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

                                  8443

                            I N  S E N A T E

                              July 14, 2010
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the public service law and the public  authorities  law,
  in relation to net energy metering with micro-hydroelectric generating
  equipment

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

  Section 1. Subdivision 1 of section 66-j of the public service law  is
amended by adding a new paragraph (h) to read as follows:
  (H)  "MICRO-HYDROELECTRIC  GENERATING EQUIPMENT" MEANS A HYDROELECTRIC
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-RESIDENTIAL CUSTOMER, WITH A RATED CAPACITY OF NOT MORE  THAN  TWO
THOUSAND  KILOWATTS; AND (II) THAT IS MANUFACTURED, INSTALLED, AND OPER-
ATED 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.
  S  2.  Subdivision  2  of  section  66-j of the public service law, as
amended by chapter 355 of the laws  of  2009,  is  amended  to  read  as
follows:
  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 AND MICRO-HYDROELECTRIC
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 schedule and complies with standards
and requirements established under this section.
  S 3. Subdivision 3 of section 66-j  of  the  public  service  law,  as
amended  by chapter 355 of the laws of 2009, subparagraphs (i) and (iii)
of paragraph (c) as amended by chapter 7 of the laws of 2010, is amended
to read as follows:
  3. Conditions of service. (a) (i) On or before three months after  the
effective  date of this section, each electric corporation shall develop
              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD17554-01-0

S. 8443                             2

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  AND  MICRO-HY-
DROELECTRIC  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
equipment [or], fuel cell electric generating equipment OR MICRO-HYDROE-
LECTRIC GENERATING EQUIPMENT located and used at his or  her  residence,
or a non-residential customer-generator who owns or operates solar elec-
tric  generating  equipment with a rated capacity of not more than twen-
ty-five kilowatts, 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  OR  MICRO-HYDROELECTRIC
GENERATING  EQUIPMENT  with  a  rated  capacity of more than twenty-five
kilowatts located and used at its premises, such cost shall be as deter-
mined by the electric corporation 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.

S. 8443                             3

  S  4.  Subdivision  5  of  section  66-j of the public service law, as
amended by chapter 355 of the laws  of  2009,  is  amended  to  read  as
follows:
  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,
micro-combined heat and power generating equipment and fuel  cell  elec-
tric  generating  equipment AND MICRO-HYDROELECTRIC 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,  farm waste, micro-combined heat and power and fuel cell electric
generating system AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT 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 AND MICRO-HYDROELEC-
TRIC 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 elec-
tric  generating  equipment  OR MICRO-HYDROELECTRIC 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.
  S 5. Subdivision 5-a of section 66-j of the  public  service  law,  as
amended  by  chapter  355  of  the  laws  of 2009, is amended to read as
follows:

S. 8443                             4

  5-a.  Safety  standards;  non-residential  solar  electric  generating
equipment  AND  MICRO-HYDROELECTRIC  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 OR MICRO-HYDROELECTRIC  GENERATING  EQUIP-
MENT 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 OR MICRO-HYDROELECTRIC  GENERATING  EQUIPMENT  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
premises  and  externally  accessible  for  the purpose of isolating the
solar electric generating equipment  OR  MICRO-HYDROELECTRIC  GENERATING
EQUIPMENT.
  (b)  In  the  event  that the total rated generating capacity of solar
electric generating equipment OR MICRO-HYDROELECTRIC  GENERATING  EQUIP-
MENT  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 custom-
er-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 OR MICRO-HYDROELECTRIC  GENERAT-
ING  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.
  S  6. Subdivision (h) of section 1020-g of the public authorities law,
as amended by chapter 355 of the laws of 2009, 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, [and] (E) fuel cell electric generat-
ing  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 cogeneration;
and (ii) wind electric generating equipment owned or operated by custom-
er-generators  and  for  net  energy  metering  consistent  with section
sixty-six-l of the public service law.
  S 7. This act shall take effect immediately.