a) No later than six months after the date of enactment of this section, [COMMISSION ON PUBLIC UTILITIES] (Commission) shall, together with stakeholders including but not limited to third party suppliers and electric public utilities, conduct an energy storage analysis and submit a written report to the Governor and to the Legislature concerning energy storage needs and opportunities in the State. In conducting this analysis, the Commission shall: 

i) Consider how implementation of energy storage systems may benefit ratepayers by providing emergency back-up power for essential services, offsetting peak loads, and stabilizing the electric distribution system;

ii) Study the types of energy storage technologies currently being implemented in the State and elsewhere;

iii) Consider the benefits and costs to ratepayers, local governments, and electric public utilities associated with the development and implementation of additional energy storage technologies;

iv) Determine the optimal amount of energy storage to be added in the State over the next five years in order to provide the maximum benefit to ratepayers;

v) Determine the optimum points of entry into the electric distribution system for distributed energy resources;

vi) Calculate the needed investment and net savings to the State’s ratepayers of adding the optimal amount of energy storage;

vii) Consider whether implementation of energy storage systems would promote the use of electric vehicles in the State, and the potential impact on renewable energy production in the State;

viii) Consider the need for integration of distributed energy resources into the electric distribution system and how distributed energy resources may be incorporated into the electric distribution system in the most efficient and cost-effective manner, including whether interconnection presents or will present a barrier to leveraging additional energy production and storage, and if so, what is the most efficient and cost-effective manner to address interconnection challenges.

b) In conducting the energy storage analysis required by this section, the Commission shall consult public and private entities, academic experts on energy storage, relevant state and local agencies, and utilities in the State and in other states that have conducted studies concerning, or are implementing technologies for, energy storage and distributed energy resources.

c) The written report shall:

i) Summarize the analysis conducted pursuant to subsection (a) of this section;

ii) Discuss and quantify the potential benefits and costs associated with increasing opportunities for energy storage and distributed energy resources in the State; and

iii) Recommend ways to increase opportunities for energy storage and distributed energy resources in the State, including any recommendations for energy storage targets (including numeric targets and the date by which they should be reached) and financial incentives to aid in the development and implementation of these technologies by public and private entities in the State, including recommendations for how the State can encourage maximum receipt of federal funding into the State and ensure that any state incentives do not duplicate investment that the private sector would already make as a business matter.

d) No later than six months after completion of the report, the Commission shall initiate a proceeding to establish a process and mechanism for achieving the targets recommended in the report, with a goal of a minimum of 3,000 megawatts of statewide energy storage by 2030 and a minimum of 6,000 megawatts of statewide energy storage by 2035. The Commission shall adopt regulations:

i) Establishing biennial targets for the procurement of energy storage systems by electric utilities to meet the goals set forth in this section (d);

ii) Setting forth the points of interconnection on the electric grid for the implementation of energy storage systems;

iii) Establishing that an energy storage system may be owned by electric utilities or any other person;

iv) Establishing requirements for the filing by electric utilities of annual or biennial plans to meet biennial targets for the procurement and implementation of energy storage systems;

v) Prescribing a procedure by which the Commission must, at least once every 3 years, reevaluate the biennial targets for the procurement of energy storage systems to meet the goals set forth in this section (d) by electric utilities;

vi) Establishing a procedure by which an electric utility may obtain a waiver or deferral of the biennial targets for the procurement of energy storage systems if the electric utility is not able to identify energy storage systems that provide benefits to customers of the utility that exceed the costs of energy storage systems;

vii) Requiring the electric utility to include such information as the Commission may require in each plan submitted by the electric utility;

viii) To  the  extent practicable, specifying that a minimum percentage of energy storage projects should deliver clean energy benefits into zones that serve communities underserved by existing electric utility services, including rural areas and low to moderate income consumers, and that energy storage projects be deployed to reduce the usage of  combustion-powered peaking facilities located in or near communities disproportionately impacted by pollutants and other health impacts from such combustion-powered peaking facilities; and

ix) Establishing requirements to subject projects by a public entity, or a third party acting on behalf and for the benefit of a public entity for the procurement of energy storage systems of one or more megawatts to prevailing wage laws.