NY State Senate Bill 2013-S3873

Senate Bill S3873

2013-2014 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 08, 2014	referred to energy and telecommunications
Feb 26, 2013	referred to energy and telecommunications

2013-S3873 (ACTIVE) - Details

See Assembly Version of this Bill:: A6170
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Rpld §§66-j & 66-l, add §66-j, Pub Serv L; amd §1020-g, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A5785
2011-2012: S4993, A5553
2015-2016: A2927
2017-2018: A6700
2019-2020: A5927

2013-S3873 (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.

2013-S3873 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3873

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
sections 66-j and 66-l of the  public  service  law  relating  to  net
energy metering

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  1  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 2 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 such 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:        01/04/12   Referred   to   energy   and
telecommunications

FISCAL IMPLICATIONS:  None.

EFFECTIVE DATE:  This act will take effect immediately.

2013-S3873 (ACTIVE) - Bill Text download pdf

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

                                  3873

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 26, 2013
                               ___________

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  sections  66-j  and
  66-l of the public service law relating to net energy metering

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

  Section 1. Sections 66-j and  66-l  of  the  public  service  law  are
REPEALED and a new section 66-j is added to read as follows:
  S  66-J.  NET ENERGY METERING FOR SOLAR, WIND, FUEL CELL OR FARM WASTE
ELECTRIC GENERATING SYSTEMS, OR MICRO-COMBINED HEAT AND POWER GENERATING
EQUIPMENT, AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT. 1. DEFINITIONS.
AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL  HAVE  THE  FOLLOWING
MEANINGS:
  (A) "CUSTOMER-GENERATOR" MEANS: (I) ANY CUSTOMER OF AN ELECTRIC CORPO-
RATION,  WHO OWNS OR OPERATES SOLAR, WIND OR FUEL CELL ELECTRIC GENERAT-
ING EQUIPMENT, OR ANY  HYBRID  EQUIPMENT  OF  THESE  THREE  TECHNOLOGIES
LOCATED  AND USED AT HIS OR HER PREMISES; (II) A CUSTOMER OF AN ELECTRIC
CORPORATION, WHO OWNS OR OPERATES FARM WASTE ELECTRIC GENERATING  EQUIP-
MENT  LOCATED  AND  USED AT HIS OR HER "FARM OPERATION," AS SUCH TERM IS
DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE  AGRI-
CULTURE  AND  MARKETS  LAW;  (III) 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; (IV) A RESIDEN-
TIAL CUSTOMER OF AN ELECTRIC CORPORATION, WHO OWNS OR OPERATES MICRO-HY-
DROELECTRIC  GENERATING  EQUIPMENT  LOCATED AND USED AT HIS OR HER RESI-
DENCE; AND (V) A NON-RESIDENTIAL CUSTOMER  OF  AN  ELECTRIC  CORPORATION
WHICH  OWNS OR OPERATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT LOCATED
AND USED AT ITS PREMISES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07273-01-3

S. 3873                             2

  (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) 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 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
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.
  (G) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS:
  (I) A SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOS-
PHORIC ACID FUEL CELL WITH A COMBINED 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 PARALLEL WITH AN ELECTRIC CORPORATION'S
TRANSMISSION AND  DISTRIBUTION  FACILITIES,  AND  THAT  IS  OPERATED  IN

S. 3873                             3

COMPLIANCE  WITH  ANY  STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS
SECTION.
  (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.
  (I)  "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.
  (J)  "ELECTRIC CORPORATION" MEANS ANY PUBLIC OR PRIVATELY OWNED ENTITY
THAT OFFERS RETAIL ELECTRICAL SERVICE TO END-USE ELECTRIC CONSUMERS.
  (K) "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   ELIGIBLE   TECHNOLOGIES,
MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT, AND MICRO-HYDROELEC-
TRIC  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)  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.
  (B)  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.
  (C)  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 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

S. 3873                             4

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.
  (D)  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 (V) OF PARAGRAPH (A) OF SUBDIVISION ONE OF  THIS
SECTION THAT LOCATES MICRO-HYDROELECTRIC 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 FOLLOWING MONTH.
  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
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

S. 3873                             5

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,
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.

S. 3873                             6

  (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
WHICH THE SAME CUSTOMER WOULD BE ASSIGNED TO OR BE ELIGIBLE FOR  IF  THE
CUSTOMER WAS NOT AN ELIGIBLE CUSTOMER-GENERATOR. WHEN THOSE SAME CUSTOM-
ER-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  KILO-
WATT-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 PARAGRAPH (B) OF THIS SUBDIVISION, THE COMMISSION  SHALL  ESTAB-
LISH  STANDARDS  FOR  INTERCONNECTION OF GENERATORS, TAKING INTO ACCOUNT
APPLICABLE INDUSTRY STANDARDS INCLUDING IEEE 1541,  AND  BEST  PRACTICES
INCLUDED  IN  THE  INTERSTATE RENEWABLE ENERGY COUNCIL'S MODEL INTERCON-
NECTION RULES MR-12005. SUCH STANDARDS SHALL NOT BE MORE RESTRICTIVE  OF
INTERCONNECTION THAN STANDARDS 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.
  6.  SAFETY STANDARDS; NON-RESIDENTIAL SOLAR ELECTRIC GENERATING EQUIP-
MENT 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 NET ENERGY
METERING AND  THE  INTERCONNECTION  OF  NON-RESIDENTIAL  SOLAR  ELECTRIC
GENERATING  EQUIPMENT OR 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 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

S. 3873                             7

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.
  7. ELECTRIC RESTRUCTURING.  NOTWITHSTANDING  THE  PROVISIONS  OF  THIS
SECTION,  A CUSTOMER-GENERATOR SHALL COMPLY WITH ANY APPLICABLE DETERMI-
NATIONS OF THE COMMISSION RELATING  TO  RESTRUCTURING  OF  THE  ELECTRIC
INDUSTRY.
  8. SEVERABILITY OF PROVISIONS. THE PROVISIONS OF THIS SECTION SHALL BE
SEVERABLE  AND  IF  THE  APPLICATION OF ANY CLAUSE, SENTENCE, PARAGRAPH,
SUBDIVISION, SECTION, OR PART THEREOF  TO  ANY  PERSON  OR  CIRCUMSTANCE
SHALL  BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID,
SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR,  OR  INVALIDATE  THE
APPLICATION  OF  ANY  SUCH  CLAUSE,  SENTENCE,  PARAGRAPH,  SUBDIVISION,
SECTION, PART OR REMAINDER THEREOF, AS THE CASE MAY  BE,  TO  ANY  OTHER
PERSON  OR  CIRCUMSTANCE,  BUT SHALL BE CONFINED IN ITS OPERATION TO THE
CLAUSE,  SENTENCE,  PARAGRAPH,  SUBDIVISION,  SECTION  OR  PART  THEREOF
DIRECTLY  INVOLVED  IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE
BEEN RENDERED.
  S 2. Subdivision (h) of section 1020-g of the public authorities  law,
as  amended  by  chapter  546 of the laws of 2011, 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, [(E)] (III) fuel cell electric gener-
ating equipment owned, leased or operated by residential customers,  and
[(F)]  (IV)  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
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 3. This act shall take effect immediately.

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