S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2955
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 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; and providing for the repeal of such provisions  upon
   expiration thereof
 
   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 2017".
   § 2. The public service law is amended by adding a new section 66-o to
 read as follows:
   §  66-O.  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02483-01-7
              

 A. 2955                             2
 
   (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.
   (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

 A. 2955                             3
 
   2019                   0.05%
   2020                   0.13%
   2021                   0.15%
   2022                   0.17%
   2023                   0.20%
   2024                   0.23%
   2025                   0.27%
   2026                   0.32%
   2027                   0.38%
   2028                   0.44%
   2029                   0.52%
   2030                   0.61%
   2031                   0.72%
   2032                   0.85%
 
   (B) IF BY THE YEAR TWO THOUSAND THIRTY-FOUR 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.

 A. 2955                             4
 
   3. (A) IN THE EVENT THAT RETAIL ELECTRIC SUPPLIERS CANNOT  MEET  THEIR
 OBLIGATIONS  ESTABLISHED  IN SUBDIVISION TWO OF THIS SECTION, THEY SHALL
 BE PERMITTED TO DISCHARGE SUCH  OBLIGATIONS  BY  MAKING  AN  ALTERNATIVE
 COMPLIANCE PAYMENT IN AN AMOUNT ESTABLISHED BY THE COMMISSION, PROVIDED,
 HOWEVER,  THAT  THE  COMMISSION  SHALL  SET SUCH PAYMENT AT A LEVEL THAT
 SHALL STIMULATE THE DEVELOPMENT OF NEW QUALIFIED RENEWABLE ENERGY GENER-
 ATION NECESSARY TO ACHIEVE THE OBLIGATIONS  ESTABLISHED  IN  SUBDIVISION
 TWO OF THIS SECTION.
   (B)  NO LATER THAN DECEMBER FIRST, TWO THOUSAND TWENTY, THE COMMISSION
 SHALL ESTABLISH AN ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE  THROUGH  THE
 YEAR  TWO  THOUSAND  TWENTY-ONE.  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 TWENTY, THE COMMIS-
 SION 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 TWENTY-ONE, 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

 A. 2955                             5
 
 THE LOWEST REASONABLE COST; AND (III) SUCH  PROCUREMENT  PLAN  SATISFIES
 OTHER  CRITERIA AS MAY BE ESTABLISHED IN THE APPROVED SOLICITATION PLAN.
 IF THE COMMISSION DOES NOT APPROVE, REJECT OR  MODIFY  THE  DISTRIBUTION
 COMPANY'S  APPLICATION  WITHIN SIXTY DAYS, THE PROCUREMENT PLAN SHALL BE
 DEEMED APPROVED.
   (D) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE, 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 TWENTY-ONE, THE COMMIS-
 SION 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 TWENTY-ONE,  THE  COMMIS-
 SION  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
 RENEWABLE ENERGY GENERATION, FOR THE PURPOSE OF  ACHIEVING  SUCH  COMPA-
 NIES'  OBLIGATIONS  PERTAINING  TO  RECS ASSOCIATED WITH SUCH GENERATION
 ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION. SUCH  TERMS  AND  CONDI-
 TIONS  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 TWENTY-ONE 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-THREE, AND NO
 LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH  THE  YEAR  TWO
 THOUSAND  THIRTY-FOUR,  THE  COMMISSION  SHALL  REPORT  TO THE GOVERNOR,
 SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY, THE TEMPO-

 A. 2955                             6
 
 RARY PRESIDENT OF THE SENATE, THE MAJORITY LEADER  OF  THE  SENATE,  THE
 MINORITY  LEADER OF THE SENATE, CHAIRS OF THE SENATE AND ASSEMBLY ENERGY
 COMMITTEES, AND THE RANKING MINORITY MEMBERS OF THE SENATE AND  ASSEMBLY
 ENERGY COMMITTEES, THE CHAIR OF THE RENEWABLE ENERGY SUBCOMMITTEE IN THE
 ASSEMBLY, 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.
   § 3. Section 1005 of the public authorities law is amended by adding a
 new subdivision 26 to read as follows:
   26.  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. 2955                             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
   2019                          0.25%
   2020                          0.40%
   2021                          0.55%
   2022                          0.70%

 A. 2955                             8
 
   2023                          0.90%
   2024                          1.10%
   2025                          1.30%
   2026                          1.50%
   2027                          1.75%
   2028                          2.00%
   2029                          2.50%
   2030                          3.00%
   2031                          3.50%
   2032                          4.50%
   (II)  IF  BY  THE YEAR TWO THOUSAND THIRTY-FOUR NEW YORK STATE HAS NOT
 MET ITS GOAL OF THIRTY-FIVE PERCENT ELECTRIC ENERGY FROM RENEWABLE ENER-
 GY SOURCES, THE PROGRAM ESTABLISHED IN SECTION SIXTY-SIX-O 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-O 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  TWENTY-ONE,  THE
 AUTHORITY  SHALL  SUBMIT  TO  THE INDEPENDENT AUTHORITIES BUDGET OFFICE,
 GOVERNOR, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE  ASSEMBLY,

 A. 2955                             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  TWENTY-ONE,  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 PLAN FOR THE ACHIEVEMENT OF ITS OBLIGATION PERTAINING  TO
 THE PROCUREMENT OF RECS ASSOCIATED WITH SMALL RETAIL DISTRIBUTED CUSTOM-
 ER-SIDED  RENEWABLE ENERGY GENERATION ESTABLISHED IN PARAGRAPH B OF THIS
 SUBDIVISION.
   D. (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-THREE, AND  NO
 LATER  THAN  JANUARY  FIRST OF EACH YEAR THEREAFTER THROUGH THE YEAR TWO
 THOUSAND THIRTY-FOUR, 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. 2955                            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.
   § 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:
   § 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. 2955                            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
 2019                     0.25%
 2020                     0.40%
 2021                     0.55%
 2022                     0.70%
 2023                     0.90%
 2024                     1.10%
 2025                     1.30%
 2026                     1.50%
 2027                     1.75%
 2028                     2.00%
 2029                     2.50%
 2030                     3.00%

 A. 2955                            12
 
 2031                     3.50%
 2032                     4.50%
   (B) IF BY THE YEAR TWO THOUSAND THIRTY-FOUR 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-O  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-O 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 TWENTY-ONE, 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. 2955                            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 TWENTY-ONE, 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,  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 RENEWABLE ENERGY GENERATION ESTABLISHED IN THIS SUBDIVISION.
   (K) (I) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-THREE, AND NO
 LATER THAN JANUARY FIRST OF EACH YEAR THEREAFTER THROUGH  THE  YEAR  TWO
 THOUSAND  THIRTY-FOUR,  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. 2955                            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.
   § 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.
   §  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.