Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1935

Introduced by Assembly Member Campos

February 19, 2014

An act to amend Section begin delete 769 end delete begin insert 321.7 end insert of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 1935, as amended, Campos. Electricity: clean distributed energy begin delete technologies. end delete begin insert resources. end insert

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Existing law requires the Public Utilities Commission (PUC), 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.

end insert begin insert

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

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Existing law requires each electrical corporation, no later than July 1, 2015, to submit to the Public Utilities Commission a distribution resources plan proposal to identify the optimal locations for the deployment of distributed resources. Existing law defines the term “distributed resources.” Existing law requires the commission to review and approve the plan.

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This bill would revise the definition of “distributed resources” to include clean distributed energy technology, as defined.

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

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

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begin insert SECTION 1. end insert   

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begin insert Section 321.7 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

321.7.  

(a) On or before January begin delete 1, 2010, and biennially
thereafter, end delete begin insert 1st of every other year, end insert the commission, in consultation
with the Independent System Operator and the begin delete State end delete Energy
begin delete Resources Conservation and Development end delete Commission, shall
study, and submit a report to the Legislature and the Governor, on
the impacts of begin insert clean end insert distributed energy begin delete generation end delete begin insert resources end insert on
the state’s distribution and transmission grid. begin delete The end delete

begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(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
the emission factor for electricity developed by the State Air
Resources Board in the scoping plan adopted pursuant to Section
38561 of the Health and Safety Code.

end insert begin insert

(C) Has an oxide of nitrogen emissions rate, including, when
applicable, credit for waste heat recovery, that is less than or equal
to the standard set forth in Section 94203 of Title 17 of the
California Code of Regulations.

end insert begin insert

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

end insert begin insert

(2) An eligible renewable energy resource, as defined in Section
399.12, that uses organic waste or biogas as its feedstock and has
a nameplate generation capacity of 20 or less megawatts.

end insert begin insert

(3) A demandside reduction resource.

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(4) An energy storage technology that stores energy from a
technology or resource specified in paragraph (1), (2), or (3).

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begin insert (c) end insert begin insert   end insert begin insert The end insert study shall evaluate all of the following:

(1) Reliability and transmission issues related to connecting
begin insert clean end insert distributed energy begin delete generation end delete begin insert resources end insert to the local
distribution networks and regional grid.

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

(3) The effect on overall grid operation of various begin insert clean end insert
distributed energy begin delete generation sources. end delete begin insert resources. end insert

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

(5) Emerging technologies related to begin insert clean end insert distributed energy
begin delete generation end delete begin insert resources end insert interconnection.

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

(7) The effect on peak demand for electricity.

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(b)

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begin insert (d) end insert  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,
the self-generation incentive program authorized by Section 379.6,
and the net energy metering pilot program authorized by Section
2827.9.

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

end insert

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SECTION 1.  

Section 769 of the Public Utilities Code is
amended to read:

769.  

(a) For purposes of this section, the following terms have
the following meanings:

(1) “Clean distributed energy technology” means any of the
following:

(A) An energy generation technology that meets all of the
following criteria:

(i) Converts an energy resource into electricity or heat.

(ii) Meets or exceeds the emission factor for electricity
developed by the State Air Resources Board in the scoping plan
adopted pursuant to Section 38561 of the Health and Safety Code.

(iii) Meets or exceeds the oxides of nitrogen emissions rate
standard set forth in Section 94203 of Title 17 of the California
Code of Regulations.

(iv) Has a nameplate rated generation capacity of 20 or less
megawatts.

(B) A conversion technology that meets all of the following
criteria:

(i) (I) Converts organic waste into a useful energy resource.

(II) For the purposes of this clause, “organic waste” means waste
consisting of organic matter, as defined by the Department of
Resources Recycling and Recovery pursuant to Division 30
(commencing with Section 40000) of the Public Resources Code,
that is a byproduct of another process that would normally be
emitted or transported to the environment.

(ii) Meets or exceeds the oxides of nitrogen emissions rate
standard set forth in Section 94203 of Title 17 of the California
Code of Regulations.

(iii) Has a nameplate rated generation capacity of 20 or less
megawatts.

(2) “Distributed resources” means distributed renewable
generation resources, clean distributed energy technology, energy
efficiency, energy storage, electric vehicles, and demand response
technologies.

(3) “Energy resource” means a gas, liquid, or solid that can be
converted into mechanical work, electricity, or heat.

(b) Not later than July 1, 2015, each electrical corporation shall
submit to the commission a distribution resources plan proposal
to identify optimal locations for the deployment of distributed
resources. Each proposal shall do all of the following:

(1) Evaluate locational benefits and costs of distributed resources
located on the distribution system. This evaluation shall be based
on reductions or increases in local generation capacity needs,
avoided or increased investments in distribution infrastructure,
safety benefits, reliability benefits, and any other savings the
distributed resources provides to the electric grid or costs to
ratepayers of the electrical corporation.

(2) Propose or identify standard tariffs, contracts, or other
mechanisms for the deployment of cost-effective distributed
resources that satisfy distribution planning objectives.

(3) Propose cost-effective methods of effectively coordinating
existing commission-approved programs, incentives, and tariffs
to maximize the locational benefits and minimize the incremental
costs of distributed resources.

(4) Identify any additional utility spending necessary to integrate
cost-effective distributed resources into distribution planning
consistent with the goal of yielding net benefits to ratepayers.

(5) Identify barriers to the deployment of distributed resources,
including, but not limited to, safety standards related to technology
or operation of the distribution circuit in a manner that ensures
reliable service.

(c) The commission shall review each distribution resources
plan proposal submitted by an electrical corporation and approve,
or modify and approve, a distribution resources plan for the
corporation. The commission may modify any plan as appropriate
to minimize overall system costs and maximize ratepayer benefit
from investments in distributed resources.

(d) An electrical corporation spending on distribution
infrastructure necessary to accomplish the distribution resources
plan shall be proposed and considered as part of the next general
rate case for the corporation. The commission may approve
proposed spending if it concludes that ratepayers would realize
net benefits and the associated costs are just and reasonable. The
commission may also adopt criteria, benchmarks, and
accountability mechanisms to evaluate the success of any
investment authorized pursuant to a distribution resources plan.

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