S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5942--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 8, 2017
                                ___________
 
 Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations  --  recommitted  to  the Committee on Energy and Telecommuni-
   cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  public  service  law,  in relation to long-term
   contracts for renewable energy
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The public service law is amended by adding a new section
 66-p to read as follows:
   § 66-P. LONG-TERM CONTRACTS FOR RENEWABLE ENERGY. 1. DEFINITIONS.   AS
 USED  IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A) "ELIGIBLE RESOURCE" MEANS A SOURCE OF ELECTRICAL GENERATION THAT:
   (I) GENERATES POWER THAT IS WITHIN OR DELIVERED TO THE CONTROL  REGION
 OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR;
   (II) IS A RENEWABLE ENERGY RESOURCE; AND
   (III) DOES NOT CURRENTLY HAVE A LONG-TERM CONTRACT WITH THE STATE.
   (B)  "RENEWABLE  ENERGY  RESOURCE"  SHALL HAVE THE SAME MEANING AS SET
 FORTH IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW.
   (C) "RENEWABLE ENERGY CREDIT" MEANS A TRADABLE INSTRUMENT THAT REPRES-
 ENTS AN AMOUNT OF  ELECTRICITY  GENERATED  FROM  ELIGIBLE  RESOURCES  OR
 RENEWABLE ENERGY RESOURCES.
   (D)  "LONG-TERM  CONTRACT"  MEANS  A CONTRACT WITH AN ELECTRIC AND GAS
 CORPORATION FOR A PERIOD OF UP TO TWENTY YEARS.
   2. COMMISSION AUTHORITY. THE COMMISSION MAY DIRECT  ELECTRIC  AND  GAS
 CORPORATIONS  TO ENTER INTO LONG-TERM CONTRACTS FOR ENERGY, CAPACITY AND
 RENEWABLE ENERGY CREDITS WITH ELIGIBLE  RESOURCES.  AT  A  MINIMUM,  THE
 COMMISSION  SHALL PROCURE TWO PERCENT OF THE STATE'S ANNUAL RETAIL ELEC-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02548-02-8

 S. 5942--A                          2
 
 TRICITY LOAD BY TWO THOUSAND NINETEEN,  FOUR  PERCENT  BY  TWO  THOUSAND
 TWENTY-ONE, AND SIX PERCENT BY TWO THOUSAND TWENTY-THREE.
   3.  PRIORITY OF LONG-TERM CONTRACTS. IN SELECTING ENERGY, CAPACITY AND
 RENEWABLE ENERGY CREDITS FOR CONTRACTING PURSUANT TO SUBDIVISION TWO  OF
 THIS  SECTION,  THE COMMISSION SHALL PRIORITIZE LONG-TERM CONTRACTS WITH
 ELIGIBLE RESOURCES THAT THE COMMISSION DETERMINES WILL  MAXIMIZE  FINAN-
 CIAL BENEFITS TO ELECTRICITY CUSTOMERS, PROVIDE A HEDGE AGAINST VOLATILE
 FOSSIL FUEL PRICES, AND CREATE OR MAINTAIN PROPERTY TAXES AND EMPLOYMENT
 IN THE STATE OF NEW YORK.
   4. CONTRACT TERM. A CONTRACT ENTERED INTO PURSUANT TO THIS SECTION MAY
 NOT BE FOR A TERM OF MORE THAN TWENTY YEARS, UNLESS THE COMMISSION FINDS
 A  CONTRACT  FOR A LONGER TERM WOULD PROVIDE SIGNIFICANTLY GREATER RATE-
 PAYER BENEFITS.
   5. COMPETITIVE SOLICITATION  PROCESS  AND  CONTRACT  NEGOTIATION.  THE
 COMMISSION  SHALL  ESTABLISH A SCHEDULE FOR ANNUAL COMPETITIVE SOLICITA-
 TIONS FOR LONG-TERM CONTRACTS PURSUANT TO THIS  SECTION.  THIS  SCHEDULE
 MUST  INCLUDE A TIMELINE FOR NEGOTIATION, COMMISSION DECISION MAKING AND
 CONTRACT CLOSING.
   6. DISPOSITION OF RESOURCES. AN ELECTRIC  AND  GAS  CORPORATION  SHALL
 SELL  ENERGY,  CAPACITY  OR  OTHER  PRODUCTS  PURCHASED PURSUANT TO THIS
 SECTION OR TAKE OTHER ACTION RELATIVE TO SUCH ENERGY, CAPACITY OR  OTHER
 PRODUCTS AS DIRECTED BY THE COMMISSION.
   7.  COST  RECOVERY.  THE  COMMISSION  SHALL  ENSURE THAT ALL COSTS AND
 DIRECT FINANCIAL BENEFITS ASSOCIATED WITH CONTRACTS ENTERED  INTO  UNDER
 THIS  SECTION ARE ALLOCATED TO RATEPAYERS. A PRICE DIFFERENTIAL EXISTING
 AT ANY TIME DURING THE TERM OF THE CONTRACT BETWEEN THE  CONTRACT  PRICE
 AND THE PREVAILING MARKET PRICE AT WHICH THE ENERGY, CAPACITY AND RENEW-
 ABLE  ENERGY  CREDITS  ARE  SOLD  OR  ANY  GAINS  OR LOSSES DERIVED FROM
 CONTRACTS FOR DIFFERENCES MUST BE REFLECTED IN THE  AMOUNTS  CHARGED  TO
 RATEPAYERS AND MAY NOT BE CONSIDERED IMPRUDENT.
   8.  CONTRACT  PAYMENTS.  LONG-TERM  CONTRACTS ENTERED INTO PURSUANT TO
 THIS SECTION  MUST  PROVIDE  THAT  PAYMENTS  WILL  BE  MADE  ONLY  AFTER
 CONTRACTED  AMOUNTS  OF  ENERGY,  CAPACITY  OR  OTHER PRODUCTS HAVE BEEN
 PROVIDED.
   9. CUSTOMER BENEFITS. THE COMMISSIONER MAY  DIRECT  ELECTRIC  AND  GAS
 CORPORATIONS  TO  ENTER INTO CONTRACTS UNDER THIS SECTION ONLY AS AGENTS
 FOR THEIR CUSTOMERS. THE COMMISSION SHALL ADOPT RULES TO ENSURE THAT  TO
 THE  EXTENT  THE  BENEFITS  TO  RATEPAYERS  OF  A LONG-TERM CONTRACT ARE
 PROJECTED TO OCCUR IN THE LATER YEARS OF  THE  CONTRACT  TERM,  ADEQUATE
 FINANCIAL  SECURITY IS IN PLACE SO THAT IT IS REASONABLY LIKELY RATEPAY-
 ERS WILL OBTAIN THE PROJECTED BENEFITS OF THE LONG-TERM CONTRACT.
   10. RULES AND REGULATIONS. THE COMMISSION SHALL ADOPT RULES AND  REGU-
 LATIONS  TO  IMPLEMENT  THIS SECTION. IN ADOPTING RULES AND REGULATIONS,
 THE COMMISSION SHALL CONSIDER THE FINANCIAL IMPLICATIONS OF THIS SECTION
 ON ELECTRIC AND GAS CORPORATIONS.
   § 2. This act shall take effect immediately.