S T A T E   O F   N E W   Y O R K
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                                   1694
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 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-u to read as follows:
   § 66-U. 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05756-01-3
 S. 1694                             2
              

 
   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; AND
   (IX) COMMUNITY ORGANIZATIONS.
   (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:
   (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:
 S. 1694                             3
 
   (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-U OF THE PUBLIC SERVICE LAW.
   § 3. This act shall take effect immediately.