Section 21-106. Co-generation, small hydro and alternate energy production facilities

1. For the purposes of this article:
    a. The term "co-generation facility" shall include any  facility  with
  an electric generating capacity of up to eighty megawatts, together with
  any related facilities located at the same project site, which is fueled
  by coal, gas, wood, alcohol, solid wastes, refuse-derived fuel, water or
  oil,  to the extent any such oil fueled facility was fueled by oil prior
  to the effective date of this article and there is no  increase  in  the
  amount  of  oil  used  at the facility or to the extent oil is used as a
  backup fuel for such facility, and which simultaneously or  sequentially
  produces  either  electricity  or  shaft  horsepower  and useful thermal
  energy.
    b. The term "alternate energy production facility" shall  include  any
  solar, wind turbine, waste management, resource recovery, refuse-derived
  fuel  or  wood  burning  facility,  together with any related facilities
  located at the same project site, with an electric  generating  capacity
  of  up  to  eighty  megawatts, which produces electricity, gas or useful
  thermal energy.
    c. The term "small hydro facility" shall include (i) any hydroelectric
  facility of up to eighty megawatts at an existing dam, together with any
  related facilities located  at  the  same  project  site,  or  (ii)  any
  hydroelectric facility of up to two and one-half megawatts that requires
  the  construction  of  a  new  dam, together with any related facilities
  located at the same project site; provided however, that such term shall
  not include any such facility within either the Adirondack Park  or  the
  Catskill Park.
    d.  The  term  "related facilities" shall mean any land, work, system,
  building, improvement, instrumentality or thing necessary or  convenient
  to  the  construction,  completion  or  operation  of any co-generation,
  alternate energy production or small hydro  facility  and  include  also
  such  transmission  or  distribution  facilities  as may be necessary to
  conduct electricity, gas or useful thermal energy to users located at or
  near a project site.
    2. Notwithstanding any other provision of law other  than  the  public
  service   law,   no   state  department,  board,  agency,  authority  or
  commission, and no political subdivision, municipality,  or  any  agency
  thereof   may   require  any  approval,  consent,  permit,  certificate,
  statement, report or other condition for the construction  or  operation
  of:  (a)  a  co-generation or alternate energy production facility, when
  such facilities are located in any area of the state  other  than  in  a
  city  of one million persons or more or other than within the boundaries
  of the Adirondack Park and Catskill Park other than  those  provided  by
  otherwise  applicable  state  laws  (i)  for the protection of employees
  engaged in the construction and operation of any such facility  or  (ii)
  for  protection  of  freshwater  or  tidal  wetlands or other than those
  necessary to comply with local zoning or building laws or ordinances  or
  other  than  those  issued by a state agency pursuant to a delegation of
  authority pursuant to federal law or other than article  eight,  article
  nineteen,  article  twenty-seven or title five of article fifteen of the
  environmental conservation law; or (b) a  small  hydro  facility,  other
  than those provided by otherwise applicable state law for the protection
  of  fresh water wetlands or of employees engaged in the construction and
  operation of any such facility or other than those necessary  to  comply
  with  local  zoning  and building laws or ordinances or other than those
  issued by a state agency pursuant to a delegation of authority  pursuant
  to  federal  law,  or  other than article eight or title five of article
  fifteen of the environmental conservation law; provided,  however,  that
  construction  or  operation  of  a  small  hydro  facility  shall not be

  identified by the  commissioner  of  environmental  conservation  as  an
  action  or  class of actions that is likely to require preparation of an
  environmental impact statement pursuant to such article eight.
    3.  Nothing  herein  shall  be  construed to exempt any co-generation,
  small hydro or alternate energy production  facility  from  meeting  any
  applicable requirement of federal law.
    4.  Any owner or operator of a co-generation, small hydro or alternate
  energy production facility constructed and placed  in  operation  on  or
  after  June  twenty-sixth, nineteen hundred eighty shall comply with the
  rules and regulations of the state energy office with respect to matters
  affecting public health and safety provided, however, that such rules or
  regulations shall  not  apply  to  any  such  facilities  which  produce
  electricity, gas or useful thermal energy for on-site residential use in
  residential  dwellings  of four or fewer units. The state energy office,
  in consultation with the public  service  commission,  shall  promulgate
  rules  and  regulations  to  implement  this  section  by January first,
  nineteen hundred eighty-one.
    5. The maximum penalty which may  be  recovered  pursuant  to  section
  5-119  of  this  chapter  for  a  continuing  violation  of  any rule or
  regulation promulgated by the office pursuant  to  subdivision  four  of
  this section shall be ten thousand dollars.