Relates to the definition of alternate energy production facilities

BILL NUMBER:S8290

Title of bill

An act to amend the public service law, in relation to the definition of alternate energy production 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 lithium ion energy batteries.

Summary of provisions

Section 1 of the bill would amend Public Service Law (PSL) §2(2-b) would exempt lithium ion energy batteries 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.

Section 2 defines the effective date as immediately

Existing law

PSL §2(13) defines electric corporations subject to the jurisdiction of the Commission. Cogeneration 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 electricity, gas or useful thermal energy.

Legislative history

This is new legislation.

Statement in support

Energy storage resources have the potential to offer a number of valuable benefits to the New York electric grid including improving the economic efficiency of the power system and enhanced integration of renewable technologies. Currently, lithium ion energy batteries storage devices are not excluded from the regulatory structure of the commission on new technologies in order to encourage their development and use in New York State. Yet these battery 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. Such facilities also provide frequency and voltage regulation support to improve the efficiency of the electric grid and, as noted, reduce the need for traditional generation such as load-following boilers.

These facilities 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. Additionally, in May 2009, the New York Battery and Energy Storage Technology Consortium (NY BEST) was created with the ultimate goal of positioning New York as the global leader in energy storage technology. To support NY BEST the state has set aside $25 million to finance the development of energy storage technologies, including battery testing, in New York. While this investment is significant, and the consortium's mission laudable, we cannot achieve these goals without also giving lithium ion batteries the same regulatory advantage as-and place them on equal footing with various other alternative production facilities in New York.

Budget implications

Exemption of these facilities would reduce workload for Commission Staff.

Effective date

This bill would take effect immediately.