STATE OF NEW YORK ________________________________________________________________________ 535 2021-2022 Regular Sessions IN ASSEMBLY (Prefiled) January 6, 2021 ___________ 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 This outdated transmission system is leading to 7 unnecessary congestion costs.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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01444-01-1

A. 535 2 1 longer in that workforce within the next several years. Workforce 2 recruitment campaigns developed by utilities, in conjunction with train- 3 ing facilities that provide certification for skilled positions and 4 offer tuition assistance, will attract knowledgeable workers who will be 5 instrumental in the implementation of a modernized electric grid. 6 § 3. Section 6-102 of the energy law is amended by adding a new subdi- 7 vision 7 to read as follows: 8 7. The board shall take an active role in advising the public service 9 commission in the development of, and any subsequent revisions to, the 10 grid modernization order required pursuant to section sixty-six-q of the 11 public service law. 12 § 4. The public service law is amended by adding a new section 66-q to 13 read as follows: 14 § 66-q. Establishment of grid modernization program. 1. Definitions. 15 As used in this section: (a) "Electric transmission and distribution 16 company" or "transmission and distribution company" shall be known as an 17 investor-owned utility having annual revenues in excess of two hundred 18 million dollars that transmits and distributes electricity within this 19 state or a municipality that distributes electricity and receives less 20 than its entire electric supply from the power authority of the state of 21 New York and is subject to the jurisdiction of the commission with 22 respect to the regulation of the price of electricity. 23 (b) "Full load municipal electric customer", shall be known as a muni- 24 cipality that distributes electricity and receives its entire electric 25 supply from the power authority of the state of New York; 26 (c) "Cooperative" shall have the same meaning as such term is defined 27 in subdivision (a) of section two of the rural electric cooperative law. 28 (d) "New York transmission and distribution coordinating council" or 29 "transmission council" shall be known as a consortium which shall be 30 formed pursuant to this act for the purpose of identifying areas of 31 electrical congestion within New York's high voltage transmission system 32 comprising: 33 (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson 34 Gas and Electric, Niagara Mohawk d/b/a National Grid, New York State 35 Electric and Gas and Rochester Gas and Electric; 36 (ii) Public power authorities; and 37 (iii) the New York state energy research and development authority; 38 (e) "New York's high voltage transmission system" or "high voltage 39 transmission system" shall mean electric transmission lines as such term 40 is referred to in paragraph (a) of subdivision two of section one 41 hundred twenty of this chapter, provided that electric transmission 42 lines shall also include electric transmission lines located wholly 43 underground in a city in excess of one hundred twenty-five thousand 44 persons or a primary transmission line approved by the federal energy 45 regulatory commission in connection with a hydro-electric facility and 46 other equipment necessary for electric transmission. 47 (f) "Public power authorities" shall be known as the power authority 48 of the state of New York and the Long Island power authority. 49 (g) "Smart grid" shall be known as investments and policies that 50 together promote one or more of the following goals: 51 (i) Increased use of digital information and controls technology to 52 improve reliability, security and efficiency of the electric grid; 53 (ii) Dynamic optimization of grid operations and resources, with full 54 cyber security; 55 (iii) Deployment and integration of distributed resources and gener- 56 ation, including renewable resources;

A. 535 3 1 (iv) Development and incorporation of demand-response, demand-side 2 resources, and energy efficiency resources; 3 (v) Deployment of "smart" technologies, real-time, automated, interac- 4 tive technologies that optimize the physical operation of appliances and 5 consumer devices for metering, communications concerning grid operations 6 and status, and distribution automation. 7 (vi) Integration of "smart" appliances and consumer devices; 8 (vii) Deployment and integration of advanced electricity storage and 9 peak-shaving technologies, including plug-in electric and hybrid elec- 10 tric vehicles, thermal-storage air conditioning and renewable energy 11 generation; 12 (viii) Provision to consumers of timely information and control 13 options; 14 (ix) Development of open access standards for communication and inter- 15 operability of appliances and equipment connected to the electric grid, 16 including the infrastructure serving the grid; 17 (x) Identification and lowering of unreasonable or unnecessary barri- 18 ers to adoption of Smart Grid technologies, practices, services, and 19 business models that support energy efficiency, demand-response, and 20 distributed generation; and 21 (xi) Advanced metering infrastructure. 22 (h) "Advanced metering infrastructure" or "AMI" shall be known as the 23 communications hardware and software and associated system software that 24 is designed to create a network between advanced meters and electric 25 transmission and distribution company systems and allow for collection 26 and distribution of information to customers and other authorized 27 parties in addition to providing information to transmission and 28 distribution companies. 29 (i) "Smart grid advisory council" means the group of stakeholders 30 formed pursuant to paragraph (a) of subdivision two of this section for 31 purposes of advising and working with the public service commission to 32 determine the feasibility of the development and implementation of a 33 Smart Grid Advanced Metering Infrastructure Deployment Plan. 34 (j) "Workforce development" shall mean training initiatives and 35 curriculum sponsored by transmission and distribution companies and 36 public power authorities that will ensure sufficient staffing to imple- 37 ment the grid modernization programs. Such workforce development 38 programs shall be undertaken through partnerships with state universi- 39 ties, community colleges, boards of cooperative education and other 40 entities accredited by the American National Standards Institute for the 41 purposes of implementing grid modernization programs. 42 2. Smart grid advisory council. (a) Within one hundred eighty days of 43 the effective date of this section the smart grid advisory council 44 ("council") shall be established. The council shall be composed of seven 45 voting members, with each member possessing either technical, business 46 or consumer expertise in smart grid technology. Five members shall be 47 appointed by the governor, one member shall be appointed by the tempo- 48 rary president of the senate and one member shall be appointed by the 49 speaker of the assembly. The governor shall appoint the chairperson of 50 the New York state energy research and development authority to serve as 51 chairperson of the council. Members of the council, except those that 52 are employees or officers of the state, its authorities or agencies, 53 shall not receive a salary or other compensation, but shall be allowed 54 the necessary and actual expenses incurred in the performance of duties 55 under this section. Any reasonable costs associated with functioning of

A. 535 4 1 the council shall be borne by the New York state energy research and 2 development authority. 3 (b) Within six months of the establishment of the council, the smart 4 grid advisory council shall submit a report to the commission on the 5 feasibility of establishing a statewide smart grid system. Such report 6 shall analyze the potential for the statewide development of a smart 7 grid system that would: 8 (i) utilize digital information technology and communications networks 9 to gather and submit information on electricity usage, real time whole- 10 sale and retail electric prices, voltage level, and disruptions on local 11 electric distribution networks; 12 (ii) allow for the integration of AMI to measure and transmit data on 13 consumer electric usage; 14 (iii) incorporate consumer products, including household appliances 15 and electric plug-in vehicles; 16 (iv) promote the use of distributed generation, including renewable 17 technologies; and 18 (v) protect the privacy of consumers and consumer usage data. 19 3. New York transmission and distribution coordinating council. With- 20 in one hundred eighty days of the effective date of this section the New 21 York transmission and distribution coordinating council shall be 22 created. Any reasonable costs associated with the functioning of the 23 committee shall be borne by the New York state energy research and 24 development authority. Within one hundred eighty days of the creation of 25 such council, the council shall submit to the commission a report iden- 26 tifying areas of concern within the state's high voltage transmission 27 system. Such report shall: 28 (a) locate and identify and propose upgrades or replacement of high 29 voltage transmission lines and/or components of the high voltage trans- 30 mission system that are in service as of the effective date of this 31 section; 32 (b) Identify equipment upgrades or installations that are necessary to 33 relieve areas of congestion within the high voltage transmission 34 network; and 35 (c) Provide a cost analysis of proposed high voltage transmission line 36 component upgrades or replacement over a ten-year period, which such 37 cost analysis shall include: 38 (i) a proposal for the cost sharing of proposed transmission upgrades 39 or replacement projects that directly or indirectly benefit customers in 40 the respective service territories of two or more electric transmission 41 and distribution companies; 42 (ii) strategies for attracting private investment for proposed trans- 43 mission upgrades or replacement projects identified in the report; 44 (iii) an analysis of the financial and other impacts of proposed tran- 45 smission upgrades or replacement projects on electric ratepayers; and 46 (iv) any other information, studies, maps or analyses the transmission 47 council deems necessary. 48 4. Commission review of smart grid advisory council report. (a) The 49 commission, thirty days upon receiving the "smart grid advisory council" 50 report pursuant to subdivision two of this section, shall determine the 51 reasonableness, efficacy and expense of the development of a ten year 52 statewide smart grid deployment by transmission and distribution compa- 53 nies and public power authorities. In making its determination the 54 commission shall consider whether smart grid deployment would serve the 55 public interest, with consideration of the impact on the safety and 56 reliability of local distribution networks, the retail cost of electric-

A. 535 5 1 ity to residential, commercial and industrial customers and the security 2 and privacy of customer energy usage information and data. 3 (b) If the commission determines that smart grid deployment meets the 4 public interest it shall require, in its grid modernization order, made 5 pursuant to subdivision five of this section that transmission and 6 distribution companies invest in smart grid deployment. 7 (c) If the commission determines that smart grid deployment would not 8 meet the public interest for reasons specified in paragraph (a) of this 9 subdivision it shall provide a statement in its grid modernization 10 order, made pursuant to subdivision five of this section detailing the 11 reasons that smart grid deployment would not serve the public interest. 12 5. Commission grid modernization order. No later than two years 13 following the effective date of this section, the commission, after 14 consultation with the state energy planning board, established pursuant 15 to article six of the energy law, the New York transmission and distrib- 16 ution coordinating council and the smart grid advisory council, shall 17 approve an order approving a ten year grid modernization program to be 18 undertaken by transmission and distribution companies. 19 (a) The order establishing the program shall include high voltage 20 transmission system improvements, which shall include, where applicable, 21 but not be limited to, the replacement or upgrade of transmission facil- 22 ities or transmission lines, which, due to their years in service or 23 limited transfer capacity have created or have the potential to create 24 within ten years of the effective date of this section a significant 25 electric system reliability problem, or as determined by the commission 26 have contributed to a significant increase in the wholesale cost of 27 electricity. The commission shall not approve any proposal to invest in 28 new transmission facilities that would require the acquisition of 29 substantial new rights of way. Any high voltage transmission system 30 improvements ordered by the commission shall: 31 (i) encourage the interconnection of existing and proposed electric 32 generating facilities, with an emphasis on renewable energy technolo- 33 gies, including but not limited to solar and wind; 34 (ii) allow for the economic and cost-effective transmission of elec- 35 tricity from existing and proposed electric generating facilities 36 located in New York to energy intensive regions located within the elec- 37 tric transmission system operated by the bulk system operator serving 38 the state's electric system; 39 (iii) be sited only on existing transmission rights of way, provided 40 further that the acquisition of additional lands parallel to such rights 41 of way be minimal; 42 (iv) be designed to reduce susceptibility to power outages caused by 43 events such as storm-related damage including, but not limited to, high 44 winds, thunderstorms and ice storms; and 45 (v) meet any other standards for economy and reliability established 46 by the commission in developing its grid modernization program. 47 (b) The order establishing the program shall also include distribution 48 system improvements such as but not be limited to underground residen- 49 tial distribution cable injection and replacement, mainline cable system 50 refurbishment and replacement, wood utility pole inspection, treatment 51 and replacement, the replacement or relocation or underground conversion 52 of certain circuits or other similar measures to minimize outages caused 53 by damage to infrastructure and equipment that have been identified as 54 susceptible to damage from events such as storm-related damage, includ- 55 ing, but not limited to, high winds, thunderstorms and ice storms. 56 Distribution system improvements made pursuant to this order shall:

A. 535 6 1 (i) be designed to reduce the susceptibility to electrical outages 2 including those caused by events such as storms; 3 (ii) where possible and practicable, be designed and located in a 4 manner that will reduce the reliance on utility right of way maintenance 5 practices including tree and brush cutting; and 6 (iii) where possible and practicable allow for and encourage the inte- 7 gration of AMI if the commission finds that it would be in the public 8 interest. 9 (c) The order establishing the program shall also include energy low- 10 income assistance and energy usage education, which shall include but 11 not be limited to: 12 (i) residential and non-residential and small business utility rate- 13 payer hardship programs; 14 (ii) grants and other payment concessions to disabled veterans, 15 defined as a veteran who has received a compensation rating from the 16 United States department of veterans affairs or from the United States 17 department of defense because of a service-connected disability incurred 18 in the line of duty in the active military, naval or air services who 19 demonstrate a hardship, a disabled veteran who became severely and 20 permanently disabled as a result of injury or illness suffered or 21 incurred during military training in preparation for duty in a combat 22 theater or combat zone of operations who demonstrate a hardship and 23 members of the armed services or a member of the national guard or 24 reserve as defined in 10 U.S.C. Section 101 (d) (1), or a member of the 25 state organized militia, and is called or ordered to active duty for the 26 state, as defined in subdivision one of section six of the military law 27 and who demonstrates a hardship; and 28 (iii) budget assistance programs that provide tools and education to 29 the general public with an emphasis on low-income customers and senior 30 citizens to assist them with obtaining information regarding energy 31 usage and effective means of managing energy costs. 32 (d) Energy low-income assistance and education programs made pursuant 33 to this section shall be designed to reduce or prevent disconnection of 34 utility service to residential and non-residential customers due to any 35 potential increase in monthly utility bills. 36 (e) If the commission determines that it is in the public interest, 37 the order establishing the program shall also include smart grid deploy- 38 ment. Smart grid infrastructure deployment made pursuant to this order 39 shall: 40 (i) be designed to allow for electric customers to obtain real-time 41 retail electric pricing data and consumer demand data within their 42 respective company's service territory through the installation of AMI, 43 which may include smart meters or interactive consumer software and 44 communications applications; 45 (ii) protect customer privacy, including personal financial informa- 46 tion and data relating to personal electrical usage; 47 (iii) allow any customer of an electric transmission and distribution 48 company to, at no penalty, fee or service charge, to decline the permis- 49 sion of his or her respective company to replace a current meter with an 50 AMI device or install any AMI device at his or her property for the 51 measurement of and storage of electric usage data; 52 (iv) accommodate and encourage the use of smart appliances and plug-in 53 or hybrid electric vehicles; and 54 (v) include initiatives to educate consumers on the proper usage of 55 technologies with the aim of promoting system-wide reduction of peak 56 energy usage.

A. 535 7 1 (f) The order establishing the program shall also require electric and 2 transmission distribution companies to administer a workforce develop- 3 ment program designed to ensure that each such company will recruit and 4 maintain adequate certified full-time and part-time employees and 5 contracted workers to carry out the requirements pursuant to paragraphs 6 (a), (b), and (c) of this subdivision. Workforce development program 7 made pursuant to this subdivision shall: 8 (i) Require each transmission and distribution company with annual 9 gross revenues in excess of two hundred million dollars to maintain, at 10 a minimum, one in-state training facility located within its respective 11 service territory for the purposes of providing full-time and part-time 12 employees and contracted workers any necessary instruction and hands-on 13 training required for smart grid deployment made pursuant to this 14 section; 15 (ii) Require each transmission and distribution company to create a 16 tuition and financial assistance fund with any monies made available 17 pursuant to paragraph (d) of subdivision six of this section to cover 18 the costs of training prospective full-time and part-time employees 19 through state universities, community colleges, boards of cooperative 20 education and other entities accredited by the American National Stand- 21 ards Institute. 22 (iii) Require each transmission and distribution company to develop 23 workforce recruitment programs to ensure that each such company main- 24 tains sufficient full-time and part-time employees to offset any poten- 25 tial workforce reductions attributed to retirement. 26 6. Electric transmission and distribution company program plan. No 27 later than one year following the commission's grid modernization order, 28 each electric transmission and distribution company shall file a program 29 plan for the purpose of complying with such order made pursuant to this 30 section. 31 (a) The commission shall approve each such plan, or may modify it as 32 it deems appropriate, if the commission finds that the plan would result 33 in achievement of the company's obligations, promotes the sustained and 34 orderly development of the statewide electric power grid, and protects 35 ratepayers from significant retail electric rate increases. The commis- 36 sion shall require each electric transmission and distribution company 37 to begin implementation of its grid modernization programs within three 38 hundred sixty-five days of its approval. 39 (b) The ten year plans submitted by the transmission and distribution 40 companies pursuant to this subdivision shall be designed to include 41 annual investment targets; intervenor funds; rebates for households 42 eligible for energy low-income assistance; consumer education and work- 43 force development; AMI deployment plans for customers with electricity 44 demands less than 300 kilowatt hours; workforce and cyber security 45 systems to protect customer financial information and data relating to 46 personal electrical usage. 47 (c) The commission shall not approve a rate proposal due to expendi- 48 tures made in order to comply with this section made by an electric 49 transmission and distribution company if such proposal would increase 50 electric rates for customers above two and one-half percent. In the 51 event that such cap would be exceeded, the commission may, in its 52 discretion order a transmission and distribution company to reduce 53 expenditures in the following reporting year to a level sufficient for 54 achieving grid modernization benchmarks without significant impact to 55 ratepayers.

A. 535 8 1 (d) The commission shall proportionally credit and make available 2 funds for the purposes of creating a fund for tuition and financial 3 assistance as required by subparagraph (ii) of paragraph (f) of subdivi- 4 sion five of this section from assessments on transmission and distrib- 5 ution companies under direct oversight of the commission collected on or 6 after July first, two thousand ten for the purpose of funding electric 7 utility public benefit programs, including, but not limited to, energy 8 efficiency and energy conservation programs, other energy technology and 9 education programs and any interest earned by the fund. 10 7. No later than July first, two thousand twenty-four, and every two 11 years thereafter, the commission shall, after notice and provision for 12 the opportunity for public comment, issue a comprehensive review of the 13 program established pursuant to this section. The commission shall 14 determine, among other matters: 15 (a) the progress of each transmission and distribution company in 16 meeting its obligations pursuant to this act and progress in meeting the 17 overall annual targets for modernization; and 18 (b) annual commitments and expenditures. The commission shall evaluate 19 the reasonableness of the any modifications to its grid modernization 20 order. 21 § 5. Section 66 of the public service law is amended by adding a new 22 subdivision 29 to read as follows: 23 29. (a) Each electric and gas corporation with annual gross revenues 24 in excess of two hundred million dollars shall not employ or otherwise 25 contract for the services of a lineworker, utility substation techni- 26 cian, relay technician, engineering technician, alternative fuel techni- 27 cian, meter technician, natural gas technician, gas service technician, 28 corrosion technician, generation instrument and control technician, 29 mechanical technician, electrical technician, auxiliary equipment opera- 30 tor, plant operator, radiation protection technician, unless the person 31 meets one of the following: 32 (i) has successfully completed an educational program and holds and 33 maintains a certificate administered by an American National Standards 34 Institute (ANSI) accredited Center for Energy Workforce Development 35 (CEWD) Energy Industry Fundamentals Approved Course Provider; 36 (ii) has completed an appropriate training program in the United 37 States Army, Navy, Air Force, Marine Corps that is comparable to train- 38 ing provided by the entities listed in subparagraph (i) of this para- 39 graph; 40 (iii) was employed by an electric and gas corporation to perform the 41 duties related to services required of one or more of the positions 42 identified in this paragraph on or in the two years immediately prior to 43 the effective date of this paragraph; or 44 (iv) is in the service of an agency or department of the federal 45 government, to the extent the person is performing services comparable 46 to the positions listed in this paragraph. 47 A person may be employed or contracted by an electric or gas corpo- 48 ration to perform the duties related to services required of one or more 49 of the positions identified in this paragraph during the twelve month 50 period immediately following successful completion of an educational 51 program under subparagraph (i) of this paragraph, but may not continue 52 to be employed or contracted with beyond that period without documenta- 53 tion that the employee or contracted worker holds and maintains the 54 certification required in subparagraph (i) of this paragraph. 55 (b) A person who qualifies to perform the duties related to services 56 required of one or more of the positions identified in paragraph (a) of

A. 535 9 1 this subdivision must annually complete at least thirty-five hours of 2 continuing education to remain qualified to be employed or contracted 3 with for such services by an electric and gas corporation. Any expenses 4 associated with the continuing education requirements of this subpara- 5 graph shall be the responsibility of the employer. 6 § 6. Section 1005 of the public authorities law is amended by adding a 7 new subdivision 28 to read as follows: 8 28. Establishment of grid modernization program. 1. Definitions. As 9 used in this section: 10 (a) "Electric transmission and distribution company" or "transmission 11 and distribution company" shall be known as an investor-owned utility 12 having annual revenues in excess of two hundred million dollars that 13 transmits and distributes electricity within this state or a munici- 14 pality that distributes electricity and receives less than its entire 15 electric supply from the power authority of the state of New York and is 16 subject to the jurisdiction of the commission with respect to the regu- 17 lation of the price of electricity. 18 (b) "Full load municipal electric customer" shall be known as a muni- 19 cipality that distributes electricity and receives its entire electric 20 supply from the power authority of the state of New York. 21 (c)"Cooperative" shall have the same meaning as such term is defined 22 in subdivision (a) of section two of the rural electric cooperative law. 23 (d) "Public power authorities" shall be known as the power authority 24 of the state of New York and the Long Island power authority. 25 (e) "New York transmission and distribution coordinating council" or 26 "transmission council" shall be known as a consortium which shall be 27 formed pursuant to subdivision three of section sixty-six-q of the 28 public service law for the purpose of identifying areas of electrical 29 congestion within New York's high voltage transmission system compris- 30 ing: 31 (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson 32 Gas and Electric, Niagara Mohawk d/b/a National Grid, New York State 33 Electric and Gas and Rochester Gas and Electric; 34 (ii) Public power authorities; and 35 (iii) the New York state energy research and development authority. 36 (f) "New York's high voltage transmission system" or "high voltage 37 transmission system" shall mean electric transmission lines as referred 38 to in paragraph (a) of subdivision two of section one hundred twenty of 39 the public service law, provided that electric transmission lines shall 40 also include electric transmission lines located wholly underground in a 41 city in excess of one hundred twenty-five thousand persons or a primary 42 transmission line approved by the federal energy regulatory commission 43 in connection with a hydro-electric facility and other equipment neces- 44 sary for electric transmission. 45 (g) "Smart grid" shall be known as investments and policies that 46 together promote one or more of the following goals: 47 (i) Increased use of digital information and controls technology to 48 improve reliability, security and efficiency of the electric grid; 49 (ii) Dynamic optimization of grid operations and resources, with full 50 cyber security; 51 (iii) Deployment and integration of distributed resources and gener- 52 ation, including renewable resources; 53 (iv) Development and incorporation of demand-response, demand-side 54 resources, and energy efficiency resources; 55 (v) Deployment of "smart" technologies, real-time, automated, interac- 56 tive technologies that optimize the physical operation of appliances and

A. 535 10 1 consumer devices for metering, communications concerning grid operations 2 and status, and distribution automation; 3 (vi) Integration of "smart" appliances and consumer devices; 4 (vii) Deployment and integration of advanced electricity storage and 5 peak-shaving technologies, including plug-in electric and hybrid elec- 6 tric vehicles, thermal-storage air conditioning and renewable energy 7 generation; 8 (viii) Provision to consumers of timely information and control 9 options; 10 (ix) Development of open access standards for communication and inter- 11 operability of appliances and equipment connected to the electric grid, 12 including the infrastructure serving the grid; 13 (x) Identification and lowering of unreasonable or unnecessary barri- 14 ers to adoption of smart grid technologies, practices, services, and 15 business models that support energy efficiency, demand-response, and 16 distributed generation; and 17 (xi) Advanced metering infrastructure. 18 (h) "Advanced metering infrastructure" or "AMI" shall be known as the 19 communications hardware and software and associated system software that 20 is designed to create a network between advanced meters and electric 21 transmission and distribution company systems and allow for collection 22 and distribution of information to customers and other authorized 23 parties in addition to providing information to transmission and 24 distribution companies. 25 (i) "Smart grid advisory council" means the group of stakeholders 26 formed pursuant to paragraph (a) of subdivision two of section sixty- 27 six-q of the public service law for purposes of advising and working 28 with the public service commission to determine the feasibility of the 29 development and implementation of a smart grid advanced metering infras- 30 tructure deployment plan. 31 (j) "Workforce development" shall mean training initiatives and 32 curriculum sponsored by transmission and distribution companies and 33 public power authorities that will ensure sufficient staffing to imple- 34 ment the grid modernization programs. Such workforce development 35 programs shall be undertaken through partnerships with state universi- 36 ties, community colleges, boards of cooperative education and other 37 entities accredited by the American National Standards Institute for the 38 purposes of implementing grid modernization programs. 39 (k) "Commission" shall mean the New York Public Service Commission. 40 2. No later than two years after the effective date of this section, 41 the authority, after consultation with the commission, the New York 42 transmission and distribution coordinating council and the smart grid 43 advisory council, shall approve a ten year grid modernization program. 44 The authority may collaborate with one or more transmission and distrib- 45 ution companies. The program established by the authority shall incorpo- 46 rate, where feasible and practicable, full load municipal electric 47 customers. Such program shall consist of: 48 (a) High voltage transmission system improvements, including but not 49 limited to the replacement or upgrade of transmission facilities and/or 50 transmission lines, which, due to their years in service or limited 51 transfer capacity have created or are projected to create within ten 52 years of the effective date of this act a significant electric system 53 reliability problem, or as determined by the commission have contributed 54 to a significant increase in the wholesale cost of electricity. The 55 authority shall not develop any plan to invest in new transmission 56 facilities that would require the acquisition of substantial new rights

A. 535 11 1 of way. High voltage transmission system improvements made by the 2 authority pursuant to this section shall: 3 (i) encourage the interconnection of existing and proposed electric 4 generating facilities, with an emphasis on renewable energy technolo- 5 gies, including but not limited to solar and wind; 6 (ii) allow for the economic and cost-effective transmission of elec- 7 tricity from existing and proposed electric generating facilities 8 located in New York to energy intensive regions located within the elec- 9 tric transmission system operated by the bulk system operator serving 10 the state's electric system; 11 (iii) be sited only on existing transmission rights of way, provided 12 further that the acquisition of additional lands parallel to such rights 13 of way be minimal; 14 (iv) be designed to reduce susceptibility to power outages caused by 15 events such as storm-related damage including, but not limited to, high 16 winds, thunderstorms and ice storms; and 17 (v) meet any other standards for economy and reliability established 18 by the commission in developing its grid modernization program pursuant 19 to subdivision five of section sixty-six-q of the public service law. 20 (b) Distribution system infrastructure improvements, which shall 21 include, where applicable, but not be limited to underground residential 22 distribution cable injection and replacement, mainline cable system 23 refurbishment and replacement, wood utility pole inspection, the 24 replacement or relocation or underground conversion of certain circuits 25 which have been identified by the commission as susceptible to outages 26 or service disruption by events such as storm-related damage, including, 27 but not limited to, high winds, thunderstorms and ice storms. Distrib- 28 ution system improvements made by the authority pursuant to this act 29 shall: 30 (i) be designed to reduce the susceptibility to electrical outages 31 including those caused by events such as storms; 32 (ii) where possible and practicable, be designed and located in a 33 manner that will reduce the reliance on utility right of way maintenance 34 practices including tree and brush cutting; and 35 (iii) where possible and practicable allow for and encourage the inte- 36 gration of AMI. 37 (c) Energy low-income assistance and energy usage education, which 38 shall include, where applicable, but not be limited to: 39 (i) residential and non-residential and small business utility rate- 40 payer hardship programs; 41 (ii) grants and other payment concessions to disabled veterans, 42 defined as a veteran who has received a compensation rating from the 43 United States department of veterans affairs or from the United States 44 department of defense because of a service-connected disability incurred 45 in the line of duty in the active military, naval or air services who 46 demonstrate a hardship, a disabled veteran who became severely and 47 permanently disabled as a result of injury or illness suffered or 48 incurred during military training in preparation for duty in a combat 49 theater or combat zone of operations who demonstrate a hardship and 50 members of the armed services or a member of the national guard or 51 reserve as defined in 10 U.S.C. Section 101 (d) (1), or a member of the 52 state organized militia, and is called or ordered to active duty for the 53 state, as defined in subdivision one of section six of the military law 54 and who demonstrates a hardship; and 55 (iii) budget assistance programs that provide tools and education to 56 authority customers with an emphasis on low-income customers and senior

A. 535 12 1 citizens to assist them with obtaining information regarding energy 2 usage and effective means of managing energy costs. 3 (d) Energy low-income assistance and education programs made pursuant 4 to this section shall be designed to reduce or prevent disconnection of 5 utility service to residential and non-residential customers due to any 6 potential increase in monthly utility bills. 7 (e) Smart grid deployment, if determined feasible and advisable by the 8 trustees, which will provide customers with the technological and educa- 9 tional resources to match personal energy usage to periods of reduced or 10 low electric demand within their respective company's service territory. 11 Smart grid infrastructure deployment made pursuant to this section 12 shall: 13 (i) be designed to allow for electric customers to obtain real-time 14 retail electric pricing data and consumer demand data within the author- 15 ity's service territory through the installation of AMI, which may 16 include smart meters or interactive consumer software and communications 17 applications; 18 (ii) protect customer privacy, including personal financial informa- 19 tion and data relating to personal electrical usage; 20 (iii) allow any customer of the authority, at no penalty, fee or 21 service charge, to decline the permission of the authority to replace a 22 current meter with an AMI device or install any AMI device at his or her 23 property for the measurement of and storage of electric usage data; 24 (iv) accommodate and encourage the use of smart appliances and plug-in 25 or hybrid electric vehicles; and 26 (v) include initiatives to educate consumers on the proper usage of 27 technologies with the aim of promoting system-wide reduction of peak 28 energy usage. 29 (f) The grid modernization program developed by the authority shall 30 ensure that the authority will recruit and maintain adequate certified 31 full-time and part-time employees and contracted workers to carry out 32 the requirements pursuant to paragraphs (a), (b) and (e) of this subdi- 33 vision. Workforce development programs made pursuant to this subdivi- 34 sion shall: 35 (i) Require the authority to maintain at a minimum, one instate train- 36 ing facility for the purposes of providing full-time, part-time employ- 37 ees and contracted workers any necessary instruction and hands-on train- 38 ing required for smart grid deployment made pursuant to this section; 39 (ii) Require the authority to create a tuition and financial assist- 40 ance fund to cover the costs of training prospective full-time and part- 41 time employees and contracted workers through state universities, commu- 42 nity colleges, boards of cooperative education and other entities 43 accredited by the American National Standards Institute; 44 (iii) Require the authority to develop workforce recruitment programs 45 to ensure that it maintains sufficient full-time and part-time employees 46 to offset any potential workforce reductions attributable to retirement. 47 3. The grid modernization program shall promote the sustained and 48 orderly development of the statewide electric power grid and protect 49 ratepayers from significant retail electric price increases. The author- 50 ity's grid modernization program shall: 51 (a) be designed to include a ten year grid modernization strategy with 52 annual investment targets; rebates for households eligible for energy 53 low-income assistance; consumer education and workforce development 54 plans; advanced meter infrastructure deployment plans for customers with 55 electricity demands less than three hundred kilowatt hours; workforce

A. 535 13 1 development, and cyber security systems to protect customer financial 2 information and data relating to personal electrical usage. 3 (b) The total expenditures undertaken by the authority for capital 4 investments undertaken pursuant to this section shall not increase elec- 5 tric rates for authority customers above two and one-half percent. In 6 the event that such cap would be exceeded, the authority may as deemed 7 feasible and advisable by the trustees, reduce expenditures in the 8 following reporting year to a level sufficient for achieving grid 9 modernization benchmarks without significant impact to ratepayers. 10 (c) No later than July first, two thousand twenty-three, and every two 11 years thereafter, the authority shall submit to the governor, the tempo- 12 rary president of the senate, the speaker of the assembly, the chair of 13 the senate committee on energy and telecommunications and the chair of 14 the assembly committee on energy a comprehensive review of the program 15 established pursuant to this section. The report, among other matters 16 shall contain: 17 (i) an analysis of the authority's progress meeting obligations pursu- 18 ant to this act and progress in meeting the overall annual targets for 19 modernization; and 20 (ii) annual commitments and expenditures. 21 § 7. Sections 1020-jj, 1020-kk and sections 1020-ll of the public 22 authorities law, sections 1020-jj, 1020-kk and 1020-ll as renumbered by 23 chapter 520 of the laws of 2018, and section 1020-ll as renumbered by 24 chapter 415 of the laws of 2017, are renumbered sections 1020-kk, 1020- 25 ll, 1020-mm and 1020-nn and a new section 1020-jj is added to read as 26 follows: 27 § 1020-jj. Establishment of grid modernization program. 1. Defi- 28 nitions. As used in this section: 29 (a) "Electric transmission and distribution company" or "transmission 30 and distribution company" shall be known as an investor-owned utility 31 having annual revenues in excess of two hundred million dollars that 32 transmits and distributes electricity within this state or a munici- 33 pality that distributes electricity and receives less than its entire 34 electric supply from the power authority of the state of New York and is 35 subject to the jurisdiction of the commission with respects to the regu- 36 lation of the price of electricity. 37 (b) "Full load municipal electric customer" shall be known as a muni- 38 cipality that distributes electricity and receives its entire electric 39 supply from the power authority of the state of New York. 40 (c) "Cooperative" shall have the same meaning as such term is defined 41 in subdivision (a) of section two of the rural electric cooperative law. 42 (d) "Public power authorities" shall be known as the power authority 43 of the state of New York and the Long Island power authority. 44 (e) "New York transmission and distribution coordinating council" or 45 "transmission council" shall be known as a consortium which shall be 46 formed pursuant to subdivision three of section sixty-six-q of the 47 public service law for the purpose of identifying areas of electrical 48 congestion within New York's high voltage transmission system compris- 49 ing: 50 (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson 51 Gas and Electric, Niagara Mohawk d/b/a National Grid, New York State 52 Electric and Gas and Rochester Gas and Electric; 53 (ii) Public power authorities; and 54 (iii) the New York state energy research and development authority. 55 (f) "New York's high voltage transmission system" or "high voltage 56 transmission system" shall mean electric transmission lines as referred

A. 535 14 1 to in paragraph (a) of subdivision two of section one hundred twenty of 2 the public service law, provided that electric transmission lines shall 3 also include electric transmission lines located wholly underground in a 4 city in excess of one hundred twenty-five thousand persons or a primary 5 transmission line approved by the federal energy regulatory commission 6 in connection with a hydro-electric facility and other equipment neces- 7 sary for electric transmission. 8 (g) "Smart grid" shall be known as investments and policies that 9 together promote one or more of the following goals: 10 (i) Increased use of digital information and controls technology to 11 improve reliability, security and efficiency of the electric grid; 12 (ii) Dynamic optimization of grid operations and resources, with full 13 cyber security; 14 (iii) Deployment and integration of distributed resources and gener- 15 ation, including renewable resources; 16 (iv) Development and incorporation of demand-response, demand-side 17 resources, and energy efficiency resources; 18 (v) Deployment of "smart" technologies, real-time, automated, interac- 19 tive technologies that optimize the physical operation of appliances and 20 consumer devices for metering, communications concerning grid operations 21 and status, and distribution automation; 22 (vi) Integration of "smart" appliances and consumer devices; 23 (vii) Deployment and integration of advanced electricity storage and 24 peak-shaving technologies, including plug-in electric and hybrid elec- 25 tric vehicles, thermal-storage air conditioning and renewable energy 26 generation; 27 (viii) Provision to consumers of timely information and control 28 options; 29 (ix) Development of open access standards for communication and inter- 30 operability of appliances and equipment connected to the electric grid, 31 including the infrastructure serving the grid; 32 (x) Identification and lowering of unreasonable or unnecessary barri- 33 ers to adoption of smart grid technologies, practices, services, and 34 business models that support energy efficiency, demand-response, and 35 distributed generation; and 36 (xi) Advanced metering infrastructure. 37 (h) "Advanced metering infrastructure" or "AMI" shall be known as the 38 communications hardware and software and associated system software that 39 is designed to create a network between advanced meters and electric 40 transmission and distribution company systems and allow for collection 41 and distribution of information to customers and other authorized 42 parties in addition to providing information to transmission and 43 distribution companies. 44 (i) "Smart grid advisory council" means the group of stakeholders 45 formed pursuant to paragraph (a) of subdivision two of section sixty- 46 six-q of the public service law for purposes of advising and working 47 with the public service commission to determine the feasibility of the 48 development and implementation of a smart grid advanced metering infras- 49 tructure deployment plan. 50 (j) "Workforce development" shall mean training initiatives and 51 curriculum sponsored by transmission and distribution companies and 52 public power authorities that will ensure sufficient staffing to imple- 53 ment the grid modernization programs. Such workforce development 54 programs shall be undertaken through partnerships with state universi- 55 ties, community colleges, boards of cooperative education and other

A. 535 15 1 entities accredited by the American National Standards Institute for the 2 purposes of implementing grid modernization programs. 3 (k) "Commission" shall mean the New York public service commission. 4 2. No later than two years after the effective date of this section, 5 the authority, after consultation with the commission, the New York 6 transmission and distribution coordinating council and the smart grid 7 advisory council, shall approve a ten year grid modernization program. 8 The authority may collaborate with one or more transmission and distrib- 9 ution companies. The program established by the authority shall incorpo- 10 rate, where feasible and practicable, full load municipal electric 11 customers. Such program shall consist of: 12 (a) High voltage transmission system improvements, including but not 13 be limited to the replacement or upgrade of transmission facilities 14 and/or transmission lines, which, due to their years in service or 15 limited transfer capacity have created or are projected to create within 16 ten years of the effective date of this section a significant electric 17 system reliability problem, or as determined by the commission have 18 contributed to a significant increase in the wholesale cost of electric- 19 ity. The authority shall not develop any plan to invest in new trans- 20 mission facilities that would require the acquisition of substantial new 21 rights of way. High voltage transmission system improvements made by 22 the authority pursuant to this section shall: 23 (i) encourage the interconnection of existing and proposed electric 24 generating facilities, with an emphasis on renewable energy technolo- 25 gies, including but not limited to solar and wind; 26 (ii) allow for the economic and cost-effective transmission of elec- 27 tricity from existing and proposed electric generating facilities 28 located in New York to energy intensive regions located within the elec- 29 tric transmission system operated by the bulk system operator serving 30 the state's electric system; 31 (iii) be sited only on existing transmission rights of way, provided 32 further that the acquisition of additional lands parallel to such rights 33 of way be minimal; 34 (iv) be designed to reduce susceptibility to power outages caused by 35 events such as storm-related damage including, but not limited to, high 36 winds, thunderstorms and ice storms; and 37 (v) meet any other standards for economy and reliability established 38 by the commission in developing its grid modernization program pursuant 39 to subdivision five of section sixty-six-q of the public service law. 40 (b) Distribution system infrastructure improvements, which shall 41 include, where applicable, but not be limited to underground residential 42 distribution cable injection and replacement, mainline cable system 43 refurbishment and replacement, wood utility pole inspection, the 44 replacement or relocation or underground conversion of certain circuits 45 which have been identified by the commission as susceptible to outages 46 or service disruption by events such as storm-related damage, including, 47 but not limited to, high winds, thunderstorms and ice storms. Distrib- 48 ution system improvements made by the authority pursuant to this section 49 shall: 50 (i) be designed to reduce the susceptibility to electrical outages 51 including those caused by events such as storms; 52 (ii) where possible and practicable, be designed and located in a 53 manner that will reduce the reliance on utility right of way maintenance 54 practices including tree and brush cutting; and 55 (iii) where possible and practicable allow for and encourage the inte- 56 gration of AMI.

A. 535 16 1 (c) Energy low-income assistance and energy usage education, which 2 shall include, where applicable, but not be limited to: 3 (i) residential and non-residential and small business utility rate- 4 payer hardship programs; 5 (ii) grants and other payment concessions to disabled veterans, 6 defined as a veteran who has received a compensation rating from the 7 United States department of veterans affairs or from the United States 8 department of defense because of a service-connected disability incurred 9 in the line of duty in the active military, naval or air services who 10 demonstrate a hardship, a disabled veteran who became severely and 11 permanently disabled as a result of injury or illness suffered or 12 incurred during military training in preparation for duty in a combat 13 theater or combat zone of operations who demonstrate a hardship and 14 members of the armed services or a member of the national guard or 15 reserve as defined in 10 U.S.C. Section 101 (d) (1), or a member of the 16 state organized militia, and is called or ordered to active duty for the 17 state, as defined in subdivision one of section six of the military law 18 and who demonstrates a hardship; and 19 (iii) budget assistance programs that provide tools and education to 20 authority customers with an emphasis on low-income customers and senior 21 citizens to assist them with obtaining information regarding energy 22 usage and effective means of managing energy costs. 23 (d) Energy low-income assistance and education programs made pursuant 24 to this section shall be designed to reduce or prevent disconnection of 25 utility service to residential and non-residential customers due to any 26 potential increase in monthly utility bills. 27 (e) Smart grid deployment, if determined feasible and advisable by the 28 trustees, which will provide customers with the technological and educa- 29 tional resources to match personal energy usage to periods of reduced or 30 low electric demand within their respective company's service territory. 31 Smart grid infrastructure deployment made pursuant to this section 32 shall: 33 (i) be designed to allow for electric customers to obtain real-time 34 retail electric pricing data and consumer demand data within the author- 35 ity's service territory through the installation of AMI, which may 36 include smart meters or interactive consumer software and communications 37 applications; 38 (ii) protect customer privacy, including personal financial informa- 39 tion and data relating to personal electrical usage; 40 (iii) allow any customer of the authority, at no penalty, fee or 41 service charge, to decline the permission of the authority to replace a 42 current meter with an AMI device or install any AMI device at his or her 43 property for the measurement of and storage of electric usage data; 44 (iv) accommodate and encourage the use of smart appliances and plug-in 45 or hybrid electric vehicles; and 46 (v) include initiatives to educate consumers on the proper usage of 47 technologies with the aim of promoting system-wide reduction of peak 48 energy usage. 49 (f) The grid modernization program developed by the authority shall 50 ensure that the authority will recruit and maintain adequate certified 51 full-time and part-time employees and contracted workers to carry out 52 the requirements pursuant to paragraphs (a), (b) and (e) of this subdi- 53 vision. Workforce development programs made pursuant to this subdivi- 54 sion shall: 55 (i) Require the authority to maintain at a minimum, one instate train- 56 ing facility for the purposes of providing full-time, part-time employ-

A. 535 17 1 ees and contracted workers any necessary instruction and hands-on train- 2 ing required for smart grid deployment made pursuant to this section; 3 (ii) Require the authority to create a tuition and financial assist- 4 ance fund to cover the costs of training prospective full-time and part- 5 time employees and contracted workers through state universities, commu- 6 nity colleges, boards of cooperative education and other entities 7 accredited by the American National Standards Institute; 8 (iii) Require the authority to develop workforce recruitment programs 9 to ensure that it maintains sufficient full-time and part-time employees 10 to offset any potential workforce reductions attributable to retirement. 11 3. The grid modernization program shall promote the sustained and 12 orderly development of the statewide electric power grid and protect 13 ratepayers from significant retail electric price increases. The author- 14 ity's grid modernization program shall: 15 (a) be designed to include a ten year grid modernization strategy with 16 annual investment targets; rebates for households eligible for energy 17 low-income assistance; consumer education and workforce development 18 plans; advanced meter infrastructure deployment plans for customers with 19 electricity demands less than three hundred kilowatt hours; workforce 20 development, and cyber security systems to protect customer financial 21 information and data relating to personal electrical usage. 22 (b) The total expenditures undertaken by the authority for capital 23 investments undertaken pursuant to this section shall not increase elec- 24 tric rates for authority customers above two and one-half percent. In 25 the event that such cap would be exceeded, the authority may as deemed 26 feasible and advisable by the trustees, reduce expenditures in the 27 following reporting year to a level sufficient for achieving grid 28 modernization benchmarks without significant impact to ratepayers. 29 (c) No later than July first, two thousand twenty-three, and every two 30 years thereafter, the authority shall submit to the governor, the tempo- 31 rary president of the senate, the speaker of the assembly, the chair of 32 the senate committee on energy and telecommunications and the chair of 33 the assembly committee on energy a comprehensive review of the program 34 established pursuant to this section. The report, among other matters 35 shall contain: 36 (i) an analysis of the authority's progress meeting obligations pursu- 37 ant to this act and progress in meeting the overall annual targets for 38 modernization; and 39 (ii) annual commitments and expenditures. 40 § 8. Article 7 of the rural electric cooperative law is renumbered 41 article 8 and sections 70, 71 and 72 of such law are renumbered sections 42 80, 81 and 82. 43 § 9. The rural electric cooperative law is amended by adding a new 44 article 7 to read as follows: 45 ARTICLE 7 46 ESTABLISHMENT OF GRID MODERNIZATION PROGRAM 47 Section 70. Establishment of grid modernization program. 48 § 70. Establishment of grid modernization program. 1. Definitions. As 49 used in this section: 50 (a) "Electric transmission and distribution company" or "transmission 51 and distribution company" shall be known as an investor-owned utility 52 having annual revenues in excess of two hundred million dollars that 53 transmits and distributes electricity within this state or a munici- 54 pality that distributes electricity and receives less than its entire 55 electric supply from the power authority of the state of New York and is

A. 535 18 1 subject to the jurisdiction of the commission with respect to the regu- 2 lation of the price of electricity. 3 (b) "Full load municipal electric customer" shall be known as a muni- 4 cipality that distributes electricity and receives its entire electric 5 supply from the power authority of the state of New York. 6 (c) "Public power authorities" shall be known as the power authority 7 of the state of New York and the Long Island power authority. 8 (d) "New York transmission and distribution coordinating council" or 9 "transmission council" shall be known as a consortium which shall be 10 formed pursuant to subdivision three of section sixty-six-q of the 11 public service law for the purpose of identifying areas of electrical 12 congestion within New York's high-voltage transmission system compris- 13 ing: 14 (i) Consolidated Edison, Orange and Rockland Utilities, Central Hudson 15 Gas and Electric, Niagara Mohawk d/b/a National Grid, New York State 16 Electric and Gas and Rochester Gas and Electric; 17 (ii) Public power authorities; and 18 (iii) The New York State Energy Research and Development Authority. 19 (e) "New York's high voltage transmission system" or "high voltage 20 transmission system" shall mean electric transmission lines as referred 21 to in paragraph (a) of subdivision two of section one hundred twenty of 22 the public service law, provided that electric transmission lines shall 23 also include electric transmission lines located wholly underground in a 24 city in excess of one hundred twenty-five thousand persons or a primary 25 transmission line approved by the federal energy regulatory commission 26 in connection with a hydro-electric facility and other equipment neces- 27 sary for electric transmission. 28 (f) "Smart grid" shall be known as investments and policies that 29 together promote one or more of the following goals: 30 (i) Increased use of digital information and controls technology to 31 improve reliability, security and efficiency of the electric grid; 32 (ii) Dynamic optimization of grid operations and resources, with full 33 cyber security; 34 (iii) Deployment and integration of distributed resources and gener- 35 ation, including renewable resources; 36 (iv) Development and incorporation of demand-response, demand-side 37 resources, and energy efficiency resources; 38 (v) Deployment of "smart" technologies, real-time, automated, interac- 39 tive technologies that optimize the physical operation of appliances and 40 consumer devices for metering, communications concerning grid operations 41 and status, and distribution automation; 42 (vi) Integration of "smart" appliances and consumer devices; 43 (vii) Deployment and integration of advanced electricity storage and 44 peak-shaving technologies, including plug-in electric and hybrid elec- 45 tric vehicles, thermal-storage air conditioning and renewable energy 46 generation; 47 (viii) Provision to consumers of timely information and control 48 options; 49 (ix) Development of open access standards for communication and inter- 50 operability of appliances and equipment connected to the electric grid, 51 including the infrastructure serving the grid; 52 (x) Identification and lowering of unreasonable or unnecessary barri- 53 ers to adoption of smart grid technologies, practices, services, and 54 business models that support energy efficiency, demand-response, and 55 distributed generation; and 56 (xi) Advanced Metering Infrastructure.

A. 535 19 1 (g) "Advanced Metering Infrastructure" or "AMI" shall be known as the 2 communications hardware and software and associated system software that 3 is designed to create a network between advanced meters and electric 4 transmission and distribution company systems and allow for collection 5 and distribution of information to customers and other authorized 6 parties in addition to providing information to transmission and 7 distribution companies. 8 (h) "Smart Grid advisory council" means the group of stakeholders 9 formed pursuant to paragraph (a) of subdivision two of section sixty- 10 six-q of the public service law for purposes of advising and working 11 with the public service commission to determine the feasibility of the 12 development and implementation of a smart grid advanced metering infras- 13 tructure deployment plan. 14 (i) "Workforce development" shall mean training initiatives and 15 curriculum sponsored by transmission and distribution companies and 16 public power authorities that will ensure sufficient staffing to imple- 17 ment the grid modernization programs. Such workforce development 18 programs shall be undertaken through partnerships with state universi- 19 ties, community colleges, boards of cooperative education and other 20 entities accredited by the American National Standards Institute for the 21 purposes of implementing grid modernization programs. 22 (j) "Commission" shall mean the New York Public Service Commission. 23 2. No later than two years after the effective date of this section, 24 each cooperative operating in New York, after consultation with the 25 commission, the New York transmission and distribution coordinating 26 council and the smart grid advisory council, shall approve a ten year 27 grid modernization program, provided that such program is consistent 28 with any federal law, rule or regulation applicable to cooperatives. 29 Said cooperatives may collaborate with one or more transmission and 30 distribution companies or public power authorities in administering its 31 program. The program established by each cooperative shall consist of: 32 (a) High voltage transmission system improvements, including but not 33 limited to the replacement or upgrade of transmission facilities and/or 34 transmission lines, which, due to their years in service or limited 35 transfer capacity have created or are projected to create within ten 36 years of the effective date of this article a significant electric 37 system reliability problem, or as determined by the commission have 38 contributed to a significant increase in the wholesale cost of electric- 39 ity. A cooperative shall not develop any plan to invest in new trans- 40 mission facilities that would require the acquisition of substantial new 41 rights of way. High voltage transmission system improvements made by 42 the authority pursuant to this section shall: 43 (i) encourage the interconnection of existing and proposed electric 44 generating facilities, with an emphasis on renewable energy technolo- 45 gies, including but not limited to solar and wind; 46 (ii) allow for the economic and cost-effective transmission of elec- 47 tricity from existing and proposed electric generating facilities 48 located in New York to energy intensive regions located within the elec- 49 tric transmission system operated by the bulk system operator serving 50 the state's electric system; 51 (iii) be sited only on existing transmission rights of way, provided 52 further that the acquisition of additional lands parallel to such rights 53 of way be minimal; 54 (iv) be designed to reduce susceptibility to power outages caused by 55 events such as storm-related damage including, but not limited to, high 56 winds, thunderstorms and ice storms; and

A. 535 20 1 (v) meet any other standards for economy and reliability established 2 by the commission in developing its grid modernization program pursuant 3 to subdivision five of section sixty-six-q of the public service law. 4 (b) Distribution system infrastructure improvements, which shall 5 include, where applicable, but not be limited to underground residential 6 distribution cable injection and replacement, mainline cable system 7 refurbishment and replacement; wood utility pole inspection, the 8 replacement or relocation or underground conversion of certain circuits 9 which have been identified by the commission as susceptible to outages 10 or service disruption by events such as storm-related damage, including, 11 but not limited to, high winds, thunderstorms and ice storms. Distrib- 12 ution system improvements made by a cooperative pursuant to this act 13 shall: 14 (i) be designed to reduce the susceptibility to electrical outages 15 including those caused by events such as storms; 16 (ii) where possible and practicable, be designed and located in a 17 manner that will reduce the reliance on utility right of way maintenance 18 practices including tree and brush cutting; and 19 (iii) where possible and practicable allow for and encourage the inte- 20 gration of AMI. 21 (c) Energy low-income assistance and energy usage education, which 22 shall include, where applicable, but not be limited to: 23 (i) residential and non-residential and small business utility rate- 24 payer hardship programs; 25 (ii) grants and other payment concessions to disabled veterans, 26 defined as a veteran who has received a compensation rating from the 27 United States department of veterans affairs or from the United States 28 department of defense because of a service-connected disability incurred 29 in the line of duty in the active military, naval or air services who 30 demonstrate a hardship, a disabled veteran who became severely and 31 permanently disabled as a result of injury or illness suffered or 32 incurred during military training in preparation for duty in a combat 33 theater or combat zone of operations who demonstrate a hardship and 34 members of the armed services or a member of the national guard or 35 reserve as defined in 10 U.S.C. Section 101 (d) (1), or a member of the 36 state organized militia, and is called or ordered to active duty for the 37 state, as defined in subdivision one of section six of the military law 38 and who demonstrates a hardship; and 39 (iii) budget assistance programs that provide tools and education to 40 authority customers with an emphasis on low-income customers and senior 41 citizens to assist them with obtaining information regarding energy 42 usage and effective means of managing energy costs. 43 (d) Energy low-income assistance and education programs made pursuant 44 to this section shall be designed to reduce or prevent disconnection of 45 utility service to residential and non-residential customers due to any 46 potential increase in monthly utility bills. 47 (e) Smart grid deployment, if determined feasible and advisable by the 48 trustees, will provide customers with the technological and educational 49 resources to match personal energy usage to periods of reduced or low 50 electric demand within each cooperative's service territory. Smart grid 51 infrastructure deployment made pursuant to this section shall: 52 (i) be designed to allow for electric customers to obtain real-time 53 retail electric pricing data and consumer demand data within the cooper- 54 ative's service territory through the installation of AMI, which may 55 include smart meters or interactive consumer software and communications 56 applications;

A. 535 21 1 (ii) protect customer privacy, including personal financial informa- 2 tion and data relating to personal electrical usage; 3 (iii) allow any customer of a cooperative, at no penalty, fee or 4 service charge, to decline the permission of the cooperative to replace 5 a current meter with an AMI device or install any AMI device at his or 6 her property for the measurement of and storage of electric usage data; 7 (iv) accommodate and encourage the use of smart appliances and plug-in 8 or hybrid electric vehicles; and 9 (v) include initiatives to educate consumers on the proper usage of 10 technologies with the aim of promoting system-wide reduction of peak 11 energy usage. 12 (f) The grid modernization program developed by the cooperative shall 13 ensure that each such cooperative will recruit and maintain adequate 14 certified full-time and part-time employees and contracted workers to 15 carry out the requirements pursuant to paragraphs (a), (b) and (e) of 16 this section. Workforce development programs made pursuant to this 17 subdivision shall: 18 (i) require each cooperative to create a tuition and financial assist- 19 ance fund to cover the costs of training prospective full-time and part- 20 time employees and contracted workers through state universities, commu- 21 nity colleges, boards of cooperative education and other entities 22 accredited by the American National Standards Institute; 23 (ii) require each cooperative to develop workforce recruitment 24 programs to ensure that it maintains sufficient full-time and part-time 25 employees to offset any potential workforce reductions attributable to 26 retirement. 27 3. The grid modernization program shall promote the sustained and 28 orderly development of the statewide electric power grid and protect 29 ratepayers from significant retail electric price increases. A cooper- 30 ative's grid modernization program shall: 31 (a) be designed to include a ten year grid modernization strategy with 32 annual investment targets; rebates for households eligible for energy 33 low-income assistance; consumer education and workforce development 34 plans; advanced meter infrastructure deployment plans for customers with 35 electricity demands less than three hundred kilowatt hours; workforce 36 development, and cyber security systems to protect customer financial 37 information and data relating to personal electrical usage. 38 (b) The total expenditures undertaken by a cooperative for capital 39 investments undertaken pursuant to this section shall not increase elec- 40 tric rates for cooperative customers above two and one-half percent. In 41 the event that such cap would be exceeded, a cooperative shall reduce 42 expenditures in the following reporting year to a level sufficient for 43 achieving grid modernization benchmarks without significant impact to 44 ratepayers. 45 (c) No later than July first, two thousand twenty-three, and every two 46 years thereafter, each cooperative shall submit to the governor, the 47 temporary president of the senate, the speaker of the assembly, the 48 chair of the senate committee on energy and telecommunications and the 49 chair of the assembly committee on energy a comprehensive review of the 50 program established pursuant to this section. The report, among other 51 matters shall contain: 52 (i) an analysis of the cooperative's progress meeting obligations 53 pursuant to this act and progress in meeting the overall annual targets 54 for modernization; and 55 (ii) annual commitments and expenditures.

A. 535 22 1 § 10. This act shall take effect immediately, provided that section 2 five of this act shall take effect one year after it shall have become a 3 law.

Enacts the "New York grid modernization act"

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