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A 10635

Enacts the "affordable clean energy (ACE) act"

2025 Regular Session Introduced by Harry Bronson and 7 co-sponsors

The bill accelerates renewable energy deployment by streamlining approvals, directing NYPA to advance priority transmission projects, and excluding renewable PILOT payments from pr

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Bill Summary · A 10635

Overview

  • Bill: A 10635 (Affordable Clean Energy Act - ACE Act)
  • Session: 2025-2026 (New York)
  • Introduced by: Assemblymember Bronson (with several co-sponsors)
  • Committee: Energy
  • Purpose: Implement major components to advance affordable clean energy by (a) exempting certain renewable energy systems from specific traditional energy facility requirements, (b) directing the New York Power Authority (NYPA) to propose priority transmission projects to address high-need grid areas, and (c) adjusting property tax cap calculations to exclude payments in lieu of taxes (PILOT) revenue from renewable energy projects.

What the bill aims to do

  • Streamline and accelerate deployment of renewable energy and related infrastructure.
  • Ensure transmission capacity keeps pace with renewable energy development, particularly in areas with high interconnection constraints.
  • Stabilize local fiscal planning by excluding PILOT revenue from property tax cap calculations for renewable energy projects, potentially broadening local tax certainty.

Key provisions by Part

Part A: Public Service Law reforms to renewable energy systems

  • Exemption expansion: Renewable energy systems (and energy storage systems not paired with generation) are exempt from certain traditional certificate-of-need processes for gas/electric plants.
  • Certificates of public convenience and necessity (CPCN): Gas and electric corporations must obtain CPCNs before constructing new plants (with hearing-based determinations on public convenience and feasibility).
  • Local government authority: Municipalities retain a role, requiring consent of proper authorities before franchise rights are exercised; new CPCN process can be revisited after refusal (with a one-year waiting period).
  • Implications: Potentially faster approval for renewable energy projects and storage, while maintaining a framework for oversight of conventional gas/electric facilities.

Part B: Priority transmission projects and NYPA authority

  • Direction to NYPA: NYPA should propose at least two priority transmission projects within nine months of enactment (to address highest-need areas on the bulk transmission system and to facilitate more renewable interconnections).
  • Priority projects: One project must address high-need locations identified by NYISO in its 20-year outlook; the other should target areas currently underserved by the grid to unlock renewable energy zones.
  • Process and partnerships: NYPA must conduct a public process to solicit potential co-participants; can undertake projects alone or with partners and may enter necessary agreements to complete projects timely.
  • Private sector participation: For priority projects not within NYPA’s existing rights of way, private sector participation via competitive bidding may be used, though the act clarifies that generation lead lines or upgrades to NYPA’s own assets are excluded from this competitive bid concept.
  • Community solar financing: Establish a threshold for non-affordability of local system upgrades. If interconnection costs exceed this threshold, NYPA would provide low-interest financing to cover upgrade costs above the threshold for developers of community solar projects.
  • Overall intent: Accelerate large-scale transmission investments to support CLCPA targets and expand renewable energy deployment.

Part C: PILOT revenue and tax cap adjustments

  • Local government and education law: Adjust PILOT-related language to exempt renewable energy PILOT receipts from calculations for property tax caps.
  • Specific changes:
    • General municipal law: PILOT receipts receivable in the prior year can be added; PILOT receipts for renewable energy projects are excluded.
    • Education law: Similar treatment for school districts (add prior-year PILOT receipts; exclude renewable energy PILOT receipts from calculations for the coming year).
  • Effective dates: Immediate for Part C, with application timing tied to the 2026-2027 budget cycle for school districts and 2026 fiscal year for local governments.
  • Purpose: Improve fiscal predictability for localities hosting renewable energy projects, potentially enabling more investment by reducing tax-related pressure from PILOT components.

Who would be affected

  • Utilities (gas and electric corporations): Subject to CPCN and permit processes, with potential shifts in timelines for renewable energy deployment.
  • Renewable energy developers (including community solar projects): Potentially faster project approvals, new financing options for local interconnection upgrades, and clarified PILOT tax treatment.
  • New York Power Authority (NYPA) and NYISO: Responsibility to identify, propose, and potentially develop priority transmission projects; engage in public processes and possible private-sector partnerships.
  • Local governments and school districts: Changes to PILOT treatment for renewable energy projects, affecting property tax cap calculations and budgeting.
  • Ratepayers and the broader public: Indirect impact through faster renewable deployment, improved grid reliability, and potentially more predictable local fiscal planning.

Procedural and timeline aspects

  • Part A: Immediate effect; provisions take effect upon enactment. Reforms apply to future project approvals and CPCN processes.
  • Part B: NYPA to propose at least two priority transmission projects within nine months of enactment; ongoing public process for participation and potential private partnerships.
  • Part C: Immediate effect for PILOT adjustments; school district PILOT provisions apply to the 2026-2027 budget cycle; local government PILOT provisions apply to the 2026 fiscal year.
  • General: The act contains severability and a general effective date framework; specific portions have separate effective dates as noted.

Practical impact and considerations

  • Acceleration of renewable energy deployment through streamlined approvals and targeted transmission enhancements.
  • Potentially increased private-sector involvement in major transmission projects.
  • Financial predictability for localities hosting renewable energy projects, potentially encouraging investment and deployment.
  • Ongoing need to monitor environmental, land-use, and community engagement factors associated with expedited transmission development.

If you’d like, I can provide a section-by-section comparison with current law, or a quick FAQ extracting the most likely questions from stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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