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SB-423 Energy: firm zero-carbon resources.(2021-2022)

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Date Published: 09/24/2021 02:00 PM
SB423:v90#DOCUMENT

Senate Bill No. 423
CHAPTER 243

An act to add Section 25305.5 to, and to add and repeal Section 25216.7 of, the Public Resources Code, relating to energy.

[ Approved by Governor  September 23, 2021. Filed with Secretary of State  September 23, 2021. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 423, Stern. Energy: firm zero-carbon resources.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to biennially adopt an integrated energy policy report that includes an overview of major energy trends and issues facing the state and an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation that considers all aspects of energy industries and markets that are essential for the state economy, general welfare, public health and safety, energy diversity, and protection of the environment.
This bill would require the Energy Commission to timely incorporate into its integrated energy policy reports electrical resources that can individually, or in combination, deliver electricity with high availability for the expected duration of multiday extreme or atypical weather events and facilitate integration of eligible renewable energy resources into the electrical grid and the transition to a zero-carbon electrical grid, referred to as “firm zero-carbon resources.”
This bill would require the Energy Commission, in consultation with the Public Utilities Commission, Independent System Operator, and State Air Resources Board, on or before December 31, 2023, to submit to the Legislature an assessment of the firm zero-carbon resources that support a clean, reliable, and resilient electrical grid in California and will achieve the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) There is an urgent need to accelerate development and procurement of zero-carbon energy resources in California, bolster electrical grid reliability and resiliency, and support economic development and job growth in a manner that aligns with the state’s clean energy objectives.
(2) California is a global leader in solar energy and lithium ion battery storage deployment, and these resources are increasingly and urgently needed to boost electrical grid reliability and support the state’s transition to clean energy in a cost-effective manner; however, additional resources are needed to provide for a clean, reliable, and resilient electrical grid.
(3) The recent joint agency report developed pursuant to Chapter 312 of the Statutes of 2018 highlights the value of developing a diverse set of additional clean energy resources, including geothermal, offshore wind, longer duration energy storage, and cost-effective firm baseload and firm flexible zero-carbon resources, to most efficiently and cost-effectively meet the state’s clean energy goals.
(4) Several promising zero-carbon resources are emerging, which can provide firm baseload or firm flexible electricity, including green electrolytic hydrogen and new long-duration and multiday energy storage resources. California also has world-class geothermal and offshore wind potential.
(5) Quickly and cost-effectively deploying these and other firm baseload and firm flexible zero-carbon resources may provide reliability and resiliency benefits for California’s electrical grid and communities, benefits to electricity ratepayers, and broad environmental benefits, including in those communities disproportionately impacted by pollution.
(b) It is the intent of the Legislature that state agencies take near-term steps to support the rapid and ongoing deployment of renewable and zero-carbon resources at levels needed to support a clean, reliable, and resilient electrical grid.

SEC. 2.

 Section 25216.7 is added to the Public Resources Code, to read:

25216.7.
 (a) On or before December 31, 2023, the commission, in consultation with the Public Utilities Commission, Independent System Operator, and State Air Resources Board, shall submit to the Legislature an assessment of firm zero-carbon resources that support a clean, reliable, and resilient electrical grid in California and will achieve the policy described in Section 454.53 of the Public Utilities Code.
(b) The assessment shall do all of the following:
(1) Identify all available, commercially feasible and near-commercially feasible firm zero-carbon resources that could support a clean, reliable, and resilient electrical grid, and distinguish which resources are capable of addressing system reliability needs and local reliability needs, with an emphasis on reducing the emissions of greenhouse gases, toxic air contaminants, and criteria air pollutants.
(2) Evaluate the magnitude of potential needs for and role of firm zero-carbon resources using a reasonable range of resource cost and performance assumptions that reflect emerging technology trends in order to help integrate generation from eligible renewable energy resources into the electrical grid on a daily, multiday, and seasonal basis.
(3) Identify barriers to the development of firm zero-carbon resources and possible solutions to address those barriers, including pathways for additional procurement of those resources by load-serving entities, including joint procurements by electrical corporations, community choice aggregators, direct access customers, local publicly owned electric utilities, and other public entities, or a central procurement entity.
(4) Recommend changes to research and development projects, demonstration projects, and energy incentives to support the contributions of firm zero-carbon resources to the near-, mid-, and long-term reliability and resiliency of California’s electrical grid, consistent with California’s goals to reduce localized air pollutants and emissions of greenhouse gases, including early priority in disadvantaged communities.
(5) Evaluate the reliability of load-serving entities’ integrated resource plans under multiday extreme and atypical weather events, which shall include, at minimum, events with extended periods of low renewable energy generation and events that occur in all seasons at least as frequently as once per 10 years.
(6) Evaluate the use of energy storage to achieve the goals pursuant to this section.
(c) The assessment shall not affect the process any load-serving entity uses to develop or procure resources to serve its customers.
(d) For purposes of this section, the following definitions apply:
(1) “Eligible renewable energy resources” has the same meaning as defined in Section 399.12 of the Public Utilities Code.
(2) “Firm zero-carbon resources” are electrical resources that can individually, or in combination, deliver zero-carbon electricity with high availability for the expected duration of multiday extreme or atypical weather events, including periods of low renewable energy generation, and facilitate integration of eligible renewable energy resources into the electrical grid and the transition to a zero-carbon electrical grid.
(3) “Load-serving entities” has the same meaning as defined in Section 380 of the Public Utilities Code.
(e) (1) The assessment to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2026.

SEC. 3.

 Section 25305.5 is added to the Public Resources Code, to read:

25305.5.
 (a) The commission shall timely incorporate firm zero-carbon resources into the integrated energy policy report prepared pursuant to Section 25302.
(b) For purposes of this section, “firm zero-carbon resources” are electrical resources that can individually, or in combination, deliver electricity with high availability for the expected duration of multiday extreme or atypical weather events, including periods of low renewable energy generation, and facilitate integration of eligible renewable energy resources into the electrical grid and the transition to a zero-carbon electrical grid.