Amd S66-l, rpld sub 3 (a) sub (ii), c sub (iii), add SS66-n - 66-p, Pub Serv L; amd SS1005 & 1854, ren
SS1020-ii, 1020-jj & 1020-kk to be SS1020-jj, 1020-kk & 1020-ll, add SS1020-ii & 1854-e, Pub Auth L
Relates to establishing the clean energy fund to improve energy efficiency and provide for the development of clean energy technologies; relates to promoting the distribution of clean energy resources; requires the use of clean energy technologies by electric corporations and net energy metering for wind electric generating facilities; relates to requiring the NYS and Long Island power authorities to establish clean energy initiatives.
STATE OF NEW YORK
________________________________________________________________________
1938
2013-2014 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2013
___________
Introduced by M. of A. ENGLEBRIGHT, COOK, SCARBOROUGH, DINOWITZ, LENTOL,
AUBRY -- Multi-Sponsored by -- M. of A. BRENNAN, CAHILL, CLARK,
COLTON, CYMBROWITZ, GALEF, GOTTFRIED, HOOPER, JACOBS, V. LOPEZ,
MARKEY, MILLMAN, ORTIZ, PERRY, SWEENEY, WEISENBERG, WRIGHT -- 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 the clean energy fund to improve energy
efficiency and provide for the development of clean energy technolo-
gies; to amend the public service law, in relation to promoting the
distribution of clean energy resources, requiring the use of clean
energy technologies by electric corporations, and net energy metering
for wind electric generating facilities; to amend the public authori-
ties law, in relation to requiring the power authority of the state of
New York and the Long Island power authority to establish clean energy
initiatives; and to repeal certain provisions of the public service
law relating to non-residential customer-generators
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature finds and declares
2 that job creation; economic development; safe and reliable energy
3 services at an affordable price; reduction of energy cost burden for
4 low-income households, small businesses and farms; and the protection of
5 the health of the state's citizens and its environment are necessary
6 components of a sound energy policy. The legislature further finds that
7 the creation and preservation of jobs in New York, lowering energy
8 bills, protecting public health, and improving the conditions of our
9 parks and rivers can all be enhanced through policies and programs that
10 encourage energy efficiency and clean electricity generation.
11 § 2. The section heading and subdivisions 1 and 2 of section 66-1 of
12 the public service law, the section heading, paragraph (a) of subdivi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05393-01-3
A. 1938 2
1 sion 1 and subdivision 2 as amended and paragraph (c-1) of subdivision 1
2 as added by chapter 483 of the laws of 2008, subdivision 1 as amended by
3 chapter 721 of the laws of 2006 and paragraph (f) of subdivision 1 as
4 amended by chapter 7 of the laws of 2010, are amended to read as
5 follows:
6 Net energy metering for [residential, farm service and non-residen-
7 tial] wind electric generating systems. 1. Definitions. As used in this
8 section, the following terms shall have the following meanings:
9 (a) "Customer-generator" means a residential customer, farm service
10 customer [or non-residential] and/or small commercial or industrial
11 customer of an electric corporation, who owns or operates wind electric
12 generating equipment located and used at the customer's premises.
13 (b) "Residential customer-generator" means a customer who owns or
14 operates wind electric generating equipment located and used at his or
15 her primary residence.
16 (c) "Farm service customer-generator" means a customer of an electric
17 corporation who owns and operates wind electric generating equipment
18 located and used on land used in agricultural production as defined in
19 subdivision four of section three hundred one of the agriculture and
20 markets law, and which is also the location of the customer's primary
21 residence.
22 [(c-1) "Non-residential customer-generator" means a customer of an
23 electric corporation which owns or operates wind electric generating
24 equipment located and used at its premises.]
25 (d) "Net energy meter" means a meter that measures the reverse flow of
26 electricity to register the difference between the electricity supplied
27 by an electric corporation to the customer-generator and the electricity
28 provided to the corporation by that customer-generator.
29 (e) "Net energy metering" means the use of a net energy meter to meas-
30 ure, during the billing period applicable to a customer-generator, the
31 net amount of electricity supplied by an electric corporation or
32 provided to the corporation by a customer-generator.
33 (f) "Wind electric generating equipment" means one or more wind gener-
34 ators with a combined rated capacity of not more than twenty-five kilo-
35 watts for a residential customer-generator, and not more than five
36 hundred kilowatts for a farm service customer-generator, [and not more
37 than two thousand kilowatts for a non-residential customer-generator;]
38 that is manufactured, installed, and operated in accordance with appli-
39 cable government and industry standards, that is connected to the elec-
40 tric system and operated in parallel with an electric corporation's
41 transmission and distribution facilities, and that is operated in
42 compliance with any standards and requirements established under this
43 section.
44 (g) "Small commercial or industrial customer-generator" means any
45 business which employs up to one hundred employees.
46 2. Interconnection and net energy metering. An electric corporation
47 shall provide for the interconnection and net energy metering of wind
48 electric generating equipment owned or operated by a customer-generator;
49 provided that the customer-generator enters into a net energy metering
50 contract with the corporation or complies with the corporation's net
51 energy metering schedule and complies with standards and requirements
52 established under this section, and provided further that the intercon-
53 nection of wind electric generating equipment on parcels of land smaller
54 than five acres shall be contingent upon a local ordinance that specif-
55 ically addresses the siting of wind electric generating equipment, or a
56 variance, or other action by a local zoning authority. The customer-
A. 1938 3
1 generator shall be responsible for payment of one-half of the expense of
2 such interconnection for wind electric generating equipment with a rated
3 capacity of more than twenty-five kilowatts.
4 § 3. Subparagraph (ii) of paragraph (a) of subdivision 3 of section
5 66-l of the public service law is REPEALED.
6 § 4. Subparagraph (iii) of paragraph (c) of subdivision 3 of section
7 66-l of the public service law is REPEALED.
8 § 5. Subparagraph (ii) of paragraph (c) of subdivision 3 of section
9 66-l of the public service law, as amended by chapter 7 of the laws of
10 2010, is amended to read as follows:
11 (ii) in the case of a farm service customer-generator with a combined
12 rated capacity of not more than five hundred kilowatts, up to a maximum
13 of five thousand dollars[; and].
14 § 6. The public service law is amended by adding three new sections
15 66-n, 66-o and 66-p to read as follows:
16 § 66-n. Clean energy fund. 1. For purposes of this section:
17 (a) "Clean energy technologies" means electricity generation technolo-
18 gies that produce electricity using solar thermal energy, photovoltaics,
19 wind, fuel cells, geothermal, methane waste and sustainably managed
20 biomass and thermal energy produced by solar technologies and thermal
21 energy transfer from surface water, ground water or the earth. If after
22 the effective date of this section, new energy technologies emerge that
23 were unforeseeable at the time of such effective date the commissioner
24 of environmental conservation may designate such technologies as clean
25 energy technologies based upon a finding that the air, water, ecosystem,
26 public health and waste disposal impacts of such new technologies are
27 comparable to those of the clean energy technologies otherwise listed in
28 this paragraph. Any such designation shall only take place following a
29 complete opportunity for public review and comment consistent with the
30 state administrative procedure act.
31 (b) "Electric distribution company" means an electric corporation or,
32 if applicable, an affiliate of an electric corporation, or a munici-
33 pality engaged in the distribution of electricity directly to consumers.
34 (c) "Energy efficiency" means measures that help consumers of elec-
35 tricity use less energy (electricity, natural gas or other fuels) at
36 their premises while obtaining the same or more benefits from such ener-
37 gy use.
38 (d) "NYSERDA" means the New York state energy research and development
39 authority as designated pursuant to section eighteen hundred fifty-two
40 of the public authorities law.
41 (e) "Solid waste" shall have the same meaning as is ascribed to such
42 term pursuant to section 27-0501 of the environmental conservation law.
43 (f) "Sustainably managed biomass" means anaerobic digestion of any
44 waste or combustion of any of the following substances: captured land-
45 fill methane, secondary wood waste (which shall include only non-treated
46 wood waste and shall be limited to sawdust, wood chips and wood shavings
47 produced as by-products in the milling, processing or manufacturing of
48 wood products), woody agricultural waste and sustainable bio-crops. Such
49 term shall not include combustion or pyrolysis of solid wastes, timber,
50 forest floor sweepings and herbaceous crop residues, whether or not
51 energy is recovered therefrom.
52 2. (a) On and after July first, two thousand fourteen, the commission
53 shall continue the total level of investment in energy efficiency and
54 clean energy technologies required of electric distribution companies in
55 calendar year two thousand nine. The commission is further directed, as
56 a goal, to increase such investments over the next five years until such
A. 1938 4
1 investments reach the total levels having been invested by electric
2 distribution companies in the calendar year two thousand two. Mergers,
3 sales of assets, refinancing of debt and other potential cost savings
4 should be utilized to achieve this goal. The commission, in achieving
5 this goal, shall carefully take into account the benefits that invest-
6 ments in energy efficiency and clean energy technologies provide
7 consistent with the provisions of subdivision four of this section.
8 (b) The total level of investment established pursuant to this section
9 shall not be reduced prior to June thirtieth, two thousand twenty-four.
10 After such date, the commission shall make a determination as to whether
11 the clean energy investments should be increased, decreased or kept at
12 the same level. In making this determination, the commission shall
13 fully consider whether the objectives of lowering energy bills, increas-
14 ing economic development and improving the environment continue to
15 justify the clean energy investments. The commission shall provide all
16 interested parties an opportunity to review and comment on any proposed
17 adjustment pursuant to the state administrative procedure act.
18 3. Monies collected by each electric distribution company for the
19 purpose of such investments shall be transferred, on a monthly basis, to
20 the clean energy fund established and administered by the NYSERDA pursu-
21 ant to section eighteen hundred fifty-four-e of the public authorities
22 law.
23 4. Within twelve months of the effective date of this section, the
24 commission shall issue regulations granting a credit to any retail
25 customer account with peak demand greater than ten megawatts during the
26 prior year. The amount of the credit shall be based on qualifying
27 investments made by the customer after July first, two thousand fourteen
28 in energy efficiency and clean energy technologies and shall be equal to
29 fifty percent of the amount of the retail customer's qualifying invest-
30 ments in energy efficiency measures undertaken and eighty percent of the
31 amount of the retail customer's qualifying investments in clean energy
32 technologies and for which the customer has previously not received a
33 full credit. The total amount of credit in any one year shall not exceed
34 eighty percent of the total clean energy contribution required of the
35 customer in that year.
36 § 66-o. Clean distributed energy resources. It shall be the policy of
37 this state to promote the installation of clean distributed energy
38 resources.
39 1. For the purposes of this section:
40 (a) "Clean distributed energy resources" means energy efficiency meas-
41 ures and clean energy technologies installed at customer premises.
42 (b) "Clean energy technologies" shall have the same definition set
43 forth in section sixty-six-n of this article.
44 (c) "Exit fees" means a lump sum charge, a per kilowatt charge or per
45 kilowatt-hour charge associated with reduced electricity purchases or
46 electricity generated due to consumer utilization of clean energy tech-
47 nologies.
48 2. All customers receiving distribution services from an electric
49 corporation in the state shall be allowed to interconnect clean energy
50 technologies installed at their premises to the electric distribution
51 system. Within twelve months of the effective date of this section, the
52 commission shall issue regulations implementing such requirement,
53 including adoption of technical interconnection standards and intercon-
54 nection contracts which shall:
55 (a) provide for expeditious interconnection by the electric corpo-
56 ration;
A. 1938 5
1 (b) allow a maximum interconnect charge of thirty-five dollars per
2 kilowatt for each kilowatt greater than ten kilowatts for systems great-
3 er than ten kilowatts and less than one megawatt in rated capacity and,
4 for systems that are ten kilowatts or less, prohibit electric corpo-
5 rations from imposing any charge or requiring any payment for intercon-
6 nection;
7 (c) provide for uniform statewide technical interconnection require-
8 ments to ensure safety and reliability that are consistent with national
9 standards such as those promulgated by recognized national organiza-
10 tions, including the Institute for Electrical and Electronic Engineers
11 and the National Electric Code, except where the commission determines,
12 after a public hearing, that specific regional or statewide safety and
13 reliability conditions justify temporary deviation from the national
14 standards until consistency can be achieved; and
15 (d) ensure that interconnection contracts are consumer friendly, brief
16 and for systems under one hundred kilowatts; include no indemnification
17 requirements; and require not more than one hundred thousand dollars of
18 homeowners insurance coverage for residential customers and not more
19 than five hundred thousand dollars of insurance coverage for commercial
20 customers.
21 3. Within twelve months of the effective date of this section, the
22 commission shall issue regulations for each electric corporation's
23 distribution system that minimize the long-term costs of providing reli-
24 able distribution service, remove barriers to cost-effective investments
25 in clean distributed energy resources as alternatives to distribution
26 investments, and remove the linkage between the total energy distributed
27 and the recovery of distribution and other fixed costs. Within ninety
28 days of the effective date of this section, the commission shall require
29 each electric corporation to commence the collection of distribution
30 cost data necessary to accurately evaluate alternatives to traditional
31 infrastructure investments.
32 4. The first one thousand megawatts of clean energy technologies
33 installed at customer premises in the state, with a limit of one mega-
34 watt per customer account, shall be exempt from any exit fees or any
35 special meter fees charged by electric corporations. In addition, no
36 electric corporation shall levy a charge for backup or standby energy or
37 capacity to customers who install and use clean distributed energy
38 resources, rated at one megawatt or less, on their premises until the
39 commission completes a study accurately determining the cost of backup
40 service, an evaluation of the full range of benefits such technologies
41 provide to the transmission and distribution system and certifies that
42 each electric corporation has established tariffs that accurately credit
43 customers for these benefits.
44 § 66-p. Clean energy development. 1. For the purposes of this section,
45 "clean energy technologies" shall have the same definition set forth in
46 section sixty-six-n of this article.
47 2. Within twelve months of the effective date of this section, the
48 commission shall adopt clean energy regulations requiring each electric
49 corporation in the state to ensure that on or before July first, two
50 thousand fourteen, no less than one-half of one percent of the energy it
51 has supplied to each customer in the previous twelve month period was
52 generated using clean energy technologies. The commission shall increase
53 such requirement by one-half of one percent on July first each year
54 thereafter, until the amount of energy required from clean energy tech-
55 nologies reaches six percent. Once the amount of energy supplied to
56 customers from clean energy technologies reaches six percent, the
A. 1938 6
1 requirement shall be increased by one percent each year thereafter until
2 the amount of energy required from clean energy technologies reaches ten
3 percent or until such later date that the commission shall determine;
4 provided, however, that the commission shall not decrease the required
5 percentage at any time.
6 3. The commission shall review electricity products sold by each elec-
7 tric corporation in the state on a periodic basis to ensure that the
8 requirements set forth in subdivision two of this section are met. The
9 commission shall review its regulations and requirements for environ-
10 mental disclosure labels to ensure that information provided to custom-
11 ers concerning clean energy technologies is clear and understandable,
12 and consider whether it is appropriate to require all disclosure labels
13 to indicate the minimum percentage of energy required from clean energy
14 technologies pursuant to this section.
15 4. An electric corporation may satisfy the requirements of this
16 section by entering into conversion transactions established pursuant to
17 the commission's environmental disclosure program or such other trading
18 program that the commission may establish. The commission shall estab-
19 lish a compliance protocol that permits electric corporations to enter
20 into conversion transactions or purchase credits for energy supplied to
21 meet the clean energy requirement by electric corporations after the
22 effective date of this section and before July first, two thousand
23 sixteen. Such protocol shall allow banking of credits for electric ener-
24 gy from clean energy technologies supplied in excess of requirements for
25 a period of two years, and may allow compliance to be demonstrated with-
26 in three months of the end of the calendar year in order to allow for
27 compliance via conversion transactions or a trading program.
28 § 7. Section 1005 of the public authorities law is amended by adding a
29 new subdivision 24 to read as follows:
30 24. To establish a clean energy initiative to provide energy services
31 to qualified public participants for the installation of energy effi-
32 ciency measures and clean energy technologies.
33 (a) For the purposes of this subdivision:
34 (1) "Clean energy technologies" shall have the same definition set
35 forth in section sixty-six-n of the public service law.
36 (2) "Energy efficiency" shall have the same definition set forth in
37 section sixty-six-n of the public service law.
38 (3) "Qualified public participant" means a school district, city,
39 town, village, county, state agency, public benefit corporation or state
40 university.
41 (b) The authority shall invest in the clean energy initiative not less
42 than one hundred million dollars, on average per year, over a ten year
43 period starting July first, two thousand fourteen.
44 (c) The authority shall broadly disseminate information about the
45 clean energy initiative to qualified public participants.
46 (d) The authority shall provide energy services to qualified public
47 participants either directly or through a third-party provider.
48 (e) The authority shall require the qualified public participants to
49 reimburse the funds dispersed pursuant to this subdivision during a
50 period not to exceed ten years with savings in energy costs.
51 (f) In the case of school districts, energy services may include costs
52 not otherwise reimbursed pursuant to subdivision six of section thirty-
53 six hundred two of the education law.
54 (g) The authority shall, in consultation with the department of envi-
55 ronmental conservation, take advantage of any emission reduction credit
56 program that may be in place to help potential qualified public partic-
A. 1938 7
1 ipants maximize the economic and environmental benefits from partic-
2 ipation in the clean energy initiative.
3 (h) The authority shall establish and regularly convene an advisory
4 committee comprised of the chairman of the authority, the chairman of
5 the public service commission and the commissioner of environmental
6 conservation or their designees, serving as ex officio members; and the
7 chairman of the authority shall appoint one representative from each of
8 the following customer classifications: residential, low-income residen-
9 tial, small commercial, large commercial/industrial, agricultural, and
10 consumers residing in load pockets; one individual representing the
11 electric distribution companies; one individual representing the energy
12 service companies; and one individual representing each of the following
13 areas of expertise: environmental protection, clean energy technologies
14 and energy efficiency. The appointed members of the committee shall have
15 no direct financial interest in the allocation of the monies in the
16 clean energy fund. The authority, in consultation with the advisory
17 committee, shall establish evaluation protocols to judge the success of
18 the clean energy fund, and shall periodically contract for independent
19 review of fund management.
20 § 8. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
21 law, as renumbered by chapter 388 of the laws of 2011, are renumbered
22 sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
23 to read as follows:
24 § 1020-ii. Clean energy initiative. The authority shall comply with
25 the provisions of this section for the purpose of lowering consumer
26 energy bills, enhancing the reliability of the system, encouraging ener-
27 gy efficiency, supporting the development of clean energy technologies
28 such as wind, solar and fuel cells, and reducing harmful impacts of
29 electricity generation and consumption on public health and sensitive
30 ecosystems.
31 1. Definitions. For purposes of this section:
32 (a) "Clean distributed energy resources" shall have the same defi-
33 nition set forth in section sixty-six-o of the public service law.
34 (b) "Clean energy technologies" shall have the same definition set
35 forth in section sixty-six-n of the public service law.
36 (c) "Customer-generator" shall have the same definition set forth in
37 sections sixty-six-j and sixty-six-l of the public service law.
38 (d) "Energy efficiency" shall have the same definition set forth in
39 section sixty-six-n of the public service law.
40 (e) "Exit fees" shall have the same definition set forth in section
41 sixty-six-o of the public service law.
42 (f) "Net energy meter" shall have the same definition set forth in
43 sections sixty-six-j and sixty-six-l of the public service law.
44 (g) "Net energy metering" shall have the same definition set forth in
45 sections sixty-six-j and sixty-six-l of the public service law.
46 (h) "Solar electric generating equipment" shall have the same defi-
47 nition set forth in section sixty-six-j of the public service law.
48 (i) "Wind electric generating equipment" shall have the same defi-
49 nition set forth in section sixty-six-l of the public service law.
50 2. Long Island clean energy fund. (a) On and after July first, two
51 thousand fourteen, the authority shall continue the level of investment
52 in energy efficiency and clean technologies invested in calendar year
53 two thousand eight, and shall establish a Long Island clean energy fund
54 into which such investment shall be placed. The investment established
55 pursuant to this section shall not be reduced prior to June thirtieth,
56 two thousand twenty-four. After such date, the authority shall make a
A. 1938 8
1 determination as to whether the clean energy investment should be
2 increased, decreased or kept at the same level. In making this determi-
3 nation, the authority shall fully consider whether the objectives of
4 lowering energy bills, increasing economic development and improving the
5 environment continue to justify the clean energy contribution. The
6 authority shall provide all interested parties an opportunity to review
7 and comment on any proposed adjustment pursuant to the state administra-
8 tive procedure act.
9 (b) The authority shall invest such monies in the Long Island clean
10 energy fund in accordance with the following provisions:
11 (i) seventy percent of such monies shall be invested in energy effi-
12 ciency for consumers in the following categories: residential, low-in-
13 come residential, commercial, industrial, agricultural, educational and
14 health care. Thirty percent of the energy efficiency investments
15 required pursuant to this paragraph shall be targeted for low-income
16 residential and multi-family energy efficiency programs and shall be
17 delivered in conjunction with the statewide low-income weatherization
18 assistance program network of local providers.
19 (ii) thirty percent of such monies shall be invested in clean energy
20 technologies. These funds shall be utilized by the authority, for among
21 other things, to support:
22 (A) research, development and demonstration of clean energy technolo-
23 gies;
24 (B) the installation, at customers' premises, of at least sixty mega-
25 watts of clean energy technologies in its service territory through a
26 buydown program, including installations at farms, and in low-income
27 residential and multi-family buildings. On and after January first, two
28 thousand fifteen, the authority shall implement a buydown program pursu-
29 ant to the terms of this subparagraph. The incentive level offered by
30 this program, in combination with any other federal, state or local
31 incentive that the customer receives, shall be sixty percent of the
32 installed cost of each technology for the first eight megawatts phase,
33 and, in each of the following four phases of ten, twelve, fourteen and
34 sixteen megawatts, the total incentive shall be fifty, forty, thirty,
35 and twenty percent of such installed cost, provided that at no time
36 shall the total incentive for any project exceed three dollars per watt;
37 and
38 (C) the development of clean energy technologies in its service terri-
39 tory through a competitive auction or solicitation program for the
40 purpose of supplying electricity to consumers through the transmission
41 and distribution system. Within six months of the effective date of this
42 section, the authority shall establish a competitive program to provide
43 per-kilowatt-hour incentives to bidders that provide substantial proof
44 of intent and ability to build clean energy technology projects and
45 require the lowest amount of incentive over a period of five years.
46 Following the establishment of this program, the authority shall issue a
47 request for letters of intent to bid every six months until all monies
48 allocated to clean energy technologies have been invested. In determin-
49 ing the amount of incentive or grant awarded under the auction or solic-
50 itation process in this clause, the authority shall take into consider-
51 ation any revenues likely to be received by the recipient under the
52 clean energy requirement established by subdivision four of this
53 section.
54 (iii) all monies collected from the clean energy contribution shall be
55 fully invested. However, the percent allocations pursuant to subpara-
A. 1938 9
1 graphs (i) and (ii) of this paragraph may be achieved on an average
2 basis over a rolling period of up to five years.
3 3. Clean distributed energy resources. (a) All customers receiving
4 distribution services from the authority shall be allowed to intercon-
5 nect clean energy technologies installed at their premises to the elec-
6 tric distribution system. Within twelve months of the effective date of
7 this section, the authority shall issue regulations implementing this
8 requirement, including adoption of technical interconnection standards
9 and interconnection contracts which shall:
10 (i) provide for expeditious interconnection;
11 (ii) allow a maximum interconnect charge of thirty-five dollars per
12 kilowatt for each kilowatt greater than ten kilowatts for systems great-
13 er than ten kilowatts and less than one hundred twenty-five kilowatts in
14 rated capacity and, for systems that are ten kilowatts or less, prohibit
15 any charge or payment for interconnection;
16 (iii) provide for uniform technical interconnection requirements to
17 ensure safety and reliability that are consistent to the maximum extent
18 practicable with statewide standards and national standards such as
19 those promulgated by recognized national organizations including the
20 Institute for Electrical and Electronic Engineers and the National Elec-
21 tric Code, except where the authority determines, after a public hear-
22 ing, that specific regional or statewide safety and reliability condi-
23 tions justify temporary deviation from the national standards until
24 consistency can be achieved; and
25 (iv) ensure that interconnection contracts are consumer friendly,
26 brief and for systems under one hundred twenty-five kilowatts; include
27 no indemnification requirements; and require no more than one hundred
28 thousand dollars of homeowners insurance coverage for residential
29 customers and no more than five hundred thousand dollars of insurance
30 coverage for commercial customers.
31 (b) Within twelve months of the effective date of this section, the
32 authority shall issue regulations for its distribution system that mini-
33 mize the long-term costs of providing reliable distribution service,
34 remove barriers to cost-effective investments in clean distributed ener-
35 gy resources as alternatives to distribution investments, and remove the
36 linkage between the total energy distributed and the recovery of
37 distribution and other fixed costs. Within ninety days of the effective
38 date of this section, the authority shall commence the collection of
39 distribution cost data necessary to accurately evaluate alternatives to
40 traditional infrastructure investments.
41 (c) The first two hundred megawatts of clean energy technologies
42 installed at a customer premises, with a limit of one hundred twenty-
43 five kilowatts per customer account, shall be exempt from any exit fees
44 or any special meter fees charged by the authority. In addition, the
45 authority shall not levy a charge for backup or standby energy or capac-
46 ity to customers who install and use clean distributed energy resources,
47 rated at one hundred twenty-five kilowatts or less, on their premises
48 until the authority completes a study accurately determining the cost of
49 backup service, an evaluation of the full range of benefits such tech-
50 nologies provide to the transmission and distribution system and accu-
51 rately credit customers for these benefits.
52 4. Clean energy development. (a) Within twelve months of the effective
53 date of this section, the authority shall adopt a clean energy require-
54 ment that ensures that, not later than July first, two thousand sixteen,
55 no less than one-half of one percent of the energy it has supplied to
56 each customer in the previous twelve month period was generated using
A. 1938 10
1 clean energy technologies. The authority shall increase the clean energy
2 requirement by one-half of one percent annually on July first each year
3 thereafter, until the amount of energy required from clean energy tech-
4 nologies reaches six percent. Once the amount of energy supplied to
5 customers from clean energy technologies reaches six percent, the
6 requirement shall be increased by one percent each year thereafter until
7 the amount of energy required from clean energy technologies reaches ten
8 percent or such later date as the authority shall determine; provided,
9 however, that the authority shall not decrease the required percentage
10 at any time.
11 (b) Not later than January first, two thousand fourteen, the authority
12 shall establish an environmental disclosure program consistent with the
13 public service commission's environmental disclosure program. In imple-
14 menting the clean energy requirement, the authority shall ensure that
15 information provided to customers concerning clean energy technologies
16 is clear and understandable, and shall consider whether it is appropri-
17 ate to indicate on all disclosure labels the minimum percentage of ener-
18 gy required from clean energy technologies pursuant to this section.
19 (c) The authority may satisfy the requirements of this subdivision by
20 entering into conversion transactions established pursuant to the public
21 service commission's environmental disclosure program or such other
22 trading program that the authority may establish or choose to partic-
23 ipate in. The authority shall be able to bank credits for clean energy
24 supplied in excess of requirements for a period of two years and may
25 demonstrate compliance within three months of the end of the calendar
26 year in order to allow for compliance via conversion transactions or a
27 trading program.
28 5. Advisory panel. The authority shall establish and regularly convene
29 an advisory committee comprised of the chairman of the authority serving
30 as an ex officio member; seven members appointed by the authority one
31 member to be appointed to be representative of each of the following
32 customer classifications: residential, low-income residential, small
33 commercial, large commercial/industrial, agricultural, and consumers
34 residing in load pockets; and four members appointed by the authority to
35 represent each of the following areas of expertise: environmental
36 protection, clean energy technologies, and energy efficiency. The
37 appointed members of the committee shall have no direct financial inter-
38 est in the allocation of the monies from the clean energy contribution.
39 The authority, in consultation with the advisory committee, shall estab-
40 lish evaluation protocols to judge the success of the initiative, and
41 shall periodically contract for independent review of fund management.
42 6. Reporting. On or before July first, two thousand fifteen and annu-
43 ally thereafter, the authority shall issue a report to the governor, the
44 temporary president of the senate and the speaker of the assembly iden-
45 tifying the budget balance, projected revenues and expenditures, program
46 achievements and all other relevant information relating to the imple-
47 mentation of this section.
48 § 9. Section 1854 of the public authorities law is amended by adding a
49 new subdivision 20 to read as follows:
50 20. To administer the clean energy fund established pursuant to
51 section eighteen hundred fifty-four-e of this title.
52 § 10. The public authorities law is amended by adding a new section
53 1854-e to read as follows:
54 § 1854-e. Clean energy fund. 1. For purposes of this section:
55 (a) "Clean energy technologies" shall have the same definition set
56 forth in section sixty-six-n of the public service law.
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1 (b) "Energy efficiency" shall have the same definition set forth in
2 section sixty-six-n of the public service law.
3 (c) "Load pocket" means a geographic area in which electricity demand
4 sometimes exceeds local generation capability and in which there is an
5 electricity import limitation as a result of transmission constraints.
6 2. The authority shall establish a clean energy fund for monies
7 received from electric distribution companies pursuant to section
8 sixty-six-n of the public service law. The authority shall invest such
9 funds in accordance with the following provisions:
10 (a) Seventy percent of such monies shall be invested in energy effi-
11 ciency for consumers in the following categories: residential, low-in-
12 come, residential, commercial, industrial, agricultural, educational and
13 health care. Thirty percent of the energy efficiency investments
14 required pursuant to this paragraph shall be targeted for low-income
15 residential and multi-family energy efficiency programs and shall be
16 delivered in conjunction with the statewide low-income weatherization
17 assistance program network of local providers.
18 (b) thirty percent of such monies shall be invested in clean energy
19 technologies. These funds shall be utilized by the authority, for among
20 other things, to support:
21 (i) research, development and demonstration of clean energy technolo-
22 gies;
23 (ii) the installation, at customers' premises, of at least three
24 hundred megawatts of clean energy technologies in the state through a
25 buydown program, including installations at farms, and in low-income
26 residential and multi-family buildings. On and after January first, two
27 thousand fifteen, the authority shall implement a program pursuant to
28 the terms of this subparagraph. The incentive level offered by this
29 program, in combination with any other federal, state or local incentive
30 that the customer receives, shall be sixty percent of the installed cost
31 of each technology for the first forty megawatts phase, and, in each of
32 the following four phases of fifty, sixty, seventy, and eighty mega-
33 watts, the total incentive shall be fifty, forty, thirty, and twenty
34 percent of such installed cost, provided that at no time shall the total
35 incentive for any project exceed three dollars per watt; and
36 (iii) the development of clean energy technologies in the state
37 through a competitive auction or solicitation program at the wholesale
38 level for the purpose of supplying electricity to consumers through the
39 transmission and distribution system. Within six months of the effective
40 date of this section, the authority shall establish a competitive
41 program to provide per-kilowatt-hour incentives to bidders that provide
42 substantial proof of intent and ability to build clean energy technology
43 projects and require the lowest amount of incentive over a period of
44 five years. Following the establishment of this program, the authority
45 shall issue a request for letters of intent to bid every six months
46 until all monies allocated to clean energy technologies have been
47 invested. In determining the amount of incentive or grant awarded under
48 the auction or solicitation process in this subparagraph, the authority
49 shall take into consideration any revenues likely to be received by the
50 recipient under the clean energy requirement established by section
51 sixty-six-p of the public service law.
52 (c) twenty-five percent of the sum of monies allocated in paragraphs
53 (a) and (b) of this subdivision shall be made available to develop
54 targeted programs (utilizing energy efficiency, low-income energy effi-
55 ciency, clean energy technologies and air conditioning equipment that
56 utilizes steam or natural gas) that assist electric distribution compa-
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1 nies and distributed resource providers to address the needs of load
2 pockets that have sustained out-of-merit order dispatch for reliability
3 reasons, provided that the electric distribution company funds at least
4 thirty percent of the cost of such targeted programs.
5 (d) all monies in the fund shall be invested. However, the percent
6 allocations in paragraphs (a), (b) and (c) of this subdivision may be
7 achieved on an average basis over a rolling period of up to five years.
8 3. The authority shall establish and regularly convene an advisory
9 committee comprised of the chairman of the authority, the chairman of
10 the public service commission and the commissioner of environmental
11 conservation or their designees, serving as ex officio members; and the
12 chairman of the authority shall appoint one representative from each of
13 the following customer classifications: residential, low-income residen-
14 tial, small commercial, large commercial/industrial, agricultural, and
15 consumers residing in load pockets; one individual representing the
16 electric distribution companies; one individual representing the energy
17 service companies; and one individual representing each of the following
18 areas of expertise: environmental protection, clean energy technologies
19 and energy efficiency. The appointed members of the committee shall have
20 no direct financial interest in the allocation of the monies in the
21 clean energy fund. The authority, in consultation with the advisory
22 committee, shall establish evaluation protocols to judge the success of
23 the clean energy fund, and shall periodically contract for independent
24 review of fund management.
25 4. On or before July first, two thousand fifteen and annually there-
26 after, the authority shall issue a report to the public service commis-
27 sion, the governor, the temporary president of the senate and the speak-
28 er of the assembly identifying the clean energy fund balance, projected
29 revenues and expenditures, program achievements, and all other relevant
30 information.
31 § 11. Severability. If any clause, sentence, paragraph, section or
32 part of this act shall be adjudged by any court of competent jurisdic-
33 tion to be invalid, such judgment shall not affect, impair or invalidate
34 the remainder thereof, but shall be confined in its operation to the
35 clause, sentence, paragraph, section or part thereof directly involved
36 in the controversy in which such judgment shall have been rendered.
37 § 12. This act shall take effect immediately, provided that sections
38 two and three of this act shall apply to taxable years beginning on or
39 after January 1, 2015.
