769.4.
(a) (1) Within one year following the adoption of a transmission plan by the Independent System Operator through the transmission planning process, or a successor process, each large electrical corporation or transmission owner that is assigned to construct a project that requires approval by the commission, or within one year following the execution of a generator interconnection agreement that obligates a large electrical corporation or transmission owner to construct a project that requires approval by the commission, the large electrical corporation or transmission owner shall submit to the transmission development monitor established pursuant to subdivision (b) a project-specific schedule for the project, including, at a minimum, both of the following:
(A) The anticipated date by which the large electrical corporation or transmission owner will file an application or other notice with the commission, as applicable, pursuant to General Order 131-E.
(B) The anticipated dates for completion of key interim steps toward the filing in subparagraph (A), including engineering design, environmental studies, and, if applicable, initiation of the prefiling consultation required under General Order 131-E.
(2) For a project eligible for competitive solicitation pursuant to the transmission planning process, the one-year period specified in paragraph (1) shall run from the date the Independent System Operator selects a project sponsor for the project, rather than from the date of adoption of the transmission plan.
(3) If a large electrical corporation or transmission owner determines that it will not meet a date specified in a schedule submitted pursuant to paragraph (1), the large electrical corporation or transmission owner shall promptly notify the transmission development monitor of the anticipated revision, and shall provide a revised date and a written explanation of the reason for the revision.
(4) The transmission development monitor shall track each large electrical corporation’s or transmission owner’s performance against the schedules the large electrical corporation or transmission owner submitted pursuant to paragraph (1), including the frequency, duration, and stated reasons for any revisions made pursuant to paragraph (3), and shall include this information in the annual report required pursuant to subdivision (b).
(5) (A) A pattern of repeated revisions to a schedule submitted pursuant to paragraph (1), or a substantial deviation between the schedule and the large electrical corporation’s or transmission owner’s actual performance, that the transmission development monitor determines is not attributable to factors beyond the large electrical corporation’s or transmission owner’s reasonable control, constitutes a material deficiency.
(B) In assessing a pattern of repeated revisions to a schedule or a substantial deviation between a schedule and the large electrical corporation’s or transmission owner’s actual performance, the transmission development monitor shall consider, as mitigating factors, time reasonably spent by the large electrical corporation or transmission owner awaiting or participating in environmental reviews undertaken pursuant to state or federal law, seeking applicable federal, state, or local land use permits, acquiring land or access rights, modifying a project to comply with public safety obligations or previously unidentified environmental factors, awaiting delivery of project materials or components affected by supply chain constraints, and other project-specific contingencies.
(C) If a large electrical corporation or transmission owner fails to submit a schedule required by paragraph (1), or fails to provide a notice required by paragraph (3), the commission shall take appropriate enforcement action pursuant to Section 701.
(b) (1) On or before October 1, 2027, the commission shall establish a transmission development monitor within the commission. The transmission development monitor shall, on a continuous basis, monitor and review each large electrical corporation’s or transmission owner’s submissions pursuant to commission Resolution E-5252 and subparagraph (B) of paragraph (2) of subdivision (a) of Section 399.13, progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, compliance with subdivision (a), and compliance with any remedial actions ordered by the commission pursuant to subdivision (c).
(2) The transmission development monitor shall prepare, and submit to the commission, an annual report related to the transmission development monitor’s actions taken pursuant to paragraph (1). The annual report shall be posted on the commission’s internet website and incorporated into the commission’s annual reporting requirements pursuant to subdivision (g) of Section 913.4. The transmission development monitor may engage directly with a large electrical corporation or transmission owner between annual reports to obtain current project information, identify emerging or potential delays, and assess compliance.
(3) To the extent reasonably ascertainable, an annual report submitted pursuant to paragraph (2) shall determine whether project delays are primarily attributable to a large electrical corporation or transmission owner, a generator interconnection customer, a transmission developer, the Independent System Operator, a permitting agency, or another third party. In making this determination, the transmission development monitor shall consider whether a large electrical corporation’s or transmission owner’s completion of network upgrades or other prerequisite obligations affected the timing of any milestones attributed to a generator interconnection customer, transmission developer, or other third party.
(4) In addition to the annual report required pursuant to paragraph (2), the transmission development monitor shall provide recommendations to the commission on updates to reporting requirements to provide stakeholders with project statuses, milestones, causes of delay, and potential remedial actions, and shall notify the commission within 15 days of identifying a material deficiency.
(5) In carrying out its monitoring responsibilities under this subdivision, the transmission development monitor may request information from a generator or developer with an interconnection agreement dependent on a transmission project subject to this section. A request for information pursuant to this paragraph shall not delay or otherwise interfere with an ongoing interconnection or transmission project, and shall not impose reporting obligations on a generator or developer beyond providing the specific information requested by the transmission development monitor for purposes of monitoring and review. The transmission development monitor may enter into, and may require a generator or developer providing information pursuant to this paragraph to enter into, a nondisclosure agreement to protect market-sensitive information, and may report findings based on that information in an anonymized form.
(6) (A) On or before April 1, 2027, the commission shall adopt standardized data reporting templates and accounting procedures applicable to all large electrical corporations and transmission owners for submissions reviewed pursuant to this subdivision. In developing the standardized data reporting templates, the commission shall, to the maximum extent feasible, use existing reporting platforms, data submissions, and tracking systems, including the transmission planning process, the Transmission Development Forum, and reports required pursuant to Section 913.4, to avoid imposing duplicative reporting obligations on large electrical corporations or transmission owners. All large electrical corporations and transmission owners shall use the standardized data reporting templates for all submissions made on or after the date of their adoption. The commission shall update the standardized data reporting templates as necessary to reflect changes in the commission’s transmission project review process.
(B) The commission shall seek to collaborate with the Energy Commission and the Independent System Operator to develop a common reporting format that, to the extent feasible, results in standardized and comparable data across the three entities, allows a large electrical corporation or transmission owner to satisfy its reporting obligations through a single submission, and improves public and stakeholder access to transmission and interconnection project data.
(C) The standardized data reporting templates shall, at a minimum, include information regarding all of the following for each transmission and interconnection project subject to subdivision (a):
(i) The original and current permitting and construction timelines for the project, including anticipated dates for completion of key interim steps, including land acquisition, relevant permits, engineering design, environmental studies, and, if applicable, initiation of the prefiling consultation required under General Order 131-E.
(ii) Any delay, or risk of delay, and the projected duration in the delay. The templates shall specify methods for notifying the transmission development monitor of potential material impacts on project timing.
(iii) A written explanation of the cause of each delay, including whether completion of any network upgrade or other prerequisite obligation of the large electrical corporation or transmission owner affected the timing of any milestone attributed to a generator interconnection customer, transmission developer, or other third party.
(iv) The status of preconstruction dependencies, including scoping, land acquisition, permitting, engineering, design, and equipment procurement for the project.
(v) The level of staff and capital resources allocated to the project.
(vi) Any third-party contracting necessary to complete the project.
(vii) The large electrical corporation’s or transmission owner’s criteria or methodology for sequencing and prioritizing the project relative to other transmission and interconnection projects, including how the large electrical corporation or transmission owner allocates limited engineering, procurement, and construction resources among competing projects.
(viii) Any decision or financial limitation by the large electrical corporation or transmission owner, or the developer, to defer, deprioritize, or resequence the project following approval in a generator interconnection agreement or a transmission plan approved by the Independent System Operator, and the basis for that decision.
(D) Nothing in clause (vii) or (viii) of subparagraph (C) requires public disclosure of information beyond what is required under Section 583 and the commission’s rules governing confidential treatment of information submitted to the commission.
(7) The monitoring and review conducted pursuant to this subdivision shall be designed to avoid unnecessary duplication with other commission oversight, reporting requirements, or ongoing proceedings.
(8) Before finalizing the annual report pursuant to paragraph (2) or providing notice of a material deficiency pursuant to paragraph (4), the transmission development monitor shall provide any affected large electrical corporation or transmission owner with a summary of any material deficiency finding and an opportunity to respond to, or seek clarification of, that finding within 15 days. The transmission development monitor shall include the large electrical corporation’s or transmission owner’s response, if any, in the annual report or notice submitted to the commission. The large electrical corporation’s or transmission owner’s exercise of the opportunity to respond under this paragraph shall not extend the 90-day period specified in subdivision (c).
(9) The commission may, by resolution and after notice and opportunity for public comment, modify the scope, objectives, or reporting requirements of the transmission development monitor’s review under this subdivision as necessary to address changes in the risks to the timely and cost-effective completion of transmission and interconnection projects.
(c) (1) Within 90 days of receiving an annual report or notice of a material deficiency from the transmission development monitor pursuant to subdivision (b), the commission shall issue a resolution directing the large electrical corporation or transmission owner to take remedial actions to address material deficiencies identified by the transmission development monitor that the transmission development monitor determines are within the large electrical corporation’s or transmission owner’s reasonable control. Remedial actions may include, but are not limited to, any of the following:
(A) Reallocating staff or capital resources to complete high-priority
upgrades. For purposes of this subparagraph, “high-priority upgrades” means any of the following:
(i) Transmission, distribution, or interconnection facilities affecting the interconnection or deliverability of at least 100 megawatts of generating or storage capacity.
(ii) Projects that are needed for system or local reliability.
(iii) Projects that are needed to meet state policy objectives.
(iv) Upgrades that have experienced significant cost overruns and delays that could impact ratepayers.
(B) Facilitating advanced procurement of equipment or equipment sharing with other electrical corporations, local publicly owned electric utilities, interconnection customers, or other entities to address delays caused by supply chain constraints.
(C) Enabling generators to procure equipment on behalf of the large electrical corporation or transmission owner, while ensuring the equipment meets necessary specifications for safety, performance, and reliability.
(D) Enabling self-build options by generators or transmission solutions developed by another electrical corporation.
For purposes of this subparagraph, “self-build options” includes, but is not limited to, the permitting, design, procurement, construction, or commissioning of transmission, distribution, or interconnection facilities by an entity other than the large electrical corporation or transmission owner.
(E) Expediting engineering, design, permitting, and other preconstruction work for high-priority upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator.
(2) Any equipment procurement, construction, or self-build option undertaken pursuant to this subdivision shall be subject to the large electrical corporation’s or transmission owner’s design, engineering, operational, safety, cybersecurity, and reliability standards, including applicable North American Electric Reliability Corporation requirements. The large electrical corporation or transmission owner shall retain final authority to approve all designs, equipment specifications, construction practices, and commissioning associated with the equipment procurement, construction, or self-build option, and shall complete any review within 30 days of submission by an entity other than the large electrical corporation or transmission owner.
(3) Any remedial action ordered, or enforcement action taken, by the commission pursuant to this section shall be consistent with, and shall not exceed, the commission’s jurisdiction and authority under federal law, including the Federal Power Act (16 U.S.C. Sec. 791a et seq.).
(d) For transmission or interconnection projects experiencing delays that the transmission development monitor determines are beyond the reasonable control of the large electrical corporation or transmission owner, the transmission development monitor may refer the project to the Governor’s Office of Business and Economic Development, including through the Tracking Energy Development Task Force, for interagency coordination and escalation.
(e) A large electrical corporation’s or transmission owner’s record of compliance with remedial actions ordered by the commission pursuant to this section shall be admissible evidence and considered by the commission in any decision approving a rate or cost of capital application filed pursuant to Section 451.
(f) Compliance with a remedial action ordered by the commission pursuant to subdivision (c) shall not create a presumption that any cost incurred in complying with that remedial action is reasonable or recoverable in rates under Section 451.
(g) For purposes of this section, all of the following definitions apply:
(1) “Large electrical corporation” has the same meaning as defined in Section 3280.
(2) “Material deficiency” means a deficiency that is reasonably likely to result in a significant delay in the completion of a network upgrade or interconnection facility, or that reflects a pattern of repeated noncompliance with subdivision (a).
(3) “Milestone” means a scheduled date or deliverable for which a generator interconnection customer, transmission developer, or other third party is responsible under an interconnection agreement, a transmission facilities agreement, or another applicable project development schedule.
(4) “Transmission owner” means an entity, other than a large electrical corporation, that owns, controls, or is assigned or obligated to construct transmission facilities subject to the jurisdiction of the Federal Energy Regulatory Commission and is assigned or obligated to construct a transmission or interconnection project that requires a certificate of public convenience and necessity pursuant to Section 1001 or a permit to construct pursuant to General Order 131-E.