By June 1, 2018, all of the following shall occur:
(a) (1) The Los Angeles Department of Water and Power shall, in coordination with the city council of the City of Los Angeles, if it chooses to participate, determine the cost-effectiveness and feasibility of deploying, on an expedited basis, a minimum aggregate total of 100 megawatts of cost-effective energy storage solutions to help address the Los Angeles Basin’s electrical system operational limitations resulting from reduced gas deliverability from the Aliso Canyon natural gas storage facility.
(2) If the Los Angeles Department of Water and Power determines pursuant to paragraph (1) that deploying the cost-effective energy storage solutions, as described in paragraph (1), is cost effective and feasible, it shall consider deploying those cost-effective energy storage solutions after June 1, 2018.
(b) The commission shall, to the extent that doing so is cost effective and feasible and necessary to meet the reliability requirements of the electrical system in the Los Angeles Basin, direct an electrical corporation serving the Los Angeles Basin to deploy, pursuant to a competitive solicitation, a minimum aggregate total of 20 megawatts of cost-effective energy storage solutions to help address the Los Angeles Basin’s electrical system operational limitations resulting from reduced gas deliverability from the Aliso Canyon natural gas storage facility. An electrical corporation may count any cost-effective energy storage solution that it deploys pursuant to this subdivision towards the capacity requirement established pursuant to Section 2838.2 if the cost-effective storage solution that it deploys is a distributed energy storage system, as defined in subdivision (a) of Section 2838.2.
(c) (1) It is the intent of the Legislature that the commission and all public utilities having jurisdiction affected by this section or by actions taken pursuant to this section shall take immediate actions to support rapid compliance with this section, including by allowing or developing fast-tracked permitting, interconnection studies, and interconnection processes, and through rule waivers or adjustments where appropriate to support rapid or more rapid site acquisition for energy storage project developments and customer acquisition of energy storage solutions. This paragraph is not intended to in any way modify the obligations of the commission or a public utility under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(2) It is the intent of the Legislature that local governments having jurisdiction affected by this section or by actions taken pursuant to this section strongly consider taking immediate actions to support rapid compliance with this section, including by allowing or developing fast-tracked permitting, waiving or adjusting procedural requirements, to support rapid or more rapid site acquisition for energy storage project developments and customer acquisition of energy storage solutions. This paragraph is not intended to in any way modify the obligations of a local government under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(d) For purposes of this section, the following terms have the following meanings:
(1) “Cost-effective energy storage solution” means any grid-connected energy storage facility developed on or after the effective date of this section of any type or technology, including transmission-connected, distribution-connected, and behind-the-meter sited or located resources, that will mitigate the limitation on gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility. Cost-effective energy storage solutions shall be designed to be capable of providing a four-hour duration resource adequacy service, which may include energy delivery for the full four hours at a rated output, and shall be capable of delivering electricity to the source of demand and required to accept and execute reasonable remote or centralized dispatch commands.
(2) To “deploy” means to procure a cost-effective energy storage solution on or after the effective date of this section that may be a third-party-owned solution, or a solution procured pursuant to a power-purchase agreement or rebate program, or pursuant to any other third-party ownership structure, as allowed by applicable rules governing electric service and procurement, sited or located where the project will mitigate the limitation on gas storage capacity and gas deliverability resulting from the well failure at the Aliso Canyon natural gas storage facility.
(3) “Los Angeles Basin” means the area identified as the “Aliso Canyon Delivery Area” on page 11 of the Aliso Canyon Risk Assessment Technical Report, dated April 5, 2016.
(Added by Stats. 2017, Ch. 814, Sec. 3. (SB 801) Effective January 1, 2018.)
Last modified: October 25, 2018