§ 66-j. Net energy metering for residential solar, farm waste,
non-residential solar electric generating systems, micro-combined heat
and power generating equipment, fuel cell electric generating equipment,
fuel-flexible linear generator electric 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) a residential customer of an
electric corporation, who owns or operates solar electric generating
equipment located and used at his or her residence; (ii) a customer of
an electric corporation, who owns or operates farm waste electric
generating 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
premises; 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; (vii) a residential customer of an
electric corporation, who owns or operates micro-hydroelectric
generating equipment located and used at his or her residence; (viii) a
non-residential customer of an electric corporation which owns or
operates micro-hydroelectric 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.

(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
measure, 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
utilizing a residential meter), with a rated capacity of not more than
twenty-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 residential meter with a rated capacity of not more than one
hundred kilowatts; and (C) 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 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 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
applicable 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
materials on an annual basis.

(f) "Micro-combined heat and power generating equipment" means an
integrated, cogenerating building 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 supplemental 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 operated 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 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
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 transmission and distribution
facilities, and that is operated in compliance with any standards and
requirements established under this section.

(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
associated 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.

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
equipment, fuel cell electric generating equipment, fuel-flexible linear
generator electric 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) (i) 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.

(ii) On or before three months after the effective date of this
subparagraph, 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 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 schedule is filed.

(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
electric generating equipment, micro-combined heat and power generating
equipment, fuel cell electric generating equipment, fuel-flexible linear
generator electric generating equipment and micro-hydroelectric
generating equipment owned, leased or operated by customer-generators in
the corporation's service area is equivalent to one percent of the
corporation's electric demand for the year two thousand five, as
determined by the department.

(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, to increase the percent limits if it determines that additional
net energy metering is in the public interest.

(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
transformers, 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
generating equipment located and used at his or her residence, or a
non-residential customer-generator who owns or operates solar electric
generating 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
generating 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.

(d) An electric corporation shall impose no other charge or fee,
including 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.

(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
agriculture and markets law, or a non-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 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.

(f) 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, or a non-residential customer-generator as
defined by subparagraph (viii) 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-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.

(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
agriculture 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-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.

(h) A non-residential customer-generator as defined by subparagraph
(ix) of paragraph (a) of subdivision one of this section that locates
farm waste generating equipment with a net 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
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
corporation 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
customer-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 electricity 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
generating 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.

(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), (ii) or (ix) 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.

(d) In the event that the corporation imposes charges based on
kilowatt 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
customer-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.

5. Safety standards. (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 equipment, 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-generator 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-hydroelectric generating equipment.

(b) 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.

(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.

(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," 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:

1. the electric generating equipment meets the safety standards
established pursuant to this paragraph; and

2. the total rated generating capacity (measured in kW) of farm waste
electric generating equipment that provides electricity to the electric
corporation through the same local feeder line, does not exceed twenty
percent of the rated capacity of that local feeder line.

(iii) In the event that the total rated generating capacity of farm
waste electric 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 that local feeder line.

5-a. Safety standards; non-residential solar electric generating
equipment 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-generator 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
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
additional tests, or purchase additional liability insurance provided
that the solar electric generating equipment or micro-hydroelectric
generating 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.

6. Electric restructuring. Notwithstanding the provisions of this
section, including, but not limited to paragraph (b) of subdivision
three of this section, a customer-generator shall comply with any
applicable determinations of the commission relating to restructuring of
the electric industry.

7. 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, 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.