NY State Senate Bill 2009-S2715

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to energy and telecommunications
Jun 08, 2009	print number 2715a
Jun 08, 2009	amend and recommit to energy and telecommunications
Feb 27, 2009	referred to energy and telecommunications

Bill Amendments

Original

A (Active)

2009-S2715 - Details

See Assembly Version of this Bill:: A187
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §66-m, Pub Serv L

2009-S2715 - Summary

Requires certain providers of electric service to purchase electricity from eligible electric generators; establishes a rate schedule for certain renewable energy projects; prescribes the powers and duties of certain state agencies and officials; and requires a report to the governor and the legislature concerning the effect of the purchase by providers of electric service of electricity generated from renewable energy sources.

2009-S2715 - Sponsor Memo

                                 BILL NUMBER:  S2715

 TITLE OF BILL :
An act to amend the public service law, in relation to requiring
certain providers of electric service to purchase electricity from
eligible electric generators; establishing a rate schedule for certain
renewable energy projects; prescribing the powers and duties of
certain state agencies and officials; and requiring a report to the
governor and the legislature concerning the effect of the purchase by
providers of electric service of electricity generated from renewable
energy sources


 PURPOSE :
In order to encourage the most rapid and efficient installation of
electricity generators powered by renewable sources, this bill
establishes a rate schedule for mandatory purchase agreements between
utilities and qualified renewable energy generators. The rate schedule
provides a guaranteed above market rate of return for the first twenty
years after installation to provide strong incentives for early
adoption. The rate schedule will be adjusted on a bi-annual basis by
the Public Service Commission to ensure an optimal level of continued
development.

 SUMMARY OF PROVISIONS :
This legislation adds a new section, 66-m, to the public service law.

 JUSTIFICATION :
To ensure the continued prosperity of New York State and the United
States generally, we must break our dependence on imported oil and the
pollution, price-spikes and political instability that come with it.
Rapid installation of renewable electricity generating equipment is
the most efficient means of achieving this goal. This bill establishes
incentives in the form of mandatory purchase agreements with utility
companies that reward early installation of renewable energy
generation equipment and guarantee a long-term return on investment.
The program offers different rate schedules for the various modes of
renewable generation allowing small entrepreneurs to compete on even
terms with larger companies.

The current regime of incentive programs for renewable energy
generation in New York State has not significantly increased the
amount of renewable energy generated.

Similar feed-in tariff legislation passed in Germany resulted in a
doubling of the renewable energy generating capacity in only four
years and the German Government estimates that they will generate
12.5% of the nation's energy by 2010 and 20% by 2020.

New York has the opportunity to be a national leader in the generation
of renewable electricity and to guarantee economic prosperity through
the development of new green jobs. This legislation can be the first
step toward reaching those goals and ensuring the less expensive and
cleaner power we need for the future.

 LEGISLATIVE HISTORY :
This is a new bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S2715 - Bill Text download pdf

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

                                  2715

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 27, 2009
                               ___________

Introduced  by Sen. THOMPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN ACT to amend the public service law, in relation to requiring certain
  providers  of  electric  service to purchase electricity from eligible
  electric generators; establishing a rate schedule for certain  renewa-
  ble  energy  projects;  prescribing  the  powers and duties of certain
  state agencies and officials; and requiring a report to  the  governor
  and the legislature concerning the effect of the purchase by providers
  of  electric  service  of  electricity generated from renewable energy
  sources

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

  Section  1.  Legislative  intent  and purpose. It is the intent of the
legislature to enable the  rapid  and  sustainable  development  of  the
state's  abundant renewable energy resources for the clean generation of
electricity and to allow all New York citizens to participate in renewa-
ble electricity generation.
  Doing so will reduce the volatility of future electricity  prices  and
the  long-term  costs  of  electricity,  and  it will have the effect of
protecting the  state's  natural  resources,  including  protecting  its
atmosphere from air pollution and its climate from global warming.
  Further,  such measures shall place New York at the forefront of North
America's renewable energy revolution, stimulating  the  development  of
new jobs, technologies, and industry within the state and creating a New
York marketplace for the development of renewable energy.
  S 2. This act shall be known and may be cited as the "New York renewa-
ble energy sources act".
  S 3. The public service law is amended by adding a new section 66-m to
read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01287-01-9

S. 2715                             2

  S  66-M.    RENEWABLE  ENERGY  RESOURCES  TARIFF. 1.   AS USED IN THIS
SECTION: (A) "ADEQUATE RENEWABLE ENERGY DEVELOPMENT"  MEANS  A  RATE  OF
DEVELOPMENT  NECESSARY TO ACCOMPLISH THE RENEWABLE ENERGY OBJECTIVES AND
STANDARDS AS DETERMINED BY THE COMMISSION AND WHICH SHALL  REQUIRE  EACH
ELECTRIC  UTILITY  SHALL MAKE A GOOD FAITH EFFORT TO GENERATE OR PROCURE
SUFFICIENT ELECTRICITY GENERATED BY AN  ELIGIBLE  ENERGY  TECHNOLOGY  TO
PROVIDE  ITS RETAIL CONSUMERS, OR THE RETAIL CUSTOMERS OF A DISTRIBUTION
UTILITY TO  WHICH  THE  ELECTRIC  UTILITY  PROVIDES  WHOLESALE  ELECTRIC
SERVICE, SO THAT COMMENCING IN TWO THOUSAND TEN, AT LEAST ONE PERCENT OF
THE  ELECTRIC  UTILITY'S TOTAL RETAIL ELECTRIC SALES TO RETAIL CUSTOMERS
IN NEW YORK IS GENERATED  BY  ELIGIBLE  ENERGY  TECHNOLOGIES  AND  SEVEN
PERCENT  OF THE ELECTRIC UTILITY'S TOTAL RETAIL ELECTRIC SALES TO RETAIL
CUSTOMERS IN NEW YORK BY TWO THOUSAND FIFTEEN IS GENERATED  BY  ELIGIBLE
ENERGY TECHNOLOGIES;
  (B)  "AVERAGE  SPECIFIC  YIELD"  MEANS  THE AVERAGE NUMBER OF KILOWATT
HOURS PRODUCED DURING THE INITIAL FIVE YEARS OF PRODUCT OF A WIND ENERGY
CONVERSION  SYSTEM,  EXCLUDING  THE  MAXIMUM  AND   MINIMUM   YEARS   OF
PRODUCTION, DIVIDED BY THE ROTOR-SWEPT AREA IN SQUARE METERS;
  (C) "CAPACITY" MEANS THE NAMEPLATE CAPACITY OF A RENEWABLE ELECTRICITY
GENERATOR;
  (D)  "ELECTRIC  UTILITY"  MEANS  A  PUBLIC  UTILITY PROVIDING ELECTRIC
SERVICE, A GENERATION AND TRANSMISSION COOPERATIVE ELECTRIC ASSOCIATION,
A MUNICIPAL POWER AGENCY, OR A POWER DISTRICT PROVIDING  ELECTRICITY  TO
STATE RESIDENTS;
  (E)  "ELECTRICAL  DISTRIBUTION SYSTEM" MEANS THAT PORTION OF THE ELEC-
TRIC POWER SYSTEM OVER WHICH THE FEDERAL  ENERGY  REGULATORY  COMMISSION
DOES  NOT  HAVE  AUTHORITY TO INTERCONNECT ELECTRIC GENERATORS THAT SELL
ELECTRICITY IN INTRASTATE COMMERCE ONLY;
  (F) "ELIGIBLE ENERGY  TECHNOLOGY"  MEANS  AN  ENERGY  TECHNOLOGY  THAT
GENERATES ELECTRICITY FROM THE FOLLOWING RENEWABLE ENERGY SOURCES:
  (1) SOLAR;
  (2) WIND;
  (3) HYDROELECTRIC WITH A CAPACITY OF LESS THAN ONE HUNDRED MEGAWATTS;
  (4)  HYDROGEN, PROVIDED THAT AFTER JANUARY FIRST, TWO THOUSAND ELEVEN,
THE HYDROGEN MUST BE GENERATED FROM THE RESOURCES LISTED IN THIS CLAUSE;
OR
  (5) BIOMASS, WHICH INCLUDES,  WITHOUT  LIMITATION,  LANDFILL  GAS,  AN
ANAEROBIC  DIGESTER  SYSTEM,  AND  AN  ENERGY  RECOVERY FACILITY USED TO
CAPTURE THE HEAT VALUE OF MIXED MUNICIPAL SOLID WASTE OR  REFUSE-DERIVED
FUEL FROM MIXED MUNICIPAL SOLID WASTE AS A PRIMARY FUEL;
  (G)  "FACADE CLADDING PROJECT" MEANS A PROJECT IN WHICH A PHOTOVOLTAIC
DEVICE IS ATTACHED TO THE WALL OF A BUILDING;
  (H) "OPEN FIELD PROJECT" MEANS A PHOTOVOLTAIC DEVICE THAT HAS NO PHYS-
ICAL CONNECTION TO A BUILDING OTHER THAN  ELECTRIC  LINES  TO  TRANSPORT
ELECTRICITY;
  (I)  "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM INCIDENT SUNLIGHT BY MEANS OF THE PHOTOVOLTAIC  EFFECT,
WHETHER OR NOT THE DEVICE IS ABLE TO STORE THE ENERGY PRODUCED FOR LATER
USE;
  (J) "QUALIFYING OWNER" MEANS:
  (1) A NEW YORK STATE RESIDENT;
  (2)  A  LIMITED  LIABILITY COMPANY THAT IS ORGANIZED UNDER THE LIMITED
LIABILITY COMPANY LAW AND THAT IS MADE UP OF MEMBERS WHO  ARE  NEW  YORK
STATE RESIDENTS;
  (3)  A  NEW  YORK  NOT-FOR-PROFIT  ORGANIZATION  ORGANIZED  UNDER  THE
NOT-FOR-PROFIT CORPORATION LAW;

S. 2715                             3

  (4) A NEW YORK COOPERATIVE ASSOCIATION ORGANIZED UNDER THE COOPERATIVE
CORPORATIONS LAW INCLUDING A RURAL ELECTRIC COOPERATIVE ASSOCIATION OR A
GENERATION AND TRANSMISSION COOPERATIVE ON BEHALF OF AND AT THE  REQUEST
OF A MEMBER DISTRIBUTION UTILITY;
  (5)  A  NEW  YORK POLITICAL SUBDIVISION OR LOCAL GOVERNMENT INCLUDING,
BUT NOT LIMITED TO, A MUNICIPAL ELECTRIC UTILITY, OR A  MUNICIPAL  POWER
AGENCY ON BEHALF OF AND AT THE REQUEST OF A MEMBER DISTRIBUTION UTILITY,
A COUNTY, STATUTORY OR HOME RULE CHARTER CITY, TOWN, SCHOOL DISTRICT, OR
PUBLIC  OR  PRIVATE  HIGHER  EDUCATION INSTITUTION OR ANY OTHER LOCAL OR
REGIONAL GOVERNMENTAL ORGANIZATION SUCH AS A BOARD, COMMISSION, OR ASSO-
CIATION; OR
  (6) A TRIBAL COUNCIL;
  (K) "REASONABLE PROFIT" MEANS A  RATE  OF  PROFIT  THAT  IS  JUST  AND
REASONABLE, BUT NOT LESS THAN TEN PERCENT PER YEAR;
  (L) "RENEWABLE ELECTRICITY GENERATOR" MEANS A PROJECT:
  (1)  THAT  GENERATES  ELECTRICAL ENERGY BY MEANS OF AN ELIGIBLE ENERGY
TECHNOLOGY, BUT DOES NOT INCLUDE AN ENERGY  RECOVERY  FACILITY  USED  TO
CAPTURE  THE HEAT VALUE OF MIXED MUNICIPAL SOLID WASTE OR REFUSE-DERIVED
FUEL FROM MIXED MUNICIPAL SOLID WASTE AS A PRIMARY FUEL; AND
  (2) IN WHICH ONE OR MORE QUALIFYING OWNERS HAVE AT LEAST  A  FIFTY-ONE
PERCENT OWNERSHIP INTEREST;
  (M)  "ROOFTOP  PROJECT" MEANS A PROJECT IN WHICH A PHOTOVOLTAIC DEVICE
IS PHYSICALLY ATTACHED TO THE ROOF OF A BUILDING;
  (N) "ROTOR-SWEPT AREA" MEANS AN AREA EQUAL TO 3.1416 MULTIPLIED BY THE
SQUARE OF THE LENGTH OF THE ROTOR OF A WIND ENERGY CONVERSION SYSTEM;
  (O)  "SMALL  WIND  TURBINE"  MEANS  A  SINGLE  WIND  TURBINE  WITH   A
ROTOR-SWEPT AREA OF NO MORE THAN ONE THOUSAND SQUARE FEET; AND
  (P)  "WIND  ENERGY CONVERSION SYSTEM" MEANS ANY DEVICE, SUCH AS A WIND
CHARGER, WINDMILL, OR WIND TURBINE, WHICH CONVERTS WIND ENERGY TO A FORM
OF USABLE ENERGY.
  2. A TARIFF IS ESTABLISHED TO PROVIDE OPPORTUNITIES  FOR  STATE  RESI-
DENTS  TO OWN AND INVEST IN RENEWABLE ELECTRICITY GENERATION AND REQUIR-
ING UTILITIES TO PURCHASE ELECTRICAL ENERGY AT  A  JUST  AND  REASONABLE
PRICE   FROM   STATE-OWNED  RENEWABLE  ELECTRICITY  GENERATION  PROJECTS
CONNECTED TO THE ELECTRICAL DISTRIBUTION SYSTEM IN ACCORDANCE  WITH  THE
STANDARD TERMS AND RATES PROVIDED IN THIS SECTION.
  3. ON OR BEFORE DECEMBER FIRST, TWO THOUSAND NINE, EACH ELECTRIC UTIL-
ITY  PROVIDING  ELECTRIC  SERVICE  WITHIN THE STATE AT RETAIL COST SHALL
FILE FOR COMMISSION APPROVAL A TARIFF CONSISTENT WITH THE PROVISIONS  OF
THIS SECTION. THE COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS
FROM THE DATE ON WHICH THE SCHEDULE IS FILED.
  4.  EACH  ELECTRIC UTILITY SHALL ENTER INTO A POWER PURCHASE AGREEMENT
WITH  THE  QUALIFYING  OWNERS  OF  A  RENEWABLE  ELECTRICITY   GENERATOR
CONNECTED  TO  THE ELECTRICAL DISTRIBUTION SYSTEM TO PURCHASE ALL OF THE
ELECTRICITY PRODUCED BY THE RENEWABLE ELECTRICITY GENERATOR. THE TERM OF
THE POWER PURCHASE AGREEMENT MUST NOT BE LESS THAN TWENTY YEARS FROM THE
DATE OF COMMISSIONING OF THE RENEWABLE ELECTRICITY GENERATOR. THE  RATES
OF  THE  POWER  PURCHASE  AGREEMENT MUST BE THE RATES ESTABLISHED BY THE
COMMISSION UNDER SUBDIVISION FIVE OF THIS SECTION.
  5. THE TARIFF DESCRIBED IN SUBDIVISION TWO OF THIS SECTION SHALL  HAVE
A RATE SCHEDULE AS FOLLOWS:
  (A)  THE  RATE  FOR  ELECTRICITY GENERATED BY A WIND ENERGY CONVERSION
SYSTEM SHALL BE THE RATE NEEDED  TO  ENSURE  ADEQUATE  RENEWABLE  ENERGY
DEVELOPMENT, PLUS A REASONABLE PROFIT, BUT NO LESS THAN THE FOLLOWING:
  (1)  FOR  YEARS  ONE  THROUGH  FIVE FOLLOWING THE COMMISSIONING OF THE
PROJECT, $0.105 PER KILOWATT HOUR;

S. 2715                             4

  (2) FOR YEARS  SIX  THROUGH  TWENTY  FOLLOWING  COMMISSIONING  OF  THE
PROJECT:
  (I)  $0.105  PER  KILOWATT  HOUR FOR PROJECTS WITH AN AVERAGE SPECIFIC
YIELD LESS THAN SEVEN HUNDRED KILOWATT HOURS PER SQUARE METER PER YEAR;
  (II) $0.08 PER KILOWATT HOUR FOR PROJECTS  WITH  AN  AVERAGE  SPECIFIC
YIELD  GREATER  THAN  ELEVEN HUNDRED KILOWATT HOURS PER SQUARE METER PER
YEAR; AND
  (III) A LINEAR EXTRAPOLATION BETWEEN THE RATES IN CLAUSES (I) AND (II)
OF THIS SUBPARAGRAPH FOR A PROJECT WITH AN AVERAGE SPECIFIC YIELD GREAT-
ER THAN SEVEN HUNDRED KILOWATT HOURS PER SQUARE METER PER YEAR BUT  LESS
THAN ELEVEN HUNDRED KILOWATT HOURS PER SQUARE METER PER YEAR; AND
  (3)  FOR  A  SMALL  WIND  ENERGY CONVERSION SYSTEM, $0.25 PER KILOWATT
HOUR.
  (B) THE RATE FOR ELECTRICITY GENERATED FROM HYDROELECTRIC  POWER  MUST
BE  THE  LOWEST RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOP-
MENT, PLUS A REASONABLE PROFIT, BUT NO LESS THAN THE FOLLOWING:
  (1) $0.10 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY  BELOW  FIVE
HUNDRED KILOWATTS;
  (2)  $0.085  PER  KILOWATT  HOUR FOR A PROJECT WITH A CAPACITY OF FIVE
HUNDRED KILOWATTS BUT LESS THAN TEN MEGAWATTS; AND
  (3) $0.065 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
TEN MEGAWATTS BUT LESS THAN TWENTY MEGAWATTS.
  (C) THE RATE FOR ELECTRICITY GENERATED BY AN ANAEROBIC DIGESTER SYSTEM
OR OTHER BIOMASS SYSTEM THAT OPERATES AT AN EFFICIENCY OF SIXTY  PERCENT
OR  GREATER, MUST BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY
DEVELOPMENT, PLUS A REASONABLE PROFIT, BUT NO LESS THAN THE FOLLOWING:
  (1) $0.145 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY  BELOW  ONE
HUNDRED FIFTY KILOWATTS;
  (2) $0.125 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
ONE HUNDRED FIFTY KILOWATTS BUT LESS THAN FIVE HUNDRED KILOWATTS;
  (3)  $0.115  PER  KILOWATT  HOUR FOR A PROJECT WITH A CAPACITY GREATER
THAN FIVE HUNDRED KILOWATTS BUT LESS THAN FIVE MEGAWATTS; AND
  (4) $0.105 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
FIVE MEGAWATTS BUT LESS THAN TWENTY MEGAWATTS.
  (D) THE RATE FOR ELECTRICITY GENERATED BY LANDFILL GAS  THAT  OPERATES
AT  AN EFFICIENCY OF SIXTY PERCENT OR GREATER MUST BE THE RATE NEEDED TO
ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT, PLUS A REASONABLE  PROFIT,
BUT NO LESS THAN THE FOLLOWING:
  (1)  $0.10  PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY UNDER FIVE
HUNDRED KILOWATTS; AND
  (2) $0.085 PER KILOWATT HOUR FOR A PROJECT WITH  A  CAPACITY  OF  FIVE
HUNDRED KILOWATTS OR MORE.
  (E)  THE  RATE FOR ELECTRICITY GENERATED BY A PHOTOVOLTAIC DEVICE MUST
BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT  PLUS
A REASONABLE PROFIT, BUT NO LESS THAN THE FOLLOWING:
  (1) $0.50 PER KILOWATT HOUR FOR A FREE STANDING OR OPEN FIELD PROJECT;
  (2)  $0.65  PER  KILOWATT  HOUR  FOR A ROOFTOP PROJECT WITH A CAPACITY
BELOW THIRTY KILOWATTS;
  (3) $0.62 PER KILOWATT HOUR FOR A ROOFTOP PROJECT WITH A  CAPACITY  OF
AT LEAST THIRTY KILOWATTS BUT LESS THAN ONE HUNDRED KILOWATTS;
  (4)  $0.61  PER KILOWATT HOUR FOR A ROOFTOP PROJECT WITH A CAPACITY OF
ONE HUNDRED KILOWATTS OR MORE;
  (5) $0.71 PER KILOWATT HOUR FOR  A  FACADE  CLADDING  PROJECT  WITH  A
CAPACITY BELOW THIRTY KILOWATTS;

S. 2715                             5

  (6)  $0.68  PER  KILOWATT  HOUR  FOR  A FACADE CLADDING PROJECT WITH A
CAPACITY OF AT LEAST THIRTY KILOWATTS BUT LESS THAN  ONE  HUNDRED  KILO-
WATTS; AND
  (7)  $0.67  PER  KILOWATT  HOUR  FOR  A FACADE CLADDING PROJECT WITH A
CAPACITY OF ONE HUNDRED KILOWATTS OR MORE.
  FOR THE PURPOSES OF THIS SUBDIVISION, "EFFICIENCY" MEANS  THE  SUM  OF
THE  NET  USEFUL  POWER  OUTPUT PLUS THE NET USEFUL THERMAL OUTPUT OF AN
ELECTRICITY GENERATING SYSTEM, WHICH SUM IS THEN DIVIDED  BY  THE  TOTAL
FUEL INPUT.
  6.  THE  COMMISSION  SHALL  NOT  APPROVE  A TARIFF ESTABLISHED IN THIS
SECTION THAT ALLOWS A PROJECT OWNER TO RECEIVE FEDERAL OR  STATE  SUBSI-
DIES,  TAX CREDITS, OR OTHER FINANCIAL INCENTIVES AVAILABLE TO OWNERS OF
RENEWABLE ELECTRIC GENERATION FACILITIES,  UNLESS  THE  TARIFF  REQUIRES
THAT  THOSE  SUBSIDIES,  TAX  CREDITS, OR OTHER FINANCIAL INCENTIVES ARE
DEDUCTED FROM THE AMOUNTS PAID TO THE PROJECT  OWNER.  THIS  SUBDIVISION
DOES  NOT  APPLY TO FINANCIAL INCENTIVES AVAILABLE TO BUSINESSES THAT DO
NOT GENERATE ELECTRICITY FROM RENEWABLE SOURCES.
  7. DURING THE TERM OF A POWER PURCHASE AGREEMENT  ENTERED  INTO  UNDER
THE  TARIFF  ESTABLISHED IN THIS SECTION, NO QUALIFYING OWNER MAY VOLUN-
TARILY SELL ITS OWNERSHIP INTEREST IN  THE  RENEWABLE  ENERGY  GENERATOR
UNLESS  THE  SALE  IS TO ANOTHER QUALIFYING OWNER AND IS APPROVED BY THE
COMMISSION. THIS SUBDIVISION DOES NOT RESTRICT TRANSFERS OF INTEREST  BY
MEANS OTHER THAN VOLUNTARY SALES.
  8.  (A)  BEGINNING  FEBRUARY FIRST, TWO THOUSAND TWELVE, AND EVERY TWO
YEARS THEREAFTER, THE COMMISSION SHALL REVIEW AND ADJUST  RATES  ADOPTED
UNDER THE TARIFF IN THIS SECTION EVERY TWO YEARS AS NECESSARY TO ACHIEVE
ADEQUATE  RENEWABLE  ENERGY  DEVELOPMENT; ACCOUNT FOR INFLATION; PROVIDE
FOR A REASONABLE, BUT NOT EXCESSIVE, PROFIT TO OWNERS OF RENEWABLE ELEC-
TRICITY GENERATORS; PROMOTE DEVELOPMENT OF COMMUNITY-BASED ENERGY DEVEL-
OPMENT PROJECTS; AND MINIMIZE COSTS TO RATEPAYERS OF A UTILITY'S COMPLI-
ANCE WITH APPLICABLE STATE OR FEDERAL RENEWABLE ENERGY STANDARDS.
  (B) THE COMMISSION MAY, AFTER NOTICE  AND  HEARING,  REQUIRE  ELECTRIC
UTILITIES TO ENTER INTO POWER PURCHASE AGREEMENTS WITH QUALIFYING OWNERS
AT  RATES  IN  ACCORDANCE  WITH  SUBDIVISION FIVE OF THIS SECTION AS ARE
NECESSARY TO ACHIEVE ADEQUATE RENEWABLE  ENERGY  DEVELOPMENT  UPON  SUCH
TERMS NEEDED TO ENSURE ACCOMPLISHMENT OF COMMUNITY-BASED ENERGY DEVELOP-
MENT PROJECT PROCUREMENT GOALS AND ADEQUATE LOCAL BENEFITS.
  9.  THE  TARIFF  IN  THIS SECTION MUST PROVIDE THAT ELECTRIC UTILITIES
WILL INTERCONNECT RENEWABLE ENERGY GENERATORS TO THE ELECTRICAL DISTRIB-
UTION SYSTEM UNDER THE JURISDICTION OF THE  COMMISSION  TO  THE  MAXIMUM
EXTENT  OF  STATE JURISDICTION ALLOWED UNDER FEDERAL LAW. THE COMMISSION
SHALL CONSULT WITH THE FEDERAL ENERGY REGULATORY  COMMISSION  AND  OTHER
APPROPRIATE  ENTITIES  TO  ESTABLISH  AN  INTERCONNECTION REQUEST REVIEW
PROCEDURE TO PROMPTLY AND  EFFICIENTLY  DETERMINE  WHETHER  OR  NOT  THE
COMMISSION  MAY  INTERCONNECT A RENEWABLE ENERGY GENERATOR THAT REQUESTS
INTERCONNECTION UNDER STATE  AUTHORITY.    THE  COMMISSION  SHALL  ISSUE
ORDERS  NECESSARY TO ESTABLISH INTERCONNECTION TARIFFS FOR THE STANDARD-
IZED, COST-EFFECTIVE, TIMELY,  RELIABLE,  AND  SAFE  INTERCONNECTION  OF
RENEWABLE  ELECTRICITY  GENERATORS UNDER STATE AUTHORITY. THE COMMISSION
SHALL ESTABLISH STANDARD INTERCONNECTION CONTRACTS  AND  INTERCONNECTION
SCHEDULES.  THE  COSTS  ASSOCIATED WITH THE INTERCONNECTION OF RENEWABLE
ELECTRICITY GENERATORS, INCLUDING DIRECT INTERCONNECTION COSTS, DISTRIB-
UTION SYSTEM ENHANCEMENTS, AND ELECTRIC UTILITY  COMPLIANCE  COSTS,  ARE
RECOVERABLE AS PROVIDED IN SUBDIVISION ELEVEN OF THIS SECTION.
  10. THE COMMISSION SHALL APPROVE A STANDARD CONTRACT TO BE USED IN ALL
POWER  PURCHASE  AGREEMENTS  UNDER  THE  TARIFF  ESTABLISHED  UNDER THIS

S. 2715                             6

SECTION. THE CONTRACT SHALL INCLUDE THE PRICE  PAID  FOR  EACH  KILOWATT
HOUR  GENERATED,  A  METHOD  TO  ADJUST THE PRICE FOR INFLATION, AND THE
DURATION OF THE CONTRACT.
  11.  THE  COMMISSION  SHALL  REQUIRE  AN ELECTRIC UTILITY TO FILE RATE
SCHEDULES CONTAINING PROVISIONS FOR THE AUTOMATIC ADJUSTMENT OF  CHARGES
FOR ELECTRIC UTILITY SERVICE IN DIRECT RELATION TO THE COST OF ELECTRIC-
ITY  PURCHASED  FROM  RENEWABLE  ELECTRICITY GENERATORS UNDER THE TARIFF
ESTABLISHED UNDER SUBDIVISION FIVE OF THIS SECTION AND ALL  OTHER  COSTS
REQUIRED TO COMPLY WITH THE TARIFF.
  12.  RENEWABLE  ENERGY  GENERATORS,  QUALIFYING OWNERS THAT OWN ALL OR
PART OF A RENEWABLE ENERGY GENERATOR, AND ELECTRIC UTILITIES SHALL, UPON
REQUEST, PROVIDE THE COMMISSION ANY INFORMATION THAT MAY BE RELEVANT  TO
THE  COMMISSION  PERFORMING ITS DUTIES UNDER THIS SECTION, INCLUDING BUT
NOT LIMITED TO ASSESSMENT OF PROJECT DEVELOPMENT COSTS, EQUIPMENT COSTS,
ELECTRICITY PRODUCTION  COSTS,  INTERCONNECTION  COSTS,  AUTOMATIC  RATE
ADJUSTMENTS, AND COMPLIANCE COSTS.
  13.  BY  JANUARY FIRST OF TWO THOUSAND ELEVEN AND TWO THOUSAND TWELVE,
AND EVERY FOUR YEARS THEREAFTER, THE COMMISSION SHALL SUBMIT A REPORT TO
THE GOVERNOR AND LEGISLATURE THAT SHALL INCLUDE THE FOLLOWING:
  (A) THE NUMBER OF NEW RENEWABLE ELECTRICITY GENERATORS IN  THIS  STATE
AND THE ENVIRONMENTAL EFFECTS OF THE ADDITION OF THOSE GENERATORS;
  (B) RECOMMENDATIONS FOR LEGISLATION AND CHANGES TO THE RATES IN SUBDI-
VISION FOUR OF THIS SECTION, IF ANY; AND
  (C)  ACTIONS  TAKEN  BY  THE COMMISSION TO IMPLEMENT THE PROVISIONS OF
THIS SECTION AND TO USE THE  TARIFF  TO  ACHIEVE  THE  RENEWABLE  ENERGY
OBJECTIVES AND STANDARDS.
  S 4. This act shall take effect immediately.

2009-S2715A (ACTIVE) - Details

See Assembly Version of this Bill:: A187
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §66-m, Pub Serv L

2009-S2715A (ACTIVE) - Summary

2009-S2715A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2715A

 TITLE OF BILL :
An act to amend the public service law, in relation to requiring
certain providers of electric service to purchase electricity from
eligible electric generators; establishing a rate schedule for certain
renewable energy projects; prescribing the powers and duties of
certain state agencies and officials; and requiring a report to the
governor and the legislature concerning the effect of the purchase by
providers of electric service of electricity generated from renewable
energy sources


 PURPOSE :
In order to encourage the most rapid and efficient installation of
electricity generators powered by renewable sources, this bill
establishes a rate schedule for mandatory purchase agreements between
utilities and qualified renewable energy generators. The rate schedule
provides a fixed rate for power for the first twenty years after
installation. The fixed rate provides a secure revenue stream to make
projects financeable and attract investments to the state of New York.
The rate schedule will be reviewed on an annual basis by the Public
Service Commission and adjusted for subsequent purchase agreements to
reflect the lowest rates that ensure the desired level of continued
renewable development.

 SUMMARY OF PROVISIONS :
This legislation adds a new section, 66-m, to the public service law.

 SUMMARY OF REVISIONS TO S2715 :
Section 1 - New language adds intent to create a diverse renewable
energy industry in NY State that maximizes clean energy jobs and
encourages the direct participation of a diverse set of owners of
generation, including homeowners, large and small business, public
entities, and non-profit entities.

Section 2 Changes the name from the "New York renewable energy sources
act" to the "New York renewable energy stimulus act".

 1 (f) Adds run of river hydro and tidal hydro to the "eligible energy
technology" definition and strikes hydrogen, which is basically a
storage energy form and for which there were no proposed tariff prices
in the original bill.
(g) Changes "facade cladding" definition to "facade or integrated
rooftop cladding" for solar projects.
(h) (i) (q) Adds definitions for large, medium and small wind systems
to allow a differentiated tariff for those technologies.
(j)Defines a "levelized rate" so that it is clearly understood that
once a tariff rate is set for a power purchase agreement that rate
remains unchanged for the term of the agreement.
(j)Strikes the former (j) which defined a "qualified owner" in several
ways that require NY residency to recoup the feed in tariff. This
definition limited the market for renewable projects and would have
cut rate paying businesses out of the program. In (n) it is specified
that projects must be within the borders of NY State.
(k)Defines a "net metered photovoltaic generator" to allow a lower
tariff rate to account for cost reductions an owner receives under net
metering.

 2. Takes out "state owned" as the tariff doesn't require state
ownership of projects.

 5. Amends the wind energy tariff to create an advanced renewable
tariff that sets different rates for different sized turbines. It also
sets a different rate based on the wind regime that is experienced in

the first 5 years of operation of the turbine, allowing the tariff to
be scaled to the lowest needed rate.
5. (a) Changes original language which treated the tariff rates as a
floor. The new language recognizes them as a starting point which will
be altered by the Public Service Commission during a yearly review
process. This language change is repeated for each type of renewable
technology.
5. (a) (5) through (7) Sets variable rates for offshore projects based
on water depth, allowing the tariff to be scaled to the lowest needed
rate.
5. (a) (8) Provides a 2c per kWh increase for wind projects whose
owners are not legally allowed to access the federal production tax
credit or the investment tax credit.
5. (b) (c) and (d) Adjusts rates for hydroelectric, biomass, and
landfill gas down to account for federal tax credits.
5. (e) Redefines solar project categories by capacity and ability of
the project to net meter as opposed to where the solar panels are
mounted, and solar rates are adjusted down to reflect market
conditions and the availability of various incentives.
5. (e) (6) through (9) Provides "adders" of Sc per kWh for solar
projects that are facades or integrated cladding, for projects that
are in non-attainment areas, NYISO defined load pockets, and
brownfields.
5. (e) (10) Provides a 5c per kWh adder for solar projects using at
least 75% labor and materials sourced in NY State.
5. (e) (11) Provides a 10 c per kWh adder for solar projects whose
owners are not legally allowed to access the federal production tax
credit or the investment tax credit.
5. Provides that no project will be allowed to make use of more than 2
of the adders.
5. (f) Rates for hydrokinetic run of river and tidal projects were
adjusted down to account for federal tax credits.

 6 (a) Sets a yearly cap on solar projects to protect ratepayers as
solar projects are the most expensive of the renewable technologies
covered by the tariff. Depending on the degree to which the tariff
supplants rebates paid through the Systems Benefit Charge, the NY
Solar Energy Industries Association (NYSEIA) projects the solar
portion of the tariff will add 0 to 17 cents per month to the average
ratepayer's bill.  NYSEIA projects that if a third of proposed rebates
are supplanted, the solar portion of the tariff would be revenue
neutral for rate payers
6. (b) Sets a schedule by which power purchase agreements are
allocated under the solar cap.
6. (c) Prevents anyone solar developer from capturing more than 20% of
the market in a given year in an attempt to avoid monopoly and ensure
a diverse and competitive group of developers.
6. (d) Reserves 25% of solar capacity for residential projects so the
benefits of the tariff are spread widely among New Yorkers, with
provisions for adjustments if that total is not reached.
6. (e) Limits the largest (2 MW) solar projects to 25% of the cap so
the benefits of the tariff are not concentrated in too few projects
and jobs are created installing many projects.

 7. (a) Provides that utilities and those receiving power purchase
agreements under this tariff will not receive payments for NYS
Renewable Energy credits, and the power generated under the tariff
will be used to reduce obligations under the NYS Renewable Portfolio
Standard.
7. (b) Provides that value for carbon credits received under the
Regional Greenhouse Gas Initiative, or other credit trading regimes
shall be the property of the utility that entered into the power
purchase agreement, and those credits shall be used to reduce the
costs of this tariff to ratepayers.
7. (c) Provides that those receiving power purchase agreements under
this tariff shall not be prevented from receiving federal or state tax
credits, but that the amount funded by the power purchase agreement
will be reduced by the amount of rebates received that are funded
under the NYS Systems Benefit Charge.

 8. (a) Provides that starting February 1, 2011, the PSC shall review
the rates adopted under the tariff annually and adjust them to reflect
market conditions. It is the stated intent of the legislation for the
rates to be reduced by at least 5% per year.

 10. Provides that energy will be paid for on an as delivered basis,
and there will be no penalties for failure to deliver a specific
quantity. However, contracts can be cancelled if systems are not
completed and operating within a reasonable amount of time.

 12. Provides that utilities will be allowed to recover legitimate
costs incurred under this tariff, including costs related to tariff
contracts being imputed as debt.

 JUSTIFICATION :
To ensure the continued prosperity of New York State and the United
States generally, we must break our dependence on imported oil and the
pollution, price-spikes and political instability that come with it.
Rapid installation of renewable electricity generating equipment is
the most efficient means of achieving this goal. This bill establishes
incentives in the form of mandatory purchase agreements with utility
companies that reward early installation of renewable energy
generation equipment and guarantee a long term return on investment.
The program offers different rate schedules for the various modes of
renewable generation allowing small entrepreneurs to compete on even
terms with larger companies.

The current regime of incentive programs for renewable energy
generation in New York State has not significantly increased the
amount of renewable energy generated.

Similar feed-in tariff legislation passed in Germany resulted in a
doubling of the renewable energy generating capacity in only four
years and the German Government estimates that they will generate
12.5% of the nation's energy by 2010 and 20% by 2020.

New York has the opportunity to be a national leader in the generation
of renewable electricity and to guarantee economic prosperity through
the development of new green jobs. This legislation can be the first
step toward reaching those goals and ensuring the less expensive and
cleaner power we need for the future.

 LEGISLATIVE HISTORY :
This is a new bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S2715A (ACTIVE) - Bill Text download pdf

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

                                 2715--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 27, 2009
                               ___________

Introduced  by Sen. THOMPSON -- 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 public service law, in relation to requiring certain
  providers of electric service to purchase  electricity  from  eligible
  electric  generators; establishing a rate schedule for certain renewa-
  ble energy projects; prescribing the  powers  and  duties  of  certain
  state  agencies  and officials; and requiring a report to the governor
  and the legislature concerning the effect of the purchase by providers
  of electric service of electricity  generated  from  renewable  energy
  sources

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

  Section 1. Legislative intent and purpose. It is  the  intent  of  the
legislature  to  enable  the  rapid  and  sustainable development of the
state's abundant renewable energy resources for the clean generation  of
electricity and to allow all New York citizens to participate in renewa-
ble electricity generation.  It is the further intent of the legislature
to  ensure that such rapid development of renewable energy shall promote
the growth and development of a diverse renewable energy industry within
the state of New York, that it shall  maximize  the  creation  of  clean
energy  jobs  within  the  state, and that it shall encourage the direct
participation of a diverse set of owners of generation, including  home-
owners,  large and small business, public entities, and non-profit enti-
ties.
  Doing so will reduce the volatility of future electricity  prices  and
the  long-term  costs  of  electricity,  and  it will have the effect of
protecting the  state's  natural  resources,  including  protecting  its
atmosphere from air pollution and its climate from global warming.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01287-04-9

S. 2715--A                          2

  Further,  such measures shall place New York at the forefront of North
America's renewable energy revolution, stimulating  the  development  of
new jobs, technologies, and industry within the state and creating a New
York marketplace for the development of renewable energy.
  S 2. This act shall be known and may be cited as the "New York renewa-
ble energy sources act".
  S 3. The public service law is amended by adding a new section 66-m to
read as follows:
  S  66-M.    RENEWABLE  ENERGY  RESOURCES  TARIFF. 1.   AS USED IN THIS
SECTION: (A) "ADEQUATE RENEWABLE ENERGY DEVELOPMENT"  MEANS  A  RATE  OF
DEVELOPMENT  NECESSARY TO ACCOMPLISH THE RENEWABLE ENERGY OBJECTIVES AND
STANDARDS AS DETERMINED BY THE COMMISSION;
  (B) "AVERAGE SPECIFIC YIELD" MEANS  THE  AVERAGE  NUMBER  OF  KILOWATT
HOURS PRODUCED DURING THE INITIAL FIVE YEARS OF PRODUCT OF A WIND ENERGY
CONVERSION   SYSTEM,   EXCLUDING   THE  MAXIMUM  AND  MINIMUM  YEARS  OF
PRODUCTION, DIVIDED BY THE ROTOR-SWEPT AREA IN SQUARE METERS;
  (C) "CAPACITY" MEANS THE NAMEPLATE CAPACITY OF A RENEWABLE ELECTRICITY
GENERATOR FOR PHOTOVOLTAIC MODULES AT STANDARD TEST CONDITIONS;
  (D) "ELECTRIC UTILITY"  MEANS  A  PUBLIC  UTILITY  PROVIDING  ELECTRIC
SERVICE, A GENERATION AND TRANSMISSION COOPERATIVE ELECTRIC ASSOCIATION,
A  MUNICIPAL  POWER AGENCY, OR A POWER DISTRICT PROVIDING ELECTRICITY TO
STATE RESIDENTS;
  (E) "ELECTRICAL DISTRIBUTION SYSTEM" MEANS THAT PORTION OF  THE  ELEC-
TRIC  POWER  SYSTEM  OVER WHICH THE FEDERAL ENERGY REGULATORY COMMISSION
DOES NOT HAVE AUTHORITY TO INTERCONNECT ELECTRIC  GENERATORS  THAT  SELL
ELECTRICITY IN INTRASTATE COMMERCE ONLY;
  (F)  "ELIGIBLE  ENERGY  TECHNOLOGY"  MEANS  AN  ENERGY TECHNOLOGY THAT
GENERATES ELECTRICITY FROM THE FOLLOWING RENEWABLE ENERGY SOURCES:
  (1) SOLAR;
  (2) WIND;
  (3) HYDROELECTRIC WITH A CAPACITY OF LESS THAN ONE HUNDRED MEGAWATTS;
  (4) BIOMASS, WHICH INCLUDES LANDFILL GAS,  OR  AN  ANAEROBIC  DIGESTER
SYSTEM;
  (5) RIVER HYDRO-KINETIC ELECTRIC GENERATION; OR
  (6)  TIDAL HYDRO-KINETIC ELECTRIC GENERATION, EXCEPT THOSE CONSTRUCTED
AS DAMS OR AS PART OF A BARGE STRUCTURE;
  (G) "FACADE OR INTEGRATED ROOFTOP CLADDING PROJECT" MEANS A PROJECT IN
WHICH A PHOTOVOLTAIC DEVICE IS ATTACHED TO THE WALL OR ROOF OF A  BUILD-
ING  IN  SUCH  A  WAY  AS  TO SERVE THE NORMAL FUNCTION OF AN EQUIVALENT
BUILDING CLADDING SYSTEM;
  (H) "LARGE WIND ENERGY CONVERSION SYSTEM" MEANS A SINGLE WIND  TURBINE
WITH A ROTOR-SWEPT AREA OF MORE THAN TWO THOUSAND SQUARE METERS;
  (I) "MEDIUM WIND ENERGY CONVERSION SYSTEM" MEANS A SINGLE WIND TURBINE
WITH A ROTOR-SWEPT AREA OF BETWEEN ONE AND TWO THOUSAND SQUARE METERS;
  (J)  "LEVELIZED  RATE" MEANS A RATE ESTABLISHED FOR A PARTICULAR POWER
PURCHASE AGREEMENT THAT IS HELD UNCHANGED DURING THE ENTIRE TERM OF THAT
AGREEMENT;
  (K) "NET METERED PHOTOVOLTAIC GENERATOR" MEANS A  PHOTOVOLTAIC  SYSTEM
CONNECTED  ON  THE  CUSTOMER SIDE OF THE ELECTRIC METER AND OPERATING IN
PARALLEL WITH THE ELECTRIC GRID ACCORDING TO THE REQUIREMENTS OF SECTION
SIXTY-SIX-J OF THIS ARTICLE;
  (L) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM INCIDENT SUNLIGHT BY MEANS OF THE PHOTOVOLTAIC EFFECT,
WHETHER OR NOT THE DEVICE IS ABLE TO STORE THE ENERGY PRODUCED FOR LATER
USE;

S. 2715--A                          3

  (M) "REASONABLE PROFIT" MEANS A  RATE  OF  PROFIT  THAT  IS  JUST  AND
REASONABLE, BUT NOT LESS THAN TEN PERCENT PER YEAR;
  (N)  "RENEWABLE  ELECTRICITY GENERATOR" MEANS A PROJECT THAT GENERATES
ELECTRICAL ENERGY, WITHIN THE BORDERS OF NEW YORK STATE BY MEANS  OF  AN
ELIGIBLE  ENERGY  TECHNOLOGY,  BUT  DOES  NOT INCLUDE AN ENERGY RECOVERY
FACILITY USED TO CAPTURE THE HEAT VALUE OF MIXED MUNICIPAL  SOLID  WASTE
OR  REFUSE-DERIVED  FUEL  FROM  MIXED MUNICIPAL SOLID WASTE AS A PRIMARY
FUEL;
  (O) "ROOFTOP PROJECT" MEANS A PROJECT IN WHICH A  PHOTOVOLTAIC  DEVICE
IS PHYSICALLY ATTACHED TO THE ROOF OF A BUILDING;
  (P) "ROTOR-SWEPT AREA" MEANS AN AREA EQUAL TO 3.1416 MULTIPLIED BY THE
SQUARE OF THE LENGTH OF THE ROTOR OF A WIND ENERGY CONVERSION SYSTEM;
  (Q)  "SMALL WIND ENERGY CONVERSION SYSTEM" MEANS A SINGLE WIND TURBINE
WITH A ROTOR-SWEPT AREA OF NO MORE THAN ONE THOUSAND SQUARE METERS; AND
  (R) "WIND ENERGY CONVERSION SYSTEM" MEANS ANY DEVICE, SUCH AS  A  WIND
CHARGER, WINDMILL, OR WIND TURBINE, WHICH CONVERTS WIND ENERGY TO A FORM
OF USABLE ENERGY;
  (S)  "POWER PURCHASE AGREEMENT" MEANS A LONG TERM AGREEMENT BETWEEN AN
ENERGY PROVIDER AND A CUSTOMER TO PURCHASE POWER AT PREDETERMINED RATES;
AND
  (T) FOR THE PURPOSES OF THIS SUBDIVISION, "EFFICIENCY" MEANS  THE  SUM
OF  THE NET USEFUL POWER OUTPUT PLUS THE NET USEFUL THERMAL OUTPUT OF AN
ELECTRICITY GENERATING SYSTEM, WHICH SUM IS THEN DIVIDED  BY  THE  TOTAL
FUEL INPUT.
  2.  A  POLICY  IS ESTABLISHED TO PROVIDE OPPORTUNITIES FOR STATE RESI-
DENTS TO OWN AND INVEST IN RENEWABLE ELECTRICITY GENERATION AND  REQUIR-
ING  UTILITIES  TO  PURCHASE  ELECTRICAL ENERGY AT A JUST AND REASONABLE
PRICE  FROM  STATE-OWNED  RENEWABLE  ELECTRICITY   GENERATION   PROJECTS
CONNECTED  TO  THE ELECTRICAL DISTRIBUTION SYSTEM IN ACCORDANCE WITH THE
STANDARD TERMS AND RATES PROVIDED IN THIS SECTION.
  3. ON OR BEFORE DECEMBER FIRST, TWO THOUSAND NINE, EACH ELECTRIC UTIL-
ITY PROVIDING ELECTRIC SERVICE WITHIN THE STATE  AT  RETAIL  COST  SHALL
FILE  FOR COMMISSION APPROVAL A TARIFF CONSISTENT WITH THE PROVISIONS OF
THIS SECTION. THE COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS
FROM THE DATE ON WHICH THE SCHEDULE IS FILED.
  4. EACH ELECTRIC UTILITY SHALL ENTER INTO A POWER  PURCHASE  AGREEMENT
WITH  THE  OWNERS  OF A RENEWABLE ELECTRICITY GENERATOR CONNECTED TO THE
NEW YORK ELECTRICAL DISTRIBUTION SYSTEM OR A  NET  METERED  PHOTOVOLTAIC
GENERATOR  TO  PURCHASE ALL OF THE ELECTRICITY PRODUCED BY THE RENEWABLE
ELECTRICITY GENERATOR. THE TERM OF THE POWER PURCHASE AGREEMENT MUST NOT
BE LESS THAN TWENTY YEARS FROM THE DATE OF COMMISSIONING OF THE  RENEWA-
BLE  ELECTRICITY  GENERATOR.  THE  RATES OF THE POWER PURCHASE AGREEMENT
MUST BE THE RATES ESTABLISHED BY THE COMMISSION UNDER  SUBDIVISION  FIVE
OF THIS SECTION.
  5.  THE  TARIFF  DESCRIBED  IN SUBDIVISION THREE OF THIS SECTION SHALL
HAVE A LEVELIZED RATE SCHEDULE AS FOLLOWS:
  (A) THE RATE FOR ELECTRICITY GENERATED BY  A  WIND  ENERGY  CONVERSION
SYSTEM  SHALL  BE  THE  RATE  NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY
DEVELOPMENT, PLUS A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
  (1) FOR A LARGE WIND ENERGY CONVERSION SYSTEM FOR  YEARS  ONE  THROUGH
FIVE  FOLLOWING  THE  COMMISSIONING  OF THE PROJECT, $0.105 PER KILOWATT
HOUR;
  (2) FOR A LARGE WIND ENERGY CONVERSION SYSTEM FOR  YEARS  SIX  THROUGH
TWENTY FOLLOWING COMMISSIONING OF THE PROJECT:

S. 2715--A                          4

  (I)  $0.105  PER  KILOWATT  HOUR FOR PROJECTS WITH AN AVERAGE SPECIFIC
YIELD LESS THAN SEVEN HUNDRED KILOWATT HOURS PER SQUARE METER  OF  SWEPT
ROTOR AREA PER YEAR;
  (II)  $0.06  PER  KILOWATT  HOUR FOR PROJECTS WITH AN AVERAGE SPECIFIC
YIELD GREATER THAN ELEVEN HUNDRED KILOWATT HOURS  PER  SQUARE  METER  OF
SWEPT ROTOR AREA PER YEAR; AND
  (III) A LINEAR EXTRAPOLATION BETWEEN THE RATES IN CLAUSES (I) AND (II)
OF THIS SUBPARAGRAPH FOR A PROJECT WITH AN AVERAGE SPECIFIC YIELD GREAT-
ER  THAN  SEVEN  HUNDRED  KILOWATT HOURS PER SQUARE METER OF SWEPT ROTOR
AREA PER YEAR BUT LESS THAN ELEVEN HUNDRED  KILOWATT  HOURS  PER  SQUARE
METER OF SWEPT ROTOR AREA PER YEAR;
  (3)  FOR  A  SMALL  WIND  ENERGY CONVERSION SYSTEM, $0.23 PER KILOWATT
HOUR;
  (4) FOR A MEDIUM WIND ENERGY CONVERSION  SYSTEM,  $0.13  PER  KILOWATT
HOUR;
  (5)  FOR  OFFSHORE  WIND  TURBINE  PROJECTS  IN WATERS WITH A DEPTH OF
BETWEEN ONE TO TWENTY METERS, $0.12 PER KILOWATT HOUR;
  (6) FOR OFFSHORE WIND TURBINE PROJECTS LOCATED IN DEPTHS OF MORE  THAN
ONE HUNDRED METERS, $0.14 PER KILOWATT HOUR;
  (7) FOR OFFSHORE WIND TURBINE PROJECTS LOCATED IN WATER DEPTHS BETWEEN
TWENTY TO ONE HUNDRED METERS, A RATE OF BETWEEN $0.12 TO $0.14 PER KILO-
WATT  HOUR  INCREASING FROM $0.12 AT A RATE OF $.00025 PER KILOWATT HOUR
FOR EVERY METER OF WATER DEPTH GREATER THAN TWENTY METERS; AND
  (8) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH SEVEN  OF  THIS
PARAGRAPH,  ACCORDING TO SIZE, PLUS AN ADDED $0.02 PER KILOWATT HOUR FOR
A PROJECT WHOSE  OWNER  IS  NOT  LEGALLY  ABLE  TO  ACCESS  THE  FEDERAL
PRODUCTION TAX CREDIT OR RENEWABLE INVESTMENT TAX CREDIT.
  (B)  THE  RATE FOR ELECTRICITY GENERATED FROM HYDROELECTRIC POWER MUST
BE THE LOWEST RATE NEEDED TO ENSURE ADEQUATE RENEWABLE  ENERGY  DEVELOP-
MENT, PLUS A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
  (1)  $0.09  PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY BELOW FIVE
HUNDRED KILOWATTS;
  (2) $0.075 PER KILOWATT HOUR FOR A PROJECT WITH  A  CAPACITY  OF  FIVE
HUNDRED KILOWATTS BUT LESS THAN TEN MEGAWATTS; AND
  (3) $0.055 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
TEN MEGAWATTS BUT LESS THAN TWENTY MEGAWATTS.
  (C) THE RATE FOR ELECTRICITY GENERATED BY AN ANAEROBIC DIGESTER SYSTEM
OR  OTHER BIOMASS SYSTEM THAT OPERATES AT AN EFFICIENCY OF SIXTY PERCENT
OR GREATER, MUST BE THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE  ENERGY
DEVELOPMENT, PLUS A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
  (1)  $0.135  PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY BELOW ONE
HUNDRED FIFTY KILOWATTS;
  (2) $0.115 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
ONE HUNDRED FIFTY KILOWATTS BUT LESS THAN FIVE HUNDRED KILOWATTS;
  (3) $0.105 PER KILOWATT HOUR FOR A PROJECT  WITH  A  CAPACITY  GREATER
THAN FIVE HUNDRED KILOWATTS BUT LESS THAN FIVE MEGAWATTS; AND
  (4) $0.095 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
FIVE MEGAWATTS BUT LESS THAN TWENTY MEGAWATTS.
  (D)  THE  RATE FOR ELECTRICITY GENERATED BY LANDFILL GAS THAT OPERATES
AT AN EFFICIENCY OF SIXTY PERCENT OR GREATER MUST BE THE RATE NEEDED  TO
ENSURE  ADEQUATE RENEWABLE ENERGY DEVELOPMENT, PLUS A REASONABLE PROFIT,
INITIALLY SET AS FOLLOWS:
  (1) $0.09 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY  UNDER  FIVE
HUNDRED KILOWATTS; AND
  (2)  $0.075  PER  KILOWATT  HOUR FOR A PROJECT WITH A CAPACITY OF FIVE
HUNDRED KILOWATTS OR MORE.

S. 2715--A                          5

  (E) THE RATE FOR ELECTRICITY GENERATED BY A PHOTOVOLTAIC  DEVICE  MUST
BE  THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT PLUS
A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
  (1) $0.33 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY GREATER THAN
TWO  THOUSAND  KILOWATTS  CONNECTED  TO THE NEW YORK DISTRIBUTION SYSTEM
(NOT NET METERED);
  (2) $0.31 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY BELOW THIRTY
KILOWATTS;
  (3) $0.27 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT  LEAST
THIRTY KILOWATTS BUT LESS THAN ONE HUNDRED KILOWATTS;
  (4)  $0.24 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT LEAST
ONE HUNDRED KILOWATTS BUT LESS THAN FIVE HUNDRED KILOWATTS;
  (5) $0.22 PER KILOWATT HOUR FOR A PROJECT WITH A CAPACITY OF AT  LEAST
FIVE HUNDRED KILOWATTS BUT LESS THAN TWO THOUSAND KILOWATTS;
  (6)  THE  RATES  ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
PARAGRAPH, ACCORDING TO SIZE PLUS AN ADDED $0.05  KILOWATT  HOUR  FOR  A
FACADE OR INTEGRATED ROOF CLADDING PROJECT;
  (7)  THE  RATES  ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR  FOR
A  PROJECT  LOCATED  IN A NON-ATTAINMENT AREA AS DEFINED BY THE NEW YORK
STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION;
  (8) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH  FIVE  OF  THIS
PARAGRAPH,  ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR FOR
A PROJECT LOCATED IN A NYISO LOAD POCKET AS DEFINED BY THE PUBLIC UTILI-
TY COMMISSION;
  (9) THE RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH  FIVE  OF  THIS
PARAGRAPH,  ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR FOR
A PROJECT LOCATED ON A BROWNFIELD AS  DEFINED  IN  THE  NEW  YORK  STATE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION BROWNFIELD PROGRAM;
  (10)  THE  RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.05 PER KILOWATT HOUR  FOR
A PROJECT FOR WHICH SEVENTY-FIVE PERCENT OF THE COSTS OF LABOR AND MATE-
RIALS IN THE PROJECT ARE SOURCED IN NEW YORK STATE; AND
  (11)  THE  RATES ESTABLISHED BY SUBPARAGRAPHS ONE THROUGH FIVE OF THIS
PARAGRAPH, ACCORDING TO SIZE, PLUS AN ADDED $0.10 PER KILOWATT HOUR  FOR
A PROJECT WHOSE OWNER IS A NOT-FOR-PROFIT ENTITY OR PUBLICLY-OWNED ENTI-
TY.
  (12)  NO  PROJECT  SHALL BE ENTITLED TO ADD MORE THAN TWO OF THE ADDED
RATES ESTABLISHED IN SUBPARAGRAPHS SIX THROUGH ELEVEN OF THIS PARAGRAPH.
  (F) THE RATE FOR ELECTRICITY GENERATED BY A HYDROKINETIC  DEVICE  MUST
BE  THE RATE NEEDED TO ENSURE ADEQUATE RENEWABLE ENERGY DEVELOPMENT PLUS
A REASONABLE PROFIT, INITIALLY SET AS FOLLOWS:
  (1) $0.11 PER KILOWATT HOUR FOR RUN-OF-RIVER HYDROKINETIC DEVICES WITH
A CAPACITY OF LESS THAN FIVE HUNDRED KILOWATTS (TOTAL FOR PROJECT);
  (2) $0.09 PER KILOWATT HOUR FOR RUN-OF-RIVER HYDROKINETIC DEVICES WITH
A CAPACITY OF MORE THAN FIVE HUNDRED KILOWATTS BUT LESS THAN FIVE  MEGA-
WATTS (TOTAL FOR PROJECT);
  (3) $0.08 PER KILOWATT HOUR FOR RUN-OF-RIVER HYDROKINETIC DEVICES WITH
A CAPACITY OF MORE THAN FIVE MEGAWATTS (TOTAL FOR PROJECT);
  (4)  $0.12  PER  KILOWATT  HOUR  FOR  TIDAL  ENERGY BASED HYDROKINETIC
DEVICES WITH A CAPACITY OF LESS THAN FIVE HUNDRED KILOWATTS  (TOTAL  FOR
PROJECT), NO DAMS ARE ALLOWED;
  (5)  $0.10  PER  KILOWATT  HOUR  FOR  TIDAL  ENERGY BASED HYDROKINETIC
DEVICES WITH A CAPACITY OF BETWEEN FIVE HUNDRED KILOWATTS AND FIVE MEGA-
WATTS (TOTAL), NO DAMS ARE ALLOWED; AND

S. 2715--A                          6

  (6) $0.09 PER  KILOWATT  HOUR  FOR  TIDAL  ENERGY  BASED  HYDROKINETIC
DEVICES WITH A CAPACITY OF MORE THAN FIVE MEGAWATTS (TOTAL FOR PROJECT),
NO DAMS ARE ALLOWED.
  6.  (A)  THE  NEW  POWER  PURCHASE  AGREEMENTS OFFERED BY UTILITIES TO
PHOTOVOLTAIC GENERATORS IN ACCORDANCE  WITH  SUBDIVISION  FIVE  OF  THIS
SECTION SHALL BE LIMITED BY STATEWIDE CAPACITY CAPS FOR DELIVERY IN EACH
YEAR ACCORDING TO THE FOLLOWING TABLE:
     FOR THE YEAR...     NOT MORE THAN...
     2010                 94 MEGAWATTS
     2011                113 MEGAWATTS
     2012                135 MEGAWATTS
     2013                161 MEGAWATTS
     2014                193 MEGAWATTS
     2015                231 MEGAWATTS
     2016                277 MEGAWATTS
     2017                331 MEGAWATTS
     2018                397 MEGAWATTS
     2019                475 MEGAWATTS
     2020                569 MEGAWATTS.
  (B)  EACH  UTILITY  SHALL  OFFER POWER PURCHASE AGREEMENTS DURING EACH
CALENDAR QUARTER UNTIL THE TOTAL CAPACITY UNDER CONTRACT IS EQUAL TO THE
STATEWIDE CAPACITY FOR THE YEAR SHOWN IN THE TABLE ESTABLISHED BY  PARA-
GRAPH  (A)  OF  THIS SUBDIVISION, DIVIDED BY FOUR, AND MULTIPLIED BY THE
FRACTION OF STATEWIDE LOAD SERVED BY THAT UTILITY. IF, DURING ANY  YEAR,
THE  STATEWIDE  TOTAL  OF NEW POWER PURCHASE AGREEMENTS EXECUTED IS LESS
THAN THE AMOUNT SHOWN IN THE TABLE ABOVE, THE SHORTFALL SHALL  BE  ADDED
TO THE AMOUNT FOR THE FOLLOWING YEAR.
  (C)  NO  SINGLE  DEVELOPER, INCLUDING ITS SUBSIDIARIES AND AFFILIATES,
SHALL BE OFFERED POWER PURCHASE AGREEMENTS  TOTALING  MORE  THAN  TWENTY
PERCENT OF THE STATEWIDE TOTAL FOR ANY YEAR AS SHOWN IN THE TABLE ABOVE.
  (D) TWENTY-FIVE PERCENT OF THE STATEWIDE CAPACITY FOR EACH YEAR ESTAB-
LISHED  IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE RESERVED FOR RESI-
DENTIAL PHOTOVOLTAIC SYSTEMS. HOWEVER, IF DURING ANY  CALENDAR  QUARTER,
THE  STATEWIDE TOTAL OF POWER PURCHASE AGREEMENTS FOR RESIDENTIAL PHOTO-
VOLTAIC SYSTEMS IS LESS THAN TWENTY PERCENT OF THE TOTAL  SHOWN  IN  THE
TABLE  ABOVE  DIVIDED  BY FOUR, THE COMMISSION MAY CONSIDER LOWERING THE
CAPACITY RESERVED FOR RESIDENTIAL SYSTEMS  FOR  THE  FOLLOWING  CALENDAR
QUARTER.  ONCE THE REDUCED PERCENTAGE AS DETERMINED BY THE COMMISSION IS
REACHED IN ANY SUBSEQUENT QUARTER THE RESERVATION SHALL BE  RESTORED  TO
TWENTY-FIVE PERCENT FOR THE NEXT FOLLOWING QUARTER.
  (E)  NO  MORE  THAN  TWENTY-FIVE PERCENT OF THE STATEWIDE CAPACITY FOR
EACH YEAR ESTABLISHED IN PARAGRAPH (A)  OF  THIS  SUBDIVISION  SHALL  BE
OFFERED  TO  PHOTOVOLTAIC SYSTEMS WITH A CAPACITY GREATER THAN TWO THOU-
SAND KILOWATTS.
  7. (A) DURING THE TERM OF A  POWER  PURCHASE  AGREEMENT  ENTERED  INTO
UNDER  THE  TARIFF  ESTABLISHED  IN  THIS SECTION, NEITHER THE RENEWABLE
ENERGY GENERATOR RECEIVING PAYMENTS UNDER SUCH A CONTRACT, NOR THE UTIL-
ITY MAKING SUCH PAYMENTS, SHALL EARN OR RECEIVE RENEWABLE ENERGY CERTIF-
ICATES (RECS). THE RENEWABLE ENERGY GENERATION FOR WHICH  SUCH  PAYMENTS
ARE  MADE  SHALL  BE SUBTRACTED FROM THE STATEWIDE OBLIGATIONS UNDER THE
NEW YORK STATE RENEWABLE PORTFOLIO STANDARD (RPS), AND THUS REDUCE  EACH
OBLIGOR'S SHARE OF RESPONSIBILITY UNDER THE RPS.
  (B)  THE  RENEWABLE  ENERGY GENERATOR RECEIVING PAYMENTS UNDER A POWER
PURCHASE AGREEMENT ESTABLISHED IN THIS SECTION SHALL NOT BE PREVENTED BY
THIS SECTION FROM RECEIVING CREDITS OTHER THAN THOSE ESTABLISHED BY  THE
NEW  YORK  STATE  RPS, SUCH AS CREDITS UNDER THE REGIONAL GREENHOUSE GAS

S. 2715--A                          7

INITIATIVE OR OTHER CARBON CREDITS. SUCH OTHER CREDITS SHALL BECOME  THE
PROPERTY  OF THE UTILITY MAKING PAYMENTS UNDER THE POWER PURCHASE AGREE-
MENT. PROCEEDS FROM THE SALE OF ANY SUCH CREDITS BY A UTILITY  SHALL  BE
APPLIED  AGAINST ANY RECOVERY OF COSTS SOUGHT BY THAT UTILITY UNDER THIS
SECTION.
  (C) THE RENEWABLE ENERGY GENERATOR RECEIVING PAYMENTS  UNDER  A  POWER
PURCHASE AGREEMENT ESTABLISHED IN THIS SECTION SHALL NOT BE PREVENTED BY
THIS  ARTICLE FROM RECEIVING ANY AVAILABLE FEDERAL OR STATE TAX CREDITS,
HOWEVER GENERATORS RECEIVING REBATES FOR RENEWABLE SYSTEMS FUNDED  UNDER
THE  NEW YORK STATE SYSTEM BENEFIT CHARGE WILL HAVE THE AMOUNT FUNDED BY
THEIR POWER PURCHASE AGREEMENT DIMINISHED BY THE AMOUNT OF THAT REBATE.
  8. (A) BEGINNING FEBRUARY FIRST, TWO THOUSAND ELEVEN, AND  EVERY  YEAR
THEREAFTER,  THE  COMMISSION SHALL REVIEW AND ADJUST RATES ADOPTED UNDER
THE TARIFF IN THIS SECTION AS NECESSARY TO  ACHIEVE  ADEQUATE  RENEWABLE
ENERGY DEVELOPMENT; ACCOUNT FOR INFLATION; PROVIDE FOR A REASONABLE, BUT
NOT  EXCESSIVE,  PROFIT  TO  OWNERS OF RENEWABLE ELECTRICITY GENERATORS;
PROMOTE DEVELOPMENT OF COMMUNITY-BASED ENERGY DEVELOPMENT PROJECTS;  AND
MINIMIZE  COSTS  TO RATEPAYERS OF A UTILITY'S COMPLIANCE WITH APPLICABLE
STATE OR FEDERAL RENEWABLE ENERGY STANDARDS. IT IS THE  INTENT  OF  THIS
SECTION THAT THE RATES SHALL BE REDUCED AT A MINIMUM BY FIVE PERCENT PER
YEAR,  SO  LONG  AS  THE  REQUIREMENTS OF THIS SUBDIVISION ARE MET. ONCE
ADOPTED, THE ADJUSTED  RATES  SHALL  APPLY  TO  ALL  TWENTY  YEAR  POWER
PURCHASE  AGREEMENTS  SUBSEQUENTLY  ENTERED  INTO  UNTIL THE NEXT ANNUAL
ADJUSTMENT GOES INTO EFFECT.
  (B) THE COMMISSION MAY, AFTER NOTICE  AND  HEARING,  REQUIRE  ELECTRIC
UTILITIES TO ENTER INTO POWER PURCHASE AGREEMENTS WITH RENEWABLE PROJECT
OWNERS  AT  RATES IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION AS
ARE NECESSARY TO ACHIEVE ADEQUATE RENEWABLE ENERGY DEVELOPMENT UPON SUCH
TERMS NEEDED TO ENSURE ACCOMPLISHMENT OF COMMUNITY-BASED ENERGY DEVELOP-
MENT PROJECT PROCUREMENT GOALS AND ADEQUATE LOCAL BENEFITS.
  9. THE TARIFF IN THIS SECTION MUST  PROVIDE  THAT  ELECTRIC  UTILITIES
WILL INTERCONNECT RENEWABLE ENERGY GENERATORS TO THE ELECTRICAL DISTRIB-
UTION  SYSTEM  UNDER  THE  JURISDICTION OF THE COMMISSION TO THE MAXIMUM
EXTENT OF STATE JURISDICTION ALLOWED UNDER FEDERAL LAW.  THE  COMMISSION
SHALL  CONSULT  WITH  THE FEDERAL ENERGY REGULATORY COMMISSION AND OTHER
APPROPRIATE ENTITIES TO  ESTABLISH  AN  INTERCONNECTION  REQUEST  REVIEW
PROCEDURE  TO  PROMPTLY  AND  EFFICIENTLY  DETERMINE  WHETHER OR NOT THE
COMMISSION MAY INTERCONNECT A RENEWABLE ENERGY GENERATOR  THAT  REQUESTS
INTERCONNECTION  UNDER  STATE  AUTHORITY.    THE  COMMISSION SHALL ISSUE
ORDERS NECESSARY TO ESTABLISH INTERCONNECTION TARIFFS FOR THE  STANDARD-
IZED,  COST-EFFECTIVE,  TIMELY,  RELIABLE,  AND  SAFE INTERCONNECTION OF
RENEWABLE ELECTRICITY GENERATORS UNDER STATE AUTHORITY.  THE  COMMISSION
SHALL  ESTABLISH  STANDARD INTERCONNECTION CONTRACTS AND INTERCONNECTION
SCHEDULES. THE COSTS ASSOCIATED WITH THE  INTERCONNECTION  OF  RENEWABLE
ELECTRICITY GENERATORS, INCLUDING DIRECT INTERCONNECTION COSTS, DISTRIB-
UTION  SYSTEM  ENHANCEMENTS,  AND ELECTRIC UTILITY COMPLIANCE COSTS, ARE
RECOVERABLE AS PROVIDED IN SUBDIVISION ELEVEN OF THIS SECTION.
  10. THE COMMISSION SHALL APPROVE A STANDARD CONTRACT TO BE USED IN ALL
POWER PURCHASE  AGREEMENTS  UNDER  THE  TARIFF  ESTABLISHED  UNDER  THIS
SECTION.  THE  CONTRACT  SHALL  (A) INCLUDE THE LEVELIZED PRICE PAID FOR
EACH KILOWATT HOUR GENERATED, AND THE  DURATION  OF  THE  CONTRACT;  (B)
SHALL  NOT  INCLUDE PENALTIES FOR FAILURE TO DELIVER A SPECIFIC QUANTITY
OF RENEWABLE ENERGY, BUT SHALL PAY FOR  ENERGY  AS  DELIVERED;  AND  (C)
CONTRACTS  FOR PHOTOVOLTAIC GENERATORS MAY BE CANCELLED IF THE RENEWABLE
GENERATING SYSTEM IS NOT COMPLETED AND  OPERATING  WITHIN  A  REASONABLE

S. 2715--A                          8

PERIOD  OF  TIME  AFTER  CONTRACT EXECUTION, AS DETERMINED BY THE PUBLIC
SERVICE COMMISSION.
  11.  THE  COMMISSION  SHALL  REQUIRE  AN ELECTRIC UTILITY TO FILE RATE
SCHEDULES CONTAINING PROVISIONS FOR THE AUTOMATIC ADJUSTMENT OF  CHARGES
FOR ELECTRIC UTILITY SERVICE IN DIRECT RELATION TO THE COST OF ELECTRIC-
ITY  PURCHASED  FROM  RENEWABLE  ELECTRICITY GENERATORS UNDER THE TARIFF
ESTABLISHED UNDER SUBDIVISION FIVE OF THIS SECTION AND ALL  OTHER  COSTS
REQUIRED TO COMPLY WITH THE TARIFF.  THE ELECTRIC UTILITY SHALL BE ENTI-
TLED  TO  RECOVER COSTS ASSOCIATED WITH PAYMENTS MADE TO RENEWABLE ELEC-
TRICITY GENERATORS PURSUANT TO THIS SECTION, AND REASONABLE  ADMINISTRA-
TIVE  COSTS. THE COMMISSION SHALL BE AUTHORIZED TO PROVIDE INCENTIVES TO
UTILITIES THAT FAITHFULLY PERFORM THE REQUIREMENTS  SET  FORTH  IN  THIS
ACT.  SUCH  INCENTIVES  SHALL  TAKE INTO ACCOUNT THE POTENTIAL FOR POWER
PURCHASE AGREEMENTS ENTERED INTO BY UTILITIES PURSUANT TO THIS ACT TO BE
IMPUTED AS DEBT.
  12. RENEWABLE ENERGY GENERATORS, QUALIFYING OWNERS  THAT  OWN  ALL  OR
PART OF A RENEWABLE ENERGY GENERATOR, AND ELECTRIC UTILITIES SHALL, UPON
REQUEST,  PROVIDE THE COMMISSION ANY INFORMATION THAT MAY BE RELEVANT TO
THE COMMISSION PERFORMING ITS DUTIES UNDER THIS SECTION,  INCLUDING  BUT
NOT LIMITED TO ASSESSMENT OF PROJECT DEVELOPMENT COSTS, EQUIPMENT COSTS,
ELECTRICITY  PRODUCTION  COSTS,  INTERCONNECTION  COSTS,  AUTOMATIC RATE
ADJUSTMENTS, AND COMPLIANCE COSTS.
  13. BY JANUARY FIRST OF TWO THOUSAND ELEVEN AND TWO  THOUSAND  TWELVE,
AND EVERY FOUR YEARS THEREAFTER, THE COMMISSION SHALL SUBMIT A REPORT TO
THE GOVERNOR AND LEGISLATURE THAT SHALL INCLUDE THE FOLLOWING:
  (A)  THE  NUMBER OF NEW RENEWABLE ELECTRICITY GENERATORS IN THIS STATE
AND THE ENVIRONMENTAL EFFECTS OF THE ADDITION OF THOSE GENERATORS;
  (B) RECOMMENDATIONS FOR LEGISLATION AND CHANGES TO THE RATES IN SUBDI-
VISION FOUR OF THIS SECTION, IF ANY; AND
  (C) ACTIONS TAKEN BY THE COMMISSION TO  IMPLEMENT  THE  PROVISIONS  OF
THIS  SECTION  AND  TO  USE  THE  TARIFF TO ACHIEVE THE RENEWABLE ENERGY
OBJECTIVES AND STANDARDS.
  S 4. This act shall take effect immediately.

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Senate Bill S2715

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Bill Amendments

2009-S2715 - Details

2009-S2715 - Summary

2009-S2715 - Sponsor Memo

2009-S2715 - Bill Text download pdf

2009-S2715A (ACTIVE) - Details

2009-S2715A (ACTIVE) - Summary

2009-S2715A (ACTIVE) - Sponsor Memo

2009-S2715A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2715

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Sponsored By

Antoine M. Thompson

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Bill Amendments

2009-S2715 - Details

2009-S2715 - Summary

2009-S2715 - Sponsor Memo

2009-S2715 - Bill Text download pdf

2009-S2715A (ACTIVE) - Details

2009-S2715A (ACTIVE) - Summary

2009-S2715A (ACTIVE) - Sponsor Memo

2009-S2715A (ACTIVE) - Bill Text download pdf

Comments