SB 1295: Distributed energy storage systems: procurement.

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 commission PUC 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 commission, PUC, in addition to the requirements described above, on or before January 1, 2030, to consider procurement strategies for the installation of a statewide total of up to 40,000 megawatts of energy storage systems. 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 commission, PUC, the bill would require the commission to consider appropriate targets, if any, for PUC to require each load-serving entities to procure viable and cost-effective energy storage systems, to be achieved on or before December 31, 2040. 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 commission 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 commission 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.

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

Because certain provisions of this bill would be part of the act, and a violation of a commission PUC 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.