The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6571

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                              March 9, 2017
                               ___________

Introduced  by  M.  of  A.  PAULIN,  WALKER,  ENGLEBRIGHT, HUNTER, MOYA,
  BUCHWALD, CAHILL, COLTON, D'URSO, GALEF,  GOTTFRIED,  JAFFEE,  LIFTON,
  LUPARDO,  NIOU,  ORTIZ,  OTIS, QUART, SCHIMMINGER, SIMON, McDONOUGH --
  Multi-Sponsored by -- M.  of A. COOK, MAGEE, THIELE -- read  once  and
  referred to the Committee on Energy

AN  ACT  to amend the public service law and the public authorities law,
  in relation to establishing the energy storage deployment program

  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 DEPLOYMENT  PROGRAM.  1.  (A)  AS  USED  IN  THIS
SECTION "QUALIFIED ENERGY STORAGE SYSTEM" SHALL MEAN COMMERCIALLY AVAIL-
ABLE  TECHNOLOGY  THAT  IS CAPABLE OF ABSORBING ENERGY, STORING IT FOR A
PERIOD OF TIME, AND THEREAFTER DISPATCHING THE ENERGY. A QUALIFIED ENER-
GY STORAGE SYSTEM SHALL BE COST-EFFECTIVE AND EITHER  ASSIST  THE  INTE-
GRATION  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) A QUALIFIED 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  MECHANICAL,  CHEMICAL,  OR  THERMAL PROCESSES TO STORE ENERGY
GENERATED FROM MECHANICAL PROCESSES THAT WOULD OTHERWISE BE  WASTED  FOR
DELIVERY AT A LATER TIME.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD10350-01-7

A. 6571                             2

  2.  WITHIN  NINETY  DAYS  OF  THE  EFFECTIVE DATE OF THIS SECTION, THE
COMMISSION SHALL COMMENCE A PROCEEDING TO ESTABLISH THE  ENERGY  STORAGE
DEPLOYMENT  PROGRAM  TO  ENCOURAGE  THE INSTALLATION OF QUALIFIED ENERGY
STORAGE SYSTEMS. NO LATER THAN JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE
COMMISSION  SHALL  MAKE  A  DETERMINATION  ESTABLISHING A TARGET FOR THE
INSTALLATION OF QUALIFIED ENERGY STORAGE SYSTEMS TO BE ACHIEVED  THROUGH
TWO THOUSAND THIRTY AND PROGRAMS THAT WILL ENABLE THE STATE TO MEET SUCH
TARGET.  THE  COMMISSION  SHALL  CONSULT  WITH THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY AND THE LONG ISLAND  POWER  AUTHORITY
IN  THE  PREPARATION  OF  SUCH  DETERMINATION.  THE  DETERMINATION SHALL
INCLUDE THE FOLLOWING:
  (A) THE CREATION OF THE ENERGY STORAGE DEPLOYMENT PROGRAM TO BE ADMIN-
ISTERED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY
AND THE LONG ISLAND POWER AUTHORITY;
  (B) ESTIMATED ANNUAL EXPENDITURES ASSOCIATED WITH THE PROGRAM FOR EACH
YEAR  COMMENCING WITH CALENDAR YEAR TWO THOUSAND EIGHTEEN AND CONTINUING
THROUGH CALENDAR YEAR TWO THOUSAND THIRTY;
  (C) PROGRAM DESIGNS THAT TAKE THE FOLLOWING INTO CONSIDERATION:
  (1) AVOIDED OR DEFERRED COSTS ASSOCIATED WITH  TRANSMISSION,  DISTRIB-
UTION, AND/OR CAPACITY;
  (2) MINIMIZATION OF PEAK LOAD IN CONSTRAINED AREAS; AND
  (3) SYSTEMS THAT ARE CONNECTED TO CUSTOMER FACILITIES AND SYSTEMS THAT
ARE DIRECTLY CONNECTED TO TRANSMISSION AND DISTRIBUTION FACILITIES;
  (D)  ANNUAL  REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS OF THE
PROGRAM TO BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF  THE
SENATE, AND THE SPEAKER OF THE ASSEMBLY; AND
  (E) SUCH OTHER ISSUES DEEMED APPROPRIATE BY THE COMMISSION.
  §  2.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
law, as renumbered by chapter 388 of the laws 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  DEPLOYMENT  PROGRAM. THE AUTHORITY SHALL
ENCOURAGE THE INSTALLATION OF QUALIFIED ENERGY STORAGE  SYSTEMS  IN  ITS
SERVICE  TERRITORY  THROUGH IMPLEMENTATION OF THE ENERGY STORAGE DEPLOY-
MENT PROGRAM AS SET FORTH AND DEFINED IN  SECTION  SEVENTY-FOUR  OF  THE
PUBLIC SERVICE LAW.
  § 3. Subdivision 1 of section 1020-s of the public authorities law, as
amended  by  section  9 of part A of chapter 173 of the laws of 2013, is
amended to read as follows:
  1. The rates, services  and  practices  relating  to  the  electricity
generated  by facilities owned or operated by the authority shall not be
subject to the provisions of the public service law or to regulation by,
or the jurisdiction of, the public service  commission,  except  to  the
extent (a) article seven of the public service law applies to the siting
and operation of a major utility transmission facility as defined there-
in,  (b)  article  ten of such law applies to the siting of a generating
facility as defined therein, (c) section eighteen-a of such law provides
for assessment for certain costs, property or operations, [and]  (d)  to
the  extent  that  the  department  of  public service reviews and makes
recommendations with respect to the operations and provision of services
of, and rates and budgets established  by,  the  authority  pursuant  to
section  three-b  of  such law, AND (E) THAT SECTION SEVENTY-FOUR OF THE
PUBLIC SERVICE LAW APPLIES TO QUALIFIED ENERGY  STORAGE  SYSTEMS  WITHIN
THE AUTHORITY'S JURISDICTION.
  § 4. This act shall take effect immediately.