S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3768--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2021
                                ___________
 
 Introduced by M. of A. CUSICK -- read once and referred to the Committee
   on  Energy -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the public service law, in relation to net energy meter-
   ing for fuel-flexible linear generator electric generating equipment

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 2-b of section 2 of the public service law, as
 amended by chapter 6 of the laws of 2011, is amended to read as follows:
   2-b. The term "alternate energy production  facility,"  when  used  in
 this chapter, includes any solar, wind turbine, fuel cell, FUEL-FLEXIBLE
 LINEAR  GENERATOR  ELECTRIC  GENERATING  EQUIPMENT,  tidal, wave energy,
 waste management resource recovery, refuse-derived  fuel,  wood  burning
 facility,  or energy storage device utilizing batteries, flow batteries,
 flywheels or  compressed  air,  together  with  any  related  facilities
 located  at  the same project site, with an electric generating capacity
 of up to eighty megawatts, which produces  electricity,  gas  or  useful
 thermal energy.
   § 2. The section heading 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:
   Net energy metering for residential solar, farm waste, non-residential
 solar electric generating systems, micro-combined heat and power  gener-
 ating  equipment, fuel cell electric generating equipment, FUEL-FLEXIBLE
 LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT, and  micro-hydroelectric
 generating equipment.
   §  3.  Subparagraphs (v) and (vi) of paragraph (a) of subdivision 1 of
 section 66-j of the public service law, subparagraph (v)  as  separately
 amended  by  chapters  530  and 546 of the laws of 2011 and subparagraph
 (vi) as added by chapter 530 of the laws of 2011, are amended to read as
 follows:
   (v) a residential customer of an electric corporation who owns, leases
 or operates fuel  cell  generating  equipment  OR  FUEL-FLEXIBLE  LINEAR
 GENERATOR  ELECTRIC GENERATING EQUIPMENT located on the customer's prem-
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04973-04-1

 A. 3768--A                          2
 
 ises; and (vi) a non-residential customer of an electric corporation who
 owns, leases or operates fuel cell generating equipment OR FUEL-FLEXIBLE
 LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT located and used  at  the
 customer's premises;
   §  4.  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 an
 integrated, cogenerating building heating and  electrical  power  gener-
 ation  system,  operating on any fuel and of any applicable engine, fuel
 cell, FUEL-FLEXIBLE LINEAR GENERATOR, or other technology, with a  rated
 capacity  of at least one kilowatt and not more than ten kilowatts elec-
 tric 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  kilo-
 watt  hours of useful energy in the form of electricity that may work in
 combination with supplemental or parallel conventional heating  systems,
 that is manufactured, installed and operated in accordance with applica-
 ble 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.
   §  5.  Subdivision  1  of  section  66-j  of the public service law is
 amended by adding a new paragraph (i) to read as follows:
   (I) "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT"  OR
 "FUEL-FLEXIBLE  LINEAR  GENERATOR" MEANS AN INTEGRATED SYSTEM CONSISTING
 OF OSCILLATORS, CYLINDERS, ELECTRICITY CONVERSION EQUIPMENT AND  ASSOCI-
 ATED BALANCE OF PLANT COMPONENTS THAT DIRECTLY CONVERT THE LINEAR MOTION
 OF  THE  OSCILLATORS  INTO  ELECTRICITY  AND  WHICH HAS A COMBINED RATED
 CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS.
   § 6. Subdivision 2 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:
   2. Interconnection and net energy metering.  An  electric  corporation
 shall  provide  for the interconnection of solar and farm waste electric
 generating equipment, micro-combined heat and  power  generating  equip-
 ment,  fuel  cell  electric  generating  equipment, FUEL-FLEXIBLE LINEAR
 GENERATOR ELECTRIC GENERATING EQUIPMENT and micro-hydroelectric generat-
 ing 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.
   § 7. 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, FUEL-FLEXIBLE LINEAR
 GENERATOR ELECTRIC GENERATING EQUIPMENT and micro-hydroelectric generat-
 ing equipment owned, leased or operated by  customer-generators  in  the
 corporation's  service  area  is equivalent to one percent of the corpo-
 ration's electric demand for the year two thousand five,  as  determined
 by the department.

 A. 3768--A                          3
 
   §  8.  Paragraph  (c)  of  subdivision 3 of section 66-j of the public
 service law, as amended by chapter 546 of the laws of 2011, subparagraph
 (iii) as amended by chapter 494 of the laws of 2014, is amended to  read
 as follows:
   (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 customer-generator shall pay the electric
 corporation's actual costs of installing the  transformer  or  transfor-
 mers, or other equipment:
   (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, FUEL-FLEXIBLE LINEAR
 GENERATOR  ELECTRIC GENERATING EQUIPMENT or micro-hydroelectric generat-
 ing equipment located and used at his or her residence, or  a  non-resi-
 dential  customer-generator who owns or operates solar electric generat-
 ing equipment with  a  rated  capacity  of  not  more  than  twenty-five
 kilowatts, up to a maximum amount of three hundred fifty dollars;
   (ii)  In  the  case  of a customer-generator who owns or operates farm
 waste electric generating equipment located and used at his or her "farm
 operation," up to a total amount of  five  thousand  dollars  per  "farm
 operation"; and
   (iii)  In the case of a non-residential customer-generator who owns or
 operates solar electric  generating  equipment  or  fuel  cell  electric
 generating equipment OR FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERAT-
 ING  EQUIPMENT or micro-hydroelectric generating equipment or farm waste
 generating equipment as described in subparagraph (ix) of paragraph  (a)
 of  subdivision  one of this section, with a rated capacity of more than
 twenty-five kilowatts located and used at its premises, such cost  shall
 be as determined by the electric corporation subject to review, upon the
 request of such customer-generator, by the department.
   §  9.  Paragraph  (g)  of  subdivision 3 of section 66-j of the public
 service law, as added by chapter 200 of the laws of 2013, is amended  to
 read as follows:
   (g)  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 (viii) of paragraph (a) of  subdivision  one  of
 this  section  that  locates  fuel cell electric generating equipment OR
 FUEL-FLEXIBLE LINEAR GENERATOR 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 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.
   §  10.  Paragraph  (b)  of subdivision 4 of section 66-j of the public
 service law, as amended by chapter 494 of the laws of 2014,  is  amended
 to read as follows:

 A. 3768--A                          4
 
   (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 OR FUEL-FLEXIBLE LINEAR GENERATOR customer-generators
 or farm waste generating equipment customer-generators as  described  in
 subparagraph  (ix)  of paragraph (a) of subdivision one of this section,
 who will be credited at the corporation's  avoided  costs.  The  avoided
 cost  credit  provided  to micro-combined heat and power or fuel cell OR
 FUEL-FLEXIBLE LINEAR GENERATOR customer-generators or farm waste  gener-
 ating equipment customer-generators as described in subparagraph (ix) of
 paragraph  (a)  of  subdivision one of this section shall be treated for
 ratemaking purposes as a purchase of electricity in the market  that  is
 includable in commodity costs.
   §  11.  Paragraph  (a)  of subdivision 5 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:
   (a)  On  or  before  three  months  after  the  effective date of this
 section, each electric corporation shall establish  standards  that  are
 necessary for net energy metering and the interconnection of residential
 solar  or  farm waste electric generating equipment, micro-combined heat
 and power generating equipment and fuel cell electric generating  equip-
 ment,  FUEL-FLEXIBLE  LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT and
 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 residential
 solar, farm waste, micro-combined heat and power and fuel cell  electric
 generating system AND FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING
 EQUIPMENT  and 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's  premises
 and  externally  accessible for the purpose of isolating the residential
 solar and farm waste electric generating equipment and  micro-hydroelec-
 tric generating equipment.
   §  12.  Subparagraph  (i) of paragraph (b) of subdivision 5 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:
   (i) In the case of a customer-generator who  owns  or  operates  solar
 electric  generating equipment located and used at his or her residence;
 an electric corporation may not require a customer-generator  to  comply
 with  additional  safety  or  performance  standards, perform or pay for
 additional tests, or purchase additional  liability  insurance  provided
 that  the residential solar or farm waste electric generating equipment,
 micro-combined heat and power generating equipment, fuel  cell  electric
 generating equipment, FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING
 EQUIPMENT  or  micro-hydroelectric generating equipment meets the safety
 standards established pursuant to this paragraph.
   § 13. This act shall take effect immediately.