S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4326
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2023
                                ___________
 
 Introduced by M. of A. LEMONDES -- read once and referred to the Commit-
   tee on Energy
 
 AN  ACT  to amend the public service law and the public authorities law,
   in relation to net-metering for non-residential customers of  electric
   corporations which own, lease or operate micro-combined heat and power
   generating equipment

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision  1  of  section  66-j  of  the
 public  service  law,  as  amended  by  chapter 546 of the laws of 2011,
 subparagraph (iv) as separately amended by chapter 530 of  the  laws  of
 2011,  subparagraphs  (v) and (vi) as amended by chapter 691 of the laws
 of 2022 and subparagraphs (vii) and (viii) as amended and (ix) as  added
 by chapter 494 of the laws of 2014, is amended to read as follows:
   (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
 or operates fuel  cell  generating  equipment  or  fuel-flexible  linear
 generator  electric generating equipment located on the customer's prem-
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01254-02-3
              

 A. 4326                             2
 
 at the customer's premises; (vii) a residential customer of an  electric
 corporation,  who owns or operates micro-hydroelectric generating equip-
 ment located and used at his or her residence; (viii) a  non-residential
 customer of an electric corporation which owns or operates micro-hydroe-
 lectric  generating  equipment  located  and used at its premises; [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; AND (X) A  NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPO-
 RATION WHICH OWNS, LEASES OR OPERATES MICRO-COMBINED  HEAT  AND    POWER
 GENERATING EQUIPMENT LOCATED  ON  THE  CUSTOMER'S PREMISES.
   §  2.  Paragraph  (f)  of  subdivision 1 of section 66-j of the public
 service law, as amended by chapter 691 of the laws of 2022,  is  amended
 to read as follows:
   (f) "Micro-combined heat and power generating equipment" means (I) (A)
 IN  THE CASE OF RESIDENTIAL CUSTOMER, an integrated, cogenerating build-
 ing heating and electrical power generation  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 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[,]; AND (B) IN THE  CASE
 OF  A  NON-RESIDENTIAL CUSTOMER, AN   INTEGRATED, COGENERATING  BUILDING
 HEATING AND ELECTRICAL POWER GENERATION SYSTEM, OPERATING  ON  ANY  FUEL
 AND  OF  ANY APPLICABLE ENGINE,  FUEL  CELL, OR OTHER TECHNOLOGY, WITH A
 RATED CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS ELECTRIC  AND  ANY
 THERMAL OUTPUT THAT A FULL LOAD HAS A  DESIGN TOTAL  FUEL  USE EFFICIEN-
 CY  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 SUPPLEMENTAL OR PARALLEL CONVENTIONAL  HEATING  SYSTEMS;  AND  (II)
 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.
   §  3.  Subparagraph (i) of paragraph (c) and paragraph (e) of subdivi-
 sion 3 of section 66-j of the public service law,  subparagraph  (i)  of
 paragraph  (c)  as amended by chapter 691 of the laws of 2022, and para-
 graph (e) as amended by chapter 546 of the laws of 2011, are amended  to
 read as follows:
   (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 OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT with
 a rated capacity of not more than twenty-five kilowatts, up to a maximum
 amount of three hundred fifty dollars;
   (e) 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] SUBPARAGRAPHS (iii) AND (X) of paragraph (a)
 of subdivision one of this section that locates solar electric  generat-
 A. 4326                             3
 
 ing  equipment,  MICRO-COMBINED  HEAT  AND POWER 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 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.
   § 4. Paragraphs (a), (b) and (c) of subdivision 5-a of section 66-j of
 the public service law, as amended by chapter 546 of the laws  of  2011,
 are amended to read as follows:
   (a)  On or before three months after the effective date of this subdi-
 vision, each electric corporation shall  establish  standards  that  are
 necessary  for  net energy metering and the interconnection of non-resi-
 dential solar electric generating  equipment  [or],  micro-hydroelectric
 generating  equipment OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIP-
 MENT 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 OR MICRO-COMBINED
 HEAT AND POWER 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 OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT.
   (b) In the event that the total rated  generating  capacity  of  solar
 electric   generating  equipment  [or],  micro-hydroelectric  generating
 equipment OR MICRO-COMBINED HEAT AND  POWER  GENERATING  EQUIPMENT  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 customer-generator
 to  comply with reasonable measures to ensure safety of the local feeder
 line.
   (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 gener-
 ating  equipment  OR  MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
 meets the safety standards established pursuant to this subdivision.
   § 5. 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 electric generating equipment owned or
 operated  by  residential  customers, (B) farm waste electric generating
 equipment owned or operated by customer-generators, (C)  solar  electric
 A. 4326                             4
 
 generating equipment owned or operated by non-residential customers, (D)
 micro-combined  heat  and  power  generating  equipment owned, leased or
 operated by residential customers, (E)  fuel  cell  electric  generating
 equipment  owned, leased or operated by residential customers, [and] (F)
 MICRO-COMBINED HEAT AND POWER GENERATING  EQUIPMENT  OWNED,  LEASED,  OR
 OPERATED  BY  NON-RESIDENTIAL  CUSTOMERS,  AND  (G)  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.
   § 6. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.