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 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 incentivesbegin delete toend deletebegin insert forend insert customers to install grid-connected energy storage systems on the customer side of the electrical meter. The bill would require the commission to determine appropriate 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, orbegin delete requirementsend deletebegin insert
requirementend insert ofbegin delete aend deletebegin insert theend insert commission is a crime, this bill would impose a state-mandated local program.begin insert The bill would require the governing board of each community choice aggregator, by July 1, 2018, to determine appropriate targets, if any, for the community choice aggregator to procure viable and cost-effective energy storage systems to be achieved by December 31, 2030.end insert 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
requirebegin delete theend deletebegin insert
each of thoseend insert governing boards, by July 1, 2018,begin insert
or during its next open integrated resource plan process,end insert to determine appropriate 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 governingbegin delete boardend deletebegin insert boardsend insert ofbegin delete aend delete local publicly owned electricbegin delete utility,end deletebegin insert utilities and community choice aggregators,end insert 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:
begin insert(a)end insertbegin insert end insertThe commission shall require load-serving entities,
4in developing and updating their integrated resource plans pursuant
5to Section 454.52, to consider the benefits of procuring energy
6storage systems, as defined in Section 2835.begin delete In approving an
7integrated resource plan, the commission shall require that, to the
8extent energy storage systems can meet resource needs as well as
9or better than fossil-fuel-based generation at reasonably equivalent
10or lower costs, the plans provide for the procurement of energy
11storage systems before fossil-fuel-based generation.end delete
12
(b) Except as provided in subdivision (c), the commission, in
13approving an integrated resource plan for a load-serving entity
14shall require that, to the extent energy storage systems can meet
15resource needs as well as or better than fossil-fuel-based
16generation at reasonably equivalent or lower cost, the plan provide
17for the procurement of energy storage systems before
18fossil-fuel-based generation.
19
(c) In certifying an integrated resource plan for a community
20choice aggregator, the commission shall act in accordance with
21paragraph (3) of subdivision (b) of Section 454.52 and paragraph
22(5) of subdivision (a) of Section 366.2.
Section 455.6 is added to the Public Utilities Code, to
24read:
The commission shall, in a new or existing proceeding,
26require each electrical corporation, by October 1, 2017, to propose
27new tariffs or programs to provide incentives to customers of the
28electrical corporation for installing energy storage systems on the
29customer side of an electric meter that is connected to the electrical
30grid.
Section 2836.1 is added to the Public Utilities Code,
32to read:
(a) (1) begin deleteOn end deletebegin insertExcept as provided in subdivision (b), on end insert
34or before January 1, 2018, the commission shall determine
35appropriate targets, if any, for each load-serving entity to procure
36viable and cost-effective energy storage systems to be achieved
37by December 31, 2030. Energy storage systems procured pursuant
38to the targets shall be limited to those that reduce the need for
P4 1fossil-fuel-based generation,
provide benefits to the electrical grid,
2or support the integration of eligible renewable energy resources
3procured pursuant to the California Renewables Portfolio Standard
4Program (Article 16 (commencing with Section 399.11) of Chapter
52.3 of Part 1).
6(2) This subdivision does not prohibit the commission’s
7evaluation and approval of any application for funding or recovery
8for costs of any ongoing or new development, trial, or testing of
9energy storage projects or technologies outside the targets required
10by this chapter.
11
(b) On or before July 1, 2018, the governing board of each
12community choice aggregator shall determine appropriate targets,
13if any, for the community choice aggregator to procure viable and
14
cost-effective energy storage systems to be achieved by December
1531, 2030. The governing board may consider a variety of policies
16to encourage cost-effective deployment of energy storage systems
17to reach the targets, including refinement of existing procurement
18methods to properly value energy storage systems.
19(b)
end delete
20begin insert(c)end insert On or before July 1, 2018,begin insert or during its next open integrated
21resource plan process,end insert the governing board of each local publicly
22owned electric utility shall determine appropriate targets, if any,
23for
the utility to procure viable and cost-effective energy storage
24systems to be achieved by December 31, 2030. The governing
25board may consider a variety of policies to encourage the
26cost-effective deployment of energy storage systems to reach the
27targets, including refinement of existing procurement methods to
28properly value energy storage systems.
Section 9620.5 is added to the Public Utilities Code,
30to read:
The governing board of each local publicly owned
32electric utility, in planning for future procurement of resources,
33shall consider the benefits of procuring energy storage systems,
34as defined in Section 2835, and, to the extent energy storage
35systems can meet resource needs as well as or better than
36fossil-fuel-based generation at reasonably equivalent or lower
37costs, procure energy storage systems before fossil-fuel-based
38generation.
No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution because
P5 1a local agency or school district has the authority to levy service
2charges, fees, or assessments sufficient to pay for the program or
3level of service mandated by this act or because costs that may be
4incurred by a local agency or school district will be incurred
5because this act creates a new crime or infraction, eliminates a
6crime or infraction, or changes the penalty for a crime or infraction,
7within the meaning of Section 17556 of the Government Code, or
8changes the definition of a crime within the meaning of Section 6
9of Article XIII B of the California Constitution.
O
95