FirstHB1299_S_SA.001 RegularNOT SessionAMENDED Seventy-firstSENATE GeneralCOMMITTEE AssemblyOF STATEREFERENCE OFREPORT COLORADO_______________________________ REENGROSSEDApril This26, Version2017 IncludesChairman Allof AmendmentsCommittee AdoptedDate inCommittee on State, Veterans, & Military Affairs After consideration on the Housemerits, ofthe IntroductionCommittee LLSrecommends NO.the following:

17-0614.02HB17-1299 Duanebe Gallpostponed x4335indefinitely. HOUSE BILL 17-1299 HOUSE SPONSORSHIP Hansen and Coleman, SENATE SPONSORSHIP Donovan and Fenberg, House Committees Senate Committees Transportation & Energy A BILL FOR AN ACT C ONCERNING A TRANSPORTATION LEGISLATION REVIEW COMMITTEE HEARING ON THE INTEGRATION OF ENERGY STORAGE INTO THE ELECTRICRESOURCEPLANNINGPROCESSFORPUBLICUTILITIES .

Bill** Summary*** e** (Note:*** ** *HB1299_S_SA.001*

This summary applies to this bill as introduced and does n notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill m 1 E n 2 passes third reading in the house of introduction, a bill summary that U U 7 applies to the reengrossed version of this bill will be available at O i i H a p http://leg.colorado.gov.) R A r The bill directs the transportation legislation review committee 3 (TLRC) to conduct a hearing during the 2017 interim on the potential economic and social benefits and costs of requiring the public utilities i commission to determine the appropriate targets, if any, for the amount a 1 of viable and cost-effective energy storage systems (e.g., batteries, heat E e 2 U d 1 O 2 i Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

H d p Capital letters indicate new material to be added to existing statute.

d A Dashes through the words indicate deletions from existing statute.

e A sinks, pumped storage hydroelectric systems) that an electric utility subject to Colorado's renewable energystandard should incorporate into its electric resource acquisition plans.

The hearing must take place on or before December 1, 2017.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.

In Colorado Revised Statutes, add 43-2-145.8 as follows:

43-2-145.8.

Transportation legislation review committee - inclusion of energy storage systems in utility resource planning - legislative declaration - definitions - hearing - repeal.

(1) (a) T GENERAL ASSEMBLY FINDS AND DETERMINES THAT:

(I) EXPANDING THE USE OF ENERGY STORAGE SYSTEMS MAY ASSISTELECTRICUTILITIESINIMPROVINGTHERELIABILITYANDSECURITY OF SERVICE;

(II) ADITIONAL ENERGY STORAGE SYSTEMS MAY OPTIMIZE THE USE OF VARIABLE , INTERMITTENT, AND OFF-PEAK ELECTRICAL GENERATIONFROMSOURCESSUCHASHYDROELECTRIC ,WIND,ANDSOLAR ENERGY ;

(III) XPANDED USE OF ENERGY STORAGE SYSTEMS MAY REDUCE COSTS TO RATEPAYERS BY AVOIDING OR DEFERRING THE NEED FOR NEW PEAKINGPOWERPLANTSANDAVOIDINGORDEFERRINGUPGRADESTOTHE DISTRIBUTION AND TRANSMISSION SYSTEM AND EXPANSION OF THE ELECTRICAL GRID;

(IV) EXPANDED USE OF ENERGY STORAGE SYSTEMS MAY REDUCE THEUSEOFELECTRICITYGENERATEDFROMCOSTLYFUELSTOMEETLOAD REQUIREMENTS ON DAYS WITH HIGH ELECTRICITY DEMAND AND MAY AVOID OR REDUCE THE NEED FOR ADDITIONAL ELECTRIC GENERATION -2- 1299 FACILITIES TO MEET THAT DEMAND , THUS SAVING MONEY FOR RATEPAYERS AND REDUCING EMISSIONS;AND (V) U SE OF ENERGY STORAGE SYSTEMS TO PROVIDE ANCILLARY SERVICES MAY REDUCE COSTS FOR RATEPAYERS.

6 (b) THEREFORE ,THE GENERAL ASSEMBLY DECLARES THAT AN INTERIM HEARING IS APPROPRIATE TO FURTHER INVESTIGATE THE ECONOMIC BENEFITS AND COSTS OF ENERGY STORAGE SYSTEMS.

(2) AS USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "C OMMISSION" MEANS THE COLORADO PUBLIC UTILITIES COMMISSION .

(b) (I) "ENERGY STORAGE SYSTEM " MEANS COMMERCIALLY AVAILABLE TECHNOLOGY THAT IS CAPABLE OF ABSORBING ENERGY , STORING IT FOR A PERIOD OF TI,AND THEREAFTER DISPATCHING THE ENERGY AS DESCRIBED IN THIS SUBSECTIO(2)(b).

(II) A ENERGY STORAGE SYSTEM :

(A) M AY BE EITHER CENTRALIZED OR DISTRIBUTED AND MAY BE OWNEDBYAQUALIFYINGRETAILUTILITY ,ACUSTOMEROFAQUALIFYING RETAIL UTILIT,A THIRD PARTY,OR JOINTLY BY TWO OR MORE OF THESE ENTITIES;AND (B) M UST USE MECHANICALCHEMICAL ,ORTHERMALPROCESSES TO STORE ENERGY THAT WAS GENERATED AT ONE TIME FOR USE AT A LATER TIME;STORE THERMAL ENERGY FOR DIRECT USE FOR HEATING OR COOLING AT A LATER TIME IN A MANNER THAT AVOIDS THE NEED TO USE ELECTRICITY AT THAT LATER TIME;

USE MECHANICAL ,CHEMICAL ,OR THERMAL PROCESSES TO STORE ENERGY GENERATED FROM RENEWABLE -3- 1299 RESOURCES FOR USE AT A LATER TIM;OR USE MECHANICAL ,CHEMICAL , OR THERMAL PROCESSES TO STORE ENERGY GENERATED FROM MECHANICAL PROCESSES THAT WOULD OTHERWISE BE WASTED FOR DELIVERY AT A LATER TIME.

6 (c) "QUALIFYING RETAIL UTILIT"HAS THE MEANING SET FORTH IN SECTION40-2-124 (1).

(3) (a) N OR BEFORED ECEMBER 1,2017, THE TRANSPORTATION LEGISLATION REVIEW COMMITTEE SHALL HOLD A HEARING ON THE POTENTIAL ECONOMIC BENEFITS AND COSTS OF ENERGY STORAGE SYSTEMS .

(b) (I) HE TRANSPORTATION LEGISLATION REVIEW COMMITTEE SHALL INVITE MEMBERS OF THE COMMISSION OR THE COMMISSION 'S DESIGNEE , REPRESENTATIVES OF COLORADO ELECTRIC SERVICE PROVIDERS ,AND INTERESTED MEMBERS OF THE PUBLIC TO THE HEARING TO ENGAGE IN A PANEL DISCUSSION OF THE ISSUES SET FORTH IN SUBSECTION (3)(a)OF THIS SECTIO.

(II) IN ADDITION TO ALLOWING PUBLIC TESTIMONY AT THE HEARING ,THETRANSPORTATIONLEGISLATIONREVIEWCOMMITTEESHALL ACCEPT WRITTEN QUESTIONS SUBMITTED BY MEMBERS OF THE PUBLIC TO BE ASKED OF THE PANEL MEMBERS BY THE CHAIR OF THE COMMITTEE OR THE CHAIR'S DESIGNEE AT THE HEARIN.

HE CHAIR MAY DETERMINE :

(A) T HE NUMBER OF SUBMITTED WRITTEN QUESTIONS ASKED OF THE PANEL ;AND (B) THE ORDER IN WHICH THE APPROVED SUBMITTED QUESTIONS WILL BE ASKED OF THE PANE.

(4) THIS SECTION IS REPEALE,EFFECTIVEJULY 1, 2018.

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Act subject to petition - effective date.

This act takes effect at 12:01 a.m.

on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(August 9, 2017, if adjournment sine die is on May 10, 2017);

except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2018 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

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