S T A T E O F N E W Y O R K
________________________________________________________________________
187--A
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. HEVESI, HOYT, LUPARDO -- read once and referred
to the Committee on Energy -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the public service law, in relation to requiring certain
providers of electric service to purchase electricity from eligible
electric generators; establishing a rate schedule for certain renewa-
ble energy projects; prescribing the powers and duties of certain
state agencies and officials; and requiring a report to the governor
and the legislature concerning the effect of the purchase by providers
of electric service of electricity generated from renewable energy
sources
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Legislative intent and purpose. It is the intent of the
2 legislature to enable the rapid and sustainable development of the
3 state's abundant renewable energy resources for the clean generation of
4 electricity and to allow all New York citizens to participate in renewa-
5 ble electricity generation. It is the further intent of the legislature
6 to ensure that such rapid development of renewable energy shall promote
7 the growth and development of a diverse renewable energy industry within
8 the state of New York, that it shall maximize the creation of clean
9 energy jobs within the state, and that it shall encourage the direct
10 participation of a diverse set of owners of generation, including home-
11 owners, large and small business, public entities, and non-profit enti-
12 ties.
13 Doing so will reduce the volatility of future electricity prices and
14 the long-term costs of electricity, and it will have the effect of
15 protecting the state's natural resources, including protecting its
16 atmosphere from air pollution and its climate from global warming.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01287-05-9
A. 187--A 2
1 Further, such measures shall place New York at the forefront of North
2 America's renewable energy revolution, stimulating the development of
3 new jobs, technologies, and industry within the state and creating a New
4 York marketplace for the development of renewable energy.
5 S 2. This act shall be known and may be cited as the "New York renewa-
6 ble energy sources act".
7 S 3. The public service law is amended by adding a new section 66-m to
8 read as follows:
9 S 66-M. RENEWABLE ENERGY RESOURCES TARIFF. 1. AS USED IN THIS
10 SECTION: (A) "ADEQUATE RENEWABLE ENERGY DEVELOPMENT" MEANS A RATE OF
11 DEVELOPMENT NECESSARY TO ACCOMPLISH THE RENEWABLE ENERGY OBJECTIVES AND
12 STANDARDS AS DETERMINED BY THE COMMISSION;
13 (B) "AVERAGE SPECIFIC YIELD" MEANS THE AVERAGE NUMBER OF KILOWATT
14 HOURS PRODUCED DURING THE INITIAL FIVE YEARS OF PRODUCT OF A WIND ENERGY
15 CONVERSION SYSTEM, EXCLUDING THE MAXIMUM AND MINIMUM YEARS OF
16 PRODUCTION, DIVIDED BY THE ROTOR-SWEPT AREA IN SQUARE METERS;
17 (C) "CAPACITY" MEANS THE NAMEPLATE CAPACITY OF A RENEWABLE ELECTRICITY
18 GENERATOR FOR PHOTOVOLTAIC MODULES AT STANDARD TEST CONDITIONS;
19 (D) "ELECTRIC UTILITY" MEANS A PUBLIC UTILITY PROVIDING ELECTRIC
20 SERVICE, A GENERATION AND TRANSMISSION COOPERATIVE ELECTRIC ASSOCIATION,
21 A MUNICIPAL POWER AGENCY, OR A POWER DISTRICT PROVIDING ELECTRICITY TO
22 STATE RESIDENTS;
23 (E) "ELECTRICAL DISTRIBUTION SYSTEM" MEANS THAT PORTION OF THE ELEC-
24 TRIC POWER SYSTEM OVER WHICH THE FEDERAL ENERGY REGULATORY COMMISSION
25 DOES NOT HAVE AUTHORITY TO INTERCONNECT ELECTRIC GENERATORS THAT SELL
26 ELECTRICITY IN INTRASTATE COMMERCE ONLY;
27 (F) "ELIGIBLE ENERGY TECHNOLOGY" MEANS AN ENERGY TECHNOLOGY THAT
28 GENERATES ELECTRICITY FROM THE FOLLOWING RENEWABLE ENERGY SOURCES:
29 (1) SOLAR;
30 (2) WIND;
31 (3) HYDROELECTRIC WITH A CAPACITY OF LESS THAN ONE HUNDRED MEGAWATTS;
32 (4) BIOMASS, WHICH INCLUDES LANDFILL GAS, OR AN ANAEROBIC DIGESTER
33 SYSTEM;
34 (5) RIVER HYDRO-KINETIC ELECTRIC GENERATION; OR
35 (6) TIDAL HYDRO-KINETIC ELECTRIC GENERATION, EXCEPT THOSE CONSTRUCTED
36 AS DAMS OR AS PART OF A BARGE STRUCTURE;
37 (G) "FACADE OR INTEGRATED ROOFTOP CLADDING PROJECT" MEANS A PROJECT IN
38 WHICH A PHOTOVOLTAIC DEVICE IS ATTACHED TO THE WALL OR ROOF OF A BUILD-
39 ING IN SUCH A WAY AS TO SERVE THE NORMAL FUNCTION OF AN EQUIVALENT
40 BUILDING CLADDING SYSTEM;
41 (H) "LARGE WIND ENERGY CONVERSION SYSTEM" MEANS A SINGLE WIND TURBINE
42 WITH A ROTOR-SWEPT AREA OF MORE THAN TWO THOUSAND SQUARE METERS;
43 (I) "MEDIUM WIND ENERGY CONVERSION SYSTEM" MEANS A SINGLE WIND TURBINE
44 WITH A ROTOR-SWEPT AREA OF BETWEEN ONE AND TWO THOUSAND SQUARE METERS;
45 (J) "LEVELIZED RATE" MEANS A RATE ESTABLISHED FOR A PARTICULAR POWER
46 PURCHASE AGREEMENT THAT IS HELD UNCHANGED DURING THE ENTIRE TERM OF THAT
47 AGREEMENT;
48 (K) "NET METERED PHOTOVOLTAIC GENERATOR" MEANS A PHOTOVOLTAIC SYSTEM
49 CONNECTED ON THE CUSTOMER SIDE OF THE ELECTRIC METER AND OPERATING IN
50 PARALLEL WITH THE ELECTRIC GRID ACCORDING TO THE REQUIREMENTS OF SECTION
51 SIXTY-SIX-J OF THIS ARTICLE;
52 (L) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
53 ELECTRICITY FROM INCIDENT SUNLIGHT BY MEANS OF THE PHOTOVOLTAIC EFFECT,
54 WHETHER OR NOT THE DEVICE IS ABLE TO STORE THE ENERGY PRODUCED FOR LATER
55 USE;
A. 187--A 3
1 (M) "REASONABLE PROFIT" MEANS A RATE OF PROFIT THAT IS JUST AND
2 REASONABLE, BUT NOT LESS THAN TEN PERCENT PER YEAR;
3 (N) "RENEWABLE ELECTRICITY GENERATOR" MEANS A PROJECT THAT GENERATES
4 ELECTRICAL ENERGY, WITHIN THE BORDERS OF NEW YORK STATE BY MEANS OF AN
5 ELIGIBLE ENERGY TECHNOLOGY, BUT DOES NOT INCLUDE AN ENERGY RECOVERY
6 FACILITY USED TO CAPTURE THE HEAT VALUE OF MIXED MUNICIPAL SOLID WASTE
7 OR REFUSE-DERIVED FUEL FROM MIXED MUNICIPAL SOLID WASTE AS A PRIMARY
8 FUEL;
9 (O) "ROOFTOP PROJECT" MEANS A PROJECT IN WHICH A PHOTOVOLTAIC DEVICE
10 IS PHYSICALLY ATTACHED TO THE ROOF OF A BUILDING;
11 (P) "ROTOR-SWEPT AREA" MEANS AN AREA EQUAL TO 3.1416 MULTIPLIED BY THE
12 SQUARE OF THE LENGTH OF THE ROTOR OF A WIND ENERGY CONVERSION SYSTEM;
13 (Q) "SMALL WIND ENERGY CONVERSION SYSTEM" MEANS A SINGLE WIND TURBINE
14 WITH A ROTOR-SWEPT AREA OF NO MORE THAN ONE THOUSAND SQUARE METERS; AND
15 (R) "WIND ENERGY CONVERSION SYSTEM" MEANS ANY DEVICE, SUCH AS A WIND
16 CHARGER, WINDMILL, OR WIND TURBINE, WHICH CONVERTS WIND ENERGY TO A FORM
17 OF USABLE ENERGY;
18 (S) "POWER PURCHASE AGREEMENT" MEANS A LONG TERM AGREEMENT BETWEEN AN
19 ENERGY PROVIDER AND A CUSTOMER TO PURCHASE POWER AT PREDETERMINED RATES;
20 AND
21 (T) FOR THE PURPOSES OF THIS SUBDIVISION, "EFFICIENCY" MEANS THE SUM
22 OF THE NET USEFUL POWER OUTPUT PLUS THE NET USEFUL THERMAL OUTPUT OF AN
23 ELECTRICITY GENERATING SYSTEM, WHICH SUM IS THEN DIVIDED BY THE TOTAL
24 FUEL INPUT.
25 2. A POLICY IS ESTABLISHED TO PROVIDE OPPORTUNITIES FOR STATE RESI-
26 DENTS TO OWN AND INVEST IN RENEWABLE ELECTRICITY GENERATION AND REQUIR-
27 ING UTILITIES TO PURCHASE ELECTRICAL ENERGY AT A JUST AND REASONABLE
28 PRICE FROM STATE-OWNED RENEWABLE ELECTRICITY GENERATION PROJECTS
29 CONNECTED TO THE ELECTRICAL DISTRIBUTION SYSTEM IN ACCORDANCE WITH THE
30 STANDARD TERMS AND RATES PROVIDED IN THIS SECTION.
31 3. ON OR BEFORE DECEMBER FIRST, TWO THOUSAND NINE, EACH ELECTRIC UTIL-
32 ITY PROVIDING ELECTRIC SERVICE WITHIN THE STATE AT RETAIL COST SHALL
33 FILE FOR COMMISSION APPROVAL A TARIFF CONSISTENT WITH THE PROVISIONS OF
34 THIS SECTION. THE COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS
35 FROM THE DATE ON WHICH THE SCHEDULE IS FILED.
36 4. EACH ELECTRIC UTILITY SHALL ENTER INTO A POWER PURCHASE AGREEMENT
37 WITH THE OWNERS OF A RENEWABLE ELECTRICITY GENERATOR CONNECTED TO THE
38 NEW YORK ELECTRICAL DISTRIBUTION SYSTEM OR A NET METERED PHOTOVOLTAIC
39 GENERATOR TO PURCHASE ALL OF THE ELECTRICITY PRODUCED BY THE RENEWABLE
40 ELECTRICITY GENERATOR. THE TERM OF THE POWER PURCHASE AGREEMENT MUST NOT
41 BE LESS THAN TWENTY YEARS FROM THE DATE OF COMMISSIONING OF THE RENEWA-
42 BLE ELECTRICITY GENERATOR. THE RATES OF THE POWER PURCHASE AGREEMENT
43 MUST BE THE RATES ESTABLISHED BY THE COMMISSION UNDER SUBDIVISION FIVE
44 OF THIS SECTION.
45 5. THE TARIFF DESCRIBED IN SUBDIVISION THREE OF THIS SECTION SHALL
46 HAVE A LEVELIZED RATE SCHEDULE AS FOLLOWS:
47 (A) THE RATE FOR ELECTRICITY GENERATED BY A WIND ENERGY CONVERSION
48 SYSTEM SHALL BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY
49 DEVELOPMENT, PLUS A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
50 (1) FOR A LARGE WIND ENERGY CONVERSION SYSTEM FOR YEARS ONE THROUGH
51 FIVE FOLLOWING THE COMMISSIONING OF THE PROJECT, $0.105 PER KILOWATT
52 HOUR;
53 (2) FOR A LARGE WIND ENERGY CONVERSION SYSTEM FOR YEARS SIX THROUGH
54 TWENTY FOLLOWING COMMISSIONING OF THE PROJECT:
A. 187--A 4
1 (I) $0.105 PER KILOWATT HOUR FOR PROJECTS WITH AN AVERAGE SPECIFIC
2 YIELD LESS THAN SEVEN HUNDRED KILOWATT HOURS PER SQUARE METER OF SWEPT
3 ROTOR AREA PER YEAR;
4 (II) $0.06 PER KILOWATT HOUR FOR PROJECTS WITH AN AVERAGE SPECIFIC
5 YIELD GREATER THAN ELEVEN HUNDRED KILOWATT HOURS PER SQUARE METER OF
6 SWEPT ROTOR AREA PER YEAR; AND
7 (III) A LINEAR EXTRAPOLATION BETWEEN THE RATES IN CLAUSES (I) AND (II)
8 OF THIS SUBPARAGRAPH FOR A PROJECT WITH AN AVERAGE SPECIFIC YIELD GREAT-
9 ER THAN SEVEN HUNDRED KILOWATT HOURS PER SQUARE METER OF SWEPT ROTOR
10 AREA PER YEAR BUT LESS THAN ELEVEN HUNDRED KILOWATT HOURS PER SQUARE
11 METER OF SWEPT ROTOR AREA PER YEAR;
12 (3) FOR A SMALL WIND ENERGY CONVERSION SYSTEM, $0.23 PER KILOWATT
13 HOUR;
14 (4) FOR A MEDIUM WIND ENERGY CONVERSION SYSTEM, $0.13 PER KILOWATT
15 HOUR;
16 (5) FOR OFFSHORE WIND TURBINE PROJECTS IN WATERS WITH A DEPTH OF
17 BETWEEN ONE TO TWENTY METERS, $0.12 PER KILOWATT HOUR;
18 (6) FOR OFFSHORE WIND TURBINE PROJECTS LOCATED IN DEPTHS OF MORE THAN
19 ONE HUNDRED METERS, $0.14 PER KILOWATT HOUR;
20 (7) FOR OFFSHORE WIND TURBINE PROJECTS LOCATED IN WATER DEPTHS BETWEEN
21 TWENTY TO ONE HUNDRED METERS, A RATE OF BETWEEN $0.12 TO $0.14 PER KILO-
22 WATT HOUR INCREASING FROM $0.12 AT A RATE OF $.00025 PER KILOWATT HOUR
23 FOR EVERY METER OF WATER DEPTH GREATER THAN TWENTY METERS; AND
24 (8) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH SEVEN OF THIS
25 PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.02 PER KILOWATT HOUR FOR
26 A PROJECT WHOSE OWNER IS NOT LEGALLY ABLE TO ACCESS THE FEDERAL
27 PRODUCTION TAX CREDIT OR RENEWABLE INVESTMENT TAX CREDIT.
28 (B) THE RATE FOR ELECTRICITY GENERATED FROM HYDROELECTRIC POWER MUST
29 BE THE LOWEST RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOP-
30 MENT, PLUS A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
31 (1) $0.09 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY BELOW FIVE
32 HUNDRED KILOWATTS;
33 (2) $0.075 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF FIVE
34 HUNDRED KILOWATTS BUT LESS THAN TEN MEGAWATTS; AND
35 (3) $0.055 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
36 TEN MEGAWATTS BUT LESS THAN TWENTY MEGAWATTS.
37 (C) THE RATE FOR ELECTRICITY GENERATED BY AN ANAEROBIC DIGESTER SYSTEM
38 OR OTHER BIOMASS SYSTEM THAT OPERATES AT AN EFFICIENCY OF SIXTY PERCENT
39 OR GREATER, MUST BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY
40 DEVELOPMENT, PLUS A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
41 (1) $0.135 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY BELOW ONE
42 HUNDRED FIFTY KILOWATTS;
43 (2) $0.115 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
44 ONE HUNDRED FIFTY KILOWATTS BUT LESS THAN FIVE HUNDRED KILOWATTS;
45 (3) $0.105 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY GREATER
46 THAN FIVE HUNDRED KILOWATTS BUT LESS THAN FIVE MEGAWATTS; AND
47 (4) $0.095 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
48 FIVE MEGAWATTS BUT LESS THAN TWENTY MEGAWATTS.
49 (D) THE RATE FOR ELECTRICITY GENERATED BY LANDFILL GAS THAT OPERATES
50 AT AN EFFICIENCY OF SIXTY PERCENT OR GREATER MUST BE THE RATE NEEDED TO
51 ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT, PLUS A REASONABLE PROFIT,
52 INITIALLY SET AS FOLLOWS:
53 (1) $0.09 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY UNDER FIVE
54 HUNDRED KILOWATTS; AND
55 (2) $0.075 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF FIVE
56 HUNDRED KILOWATTS OR MORE.
A. 187--A 5
1 (E) THE RATE FOR ELECTRICITY GENERATED BY A PHOTOVOLTAIC DEVICE MUST
2 BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT PLUS
3 A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
4 (1) $0.33 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY GREATER THAN
5 TWO THOUSAND KILOWATTS CONNECTED TO THE NEW YORK DISTRIBUTION SYSTEM
6 (NOT NET METERED);
7 (2) $0.31 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY BELOW THIRTY
8 KILOWATTS;
9 (3) $0.27 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
10 THIRTY KILOWATTS BUT LESS THAN ONE HUNDRED KILOWATTS;
11 (4) $0.24 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
12 ONE HUNDRED KILOWATTS BUT LESS THAN FIVE HUNDRED KILOWATTS;
13 (5) $0.22 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
14 FIVE HUNDRED KILOWATTS BUT LESS THAN TWO THOUSAND KILOWATTS;
15 (6) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
16 PARAGRAPH, ACCORDING TO SIZE PLUS AN ADDED $0.05 KILOWATT HOUR FOR A
17 FACADE OR INTEGRATED ROOF CLADDING PROJECT;
18 (7) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
19 PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR FOR
20 A PROJECT LOCATED IN A NON-ATTAINMENT AREA AS DEFINED BY THE NEW YORK
21 STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION;
22 (8) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
23 PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR FOR
24 A PROJECT LOCATED IN A NYISO LOAD POCKET AS DEFINED BY THE PUBLIC UTILI-
25 TY COMMISSION;
26 (9) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
27 PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR FOR
28 A PROJECT LOCATED ON A BROWNFIELD AS DEFINED IN THE NEW YORK STATE
29 DEPARTMENT OF ENVIRONMENTAL CONSERVATION BROWNFIELD PROGRAM;
30 (10) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
31 PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR FOR
32 A PROJECT FOR WHICH SEVENTY-FIVE PERCENT OF THE COSTS OF LABOR AND MATE-
33 RIALS IN THE PROJECT ARE SOURCED IN NEW YORK STATE; AND
34 (11) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
35 PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.10 PER KILOWATT HOUR FOR
36 A PROJECT WHOSE OWNER IS A NOT-FOR-PROFIT ENTITY OR PUBLICLY-OWNED ENTI-
37 TY.
38 (12) NO PROJECT SHALL BE ENTITLED TO ADD MORE THAN TWO OF THE ADDED
39 RATES ESTABLISHED IN SUBPARAGRAPHS SIX THROUGH ELEVEN OF THIS PARAGRAPH.
40 (F) THE RATE FOR ELECTRICITY GENERATED BY A HYDROKINETIC DEVICE MUST
41 BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT PLUS
42 A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
43 (1) $0.11 PER KILOWATT HOUR FOR RUN-OF-RIVER HYDROKINETIC DEVICES WITH
44 A CAPACITY OF LESS THAN FIVE HUNDRED KILOWATTS (TOTAL FOR PROJECT);
45 (2) $0.09 PER KILOWATT HOUR FOR RUN-OF-RIVER HYDROKINETIC DEVICES WITH
46 A CAPACITY OF MORE THAN FIVE HUNDRED KILOWATTS BUT LESS THAN FIVE MEGA-
47 WATTS (TOTAL FOR PROJECT);
48 (3) $0.08 PER KILOWATT HOUR FOR RUN-OF-RIVER HYDROKINETIC DEVICES WITH
49 A CAPACITY OF MORE THAN FIVE MEGAWATTS (TOTAL FOR PROJECT);
50 (4) $0.12 PER KILOWATT HOUR FOR TIDAL ENERGY BASED HYDROKINETIC
51 DEVICES WITH A CAPACITY OF LESS THAN FIVE HUNDRED KILOWATTS (TOTAL FOR
52 PROJECT), NO DAMS ARE ALLOWED;
53 (5) $0.10 PER KILOWATT HOUR FOR TIDAL ENERGY BASED HYDROKINETIC
54 DEVICES WITH A CAPACITY OF BETWEEN FIVE HUNDRED KILOWATTS AND FIVE MEGA-
55 WATTS (TOTAL), NO DAMS ARE ALLOWED; AND
A. 187--A 6
1 (6) $0.09 PER KILOWATT HOUR FOR TIDAL ENERGY BASED HYDROKINETIC
2 DEVICES WITH A CAPACITY OF MORE THAN FIVE MEGAWATTS (TOTAL FOR PROJECT),
3 NO DAMS ARE ALLOWED.
4 6. (A) THE NEW POWER PURCHASE AGREEMENTS OFFERED BY UTILITIES TO
5 PHOTOVOLTAIC GENERATORS IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS
6 SECTION SHALL BE LIMITED BY STATEWIDE CAPACITY CAPS FOR DELIVERY IN EACH
7 YEAR ACCORDING TO THE FOLLOWING TABLE:
8 FOR THE YEAR... NOT MORE THAN...
9 2010 94 MEGAWATTS
10 2011 113 MEGAWATTS
11 2012 135 MEGAWATTS
12 2013 161 MEGAWATTS
13 2014 193 MEGAWATTS
14 2015 231 MEGAWATTS
15 2016 277 MEGAWATTS
16 2017 331 MEGAWATTS
17 2018 397 MEGAWATTS
18 2019 475 MEGAWATTS
19 2020 569 MEGAWATTS.
20 (B) EACH UTILITY SHALL OFFER POWER PURCHASE AGREEMENTS DURING EACH
21 CALENDAR QUARTER UNTIL THE TOTAL CAPACITY UNDER CONTRACT IS EQUAL TO THE
22 STATEWIDE CAPACITY FOR THE YEAR SHOWN IN THE TABLE ESTABLISHED BY PARA-
23 GRAPH (A) OF THIS SUBDIVISION, DIVIDED BY FOUR, AND MULTIPLIED BY THE
24 FRACTION OF STATEWIDE LOAD SERVED BY THAT UTILITY. IF, DURING ANY YEAR,
25 THE STATEWIDE TOTAL OF NEW POWER PURCHASE AGREEMENTS EXECUTED IS LESS
26 THAN THE AMOUNT SHOWN IN THE TABLE ABOVE, THE SHORTFALL SHALL BE ADDED
27 TO THE AMOUNT FOR THE FOLLOWING YEAR.
28 (C) NO SINGLE DEVELOPER, INCLUDING ITS SUBSIDIARIES AND AFFILIATES,
29 SHALL BE OFFERED POWER PURCHASE AGREEMENTS TOTALING MORE THAN TWENTY
30 PERCENT OF THE STATEWIDE TOTAL FOR ANY YEAR AS SHOWN IN THE TABLE ABOVE.
31 (D) TWENTY-FIVE PERCENT OF THE STATEWIDE CAPACITY FOR EACH YEAR ESTAB-
32 LISHED IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE RESERVED FOR RESI-
33 DENTIAL PHOTOVOLTAIC SYSTEMS. HOWEVER, IF DURING ANY CALENDAR QUARTER,
34 THE STATEWIDE TOTAL OF POWER PURCHASE AGREEMENTS FOR RESIDENTIAL PHOTO-
35 VOLTAIC SYSTEMS IS LESS THAN TWENTY PERCENT OF THE TOTAL SHOWN IN THE
36 TABLE ABOVE DIVIDED BY FOUR, THE COMMISSION MAY CONSIDER LOWERING THE
37 CAPACITY RESERVED FOR RESIDENTIAL SYSTEMS FOR THE FOLLOWING CALENDAR
38 QUARTER. ONCE THE REDUCED PERCENTAGE AS DETERMINED BY THE COMMISSION IS
39 REACHED IN ANY SUBSEQUENT QUARTER THE RESERVATION SHALL BE RESTORED TO
40 TWENTY-FIVE PERCENT FOR THE NEXT FOLLOWING QUARTER.
41 (E) NO MORE THAN TWENTY-FIVE PERCENT OF THE STATEWIDE CAPACITY FOR
42 EACH YEAR ESTABLISHED IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE
43 OFFERED TO PHOTOVOLTAIC SYSTEMS WITH A CAPACITY GREATER THAN TWO THOU-
44 SAND KILOWATTS.
45 7. (A) DURING THE TERM OF A POWER PURCHASE AGREEMENT ENTERED INTO
46 UNDER THE TARIFF ESTABLISHED IN THIS SECTION, NEITHER THE RENEWABLE
47 ENERGY GENERATOR RECEIVING PAYMENTS UNDER SUCH A CONTRACT, NOR THE UTIL-
48 ITY MAKING SUCH PAYMENTS, SHALL EARN OR RECEIVE RENEWABLE ENERGY CERTIF-
49 ICATES (RECS). THE RENEWABLE ENERGY GENERATION FOR WHICH SUCH PAYMENTS
50 ARE MADE SHALL BE SUBTRACTED FROM THE STATEWIDE OBLIGATIONS UNDER THE
51 NEW YORK STATE RENEWABLE PORTFOLIO STANDARD (RPS), AND THUS REDUCE EACH
52 OBLIGOR'S SHARE OF RESPONSIBILITY UNDER THE RPS.
53 (B) THE RENEWABLE ENERGY GENERATOR RECEIVING PAYMENTS UNDER A POWER
54 PURCHASE AGREEMENT ESTABLISHED IN THIS SECTION SHALL NOT BE PREVENTED BY
55 THIS SECTION FROM RECEIVING CREDITS OTHER THAN THOSE ESTABLISHED BY THE
56 NEW YORK STATE RPS, SUCH AS CREDITS UNDER THE REGIONAL GREENHOUSE GAS
A. 187--A 7
1 INITIATIVE OR OTHER CARBON CREDITS. SUCH OTHER CREDITS SHALL BECOME THE
2 PROPERTY OF THE UTILITY MAKING PAYMENTS UNDER THE POWER PURCHASE AGREE-
3 MENT. PROCEEDS FROM THE SALE OF ANY SUCH CREDITS BY A UTILITY SHALL BE
4 APPLIED AGAINST ANY RECOVERY OF COSTS SOUGHT BY THAT UTILITY UNDER THIS
5 SECTION.
6 (C) THE RENEWABLE ENERGY GENERATOR RECEIVING PAYMENTS UNDER A POWER
7 PURCHASE AGREEMENT ESTABLISHED IN THIS SECTION SHALL NOT BE PREVENTED BY
8 THIS ARTICLE FROM RECEIVING ANY AVAILABLE FEDERAL OR STATE TAX CREDITS,
9 HOWEVER GENERATORS RECEIVING REBATES FOR RENEWABLE SYSTEMS FUNDED UNDER
10 THE NEW YORK STATE SYSTEM BENEFIT CHARGE WILL HAVE THE AMOUNT FUNDED BY
11 THEIR POWER PURCHASE AGREEMENT DIMINISHED BY THE AMOUNT OF THAT REBATE.
12 8. (A) BEGINNING FEBRUARY FIRST, TWO THOUSAND ELEVEN, AND EVERY YEAR
13 THEREAFTER, THE COMMISSION SHALL REVIEW AND ADJUST RATES ADOPTED UNDER
14 THE TARIFF IN THIS SECTION AS NECESSARY TO ACHIEVE ADEQUATE RENEWABLE
15 ENERGY DEVELOPMENT; ACCOUNT FOR INFLATION; PROVIDE FOR A REASONABLE, BUT
16 NOT EXCESSIVE, PROFIT TO OWNERS OF RENEWABLE ELECTRICITY GENERATORS;
17 PROMOTE DEVELOPMENT OF COMMUNITY-BASED ENERGY DEVELOPMENT PROJECTS; AND
18 MINIMIZE COSTS TO RATEPAYERS OF A UTILITY'S COMPLIANCE WITH APPLICABLE
19 STATE OR FEDERAL RENEWABLE ENERGY STANDARDS. IT IS THE INTENT OF THIS
20 SECTION THAT THE RATES SHALL BE REDUCED AT A MINIMUM BY FIVE PERCENT PER
21 YEAR, SO LONG AS THE REQUIREMENTS OF THIS SUBDIVISION ARE MET. ONCE
22 ADOPTED, THE ADJUSTED RATES SHALL APPLY TO ALL TWENTY YEAR POWER
23 PURCHASE AGREEMENTS SUBSEQUENTLY ENTERED INTO UNTIL THE NEXT ANNUAL
24 ADJUSTMENT GOES INTO EFFECT.
25 (B) THE COMMISSION MAY, AFTER NOTICE AND HEARING, REQUIRE ELECTRIC
26 UTILITIES TO ENTER INTO POWER PURCHASE AGREEMENTS WITH RENEWABLE PROJECT
27 OWNERS AT RATES IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION AS
28 ARE NECESSARY TO ACHIEVE ADEQUATE RENEWABLE ENERGY DEVELOPMENT UPON SUCH
29 TERMS NEEDED TO ENSURE ACCOMPLISHMENT OF COMMUNITY-BASED ENERGY DEVELOP-
30 MENT PROJECT PROCUREMENT GOALS AND ADEQUATE LOCAL BENEFITS.
31 9. THE TARIFF IN THIS SECTION MUST PROVIDE THAT ELECTRIC UTILITIES
32 WILL INTERCONNECT RENEWABLE ENERGY GENERATORS TO THE ELECTRICAL DISTRIB-
33 UTION SYSTEM UNDER THE JURISDICTION OF THE COMMISSION TO THE MAXIMUM
34 EXTENT OF STATE JURISDICTION ALLOWED UNDER FEDERAL LAW. THE COMMISSION
35 SHALL CONSULT WITH THE FEDERAL ENERGY REGULATORY COMMISSION AND OTHER
36 APPROPRIATE ENTITIES TO ESTABLISH AN INTERCONNECTION REQUEST REVIEW
37 PROCEDURE TO PROMPTLY AND EFFICIENTLY DETERMINE WHETHER OR NOT THE
38 COMMISSION MAY INTERCONNECT A RENEWABLE ENERGY GENERATOR THAT REQUESTS
39 INTERCONNECTION UNDER STATE AUTHORITY. THE COMMISSION SHALL ISSUE
40 ORDERS NECESSARY TO ESTABLISH INTERCONNECTION TARIFFS FOR THE STANDARD-
41 IZED, COST-EFFECTIVE, TIMELY, RELIABLE, AND SAFE INTERCONNECTION OF
42 RENEWABLE ELECTRICITY GENERATORS UNDER STATE AUTHORITY. THE COMMISSION
43 SHALL ESTABLISH STANDARD INTERCONNECTION CONTRACTS AND INTERCONNECTION
44 SCHEDULES. THE COSTS ASSOCIATED WITH THE INTERCONNECTION OF RENEWABLE
45 ELECTRICITY GENERATORS, INCLUDING DIRECT INTERCONNECTION COSTS, DISTRIB-
46 UTION SYSTEM ENHANCEMENTS, AND ELECTRIC UTILITY COMPLIANCE COSTS, ARE
47 RECOVERABLE AS PROVIDED IN SUBDIVISION ELEVEN OF THIS SECTION.
48 10. THE COMMISSION SHALL APPROVE A STANDARD CONTRACT TO BE USED IN ALL
49 POWER PURCHASE AGREEMENTS UNDER THE TARIFF ESTABLISHED UNDER THIS
50 SECTION. THE CONTRACT SHALL (A) INCLUDE THE LEVELIZED PRICE PAID FOR
51 EACH KILOWATT HOUR GENERATED, AND THE DURATION OF THE CONTRACT; (B)
52 SHALL NOT INCLUDE PENALTIES FOR FAILURE TO DELIVER A SPECIFIC QUANTITY
53 OF RENEWABLE ENERGY, BUT SHALL PAY FOR ENERGY AS DELIVERED; AND (C)
54 CONTRACTS FOR PHOTOVOLTAIC GENERATORS MAY BE CANCELLED IF THE RENEWABLE
55 GENERATING SYSTEM IS NOT COMPLETED AND OPERATING WITHIN A REASONABLE
A. 187--A 8
1 PERIOD OF TIME AFTER CONTRACT EXECUTION, AS DETERMINED BY THE PUBLIC
2 SERVICE COMMISSION.
3 11. THE COMMISSION SHALL REQUIRE AN ELECTRIC UTILITY TO FILE RATE
4 SCHEDULES CONTAINING PROVISIONS FOR THE AUTOMATIC ADJUSTMENT OF CHARGES
5 FOR ELECTRIC UTILITY SERVICE IN DIRECT RELATION TO THE COST OF ELECTRIC-
6 ITY PURCHASED FROM RENEWABLE ELECTRICITY GENERATORS UNDER THE TARIFF
7 ESTABLISHED UNDER SUBDIVISION FIVE OF THIS SECTION AND ALL OTHER COSTS
8 REQUIRED TO COMPLY WITH THE TARIFF. THE ELECTRIC UTILITY SHALL BE ENTI-
9 TLED TO RECOVER COSTS ASSOCIATED WITH PAYMENTS MADE TO RENEWABLE ELEC-
10 TRICITY GENERATORS PURSUANT TO THIS SECTION, AND REASONABLE ADMINISTRA-
11 TIVE COSTS. THE COMMISSION SHALL BE AUTHORIZED TO PROVIDE INCENTIVES TO
12 UTILITIES THAT FAITHFULLY PERFORM THE REQUIREMENTS SET FORTH IN THIS
13 ACT. SUCH INCENTIVES SHALL TAKE INTO ACCOUNT THE POTENTIAL FOR POWER
14 PURCHASE AGREEMENTS ENTERED INTO BY UTILITIES PURSUANT TO THIS ACT TO BE
15 IMPUTED AS DEBT.
16 12. RENEWABLE ENERGY GENERATORS, QUALIFYING OWNERS THAT OWN ALL OR
17 PART OF A RENEWABLE ENERGY GENERATOR, AND ELECTRIC UTILITIES SHALL, UPON
18 REQUEST, PROVIDE THE COMMISSION ANY INFORMATION THAT MAY BE RELEVANT TO
19 THE COMMISSION PERFORMING ITS DUTIES UNDER THIS SECTION, INCLUDING BUT
20 NOT LIMITED TO ASSESSMENT OF PROJECT DEVELOPMENT COSTS, EQUIPMENT COSTS,
21 ELECTRICITY PRODUCTION COSTS, INTERCONNECTION COSTS, AUTOMATIC RATE
22 ADJUSTMENTS, AND COMPLIANCE COSTS.
23 13. BY JANUARY FIRST OF TWO THOUSAND ELEVEN AND TWO THOUSAND TWELVE,
24 AND EVERY FOUR YEARS THEREAFTER, THE COMMISSION SHALL SUBMIT A REPORT TO
25 THE GOVERNOR AND LEGISLATURE THAT SHALL INCLUDE THE FOLLOWING:
26 (A) THE NUMBER OF NEW RENEWABLE ELECTRICITY GENERATORS IN THIS STATE
27 AND THE ENVIRONMENTAL EFFECTS OF THE ADDITION OF THOSE GENERATORS;
28 (B) RECOMMENDATIONS FOR LEGISLATION AND CHANGES TO THE RATES IN SUBDI-
29 VISION FOUR OF THIS SECTION, IF ANY; AND
30 (C) ACTIONS TAKEN BY THE COMMISSION TO IMPLEMENT THE PROVISIONS OF
31 THIS SECTION AND TO USE THE TARIFF TO ACHIEVE THE RENEWABLE ENERGY
32 OBJECTIVES AND STANDARDS.
33 S 4. This act shall take effect immediately.