S T A T E O F N E W Y O R K ________________________________________________________________________ 6170 2013-2014 Regular Sessions I N A S S E M B L Y March 15, 2013 ___________ Introduced by M. of A. ENGLEBRIGHT, BENEDETTO, SWEENEY, JACOBS, MAISEL, RIVERA, MARKEY, GALEF, MILLMAN, CAHILL, GUNTHER, LUPARDO, MAGNARELLI, SCHIMMINGER, HOOPER, O'DONNELL, ROSENTHAL, BROOK-KRASNY, TITONE, JAFFEE, KAVANAGH -- Multi-Sponsored by -- M. of A. BOYLAND, BRENNAN, COLTON, COOK, GIGLIO, GOTTFRIED, KOLB, P. LOPEZ, MAGEE, PAULIN, WEIN- STEIN -- read once and referred to the Committee on Energy AN ACT to amend the public service law and the public authorities law, in relation to net energy metering for solar, wind, fuel cell and farm waste electric generating systems; and to repeal sections 66-j and 66-l of the public service law relating to net energy metering THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Sections 66-j and 66-l of the public service law are 2 REPEALED and a new section 66-j is added to read as follows: 3 S 66-J. NET ENERGY METERING FOR SOLAR, WIND, FUEL CELL OR FARM WASTE 4 ELECTRIC GENERATING SYSTEMS, OR MICRO-COMBINED HEAT AND POWER GENERATING 5 EQUIPMENT, AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT. 1. DEFINITIONS. 6 AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING 7 MEANINGS: 8 (A) "CUSTOMER-GENERATOR" MEANS: (I) ANY CUSTOMER OF AN ELECTRIC CORPO- 9 RATION, WHO OWNS OR OPERATES SOLAR, WIND OR FUEL CELL ELECTRIC GENERAT- 10 ING EQUIPMENT, OR ANY HYBRID EQUIPMENT OF THESE THREE TECHNOLOGIES 11 LOCATED AND USED AT HIS OR HER PREMISES; (II) A CUSTOMER OF AN ELECTRIC 12 CORPORATION, WHO OWNS OR OPERATES FARM WASTE ELECTRIC GENERATING EQUIP- 13 MENT LOCATED AND USED AT HIS OR HER "FARM OPERATION," AS SUCH TERM IS 14 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRI- 15 CULTURE AND MARKETS LAW; (III) A RESIDENTIAL CUSTOMER OF AN ELECTRIC 16 CORPORATION WHO OWNS, LEASES OR OPERATES MICRO-COMBINED HEAT AND POWER 17 GENERATING EQUIPMENT LOCATED ON THE CUSTOMER'S PREMISES; (IV) A RESIDEN- 18 TIAL CUSTOMER OF AN ELECTRIC CORPORATION, WHO OWNS OR OPERATES MICRO-HY- 19 DROELECTRIC GENERATING EQUIPMENT LOCATED AND USED AT HIS OR HER RESI- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07273-01-3 A. 6170 2 1 DENCE; AND (V) A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION 2 WHICH OWNS OR OPERATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT LOCATED 3 AND USED AT ITS PREMISES. 4 (B) "NET ENERGY METER" MEANS A METER THAT MEASURES THE REVERSE FLOW OF 5 ELECTRICITY TO REGISTER THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED 6 BY AN ELECTRIC CORPORATION TO THE CUSTOMER-GENERATOR AND THE ELECTRICITY 7 PROVIDED TO THE CORPORATION BY THAT CUSTOMER-GENERATOR. 8 (C) "NET ENERGY METERING" MEANS THE USE OF A NET ENERGY METER TO MEAS- 9 URE, DURING THE BILLING PERIOD APPLICABLE TO A CUSTOMER-GENERATOR, THE 10 NET AMOUNT OF ELECTRICITY SUPPLIED BY AN ELECTRIC CORPORATION AND 11 PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR. 12 (D) "SOLAR ELECTRIC GENERATING EQUIPMENT" MEANS A PHOTOVOLTAIC SYSTEM 13 (I) WITH A RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS; AND 14 (II) THAT IS MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH 15 APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE 16 ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPORATION'S 17 TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS OPERATED IN 18 COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS 19 SECTION. 20 (E) "FARM WASTE ELECTRIC GENERATING EQUIPMENT" MEANS EQUIPMENT THAT 21 GENERATES ELECTRIC ENERGY FROM BIOGAS PRODUCED BY THE ANAEROBIC 22 DIGESTION OF AGRICULTURAL WASTE, SUCH AS LIVESTOCK MANURE, FARMING 23 WASTES AND FOOD PROCESSING WASTES WITH A RATED CAPACITY OF NOT MORE THAN 24 TWO THOUSAND KILOWATTS, THAT IS: 25 (I) MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH APPLICA- 26 BLE GOVERNMENT AND INDUSTRY STANDARDS; 27 (II) CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH 28 AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES; 29 (III) OPERATED IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS 30 ESTABLISHED UNDER THIS SECTION; 31 (IV) FUELED AT A MINIMUM OF NINETY PERCENT ON AN ANNUAL BASIS BY 32 BIOGAS PRODUCED FROM THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE SUCH 33 AS LIVESTOCK MANURE MATERIALS, CROP RESIDUES, AND FOOD PROCESSING WASTE; 34 AND 35 (V) FUELED BY BIOGAS GENERATED BY ANAEROBIC DIGESTION WITH AT LEAST 36 FIFTY PERCENT BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE MATERI- 37 ALS ON AN ANNUAL BASIS. 38 (F) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS AN 39 INTEGRATED, COGENERATING BUILDING HEATING AND ELECTRICAL POWER GENER- 40 ATION SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE, FUEL 41 CELL, OR OTHER TECHNOLOGY, WITH A RATED CAPACITY OF AT LEAST ONE KILO- 42 WATT AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT 43 THAT AT FULL LOAD HAS A DESIGN TOTAL FUEL USE EFFICIENCY IN THE 44 PRODUCTION OF HEAT AND ELECTRICITY OF NOT LESS THAN EIGHTY PERCENT, AND 45 ANNUALLY PRODUCES AT LEAST TWO THOUSAND KILOWATT HOURS OF USEFUL ENERGY 46 IN THE FORM OF ELECTRICITY THAT MAY WORK IN COMBINATION WITH SUPPLE- 47 MENTAL OR PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED, 48 INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND 49 INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER- 50 ATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND 51 DISTRIBUTION FACILITIES. 52 (G) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS: 53 (I) A SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOS- 54 PHORIC ACID FUEL CELL WITH A COMBINED RATED CAPACITY OF NOT MORE THAN 55 TWO THOUSAND KILOWATTS; AND A. 6170 3 1 (II) THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH 2 APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE 3 ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPORATION'S 4 TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS OPERATED IN 5 COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS 6 SECTION. 7 (H) "MICRO-HYDROELECTRIC GENERATING EQUIPMENT" MEANS A HYDROELECTRIC 8 SYSTEM (I) (A) IN THE CASE OF A RESIDENTIAL CUSTOMER, WITH A RATED 9 CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS; AND (B) IN THE CASE OF 10 A NON-RESIDENTIAL CUSTOMER, WITH A RATED CAPACITY OF NOT MORE THAN TWO 11 THOUSAND KILOWATTS; AND (II) THAT IS MANUFACTURED, INSTALLED, AND OPER- 12 ATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, 13 THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION 14 WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES, 15 AND THAT IS OPERATED IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS 16 ESTABLISHED UNDER THIS SECTION. 17 (I) "WIND ELECTRIC GENERATING EQUIPMENT" MEANS A WIND GENERATOR OR 18 GENERATORS WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TWO THOUSAND 19 KILOWATTS THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE 20 WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO 21 THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPO- 22 RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS OPERATED 23 IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS 24 SECTION. 25 (J) "ELECTRIC CORPORATION" MEANS ANY PUBLIC OR PRIVATELY OWNED ENTITY 26 THAT OFFERS RETAIL ELECTRICAL SERVICE TO END-USE ELECTRIC CONSUMERS. 27 (K) "ELIGIBLE TECHNOLOGIES" MEANS THE SOLAR, WIND, FUEL CELL OR FARM 28 WASTE ELECTRIC GENERATING EQUIPMENT. 29 2. INTERCONNECTION AND NET ENERGY METERING. AN ELECTRIC CORPORATION 30 SHALL PROVIDE FOR THE INTERCONNECTION OF ELIGIBLE TECHNOLOGIES, 31 MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT, AND MICRO-HYDROELEC- 32 TRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A CUSTOMER-GENERATOR AND 33 FOR NET ENERGY METERING, PROVIDED THAT THE CUSTOMER-GENERATOR ENTERS 34 INTO A NET ENERGY METERING CONTRACT WITH THE CORPORATION OR COMPLIES 35 WITH THE CORPORATION'S NET ENERGY METERING SCHEDULE AND COMPLIES WITH 36 STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION. 37 3. CONDITIONS OF SERVICE. (A) ON OR BEFORE THREE MONTHS AFTER THE 38 EFFECTIVE DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL DEVELOP 39 A MODEL CONTRACT AND FILE A SCHEDULE THAT ESTABLISHES CONSISTENT AND 40 REASONABLE RATES, TERMS AND CONDITIONS FOR NET ENERGY METERING TO 41 CUSTOMER-GENERATORS, ACCORDING TO THE REQUIREMENTS OF THIS SECTION. THE 42 COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS FROM THE DATE ON 43 WHICH THE SCHEDULE IS FILED. 44 (B) AN ELECTRIC CORPORATION SHALL IMPOSE NO OTHER CHARGE OR FEE, 45 INCLUDING, BUT NOT LIMITED TO, BACK-UP, STAND BY AND DEMAND CHARGES, FOR 46 THE PROVISION OF NET ENERGY METERING TO A CUSTOMER-GENERATOR, EXCEPT AS 47 PROVIDED IN PARAGRAPH (D) OF SUBDIVISION FOUR OF THIS SECTION. 48 (C) A CUSTOMER WHO OWNS OR OPERATES A FARM OPERATION AS SUCH TERM IS 49 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRI- 50 CULTURE AND MARKETS LAW, OR A RESIDENTIAL CUSTOMER-GENERATOR AS DEFINED 51 BY SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION ONE OF THIS 52 SECTION THAT LOCATES SOLAR ELECTRIC GENERATING EQUIPMENT OR FARM WASTE 53 ELECTRIC GENERATING EQUIPMENT WITH A NET ENERGY METER ON PROPERTY OWNED 54 OR LEASED BY SUCH CUSTOMER-GENERATOR MAY DESIGNATE ALL OR A PORTION OF 55 THE NET METERING CREDITS GENERATED BY SUCH EQUIPMENT TO METERS AT ANY 56 PROPERTY OWNED OR LEASED BY SUCH CUSTOMER-GENERATOR WITHIN THE SERVICE A. 6170 4 1 TERRITORY OF THE SAME ELECTRIC CORPORATION TO WHICH THE 2 CUSTOMER-GENERATOR'S NET ENERGY METERS ARE INTERCONNECTED AND BEING 3 WITHIN THE SAME LOAD ZONE AS DETERMINED BY THE LOCATION BASED MARGINAL 4 PRICE AS OF THE DATE OF INITIAL REQUEST BY THE CUSTOMER-GENERATOR TO 5 CONDUCT NET METERING. THE ELECTRIC CORPORATION WILL CREDIT THE ACCOUNTS 6 OF THE CUSTOMER BY APPLYING ANY CREDITS TO THE HIGHEST USE METER FIRST, 7 THEN SUBSEQUENT HIGHEST USE METERS UNTIL ALL SUCH CREDITS ARE ATTRIBUTED 8 TO THE CUSTOMER. ANY EXCESS CREDITS SHALL BE CARRIED OVER TO THE FOLLOW- 9 ING MONTH. 10 (D) A CUSTOMER WHO OWNS OR OPERATES A FARM OPERATION AS SUCH TERM IS 11 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRI- 12 CULTURE AND MARKETS LAW, OR A NON-RESIDENTIAL CUSTOMER-GENERATOR AS 13 DEFINED BY SUBPARAGRAPH (V) OF PARAGRAPH (A) OF SUBDIVISION ONE OF THIS 14 SECTION THAT LOCATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT WITH A NET 15 ENERGY METER ON PROPERTY OWNED OR LEASED BY SUCH CUSTOMER-GENERATOR MAY 16 DESIGNATE ALL OR A PORTION OF THE NET METERING CREDITS GENERATED BY SUCH 17 EQUIPMENT TO METERS AT ANY PROPERTY OWNED OR LEASED BY SUCH 18 CUSTOMER-GENERATOR WITHIN THE SERVICE TERRITORY OF THE SAME ELECTRIC 19 CORPORATION TO WHICH THE CUSTOMER-GENERATOR'S NET ENERGY METERS ARE 20 INTERCONNECTED AND BEING WITHIN THE SAME LOAD ZONE AS DETERMINED BY THE 21 LOCATION BASED MARGINAL PRICE AS OF THE DATE OF INITIAL REQUEST BY THE 22 CUSTOMER-GENERATOR TO CONDUCT NET METERING. THE ELECTRIC CORPORATION 23 WILL CREDIT THE ACCOUNTS OF THE CUSTOMER BY APPLYING ANY CREDITS TO THE 24 HIGHEST USE METER FIRST, THEN SUBSEQUENT HIGHEST USE METERS UNTIL ALL 25 SUCH CREDITS ARE ATTRIBUTED TO THE CUSTOMER. ANY EXCESS CREDITS SHALL BE 26 CARRIED OVER TO THE FOLLOWING MONTH. 27 4. RATES. AN ELECTRIC CORPORATION SHALL USE NET ENERGY METERING TO 28 MEASURE AND CHARGE FOR THE NET ELECTRICITY SUPPLIED BY THE CORPORATION 29 AND PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR, ACCORDING TO 30 THESE REQUIREMENTS: 31 (A) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY SUPPLIED BY THE CORPO- 32 RATION DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY 33 PROVIDED BY A CUSTOMER-GENERATOR, THE CORPORATION SHALL CHARGE THE 34 CUSTOMER-GENERATOR FOR THE NET ELECTRICITY SUPPLIED AT THE SAME RATE PER 35 KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER CUSTOMERS IN THE 36 SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ONSITE. 37 (B) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY PRODUCED BY A CUSTOM- 38 ER-GENERATOR DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY 39 USED BY THE CUSTOMER-GENERATOR, THE CORPORATION SHALL APPLY A CREDIT TO 40 THE NEXT BILL FOR SERVICE TO THE CUSTOMER-GENERATOR FOR THE NET ELEC- 41 TRICITY PROVIDED AT THE SAME RATE PER KILOWATT HOUR APPLICABLE TO 42 SERVICE PROVIDED TO OTHER CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO 43 NOT GENERATE ELECTRICITY ONSITE, EXCEPT FOR MICRO-COMBINED HEAT AND 44 POWER OR FUEL CELL CUSTOMER-GENERATORS, WHO WILL BE CREDITED AT THE 45 CORPORATION'S AVOIDED COSTS. THE AVOIDED COST CREDIT PROVIDED TO MICRO- 46 COMBINED HEAT AND POWER OR FUEL CELL CUSTOMER-GENERATORS SHALL BE TREAT- 47 ED FOR RATEMAKING PURPOSES AS A PURCHASE OF ELECTRICITY IN THE MARKET 48 THAT IS INCLUDABLE IN COMMODITY COSTS. 49 (C) AT THE END OF THE YEAR OR ANNUALIZED OVER THE PERIOD THAT SERVICE 50 IS SUPPLIED BY MEANS OF NET ENERGY METERING, THE CORPORATION SHALL 51 PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO THE CUSTOMER-GENERATOR, AS 52 DEFINED IN SUBPARAGRAPH (I) OR (II) OF PARAGRAPH (A) OF SUBDIVISION ONE 53 OF THIS SECTION, FOR THE VALUE OF ANY REMAINING CREDIT FOR THE EXCESS 54 ELECTRICITY PRODUCED DURING THE YEAR OR OVER THE ANNUALIZED PERIOD BY 55 THE CUSTOMER-GENERATOR. A. 6170 5 1 (D) IN THE EVENT THAT THE CORPORATION IMPOSES CHARGES BASED ON KILO- 2 WATT DEMAND ON CUSTOMERS WHO ARE IN THE SAME SERVICE CLASS AS THE 3 CUSTOMER-GENERATOR BUT WHICH DO NOT GENERATE ELECTRICITY ON SITE, THE 4 CORPORATION MAY IMPOSE THE SAME CHARGES AT THE SAME RATES TO THE CUSTOM- 5 ER-GENERATOR, PROVIDED, HOWEVER, THAT THE KILOWATT DEMAND FOR SUCH 6 DEMAND CHARGES IS DETERMINED BY THE MAXIMUM MEASURED KILOWATT DEMAND 7 ACTUALLY SUPPLIED BY THE CORPORATION TO THE CUSTOMER-GENERATOR DURING 8 THE BILLING PERIOD. 9 (E) NET ENERGY METERING SHALL BE ACCOMPLISHED USING A SINGLE METER 10 CAPABLE OF REGISTERING THE FLOW OF ELECTRICITY IN TWO DIRECTIONS. AN 11 ADDITIONAL METER OR METERS TO MONITOR THE FLOW OF ELECTRICITY IN EACH 12 DIRECTION MAY BE INSTALLED WITH THE CONSENT OF THE CUSTOMER-GENERATOR, 13 AT THE EXPENSE OF THE ELECTRIC CORPORATION, AND THE ADDITIONAL METERING 14 SHALL BE USED ONLY TO PROVIDE THE INFORMATION NECESSARY TO ACCURATELY 15 BILL OR CREDIT THE CUSTOMER-GENERATOR PURSUANT TO PARAGRAPH (F) OF THIS 16 SUBDIVISION, OR TO COLLECT SYSTEM PERFORMANCE INFORMATION ON THE ELIGI- 17 BLE TECHNOLOGY FOR RESEARCH PURPOSES. IF THE EXISTING ELECTRICAL METER 18 OF AN ELIGIBLE CUSTOMER-GENERATOR IS NOT CAPABLE OF MEASURING THE FLOW 19 OF ELECTRICITY IN TWO DIRECTIONS AND PROVIDED THE REASON THE METER IS 20 NOT CAPABLE OF MEASURING THE FLOW IN TWO DIRECTIONS IS NOT RELATED 21 EITHER TO A MECHANICAL DEVICE INSTALLED BY AN ELECTRIC CORPORATION OR 22 SUCH CORPORATION'S SELECTION OF A METER WITHOUT THIS CAPABILITY WHEN 23 OTHER METERS CAPABLE OF MEASURING THE FLOW OF ELECTRICITY IN TWO 24 DIRECTIONS WERE AVAILABLE TO THE ELECTRIC CORPORATION, THE CUSTOMER-GEN- 25 ERATOR SHALL BE RESPONSIBLE FOR ALL EXPENSES INVOLVED IN PURCHASING AND 26 INSTALLING A METER THAT IS ABLE TO MEASURE THE FLOW OF ELECTRICITY IN 27 TWO DIRECTIONS. IF AN ADDITIONAL METER OR METERS ARE INSTALLED, THE NET 28 ENERGY METERING CALCULATION SHALL YIELD A RESULT IDENTICAL TO THAT OF A 29 SINGLE METER. 30 (F) EVERY ELECTRIC CORPORATION SHALL DEVELOP A STANDARD CONTRACT OR 31 TARIFF PROVIDING FOR NET ENERGY METERING, AND SHALL MAKE THIS CONTRACT 32 AVAILABLE TO ELIGIBLE CUSTOMER-GENERATORS, UPON REQUEST. EVERY ELECTRIC 33 CORPORATION SHALL ENSURE THAT REQUESTS FOR ESTABLISHMENT OF NET ENERGY 34 METERING ARE PROCESSED IN A TIME PERIOD NOT EXCEEDING THAT FOR SIMILARLY 35 SITUATED CUSTOMERS REQUESTING NEW ELECTRIC SERVICE, BUT NOT TO EXCEED 36 ONE MONTH FROM THE DATE THE ELECTRIC CORPORATION RECEIVES A COMPLETED 37 APPLICATION FORM FROM AN ELIGIBLE CUSTOMER-GENERATOR. IF AN ELECTRIC 38 CORPORATION IS UNABLE TO PROCESS THE REQUEST WITHIN THE ALLOWABLE TIME- 39 FRAME, THE ELECTRIC CORPORATION SHALL NOTIFY THE CUSTOMER-GENERATOR OF 40 THE REASON FOR ITS INABILITY TO PROCESS THE REQUEST AND THE DATE THE 41 REQUEST WILL BE COMPLETED. EVERY ELECTRIC CORPORATION SHALL MAKE ALL 42 NECESSARY FORMS AND CONTRACTS FOR NET ENERGY METERING AVAILABLE FOR 43 DOWNLOAD FROM THE INTERNET. 44 (G) EACH NET ENERGY METERING CONTRACT OR TARIFF SHALL BE IDENTICAL, 45 WITH RESPECT TO RATE STRUCTURE, ALL RETAIL RATE COMPONENTS AND ANY 46 MONTHLY CHARGES, TO THE CONTRACT OR TARIFF TO WHICH THE SAME CUSTOMER 47 WOULD BE ASSIGNED IF SUCH CUSTOMER WAS NOT AN ELIGIBLE CUSTOMER-GENERA- 48 TOR, EXCEPT THAT ELIGIBLE CUSTOMER-GENERATORS SHALL NOT BE ASSESSED 49 STANDBY CHARGES ON THE ELECTRICAL GENERATING CAPACITY OR THE 50 KILOWATT-HOUR PRODUCTION OF AN ELIGIBLE TECHNOLOGY. THE CHARGES FOR ALL 51 RETAIL RATE COMPONENTS FOR ELIGIBLE CUSTOMER-GENERATORS SHALL BE BASED 52 EXCLUSIVELY ON THE CUSTOMER-GENERATOR'S NET KILOWATT-HOUR CONSUMPTION 53 OVER A TWELVE MONTH PERIOD, WITHOUT REGARD TO THE CUSTOMER-GENERATOR'S 54 CHOICE OF ELECTRIC CORPORATION. ANY NEW OR ADDITIONAL DEMAND CHARGE, 55 STANDBY CHARGE, CUSTOMER CHARGE, MINIMUM MONTHLY CHARGE, INTERCONNECTION 56 CHARGE OR OTHER CHARGE THAT WOULD INCREASE AN ELIGIBLE A. 6170 6 1 CUSTOMER-GENERATOR'S COSTS BEYOND THOSE OF OTHER CUSTOMERS IN THE RATE 2 CLASS TO WHICH THE ELIGIBLE CUSTOMER-GENERATOR WOULD OTHERWISE BE 3 ASSIGNED ARE CONTRARY TO THE INTENT OF THIS SECTION, AND SHALL NOT FORM 4 A PART OF NET ENERGY METERING CONTRACTS OR TARIFFS. 5 (H) FOR ALL ELIGIBLE CUSTOMER-GENERATORS TAKING SERVICE UNDER TARIFFS 6 EMPLOYING "TIME OF USE" RATES, ANY NET MONTHLY CONSUMPTION OF ELECTRIC- 7 ITY SHALL BE CALCULATED ACCORDING TO THE TERMS OF THE CONTRACT OR TARIFF 8 WHICH THE SAME CUSTOMER WOULD BE ASSIGNED TO OR BE ELIGIBLE FOR IF THE 9 CUSTOMER WAS NOT AN ELIGIBLE CUSTOMER-GENERATOR. WHEN THOSE SAME CUSTOM- 10 ER-GENERATORS ARE NET GENERATORS DURING ANY DISCRETE TIME OF USE PERIOD, 11 THE NET KILOWATT-HOURS PRODUCED SHALL BE VALUED AT THE SAME PRICE PER 12 KILOWATT-HOUR AS THE ELECTRIC CORPORATION WOULD CHARGE FOR RETAIL KILO- 13 WATT-HOUR SALES DURING THAT SAME TIME OF USE PERIOD AND THAT VALUE SHALL 14 BE APPLIED AS A CREDIT TO ANY OF THE DISCRETE TIME OF USE PERIODS UNDER 15 THE TARIFF. IF THE ELIGIBLE CUSTOMER-GENERATOR'S TIME OF USE ELECTRICAL 16 METER IS UNABLE TO MEASURE THE FLOW OF ELECTRICITY IN TWO DIRECTIONS, 17 THE PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION SHALL APPLY. 18 5. SAFETY STANDARDS. (A) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE 19 DATE OF PARAGRAPH (B) OF THIS SUBDIVISION, THE COMMISSION SHALL ESTAB- 20 LISH STANDARDS FOR INTERCONNECTION OF GENERATORS, TAKING INTO ACCOUNT 21 APPLICABLE INDUSTRY STANDARDS INCLUDING IEEE 1541, AND BEST PRACTICES 22 INCLUDED IN THE INTERSTATE RENEWABLE ENERGY COUNCIL'S MODEL INTERCON- 23 NECTION RULES MR-12005. SUCH STANDARDS SHALL NOT BE MORE RESTRICTIVE OF 24 INTERCONNECTION THAN STANDARDS ESTABLISHED IN FERC ORDERS 2006 AND 2006A 25 AS OF THE EFFECTIVE DATE OF PARAGRAPH (B) OF THIS SUBDIVISION. 26 (B) THE COMMISSION SHALL PROMULGATE REGULATIONS ENSURING THAT SIMPLI- 27 FIED CONTRACTS WILL BE USED FOR THE INTERCONNECTION OF GENERATORS THAT 28 HAVE A PRODUCTION CAPACITY NOT EXCEEDING TWO THOUSAND KILOWATTS AND 29 SHALL CONSIDER THE BEST PRACTICES FOR CONSUMER FRIENDLY CONTRACTS 30 ADOPTED BY NATIONAL ASSOCIATIONS OF STATE UTILITY REGULATORS. SUCH 31 CONTRACTS SHALL NOT REQUIRE LIABILITY OR OTHER INSURANCE IN EXCESS OF 32 WHAT IS TYPICALLY CARRIED BY CUSTOMER-GENERATORS FOR GENERAL LIABILITY. 33 6. SAFETY STANDARDS; NON-RESIDENTIAL SOLAR ELECTRIC GENERATING EQUIP- 34 MENT AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT. (A) ON OR BEFORE 35 THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, EACH ELECTRIC 36 CORPORATION SHALL ESTABLISH STANDARDS THAT ARE NECESSARY FOR NET ENERGY 37 METERING AND THE INTERCONNECTION OF NON-RESIDENTIAL SOLAR ELECTRIC 38 GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC GENERATING EQUIPMENT TO ITS 39 SYSTEM AND THAT THE COMMISSION SHALL DETERMINE ARE NECESSARY FOR SAFE 40 AND ADEQUATE SERVICE AND FURTHER THE PUBLIC POLICY SET FORTH IN THIS 41 SECTION. SUCH STANDARDS MAY INCLUDE BUT SHALL NOT BE LIMITED TO: 42 (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE SOLAR GENERATING 43 SYSTEM OR MICRO-HYDROELECTRIC GENERATING EQUIPMENT FROM THE UTILITY 44 SYSTEM FOR VOLTAGE AND FREQUENCY DEVIATIONS; AND 45 (II) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY THE CUSTOMER-GEN- 46 ERATOR WHICH SHALL BE LOCATED ON THE OUTSIDE OF THE CUSTOMER-GENERATOR'S 47 PREMISES AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF ISOLATING THE 48 SOLAR ELECTRIC GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC GENERATING 49 EQUIPMENT. 50 (B) IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF SOLAR 51 ELECTRIC GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC GENERATING EQUIP- 52 MENT THAT PROVIDES ELECTRICITY TO THE ELECTRIC CORPORATION THROUGH THE 53 SAME LOCAL FEEDER LINE EXCEEDS TWENTY PERCENT OF THE RATED CAPACITY OF 54 THE LOCAL FEEDER LINE, THE ELECTRIC CORPORATION MAY REQUIRE THE CUSTOM- 55 ER-GENERATOR TO COMPLY WITH REASONABLE MEASURES TO ENSURE SAFETY OF THE 56 LOCAL FEEDER LINE. A. 6170 7 1 (C) UNLESS OTHERWISE DETERMINED TO BE NECESSARY BY THE COMMISSION, AN 2 ELECTRIC CORPORATION MAY NOT REQUIRE A CUSTOMER-GENERATOR TO COMPLY WITH 3 ADDITIONAL SAFETY OR PERFORMANCE STANDARDS, PERFORM OR PAY FOR ADDI- 4 TIONAL TESTS, OR PURCHASE ADDITIONAL LIABILITY INSURANCE PROVIDED THAT 5 THE SOLAR ELECTRIC GENERATING EQUIPMENT OR MICRO-HYDROELECTRIC GENERAT- 6 ING EQUIPMENT MEETS THE SAFETY STANDARDS ESTABLISHED PURSUANT TO THIS 7 SUBDIVISION. 8 (D) UPON ITS OWN MOTION OR UPON A COMPLAINT, THE COMMISSION, OR ITS 9 DESIGNATED REPRESENTATIVE, MAY INVESTIGATE AND MAKE A DETERMINATION AS 10 TO THE REASONABLENESS AND NECESSITY OF THE STANDARDS OR RESPONSIBILITY 11 FOR COMPLIANCE WITH THE STANDARDS. 12 7. ELECTRIC RESTRUCTURING. NOTWITHSTANDING THE PROVISIONS OF THIS 13 SECTION, A CUSTOMER-GENERATOR SHALL COMPLY WITH ANY APPLICABLE DETERMI- 14 NATIONS OF THE COMMISSION RELATING TO RESTRUCTURING OF THE ELECTRIC 15 INDUSTRY. 16 8. SEVERABILITY OF PROVISIONS. THE PROVISIONS OF THIS SECTION SHALL BE 17 SEVERABLE AND IF THE APPLICATION OF ANY CLAUSE, SENTENCE, PARAGRAPH, 18 SUBDIVISION, SECTION, OR PART THEREOF TO ANY PERSON OR CIRCUMSTANCE 19 SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID, 20 SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR, OR INVALIDATE THE 21 APPLICATION OF ANY SUCH CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, 22 SECTION, PART OR REMAINDER THEREOF, AS THE CASE MAY BE, TO ANY OTHER 23 PERSON OR CIRCUMSTANCE, BUT SHALL BE CONFINED IN ITS OPERATION TO THE 24 CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART THEREOF 25 DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE 26 BEEN RENDERED. 27 S 2. Subdivision (h) of section 1020-g of the public authorities law, 28 as amended by chapter 546 of the laws of 2011, is amended to read as 29 follows: 30 (h) To implement programs and policies designed to provide for the 31 interconnection of: (i) [(A)] solar, WIND, FUEL CELL OR FARM WASTE elec- 32 tric generating equipment owned or operated by [residential customers, 33 (B) farm waste electric generating equipment owned or operated by 34 customer-generators, (C) solar electric generating equipment owned or 35 operated by non-residential customers, (D)] CUSTOMER-GENERATORS, (II) 36 micro-combined heat and power generating equipment owned, leased or 37 operated by residential customers, [(E)] (III) fuel cell electric gener- 38 ating equipment owned, leased or operated by residential customers, and 39 [(F)] (IV) micro-hydroelectric generating equipment owned, leased or 40 operated by customer-generators and for net energy metering consistent 41 with section sixty-six-j of the public service law, to increase the 42 efficiency of energy end use, to shift demand from periods of high 43 demand to periods of low demand and to facilitate the development of 44 cogeneration[; and (ii) wind electric generating equipment owned or 45 operated by customer-generators and for net energy metering consistent 46 with section sixty-six-l of the public service law]. 47 S 3. This act shall take effect immediately.