Electrical corporations: distributed energy storage systems., the official text

An act to add Section 469.5 to the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

Existing law requires the Public Utilities Commission 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, 2020. Existing law requires the commission to direct the state’s 3 largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.
This bill would require an electrical corporation, as part of the distribution planning process, to evaluate whether distributed energy storage systems can meet the identified reliability or capacity need, as provided. The bill would require an electrical corporation, if it determines that a third-party alternative may be feasible, to conduct a competitive solicitation or other transparent process to evaluate third-party solutions.
Under existing law, a violation of the Public Utilities Act or of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be part of the act, and a violation of a commission action implementing the bill’s requirements would be a crime, this 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.

The people of the State of California do enact as follows:

SECTION 1.
Section 469.5 is added to the Public Utilities Code, to read:
469.5.
(a) As part of the distribution planning process, an electrical corporation shall evaluate, pursuant to the comparison required by subdivision (b), whether distributed energy storage systems can meet the identified reliability or capacity need.
(b) The evaluation required pursuant to subdivision (a) shall include a comparison of total system costs, including each of the following:
(1) The cost of the proposed infrastructure investment.
(2) The cost of procuring or deploying distributed energy storage systems.
(3) Avoided or deferred infrastructure costs.
(4) Reliability and operational benefits.
(c) This section does not limit the ability of third-party providers to propose or develop distributed energy storage systems or other nonwire alternatives to meet identified system needs.
(d) If an electrical corporation determines that a third-party alternative may be feasible, it shall conduct a competitive solicitation or other transparent process to evaluate third-party solutions.
(e) This section shall not be construed to delay customer energization timelines.

SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.