Pub. Util. Code, § 2838.2

(a) The following definitions apply to this section:

(1) “Distributed energy storage system” means an energy storage system with a useful life of at least 10 years that is connected to the distribution system or is located on the customer side of the meter.

(2) “Energy storage management system” means a system by which an electrical corporation can manage the charging and discharging of the distributed energy storage system in a manner that provides benefits to ratepayers.

(b) The commission, in consultation with the State Air Resources Board and the Energy Commission, shall direct the state’s three largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems to achieve ratepayer benefits, reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases. Programs and investments proposed by the state’s three largest electrical corporations shall seek to minimize overall costs and maximize overall benefits.

(c) (1) The commission may approve, or modify and approve, programs and investments of an electrical corporation in distributed energy storage systems with appropriate energy storage management systems and reasonable mechanisms for cost recovery, if they are consistent with the requirements of this section and do not unreasonably limit or impair the ability of nonutility enterprises to market and deploy energy storage systems. The total capacity of the programs and investments in distributed energy storage systems approved by the commission pursuant to this section shall not exceed 500 megawatts, divided equally among the state’s three largest electrical corporations.

(2) No more than 25 percent of the capacity of distributed energy storage systems approved for programs and investments pursuant to this section shall be provided by behind-the-meter systems.

(3) The capacity authorized pursuant to paragraph (1) is in addition to any investments authorized pursuant to Section 2836.

(d) (1) The commission shall resolve each application filed by an electrical corporation pursuant to this section within 12 months of the date of filing of the completed application.

(2) The commission shall prioritize those programs and investments that provide distributed energy storage systems to public sector and low-income customers.