NY State Senate Bill 2013-S6958A

Senate Bill S6958A

2013-2014 Legislative Session

Relates to "power purchase agreements" concerning energy technologies eligible for net metering

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2014	committed to rules
May 19, 2014	advanced to third reading
May 14, 2014	2nd report cal.
May 13, 2014	1st report cal.667
May 08, 2014	print number 6958a
May 08, 2014	amend (t) and recommit to energy and telecommunications
Apr 09, 2014	referred to energy and telecommunications

Votes

- May 13, 2014 - Energy And Telecommunications Committee Vote
  S6958A
  
  9
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: May 13, 2014
      
      aye (9)
      
      Carlucci
      
      Flanagan
      
      Griffo
      
      Kennedy
      
      Maziarz
      
      O'Mara
      
      Parker
      
      Ritchie
      
      Robach
      
      aye wr (1)
      
      Peralta
      
      excused (1)
      
      Dilan

Bill Amendments

Original

A (Active)

2013-S6958 - Details

See Assembly Version of this Bill:: A9516
Current Committee:: Senate Rules
Law Section:: Energy Law
Laws Affected:: Amd §9-102, add §9-104, Energy L
Versions Introduced in 2015-2016 Legislative Session:: S3613, A36

2013-S6958 - Summary

Relates to "power purchase agreements" concerning energy technologies eligible for net metering.

2013-S6958 - Sponsor Memo

                                BILL NUMBER:S6958

TITLE OF BILL:  An act to amend the energy law, in relation to
authorizing power purchase agreements

Purpose:

To allow the full deployment of solar energy systems to school
districts, municipalities and other public entities by making it
permissible for long-term power purchase agreements to be binding on
present and future governing boards.

Summary of Provisions:

Section 1. Defines "Power Purchase Agreement"

Section 2. Amends the energy law to apply the requirements of a
long-term power purchase agreement to current and future governing
boards of school districts and municipalities, except upon cause as
defined in the power purchase agreement. This section also encourages
agencies, municipalities and school districts to consult with NYSERDA,
and specifies that the Commissioner of Education is not required to
develop a pre-approved form for Power Purchase Agreements, but is
authorized to develop rules and regulations related to safety.

Section 3: Sets forth the effective date

Justification:

Solar energy is expanding exponentially in New York State as more
residences and businesses move to take advantage of clean energy while
lowering their own bills. By utilizing power purchase agreements,
solar installers can pay for the up-front cost of installation of the
system, borrow capital from the bank, and have a firm source of
repayment through the profit the company makes from the sale of
electricity to the customer. This is a very positive development,
because it saves the customer money while eliminating the need for a
large up-front capital investment and also creating jobs. In addition,
the more solar energy that is installed, the lower our emissions are
which will allow the state to better meet its environmental goals.

However, we need to do more to promote the use of clean solar energy
by school districts, municipalities and other public entities.

This bill is necessary because state rules and judicial decisions can
act to limit the benefits inherent to a power purchase agreement as it
relates to school districts, municipalities and Boards of Cooperative
Educational Services. Basically, for a power purchase agreement to be
executed and function properly, it must be a long-term contract of 15
years or more. Unfortunately, rules that govern municipal bodies, do
not allow a current Board to commit future boards to these kinds of
costs, except in certain circumstances. One such circumstance is an
energy performance contract. This bill simply allows a power purchase
agreement to operate the same way that an energy performance contract
does under the State Energy Law.  This bill also eliminates the need
for the Commissioner of Education to approve a power purchase
agreement, in order to prevent unwarranted delays.


Fiscal Implications:

None

History:

This is a new bill

Effective Date:

This bill shall take effect immediately.

2013-S6958 - Bill Text download pdf

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

                                  6958

                            I N  S E N A T E

                              April 9, 2014
                               ___________

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

AN  ACT  to  amend  the  energy  law,  in  relation to authorizing power
  purchase agreements

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

  Section  1. Section 9-102 of the energy law is amended by adding a new
subdivision 5 to read as follows:
  5. "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT  IN  CONNECTION  WITH
THE  INSTALLATION,  MAINTENANCE  AND  MANAGEMENT OF A SOLAR PHOTOVOLTAIC
ARRAY, WHERE A THIRD PARTY OWNER  (NON-AGENCY  OR  NON-MUNICIPAL  OWNER)
GENERATES  ELECTRICITY FROM THE SOLAR PHOTOVOLTAIC ARRAY (WHETHER OR NOT
THE SOLAR PHOTOVOLTAIC ARRAY IS LOCATED AT THE POINT OF CONSUMPTION) AND
SELLS THE RESULTING ELECTRICITY TO  AN  AGENCY  OR  MUNICIPALITY  FOR  A
PRICE, VOLUME AND DURATION AS SET FORTH IN THE AGREEMENT.
  S  2.  The energy law is amended by adding a new section 9-104 to read
as follows:
  S 9-104. POWER  PURCHASE  AGREEMENTS.  1.  NOTWITHSTANDING  ANY  OTHER
PROVISION  OF  LAW OR JUDICIAL DECISION (INCLUDING ANY THAT RESTRICT THE
AUTHORITY OF A GOVERNING BODY OF  AN  AGENCY  OR  MUNICIPALITY  TO  BIND
SUBSEQUENT GOVERNING BODIES OF SUCH AGENCY OR MUNICIPALITY), ANY AGENCY,
MUNICIPALITY,  OR  PUBLIC  AUTHORITY, IN ADDITION TO EXISTING POWERS, IS
AUTHORIZED TO ENTER INTO POWER PURCHASE AGREEMENTS OF UP TO  THIRTY-FIVE
YEARS  DURATION,  PROVIDED  THAT THE DURATION OF ANY SUCH CONTRACT SHALL
NOT EXCEED THE REASONABLY EXPECTED USEFUL LIFE OF THE ENERGY  FACILITIES
OR EQUIPMENT SUBJECT TO SUCH AGREEMENT.
  2.  POWER  PURCHASE  AGREEMENTS  SHALL  NOT BE REQUIRED TO INCLUDE THE
CLAUSE SET FORTH IN SUBDIVISION TWO OF SECTION 9-103 OF THIS ARTICLE.
  3. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW  OR  JUDICIAL  DECISION
(INCLUDING  ANY  THAT  RESTRICT  THE AUTHORITY OF A GOVERNING BODY OF AN
AGENCY OR MUNICIPALITY TO BIND SUBSEQUENT GOVERNING BODIES OF SUCH AGEN-
CY OR MUNICIPALITY), POWER PURCHASE AGREEMENTS SHALL ONLY BE VOID, VOID-
ABLE OR TERMINABLE BY EITHER THE THIRD PARTY OWNER OR THE AGENCY,  MUNI-

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

                                                           LBD14604-01-4

S. 6958                             2

CIPALITY  OR PUBLIC AUTHORITY FOR NON-PERFORMANCE BY THE OTHER PARTY, AS
SET FORTH IN THE POWER PURCHASE AGREEMENT.
  4.  IN  THE CASE OF A SCHOOL DISTRICT OR A BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES, A POWER PURCHASE AGREEMENT SHALL BE AN ORDINARY CONTIN-
GENT EXPENSE, AND SHALL IN NO EVENT BE CONSTRUED AS OR DEEMED A LEASE OR
LEASE-PURCHASE OF A BUILDING OR FACILITY, FOR PURPOSES OF THE  EDUCATION
LAW.
  5.  AGENCIES, MUNICIPALITIES, AND PUBLIC AUTHORITIES ARE ENCOURAGED TO
CONSULT WITH AND SEEK ADVICE AND ASSISTANCE  FROM  THE  NEW  YORK  STATE
ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY  CONCERNING POWER PURCHASE
AGREEMENTS.
  6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IN ORDER TO  CONVEY  AN
INTEREST  IN  REAL PROPERTY NECESSARY FOR THE CONSTRUCTION OF FACILITIES
OR THE OPERATION OF EQUIPMENT PROVIDED FOR IN A  POWER  PURCHASE  AGREE-
MENT,  ANY  AGENCY,  MUNICIPALITY  OR  PUBLIC AUTHORITY MAY ENTER INTO A
LEASE OR LICENSE OF SUCH REAL PROPERTY TO WHICH IT HOLDS TITLE OR  WHICH
IS  UNDER  ITS  ADMINISTRATIVE  JURISDICTION  AS  IS  NECESSARY FOR SUCH
CONSTRUCTION OR OPERATION, WITH A POWER PURCHASE AGREEMENT, FOR THE SAME
LENGTH OF TIME AS THE TERM OF SUCH POWER PURCHASE AGREEMENT, AND ON SUCH
TERMS AND CONDITIONS AS MAY BE AGREEABLE TO  THE  PARTIES  THERETO,  AND
NOTWITHSTANDING  THAT SUCH REAL PROPERTY MAY REMAIN USEFUL TO SUCH AGEN-
CY, MUNICIPALITY OR PUBLIC AUTHORITY FOR THE PURPOSE FOR WHICH SUCH REAL
PROPERTY WAS ORIGINALLY ACQUIRED OR DEVOTED OR FOR WHICH SUCH REAL PROP-
ERTY IS BEING USED.
  7. SECTIONS ONE HUNDRED THREE AND ONE HUNDRED NINE-B  OF  THE  GENERAL
MUNICIPAL  LAW  SHALL APPLY TO THE PROCUREMENT OR ACQUISITION OF A POWER
PURCHASE AGREEMENT AS CONTEMPLATED BY THIS SECTION.
  8. THE COMMISSIONER OF EDUCATION SHALL NOT BE REQUIRED  TO  DEVELOP  A
FORM  OF PRE-APPROVED POWER PURCHASE AGREEMENT OR BE REQUIRED TO APPROVE
ANY POWER PURCHASE AGREEMENTS TO BE EXECUTED BY A  PARTY  IN  CONNECTION
WITH THIS, BUT IS AUTHORIZED TO DEVELOP RULES AND REGULATIONS CONCERNING
THE  PROCESS  FOR  ISSUING  BUILDING  PERMITS  AND OPERATIONAL SAFETY IN
RELATION TO THE INSTALLATION AND OPERATION OF SOLAR PHOTOVOLTAIC ARRAYS.
  S 3. This act shall take effect immediately.

co-Sponsors

2013-S6958A (ACTIVE) - Details

See Assembly Version of this Bill:: A9516
Current Committee:: Senate Rules
Law Section:: Energy Law
Laws Affected:: Amd §9-102, add §9-104, Energy L
Versions Introduced in 2015-2016 Legislative Session:: S3613, A36

2013-S6958A (ACTIVE) - Summary

Relates to "power purchase agreements" concerning energy technologies eligible for net metering.

2013-S6958A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6958A

TITLE OF BILL:  An act to amend the energy law, in relation to energy
technologies eligible for net metering

PURPOSE:

To allow the full deployment of clean energy technologies to school
districts, municipalities and other public entities by making it
permissible for long-term power purchase agreements to be binding on
present and future governing boards.

SUMMARY OF PROVISIONS:

Section 1. Defines "Power Purchase Agreement"

Section 2. Amends the energy law to apply the requirements of a
longterm power purchase agreement to current and future governing
boards of school districts and municipalities, except upon cause as
defined in the power purchase agreement. This section also encourages
agencies, municipalities and school districts to consult with NYSERDA,
and specifies that the Commissioner of Education is not required to
develop a pre-approved form for Power Purchase Agreements, but is
authorized to develop rules and regulations related to safety.

Section 3: Sets forth the effective date

JUSTIFICATION:

Clean and renewable energy technologies are expanding exponentially in
New York State as more residences and businesses move to take
advantage of clean energy while lowering their own bills. By utilizing
power purchase agreements, installers of these energy technologies can
pay for the up-front cost of installation of the system, borrow
capital from the bank, and have a firm source of repayment through the
profit the company makes from the sale of electricity to the customer.
This is a very positive development, because it saves the customer
money while eliminating the need for a large up-front capital
investment and also creating jobs. In addition, the more clean energy
technologies that are installed, the lower our emissions are which
will allow the state to better meet its environmental goals.

However, we need to do more to promote the use of clean energy
technologies by school districts, municipalities and other public
entities.

This bill is necessary because state rules and judicial decisions can
act to limit the benefits inherent to a power purchase agreement as it
relates to school districts, municipalities and Boards of Cooperative
Educational Services. Basically, for a power purchase agreement to be
executed and function properly, it, must he a long-term contract of 15
years or more. Unfortunately, rules that govern municipal bodies, do
not allow a current Board to commit future boards to these kinds of
costs, except in certain circumstances. One such circumstance is an
energy performance contract. This bill simply allows a power purchase
agreement to operate the same way that an energy performance contract
does under the State Energy Law. This bill also eliminates the need


for the Commissioner of Education to approve a power purchase
agreement, in order to prevent unwarranted delays.

FISCAL IMPLICATIONS:

None

HISTORY:

This is a new bill

EFFECTIVE DATE:

This bill shall take effect immediately.

2013-S6958A (ACTIVE) - Bill Text download pdf

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

                                 6958--A

                            I N  S E N A T E

                              April 9, 2014
                               ___________

Introduced  by  Sen. MAZIARZ -- 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 energy  law,  in  relation  to  energy  technologies
  eligible for net metering

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

  Section 1. Section 9-102 of the energy law is amended by adding a  new
subdivision 5 to read as follows:
  5.  "POWER  PURCHASE  AGREEMENT" MEANS AN AGREEMENT IN CONNECTION WITH
THE INSTALLATION, MAINTENANCE AND MANAGEMENT  OF  AN  ENERGY  TECHNOLOGY
ELIGIBLE  FOR  NET  ENERGY  METERING  PURSUANT TO SECTION SIXTY-SIX-J OR
SIXTY-SIX-L OF THE PUBLIC SERVICE LAW, WHERE A THIRD PARTY OWNER (NON-A-
GENCY OR NON-MUNICIPAL OWNER) GENERATES  ELECTRICITY  FROM  SUCH  ENERGY
TECHNOLOGY  (WHETHER  OR  NOT  SUCH  ENERGY TECHNOLOGY IS LOCATED AT THE
POINT OF CONSUMPTION) AND SELLS THE RESULTING ELECTRICITY TO  AN  AGENCY
OR  MUNICIPALITY  FOR  A  PRICE, VOLUME AND DURATION AS SET FORTH IN THE
AGREEMENT.
  S 2. The energy law is amended by adding a new section 9-104  to  read
as follows:
  S  9-104.  POWER  PURCHASE  AGREEMENTS.  1.  NOTWITHSTANDING ANY OTHER
PROVISION OF LAW OR JUDICIAL DECISION (INCLUDING ANY THAT  RESTRICT  THE
AUTHORITY  OF  A  GOVERNING  BODY  OF  AN AGENCY OR MUNICIPALITY TO BIND
SUBSEQUENT GOVERNING BODIES OF SUCH AGENCY OR MUNICIPALITY), ANY AGENCY,
MUNICIPALITY, OR PUBLIC AUTHORITY, IN ADDITION TO  EXISTING  POWERS,  IS
AUTHORIZED  TO ENTER INTO POWER PURCHASE AGREEMENTS OF UP TO THIRTY-FIVE
YEARS DURATION, PROVIDED THAT THE DURATION OF ANY  SUCH  CONTRACT  SHALL
NOT  EXCEED THE REASONABLY EXPECTED USEFUL LIFE OF THE ENERGY FACILITIES
OR EQUIPMENT SUBJECT TO SUCH AGREEMENT.
  2. POWER PURCHASE AGREEMENTS SHALL NOT  BE  REQUIRED  TO  INCLUDE  THE
CLAUSE SET FORTH IN SUBDIVISION TWO OF SECTION 9-103 OF THIS ARTICLE.
  3.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF LAW OR JUDICIAL DECISION
(INCLUDING ANY THAT RESTRICT THE AUTHORITY OF A  GOVERNING  BODY  OF  AN

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

                                                           LBD14604-02-4

S. 6958--A                          2

AGENCY OR MUNICIPALITY TO BIND SUBSEQUENT GOVERNING BODIES OF SUCH AGEN-
CY OR MUNICIPALITY), POWER PURCHASE AGREEMENTS SHALL ONLY BE VOID, VOID-
ABLE  OR TERMINABLE BY EITHER THE THIRD PARTY OWNER OR THE AGENCY, MUNI-
CIPALITY  OR PUBLIC AUTHORITY FOR NON-PERFORMANCE BY THE OTHER PARTY, AS
SET FORTH IN THE POWER PURCHASE AGREEMENT.
  4. IN THE CASE OF A SCHOOL DISTRICT OR A BOARD OF  COOPERATIVE  EDUCA-
TIONAL SERVICES, A POWER PURCHASE AGREEMENT SHALL BE AN ORDINARY CONTIN-
GENT EXPENSE, AND SHALL IN NO EVENT BE CONSTRUED AS OR DEEMED A LEASE OR
LEASE-PURCHASE  OF A BUILDING OR FACILITY, FOR PURPOSES OF THE EDUCATION
LAW.
  5. AGENCIES, MUNICIPALITIES, AND PUBLIC AUTHORITIES ARE ENCOURAGED  TO
CONSULT  WITH  AND  SEEK  ADVICE  AND ASSISTANCE FROM THE NEW YORK STATE
ENERGY RESEARCH AND  DEVELOPMENT  AUTHORITY  CONCERNING  POWER  PURCHASE
AGREEMENTS.
  6.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, IN ORDER TO CONVEY AN
INTEREST IN REAL PROPERTY NECESSARY FOR THE CONSTRUCTION  OF  FACILITIES
OR  THE  OPERATION  OF EQUIPMENT PROVIDED FOR IN A POWER PURCHASE AGREE-
MENT, ANY AGENCY, MUNICIPALITY OR PUBLIC  AUTHORITY  MAY  ENTER  INTO  A
LEASE  OR LICENSE OF SUCH REAL PROPERTY TO WHICH IT HOLDS TITLE OR WHICH
IS UNDER ITS  ADMINISTRATIVE  JURISDICTION  AS  IS  NECESSARY  FOR  SUCH
CONSTRUCTION OR OPERATION, WITH A POWER PURCHASE AGREEMENT, FOR THE SAME
LENGTH OF TIME AS THE TERM OF SUCH POWER PURCHASE AGREEMENT, AND ON SUCH
TERMS  AND  CONDITIONS  AS  MAY BE AGREEABLE TO THE PARTIES THERETO, AND
NOTWITHSTANDING THAT SUCH REAL PROPERTY MAY REMAIN USEFUL TO SUCH  AGEN-
CY, MUNICIPALITY OR PUBLIC AUTHORITY FOR THE PURPOSE FOR WHICH SUCH REAL
PROPERTY WAS ORIGINALLY ACQUIRED OR DEVOTED OR FOR WHICH SUCH REAL PROP-
ERTY IS BEING USED.
  7.  SECTIONS  ONE  HUNDRED THREE AND ONE HUNDRED NINE-B OF THE GENERAL
MUNICIPAL LAW SHALL APPLY TO THE PROCUREMENT OR ACQUISITION OF  A  POWER
PURCHASE AGREEMENT AS CONTEMPLATED BY THIS SECTION.
  8.  THE  COMMISSIONER  OF EDUCATION SHALL NOT BE REQUIRED TO DEVELOP A
FORM OF PRE-APPROVED POWER PURCHASE AGREEMENT OR BE REQUIRED TO  APPROVE
ANY  POWER  PURCHASE  AGREEMENTS TO BE EXECUTED BY A PARTY IN CONNECTION
WITH THIS, BUT IS AUTHORIZED TO DEVELOP RULES AND REGULATIONS CONCERNING
THE PROCESS FOR ISSUING  BUILDING  PERMITS  AND  OPERATIONAL  SAFETY  IN
RELATION TO THE INSTALLATION AND OPERATION OF ENERGY TECHNOLOGIES ELIGI-
BLE   FOR  NET  ENERGY  METERING  PURSUANT  TO  SECTION  SIXTY-SIX-J  OR
SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  S 3. This act shall take effect immediately.

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Senate Bill S6958A

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Sponsored By

George D. Maziarz