BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 1536 - Blakeslee Hearing
Date: July 7, 2009 A
As Amended: June 23, 2009 FISCAL B
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DESCRIPTION
Current law requires the California Public Utilities Commission
(CPUC) to administer the Self-Generation Incentive Program
(SGIP) for fuel cells and wind distributed generation
technologies through 2012.
This bill adds energy storage systems with a capacity of up to
10 MW to the list of eligible technologies.
This bill caps program funding at $83 million per year.
BACKGROUND
SGIP History - During the 2000-01 energy crisis the CPUC was
directed to create a program of incentives for renewable and
super clean, gas-fired distributed generation resources to
reduce electricity demand. As a result, the CPUC established
the SGIP in March 2001 which has offered rebates for
installation of technologies such as photovoltaics, wind, fuel
cells, waste gas, and ultra-clean and low emission gas-fired
distributed generation (combined heat and power, CHP).
Legislation adopted in 2004 eliminated CHP from the program as
of January 1, 2008. In 2006 photovoltaic incentives were moved
out of the SGIP to the California Solar Initiative (CSI)
effective January 1, 2007. Beginning in 2008 fuel cell and wind
technologies have been eligible for incentives as well as energy
storage when associated with a fuel cell.
According to the CPUC, 270 MW of distributed generation was
online by the end of 2007 which includes photovoltaics that, as
of 1/1/07, are out of the SGIP and funded separately as part of
the California Solar Initiative.
Energy Storage Technologies - Storage provides a mechanism for
saving off-peak energy production and delivering the energy
during on-peak periods. Storage facilities can also provide a
number of benefits that help with the integration of renewable
resources.
One of the distinctive characteristics of the electric power
sector is that the amount of electricity that can be generated
is relatively fixed over short periods of time, although demand
for electricity fluctuates throughout the day. Developing
technology to store electrical energy so it can be available to
meet demand whenever needed would represent a major breakthrough
in electricity distribution. Helping to try and meet this goal,
electricity storage devices can manage the amount of power
required to supply customers at times when need is greatest,
which is during peak load. These devices can also help make
renewable energy, the power output of which cannot be controlled
by grid operators, smooth and dispatchable.
COMMENTS
1. Author's Intent & Amendments - The author's goal is to
permit the CPUC to fund stand-alone energy storage
technologies from the SGIP program. These technologies can
allow a customer to store electricity generated from a
renewable resource for use when needed or to pull
electricity from the grid at a non-peak, low rate periods
for use at peak thus smoothing the electric load curve.
To ensure that incentives for energy storage are limited to
applications on the customer's side of the meter the author
proposes the following amendments . This analysis reflects
these amendments.
a) Page 2, line 5, after "2012," add "self
generation incentive program";
b) Page 2, line 6, strike "resources incentive
program";
c) Page 4, line 5, after "systems" strike the
remainder of the sentence and strike lines 6 through
19;
d) Page 4, line 21, strike distributed energy and
insert "self-generation";
e) Page 5, line 8, strike "distributed energy"
and on line 9, strike "resources" and insert
"self-generation"; and
f) Page 5, line 26, strike "distributed energy
resources" and insert "self-generation".
1. Ratepayer Impact - This bill does not increase funding
for the SGIP (currently $83 million annually) which is
derived from a surcharge on all ratepayers except
residential ratepayers who limit usage to tiers 1 and 2.
The CPUC currently has the broad authority to establish the
surcharge; this bill would cap total program costs at the
current level of $83 million annually.
2. Prior Committee Action - This committee adopted SB 412
(Kehoe) in April which eliminated the enumeration of
specific technologies. The policy approved by the
committee set broad energy and environmental goals but
placed the selection of individual technologies in a forum,
the CPUC, where a thorough analysis can be done for
technical viability, commercial readiness, cost and
environmental impacts, and overall value for distributed
generation incentives. The broad authority in SB 412 would
give the CPUC the authority to also fund energy storage
technologies as proposed by this bill.
This bill directly conflicts with SB 412 (Kehoe). The
authors have spoken and have committed to amending the
bills as necessary in August to prevent chaptering
problems.
ASSEMBLY VOTES
Assembly Floor (79-0)*
Assembly Appropriations Committee (15-0)*
Assembly Natural Resources Committee
(6-1)*
Assembly Utilities and Commerce Committee
(15-0)*
*Votes on prior version of the bill.
POSITIONS
Sponsor:
Author
Support:
California Energy Storage Alliance
California Public Utilities Commission (if amended)
Southern California Edison (if amended)
Oppose:
None on file
Kellie Smith
AB 1536 Analysis
Hearing Date: July 7, 2009