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.
