What's happening
This bill amends the public service law to set new targets and policies for the deployment and procurement of cost-effective energy storage systems in New York.
Why it matters
Establishes clear criteria for energy storage. The bill defines a "qualified energy storage system" as one that is not only technologically capable of storing and dispatching energy, but must also be cost-effective and contribute to important grid and environmental goals like integrating renewable energy, reducing greenhouse gas emissions, and improving grid reliability.
Mandates regular review and adaptation of targets. The Public Service Commission is required to set procurement targets for electric utilities, review these targets at least every three years, and adjust them as necessary, ensuring that New York’s energy storage goals remain responsive to technological advances and changing grid needs.
Requires utilities to demonstrate compliance and plan for reliability. Electric utilities must annually report their progress to state leaders and, by 2023, prove they are meeting storage procurement targets. They are also tasked with prudent planning to ensure reliability, making this a mechanism to hold utilities accountable for both innovation and service quality.
Promotes competitive and flexible procurement. The bill specifies that energy storage procurements should use competitive processes and encourages the commission to consider a range of incentive and policy tools, such as alternative compliance payments and pilot programs, to foster cost-effective deployment. This approach aims to stimulate market competition and innovation while managing costs for ratepayers.
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Who cares
Headline styles
Set Energy Storage Targets
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1611
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
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, 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. Section 74 of the public service law, as amended by chapter 417 of the laws of 2018, is amended to read as follows:
§ 74. Energy storage deployment policy. 1. As used in this section "qualified 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 using mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time. A qualified 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.
2. By December thirty-first, two thousand eighteen, the commission shall, in consultation with the New York state energy research and development authority, the Long Island power authority, and the federally designated electric bulk system operator for New York state, after a hearing held on notice, establish by order, rules and regulations, both a two thousand thirty energy storage goal for the state and a deployment policy to support that goal. The energy storage deployment policy shall assist with and take the following into consideration:
(a) avoided or deferred costs associated with transmission, distribution, and/or generation capacity;
(b) minimization of peak load in constrained areas;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07519-01-9
S. 1611 2
(c) systems that are connected to customer facilities and systems that are directly connected to transmission and distribution facilities;
(d) cost-effectiveness;
(e) the integration of variable-output energy resources;
(f) reducing emissions of greenhouse gases;
(g) reducing demand for peak electrical generation;
(h) improving the reliable operation of the electrical transmission or distribution systems; and
(i) such other issues deemed appropriate by the commission.
3. (a) To the extent that the energy storage deployment policy directs the procurement of qualified energy storage systems to encourage their deployment, such procurements shall be awarded through a competitive process.
(b) On or before July first, two thousand twenty, the commission shall commence a proceeding to determine appropriate targets, if any, for electric corporations to procure viable and cost-effective qualified energy storage systems. Any outcome of this proceeding shall be implemented no later than January first, two thousand twenty-three. In reaching a determination, the commission shall consider a variety of policies to encourage the cost-effective deployment of qualified energy storage systems, including refinement of existing procurement methods to properly value qualified 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 twenty.
(c) After issuing a determination in the qualified energy storage systems proceeding, the commission shall, no less than once every three years, reevaluate the procurement targets.
4. (a) Annual reports on the achievements and effectiveness of the policy shall be submitted to the governor, the temporary president of the senate, and the speaker of the assembly.
(b) No later than January first, two thousand twenty-three, every electric corporation shall submit a report to the commission demonstrating that the electric corporation has complied with the qualified 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. 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, 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 attends 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 corpo- ration 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 La'' to add new L7 1020-LL to reuuire the Long. Island Power Authority to develop energy storage system procurement targets consistent with Public Service Law -f 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 tower arc intermittent sources, only providinc: power when the sun is shining Cr- the wind is blowing, there are chal- lenges to adopting these technologies as the State's primary power sources. Energy storage systems help address the intermittencr.. issue br. storing the energy produced by renewables for use at any tire.
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 hew they use and purchase enGrgy. 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 he 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 invest- ment in conventional assets that sit idle for significant periods of time. Ac 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
2017/18: S.2699 - Energy and Telecommunications
2015-18: 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.