S T A T E   O F   N E W   Y O R K
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                                 7964--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 2, 2015
                               ___________

Introduced by M. of A. PAULIN, LUPARDO, MOSLEY -- read once and referred
  to  the  Committee on Energy -- recommitted to the Committee on Energy
  in accordance with Assembly Rule 3, sec. 2  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the public service  law,  in  relation  to  a  community
  renewable facility pilot program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public service law is amended by adding a  new  section
66-o to read as follows:
  S 66-O. NEW YORK STATE COMMUNITY RENEWABLE FACILITY PILOT PROGRAM.  1.
AS USED IN THIS SECTION, "COMMUNITY RENEWABLE FACILITY" SHALL MEAN SOLAR
ELECTRIC  GENERATING  EQUIPMENT,  WIND ELECTRIC GENERATING EQUIPMENT AND
HYDROELECTRIC GENERATING EQUIPMENT NOT TO EXCEED TEN MEGAWATTS, WHICH AN
ELECTRIC CORPORATION  IS  AUTHORIZED  TO  OWN  AND  OPERATE  UNDER  THIS
SECTION. SUCH EQUIPMENT SHALL BE MANUFACTURED, INSTALLED AND OPERATED IN
CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION
FACILITIES.
  2. THE COMMISSION SHALL ESTABLISH THE NEW YORK STATE COMMUNITY RENEWA-
BLE  FACILITY  PILOT PROGRAM TO AUTHORIZE THE DEVELOPMENT OF UP TO FIFTY
MEGAWATTS OF COMMUNITY RENEWABLE FACILITY CAPACITY  STATEWIDE,  STRIVING
FOR  A  REGIONAL  BALANCE, IN ORDER TO STIMULATE THE GROWTH OF COMMUNITY
RENEWABLE FACILITIES, USING  A  SUBSCRIPTION-BASED  MODEL  WHICH  OFFERS
ENERGY  FOR  A  PERIOD OF TEN YEARS, WITH ELECTRIC CORPORATION OWNERSHIP
AND MANAGEMENT. ANY SUBSCRIPTION PARTICIPATION BY ELECTRIC  CORPORATIONS
SHALL BE ON A DEFAULT BASIS ONLY IN THE EVENT OF UNSOLD SUBSCRIPTIONS.
  3.  THE  COMMISSION  SHALL  OVERSEE  AND APPROVE THE IMPLEMENTATION OF
COMMUNITY RENEWABLE FACILITY PILOT  PROGRAMS  BY  ELECTRIC  CORPORATIONS
WHICH SHALL INCLUDE THE FOLLOWING ELEMENTS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11429-06-6

              

A. 7964--A                          2

  (A)  ELECTRIC  CORPORATIONS SHALL OWN OR HAVE A LONG-TERM LEASE ON THE
REAL PROPERTY WHERE A RENEWABLE FACILITY WILL BE  CONSTRUCTED  AND  SUCH
LOCATION  SHALL BE STRATEGICALLY LOCATED SO AS TO ALLOW FOR AN OPTIMIZED
AND MORE SECURE AND FLEXIBLE ELECTRIC POWER SYSTEM.
  (B)  THE  ELECTRIC  CORPORATION  SHALL  OWN THE RENEWABLE FACILITY AND
OTHER INFRASTRUCTURE REQUIRED  TO  INTEGRATE  THE  ELECTRICITY  PRODUCED
EFFECTIVELY  INTO THE GRID CONNECTING TO THE ELECTRIC SYSTEM WHICH SHALL
BE INTERCONNECTED AND OPERATED IN  PARALLEL  WITH  THE  ELECTRIC  CORPO-
RATION'S DISTRIBUTION FACILITIES.
  (C)  THE  ELECTRIC CORPORATIONS SHALL ISSUE A REQUEST FOR PROPOSAL FOR
THE CONSTRUCTION FOR THE RENEWABLE FACILITY.
  (D) CUSTOMERS SHALL BE PROVIDED THE OPPORTUNITY TO PARTICIPATE IN  THE
COMMUNITY  RENEWABLE FACILITY PILOT PROGRAM ON A FIRST COME, FIRST SERVE
BASIS WHILE A PERCENTAGE OF SUBSCRIPTIONS SHALL BE  RETAINED  AS  DETER-
MINED BY THE COMMISSION FOR LOW AND MODERATE INCOME PARTICIPATION.
  (E)  TERMS  OF  PARTICIPATION  FOR  CUSTOMERS SHALL BE PROPOSED BY THE
ELECTRIC CORPORATION FOR REVIEW BY THE COMMISSION:
  (I) THE COMMISSION SHALL ALLOW  UTILITIES  TO  PROPOSE  TERMS  WHEREBY
PARTICIPATING  CUSTOMERS  SHALL  RECEIVE A BLOCK OF ENERGY IN INCREMENTS
APPROVED BY THE COMMISSION BASED ON THE AVERAGE  MONTHLY  USAGE  OF  THE
CUSTOMER  WITH  A FIXED PRICE PER KILOWATT HOUR FOR EACH BLOCK OF ENERGY
WITH A RATE TO REMAIN CONSTANT FOR A FIXED PERIOD OF YEARS  AS  APPROVED
BY THE COMMISSION; AND
  (II)  THE COMMISSIONER SHALL CONSIDER ALTERNATE OR ADDITIONAL TERMS OF
PARTICIPATION AS PROPOSED BY THE ELECTRIC CORPORATION.
  (F) ANY CUSTOMER PARTICIPATING IN  THE  COMMUNITY  RENEWABLE  FACILITY
PILOT  PROGRAM SHALL BE EXEMPT FROM THE SYSTEMS BENEFITS CHARGES AND THE
CLEAN ENERGY STANDARD SURCHARGES BASED ON THEIR SUBSCRIPTION.
  (G) THE ELECTRIC CORPORATION MAY PARTICIPATE IN FUNDING  OPPORTUNITIES
PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
OF THE NEW YORK POWER AUTHORITY.
  4. THE ECONOMIC EVALUATION OF THE PROPOSED COMMUNITY RENEWABLE FACILI-
TY PILOT PROGRAM BY THE COMMISSION SHALL INCLUDE A REVIEW OF THE FOLLOW-
ING:
  THE  ELECTRIC CORPORATION, IN DETERMINING THE FIXED PRICE PER KILOWATT
HOUR FOR COMMUNITY RENEWABLE FACILITY OWNERSHIP, SHALL INCLUDE THE ANNU-
AL COST OF SERVICE ON THE  ASSET,  LESS  THE  ESTIMATED  AVERAGE  ANNUAL
CAPACITY AND ENERGY REVENUE. FOR PURPOSES OF THIS PARAGRAPH, FIXED COSTS
IN  DETERMINING  THE  FIXED  PRICE  SHALL INCLUDE: PROJECT INSTALLATION,
PROJECT  MATERIAL,  LABOR,  TAXES,  INSURANCE,  OPERATION,  MAINTENANCE,
INTERCONNECTION  COSTS,  THE  ELECTRIC CORPORATION'S FINANCING COSTS FOR
THE PROJECT INCLUDING COST OF DEBT, DEPRECIATION AND RETURN  ON  EQUITY,
ENVIRONMENTAL AND PERMITTING COSTS, SITE SECURITY, DECOMMISSIONING COSTS
AND INFORMATION TECHNOLOGY PROGRAMMING COSTS.
  5. THE PARTICIPATING ELECTRIC CORPORATION SHALL:
  (A)  DEMONSTRATE  TO  THE  COMMISSION THAT REASONABLE EFFORTS SHALL BE
MADE TO INFORM CUSTOMERS OF THE OPPORTUNITY TO PARTICIPATE IN THE COMMU-
NITY RENEWABLE FACILITY PILOT PROGRAM;
  (B) PROVIDE A COPY OF ANY CUSTOMER AGREEMENTS TO BE EXECUTED  AS  PART
OF THE PROGRAM;
  (C)  PROVIDE  AN  EXAMINATION OF THE COSTS, BENEFITS, AND RISKS OF ANY
PROPOSAL SUBMITTED BY AN ELECTRIC CORPORATION INCLUDING THE RATE  IMPLI-
CATIONS; AND
  (D)  DEMONSTRATE THAT IT HAS ENTERED INTO A LABOR PEACE AGREEMENT WITH
A BONA-FIDE LABOR ORGANIZATION OF JURISDICTION THAT IS ACTIVELY  ENGAGED
IN  REPRESENTING  OR  ATTEMPTING TO REPRESENT THE ELECTRIC CORPORATION'S

A. 7964--A                          3

EMPLOYEES. THE MAINTENANCE OF SUCH A LABOR PEACE AGREEMENT SHALL  BE  AN
ONGOING MATERIAL CONDITION OF AUTHORIZATION TO OWN A COMMUNITY RENEWABLE
FACILITY UNDER THIS SECTION.
  6.  THE  COMMISSION  SHALL  PROVIDE  AN ANNUAL REPORT ON OR BEFORE THE
FIRST DAY OF JANUARY TO THE GOVERNOR, THE  TEMPORARY  PRESIDENT  OF  THE
SENATE,  THE  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE
AND THE MINORITY LEADER OF THE  ASSEMBLY,  ON  THE  COMMUNITY  RENEWABLE
FACILITY PILOT PROGRAM.
  7. NO SOONER THAN FIVE YEARS AFTER ESTABLISHMENT OF THE STATE COMMUNI-
TY  RENEWABLE  FACILITY  PILOT PROGRAM AND ONLY AFTER REACHING THE FIFTY
MEGAWATT CAP ESTABLISHED PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION,
THE  COMMISSION  MAY  INCREASE THE CAP BY AN ADDITIONAL MAXIMUM OF FIFTY
MEGAWATTS.
  8. THE COMMISSION MAY SUSPEND  OR  TERMINATE  THE  PROGRAM  AUTHORIZED
UNDER  THIS  SECTION FOR ONE OR MORE ELECTRIC CORPORATIONS PROVIDED THAT
THE COMMISSION, AFTER CONDUCTING A HEARING AS PROVIDED IN SECTION TWENTY
OF THIS CHAPTER, MAKES A FINDING THAT THE PROGRAM IMPEDES THE  PROVISION
OF  SAFE  AND  ADEQUATE  ELECTRIC SERVICE OR THAT THERE IS A SIGNIFICANT
INCREASE IN ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT  THE  COMMIS-
SION DETERMINES IS RELATED TO THE PROGRAM.
  S  2.  This  act shall take effect immediately; provided however, that
not later than one hundred eighty days after this act shall have  become
a  law,  the public service commission shall have in place a competitive
process which shall be open to electric corporations.