Assessing New Electricity Rate Structures to Support LDES systems that operate for 8 or 12 hours
Summary
SCH Number
2026061221
Public Agency
California Energy Commission
Document Title
Assessing New Electricity Rate Structures to Support LDES systems that operate for 8 or 12 hours
Document Type
NOE - Notice of Exemption
Received
Posted
6/26/2026
Document Description
Aspen will assist the California Energy Commission in identifying, validating, and stress-testing revenue pathways and financing structures that can support the deployment of long-duration energy storage (LDES) technologies that provide approximately 8 to 12 hours and longer durations of service to the California grid. This information is critical to allow these LDES systems to received future payments for the services they provide that exceed the current standard of four hours. This knowledge will allow the CEC to work with the CPUC and CAISO to update the energy storage revenue options the State offers for all emerging LDES technologies so these technologies can be integrated into the California Electric Grid of the future.
Contact Information
Name
Michael Gravely
Agency Name
California Energy Commission
Job Title
Senior Engineer
Contact Types
Lead/Public Agency
Address
Phone
Name
Tom Murphy
Agency Name
Aspen Environmental Group
Job Title
Project Manager
Contact Types
Project Applicant
Phone
Email
Location
Coordinates
Cities
Sacramento
Counties
Sacramento
Regions
Northern California
Cross Streets
Folsom Blvd and Watt Ave
Zip
95826
Other Location Info
8801 Folsom Blvd., Suite 275
Sacramento, CA 95826
Notice of Exemption
Exempt Status
Categorical Exemption
Type, Section or Code
Cal. Code Regs., tit. 14, § 15306
Reasons for Exemption
California Code of Regulations, tit. 14, sec. 15306 provides that projects which consist of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource are categorically exempt from CEQA. The project will include reviewing the active energy storage rate structures that are used today in California’s grid management system such as: resource adequacy, spinning reserve, frequency response and other state revenue opportunities for energy storage systems to be paid for their services. Since most of these opportunities are designed for energy storage durations of four hours or less, this research will assess how long duration energy storage systems that provide energy storage durations of 8-12 hours or longer can optimize their revenue potential using the existing suite of options. This data will be collected from the California utilities, CCAs, CPUC, CAISO and other entities knowledgeable on how the system currently works. Next the research team will assess how these existing revenue options could be modified to maximize the use of longer duration energy storage systems and demonstrate how these new longer energy storage duration options could provide a better value to the state as the grid management system meets all the requirements of SB-100 by 2045. The results of this research will be provided to the CPUC, CAISO and other key utility management entities in reports and documents for them to consider as options on how to cost effectively integrate long duration energy storage into the California grid energy management system. This work will not result in a serious or major disturbance to an environmental resource. For this reason, the proposed project will not have a significant effect on the environment and is categorically exempt from CEQA under California Code of Regulations, tit. 14, sec.15306.
The project does not involve impacts on any particularly sensitive environment; will not impact an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies; does not involve any cumulative impacts of successive projects of the same type in the same place that might be considered significant; does not involve unusual circumstances that might have a significant effect on the environment; will not result in damage to scenic resources within a highway officially designated as a state scenic highway; the project site is not included on any list compiled pursuant to Government Code section 65962.5; and the project will not cause a substantial adverse change in the significance of a historical resource. Therefore, none of the exceptions to categorical exemptions listed in CEQA Guidelines section 15300.2 apply to this project, and this project will not have a significant effect on the environment.
Attachments
Notice of Exemption
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