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

                                  1375

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of A. CAHILL, HEVESI, ENGLEBRIGHT, ROSENTHAL -- read
  once and referred to the Committee on Energy

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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02770-01-3
              

A. 1375                             2

  (III)  A  DESCRIPTION OF ANY EQUIPMENT OR INSTALLATION SPECIFICATIONS,
SOLICITATIONS, AND PROCUREMENTS IT HAS IMPLEMENTED OR INTENDS TO  IMPLE-
MENT;
  (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.