Official Summary Text
SB 1295, as amended, Stern.
Energy
Distributed energy
storage systems: procurement.
Existing law requires the Public Utilities Commission
(PUC)
to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the
commission
PUC
to direct the state’s 3 largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.
This bill would require the
commission,
PUC,
in addition to the requirements described above, on or before January 1, 2030, to consider procurement strategies
for the installation of a statewide total of up to 40,000 megawatts of energy storage systems.
to support the installation of distributed energy storage systems, as provided. The bill would require the State Energy Resources Conservation and Development Commission, in consultation with the PUC and the Independent System Operator, on or before July 1, 2028, and biennially thereafter, to identify and evaluate constrained distribution areas, as defined, and local capacity areas, as defined, for those purposes, as provided.
As part of the procurement strategies considered by the
commission,
PUC,
the bill would require the
commission to consider appropriate targets, if any, for
PUC to require each
load-serving
entities to procure viable and cost-effective energy storage systems, to be achieved on or before December 31, 2040.
entity to demonstrate that identified localized reliability vulnerability areas will be addressed within a reasonable planning horizon and using the least-cost portfolio of resources, including distributed energy storage systems and other nonwire alternatives, as specified.
If the
commission
PUC
imposes an energy storage system procurement target on load-serving entities, the bill would authorize each load-serving entity to meet up to 50% of its procurement target through energy storage systems
that it owns, that are interconnected at the transmission or distribution level, or that are located on the customer side of the meter, as specified. The bill would require the
commission
PUC
to reconsider procurement strategies and appropriate targets not less than once every 3 years.
The bill would authorize the PUC to approve, or modify and approve, electrical corporation programs to deploy, and investments in, distributed energy storage systems that include appropriate energy storage management systems and reasonable mechanisms for cost recovery. The bill would require the PUC, on or before January 1, 2028, to amend its tariffs that govern the deployment of energy storage systems, as provided. The bill would require the PUC to authorize an electrical corporation to earn a return on investments in and operation of distributed energy storage systems and other nonwire alternatives deployed to address localized reliability vulnerability areas. The bill would require the commission to establish performance-based mechanisms that allow an electrical corporation to earn incentives
for achieving measurable outcomes, including, but not limited to, integration of cost-effective distributed energy resources, as provided.
Existing law requires the PUC to adopt a process for each load-serving entity to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity take specified actions, as specified.
This bill would require that the integrated resource plan of each load-serving entity include energy storage systems, as provided.
Under existing law, a violation of
the Public Utilities Act
or of
any order, decision, rule, direction, demand, or requirement of the
commission
PUC
is a crime.
Because
certain provisions of this bill would be part of the act, and
a violation of a
commission
PUC
action implementing the bill’s requirements would be a crime, 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 a specified reason.