S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1694--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by  Sens.  PARKER,  HOYLMAN-SIGAL  -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Energy
   and  Telecommunications  -- recommitted to the Committee on Energy and
   Telecommunications in  accordance  with  Senate  Rule  6,  sec.  8  --
   reported  favorably from said committee and committed to the Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 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-x to read as follows:
   §  66-X.  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05756-02-4
              

 S. 1694--A                          2
 
 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.
   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;
   (IX) COMMUNITY ORGANIZATIONS; AND
   (X) TRANSMISSIONS OWNERS.
   (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:
 S. 1694--A                          3
 
   (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:
   (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-X OF THE PUBLIC SERVICE LAW.
   § 3. This act shall take effect immediately.