BILL NUMBER: SB 886 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 26, 2016
AMENDED IN SENATE APRIL 12, 2016
AMENDED IN SENATE MARCH 17, 2016
INTRODUCED BY Senator Pavley
JANUARY 20, 2016
An act to add Sections 454.53, 455.6, 2836.1, and 9620.5 to the
Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
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 the
full 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 to
adopt determine appropriate targets
targets, if any, 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, to
adopt determine appropriate targets
targets, if any, 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 1. Section 454.53 is added to the Public Utilities Code,
to read:
454.53. The commission shall require load-serving entities, in
developing and updating their integrated resource plans pursuant to
Section 454.52, to consider the full benefits of
procuring energy storage systems, as defined in Section 2835. In
approving an integrated resource plan, the commission shall require
that, to the extent energy storage systems can meet resource needs as
well as or better than fossil-fuel-based generation at reasonably
equivalent or lower costs, the plans provide for the procurement of
energy storage systems before fossil-fuel-based generation.
SEC. 2. Section 455.6 is added to the Public Utilities Code, to
read:
455.6. The commission shall, in a new or existing proceeding,
require each electrical corporation, by October 1, 2017, to propose
new tariffs or programs to provide incentives to customers of the
electrical corporation for installing energy storage systems on the
customer side of an electric meter that is connected to the
electrical grid.
SEC. 3. Section 2836.1 is added to the Public Utilities Code, to
read:
2836.1. (a) (1) On or before January 1, 2018, the commission
shall adopt determine appropriate
targets targets, if any, for each
load-serving entity to procure viable and cost-effective energy
storage systems to be achieved by December 31, 2030. Energy storage
systems procured pursuant to the targets shall be limited to those
that reduce the need for fossil-fuel-based generation, provide
benefits to the electrical grid, or support the integration of
eligible renewable energy resources procured pursuant to the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1).
(2) This subdivision does not prohibit the commission's evaluation
and approval of any application for funding or recovery for costs of
any ongoing or new development, trial, or testing of energy storage
projects or technologies outside the targets required by this
chapter.
(b) On or before July 1, 2018, the governing board of each local
publicly owned electric utility shall adopt
determine appropriate targets targets,
if any, for the utility to procure viable and cost-effective
energy storage systems to be achieved by December 31, 2030. The
governing board may consider a variety of policies to encourage the
cost-effective deployment of energy storage systems to reach the
targets, including refinement of existing procurement methods to
properly value energy storage systems.
SEC. 4. Section 9620.5 is added to the Public Utilities Code, to
read:
9620.5. The governing board of each local publicly owned electric
utility, in planning for future procurement of resources, shall
consider the benefits of procuring energy storage systems, as defined
in Section 2835, and, to the extent energy storage systems can meet
resource needs as well as or better than fossil-fuel-based generation
at reasonably equivalent or lower costs, procure energy storage
systems before fossil-fuel-based generation.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.