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SB-801 Aliso Canyon natural gas storage facility: electrical grid data: electricity demand reduction and response: energy storage solutions.(2017-2018)

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Date Published: 10/16/2017 02:00 PM
SB801:v88#DOCUMENT

Senate Bill No. 801
CHAPTER 814

An act to amend Section 972 of, and to add Sections 2104.7, 2836.7, 9616, and 9618 to, the Public Utilities Code, relating to energy.

[ Approved by Governor  October 14, 2017. Filed with Secretary of State  October 14, 2017. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 801, Stern. Aliso Canyon natural gas storage facility: electrical grid data: electricity demand reduction and response: energy storage solutions.
(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law, enacted during the energy crisis of 2000–01, requires a local publicly owned electric utility to review at the earliest practicable date its rates, tariffs, and rules to identify barriers to and determine the appropriate balance of costs and benefits of distributed energy resources in order to facilitate the installation of distributed energy resources in the interest of its customer-owners and the state, and to hold at least one noticed public meeting to solicit public comment on the review and any recommended changes.
This bill would require a local publicly owned electric utility that provides electric service to 250,000 or more customers within the Los Angeles Basin to make publicly available, upon request of any person, electrical grid data necessary or useful to enable distributed energy resource providers to target solutions that support reliability in the area where electrical reliability has been impacted as a result of reductions in gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility.
(2) Existing law requires each local publicly owned electric utility, in procuring energy to serve the load of its retail end-use customers, to first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. The California Renewables Portfolio Standard Program requires each local publicly owned electric utility to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, to achieve the procurement requirements established by the program.
To the extent doing so is cost effective, this bill would require a local publicly owned electric utility providing electric service to more than 250,000 customers within the Los Angeles Basin to maximize the use of demand response, renewable energy resources, and energy efficiency to reduce demand in the area where electrical reliability has been impacted as a result of reductions in gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility.
(3) Existing law requires the Public Utilities Commission to determine appropriate targets for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the governing board of each local publicly owned electric utility to determine appropriate targets for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020.
Existing law requires the Public Utilities Commission, in consultation with the State Air Resources Board and the State Energy Resources Conservation and Development 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 Public Utilities Commission to approve, or modify and approve, programs and investments in distributed energy storage systems, up to a maximum capacity of 500 megawatts in aggregate, as provided.
This bill would require the Los Angeles Department of Water and Power, in coordination with the city council of the City of Los Angeles, by June 1, 2018, to determine the cost-effectiveness and feasability of deploying a minimum aggregate total of 100 megawatts of cost-effective energy storage solutions and, if it determines that doing so is cost effective and feasible, to consider deploying those cost-effective energy storage solutions after June 1, 2018. The bill would require an electrical corporation serving the Los Angeles Basin, by June 1, 2018, to the extent doing so is cost effective and feasible and necessary to meet the reliability requirements of the electrical system in the Los Angeles Basin, to deploy a minimum aggregate total of 20 megawatts of cost-effective energy storage solutions and would authorize the electrical corporation to count these cost-effective energy storage solutions towards the capacity requirement for purposes of the distributed energy storage requirements described above.
(4) The Public Utilities Act provides for the assessment of criminal fines and civil penalties for violation of the act or an order, decision, rule, direction, demand, or requirement of the commission. Existing law requires that fines and penalties imposed by the Public Utilities Commission pursuant to the Public Utilities Act be paid to the General Fund.
Notwithstanding this requirement, this bill would require certain moneys collected by the Public Utilities Commission from a gas corporation serving the Los Angeles Basin pursuant to an administrative enforcement or legal proceeding relating to the well failure at the Aliso Canyon natural gas storage facility to be deposited in the Aliso Canyon Recovery Account, which the bill would create. The bill would authorize moneys in the Aliso Canyon Recovery Account to be allocated, upon appropriation by the Legislature, for purposes of mitigating impacts on local air quality, public health, and ratepayers resulting from the well failure at Aliso Canyon.
(5) Existing law creates the Gas Storage Facility Leak Mitigation Account and requires the commission to deposit moneys from penalties assessed against a gas corporation in regards to a natural gas storage facility leak into the account. Existing law specifies purposes for these moneys, including purposes solely applicable to moneys from penalties assessed for the Aliso Canyon gas leak.
This bill would repeal the provisions establishing the account and the provisions concerning the expenditure of moneys deposited in the account.
(6) The bill would state the intent of the Legislature that the Public Utilities Commission and specified public utilities shall take immediate actions to support rapid compliance with the bill’s provisions, and would state the intent of the Legislature that local governments strongly consider taking immediate actions for these purposes.
(7) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime.
Because certain of the provisions of this bill would be a part of the act and because a violation of an order or decision of the Public Utilities Commission implementing its requirements by an electrical corporation would be a crime, this bill would impose a state-mandated local program by creating a new crime.
Because the bill would impose additional duties upon local publicly owned electric utilities in the Los Angeles Basin, 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 specified reasons.
(8) This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles Basin.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 972 of the Public Utilities Code is amended to read:

972.
 (a) A penalty assessed against a gas corporation pursuant to this part in regards to a natural gas storage facility leak shall at least equal the amount necessary to reduce the impact on the climate from greenhouse gases by an amount equivalent to the impact on the climate from the greenhouse gases emitted by the leak from the natural gas storage facility, as determined by the State Air Resources Board. In determining the amount necessary to fully offset the impact on the climate from the gases emitted by the leak, the commission shall consider the extent to which the gas corporation has mitigated, or is in the process of mitigating, the impact on the climate from greenhouse gas emissions resulting from the leak.
(b) This section shall not affect or be interpreted to affect the authority of the State Air Resources Board to adopt rules and regulations to reduce greenhouse gas emissions at natural gas storage facilities or to require mitigation of natural gas leaks from those facilities.

SEC. 2.

 Section 2104.7 is added to the Public Utilities Code, to read:

2104.7.
 (a) Notwithstanding Section 2104, all moneys collected pursuant to any settlements, unless restricted by a court for another purpose, abatement orders, fines, or penalties by the commission from a gas corporation serving the Los Angeles Basin pursuant to an administrative enforcement or legal proceeding relating to the well failure at the Aliso Canyon natural gas storage facility first reported to the commission in October 2015 shall be deposited in the Aliso Canyon Recovery Account, which is hereby created in the State Treasury. Moneys in the account may be allocated, upon appropriation by the Legislature, for purposes of mitigating impacts on local air quality, public health, and ratepayers resulting from the well failure at Aliso Canyon, including evaluation of any negative effects on public health and enhancing the cost-effectiveness and feasibility of implementing Sections 380.6 and 2836.7.
(b) For purposes of this section, “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.

SEC. 3.

 Section 2836.7 is added to the Public Utilities Code, to read:

2836.7.
 By June 1, 2018, all of the following shall occur:
(a) (1) The Los Angeles Department of Water and Power shall, in coordination with the city council of the City of Los Angeles, if it chooses to participate, determine the cost-effectiveness and feasibility of deploying, on an expedited basis, a minimum aggregate total of 100 megawatts of cost-effective energy storage solutions to help address the Los Angeles Basin’s electrical system operational limitations resulting from reduced gas deliverability from the Aliso Canyon natural gas storage facility.
(2) If the Los Angeles Department of Water and Power determines pursuant to paragraph (1) that deploying the cost-effective energy storage solutions, as described in paragraph (1), is cost effective and feasible, it shall consider deploying those cost-effective energy storage solutions after June 1, 2018.
(b) The commission shall, to the extent that doing so is cost effective and feasible and necessary to meet the reliability requirements of the electrical system in the Los Angeles Basin, direct an electrical corporation serving the Los Angeles Basin to deploy, pursuant to a competitive solicitation, a minimum aggregate total of 20 megawatts of cost-effective energy storage solutions to help address the Los Angeles Basin’s electrical system operational limitations resulting from reduced gas deliverability from the Aliso Canyon natural gas storage facility. An electrical corporation may count any cost-effective energy storage solution that it deploys pursuant to this subdivision towards the capacity requirement established pursuant to Section 2838.2 if the cost-effective storage solution that it deploys is a distributed energy storage system, as defined in subdivision (a) of Section 2838.2.
(c) (1) It is the intent of the Legislature that the commission and all public utilities having jurisdiction affected by this section or by actions taken pursuant to this section shall take immediate actions to support rapid compliance with this section, including by allowing or developing fast-tracked permitting, interconnection studies, and interconnection processes, and through rule waivers or adjustments where appropriate to support rapid or more rapid site acquisition for energy storage project developments and customer acquisition of energy storage solutions. This paragraph is not intended to in any way modify the obligations of the commission or a public utility under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(2) It is the intent of the Legislature that local governments having jurisdiction affected by this section or by actions taken pursuant to this section strongly consider taking immediate actions to support rapid compliance with this section, including by allowing or developing fast-tracked permitting, waiving or adjusting procedural requirements, to support rapid or more rapid site acquisition for energy storage project developments and customer acquisition of energy storage solutions. This paragraph is not intended to in any way modify the obligations of a local government under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(d) For purposes of this section, the following terms have the following meanings:
(1) “Cost-effective energy storage solution” means any grid-connected energy storage facility developed on or after the effective date of this section of any type or technology, including transmission-connected, distribution-connected, and behind-the-meter sited or located resources, that will mitigate the limitation on gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility. Cost-effective energy storage solutions shall be designed to be capable of providing a four-hour duration resource adequacy service, which may include energy delivery for the full four hours at a rated output, and shall be capable of delivering electricity to the source of demand and required to accept and execute reasonable remote or centralized dispatch commands.
(2) To “deploy” means to procure a cost-effective energy storage solution on or after the effective date of this section that may be a third-party-owned solution, or a solution procured pursuant to a power-purchase agreement or rebate program, or pursuant to any other third-party ownership structure, as allowed by applicable rules governing electric service and procurement, sited or located where the project will mitigate the limitation on gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility.
(3) “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.

SEC. 4.

 Section 9616 is added to the Public Utilities Code, to read:

9616.
 (a) To the extent that doing so is cost effective, a local publicly owned electric utility providing electric service to 250,000 or more customers within the Los Angeles Basin shall maximize the use of demand response, renewable energy resources, and energy efficiency to reduce demand in the area where electrical reliability has been impacted as a result of reductions in gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility first reported to the commission in October 2015.
(b) For purposes of this section, “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.

SEC. 5.

 Section 9618 is added to the Public Utilities Code, to read:

9618.
 (a) (1) Except as provided in paragraph (2), a local publicly owned electric utility that provides electric service to 250,000 or more customers within the Los Angeles Basin shall make publicly available, upon request of any person, electrical grid data necessary or useful to enable distributed energy resource providers to target solutions that support reliability in the area where electrical reliability has been impacted as a result of reductions in gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility first reported to the commission in October 2015.
(2) A local publicly owned electric utility shall not make data available pursuant to paragraph (1) that is prohibited from being disclosed pursuant to state or federal law.
(3) The data made available pursuant to this subdivision shall be available pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), commencing within 60 days of the effective date of this section.
(b) For purposes of this section, “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.

SEC. 6.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances surrounding natural gas storage and electrical reliability in the Los Angeles Basin.

SEC. 7.

 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.