S T A T E O F N E W Y O R K ________________________________________________________________________ 107 2015-2016 Regular Sessions I N A S S E M B L Y (PREFILED) January 7, 2015 ___________ Introduced by M. of A. PAULIN, MOYA, ROSENTHAL, BARRETT, GALEF, GUNTHER, HOOPER, LIFTON, LUPARDO, OTIS, QUART, TITONE, CRESPO, SOLAGES, ENGLE- BRIGHT, FAHY, RODRIGUEZ, BUCHWALD, LENTOL, MAGEE, RIVERA, SCHIMEL, THIELE -- read once and referred to the Committee on Energy 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: 1 Section 1. Subparagraph (i) of paragraph (b) of subdivision 4 of 2 section 94-a of the executive law, as amended by section 12 of part A of 3 chapter 173 of the laws of 2013, is amended to read as follows: 4 (i) on behalf of the secretary, initiate, intervene in, or participate 5 in any proceedings before the public service commission or the depart- 6 ment of public service, to the extent authorized by sections three-b, 7 twenty-four-a, SIXTY-SIX-O, seventy-one, eighty-four or ninety-six of 8 the public service law or any other applicable provision of law, where 9 he or she deems such initiation, intervention or participation to be 10 necessary or appropriate; 11 S 2. Section 2 of the public service law is amended by adding a new 12 subdivision 2-e to read as follows: 13 2-E. THE TERM "SHARED RENEWABLE ENERGY FACILITY" WHEN USED IN THIS 14 CHAPTER MEANS SOLAR ELECTRIC GENERATING EQUIPMENT AS SUCH TERM IS 15 DEFINED IN SECTION SIXTY-SIX-J OF THIS CHAPTER; AND WIND ELECTRIC GENER- 16 ATING EQUIPMENT AS SUCH TERM IS DEFINED IN SECTION SIXTY-SIX-L OF THIS 17 CHAPTER. SUCH FACILITIES SHALL: (A) NOT EXCEED A NAMEPLATE CAPACITY OF 18 GREATER THAN TWO MEGAWATTS, PROVIDED THAT FACILITIES LOCATED IN A POTEN- 19 TIAL ENVIRONMENTAL JUSTICE AREA, AS DETERMINED BY THE DEPARTMENT OF 20 ENVIRONMENTAL CONSERVATION AS SUCH AREAS WERE DEPICTED ON MAY FIFTH, TWO 21 THOUSAND FOURTEEN, SHALL NOT EXCEED A NAMEPLATE CAPACITY OF GREATER THAN 22 ONE MEGAWATT; (B) BE LOCATED, CONSTRUCTED AND OPERATED, IN ACCORDANCE EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00892-02-5 A. 107 2 1 WITH ANY APPLICABLE LOCAL LAW, ORDINANCE OR REGULATION; (C) BE LOCATED 2 IN A SHARED RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION 3 ZONE AS PROVIDED FOR IN SUBDIVISION FOUR OF SECTION SIXTY-SIX-O OF THIS 4 CHAPTER; (D) BE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH 5 APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, CONNECTED TO THE ELECTRIC 6 SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANS- 7 MISSION AND DISTRIBUTION FACILITIES; AND (E) SHALL HAVE NO LESS THAN TEN 8 SUBSCRIBERS. 9 S 3. Subdivision 1 of section 5 of the public service law is amended 10 by adding a new paragraph i to read as follows: 11 I. TO THE DETERMINATION OF COMPATIBILITY, INTERCONNECTION AND OPERA- 12 TION OF SHARED RENEWABLE ENERGY FACILITIES AS SUCH TERM IS DEFINED IN 13 PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIXTY-SIX-O OF THIS CHAPTER. 14 S 4. The public service law is amended by adding a new section 66-o to 15 read as follows: 16 S 66-O. SHARED RENEWABLE ENERGY FACILITIES. 1. AS USED IN THIS 17 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 18 (A) "SUBSCRIBER" MEANS A RESIDENTIAL OR NON-RESIDENTIAL CUSTOMER OF AN 19 ELECTRIC CORPORATION WHO HAS: (I) ENTERED INTO A POWER SUBSCRIBER AGREE- 20 MENT WITH A SUBSCRIBER COMPANY; AND (II) IDENTIFIED ONE OR MORE METERS 21 TO WHICH THE PRO-RATA SHARE OF THE ELECTRICAL OUTPUT OF A FACILITY SHALL 22 BE ATTRIBUTED PURSUANT TO HIS OR HER POWER SUBSCRIBER AGREEMENT. SUCH 23 METERS SHALL BE WITHIN EITHER THE SAME COUNTY AS THE SHARED RENEWABLE 24 ENERGY FACILITY TO WHICH A SUBSCRIBER HAS ENTERED INTO A POWER SUBSCRIB- 25 ER AGREEMENT, EXCEPT THAT IN THE CASE OF A SUBSCRIBER WHOSE METERS ARE 26 LOCATED IN A COUNTY OF TWENTY THOUSAND OR LESS, ACCORDING TO THE MOST 27 RECENT CENSUS, THE SUBSCRIBER MAY ENTER INTO A POWER SUBSCRIBER AGREE- 28 MENT WITH A SUBSCRIBER COMPANY WHOSE SHARED RENEWABLE ENERGY FACILITY IS 29 LOCATED IN AN ADJACENT COUNTY OF TWENTY THOUSAND OR LESS WITHIN THE SAME 30 SERVICE TERRITORY OF THE ELECTRIC CORPORATION OF WHICH HE OR SHE IS A 31 CUSTOMER, AND IS LOCATED WITHIN THE SAME LOAD ZONE AS DETERMINED BY THE 32 LOCATION BASED MARGINAL PRICE AS OF THE DATE OF THE INITIAL REQUEST BY A 33 SUBSCRIBER COMPANY TO INTERCONNECT A SHARED RENEWABLE ENERGY FACILITY. 34 (B) "POWER SUBSCRIBER AGREEMENT" OR "SUBSCRIBER AGREEMENT" MEANS AN 35 AGREEMENT BETWEEN A SUBSCRIBER AND A SUBSCRIBER COMPANY THAT MEETS STAN- 36 DARDS PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION. SUCH 37 AGREEMENT SHALL: (I) INCLUDE THE NAME, ADDRESS AND ELECTRIC CORPORATION 38 ACCOUNT NUMBER TO WHICH THE SUBSCRIPTION SHALL BE ATTRIBUTED; (II) ENTI- 39 TLE A SUBSCRIBER TO A PRO-RATA SHARE OF THE ACTUAL ELECTRICAL OUTPUT OF 40 A SHARED RENEWABLE ENERGY FACILITY; AND (III) PROVIDE THAT A SUBSCRIB- 41 ER'S PRO-RATA SHARE WILL BE REFLECTED AS A BILL CREDIT AGAINST THE 42 SUBSCRIBER'S MONTHLY ELECTRIC USAGE AS METERED BY HIS OR HER ELECTRIC 43 CORPORATION AND BILLED BY SUCH ELECTRIC CORPORATION ON A PER KILOWATT 44 HOUR BASIS. 45 (C) "SUBSCRIPTION ROSTER" MEANS THE COMPILATION OF INFORMATION FROM 46 POWER SUBSCRIBER AGREEMENTS FOR A PARTICULAR SHARED RENEWABLE ENERGY 47 FACILITY WHICH IS COLLECTED BY THE SUBSCRIBER COMPANY OWNING SUCH FACIL- 48 ITY FOR THE PURPOSES OF DIRECTING AN ELECTRIC CORPORATION TO APPLY BILL 49 CREDITS AGAINST SUBSCRIBERS' MONTHLY ELECTRIC USAGE AS METERED AND 50 RECOVERED BY SUCH ELECTRIC CORPORATION THROUGH A MONTHLY BILL. 51 (D) "SUBSCRIBER COMPANY" MEANS A GENERAL PARTNERSHIP, LIMITED PARTNER- 52 SHIP, LIMITED LIABILITY COMPANY, COOPERATIVE, S-CORPORATION, C-CORPORA- 53 TION OR NOT-FOR-PROFIT CORPORATION WHOSE PURPOSE IS TO OWN AND OPERATE A 54 SHARED RENEWABLE ENERGY FACILITY. 55 (E) "SUBSCRIPTION" MEANS THE RIGHTS AND RESPONSIBILITIES OF A 56 SUBSCRIBER TO A PRO-RATA PORTION OF THE ACTUAL ELECTRICAL OUTPUT OF A A. 107 3 1 SHARED RENEWABLE ENERGY FACILITY, AS SET FORTH IN A SUBSCRIBER AGREE- 2 MENT. A SUBSCRIPTION SHALL: (I) AT A MINIMUM, REPRESENT AT LEAST ONE 3 KILOWATT OF A SHARED RENEWABLE ENERGY FACILITY'S GENERATING CAPACITY; 4 AND (II) NOT EXCEED ONE HUNDRED PERCENT OF A SUBSCRIBER'S ELECTRICAL 5 CONSUMPTION AS MEASURED IN KILOWATT HOURS FROM THE TWELVE-MONTH PERIOD 6 IMMEDIATELY PRECEDING THE ESTABLISHMENT OF A SUBSCRIBER AGREEMENT. 7 (F) "BILL CREDIT" MEANS A CREDIT MEASURED ON A PER KILOWATT HOUR BASIS 8 AND APPLIED AGAINST A SUBSCRIBER'S NEXT MONTHLY BILL FOR SERVICE ISSUED 9 BY HIS OR HER ELECTRIC CORPORATION BASED UPON THE PRO-RATA SHARE OF THE 10 ELECTRICAL OUTPUT OF THE SHARED RENEWABLE ENERGY FACILITY TO WHICH THE 11 CUSTOMER IS ENTITLED PURSUANT TO A SUBSCRIBER AGREEMENT. 12 2. NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND SIXTEEN, THE COMMIS- 13 SION SHALL COMMENCE A PROCEEDING TO: (A) DEVELOP A STATEWIDE SHARED 14 RENEWABLE ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE MAP; (B) 15 ESTABLISH CRITERIA FOR THE COMPATIBLE INTERCONNECTION AND OPERATION OF 16 SHARED RENEWABLE ENERGY FACILITIES AND SUBSCRIBER PROTECTIONS; AND (C) 17 DEVELOP SUBSCRIBER PROTECTION STANDARDS. 18 3. IN DEVELOPING THE ORDER PURSUANT TO SUBDIVISION TWO OF THIS 19 SECTION, THE COMMISSION SHALL CONSULT WITH THE STATE DEPARTMENT OF ENVI- 20 RONMENTAL CONSERVATION AND THE BULK SYSTEM OPERATOR SERVING NEW YORK 21 STATE. THE COMMISSION SHALL ALSO SOLICIT PARTICIPATION AND PUBLIC 22 COMMENT FROM STAKEHOLDER ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO: 23 (A) ORGANIZATIONS ADVOCATING FOR ENVIRONMENTAL CONCERNS; 24 (B) ORGANIZATIONS REPRESENTING RENEWABLE ENERGY INDUSTRIES; 25 (C) ELECTRIC CORPORATIONS; AND 26 (D) THE LONG ISLAND POWER AUTHORITY. 27 4. THE COMMISSION MAP PURSUANT TO SUBDIVISION TWO OF THIS SECTION 28 SHALL BE DEVELOPED ON A COUNTY-BY-COUNTY BASIS. THE COMMISSION SHALL 29 DETERMINE WHICH COUNTIES, IF ANY, WOULD BENEFIT FROM THE INTERCON- 30 NECTION, OPERATION AND ELECTRICAL OUTPUT OF SHARED RENEWABLE ENERGY 31 FACILITIES, TAKING INTO CONSIDERATION FACTORS AFFECTING THE PRICE AND 32 DELIVERABILITY OF ELECTRICITY IN EACH COUNTY. THE COMMISSION SHALL 33 PUBLISH SUCH MAP AND ACCOMMODATE THE INTERCONNECTION OF SHARED RENEWABLE 34 ENERGY FACILITIES WHICH MEET THE REQUIREMENTS OF THIS SECTION AND ANY 35 RULES AND REGULATIONS OF THE COMMISSION PERTAINING THERETO NO LATER THAN 36 JULY THIRTY-FIRST, TWO THOUSAND SEVENTEEN. SUCH MAP SHALL BE UPDATED NO 37 LATER THAN JULY THIRTY-FIRST OF EACH SUCCEEDING YEAR. IN DEVELOPING THE 38 MAP PURSUANT TO THIS SUBDIVISION, THE COMMISSION SHALL CONSIDER ON A 39 COUNTY-BY-COUNTY BASIS: 40 (A) THE POTENTIAL NEED FOR ADDITIONAL ELECTRIC GENERATION AND/OR TRAN- 41 SMISSION WITHIN THE PRECEDING TEN-YEAR PERIOD; 42 (B) ELECTRIC CONGESTION ON THE HIGH VOLTAGE TRANSMISSION NETWORK WHICH 43 HAS CREATED OR IS PROJECTED TO CREATE WITHIN TEN YEARS, A SYSTEM RELI- 44 ABILITY PROBLEM, OR, AS DETERMINED BY THE COMMISSION, HAS CONTRIBUTED TO 45 A SIGNIFICANT INCREASE IN THE WHOLESALE COST OF ELECTRICITY; AND 46 (C) THE POTENTIAL FOR REDUCTION IN OVERALL EMISSIONS OF CARBON DIOX- 47 IDE, SULFUR DIOXIDE, NITROGEN OXIDE AND PARTICULATE MATTER 2.5 (PM 2.5) 48 THAT WOULD BE ATTRIBUTABLE TO THE OPERATION OF SHARED RENEWABLE ENERGY 49 FACILITIES. 50 5. THE ORDER ESTABLISHED BY THE COMMISSION PURSUANT TO SUBDIVISION TWO 51 OF THIS SECTION SHALL INCLUDE STANDARDS FOR THE INTERCONNECTION AND 52 OPERATION OF SHARED RENEWABLE ENERGY FACILITIES, INCLUDING BUT NOT 53 LIMITED TO REQUIREMENTS THAT: 54 (A) SHARED RENEWABLE ENERGY FACILITIES SHALL BE DESIGNED TO ENSURE 55 SAFE AND ADEQUATE OPERATION AND THAT ANY COSTS ASSOCIATED WITH EQUIPMENT A. 107 4 1 AND TECHNOLOGY THE COMMISSION DEEMS NECESSARY FOR SUCH PURPOSE SHALL BE 2 THE RESPONSIBILITY OF A SUBSCRIBER COMPANY; 3 (B) SHARED RENEWABLE ENERGY FACILITIES ARE DESIGNED TO OPERATE (I) IN 4 THE SAME SERVICE TERRITORY OF THE ELECTRIC CORPORATION AND COUNTY OR 5 COUNTIES AS AUTHORIZED BY THE COMMISSION TO WHICH ITS SUBSCRIBERS ARE 6 METERED FOR ELECTRICAL USAGE; AND (II) ARE LOCATED WITHIN THE SAME LOAD 7 ZONE AS DETERMINED BY THE LOCATION BASED MARGINAL PRICE AS OF THE DATE 8 OF THE INITIAL REQUEST BY A SUBSCRIBER COMPANY TO INTERCONNECT A SHARED 9 RENEWABLE ENERGY FACILITY; 10 (C) A SHARED RENEWABLE ENERGY FACILITY'S ELECTRICAL OUTPUT WILL NOT 11 RESULT IN ELECTRICAL CONGESTION OR CONTRIBUTE SIGNIFICANTLY TO ELECTRIC 12 CONGESTION WITHIN THE SERVICE TERRITORY OF AN ELECTRIC CORPORATION; 13 (D) A SUBSCRIBER COMPANY SHALL ONLY SELL TO SUBSCRIBERS AND SHALL NOT 14 SELL OR OTHERWISE MARKET TO A THIRD-PARTY, ELECTRIC CORPORATION, PUBLIC 15 POWER AUTHORITY, RURAL ELECTRIC CO-OPERATIVE, OR WHOLESALE BULK ELECTRIC 16 SYSTEM OPERATOR, WHETHER OR NOT SUCH WHOLESALE BULK ELECTRIC SYSTEM 17 OPERATOR IS LOCATED IN NEW YORK; AND 18 (E) AN ELECTRIC CORPORATION SHALL NOT BE REQUIRED TO PURCHASE ENERGY 19 PRODUCED BY A SHARED RENEWABLE ENERGY FACILITY BUT WHICH IS UNSUB- 20 SCRIBED. 21 6. THE ORDER ESTABLISHED BY THE COMMISSION SHALL INCLUDE SUBSCRIBER 22 PROTECTION STANDARDS TO BE INCLUDED IN THE POWER SUBSCRIBER AGREEMENT, 23 WHICH SHALL: 24 (A) (I) ESTABLISH CLEAR AND CONSISTENT CHARGES BASED ON A SUBSCRIBER'S 25 PRO-RATA SHARE OF A SHARED RENEWABLE ENERGY FACILITY'S OUTPUT EXPRESSED 26 AS MONTHLY CHARGES BASED ON PER KILOWATT HOUR PRODUCTION; (II) GUARANTEE 27 REFUNDS FROM THE SUBSCRIBER COMPANY TO THE SUBSCRIBER FOR ANY PORTION OF 28 SUCH SHARE THAT SUCH SHARED RENEWABLE ENERGY FACILITY DOES NOT ACTUALLY 29 PRODUCE; AND (III) GUARANTEE REFUNDS FROM A SUBSCRIBER COMPANY FOR ANY 30 PORTION OF A SUBSCRIBER'S SHARE THAT WAS NOT ACTUALLY CONSUMED BY THE 31 SUBSCRIBER; 32 (B) LIMIT THE TERM OF A POWER SUBSCRIBER AGREEMENT: (I) FOR SUBSCRIB- 33 ERS WHO ARE RESIDENTIAL CUSTOMERS OF AN ELECTRIC CORPORATION, TO NO 34 GREATER THAN FIVE YEARS; AND (II) FOR SUBSCRIBERS WHO ARE NON-RESIDEN- 35 TIAL CUSTOMERS OF AN ELECTRIC CORPORATION, TO NO GREATER THAN TEN YEARS, 36 PROVIDED THAT A SUBSCRIBER MAY RENEW HIS OR HER SUBSCRIPTION UPON ITS 37 EXPIRATION FOR AN ADDITIONAL TERM; 38 (C) REQUIRE THAT, IN THE CASE OF A SHARED RENEWABLE ENERGY FACILITY 39 WHICH HAS NOT BEEN INTERCONNECTED UPON THE SIGNING OF A POWER SUBSCRIBER 40 AGREEMENT, THE SUBSCRIBER COMPANY SHALL IMMEDIATELY NOTIFY EACH 41 SUBSCRIBER UPON THE INTERCONNECTION OF SUCH SHARED RENEWABLE ENERGY 42 FACILITY THAT HE OR SHE HAS FORTY-FIVE DAYS UPON THE RECEIPT OF THE 43 NOTICE REQUIRED PURSUANT TO THIS PARAGRAPH TO CANCEL HIS OR HER 44 SUBSCRIPTION WITH NO CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR 45 HER SUBSCRIBER COMPANY, PROVIDED THAT IF A SHARED RENEWABLE ENERGY 46 FACILITY IS NOT INTERCONNECTED WITHIN ONE YEAR OF THE COMPLETION OF A 47 POWER SUBSCRIBER AGREEMENT, THE SUBSCRIBER AGREEMENT WILL BE NULL AND 48 VOID; 49 (D) REQUIRE THAT, IN THE CASE OF A SHARED RENEWABLE ENERGY FACILITY 50 WHICH WAS INTERCONNECTED PRIOR TO THE SIGNING OF A POWER SUBSCRIBER 51 AGREEMENT, THE SUBSCRIBER SHALL HAVE FORTY-FIVE DAYS UPON THE SIGNING OF 52 A POWER SUBSCRIBER AGREEMENT TO CANCEL HIS OR HER SUBSCRIPTION WITH NO 53 CANCELLATION OR OTHER CHARGES ASSESSED BY HIS OR HER SUBSCRIBER COMPANY; 54 (E) PROHIBIT A SUBSCRIBER COMPANY FROM TRANSFERRING A SUBSCRIPTION 55 FROM ONE SHARED RENEWABLE ENERGY FACILITY TO ANOTHER, REGARDLESS OF 56 WHETHER THE SUBSCRIBER FACILITY TO WHICH A SUBSCRIBER AGREEMENT WOULD BE A. 107 5 1 TRANSFERRED IS OWNED OR OPERATED BY THE SAME COMPANY, WITHOUT A 2 SUBSCRIBER'S CONSENT; 3 (F) ESTABLISH THAT ANY COMPLAINTS BY A SUBSCRIBER ABOUT HIS OR HER 4 SUBSCRIPTION SHALL BE NOT BE THE RESPONSIBILITY OF THE ELECTRIC CORPO- 5 RATION BUT INSTEAD SHALL BE THE RESPONSIBILITY OF THE SUBSCRIBER COMPA- 6 NY; 7 (G) REQUIRE A SUBSCRIBER COMPANY SEEKING TO INTERCONNECT PURSUANT TO 8 THIS SECTION TO ESTABLISH AND MAINTAIN A COMPLAINT HANDLING PROCESS; 9 (H) PROHIBIT A SUBSCRIBER COMPANY FROM CHARGING DIFFERENTIAL 10 SUBSCRIPTION FEES TO SUBSCRIBERS WHO ARE CUSTOMERS OF THE SAME CLASS OF 11 ELECTRIC SERVICE WHOSE PRO-RATA SHARE OF A SHARED RENEWABLE ENERGY 12 FACILITY'S OUTPUT IS THE SAME; 13 (I) DETERMINE THE APPROPRIATENESS OF A SUBSCRIBER COMPANY REQUIRING 14 DEPOSITS FOR A SUBSCRIPTION IN A SHARED RENEWABLE FACILITY, AND IF SO 15 DETERMINED, THE ALLOWANCES AND/OR LIMITATIONS FOR SUCH DEPOSITS; AND 16 (J) INCLUDE ANY ADDITIONAL CONSUMER PROTECTIONS THE COMMISSION DEEMS 17 NECESSARY. 18 7. IN DEVELOPING ITS ORDER, THE COMMISSION SHALL CONSIDER: 19 (A) THE NECESSITY OF ADDITIONAL ELECTRIC CAPACITY IN AN ELECTRIC 20 CORPORATION'S TRANSMISSION AND DISTRIBUTION SYSTEM TERRITORY; 21 (B) THE COST OF ELECTRIC SYSTEM UPGRADES NECESSARY TO ACCOMMODATE THE 22 INTERCONNECTION AND OPERATION OF A SHARED RENEWABLE ENERGY FACILITY, 23 INCLUDING THE IMPACT OF SUCH UPGRADES ON LOW-INCOME CUSTOMERS OF AN 24 ELECTRIC CORPORATION; AND 25 (C) THE ABILITY OF A SHARED RENEWABLE ENERGY FACILITY TO PRODUCE RELI- 26 ABLE ELECTRICITY DURING TIMES OF PEAK ELECTRIC DEMAND AS DETERMINED BY 27 THE COMMISSION. 28 8. INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES AND CONDI- 29 TIONS OF SERVICE. THE COMMISSION SHALL DEVELOP A MODEL CONTRACT TO 30 GOVERN THE PROVISIONS OF INTERCONNECTION BETWEEN A SUBSCRIBER COMPANY 31 AND AN ELECTRIC CORPORATION. UPON THE COMPLETION OF THE ORDER REQUIRED 32 PURSUANT TO SUBDIVISION TWO OF THIS SECTION AN ELECTRIC CORPORATION 33 SHALL PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILI- 34 TIES PROVIDED THAT THE SUBSCRIBER COMPANY ENTERS INTO A CONTRACT WITH 35 THE ELECTRIC CORPORATION, AND COMPLIES WITH THE ELECTRIC CORPORATION'S 36 SCHEDULE AND WITH STANDARDS AND REQUIREMENTS OF THIS SECTION. NO ELEC- 37 TRIC CORPORATION SHALL PERMIT THE INTERCONNECTION OF A SHARED RENEWABLE 38 ENERGY FACILITY NOR ACCEPT A SUBSCRIPTION ROSTER FROM A SUBSCRIBER 39 COMPANY FOR A SHARED RENEWABLE ENERGY FACILITY UNLESS SUCH FACILITY (A) 40 HAS AT LEAST TEN SUBSCRIBERS; AND (B) IS LOCATED IN A SHARED RENEWABLE 41 ENERGY FACILITY COMPATIBILITY AND ACCOMMODATION ZONE AS REFLECTED ON A 42 MAP PURSUANT TO SUBDIVISION FOUR OF THIS SECTION. EACH ELECTRIC CORPO- 43 RATION SHALL INTERCONNECT SHARED RENEWABLE ENERGY FACILITIES LOCATED 44 WITHIN THE BOUNDARIES OF THE SHARED RENEWABLE ENERGY FACILITY COMPAT- 45 IBILITY AND ACCOMMODATION ZONE MAP PURSUANT TO SUBDIVISION FOUR OF THIS 46 SECTION ON A FIRST COME, FIRST SERVED BASIS, UNTIL THE TOTAL RATED 47 GENERATING CAPACITY ATTRIBUTABLE TO SUCH FACILITIES IS EQUIVALENT TO ONE 48 HALF OF ONE PERCENT OF THE ELECTRIC CORPORATION'S ELECTRIC DEMAND FOR 49 THE YEAR TWO THOUSAND FIVE, AS DETERMINED BY THE COMMISSION, PROVIDED 50 THAT THE COMMISSION SHALL HAVE THE AUTHORITY, AFTER JANUARY FIRST, TWO 51 THOUSAND TWENTY-FIVE, TO INCREASE THE PERCENT LIMIT IF IT DETERMINES 52 THAT ADDITIONAL INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES IS 53 IN THE PUBLIC INTEREST, PROVIDED FURTHER THAT NO GREATER THAN TWENTY 54 PERCENT OF THE COMBINED NAMEPLATE CAPACITY OF SHARED RENEWABLE ENERGY 55 FACILITIES AUTHORIZED PURSUANT TO THIS SECTION SHALL BE LOCATED IN A 56 POTENTIAL ENVIRONMENTAL JUSTICE AREA AS DETERMINED BY THE DEPARTMENT OF A. 107 6 1 ENVIRONMENTAL CONSERVATION, AS SUCH AREAS WERE DEPICTED ON MAY FIFTH, 2 TWO THOUSAND FOURTEEN. IN THE EVENT THAT THE ELECTRIC CORPORATION DETER- 3 MINES THAT IT IS NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANS- 4 FORMERS, OR OTHER EQUIPMENT TO PROTECT THE SAFETY AND ADEQUACY OF ELEC- 5 TRIC SERVICE PROVIDED TO CUSTOMERS, THE SUBSCRIBER COMPANY SHALL PAY THE 6 ELECTRIC CORPORATION'S ACTUAL COSTS OF INSTALLING THE TRANSFORMER OR 7 TRANSFORMERS, OR OTHER EQUIPMENT. 8 9. (A) FOR A SHARED RENEWABLE ENERGY FACILITY, THE TOTAL AMOUNT OF 9 ELECTRICAL OUTPUT AVAILABLE FOR ALLOCATION TO SUBSCRIBERS SHALL BE 10 DETERMINED BY A PRODUCTION METER INSTALLED AT THE SHARED RENEWABLE ENER- 11 GY FACILITY AND PAID FOR BY THE SUBSCRIBER COMPANY OWNING SUCH SHARED 12 RENEWABLE ENERGY FACILITY. IT SHALL BE THE RESPONSIBILITY OF THE ELEC- 13 TRIC CORPORATION TO READ THE PRODUCTION METER AND APPLY BILL CREDITS TO 14 SUBSCRIBERS OF SUCH FACILITIES AS DIRECTED UNDER A SUBSCRIPTION ROSTER, 15 PROVIDED THAT AN ELECTRIC CORPORATION MAY ASSESS A CHARGE TO A SUBSCRIB- 16 ER COMPANY TO RECOVER REASONABLE EXPENSES RELATED TO THE READING OF A 17 PRODUCTION METER. 18 (B) A SUBSCRIBER COMPANY SHALL BE RESPONSIBLE FOR PROVIDING TO THE 19 ELECTRIC CORPORATION, AT THE BEGINNING OF EACH BILLING CYCLE, OR OTHER 20 PERIOD AS DETERMINED BY THE COMMISSION, A SUBSCRIPTION ROSTER IDENTIFY- 21 ING THE PRO-RATA SHARE OF ELECTRICAL OUTPUT ALLOCATED TO EACH SUBSCRIB- 22 ER. A SUBSCRIBER COMPANY MAY ADD ADDITIONAL SUBSCRIBER AGREEMENTS TO A 23 SUBSCRIPTION ROSTER FOR THE PRECEDING BILLING CYCLE, OR OTHER PERIOD AS 24 DETERMINED BY THE COMMISSION. 25 (C) AT THE END OF EACH MONTH, THE ELECTRIC CORPORATION SHALL APPLY A 26 CREDIT TO THE NEXT BILL FOR SERVICE TO EACH SUBSCRIBER BASED ON EACH 27 SUBSCRIBER'S PRO-RATA SHARE OF THE ACTUAL ELECTRICAL OUTPUT OF SUCH 28 FACILITY AT THE SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE 29 PROVIDED TO OTHER CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT 30 SUBSCRIBE TO A SHARED RENEWABLE ENERGY FACILITY. 31 (D) IN THE EVENT THAT THE ELECTRICAL OUTPUT PRODUCED BY A SHARED 32 RENEWABLE ENERGY FACILITY AND ALLOCATED TO A SUBSCRIBER DURING A BILLING 33 PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY USED BY A SUBSCRIBER, THE ELEC- 34 TRIC CORPORATION SHALL APPLY A CREDIT FOR SUCH EXCESS OUTPUT TO THE NEXT 35 BILL FOR SERVICE TO THE SUBSCRIBER FOR THE NET ELECTRICITY PROVIDED AT 36 THE SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER 37 CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT SUBSCRIBE TO A SHARED 38 RENEWABLE ENERGY FACILITY. 39 (E) IN THE EVENT THAT THE ELECTRIC CORPORATION IMPOSES CHARGES BASED 40 ON KILOWATT DEMAND ON CUSTOMERS WHO ARE IN THE SAME SERVICE CLASS AS A 41 SUBSCRIBER WHO IS ENTITLED TO THE OUTPUT OF A SHARED RENEWABLE ENERGY 42 FACILITY PURSUANT TO A SUBSCRIPTION IN A SHARED RENEWABLE ENERGY FACILI- 43 TY BUT ARE NOT SUBSCRIBERS, THE ELECTRIC CORPORATION MAY IMPOSE THE SAME 44 CHARGES AT THE SAME RATES TO THE SUBSCRIBER, PROVIDED HOWEVER, THAT THE 45 KILOWATT DEMAND FOR SUCH DEMAND CHARGES IS DETERMINED BY THE MAXIMUM 46 MEASURED KILOWATT DEMAND ACTUALLY SUPPLIED BY THE ELECTRIC CORPORATION 47 TO THE SUBSCRIBER DURING THE BILLING PERIOD. 48 10. (A) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS 49 SECTION, THE COMMISSION SHALL ESTABLISH STANDARDS FOR THE SAFE AND 50 ADEQUATE INTERCONNECTION OF SHARED RENEWABLE ENERGY FACILITIES. SUCH 51 STANDARDS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO: 52 (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE FACILITY FROM THE 53 ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEM FOR VOLTAGE IN THE CASE OF 54 VOLTAGE AND FREQUENCY DEVIATIONS, POWER OUTAGES AND OTHER EVENTS THE 55 COMMISSION DEEMS NECESSARY; AND A. 107 7 1 (II) A MANUAL LOCKABLE DISCONNECT SWITCH PAID FOR AND INSTALLED BY THE 2 SUBSCRIBER COMPANY FOR THE PURPOSE OF ISOLATING THE FACILITY AND LOCATED 3 IN AN EASILY ACCESSIBLE AREA ON THE PREMISES OF SUCH SHARED RENEWABLE 4 ENERGY FACILITY AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF ISOLATING 5 THE SHARED RENEWABLE ENERGY FACILITY. 6 (B) IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF A SHARED 7 RENEWABLE ENERGY FACILITY THAT PROVIDES ELECTRICITY TO THE ELECTRIC 8 CORPORATION THROUGH THE SAME LOCAL FEEDER LINE EXCEEDS TWENTY PERCENT OF 9 THE RATED CAPACITY OF THE LOCAL FEEDER LINE, THE ELECTRIC CORPORATION 10 MAY REQUIRE THE SUBSCRIBER COMPANY OWNING SUCH SHARED RENEWABLE ENERGY 11 FACILITY TO COMPLY WITH REASONABLE MEASURES TO ENSURE THE SAFETY OF THE 12 LOCAL FEEDER LINE. 13 (C) UPON ITS OWN MOTION OR UPON A COMPLAINT, THE COMMISSION, OR ITS 14 DESIGNATED REPRESENTATIVE, MAY INVESTIGATE AND MAKE A DETERMINATION AS 15 TO THE REASONABLENESS AND NECESSITY OF THE STANDARDS OR RESPONSIBILITY 16 FOR COMPLIANCE WITH THE STANDARDS. 17 S 5. Subdivision (h) of section 1020-g of the public authorities law, 18 as amended by chapter 546 of the laws of 2011, is amended to read as 19 follows: 20 (h) To implement programs and policies designed to provide for the 21 interconnection of: (i) (A) solar electric generating equipment owned or 22 operated by residential customers, (B) farm waste electric generating 23 equipment owned or operated by customer-generators, (C) solar electric 24 generating equipment owned or operated by non-residential customers, (D) 25 micro-combined heat and power generating equipment owned, leased or 26 operated by residential customers, (E) fuel cell electric generating 27 equipment owned, leased or operated by residential customers, and (F) 28 micro-hydroelectric generating equipment owned, leased or operated by 29 customer-generators and for net energy metering consistent with section 30 sixty-six-j of the public service law, to increase the efficiency of 31 energy end use, to shift demand from periods of high demand to periods 32 of low demand and to facilitate the development of cogeneration; [and] 33 (ii) wind electric generating equipment owned or operated by customer- 34 generators and for net energy metering consistent with section sixty- 35 six-l of the public service law; AND (III) TO IMPLEMENT PROGRAMS AND 36 POLICIES DESIGNED TO PROVIDE FOR THE INTERCONNECTION OF SHARED RENEWABLE 37 ENERGY FACILITIES OWNED AND OPERATED BY SUBSCRIBER COMPANIES FOR THE 38 BENEFIT OF RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS CONSISTENT WITH 39 SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW. 40 S 6. This act shall take effect immediately.