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

                                  6804

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              April 2, 2015
                               ___________

Introduced  by M. of A. FINCH -- read once and referred to the Committee
  on Energy

AN ACT to amend the public service law and the public  authorities  law,
  in  relation to net-metering for non-residential customers of electric
  corporations which own, lease or operate micro-combined heat and power
  generating equipment

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

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 66-j of the
public service law, as amended by chapter  546  of  the  laws  of  2011,
subparagraphs  (iv)  and (v) as separately amended and subparagraph (vi)
as added by chapter 530 of the laws of 2011 and subparagraphs (vii)  and
(viii)  as amended and (ix) as added by chapter 494 of the laws of 2014,
is amended to read as follows:
  (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;
(v) A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC  CORPORATION  WHICH  OWNS,
LEASES  OR  OPERATES  MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
LOCATED ON THE CUSTOMER'S PREMISES; (VI) a residential  customer  of  an
electric  corporation  who owns, leases or operates fuel cell generating
equipment located on the customer's premises; [and (vi)] (VII) a non-re-
sidential customer of an electric corporation who owns, leases or  oper-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09135-05-5
              

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ates  fuel  cell generating equipment located and used at the customer's
premises; [(vii)] (VIII) a residential customer of  an  electric  corpo-
ration,  who  owns  or operates micro-hydroelectric generating equipment
located  and  used at his or her residence; [(viii)] (IX) a non-residen-
tial customer of an electric corporation which owns or  operates  micro-
hydroelectric generating equipment located and used at its premises; and
[(ix)]  (X)  a non-residential customer of an electric corporation which
owns or operates farm waste electric generating  equipment  located  and
used at its premises.
  S  2.  Paragraph  (f)  of  subdivision 1 of section 66-j of the public
service law, as added by chapter 355 of the laws of 2009, is amended  to
read as follows:
  (f) "Micro-combined heat and power generating equipment" means (I) (A)
IN  THE  CASE  OF  A  RESIDENTIAL CUSTOMER, an integrated, co-generating
building heating and electrical power generation  system,  operating  on
any  fuel  and of any applicable engine, fuel cell, or other technology,
with a rated capacity of [at least one kilowatt 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  thou-
sand kilowatt hours of useful energy in the form of electricity that may
work  in  combination with supplemental or parallel conventional heating
systems[,]; AND (B) IN THE CASE OF A NON-RESIDENTIAL CUSTOMER, AN  INTE-
GRATED,  CO-GENERATING  BUILDING HEATING AND ELECTRICAL POWER GENERATION
SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE,  FUEL  CELL,
OR  OTHER TECHNOLOGY, WITH A RATED CAPACITY OF NOT MORE THAN TWENTY-FIVE
KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT THAT A 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  THOU-
SAND KILOWATT HOURS OF USEFUL ENERGY IN THE FORM OF ELECTRICITY THAT MAY
WORK  IN  COMBINATION WITH SUPPLEMENTAL OR PARALLEL CONVENTIONAL HEATING
SYSTEMS; 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  with  an
electric corporation's transmission and distribution facilities.
  S  3.  Subparagraph (i) of paragraph (c) and paragraph (e) of subdivi-
sion 3 of section 66-j of the public service law, as amended by  chapter
546 of the laws of 2011, are amended to read as follows:
  (i)  In  the  case  of a customer-generator who owns or operates solar
electric generating equipment, micro-combined heat and power  generating
equipment,  fuel  cell electric generating equipment or micro-hydroelec-
tric generating equipment located and used at his or her residence, or a
non-residential customer-generator who owns or operates  solar  electric
generating  equipment OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIP-
MENT with a rated capacity of not more than twenty-five kilowatts, up to
a maximum amount of three hundred fifty dollars;
  (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] SUBPARAGRAPHS (iii) AND (V) of paragraph (a)
of subdivision one of this section that locates solar electric  generat-
ing  equipment,  MICRO-COMBINED  HEAT  AND POWER 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

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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. Paragraphs (a), (b) and (c) of subdivision 5-a of section 66-j of
the public service law, as amended by chapter 546 of the laws  of  2011,
are amended to read as follows:
  (a)  On or before three months after the effective date of this subdi-
vision, each electric corporation shall  establish  standards  that  are
necessary  for  net energy metering and the interconnection of non-resi-
dential solar electric generating  equipment  [or],  micro-hydroelectric
generating  equipment OR MICRO-COMBINED HEAT AND POWER 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 OR MICRO-COMBINED
HEAT AND POWER 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 OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT.
  (b) In the event that the total rated  generating  capacity  of  solar
electric   generating  equipment  [or],  micro-hydroelectric  generating
equipment OR MICRO-COMBINED HEAT AND  POWER  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 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 gener-
ating  equipment  OR  MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
meets the safety standards established pursuant to this subdivision.
  S 5. 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 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, (E)  fuel  cell  electric  generating
equipment  owned, leased or operated by residential customers, [and] (F)
MICRO-COMBINED HEAT AND POWER GENERATING  EQUIPMENT  OWNED,  LEASED,  OR

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OPERATED  BY  NON-RESIDENTIAL  CUSTOMERS,  AND  (G)  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  6.  This  act  shall take effect on the sixtieth day after it shall
have become a law.