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

                                  7840

                            I N  S E N A T E

                              May 16, 2016
                               ___________

Introduced  by  Sen.  GRIFFO -- 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 establishing the
  New York state clean energy tech production program

  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
66-o to read as follows:
  S 66-O. NEW YORK STATE CLEAN ENERGY TECH PRODUCTION  PROGRAM.  1.  (A)
THE  COMMISSION  SHALL,  WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF
THIS SECTION, COMMENCE A PROCEEDING TO ESTABLISH A SELF-DIRECTED PROGRAM
FOR ITS INDUSTRIAL, COMMERCIAL AND LARGE USERS, IN  ORDER  TO  STIMULATE
THE  GROWTH AND ADOPTION OF MORE EFFICIENT USE OF ENERGY, GREATER USE OF
ADVANCED ENERGY MANAGEMENT PRODUCTS,  DEEPER  PENETRATION  OF  RENEWABLE
ENERGY   RESOURCES  SUCH  AS  WIND,  SOLAR,  GEOTHERMAL,  AND  ANAEROBIC
DIGESTION, WIDER DEPLOYMENT OF "DISTRIBUTED" ENERGY RESOURCES,  SUCH  AS
MICRO  GRIDS,  ROOF-TOP  SOLAR,  FUEL  CELLS  AND  OTHER  ON-SITE  POWER
SUPPLIES, AND STORAGE.
  2. THE COMMISSION, IN  COLLABORATION  WITH  THE  UTILITIES  AND  LARGE
INDUSTRIAL CUSTOMERS, SHALL DEVELOP, OVERSEE AND ISSUE GUIDELINES ESTAB-
LISHING  RULES  AND PRINCIPLES FOR THE SELF-DIRECTED PROGRAM WHICH SHALL
INCLUDE THE FOLLOWING ELEMENTS:
  (A) A PROGRAM STRUCTURE THAT ALLOWS INDUSTRIAL, COMMERCIAL  AND  LARGE
USERS  TO  TREAT  THEIR  EXISTING  AND  FUTURE  CLEAN ENERGY SURCHARGES;
INCLUDING, BUT NOT LIMITED TO, SURCHARGES TO SUPPORT  THE  CLEAN  ENERGY
FUND,  THE SYSTEM BENEFITS CHARGE, THE RENEWABLE PORTFOLIO STANDARD, THE
ENERGY EFFICIENCY PORTFOLIO STANDARD AND  ENERGY  EFFICIENCY  TRANSITION
IMPLEMENTATION  PLANS  AS DEDICATED FUNDS FOR ENERGY EFFICIENCY, GREATER
USE OF ADVANCED ENERGY MANAGEMENT PRODUCTS, DEEPER PENETRATION OF RENEW-
ABLE ENERGY RESOURCES SUCH AS WIND,  SOLAR,  GEOTHERMAL,  AND  ANAEROBIC
DIGESTION,  WIDER  DEPLOYMENT OF "DISTRIBUTED" ENERGY RESOURCES, SUCH AS
MICRO  GRIDS,  ROOF-TOP  SOLAR,  FUEL  CELLS  AND  OTHER  ON-SITE  POWER
SUPPLIES, AND STORAGE THROUGH AN ENERGY SAVINGS ACCOUNT.

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

                                                           LBD15485-01-6

S. 7840                             2

  (B)  THE  SELF-DIRECTED  PROGRAM  SHALL BE AVAILABLE TO ALL INDIVIDUAL
CUSTOMERS WITH A THIRTY-SIX MONTH AVERAGE DEMAND  OF  TWO  MEGAWATTS  OR
GREATER AS WELL AS CUSTOMERS WITH AN AGGREGATED THIRTY-SIX MONTH AVERAGE
DEMAND  OF  FOUR  MEGAWATTS  OR  GREATER  AS  LONG AS ONE OR MORE OF THE
ACCOUNTS  BEING  AGGREGATED  BY  THE  CUSTOMER HAS AT LEAST A THIRTY-SIX
MONTH AVERAGE DEMAND OF ONE MEGAWATT.
  (C) A MECHANISM TO RECOUP PAID FUNDS FROM SELF-DIRECTED  CUSTOMERS  IF
IT IS DETERMINED THAT FUNDS CONTAINED IN THE ENERGY SAVINGS ACCOUNT WERE
UTILIZED  ERRONEOUSLY  OR  IF  PLANNED ENERGY EFFICIENCY SAVINGS DID NOT
ACTUALLY OCCUR.
  (D) A  REQUIREMENT  THAT  AFTER  SEVEN  YEARS  ANY  UNUSED  SURCHARGES
CONTAINED  IN  THE  ENERGY  SAVING  ACCOUNT  SHALL BE MADE AVAILABLE FOR
ORIGINAL PURPOSES OF THE SURCHARGE.
  (E) A REQUIREMENT TO COLLECT AND  ESTABLISH  SELF-DIRECTED  CUSTOMERS'
BASELINE ENERGY USE DATA.
  (F)  A  METHOD  TO  MEASURE  AND VERIFY ALL CLAIMED ENERGY OBJECTIVES,
USING THE SAME STANDARDS FOR  DATA  COLLECTION  AS  OTHER  EXISTING  AND
FUTURE CLEAN ENERGY SURCHARGES.
  (G)  OFFERING  SELF-DIRECTED  CUSTOMERS MULTI-YEAR TIME FRAMES GREATER
THAN THIRTY-FIVE MONTHS IN WHICH TO EXPEND AGGREGATED ENERGY  EFFICIENCY
FEES.
  (H)  A  MEANS  TO  CALCULATE  ENERGY  OPTIMIZATION  ESTABLISHED BY THE
COMMISSION AND BASED ON ANNUAL ELECTRICITY USAGE, PROVIDED THAT:
  (1) ANNUAL ELECTRICITY USAGE SHALL BE NORMALIZED SO  THAT  NEITHER  OF
THE  FOLLOWING  ARE  INCLUDED  IN  THE  CALCULATION OF THE PERCENTAGE OF
INCREMENTAL ENERGY SAVINGS: (I) CHANGES IN ELECTRICITY USAGE BECAUSE  OF
CHANGES IN BUSINESS ACTIVITY LEVELS NOT ATTRIBUTABLE TO ENERGY OPTIMIZA-
TION;  (II)  CHANGES  IN  ELECTRICITY USAGE BECAUSE OF THE INSTALLATION,
OPERATION, OR TESTING OF POLLUTION CONTROL EQUIPMENT.
  (2) SAVINGS MAY ALSO BE CALCULATED ON THE AVERAGE NUMBER  OF  MEGAWATT
HOURS  OF  ELECTRICITY SOLD BY THE ELECTRIC PROVIDER ANNUALLY DURING THE
PREVIOUS THREE YEARS TO RETAIL CUSTOMERS IN THIS STATE.
  (I) THE SELF-DIRECTED CUSTOMER MUST DEVELOP A SELF-DIRECTED  OPTIMIZA-
TION  PLAN.  SUCH PLAN SHALL OUTLINE HOW THE CUSTOMER INTENDS TO ACHIEVE
THE GOALS OF THE SELF-DIRECTED PROGRAM.
  (J) A CUSTOMER IMPLEMENTING A SELF-DIRECTED ENERGY  OPTIMIZATION  PLAN
SHALL  PROVIDE  A BRIEF REPORT BIANNUALLY DOCUMENTING THE MEASURES TAKEN
TO MEET THE GOALS OF THE SELF-DIRECTED PROGRAM. THE REPORT SHALL PROVIDE
SUFFICIENT INFORMATION FOR THE UTILITIES AND THE COMMISSION  TO  MONITOR
PROGRESS TOWARD THE GOALS IN THE SELF-DIRECTED PLAN AND TO DEVELOP RELI-
ABLE  ESTIMATES  OF THE ENERGY SAVINGS, RENEWABLE POWER GENERATED AND/OR
THE DEPLOYMENT OF DISTRIBUTED ENERGY RESOURCES THAT ARE  BEING  ACHIEVED
FROM SELF-DIRECTED PLANS.
  (K)  PARTICIPANTS  WILL HAVE THE OPPORTUNITY TO SELF-DIRECT A MAJORITY
OF THEIR OWN CONTRIBUTIONS TO QUALIFYING  PROJECTS,  PROVIDED,  HOWEVER,
THAT  A PORTION OF THE CONTRIBUTIONS, EQUAL TO NO MORE THAN ONE PERCENT,
IS ALLOCATED TO SUPPORT PROGRAM ADMINISTRATION AND EVALUATION,  MEASURE-
MENT AND VERIFICATION.
  3.  THE  COMMISSION  SHALL  PROVIDE  AN ANNUAL REPORT ON OR BEFORE THE
FIRST DAY OF JANUARY 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,  ON  THE  CLEAN  ENERGY  TECH
PRODUCTION PROGRAM.
  S 2. This act shall take effect immediately.