BILL NUMBER: AB 33	AMENDED
	BILL TEXT

	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

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 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 those  requirements, without limit,
  increased targets  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:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) According to the California Independent System Operator (ISO),
the state is experiencing unprecedented changes in the generation,
delivery, and consumption of electricity. Along with these changes
come challenges for operating the state's electrical grid and
resources in the most efficient manner, particularly in terms of
timing of generation in relation to the demand for electricity.
   (b) As part of the long-term procurement planning process at the
Public Utilities Commission, the ISO has identified a need for
fast-ramping and flexible resources to balance the electrical grid
and mitigate the effects of over-generation from renewable energy
resources.
   (c) The ISO has identified energy storage, with its unique ability
to both utilize excess electricity generated by renewable energy
resources and to quickly inject that electricity back onto the
electrical grid to meet ramping and peak demand needs, as a part of
the new strategy for efficiently operating the electrical grid in a
manner that best protects the environment.
   (d) Pumped hydroelectric storage, in particular, when constructed
in a sufficiently large scale, possesses the characteristics to meet
our electrical grid's need for rapid ramping capability and the
capacity to utilize over-generation from renewable energy resources.
   (e) Even with the recognized need identified by the ISO, there
remains a lack of incentive for the state's electrical utilities to
procure large pumped hydroelectric energy storage because that
procurement does not meet any current utility mandate.
  SEC. 2.  Section 2836.8 is added to the Public Utilities Code, to
read:
   2836.8.  (a) Beginning January 1, 2017, if the commission
increases the targets for a load-serving entity to procure viable and
cost-effective energy storage systems, pumped hydroelectric storage
facilities of any size that become operational on or after January 1,
2017, shall be eligible  without limit  to the
extent that those facilities meet otherwise applicable requirements.
   (b) Subdivision (a) is declaratory of existing law and does not
limit the commission's discretion in developing or adopting targets
for a load-serving entity to procure viable and cost-effective energy
storage systems.