Assembly Bill A10049

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10049
 
                           I N  A S S E M B L Y
 
                             January 30, 2026
                                ___________
 
 Introduced by M. of A. KAY -- read once and referred to the Committee on
   Energy
 
 AN  ACT  to amend the public service law and the public authorities law,
   in relation to establishing a grid  modernization  surcharge;  and  to
   amend  the  state  finance  law,  in relation to establishing the grid
   modernization fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The public service law is amended by adding a new section
 66-x to read as follows:
   § 66-X.  GRID MODERNIZATION SURCHARGE. 1. FOR  THE  PURPOSES  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "DATA  CENTER"  MEANS ANY FACILITY WITH AN INFORMATION-TECHNOLOGY
 (IT) LOAD EXCEEDING TEN MEGAWATTS (MW) OF ELECTRICAL DEMAND, USED PRIMA-
 RILY FOR THE STORAGE, MANAGEMENT, PROCESSING, OR TRANSMISSION OF DIGITAL
 INFORMATION; AND
   (B) "HIGH-INTENSITY DATA CENTER" MEANS A DATA CENTER  WITH  AN  ANNUAL
 POWER-USAGE  EFFECTIVENESS (PUE) GREATER THAN 1.3 OR AN ANNUAL ELECTRIC-
 ITY CONSUMPTION EXCEEDING 50 GIGAWATT-HOURS.
   2. (A) THE COMMISSION SHALL BY REGULATION ESTABLISH A GRID  MODERNIZA-
 TION  SURCHARGE  TO BE COLLECTED BY EACH ELECTRIC CORPORATION FROM EVERY
 COVERED DATA CENTER ACCOUNT AS A SEPARATE  LINE  ITEM  ON  THE  CUSTOMER
 BILL. THE COMMISSION SHALL SET THE SURCHARGE AS A RATE PER KILOWATT-HOUR
 OR  PER  MEGAWATT-HOUR  BILLED TO SUCH ACCOUNTS AND MAY DIFFERENTIATE BY
 VOLTAGE LEVEL OR SERVICE CLASS.
   (B) A COVERED  DATA  CENTER  THAT  DEMONSTRATES,  THROUGH  INDEPENDENT
 VERIFICATION  ACCEPTABLE TO THE COMMISSION, THAT AT LEAST NINETY PERCENT
 OF ITS ANNUAL ELECTRICITY CONSUMPTION  IS  MET  BY  RENEWABLE  RESOURCES
 UNDER  CONTRACTS  THAT  MEET  COMMISSION-ESTABLISHED  ADDITIONALITY  AND
 DELIVERABILITY CRITERIA MAY RECEIVE A PARTIAL OR FULL REDUCTION  OF  THE
 SURCHARGE.
   (C)  THE  COMMISSION  SHALL  REQUIRE EACH ELECTRIC CORPORATION TO FILE
 TARIFF RIDERS IMPLEMENTING THIS SECTION AND  SHALL  ESTABLISH  VERIFICA-
 TION, AUDITING, AND PENALTY PROVISIONS FOR NON-COMPLIANCE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13962-03-5
 A. 10049                            2
 
   3.  NO UTILITY SHALL IMPOSE OR PASS THE SURCHARGE ESTABLISHED PURSUANT
 TO SUBDIVISION TWO OF THIS SECTION TO ANY CUSTOMER.   AMOUNTS  COLLECTED
 PURSUANT  TO  THIS  SECTION  SHALL BE BILLED ONLY TO COVERED DATA CENTER
 ACCOUNTS AND SHALL NOT BE RECOVERED FROM ANY OTHER CUSTOMER CLASSES.
   4.  (A)  EVERY  UTILITY SHALL PREPARE AN ANNUAL REPORT ON COLLECTIONS,
 EXPENDITURES, AND  MEASURABLE  SYSTEM  IMPROVEMENTS,  OUTAGE  FREQUENCY,
 CONGESTION  FREQUENCY,  OR  RENEWABLE CAPACITY INTERCONNECTION RATES AND
 SUBMIT SUCH REPORT TO THE COMMISSION.
   (B) THE COMMISSION SHALL SUBMIT AN ANNUAL PUBLIC REPORT TO THE  GOVER-
 NOR,  THE  TEMPORARY  PRESIDENT  OF  THE  SENATE, AND THE SPEAKER OF THE
 ASSEMBLY SUMMARIZING TOTAL  COLLECTIONS,  DISBURSEMENTS  FROM  THE  GRID
 MODERNIZATION  FUND,  PROJECT  STATUS, AND QUANTIFIED OUTCOMES INCLUDING
 RELIABILITY INDICES, CONGESTION  RELIEF,  ADDED  HOSTING  CAPACITY,  AND
 INTERCONNECTION PROCESSING TIMES.
   5.  ANY  FUNDS  COLLECTED  PURSUANT TO THIS SECTION SHALL BE DEPOSITED
 INTO THE GRID MODERNIZATION FUND ESTABLISHED PURSUANT TO SECTION  EIGHT-
 Y-FIVE  OF  THE STATE FINANCE LAW TO FINANCE INVESTMENTS IN SYSTEM RELI-
 ABILITY, CAPACITY EXPANSION, AND INTEGRATION OF CLEAN ENERGY RESOURCES.
   § 2. The public authorities law is amended by  adding  a  new  section
 1005-e to read as follows:
   § 1005-E.  GRID MODERNIZATION SURCHARGE.  1. THE AUTHORITY SHALL ADOPT
 AND  ENFORCE  AN  EQUIVALENT SURCHARGE FOR COVERED DATA CENTER CUSTOMERS
 SERVED BY THE AUTHORITY AND SHALL REMIT ALL RECEIPTS TO THE GRID MODERN-
 IZATION FUND. THE AUTHORITY SHALL COORDINATE  WITH  THE  PUBLIC  SERVICE
 COMMISSION  TO ENSURE CONSISTENCY WITH REGULATIONS ADOPTED UNDER SECTION
 SIXTY-SIX-X OF THE PUBLIC SERVICE LAW.
   2. SUCH SURCHARGE SHALL BE DEPOSITED INTO THE GRID MODERNIZATION  FUND
 ESTABLISHED PURSUANT TO SECTION EIGHTY-FIVE OF THE STATE FINANCE LAW.
   §  3.  The  state finance law is amended by adding a new section 85 to
 read as follows:
   § 85. GRID MODERNIZATION FUND. 1. THERE IS HEREBY ESTABLISHED  IN  THE
 JOINT  CUSTODY  OF  THE STATE COMPTROLLER AND THE PUBLIC SERVICE COMMIS-
 SION, A SPECIAL FUND TO BE KNOWN AS THE "GRID MODERNIZATION FUND".
   2. SUCH FUND SHALL CONSIST OF ALL MONEYS COLLECTED PURSUANT TO  SUBDI-
 VISION  TWO  OF  SECTION SIXTY-SIX-X OF THE PUBLIC SERVICE LAW.  NOTHING
 CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING GRANTS,
 GIFTS, OR BEQUESTS FOR THE PURPOSES OF  THE  FUND  AS  DEFINED  IN  THIS
 SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. MONIES OF THE FUND SHALL BE EXPENDED ONLY TO FINANCE INVESTMENTS IN
 SYSTEM  RELIABILITY, CAPACITY EXPANSION, AND INTEGRATION OF CLEAN ENERGY
 RESOURCES.
   4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE PUBLIC SERVICE
 COMMISSION.
   §  4. This act shall take effect one year after it shall have become a
 law. Effective immediately, the addition, amendment and/or repeal of any
 rule or regulation necessary for the implementation of this act  on  its
 effective date are authorized to be made and completed on or before such
 effective date.