Senate Bill S607

                                BILL NUMBER:S607A

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
batteries flow batteries and capacitors.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Public  Service  Law  (PSL)  §2(2-b)
would exempt batteries, capacitors and flow 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 the thirtieth day after it
shall become law.

EXISTING LAW:
P8L §2(13) defines electric corporations subject to  the  jurisdiction
of  the  Commission. Cogeneration facilities (P8L §2(2-a), small hydro
facilities (P8L §2(2)-c)), and alternate energy production  facilities
(P8L   §2(2-b)  are  specifically  exempted  from  the  definition  of
              

facilities giving rise to an "electric corporation."

P8L §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:
S.8310 of 2009-2010

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, battery and flow battery 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  batteries,  capacitors  and  flow  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 on the thirtieth day after it shall become
law.

                                BILL NUMBER:S607B

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
batteries flow batteries and capacitors.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Public Service Law (PSL) §2(2-b)
would exempt batteries, capacitors and flow 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 the thirtieth day after it
shall become law.

EXISTING LAW:
P8L §2(13) defines electric corporations subject to the jurisdiction
of the Commission. Cogeneration facilities (P8L §2(2-a), small hydro
facilities (P8L §2(2)-c)), and alternate energy production facilities
              

(P8L §2(2-b) are specifically exempted from the definition of
facilities giving rise to an "electric corporation."

P8L §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.

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, battery and flow battery
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 batteries, capacitors and flow batteries the same
regulatory advantage as-and place them on equal footing with various
other alternative production facilities in New York.

LEGISLATIVE HISTORY:
S.8310 of 2009-2010

BUDGET IMPLICATIONS:
Exemption of these facilities would reduce workload for commission
staff.

EFFECTIVE DATE:
This bill would take effect on the thirtieth day after it shall become
law.