State Water Project: renewable energy resources and zero-carbon resources.

In subdivision (f)(2), the definition of 'excess procurement' was changed from exceeding 100 percent of the annual 'retail sales electrical load served' to exceeding 100 percent of the annual 'electrical load served.' Removing 'retail sales' broadens or clarifies the baseline against which surplus is measured, affecting when the department can bank extra procurement for future years.

Fixed a duplicate word in the legislative counsel's digest: 'zero-carbon resources resources' corrected to 'zero-carbon resources.'

Fixed a double-preposition typo in subdivision (e)(3)(B)(ii): 'deposited in into the California Water Resources Development Bond Account' corrected to 'deposited into the California Water Resources Development Bond Account.'

The definition of 'excess procurement of eligible renewable energy resources and zero-carbon resources' was clarified to mean procurement exceeding 100 percent of annual retail sales electrical load served (previously just 'annual retail sales'), making the threshold more precise.

Added the word 'also' before 'consider portfolio diversity, resource type, location, and hours of typical peak operation' to clarify these are additional factors on top of those already listed in prior subdivisions.

Minor drafting corrections including changing 'described in clause (i)' to 'as described in clause (i)' and a typographical error introducing 'in into' where only 'into' was intended.

The entire second section amending Section 6301.6 of the Public Resources Code (regarding investment of impounded funds and gender-neutral language) was removed, narrowing the bill to only address State Water Project renewable and zero-carbon energy procurement.

The date threshold for existing fossil fuel generation contracts eligible for deferred zero-carbon procurement was expanded from contracts entered before January 1, 2010 to contracts entered before January 1, 2011, giving the Department of Water Resources one additional year of contracts it can defer procuring around.

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review, likely due to the expanded contract deferral provision having budgetary implications.

Entirely new Section 80400 of the Water Code added, requiring the Department of Water Resources to procure eligible renewable energy and zero-carbon resources to satisfy state agency obligations on the State Water Project under Public Utilities Code Section 454.53.

Procurement must consider portfolio diversity, resource type, location, and hours of typical peak operation (in addition to existing factors like employment benefits, resource adequacy, and IRP modeling results).

The department must require sellers of new energy generation facilities to use multicraft project labor agreements (as defined in Public Contract Code Section 2500(b)(1)) for construction, conforming to industry standard agreements including side letters for high-voltage transmission work.

If full achievement would require early termination of a fossil fuel contract entered before January 1, 2010 with significant uneconomic costs, the department may defer zero-carbon procurement until no later than December 31, 2040.

On and after January 1, 2036, excess procurement (defined as exceeding 100 percent of annual retail sales for the department and SWP) may be applied to subsequent years' obligations.

The Governor may adjust compliance deadlines in cases of extraordinary circumstances, catastrophic events, supply chain disruptions, or threats of significant economic harm, but no later than December 31, 2040.

Resources procured after February 1, 2022 must be newly developed or constitute incremental production reaching initial commercial operations on or after January 1, 2023, and must be located in California or have a first point of interconnection to a California balancing authority.

The department may elect direct payment of federal Inflation Reduction Act credits, which must be deposited into the California Water Resources Development Bond Account, with written notice to the Joint Legislative Budget Committee within 10 days.

Fiscal committee designation changed from 'no' to 'yes', indicating the amended bill now has a fiscal impact due to the new energy procurement obligations.