Bill Text: NY A04090 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to rate schedules for net energy metering and to directing the Long Island power authority to adopt a methodology for the establishment of a value of distributed energy resources crediting mechanism.

Spectrum: Partisan Bill (Democrat 36-1)

Status: (Introduced) 2019-02-01 - referred to energy [A04090 Detail]

Download: New_York-2019-A04090-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4090
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 1, 2019
                                       ___________
        Introduced  by  M.  of  A.  ENGLEBRIGHT,  CUSICK, CARROLL, SANTABARBARA,
          BARRON, HUNTER, GOTTFRIED, ORTIZ, COLTON,  ARROYO,  LIFTON,  ABINANTI,
          JAFFEE,  LUPARDO, DAVILA, MOSLEY, SEAWRIGHT, SIMON, WILLIAMS, HYNDMAN,
          NIOU, D'URSO, WOERNER, DICKENS, GALEF, STIRPE, L. ROSENTHAL, MAGNAREL-
          LI, WALLACE, STECK, WEPRIN, PEOPLES-STOKES, GLICK  --  Multi-Sponsored
          by  -- M. of A.  BUCHWALD, COOK, M. L. MILLER, THIELE -- read once and
          referred to the Committee on Energy
        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:
     1    Section 1. Subdivision 1 of section 66-j of the public service law, as
     2  amended by chapter 355 of the laws of 2009, paragraph (a) as amended and
     3  paragraph (h) as added by chapter 546 of the laws of 2011, subparagraphs
     4  (iv) and (v) of paragraph (a) as  separately  amended  and  subparagraph
     5  (vi)  of  paragraph  (a) as added by chapter 530 of the laws of 2011 and
     6  subparagraphs (vii) and (viii) of paragraph (a) as amended and  subpara-
     7  graph (ix) of paragraph (a) as added by chapter 494 of the laws of 2014,
     8  paragraph  (d)  as amended by chapter 253 of the laws of 2013, paragraph
     9  (e) as amended by section 1 of part Z of chapter 58 of the laws of 2016,
    10  and paragraph (g) as amended by chapter 518 of  the  laws  of  2014,  is
    11  amended to read as follows:
    12    1.  Definitions.  As  used  in this section, the following terms shall
    13  have the following meanings:
    14    (a) "Customer-generator" means: (i) a residential customer of an elec-
    15  tric corporation, who owns or operates solar electric generating  equip-
    16  ment  located  and  used  at his or her residence; (ii) a customer of an
    17  electric corporation, who owns or operates farm waste electric  generat-
    18  ing  equipment  located and used at his or her "farm operation," as such
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08460-01-9

        A. 4090                             2
     1  term is defined in subdivision eleven of section three  hundred  one  of
     2  the  agriculture and markets law; (iii) a non-residential customer of an
     3  electric corporation which owns or operates  solar  electric  generating
     4  equipment  located and used at its premises; (iv) a residential customer
     5  of an electric corporation who owns, leases or  operates  micro-combined
     6  heat  and power generating equipment located on the customer's premises;
     7  (v) a residential customer of an electric corporation who  owns,  leases
     8  or  operates  fuel  cell  generating equipment located on the customer's
     9  premises; and (vi) a non-residential customer of an electric corporation
    10  who owns, leases or operates fuel cell generating equipment located  and
    11  used  at  the  customer's  premises;  (vii) a residential customer of an
    12  electric corporation, who owns or operates micro-hydroelectric  generat-
    13  ing equipment located and used at his or her residence; (viii) a non-re-
    14  sidential  customer  of  an  electric corporation which owns or operates
    15  micro-hydroelectric generating equipment located and used at  its  prem-
    16  ises;  and  (ix)  a  non-residential customer of an electric corporation
    17  which owns or operates farm waste electric generating equipment  located
    18  and used at its premises.  Customer-generators also include all residen-
    19  tial  and  non-residential  customers  eligible  to receive credits from
    20  remote net-metered and community  distributed  generating  equipment  as
    21  defined  in  paragraph  (e) of subdivision three of this section and the
    22  commission's orders for implementing a community net metering program.
    23    (b) "Net energy meter" means a meter that measures the reverse flow of
    24  electricity to register the difference between the electricity  supplied
    25  by an electric corporation to the customer-generator and the electricity
    26  provided to the corporation by that customer-generator.
    27    (c) "Net energy metering" means the use of a net energy meter to meas-
    28  ure,  during  the billing period applicable to a customer-generator, the
    29  net amount of  electricity  supplied  by  an  electric  corporation  and
    30  provided to the corporation by a customer-generator.
    31    (d)  "Solar electric generating equipment" means a photovoltaic system
    32  (i) (A) in the case of a residential customer (other than a farm utiliz-
    33  ing a residential meter), with a rated capacity of not more  than  twen-
    34  ty-five  kilowatts; (B) in the case of a customer who owns or operates a
    35  farm operation as such term is defined in subdivision eleven of  section
    36  three  hundred  one of the agriculture and markets law utilizing a resi-
    37  dential meter with a rated capacity of not more than one  hundred  kilo-
    38  watts;  and  (C) in the case of a non-residential customer, with a rated
    39  capacity of not more than [two] five thousand kilowatts; and  (ii)  that
    40  is  manufactured,  installed, and operated in accordance with applicable
    41  government and industry standards, that is  connected  to  the  electric
    42  system and operated in conjunction with an electric corporation's trans-
    43  mission  and distribution facilities, and that is operated in compliance
    44  with any standards and requirements established under this section.
    45    (e) "Farm waste electric generating equipment"  means  equipment  that
    46  generates   electric  energy  from  biogas  produced  by  the  anaerobic
    47  digestion of agricultural  waste,  such  as  livestock  manure,  farming
    48  wastes and food processing wastes with a rated capacity of not more than
    49  [two] five thousand kilowatts, that is:
    50    (i)  manufactured, installed, and operated in accordance with applica-
    51  ble government and industry standards;
    52    (ii) connected to the electric system and operated in conjunction with
    53  an electric corporation's transmission and distribution facilities;
    54    (iii) operated in  compliance  with  any  standards  and  requirements
    55  established under this section;

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     1    (iv)  fueled  at  a  minimum  of  ninety percent on an annual basis by
     2  biogas produced from the anaerobic digestion of agricultural waste  such
     3  as livestock manure materials, crop residues, and food processing waste;
     4  and
     5    (v)  fueled  by  biogas generated by anaerobic digestion with at least
     6  fifty percent by weight of its feedstock being livestock manure  materi-
     7  als on an annual basis.
     8    (f)  "Micro-combined  heat  and  power  generating equipment" means an
     9  integrated, cogenerating building heating and  electrical  power  gener-
    10  ation  system,  operating on any fuel and of any applicable engine, fuel
    11  cell, or other technology, with a rated capacity of at least  one  kilo-
    12  watt  and  not  more  than ten kilowatts electric and any thermal output
    13  that at full load  has  a  design  total  fuel  use  efficiency  in  the
    14  production  of heat and electricity of not less than eighty percent, and
    15  annually produces at least two thousand kilowatt hours of useful  energy
    16  in  the  form  of  electricity that may work in combination with supple-
    17  mental or parallel conventional heating systems, that  is  manufactured,
    18  installed  and  operated  in  accordance  with applicable government and
    19  industry standards, that is connected to the electric system  and  oper-
    20  ated  in  conjunction  with  an  electric corporation's transmission and
    21  distribution facilities.
    22    (g) "Fuel cell electric generating equipment" means:
    23    (i)(A) in the case of a residential customer, a  solid  oxide,  molten
    24  carbonate,  proton exchange membrane or phosphoric acid fuel cell with a
    25  combined rated capacity of not more than ten kilowatts; and (B)  in  the
    26  case  of  a  non-residential  customer, a solid oxide, molten carbonate,
    27  proton exchange membrane or phosphoric acid fuel cell  with  a  combined
    28  rated capacity of not more than [two] five thousand kilowatts; and
    29    (ii)  that  is manufactured, installed and operated in accordance with
    30  applicable government and industry standards, that is connected  to  the
    31  electric  system and operated in parallel with an electric corporation's
    32  transmission and  distribution  facilities,  and  that  is  operated  in
    33  compliance  with  any  standards and requirements established under this
    34  section.
    35    (h) "Micro-hydroelectric generating equipment" means  a  hydroelectric
    36  system  (i)  (A)  in  the  case  of a residential customer, with a rated
    37  capacity of not more than twenty-five kilowatts; and (B) in the case  of
    38  a non-residential customer, with a rated capacity of not more than [two]
    39  five  thousand  kilowatts; and (ii) that is manufactured, installed, and
    40  operated in accordance with applicable government  and  industry  stand-
    41  ards,  that is connected to the electric system and operated in conjunc-
    42  tion with an electric corporation's transmission and distribution facil-
    43  ities, and that  is  operated  in  compliance  with  any  standards  and
    44  requirements established under this section.
    45    (i)  "Distributed  energy  resources" includes, but is not limited to,
    46  farm waste electric generating equipment, fuel cell electric  generating
    47  equipment, micro-combined heat and power generating equipment, micro-hy-
    48  droelectric  generating  equipment,  or solar electric generating equip-
    49  ment.
    50    § 2. Subparagraph (iii) of paragraph (a) of subdivision 3  of  section
    51  66-j of the public service law, as amended by chapter 546 of the laws of
    52  2011, is amended to read as follows:
    53    (iii)  Each electric corporation shall make such contract and schedule
    54  available to customer-generators on a first come,  first  served  basis,
    55  until the total rated generating capacity for solar and farm waste elec-
    56  tric  generating  equipment,  micro-combined  heat  and power generating

        A. 4090                             4
     1  equipment, fuel cell electric generating equipment and  micro-hydroelec-
     2  tric  generating equipment owned, leased or operated by customer-genera-
     3  tors in the corporation's service area is  equivalent  to  [one]  twelve
     4  percent  of  the corporation's electric demand for the year two thousand
     5  five, as determined by the department.
     6    § 3. Paragraph (a) of subdivision 3 of  section  66-j  of  the  public
     7  service  law  is  amended  by  adding a new subparagraph (iv) to read as
     8  follows:
     9    (iv) The model contracts and schedule of rates, terms  and  conditions
    10  for  net  energy metering customer-generators approved by the commission
    11  pursuant to subparagraphs (i) and (ii) of this paragraph and  that  were
    12  in effect as of March first, two thousand eighteen, shall remain in full
    13  force  and  effect  and, subject to the limitation set forth in subpara-
    14  graph (iii) of this paragraph, shall be available to customer-generators
    15  who execute an interconnection agreement with the  electric  corporation
    16  prior  to  December  thirty-first,  two  thousand  twenty-two, and shall
    17  remain available to those customer-generators for the  lifetime  of  the
    18  generating equipment.
    19    §  4.  Paragraph  (a)  of  subdivision 3 of section 66-j of the public
    20  service law is amended by adding a  new  subparagraph  (v)  to  read  as
    21  follows:
    22    (v)(A)  No  later  than  June  thirtieth, two thousand twenty-two, the
    23  commission shall adopt a methodology for the establishment of a value of
    24  distributed energy resources crediting mechanism for customer-generators
    25  which shall fully and accurately account for  the  energy  and  capacity
    26  value  of  the electricity generated, as well as for the long-term value
    27  of public benefits provided by such resources, including but not limited
    28  to, grid security and resilience, climate security, reduced emissions of
    29  greenhouse gases and other air and water pollutants, and  reduced  expo-
    30  sure  to  fuel  price  volatility, environmental justice attributes, and
    31  avoided societal and ratepayer costs from the reduction of energy  bills
    32  for low-income customers. In addition, the commission shall also seek to
    33  ensure  the  predictability  and  simplicity  of the application of this
    34  methodology to  customer-generators.  No  later  than  February  twenty-
    35  eighth,  two  thousand  twenty-two, the department shall publish a draft
    36  methodology for public comment and shall provide a public comment period
    37  of no less than ninety days. Further, the commission shall hold at least
    38  four public hearings about the draft methodology. These  hearings  shall
    39  be held in different regions of the state, shall be held no earlier than
    40  sixty  days  after  the  draft  methodology  is  published, and shall be
    41  announced at least thirty days in advance.
    42    (B)(I) On or before three months after the  commission's  adoption  of
    43  the  methodology required by clause (A) of this subparagraph, each elec-
    44  tric corporation shall file with the commission a model contract  and  a
    45  schedule  that  establishes  consistent  and reasonable rates, terms and
    46  conditions  for  the  value  of  distributed  energy  resource  services
    47  provided  by  residential customer-generators, according to the require-
    48  ments of this section. The commission shall  render  a  decision  within
    49  three months from the date on which the contract and schedule are filed.
    50    (II)  On  or  before  three  months  after  the effective date of this
    51  subparagraph, each electric corporation shall file with the commission a
    52  model contract and a schedule that establishes consistent and reasonable
    53  rates,  terms  and  conditions  for  the  value  of  distributed  energy
    54  resources  services  provided  by  non-residential  customer-generators,
    55  according to the requirements of  this  section.  The  commission  shall

        A. 4090                             5
     1  render  a decision within three months of the date on which the contract
     2  and schedule are filed.
     3    (III)  In  lieu  of  its  previously  effective  net  energy  metering
     4  contracts and  schedules,  each  electric  corporation  shall  make  the
     5  contracts  and  schedules  approved  by  the commission pursuant to this
     6  paragraph available to all customer-generators within its  service  area
     7  seeking to contract with the electric corporation after such approval by
     8  the  commission.  The  limitation  on  net energy metering contracts set
     9  forth in subparagraph (iii) of this paragraph shall not apply  to  value
    10  of distributed energy resources contracts.
    11    (C) Until the commission approves the contracts and schedules filed by
    12  an  electric  corporation  pursuant  to  this subparagraph, any value of
    13  distributed energy resources contracts and  schedules  approved  by  the
    14  commission prior to the effective date of this subparagraph shall remain
    15  in  full  force and effect and shall be available to customer-generators
    16  at their request.
    17    § 5. Paragraph (b) of subdivision 3 of  section  66-j  of  the  public
    18  service  law,  as amended by chapter 546 of the laws of 2011, is amended
    19  to read as follows:
    20    (b) Nothing in this subdivision  shall  prohibit  a  corporation  from
    21  providing  net  energy  metering  to additional customer-generators. The
    22  commission shall have the authority, after January first,  two  thousand
    23  [twelve]  twenty, to increase the percent limits established by subpara-
    24  graph (iii) of paragraph (a) of this subdivision if it  determines  that
    25  additional net energy metering is in the public interest.
    26    § 6. The Long Island power authority shall adopt a methodology for the
    27  establishment of a value of distributed energy resources crediting mech-
    28  anism  generally  consistent  with the requirements set forth in section
    29  66-j of the public service law. The authority shall utilize to the full-
    30  est extent  practicable  technologies  that  rely  on  renewable  energy
    31  resources,  improvements  in  energy efficiency, energy storage systems,
    32  and shall seek to meet or exceed New York state climate change and envi-
    33  ronmental goals.  The authority shall hold no less than two public hear-
    34  ings before establishing such a value of  distributed  energy  resources
    35  crediting  mechanism.  Provided  however,  until  the authority approves
    36  contracts and schedules for such value of distributed  energy  resources
    37  crediting mechanism, any value of distributed energy resources crediting
    38  mechanism contracts and schedules approved by the authority prior to the
    39  effective  date  of  this  act shall remain in full force and effect and
    40  shall be available to customer-generators at their request.
    41    § 7. This act shall take effect on the sixtieth  day  after  it  shall
    42  have  become  a  law;  provided, however, that effective immediately the
    43  public service commission  and  the  Long  Island  power  authority  are
    44  authorized  and  directed  to  promulgate  any  rules and/or regulations
    45  necessary to implement the provisions of this act.
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