Relates to "power purchase agreements" concerning energy technologies eligible for net metering.
TITLE OF BILL: An act to amend the energy law, in relation to energy technologies eligible for net metering
To allow the full deployment of clean energy technologies to school districts, municipalities and other public entities by making it permissible for long-term power purchase agreements to be binding on present and future governing boards.
SUMMARY OF PROVISIONS:
Section 1. Defines "Power Purchase Agreement"
Section 2. Amends the energy law to apply the requirements of a longterm power purchase agreement to current and future governing boards of school districts and municipalities, except upon cause as defined in the power purchase agreement. This section also encourages agencies, municipalities and school districts to consult with NYSERDA, and specifies that the Commissioner of Education is not required to develop a pre-approved form for Power Purchase Agreements, but is authorized to develop rules and regulations related to safety.
Section 3: Sets forth the effective date
Clean and renewable energy technologies are expanding exponentially in New York State as more residences and businesses move to take advantage of clean energy while lowering their own bills. By utilizing power purchase agreements, installers of these energy technologies can pay for the up-front cost of installation of the system, borrow capital from the bank, and have a firm source of repayment through the profit the company makes from the sale of electricity to the customer. This is a very positive development, because it saves the customer money while eliminating the need for a large up-front capital investment and also creating jobs. In addition, the more clean energy technologies that are installed, the lower our emissions are which will allow the state to better meet its environmental goals.
However, we need to do more to promote the use of clean energy technologies by school districts, municipalities and other public entities.
This bill is necessary because state rules and judicial decisions can act to limit the benefits inherent to a power purchase agreement as it relates to school districts, municipalities and Boards of Cooperative Educational Services. Basically, for a power purchase agreement to be executed and function properly, it, must he a long-term contract of 15 years or more. Unfortunately, rules that govern municipal bodies, do not allow a current Board to commit future boards to these kinds of costs, except in certain circumstances. One such circumstance is an energy performance contract. This bill simply allows a power purchase agreement to operate the same way that an energy performance contract does under the State Energy Law. This bill also eliminates the need
for the Commissioner of Education to approve a power purchase agreement, in order to prevent unwarranted delays.
This is a new bill
This bill shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6958--A IN SENATE April 9, 2014 ___________Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the energy law, in relation to energy technologies eligible for net metering THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 9-102 of the energy law is amended by adding a new subdivision 5 to read as follows: 5. "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT IN CONNECTION WITH THE INSTALLATION, MAINTENANCE AND MANAGEMENT OF AN ENERGY TECHNOLOGY ELIGIBLE FOR NET ENERGY METERING PURSUANT TO SECTION SIXTY-SIX-J OR SIXTY-SIX-L OF THE PUBLIC SERVICE LAW, WHERE A THIRD PARTY OWNER (NON-A- GENCY OR NON-MUNICIPAL OWNER) GENERATES ELECTRICITY FROM SUCH ENERGY TECHNOLOGY (WHETHER OR NOT SUCH ENERGY TECHNOLOGY IS LOCATED AT THE POINT OF CONSUMPTION) AND SELLS THE RESULTING ELECTRICITY TO AN AGENCY OR MUNICIPALITY FOR A PRICE, VOLUME AND DURATION AS SET FORTH IN THE AGREEMENT. S 2. The energy law is amended by adding a new section 9-104 to read as follows: S 9-104. POWER PURCHASE AGREEMENTS. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR JUDICIAL DECISION (INCLUDING ANY THAT RESTRICT THE AUTHORITY OF A GOVERNING BODY OF AN AGENCY OR MUNICIPALITY TO BIND SUBSEQUENT GOVERNING BODIES OF SUCH AGENCY OR MUNICIPALITY), ANY AGENCY, MUNICIPALITY, OR PUBLIC AUTHORITY, IN ADDITION TO EXISTING POWERS, IS AUTHORIZED TO ENTER INTO POWER PURCHASE AGREEMENTS OF UP TO THIRTY-FIVE YEARS DURATION, PROVIDED THAT THE DURATION OF ANY SUCH CONTRACT SHALL NOT EXCEED THE REASONABLY EXPECTED USEFUL LIFE OF THE ENERGY FACILITIES OR EQUIPMENT SUBJECT TO SUCH AGREEMENT. 2. POWER PURCHASE AGREEMENTS SHALL NOT BE REQUIRED TO INCLUDE THE CLAUSE SET FORTH IN SUBDIVISION TWO OF SECTION 9-103 OF THIS ARTICLE. 3. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW OR JUDICIAL DECISION (INCLUDING ANY THAT RESTRICT THE AUTHORITY OF A GOVERNING BODY OF ANEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14604-02-4 S. 6958--A 2
AGENCY OR MUNICIPALITY TO BIND SUBSEQUENT GOVERNING BODIES OF SUCH AGEN- CY OR MUNICIPALITY), POWER PURCHASE AGREEMENTS SHALL ONLY BE VOID, VOID- ABLE OR TERMINABLE BY EITHER THE THIRD PARTY OWNER OR THE AGENCY, MUNI- CIPALITY OR PUBLIC AUTHORITY FOR NON-PERFORMANCE BY THE OTHER PARTY, AS SET FORTH IN THE POWER PURCHASE AGREEMENT. 4. IN THE CASE OF A SCHOOL DISTRICT OR A BOARD OF COOPERATIVE EDUCA- TIONAL SERVICES, A POWER PURCHASE AGREEMENT SHALL BE AN ORDINARY CONTIN- GENT EXPENSE, AND SHALL IN NO EVENT BE CONSTRUED AS OR DEEMED A LEASE OR LEASE-PURCHASE OF A BUILDING OR FACILITY, FOR PURPOSES OF THE EDUCATION LAW. 5. AGENCIES, MUNICIPALITIES, AND PUBLIC AUTHORITIES ARE ENCOURAGED TO CONSULT WITH AND SEEK ADVICE AND ASSISTANCE FROM THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY CONCERNING POWER PURCHASE AGREEMENTS. 6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IN ORDER TO CONVEY AN INTEREST IN REAL PROPERTY NECESSARY FOR THE CONSTRUCTION OF FACILITIES OR THE OPERATION OF EQUIPMENT PROVIDED FOR IN A POWER PURCHASE AGREE- MENT, ANY AGENCY, MUNICIPALITY OR PUBLIC AUTHORITY MAY ENTER INTO A LEASE OR LICENSE OF SUCH REAL PROPERTY TO WHICH IT HOLDS TITLE OR WHICH IS UNDER ITS ADMINISTRATIVE JURISDICTION AS IS NECESSARY FOR SUCH CONSTRUCTION OR OPERATION, WITH A POWER PURCHASE AGREEMENT, FOR THE SAME LENGTH OF TIME AS THE TERM OF SUCH POWER PURCHASE AGREEMENT, AND ON SUCH TERMS AND CONDITIONS AS MAY BE AGREEABLE TO THE PARTIES THERETO, AND NOTWITHSTANDING THAT SUCH REAL PROPERTY MAY REMAIN USEFUL TO SUCH AGEN- CY, MUNICIPALITY OR PUBLIC AUTHORITY FOR THE PURPOSE FOR WHICH SUCH REAL PROPERTY WAS ORIGINALLY ACQUIRED OR DEVOTED OR FOR WHICH SUCH REAL PROP- ERTY IS BEING USED. 7. SECTIONS ONE HUNDRED THREE AND ONE HUNDRED NINE-B OF THE GENERAL MUNICIPAL LAW SHALL APPLY TO THE PROCUREMENT OR ACQUISITION OF A POWER PURCHASE AGREEMENT AS CONTEMPLATED BY THIS SECTION. 8. THE COMMISSIONER OF EDUCATION SHALL NOT BE REQUIRED TO DEVELOP A FORM OF PRE-APPROVED POWER PURCHASE AGREEMENT OR BE REQUIRED TO APPROVE ANY POWER PURCHASE AGREEMENTS TO BE EXECUTED BY A PARTY IN CONNECTION WITH THIS, BUT IS AUTHORIZED TO DEVELOP RULES AND REGULATIONS CONCERNING THE PROCESS FOR ISSUING BUILDING PERMITS AND OPERATIONAL SAFETY IN RELATION TO THE INSTALLATION AND OPERATION OF ENERGY TECHNOLOGIES ELIGI- BLE FOR NET ENERGY METERING PURSUANT TO SECTION SIXTY-SIX-J OR SIXTY-SIX-L OF THE PUBLIC SERVICE LAW. S 3. This act shall take effect immediately.