S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5190
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2017
                                ___________
 
 Introduced by Sens. GRIFFO, FUNKE -- read twice and ordered printed, and
   when printed to be committed to the Committee on Energy and Telecommu-
   nications
 
 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:
 
   Section  1.  The public service law is amended by adding a new section
 74 to read as follows:
   § 74. ENERGY STORAGE DEPLOYMENT  PROGRAM.  1.  (A)  AS  USED  IN  THIS
 SECTION "QUALIFIED ENERGY STORAGE SYSTEM" SHALL MEAN COMMERCIALLY AVAIL-
 ABLE  TECHNOLOGY  THAT  IS CAPABLE OF ABSORBING ENERGY, STORING IT FOR A
 PERIOD OF TIME, AND THEREAFTER DISPATCHING THE ENERGY. A QUALIFIED ENER-
 GY STORAGE SYSTEM SHALL BE COST-EFFECTIVE AND EITHER  ASSIST  THE  INTE-
 GRATION  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) A QUALIFIED 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.  WITHIN  NINETY  DAYS  OF  THE  EFFECTIVE DATE OF THIS SECTION, THE
 COMMISSION SHALL COMMENCE A PROCEEDING TO ESTABLISH THE  ENERGY  STORAGE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10350-01-7

 S. 5190                             2
 
 DEPLOYMENT  PROGRAM  TO  ENCOURAGE  THE INSTALLATION OF QUALIFIED ENERGY
 STORAGE SYSTEMS. NO LATER THAN JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE
 COMMISSION SHALL MAKE A DETERMINATION  ESTABLISHING  A  TARGET  FOR  THE
 INSTALLATION  OF QUALIFIED ENERGY STORAGE SYSTEMS TO BE ACHIEVED THROUGH
 TWO THOUSAND THIRTY AND PROGRAMS THAT WILL ENABLE THE STATE TO MEET SUCH
 TARGET. THE COMMISSION SHALL CONSULT WITH  THE  NEW  YORK  STATE  ENERGY
 RESEARCH  AND  DEVELOPMENT AUTHORITY AND THE LONG ISLAND POWER AUTHORITY
 IN THE  PREPARATION  OF  SUCH  DETERMINATION.  THE  DETERMINATION  SHALL
 INCLUDE THE FOLLOWING:
   (A) THE CREATION OF THE ENERGY STORAGE DEPLOYMENT PROGRAM TO BE ADMIN-
 ISTERED  BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
 AND THE LONG ISLAND POWER AUTHORITY;
   (B) ESTIMATED ANNUAL EXPENDITURES ASSOCIATED WITH THE PROGRAM FOR EACH
 YEAR COMMENCING WITH CALENDAR YEAR TWO THOUSAND EIGHTEEN AND  CONTINUING
 THROUGH CALENDAR YEAR TWO THOUSAND THIRTY;
   (C) PROGRAM DESIGNS THAT TAKE THE FOLLOWING INTO CONSIDERATION:
   (1)  AVOIDED  OR DEFERRED COSTS ASSOCIATED WITH TRANSMISSION, DISTRIB-
 UTION, AND/OR CAPACITY;
   (2) MINIMIZATION OF PEAK LOAD IN CONSTRAINED AREAS; AND
   (3) SYSTEMS THAT ARE CONNECTED TO CUSTOMER FACILITIES AND SYSTEMS THAT
 ARE DIRECTLY CONNECTED TO TRANSMISSION AND DISTRIBUTION FACILITIES;
   (D) ANNUAL REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
 PROGRAM  TO BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
 SENATE, AND THE SPEAKER OF THE ASSEMBLY; AND
   (E) SUCH OTHER ISSUES DEEMED APPROPRIATE BY THE COMMISSION.
   § 2. Sections 1020-ii, 1020-jj and 1020-kk of the  public  authorities
 law,  as  renumbered  by chapter 388 of the laws 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  DEPLOYMENT  PROGRAM.  THE  AUTHORITY  SHALL
 ENCOURAGE  THE  INSTALLATION  OF QUALIFIED ENERGY STORAGE SYSTEMS IN ITS
 SERVICE TERRITORY THROUGH IMPLEMENTATION OF THE ENERGY  STORAGE  DEPLOY-
 MENT  PROGRAM  AS  SET  FORTH AND DEFINED IN SECTION SEVENTY-FOUR OF THE
 PUBLIC SERVICE LAW.
   § 3. Subdivision 1 of section 1020-s of the public authorities law, as
 amended by section 9 of part A of chapter 173 of the laws  of  2013,  is
 amended to read as follows:
   1.  The  rates,  services  and  practices  relating to the electricity
 generated by facilities owned or operated by the authority shall not  be
 subject to the provisions of the public service law or to regulation by,
 or  the  jurisdiction  of,  the public service commission, except to the
 extent (a) article seven of the public service law applies to the siting
 and operation of a major utility transmission facility as defined there-
 in, (b) article ten of such law applies to the siting  of  a  generating
 facility as defined therein, (c) section eighteen-a of such law provides
 for  assessment  for certain costs, property or operations, [and] (d) to
 the extent that the department  of  public  service  reviews  and  makes
 recommendations with respect to the operations and provision of services
 of,  and  rates  and  budgets  established by, the authority pursuant to
 section three-b of such law, AND (E) THAT SECTION  SEVENTY-FOUR  OF  THE
 PUBLIC  SERVICE  LAW  APPLIES TO QUALIFIED ENERGY STORAGE SYSTEMS WITHIN
 THE AUTHORITY'S JURISDICTION.
   § 4. This act shall take effect immediately.