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<ns0:Id>20250SB__129599INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Stern</ns0:AuthorText>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Stern</ns0:Name>
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<ns0:Title> An act to add Section 2837.5 to the Public Utilities Code, relating to electricity.</ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
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<ns0:Subject>Energy storage systems: procurement. </ns0:Subject>
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<html:p>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.</html:p>
<html:p>This bill would require the commission, in addition to the requirements described above, on or before January 1, 2030, to consider procurement strategies for the installation of a statewide total of up to 40,000 megawatts of energy storage systems. As part of the procurement strategies considered by the commission, the bill would require the commission to consider appropriate targets, if any, for
load-serving entities to procure viable and cost-effective energy storage systems, to be achieved on or before December 31, 2040. If the commission imposes an energy storage system procurement target on load-serving entities, the bill would authorize each load-serving entity to meet up to 50% of its procurement target through energy storage systems that it owns, that are interconnected at the transmission or distribution level, or that are located on the customer side of the meter, as specified. The bill would require the commission to reconsider procurement strategies and appropriate targets not less than once every 3 years.</html:p>
<html:p>Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because a violation of a commission action implementing the bill’s requirements would be a crime, this bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 2837.5 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>2837.5.</ns0:Num>
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(a)
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(1)
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In addition to the requirements of Sections 2836 and 2838.2, the commission, on or before January 1, 2030, shall consider procurement strategies for the installation of a statewide total of up to 40,000 megawatts of energy storage systems.
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(2)
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As part of the procurement strategies considered by the commission, the commission shall consider appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems to be achieved on or before December 31, 2040, and 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.
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(b)
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The commission shall reconsider procurement strategies and appropriate targets, as described in subdivision (a), not less than once every three years.
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(c)
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This section does not prohibit the commission from evaluating and approving an application for funding or recovery of costs of any ongoing or new development, trialing, and testing of energy storage system projects or technologies outside of a proceeding required by this chapter.
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(d)
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If the commission imposes an energy storage system procurement target on a load-serving entity pursuant to this section, the load-serving entity may meet up to 50 percent of its procurement target through energy storage systems owned by the load-serving entity, interconnected at the transmission or distribution level, or located on the customer side of the meter, and may propose an
energy storage system in its applicable integrated resource plan, but shall make a showing of the energy storage system’s viability and cost-effectiveness in the integrated resource plan. To increase competition, the remaining percentage of procurement targets shall be through third-party agreements that demonstrate cost-effectiveness of third-party ownership.
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<ns0:Num>SEC. 2.</ns0:Num>
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No reimbursement is required by this act pursuant to Section 6 of Article XIII
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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
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B of the California Constitution.
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