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

                                  2159

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by  M. of A. ENGLEBRIGHT, HOYT, COOK, SCARBOROUGH, DINOWITZ,
  LENTOL, NOLAN, AUBRY, GORDON -- Multi-Sponsored by -- M. of  A.  BREN-
  NAN,  CAHILL, CHRISTENSEN, CLARK, COLTON, CYMBROWITZ, DESTITO, ESPAIL-
  LAT, GALEF,  GOTTFRIED,  GREENE,  HOOPER,  JACOBS,  V. LOPEZ,  MARKEY,
  MAYERSOHN,  McENENY,  MILLMAN, ORTIZ, PERRY, PHEFFER, SWEENEY, WEISEN-
  BERG, WEPRIN, WRIGHT -- 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 establishing the clean energy fund  to  improve  energy
  efficiency  and  provide for the development of clean energy technolo-
  gies; to amend the public service law, in relation  to  promoting  the
  distribution  of  clean  energy  resources, requiring the use of clean
  energy technologies by electric corporations, and net energy  metering
  for  wind electric generating facilities; to amend the public authori-
  ties law, in relation to requiring the power authority of the state of
  New York and the Long Island power authority to establish clean energy
  initiatives; and to repeal certain provisions of  the  public  service
  law relating to non-residential customer-generators

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

  Section 1. Legislative findings. The legislature  finds  and  declares
that  job  creation;  economic  development;  safe  and  reliable energy
services at an affordable price; reduction of  energy  cost  burden  for
low-income households, small businesses and farms; and the protection of
the  health  of  the  state's citizens and its environment are necessary
components of a sound energy policy. The legislature further finds  that
the  creation  and  preservation  of  jobs  in New York, lowering energy
bills, protecting public health, and improving  the  conditions  of  our
parks  and rivers can all be enhanced through policies and programs that
encourage energy efficiency and clean electricity generation.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05149-01-9

              

A. 2159                             2

  S 2. The section heading and subdivisions 1 and 2 of section  66-1  of
the  public  service law, the section heading, paragraphs (a) and (f) of
subdivision 1 and subdivision 2 as amended and paragraph (c-1) of subdi-
vision 1 as added by chapter 483 of the laws of 2008, and subdivision  1
as  amended  by  chapter 721 of the laws of 2006, are amended to read as
follows:
  Net energy metering for [residential, farm  service  and  non-residen-
tial]  wind electric generating systems. 1. Definitions. As used in this
section, the following terms shall have the following meanings:
  (a) "Customer-generator" means a residential  customer,  farm  service
customer  [or  non-residential]  AND/OR  SMALL  COMMERCIAL OR INDUSTRIAL
customer of an electric corporation, who owns or operates wind  electric
generating equipment LOCATED AND USED AT THE CUSTOMER'S PREMISES.
  (b)  "Residential  customer-generator"  means  a  customer who owns or
operates wind electric generating equipment located and used at  his  or
her primary residence.
  (c)  "Farm service customer-generator" means a customer of an electric
corporation who owns and operates  wind  electric  generating  equipment
located  and  used on land used in agricultural production as defined in
subdivision four of section three hundred one  of  the  agriculture  and
markets  law,  and  which is also the location of the customer's primary
residence.
  [(c-1) "Non-residential customer-generator" means  a  customer  of  an
electric  corporation  which  owns  or operates wind electric generating
equipment located and used at its premises.]
  (d) "Net energy meter" means a meter that measures the reverse flow of
electricity to register the difference between the electricity  supplied
by an electric corporation to the customer-generator and the electricity
provided to the corporation by that customer-generator.
  (e) "Net energy metering" means the use of a net energy meter to meas-
ure,  during  the billing period applicable to a customer-generator, the
net amount  of  electricity  supplied  by  an  electric  corporation  or
provided to the corporation by a customer-generator.
  (f) "Wind electric generating equipment" means one or more wind gener-
ators  with a combined rated capacity of not more than twenty-five kilo-
watts for a residential  customer-generator,  and  not  more  than  five
hundred  kilowatts  for  a  farm service customer-generator, [and in the
case of a non-residential customer-generator, the lesser of two thousand
kilowatts or the customer-generator's peak load  as  measured  over  the
prior  twelve month period, or in the case that such twelve month period
of measurement is not available, then as determined  by  the  commission
based  on  its analysis of comparable facilities;] that is manufactured,
installed, and operated in accordance  with  applicable  government  and
industry  standards,  that is connected to the electric system and oper-
ated  in  parallel  with  an  electric  corporation's  transmission  and
distribution  facilities,  and  that  is operated in compliance with any
standards and requirements established under this section.
  (G) "SMALL COMMERCIAL  OR  INDUSTRIAL  CUSTOMER-GENERATOR"  MEANS  ANY
BUSINESS WHICH EMPLOYS UP TO ONE HUNDRED EMPLOYEES.
  2.  Interconnection  and  net energy metering. An electric corporation
shall provide for the interconnection and net energy  metering  of  wind
electric generating equipment owned or operated by a customer-generator;
provided  that  the customer-generator enters into a net energy metering
contract with the corporation or complies  with  the  corporation's  net
energy  metering  schedule  and complies with standards and requirements
established under this section, AND PROVIDED FURTHER THAT THE  INTERCON-

A. 2159                             3

NECTION OF WIND ELECTRIC GENERATING EQUIPMENT ON PARCELS OF LAND SMALLER
THAN  FIVE ACRES SHALL BE CONTINGENT UPON A LOCAL ORDINANCE THAT SPECIF-
ICALLY ADDRESSES THE SITING OF WIND ELECTRIC GENERATING EQUIPMENT, OR  A
VARIANCE,  OR  OTHER  ACTION BY A LOCAL ZONING AUTHORITY.  The customer-
generator shall be responsible for payment of one-half of the expense of
such interconnection for wind electric generating equipment with a rated
capacity of more than twenty-five kilowatts.
  S 3. Subparagraph (ii) of paragraph (a) of subdivision  3  of  section
66-l of the public service law is REPEALED.
  S  4.  Subparagraph (iii) of paragraph (c) of subdivision 3 of section
66-l of the public service law is REPEALED.
  S 5. Subparagraph (ii) of paragraph (c) of subdivision  3  of  section
66-l of the public service law, as amended by chapter 483 of the laws of
2008, is amended to read as follows:
  (ii) in the case of a customer-generator with a combined rated capaci-
ty  of  not  more  than  five hundred kilowatts, up to a maximum of five
thousand dollars[; and].
  S 6. The public service law is amended by adding  three  new  sections
66-m, 66-n and 66-o to read as follows:
  S 66-M. CLEAN ENERGY FUND. 1. FOR PURPOSES OF THIS SECTION:
  (A) "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.
  (B)  "ELECTRIC DISTRIBUTION COMPANY" MEANS AN ELECTRIC CORPORATION OR,
IF APPLICABLE, AN AFFILIATE OF AN ELECTRIC  CORPORATION,  OR  A  MUNICI-
PALITY ENGAGED IN THE DISTRIBUTION OF ELECTRICITY DIRECTLY TO CONSUMERS.
  (C)  "ENERGY  EFFICIENCY"  MEANS MEASURES THAT HELP CONSUMERS OF ELEC-
TRICITY USE LESS ENERGY (ELECTRICITY, NATURAL GAS  OR  OTHER  FUELS)  AT
THEIR PREMISES WHILE OBTAINING THE SAME OR MORE BENEFITS FROM SUCH ENER-
GY USE.
  (D) "NYSERDA" MEANS THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY  AS  DESIGNATED PURSUANT TO SECTION EIGHTEEN HUNDRED FIFTY-TWO
OF THE PUBLIC AUTHORITIES LAW.
  (E) "SOLID WASTE" SHALL HAVE THE SAME MEANING AS IS ASCRIBED  TO  SUCH
TERM PURSUANT TO SECTION 27-0501 OF THE ENVIRONMENTAL CONSERVATION LAW.
  (F)  "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.

A. 2159                             4

  2. (A) ON AND AFTER JULY FIRST, TWO THOUSAND TEN, THE COMMISSION SHALL
CONTINUE THE TOTAL LEVEL OF INVESTMENT IN ENERGY  EFFICIENCY  AND  CLEAN
ENERGY  TECHNOLOGIES  REQUIRED  OF  ELECTRIC  DISTRIBUTION  COMPANIES IN
CALENDAR YEAR TWO THOUSAND NINE. THE COMMISSION IS FURTHER DIRECTED,  AS
A GOAL, TO INCREASE SUCH INVESTMENTS OVER THE NEXT FIVE YEARS UNTIL SUCH
INVESTMENTS  REACH  THE  TOTAL  LEVELS  HAVING BEEN INVESTED BY ELECTRIC
DISTRIBUTION COMPANIES IN THE CALENDAR YEAR TWO THOUSAND TWO.   MERGERS,
SALES  OF  ASSETS,  REFINANCING OF DEBT AND OTHER POTENTIAL COST SAVINGS
SHOULD BE UTILIZED TO ACHIEVE THIS GOAL. THE  COMMISSION,  IN  ACHIEVING
THIS  GOAL,  SHALL CAREFULLY TAKE INTO ACCOUNT THE BENEFITS THAT INVEST-
MENTS  IN  ENERGY  EFFICIENCY  AND  CLEAN  ENERGY  TECHNOLOGIES  PROVIDE
CONSISTENT WITH THE PROVISIONS OF SUBDIVISION FOUR OF THIS SECTION.
  (B) THE TOTAL LEVEL OF INVESTMENT ESTABLISHED PURSUANT TO THIS SECTION
SHALL  NOT  BE  REDUCED  PRIOR  TO  JUNE THIRTIETH, TWO THOUSAND TWENTY.
AFTER SUCH DATE, THE COMMISSION SHALL MAKE A DETERMINATION AS TO WHETHER
THE CLEAN ENERGY INVESTMENTS SHOULD BE INCREASED, DECREASED OR  KEPT  AT
THE  SAME  LEVEL.    IN  MAKING THIS DETERMINATION, THE COMMISSION SHALL
FULLY CONSIDER WHETHER THE OBJECTIVES OF LOWERING ENERGY BILLS, INCREAS-
ING ECONOMIC DEVELOPMENT  AND  IMPROVING  THE  ENVIRONMENT  CONTINUE  TO
JUSTIFY  THE  CLEAN ENERGY INVESTMENTS. THE COMMISSION SHALL PROVIDE ALL
INTERESTED PARTIES AN OPPORTUNITY TO REVIEW AND COMMENT ON ANY  PROPOSED
ADJUSTMENT PURSUANT TO THE STATE ADMINISTRATIVE PROCEDURE ACT.
  3.  MONIES  COLLECTED  BY  EACH  ELECTRIC DISTRIBUTION COMPANY FOR THE
PURPOSE OF SUCH INVESTMENTS SHALL BE TRANSFERRED, ON A MONTHLY BASIS, TO
THE CLEAN ENERGY FUND ESTABLISHED AND ADMINISTERED BY THE NYSERDA PURSU-
ANT TO SECTION EIGHTEEN HUNDRED FIFTY-FOUR-E OF THE  PUBLIC  AUTHORITIES
LAW.
  4.  WITHIN  TWELVE  MONTHS  OF THE EFFECTIVE DATE OF THIS SECTION, THE
COMMISSION SHALL ISSUE REGULATIONS  GRANTING  A  CREDIT  TO  ANY  RETAIL
CUSTOMER  ACCOUNT WITH PEAK DEMAND GREATER THAN TEN MEGAWATTS DURING THE
PRIOR YEAR. THE AMOUNT OF  THE  CREDIT  SHALL  BE  BASED  ON  QUALIFYING
INVESTMENTS  MADE  BY THE CUSTOMER AFTER JULY FIRST, TWO THOUSAND TEN IN
ENERGY EFFICIENCY AND CLEAN ENERGY TECHNOLOGIES AND SHALL  BE  EQUAL  TO
FIFTY  PERCENT OF THE AMOUNT OF THE RETAIL CUSTOMER'S QUALIFYING INVEST-
MENTS IN ENERGY EFFICIENCY MEASURES UNDERTAKEN AND EIGHTY PERCENT OF THE
AMOUNT OF THE RETAIL CUSTOMER'S QUALIFYING INVESTMENTS IN  CLEAN  ENERGY
TECHNOLOGIES  AND  FOR  WHICH THE CUSTOMER HAS PREVIOUSLY NOT RECEIVED A
FULL CREDIT. THE TOTAL AMOUNT OF CREDIT IN ANY ONE YEAR SHALL NOT EXCEED
EIGHTY PERCENT OF THE TOTAL CLEAN ENERGY CONTRIBUTION  REQUIRED  OF  THE
CUSTOMER IN THAT YEAR.
  S 66-N. CLEAN DISTRIBUTED ENERGY RESOURCES.  IT SHALL BE THE POLICY OF
THIS  STATE  TO  PROMOTE  THE  INSTALLATION  OF CLEAN DISTRIBUTED ENERGY
RESOURCES.
  1. FOR THE PURPOSES OF THIS SECTION:
  (A) "CLEAN DISTRIBUTED ENERGY RESOURCES" MEANS ENERGY EFFICIENCY MEAS-
URES AND CLEAN ENERGY TECHNOLOGIES INSTALLED AT CUSTOMER PREMISES.
  (B) "CLEAN ENERGY TECHNOLOGIES" SHALL HAVE  THE  SAME  DEFINITION  SET
FORTH IN SECTION SIXTY-SIX-M OF THIS ARTICLE.
  (C)  "EXIT FEES" MEANS A LUMP SUM CHARGE, A PER KILOWATT CHARGE OR PER
KILOWATT-HOUR CHARGE ASSOCIATED WITH REDUCED  ELECTRICITY  PURCHASES  OR
ELECTRICITY  GENERATED DUE TO CONSUMER UTILIZATION OF CLEAN ENERGY TECH-
NOLOGIES.
  2. ALL CUSTOMERS RECEIVING  DISTRIBUTION  SERVICES  FROM  AN  ELECTRIC
CORPORATION  IN  THE STATE SHALL BE ALLOWED TO INTERCONNECT CLEAN ENERGY
TECHNOLOGIES INSTALLED AT THEIR PREMISES TO  THE  ELECTRIC  DISTRIBUTION
SYSTEM.  WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE

A. 2159                             5

COMMISSION  SHALL  ISSUE  REGULATIONS  IMPLEMENTING  SUCH   REQUIREMENT,
INCLUDING  ADOPTION OF TECHNICAL INTERCONNECTION STANDARDS AND INTERCON-
NECTION CONTRACTS WHICH SHALL:
  (A)  PROVIDE  FOR  EXPEDITIOUS  INTERCONNECTION BY THE ELECTRIC CORPO-
RATION;
  (B) ALLOW A MAXIMUM INTERCONNECT CHARGE  OF  THIRTY-FIVE  DOLLARS  PER
KILOWATT FOR EACH KILOWATT GREATER THAN TEN KILOWATTS FOR SYSTEMS GREAT-
ER  THAN TEN KILOWATTS AND LESS THAN ONE MEGAWATT IN RATED CAPACITY AND,
FOR SYSTEMS THAT ARE TEN KILOWATTS OR  LESS,  PROHIBIT  ELECTRIC  CORPO-
RATIONS  FROM IMPOSING ANY CHARGE OR REQUIRING ANY PAYMENT FOR INTERCON-
NECTION;
  (C) PROVIDE FOR UNIFORM STATEWIDE TECHNICAL  INTERCONNECTION  REQUIRE-
MENTS TO ENSURE SAFETY AND RELIABILITY THAT ARE CONSISTENT WITH NATIONAL
STANDARDS  SUCH  AS  THOSE  PROMULGATED BY RECOGNIZED NATIONAL ORGANIZA-
TIONS, INCLUDING THE INSTITUTE FOR ELECTRICAL AND  ELECTRONIC  ENGINEERS
AND  THE NATIONAL ELECTRIC CODE, EXCEPT WHERE THE COMMISSION DETERMINES,
AFTER A PUBLIC HEARING, THAT SPECIFIC REGIONAL OR STATEWIDE  SAFETY  AND
RELIABILITY  CONDITIONS  JUSTIFY  TEMPORARY  DEVIATION FROM THE NATIONAL
STANDARDS UNTIL CONSISTENCY CAN BE ACHIEVED; AND
  (D) ENSURE THAT INTERCONNECTION CONTRACTS ARE CONSUMER FRIENDLY, BRIEF
AND FOR SYSTEMS UNDER ONE HUNDRED KILOWATTS; INCLUDE NO  INDEMNIFICATION
REQUIREMENTS;  AND REQUIRE NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS OF
HOMEOWNERS INSURANCE COVERAGE FOR RESIDENTIAL  CUSTOMERS  AND  NOT  MORE
THAN  FIVE HUNDRED THOUSAND DOLLARS OF INSURANCE COVERAGE FOR COMMERCIAL
CUSTOMERS.
  3. WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE  OF  THIS  SECTION,  THE
COMMISSION  SHALL  ISSUE  REGULATIONS  FOR  EACH  ELECTRIC CORPORATION'S
DISTRIBUTION SYSTEM THAT MINIMIZE THE LONG-TERM COSTS OF PROVIDING RELI-
ABLE DISTRIBUTION SERVICE, REMOVE BARRIERS TO COST-EFFECTIVE INVESTMENTS
IN CLEAN DISTRIBUTED ENERGY RESOURCES AS  ALTERNATIVES  TO  DISTRIBUTION
INVESTMENTS, AND REMOVE THE LINKAGE BETWEEN THE TOTAL ENERGY DISTRIBUTED
AND  THE  RECOVERY  OF DISTRIBUTION AND OTHER FIXED COSTS. WITHIN NINETY
DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMISSION SHALL REQUIRE
EACH ELECTRIC CORPORATION TO COMMENCE  THE  COLLECTION  OF  DISTRIBUTION
COST  DATA  NECESSARY TO ACCURATELY EVALUATE ALTERNATIVES TO TRADITIONAL
INFRASTRUCTURE INVESTMENTS.
  4. THE FIRST ONE  THOUSAND  MEGAWATTS  OF  CLEAN  ENERGY  TECHNOLOGIES
INSTALLED  AT  CUSTOMER PREMISES IN THE STATE, WITH A LIMIT OF ONE MEGA-
WATT PER CUSTOMER ACCOUNT, SHALL BE EXEMPT FROM ANY  EXIT  FEES  OR  ANY
SPECIAL  METER  FEES  CHARGED  BY ELECTRIC CORPORATIONS. IN ADDITION, NO
ELECTRIC CORPORATION SHALL LEVY A CHARGE FOR BACKUP OR STANDBY ENERGY OR
CAPACITY TO CUSTOMERS WHO  INSTALL  AND  USE  CLEAN  DISTRIBUTED  ENERGY
RESOURCES,  RATED  AT  ONE MEGAWATT OR LESS, ON THEIR PREMISES UNTIL THE
COMMISSION COMPLETES A STUDY ACCURATELY DETERMINING THE COST  OF  BACKUP
SERVICE,  AN  EVALUATION OF THE FULL RANGE OF BENEFITS SUCH TECHNOLOGIES
PROVIDE TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND  CERTIFIES  THAT
EACH ELECTRIC CORPORATION HAS ESTABLISHED TARIFFS THAT ACCURATELY CREDIT
CUSTOMERS FOR THESE BENEFITS.
  S 66-O. CLEAN ENERGY DEVELOPMENT. 1. FOR THE PURPOSES OF THIS SECTION,
"CLEAN  ENERGY TECHNOLOGIES" SHALL HAVE THE SAME DEFINITION SET FORTH IN
SECTION SIXTY-SIX-M OF THIS ARTICLE.
  2. WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE  OF  THIS  SECTION,  THE
PUBLIC SERVICE COMMISSION SHALL ADOPT CLEAN ENERGY REGULATIONS REQUIRING
EACH  ELECTRIC CORPORATION IN THE STATE TO ENSURE THAT ON OR BEFORE JULY
FIRST, TWO THOUSAND TEN, NO LESS THAN ONE-HALF OF  ONE  PERCENT  OF  THE
ENERGY  IT  HAS  SUPPLIED  TO EACH CUSTOMER IN THE PREVIOUS TWELVE MONTH

A. 2159                             6

PERIOD WAS GENERATED USING CLEAN  ENERGY  TECHNOLOGIES.  THE  COMMISSION
SHALL INCREASE SUCH REQUIREMENT BY ONE-HALF OF ONE PERCENT ON JULY FIRST
EACH  YEAR  THEREAFTER,  UNTIL  THE AMOUNT OF ENERGY REQUIRED FROM CLEAN
ENERGY  TECHNOLOGIES  REACHES  SIX  PERCENT.  ONCE  THE AMOUNT OF ENERGY
SUPPLIED  TO  CUSTOMERS  FROM  CLEAN  ENERGY  TECHNOLOGIES  REACHES  SIX
PERCENT,  THE  REQUIREMENT  SHALL  BE INCREASED BY ONE PERCENT EACH YEAR
THEREAFTER UNTIL THE AMOUNT OF ENERGY REQUIRED FROM CLEAN  ENERGY  TECH-
NOLOGIES  REACHES  TEN PERCENT OR UNTIL SUCH LATER DATE THAT THE COMMIS-
SION SHALL DETERMINE; PROVIDED, HOWEVER, THAT THE COMMISSION  SHALL  NOT
DECREASE THE REQUIRED PERCENTAGE AT ANY TIME.
  3. THE COMMISSION SHALL REVIEW ELECTRICITY PRODUCTS SOLD BY EACH ELEC-
TRIC  CORPORATION  IN  THE  STATE ON A PERIODIC BASIS TO ENSURE THAT THE
REQUIREMENTS SET FORTH IN SUBDIVISION TWO OF THIS SECTION ARE  MET.  THE
COMMISSION  SHALL  REVIEW  ITS REGULATIONS AND REQUIREMENTS FOR ENVIRON-
MENTAL DISCLOSURE LABELS TO ENSURE THAT INFORMATION PROVIDED TO  CUSTOM-
ERS  CONCERNING  CLEAN  ENERGY TECHNOLOGIES IS CLEAR AND UNDERSTANDABLE,
AND CONSIDER WHETHER IT IS APPROPRIATE TO REQUIRE ALL DISCLOSURE  LABELS
TO  INDICATE THE MINIMUM PERCENTAGE OF ENERGY REQUIRED FROM CLEAN ENERGY
TECHNOLOGIES PURSUANT TO THIS SECTION.
  4. AN ELECTRIC  CORPORATION  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 ELECTRIC CORPORATIONS TO ENTER
INTO CONVERSION TRANSACTIONS OR PURCHASE CREDITS FOR ENERGY SUPPLIED  TO
MEET  THE  CLEAN  ENERGY  REQUIREMENT BY ELECTRIC CORPORATIONS AFTER THE
EFFECTIVE DATE OF THIS SECTION  AND  BEFORE  JULY  FIRST,  TWO  THOUSAND
TWELVE. SUCH PROTOCOL SHALL ALLOW BANKING OF CREDITS FOR ELECTRIC ENERGY
FROM  CLEAN ENERGY TECHNOLOGIES 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 CONVERSION TRANSACTIONS OR A TRADING PROGRAM.
  S 7. Section 1005 of the public authorities law is amended by adding a
new subdivision 16 to read as follows:
  16. TO ESTABLISH A CLEAN ENERGY INITIATIVE TO PROVIDE ENERGY  SERVICES
TO  QUALIFIED  PUBLIC  PARTICIPANTS FOR THE INSTALLATION OF ENERGY EFFI-
CIENCY MEASURES AND CLEAN ENERGY TECHNOLOGIES.
  (A) FOR THE PURPOSES OF THIS SUBDIVISION:
  (1) "CLEAN ENERGY TECHNOLOGIES" SHALL HAVE  THE  SAME  DEFINITION  SET
FORTH IN SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  (2)  "ENERGY  EFFICIENCY"  SHALL HAVE THE SAME DEFINITION SET FORTH IN
SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  (3) "QUALIFIED PUBLIC PARTICIPANT"  MEANS  A  SCHOOL  DISTRICT,  CITY,
TOWN, VILLAGE, COUNTY, STATE AGENCY, PUBLIC BENEFIT CORPORATION OR STATE
UNIVERSITY.
  (B) THE AUTHORITY SHALL INVEST IN THE CLEAN ENERGY INITIATIVE NOT LESS
THAN  ONE  HUNDRED MILLION DOLLARS, ON AVERAGE PER YEAR, OVER A TEN YEAR
PERIOD STARTING JULY FIRST, TWO THOUSAND TEN.
  (C) THE AUTHORITY SHALL  BROADLY  DISSEMINATE  INFORMATION  ABOUT  THE
CLEAN ENERGY INITIATIVE TO QUALIFIED PUBLIC PARTICIPANTS.
  (D)  THE  AUTHORITY  SHALL PROVIDE ENERGY SERVICES TO QUALIFIED PUBLIC
PARTICIPANTS EITHER DIRECTLY OR THROUGH A THIRD-PARTY PROVIDER.
  (E) THE AUTHORITY SHALL REQUIRE THE QUALIFIED PUBLIC  PARTICIPANTS  TO
REIMBURSE  THE  FUNDS  DISPERSED  PURSUANT  TO THIS SUBDIVISION DURING A
PERIOD NOT TO EXCEED TEN YEARS WITH SAVINGS IN ENERGY COSTS.

A. 2159                             7

  (F) IN THE CASE OF SCHOOL DISTRICTS, ENERGY SERVICES MAY INCLUDE COSTS
NOT OTHERWISE REIMBURSED PURSUANT TO SUBDIVISION SIX OF SECTION  THIRTY-
SIX HUNDRED TWO OF THE EDUCATION LAW.
  (G)  THE AUTHORITY SHALL, IN CONSULTATION WITH THE DEPARTMENT OF ENVI-
RONMENTAL CONSERVATION, TAKE ADVANTAGE OF ANY EMISSION REDUCTION  CREDIT
PROGRAM  THAT MAY BE IN PLACE TO HELP POTENTIAL QUALIFIED PUBLIC PARTIC-
IPANTS MAXIMIZE THE ECONOMIC AND  ENVIRONMENTAL  BENEFITS  FROM  PARTIC-
IPATION IN THE CLEAN ENERGY INITIATIVE.
  (H)  THE  AUTHORITY  SHALL ESTABLISH AND REGULARLY CONVENE AN ADVISORY
COMMITTEE COMPRISED OF THE CHAIRMAN OF THE AUTHORITY,  THE  CHAIRMAN  OF
THE  PUBLIC  SERVICE  COMMISSION  AND  THE COMMISSIONER OF ENVIRONMENTAL
CONSERVATION OR THEIR DESIGNEES, SERVING AS EX OFFICIO MEMBERS; AND  THE
CHAIRMAN  OF THE AUTHORITY SHALL APPOINT ONE REPRESENTATIVE FROM EACH OF
THE FOLLOWING CUSTOMER CLASSIFICATIONS: RESIDENTIAL, LOW-INCOME RESIDEN-
TIAL, SMALL COMMERCIAL, LARGE COMMERCIAL/INDUSTRIAL,  AGRICULTURAL,  AND
CONSUMERS  RESIDING  IN  LOAD  POCKETS;  ONE INDIVIDUAL REPRESENTING THE
ELECTRIC DISTRIBUTION COMPANIES; ONE INDIVIDUAL REPRESENTING THE  ENERGY
SERVICE COMPANIES; AND ONE INDIVIDUAL REPRESENTING EACH OF THE FOLLOWING
AREAS  OF EXPERTISE: ENVIRONMENTAL PROTECTION, CLEAN ENERGY TECHNOLOGIES
AND ENERGY EFFICIENCY. THE APPOINTED MEMBERS OF THE COMMITTEE SHALL HAVE
NO DIRECT FINANCIAL INTEREST IN THE ALLOCATION  OF  THE  MONIES  IN  THE
CLEAN  ENERGY  FUND.  THE  AUTHORITY,  IN CONSULTATION WITH THE ADVISORY
COMMITTEE, SHALL ESTABLISH EVALUATION PROTOCOLS TO JUDGE THE SUCCESS  OF
THE  CLEAN  ENERGY FUND, AND SHALL PERIODICALLY CONTRACT FOR INDEPENDENT
REVIEW OF FUND MANAGEMENT.
  S 8. Section 1020-ii of the public authorities law, as  renumbered  by
chapter 234 of the laws of 2004, is renumbered section 1020-jj and a new
section 1020-ii is added to read as follows:
  S  1020-II.  CLEAN  ENERGY INITIATIVE. THE AUTHORITY SHALL COMPLY WITH
THE PROVISIONS OF THIS SECTION FOR  THE  PURPOSE  OF  LOWERING  CONSUMER
ENERGY BILLS, ENHANCING THE RELIABILITY OF THE SYSTEM, ENCOURAGING ENER-
GY  EFFICIENCY,  SUPPORTING THE DEVELOPMENT OF CLEAN ENERGY TECHNOLOGIES
SUCH AS WIND, SOLAR AND FUEL CELLS,  AND  REDUCING  HARMFUL  IMPACTS  OF
ELECTRICITY  GENERATION  AND  CONSUMPTION ON PUBLIC HEALTH AND SENSITIVE
ECOSYSTEMS.
  1. DEFINITIONS. FOR PURPOSES OF THIS SECTION:
  (A) "CLEAN DISTRIBUTED ENERGY RESOURCES" SHALL  HAVE  THE  SAME  DEFI-
NITION SET FORTH IN SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (B)  "CLEAN  ENERGY  TECHNOLOGIES"  SHALL HAVE THE SAME DEFINITION SET
FORTH IN SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  (C) "CUSTOMER-GENERATOR" SHALL HAVE THE SAME DEFINITION SET  FORTH  IN
SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  (D)  "ENERGY  EFFICIENCY"  SHALL HAVE THE SAME DEFINITION SET FORTH IN
SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  (E) "EXIT FEES" SHALL HAVE THE SAME DEFINITION SET  FORTH  IN  SECTION
SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (F)  "NET  ENERGY  METER"  SHALL HAVE THE SAME DEFINITION SET FORTH IN
SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  (G) "NET ENERGY METERING" SHALL HAVE THE SAME DEFINITION SET FORTH  IN
SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  (H)  "SOLAR  ELECTRIC  GENERATING EQUIPMENT" SHALL HAVE THE SAME DEFI-
NITION SET FORTH IN SECTION SIXTY-SIX-J OF THE PUBLIC SERVICE LAW.
  (I) "WIND ELECTRIC GENERATING EQUIPMENT" SHALL  HAVE  THE  SAME  DEFI-
NITION SET FORTH IN SECTION SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  2.  LONG  ISLAND  CLEAN  ENERGY FUND. (A) ON AND AFTER JULY FIRST, TWO
THOUSAND TEN, THE AUTHORITY SHALL CONTINUE THE LEVEL  OF  INVESTMENT  IN

A. 2159                             8

ENERGY  EFFICIENCY  AND CLEAN TECHNOLOGIES INVESTED IN CALENDAR YEAR TWO
THOUSAND EIGHT, AND SHALL ESTABLISH A LONG ISLAND CLEAN ENERGY FUND INTO
WHICH SUCH INVESTMENT SHALL BE PLACED. THE INVESTMENT ESTABLISHED PURSU-
ANT  TO  THIS  SECTION SHALL NOT BE REDUCED PRIOR TO JUNE THIRTIETH, TWO
THOUSAND TWENTY. AFTER SUCH DATE, THE AUTHORITY SHALL  MAKE  A  DETERMI-
NATION  AS  TO  WHETHER THE CLEAN ENERGY INVESTMENT SHOULD BE INCREASED,
DECREASED OR KEPT AT THE SAME LEVEL. IN MAKING THIS  DETERMINATION,  THE
AUTHORITY SHALL FULLY CONSIDER WHETHER THE OBJECTIVES OF LOWERING ENERGY
BILLS,  INCREASING  ECONOMIC  DEVELOPMENT  AND IMPROVING THE ENVIRONMENT
CONTINUE TO JUSTIFY THE CLEAN ENERGY CONTRIBUTION. THE  AUTHORITY  SHALL
PROVIDE  ALL  INTERESTED PARTIES AN OPPORTUNITY TO REVIEW AND COMMENT ON
ANY PROPOSED ADJUSTMENT PURSUANT TO THE STATE  ADMINISTRATIVE  PROCEDURE
ACT.
  (B)  THE  AUTHORITY  SHALL INVEST SUCH MONIES IN THE LONG ISLAND CLEAN
ENERGY FUND IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:
  (I) SEVENTY PERCENT OF SUCH MONIES SHALL BE INVESTED IN  ENERGY  EFFI-
CIENCY  FOR  CONSUMERS IN THE FOLLOWING CATEGORIES: RESIDENTIAL, LOW-IN-
COME RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AGRICULTURAL, EDUCATIONAL  AND
HEALTH  CARE.  THIRTY  PERCENT  OF  THE  ENERGY  EFFICIENCY  INVESTMENTS
REQUIRED PURSUANT TO THIS PARAGRAPH SHALL  BE  TARGETED  FOR  LOW-INCOME
RESIDENTIAL  AND  MULTI-FAMILY  ENERGY  EFFICIENCY PROGRAMS AND SHALL BE
DELIVERED IN CONJUNCTION WITH THE  STATEWIDE  LOW-INCOME  WEATHERIZATION
ASSISTANCE PROGRAM NETWORK OF LOCAL PROVIDERS.
  (II)  THIRTY  PERCENT OF SUCH MONIES SHALL BE INVESTED IN CLEAN ENERGY
TECHNOLOGIES. THESE FUNDS SHALL BE UTILIZED BY THE AUTHORITY, FOR  AMONG
OTHER THINGS, TO SUPPORT:
  (A)  RESEARCH, DEVELOPMENT AND DEMONSTRATION OF CLEAN ENERGY TECHNOLO-
GIES;
  (B) THE INSTALLATION, AT CUSTOMERS' PREMISES, OF AT LEAST SIXTY  MEGA-
WATTS  OF  CLEAN  ENERGY TECHNOLOGIES IN ITS SERVICE TERRITORY THROUGH A
BUYDOWN PROGRAM, INCLUDING INSTALLATIONS AT  FARMS,  AND  IN  LOW-INCOME
RESIDENTIAL  AND MULTI-FAMILY BUILDINGS. ON AND AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN, THE AUTHORITY SHALL IMPLEMENT A BUYDOWN PROGRAM  PURSU-
ANT  TO  THE  TERMS OF THIS SUBPARAGRAPH. THE INCENTIVE LEVEL OFFERED BY
THIS PROGRAM, IN COMBINATION WITH ANY  OTHER  FEDERAL,  STATE  OR  LOCAL
INCENTIVE  THAT  THE  CUSTOMER  RECEIVES,  SHALL BE SIXTY PERCENT OF THE
INSTALLED COST OF EACH TECHNOLOGY FOR THE FIRST EIGHT  MEGAWATTS  PHASE,
AND,  IN  EACH OF THE FOLLOWING FOUR PHASES OF TEN, TWELVE, FOURTEEN AND
SIXTEEN MEGAWATTS, THE TOTAL INCENTIVE SHALL BE  FIFTY,  FORTY,  THIRTY,
AND  TWENTY  PERCENT  OF  SUCH  INSTALLED COST, PROVIDED THAT AT NO TIME
SHALL THE TOTAL INCENTIVE FOR ANY PROJECT EXCEED THREE DOLLARS PER WATT;
AND
  (C) THE DEVELOPMENT OF CLEAN ENERGY TECHNOLOGIES IN ITS SERVICE TERRI-
TORY THROUGH A COMPETITIVE  AUCTION  OR  SOLICITATION  PROGRAM  FOR  THE
PURPOSE  OF  SUPPLYING ELECTRICITY TO CONSUMERS THROUGH THE TRANSMISSION
AND DISTRIBUTION SYSTEM. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS
SECTION, THE AUTHORITY SHALL ESTABLISH A COMPETITIVE PROGRAM TO  PROVIDE
PER-KILOWATT-HOUR  INCENTIVES  TO BIDDERS THAT PROVIDE SUBSTANTIAL PROOF
OF INTENT AND ABILITY TO BUILD  CLEAN  ENERGY  TECHNOLOGY  PROJECTS  AND
REQUIRE  THE  LOWEST  AMOUNT  OF  INCENTIVE OVER A PERIOD OF FIVE YEARS.
FOLLOWING THE ESTABLISHMENT OF THIS PROGRAM, THE AUTHORITY SHALL ISSUE A
REQUEST FOR LETTERS OF INTENT TO BID EVERY SIX MONTHS UNTIL  ALL  MONIES
ALLOCATED  TO CLEAN ENERGY TECHNOLOGIES HAVE BEEN INVESTED. IN DETERMIN-
ING THE AMOUNT OF INCENTIVE OR GRANT AWARDED UNDER THE AUCTION OR SOLIC-
ITATION PROCESS IN THIS CLAUSE, THE AUTHORITY SHALL TAKE INTO  CONSIDER-
ATION  ANY  REVENUES  LIKELY  TO  BE RECEIVED BY THE RECIPIENT UNDER THE

A. 2159                             9

CLEAN  ENERGY  REQUIREMENT  ESTABLISHED  BY  SUBDIVISION  FOUR  OF  THIS
SECTION.
  (III) ALL MONIES COLLECTED FROM THE CLEAN ENERGY CONTRIBUTION SHALL BE
FULLY  INVESTED.  HOWEVER,  THE PERCENT ALLOCATIONS PURSUANT TO SUBPARA-
GRAPHS (I) AND (II) OF THIS PARAGRAPH MAY  BE  ACHIEVED  ON  AN  AVERAGE
BASIS OVER A ROLLING PERIOD OF UP TO FIVE YEARS.
  3.  CLEAN  DISTRIBUTED ENERGY RESOURCES.   (A) ALL CUSTOMERS RECEIVING
DISTRIBUTION SERVICES FROM THE AUTHORITY SHALL BE ALLOWED  TO  INTERCON-
NECT  CLEAN ENERGY TECHNOLOGIES INSTALLED AT THEIR PREMISES TO THE ELEC-
TRIC DISTRIBUTION SYSTEM. WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE  OF
THIS  SECTION,  THE  AUTHORITY SHALL ISSUE REGULATIONS IMPLEMENTING THIS
REQUIREMENT, INCLUDING ADOPTION OF TECHNICAL  INTERCONNECTION  STANDARDS
AND INTERCONNECTION CONTRACTS WHICH SHALL:
  (I) PROVIDE FOR EXPEDITIOUS INTERCONNECTION;
  (II)  ALLOW  A  MAXIMUM INTERCONNECT CHARGE OF THIRTY-FIVE DOLLARS PER
KILOWATT FOR EACH KILOWATT GREATER THAN TEN KILOWATTS FOR SYSTEMS GREAT-
ER THAN TEN KILOWATTS AND LESS THAN ONE HUNDRED TWENTY-FIVE KILOWATTS IN
RATED CAPACITY AND, FOR SYSTEMS THAT ARE TEN KILOWATTS OR LESS, PROHIBIT
ANY CHARGE OR PAYMENT FOR INTERCONNECTION;
  (III) PROVIDE FOR UNIFORM TECHNICAL  INTERCONNECTION  REQUIREMENTS  TO
ENSURE  SAFETY AND RELIABILITY THAT ARE CONSISTENT TO THE MAXIMUM EXTENT
PRACTICABLE WITH STATEWIDE STANDARDS  AND  NATIONAL  STANDARDS  SUCH  AS
THOSE  PROMULGATED  BY  RECOGNIZED  NATIONAL ORGANIZATIONS INCLUDING THE
INSTITUTE FOR ELECTRICAL AND ELECTRONIC ENGINEERS AND THE NATIONAL ELEC-
TRIC CODE, EXCEPT WHERE THE AUTHORITY DETERMINES, AFTER A  PUBLIC  HEAR-
ING,  THAT  SPECIFIC REGIONAL OR STATEWIDE SAFETY AND RELIABILITY CONDI-
TIONS JUSTIFY TEMPORARY DEVIATION  FROM  THE  NATIONAL  STANDARDS  UNTIL
CONSISTENCY CAN BE ACHIEVED; AND
  (IV)  ENSURE  THAT  INTERCONNECTION  CONTRACTS  ARE CONSUMER FRIENDLY,
BRIEF AND FOR SYSTEMS UNDER ONE HUNDRED TWENTY-FIVE  KILOWATTS;  INCLUDE
NO  INDEMNIFICATION  REQUIREMENTS;  AND REQUIRE NO MORE THAN ONE HUNDRED
THOUSAND  DOLLARS  OF  HOMEOWNERS  INSURANCE  COVERAGE  FOR  RESIDENTIAL
CUSTOMERS  AND  NO  MORE THAN FIVE HUNDRED THOUSAND DOLLARS OF INSURANCE
COVERAGE FOR COMMERCIAL CUSTOMERS.
  (B) WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF  THIS  SECTION,  THE
AUTHORITY SHALL ISSUE REGULATIONS FOR ITS DISTRIBUTION SYSTEM THAT MINI-
MIZE  THE  LONG-TERM  COSTS  OF PROVIDING RELIABLE DISTRIBUTION SERVICE,
REMOVE BARRIERS TO COST-EFFECTIVE INVESTMENTS IN CLEAN DISTRIBUTED ENER-
GY RESOURCES AS ALTERNATIVES TO DISTRIBUTION INVESTMENTS, AND REMOVE THE
LINKAGE BETWEEN  THE  TOTAL  ENERGY  DISTRIBUTED  AND  THE  RECOVERY  OF
DISTRIBUTION  AND OTHER FIXED COSTS. WITHIN NINETY DAYS OF THE EFFECTIVE
DATE OF THIS SECTION, THE AUTHORITY SHALL  COMMENCE  THE  COLLECTION  OF
DISTRIBUTION  COST DATA NECESSARY TO ACCURATELY EVALUATE ALTERNATIVES TO
TRADITIONAL INFRASTRUCTURE INVESTMENTS.
  (C) THE FIRST TWO  HUNDRED  MEGAWATTS  OF  CLEAN  ENERGY  TECHNOLOGIES
INSTALLED   AT  A  CUSTOMER  PREMISES,  WITH  A  LIMIT  OF  ONE  HUNDRED
TWENTY-FIVE KILOWATTS PER CUSTOMER ACCOUNT, SHALL  BE  EXEMPT  FROM  ANY
EXIT  FEES OR ANY SPECIAL METER FEES CHARGED BY THE AUTHORITY.  IN ADDI-
TION, THE AUTHORITY SHALL NOT LEVY A CHARGE FOR BACKUP OR STANDBY ENERGY
OR CAPACITY TO CUSTOMERS WHO INSTALL AND USE  CLEAN  DISTRIBUTED  ENERGY
RESOURCES,  RATED AT ONE HUNDRED TWENTY-FIVE KILOWATTS OR LESS, ON THEIR
PREMISES UNTIL THE AUTHORITY COMPLETES A  STUDY  ACCURATELY  DETERMINING
THE  COST OF BACKUP SERVICE, AN EVALUATION OF THE FULL RANGE OF BENEFITS
SUCH TECHNOLOGIES PROVIDE TO THE TRANSMISSION  AND  DISTRIBUTION  SYSTEM
AND ACCURATELY CREDIT CUSTOMERS FOR THESE BENEFITS.

A. 2159                            10

  4. CLEAN ENERGY DEVELOPMENT. (A) WITHIN TWELVE MONTHS OF THE EFFECTIVE
DATE  OF THIS SECTION, THE AUTHORITY SHALL ADOPT A CLEAN ENERGY REQUIRE-
MENT THAT ENSURES THAT, NOT LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,
NO  LESS  THAN  ONE-HALF OF ONE PERCENT OF THE ENERGY IT HAS SUPPLIED TO
EACH  CUSTOMER  IN  THE PREVIOUS TWELVE MONTH PERIOD WAS GENERATED USING
CLEAN ENERGY TECHNOLOGIES. THE AUTHORITY SHALL INCREASE THE CLEAN ENERGY
REQUIREMENT BY ONE-HALF OF ONE PERCENT ANNUALLY ON JULY FIRST EACH  YEAR
THEREAFTER,  UNTIL THE AMOUNT OF ENERGY REQUIRED FROM CLEAN ENERGY TECH-
NOLOGIES REACHES SIX PERCENT. ONCE THE  AMOUNT  OF  ENERGY  SUPPLIED  TO
CUSTOMERS  FROM  CLEAN  ENERGY  TECHNOLOGIES  REACHES  SIX  PERCENT, THE
REQUIREMENT SHALL BE INCREASED BY ONE PERCENT EACH YEAR THEREAFTER UNTIL
THE AMOUNT OF ENERGY REQUIRED FROM CLEAN ENERGY TECHNOLOGIES REACHES TEN
PERCENT OR SUCH LATER DATE AS THE AUTHORITY SHALL  DETERMINE;  PROVIDED,
HOWEVER,  THAT  THE AUTHORITY SHALL NOT DECREASE THE REQUIRED PERCENTAGE
AT ANY TIME.
  (B) NOT LATER THAN JANUARY FIRST,  TWO  THOUSAND  TEN,  THE  AUTHORITY
SHALL  ESTABLISH AN ENVIRONMENTAL DISCLOSURE PROGRAM CONSISTENT WITH THE
PUBLIC SERVICE COMMISSION'S ENVIRONMENTAL DISCLOSURE PROGRAM. IN  IMPLE-
MENTING  THE  CLEAN  ENERGY REQUIREMENT, THE AUTHORITY SHALL ENSURE THAT
INFORMATION PROVIDED TO CUSTOMERS CONCERNING CLEAN  ENERGY  TECHNOLOGIES
IS  CLEAR AND UNDERSTANDABLE, AND SHALL CONSIDER WHETHER IT IS APPROPRI-
ATE TO INDICATE ON ALL DISCLOSURE LABELS THE MINIMUM PERCENTAGE OF ENER-
GY REQUIRED FROM CLEAN ENERGY TECHNOLOGIES PURSUANT TO THIS SECTION.
  (C) THE AUTHORITY MAY SATISFY THE REQUIREMENTS OF THIS SUBDIVISION  BY
ENTERING INTO CONVERSION TRANSACTIONS ESTABLISHED PURSUANT TO THE PUBLIC
SERVICE  COMMISSION'S  ENVIRONMENTAL  DISCLOSURE  PROGRAM  OR SUCH OTHER
TRADING PROGRAM THAT THE AUTHORITY MAY ESTABLISH OR  CHOOSE  TO  PARTIC-
IPATE  IN.  THE AUTHORITY SHALL BE ABLE TO BANK CREDITS FOR CLEAN ENERGY
SUPPLIED IN EXCESS OF REQUIREMENTS FOR A PERIOD OF  TWO  YEARS  AND  MAY
DEMONSTRATE  COMPLIANCE  WITHIN  THREE MONTHS OF THE END OF THE CALENDAR
YEAR IN ORDER TO ALLOW FOR COMPLIANCE VIA CONVERSION TRANSACTIONS  OR  A
TRADING PROGRAM.
  5. ADVISORY PANEL. THE AUTHORITY SHALL ESTABLISH AND REGULARLY CONVENE
AN ADVISORY COMMITTEE COMPRISED OF THE CHAIRMAN OF THE AUTHORITY SERVING
AS  AN  EX  OFFICIO MEMBER; SEVEN MEMBERS APPOINTED BY THE AUTHORITY ONE
MEMBER TO BE APPOINTED TO BE REPRESENTATIVE OF  EACH  OF  THE  FOLLOWING
CUSTOMER  CLASSIFICATIONS:  RESIDENTIAL,  LOW-INCOME  RESIDENTIAL, SMALL
COMMERCIAL, LARGE  COMMERCIAL/INDUSTRIAL,  AGRICULTURAL,  AND  CONSUMERS
RESIDING IN LOAD POCKETS; AND FOUR MEMBERS APPOINTED BY THE AUTHORITY TO
REPRESENT  EACH  OF  THE  FOLLOWING  AREAS  OF  EXPERTISE: ENVIRONMENTAL
PROTECTION,  CLEAN  ENERGY  TECHNOLOGIES,  AND  ENERGY  EFFICIENCY.  THE
APPOINTED MEMBERS OF THE COMMITTEE SHALL HAVE NO DIRECT FINANCIAL INTER-
EST  IN THE ALLOCATION OF THE MONIES FROM THE CLEAN ENERGY CONTRIBUTION.
THE AUTHORITY, IN CONSULTATION WITH THE ADVISORY COMMITTEE, SHALL ESTAB-
LISH EVALUATION PROTOCOLS TO JUDGE THE SUCCESS OF  THE  INITIATIVE,  AND
SHALL PERIODICALLY CONTRACT FOR INDEPENDENT REVIEW OF FUND MANAGEMENT.
  6. REPORTING. ON OR BEFORE JULY FIRST, TWO THOUSAND ELEVEN AND ANNUAL-
LY  THEREAFTER,  THE AUTHORITY SHALL ISSUE A REPORT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY  IDEN-
TIFYING THE BUDGET BALANCE, PROJECTED REVENUES AND EXPENDITURES, PROGRAM
ACHIEVEMENTS  AND  ALL OTHER RELEVANT INFORMATION RELATING TO THE IMPLE-
MENTATION OF THIS SECTION.
  S 9. Section 1854 of the public authorities law is amended by adding a
new subdivision 18 to read as follows:
  18. TO ADMINISTER  THE  CLEAN  ENERGY  FUND  ESTABLISHED  PURSUANT  TO
SECTION EIGHTEEN HUNDRED FIFTY-FOUR-E OF THIS TITLE.

A. 2159                            11

  S  10.  The  public authorities law is amended by adding a new section
1854-e to read as follows:
  S 1854-E. CLEAN ENERGY FUND. 1. FOR PURPOSES OF THIS SECTION:
  (A)  "CLEAN  ENERGY  TECHNOLOGIES"  SHALL HAVE THE SAME DEFINITION SET
FORTH IN SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  (B) "ENERGY EFFICIENCY" SHALL HAVE THE SAME DEFINITION  SET  FORTH  IN
SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  (C)  "LOAD POCKET" MEANS A GEOGRAPHIC AREA IN WHICH ELECTRICITY DEMAND
SOMETIMES EXCEEDS LOCAL GENERATION CAPABILITY AND IN WHICH THERE  IS  AN
ELECTRICITY IMPORT LIMITATION AS A RESULT OF TRANSMISSION CONSTRAINTS.
  2.  THE  AUTHORITY  SHALL  ESTABLISH  A  CLEAN  ENERGY FUND FOR MONIES
RECEIVED  FROM  ELECTRIC  DISTRIBUTION  COMPANIES  PURSUANT  TO  SECTION
SIXTY-SIX-M  OF  THE PUBLIC SERVICE LAW. THE AUTHORITY SHALL INVEST SUCH
FUNDS IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:
  (A) SEVENTY PERCENT OF SUCH MONIES SHALL BE INVESTED IN  ENERGY  EFFI-
CIENCY  FOR  CONSUMERS IN THE FOLLOWING CATEGORIES: RESIDENTIAL, LOW-IN-
COME, RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AGRICULTURAL, EDUCATIONAL AND
HEALTH  CARE.  THIRTY  PERCENT  OF  THE  ENERGY  EFFICIENCY  INVESTMENTS
REQUIRED  PURSUANT  TO  THIS  PARAGRAPH SHALL BE TARGETED FOR LOW-INCOME
RESIDENTIAL AND MULTI-FAMILY ENERGY EFFICIENCY  PROGRAMS  AND  SHALL  BE
DELIVERED  IN  CONJUNCTION  WITH THE STATEWIDE LOW-INCOME WEATHERIZATION
ASSISTANCE PROGRAM NETWORK OF LOCAL PROVIDERS.
  (B) THIRTY PERCENT OF SUCH MONIES SHALL BE INVESTED  IN  CLEAN  ENERGY
TECHNOLOGIES.  THESE FUNDS SHALL BE UTILIZED BY THE AUTHORITY, FOR AMONG
OTHER THINGS, TO SUPPORT:
  (I) RESEARCH, DEVELOPMENT AND DEMONSTRATION OF CLEAN ENERGY  TECHNOLO-
GIES;
  (II)  THE  INSTALLATION,  AT  CUSTOMERS'  PREMISES,  OF AT LEAST THREE
HUNDRED MEGAWATTS OF CLEAN ENERGY TECHNOLOGIES IN THE  STATE  THROUGH  A
BUYDOWN  PROGRAM,  INCLUDING  INSTALLATIONS  AT FARMS, AND IN LOW-INCOME
RESIDENTIAL AND MULTI-FAMILY BUILDINGS. ON AND AFTER JANUARY FIRST,  TWO
THOUSAND ELEVEN, THE AUTHORITY SHALL IMPLEMENT A PROGRAM PURSUANT TO THE
TERMS OF THIS SUBPARAGRAPH. THE INCENTIVE LEVEL OFFERED BY THIS PROGRAM,
IN COMBINATION WITH ANY OTHER FEDERAL, STATE OR LOCAL INCENTIVE THAT THE
CUSTOMER  RECEIVES, SHALL BE SIXTY PERCENT OF THE INSTALLED COST OF EACH
TECHNOLOGY FOR THE FIRST FORTY MEGAWATTS PHASE,  AND,  IN  EACH  OF  THE
FOLLOWING  FOUR  PHASES  OF FIFTY, SIXTY, SEVENTY, AND EIGHTY MEGAWATTS,
THE TOTAL INCENTIVE SHALL BE FIFTY, FORTY, THIRTY, AND TWENTY PERCENT OF
SUCH INSTALLED COST, PROVIDED THAT AT NO TIME SHALL THE TOTAL  INCENTIVE
FOR ANY PROJECT EXCEED THREE DOLLARS PER WATT; AND
  (III)  THE  DEVELOPMENT  OF  CLEAN  ENERGY  TECHNOLOGIES  IN THE STATE
THROUGH A COMPETITIVE AUCTION OR SOLICITATION PROGRAM AT  THE  WHOLESALE
LEVEL  FOR THE PURPOSE OF SUPPLYING ELECTRICITY TO CONSUMERS THROUGH THE
TRANSMISSION AND DISTRIBUTION SYSTEM. WITHIN SIX MONTHS OF THE EFFECTIVE
DATE OF THIS  SECTION,  THE  AUTHORITY  SHALL  ESTABLISH  A  COMPETITIVE
PROGRAM  TO PROVIDE PER-KILOWATT-HOUR INCENTIVES TO BIDDERS THAT PROVIDE
SUBSTANTIAL PROOF OF INTENT AND ABILITY TO BUILD CLEAN ENERGY TECHNOLOGY
PROJECTS AND REQUIRE THE LOWEST AMOUNT OF INCENTIVE  OVER  A  PERIOD  OF
FIVE  YEARS.  FOLLOWING THE ESTABLISHMENT OF THIS PROGRAM, THE AUTHORITY
SHALL ISSUE A REQUEST FOR LETTERS OF INTENT  TO  BID  EVERY  SIX  MONTHS
UNTIL  ALL  MONIES  ALLOCATED  TO  CLEAN  ENERGY  TECHNOLOGIES HAVE BEEN
INVESTED. IN DETERMINING THE AMOUNT OF INCENTIVE OR GRANT AWARDED  UNDER
THE  AUCTION OR SOLICITATION PROCESS IN THIS SUBPARAGRAPH, THE AUTHORITY
SHALL TAKE INTO CONSIDERATION ANY REVENUES LIKELY TO BE RECEIVED BY  THE
RECIPIENT  UNDER  THE  CLEAN  ENERGY  REQUIREMENT ESTABLISHED BY SECTION
SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.

A. 2159                            12

  (C) TWENTY-FIVE PERCENT OF THE SUM OF MONIES ALLOCATED  IN  PARAGRAPHS
(A)  AND  (B)  OF  THIS  SUBDIVISION  SHALL BE MADE AVAILABLE TO DEVELOP
TARGETED PROGRAMS (UTILIZING ENERGY EFFICIENCY, LOW-INCOME ENERGY  EFFI-
CIENCY,  CLEAN  ENERGY  TECHNOLOGIES AND AIR CONDITIONING EQUIPMENT THAT
UTILIZES  STEAM OR NATURAL GAS) THAT ASSIST ELECTRIC DISTRIBUTION COMPA-
NIES AND DISTRIBUTED RESOURCE PROVIDERS TO ADDRESS  THE  NEEDS  OF  LOAD
POCKETS  THAT HAVE SUSTAINED OUT-OF-MERIT ORDER DISPATCH FOR RELIABILITY
REASONS, PROVIDED THAT THE ELECTRIC DISTRIBUTION COMPANY FUNDS AT  LEAST
THIRTY PERCENT OF THE COST OF SUCH TARGETED PROGRAMS.
  (D)  ALL  MONIES  IN  THE FUND SHALL BE INVESTED. HOWEVER, THE PERCENT
ALLOCATIONS IN PARAGRAPHS (A), (B) AND (C) OF THIS  SUBDIVISION  MAY  BE
ACHIEVED ON AN AVERAGE BASIS OVER A ROLLING PERIOD OF UP TO FIVE YEARS.
  3.  THE  AUTHORITY  SHALL  ESTABLISH AND REGULARLY CONVENE AN ADVISORY
COMMITTEE COMPRISED OF THE CHAIRMAN OF THE AUTHORITY,  THE  CHAIRMAN  OF
THE  PUBLIC  SERVICE  COMMISSION  AND  THE COMMISSIONER OF ENVIRONMENTAL
CONSERVATION OR THEIR DESIGNEES, SERVING AS EX OFFICIO MEMBERS; AND  THE
CHAIRMAN  OF THE AUTHORITY SHALL APPOINT ONE REPRESENTATIVE FROM EACH OF
THE FOLLOWING CUSTOMER CLASSIFICATIONS: RESIDENTIAL, LOW-INCOME RESIDEN-
TIAL, SMALL COMMERCIAL, LARGE COMMERCIAL/INDUSTRIAL,  AGRICULTURAL,  AND
CONSUMERS  RESIDING  IN  LOAD  POCKETS;  ONE INDIVIDUAL REPRESENTING THE
ELECTRIC DISTRIBUTION COMPANIES; ONE INDIVIDUAL REPRESENTING THE  ENERGY
SERVICE COMPANIES; AND ONE INDIVIDUAL REPRESENTING EACH OF THE FOLLOWING
AREAS  OF EXPERTISE: ENVIRONMENTAL PROTECTION, CLEAN ENERGY TECHNOLOGIES
AND ENERGY EFFICIENCY. THE APPOINTED MEMBERS OF THE COMMITTEE SHALL HAVE
NO DIRECT FINANCIAL INTEREST IN THE ALLOCATION  OF  THE  MONIES  IN  THE
CLEAN  ENERGY  FUND.  THE  AUTHORITY,  IN CONSULTATION WITH THE ADVISORY
COMMITTEE, SHALL ESTABLISH EVALUATION PROTOCOLS TO JUDGE THE SUCCESS  OF
THE  CLEAN  ENERGY FUND, AND SHALL PERIODICALLY CONTRACT FOR INDEPENDENT
REVIEW OF FUND MANAGEMENT.
  4. ON OR BEFORE JULY FIRST, TWO THOUSAND ELEVEN AND ANNUALLY THEREAFT-
ER, THE AUTHORITY SHALL ISSUE A REPORT TO THE PUBLIC SERVICE COMMISSION,
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE  SPEAKER  OF
THE ASSEMBLY IDENTIFYING THE CLEAN ENERGY FUND BALANCE, PROJECTED REVEN-
UES  AND  EXPENDITURES,  PROGRAM  ACHIEVEMENTS,  AND  ALL OTHER RELEVANT
INFORMATION.
  S 11. Severability. If any clause,  sentence,  paragraph,  section  or
part  of  this act shall be adjudged by any court of competent jurisdic-
tion to be invalid, such judgment shall not affect, impair or invalidate
the remainder thereof, but shall be confined in  its  operation  to  the
clause,  sentence,  paragraph, section or part thereof directly involved
in the controversy in which such judgment shall have been rendered.
  S 12. This act shall take effect immediately, provided  that  sections
two  and  three of this act shall apply to taxable years beginning on or
after January 1, 2011.