BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2713


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2713 (Chiu) - As Amended April 27, 2016


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          |Policy       |Local Government               |Vote:|9 - 0        |
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          |             |Utilities and Commerce         |     |14 - 0       |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:  This bill requires cities and counties to accept  
          electronic submissions of permit applications for advanced  
          energy storage installations, and requires the Governor's Office  
          of Planning and Research (OPR) to create a California Energy  
          Storage Permitting Guidebook.  Specifically, this bill:  









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          1)Requires, on or before September 30, 2017, every city, county,  
            or city and county with a population of 200,000 or more  
            residents, and on or before January 31, 2018, every city,  
            county, or city and county with a population of less than  
            200,000 residents, to make all documentation and forms  
            associated with the permitting of advanced energy storage  
            available on a publicly accessible website, if the city,  
            county, or city and county has an website.


          2)Requires every city, county, or city and county to allow for  
            electronic submission of a permit application and associated  
            documentation, and to authorize the electronic signature on  
            all forms, applications, and other documentation in lieu of a  
            wet signature by an applicant. 


          3)Prohibits any fee charged for the permitting or inspection of  
            an advanced energy storage installation to be calculated based  
            on the value of the installation or any other factor not  
            directly associated with the cost to issue the permit and  
            inspect the installation.


          4)Requires, on or before January 1, 2019, OPR, in consultation  
            with local building officials, the State Fire Marshal, the  
            storage industry, labor representative from the utility and  
            construction industries, licensed electrical contractors,  
            electrical corporations, publically owned utilities, the  
            California Public Utilities Commission (CPUC), and other  
            stakeholders, and through review of any existing streamlined  
            permitting practices used by cities, counties, or city and  
            counties, to create a California Energy Storage Permitting  
            Guidebook (Guidebook) modeled substantially on the California  
            Solar Permitting Guidebook.


          5)Prohibits OPR, in developing the Guidebook, from including  








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            provisions that are in conflict with or inconsistent with  
            provisions of the California Building standards Code, the  
            California Electrical Code, or any other model code adopted by  
            the California Building Standards Commission pursuant to the  
            California Building Standards Law.


          FISCAL EFFECT:


          1)Annual costs of at least $110,000 to OPR (GF) for two years to  
            consult with experts and stakeholders and develop the required  
            guidelines and other information necessary to create a  
            guidebook. This includes approximately $45,000 for Senior  
            Counsel (1/3 PY) and $60,000 to $70,000 for a program analyst  
            (1 PY).


          2)Unknown, but likely significant costs to other state agencies  
            to consult with OPR regarding guideline development. This may  
            include the State Fire Marshal, CPUC, Building Standards  
            Commission, Department of General Services, and others.


          3)One-time costs of approximately $300,000 (GF) for OPR to  
            develop and print the Guidebook. Staff notes that past  
            guidebooks were paid for by outside groups. There is no such  
            arrangement in this case.


          4)Non-reimbursable costs to cities and counties to make  
            documentation and forms associated with the permitting of  
            advanced energy storage available on their websites, to allow  
            electronic submissions of the applications, and authorize  
            electronic signatures, likely fully offset by fees cities and  
            counties are authorized to charge for these activities.

          COMMENTS:









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          1)Purpose. According to the author, "Across cities and counties  
            in California, applications to install energy storage projects  
            are increasing but two critical elements are missing.  First,  
            the state lacks a 'handbook' for uniform best practices of  
            energy storage permitting.  Second, in some cities and  
            counties across the state it remains difficult to access and  
            submit the necessary documents and forms associated with the  
            permitting of energy storage systems.  The 'handbook' and  
            online resources will help further the deployment of energy  
            storage solutions while continuing to support the state's  
            renewable energy and greenhouse gas emissions goals." 



          2)Background. AB 2514 (Skinner), Chapter 469, Statutes of 2010,  
            required the CPUC to determine appropriate targets for load  
            serving entities to procure energy storage system and required  
            load serving entities to meet any targets adopted by the CPUC  
            by 2015 and 2020.   AB 2514 also required publicly owned  
            utilities to set their own targets for the procurement of  
            energy storage and meet those targets by 2016 and 2021. In  
            October 2013, the CPUC issued a decision that required  
            California's three investor owned utilities to procure an  
            aggregate of 1,324 Megawatts of energy storage by the end of  
            2020, with installation by the end of 2024. 



            Because the amount of electric generation is relatively fixed  
            over short periods of time, even though demand for electricity  
            fluctuates throughout the day, developing energy storage  
            technologies can help the state manage the electric grid  
            during peak demand periods.  Energy storage devices can help  
            make renewable energy, which are energy outputs that cannot be  
            controlled by grid operators, easier to dispatch.  The most  
            common form of energy storage devices are batteries. However,  
            there are no commercially available batteries that could  
            cost-effectively store the large amount of electricity that  








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            can be produced by large scale wind and solar facilities.   
            Utilities are continuing to engage in projects to determine  
            the viability of different energy storage projects.





          3)Energy Storage Permitting Guidebook. The California Solar  
            Permitting Guidebook was developed for local governments and  
            permitting agencies to facilitate installation of small solar  
            energy systems. The guidebook provides recommendations in  
            which local governments can reduce permit processing times and  
            increase their output while facilitating local economic  
            development.  This bill requires OPR, on or before January 1,  
            2019, to create a California Energy Storage Permitting  
            Guidebook modeled substantially on the California Solar  
            Permitting Guidebook. 



            Premature? Unlike past efforts by OPR to develop guidebooks,  
            where much guidance and best practices existed and on which  
            OPR had been working for several years prior to the specific  
            request, there is very little comparable existing information  
            on energy storage on which to draw.  Federal guidance has not  
            yet been released, there are few, if any local model  
            ordinances, OPR has no topic experts on staff, and outside  
            groups are not yet actively engaged. Much of the relevant  
            information that OPR gathered and compiled in the past, will  
            have to be developed in this case, at much greater expense  
            than in the past. The Committee may wish to consider whether  
            there is a more efficient approach. 





          4)Related Legislation.  AB 2868 (Gatto), pending hearing in this  








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            Committee, would require the PUC, in consultation with the  
            State Air Resources Board and the State Energy Resources  
            Conservation and Development Commission, to direct electrical  
            corporations to file applications for programs and investments  
            to accelerate widespread deployment of distributed energy  
            storage systems.



          5)Previous Legislation.  



             a)   AB 1236 (Chiu and Low), Chapter 598, Statutes of 2015,  
               required counties and cities, including charter cities, to  
               create an expedited permitting and inspection process for  
               electric vehicle charging stations.



             b)   AB 2188 (Muratsuchi), Chapter 521, Statutes of 2014,  
               required every city or county to adopt an ordinance that  
               creates an expedited permitting process for small,  
               residential rooftop solar energy systems, altered the  
               definition of what is a reasonable restriction on a solar  
               energy system, and made additional changes to the Solar  
               Rights Act of 1978.



             c)   AB 2514 (Skinner), Chapter 469, Statutes of 2010,  
               required the PUC to determine appropriate targets, if any,  
               for load serving entities to procure energy storage  
               systems, required load serving entities to meet any targets  
               adopted by the PUC by 2015 and 2020, and required  
               publicly-owned utilities to set their own targets for the  
               procurement of energy storage and meet those targets by  
               2016 and 2021.
          








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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081