STATE OF NEW YORK ________________________________________________________________________ 6587 2019-2020 Regular Sessions IN SENATE June 17, 2019 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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-p to read as follows: 3 § 66-p. 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 at an annual average efficiency of no 11 less than fifty-five percent measured on a lower heating value basis and 12 reduces the local combustion related air pollutant oxides of nitrogen by 13 at least fifty percent in comparison to the most recent annual average 14 marginal emission factors, accounting for line losses, for the New York 15 independent system operator zone in which the project is located at the 16 time of interconnection; or 17 (2) generates electricity and thermal energy at an annual average 18 efficiency of no less than seventy percent measured on a lower heating 19 value basis and reduces the local combustion related air pollutant 20 oxides of nitrogen by at least fifty percent in comparison to the most 21 recent annual average marginal emission factors, accounting for line 22 losses, for the New York independent system operator zone in which the 23 project is located at the time of interconnection; and 24 (ii) is located at a community outage asset or within the boundaries 25 of an existing or planned microgrid. 26 (b) "Community outage asset" means a public or private entity that 27 provides critical services to the public during an outage of the elec- 28 tric distribution system. Community outage assets shall include, but are EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11992-01-9S. 6587 2 1 not limited to: telecommunications providers, large retail stores, 2 supermarkets, government agencies, data centers, transportation systems, 3 financial institutions, gas stations, educational institutions, health 4 care providers, large multi-family residential housing, community 5 centers, and other customers deemed by the commission to provide a crit- 6 ical service to the public that would promote or enhance health and 7 safety during an outage of the electric distribution system. 8 (c) "Extended outage" means an outage of the electric distribution 9 system that continues for a period of twenty-four hours or longer. 10 (d) "Uninterrupted" means that the output of the system is delivered 11 to the end-use customer throughout an extended electric distribution 12 system outage, with the exception of momentary interruptions associated 13 with transitions to and from grid parallel and grid islanded operations. 14 (e) "Microgrid" means a group of interconnected loads and distributed 15 energy resources within clearly defined electrical boundaries that acts 16 as a single controllable entity with respect to the grid. A microgrid 17 can connect and disconnect from the grid to enable it to operate in both 18 grid-connected or island-mode. 19 2. Within forty-five days of the effective date of this section, the 20 commission shall commence modification of the clean energy fund invest- 21 ment plan to allocate no less than five percent of annual clean energy 22 fund expenditures to encourage the development of clean and resilient 23 behind the meter distributed energy resource projects. The program 24 modifications shall require: 25 (a) administration by the New York state energy research and develop- 26 ment authority; 27 (b) planned annual expenditures that amount to no less than five 28 percent of overall annual clean energy fund expenditures commencing in 29 calendar year two thousand twenty and sustained each year through calen- 30 dar year two thousand twenty-four; 31 (c) incentive structures that maximize cost-effectiveness and practi- 32 cality through competitive procurements, standing-offers, or production 33 incentives; 34 (d) incentive structures that are designed to maximize the co-deploy- 35 ment of clean and resilient distributed energy resources with solar and 36 energy storage resources; 37 (e) annual reports on the achievements and effectiveness of the 38 program; and 39 (f) any other requirements deemed appropriate by the commission to 40 effectuate the purposes of this section. 41 § 2. Section 1020-ll of the public authorities law, as renumbered by 42 chapter 520 of the laws of 2018, is renumbered section 1020-zz. 43 § 3. Sections 1020-jj, 1020-kk and 1020-ll of the public authorities 44 law, sections 1020-jj and 1020-kk as renumbered by chapter 520 of the 45 laws of 2018 and section 1020-ll as renumbered by chapter 415 of the 46 laws of 2017, are renumbered sections 1020-ww, 1020-xx, and 1020-yy and 47 a new section 1020-jj is added to read as follows: 48 § 1020-jj. Clean and resilient energy initiative. 1. As used in this 49 section: 50 (a) "Clean and resilient behind the meter distributed energy resource 51 project" means an electricity generating system located behind a custom- 52 er meter that is configured to provide uninterrupted electric service to 53 a customer throughout an extended outage of the electric distribution 54 system, and which: 55 (i) (1) generates electricity at an annual average efficiency of no 56 less than fifty-five percent measured on a lower heating value basis andS. 6587 3 1 reduces the local combustion related air pollutant oxides of nitrogen by 2 at least fifty percent in comparison to the most recent annual average 3 marginal emission factors, accounting for line losses, for the New York 4 independent system operator zone in which the project is located at the 5 time of interconnection; or 6 (2) generates electricity and thermal energy at an annual average 7 efficiency of no less than seventy percent measured on a lower heating 8 value basis and reduces the local combustion related air pollutant 9 oxides of nitrogen by at least fifty percent in comparison to the most 10 recent annual average marginal emission factors, accounting for line 11 losses, for the New York independent system operator zone in which the 12 project is located at the time of interconnection; and 13 (ii) is located at a community outage asset or within the boundaries 14 of an existing or planned microgrid. 15 (b) "Community outage asset" means a public or private entity that 16 provides critical services to the public during an outage of the elec- 17 tric distribution system. Community outage assets shall include, but 18 are not limited to: telecommunications providers, large retail stores, 19 supermarkets, government agencies, data centers, transportation systems, 20 financial institutions, gas stations, educational institutions, health 21 care providers, large multi-family residential housing, community 22 centers, and other customers deemed by the authority to provide a crit- 23 ical service to the public that would promote or enhance health and 24 safety during an outage of the electric distribution system. 25 (c) "Extended outage" means an outage of the electric distribution 26 system that continues for a period of twenty-four hours or longer. 27 (d) "Uninterrupted" means that the output of the system is delivered 28 to the end-use customer throughout an electric distribution system 29 outage, with the exception of momentary interruptions associated with 30 transitions to and from grid parallel and grid islanded operations. 31 (e) "Microgrid" means a group of interconnected loads and distributed 32 energy resources within clearly defined electrical boundaries that acts 33 as a single controllable entity with respect to the grid. A microgrid 34 can connect and disconnect from the grid to enable it to operate in both 35 grid-connected or island-mode. 36 2. Within forty-five days of the effective date of this section, the 37 authority shall commence the consideration of modifications to its 38 existing programs that encourage the development of clean and resilient 39 behind the meter distributed energy resource projects. The authority 40 shall consult with the New York state public service commission and the 41 New York state energy research and development authority in the design 42 and implementation of such program. The projects shall require: 43 (a) planned annual expenditures that amount to no less than fifteen 44 million dollars commencing in calendar year two thousand twenty and 45 sustained each year through calendar year two thousand twenty-four; 46 (b) incentive structures that maximize cost-effectiveness and practi- 47 cality through competitive procurements, standing-offers, or production 48 incentives; 49 (c) annual reports on the achievements and effectiveness of the 50 program; and 51 (d) any other requirements deemed appropriate by the authority to 52 effectuate the purposes of this section. 53 § 4. This act shall take effect immediately.