AMENDED IN SENATE MAY 26, 2017

AMENDED IN SENATE MAY 2, 2017

AMENDED IN SENATE APRIL 17, 2017
AMENDED IN SENATE MARCH 23, 2017

SENATE BILL No. 700

Introduced by Senator Wiener

February 17, 2017

An act to amend Sections 379.6 and 2835 of, to add the heading of
Article 1 (commencing with Section 2835) to, and to add Article 2
(commencing with Section 2839.50) to, Chapter 7.7 of Part 2 of Division
1 of, the Public Utilities Code, relating to energy.

legislative counsels digest

SB 700, as amended, Wiener. Energy Storage Initiative.
Existing law requires the Public Utilities Commission (PUC) to open
a proceeding 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, 2015, and
December 31, 2020. If determined to be appropriate, the commission
is required to adopt the procurement targets, by October 1, 2013, and
to reevaluate the determinations not less than once every 3 years.
Existing law excludes an electrical corporation that has 60,000 or fewer
customer accounts within California from these requirements. Pursuant
to these requirements, the commission adopted Decision 13-10-040
(October 17, 2013), Decision Adopting Energy Storage Procurement
Framework and Design Program.
In response to a requirement to adopt initiatives, on or before March
7, 2001, to reduce demand for electricity and reduce load during peak

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demand periods, including differential incentives for renewable or super

clean distributed generation resources, the PUC adopted decisions
establishing a self-generation incentive program. Existing law authorizes
the PUC to authorize the annual collection of not more than double the
amount authorized for the self-generation incentive program in the 2008
calendar year, through December 31, 2019. Existing law requires the
PUC to require electrical corporations to administer the program for
distributed energy resources established pursuant to the above-described
law until January 1, 2020, and to separately administer solar technologies
pursuant to the California Solar Initiative. Existing law requires the
PUC to provide repayment of all unallocated funds collected for the
self-generation incentive program on January 1, 2021, to reduce
ratepayer costs.
This bill would require the PUC to establish the Energy Storage
Initiative to provide rebates to customers of electrical corporations for
the installation of energy storage systems meeting consistent with certain
requirements. The bill would require the PUC to conduct a proceeding
to determine an annual amount of moneys moneys, within specified
bounds, from calendar year 2018 through December 31, 2027, to be
collected by electrical corporations to fund the Energy Storage Initiative.
The bill would require the governing boards of specified local publicly
owned electric utilities, by December 1, 2018, to establish an Energy
Storage Initiative to provide rebates to their customers for the installation
of energy storage systems meeting certain requirements. The bill would
authorize the PUC to modify incentive levels and to limit eligibility
based on income levels for residential applicants to ensure market
transformation and the achievement of other goals of the Energy Storage
Initiative. The bill would require each local publicly owned electric
utility, utility with a specified number of service connections and each
electrical cooperative with a specified electrical demand, on or before
December 1, 2018, to establish an Energy Storage Initiative and to
submit the budget for the initiative to the State Energy Resources
Conservation and Development Commission. Because this bill would
increase the duties of local publicly owned electric utilities, this bill
would impose a state-mandated local program.
This bill would remove the eligibility under the self-generation
incentive program of energy storage systems that are qualified to receive
rebates under the Energy Storage Initiative. The bill would reduce the
annual amount collected for the self-generation incentive program by
the annual amount to be collected by the electrical corporations that

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would be authorized established by the commission for the Energy

Storage Initiative.
Under existing law, a violation of the Public Utilities Act or any order,
decision, rule, direction, demand, or requirement of the commission is
a crime.
Because a violation of an order or decision of the commission
implementing the requirements of this bill would be a crime, the bill
would impose a state-mandated local program by creating a new crime.
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 specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.

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

line 1 SECTION 1. Section 379.6 of the Public Utilities Code is

line 2 amended to read:
line 3 379.6. (a)(1)It is the intent of the Legislature that the
line 4 self-generation incentive program increase deployment of
line 5 distributed generation and energy storage systems to facilitate the
line 6 integration of those resources into the electrical grid, improve
line 7 efficiency and reliability of the distribution and transmission
line 8 system, and reduce emissions of greenhouse gases, peak demand,
line 9 and ratepayer costs. It is the further intent of the Legislature that
line 10 the commission, in future proceedings, provide for an equitable
line 11 distribution of the costs and benefits of the program.
line 12 (2)(A)The commission, in consultation with the Energy
line 13 Commission, may authorize the annual collection of not more than
line 14 double the amount authorized for the self-generation incentive
line 15 program in the 2008 calendar year, through December 31, 2019.
line 16 The commission shall require the administration of the program
line 17 for distributed energy resources originally established pursuant to
line 18 Chapter 329 of the Statutes of 2000 until January 1, 2021. On
line 19 January 1, 2021, the commission shall provide repayment of all
line 20 unallocated funds collected pursuant to this section to reduce
line 21 ratepayer costs.

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line 1 (B)The annual collection authorized pursuant to subparagraph

line 2 (A) shall be reduced by the amount authorized to be collected
line 3 established by the commission pursuant to Section 2839.52.
line 4 (3)The commission shall administer solar technologies
line 5 separately, pursuant to the California Solar Initiative adopted by
line 6 the commission in Decisions 05-12-044 and 06-01-024, as modified
line 7 by Article 1 (commencing with Section 2851) of Chapter 9 of Part
line 8 2 of Division 1 of this code and Chapter 8.8 (commencing with
line 9 Section 25780) of Division 15 of the Public Resources Code.
line 10 (b)(1)Eligibility for incentives under the self-generation
line 11 incentive program shall be limited to distributed energy resources
line 12 that the commission, in consultation with the State Air Resources
line 13 Board, determines will achieve reductions in emissions of
line 14 greenhouse gases pursuant to the California Global Warming
line 15 Solutions Act of 2006 (Division 25.5 (commencing with Section
line 16 38500) of the Health and Safety Code).
line 17 (2)On or before July 1, 2015, the commission shall update the
line 18 factor for avoided greenhouse gas emissions based on the most
line 19 recent data available to the State Air Resources Board for
line 20 greenhouse gas emissions from electricity sales in the
line 21 self-generation incentive program administrators service areas as
line 22 well as current estimates of greenhouse gas emissions over the
line 23 useful life of the distributed energy resource, including
line 24 consideration of the effects of the California Renewables Portfolio
line 25 Standard.
line 26 (c)Eligibility for the funding of any combustion-operated
line 27 distributed generation projects using fossil fuel is subject to all of
line 28 the following conditions:
line 29 (1)An oxides of nitrogen (NOx) emissions rate standard of 0.07
line 30 pounds per megawatthour and a minimum efficiency of 60 percent,
line 31 or any other NOx emissions rate and minimum efficiency standard
line 32 adopted by the State Air Resources Board. A minimum efficiency
line 33 of 60 percent shall be measured as useful energy output divided
line 34 by fuel input. The efficiency determination shall be based on 100
line 35 percent load.
line 36 (2)Combined heat and power units that meet the 60-percent
line 37 efficiency standard may take a credit to meet the applicable NOx
line 38 emissions standard of 0.07 pounds per megawatthour. Credit shall
line 39 be at the rate of one megawatthour for each 3,400,000 British
line 40 thermal units (Btus) of heat recovered.

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line 1 (3)The customer receiving incentives shall adequately maintain

line 2 and service the combined heat and power units so that during
line 3 operation the system continues to meet or exceed the efficiency
line 4 and emissions standards established pursuant to paragraphs (1)
line 5 and (2).
line 6 (4)Notwithstanding paragraph (1), a project that does not meet
line 7 the applicable NOx emissions standard is eligible if it meets both
line 8 of the following requirements:
line 9 (A)The project operates solely on waste gas. The commission
line 10 shall require a customer that applies for an incentive pursuant to
line 11 this paragraph to provide an affidavit or other form of proof that
line 12 specifies that the project shall be operated solely on waste gas.
line 13 Incentives awarded pursuant to this paragraph shall be subject to
line 14 refund and shall be refunded by the recipient to the extent the
line 15 project does not operate on waste gas. As used in this paragraph,
line 16 waste gas means natural gas that is generated as a byproduct of
line 17 petroleum production operations and is not eligible for delivery
line 18 to the utility pipeline system.
line 19 (B)The air quality management district or air pollution control
line 20 district, in issuing a permit to operate the project, determines that
line 21 operation of the project will produce an onsite net air emissions
line 22 benefit compared to permitted onsite emissions if the project does
line 23 not operate. The commission shall require the customer to secure
line 24 the permit prior to receiving incentives.
line 25 (d)In determining the eligibility for the self-generation incentive
line 26 program, minimum system efficiency shall be determined either
line 27 by calculating electrical and process heat efficiency as set forth in
line 28 Section 216.6, or by calculating overall electrical efficiency.
line 29 (e)(1)Eligibility for incentives under the program shall be
line 30 limited to distributed energy resource technologies that the
line 31 commission determines meet all of the following requirements:
line 32 (A)The distributed energy resource technology shifts onsite
line 33 energy use to off-peak time periods or reduces demand from the
line 34 grid by offsetting some or all of the customers onsite energy load,
line 35 including, but not limited to, peak electric load.
line 36 (B)The distributed energy resource technology is commercially
line 37 available.
line 38 (C)The distributed energy resource technology safely utilizes
line 39 the existing transmission and distribution system.

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line 1 (D)The distributed energy resource technology improves air

line 2 quality by reducing criteria air pollutants.
line 3 (2)For purposes of this subdivision, distributed energy resource
line 4 technologies does not include energy storage systems that are
line 5 eligible for a rebate pursuant to Article 2 (commencing with
line 6 Section 2839.50) of Chapter 7.7 of Part 2.
line 7 (f)Recipients of the self-generation incentive program funds
line 8 shall provide relevant data to the commission and the State Air
line 9 Resources Board, upon request, and shall be subject to onsite
line 10 inspection to verify equipment operation and performance,
line 11 including capacity, thermal output, and usage to verify criteria air
line 12 pollutant and greenhouse gas emissions performance.
line 13 (g)In administering the self-generation incentive program, the
line 14 commission shall determine a capacity factor for each distributed
line 15 generation system energy resource technology in the program.
line 16 (h)(1)In administering the self-generation incentive program,
line 17 the commission may adjust the amount of rebates and evaluate
line 18 other public policy interests, including, but not limited to,
line 19 ratepayers, energy efficiency, peak load reduction, load
line 20 management, and environmental interests.
line 21 (2)The commission shall consider the relative amount and the
line 22 cost of greenhouse gas emissions reductions, peak demand
line 23 reductions, system reliability benefits, and other measurable factors
line 24 when allocating program funds between eligible technologies.
line 25 (i)The commission shall ensure that distributed generation
line 26 resources are made available in the program for all ratepayers.
line 27 (j)In administering the self-generation incentive program, the
line 28 commission shall provide an additional incentive of 20 percent
line 29 from existing program funds for the installation of eligible
line 30 distributed generation resources manufactured in California.
line 31 (k)The costs of the program adopted and implemented pursuant
line 32 to this section shall not be recovered from customers participating
line 33 in the California Alternate Rates for Energy (CARE) program.
line 34 (l)The commission shall evaluate the overall success and impact
line 35 of the self-generation incentive program based on the following
line 36 performance measures:
line 37 (1)The amount of reductions of emissions of greenhouse gases.
line 38 (2)The amount of reductions of emissions of criteria air
line 39 pollutants measured in terms of avoided emissions and reductions

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line 1 of criteria air pollutants represented by emissions credits secured

line 2 for project approval.
line 3 (3)The amount of energy reductions measured in energy value.
line 4 (4)The amount of reductions of customer peak demand.
line 5 (5)The ratio of the electricity generated by distributed energy
line 6 resource generation projects receiving incentives from the program
line 7 to the electricity capable of being produced by those projects,
line 8 commonly known as a capacity factor.
line 9 (6)The value to the electrical transmission and distribution
line 10 system measured in avoided costs of transmission and distribution
line 11 upgrades and replacement.
line 12 (7)The ability to improve onsite electricity reliability as
line 13 compared to onsite electricity reliability before the self-generation
line 14 incentive program technology was placed in service.
line 15 SEC. 2. The heading of Article 1 (commencing with Section
line 16 2835) is added to Chapter 7.7 of Part 2 of Division 1 of the Public
line 17 Utilities Code, to read:
line 18
line 19 Article 1. Procurement of Energy Storage Systems
line 20
line 21 SEC. 3. Section 2835 of the Public Utilities Code is amended
line 22 to read:
line 23 2835. For purposes of this article, the following terms have
line 24 the following meanings:
line 25 (a)(1)Energy storage system means commercially available
line 26 technology that is capable of absorbing energy, storing it for a
line 27 period of time, and thereafter dispatching the energy. An energy
line 28 storage system may have any of the characteristics in paragraph
line 29 (2), shall accomplish one of the purposes in paragraph (3), and
line 30 shall meet at least one of the characteristics in paragraph (4).
line 31 (2)An energy storage system may have any of the following
line 32 characteristics:
line 33 (A)Be either centralized or distributed.
line 34 (B)Be either owned by a load-serving entity or local publicly
line 35 owned electric utility, a customer of a load-serving entity or local
line 36 publicly owned electric utility, or a third party, or is jointly owned
line 37 by two or more of the above.
line 38 (3)An energy storage system shall be cost effective and either
line 39 reduce emissions of greenhouse gases, reduce demand for peak
line 40 electrical generation, defer or substitute for an investment in

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line 1 generation, transmission, or distribution assets, or improve the

line 2 reliable operation of the electrical transmission or distribution grid.
line 3 (4)An energy storage system shall do one or more of the
line 4 following:
line 5 (A)Use mechanical, chemical, or thermal processes to store
line 6 energy that was generated at one time for use at a later time.
line 7 (B)Store thermal energy for direct use for heating or cooling
line 8 at a later time in a manner that avoids the need to use electricity
line 9 at that later time.
line 10 (C)Use mechanical, chemical, or thermal processes to store
line 11 energy generated from renewable resources for use at a later time.
line 12 (D)Use mechanical, chemical, or thermal processes to store
line 13 energy generated from mechanical processes that would otherwise
line 14 be wasted for delivery at a later time.
line 15 (b)Load-serving entity has the same meaning as defined in
line 16 Section 380.
line 17 (c)New means, in reference to an energy storage system, a
line 18 system that is installed and first becomes operational after January
line 19 1, 2010.
line 20 (d)Offpeak means, in reference to electrical demand, a period
line 21 that is not within a peak demand period.
line 22 (e)Peak demand period means a period of high daily, weekly,
line 23 or seasonal demand for electricity. For purposes of this chapter,
line 24 the peak demand period for a load-serving entity shall be
line 25 determined, or approved, by the commission and shall be
line 26 determined, or approved, for a local publicly owned electric utility,
line 27 by its governing body.
line 28 (f)Procure and procurement means, in reference to the
line 29 procurement of an energy storage system, to acquire by ownership
line 30 or by a contractual right to use the energy from, or the capacity
line 31 of, including ancillary services, an energy storage system owned
line 32 by a load-serving entity, local publicly owned electric utility,
line 33 customer, or third party. Nothing in this chapter, and no action by
line 34 the commission, shall discourage or disadvantage development
line 35 and ownership of an energy storage system by an electrical
line 36 corporation.
line 37 SEC. 4. Article 2 (commencing with Section 2839.50) is added
line 38 to Chapter 7.7 of Part 2 of Division 1 of the Public Utilities Code,
line 39 to read:

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line 1 Article 2. Energy Storage Initiative

line 2
line 3 2839.50. (a)The Legislature finds and declares all of the
line 4 following:
line 5 (1)The electrical system is evolving from a model dominated
line 6 by centralized powerplants and long distance transmission of
line 7 electricity toward a model focused on local energy sources located
line 8 close to customers of electrical load.
line 9 (2)A decentralized electrical system with distributed storage
line 10 can create greater energy independence and energy security by
line 11 providing for increased resiliency of the power supply and
line 12 smoother integration of renewable energy.
line 13 (3)Locating power supply equipment near the consumption of
line 14 electricity reduces losses associated with the long-distance
line 15 transmission of electricity.
line 16 (4)Empowering customers to take more active roles in the
line 17 states electrical system leverages private capital, protects
line 18 customers from rising energy costs, and promotes customer
line 19 understanding and engagement.
line 20 (5)Installation of energy storage systems on a mass scale is
line 21 likely to enable the integration of renewable energy sufficient to
line 22 meet the states greenhouse gas emissions reduction goals.
line 23 (6)A mass market for energy storage systems would create
line 24 benefits for local economies and the state economy.
line 25 (7)California is a worldwide leader in the development of
line 26 energy storage systems and advanced management of the electrical
line 27 grid, but the market is so small that this leadership position is not
line 28 firm.
line 29 (8)Growing demand for clean energy technologies will create
line 30 jobs in California.
line 31 (9)Prioritizing the deployment of storage technologies in
line 32 low-income and disadvantaged communities will help increase
line 33 access to clean, renewable energy for all Californians, and will
line34 provide local economic development and employment
line 35 opportunities.
line 36 (b)It is the intent of the Legislature to do all of the following:
line 37 (1)Make energy storage systems a mainstream technology that
line 38 enables utility customers to help reduce variation in electricity
line 39 consumption in local circuits of the electricity distribution system
line 40 and the statewide electrical system.

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line 1 (2)Create a marketplace for energy services that harnesses

line 2 innovation stimulated by competition and that compensates
line 3 distributed energy resources for the electrical attributes that those
line 4 resources can provide to the electrical system.
line 5 (3)Achieve market transformation for energy storage systems.
line 6 Market transformation would enable advanced technology energy
line 7 companies and associated entities to achieve the scale and
line 8 experience necessary to offer solutions at prices that are cost
line 9 effective for customers to adopt to help address time-varying
line 10 energy needs of the electrical system.
line 11 (4)Use customer-sited energy storage systems as a primary
line 12 strategy to meet the reduction targets for the emissions of
line 13 greenhouse gases established by the California Global Warming
line 14 Solutions Act of 2006 (Division 25.5 (commencing with 38500)
line 15 of the Health and Safety Code), integrate renewable energy
line 16 resources, and reduce system costs.
line 17 2839.51. For purposes of this article, the following definitions
line 18 apply:
line 19 (a)Customer-sited energy storage system means a device that
line 20 is capable of storing and dispatching energy, that operates in
line 21 parallel with a utility distribution system, and that is connected on
line 22 the customer side of the meter. A customer-sited energy storage
line 23 system includes, but is not limited to, an energy storage system
line 24 that is a component of a multifamily solar photovoltaic system that
line 25 distributes solar credits to tenant meters located at the same
line 26 property through virtual net metering.
line 27 (b)Disadvantaged community means either of the following:
line 28 (1)A disadvantaged community identified pursuant to Section
line 29 39711 of the Health and Safety Code.
line 30 (2)The top quartile of census tract as identified by the
line 31 California Communities Environmental Health Screening Tool on
line 32 either a statewide or utility territorywide basis, whichever is
line 33 broader.
line 34 (b)
line 35 (c)Dispatch capable means having the communication
line 36 capabilities to accept and execute remote or centralized dispatch
line 37 commands that cause a customer-sited energy storage system to
line 38 charge or discharge the stored electricity.
line 39 (c)Qualified census tract

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line 1 (d)Low-income community means a census tract or equivalent

line 2 geographic area defined by the United States Census Bureau in
line 3 which at least 50 percent of households have an income less than
line 4 60 percent of the area median gross income.
line 5 (d)
line 6 (e)Low-income residential housing means any either of the
line 7 following:
line 8 (1)Residential housing financed with low-income housing tax
line 9 credits, tax-exempt mortgage revenue bonds, general obligation
line 10 bonds, or local, state, or federal loans or grants, and for which the
line 11 rents of the occupants who are lower income households, as defined
line 12 in Section 50079.5 of the Health and Safety Code, do not exceed
line 13 those prescribed by deed restrictions or regulatory agreements
line 14 pursuant to the terms of the financing or financial assistance.
line 15 (2)A residential complex in which at least 20 percent of the
line 16 total units are rented to lower income households, as defined in
line 17 Section 50079.5 of the Health and Safety Code, and the housing
line 18 units targeted for lower income households are already, at the time
line 19 of the funding commitment pursuant to this article, subject to a
line 20 deed restriction or affordability covenant with a public entity that
line 21 ensures that the units will be available at an affordable housing
line 22 cost meeting the requirements of Section 50052.5 of the Health
line 23 and Safety Code, or at an affordable rent meeting the requirements
line 24 of Section 50053 of the Health and Safety Code.
line 25 (3)Residential housing occupied by ratepayers participating in
line 26 a low-income energy efficiency program approved and supervised
line 27 by the commission and who do either of the following:
line 28 (A)Occupy a single-family home.
line 29 (B)Occupy at least 50 percent of all units in a multifamily
line 30 dwelling structure.
line 31 (4)Low-income residential housing as defined in Section 2852,
line 32 including low-income residential housing with installations that
line 33 offset electricity usage by low-income tenants.
line 34 (e)Disadvantaged community means either of the following:
line 35 (1)A disadvantaged community identified pursuant to Section
line 36 39711 of the Health and Safety Code.
line 37 (2)A qualified census tract.
line 38 (1)A multifamily residential building of at least two rental
line 39 housing units that is operated to provide deed-restricted
line 40 low-income residential housing, as described in clause (i) of

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line 1 subparagraph (A) of paragraph (3) of subdivision (a) of Section

line 2 2852 and that meets one or both of the following conditions:
line 3 (A)The property is located in a disadvantaged community or
line 4 low-income community.
line 5 (B)At least 80 percent of the households living in the building
line 6 have incomes at or below 60 percent of the area median income,
line 7 as defined in subdivision (f) of Section 50052.5 of the Health and
line 8 Safety Code.
line 9 (2)An individual low-income residence, as described in
line 10 subparagraph (C) of paragraph (3) of subdivision (a) of Section
line 11 2852.
line 12 2839.52. (a)To achieve the intent specified in subdivision (b)
line 13 of Section 2839.50, the commission, on or before December 1,
line 14 2018, shall establish the Energy Storage Initiative to provide
line 15 rebates to customers of electrical corporations for the installation
line 16 customer-sited energy storage systems that are dispatch capable.
line 17 The rebate incentive levels shall decline to zero as market
line 18 penetration increases.
line 19 (b)(1)The commission shall conduct a proceeding to determine
line 20 the annual amount to be collected by electrical corporations for
line 21 the Energy Storage Initiative in each calendar year from 2018
line 22 January 1, 2018, through December 31, 2027.
line 23 (2)The commission shall establish the annual amount described
line 24 in paragraph (1) at an amount the commission determines necessary
line 25 to achieve the intent specified in subdivision (b) of Section
line 26 2839.50, but that is no less than the annual amount allocated for
line 27 energy storage systems pursuant to the commissions Decision
line 28 16-06-055 implementing Section 379.6. 379.6 and no more than
line 29 the maximum amount authorized for energy storage pursuant to
line 30 the commissions Decision 17-04-017 implementing paragraph
line 31 (2) of subdivision (a) of Section 379.6.
line 32 (3)The costs of the Energy Storage Initiative shall not be
line 33 recovered from customers participating in the California Alternate
line 34 Rates for Energy (CARE) program.
line 35 (c)Eligibility for incentives under the Energy Storage Initiative
line 36 shall be limited to customer-sited energy storage systems that the
line 37 commission determines safely utilize the existing transmission
line 38 and distribution system.

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line 1 (d)Up to 25 (1)A minimum of 30 percent of the amount

line 2 collected shall be reserved for any both of the following: following
line 3 collectively:
line 4 (1)
line 5 (A)Energy storage systems in low-income residential housing.
line 6 (2)
line 7 (B)Energy storage systems on properties located in
line8 disadvantaged communities. communities or low-income
line 9 communities that are owned by a small business, local or state
line10 government agency, education institution, or nonprofit
line 11 organization.
line 12 (3)Recruiting,
line 13 (2)Projects funded with moneys reserved pursuant to paragraph
line 14 (1) shall include job training and workforce development, which
line 15 may include recruiting, providing job training, developing
line 16 transferable skills, and providing employment opportunities in the
line 17 energy storage sector of the economy for residents of low-income
line 18 and disadvantaged communities. economy. The commission shall
line 19 develop a policy to improve coordination with existing workforce
line 20 development programs and to provide preference for programs
line 21 for hiring and training local residents.
line 22 (e)In administering the Energy Storage Initiative, the
line 23 commission shall provide do both of the following:
line 24 (1)Provide an additional incentive of 20 percent from existing
line 25 program funds for the installation of eligible energy storage
line 26 systems manufactured in California.
line 27 (2)Provide an enhanced incentive level for installations of
line 28 eligible energy storage systems funded with moneys reserved
line 29 pursuant to subdivision (d). The commission shall also determine
line 30 whether additional incentives are needed to ensure an equitable
line 31 distribution of incentives among projects eligible to be funded with
line 32 moneys reserved pursuant to subdivision (d).
line 33 (f)The commission shall ensure that projects developed under
line 34 funded with moneys reserved pursuant to subdivision (d) are
line 35 offered technical assistance and information to secure incentives
line 36 for other energy programs the projects may qualify for.
line 37 (g)The commission shall ensure that incentives provided under
line 38 the Energy Storage Initiative are available for energy storage
line 39 systems that are components of the renewable systems approved
line 40 pursuant to the Multifamily Affordable Housing Solar Roofs

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line 1 Program (Chapter 9.5 (commencing with Section 2870)). The

line 2 commission shall establish a streamlined process for making
line 3 reservations under the Energy Storage Initiative for eligible energy
line 4 storage systems concurrent with the solar photovoltaic reservations
line 5 made under the Multifamily Affordable Housing Solar Roofs
line 6 Program. The commission shall establish a funding priority for
line 7 the Energy Storage Initiative that gives preference for projects
line 8 that are eligible for and concurrently apply for incentives under
line 9 the Multifamily Affordable Housing Solar Roofs Program.
line 10 (g)
line 11 (h)A program administrator shall do both of the following:
line 12 (1)Make data regarding participation in the Energy Storage
line 13 Initiative publicly available.
line 14 (2)Provide education, training, and resources to support market
line 15 deployment.
line 16 (i)Upon full implementation of the Energy Storage Initiative
line 17 and after the two years of the operation of the initiative, the
line 18 commission may modify incentive levels and limit eligibility based
line 19 on income levels for residential applicants to ensure market
line 20 transformation for energy storage systems and achieve other goals
line 21 of the initiative. The commission shall rely on actual data from
line 22 the initiative and may also rely on program data from other
line 23 incentive programs, such as the California Solar Initiative or the
line 24 Clean Vehicle Rebate Project, to determine what, if any,
line 25 modifications may be appropriate for residential applicants.
line 26 2839.53. (a)On or before December 1, 2018, the governing
line 27 board of a local publicly owned electric utility with an annual
line 28 electrical demand exceeding 700 gigawatt hours, as determined
line 29 on a three-year average commencing January 1, 2013, more than
line 30 100,000 service connections shall collect an annual amount,
line 31 through December 31, 2027, for an Energy Storage Initiative to
line 32 provide rebates to customers of that utility for the installation of
line 33 customer-sited energy storage systems that are dispatch capable.
line 34 (b)By December 1, 2018, a the local publicly owned electric
line 35 utility shall report the budget for its Energy Storage Initiative to
line 36 the Energy Commission.
line 37 (c)The local publicly owned electric utility shall make available
line 38 publicly data regarding participation in its Energy Storage
line 39 Initiative.

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line 1 (d)An electrical cooperative, as defined in Section 2776, with

line 2 an annual electrical demand exceeding 700 gigawatthours, as
line 3 determined on a three-year average commencing with January 1,
line 4 2013, shall comply with the requirements of this section.
line 5 SEC. 5. No reimbursement is required by this act pursuant to
line 6 Section 6 of Article XIIIB of the California Constitution because
line 7 a local agency or school district has the authority to levy service
line 8 charges, fees, or assessments sufficient to pay for the program or
line 9 level of service mandated by this act or because costs that may be
line 10 incurred by a local agency or school district will be incurred
line 11 because this act creates a new crime or infraction, eliminates a
line 12 crime or infraction, or changes the penalty for a crime or infraction,
line 13 within the meaning of Section 17556 of the Government Code, or
line 14 changes the definition of a crime within the meaning of Section 6
line 15 of Article XIII B of the California Constitution.

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