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Chapter 7.7. Energy Storage Systems of California Public Utilities Code >> Division 1. >> Part 2. >> Chapter 7.7.
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.
(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.
(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, 2020. 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.
(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, 2020. 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.
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.
(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.
(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.
(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.
All procurement of energy storage systems by a load-serving
entity or local publicly owned electric utility shall be cost
effective.
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.
(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.
(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.
(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.
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).
(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).
The commission does not have authority or jurisdiction to
enforce any of the requirements of this chapter against a local
publicly owned electric utility.
