Establishes a clean and resilient energy program to encourage the development of clean and resilient behind the meter distributed energy resource projects.
STATE OF NEW YORK
________________________________________________________________________
7806
2025-2026 Regular Sessions
IN ASSEMBLY
April 11, 2025
___________
Introduced by M. of A. WALKER -- read once and referred to the Committee
on Energy
AN ACT to amend the public service law and the public authorities law,
in relation to establishing a clean and resilient energy program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public service law is amended by adding a new section
2 66-x to read as follows:
3 § 66-x. Clean and resilient energy program. 1. As used in this
4 section:
5 (a) "Clean and resilient behind the meter distributed energy resource
6 project" means an electricity generating system located behind a custom-
7 er meter in the state that is configured to provide uninterrupted elec-
8 tric service to a customer throughout an extended outage of the elec-
9 tricity distribution system, and which:
10 (i) (1) generates electricity without producing greenhouse gases or
11 local combustion related pollutants; or
12 (2) generates electricity or electricity and thermal energy via a
13 non-combustion process at an annual average efficiency of no less than
14 fifty-five percent measured on a lower heating value basis; or
15 (3) generates electricity and thermal energy at an annual average
16 efficiency of no less than seventy percent measured on a lower heating
17 value basis and reduces the local combustion related air pollutant
18 oxides of nitrogen by at least fifty percent in comparison to the most
19 recent annual average marginal emission factors, accounting for line
20 losses, for the New York independent system operator zone in which the
21 project is located at the time of interconnection; and
22 (ii) is located at a community continuity asset or within the bounda-
23 ries of an existing or planned microgrid.
24 (b) "Community continuity asset" means a public or private entity that
25 provides critical services to the public during an outage of the elec-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06156-01-5
A. 7806 2
1 tric distribution system. Community continuity assets shall include, but
2 are not limited to: telecommunications providers, large retail stores,
3 supermarkets, government agencies, data centers, transportation systems,
4 financial institutions, gas stations, educational institutions, health
5 care providers, large multi-family residential housing, community
6 centers, and other customers deemed by the commission to provide a crit-
7 ical service to the public that would promote or enhance health and
8 safety during an outage of the electric distribution system.
9 (c) "Extended outage" means an outage of the electric distribution
10 system that continues for a period of twenty-four hours or longer.
11 (d) "Uninterrupted" means that the output of the system is delivered
12 to the end-use customer throughout an extended electric distribution
13 system outage, with the exception of momentary interruptions associated
14 with transitions to and from grid parallel and grid islanded operations.
15 (e) "Microgrid" means a load or group of interconnected loads and
16 distributed energy resources within clearly defined electrical bounda-
17 ries that acts as a single controllable entity with respect to the grid.
18 A microgrid can connect and disconnect from the grid to enable it to
19 operate in both grid-connected or island-mode.
20 2. Within one hundred eighty days of the effective date of this
21 section, the commission shall modify the clean energy fund investment
22 plan to allocate no less than five percent of annual clean energy fund
23 expenditures to encourage the development of clean and resilient behind
24 the meter distributed energy resource projects. The program modifica-
25 tions shall require:
26 (a) administration by the New York state energy research and develop-
27 ment authority;
28 (b) planned annual expenditures that amount to no less than five
29 percent of overall annual clean energy fund expenditures commencing in
30 calendar year two thousand twenty-six and sustained each year through
31 calendar year two thousand thirty;
32 (c) incentive structures that maximize cost-effectiveness and practi-
33 cality through competitive procurements, standing-offers, or production
34 incentives;
35 (d) annual reports on the achievements and effectiveness of the
36 program; and
37 (e) any other requirements deemed appropriate by the commission to
38 effectuate the purposes of this section.
39 § 2. The public authorities law is amended by adding a new section
40 1020-nn to read as follows:
41 § 1020-nn. Clean and resilient energy initiative. 1. As used in this
42 section:
43 (a) "Clean and resilient behind the meter distributed energy resource
44 project" means an electricity generating system located behind a custom-
45 er meter that is configured to provide uninterrupted electric service to
46 a customer throughout an extended outage of the electric distribution
47 system, and which:
48 (i) (1) generates electricity without producing greenhouse gases or
49 local combustion related pollutants; or
50 (2) generates electricity or electricity and thermal energy via a
51 non-combustion process at an annual average efficiency of no less than
52 fifty-five percent measured on a lower heating value basis; or
53 (3) generates electricity and thermal energy at an annual average
54 efficiency of no less than seventy percent measured on a lower heating
55 value basis and reduces the local combustion related air pollutant
56 oxides of nitrogen by at least fifty percent in comparison to the most
A. 7806 3
1 recent annual average marginal emission factors, accounting for line
2 losses, for the New York independent system operator zone in which the
3 project is located at the time of interconnection; and
4 (ii) is located at a community continuity asset or within the bounda-
5 ries of an existing or planned microgrid.
6 (b) "Community continuity asset" means a public or private entity that
7 provides critical services to the public during an outage of the elec-
8 tric distribution system. Community continuity assets shall include,
9 but are not limited to: telecommunications providers, large retail
10 stores, supermarkets, government agencies, data centers, transportation
11 systems, financial institutions, gas stations, educational institutions,
12 health care providers, large multi-family residential housing, community
13 centers, and other customers deemed by the authority to provide a crit-
14 ical service to the public that would promote or enhance health and
15 safety during an outage of the electric distribution system.
16 (c) "Extended outage" means an outage of the electric distribution
17 system that continues for a period of twenty-four hours or longer.
18 (d) "Uninterrupted" means that the output of the system is delivered
19 to the end-use customer throughout an electric distribution system
20 outage, with the exception of momentary interruptions associated with
21 transitions to and from grid parallel and grid islanded operations.
22 (e) "Microgrid" means a load or group of interconnected loads and
23 distributed energy resources within clearly defined electrical bounda-
24 ries that acts as a single controllable entity with respect to the grid.
25 A microgrid can connect and disconnect from the grid to enable it to
26 operate in both grid-connected or island-mode.
27 2. Within one hundred eighty days of the effective date of this
28 section, the authority shall modify its existing programs that encourage
29 the development of clean and resilient behind the meter distributed
30 energy resource projects. The authority shall consult with the New York
31 state public service commission and the New York state energy research
32 and development authority in the design and implementation of such
33 program. The projects shall require:
34 (a) planned annual expenditures that amount to no less than fifteen
35 million dollars commencing in calendar year two thousand twenty-six and
36 sustained each year through calendar year two thousand thirty;
37 (b) incentive structures that maximize cost-effectiveness and practi-
38 cality through competitive procurements, standing-offers, or production
39 incentives;
40 (c) annual reports on the achievements and effectiveness of the
41 program; and
42 (d) any other requirements deemed appropriate by the authority to
43 effectuate the purposes of this section.
44 § 3. This act shall take effect immediately.
