senate Bill S4178A

New York solar industry development and jobs act of 2011

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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

  • 22 / Mar / 2011
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 18 / May / 2011
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 18 / May / 2011
    • PRINT NUMBER 4178A
  • 24 / May / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS

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

Versions:
S4178
S4178A
Legislative Cycle:
2011-2012
Current Committee:
Senate Energy And Telecommunications
Law Section:
Public Service Law
Laws Affected:
Add §66-m, Pub Serv L; amd §1005, ren §§1020-hh - 1020-jj to be §§1020-ii - 1020-kk, add §1020-hh, Pub Auth L
Versions Introduced in 2009-2010 Legislative Cycle:
S7093B

Votes

5
1
5
Aye
1
Nay
6
aye with reservations
0
absent
0
excused
0
abstained
show Energy and Telecommunications committee vote details

Sponsor Memo

BILL NUMBER:S4178A

TITLE OF BILL:
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 expiration thereof

PURPOSE:
The purpose of this legislation is to allow for the creation of a
solar renewable energy credit program to stimulate the installation
of solar projects in New York State, and most importantly, create
thousands of good paying jobs in the process.

SUMMARY OF PROVISIONS:
This bill adds a new Section 66-m to the Public service law. It also
adds a new subdivision 19 to section 1005 of the public authorities
law, and 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, 1020-kk and a new section
1020-hh.

o Creates a Solar Renewable Energy Credit system in New York, to create
jobs and incentivize investment.

o Defines appropriate terms and clarifies legislative intent.

o Requires compliance with prevailing wage protections for projects of
75 kilowatts or greater.

o Applies a "Buy American Standard" to ensure that an escalating
percentage of solar panels and other component parts, must be made in
the United States.

o Establishes a compliance schedule between 2012-2025 for investor owned
utilities, the Long Island power Authority and the New York power
Authority for the purchase of Solar Renewable energy credits.

o Provides for the establishment of a solar renewable energy credit
tracking system.

o Requires Investor owned utilities to purchase at
least 40 percent of their credits from their service territory.

o Establishes a 1% cost cap in terms of impact on retail electricity
sales revenue, and allows the program to pause at the current
compliance level, if the cap is reached, until a proceeding of the
Public Service Commission determines that the situation should change.

o Provides for reporting requirements the legislature on the specific
goals achieved by the program.

JUSTIFICATION:
This legislation creates the Solar Renewable Energy Credit Program,
which is designed to stimulate the installation and generation of
solar energy in New York State. A Renewable Energy Credit model
provides investment stability through long term contracts and
competitive bidding in open auctions. Even more importantly, this
bill will incentivize the creation of jobs, and the growth of a new
industry in New York. The Success of the Solar program in New Jersey
has demonstrated that this process can work effectively, create jobs
and limit cost impact on ratepayers.

This bill will also serve through its "Buy American" and its "New York
Component Incentive" to stimulate solar manufacturing and production
in New York State and the United States, all while reducing our
dependency on foreign sources of fuel, and creating over 2,000
megawatts of green energy.

LEGISLATIVE HISTORY:
S.7093B or 2010, Referred to Senate Energy and Telecommunications
Committee

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that this
act shall expire and be deemed repealed on the date the Commissioner
of the public Service Commission notifies the Legislative Bill
Drafting Commission of the occurrence of the implementation of a
substantively similar federal program.

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

                                 4178--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 22, 2011
                               ___________

Introduced  by  Sens. MAZIARZ, ADDABBO, AVELLA, BALL, BONACIC, CARLUCCI,
  DILAN, DUANE, GIANARIS, GRISANTI,  HANNON,  KENNEDY,  KLEIN,  KRUEGER,
  LANZA,  LAVALLE,  MONTGOMERY,  NOZZOLIO, OPPENHEIMER, PARKER, PERKINS,
  ROBACH, SERRANO, STEWART-COUSINS -- read twice  and  ordered  printed,
  and  when printed to be committed to the Committee on Energy and Tele-
  communications  --  committee  discharged,   bill   amended,   ordered
  reprinted as amended and recommitted to said committee

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  energy  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  energy  and the development of a robust solar industry, including
the creation of much needed well-paying 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  acceler-
ate  in proportion to overall electricity supply costs for the residents
of this state, increased reliability of the state's  electric  grid,  an
increase in the security of the state's energy supplies, the creation of
economic  opportunities  for  solar  component  makers  and installation
contractors throughout the state, and a  decrease  in  the  emission  of
harmful  air  pollution,  including  localized  emissions  from "peaker"
plants and greenhouse gas emissions. By establishing such a program, New

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08692-06-1

S. 4178--A                          2

York will create a solar energy industry that will elevate the state  to
be  among the world's leaders in clean energy industry, while helping to
secure increased economic development and security 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".
  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 SOLAR ENERGY EQUIPMENT" MEANS A SOLAR ENERGY
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)  "SOLAR ENERGY DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM INCIDENTAL SUNLIGHT BY MEANS OF THE PHOTOVOLTAIC EFFECT
AND IS INTERCONNECTED TO THE ELECTRICAL DISTRIBUTION SYSTEM;
  (D) "QUALIFIED SOLAR ENERGY GENERATION" MEANS ELECTRIC POWER GENERATED
BY A SOLAR ENERGY DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDIC-
TIONAL  BOUNDARIES  OF THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE AND THAT IS INSTALLED IN ACCORDANCE WITH QUALIFIED CONDITIONS;
  (E) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS  THE  OWNER  OF  A  SOLAR
ENERGY  DEVICE  OR  DEVICES  THAT PRODUCES QUALIFIED SOLAR ENERGY GENER-
ATION;
  (F) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE  LOCATED  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) "RESIDENTIAL DISTRIBUTED SOLAR  ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A SOLAR ENERGY DEVICE
THAT IS EQUAL TO OR LESS THAN TEN KILOWATTS IN CAPACITY;
  (I) "SMALL RETAIL DISTRIBUTED SOLAR ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A SOLAR ENERGY DEVICE
THAT IS GREATER THAN TEN KILOWATTS AND EQUAL TO OR LESS THAN FIFTY KILO-
WATTS IN CAPACITY;
  (J) "COMMERCIAL DISTRIBUTED  SOLAR  ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A SOLAR ENERGY DEVICE
THAT IS   FIFTY KILOWATTS OR GREATER AND EQUAL  TO  OR  LESS  THAN  FIVE
HUNDRED KILOWATTS IN CAPACITY;
  (K)  "QUALIFIED  CONDITIONS" MEANS USING QUALIFIED INSTALLERS AND, FOR
ANY SOLAR ENERGY DEVICE EXCEEDING SEVENTY-FIVE  KILOWATTS  IN  CAPACITY,
PAYMENT  TO  SUCH  QUALIFIED INSTALLERS OF WAGES AND SUPPLEMENTS FOR THE
INSTALLATION OF SUCH SOLAR ENERGY DEVICE IN ACCORDANCE WITH THE PREVAIL-
ING WAGES AND SUPPLEMENTS THAT WOULD BE APPLICABLE  TO  A  CONTRACT  FOR
PUBLIC WORK, PURSUANT TO SECTION TWO HUNDRED TWENTY OF THE LABOR LAW, IN
THE LOCATION IN WHICH SUCH SOLAR ENERGY DEVICE IS LOCATED AT THE TIME OF
SUCH INSTALLATION.
  (1)  (I)  "QUALIFIED  INSTALLER"  MEANS:  A  PERSON  WHO: (A) (1) WITH
RESPECT TO THE INSTALLATION OF A SOLAR ELECTRIC DEVICE, HOLDS A  LICENSE
AS  A  MASTER ELECTRICIAN, OR IS DESIGNATED AN APPROVED INSTALLER BY THE
NEW YORK  STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY,  OR  HAS
COMPLETED  A REGISTERED APPRENTICESHIP TRAINING PROGRAM FOR ELECTRICIANS

S. 4178--A                          3

PURSUANT TO SECTION EIGHT HUNDRED ELEVEN OF THE LABOR LAW, OR  (2)  WITH
RESPECT  TO  THE INSTALLATION OF A SOLAR THERMAL DEVICE, HOLDS A LICENSE
AS A MASTER PLUMBER, OR IS DESIGNATED AN APPROVED INSTALLER BY  THE  NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, OR HAS COMPLETED A
REGISTERED  APPRENTICESHIP  TRAINING  PROGRAM  FOR  PLUMBERS PURSUANT TO
SECTION EIGHT HUNDRED ELEVEN OF THE LABOR LAW; AND
  (B) HAS BEEN CERTIFIED PRIOR TO PERFORMING ANY WORK ON THE PROJECT  AS
HAVING SUCCESSFULLY COMPLETED A COURSE IN CONSTRUCTION SAFETY AND HEALTH
APPROVED  BY THE UNITED STATES DEPARTMENT OF LABOR'S OCCUPATIONAL SAFETY
AND HEALTH ADMINISTRATION THAT IS AT LEAST TEN HOURS IN DURATION; AND
  (C) WITH RESPECT TO ANY SOLAR INSTALLATION  COMMENCED  AFTER  DECEMBER
THIRTY-FIRST,  TWO  THOUSAND ELEVEN, HAS SUBMITTED TO THE CUSTOMER PROOF
OF COMPLIANCE WITH THE AFOREMENTIONED REQUIREMENTS OF THIS PARAGRAPH.
  (II) THE EMPLOYER OF A QUALIFIED INSTALLER  SHALL  ALSO  BE  DEEMED  A
QUALIFIED  INSTALLER,  PROVIDED  THAT  SUCH  EMPLOYER MAINTAINS WORKERS'
COMPENSATION INSURANCE AND COMMERCIAL LIABILITY INSURANCE IN THE AMOUNTS
REQUIRED BY LAW AND PROVIDED FURTHER THAT THE EMPLOYEES OF SUCH EMPLOYER
ENGAGED IN THE INSTALLATION OF SOLAR ELECTRIC SYSTEMS HAVE  SUCCESSFULLY
COMPLETED  A  COURSE  IN  CONSTRUCTION SAFETY AND HEALTH APPROVED BY THE
UNITED STATES DEPARTMENT  OF  LABOR'S  OCCUPATIONAL  SAFETY  AND  HEALTH
ADMINISTRATION THAT IS AT LEAST TEN HOURS IN DURATION;
  (III)  ANY  PERSON  OR  EMPLOYER  MEETING  THE DEFINITION OF QUALIFIED
INSTALLER AS SET FORTH HEREIN SHALL BE ELIGIBLE TO  PARTICIPATE  IN  ANY
SOLAR  ELECTRIC  INCENTIVE  PROGRAM OFFERED BY THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT ADMINISTRATION (NYSERDA) ON THE SAME TERMS  AND
CONDITIONS  AS  ANY  INDIVIDUAL  DESIGNATED BY NYSERDA TO BE A QUALIFIED
INSTALLER;
  (IV) ANY QUALIFIED INSTALLER IS ELIGIBLE TO PARTICIPATE IN ANY NYSERDA
INCENTIVE PROGRAM FOR A RESIDENTIAL  SOLAR  INSTALLATION  ON  THEIR  OWN
PREMISES WITHOUT MAINTAINING COMMERCIAL LIABILITY INSURANCE AND WORKERS'
COMPENSATION INSURANCE SO LONG AS THEY HAVE HOMEOWNERS INSURANCE;
  (M)  "SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT OF A
CERTAIN DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY  THE  COMMIS-
SION  PURSUANT TO SUBDIVISION THREE OF THIS SECTION, THAT A RETAIL ELEC-
TRIC SUPPLIER MAY SUBMIT TO THE COMMISSION IN ORDER TO COMPLY  WITH  ITS
ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION;
  (N)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
SEVEN YEARS, FOR THE PURCHASE OF SRECS FROM  A  QUALIFIED  SOLAR  ENERGY
GENERATOR;
  (O)  "STANDARD  SREC  OFFER"  MEANS  AN AGREEMENT BY A RETAIL ELECTRIC
SUPPLIER, ENTERED INTO WITH A RETAIL DISTRIBUTED SOLAR ENERGY  GENERATOR
IN  ADVANCE OF THE INSTALLATION OF A SOLAR ENERGY DEVICE BY SUCH GENERA-
TOR, TO PURCHASE FROM SUCH RETAIL DISTRIBUTED  SOLAR  ENERGY  GENERATOR,
FOR  A MINIMUM OF SEVEN YEARS, UPON SUCCESSFUL COMPLETION OF THE INSTAL-
LATION OF THE SOLAR ENERGY DEVICE AND, IN THE CASE OF A  SOLAR  ELECTRIC
DEVICE,  UPON  INTERCONNECTION  TO  THE  RETAIL DISTRIBUTION SYSTEM, THE
SRECS THAT WILL BE GENERATED BY SUCH SOLAR ENERGY DEVICE;
  (P) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION;
  (Q) "ENHANCED SREC" MEANS A SREC (I) ASSOCIATED  WITH  RESIDENTIAL  OR
SMALL  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY (A) BUILD-
ING-INTEGRATED SOLAR ENERGY EQUIPMENT OR (B) A SOLAR ENERGY DEVICE  THAT
CONSISTS  OF NEW YORK STATE CONTENT; OR (II) ASSOCIATED WITH RESIDENTIAL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT  WAS  INSTALLED USING QUALIFIED INSTALLERS TO WHOM PAYMENT OF WAGES

S. 4178--A                          4

AND SUPPLEMENTS FOR THE INSTALLATION OF SUCH SOLAR ENERGY DEVICE WAS  IN
ACCORDANCE  WITH  THE  PREVAILING  WAGES  AND  SUPPLEMENTS THAT WOULD BE
APPLICABLE TO A CONTRACT  FOR  PUBLIC  WORK,  PURSUANT  TO  SECTION  TWO
HUNDRED  TWENTY  OF  THE  LABOR LAW, IN THE LOCATION IN WHICH SUCH SOLAR
ENERGY DEVICE IS LOCATED AT THE TIME OF SUCH INSTALLATION. FOR EACH SUCH
ENHANCING ASPECT, AS PROVIDED FOR IN THIS PARAGRAPH,  AN  ENHANCED  SREC
SHALL  BE  DEEMED  TO HAVE THE ENVIRONMENTAL ATTRIBUTES OF AN ADDITIONAL
TWENTY-FIVE PERCENT OF ITS UNDERLYING MEGAWATT-HOURS; PROVIDED, HOWEVER,
THAT AN ENHANCED SREC SHALL  NOT  BE  DEEMED  TO  POSSESS  ENVIRONMENTAL
ATTRIBUTES  EXCEEDING  ONE  HUNDRED  AND FIFTY PERCENT OF THE UNDERLYING
SREC;
  (R) "AMERICAN-MADE CONTENT" MEANS:
  (I) A NON-MANUFACTURED GOOD THAT HAS BEEN MINED  OR  PRODUCED  IN  THE
UNITED STATES OR ANY PLACE SUBJECT TO THE JURISDICTION THEREOF; AND
  (II)  A MANUFACTURED GOOD IN WHICH (1) THE COMPONENT SUPPLIES OR MATE-
RIALS OF SUCH GOOD HAVE BEEN SUBSTANTIALLY TRANSFORMED BY A  PROCESS  OR
PROCESSES PERFORMED WITHIN THE UNITED STATES OR ANY PLACE SUBJECT TO THE
JURISDICTION  THEREOF,  OR (2) THE COST OF SUPPLIES THAT HAVE BEEN MINED
OR PRODUCED WITHIN THE UNITED STATES OR ANY PLACE SUBJECT TO THE  JURIS-
DICTION  THEREOF  CONSTITUTES  AT LEAST FIFTY PERCENT OF THE COST OF ALL
SUPPLIES USED IN THE MANUFACTURE;
  (S) "NEW YORK STATE CONTENT" MEANS:
  (I) A NON-MANUFACTURED GOOD THAT HAS BEEN MINED OR PRODUCED WITHIN THE
JURISDICTIONAL BOUNDARIES OF THE STATE OF NEW YORK; AND
  (II) A MANUFACTURED GOOD IN WHICH (1) THE COMPONENT SUPPLIES OR  MATE-
RIALS  OF  SUCH GOOD HAVE BEEN SUBSTANTIALLY TRANSFORMED BY A PROCESS OR
PROCESSES PERFORMED WITHIN THE JURISDICTIONAL BOUNDARIES OF THE STATE OF
NEW YORK, OR (2) THE COST OF SUPPLIES THAT HAVE BEEN MINED  OR  PRODUCED
WITHIN  THE  JURISDICTIONAL  BOUNDARIES OF THE STATE OF NEW YORK CONSTI-
TUTES AT LEAST FIFTY PERCENT OF THE COST OF ALL  SUPPLIES  USED  IN  THE
MANUFACTURE;
  (T) "KILOWATT," "MEGAWATT," "KILOWATT-HOUR," AND "MEGAWATT-HOUR" SHALL
INCLUDE  THEIR  ENERGY  EQUIVALENTS  STATED  IN TERMS OF BRITISH THERMAL
UNITS "BTU";
  (U) "COMPLIANCE YEAR" MEANS THE PERIOD BEGINNING  ON  JULY  FIRST  AND
ENDING  ON THE FOLLOWING JUNE THIRTIETH, AND SHALL BE IDENTIFIED ACCORD-
ING TO THE CALENDAR YEAR IN WHICH IT BEGINS.
  1-A. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION ONE OF THIS  SECTION
TO  THE  CONTRARY,  ELECTRIC  POWER  GENERATED  BY A SOLAR ENERGY DEVICE
LOCATED WITHIN THE JURISDICTIONAL BOUNDARIES OF THIS STATE, THE  INSTAL-
LATION OF WHICH WAS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND ELEV-
EN  AND  AT  LEAST  FIVE  PERCENT OF THE TOTAL PROJECT COST OF WHICH WAS
EXPENDED NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND ELEVEN  SHALL
BE  DEEMED "QUALIFIED SOLAR ENERGY GENERATION" AND SRECS ASSOCIATED WITH
SUCH A DEVICE MAY BE PURCHASED BY A RETAIL  ELECTRIC  SUPPLIER  TO  MEET
SUCH  SUPPLIER'S  ANNUAL  OBLIGATIONS  UNDER  THIS  SECTION; AND FURTHER
NOTWITHSTANDING ANY PROVISION OF SUBDIVISION ONE OF THIS SECTION TO  THE
CONTRARY,  ELECTRIC  POWER  GENERATED  BY A SOLAR ENERGY DEVICE THAT WAS
PLACED IN SERVICE WITHIN THE JURISDICTIONAL  BOUNDARIES  OF  THIS  STATE
PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN SHALL UNTIL JUNE THIRTIETH, TWO
THOUSAND FIFTEEN BE DEEMED "QUALIFIED SOLAR ENERGY GENERATION" AND SRECS
ASSOCIATED  WITH  SUCH  A  DEVICE  MAY BE PURCHASED BY A RETAIL ELECTRIC
SUPPLIER TO MEET SUCH SUPPLIER'S ANNUAL OBLIGATIONS UNDER  THIS  SECTION
UNTIL JUNE THIRTIETH, TWO THOUSAND FIFTEEN.

S. 4178--A                          5

  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
        2012           .33 %
        2013           .375%
        2014           .425%
        2015           .475%
        2016           .525%
        2017           .6  %
        2018           .65 %
        2019           .75 %
        2020           .9  %
        2021          1.0  %
        2022          1.25 %
        2023          1.5  %
        2024          1.5  %
        2025          1.5  %
  (B) AT LEAST FORTY 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 RETAIL  DISTRIB-
UTED  SOLAR ENERGY GENERATION, IN ACCORDANCE WITH THE FOLLOWING REQUIRE-
MENTS:
  (I) AT LEAST TEN 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  RESIDENTIAL
DISTRIBUTED SOLAR ENERGY GENERATION;
  (II)  AT  LEAST  TEN  PERCENT  OF  SUCH ANNUAL OBLIGATION SHALL BE MET
THROUGH THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL  RETAIL  DISTRIB-
UTED SOLAR ENERGY GENERATION;
  (III)  AT  LEAST  TEN  PERCENT  OF SUCH ANNUAL OBLIGATION SHALL BE MET
THROUGH THE PROCUREMENT OF SRECS ASSOCIATED WITH COMMERCIAL  DISTRIBUTED
SOLAR ENERGY GENERATION; AND
  (IV)  AT  LEAST  AN  ADDITIONAL  TEN  PERCENT OF THE ANNUAL OBLIGATION
APPLICABLE TO EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIB-
UTION COMPANY SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCIATED
WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF
ANY SIZE.
  (C) NOT MORE THAN SIXTY PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO
EACH  RETAIL  ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY
MAY BE MET BY THE PROCUREMENT OF SRECS ASSOCIATED WITH ENERGY GENERATION
PRODUCED BY SOLAR ENERGY DEVICES LOCATED OUTSIDE OF SUCH RETAIL ELECTRIC
SUPPLIER'S SERVICE TERRITORY.
  (D) FOR COMPLIANCE YEAR TWO THOUSAND TWELVE, AT LEAST  10  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 SOLAR ENERGY DEVICES THAT CONSIST OF  AMERICAN-
MADE  CONTENT;  FOR  COMPLIANCE  YEAR  TWO THOUSAND THIRTEEN AT LEAST 25
PERCENT OF SUCH OBLIGATION SHALL BE SO  MET;  FOR  COMPLIANCE  YEAR  TWO
THOUSAND  FOURTEEN  AT  LEAST  40 PERCENT OF SUCH OBLIGATION SHALL BE SO
MET; FOR COMPLIANCE YEAR TWO THOUSAND FIFTEEN AT  LEAST  60  PERCENT  OF
SUCH OBLIGATION SHALL BE SO MET; AND FOR EACH COMPLIANCE YEAR THEREAFTER
AT LEAST 80 PERCENT OF SUCH OBLIGATION SHALL BE MET THROUGH THE PROCURE-
MENT OF SRECS ASSOCIATED WITH SOLAR ENERGY DEVICES THAT CONSIST OF AMER-
ICAN-MADE CONTENT.

S. 4178--A                          6

  (E) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (F)  RETAIL  ELECTRIC SUPPLIERS MAY MEET THEIR OBLIGATIONS ESTABLISHED
BY THE COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH  THE  PROCUREMENT
OR  SRECS  TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED QUALIFIED SOLAR
ENERGY GENERATION.
  (G) NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, THE COMMIS-
SION, IN COORDINATION WITH THE WHOLESALE GRID OPERATOR, SHALL  ESTABLISH
AN  AUTOMATED SREC TRACKING SYSTEM, WHICH SHALL BE SUBSTANTIALLY SIMILAR
TO SYSTEMS ESTABLISHED AND USED  FOR  SIMILAR  PURPOSES  IN  NEIGHBORING
STATES.
  (H)  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.
  (I)  TRANSACTIONS  FOR  THE  PROCUREMENT  OF  SRECS BY RETAIL ELECTRIC
SUPPLIERS FROM QUALIFIED SOLAR ENERGY GENERATORS SHALL BE FOR  SRECS  IN
WHOLE UNITS.
  2-A. (A) ON  JUNE FIFTEENTH IN EACH YEAR, OR ON THE FIRST BUSINESS DAY
THEREAFTER,  THE COMMISSION SHALL ADMINISTER A SREC SALE IN WHICH QUALI-
FIED SOLAR ENERGY GENERATORS  SHALL  BE  ELIGIBLE  TO  PARTICIPATE.  THE
COMMISSION  SHALL  ESTABLISH  AND  MAINTAIN  A SOLAR SALE ACCOUNT ON THE
AUTOMATED SREC TRACKING SYSTEM INTO WHICH QUALIFIED SOLAR ENERGY GENERA-
TORS MAY, AT THEIR DISCRETION, DEPOSIT SRECS  BETWEEN  APRIL  FIRST  AND
APRIL  THIRTIETH OF EACH YEAR TO BE OFFERED AT SUCH SALE.  THE DEPOSITED
SRECS SHALL THEN BE RETIRED AND REISSUED BY THE COMMISSION AS  RE-MINTED
SRECS  ELIGIBLE  FOR PURCHASE BY RETAIL ELECTRIC DISTRIBUTION COMPANIES.
THESE SRECS SHALL BE ELIGIBLE TO BE USED  TO  MEET  OBLIGATIONS  OF  THE
RETAIL ELECTRICAL DISTRIBUTION COMPANIES IN THE COMPLIANCE YEAR IN WHICH
THEY  WERE  GENERATED  OR  IN  EITHER  OF THE TWO IMMEDIATELY SUBSEQUENT
COMPLIANCE YEARS. ANY RETAIL ELECTRIC SUPPLIER MAY PARTICIPATE AND ENTER
A BID FOR THE QUANTITY OF SRECS THEY WISH TO PURCHASE AT A  FIXED  PRICE
OF THREE HUNDRED DOLLARS PER SREC.
  (B)  IF  THE  TOTAL  NUMBER  OF  RE-MINTED SRECS BID FOR BY THE RETAIL
DISTRIBUTION COMPANIES IN THE SALE IS EQUAL TO OR MORE THAN  THE  NUMBER
OF  SRECS  DEPOSITED,  THEN  THE TOTAL AMOUNT OF DEPOSITED SRECS WILL BE
DISTRIBUTED TO THE BIDDERS IN A PRO-RATED MANNER SUCH THAT THE RATIO  OF
SRECS  RECEIVED  TO  SRECS  BID  FOR  BY  EACH BIDDER IS EQUAL AMONG ALL
BIDDERS, AND EACH QUALIFIED SOLAR ENERGY GENERATOR WHO CONTRIBUTED SRECS
SHALL RECEIVE A FIXED PAYMENT OF THREE HUNDRED DOLLARS PER SREC CONTRIB-
UTED, LESS A USAGE FEE OF FIVE PERCENT OF THE SALE PRICE OF EACH  DEPOS-
ITED SREC. THE USAGE FEE SHALL BE DEPOSITED INTO THE ALTERNATIVE COMPLI-
ANCE PAYMENT FUND. IF THE TOTAL NUMBER OF RE-MINTED SRECS BID FOR IN THE
AUCTION IS LESS THAN THE NUMBER OF SRECS DEPOSITED, THE AUCTION SHALL BE
VOID  AND  A  NEW  AUCTION  SHALL BE HELD WITHIN THREE BUSINESS DAYS, IN
WHICH ANY SRECS PURCHASED SHALL BE ELIGIBLE TO BE  USED  TO  MEET  OBLI-
GATIONS  OF  THE RETAIL ELECTRICAL DISTRIBUTION COMPANIES IN THE COMPLI-
ANCE YEAR IN WHICH THEY WERE GENERATED OR IN ANY OF THE THREE COMPLIANCE
YEARS SUBSEQUENT TO THE YEAR IN WHICH THEY WERE GENERATED.
  (C) IF THE TOTAL NUMBER OF RE-MINTED  SRECS  BID  FOR  BY  THE  RETAIL
DISTRIBUTION  COMPANIES  IN THE SECOND SALE IS EQUAL TO OR MORE THAN THE
NUMBER OF SRECS DEPOSITED, THEN THE TOTAL AMOUNT OF DEPOSITED SRECS WILL
BE DISTRIBUTED TO THE BIDDERS IN A PRO-RATED MANNER AND  EACH  QUALIFIED
SOLAR  ENERGY  GENERATOR  WHO CONTRIBUTED SRECS SHALL RECEIVE PAYMENT OF
THREE HUNDRED DOLLARS PER SREC CONTRIBUTED, LESS A  USAGE  FEE  OF  FIVE
PERCENT OF THE SALE PRICE OF EACH DEPOSITED SREC. IF THE TOTAL NUMBER OF

S. 4178--A                          7

RE-MINTED SRECS BID FOR IN THE SECOND AUCTION IS LESS THAN THE NUMBER OF
SRECS DEPOSITED, EACH BIDDER SHALL RECEIVE THE FULL NUMBER OF SRECS THAT
SUCH  BIDDER  ENTERED  A  BID  FOR,  AND PROCEEDS FROM THE SALE SHALL BE
DISTRIBUTED TO THE SREC CONTRIBUTORS IN A PRO-RATED MANNER SUCH THAT THE
RATIO OF SALE PROCEEDS RECEIVED TO SRECS CONTRIBUTED BY EACH CONTRIBUTOR
IS  EQUAL  AMONG  ALL CONTRIBUTORS. THE RE-MINTED SRECS IN EXCESS OF THE
NUMBER BID FOR SHALL BE RETURNED TO EACH  SOLAR  ENERGY  GENERATOR  THAT
DEPOSITED  SRECS  INTO THE SALE ACCOUNT IN A NUMBER PROPORTIONAL TO EACH
SOLAR ENERGY GENERATOR'S SHARE OF THE SRECS ORIGINALLY DEPOSITED IN  THE
SALE  ACCOUNT  FOR THAT YEAR. IF LESS THAN THE NUMBER OF SRECS DEPOSITED
INTO THE SALE ACCOUNT ARE SOLD, THE COMMISSION SHALL REVIEW THE  COMPLI-
ANCE  OBLIGATIONS  OF THE RETAIL ELECTRIC DISTRIBUTION COMPANIES FOR THE
SUBSEQUENT COMPLIANCE YEAR AND ADJUST UPWARD SUCH OBLIGATIONS  BASED  ON
THE COMMISSION'S DETERMINATION OF THE LEVEL NECESSARY TO ENSURE THAT THE
DEMAND  FOR  SRECS  GENERATED BY SUCH OBLIGATIONS SHALL BE SUFFICIENT TO
EQUAL THE QUANTITY OF SRECS PROJECTED TO BE PRODUCED BY QUALIFIED  SOLAR
ENERGY GENERATORS IN THE SUBSEQUENT YEAR.
  3.  (A) IN THE EVENT THAT A RETAIL ELECTRIC SUPPLIER FAILS TO MEET ITS
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF  THIS  SECTION,  IT  SHALL
DISCHARGE  SUCH  OBLIGATIONS  BY  MAKING  A SOLAR ALTERNATIVE COMPLIANCE
PAYMENT IN AN AMOUNT ESTABLISHED PURSUANT TO THIS SUBDIVISION.
  (B) NO LATER THAN FEBRUARY FIRST, TWO THOUSAND TWELVE, THE  COMMISSION
SHALL  ESTABLISH A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE THROUGH
THE YEAR TWO THOUSAND TWENTY-FIVE AT LEVELS THAT ARE  DETERMINED  TO  BE
SUFFICIENT  TO  STIMULATE  THE DEVELOPMENT OF NEW QUALIFIED SOLAR ENERGY
GENERATION EQUIPMENT NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN
SUBDIVISION TWO OF THIS SECTION. NO LATER THAN FEBRUARY  FIRST  OF  EACH
YEAR  THEREAFTER,  THE COMMISSION SHALL ANNUALLY REVIEW SUCH SCHEDULE TO
ENSURE THAT THE PAYMENTS ARE SET AT A LEVEL SUFFICIENT TO STIMULATE SUCH
DEVELOPMENT AND MAY ADOPT, AFTER APPROPRIATE NOTICE AND OPPORTUNITY  FOR
PUBLIC  COMMENT,  AN  INCREASE  OR  DECREASE  IN  ALTERNATIVE COMPLIANCE
PAYMENTS CONSISTENT WITH THE FINDINGS OF SUCH REVIEW.    THE  COMMISSION
SHALL NOT REDUCE LEVELS OF PAYMENTS FOR PREVIOUS YEARS.
  (C)  FIFTY  PERCENT  OF  ALL MONIES COLLECTED THROUGH SUCH ALTERNATIVE
COMPLIANCE PAYMENTS SHALL  BE  CREDITED  TO  THE  ELECTRIC  DISTRIBUTION
COMPANY'S  CUSTOMERS, AND FIFTY PERCENT OF SUCH MONIES SHALL BE DISTRIB-
UTED TO THE EMPIRE STATE  DEVELOPMENT  CORPORATION  FOR  SOLAR  INDUSTRY
DEVELOPMENT PROGRAMS IN COUNTIES OUTSIDE OF THE CITY OF NEW YORK.
  4.  (A)  NO  LATER  THAN  MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, THE
COMMISSION 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  OBLIGATIONS  ESTABLISHED  IN SUBDIVISION TWO OF THIS SECTION. THE
COMMISSION SHALL, IN ADDITION, ESTABLISH A TEMPLATE FOR A STANDARD  SREC
OFFER FOR THE FUTURE PURCHASE OF SRECS BY RETAIL ELECTRIC SUPPLIERS FROM
QUALIFIED  SOLAR  ENERGY GENERATORS OR PERSONS WHO WILL BECOME QUALIFIED
SOLAR ENERGY GENERATORS UPON THE COMPLETION OF A  PROPOSED  INSTALLATION
OF A SOLAR ENERGY DEVICE.
  (B) NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, EACH RETAIL
ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY SHALL SUBMIT
TO THE COMMISSION FOR REVIEW AND APPROVAL A SOLAR SOLICITATION PLAN  FOR
THE  ACHIEVEMENT  OF  ITS  OBLIGATIONS  PERTAINING TO THE PROCUREMENT OF
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION  ESTABLISHED  IN
SUBDIVISION  TWO OF THIS SECTION. SUCH PLAN SHALL INCLUDE DISTINCT TIME-
TABLES AND METHODOLOGIES FOR SOLICITING PROPOSALS FOR  SRECS  ASSOCIATED
WITH  THE CATEGORIES OF RESIDENTIAL, SMALL RETAIL, COMMERCIAL, AND OTHER

S. 4178--A                          8

RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS SOURCE DIVERSIFICATION REQUIREMENTS ESTABLISHED IN PARAGRAPH (B)
OF  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. THE
COMMISSION  MAY APPROVE, REJECT OR MODIFY AN APPLICATION FOR APPROVAL OF
SUCH 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.
  (C) EACH RETAIL ELECTRIC SUPPLIER THAT  IS  AN  ELECTRIC  DISTRIBUTION
COMPANY SHALL PROVIDE TO EACH PERSON WITH WHOM SUCH SUPPLIER ESTABLISHES
AN  AGREEMENT  FOR THE FUTURE PURCHASE AND SALE OF SRECS A STANDARD SREC
OFFER FOR THE PURCHASE OF SUCH SRECS, WHICH  SUBSTANTIALLY  CONFORMS  TO
THE  STANDARD  SREC  OFFER TEMPLATE ISSUED BY THE COMMISSION PURSUANT TO
PARAGRAPH (A) OF THIS SUBDIVISION.
  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 (A) IN A COST-EFFECTIVE
MANNER THAT ACHIEVES THE OBLIGATIONS AT LEAST COST AND AVOIDS  LONG-TERM
COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM; (B) PROVIDES ENHANCED
ELECTRICITY  RELIABILITY  WITHIN COMPANIES' SERVICE TERRITORIES; AND (C)
MINIMIZES PEAK LOAD IN CONSTRAINED AREAS.
  7. NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, THE  COMMIS-
SION  SHALL  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 RESIDENTIAL AND SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION,  FOR  THE  PURPOSE  OF ACHIEVING SUCH COMPANIES' OBLIGATIONS
PERTAINING TO SRECS  ASSOCIATED  WITH  SUCH  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 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 UNDER SOLAR PURCHASE AGREEMENTS AGAINST THE  PROCEEDS  OF
THE  SALE  OF  SRECS, 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.
  10.  (A) WITHIN THIRTY DAYS OF THE SUBMISSION OF THE ANNUAL COMPLIANCE
REPORTS FILED BY RETAIL ELECTRIC SUPPLIERS PURSUANT TO SUBDIVISION ELEV-
EN OF THIS SECTION, THE COMMISSION SHALL DETERMINE  THE  COMBINED  TOTAL
ANNUAL  EXPENDITURES  INCLUDING  THE  SAVINGS  IN AVOIDED COSTS, FOR THE
PROCUREMENT OF SRECS MADE BY RETAIL ELECTRIC SUPPLIERS FOR THE  PURPOSES

S. 4178--A                          9

OF MEETING THE ANNUAL REQUIREMENT SET FORTH IN PARAGRAPH (A) OF SUBDIVI-
SION  TWO  OF  THIS  SECTION  FOR  THE  APPLICABLE  COMPLIANCE YEAR AS A
PERCENTAGE OF THE TOTAL RETAIL ELECTRICITY  SALES  REVENUES  FOR  RETAIL
ELECTRIC  SUPPLIERS FOR SUCH COMPLIANCE YEAR. IF SUCH PERCENTAGE EXCEEDS
ONE 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
REQUIREMENTS FOR A COMPLIANCE YEAR DID NOT EXCEED  ONE  PERCENT  OF  THE
TOTAL  RETAIL  ELECTRICITY  SALES REVENUES FOR RETAIL ELECTRIC SUPPLIERS
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 SUBDIVI-
SION TWO OF THIS SECTION FOR  EACH  SUBSEQUENT  YEAR  UNTIL  THE  ANNUAL
REQUIREMENT  REACHES  THE  PERCENTAGE  SET  FORTH  IN SUCH PARAGRAPH 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.
  11. (A) NO LATER THAN JULY FIRST, TWO THOUSAND THIRTEEN, 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  DISTRIBUTION
COMPANY: (1) THE NUMBER OF SRECS EACH ASSOCIATED WITH RESIDENTIAL, SMALL

S. 4178--A                         10

RETAIL,  AND  COMMERCIAL DISTRIBUTED SOLAR ENERGY GENERATION, AND RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY CAPACI-
TY THAT WERE PROCURED; AND (2) THE NUMBER OF SUCH SRECS PROCURED THROUGH
SOLAR PURCHASE AGREEMENTS AND THE ELECTRIC DISTRIBUTION COMPANY'S OWNER-
SHIP OF QUALIFIED SOLAR ENERGY GENERATION EQUIPMENT, RESPECTIVELY.
  12.  THE  COMMISSION  SHALL, NO LATER THAN JANUARY FIRST, TWO THOUSAND
TWELVE, ESTABLISH AN ADMINISTRATIVE PROCESS TO FACILITATE  CERTIFICATION
BY  THE  INSTALLER OF A SOLAR ENERGY DEVICE TO THE OWNER OF SUCH DEVICE,
FOR PURPOSES  OF  ESTABLISHING  COMPLIANCE  WITH  QUALIFIED  CONDITIONS,
DENOMINATING  AN ENHANCED SREC, OR ESTABLISHING ELIGIBILITY OF SPECIFIED
SRECS TO SATISFY REQUIREMENTS RELATED TO AMERICAN-MADE CONTENT, PURSUANT
TO THIS SECTION, SECTION ONE THOUSAND FIVE  OF  THE  PUBLIC  AUTHORITIES
LAW,  OR  SECTION  ONE THOUSAND TWENTY-HH OF THE PUBLIC AUTHORITIES LAW,
THAT THE DEVICE CONSISTS OF AMERICAN-MADE  CONTENT  OR  NEW  YORK  STATE
CONTENT, THAT THE DEVICE WAS INSTALLED BY QUALIFIED INSTALLERS, AND THAT
THE PAYMENT OF WAGES AND SUPPLEMENTS FOR THE INSTALLATION OF SUCH DEVICE
WAS  IN  ACCORDANCE WITH THE PREVAILING WAGES AND SUPPLEMENTS THAT WOULD
BE APPLICABLE TO A CONTRACT FOR PUBLIC WORK,  PURSUANT  TO  SECTION  TWO
HUNDRED  TWENTY  OF  THE  LABOR LAW, IN THE LOCATION IN WHICH SUCH SOLAR
ENERGY DEVICE IS LOCATED AT THE TIME OF SUCH INSTALLATION. SUCH ADMINIS-
TRATIVE PROCESS SHALL INCLUDE ESTABLISHING AND  MAINTAINING  A  DATABASE
AND  REGISTRY  OF  SOLAR  ENERGY  DEVICES AND COMPONENTS THAT CONFORM TO
AMERICAN-MADE CONTENT AND NEW  YORK  STATE  CONTENT  SPECIFICATIONS,  AS
PROVIDED IN SUBDIVISION ONE OF THIS SECTION.
  S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "SOLAR ENERGY DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM INCIDENTAL SUNLIGHT BY MEANS OF THE PHOTOVOLTAIC EFFECT
AND IS INTERCONNECTED TO THE ELECTRICAL DISTRIBUTION SYSTEM;
  (2) "QUALIFIED SOLAR ENERGY GENERATION" MEANS ELECTRIC POWER GENERATED
BY A SOLAR ENERGY DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDIC-
TIONAL  BOUNDARIES  OF THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE AND THAT IS INSTALLED IN ACCORDANCE  WITH  QUALIFIED  CONDITIONS;
PROVIDED,  HOWEVER,  THAT NOTWITHSTANDING ANY PROVISION OF PARAGRAPH ONE
OF THIS SUBDIVISION TO THE CONTRARY, ELECTRIC POWER GENERATED BY A SOLAR
ENERGY DEVICE LOCATED  WITHIN  THE  JURISDICTIONAL  BOUNDARIES  OF  THIS
STATE,  THE  INSTALLATION  OF WHICH WAS COMMENCED ON OR AFTER JULY FIRST
TWO THOUSAND ELEVEN AND AT LEAST FIVE PERCENT OF THE TOTAL PROJECT  COST
OF  WHICH WAS EXPENDED NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
ELEVEN SHALL BE DEEMED "QUALIFIED SOLAR  ENERGY  GENERATION"  AND  SRECS
ASSOCIATED  WITH  SUCH  A  DEVICE  MAY BE PURCHASED BY A RETAIL ELECTRIC
SUPPLIER TO MEET SUCH SUPPLIER'S ANNUAL OBLIGATIONS UNDER THIS  SUBDIVI-
SION; AND FURTHER NOTWITHSTANDING ANY PROVISION OF PARAGRAPH ONE OF THIS
SUBDIVISION  TO THE CONTRARY, ELECTRIC POWER GENERATED BY A SOLAR ENERGY
DEVICE THAT WAS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL  BOUNDARIES
OF  THIS STATE PRIOR TO JULY FIRST, TWO THOUSAND TWELVE SHALL UNTIL JUNE
THIRTIETH, TWO THOUSAND FIFTEEN BE DEEMED "QUALIFIED SOLAR ENERGY GENER-
ATION" AND SRECS ASSOCIATED WITH SUCH A DEVICE MAY BE PURCHASED  BY  THE
AUTHORITY  TO  MEET  ITS ANNUAL OBLIGATIONS UNDER THIS SUBDIVISION UNTIL
JUNE THIRTIETH, TWO THOUSAND FIFTEEN;
  (3) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS  THE  OWNER  OF  A  SOLAR
ENERGY  DEVICE  OR  DEVICES  THAT PRODUCES QUALIFIED SOLAR ENERGY GENER-
ATION;

S. 4178--A                         11

  (4) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE  LOCATED  ON  THE
CUSTOMER SIDE OF THE ELECTRIC DISTRIBUTION COMPANY METER;
  (5)  "RESIDENTIAL  DISTRIBUTED  SOLAR  ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT IS EQUAL TO OR LESS THAN TEN KILOWATTS IN CAPACITY;
  (6)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT IS GREATER THAN TEN KILOWATTS AND EQUAL TO OR LESS THAN FIFTY KILO-
WATTS IN CAPACITY;
  (7)  "COMMERCIAL  DISTRIBUTED  SOLAR  ENERGY  GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT  IS  50 KILOWATTS OR GREATER AND LESS THAN OR EQUAL TO FIVE HUNDRED
KILOWATTS IN CAPACITY;
  (8) "QUALIFIED CONDITIONS" MEANS USING QUALIFIED INSTALLERS  AND,  FOR
ANY  SOLAR  ENERGY  DEVICE EXCEEDING SEVENTY-FIVE KILOWATTS IN CAPACITY,
PAYMENT TO SUCH QUALIFIED INSTALLERS OF WAGES AND  SUPPLEMENTS  FOR  THE
INSTALLATION OF SUCH SOLAR ENERGY DEVICE IN ACCORDANCE WITH THE PREVAIL-
ING  WAGES  AND  SUPPLEMENTS  THAT WOULD BE APPLICABLE TO A CONTRACT FOR
PUBLIC WORK, PURSUANT TO SECTION TWO HUNDRED TWENTY OF THE LABOR LAW, IN
THE LOCATION IN WHICH SUCH SOLAR ENERGY DEVICE IS LOCATED AT THE TIME OF
SUCH INSTALLATION.
  (9)(I) "QUALIFIED INSTALLER MEANS:  A PERSON WHO (A) WITH  RESPECT  TO
THE INSTALLATION OF A SOLAR ELECTRIC DEVICE, HOLDS A LICENSE AS A MASTER
ELECTRICIAN,  OR  IS  DESIGNATED  AN  APPROVED INSTALLER BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY,  OR  HAS  COMPLETED  A
REGISTERED  APPRENTICESHIP TRAINING PROGRAM FOR ELECTRICIANS PURSUANT TO
SECTION EIGHT HUNDRED ELEVEN OF THE LABOR LAW; AND
  (B) HAS BEEN CERTIFIED PRIOR TO PERFORMING ANY WORK ON THE PROJECT  AS
HAVING SUCCESSFULLY COMPLETED A COURSE IN CONSTRUCTION SAFETY AND HEALTH
APPROVED  BY THE UNITED STATES DEPARTMENT OF LABOR'S OCCUPATIONAL SAFETY
AND HEALTH ADMINISTRATION THAT IS AT LEAST TEN HOURS IN DURATION; AND
  (C) WITH RESPECT TO ANY SOLAR INSTALLATION  COMMENCED  AFTER  DECEMBER
THIRTY-FIRST,  TWO  THOUSAND ELEVEN, HAS SUBMITTED TO THE CUSTOMER PROOF
OF COMPLIANCE WITH THE AFOREMENTIONED REQUIREMENTS OF THIS PARAGRAPH.
  (II) THE EMPLOYER OF A QUALIFIED INSTALLER  SHALL  ALSO  BE  DEEMED  A
QUALIFIED  INSTALLER,  PROVIDED  THAT  SUCH  EMPLOYER  MAINTAINS WORKERS
COMPENSATION INSURANCE AND COMMERCIAL LIABILITY INSURANCE IN THE AMOUNTS
REQUIRED BY LAW AND PROVIDED FURTHER THAT THE EMPLOYEES OF SUCH EMPLOYER
INVOLVED IN SOLAR INSTALLATIONS HAVE SUCCESSFULLY COMPLETED A COURSE  IN
CONSTRUCTION  SAFETY AND HEALTH APPROVED BY THE UNITED STATES DEPARTMENT
OF LABOR'S OCCUPATIONAL SAFETY AND  HEALTH  ADMINISTRATION  THAT  IS  AT
LEAST TEN HOURS IN DURATION.
  (10)  "SOLAR  PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
SEVEN YEARS, FOR THE PURCHASE OF SRECS FROM  A  QUALIFIED  SOLAR  ENERGY
GENERATOR;
  (11)  "STANDARD  SREC  OFFER"  MEANS  AN  AGREEMENT  BY THE AUTHORITY,
ENTERED INTO WITH A RETAIL DISTRIBUTED SOLAR ENERGY GENERATOR IN ADVANCE
OF THE INSTALLATION OF A SOLAR  ENERGY  DEVICE  BY  SUCH  GENERATOR,  TO
PURCHASE  FROM  SUCH  RETAIL  DISTRIBUTED  SOLAR ENERGY GENERATOR, FOR A
MINIMUM OF SEVEN YEARS, UPON SUCCESSFUL COMPLETION OF  THE  INSTALLATION
OF  THE SOLAR ENERGY DEVICE AND, IN THE CASE OF A SOLAR ELECTRIC DEVICE,
UPON INTERCONNECTION TO THE RETAIL DISTRIBUTION SYSTEM, THE  SRECS  THAT
WILL BE GENERATED BY SUCH SOLAR ENERGY DEVICE;

S. 4178--A                         12

  (12) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION;
  (13)  "ENHANCED  SREC" MEANS A SREC (I) ASSOCIATED WITH RESIDENTIAL OR
SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  PRODUCED  BY  A  SOLAR
ENERGY  DEVICE  THAT CONSISTS OF NEW YORK STATE CONTENT; OR (II) ASSOCI-
ATED WITH RESIDENTIAL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A
SOLAR  ENERGY  DEVICE  THAT  WAS INSTALLED USING QUALIFIED INSTALLERS TO
WHOM PAYMENT OF WAGES AND SUPPLEMENTS FOR THE INSTALLATION OF SUCH SOLAR
ENERGY DEVICE WAS IN ACCORDANCE WITH THE PREVAILING  WAGES  AND  SUPPLE-
MENTS  THAT  WOULD BE APPLICABLE TO A CONTRACT FOR PUBLIC WORK, PURSUANT
TO SECTION TWO HUNDRED TWENTY OF THE LABOR LAW, IN THE LOCATION IN WHICH
SUCH SOLAR ENERGY DEVICE IS LOCATED AT THE TIME  OF  SUCH  INSTALLATION.
FOR  EACH  SUCH  ENHANCING ASPECT, AS PROVIDED FOR IN THIS PARAGRAPH, AN
ENHANCED SREC SHALL BE DEEMED TO HAVE THE ENVIRONMENTAL ATTRIBUTES OF AN
ADDITIONAL  TWENTY-FIVE  PERCENT  OF  ITS   UNDERLYING   MEGAWATT-HOURS;
PROVIDED,  HOWEVER, THAT AN ENHANCED SREC SHALL NOT BE DEEMED TO POSSESS
ENVIRONMENTAL ATTRIBUTES EXCEEDING ONE HUNDRED AND FIFTY PERCENT OF  THE
UNDERLYING SREC;
  (14) "AMERICAN-MADE CONTENT" MEANS:
  (A)  A  NON-MANUFACTURED  GOOD  THAT HAS BEEN MINED OR PRODUCED IN THE
UNITED STATES OR ANY PLACE SUBJECT TO THE JURISDICTION THEREOF; AND
  (B) A MANUFACTURED GOOD IN WHICH (I) THE COMPONENT SUPPLIES OR MATERI-
ALS OF SUCH GOOD HAVE BEEN SUBSTANTIALLY TRANSFORMED  BY  A  PROCESS  OR
PROCESSES PERFORMED WITHIN THE UNITED STATES OR ANY PLACE SUBJECT TO THE
JURISDICTION  THEREOF, OR (II) THE COST OF SUPPLIES THAT HAVE BEEN MINED
OR PRODUCED WITHIN THE UNITED STATES OR ANY PLACE SUBJECT TO THE  JURIS-
DICTION  THEREOF  CONSTITUTES  AT LEAST FIFTY PERCENT OF THE COST OF ALL
SUPPLIES USED IN THE MANUFACTURE;
  (15) "NEW YORK STATE CONTENT" MEANS:
  (A) A NON-MANUFACTURED GOOD THAT HAS BEEN MINED OR PRODUCED WITHIN THE
JURISDICTIONAL BOUNDARIES OF THE STATE OF NEW YORK; OR
  (B) A MANUFACTURED GOOD IN WHICH (I) THE COMPONENT SUPPLIES OR MATERI-
ALS OF SUCH GOOD HAVE BEEN SUBSTANTIALLY TRANSFORMED  BY  A  PROCESS  OR
PROCESSES PERFORMED WITHIN THE JURISDICTIONAL BOUNDARIES OF THE STATE OF
NEW  YORK, OR (II) THE COST OF SUPPLIES THAT HAVE BEEN MINED OR PRODUCED
WITHIN THE JURISDICTIONAL BOUNDARIES OF THE STATE OF  NEW  YORK  CONSTI-
TUTES  AT  LEAST  FIFTY  PERCENT OF THE COST OF ALL SUPPLIES USED IN THE
MANUFACTURE;
  (16)  "KILOWATT,"  "MEGAWATT,"  "KILOWATT-HOUR,"  AND  "MEGAWATT-HOUR"
SHALL  INCLUDE THEIR ENERGY EQUIVALENTS STATED IN TERMS OF BRITISH THER-
MAL UNITS "BTU";
  (17) "COMPLIANCE YEAR" MEANS THE PERIOD BEGINNING ON  JULY  FIRST  AND
ENDING  ON THE FOLLOWING JUNE THIRTIETH, AND SHALL BE IDENTIFIED ACCORD-
ING THE THE CALENDAR YEAR IN WHICH IT BEGINS; AND
  (18) "SOLAR ALTERNATIVE COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT  OF  A
CERTAIN  DOLLAR  AMOUNT  PER  MEGAWATT-HOUR,  AS ESTABLISHED PURSUANT TO
PARAGRAPH (C) OF THIS SUBDIVISION THAT THE AUTHORITY MAY SUBMIT  TO  THE
NEW YORK INDEPENDENT SYSTEM OPERATOR "NYISO" IN ORDER TO COMPLY WITH ITS
ANNUAL OBLIGATIONS ESTABLISHED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  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
        2012          0.05%

S. 4178--A                         13

        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%
        2022          1.25%
        2023          1.50%
        2024          2.00%
        2025          2.50%
  (2)  AT LEAST FORTY PERCENT OF THE ANNUAL OBLIGATION OF THE AUTHORITY,
AS ESTABLISHED IN THIS PARAGRAPH, SHALL BE MET THROUGH  THE  PROCUREMENT
OF  SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, IN
ACCORDANCE WITH THE FOLLOWING REQUIREMENTS:
  (I) AT LEAST TEN PERCENT OF THE ANNUAL  OBLIGATION  OF  THE  AUTHORITY
SHALL  BE  MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED WITH RESIDEN-
TIAL DISTRIBUTED SOLAR ENERGY GENERATION;
  (II) AT LEAST TEN PERCENT OF SUCH  ANNUAL  OBLIGATIONS  SHALL  BE  MET
THROUGH  THE  PROCUREMENT OF SRECS ASSOCIATED WITH SMALL RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION;
  (III) AT LEAST TEN PERCENT OF SUCH  ANNUAL  OBLIGATION  SHALL  BE  MET
THROUGH  THE PROCUREMENT OF SRECS ASSOCIATED WITH COMMERCIAL DISTRIBUTED
SOLAR ENERGY GENERATION; AND
  (IV) AT LEAST AN ADDITIONAL TEN PERCENT OF THE  ANNUAL  OBLIGATION  OF
THE  AUTHORITY  SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED
WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF
ANY SIZE.
  (3) NOT MORE THAN SIXTY  PERCENT  OF  THE  ANNUAL  OBLIGATION  OF  THE
AUTHORITY  MAY BE MET BY THE PROCUREMENT OF SRECS ASSOCIATED WITH ENERGY
GENERATION PRODUCED BY SOLAR  ENERGY  DEVICES  LOCATED  OUTSIDE  OF  THE
AUTHORITY'S SERVICE TERRITORY.
  (4)  FOR  COMPLIANCE YEAR TWO THOUSAND TWELVE, AT LEAST TEN 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 SOLAR ENERGY DEVICES THAT CONSIST OF AMERICAN-
MADE CONTENT; FOR COMPLIANCE YEAR TWO THOUSAND THIRTEEN AT  LEAST  TWEN-
TY-FIVE  PERCENT OF SUCH OBLIGATION SHALL BE SO MET; FOR COMPLIANCE YEAR
TWO THOUSAND FOURTEEN AT LEAST FORTY PERCENT OF SUCH OBLIGATION SHALL BE
SO MET; FOR COMPLIANCE YEAR TWO THOUSAND FIFTEEN AT LEAST SIXTY  PERCENT
OF  SUCH OBLIGATION SHALL BE SO MET; AND FOR EACH COMPLIANCE YEAR THERE-
AFTER AT LEAST EIGHTY PERCENT OF SUCH OBLIGATION SHALL  BE  MET  THROUGH
THE  PROCUREMENT  OF  SRECS  ASSOCIATED  WITH  SOLAR ENERGY DEVICES THAT
CONSIST OF AMERICAN-MADE CONTENT.
  (5) TRANSACTIONS FOR THE  PROCUREMENT  OF  SRECS  BY  RETAIL  ELECTRIC
SUPPLIERS  FROM  QUALIFIED SOLAR ENERGY GENERATORS SHALL BE FOR SRECS IN
WHOLE UNITS.
  (6) 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.
  (7) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.

S. 4178--A                         14

  (8) 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)  IN THE EVENT THAT THE AUTHORITY FAILS TO MEET ITS OBLIGATIONS
ESTABLISHED IN PARAGRAPH (B) OF THIS  SUBDIVISION,  IT  SHALL  DISCHARGE
SUCH  OBLIGATIONS BY MAKING A SOLAR ALTERNATIVE COMPLIANCE PAYMENT IN AN
AMOUNT ESTABLISHED PURSUANT TO THIS PARAGRAPH.
  (2) FOR COMPLIANCE YEAR TWO THOUSAND TWELVE THE ANNUAL  SOLAR  COMPLI-
ANCE  PAYMENT  SHALL  BE  SIX HUNDRED DOLLARS PER MEGAWATT. THE NEW YORK
INDEPENDENT SYSTEM OPERATOR "NYISO" SHALL ESTABLISH NO LATER THAN FEBRU-
ARY FIRST, TWO THOUSAND THIRTEEN A SOLAR ALTERNATIVE COMPLIANCE  PAYMENT
SCHEDULE  THROUGH  THE  YEAR TWO THOUSAND TWENTY-FIVE AT LEVELS THAT ARE
DETERMINED TO BE SUFFICIENT TO STIMULATE THE DEVELOPMENT OF  NEW  QUALI-
FIED  SOLAR  ENERGY  GENERATION EQUIPMENT NECESSARY TO ACHIEVE THE OBLI-
GATIONS ESTABLISHED IN PARAGRAPH (B) OF THIS SUBDIVISION. NO LATER  THAN
FEBRUARY FIRST OF EACH YEAR THEREAFTER, NYISO SHALL ANNUALLY REVIEW SUCH
SCHEDULE  TO  ENSURE  THAT THE PAYMENTS ARE SET AT A LEVEL SUFFICIENT TO
STIMULATE SUCH DEVELOPMENT AND MAY ADOPT, AFTER APPROPRIATE  NOTICE  AND
OPPORTUNITY  FOR  PUBLIC COMMENT, AN INCREASE OR DECREASE IN ALTERNATIVE
COMPLIANCE  PAYMENTS  CONSISTENT  WITH  THE  FINDINGS  OF  SUCH  REVIEW,
PROVIDED  THAT  THE  AMOUNT PER MEGAWATT OF ANY COMPLIANCE PAYMENT FOR A
COMPLIANCE YEAR SHALL BE NOT LESS THAN NINETY PERCENT OF THE AMOUNT  PER
MEGAWATT  OF  COMPLIANCE  PAYMENTS FOR THE PREVIOUS COMPLIANCE YEAR, AND
PROVIDED FURTHER THAT NYISO SHALL NOT  REDUCE  LEVELS  OF  PAYMENTS  FOR
PREVIOUS  YEARS,  NOR  SHALL  NYISO  PROVIDE RELIEF IN ANY FORM FROM THE
OBLIGATION OF PAYMENT OF THE SOLAR ALTERNATIVE  COMPLIANCE  PAYMENTS  BY
THE AUTHORITY.
  (3)  FIFTY  PERCENT  OF  ALL MONIES COLLECTED THROUGH SUCH ALTERNATIVE
COMPLIANCE PAYMENTS SHALL BE MADE AVAILABLE BY NYISO  FOR  SOLAR  INITI-
ATIVES  TO  BE  UNDERTAKEN  BY  MUNICIPALITIES  IN  THE STATE, AND FIFTY
PERCENT OF SUCH MONIES SHALL BE DISTRIBUTED TO THE EMPIRE STATE DEVELOP-
MENT CORPORATION FOR SOLAR INDUSTRY  DEVELOPMENT  PROGRAMS  IN  COUNTIES
OUTSIDE OF THE CITY OF NEW YORK.
  D. NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, THE AUTHORI-
TY  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 SOLAR SOLICITATION PLAN FOR
THE  ACHIEVEMENT  OF  ITS  OBLIGATIONS  PERTAINING TO THE PROCUREMENT OF
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION  ESTABLISHED  IN
PARAGRAPH  (B)  OF  THIS  SUBDIVISION.  SUCH PLAN SHALL INCLUDE DISTINCT
TIMETABLES AND METHODOLOGIES FOR SOLICITING PROPOSALS FOR SRECS  ASSOCI-
ATED  WITH  THE CATEGORIES OF RESIDENTIAL, SMALL RETAIL, COMMERCIAL, AND
OTHER RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  FOR  THE  PURPOSE  OF
FULFILLING   ITS  SOURCE  DIVERSIFICATION  REQUIREMENTS  ESTABLISHED  IN
SUBPARAGRAPH TWO OF PARAGRAPH (B) OF THIS SUBDIVISION.  THE  AUTHORITY'S
SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVERSITY OF SOLAR
PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES.
  E.  (1)  IF  THE  AUTHORITY  DETERMINES  THAT ITS ANNUAL EXPENDITURES,
INCLUDING SAVINGS IN AVOIDED COSTS, FOR THE PROCUREMENT OF  SRECS,  MADE
FOR THE PURPOSES OF MEETING THE ANNUAL REQUIREMENT SET FORTH IN SUBPARA-
GRAPH  ONE  OF  PARAGRAPH (B) OF THIS SUBDIVISION FOR A COMPLIANCE YEAR,
EXCEED ONE 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 SUBPARAGRAPH TWO OF THIS PARAGRAPH.

S. 4178--A                         15

  (2)  IF  THE LIMITATION PROVIDED FOR IN SUBPARAGRAPH ONE OF THIS PARA-
GRAPH 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  PERCENT  OF ITS ANNUAL RETAIL ELECTRICITY REVENUES 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  SUBPARAGRAPH  ONE  OF
PARAGRAPH  (B)  OF  THIS SUBDIVISION FOR THE COMPLIANCE YEAR IMMEDIATELY
FOLLOWING THE COMPLIANCE YEAR FOR WHICH THE LIMITATION  IN  SUBPARAGRAPH
ONE  OF  THIS  PARAGRAPH  WAS  TRIGGERED.  THE  ANNUAL REQUIREMENT SHALL
CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR IN SUBPARAGRAPH  ONE
OF  PARAGRAPH (B) OF THIS SUBDIVISION FOR EACH SUBSEQUENT YEAR UNTIL THE
ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH IN SUCH SUBPARAGRAPH
FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  F. (1) NO LATER THAN JULY FIRST, TWO THOUSAND THIRTEEN, 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
B  OF  THIS  SUBDIVISION;  (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED
WITH RESIDENTIAL, SMALL RETAIL, AND COMMERCIAL DISTRIBUTED SOLAR  ENERGY
GENERATION,  AND  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT OF ANY CAPACITY THAT WERE PROCURED; AND (III)  THE  NUMBER  OF
SUCH  SRECS  PROCURED THROUGH SOLAR PURCHASE AGREEMENTS AND THE AUTHORI-
TY'S OWNERSHIP OF QUALIFIED SOLAR ENERGY GENERATION  EQUIPMENT,  RESPEC-
TIVELY.
  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 SOLAR ENERGY EQUIPMENT" MEANS A SOLAR  ENERGY
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)  "SOLAR ENERGY DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM INCIDENTAL SUNLIGHT BY MEANS OF THE PHOTOVOLTAIC EFFECT
AND IS INTERCONNECTED TO THE ELECTRICAL DISTRIBUTION SYSTEM;
  (C) "QUALIFIED SOLAR ENERGY GENERATION" MEANS ELECTRIC POWER GENERATED
BY A SOLAR ENERGY DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDIC-
TIONAL  BOUNDARIES  OF THE STATE ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE AND THAT IS INSTALLED IN ACCORDANCE WITH QUALIFIED CONDITIONS;
  (D) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS  THE  OWNER  OF  A  SOLAR
ENERGY  DEVICE  OR  DEVICES  THAT PRODUCES QUALIFIED SOLAR ENERGY GENER-
ATION;

S. 4178--A                         16

  (E) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE  LOCATED  ON  THE
CUSTOMER SIDE OF THE ELECTRIC DISTRIBUTION COMPANY METER;
  (F)  "RESIDENTIAL  DISTRIBUTED  SOLAR  ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT IS EQUAL TO OR LESS THAN TEN KILOWATTS IN CAPACITY;
  (G)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT IS GREATER THAN TEN KILOWATTS AND EQUAL TO OR LESS THAN FIFTY KILO-
WATTS IN CAPACITY;
  (H)  "COMMERCIAL  DISTRIBUTED  SOLAR  ENERGY  GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY A  SOLAR  ENERGY  DEVICE
THAT  IS  FIFTY  KILOWATTS  OR  GREATER  AND  EQUAL TO OR LESS THAN FIVE
HUNDRED KILOWATTS IN CAPACITY;
  (I) "QUALIFIED CONDITIONS" MEANS USING QUALIFIED INSTALLERS  AND,  FOR
ANY  SOLAR  ENERGY  DEVICE EXCEEDING SEVENTY-FIVE KILOWATTS IN CAPACITY,
PAYMENT TO SUCH QUALIFIED INSTALLERS OF WAGES AND  SUPPLEMENTS  FOR  THE
INSTALLATION OF SUCH SOLAR ENERGY DEVICE IN ACCORDANCE WITH THE PREVAIL-
ING  WAGES  AND  SUPPLEMENTS  THAT WOULD BE APPLICABLE TO A CONTRACT FOR
PUBLIC WORK, PURSUANT TO SECTION TWO HUNDRED TWENTY OF THE LABOR LAW, IN
THE LOCATION IN WHICH SUCH SOLAR ENERGY DEVICE IS LOCATED AT THE TIME OF
SUCH INSTALLATION;
  (J) (I) "QUALIFIED INSTALLER" MEANS:
  A PERSON WHO: (A) WITH RESPECT TO THE INSTALLATION OF A SOLAR ELECTRIC
DEVICE, HOLDS A LICENSE AS A MASTER ELECTRICIAN, OR,  IS  DESIGNATED  AN
APPROVED INSTALLER BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY, OR HAS COMPLETED A REGISTERED APPRENTICESHIP TRAINING PROGRAM
FOR  ELECTRICIANS  PURSUANT TO SECTION EIGHT HUNDRED ELEVEN OF THE LABOR
LAW; AND
  (B) HAS BEEN CERTIFIED PRIOR TO PERFORMING ANY WORK ON THE PROJECT  AS
HAVING SUCCESSFULLY COMPLETED A COURSE IN CONSTRUCTION SAFETY AND HEALTH
APPROVED  BY THE UNITED STATES DEPARTMENT OF LABOR'S OCCUPATIONAL SAFETY
AND HEALTH ADMINISTRATION THAT IS AT LEAST TEN HOURS IN DURATION; AND
  (C) WITH RESPECT TO ANY SOLAR INSTALLATION  COMMENCED  AFTER  DECEMBER
THIRTY-FIRST,  TWO  THOUSAND ELEVEN, HAS SUBMITTED TO THE CUSTOMER PROOF
OF COMPLIANCE WITH THE AFOREMENTIONED REQUIREMENTS OF THIS PARAGRAPH.
  (II) THE EMPLOYER OF A QUALIFIED INSTALLER  SHALL  ALSO  BE  DEEMED  A
QUALIFIED  INSTALLER,  PROVIDED  THAT  SUCH  EMPLOYER  MAINTAINS WORKERS
COMPENSATION INSURANCE AND COMMERCIAL LIABILITY INSURANCE IN THE AMOUNTS
REQUIRED BY LAW AND PROVIDED FURTHER THAT THE EMPLOYEES OF SUCH EMPLOYER
ENGAGED  IN  INSTALLATIONS  HAVE  SUCCESSFULLY  COMPLETED  A  COURSE  IN
CONSTRUCTION  SAFETY AND HEALTH APPROVED BY THE UNITED STATES DEPARTMENT
OF LABOR'S OCCUPATIONAL SAFETY AND  HEALTH  ADMINISTRATION  THAT  IS  AT
LEAST TEN HOURS IN DURATION.
  (K)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
SEVEN YEARS, FOR THE PURCHASE OF SRECS FROM  A  QUALIFIED  SOLAR  ENERGY
GENERATOR;
  (L) "STANDARD SREC OFFER" MEANS AN AGREEMENT BY THE AUTHORITY, ENTERED
INTO  WITH A RETAIL DISTRIBUTED SOLAR ENERGY GENERATOR IN ADVANCE OF THE
INSTALLATION OF A SOLAR ENERGY DEVICE BY  SUCH  GENERATOR,  TO  PURCHASE
FROM  SUCH  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATOR, FOR A MINIMUM OF
SEVEN YEARS, UPON SUCCESSFUL COMPLETION OF THE INSTALLATION OF THE SOLAR
ENERGY DEVICE AND, IN THE CASE OF A SOLAR ELECTRIC DEVICE,  UPON  INTER-
CONNECTION  TO  THE  RETAIL  DISTRIBUTION SYSTEM, THE SRECS THAT WILL BE
GENERATED BY SUCH SOLAR ENERGY DEVICE;

S. 4178--A                         17

  (M) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION;
  (N)  "ENHANCED  SREC"  MEANS A SREC (I) ASSOCIATED WITH RESIDENTIAL OR
SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY (A)  BUILD-
ING-INTEGRATED  SOLAR ENERGY EQUIPMENT OR (B) A SOLAR ENERGY DEVICE THAT
CONSISTS OF NEW YORK STATE CONTENT; OR (II) ASSOCIATED WITH  RESIDENTIAL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A SOLAR ENERGY DEVICE
THAT WAS INSTALLED USING QUALIFIED INSTALLERS TO WHOM PAYMENT  OF  WAGES
AND  SUPPLEMENTS FOR THE INSTALLATION OF SUCH SOLAR ENERGY DEVICE WAS IN
ACCORDANCE WITH THE PREVAILING  WAGES  AND  SUPPLEMENTS  THAT  WOULD  BE
APPLICABLE  TO  A  CONTRACT  FOR  PUBLIC  WORK,  PURSUANT TO SECTION TWO
HUNDRED TWENTY OF THE LABOR LAW, IN THE LOCATION  IN  WHICH  SUCH  SOLAR
ENERGY DEVICE IS LOCATED AT THE TIME OF SUCH INSTALLATION. FOR EACH SUCH
ENHANCING  ASPECT,  AS  PROVIDED FOR IN THIS PARAGRAPH, AN ENHANCED SREC
SHALL BE DEEMED TO HAVE THE ENVIRONMENTAL ATTRIBUTES  OF  AN  ADDITIONAL
TWENTY-FIVE PERCENT OF ITS UNDERLYING MEGAWATT-HOURS; PROVIDED, HOWEVER,
THAT  AN  ENHANCED  SREC  SHALL  NOT  BE DEEMED TO POSSESS ENVIRONMENTAL
ATTRIBUTES EXCEEDING ONE HUNDRED AND FIFTY  PERCENT  OF  THE  UNDERLYING
SREC;
  (O) "AMERICAN-MADE CONTENT" MEANS:
  (I)  A  NON-MANUFACTURED  GOOD  THAT HAS BEEN MINED OR PRODUCED IN THE
UNITED STATES OR ANY PLACE SUBJECT TO THE JURISDICTION THEREOF; OR
  (II) A MANUFACTURED GOOD IN WHICH (1) THE COMPONENT SUPPLIES OR  MATE-
RIALS  OF  SUCH GOOD HAVE BEEN SUBSTANTIALLY TRANSFORMED BY A PROCESS OR
PROCESSES PERFORMED WITHIN THE UNITED STATES OR ANY PLACE SUBJECT TO THE
JURISDICTION THEREOF, OR (2) THE COST OF SUPPLIES THAT HAVE  BEEN  MINED
OR  PRODUCED WITHIN THE UNITED STATES OR ANY PLACE SUBJECT TO THE JURIS-
DICTION THEREOF CONSTITUTES AT LEAST FIFTY PERCENT OF THE  COST  OF  ALL
SUPPLIES USED IN THE MANUFACTURE;
  (P) "NEW YORK STATE CONTENT" MEANS:
  (I) A NON-MANUFACTURED GOOD THAT HAS BEEN MINED OR PRODUCED WITHIN THE
JURISDICTIONAL BOUNDARIES OF THE STATE OF NEW YORK; OR
  (II)  A MANUFACTURED GOOD IN WHICH (1) THE COMPONENT SUPPLIES OR MATE-
RIALS OF SUCH GOOD HAVE BEEN SUBSTANTIALLY TRANSFORMED BY A  PROCESS  OR
PROCESSES PERFORMED WITHIN THE JURISDICTIONAL BOUNDARIES OF THE STATE OF
NEW  YORK,  OR (2) THE COST OF SUPPLIES THAT HAVE BEEN MINED OR PRODUCED
WITHIN THE JURISDICTIONAL BOUNDARIES OF THE STATE OF  NEW  YORK  CONSTI-
TUTES  AT  LEAST  FIFTY  PERCENT OF THE COST OF ALL SUPPLIES USED IN THE
MANUFACTURE;
  (Q) "KILOWATT," "MEGAWATT," "KILOWATT-HOUR," AND "MEGAWATT-HOUR" SHALL
INCLUDE THEIR ENERGY EQUIVALENTS STATED  IN  TERMS  OF  BRITISH  THERMAL
UNITS "BTU."
  (R)  "COMPLIANCE  YEAR"  MEANS  THE PERIOD BEGINNING ON JULY FIRST AND
ENDING ON THE FOLLOWING JUNE THIRTIETH, AND SHALL BE IDENTIFIED  ACCORD-
ING TO THE CALENDAR YEAR IN WHICH IT BEGINS;
  (S)  "SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT OF A
CERTAIN DOLLAR AMOUNT PER  MEGAWATT-HOUR,  AS  ESTABLISHED  PURSUANT  TO
SUBDIVISION  THREE  OF THIS SECTION THAT THE AUTHORITY MAY SUBMIT TO THE
NEW YORK INDEPENDENT SYSTEM OPERATOR "NYISO" IN ORDER TO COMPLY WITH ITS
ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  1-A. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION ONE OF THIS  SECTION
TO  THE  CONTRARY,  ELECTRIC  POWER  GENERATED  BY A SOLAR ENERGY DEVICE
LOCATED WITHIN THE JURISDICTIONAL BOUNDARIES OF THIS STATE, THE  INSTAL-
LATION OF WHICH WAS COMMENCED ON OR AFTER JULY FIRST TWO THOUSAND ELEVEN
AND  AT  LEAST  FIVE  PERCENT  OF  THE  TOTAL  PROJECT COST OF WHICH WAS

S. 4178--A                         18

EXPENDED NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND ELEVEN  SHALL
BE  DEEMED "QUALIFIED SOLAR ENERGY GENERATION" AND SRECS ASSOCIATED WITH
SUCH A DEVICE MAY BE PURCHASED BY A RETAIL  ELECTRIC  SUPPLIER  TO  MEET
SUCH  SUPPLIER'S  ANNUAL  OBLIGATIONS  UNDER  THIS  SECTION; AND FURTHER
NOTWITHSTANDING ANY PROVISION OF SUBDIVISION ONE OF THIS SECTION TO  THE
CONTRARY,  THE  ELECTRIC  POWER  OR  THERMAL ENERGY GENERATED BY A SOLAR
ENERGY DEVICE THAT WAS PLACED IN SERVICE WITHIN THE JURISDICTIONAL BOUN-
DARIES OF THIS STATE PRIOR TO JULY  FIRST,  TWO  THOUSAND  TWELVE  SHALL
UNTIL  JUNE  THIRTIETH,  TWO THOUSAND FIFTEEN BE DEEMED "QUALIFIED SOLAR
ENERGY GENERATION" AND SRECS  ASSOCIATED  WITH  SUCH  A  DEVICE  MAY  BE
PURCHASED  BY  THE  AUTHORITY  TO MEET ITS ANNUAL OBLIGATIONS UNDER THIS
SECTION UNTIL JUNE THIRTIETH, TWO THOUSAND FIFTEEN.
  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
        2012          0.05%
        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%
        2022          1.25%
        2023          1.50%
        2024          2.00%
        2025          2.50%
  (B)  AT LEAST FORTY PERCENT OF THE ANNUAL OBLIGATION OF THE AUTHORITY,
AS ESTABLISHED IN THIS SUBDIVISION, SHALL BE MET THROUGH THE PROCUREMENT
OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  IN
ACCORDANCE WITH THE FOLLOWING REQUIREMENTS:
  (I)  AT  LEAST  TEN  PERCENT OF THE ANNUAL OBLIGATION OF THE AUTHORITY
SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED  WITH  RESIDEN-
TIAL DISTRIBUTED SOLAR ENERGY GENERATION;
  (II)  AT  LEAST  TEN  PERCENT  OF  SUCH ANNUAL OBLIGATION SHALL BE MET
THROUGH THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL  RETAIL  DISTRIB-
UTED SOLAR ENERGY GENERATION;
  (III)  AT  LEAST  TEN  PERCENT  OF SUCH ANNUAL OBLIGATION SHALL BE MET
THROUGH THE PROCUREMENT OF SRECS ASSOCIATED WITH COMMERCIAL  DISTRIBUTED
SOLAR ENERGY GENERATION; AND
  (IV)  AT  LEAST  AN ADDITIONAL TEN PERCENT OF THE ANNUAL OBLIGATION OF
THE AUTHORITY SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCIATED
WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF
ANY SIZE.
  (C)  NOT  MORE  THAN  SIXTY  PERCENT  OF  THE ANNUAL OBLIGATION OF THE
AUTHORITY MAY BE MET BY THE PROCUREMENT OF SRECS ASSOCIATED WITH  ENERGY
GENERATION  PRODUCED  BY  SOLAR  ENERGY  DEVICES  LOCATED OUTSIDE OF THE
AUTHORITY'S SERVICE TERRITORY.
  (D) FOR COMPLIANCE YEAR TWO THOUSAND TWELVE, AT LEAST TEN  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 SOLAR ENERGY DEVICES THAT CONSIST OF  AMERICAN-

S. 4178--A                         19

MADE  CONTENT;  FOR COMPLIANCE YEAR TWO THOUSAND THIRTEEN AT LEAST TWEN-
TY-FIVE PERCENT OF SUCH OBLIGATION SHALL BE SO MET; FOR COMPLIANCE  YEAR
TWO THOUSAND FOURTEEN AT LEAST FORTY PERCENT OF SUCH OBLIGATION SHALL BE
SO  MET; FOR COMPLIANCE YEAR TWO THOUSAND FIFTEEN AT LEAST SIXTY PERCENT
OF SUCH OBLIGATION SHALL BE SO MET; AND FOR EACH COMPLIANCE YEAR  THERE-
AFTER  AT  LEAST  EIGHTY PERCENT OF SUCH OBLIGATION SHALL BE MET THROUGH
THE PROCUREMENT OF SRECS  ASSOCIATED  WITH  SOLAR  ENERGY  DEVICES  THAT
CONSIST OF AMERICAN-MADE CONTENT.
  (E) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (F)  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.
  (G)  TRANSACTIONS  FOR  THE  PROCUREMENT  OF  SRECS BY RETAIL ELECTRIC
SUPPLIERS FROM QUALIFIED SOLAR ENERGY GENERATORS SHALL BE FOR  SRECS  IN
WHOLE UNITS.
  (H)  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 THE AUTHORITY FAILS TO MEET ITS OBLIGATIONS
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION, IT SHALL DISCHARGE  SUCH
OBLIGATIONS  BY  MAKING  A  SOLAR  ALTERNATIVE  COMPLIANCE PAYMENT IN AN
AMOUNT ESTABLISHED PURSUANT TO THIS SUBDIVISION.
  (B) FOR COMPLIANCE YEAR TWO THOUSAND TWELVE THE ANNUAL  SOLAR  COMPLI-
ANCE  PAYMENT  SHALL  BE  SIX HUNDRED DOLLARS PER MEGAWATT. THE NEW YORK
INDEPENDENT SYSTEM OPERATOR "NYISO" SHALL ESTABLISH NO LATER THAN FEBRU-
ARY FIRST, TWO THOUSAND THIRTEEN A SOLAR ALTERNATIVE COMPLIANCE  PAYMENT
SCHEDULE  THROUGH  THE  YEAR TWO THOUSAND TWENTY-FIVE AT LEVELS THAT ARE
DETERMINED TO BE SUFFICIENT TO STIMULATE THE DEVELOPMENT OF  NEW  QUALI-
FIED  SOLAR  ENERGY  GENERATION EQUIPMENT NECESSARY TO ACHIEVE THE OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  NO  LATER  THAN
FEBRUARY FIRST OF EACH YEAR THEREAFTER, NYISO SHALL ANNUALLY REVIEW SUCH
SCHEDULE  TO  ENSURE  THAT THE PAYMENTS ARE SET AT A LEVEL SUFFICIENT TO
STIMULATE SUCH DEVELOPMENT AND MAY ADOPT, AFTER APPROPRIATE  NOTICE  AND
OPPORTUNITY  FOR  PUBLIC COMMENT, AN INCREASE OR DECREASE IN ALTERNATIVE
COMPLIANCE  PAYMENTS  CONSISTENT  WITH  THE  FINDINGS  OF  SUCH  REVIEW,
PROVIDED  THAT  THE  AMOUNT PER MEGAWATT OF ANY COMPLIANCE PAYMENT FOR A
COMPLIANCE YEAR SHALL BE NOT LESS THAN NINETY PERCENT OF THE AMOUNT  PER
MEGAWATT  OF  COMPLIANCE  PAYMENTS FOR THE PREVIOUS COMPLIANCE YEAR, AND
PROVIDED FURTHER THAT NYISO SHALL NOT  REDUCE  LEVELS  OF  PAYMENTS  FOR
PREVIOUS  YEARS,  NOR  SHALL  NYISO  PROVIDE RELIEF IN ANY FORM FROM THE
OBLIGATION OF PAYMENT OF THE SOLAR ALTERNATIVE  COMPLIANCE  PAYMENTS  BY
THE AUTHORITY.
  (C)  FIFTY  PERCENT  OF  ALL MONIES COLLECTED THROUGH SUCH ALTERNATIVE
COMPLIANCE PAYMENTS SHALL BE MADE AVAILABLE BY NYISO  FOR  SOLAR  INITI-
ATIVES  TO  BE  UNDERTAKEN  BY  MUNICIPALITIES  IN  THE STATE, AND FIFTY
PERCENT OF SUCH MONIES SHALL BE DISTRIBUTED TO THE EMPIRE STATE DEVELOP-
MENT CORPORATION FOR SOLAR INDUSTRY  DEVELOPMENT  PROGRAMS  IN  COUNTIES
OUTSIDE THE CITY OF NEW YORK.
  4. NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, THE AUTHORI-
TY  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 SOLAR SOLICITATION PLAN FOR
THE  ACHIEVEMENT  OF  ITS  OBLIGATIONS  PERTAINING TO THE PROCUREMENT OF
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION  ESTABLISHED  IN

S. 4178--A                         20

SUBDIVISION  TWO OF THIS SECTION. SUCH PLAN SHALL INCLUDE DISTINCT TIME-
TABLES AND METHODOLOGIES FOR SOLICITING PROPOSALS FOR  SRECS  ASSOCIATED
WITH  THE CATEGORIES OF RESIDENTIAL, SMALL RETAIL, COMMERCIAL, AND OTHER
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF FULFILL-
ING ITS SOURCE DIVERSIFICATION REQUIREMENTS ESTABLISHED IN PARAGRAPH (B)
OF SUBDIVISION TWO OF THIS SECTION. THE AUTHORITY'S  SOLAR  SOLICITATION
PLAN  SHALL BE DESIGNED TO FOSTER A DIVERSITY OF SOLAR PROJECT SIZES AND
PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES.
  5. (A) IF THE AUTHORITY DETERMINES THAT ITS  ANNUAL  EXPENDITURES  FOR
THE  PROCUREMENT  OF SRECS, INCLUDING THE SAVINGS IN AVOIDED COSTS, MADE
FOR THE PURPOSES OF MEETING THE ANNUAL REQUIREMENT SET  FORTH  IN  PARA-
GRAPH  (A)  OF  SUBDIVISION  TWO  OF THIS SECTION FOR A COMPLIANCE YEAR,
EXCEEDS ONE 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 PERCENT OF ITS ANNUAL RETAIL ELECTRICITY  REVENUES  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  SUBDIVI-
SION  TWO  OF  THIS  SECTION  FOR  EACH SUBSEQUENT YEAR UNTIL THE ANNUAL
REQUIREMENT REACHES THE PERCENTAGE  SET  FORTH  IN  SUCH  PARAGRAPH  FOR
COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  6.  (A)  NO LATER THAN JULY FIRST, TWO THOUSAND THIRTEEN, 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 RESIDENTIAL, SMALL RETAIL, AND COMMERCIAL DISTRIBUTED SOLAR  ENERGY
GENERATION,  AND  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT OF ANY CAPACITY 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;
AND  (IV)  THE  ANNUAL RETAIL ELECTRICITY SALES REVENUE AND EXPENDITURES
MADE FOR THE PROCUREMENT OF SRECS FOR THE PURPOSE OF MEETING THE  APPLI-
CABLE  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

S. 4178--A                         21

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.

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