BILL ANALYSIS
SB 17
Page 1
SENATE THIRD READING
SB 17 (Padilla)
As Amended July 8, 2009
Majority vote
SENATE VOTE :38-0
UTILITIES & COMMERCE 14-0
APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Duvall, Tom |Ayes:|De Leon, Conway, Ammiano, |
| |Berryhill, Carter, Fong, | | |
| |Fuller, Furutani, | |Charles Calderon, Coto, |
| |Huffman, Krekorian, | |Davis, Fuentes, Hall, |
| |Skinner, Fletcher, | |Harkey, Miller, Nielsen, |
| |Swanson, Torrico, | |John A. Perez. Skinner, |
| |Villines | |Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Hill |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the California Public Utilities Commission
(PUC), in consultation with other state agencies and key
stakeholders, to determine the requirements for a smart grid
deployment plan and requires the utilities to submit smart grid
plans to PUC. Specifically, this bill:
1)Requires PUC, in consultation with the California Energy
Commission (CEC), the California Independent System Operator
(CAISO) and other key stakeholders, to determine the
requirements for a smart grid deployment plan and adopt
standards and protocols to ensure functionality and
interoperability developed by public and private entities, by
July 1, 2010.
2)Requires each electrical corporation to develop and submit a
smart grid deployment plan to PUC for approval by July 1,
2011.
3)Requires PUC, in consultation with CEC, CAISO, and electrical
corporations, to evaluate the impact of smart grid technology
deployment on major initiatives and policies.
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4)Requires PUC to annually report to the Governor and the
Legislature on PUC's recommendations for a smart grid,
including the costs and benefits to ratepayers.
5)Requires each publicly owned electric utility with more than
100,000 service connections to develop a smart grid deployment
plan, by January 1, 2011.
6)Permits the PUC to modify or adjust the requirements for any
electrical corporation with fewer than 100,000 service
connections as individual circumstances merit.
FISCAL EFFECT :
1)Absorbable costs to PUC, as the commission indicates it has
already commenced a proceeding on this issue.
2)The CEC will incur $200,000 annually for two positions for
ongoing consultation with PUC on the impact of deploying smart
grid technology on related programs and policies. [Energy
Resources Programs Account].
3)Any costs to local publicly owned utilities to adopt smart
grid plans will be recovered in rates charges to utility
customers.
COMMENTS : Smart grid technology is two-way communication and
is intended to improve the efficiency, reliability and safety of
power delivery and use. To truly be smart, the grid needs
ancillary components to fully derive the benefits of the
investment. For example, for a smart grid to be able to provide
real-time price information, the grid must be coupled with smart
meters, smart appliances, smart thermostats, and/or plug-in
hybrid vehicles, or other customer-funded "add-ons." This bill
requires PUC to identify the protocols that define what the
smart grid will be for California and provide direction on its
development and when it will be operational.
The federal Energy Independence and Security Act of 2007
requires the National Institute of Standards and Technology to
be the lead agency to develop standards and protocols for the
smart grid. It creates a research, development, and
demonstration program for smart grid technologies at the
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Department of Energy, provides federal matching funds for
portions of qualified smart grid investments.
The federal American Reinvestment and Recovery Act of 2009
(ARRA) authorizes the Department of Energy to award $4 billion
in grants ranging from $500,000 to $20 million for smart grid
technology deployments and grants of $100,000 to $5 million for
the deployment of grid monitoring devices.
PUC has a rulemaking underway to consider policies for
California's IOUs to develop a smarter electric grid in the
state. The proceeding will consider setting policies, standards
and protocols to guide the development of a smart grid system
and facilitate integration of new technologies such as
distributed generation, storage, demand-side technologies, and
electric vehicles.
CEC funded a smart grid research project under the Public
Interest Energy Research program. The research identified new
and emerging technologies that would impact a smart grid,
concerns about ensuring incompatible systems and/or large
capital investments with short-term benefits, and the need to
foster open access, competition and commercial growth of
cost-effective, new technologies. Preliminary research shows
the state could play a key role in defining the smart grid of
the future for California and if left alone, many systems most
likely will not be compatible. Future smart grid research
planned by CEC includes assessing smart grid technologies and
functional areas through micro-grid demonstration projects.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0002671