S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7742
 
                             I N  S E N A T E
 
                             February 14, 2018
                                ___________
 
 Introduced  by  Sens.  HELMING, RITCHIE, GRIFFO, FUNKE -- (at request of
   the Legislative Commission on  Rural  Resources)  --  read  twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Energy and Telecommunications
 
 AN ACT to amend the public service law, in relation to setting the  rate
   of  credit  per  kilowatt  hour  for  farm  waste generating equipment
   customer-generators, which includes the anaerobic digestion  of  agri-
   cultural waste
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative Intent. It is the intent of  this  Legislature
 to  support  the  ongoing  financial  viability of farm waste generating
 equipment customer-generators--more commonly known as  anaerobic  diges-
 ters--in  New  York state. Anaerobic digesters located on New York dairy
 farms create critical environmental attributes including, but not limit-
 ed to, reducing methane gas releases and abating nutrient  contamination
 of  nearby  water sources.   The Legislature also recognizes that legacy
 anaerobic digesters are not financially viable under the current compen-
 sation methodology; as such, legacy anaerobic digesters are at  risk  of
 closure.  Any  closures  would undo the significant financial investment
 made by the state of New York to install anaerobic digesters  under  the
 Clean  Energy  Fund program.  Closures would also put New York behind on
 meeting greenhouse gas emission reduction goals as set forth  under  the
 State  Energy  Plan, and behind on developing a clean, distributed grid.
 While the New York state  Public  Service  Commission  has  initiated  a
 proceeding  to  transition  to  a  compensation methodology based on the
 value of distributed energy resources, the  implementation  of  the  new
 methodology  will  not address the immediate financial need of existing,
 or legacy, anaerobic digesters, or new digesters installed prior to  the
 finalization of a meaningful value stack methodology that includes envi-
 ronmental  values attributed to the avoided use of electricity generated
 by fossil fuels and the reduction of on-site greenhouse gas emissions.
   The Legislature hereby determines that the public interest requires an
 increase in the rate of compensation for  customer-generators  operating
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13738-03-8

 S. 7742                             2
 
 legacy  anaerobic  digesters,  and  new digesters installed prior to the
 finalization of a meaningful value stack methodology, which  will  apply
 to  credit  calculations  for  the  customer-generators' bills following
 implementation of this legislation.
   §  2.    Paragraph  (b) of subdivision 4 of section 66-j of the public
 service law, as amended by chapter 494 of the laws of 2014,  is  amended
 to read as follows:
   (b)  In the event that the amount of electricity produced by a custom-
 er-generator during the billing period exceeds the amount of electricity
 used by the customer-generator, the corporation shall apply a credit  to
 the  next  bill  for service to the customer-generator for the net elec-
 tricity provided at the  same  rate  per  kilowatt  hour  applicable  to
 service  provided  to other customers in the same service class which do
 not generate electricity onsite,  except  for  micro-combined  heat  and
 power  or fuel cell customer-generators [or farm waste generating equip-
 ment customer-generators as described in subparagraph (ix) of  paragraph
 (a)  of  subdivision  one  of this section], who will be credited at the
 corporation's avoided costs; PROVIDED, HOWEVER, THAT IN THE CASE OF FARM
 WASTE GENERATING EQUIPMENT CUSTOMER-GENERATORS,  THE  CORPORATION  SHALL
 APPLY  A  CREDIT TO THE NEXT BILL AT A RATE OF NO LESS THAN TWELVE CENTS
 PER KILOWATT HOUR. The avoided cost credit  provided  to  micro-combined
 heat  and power or fuel cell customer-generators [or farm waste generat-
 ing equipment customer-generators as described in subparagraph  (ix)  of
 paragraph  (a)  of subdivision one of this section] shall be treated for
 ratemaking purposes as a purchase of electricity in the market  that  is
 includable in commodity costs.
   § 3. This act shall take effect immediately.