Energy: firm zero-carbon resources.

Senator Stern's proposal to integrate firm zero-carbon resources into California's energy framework establishes new requirements for state agencies to evaluate and deploy these resources across the electrical grid. The legislation directs the Energy Commission to identify funding programs and mechanisms by July 2026 that could support firm zero-carbon resource deployment, including assessment of current and projected capacity needs.

The Public Utilities Commission would develop processes by December 2026 for load-serving entities to solicit and propose firm zero-carbon projects meeting local reliability needs. These projects must deploy least-cost options, enhance grid reliability during extended stress conditions, increase resource diversity, and reduce emissions in disadvantaged communities. The PUC must also produce a detailed report on opportunities and needs for local reliability using firm zero-carbon resources across different timeframes, examining resource attributes, deployment scenarios, priority regions, and potential market barriers.

The bill requires load-serving entities to incorporate firm zero-carbon resources into their integrated resource planning, ensuring appropriate development occurs in local reliability areas. The PUC may propose pilot market mechanisms to encourage timely procurement of these resources. While creating new regulatory requirements, the legislation specifies that local agencies are exempt from state reimbursement obligations since any new costs would stem from modifications to existing criminal provisions under the Public Utilities Act.