S T A T E O F N E W Y O R K ________________________________________________________________________ 7608 2015-2016 Regular Sessions I N A S S E M B L Y May 20, 2015 ___________ Introduced by M. of A. CRESPO -- read once and referred to the Committee on Energy AN ACT to amend the public service law, in relation to the creation of the New York Farm-to-Urban Consumer Solar Access Act of 2015 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 extend access to the savings and benefits of solar power 3 to electricity consumers that reside in multifamily buildings by allow- 4 ing these consumers to share in the savings and benefits of solar power 5 systems located on agricultural land or other qualified properties 6 including landfills and brownfields. By extending the state's abundant 7 solar energy resources to more consumers, it is the further intent of 8 the Legislature to reduce the costs for electricity incurred by consum- 9 ers residing in multifamily buildings, to increase the benefits that 10 accrue to electricity consumers that reside in multifamily properties 11 from the payment of the system benefit charge, to create new sources of 12 income for owners of agricultural land and other qualifying properties, 13 and to create jobs and increase economic growth for the citizens of the 14 State. 15 S 2. Short title. This act shall be known and may be cited as the "New 16 York Farm-to-Urban Consumer Solar Access Act of 2015". 17 S 3. The public service law is amended by adding a new article 12 to 18 read as follows: 19 ARTICLE 12 20 SHARED SOLAR POWER 21 SECTION 240. DEFINITIONS. 22 241. SHARED SOLAR POWER. 23 S 240. DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL 24 HAVE THE FOLLOWING MEANINGS: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11026-01-5 A. 7608 2 1 1. "SOLAR ELECTRIC GENERATING EQUIPMENT" MEANS A PHOTOVOLTAIC SYSTEM 2 THAT IS: (A) INTERCONNECTED TO THE DISTRIBUTION SYSTEM ON THE CUSTOMER 3 SIDE OF THE ELECTRIC DISTRIBUTION COMPANY METER, (B) OPERATED IN 4 CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION 5 FACILITIES AND IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTAB- 6 LISHED UNDER SECTION SIXTY-SIX-J OF THIS CHAPTER, (C) WITH A RATED 7 CAPACITY OF NOT MORE THAN TWO HUNDRED KILOWATTS UNTIL THE END OF TWO 8 THOUSAND SIXTEEN, FIVE HUNDRED KILOWATTS UNTIL THE END OF TWO THOUSAND 9 SEVENTEEN AND THE COMMISSION MAY, THROUGH A FORMAL PROCEEDING INCREASE 10 THE RATED CAPACITY TO AN AGGREGATE TOTAL OF ONE MEGAWATT THROUGH A 11 FORMAL PROCEEDING AT ANY TIME AFTER JANUARY FIRST, TWO THOUSAND EIGH- 12 TEEN, AND (D) THAT IS MANUFACTURED, INSTALLED, AND OPERATED IN ACCORD- 13 ANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS. 14 2. "CUSTOMER-GENERATOR" MEANS A RESIDENTIAL OR NON-RESIDENTIAL CUSTOM- 15 ER OF AN ELECTRIC CORPORATION WHO OWNS OR OPERATES SOLAR ELECTRIC GENER- 16 ATING EQUIPMENT AS DEFINED IN SUBDIVISION ONE OF THIS SECTION, LOCATED 17 AND USED AT HIS OR HER FARM OPERATION, AS SUCH TERM IS DEFINED IN SUBDI- 18 VISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND 19 MARKETS LAW; OR A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION 20 WHICH OWNS OR OPERATES SOLAR ELECTRIC GENERATING EQUIPMENT AS DEFINED IN 21 SUBDIVISION ONE OF THIS SECTION, LOCATED AND USED AT A QUALIFIED SITE 22 PURSUANT TO SUBDIVISION NINE OF THIS SECTION. 23 3. "NET ENERGY METER" MEANS A METER THAT MEASURES THE REVERSE FLOW OF 24 ELECTRICITY TO REGISTER THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED 25 BY AN ELECTRIC CORPORATION TO THE CUSTOMER-GENERATOR AND THE ELECTRICITY 26 PROVIDED TO THE CORPORATION BY THAT CUSTOMER-GENERATOR. 27 4. "NET ENERGY METERING" MEANS THE USE OF A NET ENERGY METER TO MEAS- 28 URE, DURING THE BILLING PERIOD APPLICABLE TO A CUSTOMER-GENERATOR, THE 29 NET AMOUNT OF ELECTRICITY SUPPLIED BY AN ELECTRIC CORPORATION AND 30 PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR. 31 5. "ELECTRIC UTILITY" MEANS ANY INVESTOR-OWNED UTILITY THAT DISTRIB- 32 UTES ELECTRICITY WITHIN THIS STATE. 33 6. "QUALIFIED CONSUMER" SHALL MEAN AN ELECTRIC SERVICE ACCOUNT HOLDER 34 OF AN ELECTRIC UTILITY WHO RESIDES IN A BUILDING OF GREATER THAN FOUR 35 HOUSING UNITS OR IN A CONDOMINIUM OR HOUSING COOPERATIVE LOCATED IN THE 36 SERVICE TERRITORY OF THE ELECTRIC UTILITY OR ANY OF ITS WHOLLY OWNED 37 SUBSIDIARIES, IN WHICH THE SHARED SOLAR POWER FACILITY, AS DEFINED IN 38 SUBDIVISION EIGHT OF THIS SECTION, IS LOCATED; OR WHO RESIDES WITHIN 39 FIVE MILES OF A FARM OPERATION AS DEFINED IN SUBDIVISION ELEVEN OF 40 SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW THAT IS 41 ALSO A QUALIFIED SITE UNDER THE PROVISIONS OF THIS CHAPTER AND IS 42 LOCATED IN THE SERVICE TERRITORY OF THE ELECTRIC UTILITY. 43 7. "QUALIFIED SOLAR ENERGY GENERATION" MEANS ELECTRIC OUTPUT MEASURED 44 IN KWH FROM A SHARED SOLAR POWER FACILITY AS DEFINED IN SUBDIVISION 45 EIGHT OF THIS SECTION. 46 8. "SHARED SOLAR POWER FACILITY" MEANS SOLAR ELECTRIC GENERATING 47 EQUIPMENT AS DEFINED IN SUBDIVISION ONE OF THIS SECTION, WHOSE OWNER 48 HOLDS THE TITLE OR LEASEHOLD OF A "QUALIFIED SITE" AS DEFINED IN SUBDI- 49 VISION NINE OF THIS SECTION, AND THAT ELECTS TO ASSIGN NET METERING 50 CREDITS TO "QUALIFIED CONSUMERS", AS DEFINED IN SUBDIVISION SIX OF THIS 51 SECTION, ACCORDING TO THE REQUIREMENTS OF THIS ARTICLE. 52 9. "QUALIFIED SITE" SHALL MEAN: (A) PROPERTY USED FOR FARM OPERATIONS 53 AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE 54 AGRICULTURE AND MARKETS LAW; OR (B) PROPERTY OWNED OR LEASED BY ANY 55 LEGAL ENTITY THAT IS ORGANIZED AS A NOT FOR PROFIT OR A LANDFILL, OR AN 56 AREA DESIGNATED AS A BROWNFIELD. A. 7608 3 1 10. "SOLAR SUBSCRIPTION" MEANS A CONTRACT MADE BY THE OWNER OF A QUAL- 2 IFIED SITE ASSIGNING A PRO-RATE SHARE, WHOSE NUMERATOR IS ONE AND WHOSE 3 DENOMINATOR IS THE NUMBER OF QUALIFIED CONSUMERS TO WHOM THE NET METER- 4 ING CREDITS OF THE SHARED SOLAR POWER FACILITY ARE BEING ALLOCATED, TO A 5 QUALIFIED CONSUMER WITH A MINIMUM LENGTH OF THREE YEARS, A MAXIMUM 6 LENGTH OF TEN YEARS, A FIXED ANNUAL RENEWAL DATE, A PROVISION PROVIDING 7 THE QUALIFIED CONSUMER WITH THE RIGHT TO END THEIR SUBSCRIPTION ON THE 8 ANNUAL RENEWAL DATE WITH SIXTY DAYS NOTICE TO THE OWNER. 9 11. "SHARED SOLAR POWER ALLOCATION SCHEDULE" SHALL MEAN AN ATTACHMENT 10 TO THE SCHEDULE PRESCRIBED IN SUBDIVISION THREE OF SECTION SIXTY-SIX-J 11 OF THIS CHAPTER, PUBLISHED BY EACH ELECTRIC UTILITY, TO BE FILLED OUT 12 ELECTRONICALLY BY THE SHARED FACILITY OWNER AND FILED ELECTRONICALLY 13 WITH THE ELECTRIC UTILITY TO SHOW THE PRORATED SHARE OF THE KWH PRODUCED 14 BY THE SHARED SOLAR FACILITY TO BE ALLOCATED TO A UTILITY ACCOUNT HOLD- 15 ER. WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS ACT EACH ELECTRIC 16 UTILITY SHALL SUBMIT ITS ATTACHMENT SCHEDULE AND DESCRIBE ITS FILING 17 PROCEDURES TO THE COMMISSION. 18 S 241. SHARED SOLAR POWER. 1. THE KWH OF ELECTRICITY GENERATED BY A 19 SHARED SOLAR FACILITY DURING EACH ELECTRIC UTILITY BILLING PERIOD SHALL 20 BE ALLOCATED BY THE OWNER OF THE SHARED SOLAR FACILITY ACCORDING TO THE 21 TERMS OF THE SUBSCRIPTION AGREEMENT FOR EACH SUBSCRIBING CONSUMER. THE 22 ALLOCATION SHALL BE RECORDED AND FILED WITH THE ELECTRIC UTILITY WHOSE 23 ACCOUNT HOLDERS ARE SUBSCRIBERS. THE AMOUNT OF THE NET METERING CREDITS 24 TO BE ATTRIBUTED TO EACH SUCH CUSTOMER SHALL BE DETERMINED BY THE ALLO- 25 CATION PROVIDED BY THE SHARED SOLAR FACILITY. THE CREDIT WILL BE 26 APPLIED TO THE MONTHLY BILL OF EACH SUBSCRIPTION HOLDER WITH A 27 SUBSCRIPTION AGREEMENT AT THE SAME RATE AS THE CUSTOMER PAYS ON THEIR 28 PRIMARY ACCOUNT. CREDITS MAY BE CARRIED FORWARD BY SUCH CUSTOMERS FROM 29 MONTH TO MONTH. WRITTEN NOTICE OF THE IDENTITY OF THE CUSTOMERS SO 30 DESIGNATED AND THE ALLOCATION OF THE CREDITS TO BE ATTRIBUTED TO SUCH 31 CUSTOMERS SHALL BE IN SUCH FORM AS REQUIRED BY THE PROVISIONS DESCRIBED 32 IN SUBDIVISION TEN OF SECTION TWO HUNDRED FORTY OF THIS ARTICLE. 33 2. A SOLAR SUBSCRIPTION SHALL NOT BE CONSIDERED AS A SECURITY. 34 3. A CUSTOMER-GENERATOR WHO OWNS A SHARED SOLAR FACILITY AT A QUALI- 35 FIED SITE MAY DESIGNATE ALL OR A PORTION OF THE NET METERING CREDITS 36 GENERATED BY SUCH EQUIPMENT TO QUALIFIED CONSUMERS WHO RESIDE WITHIN 37 THAT UTILITY SERVICE TERRITORY. 38 4. ALL RENEWABLE ENERGY CREDITS PRODUCED BY THE SHARED SOLAR FACILITY 39 SHALL, NOT WITHSTANDING THE TERMS AND CONDITIONS OF ANY INCENTIVE 40 PROGRAM FOR WHICH THE OWNER IS ELIGIBLE, REMAIN THE PROPERTY OF THE 41 OWNER OF THE SHARED SOLAR FACILITY. 42 5. SHARED SOLAR FACILITIES SHALL BE EXEMPT FROM THE LIMITATIONS SET 43 FORTH IN SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION THREE OF 44 SECTION SIXTY-SIX-J OF THIS CHAPTER. SHARED SOLAR FACILITIES SHALL BE 45 SUBJECT TO ALL SAFETY STANDARDS AS SET FORTH IN SUBDIVISION FIVE OF SUCH 46 SECTION. 47 6. EACH RETAIL ELECTRIC SUPPLIER THAT IS AN ELECTRIC DISTRIBUTION 48 COMPANY SHALL BE ENTITLED TO RECOVER THE PRUDENTLY INCURRED COSTS OF 49 COMPLYING WITH ITS OBLIGATIONS, AS DETERMINED BY THE COMMISSION. ALL 50 SUCH COSTS SHALL BE RECOVERED THROUGH THE SUPPLY PORTION OF EACH ELEC- 51 TRIC CUSTOMER'S BILL IN A COMPETITIVELY NEUTRAL MANNER. 52 7. THE COMMISSION MAY IN ITS DISCRETION AND THROUGH A FORMAL PROCEED- 53 ING, SUSPEND THIS PROGRAM IF IT IS DETERMINED TO HAVE A SUBSTANTIAL 54 NEGATIVE IMPACT ON THE UTILITY COSTS OF RATEPAYERS, OR IF IT IS DETER- 55 MINED THAT THE FURTHER OPERATION OF THE PROGRAM IS NOT IN THE PUBLIC 56 INTEREST. IF THE COMMISSION SHOULD ISSUE AN ORDER PURSUANT TO THIS A. 7608 4 1 SUBDIVISION, ALL PROJECTS ALREADY UNDER CONTRACT AS OF THE DATE OF THE 2 ORDER WOULD BE HELD HARMLESS AND ALLOWED TO OPERATE UNDER THE CONDITIONS 3 THAT EXIST PRIOR TO SUCH ORDER. 4 S 4. Severability. If any provision of this act is, for any reason, 5 declared unconstitutional or invalid, in whole or in part, by any court 6 of competent jurisdiction, such portion shall be deemed severable, and 7 such unconstitutionality or invalidity shall not affect the validity of 8 the remaining provisions of this act, which remaining provisions shall 9 continue in full force and effect. 10 S 5. This act shall take effect immediately.