STATE OF NEW YORK ________________________________________________________________________ 9297 2025-2026 Regular Sessions IN ASSEMBLY December 10, 2025 ___________ Introduced by M. of A. TAPIA -- read once and referred to the Committee on Energy AN ACT to amend the public service law, the public authorities law and the state finance law, in relation to enacting the "homegrown energy 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 "homegrown energy act". 3 § 2. Legislative findings and intent. The legislature finds that 4 hyperscale data centers--while economically beneficial--contribute 5 significantly to increased electricity demand, which strains grid reli- 6 ability and raises utility costs for residential customers. As New York 7 state pursues its climate goals under the climate leadership and commu- 8 nity protection act (CLCPA), it is essential to ensure that energy-in- 9 tensive developments contribute equitably to the state's clean energy 10 transition. 11 To that end, this act ensures that new or significantly expanding 12 hyperscale data centers offset their energy footprint by funding the 13 installation of energy-saving heat pumps, rooftop solar, and battery 14 storage in New York homes, particularly those with outdated or ineffi- 15 cient systems. These investments shall be coordinated with NYSERDA to 16 ensure effectiveness, equity, and alignment with state climate goals. 17 § 3. The public service law is amended by adding a new article 12 to 18 read as follows: 19 ARTICLE 12 20 CLEAN HOME ENERGY OFFSET OBLIGATION 21 Section 250. Definitions. 22 251. Offset obligation; scope and administration. 23 252. Compliance reporting and enforcement. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13988-01-5

A. 9297 2 1 § 250. Definitions. For the purposes of this article, the following 2 terms shall have the following meanings: 3 1. "Hyperscale data center" means a facility, or a set of co-located 4 facilities, exceeding ten thousand square feet in size and drawing at 5 least five megawatts of electrical power for data storage, processing, 6 or transmission. 7 2. "Kilowatt-hour offset obligation" means the requirement imposed on 8 hyperscale data centers to finance or arrange for installations of 9 eligible residential technologies to offset kilowatt-hour usage. 10 3. "Eligible residential technologies" means: 11 (a) cold-climate heat pumps for space heating and cooling; 12 (b) heat pump water heaters; 13 (c) rooftop solar photovoltaic systems; and/or 14 (d) behind-the-meter battery storage systems. 15 4. "Qualified residence" means a residential dwelling in New York 16 state that: 17 (a) uses inefficient electric resistance or fossil fuel-based 18 heating/cooling systems; 19 (b) is suitable for rooftop solar or battery storage based on 20 NYSERDA's criteria; and 21 (c) meets requirements of the commission based on income, energy 22 burden, or climate vulnerability. 23 5. "Offset ratio" means the ratio of new electricity demand to the 24 quantity of kilowatt-hours to be offset annually by funded residential 25 projects under the kilowatt-hour offset obligation, as determined by the 26 commission pursuant to subdivision two of section two hundred fifty-one 27 of this article. 28 6. "NYSERDA" means the New York state energy research and development 29 authority. 30 7. "Offset compliance plan" means a hyperscale data center's plan for 31 compliance with kilowatt-hour offset obligations required to be submit- 32 ted pursuant to section two hundred fifty-two of this article. 33 § 251. Offset obligation; scope and administration. 1. Each new 34 hyperscale data center, or any existing data center undergoing a major 35 expansion exceeding five megawatts of additional load, shall offset a 36 portion of its new electricity consumption by funding eligible residen- 37 tial energy upgrades. 38 2. The commission, in consultation with NYSERDA, shall adopt a formula 39 to determine the kilowatt-hour offset obligation. Such formula shall 40 consider: 41 (a) the projected annual electricity usage of the hyperscale data 42 center at peak operation; 43 (b) the emissions intensity of the energy used; and 44 (c) the energy savings and/or distributed generation potential of 45 eligible residential technologies. 46 3. Kilowatt-hour offset obligations may be satisfied by: 47 (a) direct funding of eligible residential technology installations 48 administered by NYSERDA or its designees; 49 (b) procurement of verified energy savings or generation from third- 50 party implementers; or 51 (c) participation in a NYSERDA-managed offset pool. 52 4. NYSERDA shall: 53 (a) develop qualification criteria for qualified residences and eligi- 54 ble residential technologies; 55 (b) prioritize disadvantaged communities and low-to-moderate-income 56 households; and

A. 9297 3 1 (c) provide periodic public reporting on project installations, 2 locations, and performance. 3 5. Payments made by hyperscale data centers pursuant to this section 4 shall be paid into the clean home energy offset fund established pursu- 5 ant to section ninety-nine-tt of the state finance law. 6 § 252. Compliance reporting and enforcement. 1. Hyperscale data center 7 operators shall file an offset compliance plan with the commission and 8 NYSERDA prior to commencing construction or load expansion. 9 2. Operators shall submit annual progress reports on their offset 10 compliance plan, including: 11 (a) certified kilowatt-hour savings or generation; 12 (b) the number and location of residential units served; and 13 (c) total expenditures on kilowatt-hour offset obligation projects. 14 3. Failure to comply with the provisions of this section shall result 15 in: 16 (a) civil penalties up to fifty thousand dollars per month of noncom- 17 pliance; and 18 (b) an order to remedy by funding additional kilowatt-hour offset 19 measures. 20 4. Monies from civil penalties assessed pursuant to this section shall 21 be paid into the clean home energy offset fund established pursuant to 22 section ninety-nine-tt of the state finance law. 23 § 4. The public authorities law is amended by adding a new section 24 1854-e to read as follows: 25 § 1854-e. Clean energy retrofit coordination. The authority shall 26 coordinate implementation of offset-funded projects pursuant to article 27 twelve of the public service law to ensure that: 28 1. technical quality and performance standards are met; 29 2. participating households receive cost-free installation; 30 3. projects contribute toward climate leadership and community 31 protection act emissions reduction goals; and 32 4. community engagement and equity goals are met. 33 § 5. The state finance law is amended by adding a new section 99-tt to 34 read as follows: 35 § 99-tt. Clean home energy offset fund. 1. There is hereby established 36 in the joint custody of the state comptroller and the commissioner of 37 taxation and finance a special fund to be known as the "clean home ener- 38 gy offset fund". 39 2. The clean home energy offset fund shall consist of monies received 40 from payments made from hyperscale data centers for kilowatt-hour 41 offsets pursuant to article twelve of the public service law, and for 42 penalties assessed for noncompliance with the provisions of such arti- 43 cle, and all other monies appropriated, credited, or transferred thereto 44 from any other fund or source pursuant to law. 45 3. Monies of the fund shall be made available to the New York state 46 energy research and development authority upon request for the purpose 47 of: 48 (a) purchase and installation of eligible residential technologies, as 49 defined by section two hundred fifty of the public service law; and 50 (b) outreach, administration, and performance verification required 51 under article twelve of the public service law. 52 4. The monies shall be paid out of the fund on the audit and warrant 53 of the comptroller on vouchers certified or approved by the chair of the 54 New York state energy research and development authority, or by an offi- 55 cer or employee of the New York state energy research and development 56 authority by such chair.

A. 9297 4 1 5. Monies in such fund shall be kept separate from and shall not be 2 commingled with any other monies in the custody of the comptroller or 3 the commissioner of taxation and finance. Any monies of the fund not 4 required for immediate use may, at the discretion of the comptroller, in 5 consultation with the director of the budget, be invested by the comp- 6 troller in obligations of the United States or the state. Any income 7 earned by the investment of such monies shall be added to and become a 8 part of and shall be used for the purposes of such fund. 9 6. The director of the budget shall provide quarterly reports to the 10 speaker of the assembly, the temporary president of the senate, the 11 chair of the senate finance committee and the chair of the assembly ways 12 and means committee, on the receipts and distributions of the clean home 13 energy offset fund, including an itemization of such receipts and 14 disbursements, the historical and projected expenditures, and the 15 projected fund balance. 16 § 6. Severability clause. If any clause, sentence, paragraph, subdivi- 17 sion, or section of this act shall be adjudged by any court of competent 18 jurisdiction to be invalid, such judgment shall not affect, impair, or 19 invalidate the remainder thereof, but shall be confined in its operation 20 to the clause, sentence, paragraph, subdivision, or section thereof 21 directly involved in the controversy in which such judgment shall have 22 been rendered. It is hereby declared to be the intent of the legislature 23 that this act would have been enacted even if such invalid provisions 24 had not been included herein. 25 § 7. This act shall take effect one year after it shall have become a 26 law. Effective immediately, the addition, amendment and/or repeal of any 27 rule or regulation necessary for the implementation of this act on its 28 effective date are authorized to be made and completed on or before such 29 effective date.

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