S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7806
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 11, 2025
                                ___________
 
 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-x to read as follows:
   § 66-X. 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.
   (B) "COMMUNITY CONTINUITY ASSET" MEANS A PUBLIC OR PRIVATE ENTITY THAT
 PROVIDES CRITICAL SERVICES TO THE PUBLIC DURING AN OUTAGE OF  THE  ELEC-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06156-01-5
              

 A. 7806                             2
 
 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-SIX AND SUSTAINED EACH YEAR THROUGH
 CALENDAR YEAR TWO THOUSAND THIRTY;
   (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
 VALUE  BASIS  AND  REDUCES  THE  LOCAL  COMBUSTION RELATED AIR POLLUTANT
 OXIDES OF NITROGEN BY AT LEAST FIFTY PERCENT IN COMPARISON TO  THE  MOST
 A. 7806                             3
 
 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-SIX AND
 SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND THIRTY;
   (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.