NY State Assembly Bill A5713C

Archive: Last Bill Status - Stricken

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (11)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 02, 2012	enacting clause stricken
Jan 04, 2012	referred to energy
Jun 16, 2011	print number 5713c
Jun 16, 2011	amend (t) and recommit to ways and means
Jun 01, 2011	print number 5713b
Jun 01, 2011	amend and recommit to ways and means
May 13, 2011	print number 5713a
May 13, 2011	amend and recommit to ways and means
Apr 13, 2011	reported referred to ways and means
Mar 02, 2011	reference changed to energy
Feb 25, 2011	referred to ways and means

Bill Amendments

Original

C (Active)

Original

C (Active)

Co-Sponsors

Multi-Sponsors

A5713 - Details

Law Section:: Public Service Law
Laws Affected:: Add §66-m, Pub Serv L; amd §§1005 & ren §§1020-hh - 1020-jj to be §§1020-ii - 1020-kk, add §1020-hh, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:: A11004

A5713 - Summary

Creates the New York solar industry development and jobs act; relates to procurement of solar renewable energy credits; establishes schedule with annual percentages to be met for compliance years.

A5713 - Bill Text download pdf

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

                                  5713

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 25, 2011
                               ___________

Introduced by M. of A. ENGLEBRIGHT, CAHILL, SCHIMEL, BRENNAN, ROSENTHAL,
  CRESPO  --  Multi-Sponsored  by  --  M. of A. BOYLE, HEASTIE, McENENY,
  MILLMAN, RAIA, REILLY -- read once and referred to  the  Committee  on
  Ways and Means

AN  ACT  to amend the public service law and the public authorities law,
  in relation to the creation of the New York solar industry development
  and jobs act of 2011 and the procurement  of  solar  renewable  energy
  credits;  and providing for the repeal of such provisions upon expira-
  tion thereof

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

  Section  1.  Legislative  intent  and purpose. It is the intent of the
legislature to enable the rapid and sustainable development of a  robust
solar  power  industry  in  New York by creating a scalable, diverse and
competitive solar energy market.  By tapping into the  state's  abundant
solar  energy  resources, it is the further intent of the legislature to
harness the multiple benefits associated with  the  generation  of  such
clean  power,  including the significant creation of much needed jobs, a
reduction of the long-term  costs  of  electricity  generation  for  New
York's  energy  consumers, including transmission and distribution costs
that continue to accelerate in proportion to overall electricity  supply
costs  for  the  residents  of  this state, increased reliability of the
state's electric grid, and a decrease in the  emission  of  harmful  air
pollution, including localized emissions from "peaker" plants and green-
house  gas  emissions.  By  establishing  such  a program, New York will
create a solar energy enterprise that will elevate the state to be among
the world's cutting edge clean energy industry leaders, while helping to
secure increased economic development for New Yorkers.
  S 2. Short title.  This act shall be known and may  be  cited  as  the
"New York solar industry development and jobs act of 2011".

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08692-02-1

A. 5713                             2

  S 3. The public service law is amended by adding a new section 66-m to
read as follows:
  S  66-M.  PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1. AS USED IN
THIS SECTION:
  (A) "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A  PHOTOVOLTAIC
DEVICE  THAT  DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF A BUILDING
INCLUDING INTEGRATED ROOF COVER, FACADE  OR  BUILDING  CLADDING,  GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES, AND SKYLIGHTS;
  (B)  "ELECTRIC  DISTRIBUTION  COMPANY" MEANS AN INVESTOR-OWNED UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE;
  (C) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (D)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL
BOUNDARIES  OF  THE  STATE  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
THAT IS NOT SUBJECT TO A POWER PURCHASE AGREEMENT;
  (E) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (F) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (G)  "RETAIL  ELECTRIC  SUPPLIER"  MEANS  AN ENTITY AUTHORIZED TO SELL
ELECTRICITY AT RETAIL TO END-USE CUSTOMERS IN THIS STATE,  INCLUDING  AN
ELECTRIC  DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR AN
ENERGY SERVICE COMPANY LICENSED BY THE COMMISSION FOR SUCH PURPOSE;
  (H) "SMALL RETAIL DISTRIBUTED SOLAR ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (I) "SOLAR ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT  OF  A
CERTAIN  DOLLAR  AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE COMMIS-
SION, THAT A RETAIL ELECTRIC SUPPLIER MAY SUBMIT TO  THE  COMMISSION  IN
ORDER  TO  COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION
TWO OF THIS SECTION;
  (J) "SOLAR PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR  A  MINIMUM  OF
FIFTEEN  YEARS,  FOR THE PURCHASE OF SRECS FROM A QUALIFIED SOLAR ENERGY
GENERATOR; AND
  (K) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION.
  2. (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE, AT  MINI-
MUM,  SRECS  TO  MEET THE FOLLOWING PERCENTAGES OF SUCH SUPPLIER'S TOTAL
ELECTRIC SALES IN EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.05%
  2014                0.10%
  2015                0.15%
  2016                0.20%
  2017                0.30%
  2018                0.40%
  2019                0.50%
  2020                0.75%
  2021                1.00%

A. 5713                             3

  2022                1.25%
  2023                1.50%
  2024                2.00%
  2025                2.50%
  (B)  AT  LEAST  TWENTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO
EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY
SHALL  BE  MET  THROUGH  THE  PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST  AN  ADDITIONAL
THIRTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY  SHALL  BE  MET
THROUGH  THE  PROCUREMENT  OF  SRECS  ASSOCIATED WITH RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR  OBLIGATIONS  ESTABLISHED
BY  THE  COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT
OF SRECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED  QUALIFIED  SOLAR
ENERGY GENERATION.
  (E)  THE  COMMISSION,  IN  COORDINATION WITH THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY  AND  THE  WHOLESALE  GRID  OPERATOR,
SHALL ESTABLISH AN AUTOMATED SREC TRACKING SYSTEM WITHIN THREE MONTHS OF
THE EFFECTIVE DATE OF THIS SECTION.
  (F)  SRECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS ESTAB-
LISHED IN THIS SUBDIVISION IN THE COMPLIANCE  YEAR  IN  WHICH  THEY  ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  3.  (A)  IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION,  THEY  SHALL
BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING A SOLAR 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 SOLAR ENERGY GENERATION
EQUIPMENT NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED  IN  SUBDIVI-
SION TWO OF THIS SECTION.
  (B)  NO  LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMISSION
SHALL ESTABLISH A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE  THROUGH
THE YEAR TWO THOUSAND TWENTY-FIVE, AND SHALL ANNUALLY REVIEW SUCH SCHED-
ULE  TO  ENSURE  THAT  THE  PAYMENTS ARE SET AT A LEVEL TO STIMULATE THE
DEVELOPMENT OF NEW  QUALIFIED  SOLAR  ENERGY  GENERATION  EQUIPMENT,  IN
ACCORDANCE  WITH  THE PREVIOUS SUBDIVISION. ONCE SUCH SCHEDULE IS ESTAB-
LISHED, THE COMMISSION MAY ADOPT, AFTER APPROPRIATE NOTICE AND  OPPORTU-
NITY FOR PUBLIC COMMENT, AN INCREASE IN ALTERNATIVE COMPLIANCE PAYMENTS,
PROVIDED  THAT  THE  COMMISSION  SHALL NOT REDUCE PREVIOUSLY ESTABLISHED
LEVELS OF PAYMENTS, NOR SHALL THE COMMISSION  PROVIDE  RELIEF  FROM  THE
OBLIGATION  OF  PAYMENT  OF THE SOLAR 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 SOLAR INITI-
ATIVES TO BE DEVELOPED BY THE NEW YORK STATE ENERGY RESEARCH AND  DEVEL-
OPMENT AUTHORITY.
  4.  (A)  NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMIS-
SION SHALL ESTABLISH A TEMPLATE FOR SOLAR PURCHASE AGREEMENTS TO BE USED
BY RETAIL ELECTRIC SUPPLIERS THAT ARE  ELECTRIC  DISTRIBUTION  COMPANIES
FOR THEIR PROCUREMENT OF SRECS FOR THE PURPOSE OF FULFILLING THEIR OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.

A. 5713                             4

  (B)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL, NOT LATER THAN JULY FIRST, TWO  THOUSAND  TWELVE,  SUBMIT
FOR  COMMISSION REVIEW AND APPROVAL A SOLAR SOLICITATION PLAN THAT SHALL
INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS  FOR  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING  ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. THE
ELECTRIC  DISTRIBUTION  COMPANY'S  SOLAR  SOLICITATION  PLAN  SHALL   BE
DESIGNED  TO FOSTER A DIVERSITY OF SOLAR PROJECT SIZES AND PARTICIPATION
AMONG  ALL  ELIGIBLE  CUSTOMER  CLASSES  SUBJECT  TO  COST-EFFECTIVENESS
CONSIDERATIONS.   A SEPARATE SOLICITATION PROCESS SHALL BE CONDUCTED FOR
THE PROCUREMENTS OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENER-
GY GENERATION PRODUCED BY EQUIPMENT THAT IS BETWEEN  FIFTY-ONE  AND  TWO
HUNDRED FIFTY KILOWATTS IN SIZE.
  (C)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL EXECUTE ITS APPROVED  SOLICITATION  PLAN  AND  SUBMIT  FOR
COMMISSION  REVIEW  AND  APPROVAL  ITS  PREFERRED SOLAR PROCUREMENT PLAN
COMPRISED OF PROPOSED SOLAR PURCHASE  AGREEMENTS  FOR  SRECS  ASSOCIATED
WITH  QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIB-
UTED SOLAR 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 SOLAR PROCUREMENT PLAN WOULD RESULT IN THE
ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO  THE
PROCUREMENT  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION
OTHER THAN SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  AT  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 JULY FIRST, TWO THOUSAND TWELVE, EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY SHALL  SUBMIT  TO
THE COMMISSION FOR REVIEW AND APPROVAL A PLAN FOR THE ACHIEVEMENT OF ITS
OBLIGATION  PERTAINING TO THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  ESTABLISHED  IN  SUBDIVISION
TWO OF THIS SECTION.
  5.  EACH  RETAIL  ELECTRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE ENTITLED TO RECOVER THE  PRUDENTLY  INCURRED  COSTS  OF
COMPLYING  WITH  ITS  OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS
SECTION, AS DETERMINED BY THE COMMISSION. ALL SUCH COSTS SHALL BE RECOV-
ERED THROUGH THE SUPPLY PORTION OF EACH ELECTRIC CUSTOMER'S  BILL  IN  A
COMPETITIVELY NEUTRAL MANNER.
  6. NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE COMMISSION SHALL
ESTABLISH  AN  INCENTIVE  PROGRAM FOR RETAIL ELECTRIC SUPPLIERS THAT ARE
ELECTRIC DISTRIBUTION COMPANIES BASED ON SUCH COMPANIES' ACHIEVEMENT  OF
THEIR  OBLIGATIONS,  AND  EXEMPLARY PERFORMANCE BEYOND SUCH OBLIGATIONS,
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION (I) IN  A  COST-EFFECTIVE
MANNER  THAT ACHIEVES THE OBLIGATIONS AT LEAST COST AND AVOIDS LONG-TERM
COSTS  TO  THE  TRANSMISSION  AND  DISTRIBUTION  SYSTEM;  (II)  PROVIDES
ENHANCED  ELECTRICITY RELIABILITY WITHIN COMPANIES' SERVICE TERRITORIES;
AND (III) MINIMIZES PEAK LOAD IN CONSTRAINED AREAS.
  7. NO LATER THAN JANUARY FIRST, TWO THOUSAND  TWELVE,  THE  COMMISSION
SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK STATE ENERGY RESEARCH AND

A. 5713                             5

DEVELOPMENT AUTHORITY, ESTABLISH THE TERMS AND CONDITIONS THAT SHALL  BE
APPLICABLE  TO SOLAR PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC
SUPPLIERS THAT ARE ELECTRIC DISTRIBUTION COMPANIES FOR  THE  PROCUREMENT
OF  SRECS  ASSOCIATED  WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' OBLIGATIONS PERTAIN-
ING TO SRECS ASSOCIATED WITH SUCH GENERATION ESTABLISHED IN  SUBDIVISION
TWO  OF THIS SECTION.  SUCH TERMS AND CONDITIONS SHALL INCLUDE A TARIFF,
AS ESTABLISHED BY THE COMMISSION IN CONJUNCTION WITH THE NEW YORK  STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, TO  BE
PAID  BY  ELECTRIC  DISTRIBUTION COMPANIES TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS. THE COMMISSION, IN  CONJUNCTION  WITH  THE  NEW  YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SHALL ESTABLISH A SEPA-
RATE  TARIFF  FOR  THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION THAT IS PRODUCED BY  BUILDING  INTE-
GRATED  PHOTOVOLTAIC EQUIPMENT, WHICH SHALL BE EQUIVALENT TO ONE HUNDRED
TWENTY-FIVE PERCENT OF THE TARIFF APPLICABLE TO  SRECS  ASSOCIATED  WITH
OTHER  SOURCES  OF SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION. THE
COMMISSION, IN CONJUNCTION WITH THE NEW YORK STATE ENERGY  RESEARCH  AND
DEVELOPMENT  AUTHORITY,  SHALL  REVIEW  SUCH TARIFFS EVERY TWO YEARS AND
ADJUST AS NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO SRECS ASSO-
CIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED
IN SUBDIVISION TWO OF THIS SECTION.
  8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY  ENTERED  INTO  BEFORE
JANUARY  FIRST,  TWO THOUSAND THIRTEEN BY RETAIL ELECTRIC SUPPLIERS THAT
ARE NOT ELECTRIC DISTRIBUTION COMPANIES SHALL BE EXEMPT FROM  THE  OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  9.  EACH  RETAIL  ELECTRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO CONSTRUCT, OWN AND OPERATE QUALIFIED SOLAR
ENERGY GENERATION EQUIPMENT FOR THE PURPOSE OF COMPLYING WITH THE COMPA-
NY'S  OBLIGATIONS  ESTABLISHED  IN  SUBDIVISION  TWO  OF  THIS  SECTION;
PROVIDED,  HOWEVER,  THAT  THE SRECS ASSOCIATED WITH THE QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY SUCH EQUIPMENT SHALL NOT,  IN  THE  AGGRE-
GATE,  COMPRISE GREATER THAN TWENTY-FIVE PERCENT OF SUCH COMPANY'S OBLI-
GATIONS, AS ESTABLISHED IN SUBDIVISION  TWO  OF  THIS  SECTION,  IN  ANY
CALENDAR  YEAR.  NO  ELECTRIC DISTRIBUTION COMPANY MAY RECOVER PRUDENTLY
INCURRED COSTS ASSOCIATED WITH THE CONSTRUCTION OF QUALIFIED SOLAR ENER-
GY GENERATION EQUIPMENT WITHOUT OBTAINING PRIOR APPROVAL FOR  THE  COSTS
FROM THE COMMISSION.
  10.  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO RESELL OR OTHERWISE DISPOSE OF  SRECS  AND
ANY ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION PROCURED BY SUCH COMPA-
NY  THAT  IS IN EXCESS OF ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO
OF THIS SECTION, PROVIDED THE COMPANY SHALL NET  THE  COST  OF  PAYMENTS
MADE  FOR  SRECS  AND  ANY  ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION
UNDER SOLAR PURCHASE AGREEMENTS AGAINST THE  PROCEEDS  OF  THE  SALE  OF
SRECS  AND  ANY  ASSOCIATED  QUALIFIED  SOLAR 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.
  11. (A) WITHIN THIRTY DAYS OF THE SUBMISSION OF THE ANNUAL  COMPLIANCE
REPORTS  FILED  BY  RETAIL  ELECTRIC  SUPPLIERS  PURSUANT TO SUBDIVISION
TWELVE OF THIS SECTION, THE  COMMISSION  SHALL  DETERMINE  THE  COMBINED
TOTAL  ANNUAL  EXPENDITURES  FOR THE PROCUREMENT OF SRECS MADE BY RETAIL
ELECTRIC SUPPLIERS FOR THE PURPOSES OF MEETING  THE  ANNUAL  REQUIREMENT
SET  FORTH  IN  PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE

A. 5713                             6

APPLICABLE COMPLIANCE YEAR AS A PERCENTAGE OF THE TOTAL RETAIL ELECTRIC-
ITY SALES REVENUES FOR RETAIL ELECTRIC  SUPPLIERS  FOR  SUCH  COMPLIANCE
YEAR.  IF  SUCH  PERCENTAGE  EXCEEDS  ONE AND ONE-HALF PERCENT, THEN THE
ANNUAL  REQUIREMENT  FOR  THE  COMPLIANCE  YEAR FOR WHICH THE COMMISSION
MAKES ITS DETERMINATION SHALL CONTINUE  TO  BE  THE  ANNUAL  REQUIREMENT
APPLICABLE IN EACH SUBSEQUENT COMPLIANCE YEAR UNTIL THIS LIMITATION ENDS
AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION BY THE  COMMISSION,
BASED  UPON A REVIEW OF THE RETAIL ELECTRIC SUPPLIERS' ANNUAL COMPLIANCE
REPORTS, THAT THE COMBINED TOTAL ANNUAL EXPENDITURES FOR THE PROCUREMENT
OF SRECS MADE BY RETAIL ELECTRIC SUPPLIERS TO MEET THE APPLICABLE ANNUAL
REQUIREMENT FOR A COMPLIANCE  YEAR  DID  NOT  EXCEED  ONE  AND  ONE-HALF
PERCENT  OF THE TOTAL RETAIL ELECTRICITY SALES REVENUES FOR RETAIL ELEC-
TRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. FOR THE COMPLIANCE  YEAR  IMME-
DIATELY  FOLLOWING THE END OF THE LIMITATION PURSUANT TO THIS PARAGRAPH,
THE APPLICABLE ANNUAL REQUIREMENT SHALL BE THE REQUIREMENT SET FORTH  IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY  FOLLOWING  THE  COMPLIANCE YEAR FOR WHICH THE LIMITATION IN
PARAGRAPH (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL  REQUIREMENT
SHALL  CONTINUE  TO INCREASE IN THE INCREMENTS PROVIDED FOR IN PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION FOR EACH  SUBSEQUENT  YEAR  UNTIL
THE  ANNUAL  REQUIREMENT  REACHES THE PERCENTAGE SET FORTH IN SUCH PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  (C) SOLAR ALTERNATIVE COMPLIANCE  PAYMENTS  MADE  BY  RETAIL  ELECTRIC
SUPPLIERS  PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL NOT COUNT
TOWARDS THE ANNUAL EXPENDITURE LIMITATIONS SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  12. (A) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO  LATER
THAN  JULY  FIRST  OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND
TWENTY-SIX THE COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAKER  OF  THE
ASSEMBLY,  TEMPORARY  PRESIDENT  OF THE SENATE, AND CHAIRS OF THE SENATE
AND ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A  REPORT
REGARDING  THE  PROGRESS OF EACH RETAIL ELECTRIC SUPPLIER IN MEETING ITS
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B) EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION  THE
INFORMATION  NECESSARY  TO FULFILL THE COMMISSION'S OBLIGATIONS PURSUANT
TO THIS SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL  REPORTING  OBLIGATION
AND PROCESS TO BE ESTABLISHED BY THE COMMISSION.
  (C)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC  SUPPLIER
FOR  THE  PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL CALENDAR YEARS
TO DATE: (I) THE ACTUAL NUMBER  OF  MEGAWATT-HOURS  OF  QUALIFIED  SOLAR
ENERGY  GENERATION  SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS AND THE
TOTAL NUMBER OF MEGAWATT-HOURS  SOLD  AT  RETAIL  TO  NEW  YORK  END-USE
CUSTOMERS;  (II)  THE  NUMBER  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR
ENERGY GENERATION THAT WERE RETIRED FOR  THE  PURPOSES  OF  MEETING  THE
SUPPLIER'S  OBLIGATIONS  ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION;
(III) THE AMOUNT, IF ANY, OF SOLAR ALTERNATIVE COMPLIANCE PAYMENTS MADE;
AND (IV) ITS ANNUAL RETAIL ELECTRICITY SALES  REVENUE  AND  EXPENDITURES
FOR THE PROCUREMENT OF SRECS MADE FOR THE PURPOSES OF MEETING THE APPLI-
CABLE  ANNUAL  REQUIREMENT,  PROVIDED THAT SUCH INFORMATION NEED ONLY BE
REPORTED FOR THE  PREVIOUS  CALENDAR  YEAR.    SUCH  REPORT  SHALL  ALSO
INCLUDE,  FOR EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIB-
UTION COMPANY: (1) THE NUMBER OF SRECS EACH ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIBUTED  SOLAR  ENERGY

A. 5713                             7

GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN FIFTY-ONE AND TWO
HUNDRED FIFTY KILOWATTS IN SIZE  AND  RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (2) THE
NUMBER  OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE AGREEMENTS AND THE
ELECTRIC DISTRIBUTION COMPANY'S  OWNERSHIP  OF  QUALIFIED  SOLAR  ENERGY
GENERATION EQUIPMENT, RESPECTIVELY; AND (3) THE AMOUNT PAID TO QUALIFIED
SOLAR ENERGY GENERATORS THROUGH TARIFFS ESTABLISHED PURSUANT TO SUBDIVI-
SION  SEVEN  OF  THIS  SECTION  FOR  SRECS  ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR 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 THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (2)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL
BOUNDARIES  OF  THE  STATE  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
THAT IS NOT SUBJECT TO A POWER PURCHASE AGREEMENT;
  (3) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (4) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (5)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (6)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (7)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  B. (1) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.25%
  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%
  (2) AT LEAST TWENTY PERCENT OF THE ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED

A. 5713                             8

WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT  LEAST  AN
ADDITIONAL  THIRTY  PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN THIS
PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED  WITH
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY
SIZE.
  (3) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (4) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN  THIS  PARA-
GRAPH  THROUGH  THE  PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  C. (1) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER  CLASSES  SUBJECT  TO COST-EFFECTIVENESS CONSIDERATIONS.   A SEPARATE
SOLICITATION PROCESS SHALL BE CONDUCTED FOR  THE  PROCUREMENT  OF  SRECS
ASSOCIATED  WITH  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY  KILOWATTS  IN
SIZE.
  (2) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (3) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN PARAGRAPH B  OF  THIS
SUBDIVISION.
  D.  (1)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, MAJORITY LEADER OF THE SENATE, AND CHAIRS OF  THE  SENATE  AND
ASSEMBLY  ENERGY  COMMITTEES,  AND  SHALL  POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED  IN  PARA-
GRAPH B OF THIS SUBDIVISION.
  (2)  EACH  REPORT  THAT  SHALL BE SUBMITTED PURSUANT TO THIS PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH

A. 5713                             9

B OF THIS SUBDIVISION; (II) THE NUMBER OF  SUCH  SRECS  EACH  ASSOCIATED
WITH  SMALL  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT OF ANY SIZE THAT WERE
PROCURED; AND (III) THE NUMBER OF  SUCH  SRECS  PROCURED  THROUGH  SOLAR
PURCHASE  AGREEMENTS  AND  THE  AUTHORITY'S OWNERSHIP OF QUALIFIED SOLAR
ENERGY GENERATION EQUIPMENT, RESPECTIVELY.
  S 5. Sections 1020-hh, 1020-ii and 1020-jj of the  public  authorities
law,  as  renumbered  by chapter 433 of the laws of 2009, are renumbered
sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
to read as follows:
  S 1020-HH. PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1.  AS  USED
IN THIS SECTION:
  (A)  "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A PHOTOVOLTAIC
DEVICE THAT DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF  A  BUILDING
INCLUDING  INTEGRATED  ROOF  COVER,  FACADE OR BUILDING CLADDING, GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES AND SKYLIGHTS;
  (B) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (C)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS PLACED IN SERVICE WITHIN THE  JURISDICTIONAL
BOUNDARIES  OF  THE  STATE  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
THAT IS NOT SUBJECT TO A POWER PURCHASE AGREEMENT;
  (D) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (E) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (F)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (G)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (H)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.25%
  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%

A. 5713                            10

  2023                3.00%
  2024                3.50%
  2025                4.50%
  (B)  AT  LEAST  TWENTY PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST
AN  ADDITIONAL  THIRTY  PERCENT  OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED  WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIP-
MENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS  SUBDI-
VISION  THROUGH  THE PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  3. (A) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER  CLASSES  SUBJECT  TO COST-EFFECTIVENESS CONSIDERATIONS.   A SEPARATE
SOLICITATION PROCESS SHALL BE CONDUCTED FOR  THE  PROCUREMENT  OF  SRECS
ASSOCIATED  WITH  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY  KILOWATTS  IN
SIZE.
  (B) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (C) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN  SUBDIVISION  TWO  OF
THIS SECTION.
  4.  NO  LATER  THAN  JANUARY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY
SHALL ESTABLISH A TARIFF THAT IT SHALL PAY TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS WITH WHICH THE AUTHORITY ENTERS  INTO  SOLAR  PURCHASE
AGREEMENTS  FOR  THE  PROCUREMENT  OF SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION FOR THE  PURPOSE  OF  ACHIEVING  THE
AUTHORITY'S  OBLIGATIONS PERTAINING TO SRECS ASSOCIATED WITH SUCH GENER-
ATION ESTABLISHED IN SUBDIVISION TWO  OF  THIS  SECTION.  THE  AUTHORITY

A. 5713                            11

SHALL  ESTABLISH  A SEPARATE TARIFF FOR THE PROCUREMENT OF SRECS ASSOCI-
ATED WITH SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  THAT  IS
PRODUCED  BY  BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT, WHICH SHALL BE
EQUIVALENT  TO  ONE HUNDRED TWENTY-FIVE PERCENT OF THE TARIFF APPLICABLE
TO SRECS ASSOCIATED WITH OTHER SOURCES OF SMALL RETAIL DISTRIBUTED SOLAR
ENERGY GENERATION. THE AUTHORITY SHALL REVIEW  SUCH  TARIFFS  EVERY  TWO
YEARS  AND  ADJUST AS NECESSARY TO ACHIEVE ITS OBLIGATIONS PERTAINING TO
SRECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR  ENERGY  GENERATION
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  5.  (A)  IF  THE AUTHORITY DETERMINES THAT ITS ANNUAL EXPENDITURES FOR
THE PROCUREMENT OF SRECS, MADE FOR THE PURPOSES OF  MEETING  THE  ANNUAL
REQUIREMENT  SET  FORTH  IN  PARAGRAPH  (A)  OF  SUBDIVISION TWO OF THIS
SECTION FOR A COMPLIANCE YEAR, EXCEEDS ONE AND ONE-HALF PERCENT  OF  ITS
ANNUAL  RETAIL  ELECTRICITY  REVENUES FOR SUCH COMPLIANCE YEAR, THEN THE
ANNUAL REQUIREMENT FOR THE COMPLIANCE YEAR FOR WHICH THE AUTHORITY MAKES
ITS DETERMINATION SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE
IN EACH  SUBSEQUENT  COMPLIANCE  YEAR  UNTIL  THIS  LIMITATION  ENDS  AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION  BY  THE  AUTHORITY
THAT  ITS  ANNUAL  EXPENDITURE FOR THE PROCUREMENT OF SRECS MADE FOR THE
PURPOSES OF MEETING ITS ANNUAL REQUIREMENT FOR A COMPLIANCE YEAR DID NOT
EXCEED ONE AND ONE-HALF PERCENT OF ITS ANNUAL RETAIL ELECTRICITY  REVEN-
UES  FOR  SUCH  COMPLIANCE  YEAR.  FOR  THE  COMPLIANCE YEAR IMMEDIATELY
FOLLOWING THE END OF THE LIMITATION  PURSUANT  TO  THIS  PARAGRAPH,  THE
APPLICABLE  ANNUAL  REQUIREMENT  SHALL  BE  THE REQUIREMENT SET FORTH IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH  THE  LIMITATION  IN
PARAGRAPH  (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL REQUIREMENT
SHALL CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR  IN  PARAGRAPH
(A)  OF  SUBDIVISION  TWO OF THIS SECTION FOR EACH SUBSEQUENT YEAR UNTIL
THE ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH  IN  SUCH  PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  6.  (A)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE
AND  ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN  SUBDI-
VISION TWO OF THIS SECTION.
  (B)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN  SUBDIVI-
SION  TWO OF THIS SECTION; (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIB-
UTED  SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT THAT IS BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT  OF  ANY  SIZE  THAT  WERE
PROCURED; (III) THE NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE
AGREEMENTS  AND  THE  AUTHORITY'S  OWNERSHIP  OF  QUALIFIED SOLAR ENERGY
GENERATION EQUIPMENT, RESPECTIVELY; (IV) THE AMOUNT  PAID  TO  QUALIFIED
SOLAR  ENERGY GENERATORS FOR SRECS ASSOCIATED WITH SMALL RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION THROUGH THE TARIFFS ESTABLISHED PURSUANT TO
SUBDIVISION FOUR OF THIS SECTION; AND (V) THE ANNUAL RETAIL  ELECTRICITY

A. 5713                            12

SALES REVENUE AND EXPENDITURES MADE FOR THE PROCUREMENT OF SRECS FOR THE
PURPOSE OF MEETING THE APPLICABLE ANNUAL REQUIREMENT, PROVIDED THAT SUCH
INFORMATION NEED ONLY BE REPORTED FOR THE PREVIOUS CALENDAR YEAR.
  S  6. If any provision of this act is, for any reason, declared uncon-
stitutional or invalid, in whole or in part, by any court  of  competent
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 chairman of
the  public  service  commission  notifies the legislative bill drafting
commission of the occurrence of the implementation  of  a  substantially
similar federal program.

Co-Sponsors

Multi-Sponsors

A5713A - Details

Law Section:: Public Service Law
Laws Affected:: Add §66-m, Pub Serv L; amd §§1005 & ren §§1020-hh - 1020-jj to be §§1020-ii - 1020-kk, add §1020-hh, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:: A11004

A5713A - Summary

Creates the New York solar industry development and jobs act; relates to procurement of solar renewable energy credits; establishes schedule with annual percentages to be met for compliance years.

A5713A - Bill Text download pdf

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

                                 5713--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 25, 2011
                               ___________

Introduced by M. of A. ENGLEBRIGHT, CAHILL, SCHIMEL, BRENNAN, ROSENTHAL,
  CRESPO,  LIFTON, COLTON, LUPARDO, PAULIN, HOYT, LATIMER, GALEF, DINOW-
  ITZ, LINARES, MOYA,  RUSSELL,  JAFFEE,  P. RIVERA,  SPANO,  SCHROEDER,
  ABINANTI,  THIELE,  WEISENBERG, BENEDETTO, ROBERTS, GUNTHER, MAISEL --
  Multi-Sponsored by -- M. of A. BING, BOYLE, CASTELLI, CERETTO,  CONTE,
  CYMBROWITZ, GLICK, HEASTIE, KATZ, LENTOL, McDONOUGH, McENENY, MILLMAN,
  MONTESANO, MURRAY, RAIA, REILLY, SALADINO, SAYWARD, SCHIMMINGER, SWEE-
  NEY,  WRIGHT  --  read  once and referred to the Committee on Ways and
  Means -- reference changed to the Committee on Energy -- reported  and
  referred  to  the Committee on Ways and Means -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN  ACT  to amend the public service law and the public authorities law,
  in relation to the creation of the New York solar industry development
  and jobs act of 2011 and the procurement  of  solar  renewable  energy
  credits;  and providing for the repeal of such provisions upon expira-
  tion thereof

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

  Section  1.  Legislative  intent  and purpose. It is the intent of the
legislature to enable the rapid and sustainable development of a  robust
solar  power  industry  in  New York by creating a scalable, diverse and
competitive solar energy market.  By tapping into the  state's  abundant
solar  energy  resources, it is the further intent of the legislature to
harness the multiple benefits associated with  the  generation  of  such
clean  power,  including the significant creation of much needed jobs, a
reduction of the long-term  costs  of  electricity  generation  for  New
York's  energy  consumers, including transmission and distribution costs
that continue to accelerate in proportion to overall electricity  supply
costs  for  the  residents  of  this state, increased reliability of the
state's electric grid, and a decrease in the  emission  of  harmful  air

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08692-03-1

A. 5713--A                          2

pollution, including localized emissions from "peaker" plants and green-
house  gas  emissions.  By  establishing  such  a program, New York will
create a solar energy enterprise that will elevate the state to be among
the world's cutting edge clean energy industry leaders, while helping to
secure increased economic development for New Yorkers.
  S  2.  Short  title.   This act shall be known and may be cited as the
"New York solar industry development and jobs act of 2011".
  S 3. The public service law is amended by adding a new section 66-m to
read as follows:
  S 66-M. PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1. AS  USED  IN
THIS SECTION:
  (A)  "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A PHOTOVOLTAIC
DEVICE THAT DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF  A  BUILDING
INCLUDING  INTEGRATED  ROOF  COVER,  FACADE OR BUILDING CLADDING, GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES, AND SKYLIGHTS;
  (B) "ELECTRIC DISTRIBUTION COMPANY" MEANS  AN  INVESTOR-OWNED  UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE;
  (C)  "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE  PHOTOVOLTAIC
EFFECT,  WHETHER  OR  NOT THE DEVICE IS COUPLED WITH A DEVICE CAPABLE OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (D) "QUALIFIED SOLAR ENERGY GENERATION" MEANS  POWER  GENERATED  BY  A
PHOTOVOLTAIC  DEVICE  THAT IS CONNECTED TO THE DISTRIBUTION SYSTEM OF AN
ELECTRIC DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN;
  (E) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (F) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (G)  "RETAIL  ELECTRIC  SUPPLIER"  MEANS  AN ENTITY AUTHORIZED TO SELL
ELECTRICITY AT RETAIL TO END-USE CUSTOMERS IN THIS STATE,  INCLUDING  AN
ELECTRIC  DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR AN
ENERGY SERVICE COMPANY LICENSED BY THE COMMISSION FOR SUCH PURPOSE;
  (H) "SMALL RETAIL DISTRIBUTED SOLAR ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (I) "SOLAR ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT  OF  A
CERTAIN  DOLLAR  AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE COMMIS-
SION, THAT A RETAIL ELECTRIC SUPPLIER MAY SUBMIT TO  THE  COMMISSION  IN
ORDER  TO  COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN SUBDIVISION
TWO OF THIS SECTION;
  (J) "SOLAR PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR  A  MINIMUM  OF
FIFTEEN  YEARS,  FOR THE PURCHASE OF SRECS FROM A QUALIFIED SOLAR ENERGY
GENERATOR; AND
  (K) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION.
  2. (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE, AT  MINI-
MUM,  SRECS  TO  MEET THE FOLLOWING PERCENTAGES OF SUCH SUPPLIER'S TOTAL
ELECTRIC SALES IN EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.15%
  2014                0.20%

A. 5713--A                          3

  2015                0.30%
  2016                0.50%
  2017                0.75%
  2018                1.00%
  2019                1.25%
  2020                1.50%
  2021                1.80%
  2022                2.10%
  2023                2.40%
  2024                2.70%
  2025                3.00%
  (B)  AT  LEAST  TWENTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO
EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY
SHALL  BE  MET  THROUGH  THE  PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST  AN  ADDITIONAL
THIRTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY  SHALL  BE  MET
THROUGH  THE  PROCUREMENT  OF  SRECS  ASSOCIATED WITH RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR  OBLIGATIONS  ESTABLISHED
BY  THE  COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT
OF SRECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED  QUALIFIED  SOLAR
ENERGY GENERATION.
  (E) WITHIN THREE MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE NEW
YORK  STATE  ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, IN CONSULTATION
WITH THE COMMISSION, SHALL ESTABLISH AN AUTOMATED GENERATION ATTRIBUTION
TRACKING SYSTEM CAPABLE OF TRACKING SRECS.
  (F) SRECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS  ESTAB-
LISHED  IN  THIS  SUBDIVISION  IN  THE COMPLIANCE YEAR IN WHICH THEY ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  3. (A) IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT  MEET  THEIR
OBLIGATIONS  ESTABLISHED  IN SUBDIVISION TWO OF THIS SECTION, THEY SHALL
BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING A SOLAR 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 SOLAR ENERGY GENERATION
EQUIPMENT  NECESSARY  TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVI-
SION TWO OF THIS SECTION.
  (B) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE,  THE  COMMISSION
SHALL  ESTABLISH A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE THROUGH
THE YEAR TWO THOUSAND TWENTY-FIVE, AND SHALL ANNUALLY REVIEW SUCH SCHED-
ULE TO ENSURE THAT THE PAYMENTS ARE SET AT  A  LEVEL  TO  STIMULATE  THE
DEVELOPMENT  OF  NEW  QUALIFIED  SOLAR  ENERGY  GENERATION EQUIPMENT, IN
ACCORDANCE WITH THE PREVIOUS SUBDIVISION. ONCE SUCH SCHEDULE  IS  ESTAB-
LISHED,  THE COMMISSION MAY ADOPT, AFTER APPROPRIATE NOTICE AND OPPORTU-
NITY FOR PUBLIC COMMENT, AN INCREASE IN ALTERNATIVE COMPLIANCE PAYMENTS,
PROVIDED THAT THE COMMISSION SHALL  NOT  REDUCE  PREVIOUSLY  ESTABLISHED
LEVELS  OF  PAYMENTS,  NOR  SHALL THE COMMISSION PROVIDE RELIEF FROM THE
OBLIGATION OF PAYMENT OF THE SOLAR 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 SOLAR  INITI-

A. 5713--A                          4

ATIVES  TO BE DEVELOPED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVEL-
OPMENT AUTHORITY.
  4.  (A)  NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMIS-
SION SHALL ESTABLISH A TEMPLATE FOR SOLAR PURCHASE AGREEMENTS TO BE USED
BY RETAIL ELECTRIC SUPPLIERS THAT ARE  ELECTRIC  DISTRIBUTION  COMPANIES
FOR THEIR PROCUREMENT OF SRECS FOR THE PURPOSE OF FULFILLING THEIR OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL, NOT LATER THAN JULY FIRST, TWO  THOUSAND  TWELVE,  SUBMIT
FOR  COMMISSION REVIEW AND APPROVAL A SOLAR SOLICITATION PLAN THAT SHALL
INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS  FOR  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING  ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. THE
ELECTRIC  DISTRIBUTION  COMPANY'S  SOLAR  SOLICITATION  PLAN  SHALL   BE
DESIGNED  TO FOSTER A DIVERSITY OF SOLAR PROJECT SIZES AND PARTICIPATION
AMONG  ALL  ELIGIBLE  CUSTOMER  CLASSES  SUBJECT  TO  COST-EFFECTIVENESS
CONSIDERATIONS.   A SEPARATE SOLICITATION PROCESS SHALL BE CONDUCTED FOR
THE PROCUREMENTS OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENER-
GY GENERATION PRODUCED BY EQUIPMENT THAT IS BETWEEN  FIFTY-ONE  AND  TWO
HUNDRED FIFTY KILOWATTS IN SIZE.
  (C)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL EXECUTE ITS APPROVED  SOLICITATION  PLAN  AND  SUBMIT  FOR
COMMISSION  REVIEW  AND  APPROVAL  ITS  PREFERRED SOLAR PROCUREMENT PLAN
COMPRISED OF PROPOSED SOLAR PURCHASE  AGREEMENTS  FOR  SRECS  ASSOCIATED
WITH  QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIB-
UTED SOLAR 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 SOLAR PROCUREMENT PLAN WOULD RESULT IN THE
ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO  THE
PROCUREMENT  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION
OTHER THAN SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  AT  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 JULY FIRST, TWO THOUSAND TWELVE, EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY SHALL  SUBMIT  TO
THE COMMISSION FOR REVIEW AND APPROVAL A PLAN FOR THE ACHIEVEMENT OF ITS
OBLIGATION  PERTAINING TO THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  ESTABLISHED  IN  SUBDIVISION
TWO OF THIS SECTION.
  5.  EACH  RETAIL  ELECTRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE ENTITLED TO RECOVER THE  PRUDENTLY  INCURRED  COSTS  OF
COMPLYING  WITH  ITS  OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS
SECTION, AS DETERMINED BY THE COMMISSION. ALL SUCH COSTS SHALL BE RECOV-
ERED THROUGH THE SUPPLY PORTION OF EACH ELECTRIC CUSTOMER'S  BILL  IN  A
COMPETITIVELY NEUTRAL MANNER.
  6. NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE COMMISSION SHALL
ESTABLISH  AN  INCENTIVE  PROGRAM FOR RETAIL ELECTRIC SUPPLIERS THAT ARE
ELECTRIC DISTRIBUTION COMPANIES BASED ON SUCH COMPANIES' ACHIEVEMENT  OF
THEIR  OBLIGATIONS,  AND  EXEMPLARY PERFORMANCE BEYOND SUCH OBLIGATIONS,

A. 5713--A                          5

ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION (I) IN  A  COST-EFFECTIVE
MANNER  THAT ACHIEVES THE OBLIGATIONS AT LEAST COST AND AVOIDS LONG-TERM
COSTS  TO  THE  TRANSMISSION  AND  DISTRIBUTION  SYSTEM;  (II)  PROVIDES
ENHANCED  ELECTRICITY RELIABILITY WITHIN COMPANIES' SERVICE TERRITORIES;
AND (III) MINIMIZES PEAK LOAD IN CONSTRAINED AREAS.
  7. NO LATER THAN JANUARY FIRST, TWO THOUSAND  TWELVE,  THE  COMMISSION
SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, ESTABLISH THE TERMS AND CONDITIONS THAT SHALL  BE
APPLICABLE  TO SOLAR PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC
SUPPLIERS THAT ARE ELECTRIC DISTRIBUTION COMPANIES FOR  THE  PROCUREMENT
OF  SRECS  ASSOCIATED  WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' OBLIGATIONS PERTAIN-
ING TO SRECS ASSOCIATED WITH SUCH GENERATION ESTABLISHED IN  SUBDIVISION
TWO  OF THIS SECTION.  SUCH TERMS AND CONDITIONS SHALL INCLUDE A TARIFF,
AS ESTABLISHED BY THE COMMISSION IN CONJUNCTION WITH THE NEW YORK  STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, TO  BE
PAID  BY  ELECTRIC  DISTRIBUTION COMPANIES TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS. THE COMMISSION, IN  CONJUNCTION  WITH  THE  NEW  YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT AUTHORITY, SHALL CONSIDER COST
DIFFERENCES BETWEEN  VARIOUS  MARKET  SEGMENTS,  INCLUDING  RESIDENTIAL,
COMMERCIAL  AND NOT-FOR-PROFIT, AND APPLICATIONS, SUCH AS BUILDING INTE-
GRATED PHOTOVOLTAIC EQUIPMENT, AS WELL AS AVAILABLE FEDERAL  TAX  INCEN-
TIVES;  AND  SHALL  DETERMINE WHETHER SUCH COST DIFFERENCES ARE MATERIAL
SUCH THAT MARKET OR APPLICATION SPECIFIC TARIFFS  ARE  WARRANTED.    THE
COMMISSION,  IN  CONJUNCTION WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, SHALL, AT LEAST ANNUALLY, REVIEW SUCH TARIFFS AND
ADJUST AS NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO SRECS ASSO-
CIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED
IN SUBDIVISION TWO OF THIS SECTION.  THE COMMISSION MAY ALSO  INSTITUTE,
AFTER  NOTICE  AND OPPORTUNITY FOR PUBLIC INPUT, A MECHANISM THAT ALLOWS
FOR ADJUSTMENT TO THE TARIFF RATE BASED ON ELECTRIC DISTRIBUTION  COMPA-
NIES'  PROCUREMENT  OF  SRECS,  RELATIVE TO THE ANNUAL TARGETS FOR SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION. ANY SUCH  ADJUSTMENTS  SHALL
BE  APPLIED PROSPECTIVELY, AND SHALL NOT AFFECT THE TARIFF RATE OF SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ALREADY ENROLLED.
  8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY  ENTERED  INTO  BEFORE
JANUARY FIRST, TWO THOUSAND TWELVE 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 THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO RESELL OR OTHERWISE DISPOSE OF  SRECS  AND
ANY ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION PROCURED BY SUCH COMPA-
NY  THAT  IS IN EXCESS OF ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO
OF THIS SECTION, PROVIDED THE COMPANY SHALL NET  THE  COST  OF  PAYMENTS
MADE  FOR  SRECS  AND  ANY  ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION
UNDER SOLAR PURCHASE AGREEMENTS AGAINST THE  PROCEEDS  OF  THE  SALE  OF
SRECS  AND  ANY  ASSOCIATED  QUALIFIED  SOLAR 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) WITHIN THIRTY DAYS OF THE SUBMISSION OF THE ANNUAL  COMPLIANCE
REPORTS FILED BY RETAIL ELECTRIC SUPPLIERS PURSUANT TO SUBDIVISION ELEV-
EN  OF  THIS  SECTION, THE COMMISSION SHALL DETERMINE THE COMBINED TOTAL
ANNUAL EXPENDITURES FOR THE PROCUREMENT OF SRECS MADE BY RETAIL ELECTRIC
SUPPLIERS FOR THE PURPOSES OF MEETING THE ANNUAL REQUIREMENT  SET  FORTH

A. 5713--A                          6

IN  PARAGRAPH  (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE APPLICABLE
COMPLIANCE YEAR AS A PERCENTAGE OF THE TOTAL  RETAIL  ELECTRICITY  SALES
REVENUES FOR RETAIL ELECTRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. IF SUCH
PERCENTAGE EXCEEDS ONE AND ONE-HALF PERCENT, THEN THE ANNUAL REQUIREMENT
FOR THE COMPLIANCE YEAR FOR WHICH THE COMMISSION MAKES ITS DETERMINATION
SHALL  CONTINUE  TO  BE THE ANNUAL REQUIREMENT APPLICABLE IN EACH SUBSE-
QUENT COMPLIANCE YEAR UNTIL THIS LIMITATION ENDS AS  PROVIDED  IN  PARA-
GRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION BY THE  COMMISSION,
BASED  UPON A REVIEW OF THE RETAIL ELECTRIC SUPPLIERS' ANNUAL COMPLIANCE
REPORTS, THAT THE COMBINED TOTAL ANNUAL EXPENDITURES FOR THE PROCUREMENT
OF SRECS MADE BY RETAIL ELECTRIC SUPPLIERS TO MEET THE APPLICABLE ANNUAL
REQUIREMENT FOR A COMPLIANCE  YEAR  DID  NOT  EXCEED  ONE  AND  ONE-HALF
PERCENT  OF THE TOTAL RETAIL ELECTRICITY SALES REVENUES FOR RETAIL ELEC-
TRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. FOR THE COMPLIANCE  YEAR  IMME-
DIATELY  FOLLOWING THE END OF THE LIMITATION PURSUANT TO THIS PARAGRAPH,
THE APPLICABLE ANNUAL REQUIREMENT SHALL BE THE REQUIREMENT SET FORTH  IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY  FOLLOWING  THE  COMPLIANCE YEAR FOR WHICH THE LIMITATION IN
PARAGRAPH (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL  REQUIREMENT
SHALL  CONTINUE  TO INCREASE IN THE INCREMENTS PROVIDED FOR IN PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION FOR EACH  SUBSEQUENT  YEAR  UNTIL
THE  ANNUAL  REQUIREMENT  REACHES THE PERCENTAGE SET FORTH IN SUCH PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  (C) SOLAR ALTERNATIVE COMPLIANCE  PAYMENTS  MADE  BY  RETAIL  ELECTRIC
SUPPLIERS  PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL NOT COUNT
TOWARDS THE ANNUAL EXPENDITURE LIMITATIONS SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  11. (A) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO  LATER
THAN  JULY  FIRST  OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND
TWENTY-SIX THE COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAKER  OF  THE
ASSEMBLY,  TEMPORARY  PRESIDENT  OF THE SENATE, AND CHAIRS OF THE SENATE
AND ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A  REPORT
REGARDING  THE  PROGRESS OF EACH RETAIL ELECTRIC SUPPLIER IN MEETING ITS
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B) EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION  THE
INFORMATION  NECESSARY  TO FULFILL THE COMMISSION'S OBLIGATIONS PURSUANT
TO THIS SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL  REPORTING  OBLIGATION
AND PROCESS TO BE ESTABLISHED BY THE COMMISSION.
  (C)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC  SUPPLIER
FOR  THE  PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL CALENDAR YEARS
TO DATE: (I) THE ACTUAL NUMBER  OF  MEGAWATT-HOURS  OF  QUALIFIED  SOLAR
ENERGY  GENERATION  SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS AND THE
TOTAL NUMBER OF MEGAWATT-HOURS  SOLD  AT  RETAIL  TO  NEW  YORK  END-USE
CUSTOMERS;  (II)  THE  NUMBER  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR
ENERGY GENERATION THAT WERE RETIRED FOR  THE  PURPOSES  OF  MEETING  THE
SUPPLIER'S  OBLIGATIONS  ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION;
(III) THE AMOUNT, IF ANY, OF SOLAR ALTERNATIVE COMPLIANCE PAYMENTS MADE;
AND (IV) ITS ANNUAL RETAIL ELECTRICITY SALES  REVENUE  AND  EXPENDITURES
FOR THE PROCUREMENT OF SRECS MADE FOR THE PURPOSES OF MEETING THE APPLI-
CABLE  ANNUAL  REQUIREMENT,  PROVIDED THAT SUCH INFORMATION NEED ONLY BE
REPORTED FOR THE  PREVIOUS  CALENDAR  YEAR.    SUCH  REPORT  SHALL  ALSO
INCLUDE,  FOR EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIB-
UTION COMPANY: (1) THE NUMBER OF SRECS EACH ASSOCIATED WITH SMALL RETAIL

A. 5713--A                          7

DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN FIFTY-ONE AND TWO
HUNDRED FIFTY KILOWATTS IN SIZE  AND  RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (2) THE
NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE AGREEMENTS; AND (3)
THE  AMOUNT  PAID  TO  QUALIFIED SOLAR ENERGY GENERATORS THROUGH TARIFFS
ESTABLISHED PURSUANT TO SUBDIVISION SEVEN  OF  THIS  SECTION  FOR  SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION.
  S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE  PHOTOVOLTAIC
EFFECT,  WHETHER  OR  NOT THE DEVICE IS COUPLED WITH A DEVICE CAPABLE OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (2) "QUALIFIED SOLAR ENERGY GENERATION" MEANS  POWER  GENERATED  BY  A
PHOTOVOLTAIC  DEVICE  THAT IS CONNECTED TO THE DISTRIBUTION SYSTEM OF AN
ELECTRIC DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN;
  (3) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (4) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (5)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (6)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (7)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  B. (1) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.33%
  2014                0.50%
  2015                0.75%
  2016                1.00%
  2017                1.25%
  2018                1.50%
  2019                1.75%
  2020                2.00%
  2021                2.30%
  2022                2.60%
  2023                2.90%
  2024                3.20%
  2025                3.50%
  (2) AT LEAST TWENTY PERCENT OF THE ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT  LEAST  AN

A. 5713--A                          8

ADDITIONAL  THIRTY  PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN THIS
PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED  WITH
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY
SIZE.
  (3) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (4)  THE  AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS PARA-
GRAPH THROUGH THE PROCUREMENT OF SRECS TOGETHER WITH  OR  SEPARATE  FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  C.  (1)  NO  LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY
SHALL SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY  PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES,  AND  SHALL  POST  ON  ITS WEBSITE, A SOLAR SOLICITATION PLAN THAT
SHALL INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING  PROPOSALS  FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER CLASSES SUBJECT TO COST-EFFECTIVENESS  CONSIDERATIONS.    A  SEPARATE
SOLICITATION  PROCESS  SHALL  BE  CONDUCTED FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  PRODUCED  BY
EQUIPMENT  THAT  IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN
SIZE.
  (2) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY  PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES,  AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT PLAN
COMPRISED OF ANY SOLAR PURCHASE AGREEMENTS  FOR  SRECS  ASSOCIATED  WITH
QUALIFIED  SOLAR  ENERGY  GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION. THE  COMPTROLLER  SHALL  REVIEW  SUCH  PLAN  TO
ASSESS  WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND TRANS-
PARENT PROCESS AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF  THE  ASSEM-
BLY,  TEMPORARY  PRESIDENT  OF  THE SENATE, AND CHAIRS OF THE SENATE AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (3) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT  OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL  POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION
PERTAINING TO THE PROCUREMENT OF  SRECS  ASSOCIATED  WITH  SMALL  RETAIL
DISTRIBUTED  SOLAR  ENERGY GENERATION ESTABLISHED IN PARAGRAPH B OF THIS
SUBDIVISION.
  D. (1) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND  NO  LATER
THAN  JULY  FIRST  OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND
TWENTY-SIX, THE AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER  OF  THE
ASSEMBLY,  MAJORITY  LEADER  OF THE SENATE, AND CHAIRS OF THE SENATE AND
ASSEMBLY ENERGY COMMITTEES, AND SHALL POST  ON  ITS  WEBSITE,  A  REPORT
REGARDING  ITS  PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN PARA-
GRAPH B OF THIS SUBDIVISION.
  (2) EACH REPORT THAT SHALL BE SUBMITTED  PURSUANT  TO  THIS  PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR  THE  TOTAL  OF  ALL CALENDAR YEARS TO DATE: (I) THE NUMBER OF SRECS
ASSOCIATED WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR  THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH
B  OF  THIS  SUBDIVISION;  (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED

A. 5713--A                          9

WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIB-
UTED  SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT THAT IS BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT OF ANY SIZE THAT WERE
PROCURED; AND (III) THE NUMBER OF  SUCH  SRECS  PROCURED  THROUGH  SOLAR
PURCHASE AGREEMENTS.
  S  5.  Sections 1020-hh, 1020-ii and 1020-jj of the public authorities
law, as renumbered by chapter 433 of the laws of  2009,  are  renumbered
sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
to read as follows:
  S  1020-HH. PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1.  AS USED
IN THIS SECTION:
  (A) "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A  PHOTOVOLTAIC
DEVICE  THAT  DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF A BUILDING
INCLUDING INTEGRATED ROOF COVER, FACADE  OR  BUILDING  CLADDING,  GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES AND SKYLIGHTS;
  (B)  "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE  PHOTOVOLTAIC
EFFECT,  WHETHER  OR  NOT THE DEVICE IS COUPLED WITH A DEVICE CAPABLE OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (C) "QUALIFIED SOLAR ENERGY GENERATION" MEANS  POWER  GENERATED  BY  A
PHOTOVOLTAIC  DEVICE  THAT IS CONNECTED TO THE DISTRIBUTION SYSTEM OF AN
ELECTRIC DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN;
  (D) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (E) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (F)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (G)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (H)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.33%
  2014                0.50%
  2015                0.75%
  2016                1.00%
  2017                1.25%
  2018                1.50%
  2019                1.75%
  2020                2.00%
  2021                2.30%
  2022                2.60%
  2023                2.90%
  2024                3.20%

A. 5713--A                         10

  2025                3.50%
  (B)  AT  LEAST  TWENTY PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST
AN  ADDITIONAL  THIRTY  PERCENT  OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED  WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIP-
MENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS  SUBDI-
VISION  THROUGH  THE PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  3. (A) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER  CLASSES  SUBJECT  TO COST-EFFECTIVENESS CONSIDERATIONS.   A SEPARATE
SOLICITATION PROCESS SHALL BE CONDUCTED FOR  THE  PROCUREMENT  OF  SRECS
ASSOCIATED  WITH  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY  KILOWATTS  IN
SIZE.
  (B) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (C) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN  SUBDIVISION  TWO  OF
THIS SECTION.
  4.  NO  LATER  THAN  JANUARY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY
SHALL ESTABLISH A TARIFF THAT IT SHALL PAY TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS WITH WHICH THE AUTHORITY ENTERS  INTO  SOLAR  PURCHASE
AGREEMENTS  FOR  THE  PROCUREMENT  OF SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION FOR THE  PURPOSE  OF  ACHIEVING  THE
AUTHORITY'S  OBLIGATIONS PERTAINING TO SRECS ASSOCIATED WITH SUCH GENER-
ATION ESTABLISHED IN SUBDIVISION TWO  OF  THIS  SECTION.  THE  AUTHORITY
SHALL CONSIDER COST DIFFERENCES BETWEEN VARIOUS MARKET SEGMENTS, INCLUD-
ING  RESIDENTIAL,  COMMERCIAL AND NOT-FOR-PROFIT, AND APPLICATIONS, SUCH

A. 5713--A                         11

AS BUILDING INTEGRATED PHOTOVOLTAIC  EQUIPMENT,  AS  WELL  AS  AVAILABLE
FEDERAL  TAX  INCENTIVES;  AND SHALL DETERMINE WHETHER SUCH COST DIFFER-
ENCES ARE MATERIAL SUCH THAT MARKET OR APPLICATION SPECIFIC TARIFFS  ARE
WARRANTED.   THE AUTHORITY SHALL, AT LEAST ANNUALLY, REVIEW SUCH TARIFFS
AND ADJUST AS NECESSARY TO ACHIEVE ITS OBLIGATIONS PERTAINING  TO  SRECS
ASSOCIATED  WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ESTAB-
LISHED IN SUBDIVISION TWO OF THIS SECTION.  THE AUTHORITY MAY INSTITUTE,
AFTER NOTICE AND OPPORTUNITY FOR PUBLIC INPUT, A MECHANISM  THAT  ALLOWS
FOR  ADJUSTMENT TO THE TARIFF RATE BASED ON THE LEVEL OF THE AUTHORITY'S
PROCUREMENT OF SRECS' RELATIVE TO ITS ANNUAL TARGETS  FOR  SMALL  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION.  ANY  SUCH  ADJUSTMENTS SHALL BE
APPLIED PROSPECTIVELY, AND SHALL NOT AFFECT THE  TARIFF  RATE  OF  SMALL
RETAIL DISTRIBUTED SOLAR GENERATION ALREADY ENROLLED.
  5.  (A)  IF  THE AUTHORITY DETERMINES THAT ITS ANNUAL EXPENDITURES FOR
THE PROCUREMENT OF SRECS, MADE FOR THE PURPOSES OF  MEETING  THE  ANNUAL
REQUIREMENT  SET  FORTH  IN  PARAGRAPH  (A)  OF  SUBDIVISION TWO OF THIS
SECTION FOR A COMPLIANCE YEAR, EXCEEDS ONE AND ONE-HALF PERCENT  OF  ITS
ANNUAL  RETAIL  ELECTRICITY  REVENUES FOR SUCH COMPLIANCE YEAR, THEN THE
ANNUAL REQUIREMENT FOR THE COMPLIANCE YEAR FOR WHICH THE AUTHORITY MAKES
ITS DETERMINATION SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE
IN EACH  SUBSEQUENT  COMPLIANCE  YEAR  UNTIL  THIS  LIMITATION  ENDS  AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION  BY  THE  AUTHORITY
THAT  ITS  ANNUAL  EXPENDITURE FOR THE PROCUREMENT OF SRECS MADE FOR THE
PURPOSES OF MEETING ITS ANNUAL REQUIREMENT FOR A COMPLIANCE YEAR DID NOT
EXCEED ONE AND ONE-HALF PERCENT OF ITS ANNUAL RETAIL ELECTRICITY  REVEN-
UES  FOR  SUCH  COMPLIANCE  YEAR.  FOR  THE  COMPLIANCE YEAR IMMEDIATELY
FOLLOWING THE END OF THE LIMITATION  PURSUANT  TO  THIS  PARAGRAPH,  THE
APPLICABLE  ANNUAL  REQUIREMENT  SHALL  BE  THE REQUIREMENT SET FORTH IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH  THE  LIMITATION  IN
PARAGRAPH  (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL REQUIREMENT
SHALL CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR  IN  PARAGRAPH
(A)  OF  SUBDIVISION  TWO OF THIS SECTION FOR EACH SUBSEQUENT YEAR UNTIL
THE ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH  IN  SUCH  PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  6.  (A)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE
AND  ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN  SUBDI-
VISION TWO OF THIS SECTION.
  (B)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN  SUBDIVI-
SION  TWO OF THIS SECTION; (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIB-
UTED  SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT THAT IS BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT  OF  ANY  SIZE  THAT  WERE
PROCURED; (III) THE NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE
AGREEMENTS;  (IV)  THE  AMOUNT PAID TO QUALIFIED SOLAR ENERGY GENERATORS

A. 5713--A                         12

FOR SRECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR  ENERGY  GENER-
ATION  THROUGH  THE  TARIFFS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF
THIS SECTION; AND (V) THE ANNUAL RETAIL ELECTRICITY  SALES  REVENUE  AND
EXPENDITURES  MADE FOR THE PROCUREMENT OF SRECS FOR THE PURPOSE OF MEET-
ING THE APPLICABLE ANNUAL REQUIREMENT, PROVIDED  THAT  SUCH  INFORMATION
NEED ONLY BE REPORTED FOR THE PREVIOUS CALENDAR YEAR.
  S  6. If any provision of this act is, for any reason, declared uncon-
stitutional or invalid, in whole or in part, by any court  of  competent
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 chairman of
the  public  service  commission  notifies the legislative bill drafting
commission of the occurrence of the implementation  of  a  substantially
similar federal program.

Co-Sponsors

Multi-Sponsors

A5713B - Details

Law Section:: Public Service Law
Laws Affected:: Add §66-m, Pub Serv L; amd §§1005 & ren §§1020-hh - 1020-jj to be §§1020-ii - 1020-kk, add §1020-hh, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:: A11004

A5713B - Summary

Creates the New York solar industry development and jobs act; relates to procurement of solar renewable energy credits; establishes schedule with annual percentages to be met for compliance years.

A5713B - Bill Text download pdf

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

                                 5713--B

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 25, 2011
                               ___________

Introduced by M. of A. ENGLEBRIGHT, CAHILL, SCHIMEL, BRENNAN, ROSENTHAL,
  CRESPO,  LIFTON, COLTON, LUPARDO, PAULIN, HOYT, LATIMER, GALEF, DINOW-
  ITZ, LINARES, MOYA,  RUSSELL,  JAFFEE,  P. RIVERA,  SPANO,  SCHROEDER,
  ABINANTI,  THIELE,  WEISENBERG,  BENEDETTO,  ROBERTS, GUNTHER, MAISEL,
  LAVINE, MARKEY -- Multi-Sponsored by -- M. of A. BING, BOYLE,  CASTEL-
  LI,   CERETTO,   CONTE,  CYMBROWITZ,  GLICK,  HEASTIE,  KATZ,  LENTOL,
  P. LOPEZ, McDONOUGH, McENENY, McKEVITT,  MILLMAN,  MONTESANO,  MURRAY,
  NOLAN,  RAIA,  REILLY, SALADINO, SAYWARD, SCHIMMINGER, SWEENEY, WRIGHT
  -- read once and referred to the Committee on Ways and Means -- refer-
  ence changed to the Committee on Energy -- reported  and  referred  to
  the Committee on Ways and Means -- committee discharged, bill amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  again reported from said committee with amendments, ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  to amend the public service law and the public authorities law,
  in relation to the creation of the New York solar industry development
  and jobs act of 2011 and the procurement  of  solar  renewable  energy
  credits;  and providing for the repeal of such provisions upon expira-
  tion thereof

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

  Section  1.  Legislative  intent  and purpose. It is the intent of the
legislature to enable the rapid and sustainable development of a  robust
solar  power  industry  in  New York by creating a scalable, diverse and
competitive solar energy market.  By tapping into the  state's  abundant
solar  energy  resources, it is the further intent of the legislature to
harness the multiple benefits associated with  the  generation  of  such
clean  power,  including the significant creation of much needed jobs, a
reduction of the long-term  costs  of  electricity  generation  for  New
York's  energy  consumers, including transmission and distribution costs
that continue to accelerate in proportion to overall electricity  supply

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08692-07-1

A. 5713--B                          2

costs  for  the  residents  of  this state, increased reliability of the
state's electric grid, and a decrease in the  emission  of  harmful  air
pollution, including localized emissions from "peaker" plants and green-
house  gas  emissions.  By  establishing  such  a program, New York will
create a solar energy enterprise that will elevate the state to be among
the world's cutting edge clean energy industry leaders, while helping to
secure increased economic development for New Yorkers.
  S 2. Short title.  This act shall be known and may  be  cited  as  the
"New York solar industry development and jobs act of 2011".
  S 3. The public service law is amended by adding a new section 66-m to
read as follows:
  S  66-M.  PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1. AS USED IN
THIS SECTION:
  (A) "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A  PHOTOVOLTAIC
DEVICE  THAT  DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF A BUILDING
INCLUDING INTEGRATED ROOF COVER, FACADE  OR  BUILDING  CLADDING,  GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES, AND SKYLIGHTS;
  (B)  "ELECTRIC  DISTRIBUTION  COMPANY" MEANS AN INVESTOR-OWNED UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE;
  (C) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (D)  "PREVAILING  RATE  OF  WAGES" SHALL HAVE THE SAME MEANING AS SUCH
TERM IS DEFINED IN PARAGRAPH  A  OF  SUBDIVISION  FIVE  OF  SECTION  TWO
HUNDRED TWENTY OF THE LABOR LAW;
  (E)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS CONNECTED TO THE DISTRIBUTION SYSTEM  OF  AN
ELECTRIC DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN;
  (F)  "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (G) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE  THAT  IS  INTERCON-
NECTED  TO  THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF THE ELECTRIC
DISTRIBUTION COMPANY METER;
  (H) "RETAIL ELECTRIC SUPPLIER" MEANS  AN  ENTITY  AUTHORIZED  TO  SELL
ELECTRICITY  AT  RETAIL TO END-USE CUSTOMERS IN THIS STATE, INCLUDING AN
ELECTRIC DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR  AN
ENERGY SERVICE COMPANY LICENSED BY THE COMMISSION FOR SUCH PURPOSE;
  (I)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (J)  "SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT OF A
CERTAIN DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY  THE  COMMIS-
SION,  THAT  A  RETAIL ELECTRIC SUPPLIER MAY SUBMIT TO THE COMMISSION IN
ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED  IN  SUBDIVISION
TWO OF THIS SECTION;
  (K)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (L)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.

A. 5713--B                          3

  2.  (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE, AT MINI-
MUM, SRECS TO MEET THE FOLLOWING PERCENTAGES OF  SUCH  SUPPLIER'S  TOTAL
ELECTRIC SALES IN EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.15%
  2014                0.20%
  2015                0.30%
  2016                0.50%
  2017                0.75%
  2018                1.00%
  2019                1.25%
  2020                1.50%
  2021                1.80%
  2022                2.10%
  2023                2.40%
  2024                2.70%
  2025                3.00%
  (B)  AT  LEAST  TWENTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO
EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY
SHALL  BE  MET  THROUGH  THE  PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST  AN  ADDITIONAL
THIRTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY  SHALL  BE  MET
THROUGH  THE  PROCUREMENT  OF  SRECS  ASSOCIATED WITH RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR  OBLIGATIONS  ESTABLISHED
BY  THE  COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT
OF SRECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED  QUALIFIED  SOLAR
ENERGY GENERATION.
  (E) WITHIN THREE MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE NEW
YORK  STATE  ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, IN CONSULTATION
WITH THE COMMISSION, SHALL ESTABLISH AN AUTOMATED GENERATION ATTRIBUTION
TRACKING SYSTEM CAPABLE OF TRACKING SRECS.
  (F) SRECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS  ESTAB-
LISHED  IN  THIS  SUBDIVISION  IN  THE COMPLIANCE YEAR IN WHICH THEY ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  3. (A) IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT  MEET  THEIR
OBLIGATIONS  ESTABLISHED  IN SUBDIVISION TWO OF THIS SECTION, THEY SHALL
BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING A SOLAR 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 SOLAR ENERGY GENERATION
EQUIPMENT  NECESSARY  TO ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVI-
SION TWO OF THIS SECTION.
  (B) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE,  THE  COMMISSION
SHALL  ESTABLISH A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE THROUGH
THE YEAR TWO THOUSAND TWENTY-FIVE, AND SHALL ANNUALLY REVIEW SUCH SCHED-
ULE TO ENSURE THAT THE PAYMENTS ARE SET AT  A  LEVEL  TO  STIMULATE  THE
DEVELOPMENT  OF  NEW  QUALIFIED  SOLAR  ENERGY  GENERATION EQUIPMENT, IN
ACCORDANCE WITH THE PREVIOUS SUBDIVISION. ONCE SUCH SCHEDULE  IS  ESTAB-
LISHED,  THE COMMISSION MAY ADOPT, AFTER APPROPRIATE NOTICE AND OPPORTU-
NITY FOR PUBLIC COMMENT, AN INCREASE IN ALTERNATIVE COMPLIANCE PAYMENTS,

A. 5713--B                          4

PROVIDED THAT THE COMMISSION SHALL  NOT  REDUCE  PREVIOUSLY  ESTABLISHED
LEVELS  OF  PAYMENTS,  NOR  SHALL THE COMMISSION PROVIDE RELIEF FROM THE
OBLIGATION OF PAYMENT OF THE SOLAR 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 SOLAR  INITI-
ATIVES  TO BE DEVELOPED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVEL-
OPMENT AUTHORITY.
  4. (A) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE,  THE  COMMIS-
SION SHALL ESTABLISH A TEMPLATE FOR SOLAR PURCHASE AGREEMENTS TO BE USED
BY  RETAIL  ELECTRIC  SUPPLIERS THAT ARE ELECTRIC DISTRIBUTION COMPANIES
FOR THEIR PROCUREMENT OF SRECS FOR THE PURPOSE OF FULFILLING THEIR OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B) EACH RETAIL ELECTRIC SUPPLIER THAT  IS  AN  ELECTRIC  DISTRIBUTION
COMPANY  SHALL,  NOT  LATER THAN JULY FIRST, TWO THOUSAND TWELVE, SUBMIT
FOR COMMISSION REVIEW AND APPROVAL A SOLAR SOLICITATION PLAN THAT  SHALL
INCLUDE  A  TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR SRECS
ASSOCIATED WITH QUALIFIED  SOLAR  ENERGY  GENERATION  OTHER  THAN  SMALL
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  THE
ELECTRIC   DISTRIBUTION  COMPANY'S  SOLAR  SOLICITATION  PLAN  SHALL  BE
DESIGNED TO FOSTER A DIVERSITY OF SOLAR PROJECT SIZES AND  PARTICIPATION
AMONG  ALL  ELIGIBLE  CUSTOMER  CLASSES  SUBJECT  TO  COST-EFFECTIVENESS
CONSIDERATIONS.  A SEPARATE SOLICITATION PROCESS SHALL BE CONDUCTED  FOR
THE PROCUREMENTS OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENER-
GY  GENERATION  PRODUCED  BY EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO
HUNDRED FIFTY KILOWATTS IN SIZE.
  (C) EACH RETAIL ELECTRIC SUPPLIER THAT  IS  AN  ELECTRIC  DISTRIBUTION
COMPANY  SHALL  EXECUTE  ITS  APPROVED  SOLICITATION PLAN AND SUBMIT FOR
COMMISSION REVIEW AND APPROVAL  ITS  PREFERRED  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  PROPOSED  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED
WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL RETAIL  DISTRIB-
UTED  SOLAR  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 SOLAR PROCUREMENT PLAN WOULD RESULT IN THE
ACHIEVEMENT  OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO THE
PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED SOLAR  ENERGY  GENERATION
OTHER  THAN  SMALL  RETAIL  DISTRIBUTED  SOLAR  ENERGY GENERATION AT 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 JULY FIRST, TWO THOUSAND TWELVE, EACH  RETAIL  ELEC-
TRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION COMPANY SHALL SUBMIT TO
THE COMMISSION FOR REVIEW AND APPROVAL A PLAN FOR THE ACHIEVEMENT OF ITS
OBLIGATION PERTAINING TO THE PROCUREMENT OF SRECS ASSOCIATED WITH  SMALL
RETAIL  DISTRIBUTED  SOLAR  ENERGY GENERATION ESTABLISHED IN SUBDIVISION
TWO OF THIS SECTION.
  5. EACH RETAIL ELECTRIC SUPPLIER  THAT  IS  AN  ELECTRIC  DISTRIBUTION
COMPANY  SHALL  BE  ENTITLED  TO RECOVER THE PRUDENTLY INCURRED COSTS OF
COMPLYING WITH ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION  TWO  OF  THIS
SECTION, AS DETERMINED BY THE COMMISSION. ALL SUCH COSTS SHALL BE RECOV-

A. 5713--B                          5

ERED  THROUGH  THE  SUPPLY PORTION OF EACH ELECTRIC CUSTOMER'S BILL IN A
COMPETITIVELY NEUTRAL MANNER.
  6. NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE COMMISSION SHALL
ESTABLISH  AN  INCENTIVE  PROGRAM FOR RETAIL ELECTRIC SUPPLIERS THAT ARE
ELECTRIC DISTRIBUTION COMPANIES BASED ON SUCH COMPANIES' ACHIEVEMENT  OF
THEIR  OBLIGATIONS,  AND  EXEMPLARY PERFORMANCE BEYOND SUCH OBLIGATIONS,
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION (I) IN  A  COST-EFFECTIVE
MANNER  THAT ACHIEVES THE OBLIGATIONS AT LEAST COST AND AVOIDS LONG-TERM
COSTS  TO  THE  TRANSMISSION  AND  DISTRIBUTION  SYSTEM;  (II)  PROVIDES
ENHANCED  ELECTRICITY RELIABILITY WITHIN COMPANIES' SERVICE TERRITORIES;
AND (III) MINIMIZES PEAK LOAD IN CONSTRAINED AREAS.
  7. NO LATER THAN JANUARY FIRST, TWO THOUSAND  TWELVE,  THE  COMMISSION
SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, ESTABLISH THE TERMS AND CONDITIONS THAT SHALL  BE
APPLICABLE  TO SOLAR PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC
SUPPLIERS THAT ARE ELECTRIC DISTRIBUTION COMPANIES FOR  THE  PROCUREMENT
OF  SRECS  ASSOCIATED  WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' OBLIGATIONS PERTAIN-
ING TO SRECS ASSOCIATED WITH SUCH GENERATION ESTABLISHED IN  SUBDIVISION
TWO  OF THIS SECTION.  SUCH TERMS AND CONDITIONS SHALL INCLUDE A TARIFF,
AS ESTABLISHED BY THE COMMISSION IN CONJUNCTION WITH THE NEW YORK  STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, TO  BE
PAID  BY  ELECTRIC  DISTRIBUTION COMPANIES TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS. THE COMMISSION, IN  CONJUNCTION  WITH  THE  NEW  YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT AUTHORITY, SHALL CONSIDER COST
DIFFERENCES BETWEEN  VARIOUS  MARKET  SEGMENTS,  INCLUDING  RESIDENTIAL,
COMMERCIAL  AND NOT-FOR-PROFIT, AND APPLICATIONS, SUCH AS BUILDING INTE-
GRATED PHOTOVOLTAIC EQUIPMENT, AS WELL AS AVAILABLE FEDERAL  TAX  INCEN-
TIVES;  AND  SHALL  DETERMINE WHETHER SUCH COST DIFFERENCES ARE MATERIAL
SUCH THAT MARKET OR APPLICATION SPECIFIC TARIFFS  ARE  WARRANTED.    THE
COMMISSION,  IN  CONJUNCTION WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, SHALL, AT LEAST ANNUALLY, REVIEW SUCH TARIFFS AND
ADJUST AS NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO SRECS ASSO-
CIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED
IN SUBDIVISION TWO OF THIS SECTION.  THE COMMISSION MAY ALSO  INSTITUTE,
AFTER  NOTICE  AND OPPORTUNITY FOR PUBLIC INPUT, A MECHANISM THAT ALLOWS
FOR ADJUSTMENT TO THE TARIFF RATE BASED ON ELECTRIC DISTRIBUTION  COMPA-
NIES'  PROCUREMENT  OF  SRECS,  RELATIVE TO THE ANNUAL TARGETS FOR SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION. ANY SUCH  ADJUSTMENTS  SHALL
BE  APPLIED PROSPECTIVELY, AND SHALL NOT AFFECT THE TARIFF RATE OF SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION ALREADY ENROLLED.
  8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY  ENTERED  INTO  BEFORE
JANUARY FIRST, TWO THOUSAND TWELVE 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 THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO RESELL OR OTHERWISE DISPOSE OF  SRECS  AND
ANY ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION PROCURED BY SUCH COMPA-
NY  THAT  IS IN EXCESS OF ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO
OF THIS SECTION, PROVIDED THE COMPANY SHALL NET  THE  COST  OF  PAYMENTS
MADE  FOR  SRECS  AND  ANY  ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION
UNDER SOLAR PURCHASE AGREEMENTS AGAINST THE  PROCEEDS  OF  THE  SALE  OF
SRECS  AND  ANY  ASSOCIATED  QUALIFIED  SOLAR ENERGY GENERATION, AND THE
DIFFERENCE SHALL BE CREDITED OR CHARGED  TO  THE  ELECTRIC  DISTRIBUTION

A. 5713--B                          6

COMPANY'S  CUSTOMERS  THROUGH A RECONCILING COMPONENT OF ELECTRIC RATES,
AS DETERMINED BY THE COMMISSION.
  10.  (A) WITHIN THIRTY DAYS OF THE SUBMISSION OF THE ANNUAL COMPLIANCE
REPORTS FILED BY RETAIL ELECTRIC SUPPLIERS PURSUANT TO SUBDIVISION ELEV-
EN OF THIS SECTION, THE COMMISSION SHALL DETERMINE  THE  COMBINED  TOTAL
ANNUAL EXPENDITURES FOR THE PROCUREMENT OF SRECS MADE BY RETAIL ELECTRIC
SUPPLIERS  FOR  THE PURPOSES OF MEETING THE ANNUAL REQUIREMENT SET FORTH
IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR  THE  APPLICABLE
COMPLIANCE  YEAR  AS  A PERCENTAGE OF THE TOTAL RETAIL ELECTRICITY SALES
REVENUES FOR RETAIL ELECTRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. IF SUCH
PERCENTAGE EXCEEDS ONE AND ONE-HALF PERCENT, THEN THE ANNUAL REQUIREMENT
FOR THE COMPLIANCE YEAR FOR WHICH THE COMMISSION MAKES ITS DETERMINATION
SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE  IN  EACH  SUBSE-
QUENT  COMPLIANCE  YEAR  UNTIL THIS LIMITATION ENDS AS PROVIDED IN PARA-
GRAPH (B) OF THIS SUBDIVISION.
  (B) IF THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF  THIS  SUBDIVI-
SION  IS TRIGGERED, IT SHALL END UPON A DETERMINATION BY THE COMMISSION,
BASED UPON A REVIEW OF THE RETAIL ELECTRIC SUPPLIERS' ANNUAL  COMPLIANCE
REPORTS, THAT THE COMBINED TOTAL ANNUAL EXPENDITURES FOR THE PROCUREMENT
OF SRECS MADE BY RETAIL ELECTRIC SUPPLIERS TO MEET THE APPLICABLE ANNUAL
REQUIREMENT  FOR  A  COMPLIANCE  YEAR  DID  NOT  EXCEED ONE AND ONE-HALF
PERCENT OF THE TOTAL RETAIL ELECTRICITY SALES REVENUES FOR RETAIL  ELEC-
TRIC  SUPPLIERS  FOR SUCH COMPLIANCE YEAR. FOR THE COMPLIANCE YEAR IMME-
DIATELY FOLLOWING THE END OF THE LIMITATION PURSUANT TO THIS  PARAGRAPH,
THE  APPLICABLE ANNUAL REQUIREMENT SHALL BE THE REQUIREMENT SET FORTH IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH  THE  LIMITATION  IN
PARAGRAPH  (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL REQUIREMENT
SHALL CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR  IN  PARAGRAPH
(A)  OF  SUBDIVISION  TWO OF THIS SECTION FOR EACH SUBSEQUENT YEAR UNTIL
THE ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH  IN  SUCH  PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  (C)  SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENTS  MADE BY RETAIL ELECTRIC
SUPPLIERS PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL NOT  COUNT
TOWARDS THE ANNUAL EXPENDITURE LIMITATIONS SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  11.  (A) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX  THE  COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE
AND  ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A REPORT
REGARDING THE PROGRESS OF EACH RETAIL ELECTRIC SUPPLIER IN  MEETING  ITS
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B)  EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION THE
INFORMATION NECESSARY TO FULFILL THE COMMISSION'S  OBLIGATIONS  PURSUANT
TO  THIS  SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL REPORTING OBLIGATION
AND PROCESS TO BE ESTABLISHED BY THE COMMISSION.
  (C) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT TO  THIS  SUBDIVISION
SHALL  INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC SUPPLIER
FOR THE PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL  CALENDAR  YEARS
TO  DATE:  (I)  THE  ACTUAL  NUMBER OF MEGAWATT-HOURS OF QUALIFIED SOLAR
ENERGY GENERATION SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS  AND  THE
TOTAL  NUMBER  OF  MEGAWATT-HOURS  SOLD  AT  RETAIL  TO NEW YORK END-USE
CUSTOMERS; (II) THE NUMBER OF  SRECS  ASSOCIATED  WITH  QUALIFIED  SOLAR
ENERGY  GENERATION  THAT  WERE  RETIRED  FOR THE PURPOSES OF MEETING THE
SUPPLIER'S OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF  THIS  SECTION;

A. 5713--B                          7

(III) THE AMOUNT, IF ANY, OF SOLAR ALTERNATIVE COMPLIANCE PAYMENTS MADE;
AND  (IV)  ITS  ANNUAL RETAIL ELECTRICITY SALES REVENUE AND EXPENDITURES
FOR THE PROCUREMENT OF SRECS MADE FOR THE PURPOSES OF MEETING THE APPLI-
CABLE  ANNUAL  REQUIREMENT,  PROVIDED THAT SUCH INFORMATION NEED ONLY BE
REPORTED FOR THE  PREVIOUS  CALENDAR  YEAR.    SUCH  REPORT  SHALL  ALSO
INCLUDE,  FOR EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIB-
UTION COMPANY: (1) THE NUMBER OF SRECS EACH ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN FIFTY-ONE AND TWO
HUNDRED FIFTY KILOWATTS IN SIZE  AND  RETAIL  DISTRIBUTED  SOLAR  ENERGY
GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (2) THE
NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE AGREEMENTS; AND (3)
THE  AMOUNT  PAID  TO  QUALIFIED SOLAR ENERGY GENERATORS THROUGH TARIFFS
ESTABLISHED PURSUANT TO SUBDIVISION SEVEN  OF  THIS  SECTION  FOR  SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION.
  12.  EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION, NOT OTHERWISE
REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE  PREVAILING  RATE  OF
WAGES  PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY AN EMPLOYEE
UNDER CONTRACT FOR THE INSTALLATION OF QUALIFIED SOLAR ENERGY GENERATION
EQUIPMENT RATED AT ONE MEGAWATT OR MORE A WAGE  OF  NOT  LESS  THAN  THE
PREVAILING  RATE  OF  WAGES  FOR  SUCH  WORK  IN THE LOCALITY WHERE SUCH
INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN EFFECT FOR  THE  DURA-
TION OF THE AVAILABILITY OF THE INCENTIVE STREAM ESTABLISHED PURSUANT TO
THIS  SECTION  AND  IN NO EVENT SHALL SUCH REQUIREMENT EXTEND BEYOND THE
AVAILABILITY OF SUCH INCENTIVE STREAM. EVERY CONTRACTOR SUBJECT  TO  THE
PROVISIONS  OF THIS SECTION SHALL MAINTAIN PAYROLL RECORDS IN ACCORDANCE
WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
  S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (2)  "PREVAILING  RATE  OF  WAGES" SHALL HAVE THE SAME MEANING AS SUCH
TERM IS DEFINED IN PARAGRAPH  A  OF  SUBDIVISION  FIVE  OF  SECTION  TWO
HUNDRED TWENTY OF THE LABOR LAW;
  (3)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS CONNECTED TO THE DISTRIBUTION SYSTEM  OF  AN
ELECTRIC DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN;
  (4)  "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (5) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE  THAT  IS  INTERCON-
NECTED  TO  THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF THE ELECTRIC
DISTRIBUTION COMPANY METER;
  (6) "SMALL RETAIL DISTRIBUTED SOLAR ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (7) "SOLAR PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR  A  MINIMUM  OF
FIFTEEN  YEARS,  FOR THE PURCHASE OF SRECS FROM A QUALIFIED SOLAR ENERGY
GENERATOR; AND

A. 5713--B                          8

  (8) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION.
  B. (1) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.33%
  2014                0.50%
  2015                0.75%
  2016                1.00%
  2017                1.25%
  2018                1.50%
  2019                1.75%
  2020                2.00%
  2021                2.30%
  2022                2.60%
  2023                2.90%
  2024                3.20%
  2025                3.50%
  (2) AT LEAST TWENTY PERCENT OF THE ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT  LEAST  AN
ADDITIONAL  THIRTY  PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN THIS
PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED  WITH
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY
SIZE.
  (3) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (4) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN  THIS  PARA-
GRAPH  THROUGH  THE  PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  C. (1) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER  CLASSES  SUBJECT  TO COST-EFFECTIVENESS CONSIDERATIONS.   A SEPARATE
SOLICITATION PROCESS SHALL BE CONDUCTED FOR  THE  PROCUREMENT  OF  SRECS
ASSOCIATED  WITH  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY
EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY  KILOWATTS  IN
SIZE.
  (2) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO

A. 5713--B                          9

ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (3) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN PARAGRAPH B  OF  THIS
SUBDIVISION.
  D.  (1)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-SIX,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, MAJORITY LEADER OF THE SENATE, AND CHAIRS OF  THE  SENATE  AND
ASSEMBLY  ENERGY  COMMITTEES,  AND  SHALL  POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED  IN  PARA-
GRAPH B OF THIS SUBDIVISION.
  (2)  EACH  REPORT  THAT  SHALL BE SUBMITTED PURSUANT TO THIS PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH
B OF THIS SUBDIVISION; (II) THE NUMBER OF  SUCH  SRECS  EACH  ASSOCIATED
WITH  SMALL  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT OF ANY SIZE THAT WERE
PROCURED; AND (III) THE NUMBER OF  SUCH  SRECS  PROCURED  THROUGH  SOLAR
PURCHASE AGREEMENTS.
  E.  EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SUBDIVISION, NOT OTHER-
WISE REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE PREVAILING  RATE
OF  WAGES  PURSUANT  TO  ARTICLE  EIGHT  OF  THE LABOR LAW, SHALL PAY AN
EMPLOYEE UNDER CONTRACT FOR THE INSTALLATION OF QUALIFIED  SOLAR  ENERGY
GENERATION  EQUIPMENT  RATED  AT ONE MEGAWATT OR MORE A WAGE OF NOT LESS
THAN THE PREVAILING RATE OF WAGES FOR SUCH WORK IN  THE  LOCALITY  WHERE
SUCH  INSTALLATION  OCCURS.  THIS REQUIREMENT SHALL BE IN EFFECT FOR THE
DURATION OF THE AVAILABILITY OF THE INCENTIVE STREAM ESTABLISHED  PURSU-
ANT  TO  THIS  SUBDIVISION AND IN NO EVENT SHALL SUCH REQUIREMENT EXTEND
BEYOND THE AVAILABILITY  OF  SUCH  INCENTIVE  STREAM.  EVERY  CONTRACTOR
SUBJECT  TO  THE  PROVISIONS  OF THIS SUBDIVISION SHALL MAINTAIN PAYROLL
RECORDS IN ACCORDANCE WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
  S 5. Sections 1020-hh, 1020-ii and 1020-jj of the  public  authorities
law,  as  renumbered  by chapter 433 of the laws of 2009, are renumbered
sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
to read as follows:
  S 1020-HH. PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1.  AS  USED
IN THIS SECTION:
  (A)  "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A PHOTOVOLTAIC
DEVICE THAT DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF  A  BUILDING
INCLUDING  INTEGRATED  ROOF  COVER,  FACADE OR BUILDING CLADDING, GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES AND SKYLIGHTS;
  (B) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;

A. 5713--B                         10

  (C)  "PREVAILING  RATE  OF  WAGES" SHALL HAVE THE SAME MEANING AS SUCH
TERM IS DEFINED IN PARAGRAPH  A  OF  SUBDIVISION  FIVE  OF  SECTION  TWO
HUNDRED TWENTY OF THE LABOR LAW;
  (D)  "QUALIFIED  SOLAR  ENERGY  GENERATION" MEANS POWER GENERATED BY A
PHOTOVOLTAIC DEVICE THAT IS CONNECTED TO THE DISTRIBUTION SYSTEM  OF  AN
ELECTRIC DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN;
  (E)  "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (F) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE  THAT  IS  INTERCON-
NECTED  TO  THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF THE ELECTRIC
DISTRIBUTION COMPANY METER;
  (G) "SMALL RETAIL DISTRIBUTED SOLAR ENERGY  GENERATION"  MEANS  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (H) "SOLAR PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR  A  MINIMUM  OF
FIFTEEN  YEARS,  FOR THE PURCHASE OF SRECS FROM A QUALIFIED SOLAR ENERGY
GENERATOR; AND
  (I) "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE  ENVIRONMENTAL
ATTRIBUTES  ASSOCIATED  WITH ONE MEGAWATT-HOUR OF QUALIFIED SOLAR ENERGY
GENERATION.
  2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE FOLLOWING PERCENTAGES OF THE AUTHORITY'S  TOTAL  ELECTRIC  SALES  IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.33%
  2014                0.50%
  2015                0.75%
  2016                1.00%
  2017                1.25%
  2018                1.50%
  2019                1.75%
  2020                2.00%
  2021                2.30%
  2022                2.60%
  2023                2.90%
  2024                3.20%
  2025                3.50%
  (B)  AT  LEAST  TWENTY PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST
AN  ADDITIONAL  THIRTY  PERCENT  OF THE ANNUAL OBLIGATION ESTABLISHED IN
THIS SUBDIVISION SHALL BE MET THROUGH THE PROCUREMENT OF  SRECS  ASSOCI-
ATED  WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIP-
MENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS  SUBDI-
VISION  THROUGH  THE PROCUREMENT OF SRECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  3. (A) NO LATER THAN JULY FIRST, TWO THOUSAND  TWELVE,  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-

A. 5713--B                         11

TEES, AND SHALL POST ON ITS WEBSITE,  A  SOLAR  SOLICITATION  PLAN  THAT
SHALL  INCLUDE  A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER CLASSES SUBJECT TO COST-EFFECTIVENESS  CONSIDERATIONS.    A  SEPARATE
SOLICITATION  PROCESS  SHALL  BE  CONDUCTED FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  PRODUCED  BY
EQUIPMENT  THAT  IS BETWEEN FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN
SIZE.
  (B) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY  PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES,  AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT PLAN
COMPRISED OF ANY SOLAR PURCHASE AGREEMENTS  FOR  SRECS  ASSOCIATED  WITH
QUALIFIED  SOLAR  ENERGY  GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION. THE  COMPTROLLER  SHALL  REVIEW  SUCH  PLAN  TO
ASSESS  WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND TRANS-
PARENT PROCESS AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF  THE  ASSEM-
BLY,  TEMPORARY  PRESIDENT  OF  THE SENATE, AND CHAIRS OF THE SENATE AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (C) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT  OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL  POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION
PERTAINING TO THE PROCUREMENT OF  SRECS  ASSOCIATED  WITH  SMALL  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION ESTABLISHED IN SUBDIVISION TWO OF
THIS SECTION.
  4. NO LATER THAN JANUARY FIRST, TWO  THOUSAND  TWELVE,  THE  AUTHORITY
SHALL ESTABLISH A TARIFF THAT IT SHALL PAY TO APPLICABLE QUALIFIED SOLAR
ENERGY  GENERATORS  WITH  WHICH THE AUTHORITY ENTERS INTO SOLAR PURCHASE
AGREEMENTS FOR THE PROCUREMENT OF SRECS  ASSOCIATED  WITH  SMALL  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION  FOR THE PURPOSE OF ACHIEVING THE
AUTHORITY'S OBLIGATIONS PERTAINING TO SRECS ASSOCIATED WITH SUCH  GENER-
ATION  ESTABLISHED  IN  SUBDIVISION  TWO  OF THIS SECTION. THE AUTHORITY
SHALL CONSIDER COST DIFFERENCES BETWEEN VARIOUS MARKET SEGMENTS, INCLUD-
ING RESIDENTIAL, COMMERCIAL AND NOT-FOR-PROFIT, AND  APPLICATIONS,  SUCH
AS  BUILDING  INTEGRATED  PHOTOVOLTAIC  EQUIPMENT,  AS WELL AS AVAILABLE
FEDERAL TAX INCENTIVES; AND SHALL DETERMINE WHETHER  SUCH  COST  DIFFER-
ENCES  ARE MATERIAL SUCH THAT MARKET OR APPLICATION SPECIFIC TARIFFS ARE
WARRANTED.  THE AUTHORITY SHALL, AT LEAST ANNUALLY, REVIEW SUCH  TARIFFS
AND  ADJUST  AS NECESSARY TO ACHIEVE ITS OBLIGATIONS PERTAINING TO SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  ESTAB-
LISHED IN SUBDIVISION TWO OF THIS SECTION.  THE AUTHORITY MAY INSTITUTE,
AFTER  NOTICE  AND OPPORTUNITY FOR PUBLIC INPUT, A MECHANISM THAT ALLOWS
FOR ADJUSTMENT TO THE TARIFF RATE BASED ON THE LEVEL OF THE  AUTHORITY'S
PROCUREMENT  OF  SRECS'  RELATIVE TO ITS ANNUAL TARGETS FOR SMALL RETAIL
DISTRIBUTED SOLAR ENERGY  GENERATION.  ANY  SUCH  ADJUSTMENTS  SHALL  BE
APPLIED  PROSPECTIVELY,  AND  SHALL  NOT AFFECT THE TARIFF RATE OF SMALL
RETAIL DISTRIBUTED SOLAR GENERATION ALREADY ENROLLED.
  5. (A) IF THE AUTHORITY DETERMINES THAT ITS  ANNUAL  EXPENDITURES  FOR
THE  PROCUREMENT  OF  SRECS, MADE FOR THE PURPOSES OF MEETING THE ANNUAL
REQUIREMENT SET FORTH IN  PARAGRAPH  (A)  OF  SUBDIVISION  TWO  OF  THIS
SECTION  FOR  A COMPLIANCE YEAR, EXCEEDS ONE AND ONE-HALF PERCENT OF ITS

A. 5713--B                         12

ANNUAL RETAIL ELECTRICITY REVENUES FOR SUCH COMPLIANCE  YEAR,  THEN  THE
ANNUAL REQUIREMENT FOR THE COMPLIANCE YEAR FOR WHICH THE AUTHORITY MAKES
ITS DETERMINATION SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE
IN  EACH  SUBSEQUENT  COMPLIANCE  YEAR  UNTIL  THIS  LIMITATION  ENDS AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B) IF THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF  THIS  SUBDIVI-
SION  IS  TRIGGERED,  IT SHALL END UPON A DETERMINATION BY THE AUTHORITY
THAT ITS ANNUAL EXPENDITURE FOR THE PROCUREMENT OF SRECS  MADE  FOR  THE
PURPOSES OF MEETING ITS ANNUAL REQUIREMENT FOR A COMPLIANCE YEAR DID NOT
EXCEED  ONE AND ONE-HALF PERCENT OF ITS ANNUAL RETAIL ELECTRICITY REVEN-
UES FOR SUCH  COMPLIANCE  YEAR.  FOR  THE  COMPLIANCE  YEAR  IMMEDIATELY
FOLLOWING  THE  END  OF  THE  LIMITATION PURSUANT TO THIS PARAGRAPH, THE
APPLICABLE ANNUAL REQUIREMENT SHALL BE  THE  REQUIREMENT  SET  FORTH  IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY  FOLLOWING  THE  COMPLIANCE YEAR FOR WHICH THE LIMITATION IN
PARAGRAPH (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL  REQUIREMENT
SHALL  CONTINUE  TO INCREASE IN THE INCREMENTS PROVIDED FOR IN PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION FOR EACH  SUBSEQUENT  YEAR  UNTIL
THE  ANNUAL  REQUIREMENT  REACHES THE PERCENTAGE SET FORTH IN SUCH PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-FIVE.
  6. (A) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND  NO  LATER
THAN  JULY  FIRST  OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND
TWENTY-SIX, THE AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER  OF  THE
ASSEMBLY,  TEMPORARY  PRESIDENT  OF THE SENATE, AND CHAIRS OF THE SENATE
AND ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A  REPORT
REGARDING  ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN SUBDI-
VISION TWO OF THIS SECTION.
  (B) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT TO  THIS  SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR  THE  TOTAL  OF  ALL CALENDAR YEARS TO DATE: (I) THE NUMBER OF SRECS
ASSOCIATED WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR  THE
PURPOSES  OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN SUBDIVI-
SION TWO OF THIS SECTION; (II) THE NUMBER OF SUCH SRECS EACH  ASSOCIATED
WITH  SMALL  RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, RETAIL DISTRIB-
UTED SOLAR ENERGY GENERATION  PRODUCED  BY  EQUIPMENT  THAT  IS  BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT OF ANY SIZE THAT WERE
PROCURED; (III) THE NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE
AGREEMENTS; (IV) THE AMOUNT PAID TO QUALIFIED  SOLAR  ENERGY  GENERATORS
FOR  SRECS  ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION THROUGH THE TARIFFS ESTABLISHED PURSUANT TO  SUBDIVISION  FOUR  OF
THIS  SECTION;  AND  (V) THE ANNUAL RETAIL ELECTRICITY SALES REVENUE AND
EXPENDITURES MADE FOR THE PROCUREMENT OF SRECS FOR THE PURPOSE OF  MEET-
ING  THE  APPLICABLE  ANNUAL REQUIREMENT, PROVIDED THAT SUCH INFORMATION
NEED ONLY BE REPORTED FOR THE PREVIOUS CALENDAR YEAR.
  7. EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION,  NOT  OTHERWISE
REQUIRED  TO  PAY  LABORERS, WORKERS OR MECHANICS THE PREVAILING RATE OF
WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY AN  EMPLOYEE
UNDER CONTRACT FOR THE INSTALLATION OF QUALIFIED SOLAR ENERGY GENERATION
EQUIPMENT  RATED  AT  ONE  MEGAWATT  OR MORE A WAGE OF NOT LESS THAN THE
PREVAILING RATE OF WAGES FOR  SUCH  WORK  IN  THE  LOCALITY  WHERE  SUCH
INSTALLATION  OCCURS.  THIS REQUIREMENT SHALL BE IN EFFECT FOR THE DURA-
TION OF THE AVAILABILITY OF THE INCENTIVE STREAM ESTABLISHED PURSUANT TO
THIS SECTION AND IN NO EVENT SHALL SUCH REQUIREMENT  EXTEND  BEYOND  THE
AVAILABILITY  OF  SUCH INCENTIVE STREAM. EVERY CONTRACTOR SUBJECT TO THE

A. 5713--B                         13

PROVISIONS OF THIS SECTION SHALL MAINTAIN PAYROLL RECORDS IN  ACCORDANCE
WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
  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 chairman of
the  public  service  commission  notifies the legislative bill drafting
commission of the occurrence of the implementation  of  a  substantially
similar federal program.

Co-Sponsors

Multi-Sponsors

A5713C (ACTIVE) - Details

Law Section:: Public Service Law
Laws Affected:: Add §66-m, Pub Serv L; amd §§1005 & ren §§1020-hh - 1020-jj to be §§1020-ii - 1020-kk, add §1020-hh, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:: A11004

A5713C (ACTIVE) - Summary

Creates the New York solar industry development and jobs act; relates to procurement of solar renewable energy credits; establishes schedule with annual percentages to be met for compliance years.

A5713C (ACTIVE) - Bill Text download pdf

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

                                 5713--C

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 25, 2011
                               ___________

Introduced by M. of A. ENGLEBRIGHT, CAHILL, SCHIMEL, BRENNAN, ROSENTHAL,
  CRESPO,  LIFTON, COLTON, LUPARDO, PAULIN, HOYT, LATIMER, GALEF, DINOW-
  ITZ, LINARES, MOYA,  RUSSELL,  JAFFEE,  P. RIVERA,  SPANO,  SCHROEDER,
  ABINANTI,  THIELE,  WEISENBERG,  BENEDETTO,  ROBERTS, GUNTHER, MAISEL,
  LAVINE, MARKEY -- Multi-Sponsored by -- M. of A. BING, BOYLE,  CASTEL-
  LI,  CERETTO, CONTE, CURRAN, CYMBROWITZ, GLICK, HEASTIE, KATZ, LENTOL,
  P. LOPEZ, McDONOUGH, McENENY, McKEVITT,  MILLMAN,  MONTESANO,  MURRAY,
  NOLAN,  RAIA,  REILLY, SALADINO, SAYWARD, SCHIMMINGER, SWEENEY, WRIGHT
  -- read once and referred to the Committee on Ways and Means -- refer-
  ence changed to the Committee on Energy -- reported  and  referred  to
  the Committee on Ways and Means -- committee discharged, bill amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  again reported from said committee with amendments, ordered  reprinted
  as  amended  and  recommitted to said committee -- again reported from
  said committee with  amendments,  ordered  reprinted  as  amended  and
  recommitted to said committee

AN  ACT  to amend the public service law and the public authorities law,
  in relation to the creation of the New York solar industry development
  and jobs act of 2011 and the procurement  of  solar  renewable  energy
  credits

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

  Section 1. Legislative intent and purpose. It is  the  intent  of  the
legislature  to enable the rapid and sustainable development of a robust
solar power industry in New York by creating  a  scalable,  diverse  and
competitive  solar  energy market.  By tapping into the state's abundant
solar energy resources, it is the further intent of the  legislature  to
harness  the  multiple  benefits  associated with the generation of such
clean power, including the significant creation of much needed  jobs,  a
reduction  of  the  long-term  costs  of  electricity generation for New
York's energy consumers, including transmission and  distribution  costs

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08692-09-1

A. 5713--C                          2

that  continue to accelerate in proportion to overall electricity supply
costs for the residents of this  state,  increased  reliability  of  the
state's  electric  grid,  reduced  peak  demand, development of capacity
resources  in  capacity-constrained  areas,  alleviation of local trans-
mission and distribution constraints, and a decrease in the emission  of
harmful  air  pollution,  including  localized  and  other emissions. By
establishing such a program, New York will create a solar energy  enter-
prise  that  will elevate the state to be among the world's cutting edge
clean energy industry leaders, while helping to secure increased econom-
ic development for New Yorkers.
  S 2. Short title.  This act shall be known and may  be  cited  as  the
"New York solar industry development and jobs act of 2011".
  S 3. The public service law is amended by adding a new section 66-m to
read as follows:
  S  66-M.  PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1. AS USED IN
THIS SECTION:
  (A) "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A  PHOTOVOLTAIC
DEVICE  THAT  DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF A BUILDING
INCLUDING INTEGRATED ROOF COVER, FACADE  OR  BUILDING  CLADDING,  GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES, AND SKYLIGHTS;
  (B)  "ELECTRIC  DISTRIBUTION  COMPANY" MEANS AN INVESTOR-OWNED UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE;
  (C) "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT  GENERATES
ELECTRICITY  FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE PHOTOVOLTAIC
EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED WITH A  DEVICE  CAPABLE  OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (D)  "PREVAILING  RATE  OF  WAGES" SHALL HAVE THE SAME MEANING AS SUCH
TERM IS DEFINED IN PARAGRAPH  A  OF  SUBDIVISION  FIVE  OF  SECTION  TWO
HUNDRED TWENTY OF THE LABOR LAW;
  (E)  "QUALIFIED  SOLAR  ENERGY  GENERATION"  MEANS POWER GENERATED (I)
WITHIN FIFTEEN YEARS OF THE DATE THE QUALIFIED  SOLAR  ENERGY  GENERATOR
RECEIVED  PERMISSION FROM THE ELECTRIC DISTRIBUTION COMPANY TO ENERGIZE;
(II) BY A PHOTOVOLTAIC DEVICE THAT  IS  CONNECTED  TO  THE  DISTRIBUTION
SYSTEM  OR  AREA SUBSTATIONS AND ASSOCIATED FACILITIES THAT COMPRISE THE
LOCAL AREA NETWORK OF  AN  ELECTRIC  DISTRIBUTION  COMPANY  SERVING  THE
STATE; (III) AFTER JANUARY FIRST, TWO THOUSAND ELEVEN;
  (F)  "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (G) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY GENERATION PRODUCED BY A PHOTOVOLTAIC DEVICE  THAT  IS  INTERCON-
NECTED  TO  THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF THE ELECTRIC
DISTRIBUTION COMPANY METER;
  (H) "RETAIL ELECTRIC SUPPLIER" MEANS  AN  ENTITY  AUTHORIZED  TO  SELL
ELECTRICITY  AT  RETAIL TO END-USE CUSTOMERS IN THIS STATE, INCLUDING AN
ELECTRIC DISTRIBUTION COMPANY ACTING AS A PROVIDER OF LAST RESORT OR  AN
ENERGY SERVICE COMPANY LICENSED BY THE COMMISSION FOR SUCH PURPOSE;
  (I)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (J)  "SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT OF A
CERTAIN DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY  THE  COMMIS-
SION,  THAT  A  RETAIL ELECTRIC SUPPLIER MAY SUBMIT TO THE COMMISSION IN
ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED  IN  SUBDIVISION
TWO OF THIS SECTION;

A. 5713--C                          3

  (K)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (L)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  2.  (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE, AT MINI-
MUM, SRECS TO MEET THE FOLLOWING PERCENTAGES OF  SUCH  SUPPLIER'S  TOTAL
ELECTRIC SALES IN EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.15%
  2014                0.20%
  2015                0.30%
  2016                0.50%
  2017                0.75%
  2018                1.00%
  2019                1.25%
  2020                1.50%
  (B)  COMPLIANCE  SHALL  CONTINUE  THROUGH  TWO THOUSAND THIRTY-FOUR AS
FOLLOWS:
  (I) ELECTRIC DISTRIBUTION COMPANY OBLIGATIONS FOR THE  PROCUREMENT  OF
SRECS  ASSOCIATED  WITH QUALIFIED SOLAR ENERGY GENERATION SHALL CONTINUE
UNTIL ALL EXISTING SOLAR PURCHASE AGREEMENTS ENTERED  INTO  THROUGH  TWO
THOUSAND  TWENTY HAVE EXPIRED. ELECTRIC DISTRIBUTION COMPANIES SHALL NOT
BE OBLIGATED TO ENTER INTO NEW SOLAR PURCHASE AGREEMENTS AFTER TWO THOU-
SAND TWENTY.
  (II) EACH RETAIL ELECTRIC SUPPLIER THAT IS NOT  AN  ELECTRIC  DISTRIB-
UTION  COMPANY  SHALL  ANNUALLY PROCURE SRECS TO MEET THE PERCENTAGES OF
SUCH SUPPLIER'S TOTAL ELECTRIC SALES IN ACCORDANCE  WITH  THE  FOLLOWING
SCHEDULE:
  (A)  FOR COMPLIANCE YEARS TWO THOUSAND TWENTY-ONE THROUGH TWO THOUSAND
TWENTY-SEVEN, THE ANNUAL REQUIREMENT SHALL BE THE ANNUAL REQUIREMENT  IN
TWO THOUSAND TWENTY;
  (B) FOR COMPLIANCE YEAR TWO THOUSAND TWENTY-EIGHT, THE ANNUAL REQUIRE-
MENT  SHALL BE THE ANNUAL REQUIREMENT APPLICABLE IN TWO THOUSAND TWENTY-
SEVEN LESS THE ANNUAL REQUIREMENT APPLICABLE IN TWO  THOUSAND  THIRTEEN;
AND
  (C) FOR COMPLIANCE YEARS TWO THOUSAND TWENTY-NINE THROUGH TWO THOUSAND
THIRTY-FOUR,  THE  ANNUAL REQUIREMENT SHALL BE THE ANNUAL REQUIREMENT IN
THE PRIOR COMPLIANCE YEAR LESS THE NET OF THE ANNUAL REQUIREMENT  APPLI-
CABLE  IN THE FIFTEENTH AND SIXTEENTH YEAR PRIOR. FOR PURPOSES OF ILLUS-
TRATION, THE ANNUAL REQUIREMENT FOR TWO THOUSAND  TWENTY-NINE  IS  1.15%
((1.5%)-(.20%)-(.15%)).
  (C)  AT  LEAST  TWENTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO
EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY
SHALL  BE  MET  THROUGH  THE  PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST  AN  ADDITIONAL
THIRTY  PERCENT OF THE ANNUAL OBLIGATION APPLICABLE TO EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIBUTION  COMPANY  SHALL  BE  MET
THROUGH  THE  PROCUREMENT  OF  SRECS  ASSOCIATED WITH RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE.
  (D) RETAIL ELECTRIC SUPPLIERS MAY MEET THEIR  OBLIGATIONS  ESTABLISHED
BY  THE  COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH THE PROCUREMENT
OF SRECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED  QUALIFIED  SOLAR
ENERGY GENERATION.

A. 5713--C                          4

  (E)  EACH  SREC  PROCURED BY A RETAIL ELECTRIC SUPPLIER FROM QUALIFIED
SOLAR ENERGY GENERATION EQUIPMENT THAT IS PLACED  IN  SERVICE  WITHIN  A
LOAD  ZONE FOR WHICH A LOCATIONAL MINIMUM INSTALLED CAPACITY REQUIREMENT
HAS BEEN ESTABLISHED BY THE NEW YORK INDEPENDENT SYSTEM OPERATOR  AS  OF
THE  EFFECTIVE  DATE  OF THIS SECTION SHALL BE COUNTED AS ONE AND A HALF
SRECS TOWARD THE RETAIL ELECTRIC  SUPPLIER'S  ANNUAL  PROCUREMENT  OBLI-
GATION ESTABLISHED BY THE COMMISSION PURSUANT TO THIS SUBDIVISION.
  (I)  WITHIN NINETY DAYS OF THE CONCLUSION OF THE THIRD ANNUAL PROCURE-
MENT PERIOD, THE COMMISSION SHALL INITIATE A  REVIEW,  WITH  NOTICE  AND
OPPORTUNITY  FOR  PUBLIC  COMMENT,  ON THE AMOUNT OF SRECS PROCURED FROM
WITHIN EACH TARGETED LOAD ZONE. FOR THAT REVIEW,  THE  COMMISSION  SHALL
DETERMINE  THE  AMOUNT  OF SRECS PROCURED FROM WITHIN EACH TARGETED LOAD
ZONE AS A PERCENTAGE OF SRECS PROCURED  STATEWIDE  FOR  EACH  COMPLIANCE
PERIOD UNDER REVIEW, AND ALSO SHALL DETERMINE THE AMOUNT OF RETAIL SALES
OF  ELECTRIC COMMODITY SOLD WITHIN EACH TARGETED LOAD ZONE AS A PERCENT-
AGE OF SAME PROCURED STATEWIDE FOR EACH COMPLIANCE PERIOD UNDER  REVIEW.
IF  THE  RESULTING PERCENTAGE OF SRECS PROCURED FROM WITHIN THE TARGETED
LOAD ZONE EXCEEDS THE RESULTING PERCENTAGE OF RETAIL SALES  OF  ELECTRIC
COMMODITY  SOLD  WITHIN  THE TARGETED LOAD ZONE, THEN THE COMMISSION MAY
ADJUST OR ELIMINATE THE SREC MULTIPLIER SET FORTH IN THIS PARAGRAPH  FOR
SYSTEMS  PUT  IN  SERVICE  AFTER  THE REVIEW HAS BEEN COMPLETED, BUT NOT
BEFORE THE NEXT COMPLIANCE YEAR. IF THE RESULTING  PERCENTAGE  OF  SRECS
PROCURED FROM WITHIN THE TARGETED LOAD ZONE DOES NOT EXCEED THE PERCENT-
AGE OF RETAIL SALES OF ELECTRIC COMMODITY SOLD WITHIN THAT TARGETED LOAD
ZONE,  THEN THE COMMISSION SHALL NOT ADJUST OR ELIMINATE THE SREC MULTI-
PLIER.
  (II) THE COMMISSION SHALL CONDUCT THE REVIEW SET FORTH IN  THIS  PARA-
GRAPH EACH YEAR FOLLOWING THE THIRD ANNUAL PROCUREMENT PERIOD. IF, AFTER
HAVING  ADJUSTED  OR  ELIMINATED THE SREC MULTIPLIER PURSUANT TO A PRIOR
ANNUAL REVIEW, THE COMMISSION SUBSEQUENTLY DETERMINES THAT THE RESULTING
PERCENTAGE OF SRECS PROCURED FROM WITHIN THE TARGETED LOAD ZONE NO LONG-
ER EXCEEDS THE PERCENTAGE OF RETAIL SALES  OF  ELECTRIC  COMMODITY  SOLD
WITHIN  THAT TARGETED LOAD ZONE, THEN THE COMMISSION SHALL REINSTATE THE
SREC MULTIPLIER SET FORTH IN THIS PARAGRAPH FOR SYSTEMS PUT  IN  SERVICE
AFTER  THE REVIEW HAS BEEN COMPLETED, BUT NOT BEFORE THE NEXT COMPLIANCE
YEAR.
  (F) WITHIN THREE MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY,  IN  CONSULTATION
WITH THE COMMISSION, SHALL ESTABLISH AN AUTOMATED GENERATION ATTRIBUTION
TRACKING SYSTEM CAPABLE OF TRACKING SRECS.
  (G)  SRECS SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS ESTAB-
LISHED IN THIS SUBDIVISION IN THE COMPLIANCE  YEAR  IN  WHICH  THEY  ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  3.  (A)  IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION,  THEY  SHALL
BE PERMITTED TO DISCHARGE SUCH OBLIGATIONS BY MAKING A SOLAR 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 SOLAR ENERGY GENERATION
EQUIPMENT NECESSARY TO ACHIEVE THE OBLIGATIONS ESTABLISHED  IN  SUBDIVI-
SION TWO OF THIS SECTION.
  (B)  NO  LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMISSION
SHALL ESTABLISH A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE  THROUGH
THE  YEAR  TWO THOUSAND TWENTY, AND SHALL ANNUALLY ADD A THIRTEENTH YEAR
TO THE SCHEDULE ON A ROLLING ANNUAL BASIS THROUGH  COMPLIANCE  YEAR  TWO
THOUSAND THIRTY-FOUR. THE COMMISSION SHALL ANNUALLY REVIEW SUCH SCHEDULE

A. 5713--C                          5

TO ENSURE THAT THE PAYMENTS ARE SET AT A LEVEL TO STIMULATE THE DEVELOP-
MENT  OF  NEW QUALIFIED SOLAR ENERGY GENERATION EQUIPMENT, IN ACCORDANCE
WITH THE PREVIOUS 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 COMMISSION SHALL NOT REDUCE PREVIOUSLY  ESTABLISHED  LEVELS  OF
PAYMENTS, NOR SHALL THE COMMISSION PROVIDE RELIEF FROM THE OBLIGATION OF
PAYMENT OF THE SOLAR ALTERNATIVE COMPLIANCE PAYMENTS BY THE RETAIL ELEC-
TRIC SUPPLIERS IN ANY FORM.
  (C)  THE  COMMISSION  SHALL  MAKE  AVAILABLE  ALL  MONIES FROM AMOUNTS
COLLECTED THROUGH SUCH SOLAR ALTERNATIVE COMPLIANCE PAYMENTS FOR A SOLAR
SOLICITATION TO BE CONDUCTED BY THE NEW YORK STATE ENERGY  RESEARCH  AND
DEVELOPMENT  AUTHORITY  UTILIZING THE TEMPLATE FOR SOLAR PURCHASE AGREE-
MENTS AS ESTABLISHED BY THE COMMISSION UNDER PARAGRAPH (A)  OF  SUBDIVI-
SION  FOUR  OF THIS SECTION FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION. THE PROCUREMENT OF SRECS  UNDER  THIS
PROVISION  SHALL  INCLUDE  CRITERIA  IN THE REVIEW AND SELECTION PROCESS
THAT MORE HIGHLY RANK PROPOSALS THAT (I) HAVE THE MOST BENEFICIAL IMPACT
ON DISPLACING LOCAL EMISSIONS, (II) DEFER OR AVOID INFRASTRUCTURE  COSTS
IN  CONSTRAINED  AREAS,  AND  (III)  ALIGN WITH THE NEW YORK INDEPENDENT
SYSTEM OPERATOR ZONAL LOCATION FROM WHICH THE SOLAR ALTERNATIVE  COMPLI-
ANCE PAYMENTS HAVE BEEN RECEIVED.
  4.  (A)  NO LATER THAN JANUARY FIRST, TWO THOUSAND TWELVE, THE COMMIS-
SION SHALL ESTABLISH A TEMPLATE FOR SOLAR PURCHASE AGREEMENTS TO BE USED
BY RETAIL ELECTRIC SUPPLIERS THAT ARE  ELECTRIC  DISTRIBUTION  COMPANIES
FOR THEIR PROCUREMENT OF SRECS FOR THE PURPOSE OF FULFILLING THEIR OBLI-
GATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL, NOT LATER THAN JULY FIRST, TWO  THOUSAND  TWELVE,  SUBMIT
FOR  COMMISSION REVIEW AND APPROVAL A SOLAR SOLICITATION PLAN THAT SHALL
INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING PROPOSALS  FOR  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  OTHER THAN SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF  FULFILL-
ING  ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. THE
ELECTRIC  DISTRIBUTION  COMPANY'S  SOLAR  SOLICITATION  PLAN  SHALL   BE
DESIGNED  TO FOSTER A DIVERSITY OF SOLAR PROJECT SIZES AND PARTICIPATION
AMONG  ALL  ELIGIBLE  CUSTOMER  CLASSES  SUBJECT  TO  COST-EFFECTIVENESS
CONSIDERATIONS.    THE  ELECTRIC  DISTRIBUTION COMPANY SHALL ESTABLISH A
SEPARATE SOLICITATION PROCESS FOR THE PROCUREMENTS OF A  DEFINED  NUMBER
OF  SRECS  ASSOCIATED  WITH  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION
PRODUCED BY EQUIPMENT THAT IS BETWEEN FIFTY-ONE AND  TWO  HUNDRED  FIFTY
KILOWATTS  IN  SIZE.   RETAIL DISTRIBUTED SOLAR ENERGY GENERATION WITHIN
THIS SIZE RANGE SHALL BE ELIGIBLE TO RECEIVE A SREC OFFER  PRICE  EQUIV-
ALENT  TO  THE  WEIGHTED  AVERAGE  ACCEPTED  BID PRICE IN THE CONCURRENT
SOLICITATION FOR RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  SYSTEMS
GREATER  THAN  TWO  HUNDRED  FIFTY KILOWATTS IN SIZE, PLUS AN ADDITIONAL
INCENTIVE OF UP TO TEN PER CENT AS MAY BE REQUIRED BY THE COMMISSION, TO
ACCOUNT FOR COST DIFFERENCES BETWEEN THESE  MARKET  SEGMENTS.  THE  SREC
OFFER  PRICE SHALL CONTINUE TO BE AVAILABLE UNTIL THE SOONER OF: (I) THE
ACCEPTANCE BY THE ELECTRIC DISTRIBUTION  COMPANY  OF  RESERVATIONS  FROM
QUALIFIED RETAIL DISTRIBUTED SOLAR ENERGY GENERATION FOR AVAILABLE STAN-
DARD OFFER SRECS; OR (II) THE ELECTRIC DISTRIBUTION COMPANY'S COMPLETION
OF ITS NEXT ANNUAL SOLICITATION.
  (C)  EACH  RETAIL  ELECTRIC  SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL EXECUTE ITS APPROVED  SOLICITATION  PLAN  AND  SUBMIT  FOR
COMMISSION  REVIEW  AND  APPROVAL  ITS  PREFERRED SOLAR PROCUREMENT PLAN

A. 5713--C                          6

COMPRISED OF PROPOSED SOLAR PURCHASE  AGREEMENTS  FOR  SRECS  ASSOCIATED
WITH  QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIB-
UTED SOLAR 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 SOLAR PROCUREMENT PLAN WOULD RESULT IN THE
ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO  THE
PROCUREMENT  OF  SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION
OTHER THAN SMALL RETAIL  DISTRIBUTED  SOLAR  ENERGY  GENERATION  AT  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 JULY FIRST, TWO THOUSAND TWELVE, EACH RETAIL ELEC-
TRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION COMPANY SHALL  SUBMIT  TO
THE COMMISSION FOR REVIEW AND APPROVAL A PLAN FOR THE ACHIEVEMENT OF ITS
OBLIGATION  PERTAINING TO THE PROCUREMENT OF SRECS ASSOCIATED WITH SMALL
RETAIL DISTRIBUTED SOLAR ENERGY GENERATION  ESTABLISHED  IN  SUBDIVISION
TWO OF THIS SECTION.
  (E)  EACH  ELECTRIC  DISTRIBUTION  COMPANY'S SREC PROCUREMENT SHALL BE
CONSISTENT WITH THE SEGMENT-SPECIFIC PERCENTAGES PROVIDED IN  THE  PLANS
APPROVED  BY  THE  COMMISSION PURSUANT TO PARAGRAPHS (B) AND (D) OF THIS
SUBDIVISION. IF, HOWEVER,  ON  THE  BASIS  OF  THE  ACTUAL  SOLICITATION
RESULTS,  THE  COLLECTIVE  ANNUAL  COST ASSOCIATED WITH SUCH PROCUREMENT
WOULD EXCEED ONE AND ONE-HALF PERCENT OF SUCH  COMPANY'S  ANNUAL  RETAIL
ELECTRICITY SALES REVENUES, THE ELECTRIC DISTRIBUTION COMPANY SHALL HAVE
THE  OPTION OF SUBSTITUTING, BY UP TO TWENTY-FIVE PERCENT, THE NUMBER OF
SRECS PROCURED FROM THE HIGHEST COST SEGMENT WITH  SRECS  PROCURED  FROM
QUALIFIED SOLAR ENERGY GENERATION OF ANY SIZE.
  5.  EACH  RETAIL  ELECTRIC  SUPPLIER  THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE ENTITLED TO RECOVER THE  PRUDENTLY  INCURRED  COSTS  OF
COMPLYING  WITH  ITS  OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS
SECTION, AS DETERMINED BY THE COMMISSION. ALL SUCH COSTS SHALL BE RECOV-
ERED THROUGH THE SUPPLY PORTION OF EACH ELECTRIC CUSTOMER'S  BILL  IN  A
COMPETITIVELY NEUTRAL MANNER.
  6. NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE COMMISSION SHALL
ESTABLISH  AN  INCENTIVE  PROGRAM FOR RETAIL ELECTRIC SUPPLIERS THAT ARE
ELECTRIC DISTRIBUTION COMPANIES BASED ON SUCH COMPANIES' ACHIEVEMENT  OF
THEIR  OBLIGATIONS,  AND  EXEMPLARY PERFORMANCE BEYOND SUCH OBLIGATIONS,
ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION (I) IN  A  COST-EFFECTIVE
MANNER  THAT ACHIEVES THE OBLIGATIONS AT LEAST COST AND AVOIDS LONG-TERM
COSTS  TO  THE  TRANSMISSION  AND  DISTRIBUTION  SYSTEM;  (II)  PROVIDES
ENHANCED  ELECTRICITY RELIABILITY WITHIN COMPANIES' SERVICE TERRITORIES;
AND (III) MINIMIZES PEAK LOAD IN CONSTRAINED AREAS.
  7. NO LATER THAN JANUARY FIRST, TWO THOUSAND  TWELVE,  THE  COMMISSION
SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, ESTABLISH THE TERMS AND CONDITIONS THAT SHALL  BE
APPLICABLE  TO SOLAR PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC
SUPPLIERS THAT ARE ELECTRIC DISTRIBUTION COMPANIES FOR  THE  PROCUREMENT
OF  SRECS  ASSOCIATED  WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION, FOR THE PURPOSE OF ACHIEVING SUCH COMPANIES' OBLIGATIONS PERTAIN-
ING TO SRECS ASSOCIATED WITH SUCH GENERATION ESTABLISHED IN  SUBDIVISION
TWO  OF THIS SECTION.  SUCH TERMS AND CONDITIONS SHALL INCLUDE A TARIFF,

A. 5713--C                          7

AS ESTABLISHED BY THE COMMISSION IN CONJUNCTION WITH THE NEW YORK  STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, FOR THE PROCUREMENT OF SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION, TO  BE
PAID  BY  ELECTRIC  DISTRIBUTION COMPANIES TO APPLICABLE QUALIFIED SOLAR
ENERGY GENERATORS. THE COMMISSION, IN  CONJUNCTION  WITH  THE  NEW  YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT AUTHORITY, SHALL CONSIDER COST
DIFFERENCES BETWEEN  VARIOUS  MARKET  SEGMENTS,  INCLUDING  RESIDENTIAL,
COMMERCIAL  AND NOT-FOR-PROFIT, AND APPLICATIONS, SUCH AS BUILDING INTE-
GRATED PHOTOVOLTAIC EQUIPMENT, AND SHALL  DETERMINE  WHETHER  SUCH  COST
DIFFERENCES  ARE  MATERIAL  SUCH  THAT  MARKET  OR  APPLICATION SPECIFIC
TARIFFS ARE WARRANTED.  THE COMMISSION, IN CONJUNCTION WITH THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SHALL, AT LEAST ANNUAL-
LY, REVIEW SUCH TARIFFS AND ADJUST AS NECESSARY  TO  ACHIEVE  THE  OBLI-
GATIONS  PERTAINING  TO  SRECS  ASSOCIATED WITH SMALL RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION ESTABLISHED IN SUBDIVISION TWO OF THIS  SECTION.
THE  COMMISSION  MAY  ALSO  INSTITUTE,  AFTER NOTICE AND OPPORTUNITY FOR
PUBLIC INPUT, A MECHANISM THAT ALLOWS FOR ADJUSTMENT TO THE TARIFF  RATE
BASED ON ELECTRIC DISTRIBUTION COMPANIES' PROCUREMENT OF SRECS, RELATIVE
TO  THE  ANNUAL TARGETS FOR SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION. ANY SUCH ADJUSTMENTS SHALL BE APPLIED  PROSPECTIVELY,  AND  SHALL
NOT  AFFECT  THE  TARIFF  RATE  OF SMALL RETAIL DISTRIBUTED SOLAR ENERGY
GENERATION ALREADY ENROLLED.
  8. RETAIL CONTRACTS FOR THE SALE OF ELECTRICITY  ENTERED  INTO  BEFORE
JANUARY FIRST, TWO THOUSAND TWELVE 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 THAT IS AN ELECTRIC DISTRIBUTION
COMPANY SHALL BE PERMITTED TO RESELL OR OTHERWISE DISPOSE OF  SRECS  AND
ANY ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION PROCURED BY SUCH COMPA-
NY  THAT  IS IN EXCESS OF ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO
OF THIS SECTION, PROVIDED THE COMPANY SHALL NET  THE  COST  OF  PAYMENTS
MADE  FOR  SRECS  AND  ANY  ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION
UNDER SOLAR PURCHASE AGREEMENTS AGAINST THE  PROCEEDS  OF  THE  SALE  OF
SRECS  AND  ANY  ASSOCIATED  QUALIFIED  SOLAR 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) WITHIN THIRTY DAYS OF THE SUBMISSION OF THE ANNUAL  COMPLIANCE
REPORTS FILED BY RETAIL ELECTRIC SUPPLIERS PURSUANT TO SUBDIVISION ELEV-
EN  OF  THIS  SECTION, THE COMMISSION SHALL DETERMINE THE COMBINED TOTAL
ANNUAL EXPENDITURES FOR THE PROCUREMENT OF SRECS MADE BY RETAIL ELECTRIC
SUPPLIERS FOR THE PURPOSES OF MEETING THE ANNUAL REQUIREMENT  SET  FORTH
IN  PARAGRAPH  (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE APPLICABLE
COMPLIANCE YEAR AS A PERCENTAGE OF THE TOTAL  RETAIL  ELECTRICITY  SALES
REVENUES FOR RETAIL ELECTRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. IF SUCH
PERCENTAGE EXCEEDS ONE AND ONE-HALF PERCENT, THEN THE ANNUAL REQUIREMENT
FOR THE COMPLIANCE YEAR FOR WHICH THE COMMISSION MAKES ITS DETERMINATION
SHALL  CONTINUE  TO  BE THE ANNUAL REQUIREMENT APPLICABLE IN EACH SUBSE-
QUENT COMPLIANCE YEAR UNTIL THIS LIMITATION ENDS AS  PROVIDED  IN  PARA-
GRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION BY THE  COMMISSION,
BASED  UPON A REVIEW OF THE RETAIL ELECTRIC SUPPLIERS' ANNUAL COMPLIANCE
REPORTS, THAT THE COMBINED TOTAL ANNUAL EXPENDITURES FOR THE PROCUREMENT
OF SRECS MADE BY RETAIL ELECTRIC SUPPLIERS TO MEET THE APPLICABLE ANNUAL
REQUIREMENT FOR A COMPLIANCE  YEAR  DID  NOT  EXCEED  ONE  AND  ONE-HALF

A. 5713--C                          8

PERCENT  OF THE TOTAL RETAIL ELECTRICITY SALES REVENUES FOR RETAIL ELEC-
TRIC SUPPLIERS FOR SUCH COMPLIANCE YEAR. FOR THE COMPLIANCE  YEAR  IMME-
DIATELY  FOLLOWING THE END OF THE LIMITATION PURSUANT TO THIS PARAGRAPH,
THE  APPLICABLE ANNUAL REQUIREMENT SHALL BE THE REQUIREMENT SET FORTH IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH  THE  LIMITATION  IN
PARAGRAPH  (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL REQUIREMENT
SHALL CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR  IN  PARAGRAPH
(A)  OF  SUBDIVISION  TWO OF THIS SECTION FOR EACH SUBSEQUENT YEAR UNTIL
THE ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH  IN  SUCH  PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY.
  (C)  SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENTS  MADE BY RETAIL ELECTRIC
SUPPLIERS PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL NOT  COUNT
TOWARDS THE ANNUAL EXPENDITURE LIMITATIONS SET FORTH IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  11.  (A) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-ONE  THE  COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE
AND  ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A REPORT
REGARDING THE PROGRESS OF EACH RETAIL ELECTRIC SUPPLIER IN  MEETING  ITS
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B)  EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION THE
INFORMATION NECESSARY TO FULFILL THE COMMISSION'S  OBLIGATIONS  PURSUANT
TO  THIS  SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL REPORTING OBLIGATION
AND PROCESS TO BE ESTABLISHED BY THE COMMISSION.
  (C) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT TO  THIS  SUBDIVISION
SHALL  INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC SUPPLIER
FOR THE PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL  CALENDAR  YEARS
TO  DATE:  (I)  THE  ACTUAL  NUMBER OF MEGAWATT-HOURS OF QUALIFIED SOLAR
ENERGY GENERATION SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS  AND  THE
TOTAL  NUMBER  OF  MEGAWATT-HOURS  SOLD  AT  RETAIL  TO NEW YORK END-USE
CUSTOMERS; (II) THE NUMBER OF  SRECS  ASSOCIATED  WITH  QUALIFIED  SOLAR
ENERGY  GENERATION  THAT  WERE  RETIRED  FOR THE PURPOSES OF MEETING THE
SUPPLIER'S OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF  THIS  SECTION;
(III) THE AMOUNT, IF ANY, OF SOLAR ALTERNATIVE COMPLIANCE PAYMENTS MADE;
AND  (IV)  ITS  ANNUAL RETAIL ELECTRICITY SALES REVENUE AND EXPENDITURES
FOR THE PROCUREMENT OF SRECS MADE FOR THE PURPOSES OF MEETING THE APPLI-
CABLE ANNUAL REQUIREMENT, PROVIDED THAT SUCH INFORMATION  NEED  ONLY  BE
REPORTED  FOR  THE  PREVIOUS  CALENDAR  YEAR.    SUCH  REPORT SHALL ALSO
INCLUDE, FOR EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC  DISTRIB-
UTION COMPANY: (1) THE NUMBER OF SRECS EACH ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION,  RETAIL DISTRIBUTED SOLAR ENERGY
GENERATION PRODUCED BY EQUIPMENT  THAT  IS  BETWEEN  FIFTY-ONE  AND  TWO
HUNDRED  FIFTY  KILOWATTS  IN  SIZE  AND RETAIL DISTRIBUTED SOLAR ENERGY
GENERATION PRODUCED BY EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (2) THE
NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE AGREEMENTS; AND (3)
THE AMOUNT PAID TO QUALIFIED SOLAR  ENERGY  GENERATORS  THROUGH  TARIFFS
ESTABLISHED  PURSUANT  TO  SUBDIVISION  SEVEN  OF THIS SECTION FOR SRECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION.
  12. EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION, NOT  OTHERWISE
REQUIRED  TO  PAY  LABORERS, WORKERS OR MECHANICS THE PREVAILING RATE OF
WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY AN  EMPLOYEE
UNDER CONTRACT FOR THE INSTALLATION OF QUALIFIED SOLAR ENERGY GENERATION
EQUIPMENT  RATED  AT  TWO  HUNDRED FIFTY KILOWATTS OR MORE A WAGE OF NOT
LESS THAN THE PREVAILING RATE OF WAGES FOR SUCH  WORK  IN  THE  LOCALITY

A. 5713--C                          9

WHERE  SUCH INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN EFFECT FOR
THE DURATION OF THE AVAILABILITY OF  THE  INCENTIVE  STREAM  ESTABLISHED
PURSUANT  TO  THIS SECTION AND IN NO EVENT SHALL SUCH REQUIREMENT EXTEND
BEYOND  THE  AVAILABILITY  OF  SUCH  INCENTIVE  STREAM. EVERY CONTRACTOR
SUBJECT TO THE PROVISIONS OF THIS  SUBDIVISION  SHALL  MAINTAIN  PAYROLL
RECORDS IN ACCORDANCE WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
  S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE  PHOTOVOLTAIC
EFFECT,  WHETHER  OR  NOT THE DEVICE IS COUPLED WITH A DEVICE CAPABLE OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (2) "PREVAILING RATE OF WAGES" SHALL HAVE THE  SAME  MEANING  AS  SUCH
TERM  IS  DEFINED  IN  PARAGRAPH  A  OF  SUBDIVISION FIVE OF SECTION TWO
HUNDRED TWENTY OF THE LABOR LAW;
  (3) "QUALIFIED SOLAR ENERGY  GENERATION"  MEANS  POWER  GENERATED  (I)
WITHIN  FIFTEEN  YEARS  OF THE DATE THE QUALIFIED SOLAR ENERGY GENERATOR
RECEIVED PERMISSION FROM THE ELECTRIC DISTRIBUTION COMPANY TO  ENERGIZE;
(II)  BY  A  PHOTOVOLTAIC  DEVICE  THAT IS CONNECTED TO THE DISTRIBUTION
SYSTEM OR AREA SUBSTATIONS AND ASSOCIATED FACILITIES THAT  COMPRISE  THE
LOCAL  AREA  NETWORK  OF  AN  ELECTRIC  DISTRIBUTION COMPANY SERVING THE
STATE; (III) AFTER JANUARY FIRST, TWO THOUSAND ELEVEN;
  (4) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (5) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (6)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (7)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND
  (8)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  B. (1) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.33%
  2014                0.50%
  2015                0.75%
  2016                1.00%
  2017                1.25%
  2018                1.50%
  2019                1.75%
  2020                2.00%
  (2) AT LEAST TWENTY PERCENT OF THE ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT  LEAST  AN
ADDITIONAL  THIRTY  PERCENT OF THE ANNUAL OBLIGATION ESTABLISHED IN THIS

A. 5713--C                         10

PARAGRAPH SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCIATED  WITH
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT OF ANY
SIZE.
  (3) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (4)  THE  AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS PARA-
GRAPH THROUGH THE PROCUREMENT OF SRECS TOGETHER WITH  OR  SEPARATE  FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  (5)  EACH  SREC  PROCURED BY THE AUTHORITY FROM QUALIFIED SOLAR ENERGY
GENERATION EQUIPMENT THAT IS PLACED IN SERVICE WITHIN A  LOAD  ZONE  FOR
WHICH  A  LOCATIONAL  MINIMUM  INSTALLED  CAPACITY  REQUIREMENT HAS BEEN
ESTABLISHED BY THE NEW YORK INDEPENDENT SYSTEM OPERATOR AS OF THE EFFEC-
TIVE DATE OF THIS SECTION SHALL BE COUNTED AS  ONE  AND  ONE-HALF  SRECS
TOWARD THE AUTHORITY'S ANNUAL PROCUREMENT OBLIGATION ESTABLISHED IN THIS
PARAGRAPH.
  C.  (1)  NO  LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY
SHALL SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY  PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES,  AND  SHALL  POST  ON  ITS WEBSITE, A SOLAR SOLICITATION PLAN THAT
SHALL INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING  PROPOSALS  FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVISION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER CLASSES SUBJECT TO COST-EFFECTIVENESS CONSIDERATIONS.  THE  AUTHORITY
SHALL ESTABLISH A SEPARATE SOLICITATION PROCESS FOR THE PROCUREMENT OF A
DEFINED  NUMBER OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENERGY
GENERATION PRODUCED BY EQUIPMENT  THAT  IS  BETWEEN  FIFTY-ONE  AND  TWO
HUNDRED FIFTY KILOWATTS IN SIZE.  RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION  WITHIN  THIS SIZE RANGE SHALL BE ELIGIBLE TO RECEIVE A SREC OFFER
PRICE EQUIVALENT TO THE WEIGHTED  AVERAGE  ACCEPTED  BID  PRICE  IN  THE
CONCURRENT  SOLICITATION  FOR RETAIL DISTRIBUTED SOLAR ENERGY GENERATION
SYSTEMS GREATER THAN TWO HUNDRED FIFTY KILOWATTS IN SIZE, PLUS AN  ADDI-
TIONAL  INCENTIVE  OF  UP  TO  TEN  PER CENT AS MAY BE DETERMINED BY THE
AUTHORITY TO ACCOUNT FOR COST DIFFERENCES BETWEEN THESE MARKET SEGMENTS.
THE SREC OFFER PRICE SHALL CONTINUE TO BE AVAILABLE UNTIL THE SOONER OF:
(I) THE ACCEPTANCE BY THE ELECTRIC DISTRIBUTION COMPANY OF  RESERVATIONS
FROM  QUALIFIED RETAIL DISTRIBUTED SOLAR ENERGY GENERATION FOR AVAILABLE
STANDARD OFFER  SRECS;  OR  (II)  THE  ELECTRIC  DISTRIBUTION  COMPANY'S
COMPLETION OF ITS NEXT ANNUAL SOLICITATION.
  (2) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (3) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND

A. 5713--C                         11

SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN PARAGRAPH B  OF  THIS
SUBDIVISION.
  (4)  THE  AUTHORITY'S  SREC  PROCUREMENT  SHALL BE CONSISTENT WITH THE
SEGMENT-SPECIFIC PERCENTAGES PROVIDED IN THE PLANS SUBMITTED PURSUANT TO
SUBPARAGRAPHS ONE AND THREE OF THIS PARAGRAPH. IF, HOWEVER, ON THE BASIS
OF THE ACTUAL SOLICITATION RESULTS, THE COLLECTIVE ANNUAL  COST  ASSOCI-
ATED  WITH SUCH PROCUREMENT WOULD EXCEED ONE AND ONE-HALF PERCENT OF THE
AUTHORITY'S ANNUAL RETAIL  ELECTRICITY  SALES  REVENUES,  THE  AUTHORITY
SHALL HAVE THE OPTION OF SUBSTITUTING, BY UP TO TWENTY-FIVE PERCENT, THE
NUMBER  OF  SRECS  PROCURED  FROM  THE  HIGHEST  COST SEGMENT WITH SRECS
PROCURED FROM QUALIFIED SOLAR ENERGY GENERATION OF ANY SIZE.
  D. (1) IF THE AUTHORITY DETERMINES THAT ITS  ANNUAL  EXPENDITURES  FOR
THE  PROCUREMENT  OF  SRECS, MADE FOR THE PURPOSES OF MEETING THE ANNUAL
REQUIREMENT SET FORTH IN SUBPARAGRAPH ONE OF PARAGRAPH B OF THIS  SUBDI-
VISION  FOR  A  COMPLIANCE YEAR, EXCEEDS ONE AND ONE-HALF PERCENT OF ITS
ANNUAL RETAIL ELECTRICITY REVENUES FOR SUCH COMPLIANCE  YEAR,  THEN  THE
ANNUAL REQUIREMENT FOR THE COMPLIANCE YEAR FOR WHICH THE AUTHORITY MAKES
ITS DETERMINATION SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE
IN  EACH  SUBSEQUENT  COMPLIANCE  YEAR  UNTIL  THIS  LIMITATION  ENDS AS
PROVIDED IN SUBPARAGRAPH TWO OF THIS PARAGRAPH.
  (2) IF THE LIMITATION PROVIDED FOR IN SUBPARAGRAPH ONE OF  THIS  PARA-
GRAPH  IS  TRIGGERED, IT SHALL END UPON A DETERMINATION BY THE AUTHORITY
THAT ITS ANNUAL EXPENDITURE FOR THE PROCUREMENT OF SRECS  MADE  FOR  THE
PURPOSES OF MEETING ITS ANNUAL REQUIREMENT FOR A COMPLIANCE YEAR DID NOT
EXCEED  ONE AND ONE-HALF PERCENT OF ITS ANNUAL RETAIL ELECTRICITY REVEN-
UES FOR SUCH  COMPLIANCE  YEAR.  FOR  THE  COMPLIANCE  YEAR  IMMEDIATELY
FOLLOWING  THE  END  OF  THE  LIMITATION PURSUANT TO THIS PARAGRAPH, THE
APPLICABLE ANNUAL REQUIREMENT SHALL BE  THE  REQUIREMENT  SET  FORTH  IN
SUBPARAGRAPH  ONE  OF PARAGRAPH B OF THIS SUBDIVISION FOR THE COMPLIANCE
YEAR IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH THE  LIMITATION
IN SUBPARAGRAPH ONE OF THIS PARAGRAPH WAS TRIGGERED. THE ANNUAL REQUIRE-
MENT  SHALL  CONTINUE  TO  INCREASE  IN  THE  INCREMENTS PROVIDED FOR IN
SUBPARAGRAPH ONE OF PARAGRAPH B OF THIS SUBDIVISION FOR EACH  SUBSEQUENT
YEAR  UNTIL  THE  ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH IN
SUCH SUBPARAGRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY.
  E. (1) NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND  NO  LATER
THAN  JULY  FIRST  OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO THOUSAND
TWENTY-ONE, THE AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER  OF  THE
ASSEMBLY,  MAJORITY  LEADER  OF THE SENATE, AND CHAIRS OF THE SENATE AND
ASSEMBLY ENERGY COMMITTEES, AND SHALL POST  ON  ITS  WEBSITE,  A  REPORT
REGARDING  ITS  PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN PARA-
GRAPH B OF THIS SUBDIVISION.
  (2) EACH REPORT THAT SHALL BE SUBMITTED  PURSUANT  TO  THIS  PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR  THE  TOTAL  OF  ALL CALENDAR YEARS TO DATE: (I) THE NUMBER OF SRECS
ASSOCIATED WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR  THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH
B  OF  THIS  SUBDIVISION;  (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIB-
UTED  SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT THAT IS BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT  OF  ANY  SIZE  THAT  WERE
PROCURED; (III) THE NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE
AGREEMENTS;  AND  (IV)  THE  ANNUAL RETAIL ELECTRICITY SALES REVENUE AND

A. 5713--C                         12

EXPENDITURES MADE FOR THE PROCUREMENT OF SRECS FOR THE PURPOSE OF  MEET-
ING  THE  APPLICABLE  ANNUAL REQUIREMENT, PROVIDED THAT SUCH INFORMATION
NEED ONLY BE REPORTED FOR THE PREVIOUS CALENDAR YEAR.
  F.  EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SUBDIVISION, NOT OTHER-
WISE REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE PREVAILING  RATE
OF  WAGES  PURSUANT  TO  ARTICLE  EIGHT  OF  THE LABOR LAW, SHALL PAY AN
EMPLOYEE UNDER CONTRACT FOR THE INSTALLATION OF QUALIFIED  SOLAR  ENERGY
GENERATION EQUIPMENT RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE A WAGE
OF  NOT  LESS  THAN  THE  PREVAILING  RATE OF WAGES FOR SUCH WORK IN THE
LOCALITY WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT  SHALL  BE  IN
EFFECT  FOR  THE  DURATION  OF  THE AVAILABILITY OF THE INCENTIVE STREAM
ESTABLISHED PURSUANT TO THIS SUBDIVISION AND  IN  NO  EVENT  SHALL  SUCH
REQUIREMENT  EXTEND  BEYOND  THE  AVAILABILITY OF SUCH INCENTIVE STREAM.
EVERY CONTRACTOR SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH SHALL MAIN-
TAIN PAYROLL RECORDS IN ACCORDANCE WITH SECTION TWO  HUNDRED  TWENTY  OF
THE LABOR LAW.
  S  5.  Sections 1020-hh, 1020-ii and 1020-jj of the public authorities
law, as renumbered by chapter 433 of the laws of  2009,  are  renumbered
sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
to read as follows:
  S  1020-HH. PROCUREMENT OF SOLAR RENEWABLE ENERGY CREDITS. 1.  AS USED
IN THIS SECTION:
  (A) "BUILDING INTEGRATED PHOTOVOLTAIC EQUIPMENT" MEANS A  PHOTOVOLTAIC
DEVICE  THAT  DIRECTLY FUNCTIONS AS A PART OF THE ENVELOPE OF A BUILDING
INCLUDING INTEGRATED ROOF COVER, FACADE  OR  BUILDING  CLADDING,  GLAZED
SURFACES, SOLAR SHADING DEVICES, CANOPIES AND SKYLIGHTS;
  (B)  "PHOTOVOLTAIC DEVICE" MEANS A SYSTEM OF COMPONENTS THAT GENERATES
ELECTRICITY FROM  INCIDENTAL  SUNLIGHT  BY  MEANS  OF  THE  PHOTOVOLTAIC
EFFECT,  WHETHER  OR  NOT THE DEVICE IS COUPLED WITH A DEVICE CAPABLE OF
STORING THE ENERGY PRODUCED FOR LATER USE;
  (C) "PREVAILING RATE OF WAGES" SHALL HAVE THE  SAME  MEANING  AS  SUCH
TERM  IS  DEFINED  IN  PARAGRAPH  A  OF  SUBDIVISION FIVE OF SECTION TWO
HUNDRED TWENTY OF THE LABOR LAW;
  (D) "QUALIFIED SOLAR ENERGY  GENERATION"  MEANS  POWER  GENERATED  (I)
WITHIN  FIFTEEN  YEARS  OF THE DATE THE QUALIFIED SOLAR ENERGY GENERATOR
RECEIVED PERMISSION FROM THE ELECTRIC DISTRIBUTION COMPANY TO  ENERGIZE;
(II)  BY  A  PHOTOVOLTAIC  DEVICE  THAT IS CONNECTED TO THE DISTRIBUTION
SYSTEM OR AREA SUBSTATIONS AND ASSOCIATED FACILITIES THAT  COMPRISE  THE
LOCAL  AREA  NETWORK  OF  AN  ELECTRIC  DISTRIBUTION COMPANY SERVING THE
STATE; (III) AFTER JANUARY  FIRST,  TWO  THOUSAND  ELEVEN;  PHOTOVOLTAIC
DEVICE  THAT  IS  CONNECTED  TO  THE  DISTRIBUTION SYSTEM OF AN ELECTRIC
DISTRIBUTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN;
  (E) "QUALIFIED SOLAR ENERGY GENERATOR" MEANS THE OWNER OF A  PHOTOVOL-
TAIC DEVICE OR DEVICES THAT PRODUCES QUALIFIED SOLAR ENERGY GENERATION;
  (F) "RETAIL DISTRIBUTED SOLAR ENERGY GENERATION" MEANS QUALIFIED SOLAR
ENERGY  GENERATION  PRODUCED  BY A PHOTOVOLTAIC DEVICE THAT IS INTERCON-
NECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER SIDE OF  THE  ELECTRIC
DISTRIBUTION COMPANY METER;
  (G)  "SMALL  RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION" MEANS RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  A  PHOTOVOLTAIC  DEVICE
THAT IS EQUAL TO OR LESS THAN FIFTY KILOWATTS IN SIZE;
  (H)  "SOLAR  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF SRECS FROM A QUALIFIED  SOLAR  ENERGY
GENERATOR; AND

A. 5713--C                         13

  (I)  "SOLAR RENEWABLE ENERGY CREDIT" OR "SREC" MEANS THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF QUALIFIED  SOLAR  ENERGY
GENERATION.
  2. (A) THE AUTHORITY SHALL ANNUALLY PROCURE, AT MINIMUM, SRECS TO MEET
THE  FOLLOWING  PERCENTAGES  OF  THE AUTHORITY'S TOTAL ELECTRIC SALES IN
EACH COMPLIANCE YEAR:
COMPLIANCE            ANNUAL
  YEAR              REQUIREMENT
  2013                0.33%
  2014                0.50%
  2015                0.75%
  2016                1.00%
  2017                1.25%
  2018                1.50%
  2019                1.75%
  2020                2.00%
  (B) AT LEAST TWENTY PERCENT OF THE ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  SUBDIVISION  SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCI-
ATED WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION; AND AT LEAST
AN ADDITIONAL THIRTY PERCENT OF THE  ANNUAL  OBLIGATION  ESTABLISHED  IN
THIS  SUBDIVISION  SHALL BE MET THROUGH THE PROCUREMENT OF SRECS ASSOCI-
ATED WITH RETAIL DISTRIBUTED SOLAR ENERGY GENERATION PRODUCED BY  EQUIP-
MENT OF ANY SIZE.
  (C) OBLIGATIONS FOR THE PROCUREMENT OF SRECS ASSOCIATED WITH QUALIFIED
SOLAR ENERGY GENERATION SHALL CONTINUE UNTIL ALL EXISTING SOLAR PURCHASE
AGREEMENTS HAVE EXPIRED.
  (D)  THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS SUBDI-
VISION THROUGH THE PROCUREMENT OF SRECS TOGETHER WITH OR  SEPARATE  FROM
THE ASSOCIATED QUALIFIED SOLAR ENERGY GENERATION.
  3.  (A)  NO  LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY
SHALL SUBMIT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY  PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES,  AND  SHALL  POST  ON  ITS WEBSITE, A SOLAR SOLICITATION PLAN THAT
SHALL INCLUDE A TIMETABLE AND METHODOLOGY FOR SOLICITING  PROPOSALS  FOR
SRECS ASSOCIATED WITH QUALIFIED SOLAR ENERGY GENERATION OTHER THAN SMALL
RETAIL  DISTRIBUTED SOLAR ENERGY GENERATION, FOR THE PURPOSE OF FULFILL-
ING ITS OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.  THE
AUTHORITY'S SOLAR SOLICITATION PLAN SHALL BE DESIGNED TO FOSTER A DIVER-
SITY OF SOLAR PROJECT SIZES AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOM-
ER CLASSES SUBJECT TO COST-EFFECTIVENESS CONSIDERATIONS.  THE  AUTHORITY
SHALL ESTABLISH A SEPARATE SOLICITATION PROCESS FOR THE PROCUREMENT OF A
DEFINED  NUMBER OF SRECS ASSOCIATED WITH RETAIL DISTRIBUTED SOLAR ENERGY
GENERATION PRODUCED BY EQUIPMENT  THAT  IS  BETWEEN  FIFTY-ONE  AND  TWO
HUNDRED FIFTY KILOWATTS IN SIZE.  RETAIL DISTRIBUTED SOLAR ENERGY GENER-
ATION  WITHIN  THIS SIZE RANGE SHALL BE ELIGIBLE TO RECEIVE A SREC OFFER
PRICE EQUIVALENT TO THE WEIGHTED  AVERAGE  ACCEPTED  BID  PRICE  IN  THE
CONCURRENT  SOLICITATION  FOR RETAIL DISTRIBUTED SOLAR ENERGY GENERATION
SYSTEMS GREATER THAN TWO HUNDRED FIFTY KILOWATTS IN SIZE, PLUS AN  ADDI-
TIONAL  INCENTIVE  OF  UP  TO  TEN  PER CENT AS MAY BE DETERMINED BY THE
AUTHORITY,  TO  ACCOUNT  FOR  COST  DIFFERENCES  BETWEEN  THESE   MARKET
SEGMENTS.  THE SREC OFFER PRICE SHALL CONTINUE TO BE AVAILABLE UNTIL THE
SOONER OF: (I) THE ACCEPTANCE BY THE ELECTRIC  DISTRIBUTION  COMPANY  OF
RESERVATIONS  FROM  QUALIFIED RETAIL DISTRIBUTED SOLAR ENERGY GENERATION
FOR AVAILABLE STANDARD OFFER SRECS; OR (II)  THE  ELECTRIC  DISTRIBUTION
COMPANY'S COMPLETION OF ITS NEXT ANNUAL SOLICITATION.

A. 5713--C                         14

  (B) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN AND SHALL SUBMIT
TO  THE COMPTROLLER, GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESI-
DENT OF THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMIT-
TEES, AND  SHALL  POST  ON  ITS  WEBSITE,  ITS  SOLAR  PROCUREMENT  PLAN
COMPRISED  OF  ANY  SOLAR  PURCHASE AGREEMENTS FOR SRECS ASSOCIATED WITH
QUALIFIED SOLAR ENERGY GENERATION OTHER THAN  SMALL  RETAIL  DISTRIBUTED
SOLAR  ENERGY  GENERATION.  THE  COMPTROLLER  SHALL  REVIEW SUCH PLAN TO
ASSESS WHETHER IT IS THE RESULT OF A FAIR, OPEN, COMPETITIVE AND  TRANS-
PARENT  PROCESS  AND SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE  AND
ASSEMBLY ENERGY COMMITTEES REGARDING THE RESULTS OF SUCH ASSESSMENT.
  (C) NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
SUBMIT  TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE SENATE, AND CHAIRS OF THE SENATE AND ASSEMBLY ENERGY COMMITTEES, AND
SHALL POST ON ITS WEBSITE, A PLAN FOR THE ACHIEVEMENT OF ITS  OBLIGATION
PERTAINING  TO  THE  PROCUREMENT  OF  SRECS ASSOCIATED WITH SMALL RETAIL
DISTRIBUTED SOLAR ENERGY GENERATION ESTABLISHED IN  SUBDIVISION  TWO  OF
THIS SECTION.
  (D)  THE  AUTHORITY'S  SREC  PROCUREMENT  SHALL BE CONSISTENT WITH THE
SEGMENT-SPECIFIC PERCENTAGES PROVIDED IN THE PLANS SUBMITTED PURSUANT TO
PARAGRAPHS (A) AND (C) OF THIS SUBDIVISION. IF, HOWEVER, ON THE BASIS OF
THE ACTUAL SOLICITATION RESULTS, THE COLLECTIVE ANNUAL  COST  ASSOCIATED
WITH  SUCH  PROCUREMENT  WOULD  EXCEED  ONE  AND ONE-HALF PERCENT OF THE
AUTHORITY'S ANNUAL RETAIL  ELECTRICITY  SALES  REVENUES,  THE  AUTHORITY
SHALL HAVE THE OPTION OF SUBSTITUTING, BY UP TO TWENTY-FIVE PERCENT, THE
NUMBER  OF  SRECS  PROCURED  FROM  THE  HIGHEST  COST SEGMENT WITH SRECS
PROCURED FROM QUALIFIED SOLAR ENERGY GENERATION OF ANY SIZE.
  4. NO LATER THAN JANUARY FIRST, TWO  THOUSAND  TWELVE,  THE  AUTHORITY
SHALL ESTABLISH A TARIFF THAT IT SHALL PAY TO APPLICABLE QUALIFIED SOLAR
ENERGY  GENERATORS  WITH  WHICH THE AUTHORITY ENTERS INTO SOLAR PURCHASE
AGREEMENTS FOR THE PROCUREMENT OF SRECS  ASSOCIATED  WITH  SMALL  RETAIL
DISTRIBUTED  SOLAR  ENERGY  GENERATION  FOR THE PURPOSE OF ACHIEVING THE
AUTHORITY'S OBLIGATIONS PERTAINING TO SRECS ASSOCIATED WITH SUCH  GENER-
ATION  ESTABLISHED  IN  SUBDIVISION  TWO  OF THIS SECTION. THE AUTHORITY
SHALL CONSIDER COST DIFFERENCES BETWEEN VARIOUS MARKET SEGMENTS, INCLUD-
ING RESIDENTIAL, COMMERCIAL AND NOT-FOR-PROFIT, AND  APPLICATIONS,  SUCH
AS  BUILDING  INTEGRATED  PHOTOVOLTAIC  EQUIPMENT,  AND  SHALL DETERMINE
WHETHER SUCH COST DIFFERENCES ARE MATERIAL SUCH THAT MARKET OR  APPLICA-
TION  SPECIFIC  TARIFFS  ARE  WARRANTED.   THE AUTHORITY SHALL, AT LEAST
ANNUALLY, REVIEW SUCH TARIFFS AND ADJUST AS  NECESSARY  TO  ACHIEVE  ITS
OBLIGATIONS PERTAINING TO SRECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED
SOLAR  ENERGY GENERATION ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
THE AUTHORITY MAY INSTITUTE, AFTER NOTICE  AND  OPPORTUNITY  FOR  PUBLIC
INPUT,  A  MECHANISM THAT ALLOWS FOR ADJUSTMENT TO THE TARIFF RATE BASED
ON THE LEVEL OF THE AUTHORITY'S PROCUREMENT OF  SRECS  RELATIVE  TO  ITS
ANNUAL TARGETS FOR SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION. ANY
SUCH  ADJUSTMENTS  SHALL  BE APPLIED PROSPECTIVELY, AND SHALL NOT AFFECT
THE TARIFF RATE OF SMALL RETAIL  DISTRIBUTED  SOLAR  GENERATION  ALREADY
ENROLLED.
  5.  (A)  IF  THE AUTHORITY DETERMINES THAT ITS ANNUAL EXPENDITURES FOR
THE PROCUREMENT OF SRECS, MADE FOR THE PURPOSES OF  MEETING  THE  ANNUAL
REQUIREMENT  SET  FORTH  IN  PARAGRAPH  (A)  OF  SUBDIVISION TWO OF THIS
SECTION FOR A COMPLIANCE YEAR, EXCEEDS ONE AND ONE-HALF PERCENT  OF  ITS
ANNUAL  RETAIL  ELECTRICITY  REVENUES FOR SUCH COMPLIANCE YEAR, THEN THE
ANNUAL REQUIREMENT FOR THE COMPLIANCE YEAR FOR WHICH THE AUTHORITY MAKES
ITS DETERMINATION SHALL CONTINUE TO BE THE ANNUAL REQUIREMENT APPLICABLE

A. 5713--C                         15

IN EACH  SUBSEQUENT  COMPLIANCE  YEAR  UNTIL  THIS  LIMITATION  ENDS  AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  IF  THE LIMITATION PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IS TRIGGERED, IT SHALL END UPON A DETERMINATION  BY  THE  AUTHORITY
THAT  ITS  ANNUAL  EXPENDITURE FOR THE PROCUREMENT OF SRECS MADE FOR THE
PURPOSES OF MEETING ITS ANNUAL REQUIREMENT FOR A COMPLIANCE YEAR DID NOT
EXCEED ONE AND ONE-HALF PERCENT OF ITS ANNUAL RETAIL ELECTRICITY  REVEN-
UES  FOR  SUCH  COMPLIANCE  YEAR.  FOR  THE  COMPLIANCE YEAR IMMEDIATELY
FOLLOWING THE END OF THE LIMITATION  PURSUANT  TO  THIS  PARAGRAPH,  THE
APPLICABLE  ANNUAL  REQUIREMENT  SHALL  BE  THE REQUIREMENT SET FORTH IN
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR THE COMPLIANCE YEAR
IMMEDIATELY FOLLOWING THE COMPLIANCE YEAR FOR WHICH  THE  LIMITATION  IN
PARAGRAPH  (A) OF THIS SUBDIVISION WAS TRIGGERED. THE ANNUAL REQUIREMENT
SHALL CONTINUE TO INCREASE IN THE INCREMENTS PROVIDED FOR  IN  PARAGRAPH
(A)  OF  SUBDIVISION  TWO OF THIS SECTION FOR EACH SUBSEQUENT YEAR UNTIL
THE ANNUAL REQUIREMENT REACHES THE PERCENTAGE SET FORTH  IN  SUCH  PARA-
GRAPH FOR COMPLIANCE YEAR TWO THOUSAND TWENTY.
  6.  (A)  NO LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN, AND NO LATER
THAN JULY FIRST OF EACH YEAR THEREAFTER THROUGH THE  YEAR  TWO  THOUSAND
TWENTY-ONE,  THE  AUTHORITY SHALL REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE, AND CHAIRS  OF  THE  SENATE
AND  ASSEMBLY ENERGY COMMITTEES, AND SHALL POST ON ITS WEBSITE, A REPORT
REGARDING ITS PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN  SUBDI-
VISION TWO OF THIS SECTION.
  (B)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR THE TOTAL OF ALL CALENDAR YEARS TO DATE: (I)  THE  NUMBER  OF  SRECS
ASSOCIATED  WITH  QUALIFIED  SOLAR  ENERGY  GENERATION  RETIRED  FOR THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN  SUBDIVI-
SION  TWO OF THIS SECTION; (II) THE NUMBER OF SUCH SRECS EACH ASSOCIATED
WITH SMALL RETAIL DISTRIBUTED SOLAR ENERGY GENERATION,  RETAIL  DISTRIB-
UTED  SOLAR  ENERGY  GENERATION  PRODUCED  BY  EQUIPMENT THAT IS BETWEEN
FIFTY-ONE AND TWO HUNDRED FIFTY KILOWATTS IN SIZE AND RETAIL DISTRIBUTED
SOLAR ENERGY GENERATION PRODUCED BY EQUIPMENT  OF  ANY  SIZE  THAT  WERE
PROCURED; (III) THE NUMBER OF SUCH SRECS PROCURED THROUGH SOLAR PURCHASE
AGREEMENTS;  (IV)  THE  AMOUNT PAID TO QUALIFIED SOLAR ENERGY GENERATORS
FOR SRECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED SOLAR  ENERGY  GENER-
ATION  THROUGH  THE  TARIFFS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF
THIS SECTION; AND (V) THE ANNUAL RETAIL ELECTRICITY  SALES  REVENUE  AND
EXPENDITURES  MADE FOR THE PROCUREMENT OF SRECS FOR THE PURPOSE OF MEET-
ING THE APPLICABLE ANNUAL REQUIREMENT, PROVIDED  THAT  SUCH  INFORMATION
NEED ONLY BE REPORTED FOR THE PREVIOUS CALENDAR YEAR.
  7.  EVERY  CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION, NOT OTHERWISE
REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE  PREVAILING  RATE  OF
WAGES  PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY AN EMPLOYEE
UNDER CONTRACT FOR THE INSTALLATION OF QUALIFIED SOLAR ENERGY GENERATION
EQUIPMENT RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE  A  WAGE  OF  NOT
LESS  THAN  THE  PREVAILING  RATE OF WAGES FOR SUCH WORK IN THE LOCALITY
WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN EFFECT  FOR
THE  DURATION  OF  THE  AVAILABILITY OF THE INCENTIVE STREAM ESTABLISHED
PURSUANT TO THIS SECTION AND IN NO EVENT SHALL SUCH  REQUIREMENT  EXTEND
BEYOND  THE  AVAILABILITY  OF  SUCH INCENTIVE STREAM.   EVERY CONTRACTOR
SUBJECT TO THE PROVISIONS OF THIS  SUBDIVISION  SHALL  MAINTAIN  PAYROLL
RECORDS IN ACCORDANCE WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
  S 6. Section 1854 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:

A. 5713--C                         16

  19.  TO  IMPLEMENT THE PROVISIONS OF PARAGRAPH (F) OF SUBDIVISION TWO,
PARAGRAPH (C) OF SUBDIVISION THREE  AND  SUBDIVISION  SEVEN  OF  SECTION
SIXTY-SIX-M OF THE PUBLIC SERVICE LAW.
  S  7. 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 8. This act shall take effect immediately.

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The New York State Senate

assembly Bill A5713C

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assembly Bill A5713C

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Kevin Cahill

Michelle Schimel

James F. Brennan

Linda Rosenthal

Marcos Crespo

Barbara Lifton

William Colton

Donna Lupardo

Amy Paulin

Sam Hoyt

George Latimer

Sandy Galef

Jeffrey Dinowitz

Guillermo Linares

Francisco Moya

Addie Jenne

Ellen C. Jaffee

Peter Rivera

Mike Spano

Mark J.F. Schroeder

Thomas Abinanti

Fred Thiele

Harvey Weisenberg

Michael Benedetto

Sam Roberts

Aileen Gunther

Alan Maisel

Multi-Sponsors

Jonathan Bing

Phil Boyle

Robert Castelli

John Ceretto

James Conte

Steven Cymbrowitz

Deborah Glick

Carl Heastie

Steve Katz

Joseph Lentol

David McDonough

John McEneny

Joan Millman

Michael Montesano

L. Dean Murray

Andrew Raia

Robert Reilly

Joseph Saladino

Teresa Sayward

Robin Schimminger

Robert Sweeney

Keith L.T. Wright

A5713 - Details

A5713 - Summary

A5713 - Bill Text download pdf

Co-Sponsors

Kevin Cahill

Michelle Schimel

James F. Brennan

Linda Rosenthal

Marcos Crespo

Barbara Lifton

William Colton

Donna Lupardo

Amy Paulin

Sam Hoyt

George Latimer

Sandy Galef

Jeffrey Dinowitz

Guillermo Linares

Francisco Moya

Addie Jenne

Ellen C. Jaffee