Long duration bulk energy storage: procurement.

Existing law provides for the establishment of an Independent System Operator (ISO) , under the jurisdiction of the Federal Energy Regulatory Commission (FERC) , to secure generating and transmission resources necessary to guarantee achievement of specified minimum planning and operating reserve criteria for much of the state's electrical transmission system. This bill would require the ISO, on or before June 30, 2022, to complete a competitive solicitation process for the procurement of one or more long duration energy storage projects that in aggregate have at least 2,000 megawatts capacity, but not more than 2,400 megawatts, as provided. The bill would require the ISO, after December 31, 2030, and only if found to be necessary, to complete an additional competitive solicitation process for additional long duration bulk energy storage projects that in aggregate have up to 2,000 megawatts capacity and have targeted commercial operation dates of no later than January 1, 2045. The bill would require that the competitive solicitation processes provide for cost recovery from load-serving entities within the ISO-controlled electrical grid in a manner that allocates those costs among load-serving entities based on cost causation and each load-serving entity's need for, and benefits realized from, the long duration bulk energy storage. If FERC takes any action that materially affects California's clean energy and climate laws, programs, or policies, the bill would relieve the ISO from the duty to comply with the bill's requirements, as specified. Under existing law, a violation of the Public Utilities Act is a crime. Because the provisions of this bill would be a part of the act, a violation of which would be a crime, 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 a specified reason.