Bill Text: NY S07769 | 2017-2018 | General Assembly | Introduced


Bill Title: Relates to enacting the take charge New York power program to award microgrid allocations to eligible applicants.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-02-21 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S07769 Detail]

Download: New_York-2017-S07769-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7769
                    IN SENATE
                                    February 21, 2018
                                       ___________
        Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations
        AN  ACT  to  amend the economic development law, in relation to enacting
          the take charge New York power program
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Section 188-a of the economic development law is amended by
     2  adding a new subdivision (i) to read as follows:
     3    (i)  Any  applicant  currently  receiving  proceeds under this section
     4  shall also be permitted to apply for benefits under section one  hundred
     5  eighty-eight-b of this article.
     6    §  2.  The economic development law is amended by adding a new section
     7  188-b to read as follows:
     8    § 188-b. Take charge New York power program. (a) Definitions.  For the
     9  purposes of this section, the following terms shall have  the  following
    10  meanings:
    11    (1)  "Applicable criteria" shall mean the criteria specified in subdi-
    12  vision (c) of this section.
    13    (2) "Authority" shall mean the power authority of  the  state  of  New
    14  York.
    15    (3)  "Eligible  applicant"  shall  mean an eligible business, eligible
    16  small business, eligible industrial development agency or eligible  not-
    17  for-profit  corporation  as  defined  in this section, provided however,
    18  that an eligible  applicant  shall  not  include  retail  businesses  as
    19  defined  by  the  board,  including,  without limitation, sports venues,
    20  gaming or entertainment-related establishments or  places  of  overnight
    21  accommodation.
    22    (4)  "Eligible  business"  shall mean a business other than a not-for-
    23  profit corporation which  normally  utilizes  a  minimum  peak  electric
    24  demand in excess of four hundred kilowatts.
    25    (5)  "Eligible  not-for-profit  corporation"  shall mean a corporation
    26  defined in subparagraph five of paragraph (a) of section one hundred two
    27  of the not-for-profit corporation law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14762-01-8

        S. 7769                             2
     1    (6) "Eligible small business" shall mean a business other than a  not-
     2  for-profit  corporation  which normally utilizes a minimum peak electric
     3  demand equal to or less than four hundred kilowatts.
     4    (7)  "Microgrid"  shall  mean  a  group  of  interconnected  loads and
     5  distributed energy resources within clearly defined  electrical  bounda-
     6  ries  that acts as a single controllable entity with respect to the grid
     7  and that disconnects from such grid to enable  it  to  operate  in  both
     8  grid-connected or island mode. Any entity providing microgrid technology
     9  shall be structured as a special purpose entity.
    10    (8)  "Infrastructure"  shall  mean the components necessary for trans-
    11  mission and distribution of energy on the microgrid.
    12    (9) "Takecharge New York power" shall mean a subsidy provided  by  the
    13  authority,  subject  to  an equity assurance to be matched by the appli-
    14  cant, to cover the development and infrastructure needed to install  and
    15  maintain  a  microgrid  at  each  applicant's  place  of business, as it
    16  relates to a microgrid the allocation would be the value of the monetary
    17  equivalent of the power allocation that would have  been  granted  under
    18  section one hundred eighty-eight-a of this article.
    19    (b)  Applications  for  takecharge  New  York power. (1) The board may
    20  solicit applications for takecharge New York  power  under  the  program
    21  created by this section by public notice beginning no later than Septem-
    22  ber  first,  two  thousand  nineteen.  Such notice may include newspaper
    23  advertisements, press releases, website postings,  paper  or  electronic
    24  mailing, and/or such other form of notice as the board finds appropriate
    25  in consultation with the authority. The board shall also work with local
    26  industrial   development  agencies  and  economic  development  agencies
    27  located throughout the state to identify and solicit  applications  from
    28  businesses  and  corporate  parks  that  meet  the criteria set forth in
    29  subdivision (c) of this section.
    30    (2) Applications for takecharge New York power allocations shall be in
    31  the form and contain such information, exhibits and supporting  data  as
    32  the  board prescribes in consultation with the authority. A copy of each
    33  application received shall be made available for review  by  each  board
    34  member, and a copy shall be provided to the authority.
    35    (3)  Subject  to  confidentiality  requirements,  upon receipt of each
    36  application from the board, the authority shall promptly notify by elec-
    37  tronic means, including website postings  and  such  other  methods  the
    38  board  deems  appropriate in consultation with the authority, the gover-
    39  nor, the speaker of the assembly, the minority leader of  the  assembly,
    40  the  temporary  president  of  the  senate,  the  minority leader of the
    41  senate, and each member of the state legislature in whose  district  any
    42  portion of the facility for which an allocation is requested is located.
    43  Such  notice  shall provide the name and a description of the applicant,
    44  and the address of the facility for which the allocation  is  requested.
    45  The authority shall also develop a listing which contains the name and a
    46  description  of  each  applicant,  the takecharge New York power benefit
    47  sought by each applicant, and the address of the facility for which  the
    48  applicant requests the benefit, and shall make the listing available for
    49  public review on the authority's website.
    50    (4)  Applications may be made by multiple eligible applicants, subject
    51  to acceptance by the board, if each eligible applicant is located  in  a
    52  geographic proximity to each other. The board shall set the requirements
    53  of  what  constitutes  geographic  proximity. The board shall treat such
    54  combined applications as a single application, and  use  the  cumulative
    55  totals  when  evaluating  the applicable criteria set for in subdivision
    56  (c) of this section.

        S. 7769                             3
     1    (5) Applications may be made  by  an  industrial  development  agency,
     2  subject  to  acceptance by the board, if the board determines the indus-
     3  trial development agency's application is feasible with microgrid  tech-
     4  nology.
     5    (c)  Review  applicable  criteria  and  recommendations. (1) The board
     6  shall review applications submitted under the takecharge New York  power
     7  program.    The board shall make an initial determination of whether the
     8  applicant is an eligible applicant. In the  case  of  multiple  eligible
     9  applicants  or an industrial development agency making a single applica-
    10  tion, the board shall treat  the  cumulative  application  as  a  single
    11  application.  In the case of an eligible applicant, the board may recom-
    12  mend to the authority that an allocation of a microgrid be awarded to an
    13  applicant for a facility located in the  state  of  New  York  based  on
    14  consideration of the following criteria which shall be considered in the
    15  aggregate and no one of which shall be presumptively determinative:
    16    (i) the significance of the cost of overall energy usage to the appli-
    17  cant's  overall cost of doing business, and the impact that a takecharge
    18  New York power allocation will have on the applicant's operating costs;
    19    (ii) the extent to which a takecharge  New  York  power  benefit  will
    20  result in new capital investment in the state by the applicant;
    21    (iii)  the  extent  to  which  a  takecharge New York power benefit is
    22  consistent with any regional economic development council strategies and
    23  priorities;
    24    (iv) the type and cost of buildings, equipment and  facilities  to  be
    25  constructed,  enlarged  or  installed if the applicant were to receive a
    26  benefit;
    27    (v) the applicant's payroll, salaries, benefits and number of jobs  at
    28  the facility for which a takecharge New York power benefit is requested;
    29    (vi)  the  number  of jobs that will be created or retained within the
    30  state in relation to the requested takecharge New  York  power  benefit,
    31  and  the  extent to which the applicant will agree to commit to creating
    32  or retaining such jobs as a condition to receiving a takecharge New York
    33  power benefit;
    34    (vii) whether the applicant, due to the cost of energy, is at risk  of
    35  closing  or curtailing facilities or operations in the state, relocating
    36  facilities or operations out of  the  state,  or  losing  a  significant
    37  number  of  jobs  in  the state, in the absence of a takecharge New York
    38  benefit;
    39    (viii) the significance of the applicant's facility that would receive
    40  the takecharge New York benefit to the economy of the area in which such
    41  facility is located;
    42    (ix) will agree to place an equity amount, to  be  determined  by  the
    43  board,  for  the  installation  and maintenance of a microgrid and to be
    44  released upon reimbursement  of  the  subsidy  amount  provided  by  the
    45  authority;
    46    (x)  in  addition to the foregoing criteria, in the case of a not-for-
    47  profit corporation, whether the applicant provides critical services  or
    48  substantial  benefits  to  the local community in which the facility for
    49  which the benefit is requested is located;
    50    (xi) the minimum load requirements by the applicant; and
    51    (xii) in addition to the foregoing criteria, the applicant  must  also
    52  agree  to  pay  back the subsidy provided by the authority for microgrid
    53  development, under a timeline developed by the board.
    54    (2) A recommendation by the board that the authority provide a  takec-
    55  harge  New  York power benefit in the form of a microgrid to an eligible
    56  applicant shall include, but need not be limited to:

        S. 7769                             4
     1    (i) an effective initial term of the  contract  between  the  eligible
     2  applicant and the authority which shall not exceed the effective life of
     3  the microgrid;
     4    (ii)  provisions  for  effective periodic audits of the recipient of a
     5  benefit for the purpose of determining contract and program  compliance,
     6  and for the partial or complete withdrawal of a benefit if the recipient
     7  fails  to  maintain mutually agreed upon commitments, relating to, among
     8  other things, employment  levels,  capital  investments,  and/or  energy
     9  efficiency measures;
    10    (iii)  a requirement for an agreement by the recipient of a benefit to
    11  (A) undertake at its own expense an energy audit of  its  facilities  at
    12  which receives the benefit at least once during the term of the contract
    13  but in any event not less than once every five years, provided, however,
    14  that  such  requirement  may be waived or modified by the authority on a
    15  showing of good cause by the recipient, and (B)  provide  the  authority
    16  with  a  copy  of any such audit or, at the authority's option, a report
    17  describing  the  results  of  such  audit,  and  provide   documentation
    18  requested  by  the authority relating to the implementation of any effi-
    19  ciency measures at the facilities;
    20    (iv) a requirement for an agreement between the recipient of an  allo-
    21  cation and the authority for the installation of a microgrid and mainte-
    22  nance of such equipment for a period of years; and
    23    (v)  a  requirement  for an agreement by the recipient of a benefit to
    24  (A) make its facilities available at reasonable times and intervals  for
    25  energy  audits  and  related  assessments  that the authority desires to
    26  perform, if any, at the authority's own expense, and (B) provide  infor-
    27  mation  requested by the authority or its designee in surveys, question-
    28  naires and other information requests relating to energy efficiency  and
    29  energy-related projects, programs and services.
    30    (3) The board may base its recommendation on which eligible applicants
    31  it determines best meet the applicable criteria.
    32    (4)  The  board  shall  issue  a written statement of its findings and
    33  conclusions with respect to every application and the  reasons  for  its
    34  recommendation to the authority.
    35    (5)  A  recommendation  for  a takecharge New York power benefit shall
    36  qualify an applicant to enter into a contract with the authority  pursu-
    37  ant  to  the terms and conditions of the recommendation by the board and
    38  on such other terms as the authority determines to be appropriate.
    39    (d) The authority shall, at a minimum, report quarterly to  the  board
    40  on the success of the takecharge New York benefits.
    41    (e)  For  the  purposes  of  this section, the authority shall own and
    42  maintain all microgrid infrastructure, and  shall  use  its  powers  set
    43  forth  in  section  one  thousand  five of the public authorities law to
    44  implement any microgrid infrastructure.
    45    (f) (1) The board, in consultation with the authority, shall submit to
    46  the governor, temporary president of the senate, speaker of  the  assem-
    47  bly,  minority  leader of the senate and minority leader of the assembly
    48  an evaluation of the effectiveness of  the  takecharge  New  York  power
    49  program. Such evaluation shall focus on how the program has aided recip-
    50  ients  of microgrid, and may include recommendations for how the program
    51  can be made more effective. Such evaluation shall be submitted by Decem-
    52  ber thirty-first, two thousand eighteen  and  by  December  thirty-first
    53  every five years thereafter.
    54    (2)  The board, with assistance from the authority, shall maintain the
    55  necessary records and data  required  to  perform  such  evaluation  and

        S. 7769                             5
     1  respond  to  requests  for  information  pursuant  to article six of the
     2  public officers law.
     3    (g)  The  authority  shall  have the power to effectuate all necessary
     4  regulations to carry out the intent and purpose of this chapter.
     5    (h) Nothing in this section shall  prohibit  an  applicant  from  also
     6  receiving  power allocations under section one hundred eighty-eight-a of
     7  this article.
     8    § 3. This act shall take effect on the ninetieth day  after  it  shall
     9  have become a law.
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