NY State Senate Bill 2011-S4993

Senate Bill S4993

2011-2012 Legislative Session

Provides for the net energy metering of solar, wind, fuel cell and farm waste electric generating systems; repealer

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to energy and telecommunications
May 02, 2011	referred to energy and telecommunications

2011-S4993 (ACTIVE) - Details

See Assembly Version of this Bill:: A5553
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §66-j, rpld §66-l, Pub Serv L; amd §1020-g, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A5785
2013-2014: S3873, A6170
2015-2016: A2927
2017-2018: A6700
2019-2020: A5927

2011-S4993 (ACTIVE) - Summary

Provides for the net energy metering of solar, wind, fuel cell and farm waste electric generating systems for both residential and business customers; increases the rated capacity of eligible solar electric generating equipment to 2,000 kilowatts; provides for the metering and fees for such electric generating equipment.

2011-S4993 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4993

TITLE OF BILL:
An act
to amend the public service law and the public authorities law, in
relation to net energy metering for solar, wind, fuel cell and farm
waste electric generating systems; and to repeal section 66-l of the
public service law relating to net energy metering for residential
and/or farm service wind electric generating systems

PURPOSE:
This legislation would expand New York's net metering law by adding
fuel cells to the list of currently eligible renewable technologies,
which includes wind, solar, and farm waste electric generating
equipment; raising the size of eligible technology systems to 2
megawatts; allowing all customer classes to engage in net metering;
and removing the cap on the amount of on-site generation eligible for
net metering within each utility territory.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends 66-j of the public service law to:

Remove the word residential, allowing any customer class to engage in
net metering;

Add fuel cells to the list of eligible renewable energy technologies

and increase the size of all eligible systems to 2 megawatts for the
purpose of net metering;

Clarify that all eligible technologies can be interconnected to the
electric grid for the purpose of net metering;

Define net metering as a process that uses a single meter to register
the flow of electricity in two directions;

Require electric corporations to develop standard contracts and
tariffs providing for net metering;
and

Places responsibility for safety standards and interconnection
standards with the Public Service Commission, which is where standard
interconnection procedures are generally addressed.

Section 2 repeals section 66-1 of the public service law relating to
net energy metering for residential and/or farm service wind electric
generating systems (with wind electric generating systems covered
under section 66-j along with the other eligible technologies).

Section 3 amends subdivision (h) of section 1020-g of the public
authorities law by adding wind and fuel cells as eligible
technologies for which the Long Island Power Authority must establish
programs and policies governing the interconnection standards for the
purpose.

JUSTIFICATION:


New York has ample renewable energy resources, but has lost its
leadership position in the promotion and development of renewable
on-site generation. On-site renewable generation provides multiple
benefits in the form of clean energy production, economic
development, less pollution, reduced stress on the electric grid and
increased energy security. In order for New York to realize these
benefits, it needs to remove regulatory barriers and establish
policies in support of the development of on-site generation. A
comprehensive net metering policy is central to the effort of
building a robust market for on-site technologies sLlch as solar
power, fuel cells, wind energy and methane digesters.

Net metering is a simple, low-cost, easily administered method of
encouraging customer investment in distributed renewable energy
technologies. Examples of on-site generating systems include solar
panels on a warehouse, home or school, a wind turbine at an
industrial or municipal facility, an an aerobic methane digester at a
dairy farm or a fuel cell at an office building.

Net metering measures the difference between what is produced on-site
and the amount of electricity drawn from the electric grid. Most
users can not meet their total individual energy demand through
on-site generation and continue to receive power from the electric
grid through their utility. There are, however, times throughout the
year when the system produces more than the user needs at that point
in time. For example, a school's solar system will continue
generating electricity during the summer when the school is being
utilized less frequently. It is on these occasions that excess power
is fed back into the electric grid. Therefore, the customer-user's
meter turns backwards providing the customer-user with a credit from
the utility for this excess energy produced on site.

Currently, New York's net metering law is limited to 10 kW for
residential solar systems, 25 kW for residential wind systems, 125 kW
for on-farm wind systems and 400 kW for on-farm anaerobic digester
systems. The existing law is inadequate and discourages people from
investing in on-site, clean energy systems.

This bill is necessary to make investments in on-site renewable energy
economically feasible.
Net metering is similar to energy efficiency in that it enables the
user to use less energy from the electric grid. The utility credit
simply helps offset the on-site generator's electric costs and
represents a fair exchange for the excess power provided to the
utility, since this is power that the utility will sell to another
user at the retail rate.

An expanded net metering law in New York would help the State meet its
environmental, renewable energy and economic development goals. Net
metering ensures that homes and businesses receive a fair return on
their investment for the on-site clean energy generation that
benefits all of us through reduced air pollutant emissions, decreased
stress on the electric grid and in-state economic development.

LEGISLATIVE HISTORY:
2007-08: A.9902 Passed Assembly, Delivered to Senate, Referred to Rules
2009-10: A.5785 Referred to Energy


FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act will take effect immediately.

2011-S4993 (ACTIVE) - Bill Text download pdf

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

                                  4993

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to amend the public service law and the public authorities law,
  in relation to net energy metering for solar, wind, fuel cell and farm
  waste electric generating systems; and to repeal section 66-l  of  the
  public  service  law  relating  to net energy metering for residential
  and/or farm service wind electric generating systems

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

  Section  1.  The  section heading and subdivisions 1, 2, 3, 4 and 5 of
section 66-j of the public service law, as amended by chapter 355 of the
laws of 2009, paragraph (d) of subdivision 1 and subparagraphs  (i)  and
(iii)  of  paragraph (c) of subdivision 3 as amended by chapter 7 of the
laws of 2010, and the opening paragraph of paragraph (e) of  subdivision
1  as amended by chapter 336 of the laws of 2010, are amended to read as
follows:
  Net energy metering for [residential] solar, WIND, FUEL CELL  OR  farm
waste[,  non-residential  solar]  electric generating systems, OR micro-
combined heat and power generating equipment[,  or  fuel  cell  electric
generating  equipment].  1.  Definitions.  As  used in this section, the
following terms shall have the following meanings:
  (a) "Customer-generator" means: (i) [a residential] ANY customer of an
electric corporation, who owns or operates  solar,  WIND  OR  FUEL  CELL
electric generating equipment, OR ANY HYBRID EQUIPMENT COMPOSED OF THESE
THREE  TECHNOLOGIES located and used at his or her [residence] PREMISES;
(ii) a customer of an electric corporation, who owns  or  operates  farm
waste electric generating 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; AND (iii) [a  non-
residential  customer  of an electric corporation which owns or operates

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08906-01-1

S. 4993                             2

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[; and (v) a residential customer of an elec-
tric corporation who owns,  leases  or  operates  fuel  cell  generating
equipment located on the customer's premises].
  (b) "Net energy meter" means a meter that measures the reverse flow of
electricity  to register the difference between the electricity supplied
by an electric corporation to the customer-generator and the electricity
provided to the corporation by that customer-generator.
  (c) "Net energy metering" means the use of a net energy meter to meas-
ure, during the billing period applicable to a  customer-generator,  the
net  amount  of  electricity  supplied  by  an  electric corporation and
provided to the corporation by a customer-generator.
  (d) "Solar electric generating equipment" means a photovoltaic  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-resi-
dential customer,] with a rated capacity of not more than  two  thousand
kilowatts;  and  (ii)  that  is manufactured, installed, and operated in
accordance with applicable government and industry  standards,  that  is
connected  to the electric system and operated in [conjunction] PARALLEL
with an electric corporation's transmission and distribution facilities,
and that is operated in compliance with any standards  and  requirements
established under this section.
  (e)  "Farm  waste  electric generating equipment" means equipment that
generates  electric  energy  from  biogas  produced  by  the   anaerobic
digestion  of  agricultural  waste,  such  as  livestock manure, farming
wastes and food processing wastes with a rated capacity of not more than
[one] TWO thousand kilowatts, that is:
  (i) manufactured, installed, and operated in accordance with  applica-
ble government and industry standards;
  (ii) connected to the electric system and operated in conjunction with
an electric corporation's transmission and distribution facilities;
  (iii)  operated  in  compliance  with  any  standards and requirements
established under this section;
  (iv) fueled at a minimum of ninety  percent  on  an  annual  basis  by
biogas  produced from the anaerobic digestion of agricultural waste such
as livestock manure materials, crop residues, and food processing waste;
and
  (v) fueled by biogas generated by anaerobic digestion  with  at  least
fifty  percent by weight of its feedstock being livestock manure materi-
als on an annual basis.
  (f) "Micro-combined heat and  power  generating  equipment"  means  an
integrated,  cogenerating  building  heating and electrical power gener-
ation system, operating on any fuel and of any applicable  engine,  fuel
cell,  or  other technology, with a rated capacity of at least one kilo-
watt and not more than ten kilowatts electric  and  any  thermal  output
that  at  full  load  has  a  design  total  fuel  use efficiency in the
production of heat and electricity of not less than eighty percent,  and
annually  produces at least two thousand kilowatt hours of useful energy
in the form of electricity that may work  in  combination  with  supple-
mental  or  parallel conventional heating systems, that is manufactured,
installed and operated in  accordance  with  applicable  government  and
industry  standards,  that is connected to the electric system and oper-
ated in conjunction with  an  electric  corporation's  transmission  and
distribution facilities.

S. 4993                             3

  (g)  "Fuel  cell  electric  generating equipment" means a solid oxide,
molten carbonate, proton exchange membrane or phosphoric acid fuel  cell
with a combined rated capacity of not more than [ten] TWO THOUSAND kilo-
watts  that  is  manufactured, installed and operated in accordance with
applicable  government  and industry standards, that is connected to the
electric system and operated in parallel with an electric  corporation's
transmission  and  distribution  facilities,  and  that  is  operated in
compliance with any standards and requirements  established  under  this
section.
  (H)  "WIND  ELECTRIC  GENERATING  EQUIPMENT" MEANS A WIND GENERATOR OR
GENERATORS WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TWO  THOUSAND
KILOWATTS  THAT  IS  MANUFACTURED,  INSTALLED AND OPERATED IN ACCORDANCE
WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED  TO
THE  ELECTRIC  SYSTEM  AND  OPERATED IN PARALLEL WITH AN ELECTRIC CORPO-
RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS  OPERATED
IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS
SECTION.
  (I)  "ELECTRIC CORPORATION" MEANS ANY PUBLIC OR PRIVATELY OWNED ENTITY
THAT OFFERS RETAIL ELECTRICAL SERVICE TO END-USE ELECTRIC CONSUMERS.
  (J) "ELIGIBLE TECHNOLOGIES" MEANS THE SOLAR, WIND, FUEL CELL  OR  FARM
WASTE ELECTRIC GENERATING EQUIPMENT.
  2.  Interconnection  and  net energy metering. An electric corporation
shall provide for the interconnection of [solar and farm waste  electric
generating equipment] ELIGIBLE TECHNOLOGIES, AND micro-combined heat and
power generating equipment [and fuel cell electric 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.
  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 owned,  leased  or
operated  by  customer-generators  in  the corporation's service area is
equivalent to one 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

S. 4993                             4

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 located and used at
his  or  her residence, or a non-residential customer-generator who owns
or operates solar electric generating equipment with a rated capacity of
not more than twenty-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 with a  rated  capacity  of
more  than  twenty-five kilowatts located and used at its premises, such
cost shall be as determined  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, BUT NOT LIMITED TO, 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.
  4.  Rates.  An  electric  corporation shall use net energy metering to
measure and charge for the net electricity supplied by  the  corporation
and  provided  to  the corporation by a customer-generator, according to
these requirements:
  (a) In the event that the amount of electricity supplied by the corpo-
ration during the billing  period  exceeds  the  amount  of  electricity
provided  by  a  customer-generator,  the  corporation  shall charge the
customer-generator for the net electricity supplied at the same rate per
kilowatt hour applicable to service provided to other customers  in  the
same service class which do not generate electricity onsite.
  (b)  In the event that the amount of electricity produced by a custom-
er-generator during the billing period exceeds the amount of electricity
used by the customer-generator, the corporation shall apply a credit  to
the  next  bill  for service to the customer-generator for the net elec-
tricity provided at the  same  rate  per  kilowatt  hour  applicable  to
service  provided  to other customers in the same service class which do
not generate electricity onsite,  except  for  micro-combined  heat  and
power  or  fuel  cell  customer-generators,  who will be credited at the
corporation's avoided costs. The avoided cost credit provided to  micro-
combined heat and power or fuel cell customer-generators shall be treat-
ed  for  ratemaking  purposes as a purchase of electricity in the market
that is includable in commodity costs.
  (c) At the end of the year or annualized over the period that  service
is  supplied  by  means  of  net  energy metering, the corporation shall
promptly issue payment at its avoided cost to the customer-generator, as
defined in subparagraph (i) or (ii) of paragraph (a) of subdivision  one
of  this  section,  for the value of any remaining credit for the excess

S. 4993                             5

electricity produced during the year or over the  annualized  period  by
the customer-generator.
  (d)  In  the event that the corporation imposes charges based on kilo-
watt demand on customers who are  in  the  same  service  class  as  the
customer-generator  but  which  do not generate electricity on site, the
corporation may impose the same charges at the same rates to the custom-
er-generator, provided, however,  that  the  kilowatt  demand  for  such
demand  charges  is  determined  by the maximum measured kilowatt demand
actually supplied by the corporation to  the  customer-generator  during
the billing period.
  (E)  NET  ENERGY  METERING  SHALL BE ACCOMPLISHED USING A SINGLE METER
CAPABLE OF REGISTERING THE FLOW OF ELECTRICITY  IN  TWO  DIRECTIONS.  AN
ADDITIONAL  METER  OR  METERS TO MONITOR THE FLOW OF ELECTRICITY IN EACH
DIRECTION  MAY BE INSTALLED WITH THE CONSENT OF THE  CUSTOMER-GENERATOR,
AT  THE EXPENSE OF THE ELECTRIC CORPORATION, AND THE ADDITIONAL METERING
SHALL BE USED ONLY TO PROVIDE THE INFORMATION  NECESSARY  TO  ACCURATELY
BILL  OR CREDIT THE CUSTOMER-GENERATOR PURSUANT TO PARAGRAPH (F) OF THIS
SUBDIVISION, OR TO COLLECT SYSTEM PERFORMANCE INFORMATION ON THE  ELIGI-
BLE  TECHNOLOGY  FOR RESEARCH PURPOSES. IF THE EXISTING ELECTRICAL METER
OF AN ELIGIBLE CUSTOMER-GENERATOR IS NOT CAPABLE OF MEASURING  THE  FLOW
OF  ELECTRICITY  IN  TWO DIRECTIONS AND PROVIDED THE REASON THE METER IS
NOT CAPABLE OF MEASURING THE FLOW  IN  TWO  DIRECTIONS  IS  NOT  RELATED
EITHER  TO  A  MECHANICAL DEVICE INSTALLED BY AN ELECTRIC CORPORATION OR
SUCH CORPORATION'S SELECTION OF A METER  WITHOUT  THIS  CAPABILITY  WHEN
OTHER  METERS  CAPABLE  OF  MEASURING  THE  FLOW  OF  ELECTRICITY IN TWO
DIRECTIONS WERE AVAILABLE TO THE ELECTRIC CORPORATION, THE CUSTOMER-GEN-
ERATOR SHALL BE RESPONSIBLE FOR ALL EXPENSES INVOLVED IN PURCHASING  AND
INSTALLING  A  METER  THAT IS ABLE TO MEASURE THE FLOW OF ELECTRICITY IN
TWO DIRECTIONS.  IF AN ADDITIONAL METER OR METERS ARE INSTALLED, THE NET
ENERGY METERING CALCULATION SHALL YIELD A RESULT IDENTICAL TO THAT OF  A
SINGLE METER.
  (F)  EVERY  ELECTRIC  CORPORATION SHALL DEVELOP A STANDARD CONTRACT OR
TARIFF PROVIDING FOR NET ENERGY METERING, AND SHALL MAKE  THIS  CONTRACT
AVAILABLE  TO ELIGIBLE CUSTOMER-GENERATORS, UPON REQUEST. EVERY ELECTRIC
CORPORATION SHALL ENSURE THAT REQUESTS FOR ESTABLISHMENT OF  NET  ENERGY
METERING ARE PROCESSED IN A TIME PERIOD NOT EXCEEDING THAT FOR SIMILARLY
SITUATED  CUSTOMERS  REQUESTING  NEW ELECTRIC SERVICE, BUT NOT TO EXCEED
ONE MONTH FROM THE DATE THE ELECTRIC CORPORATION  RECEIVES  A  COMPLETED
APPLICATION  FORM  FROM  AN  ELIGIBLE CUSTOMER-GENERATOR. IF AN ELECTRIC
CORPORATION IS UNABLE TO PROCESS THE REQUEST WITHIN THE ALLOWABLE  TIME-
FRAME,  THE  ELECTRIC CORPORATION SHALL NOTIFY THE CUSTOMER-GENERATOR OF
THE REASON FOR ITS INABILITY TO PROCESS THE REQUEST  AND  THE  DATE  THE
REQUEST  WILL  BE  COMPLETED.  EVERY ELECTRIC CORPORATION SHALL MAKE ALL
NECESSARY FORMS AND CONTRACTS FOR  NET  ENERGY  METERING  AVAILABLE  FOR
DOWNLOAD FROM THE INTERNET.
  (G)  EACH  NET  ENERGY METERING CONTRACT OR TARIFF SHALL BE IDENTICAL,
WITH RESPECT TO RATE STRUCTURE,  ALL  RETAIL  RATE  COMPONENTS  AND  ANY
MONTHLY  CHARGES,  TO  THE CONTRACT OR TARIFF TO WHICH THE SAME CUSTOMER
WOULD BE ASSIGNED IF SUCH CUSTOMER WAS NOT AN ELIGIBLE  CUSTOMER-GENERA-
TOR,  EXCEPT  THAT  ELIGIBLE  CUSTOMER-GENERATORS  SHALL NOT BE ASSESSED
STANDBY  CHARGES  ON  THE  ELECTRICAL   GENERATING   CAPACITY   OR   THE
KILOWATT-HOUR  PRODUCTION OF AN ELIGIBLE TECHNOLOGY. THE CHARGES FOR ALL
RETAIL RATE COMPONENTS FOR ELIGIBLE CUSTOMER-GENERATORS SHALL  BE  BASED
EXCLUSIVELY  ON  THE  CUSTOMER-GENERATOR'S NET KILOWATT-HOUR CONSUMPTION
OVER A TWELVE MONTH PERIOD, WITHOUT REGARD TO  THE  CUSTOMER-GENERATOR'S
CHOICE  OF  ELECTRIC  CORPORATION.  ANY NEW OR ADDITIONAL DEMAND CHARGE,

S. 4993                             6

STANDBY CHARGE, CUSTOMER CHARGE, MINIMUM MONTHLY CHARGE, INTERCONNECTION
CHARGE   OR   OTHER   CHARGE   THAT   WOULD   INCREASE    AN    ELIGIBLE
CUSTOMER-GENERATOR'S  COSTS  BEYOND THOSE OF OTHER CUSTOMERS IN THE RATE
CLASS  TO  WHICH  THE  ELIGIBLE  CUSTOMER-GENERATOR  WOULD  OTHERWISE BE
ASSIGNED ARE CONTRARY TO THE INTENT OF THIS SECTION, AND SHALL NOT  FORM
A PART OF NET ENERGY METERING CONTRACTS OR TARIFFS.
  (H)  FOR ALL ELIGIBLE CUSTOMER-GENERATORS TAKING SERVICE UNDER TARIFFS
EMPLOYING "TIME OF USE" RATES, ANY NET MONTHLY CONSUMPTION OF  ELECTRIC-
ITY SHALL BE CALCULATED ACCORDING TO THE TERMS OF THE CONTRACT OR TARIFF
TO  WHICH  THE  SAME CUSTOMER WOULD BE ASSIGNED TO OR BE ELIGIBLE FOR IF
THE CUSTOMER WAS NOT AN ELIGIBLE  CUSTOMER-GENERATOR.  WHEN  THOSE  SAME
CUSTOMER-GENERATORS  ARE  NET GENERATORS DURING ANY DISCRETE TIME OF USE
PERIOD, THE NET KILOWATT-HOURS PRODUCED SHALL  BE  VALUED  AT  THE  SAME
PRICE  PER  KILOWATT-HOUR  AS  THE ELECTRIC CORPORATION WOULD CHARGE FOR
RETAIL KILOWATT-HOUR SALES DURING THAT SAME TIME OF USE PERIOD AND  THAT
VALUE  SHALL  BE  APPLIED AS A CREDIT TO ANY OF THE DISCRETE TIME OF USE
PERIODS UNDER THE TARIFF. IF THE ELIGIBLE CUSTOMER-GENERATOR'S  TIME  OF
USE ELECTRICAL METER IS UNABLE TO MEASURE THE FLOW OF ELECTRICITY IN TWO
DIRECTIONS,  THE  PROVISIONS  OF PARAGRAPH (D) OF THIS SUBDIVISION SHALL
APPLY.
  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 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  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.
  (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 electric
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:

S. 4993                             7

  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.] PARAGRAPH  (B)  OF
THIS SUBDIVISION, THE COMMISSION SHALL ESTABLISH STANDARDS FOR INTERCON-
NECTION OF GENERATORS, TAKING INTO ACCOUNT APPLICABLE INDUSTRY STANDARDS
INCLUDING  IEEE  1541,  AND  BEST  PRACTICES  INCLUDED IN THE INTERSTATE
RENEWABLE ENERGY COUNCIL'S MODEL INTERCONNECTION  RULES  MR-12005.  SUCH
STANDARDS  SHALL  NOT BE MORE RESTRICTIVE OF INTERCONNECTION THAN STAND-
ARDS ESTABLISHED IN FERC ORDERS 2006 AND 2006A AS OF THE EFFECTIVE  DATE
OF PARAGRAPH (B) OF THIS SUBDIVISION.
  (B)  THE COMMISSION SHALL PROMULGATE REGULATIONS ENSURING THAT SIMPLI-
FIED CONTRACTS WILL BE USED FOR THE INTERCONNECTION OF  GENERATORS  THAT
HAVE  A  PRODUCTION  CAPACITY  NOT  EXCEEDING TWO THOUSAND KILOWATTS AND
SHALL CONSIDER  THE  BEST  PRACTICES  FOR  CONSUMER  FRIENDLY  CONTRACTS
ADOPTED  BY  NATIONAL  ASSOCIATIONS  OF  STATE  UTILITY REGULATORS. SUCH
CONTRACTS SHALL NOT REQUIRE LIABILITY OR OTHER INSURANCE  IN  EXCESS  OF
WHAT IS TYPICALLY CARRIED BY CUSTOMER-GENERATORS FOR GENERAL LIABILITY.
  S 2. Section 66-l of the public service law is REPEALED.
  S  3. 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, WIND, FUEL CELL OR FARM WASTE elec-
tric 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)] CUSTOMER-GENERATORS, (II)
micro-combined heat and power  generating  equipment  owned,  leased  or
operated  by  residential  customers, and [(E)] (III) fuel cell electric
generating equipment owned, leased or operated by residential customers,
and for net energy metering consistent with section sixty-six-j  of  the
public  service  law,  to  increase the efficiency 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 customer-generators and for
net energy metering consistent with section sixty-six-l  of  the  public
service law].
  S 4. This act shall take effect immediately.

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