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SB-1351 Electricity: state policy.(2023-2024)

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Date Published: 04/29/2024 02:00 PM
SB1351:v96#DOCUMENT

Amended  IN  Senate  April 29, 2024
Amended  IN  Senate  April 10, 2024
Amended  IN  Senate  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1351


Introduced by Senator Padilla

February 16, 2024


An act to amend Section 454.53 of the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


SB 1351, as amended, Padilla. Electricity: state policy.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the PUC, State Energy Resources Conservation and Development Commission (Energy Commission), and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy.
This bill would require the PUC, Energy Commission, and state board, in consultation with all California balancing authorities and as part of a public process, on or before January 1, 2026, and subsequently as part of the above-described joint report, to issue a report to the Legislature that contains a clean energy infrastructure development plan setting out the infrastructure and processes necessary for the state to accomplish the above-described state policy, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 454.53 of the Public Utilities Code is amended to read:

454.53.
 (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity to California end-use customers by December 31, 2035, 95 percent of all retail sales of electricity to California end-use customers by December 31, 2040, 100 percent of all retail sales of electricity to California end-use customers by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electrical system for the State of California does not cause or contribute to increased emissions of greenhouse gases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.
(b) The commission, Energy Commission, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:
(1) Maintain and protect the safety, reliable operation, and balancing of the electrical system.
(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.
(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain reductions in the emissions of greenhouse gases that ensure equity between other sectors and the electricity sector.
(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.
(5) Not consider the energy, capacity, or any attribute from the Diablo Canyon Unit 1 or Unit 2 powerplant after August 26, 2025, in achieving the policy described in subdivision (a).
(c) This section does not affect a retail seller’s obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).
(d) The commission, Energy Commission, and State Air Resources Board shall do all of the following:
(1) Use programs authorized under existing statutes to achieve the policy described in subdivision (a).
(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:
(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.
(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).
(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electrical, gas, and water utilities, including customer rate impacts and benefits.
(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).
(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.
(3) On or before December 1, 2023, and annually thereafter, in consultation with California balancing authorities, as defined in subdivision (d) of Section 399.12, and as part of, or an interim addendum to, the quadrennial joint report required by paragraph (2), as applicable, issue a joint reliability progress report that reviews system and local reliability within the context of the policy described in subdivision (a), with a particular focus on summer reliability. The joint reliability progress report shall identify challenges and gaps, if any, to achieving system and local reliability and identify the amount and cause of any delays to achieving compliance with all energy and capacity procurement requirements set by the commission.
(4) (A) In consultation with all California balancing authorities, as part of a public process, on or before January 1, 2026, and subsequently as part of the quadrennial joint report required by paragraph (2), issue a report to the Legislature that contains a clean energy infrastructure development plan setting out the infrastructure and processes necessary for the state to accomplish the policy described in subdivision (a).
(B) The plan shall include all of the following:
(i) A An estimated timeline and milestones by which each portion of the clean energy infrastructure shall plan is expected to be functional.
(ii) The necessary actions each state agency, local government, load-serving entity, transmission owner, independent system operator, and local publicly owned electric utility shall take to comply with the plan, and when those actions shall be taken. plans to take and an estimated timeline in support of the plan.
(iii) Any recommended statutory changes necessary or helpful to achieve the policy described in subdivision (a).
(iv) For each subsequent plan after the plan contained in the report due on or before January 1, 2026, an evaluation of the extent to which the prior plan has been achieved, the reasons for any failure to achieve the plan, adjustments, and the steps needed to improve performance to achieve the policy described in subdivision (a).
(C) The plan shall consider each of the elements provided in subparagraphs (A) to (E), inclusive, of paragraph (2).
(D) For purposes of this paragraph, the following definitions apply:
(i) “California balancing authority” has the same meaning as defined in subdivision (d) of Section 399.12.
(ii) “Infrastructure” means generating plants, transmission facilities, distribution facilities, and all necessary associated equipment.
(E) A report to be submitted pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.
(e) This section does not authorize the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.
(f) This section does not limit any entity, including local governments, from accelerating their achievement of the state’s electric sector decarbonization targets.