BILL NUMBER:S8290

TITLE OF BILL:
An act
to amend the public service law, in relation to the definition of
alternate energy production facilities

PURPOSE OF THE BILL:
This bill would encourage the development of new, clean alternative
electric generation technologies by reducing the regulatory burden on
certain lithium ion energy batteries.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Public Service Law (PSL) §2(2-b)
would exempt lithium ion energy batteries with an electric generating
capacity of less than 80 MW, from the definition of facilities giving
rise to an "electric corporation" subject to the jurisdiction of the
Public Service Commission.

Section 2 defines the effective date as immediately

EXISTING LAW:
PSL §2(13) defines electric corporations subject to the jurisdiction
of the Commission. Cogeneration facilities (PSL §2(2-a), small hydro
facilities (PSL §2(2)-c)), and alternate energy production facilities
(PSL §2(2-b) are specifically exempted from the definition of
              

facilities giving rise to an "electric corporation."

PSL §2(2-b) defines an "alternate energy production facility" to
include any solar, wind turbine, waste management resource recovery,
fuel cell, tidal, wave energy and refuse-derived fuel or wood burning
facility with an electric generating capacity of up to 80 MW which
produces electricity, gas or useful thermal energy.

LEGISLATIVE HISTORY:
This is new legislation.

STATEMENT IN SUPPORT:
Energy storage resources have the potential to offer a number of
valuable benefits to the New York electric grid including improving
the economic efficiency of the power system and enhanced integration
of renewable technologies. Currently, lithium ion energy batteries
storage devices are not excluded from the regulatory structure of the
commission on new
technologies in order to encourage their development and use in New
York State. Yet these battery systems allow for use of electricity
generated from renewable sources or produced during off-peak times to
be used during times of higher demand, reducing the need to ramp up
more expensive - and potentially more polluting - generating
facilities to meet peak demand. Such facilities also provide
frequency and voltage regulation support to improve the efficiency of
the electric grid and, as noted, reduce the need for traditional
generation such as load-following boilers.

These facilities can significantly improve the efficiency, of the
State's electric system, allowing for the utilization of clean,


renewable resources that might otherwise not be dispatched.
Additionally, in May 2009, the New York Battery and Energy Storage
Technology Consortium (NY BEST) was created with the ultimate goal of
positioning New York as the global leader in energy storage
technology. To support NY BEST the state has set aside $25 million to
finance the development of energy storage technologies, including
battery testing, in New York. While this investment is significant,
and the consortium's mission laudable, we cannot achieve these goals
without also giving lithium ion batteries the same regulatory
advantage as-and place them on equal footing with various other
alternative production facilities in New York.

BUDGET IMPLICATIONS:
Exemption of these facilities would reduce workload for Commission
Staff.

EFFECTIVE DATE:
This bill would take effect immediately.