Senate Bill S3613A

2015-2016 Legislative Session

Relates to "power purchase agreements" concerning energy technologies eligible for net metering

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to energy and telecommunications
Jun 25, 2015	committed to rules
Jun 15, 2015	amended on third reading 3613a
May 04, 2015	advanced to third reading
Apr 29, 2015	2nd report cal.
Apr 28, 2015	1st report cal.456
Feb 13, 2015	referred to energy and telecommunications

Votes

- Apr 28, 2015 - Energy And Telecommunications Committee Vote
  S3613A
  
  Aye
  
  11
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Energy And Telecommunications Committee Vote: Apr 28, 2015
      
      aye (11)
      
      Carlucci
      
      Croci
      
      Dilan
      
      Flanagan
      
      Griffo
      
      Hamilton
      
      Kennedy
      
      Little
      
      O'Mara
      
      Parker
      
      Ritchie

Bill Amendments

Original

A (Active)

2015-S3613 - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Energy Law
Laws Affected:: Amd §9-102, add §9-104, Energy L
Versions Introduced in 2013-2014 Legislative Session:: S6958

2015-S3613 - Summary

Relates to "power purchase agreements" concerning energy technologies eligible for net metering.

2015-S3613 - Sponsor Memo

                                BILL NUMBER:S3613

TITLE OF BILL:

An act to amend the energy law, in relation to energy technologies
eligible for net metering

PURPOSE:

To allow the full deployment of clean energy technologies to school
districts, municipalities and other public entities by making it
permissible for long-term power purchase agreements to be binding on
present and future governing boards.

SUMMARY OF PROVISIONS:

Section 1. Defines "Power Purchase Agreement"

Section 2. Amends the energy Law to apply the requirements of a
long-term power purchase agreement to current and future governing
boards of school districts and municipalities, except upon cause as
defined in the power purchase agreement. This section also encourages
agencies, municipalities and school districts to consult with NYSERDA,
and specifies that the Commissioner of Education is not required to
develop a pre-approved form for Power Purchase Agreements, but is
authorized to develop rules and regulations related to safety.

Section 3. Sets forth the effective date.

JUSTIFICATION:

Clean and renewable energy technologies are expanding exponentially in
New York State as more residences and businesses move to take
advantage of clean energy white lowering their own bills. By utilizing
power purchase agreements, installers of these energy technologies can
pay for the up-front cost of installation of the system, borrow
capital from the bank, and have a firm source of repayment through the
profit the company makes from the sale of electricity to the customer.
This is a very positive development, because it saves the customer
money while eliminating the need for a large up-front capital
investment and also creating jobs.  in addition, the more clean energy
technologies that are installed, the lower our emissions are which
will allow the state to better meet environmental goals.

However, we need to do more to promote the use of clean energy
technologies by school districts, municipalities and other public
entities.

This bill is necessary because state rules and judicial decisions can
act to limit the benefits inherent to a power purchase agreement as it
relates to school districts, municipalities and Boards of Cooperative
Educational Services. Basically, for a power purchase agreement to be
executed and function properly, it must be a long-term contract of 15
years or more. Unfortunately, rules that govern municipal bodies, do
not allow a current Board to commit future boards to these kinds of
costs, except in certain circumstances. One such circumstance is an
energy performance contract. This bill simply allows a power purchase


agreement to operate the same way that an energy performance contract
does under the State Energy Law. This bill also eliminates the need
for the Commissioner of Education to approve a power purchase
agreement, in order to prevent unwarranted delays.

LEGISLATIVE HISTORY:

2014- S. 6958a - Energy Committee/A. 9516a - Ways and Means.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediate.

2015-S3613 - Bill Text download pdf

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

                                  3613

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 13, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to  amend  the  energy  law, in relation to energy technologies
  eligible for net metering

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

  Section  1. Section 9-102 of the energy law is amended by adding a new
subdivision 5 to read as follows:
  5. "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT  IN  CONNECTION  WITH
THE  INSTALLATION,  MAINTENANCE  AND  MANAGEMENT OF AN ENERGY TECHNOLOGY
ELIGIBLE FOR NET ENERGY METERING  PURSUANT  TO  SECTION  SIXTY-SIX-J  OR
SIXTY-SIX-L OF THE PUBLIC SERVICE LAW, WHERE A THIRD PARTY OWNER (NON-A-
GENCY  OR  NON-MUNICIPAL  OWNER)  GENERATES ELECTRICITY FROM SUCH ENERGY
TECHNOLOGY (WHETHER OR NOT SUCH ENERGY  TECHNOLOGY  IS  LOCATED  AT  THE
POINT  OF  CONSUMPTION) AND SELLS THE RESULTING ELECTRICITY TO AN AGENCY
OR MUNICIPALITY FOR A PRICE, VOLUME AND DURATION AS  SET  FORTH  IN  THE
AGREEMENT.
  S  2.  The energy law is amended by adding a new section 9-104 to read
as follows:
  S 9-104. POWER  PURCHASE  AGREEMENTS.  1.  NOTWITHSTANDING  ANY  OTHER
PROVISION  OF  LAW OR JUDICIAL DECISION (INCLUDING ANY THAT RESTRICT THE
AUTHORITY OF A GOVERNING BODY OF  AN  AGENCY  OR  MUNICIPALITY  TO  BIND
SUBSEQUENT GOVERNING BODIES OF SUCH AGENCY OR MUNICIPALITY), ANY AGENCY,
MUNICIPALITY,  OR  PUBLIC  AUTHORITY, IN ADDITION TO EXISTING POWERS, IS
AUTHORIZED TO ENTER INTO POWER PURCHASE AGREEMENTS OF UP TO  THIRTY-FIVE
YEARS  DURATION,  PROVIDED  THAT THE DURATION OF ANY SUCH CONTRACT SHALL
NOT EXCEED THE REASONABLY EXPECTED USEFUL LIFE OF THE ENERGY  FACILITIES
OR EQUIPMENT SUBJECT TO SUCH AGREEMENT.
  2.  POWER  PURCHASE  AGREEMENTS  SHALL  NOT BE REQUIRED TO INCLUDE THE
CLAUSE SET FORTH IN SUBDIVISION TWO OF SECTION 9-103 OF THIS ARTICLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00536-01-5

S. 3613                             2

  3. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW  OR  JUDICIAL  DECISION
(INCLUDING  ANY  THAT  RESTRICT  THE AUTHORITY OF A GOVERNING BODY OF AN
AGENCY OR MUNICIPALITY TO BIND SUBSEQUENT GOVERNING BODIES OF SUCH AGEN-
CY OR MUNICIPALITY), POWER PURCHASE AGREEMENTS SHALL ONLY BE VOID, VOID-
ABLE  OR TERMINABLE BY EITHER THE THIRD PARTY OWNER OR THE AGENCY, MUNI-
CIPALITY OR PUBLIC AUTHORITY FOR NON-PERFORMANCE BY THE OTHER PARTY,  AS
SET FORTH IN THE POWER PURCHASE AGREEMENT.
  4.  IN  THE CASE OF A SCHOOL DISTRICT OR A BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES, A POWER PURCHASE AGREEMENT SHALL BE AN ORDINARY CONTIN-
GENT EXPENSE, AND SHALL IN NO EVENT BE CONSTRUED AS OR DEEMED A LEASE OR
LEASE-PURCHASE OF A BUILDING OR FACILITY, FOR PURPOSES OF THE  EDUCATION
LAW.
  5.  AGENCIES, MUNICIPALITIES, AND PUBLIC AUTHORITIES ARE ENCOURAGED TO
CONSULT WITH AND SEEK ADVICE AND ASSISTANCE  FROM  THE  NEW  YORK  STATE
ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY  CONCERNING POWER PURCHASE
AGREEMENTS.
  6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IN ORDER TO  CONVEY  AN
INTEREST  IN  REAL PROPERTY NECESSARY FOR THE CONSTRUCTION OF FACILITIES
OR THE OPERATION OF EQUIPMENT PROVIDED FOR IN A  POWER  PURCHASE  AGREE-
MENT,  ANY  AGENCY,  MUNICIPALITY  OR  PUBLIC AUTHORITY MAY ENTER INTO A
LEASE OR LICENSE OF SUCH REAL PROPERTY TO WHICH IT HOLDS TITLE OR  WHICH
IS  UNDER  ITS  ADMINISTRATIVE  JURISDICTION  AS  IS  NECESSARY FOR SUCH
CONSTRUCTION OR OPERATION, WITH A POWER PURCHASE AGREEMENT, FOR THE SAME
LENGTH OF TIME AS THE TERM OF SUCH POWER PURCHASE AGREEMENT, AND ON SUCH
TERMS AND CONDITIONS AS MAY BE AGREEABLE TO  THE  PARTIES  THERETO,  AND
NOTWITHSTANDING  THAT SUCH REAL PROPERTY MAY REMAIN USEFUL TO SUCH AGEN-
CY, MUNICIPALITY OR PUBLIC AUTHORITY FOR THE PURPOSE FOR WHICH SUCH REAL
PROPERTY WAS ORIGINALLY ACQUIRED OR DEVOTED OR FOR WHICH SUCH REAL PROP-
ERTY IS BEING USED.
  7. SECTIONS ONE HUNDRED THREE AND ONE HUNDRED NINE-B  OF  THE  GENERAL
MUNICIPAL  LAW  SHALL APPLY TO THE PROCUREMENT OR ACQUISITION OF A POWER
PURCHASE AGREEMENT AS CONTEMPLATED BY THIS SECTION.
  8. THE COMMISSIONER OF EDUCATION SHALL NOT BE REQUIRED  TO  DEVELOP  A
FORM  OF PRE-APPROVED POWER PURCHASE AGREEMENT OR BE REQUIRED TO APPROVE
ANY POWER PURCHASE AGREEMENTS TO BE EXECUTED BY A  PARTY  IN  CONNECTION
WITH THIS, BUT IS AUTHORIZED TO DEVELOP RULES AND REGULATIONS CONCERNING
THE  PROCESS  FOR  ISSUING  BUILDING  PERMITS  AND OPERATIONAL SAFETY IN
RELATION TO THE INSTALLATION AND OPERATION OF ENERGY TECHNOLOGIES ELIGI-
BLE  FOR  NET  ENERGY  METERING  PURSUANT  TO  SECTION  SIXTY-SIX-J   OR
SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  S 3. This act shall take effect immediately.

2015-S3613A (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Energy Law
Laws Affected:: Amd §9-102, add §9-104, Energy L
Versions Introduced in 2013-2014 Legislative Session:: S6958

2015-S3613A (ACTIVE) - Summary

Relates to "power purchase agreements" concerning energy technologies eligible for net metering.

2015-S3613A (ACTIVE) - Bill Text download pdf

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

                                 3613--A
    Cal. No. 456

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 13, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  reported  favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN  ACT  to  amend  the  energy  law, in relation to energy technologies
  eligible for net metering

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

  Section  1. Section 9-102 of the energy law is amended by adding a new
subdivision 5 to read as follows:
  5. "POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT  IN  CONNECTION  WITH
THE  INSTALLATION,  MAINTENANCE  AND  MANAGEMENT OF AN ENERGY TECHNOLOGY
ELIGIBLE FOR NET ENERGY METERING  PURSUANT  TO  SECTION  SIXTY-SIX-J  OR
SIXTY-SIX-L OF THE PUBLIC SERVICE LAW, WHERE A THIRD PARTY OWNER (NON-A-
GENCY  OR  NON-MUNICIPAL  OWNER)  GENERATES ELECTRICITY FROM SUCH ENERGY
TECHNOLOGY (WHETHER OR NOT SUCH ENERGY  TECHNOLOGY  IS  LOCATED  AT  THE
POINT  OF  CONSUMPTION) AND SELLS THE RESULTING ELECTRICITY TO AN AGENCY
OR MUNICIPALITY FOR A PRICE, VOLUME AND DURATION AS  SET  FORTH  IN  THE
AGREEMENT.
  S  2.  The energy law is amended by adding a new section 9-104 to read
as follows:
  S 9-104. POWER  PURCHASE  AGREEMENTS.  1.  NOTWITHSTANDING  ANY  OTHER
PROVISION  OF  LAW,  ANY  SCHOOL DISTRICT OR BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES, IN ADDITION TO EXISTING POWERS, IS AUTHORIZED TO  ENTER
INTO  POWER  PURCHASE  AGREEMENTS,  OF UP TO THIRTY-FIVE YEARS DURATION,
PROVIDED THAT THE DURATION OF ANY SUCH CONTRACT  SHALL  NOT  EXCEED  THE
REASONABLY  EXPECTED  USEFUL  LIFE OF THE ENERGY FACILITIES OR EQUIPMENT
SUBJECT TO SUCH AGREEMENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00536-09-5

S. 3613--A                          2

  2. ANY PAYMENT DUE FROM A SCHOOL DISTRICT OR A  BOARD  OF  COOPERATIVE
EDUCATIONAL  SERVICES UNDER A POWER PURCHASE AGREEMENT SHALL BE AN ORDI-
NARY CONTINGENT EXPENSE.
  3. SCHOOL DISTRICTS AND BOARDS OF COOPERATIVE EDUCATIONAL SERVICES ARE
ENCOURAGED  TO  CONSULT WITH AND SEEK ADVICE AND ASSISTANCE FROM THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY  CONCERNING  POWER
PURCHASE AGREEMENTS.
  4.  IN  ORDER TO CONVEY AN INTEREST IN REAL PROPERTY NECESSARY FOR THE
CONSTRUCTION OF FACILITIES OR THE OPERATION OF EQUIPMENT PROVIDED FOR IN
A POWER PURCHASE AGREEMENT, ANY SCHOOL DISTRICT OR BOARD OF  COOPERATIVE
EDUCATIONAL  SERVICES  MAY  ENTER  INTO  A LEASE OR LICENSE OF SUCH REAL
PROPERTY TO WHICH IT HOLDS TITLE OR WHICH IS  UNDER  ITS  ADMINISTRATIVE
JURISDICTION  AS IS NECESSARY FOR SUCH CONSTRUCTION OR OPERATION, WITH A
POWER PURCHASE AGREEMENT, FOR THE SAME LENGTH OF TIME  AS  THE  TERM  OF
SUCH  POWER  PURCHASE  AGREEMENT, ON SUCH TERMS AND CONDITIONS AS MAY BE
AGREEABLE TO THE PARTIES THERETO, AND SUBJECT TO THE VOTER REFERENDUM IN
SCHOOL DISTRICTS IN WHICH THE VOTERS  APPROVE  THE  BUDGET  PURSUANT  TO
ARTICLE FORTY-ONE OF THE EDUCATION LAW.
  5.  SECTIONS  ONE  HUNDRED THREE AND ONE HUNDRED NINE-B OF THE GENERAL
MUNICIPAL LAW SHALL APPLY TO THE PROCUREMENT OR ACQUISITION OF  A  POWER
PURCHASE AGREEMENT AS CONTEMPLATED BY THIS SECTION.
  6.  THE  COMMISSIONER  OF EDUCATION IS AUTHORIZED TO DEVELOP RULES AND
REGULATIONS CONCERNING THE PROCESS  FOR  ISSUING  BUILDING  PERMITS  AND
OPERATIONAL  SAFETY  IN  RELATION  TO  THE INSTALLATION AND OPERATION OF
ENERGY TECHNOLOGIES ELIGIBLE FOR NET ENERGY METERING PURSUANT TO SECTION
SIXTY-SIX-J OR SIXTY-SIX-L OF THE PUBLIC SERVICE LAW.
  S 3. This act shall take effect immediately.

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Senate Bill S3613A

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

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Votes

Apr 28, 2015 - Energy And Telecommunications Committee Vote

Energy And Telecommunications Committee Vote: Apr 28, 2015

Bill Amendments

2015-S3613 - Details

2015-S3613 - Summary

2015-S3613 - Sponsor Memo

2015-S3613 - Bill Text download pdf

2015-S3613A (ACTIVE) - Details

2015-S3613A (ACTIVE) - Summary

2015-S3613A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Joseph A. Griffo

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

Votes

Bill Amendments

2015-S3613 - Details

2015-S3613 - Summary

2015-S3613 - Sponsor Memo

2015-S3613 - Bill Text download pdf

2015-S3613A (ACTIVE) - Details

2015-S3613A (ACTIVE) - Summary

2015-S3613A (ACTIVE) - Bill Text download pdf

Comments