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

                                  1938

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. ENGLEBRIGHT, COOK, SCARBOROUGH, DINOWITZ, LENTOL,
  AUBRY  --  Multi-Sponsored  by  --  M.  of  A. BRENNAN, CAHILL, CLARK,
  COLTON,  CYMBROWITZ,  GALEF,  GOTTFRIED,  HOOPER,  JACOBS,   V. LOPEZ,
  MARKEY,  MILLMAN,  ORTIZ,  PERRY,  SWEENEY, WEISENBERG, WRIGHT -- read
  once and referred to the Committee on Energy

AN ACT to amend the public service law and the public  authorities  law,
  in  relation  to  establishing the clean energy fund to improve energy
  efficiency and provide for the development of clean  energy  technolo-
  gies;  to  amend  the public service law, in relation to promoting the
  distribution of clean energy resources, requiring  the  use  of  clean
  energy  technologies by electric corporations, and net energy metering
  for wind electric generating facilities; to amend the public  authori-
  ties law, in relation to requiring the power authority of the state of
  New York and the Long Island power authority to establish clean energy
  initiatives;  and  to  repeal certain provisions of the public service
  law relating to non-residential customer-generators

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

  Section  1.  Legislative  findings. The legislature finds and declares
that job  creation;  economic  development;  safe  and  reliable  energy
services  at  an  affordable  price; reduction of energy cost burden for
low-income households, small businesses and farms; and the protection of
the health of the state's citizens and  its  environment  are  necessary
components  of a sound energy policy. The legislature further finds that
the creation and preservation of  jobs  in  New  York,  lowering  energy
bills,  protecting  public  health,  and improving the conditions of our
parks and rivers can all be enhanced through policies and programs  that
encourage energy efficiency and clean electricity generation.
  S  2.  The section heading and subdivisions 1 and 2 of section 66-1 of
the public service law, the section heading, paragraph (a)  of  subdivi-

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

                                                           LBD05393-01-3

A. 1938                             2

sion 1 and subdivision 2 as amended and paragraph (c-1) of subdivision 1
as added by chapter 483 of the laws of 2008, subdivision 1 as amended by
chapter  721  of  the laws of 2006 and paragraph (f) of subdivision 1 as
amended  by  chapter  7  of  the  laws  of  2010, are amended to read as
follows:
  Net energy metering for [residential, farm  service  and  non-residen-
tial]  wind electric generating systems. 1. Definitions. As used in this
section, the following terms shall have the following meanings:
  (a) "Customer-generator" means a residential  customer,  farm  service
customer  [or  non-residential]  AND/OR  SMALL  COMMERCIAL OR INDUSTRIAL
customer of an electric corporation, who owns or operates wind  electric
generating equipment LOCATED AND USED AT THE CUSTOMER'S PREMISES.
  (b)  "Residential  customer-generator"  means  a  customer who owns or
operates wind electric generating equipment located and used at  his  or
her primary residence.
  (c)  "Farm service customer-generator" means a customer of an electric
corporation who owns and operates  wind  electric  generating  equipment
located  and  used on land used in agricultural production as defined in
subdivision four of section three hundred one  of  the  agriculture  and
markets  law,  and  which is also the location of the customer's primary
residence.
  [(c-1) "Non-residential customer-generator" means  a  customer  of  an
electric  corporation  which  owns  or operates wind electric generating
equipment located and used at its premises.]
  (d) "Net energy meter" means a meter that measures the reverse flow of
electricity to register the difference between the electricity  supplied
by an electric corporation to the customer-generator and the electricity
provided to the corporation by that customer-generator.
  (e) "Net energy metering" means the use of a net energy meter to meas-
ure,  during  the billing period applicable to a customer-generator, the
net amount  of  electricity  supplied  by  an  electric  corporation  or
provided to the corporation by a customer-generator.
  (f) "Wind electric generating equipment" means one or more wind gener-
ators  with a combined rated capacity of not more than twenty-five kilo-
watts for a residential  customer-generator,  and  not  more  than  five
hundred  kilowatts  for a farm service customer-generator, [and not more
than two thousand kilowatts for a  non-residential  customer-generator;]
that  is manufactured, installed, and operated in accordance with appli-
cable government and industry standards, that is connected to the  elec-
tric  system  and  operated  in  parallel with an electric corporation's
transmission and  distribution  facilities,  and  that  is  operated  in
compliance  with  any  standards and requirements established under this
section.
  (G) "SMALL COMMERCIAL  OR  INDUSTRIAL  CUSTOMER-GENERATOR"  MEANS  ANY
BUSINESS WHICH EMPLOYS UP TO ONE HUNDRED EMPLOYEES.
  2.  Interconnection  and  net energy metering. An electric corporation
shall provide for the interconnection and net energy  metering  of  wind
electric generating equipment owned or operated by a customer-generator;
provided  that  the customer-generator enters into a net energy metering
contract with the corporation or complies  with  the  corporation's  net
energy  metering  schedule  and complies with standards and requirements
established under this section, AND PROVIDED FURTHER THAT THE  INTERCON-
NECTION OF WIND ELECTRIC GENERATING EQUIPMENT ON PARCELS OF LAND SMALLER
THAN  FIVE ACRES SHALL BE CONTINGENT UPON A LOCAL ORDINANCE THAT SPECIF-
ICALLY ADDRESSES THE SITING OF WIND ELECTRIC GENERATING EQUIPMENT, OR  A
VARIANCE,  OR  OTHER  ACTION BY A LOCAL ZONING AUTHORITY.  The customer-

A. 1938                             3

generator shall be responsible for payment of one-half of the expense of
such interconnection for wind electric generating equipment with a rated
capacity of more than twenty-five kilowatts.
  S  3.  Subparagraph  (ii) of paragraph (a) of subdivision 3 of section
66-l of the public service law is REPEALED.
  S 4. Subparagraph (iii) of paragraph (c) of subdivision 3  of  section
66-l of the public service law is REPEALED.
  S  5.  Subparagraph  (ii) of paragraph (c) of subdivision 3 of section
66-l of the public service law, as amended by chapter 7 of the  laws  of
2010, is amended to read as follows:
  (ii)  in the case of a farm service customer-generator with a combined
rated capacity of not more than five hundred kilowatts, up to a  maximum
of five thousand dollars[; and].
  S  6.  The  public service law is amended by adding three new sections
66-n, 66-o and 66-p to read as follows:
  S 66-N. CLEAN ENERGY FUND. 1. FOR PURPOSES OF THIS SECTION:
  (A) "CLEAN ENERGY TECHNOLOGIES" MEANS ELECTRICITY GENERATION TECHNOLO-
GIES THAT PRODUCE ELECTRICITY USING SOLAR THERMAL ENERGY, PHOTOVOLTAICS,
WIND, FUEL CELLS, GEOTHERMAL,  METHANE  WASTE  AND  SUSTAINABLY  MANAGED
BIOMASS  AND  THERMAL  ENERGY PRODUCED BY SOLAR TECHNOLOGIES AND THERMAL
ENERGY TRANSFER FROM SURFACE WATER, GROUND WATER OR THE EARTH.  IF AFTER
THE EFFECTIVE DATE OF THIS SECTION, NEW ENERGY TECHNOLOGIES EMERGE  THAT
WERE  UNFORESEEABLE  AT THE TIME OF SUCH EFFECTIVE DATE THE COMMISSIONER
OF ENVIRONMENTAL CONSERVATION MAY DESIGNATE SUCH TECHNOLOGIES  AS  CLEAN
ENERGY TECHNOLOGIES BASED UPON A FINDING THAT THE AIR, WATER, ECOSYSTEM,
PUBLIC  HEALTH  AND  WASTE DISPOSAL IMPACTS OF SUCH NEW TECHNOLOGIES ARE
COMPARABLE TO THOSE OF THE CLEAN ENERGY TECHNOLOGIES OTHERWISE LISTED IN
THIS PARAGRAPH. ANY SUCH DESIGNATION SHALL ONLY TAKE PLACE  FOLLOWING  A
COMPLETE  OPPORTUNITY  FOR PUBLIC REVIEW AND COMMENT CONSISTENT WITH THE
STATE ADMINISTRATIVE PROCEDURE ACT.
  (B) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN ELECTRIC CORPORATION  OR,
IF  APPLICABLE,  AN  AFFILIATE  OF AN ELECTRIC CORPORATION, OR A MUNICI-
PALITY ENGAGED IN THE DISTRIBUTION OF ELECTRICITY DIRECTLY TO CONSUMERS.
  (C) "ENERGY EFFICIENCY" MEANS MEASURES THAT HELP  CONSUMERS  OF  ELEC-
TRICITY  USE  LESS  ENERGY  (ELECTRICITY, NATURAL GAS OR OTHER FUELS) AT
THEIR PREMISES WHILE OBTAINING THE SAME OR MORE BENEFITS FROM SUCH ENER-
GY USE.
  (D) "NYSERDA" MEANS THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY AS DESIGNATED PURSUANT TO SECTION EIGHTEEN  HUNDRED  FIFTY-TWO
OF THE PUBLIC AUTHORITIES LAW.
  (E)  "SOLID  WASTE" SHALL HAVE THE SAME MEANING AS IS ASCRIBED TO SUCH
TERM PURSUANT TO SECTION 27-0501 OF THE ENVIRONMENTAL CONSERVATION LAW.
  (F) "SUSTAINABLY MANAGED BIOMASS" MEANS  ANAEROBIC  DIGESTION  OF  ANY
WASTE  OR  COMBUSTION OF ANY OF THE FOLLOWING SUBSTANCES: CAPTURED LAND-
FILL METHANE, SECONDARY WOOD WASTE (WHICH SHALL INCLUDE ONLY NON-TREATED
WOOD WASTE AND SHALL BE LIMITED TO SAWDUST, WOOD CHIPS AND WOOD SHAVINGS
PRODUCED AS BY-PRODUCTS IN THE MILLING, PROCESSING OR  MANUFACTURING  OF
WOOD PRODUCTS), WOODY AGRICULTURAL WASTE AND SUSTAINABLE BIO-CROPS. SUCH
TERM  SHALL NOT INCLUDE COMBUSTION OR PYROLYSIS OF SOLID WASTES, TIMBER,
FOREST FLOOR SWEEPINGS AND HERBACEOUS  CROP  RESIDUES,  WHETHER  OR  NOT
ENERGY IS RECOVERED THEREFROM.
  2.  (A) ON AND AFTER JULY FIRST, TWO THOUSAND FOURTEEN, THE COMMISSION
SHALL CONTINUE THE TOTAL LEVEL OF INVESTMENT IN  ENERGY  EFFICIENCY  AND
CLEAN ENERGY TECHNOLOGIES REQUIRED OF ELECTRIC DISTRIBUTION COMPANIES IN
CALENDAR  YEAR TWO THOUSAND NINE. THE COMMISSION IS FURTHER DIRECTED, AS
A GOAL, TO INCREASE SUCH INVESTMENTS OVER THE NEXT FIVE YEARS UNTIL SUCH

A. 1938                             4

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

A. 1938                             5

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

A. 1938                             6

REQUIREMENT SHALL BE INCREASED BY ONE PERCENT EACH YEAR THEREAFTER UNTIL
THE AMOUNT OF ENERGY REQUIRED FROM CLEAN ENERGY TECHNOLOGIES REACHES TEN
PERCENT OR UNTIL SUCH LATER DATE THAT THE  COMMISSION  SHALL  DETERMINE;
PROVIDED,  HOWEVER,  THAT THE COMMISSION SHALL NOT DECREASE THE REQUIRED
PERCENTAGE AT ANY TIME.
  3. THE COMMISSION SHALL REVIEW ELECTRICITY PRODUCTS SOLD BY EACH ELEC-
TRIC CORPORATION IN THE STATE ON A PERIODIC BASIS  TO  ENSURE  THAT  THE
REQUIREMENTS  SET  FORTH IN SUBDIVISION TWO OF THIS SECTION ARE MET. THE
COMMISSION SHALL REVIEW ITS REGULATIONS AND  REQUIREMENTS  FOR  ENVIRON-
MENTAL  DISCLOSURE LABELS TO ENSURE THAT INFORMATION PROVIDED TO CUSTOM-
ERS CONCERNING CLEAN ENERGY TECHNOLOGIES IS  CLEAR  AND  UNDERSTANDABLE,
AND  CONSIDER WHETHER IT IS APPROPRIATE TO REQUIRE ALL DISCLOSURE LABELS
TO INDICATE THE MINIMUM PERCENTAGE OF ENERGY REQUIRED FROM CLEAN  ENERGY
TECHNOLOGIES PURSUANT TO THIS SECTION.
  4.  AN  ELECTRIC  CORPORATION  MAY  SATISFY  THE  REQUIREMENTS OF THIS
SECTION BY ENTERING INTO CONVERSION TRANSACTIONS ESTABLISHED PURSUANT TO
THE COMMISSION'S ENVIRONMENTAL DISCLOSURE PROGRAM OR SUCH OTHER  TRADING
PROGRAM  THAT  THE COMMISSION MAY ESTABLISH. THE COMMISSION SHALL ESTAB-
LISH A COMPLIANCE PROTOCOL THAT PERMITS ELECTRIC CORPORATIONS  TO  ENTER
INTO  CONVERSION TRANSACTIONS OR PURCHASE CREDITS FOR ENERGY SUPPLIED TO
MEET THE CLEAN ENERGY REQUIREMENT BY  ELECTRIC  CORPORATIONS  AFTER  THE
EFFECTIVE  DATE  OF  THIS  SECTION  AND  BEFORE JULY FIRST, TWO THOUSAND
SIXTEEN. SUCH PROTOCOL SHALL ALLOW BANKING OF CREDITS FOR ELECTRIC ENER-
GY FROM CLEAN ENERGY TECHNOLOGIES SUPPLIED IN EXCESS OF REQUIREMENTS FOR
A PERIOD OF TWO YEARS, AND MAY ALLOW COMPLIANCE TO BE DEMONSTRATED WITH-
IN THREE MONTHS OF THE END OF THE CALENDAR YEAR IN ORDER  TO  ALLOW  FOR
COMPLIANCE VIA CONVERSION TRANSACTIONS OR A TRADING PROGRAM.
  S 7. Section 1005 of the public authorities law is amended by adding a
new subdivision 24 to read as follows:
  24.  TO ESTABLISH A CLEAN ENERGY INITIATIVE TO PROVIDE ENERGY SERVICES
TO QUALIFIED PUBLIC PARTICIPANTS FOR THE INSTALLATION  OF  ENERGY  EFFI-
CIENCY MEASURES AND CLEAN ENERGY TECHNOLOGIES.
  (A) FOR THE PURPOSES OF THIS SUBDIVISION:
  (1)  "CLEAN  ENERGY  TECHNOLOGIES"  SHALL HAVE THE SAME DEFINITION SET
FORTH IN SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (2) "ENERGY EFFICIENCY" SHALL HAVE THE SAME DEFINITION  SET  FORTH  IN
SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (3)  "QUALIFIED  PUBLIC  PARTICIPANT"  MEANS  A SCHOOL DISTRICT, CITY,
TOWN, VILLAGE, COUNTY, STATE AGENCY, PUBLIC BENEFIT CORPORATION OR STATE
UNIVERSITY.
  (B) THE AUTHORITY SHALL INVEST IN THE CLEAN ENERGY INITIATIVE NOT LESS
THAN ONE HUNDRED MILLION DOLLARS, ON AVERAGE PER YEAR, OVER A  TEN  YEAR
PERIOD STARTING JULY FIRST, TWO THOUSAND FOURTEEN.
  (C)  THE  AUTHORITY  SHALL  BROADLY  DISSEMINATE INFORMATION ABOUT THE
CLEAN ENERGY INITIATIVE TO QUALIFIED PUBLIC PARTICIPANTS.
  (D) THE AUTHORITY SHALL PROVIDE ENERGY SERVICES  TO  QUALIFIED  PUBLIC
PARTICIPANTS EITHER DIRECTLY OR THROUGH A THIRD-PARTY PROVIDER.
  (E)  THE  AUTHORITY SHALL REQUIRE THE QUALIFIED PUBLIC PARTICIPANTS TO
REIMBURSE THE FUNDS DISPERSED PURSUANT  TO  THIS  SUBDIVISION  DURING  A
PERIOD NOT TO EXCEED TEN YEARS WITH SAVINGS IN ENERGY COSTS.
  (F) IN THE CASE OF SCHOOL DISTRICTS, ENERGY SERVICES MAY INCLUDE COSTS
NOT  OTHERWISE REIMBURSED PURSUANT TO SUBDIVISION SIX OF SECTION THIRTY-
SIX HUNDRED TWO OF THE EDUCATION LAW.
  (G) THE AUTHORITY SHALL, IN CONSULTATION WITH THE DEPARTMENT OF  ENVI-
RONMENTAL  CONSERVATION, TAKE ADVANTAGE OF ANY EMISSION REDUCTION CREDIT
PROGRAM THAT MAY BE IN PLACE TO HELP POTENTIAL QUALIFIED PUBLIC  PARTIC-

A. 1938                             7

IPANTS  MAXIMIZE  THE  ECONOMIC  AND ENVIRONMENTAL BENEFITS FROM PARTIC-
IPATION IN THE CLEAN ENERGY INITIATIVE.
  (H)  THE  AUTHORITY  SHALL ESTABLISH AND REGULARLY CONVENE AN ADVISORY
COMMITTEE COMPRISED OF THE CHAIRMAN OF THE AUTHORITY,  THE  CHAIRMAN  OF
THE  PUBLIC  SERVICE  COMMISSION  AND  THE COMMISSIONER OF ENVIRONMENTAL
CONSERVATION OR THEIR DESIGNEES, SERVING AS EX OFFICIO MEMBERS; AND  THE
CHAIRMAN  OF THE AUTHORITY SHALL APPOINT ONE REPRESENTATIVE FROM EACH OF
THE FOLLOWING CUSTOMER CLASSIFICATIONS: RESIDENTIAL, LOW-INCOME RESIDEN-
TIAL, SMALL COMMERCIAL, LARGE COMMERCIAL/INDUSTRIAL,  AGRICULTURAL,  AND
CONSUMERS  RESIDING  IN  LOAD  POCKETS;  ONE INDIVIDUAL REPRESENTING THE
ELECTRIC DISTRIBUTION COMPANIES; ONE INDIVIDUAL REPRESENTING THE  ENERGY
SERVICE COMPANIES; AND ONE INDIVIDUAL REPRESENTING EACH OF THE FOLLOWING
AREAS  OF EXPERTISE: ENVIRONMENTAL PROTECTION, CLEAN ENERGY TECHNOLOGIES
AND ENERGY EFFICIENCY. THE APPOINTED MEMBERS OF THE COMMITTEE SHALL HAVE
NO DIRECT FINANCIAL INTEREST IN THE ALLOCATION  OF  THE  MONIES  IN  THE
CLEAN  ENERGY  FUND.  THE  AUTHORITY,  IN CONSULTATION WITH THE ADVISORY
COMMITTEE, SHALL ESTABLISH EVALUATION PROTOCOLS TO JUDGE THE SUCCESS  OF
THE  CLEAN  ENERGY FUND, AND SHALL PERIODICALLY CONTRACT FOR INDEPENDENT
REVIEW OF FUND MANAGEMENT.
  S 8. Sections 1020-ii, 1020-jj and 1020-kk of the  public  authorities
law,  as  renumbered  by chapter 388 of the laws of 2011, are renumbered
sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
to read as follows:
  S 1020-II. CLEAN ENERGY INITIATIVE. THE AUTHORITY  SHALL  COMPLY  WITH
THE  PROVISIONS  OF  THIS  SECTION  FOR THE PURPOSE OF LOWERING CONSUMER
ENERGY BILLS, ENHANCING THE RELIABILITY OF THE SYSTEM, ENCOURAGING ENER-
GY EFFICIENCY, SUPPORTING THE DEVELOPMENT OF CLEAN  ENERGY  TECHNOLOGIES
SUCH  AS  WIND,  SOLAR  AND  FUEL CELLS, AND REDUCING HARMFUL IMPACTS OF
ELECTRICITY GENERATION AND CONSUMPTION ON PUBLIC  HEALTH  AND  SENSITIVE
ECOSYSTEMS.
  1. DEFINITIONS. FOR PURPOSES OF THIS SECTION:
  (A)  "CLEAN  DISTRIBUTED  ENERGY  RESOURCES" SHALL HAVE THE SAME DEFI-
NITION SET FORTH IN SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
  (B) "CLEAN ENERGY TECHNOLOGIES" SHALL HAVE  THE  SAME  DEFINITION  SET
FORTH IN SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (C)  "CUSTOMER-GENERATOR"  SHALL HAVE THE SAME DEFINITION SET FORTH IN
SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  (D) "ENERGY EFFICIENCY" SHALL HAVE THE SAME DEFINITION  SET  FORTH  IN
SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (E)  "EXIT  FEES"  SHALL HAVE THE SAME DEFINITION SET FORTH IN SECTION
SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
  (F) "NET ENERGY METER" SHALL HAVE THE SAME  DEFINITION  SET  FORTH  IN
SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  (G)  "NET ENERGY METERING" SHALL HAVE THE SAME DEFINITION SET FORTH IN
SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  (H) "SOLAR ELECTRIC GENERATING EQUIPMENT" SHALL HAVE  THE  SAME  DEFI-
NITION SET FORTH IN SECTION SIXTY-SIX-J OF THE PUBLIC SERVICE LAW.
  (I)  "WIND  ELECTRIC  GENERATING  EQUIPMENT" SHALL HAVE THE SAME DEFI-
NITION SET FORTH IN SECTION SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  2. LONG ISLAND CLEAN ENERGY FUND. (A) ON AND  AFTER  JULY  FIRST,  TWO
THOUSAND  FOURTEEN, THE AUTHORITY SHALL CONTINUE THE LEVEL OF INVESTMENT
IN ENERGY EFFICIENCY AND CLEAN TECHNOLOGIES INVESTED  IN  CALENDAR  YEAR
TWO  THOUSAND EIGHT, AND SHALL ESTABLISH A LONG ISLAND CLEAN ENERGY FUND
INTO WHICH SUCH INVESTMENT SHALL BE PLACED. THE  INVESTMENT  ESTABLISHED
PURSUANT  TO  THIS SECTION SHALL NOT BE REDUCED PRIOR TO JUNE THIRTIETH,
TWO THOUSAND TWENTY-FOUR.  AFTER SUCH DATE, THE AUTHORITY SHALL  MAKE  A

A. 1938                             8

DETERMINATION  AS  TO  WHETHER  THE  CLEAN  ENERGY  INVESTMENT SHOULD BE
INCREASED, DECREASED OR KEPT AT THE SAME LEVEL. IN MAKING THIS  DETERMI-
NATION,  THE  AUTHORITY  SHALL  FULLY CONSIDER WHETHER THE OBJECTIVES OF
LOWERING ENERGY BILLS, INCREASING ECONOMIC DEVELOPMENT AND IMPROVING THE
ENVIRONMENT  CONTINUE  TO  JUSTIFY  THE  CLEAN  ENERGY CONTRIBUTION. THE
AUTHORITY SHALL PROVIDE ALL INTERESTED PARTIES AN OPPORTUNITY TO  REVIEW
AND COMMENT ON ANY PROPOSED ADJUSTMENT PURSUANT TO THE STATE ADMINISTRA-
TIVE PROCEDURE ACT.
  (B)  THE  AUTHORITY  SHALL INVEST SUCH MONIES IN THE LONG ISLAND CLEAN
ENERGY FUND IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:
  (I) SEVENTY PERCENT OF SUCH MONIES SHALL BE INVESTED IN  ENERGY  EFFI-
CIENCY  FOR  CONSUMERS IN THE FOLLOWING CATEGORIES: RESIDENTIAL, LOW-IN-
COME RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AGRICULTURAL, EDUCATIONAL  AND
HEALTH  CARE.  THIRTY  PERCENT  OF  THE  ENERGY  EFFICIENCY  INVESTMENTS
REQUIRED PURSUANT TO THIS PARAGRAPH SHALL  BE  TARGETED  FOR  LOW-INCOME
RESIDENTIAL  AND  MULTI-FAMILY  ENERGY  EFFICIENCY PROGRAMS AND SHALL BE
DELIVERED IN CONJUNCTION WITH THE  STATEWIDE  LOW-INCOME  WEATHERIZATION
ASSISTANCE PROGRAM NETWORK OF LOCAL PROVIDERS.
  (II)  THIRTY  PERCENT OF SUCH MONIES SHALL BE INVESTED IN CLEAN ENERGY
TECHNOLOGIES. THESE FUNDS SHALL BE UTILIZED BY THE AUTHORITY, FOR  AMONG
OTHER THINGS, TO SUPPORT:
  (A)  RESEARCH, DEVELOPMENT AND DEMONSTRATION OF CLEAN ENERGY TECHNOLO-
GIES;
  (B) THE INSTALLATION, AT CUSTOMERS' PREMISES, OF AT LEAST SIXTY  MEGA-
WATTS  OF  CLEAN  ENERGY TECHNOLOGIES IN ITS SERVICE TERRITORY THROUGH A
BUYDOWN PROGRAM, INCLUDING INSTALLATIONS AT  FARMS,  AND  IN  LOW-INCOME
RESIDENTIAL  AND MULTI-FAMILY BUILDINGS. ON AND AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, THE AUTHORITY SHALL IMPLEMENT A BUYDOWN PROGRAM PURSU-
ANT TO THE TERMS OF THIS SUBPARAGRAPH. THE INCENTIVE  LEVEL  OFFERED  BY
THIS  PROGRAM,  IN  COMBINATION  WITH  ANY OTHER FEDERAL, STATE OR LOCAL
INCENTIVE THAT THE CUSTOMER RECEIVES, SHALL  BE  SIXTY  PERCENT  OF  THE
INSTALLED  COST  OF EACH TECHNOLOGY FOR THE FIRST EIGHT MEGAWATTS PHASE,
AND, IN EACH OF THE FOLLOWING FOUR PHASES OF TEN, TWELVE,  FOURTEEN  AND
SIXTEEN  MEGAWATTS,  THE  TOTAL INCENTIVE SHALL BE FIFTY, FORTY, THIRTY,
AND TWENTY PERCENT OF SUCH INSTALLED COST,  PROVIDED  THAT  AT  NO  TIME
SHALL THE TOTAL INCENTIVE FOR ANY PROJECT EXCEED THREE DOLLARS PER WATT;
AND
  (C) THE DEVELOPMENT OF CLEAN ENERGY TECHNOLOGIES IN ITS SERVICE TERRI-
TORY  THROUGH  A  COMPETITIVE  AUCTION  OR  SOLICITATION PROGRAM FOR THE
PURPOSE OF SUPPLYING ELECTRICITY TO CONSUMERS THROUGH  THE  TRANSMISSION
AND DISTRIBUTION SYSTEM. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS
SECTION,  THE AUTHORITY SHALL ESTABLISH A COMPETITIVE PROGRAM TO PROVIDE
PER-KILOWATT-HOUR INCENTIVES TO BIDDERS THAT PROVIDE  SUBSTANTIAL  PROOF
OF  INTENT  AND  ABILITY  TO  BUILD CLEAN ENERGY TECHNOLOGY PROJECTS AND
REQUIRE THE LOWEST AMOUNT OF INCENTIVE OVER  A  PERIOD  OF  FIVE  YEARS.
FOLLOWING THE ESTABLISHMENT OF THIS PROGRAM, THE AUTHORITY SHALL ISSUE A
REQUEST  FOR  LETTERS OF INTENT TO BID EVERY SIX MONTHS UNTIL ALL MONIES
ALLOCATED TO CLEAN ENERGY TECHNOLOGIES HAVE BEEN INVESTED. IN  DETERMIN-
ING THE AMOUNT OF INCENTIVE OR GRANT AWARDED UNDER THE AUCTION OR SOLIC-
ITATION  PROCESS IN THIS CLAUSE, THE AUTHORITY SHALL TAKE INTO CONSIDER-
ATION ANY REVENUES LIKELY TO BE RECEIVED  BY  THE  RECIPIENT  UNDER  THE
CLEAN  ENERGY  REQUIREMENT  ESTABLISHED  BY  SUBDIVISION  FOUR  OF  THIS
SECTION.
  (III) ALL MONIES COLLECTED FROM THE CLEAN ENERGY CONTRIBUTION SHALL BE
FULLY INVESTED. HOWEVER, THE PERCENT ALLOCATIONS  PURSUANT  TO  SUBPARA-

A. 1938                             9

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

A. 1938                            10

CLEAN ENERGY TECHNOLOGIES. THE AUTHORITY SHALL INCREASE THE CLEAN ENERGY
REQUIREMENT BY ONE-HALF OF ONE PERCENT ANNUALLY ON JULY FIRST EACH  YEAR
THEREAFTER,  UNTIL THE AMOUNT OF ENERGY REQUIRED FROM CLEAN ENERGY TECH-
NOLOGIES  REACHES  SIX  PERCENT.  ONCE  THE AMOUNT OF ENERGY SUPPLIED TO
CUSTOMERS FROM  CLEAN  ENERGY  TECHNOLOGIES  REACHES  SIX  PERCENT,  THE
REQUIREMENT SHALL BE INCREASED BY ONE PERCENT EACH YEAR THEREAFTER UNTIL
THE AMOUNT OF ENERGY REQUIRED FROM CLEAN ENERGY TECHNOLOGIES REACHES TEN
PERCENT  OR  SUCH LATER DATE AS THE AUTHORITY SHALL DETERMINE; PROVIDED,
HOWEVER, THAT THE AUTHORITY SHALL NOT DECREASE THE  REQUIRED  PERCENTAGE
AT ANY TIME.
  (B) NOT LATER THAN JANUARY FIRST, TWO THOUSAND FOURTEEN, THE AUTHORITY
SHALL  ESTABLISH AN ENVIRONMENTAL DISCLOSURE PROGRAM CONSISTENT WITH THE
PUBLIC SERVICE COMMISSION'S ENVIRONMENTAL DISCLOSURE PROGRAM. IN  IMPLE-
MENTING  THE  CLEAN  ENERGY REQUIREMENT, THE AUTHORITY SHALL ENSURE THAT
INFORMATION PROVIDED TO CUSTOMERS CONCERNING CLEAN  ENERGY  TECHNOLOGIES
IS  CLEAR AND UNDERSTANDABLE, AND SHALL CONSIDER WHETHER IT IS APPROPRI-
ATE TO INDICATE ON ALL DISCLOSURE LABELS THE MINIMUM PERCENTAGE OF ENER-
GY REQUIRED FROM CLEAN ENERGY TECHNOLOGIES PURSUANT TO THIS SECTION.
  (C) THE AUTHORITY MAY SATISFY THE REQUIREMENTS OF THIS SUBDIVISION  BY
ENTERING INTO CONVERSION TRANSACTIONS ESTABLISHED PURSUANT TO THE PUBLIC
SERVICE  COMMISSION'S  ENVIRONMENTAL  DISCLOSURE  PROGRAM  OR SUCH OTHER
TRADING PROGRAM THAT THE AUTHORITY MAY ESTABLISH OR  CHOOSE  TO  PARTIC-
IPATE  IN.  THE AUTHORITY SHALL BE ABLE TO BANK CREDITS FOR CLEAN ENERGY
SUPPLIED IN EXCESS OF REQUIREMENTS FOR A PERIOD OF  TWO  YEARS  AND  MAY
DEMONSTRATE  COMPLIANCE  WITHIN  THREE MONTHS OF THE END OF THE CALENDAR
YEAR IN ORDER TO ALLOW FOR COMPLIANCE VIA CONVERSION TRANSACTIONS  OR  A
TRADING PROGRAM.
  5. ADVISORY PANEL. THE AUTHORITY SHALL ESTABLISH AND REGULARLY CONVENE
AN ADVISORY COMMITTEE COMPRISED OF THE CHAIRMAN OF THE AUTHORITY SERVING
AS  AN  EX  OFFICIO MEMBER; SEVEN MEMBERS APPOINTED BY THE AUTHORITY ONE
MEMBER TO BE APPOINTED TO BE REPRESENTATIVE OF  EACH  OF  THE  FOLLOWING
CUSTOMER  CLASSIFICATIONS:  RESIDENTIAL,  LOW-INCOME  RESIDENTIAL, SMALL
COMMERCIAL, LARGE  COMMERCIAL/INDUSTRIAL,  AGRICULTURAL,  AND  CONSUMERS
RESIDING IN LOAD POCKETS; AND FOUR MEMBERS APPOINTED BY THE AUTHORITY TO
REPRESENT  EACH  OF  THE  FOLLOWING  AREAS  OF  EXPERTISE: ENVIRONMENTAL
PROTECTION,  CLEAN  ENERGY  TECHNOLOGIES,  AND  ENERGY  EFFICIENCY.  THE
APPOINTED MEMBERS OF THE COMMITTEE SHALL HAVE NO DIRECT FINANCIAL INTER-
EST  IN THE ALLOCATION OF THE MONIES FROM THE CLEAN ENERGY CONTRIBUTION.
THE AUTHORITY, IN CONSULTATION WITH THE ADVISORY COMMITTEE, SHALL ESTAB-
LISH EVALUATION PROTOCOLS TO JUDGE THE SUCCESS OF  THE  INITIATIVE,  AND
SHALL PERIODICALLY CONTRACT FOR INDEPENDENT REVIEW OF FUND MANAGEMENT.
  6.  REPORTING. ON OR BEFORE JULY FIRST, TWO THOUSAND FIFTEEN AND ANNU-
ALLY THEREAFTER, THE AUTHORITY SHALL ISSUE A REPORT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY  IDEN-
TIFYING THE BUDGET BALANCE, PROJECTED REVENUES AND EXPENDITURES, PROGRAM
ACHIEVEMENTS  AND  ALL OTHER RELEVANT INFORMATION RELATING TO THE IMPLE-
MENTATION OF THIS SECTION.
  S 9. Section 1854 of the public authorities law is amended by adding a
new subdivision 20 to read as follows:
  20. TO ADMINISTER  THE  CLEAN  ENERGY  FUND  ESTABLISHED  PURSUANT  TO
SECTION EIGHTEEN HUNDRED FIFTY-FOUR-E OF THIS TITLE.
  S  10.  The  public authorities law is amended by adding a new section
1854-e to read as follows:
  S 1854-E. CLEAN ENERGY FUND. 1. FOR PURPOSES OF THIS SECTION:
  (A) "CLEAN ENERGY TECHNOLOGIES" SHALL HAVE  THE  SAME  DEFINITION  SET
FORTH IN SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.

A. 1938                            11

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

A. 1938                            12

NIES AND DISTRIBUTED RESOURCE PROVIDERS TO ADDRESS  THE  NEEDS  OF  LOAD
POCKETS  THAT HAVE SUSTAINED OUT-OF-MERIT ORDER DISPATCH FOR RELIABILITY
REASONS, PROVIDED THAT THE ELECTRIC DISTRIBUTION COMPANY FUNDS AT  LEAST
THIRTY PERCENT OF THE COST OF SUCH TARGETED PROGRAMS.
  (D)  ALL  MONIES  IN  THE FUND SHALL BE INVESTED. HOWEVER, THE PERCENT
ALLOCATIONS IN PARAGRAPHS (A), (B) AND (C) OF THIS  SUBDIVISION  MAY  BE
ACHIEVED ON AN AVERAGE BASIS OVER A ROLLING PERIOD OF UP TO FIVE YEARS.
  3.  THE  AUTHORITY  SHALL  ESTABLISH AND REGULARLY CONVENE AN ADVISORY
COMMITTEE COMPRISED OF THE CHAIRMAN OF THE AUTHORITY,  THE  CHAIRMAN  OF
THE  PUBLIC  SERVICE  COMMISSION  AND  THE COMMISSIONER OF ENVIRONMENTAL
CONSERVATION OR THEIR DESIGNEES, SERVING AS EX OFFICIO MEMBERS; AND  THE
CHAIRMAN  OF THE AUTHORITY SHALL APPOINT ONE REPRESENTATIVE FROM EACH OF
THE FOLLOWING CUSTOMER CLASSIFICATIONS: RESIDENTIAL, LOW-INCOME RESIDEN-
TIAL, SMALL COMMERCIAL, LARGE COMMERCIAL/INDUSTRIAL,  AGRICULTURAL,  AND
CONSUMERS  RESIDING  IN  LOAD  POCKETS;  ONE INDIVIDUAL REPRESENTING THE
ELECTRIC DISTRIBUTION COMPANIES; ONE INDIVIDUAL REPRESENTING THE  ENERGY
SERVICE COMPANIES; AND ONE INDIVIDUAL REPRESENTING EACH OF THE FOLLOWING
AREAS  OF EXPERTISE: ENVIRONMENTAL PROTECTION, CLEAN ENERGY TECHNOLOGIES
AND ENERGY EFFICIENCY. THE APPOINTED MEMBERS OF THE COMMITTEE SHALL HAVE
NO DIRECT FINANCIAL INTEREST IN THE ALLOCATION  OF  THE  MONIES  IN  THE
CLEAN  ENERGY  FUND.  THE  AUTHORITY,  IN CONSULTATION WITH THE ADVISORY
COMMITTEE, SHALL ESTABLISH EVALUATION PROTOCOLS TO JUDGE THE SUCCESS  OF
THE  CLEAN  ENERGY FUND, AND SHALL PERIODICALLY CONTRACT FOR INDEPENDENT
REVIEW OF FUND MANAGEMENT.
  4. ON OR BEFORE JULY FIRST, TWO THOUSAND FIFTEEN AND  ANNUALLY  THERE-
AFTER,  THE AUTHORITY SHALL ISSUE A REPORT TO THE PUBLIC SERVICE COMMIS-
SION, THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAK-
ER OF THE ASSEMBLY IDENTIFYING THE CLEAN ENERGY FUND BALANCE,  PROJECTED
REVENUES  AND EXPENDITURES, PROGRAM ACHIEVEMENTS, AND ALL OTHER RELEVANT
INFORMATION.
  S 11. Severability. If any clause,  sentence,  paragraph,  section  or
part  of  this act shall be adjudged by any court of competent jurisdic-
tion to be invalid, such judgment shall not affect, impair or invalidate
the remainder thereof, but shall be confined in  its  operation  to  the
clause,  sentence,  paragraph, section or part thereof directly involved
in the controversy in which such judgment shall have been rendered.
  S 12. This act shall take effect immediately, provided  that  sections
two  and  three of this act shall apply to taxable years beginning on or
after January 1, 2015.