ASSEMBLY, No. 4728

STATE OF NEW JERSEY

217th LEGISLATURE

INTRODUCED MARCH 20, 2017

 

 

Sponsored by:

Assemblyman  TIM EUSTACE

District 38 (Bergen and Passaic)

Assemblywoman  JOANN DOWNEY

District 11 (Monmouth)

Assemblyman  ERIC HOUGHTALING

District 11 (Monmouth)

 

 

 

 

SYNOPSIS

     Requires BPU to conduct energy storage analysis.

 

CURRENT VERSION OF TEXT

     As introduced.

 

An Act requiring the Board of Public Utilities to conduct an energy storage analysis.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  a.  Within one year after the effective date of this act, the Board of Public Utilities shall conduct an energy storage analysis and submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature concerning energy storage needs and opportunities in the State.  In conducting this analysis, the board shall:

     (1) consider how implementation of renewable electric energy storage systems may benefit ratepayers by providing emergency back-up power for essential services, offsetting peak loads, and stabilizing the electric distribution system;

     (2) consider whether implementation of renewable electric energy storage systems would promote the use of electric vehicles in the State and the potential impact on renewable energy production in the State;

     (3) study the types of energy storage technologies currently being implemented in the State;

     (4) consider the benefits and costs to ratepayers, local governments, and electric public utilities associated with the development and implementation of additional energy storage technologies;

     (5) determine the optimal amount of energy storage to be added in the State over the next five years in order to provide the maximum benefit to ratepayers; and

     (6) calculate the cost to the State's ratepayers of adding the optimal amount of energy storage.

     In conducting the analysis required by this subsection, the board shall also consider the need for integration of distributed energy resources into the electric distribution system and how distributed energy resources may be incorporated into the electric distribution system in the most efficient and cost-effective manner. 

     b.  In conducting the energy storage analysis required by this section, the board shall consult with the Laboratory for Energy Smart Systems in the Center for Advanced Infrastructure and Transportation at Rutgers, The State University, and public and private entities in other states that have conducted studies concerning, or are implementing technologies for, energy storage and distributed energy resources. 

     c.  The board's written report shall:  (1) summarize the analysis conducted pursuant to subsection a. of this section; (2) discuss and quantify the potential benefits and costs associated with increasing opportunities for energy storage and distributed energy resources in the State; and (3) recommend ways to increase opportunities for energy storage and distributed energy resources opportunities in the State, including any recommendations for financial incentives to aid in the development and implementation of these technologies by public and private entities in the State.

 

     2.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the Board of Public Utilities to conduct an energy storage analysis.

     In conducting the analysis required by the bill, the board would:

     (1) consider how implementation of renewable electric energy storage systems may benefit ratepayers by providing emergency back-up power for essential services, offsetting peak loads, and stabilizing the electric distribution system;

     (2) consider whether implementation of renewable electric energy storage systems would promote the use of electric vehicles in the State and the potential impact on renewable energy production in the State;

     (3) study the types of energy storage technologies currently being implemented in the State;

     (4) consider the benefits and costs to ratepayers, local governments, and electric public utilities associated with the development and implementation of additional energy storage technologies;

     (5) determine the optimal amount of energy storage to be added in the State over the next five years in order to provide the maximum benefit to ratepayers; and

     (6) calculate the cost to the State's ratepayers of adding the optimal amount of energy storage.

     In conducting this analysis, the bill directs the board to also consider the need for integration of distributed energy resources into the electric distribution system and how distributed energy resources may be incorporated into the electric distribution system in the most efficient and cost-effective manner. 

     The bill directs the board to consult with the Laboratory for Energy Smart Systems at Rutgers, The State University, and public and private entities in other states that have conducted studies concerning, or are implementing technologies for, energy storage and distributed energy resources. 

     The bill requires the board to prepare and submit, within one year after enactment of the bill into law, a written report to the Governor and to the Legislature concerning energy storage needs and opportunities in the State.  The report would:  (1) summarize the energy storage analysis; (2) discuss and quantify the potential benefits and costs associated with increasing opportunities for energy storage and distributed energy resources in the State; and (3) recommend ways to increase opportunities for energy storageand distributed energy resources opportunities in the State, including any recommendations for financial incentives to aid in the development and implementation of these technologies by public and private entities in the State.

     Energy storage is the capture of energy produced at one time for use at a later time, and "distributed energy resources" refer to smaller power sources, including energy storage and advanced renewable technologies, that can be aggregated to provide power necessary to meet electricity demand.  Increasing the amount of energy storage capacity on the power grid has the potential to transform the way electricity is generated and consumed.  Energy storage allows for the use of energy generated during low cost off-peak periods to serve load during expensive peak periods, thereby improving the overall utilization and economies of the electric grid.  Recent advances in new energy storage technologies, such as grid-scale batteries, are increasing the viability of wide-scale deployment of electricity storage.  Energy storage resources are capable of quickly dispatching electricity, can provide various storage durations, and range in scale from small systems used in homes for backup power to utility-scale systems that interconnect to the bulk power grid.