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Measure AB 740
Authors Harabedian  
Coauthors: Archuleta   Stern  
Subject Virtual power plants: load shifting: integrated energy policy report.
Relating To relating to energy.
Title An act to add Section 25302.8 to, and to add Chapter 6.6 (commencing with Section 25560) to Division 15 of, the Public Resources Code, relating to energy.
Last Action Dt 2025-09-15
State Enrolled
Status Vetoed
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-10-03     Consideration of Governor's veto pending.
2025-10-03     Vetoed by Governor.
2025-09-23     Enrolled and presented to the Governor at 4 p.m.
2025-09-11     Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3299.).
2025-09-10     In Assembly. Concurrence in Senate amendments pending.
2025-09-10     Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2808.).
2025-09-08     Read second time. Ordered to third reading.
2025-09-04     Read third time and amended. Ordered to second reading.
2025-09-02     Read second time. Ordered to third reading.
2025-08-29     From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 29).
2025-08-29     Read second time and amended. Ordered returned to second reading.
2025-08-25     In committee: Referred to suspense file.
2025-08-18     From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
2025-08-18     (Ayes 27. Noes 0. Page 2171.)
2025-08-07     In committee: Hearing postponed by committee.
2025-07-16     From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (July 15). Re-referred to Com. on APPR.
2025-06-11     Referred to Com. on E., U & C.
2025-06-03     In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-02     Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1850.)
2025-05-27     Read second time. Ordered to third reading.
2025-05-23     From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-14     In committee: Set, first hearing. Referred to suspense file.
2025-04-29     Re-referred to Com. on APPR.
2025-04-28     Read second time and amended.
2025-04-24     From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 23).
2025-04-02     In committee: Hearing postponed by committee.
2025-03-13     Re-referred to Com. on U. & E.
2025-03-12     From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
2025-03-03     Referred to Com. on U. & E.
2025-02-19     From printer. May be heard in committee March 21.
2025-02-18     Read first time. To print.
Keywords
Tags
Versions
Enrolled     2025-09-15
Amended Senate     2025-09-04
Amended Senate     2025-08-29
Amended Senate     2025-08-18
Amended Assembly     2025-04-28
Amended Assembly     2025-03-12
Introduced     2025-02-18
Last Version Text
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Harabedian</ns0:AuthorText>
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		<ns0:Title>An act to add Section 25302.8 to, and to add Chapter 6.6 (commencing with Section 25560) to Division 15 of, the Public Resources Code, relating to energy. </ns0:Title>
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			<ns0:Subject>Virtual power plants: load shifting: integrated energy policy report.</ns0:Subject>
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			<html:p>Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state.</html:p>
			<html:p>This bill would require the Energy Commission, in the next update to the biennial integrated energy policy report after January 1, 2027, and subject to available funding, to adopt a virtual power plant deployment plan. The bill would require the Energy Commission, in developing the plan, to take certain actions, and would
			 require that the plan meet specified requirements.</html:p>
			<html:p>Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter.</html:p>
			<html:p>This bill would require each electrical corporation to annually report to the Energy Commission its contribution towards meeting that load-shift goal.</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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				Section 25302.8 is added to the 
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				, to read:
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							<html:p>Each electrical corporation, as defined in Section 218 of the Public Utilities Code, shall annually report to the commission its contribution towards meeting the load-shift goal adopted pursuant to Section 25302.7.</html:p>
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				Chapter 6.6 (commencing with Section 25560) is added to Division 15 of the 
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						<ns0:LawHeadingText>Virtual Power Plants</ns0:LawHeadingText>
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								<html:p>For purposes of this chapter, all of the following definitions apply:</html:p>
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									(a)
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									“Smart” means a device or appliance that adjusts its energy use, is internet connected, is able to be controlled remotely, with explicit customer consent, by the consumer, the manufacturer, or an aggregator, provides information about its operating status, and enables the customer to enable or disable the smart features.
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									(b)
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									“Virtual power plant” means an actively coordinated aggregation of behind-the-meter distributed energy resources, including, but not limited to, electric vehicles and chargers, electric water heaters, smart thermostats, smart plugs,
						  smart buildings and their controls, battery storage systems like those installed with rooftop solar systems, and flexible commercial and industrial loads, that are dispatchable and can balance electricity demand and supply and reduce or shift demand.
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									(a)
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									In the next update to the biennial integrated energy policy report adopted pursuant to Section 25302 after January 1, 2027, and subject to available funding, the commission shall adopt a virtual power plant deployment plan.
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									(b)
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									In developing the plan adopted pursuant to subdivision (a), the commission shall do all of the following:
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									(1)
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									Consult and collaborate with the Public Utilities Commission, the Independent System Operator, and the disadvantaged community advisory group established pursuant to Section 400 of the Public Utilities Code.
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									(2)
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									Hold no less than two public workshops to solicit public input on the development of the plan.
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									(3)
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									Convene stakeholder sessions to solicit input from organizations representing industry, the affected workforce, ratepayer organizations, consumer organizations, load-serving entities, as defined in Section 380 of the Public Utilities Code, and local publicly owned electric utilities, as defined in Section 224.3 of the Public Utilities Code.
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									(c)
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									The commission shall ensure that the plan adopted pursuant
						  to subdivision (a) does all of the following:
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									(1)
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									Identifies the resources, policies, and timelines needed for virtual power plants to help meet the statewide load-shift goals adopted pursuant to Section 25302.7.
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									(2)
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									(A)
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									Identifies the barriers and opportunities for virtual power plant resources to qualify for resource adequacy.
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									(B)
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									Includes an assessment of virtual power plant resources that are currently eligible for resource adequacy pursuant to Section 380 of the Public Utilities Code.
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									(C)
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									Includes recommendations to resolve the barriers identified in subparagraph (A).
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									(D)
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									Estimates the cost of virtual power plants relative to alternative sources of resource adequacy qualifying capacity.
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									(E)
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									Assesses the data needs for state agencies and the Independent System Operator to fully value virtual power plant resources for resource adequacy.
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									(3)
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									(A)
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									Identifies the barriers and opportunities for virtual power plant resources to act as load-modifying resources that reduce a load-serving entity’s resource adequacy obligations.
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									(B)
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									Includes recommendations to resolve the barriers identified in subparagraph (A).
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									(C)
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									Estimates the cost to the load-serving entity of load-modifying virtual power plants
						  relative to the cost of other load-modifying resources to reduce a load-serving entity’s resource adequacy obligations.
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									(D)
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									Identifies which virtual power plant resources are the most cost effective as load-modifying resources.
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									(E)
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									Assesses the data needs for state agencies and the Independent System Operator to fully account for virtual power plant resources to reduce a load-serving entity’s resource adequacy obligations.
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									(4)
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									Assesses the barriers to customer energy data access limiting the operation and value of virtual power plants and recommended ways to address them.
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									(5)
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									(A)
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									Evaluates how the operational configuration of virtual power
						  plants can be optimized to support specific objectives, including maximizing cost savings to participating and nonparticipating ratepayers, and maximizing electrical grid system benefits, such as reduction of greenhouse gas emissions and easing of local congestion.
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									(B)
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									Provides recommendations on how to align incentive structures that maximize both electrical grid system benefits and cost savings to participating and nonparticipating ratepayers.
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									(C)
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									Ensures the recommendations of subparagraph (B) do not result in increased costs for any nonparticipating ratepayers as a result of virtual power plant deployment.
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Last Version Text Digest Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state. This bill would require the Energy Commission, in the next update to the biennial integrated energy policy report after January 1, 2027, and subject to available funding, to adopt a virtual power plant deployment plan. The bill would require the Energy Commission, in developing the plan, to take certain actions, and would require that the plan meet specified requirements. Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter. This bill would require each electrical corporation to annually report to the Energy Commission its contribution towards meeting that load-shift goal.