S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    504
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by M. of A. CARROLL -- read once and referred to the Commit-
   tee on Energy
 
 AN ACT to amend the public service law and the public  authorities  law,
   in relation to establishing a renewable electricity compliance program
   and renewable energy procurements

   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-q to read as follows:
   §  66-Q.  ESTABLISHMENT OF A RENEWABLE ELECTRICITY COMPLIANCE PROGRAM.
 1. AS USED IN THIS SECTION:
   (A) "LOAD SERVING ENTITY" MEANS ANY  ENTITY  THAT  SECURES  ENERGY  TO
 SERVE  THE  ELECTRICAL  ENERGY  REQUIREMENTS OF END-USE CUSTOMERS IN NEW
 YORK STATE AND INCLUDES  THE  DISTRIBUTION  COMPANIES,  ENERGY  SERVICES
 COMPANIES, MUNICIPAL UTILITIES, THE LONG ISLAND POWER AUTHORITY, AND THE
 NEW YORK POWER AUTHORITY.
   (B)  "QUALIFIED  RENEWABLE ENERGY SYSTEMS" MEANS SYSTEMS THAT GENERATE
 ELECTRICITY OR THERMAL ENERGY THROUGH USE OF THE FOLLOWING TECHNOLOGIES:
 PHOTOVOLTAICS,  WIND,  HYDROELECTRIC,  GEOTHERMAL  ELECTRIC,  GEOTHERMAL
 GROUND  SOURCE  HEAT,  SOLAR  THERMAL,  TIDAL ENERGY, WAVE ENERGY, OCEAN
 THERMAL, OR FUEL CELLS WHICH DO NOT UTILIZE A FOSSIL  FUEL  RESOURCE  IN
 THE  PROCESS  OF  GENERATING  ELECTRICITY,  AND IS EITHER LOCATED IN THE
 STATE OF NEW YORK OR LOCATED IN A CONTROL AREA ADJACENT TO THE NEW  YORK
 INDEPENDENT  SYSTEM  OPERATOR CONTROL AREA AND ACCOMPANIED BY DOCUMENTA-
 TION OF A CONTRACT PATH BETWEEN THE GENERATOR AND THE IN-STATE PURCHASER
 THAT INCLUDES TRANSMISSION RIGHTS.
   (C) "RENEWABLE ENERGY CREDITS" OR "RECS" REPRESENT  THE  ENVIRONMENTAL
 ATTRIBUTES  OF  THE ELECTRICITY PRODUCED FROM QUALIFIED RENEWABLE ENERGY
 PROJECTS AND CAN BE SOLD SEPARATELY FROM THE ELECTRICITY ITSELF. ONE REC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05417-01-1

 A. 504                              2
 
 IS GENERATED FOR EVERY MEGAWATT HOUR OF ELECTRICITY PRODUCED BY A QUALI-
 FIED RENEWABLE ENERGY SYSTEM.
   2.  NO  LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-TWO, THE COMMIS-
 SION SHALL ESTABLISH A PROGRAM TO REQUIRE  THAT  A  MINIMUM  OF  SEVENTY
 PERCENT  OF  THE  ELECTRICITY  SECURED  BY LOAD SERVING ENTITIES FOR ALL
 END-USE CUSTOMERS IN NEW YORK STATE IN TWO THOUSAND THIRTY-TWO SHALL  BE
 GENERATED BY RENEWABLE ENERGY SYSTEMS.
   3.  THE  COMMISSION  SHALL  SET  BIENNIAL  MINIMUM PERCENTAGES FOR THE
 PROGRAM PURSUANT TO THE FOLLOWING SCHEDULE, AND BY DECEMBER THIRTY-FIRST
 OF THE YEAR SPECIFIED ALL LOAD-SERVING ENTITIES  MUST  COMPLY  WITH  THE
 BELOW PERCENTAGES OF THE ELECTRICITY THEY SECURE FOR END-USE CUSTOMERS:
   (A) 2022: 30% FROM RENEWABLE ENERGY SYSTEMS;
   (B) 2024: 38% FROM RENEWABLE ENERGY SYSTEMS;
   (C) 2026: 46% FROM RENEWABLE ENERGY SYSTEMS;
   (D) 2028: 54% FROM RENEWABLE ENERGY SYSTEMS;
   (E) 2030: 62% FROM RENEWABLE ENERGY SYSTEMS; AND
   (F) 2032: 70% FROM RENEWABLE ENERGY SYSTEMS.
   4. SPECIFICALLY, ALL LOAD SERVING ENTITIES ARE REQUIRED TO COMPLY WITH
 THE  ABOVE PERCENTAGES BY PURCHASING RECS, EITHER FROM QUALIFIED RENEWA-
 BLE ENERGY PROJECTS DIRECTLY OR FROM THE NEW YORK  ENERGY  RESEARCH  AND
 DEVELOPMENT  AUTHORITY  THROUGH  THEIR  ANNUAL  SALES  OF  THE RECS THEY
 ACQUIRE FROM QUALIFIED RENEWABLE ENERGY SYSTEMS  VIA  NET-METERING,  THE
 VALUE   OF  DISTRIBUTED  ENERGY  RESOURCES  PROGRAM,  OR  LONG-TERM  REC
 CONTRACTS.
   5. IF A LOAD SERVING ENTITY FAILS TO COMPLY WITH THE ABOVE PERCENTAGES
 OF THE ELECTRICITY THEY SECURE FOR END-USE CUSTOMERS COMING FROM  QUALI-
 FIED  RENEWABLE ENERGY PROJECTS IN ANY GIVEN YEAR, THEY WILL BE REQUIRED
 TO PAY AN ALTERNATIVE COMPLIANCE PAYMENT, WHICH  SHALL  BE  SET  AT  ONE
 HUNDRED  TWENTY-FIVE  PERCENT  OF  THE  PREVIOUS  YEAR'S NEW YORK ENERGY
 RESEARCH AND DEVELOPMENT AUTHORITY REC  SALE  PRICE  MULTIPLIED  BY  THE
 NUMBER  OF RECS THEY ARE SHORT OF THE REQUIREMENT. LOAD SERVING ENTITIES
 SHALL BE PERMITTED TO USE ANY  EXTRA  RECS  THEY  PURCHASE  ABOVE  THEIR
 REQUIREMENT  IN A GIVEN YEAR FOR MEETING THEIR COMPLIANCE REQUIREMENT IN
 THE SUBSEQUENT TWO YEARS.
   6. AS PART OF THIS PROGRAM, THE COMMISSION SHALL ALSO:
   (A) SET A MINIMUM REQUIREMENT OF SIX  THOUSAND  MEGAWATTS  ALTERNATING
 CURRENT  OF DISTRIBUTED SOLAR TO BE IN COMMERCIAL OPERATION IN THE STATE
 BY DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SEVEN, AND SHALL  CONSIDER
 THIS REQUIREMENT IN ALL DECISIONS ON NET-METERING, THE VALUE OF DISTRIB-
 UTED ENERGY RESOURCES, AND ANY OTHER RELATED MATTERS.
   (B)  SET  A MINIMUM REQUIREMENT OF NINE THOUSAND MEGAWATTS ALTERNATING
 CURRENT OF OFFSHORE WIND TO BE IN COMMERCIAL OPERATION SERVING THE STATE
 BY TWO THOUSAND THIRTY-SEVEN.
   (C) SET THE REQUIREMENT FOR ONE HUNDRED EIGHTY-FIVE  TRILLION  BRITISH
 THERMAL UNITS OF CUSTOMER-LEVEL ENERGY REDUCTION STATE WIDE BY TWO THOU-
 SAND TWENTY-SEVEN, WITH THIRTY-ONE TRILLION BRITISH THERMAL UNITS COMING
 FROM AN INCREASE IN UTILITY-LEVERAGED ENERGY EFFICIENCY INVESTMENTS.
   §  2.  The  public  authorities law is amended by adding a new section
 1884 to read as follows:
   § 1884. ESTABLISHMENT OF RENEWABLE ENERGY PROCUREMENTS.  1.  NO  LATER
 THAN  JANUARY FIRST, TWO THOUSAND TWENTY-TWO, THE AUTHORITY SHALL ESTAB-
 LISH A PROGRAM TO CONDUCT ANNUAL PROCUREMENTS THROUGH TWO THOUSAND THIR-
 TY FOR LARGE SCALE SOLAR AND ON-SHORE WIND PROJECTS TO ENTER INTO  LONG-
 TERM  RENEWABLE ENERGY CREDIT CONTRACTS, INDEXED RENEWABLE ENERGY CREDIT
 CONTRACTS, OR BUNDLED CONTRACTS, AND ALSO  PUBLISH  A  SCHEDULE  OF  THE

 A. 504                              3
 
 PLANNED  PROCUREMENT  AMOUNTS  AND THE TIMING FOR THE COMING THREE YEARS
 UPDATED ANNUALLY.
   2.  FOR  THE PURPOSES OF THIS SECTION, "RENEWABLE ENERGY CREDIT" SHALL
 BE DEFINED AS IN SECTION SIXTY-SIX-Q OF THE PUBLIC SERVICE LAW.
   § 3. This act shall take effect immediately.