S T A T E O F N E W Y O R K
________________________________________________________________________
4283--B
2009-2010 Regular Sessions
I N S E N A T E
April 21, 2009
___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported favorably from
said committee and committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the public service law and the public authorities law,
in relation to the net energy metering for micro-combined heat and
power generating systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 66-j of the public service law, as added by chapter
399 of the laws of 1997, the section heading, paragraphs (a), (d) and
(e) of subdivision 1, subdivision 2, paragraphs (a), (b) and (c) of
subdivision 3, paragraphs (c) and (d) of subdivision 4 as amended and
subdivision 5-a as added by chapter 452 of the laws of 2008, subdivi-
sions 1, 3, 4 and 5 as amended by chapter 515 of the laws of 2002, and
paragraph (b) and the opening paragraph of paragraph (e) of subdivision
1 as amended by chapter 480 of the laws of 2008, is amended to read as
follows:
S 66-j. Net energy metering for residential solar, farm waste [or],
non-residential solar electric generating systems, MICRO-COMBINED HEAT
AND POWER GENERATING EQUIPMENT, OR 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 owns or operates solar electric generating equip-
ment located and used at his or her residence; (ii) a customer of an
electric corporation, who owns or operates farm waste electric generat-
ing equipment located and used at his or her "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 owns or operates solar electric gener-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11273-05-9
S. 4283--B 2
ating equipment located and used at its premises; (IV) A RESIDENTIAL
CUSTOMER OF AN ELECTRIC CORPORATION WHO OWNS, LEASES OR OPERATES MICRO-
COMBINED HEAT AND POWER GENERATING EQUIPMENT LOCATED ON THE CUSTOMER'S
PREMISES; AND (V) A RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION WHO
OWNS, LEASES OR OPERATES FUEL CELL GENERATING EQUIPMENT LOCATED ON THE
CUSTOMER'S 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.
(d) "Solar electric generating equipment" means a photovoltaic system
(i) (A) in the case of a residential customer, with a rated capacity of
not more than twenty-five kilowatts; and (B) in the case of a non-resi-
dential customer, with a rated capacity of not more than the lesser of
two thousand kilowatts or such customer's peak load as measured over the
prior twelve month period, or in the case that such twelve month period
of measurement is not available, then as determined by the commission
based on its analysis of comparable facilities; and (ii) that is manu-
factured, installed, and operated in accordance with applicable govern-
ment 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.
(e) "Farm waste electric generating equipment" means equipment that
generates electric energy from biogas produced by the anaerobic
digestion of agricultural waste, such as livestock manure, farming
wastes and food processing wastes with a rated capacity of not more than
five hundred kilowatts, that is:
[i.] (I) manufactured, installed, and operated in accordance with
applicable government and industry standards;
[ii.] (II) connected to the electric system and operated in conjunc-
tion with an electric corporation's transmission and distribution facil-
ities;
[iii.] (III) operated in compliance with any standards and require-
ments established under this section;
[iv.] (IV) 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, crop residues, and food processing waste;
and
[v.] (V) fueled by biogas generated by anaerobic digestion with at
least fifty percent by weight of its feedstock being livestock manure
materials on an annual basis.
(F) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS AN
INTEGRATED, COGENERATING BUILDING HEATING AND ELECTRICAL POWER GENER-
ATION SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE, FUEL
CELL, OR OTHER TECHNOLOGY, WITH A RATED CAPACITY OF AT LEAST ONE KILO-
WATT AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT
THAT AT FULL LOAD HAS A DESIGN TOTAL FUEL USE EFFICIENCY 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 SUPPLE-
MENTAL OR PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED,
S. 4283--B 3
INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND
INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
ATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND
DISTRIBUTION FACILITIES.
(G) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL
WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TEN KILOWATTS THAT IS
MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE
GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC
SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPORATION'S TRANS-
MISSION AND DISTRIBUTION FACILITIES, AND THAT IS OPERATED IN COMPLIANCE
WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
2. Interconnection and net energy metering. An electric corporation
shall provide for the interconnection of solar and farm waste electric
generating equipment, MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
AND FUEL CELL ELECTRIC GENERATING EQUIPMENT owned or operated 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 corporation's net energy metering sche-
dule and complies with standards and requirements established under this
section.
3. Conditions of service. (a) (i) On or before three months after the
effective date of this section, each electric corporation shall develop
a model contract and file a schedule that establishes consistent and
reasonable rates, terms and conditions for net energy metering to
customer-generators, according to the requirements of this section. The
commission shall render a decision within three months from the date on
which the schedule is filed.
(ii) On or before three months after the effective date of this
subparagraph, each electric corporation shall develop a model contract
and file a schedule that establishes consistent and reasonable rates,
terms and conditions for net energy metering to non-residential customer
generators, according to the requirements of this section. The commis-
sion shall render a decision within three months of the date on which
the schedule is filed.
(iii) Each electric corporation shall make such contract and schedule
available to customer-generators on a first come, first served basis,
until the total rated generating capacity for solar and farm waste elec-
tric generating equipment, MICRO-COMBINED HEAT AND POWER GENERATING
EQUIPMENT AND FUEL CELL ELECTRIC GENERATING EQUIPMENT owned, LEASED or
operated by customer-generators in the corporation's service area is
equivalent to one 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 owns or operates solar
electric generating equipment, MICRO-COMBINED HEAT AND POWER GENERATING
S. 4283--B 4
EQUIPMENT OR FUEL CELL ELECTRIC GENERATING EQUIPMENT located and used at
his or her residence[;], up to a maximum amount of three hundred fifty
dollars[.];
(ii) In the case of a customer-generator who owns or operates farm
waste electric generating equipment located and used at his or her "farm
operation," up to a total amount of five thousand dollars per "farm
operation"[.]; AND
(iii) In the case of a non-residential customer-generator who owns or
operates solar electric generating equipment located and used at its
premises, such cost shall be as determined by the department pursuant to
standards established thereby.
(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.
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 the customer-generator, as
defined in subparagraph (i) or (ii) of paragraph (a) of subdivision one
of this section, for the value of any remaining credit for the excess
electricity 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) On or before three months after the effective
date of this section, each electric corporation shall establish stand-
ards that are necessary for net energy metering and the interconnection
of residential solar or farm waste electric generating equipment,
S. 4283--B 5
MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT AND FUEL CELL ELEC-
TRIC GENERATING EQUIPMENT 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 residential solar
[and], farm waste, MICRO-COMBINED HEAT AND POWER AND FUEL CELL ELECTRIC
generating system 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 the residential
solar and farm waste electric generating 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.
(i) In the case of a customer-generator who owns or operates solar
electric generating equipment located and used at his or her residence;
an electric corporation may not require a customer-generator to comply
with additional safety or performance standards, perform or pay for
additional tests, or purchase additional liability insurance provided
that the residential solar or farm waste electric generating equipment,
MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT OR FUEL CELL ELECTRIC
GENERATING EQUIPMENT meets the safety standards established pursuant to
this paragraph.
(ii) In the case of a customer-generator who owns or operates farm
waste electric generating equipment located and used at his or her "farm
operation," an electric corporation may not require a customer-generator
to comply with additional safety or performance standards, perform or
pay for additional tests, or purchase additional liability insurance
provided that:
1. the electric generating equipment meets the safety standards estab-
lished pursuant to this paragraph; and
2. the total rated generating capacity (measured in kW) of farm waste
electric generating equipment that provides electricity to the electric
corporation through the same local feeder line, does not exceed twenty
percent of the rated capacity of that local feeder line.
(iii) In the event that the total rated generating capacity of farm
waste electric generating equipment that provides electricity to the
electric corporation through the same local feeder line exceeds twenty
percent of the rated capacity of the local feeder line, the electric
corporation may require the customer-generator to comply with reasonable
measures to ensure safety of that local feeder line.
5-a. Safety standards; non-residential solar electric generating
equipment. (a) On or before three months after the effective date of
this subdivision, each electric corporation shall establish standards
that are necessary for net energy metering and the interconnection of
non-residential solar electric generating equipment 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 solar generating
system 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-generator's
S. 4283--B 6
premises and externally accessible for the purpose of isolating the
solar electric generating equipment.
(b) In the event that the total rated generating capacity of solar
electric generating equipment that provides electricity to the electric
corporation through the same local feeder line exceeds twenty percent of
the rated capacity of the local feeder line, the electric corporation
may require the customer-generator to comply with reasonable measures to
ensure safety of the local feeder line.
(c) Unless otherwise determined to be necessary by the commission, an
electric corporation may not require a customer-generator to comply with
additional safety or performance standards, perform or pay for addi-
tional tests, or purchase additional liability insurance provided that
the solar electric generating equipment meets the safety standards
established pursuant to this subdivision.
(d) 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.
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 452 of the laws of 2008, 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, [and] (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, AND (E) FUEL CELL ELECTRIC
GENERATING EQUIPMENT OWNED, LEASED OR OPERATED BY RESIDENTIAL CUSTOMERS,
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 development of cogeneration; 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. This act shall take effect immediately.
