STATE OF NEW YORK
        ________________________________________________________________________
                                         7318--A
            Cal. No. 46
                    IN SENATE
                                     January 5, 2018
                                       ___________
        Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules -- reported  favora-
          bly from said committee, ordered to a third reading, passed by Senate,
          vote  reconsidered,  restored  to  third  reading, amended and ordered
          reprinted, retaining its place in the order of third reading
        AN ACT to amend the public service law and the public  authorities  law,
          in relation to establishing the energy storage deployment policy
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 74 of the public service law, as added  by  chapter
     2  415 of the laws of 2017, is amended to read as follows:
     3    §  74. Energy storage deployment [program] policy. 1. [(a)] As used in
     4  this section "qualified energy storage system" shall  mean  commercially
     5  available technology that is capable of absorbing energy, storing it for
     6  a  period  of  time, and thereafter dispatching the energy[. A qualified
     7  energy storage system shall be  cost-effective  and  either  assist  the
     8  integration of variable energy resources, reduce emissions of greenhouse
     9  gases, reduce demand for peak electrical generation, defer or substitute
    10  for  an  investment in generation, transmission, or distribution assets,
    11  or improve the reliable operation  of  the  electrical  transmission  or
    12  distribution grid.
    13    (b)  A  qualified  energy  storage  system shall do one or more of the
    14  following: (i) use] using mechanical, chemical, or thermal processes  to
    15  store  energy  that  was generated at one time for use at a later time[;
    16  (ii) store thermal energy for direct use for heating  or  cooling  at  a
    17  later  time  in a manner that avoids the need to use electricity at that
    18  later time; (iii) use mechanical,  chemical,  or  thermal  processes  to
    19  store energy generated from renewable resources for use at a later time;
    20  or  (iv)  use mechanical, chemical, or thermal processes to store energy
    21  generated from mechanical processes that would otherwise be  wasted  for
    22  delivery at a later time].
    23    2.  [Within  ninety  days  of  the effective date of this section, the
    24  commission shall commence a proceeding to establish the  energy  storage
    25  deployment  program  to  encourage  the installation of qualified energy

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10350-05-8

        S. 7318--A                          2

     1  storage systems. No later than January first, two thousand eighteen, the
     2  commission shall make a determination  establishing  a  target  for  the
     3  installation  of qualified energy storage systems to be achieved through
     4  two thousand thirty and programs that will enable the state to meet such
     5  target.  The  commission  shall  consult  with the New York state energy
     6  research and development authority and the Long Island  power  authority
     7  in the preparation of such determination.] By December thirty-first, two
     8  thousand  eighteen,  the  commission shall, in consultation with the New
     9  York state energy research and development authority and the Long Island
    10  power authority, after a hearing held on  notice,  establish  by  order,
    11  rules  and  regulations,  both a two thousand thirty energy storage goal
    12  for the state and a deployment policy to support that goal. The  [deter-
    13  mination] energy storage deployment policy shall include the following:
    14    (a)  [The  creation  of  the  energy  storage deployment program to be
    15  administered by the New  York  state  energy  research  and  development
    16  authority and the Long Island power authority;
    17    (b) Estimated annual expenditures associated with the program for each
    18  year  commencing with calendar year two thousand eighteen and continuing
    19  through calendar year two thousand thirty;
    20    (c) Program designs that take the following into consideration:
    21    (1)] avoided or deferred costs associated with transmission,  distrib-
    22  ution, [and/or] or generation capacity;
    23    [(2)] (b) minimization of peak load in constrained areas; [and
    24    (3)] (c) systems that are connected to customer facilities and systems
    25  that are directly connected to transmission and distribution facilities;
    26    (d) cost-effectiveness;
    27    (e) assisting the integration of variable-output energy resources;
    28    (f) reducing emissions of greenhouse gases;
    29    (g) reducing demand for peak electrical generation; and
    30    (h) improving the reliable operation of the electrical transmission or
    31  distribution systems;
    32    (i)  Annual  reports  on  the  achievements  and  effectiveness of the
    33  [program] policy to be submitted to the governor, the  temporary  presi-
    34  dent of the senate, and the speaker of the assembly; and
    35    [(e)] (j) Such other issues deemed appropriate by the commission.
    36    §  2. Section 1020-ii of the public authorities law, as added by chap-
    37  ter 415 of the laws of 2017, is amended to read as follows:
    38    § 1020-ii. Energy storage deployment [program] policy.  The  authority
    39  shall  encourage the installation of qualified energy storage systems in
    40  its service territory  through  implementation  of  the  energy  storage
    41  deployment  [program]  policy as set forth and defined in section seven-
    42  ty-four of the public service law.
    43    § 3. This act shall take effect immediately.