assembly Bill A5713

Amended

New York solar industry development and jobs act of 2011

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Sponsor

ENGLEBRIGHT

Co-Sponsors

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Multi-Sponsors

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 25 / Feb / 2011
    • REFERRED TO WAYS AND MEANS
  • 02 / Mar / 2011
    • REFERENCE CHANGED TO ENERGY
  • 13 / Apr / 2011
    • REPORTED REFERRED TO WAYS AND MEANS
  • 13 / May / 2011
    • AMEND AND RECOMMIT TO WAYS AND MEANS
  • 13 / May / 2011
    • PRINT NUMBER 5713A
  • 01 / Jun / 2011
    • AMEND AND RECOMMIT TO WAYS AND MEANS
  • 01 / Jun / 2011
    • PRINT NUMBER 5713B
  • 16 / Jun / 2011
    • AMEND (T) AND RECOMMIT TO WAYS AND MEANS
  • 16 / Jun / 2011
    • PRINT NUMBER 5713C
  • 04 / Jan / 2012
    • REFERRED TO ENERGY
  • 02 / Feb / 2012
    • ENACTING CLAUSE STRICKEN

Summary

Creates the New York solar industry development and jobs act; relates to procurement of solar renewable energy credits; establishes schedule with annual percentages to be met for compliance years.

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Bill Details

See Senate Version of this Bill:
S4178
Versions:
A5713
A5713A
A5713B
A5713C
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §66-m, Pub Serv L; amd §§1005 & 1854, ren §§1020-hh - 1020-jj to be §§1020-ii - 1020-kk, add §1020-hh, Pub Auth L
Versions Introduced in 2009-2010 Legislative Cycle:
A11004A, S7093B
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5713

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 25, 2011
                               ___________

Introduced by M. of A. ENGLEBRIGHT, CAHILL, SCHIMEL, BRENNAN, ROSENTHAL,
  CRESPO  --  Multi-Sponsored  by  --  M. of A. BOYLE, HEASTIE, McENENY,
  MILLMAN, RAIA, REILLY -- read once and referred to  the  Committee  on
  Ways and Means

AN  ACT  to amend the public service law and the public authorities law,
  in relation to the creation of the New York solar industry development
  and jobs act of 2011 and the procurement  of  solar  renewable  energy
  credits;  and providing for the repeal of such provisions upon expira-
  tion thereof

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

  Section  1.  Legislative  intent  and purpose. It is the intent of the
legislature to enable the rapid and sustainable development of a  robust
solar  power  industry  in  New York by creating a scalable, diverse and
competitive solar energy market.  By tapping into the  state's  abundant
solar  energy  resources, it is the further intent of the legislature to
harness the multiple benefits associated with  the  generation  of  such
clean  power,  including the significant creation of much needed jobs, a
reduction of the long-term  costs  of  electricity  generation  for  New
York's  energy  consumers, including transmission and distribution costs
that continue to accelerate in proportion to overall electricity  supply
costs  for  the  residents  of  this state, increased reliability of the
state's electric grid, and a decrease in the  emission  of  harmful  air
pollution, including localized emissions from "peaker" plants and green-
house  gas  emissions.  By  establishing  such  a program, New York will
create a solar energy enterprise that will elevate the state to be among
the world's cutting edge clean energy industry leaders, while helping to
secure increased economic development for New Yorkers.
  S 2. Short title.  This act shall be known and may  be  cited  as  the
"New York solar industry development and jobs act of 2011".

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08692-02-1

A. 5713                             2

  S 3. The public service law is amended by adding a new section 66-m to
read as follows:
  S  66-M.  PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1. AS USED IN
THIS SECTION:
  (A) "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A  PHOTOVOLTAIC
DEVICE  THAT  DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF A BUILDING
INCLUDING INTEGRATED ROOF COVER, FACADE  OR  BUILDING  CLADDING,  GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES, AND SKYLIGHTS;
  (B)  "ELECTRIC  DISTRIBUTION  COMPANY" MEANS AN INVESTOR-OWNED UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE;
  (C) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (D)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL
BOUNDARIES  OF  THE  STATE  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
THAT IS NOT SUBJECT TO A POWER PURCHASE AGREEMENT;
  (E) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (F) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (G)  "RETAIL  ELECTRIC  SUPPLIER"  MEANS  AN ENTITY AUTHORIZED TO SELL
ELECTRICITY AT RETAIL TO END-USE CUSTOMERS IN THIS STATE,  INCLUDING  AN
ELECTRIC  DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR AN
ENERGY SERVICE COMPANY LICENSED BY THE COMMISSION FOR SUCH PURPOSE;
  (H) "SMALL RETAIL DISTRIBUTED SOLAR ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (I) "SOLAR ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT  OF  A
CERTAIN  DOLLAR  AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE COMMIS-
SION, THAT A RETAIL ELECTRIC SUPPLIER MAY SUBMIT TO  THE  COMMISSION  IN
ORDER  TO  COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION
TWO OF THIS SECTION;
  (J) "SOLAR PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR  A  MINIMUM  OF
FIFTEEN  YEARS,  FOR THE PURCHASE OF SRECS FROM A QUALIFIED SOLAR ENERGY
GENERATOR; AND
  (K) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION.
  2. (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE, AT  MINI-
MUM,  SRECS  TO  MEET THE FOLLOWING PERCENTAGES OF SUCH SUPPLIER'S TOTAL
ELECTRIC SALES IN EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.05%
  2014                0.10%
  2015                0.15%
  2016                0.20%
  2017                0.30%
  2018                0.40%
  2019                0.50%
  2020                0.75%
  2021                1.00%

A. 5713                             3

  2022                1.25%
  2023                1.50%
  2024                2.00%
  2025                2.50%
  (B)  AT  LEAST  TWENTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO
EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY
SHALL  BE  MET  THROUGH  THE  PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST  AN  ADDITIONAL
THIRTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY  SHALL  BE  MET
THROUGH  THE  PROCUREMENT  OF  SRECS  ASSOCIATED WITH RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR  OBLIGATIONS  ESTABLISHED
BY  THE  COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT
OF SRECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED  QUALIFIED  SOLAR
ENERGY GENERATION.
  (E)  THE  COMMISSION,  IN  COORDINATION WITH THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY  AND  THE  WHOLESALE  GRID  OPERATOR,
SHALL ESTABLISH AN AUTOMATED SREC TRACKING SYSTEM WITHIN THREE MONTHS OF
THE EFFECTIVE DATE OF THIS SECTION.
  (F)  SRECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS ESTAB-
LISHED IN THIS SUBDIVISION IN THE COMPLIANCE  YEAR  IN  WHICH  THEY  ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  3.  (A)  IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION,  THEY  SHALL
BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING A SOLAR ALTERNATIVE
COMPLIANCE PAYMENT IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED,
HOWEVER,  THAT  THE  COMMISSION  SHALL  SET SUCH PAYMENT AT A LEVEL THAT
SHALL STIMULATE THE DEVELOPMENT OF NEW QUALIFIED SOLAR ENERGY GENERATION
EQUIPMENT NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED  IN  SUBDIVI-
SION TWO OF THIS SECTION.
  (B)  NO  LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMISSION
SHALL ESTABLISH A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE  THROUGH
THE YEAR TWO THOUSAND TWENTY-FIVE, AND SHALL ANNUALLY REVIEW SUCH SCHED-
ULE  TO  ENSURE  THAT  THE  PAYMENTS ARE SET AT A LEVEL TO STIMULATE THE
DEVELOPMENT OF NEW  QUALIFIED  SOLAR  ENERGY  GENERATION  EQUIPMENT,  IN
ACCORDANCE  WITH  THE PREVIOUS SUBDIVISION. ONCE SUCH SCHEDULE IS ESTAB-
LISHED, THE COMMISSION MAY ADOPT, AFTER APPROPRIATE NOTICE AND  OPPORTU-
NITY FOR PUBLIC COMMENT, AN INCREASE IN ALTERNATIVE COMPLIANCE PAYMENTS,
PROVIDED  THAT  THE  COMMISSION  SHALL NOT REDUCE PREVIOUSLY ESTABLISHED
LEVELS OF PAYMENTS, NOR SHALL THE COMMISSION  PROVIDE  RELIEF  FROM  THE
OBLIGATION  OF  PAYMENT  OF THE SOLAR ALTERNATIVE COMPLIANCE PAYMENTS BY
THE RETAIL ELECTRIC SUPPLIERS IN ANY FORM.
  (C) THE COMMISSION  SHALL  MAKE  AVAILABLE  ALL  MONIES  FROM  AMOUNTS
COLLECTED  THROUGH SUCH ALTERNATIVE COMPLIANCE PAYMENTS FOR SOLAR INITI-
ATIVES TO BE DEVELOPED BY THE NEW YORK STATE ENERGY RESEARCH AND  DEVEL-
OPMENT AUTHORITY.
  4.  (A)  NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMIS-
SION SHALL ESTABLISH A TEMPLATE FOR SOLAR PURCHASE AGREEMENTS TO BE USED
BY RETAIL ELECTRIC SUPPLIERS THAT ARE  ELECTRIC  DISTRIBUTION  COMPANIES
FOR THEIR PROCUREMENT OF SRECS FOR THE PURPOSE OF FULFILLING THEIR OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.

A. 5713                             4

  (B)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL, NOT LATER THAN JULY FIRST, TWO  THOUSAND  TWELVE,  SUBMIT
FOR  COMMISSION REVIEW AND APPROVAL A SOLAR SOLICITATION PLAN THAT SHALL
INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS  FOR  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING  ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. THE
ELECTRIC  DISTRIBUTION  COMPANY'S  SOLAR  SOLICITATION  PLAN  SHALL   BE
DESIGNED  TO FOSTER A DIVERSITY OF SOLAR PROJECT SIZES AND PARTICIPATION
AMONG  ALL  ELIGIBLE  CUSTOMER  CLASSES  SUBJECT  TO  COST-EFFECTIVENESS
CONSIDERATIONS.   A SEPARATE SOLICITATION PROCESS SHALL BE CONDUCTED FOR
THE PROCUREMENTS OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENER-
GY GENERATION PRODUCED BY EQUIPMENT THAT IS BETWEEN  FIFTY-ONE  AND  TWO
HUNDRED FIFTY KILOWATTS IN SIZE.
  (C)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL EXECUTE ITS APPROVED  SOLICITATION  PLAN  AND  SUBMIT  FOR
COMMISSION  REVIEW  AND  APPROVAL  ITS  PREFERRED SOLAR PROCUREMENT PLAN
COMPRISED OF PROPOSED SOLAR PURCHASE  AGREEMENTS  FOR  SRECS  ASSOCIATED
WITH  QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION. THE  COMMISSION  MAY  APPROVE,  REJECT  OR
MODIFY  AN  APPLICATION  FOR  APPROVAL  OF  SUCH PLAN, PROVIDED THAT THE
COMMISSION SHALL APPROVE SUCH PLAN IF THE COMMISSION FINDS THAT: (I) THE
SOLICITATION AND  EVALUATION  CONDUCTED  BY  THE  ELECTRIC  DISTRIBUTION
COMPANY  WAS  THE  RESULT  OF  A FAIR, OPEN, COMPETITIVE AND TRANSPARENT
PROCESS; (II) APPROVAL OF THE SOLAR PROCUREMENT PLAN WOULD RESULT IN THE
ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO  THE
PROCUREMENT  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION
OTHER THAN SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  AT  THE
LOWEST  REASONABLE COST; AND (III) SUCH PROCUREMENT PLAN SATISFIES OTHER
CRITERIA AS MAY BE ESTABLISHED IN THE APPROVED SOLICITATION PLAN. IF THE
COMMISSION DOES NOT APPROVE, REJECT OR MODIFY THE DISTRIBUTION COMPANY'S
APPLICATION WITHIN SIXTY DAYS, THE  PROCUREMENT  PLAN  SHALL  BE  DEEMED
APPROVED.
  (D)  NO  LATER THAN JULY FIRST, TWO THOUSAND TWELVE, EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY SHALL  SUBMIT  TO
THE COMMISSION FOR REVIEW AND APPROVAL A PLAN FOR THE ACHIEVEMENT OF ITS
OBLIGATION  PERTAINING TO THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  ESTABLISHED  IN  SUBDIVISION
TWO OF THIS SECTION.
  5.  EACH  RETAIL  ELECTRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE ENTITLED TO RECOVER THE  PRUDENTLY  INCURRED  COSTS  OF
COMPLYING  WITH  ITS  OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS
SECTION, AS DETERMINED BY THE COMMISSION. ALL SUCH COSTS SHALL BE RECOV-
ERED THROUGH THE SUPPLY PORTION OF EACH ELECTRIC CUSTOMER'S  BILL  IN  A
COMPETITIVELY NEUTRAL MANNER.
  6. NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE COMMISSION SHALL
ESTABLISH  AN  INCENTIVE  PROGRAM FOR RETAIL ELECTRIC SUPPLIERS THAT ARE
ELECTRIC DISTRIBUTION COMPANIES BASED ON SUCH COMPANIES' ACHIEVEMENT  OF
THEIR  OBLIGATIONS,  AND  EXEMPLARY PERFORMANCE BEYOND SUCH OBLIGATIONS,
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION (I) IN  A  COST-EFFECTIVE
MANNER  THAT ACHIEVES THE OBLIGATIONS AT LEAST COST AND AVOIDS LONG-TERM
COSTS  TO  THE  TRANSMISSION  AND  DISTRIBUTION  SYSTEM;  (II)  PROVIDES
ENHANCED  ELECTRICITY RELIABILITY WITHIN COMPANIES' SERVICE TERRITORIES;
AND (III) MINIMIZES PEAK LOAD IN CONSTRAINED AREAS.
  7. NO LATER THAN JANUARY FIRST, TWO THOUSAND  TWELVE,  THE  COMMISSION
SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK STATE ENERGY RESEARCH AND

A. 5713                             5

DEVELOPMENT AUTHORITY, ESTABLISH THE TERMS AND CONDITIONS THAT SHALL  BE
APPLICABLE  TO SOLAR PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC
SUPPLIERS THAT ARE ELECTRIC DISTRIBUTION COMPANIES FOR  THE  PROCUREMENT
OF  SRECS  ASSOCIATED  WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' OBLIGATIONS PERTAIN-
ING TO SRECS ASSOCIATED WITH SUCH GENERATION ESTABLISHED IN  SUBDIVISION
TWO  OF THIS SECTION.  SUCH TERMS AND CONDITIONS SHALL INCLUDE A TARIFF,
AS ESTABLISHED BY THE COMMISSION IN CONJUNCTION WITH THE NEW YORK  STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, TO  BE
PAID  BY  ELECTRIC  DISTRIBUTION COMPANIES TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS. THE COMMISSION, IN  CONJUNCTION  WITH  THE  NEW  YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SHALL ESTABLISH A SEPA-
RATE  TARIFF  FOR  THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION THAT IS PRODUCED BY  BUILDING  INTE-
GRATED  PHOTOVOLTAIC EQUIPMENT, WHICH SHALL BE EQUIVALENT TO ONE HUNDRED
TWENTY-FIVE PERCENT OF THE TARIFF APPLICABLE TO  SRECS  ASSOCIATED  WITH
OTHER  SOURCES  OF SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION. THE
COMMISSION, IN CONJUNCTION WITH THE NEW YORK STATE ENERGY  RESEARCH  AND
DEVELOPMENT  AUTHORITY,  SHALL  REVIEW  SUCH TARIFFS EVERY TWO YEARS AND
ADJUST AS NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO SRECS ASSO-
CIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED
IN SUBDIVISION TWO OF THIS SECTION.
  8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY  ENTERED  INTO  BEFORE
JANUARY  FIRST,  TWO THOUSAND THIRTEEN BY RETAIL ELECTRIC SUPPLIERS THAT
ARE NOT ELECTRIC DISTRIBUTION COMPANIES SHALL BE EXEMPT FROM  THE  OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  9.  EACH  RETAIL  ELECTRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO CONSTRUCT, OWN AND OPERATE QUALIFIED SOLAR
ENERGY GENERATION EQUIPMENT FOR THE PURPOSE OF COMPLYING WITH THE COMPA-
NY'S  OBLIGATIONS  ESTABLISHED  IN  SUBDIVISION  TWO  OF  THIS  SECTION;
PROVIDED,  HOWEVER,  THAT  THE SRECS ASSOCIATED WITH THE QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY SUCH EQUIPMENT SHALL NOT,  IN  THE  AGGRE-
GATE,  COMPRISE GREATER THAN TWENTY-FIVE PERCENT OF SUCH COMPANY'S OBLI-
GATIONS, AS ESTABLISHED IN SUBDIVISION  TWO  OF  THIS  SECTION,  IN  ANY
CALENDAR  YEAR.  NO  ELECTRIC DISTRIBUTION COMPANY MAY RECOVER PRUDENTLY
INCURRED COSTS ASSOCIATED WITH THE CONSTRUCTION OF QUALIFIED SOLAR ENER-
GY GENERATION EQUIPMENT WITHOUT OBTAINING PRIOR APPROVAL FOR  THE  COSTS
FROM THE COMMISSION.
  10.  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO RESELL OR OTHERWISE DISPOSE OF  SRECS  AND
ANY ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION PROCURED BY SUCH COMPA-
NY  THAT  IS IN EXCESS OF ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO
OF THIS SECTION, PROVIDED THE COMPANY SHALL NET  THE  COST  OF  PAYMENTS
MADE  FOR  SRECS  AND  ANY  ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION
UNDER SOLAR PURCHASE AGREEMENTS AGAINST THE  PROCEEDS  OF  THE  SALE  OF
SRECS  AND  ANY  ASSOCIATED  QUALIFIED  SOLAR ENERGY GENERATION, AND THE
DIFFERENCE SHALL BE CREDITED OR CHARGED  TO  THE  ELECTRIC  DISTRIBUTION
COMPANY'S  CUSTOMERS  THROUGH A RECONCILING COMPONENT OF ELECTRIC RATES,
AS DETERMINED BY THE COMMISSION.
  11. (A) WITHIN THIRTY DAYS OF THE SUBMISSION OF THE ANNUAL  COMPLIANCE
REPORTS  FILED  BY  RETAIL  ELECTRIC  SUPPLIERS  PURSUANT TO SUBDIVISION
TWELVE OF THIS SECTION, THE  COMMISSION  SHALL  DETERMINE  THE  COMBINED
TOTAL  ANNUAL  EXPENDITURES  FOR THE PROCUREMENT OF SRECS MADE BY RETAIL
ELECTRIC SUPPLIERS FOR THE PURPOSES OF MEETING  THE  ANNUAL  REQUIREMENT
SET  FORTH  IN  PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE

A. 5713                             6

APPLICABLE COMPLIANCE YEAR AS A PERCENTAGE OF THE TOTAL RETAIL ELECTRIC-
ITY SALES REVENUES FOR RETAIL ELECTRIC  SUPPLIERS  FOR  SUCH  COMPLIANCE
YEAR.  IF  SUCH  PERCENTAGE  EXCEEDS  ONE AND ONE-HALF PERCENT, THEN THE
ANNUAL  REQUIREMENT  FOR  THE  COMPLIANCE  YEAR FOR WHICH THE COMMISSION
MAKES ITS DETERMINATION SHALL CONTINUE  TO  BE  THE  ANNUAL  REQUIREMENT
APPLICABLE IN EACH SUBSEQUENT COMPLIANCE YEAR UNTIL THIS LIMITATION ENDS
AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION BY THE  COMMISSION,
BASED  UPON A REVIEW OF THE RETAIL ELECTRIC SUPPLIERS' ANNUAL COMPLIANCE
REPORTS, THAT THE COMBINED TOTAL ANNUAL EXPENDITURES FOR THE PROCUREMENT
OF SRECS MADE BY RETAIL ELECTRIC SUPPLIERS TO MEET THE APPLICABLE ANNUAL
REQUIREMENT FOR A COMPLIANCE  YEAR  DID  NOT  EXCEED  ONE  AND  ONE-HALF
PERCENT  OF THE TOTAL RETAIL ELECTRICITY SALES REVENUES FOR RETAIL ELEC-
TRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. FOR THE COMPLIANCE  YEAR  IMME-
DIATELY  FOLLOWING THE END OF THE LIMITATION PURSUANT TO THIS PARAGRAPH,
THE APPLICABLE ANNUAL REQUIREMENT SHALL BE THE REQUIREMENT SET FORTH  IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY  FOLLOWING  THE  COMPLIANCE YEAR FOR WHICH THE LIMITATION IN
PARAGRAPH (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL  REQUIREMENT
SHALL  CONTINUE  TO INCREASE IN THE INCREMENTS PROVIDED FOR IN PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION FOR EACH  SUBSEQUENT  YEAR  UNTIL
THE  ANNUAL  REQUIREMENT  REACHES THE PERCENTAGE SET FORTH IN SUCH PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  (C) SOLAR ALTERNATIVE COMPLIANCE  PAYMENTS  MADE  BY  RETAIL  ELECTRIC
SUPPLIERS  PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL NOT COUNT
TOWARDS THE ANNUAL EXPENDITURE LIMITATIONS SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  12. (A) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO  LATER
THAN  JULY  FIRST  OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND
TWENTY-SIX THE COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAKER  OF  THE
ASSEMBLY,  TEMPORARY  PRESIDENT  OF THE SENATE, AND CHAIRS OF THE SENATE
AND ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A  REPORT
REGARDING  THE  PROGRESS OF EACH RETAIL ELECTRIC SUPPLIER IN MEETING ITS
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B) EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION  THE
INFORMATION  NECESSARY  TO FULFILL THE COMMISSION'S OBLIGATIONS PURSUANT
TO THIS SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL  REPORTING  OBLIGATION
AND PROCESS TO BE ESTABLISHED BY THE COMMISSION.
  (C)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC  SUPPLIER
FOR  THE  PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL CALENDAR YEARS
TO DATE: (I) THE ACTUAL NUMBER  OF  MEGAWATT-HOURS  OF  QUALIFIED  SOLAR
ENERGY  GENERATION  SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS AND THE
TOTAL NUMBER OF MEGAWATT-HOURS  SOLD  AT  RETAIL  TO  NEW  YORK  END-USE
CUSTOMERS;  (II)  THE  NUMBER  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR
ENERGY GENERATION THAT WERE RETIRED FOR  THE  PURPOSES  OF  MEETING  THE
SUPPLIER'S  OBLIGATIONS  ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION;
(III) THE AMOUNT, IF ANY, OF SOLAR ALTERNATIVE COMPLIANCE PAYMENTS MADE;
AND (IV) ITS ANNUAL RETAIL ELECTRICITY SALES  REVENUE  AND  EXPENDITURES
FOR THE PROCUREMENT OF SRECS MADE FOR THE PURPOSES OF MEETING THE APPLI-
CABLE  ANNUAL  REQUIREMENT,  PROVIDED THAT SUCH INFORMATION NEED ONLY BE
REPORTED FOR THE  PREVIOUS  CALENDAR  YEAR.    SUCH  REPORT  SHALL  ALSO
INCLUDE,  FOR EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIB-
UTION COMPANY: (1) THE NUMBER OF SRECS EACH ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIBUTED  SOLAR  ENERGY

A. 5713                             7

GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN FIFTY-ONE AND TWO
HUNDRED FIFTY KILOWATTS IN SIZE  AND  RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (2) THE
NUMBER  OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE AGREEMENTS AND THE
ELECTRIC DISTRIBUTION COMPANY'S  OWNERSHIP  OF  QUALIFIED  SOLAR  ENERGY
GENERATION EQUIPMENT, RESPECTIVELY; AND (3) THE AMOUNT PAID TO QUALIFIED
SOLAR ENERGY GENERATORS THROUGH TARIFFS ESTABLISHED PURSUANT TO SUBDIVI-
SION  SEVEN  OF  THIS  SECTION  FOR  SRECS  ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION.
  S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 17 to read as follows:
  17. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (2)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL
BOUNDARIES  OF  THE  STATE  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
THAT IS NOT SUBJECT TO A POWER PURCHASE AGREEMENT;
  (3) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (4) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (5)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (6)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (7)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  B. (1) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.25%
  2014                0.55%
  2015                0.70%
  2016                0.90%
  2017                1.10%
  2018                1.30%
  2019                1.50%
  2020                1.75%
  2021                2.00%
  2022                2.50%
  2023                3.00%
  2024                3.50%
  2025                4.50%
  (2) AT LEAST TWENTY PERCENT OF THE ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED

A. 5713                             8

WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT  LEAST  AN
ADDITIONAL  THIRTY  PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN THIS
PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED  WITH
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY
SIZE.
  (3) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (4) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN  THIS  PARA-
GRAPH  THROUGH  THE  PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  C. (1) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER  CLASSES  SUBJECT  TO COST-EFFECTIVENESS CONSIDERATIONS.   A SEPARATE
SOLICITATION PROCESS SHALL BE CONDUCTED FOR  THE  PROCUREMENT  OF  SRECS
ASSOCIATED  WITH  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY  KILOWATTS  IN
SIZE.
  (2) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (3) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN PARAGRAPH B  OF  THIS
SUBDIVISION.
  D.  (1)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, MAJORITY LEADER OF THE SENATE, AND CHAIRS OF  THE  SENATE  AND
ASSEMBLY  ENERGY  COMMITTEES,  AND  SHALL  POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED  IN  PARA-
GRAPH B OF THIS SUBDIVISION.
  (2)  EACH  REPORT  THAT  SHALL BE SUBMITTED PURSUANT TO THIS PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH

A. 5713                             9

B OF THIS SUBDIVISION; (II) THE NUMBER OF  SUCH  SRECS  EACH  ASSOCIATED
WITH  SMALL  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT OF ANY SIZE THAT WERE
PROCURED; AND (III) THE NUMBER OF  SUCH  SRECS  PROCURED  THROUGH  SOLAR
PURCHASE  AGREEMENTS  AND  THE  AUTHORITY'S OWNERSHIP OF QUALIFIED SOLAR
ENERGY GENERATION EQUIPMENT, RESPECTIVELY.
  S 5. Sections 1020-hh, 1020-ii and 1020-jj of the  public  authorities
law,  as  renumbered  by chapter 433 of the laws of 2009, are renumbered
sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
to read as follows:
  S 1020-HH. PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1.  AS  USED
IN THIS SECTION:
  (A)  "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A PHOTOVOLTAIC
DEVICE THAT DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF  A  BUILDING
INCLUDING  INTEGRATED  ROOF  COVER,  FACADE OR BUILDING CLADDING, GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES AND SKYLIGHTS;
  (B) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (C)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL
BOUNDARIES  OF  THE  STATE  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
THAT IS NOT SUBJECT TO A POWER PURCHASE AGREEMENT;
  (D) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (E) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (F)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (G)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (H)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.25%
  2014                0.55%
  2015                0.70%
  2016                0.90%
  2017                1.10%
  2018                1.30%
  2019                1.50%
  2020                1.75%
  2021                2.00%
  2022                2.50%

A. 5713                            10

  2023                3.00%
  2024                3.50%
  2025                4.50%
  (B)  AT  LEAST  TWENTY PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST
AN  ADDITIONAL  THIRTY  PERCENT  OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED  WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIP-
MENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS  SUBDI-
VISION  THROUGH  THE PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  3. (A) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER  CLASSES  SUBJECT  TO COST-EFFECTIVENESS CONSIDERATIONS.   A SEPARATE
SOLICITATION PROCESS SHALL BE CONDUCTED FOR  THE  PROCUREMENT  OF  SRECS
ASSOCIATED  WITH  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY  KILOWATTS  IN
SIZE.
  (B) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (C) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN  SUBDIVISION  TWO  OF
THIS SECTION.
  4.  NO  LATER  THAN  JANUARY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY
SHALL ESTABLISH A TARIFF THAT IT SHALL PAY TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS WITH WHICH THE AUTHORITY ENTERS  INTO  SOLAR  PURCHASE
AGREEMENTS  FOR  THE  PROCUREMENT  OF SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION FOR THE  PURPOSE  OF  ACHIEVING  THE
AUTHORITY'S  OBLIGATIONS PERTAINING TO SRECS ASSOCIATED WITH SUCH GENER-
ATION ESTABLISHED IN SUBDIVISION TWO  OF  THIS  SECTION.  THE  AUTHORITY

A. 5713                            11

SHALL  ESTABLISH  A SEPARATE TARIFF FOR THE PROCUREMENT OF SRECS ASSOCI-
ATED WITH SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  THAT  IS
PRODUCED  BY  BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT, WHICH SHALL BE
EQUIVALENT  TO  ONE HUNDRED TWENTY-FIVE PERCENT OF THE TARIFF APPLICABLE
TO SRECS ASSOCIATED WITH OTHER SOURCES OF SMALL RETAIL DISTRIBUTED SOLAR
ENERGY GENERATION. THE AUTHORITY SHALL REVIEW  SUCH  TARIFFS  EVERY  TWO
YEARS  AND  ADJUST AS NECESSARY TO ACHIEVE ITS OBLIGATIONS PERTAINING TO
SRECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR  ENERGY  GENERATION
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  5.  (A)  IF  THE AUTHORITY DETERMINES THAT ITS ANNUAL EXPENDITURES FOR
THE PROCUREMENT OF SRECS, MADE FOR THE PURPOSES OF  MEETING  THE  ANNUAL
REQUIREMENT  SET  FORTH  IN  PARAGRAPH  (A)  OF  SUBDIVISION TWO OF THIS
SECTION FOR A COMPLIANCE YEAR, EXCEEDS ONE AND ONE-HALF PERCENT  OF  ITS
ANNUAL  RETAIL  ELECTRICITY  REVENUES FOR SUCH COMPLIANCE YEAR, THEN THE
ANNUAL REQUIREMENT FOR THE COMPLIANCE YEAR FOR WHICH THE AUTHORITY MAKES
ITS DETERMINATION SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE
IN EACH  SUBSEQUENT  COMPLIANCE  YEAR  UNTIL  THIS  LIMITATION  ENDS  AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION  BY  THE  AUTHORITY
THAT  ITS  ANNUAL  EXPENDITURE FOR THE PROCUREMENT OF SRECS MADE FOR THE
PURPOSES OF MEETING ITS ANNUAL REQUIREMENT FOR A COMPLIANCE YEAR DID NOT
EXCEED ONE AND ONE-HALF PERCENT OF ITS ANNUAL RETAIL ELECTRICITY  REVEN-
UES  FOR  SUCH  COMPLIANCE  YEAR.  FOR  THE  COMPLIANCE YEAR IMMEDIATELY
FOLLOWING THE END OF THE LIMITATION  PURSUANT  TO  THIS  PARAGRAPH,  THE
APPLICABLE  ANNUAL  REQUIREMENT  SHALL  BE  THE REQUIREMENT SET FORTH IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH  THE  LIMITATION  IN
PARAGRAPH  (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL REQUIREMENT
SHALL CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR  IN  PARAGRAPH
(A)  OF  SUBDIVISION  TWO OF THIS SECTION FOR EACH SUBSEQUENT YEAR UNTIL
THE ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH  IN  SUCH  PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  6.  (A)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE
AND  ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN  SUBDI-
VISION TWO OF THIS SECTION.
  (B)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN  SUBDIVI-
SION  TWO OF THIS SECTION; (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIB-
UTED  SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT THAT IS BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT  OF  ANY  SIZE  THAT  WERE
PROCURED; (III) THE NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE
AGREEMENTS  AND  THE  AUTHORITY'S  OWNERSHIP  OF  QUALIFIED SOLAR ENERGY
GENERATION EQUIPMENT, RESPECTIVELY; (IV) THE AMOUNT  PAID  TO  QUALIFIED
SOLAR  ENERGY GENERATORS FOR SRECS ASSOCIATED WITH SMALL RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION THROUGH THE TARIFFS ESTABLISHED PURSUANT TO
SUBDIVISION FOUR OF THIS SECTION; AND (V) THE ANNUAL RETAIL  ELECTRICITY

A. 5713                            12

SALES REVENUE AND EXPENDITURES MADE FOR THE PROCUREMENT OF SRECS FOR THE
PURPOSE OF MEETING THE APPLICABLE ANNUAL REQUIREMENT, PROVIDED THAT SUCH
INFORMATION NEED ONLY BE REPORTED FOR THE PREVIOUS CALENDAR YEAR.
  S  6. If any provision of this act is, for any reason, declared uncon-
stitutional or invalid, in whole or in part, by any court  of  competent
jurisdiction, such portion shall be deemed severable, and such unconsti-
tutionality or invalidity shall not affect the validity of the remaining
provisions  of  this  act,  which remaining provisions shall continue in
full force and effect.
  S 7. This act shall take effect immediately; provided,  however,  that
this act shall expire and be deemed repealed on the date the chairman of
the  public  service  commission  notifies the legislative bill drafting
commission of the occurrence of the implementation  of  a  substantially
similar federal program.

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