S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    541
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M. of A. PAULIN, CUNNINGHAM -- 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 developing microgrids in preparation for extreme weath-
   er events and other risks to public security

   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. MICROGRID DEVELOPMENT PROGRAM. 1. DEFINITIONS. AS USED IN THIS
 SECTION:
   (A)  "COMMUNITY  OUTAGE  ASSET"  MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES CRITICAL SERVICES TO THE PUBLIC  DURING  AN  EXTENDED  ELECTRIC
 DISTRIBUTION  OUTAGE. COMMUNITY OUTAGE ASSETS SHALL INCLUDE, BUT ARE NOT
 LIMITED TO:   TELECOMMUNICATIONS PROVIDERS,  HOSPITALS,  NURSING  HOMES,
 LARGE  RETAIL  STORES,  SUPERMARKETS, GOVERNMENT AGENCIES, DATA CENTERS,
 TRANSPORTATION SYSTEMS, FINANCIAL  INSTITUTIONS,  GAS  STATIONS,  EDUCA-
 TIONAL  INSTITUTIONS, LARGE MULTI-FAMILY RESIDENTIAL HOUSING, WASTEWATER
 TREATMENT FACILITIES, COMMUNITY CENTERS AND OTHER  CUSTOMERS  DEEMED  BY
 THE  COMMISSION  TO  PROVIDE A CRITICAL SERVICE TO THE PUBLIC THAT WOULD
 PROMOTE OR ENHANCE HEALTH AND SAFETY DURING AN OUTAGE  OF  THE  ELECTRIC
 DISTRIBUTION SYSTEM;
   (B)  "EXTENDED  ELECTRIC DISTRIBUTION OUTAGE" MEANS A TOTAL OR PARTIAL
 OUTAGE OF AN ELECTRIC CORPORATION'S DISTRIBUTION SYSTEM  THAT  CONTINUES
 FOR A PERIOD OF TWENTY-FOUR HOURS OR LONGER;
   (C)  "UNINTERRUPTED"  MEANS THAT THE OUTPUT OF THE MICROGRID SYSTEM IS
 DELIVERED TO  THE  END-USE  CUSTOMER  THROUGHOUT  AN  EXTENDED  ELECTRIC
 DISTRIBUTION OUTAGE, WITH THE EXCEPTION OF MOMENTARY INTERRUPTIONS ASSO-
 CIATED  WITH  TRANSITIONS  TO  AND  FROM GRID PARALLEL AND GRID ISLANDED
 OPERATIONS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02060-01-5
 A. 541                              2
 
   (D) "MICROGRID" SHALL MEAN 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 ELEC-
 TRIC  GRID.    A  MICROGRID CAN CONNECT AND DISCONNECT FROM THE ELECTRIC
 GRID TO ENABLE IT TO OPERATE IN BOTH GRID-CONNECTED OR ISLAND-MODE.
   2.  ON OR WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
 SECTION, THE COMMISSION SHALL, AFTER A HEARING HELD ON NOTICE, ADOPT  AN
 ORDER  REQUIRING  THE  NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT
 AUTHORITY TO ESTABLISH A PROGRAM TO SUPPORT THE  DEVELOPMENT  OF  MICRO-
 GRIDS  THAT ARE CAPABLE OF PROVIDING AN UNINTERRUPTED SUPPLY OF POWER TO
 ONE OR  MORE  COMMUNITY  OUTAGE  ASSETS  THROUGH  AN  EXTENDED  ELECTRIC
 DISTRIBUTION  OUTAGE.  SUCH PROGRAM SHALL PROVIDE OVERALL FUNDING IN THE
 AMOUNT OF SEVENTY-FIVE MILLION DOLLARS FOR THE YEARS TWO THOUSAND  TWEN-
 TY-SIX  THROUGH TWO THOUSAND THIRTY.  SUCH PROGRAM SHALL INCLUDE A PREF-
 ERENCE FOR THOSE MICROGRIDS THAT:
   (A) MAXIMIZE ANNUAL REDUCTIONS IN CARBON DIOXIDE EQUIVALENT, OXIDES OF
 NITROGEN, SULFUR DIOXIDE AND PARTICULATE MATTER EMISSIONS ACHIEVED RELA-
 TIVE TO MARGINAL GRID EMISSIONS FOR THE REGION IN WHICH THE  PROJECT  IS
 LOCATED.  FOR  PURPOSES  OF  THIS  SECTION  THE  COMMISSION SHALL DEFINE
 MARGINAL EMISSIONS USING THE SAME METRIC OR METRICS  THAT  ARE  USED  TO
 QUANTIFY  EMISSIONS  REDUCTIONS  ACHIEVED BY OTHER NEW YORK STATE ENERGY
 RESEARCH AND DEVELOPMENT AUTHORITY CLEAN ENERGY PROGRAMS;
   (B) DISPLACE OR OTHERWISE  REDUCE  THE  OPERATION  OF  DIESEL  BACK-UP
 GENERATORS; AND
   (C)  ARE MORE CAPABLE OF BEING EXPEDITIOUSLY PERMITTED, INTERCONNECTED
 AND COMMISSIONED IN PREPARATION FOR EXTREME  WEATHER  EVENTS  AND  OTHER
 GRID RELATED RISKS.
   §  2.  The  public  authorities law is amended by adding a new section
 1020-nn to read as follows:
   § 1020-NN. MICROGRID DEVELOPMENT PROGRAM. 1. DEFINITIONS. AS  USED  IN
 THIS SECTION:
   (A)  "COMMUNITY  OUTAGE  ASSET"  MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES CRITICAL SERVICES TO THE PUBLIC  DURING  AN  EXTENDED  ELECTRIC
 DISTRIBUTION  OUTAGE. COMMUNITY OUTAGE ASSETS SHALL INCLUDE, BUT ARE NOT
 LIMITED TO:   TELECOMMUNICATIONS PROVIDERS,  HOSPITALS,  NURSING  HOMES,
 LARGE  RETAIL  STORES,  SUPERMARKETS, GOVERNMENT AGENCIES, DATA CENTERS,
 TRANSPORTATION SYSTEMS, FINANCIAL  INSTITUTIONS,  GAS  STATIONS,  EDUCA-
 TIONAL  INSTITUTIONS, HEALTH CARE PROVIDERS, LARGE MULTI-FAMILY RESIDEN-
 TIAL HOUSING, WASTEWATER TREATMENT  FACILITIES,  COMMUNITY  CENTERS  AND
 OTHER  CUSTOMERS  DEEMED BY THE COMMISSION TO PROVIDE A CRITICAL SERVICE
 TO THE PUBLIC THAT WOULD PROMOTE OR ENHANCE HEALTH AND SAFETY DURING  AN
 OUTAGE OF THE ELECTRIC DISTRIBUTION SYSTEM;
   (B)  "EXTENDED  ELECTRIC DISTRIBUTION OUTAGE" MEANS A TOTAL OR PARTIAL
 OUTAGE OF THE AUTHORITY'S ELECTRIC DISTRIBUTION  SYSTEM  THAT  CONTINUES
 FOR A PERIOD OF TWENTY-FOUR HOURS OR LONGER;
   (C)  "UNINTERRUPTED"  MEANS THAT THE OUTPUT OF THE MICROGRID SYSTEM IS
 DELIVERED TO  THE  END-USE  CUSTOMER  THROUGHOUT  AN  EXTENDED  ELECTRIC
 DISTRIBUTION OUTAGE, WITH THE EXCEPTION OF MOMENTARY INTERRUPTIONS ASSO-
 CIATED  WITH  TRANSITIONS  TO  AND  FROM GRID PARALLEL AND GRID ISLANDED
 OPERATIONS; AND
   (D) "MICROGRID" SHALL MEAN 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 ELEC-
 TRIC  GRID.    A  MICROGRID CAN CONNECT AND DISCONNECT FROM THE ELECTRIC
 GRID TO ENABLE IT TO OPERATE IN BOTH GRID-CONNECTED OR ISLAND-MODE.
 A. 541                              3
 
   2. ON OR WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF  THIS
 SECTION, THE AUTHORITY SHALL ESTABLISH A PROGRAM TO SUPPORT THE DEVELOP-
 MENT OF MICROGRIDS THAT ARE CAPABLE OF PROVIDING AN UNINTERRUPTED SUPPLY
 OF  POWER  TO  ONE  OR  MORE COMMUNITY OUTAGE ASSETS THROUGH AN EXTENDED
 ELECTRIC DISTRIBUTION OUTAGE. SUCH PROGRAM SHALL PROVIDE OVERALL FUNDING
 IN  THE AMOUNT OF TWENTY-FIVE MILLION DOLLARS FOR THE YEARS TWO THOUSAND
 TWENTY-SIX THROUGH TWO THOUSAND THIRTY. SUCH  PROGRAM  SHALL  INCLUDE  A
 PREFERENCE FOR THOSE MICROGRIDS THAT:
   (A) MAXIMIZE ANNUAL REDUCTIONS IN CARBON DIOXIDE EQUIVALENT, OXIDES OF
 NITROGEN, SULFUR DIOXIDE AND PARTICULATE MATTER EMISSIONS ACHIEVED RELA-
 TIVE  TO  MARGINAL GRID EMISSIONS FOR THE AUTHORITY'S SERVICE TERRITORY.
 FOR PURPOSES OF THIS SECTION THE AUTHORITY SHALL DEFINE  MARGINAL  EMIS-
 SIONS  USING  THE SAME METRIC OR METRICS THAT ARE USED TO QUANTIFY EMIS-
 SIONS REDUCTIONS ACHIEVED BY OTHER NEW YORK STATE  ENERGY  RESEARCH  AND
 DEVELOPMENT AUTHORITY CLEAN ENERGY PROGRAMS;
   (B)  DISPLACE  OR  OTHERWISE  REDUCE  THE  OPERATION OF DIESEL BACK-UP
 GENERATORS; AND
   (C) ARE MORE CAPABLE OF BEING EXPEDITIOUSLY PERMITTED,  INTERCONNECTED
 AND  COMMISSIONED  IN  PREPARATION  FOR EXTREME WEATHER EVENTS AND OTHER
 GRID RELATED RISKS.
   § 3. This act shall take effect immediately.