STATE OF NEW YORK ________________________________________________________________________ 2478 2025-2026 Regular Sessions IN SENATE January 21, 2025 ___________ 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 public authorities law, in relation to establishing a clean and resilient energy program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public service law is amended by adding a new section 2 66-x to read as follows: 3 § 66-x. Clean and resilient energy program. 1. As used in this 4 section: 5 (a) "Clean and resilient behind the meter distributed energy resource 6 project" means an electricity generating system located behind a custom- 7 er meter in the state that is configured to provide uninterrupted elec- 8 tric service to a customer throughout an extended outage of the elec- 9 tricity distribution system, and which: 10 (i) (1) generates electricity without producing greenhouse gases or 11 local combustion related pollutants; or 12 (2) generates electricity or electricity and thermal energy via a 13 non-combustion process at an annual average efficiency of no less than 14 fifty-five percent measured on a lower heating value basis; or 15 (3) generates electricity and thermal energy at an annual average 16 efficiency of no less than seventy percent measured on a lower heating 17 value basis and reduces the local combustion related air pollutant 18 oxides of nitrogen by at least fifty percent in comparison to the most 19 recent annual average marginal emission factors, accounting for line 20 losses, for the New York independent system operator zone in which the 21 project is located at the time of interconnection; and 22 (ii) is located at a community continuity asset or within the bounda- 23 ries of an existing or planned microgrid. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06156-01-5
S. 2478 2 1 (b) "Community continuity asset" means a public or private entity that 2 provides critical services to the public during an outage of the elec- 3 tric distribution system. Community continuity assets shall include, but 4 are not limited to: telecommunications providers, large retail stores, 5 supermarkets, government agencies, data centers, transportation systems, 6 financial institutions, gas stations, educational institutions, health 7 care providers, large multi-family residential housing, community 8 centers, and other customers deemed by the commission to provide a crit- 9 ical service to the public that would promote or enhance health and 10 safety during an outage of the electric distribution system. 11 (c) "Extended outage" means an outage of the electric distribution 12 system that continues for a period of twenty-four hours or longer. 13 (d) "Uninterrupted" means that the output of the system is delivered 14 to the end-use customer throughout an extended electric distribution 15 system outage, with the exception of momentary interruptions associated 16 with transitions to and from grid parallel and grid islanded operations. 17 (e) "Microgrid" means a load or group of interconnected loads and 18 distributed energy resources within clearly defined electrical bounda- 19 ries that acts as a single controllable entity with respect to the grid. 20 A microgrid can connect and disconnect from the grid to enable it to 21 operate in both grid-connected or island-mode. 22 2. Within one hundred eighty days of the effective date of this 23 section, the commission shall modify the clean energy fund investment 24 plan to allocate no less than five percent of annual clean energy fund 25 expenditures to encourage the development of clean and resilient behind 26 the meter distributed energy resource projects. The program modifica- 27 tions shall require: 28 (a) administration by the New York state energy research and develop- 29 ment authority; 30 (b) planned annual expenditures that amount to no less than five 31 percent of overall annual clean energy fund expenditures commencing in 32 calendar year two thousand twenty-six and sustained each year through 33 calendar year two thousand thirty; 34 (c) incentive structures that maximize cost-effectiveness and practi- 35 cality through competitive procurements, standing-offers, or production 36 incentives; 37 (d) annual reports on the achievements and effectiveness of the 38 program; and 39 (e) any other requirements deemed appropriate by the commission to 40 effectuate the purposes of this section. 41 § 2. The public authorities law is amended by adding a new section 42 1020-nn to read as follows: 43 § 1020-nn. Clean and resilient energy initiative. 1. As used in this 44 section: 45 (a) "Clean and resilient behind the meter distributed energy resource 46 project" means an electricity generating system located behind a custom- 47 er meter that is configured to provide uninterrupted electric service to 48 a customer throughout an extended outage of the electric distribution 49 system, and which: 50 (i) (1) generates electricity without producing greenhouse gases or 51 local combustion related pollutants; or 52 (2) generates electricity or electricity and thermal energy via a 53 non-combustion process at an annual average efficiency of no less than 54 fifty-five percent measured on a lower heating value basis; or 55 (3) generates electricity and thermal energy at an annual average 56 efficiency of no less than seventy percent measured on a lower heating
S. 2478 3 1 value basis and reduces the local combustion related air pollutant 2 oxides of nitrogen by at least fifty percent in comparison to the most 3 recent annual average marginal emission factors, accounting for line 4 losses, for the New York independent system operator zone in which the 5 project is located at the time of interconnection; and 6 (ii) is located at a community continuity asset or within the bounda- 7 ries of an existing or planned microgrid. 8 (b) "Community continuity asset" means a public or private entity that 9 provides critical services to the public during an outage of the elec- 10 tric distribution system. Community continuity assets shall include, 11 but are not limited to: telecommunications providers, large retail 12 stores, supermarkets, government agencies, data centers, transportation 13 systems, financial institutions, gas stations, educational institutions, 14 health care providers, large multi-family residential housing, community 15 centers, and other customers deemed by the authority to provide a crit- 16 ical service to the public that would promote or enhance health and 17 safety during an outage of the electric distribution system. 18 (c) "Extended outage" means an outage of the electric distribution 19 system that continues for a period of twenty-four hours or longer. 20 (d) "Uninterrupted" means that the output of the system is delivered 21 to the end-use customer throughout an electric distribution system 22 outage, with the exception of momentary interruptions associated with 23 transitions to and from grid parallel and grid islanded operations. 24 (e) "Microgrid" means a load or group of interconnected loads and 25 distributed energy resources within clearly defined electrical bounda- 26 ries that acts as a single controllable entity with respect to the grid. 27 A microgrid can connect and disconnect from the grid to enable it to 28 operate in both grid-connected or island-mode. 29 2. Within one hundred eighty days of the effective date of this 30 section, the authority shall modify its existing programs that encourage 31 the development of clean and resilient behind the meter distributed 32 energy resource projects. The authority shall consult with the New York 33 state public service commission and the New York state energy research 34 and development authority in the design and implementation of such 35 program. The projects shall require: 36 (a) planned annual expenditures that amount to no less than fifteen 37 million dollars commencing in calendar year two thousand twenty-six and 38 sustained each year through calendar year two thousand thirty; 39 (b) incentive structures that maximize cost-effectiveness and practi- 40 cality through competitive procurements, standing-offers, or production 41 incentives; 42 (c) annual reports on the achievements and effectiveness of the 43 program; and 44 (d) any other requirements deemed appropriate by the authority to 45 effectuate the purposes of this section. 46 § 3. This act shall take effect immediately.