S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 9516--A

                          I N  A S S E M B L Y

                               May 6, 2014
                               ___________

Introduced  by  M.  of  A. PAULIN, BRINDISI, BARRETT, BUCHWALD, GUNTHER,
  LIFTON, MOSLEY, OTIS, SKARTADOS, STECK, ZEBROWSKI, GALEF, RYAN, ENGLE-
  BRIGHT, SKOUFIS, ROSENTHAL, SEPULVEDA -- Multi-Sponsored by --  M.  of
  A.  BRENNAN,  CAMARA,  COOK, MAGEE, RIVERA, SIMANOWITZ, THIELE -- read
  once and referred to the Committee on Energy -- reported and  referred
  to  the  Committee  on  Ways  and  Means -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14604-03-4

A. 9516--A                          2

  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  AN
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.