Bill Text: CA SB1508 | 2023-2024 | Regular Session | Amended
Bill Title: Electricity: energy storage systems.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-25 - From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 3.) (April 22). [SB1508 Detail]
Download: California-2023-SB1508-Amended.html
|
Amended
IN
Senate
March 18, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1508
| Introduced by Senator Stern |
February 16, 2024 |
An act relating to energy. to amend Sections 2835, 2836, 2836.2, 2837, and 2838 of the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 1508, as amended, Stern.
Solar energy: multifamily housing. Electricity: energy storage systems.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. 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, as defined, to be achieved by specified dates, and authorizes the PUC to consider a variety of possible policies to encourage the cost-effective deployment of energy storage systems. Existing law similarly 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 and authorizes the governing board to consider a variety of possible policies, as specified. Existing law requires each electrical corporation’s renewable energy procurement plan to require the utility to procure new energy storage systems that are appropriate to allow the electrical corporation to comply with the energy storage system procurement targets and policies and to address the acquisition and use of energy storage systems in order to achieve specified purposes. Existing law requires each load-serving entity to submit, by specified dates, reports to the PUC demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the PUC.
This bill would require the PUC, on or before March 1, 2025, to adopt appropriate targets for each load-serving entity to procure viable and cost-effective energy storage systems, including long-duration energy storage systems, as defined,
multiday energy storage systems, as defined, and emerging energy storage technologies, to be achieved by specified dates, and would require the PUC to determine the amount of new energy storage systems, as defined, that each load-serving entity would be required to deploy in order to facilitate a reliable, zero-carbon electricity grid, and achieve net-zero greenhouse gas emissions as soon as possible, as provided. The bill would require the governing board of each local publicly owned electric utility, on or before March 1, 2025, 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 specified dates, and to report those targets to the State Energy Resources Conservation and Development Commission, as provided. The bill would require that each electrical corporation’s renewable energy procurement plan achieve additional specified purposes, including reducing the demand for electricity during net peak
periods, achieving permanent load shifting, achieving the objectives of a reliable, zero-carbon electricity grid and net-zero greenhouse gas emissions as soon as possible, and achieving an optimized overall portfolio of resources that use renewable energy generation and energy storage systems. The bill would update the specified dates by which each load-serving entity is required to submit reports to the PUC demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the PUC.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because a violation of a PUC action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
In addition, to the extent the bill would impose new requirements on local publicly owned electric
utilities, 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 specified reasons.
Existing law establishes the Multifamily Affordable Housing Solar Roofs Program, also known as the Solar on Multifamily Affordable Housing Program. Existing law requires the commission, as part of the program, to award monetary incentives for qualifying solar energy systems, as defined, that are installed on multifamily residential property of at least 5 rental housing units that is, or will be, operated to provide deed-restricted low-income residential housing, as defined, and that meet one or more specified requirements, including that at least 66% of the households have incomes at or below 80% of the area median income, through December 31, 2032.
This bill would state the intent of the Legislature to enact future legislation to facilitate the installation of solar energy systems and solar energy storage technologies in multifamily housing.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 2835 of the Public Utilities Code is amended to read:2835.
For purposes of this chapter, the following terms have the following meanings:(a) (1) “Energy storage system” means commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy. An “energy storage system” may have any of the characteristics in paragraph (2), shall accomplish one of the purposes in paragraph (3), and shall meet at least one of the characteristics in paragraph (4).
(2) An “energy storage system” may have any of the following characteristics:
(A) Be either centralized or distributed.
(B) Be either owned by a load-serving entity or local publicly owned electric utility, a customer of a load-serving entity or local publicly owned electric utility, or a third party, or is jointly owned by two or more of the above.
(3) An “energy storage system” shall be cost effective and either reduce emissions of greenhouse gases, reduce demand for peak electrical generation, defer or substitute for an investment in generation, transmission, or distribution assets, or improve the reliable operation of the electrical transmission or distribution grid.
(4) An “energy storage system” shall do one or more of the following:
(A) Use mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time.
(B) Store thermal energy for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity at that later time.
(C) Use mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time.
(D) Use mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time.
(b) “Load-serving entity” has the same meaning as defined in Section 380.
(c) “Long-duration energy storage” means an energy storage system with the capability to continuously discharge electricity at its rated capacity for a duration of no less than eight
hours.
(d) “Multiday energy storage” means an energy storage system with the capability to continuously discharge electricity at its rated capacity for a duration of more than 24 hours.
(c)
(e) “New” means, in reference to an energy storage system, a system that is installed and first becomes operational after January 1, 2010.
(d)
(f) “Offpeak” means, in reference to electrical demand, a period that is not within a peak demand period.
(e)
(g) “Peak demand period” means a period of high daily, weekly, or seasonal demand for electricity. For purposes of this chapter, the peak demand period for a load-serving entity shall be determined, or approved, by the commission and shall be determined, or approved, for a local publicly owned electric utility, utility by its governing body.
(f)
(h) “Procure” and “procurement” means, in reference to the procurement of an energy storage system, to acquire by ownership or by a contractual right to use the energy from, or the capacity of, including ancillary services, an energy storage system owned by a load-serving entity, local publicly owned electric utility, customer, or third party. Nothing in this This chapter, and no an action by the commission, shall not discourage or disadvantage development and ownership of an energy storage system by an electrical corporation.
SEC. 2.
Section 2836 of the Public Utilities Code is amended to read:2836.
(a) (1) On or before March 1,(2) The commission shall adopt determine the procurement targets, if determined to be appropriate pursuant to amount of new energy storage systems, in megawatts and megawatthours of capacity, that each load-serving entity shall deploy by each of the dates described in paragraph (1), by October 1, 2013. including within the categories of long-duration energy storage and multiday energy storage, in order to facilitate a reliable, zero-carbon electricity grid, pursuant to Sections 454.51 to 454.53, inclusive, and achieve net-zero greenhouse gas emissions as soon as possible, pursuant to Section 38562.2 of the Health and Safety Code.
(3) The commission shall determine a set of reasonable actions each load-serving entity shall be required to undertake in order to facilitate the development of energy storage systems that rely on new or emerging technologies and that are likely to be beneficial to achieving state policy goals with lower costs, improved reliability, improved resilience, or
reduced burdens on disadvantaged communities.
(3)
(4) The commission shall reevaluate the determinations made pursuant to this subdivision not less than once every three years.
(4)Nothing in this
(5) This section prohibits does not prohibit the commission’s evaluation and approval of any application for funding or recovery of costs of any ongoing or new development, trialing, and testing of energy storage projects or technologies outside of the proceeding required by this chapter.
(6) For purposes of this subdivision, “new energy storage system” means an energy storage system that is contracted for, placed in service by, and ordered by the commission on or after January 1, 2025.
(b) (1) On or before March 1, 2012, 2025, the governing board of each local publicly owned electric utility shall 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, 2028, December 31, 2030, and December 31, 2020. 2035. As part of this proceeding, the governing board shall consider the objectives described in paragraphs (2) and (3) of subdivision (a), and may consider a variety of possible policies to encourage the cost-effective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems.
(2) The governing board shall adopt the procurement targets, if determined to be appropriate pursuant to paragraph (1), by October 1, 2014. 2025.
(3) The governing board shall reevaluate the determinations made pursuant to this subdivision not less than once every three years.
(4) A local publicly owned electric utility shall report to the Energy Commission regarding the energy storage system procurement targets and policies adopted by the governing board pursuant to paragraph (2), and report any modifications made to those targets as a result of a reevaluation undertaken pursuant to paragraph (3).
SEC. 3.
Section 2836.2 of the Public Utilities Code is amended to read:2836.2.
In adopting and reevaluating appropriate energy storage system procurement targets and policies pursuant to subdivision (a) of Section 2836, the commission shall do all of the following:(a) Consider existing operational data and results of testing and trial pilot projects from existing energy storage facilities.
(b) Consider available information from the California Independent System Operator derived from California Independent System Operator testing and evaluation procedures.
(c) Consider the integration of energy storage technologies with other programs, including demand-side management or other means of achieving the purposes identified in Section
2837 that will result in the most efficient use of generation resources and cost-effective energy efficient grid integration and management.
(d) Ensure that the energy storage system procurement targets and policies that are established are technologically viable and cost effective. in the interest of ratepayers.
(e) Consider energy storage system needs to ensure grid reliability during multiday periods of atypical and extreme weather, including periods of low renewable energy generation, and in scenarios without existing fossil fuel generation.
SEC. 4.
Section 2837 of the Public Utilities Code is amended to read:2837.
Each electrical corporation’s renewable energy procurement plan, prepared and approved pursuant to Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1, shall require the utility to procure new energy storage systems, including long-duration energy storage systems and multiday energy storage systems, that are appropriate to allow the electrical corporation to comply with the energy storage system procurement targets and policies adopted pursuant to Section 2836. The plan shall address the acquisition and use of energy storage systems in order to achieve the following purposes:(a) Integrate intermittent generation from eligible renewable energy resources into the reliable operation of the transmission and distribution grid. grid, including during multiday extreme or atypical weather events.
(b) Allow intermittent generation from eligible renewable energy resources to operate at or near full capacity.
(c) Reduce the need for new fossil-fuel powered peaking fossil fuel-powered generation facilities by using stored electricity to meet peak demand. demand, including for the expected duration of multiday extreme or atypical weather events.
(d) Reduce purchases of electricity generation sources with higher emissions of greenhouse gases.
(e) Eliminate or reduce transmission and distribution losses, including increased losses during periods of congestion on the grid.
(f) Reduce the demand for electricity during peak periods and achieve permanent load-shifting load shifting by using thermal storage to meet air-conditioning needs.
(g) Avoid or delay investments in transmission and distribution system upgrades.
(h) Use energy storage systems to provide the ancillary services otherwise provided by fossil-fueled generating facilities.
(i) Reduce the demand for electricity during net peak periods and achieve permanent load shifting by using energy storage systems to meet building electrification and transportation electrification needs.
(j) Achieve the objectives of a reliable, zero-carbon electricity grid, pursuant to Sections
454.51 to 454.53, inclusive, and achieve net-zero greenhouse gas emissions as soon as possible, pursuant to Section 38562.2 of the Health and Safety Code.
(k) Achieve an optimized overall portfolio of resources that use renewable energy generation and energy storage systems, including long-duration energy storage and multiday energy storage systems.
SEC. 5.
Section 2838 of the Public Utilities Code is amended to read:2838.
(a) (1) By January 1,(2) By January 1, 2021, 2031, each load-serving entity shall submit a report to the commission demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the commission pursuant to subdivision (a) of Section 2836.
(b) The commission shall ensure that a copy of each report required by subdivision (a), with any confidential information redacted, is available on the commission’s Internet Web site. internet website.
SEC. 6.
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.It is the intent of the Legislature to enact future legislation to facilitate the installation of solar energy systems and solar energy storage technologies in multifamily housing.
