A04294 Summary:

BILL NOA04294
 
SAME ASSAME AS S00023
 
SPONSORCusick
 
COSPNSRRosenthal L, Ortiz, Colton, Englebright, Hunter, Thiele, Griffin, Sayegh, Simotas, Dickens, Crespo, D'Urso, Taylor, Arroyo, Simon, Gottfried, Cook, Fernandez, Carroll, Dinowitz, Quart, Raia, DeStefano, Crouch, Stern, Galef, Steck, Fall, Reyes, Abinanti, Barron, Lupardo, Paulin, Perry, Fahy, Rosenthal D, Mosley, Walczyk, Jones, McDonald, Lifton, Solages, Zebrowski, Peoples-Stokes, Woerner, Weprin
 
MLTSPNSRBronson, DenDekker, McDonough, Nolan
 
 
Relates to maintaining the continued viability of the state's existing large-scale, renewable energy resources.
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A04294 Actions:

BILL NOA04294
 
02/04/2019referred to energy
03/05/2019reported referred to ways and means
06/17/2019reported referred to rules
06/20/2019reported
06/20/2019rules report cal.639
06/20/2019substituted by s23
 S00023 AMEND= PARKER
 01/09/2019REFERRED TO ENERGY AND TELECOMMUNICATIONS
 02/27/20191ST REPORT CAL.167
 02/28/20192ND REPORT CAL.
 03/04/2019ADVANCED TO THIRD READING
 03/06/2019PASSED SENATE
 03/06/2019DELIVERED TO ASSEMBLY
 03/06/2019referred to ways and means
 06/20/2019substituted for a4294
 06/20/2019ordered to third reading rules cal.639
 06/20/2019passed assembly
 06/20/2019returned to senate
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A04294 Committee Votes:

ENERGY Chair:Cusick DATE:03/05/2019AYE/NAY:15/1 Action: Favorable refer to committee Ways and Means
CusickAyePalmesanoNay
EnglebrightExcusedBlankenbushAye
CrespoAyeSmithAye
SimotasAyeWalczykAye
SantabarbaraAye
BarronAye
WalkerAye
DilanAye
HunterAye
WallaceAye
SternAye
RozicAye
SayeghAye

WAYS AND MEANS Chair:Weinstein DATE:06/17/2019AYE/NAY:31/2 Action: Favorable refer to committee Rules
WeinsteinAyeBarclayAye
LentolAyeCrouchAye
SchimmingerExcusedFitzpatrickAye
GanttExcusedHawleyAye
GlickAyeMalliotakisAye
NolanAyeMontesanoAye
PretlowAyeRaAye
PerryAyeBlankenbushAye
ColtonAyePalmesanoNay
CookAyeNorrisNay
CahillAye
AubryAye
ThieleAye
CusickAye
OrtizAye
BenedettoAye
WeprinAye
RodriguezAye
RamosAye
BraunsteinAye
McDonaldAye
RozicAye
SimotasAye
DinowitzAye
MillerAye

RULES Chair:Gottfried DATE:06/20/2019AYE/NAY:27/0 Action: Favorable
HeastieExcusedKolbAye
GottfriedAyeCrouchAye
LentolAyeFinchAye
GanttExcusedBarclayAye
NolanAyeRaiaAye
WeinsteinAyeHawleyAye
OrtizAyeGiglioAye
PretlowAyeMalliotakisAye
CookAye
GlickAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinExcused
TitusAye
Peoples-StokesExcused
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye

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A04294 Floor Votes:

There are no votes for this bill in this legislative session.
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A04294 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4294
 
SPONSOR: Cusick
  TITLE OF BILL: An act in relation to maintaining the continued viability of the state's existing large-scale, renewable energy resources   PURPOSE OR GENERAL IDEA OF BILL: New York State has been a leader in renewable energy, beginning with the hydroelectric power plant at Niagara Falls in 1895. The Clean Energy Standard mandates that by 2030, 50% of electricity consumed in the state will come from renewables and establishes programs to develop new capac- ity. However, economic factors threaten NY's existing large-scale renew- able generators, in many cases the most cost-effective sources of clean power. This bill establishes utility support for these facilities to protect critical infrastructure and ensure that the 50 by 30 goal is achieved as economically as possible. New York recognizes the social cost of greenhouse gas (GHG) emissions and the value of clean power sources. This is reflected in the compen- sation provided to nuclear generators through the Zero Emission Credit program. Legacy large-scale renewables (LSRs), however, are compensated at the same rates as natural gas or coal generators despite their carbon benefits. Low fuel prices have brought these rates below the long-term viability threshold of many legacy renewable resources. Approximately 10% of New York's electricity currently comes from inde- pendently owned hydroelectric facilities, which also provide flood control and water levels management to support communities and the envi- ronment. Biomass plants are a critical economic component of the fores- try industry in Northern NY and power the US Army installation at Fort Drum. These facilities face an uncertain future and may ultimately be compelled to retire or export from the state. This would not only endanger their community and economic benefits, it would also undermine the cost-effective achievement of the state's GHG targets. The current Maintenance Tier program does not adequately address these issues. Through the Renewable Portfolio Standard, New York ratepayers have invested heavily in the development of wind, solar, and biomass facili- ties. Without fair compensation going forward, at the expiration of the RPS contracts these generators will likely export into neighboring ener- gy markets or terminate operations. This will mean that despite being located in NY, these resources will not contribute to the 50 by 30 goal, depriving NY ratepayers of continuing benefit from their investment. New capacity will need to be built at a higher cost to achieve the same target. This bill provides compensation for the clean energy attributes of lega- cy large-scale renewable generators at a variable per-kWh rate equal to 75% of the cost of new renewables. This ensures that it will save rate- payers money in the achievement of the CES goal by preserving existing renewable producers at 25% less than the cost of new. This does not place any additional burden on ratepayers to purchase renewable energy; rather, it ensures that NY will first look to purchase electricity from existing, cheaper resources before paying a high price for new renewa- bles to achieve the mandate already established by the CES.   SUMMARY OF PROVISIONS: Section One - Provides the Legislative findings and intent of the bill. Section Two - Defines various terms. Sections Three and Four - Provide a framework for the program including deliverability, annual targets, load serving entities' obligations, the establishment of a Tier 2 Renewable Energy Credit (REC) priced at a level of 75% the cost of new renewables, the enabling of a process to show financial hardship in specific cases of need, and provision of an outline of procedures to implement the Tier 2 REC program at the PSC and NYSERDA. Section Five - Provides the effective date.   JUSTIFICATION: It is often noted that ratepayers in NY face some of the highest elec- tricity costs in the nation. This is largely due to utility costs, fees, and taxes, and conceals wholesale prices at historic lows. The low price of natural gas, above-market support for new renewables, proliferation of residential solar, and low demand growth have all contributed to a decline in compensation for baseload electricity generators. Recognizing this, in its draft CES, Department of Public Service Staff recommended a "Tier 2" REC program to provide support for legacy renewables. This program was eliminated without warning when the CES was released. The North Country alone contains over 500 MW of independent hydro. These facilities are long-lived and low impact, and are core infrastruc- ture, often located at the center of towns and managing water levels for lakes and reservoirs. Direct competition with natural gas, which has lower costs and no such responsibilities, is proving unsustainable. The RPS established a Maintenance Tier program for a subset of renewable generators that predated the RPS. The program does not apply to all vintage renewable resources and, even where it does has had mixed results, allowing biomass and hydro plants to close. This bill takes lessons from recent closure and provides improvements to the program to streamline the application process and fix support at a level sufficient to maintain viability. Wind facilities developed under the RPS between 2003 and 2016 were given ten-year support contracts. With electricity rates low, at the expira- tion of those contracts they must seek additional revenue. Though the NY CES does not allow existing generators to participate in procure- ments, RPS programs in neighboring states do. The location of a genera- tor does not determine where its energy is consumed or which state gets to count its production toward clean energy goals. This export threat is imminent, with many states already seeking to procure this generation and transmission lines already being sited across Lake Champlain specif- ically to deliver wind power into the ISO-NE. This bill follows the model for Tier 2 established by DPS Staff in the original CES draft, and will be available to all legacy large scale renewable generators. The compensation for Tier 2 RECs will be 75% of Tier 1. The Tier 1 price for new renewables is established by compet- itive bidding through NYSERDA-managed procurements, and reflects the additional compensation needed above available wholesale rates to make a renewable project viable. As wholesale rates rise, REC prices fall. This ensures that ratepayers will not overpay for LSRs, and will never pay to develop new generators while existing ones can be kept online for less.   PRIOR LEGISLATIVE HISTORY: 2018: A7275 - ordered to third reading rules cal.482 / S5549 - Passed Senate.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the state.   EFFECTIVE DATE: Immediately.
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A04294 LFIN:

 NO LFIN
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A04294 Chamber Video/Transcript:

6-20-19Video (@ 01:52:44)
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