SB 699,
as amended, Hill. Electricity: electrical corporations:begin delete Cleanend deletebegin insert cleanend insert distributed energy resources.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Actbegin insert requires each public utility to furnish reports to the commission at the time and in the form as the commission may require and in those reports the utility is required to specifically answer all questions propounded by the commission. The act authorizes the commission to require any public utility to file periodic reports concerning any matter about which the commission is authorized by any law to inquire or to keep itself informed, or which it is required to enforce. The actend insert requires each electrical corporation, as a part of its distribution planning process, to consider specified nonutility owned distributed energy resources as an alternative to investments in its distribution system to ensure reliable electric services at the lowest possible costs.
This bill would requirebegin insert an electrical corporation to annually report to the commission capital expenditures included in the distribution category of the electrical corporation’s ratebase for each project. The bill would require an electrical corporation to report all interconnection costs charged to the customer for each interconnection agreement to interconnect distributed energy resources. The bill would requireend insert the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, to direct an electrical corporationbegin delete to, among other things, determine the location on the distribution grid where clean distributed energy resources, as defined, will provide optimal benefits andend delete
tobegin insert
consider andend insert procure clean distributed energy resourcesbegin insert, as defined,end insert to meet distribution grid needs as a part of the electrical corporation’s transmission and distribution grid infrastructure investmentsbegin insert and to consider and procure clean distributed energy resources to meet the electrical corporation’s needs as part of any procurement and planning process at the commission, the State Energy Resources Conservation and Development Commission, or the Independent System Operatorend insert.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime.
Because the provisions of this bill are within the act and require action by the Public Utilities Commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.
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:
The Legislature finds and declares all of the
2following:
3(a) Clean distributed energy resources, including distributed
4generation, can reduce emissions of greenhouse gases, reduce
5criteria air pollution, reduce water consumption, increase grid
P3 1reliability, localize power generation, and decrease reliance on
2large, polluting generation facilities.
3(b) The Legislature has established programs and policies to
4support the commercialization and growth of clean distributed
5generation technologies, including the California Solar Initiative,
6combined heat and power feed-in tariffs pursuant to
the Waste
7Heat and Carbon Emissions Reduction Act, the self-generation
8incentive program, and the renewable market adjusting tariff.
9(c) A central impediment to increased proliferation of distributed
10energy resources is a lack of transparency in current utility
11infrastructure investments in the distribution grid and in the costs
12and process associated with interconnection to the utility grid,
13costs that are ultimately borne by ratepayers.
14(d) Transparency on what distribution grid investments have
15been made will allow policymakers and stakeholders to better
16understand and evaluate what types of clean distributed energy
17resources may be more cost effective and better serve the grid and
18ratepayers for future investments.
Section 353.17 is added to the Public Utilities Code,
20to read:
(a) The commission, in consultation with the Energy
22Commission, shallbegin delete direct each electrical corporation toend delete do all of
23the following:
24(1) Determine the location on the distribution grid where clean
25distributed energy resources will provide optimal benefits.
26(2) Quantify the benefits of those resources.
end delete
27(3) Report to the commission the costs and locations of current
28investments in the distribution grid, including relevance to the
29interconnection and management of clean distributed energy
30resources.
31(4) Procure
end delete
32begin insert(1)end insertbegin insert end insertbegin insertDirect each electrical corporation to consider and procureend insert
33 clean distributed energy resources to meet
distribution grid needs
34as a part of the electrical corporation’s transmission and distribution
35grid infrastructure investments.
36(2) Direct each electrical corporation to consider and procure
37clean distributed energy resources to meet the electrical
38corporation’s needs as part of any procurement and planning
39process at the commission, the Energy Commission, or the
40Independent System Operator.
P4 1(b) For the purposes of this section, “clean distributed energy
2resources” means an electric generation technology that meets
3both of the following requirements:
4(1) Reduces greenhouse gas emissions as determined by the
5State Air Resources Board greenhouse gas
emissions factor
6pursuant to the California Global Warming Solutions Act of 2006
7(Division 25.5 (commencing with Section 38500) of the Health
8and Safety Code).
9(2) Complies with emission standards and guidance adopted by
10the State Air Resources Board pursuant to Sections 41514.9 and
1141514.10 of the Health and Safety Code.
12(3) Is interconnected to the electrical corporation’s distribution
13grid.
begin insertSection 586 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert, to
15read:end insert
(a) For capital expenditures included in the distribution
17category of the electrical corporation’s ratebase, the electrical
18corporation shall annually report expenditures for each project,
19including all of the following:
20(1) The total dollar amount.
21(2) The type of equipment installed.
22(3) The purpose of the expenditure.
23(b) The report shall also include the rationale for the deployment
24of distributed energy resources, both existing and projected,
25factored into its distribution planning assumptions and
26expenditures. This
shall include both a summary of the
27methodologies used to track and anticipate distributed energy
28system deployments and how that information is then used for
29distribution planning.
30(c) For each interconnection agreement executed with customers
31that interconnect distributed energy resources, the electrical
32corporation shall report all interconnection costs charged to the
33customer.
No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution because
37the only costs that may be incurred by a local agency or school
38district will be incurred because this act creates a new crime or
39infraction, eliminates a crime or infraction, or changes the penalty
40for a crime or infraction, within the meaning of Section 17556 of
P5 1the Government Code, or changes the definition of a crime within
2the meaning of Section 6 of Article XIII B of the California
3Constitution.
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