Resource adequacy: aggregated distributed energy resources.

The deadline for the PUC to enhance market-integrated pathways for aggregated distributed energy resources is confirmed as June 30, 2028, resolving prior markup that showed a change from 2027 to 2028.

The definition of 'aggregated distributed energy resource' no longer explicitly excludes distributed resources participating in a net metering tariff pursuant to Sections 2827 and 2827.10. This broadens the pool of resources that can be aggregated, though subdivision (b) still requires that net energy metering and net billing tariff customers not receive duplicate compensation.

Subdivisions were renumbered from (d)/(e)/(f) to (c)/(d)/(e), and amendment markup artifacts (duplicate words like 'compensation compensation' and 'credits credits') were cleaned up in the final enrolled text.

The term 'aggregated distributed capacity energy resource' is renamed to 'aggregated distributed energy resource' throughout the bill, simplifying the statutory language.

The deadline for the PUC to enhance market-integrated pathways and develop recommendations for ISO participation model changes is extended from June 30, 2027 to June 30, 2028.

The definition of an aggregated distributed energy resource is narrowed from 'an aggregation of one or more than one distributed resources' to 'an aggregation of more than one distributed resource,' meaning a single device can no longer qualify as an aggregated resource on its own.

The device-level telemetry provision is restructured into two steps: the commission must first determine that device-level telemetry provides sufficient and accurate measurements, and only then may it develop standardized requirements to allow settlement using device telemetry. Previously the commission could develop requirements more directly.

Subdivision (b) is clarified to state that customer-sited distributed resources 'may receive capacity credit for energy to be exported past the utility meter' rather than simply 'may cause energy to be exported,' making explicit that the provision addresses capacity credit eligibility.

The enrollment process requirement no longer specifically references industry best practices from the Demand Side Grid Support Program 2025 season (Section 25792 of the Public Resources Code), instead using the broader language 'reduce the barriers to enrolling distributed resources.'

Assembly Member Irwin is added as a coauthor.

The term 'aggregated distributed capacity resource' is renamed throughout to 'aggregated distributed capacity energy resource,' reflecting a broader or more precise conceptual framing of what qualifies.

Section 2(a)(1) adds the condition that an aggregated distributed capacity energy resource must 'meet all qualifying criteria' before it can qualify for local, system, or flexible resource adequacy capacity. Previously there was no such explicit gate.

Section 2(c) adds a new condition: load-serving entities may include these resources in RA filings only 'if the aggregated distributed energy resource meets the energy attribute requirements specified in the applicable procurement order or resource adequacy requirements.'

Section 2(a)(2) changes the credit from 'full capacity value' to 'their qualifying capacity value,' meaning resources may receive less than full credit depending on their assessed capability rather than automatically receiving maximum credit.

Section 2(a)(3) makes device telemetry settlement conditional: the PUC must first determine that device-level telemetry can provide accurate measurement of net load impact in response to a dispatch signal. Previously, standardized requirements for telemetry-based settlement were mandated unconditionally.

Section 2(a)(4) narrows the crediting window from 'any hour of the day' to 'the specific hour of the day required for resource adequacy showings.' This significantly limits when load reductions and net exports count toward RA capacity.

Section 2(d)(1) is substantially restructured. The old version protected ADCEs from being excluded in favor of lower-loading-order resources (with narrow exceptions for attributes like clean firm generation). The new version instead requires ADCEs to 'demonstrate it can deliver the specific energy attributes, including capacity, location, dispatchability, or other characteristics, required under the applicable procurement order' before they are eligible to participate. This shifts the burden from protecting ADCEs to requiring them to prove their capabilities.

Section 2(e) fixes garbled drafting language: 'shall request that communicate the recommendations to the Independent System Operator implement these changes' is corrected to 'shall communicate the recommendations to the Independent System Operator for consideration in a new or existing initiative.'

Section 1(a)(5) softens the finding from 'has dramatically declined' to 'has declined,' removing the intensifier. Section 1(a)(4) also corrects garbled language about why distributed energy resources are undervalued.

Assembly Members Boerner and Harabedian are added as coauthors alongside Assembly Member Garcia, indicating broader legislative support.

New subdivision (b) requires the PUC to establish conditions under which customer-sited distributed resources may export energy past the utility meter as part of an aggregated distributed capacity resource, with the goal of maximizing grid benefits while ensuring net energy metering and net billing tariff customers do not receive duplicate compensation through both the aggregation and retail bill credits.

Subsection (a)(2) now limits full capacity value credit for energy exported past the utility meter to 'the extent authorized pursuant to subdivision (b),' tying export credits to the new conditions rather than allowing them unconditionally.

Subsection (a)(3) adds specific examples of what reasonable and standardized requirements may include: metering accuracy, data integrity, telemetry resolution and latency, settlement verification, interoperability across devices and aggregators, and fraud or tamper prevention.

The requirement for the PUC to direct the Independent System Operator was softened from 'shall request that the Independent System Operator implement these changes in a new or existing initiative' to 'shall request that communicate the recommendations to the Independent System Operator implement these changes for consideration in a new or existing initiative,' reducing the directive nature of the obligation.

Subsection (d)(1) [formerly (c)(1)] changed from 'the commission shall provide reasonable flexibility in procurement requirements' to 'Resource procurement requirements provide reasonable flexibility,' and subsection (d)(2) [formerly (c)(2)] changed from 'Requirements shall not prevent' to 'Procurement requirements do not prevent,' narrowing these provisions to apply specifically to resource procurement rather than all PUC requirements.

Coauthors were expanded to include Senators Blakespear and Cortese and Assembly Member Garcia, indicating broader cross-chamber legislative support for the bill.

A new definition for 'Distributed resources' was added, giving it the same meaning as defined in Section 769 of the Public Utilities Code, and the definitions section was changed from 'both of the following' to 'all of the following.'

The definition of 'aggregated distributed capacity resource' now explicitly excludes distributed resources participating in a net metering tariff pursuant to Sections 2827 and 2827.10 of the Public Utilities Code, narrowing which resources can be aggregated for resource adequacy purposes.

Policy goal (6) on consumer data privacy was substantially simplified. The old version prohibited 'unduly burdensome requirements' with specific examples (utility login, meter-level data sharing authorization), included a carve-out for clear statutory requirements or compelling need, and directed the PUC to allow opt-out enrollment structures and streamlined data access. The new version simply states that privacy is protected 'consistent with state law' and enrollment follows 'industry best practices' referencing the Demand Side Grid Support Program.

The bill summary was cleaned up to remove redundant references to 'the commission' alongside 'PUC,' using only 'PUC' throughout, reflecting the agency's current name.

Section 2(c)(1) changed the exception for when utilities can prefer other resources over aggregated distributed capacity resources. The old version referenced a specific five-year construction and development lead time requirement under Section 454.52. The new version replaces this with a broader standard: resources with 'specific attributes that cannot be met by aggregated distributed capacity resources, such as providing clean firm generation or multiday energy storage.' This makes the exception more flexible and principle-based rather than tied to one statutory provision.

Section 2(a)(6) now requires that enrollment processes for aggregated distributed capacity resources follow industry best practices, specifically referencing those adopted for the Demand Side Grid Support Program under Section 25792 of the Public Resources Code. This gives regulators a concrete existing program as a model for streamlined enrollment.

The summary section now explicitly references 'PUC' alongside 'commission' to clarify which agency is meant, and duplicate text from the prior amendment (such as a repeated 'Section 454.54') was cleaned up throughout the bill.

The entire amendment to Section 25545 of the Public Resources Code was deleted. That section defined 'eligible facility' for alternative certification purposes, covering solar, wind, energy storage, hydrogen production, geothermal, and transmission line projects meeting certain size thresholds (e.g., 50 MW or more). Its removal means this bill no longer touches the alternative certification process.

Senator Stern was added as a coauthor of the bill.

Section 380.1(b) now requires that inclusion of aggregated distributed capacity resources in resource adequacy filings be 'consistent with the loading order in the state's energy action plan,' adding a new constraint on how these resources can be procured relative to other resource types.

Section 380.1(c)(1) was restructured from a flat prohibition on disincentivizing load-serving entities from contracting with ADCRs into a more nuanced rule: requirements shall not prevent contracting unless they address 'specific attributes that cannot be met by aggregated distributed capacity resources, such as providing clean firm generation or multiday energy storage.' It also adds a directive for the commission to provide 'reasonable flexibility in procurement requirements to accommodate the differing characteristics of resource types' to broaden competition at lowest cost.

The fiscal analysis changed from 'Fiscal committee: no' and 'State-mandated local program: no' to 'Fiscal committee: yes' and 'State-mandated local program: yes,' indicating the amended bill now carries a fiscal impact and imposes obligations on local agencies that trigger state reimbursement requirements.

New Section 380.1 added to the Public Utilities Code requiring the PUC to enhance market-integrated pathways for aggregated distributed capacity resources to qualify as resource adequacy capacity by June 30, 2027

Bill title and digest expanded from solely relating to alternative certification under the Public Resources Code to also covering resource adequacy for aggregated distributed capacity resources under the Public Utilities Code

Eight specific requirements imposed on the PUC including: full capacity value credit for DERs (including energy exported past the meter), device telemetry settlement without revenue-grade meters, multiple enrollment behind a single point of interconnection, technology-neutral and weather-normalized capacity determinations, consumer data privacy protections with opt-out enrollment structures, and alignment with ISO participation models

Load-serving entities (utilities, electric service providers, community choice aggregators) are now explicitly allowed to include aggregated distributed capacity resources in resource adequacy filings and commission-ordered procurement under Section 454.54

The PUC is prohibited from adopting requirements that would disincentivize load-serving entities from contracting with aggregated distributed capacity resources in favor of other resource types lower in the energy action plan loading order, or from limiting non-load-serving entities from developing and managing these resources

PUC must develop recommendations for changes to ISO's proxy demand resource and DER aggregation participation models (including must-offer obligations) by June 30, 2027, and request that the ISO implement them in a new or existing initiative

New definition of 'aggregated distributed capacity resource' as an aggregation of one or more distributed resources capable of supplying electricity to or reducing demand on the distribution system when called upon

Fiscal committee review and state-mandated local program designation changed from 'no' to 'yes,' indicating the amendment triggers additional fiscal analysis and creates obligations for local agencies, with a no-reimbursement provision added under Article XIII B of the California Constitution