Bill Text: CA SB886 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Electricity: energy storage systems.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB886 Detail]

Download: California-2015-SB886-Amended.html

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BILL NUMBER: SB 886	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 12, 2016
	AMENDED IN SENATE  MARCH 17, 2016

INTRODUCED BY   Senator Pavley

                        JANUARY 20, 2016

   An act to add Sections 454.53, 455.6,  2836.1,  and
9620.5 to the Public Utilities Code, relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 886, as amended, Pavley. Electricity: energy storage systems.
   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, 2015, and December 31, 2020. Existing law requires the governing
board of each local publicly owned electric utility to initiate a
process to determine appropriate targets for the utility to procure
viable cost-effective energy storage systems to be achieved by
December 31, 2015, and December 31, 2020. Existing law requires the
commission to adopt a process for each load-serving entity to file an
integrated resource plan and a schedule for periodic updates to the
plan to meet certain objectives. Existing law requires each publicly
owned electric utility to prudently plan for and procure resources,
including energy storage systems adequate to meet the 2015 and 2020
targets, to provide reliable electric service to its customers.
   This bill would require  the commission, by March 1, 2017,
to require  load-serving entities, in developing and
updating their integrated resource plans, to consider the  full
 benefits of procuring energy storage systems and  to
give priority to procuring   would require the
commission, in approving the plans, to require the procurement of
 energy storage systems  over   before
 fossil-fuel-based  generation.  
generation in specified circumstances.  The bill would require
 the commission on or before October 1, 2017, to require
 electrical  corporations  
corporations, by October 1, 2017,  to develop appropriate
tariffs  or programs  to provide incentives to customers to
install grid-connected energy storage systems on the customer side of
the electrical meter.  The bill would require the commission to
adopt appropriate targets for each load-serving entity to procure
viable and cost-effective energy storage systems to be achieved 
 by December 31, 2030, as specified.  Because a violation
of an order, decision, rule, direction, demand, or requirements of a
commission is a crime, this bill would impose a state-mandated local
program. The bill would require the governing board of each local
publicly owned electric utility, in planning for future procurement
of resources, to consider the benefits of procuring energy storage
systems and to  give priority to procuring  
procure  energy storage systems  over  
before  fossil-fuel-based  generation.  
generation in specified circumstances. The bill would require the
governing boards, by July 1, 2018, to adopt appropriate targets for
the utility to procure viable and cost-effective energy storage
systems to be achieved by December 31, 2030.  Because this bill
would impose additional requirements on the governing board of a
local publicly owned electric utility, 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 454.53 is added to the
Public Utilities Code, to read:
   454.53.  On or before March 1, 2017, the commission shall, in a
new proceeding or in an existing proceeding, require load-serving
entities, in developing and updating their integrated resource plans
as required by Section 454.52, to consider the benefits of procuring
energy storage systems, as defined in Section 2835, and to give
priority to procuring energy storage systems over fossil-fuel-based
generation.  
  SEC. 2.    Section 455.6 is added to the Public
Utilities Code, to read:
   455.6.  On or before October 1, 2017, the commission shall, in a
new proceeding or in an existing proceeding, require each electrical
corporation to develop appropriate tariffs to provide incentives to
customers of the electrical corporation to install energy storage
systems on the customer side of an electric meter that is connected
to the electric grid. 
   SECTION 1.    Section 454.53 is added to the 
 Public Utilities Code   , to read:  
   454.53.  The commission shall require load-serving entities, in
developing and updating their integrated resource plans pursuant to
Section 454.52, to consider the full benefits of procuring energy
storage systems, as defined in Section 2835. In approving an
integrated resource plan, the commission shall require that, to the
extent energy storage systems can meet resource needs as well as or
better than fossil-fuel-based generation at reasonably equivalent or
lower costs, the plans provide for the procurement of energy storage
systems before fossil-fuel-based generation. 
   SEC. 2.    Section 455.6 is added to the  
Public Utilities Code  , to read:  
   455.6.  The commission shall, in a new or existing proceeding,
require each electrical corporation, by October 1, 2017, to propose
new tariffs or programs to provide incentives to customers of the
electrical corporation for installing energy storage systems on the
customer side of an electric meter that is connected to the
electrical grid. 
   SEC. 3.    Section 2836.1 is added to the  
Public Utilities Code   , to read:  
   2836.1.  (a) (1) On or before January 1, 2018, the commission
shall adopt appropriate targets for each load-serving entity to
procure viable and cost-effective energy storage systems to be
achieved by December 31, 2030. Energy storage systems procured
pursuant to the targets shall be limited to those that reduce the
need for fossil-fuel-based generation, provide benefits to the
electrical grid, or support the integration of eligible renewable
energy resources procured pursuant to the California Renewables
Portfolio Standard Program (Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1).
   (2) This subdivision does not prohibit the commission's evaluation
and approval of any application for funding or recovery for costs of
any ongoing or new development, trial, or testing of energy storage
projects or technologies outside the targets required by this
chapter.
   (b) On or before July 1, 2018, the governing board of each local
publicly owned electric utility shall adopt appropriate targets for
the utility to procure viable and cost-effective energy storage
systems to be achieved by December 31, 2030. The governing board may
consider a variety of policies to encourage the cost-effective
deployment of energy storage systems to reach the targets, including
refinement of existing procurement methods to properly value energy
storage systems. 
   SEC. 3.   SEC. 4.   Section 9620.5 is
added to the Public Utilities Code, to read:
   9620.5.  The governing board of each local publicly owned electric
utility, in planning for future procurement of resources, shall
consider the benefits of procuring energy storage systems, as defined
in Section 2835,  and shall give priority to procuring
energy storage systems over fossil-fuel-based generation. 
 and, to the extent energy storage systems can meet resource
needs as well as or better than fossil-fuel-based generation at
reasonably equivalent or lower costs, procure energy storage systems
before fossil-fuel-based generation. 
   SEC. 4.   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.