SB-1305

This bill would require each load-serving entity to procure from virtual power plants, defined as actively coordinated aggregations of behind-the-meter distributed energy resources that can perform certain functions, sufficient capacity to meet specified minimum capacity requirements by certain dates, as provided. The bill would require capacity procured from a virtual power plant by a load-serving entity pursuant to these provisions to be used to meet the resource adequacy requirements established for the load-serving entity. The bill would authorize the commission to postpone, in one-year increments, the deadlines for compliance with these requirements for a particular load-serving entity if the commission makes certain findings. The bill would require, on or before January 30, 2026, and each year thereafter, each load-serving entity to submit a report to the commission showing the load-serving entity’s progress toward complying with the virtual power plant capacity requirements.

This bill would require the PUC, in coordination with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions in relation to virtual power plants, as defined. The bill would require the PUC, on or before March 1, 2026, to begin a proceeding to determine targets for each electrical corporation to procure generation from cost-effective virtual power plants, and would require the PUC, on or before October 1, 2026, to finalize its proceeding and issue a decision adopting virtual power plant procurement targets to be achieved by each electrical corporation on or before December 31, 2028, and on or before December 31, 2033. The bill would, upon the PUC adopting virtual power plant procurement targets, require each electrical corporation, beginning January 30, 2028, and each year thereafter, to file a report with the PUC on its progress toward complying with the virtual power plant procurement targets.