Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Jun 02, 2010 |
referred to energy |
Assembly Bill A11317
2009-2010 Legislative Session
Creates renewable energy credits for retail electric providers, the New York power authority and the Long Island power authority
download bill text pdfSponsored By
HEVESI
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
Steven Englebright
Ellen C. Jaffee
Joan Millman
Mike Spano
Sam Hoyt
Linda Rosenthal
Janele Hyer-Spencer
Dennis H. Gabryszak
Timothy P. Gordon
Richard Brodsky
Marc Alessi
Alan Maisel
Matthew Titone
Albert A. Stirpe
Frank Skartados
David Weprin
Ginny Fields
Michelle Schimel
Micah Kellner
Donna Lupardo
Rory Lancman
Alec Brook-Krasny
Michael G. Miller
Crystal Peoples-Stokes
Susan John
Michael Gianaris
Jeffrion Aubry
J. Gary Pretlow
Keith L.T. Wright
Grace Meng
Carl Heastie
William Boyland
Michael Benedetto
Barbara Lifton
Nelson Castro
Barbara Clark
Nettie Mayersohn
Ann-Margaret Carrozza
Philip Ramos
Marcos Crespo
Sandy Galef
Darryl Towns
Annette Robinson
Felix Ortiz
Peter Abbate
Hakeem Jeffries
Karim Camara
N. Nick Perry
George Latimer
Earlene Hooper
Naomi Rivera
Jose Rivera
Rhoda Jacobs
Michele Titus
William Scarborough
Peter Rivera
Catherine Nolan
William Magnarelli
Joan Christensen
Jonathan Bing
James F. Brennan
Nancy Calhoun
William Colton
Michael DenDekker
Jeffrey Dinowitz
Vanessa Gibson
Deborah Glick
Richard Gottfried
David Koon
Charles Lavine
Joseph Lentol
William Magee
Margaret Markey
David McDonough
John McEneny
Daniel O'Donnell
Audrey Pheffer
Robert Reilly
Robert Sweeney
Fred Thiele
Harvey Weisenberg
2009-A11317 (ACTIVE) - Details
- See Senate Version of this Bill:
- S8009
- Current Committee:
- Assembly Energy
- 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 Other Legislative Sessions:
-
2011-2012:
A6122, S4195
2013-2014: A1273
2015-2016: A975
2017-2018: A2955
2009-A11317 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 11317 I N A S S E M B L Y June 2, 2010 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Hevesi, Englebright) -- read once and referred to the Committee on Energy AN ACT to amend the public service law and the public authorities law, in relation to the creation of renewable energy credits for retail electric providers, the New York power authority and the Long Island power authority THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "New York renewable energy development and jobs act of 2010". S 2. The public service law is amended by adding a new section 66-m to read as follows: S 66-M. PROCUREMENT OF RENEWABLE ENERGY CREDITS. 1. AS USED IN THIS SECTION: (A) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS A PAYMENT OF A DEFINED DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE COMMISSION, THAT A RETAIL ELECTRIC SUPPLIER SHALL SUBMIT TO THE COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. (B) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU- SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES. (C) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEWA- BLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION COMPANY METER. (D) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE. (E) "NEW ENERGY TECHNOLOGIES" MEANS ALL METHODS USED TO PRODUCE, DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN COMMON COMMER- CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD17534-02-0
A. 11317 2 (F) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF FIFTEEN YEARS, FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS FROM AN OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM. (G) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING FACILITY THAT IS ALSO A: (I) RESIDENT OF NEW YORK STATE; (II) LIMITED LIABILITY COMPANY ORGANIZED UNDER THE NEW YORK STATE LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO ARE NEW YORK STATE RESIDENTS; OR (III) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW YORK STATE NOT-FOR-PROFIT LAW. (H) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC ENERGY MEASURE IN KILOWATT HOURS PRODUCED FROM A QUALIFIED RENEWABLE ENERGY SYSTEM. (I) "QUALIFIED RENEWABLE ENERGY SYSTEM" SHALL MEAN A DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEM OR TECHNOLOGY AS DETERMINED BY THE COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION THAT MAY RESULT IN THE COST EFFECTIVE PRODUCTION OF ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS SECTION, THEY SHALL INCLUDE: (I) WIND; (II) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS; (III) SOLAR THERMAL; (IV) GEOTHERMAL; (V) FUEL CELL TECHNOLOGY; (VI) HYDRO-KINETIC, INCLUDING APPROVED RIVER OR TIDAL GENERATION SYSTEMS; (VII) HYDROELECTRIC; (VIII) BIOMASS; (IX) ANAEROBIC DIGESTION; AND (X) LANDFILL GAS TO ENERGY SYSTEMS. (J) "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI- BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED RENEWABLE ENERGY GENERATION. (K) "RENEWABLE ENERGY RESOURCES" MEANS SOURCES WHICH ARE CAPABLE OF BEING CONTINUOUSLY RESTORED BY NATURAL OR OTHER MEANS OR ARE SO LARGE AS TO BE USEABLE FOR CENTURIES WITHOUT SIGNIFICANT DEPLETION AND INCLUDE BUT ARE NOT LIMITED TO SOLAR, WIND, PLANT AND FOREST PRODUCTS, WASTES, TIDAL, HYDRO, GEOTHERMAL, DEUTERIUM, AND HYDROGEN. (L) "RETAIL ELECTRIC SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM- ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR AN ENERGY SERVICE COMPANY APPROVED BY THE COMMISSION FOR SUCH PURPOSE. (M) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENER- ATION" MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS THAN ONE HUNDRED KILOWATTS IN SIZE. 2. (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM CONTRACT OR PAYMENT TO THE COMMISSION FOR COMPLIANCE, RECS TO MEET THE FOLLOWING PERCENTAGES OF SUCH SUPPLIER'S TOTAL ELECTRIC SALES IN EACH COMPLIANCE YEAR: COMPLIANCE ANNUAL YEAR REQUIREMENT A. 11317 3 2012 0.05% 2013 0.10% 2014 0.15% 2015 0.20% 2016 0.25% 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 TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT- ER THE COMMISSION SHALL UNDERTAKE A REVIEW CONCERNING THE RETAIL ELEC- TRIC SUPPLIER'S ABILITY TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL OBLIGATIONS THROUGH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IF THE COMMISSION CONCLUDES THAT A RETAIL ELECTRIC SUPPLIER CANNOT REASONABLY MEET THIS OBLIGATION, THE COMMISSION MAY ALLOW A RETAIL ELECTRIC SUPPLIER TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER SOURCES. (C) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING POWER PURCHASE AGREEMENTS HAVE EXPIRED. (D) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR OBLIGATIONS ESTABLISHED BY THE COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED QUALIFIED RENEWA- BLE ENERGY GENERATION. RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH THE REQUIREMENTS OF THE RENEWABLE PORTFOLIO STANDARD MAY USE A PORTION OF THE RECS PROCURED UNDER THIS ACT TOWARD THEIR RENEWABLE PORTFOLIO STANDARD REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED UNDER THIS ACT MAY BE APPLIED TOWARD A RETAIL ELECTRIC SUPPLIER'S RENEWABLE PORTFOLIO STANDARD REQUIREMENT. (E) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL ESTABLISH AN AUTOMATED REC TRACKING SYSTEM WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION. EACH QUALIFYING OWNER SHALL APPLY TO THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY TO CERTIFY THE AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION THEY WILL BE ABLE TO ACHIEVE AND TO RECEIVE A RENEWABLE ENERGY CREDIT CERTIFICATE. THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL CONSULT WITH THE NEW YORK INDEPENDENT SYSTEMS OPERATOR TO VERIFY THE AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION PRODUCED. ONCE THIS AMOUNT IS VERIFIED, THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL ISSUE THE QUALIFYING OWNER RECS PROPORTIONAL TO THE AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION PRODUCED. EACH REC CERTIFICATE SHALL HAVE AN ELECTRONIC IDENTIFICATION NUMBER TO ASSIST IN THE TRACKING. EACH ISSUANCE, SALE, AND TRADE OF A REC SHALL BE RECORDED IN THE TRACKING SYSTEM. (F) RECS 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. A. 11317 4 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 AN 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 RENEWABLE ENERGY GENER- ATION NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. (B) NO LATER THAN DECEMBER FIRST, TWO THOUSAND TEN, THE COMMISSION SHALL ESTABLISH AN ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE THROUGH THE YEAR TWO THOUSAND ELEVEN. THE COMMISSION SHALL SET ALTERNATIVE COMPLI- ANCE PAYMENT LEVELS NO LATER THAN JANUARY THIRTY-FIRST OF EACH YEAR THEREAFTER TO SERVE AS THE PAYMENT LEVEL FOR THE YEAR IN WHICH IT IS SET. THE COMMISSION SHALL REVIEW SUCH SCHEDULE TO ENSURE THAT THE PAYMENTS ARE SET AT A LEVEL TO STIMULATE THE DEVELOPMENT OF NEW QUALI- FIED RENEWABLE ENERGY GENERATION IN ACCORDANCE WITH PARAGRAPH (A) OF THIS SUBDIVISION. ONCE SUCH SCHEDULE IS ESTABLISHED, THE COMMISSION MAY ADOPT, AFTER APPROPRIATE NOTICE AND OPPORTUNITY FOR PUBLIC COMMENT, AN INCREASE IN ALTERNATIVE COMPLIANCE PAYMENTS, PROVIDED THAT THE COMMIS- SION SHALL NOT REDUCE PREVIOUSLY ESTABLISHED LEVELS OF PAYMENTS, NOR SHALL THE COMMISSION PROVIDE RELIEF FROM THE OBLIGATION OF PAYMENT OF THE 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 RENEWABLE PROGRAMS AND INITIATIVES TO BE ADMINISTERED AND FUNDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. 4. (A) NO LATER THAN DECEMBER FIRST, TWO THOUSAND TEN, THE COMMISSION SHALL ESTABLISH A TEMPLATE FOR POWER PURCHASE AGREEMENTS TO BE USED BY RETAIL ELECTRIC SUPPLIERS FOR THEIR PROCUREMENT OF RECS FOR THE PURPOSE OF FULFILLING THEIR OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. (B) EACH RETAIL ELECTRIC SUPPLIER SHALL, NOT LATER THAN JANUARY FIRST, TWO THOUSAND ELEVEN, SUBMIT FOR COMMISSION REVIEW AND APPROVAL A SOLIC- ITATION PLAN THAT SHALL INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICIT- ING PROPOSALS FOR RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENER- ATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF FULFILLING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. THE ELECTRIC DISTRIBUTION COMPANY'S SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVERSITY OF RENEWABLE PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES SUBJECT TO COST-EFFECTIVENESS CONSIDERATIONS. (C) EACH RETAIL ELECTRIC SUPPLIER SHALL EXECUTE ITS APPROVED SOLICITA- TION PLAN NO LATER THAN THIRTY DAYS AFTER COMMISSION APPROVAL AND SUBMIT FOR COMMISSION REVIEW AND APPROVAL ITS PREFERRED PROCUREMENT PLAN COMPRISED OF ANY PROPOSED POWER PURCHASE AGREEMENTS FOR RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE 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 PROCUREMENT PLAN WOULD RESULT IN THE ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENER- ATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION AT A. 11317 5 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 JANUARY FIRST, TWO THOUSAND ELEVEN, EACH RETAIL ELECTRIC SUPPLIER SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCURE- MENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. 5. EACH RETAIL ELECTRIC SUPPLIER 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. 6. NO LATER THAN JANUARY FIRST, TWO THOUSAND ELEVEN, THE COMMISSION SHALL ESTABLISH AN INCENTIVE PROGRAM FOR RETAIL ELECTRIC SUPPLIERS 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 OBLI- GATIONS AT LEAST COST AND AVOIDS LONG-TERM COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM; (B) PROVIDES ENHANCED ELECTRICITY RELIABILITY WITH- IN COMPANIES' SERVICE TERRITORIES; AND (C) MINIMIZES PEAK LOAD IN CONSTRAINED AREAS. 7. NO LATER THAN JANUARY FIRST, TWO THOUSAND ELEVEN, THE COMMISSION SHALL ESTABLISH THE TERMS AND CONDITIONS THAT SHALL BE APPLICABLE TO POWER PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC SUPPLIERS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWA- BLE ENERGY GENERATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' OBLIGATIONS PERTAINING TO RECS ASSOCIATED WITH SUCH GENERATION ESTAB- LISHED IN SUBDIVISION TWO OF THIS SECTION. SUCH TERMS AND CONDITIONS SHALL INCLUDE A TARIFF, AS ESTABLISHED BY THE COMMISSION, FOR THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION, TO BE PAID BY ELECTRIC DISTRIBUTION COMPANIES TO APPLICABLE OWNERS OF QUALIFIED RENEWABLE ENERGY TECHNOLOGIES. THE COMMISSION SHALL REVIEW SUCH TARIFFS EVERY TWO YEARS AND ADJUST AS NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. 8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY ENTERED INTO BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN BY RETAIL ELECTRIC SUPPLIERS THAT ARE NOT ELECTRIC DISTRIBUTION COMPANIES SHALL BE EXEMPT FROM THE OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. 9. EACH RETAIL ELECTRIC SUPPLIER SHALL BE PERMITTED TO RESELL OR OTHERWISE DISPOSE OF RECS AND ANY ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION PROCURED BY SUCH COMPANY 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 RECS AND ANY ASSOCIATED QUALI- FIED RENEWABLE ENERGY GENERATION UNDER POWER PURCHASE AGREEMENTS AGAINST THE PROCEEDS OF THE SALE OF RECS AND ANY ASSOCIATED QUALIFIED RENEWABLE 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. 10. (A) NO LATER THAN JANUARY FIRST, TWO THOUSAND THIRTEEN, AND NO LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND TWENTY-SIX, THE COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAK- ER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, THE MAJORITY LEADER OF THE SENATE, THE MINORITY A. 11317 6 LEADER OF THE SENATE, CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT- TEES, AND THE RANKING MINORITY MEMBERS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, THE CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEM- BLY, 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 RENEWABLE 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 AND THE RATE IMPACT TO END-USE CUSTOMERS; (II) THE NUMBER OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION THAT WERE RETIRED FOR THE PURPOSES OF MEETING THE SUPPLIER'S OBLIGATIONS ESTAB- LISHED IN SUBDIVISION TWO OF THIS SECTION; AND (III) THE AMOUNT, IF ANY, OF ALTERNATIVE COMPLIANCE PAYMENTS MADE. (D) SUCH REPORT SHALL ALSO INCLUDE, FOR EACH SMALL RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY: (I) THE NUMBER OF RECS EACH ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION AND DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (II) THE NUMBER OF SUCH RECS PROCURED THROUGH POWER PURCHASE AGREEMENTS AND THE ELECTRIC DISTRIBUTION COMPANY'S OWNERSHIP OF QUALIFIED RENEWABLE ENERGY GENERATION, RESPEC- TIVELY; AND (III) THE AMOUNT PAID TO QUALIFIED RENEWABLE ENERGY GENERA- TORS THROUGH TARIFFS ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION FOR RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE 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 PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (I) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS A PAYMENT OF A DEFINED DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE PUBLIC SERVICE COMMISSION, THAT THE AUTHORITY SHALL SUBMIT TO THE PUBLIC SERVICE COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION. (II) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU- SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES. (III) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEW- ABLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION COMPANY METER. (IV) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE. (V) "NEW ENERGY TECHNOLOGIES" MEANS ALL METHODS USED TO PRODUCE, DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN COMMON COMMER- CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE. A. 11317 7 (VI) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF FIFTEEN YEARS, FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS FROM AN OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM. (VII) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING FACILITY THAT IS ALSO A: (A) RESIDENT OF NEW YORK STATE; (B) LIMITED LIABILITY COMPANY ORGANIZED UNDER THE NEW YORK STATE LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO ARE NEW YORK STATE RESIDENTS; OR (C) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW YORK STATE NOT-FOR-PROFIT LAW. (VIII) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC ENERGY MEASURE IN KILOWATT HOURS PRODUCED FROM A QUALIFIED RENEWABLE ENERGY SYSTEM. (IX) "QUALIFIED RENEWABLE ENERGY SYSTEM" SHALL MEAN A DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEM OR TECHNOLOGY AS DETERMINED BY THE PUBLIC SERVICE COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH THAT MAY RESULT IN THE COST EFFEC- TIVE PRODUCTION OF ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS SUBDIVISION, THEY SHALL INCLUDE: (A) WIND; (B) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS; (C) SOLAR THERMAL; (D) GEOTHERMAL; (E) FUEL CELL TECHNOLOGY; (F) HYDRO-KINETIC, INCLUDING APPROVED RIVER OR TIDAL GENERATION SYSTEMS; (G) HYDROELECTRIC; (H) BIOMASS; (I) ANAEROBIC DIGESTION; AND (J) LANDFILL GAS TO ENERGY SYSTEMS. (X) "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI- BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED RENEWABLE ENERGY GENERATION. (XI) "RENEWABLE ENERGY RESOURCES" MEANS SOURCES WHICH ARE CAPABLE OF BEING CONTINUOUSLY RESTORED BY NATURAL OR OTHER MEANS OR ARE SO LARGE AS TO BE USEABLE FOR CENTURIES WITHOUT SIGNIFICANT DEPLETION AND INCLUDE BUT ARE NOT LIMITED TO SOLAR, WIND, PLANT AND FOREST PRODUCTS, WASTES, TIDAL, HYDRO, GEOTHERMAL, DEUTERIUM, AND HYDROGEN. (XII) "RETAIL ELECTRIC SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM- ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR AN ENERGY SERVICE COMPANY APPROVED BY THE PUBLIC SERVICE COMMISSION FOR SUCH PURPOSE. (XIII) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENERATION" MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS THAN ONE HUNDRED KILOWATTS IN SIZE. B. (I) THE AUTHORITY SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM CONTRACTS OF A MINIMUM OF FIFTEEN YEARS OR PAYMENT TO THE COMMISSION FOR COMPLIANCE, RECS ASSOCIATED WITH GIGAWATT-HOURS OF QUALIFIED RENEWABLE ENERGY GENERATION IN ACCORDANCE WITH THE FOLLOWING SCHEDULE: COMPLIANCE ANNUAL YEAR REQUIREMENT 2012 0.25% A. 11317 8 2013 0.40% 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% (II) AT LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT- ER, THE INDEPENDENT AUTHORITY BUDGET OFFICE, IN CONSULTATION WITH THE COMMISSION, SHALL UNDERTAKE A REVIEW CONCERNING THE AUTHORITIES' ABILITY TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL OBLIGATIONS THROUGH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IF THE INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE COMMIS- SION, CONCLUDES THAT THE AUTHORITY CANNOT REASONABLY MEET THIS OBLI- GATION, THE INDEPENDENT AUTHORITIES BUDGET OFFICE MAY ALLOW THE AUTHORI- TY TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER SOURCES. (III) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALI- FIED RENEWABLE ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING POWER PURCHASE AGREEMENTS HAVE EXPIRED. (IV) RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH THE REQUIREMENTS OF THE RENEWABLE PORTFOLIO STANDARD MAY USE A PORTION OF THE RECS PROCURED UNDER THIS ACT TOWARD THEIR RENEWABLE PORT- FOLIO STANDARD REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED UNDER THIS ACT MAY BE APPLIED TOWARD A RETAIL ELECTRIC SUPPLIER'S RENEW- ABLE PORTFOLIO STANDARD REQUIREMENT. (V) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS PARA- GRAPH THROUGH THE PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION. (VI) THE AUTHORITY SHALL TRACK RECS THROUGH THE AUTOMATED REC TRACKING SYSTEM ESTABLISHED PURSUANT TO PARAGRAPH (E) OF SUBDIVISION TWO OF SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW. (VII) RECS 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. (VIII) 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 AN 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 RENEWABLE ENERGY GENER- ATION NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. C. (I) NO LATER THAN DECEMBER FIRST, TWO THOUSAND ELEVEN, THE AUTHORI- TY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPO- RARY PRESIDENT OF THE SENATE, THE MAJORITY LEADER OF THE SENATE, THE A. 11317 9 MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMU- NICATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMIT- TEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A SOLICITATION PLAN THAT SHALL INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR RECS ASSOCIATED WITH QUALI- FIED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF FULFILL- ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION. (II) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN NO LATER THAN THIRTY DAYS AND SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEM- BLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMU- NICATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMIT- TEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, ITS PROCUREMENT PLAN COMPRISED OF ANY POWER PURCHASE AGREEMENTS FOR RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION. THE INDEPENDENT AUTHORITIES BUDGET OFFICE SHALL REVIEW SUCH PLAN TO ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND TRANSPARENT PROCESS AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MINORITY LEADER OF THE SENATE, MAJOR- ITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNI- CATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY REGARDING THE RESULTS OF SUCH ASSESSMENT. (III) NO LATER THAN JANUARY FIRST, TWO THOUSAND ELEVEN, THE AUTHORITY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT- TEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI- CATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE AND CHAIR OF THE RENEW- ABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCURE- MENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENERATION ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVI- SION. (D) (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND THIRTEEN, AND NO LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND TWENTY-SIX, THE AUTHORITY SHALL REPORT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, THE MINOR- ITY LEADER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, THE MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOM- A. 11317 10 MITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A REPORT REGARD- ING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION. (II) 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: (A) THE NUMBER OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION RETIRED FOR THE PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION; (B) THE NUMBER OF SUCH RECS EACH ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION AND RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (C) THE NUMBER OF SUCH RECS PROCURED THROUGH POWER PURCHASE AGREEMENTS AND THE AUTHORITY'S OWNERSHIP OF QUAL- IFIED RENEWABLE ENERGY GENERATION, RESPECTIVELY; AND (D) THE AMOUNT PAID TO QUALIFIED RENEWABLE ENERGY GENERATORS THROUGH TARIFFS FOR RECS ASSO- CIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION. 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 RENEWABLE ENERGY CREDITS. 1. AS USED IN THIS SECTION: (A) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS A PAYMENT OF A DEFINED DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE PUBLIC SERVICE COMMISSION, THAT THE AUTHORITY SHALL SUBMIT TO THE PUBLIC SERVICE COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. (B) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU- SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES. (C) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEWA- BLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION COMPANY METER. (D) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE. (E) "NEW ENERGY TECHNOLOGIES" MEANS ALL METHODS USED TO PRODUCE, DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN COMMON COMMER- CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE. (F) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF FIFTEEN YEARS, FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS FROM AN OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM. (G) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING FACILITY THAT IS ALSO A: (I) RESIDENT OF NEW YORK STATE; (II) LIMITED LIABILITY COMPANY ORGANIZED UNDER THE NEW YORK STATE LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO ARE NEW YORK STATE RESIDENTS; OR (III) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW YORK STATE NOT-FOR-PROFIT LAW. (H) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC ENERGY MEASURE IN KILOWATT HOURS PRODUCED FROM A QUALIFIED RENEWABLE ENERGY SYSTEM. A. 11317 11 (I) "QUALIFIED RENEWABLE ENERGY SYSTEM" SHALL MEAN A DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEM OR TECHNOLOGY AS DETERMINED BY THE PUBLIC SERVICE COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION THAT MAY RESULT IN THE COST EFFECTIVE PRODUCTION OF ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS SECTION, THEY SHALL INCLUDE: (I) WIND; (II) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS; (III) SOLAR THERMAL; (IV) GEOTHERMAL; (V) FUEL CELL TECHNOLOGY; (VI) HYDRO-KINETIC, INCLUDING APPROVED RIVER OR TIDAL GENERATION SYSTEMS; (VII) HYDROELECTRIC; (VIII) BIOMASS; (IX) ANAEROBIC DIGESTION; AND (X) LANDFILL GAS TO ENERGY SYSTEMS. (J) "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI- BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED RENEWABLE ENERGY GENERATION. (K) "RENEWABLE ENERGY RESOURCES" MEANS SOURCES WHICH ARE CAPABLE OF BEING CONTINUOUSLY RESTORED BY NATURAL OR OTHER MEANS OR ARE SO LARGE AS TO BE USEABLE FOR CENTURIES WITHOUT SIGNIFICANT DEPLETION AND INCLUDE BUT ARE NOT LIMITED TO SOLAR, WIND, PLANT AND FOREST PRODUCTS, WASTES, TIDAL, HYDRO, GEOTHERMAL, DEUTERIUM, AND HYDROGEN. (L) "RETAIL ELECTRIC SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM- ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR AN ENERGY SERVICE COMPANY APPROVED BY THE PUBLIC SERVICE COMMISSION FOR SUCH PURPOSE. (M) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENER- ATION" MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS THAN ONE HUNDRED KILOWATTS IN SIZE. 2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM CONTRACTS OF A MINIMUM OF FIFTEEN YEARS OR PAYMENT TO THE PUBLIC SERVICE COMMISSION FOR COMPLIANCE, RECS ASSOCIATED WITH GIGAWATT-HOURS OF QUALI- FIED RENEWABLE ENERGY GENERATION IN ACCORDANCE WITH THE FOLLOWING SCHED- ULE: COMPLIANCE ANNUAL YEAR REQUIREMENT 2012 0.25% 2013 0.40% 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% A. 11317 12 2024 3.50% 2025 4.50% (B) AT LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT- ER, THE INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE COMMISSION, SHALL UNDERTAKE A REVIEW CONCERNING THE AUTHORITIES ABILITY TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL OBLIGATIONS THROUGH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION. IF THE INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE COMMIS- SION, CONCLUDES THAT THE AUTHORITY CANNOT REASONABLY MEET THIS OBLI- GATION, THE INDEPENDENT AUTHORITIES BUDGET OFFICE MAY ALLOW THE AUTHORI- TY TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER SOURCES. (C) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING POWER PURCHASE AGREEMENTS HAVE EXPIRED. (D) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS SUBDI- VISION THROUGH THE PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION. (E) RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH THE REQUIREMENTS OF THE RENEWABLE PORTFOLIO STANDARD MAY USE A PORTION OF THE RECS PROCURED UNDER THIS ACT TOWARD THEIR RENEWABLE PORTFOLIO STANDARD REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED UNDER THIS ACT MAY BE APPLIED TOWARD A RETAIL ELECTRIC SUPPLIER'S RENEWABLE PORTFOLIO STANDARD REQUIREMENT. (F) THE AUTHORITY SHALL TRACK RECS THROUGH THE AUTOMATED REC TRACKING SYSTEM ESTABLISHED PURSUANT TO PARAGRAPH (E) OF SUBDIVISION TWO OF SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW. (G) RECS 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. (H) 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 AN 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 RENEWABLE ENERGY GENER- ATION NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN THIS SUBDIVI- SION. (I) (I) NO LATER THAN DECEMBER FIRST, TWO THOUSAND ELEVEN, THE AUTHOR- ITY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT- TEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI- CATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A SOLICITATION PLAN THAT SHALL INCLUDE A TIMETABLE AND METHOD- OLOGY FOR SOLICITING PROPOSALS FOR RECS ASSOCIATED WITH QUALIFIED RENEW- ABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED CUSTOMER-SID- ED RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF FULFILLING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH (B) OF THIS SUBDIVISION. A. 11317 13 (II) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, ITS PROCUREMENT PLAN COMPRISED OF ANY POWER PURCHASE AGREEMENTS FOR RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENER- ATION. THE INDEPENDENT AUTHORITIES BUDGET OFFICE SHALL REVIEW SUCH PLAN TO ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND TRANSPARENT PROCESS AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, THE MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY REGARDING THE RESULTS OF SUCH ASSESSMENT. (III) NO LATER THAN JANUARY FIRST, TWO THOUSAND ELEVEN, THE AUTHORITY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT- TEE, RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWA- BLE ENERGY GENERATION ESTABLISHED IN PARAGRAPH (B) OF THIS SUBDIVISION. (J) (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND THIRTEEN, AND NO LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND TWENTY-SIX, THE AUTHORITY SHALL REPORT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMIT- TEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A REPORT REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH (B) OF THIS SUBDIVISION. (II) 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: (A) THE NUMBER OF RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION RETIRED FOR THE PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH (B) OF THIS SUBDIVISION; (B) THE NUMBER OF SUCH RECS EACH ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION AND RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (C) THE NUMBER OF SUCH RECS PROCURED A. 11317 14 THROUGH POWER PURCHASE AGREEMENTS AND THE AUTHORITY'S OWNERSHIP OF QUAL- IFIED RENEWABLE ENERGY GENERATION, RESPECTIVELY; AND (D) THE AMOUNT PAID TO QUALIFIED RENEWABLE ENERGY GENERATORS THROUGH TARIFFS FOR RECS ASSO- CIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION. 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 commission- er of the public service commission notifies the legislative bill draft- ing commission of the occurrence of the implementation of a substantive- ly similar federal program.
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