AB 1061: Electricity Supply Strategic Reliability Reserve Program.

Existing law requires the State Energy Resources Conservation and Development Commission to implement and administer the Distributed Electricity Backup Assets Program to incentivize the construction of distributed energy assets that would serve as on-call emergency supply or load reduction for the electrical grid during extreme events. Existing law requires the commission to also implement and administer the Demand Side Grid Support Program to incentivize dispatchable customer load reduction and backup generation operation as on-call emergency supply or load reduction for the electrical grid during extreme events. Existing law requires the Department of Water Resources to implement projects, purchases, and contracts to carry out the purposes of those programs. Existing law authorizes the department to construct, own and operate, or contract for specified types of electrical generation and energy storage facilities for these purposes.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions, as provided. The act also requires the state board to adopt greenhouse gas emissions limits and emissions reduction measures by regulation, including the use of market-based compliance mechanisms.

This bill would expressly require facilities constructed by the department or under a contract with the department for purposes of the Distributed Electricity Backup Assets Program or the Demand Side Grid Support Program to comply with the regulations adopted by the state board.