LEGISLATIVE COUNSEL'S DIGEST


AB 44, as amended, Blakeslee. Energy storage facilities.
(1) Under existing law, the Public Utilities Commission is vested
with regulatory authority over public utilities, including electrical
corporations, and the commission is authorized to fix the rates and
charges for every public utility. Existing law authorizes the
commission to approve an increase of one-half of 1 percent
to 1 percent 1/2 of 1% to 1% in the
rate of return otherwise allowed an electrical corporation for
investment by the corporation in generation facilities using
renewable resources.
This bill would authorize the commission, after a hearing, to
approve a similar increase in the rate of return for investment by a
corporation in energy storage facilities
systems , as defined, that (A) are used and useful, (B) have
costs of construction and operation over their useful life that are
less than other facilities that provide load shifting, voltage
support, and scheduling and shaping services for intermittent
renewable energy resources, and (C) perform any of 4 specified
purposes.
The bill would require the commission to develop a time-variant
tariff that creates incentives for eligible energy storage
facilities.
(2) The existing Public Utilities Act requires the commission to
review and adopt a procurement plan for each electrical corporation
in accordance with specified elements, incentive mechanisms, and
objectives. The elements, among other things, require that the plan
include a showing that the electrical corporation will, in order to
fulfill its unmet resource needs, until a 20% renewable resources
portfolio is achieved, procure renewable energy resources with the
goal of ensuring that at least an additional 1% per year of the
electricity sold by the electrical corporation is generated from
eligible renewable energy resources, provided sufficient funds are
made available to cover certain above-market costs.
This bill would require that an electrical corporation's proposed
procurement plan include a showing that the electrical corporation
will, in order to fulfill its unmet resource needs, procure resources
from eligible renewable energy resources in an amount sufficient to
meet its procurement requirements pursuant to the renewables
portfolio standard established pursuant to the California Renewables
Portfolio Standard Program. The bill would add a requirement that the
procurement plan include a showing that the electrical corporation
will incorporate cost-effective, reliable, and feasible energy
storage systems, both centralized and distributed, that reduce
emissions of greenhouse gases, or reduce demand for peak electrical
generation, or improve the reliable operation of the electrical grid.

Under
(3) Under existing law, a
violation of the Public Utilities Act or an order or
direction , decision, rule, direction,
demand, or requirement of the commission is a crime. Because
certain of the provisions of this bill would
require an order or other action of the commission to implement, and
a violation of that order or action would be a crime, the bill would
impose a state-mandated local program by creating a new crime
are within the act and require action by the
commission to implement its requirements, a violation of these
provisions would impose a state-mandated local program by creating a
new crime .
(2) 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.