BILL NUMBER: AB 1935	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2014
	AMENDED IN ASSEMBLY  MAY 6, 2014
	AMENDED IN ASSEMBLY  APRIL 22, 2014
	AMENDED IN ASSEMBLY  MARCH 28, 2014

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:

  SECTION 1.  Section 321.7 of the Public Utilities Code is amended
to read:
   321.7.  (a) On or before January 1st of every other year, the
commission, in consultation with the Independent System Operator and
the Energy Commission, shall study, and submit a report to the
Legislature and the  Governor, on   Governor on,
 the impacts of distributed generation, including clean
distributed energy resources, on the state's distribution and
transmission grid.
   (b) For the purposes of this section, "clean distributed energy
resource" means any of the following:
   (1) A clean energy generating technology that meets all of the
following criteria:
   (A) Produces electricity, or electricity and useful heat.
   (B) Has a greenhouse gas emissions factor, including, when
applicable, credit for waste heat recovery and savings on
transmission and distribution losses, that is less than or equal to
an emissions factor determined by the State Air Resources Board that
represents the emissions of greenhouse gases that are displaced by
the electricity generated by the distributed energy resource.
   (C) Has an oxide of nitrogen (NOx) emissions rate, including, when
applicable, credit for waste heat recovery, that is less than or
equal to 0.07 pounds per megawatthour, or a lower NOx emissions rate
that the State Air Resources Board determines reflects the best
performance achieved in practice by existing electrical generation
technologies pursuant to Section 41514.9 of the Health and Safety
Code.
   (D) Has a nameplate rated generation capacity of 20 or less
megawatts.
   (2) An eligible renewable energy resource, as defined in Section
399.12, that has a nameplate generation capacity of 20 or less
megawatts.
   (3) Demand response that provides reliability benefits to the
system, complies with local, state, and federal air emission
regulations, reduces emissions of greenhouse gases, and supports the
state's goal of increasing the use of eligible renewable energy
resources pursuant to the California Renewables Portfolio Standard
Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).

   (4) An energy storage technology that stores energy from a
technology or resource specified in paragraph (1) or (2).
   (c) The study shall evaluate all of the following:
   (1) Reliability and transmission issues related to connecting
clean distributed energy resources to the local distribution networks
and regional electrical grid.
   (2) Issues related to electrical grid reliability and operation,
including interconnection, and the position of federal and state
regulators toward distributed energy accessibility.
   (3) The effect on overall electrical grid operation of various
clean distributed energy resources.
   (4) Barriers affecting the connection of distributed energy to the
state's electrical grid.
   (5) Emerging technologies related to clean distributed energy
resources interconnection.
   (6) Interconnection issues that may arise for the Independent
System Operator and local distribution companies.
   (7) The effect on peak demand for electricity.
   (d) In addition, the commission shall specifically assess the
impacts of the California Solar Initiative program, specified in
Section  2851 and Section 25783 of the Public Resources Code,
  2851,  the self-generation incentive program
authorized by Section 379.6, and the net energy metering pilot
program authorized by Section 2827.9.
   (e) The report submitted to the Legislature pursuant to
subdivision (a) shall be submitted in compliance with Section 9795 of
the Government Code.