The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    105
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A. QUART, ROZIC -- read once and referred to the
   Committee on Energy
 
 AN ACT to amend the public service law, in relation  to  establishing  a
   renewable portfolio standard
 
   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  article
 12 to read as follows:
                                ARTICLE 12
                       RENEWABLE PORTFOLIO STANDARD
 SECTION 250. PURPOSE AND SCOPE.
         251. DEFINITIONS.
         252. AMOUNT OF RENEWABLE ENERGY REQUIRED.
         253. ENERGY  THAT QUALIFIES FOR A SOLAR RENEWABLE ENERGY CERTIF-
                ICATE; REGISTRATION REQUIREMENT.
         254. USING RENEWABLE ENERGY  CERTIFICATES  AND  SOLAR  RENEWABLE
                ENERGY  CERTIFICATES  FOR  RENEWABLE  PORTFOLIO  STANDARD
                COMPLIANCE.
         255. ISSUANCE OF RENEWABLE ENERGY CERTIFICATES AND SOLAR RENEWA-
                BLE ENERGY CERTIFICATES.
         256. ALTERNATIVE COMPLIANCE PAYMENTS.
         257. DEMONSTRATING COMPLIANCE, REPORTING AND RECORDKEEPING.
         258. ENFORCEMENT.
   § 250. PURPOSE AND SCOPE. 1.  EACH  ELECTRIC  CORPORATION  THAT  SELLS
 ELECTRICITY  TO RETAIL CUSTOMERS IN NEW YORK STATE, SHALL INCLUDE IN ITS
 ELECTRIC ENERGY PORTFOLIO ELECTRICITY GENERATED  FROM  RENEWABLE  ENERGY
 SOURCES. THIS ARTICLE IS DESIGNED TO ENCOURAGE THE DEVELOPMENT OF RENEW-
 ABLE  SOURCES  OF  ELECTRICITY  AND  NEW, CLEANER GENERATION TECHNOLOGY;
 MINIMIZE THE ENVIRONMENTAL IMPACT OF AIR POLLUTANT EMISSIONS FROM  ELEC-
 TRIC GENERATION; REDUCE POSSIBLE TRANSPORT OF EMISSIONS AND MINIMIZE ANY

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01359-01-1

 A. 105                              2
 
 ADVERSE ENVIRONMENTAL IMPACT FROM DEREGULATION OF ENERGY GENERATION; AND
 SUPPORT THE RELIABILITY OF THE SUPPLY OF ELECTRICITY IN THE STATE.
   2.  THIS ARTICLE GOVERNS THE RETAIL ELECTRICITY SALES OF EACH ELECTRIC
 CORPORATION.   THIS ARTICLE DOES NOT  GOVERN  INSTALLED  CAPACITY  OBLI-
 GATIONS.
   3.  THIS  ARTICLE DOES NOT APPLY TO A PRIVATE OR GOVERNMENT AGGREGATOR
 THAT CONTRACTS FOR  ELECTRIC  GENERATION  SERVICE  OR  ELECTRIC  RELATED
 SERVICES,  EITHER  SEPARATELY  OR  BUNDLED, FOR ITS OWN FACILITIES OR ON
 BEHALF OF OTHER BUSINESS AND RESIDENTIAL CUSTOMERS IN THIS  STATE.  THIS
 ARTICLE  DOES NOT APPLY TO AN ENERGY AGENT. AN ELECTRIC CORPORATION THAT
 IS CONTRACTUALLY OBLIGATED TO SELL ELECTRICITY TO  AN  AGGREGATOR  SHALL
 COMPLY  WITH THIS ARTICLE BY INCLUDING THE AMOUNT SOLD TO THE AGGREGATOR
 AS PART OF ITS ENERGY PORTFOLIO.
   § 251. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHER-
 WISE REQUIRES, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ALTERNATIVE COMPLIANCE PAYMENT"  MEANS  A  PAYMENT  OF  A  CERTAIN
 DOLLAR  AMOUNT  PER  MEGAWATT  HOUR,  WHICH  AN ELECTRIC CORPORATION MAY
 SUBMIT TO COMPLY WITH THE RENEWABLE ENERGY REQUIREMENT SET FORTH IN THIS
 ARTICLE.
   2. "ATTRIBUTE" MEANS  A  CHARACTERISTIC  ASSOCIATED  WITH  ELECTRICITY
 GENERATED  USING  A  PARTICULAR  RENEWABLE  FUEL, SUCH AS ITS GENERATION
 DATE, FACILITY GEOGRAPHIC  LOCATION,  UNIT  VINTAGE,  EMISSIONS  OUTPUT,
 FUEL,  STATE  PROGRAM  ELIGIBILITY,  OR OTHER CHARACTERISTIC THAT CAN BE
 IDENTIFIED, ACCOUNTED, AND TRACKED.
   3. "BIOENERGY CROP" MEANS PLANTS CULTIVATED AND HARVESTED SPECIFICALLY
 FOR USE AS FUEL FOR THE PURPOSE OF GENERATING ELECTRICITY.
   4. "BIOMASS" MEANS ANY ORGANIC MATTER THAT IS AVAILABLE ON A RENEWABLE
 OR RECURRING BASIS (EXCLUDING OLD-GROWTH  TIMBER),  INCLUDING  DEDICATED
 ENERGY CROPS AND TREES, AGRICULTURAL FOOD AND FEED CROP RESIDUES, AQUAT-
 IC  PLANTS, WOOD AND WOOD RESIDUES, ANIMAL WASTES, AND OTHER WASTE MATE-
 RIALS.
   5. "BLACK LIQUOR" MEANS A VISCOUS LIQUID CONTAINING  INORGANIC  CHEMI-
 CALS  AND  ORGANIC MATERIAL SUCH AS LIGNIN AND ALIPHATIC ACIDS, WHICH IS
 SEPARATED FROM WOOD DURING CHEMICAL PULPING.
   6. "ENERGY PORTFOLIO" MEANS ALL OF THE ELECTRICAL ENERGY SUPPLIED BY A
 PARTICULAR ELECTRIC POWER SUPPLIER OR BASIC GENERATION SERVICE  PROVIDER
 TO RETAIL CUSTOMERS IN THE STATE.
   7.  "ENERGY  YEAR"  MEANS  THE  TWELVE  MONTH  PERIOD FROM APRIL FIRST
 THROUGH MARCH THIRTY-FIRST AND SHALL BE NUMBERED ACCORDING TO THE CALEN-
 DAR YEAR IN WHICH IT ENDS.
   8. "FOSSIL FUEL" MEANS NATURAL GAS, PETROLEUM, COAL, OR ANY  FORM,  OF
 SOLID, LIQUID, OR GASEOUS FUEL DERIVED FROM SUCH MATERIAL.
   9.  "FUEL CELL" MEANS AN ELECTROCHEMICAL DEVICE THAT CONVERTS CHEMICAL
 ENERGY IN A HYDROGEN OR HYDROGEN-RICH FUEL  DIRECTLY  INTO  ELECTRICITY,
 WITHOUT COMBUSTION.
   10. "GENERATION ATTRIBUTE TRACKING SYSTEM" MEANS THE ENVIRONMENTAL AND
 EMISSIONS  ATTRIBUTES  TRACKING  SYSTEM  FOR ELECTRIC GENERATION THAT IS
 ADMINISTERED BY NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
 PURSUANT TO SUBDIVISION NINETEEN OF SECTION EIGHTEEN HUNDRED  FIFTY-FOUR
 OF THE PUBLIC AUTHORITIES LAW.
   11.  "GEOTHERMAL  ENERGY"  MEANS  ENERGY GENERATED BY A STEAM TURBINE,
 DRIVEN BY HOT WATER OR STEAM EXTRACTED FROM GEOTHERMAL RESERVOIRS IN THE
 EARTH'S CRUST.
   12. "INSTALLED CAPACITY OBLIGATION" MEANS THE REQUIREMENT FOR AN ELEC-
 TRIC POWER SUPPLIER OR BASIC GENERATION SERVICE PROVIDER  TO  OBTAIN  AN
 AMOUNT  OF  ELECTRICAL  GENERATION  CAPACITY  TO MEET LOAD SERVICE OBLI-

 A. 105                              3
 
 GATIONS UNDER THE RELIABILITY RULES OF THE NEW YORK  INDEPENDENT  SYSTEM
 OPERATOR.  INSTALLED  CAPACITY  INCLUDES THE GENERATION CAPACITY WHICH A
 COMPANY CONSIDERS PART OF ITS  OWN  ELECTRIC  SYSTEM,  INCLUDING  WHOLLY
 OWNED  UNITS,  JOINTLY-OWNED  UNITS,  NON-UTILITY GENERATION (NUGS), AND
 PURCHASES.
   13. "NET METERING" MEANS A SYSTEM OF METERING AND  BILLING  FOR  ELEC-
 TRICITY  IN  WHICH THE ELECTRIC CORPORATION OR THE ELECTRIC DISTRIBUTION
 COMPANY:
   (A) CREDITS A CUSTOMER-GENERATOR AT THE  FULL  RETAIL  RATE  FOR  EACH
 KILOWATT-HOUR  PRODUCED  BY  A  RENEWABLE ENERGY SYSTEM INSTALLED ON THE
 CUSTOMER-GENERATOR'S SIDE OF THE ELECTRIC REVENUE METER, UP TO THE TOTAL
 AMOUNT OF ELECTRICITY USED BY THAT CUSTOMER DURING AN ANNUALIZED PERIOD,
 EXCEPT FOR RESIDENTIAL MICRO COMBINED HEAT  AND  POWER  (MICRO-CHP)  AND
 FUEL CELL SYSTEMS, WHICH ARE CREDITED AT THE AVOIDED COST RATE; AND
   (B)  COMPENSATES  THE  CUSTOMER-GENERATOR AT THE END OF THE ANNUALIZED
 PERIOD FOR ANY REMAINING CREDITS, AT A RATE EQUAL TO THE ELECTRIC CORPO-
 RATION'S AVOIDED COST OF WHOLESALE POWER.
   14. "OLD-GROWTH TIMBER" MEANS WOOD OR PLANT MATTER TAKEN FROM A FOREST
 IN THE LATE SUCCESSIONAL STAGE OF FOREST  DEVELOPMENT,  INCLUDING  PLANT
 MATTER  TAKEN  FROM  THE FOREST FLOOR. LATE SUCCESSIONAL FORESTS CONTAIN
 LIVE AND DEAD TREES OF VARIOUS  SIZES,  SPECIES,  COMPOSITION,  AND  AGE
 CLASS  STRUCTURE.  THE  AGE  AND  STRUCTURE  OF OLD-GROWTH TIMBER VARIES
 SIGNIFICANTLY BY FOREST TYPE AND FROM ONE BIOGEOCLIMATIC ZONE TO  ANOTH-
 ER.
   15.  "QUALIFICATION  LIFE"  MEANS,  FOR  ANY SOLAR ELECTRIC GENERATION
 FACILITY, THE PERIOD BEGINNING ON THE DATE ON  WHICH  THE  FACILITY  WAS
 AUTHORIZED  TO  ENERGIZE AND ENDING ON THE FIRST MARCH THIRTY-FIRST THAT
 IS AT LEAST FIFTEEN YEARS AFTER THE DATE OF AUTHORIZATION TO ENERGIZE. A
 SOLAR FACILITY'S QUALIFICATION LIFE APPLIES TO THE FACILITY ITSELF,  AND
 TO  EACH  PIECE OF EQUIPMENT INCLUDED IN THE FACILITY, REGARDLESS OF ANY
 INTERRUPTION IN THE SOLAR FACILITY'S OPERATION; OR OF  ANY  DISASSEMBLY,
 RELOCATION,  SALE  OR TRANSFER OF ANY PIECE OF EQUIPMENT INCLUDED IN THE
 FACILITY.
   16. "RENEWABLE ENERGY CERTIFICATE" MEANS  A  CERTIFICATE  REPRESENTING
 THE  ENVIRONMENTAL BENEFITS OR ATTRIBUTES OF ONE MEGAWATT-HOUR OF GENER-
 ATION FROM A GENERATING FACILITY THAT  PRODUCES  RENEWABLE  ENERGY,  BUT
 SHALL NOT INCLUDE A SOLAR RENEWABLE ENERGY CERTIFICATE.
   17. "RENEWABLE FUEL" MEANS A FUEL THAT IS NATURALLY REGENERATED OVER A
 SHORT  TIME  SCALE  AND IS EITHER DERIVED FROM THE SUN (SUCH AS THERMAL,
 PHOTOCHEMICAL OR PHOTOELECTRIC), OR FROM OTHER NATURAL SOURCES  SUCH  AS
 WIND,  HYDROPOWER, GEOTHERMAL AND TIDAL ENERGY, OR PHOTOSYNTHETIC ENERGY
 STORED IN BIOMASS. THIS TERM DOES NOT INCLUDE A  FOSSIL  FUEL,  A  WASTE
 PRODUCT  FROM  A  FOSSIL  SOURCE,  OR  A WASTE PRODUCT FROM AN INORGANIC
 SOURCE.
   18. "RESOURCE RECOVERY FACILITY" MEANS A  SOLID  WASTE  FACILITY  THAT
 INCINERATES  SOLID WASTE FOR THE PURPOSES OF PRODUCING ENERGY AND RECOV-
 ERING METALS AND OTHER MATERIALS FOR REUSE.
   19. "SOLAR ALTERNATIVE  COMPLIANCE  PAYMENT"  MEANS  A  PAYMENT  OF  A
 CERTAIN  DOLLAR  AMOUNT PER MEGAWATT-HOUR, WHICH AN ELECTRIC CORPORATION
 MAY SUBMIT TO THE COMMISSION TO COMPLY WITH THE  SOLAR  ELECTRIC  GENER-
 ATION REQUIREMENTS SET FORTH IN THIS ARTICLE.
   20.  "SOLAR  ELECTRIC  GENERATING  FACILITY" OR "SOLAR FACILITY" MEANS
 EQUIPMENT USED TO PRODUCE SOLAR ELECTRIC GENERATION.
   21. "SOLAR ELECTRIC GENERATION" MEANS CREATION OF ELECTRICITY USING  A
 SYSTEM  THAT  EMPLOYS  SOLAR  RADIATION TO PRODUCE ENERGY THAT POWERS AN

 A. 105                              4
 
 ELECTRIC GENERATOR.   SOLAR ELECTRIC  GENERATION  INCLUDES  TECHNOLOGIES
 THAT UTILIZE THE PHOTOVOLTAIC EFFECT.
   22. "SOLAR RENEWABLE ENERGY CERTIFICATE" MEANS A CERTIFICATE ISSUED BY
 THE  COMMISSION  OR  ITS DESIGNEE, WHICH REPRESENTS ONE MEGAWATT-HOUR OF
 SOLAR ENERGY THAT IS GENERATED BY A FACILITY CONNECTED TO  THE  DISTRIB-
 UTION  SYSTEM  IN NEW YORK, AND HAS VALUE BASED UPON, AND DRIVEN BY, THE
 ENERGY MARKET.
   23. "VOLUNTARY CLEAN ELECTRICITY MARKET" OR "VOLUNTARY CLEAN ELECTRIC-
 ITY PROGRAM" MEANS ANY PROGRAM,  SYSTEM,  MARKET  OR  PROCEDURE  THROUGH
 WHICH RETAIL ELECTRIC CUSTOMERS MAY ELECT TO PURCHASE A RENEWABLE ENERGY
 PRODUCT  ON  A  VOLUNTARY BASIS. NEW YORK'S POWER TO CHOOSE PROGRAM IS A
 VOLUNTARY CLEAN ELECTRICITY PROGRAM.
   § 252. AMOUNT OF RENEWABLE ENERGY REQUIRED. 1.  EACH  ELECTRIC  CORPO-
 RATION  THAT  SELLS  ELECTRICITY  TO RETAIL CUSTOMERS IN THE STATE SHALL
 ENSURE THAT THE ELECTRICITY IT SELLS  EACH  ENERGY  YEAR  IN  THE  STATE
 INCLUDES  AT  LEAST  THE  MINIMUM  AMOUNT  OF QUALIFIED RENEWABLE ENERGY
 REQUIRED FOR THAT ENERGY YEAR. THE MINIMUM AMOUNT OF QUALIFIED RENEWABLE
 ENERGY SHALL BE:
   (A) FOR ENERGY YEARS TWO THOUSAND TWENTY-THREE  THROUGH  TWO  THOUSAND
 TWENTY-SEVEN, THIRTY PERCENT;
   (B)  FOR  ENERGY YEAR TWO THOUSAND TWENTY-EIGHT, FORTY PERCENT WITH AT
 LEAST TWO PERCENT DERIVED FROM SOLAR ENERGY.
   2. THE COMMISSION SHALL ADOPT RULES SETTING MINIMUM AMOUNTS OF RENEWA-
 BLE ENERGY REQUIRED FOR ENERGY YEAR TWO THOUSAND  TWENTY-NINE  AND  EACH
 SUBSEQUENT ENERGY YEAR. THE MINIMUM AMOUNTS OF RENEWABLE ENERGY REQUIRED
 SHALL BE NO LOWER THAN THOSE REQUIRED FOR ENERGY YEAR TWO THOUSAND TWEN-
 TY-EIGHT.  THE  COMMISSION, IN CONSULTATION WITH THE DEPARTMENT OF ENVI-
 RONMENTAL CONSERVATION, ELECTRIC  DISTRIBUTION  COMPANIES,  THE  UTILITY
 INTERVENTION  UNIT  OF  THE  DEPARTMENT OF STATE, THE PUBLIC UTILITY LAW
 PROJECT OF NEW YORK, INC., THE SOLAR ENERGY INDUSTRY AND RELEVANT STAKE-
 HOLDERS, SHALL PERIODICALLY CONSIDER  INCREASING  THE  RENEWABLE  ENERGY
 PORTFOLIO  STANDARDS  BEYOND THE MINIMUM AMOUNTS SET FORTH IN THIS CHAP-
 TER, TAKING INTO ACCOUNT THE COST IMPACTS AND PUBLIC  BENEFITS  OF  SUCH
 INCREASES INCLUDING, BUT NOT LIMITED TO:
   (A) REDUCTIONS IN AIR POLLUTION, WATER POLLUTION, LAND DISTURBANCE AND
 GREENHOUSE GAS EMISSIONS;
   (B)  REDUCTIONS IN PEAK DEMAND FOR ELECTRICITY AND NATURAL GAS AND THE
 OVERALL IMPACT ON THE COSTS TO ELECTRICITY AND NATURAL GAS CUSTOMERS;
   (C) INCREASES IN RENEWABLE ENERGY DEVELOPMENT, MANUFACTURING,  INVEST-
 MENT AND JOB CREATION OPPORTUNITIES IN NEW YORK; AND
   (D) REDUCTIONS IN STATE AND NATIONAL DEPENDENCE ON FOSSIL FUELS.
   3. AN ELECTRIC CORPORATION SHALL MEET THE REQUIREMENTS FOR SOLAR ELEC-
 TRIC GENERATION THROUGH:
   (A) RETIREMENT OF SOLAR RENEWABLE ENERGY CERTIFICATES THROUGH A RENEW-
 ABLE  ENERGY  TRADING PROGRAM APPROVED BY THE COMMISSION IN CONSULTATION
 WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION; OR
   (B) SUBMITTAL OF ONE OR MORE SOLAR ALTERNATIVE COMPLIANCE PAYMENTS.
   4. THE FOLLOWING SHALL APPLY TO  THE  TYPE  OF  ENERGY,  AND  TYPE  OF
 DOCUMENTATION, USED FOR COMPLIANCE WITH EACH OF THE REQUIREMENTS IN THIS
 ARTICLE:
   (A)  SOLAR  RENEWABLE  ENERGY  CERTIFICATES  MAY  BE  USED TO MEET ANY
 REQUIREMENT FOR SOLAR ELECTRIC GENERATION;
   (B) RENEWABLE ENERGY CERTIFICATES MAY BE USED TO MEET RENEWABLE ENERGY
 REQUIREMENTS, BUT SHALL NOT BE USED TO MEET  SOLAR  ELECTRIC  GENERATION
 REQUIREMENTS.

 A. 105                              5
 
   5.  AN ELECTRIC CORPORATION SHALL NOT DEMONSTRATE COMPLIANCE WITH THIS
 ARTICLE USING DIRECT SUPPLY OF ANY TYPE OF RENEWABLE ENERGY.
   6.  THE  SAME  RENEWABLE ENERGY SHALL NOT BE USED FOR MORE THAN ONE OF
 THE FOLLOWING:
   (A) CREATION OF A SOLAR RENEWABLE ENERGY CERTIFICATE; OR
   (B) CREATION OF A RENEWABLE ENERGY CERTIFICATE; OR
   (C) CREATION OF A RENEWABLE ENERGY CERTIFICATE, OR OF ANY  OTHER  TYPE
 OF ATTRIBUTE OR CREDIT, UNDER AUTHORITY OTHER THAN THE AUTHORITY GRANTED
 IN  SECTION  TWO  HUNDRED  FIFTY-FIVE  OF  THIS  ARTICLE SUCH AS ANOTHER
 STATE'S RENEWABLE ENERGY STANDARDS OR ANY  VOLUNTARY  CLEAN  ELECTRICITY
 MARKET OR VOLUNTARY CLEAN ELECTRICITY PROGRAM.
   7. EACH MEGAWATT-HOUR OF RETAIL ELECTRICITY SUPPLIED IN NEW YORK BY AN
 ELECTRIC CORPORATION SUBJECT TO THIS ARTICLE CARRIES WITH IT AN ACCOMPA-
 NYING  SOLAR  OBLIGATION.  ALL  ELECTRIC  CORPORATION SOLAR OBLIGATIONS,
 TAKEN TOGETHER, MUST EQUAL THE STATEWIDE SOLAR OBLIGATION SET  FORTH  IN
 SUBDIVISION  NINE  OF  THIS SECTION FOR ENERGY YEAR TWO THOUSAND TWENTY-
 EIGHT.
   8. FOR ELECTRICITY SUPPLIED DURING ENERGY YEAR  TWO  THOUSAND  TWENTY-
 EIGHT,  AN  ELECTRIC CORPORATION SHALL CALCULATE ITS SOLAR OBLIGATION AS
 TWO PERCENT OF THE TOTAL ENERGY GENERATED BY THE ELECTRIC CORPORATION.
   9. THE TOTAL STATEWIDE SOLAR OBLIGATION SHALL BE TWO  PERCENT  OF  THE
 TOTAL ELECTRICITY SOLD TO ALL RETAIL CUSTOMERS.
   § 253. ENERGY THAT QUALIFIES FOR A SOLAR RENEWABLE ENERGY CERTIFICATE;
 REGISTRATION  REQUIREMENT.  1.  TO  BE  ELIGIBLE TO FORM THE BASIS FOR A
 SOLAR RENEWABLE ENERGY CERTIFICATE USABLE FOR COMPLIANCE WITH THIS ARTI-
 CLE, ELECTRICITY SHALL MEET ALL REQUIREMENTS IN THIS SECTION, AS WELL AS
 ALL OTHER APPLICABLE REQUIREMENTS  IN  THIS  CHAPTER.  THE  REGISTRATION
 PROCESS  REQUIRED IN THIS SECTION FOR CONSTRUCTION OF NEW SOLAR ELECTRIC
 GENERATION FACILITIES IS INTENDED  TO  PROVIDE  ADVANCE  NOTICE  TO  THE
 PUBLIC AND THE RENEWABLE ENERGY MARKETS WHEN INCREASES IN SOLAR ELECTRIC
 GENERATION  CAPACITY  IN THE STATE ARE PLANNED. THE REGISTRATION PROCESS
 SHALL BE ADMINISTERED BY THE COMMISSION OR ITS DESIGNEE.
   2. TO BE ELIGIBLE FOR ISSUANCE OF A SOLAR RENEWABLE ENERGY CERTIFICATE
 USABLE FOR COMPLIANCE WITH THIS ARTICLE, ELECTRICITY SHALL:
   (A) MEET THE DEFINITION OF SOLAR ELECTRIC GENERATION  IN  SECTION  TWO
 HUNDRED FIFTY-ONE OF THIS ARTICLE;
   (B) BE GENERATED AT A FACILITY THAT HAS BEEN ISSUED EITHER:
   (I)  FOR INSTALLATIONS WITH A NAMEPLATE GENERATING CAPACITY OF TWENTY-
 FIVE THOUSAND KILOWATTS OR MORE, A CERTIFICATE FROM THE NEW  YORK  STATE
 BOARD  ON  ELECTRIC  GENERATION  SITING  AND THE ENVIRONMENT PURSUANT TO
 ARTICLE TEN OF THIS CHAPTER; OR
   (II) FOR INSTALLATIONS WITH A NAMEPLATE GENERATING  CAPACITY  OF  LESS
 THAN  TWENTY-FIVE  THOUSAND  KILOWATTS,  THE RELEVANT PERMITS OR CERTIF-
 ICATES ISSUED BY THE LOCAL AUTHORITY.
   (C) BE GENERATED DURING THE GENERATING FACILITY'S QUALIFICATION  LIFE.
 SOLAR  ELECTRIC GENERATION PRODUCED AFTER THE END OF A FACILITY'S QUALI-
 FICATION LIFE SHALL NOT BE USED AS THE BASIS FOR A SOLAR RENEWABLE ENER-
 GY CERTIFICATE; AND
   (D) BE GENERATED USING EQUIPMENT THAT MEETS EITHER  OF  THE  FOLLOWING
 CRITERIA:
   (I) THE EQUIPMENT IS NEW; OR
   (II)  THE  EQUIPMENT  WAS  PREVIOUSLY USED IN A SOLAR FACILITY WITH AN
 UNEXPIRED QUALIFICATION LIFE AND ALL OF THE FOLLOWING CRITERIA ARE MET:
   (1) THE PREVIOUS SOLAR FACILITY WAS LOCATED IN NEW YORK;
   (2) THE PREVIOUS SOLAR FACILITY WAS ISSUED EITHER:

 A. 105                              6
 
   (A) FOR INSTALLATIONS WITH A NAMEPLATE GENERATING CAPACITY OF  TWENTY-
 FIVE  THOUSAND  KILOWATTS OR MORE, A CERTIFICATE FROM THE NEW YORK STATE
 BOARD ON ELECTRIC GENERATION SITING  AND  THE  ENVIRONMENT  PURSUANT  TO
 ARTICLE TEN OF THIS CHAPTER; OR
   (B)  FOR  INSTALLATIONS  WITH  A NAMEPLATE GENERATING CAPACITY OF LESS
 THAN TWENTY-FIVE THOUSAND KILOWATTS, THE  RELEVANT  PERMITS  OR  CERTIF-
 ICATES ISSUED BY THE LOCAL AUTHORITY.
   (3)  THERE  ARE  AT LEAST TWELVE FULL MONTHS LEFT IN THE QUALIFICATION
 LIFE OF THE PREVIOUS SOLAR FACILITY; AND
   (4) ANY SALE OR OTHER TRANSFER OF THE EQUIPMENT DURING THE  QUALIFICA-
 TION  LIFE  OF  THE PREVIOUS SOLAR FACILITY IS RECORDED WITH THE COMMIS-
 SION.
   3. TO COMPLY WITH PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION,  A
 SOLAR ELECTRIC GENERATING FACILITY:
   (A)  FOR INSTALLATIONS WITH A NAMEPLATE GENERATING CAPACITY OF TWENTY-
 FIVE THOUSAND KILOWATTS OR MORE, THAT WAS NOT ISSUED A CERTIFICATE  FROM
 THE  NEW YORK STATE BOARD ON ELECTRIC GENERATION SITING AND THE ENVIRON-
 MENT PURSUANT TO ARTICLE TEN OF THIS CHAPTER PRIOR TO THE EFFECTIVE DATE
 OF THIS ARTICLE SHALL OBTAIN SUCH A CERTIFICATE THROUGH THE REGISTRATION
 PROCESS ESTABLISHED PURSUANT TO SUBDIVISION SIX OF THIS SECTION; OR
   (B) FOR INSTALLATIONS WITH A NAMEPLATE  GENERATING  CAPACITY  OF  LESS
 THAN  TWENTY-FIVE  THOUSAND  KILOWATTS, THAT WAS NOT ISSUED THE RELEVANT
 PERMITS OR CERTIFICATES ISSUED BY  THE  LOCAL  AUTHORITY  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  THIS  ARTICLE  SHALL OBTAIN THE RELEVANT PERMITS OR
 CERTIFICATES ISSUED BY THE  LOCAL  AUTHORITY  THROUGH  THE  REGISTRATION
 PROCESS ESTABLISHED PURSUANT TO SUBDIVISION SIX OF THIS SECTION.
   4. A SOLAR ELECTRIC GENERATING FACILITY, AND ALL EQUIPMENT INCLUDED IN
 OR APPURTENANT TO THE SOLAR FACILITY, SHALL PERMANENTLY RETAIN THE QUAL-
 IFICATION  LIFE ORIGINALLY ASSIGNED TO THE SOLAR FACILITY, REGARDLESS OF
 ANY INTERRUPTION IN THE SOLAR FACILITY'S OPERATION, OR  ANY  RELOCATION,
 SALE OR TRANSFER OF THE FACILITY OR OF ANY OF THE EQUIPMENT.
   5.  IF  THE APPLICABLE SUBMITTAL DEADLINE IN SUBDIVISION THREE OF THIS
 SECTION IS MET, SOLAR RENEWABLE ENERGY CERTIFICATES, BASED ON  ELECTRIC-
 ITY GENERATED BY THE SOLAR FACILITY, SHALL BE USABLE FOR COMPLIANCE WITH
 THIS  CHAPTER IMMEDIATELY UPON THE ISSUANCE OF EITHER A CERTIFICATE FROM
 THE NEW YORK STATE BOARD ON ELECTRIC GENERATION SITING AND THE  ENVIRON-
 MENT  PURSUANT TO ARTICLE TEN OF THIS CHAPTER OR THE RELEVANT PERMITS OR
 CERTIFICATES ISSUED BY THE LOCAL AUTHORITY FOR THE FACILITY, SUBJECT  TO
 ANY  OTHER  APPLICABLE  LIMITS  ON USE OF SOLAR RENEWABLE ENERGY CERTIF-
 ICATES.  IF THE APPLICABLE DEADLINE IS  NOT  MET,  ANY  SOLAR  RENEWABLE
 ENERGY CERTIFICATES BASED ON ELECTRICITY GENERATED BY THE SOLAR FACILITY
 SHALL NOT BE USABLE FOR COMPLIANCE WITH THIS ARTICLE UNTIL TWELVE MONTHS
 AFTER  THE  SOLAR  FACILITY  HAS  RECEIVED  AUTHORIZATION TO ENERGIZE IN
 ACCORDANCE WITH THE COMMISSION'S STANDARDIZED INTERCONNECTION RULES.
   6. THE COMMISSION SHALL DETERMINE AND PUBLICIZE THE PROCESS FOR REGIS-
 TRATION OF A SOLAR ELECTRIC GENERATING FACILITY WITHIN  NINETY  DAYS  OF
 THE  EFFECTIVE DATE OF THIS ARTICLE; PROVIDED, HOWEVER, THAT SUCH REGIS-
 TRATION PROCESS SHALL REQUIRE:
   (A) THE SUBMITTAL OF AN INITIAL REGISTRATION NO LATER THAN:
   (I) TEN BUSINESS DAYS AFTER EXECUTION OF THE CONTRACT FOR PURCHASE  OR
 INSTALLATION  OF THE PHOTOVOLTAIC PANELS TO BE USED IN THE SOLAR FACILI-
 TY;
   (II) IF A CONTRACT FOR PURCHASE OR INSTALLATION OF PHOTOVOLTAIC PANELS
 FOR THE SOLAR FACILITY WAS EXECUTED PRIOR TO THE EFFECTIVE DATE OF  THIS
 SECTION  THE  DEADLINE  FOR SUBMITTAL OF AN INITIAL REGISTRATION PACKAGE
 SHALL BE NINETY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION; OR

 A. 105                              7
 
   (III) IN A CASE WHERE A  CONDITIONAL  REGISTRATION  OR  EXTENSION  WAS
 PREVIOUSLY  ISSUED BUT EXPIRED BEFORE CONSTRUCTION OF THE SOLAR FACILITY
 WAS SUBSTANTIALLY COMPLETED, A NEW REGISTRATION PACKAGE SHALL BE SUBMIT-
 TED PRIOR TO COMPLETION OF CONSTRUCTION;
   (B)  THAT CONSTRUCTION OF THE SOLAR FACILITY SHALL NOT BEGIN UNTIL THE
 COMMISSION HAS ISSUED A CONDITIONAL REGISTRATION FOR THE FACILITY; AND
   (C) THAT CONSTRUCTION OF THE SOLAR FACILITY  SHALL  BE  COMPLETED  AND
 LOCAL  CODE  APPROVAL GRANTED PRIOR TO THE EXPIRATION OF THE CONDITIONAL
 REGISTRATION OR ANY EXTENSION OF SUCH CONDITIONAL REGISTRATION.
   § 254. USING RENEWABLE ENERGY CERTIFICATES AND SOLAR RENEWABLE  ENERGY
 CERTIFICATES FOR RENEWABLE PORTFOLIO STANDARD COMPLIANCE. 1. A RENEWABLE
 ENERGY  CERTIFICATE  OR SOLAR RENEWABLE ENERGY CERTIFICATE SHALL BE USED
 TO MEET RENEWABLE PORTFOLIO STANDARD REQUIREMENTS  FOR  SPECIFIC  ENERGY
 YEARS,  BASED  ON  THE TYPE OF RENEWABLE ENERGY UPON WHICH THE RENEWABLE
 ENERGY CERTIFICATE OR SOLAR RENEWABLE ENERGY CERTIFICATE IS  BASED,  AND
 THE  ENERGY  YEAR  DURING  WHICH  THE RENEWABLE ENERGY WAS GENERATED, AS
 FOLLOWS:
   (A) A SOLAR RENEWABLE ENERGY CERTIFICATE BASED ON ENERGY GENERATED  ON
 OR  AFTER APRIL FIRST, TWO THOUSAND TWENTY-EIGHT SHALL BE USED TO COMPLY
 WITH RENEWABLE PORTFOLIO  STANDARD  REQUIREMENTS  FOR  ANY  ONE  OF  THE
 FOLLOWING THREE ENERGY YEARS:
   (I) THE ENERGY YEAR IN WHICH THE UNDERLYING ENERGY WAS GENERATED; OR
   (II)  EITHER  OF THE TWO ENERGY YEARS IMMEDIATELY FOLLOWING THE ENERGY
 YEAR IN WHICH THE UNDERLYING ENERGY WAS GENERATED;
   (B) A SOLAR RENEWABLE ENERGY CERTIFICATE  BASED  ON  ENERGY  GENERATED
 BEFORE  APRIL  FIRST,  TWO  THOUSAND  TWENTY-EIGHT SHALL BE USED ONLY TO
 COMPLY WITH THE REQUIREMENTS OF THIS ARTICLE FOR THE ENERGY YEAR  DURING
 WHICH  THE UNDERLYING ENERGY WAS GENERATED, AND/OR THE SUBSEQUENT ENERGY
 YEAR; AND
   2. ONCE A RENEWABLE  ENERGY  CERTIFICATE  OR  SOLAR  RENEWABLE  ENERGY
 CERTIFICATE  HAS BEEN USED FOR COMPLIANCE WITH THIS ARTICLE, THE RENEWA-
 BLE ENERGY CERTIFICATE OR SOLAR RENEWABLE ENERGY  CERTIFICATE  SHALL  BE
 PERMANENTLY RETIRED AND SHALL NOT BE USED AGAIN.
   §  255.  ISSUANCE OF RENEWABLE ENERGY CERTIFICATES AND SOLAR RENEWABLE
 ENERGY CERTIFICATES. 1. THE NEW YORK STATE ENERGY AND RESEARCH  DEVELOP-
 MENT  AUTHORITY  SHALL  ISSUE  RENEWABLE  ENERGY  CERTIFICATES AND SOLAR
 RENEWABLE ENERGY CERTIFICATES FOR USE IN COMPLYING WITH THIS ARTICLE.
   2. THE COMMISSION MAY ISSUE AN ORDER DISCONTINUING THE DESIGNATION  OF
 THE  NEW  YORK  STATE  ENERGY  AND  RESEARCH DEVELOPMENT AUTHORITY UNDER
 SUBDIVISION ONE OF THIS SECTION, AND/OR APPROVING USE OF RENEWABLE ENER-
 GY CERTIFICATES OR SOLAR RENEWABLE ENERGY CERTIFICATES ISSUED BY ANOTHER
 ENTITY FOR COMPLIANCE WITH THIS ARTICLE. THE  COMMISSION  SHALL  POST  A
 NOTICE  OF  ITS INTENT TO ISSUE SUCH AN ORDER AT LEAST THIRTY DAYS PRIOR
 TO ISSUING THE ORDER, AND MAY,  IN  ITS  DISCRETION,  CHOOSE  TO  ACCEPT
 PUBLIC COMMENT ON THE NOTICE.
   3.  BEGINNING  APRIL  FIRST,  TWO  THOUSAND TWENTY-EIGHT, IN MEASURING
 GENERATION TO DETERMINE THE NUMBER OF RENEWABLE ENERGY  CERTIFICATES  OR
 SOLAR  RENEWABLE  ENERGY  CERTIFICATES  TO  ISSUE, THE COMMISSION OR ITS
 DESIGNEE SHALL ACCEPT ONLY READINGS OF A METER  THAT  RECORDS  KILOWATT-
 HOUR  PRODUCTION  OF  ELECTRICAL  ENERGY, AND WHICH MEETS ALL APPLICABLE
 REQUIREMENTS OF THIS SUBDIVISION. THE READINGS MAY BE TAKEN OR SUBMITTED
 BY ANY PERSON, BUT SHALL BE VERIFIED BY THE COMMISSION OR  ITS  DESIGNEE
 IN  ACCORDANCE  WITH  THE  AMERICAN  NATIONAL STANDARDS INSTITUTE (ANSI)
 STANDARD C12.1-2008, ELECTRIC METERS CODE FOR ELECTRICITY  METERING,  AS
 AMENDED OR SUPPLEMENTED.

 A. 105                              8
 
   4. THE COMMISSION OR ITS DESIGNEE SHALL ISSUE RENEWABLE ENERGY CERTIF-
 ICATES  AND  SOLAR  RENEWABLE  ENERGY  CERTIFICATES IN WHOLE UNITS, EACH
 REPRESENTING THE ENVIRONMENTAL ATTRIBUTES OF ONE MEGAWATT-HOUR OF  ELEC-
 TRIC GENERATION.
   5.  ELECTRIC  GENERATION  QUALIFIES  FOR  ISSUANCE OF RENEWABLE ENERGY
 CERTIFICATES OR SOLAR RENEWABLE ENERGY CERTIFICATES ONLY IF:
   (A) IT IS SOLAR ELECTRIC GENERATION PRODUCED BY A GENERATING  FACILITY
 THAT  IS  INTERCONNECTED  WITH  AN  ELECTRIC  DISTRIBUTION  SYSTEM  THAT
 SUPPLIES ELECTRICITY TO ONE OR MORE END USERS LOCATED IN NEW YORK; OR
   (B) IT IS RENEWABLE ENERGY, OTHER THAN SOLAR ELECTRIC GENERATION,  AND
 ONE OR MORE OF THE FOLLOWING REQUIREMENTS IS MET:
   (I)  THE  GENERATING FACILITY REPORTS ITS GENERATION ELECTRONICALLY TO
 THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOPMENT  AUTHORITY  NO  LESS
 FREQUENTLY  THAN  MONTHLY, AND COMPLIES WITH ANY ADDITIONAL REQUIREMENTS
 ESTABLISHED BY THE  NEW  YORK  STATE  ENERGY  RESEARCH  AND  DEVELOPMENT
 AUTHORITY;
   (II) BOTH OF THE FOLLOWING REQUIREMENTS ARE MET:
   (1)  THE  GENERATING FACILITY REPORTS ITS GENERATION ELECTRONICALLY NO
 LESS FREQUENTLY THAN MONTHLY TO AN ELECTRIC  DISTRIBUTION  COMPANY  THAT
 THEN  PROVIDES  THE GENERATOR'S REPORT ELECTRONICALLY NO LESS FREQUENTLY
 THAN MONTHLY TO THE NEW  YORK  STATE  ENERGY  RESEARCH  AND  DEVELOPMENT
 AUTHORITY; AND
   (2)  THE GENERATING FACILITY COMPLIES WITH ANY ADDITIONAL REQUIREMENTS
 ESTABLISHED BY THE  NEW  YORK  STATE  ENERGY  RESEARCH  AND  DEVELOPMENT
 AUTHORITY.
   6. IF A GENERATOR HAS ACCUMULATED A FRACTION OF A MEGAWATT-HOUR BY THE
 END  OF  AN  ENERGY  YEAR, THE FRACTION MAY BE CARRIED OVER AND COMBINED
 WITH ENERGY GENERATED IN A SUBSEQUENT ENERGY YEAR IN  ORDER  TO  MAKE  A
 FULL  MEGAWATT-HOUR  THAT IS ELIGIBLE FOR A RENEWABLE ENERGY CERTIFICATE
 OR SOLAR RENEWABLE ENERGY CERTIFICATE. IN  SUCH  A  CASE,  THE  COMBINED
 ENERGY  SHALL BE ELIGIBLE FOR ISSUANCE OF A RENEWABLE ENERGY CERTIFICATE
 OR SOLAR RENEWABLE ENERGY CERTIFICATE ONLY DURING  THE  ENERGY  YEAR  IN
 WHICH  ACCUMULATED  GENERATION  REACHES  ONE  FULL MEGAWATT-HOUR. ONLY A
 FRACTION OF A MEGAWATT-HOUR SHALL BE CARRIED OVER.
   7. THE COMMISSION SHALL REQUIRE SUBMITTAL OF INFORMATION  AND  CERTIF-
 ICATIONS  NEEDED  TO ENABLE THE COMMISSION OR ITS DESIGNEE TO VERIFY THE
 GENERATION THAT FORMS  THE  BASIS  OF  THE  REQUESTED  RENEWABLE  ENERGY
 CERTIFICATES.  THE COMMISSION SHALL REQUIRE INSPECTIONS, AS APPROPRIATE,
 OF GENERATION EQUIPMENT, MONITORING AND METERING  EQUIPMENT,  AND  OTHER
 FACILITIES  RELEVANT  TO  VERIFYING ELECTRIC GENERATION.  THE COMMISSION
 SHALL IMPOSE APPLICATION FEES, INSPECTION FEES AND OTHER CHARGES FOR ANY
 WORK REQUIRED TO VERIFY ELECTRIC GENERATION AND ISSUE  RENEWABLE  ENERGY
 CERTIFICATES OR SOLAR RENEWABLE ENERGY CERTIFICATES.
   8.  THE  COMMISSION OR ITS DESIGNEE SHALL NOT ISSUE A RENEWABLE ENERGY
 CERTIFICATE OR SOLAR RENEWABLE  ENERGY  CERTIFICATE  BASED  ON  ELECTRIC
 GENERATION  THAT HAS PREVIOUSLY BEEN USED FOR COMPLIANCE WITH THIS ARTI-
 CLE, OR THAT HAS BEEN USED TO SATISFY ANOTHER STATE'S  RENEWABLE  ENERGY
 REQUIREMENTS OR ANY VOLUNTARY CLEAN ELECTRICITY MARKET OR PROGRAM.
   9.  A  CUSTOMER-GENERATOR  THAT  IS ELIGIBLE FOR NET METERING OWNS THE
 RENEWABLE ATTRIBUTES OF THE ENERGY IT GENERATES ON OR AFTER APRIL FIRST,
 TWO THOUSAND TWENTY-EIGHT, UNLESS THERE IS A CONTRACT  WITH  AN  EXPRESS
 PROVISION  THAT ASSIGNS OWNERSHIP OF THE RENEWABLE ATTRIBUTES. THE OWNER
 OF A SOLAR ELECTRIC GENERATION FACILITY THAT IS  NOT  ELIGIBLE  FOR  NET
 METERING  OWNS THE RENEWABLE ATTRIBUTES OF THE ENERGY IT GENERATES ON OR
 AFTER APRIL FIRST, TWO THOUSAND TWENTY-EIGHT, UNLESS THERE IS A CONTRACT

 A. 105                              9
 
 WITH AN EXPRESS PROVISION THAT ASSIGNS OWNERSHIP OF THE RENEWABLE ATTRI-
 BUTES.
   § 256. ALTERNATIVE COMPLIANCE PAYMENTS. 1. AN ELECTRIC CORPORATION MAY
 CHOOSE  TO  COMPLY  WITH  RENEWABLE  PORTFOLIO  STANDARD REQUIREMENTS BY
 SUBMITTING ONE OR MORE ALTERNATIVE COMPLIANCE PAYMENTS OR SOLAR ALTERNA-
 TIVE COMPLIANCE PAYMENTS.  AN ELECTRIC CORPORATION THAT  WISHES  TO  USE
 ALTERNATIVE COMPLIANCE PAYMENTS OR SOLAR ALTERNATIVE COMPLIANCE PAYMENTS
 TO COMPLY WITH THIS ARTICLE SHALL MEET THE REQUIREMENTS OF THIS SECTION.
   2. THE CHAIRMAN OF THE COMMISSION SHALL APPOINT AN ALTERNATIVE COMPLI-
 ANCE  PAYMENTS  ADVISORY  COMMITTEE  TO  PROVIDE  RECOMMENDATIONS TO THE
 COMMISSION REGARDING THE  APPROPRIATE  COST  OF  ALTERNATIVE  COMPLIANCE
 PAYMENTS  AND  SOLAR  ALTERNATIVE  COMPLIANCE PAYMENTS, AS WELL AS OTHER
 CHARACTERISTICS OF THEIR USE. THE COMMISSION SHALL CONSIDER THE ADVISORY
 COMMITTEE'S RECOMMENDATION AND  SHALL,  THROUGH  COMMISSION  ORDER,  SET
 PRICES FOR ALTERNATIVE COMPLIANCE PAYMENTS AND SOLAR ALTERNATIVE COMPLI-
 ANCE  PAYMENTS.  AT  A  MINIMUM,  THE PRICE OF AN ALTERNATIVE COMPLIANCE
 PAYMENT OR A SOLAR ALTERNATIVE COMPLIANCE PAYMENT SHALL BE  HIGHER  THAN
 THE ESTIMATED COMPETITIVE MARKET COST OF THE FOLLOWING:
   (A)  THE COST OF MEETING THE REQUIREMENT THROUGH PURCHASE OF A RENEWA-
 BLE ENERGY CERTIFICATE OR SOLAR RENEWABLE ENERGY CERTIFICATE; OR
   (B) THE  COST  OF  MEETING  THE  REQUIREMENT  THROUGH  GENERATING  THE
 REQUIRED RENEWABLE ENERGY.
   3.  THE  COMMISSION  SHALL ESTABLISH AND MAINTAIN A FIFTEEN YEAR SOLAR
 ALTERNATIVE COMPLIANCE PAYMENT SCHEDULE. THE COMMISSION MAY INCREASE THE
 SOLAR ALTERNATIVE COMPLIANCE PAYMENT AMOUNT FOR ONE OR MORE ENERGY YEARS
 AFTER APPROPRIATE NOTICE AND OPPORTUNITY FOR PUBLIC COMMENT  AND  PUBLIC
 HEARING.    HOWEVER,  THE COMMISSION SHALL NEITHER REDUCE THE PREVIOUSLY
 ESTABLISHED SOLAR ALTERNATIVE COMPLIANCE PAYMENT  AMOUNTS,  NOR  PROVIDE
 ANY  TYPE  OF  RELIEF  FROM  THE  OBLIGATION  TO PAY A SOLAR ALTERNATIVE
 COMPLIANCE PAYMENT.
   4. THE COMMISSION SHALL REVIEW THE AMOUNT  OF  ALTERNATIVE  COMPLIANCE
 PAYMENTS,  OTHER  THAN  SOLAR  ALTERNATIVE COMPLIANCE PAYMENTS, AT LEAST
 ONCE PER YEAR, IN CONSULTATION WITH THE ALTERNATIVE COMPLIANCE  PAYMENTS
 ADVISORY  COMMITTEE,  AND SHALL ADJUST THESE AMOUNTS AS NEEDED TO COMPLY
 WITH PARAGRAPHS (A) AND (B) OF SUBDIVISION TWO OF THIS  SECTION  AND  TO
 REFLECT  CHANGING CONDITIONS IN THE ENVIRONMENT, THE ENERGY INDUSTRY AND
 MARKETS.
   5. TO COMPLY WITH THIS ARTICLE USING ALTERNATIVE  COMPLIANCE  PAYMENTS
 OR  SOLAR ALTERNATIVE COMPLIANCE PAYMENTS, AN ELECTRIC CORPORATION SHALL
 SUBMIT THE FOLLOWING TO THE COMMISSION, AS APPLICABLE:
   (A) ONE ALTERNATIVE  COMPLIANCE  PAYMENT  FOR  EACH  MEGAWATT-HOUR  OF
 RENEWABLE ENERGY REQUIRED; OR
   (B) ONE SOLAR ALTERNATIVE COMPLIANCE PAYMENT FOR EACH MEGAWATT-HOUR OF
 SOLAR ELECTRIC GENERATION REQUIRED.
   6. THE COMMISSION SHALL USE THE ALTERNATIVE COMPLIANCE PAYMENTS MONIES
 SUBMITTED  TO  MEET  THE  REQUIREMENTS OF THIS ARTICLE TO FUND RENEWABLE
 ENERGY PROJECTS THROUGH THE GREEN JOBS-GREEN NEW YORK PROGRAM.
   7. FOR EACH ENERGY YEAR,  ALL  SOLAR  ALTERNATIVE  COMPLIANCE  PAYMENT
 MONIES  SUBMITTED  TO COMPLY WITH SOLAR ELECTRIC GENERATION REQUIREMENTS
 FOR THAT ENERGY YEAR SHALL BE REFUNDED TO  RATEPAYERS  BY  THE  ELECTRIC
 DISTRIBUTION  COMPANIES. THE COMMISSION SHALL DIVIDE THE TOTAL STATEWIDE
 SOLAR ALTERNATIVE COMPLIANCE PAYMENT MONIES TO BE REFUNDED FOR A PARTIC-
 ULAR ENERGY YEAR AMONG THE ELECTRIC DISTRIBUTION COMPANIES AS FOLLOWS:
   (A) DETERMINE THE TOTAL MEGAWATT-HOURS OF ELECTRICITY SUBJECT TO SOLAR
 RENEWABLE PORTFOLIO STANDARD REQUIREMENTS  THAT  WAS  DELIVERED  BY  ALL
 ELECTRIC DISTRIBUTION COMPANIES COMBINED DURING THE SUBJECT ENERGY YEAR;

 A. 105                             10
 
   (B)  DETERMINE  THE NUMBER OF MEGAWATT-HOURS OF ELECTRICITY SUBJECT TO
 SOLAR RENEWABLE PORTFOLIO STANDARD REQUIREMENTS THAT  WAS  DELIVERED  BY
 THE ELECTRIC DISTRIBUTION COMPANY DURING THE ENERGY YEAR;
   (C)  DIVIDE THE NUMBER DETERMINED IN PARAGRAPH (B) OF THIS SUBDIVISION
 BY THE NUMBER DETERMINED IN PARAGRAPH (A) OF THIS SUBDIVISION TO  OBTAIN
 A  FRACTION THAT REPRESENTS THE ELECTRIC DISTRIBUTION COMPANY'S SHARE OF
 THE TOTAL MEGAWATT-HOURS OF ELECTRICITY SUBJECT TO SOLAR RENEWABLE PORT-
 FOLIO STANDARD REQUIREMENTS THAT WERE DELIVERED DURING THE ENERGY  YEAR;
 AND
   (D)  FOR  EACH  ELECTRIC  DISTRIBUTION  COMPANY, MULTIPLY THE FRACTION
 DETERMINED IN PARAGRAPH (C) OF THIS SUBDIVISION BY THE  TOTAL  STATEWIDE
 SOLAR ALTERNATIVE COMPLIANCE PAYMENT MONIES TO BE REFUNDED FOR THE ENER-
 GY  YEAR,  TO OBTAIN A DOLLAR FIGURE FOR THE AMOUNT OF SOLAR ALTERNATIVE
 COMPLIANCE  PAYMENT  MONIES  THE  ELECTRIC  DISTRIBUTION  COMPANY  SHALL
 REFUND.
   §  257.  DEMONSTRATING  COMPLIANCE, REPORTING AND RECORDKEEPING. 1. BY
 OCTOBER FIRST OF EACH YEAR, EACH  ELECTRIC  CORPORATION  SHALL  FILE  AN
 ANNUAL  REPORT  WITH  THE  COMMISSION,  DEMONSTRATING  THAT THE ELECTRIC
 CORPORATION HAS MET THE REQUIREMENTS OF THIS ARTICLE FOR  THE  PRECEDING
 REPORTING YEAR.
   2. IF THE ANNUAL REPORT REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION
 DOES  NOT  DEMONSTRATE  THAT  THE  ELECTRIC CORPORATION HAS SUPPLIED THE
 RENEWABLE ENERGY CERTIFICATES OR  SOLAR  RENEWABLE  ENERGY  CERTIFICATES
 REQUIRED BY SECTION TWO HUNDRED FIFTY-TWO OF THIS ARTICLE FOR THE PREVI-
 OUS  REPORTING  YEAR, THE ANNUAL REPORT SHALL BE ACCOMPANIED BY ALTERNA-
 TIVE COMPLIANCE PAYMENTS AND/OR SOLAR ALTERNATIVE COMPLIANCE PAYMENTS IN
 SUFFICIENT QUANTITIES TO MAKE UP THE SHORTFALL.
   3. THE ANNUAL REPORT SHALL CONTAIN THE FOLLOWING BASIC INFORMATION FOR
 THE PRECEDING REPORTING YEAR:
   (A) THE TOTAL NUMBER OF MEGAWATT-HOURS OF ELECTRICITY SOLD  TO  RETAIL
 CUSTOMERS IN THE STATE;
   (B)  THE  TOTAL NUMBER OF RENEWABLE ENERGY CERTIFICATES RETIRED STATE-
 WIDE FOR THE PURPOSE OF COMPLIANCE WITH THIS ARTICLE;
   (C) THE PERCENTAGE  OF  THE  ELECTRIC  CORPORATION'S  TOTAL  STATEWIDE
 RETAIL  SALES  THAT  THE  AMOUNT  SET  FORTH UNDER PARAGRAPH (B) OF THIS
 SUBDIVISION REPRESENTS;
   (D) THE TOTAL NUMBER OF SOLAR RENEWABLE  ENERGY  CERTIFICATES  RETIRED
 FOR THE PURPOSE OF COMPLIANCE WITH THIS CHAPTER;
   (E)  THE  PERCENTAGE  OF THE ELECTRIC CORPORATION'S TOTAL RETAIL SALES
 THAT THE NUMBER IN PARAGRAPH (D) OF THIS SUBDIVISION REPRESENTS;
   (F) THE TOTAL AMOUNT OF SOLAR ELECTRIC GENERATION AND OTHER  RENEWABLE
 ENERGY  REPRESENTED  BY RENEWABLE ENERGY CERTIFICATES SUBMITTED WITH THE
 ANNUAL REPORT;
   (G) THE TOTAL NUMBER OF  ALTERNATIVE  COMPLIANCE  PAYMENTS  AND  SOLAR
 ALTERNATIVE COMPLIANCE PAYMENTS SUBMITTED WITH THE ANNUAL REPORT;
   (H)  A  SUMMARY  DEMONSTRATING HOW COMPLIANCE WITH THE REQUIREMENTS OF
 SECTION TWO HUNDRED FIFTY-TWO OF THIS ARTICLE HAS BEEN ACHIEVED;
   (I) AN ACCOUNTING ISSUED BY NEW YORK STATE ENERGY RESEARCH AND  DEVEL-
 OPMENT  AUTHORITY THAT SHOWS THE NUMBER OF RENEWABLE ENERGY CERTIFICATES
 PURCHASED OR HELD BY THE ELECTRIC CORPORATION; AND
   (J) THE PRICE OF EACH RENEWABLE ENERGY CERTIFICATE AND SOLAR RENEWABLE
 ENERGY CERTIFICATE THAT WAS RETIRED DURING THE ENERGY YEAR.
   4. THE DOCUMENTATION REQUIRED BY SUBDIVISION  THREE  OF  THIS  SECTION
 SHALL INCLUDE THE FOLLOWING:

 A. 105                             11
 
   (A)  IDENTIFICATION  OF  EACH GENERATING UNIT, INCLUDING ITS LOCATION,
 FUEL AND TECHNOLOGY TYPE, AND ANY UNIQUE STATE OR  FEDERAL  FACILITY  OR
 PLANT IDENTIFICATION NUMBER;
   (B)  AN  AFFIDAVIT  FROM THE OPERATOR OF EACH GENERATING UNIT THAT THE
 SPECIFIED AMOUNT OF MEGAWATT-HOURS FROM EACH RENEWABLE ENERGY SOURCE WAS
 GENERATED BY OR SOLD TO THE ELECTRIC CORPORATION AND THAT  THE  ELECTRIC
 CORPORATION HAS SOLE AND EXCLUSIVE TITLE TO THE RENEWABLE ENERGY AND HAS
 NOT  BEEN  USED TO MEET THE RENEWABLE PORTFOLIO STANDARD ENERGY REQUIRE-
 MENTS IN ANY OTHER STATE OR JURISDICTION;
   (C) AN AFFIDAVIT FROM THE  ELECTRIC  CORPORATION  THAT  THE  SPECIFIED
 MEGAWATT-HOURS  WERE  DELIVERED  INTO  NEW  YORK  AND  COMPLIED WITH THE
 COMMISSION'S STANDARD INTERCONNECTION RULES; AND
   (D) FOR EACH SOLAR RENEWABLE  ENERGY  CERTIFICATE  SUBMITTED,  CERTIF-
 ICATION  OF  COMPLIANCE  WITH  THE  REQUIREMENTS  OF  SUBDIVISION TWO OF
 SECTION TWO HUNDRED FIFTY-THREE OF THIS ARTICLE THAT THE RENEWABLE ENER-
 GY CERTIFICATE HAS NOT BEEN USED TO SATISFY  ANOTHER  STATE'S  RENEWABLE
 ENERGY  REQUIREMENTS.  THE  CERTIFICATION SHALL BE IN A FORM REQUIRED BY
 THE COMMISSION AND AVAILABLE ON THE COMMISSION'S WEBSITE.
   5. FAILURE OF AN ELECTRIC CORPORATION TO DEMONSTRATE  COMPLIANCE  WITH
 THIS  ARTICLE  IN ACCORDANCE WITH THIS SECTION, WITHIN THE DEADLINES SET
 FORTH IN THIS SECTION, SHALL SUBJECT THE ELECTRIC CORPORATION TO  PENAL-
 TIES UNDER SECTION TWO HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   6.  EACH ELECTRIC CORPORATION SHALL KEEP ALL RECORDS PERTAINING TO THE
 REQUIREMENTS IN THIS ARTICLE FOR A PERIOD OF FIVE YEARS, INCLUDING  DATA
 ON  MEGAWATT-HOURS RESULTING FROM OWNED GENERATION, CONTRACTS, PURCHASES
 FROM THE WHOLESALE MARKET, AND PURCHASES  OF  RENEWABLE  ENERGY  CERTIF-
 ICATES.  EACH  ELECTRIC  CORPORATION  SHALL  MAKE  ALL PERTINENT RECORDS
 AVAILABLE FOR REVIEW UPON REQUEST BY THE COMMISSION OR ITS DESIGNEE.
   § 258. ENFORCEMENT. 1. FAILURE TO COMPLY WITH ANY  PROVISION  OF  THIS
 ARTICLE SHALL SUBJECT THE VIOLATOR TO THE FOLLOWING PENALTIES IN ACCORD-
 ANCE WITH THE COMMISSION'S REGULATORY AND STATUTORY AUTHORITY:
   (A)  SUSPENSION  OR REVOCATION OF AN ELECTRIC POWER SUPPLIER'S LICENSE
 OR ANY OTHER PREVIOUSLY ISSUED COMMISSION APPROVAL;
   (B) FINANCIAL PENALTIES;
   (C) DISALLOWANCE OF RECOVERY OF COSTS IN RATES; AND
   (D) PROHIBITION ON ACCEPTING NEW CUSTOMERS.
   2. IN DETERMINING  THE  APPROPRIATE  SANCTION,  THE  COMMISSION  SHALL
 CONSIDER THE FOLLOWING CRITERIA AND ANY OTHER FACTORS DEEMED APPROPRIATE
 AND MATERIAL TO THE VIOLATOR'S FAILURE TO COMPLY:
   (A)  THE GOOD FAITH EFFORTS, IF ANY, OF THE ENTITY CHARGED IN ATTEMPT-
 ING TO ACHIEVE COMPLIANCE;
   (B) THE GRAVITY OF  THE  VIOLATION  OR  FAILURE  TO  COMPLY  WITH  THE
 REQUIREMENTS IN THIS CHAPTER;
   (C)  THE  NUMBER  OF  PAST  VIOLATIONS BY THE ENTITY CHARGED REGARDING
 THESE STANDARDS AND OTHER STANDARDS ADOPTED BY THE COMMISSION; AND
   (D) THE APPROPRIATENESS OF THE SANCTION OR FINE TO  THE  SIZE  OF  THE
 COMPANY CHARGED.
   § 2. This act shall take effect immediately.