(a) The commission may establish project and storage facility eligibility guidelines for purposes of this chapter.

(b) Any eligibility guidelines established pursuant to subdivision (a) shall be consistent with both of the following requirements:

(1) “Eligible storage facility” shall include, but not be limited to, an energy storage system that is interconnected to the electrical grid in California or to a California balancing authority.

(2) (A) “Eligible project” shall include, but not be limited to, an eligible storage facility that includes any of the following:

(i) Compressed air or liquid air technologies.

(ii) Flow batteries, advanced chemistry batteries, or mechanical energy storage.

(iii) Thermal storage or aqueous battery systems.

(iv) A hydrogen demonstration project.

(B) “Eligible project” shall not include a pumped storage project or lithium-ion-based storage technology.

(Added by Stats. 2022, Ch. 61, Sec. 5. (AB 205) Effective June 30, 2022.)