BILL NUMBER: SB 17 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 15, 2009
INTRODUCED BY Senator Padilla
DECEMBER 1, 2008
An act to add Chapter 4 (commencing with Section 8360) to Division
4.1 of the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 17, as amended, Padilla. Electricity: smart grid systems.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Under existing law, the governing board of a local
publicly owned electric utility, as defined, generally has authority
over the activities of the utility.
This bill would require the commission, by July 1, 2010, and in
consultation with the State Energy Resources Conservation and
Development Commission (Energy Commission) and
, the Independent System Operator (ISO), and other
key stakeholders, to determine the requirements for a smart
grid deployment plan consistent with the policies set forth in the
bill and federal law. The bill would require that the smart grid
improve overall efficiency, reliability, and cost-effectiveness of
electrical system operations, planning, and maintenance. The bill
would require each electrical corporation, by July 1, 2011, to
develop and submit a smart grid deployment plan to the commission for
approval and would authorize the commission to authorize an
electrical corporation to recover reasonable costs of deploying smart
grid technologies and services from ratepayers. The bill would
authorize the commission to consider and approve full or partial
recovery by an electrical corporation of its investments and
expenditures associated with the implementation of specified
preexisting smart grid development, deployment, and infrastructure
replacement plans. The bill would authorize a smart grid
deployment plan that is adopted to provide for deployment of smart
grid products, technologies, and services by entities other than
electrical corporations. The bill would authorize smart grid
technologies to be deployed in an incremental manner to maximize the
benefit to ratepayers and to achieve the benefits of smart grid
technology, would authorize the commission to modify or adjust the
bill's requirements for an electrical corporation with fewer than
100,000 service connections as individual circumstances merit, and
would require the commission , in consultation with the
Energy Commission, the ISO, and electrical corporations, at each step
of deployment, to evaluate the impact of deployment on major
initiatives and policies.
The bill would require a local publicly owned electric utility, as
defined, to develop by July 1, 2011, a smart grid deployment plan
consistent with the policies set forth in federal law. By placing
requirements upon local publicly owned electric utilities, the bill
would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 4 (commencing with Section 8360) is added to
Division 4.1 of the Public Utilities Code, to read:
CHAPTER 4. SMART GRID SYSTEMS
8360. It is the policy of the state to modernize the state's
electrical transmission and distribution system to maintain
reliable safe, reliable, efficient and secure
electrical service, with infrastructure that can meet future growth
in demand and achieve all of the following, which together
characterize a smart grid:
(a) Increased use of cost-effective digital information and
control technology to improve reliability, security, and efficiency
of the electric grid.
(b) Dynamic optimization of grid operations and resources,
including appropriate consideration for asset management and
utilization of related grid operations and resources, with
cost-effective full cyber security.
(c) Deployment and integration of cost-effective distributed
resources and generation, including renewable resources.
(d) Development and incorporation of cost-effective demand
response, demand-side resources, and energy-efficiency
energy-efficient resources.
(e) Deployment of cost-effective smart technologies, including
real time, automated, interactive technologies that optimize the
physical operation of appliances and consumer devices for metering,
communications concerning grid operations and status, and
distribution automation.
(f) Integration of cost-effective smart appliances and consumer
devices.
(g) Deployment and integration of cost-effective advanced
electricity storage and peak-shaving technologies, including plug-in
electric and hybrid electric vehicles, and thermal-storage
air-conditioning.
(h) Provide consumers with timely information and control options.
(i) Develop standards for communication and interoperability of
appliances and equipment connected to the electric grid, including
the infrastructure serving the grid.
(j) Identification and lowering of unreasonable or unnecessary
barriers to adoption of smart grid technologies, practices, and
services.
(k) Generation of electricity by fuel cells.
8361. For purposes of this chapter, the following terms have the
following meanings:
(a) "ISO" means the Independent System Operator operating pursuant
to Article 3 (commencing with Section 345) of Chapter 2.3 of Part 1
of Division 1.
(b) "Energy Commission" means the State Energy Resources
Conservation and Development Commission.
8362. (a) By July 1, 2010, the commission, in consultation with
the Energy Commission and the ISO, , the ISO,
and other key stakeholders shall determine the requirements
for a smart grid deployment plan consistent with Section 8360 and
federal law, including the provisions of Title XIII (commencing with
Section 1301) of the Energy Independence and Security Act of 2007
(Public Law 110-140). The commission shall institute a rulemaking or
expand the scope of an existing rulemaking to adopt standards and
protocols to ensure functionality and interoperability developed by
public and private entities, including, but not limited to, the
National Institute of Standards and Technology, Gridwise Architecture
Council, the International Electrical and Electronics Engineers, and
the National Electric Reliability Organization recognized by the
Federal Electric Reliability Energy
Regulatory Commission. An adopted smart grid deployment plan
may provide for deployment of cost-effective smart grid products,
technologies, and services by entities other than electrical
corporations. The smart grid technologies and services shall improve
overall efficiency, reliability, and cost-effectiveness of electrical
system operations, planning, and maintenance.
(b) This section does not require or authorize the commission to
delay action on an application by an electrical corporation that is
submitted prior to the commission determining the requirements for a
smart grid deployment plan. The commission shall ensure that the
requirements of the smart grid deployment plan do not affect the
existing smart grid application, development, deployment,
and infrastructure replacement plans of an electrical corporation on
or before the date the requirements become effective regardless of
the timelines for the development, deployment, and replacement.
(c) The commission may consider and approve full or partial
recovery by an electrical corporation of its investments and
expenditures associated with the implementation of its smart grid
development, deployment, and infrastructure replacement plans that
are in existence prior to the commission determining the requirements
for a smart grid deployment plan if the commission finds that the
investments and expenditures are reasonable.
8363. This chapter shall be implemented in a manner that does not
compromise customer or worker safety or the integrity or reliability
of the electrical transmission and distribution system in this
state.
8364. (a) By July 1, 2011, each electrical corporation shall
develop and submit a smart grid deployment plan to the commission for
approval.
(b) The commission may authorize an electrical corporation to
recover reasonable costs of deploying smart grid technologies and
services from ratepayers. Costs may include capital investment,
including a reasonable rate of return on the capital expenditures,
operating expenditures, and other reasonable costs of the electrical
corporation made for the deployment of the qualified smart grid
system. The commission may modify or adjust the requirements of this
chapter for an electrical corporation with fewer than 100,000 service
connections, as individual circumstances merit.
(c) This section does not require or authorize the commission to
delay action on an application by an electrical corporation that is
submitted prior to the commission's approval of the electrical
corporation's timely filed smart grid deployment plan.
8366. Smart grid technology may be deployed in an
incremental a manner to maximize the benefit
and minimize the cost to ratepayers and to achieve the
benefits of smart grid technology. At each step of deployment, the
commission , in consultation with the Energy Commission,
the ISO, and electrical corporations, shall evaluate the impact of
deployment on major initiatives and policies including:
(a) Implementation of new advanced metering initiatives.
(b) Achievement of the renewables portfolio standard program
requirements and the need to operate the smart grid of the future
with a substantial increased percentage of electricity generated by
eligible renewable energy resources.
(c) Achievement of state goals for reducing emissions of
greenhouse gases reduction goals as set forth in
the California Global Warming Solutions Act of 2006 and
other state directives.
(d) Achievement of the energy efficiency and demand response goals
as required by Sections 454.5 and 454.55 and other state directives.
(e) Modernizing the aging utility grid infrastructure.
(f) Meeting the future energy growth needs of the state with new
and innovative technologies and methods that utilize the existing
assets more efficiently, result in less environmental
a less environmentally adverse net impact on the
state, meet stringent costs versus benefit assessments, and provide
the ratepayers with new options in meeting their individual energy
needs.
(g) Implementation of technology to improve worker safety,
protection, and productivity.
8367. Each local publicly owned electric utility with more than
100,000 service connections, shall, by July 1, 2011, develop a smart
grid deployment plan, that is consistent with federal law, including
the provisions of Title XIII (commencing with Section 1301) of the
Energy Independence and Security Act of 2007 (Public Law 110-140).
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.