S T A T E O F N E W Y O R K ________________________________________________________________________ 1061 2011-2012 Regular Sessions I N S E N A T E (PREFILED) January 5, 2011 ___________ Introduced by Sens. PARKER, PERKINS -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Tele- communications AN ACT to amend the public service law, in relation to New York state renewable electric generation pilot programs 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 73 to read as follows: 3 S 73. NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT PROGRAMS. 1. 4 THE COMMISSION SHALL ESTABLISH NEW YORK STATE RENEWABLE ELECTRIC GENER- 5 ATION PILOT PROGRAMS TO AUTHORIZE THE DEVELOPMENT OF UP TO THREE HUNDRED 6 MEGAWATTS OF RENEWABLE ELECTRIC CAPACITY STATEWIDE, IN ORDER TO STIMU- 7 LATE THE GROWTH OF CLEAN, AFFORDABLE, AND RELIABLE SOURCES OF ENERGY AND 8 TO FOSTER NEW PARTNERSHIPS BETWEEN ELECTRIC CORPORATIONS, ENERGY PRODUC- 9 ERS AND ENERGY CUSTOMERS IN NEW YORK STATE. 10 2. (A) THE COMMISSION SHALL OVERSEE THE IMPLEMENTATION OF THE PILOT 11 PROGRAMS AND SHALL DIRECT ELECTRIC CORPORATIONS TO BUILD OR CAUSE TO BE 12 BUILT RENEWABLE ENERGY FACILITIES TO BE FINANCED UNDER TERMS ESTABLISHED 13 THROUGH AN ORDER OF THE COMMISSION WHICH SHALL AUTHORIZE CAPITAL AND 14 OPERATING COSTS TO BE RECOVERED IN THE CORPORATIONS RATE BASE AND TO 15 EARN A REASONABLE RETURN OVER A PERIOD TO BE DETERMINED BY THE COMMIS- 16 SION, PROVIDED THAT THE CORPORATION SHALL, AT MINIMUM, PROVIDE THE 17 COMMISSION WITH THE FOLLOWING: 18 (I) A DETAILED DESCRIPTION AND ECONOMIC EVALUATION OF THE PROPOSED 19 INVESTMENT; 20 (II) A DISCUSSION OF THE COSTS, BENEFITS, AND RISKS OF THE PROPOSAL, 21 INCLUDING AN ANALYSIS OF THE COSTS, BENEFITS, AND RATE IMPLICATIONS TO 22 THE PARTICIPATING CUSTOMERS, TO THE COMPANY'S DEFAULT SERVICE CUSTOMERS, 23 AND TO THE UTILITY'S DISTRIBUTION CUSTOMERS; EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00883-01-1 S. 1061 2 1 (III) A DESCRIPTION OF ANY EQUIPMENT OR INSTALLATION SPECIFICATIONS, 2 SOLICITATIONS, AND PROCUREMENTS IT HAS IMPLEMENTED OR INTENDS TO IMPLE- 3 MENT; 4 (IV) A SHOWING THAT IT HAS MADE REASONABLE EFFORTS TO INVOLVE LOCAL 5 BUSINESSES IN ITS PROGRAM; 6 (V) EVIDENCE OF COMPLIANCE WITH ALL APPLICABLE EMISSION LIMITATIONS; 7 AND 8 (VI) A COPY OF ANY CUSTOMER CONTRACTS OR AGREEMENTS TO BE EXECUTED AS 9 PART OF THE PROGRAM. 10 (B) RENEWABLE GENERATION FACILITIES ELIGIBLE TO BE CONSTRUCTED AND 11 FINANCED UNDER THE NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT 12 PROGRAMS SHALL: 13 (I) GENERATE ELECTRICITY THROUGH USE OF THE FOLLOWING TECHNOLOGIES: 14 SOLAR; WIND; PHOTOVOLTAICS; TIDAL; GEOTHERMAL; AND FUEL CELLS; OR 15 (II) GENERATE ELECTRICITY THROUGH LOW-IMPACT, RUN-OF-RIVER HYDROELEC- 16 TRIC ELECTRIC GENERATING EQUIPMENT WITH CAPACITY UP TO THIRTY MEGAWATTS 17 WITH NO NEW STORAGE IMPOUNDMENT; 18 (III) BE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH 19 APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS; 20 (IV) CONNECT TO THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN 21 ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES; 22 (V) OPERATE IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTAB- 23 LISHED BY THE COMMISSION; AND 24 (VI) BE LOCATED WITHIN THE STATE, INCLUDING FACILITIES THAT CONSIST OF 25 CUSTOMER-OWNED OR LEASED GENERATORS. 26 (C) AUTHORIZE ELECTRIC CORPORATIONS TO OWN AN EQUITY INTEREST IN SUCH 27 FACILITIES AND ALLOW PARTNERSHIPS WITH INDEPENDENT POWER PRODUCERS, 28 DEVELOPERS, AND/OR CUSTOMER-OWNED OR LEASED GENERATORS. 29 S 2. The public service commission shall provide an annual report on 30 or before the first day of June to the governor, the temporary president 31 of the senate, the speaker of the assembly, the minority leader of the 32 senate, and the minority leader of the assembly reporting the progress 33 of their efforts and the effects of the program on the environment and 34 public. Such report shall identify each facility participating in the 35 pilot project and shall include, but not be limited to, information on 36 each energy source or sources used for generation at such facility; the 37 sum capacity, in megawatts, of all electrical generating equipment used 38 by the facility; the date the facility will begin or has begun generat- 39 ing electricity; and the number and category of customer-owned or leased 40 generators. 41 S 3. This act shall take effect immediately; provided, however, that 42 not later than the one hundred eightieth day after this act shall have 43 become a law, the public service commission shall have in place a 44 competitive process which shall be open to electric corporations.