SB 328 — Revises provisions relating to energy storage systems. (BDR 58-658)

(Reprinted with amendments adopted on MayApril 19, 2021) SECONDFIRST REPRINT S.B.

328 SSENATE ENATEBILL BN ILLN O.

328–SENATOR LLANGE ANGE M ARCH 22, 2021 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions relating to energy storage systems.

establishing qualifications for persons who install electrochemical energy storage systems;

revisingrequiring provisions governing the establishment by the Public Utilities Commission of Nevada ofto reevaluate the existing biennial targets for the procurement of energy storage systems by certain electric utilities;

requiring the Commission to reevaluate the existing biennial targets;

(NRS 704.795, 704.796) Existing regulations, with certain exceptions, establishby progressivelycertain largerelectric targetsutilities, forculminating thein procurementa ofrequirement energythat storagecertain systemselectricems utilities procure energy storage systems capable of storing not less than 1,000ic1,000 megawatts of electric power by December 31, 2030.

R106-19) Section 37.5 of thisreevaluate billthe requiresexisting thatbiennial targets for the Commissionprocurement establishof biennialenergy targetsstorage thatsystems deliverby thecertain electric utilities in regulations and to make any revisions to the procurementtargets ofwhich the energyCommission storagedetermines systems.to be in the public interest;

Section 7.5 of this bill requires theof Commission, not later than November 1, 2022, to:

(1) reevaluate the existing biennial targets for the procurement of energy storage systems by certain electric - *SB328_R2* – 2 – utilities in regulations and to make any revisions to the targets which the Commission determines to be in the public interest;

Section 9 of this bill removes an obsolete provision that requires the Commission to - *SB328_R1* – 2 – determine whether to adopt regulations to establish the biennial targets by October 1, 2018, given that those regulations have been adopted.

Section 3.53 of this billbilSection makes5 aof conformingthis changebill relatingprohibits toa theperson removalfrom ofinstalling thisan obsoleteenergy provision.storagen.

Sectionsystem 5unless ofthe thisperson billholds prohibits a personvalid fromlicense installingas an electrochemicalelectrical energycontractor storageand, systemfor unlessinstallations theoccurring personon holdsproperty aother valid license in the classification than a residential property after July 1, 2022, ensurescertain thatadditional theprofessional installationqualifications isrelating performedto by or under the directinstallation supervision of aenergy personstorage whosystems. holds a certificate demonstrating the successful completion of the Energy Storage and Microgrid Training and Certification program.

Section 6 of this bill provides that a violation of the provisionsBoard.ions of section 5 is grounds for disciplinary action by the State Contractors’ Board.THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

704.796 [If, pursuant to NRS 704.795, the Commission determines that it is in the public interest to establish by regulation targets for the procurement of energy storage systems by an electric utility, the] 1.The Commission shall adopt regulations:

The1. Commission shall adopt regulations:

[1.] (a) Establishing biennial targets for the procurement of energy storage systems by [the]the an electric utility;

[2.] (b) Setting forth the points of interconnection on the electric grid for the implementation of energy storage systems;

[3.] (c) Establishing that an energy storage system may be owned by the electric utility or any other person;

[4.] (d) Establishing requirements for the filing by the electric utility of annual or biennial plans to meet biennial targets for the procurement and implementation of energy storage systems;

[5.] (e) Prescribing a procedure by which the Commission must, at least once every 3 years, reevaluate the biennial targets for the procurement of energy storage systems by the electric utility;

[6.] (f) Establishing a procedure by which an electric utility may obtain a waiver or deferral of the biennial targets for the procurement of energy storage systems if the electric utility is not able to identify energy storage systems that provide benefits to customers of the utility that exceed the costs of energy storage systems;

and - *SB328_R2* – 3 – [7.] (g) Requiring the electric utility to include such information as the Commission may require in each plan submitted by the electric utility pursuant to NRS 704.741.

TheSetting Commissionforth shall establish biennial targets pursuant to subsection 1 that deliver the greatestpoints benefitsof tointerconnection theon customers of the electric utilitygrid infor relation to the costsimplementation of the procurement of the energy storage systems.systems;

In3. calculating the benefits and costs of the procurement of energy storage systems, the Commission shall consider all known and measurable benefits and costs, including, without limitation:

(a)Establishing Athat reductionan inenergy thestorage needsystem formay thebe additionalowned generation of electricity by the electric utility duringor periodsany ofother peakperson; demand;

(b)4. A reduction in line losses of the electric utility;

(c)Establishing Therequirements benefitsfor andthe costsfiling relatedby tothe ancillaryelectric servicesutility of annual or biennial plans to meet biennial targets for the electricprocurement utility;and implementation of energy storage systems;

(d)5. Avoided costs to the electric utility for additional generation, transmission and generation capacity;

(e)Prescribing Thea benefitsprocedure arisingby fromwhich athe reductionCommission ofmust, greenhouseat gasleast emissionsonce andevery 3 years, reevaluate the emissionbiennial targets for the procurement of otherenergy airstorage pollutants;systems by the electric utility;

(f)6. The benefits and costs to the electric utility related to voltage support;

(g)Establishing Thea benefitsprocedure by which an electric utility may obtain a waiver or deferral of diversifyingthe biennial targets for the typesprocurement of resourcesenergy usedstorage forsystems if the generationelectric utility is not able to identify energy storage systems that provide benefits to customers of electricity;the utility that exceed the costs of energy storage systems;

(h)and The7. administrative costs incurred by the electric utility;

(i)Requiring Thethe costelectric utility to theinclude electricsuch utilityinformation ofas the integrationCommission ofmay energyrequire storagein systemseach intoplan submitted by the transmissionelectric andutility distributionpursuant grid;to NRS 704.741.

and (j) The cost of the energy storage systems.

3.5.

NRS 704.797 is hereby amended to read as follows:

704.797 1.

[If the Commission adopts regulations pursuant to NRS 704.796 to establish biennial targets for the procurement of energy storage systems by an electric utility, to] To meet the targets set forth in [those] the regulations [, the] adopted pursuant to NRS 704.796, an electric utility may procure energy storage systems that are either centralized or distributed and either owned by the utility or by any other person, as prescribed by regulation of the Commission.