Electricity: load shifting.

In the definition of 'load shifting' (Section 25302.7(e)(5)(C)), the exclusion was narrowed from all backup generators to only backup generators powered by fossil fuels. This means zero-carbon backup generators (e.g., hydrogen fuel cells) can now count as load shifting. The separate reference to 'greenhouse-gas-emitting resources' was also removed as redundant.

In Section 25302.7(a)(2), the phrase 'specific load flexibility resources and programs' was changed to 'specific load flexibility programs,' removing the word 'resources.' A tracked-change artifact ('value amount' becoming 'amount') was also cleaned up.

The Energy Commission's obligation changed from dividing the total load-shifting goal across retail suppliers (allocating specific targets) to merely estimating each retail supplier's load-shifting potential. This removes the allocation mandate and makes the process advisory rather than prescriptive.

The requirement that large electrical corporations 'shall rely on' load-shifting capacity in their distribution system planning (when they can control timing and it is feasible, cost-effective, and reliable) has been removed. It is now only a requirement to 'consider' available load-shifting capacity, which is a much weaker obligation.

In Section 769.1(c)(3), the PUC's obligation changed from 'prioritize' the listed goals to merely 'consider' them. Additionally, goal (A) was shortened by removing the requirement to improve capacity utilization before specific grid upgrade needs are identified, rather than only after.

A new subdivision (e) in Section 25302.7 explicitly states that the section does not impose a binding obligation or otherwise mandate procurement of load-shifting technologies by retail suppliers, and does not supplant the authority of community choice aggregator or local publicly owned utility governing boards to set rates, establish programs, and create goals.

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

The PUC requirement that before determining a distribution capacity investment is just and reasonable, the commission must ensure the large electrical corporation made 'reasonable efforts' to increase cost-effective load shifting or other peak demand reduction has been removed entirely. This eliminates a key enforcement mechanism that would have required utilities to try load shifting before building new infrastructure.

Entire Section 769.1 of the Public Utilities Code is removed. This provision would have required the PUC to develop a strategy by January 1, 2028 to reduce distribution infrastructure investment needs by enabling large utilities to use distributed resources and load shifting. It included requirements for data transparency (capacity utilization metrics, off-peak load-hosting capacity, constrained area boundaries), program design standards, authorization for utility investments in load-shifting capacity, and tariff structures for large new loads.

The state-mandated local program finding is changed from 'yes' to 'no,' and the related reimbursement provision (Section 4) is removed, consistent with eliminating the PUC enforcement provisions that would have triggered local agency obligations.

The requirement for the Energy Commission to identify and evaluate barriers to implementing load-shifting strategies and recommend methods to eliminate them (former subsection (d) of Section 25302.7) is removed entirely.

Section 25302.7(c)(1) no longer requires the Energy Commission to publish each retail supplier's future load-shifting targets or compare achieved results against estimated potential. The commission now only needs to publish the amount of load shifting each retail supplier achieved in the prior calendar year.

The exclusion from the 'load shifting' definition is expanded. Previously it excluded 'backup generators, or any other greenhouse-gas-emitting resources.' Now it also explicitly excludes 'generators powered by fossil fuels' and 'generation resources that are not renewable or zero-carbon generation resources,' making the exclusion broader and more specific.

Minor language changes in Section 25302.7(a)(2): 'the approximate value each load-shifting intervention contributes' is changed to 'the approximate amount of load shifting each type of load-shifting intervention contributes to the overall 2030 load-shift goal,' and 'programs' is expanded to 'programs and other types of load-shifting interventions.'

New requirement for the Energy Commission to analyze cost-effectiveness of specific load flexibility resources and programs in the next biennial integrated energy policy report after January 1, 2027, identifying the approximate value each intervention contributes to the 2030 goal and its cost-effectiveness.

Removed the requirement for the Energy Commission to establish a location-based avoided cost metric estimating the value of demand reduction at different times and locations, and to require electrical corporations to continuously update and make those metrics available to third parties.

Removed the requirement for the Energy Commission to allocate to each retail supplier its share of credit for nonemergency load shifting procured through centralized procurement mechanisms, broadly applicable rate design programs, or other collective activity.

New requirement that the PUC's strategy under Section 769.1(a) must be fully consistent with Section 399.2 of the Public Utilities Code.

New obligation in Section 769.1(c)(2) requiring each large electrical corporation to consider available load-shifting capacity in its annual distribution system planning and to actually rely on that capacity if two conditions are met: the corporation can control the timing of use, and creating and relying on it would be feasible, cost-effective, and reliable.

Customer data access requirements in Section 769.1(c) now explicitly reference Section 8380 of the Public Utilities Code as a minimum standard, adding a specific statutory benchmark for how utilities must handle customer data for load-shifting programs.

The PUC's distribution strategy under Section 769.1(a) is reframed from a general mandate to leverage distributed resources and load shifting into a strategy specifically aimed at reducing total distribution infrastructure investment, with the added qualifier 'where cost-effective' before leveraging distributed resources and load shifting.

The state-mandated local program designation changed from 'no' to 'yes' in the fiscal note, indicating the bill now imposes costs on local agencies that trigger reimbursement obligations under the California Constitution.

Third-party protection language softened from 'do not interfere with the ability of third parties to develop load-shifting capacity' to 'do not prevent or unfairly disadvantage third parties in developing load-shifting capacity,' a lower threshold for what constitutes a violation.

The definition of load shifting changed from excluding backup generators and greenhouse-gas-emitting resources 'only within emergency programs' to a flat prohibition: load shifting 'does not include the use of backup generators, or any other greenhouse-gas-emitting resources, to reduce electrical grid demand.' This removes the prior emergency program exception.

The PUC's authorization for large electrical corporations to make investments in load-shifting capacity now requires those investments to be 'cost-effective,' adding a new financial threshold that was not present in the prior version.

Added entirely new Section 769.1 to the Public Utilities Code requiring the PUC to develop a strategy by January 1, 2028 to leverage distributed resources and load shifting to increase utilization of existing distribution and transmission infrastructure, provide bridging solutions for faster energization of new loads, and reduce total distribution investment needed for long-term load growth.

Removed the prior Section 380.4 which only required the PUC to consider whether larger peak/off-peak rate differentials and distinguishing nighttime vs. daytime off-peak periods would be cost-effective - a much narrower provision replaced by the comprehensive new framework.

Added a new subdivision (e) to Public Resources Code 25302.7 stating the section does not impose a binding obligation or mandate procurement of load-shifting technologies by retail suppliers, and is not intended to abridge the authority of community choice aggregator boards or local publicly owned utilities to set rates, establish programs, and create goals.

Added 'other California balancing authorities' alongside the PUC and Independent System Operator in consultation requirements for recommending load-shifting policies and identifying barriers, broadening the group of entities consulted.

Requires large electrical corporations to make publicly available data quantifying peak load reduction potential on their distribution grids, including a capacity utilization metric, an off-peak load-hosting capacity metric, and the location and boundaries of constrained distribution areas with enough detail for third parties to identify eligible customer locations.

Directs large electrical corporations to implement programs, rate designs, or incentives in constrained distribution areas to prioritize load-shifting capacity development, with specific priorities including improving capacity utilization before grid upgrades are needed, establishing efficient acquisition processes, providing adequate incentives and minimum contract periods, customer consent-based data access, and allowing all customer classes to participate.

Requires the PUC to ensure a large electrical corporation has made reasonable efforts to increase cost-effective load shifting or other peak demand reduction before determining that an investment to increase distribution system capacity is just and reasonable - effectively making load shifting a prerequisite for approving grid upgrade investments.

Authorizes the PUC to allow large electrical corporations to develop tariffs or fee structures to charge large new loads seeking energization for the cost of acquiring load-shifting capacity from other customers, creating a new cost-recovery mechanism.

Expanded the definition of 'load shifting' in Public Resources Code 25302.7 to include distribution-connected renewable generation and energy storage resources as load-modifying resources, broadening what counts toward load-shifting goals.

Changed the exclusion for backup generators from 'may include... only within emergency programs' to 'does not include... to reduce electrical grid demand,' making it a flat prohibition on counting greenhouse-gas-emitting resources as load shifting rather than limiting them to emergency contexts only.

Changed the state-mandated local program designation from 'no' to 'yes' because violations of PUC orders implementing the new requirements would constitute crimes, triggering reimbursement analysis under Article XIII B of the California Constitution.

Load-shifting goal allocation method changed from a formula based solely on each retail supplier's relative share of statewide load to a more flexible standard based on the commission's estimate of each supplier's load-shifting potential, including consideration of relative share and other relevant factors as determined by the commission.

New requirement for the Energy Commission to evaluate and publish on its website, by July 1, 2028 and biennially thereafter, how much load shifting each retail supplier achieved in the prior year compared to its allocated goal, including standards for evaluating strategy effectiveness and credit allocation for centralized procurement.

New requirement for the Energy Commission, in consultation with the PUC and ISO, to establish a location-based avoided cost metric estimating the value of demand reduction at different times and locations (including benefits from delayed transmission/distribution investment and avoided resource adequacy costs), with electrical corporations required to continuously update these metrics and make them available to third parties.

The definition of 'load shifting' was narrowed to require that it 'benefits the electrical grid, including by reducing the need for peak generation capacity and investments in transmission or distribution infrastructure.'

All provisions related to alternative certification under Section 25545 of the Public Resources Code were removed from the bill, along with the reference to that section in the bill's title.

The bill now adds a new Section 380.4 to the Public Utilities Code (text in truncated portion of diff), expanding the bill's reach into PUC jurisdiction over resource adequacy.

The state-mandated local program designation was changed from 'yes' to 'no,' removing the fiscal analysis implications that would have applied to local publicly owned electric utilities under the previous version.

Removed the amendment to Section 454.52 of the Public Utilities Code, which would have required load-serving entities to meet incremental load-shifting allocations in their integrated resource plans and to document why goals could not be met cost-effectively.

State-mandated local program designation changed from 'yes' to 'no,' reflecting the removal of provisions that imposed duties on local publicly owned electric utilities. The corresponding no-reimbursement provision (former Section 4) was also removed.

Removed new Chapter 11 (Section 8500) of Division 4.1 of the Public Utilities Code, which would have required all retail suppliers to provide rate information to the Energy Commission's Market-Informed Demand Automation Server for third-party device access, required load-serving entities to offer optional dynamic pricing tariffs by January 1, 2028, and required local publicly owned electric utility governing boards to consider offering dynamic pricing tariffs.

Removed the requirement to allocate 'incremental' load shifting and instead simply allocates 'load shifting.' Also removed specific allocation factors: deducting load shifting already achieved in the initial SB 846 Load-Shift Goal Report, considering shortened time remaining to achieve the 2030 goal, and considering nonemergency load shifting already achieved by a retail supplier.

The definition of 'load shifting' was broadened from a specific metric (reduction in net peak demand during the top 100 net system load hours, measured as gross bulk system load minus in-front-of-the-meter solar and wind generation) to a more general standard (a reduction in demand that benefits the electrical grid, including by reducing the need for peak generation capacity and investments in transmission or distribution infrastructure).

The bill now amends Section 25302.7 of the Public Resources Code, Section 454.52 of the Public Utilities Code, and adds an entirely new Chapter 11 (Section 8500) to Division 4.1 of the Public Utilities Code, expanding scope from a single definitions section to multiple codes and agencies.

The Energy Commission must allocate incremental load-shifting targets to each retail supplier based on their relative share of statewide load, deducting already-achieved load shifting and excluding emergency programs. The commission must also establish rules for evaluating the effectiveness of different load-shifting strategies and determine how much credit suppliers receive.

The PUC must require all load-serving entities to offer optional dynamic pricing tariffs by January 1, 2028, consistent with the Energy Commission's electric load management standards and the CalFUSE hourly dynamic pricing framework.

All retail suppliers must provide rate information to the Energy Commission's Market-Informed Demand Automation Server so that third-party devices can access real-time rate information for automating load flexibility.

The governing board of each local publicly owned electric utility must consider offering dynamic pricing tariffs by January 1, 2028. If they decline, they must adopt a resolution explaining why and post it on their website.

Section 454.52 is amended to require load-serving entities to meet their incremental load-shifting allocation in their integrated resource plans, to the extent cost effective as measured by the avoided cost calculator or compared to alternative resource adequacy sources. Plans that do not forecast meeting the goal must document why it cannot be met cost-effectively.

Retail suppliers with 60,000 or fewer customer accounts in the state, or any retail supplier with annual electrical demand of less than 1,000 gigawatthours, are excluded from the definition of 'retail supplier' and thus exempt from the new rate-sharing and load-shifting obligations.

The fiscal committee designation changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes', indicating the amended bill now has fiscal impacts and imposes obligations on local agencies (specifically local publicly owned electric utilities).

New definitions added for 'load shifting' (reduction in net peak demand during top 100 net system load hours), 'retail supplier,' 'community choice aggregator,' 'electric service provider,' 'electrical corporation,' and 'local publicly owned electric utility.' Load shifting may include backup generators or other greenhouse-gas-emitting resources only within emergency programs.

The PUC is directed to consider whether larger differentials between peak and off-peak time-of-use periods (including for transmission and distribution rates) would be cost-effective, and whether distinguishing nighttime off-peak from daytime off-peak periods would align flexible load with abundant renewable energy.