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SB-64 Independent System Operator: integration of generation from renewable energy resources.(2017-2018)

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Date Published: 04/07/2017 04:00 AM
SB64:v97#DOCUMENT

Amended  IN  Senate  April 06, 2017
Amended  IN  Senate  March 22, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 64


Introduced by Senator Wieckowski

December 22, 2016


An act to add Article 3.6 (commencing with Section 354) to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 64, as amended, Wieckowski. Independent System Operator: integration of generation from renewable energy resources.
The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation. Existing law requires the ISO to manage the transmission grid and related energy markets in a manner consistent with (1) making the most efficient use of available energy resources, (2) reducing overall economic cost to the state’s consumers to the extent possible, (3) applicable state law intended to protect the public’s health and the environment, (4) maximizing availability of existing electrical generation resources necessary to meet the needs of the state’s electricity consumers, (5) conducting internal operations in a manner that minimizes cost impact on ratepayers to the extent practicable, and (6) communicating with all balancing area authorities in California in a manner that supports electrical reliability. The Clean Energy and Pollution Reduction Act of 2015 provides for the transformation of the ISO into a regional organization, with the approval of the Legislature, pursuant to a specified process. That process provides that modifications to the ISO’s governance structure, through changes to its bylaws or other corporate governance documents, will not become effective until the ISO, Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), State Air Resources Board (state board), Governor, and Legislature take specified actions.
This bill would require the ISO by January 1, 2019, in consultation with the PUC, Energy Commission, state board, and the public, to review and revise its operations to minimize any logistical impediments, including export limits, to day-ahead scheduling of intermittent generation from renewable energy resources between the ISO and other balancing area authorities, in order to address any over-supply of generation from renewable energy resources at times when it is inexpensive and abundant. The bill would provide that it does not authorize the ISO to change its governance or avoid compliance with the process for its transformation into a regional organization. governance, transform into a regional organization, or avoid compliance with any requirement of federal law.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 3.6 (commencing with Section 354) is added to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, to read:
Article  3.6. Renewable Energy Resource Integration

354.
 (a) On or before January 1, 2019, the Independent System Operator, in consultation with the commission, the Energy Commission, the State Air Resources Board, and the public, shall review and revise its operations to minimize any logistical impediments, including export limits, to day-ahead scheduling of intermittent generation from renewable energy resources between the Independent System Operator and other balancing area authorities, in order to address any over-supply of generation from renewable energy resources at times when it is inexpensive and abundant.
(b) Nothing in this section authorizes the Independent System Operator to change its governance or to avoid compliance with Section 352, Article 5 (commencing with Section 359), or governance, transform into a regional organization as described in Section 359.5, or avoid compliance with any requirement of federal law.