Relates to "power purchase agreements" concerning energy technologies eligible for net metering

4 Co-sponsors

• David Carlucci
• Mark Grisanti
• Brad Hoylman-Sigal
• George Latimer

BILL NUMBER:S6958A

Title of bill

An act to amend the energy law, in relation to energy technologies eligible for net metering

Purpose

To allow the full deployment of clean energy technologies to school districts, municipalities and other public entities by making it permissible for long-term power purchase agreements to be binding on present and future governing boards.

Summary of provisions

Section 1. Defines "Power Purchase Agreement"

Section 2. Amends the energy law to apply the requirements of a longterm power purchase agreement to current and future governing boards of school districts and municipalities, except upon cause as defined in the power purchase agreement. This section also encourages agencies, municipalities and school districts to consult with NYSERDA, and specifies that the Commissioner of Education is not required to develop a pre-approved form for Power Purchase Agreements, but is authorized to develop rules and regulations related to safety.

Section 3: Sets forth the effective date

Justification

Clean and renewable energy technologies are expanding exponentially in New York State as more residences and businesses move to take advantage of clean energy while lowering their own bills. By utilizing power purchase agreements, installers of these energy technologies can pay for the up-front cost of installation of the system, borrow capital from the bank, and have a firm source of repayment through the profit the company makes from the sale of electricity to the customer. This is a very positive development, because it saves the customer money while eliminating the need for a large up-front capital investment and also creating jobs. In addition, the more clean energy technologies that are installed, the lower our emissions are which will allow the state to better meet its environmental goals.

However, we need to do more to promote the use of clean energy technologies by school districts, municipalities and other public entities.

This bill is necessary because state rules and judicial decisions can act to limit the benefits inherent to a power purchase agreement as it relates to school districts, municipalities and Boards of Cooperative Educational Services. Basically, for a power purchase agreement to be executed and function properly, it, must he a long-term contract of 15 years or more. Unfortunately, rules that govern municipal bodies, do not allow a current Board to commit future boards to these kinds of costs, except in certain circumstances. One such circumstance is an energy performance contract. This bill simply allows a power purchase agreement to operate the same way that an energy performance contract does under the State Energy Law. This bill also eliminates the need

for the Commissioner of Education to approve a power purchase agreement, in order to prevent unwarranted delays.

Fiscal implications

None

History

This is a new bill

Effective date

This bill shall take effect immediately.