senate Bill S7727

2013-2014 Legislative Session

Relates to shared renewable facilities

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Archive: Last Bill Status - In Committee


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

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Jun 03, 2014 referred to finance

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S7727 - Bill Details

See Assembly Version of this Bill:
A9931
Current Committee:
Law Section:
Executive Law
Laws Affected:
Amd §94-a, Exec L; amd §§2 & 5, add §66-n, Pub Serv L; amd §1020-g, Pub Auth L

S7727 - Bill Texts

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Relates to shared renewable energy facilities.

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BILL NUMBER:S7727

TITLE OF BILL: An act to amend the executive law, the public service
law and the public authorities law, in relation to shared renewable
facilities

PURPOSE: Amends the Executive Law, Public Service Law (PSL) and Public
Authorities Law (PAL) to allow for the interconnection and operation
of shared solar and wind facilities,

SUMMARY OF PROVISIONS: Part One amends the Executive Law to authorize
the Utility Intervention Unit within the Department of State to
initiate, intervene or participate in proceedings before the Public
Service Commission (PSC) and Department of Public Service (DPS)
relating to section 66-n of the Public Service Law (Shared Renewable
Energy Facilities).

Section Two creates a new § 2-e of the PSL to define "shared renewable
energy facility".

Section Three amends § 5 of the PSL to authorize the PSC to determine
the compatibility, interconnection and operation of shared renewable
energy facilities.

Section Four creates § 66-n of the PSL and provides definitions
including "subscriber", "power subscriber agreement," "subscription
roster," "subscriber company," "subscription," and "bill credit."

The shared renewable energy facility compatibility map would be
developed on a county-by county basis and account for the potential
need for additional electric generation, electric congestion on the
high voltage transmission network and the potential for reduction of
carbon dioxide, sulfur dioxide, nitrogen oxide and particulate matter
2.5.

Interconnection and operations standards established under the order
would provide that a shared renewable energy facility would operate in
the same service territory of the electric corporation and county or
counties in which its subscribers are customers and within the same
load zone as determined by the location based marginal price as of the
date of the initial request by a subscriber company to interconnect a
shared renewable energy facility. Additionally, subscriber companies
would only be authorized to sell to subscribers and not sell or
otherwise market the output of shared renewable energy facilities to
third parties, electric corporations, cooperatives or bulk system
operators.

Subscriber protection standards established pursuant to the order
would establish clear and consistent charges, guarantee refunds for
subscribers for any portion of the a customer's share that does not
produce electricity, limit the term of a subscriber agreement to five
years for residential customers and ten years for non-residential
customers.

The legislation would require electric corporations to interconnect
shared renewable energy facilities located in a compatibility and
accommodation zone on a first come first served basis until the total


rated generating capacity attributable to such facilities is
equivalent to one half of one percent of such company's electric
demand for 2005. The bill would provide that no greater than 20
percent of shared renewable energy facilities could be constructed in
Potential Environmental Justice Areas as determined by the Department
of Environmental Conservation as depicted on May 5, 2014.

The legislation would direct electric corporations to credit customers
who are subscribers for their pro-rata portion of electricity produced
by a shared renewable energy facility at the same per kilowatt hour
rate applicable to customers in the same service class who do not
subscribe to a shared renewable facility.

The legislation would establish safety equipment and operations
standards applicable to shared renewable energy facilities.

Section Four would amend § 1020-g of the PAL to direct the Long Island
Power Authority (LIPA) to provide for the interconnection of shared
renewable facilities consistent with the provisions of § 66-n of the
PSL.

JUSTIFICATION: Currently, the vast majority of electricity customers,
especially those in New York City and other urban communities, are
unable to install renewable energy systems on their property due to
various impediments, such as high-rise apartments that have one small
roof for many inhabitants.

The shared renewable energy program created by this bill will provide
the opportunity for electric customers, especially multi-dwellers, to
invest in shared renewable energy facilities and see tangible economic
benefits in their utility bill. Specifically, customers of an electric
corporation would be able to receive credit against their usage for
electricity produced by shared renewable energy facilities to which
they subscribe.

Under this bill, the Public Service Commission would determine which
areas of the electric grid would benefit from increased distributed
generation and permit the interconnection of shared renewable energy
facilities that meet standards pursuant to this act. This will ensure
that projects are being located in areas that provide the most
benefits to the state as a whole.

Additionally, a shared renewable energy program will unlock a new
market and unleash massive new private investment in New York State.
This bill will provide significant financial, health, environmental
and workforce benefits to the state, and promote energy independence,
security and grid resiliency.

PRIOR HISTORY: This is a new bill.

FISCAL IMPLICATIONS: Nominal costs to the Department of Public Service
in instituting a proceeding to established shared renewable energy
facility interconnection standards.

EFFECTIVE DATE: Immediately.


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

                                  7727

                            I N  S E N A T E

                              June 3, 2014
                               ___________

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

AN ACT to amend the executive law, the public service law and the public
  authorities law, in relation to shared renewable facilities

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

  Section  1.  Subparagraph  (i)  of  paragraph  (b) of subdivision 4 of
section 94-a of the executive law, as amended by section 12 of part A of
chapter 173 of the laws of 2013, is amended to read as follows:
  (i) on behalf of the secretary, initiate, intervene in, or participate
in any proceedings before the public service commission or  the  depart-
ment  of  public  service, to the extent authorized by sections three-b,
twenty-four-a, SIXTY-SIX-N, seventy-one, eighty-four  or  ninety-six  of
the  public  service law or any other applicable provision of law, where
he or she deems such initiation, intervention  or  participation  to  be
necessary or appropriate;
  S  2.  Section  2 of the public service law is amended by adding a new
subdivision 2-e to read as follows:
  2-E. THE TERM "SHARED RENEWABLE ENERGY FACILITY"  WHEN  USED  IN  THIS
CHAPTER  MEANS  SOLAR  ELECTRIC  GENERATING  EQUIPMENT  AS  SUCH TERM IS
DEFINED IN SECTION SIXTY-SIX-J OF THIS CHAPTER; AND WIND ELECTRIC GENER-
ATING EQUIPMENT AS SUCH TERM IS DEFINED IN SECTION SIXTY-SIX-L  OF  THIS
CHAPTER.  SUCH  FACILITIES SHALL: (A) NOT EXCEED A NAMEPLATE CAPACITY OF
GREATER THAN TWO MEGAWATTS, PROVIDED THAT FACILITIES LOCATED IN A POTEN-
TIAL ENVIRONMENTAL JUSTICE AREA, AS  DETERMINED  BY  THE  DEPARTMENT  OF
ENVIRONMENTAL CONSERVATION AS SUCH AREAS WERE DEPICTED ON MAY FIFTH, TWO
THOUSAND FOURTEEN, SHALL NOT EXCEED A NAMEPLATE CAPACITY OF GREATER THAN
ONE  MEGAWATT;  (B)  BE LOCATED, CONSTRUCTED AND OPERATED, IN ACCORDANCE
WITH ANY APPLICABLE LOCAL LAW, ORDINANCE OR REGULATION; (C)  BE  LOCATED
IN  A  SHARED  RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION
ZONE AS PROVIDED FOR IN SUBDIVISION FOUR OF SECTION SIXTY-SIX-N OF  THIS
CHAPTER;  (D) BE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH
APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, CONNECTED TO THE  ELECTRIC
SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANS-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15366-01-4

S. 7727                             2

MISSION AND DISTRIBUTION FACILITIES; AND (E) SHALL HAVE NO LESS THAN TEN
SUBSCRIBERS.
  S  3.  Subdivision 1 of section 5 of the public service law is amended
by adding a new paragraph i to read as follows:
  I. TO THE DETERMINATION OF COMPATIBILITY, INTERCONNECTION  AND  OPERA-
TION  OF  SHARED  RENEWABLE ENERGY FACILITIES AS SUCH TERM IS DEFINED IN
PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIXTY-SIX-N OF THIS CHAPTER.
  S 4. The public service law is amended by adding a new section 66-n to
read as follows:
  S 66-N. SHARED  RENEWABLE  ENERGY  FACILITIES.  1.  AS  USED  IN  THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "SUBSCRIBER" MEANS A RESIDENTIAL OR NON-RESIDENTIAL CUSTOMER OF AN
ELECTRIC CORPORATION WHO HAS: (I) ENTERED INTO A POWER SUBSCRIBER AGREE-
MENT  WITH  A SUBSCRIBER COMPANY; AND (II) IDENTIFIED ONE OR MORE METERS
TO WHICH THE PRO-RATA SHARE OF THE ELECTRICAL OUTPUT OF A FACILITY SHALL
BE ATTRIBUTED PURSUANT TO HIS OR HER POWER  SUBSCRIBER  AGREEMENT.  SUCH
METERS  SHALL  BE  WITHIN EITHER THE SAME COUNTY AS THE SHARED RENEWABLE
ENERGY FACILITY TO WHICH A SUBSCRIBER HAS ENTERED INTO A POWER SUBSCRIB-
ER AGREEMENT, EXCEPT THAT IN THE CASE OF A SUBSCRIBER WHOSE  METERS  ARE
LOCATED  IN  A  COUNTY OF TWENTY THOUSAND OR LESS, ACCORDING TO THE MOST
RECENT CENSUS, THE SUBSCRIBER MAY ENTER INTO A POWER  SUBSCRIBER  AGREE-
MENT WITH A SUBSCRIBER COMPANY WHOSE SHARED RENEWABLE ENERGY FACILITY IS
LOCATED IN AN ADJACENT COUNTY OF TWENTY THOUSAND OR LESS WITHIN THE SAME
SERVICE  TERRITORY  OF  THE ELECTRIC CORPORATION OF WHICH HE OR SHE IS A
CUSTOMER, AND IS LOCATED WITHIN THE SAME LOAD ZONE AS DETERMINED BY  THE
LOCATION BASED MARGINAL PRICE AS OF THE DATE OF THE INITIAL REQUEST BY A
SUBSCRIBER COMPANY TO INTERCONNECT A SHARED RENEWABLE ENERGY FACILITY.
  (B)  "POWER  SUBSCRIBER  AGREEMENT" OR "SUBSCRIBER AGREEMENT" MEANS AN
AGREEMENT BETWEEN A SUBSCRIBER AND A SUBSCRIBER COMPANY THAT MEETS STAN-
DARDS PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION. SUCH
AGREEMENT SHALL: (I) INCLUDE THE NAME, ADDRESS AND ELECTRIC  CORPORATION
ACCOUNT NUMBER TO WHICH THE SUBSCRIPTION SHALL BE ATTRIBUTED; (II) ENTI-
TLE  A SUBSCRIBER TO A PRO-RATA SHARE OF THE ACTUAL ELECTRICAL OUTPUT OF
A SHARED RENEWABLE ENERGY FACILITY; AND (III) PROVIDE THAT  A  SUBSCRIB-
ER'S  PRO-RATA  SHARE  WILL  BE  REFLECTED  AS A BILL CREDIT AGAINST THE
SUBSCRIBER'S MONTHLY ELECTRIC USAGE AS METERED BY HIS  OR  HER  ELECTRIC
CORPORATION  AND  BILLED  BY SUCH ELECTRIC CORPORATION ON A PER KILOWATT
HOUR BASIS.
  (C) "SUBSCRIPTION ROSTER" MEANS THE COMPILATION  OF  INFORMATION  FROM
POWER  SUBSCRIBER  AGREEMENTS  FOR  A PARTICULAR SHARED RENEWABLE ENERGY
FACILITY WHICH IS COLLECTED BY THE SUBSCRIBER COMPANY OWNING SUCH FACIL-
ITY FOR THE PURPOSES OF DIRECTING AN ELECTRIC CORPORATION TO APPLY  BILL
CREDITS  AGAINST  SUBSCRIBERS'  MONTHLY  ELECTRIC  USAGE  AS METERED AND
RECOVERED BY SUCH ELECTRIC CORPORATION THROUGH A MONTHLY BILL.
  (D) "SUBSCRIBER COMPANY" MEANS A GENERAL PARTNERSHIP, LIMITED PARTNER-
SHIP, LIMITED LIABILITY COMPANY, COOPERATIVE, S-CORPORATION,  C-CORPORA-
TION OR NOT-FOR-PROFIT CORPORATION WHOSE PURPOSE IS TO OWN AND OPERATE A
SHARED RENEWABLE ENERGY FACILITY.
  (E)   "SUBSCRIPTION"  MEANS  THE  RIGHTS  AND  RESPONSIBILITIES  OF  A
SUBSCRIBER TO A PRO-RATA PORTION OF THE ACTUAL ELECTRICAL  OUTPUT  OF  A
SHARED  RENEWABLE  ENERGY  FACILITY, AS SET FORTH IN A SUBSCRIBER AGREE-
MENT.  A SUBSCRIPTION SHALL: (I) AT A MINIMUM, REPRESENT  AT  LEAST  ONE
KILOWATT  OF  A  SHARED RENEWABLE ENERGY FACILITY'S GENERATING CAPACITY;
AND (II) NOT EXCEED ONE HUNDRED PERCENT  OF  A  SUBSCRIBER'S  ELECTRICAL
CONSUMPTION  AS  MEASURED IN KILOWATT HOURS FROM THE TWELVE-MONTH PERIOD
IMMEDIATELY PRECEDING THE ESTABLISHMENT OF A SUBSCRIBER AGREEMENT.

S. 7727                             3

  (F) "BILL CREDIT" MEANS A CREDIT MEASURED ON A PER KILOWATT HOUR BASIS
AND APPLIED AGAINST A SUBSCRIBER'S NEXT MONTHLY BILL FOR SERVICE  ISSUED
BY  HIS OR HER ELECTRIC CORPORATION BASED UPON THE PRO-RATA SHARE OF THE
ELECTRICAL OUTPUT OF THE SHARED RENEWABLE ENERGY FACILITY TO  WHICH  THE
CUSTOMER IS ENTITLED PURSUANT TO A SUBSCRIBER AGREEMENT.
  2.  NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND FIFTEEN, THE COMMIS-
SION SHALL COMMENCE A PROCEEDING TO:  (A)  DEVELOP  A  STATEWIDE  SHARED
RENEWABLE  ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE MAP; (B)
ESTABLISH CRITERIA FOR THE COMPATIBLE INTERCONNECTION AND  OPERATION  OF
SHARED  RENEWABLE  ENERGY FACILITIES AND SUBSCRIBER PROTECTIONS; AND (C)
DEVELOP SUBSCRIBER PROTECTION STANDARDS.
  3. IN DEVELOPING  THE  ORDER  PURSUANT  TO  SUBDIVISION  TWO  OF  THIS
SECTION, THE COMMISSION SHALL CONSULT WITH THE STATE DEPARTMENT OF ENVI-
RONMENTAL  CONSERVATION  AND  THE  BULK SYSTEM OPERATOR SERVING NEW YORK
STATE. THE  COMMISSION  SHALL  ALSO  SOLICIT  PARTICIPATION  AND  PUBLIC
COMMENT FROM STAKEHOLDER ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO:
  (A) ORGANIZATIONS ADVOCATING FOR ENVIRONMENTAL CONCERNS;
  (B) ORGANIZATIONS REPRESENTING RENEWABLE ENERGY INDUSTRIES;
  (C) ELECTRIC CORPORATIONS; AND
  (D) THE LONG ISLAND POWER AUTHORITY.
  4.  THE  COMMISSION  MAP  PURSUANT  TO SUBDIVISION TWO OF THIS SECTION
SHALL BE DEVELOPED ON A COUNTY-BY-COUNTY  BASIS.  THE  COMMISSION  SHALL
DETERMINE  WHICH  COUNTIES,  IF  ANY,  WOULD  BENEFIT FROM THE INTERCON-
NECTION, OPERATION AND ELECTRICAL  OUTPUT  OF  SHARED  RENEWABLE  ENERGY
FACILITIES,  TAKING  INTO  CONSIDERATION FACTORS AFFECTING THE PRICE AND
DELIVERABILITY OF ELECTRICITY  IN  EACH  COUNTY.  THE  COMMISSION  SHALL
PUBLISH SUCH MAP AND ACCOMMODATE THE INTERCONNECTION OF SHARED RENEWABLE
ENERGY  FACILITIES  WHICH  MEET THE REQUIREMENTS OF THIS SECTION AND ANY
RULES AND REGULATIONS OF THE COMMISSION PERTAINING THERETO NO LATER THAN
JULY THIRTY-FIRST, TWO THOUSAND SIXTEEN. SUCH MAP SHALL  BE  UPDATED  NO
LATER  THAN JULY THIRTY-FIRST OF EACH SUCCEEDING YEAR. IN DEVELOPING THE
MAP PURSUANT TO THIS SUBDIVISION, THE COMMISSION  SHALL  CONSIDER  ON  A
COUNTY-BY-COUNTY BASIS:
  (A) THE POTENTIAL NEED FOR ADDITIONAL ELECTRIC GENERATION AND/OR TRAN-
SMISSION WITHIN THE PRECEDING TEN-YEAR PERIOD;
  (B) ELECTRIC CONGESTION ON THE HIGH VOLTAGE TRANSMISSION NETWORK WHICH
HAS  CREATED  OR IS PROJECTED TO CREATE WITHIN TEN YEARS, A SYSTEM RELI-
ABILITY PROBLEM, OR, AS DETERMINED BY THE COMMISSION, HAS CONTRIBUTED TO
A SIGNIFICANT INCREASE IN THE WHOLESALE COST OF ELECTRICITY; AND
  (C) THE POTENTIAL FOR REDUCTION IN OVERALL EMISSIONS OF  CARBON  DIOX-
IDE,  SULFUR DIOXIDE, NITROGEN OXIDE AND PARTICULATE MATTER 2.5 (PM 2.5)
THAT WOULD BE ATTRIBUTABLE TO THE OPERATION OF SHARED  RENEWABLE  ENERGY
FACILITIES.
  5. THE ORDER ESTABLISHED BY THE COMMISSION PURSUANT TO SUBDIVISION TWO
OF  THIS  SECTION  SHALL  INCLUDE  STANDARDS FOR THE INTERCONNECTION AND
OPERATION OF SHARED  RENEWABLE  ENERGY  FACILITIES,  INCLUDING  BUT  NOT
LIMITED TO REQUIREMENTS THAT:
  (A)  SHARED  RENEWABLE  ENERGY  FACILITIES SHALL BE DESIGNED TO ENSURE
SAFE AND ADEQUATE OPERATION AND THAT ANY COSTS ASSOCIATED WITH EQUIPMENT
AND TECHNOLOGY THE COMMISSION DEEMS NECESSARY FOR SUCH PURPOSE SHALL  BE
THE RESPONSIBILITY OF A SUBSCRIBER COMPANY;
  (B)  SHARED RENEWABLE ENERGY FACILITIES ARE DESIGNED TO OPERATE (I) IN
THE SAME SERVICE TERRITORY OF THE ELECTRIC  CORPORATION  AND  COUNTY  OR
COUNTIES  AS  AUTHORIZED  BY THE COMMISSION TO WHICH ITS SUBSCRIBERS ARE
METERED FOR ELECTRICAL USAGE; AND (II) ARE LOCATED WITHIN THE SAME  LOAD
ZONE  AS  DETERMINED BY THE LOCATION BASED MARGINAL PRICE AS OF THE DATE

S. 7727                             4

OF THE INITIAL REQUEST BY A SUBSCRIBER COMPANY TO INTERCONNECT A  SHARED
RENEWABLE ENERGY FACILITY;
  (C)  A  SHARED  RENEWABLE ENERGY FACILITY'S ELECTRICAL OUTPUT WILL NOT
RESULT IN ELECTRICAL CONGESTION OR CONTRIBUTE SIGNIFICANTLY TO  ELECTRIC
CONGESTION WITHIN THE SERVICE TERRITORY OF AN ELECTRIC CORPORATION;
  (D)  A SUBSCRIBER COMPANY SHALL ONLY SELL TO SUBSCRIBERS AND SHALL NOT
SELL OR OTHERWISE MARKET TO A THIRD-PARTY, ELECTRIC CORPORATION,  PUBLIC
POWER AUTHORITY, RURAL ELECTRIC CO-OPERATIVE, OR WHOLESALE BULK ELECTRIC
SYSTEM  OPERATOR,  WHETHER  OR  NOT  SUCH WHOLESALE BULK ELECTRIC SYSTEM
OPERATOR IS LOCATED IN NEW YORK; AND
  (E) AN ELECTRIC CORPORATION SHALL NOT BE REQUIRED TO  PURCHASE  ENERGY
PRODUCED  BY  A  SHARED  RENEWABLE  ENERGY  FACILITY BUT WHICH IS UNSUB-
SCRIBED.
  6. THE ORDER ESTABLISHED BY THE COMMISSION  SHALL  INCLUDE  SUBSCRIBER
PROTECTION  STANDARDS  TO BE INCLUDED IN THE POWER SUBSCRIBER AGREEMENT,
WHICH SHALL:
  (A) (I) ESTABLISH CLEAR AND CONSISTENT CHARGES BASED ON A SUBSCRIBER'S
PRO-RATA SHARE OF A SHARED RENEWABLE ENERGY FACILITY'S OUTPUT  EXPRESSED
AS MONTHLY CHARGES BASED ON PER KILOWATT HOUR PRODUCTION; (II) GUARANTEE
REFUNDS FROM THE SUBSCRIBER COMPANY TO THE SUBSCRIBER FOR ANY PORTION OF
SUCH  SHARE THAT SUCH SHARED RENEWABLE ENERGY FACILITY DOES NOT ACTUALLY
PRODUCE; AND (III) GUARANTEE REFUNDS FROM A SUBSCRIBER COMPANY  FOR  ANY
PORTION  OF  A  SUBSCRIBER'S SHARE THAT WAS NOT ACTUALLY CONSUMED BY THE
SUBSCRIBER;
  (B) LIMIT THE TERM OF A POWER SUBSCRIBER AGREEMENT: (I) FOR  SUBSCRIB-
ERS  WHO  ARE  RESIDENTIAL  CUSTOMERS  OF AN ELECTRIC CORPORATION, TO NO
GREATER THAN FIVE YEARS; AND (II) FOR SUBSCRIBERS WHO  ARE  NON-RESIDEN-
TIAL CUSTOMERS OF AN ELECTRIC CORPORATION, TO NO GREATER THAN TEN YEARS,
PROVIDED  THAT  A  SUBSCRIBER MAY RENEW HIS OR HER SUBSCRIPTION UPON ITS
EXPIRATION FOR AN ADDITIONAL TERM;
  (C) REQUIRE THAT, IN THE CASE OF A SHARED  RENEWABLE  ENERGY  FACILITY
WHICH HAS NOT BEEN INTERCONNECTED UPON THE SIGNING OF A POWER SUBSCRIBER
AGREEMENT,   THE   SUBSCRIBER  COMPANY  SHALL  IMMEDIATELY  NOTIFY  EACH
SUBSCRIBER UPON THE INTERCONNECTION  OF  SUCH  SHARED  RENEWABLE  ENERGY
FACILITY  THAT  HE  OR  SHE  HAS FORTY-FIVE DAYS UPON THE RECEIPT OF THE
NOTICE REQUIRED  PURSUANT  TO  THIS  PARAGRAPH  TO  CANCEL  HIS  OR  HER
SUBSCRIPTION  WITH  NO  CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR
HER SUBSCRIBER COMPANY, PROVIDED  THAT  IF  A  SHARED  RENEWABLE  ENERGY
FACILITY  IS  NOT  INTERCONNECTED WITHIN ONE YEAR OF THE COMPLETION OF A
POWER SUBSCRIBER AGREEMENT, THE SUBSCRIBER AGREEMENT WILL  BE  NULL  AND
VOID;
  (D)  REQUIRE  THAT,  IN THE CASE OF A SHARED RENEWABLE ENERGY FACILITY
WHICH WAS INTERCONNECTED PRIOR TO THE  SIGNING  OF  A  POWER  SUBSCRIBER
AGREEMENT, THE SUBSCRIBER SHALL HAVE FORTY-FIVE DAYS UPON THE SIGNING OF
A  POWER  SUBSCRIBER AGREEMENT TO CANCEL HIS OR HER SUBSCRIPTION WITH NO
CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR HER SUBSCRIBER COMPANY;
  (E) PROHIBIT A SUBSCRIBER COMPANY  FROM  TRANSFERRING  A  SUBSCRIPTION
FROM  ONE  SHARED  RENEWABLE  ENERGY  FACILITY TO ANOTHER, REGARDLESS OF
WHETHER THE SUBSCRIBER FACILITY TO WHICH A SUBSCRIBER AGREEMENT WOULD BE
TRANSFERRED IS  OWNED  OR  OPERATED  BY  THE  SAME  COMPANY,  WITHOUT  A
SUBSCRIBER'S CONSENT;
  (F)  ESTABLISH  THAT  ANY  COMPLAINTS BY A SUBSCRIBER ABOUT HIS OR HER
SUBSCRIPTION SHALL BE NOT BE THE RESPONSIBILITY OF THE  ELECTRIC  CORPO-
RATION  BUT INSTEAD SHALL BE THE RESPONSIBILITY OF THE SUBSCRIBER COMPA-
NY;

S. 7727                             5

  (G) REQUIRE A SUBSCRIBER COMPANY SEEKING TO INTERCONNECT  PURSUANT  TO
THIS SECTION TO ESTABLISH AND MAINTAIN A COMPLAINT HANDLING PROCESS;
  (H)   PROHIBIT   A   SUBSCRIBER  COMPANY  FROM  CHARGING  DIFFERENTIAL
SUBSCRIPTION FEES TO SUBSCRIBERS WHO ARE CUSTOMERS OF THE SAME CLASS  OF
ELECTRIC  SERVICE  WHOSE  PRO-RATA  SHARE  OF  A SHARED RENEWABLE ENERGY
FACILITY'S OUTPUT IS THE SAME;
  (I) DETERMINE THE APPROPRIATENESS OF A  SUBSCRIBER  COMPANY  REQUIRING
DEPOSITS  FOR  A  SUBSCRIPTION IN A SHARED RENEWABLE FACILITY, AND IF SO
DETERMINED, THE ALLOWANCES AND/OR LIMITATIONS FOR SUCH DEPOSITS; AND
  (J) INCLUDE ANY ADDITIONAL CONSUMER PROTECTIONS THE  COMMISSION  DEEMS
NECESSARY.
  7. IN DEVELOPING ITS ORDER, THE COMMISSION SHALL CONSIDER:
  (A)  THE  NECESSITY  OF  ADDITIONAL  ELECTRIC  CAPACITY IN AN ELECTRIC
CORPORATION'S TRANSMISSION AND DISTRIBUTION SYSTEM TERRITORY;
  (B) THE COST OF ELECTRIC SYSTEM UPGRADES NECESSARY TO ACCOMMODATE  THE
INTERCONNECTION  AND  OPERATION  OF  A SHARED RENEWABLE ENERGY FACILITY,
INCLUDING THE IMPACT OF SUCH UPGRADES  ON  LOW-INCOME  CUSTOMERS  OF  AN
ELECTRIC CORPORATION; AND
  (C) THE ABILITY OF A SHARED RENEWABLE ENERGY FACILITY TO PRODUCE RELI-
ABLE  ELECTRICITY  DURING TIMES OF PEAK ELECTRIC DEMAND AS DETERMINED BY
THE COMMISSION.
  8. INTERCONNECTION OF SHARED RENEWABLE ENERGY  FACILITIES  AND  CONDI-
TIONS  OF  SERVICE.  THE  COMMISSION  SHALL  DEVELOP A MODEL CONTRACT TO
GOVERN THE PROVISIONS OF INTERCONNECTION BETWEEN  A  SUBSCRIBER  COMPANY
AND  AN  ELECTRIC CORPORATION. UPON THE COMPLETION OF THE ORDER REQUIRED
PURSUANT TO SUBDIVISION TWO OF  THIS  SECTION  AN  ELECTRIC  CORPORATION
SHALL PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILI-
TIES  PROVIDED  THAT  THE SUBSCRIBER COMPANY ENTERS INTO A CONTRACT WITH
THE ELECTRIC CORPORATION, AND COMPLIES WITH THE  ELECTRIC  CORPORATION'S
SCHEDULE  AND  WITH STANDARDS AND REQUIREMENTS OF THIS SECTION. NO ELEC-
TRIC CORPORATION SHALL PERMIT THE INTERCONNECTION OF A SHARED  RENEWABLE
ENERGY  FACILITY  NOR  ACCEPT  A  SUBSCRIPTION  ROSTER FROM A SUBSCRIBER
COMPANY FOR A SHARED RENEWABLE ENERGY FACILITY UNLESS SUCH FACILITY  (A)
HAS  AT  LEAST TEN SUBSCRIBERS; AND (B) IS LOCATED IN A SHARED RENEWABLE
ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE AS REFLECTED  ON  A
MAP  PURSUANT  TO SUBDIVISION FOUR OF THIS SECTION. EACH ELECTRIC CORPO-
RATION SHALL INTERCONNECT SHARED  RENEWABLE  ENERGY  FACILITIES  LOCATED
WITHIN  THE  BOUNDARIES  OF THE SHARED RENEWABLE ENERGY FACILITY COMPAT-
IBILITY AND ACCOMMODATION ZONE MAP PURSUANT TO SUBDIVISION FOUR OF  THIS
SECTION  ON  A  FIRST  COME,  FIRST  SERVED BASIS, UNTIL THE TOTAL RATED
GENERATING CAPACITY ATTRIBUTABLE TO SUCH FACILITIES IS EQUIVALENT TO ONE
HALF OF ONE PERCENT OF THE ELECTRIC CORPORATION'S  ELECTRIC  DEMAND  FOR
THE  YEAR  TWO  THOUSAND FIVE, AS DETERMINED BY THE COMMISSION, PROVIDED
THAT THE COMMISSION SHALL HAVE THE AUTHORITY, AFTER JANUARY  FIRST,  TWO
THOUSAND  TWENTY-FOUR,  TO  INCREASE  THE PERCENT LIMIT IF IT DETERMINES
THAT ADDITIONAL INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES IS
IN THE PUBLIC INTEREST, PROVIDED FURTHER THAT  NO  GREATER  THAN  TWENTY
PERCENT  OF  THE  COMBINED NAMEPLATE CAPACITY OF SHARED RENEWABLE ENERGY
FACILITIES AUTHORIZED PURSUANT TO THIS SECTION SHALL  BE  LOCATED  IN  A
POTENTIAL  ENVIRONMENTAL JUSTICE AREA AS DETERMINED BY THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, AS SUCH AREAS WERE DEPICTED  ON  MAY  FIFTH,
TWO THOUSAND FOURTEEN. IN THE EVENT THAT THE ELECTRIC CORPORATION DETER-
MINES  THAT IT IS NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANS-
FORMERS, OR OTHER EQUIPMENT TO PROTECT THE SAFETY AND ADEQUACY OF  ELEC-
TRIC SERVICE PROVIDED TO CUSTOMERS, THE SUBSCRIBER COMPANY SHALL PAY THE

S. 7727                             6

ELECTRIC  CORPORATION'S  ACTUAL  COSTS  OF INSTALLING THE TRANSFORMER OR
TRANSFORMERS, OR OTHER EQUIPMENT.
  9.  (A)  FOR  A  SHARED RENEWABLE ENERGY FACILITY, THE TOTAL AMOUNT OF
ELECTRICAL OUTPUT AVAILABLE  FOR  ALLOCATION  TO  SUBSCRIBERS  SHALL  BE
DETERMINED BY A PRODUCTION METER INSTALLED AT THE SHARED RENEWABLE ENER-
GY  FACILITY  AND  PAID FOR BY THE SUBSCRIBER COMPANY OWNING SUCH SHARED
RENEWABLE ENERGY FACILITY. IT SHALL BE THE RESPONSIBILITY OF  THE  ELEC-
TRIC  CORPORATION TO READ THE PRODUCTION METER AND APPLY BILL CREDITS TO
SUBSCRIBERS OF SUCH FACILITIES AS DIRECTED UNDER A SUBSCRIPTION  ROSTER,
PROVIDED THAT AN ELECTRIC CORPORATION MAY ASSESS A CHARGE TO A SUBSCRIB-
ER  COMPANY  TO  RECOVER REASONABLE EXPENSES RELATED TO THE READING OF A
PRODUCTION METER.
  (B) A SUBSCRIBER COMPANY SHALL BE RESPONSIBLE  FOR  PROVIDING  TO  THE
ELECTRIC  CORPORATION,  AT THE BEGINNING OF EACH BILLING CYCLE, OR OTHER
PERIOD AS DETERMINED BY THE COMMISSION, A SUBSCRIPTION ROSTER  IDENTIFY-
ING  THE PRO-RATA SHARE OF ELECTRICAL OUTPUT ALLOCATED TO EACH SUBSCRIB-
ER. A SUBSCRIBER COMPANY MAY ADD ADDITIONAL SUBSCRIBER AGREEMENTS  TO  A
SUBSCRIPTION  ROSTER FOR THE PRECEDING BILLING CYCLE, OR OTHER PERIOD AS
DETERMINED BY THE COMMISSION.
  (C) AT THE END OF EACH MONTH, THE ELECTRIC CORPORATION SHALL  APPLY  A
CREDIT  TO  THE  NEXT  BILL FOR SERVICE TO EACH SUBSCRIBER BASED ON EACH
SUBSCRIBER'S PRO-RATA SHARE OF THE  ACTUAL  ELECTRICAL  OUTPUT  OF  SUCH
FACILITY  AT  THE  SAME  RATE  PER  KILOWATT  HOUR APPLICABLE TO SERVICE
PROVIDED TO OTHER CUSTOMERS IN THE  SAME  SERVICE  CLASS  WHICH  DO  NOT
SUBSCRIBE TO A SHARED RENEWABLE ENERGY FACILITY.
  (D)  IN  THE  EVENT  THAT  THE  ELECTRICAL OUTPUT PRODUCED BY A SHARED
RENEWABLE ENERGY FACILITY AND ALLOCATED TO A SUBSCRIBER DURING A BILLING
PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY USED BY A SUBSCRIBER, THE ELEC-
TRIC CORPORATION SHALL APPLY A CREDIT FOR SUCH EXCESS OUTPUT TO THE NEXT
BILL FOR SERVICE TO THE SUBSCRIBER FOR THE NET ELECTRICITY  PROVIDED  AT
THE  SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER
CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT SUBSCRIBE TO  A  SHARED
RENEWABLE ENERGY FACILITY.
  (E)  IN  THE EVENT THAT THE ELECTRIC CORPORATION IMPOSES CHARGES BASED
ON KILOWATT DEMAND ON CUSTOMERS WHO ARE IN THE SAME SERVICE CLASS  AS  A
SUBSCRIBER  WHO  IS  ENTITLED TO THE OUTPUT OF A SHARED RENEWABLE ENERGY
FACILITY PURSUANT TO A SUBSCRIPTION IN A SHARED RENEWABLE ENERGY FACILI-
TY BUT ARE NOT SUBSCRIBERS, THE ELECTRIC CORPORATION MAY IMPOSE THE SAME
CHARGES AT THE SAME RATES TO THE SUBSCRIBER, PROVIDED HOWEVER, THAT  THE
KILOWATT  DEMAND  FOR  SUCH  DEMAND CHARGES IS DETERMINED BY THE MAXIMUM
MEASURED KILOWATT DEMAND ACTUALLY SUPPLIED BY THE  ELECTRIC  CORPORATION
TO THE SUBSCRIBER DURING THE BILLING PERIOD.
  10.  (A)  ON  OR  BEFORE THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS
SECTION, THE COMMISSION SHALL  ESTABLISH  STANDARDS  FOR  THE  SAFE  AND
ADEQUATE  INTERCONNECTION  OF  SHARED  RENEWABLE ENERGY FACILITIES. SUCH
STANDARDS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO:
  (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE FACILITY FROM THE
ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEM FOR VOLTAGE IN THE CASE OF
VOLTAGE AND FREQUENCY DEVIATIONS, POWER OUTAGES  AND  OTHER  EVENTS  THE
COMMISSION DEEMS NECESSARY; AND
  (II) A MANUAL LOCKABLE DISCONNECT SWITCH PAID FOR AND INSTALLED BY THE
SUBSCRIBER COMPANY FOR THE PURPOSE OF ISOLATING THE FACILITY AND LOCATED
IN  AN  EASILY  ACCESSIBLE AREA ON THE PREMISES OF SUCH SHARED RENEWABLE
ENERGY FACILITY AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE  OF  ISOLATING
THE SHARED RENEWABLE ENERGY FACILITY.

S. 7727                             7

  (B)  IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF A SHARED
RENEWABLE ENERGY FACILITY 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 SUBSCRIBER COMPANY OWNING SUCH SHARED RENEWABLE ENERGY
FACILITY TO COMPLY WITH REASONABLE MEASURES TO ENSURE THE SAFETY OF  THE
LOCAL FEEDER LINE.
  (C)  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 5. 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  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; AND (III) TO IMPLEMENT PROGRAMS AND
POLICIES DESIGNED TO PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE
ENERGY FACILITIES OWNED AND OPERATED BY  SUBSCRIBER  COMPANIES  FOR  THE
BENEFIT  OF  RESIDENTIAL  AND  NON-RESIDENTIAL CUSTOMERS CONSISTENT WITH
SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW.
  S 6. This act shall take effect immediately.

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