SB 1347: Energy storage systems: procurement.

Existing law requires the Public Utilities Commission to determine appropriate targets, if any, for each load-serving entity, including an electrical corporation, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to direct the states three largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.

This bill would, by January 1, 2020, would require the commission, in addition to the requirements described above, to direct on or before January 1, 2020, to consider procurement strategies for the installation of a statewide total of up to 2,000 megawatts of energy storage systems. As part of the procurement strategies considered by the commission, the bill would require the commission to consider appropriate targets, if any, for electrical corporations, community choice aggregators, electric service providers, and certain electrical cooperatives (collectively, load-serving entities) to procure their proportionate share of a total of 2,000 megawatts, in aggregate, of viable and cost-effective energy storage systems and would authorize the commission to direct the load-serving entities to procure additional energy storage system capacity, as specified. The bill would authorize the electrical corporations to own and operate a certain percentage of these energy storage systems, measured by capacity, if certain conditions are met. systems, to be achieved by December 31, 2030. If the commission imposes an energy storage system procurement target on load-serving entities, the bill would authorize each load-serving entity to meet up to 50% of its procurement target through energy storage systems that it owns, that are interconnected at the transmission or distribution level, or that are located on the customer side of the meter, as specified. The bill would authorize community choice aggregators, electric service providers, and certain electrical cooperatives to own and operate energy storage systems to meet their allocated shares. The bill would require the commission to develop and make available to all load-serving entities a cost recovery mechanism that meets certain requirements. require the commission to reconsider procurement strategies and appropriate targets not less than once every 3 years.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because a violation of an order or decision of the commission implementing the requirements of this bill would be a crime, 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 a specified reason.