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

                                   975

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 8, 2015
                               ___________

Introduced by M. of A. HEVESI -- read once and referred to the Committee
  on Energy

AN  ACT  to amend the public service law and the public authorities law,
  in relation to the creation of renewable  energy  credits  for  retail
  electric  providers,  the New York power authority and the Long Island
  power authority

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

  Section  1.  This act shall be known and may be cited as the "New York
renewable energy development and jobs act of 2015".
  S 2. The public service law is amended by adding a new section 66-n to
read as follows:
  S 66-N. PROCUREMENT OF RENEWABLE ENERGY CREDITS. 1. AS  USED  IN  THIS
SECTION:
  (A)  "ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A PAYMENT OF A DEFINED
DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY THE COMMISSION,  THAT
A  RETAIL  ELECTRIC  SUPPLIER SHALL SUBMIT TO THE COMMISSION IN ORDER TO
COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED  IN  SUBDIVISION  TWO  OF
THIS SECTION.
  (B)  "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE
POWER GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN  THOU-
SAND  KILOWATTS  USED  TO PROVIDE AN ALTERNATIVE TO OR AN ENHANCEMENT OF
THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES.
  (C) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED  RENEWA-
BLE  ENERGY  GENERATION  PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM
THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE  OR  UTILITY  DISTRIBUTION
COMPANY METER.
  (D)  "ELECTRIC  DISTRIBUTION  COMPANY" MEANS AN INVESTOR-OWNED UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE.
  (E) "NEW ENERGY TECHNOLOGIES"  MEANS  ALL  METHODS  USED  TO  PRODUCE,
DISTRIBUTE,  CONSERVE  AND STORE ENERGY BY METHODS NOT IN COMMON COMMER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04625-02-5
              

A. 975                              2

CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES  INCLUDING  BUT  NOT
LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE.
  (F)  "POWER  PURCHASE  AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF  RENEWABLE  ENERGY  CREDITS  FROM  AN
OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM.
  (G) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING RENEWABLE ENER-
GY SYSTEM THAT IS ALSO A:
  (I) RESIDENT OF NEW YORK STATE;
  (II)  LIMITED  LIABILITY  COMPANY  ORGANIZED  UNDER THE NEW YORK STATE
LIMITED LIABILITY COMPANY LAW AND MADE UP OF A MAJORITY OF  MEMBERS  WHO
ARE NEW YORK STATE RESIDENTS; OR
  (III)  NEW  YORK  NOT-FOR-PROFIT  ORGANIZATION ORGANIZED UNDER THE NEW
YORK STATE NOT-FOR-PROFIT CORPORATION LAW.
  (H) "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC  ENERGY
MEASURE  IN  KILOWATT-HOURS  PRODUCED  FROM A QUALIFIED RENEWABLE ENERGY
SYSTEM.
  (I) "QUALIFIED RENEWABLE  ENERGY  SYSTEM"  SHALL  MEAN  A  DISTRIBUTED
RENEWABLE  ENERGY  RESOURCE  SYSTEM  OR  TECHNOLOGY AS DETERMINED BY THE
COMMISSION CONSISTENT WITH THE DEFINITION PROVIDED IN PARAGRAPH  (B)  OF
THIS  SUBDIVISION  THAT  MAY  RESULT IN THE COST EFFECTIVE PRODUCTION OF
ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN  CONSTRUCTED  AND  IS
OWNED  BY  A  QUALIFYING  OWNER.  FOR THE PURPOSES OF THIS SECTION, THEY
SHALL INCLUDE:
  (I) WIND;
  (II) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS;
  (III) SOLAR THERMAL;
  (IV) GEOTHERMAL;
  (V) FUEL CELL TECHNOLOGY;
  (VI) HYDRO-KINETIC,  INCLUDING  APPROVED  RIVER  OR  TIDAL  GENERATION
SYSTEMS;
  (VII) HYDROELECTRIC;
  (VIII) BIOMASS;
  (IX) ANAEROBIC DIGESTION; AND
  (X) LANDFILL GAS TO ENERGY SYSTEMS.
  (J)  "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI-
BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF  QUALIFIED  RENEWABLE  ENERGY
GENERATION.
  (K)  THE TERM "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING
AS SET FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW.
  (L) "RETAIL ELECTRIC SUPPLIER" MEANS  AN  ENTITY  AUTHORIZED  TO  SELL
ELECTRICITY  AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM-
ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS  A
PROVIDER  OF  LAST  RESORT  OR AN ENERGY SERVICE COMPANY APPROVED BY THE
COMMISSION FOR SUCH PURPOSE.
  (M) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE  ENERGY  GENER-
ATION"  MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY
A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR  LESS  THAN  ONE
HUNDRED KILOWATTS IN SIZE.
  2. (A) EACH RETAIL ELECTRIC SUPPLIER SHALL ANNUALLY PROCURE RECS BY AN
ADDITIONAL  ANNUAL  PERCENTAGE  POINT  OF SUCH SUPPLIER'S TOTAL ELECTRIC
SALES IN EACH COMPLIANCE YEAR:

COMPLIANCE               ANNUAL
  YEAR                REQUIREMENT
  2017                   0.05%
  2018                   0.13%

A. 975                              3

  2019                   0.15%
  2020                   0.17%
  2021                   0.20%
  2022                   0.23%
  2023                   0.27%
  2024                   0.32%
  2025                   0.38%
  2026                   0.44%
  2027                   0.52%
  2028                   0.61%
  2029                   0.72%
  2030                   0.85%

  (B)  IF BY THE YEAR TWO THOUSAND THIRTY-TWO NEW YORK STATE HAS NOT MET
ITS GOAL OF THIRTY-FIVE PERCENT ELECTRIC ENERGY  FROM  RENEWABLE  ENERGY
SOURCES,  THE  PROGRAM ESTABLISHED IN THIS SECTION SHALL BE EXTENDED AND
SHALL GROW AT A RATE OF  0.85  PERCENTAGE  POINTS  UNTIL  THIS  GOAL  IS
ACHIEVED.
  (C)  AT  LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE
TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF
RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED  DISTRIBUTED  RENEWABLE
ENERGY GENERATION.  IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT-
ER  THE  COMMISSION SHALL UNDERTAKE A REVIEW CONCERNING THE RETAIL ELEC-
TRIC SUPPLIER'S ABILITY TO MEET  TWENTY-FIVE  PERCENT  OF  THEIR  ANNUAL
OBLIGATIONS  THROUGH  SMALL  RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE
ENERGY GENERATION. IF THE COMMISSION CONCLUDES THAT  A  RETAIL  ELECTRIC
SUPPLIER  CANNOT  REASONABLY  MEET  THIS  OBLIGATION, THE COMMISSION MAY
ALLOW A RETAIL ELECTRIC SUPPLIER TO APPLY FOR A WAIVER TO PROCURE  POWER
PURCHASE AGREEMENTS FROM OTHER SOURCES.
  (D)  OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED
RENEWABLE ENERGY GENERATION SHALL  CONTINUE  UNTIL  ALL  EXISTING  POWER
PURCHASE AGREEMENTS HAVE EXPIRED.
  (E)  RETAIL  ELECTRIC SUPPLIERS MAY MEET THEIR OBLIGATIONS ESTABLISHED
BY THE COMMISSION PURSUANT TO THIS SUBDIVISION THROUGH  THE  PROCUREMENT
OF  RECS TOGETHER WITH OR SEPARATE FROM THE ASSOCIATED QUALIFIED RENEWA-
BLE ENERGY GENERATION.
  (F) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL
ESTABLISH AN AUTOMATED REC TRACKING SYSTEM  WITHIN  ONE  HUNDRED  EIGHTY
DAYS  OF THE EFFECTIVE DATE OF THIS SECTION. EACH QUALIFYING OWNER SHALL
APPLY TO THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY TO
CERTIFY THE AMOUNT OF QUALIFIED RENEWABLE ENERGY GENERATION THEY WILL BE
ABLE TO ACHIEVE AND TO RECEIVE A RENEWABLE  ENERGY  CREDIT  CERTIFICATE.
THE  NEW  YORK  STATE  ENERGY  RESEARCH  AND DEVELOPMENT AUTHORITY SHALL
CONSULT WITH THE NEW YORK INDEPENDENT SYSTEMS  OPERATOR  TO  VERIFY  THE
AMOUNT  OF  QUALIFIED  RENEWABLE  ENERGY  GENERATION PRODUCED. ONCE THIS
AMOUNT IS VERIFIED, THE NEW YORK STATE ENERGY RESEARCH  AND  DEVELOPMENT
AUTHORITY  SHALL  ISSUE  THE  QUALIFYING  OWNER RECS PROPORTIONAL TO THE
AMOUNT OF QUALIFIED  RENEWABLE  ENERGY  GENERATION  PRODUCED.  EACH  REC
CERTIFICATE  SHALL HAVE AN ELECTRONIC IDENTIFICATION NUMBER TO ASSIST IN
THE TRACKING. EACH ISSUANCE, SALE, AND TRADE OF A REC SHALL BE  RECORDED
IN THE TRACKING SYSTEM.
  (G)  RECS  SHALL BE ELIGIBLE FOR USE IN MEETING THE OBLIGATIONS ESTAB-
LISHED IN THIS SUBDIVISION IN THE COMPLIANCE  YEAR  IN  WHICH  THEY  ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  3.  (A)  IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR
OBLIGATIONS ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION,  THEY  SHALL

A. 975                              4

BE  PERMITTED  TO  DISCHARGE  SUCH  OBLIGATIONS BY MAKING AN ALTERNATIVE
COMPLIANCE PAYMENT IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED,
HOWEVER, THAT THE COMMISSION SHALL SET SUCH  PAYMENT  AT  A  LEVEL  THAT
SHALL STIMULATE THE DEVELOPMENT OF NEW QUALIFIED RENEWABLE ENERGY GENER-
ATION  NECESSARY  TO  ACHIEVE THE OBLIGATIONS ESTABLISHED IN SUBDIVISION
TWO OF THIS SECTION.
  (B) NO LATER THAN DECEMBER FIRST, TWO THOUSAND EIGHTEEN,  THE  COMMIS-
SION  SHALL ESTABLISH AN ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE THROUGH
THE YEAR TWO THOUSAND NINETEEN. THE  COMMISSION  SHALL  SET  ALTERNATIVE
COMPLIANCE  PAYMENT  LEVELS  NO  LATER THAN JANUARY THIRTY-FIRST OF EACH
YEAR THEREAFTER TO SERVE AS THE PAYMENT LEVEL FOR THE YEAR IN  WHICH  IT
IS  SET.    THE COMMISSION SHALL REVIEW SUCH SCHEDULE TO ENSURE THAT THE
PAYMENTS ARE SET AT A LEVEL TO STIMULATE THE DEVELOPMENT OF  NEW  QUALI-
FIED  RENEWABLE  ENERGY  GENERATION  IN ACCORDANCE WITH PARAGRAPH (A) OF
THIS SUBDIVISION.  ONCE SUCH SCHEDULE IS ESTABLISHED, THE COMMISSION MAY
ADOPT, AFTER APPROPRIATE NOTICE AND OPPORTUNITY FOR PUBLIC  COMMENT,  AN
INCREASE  IN  ALTERNATIVE COMPLIANCE PAYMENTS, PROVIDED THAT THE COMMIS-
SION SHALL NOT REDUCE PREVIOUSLY ESTABLISHED  LEVELS  OF  PAYMENTS,  NOR
SHALL  THE  COMMISSION  PROVIDE RELIEF FROM THE OBLIGATION OF PAYMENT OF
THE ALTERNATIVE COMPLIANCE PAYMENTS BY THE RETAIL ELECTRIC SUPPLIERS  IN
ANY FORM.
  (C)  THE  COMMISSION  SHALL  MAKE  AVAILABLE  ALL  MONIES FROM AMOUNTS
COLLECTED THROUGH SUCH ALTERNATIVE  COMPLIANCE  PAYMENTS  FOR  RENEWABLE
PROGRAMS  AND  INITIATIVES TO BE ADMINISTERED AND FUNDED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  4. (A) NO LATER  THAN  DECEMBER  FIRST,  TWO  THOUSAND  EIGHTEEN,  THE
COMMISSION  SHALL  ESTABLISH A TEMPLATE FOR POWER PURCHASE AGREEMENTS TO
BE USED BY RETAIL ELECTRIC SUPPLIERS FOR THEIR PROCUREMENT OF  RECS  FOR
THE  PURPOSE  OF FULFILLING THEIR OBLIGATIONS ESTABLISHED IN SUBDIVISION
TWO OF THIS SECTION.
  (B) EACH RETAIL ELECTRIC SUPPLIER SHALL, NOT LATER THAN JANUARY FIRST,
TWO THOUSAND NINETEEN, SUBMIT  FOR  COMMISSION  REVIEW  AND  APPROVAL  A
SOLICITATION  PLAN  THAT  SHALL  INCLUDE A TIMETABLE AND METHODOLOGY FOR
SOLICITING PROPOSALS FOR RECS ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY
GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE  ENERGY  GENER-
ATION,  FOR  THE  PURPOSE  OF  FULFILLING ITS OBLIGATIONS ESTABLISHED IN
SUBDIVISION TWO OF THIS SECTION.  THE  ELECTRIC  DISTRIBUTION  COMPANY'S
SOLICITATION  PLAN  SHALL BE DESIGNED TO FOSTER A DIVERSITY OF RENEWABLE
PROJECT SIZES AND PARTICIPATION  AMONG  ALL  ELIGIBLE  CUSTOMER  CLASSES
SUBJECT TO COST-EFFECTIVENESS CONSIDERATIONS.
  (C) EACH RETAIL ELECTRIC SUPPLIER SHALL EXECUTE ITS APPROVED SOLICITA-
TION PLAN NO LATER THAN THIRTY DAYS AFTER COMMISSION APPROVAL AND SUBMIT
FOR  COMMISSION  REVIEW  AND  APPROVAL  ITS  PREFERRED  PROCUREMENT PLAN
COMPRISED OF ANY PROPOSED POWER PURCHASE AGREEMENTS FOR RECS  ASSOCIATED
WITH  QUALIFIED  RENEWABLE  ENERGY  GENERATION  OTHER  THAN SMALL RETAIL
DISTRIBUTED RENEWABLE ENERGY GENERATION.  THE  COMMISSION  MAY  APPROVE,
REJECT OR MODIFY AN APPLICATION FOR APPROVAL OF SUCH PLAN, PROVIDED THAT
THE COMMISSION SHALL APPROVE SUCH PLAN IF THE COMMISSION FINDS THAT: (I)
THE  SOLICITATION  AND EVALUATION CONDUCTED BY THE ELECTRIC DISTRIBUTION
COMPANY WAS THE RESULT OF A  FAIR,  OPEN,  COMPETITIVE  AND  TRANSPARENT
PROCESS;  (II)  APPROVAL  OF  THE  PROCUREMENT  PLAN WOULD RESULT IN THE
ACHIEVEMENT OF THE DISTRIBUTION COMPANY'S OBLIGATIONS PERTAINING TO  THE
PROCUREMENT  OF  RECS  ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENER-
ATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION AT
THE LOWEST REASONABLE COST; AND (III) SUCH  PROCUREMENT  PLAN  SATISFIES
OTHER  CRITERIA AS MAY BE ESTABLISHED IN THE APPROVED SOLICITATION PLAN.

A. 975                              5

IF THE COMMISSION DOES NOT APPROVE, REJECT OR  MODIFY  THE  DISTRIBUTION
COMPANY'S  APPLICATION  WITHIN SIXTY DAYS, THE PROCUREMENT PLAN SHALL BE
DEEMED APPROVED.
  (D)  NO  LATER  THAN JANUARY FIRST, TWO THOUSAND NINETEEN, EACH RETAIL
ELECTRIC SUPPLIER SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL
A PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE  PROCURE-
MENT  OF  RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY
GENERATION ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  5. EACH RETAIL ELECTRIC SUPPLIER SHALL  BE  ENTITLED  TO  RECOVER  THE
PRUDENTLY  INCURRED  COSTS OF COMPLYING WITH ITS OBLIGATIONS ESTABLISHED
IN SUBDIVISION TWO OF THIS SECTION, AS DETERMINED BY THE COMMISSION.
  6. NO LATER THAN JANUARY FIRST, TWO THOUSAND NINETEEN, THE  COMMISSION
SHALL ESTABLISH AN INCENTIVE PROGRAM FOR RETAIL ELECTRIC SUPPLIERS BASED
ON  SUCH  COMPANIES'  ACHIEVEMENT  OF  THEIR  OBLIGATIONS, AND EXEMPLARY
PERFORMANCE BEYOND SUCH OBLIGATIONS, ESTABLISHED IN SUBDIVISION  TWO  OF
THIS  SECTION  (A)  IN  A  COST-EFFECTIVE MANNER THAT ACHIEVES THE OBLI-
GATIONS AT LEAST COST AND AVOIDS LONG-TERM COSTS TO THE TRANSMISSION AND
DISTRIBUTION SYSTEM; (B) PROVIDES ENHANCED ELECTRICITY RELIABILITY WITH-
IN COMPANIES' SERVICE  TERRITORIES;  AND  (C)  MINIMIZES  PEAK  LOAD  IN
CONSTRAINED AREAS.
  7.  NO LATER THAN JANUARY FIRST, TWO THOUSAND NINETEEN, THE COMMISSION
SHALL ESTABLISH THE TERMS AND CONDITIONS THAT  SHALL  BE  APPLICABLE  TO
POWER  PURCHASE AGREEMENTS ENTERED INTO BY RETAIL ELECTRIC SUPPLIERS FOR
THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED RENEWA-
BLE ENERGY GENERATION, FOR THE  PURPOSE  OF  ACHIEVING  SUCH  COMPANIES'
OBLIGATIONS  PERTAINING  TO  RECS ASSOCIATED WITH SUCH GENERATION ESTAB-
LISHED IN SUBDIVISION TWO OF THIS SECTION.  SUCH  TERMS  AND  CONDITIONS
SHALL  INCLUDE  A  TARIFF,  AS  ESTABLISHED  BY  THE COMMISSION, FOR THE
PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL  DISTRIBUTED  RENEWABLE
ENERGY  GENERATION,  TO  BE  PAID  BY ELECTRIC DISTRIBUTION COMPANIES TO
APPLICABLE  OWNERS  OF  QUALIFIED  RENEWABLE  ENERGY  TECHNOLOGIES.  THE
COMMISSION  SHALL  REVIEW  SUCH  TARIFFS  EVERY  TWO YEARS AND ADJUST AS
NECESSARY TO ACHIEVE THE OBLIGATIONS PERTAINING TO RECS ASSOCIATED  WITH
SMALL  RETAIL  DISTRIBUTED  RENEWABLE  ENERGY  GENERATION ESTABLISHED IN
SUBDIVISION TWO OF THIS SECTION; PROVIDED, HOWEVER,  THAT  SUCH  ADJUST-
MENTS SHALL NOT GO BELOW THE ORIGINALLY SET TARIFF RATE.
  8.  RETAIL  CONTRACTS  FOR THE SALE OF ELECTRICITY ENTERED INTO BEFORE
JANUARY FIRST, TWO THOUSAND NINETEEN 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  SHALL  BE  PERMITTED  TO  RESELL  OR
OTHERWISE  DISPOSE OF RECS AND ANY ASSOCIATED QUALIFIED RENEWABLE ENERGY
GENERATION PROCURED BY SUCH COMPANY THAT IS IN EXCESS OF ITS OBLIGATIONS
ESTABLISHED IN SUBDIVISION TWO OF THIS  SECTION,  PROVIDED  THE  COMPANY
SHALL  NET  THE COST OF PAYMENTS MADE FOR RECS AND ANY ASSOCIATED QUALI-
FIED RENEWABLE ENERGY GENERATION UNDER POWER PURCHASE AGREEMENTS AGAINST
THE PROCEEDS OF THE SALE OF RECS AND ANY ASSOCIATED QUALIFIED  RENEWABLE
ENERGY  GENERATION,  AND  THE DIFFERENCE SHALL BE CREDITED OR CHARGED TO
THE ELECTRIC DISTRIBUTION  COMPANY'S  CUSTOMERS  THROUGH  A  RECONCILING
COMPONENT OF ELECTRIC RATES, AS DETERMINED BY THE COMMISSION.
  10.  (A)  NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE, AND NO
LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH  THE  YEAR  TWO
THOUSAND THIRTY-TWO, THE COMMISSION SHALL REPORT TO THE GOVERNOR, SPEAK-
ER  OF  THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPORARY
PRESIDENT OF THE SENATE, THE MAJORITY LEADER OF THE SENATE, THE MINORITY
LEADER OF THE SENATE, CHAIRS OF THE SENATE AND ASSEMBLY  ENERGY  COMMIT-

A. 975                              6

TEES, AND THE RANKING MINORITY MEMBERS OF THE SENATE AND ASSEMBLY ENERGY
COMMITTEES, THE CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEM-
BLY,  AND  SHALL POST ON ITS WEBSITE, A REPORT REGARDING THE PROGRESS OF
EACH  RETAIL ELECTRIC SUPPLIER IN MEETING ITS OBLIGATIONS ESTABLISHED IN
SUBDIVISION TWO OF THIS SECTION.
  (B) EACH RETAIL ELECTRIC SUPPLIER SHALL PROVIDE TO THE COMMISSION  THE
INFORMATION  NECESSARY  TO FULFILL THE COMMISSION'S OBLIGATIONS PURSUANT
TO THIS SUBDIVISION, IN ACCORDANCE WITH AN ANNUAL  REPORTING  OBLIGATION
AND PROCESS TO BE ESTABLISHED BY THE COMMISSION.
  (C)  EACH  REPORT THAT SHALL BE SUBMITTED PURSUANT TO THIS SUBDIVISION
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH RETAIL ELECTRIC  SUPPLIER
FOR  THE  PREVIOUS CALENDAR YEAR AND FOR THE TOTAL OF ALL CALENDAR YEARS
TO DATE: (I) THE ACTUAL NUMBER OF MEGAWATT-HOURS OF QUALIFIED  RENEWABLE
ENERGY  GENERATION  SOLD AT RETAIL TO NEW YORK END-USE CUSTOMERS AND THE
TOTAL NUMBER OF MEGAWATT-HOURS  SOLD  AT  RETAIL  TO  NEW  YORK  END-USE
CUSTOMERS  AND  THE RATE IMPACT TO END-USE CUSTOMERS; (II) THE NUMBER OF
RECS ASSOCIATED WITH QUALIFIED RENEWABLE  ENERGY  GENERATION  THAT  WERE
RETIRED  FOR  THE  PURPOSES OF MEETING THE SUPPLIER'S OBLIGATIONS ESTAB-
LISHED IN SUBDIVISION TWO OF THIS SECTION; AND (III) THE AMOUNT, IF ANY,
OF ALTERNATIVE COMPLIANCE PAYMENTS MADE.
  (D) SUCH REPORT SHALL ALSO INCLUDE, FOR  EACH  SMALL  RETAIL  ELECTRIC
SUPPLIER  THAT  IS  AN  ELECTRIC DISTRIBUTION COMPANY: (I) THE NUMBER OF
RECS EACH ASSOCIATED WITH  SMALL  RETAIL  DISTRIBUTED  RENEWABLE  ENERGY
GENERATION  AND  DISTRIBUTED  RENEWABLE  ENERGY  GENERATION  PRODUCED BY
EQUIPMENT OF ANY SIZE THAT WERE PROCURED; (II) THE NUMBER OF  SUCH  RECS
PROCURED THROUGH POWER PURCHASE AGREEMENTS AND THE ELECTRIC DISTRIBUTION
COMPANY'S  OWNERSHIP  OF  QUALIFIED RENEWABLE ENERGY GENERATION, RESPEC-
TIVELY; AND (III) THE AMOUNT PAID TO QUALIFIED RENEWABLE ENERGY  GENERA-
TORS  THROUGH  TARIFFS ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF THIS
SECTION FOR RECS ASSOCIATED  WITH  SMALL  RETAIL  DISTRIBUTED  RENEWABLE
ENERGY GENERATION.
  S 3. Section 1005 of the public authorities law is amended by adding a
new subdivision 25 to read as follows:
  25.  A.  FOR  PURPOSES  OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (I) "ALTERNATIVE COMPLIANCE PAYMENT" MEANS  A  PAYMENT  OF  A  DEFINED
DOLLAR  AMOUNT  PER  MEGAWATT-HOUR, AS ESTABLISHED BY THE PUBLIC SERVICE
COMMISSION, THAT THE  AUTHORITY  SHALL  SUBMIT  TO  THE  PUBLIC  SERVICE
COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN
PARAGRAPH B OF THIS SUBDIVISION.
  (II) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS SMALL-SCALE
POWER  GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU-
SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR  AN  ENHANCEMENT  OF
THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES.
  (III) "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEW-
ABLE  ENERGY  GENERATION PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM
THAT IS INTERCONNECTED TO THE CUSTOMER'S SIDE  OR  UTILITY  DISTRIBUTION
COMPANY METER.
  (IV)  "ELECTRIC  DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE.
  (V) "NEW ENERGY TECHNOLOGIES"  MEANS  ALL  METHODS  USED  TO  PRODUCE,
DISTRIBUTE,  CONSERVE  AND STORE ENERGY BY METHODS NOT IN COMMON COMMER-
CIAL USE, WITH EMPHASIS ON RENEWABLE ENERGY SOURCES  INCLUDING  BUT  NOT
LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE.

A. 975                              7

  (VI)  "POWER  PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR A MINIMUM OF
FIFTEEN YEARS, FOR THE PURCHASE OF  RENEWABLE  ENERGY  CREDITS  FROM  AN
OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM.
  (VII)  "QUALIFYING  OWNER"  MEANS  THE OWNER OF A QUALIFYING RENEWABLE
ENERGY SYSTEM THAT IS ALSO A:
  (A) RESIDENT OF NEW YORK STATE;
  (B) LIMITED LIABILITY COMPANY  ORGANIZED  UNDER  THE  NEW  YORK  STATE
LIMITED  LIABILITY  COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO
ARE NEW YORK STATE RESIDENTS; OR
  (C) NEW YORK NOT-FOR-PROFIT ORGANIZATION ORGANIZED UNDER THE NEW  YORK
STATE NOT-FOR-PROFIT CORPORATION LAW.
  (VIII)  "QUALIFIED  RENEWABLE  ENERGY  GENERATION"  MEANS THE ELECTRIC
ENERGY MEASURE IN KILOWATT-HOURS PRODUCED  FROM  A  QUALIFIED  RENEWABLE
ENERGY SYSTEM.
  (IX)  "QUALIFIED  RENEWABLE  ENERGY  SYSTEM"  SHALL MEAN A DISTRIBUTED
RENEWABLE ENERGY RESOURCE SYSTEM OR  TECHNOLOGY  AS  DETERMINED  BY  THE
PUBLIC  SERVICE  COMMISSION  CONSISTENT  WITH THE DEFINITION PROVIDED IN
SUBPARAGRAPH (II) OF THIS PARAGRAPH THAT MAY RESULT IN THE  COST  EFFEC-
TIVE  PRODUCTION  OF  ELECTRICITY FROM RENEWABLE RESOURCES THAT HAS BEEN
CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS
SUBDIVISION, THEY SHALL INCLUDE:
  (A) WIND;
  (B) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS;
  (C) SOLAR THERMAL;
  (D) GEOTHERMAL;
  (E) FUEL CELL TECHNOLOGY;
  (F)  HYDRO-KINETIC,  INCLUDING  APPROVED  RIVER  OR  TIDAL  GENERATION
SYSTEMS;
  (G) HYDROELECTRIC;
  (H) BIOMASS;
  (I) ANAEROBIC DIGESTION; AND
  (J) LANDFILL GAS TO ENERGY SYSTEMS.
  (X)  "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI-
BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF  QUALIFIED  RENEWABLE  ENERGY
GENERATION.
  (XI) THE TERM "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING
AS SET FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW.
  (XII)  "RETAIL  ELECTRIC  SUPPLIER" MEANS AN ENTITY AUTHORIZED TO SELL
ELECTRICITY AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE  CUSTOM-
ERS  IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS A
PROVIDER OF LAST RESORT OR AN ENERGY SERVICE  COMPANY  APPROVED  BY  THE
PUBLIC SERVICE COMMISSION FOR SUCH PURPOSE.
  (XIII)  "SMALL  RETAIL  DISTRIBUTED  CUSTOMER-SIDED  RENEWABLE  ENERGY
GENERATION"  MEANS  RETAIL  DISTRIBUTED  RENEWABLE   ENERGY   GENERATION
PRODUCED BY A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR LESS
THAN ONE HUNDRED KILOWATTS IN SIZE.
  B.  (I) THE AUTHORITY SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM
CONTRACTS OF A MINIMUM OF FIFTEEN YEARS OR PAYMENT TO THE COMMISSION FOR
COMPLIANCE, RECS ASSOCIATED WITH GIGAWATT-HOURS OF  QUALIFIED  RENEWABLE
ENERGY GENERATION IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:
COMPLIANCE                       ANNUAL
   YEAR                       REQUIREMENT
  2017                          0.25%
  2018                          0.40%
  2019                          0.55%
  2020                          0.70%

A. 975                              8

  2021                          0.90%
  2022                          1.10%
  2023                          1.30%
  2024                          1.50%
  2025                          1.75%
  2026                          2.00%
  2027                          2.50%
  2028                          3.00%
  2029                          3.50%
  2030                          4.50%
  (II) IF BY THE YEAR TWO THOUSAND THIRTY-TWO NEW YORK STATE HAS NOT MET
ITS  GOAL  OF  THIRTY-FIVE PERCENT ELECTRIC ENERGY FROM RENEWABLE ENERGY
SOURCES, THE PROGRAM ESTABLISHED IN SECTION SIXTY-SIX-N  OF  THE  PUBLIC
SERVICE  LAW SHALL BE EXTENDED AND SHALL GROW AT A RATE OF 0.85 PERCENT-
AGE POINTS UNTIL THIS GOAL IS ACHIEVED.
  (III) AT LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE
TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF
RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED  DISTRIBUTED  RENEWABLE
ENERGY GENERATION.  IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT-
ER,  THE  INDEPENDENT  AUTHORITY BUDGET OFFICE, IN CONSULTATION WITH THE
COMMISSION, SHALL UNDERTAKE A REVIEW CONCERNING THE AUTHORITIES' ABILITY
TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL  OBLIGATIONS  THROUGH  SMALL
RETAIL  CUSTOMER-SIDED  DISTRIBUTED  RENEWABLE ENERGY GENERATION. IF THE
INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE  COMMIS-
SION,  CONCLUDES  THAT  THE  AUTHORITY CANNOT REASONABLY MEET THIS OBLI-
GATION, THE INDEPENDENT AUTHORITIES BUDGET OFFICE MAY ALLOW THE AUTHORI-
TY TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER
SOURCES.
  (IV) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH QUALIFIED
RENEWABLE ENERGY GENERATION SHALL  CONTINUE  UNTIL  ALL  EXISTING  POWER
PURCHASE AGREEMENTS HAVE EXPIRED.
  (V) RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH
THE  REQUIREMENTS  OF THE RENEWABLE PORTFOLIO STANDARD MAY USE A PORTION
OF THE RECS PROCURED UNDER THIS ACT  TOWARD  THEIR  RENEWABLE  PORTFOLIO
STANDARD  REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED UNDER
THIS ACT MAY BE APPLIED TOWARD A RETAIL  ELECTRIC  SUPPLIER'S  RENEWABLE
PORTFOLIO STANDARD REQUIREMENT.
  (VI)  THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS PARA-
GRAPH THROUGH THE PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM THE
ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION.
  (VII) THE AUTHORITY SHALL TRACK RECS THROUGH THE AUTOMATED REC  TRACK-
ING  SYSTEM  ESTABLISHED PURSUANT TO PARAGRAPH (F) OF SUBDIVISION TWO OF
SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (VIII) RECS SHALL BE ELIGIBLE  FOR  USE  IN  MEETING  THE  OBLIGATIONS
ESTABLISHED IN THIS SUBDIVISION IN THE COMPLIANCE YEAR IN WHICH THEY ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  (IX)  IN  THE  EVENT  THAT RETAIL ELECTRIC SUPPLIERS CANNOT MEET THEIR
OBLIGATIONS ESTABLISHED IN THIS PARAGRAPH, THEY SHALL  BE  PERMITTED  TO
DISCHARGE  SUCH  OBLIGATIONS BY MAKING AN ALTERNATIVE COMPLIANCE PAYMENT
IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED, HOWEVER, THAT  THE
COMMISSION  SHALL  SET  SUCH PAYMENT AT A LEVEL THAT SHALL STIMULATE THE
DEVELOPMENT OF NEW QUALIFIED RENEWABLE ENERGY  GENERATION  NECESSARY  TO
ACHIEVE THE OBLIGATIONS ESTABLISHED IN THIS PARAGRAPH.
  C.  (I)  NO  LATER  THAN  DECEMBER  FIRST,  TWO THOUSAND NINETEEN, THE
AUTHORITY SHALL SUBMIT TO THE  INDEPENDENT  AUTHORITIES  BUDGET  OFFICE,
GOVERNOR,  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY,

A. 975                              9

THE TEMPORARY PRESIDENT OF  THE  SENATE,  THE  MAJORITY  LEADER  OF  THE
SENATE,  THE  MINORITY  LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY
AND TELECOMMUNICATIONS COMMITTEE, THE RANKING  MINORITY  MEMBER  OF  THE
SENATE  ENERGY  AND  TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY
ENERGY COMMITTEE, THE RANKING MINORITY MEMBER  OF  THE  ASSEMBLY  ENERGY
COMMITTEE,  AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEM-
BLY, AND SHALL POST ON ITS  WEBSITE,  A  SOLICITATION  PLAN  THAT  SHALL
INCLUDE  A  TIMETABLE  AND METHODOLOGY FOR SOLICITING PROPOSALS FOR RECS
ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION OTHER  THAN  SMALL
RETAIL  DISTRIBUTED  CUSTOMER-SIDED RENEWABLE ENERGY GENERATION, FOR THE
PURPOSE OF FULFILLING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B OF THIS
SUBDIVISION.
  (II) THE AUTHORITY SHALL EXECUTE ITS SOLICITATION PLAN NO  LATER  THAN
THIRTY  DAYS  AND  SHALL  SUBMIT  TO  THE INDEPENDENT AUTHORITIES BUDGET
OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEM-
BLY, TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF  THE  SENATE,
MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMU-
NICATIONS  COMMITTEE,  THE  RANKING MINORITY MEMBER OF THE SENATE ENERGY
AND TELECOMMUNICATIONS COMMITTEE, CHAIR OF THE ASSEMBLY  ENERGY  COMMIT-
TEE,  THE  RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND
CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE  ASSEMBLY,  AND  SHALL
POST  ON  ITS  WEBSITE,  ITS  PROCUREMENT  PLAN  COMPRISED  OF ANY POWER
PURCHASE AGREEMENTS FOR RECS ASSOCIATED WITH  SMALL  RETAIL  DISTRIBUTED
CUSTOMER-SIDED  RENEWABLE  ENERGY  GENERATION  OTHER  THAN  SMALL RETAIL
DISTRIBUTED RENEWABLE ENERGY  GENERATION.  THE  INDEPENDENT  AUTHORITIES
BUDGET  OFFICE SHALL REVIEW SUCH PLAN TO ASSESS WHETHER IT IS THE RESULT
OF A FAIR, OPEN, COMPETITIVE AND TRANSPARENT PROCESS AND SHALL REPORT TO
THE GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY LEADER OF THE  ASSEMBLY,
TEMPORARY PRESIDENT OF THE SENATE, MINORITY LEADER OF THE SENATE, MAJOR-
ITY  LEADER  OF  THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNI-
CATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY  AND
TELECOMMUNICATIONS  COMMITTEE,  CHAIR  OF THE ASSEMBLY ENERGY COMMITTEE,
THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND  CHAIR
OF  THE  RENEWABLE  ENERGY  SUBCOMMITTEE  IN  THE ASSEMBLY REGARDING THE
RESULTS OF SUCH ASSESSMENT.
  (III) NO LATER THAN JANUARY FIRST, TWO THOUSAND NINETEEN, THE AUTHORI-
TY SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE,  GOVERNOR,
SPEAKER  OF  THE  ASSEMBLY,  MINORITY  LEADER OF THE ASSEMBLY, TEMPORARY
PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY  LEADER
OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT-
TEE,  THE  RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI-
CATIONS COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE,  THE  RANKING
MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE AND CHAIR OF THE RENEW-
ABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE,
A  PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCURE-
MENT OF RECS ASSOCIATED WITH  SMALL  RETAIL  DISTRIBUTED  CUSTOMER-SIDED
RENEWABLE  ENERGY GENERATION ESTABLISHED IN PARAGRAPH B OF THIS SUBDIVI-
SION.
  D. (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND  TWENTY-ONE,  AND  NO
LATER  THAN  JANUARY  FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO
THOUSAND THIRTY-TWO, THE  AUTHORITY  SHALL  REPORT  TO  THE  INDEPENDENT
AUTHORITIES BUDGET OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, THE MINOR-
ITY  LEADER  OF  THE  ASSEMBLY,  THE  TEMPORARY PRESIDENT OF THE SENATE,
MAJORITY LEADER OF THE SENATE, THE MINORITY LEADER OF THE SENATE,  CHAIR
OF  THE  SENATE  ENERGY  AND  TELECOMMUNICATIONS  COMMITTEE, THE RANKING
MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,

A. 975                             10

CHAIR  OF  THE ASSEMBLY ENERGY COMMITTEE, THE RANKING MINORITY MEMBER OF
THE ASSEMBLY ENERGY COMMITTEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOM-
MITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE, A REPORT  REGARD-
ING  ITS  PROGRESS IN MEETING ITS OBLIGATIONS ESTABLISHED IN PARAGRAPH B
OF THIS SUBDIVISION.
  (II) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT  TO  THIS  PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR  THE  TOTAL  OF  ALL  CALENDAR YEARS TO DATE: (A) THE NUMBER OF RECS
ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION  RETIRED  FOR  THE
PURPOSES OF MEETING THE AUTHORITY'S OBLIGATIONS ESTABLISHED IN PARAGRAPH
B  OF THIS SUBDIVISION; (B) THE NUMBER OF SUCH RECS EACH ASSOCIATED WITH
SMALL RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION  AND
RETAIL  DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY EQUIPMENT OF
ANY SIZE THAT WERE PROCURED;  (C)  THE  NUMBER  OF  SUCH  RECS  PROCURED
THROUGH POWER PURCHASE AGREEMENTS AND THE AUTHORITY'S OWNERSHIP OF QUAL-
IFIED RENEWABLE ENERGY GENERATION, RESPECTIVELY; AND (D) THE AMOUNT PAID
TO  QUALIFIED RENEWABLE ENERGY GENERATORS THROUGH TARIFFS FOR RECS ASSO-
CIATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION.
  S 4. 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.  PROCUREMENT OF RENEWABLE ENERGY CREDITS.  1.  AS  USED  IN
THIS SECTION:
  (A)  "ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A PAYMENT OF A DEFINED
DOLLAR AMOUNT PER MEGAWATT-HOUR, AS ESTABLISHED BY  THE  PUBLIC  SERVICE
COMMISSION,  THAT  THE  AUTHORITY  SHALL  SUBMIT  TO  THE PUBLIC SERVICE
COMMISSION IN ORDER TO COMPLY WITH ITS ANNUAL OBLIGATIONS ESTABLISHED IN
SUBDIVISION TWO OF THIS SECTION.
  (B) "DISTRIBUTED RENEWABLE ENERGY RESOURCE SYSTEMS" MEANS  SMALL-SCALE
POWER  GENERATION TECHNOLOGIES IN THE RANGE OF ONE KILOWATT TO TEN THOU-
SAND KILOWATTS USED TO PROVIDE AN ALTERNATIVE TO OR  AN  ENHANCEMENT  OF
THE TRADITIONAL ELECTRIC POWER SYSTEM, USING RENEWABLE ENERGY RESOURCES.
  (C)  "DISTRIBUTED RENEWABLE ENERGY GENERATION" MEANS QUALIFIED RENEWA-
BLE ENERGY GENERATION PRODUCED BY A QUALIFIED  RENEWABLE  ENERGY  SYSTEM
THAT  IS  INTERCONNECTED  TO THE CUSTOMER'S SIDE OR UTILITY DISTRIBUTION
COMPANY METER.
  (D) "ELECTRIC DISTRIBUTION COMPANY" MEANS  AN  INVESTOR-OWNED  UTILITY
THAT DISTRIBUTES ELECTRICITY WITHIN NEW YORK STATE.
  (E)  "NEW  ENERGY  TECHNOLOGIES"  MEANS  ALL  METHODS USED TO PRODUCE,
DISTRIBUTE, CONSERVE AND STORE ENERGY BY METHODS NOT IN  COMMON  COMMER-
CIAL  USE,  WITH  EMPHASIS ON RENEWABLE ENERGY SOURCES INCLUDING BUT NOT
LIMITED TO SOLAR, WIND, BIOCONVERSION AND SOLID WASTE.
  (F) "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT, FOR  A  MINIMUM  OF
FIFTEEN  YEARS,  FOR  THE  PURCHASE  OF RENEWABLE ENERGY CREDITS FROM AN
OWNER OF A QUALIFIED RENEWABLE ENERGY SYSTEM.
  (G) "QUALIFYING OWNER" MEANS THE OWNER OF A QUALIFYING RENEWABLE ENER-
GY SYSTEM THAT IS ALSO A:
  (I) RESIDENT OF NEW YORK STATE;
  (II) LIMITED LIABILITY COMPANY ORGANIZED  UNDER  THE  NEW  YORK  STATE
LIMITED  LIABILITY  COMPANY LAW AND MADE UP OF A MAJORITY OF MEMBERS WHO
ARE NEW YORK STATE RESIDENTS; OR
  (III) NEW YORK NOT-FOR-PROFIT ORGANIZATION  ORGANIZED  UNDER  THE  NEW
YORK STATE NOT-FOR-PROFIT CORPORATION LAW.

A. 975                             11

  (H)  "QUALIFIED RENEWABLE ENERGY GENERATION" MEANS THE ELECTRIC ENERGY
MEASURE IN KILOWATT-HOURS PRODUCED FROM  A  QUALIFIED  RENEWABLE  ENERGY
SYSTEM.
  (I)  "QUALIFIED  RENEWABLE  ENERGY  SYSTEM"  SHALL  MEAN A DISTRIBUTED
RENEWABLE ENERGY RESOURCE SYSTEM OR  TECHNOLOGY  AS  DETERMINED  BY  THE
PUBLIC  SERVICE  COMMISSION  CONSISTENT  WITH THE DEFINITION PROVIDED IN
PARAGRAPH (B) OF THIS SUBDIVISION THAT MAY RESULT IN THE COST  EFFECTIVE
PRODUCTION  OF  ELECTRICITY  FROM  RENEWABLE  RESOURCES  THAT  HAS  BEEN
CONSTRUCTED AND IS OWNED BY A QUALIFYING OWNER. FOR THE PURPOSES OF THIS
SECTION, THEY SHALL INCLUDE:
  (I) WIND;
  (II) SOLAR PHOTOVOLTAIC, INCLUDING ROOFTOP AND STAND ALONE SYSTEMS;
  (III) SOLAR THERMAL;
  (IV) GEOTHERMAL;
  (V) FUEL CELL TECHNOLOGY;
  (VI) HYDRO-KINETIC,  INCLUDING  APPROVED  RIVER  OR  TIDAL  GENERATION
SYSTEMS;
  (VII) HYDROELECTRIC;
  (VIII) BIOMASS;
  (IX) ANAEROBIC DIGESTION; AND
  (X) LANDFILL GAS TO ENERGY SYSTEMS.
  (J)  "RENEWABLE ENERGY CREDIT" OR "REC" MEANS THE ENVIRONMENTAL ATTRI-
BUTES ASSOCIATED WITH ONE MEGAWATT-HOUR OF  QUALIFIED  RENEWABLE  ENERGY
GENERATION.
  (K)  THE TERM "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING
AS SET FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW.
  (L) "RETAIL ELECTRIC SUPPLIER" MEANS  AN  ENTITY  AUTHORIZED  TO  SELL
ELECTRICITY  AT RETAIL RATES AND TERMS AND CONDITIONS TO END-USE CUSTOM-
ERS IN NEW YORK, INCLUDING AN ELECTRIC DISTRIBUTION COMPANY ACTING AS  A
PROVIDER  OF  LAST  RESORT  OR AN ENERGY SERVICE COMPANY APPROVED BY THE
PUBLIC SERVICE COMMISSION FOR SUCH PURPOSE.
  (M) "SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE  ENERGY  GENER-
ATION"  MEANS RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION PRODUCED BY
A QUALIFIED RENEWABLE ENERGY SYSTEM THAT IS EQUAL TO OR  LESS  THAN  ONE
HUNDRED KILOWATTS IN SIZE.
  2.  (A) THE AUTHORITY SHALL ANNUALLY PROCURE, EITHER THROUGH LONG-TERM
CONTRACTS OF A MINIMUM OF FIFTEEN YEARS OR PAYMENT TO THE PUBLIC SERVICE
COMMISSION FOR COMPLIANCE, RECS ASSOCIATED WITH GIGAWATT-HOURS OF QUALI-
FIED RENEWABLE ENERGY GENERATION IN ACCORDANCE WITH THE FOLLOWING SCHED-
ULE:

COMPLIANCE               ANNUAL
YEAR                     REQUIREMENT
2017                     0.25%
2018                     0.40%
2019                     0.55%
2020                     0.70%
2021                     0.90%
2022                     1.10%
2023                     1.30%
2024                     1.50%
2025                     1.75%
2026                     2.00%
2027                     2.50%
2028                     3.00%

A. 975                             12

2029                     3.50%
2030                     4.50%
  (B)  IF BY THE YEAR TWO THOUSAND THIRTY-TWO NEW YORK STATE HAS NOT MET
ITS GOAL OF THIRTY-FIVE PERCENT ELECTRIC ENERGY  FROM  RENEWABLE  ENERGY
SOURCES,  THE  PROGRAM  ESTABLISHED IN SECTION SIXTY-SIX-N OF THE PUBLIC
SERVICE LAW SHALL BE EXTENDED AND SHALL GROW AT A RATE OF 0.85  PERCENT-
AGE POINTS UNTIL THIS GOAL IS ACHIEVED.
  (C)  AT  LEAST TWENTY-FIVE PERCENT OF THE ANNUAL OBLIGATION APPLICABLE
TO EACH RETAIL ELECTRIC SUPPLIER SHALL BE MET THROUGH THE PROCUREMENT OF
RECS ASSOCIATED WITH SMALL RETAIL CUSTOMER-SIDED  DISTRIBUTED  RENEWABLE
ENERGY GENERATION.  IN THE THIRD COMPLIANCE YEAR AND EACH YEAR THEREAFT-
ER,  THE INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE
COMMISSION, SHALL UNDERTAKE A REVIEW CONCERNING THE AUTHORITIES' ABILITY
TO MEET TWENTY-FIVE PERCENT OF THEIR ANNUAL  OBLIGATIONS  THROUGH  SMALL
RETAIL  CUSTOMER-SIDED  DISTRIBUTED  RENEWABLE ENERGY GENERATION. IF THE
INDEPENDENT AUTHORITIES BUDGET OFFICE, IN CONSULTATION WITH THE  COMMIS-
SION,  CONCLUDES  THAT  THE  AUTHORITY CANNOT REASONABLY MEET THIS OBLI-
GATION, THE INDEPENDENT AUTHORITIES BUDGET OFFICE MAY ALLOW THE AUTHORI-
TY TO APPLY FOR A WAIVER TO PROCURE POWER PURCHASE AGREEMENTS FROM OTHER
SOURCES.
  (D) OBLIGATIONS FOR THE PROCUREMENT OF RECS ASSOCIATED WITH  QUALIFIED
RENEWABLE  ENERGY  GENERATION  SHALL  CONTINUE  UNTIL ALL EXISTING POWER
PURCHASE AGREEMENTS HAVE EXPIRED.
  (E) THE AUTHORITY MAY MEET ITS OBLIGATIONS ESTABLISHED IN THIS  SUBDI-
VISION  THROUGH  THE  PROCUREMENT OF RECS TOGETHER WITH OR SEPARATE FROM
THE ASSOCIATED QUALIFIED RENEWABLE ENERGY GENERATION.
  (F) RETAIL ELECTRIC SUPPLIERS THAT ARE ALSO SUBJECT TO COMPLIANCE WITH
THE REQUIREMENTS OF THE RENEWABLE PORTFOLIO STANDARD MAY USE  A  PORTION
OF  THE  RECS  PROCURED  UNDER THIS ACT TOWARD THEIR RENEWABLE PORTFOLIO
STANDARD REQUIREMENTS AS FOLLOWS: TWENTY PERCENT OF RECS PROCURED  UNDER
THIS  ACT  MAY  BE APPLIED TOWARD A RETAIL ELECTRIC SUPPLIER'S RENEWABLE
PORTFOLIO STANDARD REQUIREMENT.
  (G) THE AUTHORITY SHALL TRACK RECS THROUGH THE AUTOMATED REC  TRACKING
SYSTEM  ESTABLISHED  PURSUANT  TO  PARAGRAPH  (F)  OF SUBDIVISION TWO OF
SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  (H) RECS SHALL BE ELIGIBLE FOR USE IN MEETING THE  OBLIGATIONS  ESTAB-
LISHED  IN  THIS  SUBDIVISION  IN  THE COMPLIANCE YEAR IN WHICH THEY ARE
CREATED AND FOR THE FOLLOWING TWO COMPLIANCE YEARS.
  (I) IN THE EVENT THAT RETAIL  ELECTRIC  SUPPLIERS  CANNOT  MEET  THEIR
OBLIGATIONS  ESTABLISHED IN THIS SUBDIVISION, THEY SHALL BE PERMITTED TO
DISCHARGE SUCH OBLIGATIONS BY MAKING AN ALTERNATIVE  COMPLIANCE  PAYMENT
IN  AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED, HOWEVER, THAT THE
COMMISSION SHALL SET SUCH PAYMENT AT A LEVEL THAT  SHALL  STIMULATE  THE
DEVELOPMENT  OF  NEW  QUALIFIED RENEWABLE ENERGY GENERATION NECESSARY TO
ACHIEVE THE OBLIGATIONS ESTABLISHED IN THIS SUBDIVISION.
  (J) (I) NO LATER THAN  DECEMBER  FIRST,  TWO  THOUSAND  NINETEEN,  THE
AUTHORITY  SHALL  SUBMIT  TO  THE INDEPENDENT AUTHORITIES BUDGET OFFICE,
GOVERNOR, SPEAKER OF THE ASSEMBLY,  MINORITY  LEADER  OF  THE  ASSEMBLY,
TEMPORARY PRESIDENT OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINOR-
ITY  LEADER  OF  THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNI-
CATIONS COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE ENERGY  AND
TELECOMMUNICATIONS  COMMITTEE,  CHAIR  OF THE ASSEMBLY ENERGY COMMITTEE,
THE RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMITTEE, AND  CHAIR
OF  THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON
ITS WEBSITE, A SOLICITATION PLAN THAT  SHALL  INCLUDE  A  TIMETABLE  AND
METHODOLOGY  FOR SOLICITING PROPOSALS FOR RECS ASSOCIATED WITH QUALIFIED

A. 975                             13

RENEWABLE ENERGY GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED  CUSTOM-
ER-SIDED  RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF FULFILLING ITS
OBLIGATIONS ESTABLISHED IN THIS SUBDIVISION.
  (II)  THE  AUTHORITY  SHALL  EXECUTE  ITS  SOLICITATION PLAN AND SHALL
SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE,  GOVERNOR,  SPEAKER
OF THE ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF
THE  SENATE,  MAJORITY  LEADER  OF  THE  SENATE,  MINORITY LEADER OF THE
SENATE, CHAIR OF THE SENATE  ENERGY  AND  TELECOMMUNICATIONS  COMMITTEE,
RANKING  MINORITY  MEMBER  OF  THE  SENATE ENERGY AND TELECOMMUNICATIONS
COMMITTEE, CHAIR OF THE ASSEMBLY ENERGY COMMITTEE, THE RANKING  MINORITY
MEMBER  OF  THE  ASSEMBLY  ENERGY  COMMITTEE, AND CHAIR OF THE RENEWABLE
ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON ITS WEBSITE,  ITS
PROCUREMENT  PLAN  COMPRISED  OF  ANY POWER PURCHASE AGREEMENTS FOR RECS
ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWABLE ENERGY
GENERATION OTHER THAN SMALL RETAIL DISTRIBUTED RENEWABLE  ENERGY  GENER-
ATION.  THE INDEPENDENT AUTHORITIES BUDGET OFFICE SHALL REVIEW SUCH PLAN
TO ASSESS WHETHER IT IS THE RESULT OF  A  FAIR,  OPEN,  COMPETITIVE  AND
TRANSPARENT  PROCESS  AND  SHALL  REPORT TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, MINORITY LEADER OF THE ASSEMBLY, TEMPORARY  PRESIDENT  OF  THE
SENATE,  MAJORITY  LEADER  OF  THE  SENATE,  THE  MINORITY LEADER OF THE
SENATE, CHAIR OF THE SENATE  ENERGY  AND  TELECOMMUNICATIONS  COMMITTEE,
RANKING  MINORITY  MEMBER  OF  THE  SENATE ENERGY AND TELECOMMUNICATIONS
COMMITTEE, CHAIR OF THE  ASSEMBLY  ENERGY  COMMITTEE,  RANKING  MINORITY
MEMBER  OF  THE  ASSEMBLY  ENERGY  COMMITTEE, AND CHAIR OF THE RENEWABLE
ENERGY SUBCOMMITTEE IN  THE  ASSEMBLY  REGARDING  THE  RESULTS  OF  SUCH
ASSESSMENT.
  (III) NO LATER THAN JANUARY FIRST, TWO THOUSAND NINETEEN, THE AUTHORI-
TY  SHALL SUBMIT TO THE INDEPENDENT AUTHORITIES BUDGET OFFICE, GOVERNOR,
SPEAKER OF THE ASSEMBLY, MINORITY  LEADER  OF  THE  ASSEMBLY,  TEMPORARY
PRESIDENT  OF THE SENATE, MAJORITY LEADER OF THE SENATE, MINORITY LEADER
OF THE SENATE, CHAIR OF THE SENATE ENERGY AND TELECOMMUNICATIONS COMMIT-
TEE, RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNICATIONS
COMMITTEE, CHAIR OF THE  ASSEMBLY  ENERGY  COMMITTEE,  RANKING  MINORITY
MEMBER  OF  THE  ASSEMBLY  ENERGY  COMMITTEE, AND CHAIR OF THE RENEWABLE
ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND SHALL POST ON  ITS  WEBSITE,  A
PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING TO THE PROCUREMENT
OF  RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOMER-SIDED RENEWA-
BLE ENERGY GENERATION ESTABLISHED IN THIS SUBDIVISION.
  (K) (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE,  AND  NO
LATER  THAN  JANUARY  FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO
THOUSAND THIRTY-TWO, THE  AUTHORITY  SHALL  REPORT  TO  THE  INDEPENDENT
AUTHORITIES  BUDGET  OFFICE, GOVERNOR, SPEAKER OF THE ASSEMBLY, MINORITY
LEADER OF THE ASSEMBLY, TEMPORARY  PRESIDENT  OF  THE  SENATE,  MAJORITY
LEADER OF THE SENATE, MINORITY LEADER OF THE SENATE, CHAIR OF THE SENATE
ENERGY  AND TELECOMMUNICATIONS COMMITTEE, RANKING MINORITY MEMBER OF THE
SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE, CHAIR  OF  THE  ASSEMBLY
ENERGY COMMITTEE, RANKING MINORITY MEMBER OF THE ASSEMBLY ENERGY COMMIT-
TEE, AND CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE ASSEMBLY, AND
SHALL  POST  ON  ITS WEBSITE, A REPORT REGARDING ITS PROGRESS IN MEETING
ITS OBLIGATIONS ESTABLISHED IN THIS SUBDIVISION.
  (II) EACH REPORT THAT SHALL BE SUBMITTED PURSUANT  TO  THIS  PARAGRAPH
SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR THE PREVIOUS CALENDAR YEAR AND
FOR  THE  TOTAL  OF  ALL  CALENDAR YEARS TO DATE: (A) THE NUMBER OF RECS
ASSOCIATED WITH QUALIFIED RENEWABLE ENERGY GENERATION  RETIRED  FOR  THE
PURPOSES  OF  MEETING  THE  AUTHORITY'S  OBLIGATIONS ESTABLISHED IN THIS
SUBDIVISION; (B) THE NUMBER OF SUCH  RECS  EACH  ASSOCIATED  WITH  SMALL

A. 975                             14

RETAIL CUSTOMER-SIDED DISTRIBUTED RENEWABLE ENERGY GENERATION AND RETAIL
DISTRIBUTED  RENEWABLE  ENERGY  GENERATION  PRODUCED BY EQUIPMENT OF ANY
SIZE THAT WERE PROCURED; (C) THE NUMBER OF SUCH  RECS  PROCURED  THROUGH
POWER  PURCHASE  AGREEMENTS  AND  THE AUTHORITY'S OWNERSHIP OF QUALIFIED
RENEWABLE ENERGY GENERATION, RESPECTIVELY; AND (D) THE  AMOUNT  PAID  TO
QUALIFIED  RENEWABLE  ENERGY GENERATORS THROUGH TARIFFS FOR RECS ASSOCI-
ATED WITH SMALL RETAIL DISTRIBUTED RENEWABLE ENERGY GENERATION.
  S 5. 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  6.  This act shall take effect immediately; provided, however, that
this act shall expire and be deemed repealed on the date the commission-
er of the public service commission notifies the legislative bill draft-
ing commission of the occurrence of the implementation of a substantive-
ly similar federal program.