S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5841
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     June 5, 2015
                                      ___________
       Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations
       AN ACT to amend the public service law, in relation to a community solar
         pilot program
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The public service law is amended by adding a  new  section
    2  66-o to read as follows:
    3    S  66-O. NEW YORK STATE COMMUNITY SOLAR PILOT PROGRAM.  1. THE COMMIS-
    4  SION SHALL ESTABLISH THE NEW YORK STATE COMMUNITY SOLAR PILOT PROGRAM TO
    5  AUTHORIZE THE DEVELOPMENT OF UP TO FIFTY MEGAWATTS  OF  COMMUNITY  SOLAR
    6  CAPACITY  STATEWIDE, STRIVING FOR A REGIONAL BALANCE, IN ORDER TO STIMU-
    7  LATE THE GROWTH OF COMMUNITY SOLAR,  USING  A  SUBSCRIPTION-BASED  MODEL
    8  WHICH  OFFERS  ENERGY  FOR A FIXED PERIOD OF YEARS, WITH ELECTRIC CORPO-
    9  RATION OWNERSHIP AND MANAGEMENT. ANY SUBSCRIPTION PARTICIPATION BY ELEC-
   10  TRIC CORPORATIONS SHALL BE ON A DEFAULT  BASIS  ONLY  IN  THE  EVENT  OF
   11  UNSOLD SUBSCRIPTIONS.
   12    2.  THE  COMMISSION  SHALL  OVERSEE  AND APPROVE THE IMPLEMENTATION OF
   13  COMMUNITY SOLAR PILOT PROGRAMS  BY  ELECTRIC  CORPORATIONS  WHICH  SHALL
   14  INCLUDE THE FOLLOWING ELEMENTS:
   15    (A)  ELECTRIC  CORPORATIONS SHALL OWN OR HAVE A LONG-TERM LEASE ON THE
   16  REAL PROPERTY WHERE A SOLAR ARRAY WILL BE CONSTRUCTED AND SUCH  LOCATION
   17  SHALL  BE STRATEGICALLY LOCATED SO AS TO ALLOW FOR AN OPTIMIZED AND MORE
   18  SECURE AND FLEXIBLE ELECTRIC POWER SYSTEM.
   19    (B) THE ELECTRIC CORPORATION SHALL OWN  THE  SOLAR  PANELS  AND  OTHER
   20  INFRASTRUCTURE  REQUIRED  TO  INTEGRATE  THE ELECTRICITY PRODUCED EFFEC-
   21  TIVELY INTO THE GRID CONNECTING TO THE ELECTRIC SYSTEM  WHICH  SHALL  BE
   22  INTERCONNECTED  AND OPERATED IN PARALLEL WITH THE ELECTRIC CORPORATION'S
   23  DISTRIBUTION FACILITIES.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11429-01-5
       S. 5841                             2
    1    (C) THE ELECTRIC CORPORATIONS SHALL ISSUE A REQUEST FOR  PROPOSAL  FOR
    2  THE CONSTRUCTION FOR THE SOLAR ARRAY.
    3    (D)  CUSTOMERS SHALL BE PROVIDED THE OPPORTUNITY TO PARTICIPATE IN THE
    4  COMMUNITY SOLAR PILOT PROGRAM ON A FIRST COME, FIRST SERVE BASIS WHILE A
    5  PERCENTAGE OF SUBSCRIPTIONS SHALL  BE  RETAINED  AS  DETERMINED  BY  THE
    6  COMMISSION FOR LOW AND MODERATE INCOME PARTICIPATION.
    7    (E)  TERMS  OF  PARTICIPATION  FOR  CUSTOMERS SHALL BE PROPOSED BY THE
    8  ELECTRIC CORPORATION FOR REVIEW BY THE COMMISSION:
    9    (I) THE COMMISSION SHALL ALLOW  UTILITIES  TO  PROPOSE  TERMS  WHEREBY
   10  PARTICIPATING  CUSTOMERS  SHALL  RECEIVE A BLOCK OF ENERGY IN INCREMENTS
   11  APPROVED BY THE COMMISSION BASED ON THE AVERAGE  MONTHLY  USAGE  OF  THE
   12  CUSTOMER  WITH  A FIXED PRICE PER KILOWATT HOUR FOR EACH BLOCK OF ENERGY
   13  WITH A RATE TO REMAIN CONSTANT FOR A FIXED PERIOD OF YEARS  AS  APPROVED
   14  BY THE COMMISSION; AND
   15    (II)  THE COMMISSIONER SHALL CONSIDER ALTERNATE OR ADDITIONAL TERMS OF
   16  PARTICIPATION AS PROPOSED BY THE ELECTRIC CORPORATION.
   17    (F) ANY CUSTOMER PARTICIPATING IN THE COMMUNITY  SOLAR  PILOT  PROGRAM
   18  SHALL  BE  EXEMPT  FROM  THE  SYSTEMS BENEFITS CHARGES AND THE RENEWABLE
   19  PORTFOLIO STANDARD SURCHARGES BASED ON THEIR SUBSCRIPTION.
   20    (G) THE ELECTRIC CORPORATION MAY PARTICIPATE IN FUNDING  OPPORTUNITIES
   21  PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
   22  OF THE NEW YORK POWER AUTHORITY.
   23    3.  THE  ECONOMIC  EVALUATION  OF  THE  PROPOSED COMMUNITY SOLAR PILOT
   24  PROGRAM BY THE COMMISSION SHALL INCLUDE A REVIEW OF THE FOLLOWING:
   25    (A) THE ELECTRIC CORPORATION, IN DETERMINING THE FIXED PRICE PER KILO-
   26  WATT HOUR FOR COMMUNITY SOLAR OWNERSHIP, SHALL INCLUDE THE  ANNUAL  COST
   27  OF  SERVICE ON THE ASSET, LESS THE ESTIMATED AVERAGE ANNUAL CAPACITY AND
   28  ENERGY REVENUE. FOR PURPOSES OF THIS PARAGRAPH, FIXED COSTS IN DETERMIN-
   29  ING THE FIXED PRICE SHALL INCLUDE: PROJECT INSTALLATION, PROJECT MATERI-
   30  AL, LABOR, TAXES,  INSURANCE,  OPERATION,  MAINTENANCE,  INTERCONNECTION
   31  COSTS,  THE  ELECTRIC  CORPORATION'S  FINANCING  COSTS  FOR  THE PROJECT
   32  INCLUDING COST OF DEBT, DEPRECIATION AND RETURN ON EQUITY, ENVIRONMENTAL
   33  AND PERMITTING COSTS, SITE SECURITY, DECOMMISSIONING COSTS AND  INFORMA-
   34  TION TECHNOLOGY PROGRAMMING COSTS.
   35    4. THE PARTICIPATING ELECTRIC CORPORATION SHALL:
   36    (A)  DEMONSTRATE  TO  THE  COMMISSION THAT REASONABLE EFFORTS SHALL BE
   37  MADE TO INFORM CUSTOMERS OF THE OPPORTUNITY TO PARTICIPATE IN THE COMMU-
   38  NITY SOLAR PILOT PROGRAM;
   39    (B) PROVIDE A COPY OF ANY CUSTOMER AGREEMENTS TO BE EXECUTED  AS  PART
   40  OF THE PROGRAM; AND
   41    (C)  PROVIDE  AN  EXAMINATION OF THE COSTS, BENEFITS, AND RISKS OF ANY
   42  PROPOSAL SUBMITTED BY AN ELECTRIC CORPORATION INCLUDING THE RATE  IMPLI-
   43  CATIONS.
   44    5.  THE  COMMISSION  SHALL  PROVIDE  AN ANNUAL REPORT ON OR BEFORE THE
   45  FIRST DAY OF JANUARY TO THE GOVERNOR, THE  TEMPORARY  PRESIDENT  OF  THE
   46  SENATE,  THE  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE
   47  AND THE MINORITY LEADER OF THE ASSEMBLY, ON THE  COMMUNITY  SOLAR  PILOT
   48  PROGRAM.
   49    S  2.  This  act shall take effect immediately; provided however, that
   50  not later than one hundred eighty days after this act shall have  become
   51  a  law,  the public service commission shall have in place a competitive
   52  process which shall be open to electric corporations.