The California Public Utilities Commission (CPUC) has proposed new maintenance and operation standards, as well as heightened emergency response plan oversight, for battery energy storage facilities in California. This proposal was brought forward in response to a significant fire at Vistra Corp.’s 300-MW Moss Landing Energy Storage Facility near Santa Cruz, which raised alarm among local officials. Subsequently, both Vistra and the CPUC’s Safety and Enforcement Division have launched investigations into the incident. As energy storage becomes increasingly integral to California’s energy landscape, the CPUC’s proposal represents a critical step toward addressing existing safety concerns and ensuring the reliability of these facilities.
The Need for Updated Safety Standards
The CPUC’s proposal is designed to introduce new standards aimed at ensuring the safety and reliability of energy storage facilities, recognizing their growing importance in California’s energy framework. The basis for this proposal is a 2022 state law that mandates the CPUC to implement standards for the maintenance and operation of electricity storage facilities, which applies to all facilities owned by electrical corporations or located within the state. This mandate acknowledges the necessity for updated governance as energy storage plays a crucial role in accommodating renewable energy sources and meeting carbon reduction goals.
The proposal seeks to update GO 167, a 2004 order that initially set maintenance and operation standards for electric generating facilities but did not cover battery energy storage systems specifically. At the time when GO 167 was enforced, electrochemical energy storage was not as prevalent, which meant that their unique safety concerns were not considered. The CPUC’s current modifications to GO 167 reflect the technological advancements and increased deployment of battery storage systems, addressing safety and operational issues that have emerged with this growth. Establishing these new standards is vital to adapt to the changing energy landscape and mitigate the risks associated with battery storage.
Rapid Expansion and Safety Incidents
California’s energy storage capacity has experienced exponential growth, increasing from approximately 500 MW in 2019 to about 13,300 MW in 2024. This rapid expansion underscores the urgent need for updated safety standards to ensure the secure operation of these facilities. Unfortunately, the accelerated deployment of energy storage has been marred by several safety incidents. Over the past five years, there have been at least ten notable incidents at energy storage facilities across California. These incidents underscore vulnerabilities and risks inherent in this technology, necessitating robust regulatory intervention.
The recent fire at Moss Landing represents the most destructive of three safety incidents at that facility since 2020. Compounding concerns, a fourth incident occurred at an adjacent facility owned by Pacific Gas & Electric in September 2022. Although the January 16 incident did not result in injuries or fatalities, local officials expressed grave concern, describing the event as a “worst-case scenario” and calling for robust measures to prevent future occurrences. These incidents highlight the critical need for updated safety protocols and rigorous oversight to protect public safety and maintain grid reliability amidst the swift expansion of energy storage capabilities.
Specifics of the Proposed Standards
The CPUC’s modified GO 167 introduces 18 maintenance standards specific to battery energy storage systems. These standards encompass a range of critical areas such as procedures and documentation, spare parts storage and condition, equipment performance and condition, chemistry control, and regulatory compliance. Similarly, the proposal incorporates 28 operating standards, which address comprehensive elements including operation procedures and documentation, engineering and technical support, routine inspections, preparation for emergencies, and emergency grid operations. The detailed nature of these standards aims to provide a thorough framework for ensuring the reliable and safe functioning of battery energy storage facilities.
Furthermore, the proposal mandates owners of battery energy storage facilities to develop emergency response and emergency action plans as stipulated by a separate state law passed in 2023. These plans are crafted to ensure that facilities are adequately prepared to handle emergencies effectively, thereby minimizing risks to public safety and safeguarding the stability of the electric grid. By implementing these specific standards and requiring emergency preparedness, the CPUC aims to preemptively address potential safety hazards and operational issues, enhancing the overall resilience of California’s energy storage infrastructure.
The Importance of Regulatory Oversight
The California Public Utilities Commission (CPUC) has introduced new maintenance and operational standards, along with increased oversight of emergency response plans, for battery energy storage facilities throughout California. This move comes in response to a notable fire at Vistra Corp.’s 300-MW Moss Landing Energy Storage Facility near Santa Cruz, which caused concern among local officials. Following this incident, both Vistra and the CPUC’s Safety and Enforcement Division initiated investigations to determine the cause and prevent future occurrences. Energy storage systems are becoming a crucial part of California’s energy infrastructure, making the CPUC’s proposal a pivotal step in addressing current safety issues and enhancing the reliability of these facilities. This new initiative aims to ensure better management practices, safeguard the environment, and protect public safety as California continues to expand its reliance on energy storage solutions to meet its renewable energy goals.