BILL ANALYSIS �
AB 1258
Page 1
Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1258 (Skinner) - As Amended: April 23, 2013
Policy Committee: Utilities and
Commerce Vote: 15-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Energy Commission (CEC), in
consultation with other state and federal agencies, electrical
corporations and publicly-owned utilities, to perform a
technical analysis of the potential uses of existing
hydro-electric and pumped storage facilities to provide
additional operational flexibility to integrate eligible
renewable energy sources into the grid. Specifically, this
bill:
1)Requires CEC to consult with the following when preparing the
technical analysis:
a) The Public Utilities Commission (PUC).
b) The Department of Water Resources (DWR).
c) The Independent System Operator (ISO).
d) Electrical corporations.
e) Publicly-owned utilities.
f) Federal power marketing authorities.
g) The Bureau of Reclamation.
1)Requires the technical analysis to include scenarios that meet
California's environmental and energy goals in a manner that
reduces impacts to the environment and costs to customers at
five specified pumped storage facilities.
2)Requires the CEC to complete its initial technical analysis by
November 1, 2014.
3)Allows the CEC to include this technical analysis in the
Integrated Energy Policy Report (IEPR) prepared by the
commission every two years.
AB 1258
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4)Sunsets January 1, 2017
FISCAL EFFECT
1)Significant costs, potentially up to $1 million, for CEC to
perform the technical study.
2)Minor, costs to DWR, PUC and ISO.
COMMENTS
1)Rationale. The use of gas-fired generators to meet peak
energy demand adds to carbon emissions and other air
pollutants. A better solution may be to use hydroelectric
facilities to pump water uphill when the supply of renewable
energy exceeds the demand, then release the water downhill
when the demand exceeds the supply, thereby generating clean
emission-free energy to meet peak demand.
The author intends the technical analysis to provide the
information necessary for the PUC to determine whether
existing hydroelectric facilities can provide the necessary
operational flexibility.
2) Background. As required by law, the PUC opened a new
proceeding to determine the appropriate targets, if any, for
each load-serving entity to procure viable and cost-saving
energy storage systems by 2015 and 2020.
Through the rate-payer funded Electric Program Investment
Charge (EPIC) the PUC is considering funding energy storage
research through both CEC and investor-owned utilities. The
PUC is currently required to investigate the potential for
energy storage at Helms, Balsam, Meadow and Oroville. This
bill also requires the CEC to perform the technical study on
Castaic.
3)Support. This bill is supported by the Public Utilities
Commission and the Clean Power Campaign.
4)Opposition. Numerous water agencies oppose this bill due to
the potential to impact the primary mission of the State Water
Project (SWP) to ensure reliable water deliveries residential
and agricultural purposes.
AB 1258
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5)Energy Commission. It is not clear the CEC has the staff
expertise to prepare a detailed technical analysis of
hydroelectric and pumped storage or the authority to compel
participation of the state's investor-owned utilities,
publicly-owned utilities and other relevant state and federal
agencies.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081