Add S66-m, Pub Serv L; amd S1005, ren SS1020-hh - 1020-jj to be SS1020-ii - 1020-kk, add S1020-hh, Pub Auth L
Creates the renewable energy development and jobs act of 2011 authorizing renewable energy credits for the New York power authority and the Long Island power authority.
STATE OF NEW YORK
________________________________________________________________________
6122
2011-2012 Regular Sessions
IN ASSEMBLY
March 8, 2011
___________
Introduced by M. of A. HEVESI -- 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 the creation of renewable energy credits for retail
electric providers, the New York power authority and the Long Island
power authority
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "New York
2 renewable energy development and jobs act of 2011".
3 § 2. The public service law is amended by adding a new section 66-m to
4 read as follows:
5 § 66-m. Procurement of renewable energy credits. 1. As used in this
6 section:
7 (a) "Alternative compliance payment" means a payment of a defined
8 dollar amount per megawatt-hour, as established by the commission, that
9 a retail electric supplier shall submit to the commission in order to
10 comply with its annual obligations established in subdivision two of
11 this section.
12 (b) "Distributed renewable energy resource systems" means small-scale
13 power generation technologies in the range of one kilowatt to ten thou-
14 sand kilowatts used to provide an alternative to or an enhancement of
15 the traditional electric power system, using renewable energy resources.
16 (c) "Distributed renewable energy generation" means qualified renewa-
17 ble energy generation produced by a qualified renewable energy system
18 that is interconnected to the customer's side or utility distribution
19 company meter.
20 (d) "Electric distribution company" means an investor-owned utility
21 that distributes electricity within New York state.
22 (e) "New energy technologies" means all methods used to produce,
23 distribute, conserve and store energy by methods not in common commer-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00698-03-1
A. 6122 2
1 cial use, with emphasis on renewable energy sources including but not
2 limited to solar, wind, bioconversion and solid waste.
3 (f) "Power purchase agreement" means an agreement, for a minimum of
4 fifteen years, for the purchase of renewable energy credits from an
5 owner of a qualified renewable energy system.
6 (g) "Qualifying owner" means the owner of a qualifying renewable ener-
7 gy system that is also a:
8 (i) resident of New York state;
9 (ii) limited liability company organized under the New York state
10 limited liability company law and made up of a majority of members who
11 are New York state residents; or
12 (iii) New York not-for-profit organization organized under the New
13 York state not-for-profit law.
14 (h) "Qualified renewable energy generation" means the electric energy
15 measure in kilowatt hours produced from a qualified renewable energy
16 system.
17 (i) "Qualified renewable energy system" shall mean a distributed
18 renewable energy resource system or technology as determined by the
19 commission consistent with the definition provided in paragraph (b) of
20 this subdivision that may result in the cost effective production of
21 electricity from renewable resources that has been constructed and is
22 owned by a qualifying owner. For the purposes of this section, they
23 shall include:
24 (i) wind;
25 (ii) solar photovoltaic, including rooftop and stand alone systems;
26 (iii) solar thermal;
27 (iv) geothermal;
28 (v) fuel cell technology;
29 (vi) hydro-kinetic, including approved river or tidal generation
30 systems;
31 (vii) hydroelectric;
32 (viii) biomass;
33 (ix) anaerobic digestion; and
34 (x) landfill gas to energy systems.
35 (j) "Renewable energy credit" or "REC" means the environmental attri-
36 butes associated with one megawatt-hour of qualified renewable energy
37 generation.
38 (k) The term "renewable energy resources" shall have the same meaning
39 as set forth in subdivision twelve of section 1-103 of the energy law.
40 (l) "Retail electric supplier" means an entity authorized to sell
41 electricity at retail rates and terms and conditions to end-use custom-
42 ers in New York, including an electric distribution company acting as a
43 provider of last resort or an energy service company approved by the
44 commission for such purpose.
45 (m) "Small retail distributed customer-sided renewable energy gener-
46 ation" means retail distributed renewable energy generation produced by
47 a qualified renewable energy system that is equal to or less than one
48 hundred kilowatts in size.
49 2. (a) Each retail electric supplier shall annually procure RECS by an
50 additional annual percentage point of such supplier's total electric
51 sales in each compliance year:
52 ComplianceAnnual
53 YearRequirement
54 20150.05%
55 20160.13%
A. 6122 3
1 20170.15%
2 20180.17%
3 20190.20%
4 20200.23%
5 20210.27%
6 20220.32%
7 20230.38%
8 20240.44%
9 20250.52%
10 20260.61%
11 20270.72%
12 20280.85%
13 (b) If by the year two thousand twenty-eight New York state has not
14 met its goal of thirty-five percent electric energy from renewable ener-
15 gy sources, the program established in this section shall be extended
16 and shall grow at a rate of 0.85 percentage points until this goal is
17 achieved.
18 (c) At least twenty-five percent of the annual obligation applicable
19 to each retail electric supplier shall be met through the procurement of
20 RECs associated with small retail customer-sided distributed renewable
21 energy generation. In the third compliance year and each year thereaft-
22 er the commission shall undertake a review concerning the retail elec-
23 tric supplier's ability to meet twenty-five percent of their annual
24 obligations through small retail customer-sided distributed renewable
25 energy generation. If the commission concludes that a retail electric
26 supplier cannot reasonably meet this obligation, the commission may
27 allow a retail electric supplier to apply for a waiver to procure power
28 purchase agreements from other sources.
29 (d) Obligations for the procurement of RECs associated with qualified
30 renewable energy generation shall continue until all existing power
31 purchase agreements have expired.
32 (e) Retail electric suppliers may meet their obligations established
33 by the commission pursuant to this subdivision through the procurement
34 of RECs together with or separate from the associated qualified renewa-
35 ble energy generation.
36 (f) The New York state energy research and development authority shall
37 establish an automated REC tracking system within one hundred eighty
38 days of the effective date of this section. Each qualifying owner shall
39 apply to the New York state energy research and development authority to
40 certify the amount of qualified renewable energy generation they will be
41 able to achieve and to receive a renewable energy credit certificate.
42 The New York state energy research and development authority shall
43 consult with the New York independent systems operator to verify the
44 amount of qualified renewable energy generation produced. Once this
45 amount is verified, the New York state energy research and development
46 authority shall issue the qualifying owner RECs proportional to the
47 amount of qualified renewable energy generation produced. Each REC
48 certificate shall have an electronic identification number to assist in
49 the tracking. Each issuance, sale, and trade of a REC shall be recorded
50 in the tracking system.
51 (g) RECs shall be eligible for use in meeting the obligations estab-
52 lished in this subdivision in the compliance year in which they are
53 created and for the following two compliance years.
54 3. (a) In the event that retail electric suppliers cannot meet their
55 obligations established in subdivision two of this section, they shall
A. 6122 4
1 be permitted to discharge such obligations by making an alternative
2 compliance payment in an amount established by the commission, provided,
3 however, that the commission shall set such payment at a level that
4 shall stimulate the development of new qualified renewable energy gener-
5 ation necessary to achieve the obligations established in subdivision
6 two of this section.
7 (b) No later than December first, two thousand fourteen, the commis-
8 sion shall establish an alternative compliance payment schedule through
9 the year two thousand fifteen. The commission shall set alternative
10 compliance payment levels no later than January thirty-first of each
11 year thereafter to serve as the payment level for the year in which it
12 is set. The commission shall review such schedule to ensure that the
13 payments are set at a level to stimulate the development of new quali-
14 fied renewable energy generation in accordance with paragraph (a) of
15 this subdivision. Once such schedule is established, the commission may
16 adopt, after appropriate notice and opportunity for public comment, an
17 increase in alternative compliance payments, provided that the commis-
18 sion shall not reduce previously established levels of payments, nor
19 shall the commission provide relief from the obligation of payment of
20 the alternative compliance payments by the retail electric suppliers in
21 any form.
22 (c) The commission shall make available all monies from amounts
23 collected through such alternative compliance payments for renewable
24 programs and initiatives to be administered and funded by the New York
25 state energy research and development authority.
26 4. (a) No later than December first, two thousand fourteen, the
27 commission shall establish a template for power purchase agreements to
28 be used by retail electric suppliers for their procurement of RECs for
29 the purpose of fulfilling their obligations established in subdivision
30 two of this section.
31 (b) Each retail electric supplier shall, not later than January first,
32 two thousand fifteen, submit for commission review and approval a solic-
33 itation plan that shall include a timetable and methodology for solicit-
34 ing proposals for RECs associated with qualified renewable energy gener-
35 ation other than small retail distributed renewable energy generation,
36 for the purpose of fulfilling its obligations established in subdivision
37 two of this section. The electric distribution company's solicitation
38 plan shall be designed to foster a diversity of renewable project sizes
39 and participation among all eligible customer classes subject to cost-
40 effectiveness considerations.
41 (c) Each retail electric supplier shall execute its approved solicita-
42 tion plan no later than thirty days after commission approval and submit
43 for commission review and approval its preferred procurement plan
44 comprised of any proposed power purchase agreements for RECs associated
45 with qualified renewable energy generation other than small retail
46 distributed renewable energy generation. The commission may approve,
47 reject or modify an application for approval of such plan, provided that
48 the commission shall approve such plan if the commission finds that: (i)
49 the solicitation and evaluation conducted by the electric distribution
50 company was the result of a fair, open, competitive and transparent
51 process; (ii) approval of the procurement plan would result in the
52 achievement of the distribution company's obligations pertaining to the
53 procurement of RECs associated with qualified renewable energy gener-
54 ation other than small retail distributed renewable energy generation at
55 the lowest reasonable cost; and (iii) such procurement plan satisfies
56 other criteria as may be established in the approved solicitation plan.
A. 6122 5
1 If the commission does not approve, reject or modify the distribution
2 company's application within sixty days, the procurement plan shall be
3 deemed approved.
4 (d) No later than January first, two thousand fifteen, each retail
5 electric supplier shall submit to the commission for review and approval
6 a plan for the achievement of its obligation pertaining to the procure-
7 ment of RECs associated with small retail distributed renewable energy
8 generation established in subdivision two of this section.
9 5. Each retail electric supplier shall be entitled to recover the
10 prudently incurred costs of complying with its obligations established
11 in subdivision two of this section, as determined by the commission.
12 6. No later than January first, two thousand fifteen, the commission
13 shall establish an incentive program for retail electric suppliers based
14 on such companies' achievement of their obligations, and exemplary
15 performance beyond such obligations, established in subdivision two of
16 this section (a) in a cost-effective manner that achieves the obli-
17 gations at least cost and avoids long-term costs to the transmission and
18 distribution system; (b) provides enhanced electricity reliability with-
19 in companies' service territories; and (c) minimizes peak load in
20 constrained areas.
21 7. No later than January first, two thousand fifteen, the commission
22 shall establish the terms and conditions that shall be applicable to
23 power purchase agreements entered into by retail electric suppliers for
24 the procurement of RECs associated with small retail distributed renewa-
25 ble energy generation, for the purpose of achieving such companies'
26 obligations pertaining to RECs associated with such generation estab-
27 lished in subdivision two of this section. Such terms and conditions
28 shall include a tariff, as established by the commission, for the
29 procurement of RECs associated with small retail distributed renewable
30 energy generation, to be paid by electric distribution companies to
31 applicable owners of qualified renewable energy technologies. The
32 commission shall review such tariffs every two years and adjust as
33 necessary to achieve the obligations pertaining to RECs associated with
34 small retail distributed renewable energy generation established in
35 subdivision two of this section; provided, however, that such adjust-
36 ments shall not go below the originally set tariff rate.
37 8. Retail contracts for the sale of electricity entered into before
38 January first, two thousand fifteen by retail electric suppliers that
39 are not electric distribution companies shall be exempt from the obli-
40 gations established in subdivision two of this section.
41 9. Each retail electric supplier shall be permitted to resell or
42 otherwise dispose of RECs and any associated qualified renewable energy
43 generation procured by such company that is in excess of its obligations
44 established in subdivision two of this section, provided the company
45 shall net the cost of payments made for RECs and any associated quali-
46 fied renewable energy generation under power purchase agreements against
47 the proceeds of the sale of RECs and any associated qualified renewable
48 energy generation, and the difference shall be credited or charged to
49 the electric distribution company's customers through a reconciling
50 component of electric rates, as determined by the commission.
51 10. (a) No later than January first, two thousand seventeen, and no
52 later than January first of each year thereafter through the year two
53 thousand twenty-eight, the commission shall report to the governor,
54 speaker of the assembly, the minority leader of the assembly, the tempo-
55 rary president of the senate, the majority leader of the senate, the
56 minority leader of the senate, chairs of the senate and assembly energy
A. 6122 6
1 committees, and the ranking minority members of the senate and assembly
2 energy committees, the chair of the renewable energy subcommittee in the
3 assembly, and shall post on its website, a report regarding the progress
4 of each retail electric supplier in meeting its obligations established
5 in subdivision two of this section.
6 (b) Each retail electric supplier shall provide to the commission the
7 information necessary to fulfill the commission's obligations pursuant
8 to this subdivision, in accordance with an annual reporting obligation
9 and process to be established by the commission.
10 (c) Each report that shall be submitted pursuant to this subdivision
11 shall include, but not be limited to, for each retail electric supplier
12 for the previous calendar year and for the total of all calendar years
13 to date: (i) the actual number of megawatt-hours of qualified renewable
14 energy generation sold at retail to New York end-use customers and the
15 total number of megawatt-hours sold at retail to New York end-use
16 customers and the rate impact to end-use customers; (ii) the number of
17 RECs associated with qualified renewable energy generation that were
18 retired for the purposes of meeting the supplier's obligations estab-
19 lished in subdivision two of this section; and (iii) the amount, if any,
20 of alternative compliance payments made.
21 (d) Such report shall also include, for each small retail electric
22 supplier that is an electric distribution company: (i) the number of
23 RECs each associated with small retail distributed renewable energy
24 generation and distributed renewable energy generation produced by
25 equipment of any size that were procured; (ii) the number of such RECs
26 procured through power purchase agreements and the electric distribution
27 company's ownership of qualified renewable energy generation, respec-
28 tively; and (iii) the amount paid to qualified renewable energy genera-
29 tors through tariffs established pursuant to subdivision seven of this
30 section for RECs associated with small retail distributed renewable
31 energy generation.
32 § 3. Section 1005 of the public authorities law is amended by adding a
33 new subdivision 17 to read as follows:
34 17. a. For purposes of this subdivision, the following terms shall
35 have the following meanings:
36 (i) "Alternative compliance payment" means a payment of a defined
37 dollar amount per megawatt-hour, as established by the public service
38 commission, that the authority shall submit to the public service
39 commission in order to comply with its annual obligations established in
40 paragraph b of this subdivision.
41 (ii) "Distributed renewable energy resource systems" means small-scale
42 power generation technologies in the range of one kilowatt to ten thou-
43 sand kilowatts used to provide an alternative to or an enhancement of
44 the traditional electric power system, using renewable energy resources.
45 (iii) "Distributed renewable energy generation" means qualified renew-
46 able energy generation produced by a qualified renewable energy system
47 that is interconnected to the customer's side or utility distribution
48 company meter.
49 (iv) "Electric distribution company" means an investor-owned utility
50 that distributes electricity within New York state.
51 (v) "New energy technologies" means all methods used to produce,
52 distribute, conserve and store energy by methods not in common commer-
53 cial use, with emphasis on renewable energy sources including but not
54 limited to solar, wind, bioconversion and solid waste.
A. 6122 7
1 (vi) "Power purchase agreement" means an agreement, for a minimum of
2 fifteen years, for the purchase of renewable energy credits from an
3 owner of a qualified renewable energy system.
4 (vii) "Qualifying owner" means the owner of a qualifying renewable
5 energy system that is also a:
6 (A) resident of New York state;
7 (B) limited liability company organized under the New York state
8 limited liability company law and made up of a majority of members who
9 are New York state residents; or
10 (C) New York not-for-profit organization organized under the New York
11 state not-for-profit law.
12 (viii) "Qualified renewable energy generation" means the electric
13 energy measure in kilowatt hours produced from a qualified renewable
14 energy system.
15 (ix) "Qualified renewable energy system" shall mean a distributed
16 renewable energy resource system or technology as determined by the
17 public service commission consistent with the definition provided in
18 subparagraph (ii) of this paragraph that may result in the cost effec-
19 tive production of electricity from renewable resources that has been
20 constructed and is owned by a qualifying owner. For the purposes of this
21 subdivision, they shall include:
22 (A) wind;
23 (B) solar photovoltaic, including rooftop and stand alone systems;
24 (C) solar thermal;
25 (D) geothermal;
26 (E) fuel cell technology;
27 (F) hydro-kinetic, including approved river or tidal generation
28 systems;
29 (G) hydroelectric;
30 (H) biomass;
31 (I) anaerobic digestion; and
32 (J) landfill gas to energy systems.
33 (x) "Renewable energy credit" or "REC" means the environmental attri-
34 butes associated with one megawatt-hour of qualified renewable energy
35 generation.
36 (xi) The term "renewable energy resources" shall have the same meaning
37 as set forth in subdivision twelve of section 1-103 of the energy law.
38 (xii) "Retail electric supplier" means an entity authorized to sell
39 electricity at retail rates and terms and conditions to end-use custom-
40 ers in New York, including an electric distribution company acting as a
41 provider of last resort or an energy service company approved by the
42 public service commission for such purpose.
43 (xiii) "Small retail distributed customer-sided renewable energy
44 generation" means retail distributed renewable energy generation
45 produced by a qualified renewable energy system that is equal to or less
46 than one hundred kilowatts in size.
47 b. (i) The authority shall annually procure, either through long-term
48 contracts of a minimum of fifteen years or payment to the commission for
49 compliance, RECs associated with gigawatt-hours of qualified renewable
50 energy generation in accordance with the following schedule:
51 ComplianceAnnual
52 YearRequirement
53 20150.25%
54 20160.40%
55 20170.55%
56 20180.70%
A. 6122 8
1 20190.90%
2 20201.10%
3 20211.30%
4 20221.50%
5 20231.75%
6 20242.00%
7 20252.50%
8 20263.00%
9 20273.50%
10 20284.50%
11 (ii) If by the year two thousand twenty-eight New York state has not
12 met its goal of thirty-five percent electric energy from renewable ener-
13 gy sources, the program established in section sixty-six-m of the public
14 service law shall be extended and shall grow at a rate of 0.85 percent-
15 age points until this goal is achieved.
16 (iii) At least twenty-five percent of the annual obligation applicable
17 to each retail electric supplier shall be met through the procurement of
18 RECs associated with small retail customer-sided distributed renewable
19 energy generation. In the third compliance year and each year thereaft-
20 er, the independent authority budget office, in consultation with the
21 commission, shall undertake a review concerning the authorities' ability
22 to meet twenty-five percent of their annual obligations through small
23 retail customer-sided distributed renewable energy generation. If the
24 independent authorities budget office, in consultation with the commis-
25 sion, concludes that the authority cannot reasonably meet this obli-
26 gation, the independent authorities budget office may allow the authori-
27 ty to apply for a waiver to procure power purchase agreements from other
28 sources.
29 (iv) Obligations for the procurement of RECs associated with qualified
30 renewable energy generation shall continue until all existing power
31 purchase agreements have expired.
32 (v) Retail electric suppliers that are also subject to compliance with
33 the requirements of the Renewable Portfolio Standard may use a portion
34 of the RECs procured under this act toward their Renewable Portfolio
35 Standard Requirements as follows: twenty percent of RECs procured under
36 this act may be applied toward a retail electric supplier's Renewable
37 Portfolio Standard requirement.
38 (vi) The authority may meet its obligations established in this para-
39 graph through the procurement of RECs together with or separate from the
40 associated qualified renewable energy generation.
41 (vii) The authority shall track RECs through the automated REC track-
42 ing system established pursuant to paragraph (f) of subdivision two of
43 section sixty-six-m of the public service law.
44 (viii) RECs shall be eligible for use in meeting the obligations
45 established in this subdivision in the compliance year in which they are
46 created and for the following two compliance years.
47 (ix) In the event that retail electric suppliers cannot meet their
48 obligations established in subdivision two of this section, they shall
49 be permitted to discharge such obligations by making an alternative
50 compliance payment in an amount established by the commission, provided,
51 however, that the commission shall set such payment at a level that
52 shall stimulate the development of new qualified renewable energy gener-
53 ation necessary to achieve the obligations established in subdivision
54 two of this section.
55 c. (i) No later than December first, two thousand fifteen, the author-
56 ity shall submit to the independent authorities budget office, governor,
A. 6122 9
1 speaker of the assembly, the minority leader of the assembly, the tempo-
2 rary president of the senate, the majority leader of the senate, the
3 minority leader of the senate, chair of the senate energy and telecommu-
4 nications committee, the ranking minority member of the senate energy
5 and telecommunications committee, chair of the assembly energy commit-
6 tee, the ranking minority member of the assembly energy committee, and
7 chair of the renewable energy subcommittee in the assembly, and shall
8 post on its website, a solicitation plan that shall include a timetable
9 and methodology for soliciting proposals for RECs associated with quali-
10 fied renewable energy generation other than small retail distributed
11 customer-sided renewable energy generation, for the purpose of fulfill-
12 ing its obligations established in paragraph b of this subdivision.
13 (ii) The authority shall execute its solicitation plan no later than
14 thirty days and shall submit to the independent authorities budget
15 office, governor, speaker of the assembly, minority leader of the assem-
16 bly, temporary president of the senate, majority leader of the senate,
17 minority leader of the senate, chair of the senate energy and telecommu-
18 nications committee, the ranking minority member of the senate energy
19 and telecommunications committee, chair of the assembly energy commit-
20 tee, the ranking minority member of the assembly energy committee, and
21 chair of the renewable energy subcommittee in the assembly, and shall
22 post on its website, its procurement plan comprised of any power
23 purchase agreements for RECs associated with small retail distributed
24 customer-sided renewable energy generation other than small retail
25 distributed renewable energy generation. The independent authorities
26 budget office shall review such plan to assess whether it is the result
27 of a fair, open, competitive and transparent process and shall report to
28 the governor, speaker of the assembly, minority leader of the assembly,
29 temporary president of the senate, minority leader of the senate, major-
30 ity leader of the senate, chair of the senate energy and telecommuni-
31 cations committee, the ranking minority member of the senate energy and
32 telecommunications committee, chair of the assembly energy committee,
33 the ranking minority member of the assembly energy committee, and chair
34 of the renewable energy subcommittee in the assembly regarding the
35 results of such assessment.
36 (iii) No later than January first, two thousand fifteen, the authority
37 shall submit to the independent authorities budget office, governor,
38 speaker of the assembly, minority leader of the assembly, temporary
39 president of the senate, majority leader of the senate, minority leader
40 of the senate, chair of the senate energy and telecommunications commit-
41 tee, the ranking minority member of the senate energy and telecommuni-
42 cations committee, chair of the assembly energy committee, the ranking
43 minority member of the assembly energy committee and chair of the renew-
44 able energy subcommittee in the assembly, and shall post on its website,
45 a plan for the achievement of its obligation pertaining to the procure-
46 ment of RECs associated with small retail distributed customer-sided
47 renewable energy generation established in paragraph b of this subdivi-
48 sion.
49 d. (i) No later than January first, two thousand seventeen, and no
50 later than January first of each year thereafter through the year two
51 thousand twenty-eight, the authority shall report to the independent
52 authorities budget office, governor, speaker of the assembly, the minor-
53 ity leader of the assembly, the temporary president of the senate,
54 majority leader of the senate, the minority leader of the senate, chair
55 of the senate energy and telecommunications committee, the ranking
56 minority member of the senate energy and telecommunications committee,
A. 6122 10
1 chair of the assembly energy committee, the ranking minority member of
2 the assembly energy committee, and chair of the renewable energy subcom-
3 mittee in the assembly, and shall post on its website, a report regard-
4 ing its progress in meeting its obligations established in paragraph b
5 of this subdivision.
6 (ii) Each report that shall be submitted pursuant to this paragraph
7 shall include, but not be limited to, for the previous calendar year and
8 for the total of all calendar years to date: (A) the number of RECs
9 associated with qualified renewable energy generation retired for the
10 purposes of meeting the authority's obligations established in paragraph
11 b of this subdivision; (B) the number of such RECs each associated with
12 small retail customer-sided distributed renewable energy generation and
13 retail distributed renewable energy generation produced by equipment of
14 any size that were procured; (C) the number of such RECs procured
15 through power purchase agreements and the authority's ownership of qual-
16 ified renewable energy generation, respectively; and (D) the amount paid
17 to qualified renewable energy generators through tariffs for RECs asso-
18 ciated with small retail distributed renewable energy generation.
19 § 4. Sections 1020-hh, 1020-ii and 1020-jj of the public authorities
20 law, as renumbered by chapter 433 of the laws of 2009, are renumbered
21 sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
22 to read as follows:
23 § 1020-hh. Procurement of renewable energy credits. 1. As used in
24 this section:
25 (a) "Alternative compliance payment" means a payment of a defined
26 dollar amount per megawatt-hour, as established by the public service
27 commission, that the authority shall submit to the public service
28 commission in order to comply with its annual obligations established in
29 subdivision two of this section.
30 (b) "Distributed renewable energy resource systems" means small-scale
31 power generation technologies in the range of one kilowatt to ten thou-
32 sand kilowatts used to provide an alternative to or an enhancement of
33 the traditional electric power system, using renewable energy resources.
34 (c) "Distributed renewable energy generation" means qualified renewa-
35 ble energy generation produced by a qualified renewable energy system
36 that is interconnected to the customer's side or utility distribution
37 company meter.
38 (d) "Electric distribution company" means an investor-owned utility
39 that distributes electricity within New York state.
40 (e) "New energy technologies" means all methods used to produce,
41 distribute, conserve and store energy by methods not in common commer-
42 cial use, with emphasis on renewable energy sources including but not
43 limited to solar, wind, bioconversion and solid waste.
44 (f) "Power purchase agreement" means an agreement, for a minimum of
45 fifteen years, for the purchase of renewable energy credits from an
46 owner of a qualified renewable energy system.
47 (g) "Qualifying owner" means the owner of a qualifying renewable ener-
48 gy system that is also a:
49 (i) resident of New York state;
50 (ii) limited liability company organized under the New York state
51 limited liability company law and made up of a majority of members who
52 are New York state residents; or
53 (iii) New York not-for-profit organization organized under the New
54 York state not-for-profit law.
A. 6122 11
1 (h) "Qualified renewable energy generation" means the electric energy
2 measure in kilowatt hours produced from a qualified renewable energy
3 system.
4 (i) "Qualified renewable energy system" shall mean a distributed
5 renewable energy resource system or technology as determined by the
6 public service commission consistent with the definition provided in
7 paragraph (b) of this subdivision that may result in the cost effective
8 production of electricity from renewable resources that has been
9 constructed and is owned by a qualifying owner. For the purposes of this
10 section, they shall include:
11 (i) wind;
12 (ii) solar photovoltaic, including rooftop and stand alone systems;
13 (iii) solar thermal;
14 (iv) geothermal;
15 (v) fuel cell technology;
16 (vi) hydro-kinetic, including approved river or tidal generation
17 systems;
18 (vii) hydroelectric;
19 (viii) biomass;
20 (ix) anaerobic digestion; and
21 (x) landfill gas to energy systems.
22 (j) "Renewable energy credit" or "REC" means the environmental attri-
23 butes associated with one megawatt-hour of qualified renewable energy
24 generation.
25 (k) The term "renewable energy resources" shall have the same meaning
26 as set forth in subdivision twelve of section 1-103 of the energy law.
27 (l) "Retail electric supplier" means an entity authorized to sell
28 electricity at retail rates and terms and conditions to end-use custom-
29 ers in New York, including an electric distribution company acting as a
30 provider of last resort or an energy service company approved by the
31 public service commission for such purpose.
32 (m) "Small retail distributed customer-sided renewable energy gener-
33 ation" means retail distributed renewable energy generation produced by
34 a qualified renewable energy system that is equal to or less than one
35 hundred kilowatts in size.
36 2. (a) The authority shall annually procure, either through long-term
37 contracts of a minimum of fifteen years or payment to the public service
38 commission for compliance, RECs associated with gigawatt-hours of quali-
39 fied renewable energy generation in accordance with the following sched-
40 ule:
41 ComplianceAnnual
42 YearRequirement
43 20150.25%
44 20160.40%
45 20170.55%
46 20180.70%
47 20190.90%
48 20201.10%
49 20211.30%
50 20221.50%
51 20231.75%
52 20242.00%
53 20252.50%
54 20263.00%
A. 6122 12
1 20273.50%
2 20284.50%
3 (b) If by the year two thousand twenty-eight New York state has not
4 met its goal of thirty-five percent electric energy from renewable ener-
5 gy sources, the program established in section sixty-six-m of the public
6 service law shall be extended and shall grow at a rate of 0.85 percent-
7 age points until this goal is achieved.
8 (c) At least twenty-five percent of the annual obligation applicable
9 to each retail electric supplier shall be met through the procurement of
10 RECs associated with small retail customer-sided distributed renewable
11 energy generation. In the third compliance year and each year thereaft-
12 er, the independent authorities budget office, in consultation with the
13 commission, shall undertake a review concerning the authorities ability
14 to meet twenty-five percent of their annual obligations through small
15 retail customer-sided distributed renewable energy generation. If the
16 independent authorities budget office, in consultation with the commis-
17 sion, concludes that the authority cannot reasonably meet this obli-
18 gation, the independent authorities budget office may allow the authori-
19 ty to apply for a waiver to procure power purchase agreements from other
20 sources.
21 (d) Obligations for the procurement of RECs associated with qualified
22 renewable energy generation shall continue until all existing power
23 purchase agreements have expired.
24 (e) The authority may meet its obligations established in this subdi-
25 vision through the procurement of RECs together with or separate from
26 the associated qualified renewable energy generation.
27 (f) Retail electric suppliers that are also subject to compliance with
28 the requirements of the Renewable Portfolio Standard may use a portion
29 of the RECs procured under this act toward their Renewable Portfolio
30 Standard requirements as follows: twenty percent of RECs procured under
31 this act may be applied toward a retail electric supplier's Renewable
32 Portfolio Standard requirement.
33 (g) The authority shall track RECs through the automated REC tracking
34 system established pursuant to paragraph (f) of subdivision two of
35 section sixty-six-m of the public service law.
36 (h) RECs shall be eligible for use in meeting the obligations estab-
37 lished in this subdivision in the compliance year in which they are
38 created and for the following two compliance years.
39 (i) In the event that retail electric suppliers cannot meet their
40 obligations established in subdivision two of this section, they shall
41 be permitted to discharge such obligations by making an alternative
42 compliance payment in an amount established by the commission, provided,
43 however, that the commission shall set such payment at a level that
44 shall stimulate the development of new qualified renewable energy gener-
45 ation necessary to achieve the obligations established in this subdivi-
46 sion.
47 (j) (i) No later than December first, two thousand fifteen, the
48 authority shall submit to the independent authorities budget office,
49 governor, speaker of the assembly, minority leader of the assembly,
50 temporary president of the senate, majority leader of the senate, minor-
51 ity leader of the senate, chair of the senate energy and telecommuni-
52 cations committee, the ranking minority member of the senate energy and
53 telecommunications committee, chair of the assembly energy committee,
54 the ranking minority member of the assembly energy committee, and chair
55 of the renewable energy subcommittee in the assembly, and shall post on
56 its website, a solicitation plan that shall include a timetable and
A. 6122 13
1 methodology for soliciting proposals for RECs associated with qualified
2 renewable energy generation other than small retail distributed custom-
3 er-sided renewable energy generation, for the purpose of fulfilling its
4 obligations established in paragraph (c) of this subdivision.
5 (ii) The authority shall execute its solicitation plan and shall
6 submit to the independent authorities budget office, governor, speaker
7 of the assembly, minority leader of the assembly, temporary president of
8 the senate, majority leader of the senate, minority leader of the
9 senate, chair of the senate energy and telecommunications committee,
10 ranking minority member of the senate energy and telecommunications
11 committee, chair of the assembly energy committee, the ranking minority
12 member of the assembly energy committee, and chair of the renewable
13 energy subcommittee in the assembly, and shall post on its website, its
14 procurement plan comprised of any power purchase agreements for RECs
15 associated with small retail distributed customer-sided renewable energy
16 generation other than small retail distributed renewable energy gener-
17 ation. The independent authorities budget office shall review such plan
18 to assess whether it is the result of a fair, open, competitive and
19 transparent process and shall report to the governor, speaker of the
20 assembly, minority leader of the assembly, temporary president of the
21 senate, majority leader of the senate, the minority leader of the
22 senate, chair of the senate energy and telecommunications committee,
23 ranking minority member of the senate energy and telecommunications
24 committee, chair of the assembly energy committee, ranking minority
25 member of the assembly energy committee, and chair of the renewable
26 energy subcommittee in the assembly regarding the results of such
27 assessment.
28 (iii) No later than January first, two thousand fifteen, the authority
29 shall submit to the independent authorities budget office, governor,
30 speaker of the assembly, minority leader of the assembly, temporary
31 president of the senate, majority leader of the senate, minority leader
32 of the senate, chair of the senate energy and telecommunications commit-
33 tee, ranking minority member of the senate energy and telecommunications
34 committee, chair of the assembly energy committee, ranking minority
35 member of the assembly energy committee, and chair of the renewable
36 energy subcommittee in the assembly, and shall post on its website, a
37 plan for the achievement of its obligation pertaining to the procurement
38 of RECs associated with small retail distributed customer-sided renewa-
39 ble energy generation established in paragraph (c) of this subdivision.
40 (k) (i) No later than January first, two thousand seventeen, and no
41 later than January first of each year thereafter through the year two
42 thousand twenty-eight, the authority shall report to the independent
43 authorities budget office, governor, speaker of the assembly, minority
44 leader of the assembly, temporary president of the senate, majority
45 leader of the senate, minority leader of the senate, chair of the senate
46 energy and telecommunications committee, ranking minority member of the
47 senate energy and telecommunications committee, chair of the assembly
48 energy committee, ranking minority member of the assembly energy commit-
49 tee, and chair of the renewable energy subcommittee in the assembly, and
50 shall post on its website, a report regarding its progress in meeting
51 its obligations established in paragraph (c) of this subdivision.
52 (ii) Each report that shall be submitted pursuant to this paragraph
53 shall include, but not be limited to, for the previous calendar year and
54 for the total of all calendar years to date: (A) the number of RECs
55 associated with qualified renewable energy generation retired for the
56 purposes of meeting the authority's obligations established in paragraph
A. 6122 14
1 (c) of this subdivision; (B) the number of such RECs each associated
2 with small retail customer-sided distributed renewable energy generation
3 and retail distributed renewable energy generation produced by equipment
4 of any size that were procured; (C) the number of such RECs procured
5 through power purchase agreements and the authority's ownership of qual-
6 ified renewable energy generation, respectively; and (D) the amount paid
7 to qualified renewable energy generators through tariffs for RECs asso-
8 ciated with small retail distributed renewable energy generation.
9 § 5. If any provision of this act is, for any reason, declared uncon-
10 stitutional or invalid, in whole or in part, by any court of competent
11 jurisdiction, such portion shall be deemed severable, and such unconsti-
12 tutionality or invalidity shall not affect the validity of the remaining
13 provisions of this act, which remaining provisions shall continue in
14 full force and effect.
15 § 6. This act shall take effect immediately; provided, however, that
16 this act shall expire and be deemed repealed on the date the commission-
17 er of the public service commission notifies the legislative bill draft-
18 ing commission of the occurrence of the implementation of a substantive-
19 ly similar federal program.
