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Bills

SB 1295: Electrical corporations: distributed energy storage systems and nonwire alternatives.

  • Session Year: 2025-2026
  • House: Senate
  • Latest Version Date: 2026-04-28

Current Status:

In Progress

(2026-05-12: Set for hearing May 14.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law requires the Public Utilities Commission (PUC) to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the PUC commission to direct the states 3 largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.

This bill would require the PUC, in addition to the requirements described above, on or before January 1, 2030, to consider procurement strategies to support the installation of distributed energy storage systems, as provided. The bill would require the State Energy Resources Conservation and Development Commission, in consultation with the PUC and the Independent System Operator, on or before July 1, 2028, and biennially thereafter, to identify and evaluate constrained distribution areas, as defined, and local capacity areas, as defined, for those purposes, as provided. As part of the procurement strategies considered by the PUC, the bill would require the PUC to require each load-serving entity to demonstrate that identified localized reliability vulnerability areas will be addressed within a reasonable planning horizon and using the least-cost portfolio of resources, including distributed energy storage systems and other nonwire alternatives, as specified. If the PUC 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 require the PUC to reconsider procurement strategies and appropriate targets not less than once every 3 years. The bill would authorize the PUC to approve, or modify and approve, electrical corporation programs to deploy, and investments in, distributed energy storage systems that include appropriate energy storage management systems and reasonable mechanisms for cost recovery. The bill would require the PUC, on or before January 1, 2028, to amend its tariffs that govern the deployment of energy storage systems, as provided. The bill would require the PUC to authorize an electrical corporation to earn a return on investments in and operation of distributed energy storage systems and other nonwire alternatives deployed to address localized reliability vulnerability areas. The bill would require the commission to establish performance-based mechanisms that allow an electrical corporation to earn incentives for achieving measurable outcomes, including, but not limited to, integration of cost-effective distributed energy resources, as provided. Existing law requires the PUC to adopt a process for each load-serving entity to file an integrated resource plan, adopt a schedule for periodic updates to the plan, and ensure each load-serving entity take specified actions, as specified.This bill would require that the integrated resource plan of each load-serving entity include energy storage systems, as provided.

This bill would require an electrical corporation, for any proposed distribution or transmission infrastructure investment above a threshold established by the commission, to evaluate whether distributed energy storage systems or other nonwire alternatives can meet the identified reliability or capacity need, as provided. The bill would require an electrical corporation, if it determines that a nonwire alternative may be feasible, to conduct a competitive solicitation or other transparent process to evaluate third-party solutions. The bill would prohibit the commission from approving rate recovery for a proposed infrastructure investment unless the electrical corporation demonstrates either that nonwire alternatives are not feasible within the required timeframe or that nonwire alternatives are not cost effective, as provided. The bill would authorize an electrical corporation to procure, own, or enter into a long-term contract for distributed energy storage systems interconnected at the distribution level to meet identified reliability or capacity needs, and would require the commission to authorize an electrical corporation to recover the reasonable costs of, and earn a return on, those distributed energy storage systems, as provided.

Under existing law, a violation of the Public Utilities Act or of any order, decision, rule, direction, demand, or requirement of the PUC commission is a crime.

Because certain the provisions of this bill would be part of the act, and a violation of a PUC commission action implementing the bills requirements would be a crime, 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 a specified reason.

Discussed in Hearing

Senate Standing Committee on Energy, Utilities and Communications11MIN
Apr 21, 2026

Senate Standing Committee on Energy, Utilities and Communications

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SB 1295: Electrical corporations: distributed energy storage systems and nonwire alternatives. | Digital Democracy