Amended in Senate June 20, 2016

Amended in Senate June 6, 2016

Amended in Senate September 4, 2015

Amended in Senate August 18, 2015

Amended in Senate June 23, 2015

Amended in Assembly June 1, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 33


Introduced by Assembly Member Quirk

(Coauthors: Assembly Members Chávez, Jones, and Weber)

(Coauthors: Senators Anderson and Hueso)

December 1, 2014


An act to add Section 2836.8 to the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 33, as amended, Quirk. Electrical corporations: energy storage systems.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurementbegin delete targets,end deletebegin insert targetsend insert by October 1, 2013, and to reevaluate the determinations not less than once every three years. Pursuant to these requirements the commission adopted Decision 13-10-040 (October 17, 2013), Decision Adopting Energy Storage Procurement Framework and Design Program.

If, beginning January 1, 2017, the commission increases the targets for a load-serving entity to procure viable and cost-effective energy storage systems, this bill would require the commission to authorize pumped hydroelectric storage facilities of any size that become operational on or after January 1, 2017, to be eligible to meet those requirements, without limit, to the extent that those facilities meet otherwise applicable requirements.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) According to the California Independent System Operator
4(ISO), the state is experiencing unprecedented changes in the
5generation, delivery, and consumption of electricity. Along with
6these changes come challenges for operating the state’s electrical
7grid and resources in the most efficient manner, particularly in
8terms of timing of generation in relation to the demand for
9 electricity.

10(b) As part of thebegin delete long termend deletebegin insert long-termend insert procurement planning
11process at the Public Utilities Commission, the ISO has identified
12a need for fast-ramping and flexible resources to balance the
13electrical grid and mitigate the effects of over-generation from
14renewable energy resources.

15(c) The ISO has identified energy storage, with its unique ability
16to both utilize excess electricity generated by renewable energy
17resources and to quickly inject that electricity back onto the
18electrical grid to meet ramping and peak demand needs, as a part
19of the new strategy for efficiently operating the electrical grid in
20a manner that best protects the environment.

21(d) Pumped hydroelectric storage, in particular, when
22constructed in a sufficiently large scale, possesses the
P3    1characteristics to meet our electrical grid’s need for rapid ramping
2capability and the capacity to utilize over-generation from
3renewable energy resources.

4(e) Even with the recognized need identified by the ISO, there
5remains a lack of incentive for the state’s electrical utilities to
6procure large pumped hydroelectric energy storage because that
7procurement does not meet any current utility mandate.

8

SEC. 2.  

Section 2836.8 is added to the Public Utilities Code,
9to read:

10

2836.8.  

begin insert(a)end insertbegin insertend insert Beginning January 1, 2017, if the commission
11increases the targets for a load-serving entity to procure viable and
12cost-effective energy storage systems, pumped hydroelectric
13storage facilities of any size that become operational on or after
14January 1, 2017, shall be eligible without limit to the extent that
15those facilities meet otherwise applicable requirements.

begin insert

16
(b) Subdivision (a) is declaratory of existing law and does not
17limit the commission’s discretion in developing or adopting targets
18for a load-serving entity to procure viable and cost-effective energy
19storage systems.

end insert


O

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