S T A T E O F N E W Y O R K
________________________________________________________________________
2699
2017-2018 Regular Sessions
I N S E N A T E
January 17, 2017
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the public service law and the public authorities law,
in relation to energy storage systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service law is amended by adding a new section
74 to read as follows:
§ 74. ENERGY STORAGE SYSTEMS. 1. ENERGY STORAGE SYSTEM DEFINED. (A) AS
USED IN THIS SECTION "ENERGY STORAGE SYSTEM" SHALL MEAN COMMERCIALLY
AVAILABLE TECHNOLOGY THAT IS CAPABLE OF ABSORBING ENERGY, STORING IT FOR
A PERIOD OF TIME, AND THEREAFTER DISPATCHING THE ENERGY. AN ENERGY STOR-
AGE SYSTEM SHALL BE COST EFFECTIVE AND EITHER ASSIST THE INTEGRATION OF
VARIABLE ENERGY RESOURCES, REDUCE EMISSIONS OF GREENHOUSE GASES, REDUCE
DEMAND FOR PEAK ELECTRICAL GENERATION, DEFER OR SUBSTITUTE FOR AN
INVESTMENT IN GENERATION, TRANSMISSION, OR DISTRIBUTION ASSETS, OR
IMPROVE THE RELIABLE OPERATION OF THE ELECTRICAL TRANSMISSION OR
DISTRIBUTION GRID.
(B) AN ENERGY STORAGE SYSTEM SHALL DO ONE OR MORE OF THE FOLLOWING:
(I) USE MECHANICAL, CHEMICAL, OR THERMAL PROCESSES TO STORE ENERGY THAT
WAS GENERATED AT ONE TIME FOR USE AT A LATER TIME; (II) STORE THERMAL
ENERGY FOR DIRECT USE FOR HEATING OR COOLING AT A LATER TIME IN A MANNER
THAT AVOIDS THE NEED TO USE ELECTRICITY AT THAT LATER TIME; (III) USE
MECHANICAL, CHEMICAL, OR THERMAL PROCESSES TO STORE ENERGY GENERATED
FROM RENEWABLE RESOURCES FOR USE AT A LATER TIME; OR (IV) USE MECHAN-
ICAL, CHEMICAL, OR THERMAL PROCESSES TO STORE ENERGY GENERATED FROM
MECHANICAL PROCESSES THAT WOULD OTHERWISE BE WASTED FOR DELIVERY AT A
LATER TIME.
2. PROCUREMENT OF ENERGY STORAGE SYSTEMS BY ELECTRIC CORPORATIONS. ON
OR BEFORE JULY FIRST, TWO THOUSAND EIGHTEEN, THE COMMISSION SHALL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07523-01-7
S. 2699 2
COMMENCE A PROCEEDING TO DETERMINE APPROPRIATE TARGETS, IF ANY, FOR
ELECTRIC CORPORATIONS TO PROCURE VIABLE AND COST-EFFECTIVE ENERGY STOR-
AGE SYSTEMS. ANY OUTCOME OF THIS PROCEEDING SHALL BE IMPLEMENTED NO
LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE. IN REACHING A DETER-
MINATION, THE COMMISSION SHALL CONSIDER A VARIETY OF POLICIES TO ENCOUR-
AGE THE COST-EFFECTIVE DEPLOYMENT OF ENERGY STORAGE SYSTEMS, INCLUDING
REFINEMENT OF EXISTING PROCUREMENT METHODS TO PROPERLY VALUE ENERGY
STORAGE SYSTEMS AND USING ALTERNATIVE COMPLIANCE PAYMENTS TO DEVELOP
PILOT PROGRAMS. THE COMMISSION SHALL ADOPT THE PROCUREMENT TARGETS, IF
DETERMINED TO BE APPROPRIATE, NO LATER THAN DECEMBER THIRTY-FIRST, TWO
THOUSAND EIGHTEEN.
3. SUBSEQUENT EVALUATION. AFTER ISSUING A DETERMINATION IN THE ENERGY
STORAGE SYSTEMS PROCEEDING, THE COMMISSION SHALL, NO LESS THAN ONCE
EVERY THREE YEARS, REEVALUATE THE PROCUREMENT TARGETS.
4. REPORTING AND PLANNING. NO LATER THAN JANUARY FIRST, TWO THOUSAND
TWENTY-ONE, EVERY ELECTRIC CORPORATION SHALL SUBMIT A REPORT TO THE
COMMISSION DEMONSTRATING THAT THE ELECTRIC CORPORATION HAS COMPLIED WITH
THE ENERGY STORAGE SYSTEM PROCUREMENT TARGETS AND POLICIES ADOPTED BY
THE COMMISSION. EACH ELECTRIC CORPORATION SHALL PRUDENTLY PLAN FOR AND
PROCURE RESOURCES THAT ARE ADEQUATE TO MEET ITS PLANNING RESERVE MARGIN
AND PEAK DEMAND AND OPERATING RESERVES, SUFFICIENT TO PROVIDE RELIABLE
ELECTRIC SERVICE TO ITS CUSTOMERS.
§ 2. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
law, as renumbered by chapter 388 of 2011, are renumbered sections
1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added to read
as follows:
§ 1020-II. ENERGY STORAGE SYSTEMS. 1. ENERGY STORAGE SYSTEM DEFINED.
(A) AS USED IN THIS SECTION "ENERGY STORAGE SYSTEM" SHALL MEAN COMMER-
CIALLY AVAILABLE TECHNOLOGY THAT IS CAPABLE OF ABSORBING ENERGY, STORING
IT FOR A PERIOD OF TIME, AND THEREAFTER DISPATCHING THE ENERGY. AN
ENERGY STORAGE SYSTEM SHALL BE COST EFFECTIVE AND EITHER ASSIST THE
INTEGRATION OF VARIABLE ENERGY RESOURCES, REDUCE EMISSIONS OF GREENHOUSE
GASES, REDUCE DEMAND FOR PEAK ELECTRICAL GENERATION, DEFER OR SUBSTITUTE
FOR AN INVESTMENT IN GENERATION, TRANSMISSION, OR DISTRIBUTION ASSETS,
OR IMPROVE THE RELIABLE OPERATION OF THE ELECTRICAL TRANSMISSION OR
DISTRIBUTION GRID.
(B) AN ENERGY STORAGE SYSTEM SHALL DO ONE OR MORE OF THE FOLLOWING:
(I) USE MECHANICAL, CHEMICAL, OR THERMAL PROCESSES TO STORE ENERGY THAT
WAS GENERATED AT ONE TIME FOR USE AT A LATER TIME; (II) STORE THERMAL
ENERGY FOR DIRECT USE FOR HEATING OR COOLING AT A LATER TIME IN A MANNER
THAT AVOIDS THE NEED TO USE ELECTRICITY AT THAT LATER TIME; (III) USE
MECHANICAL, CHEMICAL, OR THERMAL PROCESSES TO STORE ENERGY GENERATED
FROM RENEWABLE RESOURCES FOR USE AT A LATER TIME; OR (IV) USE MECHAN-
ICAL, CHEMICAL, OR THERMAL PROCESSES TO STORE ENERGY GENERATED FROM
MECHANICAL PROCESSES THAT WOULD OTHERWISE BE WASTED FOR DELIVERY AT A
LATER TIME.
2. PROCUREMENT OF ENERGY STORAGE SYSTEMS. ON OR BEFORE JULY FIRST, TWO
THOUSAND EIGHTEEN, THE AUTHORITY SHALL CONDUCT A STUDY TO DETERMINE
POTENTIAL BENEFITS FOR PROCURING VIABLE AND COST-EFFECTIVE ENERGY STOR-
AGE SYSTEMS. THE AUTHORITY SHALL CONSIDER A VARIETY OF POLICIES TO
ENCOURAGE THE COST-EFFECTIVE DEPLOYMENT OF ENERGY STORAGE SYSTEMS,
INCLUDING REFINEMENT OF EXISTING PROCUREMENT METHODS TO PROPERLY VALUE
ENERGY STORAGE SYSTEMS AND USING ALTERNATIVE COMPLIANCE PAYMENTS TO
DEVELOP PILOT PROGRAMS. IF THE STUDY RESULTS IN IDENTIFYING BENEFICIAL
ENERGY STORAGE SYSTEMS, THE AUTHORITY SHALL, CONSISTENT WITH THIS ARTI-
S. 2699 3
CLE AND THE STATE FINANCE LAW, PROCURE SUCH ENERGY STORAGE SYSTEMS, NO
LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN.
3. SUBSEQUENT EVALUATION. AFTER ISSUING A DETERMINATION OF THE ENERGY
STORAGE SYSTEMS STUDY, THE AUTHORITY SHALL, NO LESS THAN ONCE EVERY
THREE YEARS, REEVALUATE THE PROCUREMENT TARGETS AND DETERMINE WHETHER IT
IS APPROPRIATE TO PROCURE ADDITIONAL ENERGY STORAGE SYSTEMS.
§ 3. This act shall take effect immediately.