S T A T E O F N E W Y O R K
________________________________________________________________________
1694--A
2023-2024 Regular Sessions
I N S E N A T E
January 13, 2023
___________
Introduced by Sens. PARKER, HOYLMAN-SIGAL -- read twice and ordered
printed, and when printed to be committed to the Committee on Energy
and Telecommunications -- recommitted to the Committee on Energy and
Telecommunications in accordance with Senate Rule 6, sec. 8 --
reported favorably from said committee and committed to the Committee
on Finance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the public service law and the energy law, in relation
to establishing the New York state grid modernization commission
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-x to read as follows:
§ 66-X. NEW YORK STATE GRID MODERNIZATION COMMISSION. 1. WITHIN ONE
HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE NEW YORK
STATE GRID MODERNIZATION COMMISSION SHALL BE ESTABLISHED. THE CHAIR OF
THE COMMISSION, THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION, THE
COMMISSIONER OF ECONOMIC DEVELOPMENT, THE COMMISSIONER OF TRANSPORTA-
TION, THE COMMISSIONER OF LABOR, THE COMMISSIONER OF THE DIVISION OF
HOMELAND SECURITY AND EMERGENCY SERVICES, THE COMMISSIONER OF AGRICUL-
TURE AND MARKETS, THE COMMISSIONER OF HEALTH, THE SECRETARY OF STATE AND
THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY SHALL EACH APPOINT TWO MEMBERS TO SERVE ON THE GRID MODERNIZA-
TION COMMISSION. THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE AND
SPEAKER OF THE ASSEMBLY SHALL EACH APPOINT ONE ADDITIONAL REPRESENTATIVE
TO SERVE ON THE GRID MODERNIZATION COMMISSION. THE GRID MODERNIZATION
COMMISSION SHALL CONSIST OF MEMBERS FROM COMMUNITIES OF COLOR, LOW-IN-
COME COMMUNITIES, AND COMMUNITIES BEARING DISPROPORTIONATE POLLUTION AND
CLIMATE CHANGE BURDENS, OR SHALL BE REPRESENTATIVES OF COMMUNITY-BASED
ORGANIZATIONS WITH EXPERIENCE AND A HISTORY OF ADVOCACY ON ENVIRONMENTAL
JUSTICE ISSUES, AND SHALL INCLUDE AT LEAST TWO REPRESENTATIVES FROM NEW
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05756-02-4
S. 1694--A 2
YORK CITY COMMUNITIES, TWO REPRESENTATIVES FROM RURAL COMMUNITIES, AND
TWO REPRESENTATIVES FROM UPSTATE NEW YORK URBAN COMMUNITIES. MEMBERS OF
THE GRID MODERNIZATION COMMISSION SHALL SERVE WITHOUT COMPENSATION.
2. (A) THE GRID MODERNIZATION COMMISSION SHALL CONDUCT A STUDY OF
RESEARCH, DEVELOPMENT, AND DEMONSTRATIONS OF ELECTRIC GRID MODERNIZATION
THAT ADDRESS THE PRINCIPAL CHALLENGES IDENTIFIED IN THE NEW YORK INDE-
PENDENT SYSTEM OPERATOR'S 2021-2040 SYSTEM & RESOURCE OUTLOOK. THE GRID
MODERNIZATION COMMISSION'S STUDY SHALL IDENTIFY TOOLS, RESOURCES, AND
DEPLOYMENT MODELS THAT MAY ENABLE IMPROVED PERFORMANCE THROUGH THE
ADOPTION OF EMERGING, COMMERCIALLY AVAILABLE OR ADVANCED GRID TECHNOLO-
GIES OR SOLUTIONS, INCLUDING:
(I) MICRO-GRIDS;
(II) DISTRIBUTED ENERGY RESOURCES;
(III) ENERGY STORAGE;
(IV) ELECTRIC VEHICLES;
(V) ELECTRIC VEHICLE CHARGING INFRASTRUCTURE;
(VI) INTEGRATED INFORMATION AND COMMUNICATIONS SYSTEMS;
(VII) TRANSACTIVE ENERGY SYSTEMS;
(VIII) ADVANCED DEMAND MANAGEMENT SYSTEMS; AND
(IX) THE ROLE OF STATE AND LOCAL REGULATORY AUTHORITIES IN ENABLING A
ROBUST FUTURE ELECTRIC GRID TO ENSURE THAT:
(A) ELECTRIC UTILITIES REMAIN FINANCIALLY VIABLE;
(B) ELECTRIC UTILITIES MAKE THE NEEDED INVESTMENTS THAT ENSURE A RELI-
ABLE, SECURE, AND RESILIENT GRID; AND
(C) COSTS INCURRED TO TRANSFORM TO AN INTEGRATED GRID ARE ALLOCATED
AND RECOVERED RESPONSIBLY, EFFICIENTLY, AND EQUITABLY.
(B) THE GRID MODERNIZATION COMMISSION MAY SOLICIT INPUT FROM STAKE-
HOLDER INTERESTS, INCLUDING BUT NOT LIMITED TO:
(I) LOCAL GOVERNMENTS;
(II) MUNICIPAL UTILITIES;
(III) UTILITY COMPANIES;
(IV) RURAL ELECTRIC COOPERATIVES;
(V) LABOR UNIONS;
(VI) RATEPAYERS;
(VII) TRADE ASSOCIATIONS;
(VIII) GENERATORS;
(IX) COMMUNITY ORGANIZATIONS; AND
(X) TRANSMISSIONS OWNERS.
(C) THE GRID MODERNIZATION COMMISSION SHALL HOLD AT LEAST ONE PUBLIC
HEARING AND MAY BASE STUDY FINDINGS ON EXISTING LITERATURE.
(D) ANY REASONABLE COSTS ASSOCIATED WITH THE FUNCTIONING OF THE GRID
MODERNIZATION COMMISSION SHALL BE BORNE BY THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY.
(E) NO LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS
SECTION, THE GRID MODERNIZATION COMMISSION SHALL ISSUE A REPORT ON THE
FINDINGS OF ITS STUDY TO THE STATE ENERGY PLANNING BOARD CONTAINING ANY
RECOMMENDATIONS APPROPRIATE FOR CONSIDERATION IN THE DEVELOPMENT OF THE
STATE ENERGY PLAN. THE GRID MODERNIZATION COMMISSION SHALL ISSUE AN
ANNUAL REPORT FOLLOWING THE SUBMISSION OF ITS INITIAL REPORT TO THE
STATE ENERGY PLANNING BOARD WITH ANY NECESSARY UPDATES.
3. (A) THE GRID MODERNIZATION COMMISSION SHALL ESTABLISH A GRANT
PROGRAM TO CARRY OUT ELIGIBLE PROJECTS RELATED TO THE MODERNIZATION OF
THE ELECTRIC GRID, INCLUDING THE APPLICATION OF TECHNOLOGIES TO IMPROVE
OBSERVABILITY, ADVANCED CONTROLS, AND PREDICTION OF SYSTEM PERFORMANCE
ON THE DISTRIBUTION SYSTEM.
(B) A PROJECT ELIGIBLE FOR A GRANT UNDER THIS SUBDIVISION SHALL:
S. 1694--A 3
(I) BE DESIGNED TO IMPROVE THE PERFORMANCE AND EFFICIENCY OF THE
FUTURE ELECTRIC GRID, WHILE ENSURING THE CONTINUED PROVISION OF SAFE,
SECURE, RELIABLE, AND AFFORDABLE POWER;
(II) DEMONSTRATE:
(A) SECURE INTEGRATION AND MANAGEMENT OF TWO OR MORE ENERGY RESOURCES,
INCLUDING DISTRIBUTED ENERGY GENERATION, COMBINED HEAT AND POWER,
MICRO-GRIDS, ENERGY STORAGE, ELECTRIC VEHICLES, ENERGY EFFICIENCY,
DEMAND RESPONSE, AND INTELLIGENT LOADS; AND
(B) SECURE INTEGRATION AND INTEROPERABILITY OF COMMUNICATIONS AND
INFORMATION TECHNOLOGIES; AND
(III) BE SUBJECT TO THE COMPLIANCE FUNDING PROGRAM REQUIREMENTS OF THE
FEDERAL INFRASTRUCTURE INVESTMENT AND JOBS ACT.
(C) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IS
AUTHORIZED TO MAKE LOANS FOR THE COST OF CARRYING OUT ELIGIBLE PROJECTS
AND TO ENTER PUBLIC-PRIVATE PARTNERSHIPS TO CO-DEVELOP PROJECTS. THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL INVEST OR
DIRECT AVAILABLE AND RELEVANT RESOURCES IN A MANNER DESIGNED TO ACHIEVE
A GOAL FOR DISADVANTAGED COMMUNITIES TO RECEIVE FORTY-FIVE PERCENT OF
OVERALL BENEFITS OF SPENDING ON THE PROGRAM, INCLUDING BUT NOT LIMITED
TO ANY WORKFORCE DEVELOPMENT, EFFICIENCY UPGRADES, MICRO-GRID REDUCTION,
OR DISTRIBUTED RESOURCES RESULTING FROM SUCH SPENDING; PROVIDED, HOWEV-
ER, THAT DISADVANTAGED COMMUNITIES SHALL RECEIVE NO LESS THAN FORTY
PERCENT OF THE OVERALL BENEFITS OF SPENDING.
4. (A) SUBJECT TO PARAGRAPH (B) OF THIS SUBDIVISION, THE GRID MODERN-
IZATION COMMISSION SHALL ESTABLISH AND FACILITATE A COLLABORATIVE PROC-
ESS TO DEVELOP MODEL GRID ARCHITECTURE AND A SET OF FUTURE SCENARIOS FOR
THE ELECTRIC GRID TO EXAMINE THE IMPACTS OF DIFFERENT COMBINATIONS OF
RESOURCES (INCLUDING DIFFERENT QUANTITIES OF DISTRIBUTED ENERGY
RESOURCES AND LARGE-SCALE, CENTRAL GENERATION) ON THE ELECTRIC GRID.
(B) THE GRID ARCHITECTURE AND SCENARIOS DEVELOPED UNDER PARAGRAPH (A)
OF THIS SUBDIVISION SHALL ACCOUNT FOR DIFFERENCES IN MARKET STRUCTURE,
INCLUDING AN EXAMINATION OF THE POTENTIAL FOR STRANDED COSTS IN EACH
TYPE OF MARKET STRUCTURE.
(C) BASED ON THE FINDINGS OF GRID ARCHITECTURE DEVELOPED UNDER PARA-
GRAPH (A) OF THIS SUBDIVISION, THE GRID MODERNIZATION COMMISSION SHALL:
(I) DETERMINE WHETHER ANY ADDITIONAL POLICIES ARE NECESSARY TO ENSURE
THE INTEROPERABILITY OF GRID SYSTEMS AND ASSOCIATED COMMUNICATIONS
NETWORKS; AND
(II) MAKE RECOMMENDATIONS FOR SUCH ADDITIONAL STANDARDS OR POLICIES.
§ 2. Section 6-104 of the energy law is amended by adding a new subdi-
vision 6 to read as follows:
6. IN THE DEVELOPMENT OF THE STATE ENERGY PLAN, THE BOARD SHALL
CONSULT WITH THE GRID MODERNIZATION COMMISSION AND CONSIDER THE REASON-
ABLENESS, EFFICACY AND EXPENSE OF INCLUDING IN THE STATE ENERGY PLAN THE
RECOMMENDATIONS CONTAINED IN THE GRID MODERNIZATION COMMISSION'S REPORT
ISSUED PURSUANT TO SECTION SIXTY-SIX-X OF THE PUBLIC SERVICE LAW.
§ 3. This act shall take effect immediately.
