This bill mandates the Public Utilities Commission (PUC) to initiate a proceeding by September 1, 2024, to establish standards for the allocation of utility costs associated with upgrading distribution systems to increase hosting capacity for distributed generation facilities. The bill outlines specific criteria for the cost-sharing process among owners of distributed generation projects, aiming to reduce financial burdens and ensure fair allocation of costs. It also defines key terms such as "distributed generation project," "hosting capacity," and "trigger project," and emphasizes the need for utilities to manage upgrade costs effectively while limiting unrecovered costs that may be passed on to ratepayers.

Additionally, the bill establishes a new interconnection ombudsperson position within the PUC to assist applicants in navigating the interconnection process. This ombudsperson will track disputes, facilitate resolutions, and review utility policies to minimize conflicts. To fund this position, a surcharge of $35 will be assessed on each interconnection application submitted by distributed generation facility owners, with the collected funds deposited into a dedicated account managed by the PUC. The bill also allows for annual reviews of the surcharge to ensure adequate funding for the ombudsperson role.