Bill Text: CA AB1834 | 2023-2024 | Regular Session | Amended

California Assembly Bill 1834 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Resource adequacy: Electricity Supply Strategic Reliability Reserve Program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2024-09-22 - Vetoed by Governor. [AB1834 Detail]

Download: California-2023-AB1834-Amended.html

Amended IN Assembly March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1834

Introduced by Assembly Member Garcia

January 16, 2024

An act ~~relating to public health.~~ to amend Section 80714 of the Water Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

AB 1834, as amended, Garcia. ~~Public health: Salton Sea region.~~ Electricity Supply Strategic Reliability Reserve Program: local publicly owned electric utilities.

Existing law establishes the Department of Water Resources Electricity Supply Reliability Reserve Fund and continuously appropriates moneys in the fund to the Department of Water Resources for purposes of (1) implementing projects, purchases, and contracts to carry out specified purposes, (2) constructing, owning, and operating, or contracting for the construction and operation of, contracting for the purchase of electricity from, or financing through loans, reimbursement agreements, or other contracts actions to secure resources for summer reliability or to preserve the option to extend the life of specified facilities, and (3) reimbursing electrical corporations for the value of imported energy or import capacity products that were delivered or capable of being delivered between July 1, 2022, and on or before October 31, 2023, and were procured at above-market costs or in excess of procurement authorizations set by the Public Utilities Commission (PUC) and above the requirements needed to serve the electrical corporation’s bundled customers in support of summer electric service reliability.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), on or before January 31, 2024, in consultation with the PUC, to submit a report to the appropriate policy and budget committees of the Legislature that includes an assessment of whether each local publicly owned electric utility exceeded, met, or failed to meet its minimum planning reserve margin and specified system resource adequacy requirements, as specified. Upon the submission of that report, if the department determines that resources it procured through the Electricity Supply Strategic Reliability Reserve Program were used in a given month to meet an identified reliability need, existing law requires the executive director of the Energy Commission, on and before June 30, 2027, to annually assess a capacity payment on each local publicly owned electric utility in the Independent System Operator balancing area that during that same month fails to meet its minimum planning reserve margin, as specified.
This bill would expressly provide that the identified reliability need is the identified reliability need of the local publicly owned electric utility.
Existing law establishes the State Department of Public Health to implement various programs throughout the state relating to public health. Existing law authorizes the department to implement the required programs through, or with the assistance of, local health departments.
This bill would state the intent of the Legislature to enact legislation to authorize the public health agencies of the Counties of Imperial and Riverside to conduct an assessment to identify the specific communities or neighborhoods of the Salton Sea region that are most likely to be negatively affected by degrading air quality and increasing heat stress.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 80714 of the Water Code is amended to read:

80714.

(a) (1) Upon the submission of the report pursuant to subdivision (d) and on and before June 30, 2027, if the Department of Water Resources determines that resources it procured through the Electricity Supply Strategic Reliability Reserve Program were used in a given month to meet an a local publicly owned electric utility’s identified reliability need, the executive director of the commission shall annually assess a capacity payment on each local publicly owned electric utility in the Independent System Operator balancing area that during that same month fails to meet its minimum planning reserve margin.

(2) The annual capacity payment shall be remitted to the Local Publicly Owned Electric Utility Capacity Payment Account by a local publicly owned electric utility that was assessed a capacity payment pursuant to paragraph (1) within 30 days of the executive director notifying the local publicly owned electric utility.

(b) Upon the submission of the report pursuant to subdivision (d), the commission, in consultation with the Public Utilities Commission, shall determine a capacity payment unit cost in kilowatt per month for local publicly owned electric utilities that is based on the monthly cost of the resources procured using moneys from the Department of Water Resources Electricity Supply Reliability Reserve Fund, including the Local Publicly Owned Electric Utility Capacity Payment Account, with the total costs weighted two-thirds for June through September and one-third for the remaining eight months, and this unit cost shall be multiplied by the amount of kilowatts that the local publicly owned electric utility was deficient in its minimum planning reserve margin during the same month the Electricity Supply Strategic Reliability Reserve Program resources were used using the same resource counting conventions applied by the Public Utilities Commission pursuant to subdivision (b) of Section 80713, after crediting the deficient local publicly owned electric utilities with their share of any reliability resources procured by other entities on their behalf. The commission may make any further adjustments to the capacity values of any nonperforming resources included in a local publicly owned electric utility’s portfolio when determining the amount of this deficiency. Any adjustments made by the commission shall align with any adjustments made by the Public Utilities Commission as authorized by subdivision (b) of Section 80713.

(c) Upon the submission of the report pursuant to subdivision (d), the commission may adopt regulations to implement this section.

(d) On or before January 31, 2024, the commission, in consultation with the Public Utilities Commission, shall submit a report to the appropriate policy and budget committees of the Legislature that includes an assessment of whether each local publicly owned electric utility exceeded, met, or failed to meet its minimum planning reserve margin for 2023 and the system resource adequacy requirements from June 1, 2023, to September 30, 2023, inclusive, that the Public Utilities Commission established for load-serving entities pursuant to Section 380 of the Public Utilities Code and adopted in Public Utilities Commission Decision 22-06-050 (June 23, 2022) Decision Adopting Local Capacity Obligations for 2023–2025, Flexible Capacity Obligations for 2023, and Reform Track Framework.

(e) For purposes of this section, “minimum planning reserve margin” means a local publicly owned electric utility’s planning reserve margin, as described in Section 9620 of the Public Utilities Code, unless the local publicly owned electric utility revises that planning reserve margin based on recommendations from the commission pursuant to subdivision (b) of Section 25704.5 of the Public Resources Code, in which case “minimum planning reserve margin” means the local publicly owned electric utility’s revised minimum planning reserve margin.

SECTION 1.
It is the intent of the Legislature to enact legislation to authorize the public health agencies of the Counties of Imperial and Riverside to conduct an assessment to identify the specific communities or neighborhoods of the Salton Sea region that are most likely to be negatively affected by degrading air quality and increasing heat stress.