Long-duration energy storage systems.

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. This bill would require the PUC and the State Energy Resources Conservation and Development Commission (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. 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. This bill would require the PUC, as part of the integrated resource planning process, to undertake specified activities to support eligible renewable energy resource goals, to support operational flexibility and reliability, and to enhance resiliency on the local and distribution level. Existing law provides for the establishment of an Independent System Operator (ISO) as nonprofit public benefit corporations and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. Pursuant to existing law, the PUC sought and received authority for the ISO from the Federal Energy Regulatory Commission (FERC) to enable the ISO to secure generating and transmission resources necessary to guarantee achievement of planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. This bill would require the ISO, with stakeholder engagement, to review the modeling done by the PUC as part of the 2017–18 integrated resource planning proceeding or, if available, the modeling inputs and assumptions identified as part of the last succeeding integrated resource planning proceeding cycle, with regard to the 30,000,000 metric ton carbon emissions target for the electric sector under the high-load, low natural gas generation availability scenario, to make an assessment as to whether long-duration energy storage is needed under that scenario on or before 2030, and to make specified related determinations. The bill would require the ISO, by March 31, 2021, to report its conclusions based upon its review and assessment and the reasons supporting its conclusions to the PUC, the Energy Commission, and the Governor. Within 90 days after receipt of the conclusions of the ISO, the bill would require the Governor, in consultation with the PUC and the Energy Commission, to determine whether to accept the conclusions of the review and assessment. The bill would require the Governor, in determining whether to accept the conclusion of the review and assessment, to consider specified matters. If the Governor, after consideration of those matters, determines to accept the conclusions of the review and assessment and to proceed with the development of long-duration energy storage systems, the bill would require the Governor to notify the ISO that it is authorized to develop, pursuant to a public process, a competitive solicitation process and operational and cost-recovery mechanisms to enable the development of long-duration energy storage systems, meeting specified requirements. If, following submission of an application for approval by the ISO with the FERC, the FERC seeks to take certain actions, the bill would require the ISO to withdraw its application and the ISO would not be required to develop and implement a competitive solicitation process and operational and cost-recovery mechanisms to enable the development of long-duration energy storage systems.