A01938 Summary:

BILL NO    A01938 

SAME AS    No same as 

SPONSOR    Englebright (MS)

COSPNSR    Cook, Scarborough, Dinowitz, Lentol, Aubry, Schimel

MLTSPNSR   Brennan, Cahill, Clark, Colton, Cymbrowitz, Galef, Gottfried, Hooper,
           Jacobs, Markey, Millman, Ortiz, Perry, Sweeney, Weisenberg, Wright

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.
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A01938 Actions:

BILL NO    A01938 

01/09/2013 referred to energy
01/08/2014 referred to energy
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A01938 Votes:

There are no votes for this bill in this legislative session.
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A01938 Text:



 
                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.

        A. 1938                            11
 
     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-

        A. 1938                            12
 

     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.
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