(Reprinted with amendments adopted on May 23, 2023)
SECOND REPRINT S.B. 314
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SENATE BILL NO. 314–SENATOR LANGE
MARCH 20, 2023
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JOINT SPONSOR: ASSEMBLYMAN CARTER
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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.
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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
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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
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[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
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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
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(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
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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 utility.
2. In making the determination required by subsection 1, the
Commission shall consider:
(a) Whether the procurement of energy storage systems by an
electric utility will achieve the following purposes:
(1) The integration of renewable energy resources which
generate electricity on an intermittent basis into the transmission and
distribution grid of the electric utility.
(2) The improvement of the reliability of the systems for the
transmission and distribution of electricity.
(3) The increased use of renewable energy resources to
generate electricity.
(4) The reduction of the need for the additional generation of
electricity during periods of peak demand.
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(5) The avoidance or deferral of investment by the electric
utility in generation, transmission and distribution of electricity.
(6) The replacement of ancillary services provided by
facilities using fossil fuels with ancillary services provided by the
use of energy storage systems.
(7) The reduction of greenhouse gas emissions.
(b) The interconnection of energy storage systems at each point
of the electric grid, including, without limitation, in the transmission
and distribution of electricity and at the site of the customer.
3. For the purposes of subsection 1, the Commission shall
determine that the establishment of targets for the procurement of
energy storage systems by an electric utility is in the public interest
if the benefits to customers of the electric utility exceed the costs of
the procurement of energy storage systems. In 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) A reduction in the need for the additional generation of
electricity during periods of peak demand;
(b) A reduction in line losses;
(c) The benefits and costs related to ancillary services;
(d) Avoided costs for additional generation, transmission and
generation capacity;
(e) The benefits arising from a reduction of greenhouse gas
emissions and the emission of other air pollutants;
(f) The benefits and costs related to voltage support;
(g) The benefits of diversifying the types of resources used for
the generation of electricity;
(h) The administrative costs incurred by the electric utility;
(i) The cost to the electric utility of the integration of energy
storage systems into the transmission and distribution grid; and
(j) The cost of energy storage systems.
H