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
the Pacific Gas and Electric Company and Southern California Edison Company each all load-serving entities to procure 900 their proportionate share of a statewide total of 2,000 megawatts of energy storage systems and San Diego Gas and Electric Company to procure 200 megawatts of energy storage
systems.
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
May 01, 2018 |
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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 January 1, 2020, require the commission, in addition to the requirements described above, to direct the state’s 3 largest electrical corporations
corporations, community choice aggregators, electric service providers, and certain electrical cooperatives (collectively, load-serving entities) to procure their proportionate share of a total of 2,000 megawatts, in aggregate, of energy storage systems and would authorize the commission to direct those electrical corporations the load-serving entities 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 authorize community choice aggregators, electric service providers, and certain electrical cooperatives to own and operate energy storage systems to meet their allocated shares. 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. require the commission to develop and make available to all load-serving entities a cost recovery mechanism that meets certain requirements.
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, and facilitate innovation, and innovation. The coordinated deployment of energy storage systems owned and operated by electrical corporations and those owned and operated by third parties can 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, storage as means to achieve the state’s greenhouse gas emissions reduction goals, system reliability, efficient operation of the grid, and ratepayer benefits.
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(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 all load-serving entities to procure additional energy storage system capacity to facilitate the state’s ability to meet its energy and climate goals.
(C) The commission shall allocate the 2,000 megawatts required pursuant to subparagraph (A) and any additional procurement authorized pursuant to subparagraph (B) to each load-serving entity based on its prorata share of customer
demand.
(2) (A) Each electrical corporation may own and operate energy storage systems as follows:
(i) Up to 50 percent of the capacity required pursuant to subparagraph (A) of paragraph (1) allocated to the electrical corporation pursuant to subparagraph (A)
(C) of paragraph (1).
(ii) Up to 50 percent of the capacity required by the commission pursuant to subparagraph (B) of paragraph (1) allocated to the electrical corporation pursuant to subparagraph (B) (C) 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 required by the commission pursuant to subparagraph (B) of
paragraph (1)
allocated to the electrical corporation pursuant to subparagraph (B) (C) 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.
(C) Community choice aggregators may own and operate energy storage
systems following guidelines determined by their local governing boards, consistent with paragraph (5) of subdivision (a) of Section 366.2.
(D) Electric service providers and electrical cooperatives may own and operate all or a portion of the energy storage system allocated to them pursuant to subparagraph (C) of paragraph (1).
(E) The commission shall order all load-serving entities to procure their prorata share of energy storage systems on the same timelines.
(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
the
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
cost recovery mechanism is in the best interest of the ratepayers.
(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.
(d) The commission shall develop and make available to all load-serving entities a cost recovery mechanism that meets all of the following requirements:
(1) It does not unduly shift costs between customers receiving generation services from electrical corporations and those receiving generation services from other load-serving entities.
(2) It can be equally applied to all load-serving entities.
(3) It is transparent.
(4) It is consistent with paragraph (5) of subdivision (a) of Section 366.2 and paragraph (5) of subdivision (a) of Section 380.
(e) For purposes of this section, “load-serving entity” does not include an electrical cooperative, as defined in Section 2776, if the electrical cooperative has an annual electrical demand of less than 700 gigawatthours, as determined on a three-year average, commencing with January 1, 2013.
