Electricity: energy storage: energy-only resources.

Added conditional incorporation of AB 2476 changes to Section 454.52, operative only if both bills are enacted and AB 2369 is enacted last

Added conditional incorporation of AB 2111 changes to Section 454.57, operative only if both bills are enacted and AB 2369 is enacted last

New provision (subdivision (f) of 454.52) bars the PUC from including Diablo Canyon Unit 1 energy or capacity in integrated resource plan portfolios after November 1, 2024, and Unit 2 after August 26, 2025

Section 454.57 language changed from requiring the PUC and Energy Commission to 'identify cost-effective opportunities to increase the reliability contribution or mitigate congestion of planned or existing energy-only resources through transmission capacity expansions' (as part of annual projections) to a standalone requirement to 'identify cost-effective opportunities to enable planned or operating energy-only resources to obtain deliverability through transmission capacity expansions'

New provision (subdivision (g) of 454.52) requires all resource attributes from thermal powerplants using nuclear fission technology not constructed in the 21st century to be retired on January 1, 2031

New subdivision (h) of 454.52 establishes criteria for a resource to be eligible for Department of Water Resources central procurement: must support clean energy goals without increasing fossil fuel dependence, must not already be sufficiently contracted, must have at least five years construction lead time, must not use fossil fuels, and must not use combustion except ancillary geothermal

The bill structure changed from adding a single paragraph (5) to Section 454.52(a) to a full rewrite of the entire section as SEC. 1.5, reflecting the incorporation of AB 2476's broader changes

Section 454.52(h)(2) removed the requirement that a pump hydroelectric facility must have 'directly appropriated funding by the state before January 1, 2023' to be eligible for procurement by the Department of Water Resources. This broadens which pump hydro facilities (up to 500 MW) can be procured.

Section 454.57(b)(9) added the phrase 'while ensuring that associated costs are just and reasonable for ratepayers' to the legislative finding about the need to prioritize and accelerate transmission projects, adding a cost-reasonableness safeguard to the transmission buildout mandate.

Section 454.57(d)(1) appears to have removed or altered the 'not later than March 31, 2024' deadline for the commission to provide transmission-focused guidance to the ISO, based on the visible text change.

Minor technical edits throughout: 'twenty-first century' changed to '21st century' in Section 454.52(g), 'electric' to 'electrical' in Section 454.57(b)(1), and 'Record-setting' to 'Record setting' in Section 454.57(b)(2).

New Section 454.57(f) requires the PUC, in consultation with the ISO, to develop a methodology by January 1, 2029 for evaluating the contribution of energy-only resources to provide charging sufficiency for energy storage. The methodology must be informed by the ISO's 2026-27 transmission planning process, including its study of whether the transmission system will be more reliable with energy-only resources used to charge energy storage.

The amendment to Section 701 of the Public Utilities Code (which made nonsubstantive changes to the PUC's general authority to supervise and regulate public utilities) was removed from the bill entirely.

Fiscal committee designation changed from 'no' to 'yes' and state-mandated local program designation changed from 'no' to 'yes,' reflecting that the new methodology requirement constitutes a state-mandated local program with fiscal implications.

Minor wording change in Section 380(b): 'reliability of electrical service in California' was changed to 'reliability of electrical service in the state.'

The bill no longer amends Section 380 (resource adequacy) to require load-serving entities to maintain energy storage. Instead, it amends Section 454.52 (integrated resource planning) to incorporate energy-only resources into the procurement and planning framework.

The requirement that each electrical corporation, electric service provider, and community choice aggregator maintain 'physical generating capacity, energy storage, and electrical demand response adequate to meet its load requirements' was removed entirely.

New Section 454.52(a)(4)(E) requires the PUC, when requiring procurement of resources, to account for the ability of energy-only resources to achieve clean energy deployment rates, charge storage during off-peak periods, and increase resource diversity, and to enable energy-only resources to satisfy procurement requirements to the maximum extent feasible.

The transmission guidance provision was changed from identifying opportunities to 'increase reliability contribution or mitigate congestion' of energy-only resources to enabling them to 'obtain deliverability through transmission capacity expansions' and requesting the ISO to reserve associated deliverability specifically for geothermal and wind.

New requirement that the PUC designate energy-only resources as long lead-time resources in the ISO's interconnection scoring process, using criteria consistent with its existing designation of long lead-time deliverable resources.

The Assembly version required the PUC to develop a methodology by January 1, 2029 for evaluating energy-only resources' contribution to charging sufficiency for energy storage. This deadline and requirement were removed in the Senate version.

The state-mandated local program designation changed from 'yes' to 'no,' meaning the bill no longer imposes costs on local agencies or school districts that would trigger reimbursement obligations under the California Constitution.

The bill now amends Sections 380 and 454.57 of the Public Utilities Code in addition to Section 701, expanding its scope from a minor language fix to comprehensive changes to resource adequacy rules and transmission planning requirements.

New resource adequacy objective (paragraph 7) requires recognizing a reliability contribution for energy-only resources that reflects their value in supporting grid reliability, including through charging energy storage and supporting decarbonization and reliability in all hours of the year.

New resource adequacy objective (paragraph 8) requires maximizing timely development and interconnection of resources in the integrated resource planning portfolio, including by removing procurement barriers for resource types that meet identified reliability, energy, or climate change objectives.

New resource adequacy objective (paragraph 9) requires promoting increased use of grid infrastructure, including leveraging energy storage flexibility and allowing market signals to guide least-cost solutions.

Transmission planning projections (Section 454.57, subdivision (e)(7)) must now identify cost-effective opportunities to increase the reliability contribution or mitigate congestion of planned or existing energy-only resources through transmission capacity expansions.

Load-serving entities must now maintain physical generating capacity, energy storage, AND electrical demand response adequate to meet load requirements. Energy storage is a newly added required resource type alongside the existing generating capacity and demand response.

The bill now has a fiscal committee impact (changed from no to yes) and creates a state-mandated local program (changed from no to yes), indicating new costs will be imposed on local agencies or school districts.