(a) On or before February 1, 2023, and biennially thereafter, the commission, in consultation with the Independent System Operator and the Energy Commission, shall report to the Legislature and the Governor on the progress made toward modernizing the state‘s distribution and transmission grid and the impacts of distributed energy resources on the state’s distribution and transmission grid and ratepayers. The report shall evaluate all of the following:

(1) Reliability and transmission issues related to connecting distributed energy resources to the local distribution networks and regional grid.

(2) Issues related to grid reliability and operation, including interconnection, and the position of federal and state regulators toward distributed energy resource accessibility.

(3) The effect on overall grid operation of various distributed energy resources.

(4) Barriers affecting the connection of distributed energy resources to the state’s grid.

(5) Emerging technologies related to distributed energy resource interconnection and operation.

(6) Interconnection issues that may arise for the Independent System Operator and local distribution companies.

(7) The effect on peak demand for electricity.

(8) The potential for distributed energy resources to benefit the state’s distribution and transmission grid.

(b) In addition, the commission shall specifically assess the impacts of the California Solar Initiative program, specified in § 25781 of the Public Resources Code and Section 2851, the self-generation incentive program authorized by Section 379.6, and the net energy metering program specified in Sections 2827 and 2827.1.

(Amended by Stats. 2021, Ch. 228, Sec. 5. (AB 242) Effective January 1, 2022.)