•  Summary 
  •  
  •  Actions 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 

A01932 Summary:

BILL NOA01932
 
SAME ASNo same as
 
SPONSORCahill
 
COSPNSR
 
MLTSPNSR
 
Amd S6-102, Energy L; add S66-n, amd S66, Pub Serv L; amd S1005, ren SS1020-ii, 1020-jj & 1020-kk to be SS1020-jj, 1020-kk & 1020-ll, add S1020-ii, Pub Auth L; ren Art 7 SS70 - 72 to be Art 8 SS80 - 82, add Art 7 S70, Rur Elec Coop L
 
Enacts the "New York grid modernization act" to address the aging infrastructure; establishes the grid modernization program; defines terms; creates the smart grid advisory council; makes related changes.
Go to top

A01932 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1932
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Energy
 
        AN  ACT  to  amend  the  energy  law, the public service law, the public
          authorities law and the rural electric cooperative law, in relation to
          establishing the "New York grid modernization 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 and may be cited as
     2  the "New York grid modernization act".
     3    § 2. Legislative findings and purpose. The legislature finds that  the
     4  widely acknowledged bottlenecks in the state's aging infrastructure have
     5  resulted  in high delivery costs for the downstate region and struggling
     6  power plants upstate. This outdated transmission system  is  leading  to
     7  unnecessary  congestion costs. Additionally, increasingly frequent trau-
     8  matic weather events have highlighted the unreliability and  uncertainty
     9  of  our current system. Investments to modernize the state's infrastruc-
    10  ture are needed to reach our energy goals as society's growing  reliance

    11  on  electricity  along  with  advancements in smart grid technology have
    12  made the old model obsolete.
    13    The legislature further finds and recognizes  that  as  the  available
    14  resources  and technologies evolve, the design of the smart grid must be
    15  capable of adapting to shifting conditions and priorities to meet utili-
    16  ty and customer needs. In the short term, utilities should pursue estab-
    17  lished and reliable technologies that can provide a  relatively  certain
    18  return on investment.
    19    In  the  longer  term,  federal investment has provided for smart grid
    20  projects nationwide, which will generate a significant base of knowledge
    21  that will help identify technologies that are most effective.
    22    The legislature also finds that half of the current workforce involved
    23  in the production and delivery of our electricity will be retired or  no

    24  longer in that workforce by 2015. Workforce recruitment campaigns devel-
    25  oped  by utilities, in conjunction with training facilities that provide
    26  certification for skilled positions and offer tuition  assistance,  will
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05838-01-3

        A. 1932                             2
 
     1  attract  knowledgeable workers who will be instrumental in the implemen-
     2  tation of a modernized electric grid.
     3    § 3. Section 6-102 of the energy law is amended by adding a new subdi-
     4  vision 7 to read as follows:
     5    7.  The board shall take an active role in advising the public service

     6  commission in the development of, and any subsequent revisions  to,  the
     7  grid modernization order required pursuant to section 66-n of the public
     8  service law.
     9    § 4. The public service law is amended by adding a new section 66-n to
    10  read as follows:
    11    §  66-n. Establishment of grid modernization program.  1. Definitions.
    12  As used in this section:   (a) "Electric transmission  and  distribution
    13  company" or "transmission and distribution company" shall be known as an
    14  investor-owned  utility  having annual revenues in excess of two hundred
    15  million dollars that transmits and distributes electricity  within  this
    16  state  or  a municipality that distributes electricity and receives less

    17  than its entire electric supply from the power authority of the state of
    18  New York and is subject to  the  jurisdiction  of  the  commission  with
    19  respect to the regulation of the price of electricity.
    20    (b) "Full load municipal electric customer", shall be known as a muni-
    21  cipality  that  distributes electricity and receives its entire electric
    22  supply from the power authority of the state of New York;
    23    (c) "Cooperative" shall have the same meaning as such term is  defined
    24  in paragraph (a) of section two of the rural electric cooperative law.
    25    (d)  "New  York transmission and distribution coordinating council" or
    26  "transmission council" shall be known as a  consortium  which  shall  be

    27  formed  pursuant  to  this  act  for the purpose of identifying areas of
    28  electrical congestion within New York's high voltage transmission system
    29  comprising:
    30    (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson
    31  Gas and Electric, Niagara Mohawk d/b/a National  Grid,  New  York  State
    32  Electric and Gas and Rochester Gas and Electric;
    33    (ii) Public power authorities; and
    34    (iii) the New York state energy research and development authority;
    35    (e)  "New  York's  high  voltage transmission system" or "high voltage
    36  transmission system" shall mean electric transmission lines as such term
    37  is referred to in paragraph  (a)  of  subdivision  two  of  section  one

    38  hundred  twenty of the public service law, provided that electric trans-
    39  mission lines shall also include  electric  transmission  lines  located
    40  wholly  underground in a city in excess of one hundred twenty-five thou-
    41  sand persons or a primary transmission  line  approved  by  the  federal
    42  energy regulatory commission in connection with a hydro-electric facili-
    43  ty and other equipment necessary for electric transmission.
    44    (f)  "Public  power  authorities" shall be known as power authority of
    45  the state of New York and the Long Island power authority.
    46    (g) "Smart grid" shall be  known  as  investments  and  policies  that
    47  together promote one or more of the following goals:
    48    (i)  Increased  use  of digital information and controls technology to

    49  improve reliability, security and efficiency of the electric grid;
    50    (ii) Dynamic optimization of grid operations and resources, with  full
    51  cyber security;
    52    (iii)  Deployment  and integration of distributed resources and gener-
    53  ation, including renewable resources;
    54    (iv) Development and  incorporation  of  demand-response,  demand-side
    55  resources, and energy efficiency resources;

        A. 1932                             3
 
     1    (v) Deployment of "smart" technologies, real-time, automated, interac-
     2  tive technologies that optimize the physical operation of appliances and
     3  consumer devices for metering, communications concerning grid operations
     4  and status, and distribution automation.

     5    (vi) Integration of "smart" appliances and consumer devices;
     6    (vii)  Deployment  and integration of advanced electricity storage and
     7  peak-shaving technologies, including plug-in electric and  hybrid  elec-
     8  tric  vehicles,  thermal-storage  air  conditioning and renewable energy
     9  generation;
    10    (viii) Provision  to  consumers  of  timely  information  and  control
    11  options;
    12    (ix) Development of open access standards for communication and inter-
    13  operability  of appliances and equipment connected to the electric grid,
    14  including the infrastructure serving the grid;
    15    (x) Identification and lowering of unreasonable or unnecessary  barri-
    16  ers  to  adoption  of  Smart Grid technologies, practices, services, and

    17  business models that support  energy  efficiency,  demand-response,  and
    18  distributed generation; and
    19    (xi) Advanced metering infrastructure.
    20    (h)  "Advanced metering infrastructure" or "AMI" shall be known as the
    21  communications hardware and software and associated system software that
    22  is designed to create a network between  advanced  meters  and  electric
    23  transmission  and  distribution company systems and allow for collection
    24  and distribution  of  information  to  customers  and  other  authorized
    25  parties  in  addition  to  providing  information  to  transmission  and
    26  distribution companies.
    27    (i) "Smart grid advisory council"  means  the  group  of  stakeholders

    28  formed  pursuant to paragraph (a) of subdivision two of this section for
    29  purposes of advising and working with the public service  commission  to
    30  determine  the  feasibility  of  the development and implementation of a
    31  Smart Grid Advanced Metering Infrastructure Deployment Plan.
    32    (j)  "Workforce  development"  shall  mean  training  initiatives  and
    33  curriculum  sponsored  by  transmission  and  distribution companies and
    34  public power authorities that will ensure sufficient staffing to  imple-
    35  ment   the  grid  modernization  programs.  Such  workforce  development
    36  programs shall be undertaken through partnerships with  state  universi-
    37  ties,  community  colleges,  boards  of  cooperative education and other

    38  entities accredited by the American National Standards Institute for the
    39  purposes of implementing grid modernization programs.
    40    2. Smart grid advisory council. (a) Within one hundred eighty days  of
    41  the  effective  date  of  this  section  the smart grid advisory council
    42  ("council") shall be established. The council shall be composed of seven
    43  voting members, with each member possessing either  technical,  business
    44  or  consumer  expertise  in smart grid technology. Five members shall be
    45  appointed by the governor, one member shall be appointed by  the  tempo-
    46  rary  president  of  the senate and one member shall be appointed by the
    47  speaker of the assembly. The governor shall appoint the  chairperson  of

    48  the New York state energy research and development authority to serve as
    49  chairperson  of  the  council. Members of the council, except those that
    50  are employees or officers of the state,  its  authorities  or  agencies,
    51  shall  not  receive a salary or other compensation, but shall be allowed
    52  the necessary and actual expenses incurred in the performance of  duties
    53  under  this section. Any reasonable costs associated with functioning of
    54  the council shall be borne by the New York  state  energy  research  and
    55  development authority.

        A. 1932                             4
 
     1    (b)  Within  six months of the establishment of the council, the smart
     2  grid advisory council shall submit a report to  the  commission  on  the

     3  feasibility  of  establishing a statewide smart grid system. Such report
     4  shall analyze the potential for the statewide  development  of  a  smart
     5  grid system that would:
     6    (i) utilize digital information technology and communications networks
     7  to  gather and submit information on electricity usage, real time whole-
     8  sale and retail electric prices, voltage level, and disruptions on local
     9  electric distribution networks;
    10    (ii) allow for the integration of AMI to measure and transmit data  on
    11  consumer electric usage;
    12    (iii)  incorporate  consumer  products, including household appliances
    13  and electric plug-in vehicles;
    14    (iv) promote the use of distributed  generation,  including  renewable
    15  technologies; and

    16    (v) protect the privacy of consumers and consumer usage data.
    17    3. New York transmission and distribution coordinating council.  With-
    18  in one hundred eighty days of the effective date of this section the New
    19  York   transmission  and  distribution  coordinating  council  shall  be
    20  created. Any reasonable costs associated with  the  functioning  of  the
    21  committee  shall  be  borne  by  the  New York state energy research and
    22  development authority. Within one hundred eighty days of the creation of
    23  such council, the council shall submit to the commission a report  iden-
    24  tifying  areas  of  concern within the state's high voltage transmission
    25  system. Such report shall:
    26    (a) locate and identify and propose upgrades or  replacement  of  high

    27  voltage  transmission lines and/or components of the high voltage trans-
    28  mission system that are in service as of  the  effective  date  of  this
    29  section;
    30    (b) Identify equipment upgrades or installations that are necessary to
    31  relieve  areas  of  congestion  within  the  high  voltage  transmission
    32  network; and
    33    (c) Provide a cost analysis of proposed high voltage transmission line
    34  component upgrades or replacement over a  ten-year  period,  which  such
    35  cost analysis shall include:
    36    (i)  a proposal for the cost sharing of proposed transmission upgrades
    37  or replacement projects that directly or indirectly benefit customers in
    38  the respective service territories of two or more electric  transmission

    39  and distribution companies;
    40    (ii)  strategies for attracting private investment for proposed trans-
    41  mission upgrades or replacement projects identified in the report;
    42    (iii) an analysis of the financial and other impacts of proposed tran-
    43  smission upgrades or replacement projects on electric ratepayers; and
    44    (iv) any other information, studies, maps or analyses the transmission
    45  council deems necessary.
    46    4. Commission review of smart grid advisory council  report.  (a)  The
    47  commission, thirty days upon receiving the "smart grid advisory council"
    48  report  pursuant to subdivision two of this section, shall determine the
    49  reasonableness, efficacy and expense of the development of  a  ten  year

    50  statewide  smart grid deployment by transmission and distribution compa-
    51  nies and public power authorities.   In  making  its  determination  the
    52  commission  shall consider whether smart grid deployment would serve the
    53  public interest, with consideration of the  impact  on  the  safety  and
    54  reliability of local distribution networks, the retail cost of electric-
    55  ity to residential, commercial and industrial customers and the security
    56  and privacy of customer energy usage information and data.

        A. 1932                             5
 
     1    (b)  If the commission determines that smart grid deployment meets the
     2  public interest it shall require, in its grid modernization order,  made

     3  pursuant  to  subdivision  five  of  this  section that transmission and
     4  distribution companies invest in smart grid deployment.
     5    (c)  If the commission determines that smart grid deployment would not
     6  meet the public interest for reasons specified in paragraph (a) of  this
     7  subdivision  it  shall  provide  a  statement  in its grid modernization
     8  order, made pursuant to subdivision five of this section  detailing  the
     9  reasons that smart grid deployment would not serve the public interest.
    10    5.  Commission  grid  modernization  order.  No  later  than two years
    11  following the effective date of  this  section,  the  commission,  after
    12  consultation  with the state energy planning board, established pursuant

    13  to article six of the energy law, the New York transmission and distrib-
    14  ution coordinating council and the smart grid  advisory  council,  shall
    15  approve  an  order approving a ten year grid modernization program to be
    16  undertaken by transmission and distribution companies.
    17    (a) The order establishing the  program  shall  include  high  voltage
    18  transmission system improvements, which shall include, where applicable,
    19  but not be limited to, the replacement or upgrade of transmission facil-
    20  ities  or  transmission  lines,  which, due to their years in service or
    21  limited transfer capacity have created or have the potential  to  create
    22  within  ten  years  of  the effective date of this section a significant

    23  electric system reliability problem, or as determined by the  commission
    24  have  contributed  to  a  significant  increase in the wholesale cost of
    25  electricity. The commission shall not approve any proposal to invest  in
    26  new  transmission  facilities  that  would  require  the  acquisition of
    27  substantial new rights of way.  Any  high  voltage  transmission  system
    28  improvements ordered by the commission shall:
    29    (i)  encourage  the  interconnection of existing and proposed electric
    30  generating facilities, with an emphasis on  renewable  energy  technolo-
    31  gies, including but not limited to solar and wind;
    32    (ii)  allow  for the economic and cost-effective transmission of elec-
    33  tricity  from  existing  and  proposed  electric  generating  facilities

    34  located in New York to energy intensive regions located within the elec-
    35  tric  transmission  system  operated by the bulk system operator serving
    36  the state's electric system;
    37    (iii) be sited only on existing transmission rights of  way,  provided
    38  further that the acquisition of additional lands parallel to such rights
    39  of way be minimal;
    40    (iv)  be  designed to reduce susceptibility to power outages caused by
    41  events such as storm-related damage including, but not limited to,  high
    42  winds, thunderstorms and ice storms; and
    43    (v)  meet  any other standards for economy and reliability established
    44  by the commission in developing its grid modernization program.

    45    (b) The order establishing the program shall also include distribution
    46  system improvements such as but not be limited to  underground  residen-
    47  tial distribution cable injection and replacement, mainline cable system
    48  refurbishment  and  replacement, wood utility pole inspection, treatment
    49  and replacement, the replacement or relocation or underground conversion
    50  of certain circuits or other similar measures to minimize outages caused
    51  by damage to infrastructure and equipment that have been  identified  as
    52  susceptible  to damage from events such as storm-related damage, includ-
    53  ing, but not limited to,  high  winds,  thunderstorms  and  ice  storms.
    54  Distribution system improvements made pursuant to this order shall:

    55    (i)  be  designed  to  reduce the susceptibility to electrical outages
    56  including those caused by events such as storms;

        A. 1932                             6
 
     1    (ii) where possible and practicable, be  designed  and  located  in  a
     2  manner that will reduce the reliance on utility right of way maintenance
     3  practices including tree and brush cutting; and
     4    (iii) where possible and practicable allow for and encourage the inte-
     5  gration  of  AMI  if the commission finds that it would be in the public
     6  interest.
     7    (c) The order establishing the program shall also include energy  low-
     8  income  assistance  and  energy usage education, which shall include but
     9  not be limited to:

    10    (i) residential and non-residential and small business  utility  rate-
    11  payer hardship programs;
    12    (ii)  grants  and  other  payment  concessions  to  disabled veterans,
    13  defined as a veteran who has received a  compensation  rating  from  the
    14  United  States  department of veterans affairs or from the United States
    15  department of defense because of a service-connected disability incurred
    16  in the line of duty in the active military, naval or  air  services  who
    17  demonstrate  a  hardship,  a  disabled  veteran  who became severely and
    18  permanently disabled as a  result  of  injury  or  illness  suffered  or
    19  incurred  during  military  training in preparation for duty in a combat
    20  theater or combat zone of operations  who  demonstrate  a  hardship  and

    21  members  of  the  armed  services  or  a member of the national guard or
    22  reserve as defined in 10 U.S.C. Section 101 (d) (1), or a member of  the
    23  state organized militia, and is called or ordered to active duty for the
    24  state,  as defined in subdivision one of section six of the military law
    25  and who demonstrates a hardship; and
    26    (iii) budget assistance programs that provide tools and  education  to
    27  the  general  public with an emphasis on low-income customers and senior
    28  citizens to assist them  with  obtaining  information  regarding  energy
    29  usage and effective means of managing energy costs.
    30    (d)  Energy low-income assistance and education programs made pursuant
    31  to this section shall be designed to reduce or prevent disconnection  of

    32  utility  service to residential and non-residential customers due to any
    33  potential increase in monthly utility bills.
    34    (e) If the commission determines that it is in  the  public  interest,
    35  the order establishing the program shall also include smart grid deploy-
    36  ment.  Smart  grid infrastructure deployment made pursuant to this order
    37  shall:
    38    (i) be designed to allow for electric customers  to  obtain  real-time
    39  retail  electric  pricing  data  and  consumer  demand data within their
    40  respective company's service territory through the installation of  AMI,
    41  which  may  include  smart  meters  or interactive consumer software and
    42  communications applications;

    43    (ii) protect customer privacy, including personal  financial  informa-
    44  tion and data relating to personal electrical usage;
    45    (iii)  allow any customer of an electric transmission and distribution
    46  company to, at no penalty, fee or service charge, to decline the permis-
    47  sion of his or her respective company to replace a current meter with an
    48  AMI device or install any AMI device at his  or  her  property  for  the
    49  measurement of and storage of electric usage data;
    50    (iv) accommodate and encourage the use of smart appliances and plug-in
    51  or hybrid electric vehicles; and
    52    (v)  include  initiatives  to educate consumers on the proper usage of
    53  technologies with the aim of promoting  system-wide  reduction  of  peak
    54  energy usage.

    55    (f) The order establishing the program shall also require electric and
    56  transmission  distribution  companies to administer a workforce develop-

        A. 1932                             7
 
     1  ment program designed to ensure that each such company will recruit  and
     2  maintain  adequate  certified  full-time  and  part-time  employees  and
     3  contracted workers to carry out the requirements pursuant to  paragraphs
     4  (a),  (b),  and  (c) of this section. Workforce development program made
     5  pursuant to this subdivision shall:
     6    (i) Require each transmission and  distribution  company  with  annual
     7  gross  revenues in excess of two hundred million dollars to maintain, at
     8  a minimum, one in-state training facility located within its  respective

     9  service  territory for the purposes of providing full-time and part-time
    10  employees and contracted workers any necessary instruction and  hands-on
    11  training  required  for  smart  grid  deployment  made  pursuant to this
    12  section;
    13    (ii) Require each transmission and distribution company  to  create  a
    14  tuition  and  financial  assistance  fund with any monies made available
    15  pursuant to paragraph (d) of subdivision six of this  section  to  cover
    16  the  costs  of  training  prospective  full-time and part-time employees
    17  through state universities, community colleges,  boards  of  cooperative
    18  education  and other entities accredited by the American National Stand-
    19  ards Institute.

    20    (iii) Require each transmission and distribution  company  to  develop
    21  workforce  recruitment  programs  to ensure that each such company main-
    22  tains sufficient full-time and part-time employees to offset any  poten-
    23  tial workforce reductions attributed to retirement.
    24    6.  Electric  transmission  and  distribution company program plan. No
    25  later than one year following the commission's grid modernization order,
    26  each electric transmission and distribution company shall file a program
    27  plan for the purpose of complying with such order made pursuant to  this
    28  section.
    29    (a)  The  commission shall approve each such plan, or may modify it as
    30  it deems appropriate, if the commission finds that the plan would result

    31  in achievement of the company's obligations, promotes the sustained  and
    32  orderly  development  of the statewide electric power grid, and protects
    33  ratepayers from significant retail electric rate increases. The  commis-
    34  sion  shall  require each electric transmission and distribution company
    35  to begin implementation of its grid modernization programs within  three
    36  hundred sixty-five days of its approval.
    37    (b)  The ten year plans submitted by the transmission and distribution
    38  companies pursuant to this subdivision  shall  be  designed  to  include
    39  annual  investment  targets;  intervenor  funds;  rebates for households
    40  eligible for energy low-income assistance; consumer education and  work-

    41  force  development;  AMI deployment plans for customers with electricity
    42  demands less than 300  kilowatt  hours;  workforce  and  cyber  security
    43  systems  to  protect customer financial information and data relating to
    44  personal electrical usage.
    45    (c) The commission shall not approve a rate proposal due  to  expendi-
    46  tures  made  in  order  to  comply with this section made by an electric
    47  transmission and distribution company if such  proposal  would  increase
    48  electric  rates  for  customers  above two and one-half percent.  In the
    49  event that such cap would  be  exceeded,  the  commission  may,  in  its
    50  discretion  order  a  transmission  and  distribution  company to reduce
    51  expenditures in the following reporting year to a level  sufficient  for

    52  achieving  grid  modernization  benchmarks without significant impact to
    53  ratepayers.
    54    (d) The commission shall  proportionally  credit  and  make  available
    55  funds  for  the  purposes  of  creating a fund for tuition and financial
    56  assistance as required by subparagraph (ii) of paragraph (f) of subdivi-

        A. 1932                             8
 
     1  sion five of this section from assessments on transmission and  distrib-
     2  ution companies under direct oversight of the commission collected on or
     3  after  July  first, two thousand six for the purpose of funding electric
     4  utility  public  benefit programs, including, but not limited to, energy
     5  efficiency and energy conservation programs, other energy technology and

     6  education programs and any interest earned by the fund.
     7    7. No later than July first, two thousand sixteen, and every two years
     8  thereafter, the commission shall, after notice  and  provision  for  the
     9  opportunity  for  public  comment,  issue  a comprehensive review of the
    10  program established pursuant  to  this  section.  The  commission  shall
    11  determine, among other matters:
    12    (a)  the  progress  of  each  transmission and distribution company in
    13  meeting its obligations pursuant to this act and progress in meeting the
    14  overall annual targets for modernization; and
    15    (b) annual commitments and expenditures. The commission shall evaluate
    16  the reasonableness of the any modifications to  its  grid  modernization
    17  order.

    18    §  5.  Section 66 of the public service law is amended by adding a new
    19  subdivision 29 to read as follows:
    20    29. (a) Each electric and gas corporation with annual  gross  revenues
    21  in  excess  of two hundred million dollars shall not employ or otherwise
    22  contract for the services of a lineworker,  utility  substation  techni-
    23  cian, relay technician, engineering technician, alternative fuel techni-
    24  cian,  meter technician, natural gas technician, gas service technician,
    25  corrosion technician,  generation  instrument  and  control  technician,
    26  mechanical technician, electrical technician, auxiliary equipment opera-
    27  tor,  plant operator, radiation protection technician, unless the person
    28  meets one of the following:

    29    (i) has successfully completed an educational program  and  holds  and
    30  maintains  a  certificate administered by an American National Standards
    31  Institute (ANSI) accredited  Center  for  Energy  Workforce  Development
    32  (CEWD) Energy Industry Fundamentals Approved Course Provider;
    33    (ii)  has  completed  an  appropriate  training  program in the United
    34  States Army, Navy, Air Force, Marine Corps that is comparable to  train-
    35  ing  provided  by  the entities listed in subparagraph (i) of this para-
    36  graph;
    37    (iii) was employed by an electric and gas corporation to  perform  the
    38  duties  related  to  services  required  of one or more of the positions
    39  identified in this paragraph on or in the two years immediately prior to

    40  the effective date of this paragraph; or
    41    (iv) is in the service of an  agency  or  department  of  the  federal
    42  government,  to  the extent the person is performing services comparable
    43  to the positions listed in this paragraph.
    44    A person may be employed or contracted by an electric  or  gas  corpo-
    45  ration to perform the duties related to services required of one or more
    46  of  the  positions  identified in this paragraph during the twelve month
    47  period immediately following successful  completion  of  an  educational
    48  program  under  subparagraph (i) of this paragraph, but may not continue
    49  to be employed or contracted with beyond that period without  documenta-
    50  tion  that  the  employee  or  contracted worker holds and maintains the

    51  certification required in subparagraph (i) of this paragraph.
    52    (b) A person who qualifies to perform the duties related  to  services
    53  required  of one or more of the positions identified in paragraph (a) of
    54  this subdivision must annually complete at least  thirty-five  hours  of
    55  continuing  education  to  remain qualified to be employed or contracted
    56  with for such services by an electric and gas corporation. Any  expenses

        A. 1932                             9
 
     1  associated  with  the continuing education requirements of this subpara-
     2  graph shall be the responsibility of the employer.
     3    § 6. Section 1005 of the public authorities law is amended by adding a
     4  new subdivision 24 to read as follows:

     5    24.  Establishment  of grid modernization program. 1.  Definitions. As
     6  used in this section:
     7    (a) "Electric transmission and distribution company" or  "transmission
     8  and  distribution  company"  shall be known as an investor-owned utility
     9  having annual revenues in excess of two  hundred  million  dollars  that
    10  transmits  and  distributes  electricity  within this state or a munici-
    11  pality that distributes electricity and receives less  than  its  entire
    12  electric supply from the power authority of the state of New York and is
    13  subject  to the jurisdiction of the commission with respect to the regu-
    14  lation of the price of electricity.
    15    (b) "Full load municipal electric customer" shall be known as a  muni-

    16  cipality  that  distributes electricity and receives its entire electric
    17  supply from the power authority of the state of New York.
    18    (c)"Cooperative" shall have the same meaning as such term  is  defined
    19  in paragraph (a) of section two of the rural electric cooperative law.
    20    (d)  "Public  power  authorities" shall be known as power authority of
    21  the state of New York and the Long Island power authority.
    22    (e) "New York transmission and distribution coordinating  council"  or
    23  "transmission  council"  shall  be  known as a consortium which shall be
    24  formed pursuant to subdivision  three  of  section  sixty-six-n  of  the
    25  public  service  law  for the purpose of identifying areas of electrical

    26  congestion within New York's high voltage transmission  system  compris-
    27  ing:
    28    (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson
    29  Gas  and  Electric,  Niagara  Mohawk d/b/a National Grid, New York State
    30  Electric and Gas and Rochester Gas and Electric and Gas;
    31    (ii) Public power authorities; and
    32    (iii) the New York state energy research and development authority.
    33    (f) "New York's high voltage transmission  system"  or  "high  voltage
    34  transmission  system" shall mean electric transmission lines as referred
    35  to in paragraph (a) of subdivision two of section one hundred twenty  of
    36  the  public service law, provided that electric transmission lines shall

    37  also include electric transmission lines located wholly underground in a
    38  city in excess of one hundred twenty-five thousand persons or a  primary
    39  transmission  line  approved by the federal energy regulatory commission
    40  in connection with a hydro-electric facility and other equipment  neces-
    41  sary for electric transmission.
    42    (g)  "Smart  grid"  shall  be  known  as investments and policies that
    43  together promote one or more of the following goals:
    44    (i) Increased use of digital information and  controls  technology  to
    45  improve reliability, security and efficiency of the electric grid;
    46    (ii)  Dynamic optimization of grid operations and resources, with full
    47  cyber security;

    48    (iii) Deployment and integration of distributed resources  and  gener-
    49  ation, including renewable resources;
    50    (iv)  Development  and  incorporation  of demand-response, demand-side
    51  resources, and energy efficiency resources;
    52    (v) Deployment of "smart" technologies, real-time, automated, interac-
    53  tive technologies that optimize the physical operation of appliances and
    54  consumer devices for metering, communications concerning grid operations
    55  and status, and distribution automation;
    56    (vi) Integration of "smart" appliances and consumer devices;

        A. 1932                            10
 
     1    (vii) Deployment and integration of advanced electricity  storage  and

     2  peak-shaving  technologies,  including plug-in electric and hybrid elec-
     3  tric vehicles, thermal-storage air  conditioning  and  renewable  energy
     4  generation;
     5    (viii)  Provision  to  consumers  of  timely  information  and control
     6  options;
     7    (ix) Development of open access standards for communication and inter-
     8  operability of appliances and equipment connected to the electric  grid,
     9  including the infrastructure serving the grid;
    10    (x)  Identification and lowering of unreasonable or unnecessary barri-
    11  ers to adoption of smart grid  technologies,  practices,  services,  and
    12  business  models  that  support  energy efficiency, demand-response, and
    13  distributed generation; and

    14    (xi) Advanced metering infrastructure.
    15    (h) "Advanced metering infrastructure" or "AMI" shall be known as  the
    16  communications hardware and software and associated system software that
    17  is  designed  to  create  a network between advanced meters and electric
    18  transmission and distribution company systems and allow  for  collection
    19  and  distribution  of  information  to  customers  and  other authorized
    20  parties  in  addition  to  providing  information  to  transmission  and
    21  distribution companies.
    22    (i)  "Smart  grid  advisory  council"  means the group of stakeholders
    23  formed pursuant to paragraph (a) of subdivision two  of  section  sixty-
    24  six-n  of  the  public  service law for purposes of advising and working

    25  with the public service commission to determine the feasibility  of  the
    26  development and implementation of a smart grid advanced metering infras-
    27  tructure deployment plan.
    28    (j)  "Workforce  development"  shall  mean  training  initiatives  and
    29  curriculum sponsored by  transmission  and  distribution  companies  and
    30  public  power authorities that will ensure sufficient staffing to imple-
    31  ment  the  grid  modernization  programs.  Such  workforce   development
    32  programs  shall  be undertaken through partnerships with state universi-
    33  ties, community colleges, boards  of  cooperative  education  and  other
    34  entities accredited by the American National Standards Institute for the
    35  purposes of implementing grid modernization programs.

    36    (k) "Commission" shall mean the New York Public Service Commission.
    37    2.  No  later than two years after the effective date of this section,
    38  the authority, after consultation with  the  commission,  the  New  York
    39  transmission  and  distribution  coordinating council and the smart grid
    40  advisory council, shall approve a ten year grid  modernization  program.
    41  The authority may collaborate with one or more transmission and distrib-
    42  ution companies. The program established by the authority shall incorpo-
    43  rate,  where  feasible  and  practicable,  full  load municipal electric
    44  customers. Such program shall consist of:
    45    (a) High voltage transmission system improvements, including  but  not

    46  limited  to the replacement or upgrade of transmission facilities and/or
    47  transmission lines, which, due to their  years  in  service  or  limited
    48  transfer  capacity  have  created  or are projected to create within ten
    49  years of the effective date of this act a  significant  electric  system
    50  reliability problem, or as determined by the commission have contributed
    51  to  a  significant  increase  in  the wholesale cost of electricity. The
    52  authority shall not develop any  plan  to  invest  in  new  transmission
    53  facilities  that would require the acquisition of substantial new rights
    54  of way.   High voltage transmission  system  improvements  made  by  the
    55  authority pursuant to this section shall:


        A. 1932                            11
 
     1    (i)  encourage  the  interconnection of existing and proposed electric
     2  generating facilities, with an emphasis on  renewable  energy  technolo-
     3  gies, including but not limited to solar and wind;
     4    (ii)  allow  for the economic and cost-effective transmission of elec-
     5  tricity  from  existing  and  proposed  electric  generating  facilities
     6  located in New York to energy intensive regions located within the elec-
     7  tric  transmission  system  operated by the bulk system operator serving
     8  the state's electric system;
     9    (iii) be sited only on existing transmission rights of  way,  provided
    10  further that the acquisition of additional lands parallel to such rights
    11  of way be minimal;

    12    (iv)  be  designed to reduce susceptibility to power outages caused by
    13  events such as storm-related damage including, but not limited to,  high
    14  winds, thunderstorms and ice storms; and
    15    (v)  meet  any other standards for economy and reliability established
    16  by the commission in developing its grid modernization program  pursuant
    17  to subdivision five of section sixty-six-n of the public service law.
    18    (b)  Distribution  system  infrastructure  improvements,  which  shall
    19  include, where applicable, but not be limited to underground residential
    20  distribution cable injection  and  replacement,  mainline  cable  system
    21  refurbishment   and  replacement,  wood  utility  pole  inspection,  the

    22  replacement or relocation or underground conversion of certain  circuits
    23  which  have  been identified by the commission as susceptible to outages
    24  or service disruption by events such as storm-related damage, including,
    25  but not limited to, high winds, thunderstorms and ice  storms.  Distrib-
    26  ution  system  improvements  made  by the authority pursuant to this act
    27  shall:
    28    (i) be designed to reduce the  susceptibility  to  electrical  outages
    29  including those caused by events such as storms;
    30    (ii)  where  possible  and  practicable,  be designed and located in a
    31  manner that will reduce the reliance on utility right of way maintenance
    32  practices including tree and brush cutting; and

    33    (iii) where possible and practicable allow for and encourage the inte-
    34  gration of AMI.
    35    (c) Energy low-income assistance and  energy  usage  education,  which
    36  shall include, where applicable, but not be limited to:
    37    (i)  residential  and non-residential and small business utility rate-
    38  payer hardship programs;
    39    (ii) grants  and  other  payment  concessions  to  disabled  veterans,
    40  defined  as  a  veteran  who has received a compensation rating from the
    41  United States department of veterans affairs or from the  United  States
    42  department of defense because of a service-connected disability incurred
    43  in  the  line  of duty in the active military, naval or air services who

    44  demonstrate a hardship, a  disabled  veteran  who  became  severely  and
    45  permanently  disabled  as  a  result  of  injury  or illness suffered or
    46  incurred during military training in preparation for duty  in  a  combat
    47  theater  or  combat  zone  of  operations who demonstrate a hardship and
    48  members of the armed services or a  member  of  the  national  guard  or
    49  reserve  as defined in 10 U.S.C. Section 101 (d) (1), or a member of the
    50  state organized militia, and is called or ordered to active duty for the
    51  state, as defined in subdivision one of section six of the military  law
    52  and who demonstrates a hardship; and
    53    (iii)  budget  assistance programs that provide tools and education to

    54  authority customers with an emphasis on low-income customers and  senior
    55  citizens  to  assist  them  with  obtaining information regarding energy
    56  usage and effective means of managing energy costs.

        A. 1932                            12
 
     1    (d) Energy low-income assistance and education programs made  pursuant
     2  to  this section shall be designed to reduce or prevent disconnection of
     3  utility service to residential and non-residential customers due to  any
     4  potential increase in monthly utility bills.
     5    (e) Smart grid deployment, if determined feasible and advisable by the
     6  trustees, which will provide customers with the technological and educa-
     7  tional resources to match personal energy usage to periods of reduced or

     8  low electric demand within their respective company's service territory.
     9  Smart  grid  infrastructure  deployment  made  pursuant  to this section
    10  shall:
    11    (i) be designed to allow for electric customers  to  obtain  real-time
    12  retail electric pricing data and consumer demand data within the author-
    13  ity's  service  territory  through  the  installation  of AMI, which may
    14  include smart meters or interactive consumer software and communications
    15  applications;
    16    (ii) protect customer privacy, including personal  financial  informa-
    17  tion and data relating to personal electrical usage;
    18    (iii)  allow  any  customer  of  the  authority, at no penalty, fee or
    19  service charge, to decline the permission of the authority to replace  a

    20  current meter with an AMI device or install any AMI device at his or her
    21  property for the measurement of and storage of electric usage data;
    22    (iv) accommodate and encourage the use of smart appliances and plug-in
    23  or hybrid electric vehicles; and
    24    (v)  include  initiatives  to educate consumers on the proper usage of
    25  technologies with the aim of promoting  system-wide  reduction  of  peak
    26  energy usage.
    27    (f)  The  grid  modernization program developed by the authority shall
    28  ensure that the authority will recruit and maintain  adequate  certified
    29  full-time  and  part-time  employees and contracted workers to carry out
    30  the requirements pursuant to paragraphs (a), (b) and (e) of this  subdi-

    31  vision.    Workforce development programs made pursuant to this subdivi-
    32  sion shall:
    33    (i) Require the authority to maintain at a minimum, one instate train-
    34  ing facility for the purposes of providing full-time, part-time  employ-
    35  ees and contracted workers any necessary instruction and hands-on train-
    36  ing required for smart grid deployment made pursuant to this section;
    37    (ii)  Require  the authority to create a tuition and financial assist-
    38  ance fund to cover the costs of training prospective full-time and part-
    39  time employees and contracted workers through state universities, commu-
    40  nity colleges,  boards  of  cooperative  education  and  other  entities
    41  accredited by the American National Standards Institute;

    42    (iii)  Require the authority to develop workforce recruitment programs
    43  to ensure that it maintains sufficient full-time and part-time employees
    44  to offset any potential workforce reductions attributable to retirement.
    45    3. The grid modernization program  shall  promote  the  sustained  and
    46  orderly  development  of  the  statewide electric power grid and protect
    47  ratepayers from significant retail electric price increases. The author-
    48  ity's grid modernization program shall:
    49    (a) be designed to include a ten year grid modernization strategy with
    50  annual investment targets; rebates for households  eligible  for  energy
    51  low-income  assistance;  consumer  education  and  workforce development

    52  plans; advanced meter infrastructure deployment plans for customers with
    53  electricity demands less than three hundred  kilowatt  hours;  workforce
    54  development,  and  cyber  security systems to protect customer financial
    55  information and data relating to personal electrical usage.

        A. 1932                            13
 
     1    (b) The total expenditures undertaken by  the  authority  for  capital
     2  investments undertaken pursuant to this section shall not increase elec-
     3  tric  rates  for  authority customers above two and one-half percent. In
     4  the event that such cap would be exceeded, the authority may  as  deemed
     5  feasible  and  advisable  by  the  trustees,  reduce expenditures in the

     6  following reporting year  to  a  level  sufficient  for  achieving  grid
     7  modernization benchmarks without significant impact to ratepayers.
     8    (c)  No  later  than  July  first, two thousand fifteen, and every two
     9  years thereafter, the authority shall submit to the governor, the tempo-
    10  rary president of the senate, the speaker of the assembly, the chair  of
    11  the  senate  committee on energy and telecommunications and the chair of
    12  the assembly committee on energy a comprehensive review of  the  program
    13  established  pursuant  to  this section. The report, among other matters
    14  shall contain:
    15    (i) an analysis of the authority's progress meeting obligations pursu-
    16  ant to this act and progress in meeting the overall annual  targets  for

    17  modernization; and
    18    (ii) annual commitments and expenditures.
    19    §  7.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
    20  law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
    21  sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
    22  to read as follows:
    23    1020-ii. Establishment of grid modernization program.  1. Definitions.
    24  As used in this section:
    25    (a)  "Electric transmission and distribution company" or "transmission
    26  and distribution company" shall be known as  an  investor-owned  utility
    27  having  annual  revenues  in  excess of two hundred million dollars that
    28  transmits and distributes electricity within this  state  or  a  munici-
    29  pality  that  distributes  electricity and receives less than its entire

    30  electric supply from the power authority of the state of New York and is
    31  subject to the jurisdiction of the commission with respects to the regu-
    32  lation of the price of electricity.
    33    (b) "Full load municipal electric customer" shall be known as a  muni-
    34  cipality  that  distributes electricity and receives its entire electric
    35  supply from the power authority of the state of New York.
    36    (c) "Cooperative" shall have the same meaning as such term is  defined
    37  in subdivision (a) of section two of the rural electric cooperative law.
    38    (d)  "Public  power  authorities" shall be known as power authority of
    39  the state of New York and the Long Island power authority.
    40    (e) "New York transmission and distribution coordinating  council"  or

    41  "transmission  council"  shall  be  known as a consortium which shall be
    42  formed pursuant to subdivision  three  of  section  sixty-six-n  of  the
    43  public  service  law  for the purpose of identifying areas of electrical
    44  congestion within New York's high voltage transmission  system  compris-
    45  ing:
    46    (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson
    47  Gas  and  Electric,  Niagara  Mohawk d/b/a National Grid, New York State
    48  Electric and Gas and Rochester Gas and Electric;
    49    (ii) Public power authorities; and
    50    (iii) the New York state energy research and development authority.
    51    (f) "New York's high voltage transmission  system"  or  "high  voltage

    52  transmission  system" shall mean electric transmission lines as referred
    53  to in paragraph (a) of subdivision two of section one hundred twenty  of
    54  the  public service law, provided that electric transmission lines shall
    55  also include electric transmission lines located wholly underground in a
    56  city in excess of one hundred twenty-five thousand persons or a  primary

        A. 1932                            14
 
     1  transmission  line  approved by the federal energy regulatory commission
     2  in connection with a hydro-electric facility and other equipment  neces-
     3  sary for electric transmission.
     4    (g)  "Smart  grid"  shall  be  known  as investments and policies that
     5  together promote one or more of the following goals:

     6    (i) Increased use of digital information and  controls  technology  to
     7  improve reliability, security and efficiency of the electric grid;
     8    (ii)  Dynamic optimization of grid operations and resources, with full
     9  cyber security;
    10    (iii) Deployment and integration of distributed resources  and  gener-
    11  ation, including renewable resources;
    12    (iv)  Development  and  incorporation  of demand-response, demand-side
    13  resources, and energy efficiency resources;
    14    (v) Deployment of "smart" technologies, real-time, automated, interac-
    15  tive technologies that optimize the physical operation of appliances and
    16  consumer devices for metering, communications concerning grid operations
    17  and status, and distribution automation;

    18    (vi) Integration of "smart" appliances and consumer devices;
    19    (vii) Deployment and integration of advanced electricity  storage  and
    20  peak-shaving  technologies,  including plug-in electric and hybrid elec-
    21  tric vehicles, thermal-storage air  conditioning  and  renewable  energy
    22  generation;
    23    (viii)  Provision  to  consumers  of  timely  information  and control
    24  options;
    25    (ix) Development of open access standards for communication and inter-
    26  operability of appliances and equipment connected to the electric  grid,
    27  including the infrastructure serving the grid;
    28    (x)  Identification and lowering of unreasonable or unnecessary barri-
    29  ers to adoption of smart grid  technologies,  practices,  services,  and

    30  business  models  that  support  energy efficiency, demand-response, and
    31  distributed generation; and
    32    (xi) Advanced metering infrastructure.
    33    (h) "Advanced metering infrastructure" or "AMI" shall be known as  the
    34  communications hardware and software and associated system software that
    35  is  designed  to  create  a network between advanced meters and electric
    36  transmission and distribution company systems and allow  for  collection
    37  and  distribution  of  information  to  customers  and  other authorized
    38  parties  in  addition  to  providing  information  to  transmission  and
    39  distribution companies.
    40    (i)  "Smart  grid  advisory  council"  means the group of stakeholders

    41  formed pursuant to paragraph (a) of subdivision two  of  section  sixty-
    42  six-n  of  the  public  service law for purposes of advising and working
    43  with the public service commission to determine the feasibility  of  the
    44  development and implementation of a smart grid advanced metering infras-
    45  tructure deployment plan.
    46    (j)  "Workforce  development"  shall  mean  training  initiatives  and
    47  curriculum sponsored by  transmission  and  distribution  companies  and
    48  public  power authorities that will ensure sufficient staffing to imple-
    49  ment  the  grid  modernization  programs.  Such  workforce   development
    50  programs  shall  be undertaken through partnerships with state universi-
    51  ties, community colleges, boards  of  cooperative  education  and  other

    52  entities accredited by the American National Standards Institute for the
    53  purposes of implementing grid modernization programs.
    54    (k) "Commission" shall mean the New York public service commission.
    55    2.  No  later than two years after the effective date of this section,
    56  the authority, after consultation with  the  commission,  the  New  York

        A. 1932                            15
 
     1  transmission  and  distribution  coordinating council and the smart grid
     2  advisory council, shall approve a ten year grid  modernization  program.
     3  The authority may collaborate with one or more transmission and distrib-
     4  ution companies. The program established by the authority shall incorpo-

     5  rate,  where  feasible  and  practicable,  full  load municipal electric
     6  customers. Such program shall consist of:
     7    (a) High voltage transmission system improvements, including  but  not
     8  be  limited  to  the  replacement  or upgrade of transmission facilities
     9  and/or transmission lines, which, due  to  their  years  in  service  or
    10  limited transfer capacity have created or are projected to create within
    11  ten  years  of  the  effective  date  of this act a significant electric
    12  system reliability problem, or as  determined  by  the  commission  have
    13  contributed to a significant increase in the wholesale cost of electric-
    14  ity.  The  authority  shall not develop any plan to invest in new trans-

    15  mission facilities that would require the acquisition of substantial new
    16  rights of way.  High voltage transmission system  improvements  made  by
    17  the authority pursuant to this section shall:
    18    (i)  encourage  the  interconnection of existing and proposed electric
    19  generating facilities, with an emphasis on  renewable  energy  technolo-
    20  gies, including but not limited to solar and wind;
    21    (ii)  allow  for the economic and cost-effective transmission of elec-
    22  tricity  from  existing  and  proposed  electric  generating  facilities
    23  located in New York to energy intensive regions located within the elec-
    24  tric  transmission  system  operated by the bulk system operator serving
    25  the state's electric system;

    26    (iii) be sited only on existing transmission rights of  way,  provided
    27  further that the acquisition of additional lands parallel to such rights
    28  of way be minimal;
    29    (iv)  be  designed to reduce susceptibility to power outages caused by
    30  events such as storm-related damage including, but not limited to,  high
    31  winds, thunderstorms and ice storms; and
    32    (v)  meet  any other standards for economy and reliability established
    33  by the commission in developing its grid modernization program  pursuant
    34  to subdivision five of section sixty-six-n of the public service law.
    35    (b)  Distribution  system  infrastructure  improvements,  which  shall
    36  include, where applicable, but not be limited to underground residential

    37  distribution cable injection  and  replacement,  mainline  cable  system
    38  refurbishment   and  replacement,  wood  utility  pole  inspection,  the
    39  replacement or relocation or underground conversion of certain  circuits
    40  which  have  been identified by the commission as susceptible to outages
    41  or service disruption by events such as storm-related damage, including,
    42  but not limited to, high winds, thunderstorms and ice  storms.  Distrib-
    43  ution system improvements made by the authority pursuant to this section
    44  shall:
    45    (i)  be  designed  to  reduce the susceptibility to electrical outages
    46  including those caused by events such as storms;
    47    (ii) where possible and practicable, be  designed  and  located  in  a

    48  manner that will reduce the reliance on utility right of way maintenance
    49  practices including tree and brush cutting; and
    50    (iii) where possible and practicable allow for and encourage the inte-
    51  gration of AMI.
    52    (c)  Energy  low-income  assistance  and energy usage education, which
    53  shall include, where applicable, but not be limited to:
    54    (i) residential and non-residential and small business  utility  rate-
    55  payer hardship programs;

        A. 1932                            16
 
     1    (ii)  grants  and  other  payment  concessions  to  disabled veterans,
     2  defined as a veteran who has received a  compensation  rating  from  the
     3  United  States  department of veterans affairs or from the United States

     4  department of defense because of a service-connected disability incurred
     5  in  the  line  of duty in the active military, naval or air services who
     6  demonstrate a hardship, a  disabled  veteran  who  became  severely  and
     7  permanently  disabled  as  a  result  of  injury  or illness suffered or
     8  incurred during military training in preparation for duty  in  a  combat
     9  theater  or  combat  zone  of  operations who demonstrate a hardship and
    10  members of the armed services or a  member  of  the  national  guard  or
    11  reserve  as defined in 10 U.S.C. Section 101 (d) (1), or a member of the
    12  state organized militia, and is called or ordered to active duty for the
    13  state, as defined in subdivision one of section six of the military  law

    14  and who demonstrates a hardship; and
    15    (iii)  budget  assistance programs that provide tools and education to
    16  authority customers with an emphasis on low-income customers and  senior
    17  citizens  to  assist  them  with  obtaining information regarding energy
    18  usage and effective means of managing energy costs.
    19    (d) Energy low-income assistance and education programs made  pursuant
    20  to  this section shall be designed to reduce or prevent disconnection of
    21  utility service to residential and non-residential customers due to  any
    22  potential increase in monthly utility bills.
    23    (e) Smart grid deployment, if determined feasible and advisable by the
    24  trustees, which will provide customers with the technological and educa-

    25  tional resources to match personal energy usage to periods of reduced or
    26  low electric demand within their respective company's service territory.
    27  Smart  grid  infrastructure  deployment  made  pursuant  to this section
    28  shall:
    29    (i) be designed to allow for electric customers  to  obtain  real-time
    30  retail electric pricing data and consumer demand data within the author-
    31  ity's  service  territory  through  the  installation  of AMI, which may
    32  include smart meters or interactive consumer software and communications
    33  applications;
    34    (ii) protect customer privacy, including personal  financial  informa-
    35  tion and data relating to personal electrical usage;
    36    (iii)  allow  any  customer  of  the  authority, at no penalty, fee or

    37  service charge, to decline the permission of the authority to replace  a
    38  current meter with an AMI device or install any AMI device at his or her
    39  property for the measurement of and storage of electric usage data;
    40    (iv) accommodate and encourage the use of smart appliances and plug-in
    41  or hybrid electric vehicles; and
    42    (v)  include  initiatives  to educate consumers on the proper usage of
    43  technologies with the aim of promoting  system-wide  reduction  of  peak
    44  energy usage.
    45    (f)  The  grid  modernization program developed by the authority shall
    46  ensure that the authority will recruit and maintain  adequate  certified
    47  full-time  and  part-time  employees and contracted workers to carry out

    48  the requirements pursuant to paragraphs (a), (b) and (e) of this  subdi-
    49  vision.    Workforce development programs made pursuant to this subdivi-
    50  sion shall:
    51    (i) Require the authority to maintain at a minimum, one instate train-
    52  ing facility for the purposes of providing full-time, part-time  employ-
    53  ees and contracted workers any necessary instruction and hands-on train-
    54  ing required for smart grid deployment made pursuant to this section;
    55    (ii)  Require  the authority to create a tuition and financial assist-
    56  ance fund to cover the costs of training prospective full-time and part-

        A. 1932                            17
 
     1  time employees and contracted workers through state universities, commu-

     2  nity colleges,  boards  of  cooperative  education  and  other  entities
     3  accredited by the American National Standards Institute;
     4    (iii)  Require the authority to develop workforce recruitment programs
     5  to ensure that it maintains sufficient full-time and part-time employees
     6  to offset any potential workforce reductions attributable to retirement.
     7    3. The grid modernization program  shall  promote  the  sustained  and
     8  orderly  development  of  the  statewide electric power grid and protect
     9  ratepayers from significant retail electric price increases. The author-
    10  ity's grid modernization program shall:
    11    (a) be designed to include a ten year grid modernization strategy with
    12  annual investment targets; rebates for households  eligible  for  energy

    13  low-income  assistance;  consumer  education  and  workforce development
    14  plans; advanced meter infrastructure deployment plans for customers with
    15  electricity demands less than three hundred  kilowatt  hours;  workforce
    16  development,  and  cyber  security systems to protect customer financial
    17  information and data relating to personal electrical usage.
    18    (b) The total expenditures undertaken by  the  authority  for  capital
    19  investments undertaken pursuant to this section shall not increase elec-
    20  tric  rates  for  authority customers above two and one-half percent. In
    21  the event that such cap would be exceeded, the authority may  as  deemed
    22  feasible  and  advisable  by  the  trustees,  reduce expenditures in the

    23  following reporting year  to  a  level  sufficient  for  achieving  grid
    24  modernization benchmarks without significant impact to ratepayers.
    25    (c)  No  later  than  July  first, two thousand fifteen, and every two
    26  years thereafter, the authority shall submit to the governor, the tempo-
    27  rary president of the senate, the speaker of the assembly, the chair  of
    28  the  senate  committee on energy and telecommunications and the chair of
    29  the assembly committee on energy a comprehensive review of  the  program
    30  established  pursuant  to  this section. The report, among other matters
    31  shall contain:
    32    (i) an analysis of the authority's progress meeting obligations pursu-
    33  ant to this act and progress in meeting the overall annual  targets  for

    34  modernization; and
    35    (ii) annual commitments and expenditures.
    36    §  8.  Article  7  of the rural electric cooperative law is renumbered
    37  article 8 and sections 70, 71 and 72 of such law are renumbered sections
    38  80, 81 and 82.
    39    § 9. The rural electric cooperative law is amended  by  adding  a  new
    40  article 7 to read as follows:
    41                                  ARTICLE 7
    42                 ESTABLISHMENT OF GRID MODERNIZATION PROGRAM
    43  Section 70. Establishment of grid modernization program.
    44    §  70. Establishment of grid modernization program. 1. Definitions. As
    45  used in this section:
    46    (a) "Electric transmission and distribution company" or  "transmission
    47  and  distribution  company"  shall be known as an investor-owned utility

    48  having annual revenues in excess of two  hundred  million  dollars  that
    49  transmits  and  distributes  electricity  within this state or a munici-
    50  pality that distributes electricity and receives less  than  its  entire
    51  electric supply from the Power Authority of the State of New York and is
    52  subject  to the jurisdiction of the commission with respect to the regu-
    53  lation of the price of electricity.
    54    (b) "Full load municipal electric customer" shall be known as a  muni-
    55  cipality  that  distributes electricity and receives its entire electric
    56  supply from the Power Authority of the State of New York.

        A. 1932                            18
 
     1    (c) "Public power authorities" shall be known as the  power  authority

     2  of the state of New York and the Long Island power authority.
     3    (d)  "New  York transmission and distribution coordinating council" or
     4  "transmission council" shall be known as a  consortium  which  shall  be
     5  formed  pursuant  to  subdivision  three  of  section sixty-six-n of the
     6  public service law for the purpose of identifying  areas  of  electrical
     7  congestion  within  New York's high-voltage transmission system compris-
     8  ing:
     9    (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson
    10  Gas and Electric, Niagara Mohawk d/b/a National  Grid,  New  York  State
    11  Electric and Gas and Rochester Gas and Electric;
    12    (ii) Public power authorities; and
    13    (iii) The New York State Energy Research and Development Authority.

    14    (e)  "New  York's  high  voltage transmission system" or "high voltage
    15  transmission system" shall mean electric transmission lines as  referred
    16  to  in paragraph (a) of subdivision two of section one hundred twenty of
    17  the public service law, provided that electric transmission lines  shall
    18  also include electric transmission lines located wholly underground in a
    19  city  in excess of one hundred twenty-five thousand persons or a primary
    20  transmission line approved by the federal energy  regulatory  commission
    21  in  connection with a hydro-electric facility and other equipment neces-
    22  sary for electric transmission.
    23    (f) "Smart grid" shall be  known  as  investments  and  policies  that
    24  together promote one or more of the following goals:

    25    (i)  Increased  use  of digital information and controls technology to
    26  improve reliability, security and efficiency of the electric grid;
    27    (ii) Dynamic optimization of grid operations and resources, with  full
    28  cyber security;
    29    (iii)  Deployment  and integration of distributed resources and gener-
    30  ation, including renewable resources;
    31    (iv) Development and  incorporation  of  demand-response,  demand-side
    32  resources, and energy efficiency resources;
    33    (v) Deployment of "smart" technologies, real-time, automated, interac-
    34  tive technologies that optimize the physical operation of appliances and
    35  consumer devices for metering, communications concerning grid operations
    36  and status, and distribution automation;

    37    (vi) Integration of "smart" appliances and consumer devices;
    38    (vii)  Deployment  and integration of advanced electricity storage and
    39  peak-shaving technologies, including plug-in electric and  hybrid  elec-
    40  tric  vehicles,  thermal-storage  air  conditioning and renewable energy
    41  generation;
    42    (viii) Provision  to  consumers  of  timely  information  and  control
    43  options;
    44    (ix) Development of open access standards for communication and inter-
    45  operability  of appliances and equipment connected to the electric grid,
    46  including the infrastructure serving the grid;
    47    (x) Identification and lowering of unreasonable or unnecessary  barri-
    48  ers  to  adoption  of  smart grid technologies, practices, services, and

    49  business models that support  energy  efficiency,  demand-response,  and
    50  distributed generation; and
    51    (xi) Advanced Metering Infrastructure.
    52    (g)  "Advanced Metering Infrastructure" or "AMI" shall be known as the
    53  communications hardware and software and associated system software that
    54  is designed to create a network between  advanced  meters  and  electric
    55  transmission  and  distribution company systems and allow for collection
    56  and distribution  of  information  to  customers  and  other  authorized

        A. 1932                            19
 
     1  parties  in  addition  to  providing  information  to  transmission  and
     2  distribution companies.

     3    (h)  "Smart  Grid  advisory  council"  means the group of stakeholders
     4  formed pursuant to paragraph (a) of subdivision two  of  section  sixty-
     5  six-n  of  the  public  service law for purposes of advising and working
     6  with the public service commission to determine the feasibility  of  the
     7  development and implementation of a smart grid advanced metering infras-
     8  tructure deployment plan.
     9    (i)  "Workforce  development"  shall  mean  training  initiatives  and
    10  curriculum sponsored by  transmission  and  distribution  companies  and
    11  public  power authorities that will ensure sufficient staffing to imple-
    12  ment  the  grid  modernization  programs.  Such  workforce   development
    13  programs  shall  be undertaken through partnerships with state universi-

    14  ties, community colleges, boards  of  cooperative  education  and  other
    15  entities accredited by the American National Standards Institute for the
    16  purposes of implementing grid modernization programs.
    17    (j) "Commission" shall mean the New York Public Service Commission.
    18    2.  No  later than two years after the effective date of this section,
    19  each cooperative operating in New  York,  after  consultation  with  the
    20  commission,  the  New  York  transmission  and distribution coordinating
    21  council and the smart grid advisory council, shall approve  a  ten  year
    22  grid  modernization  program,  provided  that such program is consistent
    23  with any federal law, rule or  regulation  applicable  to  cooperatives.

    24  Said  cooperatives  may  collaborate  with  one or more transmission and
    25  distribution companies or public power authorities in administering  its
    26  program. The program established by each cooperative shall consist of:
    27    (a)  High  voltage transmission system improvements, including but not
    28  limited to the replacement or upgrade of transmission facilities  and/or
    29  transmission  lines,  which,  due  to  their years in service or limited
    30  transfer capacity have created or are projected  to  create  within  ten
    31  years  of  the  effective date of this act a significant electric system
    32  reliability problem, or as determined by the commission have contributed
    33  to a significant increase in the wholesale cost of electricity. A  coop-

    34  erative shall not develop any plan to invest in new transmission facili-
    35  ties  that  would  require  the acquisition of substantial new rights of
    36  way.  High voltage transmission system improvements made by the authori-
    37  ty pursuant to this section shall:
    38    (i) encourage the interconnection of existing  and  proposed  electric
    39  generating  facilities,  with  an emphasis on renewable energy technolo-
    40  gies, including but not limited to solar and wind;
    41    (ii) allow for the economic and cost-effective transmission  of  elec-
    42  tricity  from  existing  and  proposed  electric  generating  facilities
    43  located in New York to energy intensive regions located within the elec-
    44  tric transmission system operated by the bulk  system  operator  serving

    45  the state's electric system;
    46    (iii)  be  sited only on existing transmission rights of way, provided
    47  further that the acquisition of additional lands parallel to such rights
    48  of way be minimal;
    49    (iv) be designed to reduce susceptibility to power outages  caused  by
    50  events  such as storm-related damage including, but not limited to, high
    51  winds, thunderstorms and ice storms; and
    52    (v) meet any other standards for economy and  reliability  established
    53  by  the commission in developing its grid modernization program pursuant
    54  to subdivision five of section sixty-six-n of the public service law.
    55    (b)  Distribution  system  infrastructure  improvements,  which  shall

    56  include, where applicable, but not be limited to underground residential

        A. 1932                            20
 
     1  distribution  cable  injection  and  replacement,  mainline cable system
     2  refurbishment  and  replacement;  wood  utility  pole  inspection,   the
     3  replacement  or relocation or underground conversion of certain circuits
     4  which  have  been identified by the commission as susceptible to outages
     5  or service disruption by events such as storm-related damage, including,
     6  but not limited to, high winds, thunderstorms and ice  storms.  Distrib-
     7  ution  system  improvements  made  by a cooperative pursuant to this act
     8  shall:
     9    (i) be designed to reduce the  susceptibility  to  electrical  outages

    10  including those caused by events such as storms;
    11    (ii)  where  possible  and  practicable,  be designed and located in a
    12  manner that will reduce the reliance on utility right of way maintenance
    13  practices including tree and brush cutting; and
    14    (iii) where possible and practicable allow for and encourage the inte-
    15  gration of AMI.
    16    (c) Energy low-income assistance and  energy  usage  education,  which
    17  shall include, where applicable, but not be limited to:
    18    (i)  residential  and non-residential and small business utility rate-
    19  payer hardship programs;
    20    (ii) grants  and  other  payment  concessions  to  disabled  veterans,
    21  defined  as  a  veteran  who has received a compensation rating from the

    22  United States department of veterans affairs or from the  United  States
    23  department of defense because of a service-connected disability incurred
    24  in  the  line  of duty in the active military, naval or air services who
    25  demonstrate a hardship, a  disabled  veteran  who  became  severely  and
    26  permanently  disabled  as  a  result  of  injury  or illness suffered or
    27  incurred during military training in preparation for duty  in  a  combat
    28  theater  or  combat  zone  of  operations who demonstrate a hardship and
    29  members of the armed services or a  member  of  the  national  guard  or
    30  reserve  as defined in 10 U.S.C. Section 101 (d) (1), or a member of the
    31  state organized militia, and is called or ordered to active duty for the

    32  state, as defined in subdivision one of section six of the military  law
    33  and who demonstrates a hardship; and
    34    (iii)  budget  assistance programs that provide tools and education to
    35  authority customers with an emphasis on low-income customers and  senior
    36  citizens  to  assist  them  with  obtaining information regarding energy
    37  usage and effective means of managing energy costs.
    38    (d) Energy low-income assistance and education programs made  pursuant
    39  to  this section shall be designed to reduce or prevent disconnection of
    40  utility service to residential and non-residential customers due to  any
    41  potential increase in monthly utility bills.
    42    (e) Smart grid deployment, if determined feasible and advisable by the

    43  trustees,  will provide customers with the technological and educational
    44  resources to match personal energy usage to periods of  reduced  or  low
    45  electric  demand within each cooperative's service territory. Smart grid
    46  infrastructure deployment made pursuant to this section shall:
    47    (i) be designed to allow for electric customers  to  obtain  real-time
    48  retail electric pricing data and consumer demand data within the cooper-
    49  ative's  service  territory  through  the installation of AMI, which may
    50  include smart meters or interactive consumer software and communications
    51  applications;
    52    (ii) protect customer privacy, including personal  financial  informa-
    53  tion and data relating to personal electrical usage;

    54    (iii)  allow  any  customer  of  a  cooperative, at no penalty, fee or
    55  service charge, to decline the permission of the cooperative to  replace

        A. 1932                            21
 
     1  a  current  meter with an AMI device or install any AMI device at his or
     2  her property for the measurement of and storage of electric usage data;
     3    (iv) accommodate and encourage the use of smart appliances and plug-in
     4  or hybrid electric vehicles; and
     5    (v)  include  initiatives  to educate consumers on the proper usage of
     6  technologies with the aim of promoting  system-wide  reduction  of  peak
     7  energy usage.
     8    (f)  The grid modernization program developed by the cooperative shall

     9  ensure that each such cooperative will  recruit  and  maintain  adequate
    10  certified  full-time  and  part-time employees and contracted workers to
    11  carry out the requirements pursuant to paragraphs (a), (b)  and  (e)  of
    12  this  section.  Workforce  development  programs  made  pursuant to this
    13  subdivision shall:
    14    (i) require each cooperative to create a tuition and financial assist-
    15  ance fund to cover the costs of training prospective full-time and part-
    16  time employees and contracted workers through state universities, commu-
    17  nity colleges,  boards  of  cooperative  education  and  other  entities
    18  accredited by the American National Standards Institute;
    19    (ii)   require  each  cooperative  to  develop  workforce  recruitment

    20  programs to ensure that it maintains sufficient full-time and  part-time
    21  employees  to  offset any potential workforce reductions attributable to
    22  retirement.
    23    3. The grid modernization program  shall  promote  the  sustained  and
    24  orderly  development  of  the  statewide electric power grid and protect
    25  ratepayers from significant retail electric price increases.  A  cooper-
    26  ative's grid modernization program shall:
    27    (a) be designed to include a ten year grid modernization strategy with
    28  annual  investment  targets;  rebates for households eligible for energy
    29  low-income assistance;  consumer  education  and  workforce  development
    30  plans; advanced meter infrastructure deployment plans for customers with

    31  electricity  demands  less  than three hundred kilowatt hours; workforce
    32  development, and cyber security systems to  protect  customer  financial
    33  information and data relating to personal electrical usage.
    34    (b)  The  total  expenditures  undertaken by a cooperative for capital
    35  investments undertaken pursuant to this section shall not increase elec-
    36  tric rates for cooperative customers above two and one-half percent.  In
    37  the  event  that  such cap would be exceeded, a cooperative shall reduce
    38  expenditures in the following reporting year to a level  sufficient  for
    39  achieving  grid  modernization  benchmarks without significant impact to
    40  ratepayers.
    41    (c) No later than July first, two  thousand  fifteen,  and  every  two

    42  years  thereafter,  each  cooperative  shall submit to the governor, the
    43  temporary president of the senate, the  speaker  of  the  assembly,  the
    44  chair  of  the senate committee on energy and telecommunications and the
    45  chair of the assembly committee on energy a comprehensive review of  the
    46  program  established  pursuant  to this section. The report, among other
    47  matters shall contain:
    48    (i) an analysis of  the  cooperative's  progress  meeting  obligations
    49  pursuant  to this act and progress in meeting the overall annual targets
    50  for modernization; and
    51    (ii) annual commitments and expenditures.
    52    § 10. This act shall take effect immediately,  provided  that  section
    53  five of this act shall take effect one year after it shall have become a

    54  law.
Go to top