Bill Text: CA SB1347 | 2017-2018 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Energy storage systems: procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-08-16 - August 16 hearing: Held in committee and under submission. [SB1347 Detail]
Download: California-2017-SB1347-Amended.html
SEC. 2. Section 2837.5 is added to the Public Utilities Code , to read: 2837.5.
Bill Title: Energy storage systems: procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-08-16 - August 16 hearing: Held in committee and under submission. [SB1347 Detail]
Download: California-2017-SB1347-Amended.html
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Amended
IN
Senate
April 18, 2018 |
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Amended
IN
Senate
April 02, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Senate Bill | No. 1347 |
| Introduced by Senator Stern |
February 16, 2018 |
An act to add Section 2837.5 to the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 1347, as amended, Stern.
Energy storage systems: procurement.
Existing law requires the Public Utilities Commission to determine appropriate targets, if any, for each load-serving entity, including an electrical corporation, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to direct the state’s three largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.
This bill would, by an unspecified date, require the commission to determine whether additional procurement of energy storage systems by the state’s 3 largest electrical corporations is needed to maintain long-term system and local reliability. If the commission determines that additional
energy storage system procurement is needed, the bill would require the commission to direct those electrical corporations to procure additional energy storage systems. The bill would authorize each of those electrical corporations to own and operate up to 50% of its share of this procurement. The bill would provide that the net costs of procuring the energy storage systems shall be recovered from the electrical corporations’ retail end use customers on a fully nonbypassable basis.
This bill would, by January 1, 2020, require the commission, in addition to the requirements described above, to direct the state’s 3 largest electrical corporations to procure a total of 2,000 megawatts, in aggregate, of energy storage systems and would authorize the commission to direct those electrical corporations to procure additional energy storage system capacity, as specified. The
bill would authorize the electrical corporations to own and operate a certain percentage of these energy storage systems, measured by capacity, if certain conditions are met. The bill would provide that the net costs of authorized energy storage systems shall be recovered from the electrical corporations’ retail end use customers on a fully nonbypassable basis.
Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because a violation of an order or decision of the commission implementing the requirements of this bill would be a crime, the 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 a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(1) Properly designed and dispatched energy storage systems will help manage energy costs, help reduce overall system peak energy demands, help integrate increased levels of intermittent renewable energy on the grid, improve public health, and assist the state in achieving its greenhouse gas emissions reduction goals.
(2) Energy storage systems are uniquely situated to assist the state in reducing emissions of greenhouse gases associated with electrical generation by optimizing the use of intermittent renewable
generation.
(3) As the market for energy storage systems develops and transforms, electrical corporation ownership of a portion of energy storage systems will provide increased flexibility and options to utilize energy storage systems over their operating lives, reduce development and market operating risk, diversify the supply of energy storage, facilitate innovation, and guide market development of new energy storage products and services.
(4) Electrical corporations are uniquely situated to utilize energy storage systems for system reliability and renewable integration purposes.
(b) It is the policy of the state and the intent of the Legislature to facilitate and encourage increased utilization of energy storage, including
ownership of energy storage systems by electrical corporations, as means to achieve the state’s greenhouse gas emissions reduction goals, system reliability, efficient operation of the grid, and ratepayer benefits.
(a)(1)On or before ____, 2020, the commission shall determine whether additional procurement of energy storage system by the state’s three largest electrical corporations is needed to do both of the following:
(A)Maintain long-term system and local reliability.
(B)Accelerate the development of the significant amount of energy storage that is anticipated to be required to integrate intermittent renewable generation and reliably operate the electrical grid with less reliance on greenhouse gas-emitting sources of electricity.
(2)(A)If the commission determines that
additional procurement of energy storage systems is needed, the commission shall direct each of the state’s three largest electrical corporations to procure additional energy storage systems, as determined appropriate by the commission, to minimize the reliance on greenhouse gas-emitting sources of electricity.
(B)Each electrical corporation may own and operate up to 50 percent of the procurement required pursuant to subparagraph (A).
(b)The net costs of procuring energy storage systems pursuant to this section shall be recovered from all retail end-use customers of the electrical corporation on a fully nonbypassable basis in a manner determined by the commission.
SEC. 2.
Section 2837.5 is added to the Public Utilities Code, to read:2837.5.
(a) (1) (A) In addition to the requirements of Sections 2836 and 2838.2, on or before January 1, 2020, the commission shall direct the Pacific Gas and Electric Company and Southern California Edison Company each to procure 900 megawatts of energy storage systems and San Diego Gas and Electric Company to procure 200 megawatts of energy storage systems.(B) In addition to subparagraph (A), the commission may direct the Pacific Gas and Electric Company, Southern California Edison Company, and the San Diego Gas and Electric Company to procure additional energy storage system capacity to facilitate the state’s ability to meet its energy and climate goals.
(2) (A) Each electrical corporation may own and operate energy storage systems as follows:
(i) Up to 50 percent of the capacity allocated to the electrical corporation pursuant to subparagraph (A) of paragraph (1).
(ii) Up to 50 percent of the capacity allocated to the electrical corporation pursuant to subparagraph (B) of paragraph (1) for energy storage systems with an expected commercial operation date of December 31, 2030, or earlier.
(iii) Up to 35 percent of the capacity allocated to the electrical corporation pursuant to subparagraph (B) of paragraph (1) for energy storage systems with an expected commercial operation date of January 1, 2031, or later.
(B) Within 90
days of the issuance of an order pursuant to paragraph (1), if an electrical corporation elects to own and operate a percentage of the energy storage systems pursuant to subparagraph (A), the electrical corporation shall notify the commission of its election.
(b) The commission shall approve an electrical corporation’s ownership and operation of energy storage systems pursuant to paragraph (2) of subdivision (a) and shall grant cost recovery in rates for any investments in those energy storage systems if all of the following conditions are met:
(1) The electrical corporation competitively sources the energy storage equipment and installation services.
(2) The energy storage systems are centralized systems connected to the electrical grid in front of the electrical corporation’s customers’ meters.
(3) (A) The electrical corporation has entered or will enter into contracts for third-party ownership and operation of energy storage systems under this section in an amount that, along with the amount of capacity electrical corporation will own and operate, would meet the procurement requirement directed by the commission pursuant to paragraph (1) of subdivision (a). The commission shall determine an appropriate commercial operation date of all third-party-owned energy storage systems.
(B) The electrical corporation is not required to have entered into all of the contracts for third-party ownership and operation at the time the electrical corporation’s ownership and operation of energy storage systems is approved by the commission. The commission shall ensure that the electrical corporation successfully contracts for the required amount of third-party ownership
and operation of energy storage systems.
(c) The commission shall expedite review and approval of contracts for third-party ownership and operation of energy storage systems pursuant to this section through the use of a tier 3 advice letter process.
(d) The net costs of energy storage systems approved pursuant to this section shall be recovered from all retail end use customers of the electrical corporation on a fully nonbypassable charge basis in a manner determined by the commission.
