CA AB3251

Requires the Public Utilities Commission to establish rules by July 1, 2021 allowing demand response programs to meet resource adequacy requirements regardless of whether they are integrated into the wholesale market operated by the Independent System Operator.

Mandates adoption of a baseline methodology that treats charging of energy storage systems as load in demand response program calculations.

Allows customer-sited distributed renewable energy resources and energy storage systems participating in demand response programs to deliver electricity to the grid to provide resource adequacy.

Requires the Public Utilities Commission, in consultation with the Independent System Operator and California Energy Commission, to establish a capacity valuation methodology for customer-sited energy storage and hybrid resources by July 1, 2021 for the 2022 resource adequacy year.

Defines "hybrid resource" as an energy storage system paired with a colocated eligible renewable energy resource where the storage system obtains charging energy from that renewable resource.