Bill Text: NY S08286 | 2009-2010 | General Assembly | Introduced
Bill Title: Establishes the solar feed-in tariff pilot program; defines terms; directs the Long Island Power Authority to pay all costs associated with the interconnection of solar energy generation facilities; requires the Long Island Power Authority to prepare an annual report describing and summarizing the solar feed-in tariff pilot program; makes related provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-06-21 - REFERRED TO RULES [S08286 Detail]
Download: New_York-2009-S08286-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 8286 I N S E N A T E June 21, 2010 ___________ Introduced by Sen. FOLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the public authorities law, in relation to creating the solar feed-in tariff pilot program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Legislative intent. The legislature finds and declares all 2 of the following: 3 (a) It is the policy of the state of New York to encourage the rapid 4 and sustainable development of electricity from renewable sources, 5 particularly from smaller, widely distributed solar photovoltaic instal- 6 lations, by the adoption of a solar feed-in tariff pilot program created 7 pursuant to this act. Such pilot program will be instituted by the Long 8 Island Power Authority within the service area of the authority. 9 (b) This act will create green jobs for the state. The German solar 10 energy industry created over 50,000 jobs in less than five years, with 11 the entire renewable energy industry creating as many as 200,000 jobs. 12 Spain boasts 25,000 solar energy workers. Gainesville, Florida, where a 13 solar feed-in tariff program is currently being tested, is experiencing 14 a surge of capital investment in community solar systems and local 15 contractors are hiring. 16 (c) The pilot program created pursuant to this act will moderate the 17 near-term impact on ratepayers, while reducing volatility and long-term 18 rates relative to other sources of power. 19 (d) The pilot program created pursuant to this act will encourage 20 energy conservation by requiring a separate new meter to measure the 21 amount of solar electricity produced on site, while retaining the meter 22 that measures the total amount of electricity used on site. 23 (e) Distributed generation will enhance reliability while maintaining 24 utility profitability. 25 (f) Local power generation from renewable energy resources is a clear 26 pathway to energy independence and security for our future. 27 (g) Distributed solar installations bring the opportunity for renewa- 28 ble power generation to the local level, avoiding the environmental EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11716-04-0 S. 8286 2 1 costs of large-scale, carbon-based, centralized power generation, and 2 reducing a wide range of air pollutants, particularly greenhouse gases. 3 (h) This act presents a market mechanism to spur the solar industry 4 within our communities. It provides a simple and transparent means for 5 solar investments to earn reasonable and reliable returns, allowing 6 capital to flow into clean and renewable energy systems in New York 7 communities. While initially more expensive, these investments will, in 8 the near future, result in sustainable green power sources that will 9 deliver electricity to public utilities at lower energy costs than 10 conventional generation. 11 S 2. Sections 1020-hh, 1020-ii and 1020-jj of the public authorities 12 law, as renumbered by chapter 433 of the laws of 2009, are renumbered 13 sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added 14 to read as follows: 15 S 1020-HH. SOLAR FEED-IN TARIFF PILOT PROGRAM. 1. FOR THE PURPOSES OF 16 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 17 (A) "COMMISSIONED" MEANS THE FIRST TIME A SOLAR ENERGY GENERATION 18 FACILITY IS PUT INTO OPERATION FOLLOWING ESTABLISHMENT OF OPERATIONAL 19 READINESS. COMMISSIONING ALSO INCLUDES THE MODERNIZATION OF AN EXISTING 20 SOLAR ENERGY GENERATION FACILITY, IF MODERNIZATION COSTS ARE AT LEAST 21 FIFTY PERCENT OF THE TOTAL ESTIMATED COST TO BUILD A COMPLETELY NEW 22 ELECTRICAL GENERATION FACILITY AT THAT SITE, INCLUDING ALL BUILDING 23 STRUCTURES AND INSTALLATIONS REQUIRED FOR ITS OPERATION. 24 (B) "PROGRAM" MEANS THE SOLAR FEED-IN TARIFF PILOT PROGRAM CREATED 25 PURSUANT TO THIS SECTION. 26 (C) "SOLAR ENERGY GENERATION FACILITY" MEANS A FACILITY OR DEVICE THAT 27 HAS THE PRIMARY PURPOSE OF COLLECTION AND DISTRIBUTION OF SOLAR ENERGY 28 FOR THE GENERATION OF ELECTRICITY, THAT HAS THE CAPACITY TO PRODUCE AT 29 LEAST ONE KILOWATT AND NOT MORE THAN ONE MEGAWATT OF ALTERNATING CURRENT 30 RATED PEAK ELECTRICITY. 31 (D) "TAXABLE ENTITY" MEANS AN OWNER OR OPERATOR OF A SOLAR ENERGY 32 GENERATION FACILITY THAT IS NOT A TAX-EXEMPT ENTITY. 33 (E) "TAX-EXEMPT ENTITY" MEANS AN OWNER OR OPERATOR OF A SOLAR ENERGY 34 GENERATION FACILITY THAT IS LISTED UNDER SECTION 501(C) OF TITLE 26 OF 35 THE UNITED STATES CODE. 36 2. (A) THE AUTHORITY SHALL ENTER INTO AGREEMENTS TO PURCHASE ALL OF 37 THE ELECTRICITY GENERATED BY THE OWNER OR OPERATOR OF A SOLAR ENERGY 38 GENERATION FACILITY LOCATED WITHIN THE SERVICE AREA OF THE AUTHORITY AT 39 THE PRICES SET FORTH IN SUBDIVISION SIX OF THIS SECTION USING THE 40 CONTRACT DEVELOPED BY THE AUTHORITY PURSUANT TO SUBDIVISION THREE OF 41 THIS SECTION ON A FIRST-COME-FIRST-SERVED BASIS. CONTRACTS ENTERED INTO 42 PURSUANT TO THIS SUBDIVISION SHALL BE TRANSFERABLE AND MAY BE USED AS 43 SECURITY FOR LOANS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA- 44 RY, THERE SHALL BE NO CAP ON THE AMOUNT OF ELECTRICITY PURCHASED FROM AN 45 INDIVIDUAL OWNER OR OPERATOR OF A SOLAR ENERGY GENERATING FACILITY 46 LOCATED WITHIN THE SERVICE AREA OF THE AUTHORITY PURSUANT TO THIS 47 SECTION. THE ONLY LIMITATION ON THE AMOUNT OF ELECTRICITY PURCHASED 48 PURSUANT TO THIS SECTION SHALL BE THE AGGREGATE LIMITATION PROVIDED FOR 49 IN PARAGRAPH (C) OF SUBDIVISION THREE OF THIS SECTION. 50 (B) THE OWNER OR OPERATOR OF A SOLAR ENERGY GENERATION FACILITY SHALL 51 PROVIDE THE AUTHORITY WITH NOTICE NOT LESS THAN SIXTY DAYS PRIOR TO THE 52 SOLAR ENERGY GENERATION FACILITY BECOMING OPERATIONAL. ONCE OPERATIONAL, 53 THE OWNER OR OPERATOR OF THE FACILITY SHALL REQUEST INTERCONNECTION WITH 54 THE ELECTRICAL CORPORATION'S DISTRIBUTION SYSTEM. 55 (C) (I) THE AUTHORITY SHALL CONNECT A SOLAR ENERGY GENERATION FACILITY 56 TO ITS DISTRIBUTION SYSTEM UPON THE TERMS AND CONDITIONS SET BY THE S. 8286 3 1 AUTHORITY, BUT IN NO CASE MORE THAN SIXTY DAYS AFTER THE REQUEST FOR 2 INTERCONNECTION PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. THE 3 AUTHORITY SHALL APPLY, IN A NONDISCRIMINATORY MANNER, ESTABLISHED STAND- 4 ARDS FOR THE INTERCONNECTION OF SOLAR ENERGY GENERATION FACILITIES THAT 5 WILL ENSURE THE RELIABILITY OF ELECTRICAL SERVICE TO ALL CUSTOMERS, AND 6 WILL ENSURE THE SAFETY OF CUSTOMERS, GRID OPERATOR EMPLOYEES, AND THE 7 GENERAL PUBLIC. 8 (II) THE AUTHORITY SHALL PREPARE, PUBLISH, AND APPLY TRANSPARENT, 9 OBJECTIVE, AND NONDISCRIMINATORY RULES FOR CONNECTING SOLAR ENERGY 10 GENERATION FACILITIES TO ITS DISTRIBUTION SYSTEM. 11 (III) IF THE AUTHORITY DOES NOT PROVIDE INTERCONNECTION WITHIN THE 12 SIXTY-DAY TIMEFRAME ESTABLISHED PURSUANT TO SUBPARAGRAPH (I) OF THIS 13 PARAGRAPH, THE AUTHORITY SHALL BEGIN PAYMENTS PURSUANT TO PARAGRAPH (A) 14 OF THIS SUBDIVISION ON THE SIXTY-FIRST DAY AND THEREAFTER. THE PAYMENT 15 AMOUNTS SHALL BE BASED ON THE NAMEPLATE CAPACITY THAT THE SOLAR ENERGY 16 GENERATION FACILITY COULD PROVIDE IF CONNECTED TO THE DISTRIBUTION 17 SYSTEM. 18 (IV) ALL COSTS ASSOCIATED WITH THE INTERCONNECTION OF SOLAR ENERGY 19 GENERATION FACILITIES, INCLUDING DIRECT INTERCONNECTION COSTS, DISTRIB- 20 UTION SYSTEM ENHANCEMENTS, AND AUTHORITY COMPLIANCE COSTS, SHALL BE PAID 21 BY THE AUTHORITY AND INCLUDED AMONG THE COSTS THAT THE AUTHORITY SHALL 22 CONSIDER UNDER PARAGRAPH (C) OF SUBDIVISION THREE OF THIS SECTION FOR 23 COST RECOVERY FROM RATEPAYERS. 24 3. (A) THE AUTHORITY SHALL DEVELOP A STANDARD CONTRACT OF TWENTY YEARS 25 DURATION TO BE USED FOR ALL PAYMENTS MADE PURSUANT TO SUBDIVISION TWO OF 26 THIS SECTION. THE CONTRACT SHALL BE WRITTEN IN SIMPLE, CLEAR LANGUAGE 27 AND SHALL SPECIFY BOTH OF THE FOLLOWING: 28 (I) THE PRICE TO BE PAID FOR EACH KILOWATT-HOUR GENERATED. 29 (II) THAT THE OWNER OR OPERATOR OF THE SOLAR ENERGY GENERATION FACILI- 30 TY MUST SELL, AND THE ELECTRICAL CORPORATION MUST PURCHASE, ALL OF THE 31 SOLAR ENERGY GENERATED BY THE SOLAR ENERGY GENERATION FACILITY. 32 (B) THE AUTHORITY MAY ADJUST THE AMOUNT SET FORTH IN SUBDIVISION SIX 33 OF THIS SECTION NO MORE THAN ONCE EVERY TWO YEARS. THE AUTHORITY SHALL 34 ANNUALLY REVIEW THE AMOUNT TAKING INTO CONSIDERATION THE ABILITY OF SUCH 35 AMOUNT TO SUCCESSFULLY ENCOURAGE THE INSTALLATION OF SOLAR ENERGY GENER- 36 ATION FACILITIES AND TAKING INTO CONSIDERATION ANY CHANGES IN ANY OF THE 37 FOLLOWING: 38 (I) ACTUAL AVERAGE SYSTEM COSTS AND THE PRODUCTION OF EACH TYPE AND 39 SIZE OF SOLAR ENERGY GENERATION FACILITY. 40 (II) INFLATION AND INTEREST RATES. 41 (III) THE RETURN ACHIEVED BY THE OWNERS OR OPERATORS OF THE SOLAR 42 ENERGY GENERATION FACILITIES AND THE ELECTRICITY RATES PAID BY RATEPAY- 43 ERS. 44 (C) NO MORE THAN ONE HUNDRED MEGAWATTS OF ALTERNATING CURRENT RATED 45 PEAK ELECTRICITY IS SUBJECT TO THE REQUIREMENTS OF THIS SECTION. 46 4. THE AUTHORITY SHALL ENSURE ALL OF THE FOLLOWING: 47 (A) A SIMPLE, CLEAR APPLICATION FORM FOR SOLAR ENERGY SYSTEM OPERATORS 48 OR OWNERS REQUIRING IDENTIFICATION OF THE SOLAR ENERGY GENERATION FACIL- 49 ITY OWNER AND THE INSTALLER, AND THE PRECISE LOCATION, TYPE AND SIZE OF 50 THE FACILITY. 51 (B) APPLICATIONS ARE PROCESSED IN LESS THAN THIRTY DAYS. 52 (C) SOLAR ENERGY GENERATION FACILITIES ARE COMMISSIONED WITHIN ONE 53 YEAR AFTER THEIR APPLICATION IS APPROVED. 54 (D) NO SYSTEM INSPECTION IS REQUIRED BEYOND WHAT IS REQUIRED BY EXIST- 55 ING LAW. S. 8286 4 1 (E) THE INSTALLATION AND USE OF A SEPARATE, DEDICATED METER TO MEASURE 2 THE PRODUCTION OF SOLAR ENERGY FACILITIES OPERATING PURSUANT TO THIS 3 SECTION, AND REQUIRING ELECTRICAL CORPORATIONS TO READ THAT METER AT NO 4 COST TO THE OWNER OR OPERATOR OF THE SOLAR ENERGY GENERATION FACILITY. 5 5.(A) THE AUTHORITY SHALL PREPARE AN ANNUAL REPORT DESCRIBING AND 6 SUMMARIZING THE PROGRAM PURSUANT TO THIS SECTION. 7 (B) THE AUTHORITY SHALL BIENNIALLY SUBMIT A REPORT TO THE LEGISLATURE 8 AND THE GOVERNOR ON THE IMPLEMENTATION OF THIS SECTION THAT SHALL 9 INCLUDE, BUT NOT BE LIMITED TO, ALL OF THE FOLLOWING: 10 (I) THE GENERATION CAPACITY OF NEW SOLAR ENERGY GENERATION FACILITIES 11 INSTALLED IN THE SERVICE AREA OF THE AUTHORITY AND THE ENVIRONMENTAL 12 EFFECTS OF THE ADDITION OF SUCH FACILITIES. 13 (II) ACTIONS TAKEN BY THE AUTHORITY TO IMPLEMENT THIS SECTION. 14 (III) REVISIONS TO THE AMOUNT SET FORTH IN SUBDIVISION SIX OF THIS 15 SECTION. 16 (IV) THE IMPACT OF THE IMPLEMENTATION OF THIS SECTION ON ELECTRICAL 17 RATES. 18 (V) RECOMMENDATIONS FOR CHANGES TO THIS SECTION, IF ANY, THAT MAY BE 19 NECESSARY OR ADVISABLE, INCLUDING WHETHER THE PROVISIONS OF THIS SECTION 20 SHOULD BE EXPANDED TO OTHER CITIES OR ADOPTED STATEWIDE. 21 6. THE PRICE OF ELECTRICITY UNDER AN AGREEMENT ENTERED INTO PURSUANT 22 TO THIS SECTION SHALL BE $0.32 PER KILOWATT HOUR. 23 S 3. Severability. If any clause, sentence, paragraph, section or part 24 of this act shall be adjudged by any court of competent jurisdiction to 25 be invalid and after exhaustion of all further judicial review, the 26 judgment shall not affect, impair or invalidate the remainder thereof, 27 but shall be confined in its operation to the clause, sentence, para- 28 graph, section or part of this act directly involved in the controversy 29 in which the judgment shall have been rendered. 30 S 4. This act shall take effect on the first of January next succeed- 31 ing the date on which it shall have become a law.