SB 886, as amended, Pavley. Electricity: energy storage systems.
Existing law requires the Public Utilities Commission to determine appropriate targets for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. Existing law requires the governing board of each local publicly owned electric utility to initiate a process to determine appropriate targets for the utility to procure viable cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. Existing law requires the commission to adopt a process for each load-serving entity to file an integrated resource plan and a schedule for periodic updates to the plan to meet certain objectives. Existing law requires each publicly owned electric utility to prudently plan for and procure resources, including energy storage systems adequate to meet the 2015 and 2020 targets, to provide reliable electric service to its customers.
This bill would require load-serving entities, in developing and updating their integrated resource plans, to consider thebegin delete fullend delete benefits of procuring energy storage systems and would require the commission, in approving the plans, to require the procurement of energy storage systems before fossil-fuel-based generation in specified circumstances. The bill would require electrical corporations, by October 1, 2017, to develop appropriate tariffs or programs to provide incentives to customers to install grid-connected energy storage systems on the customer side of the electrical meter. The bill would require the commission tobegin delete adoptend deletebegin insert determineend insert
appropriatebegin delete targetsend deletebegin insert targets, if any,end insert for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2030, as specified. Because a violation of an order, decision, rule, direction, demand, or requirements of a commission is a crime, this bill would impose a state-mandated local program. The bill would require the governing board of each local publicly owned electric utility, in planning for future procurement of resources, to consider the benefits of procuring energy storage systems and to procure energy storage systems before fossil-fuel-based generation in specified circumstances. The bill would require the governing boards, by July 1, 2018, tobegin delete adoptend deletebegin insert
determineend insert appropriatebegin delete targetsend deletebegin insert targets, if any,end insert for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2030. Because this bill would impose additional requirements on the governing board of a local publicly owned electric utility, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 454.53 is added to the Public Utilities
2Code, to read:
The commission shall require load-serving entities, in
4developing and updating their integrated resource plans pursuant
5to Section 454.52, to consider thebegin delete fullend delete benefits of procuring energy
6storage systems, as defined in Section 2835. In approving an
7integrated resource plan, the commission shall require that, to the
8extent energy storage systems can meet resource needs as well as
P3 1or better than fossil-fuel-based generation at reasonably equivalent
2or lower costs, the plans provide for the procurement of energy
3storage systems before fossil-fuel-based generation.
Section 455.6 is added to the Public Utilities Code, to
5read:
The commission shall, in a new or existing proceeding,
7require each electrical corporation, by October 1, 2017, to propose
8new tariffs or programs to provide incentives to customers of the
9electrical corporation for installing energy storage systems on the
10customer side of an electric meter that is connected to the electrical
11grid.
Section 2836.1 is added to the Public Utilities Code,
13to read:
(a) (1) On or before January 1, 2018, the commission
15shallbegin delete adoptend deletebegin insert determineend insert appropriatebegin delete targetsend deletebegin insert targets, if any,end insert for each
16load-serving entity to procure viable and cost-effective energy
17storage systems to be achieved by December 31, 2030. Energy
18storage systems procured pursuant to the targets shall be limited
19to those that reduce the need for fossil-fuel-based generation,
20
provide benefits to the electrical grid, or support the integration
21of eligible renewable energy resources procured pursuant to the
22California Renewables Portfolio Standard Program (Article 16
23(commencing with Section 399.11) of Chapter 2.3 of Part 1).
24(2) This subdivision does not prohibit the commission’s
25evaluation and approval of any application for funding or recovery
26for costs of any ongoing or new development, trial, or testing of
27energy storage projects or technologies outside the targets required
28by this chapter.
29(b) On or before July 1, 2018, the governing board of each local
30publicly owned electric utility shallbegin delete adoptend deletebegin insert
determineend insert appropriate
31begin delete targetsend deletebegin insert targets, if any,end insert for the utility to procure viable and
32cost-effective energy storage systems to be achieved by December
3331, 2030. The governing board may consider a variety of policies
34to encourage the cost-effective deployment of energy storage
35systems to reach the targets, including refinement of existing
36procurement methods to properly value energy storage systems.
Section 9620.5 is added to the Public Utilities Code,
38to read:
The governing board of each local publicly owned
40electric utility, in planning for future procurement of resources,
P4 1shall consider the benefits of procuring energy storage systems,
2as defined in Section 2835, and, to the extent energy storage
3systems can meet resource needs as well as or better than
4fossil-fuel-based generation at reasonably equivalent or lower
5costs, procure energy storage systems before fossil-fuel-based
6generation.
No reimbursement is required by this act pursuant to
8Section 6 of Article XIII B of the California Constitution because
9a local agency or school district has the authority to levy service
10charges, fees, or assessments sufficient to pay for the program or
11level of service mandated by this act or because costs that may be
12incurred by a local agency or school district will be incurred
13because this act creates a new crime or infraction, eliminates a
14crime or infraction, or changes the penalty for a crime or infraction,
15within the meaning of Section 17556 of the Government Code, or
16changes the definition of a crime within the meaning of Section 6
17of Article XIII B of the California Constitution.
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