SB314A - Revises provisions relating to energy storage systems. (BDR 58-60)

(Reprinted with amendments adopted on May 23, 2023) SECOND REPRINT S.B. 314 - *SB314_R2* SENATE BILL NO. 314–SENATOR LANGE MARCH 20, 2023 ____________ JOINT SPONSOR: ASSEMBLYMAN CARTER ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions relating to energy storage systems. (BDR 58-60) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to energy; revising a definition relating to certain renewable energy facilities; revising provisions governing the establishment by the Public Utilities Commission of Nevada of biennial targets for the procurement of energy storage systems by certain electric utilities; requiring the Commission to reevaluate the existing biennial targets; eliminating an obsolete provision relating to the establishment of such targets; establishing requirements for the installation of electrochemical energy storage systems; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires the Public Utilities Commission of Nevada to: (1) 1 determine, on or before October 1, 2018, whether it is in the public interest to 2 establish by regulation biennial targets for the procurement of energy storage 3 systems by certain electric utilities; and (2) if the Commission determines that it is 4 in the public interest to establish such targets, adopt regulations establishing 5 biennial targets for the procurement of energy storage systems by certain electric 6 utilities. (NRS 704.795, 704.796) Existing regulations, with certain exceptions, 7 establish progressively larger targets for the procurement of energy storage systems 8 by certain electric utilities, culminating in a requirement that certain electric 9 utilities procure energy storage systems capable of storing not less than 1,000 10 megawatts of electric power by December 31, 2030. Existing regulations also 11 require the Commission to review the existing biennial energy storage targets when 12 it reviews the resource plan submitted by an electric utility and determine whether 13 – 2 – - *SB314_R2* the targets should be altered. (Section 10 of LCB File No. R106-19) Section 1.5 of 14 this bill requires that the Commission establish biennial targets that deliver the 15 greatest benefits to the customers of the electric utility in relation to the costs of the 16 procurement of energy storage systems. Section 6 of this bill repeals the obsolete 17 provision that requires the Commission to determine whether to adopt regulations 18 to establish the biennial targets by October 1, 2018, given that those regulations 19 have been adopted. Section 2 of this bill makes a conforming change relating to the 20 repeal of this obsolete provision. 21 Section 3 of this bill prohibits a person from installing an electrochemical 22 energy storage system unless the person holds a valid license in the classification 23 required to perform such work and, except under certain limited circumstances, for 24 installations occurring on property other than a residential property after July 1, 25 2025, ensures that the installation: (1) is performed by or under the direct 26 supervision of a person who holds a certificate demonstrating the successful 27 completion of the Energy Storage and Microgrid Training and Certification 28 program; and (2) conforms to certain standards regarding the installation of signage 29 in connection with such systems. Section 4 of this bill provides that a violation of 30 the provisions of section 3 is grounds for disciplinary action by the State 31 Contractors’ Board. 32 Section 1 of this bill revises the definition of “facility for the storage of energy 33 from renewable generation.” 34 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 701A.327 is hereby amended to read as 1 follows: 2 701A.327 1. “Facility for the storage of energy from 3 renewable generation” means a facility that is constructed or 4 installed for the [sole] purpose of storing electric energy received 5 from a facility for the generation of electricity from renewable 6 energy for release at a later time, including, without limitation, a 7 facility that is designed to use energy storage technology. 8 2. The term does not include a facility that is located on a 9 residential property. 10 Sec. 1.5. NRS 704.796 is hereby amended to read as follows: 11 704.796 [If, pursuant to NRS 704.795, the Commission 12 determines that it is in the public interest to establish by regulation 13 targets for the procurement of energy storage systems by an electric 14 utility, the] 15 1. The Commission shall adopt regulations: 16 [1.] (a) Establishing biennial targets for the procurement of 17 energy storage systems by [the] an electric utility; 18 [2.] (b) Setting forth the points of interconnection on the 19 electric grid for the implementation of energy storage systems; 20 [3.] (c) Establishing that an energy storage system may be 21 owned by the electric utility or any other person; 22 – 3 – - *SB314_R2* [4.] (d) Establishing requirements for the filing by the electric 1 utility of annual or biennial plans to meet biennial targets for the 2 procurement and implementation of energy storage systems; 3 [5.] (e) Prescribing a procedure by which the Commission must, 4 at least once every 3 years, reevaluate the biennial targets for the 5 procurement of energy storage systems by the electric utility; 6 [6.] (f) Establishing a procedure by which an electric utility 7 may obtain a waiver or deferral of the biennial targets for the 8 procurement of energy storage systems if the electric utility is not 9 able to identify energy storage systems that provide benefits to 10 customers of the utility that exceed the costs of energy storage 11 systems; and 12 [7.] (g) Requiring the electric utility to include such information 13 as the Commission may require in each plan submitted by the 14 electric utility pursuant to NRS 704.741. 15 2. The Commission shall establish biennial targets pursuant 16 to subsection 1 that deliver the greatest benefits to the customers 17 of the electric utility in relation to the costs of the procurement of 18 energy storage systems. In calculating the benefits and costs of the 19 procurement of energy storage systems, the Commission shall 20 consider all known and measurable benefits and costs, including, 21 without limitation: 22 (a) A reduction in the need for the additional generation of 23 electricity by the electric utility during periods of peak demand; 24 (b) A reduction in line losses of the electric utility; 25 (c) The benefits and costs related to ancillary services of the 26 electric utility; 27 (d) Avoided costs to the electric utility for additional 28 generation, transmission and generation capacity; 29 (e) The benefits arising from a reduction of greenhouse gas 30 emissions and the emission of other air pollutants; 31 (f) The benefits and costs to the electric utility related to 32 voltage support; 33 (g) The benefits of diversifying the types of resources used for 34 the generation of electricity; 35 (h) The administrative costs incurred by the electric utility; 36 (i) The cost to the electric utility of the integration of energy 37 storage systems into the transmission and distribution grid; and 38 (j) The cost of the energy storage systems. 39 Sec. 2. NRS 704.797 is hereby amended to read as follows: 40 704.797 1. [If the Commission adopts regulations pursuant to 41 NRS 704.796 to establish biennial targets for the procurement of 42 energy storage systems by an electric utility, to] To meet the targets 43 set forth in [those] the regulations [, the] adopted pursuant to NRS 44 704.796, an electric utility may procure energy storage systems that 45 – 4 – - *SB314_R2* are either centralized or distributed and either owned by the utility 1 or by any other person, as prescribed by regulation of the 2 Commission. 3 2. Electric energy storage systems procured by an electric 4 utility to meet [any] the biennial targets for the procurement of 5 energy storage systems established by regulation pursuant to NRS 6 704.796 must: 7 (a) Reduce peak demand for electricity; 8 (b) Avoid or defer investment by the electric utility in assets for 9 the generation, transmission and distribution of electricity; 10 (c) Improve the reliability of the operation of the transmission or 11 distribution grid; 12 (d) Reduce the emission of greenhouse gases or other air 13 pollutants; or 14 (e) Integrate renewable energy into the electric grid. 15 Sec. 3. Chapter 624 of NRS is hereby amended by adding 16 thereto a new section to read as follows: 17 1. A person shall not install an electrochemical energy 18 storage system in this State unless he or she: 19 (a) Holds a valid license in the classification required to 20 perform such work issued pursuant to this chapter and the 21 regulations of the Board; 22 (b) If the installation is for a property other than a residential 23 property and is performed on or after July 1, 2025, and except as 24 otherwise provided in subsection 2, ensures that the installation: 25 (1) Is performed by or under the direct supervision of a 26 person who holds a certificate demonstrating the successful 27 completion of the Energy Storage and Microgrid Training and 28 Certification program (ESAMTAC); and 29 (2) Conforms to any standards regarding the installation of 30 signage in connection with such systems as contained in the 31 Standard for the Installation of Stationary Energy Storage 32 Systems, NFPA 855, in the form most recently published by the 33 National Fire Protection Association. 34 2. The provisions of paragraph (b) of subsection 1 do not 35 apply to work on an electrochemical energy storage system which 36 is performed under a warranty by an employee of the 37 manufacturer of the electrochemical energy storage system. 38 3. As used in this section: 39 (a) “Electrochemical energy storage system” means a 40 commercially available technology that is capable of receiving 41 electric energy and storing that energy by electrochemical means 42 in order to produce and deliver electricity at a later time. 43 (b) “Residential property” means: 44 – 5 – - *SB314_R2* (1) Improved real estate that consists of not more than four 1 residential units; or 2 (2) A single-family residential unit, including, without 3 limitation, a condominium, townhouse or home within a 4 subdivision, if the unit is sold, leased or otherwise conveyed unit 5 by unit, regardless of whether the unit is part of a larger building 6 or parcel that consists of more than four units. 7 Sec. 4. NRS 624.3016 is hereby amended to read as follows: 8 624.3016 The following acts or omissions, among others, 9 constitute cause for disciplinary action under NRS 624.300: 10 1. Any fraudulent or deceitful act committed in the capacity of 11 a contractor, including, without limitation, misrepresentation or the 12 omission of a material fact. 13 2. A conviction of a violation of NRS 624.730, or a conviction 14 in this State or any other jurisdiction of a felony relating to the 15 practice of a contractor or a crime involving moral turpitude. 16 3. Knowingly making a false statement in or relating to the 17 recording of a notice of lien pursuant to the provisions of 18 NRS 108.226. 19 4. Failure to give a notice required by NRS 108.227, 108.245, 20 108.246 or 624.520. 21 5. Failure to comply with NRS 624.920, 624.930, 624.935 or 22 624.940 or any regulations of the Board governing contracts for 23 work concerning residential pools and spas. 24 6. Failure to comply with NRS 624.860 to 624.875, inclusive, 25 or any regulations of the Board governing contracts for work 26 concerning residential photovoltaic systems used to produce 27 electricity. 28 7. Failure to comply with NRS 624.600. 29 8. Misrepresentation or the omission of a material fact, or the 30 commission of any other fraudulent or deceitful act, to obtain a 31 license. 32 9. Failure to pay an assessment required pursuant to 33 NRS 624.470. 34 10. Failure to file a certified payroll report that is required for a 35 contract for a public work. 36 11. Knowingly submitting false information in an application 37 for qualification or a certified payroll report that is required for a 38 contract for a public work. 39 12. Failure to notify the Board of a conviction or entry of a 40 plea of guilty, guilty but mentally ill or nolo contendere pursuant to 41 NRS 624.266. 42 13. Failure to provide a builder’s warranty as required by NRS 43 624.602 or to respond reasonably to a claim made under a builder’s 44 warranty. 45 – 6 – - *SB314_R2* 14. Failure to comply with section 3 of this act. 1 Sec. 5. NRS 624.800 is hereby amended to read as follows: 2 624.800 For any violation of the provisions of NRS 624.005 to 3 624.750, inclusive, and section 3 of this act that is punishable as a 4 misdemeanor, an indictment must be found, or an information or 5 complaint filed, within 2 years after the commission of the offense. 6 Sec. 6. NRS 704.795 is hereby repealed. 7 Sec. 7. 1. This section and section 1 and 6 of this act become 8 effective upon passage and approval. 9 2. Sections 3, 4 and 5 of this act become effective: 10 (a) Upon passage and approval for the purpose of adopting any 11 regulations and performing any other preparatory administrative 12 tasks that are necessary to carry out the provisions of this act; and 13 (b) On October 1, 2023, for all other purposes. 14 3. Sections 1.5 and 2 of this act become effective on July 1, 15 2024. 16 4. Section 1 of this act expires by limitation on June 30, 2049. 17 TEXT OF REPEALED SECTION 704.795 Commission required to determine whether targets for the procurement of energy storage systems by electric utility is in public interest; required factors to consider; calculation of benefits and costs. 1. On or before October 1, 2018, the Commission shall determine whether it is in the public interest to establish by regulation biennial targets for the procurement of energy storage systems by an electric [Text truncated for display. Full text available on LegiScan.]