Senate Bill S3544B

2015-2016 Legislative Session

Directs the public service commission to issue an order governing the equitable sharing of interconnection costs for distributed generation resources

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 13, 2016	print number 3544b
Jun 13, 2016	amend (t) and recommit to finance
Feb 22, 2016	print number 3544a
Feb 22, 2016	amend and recommit to finance
Jan 06, 2016	referred to finance
Feb 12, 2015	referred to finance

Bill Amendments

Original

B (Active)

co-Sponsors

2015-S3544 - Details

See Assembly Version of this Bill:: A10426
Current Committee:: Senate Finance
Law Section:: Public Services
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7727
2017-2018: A597

2015-S3544 - Summary

Directs the public service commission to issue an order governing the equitable sharing of interconnection costs for distributed generation resources.

2015-S3544 - Sponsor Memo

                                BILL NUMBER:S3544

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-o 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 Five 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 § 66-0 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.

LEGISLATIVE HISTORY:  2014 - S. 7727 - Finance Committee/A.9931 - 3rd
reading.

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

EFFECTIVE DATE: Immediate.

2015-S3544 - Bill Text download pdf

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

                                  3544

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- 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-O, 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-O OF  THIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00892-02-5

S. 3544                             2

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-
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-O OF THIS CHAPTER.
  S 4. The public service law is amended by adding a new section 66-o to
read as follows:
  S 66-O. 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;

S. 3544                             3

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.
  (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 SIXTEEN, 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 SEVENTEEN. 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

S. 3544                             4

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
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-

S. 3544                             5

RATION BUT INSTEAD SHALL BE THE RESPONSIBILITY OF THE SUBSCRIBER  COMPA-
NY;
  (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-FIVE, 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-

S. 3544                             6

TRIC SERVICE PROVIDED TO CUSTOMERS, THE SUBSCRIBER COMPANY SHALL PAY THE
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. 3544                             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-O OF THE PUBLIC SERVICE LAW.
  S 6. This act shall take effect immediately.

co-Sponsors

2015-S3544A - Details

See Assembly Version of this Bill:: A10426
Current Committee:: Senate Finance
Law Section:: Public Services
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7727
2017-2018: A597

2015-S3544A - Summary

Directs the public service commission to issue an order governing the equitable sharing of interconnection costs for distributed generation resources.

2015-S3544A - Sponsor Memo

                                 BILL NUMBER:  S3544A

 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-o 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 Five 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 § 66-0 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.

 LEGISLATIVE HISTORY :  2014 - S. 7727 - Finance Committee/A.9931 -
3rd reading.

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

 EFFECTIVE DATE : Immediate.

2015-S3544A - Bill Text download pdf

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

                                 3544--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by Sens. GRIFFO, ADDABBO, HAMILTON, HOYLMAN, VALESKY -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Finance  --  recommitted to the Committee on Finance in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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-O, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00892-10-6

S. 3544--A                          2

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-O 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-
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-O OF THIS CHAPTER.
  S 4. The public service law is amended by adding a new section 66-o to
read as follows:
  S  66-O.  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.

S. 3544--A                          3

  (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.
  (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 SEVENTEEN, THE
COMMISSION 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 OPER-
ATION 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 EIGHTEEN. 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:

S. 3544--A                          4

  (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
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;

S. 3544--A                          5

  (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;
  (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. THE COMMISSION  SHALL  DEVELOP  A  MODEL  CONTRACT  TO  GOVERN  THE
PROVISIONS  OF INTERCONNECTION BETWEEN A SUBSCRIBER COMPANY AND AN ELEC-
TRIC 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  FACILITIES  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 ELECTRIC 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 CORPORATION SHALL INTER-
CONNECT SHARED RENEWABLE ENERGY FACILITIES LOCATED WITHIN THE BOUNDARIES
OF THE SHARED RENEWABLE ENERGY FACILITY COMPATIBILITY AND  ACCOMMODATION
ZONE  MAP  PURSUANT TO SUBDIVISION FOUR OF THIS SECTION ON A FIRST COME,
FIRST SERVED BASIS, UNTIL THE TOTAL RATED GENERATING CAPACITY  ATTRIBUT-
ABLE  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-SIX, 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

S. 3544--A                          6

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 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  CUSTOMERS,  THE
SUBSCRIBER  COMPANY SHALL PAY THE 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

S. 3544--A                          7

  (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.
  (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-O OF THE PUBLIC SERVICE LAW.
  S 6. This act shall take effect immediately.

co-Sponsors

2015-S3544B (ACTIVE) - Details

See Assembly Version of this Bill:: A10426
Current Committee:: Senate Finance
Law Section:: Public Services
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7727
2017-2018: A597

2015-S3544B (ACTIVE) - Summary

Directs the public service commission to issue an order governing the equitable sharing of interconnection costs for distributed generation resources.

2015-S3544B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3544B

 TITLE OF BILL :  An act to direct the public service commission to
issue an order governing the equitable sharing of interconnection
costs for distributed generation resources

 PURPOSE :

To provide for cost sharing in instances when two or more distributed
generation resources share equipment necessary for interconnection.

 SUMMARY OF PROVISIONS :

This special act would:

*define distributed generation resources to mean solar, farm waste,
micro-hydroelectric, combined heat and power, fuel cell and wind
generating electric equipment under § 66-j and § 66-1 of the Public
Service Law and equipment necessary for community net-metering.
direct the PSC to issue an order within 365 days to provide standards
for the reasonable sharing of costs where two or more distributed
generation (DG) resources would utilize the same dedicated electrical
equipment;

*direct the commission to provide standards for the reimbursement of
costs to customer-generators and persons who previously paid for the

installation of dedicated equipment which would be utilized by another
customer-generator or person.

*direct PSC to establish a process to provide a refund of
interconnection costs borne by customers of a community net-metering
facility in the event the facility's owner receives a cost-sharing
payment.

 JUSTIFICATION :

In July 2015, the Public Service Commission approved an order
authorizing community net-metering. This community net-metering model
promises to provide millions of New Yorkers the ability to participate
in renewable energy production. As in other states which have adopted
similar models, New York is likely to experience considerable
development of shared facilities.

Many of these facilities will be located near others and thus
necessitate the sharing of dedicated electrical infrastructure,
including wires, transformers and substations. This bill will ensure
that those who have paid for the installation of such equipment will
be reimbursed for a portion of their costs in the event another
project significantly utilizes such equipment. We want the playing
field in New York to be as even as possible to encourage responsible
siting of distributed generation. The sharing of certain costs is a
critical piece of that goal.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediate.

2015-S3544B (ACTIVE) - Bill Text download pdf

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

                                 3544--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by Sens. GRIFFO, ADDABBO, HAMILTON, HOYLMAN, VALESKY -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Finance  --  recommitted to the Committee on Finance in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN ACT to direct the public service commission to issue an order govern-
  ing  the  equitable  sharing  of interconnection costs for distributed
  generation resources

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

  Section  1. 1. No later than 365 days after the effective date of this
act, the public service commission shall issue an  order  governing  the
equitable sharing of interconnection costs where two or more distributed
generation resources substantially utilize the same dedicated equipment,
including but not limited to dedicated electric cables, wires, circuits,
transformers  and  substations,  which  but  for  the  operation of such
resources would not have been installed by an electric corporation.
  2.  For  the  purposes  of  this  section,   "distributed   generation
resources" shall refer to:
  (a)  energy-generating  equipment defined in paragraphs (d), (e), (f),
(g) and (h) of subdivision 1 of section 66-j of the public service law;
  (b) energy-generating equipment defined in paragraph (f)  of  subdivi-
sion 1 of section 66-l of the public service law; and
  (c)  energy-generating  equipment necessary for community net-metering
as established by the commission on or after July 17, 2015.
  3. The order established by such commission shall include:
  (a) the reasonable payment of costs to customer-generators and persons
who previously paid the costs of installing dedicated equipment required

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00892-11-6

S. 3544--B                          2

for the interconnection of a distributed generation resource. The  order
shall provide for cost-sharing payments under the following scenarios:
  (i)  an  applicant  who has received approval from his or her electric
corporation to interconnect  a  distributed  generation  resource  which
would  substantially  utilize existing equipment paid for by one or more
customer-generators or persons owning or operating one or more  distrib-
uted generation resources.
  (ii)  two  or  more  applicants  who have received approval from their
electric corporation to interconnect  distributed  generation  resources
which  would substantially utilize existing equipment paid for by one or
more customer-generators or persons owning  or  operating  one  or  more
distributed generation resources.
  (iii)  one  or  more  applicants who have received approval from their
electric corporation to interconnect distributed  generation  resources,
and  seek  to upgrade existing equipment paid for by one or more custom-
er-generators or persons owning or operating  one  or  more  distributed
generation  resources,  and  under which all parties would substantially
utilize such upgraded equipment.
  (b) a process by which the department of public service  would  notify
applicants  of  their  requirement  to  provide cost-sharing payments to
customer-generators or persons owning or operating one or more  distrib-
uted generation resources and previously had borne the costs of install-
ing dedicated equipment necessary for interconnection.
  (c)  a  process  by  which  subscribers  to  a  community net-metering
distributed generation facility where the owner has  received  equipment
cost-sharing  payments  will receive a refund against subscription costs
proportional to the share which they have paid for the  installation  of
such equipment; and
  (d) any other guidelines such commission deems necessary to effectuate
equitable  cost-sharing  and  subscriber  protections, and encourage the
responsible siting of distributed generation resources.
  4. In developing  the  order  pursuant  to  subdivision  one  of  this
section,  the  public service commission shall consult with the New York
state energy research and development authority, and solicit  the  input
of renewable energy advocates and electric corporations.
  S 2. This act shall take effect immediately.

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