A 7806: 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.