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SB-338 Net-load peak energy.(2017-2018)

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Date Published: 03/22/2017 04:00 AM
SB338:v98#DOCUMENT

Amended  IN  Senate  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 338


Introduced by Senator Skinner
(Principal coauthor: Assembly Member Mullin)

February 14, 2017


An act to add Sections 400.1 and 913.13 to the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 338, as amended, Skinner. Clean Peak Reliability Requirement. Net-load peak energy.
Existing law requires the Public Utilities Commission (PUC) and the State Energy Resources Conservation and Development Commission (Energy Commission) to take specified actions in furtherance of meeting the state’s clean energy and pollution reduction objectives, including, among others, taking into account in proceedings associated with meeting the objectives the opportunities to decrease costs and increase benefits using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite.
This bill, on or before January 1, 2020, would require the PUC and the Energy Commission, in consultation with the Independent System Operator, to establish policies or procedures to ensure that electrical service providers meet net-load peak, as defined, energy and reliability needs while minimizing the use of fossil fuels and utilizing low-carbon technologies and electrical grid management strategies, as specified. The bill would require the PUC, no later than January 1, 2022, and every 4 years thereafter, to make a specified report to the Legislature.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the PUC implementing its requirements would be a crime, the bill 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.

The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030.

This bill would state the intent of the Legislature to enact legislation that would establish a Clean Peak Reliability Requirement to ensure the state’s adoption of renewable energy generation results in an overall reduction of emissions of greenhouse gases from the electrical grid.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 The Legislature finds and declares that the intent of establishing a low-cost, low-carbon reliability requirement is to ensure that the state meets its energy goals while reducing the need for new electricity generation and unnecessary new transmission, thus achieving the state’s goals at the least cost to ratepayers.

SEC. 2.

 Section 400.1 is added to the Public Utilities Code, to read:

400.1.
 (a) “Net-load peak” is the daily period of three or more consecutive hours in which the latest of the three hours is the hour of peak demand for electricity, excluding demand met by generation on the customer side of the meter.
(b) On or before January 1, 2020, the commission and the Energy Commission, in consultation with the Independent System Operator, shall establish policies or procedures to ensure that electrical service providers meet net-load peak energy and reliability needs while minimizing the use of fossil fuels and utilizing low-carbon technologies and electrical grid management strategies.
(c) In furtherance of subdivision (a), the commission and the Energy Commission may consider establishing new targets or requirements for energy technology that minimizes the percent of load met by fossil fuels during net-load peak energy demand and maximizes the use of low-carbon technologies to meet energy and capacity needs, including, but not limited to, any of the following:
(1) Energy storage.
(2) Demand response or demand management technology.
(3) Energy efficiency.

SEC. 3.

 Section 913.13 is added to the Public Utilities Code, to read:

913.13.
 No later than January 1, 2022, and every four years thereafter, the commission shall report to the Legislature on all of the following:
(a) The percent of overall energy needs met through the use of fossil-fueled electrical generation during net-load peak demand, as defined in Section 400.1.
(b) The commission’s efforts to reduce the percentage of energy needs met through the use of fossil-fueled electrical generation.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.

It is the intent of the Legislature to enact legislation that would establish a Clean Peak Reliability Requirement to ensure the state’s adoption of renewable energy generation results in an overall reduction of emissions of greenhouse gases from the electrical grid.