Bill Text: NY A06122 | 2011-2012 | General Assembly | Introduced
Bill Title: Creates the renewable energy development and jobs act of 2011 authorizing renewable energy credits for the New York power authority and the Long Island power authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-04 - referred to energy [A06122 Detail]
Download: New_York-2011-A06122-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6122 2011-2012 Regular Sessions I N A S S E M B L Y March 8, 2011 ___________ Introduced by M. of A. HEVESI -- read once and referred to the Committee on Energy AN ACT to amend the public service law and the public authorities law, in relation to the creation of renewable energy credits for retail electric providers, the New York power authority and the Long Island power authority THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act shall be known and may be cited as the "New York 2 renewable energy development and jobs act of 2011". 3 S 2. The public service law is amended by adding a new section 66-m to 4 read as follows: 5 S 66-M. PROCUREMENT OF RENEWABLE ENERGY CREDITS. 1. AS USED IN THIS 6 SECTION: 7 (A) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS A PAYMENT OF A DEFINED 8 DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE COMMISSION, THAT 9 A RETAIL ELECTRIC SUPPLIER SHALL SUBMIT TO THE COMMISSION IN ORDER TO 10 COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF 11 THIS SECTION. 12 (B) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE 13 POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU- 14 SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF 15 THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES. 16 (C) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEWA- 17 BLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM 18 THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION 19 COMPANY METER. 20 (D) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY 21 THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE. 22 (E) "NEW ENERGY TECHNOLOGIES" MEANS ALL METHODS USED TO PRODUCE, 23 DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN COMMON COMMER- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00698-03-1 A. 6122 2 1 CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT 2 LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE. 3 (F) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF 4 FIFTEEN YEARS, FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS FROM AN 5 OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM. 6 (G) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING RENEWABLE ENER- 7 GY SYSTEM THAT IS ALSO A: 8 (I) RESIDENT OF NEW YORK STATE; 9 (II) LIMITED LIABILITY COMPANY ORGANIZED UNDER THE NEW YORK STATE 10 LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO 11 ARE NEW YORK STATE RESIDENTS; OR 12 (III) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW 13 YORK STATE NOT-FOR-PROFIT LAW. 14 (H) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC ENERGY 15 MEASURE IN KILOWATT HOURS PRODUCED FROM A QUALIFIED RENEWABLE ENERGY 16 SYSTEM. 17 (I) "QUALIFIED RENEWABLE ENERGY SYSTEM" SHALL MEAN A DISTRIBUTED 18 RENEWABLE ENERGY RESOURCE SYSTEM OR TECHNOLOGY AS DETERMINED BY THE 19 COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN PARAGRAPH (B) OF 20 THIS SUBDIVISION THAT MAY RESULT IN THE COST EFFECTIVE PRODUCTION OF 21 ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN CONSTRUCTED AND IS 22 OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS SECTION, THEY 23 SHALL INCLUDE: 24 (I) WIND; 25 (II) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS; 26 (III) SOLAR THERMAL; 27 (IV) GEOTHERMAL; 28 (V) FUEL CELL TECHNOLOGY; 29 (VI) HYDRO-KINETIC, INCLUDING APPROVED RIVER OR TIDAL GENERATION 30 SYSTEMS; 31 (VII) HYDROELECTRIC; 32 (VIII) BIOMASS; 33 (IX) ANAEROBIC DIGESTION; AND 34 (X) LANDFILL GAS TO ENERGY SYSTEMS. 35 (J) "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI- 36 BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED RENEWABLE ENERGY 37 GENERATION. 38 (K) THE TERM "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING 39 AS SET FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW. 40 (L) "RETAIL ELECTRIC SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL 41 ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM- 42 ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A 43 PROVIDER OF LAST RESORT OR AN ENERGY SERVICE COMPANY APPROVED BY THE 44 COMMISSION FOR SUCH PURPOSE. 45 (M) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENER- 46 ATION" MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY 47 A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS THAN ONE 48 HUNDRED KILOWATTS IN SIZE. 49 2. (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE RECS BY AN 50 ADDITIONAL ANNUAL PERCENTAGE POINT OF SUCH SUPPLIER'S TOTAL ELECTRIC 51 SALES IN EACH COMPLIANCE YEAR: 52 COMPLIANCE ANNUAL 53 YEAR REQUIREMENT 54 2015 0.05% 55 2016 0.13% A. 6122 3 1 2017 0.15% 2 2018 0.17% 3 2019 0.20% 4 2020 0.23% 5 2021 0.27% 6 2022 0.32% 7 2023 0.38% 8 2024 0.44% 9 2025 0.52% 10 2026 0.61% 11 2027 0.72% 12 2028 0.85% 13 (B) IF BY THE YEAR TWO THOUSAND TWENTY-EIGHT NEW YORK STATE HAS NOT 14 MET ITS GOAL OF THIRTY-FIVE PERCENT ELECTRIC ENERGY FROM RENEWABLE ENER- 15 GY SOURCES, THE PROGRAM ESTABLISHED IN THIS SECTION SHALL BE EXTENDED 16 AND SHALL GROW AT A RATE OF 0.85 PERCENTAGE POINTS UNTIL THIS GOAL IS 17 ACHIEVED. 18 (C) AT LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE 19 TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF 20 RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE 21 ENERGY GENERATION. IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT- 22 ER THE COMMISSION SHALL UNDERTAKE A REVIEW CONCERNING THE RETAIL ELEC- 23 TRIC SUPPLIER'S ABILITY TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL 24 OBLIGATIONS THROUGH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE 25 ENERGY GENERATION. IF THE COMMISSION CONCLUDES THAT A RETAIL ELECTRIC 26 SUPPLIER CANNOT REASONABLY MEET THIS OBLIGATION, THE COMMISSION MAY 27 ALLOW A RETAIL ELECTRIC SUPPLIER TO APPLY FOR A WAIVER TO PROCURE POWER 28 PURCHASE AGREEMENTS FROM OTHER SOURCES. 29 (D) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED 30 RENEWABLE ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING POWER 31 PURCHASE AGREEMENTS HAVE EXPIRED. 32 (E) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR OBLIGATIONS ESTABLISHED 33 BY THE COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT 34 OF RECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED QUALIFIED RENEWA- 35 BLE ENERGY GENERATION. 36 (F) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL 37 ESTABLISH AN AUTOMATED REC TRACKING SYSTEM WITHIN ONE HUNDRED EIGHTY 38 DAYS OF THE EFFECTIVE DATE OF THIS SECTION. EACH QUALIFYING OWNER SHALL 39 APPLY TO THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY TO 40 CERTIFY THE AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION THEY WILL BE 41 ABLE TO ACHIEVE AND TO RECEIVE A RENEWABLE ENERGY CREDIT CERTIFICATE. 42 THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL 43 CONSULT WITH THE NEW YORK INDEPENDENT SYSTEMS OPERATOR TO VERIFY THE 44 AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION PRODUCED. ONCE THIS 45 AMOUNT IS VERIFIED, THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT 46 AUTHORITY SHALL ISSUE THE QUALIFYING OWNER RECS PROPORTIONAL TO THE 47 AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION PRODUCED. EACH REC 48 CERTIFICATE SHALL HAVE AN ELECTRONIC IDENTIFICATION NUMBER TO ASSIST IN 49 THE TRACKING. EACH ISSUANCE, SALE, AND TRADE OF A REC SHALL BE RECORDED 50 IN THE TRACKING SYSTEM. 51 (G) RECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS ESTAB- 52 LISHED IN THIS SUBDIVISION IN THE COMPLIANCE YEAR IN WHICH THEY ARE 53 CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS. 54 3. (A) IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR 55 OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION, THEY SHALL A. 6122 4 1 BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING AN ALTERNATIVE 2 COMPLIANCE PAYMENT IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED, 3 HOWEVER, THAT THE COMMISSION SHALL SET SUCH PAYMENT AT A LEVEL THAT 4 SHALL STIMULATE THE DEVELOPMENT OF NEW QUALIFIED RENEWABLE ENERGY GENER- 5 ATION NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVISION 6 TWO OF THIS SECTION. 7 (B) NO LATER THAN DECEMBER FIRST, TWO THOUSAND FOURTEEN, THE COMMIS- 8 SION SHALL ESTABLISH AN ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE THROUGH 9 THE YEAR TWO THOUSAND FIFTEEN. THE COMMISSION SHALL SET ALTERNATIVE 10 COMPLIANCE PAYMENT LEVELS NO LATER THAN JANUARY THIRTY-FIRST OF EACH 11 YEAR THEREAFTER TO SERVE AS THE PAYMENT LEVEL FOR THE YEAR IN WHICH IT 12 IS SET. THE COMMISSION SHALL REVIEW SUCH SCHEDULE TO ENSURE THAT THE 13 PAYMENTS ARE SET AT A LEVEL TO STIMULATE THE DEVELOPMENT OF NEW QUALI- 14 FIED RENEWABLE ENERGY GENERATION IN ACCORDANCE WITH PARAGRAPH (A) OF 15 THIS SUBDIVISION. ONCE SUCH SCHEDULE IS ESTABLISHED, THE COMMISSION MAY 16 ADOPT, AFTER APPROPRIATE NOTICE AND OPPORTUNITY FOR PUBLIC COMMENT, AN 17 INCREASE IN ALTERNATIVE COMPLIANCE PAYMENTS, PROVIDED THAT THE COMMIS- 18 SION SHALL NOT REDUCE PREVIOUSLY ESTABLISHED LEVELS OF PAYMENTS, NOR 19 SHALL THE COMMISSION PROVIDE RELIEF FROM THE OBLIGATION OF PAYMENT OF 20 THE ALTERNATIVE COMPLIANCE PAYMENTS BY THE RETAIL ELECTRIC SUPPLIERS IN 21 ANY FORM. 22 (C) THE COMMISSION SHALL MAKE AVAILABLE ALL MONIES FROM AMOUNTS 23 COLLECTED THROUGH SUCH ALTERNATIVE COMPLIANCE PAYMENTS FOR RENEWABLE 24 PROGRAMS AND INITIATIVES TO BE ADMINISTERED AND FUNDED BY THE NEW YORK 25 STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. 26 4. (A) NO LATER THAN DECEMBER FIRST, TWO THOUSAND FOURTEEN, THE 27 COMMISSION SHALL ESTABLISH A TEMPLATE FOR POWER PURCHASE AGREEMENTS TO 28 BE USED BY RETAIL ELECTRIC SUPPLIERS FOR THEIR PROCUREMENT OF RECS FOR 29 THE PURPOSE OF FULFILLING THEIR OBLIGATIONS ESTABLISHED IN SUBDIVISION 30 TWO OF THIS SECTION. 31 (B) EACH RETAIL ELECTRIC SUPPLIER SHALL, NOT LATER THAN JANUARY FIRST, 32 TWO THOUSAND FIFTEEN, SUBMIT FOR COMMISSION REVIEW AND APPROVAL A SOLIC- 33 ITATION PLAN THAT SHALL INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICIT- 34 ING PROPOSALS FOR RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENER- 35 ATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION, 36 FOR THE PURPOSE OF FULFILLING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION 37 TWO OF THIS SECTION. THE ELECTRIC DISTRIBUTION COMPANY'S SOLICITATION 38 PLAN SHALL BE DESIGNED TO FOSTER A DIVERSITY OF RENEWABLE PROJECT SIZES 39 AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES SUBJECT TO 40 COST-EFFECTIVENESS CONSIDERATIONS. 41 (C) EACH RETAIL ELECTRIC SUPPLIER SHALL EXECUTE ITS APPROVED SOLICITA- 42 TION PLAN NO LATER THAN THIRTY DAYS AFTER COMMISSION APPROVAL AND SUBMIT 43 FOR COMMISSION REVIEW AND APPROVAL ITS PREFERRED PROCUREMENT PLAN 44 COMPRISED OF ANY PROPOSED POWER PURCHASE AGREEMENTS FOR RECS ASSOCIATED 45 WITH QUALIFIED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL 46 DISTRIBUTED RENEWABLE ENERGY GENERATION. THE COMMISSION MAY APPROVE, 47 REJECT OR MODIFY AN APPLICATION FOR APPROVAL OF SUCH PLAN, PROVIDED THAT 48 THE COMMISSION SHALL APPROVE SUCH PLAN IF THE COMMISSION FINDS THAT: (I) 49 THE SOLICITATION AND EVALUATION CONDUCTED BY THE ELECTRIC DISTRIBUTION 50 COMPANY WAS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND TRANSPARENT 51 PROCESS; (II) APPROVAL OF THE PROCUREMENT PLAN WOULD RESULT IN THE 52 ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO THE 53 PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENER- 54 ATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION AT 55 THE LOWEST REASONABLE COST; AND (III) SUCH PROCUREMENT PLAN SATISFIES 56 OTHER CRITERIA AS MAY BE ESTABLISHED IN THE APPROVED SOLICITATION PLAN. A. 6122 5 1 IF THE COMMISSION DOES NOT APPROVE, REJECT OR MODIFY THE DISTRIBUTION 2 COMPANY'S APPLICATION WITHIN SIXTY DAYS, THE PROCUREMENT PLAN SHALL BE 3 DEEMED APPROVED. 4 (D) NO LATER THAN JANUARY FIRST, TWO THOUSAND FIFTEEN, EACH RETAIL 5 ELECTRIC SUPPLIER SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL 6 A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCURE- 7 MENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY 8 GENERATION ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. 9 5. EACH RETAIL ELECTRIC SUPPLIER SHALL BE ENTITLED TO RECOVER THE 10 PRUDENTLY INCURRED COSTS OF COMPLYING WITH ITS OBLIGATIONS ESTABLISHED 11 IN SUBDIVISION TWO OF THIS SECTION, AS DETERMINED BY THE COMMISSION. 12 6. NO LATER THAN JANUARY FIRST, TWO THOUSAND FIFTEEN, THE COMMISSION 13 SHALL ESTABLISH AN INCENTIVE PROGRAM FOR RETAIL ELECTRIC SUPPLIERS BASED 14 ON SUCH COMPANIES' ACHIEVEMENT OF THEIR OBLIGATIONS, AND EXEMPLARY 15 PERFORMANCE BEYOND SUCH OBLIGATIONS, ESTABLISHED IN SUBDIVISION TWO OF 16 THIS SECTION (A) IN A COST-EFFECTIVE MANNER THAT ACHIEVES THE OBLI- 17 GATIONS AT LEAST COST AND AVOIDS LONG-TERM COSTS TO THE TRANSMISSION AND 18 DISTRIBUTION SYSTEM; (B) PROVIDES ENHANCED ELECTRICITY RELIABILITY WITH- 19 IN COMPANIES' SERVICE TERRITORIES; AND (C) MINIMIZES PEAK LOAD IN 20 CONSTRAINED AREAS. 21 7. NO LATER THAN JANUARY FIRST, TWO THOUSAND FIFTEEN, THE COMMISSION 22 SHALL ESTABLISH THE TERMS AND CONDITIONS THAT SHALL BE APPLICABLE TO 23 POWER PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC SUPPLIERS FOR 24 THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWA- 25 BLE ENERGY GENERATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' 26 OBLIGATIONS PERTAINING TO RECS ASSOCIATED WITH SUCH GENERATION ESTAB- 27 LISHED IN SUBDIVISION TWO OF THIS SECTION. SUCH TERMS AND CONDITIONS 28 SHALL INCLUDE A TARIFF, AS ESTABLISHED BY THE COMMISSION, FOR THE 29 PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE 30 ENERGY GENERATION, TO BE PAID BY ELECTRIC DISTRIBUTION COMPANIES TO 31 APPLICABLE OWNERS OF QUALIFIED RENEWABLE ENERGY TECHNOLOGIES. THE 32 COMMISSION SHALL REVIEW SUCH TARIFFS EVERY TWO YEARS AND ADJUST AS 33 NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO RECS ASSOCIATED WITH 34 SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION ESTABLISHED IN 35 SUBDIVISION TWO OF THIS SECTION; PROVIDED, HOWEVER, THAT SUCH ADJUST- 36 MENTS SHALL NOT GO BELOW THE ORIGINALLY SET TARIFF RATE. 37 8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY ENTERED INTO BEFORE 38 JANUARY FIRST, TWO THOUSAND FIFTEEN BY RETAIL ELECTRIC SUPPLIERS THAT 39 ARE NOT ELECTRIC DISTRIBUTION COMPANIES SHALL BE EXEMPT FROM THE OBLI- 40 GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. 41 9. EACH RETAIL ELECTRIC SUPPLIER SHALL BE PERMITTED TO RESELL OR 42 OTHERWISE DISPOSE OF RECS AND ANY ASSOCIATED QUALIFIED RENEWABLE ENERGY 43 GENERATION PROCURED BY SUCH COMPANY THAT IS IN EXCESS OF ITS OBLIGATIONS 44 ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION, PROVIDED THE COMPANY 45 SHALL NET THE COST OF PAYMENTS MADE FOR RECS AND ANY ASSOCIATED QUALI- 46 FIED RENEWABLE ENERGY GENERATION UNDER POWER PURCHASE AGREEMENTS AGAINST 47 THE PROCEEDS OF THE SALE OF RECS AND ANY ASSOCIATED QUALIFIED RENEWABLE 48 ENERGY GENERATION, AND THE DIFFERENCE SHALL BE CREDITED OR CHARGED TO 49 THE ELECTRIC DISTRIBUTION COMPANY'S CUSTOMERS THROUGH A RECONCILING 50 COMPONENT OF ELECTRIC RATES, AS DETERMINED BY THE COMMISSION. 51 10. (A) NO LATER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND NO 52 LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO 53 THOUSAND TWENTY-EIGHT, THE COMMISSION SHALL REPORT TO THE GOVERNOR, 54 SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPO- 55 RARY PRESIDENT OF THE SENATE, THE MAJORITY LEADER OF THE SENATE, THE 56 MINORITY LEADER OF THE SENATE, CHAIRS OF THE SENATE AND ASSEMBLY ENERGY A. 6122 6 1 COMMITTEES, AND THE RANKING MINORITY MEMBERS OF THE SENATE AND ASSEMBLY 2 ENERGY COMMITTEES, THE CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE 3 ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A REPORT REGARDING THE PROGRESS 4 OF EACH RETAIL ELECTRIC SUPPLIER IN MEETING ITS OBLIGATIONS ESTABLISHED 5 IN SUBDIVISION TWO OF THIS SECTION. 6 (B) EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION THE 7 INFORMATION NECESSARY TO FULFILL THE COMMISSION'S OBLIGATIONS PURSUANT 8 TO THIS SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL REPORTING OBLIGATION 9 AND PROCESS TO BE ESTABLISHED BY THE COMMISSION. 10 (C) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION 11 SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC SUPPLIER 12 FOR THE PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL CALENDAR YEARS 13 TO DATE: (I) THE ACTUAL NUMBER OF MEGAWATT-HOURS OF QUALIFIED RENEWABLE 14 ENERGY GENERATION SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS AND THE 15 TOTAL NUMBER OF MEGAWATT-HOURS SOLD AT RETAIL TO NEW YORK END-USE 16 CUSTOMERS AND THE RATE IMPACT TO END-USE CUSTOMERS; (II) THE NUMBER OF 17 RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION THAT WERE 18 RETIRED FOR THE PURPOSES OF MEETING THE SUPPLIER'S OBLIGATIONS ESTAB- 19 LISHED IN SUBDIVISION TWO OF THIS SECTION; AND (III) THE AMOUNT, IF ANY, 20 OF ALTERNATIVE COMPLIANCE PAYMENTS MADE. 21 (D) SUCH REPORT SHALL ALSO INCLUDE, FOR EACH SMALL RETAIL ELECTRIC 22 SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY: (I) THE NUMBER OF 23 RECS EACH ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY 24 GENERATION AND DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY 25 EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (II) THE NUMBER OF SUCH RECS 26 PROCURED THROUGH POWER PURCHASE AGREEMENTS AND THE ELECTRIC DISTRIBUTION 27 COMPANY'S OWNERSHIP OF QUALIFIED RENEWABLE ENERGY GENERATION, RESPEC- 28 TIVELY; AND (III) THE AMOUNT PAID TO QUALIFIED RENEWABLE ENERGY GENERA- 29 TORS THROUGH TARIFFS ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF THIS 30 SECTION FOR RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE 31 ENERGY GENERATION. 32 S 3. Section 1005 of the public authorities law is amended by adding a 33 new subdivision 17 to read as follows: 34 17. A. FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL 35 HAVE THE FOLLOWING MEANINGS: 36 (I) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS A PAYMENT OF A DEFINED 37 DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE PUBLIC SERVICE 38 COMMISSION, THAT THE AUTHORITY SHALL SUBMIT TO THE PUBLIC SERVICE 39 COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN 40 PARAGRAPH B OF THIS SUBDIVISION. 41 (II) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE 42 POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU- 43 SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF 44 THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES. 45 (III) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEW- 46 ABLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM 47 THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION 48 COMPANY METER. 49 (IV) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY 50 THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE. 51 (V) "NEW ENERGY TECHNOLOGIES" MEANS ALL METHODS USED TO PRODUCE, 52 DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN COMMON COMMER- 53 CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT 54 LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE. A. 6122 7 1 (VI) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF 2 FIFTEEN YEARS, FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS FROM AN 3 OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM. 4 (VII) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING RENEWABLE 5 ENERGY SYSTEM THAT IS ALSO A: 6 (A) RESIDENT OF NEW YORK STATE; 7 (B) LIMITED LIABILITY COMPANY ORGANIZED UNDER THE NEW YORK STATE 8 LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO 9 ARE NEW YORK STATE RESIDENTS; OR 10 (C) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW YORK 11 STATE NOT-FOR-PROFIT LAW. 12 (VIII) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC 13 ENERGY MEASURE IN KILOWATT HOURS PRODUCED FROM A QUALIFIED RENEWABLE 14 ENERGY SYSTEM. 15 (IX) "QUALIFIED RENEWABLE ENERGY SYSTEM" SHALL MEAN A DISTRIBUTED 16 RENEWABLE ENERGY RESOURCE SYSTEM OR TECHNOLOGY AS DETERMINED BY THE 17 PUBLIC SERVICE COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN 18 SUBPARAGRAPH (II) OF THIS PARAGRAPH THAT MAY RESULT IN THE COST EFFEC- 19 TIVE PRODUCTION OF ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN 20 CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS 21 SUBDIVISION, THEY SHALL INCLUDE: 22 (A) WIND; 23 (B) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS; 24 (C) SOLAR THERMAL; 25 (D) GEOTHERMAL; 26 (E) FUEL CELL TECHNOLOGY; 27 (F) HYDRO-KINETIC, INCLUDING APPROVED RIVER OR TIDAL GENERATION 28 SYSTEMS; 29 (G) HYDROELECTRIC; 30 (H) BIOMASS; 31 (I) ANAEROBIC DIGESTION; AND 32 (J) LANDFILL GAS TO ENERGY SYSTEMS. 33 (X) "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI- 34 BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED RENEWABLE ENERGY 35 GENERATION. 36 (XI) THE TERM "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING 37 AS SET FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW. 38 (XII) "RETAIL ELECTRIC SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL 39 ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM- 40 ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A 41 PROVIDER OF LAST RESORT OR AN ENERGY SERVICE COMPANY APPROVED BY THE 42 PUBLIC SERVICE COMMISSION FOR SUCH PURPOSE. 43 (XIII) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY 44 GENERATION" MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION 45 PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS 46 THAN ONE HUNDRED KILOWATTS IN SIZE. 47 B. (I) THE AUTHORITY SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM 48 CONTRACTS OF A MINIMUM OF FIFTEEN YEARS OR PAYMENT TO THE COMMISSION FOR 49 COMPLIANCE, RECS ASSOCIATED WITH GIGAWATT-HOURS OF QUALIFIED RENEWABLE 50 ENERGY GENERATION IN ACCORDANCE WITH THE FOLLOWING SCHEDULE: 51 COMPLIANCE ANNUAL 52 YEAR REQUIREMENT 53 2015 0.25% 54 2016 0.40% 55 2017 0.55% 56 2018 0.70% A. 6122 8 1 2019 0.90% 2 2020 1.10% 3 2021 1.30% 4 2022 1.50% 5 2023 1.75% 6 2024 2.00% 7 2025 2.50% 8 2026 3.00% 9 2027 3.50% 10 2028 4.50% 11 (II) IF BY THE YEAR TWO THOUSAND TWENTY-EIGHT NEW YORK STATE HAS NOT 12 MET ITS GOAL OF THIRTY-FIVE PERCENT ELECTRIC ENERGY FROM RENEWABLE ENER- 13 GY SOURCES, THE PROGRAM ESTABLISHED IN SECTION SIXTY-SIX-M OF THE PUBLIC 14 SERVICE LAW SHALL BE EXTENDED AND SHALL GROW AT A RATE OF 0.85 PERCENT- 15 AGE POINTS UNTIL THIS GOAL IS ACHIEVED. 16 (III) AT LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE 17 TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF 18 RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE 19 ENERGY GENERATION. IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT- 20 ER, THE INDEPENDENT AUTHORITY BUDGET OFFICE, IN CONSULTATION WITH THE 21 COMMISSION, SHALL UNDERTAKE A REVIEW CONCERNING THE AUTHORITIES' ABILITY 22 TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL OBLIGATIONS THROUGH SMALL 23 RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IF THE 24 INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE COMMIS- 25 SION, CONCLUDES THAT THE AUTHORITY CANNOT REASONABLY MEET THIS OBLI- 26 GATION, THE INDEPENDENT AUTHORITIES BUDGET OFFICE MAY ALLOW THE AUTHORI- 27 TY TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER 28 SOURCES. 29 (IV) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED 30 RENEWABLE ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING POWER 31 PURCHASE AGREEMENTS HAVE EXPIRED. 32 (V) RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH 33 THE REQUIREMENTS OF THE RENEWABLE PORTFOLIO STANDARD MAY USE A PORTION 34 OF THE RECS PROCURED UNDER THIS ACT TOWARD THEIR RENEWABLE PORTFOLIO 35 STANDARD REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED UNDER 36 THIS ACT MAY BE APPLIED TOWARD A RETAIL ELECTRIC SUPPLIER'S RENEWABLE 37 PORTFOLIO STANDARD REQUIREMENT. 38 (VI) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS PARA- 39 GRAPH THROUGH THE PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM THE 40 ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION. 41 (VII) THE AUTHORITY SHALL TRACK RECS THROUGH THE AUTOMATED REC TRACK- 42 ING SYSTEM ESTABLISHED PURSUANT TO PARAGRAPH (F) OF SUBDIVISION TWO OF 43 SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW. 44 (VIII) RECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS 45 ESTABLISHED IN THIS SUBDIVISION IN THE COMPLIANCE YEAR IN WHICH THEY ARE 46 CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS. 47 (IX) IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR 48 OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION, THEY SHALL 49 BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING AN ALTERNATIVE 50 COMPLIANCE PAYMENT IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED, 51 HOWEVER, THAT THE COMMISSION SHALL SET SUCH PAYMENT AT A LEVEL THAT 52 SHALL STIMULATE THE DEVELOPMENT OF NEW QUALIFIED RENEWABLE ENERGY GENER- 53 ATION NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVISION 54 TWO OF THIS SECTION. 55 C. (I) NO LATER THAN DECEMBER FIRST, TWO THOUSAND FIFTEEN, THE AUTHOR- 56 ITY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, A. 6122 9 1 SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPO- 2 RARY PRESIDENT OF THE SENATE, THE MAJORITY LEADER OF THE SENATE, THE 3 MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMU- 4 NICATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY 5 AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMIT- 6 TEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND 7 CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL 8 POST ON ITS WEBSITE, A SOLICITATION PLAN THAT SHALL INCLUDE A TIMETABLE 9 AND METHODOLOGY FOR SOLICITING PROPOSALS FOR RECS ASSOCIATED WITH QUALI- 10 FIED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED 11 CUSTOMER-SIDED RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF FULFILL- 12 ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION. 13 (II) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN NO LATER THAN 14 THIRTY DAYS AND SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET 15 OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEM- 16 BLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, 17 MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMU- 18 NICATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY 19 AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMIT- 20 TEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND 21 CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL 22 POST ON ITS WEBSITE, ITS PROCUREMENT PLAN COMPRISED OF ANY POWER 23 PURCHASE AGREEMENTS FOR RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED 24 CUSTOMER-SIDED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL 25 DISTRIBUTED RENEWABLE ENERGY GENERATION. THE INDEPENDENT AUTHORITIES 26 BUDGET OFFICE SHALL REVIEW SUCH PLAN TO ASSESS WHETHER IT IS THE RESULT 27 OF A FAIR, OPEN, COMPETITIVE AND TRANSPARENT PROCESS AND SHALL REPORT TO 28 THE GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, 29 TEMPORARY PRESIDENT OF THE SENATE, MINORITY LEADER OF THE SENATE, MAJOR- 30 ITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNI- 31 CATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND 32 TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, 33 THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR 34 OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY REGARDING THE 35 RESULTS OF SUCH ASSESSMENT. 36 (III) NO LATER THAN JANUARY FIRST, TWO THOUSAND FIFTEEN, THE AUTHORITY 37 SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, 38 SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY 39 PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER 40 OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT- 41 TEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI- 42 CATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING 43 MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE AND CHAIR OF THE RENEW- 44 ABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, 45 A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCURE- 46 MENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED 47 RENEWABLE ENERGY GENERATION ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVI- 48 SION. 49 D. (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND NO 50 LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO 51 THOUSAND TWENTY-EIGHT, THE AUTHORITY SHALL REPORT TO THE INDEPENDENT 52 AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, THE MINOR- 53 ITY LEADER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, 54 MAJORITY LEADER OF THE SENATE, THE MINORITY LEADER OF THE SENATE, CHAIR 55 OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, THE RANKING 56 MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, A. 6122 10 1 CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF 2 THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOM- 3 MITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A REPORT REGARD- 4 ING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B 5 OF THIS SUBDIVISION. 6 (II) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS PARAGRAPH 7 SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND 8 FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (A) THE NUMBER OF RECS 9 ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION RETIRED FOR THE 10 PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH 11 B OF THIS SUBDIVISION; (B) THE NUMBER OF SUCH RECS EACH ASSOCIATED WITH 12 SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION AND 13 RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY EQUIPMENT OF 14 ANY SIZE THAT WERE PROCURED; (C) THE NUMBER OF SUCH RECS PROCURED 15 THROUGH POWER PURCHASE AGREEMENTS AND THE AUTHORITY'S OWNERSHIP OF QUAL- 16 IFIED RENEWABLE ENERGY GENERATION, RESPECTIVELY; AND (D) THE AMOUNT PAID 17 TO QUALIFIED RENEWABLE ENERGY GENERATORS THROUGH TARIFFS FOR RECS ASSO- 18 CIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION. 19 S 4. Sections 1020-hh, 1020-ii and 1020-jj of the public authorities 20 law, as renumbered by chapter 433 of the laws of 2009, are renumbered 21 sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added 22 to read as follows: 23 S 1020-HH. PROCUREMENT OF RENEWABLE ENERGY CREDITS. 1. AS USED IN 24 THIS SECTION: 25 (A) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS A PAYMENT OF A DEFINED 26 DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE PUBLIC SERVICE 27 COMMISSION, THAT THE AUTHORITY SHALL SUBMIT TO THE PUBLIC SERVICE 28 COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN 29 SUBDIVISION TWO OF THIS SECTION. 30 (B) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE 31 POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU- 32 SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF 33 THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES. 34 (C) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEWA- 35 BLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM 36 THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION 37 COMPANY METER. 38 (D) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY 39 THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE. 40 (E) "NEW ENERGY TECHNOLOGIES" MEANS ALL METHODS USED TO PRODUCE, 41 DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN COMMON COMMER- 42 CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT 43 LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE. 44 (F) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF 45 FIFTEEN YEARS, FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS FROM AN 46 OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM. 47 (G) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING RENEWABLE ENER- 48 GY SYSTEM THAT IS ALSO A: 49 (I) RESIDENT OF NEW YORK STATE; 50 (II) LIMITED LIABILITY COMPANY ORGANIZED UNDER THE NEW YORK STATE 51 LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO 52 ARE NEW YORK STATE RESIDENTS; OR 53 (III) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW 54 YORK STATE NOT-FOR-PROFIT LAW. A. 6122 11 1 (H) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC ENERGY 2 MEASURE IN KILOWATT HOURS PRODUCED FROM A QUALIFIED RENEWABLE ENERGY 3 SYSTEM. 4 (I) "QUALIFIED RENEWABLE ENERGY SYSTEM" SHALL MEAN A DISTRIBUTED 5 RENEWABLE ENERGY RESOURCE SYSTEM OR TECHNOLOGY AS DETERMINED BY THE 6 PUBLIC SERVICE COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN 7 PARAGRAPH (B) OF THIS SUBDIVISION THAT MAY RESULT IN THE COST EFFECTIVE 8 PRODUCTION OF ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN 9 CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS 10 SECTION, THEY SHALL INCLUDE: 11 (I) WIND; 12 (II) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS; 13 (III) SOLAR THERMAL; 14 (IV) GEOTHERMAL; 15 (V) FUEL CELL TECHNOLOGY; 16 (VI) HYDRO-KINETIC, INCLUDING APPROVED RIVER OR TIDAL GENERATION 17 SYSTEMS; 18 (VII) HYDROELECTRIC; 19 (VIII) BIOMASS; 20 (IX) ANAEROBIC DIGESTION; AND 21 (X) LANDFILL GAS TO ENERGY SYSTEMS. 22 (J) "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI- 23 BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED RENEWABLE ENERGY 24 GENERATION. 25 (K) THE TERM "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING 26 AS SET FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW. 27 (L) "RETAIL ELECTRIC SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL 28 ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM- 29 ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A 30 PROVIDER OF LAST RESORT OR AN ENERGY SERVICE COMPANY APPROVED BY THE 31 PUBLIC SERVICE COMMISSION FOR SUCH PURPOSE. 32 (M) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENER- 33 ATION" MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY 34 A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS THAN ONE 35 HUNDRED KILOWATTS IN SIZE. 36 2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM 37 CONTRACTS OF A MINIMUM OF FIFTEEN YEARS OR PAYMENT TO THE PUBLIC SERVICE 38 COMMISSION FOR COMPLIANCE, RECS ASSOCIATED WITH GIGAWATT-HOURS OF QUALI- 39 FIED RENEWABLE ENERGY GENERATION IN ACCORDANCE WITH THE FOLLOWING SCHED- 40 ULE: 41 COMPLIANCE ANNUAL 42 YEAR REQUIREMENT 43 2015 0.25% 44 2016 0.40% 45 2017 0.55% 46 2018 0.70% 47 2019 0.90% 48 2020 1.10% 49 2021 1.30% 50 2022 1.50% 51 2023 1.75% 52 2024 2.00% 53 2025 2.50% 54 2026 3.00% A. 6122 12 1 2027 3.50% 2 2028 4.50% 3 (B) IF BY THE YEAR TWO THOUSAND TWENTY-EIGHT NEW YORK STATE HAS NOT 4 MET ITS GOAL OF THIRTY-FIVE PERCENT ELECTRIC ENERGY FROM RENEWABLE ENER- 5 GY SOURCES, THE PROGRAM ESTABLISHED IN SECTION SIXTY-SIX-M OF THE PUBLIC 6 SERVICE LAW SHALL BE EXTENDED AND SHALL GROW AT A RATE OF 0.85 PERCENT- 7 AGE POINTS UNTIL THIS GOAL IS ACHIEVED. 8 (C) AT LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE 9 TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF 10 RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE 11 ENERGY GENERATION. IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT- 12 ER, THE INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE 13 COMMISSION, SHALL UNDERTAKE A REVIEW CONCERNING THE AUTHORITIES ABILITY 14 TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL OBLIGATIONS THROUGH SMALL 15 RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IF THE 16 INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE COMMIS- 17 SION, CONCLUDES THAT THE AUTHORITY CANNOT REASONABLY MEET THIS OBLI- 18 GATION, THE INDEPENDENT AUTHORITIES BUDGET OFFICE MAY ALLOW THE AUTHORI- 19 TY TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER 20 SOURCES. 21 (D) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED 22 RENEWABLE ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING POWER 23 PURCHASE AGREEMENTS HAVE EXPIRED. 24 (E) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS SUBDI- 25 VISION THROUGH THE PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM 26 THE ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION. 27 (F) RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH 28 THE REQUIREMENTS OF THE RENEWABLE PORTFOLIO STANDARD MAY USE A PORTION 29 OF THE RECS PROCURED UNDER THIS ACT TOWARD THEIR RENEWABLE PORTFOLIO 30 STANDARD REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED UNDER 31 THIS ACT MAY BE APPLIED TOWARD A RETAIL ELECTRIC SUPPLIER'S RENEWABLE 32 PORTFOLIO STANDARD REQUIREMENT. 33 (G) THE AUTHORITY SHALL TRACK RECS THROUGH THE AUTOMATED REC TRACKING 34 SYSTEM ESTABLISHED PURSUANT TO PARAGRAPH (F) OF SUBDIVISION TWO OF 35 SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW. 36 (H) RECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS ESTAB- 37 LISHED IN THIS SUBDIVISION IN THE COMPLIANCE YEAR IN WHICH THEY ARE 38 CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS. 39 (I) IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR 40 OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION, THEY SHALL 41 BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING AN ALTERNATIVE 42 COMPLIANCE PAYMENT IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED, 43 HOWEVER, THAT THE COMMISSION SHALL SET SUCH PAYMENT AT A LEVEL THAT 44 SHALL STIMULATE THE DEVELOPMENT OF NEW QUALIFIED RENEWABLE ENERGY GENER- 45 ATION NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN THIS SUBDIVI- 46 SION. 47 (J) (I) NO LATER THAN DECEMBER FIRST, TWO THOUSAND FIFTEEN, THE 48 AUTHORITY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, 49 GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, 50 TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINOR- 51 ITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNI- 52 CATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND 53 TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, 54 THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR 55 OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON 56 ITS WEBSITE, A SOLICITATION PLAN THAT SHALL INCLUDE A TIMETABLE AND A. 6122 13 1 METHODOLOGY FOR SOLICITING PROPOSALS FOR RECS ASSOCIATED WITH QUALIFIED 2 RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED CUSTOM- 3 ER-SIDED RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF FULFILLING ITS 4 OBLIGATIONS ESTABLISHED IN PARAGRAPH (C) OF THIS SUBDIVISION. 5 (II) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL 6 SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER 7 OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF 8 THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE 9 SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, 10 RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS 11 COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY 12 MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE 13 ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, ITS 14 PROCUREMENT PLAN COMPRISED OF ANY POWER PURCHASE AGREEMENTS FOR RECS 15 ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY 16 GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENER- 17 ATION. THE INDEPENDENT AUTHORITIES BUDGET OFFICE SHALL REVIEW SUCH PLAN 18 TO ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND 19 TRANSPARENT PROCESS AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE 20 ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE 21 SENATE, MAJORITY LEADER OF THE SENATE, THE MINORITY LEADER OF THE 22 SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, 23 RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS 24 COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, RANKING MINORITY 25 MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE 26 ENERGY SUBCOMMITTEE IN THE ASSEMBLY REGARDING THE RESULTS OF SUCH 27 ASSESSMENT. 28 (III) NO LATER THAN JANUARY FIRST, TWO THOUSAND FIFTEEN, THE AUTHORITY 29 SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, 30 SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY 31 PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER 32 OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT- 33 TEE, RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS 34 COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, RANKING MINORITY 35 MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE 36 ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A 37 PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCUREMENT 38 OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWA- 39 BLE ENERGY GENERATION ESTABLISHED IN PARAGRAPH (C) OF THIS SUBDIVISION. 40 (K) (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND NO 41 LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO 42 THOUSAND TWENTY-EIGHT, THE AUTHORITY SHALL REPORT TO THE INDEPENDENT 43 AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY 44 LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY 45 LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE 46 ENERGY AND TELECOMMUNICATIONS COMMITTEE, RANKING MINORITY MEMBER OF THE 47 SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY 48 ENERGY COMMITTEE, RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMIT- 49 TEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND 50 SHALL POST ON ITS WEBSITE, A REPORT REGARDING ITS PROGRESS IN MEETING 51 ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH (C) OF THIS SUBDIVISION. 52 (II) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS PARAGRAPH 53 SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND 54 FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (A) THE NUMBER OF RECS 55 ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION RETIRED FOR THE 56 PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH A. 6122 14 1 (C) OF THIS SUBDIVISION; (B) THE NUMBER OF SUCH RECS EACH ASSOCIATED 2 WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION 3 AND RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY EQUIPMENT 4 OF ANY SIZE THAT WERE PROCURED; (C) THE NUMBER OF SUCH RECS PROCURED 5 THROUGH POWER PURCHASE AGREEMENTS AND THE AUTHORITY'S OWNERSHIP OF QUAL- 6 IFIED RENEWABLE ENERGY GENERATION, RESPECTIVELY; AND (D) THE AMOUNT PAID 7 TO QUALIFIED RENEWABLE ENERGY GENERATORS THROUGH TARIFFS FOR RECS ASSO- 8 CIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION. 9 S 5. If any provision of this act is, for any reason, declared uncon- 10 stitutional or invalid, in whole or in part, by any court of competent 11 jurisdiction, such portion shall be deemed severable, and such unconsti- 12 tutionality or invalidity shall not affect the validity of the remaining 13 provisions of this act, which remaining provisions shall continue in 14 full force and effect. 15 S 6. This act shall take effect immediately; provided, however, that 16 this act shall expire and be deemed repealed on the date the commission- 17 er of the public service commission notifies the legislative bill draft- 18 ing commission of the occurrence of the implementation of a substantive- 19 ly similar federal program.