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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ellis</ns0:AuthorText>
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<ns0:Name>Ellis</ns0:Name>
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<ns0:Title> An act to amend Section 454.52 of the Public Utilities Code, relating to electricity. </ns0:Title>
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<ns0:Subject>Electricity: integrated resource plans: Department of Water Resources: procurement. </ns0:Subject>
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<html:p>Existing law requires the Public Utilities Commission to adopt a process for each load-serving entity, as defined, to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity take specified actions, as specified. Existing law requires the commission to determine if there is a need for the procurement of eligible energy resources, as described, and requires the commission to specify the eligible energy resources that should be procured to meet that need, and authorizes the commission, within 6 months of making that determination, to request the Department of Water Resources to procure those specified resources that meet the portfolio of resources, as specified. Existing law authorizes the department to procure those resources pursuant to that request only before January 1, 2035, as provided. Existing law authorizes the
department to procure resources from a pump hydroelectric facility pursuant to these provisions if the pump hydroelectric facility does not exceed 500 megawatts and was directly appropriated funding by the state before January 1, 2023.</html:p>
<html:p>This bill would additionally authorize the department to procure resources from a pump hydroelectric facility pursuant to the above-described provisions if the pump hydroelectric facility is exempt from Federal Energy Regulatory Commission licensing.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</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:Num>454.52.</ns0:Num>
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<html:p>
(a)
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(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:
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<html:p>
(A)
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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.
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<html:p>
(B)
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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.
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<html:p>
(D)
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Minimize impacts on ratepayers’ bills.
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<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.
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<html:p>
(iii)
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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.
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(F)
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Comply with paragraph (1) of subdivision (b) of Section 399.13.
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<html:p>
(G)
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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.
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<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)
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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)
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(i)
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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)
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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>
(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)
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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)
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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)
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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 purposes 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, or is exempt from Federal Energy Regulatory Commission licensing.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of this section, 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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