Senate Bill S5872

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5872
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen. METZGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to amend the public service law and the public authorities law,
   in relation to establishing a renewable electricity compliance program
   and renewable energy procurements

   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. ESTABLISHMENT OF A RENEWABLE ELECTRICITY  COMPLIANCE  PROGRAM.
 1. AS USED IN THIS SECTION:
   (A)  "LOAD  SERVING  ENTITY"  MEANS  ANY ENTITY THAT SECURES ENERGY TO
 SERVE THE ELECTRICAL ENERGY REQUIREMENTS OF  END-USE  CUSTOMERS  IN  NEW
 YORK  STATE  AND  INCLUDES  THE  DISTRIBUTION COMPANIES, ENERGY SERVICES
 COMPANIES, MUNICIPAL UTILITIES, THE LONG ISLAND POWER AUTHORITY, AND THE
 NEW YORK POWER AUTHORITY.
   (B) "QUALIFIED RENEWABLE ENERGY SYSTEMS" MEANS SYSTEMS  THAT  GENERATE
 ELECTRICITY OR THERMAL ENERGY THROUGH USE OF THE FOLLOWING TECHNOLOGIES:
 PHOTOVOLTAICS,  WIND,  HYDROELECTRIC,  GEOTHERMAL  ELECTRIC,  GEOTHERMAL
 GROUND SOURCE HEAT, SOLAR THERMAL,  TIDAL  ENERGY,  WAVE  ENERGY,  OCEAN
 THERMAL,  OR  FUEL  CELLS WHICH DO NOT UTILIZE A FOSSIL FUEL RESOURCE IN
 THE PROCESS OF GENERATING ELECTRICITY, AND  IS  EITHER  LOCATED  IN  THE
 STATE  OF NEW YORK OR LOCATED IN A CONTROL AREA ADJACENT TO THE NEW YORK
 INDEPENDENT SYSTEM OPERATOR CONTROL AREA AND ACCOMPANIED  BY  DOCUMENTA-
 TION OF A CONTRACT PATH BETWEEN THE GENERATOR AND THE IN-STATE PURCHASER
 THAT INCLUDES TRANSMISSION RIGHTS.
   (C)  "RENEWABLE  ENERGY CREDITS" OR "RECS" REPRESENT THE ENVIRONMENTAL
 ATTRIBUTES OF THE ELECTRICITY PRODUCED FROM QUALIFIED  RENEWABLE  ENERGY
 PROJECTS AND CAN BE SOLD SEPARATELY FROM THE ELECTRICITY ITSELF. ONE REC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11692-01-9
              

 S. 5872                             2
 
 IS GENERATED FOR EVERY MEGAWATT HOUR OF ELECTRICITY PRODUCED BY A QUALI-
 FIED RENEWABLE ENERGY SYSTEM.
   2.  NO  LATER  THAN JANUARY FIRST, TWO THOUSAND TWENTY, THE COMMISSION
 SHALL ESTABLISH A PROGRAM TO REQUIRE THAT A MINIMUM OF  SEVENTY  PERCENT
 OF  THE  ELECTRICITY  SECURED  BY  LOAD SERVING ENTITIES FOR ALL END-USE
 CUSTOMERS IN NEW YORK STATE IN TWO THOUSAND THIRTY SHALL BE GENERATED BY
 RENEWABLE ENERGY SYSTEMS.
   3. THE COMMISSION SHALL  SET  BIENNIAL  MINIMUM  PERCENTAGES  FOR  THE
 PROGRAM PURSUANT TO THE FOLLOWING SCHEDULE, AND BY DECEMBER THIRTY-FIRST
 OF  THE  YEAR  SPECIFIED  ALL LOAD-SERVING ENTITIES MUST COMPLY WITH THE
 BELOW PERCENTAGES OF THE ELECTRICITY THEY SECURE FOR END-USE CUSTOMERS:
   (A) 2020: 30% FROM RENEWABLE ENERGY SYSTEMS;
   (B) 2022: 38% FROM RENEWABLE ENERGY SYSTEMS;
   (C) 2024: 46% FROM RENEWABLE ENERGY SYSTEMS;
   (D) 2026: 54% FROM RENEWABLE ENERGY SYSTEMS;
   (E) 2028: 62% FROM RENEWABLE ENERGY SYSTEMS; AND
   (F) 2030: 70% FROM RENEWABLE ENERGY SYSTEMS.
   4. SPECIFICALLY, ALL LOAD SERVING ENTITIES ARE REQUIRED TO COMPLY WITH
 THE ABOVE PERCENTAGES BY PURCHASING RECS, EITHER FROM QUALIFIED  RENEWA-
 BLE  ENERGY  PROJECTS  DIRECTLY OR FROM THE NEW YORK ENERGY RESEARCH AND
 DEVELOPMENT AUTHORITY THROUGH  THEIR  ANNUAL  SALES  OF  THE  RECS  THEY
 ACQUIRE  FROM  QUALIFIED  RENEWABLE ENERGY SYSTEMS VIA NET-METERING, THE
 VALUE  OF  DISTRIBUTED  ENERGY  RESOURCES  PROGRAM,  OR  LONG-TERM   REC
 CONTRACTS.
   5. IF A LOAD SERVING ENTITY FAILS TO COMPLY WITH THE ABOVE PERCENTAGES
 OF  THE ELECTRICITY THEY SECURE FOR END-USE CUSTOMERS COMING FROM QUALI-
 FIED RENEWABLE ENERGY PROJECTS IN ANY GIVEN YEAR, THEY WILL BE  REQUIRED
 TO  PAY  AN  ALTERNATIVE  COMPLIANCE  PAYMENT, WHICH SHALL BE SET AT ONE
 HUNDRED TWENTY-FIVE PERCENT OF  THE  PREVIOUS  YEAR'S  NEW  YORK  ENERGY
 RESEARCH  AND  DEVELOPMENT  AUTHORITY  REC  SALE PRICE MULTIPLIED BY THE
 NUMBER OF RECS THEY ARE SHORT OF THE REQUIREMENT. LOAD SERVING  ENTITIES
 SHALL  BE  PERMITTED  TO  USE  ANY  EXTRA RECS THEY PURCHASE ABOVE THEIR
 REQUIREMENT IN A GIVEN YEAR FOR MEETING THEIR COMPLIANCE REQUIREMENT  IN
 THE SUBSEQUENT TWO YEARS.
   6. AS PART OF THIS PROGRAM, THE COMMISSION SHALL ALSO:
   (A)  SET  A  MINIMUM REQUIREMENT OF SIX THOUSAND MEGAWATTS ALTERNATING
 CURRENT OF DISTRIBUTED SOLAR TO BE IN COMMERCIAL OPERATION IN THE  STATE
 BY  DECEMBER  THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE, AND SHALL CONSIDER
 THIS REQUIREMENT IN ALL DECISIONS ON NET-METERING, THE VALUE OF DISTRIB-
 UTED ENERGY RESOURCES, AND ANY OTHER RELATED MATTERS.
   (B) SET A MINIMUM REQUIREMENT OF NINE THOUSAND  MEGAWATTS  ALTERNATING
 CURRENT OF OFFSHORE WIND TO BE IN COMMERCIAL OPERATION SERVING THE STATE
 BY TWO THOUSAND THIRTY-FIVE.
   (C)  SET  THE REQUIREMENT FOR ONE HUNDRED EIGHTY-FIVE TRILLION BRITISH
 THERMAL UNITS OF CUSTOMER-LEVEL ENERGY REDUCTION STATE WIDE BY TWO THOU-
 SAND TWENTY-FIVE, WITH THIRTY-ONE TRILLION BRITISH THERMAL UNITS  COMING
 FROM AN INCREASE IN UTILITY-LEVERAGED ENERGY EFFICIENCY INVESTMENTS.
   §  2.  The  public  authorities law is amended by adding a new section
 1884 to read as follows:
   § 1884. ESTABLISHMENT OF RENEWABLE ENERGY PROCUREMENTS.  1.  NO  LATER
 THAN JANUARY FIRST, TWO THOUSAND TWENTY, THE AUTHORITY SHALL ESTABLISH A
 PROGRAM  TO  CONDUCT ANNUAL PROCUREMENTS THROUGH TWO THOUSAND THIRTY FOR
 LARGE SCALE SOLAR AND ON-SHORE WIND PROJECTS  TO  ENTER  INTO  LONG-TERM
 RENEWABLE  ENERGY  CREDIT  CONTRACTS,  INDEXED  RENEWABLE  ENERGY CREDIT
 CONTRACTS, OR BUNDLED CONTRACTS, AND ALSO  PUBLISH  A  SCHEDULE  OF  THE

 S. 5872                             3
 
 PLANNED  PROCUREMENT  AMOUNTS  AND THE TIMING FOR THE COMING THREE YEARS
 UPDATED ANNUALLY.
   2.  FOR  THE PURPOSES OF THIS SECTION, "RENEWABLE ENERGY CREDIT" SHALL
 BE DEFINED AS IN SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW.
   § 3. This act shall take effect immediately.