reliability contribution of different resource types.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “load-serving entity” has the same meaning as defined in Section 380.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_A810F20A-AC87-43AC-8B49-EF7C6BCD0DE9">
<ns0:Num>SEC. 3.</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>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>