Electrical corporations: interconnection: Public Utilities Commission: transmission development monitor., the official text

An act to add Section 769.4 to the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission, if it determines that the rules, practices, equipment, appliances, facilities, or service of a public utility, or the methods of manufacture, distribution, transmission, storage, or supply used by the public utility, are unjust, unreasonable, unsafe, improper, inadequate, or insufficient, to determine and fix the rules, practices, equipment, appliances, facilities, service, or methods to be observed, furnished, constructed, enforced, or employed.
This bill would, within one year following the adoption of each transmission plan produced by the Independent System Operator through the transmission planning process, or a successor process, and within one year following the execution of a generator interconnection agreement, require each large electrical corporation, as defined, that is assigned or obligated to construct a project that requires approval by the commission to initiate permitting for the project by filing an application or other notice, as applicable, pursuant to a specific general order of the commission. The bill would authorize a large electrical corporation to request an extension of the filing deadline by demonstrating good cause, as described, in a written notice to the commission, as provided. If a large electrical corporation fails to adhere to these timelines, or to make a timely extension request, the bill would require the commission to take appropriate enforcement action, as specified.
This bill would require, beginning July 1, 2027, the commission to require each large electrical corporation to retain an independent third-party auditor to review certain information regarding transmission- and interconnection-related facilities submitted by the large electrical corporation, the large electrical corporation’s progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, the large electrical corporation’s compliance with the above-described permitting deadlines, and the large electrical corporation’s compliance with any remedial actions ordered by the commission, as specified. The bill would require the third-party auditor to report to the commission on an annual basis, as provided. Within 90 days of receiving the auditor’s report, the bill would require the commission to issue a resolution directing the large electrical corporation to take remedial actions to address any and all deficiencies identified by the auditor, as specified.
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 above-described provisions would be part of the act and a violation of a commission action implementing the above-described provisions would be a crime, this 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.

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

SECTION 1.
Section 769.4 is added to the Public Utilities Code, to read:
769.4.
(a) (1) (A) Within one year following the adoption of each transmission plan produced by the Independent System Operator through the transmission planning process, or a successor process, each large electrical corporation that is assigned to construct a project that requires approval by the commission shall initiate permitting for the project by filing an application or other notice, as applicable, pursuant to General Order 131-E.
(B) Within one year following the execution of a generator interconnection agreement, each large electrical corporation that is obligated to construct a project that requires approval by the commission shall initiate permitting for the project by filing an application or other notice, as applicable, pursuant to General Order 131-E.
(2) (A) A large electrical corporation may request an extension of the filing deadlines described in paragraph (1) by demonstrating good cause in a written notice to the commission. The notice shall be served at least 30 days before the filing deadline and specify the actions the large electrical corporation is undertaking to resolve the principal causes of delay identified in the notice.
(B) For purposes of this paragraph, “good cause” may include preparatory conditions, including engineering completion, environmental assessments, and necessary coordination with affected stakeholders, and factors that the auditor determines are beyond the reasonable control of the large electrical corporation, including, but not limited to, supply chain constraints and permitting delays at federal, state, or local agencies.
(3) If a large electrical corporation fails to adhere to the timelines specified in this section, or to make a timely extension request pursuant to paragraph (2), the commission shall take appropriate enforcement action pursuant to Section 701.
(b) (1) Beginning July 1, 2027, the commission shall require each large electrical corporation to retain an independent third-party auditor selected and approved by the commission to review the large electrical corporation’s submissions pursuant to commission Resolution E-5252 and subparagraph (B) of paragraph (2) of subdivision (a) of Section 399.13, the large electrical corporation’s progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, the large electrical corporation’s compliance with subdivision (a), and the large electrical corporation’s compliance with any remedial actions ordered by the commission pursuant to subdivision (c).
(2) The commission, in consultation with the Public Advocate’s Office of the Public Utilities Commission, shall select the auditor and shall ensure that the auditor does not have a conflict of interest due to other work, contracts, or business relationships with the large electrical corporation.
(3) The auditor shall report to the commission on an annual basis. The reports of the auditor shall be posted on the commission’s internet website and incorporated into the commission’s annual reporting requirements pursuant to subdivision (g) of Section 913.4.
(c) Within 90 days of receiving the auditor’s report pursuant to subdivision (b), the commission shall issue a resolution directing the large electrical corporation to take remedial actions to address any and all deficiencies identified by the auditor. Remedial actions may include, but are not limited to, the following:
(1) (A) Reallocating staff or capital resources to complete high-priority upgrades.
(B) For purposes of this paragraph, “high-priority upgrades” means transmission, distribution, or interconnection facilities affecting the interconnection or deliverability of at least 100 megawatts of generating or storage capacity.
(2) Facilitating advanced procurement of equipment or equipment sharing with other electrical corporations to address delays caused by supply chain constraints.
(3) Interim deliverability or temporary generator interconnection solutions.
(4) Enabling generators to procure equipment on behalf of the large electrical corporation, while ensuring the equipment meets necessary specifications for safety, performance, and reliability.
(5) (A) Enabling self-build options by generators or transmission solutions developed by another electrical corporation.
(B) For purposes of this paragraph, “self-build options” includes, but is not limited to, the permitting, design, procurement, construction, or commissioning of transmission, distribution, or interconnection facilities by an entity other than the large electrical corporation.
(6) Expediting engineering, design, permitting, and other preconstruction work for high-priority upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator.
(d) The large electrical corporation’s record of compliance with remedial actions ordered by the commission pursuant to this section shall be admissible evidence and considered by the commission in any decision approving a rate or cost of capital application filed pursuant to Section 451.
(e) This section does not authorize an electrical corporation to seek, or the commission to approve, an increase in a revenue requirement or cost of capital under Section 451 based on compliance with any remedial actions ordered under this section.
(f) For purposes of this section, “large electrical corporation” has the same meaning as defined in Section 3280.

SEC. 2.
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.