CHAPTER 7.4. Long-Duration Energy Storage Program [25640 - 25645]
( Chapter 7.4 added by Stats. 2022, Ch. 61, Sec. 5. )
For purposes of this chapter, the following definitions apply:
(a) “Energy storage system” has the same meaning as defined in Section 2835 of the Public Utilities Code.
(b) “Financial incentive” includes a contract, grant, loan, rebate, block grant, or other appropriate funding mechanism.
(c) “Under-resourced community” has the same meaning as defined in Section 71130.
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)
The commission shall establish and implement the Long-Duration Energy Storage Program to provide financial incentives for eligible projects, located at eligible storage facilities, that have power ratings of at least one megawatt and are capable of reaching a target of at least eight hours of continuous discharge of electricity at that power rating in order to deploy innovative energy storage systems to the electrical grid for purposes of providing critical capacity and grid services.
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)
(a) The commission may establish project and storage facility eligibility guidelines for purposes of this chapter.
(b) Any eligibility guidelines established pursuant to subdivision (a) shall be consistent with both of the following requirements:
(1) “Eligible storage facility” shall include, but not be limited to, an energy storage system that is interconnected to the electrical grid in California or to a California balancing authority.
(2) (A) “Eligible project” shall include, but not be limited to, an eligible storage facility that includes any of the following:
(i) Compressed air or liquid air technologies.
(ii) Flow batteries, advanced chemistry batteries, or mechanical energy storage.
(iii) Thermal storage or aqueous battery systems.
(iv) A hydrogen demonstration project.
(B) “Eligible project” shall not include a pumped storage project or lithium-ion-based storage technology.
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)
In implementing the Long-Duration Energy Storage Program, the commission may do all of the following:
(a) In addition to any other authorized method of providing moneys to participants in the Long-Duration Energy Storage Program, use financial incentives.
(b) Award Long-Duration Energy Storage Program moneys for technical assistance, including, but not limited to, providing outreach to eligible industries, identifying promising technologies, assessing market conditions needed to accelerate commercial traction of the technology, assisting with technical review of proposals and deliverables, identifying opportunities that provide significant benefits to the electrical grid, and performing benefits
analysis. The commission may contract for, or through interagency agreement obtain, technical, scientific, and administrative services and expertise from one or more entities to support the Long-Duration Energy Storage Program.
(c) Adopt guidelines or other standards at a business meeting for the Long-Duration Energy Storage Program. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the adoption of the guidelines or other standards adopted by the commission pursuant to this chapter.
(d) (1) Notwithstanding any other law, noncompetitively award Long-Duration Energy Storage Program moneys through an amendment to, or a new agreement with a party to or recipient of, contracts or grants from California governmental entities or a federal agency if the recipient
has received funding for the original project through a competitive bid process from a California governmental entity or federal agency and the awarding of those moneys is consistent with the stated goals and criteria of the Long-Duration Energy Storage Program.
(2) Notwithstanding any other law, noncompetitively award Long-Duration Energy Storage Program moneys to a governmental entity, national laboratory, entity contracted by the federal government to operate a national laboratory, or foundation established to serve the University of California or California State University.
(3) Notwithstanding any other law, noncompetitively award Long-Duration Energy Storage Program moneys to any entity if the cost to the state is reasonable and the commission makes any of the following determinations:
(A) The expertise,
service, or product is unique.
(B) A competitive solicitation would frustrate the obtainment of necessary information, goods, or services in a timely manner.
(C) The moneys to be awarded would fund the next phase of a multiphased project, the multiphased project was funded through competitively awarded agreement, and the entity satisfactorily performed the competitively awarded agreement.
(D) It is in the best interests of the state to do so.
(E) The entity will use the moneys as matching funds for federally awarded moneys.
(e) Notwithstanding any other law, in its discretion, advance up to 25 percent of the Long-Duration Energy Storage Program moneys awarded pursuant to this
chapter.
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)
Notwithstanding any other law, a commission agreement entered into for purposes of the Long-Duration Energy Storage Program shall not require the review, consent, or approval of the Department of General Services or any other state department or agency and are not required to comply with the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)
In providing financial incentives pursuant to this chapter, the commission shall give preference to an eligible project that does one or more of the following:
(a) Increases the reliability and resiliency of the electrical grid.
(b) Adds electrical grid services when the electrical grid is stressed or anticipating pending energy challenges.
(c) Increases the use of renewable energy and reduces the impact of climate change on the electrical grid or on connected facilities or communities, including by improving air quality, reducing emissions of greenhouse gases, or providing under-resourced communities with increased reliability and
resiliency.
(d) Lowers energy costs and provides employment opportunities for residents of under-resourced communities.
(e) Interconnects to the electrical grid and is commercially operational by 2028.
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)