S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3504
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced by M. of A. WALKER, EPSTEIN, TAYLOR, REYES, JACKSON, SEPTIMO,
   FORREST -- Multi-Sponsored by -- M. of A. COOK, SIMON -- 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-u to read as follows:
   § 66-U. 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 WITHOUT PRODUCING  GREENHOUSE  GASES  OR
 LOCAL COMBUSTION RELATED POLLUTANTS; OR
   (2)  GENERATES  ELECTRICITY  OR  ELECTRICITY  AND THERMAL ENERGY VIA A
 NON-COMBUSTION PROCESS AT AN ANNUAL AVERAGE EFFICIENCY OF NO  LESS  THAN
 FIFTY-FIVE PERCENT MEASURED ON A LOWER HEATING VALUE BASIS; OR
   (3)  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 CONTINUITY ASSET OR WITHIN THE BOUNDA-
 RIES OF AN EXISTING OR PLANNED MICROGRID.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06374-01-3
 A. 3504                             2
              

 
   (B) "COMMUNITY CONTINUITY ASSET" MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES CRITICAL SERVICES TO THE PUBLIC DURING AN OUTAGE OF  THE  ELEC-
 TRIC DISTRIBUTION SYSTEM. COMMUNITY CONTINUITY 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 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 LOAD OR  GROUP  OF  INTERCONNECTED  LOADS  AND
 DISTRIBUTED  ENERGY  RESOURCES WITHIN CLEARLY DEFINED ELECTRICAL BOUNDA-
 RIES 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  ONE  HUNDRED  EIGHTY  DAYS  OF  THE EFFECTIVE DATE OF THIS
 SECTION, THE COMMISSION SHALL MODIFY THE CLEAN  ENERGY  FUND  INVESTMENT
 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 MODIFICA-
 TIONS 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-FOUR AND SUSTAINED EACH YEAR THROUGH
 CALENDAR YEAR TWO THOUSAND TWENTY-EIGHT;
   (C) INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND  PRACTI-
 CALITY  THROUGH COMPETITIVE PROCUREMENTS, STANDING-OFFERS, OR PRODUCTION
 INCENTIVES;
   (D) ANNUAL REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
 PROGRAM; AND
   (E)  ANY  OTHER  REQUIREMENTS  DEEMED APPROPRIATE BY THE COMMISSION TO
 EFFECTUATE THE PURPOSES OF THIS SECTION.
   § 2. The public authorities law is amended by  adding  a  new  section
 1020-nn to read as follows:
   §  1020-NN.  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 WITHOUT PRODUCING  GREENHOUSE  GASES  OR
 LOCAL COMBUSTION RELATED POLLUTANTS; OR
   (2)  GENERATES  ELECTRICITY  OR  ELECTRICITY  AND THERMAL ENERGY VIA A
 NON-COMBUSTION PROCESS AT AN ANNUAL AVERAGE EFFICIENCY OF NO  LESS  THAN
 FIFTY-FIVE PERCENT MEASURED ON A LOWER HEATING VALUE BASIS; OR
   (3)  GENERATES  ELECTRICITY  AND  THERMAL  ENERGY AT AN ANNUAL AVERAGE
 EFFICIENCY OF NO LESS THAN SEVENTY PERCENT MEASURED ON A  LOWER  HEATING
 A. 3504                             3
 
 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 CONTINUITY ASSET OR WITHIN THE  BOUNDA-
 RIES OF AN EXISTING OR PLANNED MICROGRID.
   (B) "COMMUNITY CONTINUITY ASSET" MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES  CRITICAL  SERVICES TO THE PUBLIC DURING AN OUTAGE OF THE ELEC-
 TRIC DISTRIBUTION SYSTEM.   COMMUNITY CONTINUITY 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  LOAD  OR GROUP OF INTERCONNECTED LOADS AND
 DISTRIBUTED ENERGY RESOURCES WITHIN CLEARLY DEFINED  ELECTRICAL  BOUNDA-
 RIES 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 ONE HUNDRED EIGHTY  DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
 SECTION, THE AUTHORITY SHALL MODIFY 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-FOUR AND
 SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-EIGHT;
   (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.
   § 3. This act shall take effect immediately.