1.

1. (a) As used in this section "qualified 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. A qualified energy storage system shall be cost-effective and either assist the integration 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.
2. (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 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:

1. (a) The creation of the energy storage deployment program to be administered by the New York state energy research and development authority and the Long Island power authority;
2. (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;

3. (c) Program designs that take the following into consideration:

   1. (1) avoided or deferred costs associated with transmission, distribution, and/or capacity;
   2. (2) minimization of peak load in constrained areas; and
   3. (3) systems that are connected to customer facilities and systems that are directly connected to transmission and distribution facilities;
4. (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
5. (e) Such other issues deemed appropriate by the commission.