Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC, in consultation with the Independent System Operator, to establish resource adequacy requirements for all electrical corporations, electric service providers, and community choice aggregators. Existing law requires that the resource adequacy program achieve specified objectives, including that it establish new or maintain existing demand response products and tariffs, as specified. This bill would require the PUC, in coordination with the State Energy Resources Conservation and Development Commission and the Independent System Operator, on or before June 30, 2027, to enhance existing market-integrated pathways for aggregated distributed capacity resources, as defined, to qualify as resource adequacy capacity, as specified. The bill would require the commission to establish conditions for the use of aggregated distributed capacity resources while ensuring net energy metering customers and net billing tariff customers do not receive duplicate compensation, as provided. The bill would require the PUC to allow electrical corporations, electric service providers, and community choice aggregators to include aggregated distributed capacity resources in resource adequacy filings and PUC-ordered procurement, as specified. The bill would require the PUC, on or before June 30, 2027, to develop recommendations for changes to the Independent System Operator's proxy demand resource and the distributed energy resource aggregation participation models to be consistent with the PUC's requirements for aggregated distributed capacity resources pursuant to these provisions, and to communicate the recommendations to the Independent System Operator for consideration in a new or existing initiative. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because the provisions of this bill would be part of the act and a violation of a PUC action implementing the bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.