S T A T E O F N E W Y O R K
________________________________________________________________________
9422
I N S E N A T E
March 11, 2026
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to the use of funds
in the New York state climate investment account; to amend the tax law
and the state finance law, in relation to establishing a one-year
utility bill tax and surcharge holiday; to amend the tax law, in
relation to establishing a two-year green energy tax holiday; to amend
the public service law, in relation to legislative hearings and audits
of utilities and reconsideration of rate increases; directing the
public service commission to conduct a study analyzing the economic
impact of the use of smart meters; to amend the public service law, in
relation to costs and expenses of the department of public service and
the public service commission; to amend the tax law, in relation to
providing for a ratepayer protection tax credit; to repeal certain
provisions of the public service law relating to the assessment of
costs and expenses of the department of public service and the public
service commission; and providing for the repeal of certain provisions
upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (c) of subdivision 3 of section 99-qq of the
state finance law, as added by section 2 of part TT of chapter 56 of the
laws of 2023, is amended to read as follows:
(c) The New York climate action fund climate investment account shall
consist of moneys received by the state pursuant to paragraph (c) of
subdivision twenty-five of section eighteen hundred fifty-four of the
public authorities law, and all other moneys appropriated, credited, or
transferred thereto from any other fund or source pursuant to law.
Moneys of the account shall be made available for the purposes of
assisting the state in transitioning to a less carbon intensive economy,
including but not limited to: (i) purposes which are consistent with the
general findings of the scoping plan prepared pursuant to section
75-0103 of the environmental conservation law; (ii) administrative and
implementation costs, auction design and support costs, program design,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15092-02-6
S. 9422 2
evaluation, and other associated costs; and (iii) measures which prior-
itize disadvantaged communities by supporting actions consistent with
the requirements of paragraph d of subdivision three of section 75-0109
and of section 75-0117 of the environmental conservation law, identified
through community decision-making and stakeholder input, including early
action to reduce greenhouse gas emissions in disadvantaged communities;
PROVIDED, HOWEVER, THAT ANY SURPLUS OR UNCOMMITTED FUNDS REMAINING IN
THE ACCOUNT AT THE END OF EACH FISCAL YEAR THAT WERE COLLECTED BY UTILI-
TIES ON A BILL-AS-YOU-GO BASIS PURSUANT TO THE CLEAN ENERGY FUND FRAME-
WORK ORDERED BY THE PUBLIC SERVICE COMMISSION, INCLUDING ANY SUCH FUNDS
COLLECTED BY UTILITIES BUT NOT TRANSFERRED TO SUCH ACCOUNT OR TRANS-
FERRED TO THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
SHALL BE CREDITED TO RATEPAYER ACCOUNTS.
§ 2. The tax law is amended by adding a new section 47-a to read as
follows:
§ 47-A. UTILITY BILL TAX AND SURCHARGE HOLIDAY. (A) DEFINITIONS. FOR
THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING
MEANINGS:
(1) "APPLICABLE PERIOD" SHALL MEAN THE PERIOD BEGINNING FOURTEEN DAYS
AFTER THE EFFECTIVE DATE OF THIS SECTION AND ENDING ONE YEAR AFTER SUCH
BEGINNING DATE.
(2) "UTILITY COMPANY" SHALL HAVE THE SAME MEANING AS SUCH TERM IS
DEFINED IN SECTION TWO OF THE PUBLIC SERVICE LAW.
(B) (1) EXEMPTION FROM TAXATION. NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, RULE OR REGULATION TO THE CONTRARY, THE FOLLOWING TAXES IMPOSED
ON UTILITY CUSTOMERS DURING THE APPLICABLE PERIOD SHALL BE EXEMPT; GROSS
RECEIPTS TAX AND SALES TAX.
(2) EXEMPTION FROM SURCHARGES. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, RULE OR REGULATION TO THE CONTRARY, THE FOLLOWING SURCHARGES
IMPOSED ON UTILITY CUSTOMERS MADE DURING THE APPLICABLE PERIOD SHALL BE
EXEMPT; SYSTEM BENEFITS CHARGE, TEMPORARY STATE ASSESSMENT/INCREMENTAL
STATE ASSESSMENT CHARGE AND THE RENEWABLE PORTFOLIO STANDARD CHARGE.
(C) PRICE REDUCTION. DURING THE APPLICABLE PERIOD THE UTILITY COMPANY
SHALL REDUCE THE PRICE OF SERVICES BY THE AMOUNT OF TAX AND SURCHARGES
IN EXCESS THAT WOULD HAVE BEEN COLLECTED FROM THE CUSTOMER IF THE
SERVICE HAD NOT BEEN EXEMPT FROM TAX AND SURCHARGES PURSUANT TO SUBDIVI-
SION (B) OF THIS SECTION.
§ 3. The tax law is amended by adding a new section 47-b to read as
follows:
§ 47-B. GREEN ENERGY TAX HOLIDAY. NOTWITHSTANDING ANY RULE, LAW, REGU-
LATION, OR ORDER OF THE PUBLIC SERVICE COMMISSION TO THE CONTRARY, NO
TARIFF OR SURCHARGE ASSESSED FOR THE CONSTRUCTION OR IMPLEMENTATION OF
RENEWABLE ENERGY SYSTEMS, AS DEFINED BY SECTION SIXTY-SIX-P OF THE
PUBLIC SERVICE LAW, ELECTRIC VEHICLE READY INFRASTRUCTURE, AS DEFINED BY
SECTION 11-104 OF THE ENERGY LAW, OR ELECTRIC VEHICLE CHARGING STATIONS,
AS DEFINED BY SECTION 11-104 OF THE ENERGY LAW, MAY BE IMPOSED ON ANY
UTILITY RATEPAYER FOR A PERIOD OF TWO YEARS AFTER THE EFFECTIVE DATE OF
THIS ACT.
§ 4. The state finance law is amended by adding a new section 89-l to
read as follows:
§ 89-L. UTILITY BILL TAX AND SURCHARGE HOLIDAY. WITHIN FORTY-FIVE DAYS
AFTER THE APPLICABLE PERIOD AS DEFINED BY SUBDIVISION (A) OF SECTION
FORTY-SEVEN-A OF THE TAX LAW, THE COMPTROLLER, IN CONSULTATION WITH THE
DIRECTOR OF THE DIVISION OF THE BUDGET, SHALL TRANSFER FROM THE GENERAL
FUND AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE OTHERWISE BEEN DEPOS-
ITED IN SUCH ACCOUNTS IF THE EXEMPTIONS DEFINED IN PARAGRAPH ONE OF
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SUBDIVISION (B) OF SECTION FORTY-SEVEN-A OF THE TAX LAW HAD NOT BEEN
AUTHORIZED.
§ 5. Section 66 of the public service law is amended by adding a new
subdivision 19-a to read as follows:
19-A. THE COMMISSION SHALL PROMULGATE RULES AND REGULATIONS RELATING
TO AUDITS OF UTILITY CORPORATIONS AND ATTENDANCE AND PARTICIPATION OF
SUCH CORPORATIONS AT LEGISLATIVE HEARINGS. SUCH RULES AND REGULATIONS
SHALL PROVIDE THAT UTILITY CORPORATIONS MAY BE SUBJECT TO AUDITS BY
APPROPRIATE STATE AGENCIES, INCLUDING, BUT NOT LIMITED TO THE STATE
COMPTROLLER'S OFFICE AND THE DEPARTMENT OF FINANCIAL SERVICES, AND THAT
SUCH CORPORATIONS MAY BE SUBJECT TO STATE LEGISLATIVE HEARINGS REGARDING
RATE INCREASES AND ENERGY COSTS.
§ 6. Subdivision 12 of section 66 of the public service law is amended
by adding a new paragraph (n) to read as follows:
(N) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMIS-
SION SHALL BE AUTHORIZED TO RECONSIDER A RATE INCREASE THAT HAS BEEN
APPROVED AND IMPLEMENTED PURSUANT TO THE PROVISIONS OF THIS CHAPTER AND
TO REINSTATE THE RATE PRIOR TO SUCH INCREASE OR TO REDUCE THE AMOUNT OF
SUCH RATE INCREASE IF THE COMMISSION FINDS THAT SUCH PREVIOUSLY APPROVED
RATE INCREASE IS HAVING A LARGER FINANCIAL IMPACT ON CUSTOMERS THAN
ANTICIPATED WHEN APPROVING SUCH RATE INCREASE.
§ 7. The public service law is amended by adding a new section 67-b
to read as follows:
§ 67-B. SMART METERS; RIGHT OF REFUSAL. 1. IT SHALL BE THE RIGHT OF
EVERY CUSTOMER OF AN ELECTRIC AND/OR GAS CORPORATION TO DECLINE THE
PERMISSION OF SUCH CUSTOMER'S ELECTRIC AND/OR GAS CORPORATION TO: (A)
REPLACE AN EXISTING METER AT SUCH CUSTOMER'S PREMISES THAT IS ASSIGNED
TO SUCH CUSTOMER'S ACCOUNT WITH A SMART METER; OR (B) INSTALL ANY TWO-
WAY SMART METER DEVICE AT SUCH CUSTOMER'S PROPERTY WITHOUT SUCH CUSTOM-
ER'S CONSENT. NO CUSTOMER OF AN ELECTRIC AND/OR GAS CORPORATION SHALL BE
CHARGED A PENALTY, FEE, OR SERVICE CHARGE FOR EXERCISING SUCH RIGHT
PURSUANT TO THIS SECTION.
2. FOR THE PURPOSES OF THIS SECTION, "SMART METER" SHALL MEAN A
METERING DEVICE THAT ELECTRONICALLY MEASURES ENERGY USAGE BY A CUSTOMER
AND TRANSMITS SUCH USAGE DATA TO A UTILITY FOR THE PURPOSES OF BILLING
AND MONITORING.
§ 8. a. The public service commission shall conduct a study to
analyze the economic impact, if any, of the use of smart meters. Such
study shall analyze the correlation, if any, between the installation of
smart meters and rising energy usage and rates, and any discrepancies
therein.
b. Within one year of the effective date of this act, the commission
shall issue a report on its findings and any recommendations pursuant to
such study and deliver such report to the governor and the legislature.
The commission shall also publish such report on the commission's
website.
§ 9. Subdivision 1 of section 18-a of the public service law, as
amended by section 2 of part NN of chapter 59 of the laws of 2009, is
amended to read as follows:
[1.] All costs and expenses of the department and commission shall be
paid pursuant to appropriation BY THE LEGISLATURE on the certification
of the [chairman] CHAIR of the department and upon the audit and warrant
of the comptroller. The state treasury shall be reimbursed therefore by
payments to be made thereto from all moneys collected pursuant to this
chapter. The total of such costs and expenses shall be borne by the
public utility companies (including for the purposes of this section
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municipalities other than municipalities as defined in section eighty-
nine-l of this chapter), corporations (including the power authority of
the state of New York), and persons subject to the commission's regu-
lation, to be assessed in the manner provided in [subdivisions two,
three and four of this section and] section two hundred seventeen of
this chapter.
§ 10. Subdivisions 1-a, 2, 3, 4, 4-a, 4-b and 5 of section 18-a of the
public service law are REPEALED.
§ 11. Section 5 of the public service law is amended by adding a new
subdivision 7 to read as follows:
7. (A) THE COMMISSION, IN CONSULTATION WITH THE COMPTROLLER, SHALL
DEVELOP A FORMULA TO DETERMINE THE AVERAGE COST, ON A PER RATEPAYER
BASIS, TO COMPLY WITH THE PROVISIONS SET FORTH IN ARTICLE SEVENTY-FIVE
OF THE ENVIRONMENTAL CONSERVATION LAW, OR ANY OTHER RULE OR REGULATION
PROMULGATED BY A STATE AGENCY PRIOR TO THE EFFECTIVE DATE OF THIS SUBDI-
VISION, OR ANY SUBSEQUENT ACTION TAKEN THEREAFTER, TO MEET THE EMISSIONS
GOALS SET FORTH BY ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVA-
TION LAW.
(B) BEGINNING MARCH FIRST, TWO THOUSAND TWENTY-SIX, THE COMMISSION,
THIRTY DAYS PRIOR TO ISSUING ANY ORDER, DIRECTIVE, RULE, OR REGULATION,
SHALL DISCLOSE TO THE PUBLIC THROUGH PUBLIC NOTICE AND ON THEIR WEBSITE
THE COST, AS DETERMINED BY THE FORMULA DEVELOPED BY THE COMMISSION PER
THIS SUBDIVISION, OF ANY ORDER, DIRECTIVE, RULE, OR REGULATION ISSUED TO
COMPLY WITH ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW
BY THE COMMISSION.
§ 12. Section 606 of the tax law is amended by adding a new subsection
(bbb) to read as follows:
(BBB) RATEPAYER PROTECTION CREDIT. (1) ALLOWANCE OF CREDIT. AN INDI-
VIDUAL TAXPAYER WHOSE ANNUAL GROSS INCOME DOES NOT EXCEED TWO HUNDRED
FIFTY THOUSAND DOLLARS SHALL BE ALLOWED A CREDIT AGAINST TAX IMPOSED BY
THIS ARTICLE FOR THE COST OF THE IMPLEMENTATION OF ARTICLE SEVENTY-FIVE
OF THE ENVIRONMENTAL CONSERVATION LAW AS DETERMINED BY SUBDIVISION SEVEN
OF SECTION FIVE OF THE PUBLIC SERVICE LAW.
(2) CARRYOVER OF CREDIT AND REFUNDABILITY. IF THE AMOUNT OF THE CRED-
IT, AND CARRYOVERS OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION FOR
ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH
EXCESS AMOUNT MAY BE CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOW-
ING THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, IF
THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED
THE TAXPAYER'S TAX LIABILITY FOR SUCH YEAR, THE EXCESS SHALL BE TREATED
AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,
PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 13. The tax law is amended by adding a new section 187-s to read as
follows:
§ 187-S. RATEPAYER PROTECTION CREDIT. 1. ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT FOR THE COST OF THE IMPLEMENTATION OF
ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW AS DETERMINED
BY SUBDIVISION SEVEN OF SECTION FIVE OF THE PUBLIC SERVICE LAW AGAINST
THE TAXES IMPOSED BY SECTIONS ONE HUNDRED EIGHTY-THREE, ONE HUNDRED
EIGHTY-FOUR AND FORMER SECTION ONE HUNDRED EIGHTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT THE AMOUNT OF SUCH CREDIT ALLOWABLE AGAINST THE
TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE SHALL BE
THE EXCESS OF THE AMOUNT OF SUCH CREDIT OVER THE AMOUNT OF ANY CREDIT
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ALLOWED BY THIS SECTION AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED
EIGHTY-THREE OF THIS ARTICLE.
2. CARRYOVERS. IN NO EVENT SHALL THE CREDIT UNDER THIS SECTION BE
ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OR
FORMER SECTION ONE HUNDRED EIGHTY-SIX OF THIS ARTICLE. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
§ 14. This act shall take effect immediately; provided that the
provisions of section one of this act shall apply to the 2026 fiscal
year retroactively, and to fiscal years beginning on or after such
fiscal year; provided further, however, that section eight of this act
shall expire and be deemed repealed two years after such effective date.
