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

                                 5429--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sens. MAZIARZ, FELDER, PARKER, SAMPSON -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Energy and Telecommunications -- recommitted to the Committee on Ener-
  gy  and Telecommunications in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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REPEALED and a new section 66-j is added to read as follows: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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04241-08-4
              

S. 5429--A                          2

  (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; (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.

S. 5429--A                          3

  (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.
  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
FOURTEEN,  TO  INCREASE  THE  PERCENT LIMITS IF IT DETERMINES THAT ADDI-
TIONAL 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

S. 5429--A                          4

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
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-

S. 5429--A                          5

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 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,

S. 5429--A                          6

(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
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
section  11  of part A of chapter 173 of the laws of 2013, 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. 1. 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.
  2. The authority and service provider shall provide to the state comp-
troller  on  March  thirty-first  and September thirtieth of each year a
report documenting each contract in excess of two hundred fifty thousand
dollars per year entered into with a third party and related to  manage-
ment  and  operation  services  associated with the authority's electric
transmission and distribution system, including the name  of  the  third
party,  the  contract  term and a description of services or goods to be
procured, and post such report on each of their websites. All  contracts
entered  into  between  the  service  provider and third parties are not
subject to the requirements of subdivision one of this section.
  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.