STATE OF NEW YORK ________________________________________________________________________ 4559 2025-2026 Regular Sessions IN ASSEMBLY February 4, 2025 ___________ Introduced by M. of A. CUNNINGHAM -- read once and referred to the Committee on Energy AN ACT to amend the public service law, in relation to enacting the "build to need act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known as and may be cited as 2 the "build to need act". 3 § 2. Legislative findings and intent. The legislature hereby finds 4 that in order to achieve the targets set forth in the climate leadership 5 and community protection act, zero-emissions vehicle sales targets, and 6 regulations, including the advanced clean truck and advanced clean cars 7 II rules, zero-emissions school bus mandate, and other relevant goals, 8 the interests of the people of the state would be served by: 9 (a) expediting electric grid infrastructure upgrades to facilitate the 10 charging of light-duty, medium-duty, and heavy-duty electric vehicles; 11 (b) aligning a proactive planning process for beneficial electrifica- 12 tion with the current coordinated grid planning process for electric 13 corporations; 14 (c) ensuring the full range of feasible distributed energy resource 15 technologies, load management opportunities, and expected electrified 16 end uses are incorporated into electric utility investment plans; 17 (d) lowering costs to customers through efficient planning, including 18 consideration and deployment of non-wires solutions that reduce or elim- 19 inate the need for distribution system upgrades; 20 (e) ensuring meaningful benefits to communities most affected by 21 large-scale proactive utility projects developed under this framework; 22 and 23 (f) enhancing speed, flexibility, and ease of customer intercon- 24 nections (including both loads and distributed generation). EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00233-01-5
A. 4559 2 1 § 3. The public service law is amended by adding a new section 77-a to 2 read as follows: 3 § 77-a. Build to need act. 1. Within sixty days of the effective date 4 of this section, the commission shall commence a proceeding to implement 5 a grid planning process that shall direct electric corporations to: 6 (a) align planning under this section with existing planning proc- 7 esses, including the coordinated grid planning process implemented 8 pursuant to the climate leadership and community protection act, to the 9 extent feasible; 10 (b) provide annually to the New York independent system operator 11 updated load projections consistent with the state's electrification and 12 climate related policy mandates; 13 (c) use a planning horizon of at least ten years for transmission 14 through substation-level investments and a planning horizon of at least 15 five years for other distribution investments; 16 (d) proactively gather and incorporate data relevant to future elec- 17 tric loads from sources including but not limited to customers operating 18 fleets, state and municipal departments of transportation or their 19 equivalents, other entities that may reasonably be expected to have 20 relevant information concerning location, type, magnitude, or timing of 21 major future loads, available vehicle telematics data, and other sources 22 of information as directed by the commission; 23 (e) consider customers' activities that may reduce, defer, or other- 24 wise affect the need or extent of grid upgrades, such as customers' 25 reasonably foreseeable load management activities, including but not 26 limited to implementation of automated load management technologies, and 27 deployments of distributed energy resources and ability to enter into 28 flexible interconnections; 29 (f) identify system needs where the electric corporation, planning in 30 accordance with the state's electrification and climate related policy 31 mandates, finds (i) a reasonable expectation of new load in a specific 32 area based on inputs including fleet electrification commitments, prox- 33 imity to transportation corridors, ports, airports, other existing 34 transportation or freight hubs and other relevant data sources that 35 would substantiate the projections of new load and the associated time- 36 line; and (ii) a reasonable likelihood of grid constraints that shall 37 impair the electric corporations ability to serve the load absent a 38 solution to address the system need in a timely manner; and 39 (g) where an electric corporation identifies a system need, such 40 corporation shall develop solutions that proactively address such system 41 need, and consider advanced technologies where appropriate and feasible. 42 2. (a) The commission shall develop a test for defining larger tier 43 one solutions and smaller tier two solutions. Such test shall: 44 (i) be applied uniformly to all electric corporations, except where 45 the commission determines such different criteria should apply to a 46 given electric corporation because unique circumstances or hardships, or 47 impracticability of applying the uniform test to such electric corpo- 48 ration exist; 49 (ii) prohibit electric corporations from segmenting solutions to avoid 50 a tier one designation; and 51 (iii) specify criteria such as, but not limited to, solution cost as a 52 percentage of the electric corporation's rate base, solution nominal 53 voltage, solution wattage and solution type. 54 (b) The commission may update such test as appropriate to ensure the 55 timely achievement of state electrification mandates and the efficient 56 consideration of solutions development pursuant to this section.
A. 4559 3 1 (c) The commission shall establish separate requirements for tier one 2 projects for which the electric corporation seeks approval under subdi- 3 vision four of this section and tier two projects. 4 3. The commission shall develop a framework governing the use of 5 advanced technologies as part of the solutions for which the electric 6 corporation seeks approval under subdivision four of this section. Such 7 framework shall: (a) define advanced technologies to include energy 8 storage, demand response, automated load management, other distributed 9 energy resources, and any other categories as determined by the commis- 10 sion. Such framework shall direct electric corporations to consider 11 where appropriate and feasible at least one alternative technology to 12 address the identified system need fully or partially; and 13 (b) such electric corporation shall demonstrate why advanced technolo- 14 gies were or were not included as part of the project. The commission 15 may establish mandatory targets for deployment of advanced technologies, 16 provide for earnings adjustment mechanisms associated with utilities' 17 deployment of advanced technologies, and include other metrics and guid- 18 ance as appropriate. 19 4. In approving tier one projects for which the electric corporation 20 seeks approval under this subdivision, the commission shall require: 21 (a) electric corporations file with the commission a petition for 22 approval. Such petition shall include a description of project need 23 including data sources to substantiate need, explanation of alternatives 24 considered, description of its community benefit plan as required in 25 subdivision six of this section, projected costs and benefits, a 26 proposed cost recovery method, and any other requirements as established 27 by the commission. Further, such petition shall include an explanation 28 of an electric corporation's reasonable efforts to obtain state or 29 federal funding sources to offset electric corporation customer costs of 30 the project. If the electric corporation does not seek state or federal 31 funding sources, it shall explain why it did not seek such funding. 32 (b) render a decision on such petition within one hundred twenty days, 33 or within the one hundred twenty day period, extend such time to render 34 a decision by sixty days. Failure to render a decision within such time- 35 line prescribed, shall deem such petition approved by operation of law; 36 and 37 (c) to the extent an electric corporation's infrastructure deployment 38 or other costs attributable to this section are not included in its 39 current rate plan as of the effective date of this section, such elec- 40 tric corporation may recover the incremental revenue requirement associ- 41 ated with such costs through a surcharge mechanism until its base rates 42 are reset. A surcharge mechanism may only be used to the extent neces- 43 sary between the effective date of this section and the conclusion of 44 the electric corporation's next rate case. 45 5. (a) All tier one projects for which the electric corporation seeks 46 approval under subdivision four of this section shall include a communi- 47 ty benefit plan. The commission shall develop a community benefit plan 48 framework which shall: 49 (i) define the term "affected communities," which shall include commu- 50 nities in the vicinity of a tier one project as well as other criteria 51 defined by the commission; 52 (ii) consider separate requirements applicable to disadvantaged commu- 53 nities within affected communities; 54 (iii) specify criteria that a reasonable percentage of solution bene- 55 fits are demonstrated to be delivered to affected communities;
A. 4559 4 1 (iv) consider achievable, measurable workforce development programs 2 and goals designed to expand high-quality job opportunities in affected 3 communities; 4 (v) require such electric corporation provide benefits to affected 5 communities; and 6 (vi) require a description of such electric corporation's past and 7 planned efforts concerning community engagement and its history of 8 incorporating an affected communities feedback into its solution or its 9 willingness to incorporate an affected communities feedback. 10 (b) Reasonable and prudently incurred costs in the implementation of 11 the community benefit plan shall be recoverable by such electric corpo- 12 ration as part of solution costs. 13 6. The commission is authorized to promulgate rules and regulations 14 necessary to determine record keeping requirements for tier two 15 projects, including: 16 (a) records demonstrating project need; 17 (b) analysis of the chosen solution by the electric corporation; 18 (c) alternatives considered; 19 (d) project costs and benefits; and 20 (e) any other requirements determined by the commission. 21 7. Within two hundred eighty days of the effective date of this 22 section, electric corporations shall offer to customers, and update 23 tariffs as necessary to enable both hybrid and flexible intercon- 24 nections. For the purposes of this subdivision, hybrid interconnections 25 include an interconnection, through a single application, of hybrid 26 facilities. Such hybrid facilities shall include those composed of more 27 than one device of different technology types for such production, stor- 28 age, and consumption of electricity that are located on the same site 29 and have a single point of interconnection. Further, for the purposes of 30 this subdivision, flexible interconnections include electric corporation 31 requirements to enable expeditiously energizing new load or intercon- 32 necting a distributed energy resource to an electric corporation's 33 distribution system, including an agreement, supported by the use of 34 software or hardware solutions such as automated load management, for 35 curtailing the import and export of electricity from and to the distrib- 36 ution system. 37 8. Within one year of the effective date of this section, the commis- 38 sion shall establish average and maximum target time periods for load 39 energizations and distributed generation interconnections. The commis- 40 sion may establish targets that vary depending on the size and complexi- 41 ty of such work, as well as factors beyond such electric corporation's 42 control. Further, the commission shall establish a procedure for 43 customers to report energization or interconnection delays to the 44 commission. The commission shall establish an enforcement mechanism to 45 ensure timely interconnection and energization, including but not limit- 46 ed to, earnings adjustment mechanisms with incentives and penalties. 47 9. The commission, in consultation with the New York state energy 48 research and development authority, the department of environmental 49 conservation, the department of transportation, the power authority of 50 New York state, the Long Island power authority, and other agencies 51 charged with administering electric vehicle programs, incentives, or 52 procurements may include provisions for the use of automated load 53 management in such programs, incentives, and procurements when they are 54 determined to be cost effective. For purposes of this subdivision auto- 55 mated load management shall include any required hardware and software 56 and also installation costs.
A. 4559 5 1 10. (a) Within one year of the effective date of this section, the 2 commission shall adopt reporting requirements under this section for a 3 time period determined by the commission but no less than five years 4 from the effective date of this section. The reporting requirements 5 shall include at a minimum: 6 (i) a summary of tier one and tier two projects deployed, including 7 but not limited to a general categorization of projects, project costs, 8 and for projects that entered service between the effective date of this 9 section and the effective date of the electric corporation's subsequent 10 rate plan, an identification of those projects not included in the elec- 11 tric corporation's prior rate plan; 12 (ii) a comparison of projected and actual loads, including projected 13 loads attributable to electrification and a summary of projected elec- 14 tric corporation system upgrades and costs to serve such loads; 15 (iii) actual and estimated, as practicable, incremental costs and 16 revenues attributable to tier one and two projects; 17 (iv) a summary of community benefit plan implementations and results, 18 as applicable; and 19 (v) energization and interconnection timelines. 20 (b) To the extent an electric corporation's performance fails to meet 21 corresponding target time periods, such report shall explain such fail- 22 ures and shall provide a strategy for meeting the targets in the future. 23 The commission shall monitor each electric corporation's activities 24 related to this section and take appropriate action as needed to address 25 any deficiencies. 26 § 4. This act shall take effect immediately.