S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10472
 
                           I N  A S S E M B L Y
 
                               May 29, 2024
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Cunningham)
   -- read once and referred to the Committee on Energy
 
 AN ACT to amend the public service law,  in  relation  to  enacting  the
   "build to need 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 as and may be cited as
 the "build to need act".
   § 2. Legislative findings and intent.  The  legislature  hereby  finds
 that in order to achieve the targets set forth in the climate leadership
 and  community protection act, zero-emissions vehicle sales targets, and
 regulations, including the advanced clean truck and advanced clean  cars
 II  rules,  zero-emissions school bus mandate, and other relevant goals,
 the interests of the people of the state would be served by:
   (a) expediting electric grid infrastructure upgrades to facilitate the
 charging of light-duty, medium-duty, and heavy-duty electric vehicles;
   (b) aligning a proactive planning process for beneficial  electrifica-
 tion  with  the  current  coordinated grid planning process for electric
 corporations;
   (c) ensuring the full range of feasible  distributed  energy  resource
 technologies,  load  management  opportunities, and expected electrified
 end uses are incorporated into electric utility investment plans;
   (d) lowering costs to customers through efficient planning,  including
 consideration and deployment of non-wires solutions that reduce or elim-
 inate the need for distribution system upgrades;
   (e)  ensuring  meaningful  benefits  to  communities  most affected by
 large-scale proactive utility projects developed under  this  framework;
 and
   (f)  enhancing  speed,  flexibility,  and  ease  of customer intercon-
 nections (including both loads and distributed generation).
   § 3. The public service law is amended by adding a new section 77-a to
 read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14561-02-4
 A. 10472                            2
              

 
   § 77-A. BUILD TO NEED ACT. 1. WITHIN SIXTY DAYS OF THE EFFECTIVE  DATE
 OF THIS SECTION, THE COMMISSION SHALL COMMENCE A PROCEEDING TO IMPLEMENT
 A GRID PLANNING PROCESS THAT SHALL DIRECT ELECTRIC CORPORATIONS TO:
   (A)  ALIGN  PLANNING  UNDER  THIS SECTION WITH EXISTING PLANNING PROC-
 ESSES, INCLUDING  THE  COORDINATED  GRID  PLANNING  PROCESS  IMPLEMENTED
 PURSUANT  TO THE CLIMATE LEADERSHIP AND COMMUNITY PROTECTION ACT, TO THE
 EXTENT FEASIBLE;
   (B) PROVIDE ANNUALLY TO  THE  NEW  YORK  INDEPENDENT  SYSTEM  OPERATOR
 UPDATED LOAD PROJECTIONS CONSISTENT WITH THE STATE'S ELECTRIFICATION AND
 CLIMATE RELATED POLICY MANDATES;
   (C)  USE  A  PLANNING  HORIZON  OF AT LEAST TEN YEARS FOR TRANSMISSION
 THROUGH SUBSTATION-LEVEL INVESTMENTS AND A PLANNING HORIZON OF AT  LEAST
 FIVE YEARS FOR OTHER DISTRIBUTION INVESTMENTS;
   (D)  PROACTIVELY  GATHER AND INCORPORATE DATA RELEVANT TO FUTURE ELEC-
 TRIC LOADS FROM SOURCES INCLUDING BUT NOT LIMITED TO CUSTOMERS OPERATING
 FLEETS, STATE AND  MUNICIPAL  DEPARTMENTS  OF  TRANSPORTATION  OR  THEIR
 EQUIVALENTS,  OTHER  ENTITIES  THAT  MAY  REASONABLY BE EXPECTED TO HAVE
 RELEVANT INFORMATION CONCERNING LOCATION, TYPE, MAGNITUDE, OR TIMING  OF
 MAJOR FUTURE LOADS, AVAILABLE VEHICLE TELEMATICS DATA, AND OTHER SOURCES
 OF INFORMATION AS DIRECTED BY THE COMMISSION;
   (E)  CONSIDER  CUSTOMERS' ACTIVITIES THAT MAY REDUCE, DEFER, OR OTHER-
 WISE AFFECT THE NEED OR EXTENT OF  GRID  UPGRADES,  SUCH  AS  CUSTOMERS'
 REASONABLY  FORESEEABLE  LOAD  MANAGEMENT  ACTIVITIES, INCLUDING BUT NOT
 LIMITED TO IMPLEMENTATION OF AUTOMATED LOAD MANAGEMENT TECHNOLOGIES, AND
 DEPLOYMENTS OF DISTRIBUTED ENERGY RESOURCES AND ABILITY  TO  ENTER  INTO
 FLEXIBLE INTERCONNECTIONS;
   (F)  IDENTIFY SYSTEM NEEDS WHERE THE ELECTRIC CORPORATION, PLANNING IN
 ACCORDANCE WITH THE STATE'S ELECTRIFICATION AND CLIMATE  RELATED  POLICY
 MANDATES,  FINDS  (I) A REASONABLE EXPECTATION OF NEW LOAD IN A SPECIFIC
 AREA BASED ON INPUTS INCLUDING FLEET ELECTRIFICATION COMMITMENTS,  PROX-
 IMITY  TO  TRANSPORTATION  CORRIDORS,  PORTS,  AIRPORTS,  OTHER EXISTING
 TRANSPORTATION OR FREIGHT HUBS AND  OTHER  RELEVANT  DATA  SOURCES  THAT
 WOULD  SUBSTANTIATE THE PROJECTIONS OF NEW LOAD AND THE ASSOCIATED TIME-
 LINE; AND (II) A REASONABLE LIKELIHOOD OF GRID  CONSTRAINTS  THAT  SHALL
 IMPAIR  THE  ELECTRIC  CORPORATIONS  ABILITY  TO SERVE THE LOAD ABSENT A
 SOLUTION TO ADDRESS THE SYSTEM NEED IN A TIMELY MANNER; AND
   (G) WHERE AN ELECTRIC  CORPORATION  IDENTIFIES  A  SYSTEM  NEED,  SUCH
 CORPORATION SHALL DEVELOP SOLUTIONS THAT PROACTIVELY ADDRESS SUCH SYSTEM
 NEED, AND CONSIDER ADVANCED TECHNOLOGIES WHERE APPROPRIATE AND FEASIBLE.
   2.  (A)  THE  COMMISSION SHALL DEVELOP A TEST FOR DEFINING LARGER TIER
 ONE SOLUTIONS AND SMALLER TIER TWO SOLUTIONS. SUCH TEST SHALL:
   (I) BE APPLIED UNIFORMLY TO ALL ELECTRIC  CORPORATIONS,  EXCEPT  WHERE
 THE  COMMISSION  DETERMINES  SUCH  DIFFERENT  CRITERIA SHOULD APPLY TO A
 GIVEN ELECTRIC CORPORATION BECAUSE UNIQUE CIRCUMSTANCES OR HARDSHIPS, OR
 IMPRACTICABILITY OF APPLYING THE UNIFORM TEST TO  SUCH  ELECTRIC  CORPO-
 RATION EXIST;
   (II) PROHIBIT ELECTRIC CORPORATIONS FROM SEGMENTING SOLUTIONS TO AVOID
 A TIER ONE DESIGNATION; AND
   (III) SPECIFY CRITERIA SUCH AS, BUT NOT LIMITED TO, SOLUTION COST AS A
 PERCENTAGE  OF  THE  ELECTRIC  CORPORATION'S RATE BASE, SOLUTION NOMINAL
 VOLTAGE, SOLUTION WATTAGE AND SOLUTION TYPE.
   (B) THE COMMISSION MAY UPDATE SUCH TEST AS APPROPRIATE TO  ENSURE  THE
 TIMELY  ACHIEVEMENT  OF STATE ELECTRIFICATION MANDATES AND THE EFFICIENT
 CONSIDERATION OF SOLUTIONS DEVELOPMENT PURSUANT TO THIS SECTION.
 A. 10472                            3
 
   (C) THE COMMISSION SHALL ESTABLISH SEPARATE REQUIREMENTS FOR TIER  ONE
 PROJECTS  FOR WHICH THE ELECTRIC CORPORATION SEEKS APPROVAL UNDER SUBDI-
 VISION FOUR OF THIS SECTION AND TIER TWO PROJECTS.
   3.  THE  COMMISSION  SHALL  DEVELOP  A  FRAMEWORK GOVERNING THE USE OF
 ADVANCED TECHNOLOGIES AS PART OF THE SOLUTIONS FOR  WHICH  THE  ELECTRIC
 CORPORATION  SEEKS APPROVAL UNDER SUBDIVISION FOUR OF THIS SECTION. SUCH
 FRAMEWORK SHALL: (A) DEFINE  ADVANCED  TECHNOLOGIES  TO  INCLUDE  ENERGY
 STORAGE,  DEMAND  RESPONSE, AUTOMATED LOAD MANAGEMENT, OTHER DISTRIBUTED
 ENERGY RESOURCES, AND ANY OTHER CATEGORIES AS DETERMINED BY THE  COMMIS-
 SION.    SUCH  FRAMEWORK  SHALL DIRECT ELECTRIC CORPORATIONS TO CONSIDER
 WHERE APPROPRIATE AND FEASIBLE AT LEAST ONE  ALTERNATIVE  TECHNOLOGY  TO
 ADDRESS THE IDENTIFIED SYSTEM NEED FULLY OR PARTIALLY; AND
   (B) SUCH ELECTRIC CORPORATION SHALL DEMONSTRATE WHY ADVANCED TECHNOLO-
 GIES  WERE  OR  WERE NOT INCLUDED AS PART OF THE PROJECT. THE COMMISSION
 MAY ESTABLISH MANDATORY TARGETS FOR DEPLOYMENT OF ADVANCED TECHNOLOGIES,
 PROVIDE FOR EARNINGS ADJUSTMENT MECHANISMS  ASSOCIATED  WITH  UTILITIES'
 DEPLOYMENT OF ADVANCED TECHNOLOGIES, AND INCLUDE OTHER METRICS AND GUID-
 ANCE AS APPROPRIATE.
   4.  IN  APPROVING TIER ONE PROJECTS FOR WHICH THE ELECTRIC CORPORATION
 SEEKS APPROVAL UNDER THIS SUBDIVISION, THE COMMISSION SHALL REQUIRE:
   (A) ELECTRIC CORPORATIONS FILE WITH  THE  COMMISSION  A  PETITION  FOR
 APPROVAL.  SUCH  PETITION  SHALL  INCLUDE  A DESCRIPTION OF PROJECT NEED
 INCLUDING DATA SOURCES TO SUBSTANTIATE NEED, EXPLANATION OF ALTERNATIVES
 CONSIDERED, DESCRIPTION OF ITS COMMUNITY BENEFIT  PLAN  AS  REQUIRED  IN
 SUBDIVISION  SIX  OF  THIS  SECTION,  PROJECTED  COSTS  AND  BENEFITS, A
 PROPOSED COST RECOVERY METHOD, AND ANY OTHER REQUIREMENTS AS ESTABLISHED
 BY THE COMMISSION. FURTHER, SUCH PETITION SHALL INCLUDE  AN  EXPLANATION
 OF  AN  ELECTRIC  CORPORATION'S  REASONABLE  EFFORTS  TO OBTAIN STATE OR
 FEDERAL FUNDING SOURCES TO OFFSET ELECTRIC CORPORATION CUSTOMER COSTS OF
 THE PROJECT. IF THE ELECTRIC CORPORATION DOES NOT SEEK STATE OR  FEDERAL
 FUNDING SOURCES, IT SHALL EXPLAIN WHY IT DID NOT SEEK SUCH FUNDING.
   (B) RENDER A DECISION ON SUCH PETITION WITHIN ONE HUNDRED TWENTY DAYS,
 OR  WITHIN THE ONE HUNDRED TWENTY DAY PERIOD, EXTEND SUCH TIME TO RENDER
 A DECISION BY SIXTY DAYS. FAILURE TO RENDER A DECISION WITHIN SUCH TIME-
 LINE PRESCRIBED, SHALL DEEM SUCH PETITION APPROVED BY OPERATION OF  LAW;
 AND
   (C)  TO THE EXTENT AN ELECTRIC CORPORATION'S INFRASTRUCTURE DEPLOYMENT
 OR OTHER COSTS ATTRIBUTABLE TO THIS SECTION  ARE  NOT  INCLUDED  IN  ITS
 CURRENT  RATE  PLAN AS OF THE EFFECTIVE DATE OF THIS SECTION, SUCH ELEC-
 TRIC CORPORATION MAY RECOVER THE INCREMENTAL REVENUE REQUIREMENT ASSOCI-
 ATED WITH SUCH COSTS THROUGH A SURCHARGE MECHANISM UNTIL ITS BASE  RATES
 ARE  RESET.  A SURCHARGE MECHANISM MAY ONLY BE USED TO THE EXTENT NECES-
 SARY BETWEEN THE EFFECTIVE DATE OF THIS SECTION AND  THE  CONCLUSION  OF
 THE ELECTRIC CORPORATION'S NEXT RATE CASE.
   5.  (A) ALL TIER ONE PROJECTS FOR WHICH THE ELECTRIC CORPORATION SEEKS
 APPROVAL UNDER SUBDIVISION FOUR OF THIS SECTION SHALL INCLUDE A COMMUNI-
 TY BENEFIT PLAN. THE COMMISSION SHALL DEVELOP A COMMUNITY  BENEFIT  PLAN
 FRAMEWORK WHICH SHALL:
   (I) DEFINE THE TERM "AFFECTED COMMUNITIES," WHICH SHALL INCLUDE COMMU-
 NITIES  IN  THE VICINITY OF A TIER ONE PROJECT AS WELL AS OTHER CRITERIA
 DEFINED BY THE COMMISSION;
   (II) CONSIDER SEPARATE REQUIREMENTS APPLICABLE TO DISADVANTAGED COMMU-
 NITIES WITHIN AFFECTED COMMUNITIES;
   (III) SPECIFY CRITERIA THAT A REASONABLE PERCENTAGE OF SOLUTION  BENE-
 FITS ARE DEMONSTRATED TO BE DELIVERED TO AFFECTED COMMUNITIES;
 A. 10472                            4
 
   (IV)  CONSIDER  ACHIEVABLE,  MEASURABLE WORKFORCE DEVELOPMENT PROGRAMS
 AND GOALS DESIGNED TO EXPAND HIGH-QUALITY JOB OPPORTUNITIES IN  AFFECTED
 COMMUNITIES;
   (V)  REQUIRE  SUCH  ELECTRIC  CORPORATION PROVIDE BENEFITS TO AFFECTED
 COMMUNITIES; AND
   (VI) REQUIRE A DESCRIPTION OF SUCH  ELECTRIC  CORPORATION'S  PAST  AND
 PLANNED  EFFORTS  CONCERNING  COMMUNITY  ENGAGEMENT  AND  ITS HISTORY OF
 INCORPORATING AN AFFECTED COMMUNITIES FEEDBACK INTO ITS SOLUTION OR  ITS
 WILLINGNESS TO INCORPORATE AN AFFECTED COMMUNITIES FEEDBACK.
   (B)  REASONABLE  AND PRUDENTLY INCURRED COSTS IN THE IMPLEMENTATION OF
 THE COMMUNITY BENEFIT PLAN SHALL BE RECOVERABLE BY SUCH ELECTRIC  CORPO-
 RATION AS PART OF SOLUTION COSTS.
   6.  THE  COMMISSION  IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS
 NECESSARY  TO  DETERMINE  RECORD  KEEPING  REQUIREMENTS  FOR  TIER   TWO
 PROJECTS, INCLUDING:
   (A) RECORDS DEMONSTRATING PROJECT NEED;
   (B) ANALYSIS OF THE CHOSEN SOLUTION BY THE ELECTRIC CORPORATION;
   (C) ALTERNATIVES CONSIDERED;
   (D) PROJECT COSTS AND BENEFITS; AND
   (E) ANY OTHER REQUIREMENTS DETERMINED BY THE COMMISSION.
   7.  WITHIN  TWO  HUNDRED  EIGHTY  DAYS  OF  THE EFFECTIVE DATE OF THIS
 SECTION, ELECTRIC CORPORATIONS SHALL  OFFER  TO  CUSTOMERS,  AND  UPDATE
 TARIFFS  AS  NECESSARY  TO  ENABLE  BOTH  HYBRID  AND FLEXIBLE INTERCON-
 NECTIONS. FOR THE PURPOSES OF THIS SUBDIVISION, HYBRID  INTERCONNECTIONS
 INCLUDE  AN  INTERCONNECTION,  THROUGH  A  SINGLE APPLICATION, OF HYBRID
 FACILITIES.  SUCH HYBRID FACILITIES SHALL INCLUDE THOSE COMPOSED OF MORE
 THAN ONE DEVICE OF DIFFERENT TECHNOLOGY TYPES FOR SUCH PRODUCTION, STOR-
 AGE, AND CONSUMPTION OF ELECTRICITY THAT ARE LOCATED ON  THE  SAME  SITE
 AND HAVE A SINGLE POINT OF INTERCONNECTION. FURTHER, FOR THE PURPOSES OF
 THIS SUBDIVISION, FLEXIBLE INTERCONNECTIONS INCLUDE ELECTRIC CORPORATION
 REQUIREMENTS  TO  ENABLE  EXPEDITIOUSLY ENERGIZING NEW LOAD OR INTERCON-
 NECTING A DISTRIBUTED  ENERGY  RESOURCE  TO  AN  ELECTRIC  CORPORATION'S
 DISTRIBUTION  SYSTEM,  INCLUDING  AN  AGREEMENT, SUPPORTED BY THE USE OF
 SOFTWARE OR HARDWARE SOLUTIONS SUCH AS AUTOMATED  LOAD  MANAGEMENT,  FOR
 CURTAILING THE IMPORT AND EXPORT OF ELECTRICITY FROM AND TO THE DISTRIB-
 UTION SYSTEM.
   8.  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION SHALL ESTABLISH AVERAGE AND MAXIMUM TARGET TIME  PERIODS  FOR  LOAD
 ENERGIZATIONS  AND  DISTRIBUTED GENERATION INTERCONNECTIONS. THE COMMIS-
 SION MAY ESTABLISH TARGETS THAT VARY DEPENDING ON THE SIZE AND COMPLEXI-
 TY OF SUCH WORK, AS WELL AS FACTORS BEYOND SUCH  ELECTRIC  CORPORATION'S
 CONTROL.    FURTHER,  THE  COMMISSION  SHALL  ESTABLISH  A PROCEDURE FOR
 CUSTOMERS TO  REPORT  ENERGIZATION  OR  INTERCONNECTION  DELAYS  TO  THE
 COMMISSION.  THE  COMMISSION SHALL ESTABLISH AN ENFORCEMENT MECHANISM TO
 ENSURE TIMELY INTERCONNECTION AND ENERGIZATION, INCLUDING BUT NOT LIMIT-
 ED TO, EARNINGS ADJUSTMENT MECHANISMS WITH INCENTIVES AND PENALTIES.
   9. THE COMMISSION, IN CONSULTATION WITH  THE  NEW  YORK  STATE  ENERGY
 RESEARCH  AND  DEVELOPMENT  AUTHORITY,  THE  DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION, THE DEPARTMENT OF TRANSPORTATION, THE POWER  AUTHORITY  OF
 NEW  YORK  STATE,  THE  LONG  ISLAND POWER AUTHORITY, AND OTHER AGENCIES
 CHARGED WITH ADMINISTERING ELECTRIC  VEHICLE  PROGRAMS,  INCENTIVES,  OR
 PROCUREMENTS  MAY  INCLUDE  PROVISIONS  FOR  THE  USE  OF AUTOMATED LOAD
 MANAGEMENT IN SUCH PROGRAMS, INCENTIVES, AND PROCUREMENTS WHEN THEY  ARE
 DETERMINED  TO BE COST EFFECTIVE. FOR PURPOSES OF THIS SUBDIVISION AUTO-
 MATED LOAD MANAGEMENT SHALL INCLUDE ANY REQUIRED HARDWARE  AND  SOFTWARE
 AND ALSO INSTALLATION COSTS.
 A. 10472                            5
 
   10.  (A)  WITHIN  ONE  YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE
 COMMISSION SHALL ADOPT REPORTING REQUIREMENTS UNDER THIS SECTION  FOR  A
 TIME  PERIOD  DETERMINED  BY  THE COMMISSION BUT NO LESS THAN FIVE YEARS
 FROM THE EFFECTIVE DATE OF  THIS  SECTION.  THE  REPORTING  REQUIREMENTS
 SHALL INCLUDE AT A MINIMUM:
   (I)  A  SUMMARY  OF TIER ONE AND TIER TWO PROJECTS DEPLOYED, INCLUDING
 BUT NOT LIMITED TO A GENERAL CATEGORIZATION OF PROJECTS, PROJECT  COSTS,
 AND FOR PROJECTS THAT ENTERED SERVICE BETWEEN THE EFFECTIVE DATE OF THIS
 SECTION  AND THE EFFECTIVE DATE OF THE ELECTRIC CORPORATION'S SUBSEQUENT
 RATE PLAN, AN IDENTIFICATION OF THOSE PROJECTS NOT INCLUDED IN THE ELEC-
 TRIC CORPORATION'S PRIOR RATE PLAN;
   (II) A COMPARISON OF PROJECTED AND ACTUAL LOADS,  INCLUDING  PROJECTED
 LOADS  ATTRIBUTABLE  TO ELECTRIFICATION AND A SUMMARY OF PROJECTED ELEC-
 TRIC CORPORATION SYSTEM UPGRADES AND COSTS TO SERVE SUCH LOADS;
   (III) ACTUAL AND ESTIMATED,  AS  PRACTICABLE,  INCREMENTAL  COSTS  AND
 REVENUES ATTRIBUTABLE TO TIER ONE AND TWO PROJECTS;
   (IV)  A SUMMARY OF COMMUNITY BENEFIT PLAN IMPLEMENTATIONS AND RESULTS,
 AS APPLICABLE; AND
   (V) ENERGIZATION AND INTERCONNECTION TIMELINES.
   (B) TO THE EXTENT AN ELECTRIC CORPORATION'S PERFORMANCE FAILS TO  MEET
 CORRESPONDING  TARGET TIME PERIODS, SUCH REPORT SHALL EXPLAIN SUCH FAIL-
 URES AND SHALL PROVIDE A STRATEGY FOR MEETING THE TARGETS IN THE FUTURE.
 THE COMMISSION SHALL  MONITOR  EACH  ELECTRIC  CORPORATION'S  ACTIVITIES
 RELATED TO THIS SECTION AND TAKE APPROPRIATE ACTION AS NEEDED TO ADDRESS
 ANY DEFICIENCIES.
   § 4. This act shall take effect immediately.