senate Bill S6671

Relates to net metering of electric generating facilities; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Mar / 2012
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 05 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2012
    • REPORTED AND COMMITTED TO RULES

Summary

Relates to net metering of electric generating facilities and repeals sections 66-j, 66-k, and 66-l of the public service law relating to net metering of certain electric generation systems and sulfur dioxide trading credits.

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Bill Details

Versions:
S6671
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Public Service Law
Laws Affected:
Rpld §§66-j, 66-k & 66-l, add §66-j, Pub Serv L; amd §§1020-g & 1020-cc, rpld §1854 sub 10-a, Pub Auth L; amd §19-0921, En Con L; rpld §99-g, St Fin L

Votes

10
0
10
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Energy and Telecommunications committee vote details

Sponsor Memo

BILL NUMBER:S6671

TITLE OF BILL:
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,
subdivision 10-a
of section 1854 of the public authorities law, and section 99-g of the
state finance law
relating to sulfur
dioxide trading credits

PURPOSE OF THE BILL:

The bill would provide for the consistent application of net metering
requirements to all eligible technologies.

SUMMARY OF PROVISIONS:

Section 1 of the bill would add a new Public Service Law ("PSL")
§ 66-j that would merge the provisions of the existing version of PSL
§ 66-j (net metering for residential solar, farm waste, non-residential
solar electric generating systems, micro-combined heat and power
generating equipment, fuel cell electric generating equipment, and
micro-hydroelectric generating equipment) and the provisions of PSL
66-1 (net metering for residential, farm service and non-residential
wind electric generating systems). It would repeal PSL §§ 66-j, 66-k
and 66-l and clarify the availability of net metering for all
customers with eligible facilities.

Sections 2 of the bill would amend Public Authorities Law ("PAL")
§§ 1020-g(h) to conform to the changes made by adding a new PSL
§ 66-j.

Sections 3 of the bill would PAL § 1020-cc to conform to the changes
made by adding a new PSL § 66-j.

Section 4 of the bill would amend Environmental Conservation Law
("ECL") § 19-0921(3) to conform to changes made by repealing PSL
§ 66-k.

Sections 5 would repeal PAL § 1854(10-a).

Sections 6 of the bill would repeal State Finance Law ("SFL") § 99-g.

Section 7 of the bill would make the bill effective immediately upon
enactment into law.

EXISTING LAW:

PSL §§ 66-j and 66-l provide for net metering of various residential
and non-residential solar, wind, farm waste, fuel cell and
micro-hydroelectric generating facilities. PAL §§ 1020g(h), 1020-cc
require the Long Island Power Authority ("LIPA") to implement
programs and policies for net metering consistent with those set
forth in PSL §§ 66-j and 66-l.

PSL § 66-k establishes an allowance credit trading/sales system for
sulfur dioxide (S02) emission allowances. The provision was never
implemented based on federal court rulings that the provision
violated the United States Constitution. PAL § 1854(10-a)(a)
requires the New York State Energy, Research and Development
Authority to administer air pollution mitigation funds and refers to
funds collected pursuant to PSL § 66-k. ECL § 19-0921 (3) requires
the Department of Environmental Conservation to report to the
Legislature any finding that a federal law has been enacted that will
result in at least a fifty percent reduction in sulfur dioxide
emissions as defined under PSL § 66-k.

PRIOR LEGISLATIVE HISTORY:

New proposal.

STATEMENT IN SUPPORT:

Net metering allows customers to generate electricity with
environmentally friendly sources for their own use and credit their
utility bills for any excess electricity delivered to the utilities
for use by the general body of customers. In so doing, energy demand
on the electric system is reduced and supply augmented. Net metering
was first established in New York State for small, residential solar
facilities in 1998 with the enactment of PSL §66-j. Since that time,
PSL §66-j has been amended numerous times, and PSL §66-1 was added in
2004 (and subsequently amended), to include additional technologies
of various sizes, as well as authorizing net metering under for
certain non-residential customers. In 2011 alone PSL §§66-j, §66-1,
and §1020-g(h) (Chapters 35, 530 and 546 of the Laws of 2011) were
amended. As a result, the requirements for the various technologies
and customers are inconsistent and difficult to apply equitably,

The bill would address these concerns by merging PSL §§66-j and 66-1
to establish uniform requirements for the various technologies
eligible for net metering. The bill would make few substantive
changes; rather, it combines the two sections of law to provide
consistent requirements for the various eligible technologies. In
addition, it is unclear whether net metering would apply to leased
facilities; this bill would clarify that customers with eligible

facilities can avail themselves of net metering, regardless of
whether the facilities are leased. It would increase the
opportunities for net metering, thus providing additional distributed
generation and reducing demand on the electric grid. Conforming
changes are also proposed for PAL § 1030-g(h), which will provide net
metering opportunities for LIPA customers that mirror those for
customers served by utilities regulated by the Public Service
Commission.

Finally, the bill would repeal PSL §66-k, and make conforming changes
to PAL § 1854(10-a)(a) and ECL § 19-0921(3), to address the Court
of Appeals for the Second Circuit's decision
(Clean Air Markets Group
v. Pataki,
194 F.Supp,2d 147, affd 338 F.3d 82 (2002)),
finding that PSL §66-k was pre-empted by the federal Clean
Air Act.

BUDGET IMPLICATIONS:

None.

EFFECTIVE DATE:

The bill would be effective immediately upon enactment.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6671

                            I N  S E N A T E

                              March 8, 2012
                               ___________

Introduced  by  Sen.  MAZIARZ -- (at request of the Department of Public
  Service) -- read twice and ordered printed, and  when  printed  to  be
  committed to the Committee on Energy and Telecommunications

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, subdivision 10-a of  section  1854  of
  the  public authorities law, and section 99-g of the state finance 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 RESIDENTIAL SOLAR,  RESIDENTIAL  WIND,
RESIDENTIAL  MICRO-HYDROELECTRIC, FARM WASTE, FARM WIND, NON-RESIDENTIAL
SOLAR, NON-RESIDENTIAL WIND, NON-RESIDENTIAL MICRO-HYDROELECTRIC,  RESI-
DENTIAL MICRO-COMBINED HEAT AND POWER AND FUEL CELL, AND NON-RESIDENTIAL
FUEL  CELL  ELECTRIC  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 ELEC-
TRIC CORPORATION, WHO LOCATES AND USES SOLAR ELECTRIC GENERATING  EQUIP-
MENT AT HIS OR HER RESIDENCE; (II) A RESIDENTIAL CUSTOMER OF AN ELECTRIC
CORPORATION,  WHO LOCATES AND USES WIND ELECTRIC GENERATING EQUIPMENT AT
HIS OR HER RESIDENCE; (III) A RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPO-
RATION, WHO LOCATES AND USES MICRO-HYDROELECTRIC GENERATING EQUIPMENT AT
HIS OR HER RESIDENCE; (IV) A CUSTOMER OF AN ELECTRIC CORPORATION,  WHICH
LOCATES AND USES FARM WASTE ELECTRIC GENERATING EQUIPMENT AT THE CUSTOM-
ER'S  FARM  OPERATION,  AS SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN OF
SECTION THREE HUNDRED ONE OF THE AGRICULTURE  AND  MARKETS  LAW;  (V)  A
CUSTOMER  OF  AN  ELECTRIC CORPORATION, WHICH LOCATES AND USES FARM WIND
ELECTRIC GENERATING EQUIPMENT ON LAND USED IN AGRICULTURAL PRODUCTION AS
DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ONE OF THE AGRICUL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14260-03-2

S. 6671                             2

TURE AND MARKETS LAW AND WHICH IS ALSO THE LOCATION  OF  THE  CUSTOMER'S
PRIMARY RESIDENCE; (VI) A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPO-
RATION,  WHICH  LOCATES  AND USES SOLAR ELECTRIC GENERATING EQUIPMENT AT
ITS  PREMISES;  (VII)  A  NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPO-
RATION, WHICH LOCATES AND USES WIND ELECTRIC GENERATING EQUIPMENT AT ITS
PREMISES; (VIII) A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC  CORPORATION,
WHICH  LOCATES  AND USES MICRO-HYDROELECTRIC GENERATING EQUIPMENT AT ITS
PREMISES; (IX) A RESIDENTIAL CUSTOMER OF AN  ELECTRIC  CORPORATION,  WHO
LOCATES  AND  USES MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT AT
HIS OR HER RESIDENCE; (X) A RESIDENTIAL CUSTOMER OF AN  ELECTRIC  CORPO-
RATION,  WHO  LOCATES  AND USES FUEL CELL GENERATING EQUIPMENT AT HIS OR
HER RESIDENCE; AND (XI) A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPO-
RATION, WHICH LOCATES AND USES FUEL CELL  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
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; AND (B) IN THE CASE OF
A NON-RESIDENTIAL CUSTOMER, HAS A RATED CAPACITY OF NOT  MORE  THAN  TWO
THOUSAND KILOWATTS.
  (IV) "FARM WIND ELECTRIC GENERATING EQUIPMENT" MEANS A WIND GENERATION
SYSTEM  THAT  IS  LOCATED  ON  LAND  USED  IN AGRICULTURAL PRODUCTION AS
DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ONE OF THE AGRICUL-
TURE AND MARKETS LAW AND WHICH IS ALSO THE LOCATION  OF  THE  CUSTOMER'S
PRIMARY  RESIDENCE,  WITH A RATED CAPACITY OF NOT MORE THAN FIVE HUNDRED
KILOWATTS.

S. 6671                             3

  (V) "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.
  (VI) "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.
  (VII) "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.
  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, FARM WIND, 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 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  TRANSFOR-
MERS, OR OTHER EQUIPMENT:
  (I) IN THE CASE OF A CUSTOMER-GENERATOR WHO LOCATES AND USES AT HIS OR
HER  RESIDENCE SOLAR, WIND, MICRO-HYDROELECTRIC, MICRO-COMBINED HEAT AND
POWER OR FUEL CELL ELECTRIC GENERATING EQUIPMENT, OR  A  NON-RESIDENTIAL
CUSTOMER-GENERATOR  WHICH  LOCATES AND USES AT ITS PREMISES SOLAR, WIND,

S. 6671                             4

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 CUSTOMER-GENERATOR WHO LOCATES AND USES FARM
WASTE ELECTRIC GENERATING EQUIPMENT AT THE CUSTOMER'S FARM OPERATION  OR
WHO  LOCATES  AND  USES  FARM WIND ELECTRIC GENERATION EQUIPMENT ON LAND
USED IN AGRICULTURAL PRODUCTION AND WHICH IS ALSO THE  LOCATION  OF  THE
CUSTOMER'S  PRIMARY  RESIDENCE;  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 PARAGRAPH
(D) OF SUBDIVISION FOUR OF THIS SECTION.
  (E) A FARM WASTE CUSTOMER AS DEFINED BY SUBPARAGRAPH (IV) OF PARAGRAPH
(A) OF SUBDIVISION ONE OF THIS SECTION, A FARM WIND CUSTOMER AS  DEFINED
BY SUBPARAGRAPH (V) OF PARAGRAPH (A) OF SUBDIVISION ONE OF THIS SECTION,
OR  A  NON-RESIDENTIAL  CUSTOMER AS DEFINED BY SUBPARAGRAPHS (VI), (VII)
AND (VIII) OF PARAGRAPH (A) OF SUBDIVISION  ONE  OF  THIS  SECTION  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  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-

S. 6671                             5

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 THE CUSTOMER-GENERATOR, AS
DEFINED IN SUBPARAGRAPHS (I), (II), (III), (IV) AND (V) OF PARAGRAPH (A)
OF SUBDIVISION ONE OF THIS SECTION, FOR THE VALUE OF ANY REMAINING CRED-
IT FOR THE EXCESS ELECTRICITY PRODUCED DURING THE YEAR OR OVER THE ANNU-
ALIZED 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
  (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, FARM WASTE,
OR FARM WIND 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 NON-RESIDENTIAL SOLAR, WIND,
MICRO-HYDROELECTRIC OR FUEL CELL CUSTOMER-GENERATOR WITH A RATED CAPACI-
TY OF MORE THAN TWENTY-FIVE KILOWATTS THAT PROVIDES ELECTRICITY  TO  THE
ELECTRIC  CORPORATION THROUGH A LOCAL FEEDER LINE TO COMPLY WITH REASON-
ABLE 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-

S. 6671                             6

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 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-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-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 efficien-
cy  of  energy  end  use, to shift demand from periods of high demand to
periods of low demand and to facilitate  the  development  of  cogenera-
tion[;  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].
  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:

S. 6671                             7

  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. Section ninety-nine-g of the state finance law is REPEALED.
  S 7. This act shall take effect immediately.

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