Add §74, Pub Serv L; ren §§1020-ii - 1020-kk to be §§1020-jj - 1020-ll, add §1020-ii, amd §1020-s, Pub Auth L
Establishes the energy storage deployment program to encourage the installation of qualified energy storage systems; relates to commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6571
SPONSOR: Paulin (MS)
TITLE OF BILL: An act to amend the public service law and the public
authorities law, in relation to establishing the energy storage deploy-
To promote the installation of qualified energy storage systems through
the energy storage deployment program.
Section one amends the public service law by adding a new section 74,
"Energy storage deployment program", which: i) defines a qualified ener-
gy storage system as technology that is capable of absorbing energy,
storing it for a period of time, and thereafter dispatching the energy;
ii) specifies that such storage systems can use mechanical, chemical or
thermal processes to store energy that was generated from renewable
resources or through mechanical processes; iii) provides that such stor-
age system can store thermal energy for direct use for heating or cool-
ing at a later time. Additionally, it provides that the Public Service
Commission (PSC) shall establish 2030 targets for the installation of
such systems. In doing so, the Commission will consult with the NYS
Energy Research and Development Authority and with the Long Island Power
Authority. The latter two entities will administer the Energy Storage
Deployment Program starting in 2018, providing: a) estimates for the
annual program expenditures till 2030, b) program designs related to the
deferred or avoided costs and the reduction of peaks, c) performance
reports and anything else the PSC deems appropriate.
Section two provides that sections 1020-ii, 1020-jj and 1020-kk of the
public authorities law are renumbered sections 1020-jj, 1020-kk and
1020-11, and a new section 1020-ii is added. The latter states that the
Authority shall encourage the installation of qualified storage systems
in its service territory, by implementing an energy storage deployment
program as defined in the new section 74 of the public service law.
Section three amends subdivision 1 of section 1020-s of the public
authorities law to add that section 74 of public service law applies to
qualified energy storage systems within the authority's jurisdiction.
Section four provides the effective date.
In an effort to combat climate change, renewable energy sources, such as
solar and wind, are being used more extensively than in the past. This
development is leading to a change in the energy supply and demand
The fact that solar and wind are intermittent has presented significant
challenges. For example, solar produces power primarily during the day.
Conversely, wind is stronger at night, leading to a higher production of
energy at night than in the day.
Energy storage systems can efficiently solve the issues related to the
timing mismatch between energy supply and demand. In fact, by absorbing
and storing energy resources, storage systems are able to reduce demand
for peak hours, boosting the resilience and reliability of the electric
grid. This way, renewable energy can be available continuously, result-
ing in a reduced need for baseload generation.
This legislation defines qualified energy storage systems, and provides
a regulatory framework for the PSC to start the energy storage deploy-
ment program. This will encourage the installation of such systems
throughout New York State, leading to a more efficient and sustainable
use of renewable energy sources.
This act shall take effect immediately.
STATE OF NEW YORK
2017-2018 Regular Sessions
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:
1 Section 1. The public service law is amended by adding a new section
2 74 to read as follows:
3 § 74. Energy storage deployment program. 1. (a) As used in this
4 section "qualified energy storage system" shall mean commercially avail-
5 able technology that is capable of absorbing energy, storing it for a
6 period of time, and thereafter dispatching the energy. A qualified ener-
7 gy storage system shall be cost-effective and either assist the inte-
8 gration of variable energy resources, reduce emissions of greenhouse
9 gases, reduce demand for peak electrical generation, defer or substitute
10 for an investment in generation, transmission, or distribution assets,
11 or improve the reliable operation of the electrical transmission or
12 distribution grid.
13 (b) A qualified energy storage system shall do one or more of the
14 following: (i) use mechanical, chemical, or thermal processes to store
15 energy that was generated at one time for use at a later time; (ii)
16 store thermal energy for direct use for heating or cooling at a later
17 time in a manner that avoids the need to use electricity at that later
18 time; (iii) use mechanical, chemical, or thermal processes to store
19 energy generated from renewable resources for use at a later time; or
20 (iv) use mechanical, chemical, or thermal processes to store energy
21 generated from mechanical processes that would otherwise be wasted for
22 delivery at a later time.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 6571 2
1 2. Within ninety days of the effective date of this section, the
2 commission shall commence a proceeding to establish the energy storage
3 deployment program to encourage the installation of qualified energy
4 storage systems. No later than January first, two thousand eighteen, the
5 commission shall make a determination establishing a target for the
6 installation of qualified energy storage systems to be achieved through
7 two thousand thirty and programs that will enable the state to meet such
8 target. The commission shall consult with the New York state energy
9 research and development authority and the Long Island power authority
10 in the preparation of such determination. The determination shall
11 include the following:
12 (a) The creation of the energy storage deployment program to be admin-
13 istered by the New York state energy research and development authority
14 and the Long Island power authority;
15 (b) Estimated annual expenditures associated with the program for each
16 year commencing with calendar year two thousand eighteen and continuing
17 through calendar year two thousand thirty;
18 (c) Program designs that take the following into consideration:
19 (1) avoided or deferred costs associated with transmission, distrib-
20 ution, and/or capacity;
21 (2) minimization of peak load in constrained areas; and
22 (3) systems that are connected to customer facilities and systems that
23 are directly connected to transmission and distribution facilities;
24 (d) Annual reports on the achievements and effectiveness of the
25 program to be submitted to the governor, the temporary president of the
26 senate, and the speaker of the assembly; and
27 (e) Such other issues deemed appropriate by the commission.
28 § 2. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
29 law, as renumbered by chapter 388 of the laws of 2011, are renumbered
30 sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
31 to read as follows:
32 § 1020-ii. Energy storage deployment program. The authority shall
33 encourage the installation of qualified energy storage systems in its
34 service territory through implementation of the energy storage deploy-
35 ment program as set forth and defined in section seventy-four of the
36 public service law.
37 § 3. Subdivision 1 of section 1020-s of the public authorities law, as
38 amended by section 9 of part A of chapter 173 of the laws of 2013, is
39 amended to read as follows:
40 1. The rates, services and practices relating to the electricity
41 generated by facilities owned or operated by the authority shall not be
42 subject to the provisions of the public service law or to regulation by,
43 or the jurisdiction of, the public service commission, except to the
44 extent (a) article seven of the public service law applies to the siting
45 and operation of a major utility transmission facility as defined there-
46 in, (b) article ten of such law applies to the siting of a generating
47 facility as defined therein, (c) section eighteen-a of such law provides
48 for assessment for certain costs, property or operations, [and] (d) to
49 the extent that the department of public service reviews and makes
50 recommendations with respect to the operations and provision of services
51 of, and rates and budgets established by, the authority pursuant to
52 section three-b of such law, and (e) that section seventy-four of the
53 public service law applies to qualified energy storage systems within
54 the authority's jurisdiction.
55 § 4. This act shall take effect immediately.