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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1938
SPONSOR: Englebright (MS) TITLE OF BILL: 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 ener-
gy technologies; to amend the public service law, in relation to promot-
ing 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
authorities 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
PURPOSE OR GENERAL IDEA OF BILL:
The Clean Energy Development Act proposes a comprehensive state energy
policy that promotes energy efficiency and clean generation technologies
such as solar, wind, fuel cells and biomass in a manner that balances
the State's environmental and economic interests.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 contains the legislative findings.
Section 2 amends the Public Service Law by adding a new Section 66-k.
This section requires the Public Service Commission on the first day of
July 2001 and every year thereafter to continue the level of investment
in energy efficiency and renewals invested in calendar year 2000. This
provision, therefor, continues at its current level a sunsetting invest-
ment provision of the commission. The commission is further directed, as
a goal, to increase these investments over the next five years until
they reach the levels having been invested by electric utilities in the
calendar year 1995. Mergers, sales of assets, refinancing of debt and
other potential cost savings should be utilized to achieve this goal.
The commission, in achieving this goal, shall carefully take into
account the benefits that investments in energy efficiency and clean
technologies provide.
Such funds generated from such levels of investment will be transferred
to a clean energy fund administered by NYSERDA to support clean energy
technologies, defined to include technologies that generate electricity
using solar thermal energy, photovoltaics, wind, fuel cells, geothermal,
methane waste and sustainably managed biomass. Large customers are
permitted to self-administer a substantial portion of the funds they
contribute for qualifying energy efficiency and clean energy technology
investments.
Section 3 amends section 1854 of the Public Authorities Law by adding a
new subdivision 18 to provide for the administration of the Clean Energy
Fund by the New York State Energy and Research Development Authority
("NYSERDA").
Section 4 amends the Public Authorities Law by adding a section 1854-e
to require NYSERDA to establish a "Clean Energy Fund" for monies
received from electric companies pursuant to section 66-k of the Public
Service Law. NYSERDA is required to invest 70% of the fund in energy
efficiency programs, 30% of which shall be targeted to low-income
customers (in conjunction with the statewide Low-Income Weatherization
Assistance Program) and the remainder of which shall address the resi-
dential, commercial, industrial, agricultural, educational and health
care sectors.
Section 4 also requires NYSERDA to invest 30% of the fund to research,
development and commercialization of clean energy technologies, includ-
ing a buydown program to support the installation of at least three
hundred megawatts of clean energy technologies such as photovoltaics,
wind and fuel cells and sustainable biomass in New York State. The fund
also will support a competitive auction for per-kilowatt-hour incentives
for clean generation technologies.
Section 4 also requires NYSERDA to make available twenty-five percent of
the efficiency and clean energy technology funds to assist electric
distribution companies with the special energy concerns of load pockets
in which the transmission and distribution of electricity is
constrained. NYSERDA may invest in energy efficiency, clean energy tech-
nologies, or cooling systems that utilize steam or natural gas to
address load pocket concerns, provided that the electric distribution
company shares at least thirty percent of the cost.
NYSERDA is permitted to meet the percentage allocations specified above
on a rolling average basis over a period of up to five years.
Section 4 also requires NYSERDA to establish an advisory committee.
Section 5 amends § 1005 of the Public Authorities Law by adding subdivi-
sion 15 entitled "Clean Energy Initiative." The new subdivision requires
the New York Power Authority ("NYPA") to provide energy services to
qualified public participants, including schools, local governments and
other public entities, for the installation of energy efficiency meas-
ures and clean energy technologies. NYPA would be required to invest an
average of one hundred million dollars per year over a period of ten
years, to be reimbursed over a period not to exceed ten years.
Section 6 amends the Public Service Law by adding section 66-1: "Fair
Competition" to promote fair competition in the electric industry for
"clean distributed energy resources," defined to include energy effi-
ciency and clean energy technologies located on customer premises.
Section 6 requires the Public Service Commission, within six months of
the effective date of the act, to issue regulations (i) requiring each
electric distribution company in the State to permit all customers to
interconnect clean distributed energy resources to the distribution grid
and (ii) adopting technical interconnections standards and model inter-
connections contracts. This section also limits the interconnection fees
and requirements an electric distribution company can impose on custom-
ers. This section also requires the Public Service Commission, within
twelve months of the effective date of the act, to issue regulations for
each electric corporation's distribution system that minimize the long-
term costs of providing distribution service, remove barriers to cost-
effective investments in clean distributed energy resources as alterna-
tives to distribution plan investments and remove the linkage between
the total energy delivered and the recovery of distribution and other
fixed costs.
Section 7 amends the Public Service Law by adding a § 66-m "Clean Energy
Development," requiring the Public Service Commission to require all
retail electric service providers to provide a minimum percentage of
electricity generated by clean energy technologies to each customer,
beginning at one-half of one percent and increasing by one-half of one
percent each year until it reaches six percent, and by one percent each
year thereafter until it reaches ten percent. If unable to meet this
requirement, retail suppliers may contribute to the Clean Energy Fund
2.5 cents for each kilowatt-hour of clean energy below the requirement.
Three years later and every three years thereafter the contribution
declines by one-half cent for each kilowatt-hour until it reaches one-
half cent/kWh.
Section 8 amends § 66-j of the Public Service law to include small wind
generators of not more than 100 kilowatts in the state's existing net
metering law and to expand the existing cap on overall net metering
generation in the state to two-tenths percent of each utility's electric
demand for the year 1996.
Section 9 of the bill extends the requirements of this article to the
Long Island Power Authority by amending section 1020 of the Public
Authorities Law.
Section 10 contains the severability provision.
Section 11 provides that this act take effect immediately.
EXISTING LAW:
Public Service Law § 66 details the general powers delegated to the
Public Service Commission regarding gas and electricity regulation.
Section 1854 of the Public Authorities Law establishes the authority of
NYSERDA and defines the purposes of the authority to develop and imple-
ment new energy technologies consistent with "economic, social and envi-
ronmental objectives." NYSERDA must develop and encourage energy conser-
vation to "promote," "develop" and "encourage and assist" energy
projects and thereby advance job opportunity, general prosperity and
economic welfare for New York state residents. Section 1005 of the
Public Authorities Law establishes the powers and duties of the New York
Power Authority. Section 1020 of the Public Authorities Law creates
LIPA and establishes that the Authority "shall utilize to the fullest
extent practicable, all economical means of conservation, and technolo-
gies that rely on renewable resources, cogeneration and improvements in
energy efficiency which will benefit the interests of the ratepayers of
the service area."
JUSTIFICATION:
The Clean Energy Development Act will make available to all New Yorkers,
programs in energy efficiency and clean energy generation such as solar,
wind and fuel cells. Increasing support for clean energy technologies
will help consumers reduce energy bills (especially low-income house-
holds, small businesses and farms), create jobs, attract, retain and
support emerging clean energy technologies of the future to New York,
protect public health by reducing pollutants that cause asthma and other
respiratory illnesses, and reduce harmful impacts of electrical gener-
ation and consumption on our parks and rivers. Passage of this bill
would mean that New York could once again claim a leadership position
with respect to energy efficiency. Passage of this bill would be an
important step towards addressing this State's growing environmental and
energy concerns.
PRIOR LEGISLATIVE HISTORY:
A.4084 - 2002 - referred to energy
A.8506 - 2000 - referred to energy
A.382 - 2003 - referred to energy
A.382 - 2004 - referred to energy
2005-06 A.2662 referred to energy
2007-08 A.910 referred to energy
2009-10 A2159 referred to energy
2011-12 A.3668 Energy
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: This act shall take effect immediately.
