BILL NUMBER: SB 17 CHAPTERED
BILL TEXT
CHAPTER 327
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 4, 2009
PASSED THE ASSEMBLY SEPTEMBER 1, 2009
AMENDED IN ASSEMBLY JULY 8, 2009
AMENDED IN SENATE MAY 5, 2009
AMENDED IN SENATE APRIL 20, 2009
AMENDED IN SENATE APRIL 15, 2009
INTRODUCED BY Senator Padilla
(Coauthor: Senator Wiggins)
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, 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), 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. 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 the commission to report, by
January 1, 2011, and by January 1 of each year thereafter, to the
Governor and the Legislature on the commission's recommendations for
a smart grid, the plans and deployment of smart grid technologies by
the state's electrical corporations, and the costs and benefits to
ratepayers.
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.
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 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-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.
8361. For purposes of this chapter, "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.
8362. (a) By July 1, 2010, the commission, in consultation with
the Energy Commission, 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 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.
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) 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 a manner to
maximize the benefit and minimize the cost to ratepayers and to
achieve the benefits of smart grid technology. 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 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 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. By January 1, 2011, and by January 1 of each year
thereafter, the commission shall report to the Governor and the
Legislature on the commission's recommendations for a smart grid, the
plans and deployment of smart grid technologies by the state's
electrical corporations, and the costs and benefits to ratepayers.
8368. The commission may modify or adjust the requirements of
this chapter for any electrical corporation with fewer than 100,000
service connections, as individual circumstances merit.
8369. 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.