S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8240
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 10, 2019
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred to the Committee
   on Energy
 
 AN  ACT  to amend the public service law and the public authorities law,
   in relation to establishing a clean and resilient energy program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The public service law is amended by adding a new section
 66-p to read as follows:
   § 66-P. CLEAN AND  RESILIENT  ENERGY  PROGRAM.  1.  AS  USED  IN  THIS
 SECTION:
   (A)  "CLEAN AND RESILIENT BEHIND THE METER DISTRIBUTED ENERGY RESOURCE
 PROJECT" MEANS AN ELECTRICITY GENERATING SYSTEM LOCATED BEHIND A CUSTOM-
 ER METER IN THE STATE THAT IS CONFIGURED TO PROVIDE UNINTERRUPTED  ELEC-
 TRIC  SERVICE  TO  A CUSTOMER THROUGHOUT AN EXTENDED OUTAGE OF THE ELEC-
 TRICITY DISTRIBUTION SYSTEM, AND WHICH:
   (I) (1) GENERATES ELECTRICITY AT AN ANNUAL AVERAGE  EFFICIENCY  OF  NO
 LESS THAN FIFTY-FIVE PERCENT MEASURED ON A LOWER HEATING VALUE BASIS AND
 REDUCES THE LOCAL COMBUSTION RELATED AIR POLLUTANT OXIDES OF NITROGEN BY
 AT  LEAST  FIFTY PERCENT IN COMPARISON TO THE MOST RECENT ANNUAL AVERAGE
 MARGINAL EMISSION FACTORS, ACCOUNTING FOR LINE LOSSES, FOR THE NEW  YORK
 INDEPENDENT  SYSTEM OPERATOR ZONE IN WHICH THE PROJECT IS LOCATED AT THE
 TIME OF INTERCONNECTION; OR
   (2) GENERATES ELECTRICITY AND THERMAL  ENERGY  AT  AN  ANNUAL  AVERAGE
 EFFICIENCY  OF  NO LESS THAN SEVENTY PERCENT MEASURED ON A LOWER HEATING
 VALUE BASIS AND REDUCES  THE  LOCAL  COMBUSTION  RELATED  AIR  POLLUTANT
 OXIDES  OF  NITROGEN BY AT LEAST FIFTY PERCENT IN COMPARISON TO THE MOST
 RECENT ANNUAL AVERAGE MARGINAL EMISSION  FACTORS,  ACCOUNTING  FOR  LINE
 LOSSES,  FOR  THE NEW YORK INDEPENDENT SYSTEM OPERATOR ZONE IN WHICH THE
 PROJECT IS LOCATED AT THE TIME OF INTERCONNECTION; AND
   (II) IS LOCATED AT A COMMUNITY OUTAGE ASSET OR WITHIN  THE  BOUNDARIES
 OF AN EXISTING OR PLANNED MICROGRID.
   (B)  "COMMUNITY  OUTAGE  ASSET"  MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES CRITICAL SERVICES TO THE PUBLIC DURING AN OUTAGE OF  THE  ELEC-
 TRIC DISTRIBUTION SYSTEM. COMMUNITY OUTAGE ASSETS SHALL INCLUDE, BUT ARE
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11992-01-9

 A. 8240                             2
 
 NOT  LIMITED  TO:    TELECOMMUNICATIONS  PROVIDERS, LARGE RETAIL STORES,
 SUPERMARKETS, GOVERNMENT AGENCIES, DATA CENTERS, TRANSPORTATION SYSTEMS,
 FINANCIAL INSTITUTIONS, GAS STATIONS, EDUCATIONAL  INSTITUTIONS,  HEALTH
 CARE   PROVIDERS,  LARGE  MULTI-FAMILY  RESIDENTIAL  HOUSING,  COMMUNITY
 CENTERS, AND OTHER CUSTOMERS DEEMED BY THE COMMISSION TO PROVIDE A CRIT-
 ICAL SERVICE TO THE PUBLIC THAT WOULD  PROMOTE  OR  ENHANCE  HEALTH  AND
 SAFETY DURING AN OUTAGE OF THE ELECTRIC DISTRIBUTION SYSTEM.
   (C)  "EXTENDED  OUTAGE"  MEANS  AN OUTAGE OF THE ELECTRIC DISTRIBUTION
 SYSTEM THAT CONTINUES FOR A PERIOD OF TWENTY-FOUR HOURS OR LONGER.
   (D) "UNINTERRUPTED" MEANS THAT THE OUTPUT OF THE SYSTEM  IS  DELIVERED
 TO  THE  END-USE  CUSTOMER  THROUGHOUT AN EXTENDED ELECTRIC DISTRIBUTION
 SYSTEM OUTAGE, WITH THE EXCEPTION OF MOMENTARY INTERRUPTIONS  ASSOCIATED
 WITH TRANSITIONS TO AND FROM GRID PARALLEL AND GRID ISLANDED OPERATIONS.
   (E)  "MICROGRID" MEANS A GROUP OF INTERCONNECTED LOADS AND DISTRIBUTED
 ENERGY RESOURCES WITHIN CLEARLY DEFINED ELECTRICAL BOUNDARIES THAT  ACTS
 AS  A  SINGLE  CONTROLLABLE ENTITY WITH RESPECT TO THE GRID. A MICROGRID
 CAN CONNECT AND DISCONNECT FROM THE GRID TO ENABLE IT TO OPERATE IN BOTH
 GRID-CONNECTED OR ISLAND-MODE.
   2. WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  THE
 COMMISSION  SHALL COMMENCE MODIFICATION OF THE CLEAN ENERGY FUND INVEST-
 MENT PLAN TO ALLOCATE NO LESS THAN FIVE PERCENT OF ANNUAL  CLEAN  ENERGY
 FUND  EXPENDITURES  TO  ENCOURAGE THE DEVELOPMENT OF CLEAN AND RESILIENT
 BEHIND THE METER  DISTRIBUTED  ENERGY  RESOURCE  PROJECTS.  THE  PROGRAM
 MODIFICATIONS SHALL REQUIRE:
   (A)  ADMINISTRATION BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
 MENT AUTHORITY;
   (B) PLANNED ANNUAL EXPENDITURES THAT  AMOUNT  TO  NO  LESS  THAN  FIVE
 PERCENT  OF  OVERALL ANNUAL CLEAN ENERGY FUND EXPENDITURES COMMENCING IN
 CALENDAR YEAR TWO THOUSAND TWENTY AND SUSTAINED EACH YEAR THROUGH CALEN-
 DAR YEAR TWO THOUSAND TWENTY-FOUR;
   (C) INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND  PRACTI-
 CALITY  THROUGH COMPETITIVE PROCUREMENTS, STANDING-OFFERS, OR PRODUCTION
 INCENTIVES;
   (D) INCENTIVE STRUCTURES THAT ARE DESIGNED TO MAXIMIZE THE  CO-DEPLOY-
 MENT  OF CLEAN AND RESILIENT DISTRIBUTED ENERGY RESOURCES WITH SOLAR AND
 ENERGY STORAGE RESOURCES;
   (E) ANNUAL REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
 PROGRAM; AND
   (F)  ANY  OTHER  REQUIREMENTS  DEEMED APPROPRIATE BY THE COMMISSION TO
 EFFECTUATE THE PURPOSES OF THIS SECTION.
   § 2. Section 1020-ll of the public authorities law, as  renumbered  by
 chapter 520 of the laws of 2018, is renumbered section 1020-zz.
   §  3.  Sections 1020-jj, 1020-kk and 1020-ll of the public authorities
 law, sections 1020-jj and 1020-kk as renumbered by chapter  520  of  the
 laws  of  2018  and  section 1020-ll as renumbered by chapter 415 of the
 laws of 2017, are renumbered sections 1020-ww, 1020-xx, and 1020-yy  and
 a new section 1020-jj is added to read as follows:
   §  1020-JJ.  CLEAN AND RESILIENT ENERGY INITIATIVE. 1. AS USED IN THIS
 SECTION:
   (A) "CLEAN AND RESILIENT BEHIND THE METER DISTRIBUTED ENERGY  RESOURCE
 PROJECT" MEANS AN ELECTRICITY GENERATING SYSTEM LOCATED BEHIND A CUSTOM-
 ER METER THAT IS CONFIGURED TO PROVIDE UNINTERRUPTED ELECTRIC SERVICE TO
 A  CUSTOMER  THROUGHOUT  AN EXTENDED OUTAGE OF THE ELECTRIC DISTRIBUTION
 SYSTEM, AND WHICH:
   (I) (1) GENERATES ELECTRICITY AT AN ANNUAL AVERAGE  EFFICIENCY  OF  NO
 LESS THAN FIFTY-FIVE PERCENT MEASURED ON A LOWER HEATING VALUE BASIS AND

 A. 8240                             3
 
 REDUCES THE LOCAL COMBUSTION RELATED AIR POLLUTANT OXIDES OF NITROGEN BY
 AT  LEAST  FIFTY PERCENT IN COMPARISON TO THE MOST RECENT ANNUAL AVERAGE
 MARGINAL EMISSION FACTORS, ACCOUNTING FOR LINE LOSSES, FOR THE NEW  YORK
 INDEPENDENT  SYSTEM OPERATOR ZONE IN WHICH THE PROJECT IS LOCATED AT THE
 TIME OF INTERCONNECTION; OR
   (2) GENERATES ELECTRICITY AND THERMAL  ENERGY  AT  AN  ANNUAL  AVERAGE
 EFFICIENCY  OF  NO LESS THAN SEVENTY PERCENT MEASURED ON A LOWER HEATING
 VALUE BASIS AND REDUCES  THE  LOCAL  COMBUSTION  RELATED  AIR  POLLUTANT
 OXIDES  OF  NITROGEN BY AT LEAST FIFTY PERCENT IN COMPARISON TO THE MOST
 RECENT ANNUAL AVERAGE MARGINAL EMISSION  FACTORS,  ACCOUNTING  FOR  LINE
 LOSSES,  FOR  THE NEW YORK INDEPENDENT SYSTEM OPERATOR ZONE IN WHICH THE
 PROJECT IS LOCATED AT THE TIME OF INTERCONNECTION; AND
   (II) IS LOCATED AT A COMMUNITY OUTAGE ASSET OR WITHIN  THE  BOUNDARIES
 OF AN EXISTING OR PLANNED MICROGRID.
   (B)  "COMMUNITY  OUTAGE  ASSET"  MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES CRITICAL SERVICES TO THE PUBLIC DURING AN OUTAGE OF  THE  ELEC-
 TRIC  DISTRIBUTION  SYSTEM.   COMMUNITY OUTAGE ASSETS SHALL INCLUDE, BUT
 ARE NOT LIMITED TO:  TELECOMMUNICATIONS PROVIDERS, LARGE RETAIL  STORES,
 SUPERMARKETS, GOVERNMENT AGENCIES, DATA CENTERS, TRANSPORTATION SYSTEMS,
 FINANCIAL  INSTITUTIONS,  GAS STATIONS, EDUCATIONAL INSTITUTIONS, HEALTH
 CARE  PROVIDERS,  LARGE  MULTI-FAMILY  RESIDENTIAL  HOUSING,   COMMUNITY
 CENTERS,  AND OTHER CUSTOMERS DEEMED BY THE AUTHORITY TO PROVIDE A CRIT-
 ICAL SERVICE TO THE PUBLIC THAT WOULD  PROMOTE  OR  ENHANCE  HEALTH  AND
 SAFETY DURING AN OUTAGE OF THE ELECTRIC DISTRIBUTION SYSTEM.
   (C)  "EXTENDED  OUTAGE"  MEANS  AN OUTAGE OF THE ELECTRIC DISTRIBUTION
 SYSTEM THAT CONTINUES FOR A PERIOD OF TWENTY-FOUR HOURS OR LONGER.
   (D) "UNINTERRUPTED" MEANS THAT THE OUTPUT OF THE SYSTEM  IS  DELIVERED
 TO  THE  END-USE  CUSTOMER  THROUGHOUT  AN  ELECTRIC DISTRIBUTION SYSTEM
 OUTAGE, WITH THE EXCEPTION OF MOMENTARY  INTERRUPTIONS  ASSOCIATED  WITH
 TRANSITIONS TO AND FROM GRID PARALLEL AND GRID ISLANDED OPERATIONS.
   (E)  "MICROGRID" MEANS A GROUP OF INTERCONNECTED LOADS AND DISTRIBUTED
 ENERGY RESOURCES WITHIN CLEARLY DEFINED ELECTRICAL BOUNDARIES THAT  ACTS
 AS  A  SINGLE  CONTROLLABLE ENTITY WITH RESPECT TO THE GRID. A MICROGRID
 CAN CONNECT AND DISCONNECT FROM THE GRID TO ENABLE IT TO OPERATE IN BOTH
 GRID-CONNECTED OR ISLAND-MODE.
   2. WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  THE
 AUTHORITY  SHALL  COMMENCE  THE  CONSIDERATION  OF  MODIFICATIONS TO ITS
 EXISTING PROGRAMS THAT ENCOURAGE THE DEVELOPMENT OF CLEAN AND  RESILIENT
 BEHIND  THE  METER  DISTRIBUTED  ENERGY RESOURCE PROJECTS. THE AUTHORITY
 SHALL CONSULT WITH THE NEW YORK STATE PUBLIC SERVICE COMMISSION AND  THE
 NEW  YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IN THE DESIGN
 AND IMPLEMENTATION OF SUCH PROGRAM. THE PROJECTS SHALL REQUIRE:
   (A) PLANNED ANNUAL EXPENDITURES THAT AMOUNT TO NO  LESS  THAN  FIFTEEN
 MILLION  DOLLARS  COMMENCING  IN  CALENDAR  YEAR TWO THOUSAND TWENTY AND
 SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-FOUR;
   (B) INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND  PRACTI-
 CALITY  THROUGH COMPETITIVE PROCUREMENTS, STANDING-OFFERS, OR PRODUCTION
 INCENTIVES;
   (C) ANNUAL REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
 PROGRAM; AND
   (D)  ANY  OTHER  REQUIREMENTS  DEEMED  APPROPRIATE BY THE AUTHORITY TO
 EFFECTUATE THE PURPOSES OF THIS SECTION.
   § 4. This act shall take effect immediately.