S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6700
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 15, 2017
                                ___________
 
 Introduced  by  M.  of A. ENGLEBRIGHT, BENEDETTO, RIVERA, GALEF, CAHILL,
   GUNTHER, LUPARDO, MAGNARELLI, SCHIMMINGER, HOOPER,  O'DONNELL,  ROSEN-
   THAL,  TITONE,  JAFFEE, KAVANAGH, SKARTADOS, BRINDISI, BARRETT, SANTA-
   BARBARA -- Multi-Sponsored by -- M. of A. COLTON, COOK, GIGLIO,  GOTT-
   FRIED, KOLB, LOPEZ, MAGEE, PAULIN, STIRPE -- 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 REPEALED and a new section 66-j is added to read as follows:
   §  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.
              

                                                            LBD03510-01-7

 A. 6700                             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. 6700                             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-HYDROELECTRIC
 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. 6700                             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 FOLLOWING
 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-GENERA-
 TOR  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. 6700                             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 EXCLU-
 SIVELY 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

 A. 6700                             6
 
 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. 6700                             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.
   § 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].
   § 3. This act shall take effect immediately.