S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2371
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 16, 2015
                                      ___________
       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    S 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 This outdated transmission system  is  leading  to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.
                                                                  LBD06344-02-5
       A. 2371                             2
    1  attract  knowledgeable workers who will be instrumental in the implemen-
    2  tation of a modernized electric grid.
    3    S 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 66-O OF THE PUBLIC
    8  SERVICE LAW.
    9    S 4. The public service law is amended by adding a new section 66-o to
   10  read as follows:
   11    S  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. 2371                             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. 2371                             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. 2371                             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. 2371                             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. 2371                             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. 2371                             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 SIX 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  EIGHTEEN,  AND  EVERY  TWO
    8  YEARS  THEREAFTER,  THE COMMISSION SHALL, AFTER NOTICE AND PROVISION FOR
    9  THE 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    S 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. 2371                             9
    1  ASSOCIATED WITH THE CONTINUING EDUCATION REQUIREMENTS OF  THIS  SUBPARA-
    2  GRAPH SHALL BE THE RESPONSIBILITY OF THE EMPLOYER.
    3    S 6. Section 1005 of the public authorities law is amended by adding a
    4  new subdivision 25 to read as follows:
    5    25.  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. 2371                            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
   24  SIXTY-SIX-O OF THE PUBLIC SERVICE LAW FOR PURPOSES OF ADVISING AND WORK-
   25  ING  WITH  THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY OF
   26  THE DEVELOPMENT AND IMPLEMENTATION OF A  SMART  GRID  ADVANCED  METERING
   27  INFRASTRUCTURE 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. 2371                            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. 2371                            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
   39  PART-TIME  EMPLOYEES  AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES,
   40  COMMUNITY 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. 2371                            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 SEVENTEEN, 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    S  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    S  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. 2371                            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
   42  SIXTY-SIX-O OF THE PUBLIC SERVICE LAW FOR PURPOSES OF ADVISING AND WORK-
   43  ING  WITH  THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY OF
   44  THE DEVELOPMENT AND IMPLEMENTATION OF A  SMART  GRID  ADVANCED  METERING
   45  INFRASTRUCTURE 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. 2371                            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. 2371                            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
       A. 2371                            17
    1  PART-TIME  EMPLOYEES  AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES,
    2  COMMUNITY 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 SEVENTEEN, 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    S  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    S 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    S  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. 2371                            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. 2371                            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
    5  SIXTY-SIX-O OF THE PUBLIC SERVICE LAW FOR PURPOSES OF ADVISING AND WORK-
    6  ING  WITH  THE PUBLIC SERVICE COMMISSION TO DETERMINE THE FEASIBILITY OF
    7  THE DEVELOPMENT AND IMPLEMENTATION OF A  SMART  GRID  ADVANCED  METERING
    8  INFRASTRUCTURE 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. 2371                            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. 2371                            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
   16  PART-TIME  EMPLOYEES  AND CONTRACTED WORKERS THROUGH STATE UNIVERSITIES,
   17  COMMUNITY 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 SEVENTEEN,  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    S 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.