BILL ANALYSIS �
AB 1258
Page 1
Date of Hearing: April 15, 2013
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1258 (Skinner) - As Amended: March 13, 2013
SUBJECT : Electricity: hydroelectric facilities.
SUMMARY : This bill would require the California Public
Utilities Commission (PUC), on or before March 1, 2014, to open
a new proceeding or expand the scope of an existing proceeding
to determine the potential use of existing hydroelectric
facilities and specified pumped storage facilities.
Specifically, this bill :
Requires the PUC, on or before March 1, 2014, to open a new
proceeding or expand the scope of an existing proceeding to
determine the potential use of existing hydroelectric facilities
and specified pumped storage facilities to provide energy
resources with deliverability characteristics that may include
dispatchable baseload, firm, and as-available capacity
additional operational flexibility that could facilitate the
integration of renewable resources.
EXISTING LAW
Existing law requires the PUC to open a new proceeding to
determine the appropriate targets, if any, for each load-serving
entity to procure viable and cost-effective energy storage
systems to be achieved by December 31, 2015, and December 31,
2020. (Public Utilities Code 2836)
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement . "Renewable energy resources can address
the "peaking" dilemma in an environmentally friendly way. The
current solution of using gas-fired peakers only adds to
carbon emissions. A better solution would be to use
hydroelectric facilities to pump water uphill when the supply
of renewable energy resources exceeds the demand, and then,
when the demand suddenly exceeds the supply, to release the
water downhill, thereby generating clean, emission-free energy
to meet demand.
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As a step toward the goal of using renewable energy to meet peak
energy demand, AB 1258 requires the PUC to determine whether
existing hydroelectric facilities can provide operational
flexibility to facilitate the use of renewable energy."
2)The PUC currently has an open proceeding to determine
appropriate targets, if any, for each load-serving entity to
procure viable and cost-effective energy storage systems. The
PUC's proceeding will consider a variety of possible policies
to encourage the cost-effective deployment of energy storage
systems, including refinement of existing procurement methods
to properly value energy storage systems.
3)Storage Research . Through the ratepayer-funded Electric
Program Investment Charge (EPIC), the PUC is considering
funding energy storage research through both the
Investor-owned utilities (IOUs) and California Energy
Commission (CEC). Up to $15 million possible for IOU projects
that could include storage. As much as $60 million of the CEC
project budget could be applied to energy storage research
projects.
4)Focus on Pumped Storage . This bill would add a new provision
into existing law which requires the PUC to investigate energy
storage. The new provisions in this bill would specify the PUC
is to determine if existing hydroelectric facilities can
provide operational flexibility that could facilitate the
integration of renewable resources. Existing law specifies
three pumped storage facilities (Helms, Balsam Meadow, and
Oroville). This bill would add a fourth: Castaic.
5)The PUC supports AB 1258 if amended. The PUC states that it
has limited modeling resources which would impede the PUC
ability to conduct the analysis called for in this bill.
Instead the PUC states that the CEC has the expertise to
conduct an assessment of the potential for hydroelectric and
pumped storage to provide operational flexibility and that, as
the state's primary energy policy and planning agency, the CEC
has the technical expertise and resources to study the
hydroelectric and pumped storage potential impacts on system
flexibility.
6)State Water Project (SWP) is for Water Delivery. Multiple
water agencies jointly opine that studying the potential for
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existing hydroelectric and pumped storage facilities to
facilitate renewable integration "will seriously impact the
primary mission of the SWP of ensuring reliable water
deliveries for the more than 25 million residents throughout
the state and more than 750,000 acres of agricultural lands."
AB 1258 includes studying facilities that are part of the SWP.
The water agencies also point out that currently, "the
hydroelectric generating plants at the named facilities can
produce most of their power during on-peak hours. When
combined with pumping most water during the off peak, the SWP
helps reduce stress on the power grid." They point out that
"The amount of precipitation the state receives each year
significantly affects how much water passes through the
powerhouses and is pumped throughout the state. That in turn
dictates how much flexibility the facilities have in
generating power."
7)Recommended Amendments . The author may wish to consider the
following amendments to codify the uncodified intent
provisions in the bill with the reference to "constraints
required to protect fish, wildlife, and public safety" because
those constraints are existing law in other statutes; to
direct the CEC instead of the PUC to perform the assessment of
hydroelectric and pumped storage facilities; and to sunset the
statute after completion of the assessment:
SECTION 1. Section 25325 of the Public Resources Code is added
to read:
(a)It is the intent of the Legislature that load serving
entities maximize the use of existing hydroelectric and pumped
storage facilities for energy storage and renewable energy
integration , subject to constraints required to protect fish,
wildlife, and public safety .
SEC. 2. Section 2836 of the Public Utilities Code is amended
to read:
2836. (a) (1) On or before March 1, 2012, the commission shall
open a proceeding to determine appropriate targets, if any,
for each load-serving entity to procure viable and
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cost-effective energy storage systems to be achieved by
December 31, 2015, and December 31, 2020. As part of this
proceeding, the commission may consider a variety of possible
policies to encourage the cost-effective deployment of energy
storage systems, including refinement of existing procurement
methods to properly value energy storage systems.
(2) The commission shall adopt the procurement targets, if
determined to be appropriate pursuant to paragraph (1), by
October 1, 2013.
(3) The commission shall reevaluate the determinations made
pursuant to this subdivision not less than once every three
years.
(4) Nothing in this section prohibits the commission's
evaluation and approval of any application for funding or
recovery of costs of any ongoing or new development, trialing,
and testing of energy storage projects or technologies outside
of the proceeding required by this chapter.
(b) (1) On or before March 1, 2012, the governing board of
each local publicly owned electric utility shall initiate a
process to determine appropriate targets, if any, for the
utility to procure viable and cost-effective energy storage
systems to be achieved by December 31, 2016, and December 31,
2020. As part of this proceeding, the governing board may
consider a variety of possible policies to encourage the
cost-effective deployment of energy storage systems, including
refinement of existing procurement methods to properly value
energy storage systems.
(2) The governing board shall adopt the procurement targets,
if determined to be appropriate pursuant to paragraph (1), by
October 1, 2014.
(3) The governing board shall reevaluate the determinations
made pursuant to this subdivision not less than once every
three years.
(c) (1) On or before March 1, 2014, the commission shall open
a new proceeding or expand the scope of an existing proceeding
to determine the potential use of existing hydroelectric
facilities and pumped storage facilities specified in
paragraph (2) to provide additional operational flexibility
that could facilitate the integration of renewable resources.
(2) The pumped storage facilities to which paragraph (1)
applies are the Helms pumped storage facility, the Balsam
Meadow pumped storage facility, the Oroville pumped storage
facility, the Castaic pumped storage facility, and the San
Luis pumped storage facility .
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(b)The commission , in consultation with the Public Utilities
Commission, the California Independent System Operator,
electrical corporations and publicly owned utilities, federal
power marketing authorities, the Bureau of Reclamation, and
the Department of Water Resources, shall perform a technical
analysis of the potential use for existing hydroelectric and
pumped storage facilities to provide additional operational
flexibility that could facilitate the integration of renewable
resources for the state's electricity grid. The commission
shall provide its technical analysis by November 1, 2014
pursuant to Section 25302 (d).
(c)The analysis shall include scenarios, based on available
operation and modeling data, on means, if any, to improve and
optimize the operation of hydroelectric and pumped storage
facilities in a manner that meets California's environmental
and energy goals in a manner that could reduce costs to
consumers and impacts to the environment.
(d)The pumped storage facilities to which paragraph (b) and (c)
applies are the Helms pumped storage facility, the Balsam
Meadow pumped storage facility, the Oroville pumped storage
facility, the Castaic pumped storage facility, and the San
Luis pumped storage facility.
(e)This section shall remain in effect only until January 1,
2017, and as of that date is repealed.
1)Related Legislation.
AB 2514 (Skinner, Chapter 469, Statutes of 2010)
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Utilities Commission (CPUC) (if amended)
Clean Power Campaign (sponsor)
Opposition
Alameda County Water District
Antelope Valley East Kern Water Agency
Association of California Water Agencies (ACWA)
Castaic Lake Water Agency
Central Coast Water Authority
Coachella Valley Water District
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Crestline-Lake Arrowhead Water Agency
Desert Water Agency
Dudley Ridge Water District
Kern County Water Agency
Metropolitan Water District of Southern California
Mojave Water Agency
Palmdale Water District
San Bernardino Valley Municipal Water District
San Gorgonio Pass Water Agency
Solano County Water Agency
State Water Contractors, Inc.
Valley Ag Water Coalition (VAWC)
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083