Amendment #19 to H4377

Energy Storage

Ms. Benson of Lunenburg moves to amend the bill by adding the following section:

SECTION XXX. Chapter 164 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by adding the following 3 sections:-

Section 146. (a) For purposes of the following two sections, “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 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: (1) use mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time; (2) 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; (3) use mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time; or (4) use mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time.

Section 147. (a) On or before December 31, 2016, the department of energy resources shall open a proceeding to determine appropriate targets, if any, for electric companies to procure viable and cost-effective energy storage systems to be achieved by January 1, 2020. As part of this proceeding, the department may consider a variety of possible 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.

(b) The department shall adopt the procurement targets, if determined to be appropriate pursuant to paragraph (a), by July 1, 2017. The department shall reevaluate the procurement targets not less than once every three years.

Section 148. (a) By January 1, 2020, each electric company entity shall submit a report to the department demonstrating that it has complied with the energy storage system procurement targets and policies adopted by the department pursuant to section 147.

(b) Each electric company 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.