Bill > SB540

This bill establishes a comprehensive framework for potential participation of California's Independent System Operator (ISO) in a regional energy market governed by an independent regional organization. The bill creates stringent requirements for such participation, including mandating that the regional organization respect state policy authority, maintain transparent governance, provide consumer advocacy funding, and ensure market data availability. A new Regional Energy Market Oversight Council, composed of key state officials led by the Attorney General, would have the power to approve or disapprove initial participation and order withdrawal if certain state interests are compromised. The bill allows the ISO to implement market changes after January 1, 2028, but only after meeting extensive criteria and obtaining council approval. Notably, the bill prohibits the regional organization from establishing centralized capacity markets or mandatory resource adequacy requirements, and ensures that California ratepayers are protected from bearing undue costs. The legislation also requires the ISO to maintain technical capabilities to operate separate markets if needed and to continue functioning as a balancing authority. Additionally, the bill includes provisions related to the California Renewables Portfolio Standard, specifically addressing how renewable energy resources outside California's balancing authority can demonstrate eligibility for procurement requirements.

Budget and Finance, Justice, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB540