Amended in Senate August 2, 2016

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.


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 procurement targets 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 thosebegin delete requirements, without limit,end deletebegin insert increased targetsend insert 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


The Legislature finds and declares all of the

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 the long-term procurement planning process at
11the Public Utilities Commission, the ISO has identified a need for
12fast-ramping and flexible resources to balance the electrical grid
13and mitigate the effects of over-generation from renewable energy

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.

P3    1(d) Pumped hydroelectric storage, in particular, when
2constructed in a sufficiently large scale, possesses the
3characteristics to meet our electrical grid’s need for rapid ramping
4capability and the capacity to utilize over-generation from
5renewable energy resources.

6(e) Even with the recognized need identified by the ISO, there
7remains a lack of incentive for the state’s electrical utilities to
8procure large pumped hydroelectric energy storage because that
9procurement does not meet any current utility mandate.


SEC. 2.  

Section 2836.8 is added to the Public Utilities Code,
11to read:



(a) Beginning January 1, 2017, if the commission
13increases the targets for a load-serving entity to procure viable and
14cost-effective energy storage systems, pumped hydroelectric
15storage facilities of any size that become operational on or after
16January 1, 2017, shall be eligiblebegin delete without limitend delete to the extent that
17those facilities meet otherwise applicable requirements.

18(b) Subdivision (a) is declaratory of existing law and does not
19limit the commission’s discretion in developing or adopting targets
20for a load-serving entity to procure viable and cost-effective energy
21storage systems.