S T A T E   O F   N E W   Y O R K
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                                  10565

                          I N  A S S E M B L Y

                              June 6, 2012
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
  read once and referred to the Committee on Energy

AN ACT to amend the public service law, the public authorities  law  and
  the  environmental  conservation  law,  in relation to net metering of
  electric generating facilities; to repeal sections 66-j  and  66-l  of
  the public service law relating to net metering of certain residential
  and non-residential electric generating systems; and to repeal section
  66-k of the public service law and subdivision 10-a of section 1854 of
  the public authorities law relating to sulfur dioxide trading credits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Sections 66-j, 66-k and 66-l of the public service law  are
REPEALED and a new section 66-j is added to read as follows:
  S  66-J.  NET  ENERGY  METERING  FOR SOLAR, WIND, MICRO-HYDROELECTRIC,
MICRO-COMBINED HEAT AND POWER AND FUEL CELL ELECTRIC  GENERATING  EQUIP-
MENT.    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 ELEC-
TRIC CORPORATION, WHO LOCATES AND USES SOLAR, WIND, MICRO-HYDROELECTRIC,
COMBINED HEAT AND POWER OR FUEL CELL ELECTRIC  GENERATING  EQUIPMENT  AT
HIS  OR  HER  PREMISES;  (II)  A  FARM OPERATION CUSTOMER OF AN ELECTRIC
CORPORATION, WHICH LOCATES AND USES FARM WASTE OR WIND ELECTRIC GENERAT-
ING EQUIPMENT AT THE CUSTOMER'S FARM OPERATION, AS SUCH TERM IS  DEFINED
IN  SUBDIVISION  ELEVEN  OF SECTION THREE HUNDRED ONE OF THE AGRICULTURE
AND MARKETS LAW; AND (III) A NON-RESIDENTIAL  CUSTOMER  OF  AN  ELECTRIC
CORPORATION,  WHICH LOCATES AND USES SOLAR, WIND, MICRO-HYDROELECTRIC OR
FUEL CELL ELECTRIC GENERATING EQUIPMENT 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 MEAS-
URE,  DURING  THE BILLING PERIOD APPLICABLE TO A CUSTOMER-GENERATOR, THE
NET AMOUNT OF  ELECTRICITY  SUPPLIED  BY  AN  ELECTRIC  CORPORATION  AND

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

                                                           LBD16091-03-2

A. 10565                            2

PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR FROM ELECTRIC GENER-
ATING  EQUIPMENT  THAT  IS: (I) 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; AND (II) MEETS THE REQUIREMENTS OF PARA-
GRAPH (D) OF THIS SUBDIVISION.
  (D) (I) "SOLAR ELECTRIC GENERATING  EQUIPMENT"  MEANS  A  PHOTOVOLTAIC
SYSTEM  THAT:  (A)  IN  THE  CASE OF A RESIDENTIAL CUSTOMER, HAS A RATED
CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS; AND (B) IN THE CASE  OF
A  NON-RESIDENTIAL  CUSTOMER,  HAS A RATED CAPACITY OF NOT MORE THAN TWO
THOUSAND KILOWATTS.
  (II)  "FARM  WASTE  ELECTRIC  GENERATING  EQUIPMENT"  MEANS  EQUIPMENT
LOCATED  AT  A FARM OPERATION THAT GENERATES ELECTRIC ENERGY FROM BIOGAS
PRODUCED BY THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE, SUCH AS LIVE-
STOCK MANURE, FARMING WASTES AND FOOD PROCESSING  WASTES  WITH  A  RATED
CAPACITY OF NOT MORE THAN ONE THOUSAND KILOWATTS, THAT IS: (A) 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,  FARMING WASTE, CROP RESIDUES, AND FOOD PROCESSING WASTE; AND
(B) FUELED BY BIOGAS GENERATED BY  ANAEROBIC  DIGESTION  WITH  AT  LEAST
FIFTY  PERCENT BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE MATERI-
ALS ON AN ANNUAL BASIS.
  (III) "WIND ELECTRIC GENERATING EQUIPMENT"  MEANS  A  WIND  GENERATION
SYSTEM  THAT:  (A)  IN  THE  CASE OF A RESIDENTIAL CUSTOMER, HAS A RATED
CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS; (B) IN THE  CASE  OF  A
FARM  OPERATION  CUSTOMER,  HAS  A  RATED CAPACITY OF NOT MORE THAN FIVE
HUNDRED KILOWATTS, EXCEPT THAT A FARM OPERATION CUSTOMER THAT IS ALSO  A
NON-RESIDENTIAL  CUSTOMER  MAY NET METER NON-RESIDENTIAL WIND GENERATING
ELECTRIC EQUIPMENT AS DEFINED IN CLAUSE (C) OF  THIS  SUBPARAGRAPH;  AND
(C)  IN  THE CASE OF A NON-RESIDENTIAL CUSTOMER, HAS A RATED CAPACITY OF
NOT MORE THAN TWO THOUSAND KILOWATTS.
  (IV) "MICRO-HYDROELECTRIC GENERATING EQUIPMENT" MEANS A  HYDROELECTRIC
SYSTEM  THAT:  (A)  IN  THE  CASE OF A RESIDENTIAL CUSTOMER, HAS A RATED
CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS; AND (B) IN THE CASE  OF
A  NON-RESIDENTIAL  CUSTOMER,  HAS A RATED CAPACITY OF NOT MORE THAN TWO
THOUSAND KILOWATTS.
  (V) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS  EQUIP-
MENT  THAT  IS  AN INTEGRATED, COGENERATING RESIDENTIAL 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 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 EFFI-
CIENCY 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.
  (VI) "FUEL CELL ELECTRIC GENERATING EQUIPMENT"  MEANS  EQUIPMENT  THAT
IS:    (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 ONE THOUSAND FIVE HUNDRED KILOWATTS.

A. 10565                            3

  2. INTERCONNECTION AND NET ENERGY METERING.  AN  ELECTRIC  CORPORATION
SHALL  PROVIDE  FOR  THE  INTERCONNECTION  OF  SOLAR,  WIND, FARM WASTE,
MICRO-HYDROELECTRIC, MICRO-COMBINED HEAT AND POWER, AND FUEL CELL  ELEC-
TRIC  GENERATING  EQUIPMENT  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  CORPO-
RATION'S  NET  ENERGY  METERING SCHEDULE AND COMPLIES WITH STANDARDS AND
REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
  3. CONDITIONS OF SERVICE. (A) EACH  ELECTRIC  CORPORATION  SHALL  MAKE
AVAILABLE  TO  CUSTOMER-GENERATORS  A MODEL CONTRACT AND SCHEDULES FILED
WITH AND APPROVED  BY  THE  COMMISSION  THAT  ESTABLISH  CONSISTENT  AND
REASONABLE  RATES,  TERMS  AND  CONDITIONS  FOR  NET  ENERGY METERING TO
CUSTOMER-GENERATORS ON A FIRST COME, FIRST SERVED BASIS, UNTIL THE TOTAL
RATED GENERATING CAPACITY FOR  SOLAR,  WIND,  MICRO-HYDROELECTRIC,  FARM
WASTE,  MICRO-COMBINED HEAT AND POWER, AND FUEL CELL ELECTRIC GENERATING
EQUIPMENT LOCATED AND USED BY CUSTOMER-GENERATORS IN  THE  CORPORATION'S
SERVICE AREA IS EQUIVALENT TO ONE AND THREE-TENTHS PERCENT OF THE CORPO-
RATION'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 TRANSFOR-
MERS, OR OTHER EQUIPMENT:
  (I) IN THE CASE OF A RESIDENTIAL CUSTOMER-GENERATOR  WHO  LOCATES  AND
USES AT HIS OR HER PREMISES SOLAR, WIND, MICRO-HYDROELECTRIC, MICRO-COM-
BINED  HEAT  OR  POWER  OR FUEL CELL ELECTRIC GENERATING EQUIPMENT, OR A
NON-RESIDENTIAL CUSTOMER-GENERATOR WHICH LOCATES AND USES AT  ITS  PREM-
ISES  SOLAR,  WIND, MICRO-HYDROELECTRIC OR FUEL CELL 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 FARM OPERATION CUSTOMER-GENERATOR WHO LOCATES
AND USES FARM WASTE OR WIND ELECTRIC GENERATING EQUIPMENT AT THE CUSTOM-
ER'S FARM OPERATION, UP TO A TOTAL AMOUNT OF FIVE THOUSAND DOLLARS; AND
  (III) IN THE CASE OF A NON-RESIDENTIAL CUSTOMER-GENERATOR WHO  LOCATES
AND  USES SOLAR, WIND, MICRO-HYDROELECTRIC, OR FUEL CELL ELECTRIC GENER-
ATING EQUIPMENT WITH A RATED CAPACITY OF MORE THAN TWENTY-FIVE KILOWATTS
AT ITS PREMISES, SUCH COST SHALL BE AS DETERMINED BY THE ELECTRIC CORPO-
RATION 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  PARA-
GRAPH (D) OF SUBDIVISION FOUR OF THIS SECTION.
  (E)  A  FARM  OPERATION CUSTOMER-GENERATOR OR A NON-RESIDENTIAL SOLAR,
WIND OR MICRO-HYDROELECTRIC CUSTOMER-GENERATOR  THAT  LOCATES  AND  USES
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

A. 10565                            4

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. 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 CORPO-
RATION  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  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 CUSTOMER-GENERATORS, WHO  WILL  BE  CREDITED  AT  THE
CORPORATION'S  AVOIDED COSTS. THE AVOIDED COST CREDIT PROVIDED TO MICRO-
COMBINED HEAT AND POWER OR FUEL CELL CUSTOMER-GENERATORS SHALL BE TREAT-
ED 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 A RESIDENTIAL SOLAR, WIND
OR MICRO-HYDROELECTRIC CUSTOMER-GENERATOR OR A FARM OPERATION  CUSTOMER-
GENERATOR FOR THE VALUE OF ANY REMAINING CREDIT FOR THE EXCESS ELECTRIC-
ITY  PRODUCED  DURING  THE  YEAR  OR  OVER  THE ANNUALIZED PERIOD BY THE
CUSTOMER-GENERATOR.
  (D) IN THE  EVENT  THAT  THE  CORPORATION  IMPOSES  CHARGES  BASED  ON
KILO-WATT  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 CUSTOM-
ER-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) EACH  ELECTRIC  CORPORATION  SHALL  ESTABLISH
STANDARDS  THAT ARE NECESSARY FOR THE INTERCONNECTION OF ELECTRIC GENER-
ATING EQUIPMENT NET METERED BY CUSTOMER-GENERATORS  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 ELECTRIC GENERAT-
ING EQUIPMENT NET METERED BY CUSTOMER-GENERATORS FROM THE UTILITY SYSTEM
FOR VOLTAGE AND FREQUENCY DEVIATIONS; AND

A. 10565                            5

  (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 ELECTRIC GENERAT-
ING 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.
  (C) AN ELECTRIC CORPORATION MAY NOT  REQUIRE  A  RESIDENTIAL  OR  FARM
OPERATION   CUSTOMER-GENERATOR  TO  COMPLY  WITH  ADDITIONAL  SAFETY  OR
PERFORMANCE STANDARDS, PERFORM OR PAY FOR ADDITIONAL TESTS, OR  PURCHASE
ADDITIONAL  LIABILITY  INSURANCE  PROVIDED THAT THE CUSTOMER-GENERATOR'S
NET METERED ELECTRIC GENERATING EQUIPMENT  MEETS  THE  SAFETY  STANDARDS
ESTABLISHED PURSUANT TO THIS SUBDIVISION.
  (D)  IN  THE  EVENT  THAT  THE TOTAL RATED GENERATING CAPACITY OF FARM
WASTE AND FARM WIND ELECTRIC GENERATING EQUIPMENT  THAT  PROVIDES  ELEC-
TRICITY  TO  AN ELECTRIC CORPORATION THROUGH A LOCAL FEEDER LINE EXCEEDS
TWENTY PERCENT OF THE RATED CAPACITY OF THE LOCAL FEEDER LINE, THE ELEC-
TRIC CORPORATION MAY  REQUIRE  THE  CUSTOMER-GENERATOR  TO  COMPLY  WITH
REASONABLE MEASURES TO ENSURE THE SAFETY OF THAT LOCAL FEEDER LINE.
  (E) AN ELECTRIC CORPORATION MAY REQUIRE A FARM OPERATION CUSTOMER-GEN-
ERATOR  OR  A  NON-RESIDENTIAL  SOLAR, WIND, MICRO-HYDROELECTRIC OR FUEL
CELL CUSTOMER-GENERATOR WITH A RATED CAPACITY OF MORE  THAN  TWENTY-FIVE
KILOWATTS  THAT PROVIDES ELECTRICITY TO THE ELECTRIC CORPORATION THROUGH
A LOCAL FEEDER LINE TO COMPLY WITH REASONABLE  MEASURES  TO  ENSURE  THE
SAFETY OF THAT LOCAL FEEDER LINE.
  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 APPLI-
CABLE  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.
  S  2. 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 AND NET METERING 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 generating equipment owned or operated  by  non-resi-
dential  customers,  (D) micro-combined heat and power generating equip-
ment owned, leased or operated by residential customers, (E)  fuel  cell
electric  generating  equipment owned, leased or operated by residential
customers,  and  (F)  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

A. 10565                            6

increase  the efficiency of energy end use, to shift demand from periods
of high demand to periods of low demand and to facilitate  the  develop-
ment of cogeneration[; and (ii) wind electric generating equipment owned
or  operated by customer-generators and for net energy metering consist-
ent with section sixty-six-l of the public service law].
  S 3. Section 1020-cc of the public  authorities  law,  as  amended  by
chapter 413 of the laws of 2011, is amended to read as follows:
  S  1020-cc.  Authority  subject to certain provisions contained in the
state finance law, the public service law, the social services  law  and
the  general  municipal  law.  All  contracts  of the authority shall be
subject to the provisions of the state finance law relating to contracts
made by the state. The authority shall also establish  rules  and  regu-
lations  with  respect to providing to its residential gas, electric and
steam utility customers those rights and protections provided in article
two and sections one hundred seventeen and one hundred eighteen  of  the
public  service  law  and section one hundred thirty-one-s of the social
services law. The  authority  shall  conform  to  any  safety  standards
regarding  manual lockable disconnect switches for solar electric gener-
ating equipment established by the public service commission pursuant to
subparagraph (ii) of paragraph (a) of subdivision five [and subparagraph
(ii) of paragraph (a) of subdivision five-a] of section  sixty-six-j  of
the   public   service  law.  The  authority  shall  let  contracts  for
construction or purchase of supplies, materials, or  equipment  pursuant
to  section  one  hundred three and paragraph (e) of subdivision four of
section one hundred twenty-w of the general municipal law.
  S 4. Subdivision 3 of section 19-0921 of the  environmental  conserva-
tion law, as added by chapter 36 of the laws of 2000, is amended to read
as follows:
  3.  The  commissioner  shall  make a written report to the legislature
upon his finding that a Federal law has been enacted that will result in
at least a fifty percent reduction in the emissions of SO2[, as  defined
in  section sixty-six-k of the public service law,] by electric generat-
ing sources pursuant to title four of the Federal Clean  Air  Act  after
full implementation.
  S 5. Subdivision 10-a of section 1854 of the public authorities law is
REPEALED.
  S 6. This act shall take effect immediately.