Bill Text: NJ A524 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires electric service providers to integrate energy storage systems into long-term planning process.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A524 Detail]
Download: New_Jersey-2024-A524-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman CHRISTIAN E. BARRANCO
District 25 (Morris and Somerset)
SYNOPSIS
Requires electric service providers to integrate energy storage systems into long-term planning process.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning energy storage systems and supplementing P.L.1999, c.23 (C.48:3-49 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Energy Storage System Procurement Act."
2. a. The Legislature finds and declares that energy storage systems provide potential opportunities to reduce electric distribution and transmission power grid costs, support diversification of energy resources, and enhance electric power grid safety and reliability.
b. The Legislature therefore determines that, for these reasons, it is in the public interest to explore the use of energy storage systems in this State and to integrate into the electric distribution and transmission power grid planning process mechanisms for the procurement of energy storage systems by the State's electric public utilities, basic generation service providers, and electric power suppliers through energy storage system evaluation and procurement methodologies.
3. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Basic generation service provider," "board," "electric power supplier," and "electric public utility" shall have the same meaning as provided in section 3 of P.L.1999, c.23 (C.48:3-51).
"Electric service provider" means a basic generation service provider, an electric power supplier, or an electric public utility.
"Energy storage system" means a commercially available technology that is capable of retaining electrical energy, storing electrical energy for a period of time, and delivering electrical energy after storage by chemical, thermal, mechanical, or other means.
"Grid" means an electric distribution system or electric transmission system operated by an electric public utility.
"Procure" or "procurement" means to acquire by ownership or by a contractual right to use electrical energy from, or the capacity of, an energy storage system.
4. a. No later than 180 days after the completion of the report required pursuant to section 1 of P.L.2018, c.17 (C.48:3-87.8), the board shall adopt rules and regulations providing for mechanisms for the procurement of an energy storage system by an electric service provider as part of the electric distribution and transmission system planning process for an energy storage system; except that the rules and regulations providing for the mechanisms shall not affect any board-approved acquisitions or competitive bidding processes for an energy storage system that existed prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. In adopting the rules and regulations required pursuant to subsection a. of this section, the board shall use its best efforts to create conditions under which the procurement of an energy storage system by an electric service provider shall provide systemic benefits, including:
(1) an increased integration of energy into the distribution and transmission grid of an electric public utility;
(2) an improved reliability of the grid;
(3) a reduction in the need for the increased generation of electricity during periods of peak electric demand; and
(4) the avoidance, reduction, or deferral of investment by an electric service provider.
c. In consideration of all known and measurable benefits and costs to an electric service provider, the board, in adopting rules and regulations pursuant to subsection a. of this section, shall:
(1) establish a mechanism for the inclusion of benefits and costs associated with energy storage systems into the planning conducted by an electric service provider;
(2) require an electric service provider to submit to the board, and allowing an electric service provider to submit to a third party approved by the board, appropriate data and analysis of potential energy storage system acquisitions in an electric service provider's planning processes, including potential interconnection points;
(3) ensure that an energy storage system connected to the grid shall not compromise the security, safety, or reliability of the grid or any part of the grid;
(4) establish that any energy storage system may be owned by an electric service provider or by any other person;
(5) establish requirements for the filing by an electric service provider of an electric storage system acquisition plan containing an analysis of the integration and use of an electric storage system, which shall include the requirement that an energy service provider submit in its acquisition plans any modeling assumption used to assess the costs and benefits of an energy storage system and model contracts for procurement of an energy storage system; and
(6) require an electric service provider to include other information as the board may require in its documentation relating to grid planning.
d. The board shall treat information provided to the board or to an approved third party, pursuant to paragraph (2) of subsection c. of this section, as confidential and ensure that the board and any approved third party manages the information in accordance with any applicable State and federal law concerning customer data and personally identifiable information. If the board finds that a third party has failed to comply with any applicable State or federal law concerning customer data and personally identifiable information, the board may deem that third party ineligible to bid or develop an energy storage system in a subsequent grid resource plan.
5. An energy service provider may file an application with the board for an energy storage system not exceeding 15 megawatts of capacity prior to the board adopting rules and regulations pursuant to subsection a. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
6. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) is intended to prohibit or deter any cost-effective energy storage system deployment, as determined by the board, that existed prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
7. This act shall take effect immediately.
STATEMENT
This bill directs the Board of Public Utilities (BPU) to adopt rules and regulations providing for mechanisms for the procurement of an "energy storage system," as that term is defined in the bill, by a basic generation service provider, an electric power supplier, and electric public utility (electric service provider) as part of the electric distribution and transmission system planning process for an energy storage system; except that the rules and regulations are not to affect any BPU-approved acquisition or competitive bidding process for an energy storage system that existed prior to the effective date of the bill.
In adopting the rules and regulations, the BPU is to use its best efforts to create conditions under which the procurement of an energy storage system by an electric service provider is to provide systemic benefits, including: 1) an increased integration of energy into the distribution and transmission grid of an electric public utility; 2) an improved reliability of the grid; 3) a reduction in the need for the increased generation of electricity during periods of peak electric demand; and 4) the avoidance, reduction, or deferral of investment by an electric service provider. In consideration of all known and measurable benefits and costs to an electric service provider, the BPU rules and regulations are to: 1) establish mechanisms for the inclusion of benefits and costs associated with an energy storage system into the planning conducted by an electric service provider; 2) require an electric service provider to submit to the BPU and any BPU-approved third party, appropriate data and analysis of potential energy storage system acquisition in an electric service provider's planning processes, including potential interconnection points; 3) ensure that an energy storage system connected to the grid is not to compromise the security, safety, or reliability of the grid or any part of the grid; 4) establish that any energy storage system may be owned by an electric service provider or by any other person; 5) establish requirements for the filing by an electric service provider of an acquisition plan containing an analysis of the integration and use of an electric storage system; and 6) require an electric service provider to include other information as the BPU may require in its documentation relating to grid planning.
The bill requires the BPU to treat information provided to it or an approved third party, as confidential and ensure that the BPU and any approved third party manages the information in accordance with any applicable State and federal law concerning customer data and personally identifiable information.
The bill allows an energy service provider to file an application with the BPU for an energy storage system not exceeding 15 megawatts of capacity prior to the BPU adopting the rules and regulations required in the bill. The bill exempts from its provisions any cost-effective energy storage system deployment, as determined by the BPU, that existed prior to the effective date of the bill.
