SB842 - Energy: firm zero-carbon resources.

Amended IN Assembly June 27, 2025 Amended IN Senate May 23, 2025 Amended IN Senate May 01, 2025 Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 842 Introduced by Senator Stern February 21, 2025 An act to add Section 380.6 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST SB 842, as amended, Stern. Energy: firm zero-carbon resources. Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires electrical corporations to submit information to the commission for various purposes, as provided. This bill would require the commission, on or before December 31, 2026, to produce a report identifying opportunities and needs to provide for local and system reliability with firm zero-carbon resources over the short term, midterm, and long term, as provided. The bill would require the report to include, among other things, characterization of the resource attributes vital for local and system reliability and identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local and system reliability. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing those provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) Firm zero-carbon resources, which include renewable resources that can, along with other resources, provide nonemitting firm dispatchable capacity, are essential to advancing California’s clean energy goals and ensuring a reliable, resilient, and affordable electricity system, including in the face of growing challenges posed by extended weather events and wildfire risks. (b) Firm zero-carbon resources are not fully represented or valued in the state’s energy planning processes or market rules, which may lead to suboptimal energy and cost outcomes. (c) Enabling the widest array of clean energy resources, including firm zero-carbon resources, to participate in the state’s energy markets as soon as possible will maximize competition and innovation, and deliver the most affordable energy outcomes for California ratepayers. SEC. 2. Section 380.6 is added to the Public Utilities Code, to read: 380.6. (a) For purposes of this section, all of the following definitions apply: (1) “Firm zero-carbon resources” has the same meaning as defined in Section 25216.7 of the Public Resources Code. (2) “Long term,” “midterm,” and “short term” have the same meanings as defined in Section 454.52. (b) On or before December 31, 2026, in consultation with the Independent System Operator, the commission shall produce a report identifying opportunities and needs to provide for local and system reliability with firm zero-carbon resources over the short term, midterm, and long term. (c) The report produced pursuant to subdivision (b) shall include all of the following: (1) Characterization of the resource attributes vital for local and system reliability, and identification of firm zero-carbon resources capable of providing those attributes. (2) Development of scenarios identifying the scale of firm zero-carbon resource needs to provide local and system reliability over the short term, midterm, and long term, accounting for economic retirements of available infrastructure and based on reliability needs. (3) Identification of priority regions for deploying firm zero-carbon resources to provide local and system reliability over the short term and midterm, based on the scenarios and considerations identified in paragraph (2). (4) Identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local and system reliability. (5) Identification of solutions to overcome barriers identified in paragraph (4), including potential changes to market products or new services that may be required—such as multiday firm capacity products, flexible ramping products, or other firm energy supply obligations that could incentivize the long-term development of firm zero-carbon resources needed to meet the state’s energy goals and achieve the outcomes of this section. (6) Identification of implementation timelines, regulatory processes, or stakeholder engagement steps required to adopt those changes. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.