SECTIONS 2835-2839 - California Statutes

PUBLIC UTILITIES CODE

SECTION 2835-2839

2835. For purposes of this chapter, the following terms have the
following meanings:
(a) (1) "Energy storage system" means commercially available
technology that is capable of absorbing energy, storing it for a
period of time, and thereafter dispatching the energy. An "energy
storage system" may have any of the characteristics in paragraph (2),
shall accomplish one of the purposes in paragraph (3), and shall
meet at least one of the characteristics in paragraph (4).
(2) An "energy storage system" may have any of the following
characteristics:
(A) Be either centralized or distributed.
(B) Be either owned by a load-serving entity or local publicly
owned electric utility, a customer of a load-serving entity or local
publicly owned electric utility, or a third party, or is jointly
owned by two or more of the above.
(3) An "energy storage system" shall be cost effective and either
reduce emissions of greenhouse gases, reduce demand for peak
electrical generation, defer or substitute for an investment in
generation, transmission, or distribution assets, or improve the
reliable operation of the electrical transmission or distribution
grid.
(4) An "energy storage system" shall do one or more of the
following:
(A) Use mechanical, chemical, or thermal processes to store energy
that was generated at one time for use at a later time.
(B) Store thermal energy for direct use for heating or cooling at
a later time in a manner that avoids the need to use electricity at
that later time.
(C) Use mechanical, chemical, or thermal processes to store energy
generated from renewable resources for use at a later time.
(D) Use mechanical, chemical, or thermal processes to store energy
generated from mechanical processes that would otherwise be wasted
for delivery at a later time.
(b) "Load-serving entity" has the same meaning as defined in
Section 380.
(c) "New" means, in reference to an energy storage system, a
system that is installed and first becomes operational after January
1, 2010.
(d) "Offpeak" means, in reference to electrical demand, a period
that is not within a peak demand period.
(e) "Peak demand period" means a period of high daily, weekly, or
seasonal demand for electricity. For purposes of this chapter, the
peak demand period for a load-serving entity shall be determined, or
approved, by the commission and shall be determined, or approved, for
a local publicly owned electric utility, by its governing body.
(f) "Procure" and "procurement" means, in reference to the
procurement of an energy storage system, to acquire by ownership or
by a contractual right to use the energy from, or the capacity of,
including ancillary services, an energy storage system owned by a
load-serving entity, local publicly owned electric utility, customer,
or third party. Nothing in this chapter, and no action by the
commission, shall discourage or disadvantage development and
ownership of an energy storage system by an electrical corporation.

2836. (a) (1) On or before March 1, 2012, the commission shall open
a proceeding to determine appropriate targets, if any, for each
load-serving entity to procure viable and cost-effective energy
storage systems to be achieved by December 31, 2015, and December 31,
2020. As part of this proceeding, the commission may consider a
variety of possible policies to encourage the cost-effective
deployment of energy storage systems, including refinement of
existing procurement methods to properly value energy storage
systems.
(2) The commission shall adopt the procurement targets, if
determined to be appropriate pursuant to paragraph (1), by October 1,
2013.
(3) The commission shall reevaluate the determinations made
pursuant to this subdivision not less than once every three years.
(4) Nothing in this section prohibits the commission's evaluation
and approval of any application for funding or recovery of costs of
any ongoing or new development, trialing, and testing of energy
storage projects or technologies outside of the proceeding required
by this chapter.
(b) (1) On or before March 1, 2012, the governing board of each
local publicly owned electric utility shall 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, 2021. As part of this proceeding,
the governing board may consider a variety of possible policies to
encourage the cost-effective deployment of energy storage systems,
including refinement of existing procurement methods to properly
value energy storage systems.
(2) The governing board shall adopt the procurement targets, if
determined to be appropriate pursuant to paragraph (1), by October 1,
2014.
(3) The governing board shall reevaluate the determinations made
pursuant to this subdivision not less than once every three years.
(4) A local publicly owned electric utility shall report to the
Energy Commission regarding the energy storage system procurement
targets and policies adopted by the governing board pursuant to
paragraph (2), and report any modifications made to those targets as
a result of a reevaluation undertaken pursuant to paragraph (3).

2836.2. In adopting and reevaluating appropriate energy storage
system procurement targets and policies pursuant to subdivision (a)
of Section 2836, the commission shall do all of the following:
(a) Consider existing operational data and results of testing and
trial pilot projects from existing energy storage facilities.
(b) Consider available information from the California Independent
System Operator derived from California Independent System Operator
testing and evaluation procedures.
(c) Consider the integration of energy storage technologies with
other programs, including demand-side management or other means of
achieving the purposes identified in Section 2837 that will result in
the most efficient use of generation resources and cost-effective
energy efficient grid integration and management.
(d) Ensure that the energy storage system procurement targets and
policies that are established are technologically viable and cost
effective.

2836.4. (a) An energy storage system may be used to meet the
resource adequacy requirements established for a load-serving entity
pursuant to Section 380 if it meets applicable standards.
(b) An energy storage system may be used to meet the resource
adequacy requirements established by a local publicly owned electric
utility pursuant to Section 9620 if it meets applicable standards.

2836.6. All procurement of energy storage systems by a load-serving
entity or local publicly owned electric utility shall be cost
effective.

2837. Each electrical corporation's renewable energy procurement
plan, prepared and approved pursuant to Article 16 (commencing with
Section 399.11) of Chapter 2.3 of Part 1, shall require the utility
to procure new energy storage systems that are appropriate to allow
the electrical corporation to comply with the energy storage system
procurement targets and policies adopted pursuant to Section 2836.
The plan shall address the acquisition and use of energy storage
systems in order to achieve the following purposes:
(a) Integrate intermittent generation from eligible renewable
energy resources into the reliable operation of the transmission and
distribution grid.
(b) Allow intermittent generation from eligible renewable energy
resources to operate at or near full capacity.
(c) Reduce the need for new fossil-fuel powered peaking generation
facilities by using stored electricity to meet peak demand.
(d) Reduce purchases of electricity generation sources with higher
emissions of greenhouse gases.
(e) Eliminate or reduce transmission and distribution losses,
including increased losses during periods of congestion on the grid.
(f) Reduce the demand for electricity during peak periods and
achieve permanent load-shifting by using thermal storage to meet
air-conditioning needs.
(g) Avoid or delay investments in transmission and distribution
system upgrades.
(h) Use energy storage systems to provide the ancillary services
otherwise provided by fossil-fueled generating facilities.

2838. (a) (1) By January 1, 2016, each load-serving entity shall
submit a report to the commission demonstrating that it has complied
with the energy storage system procurement targets and policies
adopted by the commission pursuant to subdivision (a) of Section
2836.
(2) By January 1, 2021, each load-serving entity shall submit a
report to the commission demonstrating that it has complied with the
energy storage system procurement targets and policies adopted by the
commission pursuant to subdivision (a) of Section 2836.
(b) The commission shall ensure that a copy of each report
required by subdivision (a), with any confidential information
redacted, is available on the commission's Internet Web site.

2838.5. Notwithstanding any provision of this chapter, the
requirements of this chapter do not apply to either of the following:
(a) An electrical corporation that has 60,000 or fewer customer
accounts within California.
(b) A public utility district that receives all of its electricity
pursuant to a preference right adopted and authorized by the United
States Congress pursuant to Section 4 of the Trinity River Division
Act of August 12, 1955 (Public Law 84-386).

2839. (a) (1) By January 1, 2017, a local publicly owned electric
utility shall submit a report to the Energy Commission demonstrating
that it has complied with the energy storage system procurement
targets and policies adopted by the governing board pursuant to
subdivision (b) of Section 2836.
(2) By January 1, 2022, a local publicly owned electric utility
shall submit a report to the Energy Commission demonstrating that it
has complied with the energy storage system procurement targets and
policies adopted by the governing board pursuant to subdivision (b)
of Section 2836.
(b) The Energy Commission shall ensure that a copy of each report
or plan required by subdivisions (a) and (b), with any confidential
information redacted, is available on the Energy Commission's
Internet Web site, or on an Internet Web site maintained by the local
publicly owned electric utility that can be accessed from the Energy
Commission's Internet Web site.
(c) The commission does not have authority or jurisdiction to
enforce any of the requirements of this chapter against a local
publicly owned electric utility.