S T A T E   O F   N E W   Y O R K
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                                   2571
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 Introduced by M. of A. PAULIN, LUPARDO, MOSLEY -- read once and referred
   to the Committee on Energy
 
 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:
   § 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:
   (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06150-01-7

 A. 2571                             2
 
   (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
 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.

 A. 2571                             3
 
   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.
   §  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.