BILL ANALYSIS Ó AB 2861 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2861 (Ting) - As Amended April 27, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes the California Public Utilities Commission (PUC) to establish an expedited distribution grid interconnection dispute resolution process to resolve disputes within 60 days, unless it determines more time is needed. This bill specifies the elements to be included in in the dispute resolution process and requires the PUC to establish a technical advisory panel, a review panel, and a public process for each dispute. AB 2861 Page 2 FISCAL EFFECT: If the PUC opted to establish the expedited dispute process, it would likely require an additional $550,000, seven staff positions and $300,000 in contracts. (PUC Utilities Fund.) COMMENTS: 1)Purpose. According to the author, this bill expedites the process of connecting more energy storage to a utility's electric grid, which in turn means more renewable energy can be obtained. 2)Distribution Grid Interconnection Disputes. Investor-owned utilities (IOUs) own the distribution grid, that is, the utility lines that serve local areas. The interconnection is the physical connection between a generator and the grid. Disputes arise when the utility who owns, manages and maintains the grid won't connect generation projects. A typical dispute occurs when the utility requires system improvements for safety purposes and the generator may object to some or all of the costs of the improvements. The PUC currently has an Alternative Dispute Resolution (ADR) process in its interconnection rules. The process first provides a structure for bilateral negotiations then directs unresolved disputes to the ADR process, which includes an administrative law judge, and provides a dispute resolution process for all utility service provisions within the PUC's jurisdiction. According to the PUC, the ADR process has AB 2861 Page 3 rarely if ever been used for distribution grid interconnection disputes. Instead, generators complain to PUC Energy division staff who lack the engineering expertise and authority to intervene. The PUC reports that in the last year, the Energy Division has received 20-30 informal request for assistance with interconnection disputes. This bill provides an expedited dispute process through technical advisory and review panels. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081