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

                                  2927

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

Introduced  by  M.  of A. ENGLEBRIGHT, BENEDETTO, RIVERA, MARKEY, GALEF,
  CAHILL, GUNTHER, LUPARDO, MAGNARELLI, SCHIMMINGER, HOOPER,  O'DONNELL,
  ROSENTHAL,  BROOK-KRASNY, TITONE, JAFFEE, KAVANAGH, SKARTADOS, BRINDI-
  SI, BARRETT, SANTABARBARA -- Multi-Sponsored by -- M. of  A.  BRENNAN,
  COLTON,  COOK,  GIGLIO, GOTTFRIED, KOLB, LOPEZ, MAGEE, PAULIN, STIRPE,
  WEINSTEIN -- 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 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REPEALED and a new section 66-j is added to read as follows: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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07249-01-5
              

A. 2927                             2

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.
  (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

A. 2927                             3

  (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.
  (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

A. 2927                             4

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.
  (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.

A. 2927                             5

  (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,
STANDBY CHARGE, CUSTOMER CHARGE, MINIMUM MONTHLY CHARGE, INTERCONNECTION
CHARGE    OR    OTHER   CHARGE   THAT   WOULD   INCREASE   AN   ELIGIBLE

A. 2927                             6

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
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.

A. 2927                             7

  (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.
  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.