A.B. 2868 would require California’s major investor-owned utilities to file applications for programs and investments to accelerate the widespread deployment of customer-sited storage facilities with a useful life of 10 years or more. The programs must be designed to achieve ratepayer benefits, reduce dependence on petroleum, meet air quality standards and reduce greenhouse-gas emissions, and must seek to minimize overall costs and maximize overall benefits. This program would build on California’s existing energy storage mandate.

Under A.B. 2868, the CPUC must first approve programs designed to address commercial, industrial and low-income storage applications, and beginning January 1, 2019, may approve those associated with residential energy storage for customers that enroll in TOU rates. The provisions of the bill would be repealed January 1, 2020, unless extended by statute.