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

                                  6722

                            I N  S E N A T E

                            February 1, 2010
                               ___________

Introduced  by  Sen.  PARKER -- 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 New York state
  renewable electric generation pilot programs

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

  Section  1.  The public service law is amended by adding a new section
73 to read as follows:
  S 73. NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT PROGRAMS.  1.
THE  COMMISSION SHALL ESTABLISH NEW YORK STATE RENEWABLE ELECTRIC GENER-
ATION PILOT PROGRAMS TO AUTHORIZE THE DEVELOPMENT OF UP TO THREE HUNDRED
MEGAWATTS OF RENEWABLE ELECTRIC CAPACITY STATEWIDE, IN ORDER  TO  STIMU-
LATE THE GROWTH OF CLEAN, AFFORDABLE, AND RELIABLE SOURCES OF ENERGY AND
TO FOSTER NEW PARTNERSHIPS BETWEEN ELECTRIC CORPORATIONS, ENERGY PRODUC-
ERS AND ENERGY CUSTOMERS IN NEW YORK STATE.
  2.  (A)  THE  COMMISSION SHALL OVERSEE THE IMPLEMENTATION OF THE PILOT
PROGRAMS AND SHALL DIRECT ELECTRIC CORPORATIONS TO BUILD OR CAUSE TO  BE
BUILT RENEWABLE ENERGY FACILITIES TO BE FINANCED UNDER TERMS ESTABLISHED
THROUGH  AN  ORDER  OF  THE COMMISSION WHICH SHALL AUTHORIZE CAPITAL AND
OPERATING COSTS TO BE RECOVERED IN THE CORPORATIONS  RATE  BASE  AND  TO
EARN  A  REASONABLE RETURN OVER A PERIOD TO BE DETERMINED BY THE COMMIS-
SION, PROVIDED THAT THE  CORPORATION  SHALL,  AT  MINIMUM,  PROVIDE  THE
COMMISSION WITH THE FOLLOWING:
  (I)  A  DETAILED  DESCRIPTION  AND ECONOMIC EVALUATION OF THE PROPOSED
INVESTMENT;
  (II) A DISCUSSION OF THE COSTS, BENEFITS, AND RISKS OF  THE  PROPOSAL,
INCLUDING  AN  ANALYSIS OF THE COSTS, BENEFITS, AND RATE IMPLICATIONS TO
THE PARTICIPATING CUSTOMERS, TO THE COMPANY'S DEFAULT SERVICE CUSTOMERS,
AND TO THE UTILITY'S DISTRIBUTION CUSTOMERS;
  (III) A DESCRIPTION OF ANY EQUIPMENT OR  INSTALLATION  SPECIFICATIONS,
SOLICITATIONS,  AND PROCUREMENTS IT HAS IMPLEMENTED OR INTENDS TO IMPLE-
MENT;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14206-04-0
              

S. 6722                             2

  (IV) A SHOWING THAT IT HAS MADE REASONABLE EFFORTS  TO  INVOLVE  LOCAL
BUSINESSES IN ITS PROGRAM;
  (V)  EVIDENCE  OF COMPLIANCE WITH ALL APPLICABLE EMISSION LIMITATIONS;
AND
  (VI) A COPY OF ANY CUSTOMER CONTRACTS OR AGREEMENTS TO BE EXECUTED  AS
PART OF THE PROGRAM.
  (B)  RENEWABLE  GENERATION  FACILITIES  ELIGIBLE TO BE CONSTRUCTED AND
FINANCED UNDER THE NEW YORK STATE RENEWABLE  ELECTRIC  GENERATION  PILOT
PROGRAMS SHALL:
  (I)  GENERATE  ELECTRICITY  THROUGH USE OF THE FOLLOWING TECHNOLOGIES:
SOLAR; WIND; PHOTOVOLTAICS; TIDAL; GEOTHERMAL; AND FUEL CELLS; OR
  (II) GENERATE ELECTRICITY THROUGH LOW-IMPACT, RUN-OF-RIVER  HYDROELEC-
TRIC  ELECTRIC GENERATING EQUIPMENT WITH CAPACITY UP TO THIRTY MEGAWATTS
WITH NO NEW STORAGE IMPOUNDMENT;
  (III) BE MANUFACTURED,  INSTALLED  AND  OPERATED  IN  ACCORDANCE  WITH
APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS;
  (IV)  CONNECT  TO THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN
ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
  (V) OPERATE IN COMPLIANCE WITH ANY STANDARDS AND  REQUIREMENTS  ESTAB-
LISHED BY THE COMMISSION; AND
  (VI) BE LOCATED WITHIN THE STATE, INCLUDING FACILITIES THAT CONSIST OF
CUSTOMER-OWNED OR LEASED GENERATORS.
  (C)  AUTHORIZE ELECTRIC CORPORATIONS TO OWN AN EQUITY INTEREST IN SUCH
FACILITIES AND ALLOW  PARTNERSHIPS  WITH  INDEPENDENT  POWER  PRODUCERS,
DEVELOPERS, AND/OR CUSTOMER-OWNED OR LEASED GENERATORS.
  S  2.  The public service commission shall provide an annual report on
or before the first day of June to the governor, the temporary president
of the senate, the speaker of the assembly, the minority leader  of  the
senate,  and  the minority leader of the assembly reporting the progress
of their efforts and the effects of the program on the  environment  and
public.  Such  report  shall identify each facility participating in the
pilot project and shall include, but not be limited to,  information  on
each  energy source or sources used for generation at such facility; the
sum capacity, in megawatts, of all electrical generating equipment  used
by  the facility; the date the facility will begin or has begun generat-
ing electricity; and the number and category of customer-owned or leased
generators.
  S 3. This act shall take effect immediately; provided,  however,  that
not  later  than the one hundred eightieth day after this act shall have
become a law, the public  service  commission  shall  have  in  place  a
competitive process which shall be open to electric corporations.