CA AB2787

Requires the California Independent System Operator (ISO) to procure one or more long duration bulk energy storage projects with aggregate capacity of 1,000 to 2,000 megawatts by December 31, 2019.

Defines eligible long duration bulk storage projects as having at least 8-hour continuous discharge capability, minimum 40-year useful asset life, at least 500 megawatts capacity, and proven deployment history.

Requires the ISO to develop a methodology for allocating net costs of procured projects to all load-serving entities within the ISO-controlled electrical grid through cost-of-service rates.

Gives preference to projects that offer electrical corporations an option to acquire ownership interests and requires projects using public entity-owned reservoirs to comply with project labor agreement requirements.

Takes effect immediately as an urgency statute and includes federal regulatory approval requirements and cost allocation credits for load-serving entities in future bulk energy storage procurements.