AB 2476: Electricity: integrated resource plans: Department of Water Resources: procurement.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-18
Current Status:
Passed
(2026-09-18: Chaptered by Secretary of State - Chapter 302, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law requires the Public Utilities Commission to adopt a process for each load-serving entity, as defined, to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity takes specified actions, as specified. Existing law requires the commission to determine if there is a need for the procurement of eligible energy resources, as described, requires the commission to specify the eligible energy resources that should be procured to meet that need, and authorizes the commission, within 6 months of making that determination, to request the Department of Water Resources to procure those specified resources that meet the portfolio of resources, as specified. Existing law authorizes the department to procure those resources pursuant to that request only before January 1, 2035, as provided. Existing law authorizes the department to procure resources from a pump hydroelectric facility pursuant to these provisions if the pump hydroelectric facility does not exceed 500 megawatts and was directly appropriated funding by the state before January 1, 2023.
This bill would eliminate the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the department to procure resources from the facility.
This bill would incorporate additional changes to Section 454.52 of the Public Utilities Code proposed by AB 2369 to be operative only if this bill and AB 2369 are enacted and this bill is enacted last.
Existing law requires the Public Utilities Commission to adopt a process for each load-serving entity, as defined, to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity takes specified actions, as specified. Existing law requires the commission to determine if there is a need for the procurement of eligible energy resources, as described, requires the commission to specify the eligible energy resources that should be procured to meet that need, and authorizes the commission, within 6 months of making that determination, to request the Department of Water Resources to procure those specified resources that meet the portfolio of resources, as specified. Existing law authorizes the department to procure those resources pursuant to that request only before January 1, 2035, as provided. Existing law authorizes the department to procure resources from a pump hydroelectric facility pursuant to these provisions if the pump hydroelectric facility does not exceed 500 megawatts and was directly appropriated funding by the state before January 1, 2023.
This bill would eliminate the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the department to procure resources from the facility.
This bill would incorporate additional changes to Section 454.52 of the Public Utilities Code proposed by AB 2369 to be operative only if this bill and AB 2369 are enacted and this bill is enacted last.
Existing law requires the Public Utilities Commission to adopt a process for each load-serving entity, as defined, to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity takes specified actions, as specified. Existing law requires the commission to determine if there is a need for the procurement of eligible energy resources, as described, requires the commission to specify the eligible energy resources that should be procured to meet that need, and authorizes the commission, within 6 months of making that determination, to request the Department of Water Resources to procure those specified resources that meet the portfolio of resources, as specified. Existing law authorizes the department to procure those resources pursuant to that request only before January 1, 2035, as provided. Existing law authorizes the department to procure resources from a pump hydroelectric facility pursuant to these provisions if the pump hydroelectric facility does not exceed 500 megawatts and was directly appropriated funding by the state before January 1, 2023.
This bill would eliminate the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the department to procure resources from the facility.
This bill would incorporate additional changes to Section 454.52 of the Public Utilities Code proposed by AB 2369 to be operative only if this bill and AB 2369 are enacted and this bill is enacted last.
Existing law requires the Public Utilities Commission to adopt a process for each load-serving entity, as defined, to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity take takes specified actions, as specified. Existing law requires the commission to determine if there is a need for the procurement of eligible energy resources, as described, and requires the commission to specify the eligible energy resources that should be procured to meet that need, and authorizes the commission, within 6 months of making that determination, to request the Department of Water Resources to procure those specified resources that meet the portfolio of resources, as specified. Existing law authorizes the department to procure those resources pursuant to that request only before January 1, 2035, as provided. Existing law authorizes the department to procure resources from a pump hydroelectric facility pursuant to these provisions if the pump hydroelectric facility does not exceed 500 megawatts and was directly appropriated funding by the state before January 1, 2023.
This bill would additionally authorize eliminate the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the department to procure resources from a pump hydroelectric facility pursuant to the above-described provisions if the pump hydroelectric facility is exempt from Federal Energy Regulatory Commission licensing. the facility.
Existing law requires the Public Utilities Commission to adopt a process for each load-serving entity, as defined, to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity take specified actions, as specified. Existing law requires the commission to determine if there is a need for the procurement of eligible energy resources, as described, and requires the commission to specify the eligible energy resources that should be procured to meet that need, and authorizes the commission, within 6 months of making that determination, to request the Department of Water Resources to procure those specified resources that meet the portfolio of resources, as specified. Existing law authorizes the department to procure those resources pursuant to that request only before January 1, 2035, as provided. Existing law authorizes the department to procure resources from a pump hydroelectric facility pursuant to these provisions if the pump hydroelectric facility does not exceed 500 megawatts and was directly appropriated funding by the state before January 1, 2023.
This bill would additionally authorize the department to procure resources from a pump hydroelectric facility pursuant to the above-described provisions if the pump hydroelectric facility is exempt from Federal Energy Regulatory Commission licensing.
(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
SEC. 1.5.Section 454.52 of the Public Utilities Code is amended to read:454.52.(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(5)When requiring procurement pursuant to this subdivision, including, but not limited to, ad hoc procurement orders and programmatic requirements, the commission shall account for the ability of energy-only resources to achieve required clean energy deployment rates, to charge storage resources during off-peak periods, and to increase resource diversity, and shall enable energy-only resources to satisfy procurement requirements to the maximum extent feasible.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 454.52 of the Public Utilities Code proposed by both this bill and Assembly Bill 2369. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 454.52 of the Public Utilities Code, and (3) this bill is enacted after Assembly Bill 2369, in which case Section 1 of this bill shall not become operative.
(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
SEC. 1.5.Section 454.52 of the Public Utilities Code is amended to read:454.52.(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(5)When requiring procurement pursuant to this subdivision, including, but not limited to, ad hoc procurement orders and programmatic requirements, the commission shall account for the ability of energy-only resources to achieve required clean energy deployment rates, to charge storage resources during off-peak periods, and to increase resource diversity, and shall enable energy-only resources to satisfy procurement requirements to the maximum extent feasible.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 454.52 of the Public Utilities Code proposed by both this bill and Assembly Bill 2369. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 454.52 of the Public Utilities Code, and (3) this bill is enacted after Assembly Bill 2369, in which case Section 1 of this bill shall not become operative.
(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
SEC. 1.5.Section 454.52 of the Public Utilities Code is amended to read:454.52.(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(5)When requiring procurement pursuant to this subdivision, including, but not limited to, ad hoc procurement orders and programmatic requirements, the commission shall account for the ability of energy-only resources to achieve required clean energy deployment rates, to charge storage resources during off-peak periods, and to increase resource diversity, and shall enable energy-only resources to satisfy procurement requirements to the maximum extent feasible.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023. megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 454.52 of the Public Utilities Code proposed by both this bill and Assembly Bill 2369. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 454.52 of the Public Utilities Code, and (3) this bill is enacted after Assembly Bill 2369, in which case Section 1 of this bill shall not become operative.
(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023, or is exempt from Federal Energy Regulatory Commission licensing. megawatts.
(i)For purposes of this section, all of the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
(a)(1)Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:
(A)Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sectors percentage in achieving the economywide greenhouse gas emissions reductions pursuant to Section 38566 of the Health and Safety Code.
(B)Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with the state policy specified in Section 454.53 and Article 16 (commencing with Section 399.11) of Chapter 2.3.
(C)Enable each electrical corporation to fulfill its obligation to serve its customers at just and reasonable rates.
(D)Minimize impacts on ratepayers bills.
(E)(i)Ensure system and local reliability on a short-term, midterm, and long-term basis, including meeting the short-term and forecast long-term resource adequacy requirements of Section 380, and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls by taking into account impacts due to climate change, forecasted levels of building and transportation electrification, and other factors that can result in those shortfalls.
(ii)In furtherance of avoiding unplanned energy supply shortfalls or expensive emergency procurement and ensuring a more accurate understanding of electrical grid operational needs, the commission shall aggregate reported short-term and midterm resource procurement from all load-serving entities conducted under Section 380 or this section and assess midterm resource sufficiency, and annually provide anonymized reports to the Independent System Operator. The commission shall report forward resource procurement using counting conventions that provide the data to the Independent System Operator to be used in its grid planning.
(iii)To accomplish clause (i), the commission shall, as part of the integrated planning process, assess short-term, midterm, and long-term reliability by conducting probabilistic reliability modeling, including if there is sufficient capacity available for procurement in the short term and midterm by all load-serving entities to meet their procurement requirements. The commission shall review the results of that reliability modeling in a public proceeding at the same frequency as the forecast conducted in accordance with this section. When modeling short-term and midterm reliability, the commission shall model all procurement consistent with clause (ii) and may rely upon or incorporate probabilistic reliability modeling conducted by the Energy Commission into the commissions public process. The commission shall also report the modeling results in the joint Reliability Planning Assessments conducted under Section 25233 of the Public Resources Code.
(F)Comply with paragraph (1) of subdivision (b) of Section 399.13.
(G)Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.
(H)Enhance distribution systems and demand-side energy management.
(I)Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(J)Maintain a diverse portfolio of energy resources, which may include eligible energy resources procured by the Department of Water Resources.
(2)(A)The commission may authorize all source procurement for load-serving entities that includes various resource types including demand-side resources, supply-side resources, and resources that may be either demand-side resources or supply-side resources, taking into account the differing load-serving entities geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).
(B)The commission may approve procurement of resource types that will reduce the overall emissions of greenhouse gases from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.
(3)In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the states energy goals at the least cost to ratepayers.
(4)(A)On or before September 1, 2024, and consistent with the process and schedule adopted pursuant to paragraph (1), the commission, in consultation with the Energy Commission and the Independent System Operator, shall determine if there is a need for the procurement of eligible energy resources based on a review of the integrated resource plans submitted by load-serving entities in compliance with the requirements of this section and Section 454.53 and the progress towards meeting the portfolio of resources identified pursuant to subdivision (a) of Section 454.51.
(B)If the commission determines that there is a need for the procurement of eligible energy resources, the commission shall specify the eligible energy resources that should be procured to meet that need.
(C)Within six months of determining that there is a need for the procurement of eligible energy resources, the commission may request the Department of Water Resources to exercise its central procurement function to procure those eligible energy resources specified pursuant to subparagraph (B) that meet the portfolio of resources identified in subdivision (a) of Section 454.51.
(D)(i)Upon receiving a request pursuant to subparagraph (C), the Department of Water Resources, before January 1, 2035, may exercise its central procurement function to conduct one or more competitive solicitations and enter into contracts to procure eligible energy resources in order to achieve the policy of the state specified in Section 454.53.
(ii)Any contract entered into by the Department of Water Resources pursuant to clause (i) and approved by the commission pursuant to Section 80821 of the Water Code before January 1, 2035, shall remain in force for the duration of the contract.
(E)The Department of Water Resources exercising of its central procurement function to procure eligible energy resources pursuant to this paragraph shall be conducted in accordance with Division 29.5 (commencing with Section 80800) of the Water Code.
(b)(1)Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.
(2)Each electrical corporations plan shall follow Section 454.5.
(3)The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:
(A)Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).
(B)A diversified procurement portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(C)The resource adequacy requirements established pursuant to Section 380.
(4)The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of short-term, midterm, and long-term electricity, electricity-related, and demand reduction products.
(c)To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51. The commission may order the procurement of resources with specific attributes by load-serving entities as a result of the integrated resource planning process and shall enforce any resource procurement requirements on a nondiscriminatory basis. Enforcement may include the assessment of penalties for noncompliance.
(d)To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.
(e)This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.
(f)(1)The commission shall not include the energy, capacity, or any attribute from Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025, in the adopted integrated resource plan portfolios, resource stacks, or preferred system plans.
(2)The commission shall disallow a load-serving entity from including in their adopted integrated resource plan any energy, capacity, or any attribute from the Diablo Canyon Unit 1 beyond November 1, 2024, or Unit 2 beyond August 26, 2025.
(g)For a thermal powerplant that uses nuclear fission technology not constructed in the twenty-first 21st century, all resource attributes shall be retired on January 1, 2031, and shall be reported as a separate, separate line item resource for purposes of complying with Section 398.4.
(h)(1)Only a new energy resource that meets all of the following requirements is eligible to be procured by the Department of Water Resources pursuant to this section:
(A)The resource directly supports attainment of the goals specified in Section 454.53 without increasing the states dependence on any fossil fuel-based resources.
(B)The resource is determined by the commission to not be under contract at sufficient levels as shown in load-serving entities most recent individual integrated resource plans submitted to and reviewed by the commission pursuant to this section to achieve the goals specified in Section 454.53.
(C)The resource has a construction and development lead time of at least five years.
(D)The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
(E)The resource does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
(2)Resources from a pump hydroelectric facility may be procured by the Department of Water Resources pursuant to this section if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023. 2023, or is exempt from Federal Energy Regulatory Commission licensing.
(i)For purposes of this section, the following definitions apply:
(1)Load-serving entity has the same meaning as defined in Section 380.
(2)Long term means a time period that includes five or more years in the future.
(3)Midterm means a time period between two and five years in the future.
(4)Short term means a time period between the present and two years in the future.
|
Date
|
Status
|
|---|---|
| Sep 18, 2026 | Chaptered by Secretary of State - Chapter 302, Statutes of 2026. |
| Sep 18, 2026 | Approved by the Governor. |
| Sep 15, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0.). |
| Aug 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 6973.). |
| Aug 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 27, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 26, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Aug 24, 2026 | Read second time. Ordered to third reading. |
| Aug 20, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 20, 2026 | Ordered to third reading. |
| Aug 20, 2026 | Action rescinded whereby the bill was read third time, passed, and to Assembly. |
| Aug 18, 2026 | In Senate. Held at Desk. |
| Aug 18, 2026 | Withdrawn from Engrossing and Enrolling. |
| Aug 18, 2026 | Ordered to the Senate. |
| Aug 17, 2026 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 17, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5492.). |
| Aug 17, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). |
| Jun 23, 2026 | Read second time. Ordered to third reading. |
| Jun 22, 2026 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jun 9, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (June 8). Re-referred to Com. on APPR. |
| May 27, 2026 | Referred to Com. on E., U & C. |
| May 14, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 14, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0.) |
| May 14, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 5056.) |
| May 7, 2026 | Read second time. Ordered to Consent Calendar. |
| May 6, 2026 | From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 6). |
| Apr 28, 2026 | Re-referred to Com. on APPR. |
| Apr 27, 2026 | Read second time and amended. |
| Apr 23, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 22). |
| Mar 9, 2026 | Referred to Com. on U. & E. |
| Feb 21, 2026 | From printer. May be heard in committee March 23. |
| Feb 20, 2026 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2026 | AB 2476 Ellis Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 26, 2026 | Assembly 3rd Reading AB2476 Ellis By Grove | Senate Floor |
Passed |
|
| Aug 17, 2026 | Assembly 3rd Reading AB2476 Ellis By Grove | Senate Floor |
Passed |
|
| Jun 8, 2026 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
|
| May 14, 2026 | AB 2476 Ellis Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 6, 2026 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2026 | Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Utilities and Energy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Agricultural Energy Consumers Association | ** Support | |
| EDF Power | ** Support | |
| EDF Power Solutions | ** Support | |
| EDF power solutions North America | ** Support | |
| GreenGenStorage | ** Support | |
| Greengenstorage LLC | ** Support | |
| Rye Development | ** Support | |
| Rye Development, LLC | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2476
Author:(Ellis)
As Amended Ver:August 20, 2026
Majority vote
SUMMARY
Eliminates the requirement that a pumped storage hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the Department of Water Resources (DWR) to procure resources from the facility as part of the central procurement function.
Senate Amendments
Incorporate chaptering provisions to ensure both this bill and AB 2369 (Rogers, 2026) may be effectuated.
COMMENTS
In 2023, the Legislature authorized the California Public Utilities Commission (CPUC) to request DWR exercise a central procurement function to procure eligible long lead-time energy resources, until January 1, 2035. (AB 1373, E. Garcia, Chapter 367, Statutes of 2023). The law limits DWR′s authority to the procurement of only certain resources, including resources from a pump hydroelectric facility if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.
This bill removes the state funding requirement, expanding eligibility to any pumped storage facility at or below 500 MWs. The practical effect is to broaden the pool of pumped hydroelectric projects DWR can procure, allowing more facilities to qualify. Given that pumped storage is a key tool for storing renewable energy and managing grid reliability, this expansion of central procurement project eligibility may be warranted to enable DWR to pursue a wider range of storage projects before its central procurement authority expires in 2035.
According to the Author
″AB 2476 is designed to enhance the state′s existing central procurement program by permitting the procurement of pumped-storage hydro (PSH) as an eligible zero carbon resource available to the program. Under the initial program PSH was limited. PSH is a reliable, cost-effective, long-duration storage clean energy option that also diversifies the state′s energy resources.″
Arguments in Support
This bill is supported by the Agricultural Energy Consumers Association and various pumped storage developers (EDF Power, Greengenstorage, and Rye Development). Rye Development notes its belief this bill ″strikes the right balance between progress and protection. It does not change the central procurement process or mandate any specific project or technology; it merely expands the eligibility criteria to include a technology proven in California since 1967.″
Arguments in Opposition
None received.
FISCAL COMMENTS
This Senate Committee on Appropriations found this bill to not have a significant fiscal impact, sending the bill to the Senate Floor pursuant to Senate Rule 28.8.
VOTES:
ASM UTILITIES AND ENERGY: 18-0-0
YES: Petrie-Norris, Patterson, Boerner, Calderon, Chen, Davies, Mark González, Harabedian, Hart, Irwin, Kalra, Papan, Rogers, Schiavo, Schultz, Ta, Wallis, Zbur
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Hoover, Aguiar-Curry, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa
ABS, ABST OR NV: Arambula
ASSEMBLY FLOOR: 77-0-3
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
ABS, ABST OR NV: Arambula, Flora, Celeste Rodriguez
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
UPDATED
VERSION: August 20, 2026
CONSULTANT: Laura Shybut / U. & E. / (916) 319-2083 FN: 0004339
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 2476 |
THIRD READING
Bill No: AB 2476
Author: Ellis (R)
Amended: 8/19/26 in Assembly
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 16-0, 6/8/26
AYES: Allen, Ochoa Bogh, Archuleta, Arreguín, Ashby, Becker, Caballero, Dahle, Gonzalez, Grove, McNerney, Reyes, Richardson, Rubio, Strickland, Wahab
NO VOTE RECORDED: Hurtado
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/14/26 (Consent) - See last page for vote
SUBJECT: Electricity: integrated resource plans: Department of Water Resources: procurement
SOURCE: Rye Development, LLC
DIGEST:
This bill eliminates the requirement that a pumped storage hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the Department of Water Resources (DWR) to procure resources from the facility as part of the central procurement function.
Senate Floor Amendments of 08/19/26 address chaptering issues with AB 2369 (Rogers) which also amends Section 454.52 of the Public Utilities Code.
ANALYSIS:
Existing law:
- Establishes and vests the California Public Utilities Commission (CPUC) with regulatory authority over public utilities, including electrical corporations. (Article 12 of the California Constitution)
- Establishes the DWR to manage the state’s water supply. (Water Code §100 et seq.)
- Requires the CPUC, in consultation with the California Independent System Operator (CAISO), to establish resource adequacy (RA) requirements for all load-serving entities (LSEs), including community choice aggregators (CCAs) and electric service providers (ESPs). Requires the RA program to achieve certain objectives, including maximizing the ability of CCAs to determine the generation resources used to serve their customers. (Public Utilities Code §380)
- Authorizes the CPUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. (Public Utilities Code §451)
- Requires the CPUC to identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy in a cost-effective manner as part of the integrated resource planning (IRP) process. (Public Utilities Code §454.51)
- Requires the CPUC to adopt a process for each electrical corporation, ESP, or CCA to file an IRP and a schedule for periodic updates to the plan, and to ensure that LSEs meet other specified requirements. (Public Utilities Code §454.52)
- Requires the CPUC to determine if there is a need for the procurement of eligible energy resources, requires the CPUC to specify the eligible energy resources that should be procured to meet that need, and authorizes the CPUC, within six months of making that determination, to request the DWR to procure those specified resources that meet the portfolio of resources, as specified. (Public Utilities Code §454.52 (a)(4)(B)(C))
- Authorizes the DWR to procure those resources specified by the CPUC request only before January 1, 2035. (Public Utilities Code §454.52 (a)(4)(D)(E))
- Provides that eligible energy resources procured by DWR meets all the following requirements:
- The resource directly supports attainment of the state’s goal to achieve 100% zero-carbon and renewable energy resources by 2045, without increasing reliance on the state’s dependence on any fossil fuel-based resources.
- The CPUC determines the resource to not be under contract at sufficient levels as shown in LSEs’ most recent individual IRPs submitted to and reviewed by the CPUC to achieve SB 100 (De León, Chapter 312, Statutes of 2018) goals.
- The resource has a construction and development lead time of at least five years.
- The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
- The resource does not use combustion to generate electricity (except ancillary and necessary to facility geothermal electricity generation). (Public Utilities Code §454.52 (h)(1))
- Authorizes a pumped hydroelectric facility to qualify as an eligible energy resource if it does not exceed 500 megawatts (MW) and has been appropriated funding by the state before January 1, 2023. (Public Utilities Code §454.52 (h)(2))
- Establishes the policy of the state 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. (Public Utilities Code §454.53)
- Establishes a renewables portfolio standard (RPS) and requires all retail sellers, including investor-owned utilities (IOUs), ESPs, and CCAs, to procure a minimum quantity of electricity products from eligible renewables energy resources, as defined, so that total kilowatt hours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030. (Public Utilities Code §399.15)
- Establishes the Electricity Supply Strategic Reliability Reserve Program (ESSRRP) and Fund at the DWR that continuously appropriates moneys in the fund to DWR for purposes of implementing projects, purchases, and contracts for the purchase of electricity from resources to support summer reliability. (Water Code §80700 et seq.)
This bill:
- Eliminates the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the DWR to procure resources from the facility as part of the central procurement function authorized by AB 1373 (E. Garcia, Chapter 367, Statutes of 2023).
- Incorporates chaptering amendments with AB 2369 (Rogers) related to changes to Section 454.52 of the Public Utilities Code to support procurement of energy-only resources within CPUC procurement orders and programmatic requirements.
Background
Authorizing DWR to provide a central procurement function. AB 1373 authorized DWR to procure eligible energy resources meeting specified criteria to be procured by DWR if the CPUC makes a request. Namely, the language prohibits resources that are derived from fossil fuels, or would increase dependence on fossil-fueled resources, and prohibit any resource that uses combustion (except if it is ancillary to the production of geothermal energy). AB 1373 also explicitly authorized DWR to procure pumped storage hydroelectricity resources that are 500 MW or less and have received state funding. The language at the time was intended to capture the San Vicente Reservoir project which received funding in the 2021 State Budget.
As part of the process to authorize DWR to procure eligible resources, the CPUC must determine that the resource is not under contract at sufficient levels to meet the state’s clean energy goals and has a construction and development lead time of at least five years. During passage of AB 1373, it was understood that, at a minimum, offshore wind, geothermal energy resources, and pumped hydroelectricity energy storage project at San Vicente Reservoir of up to 500 MW would be among the eligible resources DWR could procure.
Comments
Need for this bill. According to the author:
AB 2476 is designed to enhance the state’s existing central procurement program by permitting the procurement of pumped-storage hydro (PSH) as an eligible zero carbon resource available to the program. Under the initial program PSH was limited. PSH is a reliable, cost-effective, long-duration storage clean energy option that also diversifies the state’s energy resources.
CPUC request to DWR for central procurement function. Since AB 1373 was chaptered the central procurement function has been exercised only as the CPUC has made a request to DWR. In August 2024, the CPUC issued a decision (D. 24-08-064) as part of the IRP process, determining the need for centralized procurement of long lead-time resources. The decision aimed to make it easier to secure diverse clean energy resources through a central entity, such as the DWR. The decision determined a need for centralized procurement activity by DWR for long duration energy storage (12+ hours duration), long duration energy storage of multiple day duration, geothermal, and offshore wind (these amounts are noted in the table below). Subsequently, in February 2025, then-CPUC President Alice Reynolds sent a letter to DWR as a procurement request to DWR to initiate its central procurement function citing D. 24-08-064 and the authority provided by AB 1373, and the specific resources and timelines. The letter stated: “I expect DWR SWEO [Statewide Energy Office] will conduct solicitations and carefully evaluate the quality of the bids received, including cost containment and ratepayer risk provisions, and that DWR SWEO may procure in amounts between zero and the upper limits established in this decision [D.24-08-064].” The letter further encouraged DWR to follow the recommended timeline. There is ongoing work to determine how best to stand up the central procurement function which would then enable potential solicitations for energy storage (both multi-day and 12+ hours duration) later this year should DWR seek to procure the resources.
Resource Type | Maximum Quality | Solicitations Beginning in | Online By |
Long Duration Energy Storage: 12+ hours duration | 1 Gigawatt (GW) | 2026 | 2031-2037 |
Long Duration Energy Storage: multiple day duration | 1 GW | 2026 | 2031-2037 |
Geothermal | 1 GW | 2027 | 2031-2037 |
Offshore Wind | 7.6 GW | 2027 | 2035-2037 |
Desire to expand eligible projects. This bill would expand the list of eligible hydroelectric energy storage (pumped storage) projects that could be considered by DWR should it exercise the central procurement function. This bill would explicitly remove the requirements that only a pumped storage project that received state funding could be eligible, while retaining the 500 MW cap. In this regard, the San Vicente Reservoir project would no longer be the only project eligible for this procurement. The supporters of this bill include project proponents for at least two other existing pumped storage project efforts, Bison Peak (480 MW) in the Tehachapi Mountains and GreenGen’s Mokelumne Pumped Storage Project (400 MW) in Amador and Calaveras Counties. Other known projects that may become eligible, depending on their viability, are the Swan Lake North Pumped Storage Project (393 MW) in Klamath County and LEAPS project (500 MW) in Lake Elsinore in Riverside County. At the time AB 1373 was being considered, some stakeholders opposed the bill’s proposal to limit the generation resources eligible for central procurement by DWR. With regards to pumped storage, there were many concerns about making more controversial projects eligible – specifically a long-sought project, Eagle Mountain (1200 MW) pumped storage project near Joshua Tree National Park. Additionally, other resource types sought to be included among the eligible types of projects. This bill would expand the eligibility to other pumped storage projects, which could also invite additional efforts by stakeholders wishing to have other energy resources become eligible for DWR procurement.
Cost protections. Authorizing DWR to procure energy can have the unintended effect of reducing supply in the energy market and increasing prices overall (particularly in the currently constrained energy market). However, adding more eligible resources can also provide additional competition for DWR procurement should it be needed. When AB 1373 was being considered, there was much concern about the use of a central procurement function which could have unintended consequences of affecting the behavior of market participants, including LSEs, electric POUs, and generators, who may elect to delay procurement transactions so as to position themselves for procurement by DWR. Or behavior changes by project developers who might prefer the opportunity to negotiate a contract with DWR rather than cobbling contracts among LSEs. AB 1373 attempted to address these challenges by limiting resources to those noted above, including those with at least a five-year construction and development horizon – therefore a resource that is less likely to be procured in the current market. The bill also provided an added safeguard that required the CPUC to determine whether the procurement by DWR (including any bonds) is just and reasonable prior to the procurement, and if so, recoverable by a nonbypassable charge on customer’s electric utility bills. DWR procurement would be an additional costs on customers’ current electric utility bills, though it’s unclear to what extent these would be less than, or more than, what would otherwise be procured to meet the state’s clean energy and reliability goals. This bill does not alter these requirements.
Related/Prior Legislation
AB 1373 (E. Garcia, Chapter 367, Statutes of 2023) made numerous changes to electricity policy, most notably, authorized the DWR to serve as a central procurement entity to procure energy resources in order to help the state meet its renewable and zero-carbon energy resources and reliability goals should the CPUC identify a specific procurement need and make a request of DWR.
SB 123 (Committee on Budget, Chapter 52, Statutes of 2023) extended the date, from September 2022 to October 2023, by when electric IOUs may be reimbursed for above-market costs for imported energy and capacity products delivered or capable of being delivered to the state within the ESSRRP.
SB 124 (Committee on Budget, Chapter 53, Statutes of 2023) extended the date, from September 2022 to October 2023, by when electric IOUs may be reimbursed for above-market costs for imported energy and capacity products delivered or capable of being delivered to the state, clarified that DWR must present an investment plan to the CEC, rather than the contracts, and makes additional clarifying changes of the ESSRRP.
AB 205 (Committee on Budget, Chapter 61, Statutes of 2022) established the ESSRRP, among its many provisions.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) made additional changes to the ESSRRP, established the Voluntary Offshore Wind and Coastal Resources Protection Program, among its many energy-related provisions.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/19/26)
Rye Development, LLC (Source)
Agricultural Energy Consumers Association
EDF Power Solutions
GreenGenStorage LLC
OPPOSITION: (Verified 8/19/26)
None received
ARGUMENTS IN SUPPORT: EDF power solutions states:
PSH [pumped storage hydroelectricity] is proven technology deployed throughout the globe that provides reliable long duration energy storage that shifts and shapes load without emitting greenhouse gasses. According to the US Department of Energy, PSH comprises 88 percent of utility scale energy storage output, and 44 percent of nameplate capacity, in the United States. California is a world leader in clean energy innovation and deployment, including energy storage. Integrated resource planning efforts now reflect a growing need for energy storage with durations of 8 hours or more, reflecting a clear role for PSH. Despite its potential and proven reliability, current law effectively limits eligibility for DWR centralized procurement to one project. AB 2476 would make a minor change to statute to allow more PSH projects to qualify for potential procurement.
ASSEMBLY FLOOR: 77-0, 5/14/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Flora, Celeste Rodriguez
Prepared by: Nidia Bautista / E., U. & C. / (916) 651-4107
8/24/26 13:39:22
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 2476 |
THIRD READING
Bill No: AB 2476
Author: Ellis (R)
Amended: 4/27/26 in Assembly
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 16-0, 6/8/26
AYES: Allen, Ochoa Bogh, Archuleta, Arreguín, Ashby, Becker, Caballero, Dahle, Gonzalez, Grove, McNerney, Reyes, Richardson, Rubio, Strickland, Wahab
NO VOTE RECORDED: Hurtado
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/14/26 (Consent) - See last page for vote
SUBJECT: Electricity: integrated resource plans: Department of Water Resources: procurement
SOURCE: Rye Development, LLC
DIGEST:
This bill eliminates the requirement that a pumped storage hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the Department of Water Resources (DWR) to procure resources from the facility as part of the central procurement function.
ANALYSIS:
Existing law:
- Establishes and vests the California Public Utilities Commission (CPUC) with regulatory authority over public utilities, including electrical corporations. (Article 12 of the California Constitution)
- Establishes the DWR to manage the state’s water supply. (Water Code §100 et seq.)
- Requires the CPUC, in consultation with the California Independent System Operator (CAISO), to establish resource adequacy (RA) requirements for all load-serving entities (LSEs), including community choice aggregators (CCAs) and electric service providers (ESPs). Requires the RA program to achieve certain objectives, including maximizing the ability of CCAs to determine the generation resources used to serve their customers. (Public Utilities Code §380)
- Authorizes the CPUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. (Public Utilities Code §451)
- Requires the CPUC to identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy in a cost-effective manner as part of the integrated resource planning (IRP) process. (Public Utilities Code §454.51)
- Requires the CPUC to adopt a process for each electrical corporation, ESP, or CCA to file an IRP and a schedule for periodic updates to the plan, and to ensure that LSEs meet other specified requirements. (Public Utilities Code §454.52)
- Requires the CPUC to determine if there is a need for the procurement of eligible energy resources, requires the CPUC to specify the eligible energy resources that should be procured to meet that need, and authorizes the CPUC, within six months of making that determination, to request the DWR to procure those specified resources that meet the portfolio of resources, as specified. (Public Utilities Code §454.52 (a)(4)(B)(C))
- Authorizes the DWR to procure those resources specified by the CPUC request only before January 1, 2035. (Public Utilities Code §454.52 (a)(4)(D)(E))
- Provides that eligible energy resources procured by DWR meets all the following requirements:
- The resource directly supports attainment of the state’s goal to achieve 100% zero-carbon and renewable energy resources by 2045, without increasing reliance on the state’s dependence on any fossil fuel-based resources.
- The CPUC determines the resource to not be under contract at sufficient levels as shown in LSEs’ most recent individual IRPs submitted to and reviewed by the CPUC to achieve SB 100 (De León, Chapter 312, Statutes of 2018) goals.
- The resource has a construction and development lead time of at least five years.
- The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
- The resource does not use combustion to generate electricity (except ancillary and necessary to facility geothermal electricity generation). (Public Utilities Code §454.52 (h)(1))
- Authorizes a pumped hydroelectric facility to qualify as an eligible energy resource if it does not exceed 500 megawatts (MW) and has been appropriated funding by the state before January 1, 2023. (Public Utilities Code §454.52 (h)(2))
- Establishes the policy of the state 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. (Public Utilities Code §454.53)
- Establishes a renewables portfolio standard (RPS) and requires all retail sellers, including investor-owned utilities (IOUs), ESPs, and CCAs, to procure a minimum quantity of electricity products from eligible renewables energy resources, as defined, so that total kilowatt hours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030. (Public Utilities Code §399.15)
- Establishes the Electricity Supply Strategic Reliability Reserve Program (ESSRRP) and Fund at the DWR that continuously appropriates moneys in the fund to DWR for purposes of implementing projects, purchases, and contracts for the purchase of electricity from resources to support summer reliability. (Water Code §80700 et seq.)
This bill eliminates the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the DWR to procure resources from the facility as part of the central procurement function authorized by AB 1373 (E. Garcia, Chapter 367, Statutes of 2023).
Background
Authorizing DWR to provide a central procurement function. AB 1373 authorized DWR to procure eligible energy resources meeting specified criteria to be procured by DWR if the CPUC makes a request. Namely, the language prohibits resources that are derived from fossil fuels, or would increase dependence on fossil-fueled resources, and prohibit any resource that uses combustion (except if it is ancillary to the production of geothermal energy). AB 1373 also explicitly authorized DWR to procure pumped storage hydroelectricity resources that are 500 MW or less and have received state funding. The language at the time was intended to capture the San Vicente Reservoir project which received funding in the 2021 State Budget.
As part of the process to authorize DWR to procure eligible resources, the CPUC must determine that the resource is not under contract at sufficient levels to meet the state’s clean energy goals and has a construction and development lead time of at least five years. During passage of AB 1373, it was understood that, at a minimum, offshore wind, geothermal energy resources, and pumped hydroelectricity energy storage project at San Vicente Reservoir of up to 500 MW would be among the eligible resources DWR could procure.
Comments
Need for this bill. According to the author:
AB 2476 is designed to enhance the state’s existing central procurement program by permitting the procurement of pumped-storage hydro (PSH) as an eligible zero carbon resource available to the program. Under the initial program PSH was limited. PSH is a reliable, cost-effective, long-duration storage clean energy option that also diversifies the state’s energy resources.
CPUC request to DWR for central procurement function. Since AB 1373 was chaptered the central procurement function has been exercised only as the CPUC has made a request to DWR. In August 2024, the CPUC issued a decision (D. 24-08-064) as part of the IRP process, determining the need for centralized procurement of long lead-time resources. The decision aimed to make it easier to secure diverse clean energy resources through a central entity, such as the DWR. The decision determined a need for centralized procurement activity by DWR for long duration energy storage (12+ hours duration), long duration energy storage of multiple day duration, geothermal, and offshore wind (these amounts are noted in the table below). Subsequently, in February 2025, then-CPUC President Alice Reynolds sent a letter to DWR as a procurement request to DWR to initiate its central procurement function citing D. 24-08-064 and the authority provided by AB 1373, and the specific resources and timelines. The letter stated: “I expect DWR SWEO [Statewide Energy Office] will conduct solicitations and carefully evaluate the quality of the bids received, including cost containment and ratepayer risk provisions, and that DWR SWEO may procure in amounts between zero and the upper limits established in this decision [D.24-08-064].” The letter further encouraged DWR to follow the recommended timeline. There is ongoing work to determine how best to stand up the central procurement function which would then enable potential solicitations for energy storage (both multi-day and 12+ hours duration) later this year should DWR seek to procure the resources.
Resource Type | Maximum Quality | Solicitations Beginning in | Online By |
Long Duration Energy Storage: 12+ hours duration | 1 Gigawatt (GW) | 2026 | 2031-2037 |
Long Duration Energy Storage: multiple day duration | 1 GW | 2026 | 2031-2037 |
Geothermal | 1 GW | 2027 | 2031-2037 |
Offshore Wind | 7.6 GW | 2027 | 2035-2037 |
Desire to expand eligible projects. This bill would expand the list of eligible hydroelectric energy storage (pumped storage) projects that could be considered by DWR should it exercise the central procurement function. This bill would explicitly remove the requirements that only a pumped storage project that received state funding could be eligible, while retaining the 500 MW cap. In this regard, the San Vicente Reservoir project would no longer be the only project eligible for this procurement. The supporters of this bill include project proponents for at least two other existing pumped storage project efforts, Bison Peak (480 MW) in the Tehachapi Mountains and GreenGen’s Mokelumne Pumped Storage Project (400 MW) in Amador and Calaveras Counties. Other known projects that may become eligible, depending on their viability, are the Swan Lake North Pumped Storage Project (393 MW) in Klamath County and LEAPS project (500 MW) in Lake Elsinore in Riverside County. At the time AB 1373 was being considered, some stakeholders opposed the bill’s proposal to limit the generation resources eligible for central procurement by DWR. With regards to pumped storage, there were many concerns about making more controversial projects eligible – specifically a long-sought project, Eagle Mountain (1200 MW) pumped storage project near Joshua Tree National Park. Additionally, other resource types sought to be included among the eligible types of projects. This bill would expand the eligibility to other pumped storage projects, which could also invite additional efforts by stakeholders wishing to have other energy resources become eligible for DWR procurement.
Cost protections. Authorizing DWR to procure energy can have the unintended effect of reducing supply in the energy market and increasing prices overall (particularly in the currently constrained energy market). However, adding more eligible resources can also provide additional competition for DWR procurement should it be needed. When AB 1373 was being considered, there was much concern about the use of a central procurement function which could have unintended consequences of affecting the behavior of market participants, including LSEs, electric POUs, and generators, who may elect to delay procurement transactions so as to position themselves for procurement by DWR. Or behavior changes by project developers who might prefer the opportunity to negotiate a contract with DWR rather than cobbling contracts among LSEs. AB 1373 attempted to address these challenges by limiting resources to those noted above, including those with at least a five-year construction and development horizon – therefore a resource that is less likely to be procured in the current market. The bill also provided an added safeguard that required the CPUC to determine whether the procurement by DWR (including any bonds) is just and reasonable prior to the procurement, and if so, recoverable by a nonbypassable charge on customer’s electric utility bills. DWR procurement would be an additional costs on customers’ current electric utility bills, though it’s unclear to what extent these would be less than, or more than, what would otherwise be procured to meet the state’s clean energy and reliability goals. This bill does not alter these requirements.
Prior/Related Legislation
AB 1373 (E. Garcia, Chapter 367, Statutes of 2023) made numerous changes to electricity policy, most notably, authorized the DWR to serve as a central procurement entity to procure energy resources in order to help the state meet its renewable and zero-carbon energy resources and reliability goals should the CPUC identify a specific procurement need and make a request of DWR.
SB 123 (Committee on Budget, Chapter 52, Statutes of 2023) extended the date, from September 2022 to October 2023, by when electric IOUs may be reimbursed for above-market costs for imported energy and capacity products delivered or capable of being delivered to the state within the ESSRRP.
SB 124 (Committee on Budget, Chapter 53, Statutes of 2023) extended the date, from September 2022 to October 2023, by when electric IOUs may be reimbursed for above-market costs for imported energy and capacity products delivered or capable of being delivered to the state, clarified that DWR must present an investment plan to the CEC, rather than the contracts, and makes additional clarifying changes of the ESSRRP.
AB 205 (Committee on Budget, Chapter 61, Statutes of 2022) established the ESSRRP, among its many provisions.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) made additional changes to the ESSRRP, established the Voluntary Offshore Wind and Coastal Resources Protection Program, among its many energy-related provisions.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/23/26)
Rye Development, LLC (Source)
Agricultural Energy Consumers Association
EDF Power Solutions
GreenGenStorage LLC
OPPOSITION: (Verified 6/23/26)
None received
ARGUMENTS IN SUPPORT: EDF power solutions states:
PSH [pumped storage hydroelectricity] is proven technology deployed throughout the globe that provides reliable long duration energy storage that shifts and shapes load without emitting greenhouse gasses. According to the US Department of Energy, PSH comprises 88 percent of utility scale energy storage output, and 44 percent of nameplate capacity, in the United States. California is a world leader in clean energy innovation and deployment, including energy storage. Integrated resource planning efforts now reflect a growing need for energy storage with durations of 8 hours or more, reflecting a clear role for PSH. Despite its potential and proven reliability, current law effectively limits eligibility for DWR centralized procurement to one project. AB 2476 would make a minor change to statute to allow more PSH projects to qualify for potential procurement.
ASSEMBLY FLOOR: 77-0, 5/14/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Flora, Celeste Rodriguez
Prepared by: Nidia Bautista / E., U. & C. / (916) 651-4107
6/24/26 16:35:07
**** END ****
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Benjamin Allen, Chair
2025 - 2026 Regular
Bill No: Hearing Date: 6/8/2026
Author: | |||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill eliminates the requirement that a pumped storage hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the Department of Water Resources (DWR) to procure resources from the facility as part of the central procurement function.
ANALYSIS:
Existing law:
- Establishes and vests the California Public Utilities Commission (CPUC) with regulatory authority over public utilities, including electrical corporations. (Article 12 of the California Constitution)
- Establishes the DWR to manage the state’s water supply. (Water Code §100 et seq.)
- Requires the CPUC, in consultation with the California Independent System Operator (CAISO), to establish resource adequacy (RA) requirements for all load-serving entities (LSEs), including community choice aggregators (CCAs) and electric service providers (ESPs). Requires the RA program to achieve certain objectives, including maximizing the ability of CCAs to determine the generation resources used to serve their customers. (Public Utilities Code §380)
- Authorizes the CPUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. (Public Utilities Code §451)
- Requires the CPUC to identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy in a cost-effective manner as part of the integrated resource planning (IRP) process. (Public Utilities Code §454.51)
- Requires the CPUC to adopt a process for each electrical corporation, ESP, or CCA to file an IRP and a schedule for periodic updates to the plan, and to ensure that LSEs meet other specified requirements. (Public Utilities Code §454.52)
- Requires the CPUC to determine if there is a need for the procurement of eligible energy resources, requires the CPUC to specify the eligible energy resources that should be procured to meet that need, and authorizes the CPUC, within six months of making that determination, to request the DWR to procure those specified resources that meet the portfolio of resources, as specified. (Public Utilities Code §454.52 (a)(4)(B)(C))
- Authorizes the DWR to procure those resources specified by the CPUC request only before January 1, 2035. (Public Utilities Code §454.52 (a)(4)(D)(E))
- Provides that eligible energy resources procured by DWR meets all the following requirements:
- The resource directly supports attainment of the state’s goal to achieve 100% zero-carbon and renewable energy resources by 2045, without increasing reliance on the state’s dependence on any fossil fuel-based resources.
- The CPUC determines the resource to not be under contract at sufficient levels as shown in LSEs’ most recent individual IRPs submitted to and reviewed by the CPUC to achieve SB 100 (De León, Chapter 312, Statutes of 2018) goals.
- The resource has a construction and development lead time of at least five years.
- The resource does not generate electricity using fossil fuels or fuels derived from fossil fuels.
- The resource does not use combustion to generate electricity (except ancillary and necessary to facility geothermal electricity generation). (Public Utilities Code §454.52 (h)(1))
- Authorizes a pumped hydroelectric facility to qualify as an eligible energy resource if it does not exceed 500 megawatts (MW) and has been appropriated funding by the state before January 1, 2023. (Public Utilities Code §454.52 (h)(2))
- Establishes the policy of the state 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. (Public Utilities Code §454.53)
- Establishes a renewables portfolio standard (RPS) and requires all retail sellers, including investor-owned utilities (IOUs), ESPs, and CCAs, to procure a minimum quantity of electricity products from eligible renewables energy resources, as defined, so that total kilowatt hours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030. (Public Utilities Code §399.15)
- Establishes the Electricity Supply Strategic Reliability Reserve Program (ESSRRP) and Fund at the DWR that continuously appropriates moneys in the fund to DWR for purposes of implementing projects, purchases, and contracts for the purchase of electricity from resources to support summer reliability. (Water Code §80700 et seq.)
This bill eliminates the requirement that a pump hydroelectric facility be directly appropriated funding by the state before January 1, 2023, in order for the DWR to procure resources from the facility as part of the central procurement function authorized by AB 1373 (E. Garcia, Chapter 367, Statutes of 2023).
Background
Authorizing DWR to provide a central procurement function. AB 1373 authorized DWR to procure eligible energy resources meeting specified criteria to be procured by DWR if the CPUC makes a request. Namely, the language prohibits resources that are derived from fossil fuels, or would increase dependence on fossil-fueled resources, and prohibit any resource that uses combustion (except if it is ancillary to the production of geothermal energy). AB 1373 also explicitly authorized DWR to procure pumped storage hydroelectricity resources that are 500 MW or less and have received state funding. The language at the time was intended to capture the San Vicente Reservoir project which received funding in the 2021 State Budget.
As part of the process to authorize DWR to procure eligible resources, the CPUC must determine that the resource is not under contract at sufficient levels to meet the state’s clean energy goals and has a construction and development lead time of at least five years. It was understood that, at a minimum, offshore wind, geothermal energy resources, and pumped hydroelectricity energy storage project at San Vicente Reservoir of up to 500 MW would be among the eligible resources DWR could procure.
Comments
Need for this bill. According to the author:
AB 2476 is designed to enhance the state’s existing central procurement program by permitting the procurement of pumped-storage hydro (PSH) as an eligible zero carbon resource available to the program. Under the initial program PSH was limited. PSH is a reliable, cost-effective, long-duration storage clean energy option that also diversifies the state’s energy resources.
CPUC request to DWR. Since AB 1373 was chaptered the central procurement function has been exercised only as the CPUC has made a request to DWR. In August 2024, the CPUC issued a decision (D. 24-08-064) as part of the IRP process, determining the need for centralized procurement of long lead-time resources. The decision aimed to make it easier to secure diverse clean energy resources through a central entity, such as the DWR. The decision determined a need for centralized procurement activity by DWR for long duration energy storage (12+ hours duration), long duration energy storage of multiple day duration, geothermal, and offshore wind (these amounts are noted in the table below). Subsequently, in February 2025, then-CPUC President Alice Reynolds sent a letter to DWR as a procurement request to DWR to initiate its central procurement function citing D. 24-08-064 and the authority provided by AB 1373, and the specific resources and timelines. The letter stated: “I expect DWR SWEO [Statewide Energy Office] will conduct solicitations and carefully evaluate the quality of the bids received, including cost containment and ratepayer risk provisions, and that DWR SWEO may procure in amounts between zero and the upper limits established in this decision [D.24-08-064].” The letter further encouraged DWR to follow the recommended timeline. There is ongoing work to determine how best to stand up the central procurement function which would then enable potential solicitations for energy storage (both multi-day and 12+ hours duration) later this year should DWR seek to procure the resources.
Resource Type | Maximum Quality | Solicitations Beginning in | Online By |
Long Duration Energy Storage: 12+ hours duration | 1 Gigawatt (GW) | 2026 | 2031-2037 |
Long Duration Energy Storage: multiple day duration | 1 GW | 2026 | 2031-2037 |
Geothermal | 1 GW | 2027 | 2031-2037 |
Offshore Wind | 7.6 GW | 2027 | 2035-2037 |
Desire to expand eligible projects. This bill would expand the list of eligible hydroelectric energy storage (pumped storage) projects that could be considered by DWR should it exercise the central procurement function. This bill would explicitly remove the requirements that only a pumped storage project that received state funding could be eligible, while retaining the 500 MW cap. In this regard, the San Vicente Reservoir project would no longer be the only project eligible for this procurement. The supporters of this bill include project proponents for at least two other existing pumped storage project efforts, Bison Peak (480 MW) in the Tehachapi Mountains and GreenGen’s Mokelumne Pumped Storage Project (400 MW) in Amador and Calaveras Counties. Other known projects that may become eligible, depending on their viability, are the Swan Lake North Pumped Storage Project (393 MW) in Klamath County and LEAPS project (500 MW) in Lake Elsinore in Riverside County. At the time AB 1373 was being considered, some stakeholders opposed the bill’s proposal to limit the generation resources eligible for central procurement by DWR. With regards to pumped storage, there were many concerns about making more controversial projects eligible – specifically a long-sought project, Eagle Mountain (1200 MW) near Joshua Tree National Park. Additionally, other resource types sought to be included among the eligible types of projects. This bill would open up the eligibility to other pumped storage projects but could also invite additional efforts by other resources to become eligible for DWR procurement.
Cost protections. Authorizing DWR to procure energy can have the unintended effect of reducing supply in the energy market and increasing prices overall (particularly in the currently constrained energy market). However, adding more eligible resources can also provide additional competition for DWR procurement should it be needed. When AB 1373 was being considered, there was much concern about the use of a central procurement function which could have unintended consequences of affecting the behavior of market participants, including LSEs, electric POUs, and generators, who may elect to delay procurement transactions so as to position themselves for procurement by DWR. Or by project developers who might prefer the opportunity to negotiate a contract with DWR rather than cobbling contracts among LSEs. AB 1373 attempted to address these challenges by limiting resources to those noted above, including those with at least a five-year construction and development horizon – therefore a resource that is less likely to be procured in the current market. The bill also provided an added safeguard that required the CPUC to determine whether the procurement by DWR (including any bonds) is just and reasonable prior to the procurement, and if so, recoverable by a nonbypassable charge on customer’s electric utility bills. DWR procurement would be additional costs on customers’ current electric utility bills, though it’s unclear to what extent these would be less than, or more than, what would otherwise be procured to meet the state’s clean energy and reliability goals. This bill does not alter these requirements.
Prior/Related Legislation
AB 1373 (E. Garcia, Chapter 367, Statutes of 2023) made numerous changes to electricity policy, most notably, authorized the DWR to serve as a central procurement entity to procure energy resources in order to help the state meet its renewable and zero-carbon energy resources and reliability goals should the CPUC identify a specific procurement need and make a request of DWR.
SB 123 (Committee on Budget, Chapter 52, Statutes of 2023) extended the date, from September 2022 to October 2023, by when electric IOUs may be reimbursed for above-market costs for imported energy and capacity products delivered or capable of being delivered to the state within the ESSRRP.
SB 124 (Committee on Budget, Chapter 53, Statutes of 2023) extended the date, from September 2022 to October 2023, by when electric IOUs may be reimbursed for above-market costs for imported energy and capacity products delivered or capable of being delivered to the state, clarified that DWR must present an investment plan to the CEC, rather than the contracts, and makes additional clarifying changes of the ESSRRP.
AB 205 (Committee on Budget, Chapter 61, Statutes of 2022) established the ESSRRP, among its many provisions.
AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) made additional changes to the ESSRRP, established the Voluntary Offshore Wind and Coastal Resources Protection Program, among its many energy-related provisions.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
Rye Development, LLC (Sponsor)
Agricultural Energy Consumers Association
EDF Power Solutions
GreenGenStorage LLC
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: EDF power solutions states:
PSH [pumped storage hydroelectricity] is proven technology deployed throughout the globe that provides reliable long duration energy storage that shifts and shapes load without emitting greenhouse gasses. According to the US Department of Energy, PSH comprises 88 percent of utility scale energy storage output, and 44 percent of nameplate capacity, in the United States. California is a world leader in clean energy innovation and deployment, including energy storage. Integrated resource planning efforts now reflect a growing need for energy storage with durations of 8 hours or more, reflecting a clear role for PSH. Despite its potential and proven reliability, current law effectively limits eligibility for DWR centralized procurement to one project. AB 2476 would make a minor change to statute to allow more PSH projects to qualify for potential procurement.
-- END --
Date of Hearing: May 6, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2476
Author:(Ellis) – As Amended Ver:April 27, 2026
Policy Committee: | Utilities and Energy | Vote: | 18 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill modifies existing law so that so that any pumped hydroelectric resource that does not exceed a capacity of 500 megawatts is eligible for procurement by the Department of Water Resources (DWR) through DWR’s centralized procurement authority.
FISCAL EFFECT:
Minor state costs if any.
COMMENTS:
In 2023, the Legislature authorized the California Public Utilities Commission (CPUC) to request DWR to exercise DWR’s central procurement function, in existing law, to procure eligible long lead-time energy resources, until January 1, 2035. (See AB 1373 (E. Garcia), Chapter 367, Statutes of 2023.) The law limits DWR’s authority to the procurement of only certain resources, including resources from a pump hydroelectric facility if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023. This limitation, in effect, seems to prohibit DWR from using its central procurement authority to procure electricity resources from any pumped-storage hydro resource.
The author describes this bill as “designed to enhance the state’s existing central procurement program by permitting the procurement of pumped-storage hydro…as an eligible zero carbon resource available to the program” and characterizes pumped-storage hydro as “a reliable, cost-effective long-duration, clean energy opportunity that diversifies the state’s options.” Two entities, energy project developers EDF power solutions North America and Rye Development, each write in support of the bill. Neither developer mentions a specific pumped-storage hydro project, existing or conceptual, that might benefit from the change in law but, undoubtedly, each has a project or projects in mind.
Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081
Date of Hearing: April 22, 2026
ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY
Cottie Petrie-Norris, Chair
ABPCA Bill Id:AB 2476 (
Author:Ellis) – As Introduced Ver:February 20, 2026
SUBJECT: Electricity: integrated resource plans: Department of Water Resources: procurement
SUMMARY: Expands eligibility for the Department of Water Resources’ (DWR) central procurement entity (CPE) function to include any pumped storage facility at or below 500 megawatts (MWs) that is exempt from Federal Energy Regulatory Commission (FERC) licensing.
EXISTING LAW:
- Defines “load-serving entities” (LSE) as investor-owned utilities (IOUs), electric service providers (ESPs), and community choice aggregators (CCAs). (Public Utilities Code § 380 (k))
- Requires retail sellers and publicly owned utilities to increase purchases of renewable energy such that at least 60% of retail sales are procured from eligible renewable energy resources by December 31, 2030. This is known as the Renewables Portfolio Standard, or RPS. (Public Utilities Code § 399.11 et seq.)
- Establishes the policy that all of the state's retail electricity be supplied with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, for a total of 100% clean energy. Requires the California Public Utilities Commission (CPUC), in consultation with the California Energy Commission (CEC), California Air Resources Board (CARB), and all California balancing authorities, to issue a joint report to the Legislature by January 1, 2021, reviewing and evaluating the 100% clean energy policy. (Public Utilities Code § 454.53)
- Requires the CPUC to adopt a process for each LSE to file an integrated resource plan (IRP) and a schedule for periodic updates to the plan to ensure that LSEs accomplish specified objectives. Requires each LSE to prepare and file an IRP consistent with those objectives on a time schedule directed by the CPUC and subject to CPUC review. (Public Utilities Code § 454.52)
- Requires that the IRP of each LSE contribute to a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy resources in a cost-effective manner, meets the emissions reduction targets for greenhouse gases (GHG) established by CARB for the electricity sector, and prevents cost shifting among LSEs. (Public Utilities Code § 454.54)
- Requires the CPUC, on or before September 1, 2024, and consistent with the IRP process and schedule, to determine if there is a need for the procurement of eligible energy resources, requires the CPUC to specify the eligible energy resources that should be procured to meet that need, and authorizes the CPUC, within six months of making that determination, to request the DWR to procure those specified resources that meet the portfolio of resources. (Public Utilities Code § 454.52 (a)(4))
- Authorizes DWR to procure the specified resources if DWR elects to do so, before January 1, 2035. (Public Utilities Code § 454.52 (a)(4)(D)(i))
- Defines eligible resources for purposes of the CPE to be only new resources that (Public Utilities Code § 454.52 (h)(1)):
- Directly supports attainment of state clean energy goals without increasing dependence on fossil fuel.
- Are determined by the CPUC to not be under contract at sufficient levels in LSEs’ IRPs.
- Have a construction and development timeline of at least 5 years.
- Does not generate electricity using fossil fuels or fuels derived from fossil fuels.
- Does not use combustion to generate electricity, unless that combustion use is ancillary and necessary to facilitate geothermal electricity generation.
- Makes eligible for CPE treatment resources from a pump hydroelectric facility if the pump hydroelectric facility does not exceed 500 megawatts and has been directly appropriated funding by the state before January 1, 2023. (Public Utilities Code § 454.52 (h)(2))
- Establishes the Eligible Energy Central Procurement Fund and continuously appropriates money in the fund to the DWR for procurement by DWR as the central procurement entity. Requires that all monies collected by electric IOUs, ESPs, CCAs, and electric POUs and remitted to the DWR for eligible energy resources, and all moneys paid directly or indirectly to or for the account of the DWR for any sale, exchange, transfer, or disposition of those resources, be deposited into the fund. (Water Code §§ 80810, et seq.)
- Authorizes DWR, upon determining that it is necessary or desirable to issue bonds to support activities for the procurement of eligible energy resources, to issue bonds for purposes of financing the procurement of those resources supporting the fund and other related expenses incurred by the DWR. (Water Code § 80840)
- Establishes a sunset of January 1, 2035, by when DWR’s authority to contract for electrical power ceases. (Water Code §§ 80820, 80850)
FISCAL EFFECT: Unknown. This bill is keyed fiscal and will be referred to the Assembly Committee on Appropriations for its review.
BACKGROUND:
DWR’s CPE – AB 1373 (E. Garcia, Chapter 367, Statutes of 2023) authorized the CPUC to request that DWR act as a CPE to conduct procurement of certain eligible long lead-time resources until January 1, 2035. Per statute, the CPUC is required to make an initial need determination by September 1, 2024, for procurement by DWR of long lead-time resources over and above those shown in LSEs’ integrated resource plans. If a need is identified, the CPUC must make a request to DWR to exercise its CPE mechanism within six months. The CPUC must allocate the costs and benefits of any procurement conducted by DWR.
Statute authorizes DWR to only procure “eligible energy resources,” limited to resources meeting specified criteria. Namely, statute prohibits resources that are derived from fossil fuels, or would increase dependence on fossil-fueled resources, or any resource that uses combustion (except if it is ancillary to the production of geothermal energy). In the case of pumped storage hydroelectricity, the statutory intent seems to be to only capture San Vicente Reservoir project, which received funding in the 2021 State Budget. Additionally, the CPUC must determine that the resource is not under contract at sufficient levels by LSEs and has a construction and development lead time of at least five years. As such, statute does not explicitly call out every eligible resource but attempts to prohibit and require particular attributes. At a minimum, offshore wind, geothermal energy, and pumped hydroelectricity energy storage under 500 MW would be among the eligible resources DWR could procure.
In 2024, after completing its assessment,[1] the CPUC determined a need to use the CPE function to procure up to 7,600 MWs of offshore wind energy, up to 1,000 MWs of geothermal energy, up to 1,000 MWs of multi-day long-duration energy storage, and up to 1,000 MWs of long-duration energy storage facilities with a longer, 12+ hour discharge period.[2] In February 2025, the CPUC officially requested that DWR initiate its role in this CPE function and begin the process of soliciting resources.[3] This work is ongoing and is expected to result in the first solicitation in late 2026, with other solicitations to follow. The first solicitation is scheduled to be long duration energy storage, both multi-day and 12+ hour duration.
FERC licensure of projects – The Federal Energy Regulatory Commission (FERC) is the primary federal authority responsible for licensing non-federal hydroelectric projects in the United States, a responsibility established under the Federal Power Act.[4] This includes pumped storage facilities, which FERC regulates as hydroelectric projects given their use of water to generate and store electricity. FERC licensing imposes requirements related to environmental review, water rights, land use, and operational conditions, and the process can be lengthy and expensive. However, the Federal Power Act exempts certain smaller projects from full licensing requirements – namely, those at or below 10MWs (for small hydropower projects) or 40MWs (for existing conduit facilities)[5] – as well as projects that qualify for exemption based on their size and the nature of the waterway involved. Projects that fall outside FERC's licensing jurisdiction, whether due to size, location, or facility type, are generally subject instead to state regulatory authority.
Bison Peak – the Bison Peak Pumped Storage Project is a proposed closed-loop pumped hydroelectric facility located near Tehachapi, CA. It consists of (1) an upper reservoir with a storage capacity of 1,300 acre-feet created by construction of a 35-foot high ring dam and (2) one of three alternatives for a lower reservoir and powerhouse. The project developer stated to FERC in 2018 that the project would use either groundwater or water obtained from the Tehachapi-Cummings County Water District, which receives water from the State Water Project, for initial fill of the reservoirs. In August 2018, FERC ruled on the Bison Peak Project’s declaration to be exempted from FERC licensure, noting if Bison Peak only uses groundwater it is exempt, but if it uses water from the Tehachapi-Cummings County Water District it must seek a FERC license.[6]
COMMENTS:
- Author’s Statement. According to the author, “AB 2476 is designed to enhance the state’s existing central procurement program by permitting the procurement of pumped-storage hydro (PSH) as an eligible zero carbon resource available to the program. Under the initial program, pumped-storage hydro was limited for procurement. This bill seeks to expand PSH to additional projects under development in the state. PSH is a reliable, cost-effective long-duration, clean energy opportunity that diversifies the state’s options.”
- Purpose of Bill. This bill addresses a limitation in the existing eligibility criteria for pumped hydroelectric facilities under DWR's CPE function. Under current law, pumped hydroelectric resources are only eligible for CPE treatment if they do not exceed 500 MWs and were directly appropriated state funding before January 1, 2023 – a narrow category that effectively limits eligibility to the San Vicente Reservoir project, which received funding in the 2021 State Budget. This bill adds to the list of eligible projects any pumped storage facility at or below 500 MWs that is exempt from FERC licensing. The practical effect is to broaden the pool of pumped hydroelectric projects DWR can procure, allowing more facilities to qualify; though the objective of the bill’s sponsor is to ensure the Bison Peak Pumped Storage Project near Tehachapi, CA, qualifies. Given that pumped storage is a key tool for storing renewable energy and managing grid reliability, this expansion of CPE project eligibility may be warranted to enable DWR to pursue a wider range of storage projects before its central procurement authority expires in 2035.
- Resources Eligible Under this Bill. A central point of engagement since the creation of DWR’s CPE authority is around expanding the eligible project types. While no procurement has occurred to date, and DWR’s existing procurement schedule does not anticipate any solicitations even beginning until later this year, project developers routinely seek opportunities for inclusion in the CPE. Developers likely prefer DWR CPE over the private market primarily because it offers long-term, state-backed contracts that provide revenue certainty and eliminate offtake risk – all advantages that are difficult to replicate privately, particularly for capital-intensive projects like pumped storage with long development timelines. DWR's bonding authority can also lower the cost of capital compared to private financing, and state procurement may help advance projects that would otherwise struggle to attract private investment on viable terms.
In the case of Bison Peak, the project has been in the feasibility phase for over a decade since it originally filed for a preliminary permit at FERC in early 2015.[7] While awarded a queue position at CAISO in April 2021, the project withdrew its position in early 2023.[8] The committee is unaware of any offtake agreements currently contemplated between Bison Peak and LSEs.
This bill expands the opportunity for pumped hydroelectric procurement by DWR to include projects that are both at or below 500 MWs and exempt from FERC licensure. According to DWR, a license from FERC is required for any hydroelectric project that 1) is a non-federal project; 2) is located on navigable waters of the U.S.;[9] 3) occupies public lands or reservations of the U.S.; 4) utilizes surplus water or waterpower from a federal dam; or 5) affects the interests of interstate or foreign commerce. So, the exemption under this bill would apply to any pumped hydroelectric project that doesn’t fit these criteria. In other words, a project that uses local water supply and is on non-federal land and doesn’t affect commerce, such as Bison Peak, would likely meet these criteria.
The committee is currently aware of at least 16 proposed pumped hydroelectric projects in various development stages in CAISO’s territory, as detailed in the table below. Of these 16, six are at or under the 500 MW threshold in existing statute (light orange) and only two of these six (darker orange) are proposing to use groundwater as the likely water source. The two projects are Bison Peak, as detailed above, and Swan Lake North Pumped Storage, a proposed project on the Oregon side of the Oregon-California border. This would suggest that the proposed eligibility expansion in this bill, as written, would only benefit the Bison Peak project, although any new pumped storage projects that are also under 500 MW and utilize groundwater may also qualify.
- Current Statutory Limitations on Pumped Storage may be too Narrow. This bill proposes expanding the list of eligible projects DWR may procure through its CPE function. It does not mandate procurement of these projects, which must still go through rigorous needs assessments and procurement and contract review by the CPUC. As noted above, the CPUC has already requested DWR procure up to 1,000 MWs of long duration energy storage. While pumped hydroelectric storage is one type of long duration energy storage, it is by far the oldest, most well-known technology. By limiting project eligibility to only one (as is the case in existing law) or two (as is the case under this bill) pumped hydroelectric facilities, the statute constrains the options DWR may consider in selecting projects that best serve the state’s energy portfolio needs.
Expanding the pool of eligible projects introduces competitive pressure that might otherwise be absent in current statute. Generally, when only one or two developers meet the eligibility criteria, those developers hold significant market power and have little incentive to offer favorable contract terms. Broadening eligibility to more pumped storage projects may enable genuine competition, rather than forcing DWR to negotiate from a position of limited alternatives.
Potential FERC Project Info for Identified Area[10] | |||||||
Potential Pumped Storage Site (FERC Application Name) | FERC Project Number | State | City | County | Expected MWs | Probable Water Source (Staff Assessment) | Interconnection |
Eagle_Mountain | P-13123 | CA | Eagle Mountain | Riverside | 1,300 | Ground Water (Low Prioritization) | In a queue (Red Bluff) |
Swan Lake North Pumped Storage | P-13318 | OR | Altamont | Klamath | 393 | Ground Water (Low Prioritization) | In a queue (Malin) |
LEAPS | P-14227 | CA | Lake Elsinore | Riverside | 500 | Existing off-stream reservoir | In a queue (Alberhill) |
San_Vicente | P-14642 | CA | Poway | San Diego | 500 | Existing off-stream reservoir | Sycamore Canyon 230 kV |
Mokulumne Pumped Storage | P-14796 | CA | Jackson | Amador and Calaveras | 400 | Existing on-stream reservoir | In a queue (Bellota) |
Bison_Peak | P-14850 | CA |
| Kern | 480 | Ground Water (Low Prioritization) | *was* in a queue (Windhub 230 kV) |
Tehachapi Pumped Storage | P-15104 | CA | Lebec | Kern | 1,000 | Ground Water (Low Prioritization) | Bailey 220 kV |
Nacimiento Pumped Storage | P-15269 | CA | Oak Shores | San Luis Obispo | 1,500 | Existing on-stream reservoir | Templeton 230 kV |
Twitchell Pumped Storage | P-15271 | CA | Santa Maria | San Luis Obispo, Santa Barbara | 600 | Existing on-stream reservoir | Mesa 230 kV |
Whale Rock Pumped Storage | P-15272 | CA | Cayucos | San Luis Obispo | 600 | Existing off-stream reservoir | New sub (Morro-Solar or Morro-Diablo 230 kV) |
Vandenberg Pumped Storage | P-15284 | CA | Vandenburg | Santa Barbara | 1,351 | Ocean | Lompoc Substation |
Haiwee Pumped Storage | P-15307 | CA | Olancha | Inyo | 1,600 | Existing on-stream reservoir | Windhub |
MQR Pumped Storage | P-15312 | CA | Tracy | Alameda | 280 | Existing off-stream reservoir | Tesla 230 kV |
Salt Springs Pumped Storage | P-15343 | CA | Mokelumne Hill | Calaveras | 2,000 | Existing on-stream reservoir | Bellota 230 kV |
Isabella Pumped Storage | P-15306 | CA | Lake Isabella | Kern | 2,000 | Existing on-stream reservoir | Magunden 115 kV |
Maxwell Pumped Storage | P-15345 | CA | Rosamond | Kern | 3,600 | Existing off-stream reservoir | Whirlwind |
Indeed, the CPUC acknowledged this possibility in its decision determining the need for centralized procurement, where the CPUC notes:
“However, in response to parties’ comments on the proposed decision, we do make some provisions to allow some commercialized technologies, including conventional geothermal and PSH [pumped storage], to compete in some categories of procurement authorized herein, because these technologies face barriers to being contracted in the amounts necessary to meet our long-term GHG emissions goals and resource diversity objectives, similar to the emerging technologies identified. In addition, allowing some competition by commercialized technologies can serve to keep costs lower for ratepayers overall.” (emphasis mine)[11]
Therefore, limiting eligibility to projects at or below 500 MWs, without additional restrictions on FERC licensing status or prior state funding, may give DWR more flexibility to identify and procure the most viable pumped storage projects available. Given that pumped storage is a critical tool for integrating renewable energy and ensuring grid reliability, and given that DWR's procurement authority expires in 2035, maximizing the eligible project pool now gives the state the best chance of advancing viable storage capacity within that time. As such, the committee recommends striking both the amendment proposed in this bill related to a FERC exemption and the limitation in existing statute related to direct state appropriation, so that the only limitation for eligible pumped hydroelectric resources for DWR CPE procurement is a cap of 500 MWs.
- Prior Legislation.
AB 1373 (Garcia) authorizes DWR to act as a CPE until January 1, 2035. Requires the CPUC and the CEC, as applicable, to assess capacity payments for LSEs and POUs that are deficient in their reliability obligations until June 30, 2027. Finally, grants the CPUC additional enforcement and subsequent penalty authority over the LSEs' IRPs. Status: Chapter 367, Statutes of 2023.
AB 1538 (Muratsuchi, 2023) establishes an incentive program, the Clean Energy Reliability Program, to pay LSEs a specified amount for the procurement of eligible resources that exceed the LSEs’ procurement targets as set by the CPUC. Status: Died – Assembly Committee on Appropriations.
AB 1161 (E. Garcia, 2021) would have required DWR to procure newly developed eligible renewable energy resources or zero-carbon resources, and energy storage associated with those resources, in an amount that satisfies 100% of the electricity procured to serve all state agencies by December 31, 2030. Status: Died – Assembly Committee on Utilities and Energy.
AB 56 (E. Garcia, 2019) would have required the CPUC to empower the CAEATFA to undertake backstop procurement of electricity that would otherwise be performed by an electrical corporation to meet state resource adequacy, integrated resource planning, and renewable portfolio standard goals not satisfied by retail sellers or load-serving entities. Status: Died – Senate Committee on Energy, Utilities, and Communications.
SB 100 (De León) established the 100 Percent Clean Energy Act of 2018 which increases the RPS requirement from 50% by 2030 to 60%, and creates the policy of planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100% clean energy. Status: Chapter 312, Statutes of 2018.
REGISTERED SUPPORT / OPPOSITION:
Support
Rye Development, LLC (Sponsor)
Agricultural Energy Consumers Association
EDF Power Solutions
Opposition
None on file.
Analysis Prepared by: Laura Shybut / U. & E. / (916) 319-2083
CPUC, ALJ Ruling Seeking Comments on Need and Process for Centralized Procurement of Specified Long Lead-time Resources, R. 20-05-003; April 26, 2024. ↑
D.24-08-064, Decision Determining Need for Centralized Procurement of Long Lead-Time Resources, issued August 29, 2024, in Rulemaking 20-05-003. ↑
https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/integrated-resource-plan-and-long-term-procurement-plan-irp-ltpp/ab1373/cpuc-ab-1373-procurement-request_dwr.pdf ↑
16 U.S.C. § 791, et seq. ↑
https://www.ferc.gov/licensing/exemptions-licensing ↑
164 FERC ¶ 62,057 https://www.federalregister.gov/documents/2018/01/10/2018-00282/covington-mountain-hydro-llc-notice-of-preliminary-permit-application-accepted-for-filing-and ↑
https://www.federalregister.gov/documents/2015/04/28/2015-09840/bison-peak-pumped-storage-llc-notice-of-preliminary-permit-application-accepted-for-filing-and ↑
https://www.interconnection.fyi/project/caiso-2086 ↑
https://www.ecfr.gov/current/title-33/section-329.4 ↑
Compiled data as of August 2025 from various CPUC filings in the Integrated Resource Planning documents, courtesy of CPUC/CAISO ↑
Pg. 41, CPUC, D. 24-08-064, “Decision Determining Need for Centralized Procurement of Long Lead-time Resources,” in R. 20-05-003, issued August 29, 2024. ↑
Discussed in Hearing
1MIN
Assembly Floor
28SEC
Senate Floor
1MIN
Senate Floor
8MIN
Senate Standing Committee on Energy, Utilities and Communications
Bill Author
Bill Co-Author(s):