Amended in Senate August 19, 2016

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 actbegin delete to add Section 2836.8 to the Public Utilities Code,end delete relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 33, as amended, Quirk. Electrical corporations: energy storagebegin delete systems.end deletebegin insert systems: long duration bulk energy storage resources.end insert

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 bybegin delete December 31, 2015, andend delete December 31, 2020.begin delete 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.end delete

begin delete

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 increased targets to the extent that those facilities meet otherwise applicable requirements.

end delete
begin insert

This bill would require the commission to evaluate and analyze the potential for all types of long duration bulk energy storage resources to help integrate renewable generation into the electrical grid, as specified.

end insert

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 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
14resources.

P3    1(c) The ISO has identified energy storage, with its unique ability
2to both utilize excess electricity generated by renewable energy
3resources and to quickly inject that electricity back onto the
4electrical grid to meet ramping and peak demand needs, as a part
5of the new strategy for efficiently operating the electrical grid in
6a manner that best protects the environment.

7(d) begin deletePumped end deletebegin insertLong duration bulk energy storage and pumped end insert
8hydroelectric storage, in particular, when constructed in a
9sufficiently large scale, possesses the characteristics to meet our
10electrical grid’s need for rapid ramping capability and the capacity
11to utilize over-generation from renewable energy resources.

begin delete

12(e) Even with the recognized need identified by the ISO, there
13remains a lack of incentive for the state’s electrical utilities to
14procure large pumped hydroelectric energy storage because that
15procurement does not meet any current utility mandate.

end delete
begin delete
16

SEC. 2.  

Section 2836.8 is added to the Public Utilities Code,
17to read:

18

2836.8.  

(a) Beginning January 1, 2017, if the commission
19increases the targets for a load-serving entity to procure viable and
20cost-effective energy storage systems, pumped hydroelectric
21storage facilities of any size that become operational on or after
22January 1, 2017, shall be eligible to the extent that those facilities
23meet otherwise applicable requirements.

24(b) Subdivision (a) is declaratory of existing law and does not
25limit the commission’s discretion in developing or adopting targets
26for a load-serving entity to procure viable and cost-effective energy
27storage systems.

end delete
28begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The commission, in coordination with the Energy
29Commission, shall, as part of a new or existing proceeding,
30evaluate and analyze the potential for all types of long duration
31bulk energy storage resources to help integrate renewable
32generation into the electrical grid. As part of the evaluation, the
33commission shall assess the potential costs and benefits of all types
34of long duration bulk energy storage resources, including impacts
35to the transmission and distribution systems of location-specific
36long duration bulk energy storage resources.

end insert


O

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