Yesterday, February 14, 2023, the D.C. Circuit issued an order affirming FERC’s order in Broadview Solar, LLC, 174 FERC 61,199 (2021) and its “send-out” approach to determining the net power production capacity of a Qualifying Facility (“QF”). As a brief recap of the history of Broadview, Broadview filed an application for QF certification
On June 30, 2022, California Governor Gavin Newsom signed Assembly Bill 205 (“AB 205”), which, among various other things, expands the siting jurisdiction of the California Energy Commission (“CEC”) to include non-thermal generating facilities, such as solar and wind projects, with a capacity of 50 megawatts (MW) or more. The CEC’s siting jurisdiction was previously…
On May 20, 2022, the California Public Utilities Commission (CPUC or Commission) issued a proposed decision (PD) that would, among other things, adopt Southern California Edison’s (SCE) 24-hour-slice proposal as the new resource adequacy (RA) framework applicable to load-serving entities (LSEs) under the CPUC’s jurisdiction. Generally, the proposal would require each LSE to show that it has enough capacity to meet its specific gross-load profile, including a planning-reserve margin, or PRM, for all 24 hours for the “worst day” of each month. The “worst day” would be defined as the day of the month that has the highest coincident-peak-load forecast. This new RA framework would likely be implemented in 2025, with 2024 serving as a “test year” for the new framework.
The Commission initially began examining potential changes to its RA framework due to significant and ongoing changes in California’s generation-resource mix, with the increasing reliance on variable resources such as solar and wind, and use-limited resources, such as energy storage and demand response, as well as the retirement of older natural gas generation. The Commission solicited proposals for a new RA framework starting in 2020, and in 2021 it tentatively adopted Pacific Gas and Electric’s (PG&E) slice-of-day proposal in decision 21-07-014. The Commission ordered a series of workshops to further develop the proposal, culminating in a workshop report submitted March 1, 2022. During the workshops, two alternate proposals were developed: SCE’s 24-hour-slice proposal, and a two-slice proposal developed by Gridwell Consulting. The parties generally favored one of the two alternate proposals, rather than the PG&E slice-of-day proposal. The selection of SCE’s 24-hour-slice proposal will set the direction for further development of the new RA framework.
Continue Reading The California Public Utilities Commission Issues Proposed Decision on New Resource Adequacy Framework
The California Energy Commission (CEC) has continued its efforts to implement Governor Newsom’s July 30, 2021 Emergency Proclamation, which was intended to free up energy supply to meet demand during extreme heat events and wildfires, and to expedite the deployment of additional generation.
The Emergency Proclamation authorized the CEC, which is responsible for licensing thermal powerplants of 50 megawatts (MW) or more, to also license new, or expansions of, battery storage systems of 20 MW or more that are capable of discharging for at least two hours and will deliver net peak energy by October 31, 2022.
Continue Reading California Energy Commission Adopts Expedited Siting Order for Energy Storage
As the energy storage industry continues on its trajectory of near-exponential growth, in the course of assisting our clients we are seeing a wide variety of battery energy storage system (BESS) offerings in the market, and we don’t always like what we see from a project finance and risk perspective.
Battery system offerings are all…
The California Independent System Operator (CAISO) is accepting stakeholder comments until August 13, 2019 on its new Hybrid Resources Issue Paper, kicking off a stakeholder initiative expected to proceed until April 2020. Initial comments submitted now will help shape the direction of the initiative and potential market changes.
Though not exclusively limited to renewables + storage (the CAISO defines “hybrid” to mean any combination of multiple technologies or fuel types combined into a single resource with a single point of interconnection), the CAISO emphasizes the anticipated impacts of increased storage market penetration, including new operational and forecasting challenges, as a driving force for the initiative. The CAISO has observed that the number of hybrid resource configurations seeking interconnection comprises approximately 41% of the CAISO’s Generator Interconnection Queue’s total capacity.Continue Reading CAISO Seeks Stakeholder Feedback on Hybrid Resource Market Participation
The 2019-2020 California Legislative Session has reached its first deadline. February 22, 2019 marked the deadline by which bills could be introduced for the first half of the Legislative Session. Lawmakers will begin Spring Recess April 12 and reconvene April 22. The last day for bills to be passed out of the house of origin is May 31, 2019.
Below is a list of some of the key bills Stoel Rives’ Energy Team will be monitoring throughout the Legislative Session. We note that some bills do not contain language beyond the “intent of the Legislature.” However, we will continue to monitor these bills in case of substantive amendments. These bills are set forth separately below under the heading “Legislative Intent.”
The majority of the bills introduced this Legislative Session relate in some way to California’s efforts to reduce greenhouse gas emissions and move to cleaner sources of generation, including legislation governing electric vehicles, energy storage, and renewable energy. A number of bills introduced in February also attempt to address the impacts of wildfires, or to reduce wildfire risk.
AB 40 (Ting, D) Zero-emission vehicles: comprehensive strategy.
Status: Introduced December 3, 2018; referred to Committees on Transportation and Natural Resources January 24, 2019.
AB 40 would require by no later than January 1, 2021, the State Air Resources Board to develop a comprehensive strategy to ensure that the sales of new motor vehicles and new light-duty trucks in the state have transitioned fully to zero-emission vehicles, as defined, by 2040, as specified.
Continue Reading Key Energy Related Bills Introduced in the 2019-2020 Legislative Session
Is a co-located storage facility and wind or solar facility considered to be one qualifying facility (“QF”) under the Public Utility Regulatory Policies Act (“PURPA”)? Or multiple QFs? How will the aggregate capacity of such storage plus wind/solar QF(s) be measured? If the storage will only be charged from the co-located…
The New Jersey legislature recently passed a bill (the “Bill”) that would set a goal of reaching 600 megawatts of energy storage capacity by 2021 and 2 gigawatts by 2030. This represents one of the largest energy storage implementation goals in the country and likely signals the coming of a large new market for…
The Federal Energy Regulatory Commission’s (“FERC”) long-awaited Order 845 (Reform of Generator Interconnection Procedures and Agreements) was issued on April 19 after over two years of consideration of the issues. Order 845 is the first grid-wide major reform of FERC’s Generator Interconnection Procedures and Agreements since Order 2003 was issued 15 years ago. Order 845 adopts reforms that are designed to address three goals: (1) improving certainty for interconnection customers, (2) promoting more informed interconnection decisions, and (3) enhancing the interconnection process.
Order 845 revises FERC’s pro forma Large Generator Interconnection Procedures (“LGIP”) and Large Generator Interconnection Agreement (“LGIA”) to recognize the changing landscape of technology and is intended to provide interconnection customers with new opportunities to interconnect their projects faster and more cost-effectively. For example, transmission providers must now allow interconnection customers (at the interconnection customer’s option) to build the needed transmission owner interconnection facilities and stand-alone network upgrades in all cases. Previously, interconnection customers only had this option if the transmission owner could not meet the dates proposed by the interconnection customer. Thus, an interconnection customer has newly granted flexibility in the construction of the transmission owner interconnection facilities and stand-alone network upgrades. If the transmission owner returns a high cost estimate, then the interconnection customer can manage the construction of the transmission owner interconnection facilities. On the other hand, if the transmission owner cost estimate is reasonable, the interconnection customer can choose to leave the construction responsibilities for the transmission owner interconnection facilities and stand-alone network upgrade with the transmission owner. Interconnection customers can now make these decisions based on both timing and cost considerations.Continue Reading Helping the Hook-Up: FERC’s Generator Interconnection Procedures Reform Seeks to Improve Information Flow, Recognizes Changing Technology and Opens Further Opportunities for Storage