Includes a kinetic energy storage device utilizing flywheels or compressed air in the definition of an alternate energy production facility

1 Co-sponsor

• Timothy P. Gordon

BILL NUMBER:A10216

Title of bill

An act to amend the public service law, in relation to the definition of alternate energy facilities

Purpose of the bill: This bill would encourage the development of new, clean alternative electric generation technologies, by reducing the regulatory burden on certain kinetic energy storage devices.

Summary of provisions: Section 1 of the bill would amend Public Service Law (PSL) §2(2-b) to exempt kinetic energy storage devices utilizing flywheels or compressed air, 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 (Commission).

Section 2 of the bill would provide for an immediate effective date.

Existing law:

PSL §2(13) defines electric corporations subject to the jurisdiction of the Commission: Co-generation facilities (PSL §2(2-a)), small hydro facilities (PSL §2(2-c)), and alternate energy production facilities (PSL §2(2-b) are specifically exempted from the definition of facilities giving rise to an "electric corporation."

PSL §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 electric- ity, gas or useful thermal energy.

Legislative history: This is new legislation.

Statement in support: Flywheel energy storage systems rotate a disk at a high speed. The resulting kinetic energy is stored as electricity and can be dispatched to the electric grid at a later time. In compressed air energy storage systems, the compressed air is stored and released later to drive turbines for electricity. These 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.

Exclusion of alternative energy production-facilities from the Commis- sion's regulatory structure reduces the regulatory burden on new tech- nologies, and encouraging their development and use in New York State. Kinetic energy storage devices utilizing flywheels or compressed air have developed to the point that they are now viable options for use as alternate energy production facilities in New York State. These facili- ties 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. And, when charged using renewable energy, the electricity from such facilities would not release green- house gases and other harmful emissions.

Additionally, such facilities can provide frequency and voltage regu- lation support to improve the efficiency of the electric grid and, as noted, reduce the need for traditional generation such as load-following boilers. The proposed amendment would give kinetic energy storage facil- ities the same regulatory advantages as - and place them on an equal footing with - various other alternate energy production facilities in New York.

Budget implications: Exemption of these facilities would reduce work- load for Department Staff, allowing them to redirect their time to core priorities.

Effective date: This bill would take effect immediately.