S T A T E O F N E W Y O R K
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4252
2017-2018 Regular Sessions
I N A S S E M B L Y
February 2, 2017
___________
Introduced by M. of A. QUART -- read once and referred to the Committee
on Energy
AN ACT to amend the public service law, in relation to shared renewable
energy facilities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service law is amended by adding a new section
66-o to read as follows:
§ 66-O. SHARED RENEWABLE ENERGY FACILITIES. 1. DEFINITIONS. AS USED IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "SHARED RENEWABLE ENERGY FACILITY" MEANS RENEWABLE ENERGY TECHNOL-
OGY THAT IS OWNED OR DEVELOPED BY AN ENTITY OTHER THAN A PUBLIC AUTHORI-
TY OR AN ELECTRIC DISTRIBUTION COMPANY AND 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; THAT IS OPERATED IN COMPLIANCE WITH ANY STAND-
ARDS AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION; AND WHERE ELEC-
TRICITY GENERATED BY THE FACILITY IS CREDITED TO THE SUBSCRIBERS OF THE
FACILITY. A SHARED RENEWABLE ENERGY FACILITY:
(I) SHALL UTILIZE ONE OF THE FOLLOWING RENEWABLE ENERGY TECHNOLOGIES
AS DEFINED BY SECTIONS SIXTY-SIX-J AND SIXTY-SIX-L OF THIS ARTICLE: (A)
SOLAR ELECTRIC GENERATING EQUIPMENT; (B) FARM WASTE ELECTRIC GENERATING
EQUIPMENT; (C) FUEL CELL ELECTRIC GENERATING EQUIPMENT; (D) MICRO-HY-
DROELECTRIC GENERATING EQUIPMENT; AND (E) WIND ELECTRIC GENERATING
EQUIPMENT;
(II) SHALL HAVE AT LEAST TWO SUBSCRIBERS; AND
(III) SHALL HAVE A RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILO-
WATTS, AND THE COMMISSION SHALL HAVE THE AUTHORITY TO DETERMINE MAXIMUM
RATED CAPACITY THRESHOLDS FOR SHARED RENEWABLE ENERGY FACILITIES BASED
UPON AN EVALUATION AND FINDING OF PUBLIC INTEREST, AS DETERMINED BY A
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08932-01-7
A. 4252 2
STAKEHOLDER PROCESS THROUGH A PROCEEDING TO BE ESTABLISHED BY THE
COMMISSION, AND THE ATTRIBUTES OF EACH RENEWABLE ENERGY TECHNOLOGY.
(B) "SUBSCRIBER" MEANS A CUSTOMER OF AN ELECTRIC CORPORATION WHO
SUBSCRIBES TO A SHARED RENEWABLE ENERGY FACILITY AND WHO HAS IDENTIFIED
AN INDIVIDUAL METER AT ANY PROPERTY OWNED OR LEASED BY THE CUSTOMER TO
WHICH THE SUBSCRIPTION SHALL BE ATTRIBUTED. SUCH METERS SHALL BE WITHIN
THE SERVICE TERRITORY OF THE SAME ELECTRIC CORPORATION TO WHICH THE
SHARED RENEWABLE ENERGY FACILITY IS INTERCONNECTED AND WITHIN THE SAME
LOAD ZONE OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR AS DETERMINED BY
THE LOCATIONAL BASED MARGINAL PRICE AS OF THE DATE OF THE INITIAL
REQUEST BY THE SUBSCRIBER ORGANIZATION TO INTERCONNECT THE SHARED RENEW-
ABLE ENERGY FACILITY.
(C) "SUBSCRIBER ORGANIZATION" MEANS AN ORGANIZATION WHOSE PURPOSE IS
TO OWN AND OPERATE A SHARED RENEWABLE ENERGY FACILITY FOR THE SUBSCRIB-
ERS OF THE SHARED RENEWABLE ENERGY FACILITY. A SUBSCRIBER ORGANIZATION
MAY BE ANY FOR-PROFIT OR NON-PROFIT ENTITY AND SHALL BE PERMITTED BY THE
STATE PURSUANT TO SECTION SIXTY-EIGHT OF THIS CHAPTER IF, AS DETERMINED
BY THE COMMISSION TO BE IN THE PUBLIC INTEREST PURSUANT TO A STAKEHOLDER
PROCESS THROUGH A PROCEEDING TO BE ESTABLISHED BY THE COMMISSION, THE
SUBSCRIBER ORGANIZATION'S SHARED RENEWABLE ENERGY FACILITY HAS A MAXIMUM
RATED CAPACITY THRESHOLD LARGER THAN TWO THOUSAND KILOWATTS.
(I) THE SUBSCRIBER ORGANIZATION SHALL FILE WITH THE DEPARTMENT OF
STATE ARTICLES OF INCORPORATION, AMENDMENT, CONSOLIDATION, MERGER,
CONVERSION, OR DISSOLUTION, WHEN EXECUTED AND ACKNOWLEDGED, INCLUDING
SUCH AFFIDAVITS AS MAY BE REQUIRED BY THE DEPARTMENT OF STATE. THE
SECRETARY OF STATE SHALL, UPON THE PAYMENT OF THE FEES AS SPECIFIED IN
THIS PARAGRAPH, INDEX SUCH ARTICLES. UPON THE FILING OF SUCH ARTICLES,
THE INCORPORATION, AMENDMENT, CONSOLIDATION, MERGER, CONVERSION, OR
DISSOLUTION PROVIDED FOR THEREIN SHALL BE IN EFFECT. THE DEPARTMENT OF
STATE SHALL CHARGE AND COLLECT FOR:
(1) FILING ARTICLES OF INCORPORATION, FORTY DOLLARS;
(2) FILING ARTICLES OF AMENDMENT, TWENTY-FIVE DOLLARS;
(3) FILING ARTICLES OF CONSOLIDATION OR MERGER, TWENTY-FIVE DOLLARS;
(4) FILING ARTICLES OF CONVERSION, TWENTY-FIVE DOLLARS;
(5) FILING CERTIFICATE OF ELECTION TO DISSOLVE, FIVE DOLLARS;
(6) FILING ARTICLES OF DISSOLUTION, FIVE DOLLARS; AND
(7) FILING CERTIFICATE OF CHANGE OF PRINCIPAL OFFICE, FIFTEEN DOLLARS.
(II) EACH SUBSCRIBER ORGANIZATION SHALL FILE WITH THE COMMISSION AN
ANNUAL REPORT, WHICH SHALL SHOW IN DETAIL:
(1) THE NUMBER OF ITS MEMBERS;
(2) THE AMOUNT OF ITS OUTSTANDING INDEBTEDNESS;
(3) ITS RECEIPTS AND EXPENDITURES DURING THE PRECEDING YEAR;
(4) THE AMOUNT PAID IN REDUCTION OF ITS INDEBTEDNESS AND AS INTEREST
UPON ITS INDEBTEDNESS;
(5) THE NAMES OF ITS OFFICERS AND THE AGGREGATE AMOUNT PAID AS SALA-
RIES TO THEM AND THE AMOUNT PAID AS WAGES TO ANY OF ITS EMPLOYEES; AND
(6) THE LOCATION OF ITS PLANT OR PLANTS AND SYSTEM, WITH A FULL
DESCRIPTION OF ITS PROPERTY AND FRANCHISE AREAS.
(D) "SUBSCRIBER AGREEMENT" MEANS A WRITTEN AGREEMENT IDENTIFYING EACH
SUBSCRIBER OF A SHARED RENEWABLE ENERGY FACILITY, WHICH SHALL INCLUDE
THE NAME, ADDRESS, AND THE ELECTRIC CORPORATION ACCOUNT NUMBER TO WHICH
THE SUBSCRIPTION SHALL BE ATTRIBUTED. THE SUBSCRIBER AGREEMENT SHALL
DESIGNATE THE PORTION OF PRODUCTION FROM THE SHARED RENEWABLE ENERGY
FACILITY ALLOCATED TO EACH SUBSCRIBER FOR THE PURPOSES OF CALCULATING
THE BILL CREDIT TO EACH SUBSCRIBER. THE SUBSCRIBER AGREEMENT SHALL BE
A. 4252 3
FILED BY THE SUBSCRIBER ORGANIZATION WITH THE ELECTRIC CORPORATION TO
WHICH THE SHARED RENEWABLE ENERGY FACILITY IS INTERCONNECTED.
(E) "SUBSCRIPTION" MEANS A DIRECT OR INDIRECT OWNERSHIP, LEASE, OR
FINANCIAL INTEREST IN A SHARED RENEWABLE ENERGY FACILITY THAT ENABLES A
SUBSCRIBER TO RECEIVE A BILL CREDIT FOR A RETAIL ACCOUNT WITH THE ELEC-
TRIC CORPORATION. EACH SUBSCRIPTION SHALL BE SIZED TO REPRESENT THE
ENERGY PRODUCTION FROM AT LEAST ONE KILOWATT OF THE SHARED RENEWABLE
ENERGY FACILITY'S GENERATING CAPACITY PROVIDED, HOWEVER, THAT THE
SUBSCRIPTION IS SIZED TO PRODUCE NO MORE THAN ONE HUNDRED PERCENT OF THE
SUBSCRIBER'S AVERAGE ANNUAL ELECTRICAL CONSUMPTION. IN SIZING THE
SUBSCRIPTION, A DEDUCTION FOR THE AMOUNT OF ANY EXISTING RENEWABLE ENER-
GY GENERATION AT THE SUBSCRIBER'S PREMISES AND ANY SUBSCRIPTIONS BY THE
SUBSCRIBER IN OTHER SHARED RENEWABLE ENERGY FACILITIES SHALL BE MADE.
(F) "BILL CREDIT" MEANS AN AMOUNT OF MONEY CREDITED EACH BILLING PERI-
OD TO AN ELECTRIC ACCOUNT BASED ON A SUBSCRIPTION TO A SHARED RENEWABLE
ENERGY FACILITY AND PURSUANT TO A SUBSCRIBER AGREEMENT AND THE METHODOL-
OGY USED FOR CALCULATION OF THE BILL CREDIT AS ESTABLISHED UNDER THIS
SECTION.
2. PROVISIONS PERTAINING TO SHARED RENEWABLE ENERGY FACILITIES. (A)
THE DETERMINATION OF THE BILL CREDIT AVAILABLE TO EACH SUBSCRIBER OF A
SHARED RENEWABLE ENERGY FACILITY SHALL BE BASED ON EACH SUBSCRIBER'S
SUBSCRIPTION IN THAT SHARED RENEWABLE ENERGY FACILITY.
(B) FOR A SHARED RENEWABLE ENERGY FACILITY, THE TOTAL AMOUNT OF ELEC-
TRICITY GENERATED AND AVAILABLE FOR ALLOCATION TO SUBSCRIBERS SHALL BE
DETERMINED BY A PRODUCTION METER INSTALLED AND PAID FOR BY THE SUBSCRIB-
ER ORGANIZATION THAT IS THE OWNER OF THE SHARED RENEWABLE ENERGY FACILI-
TY.
3. PROVISIONS PERTAINING TO SUBSCRIBERS, SUBSCRIBER ORGANIZATIONS AND
SUBSCRIPTIONS. (A) A SUBSCRIBER ORGANIZATION SHALL BE RESPONSIBLE FOR
PROVIDING TO THE ELECTRIC CORPORATION, AT THE BEGINNING OF EACH BILLING
CYCLE, A SUBSCRIBER AGREEMENT STATEMENT IDENTIFYING THE PORTION OF
PRODUCTION ALLOCATED TO EACH SUBSCRIBER. SUBSCRIBER ORGANIZATIONS MAY
ADD NEW SUBSCRIBERS TO A SUBSCRIBER AGREEMENT OR CHANGE THE INDIVIDUAL
METERED ACCOUNTS TO WHICH A SUBSCRIBER'S SUBSCRIPTION SHALL BE ATTRI-
BUTED AT THE BEGINNING OF EACH BILLING CYCLE BY PROVIDING AN UPDATED
SUBSCRIBER AGREEMENT TO THE ELECTRIC CORPORATION. IF THERE HAS BEEN NO
CHANGE IN THE ALLOCATIONS FROM THE PREVIOUS SUBMISSION, THE SUBSCRIBER
ORGANIZATION IS NOT REQUIRED TO FILE AN UPDATED SUBSCRIBER AGREEMENT.
(B) AN ELECTRIC CORPORATION MAY REQUIRE THAT CUSTOMERS PARTICIPATING
IN A SHARED RENEWABLE ENERGY FACILITY HAVE THEIR METERS READ ON THE SAME
BILLING CYCLE.
(C) THE DISPUTE RESOLUTION PROCEDURES AVAILABLE TO PARTIES IN THE
ELECTRIC CORPORATION'S INTERCONNECTION TARIFF SHALL BE AVAILABLE FOR THE
PURPOSES OF RESOLVING DISPUTES BETWEEN AN ELECTRIC CORPORATION AND
SUBSCRIBERS OR THEIR DESIGNATED REPRESENTATIVE FOR DISPUTES INVOLVING
THE ELECTRIC CORPORATION'S ALLOCATION OF BILL CREDITS TO THE SUBSCRIB-
ER'S ELECTRIC ACCOUNT. THE ELECTRIC CORPORATION SHALL NOT BE RESPONSIBLE
FOR RESOLVING DISPUTES RELATED TO THE AGREEMENTS BETWEEN A SUBSCRIBER,
THE OWNER OF A SHARED RENEWABLE ENERGY FACILITY THAT IS A SUBSCRIBER
ORGANIZATION OR ANY OTHER PARTY. THIS PROVISION SHALL IN NO WAY LIMIT
ANY OTHER RIGHTS THE SUBSCRIBER MAY HAVE RELATED TO AN ELECTRIC CORPO-
RATION'S PROVISION OF ELECTRIC SERVICE OR OTHER MATTERS AS PROVIDED BY,
BUT NOT LIMITED TO, TARIFF, DECISION OF THE COMMISSION, OR STATUTE.
(D) THE FOLLOWING PROVISIONS MAY APPLY TO A SHARED RENEWABLE ENERGY
FACILITY THAT HAS A RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILO-
WATTS, BASED UPON AN EVALUATION AND FINDING OF PUBLIC INTEREST AS DETER-
A. 4252 4
MINED BY A STAKEHOLDER PROCESS THROUGH A PROCEEDING TO BE ESTABLISHED BY
THE COMMISSION:
(I) SUBSCRIBERS SHALL NOT BE ASSESSED STANDBY CHARGES ON THE SHARED
RENEWABLE ENERGY FACILITY OR THE KILOWATT-HOUR GENERATION OF SUCH A
SHARED RENEWABLE ENERGY FACILITY.
(II) AN ELECTRIC CORPORATION SHALL IMPOSE NO OTHER CHARGE OR FEE,
INCLUDING BACK-UP, STANDBY AND DEMAND CHARGES, FOR THE PROVISION OF A
SUBSCRIPTION TO SUCH A SHARED RENEWABLE ENERGY FACILITY.
4. BILL CREDITING AND COLLECTION PROCEDURES. (A) THE ELECTRIC CORPO-
RATION WILL CREDIT THE ACCOUNTS OF THE SUBSCRIBERS OF THE SHARED RENEWA-
BLE ENERGY FACILITY BY APPLYING A BILL CREDIT TO EACH METERED ACCOUNT
ASSOCIATED WITH A SUBSCRIPTION IN ACCORDANCE WITH THE TERMS OF THE
SUBSCRIBER AGREEMENT. THE ELECTRIC CORPORATION SHALL CARRY OVER ANY BILL
CREDIT EARNED BY A SUBSCRIBER AND NOT USED IN THE CURRENT BILLING PERIOD
TO OFFSET THE SUBSCRIBER'S CONSUMPTION IN SUBSEQUENT BILLING PERIODS.
ANY SUCH BILL CREDIT SHALL NOT REDUCE ANY FIXED MONTHLY CUSTOMER CHARGES
IMPOSED BY THE ELECTRIC CORPORATION.
(B) THE SCHEDULE APPLICABLE TO A SUBSCRIBER SHALL BE IDENTICAL, WITH
RESPECT TO RATE STRUCTURE, ALL RETAIL RATE COMPONENTS, AND ANY MONTHLY
CHARGES, TO THE CHARGES THAT THE SUBSCRIBER WOULD BE ASSIGNED IF THE
SUBSCRIBER DID NOT RECEIVE A BILL CREDIT ACCORDING TO THIS SECTION.
(C) TO THE EXTENT PRACTICABLE, ELECTRIC CORPORATIONS SHALL UTILIZE
EXISTING ELECTRONIC DATA INTERCHANGE INFRASTRUCTURE OR OTHER EXISTING
BILLING INFRASTRUCTURE TO IMPLEMENT THEIR BILLING AND COLLECTION RESPON-
SIBILITIES UNDER THIS SECTION.
(D) THE COMMISSION SHALL ENSURE FULL AND TIMELY RECOVERY OF ALL
REASONABLE COSTS INCURRED BY AN ELECTRIC CORPORATION TO IMPLEMENT THE
PROGRAM UNDER THIS SECTION, INCLUDING REASONABLE EXPENSES FOR CHANGES TO
THEIR BILLING SYSTEM AND HANDLING OF COLLECTIONS, AND SHALL DETERMINE
THE APPROPRIATE METHOD OF ALLOCATING THOSE COSTS.
5. CALCULATION OF BILL CREDITS. (A) FOR SUBSCRIBERS TO A SHARED RENEW-
ABLE ENERGY FACILITY THAT ARE LOCATED ON THE SAME DISTRIBUTION FEEDER AS
THE SHARED RENEWABLE ENERGY FACILITY, THE VALUE OF THE BILL CREDIT SHALL
BE CALCULATED BY MULTIPLYING THE SUBSCRIBER'S PORTION OF THE KILOWATT-
HOUR ELECTRICITY PRODUCTION FROM THE SHARED RENEWABLE ENERGY FACILITY BY
THE RETAIL RATE AS CHARGED TO THE SUBSCRIBER BY THE ELECTRIC CORPO-
RATION;
(B) THE COMMISSION, IN CONSULTATION WITH NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY, MAY REVISE THE BILL CREDIT CALCU-
LATION METHODOLOGY AT ANY TIME THAT IT CONCLUDES THAT THE EXISTING METH-
ODOLOGY DOES NOT PROVIDE SUBSCRIBERS WITH THE FAIR VALUE OF ELECTRICITY
AND OTHER BENEFITS PRODUCED BY SHARED RENEWABLE ENERGY FACILITIES AND
THAT SUCH A REVISION IS IN THE PUBLIC INTEREST, AS DETERMINED BY A
STAKEHOLDER PROCESS THROUGH A PROCEEDING TO BE ESTABLISHED BY THE
COMMISSION. ANY REVISION TO THE BILL CREDIT CALCULATION METHODOLOGY
SHALL APPLY TO NEW SHARED RENEWABLE ENERGY FACILITIES INTERCONNECTED
AFTER THE COMMISSION ADOPTS A NEW METHODOLOGY.
6. CONDITIONS OF SERVICE. (A) AN ELECTRIC CORPORATION SHALL PROVIDE
FOR THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES OWNED OR
OPERATED BY A SUBSCRIBER ORGANIZATION, PROVIDED THE SUBSCRIBER ORGANIZA-
TION HAS PAID OR AGREED IN WRITING, ALONG WITH THE FURNISHING OF REASON-
ABLE SECURITY, TO PAY THE ELECTRIC CORPORATION FOR THE MATERIAL AND
INSTALLATION COSTS RELATING TO ANY PORTION OF A DISTRIBUTION LINE,
SERVICE LINE AND APPURTENANT FACILITIES THAT EXCEEDS THE PORTION WHICH
THE ELECTRIC CORPORATION IS REQUIRED TO PROVIDE WITHOUT CONTRIBUTION,
WHICH COSTS SHALL BE DEFINED IN THE ELECTRIC CORPORATION'S TARIFF, AND
A. 4252 5
THAT THE SUBSCRIBER ORGANIZATION ENTERS INTO A CONTRACT WITH THE CORPO-
RATION OR COMPLIES WITH THE CORPORATION'S APPLICABLE SCHEDULE AND
COMPLIES WITH STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
(B) 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 SHARED RENEWABLE ENERGY FACILITIES, 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.
(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 SUBSCRIBER ORGANIZATION SHALL PAY THE
ELECTRIC CORPORATION'S ACTUAL COSTS OF INSTALLING THE TRANSFORMER OR
TRANSFORMERS, OR OTHER EQUIPMENT AS DETERMINED BY THE ELECTRIC CORPO-
RATION SUBJECT TO REVIEW, UPON REQUEST OF SUCH SUBSCRIBER ORGANIZATION,
BY THE COMMISSION.
(D) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE DATE OF THE CHAPTER
OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS SECTION, EACH
ELECTRIC CORPORATION SHALL ESTABLISH STANDARDS THAT ARE NECESSARY FOR
SHARED RENEWABLE ENERGY FACILITIES AND THE INTERCONNECTION OF SHARED
RENEWABLE ENERGY GENERATING EQUIPMENT TO ITS SYSTEM AND THAT THE COMMIS-
SION 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 ENERGY GENERATING
EQUIPMENT FROM THE UTILITY SYSTEM FOR VOLTAGE AND FREQUENCY DEVIATIONS;
AND
(II) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY THE SUBSCRIBER
ORGANIZATION WHICH SHALL BE EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF
ISOLATING THE ENERGY GENERATING EQUIPMENT.
§ 2. This act shall take effect immediately.