Relates to shared renewable facilities

Summary of provisions

Part One amends the Executive Law to authorize the Utility Intervention Unit within the Department of State to initiate, intervene or participate in proceedings before the Public Service Commission (PSC) and Department of Public Service (DPS) relating to section 66-n of the Public Service Law (Shared Renewable Energy Facilities).

Section Two creates a new § 2-e of the PSL to define "shared renewable energy facility".

Section Three amends § 5 of the PSL to authorize the PSC to determine the compatibility, interconnection and operation of shared renewable energy facilities.

Section Four creates § 66-n of the PSL and provides definitions including "subscriber", "power subscriber agreement," "subscription roster," "subscriber company," "subscription," and "bill credit."

The shared renewable energy facility compatibility map would be developed on a county-by county basis and account for the potential need for additional electric generation, electric congestion on the high voltage transmission network and the potential for reduction of carbon dioxide, sulfur dioxide, nitrogen oxide and particulate matter 2.5.

Interconnection and operations standards established under the order would provide that a shared renewable energy facility would operate in the same service territory of the electric corporation and county or counties in which its subscribers are customers and within the same load zone as determined by the location based marginal price as of the date of the initial request by a subscriber company to interconnect a shared renewable energy facility. Additionally, subscriber companies would only be authorized to sell to subscribers and not sell or otherwise market the output of shared renewable energy facilities to third parties, electric corporations, cooperatives or bulk system operators.

Subscriber protection standards established pursuant to the order would establish clear and consistent charges, guarantee refunds for subscribers for any portion of the a customer's share that does not produce electricity, limit the term of a subscriber agreement to five years for residential customers and ten years for non-residential customers.

The legislation would require electric corporations to interconnect shared renewable energy facilities located in a compatibility and accommodation zone on a first come first served basis until the total

rated generating capacity attributable to such facilities is equivalent to one half of one percent of such company's electric demand for 2005. The bill would provide that no greater than 20 percent of shared renewable energy facilities could be constructed in Potential Environmental Justice Areas as determined by the Department of Environmental Conservation as depicted on May 5, 2014.

The legislation would direct electric corporations to credit customers who are subscribers for their pro-rata portion of electricity produced by a shared renewable energy facility at the same per kilowatt hour rate applicable to customers in the same service class who do not subscribe to a shared renewable facility.

The legislation would establish safety equipment and operations standards applicable to shared renewable energy facilities.

Section Four would amend § 1020-g of the PAL to direct the Long Island Power Authority (LIPA) to provide for the interconnection of shared renewable facilities consistent with the provisions of § 66-n of the PSL.

Justification

Currently, the vast majority of electricity customers, especially those in New York City and other urban communities, are unable to install renewable energy systems on their property due to various impediments, such as high-rise apartments that have one small roof for many inhabitants.

The shared renewable energy program created by this bill will provide the opportunity for electric customers, especially multi-dwellers, to invest in shared renewable energy facilities and see tangible economic benefits in their utility bill. Specifically, customers of an electric corporation would be able to receive credit against their usage for electricity produced by shared renewable energy facilities to which they subscribe.

Under this bill, the Public Service Commission would determine which areas of the electric grid would benefit from increased distributed generation and permit the interconnection of shared renewable energy facilities that meet standards pursuant to this act. This will ensure that projects are being located in areas that provide the most benefits to the state as a whole.

Additionally, a shared renewable energy program will unlock a new market and unleash massive new private investment in New York State. This bill will provide significant financial, health, environmental and workforce benefits to the state, and promote energy independence, security and grid resiliency.

Prior history

This is a new bill.

Fiscal implications

Nominal costs to the Department of Public Service in instituting a proceeding to established shared renewable energy facility interconnection standards.

Effective date

Immediately.