What's happening
This bill requires New York to set targets and policies for electric utilities and authorities to procure cost-effective energy storage systems, with regular evaluation and reporting requirements.
Why it matters
Broader adoption of energy storage. could improve grid reliability, help integrate renewable energy sources, and reduce the need for costly new power plants, potentially stabilizing or lowering long-term electricity costs for consumers.
Utilities and public authorities will need to regularly assess and report. on their progress in procuring energy storage, increasing transparency and accountability in how New York’s energy system evolves and ensuring that these efforts remain cost-effective over time.
The bill’s language encourages a range of energy storage technologies. (mechanical, chemical, thermal), which could spur innovation and investment in emerging energy solutions, potentially making New York a leader in the industry.
Climate and environmental impacts may be significant. , as the bill explicitly targets reductions in peak demand and greenhouse gas emissions, supporting the state’s broader climate goals and potentially improving air quality and public health.
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Who cares
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Set Energy Storage Targets
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2699
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law and the public authorities law, in relation to energy storage systems
The People of the State of New York, represented in Senate and Assembly, 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 systems. 1. Energy storage system defined. (a) As used in this section "energy storage system" shall mean commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy. An energy storage system shall be cost effective and either assist the integration 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) An 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.
2. Procurement of energy storage systems by electric corporations. On or before July first, two thousand eighteen, the commission shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07523-01-7
S. 2699 2
commence a proceeding to determine appropriate targets, if any, for electric corporations to procure viable and cost-effective energy storage systems. Any outcome of this proceeding shall be implemented no later than January first, two thousand twenty-one. In reaching a determination, the commission shall consider a variety of policies to encourage the cost-effective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems and using alternative compliance payments to develop pilot programs. The commission shall adopt the procurement targets, if determined to be appropriate, no later than December thirty-first, two thousand eighteen.
3. Subsequent evaluation. After issuing a determination in the energy storage systems proceeding, the commission shall, no less than once every three years, reevaluate the procurement targets.
4. Reporting and planning. No later than January first, two thousand twenty-one, every electric corporation shall submit a report to the commission demonstrating that the electric corporation has complied with the energy storage system procurement targets and policies adopted by the commission. Each electric corporation shall prudently plan for and procure resources that are adequate to meet its planning reserve margin and peak demand and operating reserves, sufficient to provide reliable electric service to its customers.
§ 2. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities law, as renumbered by chapter 388 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 systems. 1. Energy storage system defined. (a) As used in this section "energy storage system" shall mean commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy. An energy storage system shall be cost effective and either assist the integration 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) An 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.
2. Procurement of energy storage systems. On or before July first, two thousand eighteen, the authority shall conduct a study to determine potential benefits for procuring viable and cost-effective energy storage systems. The authority shall consider a variety of policies to encourage the cost-effective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems and using alternative compliance payments to develop pilot programs. If the study results in identifying beneficial energy storage systems, the authority shall, consistent with this arti-
S. 2699 3
cle and the state finance law, procure such energy storage systems, no later than December thirty-first, two thousand eighteen.
3. Subsequent evaluation. After issuing a determination of the energy storage systems study, the authority shall, no less than once every three years, reevaluate the procurement targets and determine whether it is appropriate to procure additional energy storage systems.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law and the public authorities law, in relation to energy storage systems
Purpose
To establish energy storage system procurement targets for electric utility corporations and the Long Island Power Authority
Summary of specific provisions
Section 1 defines "energy storage system"
Section 2 amends the Public Service Law to add a new article to require the Public Service Commission to open a proceeding by July 1, 2018 to determine appropriate targets, if any, for each electric utility corporation to procure viable and cost-effective energy storage systems by December 31, 2021.
The bill requires the Public Service Commission to adopt such energy storage system procurement targets no later than December 31, 2017. The Commission shall reevaluate the procurement targets at least once every three years.
The bill requires electric utility corporations to submit a report no later than January 1, 2021 demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the Public Service Commission.
Section 3 amends the Public Authorities Law to add new § 1020-LL to require the Long Island Power Authority to develop energy storage system procurement targets consistent with Public Service Law § 54.
Justification
New York has set forth an ambitious goal of 50t renewables by 2020. Energy storage systems are a key component to achieving that goal, while providing other benefits to the grid and New York's economy.
Since solar and wind power are intermittent sources, only providing power when the sun is shining or the wind is blowing, there are challenges to adopting these technologies as the State's primary power sources. Energy storage systems help address the intermittency issue by storing the energy produced by renewables for use at any time.
Storage can also provide vital backup power to customers and critical facilities when the grid goes down. When the grid is functioning, it gives customers and businesses additional flexibility to choose how they use and purchase energy. This allows customers and businesses to manage their energy costs now and in the future.
Storage can provide valuable services at the utility and wholesale levels, as well. It can be used to avoid or defer costly investments in generation and transmission assets. Many of these assets are needed to serve the State's growing peak load, which leads to inefficient investment in conventional assets that sit idle for significant periods of time. As estimated in the Department of Public Service's Reforming the Energy Vision (REV) proposal, New York could avoid up to $1.7 billion annually by flattening the top 100 hours of peak load. Storage can play a vital role in more efficiently using existing resources to avoid these costs.
New York's clean energy economy has undergone substantial growth in recent years. The solar industry alone added more than 1,000 jobs to New York's economy in 2015. This legislation will help the energy storage industry build on this success in creating jobs, bringing business to New York, and significantly reducing costs of storage in the future.
Prior legislative history
2015-16: S.7533 - Referred to Energy and Telecommunications
Fiscal implications
None to State
Effective date
This Act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.