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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: 05/02/2017 09:00 PM
SB801:v95#DOCUMENT

Amended  IN  Senate  May 02, 2017
Amended  IN  Senate  April 17, 2017
Amended  IN  Senate  April 06, 2017
Amended  IN  Senate  March 29, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 801


Introduced by Senator Stern

February 17, 2017


An act to add Sections 353.17, 380.6, and 2836.7 to the Public Utilities Code, relating to energy, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 801, as amended, 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. Pursuant to a statute requiring it to adopt initiatives to reduce demand for electricity and reduce load during peak demand periods, including differential incentives for renewable or super clean distributed generation resources, the commission adopted decisions establishing a self-generation incentive program.
This bill would require an electrical corporation or local publicly owned electric utility that provides electric service to 30,000 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. The bill would require a gas corporation that provides gas service to 30,000 or more customers within the Los Angeles Basin to make publicly available, upon request of any person, information 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. The bill would require require, to the extent doing so is cost effective, an electrical corporation providing electric service within the Los Angeles Basin and a local publicly owned electric utility providing electric service to more than 250,000 customers within the Los Angeles Basin to maximize their use of demand response, renewable energy resources, energy efficiency, and technically feasible technologies 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.
(2) Existing law requires the 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.
This bill would require the Los Angeles Department of Water and Power to deploy a minimum aggregate total of 100 megawatts of cost-effective energy storage solutions and require an electrical corporation serving the Los Angeles Basin to deploy a minimum aggregate total of 20 megawatts of cost-effective energy storage solutions in addition to the procurement targets to be achieved by December 31, 2020, pursuant to existing law. The bill would authorize all moneys collected as fines or penalties by the commission or other state agency from a gas corporation serving the Los Angeles Basin pursuant to a proceeding relating to the well failure at the Aliso Canyon natural gas storage facility to be allocated by that agency to reduce the impact on ratepayers of the energy storage solutions required by these provisions. The bill would require the commission and specified public utilities to take immediate actions to support rapid compliance with these provisions, and would state the intent of the Legislature that local governments strongly consider taking immediate actions for this purpose.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the 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 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.
(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles Basin.
(4) This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 353.17 is added to the Public Utilities Code, to read:

353.17.
 (a) (1)  Except as provided in paragraph (2), an electrical corporation or local publicly owned electric utility that provides electric service to 30,000 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) An electrical corporation shall not make data available pursuant to paragraph (1) that is prohibited from being disclosed pursuant to state law.
(3) The data required to be made available pursuant to this subdivision shall be available upon request, commencing within 60 days of the effective date of this section.
(b) (1) Except as provided in paragraph (2), a gas corporation that provides gas service to 30,000 or more customers within the Los Angeles Basin shall make publicly available, upon request of any person, information 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 gas corporation shall not make information available pursuant to paragraph (1) that is prohibited from being disclosed pursuant to state law.
(3) The information required to be made available pursuant to this subdivision shall be available upon request, commencing within 60 days of the effective date of this section.
(c) 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. 2.

 Section 380.6 is added to the Public Utilities Code, to read:

380.6.
 (a) The commission shall require an electrical corporation providing electric service within the Los Angeles Basin Basin, to the extent that doing so is cost effective, to maximize the use of demand response, renewable energy resources, energy efficiency, and technically feasible technologies 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) A local publicly owned electric utility providing electric service to more than 250,000 customers within the Los Angeles Basin shall shall, to the extent that doing so is cost effective, maximize the use of demand response, renewable energy resources, energy efficiency, and technically feasible technologies 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.
(c) 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.
 In addition to energy storage systems to satisfy the requirements of Section 2836, by December 31, 2017, all of the following shall occur:
(a) The Los Angeles Department of Water and Power shall, pursuant to an all-source competitive solicitation administered by the Southern California Public Power Authority, deploy 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. These cost-effective energy storage solutions shall be operated in support of electric system operations. In deploying cost-effective energy storage solutions, the Southern California Public Power Authority shall issue a request for proposals no later than 30 days after the effective date of this section and shall close the bidding period within 30 days after the issuance of the request for proposals, and the Los Angeles Department of Water and Power shall enter into contracts within 60 days after the closing of the bidding period.
(b) The commission shall direct an electrical corporation serving the Los Angeles Basin to deploy, pursuant to an all-source 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. These cost-effective energy storage solutions shall be operated in support of electric system operations. In deploying cost-effective energy storage solutions, an electrical corporation subject to this section shall issue a request for proposals no later than 30 days after the effective date of this section, shall close the bidding period within 30 days after the issuance of the request for proposals, and shall enter into contracts within 60 days after the closing of the bidding period.
(c) All moneys collected as fines or penalties by the commission or another state agency from a gas corporation serving the Los Angeles Basin pursuant to a proceeding relating to the well failure at the Aliso Canyon natural gas storage facility first reported to the commission in October 2015 may be allocated by that agency to reduce the impact on ratepayers of the energy storage solutions pursuant to subdivisions (a) and (b).
(d) (1) 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.
(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, and 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.
(e) For purposes of this section, the following terms have the following meanings:
(1) “Cost-effective energy storage solutions” 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, 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.

 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. 5.

 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.

SEC. 6.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to mitigate, at the earliest possible time, harm from the gas leak at the Aliso Canyon natural gas storage facility, and to meet the immediate energy needs of the region, it is necessary that this act take effect immediately.