NY State Senate Bill 2023-S4579A

Senate Bill S4579A

2023-2024 Legislative Session

Relates to developing microgrids in preparation for extreme weather events and other risks to public security

download bill text pdf

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 13, 2024	reported and committed to finance
Feb 08, 2024	print number 4579a
Feb 08, 2024	amend and recommit to energy and telecommunications
Jan 03, 2024	referred to energy and telecommunications
May 23, 2023	reported and committed to finance
Feb 10, 2023	referred to energy and telecommunications

Votes

- Feb 13, 2024 - Energy And Telecommunications Committee Vote
  S4579A
  
  8
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Feb 13, 2024
      
      aye (8)
      
      Borrello
      
      Gonzalez
      
      Hinchey
      
      Kavanagh
      
      Kennedy
      
      Mannion
      
      Mattera
      
      Parker
      
      aye wr (1)
      
      O'Mara
  May 23, 2023 - Energy And Telecommunications Committee Vote
  S4579A
  
  8
  
  Aye
  
  1
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: May 23, 2023
      
      aye (8)
      
      Gonzalez
      
      Hinchey
      
      Kavanagh
      
      Kennedy
      
      Mannion
      
      Mattera
      
      O'Mara
      
      Parker
      
      nay (1)
      
      Walczyk

Bill Amendments

Original

A (Active)

2023-S4579 - Details

See Assembly Version of this Bill:: A2398
Current Committee:: Senate Finance
Law Section:: Public Service Law
Laws Affected:: Add §66-x, Pub Serv L; add §1020-nn, Pub Auth L
Versions Introduced in 2021-2022 Legislative Session:: S4321, A6760

2023-S4579 - Summary

Establishes a program to develop microgrids that are capable of providing an uninterrupted supply of power to one or more community outage assets through an extended electric distribution outage.

2023-S4579 - Sponsor Memo

                                 
BILL NUMBER: S4579

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public service law and the public authorities law,
in relation to developing microgrids in preparation for extreme weather
events and other risks to public security

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to establish a program to encourage the
development of microgrids that will ensure uninterrupted electric power
at facilities which provide vital services to the public in the event of
an extended electric distribution outage.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new Section 66-q to the Public Service Law which:
establishes the "Microgrid Development Program" that financially
supports defined "Microgrids" that most effectively reduce emissions
while meeting strict reliability criteria; defines "Community Outage

Asset" customers that provide vital services to the public in the event
of "Extended Electric Distribution Outages"; defines "Uninterrupted"
with respect to qualified Microgrids; requires the Public Service
Commission, in consultation with the New York State Energy Research and
Development Authority (NYSERDA), to adopt a program to support the
development of Microgrids and their deployment by Community Outage Asset
customers. This Section also requires:  NYSERDA to administer the
program; planned expenditures on the program total seventy-five million
dollars from 2022 to 2026; the use of incentive structures that maximize
reductions of carbon dioxide (CO2), oxides of nitrogen (NOx), sulfur
dioxide. (S02), and particulate matter (PM); displace diesel generation,
and are capable-of rapid deployment in preparation for enhanced climate
induced severe weather and other grid risks.

Section 2: Requires the Long Island Power Authority to adopt the same
program. This Section requires LIPA to spend no less than $25 million
dollars from 2022 to 2026.

Section 3: Provides that the act would take effect immediately.

 
JUSTIFICATION:

The bill is intended to ensure continuity of services for communities
during significant outages of the electric grid. New York has experi-
enced increasingly severe weather in recent years. For instance, in
August 2020 Tropical Storm Isaias caused extensive outages and left
503,000 customers without power for up to eight days, costing up to $350
million dollars in damages. Our changing climate can be expected to
increase the frequency, intensity, and duration of extreme weather
events. In addition, the state's energy infrastructure is the target of
a growing threat from cyber criminals and other bad actors including
hostile foreign governments. An uninterrupted supply of electricity is
indispensable for communications, health and safety, access to food and
essential supplies, social interactions, financial transactions, trans-
portation, and public and personal security. As extreme weather events
proliferate and our dependence on an uninterrupted supply of electricity
grows the state's energy policies have not provided a sufficient focus
on securing critical services from the risk of distribution system
outages. The state's "NY Prize" microgrid program has yet to produce its
intended outcomes, the incentive programs that were historically avail-
able to support customer-sited projects including microgrids have been
discontinued, and the commission's "value of distributed energy
resources" initiative has not been extended to behind the meter projects
that are designed to power vital services through outages of the
distribution system.

The bill will work toward the goal of ensuring that there is no such
thing as a "widespread blackout" of key community services in advance of
future weather events or intentional attacks. Instead, citizens and
emergency management officials will have the assurance that certain
types of facilities that provide important public services will be oper-
ational during outages of the electric grid. For instance, private tele-
communications providers serve both citizens and first responders during
public emergencies. Similarly, supermarkets and large retail stores
serve as pre-positioned supplies of food, clothes, water, building
supplies, and equipment necessary for storm preparation, recovery
efforts. By establishing a renewed focus on securing important services
from the risk of severe weather, while simultaneously requiring the
greatest feasible degree of emission reductions, the bill will help New
York address both the causes and the consequences of climate change.

 
PRIOR LEGISLATIVE HISTORY:

2022 S 4321 COMRIE / A 6760 Paulin

A.6760 of 2021 and 2022, referred to energy. Same as S.4321 of 2021 and
2022, referred to energy and telecommunications.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S4579 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4579
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 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-u to read as follows:
   § 66-U. 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.
                                                            LBD03871-01-3

 S. 4579                             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-FOUR THROUGH TWO THOUSAND TWENTY-EIGHT.  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 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.
 S. 4579                             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-FOUR  THROUGH  TWO  THOUSAND  TWENTY-EIGHT.  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.

2023-S4579A (ACTIVE) - Details

See Assembly Version of this Bill:: A2398
Current Committee:: Senate Finance
Law Section:: Public Service Law
Laws Affected:: Add §66-x, Pub Serv L; add §1020-nn, Pub Auth L
Versions Introduced in 2021-2022 Legislative Session:: S4321, A6760

2023-S4579A (ACTIVE) - Summary

Establishes a program to develop microgrids that are capable of providing an uninterrupted supply of power to one or more community outage assets through an extended electric distribution outage.

2023-S4579A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4579A

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public service law and the public authorities law,
in relation to developing microgrids in preparation for extreme weather
events and other risks to public security

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to establish a program to encourage the
development of microgrids that will ensure uninterrupted electric power
at facilities which provide vital services to the public in the event of
an extended electric distribution outage.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new Section 66-q to the Public Service Law which:
establishes the "Microgrid Development Program" that financially
supports defined "Microgrids" that most effectively reduce emissions
while meeting strict reliability criteria; defines "Community Outage

Asset" customers that provide vital services to the public in the event
of "Extended Electric Distribution Outages"; defines "Uninterrupted"
with respect to qualified Microgrids; requires the Public Service
Commission, in consultation with the New York State Energy Research and
Development Authority (NYSERDA), to adopt a program to support the
development of Microgrids and their deployment by Community Outage Asset
customers. This Section also requires:  NYSERDA to administer the
program; planned expenditures on the program total seventy-five million
dollars from 2022 to 2026; the use of incentive structures that maximize
reductions of carbon dioxide (CO2), oxides of nitrogen (NOx), sulfur
dioxide. (502), and particulate matter (PM); displace diesel generation,
and are capable-of rapid deployment in preparation for enhanced climate
induced severe weather and other grid risks.

Section 2: Requires the Long Island Power Authority to adopt the same
program. This Section requires LIPA to spend no less than $25 million
dollars from 2022 to 2026.

Section 3: Provides that the act would take effect immediately.

 
JUSTIFICATION:

The bill is intended to ensure continuity of services for communities
during significant outages of the electric grid. New York has experi-
enced increasingly severe weather in recent years. For instance, in
August 2020 Tropical Storm Isaias caused extensive outages and left
503,000 customers without power for up to eight days, costing up to $350
million dollars in damages. Our changing climate can be expected to
increase the frequency, intensity, and duration of extreme weather
events. In addition, the state's energy infrastructure is the target of
a growing threat from cyber criminals and other bad actors including
hostile foreign governments. An uninterrupted supply of electricity is
indispensable for communications, health and safety, access to food and
essential supplies, social interactions, financial transactions, trans-
portation, and public and personal security. As extreme weather events
proliferate and our dependence on an uninterrupted supply of electricity
grows the state's energy policies have not provided a sufficient focus
on securing critical services from the risk of distribution system
outages. The state's "NY Prize" microgrid program has yet to produce its
intended outcomes, the incentive programs that were historically avail-
able to support customer-sited projects including microgrids have been
discontinued, and the commission's "value of distributed energy
resources" initiative has not been extended to behind the meter projects
that are designed to power vital services through outages of the
distribution system.

The bill will work toward the goal of ensuring that there is no such
thing as a "widespread blackout" of key community services in advance of
future weather events or intentional attacks. Instead, citizens and
emergency management officials will have the assurance that certain
types of facilities that provide important public services will be oper-
ational during outages of the electric grid. For instance, private tele-
communications providers serve both citizens and first responders during
public emergencies. Similarly, supermarkets and large retail stores
serve as pre-positioned supplies of food, clothes, water, building
supplies, and equipment necessary for storm preparation, recovery
efforts. By establishing a renewed focus on securing important services
from the risk of severe weather, while simultaneously requiring the
greatest feasible degree of emission reductions, the bill will help New
York address both the causes and the consequences of climate change.

 
PRIOR LEGISLATIVE HISTORY:

2022 S 4321 COMRIE / A 6760 Paulin

A.6760 of 2021 and 2022, referred to energy. Same as 5.4321 of 2021 and
2022, referred to energy and telecommunications.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S4579A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4579--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations  --  recommitted  to  the Committee on Energy and Telecommuni-
   cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03871-02-4

 S. 4579--A                          2
 
 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.
   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-FIVE  THROUGH TWO THOUSAND TWENTY-NINE.  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 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-
 S. 4579--A                          3
 
 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 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-FIVE THROUGH TWO THOUSAND TWENTY-NINE. 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.

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