Chapter 7.4Long-Duration Energy Storage Program

Section § 25640

Explanation

This section defines key terms for a chapter related to energy storage and financial incentives in California. An 'Energy storage system' is defined as in another law section. 'Financial incentive' refers to various forms of funding such as contracts, loans, and rebates. 'Under-resourced community' is also defined by another legal section.

For purposes of this chapter, the following definitions apply:
(a)CA Public Resources Code § 25640(a) “Energy storage system” has the same meaning as defined in Section 2835 of the Public Utilities Code.
(b)CA Public Resources Code § 25640(b) “Financial incentive” includes a contract, grant, loan, rebate, block grant, or other appropriate funding mechanism.
(c)CA Public Resources Code § 25640(c) “Under-resourced community” has the same meaning as defined in Section 71130.
energy storage definition financial incentives contracts grants loans rebates block grants funding mechanisms under-resourced communities Public Utilities Code financial support energy projects community support incentive programs definitions
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)

Section § 25641

Explanation

This law section requires the creation of a Long-Duration Energy Storage Program. The program is meant to offer financial support for energy storage projects that meet specific criteria. These projects must be located at approved facilities, have a power rating of at least one megawatt, and be able to provide continuous electricity for at least eight hours. The goal is to enhance the electrical grid with innovative storage systems that secure the necessary power capacity and grid services.

The commission shall establish and implement the Long-Duration Energy Storage Program to provide financial incentives for eligible projects, located at eligible storage facilities, that have power ratings of at least one megawatt and are capable of reaching a target of at least eight hours of continuous discharge of electricity at that power rating in order to deploy innovative energy storage systems to the electrical grid for purposes of providing critical capacity and grid services.
Long-Duration Energy Storage Program financial incentives eligible projects energy storage systems electrical grid power ratings continuous discharge one megawatt grid services innovative storage systems critical capacity eligible storage facilities eight hours continuous discharge
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)

Section § 25642

Explanation

This law allows a commission to set rules about which energy projects and storage facilities qualify for certain programs. The guidelines should allow facilities like energy storage systems connected to California's grid. Eligible projects can include innovations such as compressed air, advanced batteries, and hydrogen demonstrations but cannot be pumped storage or use lithium-ion batteries.

(a)CA Public Resources Code § 25642(a) The commission may establish project and storage facility eligibility guidelines for purposes of this chapter.
(b)CA Public Resources Code § 25642(b) Any eligibility guidelines established pursuant to subdivision (a) shall be consistent with both of the following requirements:
(1)CA Public Resources Code § 25642(b)(1) “Eligible storage facility” shall include, but not be limited to, an energy storage system that is interconnected to the electrical grid in California or to a California balancing authority.
(2)Copy CA Public Resources Code § 25642(b)(2)
(A)Copy CA Public Resources Code § 25642(b)(2)(A) “Eligible project” shall include, but not be limited to, an eligible storage facility that includes any of the following:
(i)CA Public Resources Code § 25642(b)(2)(A)(i) Compressed air or liquid air technologies.
(ii)CA Public Resources Code § 25642(b)(2)(A)(ii) Flow batteries, advanced chemistry batteries, or mechanical energy storage.
(iii)CA Public Resources Code § 25642(b)(2)(A)(iii) Thermal storage or aqueous battery systems.
(iv)CA Public Resources Code § 25642(b)(2)(A)(iv) A hydrogen demonstration project.
(B)CA Public Resources Code § 25642(b)(2)(A)(B) “Eligible project” shall not include a pumped storage project or lithium-ion-based storage technology.
energy storage eligibility energy grid connection compressed air technology flow batteries advanced chemistry batteries mechanical energy storage thermal storage aqueous battery systems hydrogen demonstration projects pumped storage exclusion lithium-ion exclusion California balancing authority storage facility guidelines eligible projects energy innovation
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)

Section § 25643

Explanation

This section outlines how the commission can implement the Long-Duration Energy Storage Program. They can use financial incentives alongside other methods and provide funds for technical assistance to help with things like outreach to industries and assessing technologies. The commission can create guidelines for this program without following the usual procedural rules.

They can also award funds without competitive bidding if the recipient has previously received government funding through a competitive process, if certain conditions are met, or if it benefits the state. Additionally, they can advance up to 25% of the awarded funds.

In implementing the Long-Duration Energy Storage Program, the commission may do all of the following:
(a)CA Public Resources Code § 25643(a) In addition to any other authorized method of providing moneys to participants in the Long-Duration Energy Storage Program, use financial incentives.
(b)CA Public Resources Code § 25643(b) Award Long-Duration Energy Storage Program moneys for technical assistance, including, but not limited to, providing outreach to eligible industries, identifying promising technologies, assessing market conditions needed to accelerate commercial traction of the technology, assisting with technical review of proposals and deliverables, identifying opportunities that provide significant benefits to the electrical grid, and performing benefits analysis. The commission may contract for, or through interagency agreement obtain, technical, scientific, and administrative services and expertise from one or more entities to support the Long-Duration Energy Storage Program.
(c)CA Public Resources Code § 25643(c) Adopt guidelines or other standards at a business meeting for the Long-Duration Energy Storage Program. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the adoption of the guidelines or other standards adopted by the commission pursuant to this chapter.
(d)Copy CA Public Resources Code § 25643(d)
(1)Copy CA Public Resources Code § 25643(d)(1) Notwithstanding any other law, noncompetitively award Long-Duration Energy Storage Program moneys through an amendment to, or a new agreement with a party to or recipient of, contracts or grants from California governmental entities or a federal agency if the recipient has received funding for the original project through a competitive bid process from a California governmental entity or federal agency and the awarding of those moneys is consistent with the stated goals and criteria of the Long-Duration Energy Storage Program.
(2)CA Public Resources Code § 25643(d)(2) Notwithstanding any other law, noncompetitively award Long-Duration Energy Storage Program moneys to a governmental entity, national laboratory, entity contracted by the federal government to operate a national laboratory, or foundation established to serve the University of California or California State University.
(3)CA Public Resources Code § 25643(d)(3) Notwithstanding any other law, noncompetitively award Long-Duration Energy Storage Program moneys to any entity if the cost to the state is reasonable and the commission makes any of the following determinations:
(A)CA Public Resources Code § 25643(d)(3)(A) The expertise, service, or product is unique.
(B)CA Public Resources Code § 25643(d)(3)(B) A competitive solicitation would frustrate the obtainment of necessary information, goods, or services in a timely manner.
(C)CA Public Resources Code § 25643(d)(3)(C) The moneys to be awarded would fund the next phase of a multiphased project, the multiphased project was funded through competitively awarded agreement, and the entity satisfactorily performed the competitively awarded agreement.
(D)CA Public Resources Code § 25643(d)(3)(D) It is in the best interests of the state to do so.
(E)CA Public Resources Code § 25643(d)(3)(E) The entity will use the moneys as matching funds for federally awarded moneys.
(e)CA Public Resources Code § 25643(e) Notwithstanding any other law, in its discretion, advance up to 25 percent of the Long-Duration Energy Storage Program moneys awarded pursuant to this chapter.
Long-Duration Energy Storage Program financial incentives technical assistance outreach to industries promising technologies market conditions benefits to electrical grid guidelines adoption noncompetitive awards competitive bid process government funding unique expertise matching funds advance payment multiphasic project funding
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)

Section § 25644

Explanation

This law states that when making a commission agreement for the Long-Duration Energy Storage Program, it doesn't have to go through the usual approvals or reviews by the Department of General Services or other state departments. It also doesn't need to follow the usual rules found in the State Contracting Manual, Public Contract Code, or specific contracting requirements for personal services.

Notwithstanding any other law, a commission agreement entered into for purposes of the Long-Duration Energy Storage Program shall not require the review, consent, or approval of the Department of General Services or any other state department or agency and are not required to comply with the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.
Long-Duration Energy Storage Program commission agreement Department of General Services State Contracting Manual Public Contract Code personal services contracting state department approvals government contracting exceptions energy storage contracts regulatory exemptions
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)

Section § 25645

Explanation

This law section outlines guidelines for the commission in California when giving financial incentives for energy projects. The commission prefers projects that strengthen the electrical grid, especially during stressful periods, and those that boost reliability and resilience. Projects that support renewable energy, mitigate climate change, improve air quality, and benefit under-resourced communities are prioritized. Cost reductions and job creation in these communities are also important. Any eligible project should connect to the grid and be commercially operational by 2028.

In providing financial incentives pursuant to this chapter, the commission shall give preference to an eligible project that does one or more of the following:
(a)CA Public Resources Code § 25645(a) Increases the reliability and resiliency of the electrical grid.
(b)CA Public Resources Code § 25645(b) Adds electrical grid services when the electrical grid is stressed or anticipating pending energy challenges.
(c)CA Public Resources Code § 25645(c) Increases the use of renewable energy and reduces the impact of climate change on the electrical grid or on connected facilities or communities, including by improving air quality, reducing emissions of greenhouse gases, or providing under-resourced communities with increased reliability and resiliency.
(d)CA Public Resources Code § 25645(d) Lowers energy costs and provides employment opportunities for residents of under-resourced communities.
(e)CA Public Resources Code § 25645(e) Interconnects to the electrical grid and is commercially operational by 2028.
financial incentives energy projects electrical grid reliability grid resiliency renewable energy climate change impact reduction air quality improvement greenhouse gas emissions reduction under-resourced communities energy cost reduction employment opportunities commercially operational by 2028 grid stress services grid interconnection California energy preferences
(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)