S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7480
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 26, 2017
                                ___________
 
 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".
   § 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 This outdated transmission system  is  leading  to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.
                                                            LBD11160-01-7

 A. 7480                             2
 
 attract  knowledgeable workers who will be instrumental in the implemen-
 tation of a modernized electric grid.
   § 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 SIXTY-SIX-O OF THE
 PUBLIC SERVICE LAW.
   § 4. The public service law is amended by adding a new section 66-o to
 read as follows:
   §  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. 7480                             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. 7480                             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. 7480                             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. 7480                             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. 7480                             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. 7480                             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 EIGHT 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 TWENTY, 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.
   § 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. 7480                             9
 
 ASSOCIATED WITH THE CONTINUING EDUCATION REQUIREMENTS OF  THIS  SUBPARA-
 GRAPH SHALL BE THE RESPONSIBILITY OF THE EMPLOYER.
   § 6. Section 1005 of the public authorities law is amended by adding a
 new subdivision 26 to read as follows:
   26.  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. 7480                            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 WORKING
 WITH THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY  OF  THE
 DEVELOPMENT AND IMPLEMENTATION OF A SMART GRID ADVANCED METERING INFRAS-
 TRUCTURE 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. 7480                            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. 7480                            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, COMMU-
 NITY 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. 7480                            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 NINETEEN, 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.
   §  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:
   §  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. 7480                            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 WORKING
 WITH THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY  OF  THE
 DEVELOPMENT AND IMPLEMENTATION OF A SMART GRID ADVANCED METERING INFRAS-
 TRUCTURE 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. 7480                            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. 7480                            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 PART-

 A. 7480                            17

 TIME EMPLOYEES AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES, COMMU-
 NITY 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 NINETEEN, 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.
   §  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.
   § 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.
   §  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. 7480                            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. 7480                            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 WORKING
 WITH THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY  OF  THE
 DEVELOPMENT AND IMPLEMENTATION OF A SMART GRID ADVANCED METERING INFRAS-
 TRUCTURE 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. 7480                            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. 7480                            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, COMMU-
 NITY 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  NINETEEN,  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.
   § 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.