S T A T E O F N E W Y O R K
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10635
I N A S S E M B L Y
March 13, 2026
___________
Introduced by M. of A. BRONSON -- read once and referred to the Commit-
tee on Energy
AN ACT to amend the public service law, in relation to exempting renewa-
ble energy systems from certain requirements related to energy facili-
ties (Part A); to amend part JJJ of chapter 58 of the laws of 2020,
amending the public service law and other laws relating to accelerat-
ing the growth of renewable energy facilities to meet critical state
energy policy goals, in relation to directing the New York power
authority to propose a minimum of two priority transmission projects
to address the areas of highest need on the bulk transmission system
(Part B); and to amend the general municipal law and the education
law, in relation to exempting payment in lieu of taxes revenue from
property tax cap calculations (Part C);
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "affordable
clean energy (ACE) act".
§ 2. This act enacts into law major components of legislation which
are necessary to implement the "affordable clean energy (ACE) act". Each
component is wholly contained within a Part identified as Parts A
through C. The effective date for each particular provision contained
within such Part is set forth in the last section of such Part. Any
provision in any section contained within a Part, including the effec-
tive date of the Part, which makes a reference to a section "of this
act", when used in connection with that particular component, shall be
deemed to mean and refer to the corresponding section of the Part in
which it is found. Section four of this act sets forth the general
effective date of this act.
PART A
Section 1. Subdivision 1 of section 68 of the public service law, as
amended by section 5 of part X of chapter 57 of the laws of 2013, is
amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08364-03-6
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1. Certificate required. No gas corporation or electric corporation
shall begin construction of a gas plant or electric plant, EXCEPT FOR
RENEWABLE ENERGY SYSTEMS AS DEFINED IN SECTION SIXTY-SIX-P OF THIS ARTI-
CLE OR ENERGY STORAGE SYSTEMS NOT PAIRED WITH ELECTRIC GENERATION
SYSTEMS, without first having obtained the permission and approval of
the commission. No such corporation shall exercise any right or privi-
lege under any franchise hereafter granted, or under any franchise here-
tofore granted but not heretofore actually exercised, or the exercise of
which shall have been suspended for more than one year, without first
having obtained a certificate of public convenience and necessity issued
by the commission. Before such certificate shall be issued a certified
copy of the charter of such corporation shall be filed in the office of
the commission, together with a verified statement of the president and
secretary of the corporation, showing that it has received the required
consent of the proper municipal authorities. The commission shall have
power to grant the permission and approval herein specified whenever it
shall after due hearing determine that such construction or such exer-
cise of the right, privilege or franchise is convenient and necessary
for the public service. In making such a determination, the commission
shall consider the economic feasibility of the corporation, the corpo-
ration's ability to finance improvements of a gas plant or electric
plant, render safe, adequate and reliable service, and provide just and
reasonable rates, and whether issuance of a certificate is in the public
interest. Except as provided in article fourteen-A of the general munic-
ipal law, no municipality shall build, maintain and operate for other
than municipal purposes any works or systems for the manufacture and
supplying of gas or electricity for lighting purposes without a certif-
icate of authority granted by the commission. If the certificate of
authority is refused, no further proceedings shall be taken by such
municipality before the commission, but a new application may be made
therefor after one year from the date of such refusal.
§ 2. The closing paragraph of section 69 of the public service law, as
amended by chapter 222 of the laws of 1991, is amended to read as
follows:
A permission or approval by the public service commission of a merger
or consolidation shall not be deemed to be an approval of the value of
any property or accounts of any company involved in the merger at the
time of the merger, nor shall any such permission or approval be
construed to be a certification by the public service commission that
the bonds and/or capital stock of any such merged, merging or consol-
idating corporations are represented in value by commensurate physical
assets of such corporations, nor shall such approval be evidence as to
the value of any such property or account in subsequent rate proceedings
or before any court or public body. NO PROVISION OF THIS SECTION SHALL
APPLY TO ELECTRIC CORPORATIONS WHERE ELECTRICITY IS GENERATED FROM
RENEWABLE ENERGY SYSTEMS AS DEFINED IN SECTION SIXTY-SIX-P OF THIS ARTI-
CLE.
§ 3. Section 70 of the public service law is amended by adding a new
subdivision 8 to read as follows:
8. NO PROVISION OF THIS SECTION SHALL APPLY TO ELECTRIC CORPORATIONS
WHERE ELECTRICITY IS GENERATED FROM RENEWABLE ENERGY SYSTEMS AS DEFINED
IN SECTION SIXTY-SIX-P OF THIS ARTICLE.
§ 4. This act shall take effect immediately.
PART B
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Section 1. Subdivision 5 of section 7 of part JJJ of chapter 58 of the
laws of 2020, amending the public service law and other laws relating to
accelerating the growth of renewable energy facilities to meet critical
state energy policy goals, is amended to read as follows:
5. The legislature finds and determines that timely development of the
bulk transmission investments identified in the state bulk transmission
investment plan is in the public interest of the people of the state of
New York. The legislature further finds and determines that the power
authority of the state of New York ("power authority") owns and operates
backbone electric transmission assets in New York, has rights-of-way
that can support in whole or in part bulk transmission investment
projects, and has the financial stability, access to capital, technical
expertise and experience to effectuate expeditious development of bulk
transmission investments needed to help the state meet the CLCPA
targets, and thus it is appropriate for the power authority as deemed
feasible and advisable by its trustees, by itself or in collaboration
with other parties as it determines to be appropriate, to develop those
bulk transmission investments found by the commission to be needed expe-
ditiously to achieve CLCPA targets ("priority transmission projects").
THE LEGISLATURE FURTHER FINDS AND DETERMINES, FOLLOWING THE ISSUANCE
OF THE CLIMATE SCOPING PLAN REQUIRED BY THE CLCPA, THAT IT IS IN THE
PUBLIC INTEREST OF THE PEOPLE OF THE STATE OF NEW YORK FOR THE POWER
AUTHORITY TO PROPOSE A MINIMUM OF TWO SUCH PRIORITY TRANSMISSION
PROJECTS, WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE
LAWS OF 2026 THAT AMENDED THIS SUBDIVISION, TO ADDRESS THE AREAS OF
HIGHEST NEED ON THE BULK TRANSMISSION SYSTEM AND FURTHER FACILITATE THE
DEVELOPMENT OF RENEWABLE ENERGY PROJECTS IN AREAS WHERE THERE ARE LIMI-
TATIONS ON THE CAPACITY TO INTERCONNECT NEW POWER GENERATING FACILITIES.
ONE OF THESE PROJECTS SHALL ADDRESS THE LOCATIONS OF HIGHEST NEEDS FOR
DEPLOYING ADDITIONAL RENEWABLE ENERGY PROJECTS IDENTIFIED BY THE NEW
YORK INDEPENDENT SYSTEM OPERATOR IN ITS MOST RECENT TWENTY-YEAR SYSTEM
OUTLOOK. THE OTHER PROJECT SHALL PROPOSE GRID INFRASTRUCTURE UPGRADES IN
LOCATIONS CURRENTLY UNDERSERVED BY THE GRID FOR INTERCONNECTING RENEWA-
BLE ENERGY PROJECTS, WHERE THERE IS OTHERWISE THE POTENTIAL TO DEVELOP
RENEWABLE ENERGY PROJECTS (TO ESTABLISH "RENEWABLE ENERGY ZONES") AS
DETERMINED BY THE POWER AUTHORITY. THE COMMISSION SHALL EXPEDITIOUSLY
REVIEW AND APPROVE OR REJECT THESE TWO PROPOSALS.
The power authority shall, through a public process, solicit interest
from potential co-participants in each project it has agreed to develop
and assess whether any joint development would provide for significant
additional benefits in achieving the CLCPA targets. The power authority
may thereafter determine to undertake the development of the project on
its own, or undertake the project jointly with one or more other parties
on such terms and conditions as the power authority finds to be appro-
priate and, notwithstanding any other law to the contrary, enter into
such agreements and take such other actions the power authority deter-
mines to be necessary in order to undertake and complete timely develop-
ment of the project. The intent of this act is for the power authority
to develop priority transmission projects authorized in this subdivi-
sion. For priority projects that the authority determines to undertake
and that are not substantially within the power authority's existing
rights of way, the authority shall, as deemed feasible and advisable by
its board of trustees, select private sector participants through a
competitive bidding process, provided however that priority transmission
projects is not intended to include generation lead lines, or repairs
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to, replacement of or upgrades to the power authority's own transmission
assets.
TO FOSTER THE CONTINUED DEVELOPMENT OF COMMUNITY SOLAR IN NEW YORK,
THE COMMISSION AND THE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHOULD
DETERMINE A THRESHOLD FOR NON-AFFORDABILITY FOR THE INTERCONNECTION
COSTS REQUIRED BY AN INVESTOR-OWNED UTILITY. WHEN THE REQUIRED LOCAL
SYSTEM UPGRADE COSTS FOR INTERCONNECTING A COMMUNITY SOLAR PROJECT OR A
GROUP OF COMMUNITY SOLAR PROJECTS ARE ABOVE THE NON-AFFORDABILITY THRES-
HOLD, THE POWER AUTHORITY SHALL INTERVENE AND IMPLEMENT A MECHANISM FOR
PROVIDING LOW INTEREST FINANCING FOR THE COSTS OF LOCAL SYSTEM UPGRADES
ABOVE THE THRESHOLD FOR THE DEVELOPER OR DEVELOPERS OF SUCH COMMUNITY
SOLAR PROJECT OR PROJECTS.
§ 2. This act shall take effect immediately; provided, however, the
amendments to section 7 of part JJJ of chapter 58 of the laws of 2020
made by section one of this act shall not affect the repeal of such
section and shall expire therewith.
PART C
Section 1. Subparagraphs (iii) and (vi) of paragraph (c) of subdivi-
sion 3 of section 3-c of the general municipal law, as added by section
1 of part A of chapter 97 of the laws of 2011, are amended to read as
follows:
(iii) Add any payments in lieu of taxes that were receivable in the
prior fiscal year, PROVIDED HOWEVER, IT SHALL NOT INCLUDE PAYMENTS IN
LIEU OF TAXES THAT WERE RECEIVABLE FROM RENEWABLE ENERGY GENERATION
PROJECTS AS DEFINED IN SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW.
(vi) Subtract any payments in lieu of taxes receivable in the coming
fiscal year, PROVIDED HOWEVER, IT SHALL NOT INCLUDE PAYMENTS IN LIEU OF
TAXES THAT ARE RECEIVABLE FROM RENEWABLE ENERGY GENERATION PROJECTS AS
DEFINED IN SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW.
§ 2. Subparagraphs 3 and 6 of paragraph a of subdivision 3 of section
2023-a of the education law, as added by section 2 of part A of chapter
97 of the laws of 2011, are amended to read as follows:
(3) Add any payments in lieu of taxes that were receivable in the
prior school year, PROVIDED HOWEVER, IT SHALL NOT INCLUDE PAYMENTS IN
LIEU OF TAXES THAT WERE RECEIVABLE FROM RENEWABLE ENERGY GENERATION
PROJECTS AS DEFINED IN SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW.
(6) Subtract any payments in lieu of taxes receivable in the coming
fiscal year, PROVIDED HOWEVER, IT SHALL NOT INCLUDE PAYMENTS IN LIEU OF
TAXES THAT ARE RECEIVABLE FROM RENEWABLE ENERGY GENERATION PROJECTS AS
DEFINED IN SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW.
§ 3. This act shall take effect immediately; provided, however, that
section one of this act shall first apply to the levy of taxes by local
governments for the fiscal year that begins in 2026; and provided,
further, that section two of this act shall first apply to school
district budgets and the budget adoption process for the 2026-2027
school year.
§ 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
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the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 4. This act shall take effect immediately; provided, however, that
the applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.