LBD17534-02-0
S. 8009 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
S. 8009 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.
S. 8009 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
S. 8009 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
S. 8009 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.
S. 8009 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%
S. 8009 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
S. 8009 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-
S. 8009 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.
S. 8009 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%
S. 8009 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.
S. 8009 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
S. 8009 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.
