HomeMy WebLinkAboutAgenda Report - August 1, 2018 C-13TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C• -I3
AGENDA TITLE: Receive Report Regarding Communication Pertaining to Assembly Bill 813
(Holden) Multistate Regional Transmission System Organization: Membership
MEETING DATE: August 1, 2018
PREPARED BY: City Clerk
RECOMMENDED ACTION: Receive report regarding communication pertaining to Assembly Bill
813 (Holden) Multistate Regional Transmission System
Organization: Membership.
BACKGROUND INFORMATION: The City received requests for communication from both the
Northern California Power Agency and the California Municipal
Utilities Association regarding AB 813 (Holden) Multistate Regional
Transmission System Organization: Membership. There was a need
to send a letter immediately in light of a pending hearing.
AB 813 seeks to expand the California Independent System Operator into a regional entity, allowing the
California Energy Commission to determine that the newly established governance structure meets
legislative requirements and that California should move forward with the proposal. There are four
primary reasons for concern: 1) The bill will allow other states to raise California's electricity rates;
2) AB 813 will cede control of California's electric transmission system to the federal government;
3) AB 813 may not help California utilities access cheaper renewable energy resources; and 4) The
existing Energy Imbalance Market is functioning well and is expanding.
The attached letter was sent on July 23, 2018. A copy of the initial request, along with the text of the bill,
is also attached. This report is provided for informational purposes only, pursuant to policy.
FISCAL IMPACT: Not applicable.
FUNDING AVAILABLE: Not applicable.
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de nifer M. . rraiolo
City Clerk
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City Manager
CITY COUNCIL
ALAN NAKANISHI, Mayor
JOANNE MOUNCE,
Mayor Pro Tempore
MARK CHANDLER
BOB JOHNSON
DOUG KUEHNE
CITY OF LODI
Senator Cathleen Galgiani
State Capitol, Room 5097
Sacramento, CA 95814
2015 "Wine Region of the Year"
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702 / FAX (209) 333-6807
www.lodi.gov cityclerk@lodi.gov
July 23, 2018
Assemblymember Jim Cooper
State Capitol, Room 6025
Sacramento, CA 95814
STEPHEN SCHWABAUER
City Manager
JENNIFER M. FERRAIOLO
City Clerk
JANICE D. MAGDICH
City Attorney
RE: AB 813 (Holden) Multistate Regional Transmission System Organization:
Membership — Hold on Suspense
I write to respectfully ask you to urge the Senate President Pro Tem and the Chair of the
Senate Appropriations Committee to hold AB 813 on the Suspense File. The bill seeks to
expand the California Independent System Operator (CAISO) into a regional entity.
There are four primary reasons for our concern:
1. The bill will allow other states to raise California's electricity rates. Other
Western states participating in the expanded CAISO and on the Western States
Committee will have the ability to force California consumers to pay for Western
grid expansion, potentially with hundreds of miles of expensive transmission
projects elsewhere that California consumers may not need or want, leading to
rising electricity costs.
2. AB 813 will cede control of California's electric transmission system to the
federal government. If AB 813 passes, CAISO's expansion will also have to be
approved by the Federal Energy Regulatory Commission (FERC), with decisions
made by President Trump's appointees on its governing board. This is because
independent system operators and regional transmission organizations operate
under a FERC approved tariff, or set of rules. The current FERC does not share
California's climate priorities. For example, a recent FERC order found a state's
renewable portfolio standards (RPS) is interfering with regional wholesale
markets. This current FERC has now shown it will change wholesale market rules
— and they'll have the same authority over an expanded CAISO — to ignore state
renewable mandates. This makes passage of AB 813 high risk and anti -
environment. Moreover, AB 813 usurps the California State Legislature's ability to
properly oversee the development of this envisioned regional entity. The
formation of this expanded ISO will require policy -related determinations affecting
California's electricity ratepayers that should be subject to public review and
deliberation as well as California state legislative oversight.
3. AB 813 may not help California utilities access cheaper renewable energy
resources. While the main purported benefit of grid expansion is greater access
to renewable power resources outside of California, AB 813 maintains restrictions
on renewable resources procured within the expanded CAISO footprint outside of
California and eligible to be considered a Bucket 1 resource under the RPS.
Maintaining this restriction while expanding the CAISO is illogical. The competing
provisions and visions are incompatible.
4. The existing Energy Imbalance Market (EIM) is functioning well and is
expanding. Since its launch, the EIM has provided benefits to all participants,
and has provided valuable insight on how an expanded, regional program may
function. At the same time, it is continuing to evolve. Passage of legislation that
diminishes California's governance of the ISO is unwarranted until we can
determine if the benefits of regionalization to California ratepayers could be better
achieved under this existing EIM structure.
For these reasons, AB 813 should not be passed and we urge you to work with the
Senate President Pro Tem and Chair of the Senate Appropriations Committee to prevent
the bill from coming up for a vote on the Senate Floor.
Sincerely,
Alan Nakanishi
Mayor, City of Lodi
Jennifer Ferraiolo
From: Steve Schwabauer
Sent: Wednesday, July 18, 2018 4:18 PM
To: Elizabeth Kirkley; Jennifer Ferraiolo
Subject: Re: FW: CMUA Legislative Committee: Request for Action: Contact Your Senator(s) to
Hold AB 813 (Holden) on the Senate Appropriations Committee Suspense File
Mayor. Work with the clerk. They have a process
On Jul 18, 2018 3:33 PM, Elizabeth Kirkley <ekirkley@lodi.gov> wrote:
See below and attached.
As you can see both NCPA and CMUA are in agreement regarding the Grid Regionalization Bill (AB 813).
Please let me know if you are comfortable with Lodi sending this letter to Senator Galgiani and who you would like to
sign it.
The date request is August 6th.
Thanks,
Liz
From "This Week at NCPA: June 29, 2018":
Despite Significant Concerns from Judiciary Committee Leadership, Grid Regionalization Bill Moves Forward
Earlier this week, the Senate Judiciary Committee passed the highly contentious grid regionalization bill, AB 813 by
Assemblymember Chris Holden (D -Pasadena), via a 4-2 vote. AB 813 would result in the expansion of the California
Independent System Operator into a regional entity, allowing the California Energy Commission to determine that the
newly established governance structure meets legislative requirements and that California should move forward with the
proposal.
Both the Committee Chair Senator Hannah -Beth Jackson (D -Santa Barbara) and Vice Chair Senator Bill Monning (D -
Monterey) voted against the bill. Senator Jackson spoke to many of the concerns raised in Senate Judiciary Committee
staff's 19 -page analysis of the bill, which critiqued the legislation and focused on two legal issues: the Dormant
Commerce Clause and federal pre-emption. With citations to several court cases, the analysis sided with arguments in
opposition to AB 813.
Four members of the Senate Judiciary Committee from both sides of the aisle voted in favor of AB 813, giving it the push
it needed to continue through the process. Senator Bob Hertzberg (D -Van Nuys) withheld his vote despite his previous
strong comments of concern in last week's Senate Energy, Utilities, and Communications Committee hearing and the
bill's failure, to date, to include amendments addressing his issues.
Recall that last week's Senate Energy, Utilities & Communications Committee analysis was equally critical of the policy
arguments. The Chair of Senate EU&C withheld his vote... and, yet, the bill moved forward. The outcomes of both
Committee hearings continue to highlight Governor Brown's direct engagement in this issue as a priority for the
Administration.
NCPA opposes AB 813 due to the significant risks the bill would impose without certain, commensurate benefits. The bill
will be heard in Senate Appropriations Committee in August. We are working with others in opposition to educate the
members of the Senate Appropriations Committee on our issues with the legislation.
1
From: Patrick Welch [mailto:pwelch@cmua.org]
Sent: Wednesday, July 18, 2018 11:12 AM
To: Patrick Welch
Subject: CMUA Legislative Committee: Request for Action: Contact Your Senator(s) to Hold AB 813 (Holden) on the
Senate Appropriations Committee Suspense File
July 18, 2018
To: CMUA Legislative Committee
From: Patrick Welch
Subject: Request for Action: Contact Your Senator(s) to Hold AB 813 (Holden) on the Senate Appropriations
Committee Suspense File
CMUA is requesting that you (Utility Director/GM or City Manager) write a letter to your Senator(s),
call their office or meet with them and/or their staff, to advocate that AB 813 (Holden) be held on the
Senate Appropriations Committee Suspense File. Please try to do so by August 6. Specifically, we want
Senators around the state to let Senate President Pro Tem Toni Atkins and Senate Appropriations Chair
Anthony Portantino know that they want the bill held on the suspense file. Attached is a sample letter you can
use, as well as talking points.
CMUA opposes AB 813, which seeks to expand CAISO to become a regional transmission organization. The bill will be
heard in the Senate Appropriations Committee on August 6; during the committee hearing we anticipate that the
committee will move the bill to the suspense file, a legislative maneuver for bills that cost more than $150,000. The fate
of all the bills placed on the suspense file will be decided on August 17. The Senate Pro Tem and the Chair of the Senate
Appropriations Committee have the ultimate say as to what bills are let off of the suspense file. That's why we would
like you to urge your Senator(s) to let the Pro Tem and the Chair know that they should hold the bill on suspense. If the
Pro Tem and Chair hear from many of their colleagues that will place pressure on them to hold the bill. Given that
Governor Brown is personally advocating for AB 813, if Pro Tem Atkins and Chair Portantino are to push back on the
Governor and hold the bill, they need to feel support from other Senators.
In short, the Senate Appropriations suspense file is a point of leverage we need to use to try to kill the bill. If we are
unsuccessful in our efforts to kill the bill on the suspense file on August 17, we will have to reassess our options in the
remaining two weeks of the Legislative Session.
We've framed the sample letter and talking points to focus on a few key items, including the fact that AB 813 would turn
the keys to California's transmission system over to FERC. This is an especially compelling point against AB 813,
particularly when seeking to convince Democrat legislators to vote against the bill. It's an argument that is gaining
traction; for example, three major newspapers have editorialized against the bill — the San Jose Mercury News, the Los
Angeles Times and the San Diego Union Tribune — in part due to the risk of turning control over to FERC.
Please give me a call with any questions and thank you for your efforts on this matter.
-Patrick
Patrick Welch
Legislative Director for Energy
California Municipal Utilities Association
2
(916) 326-5803 (Office Direct)
(916) 827-7113 (cell/text)
915 L St, Suite 1460
Sacramento, CA 95814
&JCMUA
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3
AMENDED IN SENATE JUNE 12, 2018
AMENDED IN SENATE JUNE 6, 2018
AMENDED IN SENATE MARCH 8, 2018
AMENDED IN SENATE SEPTEMBER 8, 2017
AMENDED IN SENATE AUGUST 31, 2017
AMENDED IN ASSEMBLY MAY 30, 2017
AMENDED IN ASSEMBLY MARCH 21, 2017
CALIFORNIA LEGISLATURE -2017-18 REGULAR SESSION
ASSEMBLY BILL No. 813
Introduced by Assembly Member Holden
(Coauthors: Assembly Members Patterson and Quirk)
(Coauthors: Senators Stern and Wieckowski)
February 15, 2017
An act to add Section 359.5 to, to add Chapter 7 (commencing with
Section 8390) to Division 4.1 of, to repeal Section 352 of, to repeal and
add Section 359 of, and to repeal Article 5.5 (commencing with Section
359.5) of Chapter 2.3 of Part 1 of Division 1 of, the Public Utilities
Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 813, as amended, Holden. Multistate regional transmission system
organization: membership.
Existing law provides for the establishment of an Independent System
Operator (ISO) as a nonprofit public benefit corporation and requires
the ISO to ensure efficient use and reliable operation of the electrical
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AB 813 —2—
transmission grid consistent with achieving planning and operating
reserve criteria no less stringent than those established by the Western
Electricity Coordinating Council and the North American Electric
Reliability Council. The Clean Energy and Pollution Reduction Act of
2015 provides for the transformation of the ISO into a regional
organization, with the approval of the Legislature, pursuant to a specified
process. That process provides that modifications to the ISO's
governance structure, through changes to its bylaws or other corporate
governance documents, will not become effective until the ISO, the
Public Utilities Commission, the State Energy Resources Conservation
and Development Commission, the State Air Resources Board, the
Governor, and the Legislature take specified actions on or before January
1, 2019.
This bill would prohibit a California electrical transmission facility
owner, a retail seller of electricity, or a local publicly owned electric
utility from joining a multistate regional transmission system
organization, as defined, unless the bylaws or other organizational
documents that govern the organization, and the organization's
operations, meet Federal Energy Regulatory Commission requirements
and other specified requirements. The bill would require a California
transmission owner, retail seller, or local publicly owned electric utility,
before joining a multistate regional transmission system organization,
to submit the bylaws and other organizational documents that govern
the multistate regional transmission system organization to the State
Energy Resources Conservation and Development Commission (Energy
Commission) for review. The bill would require the Energy
Commission, in consultation with the Public Utilities Commission
(PUC) and the State Air Resources Board (state board), to review those
materials for compliance with the bill's requirements. The bill would
prohibit a California transmission owner, retail seller, or local publicly
owned electric utility from joining the multistate regional transmission
system organization unless the Energy Commission has determined
that the organization's bylaws and organizational documents meet those
requirements. If a California transmission owner, retail seller, or local
publicly owned electric utility has joined an independent system operator
that becomes a multistate regional transmission organization and the
Energy Commission determines that the organization's bylaws and
organizational documents do not meet those requirements, the bill would
require that the California transmission owner, retail seller, or local
publicly owned electric utility not remain in the organization. The bill
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-3— AB 813
would authorize the ISO to develop and submit to the Energy
Commission a governance proposal that complies with those
requirements, require the Energy Commission, in consultation with the
PUC and state board, to review the proposal for compliance with the
bill's requirements, and, if the Energy Commission determines that the
proposal meets those requirements and if a transmission owner from
outside California that is not a participating transmission owner as of
January 1, 2019, has entered into an agreement with the ISO indicating
an intent to become a participating transmission owner, would authorize
the ISO to proceed to implement the proposal. The bill would prohibit
the ISO from implementing the new governance structure prior to
January 1, 2021.
Existing law establishes the California Renewables Portfolio Standard
Program, which requires the PUC to establish a renewables portfolio
standard requiring all retail sellers, defined as including electrical
corporations, to procure a minimum quantity of electricity products
from eligible renewable energy resources, as defined, so that the total
kilowatthours of those products sold to their retail end-use customers
achieves certain percentages of retail sales by certain dates. The
program additionally requires each local publicly owned electric utility
to procure a minimum quantity of electricity products from eligible
renewable energy resources to achieve the procurement requirements
established by the program. The program, consistent with the goals of
procuring the least -cost and best -fit eligible renewable energy resources
that meet project viability principles adopted by the commission,
requires that all retail sellers and local publicly owned electric utilities
procure a balanced portfolio of electricity products from specified
categories of eligible renewable energy resources, known as portfolio
content categories. Existing law provides that electricity products may
be differentiated for these purposes by their impacts on the operation
of the electrical grid in supplying electricity, as well as meeting the
requirements of the program.
If ISO becomes a multistate regional transmission system
organization and thereafter operates an expanded balancing authority
area that includes one or more new participating transmission owners
located outside of California, this bill would specify that the boundary
of the balancing authority area used for determining the portfolio
content categories is the boundary of the Independent System Operator's
balancing authority area as of December 31, 2018. However, if another
balancing authority in California elects to join the ISO's balancing
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AB 813 —4—
authority area, the bill would add the facilities of that balancing
authority to the ISO's balancing authority area for purposes of
determining the portfolio content categories.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. (a) In enacting this act, it is the intent of the
2 Legislature to enable the transition of the Independent System
3 Operator to a regional governance structure. To that end, it is the
4 intent of the Legislature that the Independent System Operator
5 continue the work it began with stakeholder groups throughout
6 the region that resulted in the "Second Revised Proposal: Principles
7 for Governance of a Regional ISO" published on October 7, 2016
8 (October 2016 Proposal).
9 (b) The October 2016 Proposal included a two-step process for
10 selecting regional board members that consisted of the following:
11 (1) a stakeholder -based nominating committee that selects
12 nominees with the assistance and support of a professional search
13 firm and (2) an approval committee, consisting of the voting
14 members of the western states committee, which would confirm
15 each slate of nominees. It is the intent of the Legislature that the
16 Independent System Operator continue to work with regional
17 stakeholders to develop and refine this proposal, subject to its
18 public process.
19 (c) The October 2016 Proposal proposed that the western states
20 committee would also have primary approval authority over certain
21 regional Independent System Operator proposals on specific topics
22 within the subject areas of transmission cost allocation and resource
23 adequacy. In that proposal, primary authority means the committee
24 will play the lead role for its defined areas of authority, and
25 approval by the committee would be a prerequisite for any filing
26 made by the Independent System Operator with the Federal Energy
27 Regulatory Commission pursuant to Section 205 of the Federal
28 Power Act (16 U.S.C. Section 824d) for approval of tariff
29 provisions in those areas. It is the intent of the Legislature that the
30 Independent System Operator continue to work with regional
31 stakeholders to develop and refine this proposal, subject to its
32 public process.
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1 SEC. 2. Section 352 of the Public Utilities Code is repealed.
2 SEC. 3. Section 359 of the Public Utilities Code is repealed.
3 SEC. 4. Section 359 is added to the Public Utilities Code, to
4 read:
5 359. (a) The Independent System Operator's Board of
6 Governors may develop and submit to the Energy Commission a
7 governance proposal that complies with each of the requirements
8 of Section 8391.
9 (b) For purposes of meeting the requirements of subdivision (n)
10 of Section 8391, the proposal shall provide for the establishment
11 of a western states' committee. The committee shall have three
12 representatives from each state that has a transmission owner
13 participating in the Independent System Operator. The
14 representatives from California shall be appointed by the Governor,
15 subject to confirmation by the Senate. The committee shall provide
16 guidance to the Independent System Operator on all matters of
17 interest to more than one state.
18 (c) The open meeting policy and records availability policy of
19 the Independent System Operator in effect as of January 31, 2018,
20 shall meet the requirements of subdivisions (d) and (f) of Section
21 8391.
22 (d) The Energy Commission, in consultation with the Public
23 Utilities Commission and the State Air Resources Board, shall
24 review the governance proposal for compliance with the
25 requirements of Chapter 7 (commencing with Section 8390) of
26 Division 4.1. This review shall include public review of, and
27 written comment on, the proposal and at least one public workshop
28 or hearing at which public comment is received.
29 (e) If the Energy Commission determines that the governance
30 proposal meets the requirements of Chapter 7 (commencing with
31 Section 8390) of Division 4.1 and if a transmission owner from
32 outside California that is not a participating transmission owner
33 as of January 1, 2019, has entered into an agreement with the
34 Independent System Operator indicating its intent to become a
35 participating transmission owner and the Federal Energy
36 Regulatory Commission has approved any changes to the
37 Independent System Operator's tariff necessary for the new
38 participating transmission owner to join, then the Independent
39 System Operator may proceed with implementing a governance
40 structure consistent with the proposal. The new governance
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AB 813 —6-
1 structure shall not be implemented before January 1, 2021. Upon
2 completing implementation of the governance structure, the
3 Independent System Operator or its successor shall provide notice
4 to the Energy Commission.
5 (f) (1) The Energy Commission shall verify that the Independent
6 System Operator has implemented a governance structure
7 consistent with this section and, upon so verifying, shall promptly
8 provide notice to the Secretary of State. Upon receipt of notice by
9 the Secretary of State, Article 2 (commencing with Section 334),
10 Section 345.5, and Sections 346 to 349, inclusive, shall become
11 inoperative.
12 (2) The Energy Commission shall report to the Legislature its
13 verification and notification to the Secretary of State pursuant to
14 paragraph (1). The report to the Legislature shall be submitted in
15 compliance with Section 9795 of the Government Code.
16 SEC. 5. Section 395.5 is added to the Public Utilities Code, to
17 read:
18 395.5. (a) If the Independent System Operator becomes a
19 multistate regional transmission system organization pursuant to
20 the process set forth in Section 359 and thereafter operates a
21 balancing area that expands beyond the Independent System
22 Operator's balancing authority area as for December 31, 2018,
23 to include one or more new participating transmission owners
24 located outside of California, the balancing authority area
25 boundary used for determining compliance with the requirements
26 of Section 399.16, except as provided in subdivision (b), shall
27 continue to be the boundary of the Independent System Operator's
28 balancing authority area as of December 31, 2018.
29 (b) If another balancing authority in California elects to join
30 the Independent System Operator 's balancing authority area, the
31 balancing authority used for determining compliance with the
32 requirements of Section 399.16 shall include facilities of that other
33 balancing authority that are added to the Independent System
34 Operator 's balancing authority area.
35 SEC. 5.
36 SEC. 6. Article 5.5 (commencing with Section 359.5) of
37 Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is
38 repealed.
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-7— AB 813
1 SEC. 6.
2 SEC. 7. Chapter 7 (commencing with Section 8390) is added
3 to Division 4.1 of the Public Utilities Code, to read:
4
5 CHAPTER 7. MULTISTATE REGIONAL TRANSMISSION SYSTEM
6 ORGANIZATIONS
7
8 8390. For purposes of this chapter, the following terms have
9 the following meanings:
10 (a) "California participating transmission owner" means a
11 California transmission owner that has become a participating
12 transmission owner by turning over operational control of some
13 or all of its bulk electrical transmission facilities to an independent
14 system operator or a multistate regional transmission system
15 organization.
16 (b) "California transmission owner" means an electrical
17 corporation, local publicly owned electric utility, or other entity
18 that owns bulk electrical transmission facilities located in
19 California.
20 (c) Except as provided in Section 8394, "multistate regional
21 transmission system organization" means an entity that the Federal
22 Energy Regulatory Commission has determined satisfies the
23 requirements for operating as an independent system operator or
24 regional transmission organization and that has participating
25 transmission owners from multiple states.
26 (d) "Retail seller" has the same meaning as defined in Section
27 399.12.
28 8391. A California transmission owner, retail seller, or local
29 publicly owned electric utility shall not join a multistate regional
30 transmission system organization as a California participating
31 transmission owner unless the bylaws or other organizational
32 documents that govern the organization and its operations meet
33 Federal Energy Regulatory Commission requirements and do all
34 of the following:
35 (a) Prohibit a member of the governing board of the organization
36 from any affiliation with a participant in any market overseen by
37 the organization. A member of the governing board also shall not
38 have been an employee of a market participant within two years
39 prior to becoming a member of the board.
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AB 813 —8-
1 (b) Limit conflicts of interest by prohibiting any member of the
2 governing board from directly owning any interest in energy-related
3 assets that are appreciably affected by the actions of the
4 organization and by requiring annual disclosure of significant
5 financial interests.
6 (c) Provide for and maintain a decisionmaking process that is
7 independent of control by any market participant or class of
8 participants.
9 (d) Provide for and maintain open meeting standards and
10 meeting notice requirements that are consistent with the general
11 policies of the Bagley -Keene Open Meeting Act (Article 9
12 (commencing with Section 11120) of Chapter 1 of Part 1 of
13 Division 3 of Title 2 of the Government Code) and afford the
14 public the greatest possible access to meetings, consistent with
15 other duties of the organization.
16 (e) Subject to reasonable measures to limit the length of
17 meetings or disruptions to meetings, authorize interested members
18 of the public and representatives of customers to participate in
19 person or through remote electronic means in meetings of the
20 governing board and in the meetings of any advisory group to the
21 governing board.
22 (f) Provide public access to the records of the organization
23 consistent with the general policies of the California Public Records
24 Act (Chapter 3.5 (commencing with Section 6250) of Division 7
25 of Title 1 of the Government Code), consistent with the other duties
26 of the organization.
27 (g) Require that the governing documents of the organization
28 be posted and maintained on the organization's public Internet
29 Web site.
30 (h) Protect and preserve a state's authority over matters regulated
31 by the state, including procurement policy, resource planning, and
32 resource or transmission siting within the state.
33 (i) (1) Require retail sellers in each state to meet minimum
34 resource adequacy standards and permit each state to establish
35 resource adequacy standards for its retail sellers that exceed those
36 required by federal law, in the state's discretion.
37 (2) Require a participating local publicly owned electric utility
38 in each state to meet minimum resource adequacy standards and
39 permit the governing board of a participating local publicly owned
40 electric utility to establish resource adequacy standards that exceed
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-9— AB 813
1 those required by federal law, in the discretion of the governing
2 body.
3 (j) Prohibit the multistate regional transmission organization
4 from operating a centralized capacity market in California for the
5 forward procurement of electrical generating capacity that requires
6 capacity to clear at a market clearing price in order to count for
7 resource adequacy purposes.
8 (k) Ensure that the dispatch of resources by the multistate
9 regional transmission organization to serve load in California
10 appropriately reflects the costs for resources to comply with
11 California's climate policies, as implemented by the State Air
12 Resources Board. The multistate regional transmission system
13 organization shall maintain a transparent system for tracking
14 emissions of greenhouse gases resulting from resources dispatched
15 to serve California load.
16 (1) Establish and maintain equitable transmission cost allocation
17 rules through an open stakeholder process approved by the Federal
18 Energy Regulatory Commission. The rules shall ensure that
19 California participating transmission owners receive equitable use
20 of, and just and reasonable compensation for, their past investments
21 in the transmission system assets for which operational control is
22 transferred to a multistate regional transmission system
23 organization.
24 (m) Enhance the competitive structure of the organization by
25 providing for and maintaining an independent market monitor.
26 (n) Establish a clear process, structure, and organizational
27 support for state regulators within the region served by the
28 multistate regional transmission system organization to collaborate
29 and provide guidance to the organization on matters of interest to
30 more than one state, including on issues relating to the
31 organization's independent market monitoring function established
32 by the Federal Energy Regulatory Commission.
33 (o) Enable participation of demand response, storage, and other
34 distributed energy resources in the organization's markets.
35 (p) Provide for and maintain a process for obtaining stakeholder
36 input on policy initiatives requiring approval of the Federal Energy
37 Regulatory Commission that is open to all members of the public
38 and that does not require payment of a membership fee or other
39 charge to participate.
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AB 813 —10-
1 (q) Ensure the right of any participating transmission owner to
2 unilaterally withdraw from the multistate regional transmission
3 system organization, with or without cause, upon giving reasonable
4 notice, not to exceed two years.
5 8392. This chapter does not require any California transmission
6 owner, retail seller, or local publicly owned electric utility to join
7 or remain in a multistate regional transmission system organization.
8 8393. (a) A California transmission owner, retail seller, or
9 local publicly owned electric utility shall, before joining a
10 multistate regional transmission system organization, submit the
11 bylaws and other organizational documents that govern the
12 multistate regional transmission system organization to the Energy
13 Commission for review.
14 (b) Unless specified otherwise in Section 8391, the Energy
15 Commission, in consultation with the commission and the State
16 Air Resources Board, shall review the bylaws and organizational
17 documents that govern the multistate regional transmission system
18 operator for compliance with the requirements of Section 8391.
19 This review shall include public review of, and written comment
20 on, the materials and at least one public workshop or hearing at
21 which public comment is received.
22 (c) A California transmission owner, retail seller, or local
23 publicly owned electric utility shall not join a multistate regional
24 transmission system organization unless the Energy Commission
25 has determined that the organization's bylaws and organizational
26 documents meet the requirements of Section 8391. If a California
27 transmission owner, retail seller, or local publicly owned electric
28 utility has joined an independent system operator that becomes a
29 multistate regional transmission organization and the Energy
30 Commission determines that the organization's bylaws and
31 organizational documents do not meet the requirements of Section
32 8391, the California transmission owner, retail seller, or local
33 publicly owned electric utility shall not remain in the organization.
34 8394. The Independent System Operator shall not be deemed
35 to be a multistate regional transmission system organization unless
36 and until it has completed the governance change process
37 requirements of Section 359 and the Energy Commission has
92
-11— AB 813
1 provided notice of this change to the Secretary of State pursuant
2 to paragraph (1) of subdivision (e) of that section.
0
92