S T A T E   O F   N E W   Y O R K
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                                  2428

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2013
                               ___________

Introduced  by  M.  of  A. ENGLEBRIGHT, MILLMAN, COLTON, ORTIZ -- Multi-
  Sponsored by -- M. of A.  CAHILL, COOK, HOOPER, PERRY, SWEENEY,  WEIS-
  ENBERG -- read once and referred to the Committee on Energy

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

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

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05881-01-3

              

A. 2428                             2

  (D) "SOLID WASTE" SHALL HAVE THE SAME MEANING AS IS ASCRIBED  TO  SUCH
TERM PURSUANT TO SECTION 27-0501 OF THE ENVIRONMENTAL CONSERVATION LAW.
  (E)  "SUSTAINABLY  MANAGED  BIOMASS"  MEANS ANAEROBIC DIGESTION OF ANY
WASTE OR COMBUSTION OF ANY OF THE FOLLOWING SUBSTANCES:  CAPTURED  LAND-
FILL METHANE, SECONDARY WOOD WASTE (WHICH SHALL INCLUDE ONLY NON-TREATED
WOOD WASTE AND SHALL BE LIMITED TO SAWDUST, WOOD CHIPS AND WOOD SHAVINGS
PRODUCED  AS  BY-PRODUCTS IN THE MILLING, PROCESSING OR MANUFACTURING OF
WOOD PRODUCTS), WOODY AGRICULTURAL WASTE AND SUSTAINABLE BIO-CROPS. SUCH
TERM SHALL NOT INCLUDE COMBUSTION OR PYROLYSIS OF SOLID WASTES,  TIMBER,
FOREST  FLOOR  SWEEPINGS  AND  HERBACEOUS  CROP RESIDUES, WHETHER OR NOT
ENERGY IS RECOVERED THEREFROM.
  2. WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE  OF  THIS  SECTION,  THE
COMMISSION SHALL ADOPT CLEAN ENERGY RULES AND REGULATIONS REQUIRING EACH
LOAD  SERVING  ENTITY  IN  THIS  STATE TO ENSURE THAT, ON OR BEFORE JULY
FIRST, TWO THOUSAND FIFTEEN NO LESS THAN ONE-HALF OF ONE PERCENT OF  THE
ELECTRIC  ENERGY SUCH ENTITY HAS SUPPLIED TO EACH CUSTOMER IN THE PREVI-
OUS TWELVE MONTH PERIOD WAS GENERATED USING CLEAN  ENERGY  TECHNOLOGIES.
THE  COMMISSION  SHALL  INCREASE THE REQUIRED PERCENTAGE OF CLEAN ENERGY
REQUIRED BY ONE-HALF OF ONE PERCENT EACH YEAR ON JULY FIRST,  UNTIL  THE
AMOUNT  OF  CLEAN ENERGY SUPPLIED TO CUSTOMERS IN THIS STATE REACHES SIX
PERCENT, AND BY ONE PERCENT EACH YEAR THEREAFTER  UNTIL  THE  AMOUNT  OF
ENERGY  SUPPLIED  TO CUSTOMERS IN THIS STATE REACHES TEN PERCENT OR SUCH
LATER DATE AS THE COMMISSION SHALL DETERMINE, PROVIDED HOWEVER THAT  THE
COMMISSION  SHALL  NOT  DECREASE THE REQUIRED PERCENTAGE OF CLEAN ENERGY
REQUIRED AT ANY TIME.
  3. THE COMMISSION SHALL REVIEW ELECTRICITY PRODUCTS SOLD BY EACH  LOAD
SERVING  ENTITY  IN  THE  STATE  ON  A PERIODIC BASIS TO ENSURE THAT THE
REQUIREMENTS SET FORTH IN THIS SECTION ARE  MET.  THE  COMMISSION  SHALL
REVIEW  ITS  REGULATIONS  AND  REQUIREMENTS FOR ENVIRONMENTAL DISCLOSURE
LABELS TO ENSURE THAT INFORMATION PROVIDED TO CUSTOMERS CONCERNING CLEAN
ENERGY IS NOT CONFUSING AND TO CONSIDER WHETHER  IT  IS  APPROPRIATE  TO
REQUIRE  ALL  DISCLOSURE  LABELS  TO  INDICATE THE MINIMUM PERCENTAGE OF
CLEAN ENERGY REQUIRED PURSUANT TO THIS SECTION.
  4. A LOAD SERVING ENTITY MAY SATISFY THE REQUIREMENTS OF THIS  SECTION
BY  ENTERING  INTO  CONVERSION  TRANSACTIONS ESTABLISHED PURSUANT TO THE
COMMISSION'S ENVIRONMENTAL DISCLOSURE  PROGRAM  OR  SUCH  OTHER  TRADING
PROGRAM  THAT  THE COMMISSION MAY ESTABLISH. THE COMMISSION SHALL ESTAB-
LISH A COMPLIANCE PROTOCOL THAT PERMITS LOAD SERVING ENTITIES  TO  ENTER
INTO  CONVERSION  TRANSACTIONS  OR  PURCHASE  CREDITS  FOR  CLEAN ENERGY
SUPPLIED BY LOAD SERVING ENTITIES ON OR BEFORE THE JULY FIRST, TWO THOU-
SAND FIFTEEN COMPLIANCE DATE.  SUCH PROGRAM SHALL ALLOW BANKING OF CRED-
ITS FOR CLEAN ENERGY SUPPLIED IN EXCESS OF REQUIREMENTS FOR A PERIOD  OF
TWO  YEARS,  AND  MAY  ALLOW  COMPLIANCE TO BE DEMONSTRATED WITHIN THREE
MONTHS OF THE END OF THE CALENDAR YEAR IN ORDER TO ALLOW FOR  COMPLIANCE
VIA THE TRADING PROGRAM.
  5.  THE COMMISSION SHALL REQUIRE ANY LOAD SERVING ENTITY THAT FAILS TO
MEET ITS OBLIGATIONS UNDER THIS SECTION TO PAY A FINE TO THE  COMMISSION
IN  AN  AMOUNT  EQUAL  TO  THE  PRODUCT  OF TWO CENTS AND THE DIFFERENCE
BETWEEN KILOWATT-HOURS OF CLEAN ENERGY IT IS REQUIRED TO SUPPLY TO  EACH
CUSTOMER  IN  THE  PREVIOUS  TWELVE MONTH PERIOD AND THE AMOUNT OF CLEAN
ENERGY ACTUALLY SUPPLIED OR SECURED VIA PURCHASE OF CREDITS IN THE TRAD-
ING PROGRAM DESCRIBED IN SUBDIVISION FOUR OF THIS SECTION. THE  CONTRIB-
UTION  SHALL  BE  REDUCED  TO ONE AND ONE-HALF CENT FOUR YEARS AFTER THE
START OF THE CLEAN ENERGY REQUIREMENT AND FURTHER REDUCED  TO  ONE  CENT
AND  ONE-HALF  CENT  EIGHT AND TWELVE YEARS AFTER THE START OF THE CLEAN
ENERGY REQUIREMENT RESPECTIVELY.

A. 2428                             3

  S 2. Section 1005 of the public authorities law is amended by adding a
new subdivision 24 to read as follows:
  24.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, TO
COMPLY WITH THE PROVISIONS OF SECTION SIXTY-SIX-N OF THE PUBLIC  SERVICE
LAW.
  S 3. Section 1020-s of the public authorities law, as added by chapter
517  of  the  laws  of 1986, is amended by adding a new subdivision 3 to
read as follows:
  3. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE PROVISIONS
OF SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW SHALL BE APPLICABLE  TO
THE AUTHORITY.
  S 4. This act shall take effect immediately.