(a) The Legislature finds and declares all of the following:
(1) California has significantly reduced the emissions of greenhouse gases from its electricity sector by fostering the development of renewable and zero-carbon energy resources through the establishment of ambitious goals and policies. These efforts have fundamentally transformed the state’s portfolio of energy resources and the day-to-day operations of the state’s electrical system.
(2) The state has enabled the expansion of electrical retail choice for customers served in electrical corporation service territory, bringing new market entrants and innovation to California’s evolving retail electricity market.
(3) The state’s electrical system also faces the risk of increased disruption due to more frequent and intense extreme weather events fueled by a rapidly changing climate.
(4) For California to achieve its long-term greenhouse gas emission reduction goals, while maintaining a reliable electrical system and providing customers with greater choice in electricity retail providers, the state must establish a new, limited central procurement function within the department that enables the development of a more diverse portfolio of renewable and zero-carbon energy resources.
(b) In enacting this division, it is the intent of the Legislature to do all of the following:
(1) Create a central procurement function within the department that would only be exercised
if, pursuant to paragraph (4) of subdivision (a) of Section 454.52 of the Public Utilities Code, the commission determines that there is a need for the procurement of additional eligible energy resources and requests the department to procure those resources and, in response to that request, the department elects to exercise that central procurement function to procure those resources pursuant to this division.
(2) If the department exercises that central procurement function, as described in paragraph (1), provide an opportunity for local publicly owned electric utilities to elect for the department to procure eligible energy resources on their behalf pursuant to Section 80822.
(3) Prohibit the department from recovering funds pursuant to a nonbypassable charge on the ratepayers of a load-serving entity for purposes other than providing for the department’s acquisition costs for
eligible energy resources, including transmission, scheduling, financing, program administration, and other related costs, pursuant to Section 80821.
(4) Prohibit the department from selling any eligible energy resources it acquires pursuant to this division at more than the department’s acquisition costs, including transmission, scheduling, financing, program administration, and other related costs, when selling those resources under a long-term contract.
(5) Pursuant to Section 80821, prohibit the department from pursuing procurement activities, including, if authorized, the issuance of bonds, except upon a finding from the commission that the recovery of costs through charges on customers, the issuance of bonds, and the material terms of such bonds, including interest rates, rating, amortization, and maturity, do not unreasonably increase costs to customers on a net present
value basis.
(6) Require the department to prioritize investments that do not compete with the procurement of eligible energy resources already planned for development and disclosed by load-serving entities or local publicly owned electric utilities.
(Added by Stats. 2023, Ch. 367, Sec. 15. (AB 1373) Effective October 7, 2023.)
The development and operation of a central procurement function program by the department, as provided in this division, is in all respects for the welfare and benefit of the people of the state, to protect the public peace, health, and safety, and constitutes an essential government purpose.
(Added by Stats. 2023, Ch. 367, Sec. 15. (AB 1373) Effective October 7, 2023.)
(a) The powers and responsibilities of the department established pursuant to this division are separate from, and not governed by, the provisions relating to the State Water Resources Development System, including, but not limited to, those powers and responsibilities granted pursuant to Part 3 (commencing with Section 11100) of Division 6 and the California Water Resources Development Bond Act (Chapter 8 (commencing with Section 12930) of Part 6 of Division 6).
(b) This division does not subject the department to the jurisdictional authority of the commission or expand the jurisdiction of the commission, including that state water resources development system facilities subject to the California Water Resources Development Bond Act (Chapter
8 (commencing with Section 12930) of Part 6 of Division 6) and the department’s other electrical generation projects or power contracts outside of those funded through the fund, remain outside the jurisdiction of the commission.
(Added by Stats. 2023, Ch. 367, Sec. 15. (AB 1373) Effective October 7, 2023.)