S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5277
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 12, 2015
                                      ___________
       Introduced  by  Sens.  FUNKE, AMEDORE -- read twice and ordered printed,
         and when printed to be committed to the Committee on Energy and  Tele-
         communications
       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
       S. 5277                             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.
       S. 5277                             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
       S. 5277                             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.