A 10635: Enacts the "affordable clean energy (ACE) act"; exempts renewable energy systems from certain requirements related to energy facilities (Part A); directs the New York power authority to propose a minimum of two priority transmission projects to address the areas of highest need on the bulk transmission system (Part B); exempts payment in lieu of taxes revenue from property tax cap calculations (Part C).

  
  STATE OF NEW YORK ________________________________________________________________________ 10635  IN ASSEMBLY March 13, 2026 ___________ Introduced by M. of A. BRONSON -- read once and referred to the Commit- tee on Energy AN ACT to amend the public service law, in relation to exempting renewa- ble energy systems from certain requirements related to energy facili- ties (Part A); to amend part JJJ of chapter 58 of the laws of 2020, amending the public service law and other laws relating to accelerat- ing the growth of renewable energy facilities to meet critical state energy policy goals, in relation to directing the New York power authority to propose a minimum of two priority transmission projects to address the areas of highest need on the bulk transmission system (Part B); and to amend the general municipal law and the education law, in relation to exempting payment in lieu of taxes revenue from property tax cap calculations (Part C); The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "affordable 2 clean energy (ACE) act". 3 § 2. This act enacts into law major components of legislation which 4 are necessary to implement the "affordable clean energy (ACE) act". Each 5 component is wholly contained within a Part identified as Parts A 6 through C. The effective date for each particular provision contained 7 within such Part is set forth in the last section of such Part. Any 8 provision in any section contained within a Part, including the effec- 9 tive date of the Part, which makes a reference to a section "of this 10 act", when used in connection with that particular component, shall be 11 deemed to mean and refer to the corresponding section of the Part in 12 which it is found. Section four of this act sets forth the general 13 effective date of this act. 14 PART A 15 Section 1. Subdivision 1 of section 68 of the public service law, as 16 amended by section 5 of part X of chapter 57 of the laws of 2013, is 17 amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08364-03-6 
 A. 10635 2 1 1. Certificate required. No gas corporation or electric corporation 2 shall begin construction of a gas plant or electric plant, except for 3 renewable energy systems as defined in section sixty-six-p of this arti- 4 cle or energy storage systems not paired with electric generation 5 systems, without first having obtained the permission and approval of 6 the commission. No such corporation shall exercise any right or privi- 7 lege under any franchise hereafter granted, or under any franchise here- 8 tofore granted but not heretofore actually exercised, or the exercise of 9 which shall have been suspended for more than one year, without first 10 having obtained a certificate of public convenience and necessity issued 11 by the commission. Before such certificate shall be issued a certified 12 copy of the charter of such corporation shall be filed in the office of 13 the commission, together with a verified statement of the president and 14 secretary of the corporation, showing that it has received the required 15 consent of the proper municipal authorities. The commission shall have 16 power to grant the permission and approval herein specified whenever it 17 shall after due hearing determine that such construction or such exer- 18 cise of the right, privilege or franchise is convenient and necessary 19 for the public service. In making such a determination, the commission 20 shall consider the economic feasibility of the corporation, the corpo- 21 ration's ability to finance improvements of a gas plant or electric 22 plant, render safe, adequate and reliable service, and provide just and 23 reasonable rates, and whether issuance of a certificate is in the public 24 interest. Except as provided in article fourteen-A of the general munic- 25 ipal law, no municipality shall build, maintain and operate for other 26 than municipal purposes any works or systems for the manufacture and 27 supplying of gas or electricity for lighting purposes without a certif- 28 icate of authority granted by the commission. If the certificate of 29 authority is refused, no further proceedings shall be taken by such 30 municipality before the commission, but a new application may be made 31 therefor after one year from the date of such refusal. 32 § 2. The closing paragraph of section 69 of the public service law, as 33 amended by chapter 222 of the laws of 1991, is amended to read as 34 follows: 35 A permission or approval by the public service commission of a merger 36 or consolidation shall not be deemed to be an approval of the value of 37 any property or accounts of any company involved in the merger at the 38 time of the merger, nor shall any such permission or approval be 39 construed to be a certification by the public service commission that 40 the bonds and/or capital stock of any such merged, merging or consol- 41 idating corporations are represented in value by commensurate physical 42 assets of such corporations, nor shall such approval be evidence as to 43 the value of any such property or account in subsequent rate proceedings 44 or before any court or public body. No provision of this section shall 45 apply to electric corporations where electricity is generated from 46 renewable energy systems as defined in section sixty-six-p of this arti- 47 cle. 48 § 3. Section 70 of the public service law is amended by adding a new 49 subdivision 8 to read as follows: 50 8. No provision of this section shall apply to electric corporations 51 where electricity is generated from renewable energy systems as defined 52 in section sixty-six-p of this article. 53 § 4. This act shall take effect immediately. 54 PART B 
 A. 10635 3 1 Section 1. Subdivision 5 of section 7 of part JJJ of chapter 58 of the 2 laws of 2020, amending the public service law and other laws relating to 3 accelerating the growth of renewable energy facilities to meet critical 4 state energy policy goals, is amended to read as follows: 5 5. The legislature finds and determines that timely development of the 6 bulk transmission investments identified in the state bulk transmission 7 investment plan is in the public interest of the people of the state of 8 New York. The legislature further finds and determines that the power 9 authority of the state of New York ("power authority") owns and operates 10 backbone electric transmission assets in New York, has rights-of-way 11 that can support in whole or in part bulk transmission investment 12 projects, and has the financial stability, access to capital, technical 13 expertise and experience to effectuate expeditious development of bulk 14 transmission investments needed to help the state meet the CLCPA 15 targets, and thus it is appropriate for the power authority as deemed 16 feasible and advisable by its trustees, by itself or in collaboration 17 with other parties as it determines to be appropriate, to develop those 18 bulk transmission investments found by the commission to be needed expe- 19 ditiously to achieve CLCPA targets ("priority transmission projects"). 20 The legislature further finds and determines, following the issuance 21 of the climate scoping plan required by the CLCPA, that it is in the 22 public interest of the people of the state of New York for the power 23 authority to propose a minimum of two such priority transmission 24 projects, within nine months of the effective date of the chapter of the 25 laws of 2026 that amended this subdivision, to address the areas of 26 highest need on the bulk transmission system and further facilitate the 27 development of renewable energy projects in areas where there are limi- 28 tations on the capacity to interconnect new power generating facilities. 29 One of these projects shall address the locations of highest needs for 30 deploying additional renewable energy projects identified by the New 31 York independent system operator in its most recent twenty-year system 32 outlook. The other project shall propose grid infrastructure upgrades in 33 locations currently underserved by the grid for interconnecting renewa- 34 ble energy projects, where there is otherwise the potential to develop 35 renewable energy projects (to establish "renewable energy zones") as 36 determined by the power authority. The commission shall expeditiously 37 review and approve or reject these two proposals. 38 The power authority shall, through a public process, solicit interest 39 from potential co-participants in each project it has agreed to develop 40 and assess whether any joint development would provide for significant 41 additional benefits in achieving the CLCPA targets. The power authority 42 may thereafter determine to undertake the development of the project on 43 its own, or undertake the project jointly with one or more other parties 44 on such terms and conditions as the power authority finds to be appro- 45 priate and, notwithstanding any other law to the contrary, enter into 46 such agreements and take such other actions the power authority deter- 47 mines to be necessary in order to undertake and complete timely develop- 48 ment of the project. The intent of this act is for the power authority 49 to develop priority transmission projects authorized in this subdivi- 50 sion. For priority projects that the authority determines to undertake 51 and that are not substantially within the power authority's existing 52 rights of way, the authority shall, as deemed feasible and advisable by 53 its board of trustees, select private sector participants through a 54 competitive bidding process, provided however that priority transmission 55 projects is not intended to include generation lead lines, or repairs 
 A. 10635 4 1 to, replacement of or upgrades to the power authority's own transmission 2 assets. 3 To foster the continued development of community solar in New York, 4 the commission and the energy research and development authority should 5 determine a threshold for non-affordability for the interconnection 6 costs required by an investor-owned utility. When the required local 7 system upgrade costs for interconnecting a community solar project or a 8 group of community solar projects are above the non-affordability thres- 9 hold, the power authority shall intervene and implement a mechanism for 10 providing low interest financing for the costs of local system upgrades 11 above the threshold for the developer or developers of such community 12 solar project or projects. 13 § 2. This act shall take effect immediately; provided, however, the 14 amendments to section 7 of part JJJ of chapter 58 of the laws of 2020 15 made by section one of this act shall not affect the repeal of such 16 section and shall expire therewith. 17 PART C 18 Section 1. Subparagraphs (iii) and (vi) of paragraph (c) of subdivi- 19 sion 3 of section 3-c of the general municipal law, as added by section 20 1 of part A of chapter 97 of the laws of 2011, are amended to read as 21 follows: 22 (iii) Add any payments in lieu of taxes that were receivable in the 23 prior fiscal year, provided however, it shall not include payments in 24 lieu of taxes that were receivable from renewable energy generation 25 projects as defined in section sixty-six-p of the public service law. 26 (vi) Subtract any payments in lieu of taxes receivable in the coming 27 fiscal year, provided however, it shall not include payments in lieu of 28 taxes that are receivable from renewable energy generation projects as 29 defined in section sixty-six-p of the public service law. 30 § 2. Subparagraphs 3 and 6 of paragraph a of subdivision 3 of section 31 2023-a of the education law, as added by section 2 of part A of chapter 32 97 of the laws of 2011, are amended to read as follows: 33 (3) Add any payments in lieu of taxes that were receivable in the 34 prior school year, provided however, it shall not include payments in 35 lieu of taxes that were receivable from renewable energy generation 36 projects as defined in section sixty-six-p of the public service law. 37 (6) Subtract any payments in lieu of taxes receivable in the coming 38 fiscal year, provided however, it shall not include payments in lieu of 39 taxes that are receivable from renewable energy generation projects as 40 defined in section sixty-six-p of the public service law. 41 § 3. This act shall take effect immediately; provided, however, that 42 section one of this act shall first apply to the levy of taxes by local 43 governments for the fiscal year that begins in 2026; and provided, 44 further, that section two of this act shall first apply to school 45 district budgets and the budget adoption process for the 2026-2027 46 school year. 47 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 48 sion, section or part of this act shall be adjudged by any court of 49 competent jurisdiction to be invalid, such judgment shall not affect, 50 impair, or invalidate the remainder thereof, but shall be confined in 51 its operation to the clause, sentence, paragraph, subdivision, section 52 or part thereof directly involved in the controversy in which such judg- 53 ment shall have been rendered. It is hereby declared to be the intent of 
 A. 10635 5 1 the legislature that this act would have been enacted even if such 2 invalid provisions had not been included herein. 3 § 4. This act shall take effect immediately; provided, however, that 4 the applicable effective date of Parts A through C of this act shall be 5 as specifically set forth in the last section of such Parts.