Amended in Senate June 30, 2014

Amended in Assembly May 6, 2014

Amended in Assembly April 22, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1935


Introduced by Assembly Member Campos

February 19, 2014


An act to amend Section 321.7 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 1935, as amended, Campos. Electricity: clean distributed energy resources.

Existing law requires the Public Utilities Commission, on a biennial basis and in consultation with the Independent System Operator and the State Energy Resources Conservation and Development Commission, to study and submit a report to the Legislature and the Governor on the impacts of distributed energy generation on the state’s distribution and transmission grid.

This bill would instead require the Public Utilities Commission, on a biennial basis, to study and submit a report to the Legislature and the Governor on the impacts of distributed generation, including clean distributed energy resources, as defined, on the state’s distribution and transmission grid.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 321.7 of the Public Utilities Code is
2amended to read:

3

321.7.  

(a) On or before January 1st of every other year, the
4commission, in consultation with the Independent System Operator
5and the Energy Commission, shall study, and submit a report to
6the Legislature and thebegin delete Governor, onend deletebegin insert Governor on,end insert the impacts of
7distributed generation, including clean distributed energy resources,
8on the state’s distribution and transmission grid.

9(b) For the purposes of this section, “clean distributed energy
10resource” means any of the following:

11(1) A clean energy generating technology that meets all of the
12following criteria:

13(A) Produces electricity, or electricity and useful heat.

14(B) Has a greenhouse gas emissions factor, including, when
15applicable, credit for waste heat recovery and savings on
16transmission and distribution losses, that is less than or equal to
17an emissions factor determined by the State Air Resources Board
18that represents the emissions of greenhouse gases that are displaced
19by the electricity generated by the distributed energy resource.

20(C) Has an oxide of nitrogen (NOx) emissions rate, including,
21when applicable, credit for waste heat recovery, that is less than
22or equal to 0.07 pounds per megawatthour, or a lower NOx
23emissions rate that the State Air Resources Board determines
24reflects the best performance achieved in practice by existing
25electrical generation technologies pursuant to Section 41514.9 of
26the Health and Safety Code.

27(D) Has a nameplate rated generation capacity of 20 or less
28megawatts.

29(2) An eligible renewable energy resource, as defined in Section
30399.12, that has a nameplate generation capacity of 20 or less
31megawatts.

32(3) Demand response that provides reliability benefits to the
33system, complies with local, state, and federal air emission
34regulations, reduces emissions of greenhouse gases, and supports
35the state’s goal of increasing the use of eligible renewable energy
36resources pursuant to the California Renewables Portfolio Standard
37Program (Article 16 (commencing with Section 399.11) of Chapter
382.3).

P3    1(4) An energy storage technology that stores energy from a
2technology or resource specified in paragraph (1) or (2).

3(c) The study shall evaluate all of the following:

4(1) Reliability and transmission issues related to connecting
5clean distributed energy resources to the local distribution networks
6and regional electrical grid.

7(2) Issues related to electrical grid reliability and operation,
8including interconnection, and the position of federal and state
9regulators toward distributed energy accessibility.

10(3) The effect on overall electrical grid operation of various
11clean distributed energy resources.

12(4) Barriers affecting the connection of distributed energy to
13the state’s electrical grid.

14(5) Emerging technologies related to clean distributed energy
15resources interconnection.

16(6) Interconnection issues that may arise for the Independent
17System Operator and local distribution companies.

18(7) The effect on peak demand for electricity.

19(d) In addition, the commission shall specifically assess the
20impacts of the California Solar Initiative program, specified in
21Sectionbegin delete 2851 and Section 25783 of the Public Resources Code,end delete
22begin insert 2851,end insert the self-generation incentive program authorized by Section
23379.6, and the net energy metering pilot program authorized by
24Section 2827.9.

25(e) The report submitted to the Legislature pursuant to
26subdivision (a) shall be submitted in compliance with Section 9795
27of the Government Code.



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