CA AB740

Requires the California Energy Commission to adopt a virtual power plant deployment plan in the next biennial integrated energy policy report update after January 1, 2027, subject to available funding

Defines "virtual power plant" as coordinated aggregations of behind-the-meter distributed energy resources including electric vehicles/chargers, smart water heaters, thermostats, battery storage, and flexible commercial/industrial loads that can balance electricity demand and supply

Mandates each electrical corporation to annually report to the Energy Commission its contribution toward meeting state load-shift goals

Requires the Energy Commission to hold at least two public workshops and consult with the Public Utilities Commission, Independent System Operator, and disadvantaged community advisory groups when developing the plan

Plan must identify barriers and opportunities for virtual power plants to qualify for resource adequacy, assess cost-effectiveness compared to alternatives, and ensure recommendations do not increase costs for non-participating ratepayers