Existing law, the Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a general plan for the physical development of the county or city and authorizes the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities.

Existing law requires a city, county, or city and county to approve an application for the installation of electric vehicle charging stations, as defined, through the issuance of specified permits unless the city or county makes specified written findings. Existing law provides that the implementation of consistent statewide standards to achieve the timely and cost-effective installation of electric vehicle charging stations is a matter of statewide concern.

This bill would, on or before September 30, 2017, for a city, county, or city and county with a population of 200,000 or more residents, or January 31, 2018, for a city, county, or city and county with a population of less than 200,000 resident, residents, require the city, county, or city and county to make all documentation and forms associated with the permitting of advanced energy storage, as defined, available on a publicly accessible Internet Web site, as specified. The bill would require a city, county, or city and county to allow for the electronic submittal of a permit application and associated documentation, as specified. The bill would prohibit the calculation of a fee associated with the permitting or inspection of an advanced energy storage installation from being calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit. permit and inspect the advanced energy storage installation.

The bill would require the Governors Office of Planning and Research, on or before January 1, 2019, to create a California Energy Storage Permitting Guidebook, as specified.

By increasing the duties of local officials, this bill would create 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 a specified reason.

Existing law, the Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a general plan for the physical development of the county or city and authorizes the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities.

Existing law requires a city, county, or city and county to approve an application for the installation of electric vehicle charging stations, as defined, through the issuance of specified permits unless the city or county makes specified written findings. Existing law provides that the implementation of consistent statewide standards to achieve the timely and cost-effective installation of electric vehicle charging stations is a matter of statewide concern.

This bill would, on or before September 30, 2017, for a city, county, or city and county with a population of 200,000 or more residents, or January 31, 2018, for a city, county, or city and county with a population of less than 200,000 resident, require the city, county, or city and county to make all documentation and forms associated with the permitting of advanced energy storage, as defined, available on a publicly accessible Internet Web site, as specified. The bill would require a city, county, or city and county to allow for the electronic submittal of a permit application and associated documentation, as specified. The bill would prohibit the calculation of a fee associated with the permitting or inspection of an advanced energy storage installation from being calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit.

The bill would require the Governors Office of Planning and Research, on or before September 30, 2017, January 1, 2019, to create a California Energy Storage Permitting Guidebook, as specified.

By increasing the duties of local officials, this bill would create 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 a specified reason.

Existing law, the Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a general plan for the physical development of the county or city and authorizes the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities.

Existing law requires a city, county, or city and county to approve an application for the installation of electric vehicle charging stations, as defined, through the issuance of specified permits unless the city or county makes specified written findings. Existing law provides that the implementation of consistent statewide standards to achieve the timely and cost-effective installation of electric vehicle charging stations is a matter of statewide concern.

This bill would, on or before January 31, 2018, September 30, 2017, for a city, county, or city and county with a population of 200,000 or more residents, or June 30, 2018, January 31, 2018, for a city, county, or city and county with a population of less than 200,000 resident, require every the city, county, or city and county to create an expedited and streamlined permitting process for advanced energy storage installations. The bill would require the city, county, or city and county, in developing the ordinance, to refer to documented best practices, and would require the ordinance to substantially comply with the California Energy Storage Permitting Guidebook. The bill would also require, in developing an expedited review and checklist, the city, county, or city and county to develop a simplified standard plan so that an engineering plan check is unnecessary for standard advanced energy storage system configurations make all documentation and forms associated with the permitting of advanced energy storage, as defined, available on a publicly accessible Internet Web site, as specified. The bill would require a city, county, or city and county to allow for the electronic submittal of a permit application and associated documentation, as specified. The bill would prohibit the calculation of a fee associated with the permitting or inspection of an advanced energy storage installation from being calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit.

The bill would require the Governors Office of Planning and Research, on or before September 30, 2017, to create a California Energy Storage Permitting Guidebook, as specified.

By increasing the duties of local officials, this bill would create 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 a specified reason.

Existing law requires the Director of General Services to establish and staff the forms management center for the orderly design, implementation, and maintenance of a statewide forms management program.

This bill would make technical, nonsubstantive changes to this provision.

Date of Hearing: May 11, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2713

Author:(Chiu) – As Amended Ver:April 27, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY: This bill requires cities and counties to accept electronic submissions of permit applications for advanced energy storage installations, and requires the Governor's Office of Planning and Research (OPR) to create a California Energy Storage Permitting Guidebook. Specifically, this bill:

1. Requires, on or before September 30, 2017, every city, county, or city and county with a population of 200,000 or more residents, and on or before January 31, 2018, every city, county, or city and county with a population of less than 200,000 residents, to make all documentation and forms associated with the permitting of advanced energy storage available on a publicly accessible website, if the city, county, or city and county has an website.
2. Requires every city, county, or city and county to allow for electronic submission of a permit application and associated documentation, and to authorize the electronic signature on all forms, applications, and other documentation in lieu of a wet signature by an applicant.
3. Prohibits any fee charged for the permitting or inspection of an advanced energy storage installation to be calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit and inspect the installation.
4. Requires, on or before January 1, 2019, OPR, in consultation with local building officials, the State Fire Marshal, the storage industry, labor representative from the utility and construction industries, licensed electrical contractors, electrical corporations, publically owned utilities, the California Public Utilities Commission (CPUC), and other stakeholders, and through review of any existing streamlined permitting practices used by cities, counties, or city and counties, to create a California Energy Storage Permitting Guidebook (Guidebook) modeled substantially on the California Solar Permitting Guidebook.
5. Prohibits OPR, in developing the Guidebook, from including provisions that are in conflict with or inconsistent with provisions of the California Building standards Code, the California Electrical Code, or any other model code adopted by the California Building Standards Commission pursuant to the California Building Standards Law.

FISCAL EFFECT:

1. Annual costs of at least $110,000 to OPR (GF) for two years to consult with experts and stakeholders and develop the required guidelines and other information necessary to create a guidebook. This includes approximately $45,000 for Senior Counsel (1/3 PY) and $60,000 to $70,000 for a program analyst (1 PY).
2. Unknown, but likely significant costs to other state agencies to consult with OPR regarding guideline development. This may include the State Fire Marshal, CPUC, Building Standards Commission, Department of General Services, and others.
3. One-time costs of approximately $300,000 (GF) for OPR to develop and print the Guidebook. Staff notes that past guidebooks were paid for by outside groups. There is no such arrangement in this case.
4. Non-reimbursable costs to cities and counties to make documentation and forms associated with the permitting of advanced energy storage available on their websites, to allow electronic submissions of the applications, and authorize electronic signatures, likely fully offset by fees cities and counties are authorized to charge for these activities.

COMMENTS:

1. Purpose. According to the author, "Across cities and counties in California, applications to install energy storage projects are increasing but two critical elements are missing. First, the state lacks a ‘handbook’ for uniform best practices of energy storage permitting. Second, in some cities and counties across the state it remains difficult to access and submit the necessary documents and forms associated with the permitting of energy storage systems. The ‘handbook’ and online resources will help further the deployment of energy storage solutions while continuing to support the state’s renewable energy and greenhouse gas emissions goals.”
2. Background. AB 2514 (Skinner), Chapter 469, Statutes of 2010, required the CPUC to determine appropriate targets for load serving entities to procure energy storage system and required load serving entities to meet any targets adopted by the CPUC by 2015 and 2020. AB 2514 also required publicly owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021. In October 2013, the CPUC issued a decision that required California's three investor owned utilities to procure an aggregate of 1,324 Megawatts of energy storage by the end of 2020, with installation by the end of 2024.

Because the amount of electric generation is relatively fixed over short periods of time, even though demand for electricity fluctuates throughout the day, developing energy storage technologies can help the state manage the electric grid during peak demand periods. Energy storage devices can help make renewable energy, which are energy outputs that cannot be controlled by grid operators, easier to dispatch. The most common form of energy storage devices are batteries. However, there are no commercially available batteries that could cost-effectively store the large amount of electricity that can be produced by large scale wind and solar facilities. Utilities are continuing to engage in projects to determine the viability of different energy storage projects.

1. Energy Storage Permitting Guidebook. The California Solar Permitting Guidebook was developed for local governments and permitting agencies to facilitate installation of small solar energy systems. The guidebook provides recommendations in which local governments can reduce permit processing times and increase their output while facilitating local economic development. This bill requires OPR, on or before January 1, 2019, to create a California Energy Storage Permitting Guidebook modeled substantially on the California Solar Permitting Guidebook.

Premature? Unlike past efforts by OPR to develop guidebooks, where much guidance and best practices existed and on which OPR had been working for several years prior to the specific request, there is very little comparable existing information on energy storage on which to draw. Federal guidance has not yet been released, there are few, if any local model ordinances, OPR has no topic experts on staff, and outside groups are not yet actively engaged. Much of the relevant information that OPR gathered and compiled in the past, will have to be developed in this case, at much greater expense than in the past. The Committee may wish to consider whether there is a more efficient approach.

1. Related Legislation. AB 2868 (Gatto), pending hearing in this Committee, would require the PUC, in consultation with the State Air Resources Board and the State Energy Resources Conservation and Development Commission, to direct electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.
2. Previous Legislation.
3. AB 1236 (Chiu and Low), Chapter 598, Statutes of 2015, required counties and cities, including charter cities, to create an expedited permitting and inspection process for electric vehicle charging stations.
4. AB 2188 (Muratsuchi), Chapter 521, Statutes of 2014, required every city or county to adopt an ordinance that creates an expedited permitting process for small, residential rooftop solar energy systems, altered the definition of what is a reasonable restriction on a solar energy system, and made additional changes to the Solar Rights Act of 1978.
5. AB 2514 (Skinner), Chapter 469, Statutes of 2010, required the PUC to determine appropriate targets, if any, for load serving entities to procure energy storage systems, required load serving entities to meet any targets adopted by the PUC by 2015 and 2020, and required publicly-owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE

Mike Gatto, Chair

ABPCA Bill Id:AB 2713 (

Author:Chiu) – As Amended Ver:April 14, 2016

SUBJECT: Land use: local ordinances: energy systems

SUMMARY: Requires cities and counties to accept electronic submissions of permit applications for advanced energy storage installations, and creates a California Energy Storage Permitting Guidebook. Specifically, this bill:

1. Requires, on or before September 30, 2017, every city, county, or city and county with a population of 200,000 or more residents, and on or before January 31, 2018, every city, county, or city and county with a population of less than 200,000 residents, to make all documentation and forms associated with the permitting of advanced energy storage available on a publicly accessible Internet Web site, if the city, county, or city and county has an Internet Web site.
2. Requires every city, county, or city and county to allow for electronic submission of a permit application and associated documentation, and to authorize the electronic signature on all forms, applications, and other documentation in lieu of a wet signature by an applicant.
3. Prohibits any fee charged for the permitting or inspection of an advanced energy storage installation to be calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit.
4. Requires, on or before January 1, 2019, the Governor's Office of Planning and Research to, in consultation with local building officials, the State Fire Marshall, the storage industry, the California Public Utilities Commission (CPUC), and other stakeholders, and through review of any existing streamlined permitting practices used by cities, counties, or city and counties, create a California Energy Storage Permitting Guidebook modeled substantially on the California Solar Permitting Guidebook.
5. Defines "advanced energy storage" to mean energy storage system, as specified, as well as any energy storage system that is designed to provide backup energy services in the event of a grid outage, that is limited to both of the following:
   1. Electrochemical energy storage in nonventing packages.
   2. Customer sited installations.
6. Defines "customer sited" to mean the system is interconnected to the electric grid through an existing retail customer interconnection.
7. Defines "electronic submittal" to mean the utilization of one or more of the following:
   1. Email;
   2. The Internet;
   3. Facsimile.

EXISTING LAW:

1. Requires the CPUC, on or before March 1, 2012, to open a proceeding to determine appropriate targets, if any, 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. As part of this proceeding, the CPUC 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. (Public Utilities Code Section 2836)
2. Defines "energy storage system," for purposes of energy storage system targets, to mean commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy, as specified. (Public Utilities Code Section 2835)
3. Allows an "energy storage system" to have any of the following characteristics:
   1. Be either centralized or distributed.
   2. 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. (Public Utilities Code Section 2835)
4. Requires an "energy storage system" to 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. (Public Utilities Code Section 2835)
5. Requires an "energy storage system" to do one or more of the following:
   1. Use mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time.
   2. 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.
   3. Use mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time.
   4. Use mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time. (Public Utilities Code Section 2835)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Author Statement: "Our state has been and should continue to be the leader in energy storage technology. By capturing and discharging energy from renewable sources at optimal times, these solutions will help us achieve our state’s clean energy and greenhouse gas emissions goals, reduce our reliance on high emission power sources and improve our air quality. While this technology is not new and currently deployed in some jurisdictions, most cities and counties’ permitting processes have not caught up to the technology. The development of a California Energy Storage Guidebook will help the industry and local governments get on the same page to increase the deployment of this technology."
2. Background: In 2010, the Legislature passed AB 2514 (Skinner), Chapter 469, Statutes of 2010, which required the CPUC to determine appropriate targets, for load serving entities to procure energy storage system and require load serving entities to meet any targets adopted by the CPUC by 2015 and 2020. AB 2514 also required publicly owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021. In October 2013, the CPUC issued a decision that required California's three investor owned utilities to procure an aggregate of 1,324 Megawatts of energy storage by the end of 2020, with installation by the end of 2024.

Because the amount of electric generation is relative fixed over short periods of time, even though demand for electricity fluctuates throughout the day, developing energy storage technologies can help the state manage the electric grid during peak demand periods. Energy storage devices can help make renewable energy, which are energy outputs that cannot be controlled by grid operators, easier to dispatch. The most common form of energy storage devices are batteries, however, there are no commercially available batteries that could cost-effectively store the large amount of electricity that can be produced by large scale wind and solar facilities. Utilities are continuing to engage in projects to determine the viability of different energy storage projects.

The author may wish to consider striking reference to reliability, safety and resilience of the state's electrical system in the intent language.

1. Energy Storage Permitting: According to the author two critical elements are impeding the progress of energy storage even as energy storage applications continue to increase, "First, the state lacks a 'handbook' for uniform best practices of energy storage permitting. Second, in some cities and counties across the state it remains difficult to access and submit the necessary documents and forms associated with the permitting of energy storage systems."

This bill requires cities and counties to make all documentation and forms associated with permitting of advanced energy storage available on the city or county Web site, if it has one. Cities with 200,000 or more residents would have to comply by September 30, 2017, while cities with less than 200,000 residents have until January 31, 2018, to comply. This bill also requires cities and counties to allow for electronic submission of permit applications and associated documentation for advanced energy storage installations, including electronic signatures. This bill prohibits any fee charged for the permitting or inspection of an advanced energy storage installation to be calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit.

The author may wish to include a provision that allows the cost of inspections as well as the cost of issuing a permit.

1. Advanced Energy Storage System. This bill specifies that an advanced energy storage system means any energy storage system that is designed to provide backup energy services in the event of a grid outage and limited to electrochemical energy storage in nonventing packages and customer sited installations. As specified this means that thermal storage systems are not included in the provisions of this bill. Nor are batteries that require venting.

California Fire Code Section 608 requires ventilation systems designed for stationary flooded lead-acid, flooded Nickel-Cadmium and valve-regulated lead acid batteries to limit the maximum concentration of hydrogen to 1% of the total volume of the room or to provide continuous ventilation shall be provided at a rate of not less than 1 cubic foot per minute per square foot of floor area of the room. The code does not require ventilation for lithium-ion and lithium metal polymer batteries.

Thus, the provisions of this bill apply to lithium-ion and lithium metal polymer batteries unless the code is later modified to allow other battery types to be installed in a nonvented manner.

1. Energy Storage Permitting Guidebook: The California Solar Permitting Guidebook was developed for local governments and permitting agencies to facilitate installation of small solar energy systems. The guidebook provides recommendations in which local governments can reduce permit processing times and increase their output while facilitating local economic development.

This bill requires, on or before January 1, 2019, the Governor's Office of Planning and Research to, in consultation with local building officials, the State Fire Marshall, the storage industry, the CPUC, and other stakeholders, and through review of any existing streamlined permitting practices used by cities, counties, or city and counties, create a California Energy Storage Permitting Guidebook modeled substantially on the California Solar Permitting Guidebook.

The author may wish to consider an amendment that includes representatives from labor, the utility and construction industries, licensed electrical contractors, electrical corporations, and publicly owned utilities,

The author may wish to consider an amendment specifying that the Guidebook is consistent with applicable provisions of the California Building Code, the California Electrical Code, or any other model code adopted by the State Building Standards Commission pursuant to the California Building Standards Law.

1. Arguments in Support: According to the California Energy Storage Alliance, the sponsor of the bill, "This bill will significantly advance California’s ability to safely and efficiently deploy energy storage solutions … As a fast-responding and flexible asset, energy storage solutions will play a key role in helping California achieve its clean energy and greenhouse gas emissions goals by capturing and discharging energy from renewables, empowering customers to make smart decisions with their energy use, supporting grid needs such as ramping and voltage support, and reducing the need to rely on high emissions power sources. California's existing procurement requirement for energy storage has attracted significant investment and progress in new projects, driving new in-state job creation and the need for greater statewide collaboration."
2. Related Legislation:

AB 2868 (Gatto) 2016: Requires the CPUC, in consultation with the State Air Resources Board and the State Energy Resources Conservation and Development Commission, to direct electrical corporation to file applications for programs and investments to accelerate widespread deployment of distributed energy storage system. Pending in Assembly Utilities and Commerce Committee.

1. Prior Legislation:

AB 1236 (Chiu), Chapter 598, Statutes of 2015: Requires counties and cities, including charter cities, to create an expedited permitting and inspection process for electric vehicle charging stations.

AB 2188 (Muratsuchi), Chapter 521, Statutes of 2014: Requires every city or county to adopt an ordinance that creates an expedited permitting process for small, residential rooftop solar energy systems, altered the definition of what is a reasonable restriction on a solar energy system.

AB 2514 (Skinner), Chapter 469, Statutes of 2010: Requires the CPUC to determine appropriate targets, for load serving entities to procure energy storage system and require load serving entities to meet any targets adopted by the CPCU by 2015 and 2020. Also requires publicly owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021.

1. Suggested Amendments:

Amend Section 65850.8 as follows:

65850.8. (a) The Legislature finds and declares both of the following:

(1) It is the policy of the state to promote and encourage the installation of advanced energy storage and to limit obstacles to its use in order to increase the reliability, safety, and resilience of the state’s electrical system.

(2) It is further the intent of the Legislature that the applicable state agencies, including the Governor’s Office of Planning and Research, extend and expand the existing initiative being conducted by the Public Utilities Commission to further note best practices in the safe permitting of advanced energy storage. That effort should ultimately produce an Advanced Energy Storage Permitting Guidebook, taking advantage of the efforts and lessons learned in creating the streamlined permitting processes and modeling in part after the California Solar Permitting Guidebook.

(b) On or before September 30, 2017, every city, county, or city and county with a population of 200,000 or more residents, and on or before January 31, 2018, every city, county, or city and county with a population of less than 200,000 residents, shall make all documentation and forms associated with the permitting of advanced energy storage available on a publicly accessible Internet Web site, if the city, county, or city and county has an Internet Web site. The city, county, or city and county shall allow for electronic submission of a permit application and associated documentation, and shall authorize the electronic signature on all forms, applications, and other documentation in lieu of a wet signature by an applicant.

(c) Any fee charged for the permitting or inspection of an advanced energy storage installation shall not be calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit and inspect the advanced energy storage installation.

(d) On or before January 1, 2019, the Governor’s Office of Planning and Research shall, in consultation with local building officials, the State Fire Marshall, the storage industry, labor representatives from the utility and construction industries, licensed electrical contractors, electrical corporations, publicly owned utilities, the Public Utilities Commission, and other stakeholders, and through review of any existing streamlined permitting practices used by cities, counties, or city and counties, create a California Energy Storage Permitting Guidebook modeled substantially on the California Solar Permitting Guidebook.

(e) In developing the California Energy Storage Permitting Guidebook, the Governor's Office of Planning and Research shall not include provisions that are in conflict with or are inconsistent with provisions of the California Building Code, the California Electrical Code, or any other model code adopted by the State Building Standards Commission pursuant to the California Building Standards Law.

(e) (f) For purposes of this section, the following terms have the following meanings:

(1) “Advanced energy storage” means an energy storage system, as defined in Section 2835 of the Public Utilities Code, as well as an energy storage system that is designed to provide backup energy services in the event of a grid outage, that is limited to both of the following:

(A) Electrochemical energy storage in nonventing packages.

(B) Customer sited installations.

(2) “Customer sited” means the system is interconnected to the electrical grid through an existing retail customer interconnection.

(3) “Electronic submittal” means the utilization of one or more of the following:

(A) Email.

(B) The Internet.

(C) Facsimile.

REGISTERED SUPPORT / OPPOSITION:

Support

California Energy Storage Alliance (Sponsor)

Brightline

Stem

Opposition

None on file.

Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083

Date of Hearing: April 13, 2016

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Susan Talamantes Eggman, Chair

ABPCA Bill Id:AB 2713 (

Author:Chiu) – As Amended Ver:April 6, 2016

SUBJECT: Land use: local ordinances: energy systems.

SUMMARY: Requires cities and counties to accept electronic submissions of permit applications for advanced energy storage installations, and requires the creation of a California Energy Storage Permitting Guidebook. Specifically, this bill:

1. Requires, on or before September 30, 2017, every city, county, or city and county with a population of 200,000 or more residents, and on or before January 31, 2018, every city, county, or city and county with a population of less than 200,000 residents, to make all documentation and forms associated with the permitting of advanced energy storage available on a publicly accessible Internet Web site, if the city, county, or city and county has an Internet Web site.
2. Requires every city, county, or city and county to allow for electronic submission of a permit application and associated documentation for advanced energy storage installations, and to authorize the electronic signature on all forms, applications, and other documentation in lieu of a wet signature by an applicant.
3. Prohibits any fee charged for the permitting or inspection of an advanced energy storage installation from being calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit.
4. Requires, on or before September 30, 2017, the Governor’s Office of Planning and Research (OPR) to create a California Energy Storage Permitting Guidebook (Energy Storage Guidebook) modeled substantially on the California Solar Permitting Guidebook (Solar Guidebook), in consultation with local building officials, the State Fire Marshall, the storage industry, the Public Utilities Commission (PUC), and other stakeholders, and through review of any existing streamlined permitting practices used by cities, counties, or city and counties.
5. Provides the following definitions:
   1. “Advanced energy storage” means an energy storage system, as defined in current law governing energy storage procurement targets for load-serving entities and publicly-owned utilities, as well as an energy storage system that is designed to provide backup energy services in the event of a grid outage, that is limited to either of the following:
      1. Electrochemical energy storage in nonventing packages; or,
      2. Customer sited installations.
   2. “Customer sited” means the system is interconnected to the electrical grid through an existing retail customer interconnection.
   3. “Electronic submittal” means the utilization of one or more of the following: Email, the Internet, or facsimile.
6. Makes the following findings:
   1. It is the policy of the state to promote and encourage the installation of advanced energy storage and to limit obstacles to its use in order to increase the reliability, safety, and resilience of the state’s electrical system.
   2. It is further the intent of the Legislature that the applicable state agencies, including OPR, extend and expand the existing initiative being conducted by the PUC to further note best practices in the safe permitting of advanced energy storage. That effort should ultimately produce an Energy Storage Guidebook, taking advantage of the efforts and lessons learned in creating the streamlined permitting processes and modeling in part after the Solar Guidebook.
7. Provides that no reimbursement is required by this bill, pursuant to Section 6 of Article XIII B of the California Constitution, because a local agency has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this bill.

EXISTING LAW:

1. Provides for the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities.
2. Requires every city or county to adopt an ordinance that creates an expedited permitting process for small, residential rooftop solar energy systems and for electric vehicle charging stations.
3. Requires the PUC to determine appropriate targets, if any, for load serving entities to procure energy storage systems, requires load serving entities to meet any targets adopted by the PUC by 2015 and 2020, and requires publicly-owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021.
4. Defines, for the purposes of energy storage system targets, "energy storage system" to mean a commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy.
5. Allows an energy storage system to have any of the following characteristics:
   1. Be either centralized or distributed; and,
   2. 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 jointly owned by two or more of the above.
6. Requires an energy storage system to 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.
7. Requires an energy storage system to do one or more of the following:
   1. Use mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time;
   2. 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;
   3. Use mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time; or,
   4. Use mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time.

FISCAL EFFECT: This bill is keyed fiscal.

COMMENTS:

1. Bill Summary. This bill requires cities and counties to make all documentation and forms associated with permitting of advanced energy storage available on the city or county website, if it has one. Cities with 200,000 or more residents would have to comply by September 30, 2017, while cities with less than 200,000 residents have until January 31, 2018, to comply. This bill also requires cities and counties to allow for electronic submission of permit applications and associated documentation for advanced energy storage installations, including electronic signatures. This bill prohibits any fee charged for permitting or inspection of an advanced energy storage installation from being calculated based on the value of the installation or any other factor not directly associated with the cost to issue the permit.

This bill also requires OPR to create an Energy Storage Guidebook by September 30, 2017. This guidebook must be modeled substantially on the existing Solar Guidebook and developed in consultation with local building officials, the State Fire Marshall, the storage industry, the PUC, and other stakeholders. Review of any existing streamlined permitting practices used by cities or counties must also be included in the process of developing the Energy Storage Guidebook.

This bill is sponsored by the California Energy Storage Alliance.

1. Author's Statement. According to the author, "Across cities and counties in California, applications to install energy storage projects are increasing but two critical elements are missing. First, the state lacks a ‘handbook’ for uniform best practices of energy storage permitting. Second, in some cities and counties across the state it remains difficult to access and submit the necessary documents and forms associated with the permitting of energy storage systems. The ‘handbook’ and online resources will help further the deployment
   of energy storage solutions while continuing to support the state’s renewable energy and greenhouse gas emissions goals.”
2. Background. At the end of 2010, the California Legislature enacted AB 2514, directing the PUC to set energy storage procurement targets for California investor-owned utilities (IOUs) and other load serving entities. In October 2013, the PUC issued Decision 13-10-040 requiring the three California IOUs to procure an aggregate of 1,325 MW of energy storage by the end of 2020, with installations by the end of 2024. AB 2514 also required publicly-owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021.

One of the distinctive characteristics of the electric power sector is that the amount of electricity that can be generated is relatively fixed over short periods of time, although demand for electricity fluctuates throughout the day. Developing technology to store electricity so it can be available to meet demand whenever needed represents a major breakthrough in electricity distribution. Helping to try and meet this goal, electricity storage devices can manage the amount of power required to supply customers at times when need is greatest, which is during peak load. These devices can also help make renewable energy, the output of which cannot be controlled by grid operators, smooth and easy to dispatch. Storage devices can provide frequency regulation to maintain the balance between the network's load and power generated. Thus, energy storage holds substantial promise for transforming the electric power industry. There are several types of energy storage. This bill is limited to battery storage only.

1. Related Legislation. AB 2868 (Gatto) of 2016 would require the PUC, in consultation with the State Air Resources Board and the State Energy Resources Conservation and Development Commission, to direct electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems, as defined.
2. Previous Legislation. AB 1236 (Chiu and Low), Chapter 598, Statutes of 2015, required counties and cities, including charter cities, to create an expedited permitting and inspection process for electric vehicle charging stations.

AB 2188 (Muratsuchi), Chapter 521, Statutes of 2014, required every city or county to adopt an ordinance that creates an expedited permitting process for small, residential rooftop solar energy systems, altered the definition of what is a reasonable restriction on a solar energy system, and made additional changes to the Solar Rights Act of 1978.

AB 2514 (Skinner), Chapter 469, Statutes of 2010, required the PUC to determine appropriate targets, if any, for load serving entities to procure energy storage systems, required load serving entities to meet any targets adopted by the PUC by 2015 and 2020, and required publicly-owned utilities to set their own targets for the procurement of energy storage and meet those targets by 2016 and 2021.

1. Committee Amendments. The Committee may wish to amend this bill as follows:
   1. OPR Guidebook Due Date. This bill requires OPR to develop an Energy Storage Guidebook by September 30, 2017. However, OPR's guidebook addressing rooftop solar took between two and three years for OPR to complete. The Committee may wish to change the due date for the OPR Energy Storage Guidebook to January 1, 2019.
   2. Technical Amendment. There is an error in the bill's definition of advanced energy storage, which should be amended to read: "Advanced energy storage" means an energy storage system, as defined in current law governing energy storage procurement targets for load-serving entities and publicly-owned utilities, as well as an energy storage system that is designed to provide backup energy services in the event of a grid outage, that is limited to either both of the following:
      1. Electrochemical energy storage in nonventing packages; and,
      2. Customer sited installations.
2. Arguments in Support. The California Energy Storage Alliance, sponsor of this bill, writes, "As a fast-responding and flexible asset, energy storage solutions will play a key role in helping California achieve its clean energy and greenhouse gas emissions goals by capturing and discharging energy from renewables, empowering customers to make smart decisions with their energy use, supporting grid needs such as ramping and voltage support, and reducing the need to rely on high emissions power sources.

"California’s existing procurement requirement for energy storage has attracted significant investment and progress in new projects, driving new in-state job creation and the need for greater statewide collaboration. AB 2713 provides a timeframe for the state to develop a handbook of permitting best practices which will help cities and counties to advance and streamline their own permitting processes. Additional stipulations in the bill, such as reasonable application fees will support the smoother, safer and timely deployments of energy storage."

1. Arguments in Opposition. None on file.
2. Double-Referral. This bill is double-referred to the Utilities and Commerce Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Energy Storage Alliance [SPONSOR]

Ice Energy

SolarCity

Stem

Opposition

None on file

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958