Energy storage systems.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing board. Existing law requires the PUC to open a proceeding 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, 2015, and December 31, 2020. If determined to be appropriate, the PUC is required to adopt the procurement targets and to reevaluate all of these determinations not less than once every 3 years. Existing law excludes an electrical corporation that has 60,000 or fewer customer accounts within California from these requirements. Existing law requires each load-serving entity to submit a report to the commission demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the commission by January 1, 2016, and again on January 1, 2021. Existing law requires the governing board of each local publicly owned electric utility to initiate a process to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems to be achieved by December 31, 2016, and December 31, 2020. If determined to be appropriate, the governing board is required to adopt the procurement targets, by October 1, 2014, and to reevaluate the determinations not less than once every 3 years. Existing law requires a local publicly owned electric utility to report to the State Energy Resources Conservation and Development Commission (Energy Commission) regarding the energy storage system procurement targets and policies adopted by the governing board, report any modifications made to those targets as a result of a reevaluation, and to submit reports demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the governing board. Existing law requires the PUC, in consultation with the State Air Resources Board and the Energy Commission, to direct the state's 3 largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems, as defined. Existing law authorizes the PUC to approve, or modify and approve, programs and investments in distributed energy storage systems, as provided, and requires the PUC to prioritize those programs and investments that provide distributed energy storage systems to public sector and low-income customers. Existing law makes no comparable requirement for local publicly owned electric utilities. This bill would establish 4 energy policy goals of the state with respect to energy storage and would require the PUC, on behalf of electrical corporations, and require the governing board, on behalf of a local publicly owned electric utility, to undertake specified actions with respect to customer- and load-sited energy storage systems in order to achieve those energy policy goals, including a rebate program dedicated to energy storage that carves out a portion of funding for low-income customers and disadvantaged communities. Because a violation of any order, decision, rule, direction, demand, or requirement of the PUC implementing these requirements would be a crime, this bill would impose a state-mandated local program. By placing requirements upon a local publicly owned electric utility, 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 specified reasons.