S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8273
 
                             I N  S E N A T E
 
                              April 25, 2018
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- 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, in relation to rate schedules
   for net energy metering; and directing the Long Island power authority
   to adopt a methodology for the establishment of a value of distributed
   energy resources crediting mechanism
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 66-j of the public service law, as
 amended by chapter 355 of the laws of 2009, paragraph (a) as amended and
 paragraph (h) as added by chapter 546 of the laws of 2011, subparagraphs
 (iv)  and  (v)  of  paragraph (a) as separately amended and subparagraph
 (vi) of paragraph (a) as added by chapter 530 of the laws  of  2011  and
 subparagraphs  (vii) and (viii) of paragraph (a) as amended and subpara-
 graph (ix) of paragraph (a) as added by chapter 494 of the laws of 2014,
 paragraph (d) as amended by chapter 253 of the laws of  2013,  paragraph
 (e) as amended by section 1 of part Z of chapter 58 of the laws of 2016,
 and  paragraph  (g)  as  amended  by chapter 518 of the laws of 2014, is
 amended to read as follows:
   1. Definitions. As used in this section,  the  following  terms  shall
 have the following meanings:
   (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  residential customer of an electric corporation who owns, leases
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15427-04-8

 S. 8273                             2
 
 or operates fuel cell generating equipment  located  on  the  customer's
 premises; and (vi) a non-residential customer of an electric corporation
 who  owns, leases or operates fuel cell generating equipment located and
 used  at  the  customer's  premises;  (vii) a residential customer of an
 electric corporation, who owns or operates micro-hydroelectric  generat-
 ing equipment located and used at his or her residence; (viii) a non-re-
 sidential  customer  of  an  electric corporation which owns or operates
 micro-hydroelectric generating equipment located and used at  its  prem-
 ises;  and  (ix)  a  non-residential customer of an electric corporation
 which owns or operates farm waste electric generating equipment  located
 and used at its premises.  CUSTOMER-GENERATORS ALSO INCLUDE ALL RESIDEN-
 TIAL  AND  NON-RESIDENTIAL  CUSTOMERS  ELIGIBLE  TO RECEIVE CREDITS FROM
 REMOTE NET-METERED AND COMMUNITY  DISTRIBUTED  GENERATING  EQUIPMENT  AS
 DEFINED  IN  PARAGRAPH  (E) OF SUBDIVISION THREE OF THIS SECTION AND THE
 COMMISSION'S ORDERS FOR IMPLEMENTING A COMMUNITY NET METERING PROGRAM.
   (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) (A) in the case of a residential customer (other than a farm utiliz-
 ing a residential meter), with a rated capacity of not more  than  twen-
 ty-five  kilowatts; (B) in the case of a customer who owns or operates a
 farm operation as such term is defined in subdivision eleven of  section
 three  hundred  one of the agriculture and markets law utilizing a resi-
 dential meter with a rated capacity of not more than one  hundred  kilo-
 watts;  and  (C) in the case of a non-residential customer, with a rated
 capacity of not more than [two] FIVE 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 conjunction with an electric corporation's trans-
 mission  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] FIVE 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.

 S. 8273                             3
 
   (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) in the case of a residential customer, a  solid  oxide,  molten
 carbonate,  proton exchange membrane or phosphoric acid fuel cell with a
 combined rated capacity of not more than ten kilowatts; and (B)  in  the
 case  of  a  non-residential  customer, a solid oxide, molten carbonate,
 proton exchange membrane or phosphoric acid fuel cell  with  a  combined
 rated capacity of not more than [two] FIVE 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.
   (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]
 FIVE  thousand  kilowatts; and (ii) that is manufactured, installed, and
 operated in accordance with applicable government  and  industry  stand-
 ards,  that is connected to the electric system and operated in conjunc-
 tion with an electric corporation's transmission and distribution facil-
 ities, and that  is  operated  in  compliance  with  any  standards  and
 requirements established under this section.
   (I)  "DISTRIBUTED  ENERGY  RESOURCES" INCLUDES, BUT IS NOT LIMITED TO,
 FARM WASTE ELECTRIC GENERATING EQUIPMENT, FUEL CELL ELECTRIC  GENERATING
 EQUIPMENT, MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT, MICRO-HY-
 DROELECTRIC  GENERATING  EQUIPMENT,  OR SOLAR ELECTRIC GENERATING EQUIP-
 MENT.
   § 2. Subparagraph (iii) of paragraph (a) of subdivision 3  of  section
 66-j of the public service law, as amended by chapter 546 of the laws of
 2011, is amended to read as follows:
   (iii)  Each electric corporation shall make such contract and schedule
 available to customer-generators on a first come,  first  served  basis,
 until the total rated generating capacity for solar and farm waste elec-
 tric  generating  equipment,  micro-combined  heat  and power generating
 equipment, fuel cell electric generating equipment and  micro-hydroelec-
 tric  generating equipment owned, leased or operated by customer-genera-
 tors in the corporation's service area is  equivalent  to  [one]  TWELVE
 percent  of  the corporation's electric demand for the year two thousand
 five, as determined by the department.

 S. 8273                             4
 
   § 3. Paragraph (a) of subdivision 3 of  section  66-j  of  the  public
 service  law  is  amended  by  adding a new subparagraph (iv) to read as
 follows:
   (IV)  THE  MODEL CONTRACTS AND SCHEDULE OF RATES, TERMS AND CONDITIONS
 FOR NET ENERGY METERING CUSTOMER-GENERATORS APPROVED BY  THE  COMMISSION
 PURSUANT  TO  SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH AND THAT WERE
 IN EFFECT AS OF MARCH FIRST, TWO THOUSAND  SEVENTEEN,  SHALL  REMAIN  IN
 FULL  FORCE  AND  EFFECT  AND,  SUBJECT  TO  THE LIMITATION SET FORTH IN
 SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL BE  AVAILABLE  TO  CUSTOMER-
 GENERATORS  WHO  EXECUTE  AN INTERCONNECTION AGREEMENT WITH THE ELECTRIC
 CORPORATION PRIOR TO DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, AND
 SHALL REMAIN AVAILABLE TO THOSE CUSTOMER-GENERATORS FOR THE LIFETIME  OF
 THE GENERATING EQUIPMENT.
   §  4.  Paragraph  (a)  of  subdivision 3 of section 66-j of the public
 service law is amended by adding a  new  subparagraph  (v)  to  read  as
 follows:
   (V)(A)  NO  LATER  THAN  JUNE  THIRTIETH, TWO THOUSAND TWENTY-ONE, THE
 COMMISSION SHALL ADOPT A METHODOLOGY FOR THE ESTABLISHMENT OF A VALUE OF
 DISTRIBUTED ENERGY RESOURCES CREDITING MECHANISM FOR CUSTOMER-GENERATORS
 WHICH SHALL FULLY AND ACCURATELY ACCOUNT FOR  THE  ENERGY  AND  CAPACITY
 VALUE  OF  THE ELECTRICITY GENERATED, AS WELL AS FOR THE LONG-TERM VALUE
 OF PUBLIC BENEFITS PROVIDED BY SUCH RESOURCES, INCLUDING BUT NOT LIMITED
 TO, GRID SECURITY AND RESILIENCE, CLIMATE SECURITY, REDUCED EMISSIONS OF
 GREENHOUSE GASES AND OTHER AIR AND WATER POLLUTANTS, AND  REDUCED  EXPO-
 SURE  TO  FUEL  PRICE  VOLATILITY, ENVIRONMENTAL JUSTICE ATTRIBUTES, AND
 AVOIDED SOCIETAL AND RATEPAYER COSTS FROM THE REDUCTION OF ENERGY  BILLS
 FOR LOW-INCOME CUSTOMERS. IN ADDITION, THE COMMISSION SHALL ALSO SEEK TO
 ENSURE  THE  PREDICTABILITY  AND  SIMPLICITY  OF THE APPLICATION OF THIS
 METHODOLOGY TO  CUSTOMER-GENERATORS.  NO  LATER  THAN  FEBRUARY  TWENTY-
 EIGHTH,  TWO  THOUSAND  TWENTY-ONE, THE DEPARTMENT SHALL PUBLISH A DRAFT
 METHODOLOGY FOR PUBLIC COMMENT AND SHALL PROVIDE A PUBLIC COMMENT PERIOD
 OF NO LESS THAN NINETY DAYS. FURTHER, THE COMMISSION SHALL HOLD AT LEAST
 FOUR PUBLIC HEARINGS ABOUT THE DRAFT METHODOLOGY. THESE  HEARINGS  SHALL
 BE HELD IN DIFFERENT REGIONS OF THE STATE, SHALL BE HELD NO EARLIER THAN
 SIXTY  DAYS  AFTER  THE  DRAFT  METHODOLOGY  IS  PUBLISHED, AND SHALL BE
 ANNOUNCED AT LEAST THIRTY DAYS IN ADVANCE.
   (B)(I) ON OR BEFORE THREE MONTHS AFTER THE  COMMISSION'S  ADOPTION  OF
 THE  METHODOLOGY REQUIRED BY CLAUSE (A) OF THIS SUBPARAGRAPH, EACH ELEC-
 TRIC CORPORATION SHALL FILE WITH THE COMMISSION A MODEL CONTRACT  AND  A
 SCHEDULE  THAT  ESTABLISHES  CONSISTENT  AND REASONABLE RATES, TERMS AND
 CONDITIONS  FOR  THE  VALUE  OF  DISTRIBUTED  ENERGY  RESOURCE  SERVICES
 PROVIDED  BY  RESIDENTIAL CUSTOMER-GENERATORS, ACCORDING TO THE REQUIRE-
 MENTS OF THIS SECTION. THE COMMISSION SHALL  RENDER  A  DECISION  WITHIN
 THREE MONTHS FROM THE DATE ON WHICH THE CONTRACT AND SCHEDULE ARE FILED.
   (II)  ON  OR  BEFORE  THREE  MONTHS  AFTER  THE EFFECTIVE DATE OF THIS
 SUBPARAGRAPH, EACH ELECTRIC CORPORATION SHALL FILE WITH THE COMMISSION A
 MODEL CONTRACT AND A SCHEDULE THAT ESTABLISHES CONSISTENT AND REASONABLE
 RATES,  TERMS  AND  CONDITIONS  FOR  THE  VALUE  OF  DISTRIBUTED  ENERGY
 RESOURCES  SERVICES  PROVIDED  BY  NON-RESIDENTIAL  CUSTOMER-GENERATORS,
 ACCORDING TO THE REQUIREMENTS OF  THIS  SECTION.  THE  COMMISSION  SHALL
 RENDER  A DECISION WITHIN THREE MONTHS OF THE DATE ON WHICH THE CONTRACT
 AND SCHEDULE ARE FILED.
   (III)  IN  LIEU  OF  ITS  PREVIOUSLY  EFFECTIVE  NET  ENERGY  METERING
 CONTRACTS  AND  SCHEDULES,  EACH  ELECTRIC  CORPORATION  SHALL  MAKE THE
 CONTRACTS AND SCHEDULES APPROVED BY  THE  COMMISSION  PURSUANT  TO  THIS
 PARAGRAPH  AVAILABLE  TO ALL CUSTOMER-GENERATORS WITHIN ITS SERVICE AREA

 S. 8273                             5
 
 SEEKING TO CONTRACT WITH THE ELECTRIC CORPORATION AFTER SUCH APPROVAL BY
 THE COMMISSION. THE LIMITATION ON  NET  ENERGY  METERING  CONTRACTS  SET
 FORTH  IN  SUBPARAGRAPH (III) OF THIS PARAGRAPH SHALL NOT APPLY TO VALUE
 OF DISTRIBUTED ENERGY RESOURCES CONTRACTS.
   (C) UNTIL THE COMMISSION APPROVES THE CONTRACTS AND SCHEDULES FILED BY
 AN  ELECTRIC  CORPORATION  PURSUANT  TO  THIS SUBPARAGRAPH, ANY VALUE OF
 DISTRIBUTED ENERGY RESOURCES CONTRACTS AND  SCHEDULES  APPROVED  BY  THE
 COMMISSION PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH SHALL REMAIN
 IN  FULL  FORCE AND EFFECT AND SHALL BE AVAILABLE TO CUSTOMER-GENERATORS
 AT THEIR REQUEST.
   § 5. Paragraph (b) of subdivision 3 of  section  66-j  of  the  public
 service  law,  as amended by chapter 546 of the laws of 2011, is amended
 to read as follows:
   (b) Nothing in this subdivision  shall  prohibit  a  corporation  from
 providing  net  energy  metering  to additional customer-generators. The
 commission shall have the authority, after January first,  two  thousand
 [twelve] NINETEEN, to increase the percent limits ESTABLISHED BY SUBPAR-
 AGRAPH  (III) OF PARAGRAPH (A) OF THIS SUBDIVISION if it determines that
 additional net energy metering is in the public interest.
   § 6. The Long Island power authority shall adopt a methodology for the
 establishment of a value of distributed energy resources crediting mech-
 anism generally consistent with the requirements set  forth  in  section
 66-j of the public service law. The authority shall utilize to the full-
 est  extent  practicable  technologies  that  rely  on  renewable energy
 resources, improvements in energy efficiency,  energy  storage  systems,
 and shall seek to meet or exceed New York state climate change and envi-
 ronmental goals.  The authority shall hold no less than two public hear-
 ings  before  establishing  such a value of distributed energy resources
 crediting mechanism. Provided  however,  until  the  authority  approves
 contracts  and  schedules for such value of distributed energy resources
 crediting mechanism, any value of distributed energy resources crediting
 mechanism contracts and schedules approved by the authority prior to the
 effective date of this act shall remain in full  force  and  effect  and
 shall be available to customer-generators at their request.
   §  7.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided, however,  that  effective  immediately  the
 public  service  commission  and  the  Long  Island  power authority are
 authorized and directed  to  promulgate  any  rules  and/or  regulations
 necessary to implement the provisions of this act.