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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Schultz</ns0:AuthorText>
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<ns0:Name>Schultz</ns0:Name>
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<ns0:Title> An act to add Section 25403.6 to the Public Resources Code, relating to electricity. </ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
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<ns0:Subject>Energy: electrical demand forecasts.</ns0:Subject>
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<html:p>Existing law requires the State Energy Resources Conservation and Development Commission, at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law authorizes the commission to require the submission of demand forecasts from electrical utilities, among other entities, to perform its assessments and forecasts. Existing law requires the commission to adopt an integrated energy policy report every 2 years.</html:p>
<html:p>This bill would require the commission, on or before December 1, 2026, and in consultation with load-serving entities and resource aggregators, to define and publicize methodologies for load modification protocols by which a load-serving entity may reduce or modify its electrical demand forecast upon aggregated
system operation of behind-the-meter load modifying technologies and programmatic measures deemed to reliably reduce or modify the load-serving entity’s electrical demand, as specified.</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_D88E4C9E-919C-401D-B899-0F3CA3105CD9">
<ns0:Num>SECTION 1.</ns0:Num>
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<html:p>
(a)
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The Legislature finds and declares all of the following:
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<html:p>
(1)
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Decarbonization of California’s economy will require improved alignment between the operation of a renewable and greenhouse gas emission-free generation supply portfolio and increased demand flexibility.
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(2)
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Reducing California’s reliance on generation from fossil fuels to maintain grid reliability will require incorporating flexible and automated demand management capabilities into the state’s reliability planning and market operations.
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(3)
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Historically, the State Energy Resources Conservation and Development Commission has included the load impact of demand-side management programs in the state’s electricity demand forecast for reliability planning purposes. This process, however, does not account for the ability of commercially available demand management tools to provide dispatchable, programmable, and automated load shifts in response to electrical system needs, thereby limiting the ability for these resources to fully support reliability planning through commercial operations to mitigate the consequences of extreme weather events and wholesale market volatility.
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(4)
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In recent years, the Legislature has provided the State Energy Resources Conservation and Development Commission
with authority to set load management standards to increase demand flexibility on the grid, develop plans and programs to support investments in clean energy resources, and increase electrical reliability through demand-side approaches. These policy and budgetary tools, in combination with the State Energy Resources Conservation and Development Commission’s responsibility to forecast electrical demand, can be synergized to support the integration of demand flexibility into the state’s reliability planning and wholesale capacity market.
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<html:p>
(5)
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Successful commercialization of demand flexibility market products or services will require these resources to perform, so that the intended demand reduction or load shift can be relied on with a high degree of confidence by grid operators and electricity market
participants alike.
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<html:p>
(b)
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It is the intent of the Legislature to require the State Energy Resources Conservation and Development Commission to implement appropriate transparency measures regarding the methodologies for load modification protocols by which a load-serving entity may reduce or modify its electrical demand forecast to improve grid reliability and affordability.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 25403.6 is added to the
<ns0:DocName>Public Resources Code</ns0:DocName>
, to read:
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<ns0:Num>25403.6.</ns0:Num>
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(a)
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(1)
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On or before December 1, 2026, the commission, in consultation with load-serving entities and resource aggregators, shall define and publicize methodologies for load modification protocols by which a load-serving entity may reduce or modify its electrical demand forecast submitted pursuant to Section 25301 upon aggregated system operation of behind-the-meter load modifying technologies and programmatic measures deemed by the commission, Public Utilities Commission, and Independent System Operator to reliably reduce or modify the load-serving entity’s electrical demand.
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(2)
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The commission may use available funding appropriated by the
Legislature to test a variety of technological and programmatic approaches in partnership with interested load-serving entities and behind-the-meter distributed energy resource aggregators to facilitate a high degree of confidence for flexible demand performance.
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(b)
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For purposes of this section, “load-serving entity” has the same meaning as defined in Section 380 of the Public Utilities Code.
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