S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2371

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Energy

AN  ACT  to  amend  the  energy  law, the public service law, the public
  authorities law and the rural electric cooperative law, in relation to
  establishing the "New York grid modernization act"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York grid modernization act".
  S 2. Legislative findings and purpose. The legislature finds that  the
widely acknowledged bottlenecks in the state's aging infrastructure have
resulted  in high delivery costs for the downstate region and struggling
power plants upstate. This outdated transmission system  is  leading  to
unnecessary  congestion costs. Additionally, increasingly frequent trau-
matic weather events have highlighted the unreliability and  uncertainty
of  our current system. Investments to modernize the state's infrastruc-
ture are needed to reach our energy goals as society's growing  reliance
on  electricity  along  with  advancements in smart grid technology have
made the old model obsolete.
  The legislature further finds and recognizes  that  as  the  available
resources  and technologies evolve, the design of the smart grid must be
capable of adapting to shifting conditions and priorities to meet utili-
ty and customer needs. In the short term, utilities should pursue estab-
lished and reliable technologies that can provide a  relatively  certain
return on investment.
  In  the  longer  term,  federal investment has provided for smart grid
projects nationwide, which will generate a significant base of knowledge
that will help identify technologies that are most effective.
  The legislature also finds that half of the current workforce involved
in the production and delivery of our electricity will be retired or  no
longer in that workforce by 2017. Workforce recruitment campaigns devel-
oped  by utilities, in conjunction with training facilities that provide
certification for skilled positions and offer tuition  assistance,  will

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD06344-02-5

A. 2371                             2

attract  knowledgeable workers who will be instrumental in the implemen-
tation of a modernized electric grid.
  S 3. Section 6-102 of the energy law is amended by adding a new subdi-
vision 7 to read as follows:
  7.  THE BOARD SHALL TAKE AN ACTIVE ROLE IN ADVISING THE PUBLIC SERVICE
COMMISSION IN THE DEVELOPMENT OF, AND ANY SUBSEQUENT REVISIONS  TO,  THE
GRID MODERNIZATION ORDER REQUIRED PURSUANT TO SECTION 66-O OF THE PUBLIC
SERVICE LAW.
  S 4. The public service law is amended by adding a new section 66-o to
read as follows:
  S  66-O. ESTABLISHMENT OF GRID MODERNIZATION PROGRAM.  1. DEFINITIONS.
AS USED IN THIS SECTION:   (A) "ELECTRIC TRANSMISSION  AND  DISTRIBUTION
COMPANY" OR "TRANSMISSION AND DISTRIBUTION COMPANY" SHALL BE KNOWN AS AN
INVESTOR-OWNED  UTILITY  HAVING ANNUAL REVENUES IN EXCESS OF TWO HUNDRED
MILLION DOLLARS THAT TRANSMITS AND DISTRIBUTES ELECTRICITY  WITHIN  THIS
STATE  OR  A MUNICIPALITY THAT DISTRIBUTES ELECTRICITY AND RECEIVES LESS
THAN ITS ENTIRE ELECTRIC SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF
NEW YORK AND IS SUBJECT TO  THE  JURISDICTION  OF  THE  COMMISSION  WITH
RESPECT TO THE REGULATION OF THE PRICE OF ELECTRICITY.
  (B) "FULL LOAD MUNICIPAL ELECTRIC CUSTOMER", SHALL BE KNOWN AS A MUNI-
CIPALITY  THAT  DISTRIBUTES ELECTRICITY AND RECEIVES ITS ENTIRE ELECTRIC
SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK;
  (C) "COOPERATIVE" SHALL HAVE THE SAME MEANING AS SUCH TERM IS  DEFINED
IN PARAGRAPH (A) OF SECTION TWO OF THE RURAL ELECTRIC COOPERATIVE LAW.
  (D)  "NEW  YORK TRANSMISSION AND DISTRIBUTION COORDINATING COUNCIL" OR
"TRANSMISSION COUNCIL" SHALL BE KNOWN AS A  CONSORTIUM  WHICH  SHALL  BE
FORMED  PURSUANT  TO  THIS  ACT  FOR THE PURPOSE OF IDENTIFYING AREAS OF
ELECTRICAL CONGESTION WITHIN NEW YORK'S HIGH VOLTAGE TRANSMISSION SYSTEM
COMPRISING:
  (I) CONSOLIDATED EDISON, ORANGE AND ROCKLAND UTILITIES, CENTRAL HUDSON
GAS AND ELECTRIC, NIAGARA MOHAWK D/B/A NATIONAL  GRID,  NEW  YORK  STATE
ELECTRIC AND GAS AND ROCHESTER GAS AND ELECTRIC;
  (II) PUBLIC POWER AUTHORITIES; AND
  (III) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY;
  (E)  "NEW  YORK'S  HIGH  VOLTAGE TRANSMISSION SYSTEM" OR "HIGH VOLTAGE
TRANSMISSION SYSTEM" SHALL MEAN ELECTRIC TRANSMISSION LINES AS SUCH TERM
IS REFERRED TO IN PARAGRAPH  (A)  OF  SUBDIVISION  TWO  OF  SECTION  ONE
HUNDRED  TWENTY OF THE PUBLIC SERVICE LAW, PROVIDED THAT ELECTRIC TRANS-
MISSION LINES SHALL ALSO INCLUDE  ELECTRIC  TRANSMISSION  LINES  LOCATED
WHOLLY  UNDERGROUND IN A CITY IN EXCESS OF ONE HUNDRED TWENTY-FIVE THOU-
SAND PERSONS OR A PRIMARY TRANSMISSION  LINE  APPROVED  BY  THE  FEDERAL
ENERGY REGULATORY COMMISSION IN CONNECTION WITH A HYDRO-ELECTRIC FACILI-
TY AND OTHER EQUIPMENT NECESSARY FOR ELECTRIC TRANSMISSION.
  (F)  "PUBLIC  POWER AUTHORITIES" SHALL BE KNOWN AS THE POWER AUTHORITY
OF THE STATE OF NEW YORK AND THE LONG ISLAND POWER AUTHORITY.
  (G) "SMART GRID" SHALL BE  KNOWN  AS  INVESTMENTS  AND  POLICIES  THAT
TOGETHER PROMOTE ONE OR MORE OF THE FOLLOWING GOALS:
  (I)  INCREASED  USE  OF DIGITAL INFORMATION AND CONTROLS TECHNOLOGY TO
IMPROVE RELIABILITY, SECURITY AND EFFICIENCY OF THE ELECTRIC GRID;
  (II) DYNAMIC OPTIMIZATION OF GRID OPERATIONS AND RESOURCES, WITH  FULL
CYBER SECURITY;
  (III)  DEPLOYMENT  AND INTEGRATION OF DISTRIBUTED RESOURCES AND GENER-
ATION, INCLUDING RENEWABLE RESOURCES;
  (IV) DEVELOPMENT AND  INCORPORATION  OF  DEMAND-RESPONSE,  DEMAND-SIDE
RESOURCES, AND ENERGY EFFICIENCY RESOURCES;

A. 2371                             3

  (V) DEPLOYMENT OF "SMART" TECHNOLOGIES, REAL-TIME, AUTOMATED, INTERAC-
TIVE TECHNOLOGIES THAT OPTIMIZE THE PHYSICAL OPERATION OF APPLIANCES AND
CONSUMER DEVICES FOR METERING, COMMUNICATIONS CONCERNING GRID OPERATIONS
AND STATUS, AND DISTRIBUTION AUTOMATION.
  (VI) INTEGRATION OF "SMART" APPLIANCES AND CONSUMER DEVICES;
  (VII)  DEPLOYMENT  AND INTEGRATION OF ADVANCED ELECTRICITY STORAGE AND
PEAK-SHAVING TECHNOLOGIES, INCLUDING PLUG-IN ELECTRIC AND  HYBRID  ELEC-
TRIC  VEHICLES,  THERMAL-STORAGE  AIR  CONDITIONING AND RENEWABLE ENERGY
GENERATION;
  (VIII) PROVISION  TO  CONSUMERS  OF  TIMELY  INFORMATION  AND  CONTROL
OPTIONS;
  (IX) DEVELOPMENT OF OPEN ACCESS STANDARDS FOR COMMUNICATION AND INTER-
OPERABILITY  OF APPLIANCES AND EQUIPMENT CONNECTED TO THE ELECTRIC GRID,
INCLUDING THE INFRASTRUCTURE SERVING THE GRID;
  (X) IDENTIFICATION AND LOWERING OF UNREASONABLE OR UNNECESSARY  BARRI-
ERS  TO  ADOPTION  OF  SMART GRID TECHNOLOGIES, PRACTICES, SERVICES, AND
BUSINESS MODELS THAT SUPPORT  ENERGY  EFFICIENCY,  DEMAND-RESPONSE,  AND
DISTRIBUTED GENERATION; AND
  (XI) ADVANCED METERING INFRASTRUCTURE.
  (H)  "ADVANCED METERING INFRASTRUCTURE" OR "AMI" SHALL BE KNOWN AS THE
COMMUNICATIONS HARDWARE AND SOFTWARE AND ASSOCIATED SYSTEM SOFTWARE THAT
IS DESIGNED TO CREATE A NETWORK BETWEEN  ADVANCED  METERS  AND  ELECTRIC
TRANSMISSION  AND  DISTRIBUTION COMPANY SYSTEMS AND ALLOW FOR COLLECTION
AND DISTRIBUTION  OF  INFORMATION  TO  CUSTOMERS  AND  OTHER  AUTHORIZED
PARTIES  IN  ADDITION  TO  PROVIDING  INFORMATION  TO  TRANSMISSION  AND
DISTRIBUTION COMPANIES.
  (I) "SMART GRID ADVISORY COUNCIL"  MEANS  THE  GROUP  OF  STAKEHOLDERS
FORMED  PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR
PURPOSES OF ADVISING AND WORKING WITH THE PUBLIC SERVICE  COMMISSION  TO
DETERMINE  THE  FEASIBILITY  OF  THE DEVELOPMENT AND IMPLEMENTATION OF A
SMART GRID ADVANCED METERING INFRASTRUCTURE DEPLOYMENT PLAN.
  (J)  "WORKFORCE  DEVELOPMENT"  SHALL  MEAN  TRAINING  INITIATIVES  AND
CURRICULUM  SPONSORED  BY  TRANSMISSION  AND  DISTRIBUTION COMPANIES AND
PUBLIC POWER AUTHORITIES THAT WILL ENSURE SUFFICIENT STAFFING TO  IMPLE-
MENT   THE  GRID  MODERNIZATION  PROGRAMS.  SUCH  WORKFORCE  DEVELOPMENT
PROGRAMS SHALL BE UNDERTAKEN THROUGH PARTNERSHIPS WITH  STATE  UNIVERSI-
TIES,  COMMUNITY  COLLEGES,  BOARDS  OF  COOPERATIVE EDUCATION AND OTHER
ENTITIES ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE FOR THE
PURPOSES OF IMPLEMENTING GRID MODERNIZATION PROGRAMS.
  2. SMART GRID ADVISORY COUNCIL. (A) WITHIN ONE HUNDRED EIGHTY DAYS  OF
THE  EFFECTIVE  DATE  OF  THIS  SECTION  THE SMART GRID ADVISORY COUNCIL
("COUNCIL") SHALL BE ESTABLISHED. THE COUNCIL SHALL BE COMPOSED OF SEVEN
VOTING MEMBERS, WITH EACH MEMBER POSSESSING EITHER  TECHNICAL,  BUSINESS
OR  CONSUMER  EXPERTISE  IN SMART GRID TECHNOLOGY. FIVE MEMBERS SHALL BE
APPOINTED BY THE GOVERNOR, ONE MEMBER SHALL BE APPOINTED BY  THE  TEMPO-
RARY  PRESIDENT  OF  THE SENATE AND ONE MEMBER SHALL BE APPOINTED BY THE
SPEAKER OF THE ASSEMBLY. THE GOVERNOR SHALL APPOINT THE  CHAIRPERSON  OF
THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY TO SERVE AS
CHAIRPERSON  OF  THE  COUNCIL. MEMBERS OF THE COUNCIL, EXCEPT THOSE THAT
ARE EMPLOYEES OR OFFICERS OF THE STATE,  ITS  AUTHORITIES  OR  AGENCIES,
SHALL  NOT  RECEIVE A SALARY OR OTHER COMPENSATION, BUT SHALL BE ALLOWED
THE NECESSARY AND ACTUAL EXPENSES INCURRED IN THE PERFORMANCE OF  DUTIES
UNDER  THIS SECTION. ANY REASONABLE COSTS ASSOCIATED WITH FUNCTIONING OF
THE COUNCIL SHALL BE BORNE BY THE NEW YORK  STATE  ENERGY  RESEARCH  AND
DEVELOPMENT AUTHORITY.

A. 2371                             4

  (B)  WITHIN  SIX MONTHS OF THE ESTABLISHMENT OF THE COUNCIL, THE SMART
GRID ADVISORY COUNCIL SHALL SUBMIT A REPORT TO  THE  COMMISSION  ON  THE
FEASIBILITY  OF  ESTABLISHING A STATEWIDE SMART GRID SYSTEM. SUCH REPORT
SHALL ANALYZE THE POTENTIAL FOR THE STATEWIDE  DEVELOPMENT  OF  A  SMART
GRID SYSTEM THAT WOULD:
  (I) UTILIZE DIGITAL INFORMATION TECHNOLOGY AND COMMUNICATIONS NETWORKS
TO  GATHER AND SUBMIT INFORMATION ON ELECTRICITY USAGE, REAL TIME WHOLE-
SALE AND RETAIL ELECTRIC PRICES, VOLTAGE LEVEL, AND DISRUPTIONS ON LOCAL
ELECTRIC DISTRIBUTION NETWORKS;
  (II) ALLOW FOR THE INTEGRATION OF AMI TO MEASURE AND TRANSMIT DATA  ON
CONSUMER ELECTRIC USAGE;
  (III)  INCORPORATE  CONSUMER  PRODUCTS, INCLUDING HOUSEHOLD APPLIANCES
AND ELECTRIC PLUG-IN VEHICLES;
  (IV) PROMOTE THE USE OF DISTRIBUTED  GENERATION,  INCLUDING  RENEWABLE
TECHNOLOGIES; AND
  (V) PROTECT THE PRIVACY OF CONSUMERS AND CONSUMER USAGE DATA.
  3. NEW YORK TRANSMISSION AND DISTRIBUTION COORDINATING COUNCIL.  WITH-
IN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION THE NEW
YORK   TRANSMISSION  AND  DISTRIBUTION  COORDINATING  COUNCIL  SHALL  BE
CREATED. ANY REASONABLE COSTS ASSOCIATED WITH  THE  FUNCTIONING  OF  THE
COMMITTEE  SHALL  BE  BORNE  BY  THE  NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY. WITHIN ONE HUNDRED EIGHTY DAYS OF THE CREATION OF
SUCH COUNCIL, THE COUNCIL SHALL SUBMIT TO THE COMMISSION A REPORT  IDEN-
TIFYING  AREAS  OF  CONCERN WITHIN THE STATE'S HIGH VOLTAGE TRANSMISSION
SYSTEM. SUCH REPORT SHALL:
  (A) LOCATE AND IDENTIFY AND PROPOSE UPGRADES OR  REPLACEMENT  OF  HIGH
VOLTAGE  TRANSMISSION LINES AND/OR COMPONENTS OF THE HIGH VOLTAGE TRANS-
MISSION SYSTEM THAT ARE IN SERVICE AS OF  THE  EFFECTIVE  DATE  OF  THIS
SECTION;
  (B) IDENTIFY EQUIPMENT UPGRADES OR INSTALLATIONS THAT ARE NECESSARY TO
RELIEVE  AREAS  OF  CONGESTION  WITHIN  THE  HIGH  VOLTAGE  TRANSMISSION
NETWORK; AND
  (C) PROVIDE A COST ANALYSIS OF PROPOSED HIGH VOLTAGE TRANSMISSION LINE
COMPONENT UPGRADES OR REPLACEMENT OVER A  TEN-YEAR  PERIOD,  WHICH  SUCH
COST ANALYSIS SHALL INCLUDE:
  (I)  A PROPOSAL FOR THE COST SHARING OF PROPOSED TRANSMISSION UPGRADES
OR REPLACEMENT PROJECTS THAT DIRECTLY OR INDIRECTLY BENEFIT CUSTOMERS IN
THE RESPECTIVE SERVICE TERRITORIES OF TWO OR MORE ELECTRIC  TRANSMISSION
AND DISTRIBUTION COMPANIES;
  (II)  STRATEGIES FOR ATTRACTING PRIVATE INVESTMENT FOR PROPOSED TRANS-
MISSION UPGRADES OR REPLACEMENT PROJECTS IDENTIFIED IN THE REPORT;
  (III) AN ANALYSIS OF THE FINANCIAL AND OTHER IMPACTS OF PROPOSED TRAN-
SMISSION UPGRADES OR REPLACEMENT PROJECTS ON ELECTRIC RATEPAYERS; AND
  (IV) ANY OTHER INFORMATION, STUDIES, MAPS OR ANALYSES THE TRANSMISSION
COUNCIL DEEMS NECESSARY.
  4. COMMISSION REVIEW OF SMART GRID ADVISORY COUNCIL  REPORT.  (A)  THE
COMMISSION, THIRTY DAYS UPON RECEIVING THE "SMART GRID ADVISORY COUNCIL"
REPORT  PURSUANT TO SUBDIVISION TWO OF THIS SECTION, SHALL DETERMINE THE
REASONABLENESS, EFFICACY AND EXPENSE OF THE DEVELOPMENT OF  A  TEN  YEAR
STATEWIDE  SMART GRID DEPLOYMENT BY TRANSMISSION AND DISTRIBUTION COMPA-
NIES AND PUBLIC POWER AUTHORITIES.   IN  MAKING  ITS  DETERMINATION  THE
COMMISSION  SHALL CONSIDER WHETHER SMART GRID DEPLOYMENT WOULD SERVE THE
PUBLIC INTEREST, WITH CONSIDERATION OF THE  IMPACT  ON  THE  SAFETY  AND
RELIABILITY OF LOCAL DISTRIBUTION NETWORKS, THE RETAIL COST OF ELECTRIC-
ITY TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CUSTOMERS AND THE SECURITY
AND PRIVACY OF CUSTOMER ENERGY USAGE INFORMATION AND DATA.

A. 2371                             5

  (B)  IF THE COMMISSION DETERMINES THAT SMART GRID DEPLOYMENT MEETS THE
PUBLIC INTEREST IT SHALL REQUIRE, IN ITS GRID MODERNIZATION ORDER,  MADE
PURSUANT  TO  SUBDIVISION  FIVE  OF  THIS  SECTION THAT TRANSMISSION AND
DISTRIBUTION COMPANIES INVEST IN SMART GRID DEPLOYMENT.
  (C)  IF THE COMMISSION DETERMINES THAT SMART GRID DEPLOYMENT WOULD NOT
MEET THE PUBLIC INTEREST FOR REASONS SPECIFIED IN PARAGRAPH (A) OF  THIS
SUBDIVISION  IT  SHALL  PROVIDE  A  STATEMENT  IN ITS GRID MODERNIZATION
ORDER, MADE PURSUANT TO SUBDIVISION FIVE OF THIS SECTION  DETAILING  THE
REASONS THAT SMART GRID DEPLOYMENT WOULD NOT SERVE THE PUBLIC INTEREST.
  5.  COMMISSION  GRID  MODERNIZATION  ORDER.  NO  LATER  THAN TWO YEARS
FOLLOWING THE EFFECTIVE DATE OF  THIS  SECTION,  THE  COMMISSION,  AFTER
CONSULTATION  WITH THE STATE ENERGY PLANNING BOARD, ESTABLISHED PURSUANT
TO ARTICLE SIX OF THE ENERGY LAW, THE NEW YORK TRANSMISSION AND DISTRIB-
UTION COORDINATING COUNCIL AND THE SMART GRID  ADVISORY  COUNCIL,  SHALL
APPROVE  AN  ORDER APPROVING A TEN YEAR GRID MODERNIZATION PROGRAM TO BE
UNDERTAKEN BY TRANSMISSION AND DISTRIBUTION COMPANIES.
  (A) THE ORDER ESTABLISHING THE  PROGRAM  SHALL  INCLUDE  HIGH  VOLTAGE
TRANSMISSION SYSTEM IMPROVEMENTS, WHICH SHALL INCLUDE, WHERE APPLICABLE,
BUT NOT BE LIMITED TO, THE REPLACEMENT OR UPGRADE OF TRANSMISSION FACIL-
ITIES  OR  TRANSMISSION  LINES,  WHICH, DUE TO THEIR YEARS IN SERVICE OR
LIMITED TRANSFER CAPACITY HAVE CREATED OR HAVE THE POTENTIAL  TO  CREATE
WITHIN  TEN  YEARS  OF  THE EFFECTIVE DATE OF THIS SECTION A SIGNIFICANT
ELECTRIC SYSTEM RELIABILITY PROBLEM, OR AS DETERMINED BY THE  COMMISSION
HAVE  CONTRIBUTED  TO  A  SIGNIFICANT  INCREASE IN THE WHOLESALE COST OF
ELECTRICITY. THE COMMISSION SHALL NOT APPROVE ANY PROPOSAL TO INVEST  IN
NEW  TRANSMISSION  FACILITIES  THAT  WOULD  REQUIRE  THE  ACQUISITION OF
SUBSTANTIAL NEW RIGHTS OF WAY.  ANY  HIGH  VOLTAGE  TRANSMISSION  SYSTEM
IMPROVEMENTS ORDERED BY THE COMMISSION SHALL:
  (I)  ENCOURAGE  THE  INTERCONNECTION OF EXISTING AND PROPOSED ELECTRIC
GENERATING FACILITIES, WITH AN EMPHASIS ON  RENEWABLE  ENERGY  TECHNOLO-
GIES, INCLUDING BUT NOT LIMITED TO SOLAR AND WIND;
  (II)  ALLOW  FOR THE ECONOMIC AND COST-EFFECTIVE TRANSMISSION OF ELEC-
TRICITY  FROM  EXISTING  AND  PROPOSED  ELECTRIC  GENERATING  FACILITIES
LOCATED IN NEW YORK TO ENERGY INTENSIVE REGIONS LOCATED WITHIN THE ELEC-
TRIC  TRANSMISSION  SYSTEM  OPERATED BY THE BULK SYSTEM OPERATOR SERVING
THE STATE'S ELECTRIC SYSTEM;
  (III) BE SITED ONLY ON EXISTING TRANSMISSION RIGHTS OF  WAY,  PROVIDED
FURTHER THAT THE ACQUISITION OF ADDITIONAL LANDS PARALLEL TO SUCH RIGHTS
OF WAY BE MINIMAL;
  (IV)  BE  DESIGNED TO REDUCE SUSCEPTIBILITY TO POWER OUTAGES CAUSED BY
EVENTS SUCH AS STORM-RELATED DAMAGE INCLUDING, BUT NOT LIMITED TO,  HIGH
WINDS, THUNDERSTORMS AND ICE STORMS; AND
  (V)  MEET  ANY OTHER STANDARDS FOR ECONOMY AND RELIABILITY ESTABLISHED
BY THE COMMISSION IN DEVELOPING ITS GRID MODERNIZATION PROGRAM.
  (B) THE ORDER ESTABLISHING THE PROGRAM SHALL ALSO INCLUDE DISTRIBUTION
SYSTEM IMPROVEMENTS SUCH AS BUT NOT BE LIMITED TO  UNDERGROUND  RESIDEN-
TIAL DISTRIBUTION CABLE INJECTION AND REPLACEMENT, MAINLINE CABLE SYSTEM
REFURBISHMENT  AND  REPLACEMENT, WOOD UTILITY POLE INSPECTION, TREATMENT
AND REPLACEMENT, THE REPLACEMENT OR RELOCATION OR UNDERGROUND CONVERSION
OF CERTAIN CIRCUITS OR OTHER SIMILAR MEASURES TO MINIMIZE OUTAGES CAUSED
BY DAMAGE TO INFRASTRUCTURE AND EQUIPMENT THAT HAVE BEEN  IDENTIFIED  AS
SUSCEPTIBLE  TO DAMAGE FROM EVENTS SUCH AS STORM-RELATED DAMAGE, INCLUD-
ING, BUT NOT LIMITED TO,  HIGH  WINDS,  THUNDERSTORMS  AND  ICE  STORMS.
DISTRIBUTION SYSTEM IMPROVEMENTS MADE PURSUANT TO THIS ORDER SHALL:
  (I)  BE  DESIGNED  TO  REDUCE THE SUSCEPTIBILITY TO ELECTRICAL OUTAGES
INCLUDING THOSE CAUSED BY EVENTS SUCH AS STORMS;

A. 2371                             6

  (II) WHERE POSSIBLE AND PRACTICABLE, BE  DESIGNED  AND  LOCATED  IN  A
MANNER THAT WILL REDUCE THE RELIANCE ON UTILITY RIGHT OF WAY MAINTENANCE
PRACTICES INCLUDING TREE AND BRUSH CUTTING; AND
  (III) WHERE POSSIBLE AND PRACTICABLE ALLOW FOR AND ENCOURAGE THE INTE-
GRATION  OF  AMI  IF THE COMMISSION FINDS THAT IT WOULD BE IN THE PUBLIC
INTEREST.
  (C) THE ORDER ESTABLISHING THE PROGRAM SHALL ALSO INCLUDE ENERGY  LOW-
INCOME  ASSISTANCE  AND  ENERGY USAGE EDUCATION, WHICH SHALL INCLUDE BUT
NOT BE LIMITED TO:
  (I) RESIDENTIAL AND NON-RESIDENTIAL AND SMALL BUSINESS  UTILITY  RATE-
PAYER HARDSHIP PROGRAMS;
  (II)  GRANTS  AND  OTHER  PAYMENT  CONCESSIONS  TO  DISABLED VETERANS,
DEFINED AS A VETERAN WHO HAS RECEIVED A  COMPENSATION  RATING  FROM  THE
UNITED  STATES  DEPARTMENT OF VETERANS AFFAIRS OR FROM THE UNITED STATES
DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED
IN THE LINE OF DUTY IN THE ACTIVE MILITARY, NAVAL OR  AIR  SERVICES  WHO
DEMONSTRATE  A  HARDSHIP,  A  DISABLED  VETERAN  WHO BECAME SEVERELY AND
PERMANENTLY DISABLED AS A  RESULT  OF  INJURY  OR  ILLNESS  SUFFERED  OR
INCURRED  DURING  MILITARY  TRAINING IN PREPARATION FOR DUTY IN A COMBAT
THEATER OR COMBAT ZONE OF OPERATIONS  WHO  DEMONSTRATE  A  HARDSHIP  AND
MEMBERS  OF  THE  ARMED  SERVICES  OR  A MEMBER OF THE NATIONAL GUARD OR
RESERVE AS DEFINED IN 10 U.S.C. SECTION 101 (D) (1), OR A MEMBER OF  THE
STATE ORGANIZED MILITIA, AND IS CALLED OR ORDERED TO ACTIVE DUTY FOR THE
STATE,  AS DEFINED IN SUBDIVISION ONE OF SECTION SIX OF THE MILITARY LAW
AND WHO DEMONSTRATES A HARDSHIP; AND
  (III) BUDGET ASSISTANCE PROGRAMS THAT PROVIDE TOOLS AND  EDUCATION  TO
THE  GENERAL  PUBLIC WITH AN EMPHASIS ON LOW-INCOME CUSTOMERS AND SENIOR
CITIZENS TO ASSIST THEM  WITH  OBTAINING  INFORMATION  REGARDING  ENERGY
USAGE AND EFFECTIVE MEANS OF MANAGING ENERGY COSTS.
  (D)  ENERGY LOW-INCOME ASSISTANCE AND EDUCATION PROGRAMS MADE PURSUANT
TO THIS SECTION SHALL BE DESIGNED TO REDUCE OR PREVENT DISCONNECTION  OF
UTILITY  SERVICE TO RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS DUE TO ANY
POTENTIAL INCREASE IN MONTHLY UTILITY BILLS.
  (E) IF THE COMMISSION DETERMINES THAT IT IS IN  THE  PUBLIC  INTEREST,
THE ORDER ESTABLISHING THE PROGRAM SHALL ALSO INCLUDE SMART GRID DEPLOY-
MENT.  SMART  GRID INFRASTRUCTURE DEPLOYMENT MADE PURSUANT TO THIS ORDER
SHALL:
  (I) BE DESIGNED TO ALLOW FOR ELECTRIC CUSTOMERS  TO  OBTAIN  REAL-TIME
RETAIL  ELECTRIC  PRICING  DATA  AND  CONSUMER  DEMAND DATA WITHIN THEIR
RESPECTIVE COMPANY'S SERVICE TERRITORY THROUGH THE INSTALLATION OF  AMI,
WHICH  MAY  INCLUDE  SMART  METERS  OR INTERACTIVE CONSUMER SOFTWARE AND
COMMUNICATIONS APPLICATIONS;
  (II) PROTECT CUSTOMER PRIVACY, INCLUDING PERSONAL  FINANCIAL  INFORMA-
TION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE;
  (III)  ALLOW ANY CUSTOMER OF AN ELECTRIC TRANSMISSION AND DISTRIBUTION
COMPANY TO, AT NO PENALTY, FEE OR SERVICE CHARGE, TO DECLINE THE PERMIS-
SION OF HIS OR HER RESPECTIVE COMPANY TO REPLACE A CURRENT METER WITH AN
AMI DEVICE OR INSTALL ANY AMI DEVICE AT HIS  OR  HER  PROPERTY  FOR  THE
MEASUREMENT OF AND STORAGE OF ELECTRIC USAGE DATA;
  (IV) ACCOMMODATE AND ENCOURAGE THE USE OF SMART APPLIANCES AND PLUG-IN
OR HYBRID ELECTRIC VEHICLES; AND
  (V)  INCLUDE  INITIATIVES  TO EDUCATE CONSUMERS ON THE PROPER USAGE OF
TECHNOLOGIES WITH THE AIM OF PROMOTING  SYSTEM-WIDE  REDUCTION  OF  PEAK
ENERGY USAGE.
  (F) THE ORDER ESTABLISHING THE PROGRAM SHALL ALSO REQUIRE ELECTRIC AND
TRANSMISSION  DISTRIBUTION  COMPANIES TO ADMINISTER A WORKFORCE DEVELOP-

A. 2371                             7

MENT PROGRAM DESIGNED TO ENSURE THAT EACH SUCH COMPANY WILL RECRUIT  AND
MAINTAIN  ADEQUATE  CERTIFIED  FULL-TIME  AND  PART-TIME  EMPLOYEES  AND
CONTRACTED WORKERS TO CARRY OUT THE REQUIREMENTS PURSUANT TO  PARAGRAPHS
(A),  (B),  AND  (C)  OF THIS SUBDIVISION. WORKFORCE DEVELOPMENT PROGRAM
MADE PURSUANT TO THIS SUBDIVISION SHALL:
  (I) REQUIRE EACH TRANSMISSION AND  DISTRIBUTION  COMPANY  WITH  ANNUAL
GROSS  REVENUES IN EXCESS OF TWO HUNDRED MILLION DOLLARS TO MAINTAIN, AT
A MINIMUM, ONE IN-STATE TRAINING FACILITY LOCATED WITHIN ITS  RESPECTIVE
SERVICE  TERRITORY FOR THE PURPOSES OF PROVIDING FULL-TIME AND PART-TIME
EMPLOYEES AND CONTRACTED WORKERS ANY NECESSARY INSTRUCTION AND  HANDS-ON
TRAINING  REQUIRED  FOR  SMART  GRID  DEPLOYMENT  MADE  PURSUANT TO THIS
SECTION;
  (II) REQUIRE EACH TRANSMISSION AND DISTRIBUTION COMPANY  TO  CREATE  A
TUITION  AND  FINANCIAL  ASSISTANCE  FUND WITH ANY MONIES MADE AVAILABLE
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX OF THIS  SECTION  TO  COVER
THE  COSTS  OF  TRAINING  PROSPECTIVE  FULL-TIME AND PART-TIME EMPLOYEES
THROUGH STATE UNIVERSITIES, COMMUNITY COLLEGES,  BOARDS  OF  COOPERATIVE
EDUCATION  AND OTHER ENTITIES ACCREDITED BY THE AMERICAN NATIONAL STAND-
ARDS INSTITUTE.
  (III) REQUIRE EACH TRANSMISSION AND DISTRIBUTION  COMPANY  TO  DEVELOP
WORKFORCE  RECRUITMENT  PROGRAMS  TO ENSURE THAT EACH SUCH COMPANY MAIN-
TAINS SUFFICIENT FULL-TIME AND PART-TIME EMPLOYEES TO OFFSET ANY  POTEN-
TIAL WORKFORCE REDUCTIONS ATTRIBUTED TO RETIREMENT.
  6.  ELECTRIC  TRANSMISSION  AND  DISTRIBUTION COMPANY PROGRAM PLAN. NO
LATER THAN ONE YEAR FOLLOWING THE COMMISSION'S GRID MODERNIZATION ORDER,
EACH ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANY SHALL FILE A PROGRAM
PLAN FOR THE PURPOSE OF COMPLYING WITH SUCH ORDER MADE PURSUANT TO  THIS
SECTION.
  (A)  THE  COMMISSION SHALL APPROVE EACH SUCH PLAN, OR MAY MODIFY IT AS
IT DEEMS APPROPRIATE, IF THE COMMISSION FINDS THAT THE PLAN WOULD RESULT
IN ACHIEVEMENT OF THE COMPANY'S OBLIGATIONS, PROMOTES THE SUSTAINED  AND
ORDERLY  DEVELOPMENT  OF THE STATEWIDE ELECTRIC POWER GRID, AND PROTECTS
RATEPAYERS FROM SIGNIFICANT RETAIL ELECTRIC RATE INCREASES. THE  COMMIS-
SION  SHALL  REQUIRE EACH ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANY
TO BEGIN IMPLEMENTATION OF ITS GRID MODERNIZATION PROGRAMS WITHIN  THREE
HUNDRED SIXTY-FIVE DAYS OF ITS APPROVAL.
  (B)  THE TEN YEAR PLANS SUBMITTED BY THE TRANSMISSION AND DISTRIBUTION
COMPANIES PURSUANT TO THIS SUBDIVISION  SHALL  BE  DESIGNED  TO  INCLUDE
ANNUAL  INVESTMENT  TARGETS;  INTERVENOR  FUNDS;  REBATES FOR HOUSEHOLDS
ELIGIBLE FOR ENERGY LOW-INCOME ASSISTANCE; CONSUMER EDUCATION AND  WORK-
FORCE  DEVELOPMENT;  AMI DEPLOYMENT PLANS FOR CUSTOMERS WITH ELECTRICITY
DEMANDS LESS THAN 300  KILOWATT  HOURS;  WORKFORCE  AND  CYBER  SECURITY
SYSTEMS  TO  PROTECT CUSTOMER FINANCIAL INFORMATION AND DATA RELATING TO
PERSONAL ELECTRICAL USAGE.
  (C) THE COMMISSION SHALL NOT APPROVE A RATE PROPOSAL DUE  TO  EXPENDI-
TURES  MADE  IN  ORDER  TO  COMPLY WITH THIS SECTION MADE BY AN ELECTRIC
TRANSMISSION AND DISTRIBUTION COMPANY IF SUCH  PROPOSAL  WOULD  INCREASE
ELECTRIC  RATES  FOR  CUSTOMERS  ABOVE TWO AND ONE-HALF PERCENT.  IN THE
EVENT THAT SUCH CAP WOULD  BE  EXCEEDED,  THE  COMMISSION  MAY,  IN  ITS
DISCRETION  ORDER  A  TRANSMISSION  AND  DISTRIBUTION  COMPANY TO REDUCE
EXPENDITURES IN THE FOLLOWING REPORTING YEAR TO A LEVEL  SUFFICIENT  FOR
ACHIEVING  GRID  MODERNIZATION  BENCHMARKS WITHOUT SIGNIFICANT IMPACT TO
RATEPAYERS.
  (D) THE COMMISSION SHALL  PROPORTIONALLY  CREDIT  AND  MAKE  AVAILABLE
FUNDS  FOR  THE  PURPOSES  OF  CREATING A FUND FOR TUITION AND FINANCIAL
ASSISTANCE AS REQUIRED BY SUBPARAGRAPH (II) OF PARAGRAPH (F) OF SUBDIVI-

A. 2371                             8

SION FIVE OF THIS SECTION FROM ASSESSMENTS ON TRANSMISSION AND  DISTRIB-
UTION COMPANIES UNDER DIRECT OVERSIGHT OF THE COMMISSION COLLECTED ON OR
AFTER  JULY  FIRST, TWO THOUSAND SIX FOR THE PURPOSE OF FUNDING ELECTRIC
UTILITY  PUBLIC  BENEFIT PROGRAMS, INCLUDING, BUT NOT LIMITED TO, ENERGY
EFFICIENCY AND ENERGY CONSERVATION PROGRAMS, OTHER ENERGY TECHNOLOGY AND
EDUCATION PROGRAMS AND ANY INTEREST EARNED BY THE FUND.
  7. NO LATER THAN JULY FIRST, TWO  THOUSAND  EIGHTEEN,  AND  EVERY  TWO
YEARS  THEREAFTER,  THE COMMISSION SHALL, AFTER NOTICE AND PROVISION FOR
THE OPPORTUNITY FOR PUBLIC COMMENT, ISSUE A COMPREHENSIVE REVIEW OF  THE
PROGRAM  ESTABLISHED  PURSUANT  TO  THIS  SECTION.  THE COMMISSION SHALL
DETERMINE, AMONG OTHER MATTERS:
  (A) THE PROGRESS OF EACH  TRANSMISSION  AND  DISTRIBUTION  COMPANY  IN
MEETING ITS OBLIGATIONS PURSUANT TO THIS ACT AND PROGRESS IN MEETING THE
OVERALL ANNUAL TARGETS FOR MODERNIZATION; AND
  (B) ANNUAL COMMITMENTS AND EXPENDITURES. THE COMMISSION SHALL EVALUATE
THE  REASONABLENESS  OF  THE ANY MODIFICATIONS TO ITS GRID MODERNIZATION
ORDER.
  S 5. Section 66 of the public service law is amended by adding  a  new
subdivision 29 to read as follows:
  29.  (A)  EACH ELECTRIC AND GAS CORPORATION WITH ANNUAL GROSS REVENUES
IN EXCESS OF TWO HUNDRED MILLION DOLLARS SHALL NOT EMPLOY  OR  OTHERWISE
CONTRACT  FOR  THE  SERVICES OF A LINEWORKER, UTILITY SUBSTATION TECHNI-
CIAN, RELAY TECHNICIAN, ENGINEERING TECHNICIAN, ALTERNATIVE FUEL TECHNI-
CIAN, METER TECHNICIAN, NATURAL GAS TECHNICIAN, GAS SERVICE  TECHNICIAN,
CORROSION  TECHNICIAN,  GENERATION  INSTRUMENT  AND  CONTROL TECHNICIAN,
MECHANICAL TECHNICIAN, ELECTRICAL TECHNICIAN, AUXILIARY EQUIPMENT OPERA-
TOR, PLANT OPERATOR, RADIATION PROTECTION TECHNICIAN, UNLESS THE  PERSON
MEETS ONE OF THE FOLLOWING:
  (I)  HAS  SUCCESSFULLY  COMPLETED AN EDUCATIONAL PROGRAM AND HOLDS AND
MAINTAINS A CERTIFICATE ADMINISTERED BY AN AMERICAN  NATIONAL  STANDARDS
INSTITUTE  (ANSI)  ACCREDITED  CENTER  FOR  ENERGY WORKFORCE DEVELOPMENT
(CEWD) ENERGY INDUSTRY FUNDAMENTALS APPROVED COURSE PROVIDER;
  (II) HAS COMPLETED AN  APPROPRIATE  TRAINING  PROGRAM  IN  THE  UNITED
STATES  ARMY, NAVY, AIR FORCE, MARINE CORPS THAT IS COMPARABLE TO TRAIN-
ING PROVIDED BY THE ENTITIES LISTED IN SUBPARAGRAPH (I)  OF  THIS  PARA-
GRAPH;
  (III)  WAS  EMPLOYED BY AN ELECTRIC AND GAS CORPORATION TO PERFORM THE
DUTIES RELATED TO SERVICES REQUIRED OF ONE  OR  MORE  OF  THE  POSITIONS
IDENTIFIED IN THIS PARAGRAPH ON OR IN THE TWO YEARS IMMEDIATELY PRIOR TO
THE EFFECTIVE DATE OF THIS PARAGRAPH; OR
  (IV)  IS  IN  THE  SERVICE  OF  AN AGENCY OR DEPARTMENT OF THE FEDERAL
GOVERNMENT, TO THE EXTENT THE PERSON IS PERFORMING  SERVICES  COMPARABLE
TO THE POSITIONS LISTED IN THIS PARAGRAPH.
  A  PERSON  MAY  BE EMPLOYED OR CONTRACTED BY AN ELECTRIC OR GAS CORPO-
RATION TO PERFORM THE DUTIES RELATED TO SERVICES REQUIRED OF ONE OR MORE
OF THE POSITIONS IDENTIFIED IN THIS PARAGRAPH DURING  THE  TWELVE  MONTH
PERIOD  IMMEDIATELY  FOLLOWING  SUCCESSFUL  COMPLETION OF AN EDUCATIONAL
PROGRAM UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, BUT MAY  NOT  CONTINUE
TO  BE EMPLOYED OR CONTRACTED WITH BEYOND THAT PERIOD WITHOUT DOCUMENTA-
TION THAT THE EMPLOYEE OR CONTRACTED  WORKER  HOLDS  AND  MAINTAINS  THE
CERTIFICATION REQUIRED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH.
  (B)  A  PERSON WHO QUALIFIES TO PERFORM THE DUTIES RELATED TO SERVICES
REQUIRED OF ONE OR MORE OF THE POSITIONS IDENTIFIED IN PARAGRAPH (A)  OF
THIS  SUBDIVISION  MUST  ANNUALLY COMPLETE AT LEAST THIRTY-FIVE HOURS OF
CONTINUING EDUCATION TO REMAIN QUALIFIED TO BE  EMPLOYED  OR  CONTRACTED
WITH  FOR SUCH SERVICES BY AN ELECTRIC AND GAS CORPORATION. ANY EXPENSES

A. 2371                             9

ASSOCIATED WITH THE CONTINUING EDUCATION REQUIREMENTS OF  THIS  SUBPARA-
GRAPH SHALL BE THE RESPONSIBILITY OF THE EMPLOYER.
  S 6. Section 1005 of the public authorities law is amended by adding a
new subdivision 25 to read as follows:
  25.  ESTABLISHMENT  OF GRID MODERNIZATION PROGRAM. 1.  DEFINITIONS. AS
USED IN THIS SECTION:
  (A) "ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANY" OR  "TRANSMISSION
AND  DISTRIBUTION  COMPANY"  SHALL BE KNOWN AS AN INVESTOR-OWNED UTILITY
HAVING ANNUAL REVENUES IN EXCESS OF TWO  HUNDRED  MILLION  DOLLARS  THAT
TRANSMITS  AND  DISTRIBUTES  ELECTRICITY  WITHIN THIS STATE OR A MUNICI-
PALITY THAT DISTRIBUTES ELECTRICITY AND RECEIVES LESS  THAN  ITS  ENTIRE
ELECTRIC SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK AND IS
SUBJECT  TO THE JURISDICTION OF THE COMMISSION WITH RESPECT TO THE REGU-
LATION OF THE PRICE OF ELECTRICITY.
  (B) "FULL LOAD MUNICIPAL ELECTRIC CUSTOMER" SHALL BE KNOWN AS A  MUNI-
CIPALITY  THAT  DISTRIBUTES ELECTRICITY AND RECEIVES ITS ENTIRE ELECTRIC
SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK.
  (C)"COOPERATIVE" SHALL HAVE THE SAME MEANING AS SUCH TERM  IS  DEFINED
IN PARAGRAPH (A) OF SECTION TWO OF THE RURAL ELECTRIC COOPERATIVE LAW.
  (D)  "PUBLIC  POWER AUTHORITIES" SHALL BE KNOWN AS THE POWER AUTHORITY
OF THE STATE OF NEW YORK AND THE LONG ISLAND POWER AUTHORITY.
  (E) "NEW YORK TRANSMISSION AND DISTRIBUTION COORDINATING  COUNCIL"  OR
"TRANSMISSION  COUNCIL"  SHALL  BE  KNOWN AS A CONSORTIUM WHICH SHALL BE
FORMED PURSUANT TO SUBDIVISION  THREE  OF  SECTION  SIXTY-SIX-O  OF  THE
PUBLIC  SERVICE  LAW  FOR THE PURPOSE OF IDENTIFYING AREAS OF ELECTRICAL
CONGESTION WITHIN NEW YORK'S HIGH VOLTAGE TRANSMISSION  SYSTEM  COMPRIS-
ING:
  (I) CONSOLIDATED EDISON, ORANGE AND ROCKLAND UTILITIES, CENTRAL HUDSON
GAS  AND  ELECTRIC,  NIAGARA  MOHAWK D/B/A NATIONAL GRID, NEW YORK STATE
ELECTRIC AND GAS AND ROCHESTER GAS AND ELECTRIC;
  (II) PUBLIC POWER AUTHORITIES; AND
  (III) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  (F) "NEW YORK'S HIGH VOLTAGE TRANSMISSION  SYSTEM"  OR  "HIGH  VOLTAGE
TRANSMISSION  SYSTEM" SHALL MEAN ELECTRIC TRANSMISSION LINES AS REFERRED
TO IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE HUNDRED TWENTY  OF
THE  PUBLIC SERVICE LAW, PROVIDED THAT ELECTRIC TRANSMISSION LINES SHALL
ALSO INCLUDE ELECTRIC TRANSMISSION LINES LOCATED WHOLLY UNDERGROUND IN A
CITY IN EXCESS OF ONE HUNDRED TWENTY-FIVE THOUSAND PERSONS OR A  PRIMARY
TRANSMISSION  LINE  APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION
IN CONNECTION WITH A HYDRO-ELECTRIC FACILITY AND OTHER EQUIPMENT  NECES-
SARY FOR ELECTRIC TRANSMISSION.
  (G)  "SMART  GRID"  SHALL  BE  KNOWN  AS INVESTMENTS AND POLICIES THAT
TOGETHER PROMOTE ONE OR MORE OF THE FOLLOWING GOALS:
  (I) INCREASED USE OF DIGITAL INFORMATION AND  CONTROLS  TECHNOLOGY  TO
IMPROVE RELIABILITY, SECURITY AND EFFICIENCY OF THE ELECTRIC GRID;
  (II)  DYNAMIC OPTIMIZATION OF GRID OPERATIONS AND RESOURCES, WITH FULL
CYBER SECURITY;
  (III) DEPLOYMENT AND INTEGRATION OF DISTRIBUTED RESOURCES  AND  GENER-
ATION, INCLUDING RENEWABLE RESOURCES;
  (IV)  DEVELOPMENT  AND  INCORPORATION  OF DEMAND-RESPONSE, DEMAND-SIDE
RESOURCES, AND ENERGY EFFICIENCY RESOURCES;
  (V) DEPLOYMENT OF "SMART" TECHNOLOGIES, REAL-TIME, AUTOMATED, INTERAC-
TIVE TECHNOLOGIES THAT OPTIMIZE THE PHYSICAL OPERATION OF APPLIANCES AND
CONSUMER DEVICES FOR METERING, COMMUNICATIONS CONCERNING GRID OPERATIONS
AND STATUS, AND DISTRIBUTION AUTOMATION;
  (VI) INTEGRATION OF "SMART" APPLIANCES AND CONSUMER DEVICES;

A. 2371                            10

  (VII) DEPLOYMENT AND INTEGRATION OF ADVANCED ELECTRICITY  STORAGE  AND
PEAK-SHAVING  TECHNOLOGIES,  INCLUDING PLUG-IN ELECTRIC AND HYBRID ELEC-
TRIC VEHICLES, THERMAL-STORAGE AIR  CONDITIONING  AND  RENEWABLE  ENERGY
GENERATION;
  (VIII)  PROVISION  TO  CONSUMERS  OF  TIMELY  INFORMATION  AND CONTROL
OPTIONS;
  (IX) DEVELOPMENT OF OPEN ACCESS STANDARDS FOR COMMUNICATION AND INTER-
OPERABILITY OF APPLIANCES AND EQUIPMENT CONNECTED TO THE ELECTRIC  GRID,
INCLUDING THE INFRASTRUCTURE SERVING THE GRID;
  (X)  IDENTIFICATION AND LOWERING OF UNREASONABLE OR UNNECESSARY BARRI-
ERS TO ADOPTION OF SMART GRID  TECHNOLOGIES,  PRACTICES,  SERVICES,  AND
BUSINESS  MODELS  THAT  SUPPORT  ENERGY EFFICIENCY, DEMAND-RESPONSE, AND
DISTRIBUTED GENERATION; AND
  (XI) ADVANCED METERING INFRASTRUCTURE.
  (H) "ADVANCED METERING INFRASTRUCTURE" OR "AMI" SHALL BE KNOWN AS  THE
COMMUNICATIONS HARDWARE AND SOFTWARE AND ASSOCIATED SYSTEM SOFTWARE THAT
IS  DESIGNED  TO  CREATE  A NETWORK BETWEEN ADVANCED METERS AND ELECTRIC
TRANSMISSION AND DISTRIBUTION COMPANY SYSTEMS AND ALLOW  FOR  COLLECTION
AND  DISTRIBUTION  OF  INFORMATION  TO  CUSTOMERS  AND  OTHER AUTHORIZED
PARTIES  IN  ADDITION  TO  PROVIDING  INFORMATION  TO  TRANSMISSION  AND
DISTRIBUTION COMPANIES.
  (I)  "SMART  GRID  ADVISORY  COUNCIL"  MEANS THE GROUP OF STAKEHOLDERS
FORMED  PURSUANT  TO  PARAGRAPH  (A)  OF  SUBDIVISION  TWO  OF   SECTION
SIXTY-SIX-O OF THE PUBLIC SERVICE LAW FOR PURPOSES OF ADVISING AND WORK-
ING  WITH  THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY OF
THE DEVELOPMENT AND IMPLEMENTATION OF A  SMART  GRID  ADVANCED  METERING
INFRASTRUCTURE DEPLOYMENT PLAN.
  (J)  "WORKFORCE  DEVELOPMENT"  SHALL  MEAN  TRAINING  INITIATIVES  AND
CURRICULUM SPONSORED BY  TRANSMISSION  AND  DISTRIBUTION  COMPANIES  AND
PUBLIC  POWER AUTHORITIES THAT WILL ENSURE SUFFICIENT STAFFING TO IMPLE-
MENT  THE  GRID  MODERNIZATION  PROGRAMS.  SUCH  WORKFORCE   DEVELOPMENT
PROGRAMS  SHALL  BE UNDERTAKEN THROUGH PARTNERSHIPS WITH STATE UNIVERSI-
TIES, COMMUNITY COLLEGES, BOARDS  OF  COOPERATIVE  EDUCATION  AND  OTHER
ENTITIES ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE FOR THE
PURPOSES OF IMPLEMENTING GRID MODERNIZATION PROGRAMS.
  (K) "COMMISSION" SHALL MEAN THE NEW YORK PUBLIC SERVICE COMMISSION.
  2.  NO  LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION,
THE AUTHORITY, AFTER CONSULTATION WITH  THE  COMMISSION,  THE  NEW  YORK
TRANSMISSION  AND  DISTRIBUTION  COORDINATING COUNCIL AND THE SMART GRID
ADVISORY COUNCIL, SHALL APPROVE A TEN YEAR GRID  MODERNIZATION  PROGRAM.
THE AUTHORITY MAY COLLABORATE WITH ONE OR MORE TRANSMISSION AND DISTRIB-
UTION COMPANIES. THE PROGRAM ESTABLISHED BY THE AUTHORITY SHALL INCORPO-
RATE,  WHERE  FEASIBLE  AND  PRACTICABLE,  FULL  LOAD MUNICIPAL ELECTRIC
CUSTOMERS. SUCH PROGRAM SHALL CONSIST OF:
  (A) HIGH VOLTAGE TRANSMISSION SYSTEM IMPROVEMENTS, INCLUDING  BUT  NOT
LIMITED  TO THE REPLACEMENT OR UPGRADE OF TRANSMISSION FACILITIES AND/OR
TRANSMISSION LINES, WHICH, DUE TO THEIR  YEARS  IN  SERVICE  OR  LIMITED
TRANSFER  CAPACITY  HAVE  CREATED  OR ARE PROJECTED TO CREATE WITHIN TEN
YEARS OF THE EFFECTIVE DATE OF THIS ACT A  SIGNIFICANT  ELECTRIC  SYSTEM
RELIABILITY PROBLEM, OR AS DETERMINED BY THE COMMISSION HAVE CONTRIBUTED
TO  A  SIGNIFICANT  INCREASE  IN  THE WHOLESALE COST OF ELECTRICITY. THE
AUTHORITY SHALL NOT DEVELOP ANY  PLAN  TO  INVEST  IN  NEW  TRANSMISSION
FACILITIES  THAT WOULD REQUIRE THE ACQUISITION OF SUBSTANTIAL NEW RIGHTS
OF WAY.   HIGH VOLTAGE TRANSMISSION  SYSTEM  IMPROVEMENTS  MADE  BY  THE
AUTHORITY PURSUANT TO THIS SECTION SHALL:

A. 2371                            11

  (I)  ENCOURAGE  THE  INTERCONNECTION OF EXISTING AND PROPOSED ELECTRIC
GENERATING FACILITIES, WITH AN EMPHASIS ON  RENEWABLE  ENERGY  TECHNOLO-
GIES, INCLUDING BUT NOT LIMITED TO SOLAR AND WIND;
  (II)  ALLOW  FOR THE ECONOMIC AND COST-EFFECTIVE TRANSMISSION OF ELEC-
TRICITY  FROM  EXISTING  AND  PROPOSED  ELECTRIC  GENERATING  FACILITIES
LOCATED IN NEW YORK TO ENERGY INTENSIVE REGIONS LOCATED WITHIN THE ELEC-
TRIC  TRANSMISSION  SYSTEM  OPERATED BY THE BULK SYSTEM OPERATOR SERVING
THE STATE'S ELECTRIC SYSTEM;
  (III) BE SITED ONLY ON EXISTING TRANSMISSION RIGHTS OF  WAY,  PROVIDED
FURTHER THAT THE ACQUISITION OF ADDITIONAL LANDS PARALLEL TO SUCH RIGHTS
OF WAY BE MINIMAL;
  (IV)  BE  DESIGNED TO REDUCE SUSCEPTIBILITY TO POWER OUTAGES CAUSED BY
EVENTS SUCH AS STORM-RELATED DAMAGE INCLUDING, BUT NOT LIMITED TO,  HIGH
WINDS, THUNDERSTORMS AND ICE STORMS; AND
  (V)  MEET  ANY OTHER STANDARDS FOR ECONOMY AND RELIABILITY ESTABLISHED
BY THE COMMISSION IN DEVELOPING ITS GRID MODERNIZATION PROGRAM  PURSUANT
TO SUBDIVISION FIVE OF SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
  (B)  DISTRIBUTION  SYSTEM  INFRASTRUCTURE  IMPROVEMENTS,  WHICH  SHALL
INCLUDE, WHERE APPLICABLE, BUT NOT BE LIMITED TO UNDERGROUND RESIDENTIAL
DISTRIBUTION CABLE INJECTION  AND  REPLACEMENT,  MAINLINE  CABLE  SYSTEM
REFURBISHMENT   AND  REPLACEMENT,  WOOD  UTILITY  POLE  INSPECTION,  THE
REPLACEMENT OR RELOCATION OR UNDERGROUND CONVERSION OF CERTAIN  CIRCUITS
WHICH  HAVE  BEEN IDENTIFIED BY THE COMMISSION AS SUSCEPTIBLE TO OUTAGES
OR SERVICE DISRUPTION BY EVENTS SUCH AS STORM-RELATED DAMAGE, INCLUDING,
BUT NOT LIMITED TO, HIGH WINDS, THUNDERSTORMS AND ICE  STORMS.  DISTRIB-
UTION  SYSTEM  IMPROVEMENTS  MADE  BY THE AUTHORITY PURSUANT TO THIS ACT
SHALL:
  (I) BE DESIGNED TO REDUCE THE  SUSCEPTIBILITY  TO  ELECTRICAL  OUTAGES
INCLUDING THOSE CAUSED BY EVENTS SUCH AS STORMS;
  (II)  WHERE  POSSIBLE  AND  PRACTICABLE,  BE DESIGNED AND LOCATED IN A
MANNER THAT WILL REDUCE THE RELIANCE ON UTILITY RIGHT OF WAY MAINTENANCE
PRACTICES INCLUDING TREE AND BRUSH CUTTING; AND
  (III) WHERE POSSIBLE AND PRACTICABLE ALLOW FOR AND ENCOURAGE THE INTE-
GRATION OF AMI.
  (C) ENERGY LOW-INCOME ASSISTANCE AND  ENERGY  USAGE  EDUCATION,  WHICH
SHALL INCLUDE, WHERE APPLICABLE, BUT NOT BE LIMITED TO:
  (I)  RESIDENTIAL  AND NON-RESIDENTIAL AND SMALL BUSINESS UTILITY RATE-
PAYER HARDSHIP PROGRAMS;
  (II) GRANTS  AND  OTHER  PAYMENT  CONCESSIONS  TO  DISABLED  VETERANS,
DEFINED  AS  A  VETERAN  WHO HAS RECEIVED A COMPENSATION RATING FROM THE
UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR FROM THE  UNITED  STATES
DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED
IN  THE  LINE  OF DUTY IN THE ACTIVE MILITARY, NAVAL OR AIR SERVICES WHO
DEMONSTRATE A HARDSHIP, A  DISABLED  VETERAN  WHO  BECAME  SEVERELY  AND
PERMANENTLY  DISABLED  AS  A  RESULT  OF  INJURY  OR ILLNESS SUFFERED OR
INCURRED DURING MILITARY TRAINING IN PREPARATION FOR DUTY  IN  A  COMBAT
THEATER  OR  COMBAT  ZONE  OF  OPERATIONS WHO DEMONSTRATE A HARDSHIP AND
MEMBERS OF THE ARMED SERVICES OR A  MEMBER  OF  THE  NATIONAL  GUARD  OR
RESERVE  AS DEFINED IN 10 U.S.C. SECTION 101 (D) (1), OR A MEMBER OF THE
STATE ORGANIZED MILITIA, AND IS CALLED OR ORDERED TO ACTIVE DUTY FOR THE
STATE, AS DEFINED IN SUBDIVISION ONE OF SECTION SIX OF THE MILITARY  LAW
AND WHO DEMONSTRATES A HARDSHIP; AND
  (III)  BUDGET  ASSISTANCE PROGRAMS THAT PROVIDE TOOLS AND EDUCATION TO
AUTHORITY CUSTOMERS WITH AN EMPHASIS ON LOW-INCOME CUSTOMERS AND  SENIOR
CITIZENS  TO  ASSIST  THEM  WITH  OBTAINING INFORMATION REGARDING ENERGY
USAGE AND EFFECTIVE MEANS OF MANAGING ENERGY COSTS.

A. 2371                            12

  (D) ENERGY LOW-INCOME ASSISTANCE AND EDUCATION PROGRAMS MADE  PURSUANT
TO  THIS SECTION SHALL BE DESIGNED TO REDUCE OR PREVENT DISCONNECTION OF
UTILITY SERVICE TO RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS DUE TO  ANY
POTENTIAL INCREASE IN MONTHLY UTILITY BILLS.
  (E) SMART GRID DEPLOYMENT, IF DETERMINED FEASIBLE AND ADVISABLE BY THE
TRUSTEES, WHICH WILL PROVIDE CUSTOMERS WITH THE TECHNOLOGICAL AND EDUCA-
TIONAL RESOURCES TO MATCH PERSONAL ENERGY USAGE TO PERIODS OF REDUCED OR
LOW ELECTRIC DEMAND WITHIN THEIR RESPECTIVE COMPANY'S SERVICE TERRITORY.
SMART  GRID  INFRASTRUCTURE  DEPLOYMENT  MADE  PURSUANT  TO THIS SECTION
SHALL:
  (I) BE DESIGNED TO ALLOW FOR ELECTRIC CUSTOMERS  TO  OBTAIN  REAL-TIME
RETAIL ELECTRIC PRICING DATA AND CONSUMER DEMAND DATA WITHIN THE AUTHOR-
ITY'S  SERVICE  TERRITORY  THROUGH  THE  INSTALLATION  OF AMI, WHICH MAY
INCLUDE SMART METERS OR INTERACTIVE CONSUMER SOFTWARE AND COMMUNICATIONS
APPLICATIONS;
  (II) PROTECT CUSTOMER PRIVACY, INCLUDING PERSONAL  FINANCIAL  INFORMA-
TION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE;
  (III)  ALLOW  ANY  CUSTOMER  OF  THE  AUTHORITY, AT NO PENALTY, FEE OR
SERVICE CHARGE, TO DECLINE THE PERMISSION OF THE AUTHORITY TO REPLACE  A
CURRENT METER WITH AN AMI DEVICE OR INSTALL ANY AMI DEVICE AT HIS OR HER
PROPERTY FOR THE MEASUREMENT OF AND STORAGE OF ELECTRIC USAGE DATA;
  (IV) ACCOMMODATE AND ENCOURAGE THE USE OF SMART APPLIANCES AND PLUG-IN
OR HYBRID ELECTRIC VEHICLES; AND
  (V)  INCLUDE  INITIATIVES  TO EDUCATE CONSUMERS ON THE PROPER USAGE OF
TECHNOLOGIES WITH THE AIM OF PROMOTING  SYSTEM-WIDE  REDUCTION  OF  PEAK
ENERGY USAGE.
  (F)  THE  GRID  MODERNIZATION PROGRAM DEVELOPED BY THE AUTHORITY SHALL
ENSURE THAT THE AUTHORITY WILL RECRUIT AND MAINTAIN  ADEQUATE  CERTIFIED
FULL-TIME  AND  PART-TIME  EMPLOYEES AND CONTRACTED WORKERS TO CARRY OUT
THE REQUIREMENTS PURSUANT TO PARAGRAPHS (A), (B) AND (E) OF THIS  SUBDI-
VISION.    WORKFORCE DEVELOPMENT PROGRAMS MADE PURSUANT TO THIS SUBDIVI-
SION SHALL:
  (I) REQUIRE THE AUTHORITY TO MAINTAIN AT A MINIMUM, ONE INSTATE TRAIN-
ING FACILITY FOR THE PURPOSES OF PROVIDING FULL-TIME, PART-TIME  EMPLOY-
EES AND CONTRACTED WORKERS ANY NECESSARY INSTRUCTION AND HANDS-ON TRAIN-
ING REQUIRED FOR SMART GRID DEPLOYMENT MADE PURSUANT TO THIS SECTION;
  (II)  REQUIRE  THE AUTHORITY TO CREATE A TUITION AND FINANCIAL ASSIST-
ANCE FUND TO COVER THE  COSTS  OF  TRAINING  PROSPECTIVE  FULL-TIME  AND
PART-TIME  EMPLOYEES  AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES,
COMMUNITY COLLEGES, BOARDS OF COOPERATIVE EDUCATION AND  OTHER  ENTITIES
ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE;
  (III)  REQUIRE THE AUTHORITY TO DEVELOP WORKFORCE RECRUITMENT PROGRAMS
TO ENSURE THAT IT MAINTAINS SUFFICIENT FULL-TIME AND PART-TIME EMPLOYEES
TO OFFSET ANY POTENTIAL WORKFORCE REDUCTIONS ATTRIBUTABLE TO RETIREMENT.
  3. THE GRID MODERNIZATION PROGRAM  SHALL  PROMOTE  THE  SUSTAINED  AND
ORDERLY  DEVELOPMENT  OF  THE  STATEWIDE ELECTRIC POWER GRID AND PROTECT
RATEPAYERS FROM SIGNIFICANT RETAIL ELECTRIC PRICE INCREASES. THE AUTHOR-
ITY'S GRID MODERNIZATION PROGRAM SHALL:
  (A) BE DESIGNED TO INCLUDE A TEN YEAR GRID MODERNIZATION STRATEGY WITH
ANNUAL INVESTMENT TARGETS; REBATES FOR HOUSEHOLDS  ELIGIBLE  FOR  ENERGY
LOW-INCOME  ASSISTANCE;  CONSUMER  EDUCATION  AND  WORKFORCE DEVELOPMENT
PLANS; ADVANCED METER INFRASTRUCTURE DEPLOYMENT PLANS FOR CUSTOMERS WITH
ELECTRICITY DEMANDS LESS THAN THREE HUNDRED  KILOWATT  HOURS;  WORKFORCE
DEVELOPMENT,  AND  CYBER  SECURITY SYSTEMS TO PROTECT CUSTOMER FINANCIAL
INFORMATION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE.

A. 2371                            13

  (B) THE TOTAL EXPENDITURES UNDERTAKEN BY  THE  AUTHORITY  FOR  CAPITAL
INVESTMENTS UNDERTAKEN PURSUANT TO THIS SECTION SHALL NOT INCREASE ELEC-
TRIC  RATES  FOR  AUTHORITY CUSTOMERS ABOVE TWO AND ONE-HALF PERCENT. IN
THE EVENT THAT SUCH CAP WOULD BE EXCEEDED, THE AUTHORITY MAY  AS  DEEMED
FEASIBLE  AND  ADVISABLE  BY  THE  TRUSTEES,  REDUCE EXPENDITURES IN THE
FOLLOWING REPORTING YEAR  TO  A  LEVEL  SUFFICIENT  FOR  ACHIEVING  GRID
MODERNIZATION BENCHMARKS WITHOUT SIGNIFICANT IMPACT TO RATEPAYERS.
  (C)  NO  LATER  THAN JULY FIRST, TWO THOUSAND SEVENTEEN, AND EVERY TWO
YEARS THEREAFTER, THE AUTHORITY SHALL SUBMIT TO THE GOVERNOR, THE TEMPO-
RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR  OF
THE  SENATE  COMMITTEE ON ENERGY AND TELECOMMUNICATIONS AND THE CHAIR OF
THE ASSEMBLY COMMITTEE ON ENERGY A COMPREHENSIVE REVIEW OF  THE  PROGRAM
ESTABLISHED  PURSUANT  TO  THIS SECTION. THE REPORT, AMONG OTHER MATTERS
SHALL CONTAIN:
  (I) AN ANALYSIS OF THE AUTHORITY'S PROGRESS MEETING OBLIGATIONS PURSU-
ANT TO THIS ACT AND PROGRESS IN MEETING THE OVERALL ANNUAL  TARGETS  FOR
MODERNIZATION; AND
  (II) ANNUAL COMMITMENTS AND EXPENDITURES.
  S  7.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
to read as follows:
  S  1020-II.  ESTABLISHMENT  OF  GRID MODERNIZATION PROGRAM.   1. DEFI-
NITIONS. AS USED IN THIS SECTION:
  (A) "ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANY" OR  "TRANSMISSION
AND  DISTRIBUTION  COMPANY"  SHALL BE KNOWN AS AN INVESTOR-OWNED UTILITY
HAVING ANNUAL REVENUES IN EXCESS OF TWO  HUNDRED  MILLION  DOLLARS  THAT
TRANSMITS  AND  DISTRIBUTES  ELECTRICITY  WITHIN THIS STATE OR A MUNICI-
PALITY THAT DISTRIBUTES ELECTRICITY AND RECEIVES LESS  THAN  ITS  ENTIRE
ELECTRIC SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK AND IS
SUBJECT TO THE JURISDICTION OF THE COMMISSION WITH RESPECTS TO THE REGU-
LATION OF THE PRICE OF ELECTRICITY.
  (B)  "FULL LOAD MUNICIPAL ELECTRIC CUSTOMER" SHALL BE KNOWN AS A MUNI-
CIPALITY THAT DISTRIBUTES ELECTRICITY AND RECEIVES ITS  ENTIRE  ELECTRIC
SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK.
  (C)  "COOPERATIVE" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED
IN SUBDIVISION (A) OF SECTION TWO OF THE RURAL ELECTRIC COOPERATIVE LAW.
  (D) "PUBLIC POWER AUTHORITIES" SHALL BE KNOWN AS THE  POWER  AUTHORITY
OF THE STATE OF NEW YORK AND THE LONG ISLAND POWER AUTHORITY.
  (E)  "NEW  YORK TRANSMISSION AND DISTRIBUTION COORDINATING COUNCIL" OR
"TRANSMISSION COUNCIL" SHALL BE KNOWN AS A  CONSORTIUM  WHICH  SHALL  BE
FORMED  PURSUANT  TO  SUBDIVISION  THREE  OF  SECTION SIXTY-SIX-O OF THE
PUBLIC SERVICE LAW FOR THE PURPOSE OF IDENTIFYING  AREAS  OF  ELECTRICAL
CONGESTION  WITHIN  NEW YORK'S HIGH VOLTAGE TRANSMISSION SYSTEM COMPRIS-
ING:
  (I) CONSOLIDATED EDISON, ORANGE AND ROCKLAND UTILITIES, CENTRAL HUDSON
GAS AND ELECTRIC, NIAGARA MOHAWK D/B/A NATIONAL  GRID,  NEW  YORK  STATE
ELECTRIC AND GAS AND ROCHESTER GAS AND ELECTRIC;
  (II) PUBLIC POWER AUTHORITIES; AND
  (III) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  (F)  "NEW  YORK'S  HIGH  VOLTAGE TRANSMISSION SYSTEM" OR "HIGH VOLTAGE
TRANSMISSION SYSTEM" SHALL MEAN ELECTRIC TRANSMISSION LINES AS  REFERRED
TO  IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE HUNDRED TWENTY OF
THE PUBLIC SERVICE LAW, PROVIDED THAT ELECTRIC TRANSMISSION LINES  SHALL
ALSO INCLUDE ELECTRIC TRANSMISSION LINES LOCATED WHOLLY UNDERGROUND IN A
CITY  IN EXCESS OF ONE HUNDRED TWENTY-FIVE THOUSAND PERSONS OR A PRIMARY

A. 2371                            14

TRANSMISSION LINE APPROVED BY THE FEDERAL ENERGY  REGULATORY  COMMISSION
IN  CONNECTION WITH A HYDRO-ELECTRIC FACILITY AND OTHER EQUIPMENT NECES-
SARY FOR ELECTRIC TRANSMISSION.
  (G)  "SMART  GRID"  SHALL  BE  KNOWN  AS INVESTMENTS AND POLICIES THAT
TOGETHER PROMOTE ONE OR MORE OF THE FOLLOWING GOALS:
  (I) INCREASED USE OF DIGITAL INFORMATION AND  CONTROLS  TECHNOLOGY  TO
IMPROVE RELIABILITY, SECURITY AND EFFICIENCY OF THE ELECTRIC GRID;
  (II)  DYNAMIC OPTIMIZATION OF GRID OPERATIONS AND RESOURCES, WITH FULL
CYBER SECURITY;
  (III) DEPLOYMENT AND INTEGRATION OF DISTRIBUTED RESOURCES  AND  GENER-
ATION, INCLUDING RENEWABLE RESOURCES;
  (IV)  DEVELOPMENT  AND  INCORPORATION  OF DEMAND-RESPONSE, DEMAND-SIDE
RESOURCES, AND ENERGY EFFICIENCY RESOURCES;
  (V) DEPLOYMENT OF "SMART" TECHNOLOGIES, REAL-TIME, AUTOMATED, INTERAC-
TIVE TECHNOLOGIES THAT OPTIMIZE THE PHYSICAL OPERATION OF APPLIANCES AND
CONSUMER DEVICES FOR METERING, COMMUNICATIONS CONCERNING GRID OPERATIONS
AND STATUS, AND DISTRIBUTION AUTOMATION;
  (VI) INTEGRATION OF "SMART" APPLIANCES AND CONSUMER DEVICES;
  (VII) DEPLOYMENT AND INTEGRATION OF ADVANCED ELECTRICITY  STORAGE  AND
PEAK-SHAVING  TECHNOLOGIES,  INCLUDING PLUG-IN ELECTRIC AND HYBRID ELEC-
TRIC VEHICLES, THERMAL-STORAGE AIR  CONDITIONING  AND  RENEWABLE  ENERGY
GENERATION;
  (VIII)  PROVISION  TO  CONSUMERS  OF  TIMELY  INFORMATION  AND CONTROL
OPTIONS;
  (IX) DEVELOPMENT OF OPEN ACCESS STANDARDS FOR COMMUNICATION AND INTER-
OPERABILITY OF APPLIANCES AND EQUIPMENT CONNECTED TO THE ELECTRIC  GRID,
INCLUDING THE INFRASTRUCTURE SERVING THE GRID;
  (X)  IDENTIFICATION AND LOWERING OF UNREASONABLE OR UNNECESSARY BARRI-
ERS TO ADOPTION OF SMART GRID  TECHNOLOGIES,  PRACTICES,  SERVICES,  AND
BUSINESS  MODELS  THAT  SUPPORT  ENERGY EFFICIENCY, DEMAND-RESPONSE, AND
DISTRIBUTED GENERATION; AND
  (XI) ADVANCED METERING INFRASTRUCTURE.
  (H) "ADVANCED METERING INFRASTRUCTURE" OR "AMI" SHALL BE KNOWN AS  THE
COMMUNICATIONS HARDWARE AND SOFTWARE AND ASSOCIATED SYSTEM SOFTWARE THAT
IS  DESIGNED  TO  CREATE  A NETWORK BETWEEN ADVANCED METERS AND ELECTRIC
TRANSMISSION AND DISTRIBUTION COMPANY SYSTEMS AND ALLOW  FOR  COLLECTION
AND  DISTRIBUTION  OF  INFORMATION  TO  CUSTOMERS  AND  OTHER AUTHORIZED
PARTIES  IN  ADDITION  TO  PROVIDING  INFORMATION  TO  TRANSMISSION  AND
DISTRIBUTION COMPANIES.
  (I)  "SMART  GRID  ADVISORY  COUNCIL"  MEANS THE GROUP OF STAKEHOLDERS
FORMED  PURSUANT  TO  PARAGRAPH  (A)  OF  SUBDIVISION  TWO  OF   SECTION
SIXTY-SIX-O OF THE PUBLIC SERVICE LAW FOR PURPOSES OF ADVISING AND WORK-
ING  WITH  THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY OF
THE DEVELOPMENT AND IMPLEMENTATION OF A  SMART  GRID  ADVANCED  METERING
INFRASTRUCTURE DEPLOYMENT PLAN.
  (J)  "WORKFORCE  DEVELOPMENT"  SHALL  MEAN  TRAINING  INITIATIVES  AND
CURRICULUM SPONSORED BY  TRANSMISSION  AND  DISTRIBUTION  COMPANIES  AND
PUBLIC  POWER AUTHORITIES THAT WILL ENSURE SUFFICIENT STAFFING TO IMPLE-
MENT  THE  GRID  MODERNIZATION  PROGRAMS.  SUCH  WORKFORCE   DEVELOPMENT
PROGRAMS  SHALL  BE UNDERTAKEN THROUGH PARTNERSHIPS WITH STATE UNIVERSI-
TIES, COMMUNITY COLLEGES, BOARDS  OF  COOPERATIVE  EDUCATION  AND  OTHER
ENTITIES ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE FOR THE
PURPOSES OF IMPLEMENTING GRID MODERNIZATION PROGRAMS.
  (K) "COMMISSION" SHALL MEAN THE NEW YORK PUBLIC SERVICE COMMISSION.
  2.  NO  LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION,
THE AUTHORITY, AFTER CONSULTATION WITH  THE  COMMISSION,  THE  NEW  YORK

A. 2371                            15

TRANSMISSION  AND  DISTRIBUTION  COORDINATING COUNCIL AND THE SMART GRID
ADVISORY COUNCIL, SHALL APPROVE A TEN YEAR GRID  MODERNIZATION  PROGRAM.
THE AUTHORITY MAY COLLABORATE WITH ONE OR MORE TRANSMISSION AND DISTRIB-
UTION COMPANIES. THE PROGRAM ESTABLISHED BY THE AUTHORITY SHALL INCORPO-
RATE,  WHERE  FEASIBLE  AND  PRACTICABLE,  FULL  LOAD MUNICIPAL ELECTRIC
CUSTOMERS. SUCH PROGRAM SHALL CONSIST OF:
  (A) HIGH VOLTAGE TRANSMISSION SYSTEM IMPROVEMENTS, INCLUDING  BUT  NOT
BE  LIMITED  TO  THE  REPLACEMENT  OR UPGRADE OF TRANSMISSION FACILITIES
AND/OR TRANSMISSION LINES, WHICH, DUE  TO  THEIR  YEARS  IN  SERVICE  OR
LIMITED TRANSFER CAPACITY HAVE CREATED OR ARE PROJECTED TO CREATE WITHIN
TEN  YEARS  OF  THE  EFFECTIVE  DATE  OF THIS ACT A SIGNIFICANT ELECTRIC
SYSTEM RELIABILITY PROBLEM, OR AS  DETERMINED  BY  THE  COMMISSION  HAVE
CONTRIBUTED TO A SIGNIFICANT INCREASE IN THE WHOLESALE COST OF ELECTRIC-
ITY.  THE  AUTHORITY  SHALL NOT DEVELOP ANY PLAN TO INVEST IN NEW TRANS-
MISSION FACILITIES THAT WOULD REQUIRE THE ACQUISITION OF SUBSTANTIAL NEW
RIGHTS OF WAY.  HIGH VOLTAGE TRANSMISSION SYSTEM  IMPROVEMENTS  MADE  BY
THE AUTHORITY PURSUANT TO THIS SECTION SHALL:
  (I)  ENCOURAGE  THE  INTERCONNECTION OF EXISTING AND PROPOSED ELECTRIC
GENERATING FACILITIES, WITH AN EMPHASIS ON  RENEWABLE  ENERGY  TECHNOLO-
GIES, INCLUDING BUT NOT LIMITED TO SOLAR AND WIND;
  (II)  ALLOW  FOR THE ECONOMIC AND COST-EFFECTIVE TRANSMISSION OF ELEC-
TRICITY  FROM  EXISTING  AND  PROPOSED  ELECTRIC  GENERATING  FACILITIES
LOCATED IN NEW YORK TO ENERGY INTENSIVE REGIONS LOCATED WITHIN THE ELEC-
TRIC  TRANSMISSION  SYSTEM  OPERATED BY THE BULK SYSTEM OPERATOR SERVING
THE STATE'S ELECTRIC SYSTEM;
  (III) BE SITED ONLY ON EXISTING TRANSMISSION RIGHTS OF  WAY,  PROVIDED
FURTHER THAT THE ACQUISITION OF ADDITIONAL LANDS PARALLEL TO SUCH RIGHTS
OF WAY BE MINIMAL;
  (IV)  BE  DESIGNED TO REDUCE SUSCEPTIBILITY TO POWER OUTAGES CAUSED BY
EVENTS SUCH AS STORM-RELATED DAMAGE INCLUDING, BUT NOT LIMITED TO,  HIGH
WINDS, THUNDERSTORMS AND ICE STORMS; AND
  (V)  MEET  ANY OTHER STANDARDS FOR ECONOMY AND RELIABILITY ESTABLISHED
BY THE COMMISSION IN DEVELOPING ITS GRID MODERNIZATION PROGRAM  PURSUANT
TO SUBDIVISION FIVE OF SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
  (B)  DISTRIBUTION  SYSTEM  INFRASTRUCTURE  IMPROVEMENTS,  WHICH  SHALL
INCLUDE, WHERE APPLICABLE, BUT NOT BE LIMITED TO UNDERGROUND RESIDENTIAL
DISTRIBUTION CABLE INJECTION  AND  REPLACEMENT,  MAINLINE  CABLE  SYSTEM
REFURBISHMENT   AND  REPLACEMENT,  WOOD  UTILITY  POLE  INSPECTION,  THE
REPLACEMENT OR RELOCATION OR UNDERGROUND CONVERSION OF CERTAIN  CIRCUITS
WHICH  HAVE  BEEN IDENTIFIED BY THE COMMISSION AS SUSCEPTIBLE TO OUTAGES
OR SERVICE DISRUPTION BY EVENTS SUCH AS STORM-RELATED DAMAGE, INCLUDING,
BUT NOT LIMITED TO, HIGH WINDS, THUNDERSTORMS AND ICE  STORMS.  DISTRIB-
UTION SYSTEM IMPROVEMENTS MADE BY THE AUTHORITY PURSUANT TO THIS SECTION
SHALL:
  (I)  BE  DESIGNED  TO  REDUCE THE SUSCEPTIBILITY TO ELECTRICAL OUTAGES
INCLUDING THOSE CAUSED BY EVENTS SUCH AS STORMS;
  (II) WHERE POSSIBLE AND PRACTICABLE, BE  DESIGNED  AND  LOCATED  IN  A
MANNER THAT WILL REDUCE THE RELIANCE ON UTILITY RIGHT OF WAY MAINTENANCE
PRACTICES INCLUDING TREE AND BRUSH CUTTING; AND
  (III) WHERE POSSIBLE AND PRACTICABLE ALLOW FOR AND ENCOURAGE THE INTE-
GRATION OF AMI.
  (C)  ENERGY  LOW-INCOME  ASSISTANCE  AND ENERGY USAGE EDUCATION, WHICH
SHALL INCLUDE, WHERE APPLICABLE, BUT NOT BE LIMITED TO:
  (I) RESIDENTIAL AND NON-RESIDENTIAL AND SMALL BUSINESS  UTILITY  RATE-
PAYER HARDSHIP PROGRAMS;

A. 2371                            16

  (II)  GRANTS  AND  OTHER  PAYMENT  CONCESSIONS  TO  DISABLED VETERANS,
DEFINED AS A VETERAN WHO HAS RECEIVED A  COMPENSATION  RATING  FROM  THE
UNITED  STATES  DEPARTMENT OF VETERANS AFFAIRS OR FROM THE UNITED STATES
DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED
IN  THE  LINE  OF DUTY IN THE ACTIVE MILITARY, NAVAL OR AIR SERVICES WHO
DEMONSTRATE A HARDSHIP, A  DISABLED  VETERAN  WHO  BECAME  SEVERELY  AND
PERMANENTLY  DISABLED  AS  A  RESULT  OF  INJURY  OR ILLNESS SUFFERED OR
INCURRED DURING MILITARY TRAINING IN PREPARATION FOR DUTY  IN  A  COMBAT
THEATER  OR  COMBAT  ZONE  OF  OPERATIONS WHO DEMONSTRATE A HARDSHIP AND
MEMBERS OF THE ARMED SERVICES OR A  MEMBER  OF  THE  NATIONAL  GUARD  OR
RESERVE  AS DEFINED IN 10 U.S.C. SECTION 101 (D) (1), OR A MEMBER OF THE
STATE ORGANIZED MILITIA, AND IS CALLED OR ORDERED TO ACTIVE DUTY FOR THE
STATE, AS DEFINED IN SUBDIVISION ONE OF SECTION SIX OF THE MILITARY  LAW
AND WHO DEMONSTRATES A HARDSHIP; AND
  (III)  BUDGET  ASSISTANCE PROGRAMS THAT PROVIDE TOOLS AND EDUCATION TO
AUTHORITY CUSTOMERS WITH AN EMPHASIS ON LOW-INCOME CUSTOMERS AND  SENIOR
CITIZENS  TO  ASSIST  THEM  WITH  OBTAINING INFORMATION REGARDING ENERGY
USAGE AND EFFECTIVE MEANS OF MANAGING ENERGY COSTS.
  (D) ENERGY LOW-INCOME ASSISTANCE AND EDUCATION PROGRAMS MADE  PURSUANT
TO  THIS SECTION SHALL BE DESIGNED TO REDUCE OR PREVENT DISCONNECTION OF
UTILITY SERVICE TO RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS DUE TO  ANY
POTENTIAL INCREASE IN MONTHLY UTILITY BILLS.
  (E) SMART GRID DEPLOYMENT, IF DETERMINED FEASIBLE AND ADVISABLE BY THE
TRUSTEES, WHICH WILL PROVIDE CUSTOMERS WITH THE TECHNOLOGICAL AND EDUCA-
TIONAL RESOURCES TO MATCH PERSONAL ENERGY USAGE TO PERIODS OF REDUCED OR
LOW ELECTRIC DEMAND WITHIN THEIR RESPECTIVE COMPANY'S SERVICE TERRITORY.
SMART  GRID  INFRASTRUCTURE  DEPLOYMENT  MADE  PURSUANT  TO THIS SECTION
SHALL:
  (I) BE DESIGNED TO ALLOW FOR ELECTRIC CUSTOMERS  TO  OBTAIN  REAL-TIME
RETAIL ELECTRIC PRICING DATA AND CONSUMER DEMAND DATA WITHIN THE AUTHOR-
ITY'S  SERVICE  TERRITORY  THROUGH  THE  INSTALLATION  OF AMI, WHICH MAY
INCLUDE SMART METERS OR INTERACTIVE CONSUMER SOFTWARE AND COMMUNICATIONS
APPLICATIONS;
  (II) PROTECT CUSTOMER PRIVACY, INCLUDING PERSONAL  FINANCIAL  INFORMA-
TION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE;
  (III)  ALLOW  ANY  CUSTOMER  OF  THE  AUTHORITY, AT NO PENALTY, FEE OR
SERVICE CHARGE, TO DECLINE THE PERMISSION OF THE AUTHORITY TO REPLACE  A
CURRENT METER WITH AN AMI DEVICE OR INSTALL ANY AMI DEVICE AT HIS OR HER
PROPERTY FOR THE MEASUREMENT OF AND STORAGE OF ELECTRIC USAGE DATA;
  (IV) ACCOMMODATE AND ENCOURAGE THE USE OF SMART APPLIANCES AND PLUG-IN
OR HYBRID ELECTRIC VEHICLES; AND
  (V)  INCLUDE  INITIATIVES  TO EDUCATE CONSUMERS ON THE PROPER USAGE OF
TECHNOLOGIES WITH THE AIM OF PROMOTING  SYSTEM-WIDE  REDUCTION  OF  PEAK
ENERGY USAGE.
  (F)  THE  GRID  MODERNIZATION PROGRAM DEVELOPED BY THE AUTHORITY SHALL
ENSURE THAT THE AUTHORITY WILL RECRUIT AND MAINTAIN  ADEQUATE  CERTIFIED
FULL-TIME  AND  PART-TIME  EMPLOYEES AND CONTRACTED WORKERS TO CARRY OUT
THE REQUIREMENTS PURSUANT TO PARAGRAPHS (A), (B) AND (E) OF THIS  SUBDI-
VISION.    WORKFORCE DEVELOPMENT PROGRAMS MADE PURSUANT TO THIS SUBDIVI-
SION SHALL:
  (I) REQUIRE THE AUTHORITY TO MAINTAIN AT A MINIMUM, ONE INSTATE TRAIN-
ING FACILITY FOR THE PURPOSES OF PROVIDING FULL-TIME, PART-TIME  EMPLOY-
EES AND CONTRACTED WORKERS ANY NECESSARY INSTRUCTION AND HANDS-ON TRAIN-
ING REQUIRED FOR SMART GRID DEPLOYMENT MADE PURSUANT TO THIS SECTION;
  (II)  REQUIRE  THE AUTHORITY TO CREATE A TUITION AND FINANCIAL ASSIST-
ANCE FUND TO COVER THE  COSTS  OF  TRAINING  PROSPECTIVE  FULL-TIME  AND

A. 2371                            17

PART-TIME  EMPLOYEES  AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES,
COMMUNITY COLLEGES, BOARDS OF COOPERATIVE EDUCATION AND  OTHER  ENTITIES
ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE;
  (III)  REQUIRE THE AUTHORITY TO DEVELOP WORKFORCE RECRUITMENT PROGRAMS
TO ENSURE THAT IT MAINTAINS SUFFICIENT FULL-TIME AND PART-TIME EMPLOYEES
TO OFFSET ANY POTENTIAL WORKFORCE REDUCTIONS ATTRIBUTABLE TO RETIREMENT.
  3. THE GRID MODERNIZATION PROGRAM  SHALL  PROMOTE  THE  SUSTAINED  AND
ORDERLY  DEVELOPMENT  OF  THE  STATEWIDE ELECTRIC POWER GRID AND PROTECT
RATEPAYERS FROM SIGNIFICANT RETAIL ELECTRIC PRICE INCREASES. THE AUTHOR-
ITY'S GRID MODERNIZATION PROGRAM SHALL:
  (A) BE DESIGNED TO INCLUDE A TEN YEAR GRID MODERNIZATION STRATEGY WITH
ANNUAL INVESTMENT TARGETS; REBATES FOR HOUSEHOLDS  ELIGIBLE  FOR  ENERGY
LOW-INCOME  ASSISTANCE;  CONSUMER  EDUCATION  AND  WORKFORCE DEVELOPMENT
PLANS; ADVANCED METER INFRASTRUCTURE DEPLOYMENT PLANS FOR CUSTOMERS WITH
ELECTRICITY DEMANDS LESS THAN THREE HUNDRED  KILOWATT  HOURS;  WORKFORCE
DEVELOPMENT,  AND  CYBER  SECURITY SYSTEMS TO PROTECT CUSTOMER FINANCIAL
INFORMATION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE.
  (B) THE TOTAL EXPENDITURES UNDERTAKEN BY  THE  AUTHORITY  FOR  CAPITAL
INVESTMENTS UNDERTAKEN PURSUANT TO THIS SECTION SHALL NOT INCREASE ELEC-
TRIC  RATES  FOR  AUTHORITY CUSTOMERS ABOVE TWO AND ONE-HALF PERCENT. IN
THE EVENT THAT SUCH CAP WOULD BE EXCEEDED, THE AUTHORITY MAY  AS  DEEMED
FEASIBLE  AND  ADVISABLE  BY  THE  TRUSTEES,  REDUCE EXPENDITURES IN THE
FOLLOWING REPORTING YEAR  TO  A  LEVEL  SUFFICIENT  FOR  ACHIEVING  GRID
MODERNIZATION BENCHMARKS WITHOUT SIGNIFICANT IMPACT TO RATEPAYERS.
  (C)  NO  LATER  THAN JULY FIRST, TWO THOUSAND SEVENTEEN, AND EVERY TWO
YEARS THEREAFTER, THE AUTHORITY SHALL SUBMIT TO THE GOVERNOR, THE TEMPO-
RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR  OF
THE  SENATE  COMMITTEE ON ENERGY AND TELECOMMUNICATIONS AND THE CHAIR OF
THE ASSEMBLY COMMITTEE ON ENERGY A COMPREHENSIVE REVIEW OF  THE  PROGRAM
ESTABLISHED  PURSUANT  TO  THIS SECTION. THE REPORT, AMONG OTHER MATTERS
SHALL CONTAIN:
  (I) AN ANALYSIS OF THE AUTHORITY'S PROGRESS MEETING OBLIGATIONS PURSU-
ANT TO THIS ACT AND PROGRESS IN MEETING THE OVERALL ANNUAL  TARGETS  FOR
MODERNIZATION; AND
  (II) ANNUAL COMMITMENTS AND EXPENDITURES.
  S  8.  Article  7  of the rural electric cooperative law is renumbered
article 8 and sections 70, 71 and 72 of such law are renumbered sections
80, 81 and 82.
  S 9. The rural electric cooperative law is amended  by  adding  a  new
article 7 to read as follows:
                                ARTICLE 7
               ESTABLISHMENT OF GRID MODERNIZATION PROGRAM
SECTION 70. ESTABLISHMENT OF GRID MODERNIZATION PROGRAM.
  S  70. ESTABLISHMENT OF GRID MODERNIZATION PROGRAM. 1. DEFINITIONS. AS
USED IN THIS SECTION:
  (A) "ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANY" OR  "TRANSMISSION
AND  DISTRIBUTION  COMPANY"  SHALL BE KNOWN AS AN INVESTOR-OWNED UTILITY
HAVING ANNUAL REVENUES IN EXCESS OF TWO  HUNDRED  MILLION  DOLLARS  THAT
TRANSMITS  AND  DISTRIBUTES  ELECTRICITY  WITHIN THIS STATE OR A MUNICI-
PALITY THAT DISTRIBUTES ELECTRICITY AND RECEIVES LESS  THAN  ITS  ENTIRE
ELECTRIC SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK AND IS
SUBJECT  TO THE JURISDICTION OF THE COMMISSION WITH RESPECT TO THE REGU-
LATION OF THE PRICE OF ELECTRICITY.
  (B) "FULL LOAD MUNICIPAL ELECTRIC CUSTOMER" SHALL BE KNOWN AS A  MUNI-
CIPALITY  THAT  DISTRIBUTES ELECTRICITY AND RECEIVES ITS ENTIRE ELECTRIC
SUPPLY FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK.

A. 2371                            18

  (C) "PUBLIC POWER AUTHORITIES" SHALL BE KNOWN AS THE  POWER  AUTHORITY
OF THE STATE OF NEW YORK AND THE LONG ISLAND POWER AUTHORITY.
  (D)  "NEW  YORK TRANSMISSION AND DISTRIBUTION COORDINATING COUNCIL" OR
"TRANSMISSION COUNCIL" SHALL BE KNOWN AS A  CONSORTIUM  WHICH  SHALL  BE
FORMED  PURSUANT  TO  SUBDIVISION  THREE  OF  SECTION SIXTY-SIX-O OF THE
PUBLIC SERVICE LAW FOR THE PURPOSE OF IDENTIFYING  AREAS  OF  ELECTRICAL
CONGESTION  WITHIN  NEW YORK'S HIGH-VOLTAGE TRANSMISSION SYSTEM COMPRIS-
ING:
  (I) CONSOLIDATED EDISON, ORANGE AND ROCKLAND UTILITIES, CENTRAL HUDSON
GAS AND ELECTRIC, NIAGARA MOHAWK D/B/A NATIONAL  GRID,  NEW  YORK  STATE
ELECTRIC AND GAS AND ROCHESTER GAS AND ELECTRIC;
  (II) PUBLIC POWER AUTHORITIES; AND
  (III) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  (E)  "NEW  YORK'S  HIGH  VOLTAGE TRANSMISSION SYSTEM" OR "HIGH VOLTAGE
TRANSMISSION SYSTEM" SHALL MEAN ELECTRIC TRANSMISSION LINES AS  REFERRED
TO  IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE HUNDRED TWENTY OF
THE PUBLIC SERVICE LAW, PROVIDED THAT ELECTRIC TRANSMISSION LINES  SHALL
ALSO INCLUDE ELECTRIC TRANSMISSION LINES LOCATED WHOLLY UNDERGROUND IN A
CITY  IN EXCESS OF ONE HUNDRED TWENTY-FIVE THOUSAND PERSONS OR A PRIMARY
TRANSMISSION LINE APPROVED BY THE FEDERAL ENERGY  REGULATORY  COMMISSION
IN  CONNECTION WITH A HYDRO-ELECTRIC FACILITY AND OTHER EQUIPMENT NECES-
SARY FOR ELECTRIC TRANSMISSION.
  (F) "SMART GRID" SHALL BE  KNOWN  AS  INVESTMENTS  AND  POLICIES  THAT
TOGETHER PROMOTE ONE OR MORE OF THE FOLLOWING GOALS:
  (I)  INCREASED  USE  OF DIGITAL INFORMATION AND CONTROLS TECHNOLOGY TO
IMPROVE RELIABILITY, SECURITY AND EFFICIENCY OF THE ELECTRIC GRID;
  (II) DYNAMIC OPTIMIZATION OF GRID OPERATIONS AND RESOURCES, WITH  FULL
CYBER SECURITY;
  (III)  DEPLOYMENT  AND INTEGRATION OF DISTRIBUTED RESOURCES AND GENER-
ATION, INCLUDING RENEWABLE RESOURCES;
  (IV) DEVELOPMENT AND  INCORPORATION  OF  DEMAND-RESPONSE,  DEMAND-SIDE
RESOURCES, AND ENERGY EFFICIENCY RESOURCES;
  (V) DEPLOYMENT OF "SMART" TECHNOLOGIES, REAL-TIME, AUTOMATED, INTERAC-
TIVE TECHNOLOGIES THAT OPTIMIZE THE PHYSICAL OPERATION OF APPLIANCES AND
CONSUMER DEVICES FOR METERING, COMMUNICATIONS CONCERNING GRID OPERATIONS
AND STATUS, AND DISTRIBUTION AUTOMATION;
  (VI) INTEGRATION OF "SMART" APPLIANCES AND CONSUMER DEVICES;
  (VII)  DEPLOYMENT  AND INTEGRATION OF ADVANCED ELECTRICITY STORAGE AND
PEAK-SHAVING TECHNOLOGIES, INCLUDING PLUG-IN ELECTRIC AND  HYBRID  ELEC-
TRIC  VEHICLES,  THERMAL-STORAGE  AIR  CONDITIONING AND RENEWABLE ENERGY
GENERATION;
  (VIII) PROVISION  TO  CONSUMERS  OF  TIMELY  INFORMATION  AND  CONTROL
OPTIONS;
  (IX) DEVELOPMENT OF OPEN ACCESS STANDARDS FOR COMMUNICATION AND INTER-
OPERABILITY  OF APPLIANCES AND EQUIPMENT CONNECTED TO THE ELECTRIC GRID,
INCLUDING THE INFRASTRUCTURE SERVING THE GRID;
  (X) IDENTIFICATION AND LOWERING OF UNREASONABLE OR UNNECESSARY  BARRI-
ERS  TO  ADOPTION  OF  SMART GRID TECHNOLOGIES, PRACTICES, SERVICES, AND
BUSINESS MODELS THAT SUPPORT  ENERGY  EFFICIENCY,  DEMAND-RESPONSE,  AND
DISTRIBUTED GENERATION; AND
  (XI) ADVANCED METERING INFRASTRUCTURE.
  (G)  "ADVANCED METERING INFRASTRUCTURE" OR "AMI" SHALL BE KNOWN AS THE
COMMUNICATIONS HARDWARE AND SOFTWARE AND ASSOCIATED SYSTEM SOFTWARE THAT
IS DESIGNED TO CREATE A NETWORK BETWEEN  ADVANCED  METERS  AND  ELECTRIC
TRANSMISSION  AND  DISTRIBUTION COMPANY SYSTEMS AND ALLOW FOR COLLECTION
AND DISTRIBUTION  OF  INFORMATION  TO  CUSTOMERS  AND  OTHER  AUTHORIZED

A. 2371                            19

PARTIES  IN  ADDITION  TO  PROVIDING  INFORMATION  TO  TRANSMISSION  AND
DISTRIBUTION COMPANIES.
  (H)  "SMART  GRID  ADVISORY  COUNCIL"  MEANS THE GROUP OF STAKEHOLDERS
FORMED  PURSUANT  TO  PARAGRAPH  (A)  OF  SUBDIVISION  TWO  OF   SECTION
SIXTY-SIX-O OF THE PUBLIC SERVICE LAW FOR PURPOSES OF ADVISING AND WORK-
ING  WITH  THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY OF
THE DEVELOPMENT AND IMPLEMENTATION OF A  SMART  GRID  ADVANCED  METERING
INFRASTRUCTURE DEPLOYMENT PLAN.
  (I)  "WORKFORCE  DEVELOPMENT"  SHALL  MEAN  TRAINING  INITIATIVES  AND
CURRICULUM SPONSORED BY  TRANSMISSION  AND  DISTRIBUTION  COMPANIES  AND
PUBLIC  POWER AUTHORITIES THAT WILL ENSURE SUFFICIENT STAFFING TO IMPLE-
MENT  THE  GRID  MODERNIZATION  PROGRAMS.  SUCH  WORKFORCE   DEVELOPMENT
PROGRAMS  SHALL  BE UNDERTAKEN THROUGH PARTNERSHIPS WITH STATE UNIVERSI-
TIES, COMMUNITY COLLEGES, BOARDS  OF  COOPERATIVE  EDUCATION  AND  OTHER
ENTITIES ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE FOR THE
PURPOSES OF IMPLEMENTING GRID MODERNIZATION PROGRAMS.
  (J) "COMMISSION" SHALL MEAN THE NEW YORK PUBLIC SERVICE COMMISSION.
  2.  NO  LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION,
EACH COOPERATIVE OPERATING IN NEW  YORK,  AFTER  CONSULTATION  WITH  THE
COMMISSION,  THE  NEW  YORK  TRANSMISSION  AND DISTRIBUTION COORDINATING
COUNCIL AND THE SMART GRID ADVISORY COUNCIL, SHALL APPROVE  A  TEN  YEAR
GRID  MODERNIZATION  PROGRAM,  PROVIDED  THAT SUCH PROGRAM IS CONSISTENT
WITH ANY FEDERAL LAW, RULE OR  REGULATION  APPLICABLE  TO  COOPERATIVES.
SAID  COOPERATIVES  MAY  COLLABORATE  WITH  ONE OR MORE TRANSMISSION AND
DISTRIBUTION COMPANIES OR PUBLIC POWER AUTHORITIES IN ADMINISTERING  ITS
PROGRAM. THE PROGRAM ESTABLISHED BY EACH COOPERATIVE SHALL CONSIST OF:
  (A)  HIGH  VOLTAGE TRANSMISSION SYSTEM IMPROVEMENTS, INCLUDING BUT NOT
LIMITED TO THE REPLACEMENT OR UPGRADE OF TRANSMISSION FACILITIES  AND/OR
TRANSMISSION  LINES,  WHICH,  DUE  TO  THEIR YEARS IN SERVICE OR LIMITED
TRANSFER CAPACITY HAVE CREATED OR ARE PROJECTED  TO  CREATE  WITHIN  TEN
YEARS  OF  THE  EFFECTIVE DATE OF THIS ACT A SIGNIFICANT ELECTRIC SYSTEM
RELIABILITY PROBLEM, OR AS DETERMINED BY THE COMMISSION HAVE CONTRIBUTED
TO A SIGNIFICANT INCREASE IN THE WHOLESALE COST OF ELECTRICITY. A  COOP-
ERATIVE SHALL NOT DEVELOP ANY PLAN TO INVEST IN NEW TRANSMISSION FACILI-
TIES  THAT  WOULD  REQUIRE  THE ACQUISITION OF SUBSTANTIAL NEW RIGHTS OF
WAY.  HIGH VOLTAGE TRANSMISSION SYSTEM IMPROVEMENTS MADE BY THE AUTHORI-
TY PURSUANT TO THIS SECTION SHALL:
  (I) ENCOURAGE THE INTERCONNECTION OF EXISTING  AND  PROPOSED  ELECTRIC
GENERATING  FACILITIES,  WITH  AN EMPHASIS ON RENEWABLE ENERGY TECHNOLO-
GIES, INCLUDING BUT NOT LIMITED TO SOLAR AND WIND;
  (II) ALLOW FOR THE ECONOMIC AND COST-EFFECTIVE TRANSMISSION  OF  ELEC-
TRICITY  FROM  EXISTING  AND  PROPOSED  ELECTRIC  GENERATING  FACILITIES
LOCATED IN NEW YORK TO ENERGY INTENSIVE REGIONS LOCATED WITHIN THE ELEC-
TRIC TRANSMISSION SYSTEM OPERATED BY THE BULK  SYSTEM  OPERATOR  SERVING
THE STATE'S ELECTRIC SYSTEM;
  (III)  BE  SITED ONLY ON EXISTING TRANSMISSION RIGHTS OF WAY, PROVIDED
FURTHER THAT THE ACQUISITION OF ADDITIONAL LANDS PARALLEL TO SUCH RIGHTS
OF WAY BE MINIMAL;
  (IV) BE DESIGNED TO REDUCE SUSCEPTIBILITY TO POWER OUTAGES  CAUSED  BY
EVENTS  SUCH AS STORM-RELATED DAMAGE INCLUDING, BUT NOT LIMITED TO, HIGH
WINDS, THUNDERSTORMS AND ICE STORMS; AND
  (V) MEET ANY OTHER STANDARDS FOR ECONOMY AND  RELIABILITY  ESTABLISHED
BY  THE COMMISSION IN DEVELOPING ITS GRID MODERNIZATION PROGRAM PURSUANT
TO SUBDIVISION FIVE OF SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
  (B)  DISTRIBUTION  SYSTEM  INFRASTRUCTURE  IMPROVEMENTS,  WHICH  SHALL
INCLUDE, WHERE APPLICABLE, BUT NOT BE LIMITED TO UNDERGROUND RESIDENTIAL

A. 2371                            20

DISTRIBUTION  CABLE  INJECTION  AND  REPLACEMENT,  MAINLINE CABLE SYSTEM
REFURBISHMENT  AND  REPLACEMENT;  WOOD  UTILITY  POLE  INSPECTION,   THE
REPLACEMENT  OR RELOCATION OR UNDERGROUND CONVERSION OF CERTAIN CIRCUITS
WHICH  HAVE  BEEN IDENTIFIED BY THE COMMISSION AS SUSCEPTIBLE TO OUTAGES
OR SERVICE DISRUPTION BY EVENTS SUCH AS STORM-RELATED DAMAGE, INCLUDING,
BUT NOT LIMITED TO, HIGH WINDS, THUNDERSTORMS AND ICE  STORMS.  DISTRIB-
UTION  SYSTEM  IMPROVEMENTS  MADE  BY A COOPERATIVE PURSUANT TO THIS ACT
SHALL:
  (I) BE DESIGNED TO REDUCE THE  SUSCEPTIBILITY  TO  ELECTRICAL  OUTAGES
INCLUDING THOSE CAUSED BY EVENTS SUCH AS STORMS;
  (II)  WHERE  POSSIBLE  AND  PRACTICABLE,  BE DESIGNED AND LOCATED IN A
MANNER THAT WILL REDUCE THE RELIANCE ON UTILITY RIGHT OF WAY MAINTENANCE
PRACTICES INCLUDING TREE AND BRUSH CUTTING; AND
  (III) WHERE POSSIBLE AND PRACTICABLE ALLOW FOR AND ENCOURAGE THE INTE-
GRATION OF AMI.
  (C) ENERGY LOW-INCOME ASSISTANCE AND  ENERGY  USAGE  EDUCATION,  WHICH
SHALL INCLUDE, WHERE APPLICABLE, BUT NOT BE LIMITED TO:
  (I)  RESIDENTIAL  AND NON-RESIDENTIAL AND SMALL BUSINESS UTILITY RATE-
PAYER HARDSHIP PROGRAMS;
  (II) GRANTS  AND  OTHER  PAYMENT  CONCESSIONS  TO  DISABLED  VETERANS,
DEFINED  AS  A  VETERAN  WHO HAS RECEIVED A COMPENSATION RATING FROM THE
UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR FROM THE  UNITED  STATES
DEPARTMENT OF DEFENSE BECAUSE OF A SERVICE-CONNECTED DISABILITY INCURRED
IN  THE  LINE  OF DUTY IN THE ACTIVE MILITARY, NAVAL OR AIR SERVICES WHO
DEMONSTRATE A HARDSHIP, A  DISABLED  VETERAN  WHO  BECAME  SEVERELY  AND
PERMANENTLY  DISABLED  AS  A  RESULT  OF  INJURY  OR ILLNESS SUFFERED OR
INCURRED DURING MILITARY TRAINING IN PREPARATION FOR DUTY  IN  A  COMBAT
THEATER  OR  COMBAT  ZONE  OF  OPERATIONS WHO DEMONSTRATE A HARDSHIP AND
MEMBERS OF THE ARMED SERVICES OR A  MEMBER  OF  THE  NATIONAL  GUARD  OR
RESERVE  AS DEFINED IN 10 U.S.C. SECTION 101 (D) (1), OR A MEMBER OF THE
STATE ORGANIZED MILITIA, AND IS CALLED OR ORDERED TO ACTIVE DUTY FOR THE
STATE, AS DEFINED IN SUBDIVISION ONE OF SECTION SIX OF THE MILITARY  LAW
AND WHO DEMONSTRATES A HARDSHIP; AND
  (III)  BUDGET  ASSISTANCE PROGRAMS THAT PROVIDE TOOLS AND EDUCATION TO
AUTHORITY CUSTOMERS WITH AN EMPHASIS ON LOW-INCOME CUSTOMERS AND  SENIOR
CITIZENS  TO  ASSIST  THEM  WITH  OBTAINING INFORMATION REGARDING ENERGY
USAGE AND EFFECTIVE MEANS OF MANAGING ENERGY COSTS.
  (D) ENERGY LOW-INCOME ASSISTANCE AND EDUCATION PROGRAMS MADE  PURSUANT
TO  THIS SECTION SHALL BE DESIGNED TO REDUCE OR PREVENT DISCONNECTION OF
UTILITY SERVICE TO RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS DUE TO  ANY
POTENTIAL INCREASE IN MONTHLY UTILITY BILLS.
  (E) SMART GRID DEPLOYMENT, IF DETERMINED FEASIBLE AND ADVISABLE BY THE
TRUSTEES,  WILL PROVIDE CUSTOMERS WITH THE TECHNOLOGICAL AND EDUCATIONAL
RESOURCES TO MATCH PERSONAL ENERGY USAGE TO PERIODS OF  REDUCED  OR  LOW
ELECTRIC  DEMAND WITHIN EACH COOPERATIVE'S SERVICE TERRITORY. SMART GRID
INFRASTRUCTURE DEPLOYMENT MADE PURSUANT TO THIS SECTION SHALL:
  (I) BE DESIGNED TO ALLOW FOR ELECTRIC CUSTOMERS  TO  OBTAIN  REAL-TIME
RETAIL ELECTRIC PRICING DATA AND CONSUMER DEMAND DATA WITHIN THE COOPER-
ATIVE'S  SERVICE  TERRITORY  THROUGH  THE INSTALLATION OF AMI, WHICH MAY
INCLUDE SMART METERS OR INTERACTIVE CONSUMER SOFTWARE AND COMMUNICATIONS
APPLICATIONS;
  (II) PROTECT CUSTOMER PRIVACY, INCLUDING PERSONAL  FINANCIAL  INFORMA-
TION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE;
  (III)  ALLOW  ANY  CUSTOMER  OF  A  COOPERATIVE, AT NO PENALTY, FEE OR
SERVICE CHARGE, TO DECLINE THE PERMISSION OF THE COOPERATIVE TO  REPLACE

A. 2371                            21

A  CURRENT  METER WITH AN AMI DEVICE OR INSTALL ANY AMI DEVICE AT HIS OR
HER PROPERTY FOR THE MEASUREMENT OF AND STORAGE OF ELECTRIC USAGE DATA;
  (IV) ACCOMMODATE AND ENCOURAGE THE USE OF SMART APPLIANCES AND PLUG-IN
OR HYBRID ELECTRIC VEHICLES; AND
  (V)  INCLUDE  INITIATIVES  TO EDUCATE CONSUMERS ON THE PROPER USAGE OF
TECHNOLOGIES WITH THE AIM OF PROMOTING  SYSTEM-WIDE  REDUCTION  OF  PEAK
ENERGY USAGE.
  (F)  THE GRID MODERNIZATION PROGRAM DEVELOPED BY THE COOPERATIVE SHALL
ENSURE THAT EACH SUCH COOPERATIVE WILL  RECRUIT  AND  MAINTAIN  ADEQUATE
CERTIFIED  FULL-TIME  AND  PART-TIME EMPLOYEES AND CONTRACTED WORKERS TO
CARRY OUT THE REQUIREMENTS PURSUANT TO PARAGRAPHS (A), (B)  AND  (E)  OF
THIS  SECTION.  WORKFORCE  DEVELOPMENT  PROGRAMS  MADE  PURSUANT TO THIS
SUBDIVISION SHALL:
  (I) REQUIRE EACH COOPERATIVE TO CREATE A TUITION AND FINANCIAL ASSIST-
ANCE FUND TO COVER THE  COSTS  OF  TRAINING  PROSPECTIVE  FULL-TIME  AND
PART-TIME  EMPLOYEES  AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES,
COMMUNITY COLLEGES, BOARDS OF COOPERATIVE EDUCATION AND  OTHER  ENTITIES
ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE;
  (II)   REQUIRE  EACH  COOPERATIVE  TO  DEVELOP  WORKFORCE  RECRUITMENT
PROGRAMS TO ENSURE THAT IT MAINTAINS SUFFICIENT FULL-TIME AND  PART-TIME
EMPLOYEES  TO  OFFSET ANY POTENTIAL WORKFORCE REDUCTIONS ATTRIBUTABLE TO
RETIREMENT.
  3. THE GRID MODERNIZATION PROGRAM  SHALL  PROMOTE  THE  SUSTAINED  AND
ORDERLY  DEVELOPMENT  OF  THE  STATEWIDE ELECTRIC POWER GRID AND PROTECT
RATEPAYERS FROM SIGNIFICANT RETAIL ELECTRIC PRICE INCREASES.  A  COOPER-
ATIVE'S GRID MODERNIZATION PROGRAM SHALL:
  (A) BE DESIGNED TO INCLUDE A TEN YEAR GRID MODERNIZATION STRATEGY WITH
ANNUAL  INVESTMENT  TARGETS;  REBATES FOR HOUSEHOLDS ELIGIBLE FOR ENERGY
LOW-INCOME ASSISTANCE;  CONSUMER  EDUCATION  AND  WORKFORCE  DEVELOPMENT
PLANS; ADVANCED METER INFRASTRUCTURE DEPLOYMENT PLANS FOR CUSTOMERS WITH
ELECTRICITY  DEMANDS  LESS  THAN THREE HUNDRED KILOWATT HOURS; WORKFORCE
DEVELOPMENT, AND CYBER SECURITY SYSTEMS TO  PROTECT  CUSTOMER  FINANCIAL
INFORMATION AND DATA RELATING TO PERSONAL ELECTRICAL USAGE.
  (B)  THE  TOTAL  EXPENDITURES  UNDERTAKEN BY A COOPERATIVE FOR CAPITAL
INVESTMENTS UNDERTAKEN PURSUANT TO THIS SECTION SHALL NOT INCREASE ELEC-
TRIC RATES FOR COOPERATIVE CUSTOMERS ABOVE TWO AND ONE-HALF PERCENT.  IN
THE  EVENT  THAT  SUCH CAP WOULD BE EXCEEDED, A COOPERATIVE SHALL REDUCE
EXPENDITURES IN THE FOLLOWING REPORTING YEAR TO A LEVEL  SUFFICIENT  FOR
ACHIEVING  GRID  MODERNIZATION  BENCHMARKS WITHOUT SIGNIFICANT IMPACT TO
RATEPAYERS.
  (C) NO LATER THAN JULY FIRST, TWO THOUSAND SEVENTEEN,  AND  EVERY  TWO
YEARS  THEREAFTER,  EACH  COOPERATIVE  SHALL SUBMIT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE, THE  SPEAKER  OF  THE  ASSEMBLY,  THE
CHAIR  OF  THE SENATE COMMITTEE ON ENERGY AND TELECOMMUNICATIONS AND THE
CHAIR OF THE ASSEMBLY COMMITTEE ON ENERGY A COMPREHENSIVE REVIEW OF  THE
PROGRAM  ESTABLISHED  PURSUANT  TO THIS SECTION. THE REPORT, AMONG OTHER
MATTERS SHALL CONTAIN:
  (I) AN ANALYSIS OF  THE  COOPERATIVE'S  PROGRESS  MEETING  OBLIGATIONS
PURSUANT  TO THIS ACT AND PROGRESS IN MEETING THE OVERALL ANNUAL TARGETS
FOR MODERNIZATION; AND
  (II) ANNUAL COMMITMENTS AND EXPENDITURES.
  S 10. This act shall take effect immediately,  provided  that  section
five of this act shall take effect one year after it shall have become a
law.