Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-1030 Energy storage systems.(2017-2018)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 03/31/2017 04:00 AM
AB1030:v98#DOCUMENT

Amended  IN  Assembly  March 30, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1030


Introduced by Assembly Member Ting

February 16, 2017


An act to add Section 2837.5 to the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


AB 1030, as amended, Ting. Energy storage systems.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing board. Existing law requires the PUC 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 PUC is required to adopt the procurement targets and to reevaluate all of these determinations not less than once every 3 years. Existing law excludes an electrical corporation that has 60,000 or fewer customer accounts within California from these requirements. Existing law requires each load-serving entity to submit a report to the commission demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the commission by January 1, 2016, and again on January 1, 2021. Existing law requires the governing board of each local publicly owned electric utility to initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2016, and December 31, 2020. If determined to be appropriate, the governing board is required to adopt the procurement targets, by October 1, 2014, and to reevaluate the determinations not less than once every 3 years. Existing law requires a local publicly owned electric utility to report to the State Energy Resources Conservation and Development Commission (Energy Commission) regarding the energy storage system procurement targets and policies adopted by the governing board, report any modifications made to those targets as a result of a reevaluation, and to submit reports demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the governing board.
Existing law requires the PUC, in consultation with the State Air Resources Board and the State Energy Resources Conservation and Development Energy Commission, 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, as defined. Existing law authorizes the PUC to approve, or modify and approve, programs and investments in distributed energy storage systems, as provided, and requires the PUC to prioritize those programs and investments that provide distributed energy storage systems to public sector and low-income customers. Existing law makes no comparable requirement for local publicly owned electric utilities.
This bill would require the PUC to establish a program to incentivize residential and commercial customers to adopt energy storage systems. establish 4 energy policy goals of the state with respect to energy storage and would require the PUC, on behalf of electrical corporations, and require the governing board, on behalf of a local publicly owned electric utility, to undertake specified actions with respect to customer- and load-sited energy storage systems in order to achieve those energy policy goals, including a rebate program dedicated to energy storage that carves out a portion of funding for low-income customers and disadvantaged communities. Because a violation of any order, decision, rule, direction, demand, or requirement of the PUC implementing these requirements would be a crime, this bill would impose a state-mandated local program. By placing requirements upon a local publicly owned electric utility, 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.

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 specified reasons.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The electrical system is evolving from a model dominated by centralized powerplants and long distance transmission of electricity toward a model focused on local energy sources located close to customer electrical demand.
(b) A decentralized electrical system can create greater energy independence and provide opportunities for increased resiliency of the supply of electricity.
(c) Locating generation near where the electricity is used reduces losses associated with the long-distance transmission of electricity.
(d) Empowering customers to take more active roles in the state’s electrical system leverages private capital, protects consumers from rising energy costs, and promotes customer understanding and engagement.
(e) Installation of energy storage systems on a mass scale will be essential to the integration of renewable energy resources sufficient to meet the state’s goals for reducing emissions of greenhouse gases.
(f) A competitive market for energy storage systems would create jobs, stimulate economic development, and benefit the economy statewide.
(g) California is a worldwide leader in the development of energy storage systems and advanced management of the electrical grid, but the market is so small that this leadership position is not firm.

SEC. 2.

 Section 2837.5 is added to the Public Utilities Code, to read:

2837.5.
 (a) The following are energy policy goals of the state:
(1) Make energy storage a mainstream technology that enables utility customers to help reduce variation in electricity consumption in local circuits of the electrical distribution system and the statewide electrical system.
(2) Create a marketplace for energy services that harnesses innovation stimulated by competition and that fairly compensates distributed energy resources for the electrical and other system attributes and grid services that those resources provide to the electrical system.
(3) Achieve market transformation for energy storage systems. Market transformation would enable advanced technology energy companies and associated entities to achieve the scale and experience necessary to offer solutions at prices that are cost effective for customers. The market transformation of energy storage systems can also help address time-varying energy needs of the electrical system.
(4) Use customer-sited energy storage as a primary strategy to meet the existing targets for reducing emissions of greenhouse gases established by the State Air Resources Board pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
(b) In order to achieve the energy policy goals of subdivision (a), the Public Utilities Commission and the governing board of a local publicly owned electric utility shall do all of the following:
(1) Approve optional tariffs that account for the electrical, capacity, and other grid services provided to the electrical system by customers with customer-sited energy storage systems and are intended to motivate customers to install load-sited energy storage systems.
(2) Ensure that demand response programs prioritize opportunities for participation by customers with load-sited energy storage systems.
(3) Ensure that tariff and market rules do not prevent full utilization of customer-sited energy storage systems to provide the services they are capable of performing.
(4) Ensure that rules governing the interconnection of customer-sited energy systems to utility distribution systems are streamlined, cost effective, and remain up to date for the evolving technological characteristics of customer-sited energy storage systems.
(5) Coordinate with the Independent System Operator to remove obstacles for customer-sited and aggregated distributed energy resources to participate in the wholesale energy markets.
(6) Establish a rebate program dedicated to energy storage and that carves out a portion of funding for low-income customers and disadvantaged communities.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.Section 2837.5 is added to the Public Utilities Code, to read:
2837.5.

The commission shall establish a program to incentivize residential and commercial customers to adopt energy storage systems.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.