BACKGROUND
Staff has been reviewing key energy-related legislation to determine potential impacts to the Electric Utility (REU) Department. Several energy-related bills could have ramifications on the operations of the City’s electric department. Below is a list of key bills and related issues that staff has been monitoring:
State Wildfire Activities
Report of the Commission on Catastrophic Wildfire Cost and Recovery. The Commission on Catastrophic Wildfire Cost and Recovery, which was established to examine issues related to utility infrastructure and wildfire risk, recently released a report that will ultimately be submitted to the Legislature and the Governor. The report is focused on three pertinent recommendations which the Commission suggests should be considered in a coordinated fashion. The recommendations include: replacing inverse condemnation, which holds utilities strictly liable for any wildfire caused by their equipment, with a fault-based standard; establishing an Electric Utility Wildfire Board to consolidate governance of all utility wildfire prevention and mitigation efforts under a single entity; and, creating a Wildfire Victims Fund. Roseville is closely monitoring the developments of this report to see what, if any, of the proposed recommendations may appear in legislation. The recommendations provided by the Commission will continue to influence the discussions regarding utility infrastructure and wildfires as this legislative session continues.
State Legislation
SB 676 (Bradford) Transportation Electrification: Electric Vehicles: Grid Integration (Oppose Unless Amended) Requires the California Energy Commission (CEC), with the assistance of the Public Utilities Commission (CPUC), to establish electric-vehicle grid-integration strategies for publicly owned utilities. Roseville is concerned that the strategies may be similar to those required in this bill by the CPUC, which would shift, by 2030, at least 25% of the estimated electrical demand by customers for electric-vehicle charging from peak-demand periods to other periods. Roseville currently has an oppose-unless-amended position on this bill. Roseville is seeking amendments that will allow publicly owned utilities (POUs) the ability to consider electric-vehicle grid-integration more broadly, as part of our Integrated Resource Plans. This will give Roseville the flexibility to consider electric-vehicle grid-integration in a way that makes the most sense for our utility without imposing exclusive strategies or targets for charging electric vehicles during off-peak hours.
Federal Legislation
STREAMLINE Small Cell Deployment Act. Senate Commerce Committee Chairman John Thune and Senator Brian Schatz have reintroduced a broadband deployment bill, known as the STREAMLINE Small Cell Deployment Act. This proposed legislation would allow communication companies to use local government infrastructure for their communications equipment, without addressing safety issues and financial recovery for the municipalities. The bill effectively repeals the public-power exemption from federal pole-attachment regulations and gives the Federal Communications Commission (FCC) the authority to set the rates, terms, and conditions of public-power pole attachments. The City is monitoring this bill and working with our coalition partners, the American Public Power Association (APPA), as they actively lobby against this bill.
Two-Year Bills/Concepts for Discussion
SB 772 (Bradford) Long Duration Bulk Energy Storage: Procurement (Watch) This bill would have required the California Independent System Operator (CAISO) to solicit up to 4,400 megawatts (MWs) of long-duration, bulk energy-storage projects and to pass those costs on to load-serving entities within the CAISO control grid. The bill was primarily tailored to the development of pumped hydroelectric energy-storage resources, with a specific focus on a project near Joshua Tree in Southern California. The actual need for this legislation was uncertain and would have set a bad precedent for how resources are procured. As a result, the bill ultimately stalled on the Senate floor and was moved to the inactive file. The City continues to watch this topic as it could resurface at some point later this year in another legislative vehicle.
AB 56 (E. Garcia) Central Procurement Entity (Watch) This bill would give the California Alternative Energy and Advanced Transportation Financing Authority, the ability to engage in backstop procurement of electricity to meet the state’s clean energy and reliability needs that are not otherwise satisfied by load serving entities, that is, electrical corporations (IOUs), electric service providers (ESPs), and community choice aggregators (CCAs). While this bill does not directly affect publicly owned utilities (POUs), the City is watching this bill to ensure that the applicability does not expand to POUs, which would adversely affect Roseville Electric’s procurement authority.
Conclusion
Staff is aggressively advocating on key legislation with its coalition partners. Staff will continue to apprise the committee on these important legislative proposals and request any direction as needed.