Electricity: transmission planning and transmission facilities.

The primary FERC order reference was changed from 'Order 1920-A, as published in Volume 89 of the Federal Register, Number 97174' to 'Order 1920, as later clarified by FERC Order 1920-A and FERC Order 1920-B.' This broadens the regulatory framework the bill references from a specific clarification order to the base order itself.

The requirement that transmission-focused guidance be provided 'on a recurring basis' was removed, giving the PUC more flexibility on the frequency of guidance updates to the ISO.

The detailed two-stage modeling requirement (requiring a near-term planning stage and a long-term planning stage with differential outcomes of planning uncertainties) was replaced with a simpler requirement to 'use methods that enable decisionmaking under uncertainty, such as robust optimization or stochastic optimization.'

The regional allocation criteria for resource portfolios were narrowed from 'technical feasibility, resource quality and availability, and commercial interest' to just 'technical feasibility and commercial interest,' removing 'resource quality and availability' as a required consideration.

Two separate guidance requirements were removed entirely: (1) ensuring 'sufficient infrastructure capacity to facilitate cost-effective procurement' of certain resources, and (2) 'improvements to resource diversity and competition by increasing interconnection capacity to specific locations that reflect resource availability.'

Section 454.57.5 of the Public Utilities Code, which was referenced in the amended version's short title as a new addition, is no longer included in the enrolled bill.

The definition of 'planning uncertainties' was simplified by removing 'including, but not limited to' and 'and other factors,' making the list of examples (load growth, resource availability, technology costs) more exclusive. The 'risk prudent' definition was also trimmed by removing 'For purposes of this subparagraph' language and 'improving preparations for other contingencies.'

The stress testing requirement was changed from examining costs and risks 'in a public new or existing proceeding' to simply 'in a new or existing proceeding,' removing the explicit 'public' qualifier.

Federal compliance scope expanded: references to FERC Order 1920-A alone were replaced with references to 'FERC Order 1920, as later clarified by FERC Order 1920-A and FERC Order 1920-B,' broadening the range of federal orders the commission's guidance must support.

Technical methods requirement relaxed: the obligation to use methods that 'endogenously account for planning uncertainties' was changed to methods that 'enable decisionmaking under uncertainty, such as robust optimization or stochastic optimization,' giving the commission more flexibility in its analytical approach.

New requirement that transmission-focused guidance 'takes into account uncertainty and optionality' in addition to being risk prudent and supporting FERC compliance.

The deadline 'beginning as soon as possible and not later than March 31, 2024' for the commission to begin providing transmission-focused guidance was removed, eliminating a specific start date obligation.

Stress testing of candidate near-term planning decisions may now occur 'in a public new or existing proceeding' rather than only 'in a public proceeding,' allowing the process to be folded into an already-open case rather than requiring a new one.

New Section 3.5 (SEC. 3.5) adds an alternative version of Section 454.57 that would apply only if both AB 2111 and AB 2369 are enacted and AB 2111 is enacted last, creating a conditional coordination mechanism between the two bills.

The definition of 'planning uncertainties' was slightly revised to add 'such as' before the list of examples (load growth, resource availability, technology costs), making the list illustrative rather than exhaustive. The 'improve adaptability' definition was restructured with minor wording changes.

The PUC must now provide transmission-focused guidance to the ISO on a recurring basis, rather than under a less specific timing requirement. This ensures ongoing updates to the ISO's planning inputs.

Regional resource allocation in the guidance must now consider 'resource quality and availability' in addition to technical feasibility and commercial interest, giving the PUC a broader set of factors when directing where transmission should be built.

The requirement to submit portfolios to the ISO was changed from 'at least three actionable resource portfolios derived from the candidate resource portfolios' to simply 'at least three resource portfolios,' removing the word 'actionable' and the derivation language, which slightly lowers the specificity of what must be submitted.

The criteria for improving resource diversity and competition now explicitly includes 'projects with site control in areas of high resource potential,' expanding which projects can benefit from increased interconnection capacity.

Senator McNerney was added as a coauthor alongside Assembly Member Papan, indicating bipartisan or cross-chamber support for the bill.

References to FERC Order 1920-A now include the phrase 'as applicable' in multiple places, providing flexibility if the order is amended or superseded by future federal action.

The definition of 'risk prudent' was restructured from three characteristics (A, B, C) to two (A, B), consolidating the overlapping 'not dependent on perfect foresight' language that appeared in both A(ii) and C. The adaptability clause now specifies 'diverse resources' rather than just 'resources.'

Section 454.57(d)(2) now explicitly requires the PUC's transmission-focused guidance to support compliance with FERC Order 1920-A, and restructures the methodology requirements around a two-stage planning process (near-term decisions followed by long-term decisions that vary based on differential outcomes of planning uncertainties).

New subparagraph (E) in Section 454.57(d)(2) requires that resource portfolios submitted to the ISO support resources identified as under contract in integrated resource plans and the interconnection of resources of strategic importance to load-serving entities.

The requirement for supplemental or accelerated transmission needs was narrowed: the old version required these needs be 'identified as risk prudent and improve adaptability, reduce risk, or support a competitive market for resource procurement,' while the new version simply requires identifying 'any supplemental or accelerated transmission needs, beyond the requirements of an individual resource portfolio.'

The PUC's role in approving transmission projects shifted from projects 'found to be reasonable' (implying an objective standard) to projects 'the commission finds to be reasonable,' placing the determination explicitly with the PUC.

New requirement in Section 454.57(d)(2)(C)(ii) that the PUC provide the ISO with relevant load forecasts and resource availability assumptions for each resource portfolio submitted.

The definition of 'risk prudent' in Section 454.51 was restructured from three characteristics to two: the new clause (A) combines achieving state objectives across plausible futures with the requirement that plans not depend on perfect foresight, while clause (B) retains the adaptability requirement with minor language changes.

Removed from Section 454.57(d)(1)(B) the sentence requiring the PUC to consider the need to maintain a competitive market for resource procurement when determining if there is sufficient infrastructure capacity.

State policy goals in Section 454.57(h) were narrowed: 'adaptability' was removed from the reliability goal, and the separate goal of 'decreasing systemwide risk in a cost-effective and risk-prudent manner' was eliminated entirely.

Section 25308.1 changed from requiring entities to 'incorporate into an update of' the MOU to simply 'update' the MOU and workplan, a simplification that does not change the substantive obligation.

The MOU update requirement (new Section 25308.1) no longer mandates 'best available methods of decisionmaking under uncertainty.' Instead, revisions must support development of resource portfolios and transmission approvals that are 'cost effective and risk prudent' and must equip the ISO with at least three portfolios representing state policy needs.

Section 454.57(d)(2) now requires the PUC to submit at least three actionable resource portfolios to the ISO (previously at least one adaptable, low-risk portfolio). The new requirement also adds a new subparagraph (F) requiring that guidance be implemented in a manner ensuring rates remain just and reasonable under Section 451.

Section 454.51(a) removes the specific language requiring the portfolio to maintain 'ratepayer affordability across a range of future uncertainties, including load growth, in-state and out-of-state resource availability, and technology cost.' It is replaced with the simpler standard of 'cost-effective and risk-prudent manner.'

Legislative finding (9) in Section 454.57(b) now includes the phrase 'while ensuring that associated costs are just and reasonable for ratepayers,' adding an explicit cost-reasonableness consideration to the urgency of accelerating transmission buildout.

The policy goals list in Section 454.57(h) removes the standalone goal of 'maintaining ratepayer affordability across a range of future uncertainties' and consolidates risk-related language into a single goal of 'decreasing systemwide risk in a cost-effective and risk-prudent manner.' The summary section adds 'reducing resource interconnection timelines' as a state policy goal.

The definition of 'risk prudent' in Section 454.51(f)(2) is largely retained but the specific enumeration of uncertainty types (load growth, resource availability, technology cost) that appeared in the main body of subdivision (a) is removed from that provision, leaving those details only in the 'planning uncertainties' definition.

The amendment to Section 454.52 (integrated resource planning) was removed entirely, including the requirement that the PUC complete a transmission and interconnection availability assessment before approving procurement of certain resources.

The amendment to Section 25308 (five-year MOU review) was removed. The bill no longer amends that section; it only adds and repeals new Section 25308.1.

New formal definitions of 'Planning uncertainties' and 'Risk prudent' were added to Section 454.51. 'Risk prudent' is defined as achieving state objectives across a range of plausible futures, accounting for adaptability of near-term decisions, and not depending on perfect foresight.

A new requirement was added in Section 454.57 requiring the PUC to provide separate transmission-focused guidance to the ISO that is risk prudent and uses methods that endogenously account for planning uncertainties, including robust optimization and stochastic optimization, stress testing of near-term decisions, and submission of at least three actionable resource portfolios to the ISO.

Section 454.51(a) now requires the portfolio to be developed in a 'cost-effective manner that maintains ratepayer affordability across a range of future uncertainties, and risk-prudent manner,' adding the risk-prudent standard to the existing cost-effectiveness standard.

Section 25308.1 was restructured from two requirements to three, adding a new requirement that the commission provides load forecasts to support risk-prudent planning by the PUC, and adding 'cost effective and risk prudent' language to the portfolio evaluation methods requirement.

New Section 25308.1 requires the Energy Commission and PUC, by January 1, 2028, to equip the ISO with at least three resource portfolios representing state policy needs for transmission planning under FERC Order 1920-A, and to introduce a mechanism for the PUC to provide guidance on supplemental or accelerated transmission needs to improve system adaptability, reduce risk, or support competitive resource procurement. The section sunsets on January 1, 2029.

The PUC's guidance to the ISO must now include both sufficient infrastructure capacity for cost-effective resource procurement and improvements to resource diversity and competition by increasing interconnection capacity at specific locations that reflect resource availability.

The annual requirement for submitting projections of resource portfolios and electricity demand by region is removed.

The required planning horizon for resource portfolios and electricity demand projections by region is extended from at least 15 years to at least 20 years into the future.

New state policy goals are added: increasing systemwide adaptability and maintaining ratepayer affordability across a range of future uncertainties, alongside the existing goals of reliability and cost efficiency.

The PUC must make available on its internet website all nonconfidential input and output data used in integrated resource planning and transmission planning processes, beginning on or before January 1, 2028.

The bill now explicitly imposes a state-mandated local program by creating a new crime (violation of a PUC action implementing the bill's requirements), which triggers constitutional reimbursement provisions for local agencies and school districts.