BILL NUMBER: AB 44 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Blakeslee
DECEMBER 1, 2008
An act to add Section 454.6 to, and to add Chapter 7.7 (commencing
with Section 2835) to Part 2 of Division 1 of, the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 44, as introduced, Blakeslee. Energy storage facilities.
(1) Under existing law, the Public Utilities Commission is vested
with regulatory authority over public utilities, including electrical
corporations, and authorizes the commission to fix the rates and
charges for every public utility. Existing law authorizes the
commission to approve an increase of one-half of 1 percent to 1
percent in the rate of return otherwise allowed an electrical
corporation for investment by the corporation in generation
facilities using renewable resources.
This bill would authorize the commission, after a hearing, to
approve a similar increase in the rate of return for investment by a
corporation in energy storage facilities, as defined, that meet any
of specified requirements.
The bill would require the commission to develop a time-variant
tariff that establishes and maximizes incentives for the storage and
dispatch of energy by an eligible facility. The bill would require
the commission, in consultation with the Energy Commission, to
prepare and submit a report to the Governor and the Legislature, by
January 1, 2012, on the costs and benefits to ratepayers of energy
storage.
The bill would require an electrical corporation to develop a
standard contract or tariff providing for energy storage metering
that accounts separately for both the charging and discharging of
energy by an energy storage system, and to make this contract
available to eligible facilities upon request.
Under existing law, a violation of the Public Utilities Act or an
order or direction of the commission is a crime. Because the
provisions of this bill would require an order or other action of the
commission to implement, and a violation of that order or action
would be a crime, the bill would impose a state-mandated local
program by creating a new crime.
(2) 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 a specified reason.
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 454.6 is added to the Public Utilities Code, to
read:
454.6. The commission, after a hearing, may approve an increase
of one-half of 1 percent to 1 percent in the rate of return otherwise
allowed an electrical corporation for investment by the corporation
in energy storage facilities that meet any of the following
requirements:
(a) The facility stores energy generated from an eligible
renewable energy resource, as defined in Section 399.12, during
off-peak periods, as defined by the commission, and dispatches the
energy during on-peak periods, as defined by the commission.
(b) The facility is capable of responding to Independent System
Operator commands to either absorb or dispatch energy from the grid
and is capable of storing the energy for a minimum of two hours.
(c) The facility is capable of providing frequency and area
control error regulation required to integrate intermittent renewable
resources and maintain reliable operation of the electrical grid.
SEC. 2. Chapter 7.7 (commencing with Section 2835) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:
CHAPTER 7.7. ENERGY STORAGE SYSTEMS
2835. This chapter shall be known and may be cited as the
Integration of Renewable Energy Act.
2835.2. For the purposes of this chapter the following terms have
the following meanings:
(a) "Energy storage system" means any technology that is capable
of absorbing energy from a generation facility, storing it for a
period of time, and dispatching the energy onto the grid. Energy
storage systems include, but are not limited to, hydrogen storage,
pumped hydroelectricity storage, compressed air energy storage,
superconducting magnetic energy storage, flow batteries, cell
batteries, super capacitors, and fly wheels.
(b) "Eligible storage facility" or "eligible facility" means any
facility that employs an energy storage technology that meets at
least one of the following requirements:
(1) The facility stores energy generated from an eligible
renewable energy resource, as defined in Section 399.12, during
off-peak periods and dispatches the energy during on-peak periods.
(2) The facility is capable of responding to Independent System
Operator commands to either absorb or dispatch energy from the grid
and is capable of storing the energy for a minimum of two hours.
(3) The facility provides frequency and area control error
regulation required to integrate intermittent renewable resources and
maintain reliable operation of the electrical grid.
2835.4. The Legislature finds and declares all of the following:
(a) Energy storage systems can potentially enable higher
percentages of renewable energy to be included in California's power
supply portfolio by transforming intermittent generation, such as
wind and solar power, into dispatchable resources, allowing the state
to more fully utilize its abundant renewable resources.
(b) Energy storage systems can serve as load shifting technologies
by absorbing energy during off-peak periods, such as from wind
resources at night, and delivering the energy when demand is
greatest, thereby potentially reducing the need for, and associated
greenhouse gas emissions from, gas-fired peaker plants.
(c) Energy storage systems can greatly enhance the flexibility of
the operation of the power grid by quickly absorbing or dispatching
energy when needed.
(d) Energy storage systems that have an inverter can deliver
reactive power as well as real power. This is particularly useful
when the storage systems are located in load centers as they can help
support the voltage in a transmission-constrained area.
(e) It is the intent of the Legislature to facilitate the
expansion and deployment of energy storage systems, which are
critical to the timely and cost-effective achievement of the state's
ambitious renewables portfolio standard, greenhouse gas emissions
reduction targets, and regional air quality objectives while
maintaining reliable operation of the power grid.
2835.6. (a) The commission shall develop a time-variant tariff
that establishes and maximizes incentives for an eligible storage
facility to do both of the following:
(1) Store energy when demand is low or to ensure reliable
operation of the electrical grid.
(2) Dispatch stored energy during peak demand or to ensure
reliable operation of the electrical grid while intermittent
resources are ramping up or down.
(b) By January 1, 2012, the commission, in consultation with the
Energy Commission, shall prepare and submit a report to the Governor
and the Legislature on the costs and benefits to ratepayers of energy
storage.
2835.8. (a) Every electrical corporation shall develop a standard
contract or tariff providing for energy storage metering that
accounts separately for both the charging and discharging of energy
by an energy storage system, and shall make this contract available
to eligible facilities upon request.
(b) An electrical corporation shall make all necessary forms and
contracts for energy storage metering service available for download
from the Internet.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only 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.