STATE OF NEW YORK ________________________________________________________________________ 7480 2017-2018 Regular Sessions IN ASSEMBLY April 26, 2017 ___________ 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 This outdated transmission system is leading to 7 unnecessary congestion costs.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 2017. 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. LBD11160-01-7

A. 7480 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 sixty-six-o of the 8 public service law. 9 § 4. The public service law is amended by adding a new section 66-o to 10 read as follows: 11 § 66-o. 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 the power authority 45 of 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. 7480 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. 7480 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. 7480 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. 7480 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. 7480 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 subdivision. Workforce development program 5 made 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. 7480 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 eight 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 twenty, 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. 7480 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 26 to read as follows: 5 26. 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 the power authority 21 of 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-o 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; 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. 7480 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-o 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. 7480 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-o 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. 7480 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. 7480 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 nineteen, 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. Defi- 24 nitions. 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 the power authority 39 of 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-o 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. 7480 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-o 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. 7480 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-o 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. 7480 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. 7480 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 nineteen, 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. 7480 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-o 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. 7480 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-o 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-o 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. 7480 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. 7480 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 nineteen, 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.

Enacts the "New York grid modernization act"

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