BILL ANALYSIS Ó
AB 2868
Page 1
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
2868 (Gatto)
As Amended August 31, 2016
Majority vote
--------------------------------------------------------------------
|ASSEMBLY: |51-27 |(June 1, 2016) |SENATE: |24-12 |(August 31, |
| | | | | |2016) |
| | | | | | |
| | | | | | |
--------------------------------------------------------------------
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
Page 2
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
AB 2868
Page 3
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