Bill Text: NY A09149 | 2011-2012 | General Assembly | Amended


Bill Title: Creates the New York solar industry development and jobs act of 2012; relates to establishment of solar incentive programs by the public service commission, the power authority of the state of New York and the Long Island power authority.

Spectrum: Slight Partisan Bill (Democrat 58-23)

Status: (Introduced - Dead) 2012-05-01 - reported referred to ways and means [A09149 Detail]

Download: New_York-2011-A09149-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        9149--A
                                 I N  A S S E M B L Y
                                   January 30, 2012
                                      ___________
       Introduced  by  M. of A. ENGLEBRIGHT, CAHILL, LENTOL, TITONE, STEVENSON,
         BRINDISI, CRESPO, CASTRO,  MAGNARELLI,  ZEBROWSKI,  SIMOTAS,  RABBITT,
         GRAF,  CASTELLI,  CALHOUN, ROSENTHAL, LIFTON, GUNTHER, DINOWITZ, BREN-
         NAN, COLTON, WEISENBERG, MAISEL, MOYA,  LUPARDO,  P. RIVERA,  SCHIMEL,
         ABINANTI, JAFFEE, RUSSELL, KAVANAGH, THIELE, MARKEY, BRONSON, LATIMER,
         ROBERTS,  LINARES,  GALEF,  BENEDETTO,  LAVINE,  PAULIN,  GOLDFEDER --
         Multi-Sponsored by -- M.  of A. ABBATE, BLANKENBUSH,  BOYLE,  BURLING,
         CERETTO,  CONTE,  CROUCH,  CURRAN,  CYMBROWITZ, DUPREY, GIBSON, GLICK,
         GOTTFRIED, HAWLEY, HEASTIE, JACOBS,  JORDAN,  P. LOPEZ,  MAGEE,  McDO-
         NOUGH,   McENENY,   McKEVITT,   MILLMAN,   MONTESANO,  MURRAY,  NOLAN,
         O'DONNELL, ORTIZ, RAIA, REILLY, SALADINO, SAYWARD, SIMANOWITZ, SMARDZ,
         SWEENEY, TENNEY, WRIGHT -- read once and referred to the Committee  on
         Ways  and  Means  --  reference  changed to the Committee on Energy --
         committee discharged, bill amended, ordered reprinted as  amended  and
         recommitted to said committee
       AN  ACT  to amend the public service law and the public authorities law,
         in relation to the creation of the New York solar industry development
         and jobs act of 2012
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Legislative  intent  and purpose. It is the intent of the
    2  legislature to enable the rapid and sustainable development of a  robust
    3  solar  power  industry  in  New York by creating a scalable, diverse and
    4  competitive solar energy market.  By tapping into the  state's  abundant
    5  solar  energy  resources, it is the further intent of the legislature to
    6  harness the multiple benefits associated with  the  generation  of  such
    7  clean  power,  including the significant creation of much needed jobs, a
    8  reduction of the long-term  costs  of  electricity  generation  for  New
    9  York's  energy  consumers, including transmission and distribution costs
   10  that continue to accelerate in proportion to overall electricity  supply
   11  costs  for  the  residents  of  this state, increased reliability of the
   12  state's electric grid, reduced  peak  demand,  development  of  capacity
   13  resources  in  capacity-constrained  areas,  alleviation of local trans-
   14  mission and distribution constraints, and a decrease in the emission  of
   15  harmful  air  pollution,  including  localized  and  other emissions. By
   16  establishing a flexible and responsive program, New York will  create  a
   17  predictable investment environment that avoids price volatility allowing
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08692-14-2
       A. 9149--A                          2
    1  for  a  solar  energy enterprise that will elevate the state to be among
    2  the world's cutting edge clean energy industry leaders, while helping to
    3  secure increased economic development for New Yorkers.
    4    S  2.  Short  title.   This act shall be known and may be cited as the
    5  "New York solar industry development and jobs act of 2012".
    6    S 3. The public service law is amended by adding a new section 66-n to
    7  read as follows:
    8    S 66-N.  ESTABLISHMENT OF SOLAR INCENTIVE PROGRAM. 1. AS USED IN  THIS
    9  SECTION:
   10    (A)  "ELECTRIC  DISTRIBUTION  COMPANY" MEANS AN INVESTOR-OWNED UTILITY
   11  THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE;
   12    (B) "PREVAILING RATE OF WAGES" SHALL HAVE THE  SAME  MEANING  AS  SUCH
   13  TERM  IS  DEFINED  IN  PARAGRAPH  (A) OF SUBDIVISION FIVE OF SECTION TWO
   14  HUNDRED TWENTY OF THE LABOR LAW; AND
   15    (C) "QUALIFIED SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEM"  MEANS  (I)  A
   16  SYSTEM OF COMPONENTS THAT GENERATES ELECTRICITY FROM INCIDENTAL SUNLIGHT
   17  BY  MEANS  OF  THE  PHOTOVOLTAIC  EFFECT,  WHETHER  OR NOT THE DEVICE IS
   18  COUPLED WITH A DEVICE CAPABLE OF STORING THE ENERGY PRODUCED  FOR  LATER
   19  USE;  (II)  CONNECTED TO THE DISTRIBUTION SYSTEM OR AREA SUBSTATIONS AND
   20  ASSOCIATED FACILITIES THAT COMPRISE THE LOCAL AREA NETWORK OF  AN  ELEC-
   21  TRIC  DISTRIBUTION  COMPANY  SERVING  THE STATE AFTER JANUARY FIRST, TWO
   22  THOUSAND ELEVEN.
   23    2. NO LATER THAN JANUARY FIRST, TWO THOUSAND THIRTEEN, THE  COMMISSION
   24  SHALL  ESTABLISH  AN  INCENTIVE PROGRAM FOR THE DEVELOPMENT OF QUALIFIED
   25  SOLAR PHOTOVOLTAIC GENERATING SYSTEMS.
   26    (A) THE PROGRAM SHALL ACHIEVE THE FOLLOWING MINIMUM CAPACITY LEVELS OF
   27  QUALIFIED SOLAR PHOTOVOLTAIC GENERATION WITHIN THE AREAS SERVED  BY  THE
   28  ELECTRIC DISTRIBUTION COMPANIES REGULATED BY THE COMMISSION:
   29    (I) 400 MEGAWATTS BY 2015; AND
   30    (II) 2,100 MEGAWATTS BY 2021.
   31    (B)  THE  MINIMUM CAPACITY LEVELS ESTABLISHED IN PARAGRAPH (A) OF THIS
   32  SUBDIVISION SHALL BE ACHIEVED THROUGH ANNUAL PROPORTIONAL OBLIGATIONS ON
   33  EACH ELECTRIC DISTRIBUTION COMPANY BASED ON TOTAL ANNUAL  KILOWATT-HOURS
   34  DISTRIBUTED.
   35    (C)  THE  PROGRAM  ESTABLISHED  BY THE COMMISSION SHALL INCLUDE INCRE-
   36  MENTAL ANNUAL CAPACITY TARGETS PURSUANT TO PARAGRAPH (A) OF THIS  SUBDI-
   37  VISION  AND  SHALL ADDRESS (I) PROGRAM ADMINISTRATION AND DELIVERY; (II)
   38  TARGET MARKETS AND ALLOCATION; (III)  INCENTIVE  STRUCTURES  THAT  SHALL
   39  TAKE  INTO  CONSIDERATION THE VALUE SOLAR PHOTOVOLTAIC GENERATING SYSTEM
   40  COMPONENTS PRODUCED WITHIN THE STATE; AND (IV) ANY OTHER  ISSUES  DEEMED
   41  APPROPRIATE BY THE COMMISSION.
   42    (D)  THE  COMMISSION SHALL ORDER EACH ELECTRIC DISTRIBUTION COMPANY TO
   43  FILE A PROGRAM PLAN BY  JUNE  FIRST,  TWO  THOUSAND  THIRTEEN,  FOR  THE
   44  PURPOSE  OF  FULFILLING  ITS  OBLIGATIONS  ESTABLISHED  PURSUANT TO THIS
   45  SUBDIVISION. THE COMMISSION SHALL APPROVE EACH SUCH PLAN, OR MAY  MODIFY
   46  IT  AS IT DEEMS APPROPRIATE, IF THE COMMISSION FINDS THAT THE PLAN WOULD
   47  RESULT  IN  ACHIEVEMENT  OF  THE  COMPANY'S  OBLIGATIONS,  PROMOTES  THE
   48  SUSTAINED  AND  ORDERLY  DEVELOPMENT  OF  THE  STATEWIDE SOLAR INDUSTRY,
   49  ENHANCES PROGRAM EFFICIENCY, AND MAXIMIZES RATEPAYER VALUE.  NOTHING  IN
   50  THIS  SECTION  SHALL  BE CONSTRUED AS LIMITING THE ELECTRIC DISTRIBUTION
   51  COMPANIES' ABILITY TO PROPOSE, OR THE COMMISSION'S ABILITY TO APPROVE, A
   52  JOINT PROGRAM PLAN FOR ONE OR MORE ELECTRIC DISTRIBUTION COMPANIES.
   53    (E) THE PROGRAM ADOPTED  BY  THE  COMMISSION  AND  THE  PROGRAM  PLANS
   54  SUBMITTED BY THE ELECTRIC DISTRIBUTION COMPANIES PURSUANT TO THIS SUBDI-
   55  VISION  SHALL  BE  DESIGNED  TO ADDRESS BOTH WHOLESALE AND RETAIL MARKET
   56  OPPORTUNITIES, FOSTER A DIVERSITY OF PROJECT SIZES, GEOGRAPHIC  DISTRIB-
       A. 9149--A                          3
    1  UTION, AND PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES, SUBJECT TO
    2  COST-EFFECTIVENESS  CONSIDERATIONS;  AVOID LONG-TERM COSTS TO THE TRANS-
    3  MISSION AND DISTRIBUTION  SYSTEM;  MINIMIZE  PEAK  LOAD  IN  CONSTRAINED
    4  AREAS;  RECOVER THE COSTS IN A COMPETITIVELY NEUTRAL MANNER; AND ACHIEVE
    5  ANY OTHER OBJECTIVES THE COMMISSION MAY ESTABLISH.  PREFERENCE SHALL  BE
    6  GIVEN TO AN INCENTIVE STRUCTURE THAT: (I) COMPENSATES OWNERS OR DEVELOP-
    7  ERS  OF  QUALIFIED SOLAR PHOTOVOLTAIC GENERATING SYSTEMS ON THE BASIS OF
    8  ACTUAL PRODUCTION FROM SUCH SYSTEMS; AND (II) AWARDS INCENTIVES  ON  THE
    9  BASIS  OF  REGULAR  AND  COMPETITIVE  PROCUREMENTS UNLESS THE COMMISSION
   10  DETERMINES THAT AN ALTERNATIVE METHODOLOGY IS IN THE BEST  INTERESTS  OF
   11  THE  ELECTRIC DISTRIBUTION COMPANIES' CUSTOMERS AND THE DEVELOPMENT OF A
   12  COMPETITIVE AND SELF-SUSTAINING MARKET.
   13    (F) THE COMBINED TOTAL ANNUAL EXPENDITURES  BY  ELECTRIC  DISTRIBUTION
   14  COMPANIES  FOR  SOLAR  PROCUREMENT  UNDERTAKEN  PURSUANT TO THIS SECTION
   15  SHALL NOT EXCEED ONE AND ONE-HALF PERCENT OF  TOTAL  STATEWIDE  REVENUES
   16  COLLECTED  BY  ALL  LOAD  SERVING  ENTITIES FOR THE SALE AND DELIVERY OF
   17  ELECTRICITY AT RETAIL. IN THE EVENT THAT SUCH CAP WOULD BE EXCEEDED, THE
   18  COMMISSION MAY LIMIT THE ANNUAL INCREASE IN REQUIRED SOLAR  CAPACITY  AS
   19  ESTABLISHED  PURSUANT  TO  PARAGRAPH (B) OF THIS SUBDIVISION TO SUCH NEW
   20  CAPACITY AS CAN BE PROCURED WITH TOTAL COSTS OF LESS THAN  THE  ONE  AND
   21  ONE-HALF  PERCENT  CAP.  NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED AS
   22  AUTHORIZING THE ABROGATION OF EXISTING CONTRACTS  OR  TARIFF  RATES,  AS
   23  APPLICABLE,  PRIOR  TO THEIR TERMINATION DATE BY VIRTUE OF THE CAP BEING
   24  TRIGGERED.
   25    3. NO LATER THAN JULY FIRST, TWO  THOUSAND  FOURTEEN,  AND  EVERY  TWO
   26  YEARS  THEREAFTER,  THE COMMISSION SHALL, AFTER NOTICE AND PROVISION FOR
   27  THE OPPORTUNITY TO COMMENT, ISSUE A COMPREHENSIVE REVIEW OF THE  PROGRAM
   28  ESTABLISHED  PURSUANT  TO  THIS SECTION. THE COMMISSION SHALL DETERMINE,
   29  AMONG OTHER MATTERS: (A) PROGRESS OF EACH ELECTRIC DISTRIBUTION  COMPANY
   30  IN  MEETING  ITS  OBLIGATIONS ESTABLISHED PURSUANT TO SUBDIVISION TWO OF
   31  THIS SECTION AND PROGRESS IN MEETING  THE  OVERALL  ANNUAL  TARGETS  FOR
   32  DEPLOYMENT  OF  QUALIFIED  SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEMS; (B)
   33  DISTRIBUTION OF INSTALLATIONS BY CUSTOMER CLASS, SYSTEM  SIZE  AND  LOAD
   34  ZONE; AND (C) ANNUAL INCENTIVE COMMITMENTS AND EXPENDITURES. THE COMMIS-
   35  SION  SHALL  EVALUATE  THE  REASONABLENESS  OF THE FUTURE ANNUAL TARGETS
   36  ESTABLISHED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION
   37  AND  DETERMINE  WHETHER  THE  ANNUAL  TARGETS  SHOULD  BE   ACCELERATED,
   38  INCREASED  OR  EXTENDED.  THE COMMISSION SHALL ALSO REVIEW THE INCENTIVE
   39  STRUCTURES AND ELECTRIC DISTRIBUTION COMPANIES' PROGRAM PLANS  AND  MAKE
   40  ADJUSTMENTS  AS  NECESSARY  TO  COST-EFFECTIVELY  ACHIEVE  FUTURE ANNUAL
   41  TARGETS.
   42    4. EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION,  NOT  OTHERWISE
   43  REQUIRED  TO  PAY  LABORERS, WORKERS OR MECHANICS THE PREVAILING RATE OF
   44  WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW,  SHALL  PAY  EMPLOYEES
   45  UNDER  CONTRACT  FOR  THE  INSTALLATION  OF QUALIFIED SOLAR PHOTOVOLTAIC
   46  GENERATING SYSTEMS RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE  A  WAGE
   47  OF  NOT  LESS  THAN  THE  PREVAILING  RATE OF WAGES FOR SUCH WORK IN THE
   48  LOCALITY WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT  SHALL  BE  IN
   49  EFFECT  FOR  THE  DURATION  OF THE AVAILABILITY OF THE INCENTIVE STREAMS
   50  ESTABLISHED PURSUANT TO THIS SECTION AND IN NO EVENT SHALL SUCH REQUIRE-
   51  MENT EXTEND BEYOND THE AVAILABILITY OF  SUCH  INCENTIVE  STREAMS.  EVERY
   52  CONTRACTOR  SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION SHALL MAINTAIN
   53  PAYROLL RECORDS IN ACCORDANCE WITH SECTION TWO  HUNDRED  TWENTY  OF  THE
   54  LABOR LAW.
   55    S 4. Section 1005 of the public authorities law is amended by adding a
   56  new subdivision 24 to read as follows:
       A. 9149--A                          4
    1    24. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
    2  HAVE THE FOLLOWING MEANINGS:
    3    (1)  "PREVAILING  RATE  OF  WAGES" SHALL HAVE THE SAME MEANING AS SUCH
    4  TERM IS DEFINED IN PARAGRAPH (A) OF  SUBDIVISION  FIVE  OF  SECTION  TWO
    5  HUNDRED TWENTY OF THE LABOR LAW; AND
    6    (2)  "QUALIFIED  SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEM"  MEANS (I) A
    7  SYSTEM OF COMPONENTS THAT GENERATES ELECTRICITY FROM INCIDENTAL SUNLIGHT
    8  BY MEANS OF THE PHOTOVOLTAIC  EFFECT,  WHETHER  OR  NOT  THE  DEVICE  IS
    9  COUPLED  WITH  A DEVICE CAPABLE OF STORING THE ENERGY PRODUCED FOR LATER
   10  USE; (II) CONNECTED TO THE DISTRIBUTION SYSTEM OR AREA  SUBSTATIONS  AND
   11  ASSOCIATED  FACILITIES  THAT COMPRISE THE LOCAL AREA NETWORK OF AN ELEC-
   12  TRIC DISTRIBUTION COMPANY SERVING THE STATE  AFTER  JANUARY  FIRST,  TWO
   13  THOUSAND ELEVEN.
   14    B.  NO  LATER THAN JANUARY FIRST, TWO THOUSAND THIRTEEN, THE AUTHORITY
   15  SHALL ESTABLISH AN INCENTIVE PROGRAM FOR THE  DEVELOPMENT  OF  QUALIFIED
   16  SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEMS. THE PROPOSED INCENTIVE PROGRAM
   17  SHALL FIRST BE MADE AVAILABLE TO THE PUBLIC, WITH NOTICE AND OPPORTUNITY
   18  FOR COMMENT, BEFORE FINAL ADOPTION BY THE AUTHORITY'S BOARD OF TRUSTEES.
   19    (1) THE PROGRAM SHALL ACHIEVE THE FOLLOWING MINIMUM CAPACITY LEVELS OF
   20  QUALIFIED SOLAR PHOTOVOLTAIC GENERATION AND SHALL INCLUDE ANNUAL  INCRE-
   21  MENTAL CAPACITY TARGETS TO ACHIEVE SUCH LEVELS:
   22    (I) 120 MEGAWATTS BY 2015; AND
   23    (II) 400 MEGAWATTS BY 2021.
   24    (2)  THE  PROGRAM  ESTABLISHED BY THE AUTHORITY PURSUANT TO THIS PARA-
   25  GRAPH SHALL ADDRESS (I) PROGRAM ADMINISTRATION AND DELIVERY; (II) TARGET
   26  MARKETS AND ALLOCATION; (III) INCENTIVE STRUCTURES; AND (IV)  ANY  OTHER
   27  ISSUES  DEEMED  APPROPRIATE  BY  THE  AUTHORITY.  THE  PROGRAM  SHALL BE
   28  DESIGNED TO ADDRESS BOTH  WHOLESALE  AND  RETAIL  MARKET  OPPORTUNITIES,
   29  FOSTER  A  DIVERSITY  OF  PROJECT  SIZES,  GEOGRAPHIC  DISTRIBUTION, AND
   30  PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES, SUBJECT  TO  COST-EF-
   31  FECTIVENESS  CONSIDERATIONS;  AVOID  LONG-TERM COSTS TO THE TRANSMISSION
   32  AND DISTRIBUTION SYSTEM; MINIMIZE PEAK LOAD IN CONSTRAINED  AREAS;  AND,
   33  ACHIEVE  ANY  OTHER  OBJECTIVES THE AUTHORITY MAY ESTABLISH.  PREFERENCE
   34  SHALL BE GIVEN TO AN INCENTIVE STRUCTURE THAT: (A) COMPENSATES OWNERS OR
   35  DEVELOPERS OF QUALIFIED SOLAR PHOTOVOLTAIC  GENERATING  SYSTEMS  ON  THE
   36  BASIS  OF ACTUAL PRODUCTION FROM SUCH SYSTEMS; AND (B) AWARDS INCENTIVES
   37  ON THE BASIS OF REGULAR AND COMPETITIVE PROCUREMENTS UNLESS THE AUTHORI-
   38  TY DETERMINES THAT AN ALTERNATIVE METHODOLOGY IS IN THE  BEST  INTERESTS
   39  OF  ITS CUSTOMERS AND THE DEVELOPMENT OF A COMPETITIVE AND SELF-SUSTAIN-
   40  ING MARKET.
   41    (4) THE AUTHORITY'S ANNUAL EXPENDITURE FOR SOLAR PROCUREMENT UNDERTAK-
   42  EN PURSUANT TO THIS PARAGRAPH SHALL NOT EXCEED ONE AND ONE-HALF  PERCENT
   43  OF  ITS  ANNUAL  ELECTRICITY  SALES REVENUES. IN THE EVENT THAT SUCH CAP
   44  WOULD BE EXCEEDED, THE  AUTHORITY  MAY  LIMIT  THE  ANNUAL  INCREASE  IN
   45  REQUIRED  SOLAR  CAPACITY AS ESTABLISHED PURSUANT TO SUBPARAGRAPH ONE OF
   46  THIS PARAGRAPH TO SUCH NEW CAPACITY AS CAN BE PROCURED WITH TOTAL  COSTS
   47  OF  LESS THAN THE ONE AND ONE-HALF PERCENT CAP. NOTHING IN THIS SUBPARA-
   48  GRAPH SHALL BE CONSTRUED  AS  AUTHORIZING  THE  ABROGATION  OF  EXISTING
   49  CONTRACTS  OR  TARIFF  RATES,  AS APPLICABLE, PRIOR TO THEIR TERMINATION
   50  DATE BY VIRTUE OF THE CAP BEING TRIGGERED.
   51    C. NO LATER THAN JULY FIRST, TWO  THOUSAND  FOURTEEN,  AND  EVERY  TWO
   52  YEARS  THEREAFTER,  THE  AUTHORITY SHALL, AFTER NOTICE AND PROVISION FOR
   53  THE OPPORTUNITY TO COMMENT, ISSUE A COMPREHENSIVE REVIEW OF THE  PROGRAM
   54  ESTABLISHED PURSUANT TO THIS SUBDIVISION. THE AUTHORITY SHALL DETERMINE,
   55  AMONG  OTHER  MATTERS:  (1)  PROGRESS  IN MEETING ITS ANNUAL TARGETS FOR
   56  DEPLOYMENT OF  QUALIFIED  SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEMS;  (2)
       A. 9149--A                          5
    1  DISTRIBUTION  OF  INSTALLATIONS BY CUSTOMER CLASS, SYSTEM SIZE, AND LOAD
    2  ZONE; AND (3) ANNUAL INCENTIVE COMMITMENTS AND EXPENDITURES. THE AUTHOR-
    3  ITY SHALL EVALUATE THE  REASONABLENESS  OF  THE  FUTURE  ANNUAL  TARGETS
    4  ESTABLISHED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH B OF THIS SUBDIVI-
    5  SION  AND  DETERMINE  WHETHER  THE ANNUAL TARGETS SHOULD BE ACCELERATED,
    6  INCREASED OR EXTENDED. THE AUTHORITY SHALL  ALSO  REVIEW  THE  INCENTIVE
    7  STRUCTURES AND MAKE ADJUSTMENTS AS NECESSARY TO COST-EFFECTIVELY ACHIEVE
    8  FUTURE ANNUAL TARGETS.
    9    D.  EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SUBDIVISION, NOT OTHER-
   10  WISE REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE PREVAILING  RATE
   11  OF WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY EMPLOYEES
   12  UNDER  CONTRACT  FOR  THE  INSTALLATION  OF QUALIFIED SOLAR PHOTOVOLTAIC
   13  GENERATING SYSTEMS RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE  A  WAGE
   14  OF  NOT  LESS  THAN  THE  PREVAILING  RATE OF WAGES FOR SUCH WORK IN THE
   15  LOCALITY WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT  SHALL  BE  IN
   16  EFFECT  FOR  THE  DURATION  OF THE AVAILABILITY OF THE INCENTIVE STREAMS
   17  ESTABLISHED PURSUANT TO THIS SUBDIVISION AND  IN  NO  EVENT  SHALL  SUCH
   18  REQUIREMENT  EXTEND  BEYOND  THE AVAILABILITY OF SUCH INCENTIVE STREAMS.
   19  EVERY CONTRACTOR SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH SHALL MAIN-
   20  TAIN PAYROLL RECORDS IN ACCORDANCE WITH SECTION TWO  HUNDRED  TWENTY  OF
   21  THE LABOR LAW.
   22    S  5.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
   23  law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
   24  sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
   25  to read as follows:
   26    S  1020-II.  ESTABLISHMENT  OF  SOLAR INCENTIVE PROGRAM. 1. AS USED IN
   27  THIS SECTION:
   28    (A) "PREVAILING RATE OF WAGES" SHALL HAVE THE  SAME  MEANING  AS  SUCH
   29  TERM  IS  DEFINED  IN  PARAGRAPH  (A) OF SUBDIVISION FIVE OF SECTION TWO
   30  HUNDRED TWENTY OF THE LABOR LAW; AND
   31    (B) "QUALIFIED SOLAR PHOTOVOLTAIC GENERATING SYSTEM" MEANS A SYSTEM OF
   32  COMPONENTS (I) THAT GENERATES ELECTRICITY FROM  INCIDENTAL  SUNLIGHT  BY
   33  MEANS  OF  THE PHOTOVOLTAIC EFFECT, WHETHER OR NOT THE DEVICE IS COUPLED
   34  WITH A DEVICE CAPABLE OF STORING THE ENERGY PRODUCED FOR LATER USE; (II)
   35  CONNECTED TO THE DISTRIBUTION SYSTEM OR AREA SUBSTATIONS AND  ASSOCIATED
   36  FACILITIES  THAT COMPRISE THE LOCAL AREA NETWORK OF AN ELECTRIC DISTRIB-
   37  UTION COMPANY SERVING THE STATE AFTER JANUARY FIRST, TWO THOUSAND  ELEV-
   38  EN.
   39    2.  NO  LATER THAN JANUARY FIRST, TWO THOUSAND THIRTEEN, THE AUTHORITY
   40  SHALL ESTABLISH AN INCENTIVE PROGRAM FOR THE  DEVELOPMENT  OF  QUALIFIED
   41  SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEMS. THE PROPOSED INCENTIVE PROGRAM
   42  SHALL FIRST BE MADE AVAILABLE TO THE PUBLIC, WITH NOTICE AND OPPORTUNITY
   43  FOR COMMENT, BEFORE FINAL ADOPTION BY THE BOARD.
   44    (A) THE PROGRAM SHALL ACHIEVE THE FOLLOWING MINIMUM CAPACITY LEVELS OF
   45  QUALIFIED SOLAR PHOTOVOLTAIC GENERATION AND SHALL INCLUDE ANNUAL  INCRE-
   46  MENTAL TARGETS TO ACHIEVE SUCH LEVELS:
   47    (I) 150 MEGAWATTS BY 2015; AND
   48    (II) 500 MEGAWATTS BY 2021.
   49    (B) THE PROGRAM ESTABLISHED BY THE AUTHORITY PURSUANT TO THIS SUBDIVI-
   50  SION  SHALL ADDRESS (I) PROGRAM ADMINISTRATION AND DELIVERY; (II) TARGET
   51  MARKETS AND ALLOCATION; (III) INCENTIVE STRUCTURES; AND (IV)  ANY  OTHER
   52  ISSUES  DEEMED  APPROPRIATE  BY  THE  AUTHORITY.  THE  PROGRAM  SHALL BE
   53  DESIGNED TO ADDRESS BOTH  WHOLESALE  AND  RETAIL  MARKET  OPPORTUNITIES,
   54  FOSTER  A  DIVERSITY  OF  PROJECT  SIZES,  GEOGRAPHIC  DISTRIBUTION, AND
   55  PARTICIPATION AMONG ALL ELIGIBLE CUSTOMER CLASSES, SUBJECT  TO  COST-EF-
   56  FECTIVENESS  CONSIDERATIONS;  AVOID  LONG-TERM COSTS TO THE TRANSMISSION
       A. 9149--A                          6
    1  AND DISTRIBUTION SYSTEM; MINIMIZE PEAK LOAD IN  CONSTRAINED  AREAS;  AND
    2  ACHIEVE  ANY  OTHER  OBJECTIVES THE AUTHORITY MAY ESTABLISH.  PREFERENCE
    3  SHALL BE GIVEN TO AN INCENTIVE STRUCTURE THAT: (1) COMPENSATES OWNERS OR
    4  DEVELOPERS  OF  QUALIFIED  SOLAR  PHOTOVOLTAIC GENERATING SYSTEMS ON THE
    5  BASIS OF ACTUAL PRODUCTION FROM SUCH SYSTEMS; AND (2) AWARDS  INCENTIVES
    6  ON THE BASIS OF REGULAR AND COMPETITIVE PROCUREMENTS UNLESS THE AUTHORI-
    7  TY  DETERMINES  THAT AN ALTERNATIVE METHODOLOGY IS IN THE BEST INTERESTS
    8  OF ITS CUSTOMERS AND THE DEVELOPMENT OF A COMPETITIVE AND  SELF-SUSTAIN-
    9  ING MARKET.
   10    (C) THE AUTHORITY'S ANNUAL EXPENDITURE FOR SOLAR PROCUREMENT UNDERTAK-
   11  EN  PURSUANT  TO  THIS  SUBDIVISION  SHALL  NOT  EXCEED ONE AND ONE-HALF
   12  PERCENT OF ITS ANNUAL ELECTRICITY SALES REVENUES. IN THE EVENT THAT SUCH
   13  CAP WOULD BE EXCEEDED, THE AUTHORITY MAY LIMIT THE  ANNUAL  INCREASE  IN
   14  REQUIRED SOLAR CAPACITY AS ESTABLISHED PURSUANT TO PARAGRAPH (A) OF THIS
   15  SUBDIVISION  TO SUCH NEW CAPACITY AS CAN BE PROCURED WITH TOTAL COSTS OF
   16  LESS THAN THE ONE AND ONE-HALF PERCENT CAP. NOTHING  IN  THIS  PARAGRAPH
   17  SHALL  BE  CONSTRUED AS AUTHORIZING THE ABROGATION OF EXISTING CONTRACTS
   18  OR TARIFF RATES, AS APPLICABLE,  PRIOR  TO  THEIR  TERMINATION  DATE  BY
   19  VIRTUE OF THE CAP BEING TRIGGERED.
   20    3.  NO  LATER  THAN  JULY  FIRST, TWO THOUSAND FOURTEEN, AND EVERY TWO
   21  YEARS THEREAFTER, THE AUTHORITY SHALL, AFTER NOTICE  AND  PROVISION  FOR
   22  THE  OPPORTUNITY TO COMMENT, ISSUE A COMPREHENSIVE REVIEW OF THE PROGRAM
   23  ESTABLISHED PURSUANT TO THIS SECTION.  THE  AUTHORITY  SHALL  DETERMINE,
   24  AMONG  OTHER  MATTERS:  (1)  PROGRESS  IN MEETING ITS ANNUAL TARGETS FOR
   25  DEPLOYMENT OF  QUALIFIED  SOLAR  PHOTOVOLTAIC  GENERATING  SYSTEMS;  (2)
   26  DISTRIBUTION  OF  INSTALLATIONS BY CUSTOMER CLASS, SYSTEM SIZE, AND LOAD
   27  ZONE; AND (3) ANNUAL INCENTIVE COMMITMENTS AND EXPENDITURES. THE AUTHOR-
   28  ITY SHALL EVALUATE THE  REASONABLENESS  OF  THE  FUTURE  ANNUAL  TARGETS
   29  ESTABLISHED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION
   30  AND   DETERMINE  WHETHER  THE  ANNUAL  TARGETS  SHOULD  BE  ACCELERATED,
   31  INCREASED OR EXTENDED. THE AUTHORITY SHALL  ALSO  REVIEW  THE  INCENTIVE
   32  STRUCTURES AND MAKE ADJUSTMENTS AS NECESSARY TO COST-EFFECTIVELY ACHIEVE
   33  FUTURE ANNUAL TARGETS.
   34    4.  EVERY  CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION, NOT OTHERWISE
   35  REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE  PREVAILING  RATE  OF
   36  WAGES  PURSUANT  TO  ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY EMPLOYEES
   37  UNDER CONTRACT FOR THE  INSTALLATION  OF  QUALIFIED  SOLAR  PHOTOVOLTAIC
   38  GENERATING  SYSTEMS  RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE A WAGE
   39  OF NOT LESS THAN THE PREVAILING RATE OF  WAGES  FOR  SUCH  WORK  IN  THE
   40  LOCALITY  WHERE  SUCH  INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN
   41  EFFECT FOR THE DURATION OF THE AVAILABILITY  OF  THE  INCENTIVE  STREAMS
   42  ESTABLISHED PURSUANT TO THIS SECTION AND IN NO EVENT SHALL SUCH REQUIRE-
   43  MENT  EXTEND  BEYOND  THE AVAILABILITY OF SUCH INCENTIVE STREAMS.  EVERY
   44  CONTRACTOR SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION SHALL  MAINTAIN
   45  PAYROLL  RECORDS  IN  ACCORDANCE  WITH SECTION TWO HUNDRED TWENTY OF THE
   46  LABOR LAW.
   47    S 6. If any provision of this act is, for any reason, declared  uncon-
   48  stitutional  or  invalid, in whole or in part, by any court of competent
   49  jurisdiction, such portion shall be deemed severable, and such unconsti-
   50  tutionality or invalidity shall not affect the validity of the remaining
   51  provisions of this act, which remaining  provisions  shall  continue  in
   52  full force and effect.
   53    S 7. This act shall take effect immediately.
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