BILL ANALYSIS Ó AB 2713 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2713 (Chiu) - As Amended April 27, 2016 ----------------------------------------------------------------- |Policy |Local Government |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Utilities and Commerce | |14 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 2713 Page 2 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 AB 2713 Page 3 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: AB 2713 Page 4 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 AB 2713 Page 5 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 AB 2713 Page 6 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. AB 2713 Page 7 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081