Bill Text: NY S06949 | 2013-2014 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Permits agencies, municipalities and public authorities to enter into power purchase agreements.
Spectrum: Moderate Partisan Bill (Democrat 7-2)
Status: (Introduced - Dead) 2014-05-09 - PRINT NUMBER 6949A [S06949 Detail]
Download: New_York-2013-S06949-Introduced.html
Bill Title: Permits agencies, municipalities and public authorities to enter into power purchase agreements.
Spectrum: Moderate Partisan Bill (Democrat 7-2)
Status: (Introduced - Dead) 2014-05-09 - PRINT NUMBER 6949A [S06949 Detail]
Download: New_York-2013-S06949-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6949 I N S E N A T E April 7, 2014 ___________ Introduced by Sen. MARCHIONE -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the energy law, in relation to permitting agencies, municipalities and public authorities to enter into power purchase agreements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 9-102 of the energy law is amended by adding a new 2 subdivision 5 to read as follows: 3 5. "SOLAR POWER PURCHASE AGREEMENT" MEANS AN AGREEMENT FOR THE 4 PURCHASE OF ELECTRICITY, PRODUCED BY SOLAR POWERED ELECTRICITY GENERAT- 5 ING SYSTEMS, IN WHICH A PERSON AGREES TO INSTALL, MAINTAIN AND MANAGE 6 ELECTRICITY GENERATING SYSTEMS OR EQUIPMENT TO PRODUCE SUCH ELECTRICITY 7 WITH NO CAPITAL OUTLAY OR INVESTMENT BY THE AGENCY, MUNICIPALITY OR 8 PUBLIC AUTHORITY, IN EXCHANGE FOR A LONG TERM AGREEMENT TO PURCHASE THE 9 ELECTRICITY PRODUCED BY SUCH SOLAR POWERED ELECTRICITY GENERATING 10 SYSTEMS OR EQUIPMENT AT A CURRENT COST PER KILOWATT HOUR LESS THAN THAT 11 OFFERED BY THE UTILITY COMPANY SERVICING THE AREA OF SUCH AGENCY, MUNI- 12 CIPALITY OR PUBLIC AUTHORITY AND AT A TOTAL COST OVER THE LIFE OF THE 13 AGREEMENT THAT IS REASONABLY DETERMINED BY THE GOVERNING BOARD OF SUCH 14 AGENCY, MUNICIPALITY OR PUBLIC AUTHORITY TO BE LESS THAN IT WOULD OTHER- 15 WISE PAY TO THE UTILITY SERVICING ITS LOCATION. 16 S 2. Section 9-103 of the energy law, as added by chapter 733 of the 17 laws of 1985, subdivision 1 as amended and subdivision 5 as added by 18 chapter 638 of the laws of 1989, subdivision 3 as amended and subdivi- 19 sions 6 and 7 as added by chapter 368 of the laws of 1994, subdivision 4 20 as amended by chapter 83 of the laws of 1995 and subdivision 8 as added 21 by section 78 of part A of chapter 436 of the laws of 1997, is amended 22 to read as follows: 23 S 9-103. Energy performance contracts AND SOLAR POWER PURCHASE AGREE- 24 MENTS. 1. Notwithstanding any other provision of law, any agency, muni- 25 cipality, or public authority, in addition to existing powers, is 26 authorized to enter into energy performance contracts of up to thirty- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14485-01-4 S. 6949 2 1 five years duration OR SOLAR POWER PURCHASE AGREEMENTS OF UP TO TWENTY 2 YEARS DURATION, provided, that the duration of any such contract shall 3 not exceed the reasonably expected useful life of the energy facilities 4 or equipment subject to such contract. PROVIDING FURTHER THAT WITH 5 RESPECT TO SOLAR POWER PURCHASE AGREEMENTS, SUCH AGENCY, MUNICIPALITY OR 6 PUBLIC AUTHORITY IS AUTHORIZED TO RESELL ANY EXCESS ELECTRICITY GENER- 7 ATED BY SUCH SOLAR POWERED ELECTRICITY GENERATING SYSTEMS OR EQUIPMENT 8 THROUGH THE USE OF A NET METERING SYSTEM, ELECTRICITY CREDITS OR OTHER 9 MEANS APPROVED BY NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHOR- 10 ITY, THE NEW YORK INDEPENDENT SYSTEM OPERATORS OR THE PUBLIC SERVICE 11 COMMISSION. 12 2. Any energy performance contract OR SOLAR POWER PURCHASE AGREEMENT 13 entered into by any agency or municipality shall contain the following 14 clause: "This contract shall be deemed executory only to the extent of 15 the monies appropriated and available for the purpose of the contract, 16 and no liability on account therefor shall be incurred beyond the amount 17 of such monies. It is understood that neither this contract nor any 18 representation by any public employee or officer creates any legal or 19 moral obligation to request, appropriate or make available monies for 20 the purpose of the contract." 21 3. In the case of a school district or a board of cooperative educa- 22 tional services, an energy performance contract OR SOLAR POWER PURCHASE 23 AGREEMENT shall be an ordinary contingent expense, and shall in no event 24 be construed as or deemed a lease or lease-purchase of a building or 25 facility, for purposes of the education law. 26 4. Agencies, municipalities, and public authorities are encouraged to 27 consult with and seek advice and assistance from the New York state 28 energy research and development authority concerning energy performance 29 contracts AND/OR SOLAR POWER PURCHASE AGREEMENTS. 30 5. Notwithstanding any other provision of law, in order to convey an 31 interest in real property necessary for the construction of facilities 32 or the operation of equipment provided for in an energy performance 33 contract OR SOLAR POWER PURCHASE AGREEMENT, any agency, municipality or 34 public authority may enter into a lease of such real property to which 35 it holds title or which is under its administrative jurisdiction as is 36 necessary for such construction or operation, with an energy performance 37 contractor, for the same length of time as the term of such energy 38 performance contract OR SOLAR POWER PURCHASE AGREEMENT, and on such 39 terms and conditions as may be agreeable to the parties thereto and are 40 not otherwise inconsistent with law, and notwithstanding that such real 41 property may remain useful to such agency, municipality or public 42 authority for the purpose for which such real property was originally 43 acquired or devoted or for which such real property is being used. 44 6. In lieu of any other competitive procurement or acquisition process 45 that may apply pursuant to any other provision of law, an agency, muni- 46 cipality, or public authority may procure an energy performance OR SOLAR 47 POWER PURCHASE contractor by issuing and advertising a written request 48 for proposals in accordance with procurement or internal control poli- 49 cies, procedures, or guidelines that the agency, municipality, or public 50 authority has adopted pursuant to applicable provisions of the state 51 finance law, the executive law, the general municipal law, or the public 52 authorities law, as the case may be. 53 7. Sections one hundred three and one hundred nine-b of the general 54 municipal law shall not apply to an energy performance contract OR SOLAR 55 POWER PURCHASE AGREEMENT for which a written request for proposals is 56 issued pursuant to subdivision six of this section. S. 6949 3 1 8. In the case of a school district or a board of cooperative educa- 2 tional services, an energy performance contract OR SOLAR POWER PURCHASE 3 AGREEMENT shall be developed and approved pursuant to the requirements 4 of this section and pursuant to regulations promulgated by the commis- 5 sioner of education in consultation with the New York state energy 6 research and development authority. Such regulations shall include, but 7 shall not be limited to: a list of the appropriate type of projects that 8 qualify as energy performance contracts OR SOLAR POWER PURCHASE AGREE- 9 MENTS; an approval process that includes review of the type and nature 10 of the proposed project, the scope and nature of the work to be 11 performed, and a detailed breakdown of the energy savings to be derived 12 each year and for the duration of the energy performance contract; and 13 IN THE CASE OF ENERGY PERFORMANCE CONTRACTS, a process for ensuring that 14 districts have obtained financing at the lowest cost possible. Such 15 regulations shall require that all energy performance contracts which 16 contain maintenance and monitoring charges as part of the energy 17 performance contract price state such maintenance and monitoring charges 18 separately in the contract in a clear and conspicuous manner. Such 19 regulations shall not apply to energy performance contracts entered into 20 prior to the effective date of such regulations, nor shall they apply to 21 energy performance contracts for which a request for proposals was 22 issued prior to such effective date. SOLAR POWER PURCHASE AGREEMENTS MAY 23 NOT CONTAIN MAINTENANCE AND MONITORING CHARGES UNLESS THE DISTRICT 24 SPECIFICALLY REQUESTS SPECIAL MONITORING AND DISPLAY OF THE FUNCTIONING 25 OF THE ENERGY SYSTEMS OR EQUIPMENT FOR EDUCATIONAL OR PUBLIC INFORMATION 26 PURPOSES AND THEN, THE MAINTENANCE AND MONITORING CHARGES CAN ONLY APPLY 27 TO SUCH EQUIPMENT AS IS NECESSARY FOR THE ADDITIONAL MONITORING OR 28 DISPLAY. 29 S 3. This act shall take effect immediately.