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RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />BOARD OF PUBLIC UTILITIESDATE:SEPTEMBER11, 2017 <br />ITEM NO: 8 <br />SUBJECT:SECOND ENERGY STORAGE PROCUREMENT TARGET ADOPTION UNDER <br />ASSEMBLY BILL 2514 FOR THE CITY OF RIVERSIDE TO ACHIEVE SIX (6) MEGAWATTS <br />OF ENERGY STORAGE BYTHEEND OF YEAR 2020 <br />ISSUE: <br />Recommend that the City Council approve thesecondEnergy Storage Procurement Target adoption under <br />Assembly Bill 2514 for the City of Riverside to achieve six (6) megawatts of energy storage by theend of <br />Year 2020. <br />RECOMMENDATIONS: <br />That the Board of Public Utilitiesrecommendthat the City Council: <br />1.Approve the second Energy Storage Procurement Target adoption under Assembly Bill 2514 for <br />the City to achieve six (6) megawatts of energy storage by the end of Year 2020; and <br />2.AuthorizetheCity Manager, or his designee, tosubmitthe adopted second Energy Storage <br />Procurement Target to the California Energy Commission by October 1, 2017. <br />LEGISLATIVE HISTORY: <br />Assembly Bill (AB) 2514, enacted in 2010, amended by Assembly Bill (AB) 2227in2012, andcodified into <br />Public Utilities Code §§ 2835-2839, mandateseach California electric utility to evaluate the viability and <br />cost-effectiveness of incorporatingenergy storage systems into the electricity grid, and to adopt Energy <br />Storage Procurement Targets(ESPT), as appropriate. Under current law, the governing boardof a <br />Publicly Owned Utilityis required to: <br />1.Open a proceeding on or before March 1, 2012to initiate a process for determiningthe appropriate <br />ESPT, if any,to be achieved by the Publicly Owned Utilityby December 31, 2016, and a second <br />target to be achieved by December 31, 2020; <br />2.Adopt an ESPT, if determined to be appropriate,by no later than October 1, 2014and report the <br />California Energy Commission (CEC) any such ESPT adoption; <br />3.Submit the firstESPT Compliance Report to the CEC to demonstrate compliance with the first <br />ESPTadopted in 2014for procurement throughtheend of Year 2016 by January 1, 2017; <br />4.Reevaluate ESPTdetermination not less than every three yearsor by October 1, 2017, and report <br />to the CEC any modifications to the ESPT as a result of the reevaluation;and <br />Page 16 <br />