Establishes the New York state clean energy tech production program as a self-directed program for industrial, commercial and large users in order to stimulate the growth and adoption of more efficient use of energy, greater use of advanced energy management products, deeper penetration of renewable energy resources, wider deployment of "distributed" energy resources, and storage.
STATE OF NEW YORK
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1225--B
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
___________
Introduced by Sens. GRIFFO, CARLUCCI, CROCI, FUNKE, LITTLE, RITCHIE --
read twice and ordered printed, and when printed to be committed to
the Committee on Energy and Telecommunications -- reported favorably
from said committee, ordered to first and second report, ordered to a
third reading, passed by Senate and delivered to the Assembly,
recalled, vote reconsidered, restored to third reading, amended and
ordered reprinted, retaining its place in the order of third reading
-- recommitted to the Committee on Energy and Telecommunications in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the public service law, in relation to establishing the
New York state clean energy tech production program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public service law is amended by adding a new section
2 66-p to read as follows:
3 § 66-p. New York state clean energy tech production program. 1. The
4 commission shall, within forty-five days of the effective date of this
5 section, commence a proceeding to establish a self-directed program for
6 its industrial, commercial and large energy users, in order to stimulate
7 the growth and adoption of more efficient use of energy, greater use of
8 advanced energy management products, deeper penetration of renewable
9 energy resources such as wind, solar, geothermal, renewable biomass or
10 biogas and anaerobic digestion, wider deployment of "distributed" energy
11 resources, such as micro grids, roof-top solar, fuel cells and other
12 on-site power supplies, and energy storage.
13 2. The commission, in collaboration with the utilities and large
14 industrial customers, shall develop, oversee and issue guidelines estab-
15 lishing rules and principles for the self-directed program which shall
16 include the following elements:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03370-04-8
S. 1225--B 2
1 (a) A program structure that allows industrial, commercial and large
2 users to treat their existing and future clean energy surcharges;
3 including, but not limited to, surcharges to support the clean energy
4 fund, the system benefits charge, the renewable portfolio standard, the
5 energy efficiency portfolio standard and energy efficiency transition
6 implementation plans as dedicated funds for energy efficiency, greater
7 use of advanced energy management products, deeper penetration of renew-
8 able energy resources such as wind, solar, geothermal, and anaerobic
9 digestion, wider deployment of "distributed" energy resources, such as
10 micro grids, roof-top solar, fuel cells and other on-site power
11 supplies, and energy storage through an energy savings account.
12 (b) The self-directed program shall be available to all individual
13 customers with a thirty-six month average demand of two megawatts or
14 greater as well as customers with an aggregated thirty-six month average
15 demand of four megawatts or greater as long as one or more of the
16 accounts being aggregated by the customer has at least a thirty-six
17 month average demand of one megawatt.
18 (c) A mechanism to recoup paid funds from self-directed customers if
19 it is determined that funds contained in the energy savings account were
20 utilized erroneously or if planned energy efficiency or other projects
21 permitted herein did not actually occur.
22 (d) A requirement that after seven years any unused surcharges
23 contained in the energy saving account shall be made available for
24 original purposes of the surcharge.
25 (e) A requirement to collect and establish self-directed customers'
26 baseline energy use data.
27 (f) A method to measure and verify all claimed energy objectives,
28 using the same standards for data collection as other existing and
29 future clean energy surcharges.
30 (g) Offering self-directed customers multi-year time frames greater
31 than thirty-five months in which to expend aggregated energy efficiency
32 fees.
33 (h) A means to calculate energy optimization established by the
34 commission and based on annual electricity usage, provided that:
35 (1) annual electricity usage shall be normalized so that neither of
36 the following are included in the calculation of the percentage of
37 incremental energy savings: (i) changes in electricity usage because of
38 changes in business activity levels not attributable to energy optimiza-
39 tion; (ii) changes in electricity usage because of the installation,
40 operation, or testing of pollution control equipment.
41 (2) savings may also be calculated on the average number of megawatt
42 hours of electricity sold by the electric provider annually during the
43 previous three years to retail customers in this state.
44 (i) The self-directed customer must develop a self-directed optimiza-
45 tion plan. Such plan shall outline how the customer intends to achieve
46 the goals of the self-directed program.
47 (j) A customer implementing a self-directed energy optimization plan
48 shall provide a brief report biannually documenting the measures taken
49 to meet the goals of the self-directed program. The report shall provide
50 sufficient information for the utilities and the commission to monitor
51 progress toward the goals in the self-directed plan and to develop reli-
52 able estimates of the energy savings, renewable power generated and/or
53 the deployment of distributed energy resources that are being achieved
54 from self-directed plans.
55 (k) Participants will have the opportunity to self-direct all of their
56 own contributions otherwise recovered through surcharges to qualifying
S. 1225--B 3
1 projects, provided, however, that a portion of the contributions, equal
2 to no more than one percent, is allocated to support program adminis-
3 tration and evaluation, measurement and verification.
4 (l) A mechanism to provide that measures taken by self-directed
5 customers, to meet the goals of the self-directed program, should be
6 accredited to the appropriate program goals of the utility and/or load
7 serving entity of the self-directed customer. Nothing contained in this
8 section shall be construed as transferring the obligations of one
9 customer class to another customer class.
10 (m) A requirement that self-direct customers match seven and one-half
11 percent of self-directed energy optimization plan total costs provided
12 such matching contribution may be in the form of a financial and/or in
13 kind contribution.
14 3. The commission shall provide an annual report on or before the
15 first day of January to the governor, the temporary president of the
16 senate, the speaker of the assembly, the minority leader of the senate
17 and the minority leader of the assembly, on the clean energy tech
18 production program.
19 § 2. This act shall take effect immediately.