Energy: long-duration energy storage: procurement.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. 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 by October 1, 2013, and to reevaluate the determinations not less than once every 3 years. Pursuant to these provisions, the PUC has adopted decisions establishing energy storage system procurement targets. Existing law requires each load-serving entity, by January 1, 2016, and again by January 1, 2021, to submit a report to the PUC demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the PUC. Existing law requires the PUC to adopt a process for each load-serving entity to file an integrated resource plan and a schedule for periodic updates to the plan to ensure that load-serving entities accomplish specified objectives. Existing law requires each load-serving entity to prepare and file an integrated resource plan consistent with those objectives on a time schedule directed by the PUC and subject to PUC review. Pursuant to these authorities, the PUC has adopted a decision establishing 2 thresholds for the emissions of greenhouse gases, to meet by 2030, as the target ranges for the electric sector as part of the PUC's 2019–20 integrated resource planning process. That decision also establishes the amount of long-duration energy storage, and the in-service date of the storage, that are required to be included in the load-serving entity's integrated resource plans. This bill would require the PUC, by January 4, 2021, to report to the Governor, the Independent System Operator, the Department of Water Resources, and the State Energy Resources Conservation and Development Commission (Energy Commission) on the specific types and amount of long-duration energy storage and in-service dates of that storage included in the integrated resource plans submitted by load-serving entities. The bill would require the PUC, in the report, to state whether it will issue an order on or before March 1, 2021, requiring load-serving entities, in the aggregate, to procure, at a minimum, the amount of long-duration energy storage capacity identified in the commission's decision referenced above for a specific threshold of emissions of greenhouse gases. The bill would require the Department of Water Resources, if the PUC does not issue that order, to procure that amount of long-duration energy storage capacity, as specified, and would specify that the long-duration energy storage capacity is procured on behalf and for the benefit of the customers of the load-serving entities. The bill would provide that the costs incurred by the department resulting from the procurement are recoverable as a revenue requirement from those customers. The bill would require the PUC, upon request by the Department of Water Resources, to order electrical corporations to act as the agent of the department, to provide billing, collection, and other related services on terms and conditions that reasonably compensate the electrical corporations for their services, and to adequately secure payment to the department. The bill would establish the Long-Duration Energy Storage Account in the Department of Water Resources Electric Power Fund as a repository for moneys recovered from the customers of load-serving entities. The bill would continuously appropriate moneys in the account to the department for purposes of the procurement, thereby making an appropriation. This bill would require the PUC and the Energy Commission to timely incorporate consideration of long-duration energy storage systems, as defined, into their energy and resource planning. The bill would require the PUC and the Energy Commission to consider measures to advance described objectives for long-duration energy storage, including support through research and development, demonstration, procurement, and incentives. 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 the bill would be a crime, this bill would impose a state-mandated ​local program by creating a new crime. The bill would prohibit the San Diego County Water Authority from prequalifying or shortlisting or awarding a contract to perform any portion of a long-duration energy storage project, except as provided. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego. 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.