S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  28--A
                                                          Cal. No. 1

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of A. CAHILL, MAGEE, GUNTHER, RUSSELL -- Multi-Spon-
  sored by -- M. of A.  CALHOUN,  DUPREY,  P. LOPEZ  --  read  once  and
  referred  to  the Committee on Energy -- passed by Assembly and deliv-
  ered to the Senate, recalled from the Senate, vote reconsidered,  bill
  amended,  ordered reprinted, retaining its place on the order of third
  reading

AN ACT to amend the public service law and the public  authorities  law,
  in relation to net energy metering with micro-hydroelectric generating
  equipment

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  The section heading and paragraph (a) of subdivision 1  of
section 66-j of the public service law, as amended by chapter 355 of the
laws  of  2009, are amended and a new paragraph (h) is added to subdivi-
sion 1 to read as follows:
  Net energy metering for residential solar, farm waste, non-residential
solar electric generating systems, micro-combined heat and power  gener-
ating  equipment,  [or]  fuel  cell  electric  generating equipment, AND
MICRO-HYDROELECTRIC GENERATING EQUIPMENT.
  (a) "Customer-generator" means: (i) a residential customer of an elec-
tric corporation, who owns or operates solar electric generating  equip-
ment  located  and  used  at his or her residence; (ii) a customer of an
electric corporation, who owns or operates farm waste electric  generat-
ing  equipment  located and used at his or her "farm operation," as such
term is defined in subdivision eleven of section three  hundred  one  of
the  agriculture and markets law; (iii) a non-residential customer of an
electric corporation which owns or operates  solar  electric  generating
equipment  located and used at its premises; (iv) a residential customer
of an electric corporation who owns, leases or  operates  micro-combined
heat  and power generating equipment located on the customer's premises;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD00896-02-1

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[and] (v) a residential customer of an electric  corporation  who  owns,
leases or operates fuel cell generating equipment located on the custom-
er's  premises;  (VI) A RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION,
WHO  OWNS  OR  OPERATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT LOCATED
AND USED AT HIS OR HER RESIDENCE; AND (VII) A  NON-RESIDENTIAL  CUSTOMER
OF  AN  ELECTRIC  CORPORATION WHICH OWNS OR OPERATES MICRO-HYDROELECTRIC
GENERATING EQUIPMENT LOCATED AND USED AT ITS PREMISES.
  (H) "MICRO-HYDROELECTRIC GENERATING EQUIPMENT" MEANS  A  HYDROELECTRIC
SYSTEM  (I)  (A)  IN  THE  CASE  OF A RESIDENTIAL CUSTOMER, WITH A RATED
CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS; AND (B) IN THE CASE  OF
A  NON-RESIDENTIAL  CUSTOMER, WITH A RATED CAPACITY OF NOT MORE THAN TWO
THOUSAND KILOWATTS; AND (II) THAT IS MANUFACTURED, INSTALLED, AND  OPER-
ATED  IN  ACCORDANCE  WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS,
THAT IS CONNECTED TO THE ELECTRIC SYSTEM  AND  OPERATED  IN  CONJUNCTION
WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES,
AND  THAT  IS OPERATED IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS
ESTABLISHED UNDER THIS SECTION.
  S 2. Subdivision 2 of section 66-j  of  the  public  service  law,  as
amended  by  chapter  355  of  the  laws  of 2009, is amended to read as
follows:
  2. Interconnection and net energy metering.  An  electric  corporation
shall  provide  for the interconnection of solar and farm waste electric
generating equipment, micro-combined heat and power generating equipment
[and], fuel cell electric generating equipment  AND  MICRO-HYDROELECTRIC
GENERATING  EQUIPMENT  owned or operated by a customer-generator and for
net energy metering, provided that the customer-generator enters into  a
net  energy  metering contract with the corporation or complies with the
corporation's net energy metering schedule and complies  with  standards
and requirements established under this section.
  S  3.  Subdivision  3  of  section  66-j of the public service law, as
amended by chapter 355 of the laws of 2009, subparagraphs (i) and  (iii)
of  paragraph  (c) as amended by chapter 7 of the laws of 2010 and para-
graph (e) as added by chapter 35 of the laws of 2011, is amended to read
as follows:
  3. Conditions of service. (a) (i) On or before three months after  the
effective  date of this section, each electric corporation shall develop
a model contract and file a schedule  that  establishes  consistent  and
reasonable  rates,  terms  and  conditions  for  net  energy metering to
customer-generators, according to the requirements of this section.  The
commission  shall render a decision within three months from the date on
which the schedule is filed.
  (ii) On or before three  months  after  the  effective  date  of  this
subparagraph,  each  electric corporation shall develop a model contract
and file a schedule that establishes consistent  and  reasonable  rates,
terms and conditions for net energy metering to non-residential customer
generators,  according  to the requirements of this section. The commis-
sion shall render a decision within three months of the  date  on  which
the schedule is filed.
  (iii)  Each electric corporation shall make such contract and schedule
available to customer-generators on a first come,  first  served  basis,
until the total rated generating capacity for solar and farm waste elec-
tric  generating  equipment,  micro-combined  heat  and power generating
equipment [and], fuel cell electric generating equipment  AND  MICRO-HY-
DROELECTRIC  GENERATING EQUIPMENT owned, leased or operated by customer-
generators in the  corporation's  service  area  is  equivalent  to  one

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percent  of  the corporation's electric demand for the year two thousand
five, as determined by the department.
  (b)  Nothing  in  this  subdivision  shall prohibit a corporation from
providing net energy metering  to  additional  customer-generators.  The
commission  shall  have the authority, after January first, two thousand
twelve, to increase the percent limits if it determines that  additional
net energy metering is in the public interest.
  (c)  In  the event that the electric corporation determines that it is
necessary to install a dedicated transformer or transformers,  or  other
equipment  to  protect  the  safety  and  adequacy  of  electric service
provided to other customers, a customer-generator shall pay the electric
corporation's actual costs of installing the  transformer  or  transfor-
mers, or other equipment:
  (i)  In  the  case  of a customer-generator who owns or operates solar
electric generating equipment, micro-combined heat and power  generating
equipment [or], fuel cell electric generating equipment OR MICRO-HYDROE-
LECTRIC  GENERATING  EQUIPMENT located and used at his or her residence,
or a non-residential customer-generator who owns or operates solar elec-
tric generating equipment with a rated capacity of not more  than  twen-
ty-five  kilowatts,  up  to  a  maximum  amount  of  three hundred fifty
dollars;
  (ii) In the case of a customer-generator who  owns  or  operates  farm
waste electric generating equipment located and used at his or her "farm
operation,"  up  to  a  total  amount of five thousand dollars per "farm
operation"; and
  (iii) In the case of a non-residential customer-generator who owns  or
operates  solar  electric  generating  equipment  OR MICRO-HYDROELECTRIC
GENERATING EQUIPMENT with a rated  capacity  of  more  than  twenty-five
kilowatts located and used at its premises, such cost shall be as deter-
mined by the electric corporation subject to review, upon the request of
such customer-generator, by the department.
  (d)  An  electric  corporation  shall  impose  no other charge or fee,
including back-up, stand by and demand charges, for the provision of net
energy metering to a customer-generator, except as provided in paragraph
(d) of subdivision four of this section.
  (e) A customer who owns or operates a farm operation as such  term  is
defined  in subdivision eleven of section three hundred one of the agri-
culture and markets law,  or  a  non-residential  customer-generator  as
defined  by  subparagraph  (iii)  of paragraph (a) of subdivision one of
this section that locates solar electric generating  equipment  or  farm
waste  electric generating equipment with a net energy meter on property
owned or leased by  such  customer-generator  may  designate  all  or  a
portion  of  the  net  metering  credits  generated by such equipment to
meters at any property owned or leased by such customer-generator within
the service territory of the same  electric  corporation  to  which  the
customer-generator's  net  energy  meters  are  interconnected and being
within the same load zone as determined by the location  based  marginal
price  as  of  the  date of initial request by the customer-generator to
conduct net metering. The electric corporation will credit the  accounts
of  the customer by applying any credits to the highest use meter first,
then subsequent highest use meters until all such credits are attributed
to the customer. Any excess credits shall be carried over to the follow-
ing month.
  S 4. Subdivision 5 of section 66-j  of  the  public  service  law,  as
amended  by  chapter  355  of  the  laws  of 2009, is amended to read as
follows:

A. 28--A                            4

  5. Safety standards. (a) On or before three months after the effective
date of this section, each electric corporation shall  establish  stand-
ards  that are necessary for net energy metering and the interconnection
of residential  solar  or  farm  waste  electric  generating  equipment,
micro-combined  heat  and power generating equipment and fuel cell elec-
tric generating equipment AND MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT
to  its system and that the commission shall determine are necessary for
safe and adequate service and further the public  policy  set  forth  in
this section. Such standards may include but shall not be limited to:
  (i)  equipment  necessary  to  isolate  automatically  the residential
solar, farm waste, micro-combined heat and power and fuel cell  electric
generating  system AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT from the
utility system for voltage and frequency deviations; and
  (ii) a manual lockable disconnect switch provided by the customer-gen-
erator which shall be located on the outside of the customer's  premises
and  externally  accessible for the purpose of isolating the residential
solar and farm waste electric generating equipment AND  MICRO-HYDROELEC-
TRIC GENERATING EQUIPMENT.
  (b)  Upon  its  own motion or upon a complaint, the commission, or its
designated representative, may investigate and make a  determination  as
to  the  reasonableness and necessity of the standards or responsibility
for compliance with the standards.
  (i) In the case of a customer-generator who  owns  or  operates  solar
electric  generating equipment located and used at his or her residence;
an electric corporation may not require a customer-generator  to  comply
with  additional  safety  or  performance  standards, perform or pay for
additional tests, or purchase additional  liability  insurance  provided
that  the residential solar or farm waste electric generating equipment,
micro-combined heat and power generating equipment [or], fuel cell elec-
tric generating equipment OR  MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT
meets the safety standards established pursuant to this paragraph.
  (ii)  In  the  case  of a customer-generator who owns or operates farm
waste electric generating equipment located and used at his or her "farm
operation," an electric corporation may not require a customer-generator
to comply with additional safety or performance  standards,  perform  or
pay  for  additional  tests,  or purchase additional liability insurance
provided that:
  1. the electric generating equipment meets the safety standards estab-
lished pursuant to this paragraph; and
  2. the total rated generating capacity (measured in kW) of farm  waste
electric  generating equipment that provides electricity to the electric
corporation through the same local feeder line, does not  exceed  twenty
percent of the rated capacity of that local feeder line.
  (iii)  In  the  event that the total rated generating capacity of farm
waste electric generating equipment that  provides  electricity  to  the
electric  corporation  through the same local feeder line exceeds twenty
percent of the rated capacity of the local  feeder  line,  the  electric
corporation may require the customer-generator to comply with reasonable
measures to ensure safety of that local feeder line.
  S  5.  Subdivision  5-a  of section 66-j of the public service law, as
amended by chapter 355 of the laws  of  2009,  is  amended  to  read  as
follows:
  5-a.  Safety  standards;  non-residential  solar  electric  generating
equipment AND MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT.    (a)  On  or
before  three  months after the effective date of this subdivision, each
electric corporation shall establish standards that  are  necessary  for

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net  energy  metering  and  the interconnection of non-residential solar
electric generating equipment OR MICRO-HYDROELECTRIC  GENERATING  EQUIP-
MENT to its system and that the commission shall determine are necessary
for safe and adequate service and further the public policy set forth in
this section. Such standards may include but shall not be limited to:
  (i)  equipment necessary to isolate automatically the solar generating
system OR MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT  from  the  utility
system for voltage and frequency deviations; and
  (ii) a manual lockable disconnect switch provided by the customer-gen-
erator which shall be located on the outside of the customer-generator's
premises  and  externally  accessible  for  the purpose of isolating the
solar electric generating equipment  OR  MICRO-HYDROELECTRIC  GENERATING
EQUIPMENT.
  (b)  In  the  event  that the total rated generating capacity of solar
electric generating equipment OR MICRO-HYDROELECTRIC  GENERATING  EQUIP-
MENT  that  provides electricity to the electric corporation through the
same local feeder line exceeds twenty percent of the rated  capacity  of
the  local feeder line, the electric corporation may require the custom-
er-generator to comply with reasonable measures to ensure safety of  the
local feeder line.
  (c)  Unless otherwise determined to be necessary by the commission, an
electric corporation may not require a customer-generator to comply with
additional safety or performance standards, perform  or  pay  for  addi-
tional  tests,  or purchase additional liability insurance provided that
the solar electric generating equipment OR MICRO-HYDROELECTRIC  GENERAT-
ING  EQUIPMENT  meets  the safety standards established pursuant to this
subdivision.
  (d) Upon its own motion or upon a complaint, the  commission,  or  its
designated  representative,  may investigate and make a determination as
to the reasonableness and necessity of the standards  or  responsibility
for compliance with the standards.
  S  6. Subdivision (h) of section 1020-g of the public authorities law,
as amended by chapter 355 of the laws of 2009, is  amended  to  read  as
follows:
  (h)  To  implement  programs  and policies designed to provide for the
interconnection of: (i) (A) solar electric generating equipment owned or
operated by residential customers, (B) farm  waste  electric  generating
equipment  owned  or operated by customer-generators, (C) solar electric
generating equipment owned or operated by non-residential customers, (D)
micro-combined heat and power  generating  equipment  owned,  leased  or
operated by residential customers, [and] (E) fuel cell electric generat-
ing  equipment  owned,  leased or operated by residential customers, AND
(F) MICRO-HYDROELECTRIC GENERATING EQUIPMENT OWNED, LEASED  OR  OPERATED
BY  CUSTOMER-GENERATORS  and  for  net  energy  metering consistent with
section sixty-six-j of the public service law, to increase the efficien-
cy of energy end use, to shift demand from periods  of  high  demand  to
periods of low demand and to facilitate the development of cogeneration;
and (ii) wind electric generating equipment owned or operated by custom-
er-generators  and  for  net  energy  metering  consistent  with section
sixty-six-l of the public service law.
  S 7. This act shall take effect immediately.