BILL NUMBER: S6497A

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the public service law, in relation to establishing a
program for eligible zero emissions energy systems

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill would have the Public Service Commission (PSC) create a program
to foster private sector innovation and investment in "zero emissions
energy systems," in order to meet the targets of the Climate Leadership
and Community Protection Act (CLCPA), Chapter 106 of the Laws of 2019,
while maintaining electric system reliability.

 
SUMMARY OF PROVISIONS:

66-s of the public service law:

Section 1: The bill includes definitions for the following terms:  "zero
emissions energy systems" means systems, other than renewable energy
              

systems, that generate electricity or thermal energy through the use of
technologies that do not increase the concentration of greenhouse gas in
the atmosphere in the process of generating electricity; "renewable
energy systems" and "greenhouse gas" have the meanings as defined within
the CLCPA.

Section 2. Within one year of the bill's effective date, the PSC would
establish a competitive program to attract private sector investment in
a minimum of one gigawatt of zero emissions energy systems. The PSC
would determine, with public input, which technologies would be techni-
cally feasible by 2030 and therefore eligible for the program, in order
to meet the CLCPA's target of having statewide electrical demand system
be zero emissions by 2040. The PSC would start to implement the program
within two years of the bill's effective date.  Zero emissions energy
systems under the program would commence commercial operation by 2030.

Section 3. Consistent with the provisions of the CLCPA, the PSC would be
able to temporarily modify the program, if electric system reliability
would be impeded or if consumer costs increase significantly.

Section 4. Within three years of the bill's effective date, the PSC
would review the program to determine if the target for the deployment
of zero emissions energy systems is being met.

66-t of the public service law:

Section 2. References the definition for "zero emissions energy systems"
provides the commission with establishes and implements section 66-s of
this article, along with the owner of the zero emissions energy system,
it a third party acting on the owner's behalf, as an ongoing agreement
with a public entity that implements section 66-s of this article,
comply with 66-4 of this article and section 224-d of the labor law.

Section 3: The effective date is immediate upon enactment.

 
JUSTIFICATION:

The Climate Action Council, established pursuant to the CLCPA, has
received information from studies on emissions reduction pathways needed
to reach the CLCFA goals, while maintaining reliability and reducing
costs to consumers. All scenarios that achieve carbon neutrality share
'significant progress on: energy efficiency and end-use electrification;
switching to low-carbon fuels; decarbonizing the electricity supply; and
the use of negative emissions measures and carbon capture technologies.

The studies, commissioned by the New York Independent System Operator
and New York State Energy Research and Development Authority (NYSERDA),
indicate that upwards of 20 gigawatts of dispatchable and emissions-free
resources will be needed to balance the electric power system. by 2040
as the economy electrifies and reliance on intermittent renewable and
duration limited resources increases.  Those resources Must be signif-
icant in capacity, able to operate continuously over many hours or days,
and flexible enough to meet rapid, steep ramping needs. The studies
further find that battery storage resources help address shorter dura-
tion variability from renewable resources but, based on current technol-
ogy, do not provide the long duration power generation that is necessary
over seasonal periods of reduced renewable generation.

The CLCPA requires that 70 percent of electricity be renewable by 2030.
The bill is intended ultimately to create a market for the kind of tech-
nologies that will comprise the remaining 30 percent of power generation
technology needed to maintain reliability as progress is made toward
achieving the aoal of a zero emissions power system by 2040.

The language of the CLCPA has created a cloud of investment uncertainty
that this bill would help clear. The CLCPA prohibits power plant owners
from using technologies that are defined to be part of the offsets
program, such as: carbon capture and sequestration; anaerobic digesters,
which would involve renewable natural gas; and biofuels. As part of the
Climate Action Council process, the New York State Department of Envi-
ronmental Conservation (DEC) has interpreted the CLCPA to mean that, as
long as the DEC does not establish an offsets program, these technolo-
gies are available for the use of the generation sector. This bill would
help remove uncertainty and promote the development of a market to
foster the investment needed to meet the CLCPA's goals reliably.

For example, green hydrogen, produced by carbon-free means as required
by the CLCPA, and captured biogas that would otherwise escape into the
atmosphere, can be valuable in the energy mix of a decarbonizing economy
by providing generators with a dispatchable, carbon-free fuel to backup
renewable generation and energy storage. Consistent with the CLCPA's
goals, fostering private sector investment in at least one aigawatt of
electricity generated by zero emissions energy systems by 2030 that can
provide the operating flexibility and longer duration aeneration that
intraday battery storage systems cannot is in the public interest, in
order to develop a market for these resources. This program also could
implement the recommendations of the Climate Action Council for how to
meet the CLCPA's goals.

Under the bill, the PSC could decide to establish the program for "zero
emissions energy systems," in a. manner consistent with NYSERDA's
programs for research, development and demonStration of innovative tech-
nologies to meet the goals of the CLCPA while maintaining reliability.


There is no impact upon, or conflict with, renewable energy and energy
storage technologies, as the definition of zero emissions exempts renew-
able energy systems under the PSC's section-of the CLCPA and those
renewables have their own program with their own funding. Other programs
such as offshore wind and energy storage also have their own goals and
are separately funded. The PSC also could decide whether retrofitting
existing facilities would qualify under the program. The bill would send
a market signal for needed technologies and associated fuels to be
developed in a commercially available and cost-effective way.

The costs of the program are addressed by the language that allows the
PSC to modify the program, if costs become too high. The PSC would
decide program parameters that would be best for the public interest and
reaching the goals of the CLCPA in a cost-effective way. The source of
funding for the program would be decided by the PSC, depending on how
the Commission decides to structure the program. The definition of "zero
emissions energy systems" states that greenhouse gases, which are
defined by the CLCPA to include carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other
air emission that impacts climate change, would not be increased. The
CLCPA also defines "co-pollutants" to mean hazardous air pollutants
produced by greenhouse gas emissions sources. The DEC's Air Toxics
Program already includes requirements for hazardous air pollutants.
Emissions of nitrogen oxides and sulfur dioxide already are being
reduced by emission control technologies that are commercially available
and cost-effective.

New York's power sector has reduced the emission rates of nitrogen
oxides by 92 percent and sulfur dioxide by 99 percent. The electric
generation sector has decreased greenhouse gas emissions by nearly 55
percent, the most of any other sector of the economy. New York State
should become a national. leader in the use. of zero emissions systems,
while maintaining reliability, improving the economies and health of
local communities, and increasing affordability.

 
PRIOR LEGISLATIVE HISTORY:

2021/22: S6497 - REFERRED TO ENERGY AND TELECOMMUNICATIONS REPORTED AND
COMMITTED TO FINANCE

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.