---
title: California Legislature and Governor enact four bills that accelerate energy storage markets
description: California Legislature and Governor enact four bills to accelerate energy storage markets, creating new opportunities in clean energy and reducing interconnection challenges.
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---

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 Jun 20, 2024, 11:48:42 AM

# California Legislature and Governor enact four bills that accelerate energy storage markets

[CESA](https://storagealliance.org/news/author/cesa)

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**PRESS RELEASE**

September 27, 2016

Sacramento, CA – The California Energy Storage Alliance  
applauds the California State Legislature and Governor for signing into law four  
important new bills that directly impact energy storage. Collectively, these bills will grow   
the behind-the-meter and utility-scale energy storage markets, create new clean energy  
jobs, reduce distributed energy resource interconnection challenges, and ensure that   
bulk energy storage is part of California’s renewable energy future. Governor Jerry   
Brown signed the following bills into law on September 26, 2016: 

- **AB 1637 (Low)** – Increases the Self Generation Incentive Program (SGIP) funding   
  by $249 million, sending a clear market signal to industry stakeholders that   
  behind-the-meter energy storage will play a key role in reducing greenhouse gas   
  emissions and supporting the next-generation electric grid. Thanks to the   
  California Public Utilities Commission’s (CPUC) recent SGIP reforms, 75% of the   
  program budget going forward is now reserved for energy storage.
- **AB 2868 (Gatto)** - Requires the CPUC to direct California’s three investor owned   
  utilities (IOUs) to accelerate the deployment of distributed energy storage by   
  filing applications for new programs and investments of up to 500 megawatts.  
  This bill directly increases the market for energy storage in California, as the 500  
  MW is in addition to the 1.325 gigawatt procurement goal that California   
  established in 2013.
- **AB 2861 (Ting)** - Authorizes the CPUC to create an objective, expedited dispute-  
  resolution process for distributed, behind-the-meter energy resources  
  attempting to establish an interconnection to an IOU's electricity distribution   
  network. This bill and resulting dispute resolution process will accelerate and   
  reduce Rule 21 interconnection costs.
- **AB 33 (Quirk)** - Directs the CPUC and California Energy Commission to evaluate   
  and analyze the potential for all types of long duration bulk energy storage, such   
  as pumped hydro, to help integrate renewable generation into the grid. This bill   
  ensures broader consideration of bulk energy storage’s unique capabilities and   
  market roles.

“The leadership demonstrated by Assemblymembers Evan Low, Phil Ting, Bill Quirk, and   
Mike Gatto was instrumental in the development and eventual passage of these   
groundbreaking bills,” said Janice Lin, Executive Director of the California Energy Storage   
Alliance (CESA) and Chair of Energy Storage North America. “CESA is proud to have   
played a key role in these bills, which further enable energy storage to become a valued   
piece of the mainstream energy toolkit, mitigate unwarranted market or   
interconnection barriers, and allow bulk storage technologies to be appreciated as a   
solution to renewables integration.”

[Press Releases](https://storagealliance.org/news/tag/press-releases)

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