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AB-33 Electrical corporations: energy storage systems.(2015-2016)

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AB33:v92#DOCUMENT

Amended  IN  Senate  June 20, 2016
Amended  IN  Senate  June 06, 2016
Amended  IN  Senate  September 04, 2015
Amended  IN  Senate  August 18, 2015
Amended  IN  Senate  June 23, 2015
Amended  IN  Assembly  June 01, 2015
Amended  IN  Assembly  April 06, 2015

CALIFORNIA LEGISLATURE— 2015–2016 REGULAR SESSION

Assembly Bill No. 33


Introduced by Assembly Member Quirk
(Coauthors: Assembly Members Chávez, Jones, and Weber)
(Coauthors: Senators Anderson and Hueso)

December 01, 2014


An act to add Section 2836.8 to the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


AB 33, as amended, Quirk. Electrical corporations: energy storage systems.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires the commission to open a proceeding 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, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets, targets by October 1, 2013, and to reevaluate the determinations not less than once every three years. Pursuant to these requirements the commission adopted Decision 13-10-040 (October 17, 2013), Decision Adopting Energy Storage Procurement Framework and Design Program.
If, beginning January 1, 2017, the commission increases the targets for a load-serving entity to procure viable and cost-effective energy storage systems, this bill would require the commission to authorize pumped hydroelectric storage facilities of any size that become operational on or after January 1, 2017, to be eligible to meet those requirements, without limit, to the extent that those facilities meet otherwise applicable requirements.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) According to the California Independent System Operator (ISO), the state is experiencing unprecedented changes in the generation, delivery, and consumption of electricity. Along with these changes come challenges for operating the state’s electrical grid and resources in the most efficient manner, particularly in terms of timing of generation in relation to the demand for electricity.
(b) As part of the long term long-term procurement planning process at the Public Utilities Commission, the ISO has identified a need for fast-ramping and flexible resources to balance the electrical grid and mitigate the effects of over-generation from renewable energy resources.
(c) The ISO has identified energy storage, with its unique ability to both utilize excess electricity generated by renewable energy resources and to quickly inject that electricity back onto the electrical grid to meet ramping and peak demand needs, as a part of the new strategy for efficiently operating the electrical grid in a manner that best protects the environment.
(d) Pumped hydroelectric storage, in particular, when constructed in a sufficiently large scale, possesses the characteristics to meet our electrical grid’s need for rapid ramping capability and the capacity to utilize over-generation from renewable energy resources.
(e) Even with the recognized need identified by the ISO, there remains a lack of incentive for the state’s electrical utilities to procure large pumped hydroelectric energy storage because that procurement does not meet any current utility mandate.

SEC. 2.

 Section 2836.8 is added to the Public Utilities Code, to read:

2836.8.
 (a) Beginning January 1, 2017, if the commission increases the targets for a load-serving entity to procure viable and cost-effective energy storage systems, pumped hydroelectric storage facilities of any size that become operational on or after January 1, 2017, shall be eligible without limit to the extent that those facilities meet otherwise applicable requirements.
(b) Subdivision (a) is declaratory of existing law and does not limit the commission’s discretion in developing or adopting targets for a load-serving entity to procure viable and cost-effective energy storage systems.