S T A T E   O F   N E W   Y O R K
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                                  3847

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2011
                               ___________

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

AN ACT to amend the public service law and the public  authorities  law,
  in relation to clean energy development

  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-m to read as follows:
  S 66-M. CLEAN ENERGY DEVELOPMENT. 1. FOR THE PURPOSES OF THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "CLEAN ENERGY" MEANS ELECTRIC ENERGY SUPPLIED TO CONSUMERS THROUGH
A TRANSMISSION OR DISTRIBUTION SYSTEM USING CLEAN ENERGY TECHNOLOGIES.
  (B) "CLEAN ENERGY TECHNOLOGIES" MEANS ELECTRICITY GENERATION TECHNOLO-
GIES THAT PRODUCE ELECTRICITY USING SOLAR THERMAL ENERGY, PHOTOVOLTAICS,
WIND,  FUEL  CELLS,  GEOTHERMAL,  METHANE  WASTE AND SUSTAINABLY MANAGED
BIOMASS AND THERMAL ENERGY PRODUCED BY SOLAR  TECHNOLOGIES  AND  THERMAL
ENERGY TRANSFER FROM SURFACE WATER, GROUND WATER OR THE EARTH.  IF AFTER
THE  EFFECTIVE DATE OF THIS SECTION, NEW ENERGY TECHNOLOGIES EMERGE THAT
WERE UNFORESEEABLE AT THE TIME OF SUCH EFFECTIVE DATE  THE  COMMISSIONER
OF  ENVIRONMENTAL  CONSERVATION MAY DESIGNATE SUCH TECHNOLOGIES AS CLEAN
ENERGY TECHNOLOGIES BASED UPON A FINDING THAT THE AIR, WATER, ECOSYSTEM,
PUBLIC HEALTH AND WASTE DISPOSAL IMPACTS OF SUCH  NEW  TECHNOLOGIES  ARE
COMPARABLE TO THOSE OF THE CLEAN ENERGY TECHNOLOGIES OTHERWISE LISTED IN
THIS  PARAGRAPH.  ANY SUCH DESIGNATION SHALL ONLY TAKE PLACE FOLLOWING A
COMPLETE OPPORTUNITY FOR PUBLIC REVIEW AND COMMENT CONSISTENT  WITH  THE
STATE ADMINISTRATIVE PROCEDURE ACT.
  (C)  "LOAD  SERVING  ENTITY"  MEANS  ANY PERSON, CORPORATION, COMPANY,
PARTNERSHIP, ASSOCIATION, PRIVATE, MUNICIPAL  AND  STATE  UTILITIES,  OR
OTHER LEGAL ENTITY SELLING ELECTRIC POWER TO END-USE CUSTOMERS.
  (D)  "SOLID  WASTE" SHALL HAVE THE SAME MEANING AS IS ASCRIBED TO SUCH
TERM PURSUANT TO SECTION 27-0501 OF THE ENVIRONMENTAL CONSERVATION LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00158-01-1
              

A. 3847                             2

  (E) "SUSTAINABLY MANAGED BIOMASS" MEANS  ANAEROBIC  DIGESTION  OF  ANY
WASTE  OR  COMBUSTION OF ANY OF THE FOLLOWING SUBSTANCES: CAPTURED LAND-
FILL METHANE, SECONDARY WOOD WASTE (WHICH SHALL INCLUDE ONLY NON-TREATED
WOOD WASTE AND SHALL BE LIMITED TO SAWDUST, WOOD CHIPS AND WOOD SHAVINGS
PRODUCED  AS  BY-PRODUCTS IN THE MILLING, PROCESSING OR MANUFACTURING OF
WOOD PRODUCTS), WOODY AGRICULTURAL WASTE AND SUSTAINABLE BIO-CROPS. SUCH
TERM SHALL NOT INCLUDE COMBUSTION OR PYROLYSIS OF SOLID WASTES,  TIMBER,
FOREST  FLOOR  SWEEPINGS  AND  HERBACEOUS  CROP RESIDUES, WHETHER OR NOT
ENERGY IS RECOVERED THEREFROM.
  2. WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE  OF  THIS  SECTION,  THE
COMMISSION SHALL ADOPT CLEAN ENERGY RULES AND REGULATIONS REQUIRING EACH
LOAD  SERVING  ENTITY  IN  THIS  STATE TO ENSURE THAT, ON OR BEFORE JULY
FIRST, TWO THOUSAND THIRTEEN NO LESS THAN ONE-HALF OF ONE PERCENT OF THE
ELECTRIC ENERGY SUCH ENTITY HAS SUPPLIED TO EACH CUSTOMER IN THE  PREVI-
OUS  TWELVE  MONTH PERIOD WAS GENERATED USING CLEAN ENERGY TECHNOLOGIES.
THE COMMISSION SHALL INCREASE THE REQUIRED PERCENTAGE  OF  CLEAN  ENERGY
REQUIRED  BY  ONE-HALF OF ONE PERCENT EACH YEAR ON JULY FIRST, UNTIL THE
AMOUNT OF CLEAN ENERGY SUPPLIED TO CUSTOMERS IN THIS STATE  REACHES  SIX
PERCENT,  AND  BY  ONE  PERCENT EACH YEAR THEREAFTER UNTIL THE AMOUNT OF
ENERGY SUPPLIED TO CUSTOMERS IN THIS STATE REACHES TEN PERCENT  OR  SUCH
LATER  DATE AS THE COMMISSION SHALL DETERMINE, PROVIDED HOWEVER THAT THE
COMMISSION SHALL NOT DECREASE THE REQUIRED PERCENTAGE  OF  CLEAN  ENERGY
REQUIRED AT ANY TIME.
  3.  THE COMMISSION SHALL REVIEW ELECTRICITY PRODUCTS SOLD BY EACH LOAD
SERVING ENTITY IN THE STATE ON A  PERIODIC  BASIS  TO  ENSURE  THAT  THE
REQUIREMENTS  SET  FORTH  IN  THIS SECTION ARE MET. THE COMMISSION SHALL
REVIEW ITS REGULATIONS AND  REQUIREMENTS  FOR  ENVIRONMENTAL  DISCLOSURE
LABELS TO ENSURE THAT INFORMATION PROVIDED TO CUSTOMERS CONCERNING CLEAN
ENERGY  IS  NOT  CONFUSING  AND TO CONSIDER WHETHER IT IS APPROPRIATE TO
REQUIRE ALL DISCLOSURE LABELS TO  INDICATE  THE  MINIMUM  PERCENTAGE  OF
CLEAN ENERGY REQUIRED PURSUANT TO THIS SECTION.
  4.  A LOAD SERVING ENTITY MAY SATISFY THE REQUIREMENTS OF THIS SECTION
BY ENTERING INTO CONVERSION TRANSACTIONS  ESTABLISHED  PURSUANT  TO  THE
COMMISSION'S  ENVIRONMENTAL  DISCLOSURE  PROGRAM  OR  SUCH OTHER TRADING
PROGRAM THAT THE COMMISSION MAY ESTABLISH. THE COMMISSION  SHALL  ESTAB-
LISH  A  COMPLIANCE PROTOCOL THAT PERMITS LOAD SERVING ENTITIES TO ENTER
INTO CONVERSION  TRANSACTIONS  OR  PURCHASE  CREDITS  FOR  CLEAN  ENERGY
SUPPLIED BY LOAD SERVING ENTITIES ON OR BEFORE THE JULY FIRST, TWO THOU-
SAND  THIRTEEN  COMPLIANCE  DATE.    SUCH PROGRAM SHALL ALLOW BANKING OF
CREDITS FOR CLEAN ENERGY SUPPLIED IN EXCESS OF REQUIREMENTS FOR A PERIOD
OF TWO YEARS, AND MAY ALLOW COMPLIANCE TO BE DEMONSTRATED  WITHIN  THREE
MONTHS  OF THE END OF THE CALENDAR YEAR IN ORDER TO ALLOW FOR COMPLIANCE
VIA THE TRADING PROGRAM.
  5. THE COMMISSION SHALL REQUIRE ANY LOAD SERVING ENTITY THAT FAILS  TO
MEET  ITS OBLIGATIONS UNDER THIS SECTION TO PAY A FINE TO THE COMMISSION
IN AN AMOUNT EQUAL TO THE  PRODUCT  OF  TWO  CENTS  AND  THE  DIFFERENCE
BETWEEN  KILOWATT-HOURS OF CLEAN ENERGY IT IS REQUIRED TO SUPPLY TO EACH
CUSTOMER IN THE PREVIOUS TWELVE MONTH PERIOD AND  THE  AMOUNT  OF  CLEAN
ENERGY ACTUALLY SUPPLIED OR SECURED VIA PURCHASE OF CREDITS IN THE TRAD-
ING  PROGRAM DESCRIBED IN SUBDIVISION FOUR OF THIS SECTION. THE CONTRIB-
UTION SHALL BE REDUCED TO ONE AND ONE-HALF CENT  FOUR  YEARS  AFTER  THE
START  OF  THE  CLEAN ENERGY REQUIREMENT AND FURTHER REDUCED TO ONE CENT
AND ONE-HALF CENT EIGHT AND TWELVE YEARS AFTER THE START  OF  THE  CLEAN
ENERGY REQUIREMENT RESPECTIVELY.
  S 2. Section 1005 of the public authorities law is amended by adding a
new subdivision 17 to read as follows:

A. 3847                             3

  17.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, TO
COMPLY WITH THE PROVISIONS OF SECTION SIXTY-SIX-M OF THE PUBLIC  SERVICE
LAW.
  S 3. Section 1020-s of the public authorities law, as added by chapter
517  of  the  laws  of 1986, is amended by adding a new subdivision 3 to
read as follows:
  3. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE PROVISIONS
OF SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW SHALL BE APPLICABLE  TO
THE AUTHORITY.
  S 4. This act shall take effect immediately.