BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2868


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          (Without Reference to File)





          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2868 (Gatto)


          As Amended  August 31, 2016


          Majority vote


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          |ASSEMBLY:  |51-27 |(June 1, 2016) |SENATE: |24-12 |(August 31,      |
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          Original Committee Reference:  U. & C.


          SUMMARY:  Requires investor-owned utilities (IOUs) to file  
          applications with the California Public Utilities Commission  
          (CPUC) for programs and investments to accelerate the widespread  
          deployment of distributed energy storage systems.


          The Senate amendments:


          1)Authorize the CPUC to approve electric utility proposals and  
            investments in distributed energy storage.
          2)Specify total Megawatt (MW) limit at 500 MW, divided equally  








                                                                    AB 2868


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            among the three largest electric utilities.


          3)Prioritize programs to assist public and low income customers.


          4)Limit the total MW that can be installed on the  
            customer-side-of the meter to no more than 25% of the total  
            MW.


          5)Specify that programs and investments by utilities in  
            distributed energy storage are not to unreasonably limit or  
            impair the ability of non-utility enterprises to market and  
            deploy energy storage systems.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:


          1)One-time costs of approximately $500,000 (Utilities  
            Reimbursement Account) to the CPUC for a consulting budget.


          2)Approximately $419,000 (Utilities Reimbursement Account)  
            annually to the CPUC for staffing costs.


          3)Minor costs to the California Air Resources Board for  
            consultation.


          COMMENTS:  


          1)Background:  Existing state programs seek to foster  
            development and deployment of energy storage systems.  AB 2514  
            (Skinner), Chapter 469, Statutes of 2010, statute requires the  
            CPUC to determine appropriate targets, if any, for Load  
            Serving Entities to procure energy storage systems by 2015 and  
            2020, and directed publicly owned utilities to set their own  








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            comparable energy storage system procurement targets.  The  
            CPUC reports the IOUs have each progressed in meeting their  
            energy storage procurement targets.  None has yet met its  
            final procurement goal in any category, other than Southern  
            California Edison, which has already exceeded the procurement  
            goal for customer-side storage.  
            The state has also provided financial incentives to energy  
            storage systems.  Over the last several years, the CPUC  
            reports that the Self-Generation Incentive Program (SGIP),  
            which the CPUC administers, has awarded $42 million to nearly  
            1,200 energy storage projects.  The CPUC is currently  
            considering revisions to SGIP program eligibility.  A CPUC  
            staff proposal recommends reserving at least 75% of future  
            program awards for energy storage systems.


          Analysis Prepared by:                                             
                          Sue Kateley / U. & C. / (916) 319-2083  FN:  
          0005041