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

1. (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. (2)

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

      1. (i) Compressed air or liquid air technologies.
      2. (ii) Flow batteries, advanced chemistry batteries, or mechanical energy storage.
      3. (iii) Thermal energy storage or aqueous battery systems.
      4. (iv) A hydrogen demonstration project.
   2. (B) “Eligible project” shall not include a pumped storage project or lithium-ion-based storage technology.