S T A T E O F N E W Y O R K
________________________________________________________________________
8240
2019-2020 Regular Sessions
I N A S S E M B L Y
June 10, 2019
___________
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-p to read as follows:
§ 66-P. 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 AT AN ANNUAL AVERAGE EFFICIENCY OF NO
LESS THAN FIFTY-FIVE 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; OR
(2) 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 OUTAGE ASSET OR WITHIN THE BOUNDARIES
OF AN EXISTING OR PLANNED MICROGRID.
(B) "COMMUNITY OUTAGE ASSET" MEANS A PUBLIC OR PRIVATE ENTITY THAT
PROVIDES CRITICAL SERVICES TO THE PUBLIC DURING AN OUTAGE OF THE ELEC-
TRIC DISTRIBUTION SYSTEM. COMMUNITY OUTAGE ASSETS SHALL INCLUDE, BUT ARE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11992-01-9
A. 8240 2
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 GROUP OF INTERCONNECTED LOADS AND DISTRIBUTED
ENERGY RESOURCES WITHIN CLEARLY DEFINED ELECTRICAL BOUNDARIES 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 FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
COMMISSION SHALL COMMENCE MODIFICATION OF THE CLEAN ENERGY FUND INVEST-
MENT 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
MODIFICATIONS 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 AND SUSTAINED EACH YEAR THROUGH CALEN-
DAR YEAR TWO THOUSAND TWENTY-FOUR;
(C) INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND PRACTI-
CALITY THROUGH COMPETITIVE PROCUREMENTS, STANDING-OFFERS, OR PRODUCTION
INCENTIVES;
(D) INCENTIVE STRUCTURES THAT ARE DESIGNED TO MAXIMIZE THE CO-DEPLOY-
MENT OF CLEAN AND RESILIENT DISTRIBUTED ENERGY RESOURCES WITH SOLAR AND
ENERGY STORAGE RESOURCES;
(E) ANNUAL REPORTS ON THE ACHIEVEMENTS AND EFFECTIVENESS OF THE
PROGRAM; AND
(F) ANY OTHER REQUIREMENTS DEEMED APPROPRIATE BY THE COMMISSION TO
EFFECTUATE THE PURPOSES OF THIS SECTION.
§ 2. Section 1020-ll of the public authorities law, as renumbered by
chapter 520 of the laws of 2018, is renumbered section 1020-zz.
§ 3. Sections 1020-jj, 1020-kk and 1020-ll of the public authorities
law, sections 1020-jj and 1020-kk as renumbered by chapter 520 of the
laws of 2018 and section 1020-ll as renumbered by chapter 415 of the
laws of 2017, are renumbered sections 1020-ww, 1020-xx, and 1020-yy and
a new section 1020-jj is added to read as follows:
§ 1020-JJ. 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 AT AN ANNUAL AVERAGE EFFICIENCY OF NO
LESS THAN FIFTY-FIVE PERCENT MEASURED ON A LOWER HEATING VALUE BASIS AND
A. 8240 3
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; OR
(2) 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 OUTAGE ASSET OR WITHIN THE BOUNDARIES
OF AN EXISTING OR PLANNED MICROGRID.
(B) "COMMUNITY OUTAGE ASSET" MEANS A PUBLIC OR PRIVATE ENTITY THAT
PROVIDES CRITICAL SERVICES TO THE PUBLIC DURING AN OUTAGE OF THE ELEC-
TRIC DISTRIBUTION SYSTEM. COMMUNITY OUTAGE 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 GROUP OF INTERCONNECTED LOADS AND DISTRIBUTED
ENERGY RESOURCES WITHIN CLEARLY DEFINED ELECTRICAL BOUNDARIES 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 FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
AUTHORITY SHALL COMMENCE THE CONSIDERATION OF MODIFICATIONS TO 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 AND
SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-FOUR;
(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.
§ 4. This act shall take effect immediately.