BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2861


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          ASSEMBLY THIRD READING


          AB  
          2861 (Ting)


          As Amended  April 27, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Utilities       |14-0 |Gatto, Patterson,     |                    |
          |                |     |Burke, Chávez, Dahle, |                    |
          |                |     |Eggman, Cristina      |                    |
          |                |     |Garcia,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Hadley,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Williams    |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |








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          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Authorizes the California Public Utilities Commission  
          (CPUC) to establish an expedited distribution grid  
          interconnection dispute resolution process to resolve disputes  
          within 60 days, unless it determines more time is needed.   
          Specifies the elements to be included in in the dispute  
          resolution process and requires the CPUC to establish a  
          technical advisory panel, a review panel, and a public process  
          for each dispute.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, if the CPUC opted to establish the expedited dispute  
          process, it would likely require an additional $550,000, seven  
          staff positions and $300,000 in contracts. (CPUC 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  








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            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 CPUC 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 CPUC's  
            jurisdiction.  According to the CPUC, the ADR process has  
            rarely if ever been used for distribution grid interconnection  
            disputes.  Instead, generators complain to CPUC Energy  
            division staff who lack the engineering expertise and  
            authority to intervene.  The CPUC reports that in the last  
            year, the Energy Division has received 20 to 30 informal  
            requests for assistance with interconnection disputes.


            This bill provides an expedited dispute process through  
            technical advisory and review panels.




          Analysis Prepared by:                                             
                          Sue Kateley / U. & C. / (916) 319-2083  FN:  
          0003108

















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